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Home My WebLink AboutMINUTES - 09091997 - C54 TO: BOARD OF SUPERVISORS . Contra Phil Batchelor, County Administrator FROM: Costa September 2, 1997 County DATE: oo...... _ _ LEGISLATION: SB 431 (Lee) - EXCLUDES THE COUNTY LIB Y FROM SUBJECT: HAVING TO CONTRIBUTE . PROPERTY TAX REVENUE TO THE EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. ACKNOWLEDGE that the Board of Supervisors is a CO-SPONSOR of SB 431 by Senator Barbara Lee, which would clarify the Legislature's intent regarding having this County's library contribute property tax revenue to the Educational Revenue Augmentation Fund (ERAF) by specifying that a library which did not impose a separate property tax rate prior to Proposition 13 and did not receive State bailout following the passage of proposition 13 is not required to contribute to the ERAF. BACKGROUND: There is apparently some lack of clarity regarding which county libraries are required to contribute to the Educational Revenue Augmentation Fund (ERAF) and for which years. The State Controller recently issued an opinion to the effect that libraries were to contribute to ERAF for the 1992-93 and 1993-94 fiscal years, but not thereafter. The Legislature apparently believes that libraries were supposed to contribute for all years through the present and into the future indefinitely. This County has argued that its County Library is not required to contribute to the ERAF because the Library did not impose a separate property tax rate prior to Proposition 13 and therefore did not receive any State bailout following the passage of Proposition 13. Our library has never contributed to the ERAF on the basis of this position. CONTINUED ON ATTACHMENT: YES SIGNATURE: 4 RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS -�--- 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT r AND CORRECT COPY OF AN ACTION TAKEN AYES: _NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC- ATTESTED September 9, 1997 See Page 2 PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY r, ,DEPUTY A Trailer Bill to the 1997-98 State Budget [AB 1589 - Pringle (Chapter 290, Statutes of 1997)] was enacted this year with language which attempts to clarify the position of the Legislature that libraries are to contribute to the ERAF for all years. This language is specifically intended to overturn the opinion of the State Controller but only addresses the years for which libraries are supposed to contribute. However, this language does not resolve the.more basic issue which Contra Costa County has regarding whether our library should even have contributed in the first place. Two other counties, Sacramento and Sonoma, are faced with similar problems, although for different reasons. The solution to each county's problem is also different. The three counties have jointly co-sponsored SB 431 to resolve our respective problems-and exclude our libraries from having to contribute to the ERAF. Enactment of SB 431 will terminate the need to continue our appeal of the Controller's opinion on this subject and will also clarify the Legislature intentions in this regard, essentially locking the opinion of this County into statute. It is, therefore, appropriate for the Board of Supervisors to acknowledge its sponsorship of SB 431. cc: County Administrator Kenneth J. Corcoran, Auditor-Controller Anne Marie Gold, County Librarian Victor J. Westman, County Counsel Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 -2- AMENDED IN ASSEMBLY AUGUST 25, 1997 AMENDED IN SENATE MAY 13, 1997 AMENDED IN SENATE MAY 1, 1997 y� SENATE BILL No.-:431 Introduced by Senator Gesta Lee February 18, 1997 An act to amend Section 97.37ofthe Revenue and Taxation Code, relating to meetings.10calgoveriiment. LEGISLATIVE cOUNSEL'S DIGEST SB 431, as amended, Gesta Lee. Open meetings of leeal Local libraries:property tax revenue. Existing property tax la w prohibits a coon ty a uditor, for the 1994-95 fiscal year and each fiscal year thereafter, from reducing the amount ofad'valorem property tax revenue that is. deemed allocated in the prior fiscal year to any of certain. types of local library entities for purposes of increasing ,the amount of ad. valorem property tax revenues allocated to a different jurisdiction: ,This bill would clarify that this prohibition does not preclude a county auditor from allocating, ad valorem property tax revenues to the' county's Educational Revenue Augmentation Fund, rather than . to a library entity as . described.in existing law, as a result of a reduction made pursuant to specified statutesin the 1992-93,and.X.993-94fiscal years m , he amounts . of property tax revenue deemed allocated to that entity in the iiscal years prior to those fiscal years. This bill would also prohibit'the shift of property tax 96 SB 431 — 2 — revenues. 2revenues. from certain county free libraries to a coun ty s Educational Revenue Augmentation Fund, and would clarify the-status of certain' county free libraries as special districts subject to revenue allocation and shift requirements. This bill would specify that these provisions do not constitute a change M., but are declaratory of existing law. The Ralph M-. n whieh s re , ttieetings of the 8,10.ft t%i bedies. of lee41 be eendtiet e�e�-'-ems the use of deo iele_eft fe -nei g fer the 14�ited of the reeeipt of publie t _n.. e testimettyby e boe� -I,- Elel i..,...atier„ of the This bil wettlElperfnit the Le Q4 Q1 ett bediesof the Sftn jeaquin Unified Air Pellutiett Gentrel Distriet the of G..y,......_.., ents to use wee teleeett f,.w....,,-.iii as .e eFh'aed- fay a4 porpes in "4th at+y fnee6ng withift A-9 subjeef t t=r. T4ie h4 wetild these ems-, �s to a s a e r QQ4Q1Atu- e =o-------- tftg # eire� to this, bill- The W4 A. rrepea4 its of jan 4; 2993. Vote: majority. Appropriation: no. Fiscal committee: no. J Y• State-mandated local program: no. The people of the State of California" do enact as follows., _ 2 SECTION I. Section 97.37, of the Revenue , and . 3 Taxation Code is amended to read..• 4 97.37. (a) Notwithstanding any other provision of 51 this "chapter, for the" 1994-95 fiscal year and each fiscal 6 year. thereafter, the `amount .of property tax revenue r; 7; deemed allocated,in the prior fiscal year to a county free 8. . library,system, or a library established as an independent 9 'special district, shall not be reduced for purposes ,-,of 10 'increasing the amount of property tax` 'revenue'. to be .11 ; allocated. to another jurisdiction.' This, section "does not 12 apply.to any adjustments,in property tax.allocations made 13 pursuant to Section,19116 of the Education Code. This 14 (b) .(1) Thissection shall not be construed.to preclude 15 allocations of ad valorem property tax revenue, to a =.� ss -3 = SB 431 1 ' county's Educational Revenue Augmentation Fund 2 rather than to a county free library system or a library 3 established as an independent special district, that are 4 required by the application to a library system or library ` 5 district, as so described, of Sections 9Z2 and 97.3. The 6 Legislature finds and declares that this paragraph does 7 not constitute. a change in,, but is declaratory of, existing 8 law. 9 (2) This section does not apply to any adjustments in 10 property tax allocations made.pursuant to Section 19116 11 of the Education,Code. 12 .(c) (1) . Notwithstanding any other provision 'of this 13 chapter, all of the following shall apply:• 14 (A) No allocation of ad valorem property tax revenue . 15 to a county's Educational Revenue Augmentation. Fund 16 shall be required from a county free library system that 17 did not levy a property tax rate separate from the 18 property tax rate -of the county for,the 1975-76, 1976-77, 19 and 1977-78 fiscal years, was not entitled to an allocation 20 ofproperty taxrevenue for the 19779 and 1979-,SOfiscal .. 21 years, and did not receive state assistance payments 22 pursuant to Section . 16260, 26912, or 26912.1 of the 23 Government Code. 24 (B) No allocation of ad valorem property tax revenue 25 to a county's Educational Revenue Augmentation Fund 26 shall be required from a county free library system that, 27 for the 1977-78Rscal year, was organized as a jointpowers 28 agencypursuant to Chapter5 (commencing with Section 29 6500) of Division 7 of Title of the .Government Code. 30 (C), A county free library established pursuant to 31 Article 1 (com.mencing.with Section 19100) ofChapter.6 32 of Part 11 of Dl;vision l of Title 1 of the Education Code, 33 for which a separate property tax rate was levied in the 34 : 1977 78 Bscal year, shall be considered a special district. 35 However, any county free library that was not actuahy 36 - allocated property tax revenues pursuant to this chapter 37 for the 199293 fiscal year and any portion of the 199 94 38. fiscal year shall not be'.considered a special districtfor any 39 purpose in the 1992-93 Rscal year and that portion of the I I / I / 'im'i Iwo • .01 AOMV2-0 iRLW7 OL-1 41 27T.W. -AW70tOM :w i • - - _ : • - I w OMOM - - •" Oak A-M • • WA 0 ON-AW • - - - - - _p VAN - - _ -••- - • • NO mill WWALWA mWN PM lie • r. i i i • i • . • :w PRE - - . • • • :•" i : i .•• : v. ••� �. . • v . v SB 43� , t e � i � 31 or