Today's Law As Amended

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SCA-10 Government finance.(2011-2012)



First—

 That Section 23 is added to Article IV thereof, to read:

SEC. 23.
 (a) Notwithstanding any other provision of this Constitution or any other law, any change in state statute shall be enacted by an act passed by not less than two-thirds of each house of the Legislature if the change in state statute would do any of the following:
(1) Impose a new or higher tax on any taxpayer.
(2) Authorize or enable the imposition of a new or higher tax on any taxpayer by the State.
(3) Authorize or enable the imposition of a new or higher tax on any taxpayer by any political subdivision of the State.
(b) As used in this section, the following terms have the following meanings:
(1) “Change in state statute” includes, but is not limited to, all of the following:
(A) Bills passed by the Legislature.
(B) An addition to, or amendment or repeal of, an initiative statute that only becomes effective when approved by the electors.
(C) Any and every other possible type of modification to state law, whether by addition, amendment, or repeal, that is not identified in subparagraphs (A) and (B).
(2) “Political subdivision” includes any “local government” and any “special district” as those terms are defined in Section 1 of Article XIII C.
(3) “Tax” is defined in subdivision (b) of Section 3 of Article XIII A as applied to the State and subdivision (e) of Section 1 of Article XIII C as applied to an entity of local government.
(c) To the extent that any other provision of this Constitution could be read, whether expressly or impliedly, as authorizing the Legislature to enact any change in state statute pursuant to paragraphs (1) to (3), inclusive, of subdivision (a) without being enacted by an act passed by not less than two-thirds of each house of the Legislature, this section shall supersede that provision.
(d) (1) Any change in state statute enacted by the Legislature between December 1, 2011, and the effective date of this section, that would have been prohibited if this section were in effect on the date the change in state statute was enacted, is hereby repealed as of the date of its enactment.
(2) Notwithstanding paragraph (1), any change in state statute that is repealed under paragraph (1) may be reenacted by the Legislature and signed into law by the Governor in compliance with the requirements of this section.
(e) Notwithstanding Section 32 of Article XIII, any person shall have standing to challenge a violation of this section and enforce compliance with this section. In a legal action to challenge a violation of this section, the government bears the burden of proving its compliance with this section by a preponderance of the evidence.

Second—

 That Section 1 of Article XIII B thereof is amended to read:

SEC. SECTION  1.
 (a) The total annual appropriations subject to limitation of the State shall not exceed the appropriations limit for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.
(b)  The total annual appropriations subject to limitation of the State and of each  each entity of  local government shall not exceed the appropriations limit of the entity of government  for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.
(c) Any person shall have standing to challenge a violation of this article and enforce compliance with this article. In a legal action to challenge a violation of this article, the government bears the burden of proving its compliance with this article by a preponderance of the evidence.

Third—

 That Section 1.5 of Article XIII B thereof is amended to read:

SEC. 1.5.
 The annual calculation of the appropriations limit under this article for the State shall be reviewed as part of an annual financial audit conducted by the Controller. The annual calculation of the appropriations limit under this article for  each entity of local government shall be reviewed as part of an annual financial audit.

Fourth—

 That Section 1.9 is added to Article XIII B thereof, to read:

SEC. 1.9.
 (a) If, in any fiscal year, the total amount of all proceeds of taxes received by the State exceeds the amount that may be appropriated by the State in compliance with this article and the total amount of debt service of the State in that fiscal year is 5 percent or more of the appropriations limit, the excess revenue shall be appropriated in the subsequent fiscal year for the reduction of debt.
(b) If, in any fiscal year, the total amount of all proceeds of taxes received by an entity of local government exceeds the amount that may be appropriated by the entity of local government in compliance with this article and the total amount of debt service of the entity of local government in that fiscal year is 5 percent or more of the appropriations limit, the excess revenue shall be appropriated in the subsequent fiscal year for the reduction of debt.

Fifth—

 That Section 2 of Article XIII B thereof is amended to read:

SEC. 2.
 (a) (1) If,  Fifty percent of all revenues   in any fiscal year, the total amount of all proceeds of taxes  received by the State in a fiscal year and in the fiscal year immediately following it in excess of the amount which exceeds the amount that  may be appropriated by the State in compliance with this article during  by less than two billion dollars ($2,000,000,000) and the total amount of debt service of the State in  that fiscal year and the fiscal year immediately following it shall be transferred and allocated, from a fund established for that purpose, pursuant to Section 8.5 of Article XVI. is less than 5 percent of the appropriations limit, the excess revenue shall be appropriated as follows: 
(1) Fifty percent of the excess revenue shall be transferred and allocated, from a fund established for that purpose, pursuant to Section 8.5 of Article XVI. Notwithstanding Article XVI, revenues transferred and allocated pursuant to this paragraph shall only supplement the funding guarantee for schools, and shall not change the minimum funding formula or the maintenance factor.
(2) Fifty percent of the excess revenue shall be transferred to the prudent state reserve fund required by Section 5.5. Notwithstanding Sections 5 and 5.5, excess revenues transferred pursuant to this paragraph shall not constitute an appropriation subject to limitation.
(2) (b)  Fifty percent of all revenues  If, in any fiscal year, the total amount of all proceeds of taxes  received by the State in a fiscal year and in the fiscal year immediately following it in excess of the amount which exceeds the amount that  may be appropriated by the State in compliance with this article during  by two billion dollars ($2,000,000,000) or more and the total amount of debt service of the State in  that fiscal year and the fiscal year immediately following it shall be returned by a revision is less than 5 percent of the appropriations limit, the excess revenue shall be refunded to the taxpayers by a reduction  of tax rates or fee schedules  fees  within the next two subsequent fiscal years.
(b) (c)  All revenues received by an entity of government, other than the State, in a fiscal year and in the fiscal year immediately following it in excess of the amount which If, in any fiscal year, the total amount of all proceeds of taxes received by an entity of local government exceeds the amount that  may be appropriated by the entity of local government  in compliance with this article during  and the total amount of debt service of the entity of local government in  that fiscal year and the fiscal year immediately following it is less than 5 percent of the appropriations limit, the excess revenue  shall be returned to the taxpayers  by a revision reduction  of tax rates or fee schedules  fees  within the next two subsequent fiscal years.

Sixth—

 That Section 8 of Article XIII B thereof is amended to read:

SEC. 8.
 As used in this article and except as otherwise expressly provided herein:
(a) “Appropriations subject to limitation” of the State means any authorization to expend during a fiscal year the proceeds of taxes levied by or for the State, exclusive of state subventions for the use and operation of local government (other than subventions made pursuant to Section 6) and further exclusive of refunds of taxes, benefit payments from retirement, unemployment insurance, and disability insurance funds.
(b) “Appropriations subject to limitation” of an entity of local government means any authorization to expend during a fiscal year the proceeds of taxes levied by or for that entity and the proceeds of state subventions to that entity (other than subventions made pursuant to Section 6) exclusive of refunds of taxes.
(c) (1) With respect to the State, “proceeds of taxes” shall include, but not be restricted to, all tax revenues and the proceeds to the State from regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by the State in providing the regulation, product, or service, and any return on the investment of those revenues and proceeds. “Proceeds of taxes” shall not include, subventions to local governments, other than subventions made pursuant to Section 6.
(c) (2)  “Proceeds of  With respect to any entity of local government, “proceeds of  taxes” shall include, but not be restricted to, all tax revenues and the proceeds to an entity of government,  local government  from (1)  regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity  the entity of local government  in providing the regulation, product, or service, and (2) the investment of tax revenues. With respect to any local government, “proceeds of taxes” shall include  subventions received from the State, other than pursuant to Section 6, and, with respect to the State, proceeds of taxes shall exclude such and any return on the investment of those revenues, proceeds, and  subventions.
(d) “Local government” or “entity of local government”  means any city, county, city and county, school district,  charter city, charter county, charter city and county, school district, community college district,  special district, authority, or any  other political subdivision of or within the State.
(e) (1) “Change in the cost of living” for the State, a school district, or a community college district means the percentage change in California per capita personal income from the preceding year.
(2) “Change in the cost of living” for an entity of local government, other than a school district or a community college district, shall be either (A) the percentage change in California per capita personal income from the preceding year, or (B) the percentage change in the local assessment roll from the preceding year for the jurisdiction due to the addition of local nonresidential new construction. Each entity of local government shall select its change in the cost of living pursuant to this paragraph annually by a recorded vote of the entity’s governing body.
(f) (1)  “Change in population” of any entity of local  government, other than the State,  a school district, district  or a community college district, shall be determined by a method prescribed by the Legislature. Legislature, provided that the determination shall be revised, as necessary, to reflect the periodic census conducted by the United States Department of Commerce or any other department of the federal government that should succeed to the duties of the United States Department of Commerce. 
(2)  “Change in population” of a school district or a community college district shall be the percentage change in the average daily attendance of the school district or community college district from the preceding fiscal year, as determined by a method prescribed by the Legislature.
(3)  “Change in population” of the State shall be determined by adding (1) the percentage change in the State’s population multiplied by the percentage of the State’s budget in the prior fiscal year that is expended for other than educational purposes for kindergarten and grades one to 12, inclusive, and the community colleges, and (2) the percentage change in the total statewide average daily attendance in kindergarten and grades one to 12, inclusive, and the community colleges, multiplied by the percentage of the State’s budget in the prior fiscal year that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the community colleges.
Any determination of population pursuant to this subdivision, paragraph,  other than that measured by average daily attendance, shall be revised, as necessary, to reflect the periodic census conducted by the United States Department of Commerce, or successor department. Commerce or any other department of the federal government that should succeed to the duties of the United States Department of Commerce. 
(g) “Debt service” means appropriations required to pay the cost of interest and redemption charges, including the funding of any reserve or sinking fund required in connection therewith, on indebtedness existing or legally authorized as of January 1, 1979, or on bonded indebtedness thereafter approved according to law by a vote of the electors of the issuing entity voting in an election for that purpose. law. 
(h) The “appropriations limit” of each entity of government  local government and of the State  for each fiscal year is that amount which that  total annual appropriations subject to limitation may not exceed under Sections 1 and 3. However, the “appropriations limit” of each entity of government for fiscal year 1978–79 is the total of the appropriations subject to limitation of the entity for that fiscal year. For fiscal year 1978–79, state subventions to local governments, exclusive of federal grants, are deemed to have been derived from the proceeds of state taxes. 
(i) Except as otherwise provided in Section 5, “appropriations subject to limitation” do not include local agency loan funds or indebtedness funds, investment (or authorizations to invest) funds of the State, or of an entity of local government in accounts at banks or savings and loan associations or in liquid securities.
(j) “Debt” means the total amount of outstanding general obligation bonds or other bonded indebtedness of the State or of an entity of local government, including interest and redemption charges, approved according to law.

Seventh—

 That Section 9 of Article XIII B thereof is amended to read:

SEC. 9.
 “Appropriations subject to limitation” for each entity of government  local government and for the State  do not include:
(a) Appropriations for debt service.
(b) Appropriations required to comply with mandates of the courts or the federal government which, without discretion, require an expenditure for additional services or which that  unavoidably make the provision of existing services more costly.
(c) Appropriations of any special district which that  existed on January 1, 1978, and which that  did not as of the 1977–78 fiscal year levy an ad valorem tax on property in excess of 121/2 cents per $100  ($0.125) per one hundred dollars ($100)  of assessed value; or the appropriations of any special district then existing or thereafter created by a vote of the people, which is totally funded by other than the proceeds of taxes.
(d) Appropriations for all qualified capital outlay projects, as defined by the Legislature. projects. As used in this subdivision, an appropriation for a “qualified capital outlay project” means an appropriation for a fixed asset, including land and construction, with a useful life of 10 or more years and a value that equals or exceeds one hundred thousand dollars ($100,000). 
(e) Appropriations of revenue which that  are derived from any of the following:
(1) That portion of the taxes imposed on motor vehicle fuels for use in motor vehicles upon public streets and highways at a rate of more than nine cents ($0.09) per gallon.
(2) Sales and use taxes collected on that increment of the tax specified in paragraph (1).
(3) That portion of the weight fee imposed on commercial vehicles which that  exceeds the weight fee imposed on those vehicles on January 1, 1990.

Eighth—

 That Section 9.5 is added to Article XIII B thereof, to read:

SEC. 9.5.
 Any statute enacted pursuant to Section 8 of Article II or Article IV shall not do any of the following:
(a) Exempt or have the effect of exempting any appropriation from the appropriations limit of the State or of an entity of local government.
(b) Exempt or have the effect of exempting any proceeds of taxes from this article.

Ninth—

 That Section 10.5 of Article XIII B thereof is amended to read:

SEC. 10.5.
 (a) For fiscal years beginning on or after July 1, 2013, the appropriations limit for the State shall be the total amount of appropriations subject to limitation in the fiscal year 2010–11 adjusted for changes in population and changes in the cost of living from that fiscal year pursuant to this article.
For (b)   fiscal years beginning on or after July 1, 1990, the  The  appropriations limit of each entity of local  government shall be the appropriations limit for the 1986–87 fiscal year adjusted for the changes made from that fiscal year pursuant to this article, as amended by the measure adding this section, adjusted for the changes required by Section 3.
Tenth—
 This measure shall be liberally construed to promote its objectives to the fullest extent possible. If this measure is found to be inconsistent with any other provision of the California Constitution, whether expressly or impliedly, this measure shall be controlling.
Eleventh—
 If any section, subdivision, paragraph, sentence, clause, phrase, or word of this measure is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of the measure. The people of California hereby declare that the people would have passed this measure and each and every section, subdivision, paragraph, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any portion of this measure would be subsequently declared invalid.