Amended in Senate August 28, 2013

Amended in Senate May 21, 2013

Amended in Senate March 19, 2013

Senate Constitutional Amendment No. 4

Introduced by Senator Liu

(Coauthor: Senator Pavley)

(Coauthor: Assembly Member Bonilla)

December 3, 2012

Senate Constitutional Amendment No. 4—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, and by amending Section 2 of Article XIII C thereof, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SCA 4, as amended, Liu. Local government transportation projects: special taxes: voter approval.

The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of 2⁄3 of the voters of the city, county, or special district voting on that tax, except that certain school entities may levy an ad valorem property tax for specified purposes with the approval of 55% of the voters within the jurisdiction of these entities.

This measure would provide that the imposition, extension, or increase of a special tax by a local government for the purpose of providing funding for local transportation projects requires the approval of 55% of its voters voting on the proposition, if the proposition proposing the tax includes certain requirements. This measure would prohibit a local government from expending any revenues derived from a special transportation tax approved by 55% of the voters at any time prior to the completion of a statutorily identified capital project funded by revenues derived from another special tax of the same local government that was approved by a 2⁄3 vote. 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 begin delete Assembly, end delete begin insert SENATE end insert begin insert , end insert the begin delete Senate concurring, end delete
begin insert ASSEMBLY CONCURRING, end insert 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.  

Except as otherwise provided by Section 2 of Article
XIII C, a city, county, or special district, by a two-thirds vote of
its voters voting on the proposition, may impose a special tax
within that city, county, or special district, except an ad valorem
tax 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) A 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 the effective date of this article, 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 is held no later than November 6, 1998,
and in compliance with subdivision (b).

(d) (1) Except as otherwise provided in paragraph (2), 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 two-thirds of the voters voting on the proposition. A special
tax is not deemed to have been increased if it is imposed at a rate
not higher than the maximum rate so approved.

(2)  begin insert (A) end insert begin insert   end insert The imposition, extension, or increase of a special tax
by a local government for the purpose of providing funding for
local transportation projects under its jurisdiction, as may otherwise
be authorized by law, requires the approval of 55 percent of the
voters voting on the proposition, if all of the following are met:

begin delete

(A)

end delete

begin insert ( end insert begin insert i) end insert  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.

begin insert

(ii) The ballot proposition requires that at least 50 percent of
the tax proceeds be expended by the local government for programs
or purposes included in a sustainable communities strategy adopted
pursuant to Chapter 2.5 (commencing with Section 65080) of
Division 1 of Title 7 of the Government Code or any successor to
that chapter, as either of them may be amended, or, in the case of
a local government not included within a sustainable communities
strategy, for programs or purposes that are authorized by law to
be included in such a strategy.

end insert begin delete

(B)

end delete

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

begin delete

(C)

end delete

begin insert (iv) end insert  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 the public.

begin insert

(v) The ballot proposition requires a local government, when
expending any of the tax proceeds for an expansion project on the
state highway system, to dedicate a portion of those proceeds, as
determined under statute, for the ongoing maintenance of that
expansion project.

end insert begin delete

(3)

end delete

begin insert ( end insert begin insert B) end insert  A special tax for the purpose of providing funding for local
transportation projects is not deemed to have been increased if it
is imposed at a rate not higher than the maximum rate previously
approved in the manner required by law. begin delete The end delete

begin insert (C) end insert begin insert   end insert begin insert The end insert Legislature shall define local transportation projects
for purposes of this begin delete subdivision end delete begin insert paragraph end insert .

begin delete

(4)

end delete

begin insert ( end insert begin insert D) end insert  A local government shall not expend any revenues derived
from a special tax approved by 55 percent of the voters under begin insert this end insert
paragraph begin delete (2) end delete at any time prior to the completion of a statutorily
identified capital project funded, in whole or in part, by revenues
derived from another special tax of the same local government
that was approved by a two-thirds vote under paragraph (1).