95-95.4

REVENUE AND TAXATION CODE
SECTION 95-95.4




95.  For the purpose of this chapter:
   (a) "Local agency" means a city, county, and special district.
   (b) "Jurisdiction" means a local agency, school district,
community college district, or county superintendent of schools. A
jurisdiction as defined in this subdivision is a "district" for
purposes of Section 1 of Article XIII A of the California
Constitution.
   For jurisdictions located in more than one county, the county
auditor of each county in which that jurisdiction is located shall,
for the purposes of computing the amount for that jurisdiction
pursuant to this chapter, treat the portion of the jurisdiction
located within that county as a separate jurisdiction.
   (c) "Property tax revenue" includes the amount of state
reimbursement for the homeowners' exemption. "Property tax revenue"
does not include the amount of property tax levied for the purpose of
making payments for the interest and principal on either of the
following:
   (1) General obligation bonds or other indebtedness approved by the
voters prior to July 1, 1978, including tax rates levied pursuant to
Part 10 (commencing with Section 15000) of Division 1 of, and
Sections 39308 and 39311 and former Sections 81338 and 81341 of the
Education Code, and Section 26912.7 of the Government Code.
   (2) Bonded indebtedness for the acquisition or improvement of real
property approved by two-thirds of the voters on or after June 4,
1986.
   (d) "Taxable assessed value" means total assessed value minus all
exemptions other than the homeowners' and business inventory
exemptions.
   (e) "Jurisdictional change" includes any change of organization,
as defined in Section 56021 of the Government Code and a
reorganization, as defined in Section 56073 of the Government Code.
"Jurisdictional change" also includes any change in the boundary of
those special districts that are not under the jurisdiction of a
local agency formation commission.
   "Jurisdictional change" also includes a functional consolidation
where two or more local agencies, except two or more counties,
exchange or otherwise reassign functions and any change in the
boundaries of a school district or community college district or
county superintendent of schools.
   (f) "School entities" means school districts, community college
districts, the Educational Revenue Augmentation Fund, and county
superintendents of schools.
   (g) Except as otherwise provided in this subdivision, "tax rate
area" means a specific geographic area all of which is within the
jurisdiction of the same combination of local agencies and school
entities for the current fiscal year.
   In the case of a jurisdictional change pursuant to Section 99, the
area subject to the change shall constitute a new tax rate area,
except that if the area subject to change is within the same
combinations of local agencies and school entities as an existing tax
rate area, the two tax rate areas may be combined into one tax rate
area.
   Existing tax rate areas having the same combinations of local
agencies and school entities may be combined into one tax rate area.
For the combination of existing tax rate areas, the factors used to
allocate the annual tax increment pursuant to Section 98 shall be
determined by calculating a weighted average of the annual tax
increment factors used in the tax rate areas being combined.
   (h) "State assistance payments" means:
   (1) For counties, amounts determined pursuant to subdivision (b)
of Section 16260 of the Government Code, increased by the amount
specified for each county pursuant to Section 94 of Chapter 282 of
the Statutes of 1979, with the resultant sum reduced by an amount
derived by the calculation made pursuant to Section 16713 of the
Welfare and Institutions Code.
   (2) For cities, 82.91 percent of the amounts determined pursuant
to subdivisions (b) and (i) of Section 16250 of the Government Code,
plus for any city an additional amount equal to one-half of the
amount of any outstanding debt as of June 30, 1978, for "museums" as
shown in the Controller's "Annual Report of Financial Transactions of
Cities for Fiscal Year 1977-78."
   (3) For special districts, 95.24 percent of the amounts received
pursuant to Chapter 3 (commencing with Section 16270) of Part 1.5 of
Division 4 of Title 2 of the Government Code, Section 35.5 of Chapter
332 of the Statutes of 1978, and Chapter 12 of the Statutes of 1979.
   (i) "City clerk" means the clerk of the governing body of a city
or city and county.
   (j) "Executive officer" means the executive officer of a local
agency formation commission.
   (k) "City" means any city whether general law or charter, except a
city and county.
   (l) "County" means any chartered or general law county. "County"
includes a city and county.
   (m) "Special district" means any agency of the state for the local
performance of governmental or proprietary functions within limited
boundaries. "Special district" includes a county service area, a
maintenance district or area, an improvement district or improvement
zone, or any other zone or area, formed for the purpose of
designating an area within which a property tax rate will be levied
to pay for a service or improvement benefiting that area. "Special
district" includes the Bay Area Air Quality Management District.
"Special district" does not include a city, a county, a school
district, or a community college district. "Special district" does
not include any agency that is not authorized by statute to levy a
property tax rate. However, any special district authorized to levy a
property tax by the statute under which the district was formed
shall be considered a special district. Additionally, a county free
library established pursuant to Article 1 (commencing with Section
19100) of Chapter 6 of Part 11 of Division 1 of Title 1 of the
Education Code, and for which a property tax was levied in the
1977-78 fiscal year, shall be considered a special district.
   (n) "Excess tax school entity" means an educational agency for
which the amount of the state funding entitlement determined under
Section 2558, 42238, 84750, or 84751 of the Education Code, as
appropriate, is zero.



95.2.  (a) (1) Notwithstanding any other provision of law, for the
1990-91 fiscal year, for the purposes of the computations required by
Section 96.1 or its predecessor section, the amount of property tax
presumed to have been received by the county in the prior year shall
be increased by the amount of 1989-90 property tax administrative
costs proportionately attributable to incorporated cities as
determined pursuant to paragraph (2).
   (2) The auditor shall determine the 1989-90 fiscal year property
tax administrative costs proportionately attributable to incorporated
cities by adding the 1989-90 fiscal year property tax-related costs
of the assessor, tax collector, and auditor, including applicable
administrative overhead costs as permitted by federal Office of
Management and Budget Circular A-87 standards, and multiplying the
sum of those amounts by the ratio of property tax revenue received by
all incorporated cities divided by the total property tax revenue
for all local jurisdictions in the county for that fiscal year.
   (3) The county shall use the additional revenue received pursuant
to this subdivision only to fund the actual costs of assessing,
collecting, and allocating property taxes. At least once each fiscal
year, the county auditor shall report the amount of these actual
costs and allowable overhead costs to the legislative body and any
other jurisdiction or person that requests the information. To the
extent that actual costs for assessing, collecting, and allocating
property taxes plus allowable overhead costs are less than the amount
determined pursuant to paragraph (2), the county auditor shall
apportion the difference to each incorporated city as otherwise
required by this section.
   (4) The county may retain up to one-half of any increased property
tax allocation to which a jurisdiction may be otherwise entitled,
until the county receives its additional revenues pursuant to this
subdivision.
   (5) It is the intent of the Legislature in enacting this
subdivision to recognize that since the approval of Article XIII A of
the California Constitution by the voters, county governments have
borne an unfair and disproportionate part of the financial burden of
assessing, collecting, and allocating property tax revenues for
cities. It is further the intent of the Legislature that the
adjustments provided for by this subdivision shall constitute charges
by a county for the assessment, collection, and allocation of
property taxes and shall not exceed the actual costs reasonably borne
by a county for those activities.
   (b) If so directed by the board of supervisors, the auditor shall
determine the 1989-90 fiscal year property tax administrative costs
proportionately attributable to local jurisdictions other than the
county or city and county, and cities, by adding the property
tax-related costs of the assessor, tax collector, and auditor,
including applicable administrative overhead costs as permitted by
federal Office of Management and Budget Circular A-87 standards, and
multiplying the sum of those amounts by the ratio of property tax
revenue received by jurisdictions other than the county, city and
county, and cities, divided by the total property tax received by all
local jurisdictions in the county for that fiscal year.
Notwithstanding any other provision of law, this amount may be
calculated for each fiscal year commencing with the 1989-90 fiscal
year, and the auditor shall, commencing in the 1990-91 fiscal year,
if so directed by the board of supervisors, submit an invoice to
these jurisdictions for services rendered in the prior fiscal year.
   (c) Notwithstanding subdivision (b), no invoice as described in
that subdivision shall be submitted to any school district, community
college district, or county office of education, nor shall any of
those entities be required to pay any invoice, for property tax
administrative costs for services rendered in the 1990-91 fiscal
year, or in any subsequent fiscal year. This subdivision shall not be
construed to prevent the auditor of any county from collecting from
school districts, community college districts, and county offices of
education, in accordance with subdivision (b), property tax
administrative costs for services rendered to those entities in the
1989-90 fiscal year.


95.3.  (a) Notwithstanding any other provision of law, for the
1990-91 fiscal year and each fiscal year thereafter, the auditor
shall divide the sum of the amounts calculated with respect to each
jurisdiction, Educational Revenue Augmentation Fund (ERAF), or
community redevelopment agency pursuant to Sections 96.1 and 100, or
their predecessor sections, and Section 33670 of the Health and
Safety Code, by the countywide total of those calculated amounts. The
resulting ratio shall be known as the "administrative cost
apportionment factor" and shall be multiplied by the sum of the
property tax administrative costs incurred in the immediately
preceding fiscal year by the assessor, tax collector, county board of
equalization and assessment appeals boards, and auditor to determine
the fiscal year property tax administrative costs proportionately
attributable to each jurisdiction, ERAF, or community redevelopment
agency. For purposes of this paragraph, property tax administrative
costs shall also include applicable administrative overhead costs
allowed by the federal Office of Management and Budget Circular A-87
standards, but shall not include any amount reimbursed pursuant to
Section 75.60 and former Section 98.6, or include any amount in
excess of the amounts reimbursable pursuant to Section 75.60, unless
a county meets the conditions of paragraph (2) of subdivision (b) of
Section 75.60. However, no amount of funds appropriated to counties
for purposes of property tax administration in Item 9100-102-001 of
the Budget Act of 1994 or any subsequent Budget Act shall result in
any deduction from those property tax administrative costs that are
eligible for reimbursement pursuant to this subdivision.
   (b) (1) Each proportionate share of property tax administrative
costs determined pursuant to subdivision (a), except for those
proportionate shares determined with respect to a school entity or
ERAF, shall be deducted from the property tax revenue allocation of
the relevant jurisdiction or community redevelopment agency, and
shall be added to the property tax revenue allocation of the county.
For purposes of applying this paragraph for the 1990-91 fiscal year,
each proportionate share of property tax administrative costs shall
be deducted from those amounts allocated to the relevant jurisdiction
or community redevelopment agency after January 1, 1991.
   (2) It is the intent of the Legislature that the portion of those
shares of property tax administrative costs that are calculated by
the auditor for each fiscal year pursuant to subdivision (a) for
school entities and the county's ERAF, that is attributable to the
county's costs in providing boards and hearing officers for the
review of property tax assessment appeals, be calculated by local
officials and reimbursed by the state in the time and manner
specified by a future act of the Legislature that makes an
appropriation for purposes of that reimbursement.
   (c) Reductions made pursuant to this section to property tax
revenue allocations shall be made without regard to Section 907 of
the Government Code.
   (d) Any additional amounts of property tax revenue allocated to
the county pursuant to this section shall be used only to fund costs
incurred by the county in assessing, equalizing, and collecting
property taxes, and in allocating property tax revenues, and shall
constitute charges for those services, not exceeding the actual and
reasonable costs incurred by the county in performing those services.
   (e) It is the intent of the Legislature in enacting this section
to recognize that since the adoption of Article XIII A of the
California Constitution by the voters, county governments have borne
an unfair and disproportionate part of the financial burden of
assessing, collecting, and allocating property tax revenues for other
jurisdictions and for redevelopment agencies. The Legislature finds
and declares that this section is intended to fairly apportion the
burden of collecting property tax revenues and is not a reallocation
of property tax revenue shares or a transfer of any financial or
program responsibility.
   (f) Commencing with the 1992-93 fiscal year and each fiscal year
thereafter, this section shall supersede and replace Section 95.2, as
authority for a county to recover property tax administrative costs.
   (g) This section shall apply to the entire 1993-94 fiscal year,
regardless of the operative date of the act adding the predecessor to
this section, and to each fiscal year thereafter.



95.31.  (a) (1) Notwithstanding any other provision of law, any
eligible county may, upon the recommendation of the county assessor,
and by resolution of the board of supervisors of that county adopted
not later than December 1 of the fiscal year for which it is to first
apply, elect to participate in the State-County Property Tax
Administration Loan Program.
   (2) Except as specified in paragraph (3), for the purposes of this
section, an eligible county shall mean a county in which additional
property tax revenue allocated to school entities would reduce the
amount of General Fund moneys apportioned to school entities.
However, eligibility shall be terminated when, in combination with
resources in the Educational Revenue Augmentation Fund, additional
property tax revenues allocated to school entities will not result in
a reduction in the General Fund apportionments.
   (3) Notwithstanding paragraph (2), both the County of Solano and
the County of San Benito shall be deemed eligible counties that may,
upon the recommendation of the county assessor, and by resolution of
the board of supervisors of the county adopted on or before March 31,
1996, elect to participate in the State-County Property Tax
Administration Loan Program.
   (4) Notwithstanding paragraph (1), any county in which a new
assessor is elected in 1998 may, upon the recommendation of the
county assessor, and by resolution of the board of supervisors of the
county adopted on or before January 31, 1999, elect to participate
in the State-County Property Tax Administration Loan Program
commencing with the 1998-99 fiscal year.
   (b) (1) In each fiscal year from the 1995-96 fiscal year to the
2001-02 fiscal year, inclusive, an eligible county participating in
the State-County Property Tax Administration Loan Program may receive
a loan for up to the amount listed in paragraph (3). The loan shall
be repaid by June 30 of the fiscal year following the year in which
the loan is made. However, at the discretion of the Director of
Finance, the loan may be renewed once for an additional 12-month
period at the request of the participating county board of
supervisors. For the Counties of Fresno, Orange, San Benito, and
Solano any loan agreement signed on or before July 31, 1996, shall be
deemed a loan agreement for the 1995-96 fiscal year for the purposes
of this section. For any county in which a new assessor is elected
in 1998, any loan agreement signed on or before January 31, 1999,
shall be deemed a loan agreement for the 1998-99 fiscal year for the
purposes of this section.
   (2) If an eligible county elects to participate in the
State-County Property Tax Administration Loan Program, it shall enter
into a contractual agreement with the Department of Finance. At a
minimum, the contractual agreement shall include the following:
   (A) The loan amount, as determined by the Director of Finance.
   (B) Repayment provisions, including the interception of Motor
Vehicle License Fee Account moneys apportioned pursuant to Section
11005 to repay the General Fund.
   (C) A listing of the proposed use of the additional resources
including, but not limited to:
   (i) Proposed new positions.
   (ii) Increased automation costs.
   (D) An agreement to provide to the Department of Finance, by March
31 of the fiscal year in which the loan is made, a report projecting
the impact of the increased funding in the current and subsequent
fiscal year.
   (3) Upon request of the Department of Finance, the Controller
shall provide a loan to the following counties for up to the amount
specified by the Director of Finance, not to exceed the following
amounts:

  Jurisdiction                              Amount
  Alameda......................        $ 2,152,429
  Alpine.......................              3,124
  Amador.......................             80,865
  Butte........................            381,956
  Calaveras....................            109,897
  Colusa.......................             53,957
  Contra Costa.................          2,022,088
  Del Norte....................             36,203
  El Dorado....................            302,795
  Fresno.......................          1,165,249
  Glenn........................             59,197
  Humboldt.....................            210,806
  Imperial.....................            231,673
  Inyo.........................            100,080
  Kern.........................          1,211,318
  Kings........................            138,653
  Lake.........................            117,376
  Lassen.......................             54,699
  Los Angeles..................         13,451,670
  Madera.......................            212,991
  Marin........................            790,490
  Mariposa.....................             46,476
  Mendocino....................            160,435
  Merced.......................            298,004
  Modoc........................             24,022
  Mono.........................             47,778
  Monterey.....................            795,819
  Napa.........................            366,020
  Nevada.......................            234,292
  Orange.......................          6,826,325
  Placer.......................            628,047
  Plumas.......................             80,606
  Riverside....................          2,358,068
  Sacramento...................          1,554,245
  San Benito...................             90,408
  San Bernardino...............          2,139,938
  San Diego....................          5,413,943
  San Francisco................          1,013,332
  San Joaquin..................            818,686
  San Luis Obispo..............            736,288
  San Mateo....................          2,220,001
  Santa Barbara................            926,817
  Santa Clara..................          4,213,639
  Santa Cruz...................            565,328
  Shasta.......................            342,399
  Sierra.......................              7,383
  Siskiyou.....................             91,164
  Solano.......................            469,207
  Sonoma.......................          1,035,049
  Stanislaus...................            866,155
  Sutter.......................            147,436
  Tehama.......................             97,222
  Trinity......................             24,913
  Tulare.......................            501,907
  Tuolumne.....................            126,067
  Ventura......................          1,477,789
  Yolo.........................            278,309
  Yuba.........................             88,968

   (4) The Department of Finance shall consider any or all of the
following items in determining the extent to which a county has
satisfied the terms and repaid the loan, pursuant to the contract, as
offered under this part:
   (A) County performance as indicated by the State Board of
Equalization's sample survey required pursuant to Section 15640 of
the Government Code.
   (B) Performance measures adopted by the California Assessors'
Association.
   (C) Reduction of backlog of assessment appeals and Proposition 8
declines in value.
   (D) County compliance with mandatory audits required by Section
469.
   (E) Reduction of backlogs in new construction, changes in
ownership, and supplemental roll.
   (F) Other measures, as determined by the Director of Finance.
   (5) The Director of Finance shall notify the Controller of any
participating county that fails to comply with the terms of the
agreement, including the repayment of the loan. When the Controller
receives notice from the Director of Finance, the Controller shall
make an apportionment to the General Fund on behalf of the
participating county in the amount of that required payment for the
purpose of making that payment. The Controller shall make that
payment only from moneys credited to the Motor Vehicle License Fee
Account in the Transportation Tax Fund to which the participating
county is entitled at that time under Chapter 5 (commencing with
Section 11001) of Part 5 of Division 2, and shall thereupon reduce,
by the amount of the payment, the subsequent allocation or
allocations to which the county would otherwise be entitled under
that chapter.
   (c) (1) Funds appropriated for purposes of this section shall be
used to enhance the property tax administration system by providing
supplemental resources. Amounts provided to any county as a loan
pursuant to this section shall not be used to supplant the current
level of funding. In order to participate in the State-County
Property Tax Administration Loan Program, a participating county
shall maintain a base staffing, including contract staff, and total
funding level in the county assessor's office, independent of the
loan proceeds provided pursuant to this act, equal to the levels in
the 1994-95 fiscal year exclusive of amounts provided to the assessor'
s office pursuant to Item 9100-102-001 of the Budget Act of 1994.
However, in a county in which the 1994-95 funding level for the
assessor's office was higher than the 1993-94 level, the 1993-94
fiscal year staffing and funding levels shall be considered the base
year for purposes of this section. Commencing with the 1996-97 fiscal
year, if a county was otherwise eligible but was unable to
participate in this program in the 1995-96 fiscal year because it did
not meet the funding level and staffing requirements of this
paragraph, that county shall maintain a base staffing, including
contract staff, and total funding level in the county assessor's
office equal to the levels in the 1995-96 fiscal year.
   (2) Prior to the assessor's recommendation for participation in
the State-County Property Tax Administration Loan Program, the
assessor shall consult with the county tax collector, and any other
county agency directly involved in property tax administration, to
discuss the needs of the program for the duration of the contractual
agreement.
   (d) A participating county may establish a tracking system whereby
a work or function number is assigned to each appraisal or
administrative activity. That system should provide statistical data
on the number of production units performed by each employee and the
positive and negative change in assessed value attributable to the
activities performed by each employee.
   (e) Notwithstanding Section 95.3, no amount of funds provided to
an eligible county pursuant to this section shall result in any
deduction from those property tax administrative costs that are
eligible for reimbursement pursuant to Section 95.3.
   (f) At the request of the Department of Finance, the board shall
assist the Department of Finance in evaluating contracts entered into
pursuant to this section.


95.35.  (a) The Legislature finds and declares that there is a
significant and compelling state financial interest in the
maintenance of an adequately funded system of property tax
administration. This financial interest derives from the fact that 53
percent of all property tax revenues collected statewide serve to
offset the General Fund obligation to fund K-12 schools, and extends
not only to assessment and maintenance of the tax rolls, but also to
all aspects of the system which include, but are not limited to,
collection, apportionment, allocation, and processing and defending
appeals. The Legislature further finds and declares that the
combination of limitations on county revenue authority, increasing
county financial obligations, and the shift of county property taxes
to schools has created a financial disincentive for counties to
adequately fund property tax administration. This disincentive is
most clearly evidenced by the fact that counties, on average, receive
19 percent of statewide property tax revenues while they are
obligated to pay an average of 73 percent of the costs of
administration. The Legislature also finds and declares that the
State-County Property Tax Loan Program contained in Section 95.31 was
in recognition of the state's financial interest, and the success of
that program has demonstrated the appropriateness of an ongoing
commitment of state funds to reduce the burden of property tax
administration on county finances. Therefore, it is the intent of the
Legislature, in enacting this act, to establish a grant program
known as the State-County Property Tax Administration Grant Program
that will continue the success of the State-County Property Tax Loan
Program and maintain the commitment to efficient property tax
administration.
   (b) Notwithstanding any other provision of law, in the 2002-03
fiscal year and each fiscal year thereafter to the 2006-07 fiscal
year, inclusive, any county board of supervisors may, upon the
recommendation of the assessor, adopt a resolution to elect to
participate in the State-County Property Tax Administration Grant
Program. Any resolution so adopted shall comply with the terms and
conditions contained in paragraph (2) of subdivision (c). If adopted,
a copy of the resolution shall be sent to the Department of Finance,
which shall, upon approval, transmit a copy of the resolution to the
Controller.
   (c) (1) Any county electing to participate in this program may be
qualified to receive a grant in an amount, up to and including, the
applicable amount listed in paragraph (3). However, the grant
eligibility of a county may be terminated at the discretion of the
Department of Finance if a county does not meet the conditions
specified in paragraph (4).
   (2) The resolution to participate in this program shall include a
detailed listing of the proposed uses by the county of the grant
moneys, including, but not limited to:
   (A) The proposed positions to be funded.
   (B) Any increased automation costs.
   (C) The specific tasks and functions that will be performed during
the fiscal year with these funds.
   (3) Upon transmittal of the electing resolution by the Department
of Finance, the Controller shall, provided sufficient moneys have
been appropriated by the Legislature for purposes of this section,
provide a grant to the electing county for the applicable amount
specified in the following schedule:

  Jurisdiction                              Amount
  Alameda......................        $ 2,152,429
  Alpine.......................              3,124
  Amador.......................             80,865
  Butte........................            381,956
  Calaveras....................            109,897
  Colusa.......................             53,957
  Contra Costa.................          2,022,088
  Del Norte....................             36,203
  El Dorado....................            302,795
  Fresno.......................          1,165,249
  Glenn........................             59,197
  Humboldt.....................            210,806
  Imperial.....................            231,673
  Inyo.........................            100,080
  Kern.........................          1,211,318
  Kings........................            138,653
  Lake.........................            117,376
  Lassen.......................             54,699
  Los Angeles..................         13,451,670
  Madera.......................            212,991
  Marin........................            790,490
  Mariposa.....................             46,476
  Mendocino....................            160,435
  Merced.......................            298,004
  Modoc........................             24,022
  Mono.........................             47,778
  Monterey.....................            795,819
  Napa.........................            366,020
  Nevada.......................            234,292
  Orange.......................          6,826,325
  Placer.......................            628,047
  Plumas.......................             80,606
  Riverside....................          2,358,068
  Sacramento...................          1,554,245
  San Benito...................             90,408
  San Bernardino...............          2,139,938
  San Diego....................          5,413,943
  San Francisco................          1,013,332
  San Joaquin..................            818,686
  San Luis Obispo..............            736,288
  San Mateo....................          2,220,001
  Santa Barbara................            926,817
  Santa Clara..................          4,213,639
  Santa Cruz...................            565,328
  Shasta.......................            342,399
  Sierra.......................              7,383
  Siskiyou.....................             91,164
  Solano.......................            469,207
  Sonoma.......................          1,035,049
  Stanislaus...................            866,155
  Sutter.......................            147,436
  Tehama.......................             97,222
  Trinity......................             24,913
  Tulare.......................            501,907
  Tuolumne.....................            126,067
  Ventura......................          1,477,789
  Yolo.........................            278,309
  Yuba.........................             88,968

   (4) The Department of Finance shall consider the following items
in determining whether a county may continue to receive a grant under
this section:
   (A) The county's performance as indicated by the State Board of
Equalization's sample survey required by Section 15640 of the
Government Code.
   (B) Any performance measures adopted by the California Assessors'
Association, the California Association of Clerks and Elections
Officials, the State Association of County Auditor-Controllers, and
the California Association of County Treasurers and Tax Collectors.
   (C) The county's reduction of backlogs of assessment appeals and
declines in taxable value below adjusted base year value.
   (D) The county's compliance with mandatory audits required by
Section 469 or the county's delivery of tax bills as required by
Section 2610.5.
   (E) The county's reduction of backlogs of determinations regarding
new construction, changes in ownership, and supplemental
assessments.
   (F) Any other measure, as determined by the Director of Finance
and transmitted to a county prior to its receiving a grant.
   (d) (1) Funds appropriated for purposes of this section shall be
used to enhance the property tax administration system. Amounts
provided to any county as a grant pursuant to this section may not be
used to supplant the current level of county funding for property
tax administration, exclusive of funds received pursuant to the
predecessor State-County Property Tax Loan Program. In order to
participate in the State-County Property Tax Administration Grant
Program, a participating county shall maintain a base staffing,
including contract staff, and total funding level in the county
assessor's office, independent of the grant proceeds provided
pursuant to this section, equal to the levels in the 1994-95 fiscal
year, exclusive of amounts provided to the assessor's office pursuant
to Item 9100-102-001 of the Budget Act of 1994. However, in a county
in which the 1994-95 fiscal year funding level for the assessor's
office was higher than the 1993-94 fiscal year level, the 1993-94
fiscal year staffing and funding levels shall be considered the base
year for purposes of this section. If a county was otherwise eligible
but was unable to participate in the State-County Property Tax Loan
Program in the 1995-96 fiscal year because it did not meet the
funding level and staffing requirements of this paragraph, that
county shall maintain a base staffing, including contract staff, and
total funding level in the county assessor's office equal to the
levels in the 1995-96 fiscal year.
   (2) Prior to the assessor's recommendation for participation in
the State-County Property Tax Administration Grant Program, the
assessor shall consult with the county tax collector, and any other
county agency directly involved in property tax administration, to
develop an identifiable plan for the use of these funds during the
period specified in the resolution by the board of supervisors. This
plan shall be subject to modification and approval of the board of
supervisors.
   (e) In any fiscal year in which the assessor of a county elects
not to participate in the grant program or submits to the board of
supervisors a grant proposal that is less than the applicable amount
specified in paragraph (3) of subdivision (c), any other department
of that county that is responsible for the administration,
allocation, or adjudication of property tax, as defined in Section
95.3, may submit to the board of supervisors an application for the
remainder of the allowable grant amount set forth in paragraph (3) of
subdivision (c). Any grant proposal submitted pursuant to this
subdivision shall include the information specified in paragraph (2)
of subdivision (c), and will be subject to the performance standards
set forth in paragraph (4) of subdivision (c).
   (f) If the funds appropriated by any Budget Act for the purposes
set forth in this section exceed sixty million dollars ($60,000,000),
the excess shall be allocated among participating counties in
proportion to each county's applicable grant share listed in the
schedule set forth in paragraph (3) of subdivision (c). Any
additional funds allocated pursuant to this subdivision shall be
transferred by the Controller to the boards of supervisors of
participating counties at the same time as the transfer of funds
pursuant to paragraph (3) of subdivision (c), and the funds
transferred shall be available for allocation by the board of
supervisors within the county only for the purposes of
administration, allocation, or adjudication of property taxes, as
defined in Section 95.3. Any county receiving funds pursuant to this
subdivision shall be required to comply with the same reporting
requirements as those required for grant funds received pursuant to
subdivision (c).
   (g) A participating county may establish a tracking system whereby
a work or function number is assigned to each appraisal or
administrative activity. This tracking system should provide
statistical data on the number of production units performed by the
county and the positive and negative change in assessed value
attributable to the activities performed by each employee.
   (h) At the request of the Department of Finance, the State Board
of Equalization shall assist the Department of Finance in evaluating
grants made pursuant to this section.
   (i) Notwithstanding Section 95.3, any funds provided to an
eligible county pursuant to this section shall not result in any
reduction of those county property tax administrative costs that are
reimbursable pursuant to Section 95.3.



95.4.  Amounts invoiced pursuant to subdivision (b) of Section 95.2
or its predecessor shall not include the amount of any costs incurred
by the county auditor pursuant to Section 33672.5 of the Health and
Safety Code.