AB 699

AB699:v94#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 699

An act to amend Sections 9401, 9403, 9405, and 13119 of, to amend the heading of Chapter 5 (commencing with Section 9400) of Division 9 of, to add Section 9406 to, and to repeal and add Section 9400 of, the Elections Code, relating to elections.

LEGISLATIVE COUNSEL'S DIGEST

AB 699, Stefani. Elections: local tax measures.

Under existing law, if a proposed local measure imposes a tax or raises the rate of a tax, the ballot must include the amount of money to be raised annually by the tax and the rate and duration of the tax.

If the measure imposes or increases a tax with more than one rate or authorizes the issuance of bonds, this bill would allow the local government submitting the measure to the voters to direct the elections official to include on the ballot a statement directing the voters to the county voter information guide for information about the tax rate or about how the bond debt would be repaid, in lieu of providing the information on the ballot as described above. If the local government directs voters to the county voter information guide for tax rate information, the bill would require local elections officials to provide a measure information statement with the sample ballot for the election. The bill would require the measure information statement to include, among other things, a description of the purpose of the tax and how the revenue will be spent, a list of all tax rates expected to apply, and the duration of the tax. By requiring local elections officials to provide additional information to voters, this bill would impose a state-mandated local program.

Existing law requires local governments, when submitting a measure for voter approval for the issuance of bonds that will be secured by ad valorem property taxes, to mail voters a statement that includes estimates of the tax rates required to fund the bond debt.

Existing law authorizes county and city elections officials to establish procedures to permit a voter to opt out of receiving a county voter information guide, state voter information guide, notice of polling place, and other associated materials by mail, and instead obtain them electronically by email or accessing the county’s or city’s internet website, if certain conditions are met.

This bill would authorize local governments to use those same procedures to electronically transmit the measure information statement and the statement including estimates of the tax rates required to fund bond debt.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

The heading of Chapter 5 (commencing with Section 9400) of Division 9 of the Elections Code is amended to read:

CHAPTER 5. Local Tax or Bond Measures

SEC. 2.

Section 9400 of the Elections Code is repealed.

SEC. 3.

Section 9400 is added to the Elections Code, to read:

9400.

(a) For each tax measure for which ballots include one of the phrases described in subparagraph (B) of paragraph (2) of subdivision (b) of Section 13119, a measure information statement shall be mailed to the voters, or electronically submitted to the voters pursuant to Section 13300.7, with the sample ballot for the election to authorize the tax. The measure information statement required by this section shall be filed with the elections official conducting the election not later than the 88th day before the election, and it shall include all of the following:

(1) A concise description of the purpose of the tax proposed, including how the tax revenue and bond proceeds, if any, will be spent to benefit the community.

(2) If the measure imposes a tax expected to have more than one tax rate, a list of all the tax rates that are expected to apply and a description of how the tax will be imposed.

(3) A plain language description of any mechanism that would cause the tax rate or rates to vary over time.

(4) An explanation of the duration of the tax stating whether the tax expires on a specific date, expires upon final payment of indebtedness, does not expire until further action by the voters or the local governing body, or expires as the result of some other action or occurrence.

(5) Except if the information specified in paragraph (6) of this subdivision is included, the best estimate from official sources of the average annual dollar amount of taxes that would be collected during the ten-year period following the initial levy.

(6) If the tax measure would authorize the issuance of bonds, the security for which constitutes a lien on the property for ad valorem taxes within the jurisdiction, all the disclosures required by Section 9401.

(b) (1) For purposes of an election to approve a tax under the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), the statement required by subdivision (a) may consist entirely of a complete copy of the report and resolution of formation described in Sections 53321.5 and 53325.1 of the Government Code.

(2) For purposes of an election to approve a tax proposed pursuant to a charter city’s authority under Section 5 of Article XI of the California Constitution, the statement required by subdivision (a) may consist entirely of the proposed charter provision or ordinance.

SEC. 4.

Section 9401 of the Elections Code is amended to read:

9401.

(a) In connection with each bond issue proposed by a local government, the security for which constitutes a lien on the property for ad valorem taxes within the jurisdiction and the proposal for which is required to be submitted to the voters for approval, a measure information statement, combined with any measure information statement required by Section 9400, shall be mailed to the voters, or electronically transmitted to the voters pursuant to Section 13300.7, with the sample ballot for the bond election. The measure information statement required by this section shall be filed with the elections official conducting the election not later than the 88th day before the election, and shall include all of the following:

(1) The best estimate from official sources of the average annual tax rate that would be required to be levied to fund that bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors. The estimate shall also identify the final fiscal year in which the tax is anticipated to be collected.

(2) The best estimate from official sources of the highest tax rate that would be required to be levied to fund that bond issue, and an estimate of the year in which that rate will apply, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors.

(3) The best estimate from official sources of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold. The estimate may include information about the assumptions used to determine the estimate.

(b) In addition, the statement may contain a declaration of policy of the legislative or governing body of the applicable jurisdiction, proposing to use revenues other than ad valorem taxes to fund the bond issue, and the best estimate from official sources of these revenues and the reduction in the tax rate levied to fund the bond issue resulting from the substitution of revenue.

(c) For purposes of this chapter, “tax rate” means tax rate per one hundred thousand dollars ($100,000) of assessed valuation on all property to be taxed to fund a bond issue described in this section.

SEC. 5.

Section 9403 of the Elections Code is amended to read:

9403.

Failure to comply with this chapter does not affect the validity of either of the following:

(a) A bond issue following the sale and delivery of the bonds.

(b) A tax following its initial imposition.

SEC. 6.

Section 9405 of the Elections Code is amended to read:

9405.

(a) If the elections official is required to mail a measure information statement, as provided in Section 9400 or Section 9401, only one copy of the statement shall be mailed to a postal address where two or more registered voters have the same surname and the same postal address, or the measure information statement may be transmitted electronically pursuant to Section 13300.7.

(b) This section applies only if the legislative body adopts this section and the elections official conducting the election approves of the procedure.

SEC. 7.

Section 9406 is added to the Elections Code, to read:

9406.

An estimate or projection made in the measure information statement required pursuant to Section 9400 or Section 9401 does not restrict or limit the tax imposed in accordance with the measure.

SEC. 8.

Section 13119 of the Elections Code is amended to read:

13119.

(a) The ballots used when voting upon a measure proposed by a local governing body or submitted to the voters as an initiative or referendum measure pursuant to Division 9 (commencing with Section 9000) shall have printed on them the words “Shall the measure (stating the nature thereof) be adopted?” To the right or below the statement of the measure to be voted on, the words “Yes” and “No” shall be printed on separate lines, with voting targets. If a voter marks the voting target next to the printed word “Yes,” the voter’s vote shall be counted in favor of the adoption of the measure. If a voter marks the voting target next to the printed word “No,” the voter’s vote shall be counted against its adoption.

(b) (1) Except for a measure described in paragraph (2), if the proposed measure imposes a tax or raises the rate of a tax, the ballot shall include in the statement of the measure to be voted on an estimate of the amount of money to be raised annually and the rate and duration of the tax to be levied.

(2) If the proposed measure imposes or increases a tax with more than one rate, or authorizes the issuance of bonds, the jurisdiction submitting the measure to the voters shall, not later than 88 days before the election, inform the elections official conducting the election which of the following shall be included in or immediately following, as applicable, the statement of the measure:

(A) The estimate, rate, and duration information described in paragraph (1).

(B) One of the following phrases, as applicable:

(i) For a measure that authorizes the issuance of bonds to be repaid from ad valorem property taxes: “See county voter guide for how property taxes repay bonds.”

(ii) For a measure that authorizes the issuance of bonds to be repaid from a source other than ad valorem property taxes: “See county voter guide for how the bonds are repaid.”

(iii) For a measure that imposes or increases a tax with more than one rate and does not authorize the issuance of bonds: “See county voter guide for detailed tax rate information.”

(3) If the statement of the measure is to include one of the phrases provided for in subparagraph (B) of paragraph (2), the election order for the measure shall include a statement of the reasons for selecting the inclusion of the phrase provided for in subparagraph (B) of paragraph (2).

(4) If the elections official is informed that the statement of the measure shall include one of the phrases provided for in subparagraph (B) of paragraph (2), the requirements of Sections 9400 and 9401 apply to the measure, and the number of words in the phrase shall count toward any word limit that applies to the statement of the measure.

(c) The statement of the measure shall be a true and impartial synopsis of the purpose of the proposed measure, and shall be in language that is neither argumentative nor likely to create prejudice for or against the measure.

(d) Any estimate or projection included in the statement of the measure pursuant to this section, or included in the statements required pursuant to Section 9400 or Section 9401, does not restrict or limit the tax imposed in accordance with the measure.

(e) For purposes of this section, the following terms have the following meanings:

(1) “Local governing body” means the governing body of a city, county, city and county, including a charter city or charter county, or district, including a school district.

(2) “Target” means an object designated as the aim for a voter to make a vote selection.

SEC. 9.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.