Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

California Constitutional Provisions

Article XIII B Constitution Government Spending Limitation

Section 3

Sec. 3. Adjustment of appropriations limit. The appropriations limit for any fiscal year pursuant to Sec. 1 shall be adjusted as follows:

(a) In the event that the financial responsibility of providing services is transferred, in whole or in part, whether by annexation, incorporation or otherwise, from one entity of government to another, then for the year in which such transfer becomes effective the appropriations limit of the transferee entity shall be increased by such reasonable amount as the said entities shall mutually agree and the appropriations limit of the transferor entity shall be decreased by the same amount.

(b) In the event that the financial responsibility of providing services is transferred, in whole or in part, from an entity of government to a private entity, or the financial source for the provision of services is transferred, in whole or in part, from other revenues of an entity of government, to regulatory licenses, user charges or user fees, then for the year of such transfer the appropriations limit of such entity of government shall be decreased accordingly.

(c) (1) In the event an emergency is declared by the legislative body of an entity of government the appropriations limit of the affected entity of government may be exceeded provided that the appropriations limits in the following three years are reduced accordingly to prevent an aggregate increase in appropriations resulting from the emergency.

(2) In the event an emergency is declared by the Governor, appropriations approved by a two-thirds vote of the legislative body of an affected entity of government to an emergency account for expenditures relating to that emergency shall not constitute appropriations subject to limitation. As used in this paragraph, "emergency" means the existence, as declared by the Governor, of conditions of disaster or of extreme peril to the safety of persons and property within the state, or parts thereof, caused by such conditions as attack or probable or imminent attack by an enemy of the United States, fire, flood, drought, storm, civil disorder, earthquake, or volcanic eruption.

History.—The amendment of June 5, 1990, added subsection number (1), deleted "of" after "event", added "is declared . . . of government", after "emergency", substituted "appropriations" for "appropriation" twice, and added "of the affected entity of government" after "limit" in subsection (1) of subdivision (c) and added subsection (2) of subdivision (c).

Construction.—A sales and use tax ordinance adopted by a redevelopment agency did not violate this Article because there was a transfer of financial responsibility to the agency within the meaning of this section and Health and Safety Code Section 33678. Huntington Park Redevelopment Agency v. Martin, 38 Cal.3d 100.