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BILL NUMBER: SCA 5 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 21, 2007
INTRODUCED BY Senator McClintock
( Coauthors: Senators
Aanestad, Harman, and Wyland )
( Coauthors: Assembly Members
Benoit, DeVore, Gaines,
Garrick, Jeffries, Nakanishi, and
Strickland )
JANUARY 30, 2007
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section 8
of Article IV thereof, by amending Section 3 of Article XIII A
thereof, by amending Sections 1 and 2 and the heading of, and by
addinq Section 9 to, Article XIII C thereof, and by amending Section
3 of Article XIII D thereof, relating to government finance.
LEGISLATIVE COUNSEL'S DIGEST
SCA 5, as amended, McClintock. State and local qovernment finance:
�Le�e�-a���e3zal taxes: voter approval.
The California Constitution defines, for purposes of local
taxation, a "general tax" as a tax imposed for general governmental
purposes and a "special tax" as a tax imposed for specific purposes.
This measure would establish, for purposes of both state and local
taxation, a constitutional definition of a "tax" as any monetary
exaction imposed by a governmental entity, as defined, but would
exclude from this definition monetary exactions that meet certain
criteria. This measure would also recast the definition of a "special
tax" as a tax whose revenues are required by law to be expended for
a specific purpose or purposes.
The California Constitution conditions the imposition of a change
in state taxes enacted for the purpose of increasing revenues upon
the approval of 2/3 of the membership of each house of the
Legislature. The California Constitution conditions the imposition,
extension, or increase of a general tax by a city or county upon the
approval of a majority of the voters of the city or county voting on
the tax. The California Constitution also conditions the imposition,
extension, or increase of a special tax by a local government, as
defined, upon the approval of a 2/3 majority of the voters of the
local government voting on the tax, except in the case of certain
taxes imposed by certain school entities.
This measure would ^� ,{�^� �_^ , �nn-,
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condition the imposition by the state or a local government
of a new tax, or a change in a tax, that increases the amount of any
tax levied upon any taxpayer upon the approval of 2/3 of the
membership of the governmental entity's governing body, as specified,
and upon voter approval, as specified, except in the case of
taxes that qenerate less than $0. 10 per capita and certain
taxes imposed by certain school entities. This measure would also
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prohibit a qovernmental entity, as defined, �c
�a� that, without voter approval, imposed a new tax or
a change in tax on or after January 1, 2007, and before the
effective date of the measure, from continuing to Ievy that tax
or change in tax unless it obtains voter approval of the imposition
at the next election.
This measure would exclude from this prohibition a tax that was
imposed to repay bonded indebtedness that was incurred during that
period, and a tax imposed during
that same period that is estimated to generate less than 50. 10 per
capita . This measure would also authorize a qovernmental
entity to impose a new special tax or an increase in an existing
special tax to address an emergency proclaimed by the
Governor without voter approval if the tax is approved by a
4/5 vote of the entity's governinq body, but would
condition the continued collection of that tax or increase in tax
after the next election upon 2/3 voter approval
at that election. This measure would also authorize individual
or class actions to challenge a monetary exaction, and would require
a governmental entity to bear the burden of proof in such an action,
as provided.
This measure would make conforming changes to related provisions.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
Resolved by the Senate, the Assembly concurrinq, That the
Legislature of the State of California at its 2007-08 Regular Session
commencinq on the fourth day of December 2006, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, that the Constitution of the State be
amended as follows:
First-- That Section 8 of Article IV thereof is amended to read:
SEC. 8. (a) At regular sessions no bill other than the budget
bill may be heard or acted on by committee or either house until the
31st day after the bill is introduced unless the house dispenses with
this requirement by rollcall vote entered in the journal, three
fourths of the membership concurring.
(b) The Legislature may make no law except by statute and may
enact no statute except by bill. No bill may be passed unless it is
read by title on 3 days in each house except that the house may
dispense with this requirement by rollcall vote entered in the
journal, two thirds of the membership concurring. No bill may be
passed until the bill with amendments has been printed and
distributed to the members. No bill may be passed unless, by rollcall
vote entered in the journal, a majority of the membership of each
house concurs.
(c) (1) Except as provided in paragraphs (2) and (3) of this
subdivision, a statute enacted at a regular session shall go into
effect on January 1 next following a 90-day period from the date of
enactment of the statute and a statute enacted at a special session
shall go into effect on the 91st day after adjournment of the special
session at which the bill was passed.
(2) A statute, other than a statute establishing or changing
boundaries of any legislative, congressional, or other election
district, enacted by a bill passed by the Legislature on or before
the date the Legislature adjourns for a joint recess to reconvene in
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the second calendar year of the biennium of the legislative session,
and in the possession of the Governor after that date, shall go into
effect on January 1 next following the enactment date of the statute
unless, before January 1, a copy of a referendum petition affecting
the statute is submitted to the Attorney General pursuant to
subdivision (d) of Section 10 of Article II, in which event the
statute shall go into effect on the 91st day after the enactment date
unless the petition has been presented to the Secretary of State
pursuant to subdivision (b) of Section 9 of Article II.
(3) Statutes calling elections, statutes providing for
appropriations for the usual current expenses of the State, urgency
statutes and, except as otherwise required by Article XIII C,
statutes providing for tax levies shall go into effect immediately
upon their enactment.
(d) Urgency statutes are those necessary for immediate
preservation of the public peace, health, or safety. A statement of
facts constituting the necessity shall be set forth in one section of
the bill. In each house the section and the bill shall be passed
separately, each by ro11ca11 vote entered in the journal, two thirds
of the membership concurring. An urgency statute may not create or
abolish any office or change the salary, term, or duties of any
office, or grant any franchise or special privilege, or create any
vested rightlor interest.
Second-- That Section 3 of Article XIII A thereof is amended to
read:
Section 3. On and after June 7, 1978, the State shall not
impose, extend, or increase either of the following:
(a) New ad valorem taxes on real property.
(b) Sales or transaction taxes on the sales of real property.
Third-- That the heading of Article XIII C thereof is amended to
read:
ARTICLE XIII C
VOTER APPROVAL FOR TAX LEVIES
Fourth-- That Section 1 of Article XIII C thereof is amended to
read:
SECTION 1. Definitions. As used in this Constitution:
(a) "General tax" means any tax imposed for general governmental
purposes.
(b) "Governmental entity" means the State or a local government .
(c) "Local government" means any county, city, city and county,
including a charter city or county, any special district, or any
other local or regional governmental entity.
(d) "Special district" means an agency of the State, formed
pursuant to general law or a special act, for the local performance
of governmental or proprietary functions with limited geographic
boundaries including, but not limited to, school districts and
redevelopment agencies.
(e) "Special tax" means a tax, the revenues from which are
required by law to be expended for a specific purpose or purposes,
including a tax imposed for a specific purpose or purposes, the
revenues from which are placed into a general fund.
(f) "Tax" means any monetary exaction imposed by a governmental
entity, except for any of the following:
(1) A monetary exaction imposed by a governmental entity, if all
of the following conditions are met:
(A) The exaction is in exchange for goods or services voluntarily
requested by the payer of the exaction.
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(B) The revenues derived from the exaction are used solely to
provide the requested goods or services.
(C) The amount of the exaction does not exceed the actual cost of
providing the goods or services to the payer.
(D) Payment of the exaction is not a condition of receivinq a
decision, a privilege, or permission from any governmental entity.
(2) Fines and penalties imposed by the jvdicial branch
(3) A monetary exaction in the form of a fee for a license that is
required to engage in a trade or business, if that license fee meets
both of the following conditions:
(A) The revenues from the license fee are used solely to regulate
the trade or business to which the license pertains.
(B) The amount of the license fee does not exceed that portion of
the actual cost of regulating the trade or business to which the
license pertains that is reasonably attributable to the licensee.
(4) An assessment, or fee or charge, as defined by Article XIII D.
Fifth-- That Section 2 of Article XIII C thereof is amended to
read:
SEC. 2. Notwithstanding any other provision of this
Constitution:
(a) A tax imposed by a governmental entity is either a general tax
or a special tax. A special purpose district or agency, including a
school district, does not have the authority to levy a general tax.
E`'� e' ��� an�i �ftcr .Z�nu�r.Tl, 2QLL7, ar�3,
(b) (1) Except as
otherwise provided in paraqraphs (2) and (3) , any new tax
or any change in any tax enacted or authorized by a
governmental entity that increases the amount of any tax levied upon
any taxpayer, including, but not limited to, the imposition of a new
tax, an increase in the rate of a tax, a change in the method of
computation of a tax, or a change in the taxpayers subject to a tax,
shall not be imposed unless all of the following conditions are met:
(A) The � ��^
proposed tax or chan ge in tax is approved by
two-thirds of the membership of *'�^ ,^^' ; ^,�^' ^
either of the following:
(i) In the case of the State, each house of the Legislature.
(ii) In the case of a local government, the governing body of the
local government.
(B) (i) The
proposed tax or change in tax is svbmitted to the electorate of
the governmental entity at an election and is approved by voters in
accordance with the applicable of the followinq:
��
(I) In the case of a general tax, by a
majority vote of the voters voting on the measure.
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(II) In the case of a special tax, by a
two-thirds vote of the voters voting on the measure.
(ii) Clayse (i) does not apply to a tax or change in tax that is
estimated to annually qenerate less than ten cents ($0. 10) per capita
based on the total po,oulation of the imposing qovernmental entity,
as that population was most recently estimated by the Department of
Firance as of the calendar year immediately precedinq the date upon
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which the imposition of the tax or chanqe in tax is approved by the
governing body of the imposing entity.
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(2) Paragraph (1) does not apply to ad valorem taxes to pay the
interest and redemption charges on bonded indebtedness described in
paragraph (3) of subdivision (b) of Section 1 of Article XIII A and
in subdivision (c) of Section 1 of Article XIII A.
(3) (A) If the Governor proclaims an emergency under the Emergency
Services Act set forth in Chapter 7 (commencing with Section 8550)
of Division 2 of Title 2 of the Government Code, or any svccessor to
that act, a qovernmental entity with jurisdiction over an area in
which that emergency was proclaimed may imPose either a new special
tax or a change in an existing special tax that increases the amount
of tax levied upon a taxpayer, that is levied until and includinq the
day of the next regularly scheduled election of the imposing
qovernmental entity, if the tax or change in tax is to be imposed for
the exclusive purpose of addressinq the causes or effects of the
emergency and is approved by four-fifths of the membership of either
of the following:
(i) In the case of the State, each house of the Legislature.
(ii) In the case of a local government, the governinq body of the
local government.
(B) A qovernmental entity may levy a tax or change in tax imposed
in accordance with subparagraph (A) on and after the day immediately
followinq the election described in subparaqraph (A) , if that tax or
change in tax is submitted to the electorate of the governmental
entity at that election and is approved by a two-thirds vote of the
voters voting on the issue.
(c) (1) Except as otherwise provided in paragraph (2) , a new tax
or a change in tax that is imposed on or after January 1, 2007, and
before the effective date of the measure adding this subdivision,
without the voter approval as prescri�bed in subparagraph (B) of
paragraph (1) of subdivision (b) , sha11 cease to be levied beginninq
on the day after the next reqularly scheduled election held by the
imposing governmental entity, unless the new tax or change in tax is
placed on the ballot of that next election and receives the
applicable voter approval as prescribed in subparagraph (e) of
paragraph (1) of subdivision (b) .
(2) Paragraph (1) does not apply to either of the following:
(A) Any tax imposed exclusively to pay the principal and interest
on bonded indebtedness that was incurred on or after January 1, 2007,
and before the effective date of the measure adding this
subparagraph.
(B) A tax or change in tax described in clause (ii) of
subparagraph (B) of paragraph (1) of subdivision (b) .
(d) If more than one tax or change in tax that requires the same
threshold for voter approval is submitted to the statewide or a 1oca1
electorate at the same election, those taxes or changes in taxes
shall be placed on the ballot for that election as a sinqle question.
l"�T!'�T
(e) Any general tax imposed, extended, or
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increased, without voter approval, by any local government on or
after January 1, 1995, and prior to November 6, 1996, shall continue
to be imposed only if approved by a majority vote of the voters
voting in an election on the issue of the imposition, which election
is held no later than November 6, 1998, and in compliance with
subdivision (b) .
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(f) The amount of tax levied upon a taxpayer is not
deemed to have been increased if it is levied at a rate not higher
than the maximum rate approved in compliance with the requirements of
this Constitution as it read on the date that maximum rate was so
approved. •
Sixth-- That Section 4 is added to Article XIII C thereof, to
read:
SEC. 4 . (a) Subject to Section 32 of Article XIII, any person,
entity, or class of persons or entities that is liable for payment
of a monetary exaction imposed by a governmental entity may maintain
a leqal or equitable action in a court of competent jurisdiction to
invalidate that monetary exaction on the basis that the exaction, or
the manner in which it was imposed, does not conform to the
requirements of law.
(b) In any action described in subdivision (a) , the governmental
entity that imposed the monetary exaction shall bear the burden of
proof to demonstrate that the monetary exaction, or the manner in
which it was imposed, conforms to the requirements of law.
Seventh-- That Section 3 of Article XIII D thereof is amended to
read:
SEC. 3. (a) An agency shall not assess a tax, assessment, fee,
or charge upon any parcel of property or upon any person as an
incident of property ownership except:
(1) The ad valorem property tax imposed pursuant to Article XIII
and Article XIII A.
(2) A special tax receiving a two-thirds or 55 percent vote, as
applicable, pursuant to Section 1 or 4 of Article XIII A or
subdivision (b) or (c) of Section 2 of Article XIII C.
(3) Assessments as provided by this article.
(9) Fees or charges for property related services as provided by
this article.
(b) For purposes of this article, fees for the provision of
electrical or gas service shall not be deemed charges or fees imposed
as an incident of property ownership.
Eighth-- The provisions of this measure shall be liberally
construed to effectuate its purpose of providing a comprehensive
definition of the term "tax" that includes the broadest possible
range of governmental monetary exactions, unless expressly exempted.
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