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Sep 11, 2023
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Legislature’s Attack on Prop 13 Has Major Flaw: ACA 13 Only Serves the League of Cities’ Most Wealthy Members

Author of ACA 13 Refuses to Fix Flaw that Leaves Counties, Most Other Cities, Special Districts, and Local School Districts Behind

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[Fight For Prop 13]

FOR IMMEDIATE RELEASE
September 11, 2023

Contact:
Hector Barajas
(323) 314-3342
hector@amplify360inc.com



Legislature’s Attack on Prop 13 Has Major Flaw: ACA 13 Only Serves the League of Cities’ Most Wealthy Members

Author of ACA 13 Refuses to Fix Flaw that Leaves Counties, Most Other Cities, Special Districts, and Local School Districts Behind

SACRAMENTO, Calif. — Today, Rob Lapsley, president of the California Business Roundtable, highlighted a deep flaw in Assembly Constitutional Amendment (ACA) 13 to the State Senate Elections and Constitutional Amendments Committee.

In committee, Lapsley noted, “ACA 13 is deeply flawed. As you know, unlike general law cities, charter cities are not bound by state statutes that conflict with their charter. A constitutional amendment under Article XI can only impose higher tax thresholds on charter cities. ACA 13 only applies to initiatives that amend the constitution, not those that enact or amend statutes.”

The fundamental flaw in ACA 13 resides in its selective applicability, differentiating between initiatives that amend the constitution and those affecting statutes. ACA 13 was crafted in a manner that solely protects the larger and wealthier urban charter cities. Despite this glaring flaw, the author of ACA 13 is refusing to fix it. In fact, Assemblymember Ward, who represents a large charter city that would benefit from ACA 13, acknowledged the flaw during committee testimony, stating that he intentionally chose to only protect large charter cities at the expense of smaller, rural cities and all other forms of local government.

Out of the 482 cities, 58 counties, 1,018 school districts, and 3,300 special districts, a mere 121 charter cities are protected by ACA 13. ACA 13 shows the danger when special interests rush through changes to the constitution at the last minute: they create confusing, fundamentally flawed and unfair policies.

Lapsley continued, “We cannot overlook the lightning speed at which ACA 13 was moved through the legislative process. This expedited pace raises questions on the hidden intentions, benefits to only the larger wealthier charter cities, its direct attack on Proposition 13, and muting the voices of over 1.4 million voters who championed to get TPA the ballot.”

The League of California Cities, one of the main proponents of ACA 13, has claimed the measure is needed to protect all cities. Yet under ACA 13, it is pushing a fundamentally unfair constitutional amendment that only protects its wealthy and largest members: charter cities.

“What’s worse,” Lapsley continued, “is that the inequity between charter and general law cities would likely create a series of equal protection lawsuits. The courts have held in Serrano v. Priest that, when such inequities exist, the state’s General Fund may be forced to provide additional revenue to general law cities. The flaws just keep coming with ACA 13. It’s time to put the brakes on this bad policy.”

ADDITIONAL BACKGROUND
Unlike general law cities, charter cities are not bound by state statutes that conflict with their charter. Higher tax thresholds can only be imposed on charter cities by a constitutional amendment. ACA 13 only applies to initiatives that amend the constitution, not those that amend statutes, so a future statutory initiative could impose a 2/3 vote threshold on general law cities and be approved by a simple majority. ACA 13 stands to result in a two-tier system where charter cities are effectively immunized from any new restrictions on their tax and revenue-raising powers, while all other local governments can continue to be subjected to far more stringent revenue raising hurdles. The inequities built into ACA 13 could trigger an equal protection claim based upon different funding levels for the same services, depending on whether someone lives inside or outside a charter city.

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Paid for by the California Business Roundtable
www.fightforprop13.org


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