Amended in Senate May 21, 2013

Senate Constitutional Amendment No. 11

Introduced by Senator Hancock

January 25, 2013

Senate Constitutional Amendment No. 11—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 4 of Article XIII A thereof, begin delete and end delete by amending Section 2 of Article XIII C thereof, and by amending Section 3 of Article XIII D thereof, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SCA 11, as amended, Hancock. Local government: special taxes: voter approval.

The California Constitution conditions the imposition of a special tax by a local government upon the approval of 2⁄3 of the voters of the local government voting on that tax, and prohibits a local government from imposing an ad valorem tax on real property or a transactions tax or sales tax on the sale of real property.

This measure would instead condition the imposition, extension, or increase of a special tax by a local government upon the approval of 55% of the voters voting on the proposition begin insert , if the end insert begin insert proposition end insert begin insert proposing the tax contains specified requirements end insert . The measure would also make conforming and technical, nonsubstantive changes.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

Resolved by the Senate, the Assembly 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 4 of Article XIII A thereof is amended to
read:

Section 4.  

A city, county, or special district, upon the approval
of 55 percent of its voters voting on the proposition, may impose
a special tax within that city, county, or special district, except ad
valorem taxes on real property or a transactions tax or sales tax on
the sale of real property within that city, county, or special district.

Second--  

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

SEC. 2.  

Notwithstanding any other provision of this
Constitution:

(a) Any tax imposed by any local government is either a general
tax or a special tax. A special 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. 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 November 6, 1996, 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
shall be held no later than November 6, 1998, and in compliance
with subdivision (b).

(d)  begin insert (1) end insert begin insert   end insert 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 55 percent of the voters voting on the
begin delete proposition. A end delete begin insert proposition, and all of the following requirements
are met: end insert

begin insert

(A) The ballot proposition contains a specific list of programs
and purposes to be funded, and a requirement that tax proceeds
be spent solely for those programs and purposes.

end insert begin insert

(B) The ballot proposition includes a requirement for annual
independent audit of the amount of tax proceeds collected and the
specified purposes and programs funded.

end insert begin insert

(C) The ballot proposition requires the governing board to
create a citizens’ oversight committee to review all expenditures
of proceeds and financial audits, and report its findings to the
governing board and public.

end insert

begin insert (2) end insert begin insert   end insert begin insert A end insert special tax shall not be deemed to have been increased if
it is imposed at a rate not higher than the maximum rate so
approved.

Third--  

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 receiving the approval of 55 percent of the
voters voting on the proposition pursuant to Section 4 of Article
XIII A.

(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 charges or fees imposed as an incident of
property ownership.