CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Constitutional Amendment No. 6

Introduced by Assembly Member Harper

February 17, 2017

A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 1 of Article XIII A thereof, and by amending Section 18 of Article XVI thereof, relating to school facilities.


LEGISLATIVE COUNSEL'S DIGEST


ACA 6, as introduced, Harper. School facilities: bonded indebtedness: vote requirement.
The California Constitution prohibits specified public entities from incurring indebtedness or liability in a year that exceeds the income and revenue provided for that year, without the assent of 2/3 of the voters of the public entity voting at an election to be held for that purpose, except as provided. The California Constitution, notwithstanding that prohibition, requires, for a school district, community college district, or county office of education, any proposition for the incurrence of indebtedness in the form of general obligation bonds for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, to be adopted upon the approval of 55% of the voters of the district or county, as appropriate, voting on the proposition at an election.
This measure would repeal the provision authorizing the adoption of a proposition for those purposes by 55% of the voters of the district or county, thereby imposing a 2/3 vote requirement for these school-related bonds. The measure would also make conforming changes and nonsubstantive corrections.
Vote: 2/3   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2017–18 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended as follows:

First—

 That Section 1 of Article XIII A thereof is amended to read:

SECTION 1.
 (a) The maximum amount of any ad valorem tax on real property shall not exceed One percent (1%) 1 percent of the full cash value of such that property. The one percent (1%) 1-percent tax to shall be collected by the counties and apportioned according to law to the districts within the counties.
(b) The limitation provided for in subdivision (a) shall not apply to ad valorem taxes or special assessments to pay the interest and redemption charges on any of the following:
(1) Indebtedness approved by the voters prior to July 1, 1978.
(2) Bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition.
(3) Bonded indebtedness incurred by a school district, community college district, or county office of education for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, approved by 55 percent of the voters of the district or county, as appropriate, voting on the proposition on or after the effective date of the measure adding this paragraph. two-thirds of the votes cast by the voters voting on the proposition. This paragraph shall apply only if the proposition approved by the voters and resulting in the bonded indebtedness includes all of the following accountability requirements:
(A) A requirement that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIII A, Section 1(b)(3), and not for any other purpose, including teacher and administrator salaries and other school operating expenses.
(B) A list of the specific school facilities projects to be funded and certification that the school district board, community college board, or county office of education has evaluated safety, class size reduction, and information technology needs in developing that list.
(C) A requirement that the school district board, community college board, or county office of education conduct an annual, independent performance audit to ensure that the funds have been expended only on the specific projects listed.
(D) A requirement that the school district board, community college board, or county office of education conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for the school facilities projects.
(c) (1) Notwithstanding any other provisions of law or of this Constitution, school districts, community college districts, and county offices of education may levy a 55 percent 55-percent vote ad valorem tax pursuant to subdivision (b).
(2) Paragraph (1) shall not apply on and after the effective date of the measure adding this paragraph.
(3) Nothing in this section prohibits a school district, community college district, or a county office of education from collecting a 55-percent vote ad valorem tax to pay bonded indebtedness incurred pursuant to paragraph (3) of subdivision (b), as it read before the effective date of the measure adding this paragraph.

Second—

 That Section 18 of Article XVI thereof is amended to read:

SEC. 18.
 (a) No A county, city, town, township, board of education, or school district, shall not incur any indebtedness or liability in any manner or for any purpose exceeding in any year the income and revenue provided for such that year, without the assent of two-thirds of the voters of the public entity voting at an election to be held for that purpose, except that with respect to any such public entity which that is authorized to incur indebtedness for public school purposes, any a proposition for the incurrence of indebtedness in the form of general obligation bonds for the purpose of repairing, reconstructing reconstructing, or replacing public school buildings determined, in the manner prescribed by law, to be structurally unsafe for school use, shall be adopted upon the approval of a majority of the voters of the public entity voting on the proposition at such that election; nor unless before or at the time of incurring such indebtedness indebtedness, provision shall be made for the collection of an annual tax sufficient to pay the interest on such indebtedness as it falls due, and to provide for a sinking fund for the payment of the principal thereof, on or before maturity, which shall not exceed forty 40 years from the time of contracting the indebtedness.

(b)Notwithstanding subdivision (a), on or after the effective date of the measure adding this subdivision, in the case of any school district, community college district, or county office of education, any proposition for the incurrence of indebtedness in the form of general obligation bonds for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, shall be adopted upon the approval of 55 percent of the voters of the district or county, as appropriate, voting on the proposition at an election. This subdivision shall apply only to a proposition for the incurrence of indebtedness in the form of general obligation bonds for the purposes specified in this subdivision if the proposition meets all of the accountability requirements of paragraph (3) of subdivision (b) of Section 1 of Article XIII A.

(c)

(b) When two or more propositions for incurring any indebtedness or liability are submitted at the same election, the votes cast for and against each proposition shall be counted separately, and when two-thirds or a majority or 55 percent of the voters, as the case may be, voting on any one of those propositions, vote in favor thereof, the proposition shall be deemed adopted.