HomeMy WebLinkAboutMINUTES - 12051995 - SD3 a ,
TO: BOARD OF SUPERVISORS Contra
r
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa
:= County
�,;.-- .•ATO
DATE: November 29, 1995
SUBJECT: LEGISLATION: ACA #8 (GOLDSMITH)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
CONSIDER taking a position in SUPPORT of Assembly Constitutional Amendment
#8 (Goldsmith) regarding unfunded mandated on local governments.
BACKGROUND:
Supervisor Jim Rogers has asked that this item be placed on the Board's agenda so
the Board will have an opportunity to discuss and possibly to take a position on ACA
8 (Goldsmith).
ACA 8 was introduced by Assemblyman Jan Goldsmith in February, 1995. It was
considered and amended on three separate occasions in the Assembly Local
Government Committee. The Committee finally passed the bill on a vote of 6:3 on
August 28, 1995. The bill is currently in the Assembly Committee on Elections,
Reapportionment and Constitutional Amendments. As amended August 29, 1995,
the bill does all of the following:
❑ Enacts the Government Reform and Accountability Act of 1996.
❑ Adopts findings to the effect that:
local governments in California provide the public services, programs
and activities most needed and used by the people and are the units of
government most accessible and responsive to the people.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
G �
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER�
SIGNATURE(S): �."XL�J� �! /J/• //4A/
ACTION OF BOARD ON —Qe-cember 5-,1.9.9.5 APPROVED AS RECOMMENDED _x/_ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN, p p
County Administrator ATTESTED 0.4ca.1'- n l .5- / I /
Contact: Auditor-Controller PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
Les Spahnn: Heim, Noack, Kelly & Spahnn
BY DEPUTY
Proposition 13 inadvertently transferred control of local financial
resources from local governments to state government without the
consent of California's citizens and that this transfer has shifted
governmental power away from the people and has eroded local
government's ability to provide the services desired by the people.
Proposition 4 was intended to limit the amount of public money spent
on state government and to preserve the financial resources of local
governments by requiring an appropriation of state funds for every new
program, higher level of service, increase in benefits, reduction in
revenue or other cost imposed upon local governments by the State.
The State has not provided adequate funding to pay for State mandates
and instead has taken the property tax revenue which has historically
been used to provide those services desired by the people.
It is necessary to amend the Constitution to clarify the intent of
Proposition 13 and Proposition 4.
This measure will not increase taxes.
By approving this measure the people intend to require that local
governments which are accountable to the people retain control over
revenues necessary to provide public services, to protect the fiscal
resources of local governments, assure the citizens that State
mandates will not be funded with local revenues. This latter provision
is more specifically determined to confirm the right of local
governments to decline to perform state mandates which are not fully
funded and preserve the right of each local government to be
reimbursed from State revenues for all of the costs of any mandate, as
required by Proposition 4.
❑ Repeals Section 6 of Article XIIIB of the Constitution. This Section currently
reads as follows:
"Whenever the Legislature or any state agency mandates a
new program or higher level of service on any local
government, the state shall provide a subvention of funds to
reimburse such local government for the costs of such
program or increased level of service, except that the
Legislature may, but need not, provide such subvention of
funds for the following mandates:
(a) Legislative mandates requested by the local agency
affected.
(b) Legislation defining a new crime or changing an
existing definition of a crime; or
(c) Legislative mandates enacted prior to January 1, 1975,
or executive orders or regulations initially
implementing legislation enacted prior to January 1,
1975."
2
❑ Enacts a new Section 6 to Article XIIIB, which does the following:
Requires the Legislature to fully fund for each fiscal year, solely from
State or Federal funds, every mandate imposed directly or indirectly on
any local government.
Specifies that no unfunded mandate is enforceable against any local
government, except as specifically provided for in this section.
Provides that the Legislature may, but is not required to, fund the
following mandates:
✓ Ones expressly requested by the governing body of that local
government.
✓ Services performed by police or sheriffs' departments to enforce
that part of any mandate that creates a new crime or redefines an
existing crime.
✓ Performance of or compliance with a mandate enacted prior to
January 1, 1975 or executive orders or regulations initially
implementing that mandate.
Provides a mechanism whereby a local government can notify the
Governor that a mandate is not fully funded and provides for actions
which are to be taken in this event.
Provides a method for local governments to claim for and recover their
costs if they comply with an unfunded mandate. Includes provision for
the payment of interest when the State has to reimburse a local
government for the costs of complying with an unfunded mandate.
Provides that no interim or final equitable relief shall be granted against
a local government unless the State has established that one or more
of the following circumstances exists:
✓ For mandates enacted prior to January 1, 1975, the mandate
results in no extraordinary costs, as defined, to the affected local
government after June 30, 1996.
✓ For mandates enacted after January 1, 1975, the mandate does
not require the local government to incur any cost or reduction in
revenue after June 30, 1996.
✓ The only costs incurred are for an optional program or service.
✓ The State has reimbursed the local agency for the costs of the
program.
Provides that no interim or final equitable relief shall require a local
government to incur costs which exceed the funding provided by the
State.
3
Prohibits the State from offsetting money owed for a mandate against
other funds due the State from the local government until there is a final
judgment determining that a right of setoff exists.
Prohibits awarding attorney's fees against a local government.
X11 Declares that no local government is required to comply with any
unfunded mandate until one of the following conditions is met:
✓ The State fully reimburses the local government for the costs
associated with implementing the mandate.
✓ The governing body of the local government determines to
comply with the mandate.
Declares that no protection provided by this section or any State or
Federal law is waived by reason of the local government's determining
to comply with the mandate..
Prohibits the State from compelling any local government or local
government employee to comply with an unfunded mandate.
Provides that any mandate imposed by statute or by the Governor or
State agency that is not funded by the State in any two consecutive
fiscal years is repealed effective June 30 of the second fiscal year.
❑ Amends the definition of several terms currently defined in the Constitution.
❑ Contains a severability clause.
❑ Indicates that its provisions are effective as soon as adopted, are retroactive
in order to apply to every mandate as defined, but prohibits the measure from
being interpreted as retroactively expanding the right of any local government
to reimbursement for costs incurred before July 1, 1996 or to permit the
reopening of any claim for reimbursement if the claim has already been finally
adjudicated.
In view of the favorable impact passage of this measure would have on the ability
of the County to recover funds for unfunded mandates or to refuse to provide
services required under an unfunded mandate, it is recommended that the Board of
Supervisors consider adopting a SUPPORT position with regard to ACA 8.
4
898 ASSEMBLY RECESS HISTORY'
A.C.A. No. 8—=Goldsmith. A.0
A resolution to propose to the people of the State of California an.arnendment
to the Constitution of the State,by repealing and adding Section.6 of, and
amending Section 8 of, Article XIIIB .thereof,relating to funding of local
government.
1995
Feb. 8-Read first time.To print.
Feb. 9—From printer. May be heard in committee March 11. .
Feb. 23-=Referred to Com. on L. GOV.
July 29-From committee chair, with author's amendments: Amend, and
re-refer to Com. on L. GOV. Amended.
July 3Q.--Re-referred to Com. on L. GOV.
Aug. 16—In committee: Hearing postponed.by committee.
Aug. 21-From committee. chair, with author's amendments: Amend, and
re-refer to Com.'on L.GOV. Amended.-
Aug. 22-Re-referred to,Com..on L. GOV.
Aug. 28—From committee: Amend, be adopted asamended, and,re-refer to
Com. on E,R..&.C.A:
Aug 29-11ead second time.and amended..
Aug.':30-=Re=referred to Com. on-E.,A. &,C.A.
A.C.A. No. 9--Rainey, Campbell,.Conroy, and Harvey.
A resolution to propose to-tlie:peo le of the State of California an amendment
to the Constitution of the Siate,�y adding Section 20 to Article XVI thereof, .
relating to'public.finance. i..
1995
Feb. ` 15=Read first time.To print
Feb. 16=From printer:May be heard in committee March'18.
Feb. . 27—Referredto Com. on U. &.C.
April 24—In committee: Hearing postponed by committee.' `
May 1—In committee. Hearing postponed by committee
May 31—In'committee: Hearing postponed by committee A.0
June :`:7LAFrom .committee chair; with author's amendments: Amend, and
re=refer to Com. on U. & C. Amended
June ' 7—Re-referred to Com..ori U. &`C
June,, 12—In committee: Set;first hearing. Failed.passage.,:Reconsideration.
:granted-
A.C.A. No. M Bowler;
A resolution to propose to the people of the State of California an amendment
to the Constitution of the:State,by amending Section 10 of Aiticle VI thereof,
relating fo writs of habeas corpus.
,:1995 -
Feb 17 Read first,tune::To print."
Feb. 211 "!From printer.`May be heard in committee'March 23
Feb. 27-11eferred to,Com. on.PJB. S.
A C.A No:'117-7Morrow.
A resolution to propose'to'the people of the State of California an amendment t
to'the Constitution of the.State; by adding Section:12 to Article VII of the
,
California CA.C.
onstitution;;relating•to state functions
Feb. 21=Read first time. Top rint.
Feb. 22—From printer. May be heard in committee March 24.
Mar. 2-Referred to Coin. on.C.P.,G.E & E.D.
AMENDED IN ASSEMBLY AUGUST 29, 1995
AMENDED IN ASSEMBLY AUGUST 21, 1995
AMENDED IN ASSEMBLY JULY 29, 1995
CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION
Assembly Constitutional Amendment No. 8
Introduced by Assembly Member Goldsmith
February 8, 1995
s
b
Assembly Constitutional Amendment No. 8-A resolution
'to propose to the people of the State of- California an
amendment to the Constitution of the State,.by repealing and
adding Section 6 of, and amending Section.8 of,"Article XIII B
R`� t thereof, relating to funding of local government.
LEGISLATIVE COUNSEL'S DIGEST
ACA 8, as amended, Goldsmith. Funding 'of local
government._
Existing provisions .of the California Constitution provide
a that whenever the Legislature or any state agency mandates
a new program, or higher level of service on any local
government, the state shall provide a subvention of funds to
reimburse ,the local government for the costs of the program
or increased level of service, except that the Legislature may,
but need- not, provide a subvention of funds for certain
1 mandates, as specified.
This measure would require the Legislature to fully fund for
each fiscal year, solely from state or federal revenues, every
mandate imposed directly or indirectly on any local
96
ACA 8 — 2 —
government
-- 2 --government by any act of government, as defined. The t >'
measure would provide that any unfunded mandate shall not
be enforceable against any local government except as
specified. The measure would permit the state to fully or
partially fund the costs of a local government for specified
mandates. The measure would permit a local government to
notify the Governor that an identified mandate is not fully
funded and would specify the actions that the state may make.
The measure would specify other remedies for a local
government I seeking reimbursement for mandates and
provide that unfunded mandates shall not be performed or
complied with by a ,local government until specified
conditions are :met. The measure would also provide that
every mandate,imposed by statute, or the Governor or part
of the executive branch that is not funded by the state in any
2 consecutive years is repealed by operation of law. The
measure would also define the terms "mandate," "act of
government," "extraordinary,.costs," ``reduction in revenue,"
"state revenue," and "unfunded mandate" with respect to the
above provisions.
The measure would state related findings and declarations. °
The measure would specify when various of its provisions
become operative.
Vote. 3.3. Appropriation:. ' no., Fiscal committee: yes.
State-mandated local program: no.
1 Resolved by the Assembly, the Senate concurring, That
2 ' the Legislature 'of the State of California at its 1995-96
3 .Regular Session commencing on the fifth day of
4 December,, 1994, two-thirds of the membership of each
5 house concurring, hereby proposes to the people of the
6 State of California that the Constitution of the State be
7 amended as follows: ?,
8 First--That this measure shall be known and may be
9 cited as the Government Reform and Accountability Act
10 of 1996.
11 Second—That the people of California find and declare
12 all of the following:.
13 (a) (1) Counties, cities, . school districts, and other
14 local governments provide the public services,programs,
96
- 3 — ACA 8
1. The e 1 and activities most needed and used by the people and
.all not 2 are the units of government most accessible and
apt as 3 responsive to the people.
illy or 4 (2) The approval by the people of Proposition 13 in
,cified 5 1978 provided property tax relief to California's citizens.
;ent to 6 However, Proposition 13 also inadvertently transferred
t fully ''. `T € 7 control of local financial resources from local
make. `"� 8 governments to state government without the consent of
local 9 California's citizens. This transfer has shifted
and 10 governmental power away from the people and the
led or 11 governmental units closest to the people and has eroded
,cified 12 the ability of local governments to provide the public
that 13 services, programs, and activities desired by the people.
r part 14 The people did not intend these results to occur.
Ln any - 15 (3) The approval by the people of Proposition 4 in 1979
The 16 was intended to limit the amount of public money spent
act of 17 on state government and to preserve the financial
,nue," 18 resources of local governments by requiring an
to the 19 appropriation of state funds for every new program,
20 higher level of service, increase in benefits, reduction in
Ltions. 21 revenue, or other cost imposed upon local governments
,isions 22 by the.State.
23 (4) The State has not provided adequate state
yes. 24 revenues to . local governments to 1 fund the cost of
. 0 25 performing or complying with state mandates. Instead,
26 local property tax revenues that have historically been
That 27 _used to fund public services, programs, and activities
95-96 - 28 desired by .the people have been taken by the State to
ly of 29 fund state programs.
each 30 (5) To ensure the viability and stability of local
A the 31 governments, to enhance the availability of local
le be 32 revenues to fund local services, programs, and activities,
33 and to reaffirm the principle of local control of the
ay be .34 revenues and sources of revenues of local governments,
y Act 35 it is necessary to amend the California Constitution in
36 order to clarify .the intent, purpose, and application of
'Clare 37 Proposition 13 and Proposition 4.
38 (6) This measure will not raise state or local taxes.
other � 39 (b) By approving this measure, the people intend to:
rams, ` Wi
96 96
ACA 8 — 4 -
1
4 -1 (1) Require that local governments accountable to the
2 people retain control over the revenues necessary to
3 provide public services, programs, and activities, such as
4 public safety, public health, public schools, libraries, and
5 public works.
6 (2) Protect the fiscal resources of local governments
7 and assure California's citizens that state mandates will
8 not be funded with local revenues. Specifically, the
9 people intend to:
10 (A) Confirm the right of local governments to decline
11 to perform or comply with state mandates because of
12 reductions in revenue or the failure of the State to fully
i 13. fund the costs of these mandates from state revenues.
{
14 (B) Preserve and retain for each local government all
15 rights against the State, including, but not limited to, the
16 right to be reimbursed from.state revenues for all of the
17 costs of any mandate, as required by Proposition 4 and this
18 amendment.
i 19 Third—That,, Section 6 of Article XIII'B thereof is
20 repealed.
21 Fourth—That Section 6 is 'added to Article XIII B
.22 thereof, to read:
23 SEC. 6. (a) The Legislature shall fully fund,for each
24 fiscal year, solely from state`or federal revenues; every
25 mandate imposed. directly or indirectly, on any local 103
26 government by any act of government,- as defined in
27 subdivision (k) of Section 8. Any-unfunded mandate shall
. 28 not. be enforceable for any .purpose .against any local
29 government or any of its officers,employees, or agents by
30 any person, the State of California; any court, or any other
31 entity of government, except as otherwise specifically
32 provided in this section. Funding required by this section
33 may be made by an appropriation contained in any bill.
34 The initial level of funding for the first year a mandate is
� g y
35 operative may be based upon an estimate of costs
36 provided by the Legislative Analyst, affected local
37 governments, or other sources of credible information
38 that the Legislature shall determine.
39 (b) Notwithstanding any other provision of this
40 section, the State may, but is not required to, fully or ;.A)
96
- 5 — ACA 8
e to the ell) 1 partially fund the costs to a local government of any of the
sary to 2 following:
such as 3 (1) A mandate expressly requested by the governing
.es, and 4 body of that local government.
5 (2) Services performed , by police or sheriffs'
nments 6 departments to enforce that part of any mandate that
tes will ) (0 7 creates a new crime or redefines an existing crime.
ly, the 8 (3) Performance of or compliance with a mandate
9 enacted prior to January 1, 1975, or executive orders or
decline 10 regulations initially implementing that mandate.
.use of 11 (c) A local government may at any-time notify the
to fully 12 Governor that an.identified mandate is not fully funded.
Zues. 13 Upon notification, the State shall do one or more of the
lent all 14 following:
to, the 15 (1) Disburse to the local government federal or state
I of the 16 revenues sufficient to fully and specifically cover the cost
tnd this 17 of performing or complying with the mandate.
18 (2) Repeal, rescind, or otherwise vacate the act of
-reof is 199overnment creating or imposing the mandate.
M& 20 (3) Assume sole financial, administrative, and legal
XIII B 21 responsibility for performing the mandate.
-s exeittsive.
�r each 23 eek � f �eelarraterl,ju of ' -elle€to
-every 24 eempe! per-€er-fflaftee of or eemphanee with the mane
y local 25 4 issrtre.The ae ion aha4 befrled ai*d gemmed upen the leeal
ned in 26 iaent withift 60 days, of the traiistfiit of the
to shall 27 all be died eftl�- ift a`eek in whieh
Y local 28 Oi:e.leeeA wfA ie whelp of p situated.
ents by
y other 30 (4) ,Invoke the provisions of subdivision (i) for any
Afically 31 mandate described in subdivision (i)
section 32 (d) (1) If a local government fully or partially
ny bill. 33 performs or complies with an. unfunded mandate and
idate is 34 incurs any costs or suffers any reduction in revenue not
f costs 35 covered by state revenues disbursed by the State to
1 local 36 specifically fund the mandate, the local government may
mation 37 apply directly to the Legislature for reimbursement. The
38 Legislature shall appropriate from state revenues and
:)f thisf 39 cause to. be disbursed to the local government funds
sully or )
96 96
ACA 8 — 6
1 sufficient to fully reimburse the local government for all gib'
2 those costs or reductions in revenue.
3 {2} A leeal trra-y file ae aetiee itt
4 eetrr-t fey esker of the
5 +A+ A deelaretter-yitidgffient that the State is
6 t,& fully fund aspeeified aet„
7 +B+ Menet'to the leeal fey the
8 eestg of ar ee plying with a ttde to et to
9 offset a reduetioit i-ft reveiitre.
10 ppThe aetieit sheA be t e� � a eet�ty � whie the
��
11 ieeetl geverriaffleiit i7s whelly er partly situated. Aity�'
12 jttdgtfteftt obtained by a leeal eft'_ agaiftst the
13 State shell be presented to the 'eftl; 11r. who shall draw
14 a warra fef payffient of the judgmeftt &eff state
15 -
16
1.7 (2) Whenever the State is required to reimburse a
18 local 'government for the cost of any mandate, the
19 payment shall include interest on the amount of the cost
20 from the date the local government applies for ,
21 reimbursement pursuant to paragraph (1);e-the date set
22. the eatwt in an aetie bteiight purstmat to p"agraph
23 ;until the . payment is disbursed to the local.
24 government. The rate of interestshall be the average rate
25 of earnings on all state funds invested during the period
26 for which interest is due to the local government.
27 -+4} z4 leeal geyer-titft 4ifte pur-sue either
28 e- beth of the remediesby +1+ aed
29
30 (e) , In any action brought pursuant to subdivision (c)
31 or (d)
32 (1) No interim or final legal ew equitable relief of any
33 kind shall be granted against a local government or any , }
34 of its officers, agents, or employees, unless the eetrr
35 exereistits inner=n • , finds that the State
36 has established by clear and convincing evidence that one
37 . or more. of the following circumstances exist:
38 (A) For mandates enacted prior to January-1, 1975, the
39 mandate results in no extraordinary costs, as .defined in
j
96
- 7 — ACA 8
L for all 1 subdivision (l) of Section 8, to the affected local
2 government after June 30, 1996.
pee 3 (B) For mandates enacted on or after January 1, 1975,
4 the mandate does not require the local government to
ited 5 incur any cost or reduction in revenue after June 30, 1996.
6 (C) The only costs the local government has incurred
the 7 or will incur are costs for which reimbursement is
e; e- to 8 optional pursuant to subdivision (b) .
9 (D) The State has disbursed to the local government
the 10 state revenues sufficient to cover all of the costs,including
faeey 11 extraordinary costs, or reductions in revenue incurred
est the 12 and anticipated to be incurred by the local government
rl}draw 13 in performing or complying with the mandate.
e state 14 (2) No interim.or final lega4 of equitable relief shall
15 require a local government to incur costs to perform or
16 comply with a mandate that exceeds the funding
3urse a 17 provided to the local government by. the State for that
te, the 18 mandate or for extraordinary costs.
:he cost 19 (3) The. State shall not withhold funding for the
ies for 20 mandate at issue or for any other mandate for which state
dftt-e,sf,4 21 funding is required by this section or withhold any other
-agraph 22 revenue due from the State to the local government,
e local 23 unless and until entry of a final judgment
tge rate 24 determination that a right of setoff exists in favor of the
-period 25- State.
t. 26 (4) No costs or attorney's fees may be awarded against
e ,.� 27 any local government or any of its officers, agents, or
-R+ ftHd 28 employees.
29 , (f) A local government is not required to perform or
Sion (c) . 30 in any manner comply with any unfunded mandate
31 unless and until one of the following conditions is met:
!f of any 32 (1) State revenues to fully and .specifically cover all
t or any 33 costs, including extraordinary costs, or - reductions in
34 revenue resulting from the mandate are first disbursed by
he State 35 the State to the local government before or-as those costs
that one 36 or reductions in revenue are incurred.
37 {-2* -A eexrt erg of fitial jtdgffiettt eensiste-Bwith
975, the 387 -Fed ,.
at,...w, t
: ,.,,
fined in 39 emits.
40 J4-
96 96
n
{
ACA 8 — 8
1 (2) A majority of the governing board of the local
2 government determines, in its sole discretion, to fully or
'3 partially perform or comply with the mandate. The
4 legislative body of the local government shall consider
.5 the purpose of the unfunded mandate in light of the
6 totality of the circumstances of the local government and, t
7 in its sole discretion, shall determine the most
8 appropriate manner b which to provide the program,Y p p , g
9 service, benefit, or activity that is the subject of the
10 mandate. R
11 (g) Any protection or entitlement conferred- upon.a 1]
12 local government by this section or any state or federal H
13 law is not waived if the local government or any of its 1�
14 - 'officers, employees; or agents performs or complies with 19
15 one or more unfunded mandates. ; Neither' `a local 15
16 government.nor any of its officers; employees, or agents lE
17 shall be compelled toperform or` comply with or incur 17
18`1. any liability for failure to perform or comply with any 18
19 unfunded mandate; regardless of past.performance of or 19
20 compliance with all or part of any mandate �1� 20
21 _ (h) No local government, and no person acting in the �`` 21
22 "official ,capacity of-officer,'employee; or agent of a. local .22
23 .government, shall be compelled by theState to perform 23
24: or comply with a mandatewhen state.or federal revenues 24
25 necessary lo. .pay for the costs, including extraordinary (. 25
126 ` costs, of the mandate have not been providedto-the local 26
27 government or when those revenues allocated 'for:.the 27
28 mandate have already been spent to perform or comply 28
29 ' with the mandate. As to`any an for` which state 29
30 funding is required by this section or other provision of - 30
31 law, no officer, agency or branch of state government 31
32 shall do any of the following: 32
33 1 Com el an local overnment or an of its f 33
34 officers, employees, or agents, to perform or in any34
35 manner comply with that mandate. 35
36 (2) Require any local government to impose;increase, 36
37 or use the proceeds of any locally levied tax, assessment, 37
38 fee, rate, charge; or other source of local revenue to fund 38
39 any mandate. 39
( 40
96
- 9 — ACA 8
the local e el 1 (3) Require any local government to waive any right
o fully or 2 to full funding from state revenues, or to decline to
ate. The 3 perform or comply with any mandate for lack of that
consider 4 funding, or to full reimbursement for the costs of that
it of the 5 mandate.
-ient and, 6 (4) Disclaim, or implement any disclaimer of, the
-ie most 7 existence of a mandate or the State's responsibility to fully
grogram, 8 fund a mandate from state revenues.
;t of the 9 (5) Impose or attempt to impose in any manner a
10 requirement that a local government waive all or part of
upon a 11 its entitlement to full funding for one or more mandates,
r federal 12 from state revenues, as a condition for receiving state
tiny of its
13 revenues for one,or more other mandates.
dies with 14 (6) Require any local government to pursue any
`a local 15 remedy provided in subdivision (d) in.any period of time
3r agents 16 less than four.years after any fiscal year in which:the local
or: incur 17 government fully or partially performs an identified
with any 18 mandate.
nce of or 19 (-7-}- a se e � YUM
20 few i-ft aft etetieft br-o . by a. leeal gev ftt
ng
in the s� 21 _pm t I to StlbdiViSi J4)-
of a. local 22. .(i) Every mandate. imposed. (1) by statute passed by
perform 23 the ;Legislature or ,(2) by.: the Governor or an officer,
revenues 24 agency, or department of the executive branch that is not
ordinary �.(,o25 funded by the State in any two consecutive fiscal years
the local >; 26 after the date it becomes operative is repealed by
I for the 27 -operation of law, effective June 30 of,the second fiscal
r comply 28 year.
ch state 29 Fifth-=That Section 8: of Article XIII B thereof is
of _
30 amended to`read:
vision
ernment 31 SEC. 8. As used.in this article and except as otherwise
32 expressly provided herein:
33 a "A ro riations sub'ect to.limitation" of the State
iy of its O Pp p J
r in any 34 means any authorization to expend:-during a fiscal year
0
35 the proceeds of taxes levied by or for the State, exclusive
increase, 36 of state subventions for the use and operation of local
;essment, 37 government (other.than subventions made pursuant to
.e to fund 38 Section 6) _ and further exclusive of refunds of taxes,
39 benefit payments from retirement, unemployment
` r 40 insurance, and disability insurance funds.
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ACA. 8 _ 10 -
1
10 -1 (b) "Appropriations subject to limitation" of an entity ;I 1
2 of local government means any authorization to expend 2
3 during a fiscal year the proceeds of taxes levied by or for 3
4 that entity and the proceeds of state subventions to that 4
5 entity (other than subventions made pursuant to Section 5
6 6) exclusive of refunds of taxes. 6
7 (c) "Proceeds of taxes" shall include, but not be 7
8 restricted to, all tax revenues and the proceeds to an 8
9 entity of government, from (1) regulatory licenses, user 9
10 charges, and user fees to the extent that those proceeds 10
11 exceed the costs reasonably borne by that entity in 11
12 providing the regulation, product, or service, and (2) the 12
13 investment of tax revenues. With respect to any local 13
14 government, "proceeds of taxes" shall include 14
15 . subventions received from the State, other than pursuant 15
16 to 'Section 6, and, with respect to the State, proceeds of 16
17 taxes shall exclude these subventions. 17
1& (d) "Local government means any city, county, city 18
19 and county, school district, special district, authority, or 19
20 other political subdivision of or within the State. 107 20
21 (e) (1) "Change in the cost of living" for the State,,a 21
22 school district,-or a community college district means the 22
23 'percentage change in California per capita personal 23
24 income from the preceding year.. 24
25 . , (2) "Change in the cost of living" for an entity of local t 25
26 government, other than a school*district or a community 26
27 college district,shall be either (A) the percentage change 27
28 in California per capita personal .income from the 28
29 . preceding year, or (B) the percentage change in the local 329
0
30 assessment roll from the . preceding year for the
31 jurisdiction due to the addition of._local nonresidential 31
32 new construction. Each entity of local government shall 32
33 select its. change in the cost of living pursuant to this ` _ 33
34 . paragraph annually by a recorded vote of the entity's 34
35 governing body. 35
36 (f.) "Change in population" of any entity of 36
37 government, other than the State, a school district, or a 37
38 community college district, shall be determined by a 38
39 method prescribed by the Legislature. 39
40
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in entity f'� '� 1 "Change in population" of a school district or a
expend 2 community college district shall be the percentage
3y or for 3 change in the average daily attendance of the school
s to that 4 district or community college district from the preceding
Section 5 fiscal year, as determined by a method prescribed by the
6 Legislature.
not be ((! 7 "Change in population" of the State shall be
Is to an 8 determined by adding (1) the percentage change in the
ses, user 9 State's population multiplied by the percentage of the
)roceeds 10 State's budget in the prior fiscal year that is expended for
entity in 11 other than educational purposes for kindergarten and
1 (2) the 12 grades ene I to 12, inclusive, and the community colleges,
ny local 13' and (2) the percentage change in the total statewide
include 14 average daily attendance in kindergarten and grades ene
)ursuant 15 1 to 12, inclusive, and the community colleges; multiplied
ceeds of . 16 by the percentage of the State's budget in the prior fiscal
17 year that is expended for educational purposes for
nty, city 18 kindergarten and grades ere I to 12, inclusive, and the
ority, or 19 community colleges.
20 Any determination of population pursuant to this
State, a � 21 subdivision, other than that measured by average daily
eans the 22 attendance, shall be revised, as necessary; to reflect the
personal 23 periodic census conducted by the United States
} 24 Department of Commerce, or a successor department.
Of local "(,0 25 (g) "Debt service" means appropriations required to
amunity 26 pay the cost of interest and redemption charges,
, change 27 including the funding of any reserve or sinking fund
-om the 28 required in connection therewith, on indebtedness
the local } 29 existing or legally. authorized as, of January 1, 1979, or on
for the 30 bonded indebtedness thereafter approved according to
sidential 31 law by a vote of the electors of the issuing entity voting
ent shall 32 in an election for that purpose.
t to this 33 (h) The "appropriations limit" of each entity of
entity's 34 government for each fiscal year is that amount which
35 total annual appropriations subject to limitation may not
itity of 36 exceed under Sections 1 and 3. However, the
-ict, or a 37 "appropriations limit" of each entity of government for
.ed by a 38 fiscal year 1978-79 is the total of the appropriations
_ 39 subject to limitation of the entity for that fiscal year. For
i 40 fiscal year 1978-79, state subventions to local
96 96
ACA 8 — 12 —
I
12 -1 governments, exclusive of federal grants, are deemed to 1
2 have been derived from the proceeds of state taxes. 2
3 (i) Except as otherwise provided in Section 5, 3
4 "appropriations subject to limitation" do not include local. 4
5 agency loan funds or indebtedness funds, investment (or 5
6 authorizations to invest) funds of the State, or of an entity E
7 of local government in accounts at banks or savings and ( 7
8 loan associations or in liquid securities. 8
9 (j) "Mandate"means any act of government that on or 9
10 after,January 1, 1975, directly or indirectly: 10
11 (1) Requires or will require a local government to 11
12 provide any new program, service, benefit, or activity. 12
13 (2) Increases the level or expands the scope of any 13
14 program, service, benefit, or activity provided by a local 14
15 government. 15
16 (3) Causes new costs, including any cost-of-living 16
17 adjustments, to be incurred by a local government to 17
18 provide a program, service, benefit, or activity or causes 18
19 any reductions in revenue for any local government. 19
20 (4) Shifts all orpart of the cost of any program, service, ;; 20
21 benefit, or activity from the State or from any unit of state 21
22 or local government to a local.government. 22
23 (5) Imposes upon .a local government any .fee or 23
24 charge for providing any program, service, or activity for 24
25 the benefit of the State or a local government, unless the 25
26. fee or charge .is first approved by the affected local 26
27 government. 27
28 Notwithstanding. , any '` other provision of law, 28
29 "mandate" includes any act of government, regardless of 29
30 whether the act. applies to governmental or 30
31 nongovernmental functions. and regardless of whether 31
32 the act applies uniquely to local governments or also 32
33 applies to private persons or other entities in the state. 33
34 (k) "Act,ofg overnment" means: 34
35 (1) The enactment, reenactment, or amendment of 35
36 any statute by the Legislature. 36
37 (2) The promulgation, adoption, making, or 37
38 amendment by the Governor or any officer, agency, or 38
39 department of the executive branch of any order, rule, 39
40
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-- 13 — ACA 8
emed to :; ' 1 regulation, or decision implementing or interpreting any
.xes. 2 state or federal law.
tion 5, 3 (3) The promulgation, making, or filing of any order
ide local 4 or judgment or equivalent judicial process by any state
cent (or 5 court implementing or interpreting any state or federal
in entity 6 law or any federal court implementing or interpreting
ings and 7 state law.
8 (l) "Extraordinary costs" means that portion of the
-iat on or 9 annual increase in the total cost to a local government to
10 perform or comply with a mandate after June 30, 1996,
ment to 11 that exceeds the cost-of-living and population
ctivity. 12 adjustments computed pursuant to subdivisions (e) and
Of any 13 (f) .
Y a local 14 (m) "Reduction in revenue" means any act of
15 government:
of-living 16 (1) Providing any exemption from any fee,
ment to 17 assessment, charge, or tax imposed,levied, or collected by
)r causes 18 a local government.
cent. 19 (2) Prohibiting, or limiting revenue from, any fee,
,service, 20 assessment, charge, or tax imposed,levied, or collected by
t of state 21 a local government.
22 (3) Reducing state subventions to, or reducing state or
fee or 23 federal revenues to, a- local government when the
tivity for24 . reduction is not offset:
m ;
mess the 41) 25 (A) By an equivalent reduction in the costs for that
ed local 26 local government to perform or comply with mandates,
27 or
of law, 28 (B) By providing the local_ government with other
wdless of 29 revenues or sources of revenue acceptable to the
atal or 30 governing body of the local government.
whether 31 (4) Redistributing state subventions or other state
or also 32 revenues or.federal revenues among local governments
e state. 33 when any resulting loss of revenue for an affected local
34 government is not offset by equivalent new state or
tment of 35 federal revenue or an equivalent reduction in the costs
36 for that local government to perform or comply with
ing, or 37 mandates.
;ency, or 38 (n) "State revenue" means the proceeds of taxes,
ler, rule, _ 39 assessments, fees, rates, charges, fines, penalties, or
40 forfeitures levied, imposed, or collected by the State, the
41
96 96
t
q
ACA 8 — 14 —
I
14 -1 proceeds of any federal subventions and gifts to the State,
2 and the proceeds of earnings on investments made by the t
3 State. "State revenue" does not include the proceeds of k
4 taxes, assessments, fees, rates, charges, fines, penalties, or
5 forfeitures levied, imposed, or collected by a local
6 government, the proceeds of any federal subventions and
7 gifts to a local government, or the proceeds of earnings on
. ti
8 investments made by a local government. i
9 (o) "Unfunded mandate" means any mandate for
10 which the State has not disbursed to each affected local
11 government the total cost to the local government of
12 performing or complying with the mandate after June 30,
13 1996.
14 Sixth—That if any provision of this measure or the
15 application of any provision to any person or
i 16 circumstance is held invalid, the remainder of this
17 measure shall not be affected thereby, to the extent the
18 remainder can be given effect or applied to persons or
19 circumstances other, than those as to which it is held
- 20 invalid.
21 Seventh--That (a) The sections of this measure that
a 22 repeal and add Section 6 and amend Section 8 of Article
t 23 XIII:B of the California Constitution take effect and are
24 operative immediately upon. adoption of this measure
25 and are retroactively operative as to and deemed to apply .
26 to every mandate, as, defined in Section 8 of Article
27 XIII B. However, nothing in this measure shall be
28 deemed or construed to (1) retroactively expand the
29 right of a local government to reimbursement for costs
30 incurred by a local government before July 1, 1996, to
31 perform or comply with a mandate, or (2) reopen any
32 claim for reimbursement made by a local government
33 against the State for those costs, if the claim was finally
34 adjudicated prior to the effective date of this measure.
35 (b) All other provisions of-this measure are effective
€ 36 and operative immediately upon adoption of this
37 measure.
38 (c) Each provision of this measure is self-executing.
39 Eighth—That (a) This measure shall be liberally
40 construed to implement the intent and effectuate the t
96
f
r
s
— 15 — ACA 8
e State, 1 purposes set forth in this measure. All statutes and
' by the f 2 provisions of the California Constitution in conflict with
,eeds of 3 Section 6 or 8 of Article XIII B of the Constitution, as
lties, or 4 amended or adopted by this measure; are repealed and
a local 5 superseded to the extent of the conflict.
ons and 6 (b) Nothing in this measure, or in the California
Lings on R 7 Constitution as it read prior to this measure, shall be
mss' 8 deemed or construed to create, recognize, or confirm any
ate for 9 general or specific power in any branch of state
,d local 10 government to compel any local government to perform
cent of 11 or in any manner comply with any mandate that is not
une 30, 12 fully funded by state revenues,. as required by this
13 measure.
or the " 14 (c) Nothing in this measure, or in the California
ion or 15 Constitution as it read prior to this measure, shall be
of this r 16 deemed or construed to create, recognize, or confirm any
ent the 17 general or specific power in any branch of state
sons or 18 government to transfer or sequester, or to allocate or
is held r 19 reallocate to other entities of government, or set off
20 against any funds owing to the State or any state
:re that 21 department or agency, or expropriate for any use or
Article 22 purpose, any of the local revenues of a county, city, or city
ind are 23 and county without the consent of the governing body or
ieasure 24 the voters of the affected county, city, or city and county.
o apply r -` - 25 (d) Nothing in this measure shall be deemed or
Article 26 construed to affect the ability of the State and one or more
:call be 27 local governments,,or of one or more local governments,
nd the 28 to contract to jointly provide public services, programs,
.)r.costs 29 benefits, or activities, or to contract for one or more of
996, to 30 them to provide public services, programs, benefits, or
sen any 31 activities for and on behalf of the other contracting
-nrnent 32 entities, or to contract to pledge, share, or transfer
finally 33 revenues among themselves for those purposes.
asure.
34 (e) Nothing in this measure shall be deemed or
Tective 35 construed to affect (1) the entitlement of each school
of this 36 district and community college district to the aggregate.
37 amount of revenue calculated for its support pursuant to
sting. 38 Sections 8 and 8.5 of Article XVI or (2) the obligation of
berally _ 39 the General Fund to supplement other sources of
ite the ....''
96 96
j
ACA 8 — 16 -
1
16 -
1 revenue for these districts as necessary to provide that
2 support.
3 Ninth—That pursuant to subdivision. (b) of Section 10
4 of Article II of the California Constitution, if this measure
5 conflicts with the constitutional provisions of another
6 measure appearing on the same ballot,both measures are
7 approved by the voters, and this measure receives more
8 affirmative votes than the other measure, this measure
9 shall become effective and control in its entirety to the
10 extent of that conflict and so much of the other measure
11 as conflicts with this measure shall not become effective.
12 If the constitutional amendments contained. in this
13 measure conflict with statutory provisions of another
14 measure on the same ballot, and, both measures are
15 approved by the voters, the constitutional provisions of
16 this measure shall become effective and control, and the
17 other measure shall not become effective for any
18 purpose, regardless of the margins of approval of each
$ 19 measure.
O
96