Finance and Operations
The closing days of session were fairly quiet for the Finance and Operations Policy Unit following successful efforts to defeat or amend down the most onerous bills to a neutral position earlier in the year.
Local Control and Revenue Protected: CSAC’s collaboration with legislative offices and bill sponsors preserved local procedures for handling written protests for Prop 218 proposed fees (AB 2801) and local control of campaign finance rules (AB 2523). We also defeated a proposal introduced twice in six months by two different authors that would have expanded base year value transfers for property taxes, representing a direct revenue loss for counties.
Hotel Tax Diversion Prevented: A major effort to preserve local control of online short-term vacation rentals was also successful following substantial negotiations and education on how counties are managing units offered through platforms such as Airbnb. A classic “solution in search of a problem” set of bills were introduced with the right intentions but failed to adequately address the local collection of transient occupancy taxes or “hotel taxes” through a statewide system. CSAC and coalition partners showed the value of a ground-up approach that relies on local solutions and agreements in lieu of a state-driven process.
Elections Funding and Reform: Positive movement was made on the elections front with great attention being given to the unpredictable changes brought by the presidential race and dozens of statewide ballot initiatives. This included securing over $16 million in funding this April for county elections administration to manage the unprecedented surge in voter registration and primary elections anticipated turnout. Legislation seeking to help counties manage costly special elections through a vote-by-mail option is now awaiting signature on the Governor’s desk, AB 2686. CSAC also supported a sweeping change to how Californians can vote in SB 450, which phases in elections conducted entirely by vote-by-mail ballots and with multiple-day voting opportunities at regional vote centers. This could prove to be a major cost savings for counties that also may help improve voter turnout.
Veto Requests for Finance and Operations: There remains but a handful of bills the CSAC is seeking a veto on from Governor Brown. This includes measures establishing state and local sales tax exemptions for diapers (AB 717), feminine hygiene products (AB 1561) and animal blood banks (SB 898). Last year the Governor vetoed over a dozen similar measures providing tax exemption or credits with a single veto message referring to the precarious economic health of the state.
CSAC is also seeking a veto on Assembly Bill 587 that would establish a mobile home tax amnesty program and place hundreds of millions of property tax dollars in jeopardy. Finally, CSAC is opposed to Assembly Bill 2476 that would require an unnecessary notification of a voter-approved parcel tax for property owners that live outside the jurisdiction where the parcel tax is levied.