BILL NUMBER: ACA 18	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 12, 2010

INTRODUCED BY   Assembly  Members   Evans
    and Bass   Member
  ______ 

                        MARCH 26, 2009

   A resolution to propose to the people of the State of California
an amendment to the  Constitution of the State, by amending
Section 9 of Article II thereof, amending Sections 8 and 12 of
Article IV thereof, and amending Section 3 of Article XIII 
   A thereof, relating to the state budget.
  Constitution of the State, by amending Sections 24 and
25.5 of Article XIII thereof, and by adding Section 17 to Article XI
thereof, relating to local government finance. 


	LEGISLATIVE COUNSEL'S DIGEST


   ACA 18, as amended,  Evans   ______  .
 State budget.   Local government finance
reform.  
   (1) The California Constitution authorizes the existence of local
governments that can make and enforce ordinances and regulations that
are not in conflict with general laws. The California Constitution
also requires that general ad valorem property tax revenues be
allocated to local jurisdictions in each county in the manner as
provided in statute.  
   This measure would authorize local government agencies, in the
manner provided for by statute, to adopt and implement a Countywide
Strategic Action Plan, and, upon adoption of the plan in a county,
would authorize the county board of supervisors to place on the
ballot a measure to impose an additional countywide sales and use
tax, the revenues of which would be distributed as provided pursuant
to statute and the Countywide Strategic Action Plan. This measure
would prohibit the state from reallocating the proceeds of a non-ad
valorem tax that is imposed by a local government agency, would
specify that general ad valorem property tax revenues are required to
be allocated to jurisdictions in the county in which those revenues
are collected, and would prohibit the direction by statute of the
expenditure of those revenues for any specific purpose or purposes.
 
   (2) The California Constitution prohibits the Legislature from
modifying the manner in which ad valorem property tax revenues are
allocated by law so as to reduce, for any fiscal year, the percentage
of the total amount of property tax revenues in a county that is
allocated among all of the local agencies in that county below the
percentage of the total amount of those revenues that would be
allocated among those agencies for the same fiscal year under the
statutes in effect on November 3, 2004. This prohibition may be
suspended for a fiscal year under specified conditions.  
   This measure would limit the suspension authority to the 2009-10
fiscal year. The measure would, except for specified purposes, also
prohibit the Legislature from reallocating or directing the
expenditure of property tax revenues that are allocated to a
community redevelopment agency under constitutional provisions that
authorize the expenditure by the agency of incremental property tax
revenues in a redevelopment project area.  
   (3) This measure would become operative on January 1, 2011. 

   (1) The California Constitution requires specified bills,
including certain bills making appropriations from the General Fund,
and a bill making a change in state taxes for the purpose of raising
revenue, to be passed in each house of the Legislature by a 2/3 vote.
 
   This measure would exempt General Fund appropriations in the
Budget Bill from the 2/3-vote requirement.  
   This measure also would permit the Legislature, by majority vote
in each house, to propose to the voters a change in a state tax for
purposes of increasing revenue through a statute enacting a bill
identified in the Budget Bill as necessary to implement the Budget
Bill. This measure would provide that, if a majority of the voters
approve the statute, it would go into effect the day after the
election.  
   (2) The California Constitution provides that a statute takes
immediate effect upon enactment if the statute calls for an election,
provides for a tax levy or makes an appropriation for the usual and
current expenses of the state, or is an urgency statute. These
measures are exempt from the voters' power of referendum to approve
or reject a statute.  
   This measure would add, to those statutes that take effect
immediately, statutes enacting the Budget Bill and statutes enacting
bills identified in the Budget Bill as necessary to implement the
Budget Bill, except for statutes to be proposed to the voters as
described above. These statutes, including the statutes to be
proposed to the voters, would be exempt from the voters' power of
referendum. 
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.



   Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, 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 9 of Article II thereof is
amended to read:
      SEC. 9.  (a) The referendum is the power of the electors to
approve or reject a statute or a part of a statute, except a statute
that takes effect immediately or a statute that is required to be
submitted to the electors.
   (b) A referendum measure may be proposed by presenting to the
Secretary of State, within 90 days after the enactment date of the
statute, a petition certified to have been signed by electors equal
in number to 5 percent of the votes for all candidates for Governor
at the last gubernatorial election, asking that the statute or part
of it be submitted to the electors. In the case of a statute enacted
by a bill passed by the Legislature on or before the date the
Legislature adjourns for a joint recess to reconvene in the second
calendar year of the biennium of the legislative session, and in the
possession of the Governor after that date, the petition shall not be
presented on or after January 1 next following the enactment date
unless a copy of the petition is submitted to the Attorney General
pursuant to subdivision (d) of Section 10 before January 1.
   (c) The Secretary of State shall then submit the measure at the
next general election held at least 31 days after it qualifies or at
a special statewide election held prior to that general election. The
Governor may call a special statewide election for the measure.
 
  Second--    That Section 8 of Article IV thereof
is amended to read:
      SEC. 8.  (a) At regular sessions, no bill other than the budget
bill shall be heard or acted on by committee or either house until
the 31st day after the bill is introduced unless the house dispenses
with this requirement by rollcall vote entered in the journal,
three-fourths of the membership concurring.
   (b) The Legislature shall not make a law except by statute and
shall not enact a statute except by bill. A bill shall not be passed
unless it is read by title on three days in each house, except that a
house may dispense with this requirement by rollcall vote entered in
the journal, two-thirds of the membership concurring. A bill shall
not be passed until the bill with amendments has been printed and
distributed to the Members. A bill shall not be passed unless, by
rollcall vote entered in the journal, a majority of the membership of
each house concurs.
   (c) (1) Except as provided in paragraphs (2) and (3), a statute
enacted at a regular session shall go into effect on January 1 next
following a 90-day period from the date of enactment of the statute
and a statute enacted at a special session shall go into effect on
the 91st day after adjournment of the special session at which the
bill was passed.
   (2) A statute, other than a statute establishing or changing
boundaries of any legislative, congressional, or other election
district, enacted by a bill passed by the Legislature on or before
the date the Legislature adjourns for a joint recess to reconvene in
the second calendar year of the biennium of the legislative session,
and in the possession of the Governor after that date, shall go into
effect on January 1 next following the enactment date of the statute
unless, before January 1, a copy of a referendum petition affecting
the statute is submitted to the Attorney General pursuant to
subdivision (d) of Section 10 of Article II, in which event the
statute shall go into effect on the 91st day after the enactment date
unless the petition has been presented to the Secretary of State
pursuant to subdivision (b) of Section 9 of Article II.
   (3) A statute calling an election, a statute providing for a tax
levy, a statute making an appropriation for the usual current
expenses of the State, an urgency statute, a statute enacting the
budget bill, and a statute enacting a budget implementation bill
shall go into effect immediately upon their enactment, except that a
statute enacting a budget implementation bill submitted to the
electors pursuant to subdivision (b) of Section 3 of Article XIII A
shall go into effect the day after the election at which the statute
is approved by the electors. For purposes of this section and Section
3 of Article XIII A, a "budget implementation bill" is a bill that
is identified in the budget bill as containing only changes in law
necessary to implement the budget bill.
   (d) An urgency statute is a statute necessary for immediate
preservation of the public peace, health, or safety. A statement of
facts constituting the necessity shall be set forth in one section of
the bill. In each house the section and the bill shall be passed
separately, each by rollcall vote entered in the journal, two-thirds
of the membership concurring. An urgency statute shall not create or
abolish any office or change the salary, term, or duties of any
office, or grant any franchise or special privilege, or create any
vested right or interest.  
  Third--    That Section 12 of Article IV thereof
is amended to read:
      SEC. 12.  (a) Within the first 10 days of each calendar year,
the Governor shall submit to the Legislature, with an explanatory
message, a budget for the ensuing fiscal year containing itemized
statements for recommended state expenditures and estimated state
revenues. If recommended expenditures exceed estimated revenues, the
Governor shall recommend the sources from which the additional
revenues should be provided.
   (b) The Governor and the Governor-elect may require a state
agency, officer, or employee to furnish whatever information is
deemed necessary to prepare the budget.
   (c) (1) The budget shall be accompanied by a budget bill itemizing
recommended expenditures.
   (2) The budget bill shall be introduced immediately in each house
by the persons chairing the committees that consider the budget.
   (3) The Legislature shall pass the budget bill by midnight on June
15 of each year.
   (4) Until the budget bill has been enacted, the Legislature shall
not send to the Governor for consideration any bill appropriating
funds for expenditure during the fiscal year for which the budget
bill is to be enacted, except emergency bills recommended by the
Governor or appropriations for the salaries and expenses of the
Legislature.
   (d) Except for the budget bill, a bill shall not contain more than
one item of appropriation, and that for one certain, expressed
purpose. Appropriations from the General Fund of the State, except
appropriations for the public schools or appropriations made in the
budget bill, are void unless passed in each house by rollcall vote
entered in the journal, two-thirds of the membership concurring. For
purposes of this section and Section 8, a "budget bill" is a bill
that makes appropriations for the support of the government of the
State for an entire fiscal year.
   (e) The Legislature may control the submission, approval, and
enforcement of budgets and the filing of claims for all state
agencies.
   (f) For the 2004-05 fiscal year, or any subsequent fiscal year,
the Legislature may not send to the Governor for consideration, nor
may the Governor sign into law, a budget bill that would appropriate
from the General Fund, for that fiscal year, a total amount that,
when combined with all appropriations from the General Fund for that
fiscal year made as of the date of the budget bill's passage, and the
amount of any General Fund moneys transferred to the Budget
Stabilization Account for that fiscal year pursuant to Section 20 of
Article XVI, exceeds General Fund revenues for that fiscal year
estimated as of the date of the budget bill's passage. That estimate
of General Fund revenues shall be set forth in the budget bill passed
by the Legislature.  
  Fourth--    That Section 3 of Article XIII A
thereof is amended to read:
      Section 3.  (a) Except as provided by subdivision (b), from and
after the effective date of this article, a change in a state tax
enacted for the purpose of increasing revenues collected pursuant
thereto, whether by an increased rate or a change in the method of
computation, must be imposed by an act passed by not less than
two-thirds of the membership of each house of the Legislature, except
that a new ad valorem tax on real property, or a sales or
transaction tax on the sale of real property, shall not be imposed.
   (b) The Legislature may propose to the electors a change in a
state tax for the purpose of increasing revenue collected pursuant
thereto through a statute enacting a budget implementation bill. A
statute enacting a budget implementation bill submitted to the
electors pursuant to this subdivision shall become effective only if
it is approved by a majority of the votes cast thereon by the
electors. If provisions of two or more statutes enacting budget
implementation bills submitted to the electors pursuant to this
subdivision conflict, the provisions of the statute receiving the
highest affirmative vote from the electors shall prevail. 
   First--    That Section 17 is added to Article XI
thereof, to read:  
      SEC. 17.  (a) In accordance with statute, local agencies in a
county may adopt and implement a Countywide Strategic Action Plan
that includes making effective use of existing resources and
providing for the means whereby additional revenue would accelerate
progress toward community goals. A Countywide Strategic Action Plan
shall provide for the sharing of local tax revenues between local
agencies within the county that is in addition to any other authority
conferred by this Constitution for the sharing of local tax revenues
between local agencies.
   (b) In a county where a Countywide Strategic Action Plan is
adopted, the board of supervisors may, with the approval of a
majority of its membership, adopt an ordinance to place on the ballot
at a countywide election a measure to impose a countywide sales and
use tax that is in addition to any other sales and use tax or any
transactions and use tax imposed within the county. Any tax measure
placed on the ballot pursuant to this subdivision is approved if it
receives the affirmative vote of a majority of the voters voting on
the proposition.
   (c) Notwithstanding any other law, the proceeds, net of refunds,
of an additional local sales and use tax imposed in a county pursuant
to subdivision (b) shall be distributed by the county pursuant to
statute and the Countywide Strategic Action Plan.
   (d) Proceeds of an additional local sales and use tax imposed
pursuant to subdivision (b) that are distributed to a school district
or a community college district shall not be considered allocated
local proceeds of taxes for purposes of Section 8 of Article XVI.
   (e) For purposes of this section, "local government agency" means
any local government as defined in Section 1 of Article XIII C. 

   Second--    That Section 24 of Article XIII thereof
is amended to read: 
      SEC. 24.   (a)    The Legislature may not
impose taxes for local purposes but may authorize local governments
to impose them. 
    Money 
    Moneys  appropriated from state funds to a local
government for its local purposes may be used as provided by law.

    Money 
    Moneys  subvened to a local government under Section 25
may be used for state or local purposes. 
   (b) The proceeds of any non-ad valorem tax or an assessment levied
or imposed by a county, city, city and county, including a charter
city or county, any special district, or any other local or regional
governmental entity, belong exclusively to the entity that imposed
the tax or assessment and may not be reallocated by statute. Ad
valorem property tax revenues allocated pursuant to Section 1 of
Article XIII A shall be allocated exclusively among the jurisdictions
within the county in which they are collected in compliance with
Section 25.5, and shall not be directed by statute for expenditure
for a particular purpose or purposes. 
   Third--    That Section 25.5 of Article XIII thereof
is amended to read: 
      SEC. 25.5.  (a) On or after November 3, 2004, the Legislature
shall not enact a statute to do any of the following:
   (1) (A) Except as otherwise provided in subparagraph (B), modify
the manner in which ad valorem property tax revenues are allocated in
accordance with subdivision (a) of Section 1 of Article XIII A so as
to reduce for any fiscal year the percentage of the total amount of
ad valorem property tax revenues in a county that is allocated among
all of the local agencies in that county below the percentage of the
total amount of those revenues that would be allocated among those
agencies for the same fiscal year under the statutes in effect on
November 3, 2004. For purposes of this subparagraph, "percentage"
does not include any property tax revenues referenced in paragraph
(2).
   (B)  Beginning with the 2008-09   For only
the 2009-10  fiscal year and  except as otherwise
provided in   subject to  subparagraph (C),
subparagraph (A) may be suspended  for a fiscal year
 if all of the following conditions are met:
   (i) The Governor issues a proclamation that declares that, due to
a severe state fiscal hardship, the suspension of subparagraph (A) is
necessary.
   (ii) The Legislature enacts an urgency statute, pursuant to a bill
passed in each house of the Legislature by rollcall vote entered in
the journal, two-thirds of the membership concurring, that contains a
suspension of subparagraph (A) for that fiscal year and does not
contain any other provision.
   (iii) No later than the effective date of the statute described in
clause (ii), a statute is enacted that provides for the full
repayment to local agencies of the total amount of revenue losses,
including interest as provided by law, resulting from the
modification of ad valorem property tax revenue allocations to local
agencies. This full repayment shall be made not later than the end of
the third fiscal year immediately following the fiscal year to which
the modification applies. 
   (C) (i) Subparagraph (A) shall not be suspended for more than two
fiscal years during any period of 10 consecutive fiscal years, which
period begins with the first fiscal year for which subparagraph (A)
is suspended.  
   (ii) Subparagraph (A) shall not be suspended during any fiscal
year if the full repayment required by a statute enacted in
accordance with clause (iii) of subparagraph (B) has not yet been
completed.  
   (iii) Subparagraph (A) shall not be suspended during any fiscal
year if the amount that was required to be paid to cities, counties,
and cities and counties under Section 10754.11 of the Revenue and
Taxation Code, as that section read on November 3, 2004, has not been
paid in full prior to the effective date of the statute providing
for that suspension as described in clause (ii) of subparagraph (B).
 
   (iv) 
    (C)  A suspension of subparagraph (A) shall not result
in a total ad valorem property tax revenue loss to all local agencies
within a county that exceeds 8 percent of the total amount of ad
valorem property tax revenues that were allocated among all local
agencies within that county for the fiscal year immediately preceding
the fiscal year for which subparagraph (A) is suspended.
   (2) (A) Except as otherwise provided in subparagraphs (B) and (C),
restrict the authority of a city, county, or city and county to
impose a tax rate under, or change the method of distributing
revenues derived under, the Bradley-Burns Uniform Local Sales and Use
Tax Law set forth in Part 1.5 (commencing with Section 7200) of
Division 2 of the Revenue and Taxation Code, as that law read on
November 3, 2004. The restriction imposed by this subparagraph also
applies to the entitlement of a city, county, or city and county to
the change in tax rate resulting from the end of the revenue exchange
period, as defined in Section 7203.1 of the Revenue and Taxation
Code as that section read on November 3, 2004.
   (B) The Legislature may change by statute the method of
distributing the revenues derived under a use tax imposed pursuant to
the Bradley-Burns Uniform Local Sales and Use Tax Law to allow the
State to participate in an interstate compact or to comply with
federal law.
   (C) The Legislature may authorize by statute two or more
specifically identified local agencies within a county, with the
approval of the governing body of each of those agencies, to enter
into a contract to exchange allocations of ad valorem property tax
revenues for revenues derived from a tax rate imposed under the
Bradley-Burns Uniform Local Sales and Use Tax Law. The exchange under
this subparagraph of revenues derived from a tax rate imposed under
that law shall not require voter approval for the continued
imposition of any portion of an existing tax rate from which those
revenues are derived.
   (3) Except as otherwise provided in subparagraph (C) of paragraph
(2), change for any fiscal year the pro rata shares in which ad
valorem property tax revenues are allocated among local agencies in a
county other than pursuant to a bill passed in each house of the
Legislature by rollcall vote entered in the journal, two-thirds of
the membership concurring.
   (4) Extend beyond the revenue exchange period, as defined in
Section 7203.1 of the Revenue and Taxation Code as that section read
on November 3, 2004, the suspension of the authority, set forth in
that section on that date, of a city, county, or city and county to
impose a sales and use tax rate under the Bradley-Burns Uniform Local
Sales and Use Tax Law.
   (5) Reduce, during any period in which the rate authority
suspension described in paragraph (4) is operative, the payments to a
city, county, or city and county that are required by Section 97.68
of the Revenue and Taxation Code, as that section read on November 3,
2004.
   (6) Restrict the authority of a local entity to impose a
transactions and use tax rate in accordance with the Transactions and
Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2
of the Revenue and Taxation Code), or change the method for
distributing revenues derived under a transaction and use tax rate
imposed under that law, as it read on November 3, 2004. 
   (b) On and after January 1, 2011, the Legislature shall not enact
a statute to borrow or reallocate, or restrict or otherwise direct
the expenditure for any purpose or purposes of, revenues derived from
taxes on ad valorem real property or tangible personal property
allocated to a community redevelopment agency pursuant to Section 16
of Article XVI, except for the purpose of (1) making payments to
affected taxing entities pursuant to Sections 33607.5 and 33607.7 of
the Health and Safety Code, or successor statutes requiring community
redevelopment agency payments to taxing entities; or (2) increasing,
improving, or preserving the supply of low- and moderate-income
housing available at affordable housing cost.  
   (b) 
    (c)  For purposes of this section, the following
definitions apply:
   (1) "Ad valorem property tax revenues" means all revenues derived
from the tax collected by a county under subdivision (a) of Section 1
of Article XIII A, regardless of any of this revenue being otherwise
classified by statute.
   (2) "Local agency" has the same meaning as specified in Section 95
of the Revenue and Taxation Code as that section read on November 3,
2004.
   Fourth-    That the amendments to the California
Constitution made by this measure shall become operative on January
1, 2011. 
   Fifth-    That if any provision of this measure or
the applicability thereof to any person or circumstance is found to
be unconstitutional or otherwise invalid, the finding shall not
affect the remaining provisions or applications of this measure to
other persons or circumstances, and to that extent the provisions of
this measure are deemed to be severable. 
                                       ____ CORRECTIONS
Heading--Amended line--Page 1.
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