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SB-30 Powerplant facilities: property tax revenue allocations.(2001-2002)

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SB30:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2001–2002 2nd Ext.

Senate Bill
No. 30

Introduced  by  Senator Brulte, Oller, Torlakson
 (Coauthor(s): Senator Ackerman, Battin, Haynes, Johannessen, Knight, Morrow, Poochigian)
 (Coauthor(s): Assembly Member Ashburn, Bill Campbell, Cogdill, Cox, Florez, Leach, Leslie, Maddox, Robert Pacheco, Pescetti, Runner, Wyman)

May 17, 2001

An act to amend and repeal Section 41204.1 of the Education Code, to add Sections 96.08 and 97.08 to, and to repeal Section 97.43 of, the Revenue and Taxation Code, relating to public utilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 30, as introduced, Brulte. Powerplant facilities: property tax revenue allocations.
Existing property tax law requires the county assessor to assess the value of certain electric generation facilities. Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined.
This bill would require that the school entities share of these property tax revenues derived from locally assessed new electrical generation property, as defined, that is locally approved be allocated entirely to the county, city, or city and county in which the primary power generating operation of the new electrical generation property is located the local assessment of either locally approved new modifications to existing electric power generation facilities or locally approved new electric power generation facilities, as defined, be allocated exclusively to the county or city in which the primary power-generating operation of that facility is located. This bill also would state the intent of the Legislature that a county or city that receives additional property tax revenue pursuant to the bill’s provisions consider the impact on neighborhoods and neighboring jurisdictions of siting a powerplant in that neighborhood and near those neighboring jurisdictions.
Existing property tax law reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education.
This bill would modify these reduction and transfer provisions by requiring certain revenues otherwise allocated to a county’s Educational Revenue Augmentation Fund to instead be allocated to excess school tax entities as reimbursement for revenue losses suffered by those agencies under other provisions of this bill.
By establishing new duties with respect to the annual allocation of property tax revenues, this bill would create a state-mandated local program.
This bill also would state the intent of the Legislature, and would require the Director of Finance to make certain adjustments, with respect to ensuring that the modifications required by this bill and earlier acts to property tax revenue allocations do not have a net fiscal impact on school districts or community college districts, or upon the state’s obligation under the California Constitution to provide funding to those districts. This bill would also make technical, nonsubstantive changes with respect to these provisions and other related provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 41204.1 of the Education Code, as amended by Chapter 1111 of the Statutes of 1996, is amended to read:

41204.1.
 (a) (1) Pursuant to paragraph (2) of subdivision (b) of Section 41204, the Director of Finance shall annually adjust “the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in the 1986–87 fiscal year,” for purposes of applying paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, to reflect those property tax revenue allocation modifications required by the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code and by the qualifying provisions in a manner that ensures that those modifications will have no net fiscal impact upon the amounts that are otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.
(2) For purposes of this section, “qualifying provisions” means the following:
(A) The amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code during the 1991–92 Regular Session and the 1993–94 Regular Session.
(B) The amendments made to Sections 97.2 and 97.3 of the Revenue and Taxation Code by Chapter 1111 of the Statutes of 1996.
(C)  Sections 96.08 and 97.08 of the Revenue and Taxation Code.
(b) Notwithstanding any other provision of law, for the 2002–03 fiscal year and each fiscal year thereafter, the percentage of “General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code during the 1991–92 Regular Session, the amendments made to that same chapter during the 1993–94 Regular Session, and Sections 96.08 and 97.08 of the Revenue and Taxation Code, had been operative for the 1986–87 fiscal year.
(c) In no event may the recalculations required by subdivisions (a) and (b) result in a percentage that exceeds the “percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution prior to the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code during the 1991–92 Regular Session.
(d) It is the intent of the Legislature to ensure the following:
(1) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon school districts, including those districts that are excess tax school entities, as defined in Section 41302.5, or community college districts.
(2) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon the amounts of revenue otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

SEC. 2.

 Section 41204.1 of the Education Code, as amended by Section 1 of Chapter 84 of the Statutes of 1999, is repealed.

SEC. 3.

 Section 96.08 is added to the Revenue and Taxation Code, to read:

96.08.
 (a) Notwithstanding any other provision of this chapter, in the 2001–02 fiscal year and each fiscal year thereafter, those property tax revenues derived from the local assessment of either a locally approved new electrical generation property shall be allocated exclusively to the county, city, or city and county in which that locally approved new electrical generation property is located. electric power generation facility or a locally approved new modification of an existing electric power generation facility, that are otherwise required to be allocated among school entities, shall instead be allocated exclusively to either the county, if the primary power-generating operation of the subject facility is located in the county, or to the city in which the primary power-generating operation of that facility is located.
(b) For purposes of this section:

(1)“New electrical generation property” means, for any fiscal year to which this section applies, an improvement to real property in the form of a powerplant, cogeneration facility, or new generation facility that is approved on or after the effective date of this act. “New electrical generation property” does not include new electrical generation property that is located in a redevelopment project area.

(2)

(1) “Electric power generation facility” means, for any fiscal year for which this section applies, an improvement to real property in the form of any electric transmission line, thermal powerplant, wind electrical generating facility, hydroelectric electrical generating facility, or solar photovoltaic electrical generating facility regulated according to Division 15 (commencing with Section 25000) of the Public Resources Code. “Electric power generation facility” also means, for any fiscal year during which this section applies, an improvement to real property in the form of an electric transmission line and thermal powerplant, electric transmission line and wind electric generating facility, electric transmission line and hydroelectric electrical generating facility, or electric transmission line and solar photovoltaic electrical generating facility regulated according to Division 15 (commencing with Section 25000) of the Public Resources Code. “Electric power generation facility” does not include an electric power generation facility that is located in a redevelopment project area.
(2) “Modification of an existing electric power generation facility” means, for any fiscal year for which this section applies, an improvement to real property in the form of any alteration, replacement, or improvement of equipment that results in a 50 megawatt or more increase in the electric generating capacity of an existing thermal powerplant, wind electrical generating facility, hydroelectric electrical generating facility, or solar photovoltaic electrical generating facility. “Modification of an existing electric power generation facility” also means, for any fiscal year during which this section applies, an improvement to real property that results in an increase of 25 percent or more in the peak operating voltage or peak kilowatt capacity of an existing electric transmission line. “Modification of an existing electric power generation facility” does not include any modifications to an electric power generation facility that is located in a redevelopment project area.
(3) “New electric power generation facility” means an electric power generation facility that is completed and first placed in service on or after July 1, 2001.
(4) “New modification of an existing electric power generation facility” means a modification of an existing electric power generation facility that occurs on or after July 1, 2001.
(5) New electrical generation property is located in a county only if it is located within the unincorporated area of that county.
(c) For the 2002–03 fiscal year and each fiscal year thereafter, the amounts allocated to jurisdictions under subdivision (a) of Section 96.1 shall fully reflect the allocation modifications required by subdivision (a) for a prior fiscal year.
(d) It is the intent of the Legislature that a county or city that receives additional property tax revenues pursuant to subdivision (a) of Section 96.08 consider the following factors:
(1) The impact on the neighborhood immediately surrounding the new or modified electric power generation facility.
(2) The impact on neighboring jurisdictions of the new or modified electric power generation facility.
(e) Each reduction resulting from the implementation of subdivision (a) in the amount of ad valorem property tax revenues deposited in the county’s Educational Revenue Augmentation Fund shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and may not be applied to reduce the amounts of ad valorem property tax revenues that are allocated from that fund to special education programs or to community college districts.

SEC. 4.

 Section 97.08 is added to the Revenue and Taxation Code, to read:

97.08.
 (a) Notwithstanding any other provision of law, for the 2001–02 fiscal year and each fiscal year thereafter, the auditor shall modify those property tax revenue allocations otherwise required by this chapter in accordance with both of the following:
(1) Each excess tax school entity shall be allocated an additional amount of property tax revenue that is equal to the additional amount of property tax revenue, derived from new electrical generation property as defined in Section 96.08, that would have been allocated to the excess school tax entity, but for Section 96.08.
(2) The total amount of property tax revenue allocated to the county’s Educational Revenue Augmentation Fund shall be reduced by the total amount of additional allocations required by paragraph (1).
(b) Each reduction resulting from the implementation of subdivision (a) in the amount of ad valorem property tax revenues deposited in the county’s Educational Revenue Augmentation Fund shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and may not be applied to reduce the amounts of ad valorem property tax revenues that are allocated from that fund to special education programs or to community college districts.

SEC. 5.

 Section 97.43 of the Revenue and Taxation Code is repealed.

SEC. 6.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act provides for offsetting savings to local agencies or school districts that result in no net costs to the local agencies or school districts, within the meaning of Section 17556 of the Government Code.