California Legislature—2013–14 Regular Session

Assembly Constitutional Amendment No. 8

Introduced by Assembly Member Blumenfield

February 13, 2013

Assembly Constitutional Amendment No. 8—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 1 of Article XIII A thereof, and by amending Section 18 of Article XVI thereof, relating to local government finance.

LEGISLATIVE COUNSEL’S DIGEST

ACA 8, as introduced, Blumenfield. Local government financing: 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, as defined, to service bonded indebtedness incurred to fund specified public improvements and facilities, or buildings used primarily to provide sheriff, police, or fire protection services, that is approved by 55% of the voters of the city, county, city and county, or special district, as applicable.

(2) 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 2⁄3 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, county, or city and 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 to fund specified public improvements and facilities, or buildings used primarily to provide sheriff, police, or fire protection services.

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 2013-14 Regular
Session commencing on the third day of December 2012,
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 begin delete One end delete begin insert 1 end insert percent begin delete (1%) end delete of the
full cash value of begin delete such end delete begin insert that end insert property. The begin delete one end delete begin insert 1 end insert percent begin delete (1%) end delete tax
begin delete to end delete begin insert shall end insert 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 begin delete for end delete begin insert to
fund end insert 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 begin delete the
effective date of the measure adding this paragraph end delete begin insert November 8,
2000 end insert . 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 begin delete Article XIII end delete begin delete   end delete begin delete A, Section
1(b)(3), end delete begin insert this paragraph end insert 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.

begin insert

(4) (A) Bonded indebtedness, approved by 55 percent of the
voters of a 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 the city, county,
city and county, or special district to fund the construction,
reconstruction, rehabilitation, maintenance, replacement, or
earthquake repair or seismic retrofit of any of the following:

end insert begin insert

(i) Public improvements, including, but not limited to,
improvements to transportation infrastructures, streets and roads,
sidewalks, transit systems, highways, freeways, sewer systems,
water systems, wastewater systems, storm drain systems, and park
and recreation facilities.

end insert begin insert

(ii) Facilities or buildings used primarily to provide sheriff,
police, or fire protection services to the public, including the
furnishing and equipping of those facilities or buildings.

end insert begin insert

(B) “Special district,” for purposes of this paragraph, has the
same meaning as that term is used in subdivision (c) of Section 1
of Article XIII C, but does not include a school district or a
redevelopment agency.

end insert

(c) Notwithstanding any other provisions of law or of this
Constitution, begin insert a end insert school begin delete districts, community college districts, and
county offices of education end delete begin insert district, community college district,
county office of education, city, county, city and county, or special
district end insert may levy a 55 percent vote ad valorem tax pursuant to
subdivision (b).

Second--  

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 begin delete such end delete begin insert that end insert 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 begin delete which end delete begin insert that end insert 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 begin insert , end insert 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 begin delete such end delete begin insert that end insert election; nor unless before or at the
time of incurring begin delete such indebtedness end delete begin insert the indebtedness, end insert provision
shall be made for the collection of an annual tax sufficient to pay
the interest on begin delete such end delete begin insert the end insert 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 begin delete the effective
date of the measure adding this subdivision, end delete begin insert November 8, 2000, end insert
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.

begin insert

(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 would fund the construction,
reconstruction, rehabilitation, maintenance, replacement, or
earthquake repair or seismic retrofit of any of the following:

end insert begin insert

(1) Public improvements, including, but not limited to,
improvements to transportation infrastructures, streets and roads,
sidewalks, transit systems, highways, freeways, sewer systems,
water systems, wastewater systems, storm drain systems, and park
and recreation facilities.

end insert begin insert

(2) Facilities or buildings used primarily to provide sheriff,
police, or fire protection services to the public, including the
furnishings and equipping of those facilities or buildings.

end insert begin delete

(c)

end delete

begin insert (d) end insert  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.