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Legislative Update

This update provides information on the bills considered by Governor Brown in 2016, including the number of bills vetoed, and highlights important bills related to property tax payment programs, partial payments of delinquent property taxes, participation in the VLF Swap, and various property tax exemptions.

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Legislative Update

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  1. Legislative Update Various Bills Signed and Vetoed by the Governor in 2016 Meeting of the SACA Property Tax Managers’ Subcommittee October 4, 2016

  2. According to a recent report by the California Senate Office of Research: • This year, Governor Brown considered 1,059 bills. He considered 1,074 bills in 2014. • This year, Governor Brown vetoed 160 bills, or 15.1%. • During his 14 years as Governor (1975 to 1983 and 2011 to present), the Governor has vetoed 8% of the bills he has considered; 15,935 bills have been chaptered and 1,304 bills have been vetoed. • Governor Brown’s average veto rate (13.3%) during his current term (2011–16) is triple his veto rate during his first two terms (4.6%).

  3. AB 2691 (Holden) – Allows county boards of supervisors to adopt resolutions to implement a Monthly Property Tax Payment Program for certain disabled persons, and/or for persons aged 62 years or older. The Program would only be for secured roll payments. • Status – Vetoed on September 23, 2016. • Veto Message - “County supervisors, tax collectors, and auditors across the state oppose this measure due to the significant costs to upgrade tax collection systems. I am not convinced that changing these current systems, many of which have been in place for decades, is worth the cost.”

  4. AB 2291 (Achadjian) - Allows the county tax collector to charge fees to recover the costs of accepting partial payments of delinquent property taxes outside of the Permanent Installment Plan (PIP).Under PIP, property owners with delinquent property taxes may pay those taxes via installment payments, and the county may charge an administrative fee. You must pay at least 20 percent of the delinquent tax amount each year.  • Status – Signed on September 9, 2016.

  5. SB 817 (Roth) – Allows four recently incorporated cities (Eastvale, Jurupa Valley, Menifee, and Wildomar) in Riverside County to participate in the VLF Swap beginning in 2016-17.DOF estimated the fiscal impact at $18 million Proposition 98 General Fund in its first year, growing annually thereafter. • Status – Vetoed on September 23, 2016. • Veto Message – “Last year, in recognition of the fiscal challenges these four cities confront, I signed SB 107 which provided them approximately $24 million dollars. While I commend Senator Roth's tireless commitment to assist the cities, this bill requires the state to make additional and long term General Fund spending commitments. As such, this proposal must be considered in light of other budget priorities during upcoming budget deliberations.”

  6. AB 1952 (Gordon) - Creates a mechanism for DOF to authorize the transfer of State General Fund monies to support the Senior Citizens' and Disabled Citizens' Property Tax Postponement Program, if the SCO determines there are insufficient monies in the Senior Citizens' and Disabled Citizens' Property Tax Postponement Fund to pay all eligible participants. • Status – Vetoed on September 21, 2016. • Veto Message – “The premise of the 2014 legislation reinstating this program was that it be entirely self-financing. This bill will reverse that, putting the General Fund back on the hook.”

  7. SB 909 (Beall) – Expands eligibility for the Senior Citizens' Property Tax Postponement Program to properties owned by special needs trusts.Special needs trusts are legal arrangements where a person or organization manages assets for an individual with a disability.The beneficiary cannot sell or give away their rights under the trust, and they have no control of the assets. • Status – Signed on September 21, 2016.

  8. SB 1458 (Bates) - Expands eligibility for the Disabled Veterans’ Property Tax Exemption to veterans who were discharged under conditions that are "other than dishonorable“, but who still qualify for federal veterans' health and medical benefits. The exemption currently ranges from $127,510 to $191,266 of assessed value, depending on income.The BOE estimates the bill will result in property tax revenue losses for K-14 schools of at least $127,000 per year for every additional 100 veterans who qualify for benefits under its provisions. • Status – Signed on September 29, 2016.

  9. AB 1891 (Dababneh) - Requires parcel tax exemptions granted by school districts to remain in effect until the recipient property ownerbecomes ineligible for the exemption. School districts can exempt people over 65, and people receiving disability benefits, from parcel taxes. Some school districts require property owners to annually reapply for their parcel tax exemption, while others continue the exemption indefinitely. • Status – Signed on September 22, 2016.

  10. SB 1315 (Bates) - Creates an alternative process for county boards of supervisors to adopt annual county budgets.Counties currently must approve a recommended budget by June 30.  It provides interim expenditure authority until the board of supervisors approves a final budget by October 2.Even if the board approves the final budget before July 1, the county must still compile and approve a recommended budget. This bill still requires counties to prepare a recommended budget, which will be made available to the public by May 30.  The board of supervisors will hold hearings no later than June 20.  After hearings, the board may amend and adopt the recommended budget as a final budget by June 30.  • Status – Signed on July 1, 2016.

  11. AB 1661 (McCarty) - Requires city, county, and special district elected officials and governing board members to receive sexual harassment prevention training every two years, provided they receive a salary or stipend. • Status – Signed on September 29, 2016.

  12. SB 1012 (Nguyen) - Requires state and local agencies to only display American and California State flags that have been manufactured in the United States. • Status – Signed on September 27, 2016.

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