BILL NUMBER: ACA 4 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2010
AMENDED IN ASSEMBLY APRIL 12, 2010
AMENDED IN ASSEMBLY MARCH 17, 2010
INTRODUCED BY Assembly Members Feuer, JohnB A.B Perez, and Bass
(Coauthor: Senator Steinberg)
DECEMBER 3, 2008
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Sections 8
and 9 of Article II thereof, by amending Sections 8, 10, and 12 of
Article IV thereof, by amending Sections 24 and 25.5 of
Article XIII thereof, by amending Section 3 of Article XIII
A thereof, by adding Section 17 to Article XI thereof, by
adding Section 21 to Article XVI thereof, and by adding
Section 3.5 to Article XVIII thereof, relating to state and
local finance.
LEGISLATIVE COUNSEL'S DIGEST
ACA 4, as amended, Feuer. State and local
finance reform.
(1) Under the existing California Constitution, the initiative is
the power of the electors to propose statutes and amendments to the
state constitution and to adopt or reject them.
This measure would require that an initiative measure that would
result in a net increase in state or local government costs, other
than costs attributable to the issuance, sale, or repayment of bonds
authorized by the measure, or a net decrease in state revenue,
which net increase or net decrease exceeds $25,000,000
annually, as adjusted for inflation, as jointly determined by
the Legislative Analyst and Director of Finance, may not be submitted
to the electors or have any effect unless and until the Legislative
Analyst and the Director of Finance jointly determine that the
initiative measure provides for additional revenues in an amount that
meets or exceeds the net increase in costs.
The California Constitution generally vests the legislative power
of the state in the California State Legislature.
This measure would make void a statute that would result either in
a net increase in qualified state costs or a net decrease in state
revenue in excess of $25,000,000 annually, as defined by statute and
as adjusted for inflation, unless the statute also contains
provisions that would result in state program reductions or
additional state revenue as defined by statute in an amount that is
equal to or greater than the net increase in qualified state costs or
net decrease in state revenue subject to exceptions for the Budget
Act, and statutes required to fund increased costs for education as
required by the Constitution.
The California Constitution provides that the Legislature may
propose to the electors both amendments and revisions to the
California Constitution, and may enact statutes by passing bills.
This measure would prohibit a constitutional amendment or revision
from being submitted to the electors or having any effect if that
measure would create a new state program or agency or expand the
scope of an existing state program or agency and cause either a net
increase in state costs or a net decrease in state revenues in excess
of $25,000,000 annually, as adjusted for inflation, unless the
measure identifies additional revenue in an amount that is equal to
or greater than the increased costs or decrease in revenue.
(2) Existing provisions of the California Constitution provide
that if, following the enactment of a Budget Bill, the Governor
determines that, for the fiscal year addressed by the Budget Bill,
General Fund revenues will decline substantially below the estimate
of General Fund revenues upon which the Budget Bill was based, or
General Fund expenditures will increase substantially above that
estimate of General Fund revenues, or both, the Governor may issue a
proclamation declaring a fiscal emergency and cause the Legislature
to assemble in special session. If the Legislature fails to pass and
send to the Governor a bill or bills to address the fiscal emergency
by the 45th day following the issuance of the proclamation, the
Legislature may not act on any other bill or adjourn for joint
recess, until a bill or bills addressing the fiscal emergency has
been passed and sent to the Governor.
This measure additionally would provide that, if the Legislature
has not passed and sent to the Governor a bill or bills addressing a
fiscal emergency by the 45th day following the proclamation declaring
the emergency, the Governor may, by executive order, reduce or
eliminate any unexpended appropriation in the Budget Act for the
fiscal year that is not required by the California Constitution or
federal law, in an amount not exceeding the amount of the budget
discrepancy identified by the Governor. The measure would authorize
the Legislature to override those actions of the Governor by a 2/3
vote of the membership of each house.
(3) The California Constitution requires the Governor to submit to
the Legislature by January 10 of each year a budget for the ensuing
fiscal year, accompanied by a Budget Bill itemizing recommended
expenditures. The Legislature is required to pass the Budget Bill by
June 15. The Constitution requires that specified bills, including
bills making a change in state taxes for the purpose of raising
revenue, bills containing an urgency clause, and bills, including the
Budget Bill, that make certain appropriations from the General Fund,
be passed in each house of the Legislature by a 2/3 vote.
This measure would require the Governor to submit to the
Legislature by January 10 of each year a budget for the ensuing
fiscal year, known as the budget year, and for the succeeding fiscal
year. The measure would require the budget to contain specified
information, including performance measurement standards for state
agencies and programs, and a projection for anticipated state
revenues. The Governor would be required to include in the budget an
estimate of the amount of state funds available for the proposed
expenditures, and to include revenue and expenditure projections for
3 additional fiscal years the budget year and
the succeeding fiscal year . The Governor also would
be required to provide a 5-year capital infrastructure and strategic
growth plan as specified by statute. If the Governor
proposes to create a new state program or agency, or to expand the
scope of an existing state program or agency, which would increase
state costs during the budget year or the succeeding fiscal year, or
proposes to reduce a state tax the effect of which would reduce state
revenue in the budget year or the succeeding fiscal year, the
measure would require the Governor to identify state program
reductions or additional revenues that is are
equal to or greater than the increase in costs or decrease in
revenue. Under the measure, the Governor additionally would be
required to provide the Legislature , on specified dates set by
statute, with updated projections of state revenue and
expenditures for the budget and succeeding fiscal years at
specified times during the budget process .
This measure would require that each house of the Legislature, on
or before May 1 of each year, refer the Budget Bill and bills
implementing the Budget Bill to a joint committee of the Legislature,
which must report recommendations to each house by June 20. This
measure would require the Legislature, by June 25, to pass and
present to the Governor the Budget Bill. The measure also would
provide that, if a Budget Bill is not passed and presented to the
Governor by June 25, Members of the Legislature would forfeit any
salary and travel and living expenses from that date until the date
the Budget Bill is passed and presented to the Governor.
The measure also would limit the use of unanticipated revenues, as
defined , pursuant to annual determinations made by the
Director of Finance, for specified purposes.
Appropriations in a Budget Bill, as defined, would be exempted
from the 2/3-vote requirement that applies to appropriations from the
General Fund. A Budget Bill, and any budget implementation bills,
would go into effect immediately upon their enactment.
Under the existing California Constitution, the referendum is the
power of the electors to approve or reject statutes except urgency
statutes, statutes calling elections, and statutes providing for tax
levies or appropriations for usual current expenses of the state.
This measure would expressly include statutes enacting the Budget
Bill among those exceptions to the power of referendum.
Additionally, with respect to a referendum measure pertaining to a
statute enacted by a budget implementation bill, as defined, the
operation of the statute would be stayed on the date of the
submission of the referendum petition to the Attorney General,
subject to compliance with existing referendum procedures.
(4) The existing California Constitution requires the approval of
2/3 of the membership of each house of the Legislature to pass a bill
that would make a change in state taxes for the purposes of
increasing revenues derived from those taxes.
This measure would further require that a bill imposing a fee that
would fund a specific program, service, or activity
previously funded by a tax, which was either repealed or reduced in
the same fiscal year or a prior the
immediately preceding fiscal year, be passed by a 2/3 vote of
both legislative houses.
(5) The California Constitution authorizes the existence of local
governments that can make and enforce ordinances and regulations that
are not in conflict with general laws. The California Constitution
also requires that general ad valorem property revenues be allocated
to local jurisdictions in each county in the manner as provided in
statute.
This measure would authorize local government agencies, in the
manner provided for by statute, to adopt and implement a Countywide
Strategic Action Plan, and, upon adoption of the plan in a county,
would authorize the county board of supervisors to place on the
ballot a measure to impose an additional countywide sales and use
tax, the revenues of which would be distributed as provided pursuant
to statute and the Countywide Strategic Action Plan. This measure
would prohibit the state from reallocating the proceeds of a non-ad
valorem tax that is imposed by a local government agency, would
specify that general ad valorem property tax revenues are required to
be allocated to jurisdictions in the county in which those revenues
are collected, and would prohibit the direction by statute of the
expenditure of those revenues for any specific purpose or purposes.
(6) The California Constitution prohibits the Legislature from
modifying the manner in which ad valorem property tax revenues are
allocated by law so as to reduce, for any fiscal year, the percentage
of the total amount of property tax revenues in a county that is
allocated among all of the local agencies in that county below the
percentage of the total amount of those revenues that would be
allocated among those agencies for the same fiscal year under the
statutes in effect on November 3, 2004. This prohibition may be
suspended for a fiscal year under specified conditions.
This measure would limit the suspension authority to the 2009-10
fiscal year. The measure would, except for specified purposes, also
prohibit the Legislature from reallocating or directing the
expenditure of property tax revenues that are allocated to a
community redevelopment agency under constitutional provisions that
authorize the expenditure by the agency of incremental property tax
revenues in a redevelopment project area.
(7)
(5) This measure provides that it would become
operative on January 1, 2011.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
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-- The People of the State of California find and declare all
of the following:
(a) Throughout its history, California has led the way in
technology, education, and quality of life. California thrives
because its people value innovation, diversity, and creativity in how
they work, think, and live.
(b) California's future as a world leader depends on continuing to
improve public services that are vital to its people: outstanding
public schools; reliable police, fire, and emergency services;
affordable and available healthcare; and modern infrastructure.
(c) This task is not the job of any one political party or
ideology. It is the shared responsibility of every Californian. In
particular, California's elected leaders have an obligation to
continually evaluate the effectiveness of these services and to
strive to deliver the best possible results while minimizing waste,
fraud, and abuse of taxpayer dollars.
(d) The adoption of a state budget should play a key role in
setting priorities, making choices about how tax dollars are spent,
and ensuring that the people and their elected leaders understand the
objectives and the consequences of budget decisions.
(e) In recent years, however, this process has become bogged down
by political bickering and special interests seeking undue influence.
(f) California needs to change the state budget process to give
policymakers the tools needed to restore and maintain public trust,
and to hold them accountable by requiring them to forfeit their pay
when they fail to approve a budget on time.
(g) The changes to the state budget process proposed by this
measure will ensure the long-term fiscal health of California by
requiring the Governor and the Legislature to use the best practices
of other states and successful businesses to improve results and
create accountability as follows:
(1) Planning ahead: The state will be guided by plans that
consider long-term costs and revenue forecasts so that decisionmakers
and the public understand the future implications of today's fiscal
choices.
(2) Focusing on priorities and results: Budget decisions will be
guided by what programs are trying to achieve and changes needed to
reach specific goals, including changes to strategy, management, and
resources.
(3) Creating a culture of accountability: Lawmakers will spend
more time reviewing what the public is getting for its money and
making changes to policies and programs to improve results.
(4) Ending partisan budget gridlock: A simple majority vote to
pass the budget--while preserving the two-thirds vote to raise taxes
and ensuring that higher fees are not used to supplant tax
revenue--will both prevent costly delays in enacting a budget and
increase accountability for budget decisions.
(5) Managing volatile revenue: Temporary spikes in revenue cannot
be relied upon to expand basic services but instead must be used,
after meeting the minimum funding guarantee for education, for
one-time purposes, such as paying down debt or saving for periods of
declining revenue.
(6) Paying our own way: In hard economic times, it is incumbent
upon the people of California to make sure that the state has the
money to pay for new programs before committing to them. Under this
measure, major new and expanded programs will be financed through
efficiencies--dollars redirected from lower priorities or new
revenue. Policymakers will be required to link a policy choice over a
new program or tax cut with the decision about how to pay for it.
Second-- That Section 8 of Article II thereof is amended to read:
SEC. 8. (a) The initiative is the power of the electors to
propose statutes and amendments to the Constitution and to adopt or
reject them.
(b) An initiative measure may be proposed by presenting to the
Secretary of State a petition that sets forth the text of the
proposed statute or amendment to the Constitution and is certified to
have been signed by electors equal in number to 5 percent in the
case of a statute, and 8 percent in the case of an amendment to the
Constitution, of the votes for all candidates for Governor at the
last gubernatorial election.
(c) The Secretary of State shall then submit the measure at the
next general election held at least 131 days after it qualifies or at
any special statewide election held prior to that general election.
The Governor may call a special statewide election for the measure.
(d) An initiative measure embracing more than one subject may not
be submitted to the electors or have any effect.
(e) An initiative measure may not include or exclude any political
subdivision of the State from the application or effect of its
provisions based upon approval or disapproval of the initiative
measure, or based upon the casting of a specified percentage of votes
in favor of the measure, by the electors of that political
subdivision.
(f) An initiative measure may not contain alternative or
cumulative provisions wherein one or more of those provisions would
become law depending upon the casting of a specified percentage of
votes for or against the measure.
(g) An initiative measure that would result in a net increase in
state or local government costs, other than costs attributable to the
issuance, sale, or repayment of bonds authorized by the measure,
or a net decrease in state revenues, which net increase or net
decrease exceeds twenty-five million dollars ($25,000,000) annually,
as adjusted for inflation pursuant to the California Consumer Price
Index, as jointly determined by the Legislative Analyst and the
Director of Finance, may not be submitted to the electors or have
any effect unless and until the Legislative Analyst and the Director
of Finance jointly determine that the initiative measure provides for
additional revenues in an amount that meets or exceeds the net
increase in costs.
Third-- That Section 9 of Article II thereof is amended to read:
SEC. 9. (a) The referendum is the power of the electors to
approve or reject statutes or parts of statutes except urgency
statutes, statutes calling elections, statutes enacting the budget
bill, and statutes providing for tax levies or appropriations for
usual current expenses of the State.
(b) (1) A referendum measure may be proposed
by presenting to the Secretary of State, within 90 days after the
enactment date of the statute, a petition certified to have been
signed by electors equal in number to 5 percent of the votes for all
candidates for Governor at the last gubernatorial election, asking
that the statute or part of it be submitted to the electors. In the
case of a statute enacted by a bill passed by the Legislature on or
before the date the Legislature adjourns for a joint recess to
reconvene in the second calendar year of the biennium of the
legislative session, and in the possession of the Governor after that
date, the petition may not be presented on or after January 1 next
following the enactment date unless a copy of the petition is
submitted to the Attorney General pursuant to subdivision (d) of
Section 10 before January 1.
(2) If a copy of a referendum petition is submitted to the
Attorney General pursuant to subdivision (d) of Section 10 as to a
statute enacting a budget implementation bill, other than such a
statute that is exempt from the power of referendum pursuant to
subdivision (a), which submittal occurs within 90 days following that
enactment but not later than the January 1 following the enactment,
the operation of the statute shall be immediately stayed. The
operation of such a statute enacted by a budget implementation bill
shall resume on the 91st day after enactment unless a referendum
petition as to the statute has been presented to the Secretary of
State in accordance with paragraph (1).
(c) The Secretary of State shall then submit the measure at the
next general election held at least 31 days after it qualifies or at
a special statewide election held prior to that general election. The
Governor may call a special statewide election for the measure.
Fourth-- That Section 8 of Article IV thereof is amended to read:
SEC. 8. (a) At regular sessions no bill other than the budget
bill may be heard or acted on by committee or either house until the
31st day after the bill is introduced unless the house dispenses with
this requirement by rollcall vote entered in the journal,
three-fourths of the membership concurring.
(b) The Legislature may make no law except by statute and may
enact no statute except by bill. No bill may be passed unless it is
read by title on three days in each house except that the house may
dispense with this requirement by rollcall vote entered in the
journal, two-thirds of the membership concurring. No bill may be
passed until the bill with amendments has been printed and
distributed to the Members. No bill may be passed unless, by rollcall
vote entered in the journal, a majority of the membership of each
house concurs.
(c) (1) Except as provided in paragraphs (2) and (3), a statute
enacted at a regular session shall go into effect on January 1 next
following a 90-day period from the date of enactment of the statute
and a statute enacted at a special session shall go into effect on
the 91st day after adjournment of the special session at which the
bill was passed.
(2) A statute, other than a statute establishing or changing
boundaries of any legislative, congressional, or other election
district, enacted by a bill passed by the Legislature on or before
the date the Legislature adjourns for a joint recess to reconvene in
the second calendar year of the biennium of the legislative session,
and in the possession of the Governor after that date, shall go into
effect on January 1 next following the enactment date of the statute
unless, before January 1, a copy of a referendum petition affecting
the statute is submitted to the Attorney General pursuant to
subdivision (d) of Section 10 of Article II, in which event the
statute shall go into effect on the 91st day after the enactment date
unless the petition has been presented to the Secretary of State
pursuant to subdivision (b) of Section 9 of Article II.
(3) Statutes calling elections, statutes providing for tax levies
or appropriations for the usual current expenses of the State,
urgency statutes, and statutes enacting a budget bill or a budget
implementation bill shall go into effect immediately upon their
enactment.
(d) Urgency statutes are those necessary for immediate
preservation of the public peace, health, or safety. A statement of
facts constituting the necessity shall be set forth in one section of
the bill. In each house the section and the bill shall be passed
separately, each by rollcall vote entered in the journal, two-thirds
of the membership concurring. An urgency statute may not create or
abolish any office or change the salary, term, or duties of any
office, or grant any franchise or special privilege, or create any
vested right or interest.
(e) (1) A statute that would result in either a net increase in
qualified state costs or a net decrease in state revenue in excess of
twenty-five million dollars ($25,000,000) annually, as defined by
statute, as adjusted for inflation pursuant to the California
Consumer Price Index, is void unless the statute having that fiscal
effect also contains provisions that would result in state program
reductions or additional state revenue, or both, as defined by
statute, in an amount that is equal to or greater than the net
increase in qualified state costs or net decrease in state revenue.
(2) Paragraph (1) does not apply to the following:
(A) The budget act or a statute enacting a budget implementation
bill.
(B) An appropriation that is in satisfaction of the requirements
of Section 8 of Article XVI.
(C) An emergency declared by the Governor. As used in this
subparagraph, "emergency" means the existence, as declared by the
Governor, of conditions of disaster or of extreme peril to the safety
of persons and property within the State, or parts thereof, caused
by such conditions as attack or probable or imminent attack by an
enemy of the United States, fire, flood, drought, storm, civil
disorder, earthquake, or volcanic eruption.
Fifth-- That Section 10 of Article IV thereof is amended to read:
SEC. 10. (a) Each bill passed by the Legislature shall be
presented to the Governor. It becomes a statute if it is signed by
the Governor. The Governor may veto it by returning it with any
objections to the house of origin, which shall enter the objections
in the journal and proceed to reconsider it. If each house then
passes the bill by rollcall vote entered in the journal, two-thirds
of the membership concurring, it becomes a statute.
(b) (1) Any bill, other than a bill which would establish or
change boundaries of any legislative, congressional, or other
election district, passed by the Legislature on or before the date
the Legislature adjourns for a joint recess to reconvene in the
second calendar year of the biennium of the legislative session, and
in the possession of the Governor after that date, that is not
returned within 30 days after that date becomes a statute.
(2) Any bill passed by the Legislature before September 1 of the
second calendar year of the biennium of the legislative session and
in the possession of the Governor on or after September 1 that is not
returned on or before September 30 of that year becomes a statute.
(3) Any other bill presented to the Governor that is not returned
within 12 days becomes a statute.
(4) If the Legislature by adjournment of a special session
prevents the return of a bill with the veto message, the bill becomes
a statute unless the Governor vetoes the bill within 12 days after
it is presented by depositing it and the veto message in the office
of the Secretary of State.
(5) If the 12th day of the period within which the Governor is
required to perform an act pursuant to paragraph (3) or (4) is a
Saturday, Sunday, or holiday, the period is extended to the next day
that is not a Saturday, Sunday, or holiday.
(c) Any bill introduced during the first year of the biennium of
the legislative session that has not been passed by the house of
origin by January 31 of the second calendar year of the biennium may
no longer be acted on by the house. No bill may be passed by either
house on or after September 1 of an even-numbered year except bills
that would take effect immediately upon enactment and bills passed
after being vetoed by the Governor.
(d) The Legislature shall not present any bill to the Governor
after November 15 of the second calendar year of the biennium of the
legislative session.
(e) The Governor may reduce or eliminate one or more items of
appropriation while approving other portions of a bill. The Governor
shall append to the bill a statement of the items reduced or
eliminated with the reasons for the action. The Governor shall
transmit to the house originating the bill a copy of the statement
and reasons. Items reduced or eliminated shall be separately
reconsidered and may be passed over the Governor's veto in the same
manner as bills.
(f) (1) If, following the enactment of the budget bill for the
2004-05 fiscal year or any subsequent fiscal year, the Governor
determines that, for that fiscal year, General Fund revenues will
decline substantially below the estimate of General Fund revenues
upon which the budget bill for that fiscal year, as enacted, was
based, or General Fund expenditures will increase substantially above
that estimate of General Fund revenues, or both, the Governor may
issue a proclamation declaring a fiscal emergency and shall thereupon
cause the Legislature to assemble in special session for this
purpose. The proclamation shall identify the nature of the fiscal
emergency, including the amount of the budget discrepancy, and shall
be submitted by the Governor to the Legislature, accompanied by
proposed legislation to address the fiscal emergency. When the
Governor issues a proclamation declaring a fiscal emergency, the
Legislature shall pass and present to the Governor a bill or bills to
address the fiscal emergency.
(2) If the Legislature fails to pass and send to the Governor a
bill or bills to address the fiscal emergency by the 45th day
following the issuance of the proclamation, the Legislature shall not
act on any other bill, nor may the Legislature adjourn for a joint
recess, until that bill or those bills have been passed and sent to
the Governor.
(3) A bill addressing the fiscal emergency declared pursuant to
this section shall contain a statement to that effect. For purposes
of this subdivision, a bill that contains the statement required by
this paragraph shall thereby be deemed to address the fiscal
emergency.
(4) If the Legislature has not passed and sent to the Governor a
bill or bills to address a fiscal emergency by the 45th day following
the issuance of the proclamation, the Governor may, by executive
order, reduce or eliminate any unexpended appropriation in the budget
act for that fiscal year to the extent that the appropriation is not
required by this Constitution or by federal law. The total amount of
the reduction or elimination of appropriations shall not exceed the
amount of the budgetary discrepancy identified by the Governor
pursuant to paragraph (1).
(5) If the Legislature is in session when the Governor issues an
executive order pursuant to paragraph (4), it may, within 20 days
following the date the order is issued, override all or part of the
executive order by a resolution passed by rollcall vote entered in
the journal, two-thirds of the membership of each house concurring.
If the Legislature is not in session when the Governor issues the
executive order, the Legislature may, within 30 days following the
date the order is issued, reconvene and override all or part of the
executive order by resolution in the manner described above. An
executive order, or a part thereof, that is not overridden by the
Legislature shall take effect the day after the period to override
the executive order has expired.
Sixth-- That Section 12 of Article IV thereof is amended to read:
SEC. 12. (a) (1) Within the first 10 days of each calendar
year, the Governor shall submit to the Legislature a budget for both
the ensuing fiscal year, known as the budget year, and for the
succeeding fiscal year. The budget shall contain itemized statements,
provisional language, performance measurement standards for state
agencies and programs, recommended state expenditures, and a
projection of anticipated state revenues, including revenues
anticipated to be one-time revenue. The budget shall also contain an
estimate of the total resources available for the state expenditures
recommended for the budget year and the succeeding fiscal year.
The budget shall also contain a projection of anticipated
state expenditures and anticipated state revenues for the three
fiscal years following the fiscal year succeeding the budget year,
and budget-related plans and proposals for those three fiscal years.
If, for the budget year and the succeeding fiscal year,
recommended expenditures exceed estimated revenues, the Governor
shall recommend reductions in expenditures or the sources from which
the additional revenues should be provided, or both. The
recommendations shall include an estimate of the long-term impact
that expenditure reductions or additional revenues will have on the
economy of California. Together with the budget, the
Governor shall submit to the Legislature any legislation necessary to
implement appropriations contained in the budget , together
with a five-year capital infrastructure and strategic growth plan,
as specified by statute .
(2) If the Governor's budget proposes to create a new state
program or agency, or to expand the scope of an existing state
program or agency, as defined by statute, which would result in a net
increase in state costs during the budget year or the succeeding
fiscal year, or proposes to reduce a state tax, which would result in
a net decrease in state revenue in the budget year or the succeeding
fiscal year, the proposal shall be accompanied by a statement
identifying state program reductions or sources of additional state
revenue, or both, in an amount that is equal to or greater than the
net increase in state costs or net decrease in state revenue.
(3) After submitting a budget for the budget year and the
succeeding fiscal year, the Governor shall submit to the Legislature
, no later than a date or dates specified
by statute, updated projections of state revenue and state
expenditures for each of those fiscal years according to the
following schedule:
(A) May 15 of each year.
(B) Immediately following the report of recommendations by the
joint committee pursuant to paragraph (3) of subdivision (c).
(C) October 15 of
each year. .
(b) The Governor and the Governor-elect may require a state
agency, officer, or employee to furnish whatever information is
deemed necessary to prepare the budget.
(c) (1) The budget shall be accompanied by a budget bill itemizing
recommended expenditures for the budget year.
(2) The budget bill and any legislation necessary to implement
appropriations contained in the budget bill shall be introduced
immediately in each house by the persons chairing the committees that
consider the budget.
(3) On or before May 1 of each year, after the appropriate
committees of each house of the Legislature have considered the
budget bill and bills implementing the budget bill, each house of the
Legislature shall refer the budget bill and bills implementing the
budget bill to a joint committee of the Legislature. The joint
committee shall report its recommendations to each house no later
than June 20 of each year. This paragraph does not preclude the
referral of one or more of these bills to policy committees in
addition to the joint committee.
(4) No later than June 25 of each year, the Legislature shall pass
the budget bill and bills implementing the budget bill, and shall
present these bills to the Governor. Notwithstanding any other
provision of this Constitution, including Sections 4 and 8 of Article
II and Section 4 and subdivision (c) of Section 12 of this article,
in any year in which the budget bill is not passed by the Legislature
and presented to the Governor by midnight on June 25, Members of the
Legislature shall forfeit any salary or reimbursement for travel or
living expenses during any regular or special session for the period
from midnight on June 25 until the day that the budget bill is passed
and presented to the Governor. No salary or reimbursement for travel
or living expenses forfeited pursuant to this paragraph shall be
paid retroactively.
(5) Until the budget bill has been enacted, the Legislature shall
not send to the Governor for consideration any bill appropriating
funds for expenditure during the budget year, except emergency bills
recommended by the Governor or appropriations for the salaries and
expenses of the Legislature.
(d) No bill except a budget bill may contain more than one item of
appropriation, and that for one certain, expressed purpose.
Appropriations from the General Fund of the State, except
appropriations for the public schools or appropriations made in a
budget bill, are void unless passed in each house by rollcall vote
entered in the journal, two-thirds of the membership concurring.
(e) The Legislature may control the submission, approval, and
enforcement of budgets and the filing of claims for all state
agencies.
(f) For the 2004-05 fiscal year, or any subsequent fiscal year,
the Legislature shall not send to the Governor for consideration, nor
shall the Governor sign into law, a budget bill that would
appropriate from the General Fund, for that fiscal year, a total
amount that, when combined with all appropriations from the General
Fund for that fiscal year made as of the date of the budget bill's
passage, and the amount of any General Fund moneys transferred to the
Budget Stabilization Account for that fiscal year pursuant to
Section 20 of Article XVI, exceeds General Fund revenues for that
fiscal year estimated as of the date of the budget bill's passage.
That estimate of General Fund revenues shall be set forth in the
budget bill passed by the Legislature.
(g) The Legislature shall establish an oversight process for
evaluating and improving the performance of all programs undertaken
by the State, or by local entities on behalf of the State, based on
performance standards established pursuant to statute. Within one
year of the operative date of the measure adding this subdivision,
the Legislature shall establish a schedule of review for all state
programs, whether managed by a state or local agency. The review
schedule shall be designed so that the relationship between similar
state programs may be examined. The review process shall result in
recommendations in the form of legislation that improves or
terminates programs. Each state program shall be reviewed at least
once every 10 years.
(h) For purposes of this section and Section 8:
(1) A "budget bill" is a bill that makes appropriations for the
support of the government of the State for an entire fiscal year,
including a bill that contains only provisions amending or augmenting
an enacted bill that made appropriations for the support of the
government of the State for an entire fiscal year.
(2) (A) A "budget implementation bill" is a
bill enacted by a statute that is identified in the budget bill as
containing only changes in law necessary to implement a specific
provision of the budget bill.
(B) A budget implementation bill shall not create or abolish any
office or change the salary, term, or duties of any office, or grant
any franchise or special privilege, or create any vested right or
interest.
Seventh--
That Section 17 is added to Article XI thereof, to read:
SEC. 17. (a) Local agencies in a county may, as provided for
by statute, adopt and implement a Countywide Strategic Action Plan
that includes making effective use of existing resources and
providing for the means whereby additional revenue would accelerate
progress toward community goals. A Countywide Strategic Action Plan
shall provide for the sharing of local tax revenues between local
agencies within the county that is in addition to any other authority
conferred by this Constitution for the sharing of local tax revenues
between local agencies.
(b) In a county where a Countywide Strategic Action Plan is
adopted, the board of supervisors may, with the approval of a
majority of its membership, adopt an ordinance to place on the ballot
at a countywide election a measure to impose a countywide sales and
use tax that is in addition to any other sales and use tax or any
transactions and use tax imposed within the county. Any tax measure
placed on the ballot pursuant to this subdivision is approved if it
receives the affirmative vote of a majority of the voters voting on
the proposition.
(c) Notwithstanding any provision of law, the proceeds, net of
refunds, of an additional local sales and use tax imposed in a county
pursuant to subdivision (b) shall be distributed by the county
pursuant to statute and as provided in the Countywide Strategic
Action Plan.
(d) Proceeds of an additional local sales and use tax imposed
pursuant to subdivision (b) that are distributed to a school district
or a community college district shall not be considered allocated
local proceeds of taxes for purposes of Section 8 of Article XVI.
(e) For purposes of this section, "local government agency" means
any local government as defined in Section 1 of Article XIII C.
Eighth-- That Section 24 of Article XIII
thereof is amended to read:
SEC. 24. (a) The Legislature may not impose taxes for local
purposes but may authorize local governments to impose them.
Moneys appropriated from state funds to a local government for its
local purposes may be used as provided by law.
Moneys subvened to a local government under Section 25 may be used
for state or local purposes.
(b) The proceeds of any non-ad valorem tax or an assessment levied
or imposed by a county, city, city and county, including a charter
city or county, any special district, or any other local or regional
governmental entity, belong exclusively to the entity that imposed
the tax or assessment and may not be reallocated by statute. Ad
valorem property tax revenues allocated pursuant to Section 1 of
Article XIII A shall be allocated exclusively among the jurisdictions
within the county in which they are collected in compliance with
Section 25.5, and shall not be directed by statute for expenditure
for a particular purpose or purposes.
Ninth-- That Section 25.5 of Article XIII
thereof is amended to read:
SEC. 25.5. (a) On or after November 3, 2004, the Legislature
shall not enact a statute to do any of the following:
(1) (A) Except as otherwise provided in subparagraph (B), modify
the manner in which ad valorem property tax revenues are allocated in
accordance with subdivision (a) of Section 1 of Article XIII A so as
to reduce for any fiscal year the percentage of the total amount of
ad valorem property tax revenues in a county that is allocated among
all of the local agencies in that county below the percentage of the
total amount of those revenues that would be allocated among those
agencies for the same fiscal year under the statutes in effect on
November 3, 2004. For purposes of this subparagraph, "percentage"
does not include any property tax revenues referenced in paragraph
(2).
(B) For only the 2009-10 fiscal year and subject to subparagraph
(C), subparagraph (A) may be suspended if all of the following
conditions are met:
(i) The Governor issues a proclamation that declares that, due to
a severe state fiscal hardship, the suspension of subparagraph (A) is
necessary.
(ii) The Legislature enacts an urgency statute, pursuant to a bill
passed in each house of the Legislature by rollcall vote entered in
the journal, two-thirds of the membership concurring, that contains a
suspension of subparagraph (A) for that fiscal year and does not
contain any other provision.
(iii) No later than the effective date of the statute described in
clause (ii), a statute is enacted that provides for the full
repayment to local agencies of the total amount of revenue losses,
including interest as provided by law, resulting from the
modification of ad valorem property tax revenue allocations to local
agencies. This full repayment shall be made not later than the end of
the third fiscal year immediately following the fiscal year to which
the modification applies.
(C) A suspension of subparagraph (A) shall not result in a total
ad valorem property tax revenue loss to all local agencies within a
county that exceeds 8 percent of the total amount of ad valorem
property tax revenues that were allocated among all local agencies
within that county for the fiscal year immediately preceding the
fiscal year for which subparagraph (A) is suspended.
(2) (A) Except as otherwise provided in subparagraphs (B) and (C),
restrict the authority of a city, county, or city and county to
impose a tax rate under, or change the method of distributing
revenues derived under, the Bradley-Burns Uniform Local Sales and Use
Tax Law set forth in Part 1.5 (commencing with Section 7200) of
Division 2 of the Revenue and Taxation Code, as that law read on
November 3, 2004. The restriction imposed by this subparagraph also
applies to the entitlement of a city, county, or city and county to
the change in tax rate resulting from the end of the revenue exchange
period, as defined in Section 7203.1 of the Revenue and Taxation
Code as that section read on November 3, 2004.
(B) The Legislature may change by statute the method of
distributing the revenues derived under a use tax imposed pursuant to
the Bradley-Burns Uniform Local Sales and Use Tax Law to allow the
State to participate in an interstate compact or to comply with
federal law.
(C) The Legislature may authorize by statute two or more
specifically identified local agencies within a county, with the
approval of the governing body of each of those agencies, to enter
into a contract to exchange allocations of ad valorem property tax
revenues for revenues derived from a tax rate imposed under the
Bradley-Burns Uniform Local Sales and Use Tax Law. The exchange under
this subparagraph of revenues derived from a tax rate imposed under
that law shall not require voter approval for the continued
imposition of any portion of an existing tax rate from which those
revenues are derived.
(3) Except as otherwise provided in subparagraph (C) of paragraph
(2), change for any fiscal year the pro rata shares in which ad
valorem property tax revenues are allocated among local agencies in a
county other than pursuant to a bill passed in each house of the
Legislature by rollcall vote entered in the journal, two-thirds of
the membership concurring.
(4) Extend beyond the revenue exchange period, as defined in
Section 7203.1 of the Revenue and Taxation Code as that section read
on November 3, 2004, the suspension of the authority, set forth in
that section on that date, of a city, county, or city and county to
impose a sales and use tax rate under the Bradley-Burns Uniform Local
Sales and Use Tax Law.
(5) Reduce, during any period in which the rate authority
suspension described in paragraph (4) is operative, the payments to a
city, county, or city and county that are required by Section 97.68
of the Revenue and Taxation Code, as that section read on November 3,
2004.
(6) Restrict the authority of a local entity to impose a
transactions and use tax rate in accordance with the Transactions and
Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2
of the Revenue and Taxation Code), or change the method for
distributing revenues derived under a transaction and use tax rate
imposed under that law, as it read on November 3, 2004.
(b) On and after the effective date of the measure adding this
subdivision, the Legislature shall not enact a statute to borrow,
reallocate, or restrict or otherwise direct the expenditure for any
purpose or purposes of revenues derived from taxes on ad valorem real
property or tangible personal property allocated to a community
redevelopment agency pursuant to Section 16 of Article XVI, except
for the purpose of (1) making payments to affected taxing entities
pursuant to Sections 33607.5 and 33607.7 of the Health and Safety
Code, or successor statutes requiring community redevelopment agency
payments to taxing entities; or (2) increasing, improving, or
preserving the supply of low- and moderate-income housing available
at affordable housing cost.
(c) For purposes of this section, the following definitions apply:
(1) "Ad valorem property tax revenues" means all revenues derived
from the tax collected by a county under subdivision (a) of Section 1
of Article XIII A, regardless of any of this revenue being otherwise
classified by statute.
(2) "Local agency" has the same meaning as specified in Section 95
of the Revenue and Taxation Code as that section read on November 3,
2004.
Tenth--That Seventh-- That
Section 3 of Article XIII A thereof is amended to read:
Section 3. From and after the effective date of this article,
any changes in state taxes enacted for the purpose of increasing
revenues collected pursuant thereto whether by increased rates or
changes in methods of computation, or imposition of a new tax, must
be imposed by an act passed by not less than two-thirds of all
Members elected to each of the two houses of the Legislature, except
that no new ad valorem taxes on real property, or sales or
transaction taxes on the sales of real property may be imposed. In
addition, any bill that imposes a fee shall be passed by not less
than two-thirds of all Members elected to each of the two houses of
the Legislature if revenue from the fee would be used to fund a
specific program, service, or activity that was previously
funded by revenue from a tax that is repealed or reduced in the same
fiscal year or in a prior the immediately
preceding fiscal year.
Eleventh--That Eighth-- That
Section 21 is added to Article XVI thereof, to read:
SEC. 21. (a) On or before May 31 of each year the Director of
Finance shall do all of the following:
(1) Estimate General Fund revenues for the current fiscal year and
report that estimate to the Legislature and to the Governor.
(2) Estimate the current-year General Fund revenue impact of tax
legislation adopted subsequent to the enactment of the budget bill
and not included in the estimate required pursuant to subdivision (f)
of Section 12 of Article IV. The director shall report that estimate
to the Legislature and to the Governor.
(3) Estimate the amount of the General Fund reserve for economic
uncertainty as of June 30 of the current fiscal year and report that
estimate to the Legislature and to the Governor. If the amount of the
reserve for economic uncertainty is a negative number, an amount of
any unanticipated revenues equal to that negative amount shall remain
in the General Fund and shall not be expended pursuant to
subdivision (c).
(b) "Unanticipated revenues" are the lesser of the following
amounts:
(1) The estimate of General Fund revenues reported pursuant to
paragraph (1) of subdivision (a) minus the estimate of General Fund
revenues for the current fiscal year set forth in the budget bill
pursuant to subdivision (f) of Section 12 of Article IV, which result
shall be augmented by the amount estimated pursuant to paragraph (2)
of subdivision (a).
(2) The amount reported pursuant to paragraph (3) of subdivision
(a).
(c) Unanticipated revenues may be used only as follows, in the
order specified:
(1) First, unanticipated revenues shall be appropriated to satisfy
any additional obligation created by Section 8 resulting from the
unanticipated revenues.
(2) Second, any remaining unanticipated revenues shall be
transferred to the Budget Stabilization Account in an amount
sufficient to fully fund the applicable maximum amount set forth in
subdivision (c) of Section 20.
(3) Third, any remaining unanticipated revenues shall be
appropriated to retire outstanding budgetary indebtedness. For
purposes of this paragraph, "budgetary indebtedness" means any of the
following:
(A) Unfunded prior fiscal year General Fund obligations pursuant
to Section 8.
(B) Any repayment obligation created by the suspension of
subparagraph (A) of paragraph (1) of subdivision (a) of Section 25.5
of Article XIII.
(C) Any repayment obligation created by the suspension of
subdivision (a) of Section 1 of Article XIX B.
(D) Unfunded obligations for reimbursements required by Section 6
of Article XIII B.
(E) Repayment of bonded indebtedness authorized pursuant to
Section 1.3.
(4) Fourth, any remaining unanticipated revenues shall be used for
any of the following one-time purposes:
(A) Returned to taxpayers within the current or immediately
following fiscal year by a one-time revision of tax rates or fee
schedules.
(B) Appropriated for one-time infrastructure or other capital
outlay purposes.
(C) Appropriated to retire outstanding general obligation
indebtedness.
Twelfth--That Ninth-- That
Section 3.5 is added to Article XVIII thereof, to read:
SEC. 3.5. A constitutional amendment or revision proposed by
the Legislature that would create a new state program or agency, or
expand the scope of an existing state program or agency, as defined
by statute, which would result in either a net increase in state
costs or a net decrease in state revenue in excess of twenty-five
million dollars ($25,000,000) annually, as defined by statute and
adjusted for inflation pursuant to the California Consumer Price
Index, shall not be submitted to the electors or have any effect
unless the constitutional amendment or revision also contains
provisions that would result in additional revenue in an amount that
is equal to or greater than the net increase in state costs or net
decrease in state revenue.
Thirteenth--That Tenth-- That
the amendments to the California Constitution made by this
measure shall become operative on January 1, 2011.
Fourteenth--That Eleventh--
That if any of the provisions of this measure or the
applicability of any provision of this measure to any person or
circumstance is found to be unconstitutional or otherwise invalid,
the finding shall not affect the remaining provisions or applications
of this measure to other persons or circumstances, and to that
extent the provisions of this measure are deemed to be severable.
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CORRECTIONS Text--Pages 21 and 23.
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