BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 553
          Author:   Yee (D)
          Amended:  8/5/13
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 5/1/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           SENATE FLOOR  :  39-0, 5/29/13
          AYES:  Anderson, Beall, Berryhill, Block, Calderon, Cannella,  
            Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,  
            Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,  
            Padilla, Pavley, Price, Roth, Steinberg, Torres, Walters,  
            Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Vacancy

           ASSEMBLY FLOOR  :  78-0, 8/22/13 (Consent) - See last page for  
            vote


           SUBJECT  :    Local government:  assessment:  elections procedures

           SOURCE  :     Howard Jarvis Taxpayers Association


           DIGEST  :    This bill requires local agencies to follow new  
          procedures for Proposition 218 (1996) elections proposing to  
          impose or increase property-related fees.  If the agency opts to  
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          submit the proposed fee for approval by 2/3 of the registered  
          voters residing in the affected area, and the county conducts  
          the election, the agency is required to reimburse the county for  
          actual and reasonable costs incurred by the county.

           Assembly Amendments  change the 2/3-vote of approval from the  
          electorate to registered voters residing in the affected area.

           ANALYSIS  :    Proposition 218 (Prop 218) defines a  
          property-related fee or charge as any levy, other than an ad  
          valorem tax, a special tax, or an assessment, imposed by an  
          agency upon a parcel or upon a person as an incident of property  
          ownership, including a user fee or charge for a property-related  
          service.  Before a local government can charge a new  
          property-related fee, or increase an existing one, Prop 218  
          requires local officials to:

             Identify the parcels to be charged.
             Calculate the fee for each parcel.
             Notify the parcels' owners in writing about the fees and the  
             hearing.
             Hold a public hearing to consider and count protests.
             Abandon the fees if a majority of the parcels' owners  
             protest.

          New or increased property-related fees require either a:

             Majority-vote of the affected property owners;
             2/3 registered voter approval; or,
             Weighted ballot approval by the affected property owners.

          These election requirements do not apply to property-related  
          fees for sewer, water, or refuse collection services.

          State law specifies how public agencies must provide notice and  
          tabulate protests for new or increased property-related fees or  
          charges (AB 1260 (Caballero), Chapter 280, Statutes of 2007).

          This bill, in addition to any other procedures adopted by a  
          local government agency pursuant to Prop 218, adds the  
          following: 

            1. Voter-approval  .  If the agency opts to submit the proposed  
             fee or charge for approval by a 2/3-vote of the registered  

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             voters residing in the affected area, this bill requires:

                   The agency's election to be conducted by an elections  
                official or their designee.
                   Reimbursement must be provided for actual and  
                reasonable costs incurred by the county, for non-county  
                elections.

            1. Property owner approval  .  If an agency opts to submit a  
             proposed fee or charge for approval by a majority vote of  
             property owners, this bill requires each notice of a proposed  
             new or increased property related fee to include: 

                   The statement "OFFICIAL BALLOT ENCLOSED," in no  
                smaller than 16-point bold type, on the face of the  
                envelope.  Below the first, "OFFICAL BALLOT ENCLOSED"  
                statement, an agency may repeat the phrase in a language  
                or languages other than English.
                   The agency's return address.
                   The date and location where the ballot will be  
                tabulated.
                   The place where the person returning may indicate  
                their name.
                   A reasonable identification of the parcel and  
                indication of the persons support or opposition.

          3. This bill requires that ballots:  

                 Be received at the address indicated or site of the  
               public testimony.
                 Remain sealed until the tabulation of ballots.
                 Be treated as disclosable public records, available for  
               public inspection by any interested party, during and after  
               tabulation, and if applicable, the information used to  
               determine the weight of each ballot.

          4.This bill requires the ballot tabulation process:

                 Be tabulated in a location accessible to the public.
                 Begin at the conclusion of the public hearing on the  
               proposed fee.
                 Be conducted by an impartial person with no vested  
               interest in the outcome, including, but not limited to, the  
               clerk of an agency.

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                 Be in public view, including the unsealing of the  
               ballot, if the agency uses agency personnel, or contracts  
               with a vendor, or affiliates, for the ballot tabulation or  
               participated in the research, design, engineering, public  
               education, or promotion of the fee.

          1.This bill allows the governing body of the agency to continue  
            ballot tabulation at a different time or different location,  
            accessible to the public, provided the governing board  
            announces the time and location at the hearing, and is posted  
            in a location accessible to the public.  

           Comments
           
          The Supreme Court, in Greene v. Marin County Flood Control and  
          Water Conservation District, upheld a 2007 property-related fee  
          election, in which nearly 1,700 ballots were disqualified for  
          lack of a signature.  The Greene decision created concerns about  
          transparency in the fee ballot process among some taxpayer  
          advocates.  Taxpayer advocates want to further clarify  
          procedures local officials must use to seek approval of a  
          property-related fee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, there are  
          unknown state-reimbursable mandate costs.  By requiring local  
          agencies to follow new procedures for property-related fee  
          elections, this bill creates a state-mandated local program by  
          imposing a higher level of service on local officials.  If the  
          Commission on State Mandates were to approve a test claim by  
          local entities claiming reimbursement for the costs related to  
          this higher level of service, this bill could have an unknown  
          state General Fund impact.

           SUPPORT  :   (Verified  8/23/13)

          Howard Jarvis Taxpayers Association (source)
          California Taxpayers Association
          Common Cause

           ARGUMENTS IN SUPPORT  :    California Taxpayers Association states  
          "Transparency in the electoral process is critical for promoting  

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          public trust in a democracy.  SB 553 increases transparency by  
          requiring an independent part to determine the outcome of a fee  
          election; requiring ballots to be preserved for a specified time  
          period; and authorizing public inspection of retained ballots  
          subsequent to an election.  This approach also helps to increase  
          ballot security and government accountability."

           ASSEMBLY FLOOR  :  78-0, 8/22/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Vacancy, Vacancy


          AB:k  8/23/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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