Copyright
California Legislative Counsel Bureau California. Secretary of State.

Amendments to the Constitution and proposed statutes : with arguments ... online

. (page 2 of 36)
Online LibraryCalifornia Legislative Counsel Bureau California. Secretary of StateAmendments to the Constitution and proposed statutes : with arguments ... → online text (page 2 of 36)
Font size
QR-code for this ebook


domestic or foreign, designated in said bonds.

Section 13 i, article XI, proposed to be amend-
ed, now reads as follows;

EXISTING LAW.

Section 13 1. Nothing in this constitution con-
tained shall he construed as prohibiting the state
or any county, city and county, city, town, munic-
ipality, or other public corporation, issuing bonds
under the laws of the state, to make said bonds
payable at any place within the United States
designated in said bonds.



Digitized by



Google



EXEMPTING EDUCATIONAL INSTITUTIONS FROM

TAXATION.

Senate Constitutional Amendment 15 adding section la to article XIII of constitution.
Exempts from taxation buildings, grounds within which same are located not exceeding one
hundred acres, equipment, securities and income used exclusively for educational purposes, of any
educational institution of collegiate grade within this state not conducted for profit.

Senate Constitutional Amendment No. 15, a reso-
lution to propose to the people of the State of
California an amendment to the Constitution of
the State of California by adding a new sec-
tion to said constitution to be numbered sec-



tion one a of article thirteen thereof, relating

to exempting certain property of educational

institutions of collegiate grade from taxation.

The legislature of the State of California at its

regular session, commencing on the sixth day of

January in the year nineteen hundred thirteen,

two thirds of all the members elected to each of

the two houses of the said legislature voting in

favor thereof, hereby proposes to the qualified

electors of the State of California, the following

amendment to the Constitution of the State of

California, by adding a new section thereto to be

numbered one a of article thirteen thereof, to

read as follows:

PROPOSED LAW.

Section la. Any educational institution of col-
legiate grade, within the State of California, not
conducted for profit, shall hold exempt from tax-
ation its buildings and equipment, its grounds
within which its buildings are located, not ex-
ceeding one hundred acres in area, its securties
and income used exclusively for the purposes of
education.

ARGUMENT IN FAVOR OF SENATE CONSTI-
TUTIONAL AlVIENDfVIENT NO. 15.

Fir8t — Every state in the union, except Cali-
fornia, exempts college property from taxation.
California should not be the only state to dis-
courage the investment of private capital in
higher education. In all other states the income
from benefactions to colleges may be used wholly
for the purpose for which such benefactions are
made ; here it must be in part diverted to such ob-
jects as road building and the lighting of streets.
Thus California suffers a distinct disadvantage
with patrons of education, such as the great
philanthropic boards of the East. The state
should assure outsiders desiring to make gifts for
education in California that every dollar will be
used for the purpose intended.

Second — The various colleges- of the state are
performing a service of the highest importance,
at a cost far in excess of the amount derived
from tuition. The state should not add the bur-
den of taxation to their other expenses, which
are met by endowment and by private gifts.



Third — California has already by special con-
stitutional amendments exempted some schools
from the taxation of their educational "plants,"
such as Stanford University, and Cogswell Poly-
technical College in San Francisco. The proposed
amendment will abolish discrimination, treating
all colleges alike.

Fourth — ^The proposed amendment will not take
a dollar from the state treasury itself, since the
state revenues are no longer derived from the
general property tax. This amendment merely
enables the localities where colleges are situated,
and which therefore receive the chief benefit
from them, to exempt them from taxation.

Fifth — The total cost of this proposed policy is
insignificant The taxes paid in 1912-1913 by all
the institutions known to be affected by this
amendment amounted to only ^20,976, a sum
wholly inconsiderable from the standpoint of
county »nd city government, but imposing a
heavy burden on the slim financial resources of
the colleges.

Sixth — The amendment as drawn Is carefully
safegruarded against possible abuse by the follow-
ing limitations:

(a) It exempts only institutions of collegiate
grade.

(b) Such Institutions can not be conducted for
profit Any institution receiving an income from
students in excess of its expenses would be ex-
cluded from exemption.

(c) The exempt property is limited to build-
ings, equipment, and grounds, with securities and
income, "used exclusively for the purposes of
education." Real estate held for investment or
revenue will be taxed just as at present, only the
educational "plant" actually in use being exempt
from taxation.

(d) The land which a college will hold exempt
as constituting its "campus" is limited to 100
acres, thus preventing the abuse of the law by an
institution holding large areas ostensibly as
"campus" but actually for investment and profit.

Seventh — So thoroughly convinced were the
lawmakers that this amendment is right and fair
that it passed the last legislature with but one
dissenting vote in either chamber.

A. E. Campbell,
State Senator Seventeenth District
Lbjb C. Gates,
State Senator Thirty-fourth District



EXEMPTING VESSELS FROM TAXATION.

Senate Constitutional Amendment 17 adding section 4 to article XIII of constitution.
Exempts from taxation until and including January 1, 1935, except for state purposes, all vessels
over 50 tons burden, registered at any "povt in this state and engaged in transportation of freight or
passengers.



Senate Constitutional Amendment No. 17, a
resolution proposing to the people of the State
of California, an amendment to the Constitu-
tion of the State of California, by adding a
new section to article XIII thereof, to be des-
ignated as section four of said article XIII of
the Constitution of the State of California, re-
lating to the exemption of vessels engaged in
commerce from taxation.
Resolved by the senate, the assembly concur-
ring. That the legislature of the State of Califor-
nia, at its regular session, commencing on the
sixth day of January, nineteen hundred thirteen,
two thirds of all the members elected to each of



the houses of said legislature voting in favor
thereof, hereby proposes to the electors of the
State of California, that a new section be added
to article XIII of the Constitution of the State of
California, to be known and designated as sec-
tion four of article XIII of the Constitution of
the State of California, and to read as follows:

PROPOSED LAW.

Section 4. All vessels of more than fifty tons
burden registered at any port in this state and
engaged in the transportation of freight or pas-
sengers, shall be exempt from taxation except for



state purposes, until and Includingr the first day
of January, nineteen hundred thirty-five.

ARGUMENT IN FAVOR OF SENATE CONSTI-
TUTIONAL AMENDMENT NO. 17.

Considering the many handicaps under which
American shipping is now laboring, and consid-
ering also the unjust discrimination now existing
under our revenue laws against any owner of a
vessel loyal enough to register said vessel at
some port in California, this amendment should
have the hearty co-operation of all California
citizens.

Under the now existing revenue laws, any ves-
sel registered from a port outside of California
is exempt from taxation in this state ; but if the
owner of any vessel, either an Individual or cor-
poration, is patriotic enough to register said ves-
sel from a California port, along comes the asses-
sor and taxes hiih for his loyalty.

This matter of exempting shipping from taxa-
tion is not a new nor an untried measure. The
great State of New York has already exempted
vessels from taxation for a period of 20 years,
and the State of Washington now has a revenue
law exempting all vessels registered from Wash-
ington ports from taxation. This Washington
law goes even further in this matter, and ex-
empts from taxation vessels under construction
and all materials used therein while said vessel
is in process of building.

The amount of revenue which might be lost by



the adoption of this amendment is very nominal,
and should not be considered in the comparison
with the great and immense benefit which will
accrue to this state in the way of advertisement,
by having all vessels registered from California
ports with the name of "San Francisco," "Los
Angeles," "Oakland," "San Diego," "Eureka,"
etc., painted on the stern of the vessel.

Foreign vessels, while they now pay no taxes,
are entitled to and receive equal benefits to all
domestic vessels, in the matter of police protec-
tion, fire protection, and also in respect to fed-
eral, state and coimty fees, for pilotage, dock-
age, etc.

Outside of the matter of advertising, it is
advisable to have all vessels plying along the
Pacific Coast registered from some port in Cali-
fornia. It is impossible to estimate the indirect
benefit this state will derive in the matter of
rentals, purchases of supplies and similar items.

By the adoption of this amendment, many ves-
sels which are now registered from New York,
Seattle and other ports foreign to California,
will, as a matter of convenience, return and reg-
ister from California.

The experiment is certainly worth the trial,
for after twenty years, the law, if unsatisfactory,
automatically repeals itself. If this amendment
is passed, it will be a great stimulus in the up-
building of our harbors and river ports as "well
as the expansion of a large local merchant
marine. Thos. F. Finn,

State Senator Twenty-third District



CONDEMNATION FOR PUBLIC PURPOSES.

Senate Constitutional Amendment 16 adding section 20 to article XI of constitution.

Authorizes state, county or municipality to condemn neighboring property within its limits addi-
tional to that actually intended for proposed improvement ; declares same taken for public use ;
defines estate therein and manner of dealing therewith to further such improvement ; permits county
or municipality to condemn lands within ten miles beyond its boundaries for certain public pur-
poses, with consent of other county or municipality if such lands lie therein ; requires terms of con-
demnation, lease or disposal of such additional property to be prescribed by law.
Senate Constitutional Amendment No. 16, a estate, and such additional property may be sold,
resolution proposing to the people of the State leased or otherwise disposed of, in whole or in



of California, an amendment to the Constitu-
tion of the State of California, by adding a
new section to article XI thereof, to be desig-
nated as section twenty, of said article XI, of
the Constitution of the State of California,
relating to the taking of property for public
use and additional property in excess thereof,
and for the payment therefor.
Resolved by the senate, the assembly concur-
ring. That the legislature of the State of Califor-
nia, at its regular session, commencing on the
sixth day of January, nineteen hundred thirteen,
two thirds of ail the members elected to each of
the houses of said legislature voting in favor
thereof, hereby proposes to the qualified electors
of the State of California, that a new section
be added to article XI of the Constitution of the
State of California, to be known and designated
as section twenty of article XI of the Constitu-
tion of the State of California, and to read as
follows :

PROPOSED LAW.

Section 20. The state, or any county, city and
county, or incorporated city or town, taking or
appropriating property within the limits thereof
for public use for any proposed public improve-
ment, may also take and appropriate, under the
powers of eminent domain, additional adjoining
or neighboring property within the limits thereof,
in excess of that actually to be devoted to or
occupied by the proposed improvement, and such
additional property so taken shall be deemed to
be taken for public use. The estate in such addi-
tional property so taken shall be a fee simple



part, under such terms and restrictions as may be
appropriate to preserve or further the improve-
ment made or proposed to be made. For the pur-
pose of acquiring, constructing, enlarging or im-
proving a public park, playground, boulevard,
street, building or grounds therefor, any county,
city and county, incorporated city or town may
condemn lands outside of its boundaries and
within the distance of ten miles therefrom, pro-
vided that no lands within any other county, city
and county, Incorporated city or town shall be
taken without its consent, to be given In any
manner that may be provided by law. The con-
ditions under which such additional property may
be taken or appropriated, the manner and method
of providing payment therefor and the terms and i
restrictions under which such property may be i
sold, leased or otherwise disposed of, shall be
prescribed by general law.

ARGUMENT IN FAVOR OF SENATE CONSTI-
TUTIONAL AMENDMENT NO. 16.

This amendment proposes a new section to the
constitution, giving the state, county and city the
right to take for public purposes not only such
property as may be necessary for immediate and
present need, but also such as may be required
for future use. Under the law as it stands
to-day only such property can be taken as is re-
quired for present use, but not such as may be
needed for future use.

The amendment Is designed to enable the state^
county or city to plan and carry out public tan*
provements on a oomprehenslve soalsw Zn tbs



Much of the increased value of the adjoining
property arises from the very fact that the state,
the county or the city has taken over the original
property for public purposes, and erected public
buildings on it. The instant that the state, or
county or city, erects its buildings, the adjacent
and surrounding property *is enhanced In value,
which very increase in value that it has produced
the public has to pay for, if later it buys this
adjoining and surrounding property. Under this
amendment, the public is enabled to retain this
increased value or Increment itself, and is not
compelled to pay for the value that it itself has
caused to accrue.

Both to save the public from this additional
cost, and to prevent the state, or count j*, or city
from having its plans frustrated and defeated by
its inability to obtain adjoining and surrounding
property for future development and expansion
of its parks, playgrounds and public institutions,
this amendment is designed.

Now that the function of government is coming
to be recognized in providing for the welfare of
its citizens In the broadest sense — their recrea-
tion and health, as well as their education and
protection — this duty dictates the adoption of
this amendment whereby far-sighted and com-
prehensive provision can be made in the way of
public Improvements, that shall be adequate for
the future as well as the immediate present
Herbert C. Jones,
State Senator Twenty-eighth District



* establishing and laying out of public Improve-

^ ments and public institutions, far-sightedness de-

l mands the planning on broad enough a scale to

~ permit of expansion and additions In the future.
The need may not exist at the time property Is

J first obtained for public use, but future growth
often requires additional land. A state univer-

i sity when first established does not have all the

: departments, nor need the various buildings, that

^ are later required. An asylum or industrial in-
stitution when first founded, and with a small
number of inmates, does not need the land for
buildings or for agricultural or dairy purposes
that Is needed later on when the Institution be-
comes much larger. A city may plan a civic
center on a far-reaching scale, with use at the
present time for only a few buildings, intending
in the future, as the need arises, and as the ex-
penses can be met, to add libraries, art galleries,
athletic fields, and other extensions.

At the present time, the state, or county or
city. In taking property can not take such as may
be required for future use. The public not being
able to procure adjacent and surrounding prop-
erty for future needs, this adjacent property is
bought by private Individuals. In many in-
stances It is taken up by speculators in the antici-
pation of a demand for It In the future for pub-
lic purposes. When the need for It In the future
•does come, the additions and extensions to pub-
lic institutions have to be made elsewhere, In
remote and inconvenient places, or the public re-
quired to pay unreasonable and exorbitant prices.

EXPOSITION CONTRIBUTION BY ALAMEDA COUNTY.

Senate Constitutional Amendment 34 amending section 18 of article XI of constitution.
Present section unchanged but proviso added authorizing Alameda county, at election therefor, to
incur l)onded indebtedness not exceeding $1,000,000, bearing interest not exceeding five per cent,
bonds redeemable within forty years and salable at not less than par, proceeds payable on terms
fixed by supervisors to Panama-Pacific International Exposition Company for exposition in San Fran-
cisco ; authorizing special tax upon all taxable property in Alameda county to pay interest and
. create sinking fund for payment of said bonds.

Senate Constitutional Amendment No. 34, e
resolution to propose to the people of the State
of California, an amendment to the Constitu-
tion of the State of California, by amending
section eighteen of article eleven thereof re-
lating to restrictions on the power of counties,
cities and other subdivisions of the state to
incur Indebtedness.
The legislature of the State of California, at
its regrular session, commencing on the sixth day
of January, 1913, two thirds of all of the mem-
bers elected to each of the houses voting In favor
thereof, hereby proposes to the qualified electors
of the State of California an amendment to the
Constitution of the State of California, by amend-
ing section eighteen of article eleven thereof.

Section 1. Section eighteen of article eleven
is hereby amended to read as follows:

PROPOSED LAW.

Section 18. No county, city, town, township,
board of education, or school district, shall incur
any indebtedness or liability in any manner or
for any purpose exceeding In any year the In-
come and revenue provided for such year, with-
out the assent of two thirds of the qualified elec-
tors thereof, voting at an election to be held for
that purpose, nor unless before or at the time of
incurring such Indebtedness provision shall be
made for the collection of an annual tax suflficient
to pay the Interest on such Indebtedness as It
falls due, and also provision to constitute a sink-
ing fund for the payment of the principal thereof
on or before maturity, which shall not exceed



forty years from the time of contracting the
same; provided, however, that the city and
f*ounty of San Francisco may at any time pay
the unpaid claims, with Interest thereon at the
rate of five per cent per annum, for materials
furnished to and work done for said city and
county during the forty-first, forty-second, forty-
third, forty-fourth, and fiftieth fiscal years, and
for unpaid teachers' salaries for the fiftieth fiscal
year, out of the income and revenue of any suc-
ceeding year or years, the amount to be paid in
full of said claims not to exceed In the aggregate
the sum of five hundred thousand dollars, and
that no statute o' limitations shall apply in any
manner to these claims; and provided, further,
that the city of Vallejo, of Solano county, may
pay its existing indebtedness, incurred in the con-
struction of its waterworks, whenever two thirds
of the electors thereof, voting at an election held
for that purpose, shall so decide, and that no
statute of limitations shall apply In any manner.
Any Indebtedness or liability Incurred contrary
to this provision, with the exceptions hereinbe-
fore recited, shall be void. The city and county
of San Francisco, the city of San Jose, and the
town of Santa Clara may make provision for a
sinking fund, to pay the principal of any indebt-
edness Incurred, or to be hereafter Incurred by
It. to commence at a time after the incurring of
such Indebtedness of no more than a period of
one fourth of the time of maturity of such Indebt-
edness, which shall not exceed seventy-five years
from the time of contracting the same. Any In-
debtedness incurred contrarsr to any provision of



this section shall be void; and provided, further,
that the county of Alameda may, upon the as-
sent of two thirds of the qualified electors there-
of voting at an election to be held for that pur-
pose, incur a bonded Indebtedness of not to
exceed one million dollars, and the legislative
authority of said coonty of Alameda shall Issue
bonds therefor and grant and turn over to the
Panama- Pacific international Exposition Com-
pany, a corporation organized under the laws of
the State of California, March 22, 1910, the pro-
ceeds of said bonds for stock In said company
or under such other terms and conditions as said
legislative authority may determine, the same
to be used and disbursed by said exposition com-
pany for the purposes of an exposition to be held
In the city and county of San Francisco to cele-
brate the completion of the Panama canal; said
bonds, so Issued, to be of such form and to be
redeemable, registered and converted In such
manner and amounts, and at such times not later
than forty years from the date of their Issue as
the legislative authority of said county of Ala-
meda shall determine; the Interest on said bonds
not to exceed five per centum per annum, and
said bonds to be exempt from all taxes for state,
county and municipal purposes, and to be sold
for not less than par at such times and places,
and In such manner, as shall be determined by
said legislative authority; the proceeds of said
bonds, when sold, to be payable immediately
upon such terms or conditions as said legislative
body may determine, to the treasurer of said
Panama-Pacific International Exposition Com-
pany, upon demands of said treasurer of said ex-
position company, without the necessity of the
approval of such demands by other authority,
than said legislative authority of Alameda
county, the same to be used and disbursed by
said Panama-Pacific International Exposition
Company for the purposes of such exposition,
under the direction and control of said exposition
company; and, the legislative authority of said
county of Alameda is hereby empowered and
directed to levy a special tax on all taxable
property in said county each year after the issue
of said bonds to raise an amount to pay the In-
terest on said bonds as the same become due,
and to create a slnldng fund to pay the princi-
pal thereof when the same shall become due.

Section 18, article XI, proposed to be amend-
ed, now reads as follows:

EXISTING LAW.

Section 18. No county, city, town, township,
board of education, or school districts, shall in-
cur any indebtedness or liability in any manner
or for any purpose exceeding in any year the
income and revenue provided for such year, with-
out the assent of two thirds of the qualified elec-
tors thereof, voting at an election to be held for
that purpose, nor unless before or at the time of
incurring such indebtedness provision shall be
made for the collection of ah annual tax suffi-
cient to pay the interest on such indebtedness as
It falls due, and also provision to constitute a
sinking fund for the payment of the principal
thereof on or before maturity, which shall not ex-
ceed forty years from the time of contracting
the same; provided, however, that the city and
county of San Francisco may at any time pay
the unpaid claims, with Interest thereon at the
rate of five per cent per annum, for materials
furnished to and work done for said city and
county during the forty-first, forty-second, forty-
third, forty-fourth, and fiftieth fiscal years, and
for unpaid teachers' salaries for the fiftieth fiscal
year, out of the Income and revenue of any suc-
ceeding year or years, the amount to be paid in
full of said claims not to exceed in the aggregate
Eisfat



the sum of five hundred thousand dollars, ana'
that no statute of limitations shall apply in anyl
manner to these claims; and provided, further,
that the city of Vallejo, of Solano county, may



Online LibraryCalifornia Legislative Counsel Bureau California. Secretary of StateAmendments to the Constitution and proposed statutes : with arguments ... → online text (page 2 of 36)