California Legislature—2013–14 Regular Session

Assembly Constitutional AmendmentNo. 3


Introduced by Assembly Member Campos

January 22, 2013


Assembly Constitutional Amendment No. 3—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 3, as introduced, Campos. Local government financing: public safety services: voter approval.

(1) The California Constitution prohibits the general 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, or special district to service bonded indebtedness incurred to fund certain fire, emergency response, police, or sheriff buildings or facilities, and equipment, that is approved by 55% of the voters of the city, county, or special district, as applicable.

(2) The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of 23 of the voters of the city, county, or special district voting on that tax, and prohibits these entities from imposing an ad valorem tax on real property or a transactions or sales tax on the sale of real property.

This measure would authorize the imposition, extension, or increase of a special tax by a city, county, or special district for the purpose of providing supplemental funding fire, emergency response, police, or sheriff services, upon the approval of 55% of the voters voting on the proposition, and would prohibit the revenues derived from such a tax from being expended to supplant any other funding source for the provision of these services. This measure would also make conforming changes to related provisions.

(3) The California Constitution prohibits specified local government agencies from incurring any indebtedness exceeding in any year the income and revenue provided in that year, without the assent of 23 of the voters and subject to other conditions. In the case of a school district, community college district, or county office of education, the California Constitution permits a 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 similarly lower to 55% the voter-approval threshold for a city or county to incur bonded indebtedness, exceeding in any year the income and revenue provided in that year, that is in the form of general obligation bonds issued to fund certain fire, emergency response, police, or sheriff buildings or facilities, and equipment.

Vote: 23. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

P2    1Resolved by the Assembly, the Senate concurring, That the
2Legislature of the State of California at its 2013-14 Regular
3Session commencing on the third day of December 2012,
4two-thirds of the membership of each house concurring, hereby
5proposes to the people of the State of California, that the
6Constitution of the State be amended as follows:

7

First--  

That Section 1 of Article XIII A thereof is amended to
8read:

9

SECTION 1.  

(a) The maximum amount of any ad valorem
10tax on real property shall not exceedbegin delete Oneend deletebegin insert 1end insert percentbegin delete (1%)end delete of the
11full cash value ofbegin delete suchend deletebegin insert thatend insert property. Thebegin delete oneend deletebegin insert 1end insert percentbegin delete (1%)end delete tax
12begin delete toend deletebegin insert shallend insert be collected by the counties and apportioned according to
13law to the districts within the counties.

P3    1(b) The limitation provided for in subdivision (a) shall not apply
2to ad valorem taxes or special assessments to pay the interest and
3redemption charges on any of the following:

4(1) Indebtedness approved by the voters prior to July 1, 1978.

5(2) Bonded indebtedness for the acquisition or improvement of
6real property approved on or after July 1, 1978, by two-thirds of
7the votes cast by the voters voting on the proposition.

8(3) Bonded indebtedness incurred by a school district,
9community college district, or county office of educationbegin delete forend deletebegin insert to end insert
10begin insertfundend insert the construction, reconstruction, rehabilitation, or replacement
11of school facilities, including the furnishing and equipping of
12school facilities, or the acquisition or lease of real property for
13school facilities, approved by 55 percent of the voters of the district
14or county, as appropriate, voting on the proposition on or afterbegin delete the end delete
15begin deleteeffective date of the measure adding this paragraphend deletebegin insert November 8, end insert
16begin insert2000end insert. This paragraph shall apply only if the proposition approved
17by the voters and resulting in the bonded indebtedness includes
18all of the following accountability requirements:

19(A) A requirement that the proceeds from the sale of the bonds
20be used only for the purposes specified inbegin delete Article XIIIend deletebegin deleteend deletebegin deleteA, Section end delete
21begin delete1(b)(3),end deletebegin insert this paragraphend insert and not for any other purpose, including
22teacher and administrator salaries and other school operating
23expenses.

24(B) A list of the specific school facilities projects to be funded
25and certification that the school district board, community college
26board, or county office of education has evaluated safety, class
27size reduction, and information technology needs in developing
28that list.

29(C) A requirement that the school district board, community
30college board, or county office of education conduct an annual,
31independent performance audit to ensure that the funds have been
32expended only on the specific projects listed.

33(D) A requirement that the school district board, community
34college board, or county office of education conduct an annual,
35independent financial audit of the proceeds from the sale of the
36bonds until all of those proceeds have been expended for the school
37facilities projects.

begin insert

38(4) Bonded indebtedness, approved by 55 percent of the voters
39of a city, county, or special district, as applicable, voting on the
40proposition on or after the effective date of the measure adding
P4    1this paragraph, incurred by the city, county, or special district to
2fund any or all of the following:

end insert
begin insert

3(A) The construction, reconstruction, rehabilitation, or
4replacement of buildings or facilities for direct and exclusive use
5by fire, emergency response, police, or sheriff personnel employed
6by the city, county, or special district to provide fire, emergency
7response, police, or sheriff services to the public; or to fund the
8acquisition or lease of real property for those buildings or
9facilities.

end insert
begin insert

10(B) The purchase, lease, rent, maintenance, or repair of fire
11suppression or emergency response equipment or of interoperable
12communications equipment for direct and exclusive use by fire or
13emergency response personnel employed by the city, county, or
14special district.

end insert
begin insert

15(C) The purchase, lease, rent, maintenance, or repair of
16interoperable communications equipment for direct and exclusive
17use by police or sheriff personnel employed by the city, county, or
18special district.

end insert

19(c) Notwithstanding any other provisions of law or of this
20Constitution,begin insert aend insert schoolbegin delete districts, community college districts, and end delete
21begin deletecounty offices of educationend deletebegin insert district, community college district, end insert
22begin insertcounty office of education, city, county, or special districtend insert may
23levy a 55 percent vote ad valorem tax pursuant to subdivision (b).

24

Second--  

That Section 4 of Article XIII A thereof is amended
25to read:

26

Section 4.  

begin deleteCities, Counties and special districts, end deletebegin insertExcept as end insert
27begin insertotherwise provided by Section 2 of Article XIIIend insertbegin insertend insertbegin insertC, a city, county, end insert
28begin insertor special district, end insertby a two-thirds vote ofbegin delete the qualified electors of end delete
29begin deletesuch districtend deletebegin insert its voters voting on the propositionend insert, may impose
30begin delete special taxes on such districtend deletebegin insert a special tax within that city, county, end insert
31begin insertor special districtend insert, exceptbegin insert anend insert ad valorembegin delete taxesend deletebegin insert taxend insert on real property
32or abegin delete transactionend deletebegin insert transactionsend insert tax or sales tax on the sale of real
33property withinbegin delete such City, Countyend deletebegin insert that city, county,end insert or special
34district.

35

Third--  

That Section 2 of Article XIII C thereof is amended to
36read:

37

SEC. 2.  

begin deleteLocal Government Tax Limitation.end deletebegin deleteend deletebegin delete end deleteNotwithstanding
38any other provision of this Constitution:

39(a) begin deleteAll taxes end deletebegin insertAend insertbegin insertnyend insertbegin insert tax end insertimposed by any local governmentbegin delete shall be end delete
40begin deletedeemed to beend deletebegin insert isend insert eitherbegin insert aend insert generalbegin delete taxesend deletebegin insert taxend insert orbegin insert aend insert specialbegin delete taxesend deletebegin insert taxend insert.
P5    1begin delete Special purpose districtsend deletebegin insert A special districtend insert orbegin delete agenciesend deletebegin insert agencyend insert,
2includingbegin insert aend insert schoolbegin delete districtsend deletebegin insert districtend insert,begin delete shall haveend deletebegin insert hasend insert nobegin delete powerend delete
3begin insert authorityend insert to levybegin insert aend insert generalbegin delete taxesend deletebegin insert taxend insert.

4(b)  begin deleteNo end delete begin insertA end insertlocal governmentbegin delete mayend deletebegin insert shall notend insert impose, extend, or
5increase any general tax unless and until that tax is submitted to
6the electorate and approved by a majority vote. A general taxbegin delete shallend delete
7begin insert isend insert notbegin delete beend delete deemed to have been increased if it is imposed at a rate
8not higher than the maximum rate so approved. The election
9required by this subdivision shall be consolidated with a regularly
10scheduled general election for members of the governing body of
11the local government, except in cases of emergency declared by
12a unanimous vote of the governing body.

13(c) Any general tax imposed, extended, or increased, without
14voter approval, by any local government on or after January 1,
151995, and prior to the effective date of this article, shall continue
16to be imposed only ifbegin insert that general tax isend insert approved by a majority
17vote of the voters voting in an election on the issue of the
18imposition, which election shall be heldbegin delete within two years of the end delete
19begin deleteeffective date of this articleend deletebegin insert no later than November 6, 1998,end insert and
20in compliance with subdivision (b).

21(d) begin deleteNo end deletebegin insert(1)end insertbegin insertend insertbegin insertExcept as otherwise provided in paragraph (2), a end insert
22local governmentbegin delete mayend deletebegin insert shall notend insert impose, extend, or increase any
23special tax unless and until that tax is submitted to the electorate
24and approved bybegin delete aend delete two-thirdsbegin delete voteend deletebegin insert of the voters voting on the end insert
25begin insertpropositionend insert. A special taxbegin delete shallend deletebegin insert isend insert notbegin delete beend delete deemed to have been
26increased if it is imposed at a rate not higher than the maximum
27rate so approved.

begin insert

28(2) The imposition, extension, or increase of a special tax by a
29local government, as may otherwise be authorized by law, for the
30purpose of providing supplemental funding for fire, emergency
31response, police, or sheriff services, requires the approval of 55
32percent of the voters voting on the proposition. A special tax for
33the purpose of providing funding for fire, emergency response,
34police, or sheriff services is not deemed to have been increased if
35it is imposed at a rate not higher than the maximum rate previously
36approved in the manner required by law. The revenues derived
37from the imposition, extension, or increase of a special tax pursuant
38to this paragraph shall not be expended to supplant any other
39funding source for fire, emergency response, police, or sheriff
40services.

end insert
P6    1

Fourth--  

That Section 3 of Article XIII D thereof is amended
2to read:

3

SEC. 3.  

begin deleteProperty Taxes, Assessments, Fees and Charges end delete
4begin deleteLimited. end delete(a) begin deleteNo end deletebegin insertAn agency shall not assess a end inserttax, assessment, fee,
5or chargebegin delete shall be assessed by any agencyend delete upon any parcel of
6property or upon any person as an incident of property ownership
7except:

8(1) The ad valorem property tax imposed pursuant to Article
9XIII and Article XIII A.

10(2) Any special tax receiving a two-thirds vote pursuant to
11Section 4 of Article XIII Abegin insert and paragraph (1) of subdivision (d) end insert
12begin insertof Section 2 of Article XIII C or, as applicable, a 55-percent vote end insert
13begin insertpursuant to paragraph (2) of subdivision (d) of Sectiend insertbegin inserton 2 of Article end insert
14begin insertXIIIend insertbegin insertend insertbegin insertCend insert.

15(3) Assessments as provided by this article.

16(4) Fees or charges forbegin delete property relatedend deletebegin insert property-relatedend insert services
17as provided by this article.

18(b) For purposes of this article, fees for the provision of electrical
19or gas servicebegin delete shallend deletebegin insert areend insert notbegin delete beend delete deemed charges or fees imposed as
20an incident of property ownership.

21

Fifth--  

That Section 18 of Article XVI thereof is amended to
22read:

23

SEC. 18.  

(a) begin deleteNo end deletebegin insertA end insertcounty, city, town, township, board of
24education, or school district, shallbegin insert notend insert incur any indebtedness or
25liability in any manner or for any purpose exceeding in any year
26the income and revenue provided forbegin delete suchend deletebegin insert thatend insert year, without the
27assent of two-thirds of the voters of the public entity voting at an
28election to be held for that purpose, except that with respect to any
29begin delete suchend delete public entitybegin delete whichend deletebegin insert thatend insert is authorized to incur indebtedness
30for public school purposes, any proposition for the incurrence of
31indebtedness in the form of general obligation bonds for the
32purpose of repairing, reconstructingbegin insert,end insert or replacing public school
33buildings determined, in the manner prescribed by law, to be
34structurally unsafe for school use, shall be adopted upon the
35approval of a majority of the voters of the public entity voting on
36the proposition atbegin delete suchend deletebegin insert thatend insert election; nor unless before or at the
37time of incurringbegin delete suchend deletebegin insert theend insert indebtednessbegin insert,end insert provision shall be made
38for the collection of an annual tax sufficient to pay the interest on
39begin delete suchend deletebegin insert thatend insert indebtedness as it falls due, and to provide for a sinking
40fund for the payment of the principal thereof, on or before maturitybegin delete, end delete
P7    1begin deletewhichend deletebegin insert thatend insert shall not exceed forty years from the time of contracting
2the indebtedness.

3(b) Notwithstanding subdivision (a), on or afterbegin delete the effective end delete
4begin deletedate of the measure adding this subdivision,end deletebegin insert November 8, 2000,end insert
5 in the case of any school district, community college district, or
6county office of education, any proposition for the incurrence of
7indebtedness in the form of general obligation bonds for the
8construction, reconstruction, rehabilitation, or replacement of
9school facilities, including the furnishing and equipping of school
10facilities, or the acquisition or lease of real property for school
11facilities, shall be adopted upon the approval of 55 percent of the
12voters of the district or county, as appropriate, voting on the
13proposition at an election. This subdivision shall apply only to a
14proposition for the incurrence of indebtedness in the form of
15general obligation bonds for the purposes specified in this
16subdivision if the proposition meets all of the accountability
17requirements of paragraph (3) of subdivision (b) of Section 1 of
18Article XIII A.

begin insert

19(c) Notwithstanding subdivision (a), on or after the effective
20date of the measure adding this subdivision, in the case of any city
21or county, any proposition to incur indebtedness in the form of
22general obligation bonds shall be adopted by 55 percent of the
23voters of the city or county, as applicable, voting on the proposition
24at an election, if the general obligation bonds would fund any or
25all of the following:

end insert
begin insert

26(1) The construction, reconstruction, rehabilitation, or
27replacement of buildings or facilities for direct and exclusive use
28by fire, emergency response, police, or sheriff personnel employed
29by the city or county to provide fire, emergency response, police,
30or sheriff services to the public, or to fund the acquisition or lease
31of real property for those buildings or facilities.

end insert
begin insert

32(2) The purchase, lease, rent, maintenance, or repair of fire
33suppression or emergency response equipment or of interoperable
34communications equipment for direct and exclusive use by fire or
35 emergency response personnel employed by the city or county.

end insert
begin insert

36(3) The purchase, lease, rent, maintenance, or repair of
37interoperable communications equipment for direct and exclusive
38use by police or sheriff personnel employed by the city or county.

end insert
begin delete

39(c)

end delete

P8    1begin insert(d)end insert When two or more propositions for incurring any
2indebtedness or liability are submitted at the same election, the
3votes cast for and against each proposition shall be counted
4separately, and when two-thirdsbegin delete or a majorityend delete or 55 percentbegin insert or a end insert
5begin insertmajorityend insert of the voters, as the case may be, voting on any one of
6those propositions, vote in favor thereof, the proposition shall be
7deemed adopted.


CORRECTIONS:

Text--Page 4.




O

Corrected 1-23-13—See last page.     99