BILL ANALYSIS �
ACA 23
Page 1
Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
ACA 23 (Perea) - As Introduced: February 23, 2012
Policy Committee: Local
GovernmentVote:6-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill provides that the imposition, extension or increase of
a special tax by a local government for the purpose of providing
funding for local transportation projects requires the approval
of at least 55% of its voters voting on the proposition, rather
than the two-thirds currently required. Specifically, this
bill:
1)Provides that the imposition, extension, or increase of a
special tax by a local government for the purpose of providing
funding for local transportation projects under its
jurisdiction requires the approval of at least 55% of the
voters voting on the proposition.
2)States that the Legislature shall define local transportation
projects for purposes of the bill's provisions.
FISCAL EFFECT
One-time GF costs of about $220,000 to include an analysis of
this measure, and arguments for and against the measure, in the
state voter pamphlet.
COMMENTS
1)Purpose . According to the author, California's infrastructure
funding mechanisms are falling significantly short of meeting
even the costs of current system maintenance. The author
states 35% of major urban roads in California are in poor
condition and seven cities in California with populations
greater than 250,000 have roadway systems where more than 50%
ACA 23
Page 2
of pavements are considered to be in poor condition. The
author argues ACA 23 would provide local government and
residents with the ability to make vital investments in local
transportation projects while providing economic stimulus to
their region. The author notes local governments face the
daunting task of obtaining a two-thirds approval of voters and
despite having the support of a strong majority of the
community, these measures are at the mercy of a small minority
of the voters and often fail by narrow margins.
2)Support. The bill is sponsored by the Kern Council of
Governments because this bill will offer a fair and equitable
solution to the ongoing revenue concerns California faces in
attempting to solve its transportation infrastructure
problems. Supporters argue that the two-thirds threshold for
approving special taxes allows a small minority of voters to
control transportation investment decisions and contributes
the difficulty in funding crucial projects and this bill will
remedy that problem.
3)Background . Article XIII A of the California Constitution
allows cities, counties, and special districts, by a
two-thirds vote of the qualified electors in that
jurisdiction, to impose special taxes, except ad valorem taxes
on real property or a transaction tax or sales tax on the sale
of real property within that city, county or special district
4)Opposition . Opponents, including the California Taxpayers
Association, note that a two-thirds vote on special taxes
ensures if a local government is to propose an earmark at the
ballot, then a greater consensus must be sought to determine a
local government's budgeting priorities. They note that the
theory behind sound budgeting principles is the reason a
majority of the local electorate is require to increase a
general tax and a two -thirds vote is necessary to approve a
special tax.
5)Previous legislation.
a) ACA 9 (Huffman) of 2009 created an exception to the 1%
property tax limit for a rate imposed by a local government
to service bond-debt for specified public improvements
approved by 55% of the voters of the local government. ACA
9 was held on the Assembly floor.
ACA 23
Page 3
b) ACA 10 (Feuer), 2008, created an exception to the 1% ad
valorem property tax to service debt for transportation
general obligation bonds approved by 55% voter approval.
This bill was not heard in policy committee.
c) ACA 7 (Nation) from the 2005-06 legislative session
lowered the constitutional vote requirement to 55% for any
special tax. This bill was held on this committee's
suspense file.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081