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2005 California Revenue and Taxation Code Sections 97-97.77 Article 3. Revenue Allocation Shifts for Education
REVENUE AND TAXATION CODESECTION 97-97.77
97. (a) Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to Section
96.1 or its predecessor section, for the 1992-93 fiscal year only,
shall be modified as follows:
(1) The amount of property tax revenue deemed allocated to the
county or city and county in the prior fiscal year shall be reduced
by an amount equal to one dollar and ninety-two cents ($1.92) per
each resident of the county or city and county. In addition, the
amount of property tax revenue deemed allocated in the prior fiscal
year to each city or city and county shall be reduced by an amount
equal to one dollar and sixty-five cents ($1.65) per each resident of
that city or city and county.
(2) The amount of property tax revenues not allocated to the
county, city and county, and any city as a result of the reductions
calculated pursuant to paragraph (1) shall be deposited in the
Educational Revenue Augmentation Fund pursuant to paragraph (1) of
subdivision (d) of Section 97.2.
(b) Notwithstanding any other provision of this chapter, for the
1993-94 fiscal year only, for purposes of the calculations and
allocations made by each county pursuant to Section 96.1, the amount
of property tax revenue deemed allocated in the prior fiscal year to
the Educational Revenue Augmentation Fund shall be reduced by the
total amount of the reductions required for each county or city and
county and each city or city and county pursuant to paragraph (1) of
subdivision (a).
(c) For the purpose of this section, the population of a city,
county, or city and county shall be the population determined
pursuant to Section 11005.
97.1. (a) Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to Section
96.1 or its predecessor section, as modified by Section 97.2 or its
predecessor section for the 1992-93 fiscal year, shall be modified
for the 1993-94 fiscal year as follows:
(1) The amount of property tax revenue deemed allocated to the
county or city and county in the prior fiscal year shall be reduced
by an amount equal to seventy-eight cents ($0.78) per each resident
of the county or city and county. In addition, the amount of
property tax revenue deemed allocated in the prior fiscal year to
each city or city and county shall be reduced by an amount equal to
ninety-nine cents ($0.99) per each resident of that city or city and
county.
(2) The amount of property tax revenues not allocated to the
county, city and county, and any city as a result of the reductions
calculated pursuant to paragraph (1) shall be deposited in the
Educational Revenue Augmentation Fund established pursuant to
paragraph (1) of subdivision (d) of Section 97.2.
(b) For the purpose of this section, the population of a city,
county, or city and county shall be the population determined
pursuant to Section 11005.
97.2. Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to Section
96.1 or its predecessor section shall be modified for the 1992-93
fiscal year pursuant to subdivisions (a) to (d), inclusive, and for
the 1997-98 and 1998-99 fiscal years pursuant to subdivision (e), as
follows:
(a) (1) Except as provided in paragraph (2), the amount of
property tax revenue deemed allocated in the prior fiscal year to
each county shall be reduced by the dollar amounts indicated as
follows, multiplied by 0.953649:
Property
Tax Reduction
per County
Alameda ....................... $ 27,323,576
Alpine ........................ 5,169
Amador ........................ 286,131
Butte ......................... 846,452
Calaveras ..................... 507,526
Colusa ........................ 186,438
Contra Costa .................. 12,504,318
Del Norte ..................... 46,523
El Dorado ..................... 1,544,590
Fresno ........................ 5,387,570
Glenn ......................... 378,055
Humboldt ...................... 1,084,968
Imperial ...................... 998,222
Inyo .......................... 366,402
Kern .......................... 6,907,282
Kings ......................... 1,303,774
Lake .......................... 998,222
Lassen ........................ 93,045
Los Angeles ................... 244,178,806
Madera ........................ 809,194
Marin ......................... 3,902,258
Mariposa ...................... 40,136
Mendocino ..................... 1,004,112
Merced ........................ 2,445,709
Modoc ......................... 134,650
Mono .......................... 319,793
Monterey ...................... 2,519,507
Napa .......................... 1,362,036
Nevada ........................ 762,585
Orange ........................ 9,900,654
Placer ........................ 1,991,265
Plumas ........................ 71,076
Riverside ..................... 7,575,353
Sacramento .................... 15,323,634
San Benito .................... 198,090
San Bernardino ................ 14,467,099
San Diego ..................... 17,687,776
San Francisco ................. 53,266,991
San Joaquin ................... 8,574,869
San Luis Obispo ............... 2,547,990
San Mateo ..................... 7,979,302
Santa Barbara ................. 4,411,812
Santa Clara ................... 20,103,706
Santa Cruz .................... 1,416,413
Shasta ........................ 1,096,468
Sierra ........................ 97,103
Siskiyou ...................... 467,390
Solano ........................ 5,378,048
Sonoma ........................ 5,455,911
Stanislaus .................... 2,242,129
Sutter ........................ 831,204
Tehama ........................ 450,559
Trinity ....................... 50,399
Tulare ........................ 4,228,525
Tuolumne ...................... 740,574
Ventura ....................... 9,412,547
Yolo .......................... 1,860,499
Yuba .......................... 842,857
(2) Notwithstanding paragraph (1), the amount of the reduction
specified in that paragraph for any county or city and county that
has been materially and substantially impacted as a result of a
federally declared disaster, as evidenced by at least 20 percent of
the cities, or cities and unincorporated areas of the county
representing 20 percent of the population within the county suffering
substantial damage, as certified by the Director of the Office of
Emergency Services, occurring between October 1, 1989, and the
effective date of this section, shall be reduced by that portion of
five million dollars ($5,000,000) determined for that county or city
and county pursuant to subparagraph (B) of paragraph (3).
(3) On or before October 1, 1992, the Director of Finance shall do
all of the following:
(A) Determine the population of each county and city and county in
which a federally declared disaster has occurred between October 1,
1989, and the effective date of this section.
(B) Determine for each county and city and county as described in
subparagraph (A) its share of five million dollars ($5,000,000) on
the basis of that county's population relative to the total
population of all counties described in subparagraph (A).
(C) Notify each auditor of each county and city and county of the
amounts determined pursuant to subparagraph (B).
(b) (1) Except as provided in paragraph (2), the amount of
property tax revenue deemed allocated in the prior fiscal year to
each city, except for a newly incorporated city that did not receive
property tax revenues in the 1991-92 fiscal year, shall be reduced by
9 percent. In making the above computation with respect to cities
in Alameda County, the computation for a city described in paragraph
(6) of subdivision (a) of Section 100.7, as added by Section 73.5 of
Chapter 323 of the Statutes of 1983, shall be adjusted so that the
amount multiplied by 9 percent is reduced by the amount determined
for that city for "museums" pursuant to paragraph (2) of subdivision
(h) of Section 95.
(2) Notwithstanding paragraph (1), the amount of the reduction
determined pursuant to that paragraph for any city that has been
materially and substantially impacted as a result of a federally
declared disaster, as certified by the Director of the Office of
Emergency Services, occurring between October 1, 1989, and the
effective date of this section, shall be reduced by that portion of
fifteen million dollars ($15,000,000) determined for that city
pursuant to subparagraph (B) of paragraph (3).
(3) On or before October 1, 1992, the Director of Finance shall do
all of the following:
(A) Determine the population of each city in which a federally
declared disaster has occurred between October 1, 1989, and the
effective date of this section.
(B) Determine for each city as described in subparagraph (A) its
share of fifteen million dollars ($15,000,000) on the basis of that
city's population relative to the total population of all cities
described in subparagraph (A).
(C) Notify each auditor of each county and city and county of the
amounts determined pursuant to subparagraph (B).
(4) In the 1992-93 fiscal year and each fiscal year thereafter,
the auditor shall adjust the computations required pursuant to
Article 4 (commencing with Section 98) so that those computations do
not result in the restoration of any reduction required pursuant to
this section.
(c) (1) Subject to paragraph (2), the amount of property tax
revenue, other than those revenues that are pledged to debt service,
deemed allocated in the prior fiscal year to a special district,
other than a multicounty district, a local hospital district, or a
district governed by a city council or whose governing board has the
same membership as a city council, shall be reduced by 35 percent.
For purposes of this subdivision, "revenues that are pledged to debt
service" include only those amounts required to pay debt service
costs in the 1991-92 fiscal year on debt instruments issued by a
special district for the acquisition of capital assets.
(2) No reduction pursuant to paragraph (1) for any special
district, other than a countywide water agency that does not sell
water at retail, shall exceed an amount equal to 10 percent of that
district's total annual revenues, from whatever source, as shown in
the 1989-90 edition of the State Controller's Report on Financial
Transactions Concerning Special Districts (not including any annual
revenues from fiscal years following the 1989-90 fiscal year). With
respect to any special district, as defined pursuant to subdivision
(m) of Section 95, that is allocated property tax revenue pursuant to
this chapter but does not appear in the State Controller's Report on
Financial Transactions Concerning Special Districts, the auditor
shall determine the total annual revenues for that special district
from the information in the 1989-90 edition of the State Controller's
Report on Financial Transactions Concerning Counties. With respect
to a special district that did not exist in the 1989-90 fiscal year,
the auditor may use information from the first full fiscal year, as
appropriate, to determine the total annual revenues for that special
district. No reduction pursuant to paragraph (1) for any countywide
water agency that does not sell water at retail shall exceed an
amount equal to 10 percent of that portion of that agency's general
fund derived from property tax revenues.
(3) The auditor in each county shall, on or before January 15,
1993, and on or before January 30 of each year thereafter, submit
information to the Controller concerning the amount of the property
tax revenue reduction to each special district within that county as
a result of paragraphs (1) and (2). The Controller shall certify
that the calculation of the property tax revenue reduction to each
special district within that county is accurate and correct, and
submit this information to the Director of Finance.
(A) The Director of Finance shall determine whether the total of
the amounts of the property tax revenue reductions to special
districts, as certified by the Controller, is equal to the amount
that would be required to be allocated to school districts and
community college districts as a result of a three hundred
seventy-five million dollar ($375,000,000) shift of property tax
revenues from special districts for the 1992-93 fiscal year. If, for
any year, the total of the amount of the property tax revenue
reductions to special districts is less than the amount as described
in the preceding sentence, the amount of property tax revenue, other
than those revenues that are pledged to debt service, deemed
allocated in the prior fiscal year to a special district, other than
a multicounty district, a local hospital district, or a district
governed by a city council or whose governing board has the same
membership as a city council, shall, subject to subparagraph (B), be
reduced by an amount up to 5 percent of the amount subject to
reduction for that district pursuant to paragraphs (1) and (2).
(B) No reduction pursuant to subparagraph (A), in conjunction with
a reduction pursuant to paragraphs (1) and (2), for any special
district, other than a countywide water agency that does not sell
water at retail, shall exceed an amount equal to 10 percent of that
district's total annual revenues, from whatever source, as shown in
the most recent State Controller's Report on Financial Transactions
Concerning Special Districts. No reduction pursuant to subparagraph
(A), in conjunction with a reduction pursuant to paragraphs (1) and
(2), for any countywide water agency that does not sell water at
retail shall exceed an amount equal to 10 percent of that portion of
that agency's general fund derived from property tax revenues.
(C) In no event shall the amount of the property tax revenue loss
to a special district derived pursuant to subparagraphs (A) and (B)
exceed 40 percent of that district's property tax revenues or 10
percent of that district's total revenues, from whatever source.
(4) For the purpose of determining the total annual revenues of a
special district that provides fire protection or fire suppression
services, all of the following shall be excluded from the
determination of total annual revenues:
(A) If the district had less than two million dollars ($2,000,000)
in total annual revenues in the 1991-92 fiscal year, the revenue
generated by a fire suppression assessment levied pursuant to Article
3.6 (commencing with Section 50078) of Chapter 1 of Part 1 of
Division 1 of Title 5 of the Government Code.
(B) The total amount of all funds, regardless of the source, that
are appropriated to a district, including a fire department, by a
board of supervisors pursuant to Section 25642 of the Government Code
or Chapter 7 (commencing with Section 13890) of Part 2.7 of Division
12 of the Health and Safety Code for fire protection. The amendment
of this subparagraph by Chapter 290 of the Statutes of 1997 shall
not be construed to affect any exclusion from the total annual
revenues of a special district that was authorized by this
subparagraph as it read prior to that amendment.
(C) The revenue received by a district as a result of contracts
entered into pursuant to Section 4133 of the Public Resources Code.
(5) For the purpose of determining the total annual revenues of a
resource conservation district, all of the following shall be
excluded from the determination of total annual revenues:
(A) Any revenues received by that district from the state for
financing the acquisition of land, or the construction or improvement
of state projects, and for which that district serves as the fiscal
agent in administering those state funds pursuant to an agreement
entered into between that district and a state agency.
(B) Any amount received by that district as a private gift or
donation.
(C) Any amount received as a county grant or contract as
supplemental to, or independent of, that district's property tax
share.
(D) Any amount received by that district as a federal or state
grant.
(d) (1) The amount of property tax revenues not allocated to the
county, cities within the county, and special districts as a result
of the reductions calculated pursuant to subdivisions (a), (b), and
(c) shall instead be deposited in the Educational Revenue
Augmentation Fund to be established in each county. The amount of
revenue in the Educational Revenue Augmentation Fund, derived from
whatever source, shall be allocated pursuant to paragraphs (2) and
(3) to school districts and county offices of education, in total,
and to community college districts, in total, in the same proportion
that property tax revenues were distributed to school districts and
county offices of education, in total, and community college
districts, in total, during the 1991-92 fiscal year.
(2) The auditor shall, based on information provided by the county
superintendent of schools pursuant to this paragraph, allocate the
proportion of the Educational Revenue Augmentation Fund to those
school districts and county offices of education within the county
that are not excess tax school entities, as defined in subdivision
(n) of Section 95. The county superintendent of schools shall
determine the amount to be allocated to each school district and
county office of education in inverse proportion to the amounts of
property tax revenue per average daily attendance in each school
district and county office of education. In no event shall any
additional money be allocated from the fund to a school district or
county office of education upon that school district or county office
of education becoming an excess tax school entity.
(3) The auditor shall, based on information provided by the
Chancellor of the California Community Colleges pursuant to this
paragraph, allocate the proportion of the Educational Revenue
Augmentation Fund to those community college districts within the
county that are not excess tax school entities, as defined in
subdivision (n) of Section 95. The chancellor shall determine the
amount to be allocated to each community college district in inverse
proportion to the amounts of property tax revenue per funded
full-time equivalent student in each community college district. In
no event shall any additional money be allocated from the fund to a
community college district upon that district becoming an excess tax
school entity.
(4) (A) If, after making the allocation required pursuant to
paragraph (2), the auditor determines that there are still additional
funds to be allocated, the auditor shall allocate those excess funds
pursuant to paragraph (3). If, after making the allocation pursuant
to paragraph (3), the auditor determines that there are still
additional funds to be allocated, the auditor shall allocate those
excess funds pursuant to paragraph (2).
(B) (i) For the 1995-96 fiscal year and each fiscal year
thereafter, if, after making the allocations pursuant to paragraphs
(2) and (3) and subparagraph (A), the auditor determines that there
are still additional funds to be allocated, the auditor shall,
subject to clauses (ii) and (iii), allocate those excess funds to the
county superintendent of schools. Funds allocated pursuant to this
clause shall be counted as property tax revenues for special
education programs in augmentation of the amount calculated pursuant
to Section 2572 of the Education Code, to the extent that those
property tax revenues offset state aid for county offices of
education and school districts within the county pursuant to
subdivision (c) of Section 56836.08 of the Education Code. If, for
the 2000-01 fiscal year or any fiscal year thereafter, any additional
revenues remain after the implementation of this clause, the auditor
shall allocate those remaining revenues among the county, cities,
and special districts in proportion to the amounts of ad valorem
property tax revenue otherwise required to be shifted from those
local agencies to the county's Educational Revenue Augmentation Fund
for the relevant fiscal year.
(ii) For the 1995-96 fiscal year only, clause (i) shall have no
application to the County of Mono and the amount allocated pursuant
to clause (i) in the County of Marin shall not exceed five million
dollars ($5,000,000).
(iii) For the 1996-97 fiscal year only, the total amount of funds
allocated by the auditor pursuant to clause (i) and clause (i) of
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3
shall not exceed that portion of two million five hundred thousand
dollars ($2,500,000) that corresponds to the county's proportionate
share of all moneys allocated pursuant to clause (i) and clause (i)
of subparagraph (B) of paragraph (4) of subdivision (d) of Section
97.3 for the 1995-96 fiscal year. Upon the request of the auditor,
the Department of Finance shall provide to the auditor all
information in the department's possession that is necessary for the
auditor to comply with this clause.
(iv) Notwithstanding clause (i) of this subparagraph, for the
1999-2000 fiscal year only, if, after making the allocations pursuant
to paragraphs (2) and (3) and subparagraph (A), the auditor
determines that there are still additional funds to be allocated, the
auditor shall allocate the funds to the county, cities, and special
districts in proportion to the amounts of ad valorem property tax
revenue otherwise required to be shifted from those local agencies to
the county's Educational Revenue Augmentation Fund for the relevant
fiscal year. The amount allocated pursuant to this clause shall not
exceed eight million two hundred thirty-nine thousand dollars
($8,239,000), as appropriated in Item 6110-250-0001 of Section 2.00
of the Budget Act of 1999 (Chapter 50, Statutes of 1999). This
clause shall be operative for the 1999-2000 fiscal year only to the
extent that moneys are appropriated for purposes of this clause in
the Budget Act of 1999 by an appropriation that specifically
references this clause.
(C) For purposes of allocating the Educational Revenue
Augmentation Fund for the 1996-97 fiscal year, the auditor shall,
after making the allocations for special education programs, if any,
required by subparagraph (B), allocate all remaining funds among the
county, cities, and special districts in proportion to the amounts of
ad valorem property tax revenue otherwise required to be shifted
from those local agencies to the county's Educational Revenue
Augmentation Fund for the relevant fiscal year. For purposes of ad
valorem property tax revenue allocations for the 1997-98 fiscal year
and each fiscal year thereafter, no amount of ad valorem property tax
revenue allocated to the county, a city, or a special district
pursuant to this subparagraph shall be deemed to be an amount of ad
valorem property tax revenue allocated to that local agency in the
prior fiscal year.
(5) For purposes of allocations made pursuant to Section 96.1 or
its predecessor section for the 1993-94 fiscal year, the amounts
allocated from the Educational Revenue Augmentation Fund pursuant to
this subdivision, other than amounts deposited in the Educational
Revenue Augmentation Fund pursuant to Section 33681 of the Health and
Safety Code, shall be deemed property tax revenue allocated to the
Educational Revenue Augmentation Fund in the prior fiscal year.
(e) (1) For the 1997-98 fiscal year:
(A) The amount of property tax revenue deemed allocated in the
prior fiscal year to any city subject to the reduction specified in
paragraph (2) of subdivision (b) shall be reduced by an amount that
is equal to the difference between the amount determined for the city
pursuant to paragraph (1) of subdivision (b) and the amount of the
reduction determined for the city pursuant to paragraph (2) of
subdivision (b).
(B) The amount of property tax revenue deemed allocated in the
prior fiscal year to any county or city and county subject to the
reduction specified in paragraph (2) of subdivision (a) shall be
reduced by an amount that is equal to the difference between the
amount specified for the county or city and county pursuant to
paragraph (1) of subdivision (a) and the amount of the reduction
determined for the county or city and county pursuant to paragraph
(2) of subdivision (a).
(2) The amount of property tax revenues not allocated to a city or
city and county as a result of this subdivision shall be deposited
in the Educational Revenue Augmentation Fund described in
subparagraph (A) of paragraph (1) of subdivision (d).
(3) For purposes of allocations made pursuant to Section 96.1 for
the 1998-99 fiscal year, the amounts allocated from the Educational
Revenue Augmentation Fund pursuant to this subdivision shall be
deemed property tax revenues allocated to the Educational Revenue
Augmentation Fund in the prior fiscal year.
(f) It is the intent of the Legislature in enacting this section
that this section supersede and be operative in place of Section
97.03 of the Revenue and Taxation Code, as added by Senate Bill 617
of the 1991-92 Regular Session.
97.21. For the purpose of determining under Section 97.2 the total
annual revenues of a special district that provides fire protection
or fire suppression services and had less than two million dollars
($2,000,000) in total annual revenues in the 1991-92 fiscal year, all
of the following shall, in addition to any other revenues otherwise
excluded, be excluded from the determination of total annual
revenues:
(a) The revenue generated by a special tax levied pursuant to
Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of
Division 1 of Title 5 of the Government Code.
(b) The revenue generated by a special tax levied pursuant to
Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2
of Title 5 of the Government Code.
(c) The revenue generated by a special tax levied pursuant to
Article 16 (commencing with Section 53970) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code.
97.22. For the purposes of paragraph (1) of subdivision (c) of
Section 97.2, "multicounty district" includes District 2 of the
Alameda Contra Costa Transit District. This section shall be deemed
to have become operative July 1, 1992, and the auditor is hereby
authorized to adjust the 1993-94 distributions to the Educational
Revenue Augmentation Fund accordingly.
97.23. (a) Notwithstanding Section 97.2 or any successor to that
section, the Chino Basin Municipal Water District may maintain a
stream of property tax revenue as provided in former Section 97.03,
as that section read on October 11, 1993, to meet the commitment of
debt service obligated with respect to revenue bonds that were issued
in accordance with Chapter 1279 of the Statutes of 1993, on or after
the effective date of that act and prior to the effective date of
Chapter 155 of the Statutes of 1994.
(b) (1) In no event shall the total amount of the revenue stream
maintained by the Chino Basin Municipal Water District pursuant to
subdivision (a) exceed the total amount of the annual debt service
payments for those revenue bonds described in subdivision (a).
(2) If the total amount of the revenue stream maintained by the
Chino Basin Municipal Water District pursuant to subdivision (a)
exceeds the total amount of the annual debt service payments for
those revenue bonds described in subdivision (a), then the Chino
Basin Municipal Water District shall reimburse the excess amount to
the county auditor for deposit into the county's Educational Revenue
Augmentation Fund.
(c) This section shall remain in effect only until the date upon
which the revenue bonds described in subdivision (a) have been fully
amortized, and as of that date is repealed.
97.3. Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to Section
96.1 or its predecessor section, as modified by Section 97.2 or its
predecessor section for the 1992-93 fiscal year, shall be modified
for the 1993-94 fiscal year pursuant to subdivisions (a) to (c),
inclusive, as follows:
(a) The amount of property tax revenue deemed allocated in the
prior fiscal year to each county and city and county shall be reduced
by an amount to be determined by the Director of Finance in
accordance with the following:
(1) The total amount of the property tax reductions for counties
and cities and counties determined pursuant to this section shall be
one billion nine hundred ninety-eight million dollars
($1,998,000,000) in the 1993-94 fiscal year.
(2) The Director of Finance shall determine the amount of the
reduction for each county or city and county as follows:
(A) The proportionate share of the property tax revenue reduction
for each county or city and county that would have been imposed on
all counties under the proposal specified in the "May Revision of the
1993-94 Governor's Budget" shall be determined by reference to the
document entitled "Estimated County Property Tax Transfers Under
Governor's May Revision Proposal," published by the Legislative
Analyst's Office on June 1, 1993.
(B) Each county's or city and county's proportionate share of
total taxable sales in all counties in the 1991-92 fiscal year shall
be determined.
(C) An amount for each county and city and county shall be
determined by applying its proportionate share determined pursuant to
subparagraph (A) to the one billion nine hundred ninety-eight
million dollar ($1,998,000,000) statewide reduction for counties and
cities and counties.
(D) An amount for each county and city and county shall be
determined by applying its proportionate share determined pursuant to
subparagraph (B) to the one billion nine hundred ninety-eight
million dollar ($1,998,000,000) statewide reduction for counties and
cities and counties.
(E) The Director of Finance shall add the amounts determined
pursuant to subparagraphs (C) and (D) for each county and city and
county, and divide the resulting figure by two. The amount so
determined for each county and city and county shall be divided by a
factor of 1.038. The resulting figure shall be the amount of
property tax revenue to be subtracted from the amount of property tax
revenue deemed allocated in the prior fiscal year.
(3) The Director of Finance shall, by July 15, 1993, report to the
Joint Legislative Budget Committee its determination of the amounts
determined pursuant to paragraph (2).
(4) On or before August 15, 1993, the Director of Finance shall
notify the auditor of each county and city and county of the amount
of property tax revenue reduction determined for each county and city
and county.
(5) Notwithstanding any other provision of this subdivision, the
amount of the reduction specified in paragraph (2) for any county or
city and county that has first implemented, for the 1993-94 fiscal
year, the alternative procedure for the distribution of property tax
levies authorized by Chapter 3 (commencing with Section 4701) of Part
8 shall be reduced, for the 1993-94 fiscal year only, in the amount
of any increased revenue allocated to each qualifying school entity
that would not have been allocated for the 1993-94 fiscal year but
for the implementation of that alternative procedure. For purposes
of this paragraph, "qualifying school entity" means any school
district, county office of education, or community college district
that is not an excess tax school entity as defined in Section 95, and
a county's Educational Revenue Augmentation Fund as described in
subdivision (d) of this section and subdivision (d) of Section 97.2.
Notwithstanding any other provision of this paragraph, the amount of
any reduction calculated pursuant to this paragraph for any county
or city and county shall not exceed the reduction calculated for that
county or city and county pursuant to paragraph (2).
(6) Notwithstanding the provisions of paragraph (5), the amount of
the reduction specified in paragraph (2) for a county of the 16th
class that has first implemented, for the 1993-94 fiscal year, the
alternative procedure for the distribution of property tax levies
authorized by Chapter 2 (commencing with Section 4701) of Part 8
shall be reduced, for the 1993-94 fiscal year only, in the amount of
any increased revenue distributed to each qualifying school entity
that would not have been distributed for the 1993-94 fiscal year,
pursuant to the historical accounting method of that county of the
16th class, but for the implementation of that alternative procedure.
For purposes of this paragraph, "qualifying school entity" means
any school district, county office of education, or community college
district that is not an excess tax school entity as defined in
Section 95, and a county's Educational Revenue Augmentation Fund as
described in subdivision (a) of this section and subdivision (d) of
Section 97.2. Notwithstanding any other provision of this paragraph,
the amount of any reduction calculated pursuant to this paragraph
for any county shall not exceed the reduction calculated for that
county pursuant to paragraph (2).
(b) The amount of property tax revenue deemed allocated in the
prior fiscal year to each city shall be reduced by an amount to be
determined by the Director of Finance in accordance with the
following:
(1) The total amount of the property tax reductions determined for
cities pursuant to this section shall be two hundred eighty-eight
million dollars ($288,000,000) in the 1993-94 fiscal year.
(2) The Director of Finance shall determine the amount of
reduction for each city as follows:
(A) The amount of property tax revenue that is estimated to be
attributable in the 1993-94 fiscal year to the amount of each city's
state assistance payment received by that city pursuant to Chapter
282 of the Statutes of 1979 shall be determined.
(B) A factor for each city equal to the amount determined pursuant
to subparagraph (A) for that city, divided by the total of the
amounts determined pursuant to subparagraph (A) for all cities, shall
be determined.
(C) An amount for each city equal to the factor determined
pursuant to subparagraph (B), multiplied by three hundred eighty-two
million five hundred thousand dollars ($382,500,000), shall be
determined.
(D) In no event shall the amount for any city determined pursuant
to subparagraph (C) exceed a per capita amount of nineteen dollars
and thirty-one cents ($19.31), as determined in accordance with that
city's population on January 1, 1993, as estimated by the Department
of Finance.
(E) The amount determined for each city pursuant to subparagraphs
(C) and (D) shall be the amount of property tax revenue to be
subtracted from the amount of property tax revenue deemed allocated
in the prior year.
(3) The Director of Finance shall, by July 15, 1993, report to the
Joint Legislative Budget Committee those amounts determined pursuant
to paragraph (2).
(4) On or before August 15, 1993, the Director of Finance shall
notify each county auditor of the amount of property tax revenue
reduction determined for each city located within that county.
(c) (1) The amount of property tax revenue deemed allocated in the
prior fiscal year to each special district, as defined pursuant to
subdivision (m) of Section 95, shall be reduced by the amount
determined for the district pursuant to paragraph (3) and increased
by the amount determined for the district pursuant to paragraph (4).
The total net amount of these changes is intended to equal two
hundred forty-four million dollars ($244,000,000) in the 1993-94
fiscal year.
(2) (A) Notwithstanding any other provision of this subdivision,
no reduction shall be made pursuant to this subdivision with respect
to any of the following special districts:
(i) A local hospital district as described in Division 23
(commencing with Section 32000) of the Health and Safety Code.
(ii) A water agency that does not sell water at retail, but not
including an agency the primary function of which, as determined on
the basis of total revenues, is flood control.
(iii) A transit district.
(iv) A police protection district formed pursuant to Part 1
(commencing with Section 20000) of Division 14 of the Health and
Safety Code.
(v) A special district that was a multicounty special district as
of July 1, 1979.
(B) Notwithstanding any other provision of this subdivision, the
first one hundred four thousand dollars ($104,000) of the amount of
any reduction that otherwise would be made under this subdivision
with respect to a qualifying community services district shall be
excluded. For purposes of this subparagraph, a "qualifying community
services district" means a community services district that meets
all of the following requirements:
(i) Was formed pursuant to Division 3 (commencing with Section
61000) of Title 6 of the Government Code.
(ii) Succeeded to the duties and properties of a police protection
district upon the dissolution of that district.
(iii) Currently provides police protection services to
substantially the same territory as did that district.
(iv) Is located within a county in which the board of supervisors
has requested the Department of Finance that this subparagraph be
operative in the county.
(3) (A) On or before September 15, 1993, the county auditor shall
determine an amount for each special district equal to the amount of
its allocation determined pursuant to Section 96 or 96.1, and Section
96.5 or their predecessor sections for the 1993-94 fiscal year
multiplied by the ratio determined pursuant to paragraph (1) of
subdivision (a) of former Section 98.6 as that section read on June
15, 1993. In those counties that were subject to former Sections
98.66, 98.67, and 98.68, as those sections read on that same date,
the county auditor shall determine an amount for each special
district that represents the current amount of its allocation
determined pursuant to Section 96 or 96.1, and Section 96.5 or their
predecessor sections for the 1993-94 fiscal year that is attributed
to the property tax shift from schools required by Chapter 282 of the
Statutes of 1979. In that county subject to Section 100.4, the
county auditor shall determine an amount for each special district
that represents the current amount of its allocations determined
pursuant to Section 96, 96.1, 96.5, or 100.4 or their predecessor
sections for the 1993-94 fiscal year that is attributable to the
property tax shift from schools required by Chapter 282 of the
Statutes of 1979. In determining these amounts, the county auditor
shall adjust for the influence of increased assessed valuation within
each district, including the effect of jurisdictional changes, and
the reductions in property tax allocations required in the 1992-93
fiscal year by Chapters 699 and 1369 of the Statutes of 1992. In the
case of a special district that has been consolidated or
reorganized, the auditor shall determine the amount of its current
property tax allocation that is attributable to the prior district's
or districts' receipt of state assistance payments pursuant to
Chapter 282 of the Statutes of 1979. Notwithstanding any other
provision of this paragraph, for a special district that is governed
by a city council or whose governing board has the same membership as
a city council and that is a subsidiary district as defined in
subdivision (e) of Section 16271 of the Government Code, the county
auditor shall multiply the amount that otherwise would be calculated
pursuant to this paragraph by 0.38 and the result shall be used in
the calculations required by paragraph (5). In no event shall the
amount determined by this paragraph be less than zero.
(B) Notwithstanding subparagraph (A), commencing with the 1994-95
fiscal year, in the County of Sacramento, the auditor shall determine
the amount for each special district that represents the current
amount of its allocations determined pursuant to Section 96, 96.1,
96.5, or 100.6 for the 1994-95 fiscal year that is attributed to the
property tax shift from schools required by Chapter 282 of the
Statutes of 1979.
(4) (A) (i) On or before September 15, 1993, the county auditor
shall determine an amount for each special district that is engaged
in fire protection activities, as reported to the Controller for
inclusion in the 1989-90 edition of the Financial Transactions Report
Concerning Special Districts under the heading of "Fire Protection,"
that is equal to the amount of revenue allocated to that special
district from the Special District Augmentation Fund for fire
protection activities in the 1992-93 fiscal year. For purposes of
the preceding sentence for counties of the second class, the phrase
"amount of revenue allocated to that special district" means an
amount of revenue that was identified for transfer to that special
district, rather than the amount of revenue that was actually
received by that special district pursuant to that transfer.
(ii) In the case of a special district, other than a special
district governed by the county board of supervisors or whose
governing body is the same as the county board of supervisors, that
is engaged in fire protection activities as reported to the
Controller, the county auditor shall also determine the amount by
which the district's amount determined pursuant to paragraph (3)
exceeds the amount by which its allocation was reduced by operation
of former Section 98.6 in the 1992-93 fiscal year. This amount shall
be added to the amount otherwise determined for the district under
this paragraph. In any county subject to former Section 98.65,
98.66, 98.67, or 98.68 in that same fiscal year, the county auditor
shall determine for each special district that is engaged in fire
protection activities an amount that is equal to the amount
determined for that district pursuant to paragraph (3).
(B) For purposes of this paragraph, a special district includes
any special district that is allocated property tax revenue pursuant
to this chapter and does not appear in the State Controller's Report
on Financial Transactions Concerning Special Districts, but is
engaged in fire protection activities and appears in the State
Controller's Report on Financial Transactions Concerning Counties.
(5) The total amount of property taxes allocated to special
districts by the county auditor as a result of paragraph (4) shall be
subtracted from the amount of property tax revenues not allocated to
special districts by the county auditor as a result of paragraph (3)
to determine the amount to be deposited in the Education Revenue
Augmentation Fund as specified in subdivision (d).
(6) On or before September 30, 1993, the county auditor shall
notify the Director of Finance of the net amount determined for
special districts pursuant to paragraph (5).
(d) (1) The amount of property tax revenues not allocated to the
county, city and county, cities within the county, and special
districts as a result of the reductions required by subdivisions (a),
(b), and (c) shall instead be deposited in the Educational Revenue
Augmentation Fund established in each county or city and county
pursuant to Section 97.2. The amount of revenue in the Educational
Revenue Augmentation Fund, derived from whatever source, shall be
allocated pursuant to paragraphs (2) and (3) to school districts and
county offices of education, in total, and to community college
districts, in total, in the same proportion that property tax
revenues were distributed to school districts and county offices of
education, in total, and community college districts, in total,
during the 1992-93 fiscal year.
(2) The county auditor shall, based on information provided by the
county superintendent of schools pursuant to this paragraph,
allocate that proportion of the revenue in the Educational Revenue
Augmentation Fund to be allocated to school districts and county
offices of education only to those school districts and county
offices of education within the county that are not excess tax school
entities, as defined in subdivision (n) of Section 95. The county
superintendent of schools shall determine the amount to be allocated
to each school district in inverse proportion to the amounts of
property tax revenue per average daily attendance in each school
district. For each county office of education, the allocation shall
be made based on the historical split of base property tax revenue
between the county office of education and school districts within
the county. In no event shall any additional money be allocated from
the Educational Revenue Augmentation Fund to a school district or
county office of education upon that district or county office of
education becoming an excess tax school entity. If, after
determining the amount to be allocated to each school district and
county office of education, the county superintendent of schools
determines there are still additional funds to be allocated, the
county superintendent of schools shall determine the remainder to be
allocated in inverse proportion to the amounts of property tax
revenue, excluding Educational Revenue Augmentation Fund moneys, per
average daily attendance in each remaining school district, and on
the basis of the historical split described above for each county
office of education that is not an excess tax school entity, until
all funds that would not result in a school district or county office
of education becoming an excess tax school entity are allocated.
The county superintendent of schools may determine the amounts to be
allocated between each school district and county office of education
to ensure that all funds that would not result in a school district
or county office of education becoming an excess tax school entity
are allocated.
(3) The county auditor shall, based on information provided by the
Chancellor of the California Community Colleges pursuant to this
paragraph, allocate that proportion of the revenue in the Educational
Revenue Augmentation Fund to be allocated to community college
districts only to those community college districts within the county
that are not excess tax school entities, as defined in subdivision
(n) of Section 95. The chancellor shall determine the amount to be
allocated to each community college district in inverse proportion to
the amounts of property tax revenue per funded full-time equivalent
student in each community college district. In no event shall any
additional money be allocated from the Educational Revenue
Augmentation Fund to a community college district upon that district
becoming an excess tax school entity.
(4) (A) If, after making the allocation required pursuant to
paragraph (2), the auditor determines that there are still additional
funds to be allocated, the auditor shall allocate those excess funds
pursuant to paragraph (3). If, after making the allocation pursuant
to paragraph (3), the auditor determines that there are still
additional funds to be allocated, the auditor shall allocate those
excess funds pursuant to paragraph (2). If, after determining the
amount to be allocated to each community college district, the
Chancellor of the California Community Colleges determines that there
are still additional funds to be allocated, the Chancellor of the
California Community Colleges shall determine the remainder to be
allocated to each community college district in inverse proportion to
the amounts of property tax revenue, excluding Educational Revenue
Augmentation Fund moneys, per funded full-time equivalent student in
each remaining community college district that is not an excess tax
school entity until all funds that would not result in a community
college district becoming an excess tax school entity are allocated.
(B) (i) For the 1995-96 fiscal year and each fiscal year
thereafter, if, after making the allocations pursuant to paragraphs
(2) and (3) and subparagraph (A), the auditor determines that there
are still additional funds to be allocated, the auditor shall,
subject to clauses (ii) and (iii), allocate those excess funds to the
county superintendent of schools. Funds allocated pursuant to this
clause shall be counted as property tax revenues for special
education programs in augmentation of the amount calculated pursuant
to Section 2572 of the Education Code, to the extent that those
property tax revenues offset state aid for county offices of
education and school districts within the county pursuant to
subdivision (c) of Section 56836.08 of the Education Code. If, for
the 2000-01 fiscal year or any fiscal year thereafter, any additional
revenues remain after the implementation of this clause, the auditor
shall allocate those remaining revenues among the county, cities,
and special districts in proportion to the amounts of ad valorem
property tax revenue otherwise required to be shifted from those
local agencies to the county's Educational Revenue Augmentation Fund
for the relevant fiscal year.
(ii) For the 1995-96 fiscal year only, clause (i) shall have no
application to the County of Mono and the amount allocated pursuant
to clause (i) in the County of Marin shall not exceed five million
dollars ($5,000,000).
(iii) For the 1996-97 fiscal year only, the total amount of funds
allocated by the auditor pursuant to clause (i) and clause (i) of
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2
shall not exceed that portion of two million five hundred thousand
dollars ($2,500,000) that corresponds to the county's proportionate
share of all moneys allocated pursuant to clause (i) and clause (i)
of subparagraph (B) of paragraph (4) of subdivision (d) of Section
97.2 for the 1995-96 fiscal year. Upon the request of the auditor,
the Department of Finance shall provide to the auditor all
information in the department's possession that is necessary for the
auditor to comply with this clause.
(iv) Notwithstanding clause (i) of this subparagraph, for the
1999-2000 fiscal year only, if, after making the allocations pursuant
to paragraphs (2) and (3) and subparagraph (A), the auditor
determines that there are still additional funds to be allocated, the
auditor shall allocate the funds to the county, cities, and special
districts in proportion to the amounts of ad valorem property tax
revenue otherwise required to be shifted from those local agencies to
the county's Educational Revenue Augmentation Fund for the relevant
fiscal year. The amount allocated pursuant to this clause shall not
exceed eight million two hundred thirty-nine thousand dollars
($8,239,000), as appropriated in Item 6110-250-0001 of Section 2.00
of the Budget Act of 1999 (Chapter 50, Statutes of 1999).
(C) For purposes of allocating the Educational Revenue
Augmentation Fund for the 1996-97 fiscal year, the auditor shall,
after making the allocations for special education programs, if any,
required by subparagraph (B), allocate all remaining funds among the
county, cities, and special districts in proportion to the amounts of
ad valorem property tax revenue otherwise required to be shifted
from those local agencies to the county's Educational Revenue
Augmentation Fund for the relevant fiscal year. For purposes of ad
valorem property tax revenue allocations for the 1997-98 fiscal year
and each fiscal year thereafter, no amount of ad valorem property tax
revenue allocated to the county, a city, or a special district
pursuant to this subparagraph shall be deemed to be an amount of ad
valorem property tax revenue allocated to that local agency in the
prior fiscal year.
(5) For purposes of allocations made pursuant to Section 96.1 for
the 1994-95 fiscal year, the amounts allocated from the Educational
Revenue Augmentation Fund pursuant to this subdivision, other than
those amounts deposited in the Educational Revenue Augmentation Fund
pursuant to any provision of the Health and Safety Code, shall be
deemed property tax revenue allocated to the Educational Revenue
Augmentation Fund in the prior fiscal year.
97.31. (a) (1) The Director of Finance shall direct the county
auditor to reduce, in the 1993-94 fiscal year, the amount of the
transfer to the Educational Revenue Augmentation Fund determined
pursuant to subdivision (a) of Section 97.3 for any eligible county
in accordance with subdivision (b) of this section, and also shall
direct the county auditor to reduce, in the 1993-94 fiscal year, the
amount of that transfer for certain counties in accordance with
subdivision (c). The total amount of the reductions for all counties
made for the 1993-94 fiscal year pursuant to subdivision (b) shall
not exceed two million dollars ($2,000,000). For the 1994-95 fiscal
year and each fiscal year thereafter, ad valorem property tax revenue
allocations made pursuant to subdivision (a) of Section 96.1 shall
fully incorporate the adjustments required by this section.
(2) For purposes of this section, an "eligible county" is a county
with a population of less than 350,000, as reported in the 1990
federal census that had a fire element of the tax bill in 1977-78,
that continues to fund some portion of those costs from the county
general fund in 1993-94, and that provides these services in the same
manner as a special district less than countywide and has so
indicated in the Controller's Report on Financial Transactions
Concerning Counties.
(b) (1) For each eligible county, the county auditor may submit
the following information to the Director of Finance not later than
November 1, 1993:
(A) The amount of property tax allocated to the county fire
district in the 1977-78 fiscal year.
(B) The amount allocated from the county budget to the county fire
district in the 1978-79 fiscal year.
(C) The amount of property tax reduction for the county fire
district attributable to the passage of Article XIIIA of the
California Constitution by the voters in the primary election in June
1978.
(D) The amount of money allocated from the county budget to the
county fire district in the 1993-94 fiscal year.
(E) The amount allocated to the county fire district from the
Special District Augmentation Fund in the 1992-93 fiscal year.
(2) For each eligible county that submits to the Director of
Finance by November 1, 1993, the information described in paragraph
(1), the Director of Finance shall make the following calculations:
(A) Multiply the amount of property tax allocated to the county
fire district in the 1977-78 fiscal year by the change in the value
of the property tax base for the county from the 1977-78 fiscal year
to the 1978-79 fiscal year.
(B) Subtract the amount reported pursuant to subparagraph (C) of
paragraph (1) from the amount determined pursuant to subparagraph
(A).
(C) Multiply the amount determined pursuant to subparagraph (B) by
an amount determined by the Director of Finance to be the change in
assessed value for the county from the 1978-79 fiscal year to the
1993-94 fiscal year.
(D) Multiply the amount reported pursuant to subparagraph (E) of
paragraph (1) by 1.038.
(E) Add the amount determined pursuant to subparagraph (C) to the
amount determined pursuant to subparagraph (D).
(F) Subtract the amount determined pursuant to subparagraph (E)
from the amount reported pursuant to subparagraph (D) of paragraph
(1).
(3) The Director of Finance shall determine the sum of all the
amounts determined pursuant to subparagraph (F) of paragraph (2).
(4) If the sum determined pursuant to paragraph (3) is greater
than two million dollars ($2,000,000), then the Director of Finance
shall proportionately reduce the amount for each county so that the
total of the amounts for all counties does not exceed two million
dollars ($2,000,000). If the sum determined pursuant to subdivision
(e) does not exceed two million dollars ($2,000,000), then the
Director of Finance shall not reduce the amount determined for each
county.
(5) The Director of Finance shall by January 15, 1994, notify each
county of its reduction in the amount to be transferred to the
Educational Revenue Augmentation Fund pursuant to subdivision (a) of
Section 97.3. The maximum amount of the reduction that may be
authorized pursuant to this subdivision is one-half the amount
determined pursuant to subparagraph (F) of paragraph (2).
(c) The amount to be transferred from a county to an Educational
Revenue Augmentation Fund pursuant to subdivision (a) of Section 97.3
shall be reduced by one hundred thousand dollars ($100,000) for the
County of Madera and by two hundred thousand dollars ($200,000) for
the County of Tulare.
97.313. (a) Notwithstanding any other provision of this chapter,
for the 1995-96 fiscal year only, the auditor of any qualified county
shall, upon being directed by the board of supervisors, increase the
amount of property tax revenue allocated to that county by an amount
of property tax revenue, not to exceed one million five hundred
fifty thousand dollars ($1,550,000), that is attributable to the
difference between the following amounts:
(1) The amount of the reduction that would have been determined by
the Director of Finance for the qualified county pursuant to
subdivision (b) of Section 97.31 in the absence of the two million
dollar ($2,000,000) limitation of subdivision (a) and paragraph (4)
of subdivision (b) of that section, and the maximum limitation of
paragraph (5) of subdivision (b) of that same section.
(2) The amount of the reduction that was determined by the
Director of Finance for the qualified county pursuant to subdivision
(b) of Section 97.31.
If the board of supervisors directs the auditor, pursuant to this
subdivision, to increase the amount of the property tax revenue
allocation of the county, the board shall also direct the auditor to
commensurately reduce the amount of the property tax revenue
allocation to the Educational Revenue Augmentation Fund. The county
shall expend any additional amount of property tax revenue that it
receives pursuant to this subdivision solely for the purpose of
funding public safety services.
(b) The Director of Finance shall determine for each qualified
county the difference described in subdivision (a), and shall as soon
as reasonably possible after the effective date of the act adding
this section, notify the board of supervisors of each qualified
county in writing of the amount of the difference calculated for that
county.
(c) For purposes of this section, "qualified county" means an
"eligible county," as defined in paragraph (2) of subdivision (a) of
Section 97.31, that was subject to the reduction required by
paragraph (4) of subdivision (b) of that same section.
(d) Except as otherwise required by law, the county auditor of a
qualified county shall allocate property tax revenues for the 1996-97
fiscal year and each fiscal year thereafter in those amounts that
fully reflect, as otherwise required by this chapter, any increases
or reductions in allocations that are directed by the board of
supervisors pursuant to subdivision (a).
97.32. Notwithstanding Section 97.3, a special district does not
include, for purposes of the reductions required by that section, a
memorial district formed pursuant to Article 1 (commencing with
Section 1170) of Chapter 1 of Part 2 of Division 6 of the Military
and Veteran's Code.
97.33. (a) Notwithstanding any other provision of this chapter, for
the 1993-94 fiscal year, the amounts of property tax revenue that
are required to be shifted pursuant to Section 97.3 from a city
described in the second clause of paragraph (2) of subdivision (h) of
Section 95 or a city described in paragraph (2) of subdivision (b)
of Section 16700 of the Welfare and Institutions Code, and from the
county in which those cities are located, to the Educational Relief
Augmentation Fund, shall each be reduced by an amount equal to the
sum of the property tax revenue loss incurred by the city or county
as a result of the Oakland/Berkeley fire that occurred in October
1991. The auditor shall certify to the Department of Finance the
amount of the property tax revenue loss for each city and the county
as a result of those properties that were reassessed as a result of
that fire. The property tax revenue loss shall be the difference
between the property tax revenues, including property tax revenue
attributable to tax rates levied pursuant to subdivision (b) of
Section 1 of Article XIIIA of the California Constitution, that would
have been derived based on the original assessed value of those
properties for the 1991-92 fiscal year prior to any reassessment for
disaster relief, increased by 2 percent, and the property tax
revenues derived from the assessed value of those properties for the
1992-93 fiscal year.
(b) In each of the 1994-95, 1995-96, and 1996-97 fiscal years, for
the county and cities described in subdivision (a), one-third of the
adjustments made pursuant to subdivision (a) for each described city
and the county shall be added to the amount of property tax revenue
deemed allocated to each city and the county in the prior fiscal
year.
97.34. (a) Notwithstanding any other provision of this chapter, the
amount of the revenue reduction resulting from the application of
subdivision (c) of Section 97.2 to an amount equal to the amount of
the water quality control compliance costs of a qualified special
district for the 1992-93 fiscal year shall, for purposes of property
tax revenue allocations for the 1993-94 fiscal year, be added to the
amount of property tax revenue deemed allocated to that district in
the 1992-93 fiscal year. The water quality control compliance costs
of a qualified special district for the relevant fiscal year shall
also be deducted from the amount of property tax revenue subject to
reduction with respect to that district under Section 97.3 for the
1993-94 fiscal year, and under any statute with respect to any
subsequent fiscal year that would reduce the amount of property tax
revenue deemed allocated in the prior fiscal year to that district
for purposes of increasing the amount of property tax revenue to be
allocated to another jurisdiction.
(b) For purposes of this section:
(1) A "qualified special district" means any special district that
is required to comply with Chapter 12 (commencing with Section
13950) of Division 7 of the Water Code.
(2) "Water quality control compliance costs" mean those costs,
including, but not limited to, reserves for nongrowth facility
augmentation and replacement and environmental protection, that are
determined by the county auditor in accordance with subdivision (a)
to have been incurred by a qualified special district in complying
with Chapter 12 (commencing with Section 13950) of Division 7 of the
Water Code.
(c) The auditor may assess each qualified special district its
share of the auditor's actual and reasonable costs of complying with
this section. For purposes of this subdivision, each share of costs
shall be determined in accordance with that district's proportional
share of the total amount of water quality control compliance costs
determined by the auditor for purposes of this section for each
fiscal year.
97.35. Notwithstanding Section 97.3, the amount of property tax
revenues of a community service district that is subject to reduction
pursuant to that section shall not include those property tax
revenues, up to the amount of ninety thousand dollars ($90,000), that
are allocated by that district to "police protection and personal
safety" activities, as indicated in the 1989-90 edition of the State
Controller's Report on the Financial Transactions of Special
Districts in California.
97.36. (a) Notwithstanding any other provision of this chapter, for
the designated fiscal year, the amount of the revenue allocation
reduction with respect to a qualified county that is attributable in
that fiscal year to the reduction determined for that county for the
1993-94 fiscal year pursuant to paragraph (1) of subdivision (a) of
Section 97.3 or its predecessor section shall be reduced by the
amount of any increased revenues, allocated in the designated fiscal
year in that county to a "qualifying school entity" as defined in
paragraph (5) of subdivision (a) of Section 97.3 or its predecessor
section, that would not have been so allocated but for that county
being a qualified county.
(b) For purposes of this section:
(1) A "qualified county" means a county or city or county that has
first implemented for the 1994-95 or any subsequent fiscal year the
alternative procedure for the distribution of property tax levies
that is authorized by Chapter 2 (commencing with Section 4701) of
Part 8.
(2) For purposes of this section,"designated fiscal year" means
the fiscal year in which the relevant qualified county first
implemented the alternative method for the distribution of property
tax levies that is authorized by Chapter 2 (commencing with Section
4701) of Part 8.
97.361. Any reduction amount determined for a county pursuant to
subdivision (a) of Section 97.36 that is not applied to the benefit
of that county in that county's designated fiscal year, as defined in
Section 97.36, may not be so applied in a later fiscal year,
regardless of any increase in the amount of revenues allocated in
that county to qualifying school entities as a result of the county's
adoption of the alternate procedure for the distribution of property
tax levies authorized by Chapter 2 (commencing with Section 4701) of
Part 8.
97.37. (a) Notwithstanding any other provision of this chapter, for
the 1994-95 fiscal year and each fiscal year thereafter, the amount
of property tax revenue deemed allocated in the prior fiscal year to
a county free library system, or a library established as an
independent special district, shall not be reduced for purposes of
increasing the amount of property tax revenue to be allocated to
another jurisdiction. This section does not apply to any adjustments
in property tax allocations made pursuant to Section 19116 of the
Education Code.
(b) (1) This section shall not be construed to preclude
allocations of ad valorem property tax revenue to a county's
Educational Revenue Augmentation Fund, rather than to a county free
library system or a library established as an independent special
district, that are required by the application to a library system or
library district, as so described, of Sections 97.2 and 97.3. The
Legislature finds and declares that this paragraph does not
constitute a change in, but is declaratory of, existing law.
(2) This section does not apply to any adjustments in property tax
allocations made pursuant to Section 19116 of the Education Code.
(c) (1) Notwithstanding any other provision of this chapter, for
those county free library systems from which the auditor had not
shifted ad valorem property tax revenue to an Education Revenue
Augmentation Fund as of January 1, 1996, all of the following shall
apply:
(A) No allocation of ad valorem property tax revenue to a county's
Educational Revenue Augmentation Fund shall be required from a
county free library system that did not levy a property tax rate
separate from the property tax rate of the county for the 1975-76,
1976-77, and 1977-78 fiscal years, was not entitled to an allocation
of property tax revenue for the 1978-79 and 1979-80 fiscal years, and
did not receive state assistance payments pursuant to Section 16260,
26912, or 26912.1 of the Government Code.
(B) No allocation of ad valorem property tax revenue to a county's
Educational Revenue Augmentation Fund shall be required from a
county free library system that, for the 1977-78 fiscal year, was
organized as a joint powers agency pursuant to Chapter 5 (commencing
with Section 6500) of Division 7 of Title 1 of the Government Code.
(C) A county free library system established pursuant to Article 1
(commencing with Section 19100) of Chapter 6 of Part 11 of Division
1 of Title 1 of the Education Code, for which a separate property tax
rate was levied in the 1977-78 fiscal year, shall be considered a
special district. However, any county free library system that was
not actually allocated property tax revenues pursuant to this chapter
for the 1992-93 fiscal year and any portion of the 1993-94 fiscal
year shall not be considered a special district for any purpose in
the 1992-93 fiscal year and that portion of the 1993-94 fiscal year
for which those revenues were not allocated.
(2) The Legislature finds and declares that this subdivision does
not constitute a change in, but is declaratory of, existing law.
97.38. Notwithstanding any contrary provision in paragraph (4) of
subdivision (d) of Section 97.3 , for the County of Marin ,
commencing with the 1993-94 fiscal year, and for the County of Mono,
commencing with the 1994-95 fiscal year, if, after making the
allocations pursuant to paragraph (2) of subdivision (d) of Section
97.3 as required by subparagraph (A) of paragraph (4) of subdivision
(d) of Section 97.3 and after making the allocation pursuant to
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3,
the auditor determines that each community college district located
entirely within that county is an excess school tax entity as defined
in subdivision (n) of Section 95, the auditor shall then apply any
remaining funds to decrease the amounts of those reductions
calculated pursuant to Section 97.3 with respect to the county,
cities, and special districts in proportion to the amount of the
reduction otherwise calculated under Section 97.3 for each of those
agencies.
97.39. (a) Notwithstanding any other provision of law, the amount
of each allocation that was made to the Educational Revenue
Augmentation Fund of the County of Santa Clara in any fiscal year, up
to and including the 1996-97 fiscal year, as the result of a
reduction amount calculated pursuant to Section 97.2 or 97.3 for the
Los Altos County Fire Protection District, the Santa Clara County
Central Fire Protection District, the Saratoga Fire Protection
District, or the South Santa Clara County Fire District, shall be
deemed correct.
(b) No reduction or correction may be made, in response to a
calculation error, to an allocation that was made to the Educational
Revenue Augmentation Fund of the County of Santa Clara in any fiscal
year, up to and including the 1996-97 fiscal year, as the result of a
reduction amount calculated pursuant to Section 97.2 or 97.3 for a
County of Santa Clara fire district listed in subdivision (a).
However, in the 1997-98 fiscal year and each fiscal year thereafter,
each allocation that is made to the Educational Revenue Augmentation
Fund of the County of Santa Clara as the result of a reduction amount
calculated pursuant to Section 97.2 or 97.3 for a County of Santa
Clara fire district listed in subdivision (a) shall be made in that
amount that fully reflects any reduction or correction that would be
required to be made to a corresponding allocation in a prior fiscal
year in the absence of this section.
97.4. (a) Notwithstanding Section 97.2 or 97.3 or any other
provision of this chapter, in implementing the changes in allocations
of property tax revenues required by Sections 97, 97.1, 97.2, and
97.3, the county auditor may elect to determine and give effect to
the changes in allocations of property tax revenues required by
Sections 97, 97.1, 97.2, and 97.3 on a countywide, rather than tax
rate area, basis. If the county auditor so elects, he or she shall
ensure adequate recognition of year-to-year revenue growth so that
the results of changes implemented on a countywide basis do not
differ materially from the results which would be obtained from the
use of a tax rate area basis.
(b) (1) Notwithstanding any other provision of law, for the
1992-93 fiscal year and each fiscal year thereafter, in any county in
which property tax increment revenues are allocated to a
redevelopment agency pursuant to Section 33670 of the Health and
Safety Code, the county auditor shall deposit in the Educational
Revenue Augmentation Fund an amount that is equal to the total amount
of revenues that would be so deposited pursuant to Sections 97,
97.1, 97.2, and 97.3 if no reduction were made in that amount of
revenues for purposes of allocations to a redevelopment agency
pursuant to Section 33670 of the Health and Safety Code. Those
revenues deposited in the Educational Revenue Augmentation Fund in
accordance with this paragraph shall be allocated or transferred only
to school districts, county offices of education, or community
college districts, in accordance with subdivision (d) of either
Section 97.2 or 97.3.
(2) The deposit of property tax revenue in the Educational Revenue
Augmentation Fund in accordance with paragraph (1) shall not reduce
or otherwise affect the amount of property tax revenue to be
allocated to a redevelopment agency pursuant to subdivision (b) of
Section 33670 of the Health and Safety Code, and any additional
amount required to be allocated to the Educational Revenue
Augmentation Fund pursuant to paragraph (1) shall be deducted from
those amounts allocated to the county, cities, and special districts
with respect to each tax rate area in which property tax increment
revenues are allocated to a redevelopment agency. These reductions
shall be made in proportion to the total amount of the reductions
required with respect to the county and each city and special
district in each of these redevelopment agency tax rate areas under
Sections 97, 97.1, 97.2, and 97.3.
(3) This subdivision shall not require the modification of any
property tax revenue allocation that was made by the county auditor
for the 1992-93 fiscal year in a manner inconsistent with paragraph
(1) or (2), if that allocation was implemented on or before June 30,
1993. However, property tax revenue allocations made in the 1993-94
fiscal year and any fiscal year thereafter shall be determined by the
county auditor as if the allocations made for the 1992-93 fiscal
year had been made in a manner consistent with paragraph (1).
97.41. (a) (1) Notwithstanding any other provision of this article,
commencing with the 1995-96 fiscal year, the auditor shall allocate
property tax revenue to a qualifying county service area, as defined
in subdivision (b), in those amounts that would be determined if the
amount of the reduction calculated for that county service area
pursuant to subdivision (c) of Section 97.3 had been decreased by an
amount that is equal to that fraction specified in paragraph (2) of
the amount of revenue allocated to that county service area from the
county's Special District Augmentation Fund for police protection
activities in the 1992-93 fiscal year.
(2) For purposes of implementing paragraph (1), the applicable
fractions are as follows:
(A) For the 1995-96 fiscal year, one-third.
(B) For the 1996-97 fiscal year, two-thirds.
(C) For the 1997-98 fiscal year and each fiscal year thereafter,
the entire amount.
(b) For purposes of this section, "qualifying county service area"
means a county service area that was formed prior to July 1, 1994,
pursuant to the County Service Area Law (Chapter 2.2 (commencing with
Section 25210.1) of Part 2 of Division 2 of Title 3 of the
Government Code) and that is either of the following:
(1) A county service area, the governing board of which is the
board of supervisors, that is engaged in police protection
activities, as reported to the Controller for inclusion in the
1989-90 Edition of the Financial Transactions Report Concerning
Special Districts under the heading of "Police Protection and Public
Safety."
(2) A county service area, the sole purpose of which is to engage
in police protection activities.
97.44. (a) Notwithstanding any other provision of this article, in
the County of San Luis Obispo, commencing with ad valorem property
tax revenue allocations for the 1995-96 fiscal year, the auditor
shall, subject to subdivision (b), do both of the following:
(1) Allocate to the County of San Luis Obispo, from those revenues
that are otherwise required to be allocated to the county's
Educational Revenue Augmentation Fund (ERAF), that amount of ad
valorem property tax revenue that is attributable in the relevant
fiscal year to three million seven hundred fifty thousand dollars
($3,750,000) of ad valorem property tax revenue derived for the
1993-94 fiscal year from the taxation of property assessed by the
County of San Luis Obispo for that fiscal year.
(2) Transfer from the county to that county's ERAF that amount of
revenue, otherwise to be allocated to the county pursuant to Section
100, that is attributable in the relevant fiscal year to three
million seven hundred fifty thousand dollars ($3,750,000) of ad
valorem property tax revenue derived for the 1993-94 fiscal year with
respect to the County of San Luis Obispo from the taxation of
property assessed by the State Board of Equalization.
(b) The allocations and transfers of revenue required by
subdivision (a) are modifications of, and shall not be construed to
be substitutions for, the allocation of property tax revenues as
otherwise required by this chapter.
97.45. Notwithstanding subdivision (d) of Section 97.2 and
subdivision (d) of Section 97.3, the amount deposited in the
Educational Revenue Augmentation Fund pursuant to Section 33681.9 of
the Health and Safety Code, if that section is added by Senate Bill
1045 of the 2003-04 Regular Session, shall be allocated as follows:
(a) To county offices, the amount that would be allocated pursuant
to paragraph (1) of subdivision (d) of Section 97.2 and paragraph
(1) of subdivision (d) of Section 97.3 multiplied by 1.85185.
(b) To community colleges, the amount that would be allocated
pursuant to paragraph (1) of subdivision (d) of Section 97.2 and
paragraph (1) of subdivision (d) of Section 97.3 multiplied by
1.85185.
(c) To school districts the remainder after the allocations made
in subdivisions (a) and (b).
97.46. Notwithstanding subdivision (d) of Section 97.2 and
subdivision (d) of Section 97.3, the revenue deposited in the
Educational Revenue Augmentation Fund pursuant to Section 33681.9 of
the Health and Safety Code shall be allocated as follows:
(a) To county offices of education, the amount of those revenues
that would be allocated pursuant to paragraph (1) of subdivision (d)
of Section 97.2 and paragraph (1) of subdivision (d) of Section 97.3
multiplied by 1.85185.
(b) To community college districts, the amount of those revenues
that would be allocated pursuant to paragraph (1) of subdivision (d)
of Section 97.2 and paragraph (1) of subdivision (d) of Section 97.3
multiplied by 1.85185.
(c) To school districts the remainder after the allocations made
in subdivisions (a) and (b).
97.68. Notwithstanding any other provision of law, in allocating ad
valorem property tax revenue allocations for each fiscal year during
the fiscal adjustment period, all of the following apply:
(a) (1) The total amount of ad valorem property tax revenue
otherwise required to be allocated to a county's Educational Revenue
Augmentation Fund shall be reduced by the countywide adjustment
amount.
(2) The countywide adjustment amount shall be deposited in a Sales
and Use Tax Compensation Fund that shall be established in the
treasury of each county.
(b) For purposes of this section, the following definitions apply:
(1) "Fiscal adjustment period" means the period beginning with the
2004-05 fiscal year and continuing through the fiscal year in which
the Director of Finance notifies the State Board of Equalization
pursuant to subdivision (b) of Section 99006 of the Government Code.
(2) Except as otherwise provided in subdivision (d), the
"countywide adjustment amount" means the combined total revenue loss
of the county and each city in the county that is annually estimated
by the Director of Finance, based upon the actual amount of sales and
use tax revenues transmitted under Section 7204 in that county in
the prior fiscal year and any projected growth on that amount for the
current fiscal year as determined by the State Board of Equalization
and reported to the director on or before August 15 of each fiscal
year during the fiscal adjustment period, to result for each of those
fiscal years from the 0.25 percent reduction in local sales and use
rate tax authority applied by Section 7203.1. The director shall
adjust the estimates described in this paragraph if the board reports
to him or her any changes in the projected growth in local sales and
use tax revenues for the current fiscal year.
(3) "In lieu local sales and use tax revenues" means those
revenues that are transferred under this section to a county or a
city from a Sales and Use Tax Compensation Fund or an Educational
Revenue Augmentation Fund.
(c) Except as otherwise provided in subdivision (d), for each
fiscal year during the fiscal adjustment period, in lieu sales and
use tax revenues in the Sales and Use Tax Compensation Fund shall be
allocated among the county and the cities in the county, and those
allocations shall be subsequently adjusted, as follows:
(1) The Director of Finance shall, on or before September 1 of
each fiscal year during the fiscal adjustment period, notify each
county auditor of that portion of the countywide adjustment amount
for that fiscal year that is attributable to the county and to each
city within that county.
(2) The county auditor shall allocate revenues in the Sales and
Use Tax Compensation Fund among the county and cities in the county
in the amounts described in paragraph (1). The auditor shall
allocate one-half of the amount described in paragraph (1) in each
January during the fiscal adjustment period and shall allocate the
balance of that amount in each May during the fiscal adjustment
period.
(3) After the end of each fiscal year during the fiscal adjustment
period, other than a fiscal year subject to subdivision (d), the
Director of Finance shall, based on the actual amount of sales and
use tax revenues that were not transmitted for the prior fiscal year,
recalculate each amount estimated under paragraph (1) and notify the
county auditor of the recalculated amount.
(4) If the amount recalculated under paragraph (3) for the county
or any city in the county is greater than the amount allocated to
that local agency under paragraph (2), the county auditor shall, in
the fiscal year next following the fiscal year for which the
allocation was made, transfer an amount of ad valorem property tax
revenue equal to this difference from the Sales and Use Tax
Compensation Fund to that local agency.
(5) If the amount recalculated under paragraph (3) for the county
or any city in the county is less than the amount allocated to that
local agency under paragraph (2), the county auditor shall, in the
fiscal year next following the fiscal year for which the allocation
was made, reduce the total amount of ad valorem property tax revenue
otherwise allocated to that city or county from the Sales and Use Tax
Compensation Fund by an amount equal to this difference and instead
allocate this difference to the county Educational Revenue
Augmentation Fund.
(6) If there is an insufficient amount of moneys in a county's
Sales and Use Tax Compensation Fund to make the transfers required by
paragraph (4), the county auditor shall transfer from the county
Educational Revenue Augmentation Fund an amount sufficient to make
the full amount of these transfers.
(d) Notwithstanding any other provision of this section, when
Section 7203.1 ceases to be operative , all of the following apply:
(1) If Section 7203.1 ceases to be operative on an October 1 of a
fiscal year during the fiscal adjustment period, all of the following
apply:
(A) The "countywide adjustment amount" for that fiscal year means
an amount equal to sum of the following two amounts:
(i) The combined total revenue loss of the county and each city in
the county that is estimated by the director, based upon actual
sales and use tax revenues transmitted under Section 7204 for the
first quarter of the prior fiscal year as determined by the State
Board of Equalization and reported to the director on or before that
August 15, to result for the first quarter of the current fiscal year
from the 0.25 percent reduction in local sales and use tax rate
authority applied by Section 7203.1.
(ii) The difference between the following two amounts:
(I) The total amount that was allocated to the county and each
city in the county under subdivision (c) for the prior fiscal year.
(II) The actual total amount of local sales and use tax revenue
that was not transmitted the county or city and county and each city
in the county for the prior fiscal year as a result of the 0.25
percent suspension of local sales and use tax authority applied by
Section 7203.1.
(B) On or before January 31 of that fiscal year, the auditor shall
allocate to the county and each city in the county that portion of
the countywide adjustment amount for that fiscal year that is
attributable to the county and each city in the county.
(C) On or before May 1 of that fiscal year, the State Board of
Equalization shall report to the director the actual total amount of
local sales and use tax revenue that was not transmitted to the
county and each city in the county in that fiscal year as a result of
the 0.25 percent suspension of local sales and use tax authority
applied by Section 7203.1. On or before May 1 of that fiscal year,
the director shall do both of the following:
(i) Determine the difference between the following two amounts:
(I) The amount specified in clause (i) of subparagraph (A) that
was allocated to the county and each city in the county for that
fiscal year under subparagraph (B).
(II) The actual total amount of local sales and use tax revenue
that was not transmitted to the county and each city in the county
for that fiscal year as a result of the 0.25 percent suspension of
local sales and use tax authority applied by Section 7203.1.
(ii) Notify the auditor of each county of the amounts determined
under clause (i) for his or her county and all of the cities in that
county.
(D) (i) If, for any county or city, the amount described in
subclause (I) of clause (i) of subparagraph (C) is greater than the
amount described in subclause (II) of clause (i) of subparagraph (C),
the county auditor shall, on or before May 31 of that fiscal year,
reallocate from the entity to the county Educational Revenue
Augmentation Fund the difference between those amounts.
(ii) If, for any county or city, the amount described in subclause
(I) of clause (i) of subparagraph (C) is less than the amount
described in subclause (II) of clause (i) of subparagraph (C), the
county auditor shall, on or before May 31 of that fiscal year,
reallocate from the county Educational Revenue Augmentation Fund to
that entity the difference between those amounts.
(2) If Section 7203.1 ceases to be operative on a January 1 of a
fiscal year during the fiscal adjustment period, all of the following
apply:
(A) The "countywide adjustment amount" for that fiscal year means
an amount equal to the sum of the following two amounts:
(i) The combined total revenue loss of the county and each city in
the county that is estimated by the director, based upon actual
sales and use tax revenues transmitted under Section 7204 for the
first and second quarters of the prior fiscal year as determined by
the State Board of Equalization and reported to the director on or
before that August 15, to result for the first and second quarters of
that fiscal year from the 0.25 percent reduction in local sales and
use tax rate authority applied by Section 7203.1.
(ii) The difference between the following two amounts:
(I) The total amount that was allocated to the county and each
city in the county under subdivision (c) for the prior fiscal year.
(II) The actual total amount of local sales and use tax revenue
that was not transmitted the county or city and county and each city
in the county for the prior fiscal year as a result of the 0.25
percent suspension of local sales and use tax authority applied by
Section 7203.1.
(B) The auditor shall allocate to the county and each city in the
county that portion of the countywide adjustment amount for that
fiscal year that is attributable to the county and each city in the
county. One-half of this amount shall be allocated on or before
January 31 of that fiscal year and the other one-half of that amount
shall be allocated on or before May 31 of that fiscal year.
(C) On or before June 30 of that fiscal year, the State Board of
Equalization shall report to the director the actual total amount of
local sales and use tax revenue that was not transmitted to the
county and each city in the county for that fiscal year as a result
of the 0.25 percent suspension of local sales and use tax authority
applied by Section 7203.1. On or before June 30 of that fiscal year,
the director shall do both of the following:
(i) Determine the difference between the following two amounts:
(I) The amount specified in clause (i) of subparagraph (A) that
was allocated to the county and each city in the county for that
fiscal year under subparagraph (B).
(II) The actual total amount of local sales and use tax revenue
that was not transmitted to the county and each city in the county
for that fiscal year as a result of the 0.25 percent suspension of
local sales and use tax authority applied by Section 7203.1.
(ii) Notify the auditor of each county of the amounts determined
under clause (i) for his or her county and all of the cities in that
county.
(D) (i) If, for any county or city, the amount described in
subclause (I) of clause (i) of subparagraph (C) is greater than the
amount described in subclause (II) of clause (i) of subparagraph (C),
the county auditor shall, on or before January 31 of the following
fiscal year, reallocate from the entity to the county Educational
Revenue Augmentation Fund the difference between those amounts.
(ii) If, for any county or city, the amount described in subclause
(I) of clause (i) of subparagraph (C) is less than the amount
described in subclause (II) of clause (i) of subparagraph (C), the
county auditor shall, on or before January 31 of the following fiscal
year, reallocate from the county Educational Revenue Augmentation
Fund to that entity the difference between those amounts.
(3) If Section 7203.1 ceases to be operative on an April 1 of a
fiscal year during the fiscal adjustment period, all of the following
apply:
(A) On or before May 1 of that fiscal year, the director shall
determine and report to the auditor of each county that portion of
the countywide adjustment amount that is attributable to the
estimated sales and use tax revenue losses, resulting from the rate
suspension applied by Section 7203.1, for the fourth quarter of that
fiscal year for the county and each city in the county.
(B) The auditor shall reduce the total amount that is otherwise
required to be allocated in May of that fiscal year from the county
Sales and Use Tax Compensation Fund to the county and each city in
the county by the amount reported by the director with respect to
that entity under subparagraph (A). After the May allocations have
been made, the auditor shall transfer any moneys remaining in the
county Sales and Use Tax Compensation Fund to the county Educational
Revenue Augmentation Fund.
(C) On or before January 1 of the next fiscal year, the State
Board of Equalization shall report to the director the actual total
amount of local sales and use tax revenue that was not transmitted to
the county and each city in the county for the prior fiscal year as
a result of the 0.25 percent suspension of local sales and use tax
authority applied by Section 7203.1. On or before January 1 of that
fiscal year, the director shall do both of the following:
(i) Determine the difference between the following two amounts:
(I) The total amount that was allocated to the county and each
city in the county for the prior fiscal year under subdivision (c),
as adjusted under subparagraph (B).
(II) The actual total amount of local sales and use tax revenue
that was not transmitted to the county and each city in the county
for the prior fiscal year as a result of the 0.25 percent suspension
of local sales and use tax authority applied by Section 7203.1.
(ii) Notify the auditor of each county of the amounts determined
under clause (i) for his or her county and all of the cities in that
county.
(D) (i) If, for any county or city, the amount described in
subclause (I) of clause (i) of subparagraph (C) is greater than the
amount described in subclause (II) of clause (i) of subparagraph (C),
the county auditor shall, on or before January 31 of that fiscal
year, reallocate from the entity to the county Educational Revenue
Augmentation Fund the difference between those amounts.
(ii) If, for any county or city, the amount described in subclause
(I) of clause (i) of subparagraph (C) is less than the amount
described in subclause (II) of clause (i) of subparagraph (C), the
county auditor shall, on or before January 31 of the following fiscal
year, reallocate from the county Educational Revenue Augmentation
Fund to that entity the difference between those amounts.
(4) If Section 7203.1 ceases to be operative on a July 1, all of
the following apply:
(A) On or before January 1 of that fiscal year, the State Board of
Equalization shall notify the Director of Finance of the actual
total amount of local sales and use tax revenue that was not
transmitted to each county and city for the prior fiscal year as a
result of the 0.25 percent suspension of local sales and use tax
authority applied by Section 7203.1.
(B) On or before January 31 of that fiscal year, the director
shall do both of the following:
(i) Determine for each city, county, and city and county, the
difference between the following two amounts:
(I) The total amount that was allocated to that entity under
subdivision (c) for the prior fiscal year.
(II) The actual total amount of local sales and use tax revenue
that was not transmitted to the entity for the prior fiscal year as a
result of the 0.25 percent suspension of local sales and use tax
authority applied by Section 7203.1.
(ii) Notify the auditor of each county of the amounts determined
under clause (i) for his or her county and all of the cities in that
county.
(C) (i) If, for any county or city, the amount described in
subclause (I) of clause (i) of subparagraph (B) is greater than the
amount described in subclause (II) of clause (i) of subparagraph (B),
the county auditor shall, on or before January 31 of that fiscal
year, reallocate from the entity to the county Educational Revenue
Augmentation Fund the difference between those amounts.
(ii) If, for any county or city, the amount described in subclause
(I) of clause (i) of subparagraph (B) is less than the amount
described in subclause (II) of clause (i) of subparagraph (B), the
county auditor shall, on or before January 31 of the following fiscal
year, reallocate from the county Educational Revenue Augmentation
Fund to that entity the difference between those amounts.
(e) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, may not reflect any portion of any
property tax revenue allocation required by this section for a
preceding fiscal year.
(f) This section may not be construed to do any of the following:
(1) Reduce any allocations of excess, additional, or remaining
funds that would otherwise have been allocated to cities, counties,
cities and counties, or special districts pursuant to clause (i) of
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2,
clause (i) of subparagraph (B) of paragraph (4) of subdivision (d)
of Section 97.3, or Article 4 (commencing with Section 98), had this
section not been enacted. The allocation made pursuant to
subdivisions (a) and (c) shall be adjusted to comply with this
paragraph.
(2) Require an increased ad valorem property tax revenue
allocation to a community redevelopment agency.
(3) Alter the manner in which ad valorem property tax revenue
growth from fiscal year to fiscal year is determined or allocated in
a county.
(g) Existing tax exchange or revenue sharing agreements, entered
into prior to the operative date of this section, between local
agencies or between local agencies and nonlocal agencies shall be
deemed to be temporarily modified to account for the reduced sales
and use tax revenues, resulting from the temporary reduction in the
local sales and use tax rate, with those reduced revenues to be
replaced in kind by property tax revenue from a Sales and Use Tax
Compensation Fund or an Educational Revenue Augmentation Fund, on a
temporary basis, as provided by this section.
97.70. Notwithstanding any other provision of law, for the 2004-05
fiscal year and for each fiscal year thereafter, all of the following
apply:
(a) (1) (A) The auditor shall reduce the total amount of ad
valorem property tax revenue that is otherwise required to be
allocated to a county's Educational Revenue Augmentation Fund by the
countywide vehicle license fee adjustment amount.
(B) If, for the fiscal year, after complying with Section 97.68
there is not enough ad valorem property tax revenue that is otherwise
required to be allocated to a county Educational Revenue
Augmentation Fund for the auditor to complete the allocation
reduction required by subparagraph (A), the auditor shall
additionally reduce the total amount of ad valorem property tax
revenue that is otherwise required to be allocated to all school
districts and community college districts in the county for that
fiscal year by an amount equal to the difference between the
countywide vehicle license fee adjustment amount and the amount of ad
valorem property tax revenue that is otherwise required to be
allocated to the county Educational Revenue Augmentation Fund for
that fiscal year. This reduction for each school district and
community college district in the county shall be the percentage
share of the total reduction that is equal to the proportion that the
total amount of ad valorem property tax revenue that is otherwise
required to be allocated to the school district or community college
district bears to the total amount of ad valorem property tax revenue
that is otherwise required to be allocated to all school districts
and community college districts in a county. For purposes of this
subparagraph, "school districts" and "community college districts" do
not include any districts that are excess tax school entities, as
defined in Section 95.
(2) The countywide vehicle license fee adjustment amount shall be
allocated to the Vehicle License Fee Property Tax Compensation Fund
that shall be established in the treasury of each county.
(b) (1) The auditor shall allocate moneys in the Vehicle License
Fee Property Tax Compensation Fund according to the following:
(A) Each city in the county shall receive its vehicle license fee
adjustment amount.
(B) Each county and city and county shall receive its vehicle
license fee adjustment amount.
(2) The auditor shall allocate one-half of the amount specified in
paragraph (1) on or before January 31 of each fiscal year, and the
other one-half on or before May 31 of each fiscal year.
(c) For purposes of this section, all of the following apply:
(1) "Vehicle license fee adjustment amount" for a particular city,
county, or a city and county means, subject to an adjustment under
paragraph (2) and Section 97.71, all of the following:
(A) For the 2004-05 fiscal year, an amount equal to the difference
between the following two amounts:
(i) The estimated total amount of revenue that would have been
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund, including any amounts that would have
been certified to the Controller by the auditor of the County of
Ventura under subdivision (j) of Section 98.02, as that section read
on January 1, 2004, for distribution under the law as it read on
January 1, 2004, to the county, city and county, or city for the
2004-05 fiscal year if the fee otherwise due under the Vehicle
License Fee Law (Pt. 5 (commencing with Section 10701) of Div. 2) was
2 percent of the market value of a vehicle, as specified in Section
10752 and 10752.1 as those sections read on January 1, 2004.
(ii) The estimated total amount of revenue that is required to be
distributed from the Motor Vehicle License Fee Account in the
Transportation Tax Fund to the county, city and county, and each city
in the county for the 2004-05 fiscal year under Section 11005, as
that section read on the operative date of the act that amended this
clause.
(B) (i) Subject to an adjustment under clause (ii), for the
2005-06 fiscal year, the sum of the following two amounts:
(I) The difference between the following two amounts:
(Ia) The actual total amount of revenue that would have been
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund, including any amounts that would have
been certified to the Controller by the auditor of the County of
Ventura under subdivision (j) of Section 98.02, as that section read
on January 1, 2004, for distribution under the law as it read on
January 1, 2004, to the county, city and county, or city for the
2004-05 fiscal year if the fee otherwise due under the Vehicle
License Fee Law (Part 5 (commencing with Section 10701) of Division
2) was 2 percent of the market value of a vehicle, as specified in
Sections 10752 and 10752.1 as those sections read on January 1, 2004.
(Ib) The actual total amount of revenue that was distributed from
the Motor Vehicle License Fee Account in the Transportation Tax Fund
to the county, city and county, and each city in the county for the
2004-05 fiscal year under Section 11005, as that section read on the
operative date of the act that amended this sub-subclause.
(II) The product of the following two amounts:
(IIa) The amount described in subclause (I).
(IIb) The percentage change from the prior fiscal year to the
current fiscal year in gross taxable assessed valuation within the
jurisdiction of the entity, as reflected in the equalized assessment
roll for those fiscal years. For the first fiscal year for which a
change in a city's jurisdictional boundaries first applies, the
percentage change in gross taxable assessed valuation from the prior
fiscal year to the current fiscal year shall be calculated solely on
the basis of the city's previous jurisdictional boundaries, without
regard to the change in that city's jurisdictional boundaries. For
each following fiscal year, the percentage change in gross taxable
assessed valuation from the prior fiscal year to the current fiscal
year shall be calculated on the basis of the city's current
jurisdictional boundaries.
(ii) The amount described in clause (i) shall be adjusted as
follows:
(I) If the amount described in subclause (I) of clause (i) for a
particular city, county, or city and county is greater than the
amount described in subparagraph (A) for that city, county, or city
and county, the amount described in clause (i) shall be increased by
an amount equal to this difference.
(II) If the amount described in subclause (I) of clause (i) for a
particular city, county, or city and county is less than the amount
described in subparagraph (A) for that city, county, or city and
county, the amount described in clause (i) shall be decreased by an
amount equal to this difference.
(C) For the 2006-07 fiscal year and for each fiscal year
thereafter, the sum of the following two amounts:
(i) The vehicle license fee adjustment amount for the prior fiscal
year, if Section 97.71 and clause (ii) of subparagraph (B) did not
apply for that fiscal year, for that city, county, and city and
county.
(ii) The product of the following two amounts:
(I) The amount described in clause (i).
(II) The percentage change from the prior fiscal year to the
current fiscal year in gross taxable assessed valuation within the
jurisdiction of the entity, as reflected in the equalized assessment
roll for those fiscal years. For the first fiscal year for which a
change in a city's jurisdictional boundaries first applies, the
percentage change in gross taxable assessed valuation from the prior
fiscal year to the current fiscal year shall be calculated solely on
the basis of the city's previous jurisdictional boundaries, without
regard to the change in that city's jurisdictional boundaries. For
each following fiscal year, the percentage change in gross taxable
assessed valuation from the prior fiscal year to the current fiscal
year shall be calculated on the basis of the city's current
jurisdictional boundaries.
(2) "Countywide vehicle license fee adjustment amount" means, for
any fiscal year, the total sum of the amounts described in paragraph
(1) for a county or city and county, and each city in the county.
(3) On or before June 30 of each fiscal year, the auditor shall
report to the Controller the vehicle license fee adjustment amount
for the county and each city in the county for that fiscal year.
(d) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, shall not reflect, for a preceding
fiscal year, any portion of any allocation required by this section.
(e) For purposes of Section 15 of Article XI of the California
Constitution, the allocations from a Vehicle License Fee Property Tax
Compensation Fund constitute successor taxes that are otherwise
required to be allocated to counties and cities, and as successor
taxes, the obligation to make those transfers as required by this
section shall not be extinguished nor disregarded in any manner that
adversely affects the security of, or the ability of, a county or
city to pay the principal and interest on any debts or obligations
that were funded or secured by that city's or county's allocated
share of motor vehicle license fee revenues.
(f) This section shall not be construed to do any of the
following:
(1) Reduce any allocations of excess, additional, or remaining
funds that would otherwise have been allocated to county
superintendents of schools, cities, counties, and cities and counties
pursuant to clause (i) of subparagraph (B) of paragraph (4) of
subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
with Section 98) had this section not been enacted. The allocations
required by this section shall be adjusted to comply with this
paragraph.
(2) Require an increased ad valorem property tax revenue
allocation or increased tax increment allocation to a community
redevelopment agency.
(3) Alter the manner in which ad valorem property tax revenue
growth from fiscal year to fiscal year is otherwise determined or
allocated in a county.
(4) Reduce ad valorem property tax revenue allocations required
under Article 4 (commencing with Section 98).
(g) Tax exchange or revenue sharing agreements, entered into prior
to the operative date of this section, between local agencies or
between local agencies and nonlocal agencies are deemed to be
modified to account for the reduced vehicle license fee revenues
resulting from the act that added this section. These agreements are
modified in that these reduced revenues are, in kind and in lieu
thereof, replaced with ad valorem property tax revenue from a Vehicle
License Fee Property Tax Compensation Fund or an Educational Revenue
Augmentation Fund.
97.71. Notwithstanding any other provision of law, for each of the
2004-05 and 2005-06 fiscal years, all of the following apply:
(a) (1) The total amount of revenue required to be allocated to
each county and each city and county under Section 97.70 shall be
reduced by the dollar amount indicated as follows:
Property
Tax Reduction
per County
Alameda ....................... $ 14,993,115
Alpine ........................ 13,578
Amador ........................ 341,856
Butte ......................... 1,968,640
Calaveras ..................... 367,372
Colusa ........................ 227,244
Contra Costa .................. 9,266,091
Del Norte ..................... 260,620
El Dorado ..................... 1,465,981
Fresno ........................ 7,778,611
Glenn ......................... 302,192
Humboldt ...................... 1,433,725
Imperial ...................... 1,499,081
Inyo .......................... 188,370
Kern .......................... 6,684,032
Kings ......................... 1,409,501
Lake .......................... 531,524
Lassen ........................ 317,119
Los Angeles ................... 103,217,625
Madera ........................ 1,164,287
Marin ......................... 2,369,777
Mariposa ...................... 177,419
Mendocino ..................... 997,570
Merced ........................ 2,211,012
Modoc ......................... 119,325
Mono .......................... 92,964
Monterey ...................... 3,789,991
Napa .......................... 1,128,692
Nevada ........................ 503,547
Orange ........................ 27,730,861
Placer ........................ 2,219,818
Plumas ........................ 238,066
Riverside ..................... 14,161,003
Sacramento .................... 12,232,737
San Benito .................... 477,872
San Bernardino ................ 16,361,855
San Diego ..................... 27,470,228
San Francisco ................. 15,567,648
San Joaquin ................... 6,075,964
San Luis Obispo ............... 2,350,289
San Mateo ..................... 6,704,877
Santa Barbara ................. 3,894,357
Santa Clara ................... 17,155,293
Santa Cruz .................... 2,433,423
Shasta ........................ 1,592,267
Sierra ........................ 37,051
Siskiyou ...................... 496,974
Solano ........................ 3,796,251
Sonoma ........................ 4,439,389
Stanislaus .................... 4,516,707
Sutter ........................ 764,351
Tehama ........................ 618,393
Trinity ....................... 104,770
Tulare ........................ 3,781,964
Tuolumne ...................... 515,961
Ventura ....................... 7,085,556
Yolo .......................... 1,735,079
Yuba .......................... 620,137
(2) The total amount of reductions for all counties and cities and
counties determined pursuant to this subdivision is three hundred
fifty million dollars ($350,000,000) for the 2004-05 fiscal year and
that same amount for the 2005-06 fiscal year.
(b) (1) The total amount of revenue required to be allocated to a
city and county under Section 97.70 shall be reduced by the product
of the following two amounts:
(A) The percentage represented by the following fraction:
(i) The numerator is the total amount of money allocated to the
city and county from the Motor Vehicle License Fee Account in the
Transportation Tax Fund for the 2002-03 fiscal year pursuant to
subdivision (c) of Section 11005, as reported in the State Controller'
s Monthly Motor Vehicle License Fee Reports for the 2002-03 fiscal
year.
(ii) The denominator is the total amount of money allocated among
all cities and cities and counties from the Motor Vehicle License Fee
Account in the Transportation Tax Fund for the 2002-03 fiscal year
pursuant to subdivision (c) of Section 11005, as reported in the
State Controller's Monthly Motor Vehicle License Fee Reports for the
2002-03 fiscal year.
(B) Three hundred fifty million dollars ($350,000,000).
(2) (A) The total amount of revenue required to be allocated to
each city under Section 97.70 shall be reduced by the sum of the
following three amounts:
(i) The product of the following two amounts:
(I) The percentage represented by the following fraction:
(Ia) The numerator is the total amount of money allocated to the
city from the Motor Vehicle License Fee Account in the Transportation
Tax Fund for the 2002-03 fiscal year, as reported in the State
Controller's Monthly Motor Vehicle License Fee Reports for the
2002-03 fiscal year.
(Ib) The denominator is the total amount of money allocated among
all cities from the Motor Vehicle License Fee Account in the
Transportation Tax Fund for the 2002-03 fiscal year, as reported in
the State Controller's Monthly Motor Vehicle License Fee Reports for
the 2002-03 fiscal year.
(II) The product of the following two amounts:
(IIa) Thirty-three and one-third percent.
(IIb) The difference between three hundred fifty million dollars
($350,000,000) and the amount described in paragraph (1).
(ii) The product of the following two amounts:
(I) The percentage represented by the following fraction:
(Ia) The numerator is the total amount of money transmitted to the
city under Section 7204 for the 2002-03 fiscal year, as reported in
Table 21A of the 2002-03 edition of the State Board of Equalization
Annual Report.
(Ib) The denominator is the total amount of money transmitted to
all cities under Section 7204 for the 2002-03 fiscal year, as
reported in Table 21A of the 2002-03 edition of the State Board of
Equalization Annual Report.
(II) The product of the following two amounts:
(IIa) Thirty-three and one-third percent.
(IIb) The difference between three hundred fifty million dollars
($350,000,000) and the amount described in paragraph (1).
(iii) The product of the following two amounts:
(I) The percentage represented by the following fraction:
(Ia) The numerator is the total amount of ad valorem property tax
revenue allocated to the city for the 2002-03 fiscal year, as
reported in the 2001-02 edition of the State Controller's Cities
Annual Report.
(Ib) The denominator is the total amount of ad valorem property
tax revenue allocated among all cities for the 2002-03 fiscal year,
as reported in the 2001-02 edition of the State Controller's Cities
Annual Report.
(II) The product of the following two amounts:
(IIa) Thirty-three and one-third percent.
(IIb) The difference between three hundred fifty million dollars
($350,000,000) and the amount described in paragraph (1).
(B) Notwithstanding subparagraph (A), the reduction required by
this paragraph for any city shall not be less than 2 percent, nor
more than 4 percent, of the general revenues of the city, as reported
in the 2001-02 edition of the State Controller's Cities Annual
Report. If the amount determined for a city under subparagraph (A)
exceeds 4 percent of the general revenues of the city, as reported in
the 2001-02 edition of the State Controller's Cities Annual Report,
the amount of that excess shall be allocated among the reductions
required for all other cities in percentage shares corresponding to
those reduction amounts.
(3) On or before September 15, 2004, the Controller shall notify
the auditor of each county and city and county of the reductions
required by this subdivision.
(4) The total amount of reductions for all cities and cities and
counties determined pursuant to this subdivision shall be three
hundred fifty million dollars ($350,000,000) for the 2004-05 fiscal
year and that same amount for the 2005-06 fiscal year.
(5) (A) In lieu of a reduction under paragraph (2), a city may
transmit to the county auditor for deposit in the county Educational
Revenue Augmentation Fund an amount equal to that reduction. For the
2004-05 fiscal year, if the county auditor does not receive a
payment under this paragraph from a city on or before October 1,
2004, the auditor shall make the reduction required by paragraph (2).
For the 2005-06 fiscal year, if the county auditor does not receive
a payment under this paragraph from a city on or before October 1,
2005, the auditor shall make the reduction required by paragraph (2).
(B) Notwithstanding any other provision of law, to make the
transmittals authorized by this paragraph, a city may use any funds
or revenues, the use of which is not restricted by federal law or the
California Constitution.
(6) (A) Notwithstanding any other provision of law, a city that
has established a reserve for subsidence contingencies may, for the
2004-05 and 2005-06 fiscal years only, retain interest earned on that
reserve for the previous calendar year in an amount not to exceed
the amount of the reduction for that city required by this
subdivision.
(B) The Legislature finds and declares that the amounts retained
by a city pursuant to subparagraph (A) are in excess of trust needs
and are free from the public trust for navigation, commerce,
fisheries, and any other trust uses and restrictions.
(C) A city that has retained an amount under subparagraph (A)
shall, beginning with the 2006-07 fiscal year, repay to the reserve
for subsidence contingencies that amount so retained. The repayment
shall be made in annual increments, which increments shall not be
less than five hundred thousand dollars ($500,000), until the amount
retained by the city has been repaid. Those amounts repaid to the
reserve for subsidence contingencies are subject to the public trust
and shall be used only for the purposes prescribed by law for the
reserve.
(c) That amount of revenue that is not allocated to a county, city
and county, or a city as a result of subdivisions (a) and (b), and
that amount that is received by the county auditor under paragraph
(5) of subdivision (b), shall be deposited in the county Educational
Revenue Augmentation Fund and shall be allocated as specified in
subdivision (d) of Section 97.3.
(d) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, shall not reflect, for a preceding
fiscal year, any portion of any allocation required by this section.
97.72. Notwithstanding any other provision of law, for each of the
2004-05 and 2005-06 fiscal years, all of the following apply:
(a) (1) (A) (i) Except as otherwise provided in clauses (ii) and
(iii), the total amount of ad valorem property tax revenue, other
than these revenues that are pledged to debt service, otherwise
allocated for each of those fiscal years to each enterprise special
district shall be reduced by the lesser of the following:
(I) Forty percent of the amount of ad valorem property tax revenue
of the district for the 2001-02 fiscal year, as reported in the
2001-02 edition of the State Controller's Special Districts Annual
Report.
(II) An amount equal to 10 percent of that district's total
revenues for the 2001-02 fiscal year, from whatever source, as
reported in the 2001-02 edition of the State Controller's Special
Districts Annual Report.
(ii) The total amount of ad valorem property tax revenue otherwise
allocated for each of those fiscal years to each enterprise special
district that is a transit district shall be reduced by 3 percent of
the amount of ad valorem property tax revenue of the district for the
2001-02 fiscal year, as reported in the 2001-02 edition of the State
Controller's Special Districts Annual Report.
(iii) The total amount of ad valorem property tax revenue
otherwise allocated for each of those fiscal years to an enterprise
special district that also performs, as reported in the 2001-02
edition of the State Controller's Special Districts Annual Report,
nonenterprise functions other than fire protection or police
protection shall be decreased by both of the following, not to exceed
10 percent of a district's total revenues from whatever source, as
reported in the 2001-02 edition of the State Controller's Special
Districts Annual Report:
(I) Forty percent of the amount of ad valorem property tax revenue
of the district's enterprise functions for the 2001-02 fiscal year,
as reported in the 2001-02 edition of the State Controller's Special
Districts Annual Report.
(II) Ten percent of the amount of ad valorem property tax revenue
of the district's nonenterprise functions for the 2001-02 fiscal
year, as reported in the 2001-02 edition of the State Controller's
Special Districts Annual Report.
(B) If an enterprise special district is located in more than one
county, the auditor of each county in which that enterprise special
district is located shall implement that portion of the total
reduction, required by subparagraph (A) with respect to that
district, determined by the ratio of the amount of ad valorem
property tax revenue allocated to that district from the county to
the total amount of ad valorem property tax revenue allocated to that
district from all counties.
(2) The Controller shall determine the amount of the ad valorem
property tax revenue reduction required by paragraph (1) for each
enterprise special district in each county. The Controller shall
then determine whether the total amount of ad valorem property tax
revenue reductions under paragraph (1) and Section 97.73 is less than
three hundred fifty million dollars ($350,000,000). If, for either
the 2004-05 or 2005-06 fiscal year, the total of the amount of these
reductions is less than three hundred fifty million dollars
($350,000,000), the total amount of ad valorem property tax revenue
allocated to each enterprise special district, other than an
enterprise special district that is a transit district, shall be
reduced by an additional amount equal to that district's
proportionate share of the difference, provided that the total
reduction under this section for a district shall not exceed 10
percent of that district's revenue from whatever source for the
2001-02 fiscal year, as reported in the 2001-02 edition of the State
Controller's Special Districts Annual Report. If, as a result of
this 10-percent limitation, any portion of the difference remains
unapplied, that remaining portion shall, as many times as necessary,
be applied in proportionate shares among those enterprise special
districts, other than transit districts, for which the 10-percent
limitation has not been reached, until a three hundred fifty million
dollar reduction ($350,000,000) has been applied. The Controller
shall, on or before October 25, 2004, notify the Director of Finance
of the reduction amounts determined under this subdivision. The
Director of Finance shall, on or before November 12, 2004, notify
each county auditor of the allocation reductions required by this
paragraph and Section 97.73.
(b) That amount of ad valorem property tax revenue that is not
allocated to an enterprise special district as a result of
subdivision (a) shall instead be deposited in the county Educational
Revenue Augmentation Fund and shall be allocated as specified in
subdivision (d) of Section 97.3.
(c) For purposes of this section, all of the following apply:
(1) "Enterprise special district" means a special district that
performs, as reported in the 2001-02 edition of the State Controller'
s Special Districts Annual Report, an enterprise function.
"Enterprise special district" does not include a fire protection
district that was formed under the Shade Tree Law of 1909 set forth
in Article 2 (commencing with Section 25620) of Chapter 7 of Division
2 of Title 3 of the Government Code, a local health care district as
described in Division 23 (commencing with Section 32000) of the
Health and Safety Code, or a qualified special district as defined in
Section 97.34.
(2) With respect to an enterprise special district that also
performs, as reported in the 2001-02 edition of the State Controller'
s Special Districts Annual Report, a police protection nonenterprise
function with certified peace officers, as described in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
or a fire protection nonenterprise function, "the amount of ad
valorem property tax revenue of the district for the 2001-02 fiscal
year" does not include ad valorem property tax revenue of that
district for fire protection or police protection nonenterprise
functions, as reported in the 2001-02 edition of the State Controller'
s Special Districts Annual Report.
(3) For purposes of this section, "revenues that are pledged to
debt service" includes only those amounts required as the sole source
of repayment to pay debt service costs in the 2002-03 fiscal year on
debt instruments issued by an enterprise special district for the
acquisition of fixed assets. For purposes of this paragraph, "fixed
assets" means land, buildings, equipment, and improvements, including
improvements to buildings.
(d) For the purposes of this section, if a special district's
financial transactions do not appear in the 2001-02 edition of the
State Controller's Special Districts Annual Report, the Controller
shall use the most recent data available for that district.
(e) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, shall not reflect, for a preceding
fiscal year, any portion of any allocation required by this section.
97.73. Notwithstanding any other provision of law, for each of the
2004-05 and 2005-06 fiscal years, all of the following apply:
(a) (1) (A) The total amount of ad valorem property tax revenue,
other than those revenues that are pledged to debt service, otherwise
allocated for each of those fiscal years to each nonenterprise
special district shall be reduced by 10 percent of the amount of ad
valorem property tax revenue of the district for the 2001-02 fiscal
year, as reported in the 2001-02 edition of the State Controller's
Special Districts Annual Report.
(B) (i) Notwithstanding subparagraph (A), for the Laguna Niguel
Community Service District in the County of Orange, the reduction
described in subparagraph (A) shall be 4 percent rather than 10
percent.
(ii) If the district described in clause (i) is not dissolved
before July 1, 2006, for each of the 2006-07 and 2007-08 fiscal
years, the auditor shall reduce the total amount of ad valorem
property tax revenue, other than those revenues that are pledged to
debt service, otherwise allocated to that district for each of those
fiscal years by 6 percent of the amount of ad valorem property tax
revenue of the district for the 2001-02 fiscal year, as reported in
the 2001-02 edition of the State Controller's Special Districts
Annual Report.
(C) If a nonenterprise special district is located in more than
one county, the auditor of each county in which that nonenterprise
special district is located shall implement that portion of the total
reduction, required by subparagraph (A) with respect to that
district, determined by the ratio of the amount of ad valorem
property tax revenue allocated to that district from the county to
the total amount of ad valorem property tax revenue allocated to that
district from all counties.
(2) The Controller shall determine the amount of the ad valorem
property tax revenue reduction required by paragraph (1) for each
nonenterprise special district in each county and notify the Director
of Finance of these amounts on or before October 25, 2004.
(b) That amount of ad valorem property tax revenue that is not
allocated to a nonenterprise special district as a result of
subdivision (a) shall instead be deposited in the county Educational
Revenue Augmentation Fund and shall be allocated as specified in
subdivision (d) of Section 97.3.
(c) For purposes of this section, all of the following apply:
(1) (A) "Nonenterprise special district" means a special district
that engages solely, as reported in the 2001-02 edition of the State
Controller's Special Districts Annual Report, in nonenterprise
functions, and a qualified special district as defined in Section
97.34.
(B) Notwithstanding any other provision of law, "nonenterprise
special district" does not include any of the following:
(i) A fire protection district that was formed under the Shade
Tree Law of 1909 set forth in Article 2 (commencing with Section
25620) of Chapter 7 of Division 2 of Title 3 of the Government Code.
(ii) A police protection district formed pursuant to Part 1
(commencing with Section 20000) of Division 14 of the Health and
Safety Code.
(iii) A fire protection district formed under the Fire Protection
District Law of 1987 (Part 2.7 (commencing with Section 13800) of
Division 12 of the Health and Safety Code) or a fire protection
district formed under the Fire Protection District Law of 1961, or
any of its statutory predecessors, and that existed on January 1,
1988.
(iv) Any library special district, including, but not limited to,
the following:
(I) A county free library system established pursuant to Article 1
(commencing with Section 19100) of Chapter 6 of Part 11 of Division
1 of Title 1 of the Education Code.
(II) A unified school district and union school district public
library district established pursuant to Chapter 3 (commencing with
Section 18300) of Part 11 of Division 1 of Title 1 of the Education
Code.
(III) A library district established pursuant to Chapter 8
(commencing with Section 19400) of Part 11 of Division 1 of Title 1
of the Education Code.
(IV) A library district in unincorporated towns and villages
established pursuant to Chapter 9 (commencing with Section 19600) of
Part 11 of Division 1 of Title 1 of the Education Code.
(v) A memorial district formed pursuant to Article 1 (commencing
with Section 1170) of Chapter 1 of Part 2 of Division 6 of the
Military and Veterans Code.
(vi) A mosquito abatement district or a vector control district
formed pursuant to Chapter 1 (commencing with Section 2000) of
Division 3 of the Health and Safety Code, or any predecessor to that
law.
(vii) The Glenn County Pest Abatement District and the East Side
Mosquito Abatement District formed pursuant to Chapter 8 (commencing
with Section 2800) of Division 3 of the Health and Safety Code.
(viii) (I) For the 2005-06 fiscal year, a local health care
district as described in Division 23 (commencing with Section 32000)
of the Health and Safety Code.
(II) Notwithstanding any other provision of law, in making the
determinations required by paragraph (2) of subdivision (a) of
Section 97.72, the Controller shall ensure that the operation of this
clause does not result in a net increase in the total amount of the
reduction for any special district required by this section or
Section 97.72 for the 2005-06 fiscal year from the total amount of
the reduction determined under those provisions for that special
district for the 2004-05 fiscal year.
(2) With respect to a nonenterprise special district that
performs, as reported in the 2001-02 edition of the State Controller'
s Special Districts Annual Report, nonenterprise functions and police
protection services with certified peace officers, as described in
Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the
Penal Code, or nonenterprise functions and fire protection services,
"the amount of ad valorem property tax revenue of the district for
the 2001-02 fiscal year" does not include ad valorem property tax
revenue of that district for fire protection or police protection
nonenterprise functions, as reported in the 2001-02 edition of the
State Controller's Special Districts Annual Report.
(3) With respect to a nonenterprise special district formed
pursuant to Article 3 (commencing with Section 5500) of Chapter 3 of
Division 5 of the Public Resources Code that performs, as reported in
the 2001-02 edition of the State Controller's Special Districts
Annual Report, nonenterprise functions and police protection services
with certified peace officers, as described in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal Code,
or nonenterprise functions and fire protection services, "the amount
of ad valorem property tax revenue of the district for the 2001-02
fiscal year" does not include total expenditures net of total
revenues by that district for fire protection or police protection
nonenterprise functions, as reported in the 2001-02 edition of the
State Controller's Special Districts Annual Report.
(4) For purposes of this section, "revenues that are pledged to
debt service" includes only those amounts required as the sole source
of repayment to pay debt service costs in the 2002-03 fiscal year on
debt instruments issued by a nonenterprise special district for the
acquisition of fixed assets. For purposes of this paragraph, "fixed
assets" means land, buildings, equipment, and improvements, including
improvements to buildings.
(d) For the purposes of this section, if a special district's
financial transactions do not appear in the 2001-02 edition of the
State Controller's Special Districts Annual Report, the Controller
shall use the most recent data available for that district.
(e) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, shall not reflect, for a preceding
fiscal year, any portion of any allocation required by this section.
97.75. Notwithstanding any other provision of law, for the 2004-05
and 2005-06 fiscal years, a county shall not impose a fee, charge, or
other levy on a city, nor reduce a city's allocation of ad valorem
property tax revenue, in reimbursement for the services performed by
the county under Sections 97.68 and 97.70. For the 2006-07 fiscal
year and each fiscal year thereafter, a county may impose a fee,
charge, or other levy on a city for these services, but the fee,
charge, or other levy shall not exceed the actual cost of providing
these services.
97.76. (a) On or before September 1, 2004, the Controller shall
determine the countywide vehicle license fee adjustment amount, as
defined in Section 97.70, for the 2004-05 fiscal year and the vehicle
license fee adjustment amount, as defined in Section 97.70, for each
city, county, and city and county for the 2004-05 fiscal year, and
notify the county auditor of these amounts.
(b) On or before October 15, 2005, in consultation with the Bureau
of State Audits, the Controller shall determine the amount specified
in clause (i) of subparagraph (B) of paragraph (1) of subdivision
(c) of Section 97.70 for each city, county, and city and county and
notify the county auditor of these amounts.
97.77. An enterprise special district and a nonenterprise special
district shall not pledge, on or after July 1, 2004, and before June
30, 2006, through a bond covenant to pay debt service costs on debt
instruments issued by the district, any ad valorem property tax
revenue that would otherwise be dedicated to the reduction required
by Sections 97.72 and 97.73.
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