6/1/2022
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ORDINANCE NO. 3-23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OAKLEY ADOPTING ZONING TEXT AMENDMENTS TO ARTICLE 12 OF CHAPTER 1 OF TITLE 9 OF THE OAKLEY MUNICIPAL CODE (“SPECIAL LAND USES”) – ADDING THREE
SUBSECTIONS TO ADDRESS DRIVE-THROUGH RESTAURANTS, CARWASHES, AND GAS STATIONS (RZ 04-21)
The City Council of the City of Oakley does ordain as follows:
SECTION 1. Subsection 9.1.1210 of the Oakley Municipal Code, titled “Gasoline Service Stations. – Reserved,” is hereby amended to have the title, “Reserved.” SECTION 2. Subsection 9.1.1236, titled “Drive-Through Restaurants,” is hereby added to the Oakley Municipal Code in its entirety, as follows:
“9.1.1236 Drive-Through Restaurants.
a. Purpose and Intent. It is the purpose of this subsection to specify performance and operational standards for restaurants or food-related uses seeking to incorporate one or more drive-through lanes in association with the proposed use. 1) This subsection shall apply to any use proposed within the City of Oakley that is considered a “Drive-thru Restaurants and Services,” and that is a restaurant or food/drink-related business.
b. Definitions and Meanings.
1) For the purposes of this subsection “Drive-Through” is interchangeable with “Drive-thru” found elsewhere in the Oakley Municipal Code. 2) “Sensitive Uses,” as referenced in this subsection shall mean any Residential or Agricultural designated property, whether occupied or vacant, on the Oakley General Plan Land Use Map, any legal and conforming residential use, or any public or private school with students in any grade ranging from K-12. Residential uses located in non-residential zoning districts and General Plan land use designations are not considered “Sensitive Uses” for the purposes of this subsection. Other uses may be considered as “Sensitive Uses” subject to the discretion of the Community Development Director.
c. Performance Standards.
1) A conditional use permit for a drive-through restaurant use may only be considered for approval if the site for the proposed use is a minimum of
0.7 acres in size after any necessary right of way dedications, or the site is 175
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part of a larger commercial center with contiguous parcels that total at least 0.7 acres in size after any necessary right of way dedications. 2) A conditional use permit for a drive-through restaurant use may only be considered for approval if the proposed use will not result in three or more total number of drive-through restaurants/carwashes for any commercial center of less than five acres in size after any necessary right of way dedications, or a commercial center with contiguous parcels of less than five acres in size after any necessary right of way dedications. 3) A conditional use permit for a drive-through restaurant use may only be considered for approval if the proposed use will not result in four or more total number of drive-through restaurants/carwashes for any commercial center of less than eight acres after any necessary right of way dedications, or a commercial center with contiguous parcels of less than eight acres after any necessary right of way dedications. 4) An application for a proposed drive-through restaurant shall include a traffic analysis that specifically analyzes onsite and nearby pedestrian/bicycle safety and drive-through lane queuing for the purposes of providing recommendations to avoid conflicts between various modes of transportation. The traffic analysis shall also analyze drive-through vehicle queuing and make recommendations to the site planning design that results in avoiding or minimizing negative impacts to the surrounding area on- and off-site, including but not limited to:
i. Blocking access to parking spaces;
ii. Creating conflicts to internal circulation; or
iii. Spill back into adjacent main drive aisles or rights of way causing interference to vehicular, bicycle, or pedestrian flow or reduction in road capacity.
The Community Development Director and/or City Engineer may require the queuing analysis include observation of similar nearby businesses. This analysis is in addition to any Vehicle Miles Traveled (“VMT”) or Level of Service (“LOS”) analysis that may already be required.
5) An application for a proposed drive-through restaurant shall include either a detailed acoustical analysis of the menu board speaker consistent with the proposed site plan, or a detailed specification sheet on the menu board speaker and any sound reducing technologies it may incorporate. All menu board speakers shall function in compliance with the City of Oakley General Plan.
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6) No portion of the drive-through lane or its required queuing as determined in the traffic analysis shall obstruct any drive aisles or off-street parking.
The drive-through shall not take ingress or egress from a local residential road.
7) The entire drive-through lane shall be screened from adjacent street and residential views to a height of at least three feet. Screening devices shall be a combination of berming, hedge and landscape materials, and solid walls as approved by the Community Development Director. 8) Menu boards shall be oriented or screened to avoid direct visibility from adjacent public streets.
9) The speaker box on menu boards shall be oriented away from adjacent residential uses or other commercial uses with an outdoor setting. 10) Pedestrian access to the building either from the parking lot or public right of way shall not cross the drive-through lane at any point between the last queuing area and end of the building facade where the pick-up window is located.
11) Site plans shall be designed so drive-through lanes or regular use queuing areas shall not intersect or interfere with pedestrian access through the parking lot or drive aisles to the main entrance of the associated use from any of the on-site parking spaces for that use.
12) Site plans shall be designed so access to the building from adjacent parcels and public rights of way is accomplished without direct interference with a drive-through or queuing lane. In the event such a design is not achievable, the crossing shall be located a reasonable distance away from any building corners and enhanced with a raised crossing, signage, and an automatic or pedestrian operated warning light to vehicles.
13) Site plans shall be designed so that all pedestrian walkways adjacent to a drive-through lane shall contain a pedestrian barrier to prevent pedestrians from cutting through the drive-through lane. The barrier shall direct the pedestrian to safe areas to exit the walkway.
14) Site plans shall be designed so all driveways with access to public rights of way have pedestrian sidewalks that connect directly to a path that leads to the main building, and that continue into the remainder of the shopping center, if applicable, with marked crossings where appropriate and recommended by the traffic analysis.
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d. Operational Standards.
1) Hours of operation may be limited as a condition of approval in the conditional use permit as necessary to achieve compatibility with adjacent sensitive land uses.
2) The applicant shall prepare and submit an operational plan related to litter control, and/or recycling as a part of the conditional use permit application, subject to the review and approval of the Community Development Director. 3) The applicant shall prepare and submit an operational plan addressing noise, loitering or other potential nuisances that may be caused by employees, patrons, or other citizens while on the premises, subject to the review and approval of the Community Development Director. The operational plan shall include plans to ensure graffiti shall be removed within 48 hours of it being discovered by or reported to the businesses.” SECTION 3. Subsection 9.1.1238, titled “Carwashes,” is hereby added to the Oakley Municipal Code in its entirety, as follows:
“9.1.1238 Carwashes.
a. Purpose and Intent. It is the purpose of this subsection to specify performance and operational standards for carwashes.
1) This subsection shall apply to any carwash use proposed within the City of Oakley, including carwashes ancillary to gas stations, self-service carwashes, stand-alone automated carwashes, and carwash businesses that may include additional detailing whether indoors or under a shade structure.
b. Definitions and Meanings.
1) For the purposes of this subsection “Carwash” may include the types of carwashes listed above. If a part of this subsection only applies to specific type of carwash, it will be explicitly stated as such. Otherwise, the part applies to all types of carwashes.
2) “Sensitive Uses,” as referenced in this subsection shall mean any Residential or Agricultural designated property, whether occupied or vacant, on the Oakley General Plan Land Use Map, any legal and conforming residential use, or any public or private school with students in any grade ranging from K-12. Residential uses located in non-residential zoning districts and General Plan land use designations are not be considered “Sensitive Uses” for the purposes of this subsection. Other uses may be considered as “Sensitive Uses” subject to the discretion of the Community Development Director.
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c. Performance Standards.
1) A conditional use permit for a carwash use may only be considered for approval if the site for the proposed use is a minimum of 0.7 acres in size after any necessary right of way dedications, or the site is part of a larger commercial center with contiguous parcels that total at least 0.7 acres in size after any necessary right of way dedications.
2) A conditional use permit for a carwash use may only be considered for approval if the proposed use will not result in three or more total number of drive-through restaurants/carwashes for any commercial center of less than five acres in size after any necessary right of way dedications, or a commercial center with contiguous parcels of less than five acres in size after any necessary right of way dedications.
3) A conditional use permit for a carwash use may only be considered for approval if the proposed use will not result in four or more total number of drive-through restaurants/carwashes for any commercial center of less than eight acres after any necessary right of way dedications, or a commercial center with contiguous parcels of less than eight acres after any necessary right of way dedications.
4) An application for a proposed carwash shall include a traffic analysis that specifically analyzes onsite and nearby pedestrian/bicycle safety and queuing for the purposes of providing recommendations to avoid conflicts between various modes of transportation. The traffic analysis shall also analyze drive-through vehicle queuing and make recommendations to the site planning design that results in avoiding or minimizing negative impacts to the surrounding area on- and off-site, including but not limited to:
i. Blocking access to parking spaces;
ii. Creating conflicts to internal circulation; or
iii. Causing potential for spill back into adjacent main drive aisles or rights of way causing interference to vehicular, bicycle, or pedestrian flow or reduction in road capacity.
The Community Development Director and/or City Engineer may require the queuing analysis include observation of similar nearby businesses. This analysis is in addition to any Vehicle Miles Traveled (“VMT”) or Level of Service (“LOS”) analysis that may already be required.
5) An application for a proposed carwash shall include a detailed acoustical analysis of noise generated by the use, and confirm that the use complies with the noise thresholds in the City of Oakley General Plan in relation to noise impacts on sensitive uses. If a generally accepted decibel variance 179
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allowance would result in the noise exceeding a threshold, the noise source shall be reduced until the analysis shows the noise, including any decibel variance allowance, falls within the thresholds in the General Plan. 6) There shall be no more than one carwash located within any shopping center or contiguous commercial properties that have internally shared access. In addition, no new carwash shall be proposed within 1,000 feet of an existing carwash as measured between the shortest distance from either the perimeter of the carwash operations or parcel lines, subject to the determination by the Community Development Director.
7) No portion of the required queuing as determined in the traffic analysis shall obstruct any drive aisles or off-street parking.
8) The entire carwash queuing lane shall be screened from adjacent street and residential views to a height of at least three feet. Screening devices shall be a combination of berming, hedge and landscape materials, and solid walls as approved by the Community Development Director. 9) Any speaker box on automated payment machine shall be oriented away from adjacent residential uses or other commercial uses with an outdoor setting.
10) Pedestrian access to the building either from the parking lot or public right of way shall not cross the queuing lane at any point between the automated payment machine and entrance to the carwash. Nor should it be located within 25 feet of the exit of the carwash.
11) Site plans shall be designed so drive-through lanes or regular use queuing areas shall not intersect or interfere with pedestrian access through the parking lot or drive aisles to the main entrance of the associated use from any of the on-site parking spaces for that use.
12) Site plans shall be designed so access to the building from adjacent parcels and public rights of way is accomplished without direct interference with a drive-through or queuing lane. In the event such a design is not achievable, the crossing shall be located a reasonable distance away from any building corners and enhanced with a raised crossing, signage, and an automatic or pedestrian operated warning light to vehicles.
13) Site plans shall be designed so that all pedestrian walkways adjacent to a drive-through lane shall contain a pedestrian barrier to prevent pedestrians from cutting through the drive-through lane. The barrier shall direct the pedestrian to safe areas to exit the walkway.
14) Site plans shall be designed so all driveways with access to public rights of way have pedestrian sidewalks that connect directly to a path that leads to 180
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the main building, and that continue into the remainder of the shopping center, if applicable, with marked crossings where appropriate and recommended by the traffic analysis.
d. Operational Standards.
1) Hours of operation may be limited as a condition of approval in the conditional use permit as necessary to achieve compatibility with adjacent sensitive land uses.
2) The applicant shall prepare and submit an operational plan related to litter control, and/or recycling as a part of the conditional use permit application, subject to the review and approval of the Community Development Director. 3) The applicant shall prepare and submit an operational plan addressing noise, loitering or other potential nuisances that may be caused by employees, patrons, or other citizens while on the premises, subject to the review and approval of the Community Development Director. The operational plan shall include plans to ensure graffiti shall be removed within 48 hours of it being discovered by or reported to the businesses.” SECTION 4. Subsection 9.1.1240, titled “Gas Stations,” is hereby added to the Oakley Municipal Code in its entirety, as follows:
“9.1.1240 Gas Stations.
a. Purpose and Intent. It is the purpose of this subsection to specify performance and operational standards for gas stations.
1) This subsection shall apply to any gas station use proposed within the City of Oakley, whether or not they include a convenience store, carwash, or vacuum stations.
b. Definitions and Meanings.
1) For the purposes of this subsection “Gas Station” is interchangeable with “Gasoline Service Station” found elsewhere in the Oakley Municipal Code. 2) “Sensitive Uses,” as referenced in this subsection shall mean any Residential or Agricultural designated property, whether occupied or vacant, on the Oakley General Plan Land Use Map, any legal and conforming residential use, or any public or private school with students in any grade ranging from K-12. Residential uses located in non-residential zoning districts and General Plan land use designations are not considered “Sensitive Uses” for the purposes of this subsection. Other uses may be considered as “Sensitive Uses” subject to the discretion of the Community Development Director.
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c. Performance Standards.
1) An application for a gas station shall include a traffic analysis that specifically analyzes onsite and nearby pedestrian/bicycle safety for the purposes of providing recommendations to avoid conflicts between various modes of transportation. This analysis is in addition to any Vehicle Miles Traveled (“VMT”) or Level of Service (“LOS”) analysis that may already be required.
2) Any proposed gas station shall be minimum of 500 feet from an existing gas station, as measured between the shortest distance from either the perimeter of the gas station operations or parcel lines, subject to the determination by the Community Development Director, except that any intersection of two arterial streets (as defined in the City’s General Plan) or of any two existing streets each with at least four travel lanes (two in each direction) may have two gas stations on separate corners. An exception to the 500 foot buffer may also be considered if a gas station is located within 1,000 feet of a highway on/off ramp, or part of a larger master development plan consisting of at least 45,000 square feet of building floor area, subject to the approval of the applicable decision-making body. 3) The speakers on gas pumps shall comply with all applicable noise regulations in the Oakley General Plan.
4) Any new gas station shall include a parking location for fueling trucks that does not block or cross over any required drive aisles or off-street parking spaces.
5) Any new gas station shall consider including alternative fuels pumps as an option to customers with alternative fuel vehicles.
d. Operational Standards.
1) Hours of operation for all or any individual component of a gas station (i.e., pumps, convenience store, carwash, or vacuum stations) may be limited as a condition of approval in the conditional use permit as necessary to achieve compatibility with adjacent sensitive land uses.
2) The applicant shall prepare and submit an operational plan related to litter control, and/or recycling as a part of the conditional use permit application, subject to the review and approval of the Community Development Director. 3) The applicant shall prepare and submit an operational plan addressing noise, loitering or other potential nuisances that may be caused by employees, patrons, or other citizens while on the premises, subject to the review and approval of the Community Development Director. The 182
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operational plan shall include plans to ensure graffiti shall be removed within 48 hours of it being discovered by or reported to the businesses.” SECTION 5. California Environmental Quality Act (CEQA).
This project is exempt from environmental analysis under the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that the proposed amendments will not have a significant effect on the environment in that they do not relax any land use requirements or bypass any project’s requirement to comply with CEQA.
SECTION 6. Effective Date and Posting.
This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. The City Clerk shall cause the ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation, or by publishing a summary of the proposed ordinance, posting a certified copy of the proposed ordinance in the City Clerk’s Office at least five (5) days prior to the City Council meeting at which the ordinance is to be adopted, and within fifteen (15) days after its adoption, publishing a summary of the ordinance with the names of the Council Members voting for and against the ordinance.
PASSED AND ADOPTED by the City Council of the City of Oakley this 25th day of April, 2023 by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
APPROVED:
___________________
Aaron Meadows, Mayor
ATTEST:
____________________ ____________________
Libby Vreonis, City Clerk Date
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STAFF REPORT
Agenda Date: ________
Agenda Item: ________
Date: April 25, 2023
To: City Council
From: Joshua McMurray, City Manager
Subject: Consideration to Adopt a Resolution to Oppose Initiative 21-0042A1, the Taxpayer Protection and Government Accountability Act (California Business Roundtable Ballot Measure)
Background
The League of California Cities (Cal Cities), along with a broad coalition including the California Professional Firefighters, SEIU California, California Alliance for Jobs, AFSCME California, and the California Special Districts Association issued a press release announcing strong opposition to a proposed California Business Roundtable ballot measure. This release can be found on the Cal Cities website.
In 2018, the “Tax Fairness, Transparency and Accountability Act” or (AG# 17-0050 Amdt. #1), 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 and its coalition, the measure’s proponents withdrew the initiative from the ballot in June 2018.
On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act or AG# 21-0042A1. 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, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative, which would limit voters’ authority, adopt new and stricter rules for raising taxes and fees, and make it more difficult to hold violators of state and local laws accountable.
Cal Cities has noted that this initiative would do the following:
1. Limit voter authority and accountability
Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures.
Invalidates the Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the 184
same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.
2. Restrict local fee authority to provide local services Impacts franchise fees. Sets new standard for fees and charges paid 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. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”
Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.
3. Restrict authority of state and local governments to issue fines and penalties for violations of law
Requires 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. Restrict local tax authority to provide local services Requires voter approval to expand existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service).
City charters may not be amended to include a tax or fee. New taxes can be imposed only for a specific time period. Taxes adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
All state taxes require majority voter approval.
Prohibits any surcharge on property tax rate and allocation of property tax to state.
5. Other changes
No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.
Fiscal Impact
There is no fiscal impact associated with the requested action.
Recommendation
Staff recommends the City Council adopt a Resolution Expressing Opposition to the Initiative 21-0042A1, the Taxpayer Protection and Government Accountability Act (California Business Roundtable Ballot Measure).
Attachments
1. Draft Resolution
185
2. Initiative 21-0042A1
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Resolution No. XX-23 Page 1 of 2
RESOLUTION NO. XX-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY TO OPPOSE INITIATIVE 21-0042A1, THE TAXPAYER PROTECTION AND GOVERNMENT
ACCOUNTABILITY ACT
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, BE IT RESOLVED that the City Council of the City of Oakley does hereby opposes Initiative 21-0042A.
THEREFORE BE IT FURTHER RESOLVED, that the City of Oakley will join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the State. We direct staff to email a copy of this adopted resolution to the League of California Cities at [email protected].
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Resolution No. XX-23 Page 2 of 2
PASSED AND ADOPTED by the City Council of the City of Oakley this 25th day of April 2023 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
___________________
Aaron Meadows, Mayor
ATTEST:
____ ________
Libby Vreonis, City Clerk Date
188
BELL, McANDREWS & HILTACHK, LLP
Anabel Renteria
Initiative Coordinator
ATTORNEYS AND COUNSEL-ORS AT I.AW
455 C APITO L MALL, S UITE 600
SACRAMENTO, CALIFOE=INIA 95014
(916) 44;a-7757
FAX [916) 44-;a-77 59
www.bmhlaw.com
January 4, 2022
2 1 - 0 0 4 2
RECEIVED
JAN O 4 2022
Office of the Attorney General
State of California
INITIATIVE COORDINATOR
ATTORNEY GENERAL'S OFFICE
PO Box 994255
Sacramento, CA 94244-25550
Re: Initiative 21-0042 - Amendment Number One
Dear Initiative Coordinator:
Pursuant to subdivision (b) of Section 9002 of the Elections Code, enclosed please find Amendment #1 to Initiative No. 21-0042 "The Taxpayer Protection and Government Accountability Act." The amendments are reasonably germane to the theme, purpose or subject of the initiative measure as originally proposed.
I am the proponent of the measure and request that the Attorney General prepare a circulating title and summary of the measure as provided by law, using the amended language.
Thank you for your time and attention processing my request.
Sincerely,
Thomas W.
~ Hiltachk
189
2 1 - 0 0 4 2 Arndt. # /
The Taxpayer Protection and Government Accountability Act [Deleted codified text is denoted in strikeout. 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) Californians are overtaxed. We pay the nation's highest state income tax, sales tax, and gasoline tax. According to the U.S. Census Bureau, California's combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $234 billion in new and higher taxes and fees.
(b) Taxes are only part of the reason for California's rising cost-of-living crisis. Californians pay billions more in hidden "fees" passed through to consumers in the price they pay for products, services, food, fuel, utilities and housing. Since 2010, government revenue from state and local "fees" has more than doubled.
(c) California's high cost of living not only contributes to the state's skyrocketing rates of poverty and homelessness, they are the pushing working families and job-providing businesses out of the state. The most recent Census showed that California's population dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major corporations relocated to other states, not counting thousands more small businesses that were forced to move, sell or close. (d) California voters have tried repeatedly, at great expense, to assert control over whether and how taxes and fees are raised. We have enacted a series of measures to make taxes more predictable, to limit what passes as a "fee," to require voter approval, and to guarantee transparency and accountability. These measures include Proposition 13 (1978), Proposition 62 (1986), Proposition 218 (1996), and Proposition 26 (2010).
(e) Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamstrung by the Legislature, government lawyers, and the courts, making it necessary to pass yet another initiative to close loopholes and reverse hostile court decisions.
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 also intend that all fees and other charges are passed or rejected by the voters themselves or a governing body elected by voters and not 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 ballot1 190
either at the state or local level-to clearly state the type and rate of any tax, how long it will be in effect, and the use of the revenue generated by the tax.
(c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new or increased form of state government revenue, by any name or manner of extraction paid directly or indirectly by Californians, shall be authorized only by a vote of the Legislature and signature of 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 remains local, without changing or superseding existing constitutional provisions contained in Section 1{c) of Article XIII A. (e) In enacting this measure, the voters also additionally intend to reverse loopholes in the legislative twothirds 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, Johnson v. County of Mendocino, Citizens Assn. of Sunset Beach v.
Orange County Local Agency Formation Commission, and Wilde v. City of Dunsmuir.
Section 4. Section 3 of Article XIII A of the California Constitution is 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.
illlJ1l ~ Any change in state statute Jaw which results in any taxpayer paying a new or 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 maiority vote, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Each Act shall include:
(A) 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.
(BJ 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 a separate, stand-alone section. 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 maiority vote. (2) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, including a measure proposed by an elector pursuant to Article II, include:
{A) The type and amount or rate of the tax;
(BJ The duration of the tax: and
2 191
(CJ The use of the revenue derived from the tax.
(c} Any change in state law which results in any taxpayer paying a new or higher exempt charge must be imposed by an act passed by 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.
Ml._fbt As used in this section and in Section 9 of Article II, "tax" means every aA1f levy, charge, or exaction of any kind imposed by the State state law that is not an exempt charge. e1<eept the follo•Ning:
(e) As used in this section. "exempt charge" means only the following:
(1) a el:iarge imposes fer a s1=1eeifie eenefit eonferreEl or pri'+'ilege granteEl aireetly to tl:ie 13ayor tl:iat is not 1=1ro>viaeEl to tl:iose not et:iargeEI, anEI whiel:i aoes not e1<ceeEl tl:ie reasonal3Ie costs to tl:ie State of eonferring the benefit or granting the pri¥ilege to the 1=1a¥OF.
ill {-2+ A reasonable charge irnposeEl 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 rnasonable actual costs to the State of providing the service or product to the payor. f.11 ~ A charge in,poseEl 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 iR'l13oseEl 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, or other monetary el:large including any applicable interest for nonpayment thereot imposed by the judicial branch of government or the State, as a result of a state administrative enforcement agency pursuant to adiudicatorv due process, to punish a violation of law. (6} A levy, charge, assessment, or exaction collected for the promotion of California tourism pursuant to Chapter 1 (commencing with Section 13995) of Part 4.7 of Division 3 of Title 2 of the Government Code. flL~Any tax or exempt charge adopted after January 1, 2022 ~, 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 B'l the begislatuFe anel signea into law ey tl:ie <iio¥ernoF in compliance with the requirements of this section. [gl[.JlJG:} The State bears the burden of proving by a preponEleranee oftl:le 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. ,tR-a-t tl:ie amouRt is RO n,ore tl:ian neeessary to cover the reasonable costs of the go•.•emn,ental actii,•i:t>,• ane 3 192
that the manner in •Nhiel.:i these cests are allecated ts a pa·1er bear a fair er reasenable relatienshi13 ts the 13a·1or's b1:1relens on, or benefits reeei11eel from, the go•.ieFRmental actit.iit'( (2) The retention ofrevenue by, or the payment to. a non-governmental entity ofa levv. 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 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 other sources 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 ofpayor, 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 Jetter, 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, Trustees of the California State University, or the Board of Governors of the California Community Colleges.
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 other sources 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 XIII D assessment. fee, or 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.
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.lfl..W 11General tax" means any tax imposed for general governmental purposes. (d} "Impose" means adopt, enact, reenact, create, establish, collect, increase, or extend. {clJb} "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 fl 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.
{gl_{t} "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. f11L{d} "Special tax" means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.
111 i@} As used in this article, and in Section 9 of Article II, "tax" means every aRV-levy, charge, or exaction of any kind, imposed by a local go,;ernmeRt law that is not an exempt charge., exeept tl=le fellowiRg:
(i) As used in this section, "exempt charge" means only the following:
(1) A cl=large imposeel fer a speeifie beAefit eoAferreel or pri,;ilege graAteel eliFeetl')' to tl=le pa1,ior tl=lat is Rot pre1,•ieleel to these Rot ehargea, aA£l which £lees Rot exeeeel tl=le reaseAable costs to tl=le loeal gm,·ernFAeAt of conferriAg the beAefit or graAting tl:1e pri¥ilege.
ill R} A reasonable charge imposes 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 reasoAable actual costs to the local government of providing the service or product. fl1 WA charge im13ose£l 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.
W {4t A reasonable charge imposeel for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
Ml. fSt A fine, or penalty, or other FAOA@tar,· eharge including any applicable interest for nonpayment thereat imposed by the judicial branch of government or a local government administrative enforcement agency pursuant to adiudicatorv due process, as a res1,1lt of to punish a violation of law. ill -f6t A charge imposed as a condition of property development. No levv, charge, or exaction regulating or related to vehicle miles traveled may be imposed as a condition of property development or occupancy. f.i1 f7t An AssessFAeRts a Rel property relate el fees assessment. fee. or charge imJ;1oseel iA aeeoraanee witl=l the pro¥isio A5 of subject to Article XI 11 D, or an assessment imposed upon a business in a tourism marketing district, a parking and business improvement area, or a property and business improvement district. 5 194
(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.
The local government bears the b1:1rden of proving by a preponderance of the e .. ·ielence that a lew, charge, or other exaction is not a ta1<, that the amo1:1nt is no more than necessaPJ' to cover the reasonable costs of the go•,ernfflental acti•.«ity anel that tJ:ie manner in which those costs are allocateel to a pa•ror bear a fair or reasonable relationship to the pa•ror's blslrdens on, or bene:fits receiveel from, the go1a1ernmental acfa•ity.
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 Jaw go,.·ernment whether proposed by the governing body or by an elector, may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall 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) An•r general tax imposed, el<tended, or increaseel, •.-.iitho1:1t •.·oter approval, lay any local go,.·ernment on or after Janlslary 1, 1995, ana prior ta the effecti,.·e date of this article, shall contin1:1e to be imposed only if appro,.·ea b1• a majority vote of the voters voting in an election OR the issye of the in:iposition, whicl::i election sl::iall be l::ield witl::iin t•Ne 1•ears ef the effectii.ie date of this article and in com13liance with slslbdi\·isien (b}. {El) No local law government. whether proposed by the governing body or by an elector. may impose, eMteRd, er increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. {d) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, include:
(1) The type and amount or rate of the tax;
(2) the duration of the tax; and
(3) The use of the revenue derived from the tax. If the proposed tax is a general tax. the phrase "for general government use" shall be required, and no advisory measure may appear on the same ballot that would indicate that the revenue from the general tax will. could. or should be used for a specific purpose. (e) Only the governing body of a local government. other than an elector pursuant to Article II or the initiative power provided by a charter or statute. 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 6 195
as provided in Section l(i) and the amount or rate of the exempt charge to be imposed. and passed by the governing body. This subdivision shall not apply to charges specified in paragraph (7) of subdivision (i) of Section 1.
ff) 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. (q) Any tax or exempt charge adopted after January 1, 2022, 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.
{h)(1) The focal 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. (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 paid in exchange for a benefit. privilege, allowance, authorization, or asset, shall not be factors 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.
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, 6f charge, or surcharge, including a surcharge based on the value ofpropertv, shall be assessed 13y a Ry ageRC'f upon any parcel of property or upon any person as an incident of property ownership except:
(1) The ad valorem property tax impeseEI p1::1rsYaRt te described in Section 1(a) of Article XIII and Section 1/a) of Article XIII A, and described and enacted pursuant to the voter approval requirement in Section 1/b) Q[Article XII I A.
(2) Any special non-ad valorem tax receiving a two-thirds vote of qualified electors pursuant to Section 4 of Article XIII A, or after receiving a two-thirds vote of those authorized to vote in a community facilities district by the Legislature pursuant to statute as it existed on December 31, 2021. (3) Assessments as provided by this article.
(4) Fees or charges for property related services as provided by this article. 7 196
(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. Sections 1 and 14 of Article XIII are 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 apportioned according to law to the districts within the counties.
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/aw, such state or local property taxes shall be apportioned according to law to the districts within the counties.
Section 9. 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 ofthe other initiative measure or measures shall be null and void. (2) In furtherance of this provision, the voters hereby declare that this measure conflicts with the provisions of the "Housing Affordability and Tax Cut Act of 2022" and "The Tax Cut and Housing Affordability Act," both of which would impose a new state property tax (called a "surcharge") on certain real property, and where the revenue derived from the tax is provided to the State, rather than retained in the county in which the property is situated and for the use of the county and cities and districts within the county, in direct violation of the provisions of this initiative. (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 8 197
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 ofTitle 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. (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. (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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