1996 01 18 HPCL�T
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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
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-
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.
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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
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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
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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
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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
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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'
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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
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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
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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
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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
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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
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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
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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
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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.
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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,
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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