PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.F
SUBJECT/TITLE:
OPPOSITION TO STATE BALLOT INITIATIVE 21-0042A1, THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT
RECOMMENDATION:
Adopt a Resolution to Oppose State Ballot Initiative 21-0042A1, the “Taxpayer Protection and Government Accountability Act.”
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 on February 2, 2022 announcing strong opposition to a proposed California Business Roundtable ballot measure.
The City’s adopted Legislative Platform does not provide explicit direction on this matter, and therefore it is presented to the City Council for consideration with staff’s recommendation to oppose the ballot measure.
DISCUSSION:
In 2018, the “Tax Fairness, Transparency and Accountability Act” (California Attorney General File #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 January 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act, Attorney General File #21-0042A1. This measure is far more detrimental to cities than the measure filed in 2018 would have been, 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. Limits 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 same rules as taxes placed on the ballot by a city council. All measures passed
12.F-1Council Agenda 3-15-2022
between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.
2. Restricts 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. Restricts the 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. Restricts local tax authority to provide local services Requires voter approval to expand existing taxes (e.g., utility user tax (UUT), use tax, transient occupancy 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.
Recommendation and Next Steps
Staff recommends the Council adopt a Resolution (Attachment 1) taking a position of opposition to the ballot initiative and authorizing the Mayor to send a letter on behalf of the City Council, opposing the initiative.
FISCAL IMPACT:
There is no fiscal impact associated with the requested action.
ALTERNATIVES:
1. Decline to adopt the Resolution; provide staff with direction on how to proceed.
12.F-2Council Agenda 3-15-2022
ATTACHMENTS:
1. Resolution
Submitted by: Meeting Date: March 15, 2022
Jorge Garcia, Assistant City Manager
City Manager Approval:
12.F-3Council Agenda 3-15-2022
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA TO OPPOSE STATE BALLOT 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, the 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 the 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 Pismo Beach hereby opposes Initiative 21-0042A1 and will join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organization throughout the state.
BE IT FUTHER RESOLVED by the City Council of the City of Pismo Beach that the Mayor is hereby authorized to sign a letter of opposition on behalf of the City Council.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of March 2022, by the following vote:
AYES:
NOES:
ABSENT:
12.F-4Council Agenda 3-15-2022
Attachment 1
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
12.F-5Council Agenda 3-15-2022
Attachment 1