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SB-606 Water conservation.(2017-2018)

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Date Published: 07/13/2017 09:00 PM
SB606:v96#DOCUMENT

Amended  IN  Assembly  July 13, 2017
Amended  IN  Assembly  June 22, 2017
Amended  IN  Senate  April 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 606


Introduced by Senators Hertzberg, Lara, and Mitchell Skinner and Hertzberg
(Principal coauthor: Assembly Member Jones-Sawyer)

February 17, 2017


An act to add Section 201.8 to the Revenue and Taxation Code, relating to taxation. An act relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 606, as amended, Skinner. Property taxation: exemption: Los Angeles Memorial Coliseum. Water conservation.
Existing law requires the state to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. Existing law requires agricultural water suppliers to prepare and adopt agricultural water management plans with specified components on or before December 31, 2012, and to update those plans on or before December 31, 2015, and on or before December 31 every 5 years thereafter. Existing law sets forth various findings and declarations related to water conservation.
This bill would state the intent of the Legislature to enact legislation necessary to help make water conservation a California way of life.

Existing property tax law requires that all property subject to tax be assessed at its full value, and includes certain possessory interests among those property interests subject to tax. The California Constitution exempts certain property from property taxation, including property owned by the state or a local government.

This bill would require a nonprofit corporation that has contracted with a qualified governmental entity, as defined, for the conduct of activities and events at, and for the improvement, restoration, and maintenance of, the Los Angeles Memorial Coliseum and related properties, to be deemed an agent of the qualified governmental entity on or after July 29, 2013, for purposes of property taxation, and would provide that the Los Angeles Memorial Coliseum, and related properties, including only interests in those properties, that are used or possessed by the nonprofit corporation for the conduct of activities and events and that are improved, restored, and maintained by the nonprofit corporation, are exempt from taxation as governmental property.

By imposing new duties upon local officials with respect to property taxation, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations regarding the public purpose served by the bill.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles Memorial Coliseum.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: YESNO  

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


SECTION 1.

 It is the intent of the Legislature to enact legislation necessary to help make water conservation a California way of life.
SECTION 1.

The Legislature finds and declares all of the following:

(a)The Los Angeles Memorial Coliseum (hereafter coliseum) is one of the world’s most famous stadiums, having hosted countless iconic sporting events, including two Summer Olympic Games, two Super Bowls (Super Bowl I and Super Bowl VII), the World Series, including the largest crowd ever to see a baseball game, and scores of professional and college football games.

(b)The coliseum has also served as an important part of the social, cultural, and community fabric for all Californians, hosting a Papal Mass and visits by three United States Presidents, and also providing an event and gathering place for charitable organizations, religious organizations, concert events, and other community events.

(c)The Los Angeles Memorial Coliseum Commission (hereafter coliseum commission) is a governmental entity that was established in 1945 under a joint powers authority agreement between the City of Los Angeles (hereafter city), the County of Los Angeles (hereafter county), and the Sixth District Agricultural Association (hereafter state), referred to as the California Science Center, an institution of the State of California.

(d)In 1956, the coliseum commission leased the coliseum and related properties from the state, under the public benefit restriction that the property be used only for competitive sports; athletics; games; pageants; public recreations; motion picture production or displays; public gatherings; festivals; exhibits; industrial, trade, horticultural, or agricultural shows; conventions; and exhibitions and productions of a local, regional, national, or international character; and for purposes related or incidental to any or all of the foregoing, primarily to the end that the citizens and public generally may enjoy and receive the greatest benefit possible from the coliseum or stadium and that the city, the county, and the state may more effectively demonstrate and exploit their climatic, geographic, recreational, cultural, and commercial resources and advantages. This public benefit restriction was incorporated into other agreements concerning the coliseum and related properties between the coliseum commission, the city, the county, and the state.

(e)Under a July 2013 agreement, the coliseum commission entrusted the University of Southern California (hereafter USC), a California nonprofit public benefit corporation, with the maintenance, repair, and operation of the coliseum and related properties, thus transferring the day-to-day management and operational role over the coliseum and related properties previously done by the coliseum commission and relieving the coliseum commission from significant ongoing and future costs with respect to the coliseum.

(f)The July 2013 agreement imposes on USC the same public benefit use limitations and requirements over the coliseum and related properties that were previously set forth in the 1956 lease agreement and the other agreements between the coliseum commission, the city, the county, and the state. In facilitating these uses, USC is supporting the public benefit goals and duties of the coliseum commission. The use of the coliseum is further limited to 25 major events in a calendar year, and the coliseum commission has the independent right to designate eight public interest events to be held rent free. The coliseum commission continues to have control via approval rights over capital improvements to, or alterations of, the coliseum and related properties, and the use of trademarks incorporating the coliseum, as well as the right to enter and inspect the coliseum and related properties. The July 2013 agreement also directs USC to cooperate with any request by the city, the county, or the state for the use of the coliseum by a National Football League team on a temporary basis, and to make the coliseum available for events related to the 2015 International Special Olympics and any Olympics hosted in the county.

(g)Prior to the July 2013 agreement, the coliseum commission had been historically operating under annual financial deficits, and routine maintenance and repairs, as well as capital improvements, had been deferred.

(h)All revenues that USC receives from outside third-party event users of the coliseum are budgeted for the care, maintenance, operation, administration, improvement, or development of the coliseum. In addition, USC plans to support the care, maintenance, operation, administration, improvement, and development of the coliseum by funding more than $270,000,000 towards the renovation of the coliseum, as well as contributing in-kind services and directing other funds USC independently raises from outside donors for the maintenance and upkeep of the coliseum.

(i)USC now directly supports the operations of the coliseum commission by paying the annual rent due to the state for the lease of the coliseum and related properties by the coliseum commission, funding the annual operating budget of the coliseum commission, and paying for the retiree health care premiums of coliseum commission employees. The state and other governmental entities who own parking areas near the coliseum are also benefited as they receive parking revenue from coliseum events.

(j)In addition, USC is obligated to cover the general liability insurance and directors and officers insurance for the coliseum commission and is required to provide semiannual financial and operational reports to the coliseum commission regarding the operations of the coliseum and related properties.

SEC. 2.Section 201.8 is added to the Revenue and Taxation Code, to read:
201.8.

(a)A nonprofit corporation that has contracted with a qualified governmental entity for the conduct of activities and events at, and for the improvement, restoration, and maintenance of, the Los Angeles Memorial Coliseum and related properties shall be deemed to be an agent of the qualified governmental entity on or after July 29, 2013, for purposes of this division and for no other purpose, and the Los Angeles Memorial Coliseum, and related properties, including only interests in those properties, that are used or possessed by the nonprofit corporation for the conduct of activities and events and that are improved, restored, and maintained by the nonprofit corporation, are exempt from taxation under subdivision (a) or (b) of Section 3 of Article XIII of the California Constitution.

(b)This section shall not be construed to exempt any profit-making organization or concessionaire from any property tax, including a property tax on a possessory interest, for the conduct of activities and events at the Los Angeles Memorial Coliseum and related properties.

(c)For purposes of this section, both of the following definitions shall apply:

(1)“Los Angeles Memorial Coliseum Commission” means a joint powers authority consisting of the City of Los Angeles, the County of Los Angeles, and the Sixth District Agricultural Association known and designated as the California Science Center.

(2)“Qualified governmental entity” means the Los Angeles Memorial Coliseum Commission or the state.

SEC. 3.

The Legislature finds and declares that the addition of Section 201.8 to the Revenue and Taxation Code by this act serves a public purpose, as described in Section 1 of this act, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.

SEC. 4.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances relating to the Los Angeles Memorial Coliseum and related properties.

SEC. 5.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 6.

Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.