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HomeMy WebLinkAboutACA 19 - Mayes - Amnd Sec 1 and 2 Relating to Local Gvrnmnt STAFF REPORT CITY OF PALM DESERT ADMINISTRATIVE SERVICES DEPARTMENT MEETING DATE: April 12, 2018 PREPARED BY: Stephen Y. Aryan, Risk Manager REQUEST: Consideration to approve a letter of opposition for ACA 19 (Mayes)- 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 2 of Article XIII C thereof, relating to local government. Recommendation By Minute Motion, approve a letter of opposition for ACA 19 (Mayes). Committee Recommendation The Palm Desert Legislative Review Committee recommended submitting a letter of opposition for this bill. Strategic Plan This item is not associated with any identifiable objective within the Palm Desert Strategic Plan. Background Analysis The California Constitution conditions the imposition of a general tax by a local government upon the approval of a majority of its voters voting on the tax. It requires the election for the vote on a general tax be consolidated with a regularly scheduled election for members of the governing body of the local government (except in cases where a local government unanimously declares an emergency). The Constitution further conditions the imposition of a special tax upon the approval of two-thirds of the voters voting on the tax. "Local government" is defined as any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity. If approved, ACA-19 (Mayes) would specify that the electorate exercising its initiative power be within the definition of "local government," thereby requiring voter consideration of electorate driven initiatives only during a regularly scheduled election for members of the local government's governing body. The Legislative Review Committee recommends opposition to this bill because it infringes upon local control. April 12, 2018 - Staff Report ACA-19 (Mayes) Opposition Letter Page 2 of 2 Fiscal Analysis The City's opposition of ACA-19 (Mayes) has no fiscal impact. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A N/A Robert W. Hargreaves Lori am Janet Moore Lauri Aylaian City Attorney Director of Administrative Services Director of Finance City Manager ATTACHMENT: ACA-19 (Mayes) as introduced on September 6, 2017 Draft Letter of Opposition for ACA-19 (Mayes) CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION Assembly Constitutional Amendment No. 19 Introduced by Assembly Member Mayes (Coauthors:Assembly Members Baker,Mathis, and Obernolte) September 6, 2017 Assembly Constitutional Amendment No. 19—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 2 of Article XIII C thereof,relating to local government. LEGISLATIVE COUNSEL'S DIGEST ACA 19, as introduced, Mayes. Local government taxation: voter approval. The California Constitution conditions the imposition of a general tax by a local government upon the approval of a majority of its voters voting on the tax. The California Constitution requires the election for the vote on a general tax to be consolidated with a regularly scheduled election for members of the governing body of the local government, except in cases where the members of the governing body of the local government,by a unanimous vote,declare an emergency.The California Constitution conditions the imposition of a special tax by a local government upon the approval of zi,of the voters voting on the tax.The California Constitution defines "local government" for these purposes to mean any county, city, city and county, including a charter city or county,any special district,or any other local or regional governmental entity. This measure would specify that the electorate exercising its initiative power is within the definition of"local government" 99 ACA19 —2— Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated local program: no. 1 Resolved by the Assembly, the Senate concurring, That the 2 Legislature of the State of California at its 2017-18 commencing 3 on the fifth day of December 2016,two-thirds of the membership 4 of each house concurring, hereby proposes to the people of the 5 State of California, that the Constitution of the State be amended 6 as follows: 7 First—That Section 1 of Article XIII C thereof is amended to 8 read: 9 SECTION 1. Definitions. As used in this article: 10 (a) "General tax" means any tax imposed for general 11 governmental purposes. 12 (b) "Local government"means any county,city,city and county, 13 including a charter city or county,any special district,or any other 14 local or regional governmental entity. "Local government"includes 15 the electorate exercising its initiative power. 16 (c) "Special district" means an agency of the State, formed 17 pursuant to general law or a special act, for the local performance 18 of governmental or proprietary functions with limited geographic 19 boundaries including, but not limited to, school districts and 20 redevelopment agencies. 21 (d) "Special tax"means any tax imposed for specific purposes, 22 including a tax imposed for specific purposes,which is placed into 23 a general fund. 24 (e) As used in this article, "tax" means any levy, charge, or 25 exaction of any kind imposed by a local government, except the 26 following: 27 (1) A charge imposed for a specific benefit conferred or privilege 28 granted directly to the payor that is not provided to those not 29 charged, and which does not exceed the reasonable costs to the 30 local government of conferring the benefit or granting the privilege. 31 (2) A charge imposed for a specific government service or 32 product provided directly to the payor that is not provided to those 33 not charged, and which does not exceed the reasonable costs to 34 the local government of providing the service or product. 35 (3) A charge imposed for the reasonable regulatory costs to a 36 local government for issuing licenses and permits, performing 37 investigations, inspections, and audits, enforcing agricultural 99 -3— ACA 19 1 marketing orders, and the administrative enforcement and 2 adjudication thereof. 3 (4) A charge imposed for entrance to or use of local government 4 property, or the purchase, rental, or lease of local government 5 property. 6 (5) A fine, penalty, or other monetary charge imposed by the 7 judicial branch of government or a local government, as a result 8 of a violation of law. 9 (6) A charge imposed as a condition of property development. 10 (7) Assessments and property-related fees imposed in 11 accordance with the provisions of Article XIII D. 12 The local government bears the burden of proving by a 13 preponderance of the evidence that a levy,charge,or other exaction 14 is not a tax, that the amount is no more than necessary to cover 15 the reasonable costs of the governmental activity, and that the 16 manner in which those costs are allocated to a payor bear a fair or 17 reasonable relationship to the payor's burdens on, or benefits 18 received from,the governmental activity. 19 Second—That Section 2 of Article XIII C thereof is amended 20 to read: 21 SEC.2. Local Government Tax Limitation. Notwithstanding 22 any other provision of this Constitution: 23 (a) All taxes A tax imposed by any local government shall be 24 25 , 26 to levy general taxes. is either a general tax or a special tax. A 27 special district or agency, including a school district, has no 28 authority to levy a general tax. 29 (b) No-A local government may shall not impose, extend, or 30 increase any general tax unless and until that tax is submitted to 31 the electorate and approved by a majority vote.A general tax-shall 32 is not-be deemed to have been increased if it is imposed at a rate 33 not higher than the maximum rate so approved. The election 34 required by this subdivision shall be consolidated with a regularly 35 scheduled general election for members of the governing body of 36 the local government, except in cases of emergency declared by 37 a unanimous vote of the governing body. 38 (c) Any general tax imposed, extended, or increased, without 39 voter approval, by any local government on or after January 1, 40 1995,and prior to the effective date of this article,shall November 99 ACA 19 —4- 1 6, 1996, may continue to be imposed only if approved by a majority 2 vote of the voters voting in an election on the issue of the 3 imposition, which election-shall-be-lielel-within-two-years-of-the 4 cffcctivc datc of this article is held no later than November 6, 1998, 5 and in compliance with subdivision(b). 6 (d) Ne-A local government may shall not impose, extend, or 7 increase any special tax unless and until that tax is submitted to 8 the electorate and approved by a two-thirds vote. A special tax 9 shams is not deemed to have been increased if it is imposed 10 at a rate not higher than the maximum rate so approved. For 11 purposes of this subdivision, "local government" includes the 12 electorate exercising its initiative power. 0 99 Do AFT April 12, 2018 The Honorable Chad Mayes California State Assembly State Capitol, Suite 4098 Sacramento, CA 94249 RE: ACA-19 (Mayes). Local government taxation: voter approval. Notice of Opposition (As introduced 09/06/17) Dear Assembly Member Mayes: On behalf of the City of Palm Desert, I want to voice our opposition to your ACA-19 (Mayes), which specifies that the electorate exercising its initiative power be within the definition of "local government." The City of Palm Desert historically champions finding local solutions for local problems. Requiring consideration of electorate driven initiatives only during a regularly scheduled election infringes upon local control. For this reason, the City of Palm Desert opposes ACA 19. Sincerely, SABBY JONATHAN MAYOR cc: City Council The Honorable Jeff Stone, California State Senate Anthony ❑. Gonsalves, Joe A. Gonsalves & Sons (gonsalves@clonsalvi.com) Erin Sasse, League of California Cities (esasse@cacities.orq) Lauri Aylaian, City Manager Janet Moore, Director of Finance/City Treasurer Stephen Y. Aryan, Risk Manager