CC - Item 5A - SCA 1 & SCA 3 - Allowing Majority Voter Approval for Special Transportation Taxes and School Bond Issues gjj(--,
a�
®�: stattep ort
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER W
DATE: APRIL 21, 1999
RE: SCA 1 (O'CONNELL) AND SCA 3 (BURTON) - ALLOWING MAJORITY
VOTER APPROVAL FOR SPECIAL TRANSPORTATION TAXES AND SCHOOL
BOND ISSUES
At the regular City Council meeting of April 13, 1999, the City Council requested that SCA 1
(O'Connell) and SCA 3 (Burton) be placed on the next agenda for Council consideration. The
measures, if approved by the Legislature, would place initiatives on a statewide ballot for voter
approval. Both bills would implement a Constitutional amendment allowing a majority vote (as
opposed to a 2,/3 majority) for additional transportation taxes and additional taxes to used for school
bond measures.
RECOMMENDATION:
Staff recommends that the City Council take no action. However, should the Council choose to state
a preference on this matter, it would be appropriate to authorize the Mayor to send the necessary
correspondence.
ccm.mo xi,ca rE
COUNCIL AGENDA
APR 2 71999
ITEM No. ^ A
AMENDED IN SENATE MARCH 2, 1999
Senate Constitutional Amendment No. 1
Introduced by Senator O'Connell
(Principal coauthor:Assembly Member Dutra)
(Coauthors: Senators Alpert, Baca, Bowen, C/resbro,
Figueroa, Johnston, Barnette, Perata, Speier, Soils, and
Vasconcellos)
(Coauthors: Assembly Members Aroner; Calderon, Davis,
Firebaugh, Honda, Jackson, Keeley, Kuehl, Lempert,
Papan, Mazzoni, Scott, Shelley, Steinberg, and Thomson)
December 7, 1998
Senate Constitutional Amendment No. I—A resolution to
propose to the people of the State of California an amendment
to the Constitution of the State, by amending Section 1 of
Article XIII A thereof, and by amending Section 18 of Article
XVI thereof, relating to school facilities financing.
LEGISLATIVE COUNSELS DIGEST
SCA ], as amended, O'Connell. School facilities: general
obligation bonds.
(I) The California Constitution limits ad valorem property
taxes to 1% of the full cash value of the property, except for
property taxes to pay the interest and redemption charges
either on indebtedness approved by the voters prior to July I,
1978. or on bonded indebtedness for the acquisition and
improvement of real property approved on or after July I,
1978. by 2/; of the voters voting on the proposition.
This measure v ould provide an exception from the
property tax limitation for properly taxes to pay the interest
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SCA 1 —S —
and redemption ch:uees on bonded indebtedness incurred by
a school district, county office of education, or community
college district for the construction, reconstruction, or
rehabilitation of school facilities, including the furnishing and
equipping thereof, or the acquisition of real property
therefor, approved by a majority of the voters voting on the
proposition. The measure would require for these purposes
that the bond proposition include particular provisions
relating to the use and implementation of the proceeds from
the sale of the bonds.
This measure would also provide that property taxes
imposed for bonded indebtedness incurred for school
facilities, indebtedness approved by the voters prior to July 1,
1978, or bonded indebtedness with a 2/3 voter approval after
that date for real property acquisition or improvement, are
not special taxes.
(2) The California Constitution prohibits various local
governmental entities. including school districts, from
incurring any indebtedness or liability that exceeds in any
year the income and revenue provided for that year without
the assent of 2/3 of the qualified electors of that entity, voting
at an election to be held for that purpose, except that the
approval of only a majority of the voters is required for the
approval of general obligation bonds to repair, reconstruct, or
replace public school buildings determined to be structurally
unsafe for school use.
This measure would require with respect to a school district,
county office of education, or community college district, the
approval of only a majority of the voters voting on the
proposition for the approval of general obligation bonds for
the construction, reconstruction, or rehabilitation of school
facilities, including the furnishing and equipping thereof, or
the acquisition of real property therefor. The measure would
require for these purposes that the bond proposition include
particular provisions relating to the use and implementation
of the proceeds from the sale of the bonds.
(3) This measure would provide that its provisions shall be
ab:mt(i :o r. .a_ P.1w8. 7, 222(/, statcv,59:.
prima, c.octior., and if not approved by the syness a: that
y:i.aw_ clec'o:,, the .acasu, r:c,ald v.-S.�dc
4s
-3 — SCA 1
prcr. inn ; rhsll L., submitted to the voters at the November
7, 2000. statewide general election.
Vote: 2/3. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
1 SECTION 1. Resolved by the Senate, the Assembly
2 concurring, That the Legislature of the State of California
3 at its 1999-2000 Regular Session commencing on the
4 seventh day of December 1998, two-thirds of the
5 membership of each house concurring, hereby proposes
6 to the people of the State of California that the
7 Constitution of the State be amended, as follows:
8 First—That Section 1 of Article XIII A thereof is
9 amended to read:
10 SECTION 1. (a) The maximum amount of any ad
11 valorem tax on real property shall not exceed I percent
12 of the full cash value of that property. The 1 percent tax
13 shall be collected by the counties and apportioned
14 according to la" to the local jurisdictions within the
15 counties.
16 (b) The limitation imposed by subdivision (a) shall not
17 apply to ad valorem taxes or special assessments to pay the
18 interest and redemption charges on any of the following:
19 (1) Indebtedness approved by the voters prior to July
20 1, 1978.
21 (2) Bonded indebtedness for the acquisition or
22 improvement of real property approved on or after July
23 1. 1978, by two-thirds of the votes cast on the proposition.
24 (3) Bonded indebtedness incurred by a school district,
25 county office of education, or community college district
26 for the construction, reconstruction, or rehabilitation of
27 school facilities, including the furnishing and equipping
28 of school facilities, or the acquisition of real property for
29 school facilities, approved by a majority of the voters of
30 the district or county, as appropriate, voting on the
31 proposition on or after the effective date of the measure
32 adding this paragraph. This paragraph shall apply only if
33 the proposition approved by the voters and resulting in
34 the bonded indebtedness includes all of the following:
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SCA 1 —4-
1 (A) A requirement that the proceeds from the sale of
2 the bonds be used only for capital expenditures, and not
3 for any other purpose, including school operations of
4 traiii., :agai4e1, and teacher and administrator salaries.
5 (B) A list of the specific school facilities projects to be
6 funded.
7 (C) A provision to establish a citizens' advisory
8 committee to review the expenditure of the funds
9 generated by the sale of the bonds.
10 (D) An annual audit of the proceeds from the sale of
11 the bonds until all of those proceeds have been expended
12 for the school facilities projects.
13 (c) An ad valorem tax levied pursuant to subdivision •
14 (b) may not be deemed a special tax for purposes of this
15 article.
16 (d) For purposes of this section "school facilities"
17 include community college district school facilities.
18 Second—That Section 1S of Article XVI thereof is
19 amended to read:
20 SEC. 18. (a) No county city, town, board of
21 education, or school district shall incur any indebtedness
22 or liability, in any manner or for any purpose, exceeding
23 in any year the income and revenue provided for that
24 year, unless both of the following conditions are met:
35 (1) The indebtedness or liability is approved by
26 two-thirds of the voters of the public entity voting at an
27 election to be held for that purpose, except that for any
28 public entity that is authorized to incur indebtedness for
29 public school purposes, any proposition for the
30 incurrence of indebtedness in the form of general
31 obligation bonds for the purpose of repairing,
32 reconstructing or replacing public school buildings
33 determined, in the manner prescribed by law, to be
34 structurally unsafe for school use, shall be adopted upon
35 the approval of a majority of the voters of the public
36 entity voting on the proposition at the election.
37 (2) Before or at the time of incurring the indebtedness
38 provision is made for the collection of an annual tax
39 sufficient to pay the interest on the indebtedness as it falls
40 due and to provide for a sinking fund for the payment of
4S
-5— SCA 1
I the principal thereof, on or before maturity, which shall
2 not exceed 40 years from the time of contracting the
3 indebtedness.
4 (b) When two or more propositions for incurring any
5 indebtedness or liability are submitted at the same
6 election, the votes cast for and against each proposition
7 shall be counted separately, and when two-thirds or a
8 majority of the voters, as the case may be, voting on any
9 one of those propositions, vote in favor thereof, the
]0 proposition shall be deemed adopted.
11 (c) Notwithstanding subdivision (a), on or after the
12 effective date of the measure adding this subdivision, in
13 the case of any school district, county office of education, -
14 or community college district, any proposition for the
15 incurrence of indebtedness in the form of general
16 obligation bonds for the construction, reconstruction, or
17 rehabilitation of school facilities, including the furnishing
18 and equipping of school facilities, or the acquisition of real
19 property for school facilities, shall be adopted upon the
20 approval of a majority of the voters of the district or
21 county, as appropriate, voting on the proposition at an
22 election. This subdivision shall apply only to a proposition
23 for the incurrence of indebtedness in the form of general
24 obligation bonds for the purposes specified in this
25 subdivision if the proposition includes all of the following:
26 (1) A requirement that the proceeds from the sale of
27 the bonds be used only for capital expenditures, and not
28 for any other purpose, including school operations er
29 _d.;i..:jtf.,nc.: and teacher and administrator salaries.
30 (2) A list of the specific school facilities projects to be
31 funded.
32 (3) A provision to establish a citizens' advisory
33 committee to review the expenditure of the funds
34 generated by the sale of the bonds.
35 (4) An annual audit of the proceeds from the sale of
36 the bonds until all of those proceeds have been expended
37 for the school facilities projects.
38 (d) For purposes of this section "school facilities"
39 includes community college district school facilities.
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SCA 7 — 6-
1 SEC. 2. RLsv,l'crf 5, th,. S.'nu' , d,.. A.,sc»t1,!1
3
8 I;rrt That Sccti u 1 of Article XIIIA :hereof i
9 cmendcd to read:
10 Section 1. (a) The maxim
12 of the fell sash value of that proper:). The--h—per..ant tax
15 _ou„Las'
16 (h) The. limitation impc:cd by :ebdici3ion (a) shall not
19 . .✓ _ .-_- i _ _ . ;,.
20
( 1.-991-87
22 imfrnertre„t of r.,..l property cpr.oced o=-er ate: Jd�
24 b3) Bended ..tdc`rt dura., incurred by a ,chool district,
25 aaun.f offoc c, education, or community collo., diat:ict
27 s_heol th.. T,tr„14.1,9g—antaluippierg
30 .hr district or roam.), appropri tea, voting on c'ro
31 p_ar..r1C .. 3.. or aft,: the a`fa.t:;a data of the roetar
33 the properi`-. _ ..d 88 . _ • .a._ --- _ -
34 . : caudad :.,dc' ..,... a - .:e. _ - .
36 .:_ c.: c - .
tert
37 r ,. _ . - , . • :
38 a - -sem,
39 i^) Afa: cr the specific : h:,ol f ciSlido-b
40 raadad.
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1 . . • t a advisory
2 comm: • - - _ . teee—of flit —math
3 eaters.ed by the:ale of thy beds.
4
7 (c) .An ad valorem Iasi lcsicd pursuant to subdivision
9 ..rL_le.
10 (d) For puniest.) of thin section ".,cheol f ciftios'
11 include c.m..,,un areell_ge distree: school facilities.
12 Second Tha: Section 18 of Article "A7 thereof i
13 amended to read:
14 SEC. IS. (a) No count), city, town, board of
IS education, or school district shall incur any indeb'edneas
17 i., an-5—re. r the :.,re,«.. ..,,d rar snit y.ovided for that
18 y-a, unless beth of the feIloss:,,, ,.e,.d;:;ons are,,.et
19 (I) The i-r,3eb:e-d,.cra or liability is ,rr,r,,,v..e ,,y=
20 :sro thirds of the voters of the public cat -ohne at an
2 -
26 .e_enperue:ice er r_p 3eing pub:h school budcli ,_
27 d_eeniayd, .., :he :canner prererib..d by Lw, to b_
28 ,::accurally unsafe for school use, shall be adopted upon
79 - _ - c -•-. .,
31 (d; Deer: or a: the : .. _ of , ,ocrrine the ,..debtedrrcc-
32 preyisica--is Mas: for :he collo ia- . , o... ..
33 - _ :eh:da033 as is f.11
34 dee and to provide for a sin15 s fu- re . .. .. _.-. -
•. c -_ : , .9 or before ,aa:ur:y; :.'16_h shall
37 i.debtedness.
38 (S) When ty or .co:a y.c csitiens fat-en—care tens
40 _.,,.a.... :be voter for and ataiadt each oroper-:ien
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SGA 1 - S -
1 sltal] be eount_d sepnratel , and tshen -two thirds--e—a
2 majority of the \.,tLPS, as :he tease may L,., \otinf, on—au}
3 : -
5 (,) Nons't htarrding subdivision (a), on or after the
7 the ease of any school district, county office of education,
17 for 3 a iooerra,_e of indeb.-dn_s:, in :he fo..,i of enera3
I8 ;.
21 the boads be Lei en',y for L..pilal a&pe rL3, and not
22 far any char pu,peee, inelu±np school operations or
23 adrain:stretio:.
24 (2) A ba: of the specific school Lcd;t;3 p:ej..ets to b-
25 rmiddi.
26 (3) A pre :rho,. ad ca:eb13h a -iaza..s' “eborseddj
.. • ._ - - -
28 - _ ..:..d b) :hc 3alc a;;he-bands.
29 ., .....-. _ :,. 4om the rale of
30 'Inc banis and', all of :hose proceeds have been cspcn4cd
31 for the school fae11i:;tea projcc.s.
1.- .- .-. •. .. .-
33 .. ... is •.- .,.. .. ,. .,. .•. . .-.. . �C.
34 S,:.C. 3.
35 SEC. 2. Notwithstanding any other provision of law,
36 the constitutional amendment proposed in Section 1 shall
37 be submitted to the voters at the '`4a-eh 7-1-11439 A'ovenzber
38 7, 2000, statewide primary election.
40 -fp.;: .. _ ..c_ _. . .. - arch 7, 200C, sta:_:ade
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. . -mcndment
2 propooed in Section 2 shall be submitted to the voters at
3 the Nenember 7, 2000, :tatoaide general election. If the
5 .:. . . . -- •. - . .. -
6 primary cicetlon, the constitutions amendment
8 herr.
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fit.{!..:,, t e';x4 jcil t Y Y.•l i'1' ,-',.i °tu r. e 4:24?-if x • ,a 41,, 1
'''-rr- . Senate C onshtuttonaI Am i vi . t , �x f 3•'N 3
4,9 fi •
J/ {.tA ...• ^iii I eve
.tT C �I� 1tzt� .z`ix iQ�'36� i4i �t�'( ?a *`, 'MSyr▪ a • rex r.^ {
"J Px .k1't,y'I- k i>f'r H"n'rF�9''Sv. id K▪a I > c
I 3 . .t x Introduced by Senators Burton and Karnette i L
-"z N'k.=z(Pnncipal coauthor Assembly Member Dutra) t:
Y,:::•‘:1't (Coauthors Senators Baca, Cosfa, Figueroa, and Speier) i < .:
" mi4 (Coautfiors AssemblyMembers;,Calderon Honda Kuehl '?
, Ma,_.,..4....-.-..s.-om MlgdenpfRtomrmero,,:Tortakson and Washmgt{on)� -04.'��' � :.,
�Y r'm."^ �a ,r -s.7.'a n *rsF 1P..ati sa "tit I _ .i
a si,�N -T �'-February 8 1999 ',,' 7 `' '� s-
S t nI r
i
.� Senate 'Conshtuhonal AmendmenC No -3=A resolution
propose to'the people o>;the State of California an amendment
_'to,tl e, Constihttton of the State by'addmg Section 16 to Article
>,X[ thereof i.,by ending` Section 4 of Article XIII A thereof
and by amending Section 2 of Article. XIIIC thereof relatmg} •
.--:.r-"i6-taxation _'
LEGISIATNE COUNSELS DIGEST .Y I • r a
f SCA 3 asintroduced P1.091?::.).,.Local governntmespecial
taxes:•transportation , `--
The ,California Constitution requires a ;2/3 vote• of the .
ectorate:.for approval' of special°taxes of
ela city,,,bounty, of .
' .special !district; • not;including '.-ad valorem- taxes on.: real
'property or.-a transaction or sales.tax on< the sale of, real
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'a Thiserty.measure_ would amend the Constitutionto provide that
a local,jurisdiction, as'defined, by a majorityvote of its voters
', _voting on the proposition, may impose a special tax, if the tax
is imposed exclusively fo fund projects and services: for the
purpose of transportation,as provided.
Vote: , 2/3. . Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
99
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,�I � : � i r a a > .e' ,,t er e 6 �smi is X t , i B
$ 1, t@,'f Resolved by the Senate the •Ass?inb4 concurring, Thal Q<
�2 the Legtslafure . ee-?- : taliel paLforiva"atxi 999 r2000.� 1�
j�I- 'r 3'rR'WeS01'C.Sestont41,3 menctnglton (e seventh dayf, ofLLt
�,i? ,�vL h.� - lot �e +-n` .+rs v sv• ;+r- r.-- r Ste!ft
.:',..,,,c$1.-4,-.4,57411011 ,-
ia4'' Decemberst.1998,ftwothirds `of the membership of each.
I
'c Y Yf tF t NM ri e o es :a. 'r.'k. .�-'
a„5 khouse concurring, hereb proposes to' thetpeople of th,,V
ik..'i(t t7 amendedasfollows tea[ Cet stttu of the S--a[elli`e'fPY ,
i �r ik
� t4b',.-4,6-Sts/ '8 a Fust That SechonlTh 6 rs added ,-,el• icle XI thereof tor` T r:
.1' 9 read ` j r-t l `Y�.1 x+,kv r"3� ``rc' a � •v .. st� a } ,�
,10 SEC ,�1'."--- Notwrthstandingt an anther -11rft ,4.7, s x' > .
I` ,#",�11.7 law3 a�lo�ai-1 trdtrttotrvkby airmajoniy r.v `e ofttls1yotets ''r ,
r ^12, vofuig on,t}i pro posmon "may1rmpose y special tax that.
r 134:_rt,r} otherwise authoruzd bylaw oto impose eprovided than
f(r..,.c,a14 the special, tax3is imposed exciusively toyfund p�rolects nd:; ,
a �*15riservices for;the purpose;of transportatron'� ;tp,;ic h ` ;
�� d. 16 (b) For purposes of this section i , t - ;'�' ' '
r' • 17 (1)> Local lunsdrction," mcludest but is▪not limited€to;dil'
.e a '� as +n+ s -�
It :: r 18 a;city countyt,ori special district,torja local igovernmenti'G�y. it _
II ` x"„�19 r_defined bys tse,.osion.(b of Sechon;1 of Article XIII C .,,;a .rs” ,
d .;1 20i-n's�(2) The funding` ofprolects includes,�theservicmg of; M ,
r . proetednessrissytied forethe ipurpose" o funding those; �ir-;
.1 :',9L
4,1-:4'.:4,4.2:1 (94,-.-g-i,
3 }(c)Ins np__ event sh llsh,this"sechon• nba construed to-ia 1,
II 1 . 24 authorize a local' jurisdiction to impose 'within.±:7;1`0:4=4::::3,. .;J;':
its
,j 1 25f b ndartes an 1 ad valorem 'tax' on'reab p,operTy or a' y l
26 transaction tax or sales taxon the sale of real property ' �_ J-
27 • econd ._That Section- 4 of Article XIII A: thereof rs-
28 amended tread ;- ' + v ,, .
29:-. �,.S�ecnon 4r,`- Cines Countie Frrept as provided; by ,
30 -Section 16'.of ArticleXI canes, countaes, and special"
+ fl districts, b9 a twothirds:vote 'of the qualified 'electors of=' ''
32.-,.;,,m-.‘6'
2 i:'uch district`their,voters voting ori. the, proposition, may ..
33"` impose special taxes on seek the :respective city ,county,
Id/'or. district, except ad valorem taxes'.on real property 9.17:.... .:::
r a' - ll
3a ' transaction tax or "sales'fax on the:sale of_real property. .. 'J
36 within such -City; Counts the respective city,}'county, or :
37,. special-district -
38..- Third-That Section: 2 of Article XIII C thereof is
39 amended to read: .. -
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-3 SCA 3
1 . SEC 2. « Local Government - Tax Limitation.
2 Notwithstanding any other provision of this Constitution:
3 .-? (a),All taxes imposed by any local government shall be
• ,4 deemed to be either general taxes Or special taxes. Special
5 IT,purpose districts or :agencies, including school districts,
. . 6 shall have nopower to levy general taxes.
7 `' .(b) Nolocal government, may impose, extend, or
▪ 8. increase any general taxunlessand until that tax is
/ % 9 submitted to'the electorate and approved by a,majority
10 vote A general tax shall not bedeemed to have been '
11-. increased- if it is' imposed at a rate not higher than the
12 maximum rate so approved. The election,required by this
13 ` subdivision 's shall be consolidated--with - a ; regularly
• 14 scheduled general election for members of the governing
15 ;body of :the.:local government,' -except in cases of
16 emergency declared by a 'unanimous vote of the
-:17 governing bodyF
18 (c),Any general tax imposed; extended, or increased,
19 without voter:. approval, by any local government on or
20 after January 1, 1995, and prior to the effective date of this
21 article, shall continue to beimposed only if approved by
22 a majority vote of the voters voting in anelection on the
23 issue of the imposition, whichelection"shall be held within
24 two years of the 'effective date of this articleand in
25 compliance with subdivision (b).
1 26 (d) No Except as provided by Section 16 of Article XI,
27 local government may not impose, extend, or increase
28 any special tax unless and until that tax is submitted to the
29 electorate and approved by a two-thirds vote. A special
30 tax shall not be deemed to have been increased if it is
31. imposed at-a rate not higher than the' maximum rate so _
32 . approved: - -
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