SR-012208-13El~ ® JAN 2 2 2008
FEUER INTRODUCES CONSTITUTIONAL AMENDMENT TO
LOWER BOND THRESHOLD FOR TRANSPORTATION FUNDS
Amendment will allow locals to control their own transportation destinies.
January 8, 2008 (Sacramento) Assemblyman Mike Feuer introduced ACA 10, a constitutional
amendment which would lower the vote threshold for the approval of bonds for local transportation
projects from atwo-thirds vote of the people to a 55% vote of the people modeled after Proposition 39
from 2000 for the education bonds.
"Los Angeles and every other region of our state desperately need to improve our transportation
infrastructure. That is why I am introducing this constitutional amendment and other companion bills
to promote local control of our transportation future." said Feuer. "The State fiscal crisis can not
consign cities and counties to be perpetually gridlocked."
Assemblyman Mike Feuer was elected to the California State Assembly to represent the 42nd
Assembly District, which includes all or part of the Los Angeles communities of Sherman Oaks,
Studio City, North Hollywood, Valley Glen, Valley Village, Toluca Lake, Universal City, Griffith
Park, Brentwood, Bel Air, Hohnby Hills, Beverly Glen, Westwood, Century City, Hollywood,
Fairfax, Hancock Park, Los Feliz, as well as the Cities of Beverly Hills and West Hollywood.
Capitol Office: State Capitol, P.O. Box 942849 • Sacramento, CA 94249-1H142 • (916) 319-2042 • Fax: (916) 319-2142
E-Mail: Assemblvmember.Feuer(alassem6ly ca gov E 3~
42nd Assembly DistrictWeb Site: http:/ldemocrats.assembiy.ca.gov/members/a42
JAN 2 2 2008
FOR IMMEDIATE RELEASE Contact: Rebecca Mazcus 916-319-2Q42
ACA 10 Assembly Constitutional Amendment -INTRODUCED Page 1 of 5
BILL NUMBER: ACA 10 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Feuer
JANUARY 7, 2008
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Sections 1
and 4 0£ Article XIII A thereof, by amending Section 2 of Article
XIII C thereof, and by amending Section 18 of Article XVI thereof,
relating to bonded indebtedness.
LEGISLATIVE COUNSEL'S DIGEST
ACA 10, as introduced, Feuer. Bonded indebtedness: local
government: transportation infrastructure.
(1) The California Constitution prohibits any ad valorem tax on
real property from exceeding 1~ of the full cash value of the
property, subject to certain exceptions.
This measure would create an additional exception to the 1$ limit
on ad valorem tax on real property for a city, county, or city and
county to pay for bonded indebtedness, incurred to fund specified
transportation infrastructure, that is approved by 55& of the voters
of the city, county, or city and county, as appropriate.
(2) Under the California Constitution, except as otherwise
provided with respect to school entities, a local government may not
impose, extend, or increase any special tax unless that tax is
submitted to the electorate and approved by a 2/3 vote o£ the voters
voting on the measure.
Thi smeasure would lower to 55~ the voter approval threshold for a
city, county, or city and county to impose, extend, or increase any
special tax for the purpose of paying the principal, interest, and
redemption charges on bonded indebtedness incurred to fund specified
transportation infrastructure.
(3) The California Constitution prohibits a city or county from
incurring any indebtedness exceeding in one year the income and
revenue provided in that year, without the assent of 2/3 of the
voters and subject to other conditions.
This measure would lower to 55$ the voter approval threshold for a
city, county, or city and county to incur bonded indebtedness,
exceeding in one year the income and revenue provided in that year,
that is in the form of general obligation bonds to fund specified
transportation infrastructure.
(4) This measure would also make technical, nonsubstantive
changes.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2007-08 Regular Session
commencing 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
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ACA 10 Assembly Constitutional Amendment -INTRODUCED Page 2 of 5
amended as follows:
First-- That Section 1 of Article XIII A thereof is amended to
read:
SECTION 1. (a) The maximum amount of any ad valorem tax on
real property shall not exceed ~a~ 1
percent --(.l~-)- of the full cash value of
ruck- that property. The -cae
1 percent -Fly tax -te
sha21 be collected by the counties and
apportioned according to law to the districts within the counties.
(b) The limitation provided for in subdivision (a) shall not apply
to ad valorem taxesor special assessments to pay the interest and
redemption charges on any of the following;
(1) Indebtedness approved by the voters prior to July 1, 1978.
(2) Bonded indebtedness for the acquisition or improvement of real
property approved on or after July 1, 1978, by two-thirds of the
votes cast by the voters voting on the proposition.
(3) Bonded indebtedness incurred by a school district, community
college district, or county office of education for the construction,
reconstruction, rehabilitation, or replacement of school facilities,
including the furnishing and equipping of school facilities, or the
acquisition or lease of real property for school facilities, approved
by 55 percent of the voters of the district or county, as
appropriate, voting on the proposition on or after the effective date
of the measure adding this paragraph. This paragraph shall apply
only if the proposition approved by the voters and resulting in the
bonded indebtedness includes all of the following accountability
requirement r.
(A) A requirement that the proceeds from the sale of the bonds be
used only for the purposes specified in Article XIII A, Section 1(b)
(3), and not for any other purpose, including teacher and
administrator salaries and other school operating expenses.
(B) A list of the specific school facilities projects to be funded
and certification that the school district board, community college
board, or county o£f ice of education has evaluated safety, class size
reduction, and information technology needs in developing that list.
(C) A requirement that the school district board, community
college board, or county office of education conduct an annual,
independent performance audit to ensure that the funds have been
expended only on the specific projects listed.
(D) A requirement that the school district board, community
college board, orcounty office of education conduct an annual,
independent financial audit of the proceeds from the sale of the
bonds until all of those proceeds have been expended for the school
facilities projects.
(4) Bonded indebtedness incurred by a city, county, or city and
county to fund the construction, reconstruction, rehabilitation, or
replacement of transportation infrastructure, approved by 55 percent
of the voters of the city, county, or city and county, as
appropriate, voting on the proposition on or after the effective date
of the measure adding this paragraph.
(c) Notwithstanding any other provisions of law or of this
Constitution, a school ~'^'-'^'--
district community college icksr-aad
district, county ^FPJ^^^ office
o£ education city, county, or city and county may
levy a 55 percent vote ad valorem tax pursuant to subdivision (b).
Second-- Shat Section 4 of Article XIII A thereof is amended to
read:
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ACA ] 0 Assembly Constitutional Amendment - IN'f12ODUCED Page 3 of 5
SEC. 4.
Except as otherwise provided by Section 2 of Article
XIII C, a city, county, or special district by a two-thirds
vote of
its voters voting on the proposition may impose
a special tax within that city,
county, or special district, except an ad valorem
~aaw~ tax on real property or a
~saacactica- transactions tax or sales
tax on the sale of real property within. ~^''
that city, county, or special district.
Third-- That Section 2 of Article XIII C thereof is amended to
read:
SEC. 2.
- Notwithstanding any other provision of this
Constitution:
(a) °"-~.~.-:a..~° A tax imposed by any
local government is
either a general ~axcc- tax
or a special ~axss- tax
A special
district or ~geusa.es- agency ,
including a school -disL~ictc
district ^''^" '"^° has no
-pewas- authority to levy a
general -taxes- tax
(b) -ATe- A local government
+~t shall not impose, extend, or increase any
general tax unless and until that tax is submitted to the electorate
and approved by a majority vote of its voters voting on the
proposition A general tax ^'^," is
not -lae- deemed to have been increased if it
is imposed at a rate not higher than the maximum rate for that
tax that was previously so approved. The election required by
this subdivision shall be consolidated with a regularly scheduled
general election for members of the governing body of the local
government, except in cases of emergency declared by a unanimous vote
of the governing body.
(c) Any general tax imposed, extended, or increased, without voter
approval, by any local government on or after January 1, 1995, and
prior to the effective date of this article, shall continue to be
imposed only if that general tax is approved by a majority
vote of the voters voting in an election on the issue of the
imposition, which election -'~~'-e..v-~'~'~° is
held .,.; .r,:.. «..,,. ,.a «i.,. „cc,,,.«;,,.. ,a.... ,, ,.c «,,;^ :.., ,,
no later than November 6, 1998, and in
compliance with subdivision (b).
(d) -?S~ (I) Except as
otherwise provided in paragraph (2), a local government
shall not impose, extend, or
increase any special tax unless ,^-'~• «~' that tax
is submitted to the electorate and approved by -a
two-thirds of the voters voting on the
proposition
.,«~ .°a
(2) A city, county, or city and county shall not impose, extend,
or increase any special tax to pay the principal, interest, and
redemption charges on bonded indebtedness incurred to fund the
construction, reconstruction, rehabilitation, or replacement of
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ACA 10 Assembly Constitutional Amendment -INTRODUCED Page 4 of 5
transportation infrastructure, unless that tax is submitted to the
electorate and approved by 55 percent of the voters voting on the
proposition.
(3) R special tax is not deemed to have been increased if it is
imposed at a rate not higher than the maximum rate for that tax
previously approved in the manner as required by law.
Fourth-- That Section 18 of Article XVI thereof is amended to
read:
SEC. 18. (a) No county, city, town, township, board of
education, or school district shall incur any indebtedness or
liability in any manner or for any purpose exceeding in any year the
income and revenue provided for-~..^'~ that
year, without the assent of two-thirds of the voters of the
public entity voting at an election to be held for that purpose,
except that with respect to any such public entity .~rlaisk
that is authorized to incur indebtedness for
public school purposes, any proposition for the incurrence of
indebtedness in the form of general obligation bonds for the purpose
of repairing, reconstructing or replacing public school buildings
determined, in the manner prescribed by law, to be structurally
unsafe for school use, shall be adopted upon the approval of a
majority of the voters of the public entity voting on the proposition
at -~.^'~ that election; nor unless
before or at the time of incurring _.svck._ the
indebtedness provision shall be made for the
collection of an annual tax sufficient to pay the interest on
-w-..^'' the indebtedness as it falls due,
and to provide for a sinking fund for the payment of the principal
thereof, on or before maturity, which shall not exceed forty years
from the time of contractingthe indebtedness.
(b) Notwithstanding subdivision (a), on or after the effective
date of the measure adding this subdivision, in the case of any
school district, community college district, or county office of
education, any proposition for the incurrence of indebtedness in the
form of general obligation bonds for the construction,
reconstruction, rehabilitation, or replacement of school facilities,
including the furnishing and equipping of school facilities, or the
acquisition or lease of real property for school facilities, shall be
adopted upon the approval of 55 percent of the voters of the
district or county, as appropriate, voting on the proposition at an
election. This subdivision shall apply only to a proposition for the
incurrence of indebtedness in the form of general obligation bonds
for the purposes specified in this subdivision if the proposition
meets all of the accountability requirements of paragraph (3f of
subdivision (b) of Section 1 of Article XIII A.
(c) Notwithstanding subdivision (a), on or after the effective
date of the measure adding this subdivision, in the case of any city,
county, or city and county, any proposition for the incurrence of
indebtedness in the form of general obligation bonds to-fund the
construction, reconstruction, rehabilitation, or replacement of
transportation infrastructure, shall be adopted upon the approval of
55 percent of the voters of the city, county, or city and county, as
appropriate, voting on the proposition at an election.
-:=T
(d) When two or more propositions for
incurring any indebtedness or liability are submitted at the same
election, the votes cast for and against each proposition shall be
counted separately, and when two-thirds or a majority or 55 percent
of the voters, as the case may be, voting on any one of those
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ACA 10 Assembly Constitutional Amendment - INTRODUC>/D Page 5 of 5
propositions, vote in favor thereof, the proposition shall be deemed
adopted.
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TRAf~SPORTATfON
MOTION
On January 10, 2008, the newly-formed Los Angeles County Transportation
Funding Collaborative (LACTFC) held a conference to address the County's
transportation funding challenges by bringing together key constituencies to explore
alternative transportation funding and implementation strategies. During a panel
discussion on funding opportunities at the State level, Assembly member Feuer discussed
his legislative call to action that included various upcoming legislative initiatives that he
will be authoring this session, including ACA 10, which is a constitutional amendment to
lower the bond threshold for transportation funds. He also broadly outlined other bills
that will empower local governments to implement transportation improvements and the
implementation of a cazbon fee. The dire need to identify new funding sources to invest
in transportation infrastructure necessitates that the City participate in the LACTFC.
I THEREFORE MOVE that the City Council direct the CLA to prepaze the
necessary motions to analyze the legislative efforts and initiatives proposed by Assembly
member Feuer at the January 10, 2008 Los Angeles County Transportation Funding
Collaborative (LACTFC) conference, including the implementation of a carbon fee and
other bills that empower local governments to implement transportation improvements.
~.
PRESENTED BY:
WEN GREUEL
Councilmember, 2nd District
SECONDED BY:
JAN 1 5 ~~~~
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