1996 02 08 HPCT
La� 'c7
� a
CFyOF
HISTORICAL PRESERVATION COMMISSION
AGENDA
A Special Meeting to be
Held in the Session Room at the
La Quinta City Hall, 78-495 Calle Tampico
La Quinta, California
February 8, 199� (o
3:00 P.M.
CALL TO ORDER
ROLL CALL
PUBLIC COMMENT
This is the time set asid'ie 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 16, 1995.
BUSINESS ITEMS
1. Context Statement - Outline
2. Archaeological Report -- La Quinta Water Tank Project, Coachella Valley Water District
3. Archaeological report - Rancho La Quinta (Parcel Map 20469)
4. Archaeological Report - Desert Sands Unified School District Administrative Center
OTHER
1. SB 875 - Historic Tax Credits for seismic retrofitting
2. Discussion of Commission vacancies
ADJOURNMENT
HPC/AGENDA "g'v v 001
MINUTES
HISTORICAL PRESERVATION COMMISSION - CITY OF LA QUINTA
A regular meeting held at the La Quinta 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, Puerile, 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
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.
A. Desert Sands Unified School District Site Archaeological Report.
HPC11-16
a
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.
HPCII-16 2 *.,u L 0 0 0 3
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.
HPCI1-16
,�� 0 0 �t
Lw 'cce-iht 4 Qum&
V — D
BI#1
HISTORIC PRESERVATION COMMISSION
STAFF REPORT
DATE: FEBRUARY 8, 1996
ITEM: CONTEXT STATEMENT OUTLINE
BACKGROUND:
Over the past three 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. Comments are welcome and
encouraged and should be received by staff no later than the March 21, 1996 meeting in order to stay on
schedule.
Attachments:
Draft Context Statement Outline
w'.0 005
Draft Context Statement Outline
1. 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
^�� 006
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. Ettleson - 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)
-�� 1107
2. Ranch House
a. Pederson House
3. International Style
a. Rothchild House
4. Others
.Ju; 008
F � Z
C -
N OF TNt"
HISTORIC PRESERVATION COMMISSION
f,9fA2211411131
DATE: FEBRUARY 8, 1996
ITEM: MITIGATION OF IMPACTS TO ARCHAEOLOGICAL REMAINS: La Quinta Water
Tank Project, Coachella Valley Water District, La Quinta.
BACKGROUND:
AM
Staff recently received a copy of the archaeological report for a new water tank project proposed by the
Coachella Valley Water District. The report was prepared by CRM TECH at. 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 (CVWD).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 0 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.
.u�u. 00g
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) Mailed with the January 18, 1996 packet.
010
La ° r
9 �a�
U D
w
BI#3
CR'y OF TNt���.
HISTORIC PRESERVATION COMMISSION
STAFF REPORT
DATE: FEBURARY 6, 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 undevelloped
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 II 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:
Archaeological Report (Confidential) Mailed with the January 16, 1996 packet.
a
F Z W
BI#4
OF TNt
HISTORIC PRESERVATION COMMISSION
STAFF REPORT
DATE: FEBRUARY 8, 1996
ITEM: ARCHAEOLOGICAL REPORT: AN ARCHAEOLOGICAL SURVEY OF THE DESERT
SANDS UNIFIED SCHOOL DISTRICT EDUCATIONAL SERVICES CENTER
PROJECT (PUP 95.016)
BACKGROUND:
On January 29, 1996, staff received the archaeological report for the Desert Sands Unified School District
Educational Services Center project. The report presents the results of a Phase I reconnaissance survey
for prehistoric and historic resources visible on the surface of the ground. The study area consisted on
24.5 acres located west of Jefferson Street, north of Avenue 48, and east of Dune Palms Road.
The survey was conducted in compliance with the Conditions of Approval for the Educational Services
Center submitted as Public Use Permit 95-016, and the requirements of the California Environmental
Quality Act.
Two lithic flakes were reported found near the southern border of the project site during the survey. No
other artifactual material was observed by the consultant. Mention is made in the report of the cache of
late prehistoric pot sherd found by staff in October of 1995. The sherds were mailed to the consultant in
December for review and inclusion in the report, however, the package never arrived at the consultant's
address. Presumably, it is lost in the mail. The package contained 38 pieces of pottery that consisted of
mostly local Tizon Brownware and a few pieces of local Salton Buff ware. The sherds were not significant
in any respect, but rather represented common utilitarian vessels.
Because the project site is surrounded by 51 recorded archaeological and historical sites within a two mile
radius, and because the project site consists of shifting sand dunes, the consultant has recommended that
all earth -moving activities be monitored by a qualified archaeologist. In fact, staff has been informed by the
consultant that grading has begun and that they have been contracted with by the school district to
provide monitoring services. A report of the monitoring activities will be prepared and submitted to the City
upon completion of the monitoring duties.
The report appears complete and accurate. The Confidential Appendix submitted with the report contains
the site records for the surrounding recorded archaeological sites and is not necessary reading 1'or the
Commission as there are no recorded sites on the project site.
By Minute Motion 96-_ accept for partial compliance with the California Environmental Quality Act
(CEQA), the archaeological report for the Desert Sands Unified School District Educational Services Center
Project, prepared by Brian F. Smith and Larry J. Pierson, Brian F. Smith and Associates, January 25, 1996.
Attachments:
Archaeological Report (Confidential)
0 013
TO:
FROM:
DATE:
RE:
0*1
'f-t'4�t 4 4 Q"
MEMORANDUM
Historic Preservation Commissioners
Leslie J. Mouriquand, Associate Planner
December 15, 1995
Senate Bill 875
Attached is a copy of SI3 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 SB 875,
please let me know as soon as possible. My telephone number is 777-7068.
PAGE 1
Display 1995-1996 Bill Text
- INFORMATION
ATTACH
M
E
N
T 1
BILL NUMBER: SB 875
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 93992 ef- to add Sections 1924-l7 -l4262-
94343Ti; and 94359T-l1 to 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 effect immediately- tax -levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 875, as amended, Marks. Income and bank and corporation taxes:
deduction" credits and disclosure.
The Personal fneeme Tax Law and the Bank and earperatien 'Pax
Law authorise variousdeductions in computing the income that is
subjeet to taxes,- including a deduction for the ordinary and
necessary expenses paid or incurred in a trade er business with
respect to iebbying aetivitiesT
This bill would previde under bath laws that only 59% of the
amount otherwise deductible shall be allowed as a deduction fer
certain expenses paid or incurred fer -lobbying activities in partial
conformity with specified federal fneeme tax statutesT
Existing law authorizes the Franchise Tax Board to enter into a
voluntary disclosure agreement 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 ELmount 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
-.0 6 015
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 L•o 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 bill would take effect immediately as a tax levy -
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: 9f3 majority. Appropriation: no. Fiscal committee: yeas.
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.
(a) 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
016
--- --- -- - - - -
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 17O53.44 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 bring 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 abuilding (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
017
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 taxp�ayer'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, asocial 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.
sBe- 3v Section 1-724-1 is added to the Revenue and Taxation
Bede; to reed-
14241. The amendments made by Section 13222 of the Revenue
Reeeneiliatien Act of 1993 {Prig 183-66}7 relating to denial of
deduction for lobbying expenses,- to section 149tft of the Internal
Revenue Bede- relating to disallowance of deduction in certain eases
and special rnlea- shall apply to 5e percent of any amount paid
or incurred an or after January 1T 49957
sBe- 4v section 14869 is added to the Revenue and Taxation
eedeT to rend-
1426ZT The amendments made by Section 13222 of the Revenue
-.01, 018
PAGE 5
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
Reeeneiliation Aet of 11593 tP-S- 193-66tr relating to denial of
deduetion fee lobbying expenses- to Seetien 162 of the fnternal
Revenue eeder relating to trade or business expensear shall apply
to 59 pereent of any amount paid or ineerred an or after January
it 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 applicationsfor 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 part of 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
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 qualified shareholder, except as provided in
paragraph JjJ of subdivision J�J of Section 19192
(A) Waive its authority under this part, Part 10 (Commencing with, Section
17001), or Part it (commencing with Section 23001)7 with reepeet to the
geeiified business eetictp; 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
PAGE 7
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
Section 17001) or Part 11 (commencing with Section 23001).
(ii) Except as provided in clause fiii} 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 germs of
the voluntary disclosure agreement) imposed under this part, Part 10
(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 Tax Beard may extend the time for filing
returns and paying ame,nnto due to i28 daps from the signing date
of the voluntary diseiasure 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).
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:
(1) 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
"."JI6i 021
PAGE 8
Display 1995-1996 Bill 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.
"Qualified shareholder" means an individual that is all of
the following:
A nonresident on the signing date of the voluntary
disclosure agreement.
(BB) A shareholder of an S corporation (defined in Section 23800)
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 (i) of
subparagraph (A) of paragraph (T) of subdivision (d) of Section
19191.
Notwithstanding paragraph (3), subparagraph ja of paragraph.
of subdivision id).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)(1) 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 buildingcodes requiring earthquake resistant building
design.
(C) The amount is restricted to those activities necessary to bring 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
,jo 022
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 aggregates 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 retrain 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 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
023
PAGE 10
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
($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.
BHe- 6T Section 234:72 of the Revenue and Taxation Bede is
amended to read-
2344e- tat per the purposes of this part--
tl} Hxeept as provided in paragraph t2}T every organization
exempt from taxation under Section 23491 and every trust treated as
a private foundation because of Scotian 4944tatfit of the Internal
Revenue eede shall file an annual return,- stating specifically the
items of gress income- reeeipts- and disbursements- and any ether
information for the purpose of carrying out the laws under this
part as the Franchise 'Pax Beard may by rules or regulations
preseribe- and shall keep these records,- render under each these
statementsT make any ether returns,- and comply with any rules and
regulations as the Franchise Tax Beard may from time to time
preseri.be- The return shall be filed en or before the 15th day
of the fifth full calendar month fallowing the alone of the income
year-
tit Hxeeptions from filing--
tAt Mandatary exeeptiens--paragraph tlt shall net apply to --
fit ehurehea7 their, integrated auxiliaries- and conventions or
association of ehurehe:n-
flit Any organization tether than a private foundation as defined
in Section 23489}7 the gross receipts of which in each taxable
year are normally net mere than twenty-five thousand dollars
0257969f- or
tiiif The exclusively religions activities of any religiens order-
tBt Biseretienary exceptions --The Franchise Tax Beard may permit
the filing of a simplified return far organizations based an either
green receipts or total assets or bath gross receipts and total
assetaT er may permit the filing of an information statement
twithent feetT or may permit the filing of a group return for
incorporated or unincorporated branches of a state or natienal
arganization where it determines that an information return is net
necessary to the efficient administration of this part.-
tat An organization that is required to file an annual
information return shall pay a filing fee of ten dollars t$let an
or before the due data for filing the annual information return
tdetermined with regard to any extension of time for filing the
return} required by this seetien- in ease of failure to pay the
fee an or before the time date unless it is shown that the
failure is due to reasonable eauneT the filing fee shall be
twenty-five dollars t!$25}- All collection remedies provided in
Article 5 teommeneing with Section 18661t of ehapter 2 of Part
.0 i1 0.2 4
PAGE 11
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875 -
BILL TEXT
1072 shall be applicable
to eelleetien of the filing fee- HeweverT the filing fee shall
net apply to the erganization described in paragraph f4t-
f4t Paragraph fat shall net apply ter fAt a religions
ergnnizntien exempt under Section 23491d- fBt an educational
organization exempt under Section 294eldT if the ergenization
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 en-
fet a charitable ergani:zatien- or an ergnnizntien for the prevention.
of cruelty to children er animelsT exempt under Section 29401dr if
the ergnnizntien is suppartedT in whale or in part,- by funds
contributed by the United States or any state or political
subdiv+sien thereof- er is primarily supported by eentributions of
the general public- fBj- an ergnnizntien exempt ender Section 23461dT
if the ergnnizntien is eperntedT supervised- er eentrelled by er in
connection with a religious ergnnizntien described in subparagraph
fAt-
fbt Every ergnnizntien described in Seetien 23461d which is
subjeet to the requirements of subdivisien fat shall furnish
annually infermatienT at the time and in the manner as the
Franchise Tax Beard may by rules or regulations prescribe,- setting
forth the fellewingr
flt its gross income far the year-
f2t Its expenses attributable to its gross income and incurred
within.theyear-
f3t its disbursements within the year far the purposes far which
it is exempt.-
f4t A balance sheet showing its assetaT linbilitiesT and net
worth as of the beginning of the year..
f5t The total of the contributions and gifts received by it
during the year,- and the names and addresses of all substantial
eentributersr
f6t The names and addresses of its foundation manager fwithin
the meaning of Section 4946 of the internal Revenue eedet and
highly compensated empleyeesT
f4t The compensation and ether payments made during the year to
each individual described in paragraph f6t7
fSt in the ease of an organization with respect to which an
election under Section 23494r5 is effective for the taxable yenrT
the following amounts for the ergnnizatien far that taxable years
fht The lebbying expenditures fee defined in Section 23446fetflt•t7
fBt The lobbying nontaxable amount fee defined in Section
2944Bfetf2ttr
fet The gressreets expenditures fee defined in Section
23449fetf3tt-
fBt The grassroots nontaxable amount fro defined in Section
23449fetf4tt7 Per purposes of this paragraph,- if Section 23449fft
applies to the ergnnizatien for the taxable pear,- the ergnnizatien
--ju, 025
PAGE 12
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
shell furnish the ameunts with respect to the affiliated group as
well as with respect to the erganizatien..
t9t Any ether information with respect to direct or indirect
transfers teT and ether direct or indirect transactions and
relationships with; ether organizations described in Sections 23481a
to 29491WT inelusive I -ether than Sections 2348IdT 2348Ik7 and
2348ittT as the Franchise Tax Beard may require to prevent either
of the fellewings
tht Biversien of funds from the erganizatien<s exempt perpese-
tBt Misallocation of revenue or expense,- and
tiBt Any ether relevant information as the Franchise 'Pax Beard
may preseribe-
tet In addition to the abeve annual return any erganizatien
which is required to file an annual report tinder Seetien 6956 of
the internal Revenue E'.ede will furnish a copy of the repert to
the Franchise 'Pax Beard at the time the annual return is due -
felt tit tAt If this snbdivisien applies to an erganizatien fer
any ineeme peer,- the erganizatien shahs
tit include an any return required to be filed ender snbdivisien.
tat far that year information setting forth the total expenditures
of the organization to which Section }62fettlt of the Interne}
Revenue Smile applies and the total amount of the dues or ether
similar amounts paid to the organization to which these expenditures
are alleeabie-
tiit Except as provided in clause tit of subparagraph tAt of
paragraph f2t and paragraph t3tT at the time of assessment or
payment of the dues es! ether similar amountsT provide netiee to
each persen making that payment whieh contains a reasonable estimate
of the portion of the dues or ether similar amounts to whieh
these expenditures arse se aileeabie-
fBt tit This subdivision shall apply to any erganizatien that is
exempt from taxation tinder this part ether than an erganizatien
described in Section 2348id-
tilt This snbdivisien shall net apply to the in-heuse
expenditures {within the meaning of Section i62tett5tfBtti:t of the
Internal Revenue eedejr of an erganizatien for an income year if
these expenditures de net, exceed two thousand dollars t527888t- In
determining whether a taxpayer exceeds the two thousand dollar
17$2T809t limit under this elauseT there shall net be taken into
account overhead costs otherwise mileembie to activities described in
subparagraphs fAt and fBt of Section 162 tot tlt of the Internal
Revenue eede-
fet Per purposes of this paragraphs
tit Expenditures to which Section I62tettlt of the Internal
Revenue eede applies shad be treated as paid out of dues or
ether similar amounts to the extent thereof-
flit If expenditures to which Section 162fetflt of the Internal
Revenue code applies exceed the dues er ether similar amounts far
any ineeme year,- that excess shall be treated as expenditures to
which Section i62tettlt of the Internal Revenue eede applies which
•' 026
PAGE 13
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
are paid or incurred by the organization during the following
Income year:
t2t tAt If an organizatienr
tit Bleats net to provide the notices described in subparagraph
*At of paragraph tit for any income pear,- or
tiit Fails to inelude in the notices the amount alleeable to
expenditures to which Section 162te}tl} of the Internal Revenue Bede
applies *determined an the basis of actual amounts rather than the
reasonable estimates under clause tiit of subparagraph tAt of
paragraph tittT then there is hereby imposed an that organization
for the ineeme year a tax in an amount equal to 58 percent of
the product of the rate of tax imposed by Section 29151 for the
income year and the aggregate amount net ineluded in these notices
by reason of that election or failure-
tBt The Franchise Tax Beard may waive the tax imposed by elapse
tiit of subparagraph tht for any income year if the erganizatien
agrees to adjust its estimates under clause tiit of subparagraph
tAt of paragraph tit for the following income year to eerreet any
failures.-
tet Per purposes of this part,- the tax imposed by subparagraph
tAt shall be treated in the same manner as a tax imposed by
chapter 2 teemmenaing with Section 23i8ltT relating to the Bank and
earperatien Franchise TaxT
tat Subparagraph tAt of paragraph fit shall net apply to an
organization which establishes to the satisfaction of the Franchise
Tax Beard that substantially all of the dues or ether similar
amounts paid by persons to the organization are net deductible
without regard to Seetien 162tet of the Internal Revenue eodeT
tat Per the purposes of this part --
tit In the ease of a failure to file a return required under
this section an the date and in the manner prescribed therefor
tdetermined with regard to any extension of time for filing}T
unless it is shown that the failure is due to reasonable eauseT
there shall be paid ten notice and demand by the Franchise Tax
Beard and in the same manner as text by the exempt organization
or trust failing so to fileT five dollars t$St for each month or
part thereof during which that failure eentinuesT but the total
amount imposed hereunder an any organization for failure to file
any return shall net exeeed forty dollars t$49t7
t2t The Franchise Tax Beard may make written demand upon a
private foundation fai:ling to file under paragraph fit of this
subdivision er subdivi:sien tat specifying therein a reasonable future
date by which the filing shall be made,- and if that filing is
net made an or before that dater and unless it is shown that
failure se to file is due to reasonable eauseT there shall be
paid ten notice and demand by the Franchise Tax Beard end in the
same manner as text by the person failing as to file,- in addition
to the penalty prescribed in paragraph tlyT a penalty of five
dollars t$St each menth or part thereof after the expiration of
the time specified in the written demand during which the failure
Ot; 027
PAGE 14
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
eentinuesT but the total amount imposed hereunder an all persons
fer that failure to file shall net exceed twenty-five dollars
t$RSts if more than one person is liable under this paragraph fer
a failure to fileT all these persons shall be jointly and
severally liable with respect to the failure: The term apersen" as
need herein means any offieer- director- trueteeT empleyeeT memberT
or ether individual who is under a duty to perform the act in
respect of which the violation eeeurev
tft The reporting requirements and penalties shall be applicable
for ineeme years beginning after Beeember BIT 1948- except that the
previsions of subparagraph tot of paragraph tRt of subdivision tat
shall apply to ineeme years ending after Beeember 317 1948v
SBe- 47 Section 24343-1 is added to the Revenue and Taxation
eede,- to rend-
24343-1- The amendments made by Section 13R22 of the Revenue
Reeeneiliation Act of 1993 tP-b- 183-66t- relating to denial of
dednetien for lobbying expenses,- to Seetien l62 of the Internal
Revenue eede,- relating to trade er business expenses,- shall apply
to 59 percent of any e.meunt paid or ineurred on or after January
1T 1995-
SHe- 8- Seetien 24354711 is added to the Revenue and Taxation
eede,- to rend-
24354-I17 tat only 58 percent of the amount etherwise allowable
as a deduction shall tie allewed under Section 24354 fer a
contribution to an erganizatien that conducts activities to which
Section 162tett}t of the internal Revenue Bede applies an matters
of direct financial interest to the dener" trade er business,- if
a principal purpose of; the contribution was to avoid the tax
imposed by this part by seeuring a deduction for these activities
under Section 24354 that would be disallewed by reason of Section
162tet of the Internal Revenue eede if the dener had conducted
these activities directly-
tbt enly 58 pereent: of the amount otherwise allewable ea a
dednetien shall be allowed under Section 24343,- based en the
application of Seetien 162tat of the Internal Revenue eede,- fer any
amount for which a dednetion is disallewed under subdivisien tat-
tat This seetien shall apply to any amount paid er ineurred an
er after January IT 19957
SBes 9: This act provides fer a tax levy within the meaning
of Article IV of the eenstitutien and shall go into immediate
effeet-
SEC. 6. Section 1088.5 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.
."U, 028
PAGE 15
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER: SB 875
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 form, 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 failed
pursuant to Section 1D88.
(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,
.��� 029
PAGE 16
Display 1995-1996 Bill. Text - INFORMATION
BILL NUMBER: SB 875
BILL TEXT
respectively, of Division 9 of the Welfare and Institutions Code.
Ja 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.
030
ATTACHMENT 2
IF CALIFORNIA PRESERVATION FOUNDATION
NEW YEAR'S RESOLUTION:
Prevent this from happening
in 1996!
Join Us in this New Year's Resolution: "Historic Tar
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 part, 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, wismic
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 Petits, 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 as 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 133, 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: Fmthquate damage in the city of Fillmore
. „ 031
/ T
L° C
�Z
� a
--•••1 HISTORIC PRESERVATION COMMISSION
of iHto STAFF REPORT
DATE: FEBRUARY 8, 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 be 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 Guinta
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. Attachment 2 contains Mrs. Henderson's letter of resignation, dated January 5, 1996. The
City Clerk will be readvertising for the appointments in the near future with interviews by the City Council
scheduled for February 6, 1996.
Two applications have been received for the two vacancies. Jim DeMersman submitted an application on
November 8, 1995, and Stewart Woodard submitted his application on January 24, 1996. Mr. DeMersman
has extensive experience and training in museums, history, and historic preservation. Mr. Woodard is a
professional architect who has received over 90 design awards.
Attachments:
1. Resolution 95.97
2. Letter of resignation
:�u 032
ATTACHMENT
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.
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
.JiJ; 031
Resolution 95-97
AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Bangerter
NOES: None
ABSENT: None
ABSTAIN: None
A ST:
AUNDRA L. N OLA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
DAWN HONEYWELL, City Attorney
City of La Quinta, California
RESOCC.166
!L
GLENDA BANGERTER, yor
City of La Quinta, Califo a
•0,r-t; 034
ATTACHMENT
TERRY HENDERSON
54-I11 EISENHOWER DR.
LA QUINTA, CA 92253
619-564-2925 FAX 619-564-1625
Januwy 5, 1995
City ob La Quinta
Hii6totiic PUAervation Commimion
P.O. Box 1504
La Quinta, CA 92253
Attention: Le,5tie Mouni,quaad
I(J A N 0 U819 9
As you are ovate, it i5 neceasary bon me to neaign my position as a commissioner,, on the
Historic Pne6ehvation Commission.
It has teen a ptecv wwe Goring involved in the evolution ob La Quinta's very own Hi tonic
Pneseivation CommiAsion and the ptoceys ob becoming a Centtbied Locat Government. I
have neeentty spoken with Kevien Pirozzi, new appointee to the Palm Springs HiMonic
Commijsion, eoncetming the CLG p'wgnam and beet that any e.WU that we can make in
asmisting them on any other, ob our, valley sister cities in tiws direction would certainty
to Genebicial. Am a matteA-ob-baet it may Ge worth ow while to joint venzvte this
ebbont.
La Quinta is very timited in its histoty, certainly what we have i6 near, dea4 and
pteeiou,5, however, we are in mo many waym "The Coachetia Valley" - hlMonicauy. Ye6,
we (the cities) all have our own uniquenesm. Ceitaindy we mint do all we can to
maintain that which is otws. La Quinta ins bontunate in that it has the La Quinta
Historical Society which ham keen dUigent in ith e o4V. to this. MayGe the Commission
should spearhead a joint meeting with the other, valley eitie-3 and historical mocieties to
co-ordinate ebbonts.
At any hate with the Histonie, Atenenvation Element adopted and a part ob the General
Plan bon. the City ob La Quinta and with the completion ob the up -coming City-wide
Survey the Commvssion, in my opinion, needs to evahuate its worth.
Sincerely, p
Teary HHe`adti✓�on
1135