BILL ANALYSIS Ó
SENATE COMMITTEE ON ELECTIONS
AND CONSTITUTIONAL AMENDMENTS
Senator Norma J. Torres, Chair
BILL NO: SCA 11 HEARING DATE: 6/18/13
AUTHOR: HANCOCK ANALYSIS BY: Darren Chesin
AMENDED: 5/21/13
FISCAL: NO
SUBJECT
Local government: special taxes: voter approval
DESCRIPTION
Existing law , pursuant to the California Constitution, provides
that taxes levied by local governments are either general taxes,
subject to majority approval of its voters, or special taxes,
subject to 2/3 vote. Proposition 13 of 1978 required a 2/3 vote
of each house of the Legislature for state tax increases, and a
2/3 vote of local voters for local special taxes. Proposition
62 of 1986 prohibited local agencies from imposing general taxes
without majority approval of local voters, and a 2/3 vote for
special taxes. Proposition 218 of 1996 extended those vote
thresholds to charter cities, and limited local agencies' powers
to levy new assessments, fees, and taxes. Local agencies
generally propose to increase taxes by adopting an ordinance or
a resolution at a public hearing. The Constitution further bars
school districts from imposing general taxes, but allows school
districts, community college districts, and county offices of
education to issue bonded indebtedness for school facilities
with 55% approval (Proposition 39 of 2000).
This constitutional amendment would lower the vote threshold for
local agencies imposing, extending, or increasing any special
tax from 2/3 to 55% provided all of the following requirements
are met:
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.
The ballot proposition includes a requirement for annual
independent audit of the amount of tax proceeds collected and
the specified purposes and programs funded.
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.
This measure also makes other conforming changes to the
Constitution.
BACKGROUND
Majorities and Super Majorities . Majority rule is a two-edged
sword: democratically elected governments are supposed to enact
policies that the voters want, but both federal and state
systems of government restrict the majority's ability to oppress
a minority interests. For the great majority of public issues,
fifty-percent plus one of a legislative body or an electorate
rule. But for some issues, the United States and California
Constitutions provide that a majority is not enough and a higher
threshold is necessary, such as amending the U.S. Constitution,
removing a president from office, ratifying a treaty, or
overriding a veto.
States largely import the 2/3 vote from the U.S. Constitution
into their own for those same purposes, but also require 2/3
vote on taxes or other measures. In a series of voter
initiatives, Californians have elevated local special tax
increases and legislatively enacted state tax increases to this
level, while almost every other change to the law can be enacted
by majority vote; local agencies can enact general taxes, and
voters can approve tax initiatives increasing state taxes by
majority vote, as they did with Proposition 30 of 2012. As
such, local agencies need a majority vote to assess taxes and
spend the proceeds on whatever purposes they want to, but 2/3 if
they restrict the use of the tax proceeds. Super majorities of
the Legislature are necessary to increase taxes, but only
majorities of voters can.
COMMENTS
According to the Author : "SCA 11 would lower the vote threshold
for increasing most special taxes from 2/3 to 55%. By doing so,
it would align the general requirement with that of school bonds
under Proposition 39. It would lower the burden on cities,
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counties, and special districts to increase revenue for needed
local services provided to Californians. It would apply to
nearly all services, from schools, to transportation, to public
safety agencies. SCA 11 would not mandate any increase on
special taxes. Cities, counties, and special districts would
still have to place proposals on the ballot, and local voters
would still have to approve them. The existing exceptions to
the 2/3 rule (for instance, sales taxes on real property sales)
under Prop. 13 would remain in place.
The only change SCA 11 makes in existing law is to lower the
vote threshold so that 55% of local voters can choose to
increase revenue for their city, county or special district."
Related Legislation . SCA 3 (Leno) which is also on today's
agenda allows school districts, community college districts, and
county offices of education to levy parcel taxes by a 55% vote.
SCA 4 (Liu), which is pending in the Senate Committee on
Transportation and Housing, allows local agencies to levy,
extend, or increase special taxes by a 55% vote for local
transportation projects. SCA 7 (Wolk) which is also on today's
agenda authorizes cities, counties, or special districts to
impose a special tax by a 55% vote of the voters and to issue
bonded indebtedness to construct, reconstruct, rehabilitate, or
replace public libraries. SCA 8 (Corbett), which is also
pending in the Senate Committee on Transportation and Housing,
allows local agencies to levy,
extend, or increase special taxes by a 55% vote for local
transportation projects. SCA 9 (Corbett) which is also on
today's agenda allows local agencies to levy, extend, or
increase special taxes by a 55% vote for community and economic
development projects.
PRIOR ACTION
Senate Governance and Finance Committee 5-1
POSITIONS
Sponsor: Author
Support: Alameda County Transportation Commission
Alameda-Contra Costa Transit District
American Federation of State, County and Municipal
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Employees (AFSCME)
Association of California Construction Managers
Association of California Healthcare Districts
Association of California Water Agencies
California Association of Zoos and Aquariums
California Center for Public Health Advocacy
California Coalition for Adequate School Housing
California Labor Federation
California Park and Recreation Society
California Professional Firefighters
California Special Districts Association
California State Association of Counties
California Transit Association
California Watershed Coalition
Chabot Space and Science Center
Chino Valley Independent Fire District
City and County of San Francisco
City of Fairfield
City of Rancho Cordova
City of San Jose
Contra Costa County Fire Protection District
Cosumnes Community Services District
Cordova Recreation and Park District
Cucamonga Valley Water District
Desert Recreation District
East Bay Municipal Utility District
East Bay Regional Park District
East Bay Zoological Society
Fulton-El Camino Recreation and Park District
Glendale City Employees Association
Hesperia Recreation and Park District
Idyllwild Fire Protection District
League of California Cities
Leucadia Wastewater District
Little Lake Fire Protection District
Livermore Area Recreation and Park District
Metropolitan Transportation Commission
Napa County Transportation & Planning Agency/Napa
Valley Transportation Authority
Olivehurst Public Utility District
Palos Verdes Library District
Reclamation District No. 1000
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Running Springs Water District
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Clara County Board of Supervisors
Santa Clara County Open Space
Santa Rosa City Employees Association
Small School Districts Association
Three Valleys Municipal Water District
Tomales Village Community Services District
Oppose: American Council of Engineering Companies
Apartment Association California Southern Cities
Apartment Association of Orange County
California; Apartment Association of Greater Los
Angeles
Association of California Life and Health Insurance
Companies
California Ambulance Association
California Apartment Association
California Association of Realtors
California Business Properties Association
California Chamber of Commerce
California Grocers Association
California Healthcare Institute
California Manufacturers and Technology Association
California Restaurant Association
California Retailers Association
California Taxpayers Association
California Association of Winegrape Growers
Camarillo Chamber of Commerce
East Bay Rental Housing Association
Howard Jarvis Taxpayers Association;
National Federation of Independent Business
Nor Cal Rental Property Association
Orange County Business Council
San Diego County Apartment Association
Santa Barbara Rental Property Association
Union Pacific Railroad;
Western Manufactured Housing Communities Association
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