AGENDA REPORT
Meeting Date: April 12, 2022
Item Number:
To: Honorable Mayor & City Council
From: Cynthia Owens, Policy and Management Analyst
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
OPPOSING A STATE CONSTITUTIONAL BALLOT INITIATIVE
WHICH WOULD LIMIT THE STATE AND LOCAL GOVERNMENTS'
ABILITY TO RAISE REVENUES FOR GOVERNMENT SERVICES
Attachment: 1. Proposed Resolution
2. Ballot Initiative Language
RECOMMENDATION
The Beverly Hills City Council Liaison/Legislative/Lobby Committee (Councilmember Julian Gold and Councilmember John Mirisch) recommend the City Council adopt a resolution opposing Ballot Initiative 21-0042, which would limit the ability of voters and state and local governments to raise revenues for government services (Attachment 1).
INTRODUCTION
The Taxpayer Protection and Government Accountability Act (the “Initiative”), also known as Ballot Initiative 21-0042 and titled “Limits Ability of Voters and State and Local Governments to Raise Revenues for Government Services” by State Attorney General Bonta, which (1) Limits voters’ ability to pass voter-proposed local special taxes by raising vote requirement to two-thirds; (2) Eliminates voters’ ability to advise how to spend revenues from proposed general tax on same ballot as the proposed tax; (3) Expands definition of “taxes” to include certain regulatory fees, broadening application of tax approval requirements amongst other impacts for state and local governments to raise revenues for government services.
DISCUSSION
In 2018, the “Tax Fairness, Transparency and Accountability Act”, was being circulated to qualify for the November 2018 ballot. This initiative would have drastically limited local revenue authority. Through the successful work and advocacy of the League of California Cities (“Cal Cities”) and its coalition, the measure’s proponents withdrew the initiative from the ballot in June 2018.
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Meeting Date: April 12, 2022
On January 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act. This measure is far more detrimental to cities than the measure filed in 2018, because it would decimate vital local and state services to the benefit of wealthy corporations.
Cal Cities has joined a broad coalition that includes the California Professional Firefighters, SEIU California, California Alliance for Jobs, AFSCME California, and the California Special Districts Association in strong opposition to this proposed ballot measure from the California Business Roundtable. The proponents have until June 1, 2022 to gather 997,139 valid signatures to quality this ballot initiative for the November 2022 election.
As drafted, the ballot initiative would:
1) Prohibit local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures. Additionally, it would subject any initiative to the same rules as taxes placed on the ballot by a city council. 2) Set new standards for fees and charges for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. The rental and sale of local government property must be “reasonable”, which must be proved by “clear and convincing” evidence.
3) Require voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. 4) Require voter approval to expand existing taxes (e.g. TOT, Utility User Tax, Use Taxes) to newly annexed areas or to new utility service. 5) Prevent the amendment of city charters to include a tax or a fee 6) Specify new taxes can only be imposed for a specific period of time. 7) Prohibits any surcharge on property tax rate and allocation of property tax to state.
8) Requires all state taxes to be approved by a majority of voters rather than enacted by the state legislature
9) Prohibits the collection of fees, charges, or exactions regulating vehicle miles traveled from being imposed as a condition of property development or occupancy.
On February 3, 2022, City staff received an email from Cal Cities requesting each city consider adopting a resolution to demonstrate how harmful this ballot initiative would be to their community.
On March 8, 2022, the Beverly Hills City Council Liaison/Legislative/Lobby Committee (Councilmember Julian Gold and Councilmember John Mirisch) recommended the City Council consider adopting a resolution opposing this ballot initiative.
FISCAL IMPACT
Per the State’s Legislative Analyst Office, local governments generally face greater restrictions to raising revenue than the state. By expanding the definition of taxes and restricting administrative changes to fees, this initiative would make it somewhat harder for local governments to raise revenue. Consequently, future local tax and fee revenue Meeting Date: April 12, 2022
could be lower than they would be otherwise. The extent to which revenues would be lower is unknown, but fees could be more impacted. The actual impact on local government revenue would depend on various factors, including future decisions by the courts, local governing bodies, and voters.
Nancy Hunt Coffey,
Assistant City Manager
Approved By
Attachment 1
B0785-0001\2648565v1.doc 1
RESOLUTION NO. 22-R-_______
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
OPPOSING A STATE CONSTITUTIONAL BALLOT INITIATIVE WHICH
WOULD LIMIT THE STATE AND LOCAL GOVERNMENTS' ABILITY TO
RAISE REVENUES FOR GOVERNMENT SERVICES
WHEREAS, the City of Beverly has historically taken positions on ballot initiatives of interest to Beverly Hills including:
1) Adoption of Resolution No. 21-R-13375 supporting the Brand-HuangMendoza Tripartisan Land Use Initiative, which would amend the Constitution of the state of California to preserve local control over zoning and land use should it qualify for the November 2022 election and be passed by the voters of the state of California and 2) Adoption of Resolution No. 18-R-13178 supporting the Reducing Crime and Keeping California Safe Act of 2018 which would have reclassified crimes that under Proposition 57 qualify as “non-violent” crimes, reinstated DNA collection for certain misdemeanors, reformed theft laws, and reformed the parole system had it been passed by the voters of the state of California in November 2020; and WHEREAS, the City’s Legislative Platform adopted by the City Council includes the following statements
1) Oppose any legislation that would undermine voter-approved initiatives to guarantee ongoing revenue sources for the City of Beverly Hills; 2) Oppose legislation that would preempt the City’s authority over local taxes and fees; and
3) Oppose any efforts by the state or county to alter the fee structure established by cities to recover costs associated with developer impacts or other projects ; and DocuSign Envelope ID: 0C467211-4B22-4E30-BA45-342CA819FB63 B0785-0001\2648565v1.doc 2
WHEREAS, an association representing California’s wealthiest corporations is behind a deceptive proposition aimed for the November 2022 statewide ballot; and WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources; and
WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and WHEREAS, the measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and
WHEREAS, the measure would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities.
NOW, THEREFORE, the Council of the City of Beverly Hills does hereby resolve as follows:
Section 1. The City of Beverly Hills strongly opposes all attempts to undermine voter-approved initiatives to guarantee ongoing revenue sources for the City of Beverly Hills.
DocuSign Envelope ID: 0C467211-4B22-4E30-BA45-342CA819FB63 B0785-0001\2648565v1.doc 3
Section 2. The City of Beverly Hills opposes any legislation or ballot initiative that would preempt the City’s authority over local taxes and fees or the ability to alter the City’s fee structure to recover costs associated with developer impacts or other projects.
Section 3. The City of Beverly Hills firmly opposes Ballot Initiative 21-0042A1 as it would limit the ability of state and local governments’ ability to raise revenues for government services.
Section 4. The City Council of the City of Beverly Hills directs staff to provide a copy of this adopted resolution to the League of California Cities.
Section 5. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and her certification to be entered in the Book of Resolution of the Council of this City.
Adopted:
LILI BOSSE
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS CONTENT:
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
DocuSign Envelope ID: 0C467211-4B22-4E30-BA45-342CA819FB63 Certificate Of Completion
Envelope Id: 0C4672114B224E30BA45342CA819FB63 Status: Sent Subject: Please DocuSign: Resolution_Ballot Initiative - Limit for state and local government fees.DOC Source Envelope:
Document Pages: 3 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Cindy Owens
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
4/6/2022 6:00:57 PM
Holder: Cindy Owens
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Laurence S. Wiener
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Cynthia L Owens
[email protected]
Policy & Management Analyst
City of Beverly Hills
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George Chavez
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Lili Bosse
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Attachment 2