BILL NUMBER: SCA 7	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wolk
   (Coauthor: Senator Leno)
   (Coauthor: Assembly Member Williams)

                        DECEMBER 3, 2012

   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 2/3 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 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 issued
to fund public libraries.
   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 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  One   1 
percent  (1%)  of the full cash value of 
such   that  property. The  one 
 1  percent  (1%)  tax  to
  shall  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  for
  to fund  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  the effective date of the
measure adding this paragraph   November 8, 2000  .
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  Article XIII
    A, Section 1(b)(3), 
 this paragraph  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. 
   (4) 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, or replacement of public library
facilities, including the furnishing and equipping of public library
facilities, or the acquisition or lease of real property for public
library facilities. 
   (c) Notwithstanding any other provisions of law or of this
Constitution,  a  school  districts, community
college districts, and county offices of education  
district, community college district, county office of education,
city, county, city and county, or special district  may levy a
55 percent vote ad valorem tax pursuant to subdivision (b).
  Second--  That Section 4 of Article XIII A thereof is amended to
read:
      SEC. 4.   Cities, Counties and special districts,
 Except as provided by Section 4.5, a city, county, or
special district,  by a two-thirds vote of  the
qualified electors of such district   its voters voting
on the proposition  , may impose  special taxes on such
district   a special tax within that city, county, or
special district  , except  an  ad valorem 
taxes   tax  on real property or a 
transaction  transactions  tax or sales tax on the
sale of real property within  such City, County 
 that city, county,  or special district.
  Third--  That Section 4.5 is added to Article XIII A thereof, to
read:
      SEC. 4.5.  The imposition, extension, or increase of a special
tax by a city, county, city and county, or special district, as may
otherwise be authorized by law for the purpose of funding public
libraries, is subject to approval by 55 percent of the voters in the
city, county, city and county, or special district, as applicable,
voting on the proposition.
  Fourth--  That Section 2 of Article XIII C thereof is amended to
read:
      SEC. 2.   Local Government Tax Limitation. 
Notwithstanding any other provision of this Constitution:
   (a)  All taxes   Any tax  imposed by any
local government  shall be deemed to be   is
 either  a  general  taxes   tax
 or  a  special  taxes   tax 
.  Special purpose districts   A special
district  or  agencies   agency  ,
including  a  school  districts, shall have
  district, has  no  power  
authority  to levy  a  general  taxes 
 tax  .
   (b)  No   A    local government
may  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  shall   is
 not be  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,  shall 
 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
 within two years of the effective date of this article
  no later than November 6, 1996,  and in
compliance with subdivision (b).
   (d)  No   Except as provided by Section 4.5
of Article XIII     A, a  local government may
 not  impose, extend, or increase any special tax unless
and until that tax is submitted to the electorate and approved by a
two-thirds vote. A special tax  shall   is 
not  be  deemed to have been increased if it is
imposed at a rate not higher than the maximum rate so approved.
  Fifth--  That Section 3 of Article XIII D thereof is amended to
read:
      SEC. 3.   Property Taxes, Assessments, Fees and Charges
Limited.  (a)  No   An agency shall
not assess a  tax, assessment, fee, or charge  shall be
assessed by any agency  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 a two-thirds vote pursuant to
Section 4 of Article XIII A  or, as applicable, a 55-percent vote
pursuant to Section 4.5 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  shall   are  not
 be  deemed charges or fees imposed as an incident
of property ownership.
  Sixth--  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  such   that
 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  which
  that  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  ,  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  such   that  election;
nor unless before or at the time of incurring  such
indebtedness   the indebtedness,  provision shall
be made for the collection of an annual tax sufficient to pay the
interest on  such   the  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  the
effective date of the measure adding this subdivision,  
November 8, 2000,  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. 
   (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 public libraries, including, but not
limited to, the construction, reconstruction, rehabilitation, or
replacement of public library facilities, the furnishing and
equipping of public library facilities, or the acquisition or lease
of real property for public library facilities.  
   (c) 
    (d)  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.