Today's Law As Amended


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ACA-1 Local government financing: affordable housing and public infrastructure: voter approval. (2021-2022)



As Amends the Law Today


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 One 1  percent (1%)  of the full cash value of such that  property. The one 1  percent (1%)  tax to shall  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 taxes or special assessments to pay the interest and redemption charges on any of the following:
(1) Indebtedness approved by the voters prior to  before  July 1, 1978.
(2) Bonded indebtedness for  to fund  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.  November 8, 2000.  This paragraph shall apply only if the proposition approved by the voters and resulting in the bonded indebtedness includes all of the following accountability requirements:
(A) A requirement that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIII this paragraph,  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 office 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, or county 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) (A) Bonded indebtedness incurred by a city, county, city and county, or special district for the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing for persons at risk of chronic homelessness, including persons with mental illness, or the acquisition or lease of real property for public infrastructure, affordable housing, or permanent supportive housing for persons at risk of chronic homelessness, including persons with mental illness, approved by 55 percent of the voters of the city, county, city and county, or special district, 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 requirements:
(i) A requirement that the proceeds from the sale of the bonds be used only for the purposes specified in this paragraph, and not for any other purpose, including city, county, city and county, or special district employee salaries and other operating expenses.
(ii) A list of the specific projects to be funded, and a certification that the city, county, city and county, or special district has evaluated alternative funding sources.
(iii) A requirement that the city, county, city and county, or special district conduct an annual, independent performance audit to ensure that the funds have been expended only on the specific projects listed.
(iv) A requirement that the city, county, city and county, or special district 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 public infrastructure or affordable housing projects, as applicable.
(v) A requirement that the city, county, city and county, or special district post the audits required by clauses (iii) and (iv) in a manner that is easily accessible to the public.
(vi) A requirement that the city, county, city and county, or special district appoint a citizens’ oversight committee to ensure that bond proceeds are expended only for the purposes described in the measure approved by the voters.
(B) For purposes of this paragraph:
(i) “Affordable housing” shall include housing developments, or portions of housing developments, that provide workforce housing affordable to households earning up to 150 percent of countywide median income, and housing developments, or portions of housing developments, that provide housing affordable to lower, low-, or very low income households, as those terms are defined in state law.
(ii) “At risk of chronic homelessness” includes, but is not limited to, persons who are at high risk of long-term or intermittent homelessness, including persons with mental illness exiting institutionalized settings, including, but not limited to, jail and mental health facilities, who were homeless prior to admission, transition age youth experiencing homelessness or with significant barriers to housing stability, and others, as defined in program guidelines.
(iii) “Permanent supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist residents in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. “Permanent supportive housing” includes associated facilities, if those facilities are used to provide services to housing residents.
(iv) “Public infrastructure” shall include, but is not limited to, projects that provide any of the following:
(I) Water or protect water quality.
(II) Sanitary sewer.
(III) Treatment of wastewater or reduction of pollution from stormwater runoff.
(IV) Protection of property from impacts of sea level rise.
(V) Parks and recreation facilities.
(VI) Open space.
(VII) Improvements to transit and streets and highways.
(VIII) Flood control.
(IX) Broadband internet access service expansion in underserved areas.
(X) Local hospital construction.
(XI) Public safety buildings or facilities, equipment related to fire suppression, emergency response equipment, or interoperable communications equipment for direct and exclusive use by fire, emergency response, policy or sheriff personnel.
(XII) Public library facilities.
(v) “Special district” has the same meaning as provided in subdivision (c) of Section 1 of Article XIII C and specifically includes a transit district, except that “special district” does not include a school district, redevelopment agency, or successor agency to a dissolved redevelopment agency.
(C) This paragraph shall apply to any city, county, city and county, or special district measure imposing an ad valorem tax to pay the interest and redemption charges on bonded indebtedness for those purposes described in this paragraph that is submitted at the same election as the measure adding this paragraph.
(c) (1)  Notwithstanding any other provisions of law or of this Constitution, a  school districts, district,  community college districts, and district, or  county offices office  of education may levy a 55 percent  55-percent  vote ad valorem tax pursuant to paragraph (3) of  subdivision (b).
(2) Notwithstanding any other provisions of law or this Constitution, a city, county, city and county, or special district may levy a 55-percent vote ad valorem tax pursuant to paragraph (4) of subdivision (b).

Second—

 That Section 4 of Article XIII A thereof is amended to read:

Section 4.

Cities, Counties and special districts,
Section SEC.  4.
 Cities, Counties and  Except as provided by Section 2.5 of Article XIII  special districts, C, a city, county, or special district,  by a two-thirds vote of the qualified electors of such district, its voters voting on the proposition,  may impose special taxes on such district, except ad valorem taxes a special tax within that city, county, or special district, except an ad valorem tax  on real property or a transaction transactions  tax or sales tax on the sale of real property within such City, County that city, county,  or special district.

Third—

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

SEC. 2.
 Local Government Tax Limitation.  Notwithstanding any other provision of this Constitution:
(a) All taxes Any tax  imposed by any a  local government shall be deemed to be either general taxes or special taxes. Special purpose districts or agencies, including school districts, shall have no power to levy general taxes.  is either a general tax or a special tax. A special district or agency, including a school district, has no authority to levy a general tax. 
(b) No A  local government may not  impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall is  not be  deemed to have been increased if it is imposed at a rate not higher than the maximum rate 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  before  the effective date of this article, shall may  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 shall be held within two years of the effective date of this article  no later than November 6, 1996,  and in compliance with subdivision (b).
(d) No  Except as provided by Section 2.5, a  local government may not  impose, extend, or increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall is  not be  deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved.

Fourth—

 That Section 2.5 is added to Article XIII C thereof, to read:

SEC. 2.5.
 (a) The imposition, extension, or increase of a sales and use tax imposed in accordance with the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or a successor law, a transactions and use tax imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) or a successor law, or a parcel tax imposed by a local government for the purpose of funding the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing for persons at risk of chronic homelessness, including persons with mental illness, or the acquisition or lease of real property for public infrastructure, affordable housing, or permanent supportive housing for persons at risk of chronic homelessness, including persons with mental illness, is subject to approval by 55 percent of the voters in the local government voting on the proposition, if both of the following conditions are met:
(1) The proposition is approved by a majority vote of the membership of the governing board of the local government.
(2) The proposition contains all of the following accountability requirements:
(A) A requirement that the proceeds of the tax only be used for the purposes specified in the proposition, and not for any other purpose, including general employee salaries and other operating expenses of the local government.
(B) A list of the specific projects that are to be funded by the tax, and a certification that the local government has evaluated alternative funding sources.
(C) A requirement that the local government conduct an annual, independent performance audit to ensure that the proceeds of the special tax have been expended only on the specific projects listed in the proposition.
(D) A requirement that the local government conduct an annual, independent financial audit of the proceeds from the tax during the lifetime of that tax.
(E) A requirement that the local government post the audits required by subparagraphs (C) and (D) in a manner that is easily accessible to the public.
(F) A requirement that the local government appoint a citizens’ oversight committee to ensure the proceeds of the special tax are expended only for the purposes described in the measure approved by the voters.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Affordable housing” shall include housing developments, or portions of housing developments, that provide workforce housing affordable to households earning up to 150 percent of countywide median income, and housing developments, or portions of housing developments, that provide housing affordable to lower, low-, or very low income households, as those terms are defined in state law.
(2) “At risk of chronic homelessness” includes, but is not limited to, persons who are at high risk of long-term or intermittent homelessness, including persons with mental illness exiting institutionalized settings, including, but not limited to, jail and mental health facilities, who were homeless prior to admission, transition age youth experiencing homelessness or with significant barriers to housing stability, and others, as defined in program guidelines.
(3) “Permanent supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist residents in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. “Permanent supportive housing” includes associated facilities, if those facilities are used to provide services to housing residents.
(4) “Public infrastructure” shall include, but is not limited to, the projects that provide any of the following:
(A) Water or protect water quality.
(B) Sanitary sewer.
(C) Treatment of wastewater or reduction of pollution from stormwater runoff.
(D) Protection of property from impacts of sea level rise.
(E) Parks and recreation facilities.
(F) Open space.
(G) Improvements to transit and streets and highways.
(H) Flood control.
(I) Broadband internet access service expansion in underserved areas.
(J) Local hospital construction.
(K) Public safety buildings or facilities, equipment related to fire suppression, emergency response equipment, or interoperable communications equipment for direct and exclusive use by fire, emergency response, policy or sheriff personnel.
(L) Public library facilities.
(c) This section shall apply to any local measure imposing, extending, or increasing a sales and use tax imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law, a transactions and use tax imposed in accordance with the Transactions and Use Tax Law, or a parcel tax imposed by a local government for those purposes described in subdivision (a) that is submitted at the same election as the measure adding this section.

Fifth—

 That Section 3 of Article XIII D thereof is amended to read:

SEC. 3.
 Property (a)   Taxes, Assessments, Fees and Charges Limited. An agency shall not assess a   (a)  No  tax, assessment, fee, or charge shall be assessed by any agency  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) Any special tax receiving a two-thirds vote pursuant to Section 4 of Article XIII A. A or receiving a 55-percent approval pursuant to Section 2.5 of Article XIII  C. 
(3) Assessments as provided by this article.
(4) Fees or charges for property related  property-related  services as provided by this article.
(b) For purposes of this article, fees for the provision of electrical or gas service shall are  not be  deemed charges or fees imposed as an incident of property ownership.

Sixth—

 That Section 18 of Article XVI thereof is amended to read:

SEC. 18.
 (a) No A  county, city, town, township, board of education, or school district, shall not  incur any indebtedness or liability in any manner or for any purpose exceeding in any year the income and revenue provided for such 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 which 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 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 such the  election; nor unless before or at the time of incurring such indebtedness provision shall be made for the collection of an annual tax sufficient to pay the interest on such 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 contracting the indebtedness. A special district, other than a board of education or school district, shall not incur any indebtedness or liability exceeding any applicable statutory limit, as prescribed by the statutes governing the special district as they currently read or may thereafter be amended by the Legislature.  
(b) (1)  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  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,  purposes described in paragraph (3) or (4) of subdivision (b) of Section 1 of Article XIII A  shall be adopted upon the approval of 55 percent of the voters of the district or county,  school district, community college district, county office of education, city, county, city and county, or other special district,  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 only  if the proposition meets all of the accountability requirements of paragraph (3) or (4)  of subdivision (b)  (b), as appropriate,  of Section 1 of Article XIII A.
(2) The amendments made to this subdivision by the measure adding this paragraph shall apply to any proposition for the incurrence of indebtedness in the form of general obligation bonds pursuant to this subdivision for the purposes described in paragraph (4) of subdivision (b) of Section 1 of Article XIII   A that is submitted at the same election as the measure adding this paragraph.
(c) 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 if  two-thirds or a majority or 55 percent of the voters, as the case may be, voting on any one of those propositions, vote in favor thereof, the proposition shall be deemed adopted.