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California State Association of Counties

CSAC Bulletin Article

Government Finance and Operations 8/15/2014

August 15, 2014 Jean Kinney Hurst Geoffrey Neill

Gut and Amend

AB 816 (Hall) – Oppose Unless Amended
As Amended on July 13, 2014

AB 816, by Assembly Member Isadore Hall, was amended Wednesday to exempt utility companies from paying sales tax on home appliances that the utility then gives away to consumers. The appliance must meet minimal efficiency requirements to qualify for the exemption.

Notwithstanding the fact that the efficiency requirements are minimal, by passing this bill the state would be using county and city revenues, as well as state revenues, to accomplish a statewide goal. Because of the various changes to sales and use tax allocations over the past thirty years, counties now receive almost half of sales and use tax revenues. About two-thirds of that revenue is dedicated to providing federal and state programs—including social services and the incarceration and rehabilitation of felons—or local public safety services.

Counties have no problem with the state deciding to give its own money to private utility companies when they purchase minimally efficient appliances for consumers, but unless AB 816 is amended to remove the local portions of the sales and use tax from the exemption, we must oppose the bill.

Elections

AB 280 (Alejo) – Concerns
As Amended on June 18, 2014

AB 280, by Assembly Member Luis Alejo, was held in the Senate Appropriations Committee yesterday. The bill would have implemented a new, state-level Voting Rights Act that would have required the Secretary of State to review changes to jurisdictional boundaries, voting district boundaries, and polling places, among other things. CSAC’s concerns were focused on the administrative and financial difficulties AB 280 would have created as written.

Taxes

AB 1717 (Perea) – Support
As Amended on July 2, 2014

AB 1717, by Assembly Member Henry Perea, would implement a system for collecting state and local charges, including utility users taxes, on prepaid wireless purchases. These transactions have historically escaped collection because, unlike wireline and post-paid services, the service is not always aware of the consumer’s location.

The Senate Appropriations Committee passed AB 1717 on Thursday, August 14. The bill now moves to the full Senate.

AB 2231 (Gordon) – Support
As Amended on August 4, 2014

AB 2231, by Assembly Member Rich Gordon, would restore the Senior Citizens’ Property Tax Postponement Program, which allows seniors and people with disabilities to stay in their homes without paying property taxes. The property taxes are paid when ownership of the home changes.

The Senate Appropriations Committee passed AB 2231 on Thursday, August 14. The bill now moves to the full Senate.

AB 2372 (Ammiano) – Support
As Amended on July 2, 2014

AB 2372, by Assembly Member Tom Ammiano, would have changed the definition of “change of ownership” for the purposes of property reassessment to capture more corporate changes of ownership. Despite a landmark agreement between interest groups on both sides of property tax issues, the Senate Appropriations Committee held this bill on its suspense file.

SB 69 (Roth) – Support
As Amended on June 16, 2014

SB 69, by Senator Richard Roth, would provide a “Vehicle License Fee Adjustment Amount” for newly incorporated cities, providing immediate financial assistance to the four newly incorporated cities in Riverside County.

The Assembly Appropriations Committee passed SB 69 on Thursday, August 14. The bill now moves to the full Assembly.

Redevelopment

AB 2493 (Bloom) – Oppose
As Amended on July 1, 2014

AB 2493, by Assembly Member Richard Bloom, would authorize successor agencies of dissolved redevelopment agencies to use and commit proceeds from bonds issued between January 1, 2011, and June 28, 2011, for certain types of projects. This would directly affect the allocation of property tax revenues.

The Senate Appropriations Committee passed AB 2493 on Thursday, August 14. The bill now moves to the full Senate.

SB 1129 (Steinberg) – Oppose
As Amended on May 27, 2014

SB 1129, by Senator Darrell Steinberg, would make changes to three components of the redevelopment dissolution process: enforceable obligations, long range property management plans and compensation agreements, and use of bond proceeds for debt issued in 2011. This would directly affect the allocation of property tax revenues.

The Assembly Appropriations Committee passed SB 1129 on Thursday, August 14. The bill now moves to the full Assembly.

Broadband

AB 2292 (Bonta) – Support
As Amended on June 11, 2014

AB 2292, by Assembly Member Rob Bonta, would allow infrastructure financing districts to finance public capital facilities or projects that include broadband.

The Assembly Local Government Committee passed AB 2292 on a vote of 8-0 on Wednesday, August 13. The bill now awaits action by the full Assembly.

SB 1364 (Fuller) – Support
As Amended on July 1, 2014

SB 1364, by Senator Jean Fuller, would extend to 2019 the sunset date for the California High-Cost Fund-A (CHCF-A) and CHCF-B, which subsidize telephone companies to provide service in rural and small metropolitan communities.

The Assembly Appropriations Committee passed SB 1364 on Thursday, August 14. The bill now moves to the full Assembly.

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August 15, 2014 Jean Kinney Hurst Geoffrey Neill

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