Bill Text: CA ACA8 | 2015-2016 | Regular Session | Introduced
Bill Title: Local government financing: water facilities and infrastructure: voter approval.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [ACA8 Detail]
Download: California-2015-ACA8-Introduced.html
BILL NUMBER: ACA 8 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bloom
FEBRUARY 18, 2016
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Sections 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 water facilities and infrastructure.
LEGISLATIVE COUNSEL'S DIGEST
ACA 8, as introduced, Bloom. Local government financing: water
facilities and infrastructure: 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 the
construction, reconstruction, rehabilitation, or replacement of
wastewater treatment facilities and related infrastructure, potable
water producing facilities and related infrastructure, nonpotable
water producing facilities and related infrastructure, and stormwater
treatment facilities and related infrastructure, that is approved by
55% of the voters of the city, county, city and county, or special
district, as applicable, if the proposition meets specified
requirements, and would authorize a city, county, city and county, or
special district to levy a 55% vote ad valorem tax.
(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 instead condition the imposition, extension, or
increase of a special tax by a city, county, city and county, or
special district for the purpose of funding wastewater, stormwater,
and water treatment, supply and delivery facilities and
infrastructure, upon the approval of 55% of its voters voting on the
proposition, if the proposition meets specified requirements. This
measure 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 the construction, reconstruction, rehabilitation, or
replacement of wastewater treatment facilities and related
infrastructure, potable water producing facilities and related
infrastructure, nonpotable water producing facilities and related
infrastructure, and stormwater treatment facilities and related
infrastructure.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2015-16 Regular Session
commencing on the first day of December 2014, 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 to fund
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 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) (A) Bonded indebtedness, approved by 55 percent of the voters
of the city, county, city and county, or special district, as
appropriate, voting on the proposition on or after the effective date
of the measure adding this paragraph, incurred by a city, county,
city and county, or special district to fund the construction,
reconstruction, rehabilitation, or replacement of wastewater
treatment facilities and related infrastructure, potable water
producing facilities and related infrastructure, nonpotable water
producing facilities and related infrastructure, and stormwater
treatment facilities and related infrastructure. 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:
(i) A requirement that the proceeds from the sale of the bonds be
used only for the purposes specified in this paragraph and not for
any other purpose.
(ii) A list of any and all specific facilities and projects to be
funded.
(iii) A requirement that the governing board of the city, county,
city and county, or special district conduct an annual independent
performance audit to ensure that the funds have been expended only on
the specific projects listed.
(iv) A requirement that the governing board of the city, county,
city and county, or special district 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 projects identified.
(B) For purposes of this paragraph, "special district" has the
same meaning as that term is used in subdivision (c) of Section 1 of
Article XIII C, excluding a school district and redevelopment agency.
(c) Notwithstanding any other provisions of law or of this
Constitution, school districts, community college districts, and
county offices of education may levy a 55 percent vote ad valorem tax
pursuant to paragraph (3) of subdivision (b).
(d) Notwithstanding any other provisions of law or of this
Constitution, a city, county, city and county, or special district
may levy a 55 percent vote ad valorem tax pursuant to paragraph (4)
of 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 wi thin 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. (a) 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
wastewater, stormwater, and water treatment, supply and delivery
facilities and infrastructure projects, 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, if all of
the following conditions are met:
(1) The proposition is approved by a majority vote of the
membership of the governing board of a city, county, city and county,
or special district.
(2) The proposition contains all of the following accountability
requirements:
(A) A list of the specific projects that are to be funded.
(B) A requirement that the proceeds be used only for the projects
specified in the proposition, and not for any other purpose.
(C) To ensure compliance with subparagraph (B), a requirement that
the governing board of a city, county, city and county, or special
district conduct an annual, independent financial audit of the amount
of special tax proceeds collected and expended, and the specified
projects funded.
(D) To ensure compliance with subparagraph (B), a requirement that
the governing board of a city, county, city and county, or special
district establish a citizens' oversight committee to review all
expenditures of proceeds and financial audits, and report its
findings to the governing board and to the public.
(b) For purposes of this section, "wastewater, stormwater, and
water treatment, storage, supply, and delivery facilities and
infrastructure projects" include, but are not limited to, projects
that promote any of the following:
(1) Water reuse and recycling for nonpotable reuse and direct and
indirect potable reuse.
(2) Local and regional surface and underground water storage,
including groundwater aquifer cleanup or recharge projects.
(3) Regional water conveyance facilities that improve integration
of separate water systems.
(4) Watershed protection, restoration, and management projects,
including projects that reduce the risk of wildfire or improve water
supply reliability.
(5) Stormwater resource management, including, but not limited to,
the following:
(A) Projects to reduce, manage, treat, or capture rainwater or
stormwater.
(B) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.
(6) Conjunctive use of surface and groundwater storage facilities.
(7) Water desalination.
(8) Improvement of water quality, including drinking water
treatment and distribution, groundwater and aquifer remediation,
matching water quality to water use, wastewater treatment, water
pollution prevention, and management of urban and agricultural
runoff.
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. Special purpose
districts tax. A special district or
agencies, agency including a school
districts, shall have no power district, has
no 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 subdivision
(c) or (d) of Section 1 of, or 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 subdivision (c) or (d) of Section 1 of, or Section 4.5,
of Article XIII A .
(3) Assessments as provided by this article.
(4) Fees or charges for property related
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 A county, city,
town, township, board of education, or school district,
district shall not 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
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 maturity
that shall not exceed forty 40
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 the construction, reconstruction,
rehabilitation, or replacement of wastewater treatment facilities and
related infrastructure, potable water producing facilities and
related infrastructure, nonpotable water producing facilities and
related infrastructure, and stormwater treatment facilities and
related infrastructure.
(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 or a majority 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.
