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HomeMy WebLinkAboutMINUTES - 03192013 - C.33RECOMMENDATION(S): ADOPT a "Support" position on ACA 3 (Campos)--Local Government Finance: Public Safety Services, a measure that authorizes the imposition, extension, or increase of a special tax for funding fire, emergency response, police, or sheriff services, upon the approval of 55% of the voters voting, as recommended by the Legislation Committee. FISCAL IMPACT: No fiscal impact to the County's General Fund. BACKGROUND: At its February 25, 2013 meeting, the Legislation Committee considered ACA 3 (Campos)--Local Government Finance: Public Safety Services, and voted to recommend a position of "Support" to the Board of Supervisors. ACA 3, by Assembly Member Nora Campos, would allow local voters of counties, cities, and special districts to increase property tax rates with a 55 percent vote to pay debt incurred to fund fire, sheriff, police, or emergency response facilities and equipment. The measure would also allow local voters to fund supplemental public safety services by passing a special tax with 55 percent approval. (See Attachment A for the text of the bill.) One of this year’s major debates in the Legislature will center on how the Democrats will use their supermajority in both houses. One likely candidate is placing constitutional amendments on the ballot. ACA 3 is one of several measures already introduced that would ask voters whether they want to make it easier for communities to raise local taxes by reducing vote thresholds from two-thirds to 55 percent. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/19/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Contact: L. DeLaney, 925-335-1097 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: March 19, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.33 To:Board of Supervisors From:Legislation Committee Date:March 19, 2013 Contra Costa County Subject:Support Position for ACA 3 (Campos--Local Government Finance: Public Safety Services BACKGROUND: (CONT'D) STATUS: 01/22/2013 INTRODUCED CONSEQUENCE OF NEGATIVE ACTION: The County will not have an official position on this measure from which to advocate. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS Attachment A--ACA 3 Bill Text california legislature—2013–14 regular session Assembly Constitutional Amendment No. 3 Introduced by Assembly Member Campos January 22, 2013 Assembly Constitutional Amendment No. 3—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 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 local government finance. legislative counsel’s digest ACA 3, as introduced, Campos. Local government financing: public safety services: voter approval. (1)  The California Constitution prohibits the general 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, or special district to service bonded indebtedness incurred to fund certain fire, emergency response, police, or sheriff buildings or facilities, and equipment, that is approved by 55% of the voters of the city, county, or special district, as applicable. (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 authorize the imposition, extension, or increase of a special tax by a city, county, or special district for the purpose of Corrected 1-23-13—See last page.99 providing supplemental funding fire, emergency response, police, or sheriff services, upon the approval of 55% of the voters voting on the proposition, and would prohibit the revenues derived from such a tax from being expended to supplant any other funding source for the provision of these services. 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 or 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 certain fire, emergency response, police, or sheriff buildings or facilities, and equipment. Vote: 2⁄3. Appropriation: no. Fiscal committee: no. State-mandated local program: no. line 1 Resolved by the Assembly, the Senate concurring, That the line 2 Legislature of the State of California at its 2013–14 Regular line 3 Session commencing on the third day of December 2012, line 4 two-thirds of the membership of each house concurring, hereby line 5 proposes to the people of the State of California, that the line 6 Constitution of the State be amended as follows: line 7 First—That Section 1 of Article XIII A thereof is amended to line 8 read: line 9 SECTION 1. (a)  The maximum amount of any ad valorem line 10 tax on real property shall not exceed One 1 percent (1%) of the line 11 full cash value of such that property. The one 1 percent (1%) tax line 12 to shall be collected by the counties and apportioned according to line 13 law to the districts within the counties. 99 — 2 —ACA 3 line 1 (b)  The limitation provided for in subdivision (a) shall not apply line 2 to ad valorem taxes or special assessments to pay the interest and line 3 redemption charges on any of the following: line 4 (1)  Indebtedness approved by the voters prior to July 1, 1978. line 5 (2)  Bonded indebtedness for the acquisition or improvement of line 6 real property approved on or after July 1, 1978, by two-thirds of line 7 the votes cast by the voters voting on the proposition. line 8 (3)  Bonded indebtedness incurred by a school district, line 9 community college district, or county office of education for to line 10 fund the construction, reconstruction, rehabilitation, or replacement line 11 of school facilities, including the furnishing and equipping of line 12 school facilities, or the acquisition or lease of real property for line 13 school facilities, approved by 55 percent of the voters of the district line 14 or county, as appropriate, voting on the proposition on or after the line 15 effective date of the measure adding this paragraph November 8, line 16 2000. This paragraph shall apply only if the proposition approved line 17 by the voters and resulting in the bonded indebtedness includes line 18 all of the following accountability requirements: line 19 (A)  A requirement that the proceeds from the sale of the bonds line 20 be used only for the purposes specified in Article XIII A, Section line 21 1(b)(3), this paragraph and not for any other purpose, including line 22 teacher and administrator salaries and other school operating line 23 expenses. line 24 (B)  A list of the specific school facilities projects to be funded line 25 and certification that the school district board, community college line 26 board, or county office of education has evaluated safety, class line 27 size reduction, and information technology needs in developing line 28 that list. line 29 (C)  A requirement that the school district board, community line 30 college board, or county office of education conduct an annual, line 31 independent performance audit to ensure that the funds have been line 32 expended only on the specific projects listed. line 33 (D)  A requirement that the school district board, community line 34 college board, or county office of education conduct an annual, line 35 independent financial audit of the proceeds from the sale of the line 36 bonds until all of those proceeds have been expended for the school line 37 facilities projects. line 38 (4)  Bonded indebtedness, approved by 55 percent of the voters line 39 of a city, county, or special district, as applicable, voting on the line 40 proposition on or after the effective date of the measure adding 99 ACA 3— 3 — line 1 this paragraph, incurred by the city, county, or special district to line 2 fund any or all of the following: line 3 (A)  The construction, reconstruction, rehabilitation, or line 4 replacement of buildings or facilities for direct and exclusive use line 5 by fire, emergency response, police, or sheriff personnel employed line 6 by the city, county, or special district to provide fire, emergency line 7 response, police, or sheriff services to the public; or to fund the line 8 acquisition or lease of real property for those buildings or line 9 facilities. line 10 (B)  The purchase, lease, rent, maintenance, or repair of fire line 11 suppression or emergency response equipment or of interoperable line 12 communications equipment for direct and exclusive use by fire or line 13 emergency response personnel employed by the city, county, or line 14 special district. line 15 (C)  The purchase, lease, rent, maintenance, or repair of line 16 interoperable communications equipment for direct and exclusive line 17 use by police or sheriff personnel employed by the city, county, or line 18 special district. line 19 (c)  Notwithstanding any other provisions of law or of this line 20 Constitution, a school districts, community college districts, and line 21 county offices of education district, community college district, line 22 county office of education, city, county, or special district may line 23 levy a 55 percent vote ad valorem tax pursuant to subdivision (b). line 24 Second—That Section 4 of Article XIII A thereof is amended line 25 to read: line 26 Section 4. Cities, Counties and special districts, Except as line 27 otherwise provided by Section 2 of Article XIII C, a city, county, line 28 or special district, by a two-thirds vote of the qualified electors of line 29 such district its voters voting on the proposition , may impose line 30 special taxes on such district a special tax within that city, county, line 31 or special district, except an ad valorem taxes tax on real property line 32 or a transaction transactions tax or sales tax on the sale of real line 33 property within such City, County that city, county, or special line 34 district. line 35 Third—That Section 2 of Article XIII C thereof is amended to line 36 read: line 37 SEC. 2. Local Government Tax Limitation.   Notwithstanding line 38 any other provision of this Constitution: line 39 (a)  All taxes Any tax imposed by any local government shall be line 40 deemed to be is either a general taxes tax or a special taxes tax. 99 — 4 —ACA 3 line 1 Special purpose districts A special district or agencies agency , line 2 including a school districts district , shall have has no power line 3 authority to levy a general taxes tax. line 4 (b)  No A local government may shall not impose, extend, or line 5 increase any general tax unless and until that tax is submitted to line 6 the electorate and approved by a majority vote. A general tax shall line 7 is not be deemed to have been increased if it is imposed at a rate line 8 not higher than the maximum rate so approved. The election line 9 required by this subdivision shall be consolidated with a regularly line 10 scheduled general election for members of the governing body of line 11 the local government, except in cases of emergency declared by line 12 a unanimous vote of the governing body. line 13 (c)  Any general tax imposed, extended, or increased, without line 14 voter approval, by any local government on or after January 1, line 15 1995, and prior to the effective date of this article, shall continue line 16 to be imposed only if that general tax is approved by a majority line 17 vote of the voters voting in an election on the issue of the line 18 imposition, which election shall be held within two years of the line 19 effective date of this article no later than November 6, 1998, and line 20 in compliance with subdivision (b). line 21 (d)  No (1)  Except as otherwise provided in paragraph (2), a line 22 local government may shall not impose, extend, or increase any line 23 special tax unless and until that tax is submitted to the electorate line 24 and approved by a two-thirds vote of the voters voting on the line 25 proposition . A special tax shall is not be deemed to have been line 26 increased if it is imposed at a rate not higher than the maximum line 27 rate so approved. line 28 (2)  The imposition, extension, or increase of a special tax by a line 29 local government, as may otherwise be authorized by law, for the line 30 purpose of providing supplemental funding for fire, emergency line 31 response, police, or sheriff services, requires the approval of 55 line 32 percent of the voters voting on the proposition. A special tax for line 33 the purpose of providing funding for fire, emergency response, line 34 police, or sheriff services is not deemed to have been increased if line 35 it is imposed at a rate not higher than the maximum rate previously line 36 approved in the manner required by law. The revenues derived line 37 from the imposition, extension, or increase of a special tax pursuant line 38 to this paragraph shall not be expended to supplant any other line 39 funding source for fire, emergency response, police, or sheriff line 40 services. 99 ACA 3— 5 — line 1 Fourth—That Section 3 of Article XIII D thereof is amended line 2 to read: line 3 SEC. 3. Property Taxes, Assessments, Fees and Charges line 4 Limited. (a)  No An agency shall not assess a tax, assessment, fee, line 5 or charge shall be assessed by any agency upon any parcel of line 6 property or upon any person as an incident of property ownership line 7 except: line 8 (1)  The ad valorem property tax imposed pursuant to Article line 9 XIII and Article XIII A. line 10 (2)  Any special tax receiving a two-thirds vote pursuant to line 11 Section 4 of Article XIII A and paragraph (1) of subdivision (d) line 12 of Section 2 of Article XIII C or, as applicable, a 55-percent vote line 13 pursuant to paragraph (2) of subdivision (d) of Section 2 of Article line 14 XIII C. line 15 (3)  Assessments as provided by this article. line 16 (4)  Fees or charges for property related property-related services line 17 as provided by this article. line 18 (b)  For purposes of this article, fees for the provision of electrical line 19 or gas service shall are not be deemed charges or fees imposed as line 20 an incident of property ownership. line 21 Fifth—That Section 18 of Article XVI thereof is amended to line 22 read: line 23 SEC. 18. (a)  No A county, city, town, township, board of line 24 education, or school district, shall not incur any indebtedness or line 25 liability in any manner or for any purpose exceeding in any year line 26 the income and revenue provided for such that year, without the line 27 assent of two-thirds of the voters of the public entity voting at an line 28 election to be held for that purpose, except that with respect to any line 29 such public entity which that is authorized to incur indebtedness line 30 for public school purposes, any proposition for the incurrence of line 31 indebtedness in the form of general obligation bonds for the line 32 purpose of repairing, reconstructing , or replacing public school line 33 buildings determined, in the manner prescribed by law, to be line 34 structurally unsafe for school use, shall be adopted upon the line 35 approval of a majority of the voters of the public entity voting on line 36 the proposition at such that election; nor unless before or at the line 37 time of incurring such the indebtedness, provision shall be made line 38 for the collection of an annual tax sufficient to pay the interest on line 39 such that indebtedness as it falls due, and to provide for a sinking line 40 fund for the payment of the principal thereof, on or before maturity, 99 — 6 —ACA 3 line 1 which that shall not exceed forty years from the time of contracting line 2 the indebtedness. line 3 (b)  Notwithstanding subdivision (a), on or after the effective line 4 date of the measure adding this subdivision, November 8, 2000, line 5 in the case of any school district, community college district, or line 6 county office of education, any proposition for the incurrence of line 7 indebtedness in the form of general obligation bonds for the line 8 construction, reconstruction, rehabilitation, or replacement of line 9 school facilities, including the furnishing and equipping of school line 10 facilities, or the acquisition or lease of real property for school line 11 facilities, shall be adopted upon the approval of 55 percent of the line 12 voters of the district or county, as appropriate, voting on the line 13 proposition at an election. This subdivision shall apply only to a line 14 proposition for the incurrence of indebtedness in the form of line 15 general obligation bonds for the purposes specified in this line 16 subdivision if the proposition meets all of the accountability line 17 requirements of paragraph (3) of subdivision (b) of Section 1 of line 18 Article XIII A. line 19 (c)  Notwithstanding subdivision (a), on or after the effective line 20 date of the measure adding this subdivision, in the case of any city line 21 or county, any proposition to incur indebtedness in the form of line 22 general obligation bonds shall be adopted by 55 percent of the line 23 voters of the city or county, as applicable, voting on the proposition line 24 at an election, if the general obligation bonds would fund any or line 25 all of the following: line 26 (1)  The construction, reconstruction, rehabilitation, or line 27 replacement of buildings or facilities for direct and exclusive use line 28 by fire, emergency response, police, or sheriff personnel employed line 29 by the city or county to provide fire, emergency response, police, line 30 or sheriff services to the public, or to fund the acquisition or lease line 31 of real property for those buildings or facilities. line 32 (2)  The purchase, lease, rent, maintenance, or repair of fire line 33 suppression or emergency response equipment or of interoperable line 34 communications equipment for direct and exclusive use by fire or line 35 emergency response personnel employed by the city or county. line 36 (3)  The purchase, lease, rent, maintenance, or repair of line 37 interoperable communications equipment for direct and exclusive line 38 use by police or sheriff personnel employed by the city or county. line 39 (c) 99 ACA 3— 7 — line 1 (d)  When two or more propositions for incurring any line 2 indebtedness or liability are submitted at the same election, the line 3 votes cast for and against each proposition shall be counted line 4 separately, and when two-thirds or a majority or 55 percent or a line 5 majority of the voters, as the case may be, voting on any one of line 6 those propositions, vote in favor thereof, the proposition shall be line 7 deemed adopted. line 8 line 9 CORRECTIONS: line 10 Text—Page 4. line 11 line 12 O 99 — 8 —ACA 3