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1996 01 18 HPCL�T a Qr 2 � a r F CF `fit: b OF TNt' HISTORICAL PRESERVATION COMMISSION A Regular Meeting to be Held in the Session Room at the La Quinta City Hall, 78-495 Calle Tampico La Quinta, California January 18, 19946 3:00 P.M. CALL TO ORDER ROLL CALL PUBLIC COMMENT This is the time set aside for citizens to address the Historical Preservation Commission on matters relating to historic resources within the City of La Quinta which are not Agenda items. When addressing the Historical Commission, please state your name and address. When addressing the Commission on matters pertaining to prehistoric sites, do not disclose the exact location of the site(s) for their protection. CONSENT CALENDAR Approval of the Minutes of the Historical Preservation meeting of November 1.6, 1995. BUSINESS ITEMS Context Statement - Outline Archaeological Report -- La Quinta Water Tank Project, Coachella Valley Water District Archaeological report - Rancho La Quinta (Parcel Map 20469) OTHER 1. SB 875 - Historic Tax Credits for seismic retrofitting 2. Discussion of Commission vacancies ADJOURNMENT HPC/AGENDA "'J'U U t' 001 MINUTES HISTORICAL PRESERVATION COMMISSION - CITY OF LA QUINTA A regular meeting held at the La Quints City Hall 78-495 Calle Tampico, La Quinta, California November 16, 1995 I. CALL TO ORDER A. The meeting was called to order at 3:07 P.M. by Chairman Ned Millis II. ROLL CALL A. Chairman Millis requested the roll call. Present: Commission Members Henderson, Puente, Wright, and Chairman Millis. Advisor Lauren Weiss -Bricker was absent. B. Staff Present: Planning Manager Christine di Iorio and Office Assistant: Carolyn Walker. III. PUBLIC COMMENT - None IV. CONSENT CALENDA A. Chairman Millis asked if there were any corrections to the Minutes of July 25, 1995. There being no corrections, it was moved and seconded by Commissioners Henderson/Puente to approve the Minutes as presented. Unanimously approved. Chairman Millis asked if there were any corrections to the Minutes of October 19, 1995. There being no corrections, it was moved and seconded by Commissioners Henderson/Wright to approve the minutes as submitted. Unanimously approved. V. BUSINESS ITEMS A. Desert Sands Unified School District Site Archaeolo icg al Report. HPCI I-16 1. Planning, Manager Christine di Iorio presented the information contained in the staff report, a copy of which is on file in the Community Development Department. 1 Historical Preservation Commission Minutes November 16, 1995 2. Commissioner Henderson asked staff to elaborate on why the report was done under a time constraint. Staff explained the reason for the time constraint was to meet the School District's construction requirements. Discussion followed regarding the record search. 3. There being no further discussion, it was moved and seconded by Commissioners Wright/Puente to approve the report as submitted. Unanimously approved. B. Context Statement 1. Planning Manager Christine di Iorio presented the information contained in the staff report, a copy of which is on file in the Community Development Department. 2. Commissioner Wright stated he felt the list was complete. 3. Commissioner Henderson asked about the list of construction dates for houses in the Cove . Staff stated the City had a GIS program installed and during the instruction process, they discovered they could print a list of all the properties built between 1935 to 1949 in the Cove. 4. Chairman Millis inquired about the capabilities of the GIS program. Discussion followed regarding the areas of research this would open up. VI OTHER A. Staff discussed the seminars that had been attended and stated they had received information on how to prepare the grant for the Historic Survey. 1. Commissioner Henderson asked staff to clarify how many jurisdictions have the Certified Local Government (CLG) certification. Staff stated the information contained in the letter to Mr. Levy of the Coachella Valley Water District, was correct. There currently are only 34 recognized in the State with 13 additional being processed. 2. Chairman Millis asked staff to keep the Commission informed on the different conferences/seminars that are available to them for their edification. Staff stated that in addition, speakers could be invited to address the Commission. Commissioner Henderson stated this would be a good idea and other cities should be invited as well. Staff would look into the possibilities. HPCI1-16 2 ..J.UO 003 Historical Preservation Commission Minutes November 16, 1995 VII. ADJOURNMENT There being no further business, it was moved and seconded by Chairman Millis and Commissioner Wright to adjourn this meeting of the Historical Preservation Commission at 3:26 P.M., to a regular meeting of the Historic Preservation Commission on December 21, 1995. Unanimously approved. HPC11-16 'A.bli 1,004 BI #1 HISTORIC PRESERVATION COMMISSION STAFFREPORT DATE: JANUARY 18, 1996 ITEM: CONTEXT STATEMENT OUTLINE BACKGROUND: Over the past two months, staff has conducted research through local, County, State, and Federal agencies for the preparation of an outline for the historic Context Statement. Many agencies were contacted, with fruitful results from the following entities: Bureau of Land Management Coachella Valley Water District Coachella Valley Historical Museum Indio Public Library Riverside County Land Management Agency University of California, Riverside Riverside Municipal Library Riverside County Parks & Recreation La Quinta Public Library La Quinta Historical Society The attached draft outline of the Statement identifies four main historical context statements: Prehistory and Early Settlement, Resort Industry, Residential Development, and Architectural Styles. Each context statement tends to relate to the others in a historical continuum. An emphasis was placed upon the location and use of primary source materials and documents, as opposed to oral history. Staff will be completing the Context Statement over the next two months, with another draft for HPC review at the February 15, 1996 meeting, and the final draft at the March 21, 1996 meeting. Comments are welcome and encouraged and should be received by staff no later than the February 21, 1996 meeting. Attachments: Draft Context Statement Outline .:Ou, 005 ATTACHMENT Draft Context Statement Outline I. PREHISTORY AND EARLY SETTLEMENT A. Prehistory 1. Early Prehistory - Prior to 1,000 B.P. a. Desert Culture - general summary b. Pre-Cahuilla - general summary 2. Late Prehistory - 1,000 B.P. to 1850 A.D. a. Cahuilla 3. Proto-Historic - 1850 A.D. to 1900 a. Spanish Explorers - de Anza b. Spanish missionaries - Garces and Font c. Land Surveyors and Geologists - Blake, Bowers, Powers d. Stagelines - Bradshaw Stage 1862 to 1896 (William David Bradshaw) e. Railroad - 1876 - Southern Pacific B. Land Grants and Early Settlers 1. Types and Number of Land Grants a. Homesteads, Desert Land Entries, Cash Entries, etc. 2. Surviving Homesteads a. Burkett Homestead b. Ahmanson Ranch c. Marshall Ranch d. Point Happy - Adobe, Store, School District C. Agriculture 1. Date and Citrus Pioneers a. John Marshall - Marshall Ranch b. C. Hunt - Hunt Date Gardens c. Norman "Happy" Lundbeck - Point Happy d. Pederson e. Others 2. Truck Crops, etc. a. Sweet corn, Bermuda onions, Thompson seedless grapes 3. Coachella Canal 2. RESORT INDUSTRY A. La Quinta Hotel 1. Construction - C. N. Sinclair - contractor 2. Owners - Fredrick Clift, Walter H. Morgan 3. Architect - Gordon B. Kaufman 2. Celebrities & marketing B. La Quinta Country Club 1. Leonard B. Ettlesoh - Developer C. Desert Club 1. Glick & Stone - Developer 2. S. Charles Lee, Architect 3. RESIDENTIAL DEVELOPMENT A. Cove -1920 to 1950 1. Subdivision History - Harry Keener, Glick, Frank Stone 2. Infrastructure 3. Social Factors 4. Economic Factors B. Village Commercial Buildings 1. Development: Administration 2. Economic Factors C. Other 4. ARCHITECTURE A. Styles - technical discussion and examples 1. Mediterranean Period - Spanish Revival a. Ahmanson Ranch House b. Village commercial structures c. Cove residential d. La Quinta Hotel - original structures, bungalows, and adobe ruin e. Hunt's Date Garden Adobe (foundations only) f. Point Happy Adobe g. St. Francis of Assisi Church (replication) .A.DC 007 2. Ranch House a. Pederson House 3. International Style a. Rothchild House 4. Others BI #2 HISTORIC PRESERVATION COMMISSION STAFF REPORT DATE: JANUARY 18, 1996 ITEM: MITIGATION OF IMPACTS TO ARCHAEOLOGICAL REMAINS: La Quinta Water Tank Project, Coachella Valley Water District, La Quinta. BACKGROUND: Staff recently received a copy of the archaeological report for a new water tank project proposed by the Coachella Valley Water District. T'he report was prepared by CRM TECH et. al., and is dated July'3, 1995. The report described the implementation of a mitigation program on CA-RIV-5496, an archaeological site., at the request of the Coachella Valley Water District (CVWDI.The project site is located in the southwest corner of Section 17, near Lake Cahuilla County Park. The archaeological site consists of 220 rock cairns* scattered between Section 17 and 20, consisting of both private land and land owned by the Bureau of Reclamation (BOR). The mitigation program is in response to the California Environmental Quality Act (CEQA). The archaeological site had been previously determined to be eligible for National Register Nomination under Criterion D. The National Register criteria is designed to guide State and local governments, Federal agencies, and others in evaluating potential entries in the National Register. The quality of significance in American history, architecture, archaeology, engineering, and culture is present in districts, sites, buildings, structures, and objects that possess integrity of location, design, setting, materials, workmanship, feeling, and association. Criterion D requires that the site has yielded, or may be likely to yield, information important in prehistory or history. The mitigation program is designed to remedy any adverse impacts to the site resulting from the installation of the water tank, as a large number of the rock cairns would be destroyed by the project. *A typical cairn consist of approximately 12 rocks piled on top of each other. The four hypotheses explaining the cairns is that they were associated with (1) big game hunting, (2) served as caches for food or human burials, (3) they were built as boundary markers or trail markers, or (4) they were related to some unknown cultural practice, perhaps ceremonial. All of the cairns are above the highest stand of ancient Lake Cahuilla. The leading hypothesis is that they were associated with big game hunting. RECOMMENDATION: By Minute Motion 96-_ accept for compliance with the California Environmental Quality Act (CEQA), the archaeological report for the La Quinta Water Tank Project, prepared by Bruce Love, CRM TECH, July 3, 1995. Attachments: Archaeological Report (Confidential) 010 BI #3 HISTORIC PRESERVATION COMMISSION STAFFREPORT DATE: JANUARY 18, 1996 ITEM: ARCHAEOLOGICAL REPORT - CULTURAL RESOURCES SURVEY OF THE EASTERN PORTION OF PARCEL 20469 ADJACENT TO RANCHO LA QUINTA COUNTRY CLUB, CENTRAL COACHELLA VALLEY, RIVERSIDE COUNTY, CALIFORNIA. BACKGROUND: On November 22, 1995, staff received the attached archaeological report for the remaining undeveloped portion of the Rancho La Quinta development. The study was conducted by the Archaeological Research Unit, at the University of California, Riverside. A Phase I survey was performed as well as a literature search. Two previously recorded archaeological sites were relocated on the property. In addition, one new historic site, two archaeological isolates, and 15 prehistoric sites were located and recorded. Of the 20 sites observed on the property, 13 of them have been determined to be potentially important cultural resources according to the criteria for inclusion in the California Register of Historical Resources. These 13 sites could be adversely impacted by future development. The report recommends that these sites be evaluated for potential significance that would involve systematic surface collection and subsurface testing operations. The Phase 11 program is required to be completed prior to any soil disturbance such as grubbing or grading activities. RECOMMENDATION: By Minute Motion 96-_ accept for partial compliance with the California Environmental Quality Act (CEQA) and the project conditions of approval, the Phase I archaeological survey report for the eastern portion of Parcel Map 20469, Rancho La Quinta, prepared by M.C. Hall and Steve A. Moffitt, Archaeological research Unit, November 21, 1995. Attachments: 1. Archaeological Report (Confidential) TO: FROM: DATE: RE: Qubt& 0#1 MEMORANDUM Historic Preservation Commissioners Leslie J. Mouriquand, Associate Planner December 15, 1995 Senate Bill 875 Attached is a copy of SB 875 for your information and consideration of support (Attachment 1). The bill proposes to create a tax credit under the Personal Income Tax Law and the Bank and Corporation Tax Law. The credit would be for an amount equal to 10% of the amount paid or incurred during a taxable year for the seismic retrofit of owner -occupied residential structures and 20% for commercial, income -producing structures. It would require that the State Office of Historic Preservation (SHPO) implement an application and certification process for the tax credit. The bill presently is in the Assembly Revenue and Tax Committee and will be considered toward the end of February. A flier from the California Preservation Foundation (CPF) was recently received that encourages support for the Senate Bill (Attachment 2). CPF is soliciting for donations in order to lobby for this bill and other preservation efforts. It is suggested that the HPC forward a letter of support to State Senator Kelley's office, as funds are not available to make a donation at this time. If you would like staff to send a letter supporting SE! 875, please let me know as soon as possible. My telephone number is 777-7068. .J.11 012 PAGE 1 Display 1995-1996 Bill Text - INFORMATION ATTAC H 0VI E N T BILL NUMBER: SB 875 1 BILL TEXT AMENDED IN SENATE JULY 19, 1995 AMENDED IN SENATE JUNE 21, 1995 AMENDED IN SENATE MAY 23, 1995 AMENDED IN SENATE MAY 15, 1995 AMENDED IN SENATE MARCH 28, 1995 INTRODUCED BY Senators Marks and Petrie (Coauthor: Assembly Member Hauser) FEBRUARY 23, 1995 An act to amend Section 29742 ef; to add Sections 142417 142627 24343717 and 24354-11 be Sections 19191 and 19192 of, and to add and repeal Sections 17053.44 and 23644 of, the Revenue and Taxation Code, and to amend Section 1088.5 of the Unemployment Insurance Code, relating to taxation; to take e£feet immediately,- tax levy. LEGISLATIVE COUNSEL'S DIGEST SB 875, as amended, Marks. Income and bank and corporation taxers: deduction" credits and disclosure. The Personal Income 'Pax Law and the Bank and eerperation Tax Saw authorize various deduetiens in computing the ineeme that is subjeet to taxes,- including a deduction for the erdinarp and necessary expenses paid or incurred in a trade or business with respect to lobbying aetivities- This bill would provide under beth laws that only 596 of the amount otherwise deductible shall be allowed as a deduction for certain expenses paid er incurred for lobbying activities in partial eenfermitq with specified federal income tax statutes- Existing law authorizes the Franchise Tax Board to enter into a voluntary disclosure aLgreement with a qualified business entity, as defined, that is bindin2 upon both the board and the business entity. This bill would similarly authorize the Franchise Tax Board to enter into a voluntary disclosure agreement with a qualified shareholder, as defined. The Personal Income Tax Law and the Bank and Corporation Tax Law provide various credits against the taxes imposed by those laws. This bill would provide, until January 1, 2000, a credit under the Personal Income Tax Law in an amount equal to 10% of the amount paid or incurred during the taxable.year for any qualified seismic rehabilitation expenditure, as defined, for the seismic rehabilitation of an owner -occupied residential structure or a principal residence, and, under the Personal Income Tax Law and the Bank and Corporation Tax Law, in an amount equal to 20% of the amount paid or incurred during the taxable or income year for any qualified seismic a.ull_ 01. PAGE 2 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT rehabilitation expenditure for the seismic rehabilitation of commercial, income -producing structures. This bill would require the State Office of Historic Preservation to implement an application and certification program in connection with the credit, and would authorize that office to charge a service fee for the review of requests for certification of seismic rehabilitation activities for projects in excess of $20,000. This bill would limit the aggregate amount of credits allowed under both laws in any calendar year to $5,000,000, except as specified. This biii wenid bake effeet immediately as a tax ievp- Existing law requires each employer to file certain information with respect to new employees with the Employment Development Department, and authorizes the department to use this information for specified purposes,. This bill would additionally authorize the Employment Development_ Department to provide this information to the Franchise Tax Board for purposes of tax enforcement. Vote: 2t3 majority_. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The preservation of California's historical resources is the: responsibility of all citizens and deserving of continued support of the state government. (b) Increasing pressures for development, increasing public use, and deterioration through age and exposure continue to place California's historical resources at risk. (c) Preservation of historical resources stimulates the economy, promotes energy conservation, contributes to the tourism industry, and enhances the quality of life in California. (d) In many areas of California a shift in the location of commercial centers has left many unoccupied historical buildings no longer viable for original uses that have much potential for adaptive reuse. (e) There are problems with many historical buildings meeting current building code requirements for commercial or industrial use. (f) The historical buildings could be used to provide much needed housing. (g) The problems with respect to the historical buildings are exacerbated by the lack of assistance or incentives for seismic safety retrofitting. (h) There is a need to encourage conversion of commercial property no longer viable for commercial uses into much needed housing and mixed -4.�; 0111 " PAGE 3 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT commercial and residential use. (i) The types of rehabilitation for which.a credit is allowed by this act will raise neighborhood values and create new jobs. SEC. 2. Section 17053.44 is added to the Revenue and Taxation Code, to read: 17053.44. (a) For each taxable year beginning on or after January 1, 1995, and before January 1, 2000, there shall be allowed as a credit against the "net tax," as defined in Section 17039, an amount equal to 10 percent of the amount paid or incurred during the taxable year for any qualified seismic rehabilitation expenditure for the seismic rehabilitation of an owner -occupied residential structure,, and 20 percent of the amount paid or incurred during the taxable year for any qualified seismic rehabilitation expenditure for the seismic rehabilitation of commercial, income -producing structures. (b) For purposes of this section: (1) "Qualified seismic rehabilitation expenditure" means any amount for which all of the following apply: (A) The amount is ;properly chargeable to capital account and meets the requirements of Section 47(c)(2)(A)(i) of the Internal Revenue Code, relating to qualified seismic rehabilitation expenditure, or is made in connection with a "principal residence" as that term is used in Section 1034 of the Internal Revenue Code. (B) The amount is for the seismic rehabilitation of a historical building located in this state that was constructed of unreinforced masonry prior to the adoption of local building codes requiring earthquake resistant building design. (C) The amount is restricted to those activities necessary to baring the historical building up to local building codes for seismic safety in accordance with the Secretary of the Interior's Standards for the 'Treatment of Historic Properties, 1992, and the State Historic Building code adopted pursuant to Section 3.04 of Title 19 of the California Code of Regulations. (D) The State Office of Historic Preservation certifies that the amount and the historical building meet the requirements of this section. In this connection, the State. Office of Historic Preservation shall implement an application and certification program, and may charge a service fee for review of requests for certification of seismic rehabilitation activities for projects in excess of twenty thousand dollars ($20,000). The service fee structure adopted by the State Office of Historic Preservation shall be consistent with the service fee structure employed by the National Park Service for processing tax credit applications and certifying property rehabilitation. (2) "Historical building" means a building (and its structural components) that is listed in the California Register of Historical Resources, pursuant to Section 5024.1 of the Public Resources Code. (c) The State Office of Historic Preservation shall do all of the following: (1) Provide forms and instructions for the making of applications for credit certification.. (2) Accept applications, issue a certificate to the taxpayer that certifies the amounts described in subdivision (b) that qualify for the credit, and allocate the aggregate amount of the credit in this section and Section 23644 ."'Ou. 015 PAGE 4 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT until the aggregate amount of the credit has been allocated for each calendar year. (3) Provide an annual listing to the Franchise Tax Board, preferably on magnetic tape or other machine-readable form, and in a form and manner agreed upon by the Franchise Tax Board and the State Office of Historic Preservation, of the taxpayers who were issued the certification. (4) Provide the taxpayer with a copy of the certification to retain for his or her records. (5) Obtain the taxpayer's identification number, or in the case of a partnership, all of the partners' taxpayer identification numbers. For purposes of this paragraph, "taxpayer identification number" includes, but is not limited to, a social security number or, in the case of an entity, a federal employer identification number. Any identification number obtained by the board pursuant to this paragraph shall be utilized for tax administration purposes only. (d) The taxpayer shall do all of the following: (1) Apply to the State Office of Historic Preservation for credit certification. (2) Retain a copy of the certification. (3) Provide a copy of the certification to the Franchise Tax Board upon request. Where the taxpayer fails to comply with the requirement of this paragraph, no credit shall be allowed to that taxpayer under this section for any taxable year unless the taxpayer subsequently complies and can timely file an original or amended return, as applicable. (4) Provide the State Office of Historic Preservation with his or her taxpayer identification number, or in the case of a partnership, all of the partners' taxpayer identification numbers. (e) In the case where the credit allowed by this section exceeds the "net tax," the excess may be carried over to reduce the "net tax" in the following year, and succeeding years if necessary, until the credit is exhausted. (f) The aggregate ,amount of tax credits granted pursuant to this section and Section 23665 shall not exceed the sum of five million dollars ($5,000,000) for each calendar year plus, for each calendar year beginning after 1995, the amount of any credits available pursuant to this section and Section 23665 in any ;preceding calendar year that remains unallocated. (g) This section shall remain in effect only until December 1, 2000, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (c), until the credit is exhausted. BBe- 3- Section 14241 is added to the Revenue and Taxation Bede; to read- 14241s The amendments made by Section 13222 of the Revenue Reconciliation Act of 1993 tP-h- 193-66tT relating to denial of deduction for lobbying expenses,- to Section 149tf} of the fnternal Revenue Bede; relating to disallowance of deduction in certain eases and special r"lea,- shall apply to 66 percent of any ame"nt paid or incurred an or after January l- 1995- sBe- 47 Section 14262 is added to the Revenue and Taxation eede= to read- 142627 The amendments made by Section 13222 of the Revenue PAGE 5 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT Reconciliation Act of 9:993 fP-b- .193-66}7 relating to denial of deduction for lobbying expenses,- to section 162 of the Internal Revenue Bede- relating to trade er business expenecaT shell nppiy to 59 percent of any amount paid or incurred on er after 3anuary 1; 1995- SEC. 3. Section 19191 of the Revenue and Taxation Code is amended to read: 19191 (a) The Franchise Tax Board may enter into a voluntary disclosure agreement with any qualified business entity or qualified shareholder, as defined in Section 19192, that is binding on both the Franchise Tax Board and the qualified business entity or qualified shareholder. (b) The Franchise Tax Board shall do all of the following: (1) Provide guidelines and establish procedures for business entities to apply for voluntary disclosure agreements. (2) Accept applications on an anonymous basis from business entities for voluntary disclosure agreements. (3) Implement procedures for accepting applications for voluntary disclosure agreements through the National Nexus Program administered by the Multistate Tax Commission. (4) For purposes of considering offers from business entities to enter into voluntary disclosure agreements, take into account the following criteria: (A) The nature and magnitude of the business entity's previous presence and activity in this state and the facts and circumstances by which the nexus of the business entity was established. (B) The extent to which the weight of the factual circumstances demonstrates that a prudent business person exercising reasonable care would conclude that the previous activities and presence in this state were or were not immune from taxation by this state by reason of Public Law 86-272 or otherwise. (C) Reliance on the advice of a person in a fiduciary position or other competent advice that the business entity's activities were immune from taxation by this state. (D) Lack of evidence of willful disregard or neglect of the tax laws of this state on the partof the business entity. (E) Demonstrations of good faith on the part of the business entity. (F) Benefits that will accrue to the state by entering into a voluntary disclosure agreement. (5) Act on any application of a voluntary disclosure agreement within 120 days of receipt. (6) Enter into voluntary disclosure agreements with qualified business entities or qualified shareholders, as authorized in subdivision (a) and based on the criteria set forth in paragraph (4). (c) Before any voluntary disclosure agreement becomes binding, the Franchise Tax Board, itself, shall approve the agreement in the following manner: (1) The Executive officer and Chief Counsel of the Franchise Tax Board shall recommend and submit the voluntary disclosure agreement to the Franchise Tax Board for approval.. (2) Each voluntary disclosure agreement recommendation shall be submitted in a manner as to maintain the anonymity of the taxpayer applying for the V i d PAGE 6 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT voluntary disclosure agreement. (3) Any recommendation for approval of a voluntary disclosure agreement shall be approved or disapproved by the Franchise Tax Board, itself', within 45 days of the submission of that recommendation to the board. (4) Any recommendation of a voluntary disclosure agreement that is not either approved or disapproved by the board within 45 days of the submission of that recommendation shall be deemed approved. (5) Disapproval of a recommendation of a voluntary disclosure agreement shall be made only by a majority vote of the Franchise Tax Board. (6) The members of the Franchise Tax Board shall not participate in any voluntary disclosure agreement except as provided in this subdivision. (d) The voluntary disclosure agreement entered into by the Franchise Tax Board and the qualified business entity or qualified shareholder as provided for in subdivision (a) shall to the extent applicable specify that: (1) The Franchise Tax Board shall with respect to a qualified business entity or ccualified shareholder, except as provided in paragraph (4) of sju Lvision (a) of Section 19192 (A) Waive its authority under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001); with respect to the qualified business entity,- to assess or propose to assess taxes, additions to tax, fees, or penalties with respect to each taxable or income year ending prior to six years from the signing date of the voluntary disclosure agreement. (B) With respect to each of the six taxable or income years ending immediately preceding the signing date of the voluntary disclosure agreement, based on its discretion, agree to waive any or all of the following: (i) Any penalty related to a failure to make and file a return, as provided in Section 19131. (ii) Any penalty related to a failure to pay any amount due by the date prescribed for payment, as provided in Section 19132. (iii) Any addition to tax related to an underpayment of estimated tax, as provided in Section 19136. (iv) Any penalty related to Section 6810 or subdivision (a) of Section 8810 of the Corporations Code, as provided in Section 19141. (v) Any penalty related to a failure to furnish information or maintain records, as provided :in Section 19141.5. (vi) Any addition to tax related to an underpayment of tax imposed under Part 11 (commencing with Section 23001), as provided in Section 19142. (vii) Any penalty related to a partnership required to file a return under Section 18633, as provided in Section 19172. (viii) Any penalty related to a failure to file information returns, as provided in Section 19183. (ix) Any penalty related to relief from contract voidability, as provided in Section 23305.1. (2) The qualified business entity or qualified shareholder shall: (A) With respect to each of the six taxable or income years ending immediately preceding the signing date of the written agreement: (i) Voluntarily and fully disclose on the business entity's application all material facts pertinent to the business entity's and shareholder's liability for any taxes imposed under Part 10 (commencing with .a. - O1c' PAGE 7 Display 1995-1996 Brill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT Section 17001) or Part 11 (commencing with Section 23001). (ii) Except as provided in clause fiiit paragraph (3), within 30 days from the signing date of the voluntary disclosure agreement: (I) File all returns required under this part, Part 10 (commencing with Section 17001). or Part 11 (commencing with Section 23001). (II) Pay in full any tax, interest, and penalties (other than those penalties specifically waived by the Franchise Tax Board under the terms of the voluntary disclosure agreement) imposed under this part, Part 1.0 (commencing with section 17001), or Part 11 (commencing with Section 23001) in a manner as may be prescribed by the Franchise Tax Board. fiii} The Franchise 'Pax Beard may extend the time fer filing returns and paying amounts due to l29 days from the signing date of the voluntary dise�lesure agreement.- (B) Agree to comply with all franchise and income tax laws of this state in subsequent income or taxable years by filing all returns required and paying all amounts due under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001). (3) The Franchise Tax Board may extend the time for filing returns and paying amounts due to 120 days from the signing date of the voluntary disclosure agreement. SEC. 4. Section 19192 of the Revenue and Taxation Code is amended to read: 19192 For purposes of this article: (a) (1) "Qualified business entity" means an entity that is all of the following: (A) An entity that is any of the following: (i) A corporation, as defined in section 23038. (ii) A bank, as defined in Section 23039. (B) A business entity, including any predecessors to the business entity, that previously has never filed a return with the Franchise Tax Board pursuant to this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23011). (C) A business entity, including any predecessors to the business entity, that previously has not been the subject of an inquiry by the Franchise Tax Board with respect to liability for any of the taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (D) A business entity that voluntarily comes forward prior to any unilateral contact from the Franchise Tax Board, makes application for a voluntary disclosure agreement in a form and manner prescribed by the Franchise Tax Board, and makes a full and accurate statement of its activities in this state for the six immediately preceding taxable or income years. (2) (A) Notwithstanding paragraph (1), a qualified business entity does not include any of the following: (i) A business entity that is organized and existing under the Laws of this state. (ii) A business entity that is qualified or registered with the office of the Secretary of State. (iii) A business entity that maintains and staffs a permanent facility in this state. (B) For purposes of this paragraph, the storing of materials, goods, or PAGE 8 Display 1995-1996 Brill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT products in a public warehouse pursuant to a public warehouse contract does not constitute maintaining a permanent facility in this state. (3) "Qualified sha:reholder" means an individual that is all of the following: .(A) A nonresident on the signing date of the voluntary disclosure agreement. A shareholder of an S corporation (defined in Section 238001_ that has applied for ;a voluntary disclosure agreement under this article under which all material facts pertinent to the shareholder's liability would be disclosed on that S corporation's voluntary disclosure .agreement as required under clause is of subparagraph _C81 of paragraph of subdivision jq_L of Section 19191. Notwithstanding paragraph (3), subparagraph (B) of paragraph_ of subdivision �Z of Section 19191 shall not apply to any of the six taxable years immediately preceding the signing date that the qualified shareholder was a California resident required to file a California tax return, nor to any penalties or additions to tax attributable to income_ other than the California source income from_ the S corporation that filed an application under this article. (b) "Signing date" of the voluntary disclosure agreement means the date on which a person duly authorized by the Franchise Tax Board signs the agreement. SEC. 5. Section 23644 is added to the Revenue and Taxation Code„ to read: 23644. (a) For each income year beginning on or after January 1, 1995, and before January 1, 2000, there shall be allowed as a credit against the "tax," as defined in Section 23036, an amount equal to 20 percent of the amount paid or incurred during the income year for any qualified seismic rehabilitation expenditure for the seismic rehabilitation of commercial, income -producing structures. (b) For purposes of this section: (1) "Qualified seismic rehabilitation expenditure" means any amount for which all of the following apply: (A) The amount is properly chargeable to capital account and meets the requirements of Section 47(c)(2)(A)(i) of the Internal Revenue Code, except that the reference therein to Section 168 of the Internal Revenue Code shall be deemed a reference to the pertinent depreciation provisions of Article 1 (commencing with Section 24341) of Chapter 7. (B) The amount is for the seismic rehabilitation of a historical building located in this state that was constructed of unreinforced masonry prior to the adoption of local building codes requiring earthquake resistant building design. (C) The amount is restricted to those activities necessary to baring the historical building up to local building codes for seismic safety in accordance with the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1992, and the State Historic Building Code adopted pursuant to Section 3.04 of Title 19 of the California Code of Regulations. (D) The State office of Historic Preservation certifies that the amount and historical building meet the requirements of this section. In this n26 PAGE 9 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT connection, the State Office of Historic Preservation shall implement an application and certification program, and may charge a service fee for review of requests for certification of seismic rehabilitation activities for projects in excess of twenty thousand dollars ($20,000). The service fee structure adopted by the State Office of Historic Preservation shall be consistent with the service fee structure employed by the National Park Service for processing tax credit applications and certifying property rehabilitation. (2) "Historical building" means a building (and its structural components) that is listed in the California Register of Historical Resources, pursuant to Section 5024.1 of the, Public Resources Code. (c) The State Office of Historic Preservation shall do all of the following: (1) Provide forms and instructions for the making of applications for credit certification. (2) Accept applications, issue a certificate to the taxpayer that certifies the amounts described) in subdivision (b) that qualify for the credit, and allocate the aggregate amount of the credit in this section and Section 17053.44 until the aggregate amount of the credit has been allocated for each calendar year. (3) Provide an annual listing to the Franchise Tax Board, preferably on magnetic tape or other machine-readable form, and in a form and manner agreed upon by the Franchise Tax Board and the State Office of Historic Preservation, of the taxpayers who were issued the certification. (4) Provide the taxpayer with a copy of the certification to retain for his or her records. (5) Obtain the tax:payer's identification number, or in the case of a partnership, all of the partners' taxpayer identification numbers. For purposes of this paragraph, "taxpayer identification number" includes, but is not limited to, a corporate identification number, or a federal employer identification number. Any identification number obtained by the board pursuant to this paragraph shall be utilized for tax administration purposes only. (d) The taxpayer shall do all of the following: (1) Apply to the State Office of Historic Preservation for credit certification. (2) Retain a copy of the certification. (3) Provide a copy of the certification to the Franchise Tax Board upon request. Where the taxpayer fails to comply with the requirement of this paragraph, no credit shall be allowed to that taxpayer under this section for any income year unless the taxpayer subsequently complies and can timely file an original or amended return, as applicable. (4) Provide the State Office of Historic Preservation with its taxpayer identification number, or in the case of a partnership, all of the partners' taxpayer identification numbers. (e) In the case where the credit allowed by this section exceeds the "tax," the excess may be carried over to reduce the "tax" in the following year, and succeeding years if necessary, until the credit is exhausted. (f) The aggregate amount of tax credits granted pursuant to this section and Section 17053.65 shall not exceed the sum of five million dollars .,d.,, 021 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT PAGE 10 ($5,000,000) for each calendar year plus, for each calendar year beginning after 1995, the amount: of any credits available pursuant to this section and Section 17053.65 in any preceding calendar year that remains unallocated. (g) This section shall remain in effect only until December 1, 2000, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (c), until the credit has been exhausted. Seev 67 Section 23142 of the Revenue and Taxation cede is amended to read- 23442- fa} Per the purposes of this part -- fit Except as provided in paragraph f2}- every organization exempt from taxation under Section 29494 and every trust treated as a private foundation beeause of Section 4944fa}fl} of the internal Revenue eede shall file an annual return,- stating specifically the items of gross ineeme; receipts- and disbursements; and any ether information far the purpese of carrying cut the laws under this part as the Franchise Pax Beard may by rules or regulations preseribe- and shall keep these reeerds; render under eath these statements; make any ether returns; and comply with any rules and regulations as the Franchise 'Pax Beard may from time to time preseribe- The return shall be filed an or before the 15th day of the fifth full calendar month following the close of the income year- f2} Bxeeptiens from filing-- fA} Mandatary exeeptiens--Paragraph fit shall net apply to -- tit ehurehes; their integrated auxiliaries,- and conventions or association of ehurehes- fii} Any organization father than a private foundation as defined in Bastian R3499}7 the gross receipts of which in each taxable year are normally net more than twenty-five thousand dollars f$257888}; or fiii} The exclusively religions activities of any religious erder- fB} Biseretienary exeeptiens--The Franchise Tax Beard may permit the filing of a simplified return for erganizatiens based an either gross receipts or total assets er both gross receipts and total assete; or may permit the filing of on information statement {without fee}; or may permit the filing of a group return for incorporated or unincorporated branches of a state or national erganizatien.where it determines that an information return is not necessary to the efficient administration of this part- f3} An organization that is required to file an annual information return shall pay a filing fee of ten dollars f$10} an or before the due date for filing the annual information return {determined with regard to any extension of time far filing the return} required by this seetien- In ease of failure to pay the fee an or before the due date unless it is shown that the failure is due to reasonable cause,- the filing fee shall be twenty -fire dollars fg25}7 All collection remedies provided in Article 5 feemmencing with Section 18661} of chapter R of Part •.��. C22 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 PAGE 11 BILL TEXT 1972 shall be applicable to eelleetien of the filing feel Hewever; the filing fee shall net apply to the organization described in paragraph f4}7 f4f Paragraph f3t shall net apply ter fAt a religions organization exempt under Section 234e1d; fBj an educational organization exempt under Section 234e4d- if the organization normally maintains a regular faculty and curriculum and normally has a regularly organized body of pupils or students in attendance at the place where its educational activities are regularly carried eng fe} a charitable erganizatien,- or an organization fer the prevention of cruelty to children or animals; exempt under Section 2949ld; if the organization is supported- in whole or in part,- by funds contributed by the United States or any state or political subdivision thereof; or is primarily supported by contributions of the general public; fB} an organization exempt under Section 234e}d,- if the organization is operated,- supervised,- or controlled by or in connection with a religions organization described in subparagraph fA}- fbt Every organization described in Section 239eld which is subject to the requirements of subdivision fat shall furnish annually infermatien- at the time and in the manner as the Franchise 'Pax Beard may by rules er regulations preseribe- setting forth the followings {lt its gross income far the year.- f2t its expenses attributable to its grass income and incurred within.theyear- f3t its disbursements within the year for the purposes for which it is exempt.- f4t A balance sheet showing its assets; liabilities; and net worth as of the beginning of the year7 f59 The total of the contributions and gifts received by it during the year; and the names and addresses of all substantial eontributera- f6t The names and addresses of its foundation manager fwithin the meaning of Bastian 4946 of the internal Revenue lode} and highly compensated empieyeea- f9} The compensation and ether payments made during the year to each individual described in paragraph f6}- t8t in the ease of an organization with respect to which an eieetion under Section 23994-5 is effective for the taxable year, - the following amounts for the organization for that taxable year- tht The lobbying expenditures fas defined in Section 2344efetflt- fBt The lobbying nontaxable amount tea defined in Section 23446fettBtt7 fet The grassroots expenditures tea defined in Section 23449fctt3tt7 t9t the grassreots nontaxable amount fas defined in Seetien. 23449feff4}}7 Per purppeses of this paragraph; if Section 2344efft applies to the organization far the taxable year; the organization 02U Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SE 875 PAGE 12 BILL TEXT shall furnish the amounts with respect ea the affiliated group as well as with respect to the organization- f9t Any ether information with respect to direct or indirect transfers to- and ether direct or indirect transactions and relationships with,- ether organizations described in Sections 23491a to 23491w; inclusive tether then Sections 234S1d7 23491k- and 23481tt7 as the Franchise 'Pax Beard may require to prevent either of the fallowing- *At Biversien of funds from the erganizatien<s exempt purpese- fBt Misallocation of revenue er expense,- and fig} Any ether relevant information as the Pranehise Tax Board may prescribe.- fet In addition to the above annual return any organization which is required to file an annual report under Section 6956 of the Internal Revenue eede will furnish a eery of the report to the Franchise 'Pax Beard at the time the annual return is due. - felt fit fAt If this subdivision applies to an organization for any income pear,- the organization shall- fit Include on any return required to be filed under subdivision fat far that year information setting forth the total expenditures Of the erganizatien to which Section 162fetflt of the Internal Revenue eede applies and the total amount of the dues or ether similar amounts paid to the erganizatien to which these expenditures are alloeable- fiit Except as provided in clause fit of subparagraph fAt of paragraph f2t and paragraph fat- at the time of assessment or payment of the dues or ether similar amounts; provide notice to each person making that payment which contains a reasonable estimate of the portion of the dues or ether similar amounts to which these expenditures are se alleeable- fBt fit This subdivision shall apply to any organization that is exempt from taxation under this part ether than an erganizatien described in Section 23491d- fiit This subdivision shell net apply to the in-house expenditures fwithin the meaning of Section 162fettStfBtfiit of the internal Revenue eede�h of an organization for an income year if these expenditures de net, exceed two thousand dollars f$27989t- In determining whether a taxpayer exceeds the two thousand dollar f$27988t limit under this elapse; there shall net be taken into account overhead costa Otherwise allocable to activities described in subparagraphs fAt and fBt of Section l62 fat fit of the Internal Revenue eede.- fet Per purposes of this paragraph - fit expenditures to which Section 162fetflt of the Internal Revenue eede applies shall be treated as paid eat of dues or ether similar amounts to the extent thereef- fiit If expenditures to which Section 162fetflt of the Internal Revenue code applies exceed the defies or ether similar amounts for any income year; that excess shall be treated as expenditures to which Section 162fett3:t of the Internal Revenue eede applies which A_ 024 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 PAGE 13 BILL TEXT are paid or incurred by the organization daring the following ineeme yearn f2} fA} If an organization - fit Bleats net to provide the notices described in subparagraph fA} of paragraph fit for any income year; or fii} Pails to include in the notices the amount allocable to expenditures to which Section 162fe}fl} of the Internal Revenue Bede applies fdetermined an the basis of actual amounts rather than the reasenable estimates under clause fii} of subparagraph fA} of paragraph fl}}- then there is hereby imposed an that organization for the ineeme year a tax in an amount equal to 56 percent of the product of the rate of tax imposed by Seetien 23151 for the ineeme year and the aggregate amennt net included in these notices by reason of that election or failure- fB} The Franchise Tax Beard may waive the tax imposed by elause fii} of subparagraph tA} fer any ineeme year if the erganizatien agrees to adjust its estimates under clause fii} of subparagraph fA} of paragraph fit for the following ineeme year to correct any failures.- fC} Per purposes of this part; the tax imposed by subparagraph fA} shall be treated in the same manner as a tax imposed by Chapter 2 feemmencing with Section 231B1}- relating to the Bank and Cooperation Franchise Tax7 f3} Subparagraph fA} of paragraph fit shall net apply to an erganizatien which establishes to the satisfaction of the Franchise Tax Beard that substantially all of the dues or ether similar amounts paid by persens to the organization are net deductible without regard to Section 162fe} of the Internal Revenue Cede. - fat Per the purposes of this Part — fit In the ease of a failure to file a return required under this section on the date and in the manner prescribed therefor fdetermined with regard to any extension of time for filing}; unless it is shown that the failure is due to reasonable eause; there shall be paid fen netiee and demand by the Franchise Tax Beard and in the same manner as tax} by the exempt erganizatien or trust failing se to file,- five dollars f$5} fer each menth or part thereof during whieh that failure eenbinues- but the total amennt imposed hereunder en any erganizatien for failure to file any return shall net exceed forty dollars f$49}7 f2} The Franchise Tax Beard may make written demand open a private foundation failing to file under paragraph fit of this subdivision or subdiviVen fe} specifying therein a reasonable future date by which the filing shall be made; and if that filing is net made on or before that date,- and unless it is shewn that failure as to file is due to reasonable eause- there shall be paid fen notice and demand by the Franchise Tax Beard and in the same manner as tax} by the person failing se to file,- in additien to the penalty prescribed in paragraph fQ7 a penalty of five dollars f$5} each month or part thereof after the expiratien of the time specified in the written demand during which the failure 025 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 BILL TEXT PAGE 14 eentinueaT but the total amount imposed hereunder an all persons far that failure to fire shall net exceed twenty-five dollars t$25tT If more than one person is liable ender this paragraph for a failure to filer all: these persons shall be jointly and severally liable with respect to the failure- The term upersenu as used herein means any af£ieerT direeterT trusteeT employee- memberT er ether individual who is under a duty to perform the act in respeet of which the vielatien eeeera- tft The reporting requirements and penalties shall be applicable far income years beginning after Beeember 917 1949T except that the previsions of subparagraph fBt of paragraph t2t of subdivision tat shell apply to income years ending after Beeember 317 19497 sHe- 77 Section 2434371 is added to the Revenue and Taxation eedeT to read- 24343-1- The amendments made by Bastian 13222 of the Revenue Reeeneiliatien Act of 1993 tP-b- 193-66t7 relating to denial of dedeetien for lebbyineexpensesT to section 162 of the internal Revenue eedeT relatine to trade er business expensesT shall apply to 59 percent of any amount paid or incurred an or after January l- 1995- sHe- 87 Bastian 24357-11 is added to the Revenue and Taxation eedeT to read- 249577117 tat Only 59 percent of the amount otherwise allowable as a deduetien shall be allowed under section 24957 far a eentribetien to an erganizatien that conducts activities to which Bastian 162tettlt of the internal Revenue eede applies an matters of direct financial interest to the dener+a trade or business,- if a principal purpose of the eentribetienwas to avoid the tax imposed by this part by assuring a deduction far these activities ender Section 24964 that would be disallowed by reason of section 162tet of the internal: Revenue eode if the donor had eenducted these activities direetly- fbt only 58 percent: of the amount otherwise allewable as a deduction shall be allowed under section 243437 based an the application of Bastian 162tat of the internal Revenue eedeT far any amount far which a deduction is disallowed under subdivision tatT tat This seetien shall apply to any amount paid or incurred an or after 3anuary 17 19957 SHe- 9- This act provides for a tax levy within the meaning of Article IV of the E!enstitetien and shall go into immediate effeet- SEC. 6. Section 108,8.5 of the Unemployment Insurance Code is amended to read: 1088.5. (a) In addition to information reported in accordance with Section 1088, each employer shall file, with the department, the information provided for in subdivision (b) on new employees. (b) Each employer shall report all of the following information to the department: (1) The hiring of any person who resides or works in this state to whom the employer anticipates paying earnings. n V 6 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SB 875 PAGE 15 BILL TEXT (2) The rehiring or return to work of any person who has been laid off, furloughed, separated, granted a leave without pay, or terminated from employment, and to whom the employer anticipates paying wages. (c) Employers shall not be required to report on any of the following persons: (1) Any person whom the employer pays wages of less than three hundred dollars ($300) each month. (2) Any person who is under 18 years of age. (d) (1) The department and the State Department of Social Services, jointly, shall adopt rules and regulations to establish exemptions in addition to those provided in subdivision (c), if the department and the State Department of Social Services determine the exemptions are needed to reduce unnecessary or burdensome reporting or are needed to facilitate cost-effective operation of this section. (2) The department and the State Department of Social Services shall adopt regulations required ;pursuant to paragraph (1) by April 1, 1993. (e) (1) Employers shall submit a report within 30 days of the hiring, rehiring, or return to work of any person on whom the employer is required to report pursuant to this section. (2) The report shall contain all of the following: (A) The first initial and last name and social security number of the person. (B) The employer's name, address, and state employer identification number. (3) The report required by Section 1088 shall not be accepted in lieu of the report required by this section. (f) Employers may :report pursuant to this section, by submitting a copy of the employee's W-4 foam, a form provided by the department, or any other hiring document, by mail or telefaxing or by any other means that is authorized by the department and that will result in timely reporting. (g) The department shall retain information collected pursuant to this section for no more than 180 days after the end of the calendar quarter, except for purposes of enforcement of subdivision (i). (h) The department may use the information collected pursuant to this section only for the :following purposes: (1) The administration and enforcement of this section. (2) The identification, prevention, and collection of benefit overpayments pursuant to any of the following provisions: (A) Article 4 (commencing with Section 1375) of Chapter 5.. (B) Article 5(commencing with Section 2735) of Chapter 2 of Part 2. (C) Section 3751. (D) Section 4751. (3) The location of noncustodial parents or the income of noncustodial parents. (4) The identification of errors in employer reports of wages filed pursuant to Section 1088. (5) The verification of employment of applicants for, and recipients of, services under the Aid to Families with Dependent Children program or the Food Stamp Program, provided for pursuant to Chapter 2 (commencing with Section 11200) of Part 3 and chapter 10 (commencing with Section 18900) of Part 6, 027 PAGE 16 Display 1995-1996 Bill Text - INFORMATION BILL NUMBER: SE 875 BILL TEXT respectively, of Division 9 of the Welfare and Institutions Code. Providing employer or employee information to the Franchise Tax Board, upon the request of that board, for the purpose of tax enforcement. (i) The department shall provide a written notice to any employer for the employer's first failure to report any new hire, rehire, or return to work of an employee. For each subsequent failure to report as required by this section that occurs after the date the employer receives notice from the department of his or her first failure to report, an employer shall be subject to a penalty of two hundred fifty dollars ($250). (j) The department shall not enforce the employer reporting requirements of this section until April 1, 1993, or when regulations are adopted pursuant to subdivision (d), whichever is sooner. (k) For purposes of this section, "wages" means the same as defined in Section 926 of the Unemployment Insurance Code. A. 02e ATTACHMENT 2 OF CALIFORNIA PRESERVATION FOUNDATION NEW YEAR'S RESOLUTION: Prevent this from happening in 1996! Join Us in this New Year's Resolution: "Historic Tax Credits for Seismic Retrofitting will be Approved and the Voice of Historic Preservation in California will be Strengthened in 1996!" Recently our staff spent ten days in the Los Angeles area gathering lessons learned from the Northridge earthquake. While, for the most pan, the concerns of preservationists were listened to and acted on as never before, the unnecessary loss of so much historic fabric was still quite saddening. The Henshey's department store building in Santa Monica, the Masonic Temple in Fillmore, and most of the homes in the National Register -eligible Harold Way district of Hollywood were among the hundreds of severely damaged historic buildings that were demolished. The overwhelming majority of these demolished buildings had NOT been seismically retrofitted. Had owners of these historic resources taken preventive measures, much of the damage could have been avoided or greatly reduced. However, seismic strengthening is expensive and there are few financial incentives available, especially for individual homeowners who need to secure their homes onto the foundations. At last, SB 875, sponsored by State Senators Milton Marks and Nicholas Pettis, has been introduced to provide for a tax credit of 10 percent for residential and 20 percent for non-residential for the costs of seismic strengthening of historic properties. SB 875 is being actively supported by the California Preservation Foundation (CPF). It is one of the only bills to come along this year to give financial incentives to owners of historic buildings for this necessary and important work, and its passage is vital to the preservation community. This Year -End Appeal is a reminder that ,is California's only statewide non-profit historic preservation organization, CPF provides a link between your interests and the State Legislature. Our constant vigilance in the legislative arena is more important than ever this coming year. SB 875 is just one of the legislative issues with which we will be actively involved. With the rise of the "property rights" movement and attacks on government regulations, we anticipate a barrage of threats to the California Environmental Quality Act (CEQA), one of the preservationists' most important tools. Another of CPF's most critical projects, the lawsuit against AB 1:33, the "church bill," will also come to a head in 1996. This bill set up a special class of property types and exempts them from local land use regulations. The precedents established by this bill are being opposed by a coalition of organizations, including the League of California Cities. We expect a court hearing in March. To better represent your interest in these issues. CPF is working to expand its Legislative Action Network to set up a fast response system via fax throughout California. In 1996, CPF Board and staff want to devote significant energies to using this network to carry your interests to the halls of the State Capitol, and making sure that the preservationists' views are considered. But we cannot succeed unless we have your continued financial support. And the best way to express your support is by making a generous, end -of -the -year, tax-deductible donation to CPF. Make this one of your New Year's Resolutions — strengthen the voice of historic preservation in California —and give a year-end donation to CPF. Cover: Earthquake damage in the city of Fillmore 02c- o #2 HISTORIC PRESERVATION COMMISSION STAFFREPORT DATE: JANUARY 18, 1996 ITEM: COMMISSION VACANCIES BACKGROUND: Staff has been trying to fill a vacancy created with the resignation of Commissioner Drew Pallette. The City advertised for professionally -qualified applicants but received only one application. It was discovered that there was no standing Council resolution permitting non-residents to be appointed to the Commission, and that such a resolution would the required prior to appointment of a non-resident applicant. On December 19, 1995, the City Council adopted Resolution 95-97 approving the advertisement for appointment of three professionally -qualified individuals who are either residents or non-residents of the City of La Quinta to the Historic Preservation Commission. A copy of this new policy is attached. A second vacancy on the Historic Preservation Commission was created when Commissioner Terry Henderson was appointed to the City Council on December 19, 1995. Mrs. Henderson's appointment was for a lay member to the Commission and as such should not be as difficult to fill as will the professionally - qualified seats. The City Clerk will be readvertising for the appointments in the near future with interviews by the City Council scheduled for February 6, 1996. Attachment 2 contains Mrs. Henderson's letter of resignation, dated January 5, 1996. Attachments: 1. Resolution 95-97 2. Letter of resignation f!3r J ATTACHMENT 1 RESOLUTION 95-97 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE ADVERTISEMENT FOR APPOINTMENT OF THREE PROFESSIONALLY - QUALIFIED INDIVIDUALS WHO ARE EITHER RESIDENTS OR NON-RESIDENTS OF THE CITY OF LA QUINTA, TO THE HISTORIC PRESERVATION COMMISSION HISTORIC PRESERVATION RECRUITMENT POLICY WHEREAS, the City Council of the City of La Quinta, California, did, on the 19th day of December, 1995, set a permanent policy to permit the acceptance of applications and appointments from a list of professionally -qualified candidates to the Historic Preservation Commission; and, WHEREAS, at said public meeting the City Council did find the following facts to justify the approval of recruitment of non-residents for those Commission members who must be professionally qualified as per the requirements of the City's certification in the Certified Local Government Program: The recruitment for professionally qualified Historic Preservation Commissioners is required by the Certified Local Government Program. 2. The City has historically had difficulty in obtaining applications from professionally qualified residents due to the small population of the City. 3. Suspension of the residency requirement for the professional commissioner seats would allow for qualified individuals from outside La Quinta to be appointed to the Commission. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California as follows: That the above recitations are true and correct and constitute the findings of the City Council in this case. PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta City Council held on this 19th. day of December, 1995, by the following vote, to wit: RESOCC. 166 -J, n 31 Resolution 95-97 AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Bangerter NOES: None ABSENT: None ABSTAIN: None GLENDA BANGERTER, yor City of La Quinta, Califo a A ST: i AUNDRA L. U OLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: --(J&�, ✓ /_ : o —, it/%� o y/ 2 DAWN HONEYWELL, City Attorney City of La Quinta, California RESOCC.166 AT TERRY HENDERSON 54-711 EISENHOWER DR. LA QUINTA, CA 92253 619-564-2925 FAX 619-564-1625 Janua4y 5, 1995 City oj, La Quinta Hiatotiic PtezeAvation Commioaion P.O. Box 1504 La Quinta, CA 92253 Attention: LezUe Mowtiquand TACHMENT 2 `x rJANU08 Ao you are aware, it iJ nece&oany Doti me to he,.�ign my pooition a5 a commijoionv� on the H, �c P1eseAuation Commiooion. It has been a pieaaune being involved in the evolution o4 La Quinta'o veliy own Hiatmie P44neAwation Commiesion and the p4oce�,5 o4 becoming a Ce tiU" Locat Government. I have aeeenity opoken with, Ka en Pinozzi, new appointee to the Patm Sptingo HisWue Cornmimaion, concehning the CLG p4og)am and {,eel that any e4otit that we can make in ayoi4ting them (n any other, of our uaUey 5i5ten eitior in thin direction would czuainty be beneigiciat. M a matteA-oj,-(,act it may be woath our while to joint ventwce thin ewu. La Quinta it ve4y limited in it,5 hiAt y, ce/itainty what we have i6 near, dean. and pteciou4, howeveA, we are in jo many waya "The Coachella Valley" - hi6toucaily. Yew, we (the cities) aU have our own uniquene,5o. Ce4tain4y we mint do all we can to maintain that which is ou46. La Quinta i6 600tunate in that it ham the La Quinta Hi/Amical Society which has been ditigent in U5 e4OU6 to this. Maybe the Comm y,40n ahould opeatkead a joint meeting with the odwA valley ottieo and ki6tmicai 5ocietie/5 to co-ordinate e6�. At any bate with the HistOM.0 Pte/)ervation Element adopted and a pcwt o{ the Gene4d Plan Ot the City o4 La Quinta and with the completion 4 the up -coming Gty-wide Swwey the Comml56ion, in my opinion, needy to evatuate its woath. Sineeliety, Tewcy H�on