BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 321
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          Date of Hearing:  July 7, 2009

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     SB 321 (Benoit) - As Amended:  June 22, 2009

                               AS PROPOSED TO BE AMENDED

          SENATE VOTE  :  39-0
           
          SUBJECT  :  Local government: assessments: election requirements.

           SUMMARY  :  Imposes additional requirements on local governments  
          when conducting assessment ballot proceedings pursuant to  
          Proposition 218.  Specifically,  this bill  :   

          1)Requires the phrase "OFFICIAL BALLOT ENCLOSED" to be printed,  
            in no smaller than 16-point bold type, on envelopes mailed to  
            property owners containing the notices and assessment ballots.  
             Allows, but does not require, the local agency to print this  
            phrase in a language or languages other than English, in  
            addition to printing it in English, if the agency deems such  
            translations to be appropriate.

          2)Provides that for the purposes of tabulating assessment  
            ballots, an impartial person includes, but is not limited to,  
            the clerk of the agency that has proposed the assessment.

          3)Requires assessment ballots that are tabulated by agency  
            personnel or by a vendor contracted by the agency that also  
            participated in the research, design, engineering, public  
            education, or promotion of the assessment, to be unsealed and  
            tabulated in public view at the conclusion of the public  
            hearing on the proposed assessment.  Requires the ballots to  
            be unsealed and tabulated in a manner as to permit all  
            interested persons to meaningfully monitor the accuracy of the  
            tabulation process.

          4)Permits a governing body of an agency that has proposed an  
            assessment to continue the tabulation of ballots after the  
            public hearing on that proposed assessment at a different time  
            or location accessible to the public, provided that the  
            governing body announces the time and location of the hearing.

          5)Requires that the information used to determine the weight of  








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            each assessment ballot be treated as a disclosable public  
            record.

          6)Requires assessment ballots to be preserved for a minimum of  
            two years, after which they may be destroyed pursuant to  
            provisions of existing law.

          7)Makes technical and corresponding changes.

           EXISTING LAW  : 

          1)Provides notice, protest, and hearing procedures for the  
            levying of new or increased assessments or property related  
            fees or charges by local government agencies pursuant to  
            Proposition 218.
           
          2)Requires, during and after the tabulation, that assessment  
            ballots be treated as public documents and be available to  
            both the proponents and opponents.

          3)Requires that an impartial person designated by the agency who  
            does not have a vested interest in the outcome of the proposed  
            assessment must tabulate the ballots.

           FISCAL EFFECT  :   Unknown.  State-mandated local program;  
          contains a self-financing disclaimer.

           COMMENTS  :   

           1)Author's Amendments  :  Pursuant to a commitment made by the  
            author in a prior committee, the author is proposing to amend  
            this bill to allow (but not require) local agencies to print  
            the "OFFICIAL BALLOT ENCLOSED" indicia on assessment ballot  
            envelopes in a language or languages other than English, in  
            addition to printing it in English, if the local agency  
            decides it is appropriate to do so.  This analysis reflects  
            those proposed author's amendments.  
           
           2)Purpose of the Bill  :  According to the author:

               SB 321 enhances the rights of property owners by further  
               clarifying the statutes that implement Proposition 218,  
               which directs how local benefit assessments may be  
               conducted.  These changes are essential in order to  
               preserve the accuracy, transparency, and integrity of the  








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               benefit assessment election process. Specifically, SB 321  
               would require that the phrase "OFFICIAL BALLOT ENCLOSED" be  
               printed, in no smaller than 16-point bold type, on  
               envelopes mailed to property owners containing the notices  
               and assessment ballots; and that an impartial person -  
               someone who did not participate in the research, design,  
               engineering, public education, or promotion of the benefit  
               assessment - tabulate the benefit assessment ballots or in  
               the case of agency personnel tabulating the ballots, the  
               ballots must be counted at a public hearing; and that all  
               local benefit assessment ballots be preserved for at least  
               two years, to be disposed after that in accordance with  
               existing law.

           3)Proposition 218 Overview  :  In November 1996, California voters  
            approved Proposition 218, a constitutional amendment which  
            restricted local officials' ability to impose taxes,  
            assessments, and property-related fees, and imposed various  
            voter approval requirements on these levies.  Proposition 218  
            also allowed local voters to use the initiative power to  
            reduce and repeal local taxes, assessments and fees and  
            charges.  Depending on the type of levy, Proposition 218  
            requires one of four different types of procedures to be used  
            to obtain the approval of voters or of property owners before  
            most types of local taxes, fees, assessments, or charges can  
            be imposed, extended, or increased.  This bill specifically  
            deals with the levy of an assessment. 

            An assessment is a levy or charge on real property by an  
            agency for a special benefit conferred upon that property.   
            The assessment imposed on any parcel cannot exceed the  
            reasonable cost of the special benefit conferred on that  
            parcel.  Prior to imposing an assessment, the agency must mail  
            a notice to all the property owners subject to the assessment  
            along with a ballot on which the property owner can indicate  
            his or her support of or opposition to the proposed  
            assessment.  Each ballot is weighted based on the amount of  
            the assessment for that property owner.  Not sooner than 45  
            days after mailing the notice and ballots to property owners,  
            the agency must conduct a public hearing on the proposed  
            assessment.  Upon conclusion of that public hearing, the  
            assessment may not be imposed if ballots submitted in  
            opposition to the assessment exceed the ballots submitted in  
            favor of the assessment, factoring in the appropriate weight  
            for each ballot.  These assessment proceedings are not  








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            considered to be elections under state law.

           4)Double-Referral  :  This bill was heard in the Assembly Local  
            Government Committee on July 1, 2009, and was approved on a  
            7-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Howard Jarvis Taxpayers Association (sponsor)
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094