BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACA 15
                                                                  Page  1

          Date of Hearing:  May 6, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                  ACA 15 (Arambula) - As Introduced:  March 10, 2009
           
          SUBJECT  :  Local government transportation projects:  special  
          taxes:  voter approval.

           SUMMARY  :  Lowers the constitutional vote requirement for  
          approval of a special tax specifically for providing funding for  
          local transportation projects from two-thirds to a 
          55% majority. 

           EXISTING LAW  :

          1)Authorizes cities, counties, and special districts to impose a  
            general tax for general governmental purposes with the  
            approval of a majority of the voters.

          2)Authorizes cities, counties, and special districts to impose a  
            special tax for specified purposes with the approval of  
            two-thirds of the voters.

          3)Authorizes local entities to incur school bonded indebtedness  
            with the approval of 55% of the voters voting on the measure  
            as an exception to the two-thirds voter threshold for special  
            taxes.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)Constitutional requirements for voter approval of tax measures  
            were initiated with the passage of Proposition 13 in 1978, and  
            solidified with the passage of Proposition 218 in 1996.  The  
            latter measure clarified that general taxes for general  
            governmental purposes require approval of a majority of  
            voters, while special taxes for any specified purposes must be  
            approved by two-thirds of voters.  Proposition 39, which was  
            narrowly approved by 53% of California voters in 2000,  
            provided an exception to the two-thirds vote requirement for  
            special taxes by authorizing the passage of local school bond  
            measures by approval of 55% of the voters.









                                                                  ACA 15
                                                                  Page  2

          2)ACA 15 would amend the State Constitution to lower the  
            constitutional vote requirement from two-thirds to 55% for  
            approval of a special tax that will provide funding for local  
            transportation projects.  The author maintains that ACA 15  
            will provide local government and residents with the ability  
            to make vital investments in local transportation projects  
            while providing economic stimulus to their region.  Further,  
            the author notes that "in order to renew or establish new  
            funding sources, local governments face the daunting task of  
            obtaining a two-thirds approval of voters.  Despite being  
            supported by a strong majority of the community and regardless  
            of their community importance these measure are at the mercy  
            of a small minority of the voters and often fail by narrow  
            margins."


          3)Shifting to a 55% vote for special taxes and bond indebtedness  
            has been tried several times in the last 10 years.  Among  
            other bills, ACA 7 (Nation) from the 2005-06 session, would  
            have lowered the constitutional vote requirement from  
            two-thirds to 55% for any special tax.  ACA 10 (Feuer), 2008,  
            would have created an additional exception to the 1% ad  
            valorem property tax, approved with 55% of the voter approval  
            for transportation projects.  There are currently several  
            other measures revising the constitutional voting threshold  
            for different purposes pending in the Senate and Assembly:   
            ACA 10 (Torlakson), ACA 9 (Huffman), SCA 12 (Kehoe), and SCA 6  
            (Simitian).

          4)This bill requires a two-thirds vote of the Legislature.

          5)This bill is double-referred to the Committee on  
            Appropriations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA State Association of Counties
          Sacramento Regional Transit District
          Santa Clara Valley Transportation Authority
          Self-Help Counties Coalition 

           Opposition 
           








                                                                  ACA 15
                                                                  Page  3

          CA Association of Realtors
          Cal-Tax
          Howard Jarvis Taxpayers Association
           

          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958