CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Tamara S. Letourneau, City Manager
DATE: April 16, 2024
SUBJECT: Adoption of Resolution No. 2024-1470, Opposing ACA 1 Local Government Financing Voter Approval; and, Adoption of Resolution No. 2024-1471, Opposing ACA 13 Voting Thresholds
RECOMMENDATION
Mayor Jennings and Council Member Gennawey recommend that the City Council:
1. Adopt Resolution No. 2024-1470, Opposing ACA 1 Local Government Financing Voter Approval;
2. Adopt Resolution No. 2024-1471, Opposing ACA 13 Voting Thresholds; and,
3. Direct the Mayor to send a letter of opposition for ACA 1 and ACA 13 on behalf of the City Council to the Cal Cities Board of Directors.
BACKGROUND
In the upcoming General Election, California Voters will have the opportunity to vote on Assembly Constitutional Amendment 1 (ACA 1), Local Government Financing: Affordable Housing and Public Infrastructure: Voter Approval; and, Assembly Constitutional Amendment 13 (ACA 13), Voting Thresholds. Both ACA 1 and ACA 13 have qualified as Statewide Ballot Measures for the November 5, 2024, General Election and are awaiting a title and ballot summary from the Attorney General's Office.
ANALYSIS
This item was placed on the agenda at the request of Mayor Jennings and Council Member Gennawey.
ACA 1 - Local Government Financing Voter Approvals
Under current law, the California Constitution requires a two-thirds vote in cities, counties, and special districts for both general obligation bonds and special taxes to be approved.
These same requirements were also applied to school districts, community college districts, or county offices of education until Proposition 39 was passed by California voters in 2000. Proposition 39 amended the California Constitution, decreasing the two- thirds approval requirements to 55 percent for school districts, community college districts, or county offices of education to issue general obligation bonds for the construction or rehabilitation of school facilities.
If approved by California voters, ACA 1 (Attachment A) would allow cities, counties, and special districts to lower the necessary voter threshold from a two-thirds supermajority to 55 percent to approve local general obligation bonds and special taxes when proposed specifically for the construction, reconstruction, rehabilitation, or the replacement of public infrastructure, affordable housing, or supportive housing. If approved, ACA 1 would provide local governments with the same voting threshold requirements as school districts, community college districts, or county offices of education.
ACA 1, additionally, outlines requirements for voter protection and financial accountability, including a requirement that the:
• Proceeds from the sale of the bonds be used only for specified purposes, not for any other purpose, including employee salaries and other operating expenses. • Proceeds from the sale of the bonds can only be spent on projects and programs that serve the local government's jurisdiction or special district. • Specific local program or ordinance through which projects will be funded and a certification that the local government or special district has evaluated alternative funding sources.
• Local government or special district conduct an annual, independent performance audit and independent financial audit of the proceeds until all of those proceeds have been expended for the public infrastructure or affordable housing projects to ensure the funds have been expended pursuant to the local program or ordinance. • The above audits must be posted in a place easily accessible to the public and submitted to the California State Auditor for review.
• Local government or special district appoint a citizens' oversight committee to ensure bond proceeds are expended only for the purposes described in the measure approved by the voters and that members of the oversight committee receive educational training about bonds and fiscal oversight. • Entity owned or controlled by a local official that votes on whether to put a proposition on the ballot pursuant to this section will be prohibited from bidding on any work funded by the proposition.
Resolution No. 2024-1470 (Attachment B) for the City Council's consideration expresses the City's opposition to ACA 1.
According to the author, Assemblymember Aguiar-Curry, ACA 1 will provide local governments with realistic financing options to fund an increase in affordable housing supply and address the numerous local public infrastructure challenges cities, counties, and special districts face. The California Taxpayers Association, in opposition to ACA 1, argues the measure will increase housing costs and cost of living, increase costs for key sectors of the economy, erode taxpayer safeguards, and promote a flawed and regressive tax structure.
ACA 13 - Voting Thresholds
Under current law, the California Constitution provides that a proposed constitutional amendment and a statewide initiative measure each take effect only if approved by a majority of the votes cast on the amendment or measure. ACA 13 (Attachment C) would require any constitutional amendment proposed by initiative, that increases a voter approval threshold for future measures to be approved by the same proportion of votes cast as the measure would require. In short, ACA 13 requires any initiative that increases voter approval thresholds also be approved at that same higher rate.
ACA 13 additionally clarifies the right of local government to place advisory questions on the ballot asking voters their opinions on issues. The measure specifies that an advisory question is approved only if a majority of the votes cast on the question are in favor.
Resolution No. 2024-1471 (Attachment D) for the City Council's consideration expresses the City's opposition to ACA 13.
According to the author, Assemblymember Ward, ACA 13 will retain the will of the majority of voters to make their voices heard on constitutional amendments proposed by initiative and protect voters' ability to advise their elected officials via local advisory questions. The California Business Roundtable, in opposition to ACA 13, argues that the initiative process is eroded by ACA 13, diminishing citizens to bypass the usual legislative channels and bring about change that deeply matters to them.
ALTERNATIVE CONSIDERED
The City Council may provide additional direction to staff.
FISCAL REVIEW
There is no fiscal impact as a result of this report.
LEGAL REVIEW
The City Attorney's office has approved this report and Resolution No. 2024-1470 (Attachment A) and Resolution No. 2024-1471 (Attachment B) as to form.
CONCLUSION
Mayor Jennings and Council Member Gennawey recommend that the City Council:
1. Adopt Resolution No. 2024-1470, Opposing ACA 1 Local Government Financing Voter Approval; and,
2. Adopt Resolution No. 2024-1471, Opposing ACA 13 Voting Thresholds;
3. Direct the Mayor to send a letter of opposition for ACA 1 and ACA 13 on behalf of the City Council to the Cal Cities Board of Directors.
Samara S Letousan LacKnife
Tamara S. Letourneau Scott C. Smith
City Manager City Attorney
Kenn x. O'Comon
Kevin X. O'Connor
Management Assistant
Attachments:
A. ACA 1 Local Government Financing Voter Approval Ballot Measure Text B. Resolution No. 2024-1470
C. ACA 13 Voting Thresholds Ballot Measure Text
D. Resolution No. 2024-1471
ATTACHMENT - A
ACA 1 Local Government Financing Voter Approval Ballot Measure Text RC 173
Assembly Constitutional Amendment No. 1
Adopted in Assembly September 6, 2023
She Parke
Chief Clerk of the Assembly
Adopted in Senate September 14, 2023
Bewilt Men
Acting Secretary of the Sepate
This resolution was received by the Secretary of State this Zoth day of September, 2023, at ll
ơ'clock Q..m.
рони
Deputy Secretary of State
ACA 1 -2-
RESOLUTION CHAPTER
Assembly Constitutional Amendment No. 1—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Sections 1 and 4 of Article XIII A thereof, by amending Section 2 of, and by adding Section 2.5 to, Article XIII C thereof, by amending Section 3 of Article XIIID thereof, and by amending Section 18 of Article XVI thereof, relating to local finance.
LEGISLATIVE COUNSEL'S DIGEST
ACA 1, Aguiar-Curry. Local government financing: affordable housing and public infrastructure: voter approval.
(1) The California Constitution prohibits the ad valorem tax rate on real property from exceeding 1% of the full cash value of This measure would create an additional exception to the 1% limit that would authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, including downpayment assistance, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, city and county, or special district, as applicable, and the proposition includes specified accountability requirements. The measure would prohibit a city, county, city and county, or special district from placing a proposition on the ballot pursuant to these provisions if the voters have previously approved a proposition pursuant to these provisions or the below special tax provisions until all funds from the previous proposition are committed to programs and projects listed in the specific local program or ordinance, as described. The measure, subject to certain vote thresholds, would authorize the Legislature to enact laws establishing additional accountability measures and laws for the downpayment assistance programs authorized by the measure, as specified. The measure would specify that these provisions apply to any city, county, city and county, or special district measure 94 - 3 - ACA 1
imposing an ad valorem tax to pay the interest and redemption charges on bonded indebtedness for these purposes that is submitted at the same election as this measure.
(2) The California Constitution conditions the imposition of a special tax by a local government upon the approval of ⅓ of the voters of the local government voting on that tax.
This measure would authorize a local government to impose, extend, or increase a sales and use tax or transactions and use tax imposed in accordance with specified law or a parcel tax for the purposes of funding the construction; reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, including downpayment assistance, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by a majority vote of the membership of the governing board of the local government and by 55% of its voters voting on the proposition and the proposition includes specified accountability requirements. The measure would prohibit a local government from placing a proposition on the ballot pursuant to these provisions if the voters have previously approved a proposition pursuant to these provisions or the above ad valorem tax provisions until all funds from the previous proposition are committed to programs and projects listed in the specific local program or ordinance, as described. The measure, subject to certain vote thresholds, would authorize the Legislature to enact laws establishing additional accountability measures and laws for the downpayment assistance programs authorized by the measure, as specified. This measure would also make conforming changes to related provisions. The measure would specify that these provisions apply to any local measure imposing, extending, or increasing a sales and use tax, transactions and use tax, or parcel tax for these purposes that is submitted at the same election as this measure. (3) The California Constitution prohibits specified local government agencies from incurring any indebtedness exceeding in any year the income and revenue provided in that year, without the assent of 3 of the voters and subject to other conditions. In the case of a school district, community college district, or county office of education, the California Constitution permits a proposition for the incurrence of indebtedness in the form of general obligation bonds for the construction, reconstruction, 94 ACA 1 - 4 -
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, to be adopted upon the approval of "55% of the voters of the district or county, as appropriate, voting on the proposition at an election.
This measure would expressly prohibit a special district, other measure would also similarly require the approval of 55% of the voters of the city, county, city and county, or special district, as applicable, to incur bonded indebtedness, exceeding in any year the income and revenue provided in that year, that is in the form of general obligation bonds issued to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing projects, if the proposition proposing that bond includes specified accountability requirements. The measure would specify that this 55% threshold applies to any proposition for the incurrence of indebtedness by a city, county, city and county, or special district for these purposes that is submitted at the same election as this measure.
(4) This measure would deem another measure on the same statewide election ballot relating to state or local requirements for the imposition, adoption, creation, or establishment of taxes, charges, and other revenue measures in conflict with it and would make the other measure null and void if this measure receives more affirmative votes.
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2023-24 Regular Session commencing on the fifth day of December 2022, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:
First—That Section 1 of Article XIII A thereof is amended to read:
SECTION 1. (a) The maximum amount of any ad valorem
tax on real property shall not exceed 1 percent of the full cash value of that property. The 1 percent tax shall be collected by the 94 - 5- ACA 1
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 (1) Indebtedness approved by the voters before July 1, 1978. 2) Bonded indebtedness to fund the acquisition or improvemen f real property approved on or after July 1, 1978, by two-third 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 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 this paragraph, 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, 94 ACA 1 - 6
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.
The administrative cost of the city, county, city and county, or special district executing the projects and programs of the proposition shall not exceed 5 percent of the proceeds from the sale of the bonds.
(ii) A requirement that the proceeds from the sale of the bonds only be spent on projects and programs that serve the jurisdiction of the city, county, city and county, or special district. (iii) The specific local program or ordinance through which projects will be funded and a certification that the city, county, city and county, or special district has evaluated alternative funding sources.
(iv) 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 pursuant to the local program or ordinance specified in clause (iii).
(v) 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.
(vi) A requirement that the city, county, city and county, or pecial district post the audits required by clauses (iv) and (V) i i manner that is easily accessible to the public
94 -7- ACA 1
(vii) A requirement that the audits required by clauses (iv) and (v) will be submitted to the California State Auditor for review. (vili) (I) 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.
(II) Members appointed to an oversight committee established pursuant to subclause (I) shall receive educational training about bonds and fiscal oversight.
(ix) A requirement that an entity owned or controlled by a local official that votes on whether to put a proposition on the ballot pursuant to this section will be prohibited from bidding on any work funded by the proposition.
(B) Notwithstanding any other law, if the voters of the local government have previously approved a proposition pursuant to this paragraph or Section 2.5 of Article XIII C, the local government shall not place a proposition on the ballot pursuant to this section until all funds from the previous proposition are committed to programs and projects listed in the proposition's specific local program or ordinance described in clause (iii) of subparagraph (A) or subparagraph (C) of paragraph (2) of - subdivision (a) of Section 2.5 of Article XIII C, as applicable. (C) The Legislature may, by two-thirds vote, enact laws establishing accountability measures in addition to those listed in subparagraph (A), provided such laws are consistent with the purposes and intent of this paragraph.
(D) The Legislature may, by majority vote, enact laws for the downpayment assistance programs established pursuant to this paragraph, provided that those laws further the purposes of this paragraph.
(E) For purposes of this paragraph:
(i) (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 extremely low, very low, low-, or moderate-income households, as those terms are defined in state law. Affordable housing may include capitalized operating reserves, as the term is defined in state law.
94 ACA 1 -8-
(II) "Affordable housing" shall also include downpayment assistance programs.
(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 protection of 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, police, or sheriff personnel.
(XII) Public fibrary 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, a regional transportation commission, 94 -9- ACA 1
and an association of governments, except that "special district" does not include a school district, redevelopment agency, or successor agency to a dissolved redevelopment agency.
(F) 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 or those purposes described in this paragraph that is submitted a he same election as the measure adding this paragraph
(c) (1) Notwithstanding any other provisions of law or of this Constitution, a school district, community college district, or county office of education may levy a 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:
SEC. 4. Except as provided by Section 2.5 of Article XIII C, a city, county, or special district, by a two-thirds vote of its voters voting on the proposition, may impose a special tax within that city, county, or special district, except an ad valorem tax on real property or a transactions tax or sales tax on the sale-of real property within that city, county, or special district.
Third-That Section 2 of Article XIII C thereof is amended to read:
SEC. 2. Notwithstanding any other provision of this
Constitution:
(a) Any tax imposed by a local government 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) 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 is not 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.
94 ACA 1 - 10 —
(c) Any general tax imposed, extended, or increased, without voter approval, by any local government on or after January 1, 1995, and before the effective date of this article, may continue to be imposed only if that general tax is approved by a majority vote f the voters voting in an election on the issue of the imposition which election shall be held no later than November 6, 1996, an in compliance with subdivision (b).
(d) 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 is not 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. The administrative cost of the 94 -11- ACA 1
local government executing the projects and programs funded by the proposition shall not exceed 5 percent of the proceeds of the tax.
(B) A requirement that the proceeds of the tax only be spent on projects and programs that serve the jurisdiction of the local government.
(C) The specific local program or ordinance through which projects will be funded and a certification that the local government has evaluated alternative funding sources.
(D) A requirement that the local government conduct an annual, independent performance audit to ensure that the proceeds of the special tax have been expended pursuant to the local program or ordinance specified in subparagraph (C).
(E) A requirement that the local government conduct an annual, independent financial audit of the proceeds from the tax during the lifetime of that tax.
(F) A requirement that the audits required by subparagraphs (D) and (E) will be submitted to the California State Auditor for review.
(G) A requirement that the local government post the audits required by subparagraphs (D) and (E) in a manner that is easily accessible to the public.
(H) (i) 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.
(ii) (I) A requirement that members appointed to an oversight committee established pursuant to clause (i) receive educational training about local taxation and fiscal oversight.
(I) A requirement that an entity owned or controlled by a local official that votes on whether to put a proposition on the ballot pursuant to this section will be prohibited from bidding on any work funded by the proposition.
(3) The Legislature may, by two-thirds vote, enact laws establishing accountability measures in addition to those listed in paragraph (2), provided such laws are consistent with the purposes and intent of this section.
(b) Notwithstanding any other law, if the voters of the local government have previously approved a proposition pursuant to this section or paragraph (4) of subdivision (b) of Section 1 of 94 ACA 1 - 12 -
Article XIII A, the local government shall not place a proposition on the ballot pursuant to this section until all funds from the revious proposition are committed to programs and projects liste n the specific local program or ordinance described i
subparagraph (C) of paragraph (2) of subdivision (a) of this section or clause (il) of subparagraph (A) of paragraph (4) of subdivision (b) of Section 1 of Article XIII A.
(c) The Legislature may, by majority vote, enact laws for the downpayment assistance programs established pursuant to this section, provided that those laws further the purposes of this section.
(d) For purposes of this section, the following terms have the following meanings:
(1) (A) "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 extremely low, very low, low-, or moderate-income households, as those terms are defined in state law. Affordable housing may include capitalized operating reserves, as the term is defined in state law.
(B) "Affordable housing" shall also include downpayment assistance programs.
(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 community hermanity so portand ohn possible s as ciated facilities, if those facilities are used to provide services to housing residents.
94 - 13- ACA 1
(4) "Local government" has the same meaning as provided in subdivision (b) of Section 1 of this article and specifically includes a transit district, a regional transportation commission, and an association of governments.
(5) "Public infrastructure" shall include, but is not limited to, the projects that provide any of the following:
(A) Water or protection of 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 (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, police, or sheriff personnel.
(L) Public library facilities.
(e) 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. (a) An agency shall not assess a tax, assessment, fee, or charge 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 t lection 4 of Article XIII A or receiving a 55-percent approva pursuant to Section 2.5 of Article XIII C
94 ACA 1 - 14-
(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 are not 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) 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 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 that is authorized to incur indebtedness for public school purposes, any proposition for the incurrence of indebtedness in the form of general obligation bonds for the purpose of repairing, reconstructing, or replacing public school buildings determined, in the manner prescribed by law, to be structurally unsafe for school use, shall be adopted upon the approval of a majority of the voters of the public entity voting on the proposition at 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 40 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), any proposition for the incurrence of indebtedness in the form of general obligation bonds for the 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 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 to a 94 - 15 — ACA 1
proposition for the incurrence of indebtedness in the form of general obligation bonds for the purposes specified in this subdivision only it the proposition meets all of the accountabilit requirements of paragraph (3) or (4) of subdivision (b), as appropriate, of Section 1 of Article XIII A.
(2) The amendments made to this subdivision by the measure 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 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.
Seventh—In the event that this measure and another 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 measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void.
94 FILED
in the office of the Secretary of State
of the State of California
SEP 2 0 2023
By_ cretary of State
Attest:
Secretary of State
ATTACHMENT - B
Resolution No. 2024-1470
RESOLUTION NO. 2024-1470
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
OPPOSING ASSEMBLY CONSTITUTIONAL AMENDMENT 1
WHEREAS, in 1978, California voters amended the California Constitution by ›assing Proposition 13 ("Proposition 13"), an initiative prohibiting the ad valorem tax rate on real property from exceeding one percent (1%) of the full cash value of the property. subject to certain exceptions;
WHEREAS, Proposition 13 additionally prohibited any city, county, or special district from imposing a special tax unless approved by a two-thirds majority vote of the voters in that jurisdiction, subject to certain exceptions; WHEREAS, proposed Assembly Constitutional Amendment 1 ("ACA 1") would amend the California Constitution to create additional exceptions to Proposition 13 by lowering the two-thirds voter threshold to only fifty-five percent (55%) for local jurisdictions to levy an ad valorem tax on real property to pay for bonds issued by the local jurisdiction to fund public infrastructure, affordable housing, downpayment assistance, and permanent supportive housing for persons at risk of chronic homelessness, or the acquisition or lease of real property for such purposes; WHEREAS, reducing the protections of Proposition 13 will result in overall higher taxes and makes home ownership less affordable; and
WHEREAS, the City of Laguna Niguel opposes ACA 1 due to the additional exceptions it would create to the taxpayer protections enshrined in the California Constitution by Proposition 13.
NOW, THEREFORE, the City Council of the City of Laguna Niguel resolves as follows:
Section 1: The City Council hereby formally opposes Assembly Constitutional Amendment 1 and reaffirms its commitment to protecting taxpayers.
Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.
Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
PASSED, APPROVED AND ADOPTED this 16" day of April, 2024.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
ATTACHMENT - C
ACA 13 Voting Thresholds Ballot Measure Text
Re 176
Assembly Constitutional Amendment No. 13
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Adopted in Assembly September 14, 2023
The Parker
Chief Clerk of the Assembly
23 Juta
Secretary of the Senate
This resolution was received by the Secretary of State this 2nd day of November, 2023, at 10
o'clock a.M.
This Mill
Deputy Secretary of State
ACA 13 -2-
RESOLUTION CHAPTER -
Assembly Constitutional Amendment No. 13—A resolution to propose to the people of the State of Calitornia an amendment to the Constitution of the State, by amending Section 10 of, and adding Section 10.5 to, Article II thereof, and adding Section 7.8 to Article XI thereof, relating to voting.
LEGISLATIVE COUNSEL'S DIGEST
ACA 13, Ward. Voting thresholds.
The California Constitution provides that a proposed
constitutional amendment and a statewide initiative measure each take effect only if approved by a majority of the votes cast on the amendment or measure.
This measure would further provide that an initiative measure that includes one or more provisions that would amend the Constitution to increase the voter approval requirement to adopt any state or local measure would be approved by the voters only it the proportion of votes cast in favor of the initiative measure is qual to or greater than the highest voter approval requiremen hat the initiative megsure would impose. The measure woul specify that this voter approval requirement would apply to statewide initiative measures that appear on the ballot on or after January 1, 2024.
California Constitution also permits initiative and
referendum powers to be exercised by the voters of each city or county under procedures provided by the Legislature.
This measure would expressly authorize a local governing body to hold an advisory vote concerning any issue of governance for he purpose of allowing voters within the jurisdiction to voice thei pinions on the issue. The measure would specify that an advisor question is approved only if a majority of the votes cast on the question are in favor.
This measure would further declare that its provisions are severable and that if any provision is held invalid, the other provisions of the act remain valid, as specified.
95 -3- ACA 13
WHEREAS, In an era of special interests and others attempting WHEREAS, Initiative measures proposing to amend the
onstitution to increase the vote requirement above a majoril ote to pass other state and local measures violate the principle o majority rule; and
WHEREAS, Citizens have a substantial interest in voicing their opinions on issues of local governance and must be allowed to approve local advisory measures by majority vote; and
WHEREAS, The provisions of this measure are not intended to reverse or invalidate provisions of the Constitution in effect before January 1, 2024, including the provisions of Proposition 13 of 1978; and
WHEREAS, The purpose of this measure is to do all of the following:
(a) Retain the majority vote requirement to pass statewide initiative statutes and referenda;
(b) Provide that any proposed initiative measure that would amend the Constitution to increase the voter approval requirement to pass other state or local measures is effective only if the initiative is approved by the highest vote requirement it imposes on other measures;
(c) Constitutionally authorize local governments to submit questions to voters asking for their opinion on issues of governance; now, therefore, be it
Resolved, That this measure shall be known, and may be cited, as the Protect and Retain the Majority Vote Act; and be it further Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2023-24 Regular Session, commencing on the fifth day of December 2022,
two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended as follows:
First--That Section 10 of Article II thereof is amended to read:
Sec. 10. (a) An initiative statute or referendum approved by the electors pursuant to Section 10.5 takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on, but the measure may 95 ACA 13 -4-
provide that it becomes operative after its effective date. If a referendum petition is filed against a part of a statute, the remainder of the statute shall not be delayed from going into effect. (b) It provisions of two or more measures approved at the same election conflict, the provisions of the measure receiving the highest number of affirmative votes shall prevail.
(c) The Legislature may amend or repeal a referendum statute.
The Legislature may amend or repeal an initiative statute by another statute that becomes effective only when approved by the electors unless the initiative statute permits amendment or repeal without the electors approval.
(d) Before circulation of an initiative or referendum petition for signatures, a copy shall be submitted to the Attorney General who shall prepare a title and summary of the measure as provided by law.
(e) The Legislature shall provide for the manner in which a petition shall be circulated, presented, and certified, and the manner in which a measure shall be submitted to the electors.
Second--That Section 10.5 is added to Article II thereof, to read:
Sec. 10.5. (a) Except as provided in subdivision (b), a statewide initiative statute or referendum is approved if a majority of the votes cast on the measure are in favor.
(b) Notwithstanding Section 4 of Article XVIII or any other provision of the Constitution, an initiative measure that include ne or more provisions that amend the Constitution to increase th voter approval requirement to adopt any state or local measure is proved by the voters only it the proportion of votes cast in fav‹ f the initiative measure is equal to or greater than the highe voter approval requirement that the initiative measure would impose for the adoption of any state or local measure.
(c) This section applies to all statewide initiative measures submitted to the electors on or after January 1, 2024, including measures that appear on the ballot at the same election at which the measure adding this section is approved by the electors.
Third —That Section 7.8 is added to Article XI thereof, to read:
stature shall any ele ourse to procedures that thr
Legislature shall provide
advisory vote concerning any issue of governance for the purpose of allowing voters within the jurisdiction to voice their opinions 95 - 5- ACA 13
on the issue. An advisory question is approved only if a majority of the votes cast on the question are in favor. The results of the advisory vote shall in no manner be controlling on the sponsoring local governing body.
Fourth--The provisions of this measure are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase word, or application 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 this measure. The people of the State of California hereby declare that they would have adopted this measure 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 measure or application thereof would be subsequently declared invalid. 95 FILED
in the office of the Secretary of State
of the State of California
NOV 02 2023
By_
Deputy Secretary of State
Attest:
Secretary of State
ATTACHMENT - D
Resolution No. 2024-1471
RESOLUTION NO. 2024-1471
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, OPPOSING
CALIFORNIA CONSTITUTIONAL AMENDMENT 13 (VOTING THRESHOLDS) WHEREAS, the California Constitution requires a simple majority vote to adopt a statewide ballot initiative;
WHEREAS, Assembly Constitutional Amendment 13 ("ACA 13") proposes to change the California Constitution to impose a higher vote threshold for certain types of amendments to the California Constitution proposed by citizens via a ballot initiative; WHEREAS, ACA 13 raises the voter approval requirement for those citizen- proposed ballot initiatives, making it more difficult to pass amendments to the California Constitution that would limit the ability to increase taxes; WHEREAS, ACA 13 is a direct attack on efforts to protect taxpayers from additional tax increases;
WHEREAS, in 1978, California voters overwhelmingly adopted Proposition 13 ("Proposition 13") to provide a check on local governments' taxing authority and to ensure a greater representative voice for those who would be taxed; WHEREAS, the City Council for the City of Laguna Niguel objects to burdening its citizens with increased taxes, especially at a time when the cost-of-living crisis in California is driving residents to leave California at a higher rate than at any time in our state history;
WHEREAS, the City Council opposes actions that would change or weaken the protections enshrined by Proposition 13 of 1978 and other Constitutional provisions that protect taxpayers;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Laguna Niguel as follows:
Section 1. The City Council does hereby oppose Assembly Constitutional Amendment 13 because it increases the voter approval requirement tor those citizen- proposed ballot initiatives that have the effect of limiting the ability to raise taxes, thereby weakening the protections of Proposition 13.
Section 2. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.
Section 3. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4. The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
PASSED, APPROVED AND ADOPTED this 16th day of April, 2024.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin, City Clerk