Senate Constitutional AmendmentNo. 7


Introduced by Senator Wolk

(Coauthor: Senator Leno)

(Coauthor: Assembly Member Williams)

December 3, 2012


Senate Constitutional Amendment No. 7—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 1 and 4 of, and by adding Section 4.5 to, 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 public libraries.

LEGISLATIVE COUNSEL’S DIGEST

SCA 7, as introduced, Wolk. Local government financing: public libraries: 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 to service bonded indebtedness incurred to fund public library facilities, that is approved by 55% of the voters of the city, county, city and 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, city and county, or special district for the purpose of funding public libraries, upon the approval of 55% of its voters voting on the proposition, and 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, 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 issued to fund public libraries.

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

P2    1Resolved by the Senate, the Assembly 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.

14(b) The limitation provided for in subdivision (a) shall not apply
15to ad valorem taxes or special assessments to pay the interest and
16redemption charges on any of the following:

17(1) Indebtedness approved by the voters prior to July 1, 1978.

P3    1(2) Bonded indebtedness for the acquisition or improvement of
2real property approved on or after July 1, 1978, by two-thirds of
3the votes cast by the voters voting on the proposition.

4(3) Bonded indebtedness incurred by a school district,
5community college district, or county office of educationbegin delete forend deletebegin insert to end insert
6begin insertfundend insert the construction, reconstruction, rehabilitation, or replacement
7of school facilities, including the furnishing and equipping of
8school facilities, or the acquisition or lease of real property for
9school facilities, approved by 55 percent of the voters of the district
10or county, as appropriate, voting on the proposition on or afterbegin delete the end delete
11begin deleteeffective date of the measure adding this paragraphend deletebegin insert November 8, end insert
12begin insert2000end insert. This paragraph shall apply only if the proposition approved
13by the voters and resulting in the bonded indebtedness includes
14all of the following accountability requirements:

15(A) A requirement that the proceeds from the sale of the bonds
16be used only for the purposes specified inbegin delete Article XIIIend deletebegin deleteend deletebegin deleteA, Section end delete
17begin delete1(b)(3),end deletebegin insert this paragraphend insert and not for any other purpose, including
18teacher and administrator salaries and other school operating
19expenses.

20(B) A list of the specific school facilities projects to be funded
21and certification that the school district board, community college
22board, or county office of education has evaluated safety, class
23size reduction, and information technology needs in developing
24that list.

25(C) A requirement that the school district board, community
26college board, or county office of education conduct an annual,
27independent performance audit to ensure that the funds have been
28expended only on the specific projects listed.

29(D) A requirement that the school district board, community
30college board, or county office of education conduct an annual,
31independent financial audit of the proceeds from the sale of the
32bonds until all of those proceeds have been expended for the school
33facilities projects.

begin insert

34(4) Bonded indebtedness, approved by 55 percent of the voters
35of a city, county, city and county, or special district, as applicable,
36voting on the proposition on or after the effective date of the
37measure adding this paragraph, incurred by the city, county, city
38and county, or special district to fund the construction,
39reconstruction, rehabilitation, or replacement of public library
40facilities, including the furnishing and equipping of public library
P4    1facilities, or the acquisition or lease of real property for public
2library facilities.

end insert

3(c) Notwithstanding any other provisions of law or of this
4Constitution,begin insert aend insert schoolbegin delete districts, community college districts, and end delete
5begin deletecounty offices of educationend deletebegin insert district, community college district, end insert
6begin insertcounty office of education, city, county, city and county, or special end insert
7begin insertdistrictend insert may levy a 55 percent vote ad valorem tax pursuant to
8subdivision (b).

9

Second--  

That Section 4 of Article XIII A thereof is amended
10to read:

11

SEC. 4.  

begin deleteCities, Counties and special districts, end deletebegin insertExcept as end insert
12begin insertprovided by Section 4.5, a city, county, or special district, end insertby a
13two-thirds vote ofbegin delete the qualified electors of such districtend deletebegin insert its voters end insert
14begin insertvoting on the propositionend insert, may imposebegin delete special taxes on such districtend delete
15begin insert a special tax within that city, county, or special districtend insert, exceptbegin insert anend insert
16 ad valorembegin delete taxesend deletebegin insert taxend insert on real property or abegin delete transactionend deletebegin insert transactionsend insert
17 tax or sales tax on the sale of real property withinbegin delete such City, Countyend delete
18begin insert that city, county,end insert or special district.

19

Third--  

That Section 4.5 is added to Article XIII A thereof, to
20read:

21

SEC. 4.5.  

The imposition, extension, or increase of a special
22tax by a city, county, city and county, or special district, as may
23otherwise be authorized by law for the purpose of funding public
24libraries, is subject to approval by 55 percent of the voters in the
25city, county, city and county, or special district, as applicable,
26voting on the proposition.

27

Fourth--  

That Section 2 of Article XIII C thereof is amended to
28read:

29

SEC. 2.  

begin deleteLocal Government Tax Limitation. end deleteNotwithstanding
30any other provision of this Constitution:

31(a) begin deleteAll taxes end deletebegin insertAny tax end insertimposed by any local governmentbegin delete shall be end delete
32begin 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.
33begin delete Special purpose districtsend deletebegin insert A special districtend insert orbegin delete agenciesend deletebegin insert agencyend insert,
34includingbegin insert aend insert schoolbegin delete districts, shall haveend deletebegin insert district, hasend insert nobegin delete powerend delete
35begin insert authorityend insert to levybegin insert aend insert generalbegin delete taxesend deletebegin insert taxend insert.

36(b) begin deleteNo end deletebegin insertA end insertlocal government maybegin insert notend insert impose, extend, or increase
37any general tax unless and until that tax is submitted to the
38electorate and approved by a majority vote. A general taxbegin delete shallend deletebegin insert isend insert
39 notbegin delete beend delete deemed to have been increased if it is imposed at a rate not
40higher than the maximum rate so approved. The election required
P5    1by this subdivision shall be consolidated with a regularly scheduled
2general election for members of the governing body of the local
3government, except in cases of emergency declared by a unanimous
4vote of the governing body.

5(c) Any general tax imposed, extended, or increased, without
6voter approval, by any local government on or after January 1,
71995, and prior to the effective date of this article,begin delete shallend deletebegin insert mayend insert
8 continue to be imposed only ifbegin insert that general tax isend insert approved by a
9majority vote of the voters voting in an election on the issue of the
10imposition, which election shall be heldbegin delete within two years of the end delete
11begin deleteeffective date of this articleend deletebegin insert no later than November 6, 1996,end insert and
12in compliance with subdivision (b).

13(d) begin deleteNo end deletebegin insertExcept as provided by Section 4.5 of Article XIIIend insertbegin insertend insertbegin insertA, a end insert
14local government maybegin insert notend insert impose, extend, or increase any special
15tax unless and until that tax is submitted to the electorate and
16approved by a two-thirds vote. A special taxbegin delete shallend deletebegin insert isend insert notbegin delete beend delete deemed
17to have been increased if it is imposed at a rate not higher than the
18maximum rate so approved.

19

Fifth--  

That Section 3 of Article XIII D thereof is amended to
20read:

21

SEC. 3.  

begin deleteProperty Taxes, Assessments, Fees and Charges end delete
22begin deleteLimited. end delete(a) begin deleteNo end deletebegin insertAn agency shall not assess a end inserttax, assessment, fee,
23or chargebegin delete shall be assessed by any agencyend delete upon any parcel of
24property or upon any person as an incident of property ownership
25except:

26(1) The ad valorem property tax imposed pursuant to Article
27XIII and Article XIII A.

28(2) Any special tax receiving a two-thirds vote pursuant to
29Section 4 of Article XIII Abegin insert or, as applicable, a 55-percent vote end insert
30begin insertpursuant to Section 4.5 of Article XIIIend insertbegin insertend insertbegin insertAend insert.

31(3) Assessments as provided by this article.

32(4) Fees or charges for property related services as provided by
33this article.

34(b) For purposes of this article, fees for the provision of electrical
35or gas servicebegin delete shallend deletebegin insert areend insert notbegin delete beend delete deemed charges or fees imposed as
36an incident of property ownership.

37

Sixth--  

That Section 18 of Article XVI thereof is amended to
38read:

39

SEC. 18.  

(a) No county, city, town, township, board of
40education, or school district, shall incur any indebtedness or
P6    1liability in any manner or for any purpose exceeding in any year
2the income and revenue provided forbegin delete suchend deletebegin insert thatend insert year, without the
3assent of two-thirds of the voters of the public entity voting at an
4election to be held for that purpose, except that with respect to any
5such public entitybegin delete whichend deletebegin insert thatend insert is authorized to incur indebtedness
6for public school purposes, any proposition for the incurrence of
7indebtedness in the form of general obligation bonds for the
8purpose of repairing, reconstructingbegin insert,end insert or replacing public school
9buildings determined, in the manner prescribed by law, to be
10structurally unsafe for school use, shall be adopted upon the
11approval of a majority of the voters of the public entity voting on
12the proposition atbegin delete suchend deletebegin insert thatend insert election; nor unless before or at the
13time of incurringbegin delete such indebtednessend deletebegin insert the indebtedness,end insert provision
14shall be made for the collection of an annual tax sufficient to pay
15the interest onbegin delete suchend deletebegin insert theend insert indebtedness as it falls due, and to provide
16for a sinking fund for the payment of the principal thereof, on or
17before maturity, which shall not exceed forty years from the time
18of contracting the indebtedness.

19(b) Notwithstanding subdivision (a), on or afterbegin delete the effective end delete
20begin deletedate of the measure adding this subdivision,end deletebegin insert November 8, 2000,end insert
21 in the case of any school district, community college district, or
22county office of education, any proposition for the incurrence of
23indebtedness in the form of general obligation bonds for the
24construction, reconstruction, rehabilitation, or replacement of
25school facilities, including the furnishing and equipping of school
26facilities, or the acquisition or lease of real property for school
27facilities, shall be adopted upon the approval of 55 percent of the
28voters of the district or county, as appropriate, voting on the
29proposition at an election. This subdivision shall apply only to a
30proposition for the incurrence of indebtedness in the form of
31general obligation bonds for the purposes specified in this
32subdivision if the proposition meets all of the accountability
33requirements of paragraph (3) of subdivision (b) of Section 1 of
34Article XIII A.

begin insert

35(c) Notwithstanding subdivision (a), on or after the effective
36 date of the measure adding this subdivision, in the case of any city,
37county, or city and county, any proposition to incur indebtedness
38in the form of general obligation bonds shall be adopted by 55
39percent of the voters of the city, county, or city and county, as
40applicable, voting on the proposition at an election, where the
P7    1general obligation bonds would fund public libraries, including,
2but not limited to, the construction, reconstruction, rehabilitation,
3or replacement of public library facilities, the furnishing and
4equipping of public library facilities, or the acquisition or lease
5of real property for public library facilities.

end insert
begin delete

6(c)

end delete

7begin insert(d)end insert When two or more propositions for incurring any
8indebtedness or liability are submitted at the same election, the
9votes cast for and against each proposition shall be counted
10separately, and when two-thirds or a majority or 55 percent of the
11voters, as the case may be, voting on any one of those propositions,
12vote in favor thereof, the proposition shall be deemed adopted.



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