Property tax revenues: Proposition 1A receivables.

(1) Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue among local jurisdictions in accordance with specified formulas and procedures. The California Constitution allows for a specified suspension of the prohibition on the Legislature from modifying the manner of apportioning ad valorem property tax revenues. Existing law requires the auditor of each county to reduce the amount of ad valorem property tax revenue apportionments to each local agency for the 2009–10 fiscal year by 8% of the total amount of ad valorem property tax revenue apportioned to that local agency in the 2008–09 fiscal year. The Marks-Roos Local Bond Pooling Act of 1985 defines the term "authority" and authorizes joint powers authorities to, among other things, purchase, with the proceeds of bonds or its revenue, a local agency's right to receive moneys in repayment of its revenue losses (Proposition 1A receivables) resulting from this modification of ad valorem property tax revenue allocations. Existing law authorizes a local agency subject to this reduction to sell its Proposition 1A receivables to the authority. This bill would revise the definition of the term "authority," in the case of an authority issuing bonds in which Proposition 1A receivables are pledged to the payment of the bonds, to require it to consist of not less than 250 local agencies. The bill would require a county auditor to prepare, by September 15, 2009, a list of each taxing agency within the county and the amount of the Proposition 1A receivables, to prepare a certified list by October 30, 2009, and to make this information available, as specified. The bill would also revise provisions regarding the sale of bonds for which the indebtedness is serviced by Proposition 1A receivables. By imposing new duties upon county auditors, this bill would impose a state-mandated local program. (2) Existing law specifies authorized investments for local agencies. This bill would additionally authorize a local agency to purchase, with its revenue, Proposition 1A receivables sold pursuant to the requirements that would be imposed by this bill. (3) Existing law allows the Director of Finance, upon the written request by a local agency no later than October 15, 2009, to decrease the amount by which ad valorem property taxes are required to be reduced for the 2009–10 fiscal year, on the basis of extreme hardship. Existing law also requires the state to fully reimburse these revenue reductions in specified amounts. This bill would instead allow this request to be made 30 days after the issuance of bonds or December 1, 2009, whichever date is earlier, and would authorize the Director of Finance to make this decrease only to the extent that the agency did not receive bond proceeds for the full amount of Proposition 1A receivables that it offered for sale. The bill would also revise provisions regarding the reimbursement of the revenue reductions. (4) The bill would provide a court ruling that any portion of the revenues that are subject to the ad valorem property tax reduction may not be loaned to the state would not affect any remaining revenues or the implementation of any other portion of this bill or Chapter 14 of the Statutes of the 2009–10 Fourth Extraordinary Session. (5) 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 these statutory provisions. (6) This bill would declare that it is to take effect immediately as an urgency statute.