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HomeMy WebLinkAbout08. Hold discussion regarding a recent California Business Roundtable proposition submittal Page 1 of 15
Item 8.
CENTRALSAN
Jdf A- hom
CENTRAL CONTRA COSTA SANITARY DISTRICT
December 16, 2021
TO: HONORABLE BOARD OF DIRECTORS
FROM: EMILYBARNETT, COMMUNICATIONS AND GOVERNMENT RELATIONS
MANAGER
DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
KENTON L. ALM, COUNSEL FOR THE DISTRICT
SUBJECT: RECEIVE OVERVIEW AND HOLD DISCUSSION REGARDING THE
CALIFORNIA BUSINESS ROUNDTABLE'S PROPOSITION ENTITLED THE
TAXPAYER PROTECTIONAND GOVERNMENTACCOUNTABILITYACT
Attached is the California Business Roundtable proposed draft proposition language submitted to the
California Attorney General on November 30, 2021. The public comment period deadline on this
proposition is December 30, 2021.
After initial review, staff has concerns about the proposed proposition language to include the following:
• The proposition may impact the District's ability to collect capacity fees. Therefore, new wastewater
users would not pay their fair share as part of the current equity buy-in process. Early estimates by
staff find that this could be a total loss of revenue of up to $8 million annually. Existing ratepayers
would need to pay more to make up for the lost revenue, estimated to be up to $50 per-year per-
residence.
• The proposed proposition language also allows any person, not just Central San ratepayers, to
legally challenge the District's rates, fees, and charges.
• The proposed proposition changes the basis for setting rates, fees and charges from "reasonable"
to only the "minimum amount necessary." With no clear standard of what the "minimum amount
necessary" is for a wastewater utility. This could jeopardize value-added programs and services such
as Household Hazardous Waste collection and student/public education programs.
• The proposition could flood local governments with lawsuits by changing the standard for defending
imposed fees to a"clear and convincing" standard, a higher-level standard than what is currently in
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place.
Staff will present the material during the meeting and answer any questions, and requests direction from the
Board, if applicable.
Strategic Plan Tie-In
GOAL THREE: Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial
management
ATTACHMENTS:
1. CBRT Proposition Proposed Language
December 16, 2021 Regular Board Meeting Agenda Packet- Page 51 of 216
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BELL, McANDREWS & HILTACHK, LLP
ATTORNEYS AND COUNSELORS AT LAW
4S5 CAPITOL MALL, SUITE 600
SACRAMENTO, CALIFORNIA 95814
(916) 442-7757 2 ® 0 0 4 2
FAX (916) 442-7759
www.bmhlaw.com
November 30, 2021 j
Anabel Renteria y '
Initiative Coordinator NOV 3 0 2021
Office of the Attorney General
State of California INITIATIVE COORDINATOR
PO Box 994255 ATTORNEY GENERAL'S OFFICE
Sacramento, CA 94244-25550
Re: Request for Title and Summary for Proposed Initiative
Dear Initiative Coordinator:
With this letter I submit a proposed statewide ballot measure, entitled The
Taxpayer Protection and Government Accountability Act, in accordance with Article II
of Section 10(d) of the California Constitution. I am the proponent of the measure and a
registered voter in the State of California. Please prepare a circulating title and
summary of the measure as provided by law.
Enclosed with this letter and text of the proposed measure is a check in the
amount of$2,000 and the affidavits required by the Elections Code.
For purposes of inquiries from the public and the media; please direct them as
follows:
Thomas W. Hiltachk
455 Capitol Mall,Suite 600
Sacramento, CA 95814
916-442-7757
Thank you for your time and attention processing my request.
Sincere
Thomas W./Hiltachk
December 16, 2021 Regular Board Meeting Agenda Packet- Page 52 of 216
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21 - 4042
The Taxpayer Protection and Government Accountability Act
[Deleted codified text is denoted in stFikeeut.Added codified text is denoted by italics and underline.]
Section 1.Title
This Act shall be known, and may be cited as, the Taxpayer Protection and Government Accountability
Act.
Section 2. Findings and Declarations
(a) California's cost-of-living crisis is driving up the State's poverty rate, contributing to our ongoing
homelessness crisis and pushing lower- and middle-class families out of the state. State and local
governments' appetite for new revenue adds to the rapidly rising costs of living that Californians face for
housing,childcare,gasoline,food, energy, healthcare,and education. In the past 10 years alone, Personal
Income Tax revenue into the State's General Fund has grown 129%. In fact,total tax revenue coming into
the General Fund has more than doubled in the past 10 years, increasing by$121 billion during that time
and now topping $240 billion. Tax revenue to local governments has also grown rapidly, again nearly
doubling in the last 10 years.At the same time, unelected bureaucrats,empowered by politicians and the
courts, have nearly unchecked ability to raise additional costs on consumers by imposing so-called "fees"
and other costs without a vote of a single elected body. This growing cost burden is hurting California
families who find themselves struggling to live paycheck to paycheck, and are being forced to make tough
choices between paying for housing, food, or healthcare.
(b) Californians are already among the highest taxed people in the country and already pay the highest
tax rates in the nation for the state personal income tax, sales taxes, and gasoline tax. From the most
recent US Census Bureau data, California state and local government general revenues collected in 2019
from taxes,fees,charges,and other non-utility local sources were the highest in the nation at$533 billion,
making them the 6th highest on a per capita basis at$13,503 per person. With 12 percent of the national
population, US Census Bureau data shows that Californians in 2019 paid 16 percent of all taxes collected
by the states including 13 percent of all general sales taxes, 16 percent of all vehicle license fees, 16
percent of all property taxes, 22 percent of all corporation taxes, and 22 percent of all personal income
taxes. This growing tax burden, and the impact on the State's cost-of-living crisis, have not stopped
politicians from demanding more. In 2021 alone, they introduced legislation to raise more than $234
billion in new and higher taxes and fees.
(c) But the tax burden is only part of the story of California's cost crisis. Californians pay billions more in
costs imposed by unelected bureaucrats through "fees" and other revenue-raising mechanisms. In fact,
there are now more than 5,100 fees and other charges driving up the cost of living beyond the significant
tax burden already placed on working families. What's worse, these fees and other charges don't go to
pay for the services being provided; they go to cover overhead, labor and growing pension costs. Since
2010, state revenue from these "fees" has more than doubled. In 2022-23, the state expects to bring in
more than $21.5 billion in fee revenue alone. Working families cannot keep up with the rapid growth in
taxes,fees and other costs. California now has the highest cost-adjusted poverty rate in the country.
(d) Californians have tried repeatedly to increase their voice in when and how taxes,fees and other costs
are raised by enacting a series of measures to make taxes more predictable and guarantee transparency
and accountability.Voter-approved ballot measures such as Proposition 13 (1978), Proposition 62 (1986),
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Proposition 218 (1996), and Proposition 26 (2010) required state and local governments to make their
case to the voters on the need for increased government revenues.
(e) Contrary to the voters' intent, voter approval of government revenue increases and spending
accountability measures have been weakened by the Legislature,the courts,and special interests, making
it easier to raise government revenues in a variety of ways by only a simple majority of the Legislature and
with no vote by the public who is expected to pay the costs.
(f) Now, thanks to consistent efforts to undermine the repeated will of the voters, politicians, state and
local governments,and special interests promise that taxpayer money will be spent for a specific purpose,
only to divert its use once the money is collected. Revenues that are supposed to improve education
instead have been diverted to general salary and benefit increases. Revenues that were promised to
improve and expand government services were instead diverted to pay down debts created by past
government decisions. Recent major transportation improvements have seen cost overruns more than
double their original estimate. Polling by the nonpartisan Public Policy Institute of California showed 88
percent of Californians believe state government wastes a lot or some of the money we pay in taxes and
charges.
(g) Worse, court-created loopholes have enabled governments and their surrogates to become less
transparent about how the funds taken from taxpayers are raised and spent. Loopholes have been created
which are used by the Legislature, local governments and even special interest groups to:(1)pass vaguely-
worded statutes allowing unelected bureaucrats to impose new fees and other charges on their own that
increase the costs of goods and services in the state; (2) impose new taxes and other charges by hiding
them and simply calling them by another name or even using the term "something else;" (3) shelter the
revenues from voter approval by running the revenues through a nonprofit organization or another third
party; and (4) encourage "divide and tax" by making it easier to raise taxes or charges on only a part of
the population through simple majority votes in low turnout elections.
(h) Desperate for new revenue from working families, politicians now illegally campaign for new and
higher taxes they put on the ballot by using taxpayer dollars. Poorly disguised as voter outreach or
education,these politicians spend millions of taxpayer dollars to urge voters to support new tax measures.
In one instance, a local government agreed to pay more than $1 million to settle a claim that it illegally
used taxpayer dollars to support a local tax increase.
Section 3. Statement of Purpose
(a) In enacting this measure, the voters reassert their right to a voice and a vote on new and higher taxes
by requiring any new or higher tax to be put before voters for approval. Voters intend to ensure that all
taxes and other charges are passed or rejected by either the voters themselves or a governing body
elected by voters and not by unelected and unaccountable bureaucrats.
(b) Furthermore,the purpose and intent of the voters in enacting this measure is to increase transparency
and accountability over higher taxes and charges by requiring any tax measure placed on the ballot—
either at the state or local level—to clearly state if the tax is for general purposes or a specific and clearly
defined service or program, how long it will be in effect, and the estimated cost of the tax.The voters also
intend to increase their ability to challenge the legality of a new tax or charge in court prior to the tax or
charge being collected.
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(c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new
or increased form of government revenue, by any name or manner of extraction paid directly or indirectly
by Californians, shall be authorized only by a two-thirds vote of the Legislature and signature by the
Governor to ensure that the purposes for such charges are broadly supported and transparently debated.
(d) Furthermore, the purpose and intent of the voters in enacting this measure is also to ensure that
taxpayers have the right and ability to effectively balance new or increased taxes and other charges with
the rapidly increasing costs Californians are already paying for housing, food, childcare,gasoline, energy,
healthcare, education, and other basic costs of living, and to further protect the existing constitutional
limit on property taxes and ensure that the revenue from such taxes remain local.
(e) Furthermore, the purpose and intent of the voters in enacting this measure is to force transparency
and accountability on how state and local revenues are utilized, so that revenues are used for their
promised purposes,and not diverted to other uses.
(f) Furthermore, the purpose and intent of the voters in enacting this measure is to close loopholes
currently exploited by local politicians by explicitly prohibiting taxpayer dollars from being used to
campaign for any measure on the state or local ballot and holding politicians personally liable for any
violation of the new law.
(g) In enacting this measure,the voters also additionally intend to reverse loopholes in the legislative two-
thirds vote and voter approval requirements for government revenue increases created by the courts
including, but not limited to, Cannabis Coalition v. City of Upland, Chamber of Commerce v.Air Resources
Board,Schmeer v. Los Angeles County and Wilde v. City of Dunsmuir.
Section 4. Sections 3 and 14 of Article XIII A of the California Constitution are amended to read:
Sec. 3(a) Every levy, charge, or exaction of any kind imposed by state law is either a tax or an exempt
charge.
(b){a4 Any change in state statute law which results in any taxpayer paying a higher tax must be imposed
by an act passed by not less than two-thirds of all members elected to each of the two houses of the
Legislature, and submitted to the electorate and approved by a majority vote, except that no new ad
valorem taxes on real property,or sales or transaction taxes on the sales of real property,maybe imposed.
Each Act shall include:
(1)A specific duration of time that the tax will be imposed and an estimate of the annual amount expected
to be derived from the tax.
(2)A specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.
If the revenue from the tax can be spent for unrestricted general revenue purposes, then a statement that
the tax revenue can be spent for"unrestricted general revenue purposes"shall be included in the separate,
stand-alone section required by paragraph (3). Any proposed change to the use of the revenue from the
tax shall be adopted by a separate act that is passed by not less than two-thirds of all members elected to
each of the two houses of the Legislature and submitted to the electorate and approved by a majority vote.
(3)A true and impartial statement of facts explicitly and affirmatively identifying each tax and the specific
limitation on how the revenue therefrom can be spent is set forth in the state law as a separate, stand-
alone section containing no other information.
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(c)Any change in state law which results in any taxpayer paying an exempt charge must be imposed by an
act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature.
Each act shall specify the type of exempt charge as provided in subdivision (e), and the amount or rate of
the exempt charge to be imposed.
LdLoq-)As used in this section and in Section 9 of Article ll, "tax" means every aoy levy, charge, or exaction
of any kind imposed by the State state law that is not an exempt charge.
(e)As used in this section, "exempt charge"means only the following:
(1) a eharge imposed for a speGifiG beRefit eeRferred er pFivilege granted diFeGtly to the payer that Is ne
the benefit er gFa n+ing the n „ilege to the payer.
(1)94 A reasonable charge imposed for a specific government service or product provided directly to the
payor that is not provided to those not charged, and which does not exceed the reasonable actual costs
to the State of providing the service or product to the payor.
(2)04 A charge imposed for the reasonable regulatory costs to the State incident to issuing licenses and
permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and
the administrative enforcement and adjudication thereof.
(3)A levy, charge or exaction collected from local units of government, health care providers or health
care service plans that is primarily used by the State of California for the purposes of increasing
reimbursement rates or payments under the Medi-Cal program, and the revenues of which are primarily
used to finance the non-federal portion of Medi-Cal medical assistance expenditures.
(4)A reasonable charge imposed for entrance to or use of state property,or the purchase, rental,or lease
of state property,except charges governed by Section 15 of Article XI.
(5)A fine;or penalty,^r ether mere+.,r„GhaFge including any applicable interest for nonpayment thereof,
imposed by the judicial branch of government or the State, as ^ er-„It of a state administrative
enforcement agency pursuant to adiudicatory due process, to punish a violation of law.
(6)A levy, charge or exaction collected for the promotion of tourism in California pursuant to Chapter 1
(commencing with Section 13995) of part 4.7 Division 3 of Title 2 of the Government Code.
ffL{r-}Any tax or exempt charge adopted after October daneaFy-1, 2021 2010, but prior to the effective
date of this act, that was not adopted in compliance with the requirements of this section is void 12
months after the effective date of this act unless the tax or exempt charge is reenacted by the I egisl-.
and signed into law by the Governe in compliance with the requirements of this section.
(g)(1){c}The State bears the burden of proving by a pFepender^n^e of the clear and convincing evidence
that a levy, charge, or other exaction is an exempt charge and not a tax. The State bears the burden of
Proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that
the amount charged does not exceed the actual cost of providing the service or product to the payor.;that
buFdens n,` r benefits Feeeived frn m,+he ernmentarl aGtiryr;t-,y,
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(2)The retention of revenue by,or the payment to, a non-governmental entity of a levy,charge, or exaction
of any kind imposed by state law,shall not be a factor in determining whether the levy, charge, or exaction
is a tax or exempt charge.
(3) The characterization of a levy, charge, or exaction of any kind imposed by state law as being voluntary,
or paid in exchange for a benefit, privilege, allowance, authorization, or asset, shall not be a factor in
determining whether the levy, charge, or exaction is a tax or an exempt charge.
(4) The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether
the levy, charge, or exaction is a tax or exempt charge.
(h)As used in this section:
(1) "Actual cost"of providing a service or product means: (i)the minimum amount necessary to reimburse
the government for the cost of providing the service or product to the payor, and (ii) where the amount
charged is not used by the government for any purpose other than reimbursing that cost. In computing
"actual cost"the maximum amount that may be imposed is the actual cost less all othersources of revenue
including but not limited to taxes, other exempt charges, grants, and state or federal funds received to
provide such service or product.
(2) "Extend" includes but is not limited to, doing any of the following with respect to a tax or exempt
charge lengthening its duration, delaying or eliminating its expiration, expanding its application to a new
territory or class of payor, or expanding the base to which its rate is applied.
(3) "Impose"means adopt, enact, reenact, create, establish, collect, increase or extend.
(4) "State law"includes, but is not limited to, any state statute, state regulation, state executive order,
state resolution state ruling, state opinion letter, or other legal authority or interpretation adopted,
enacted enforced issued or implemented by the legislative or executive branches of state government.
"State law"does not include actions taken by the Regents of the University of California, or Trustees of the
California State University, and the Board of Governors of the California Community Colleges.
Sec. 14. All property taxed by state or local government shall be assessed in the county,city, and district
in which it is situated. Notwithstanding any other provision of law, such state or local property taxes
shall be collected by the counties and apportioned according to law to the districts within the counties.
Section 5. Section 1 of Article XIII C of the California Constitution is amended,to read:
Sec. 1. Definitions. As used in this article:
(a) "Actual cost"of providing a service or product means: (i)the minimum amount necessary to reimburse
the government for the cost of providing the service or product to the payor, and (ii) where the amount
charged is not used by the government for any purpose other than reimbursing that cost. In computing
"actual cost"the maximum amount that may be imposed is the actual cost less all othersources of revenue
including but not limited to taxes, other exempt charges, grants, and state or federal funds received to
provide such service or product.
(b) "Extend"includes,but is not limited to, doing any of the following with respect to a tax,exempt charge,
or Article X111 D assessment, fee, or charge:lengthening its duration, delaying or eliminating its expiration,
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expanding its application to a new territory or class of payor, or expanding the base to which its rate is
applied.
�c {a}"General tax" means any tax imposed for general governmental purposes.
(d) "Impose"means adopt, enact, reenact, create, establish, collect, increase or extend.
LeJN"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, or an elector pursuant to Article 11 or
the initiative power provided by a charter, or statute.
(f) "Local law"includes, but is not limited to, any ordinance, resolution, regulation, ruling, opinion letter,
or other legal authority or interpretation adopted, enacted, enforced, issued, or implemented by a local
government.
L L{c4"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.
j�h) {d} "Special tax" means any tax imposed for specific purposes, including a tax imposed for specific
purposes, which is placed into a general fund.
(i){e}As used in this article, and in Section 9 of Article 11, "tax" means every a-p-y-levy, charge, or exaction
of any kind, imposed by a local o„vera eRt law that is not an exempt charge., ^)(^^p+the felle ,iRg:
(i)As used in this section, "Exempt charge"means only the following:
(I) A eharge impesed fer a speGifiG benefit Gonferred er privilege granted direGtly to the payer that is n
of eenfer g the benefit or Ming the nyilege
(1)94 A reasonable charge imposed for a specific local government service or product provided directly
to the payor that is not provided to those not charged, and which does not exceed the reasenable actual
costs to the local government of providing the service or product.
(2){3}A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and
permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and
the administrative enforcement and adjudication thereof.
(3){4}A reasonable charge impesed for entrance to or use of local government property,or the purchase,
rental, or lease of local government property.
(4) {3} A fine; orpenalty, AY ^+"^r PAARetar„ charge including any applicable interest for nonpayment
thereof, imposed by the judicial branch of government or a local government administrative enforcement
agency pursuant to adjudicatory due process,as a Fesul,9 to punish a violation of law.
(5)W A charge imposed as a condition of property development, excluding any levy, charge, or exaction
regulating or related to vehicle miles traveled and imposed as a condition of property development. No
condition of property development relating to vehicle miles traveled can be imposed until and unless the
voters of the county in which the development is located have approved a vehicle miles traveled
countywide levy,charge, or exaction equally applicable to all drivers in the county. The condition imposed
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on property development relating to vehicle miles traveled may not be greater than, and must be collected
in the some way as the countywide levy, charge or exaction applicable to each driver in the
development. If the voters do not approve the levy, charge, or exaction, no condition relating to vehicle
miles traveled maybe imposed on property development. The voter approval required by this paragraph
may not be used to delay or deny the approval of property development.
i
6 An Assessments and pmpeFty related fees assessment, fee, or charqg!impesed in aGGOFdanee w^+"
the pFoviseens of subject to Article XIII D, or an assessment imposed upon a business by a tourism
marketing or property and business improvement district.
(7) A charge imposed for a specific health care service provided directly to the payor and that is not
provided to those not charged, and which does not exceed the reasonable costs to the local government
of providing the health care service. As used in this paragraph, a "health care service"means a service
licensed or exempt from licensure by the state pursuant to Chapters 1, 1.3, or 2 of Division 2 of the Health
and Safety Code.
er other e)(aGt;GR ;s net a tax,that the arneunt is ne mE)Fe than neGessary to eeve.r the Fea-renable Gests e
the govemmental aGtIvity and that the rnanneFiR WhiGh these cests are allOGated to a payer hpar;;fair A
reasonable relationship te the payeF's burdens en, or benefits Feeeived fmm, the geverHmental aGtivity.
Section 6. Section 2 of Article XIII C of the California Constitution is amended to read:
Sec. 2. Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
(a) Every levy, charge or exaction of any kind imposed by local law is either a tax or an exempt charge. All
taxes imposed by any 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.
(b) No local government, whether proposed by the governing body or by an elector, may impose,
-. s any general tax unless and until that tax is submitted to the electorate and approved by a
majority vote. A general tax shall 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) ,
er afteF january !, 1995, and prieF to the effeGtive date ef this artiGle, shall eentin-He te -he imposed enly
Of appreved by a majerity vote of the veters voting in an e!eGtgE)R E)R the issue of the imposition, whick
e!eGtiE)n sh-a" -he held- within two yeaFs of the effeetive date ef this aFtiele and On reernplianee with
r1,hd*;4ec;*An (b). (d) No local government whether proposed by the governing body or by an elector, may
impose, extend, er OnGpease any special tax unless and until that tax is submitted to the electorate and
approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed
at a rate not higher than the maximum rate so approved.
(d) The governing body of a local government shall only submit a tax ordinance proposed by the local
government to the electorate by a resolution passed by not less than two-thirds of all members elected to
the governing body. The governing body of a local government shall submit a tax ordinance proposed by
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an elector, to the electorate by a resolution of the governing body. Any proposed tax to be submitted to
the electorate shall be consolidated with a regularly scheduled general election for members of the
governing body of the local government, except in cases of an emergency declared by a unanimous vote
of the governing body.
(e) Only the governing body of a local government shall have the authority to impose any exempt charge.
The governing body shall impose an exempt charge by an ordinance specifying the type of exempt charge
as provided in Section 1(j)and the amount or rate of the exempt charge to be imposed, and passed by not
less than two-thirds of all members elected to the governing body. An exempt charge imposed by a
governing body shall be subject to referendum pursuant to the same signature requirement applicable to
statewide referendum measures. This subdivision shall not apply to charges specified in paragraph (7) of
subdivision (i)of Section 1.
(f)No amendment to a Charter which provides for the imposition, extension,or increase of a tax or exempt
charge shall be submitted to or approved by the electors, nor shall any such amendment to a Charter
hereafter submitted to or approved by the electors become effective for any purpose.
(g) Each measure providing for the imposition of a tax, including a measure proposed by an elector
pursuant to Article 11, by Charter, or by statute providing for the initiative power, shall be submitted to the
electors in the form of an ordinance. The ordinance shall include:
(1)A specific duration of time that the tax will be imposed and an estimate of the annual amount expected
to be derived from the tax.
(2)A specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.
If the revenue from a tax can be spent for unrestricted general revenue purposes, then a statement saying
only that the tax revenue can be spent for"unrestricted general revenue purposes"shall be included in the
separate, stand-alone section required by paragraph (3). If the ordinance proposes a _general tax, no
advisory measure may appear on the some ballot that would indicate that the revenue from the general
tax will be used for any specific purpose. Any proposed change to the use of the revenue from the tax by
a local governing body shall be adopted by a separate ordinance that is passed by not less than two-thirds
of all members elected to the governing body and submitted to the electorate and approved by a two-
thirds vote.
(3)A true and impartial statement of facts explicitly and affirmatively identifying each tax and the specific
limitation on how the revenue therefrom can be spent is set forth in the act as a separate, stand-alone
section containing no other information.
(h)Any tax or exempt charge adopted after October 1,2021,but prior to the effective date of this act, that
was not adopted in compliance with the requirements of this section is void 12 months after the effective
date of this act unless the tax or exempt charge is reenacted in compliance with the requirements of this
section.
(i)(1) The local government bears the burden of proving by clear and convincing evidence that a levy,
charge or exaction is an exempt charge and not a tax. The local government bears the burden of proving
by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount
charged does not exceed the actual cost of providing the service or product to the payor.
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(2)The retention of revenue by, or the payment to, a non-governmental entity of a levy,charge, or exaction
of any kind imposed by a local law, shall not be a factor in determining whether the levy, charge, or
exaction is a tax or exempt charge.
(3)The characterization of a levy,charge, or exaction of any kind imposed by a local law as being voluntary,
or paid in exchange for a benefit, privilege, allowance, authorization, or asset, shall not be factors in j
determining whether the levy, charge, or exaction is a tax or an exempt charge.
(4) The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether
the levy, charge, or exaction is a tax or exempt charge.
Section 7. Section 3 of Article XIII D of the California Constitution is amended,to read:
Sec. 3. Property Taxes,Assessments, Fees and Charges Limited
(a) No tax,assessment,fee,e;charge, or surcharge, including a surcharge based on the value of property,
shall be assessed by any ageney upon any parcel of property or upon any person as an incident of property
ownership except:
(1)The ad valorem property tax impesed p-ursuant te described in section 1(a) of Article X111 and sections
1(a) and 1(b)of Article XIII A.
(2)Any special non-ad valorem tax that is imposed on all parcels in the iurisdiction at a uniform rate or in
a uniform amount and without regard to the use or ownership of the parcel, except for an exemption or
lower rate based on the age, veteran status, or disability of the owner, and parcels wholly or partially
exempt from property tax pursuant to Article X111, and after receiving a two-thirds vote pursuant to Section
4 of Article XIII A.
(3) Assessments as provided by this article.
(4) 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.
Section 8. Article XIII E of the California Constitution is added to read:
(a)(1) Notwithstanding Article IV, a statute or resolution calling an election to approve a tax imposition,
extension or increase pursuant to Section 3 of Article X111 A, shall be passed by not less than two-thirds of
all members elected to each of the two houses of the Legislature.
(2) The title and summary and ballot label, required for a measure pursuant to the Elections Code, shall
specify:
(i) The type and amount or rate of the tax;
(ii) The annual amount of revenue expected to be derived from the tax,
NO The duration of the tax,• and
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(iv) The use of the revenue from the tax as required in Section 3(b)(2)of Article Xlll A;
(b)(1) A resolution calling an election to approve a tax pursuant to Section 2 of Article X111 C, shall be
approved pursuant to Section 2(d)of Article X111 C.
(2) The title and summary and ballot label or question required for a measure pursuant to the Elections
Code, shall specify:
(i) The type and amount or rate of the tax;
(ii) The annual amount of revenue expected to be derived from the tax,
(iii) The duration of the tax,and
(iv) The use of the revenue from the tax as required in Section 2(g)(2) of Article Xlll C.
(c)(1) Notwithstanding any other provision of this Constitution, after a measure subject to the
requirements of this section has qualified for the ballot by action of a legislative body pursuant to Section
3 of Article XIII A•Section 2 of Article Xlll Q by an elector pursuant to Article II or by a Charter providing for
the initiative power, or Section 6(c) of Article Xlll D, no expenditure of public funds on any public
communication that references the measure by name, or by reference to its subject matter, shall be
permitted with respect to that measure until the certification of the election result for that such measure.
This section shall not prohibit public expenditures for the provision of ballots or other ballot materials
including sample ballots and the State Voter Information Guide provided for in the Elections Code; or to
encourage voters to register to vote or to vote, so long as those expenditures are for communications
directed at the general public and not segments of the population.
(2) Any public official who approves an expenditure of funds in violation of subdivision (c)(1) shall be
personally liable for the amount unlawfully expended in an action brought by the Attorney General, District
Attorney, or a taxpayer.
Section 9. Section 1 of Article XIII is amended to read:
Sec. 1 Unless otherwise provided by this Constitution or the laws of the United States:
(a) All property is taxable and shall be assessed at the same percentage of fair market value.When a
value standard other than fair market value is prescribed by this Constitution or by statute authorized by
this Constitution,the same percentage shall be applied to determine the assessed value.The value to
which the percentage is applied, whether it be the fair market value or not, shall be known for property
tax purposes as the full value.
(b)All property so assessed shall be taxed in proportion to its full value.
(c)All proceeds from the taxation of property shall be collected by the counties and apportioned
according to law to the districts within the counties.
Section 10. Section 32 of Article XIII is amended to read:
Sec.32(a)Any person may bring an action seeking an injunction to prohibit the collection of a tax or exempt
charge alleging that the tax or exempt charge was not lawfully imposed under Section 3 of Article X111 A,
or Sections 2 and 3 of Article Xlll C, within ninety (90) days after enactment of the tax or exempt charge.
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No person shall be required to post a bond to obtain an injunction to prohibit the collection of a tax or
exempt charge pursuant to this section.
(b)Except as provided in paragraph (a), no legal or equitable process shall issue in any proceeding in any
court against this State, any local government,or any officer thereof to prevent or enjoin the collection of
any tax.After payment of a tax claimed to be illegal,an action may be maintained to recover the tax paid,
with interest, in such manner as may be provided by the Legislature.
(c) No judgment in a validation action shall prohibit issuance of an injunction under subdivision (a) or an
action to recover tax paid under subdivision (b) unless the tax or exempt charge was pledged as security
to repay bonds that have already been issued and both the tax or exempt charge and the bonds were the
subject of a validation action brought by the State or local agency.
Section 11. General Provisions
A.This Act shall be liberally construed in order to effectuate its purposes.
B. (1) In the event that this initiative measure and another initiative measure or measures relating to state
or local requirements for the imposition,adoption,creation,or establishment of taxes,charges,and other
revenue measures shall appear on the same statewide election ballot, the other initiative measure or
measures shall be deemed to be in conflict with this measure. In the event that this initiative measure
receives a greater number of affirmative votes, the provisions of this measure shall prevail in their
entirety, and the provisions of the other initiative measure or measures shall be null and void.
(2) Notwithstanding paragraph (1), this initiative measure shall not be deemed to be in conflict with any
other initiative measure that requires statewide voter approval of the creation, increase, extension, or
continued imposition of any tax.
(3) If this initiative measure is approved by the voters but superseded in whole or in part by any other
conflicting initiative measure approved by the voters at the same election, and such conflicting initiative
is later held invalid,this measure shall be self-executing and given full force and effect.
C. The provisions of this Act are severable. If any portion, section, subdivision, paragraph, clause,
sentence, phrase,word, or application of this Act 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 this
Act.The People of the State of California hereby declare that they would have adopted this Act and each
and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not
declared invalid or unconstitutional without regard to whether any portion of this Act or application
thereof would be subsequently declared invalid.
D. If this Act is approved by the voters of the State of California and thereafter subjected to a legal
challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse
to defend this Act,then the following actions shall be taken:
(1) Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code or any other law,the Attorney General shall appoint independent counsel to faithfully
and vigorously defend this Act on behalf of the State of California.
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(2) Before appointing or thereafter substituting independent counsel,the Attorney General shall exercise
due diligence in determining the qualifications of independent counsel and shall obtain written
affirmation from independent counsel that independent counsel will faithfully and vigorously defend this
Act.The written affirmation shall be made publicly available upon request.
(3) A continuous appropriation is hereby made from the General Fund to the Controller, without regard
to fiscal years, in an amount necessary to cover the costs of retaining independent counsel to faithfully
and vigorously defend this Act on behalf of the State of California. j
(4) Nothing in this section shall prohibit the proponents of this Act, or a bona fide taxpayers association
from intervening to defend this Act.
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