Bill Text: CA ACA9 | 2009-2010 | Regular Session | Amended
Bill Title: Local government bonds: special taxes: voter approval.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2010-01-14 - To inactive file on motion of Assembly Member Torrico. [ACA9 Detail]
Download: California-2009-ACA9-Amended.html
BILL NUMBER: ACA 9 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 26, 2009
AMENDED IN ASSEMBLY APRIL 27, 2009
INTRODUCED BY Assembly Member Huffman
(Coauthors: Assembly Members Fuentes, Portantino, Salas,
Saldana, and Torlakson)
(Coauthors: Senators Hancock and Wolk)
FEBRUARY 6, 2009
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Sections 1
and 4 of Article XIII A thereof, by amending Section 2 of Article
XIII C thereof, by amending Section 3 of Article XIII D thereof, and
by amending Section 18 of Article XVI thereof, relating to local
government finance.
LEGISLATIVE COUNSEL'S DIGEST
ACA 9, as amended, Huffman. Local government bonds: special
taxes: voter approval.
(1) The California Constitution prohibits the ad valorem tax rate
on real property from exceeding 1% of the full cash value of the
property, subject to certain exceptions.
This measure would create an additional exception to the 1% limit
for a rate imposed by a city, county, city and county, or special
district to service bonded indebtedness, incurred to fund specified
public improvements, facilities or buildings, and housing, and
related costs, that is approved by 55% of the voters of the city,
county, city and county, or special district, as applicable. This
additional exception would apply only if the proposition approved by
the voters results in bonded indebtedness that includes specified
accountability requirements.
(2) The California Constitution conditions the imposition of a
special tax by a city, county, or special district upon the approval
of 2/3 of the voters of the city, county, or special district voting
on that tax, except that certain school entities may levy an ad
valorem property tax for specified purposes with the approval of 55%
of the voters within the jurisdiction of these entities.
This measure would change the 2/3 voter-approval requirement for
special taxes to, instead, authorize a city, county, city and
county, or special district to impose a special tax with the
approval of 55% of its voters voting on the tax. This measure would
also make technical, nonsubstantive changes to these provisions.
(3) The California Constitution prohibits a county, city, town,
township, board of education, or school district from incurring any
indebtedness exceeding in one year the income and revenue provided in
that year, without the assent of 2/3 of the voters and subject to
other conditions.
This measure would lower to 55% the voter approval threshold for a
city, county, or city and county to incur bonded indebtedness,
exceeding in one year the income and revenue provided in that year,
that is in the form of general obligation bonds to fund specified
public improvements.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, 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 1 percent of the full cash value of
that property. The 1 percent tax to 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 to fund 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. 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 this paragraph, 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.
(4) (A) Bonded indebtedness, approved by 55 percent of the voters
of the city, county, city and county, or special district, as
applicable, voting on the proposition on or after the effective date
of the measure adding this paragraph, incurred by a city, county,
city and county, or special district to fund any or all of the
following:
(i) Construction, reconstruction, rehabilitation, or replacement
of any of the following:
(I) Public improvements, including, but not limited to,
improvements to transportation infrastructure, streets, highways,
sewer systems, water systems, wastewater systems, and park and
recreation facilities.
(II) Facilities or buildings used exclusively
primarily to provide sheriff, police, or fire protection
services to the public, including the furnishing and equipping of
those facilities or buildings.
(III) Development of housing Housing
affordable to lower and moderate-income households .
(ii) Acquisition or lease of real property for the public
improvements, facilities or buildings, and housing described in
clause (i) of this subparagraph.
(B) 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:
(i) A requirement that the proceeds from the sale of the bonds be
used only for the purposes specified in this paragraph, and not for
any other purpose, including public employee salaries and other
operating expenses of a public improvement, facility or building, or
housing development once completed.
(ii) A list of the specific projects to be funded and
certification that the city council, county board of supervisors, or
governing body of the special district has evaluated the costs of
operating the public improvements, public facilities, or affordable
housing.
(iii) A requirement that the city council, county board of
supervisors, or governing body of the special district conduct an
annual, independent performance audit to ensure that the proceeds
from the sale of the bonds have been expended only on the specific
projects listed.
(iv) A requirement that the city council, county board of
supervisors, or governing body of the special district 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
specific projects to be funded from the bonds.
(v) A requirement for a public process that solicits a wide range
of public comment from the community about the types of facilities
that should be funded with the bond.
(c) Notwithstanding any other provisions of law or of this
Constitution, a school district, community college district, county
office of education, city, county, city and county, or special
district may levy a 55 percent vote ad valorem tax pursuant to
subdivision (b).
Second-- That Section 4 of Article XIII A thereof is amended to
read:
Section 4. A city, county, city and county, or
special district, by a 55 percent vote of its voters voting on the
proposition, may impose a special tax within that city, county,
city and county, or special district, except an ad valorem tax
on real property or a transactions tax or sales tax on the sale of
real property within that city, county, city and county,
or special district.
Third-- That Section 2 of Article XIII C thereof is amended to
read:
SEC. 2. Notwithstanding any other provision of this
Constitution:
(a) A tax imposed by any local government is either a general tax
or a special tax. A special purpose district or agency, including a
school district, has no authority to levy a general tax.
(b) A local government shall not impose, extend, or increase any
general tax unless and until that tax is submitted to the electorate
and approved by a majority vote of its voters voting on the
proposition. A general tax is not deemed to have been increased if it
is imposed at a rate not higher than the maximum rate so approved.
The election required by this subdivision shall be consolidated with
a regularly scheduled general election for members of the governing
body of the local government, except in cases of emergency declared
by a unanimous vote of the governing body.
(c) Any general tax imposed, extended, or increased, without voter
approval, by any local government on or after January 1, 1995, and
prior to the effective date of this article, may continue to be
imposed only if that general tax is approved by a majority vote of
the voters voting in an election on the issue of the imposition,
which election is held no later than November 6, 1998, and in
compliance with subdivision (b).
(d) A local government shall not impose, extend, or increase any
special tax unless and until that tax is submitted to the electorate
and approved by a 55 percent vote of its voters voting on the
proposition. A special tax is not deemed to have been increased if it
is imposed at a rate not higher than the maximum rate so approved.
Fourth-- That Section 3 of Article XIII D thereof is amended to
read:
SEC. 3. (a) An agency shall not assess a tax, assessment, fee,
or charge upon any parcel of property or upon any person as an
incident of property ownership except:
(1) The ad valorem property tax imposed pursuant to Article XIII
and Article XIII A.
(2) Any special tax approved by the voters of the city, county,
city and county, or special district, as appropriate, voting on the
proposition, as required by the California Constitution.
(3) Assessments as provided by this article.
(4) Fees or charges for property-related services as provided by
this article.
(b) For purposes of this article, fees for the provision of
electrical or gas service are not deemed charges or fees imposed as
an incident of property ownership.
Fifth-- That Section 18 of Article XVI thereof is amended to read:
SEC. 18. (a) No county, city, town, township, board of
education, or school district, shall incur any indebtedness or
liability in any manner or for any purpose exceeding in any year the
income and revenue provided for 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 that is authorized to incur indebtedness for public
school purposes, any proposition for the incurrence of indebtedness
in the form of general obligation bonds for the purpose of repairing,
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 that election; nor
unless before or at the time of incurring the indebtedness, provision
shall be made for the collection of an annual tax sufficient to pay
the interest on the 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 years from the time of
contracting the indebtedness.
(b) Notwithstanding subdivision (a), on or after November 8, 2000,
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) Notwithstanding subdivision (a), on or after the effective
date of the measure adding this subdivision, in the case of any city,
county, or city and county, any proposition to incur indebtedness in
the form of general obligation bonds shall be adopted by 55 percent
of the voters of the city, county, or city and county, as applicable,
voting on the proposition at an election, where the general
obligation bonds fund any or all of the following:
(1) Construction, reconstruction, rehabilitation, or replacement
of any of the following:
(A) Public improvements, including, but not limited to,
improvements to transportation infrastructures, streets, highways,
sewer systems, waters systems, wastewater systems, and park and
recreation facilities.
(B) Facilities or buildings used exclusively to provide sheriff,
police, or fire protection services to the public, including the
furnishing and equipping of those facilities or buildings.
(C) Development of housing Housing
affordable to lower and moderate-income households.
(2) Acquisition or lease of real property for the public
improvements, facilities or buildings, and housing described in
paragraph (1) of this subdivision.
(d) 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.
