Bill Text: CA SCAX11 | 2011-2012 | Regular Session | Amended
Bill Title: The Schools and Local Public Safety Protection Act of
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-09-10 - From committee without further action. [SCAX11 Detail]
Download: California-2011-SCAX11-Amended.html
BILL NUMBER: SCAX1 1 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 17, 2011
INTRODUCED BY Senator Steinberg
MARCH 14, 2011
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by adding Section 36
to Article XIII thereof, relating to local government finance.
LEGISLATIVE COUNSEL'S DIGEST
SCA 1, as amended, Steinberg. The Schools and Local Public Safety
Protection Act of 2011.
(1) Existing law, until July 1, 2011, imposes a state sales and
use tax on retailers and on the storage, use, or other consumption of
tangible personal property in this state at the rate of 71/4% of the
gross receipts from the retail sale of tangible personal property in
this state and of the sales price of tangible personal property
purchased from any retailer for storage, use, or other consumption in
this state. Existing law reduces the state sales and use tax rate by
1% on July 1, 2011.
The Vehicle License Fee Law establishes, until July 1, 2011, in
lieu of any ad valorem property tax upon vehicles, an annual license
fee for any vehicle subject to registration in this state in the
amount of 1.15% of the market value of that vehicle, as provided.
Existing law, on and after July 1, 2011, reduces that rate to 0.65%.
This measure would extend the existing sales and use tax rate and
vehicle license fees until July 1, 2016, and would deposit the
revenues derived from the increase in those taxes into the Local
Revenue Fund 2011, established by this measure, to be appropriated by
the Legislature to fund the provision of public safety services, as
described, by local agencies pursuant to the 2011 Realignment
Legislation, as defined. This measure would also provide that the
assignment of responsibilities to local agencies under the 2011
Realignment Legislation shall not be reimbursable as a new program or
higher level of service, but would require reimbursement to local
agencies resulting from subsequent state actions under certain
circumstances. This measure would further state that local agency
costs increased in complying with statutory open meeting requirements
shall not be deemed a reimbursable state mandate.
This measure would additionally provide, when the rates in the
above-described taxes cease to be operative, for the appropriation of
state funds in an equivalent amount to fund the provision of Public
Safety Services.
(2) The Personal Income Tax Law imposes taxes based upon taxable
income. That law also allows credits for personal exemptions, and
imposes an alternative minimum tax, as specified. Existing law, for
taxable years beginning on or after January 1, 2009, and before
January 1, 2011, decreased the amount allowable as a credit for
personal exemption for dependents, increased the tax rate applicable
to taxable income, and increased the alternative minimum tax rate, as
provided.
This measure would continue the decrease in the amount allowable
as a credit for personal exemption for dependents, the increase in
the tax rate applicable to taxable income, and the increase in the
alternative minimum tax rate for taxable years beginning before
January 1, 2016. This bill would require the Controller to deposit
6.5% of the net personal income tax receipts, as defined, into the
Education Protection Account, established by this measure. Funds in
the account would be appropriated by the Legislature for the support
of school districts and community college districts, and would apply
to the state's constitutional minimum funding obligation under
Proposition 98.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2011-12 First
Extraordinary Session commencing on the sixth day of December 2010,
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-- This measure shall be known and may be cited as "The
Schools and Local Public Safety Protection Act of 2011."
Second-- Purpose and Intent:
(a) The chief purpose of this measure is to protect schools and
local public safety by keeping certain 2010 taxes. These taxes shall
be placed in dedicated special funds and constitutionally required to
be used exclusively for schools and local public safety.
(b) This measure is part of a broader state budget plan that makes
billions of dollars in permanent cuts to State spending.
(c) The measure guarantees solid, reliable funding for schools,
community colleges, and public safety.
(d) This measure keeps sales and use taxes, vehicle license fees,
and income taxes at the same rates that were in effect in 2010, and
requires that these tax rates automatically drop to 2008 levels in
five years.
(e) This measure also promotes transparency and supports improved
outcomes in the delivery of public safety services.
(f) All revenues from this measure are subject to audit by the
independent Controller to ensure that they will be used only for
schools and local public safety.
(g) This measure guarantees that local governments will continue
to receive funding for public safety services even after the tax
rates drop to their 2008 levels.
Third-- That Section 36 is added to Article XIII thereof, to read:
SEC. 36. (a) For purposes of this section:
(1) "Public Safety Services" includes the following:
(A) Employing and training public safety officials, including law
enforcement personnel, attorneys assigned to criminal proceedings,
and court security staff.
(B) Managing local jails and providing housing, treatment, and
services for, and supervision of, juvenile and adult offenders.
(C) Providing fire protection and support services.
(D) Preventing child abuse, neglect, or exploitation; providing
services to children who are abused, neglected, or exploited, or who
are at risk of abuse, neglect, or exploitation, and the families of
those children; providing adoption services, providing transitional
housing and other services to emancipated youth, and providing adult
protective services.
(E) Providing community mental health services
and mental health services and institutional placements
to children and adults to reduce failure in school, harm to
themselves and self or others,
homelessness, and preventable incarceration or
institutionalization .
(F) Preventing, treating, and providing recovery services for
substance abuse.
(2) "2011 Realignment Legislation" means legislation enacted on or
before October 9, 2011, to implement the state budget plan, that is
entitled 2011 Realignment and provides for the assignment of Public
Safety Services responsibilities to local agencies, including related
reporting responsibilities. The legislation shall provide local
agencies with maximum flexibility and control over the design,
administration, and delivery of Public Safety Services consistent
with federal law and funding requirements, as determined by the
Legislature.
(b) (1) The sales tax described in subdivision (a) of Section
6051.7 of the Revenue and Taxation Code, as that section read on
January 1, 2011, shall continue in operation on and after July 1,
2011, and shall cease to be operative on July 1, 2016.
(2) The use tax described in subdivision (a) of Section 6201.7 of
the Revenue and Taxation Code, as that section read on January 1,
2011, shall continue in operation on and after July 1, 2011, and
shall cease to be operative on July 1, 2016.
(3) The Sales and Use Tax Law, including any amendments enacted on
or after the effective date of this section, shall apply to the
taxes imposed pursuant to this subdivision.
(4) The continuation of the sales and use taxes described in this
subdivision maintains and does not increase the 2010 sales and use
tax rates.
(c) (1) (A) (i) The amount of the license fee described in
paragraph (2) of subdivision (a) of Section 10752 of the Revenue and
Taxation Code, as amended by Section 4 of Chapter 18 of the Third
Extraordinary Session of the Statutes of 2009, shall continue in
operation on and after July 1, 2011, and shall cease to be operative
on July 1, 2016.
(ii) Section 10752 of the Revenue and Taxation Code, as added by
Section 5 of Chapter 18 of the Third Extraordinary Session of the
Statutes of 2009, shall not become operative until July 1, 2016.
(B) (i) The amount of the license fee described in paragraph (2)
of subdivision (a) of Section 10752.1 of the Revenue and Taxation
Code, as amended by Section 6 of Chapter 18 of the Third
Extraordinary Session of the Statutes of 2009, shall continue in
operation on and after July 1, 2011, and shall cease to be operative
on July 1, 2016.
(ii) Section 10752.1 of the Revenue and Taxation Code, as added by
Section 7 of Chapter 18 of the Third Extraordinary Session of the
Statutes of 2009, shall not become operative until July 1, 2016.
(C) The amount of the license fee described in subdivision (a) of
Section 10752.2 of the Revenue and Taxation Code, as that section
read on January 1, 2011, shall continue in operation on and after
July 1, 2011, and shall cease to be operative on July 1, 2016.
(2) The Vehicle License Fee Law, including any amendments enacted
on or after the effective date of this section, shall apply to the
fees imposed pursuant to this subdivision.
(3) The continuation of the vehicle license fee described in this
subdivision maintains and does not increase the 2010 vehicle license
fee.
(d) (1) All revenues derived from the continuation of the taxes
described in subdivisions (b) and (c), less refunds and costs of tax
and license fee collection and deposit, shall be deposited into the
Local Revenue Fund 2011, which is hereby created in the State
Treasury.
(2) Funds deposited in the Local Revenue Fund 2011, less costs of
administering the fund, shall be continuously appropriated by the
Legislature exclusively to fund the provision of Public Safety
Services by local agencies. Pending full implementation of the 2011
Realignment Legislation, funds may also be used to reimburse the
State for costs incurred in providing Public Safety Services on
behalf of local agencies. The methodology for allocating funds to
local agencies and reimbursing state costs shall be specified in the
2011 Realignment Legislation.
(3) The county treasurer, city and county treasurer, or other
appropriate official shall create a County Local Revenue Fund 2011
within the treasury of each county or city and county. The money in
each County Local Revenue Fund 2011 shall be exclusively used to fund
the provision of Public Safety Services by local agencies as
specified by the 2011 Realignment Legislation.
(4) Notwithstanding Section 6 of Article XIII B, or any other
constitutional provision, a mandate of a new program or higher level
of service on a local agency imposed by the 2011 Realignment
Legislation, or by any regulation adopted or any executive order or
administrative directive issued to implement that legislation, shall
not constitute a mandate requiring the State to provide a subvention
of funds within the meaning of subdivision (b) of that section. Any
requirement that a local agency comply with Chapter 9 (commencing
with Section 54950) of Part 1 of Division 2 of Title 5 of the
Government Code, with respect to performing its Public Safety
Services responsibilities, or any other matter, shall not be a
reimbursable mandate under Section 6 of Article XIII B.
(5) (A) Legislation enacted after October 9, 2011, that has an
overall effect of increasing the costs already borne by a local
agency for programs or levels of service mandated by the 2011
Realignment Legislation shall apply to local agencies only to the
extent that the State provides annual funding for the cost increase.
Local agencies shall not be obligated to provide programs or levels
of service required by legislation, described in this subparagraph,
above the level for which funding has been provided.
(B) Regulations, executive orders, or administrative directives,
implemented after October 9, 2011, that are not necessary to
implement the 2011 Realignment Legislation, and that have an overall
effect of increasing the costs already borne by a local agency for
programs or levels of service mandated by the 2011 Realignment
Legislation, shall apply to local agencies only to the extent that
the State provides annual funding for the cost increase. Local
agencies shall not be obligated to provide programs or levels of
service pursuant to new regulations, executive orders, or
administrative directives, described in this subparagraph, above the
level for which funding has been provided.
(C) Any new program or higher level of service provided by local
agencies, as described in subparagraphs (A) and (B), in excess of the
provided fundings, shall not require a subvention of funds by the
State nor otherwise be subject to Section 6 of Article XIII B. This
paragraph shall not apply to legislation currently exempt from
subvention under paragraph (2) of subdivision (a) of Section 6 of
Article XIII B.
(D) The State shall not submit to the federal government any plans
or waivers, or amendments to those plans or waivers, that have an
overall effect of increasing the cost borne by a local agency for
programs or levels of service mandated by the 2011 Realignment
Legislation, except to the extent that the plans, waivers, or
amendments are required by federal law, or the State provides annual
funding for the cost increase.
(E) The State shall not be required to provide a subvention of
funds pursuant to this paragraph for a mandate that is imposed by the
State at the request of a local agency or to comply with federal
law. State funds required by this paragraph shall be from a source
other than those described in subdivisions (b), (c), and (e), ad
valorem property taxes, or the Social Services Subaccount of the
Sales Tax Account of the Local Revenue Fund.
(6) (A) For programs described in subparagraphs (D) to (F),
inclusive, of paragraph (1) of subdivision (a) and included in the
2011 Realignment Legislation, if there are subsequent changes in
federal statutes or regulations that alter the conditions under which
federal matching funds as described in the 2011 Realignment
Legislation are obtained, and have the overall effect of increasing
the costs incurred by a local agency, the State shall annually
provide at least 50 percent of the nonfederal share of those costs as
determined by the State.
(B) When the State is a party to any complaint brought in a
federal judicial or administrative proceeding that involves one or
more of the programs described in subparagraphs (D) to (F),
inclusive, of paragraph (1) of subdivision (a) and included in the
2011 Realignment Legislation, and there is a settlement or judicial
or administrative order that imposes a cost in the form of a monetary
penalty or has the overall effect of increasing the costs already
borne by a local agency for programs or levels of service mandated by
the 2011 Realignment Legislation, the State shall annually provide
at least 50 percent of the nonfederal share of those costs as
determined by the State. Payment by the State is not required if the
State determines that the settlement or order relates to one or more
local agencies failing to perform a ministerial duty, failing to
perform a legal obligation in good faith, or acting in a negligent or
reckless manner.
(C) The state funds provided in this paragraph shall be from
funding sources other than those described in subdivisions (b), (c),
and (e), ad valorem property taxes, or the Social Services Subaccount
of the Sales Tax Account of the Local Revenue Fund.
(7) If the State or a local agency fails to perform a duty or
obligation under this section or under the 2011 Realignment
Legislation, an appropriate party may seek judicial relief. These
proceedings shall have priority over all other civil matters.
(8) The funds deposited into a County Local Revenue Fund 2011
shall be spent in a manner designed to maintain the State's
eligibility for federal matching funds, and to ensure compliance by
the State with applicable federal standards governing the State's
provision of Public Safety Services.
(9) The funds deposited into a County Local Revenue Fund 2011
shall not be used by local agencies to supplant other funding for
Public Safety Services.
(10) This section shall not be construed to prevent the
Legislature from subsequently imposing a fee or tax enacted in
accordance with this Constitution.
(e) When the taxes described in subdivisions (b) and (c) cease to
be operative, the State shall annually provide moneys to the Local
Revenue Fund 2011 in an amount equal to or greater than the aggregate
amount that otherwise would have been provided by the taxes
described in subdivisions (b) and (c). The method for determining
that amount shall be described in the 2011 Realignment Legislation,
and the State shall be obligated to provide that amount for so long
as the local agencies are required to perform the Public Safety
Services responsibilities assigned by the 2011 Realignment
Legislation. If the State fails to annually appropriate that amount,
the Controller shall transfer that amount from the General Fund in
pro rata monthly shares to the Local Revenue Fund 2011. Thereafter,
the Controller shall disburse these amounts to local agencies in the
manner directed by the 2011 Realignment Legislation. The state
obligations under this subdivision shall have a lower priority claim
to General Fund money than the first priority for money to be set
apart under Section 8 of Article XVI and the second priority to pay
voter-approved debts and liabilities described in Section 1 of
Article XVI.
(f) (1) The tax percentage increase described in paragraph (2) of
subdivision (a) and paragraph (2) of subdivision (c) of Section 17041
of the Revenue and Taxation Code, as that section read on January 1,
2011, shall continue in operation for taxable years beginning on or
after January 1, 2011, and shall cease to be operative for taxable
years beginning on or after January 1, 2016.
(2) The amount of credit allowed by subparagraph (A) of paragraph
(3) of subdivision (d) of Section 17054 of the Revenue and Taxation
Code, as that section read on January 1, 2011, shall continue in
operation for taxable years beginning on or after January 1, 2011,
and shall cease to be operative for taxable years beginning on or
after January 1, 2016.
(3) (A) The tax percentage described in clause (iii) of
subparagraph (A) of paragraph (3) of subdivision (b) of Section 17062
of the Revenue and Taxation Code, as that section read on January 1,
2011, shall continue in operation for taxable years beginning on or
after January 1, 2011, and shall cease to be operative for taxable
years beginning on or after January 1, 2016.
(B) Clause (iv) of subparagraph (A) of paragraph (3) of
subdivision (b) of Section 17062 of the Revenue and Taxation Code, as
that section read on January 1, 2011, shall be operative only for
taxable years beginning on or after January 1, 2016.
(4) The continuation of the tax rates and credit amounts allowed
pursuant to this subdivision maintains and does not increase the 2010
personal income tax rate.
(5) For taxable years beginning before January 1, 2012, an
addition to tax shall not be imposed under Section 19136 of the
Revenue and Taxation Code, as that section read on January 1, 2011,
with respect to an underpayment to the extent that the underpayment
was created or increased by this subdivision.
(g) (1) Beginning July 1, 2011, and ending July 1, 2016, the
Controller shall deposit 6.5 percent of monthly net personal income
tax receipts, within the meaning of Section 19602.5 of the Revenue
and Taxation Code, as that section read on January 1, 2011, into the
Education Protection Account, which is hereby created in the State
Treasury. Notwithstanding any other provision of this Constitution,
these moneys shall be deemed "General Fund revenues" and "General
Fund proceeds of taxes" for the purposes of Section 8 of Article XVI.
The deposit of 6.5 percent of monthly net personal income tax
receipts is intended to approximate the total amount of additional
revenue that is expected to be received from the continuation of tax
rates and credit amounts allowed pursuant to subdivision (f).
(2) All funds in the Education Protection Account shall be
appropriated by the Legislature by statute each year for the support
of school districts and community college districts. These
appropriations shall be deemed moneys applied by the State for the
support of those entities for purposes of Section 8 of Article XVI.
(h) The Controller, pursuant to his or her statutory authority,
may perform audits of expenditures from the Local Revenue Fund 2011,
any County Local Revenue Fund 2011, and the Education Protection
Account to ensure that those funds are used and accounted for in a
manner consistent with this section.
Fourth-- This measure shall take effect the day after the election
in which it is approved by a majority of the voters voting on the
measure and shall be operative as provided by Section 36 of Article
XIII of the California Constitution.
