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RES-2024-087RESOLUTION NO. 2024- 087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 AND ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF ANAHEIM AN INITIATIVE MEASURE IMPOSING A GENERAL TAX ON EACH FOR - PROFIT GENERAL ACUTE CARE HOSPITAL LOCATED IN THE CITY OF ANAHEIM ("HOSPITAL") EQUIVALENT TO THREE (3) PERCENT OF THE FOR - PROFIT HOSPITAL'S ANNUAL GROSS RECEIPTS; REQUESTING THAT THE ORANGE COUNTY BOARD OF SUPERVISORS DIRECT THE ORANGE COUNTY REGISTRAR OF VOTERS TO RENDER SERVICES TO THE CITY RELATING TO THE CONDUCT OF THE GENERAL MUNICIPAL ELECTION; ESTABLISHING THE DEADLINES FOR THE FILING OF ARGUMENTS AND REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, pursuant to the provisions of Section 1303 of the Anaheim City Charter and Section 9215 of the Elections Code of the State of California, the City Council has received a duly signed and certified initiative petition containing the signatures of not less than ten percent (10%) of the registered voters of the City according to the last report of registration by the county elections official to the Secretary of State pursuant to Section 2187 of the Elections Code of the State of California, which initiative petition proposes a City ordinance that would impose a general tax on each for -profit general acute care hospital located in the City of Anaheim ("Hospital") equivalent to three (3) percent of the for -profit hospital's annual gross receipts; and WHEREAS, Section 9215 of the California Elections Code requires the City Council to either adopt the initiative measure, without alteration, or submit the initiative measure to a vote of the electorate of the City at an election called for such purpose; and WHEREAS, the City Council has not adopted the initiative measure in accordance with California Elections Code Section 9215 (a) and, instead, timely decided on July 23, 2024 to submit the ordinance, without alteration, to the voters at a general municipal election pursuant to California Elections Code Sections 9215(b) and 1405; and 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Submission of Ballot Measure. A. Pursuant to Sections 1300 and 1303 of the Anaheim City Charter and Sections 1405 and 9215 of the California Elections Code, there is called and ordered to be held in the City of Anaheim on Tuesday, November 5, 2024 a general municipal election for the purpose of submitting an initiative measure that would impose a general tax on each for -profit general acute care hospital located in the City of Anaheim ("Hospital") equivalent to three (3) percent of the for -profit hospital's annual gross receipts tax ordinance to the qualified voters of the City. The full text of the ordinance proposed by the initiative measure is set forth in Exhibit 1, attached hereto and incorporated herein by this reference as if set forth in full. B. The question to be submitted to the voters concerning the initiative measure shall appear on the ballots in substantially the following form: MEASURE _ I YES CITY OF ANAHEIM FOR -PROFIT HOSPITAL GROSS RECEIPTS TAX INITIATIVE - Shall the measure imposing a general tax on each for -profit general acute care hospital located in the City of Anaheim, equivalent to three (3) percent of the for- NO profit hospital's yearly gross receipts (as defined in the measure) be adopted, with annual revenues to the City projected to be in the range of $6 million to $12 million, until ended by the voters? C. The letter or number the Orange County Registrar of Voters assigns to the Measure in accordance with City and State law is hereby ordered to be included by the City Clerk in the designation for the ballot title and as necessary in any other City documents. D. The vote requirement of the measure to pass is a majority (50%+1) of the votes cast. If the measure is so approved by the City of Anaheim voters, then the ordinance, set forth in Exhibit 1, shall be signed by the Mayor and become effective ten (10) days following the date the vote is declared by the City Council in accordance with Section 9217 of the California Elections Code. 01 SECTION 2. Election Procedures. A. The ballots to be used at the general municipal election shall be in the form and content as required by law; B. In accordance with Section 10002 of the California Elections Code, the City requests that the County Election Department/Registrar of Voters render full election services to the City of Anaheim as may be requested by the City Clerk, with the County to be reimbursed in full for such services as are performed. C. The City Clerk is authorized to contract and coordinate with the Orange County Registrar of Voters, in order to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the general municipal election upon presentation of appropriate invoices. D. Vote Centers for the general municipal election shall be open ten days prior to election day, with select Vote Centers being open from 8:00 a.m. to 5:00 p.m. seven (7) days prior to election day, all Vote Centers being open 8:00 a.m. to 8:00 p.m. three (3) days prior to election day, and 7:00 a.m. to 8:00 p.m. on election day, pursuant to the California Elections Code and the 2021-2025 Election Administration Plan of the County of Orange. E. Ballot drop boxes shall be open for 29 days prior to the election, including on election day, and available 24 hours a day, 7 days a week, and until 8:00 p.m. on election day, pursuant to California Elections Code and the 2021-2025 Election Administration Plan of the County of Orange. F. In all particulars not recited in this Resolution, the general municipal election shall be held and conducted as provided by law for holding municipal elections in the City. G. Notice of the time and place of holding the general municipal election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of such election, in time, form, and manner as required by law. H. All ballots shall be tallied at a central counting place and not at the precincts. The central counting place shall be at a County center as designated by the Orange County Registrar of Voters. I. The Orange County Registrar of Voters is hereby authorized to canvass the returns of the general municipal election. I The City Clerk of the City of Anaheim shall receive the canvass from the County as it pertains to the general municipal election on the measure, and shall timely certify the results to the City Council, as required by law. SECTION 3. Ar uments and Impartial Analysis. A. Pursuant to California Elections Code Section 9282(a), the proponents of the initiative measure may file a written argument for, and the City Council may file a written argument against, the measure, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and may change or withdraw the arguments, until 5:00 p.m. on August 6, 2024, after which time no arguments for or against the measure may be submitted to the City Clerk. Arguments in favor of or against the measure shall each not exceed 300 words in length. Each argument shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement To Be Filed by Author(s) of Argument. B. The City Clerk shall comply with all provisions of law and take all necessary actions to cause the selected arguments to be printed and distributedto the voters. C. Pursuant to Section 9280 of the California Elections Code, the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, describing the effect of the measure on existing law. The City Attorney shall transmit such impartial analysis to the City Clerk, who shall cause the analysis to be published in the voter information guide along with the ballot measure as provided by law. The impartial analysis shall be filed by 5:00 p.m. on August 6, 2024. The impartial analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the measure is not printed on the ballot or in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: "The above statement is an impartial analysis of the measure. If you desire a copy of the measure, please call the election official's office at (714) 765-5166 and a copy will be mailed at no cost to you." D. The provisions of this Section 3 herein shall apply only to the general municipal election to be held on Tuesday, November 5, 2024. 2 // SECTION 4. Rebuttal Arguments. A. Pursuant to Section 9285 of the Elections Code of the State of California, when the Clerk has received the arguments for and against the measure which will be printed and distributed to the voters, the Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk by 5:00 p.m. on August 16, 2024. The rebuttal arguments shall comply with the requirements of Elections Code Section 9285 and shall be accompanied by the Form of Statement To Be Filed by Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut in the voter information guide B. The provisions of this Section 4 herein shall apply only to the general municipal election to be held on Tuesday, November 5, 2024. SECTION 5. Delivery of Resolution to County. The City Clerk shall attest to the adoption of this Resolution and enter it into the book of original resolutions. The City Council directs the City Clerk to deliver certified copies of this Resolution, including the full text of the measure attached hereto as Exhibit 1, to the Clerk of the Board of Supervisors of Orange County and to the Orange County Registrar of Voters. SECTION 6. Public Examination. Pursuant to California Elections Code Section 9295, the arguments, ordinance, and impartial analysis will be available for public examination for no fewer than ten (10) calendar days following the deadline for submission of those materials. The City Clerk shall post a notice of the specific dates that the examination period will run SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 8. Execution of Ordinance. If the voters approve the initiative measure, the Mayor is hereby authorized to execute the ordinance adding Chapter 2.15 to Title 2 of the Anaheim Municipal Code, attesting to its adoption by the People voting thereon on Tuesday, November 5, 2024. 5 THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 23`d of July, 2024, by the following roll call vote: AYES: Mayor Aitken and Council Members Kurtz, Leon, and Rubalcava NOES: Council Members Diaz, Faessel and Meeks ABSENT: None ABSTAIN: None CITY OF NAHEIM r By: MAYOR OF I CITY OF ANAHEIM AT ~ CL 1� OF THE CITY OF ANAHEIM 2 EXHIBIT 1 Initiative Measure ORDINANCE NO. : ORDINANCE OF THE PEOPLE OF THE CITY OF ANAHEIM, CALIFORNIA ENACTING A FOR -PROFIT HOSPITAL GROSS RECEIPTS TAX The People of the City of Anaheim hereby ordain as follows: Section 1. Chapter 2.15, entitled FOR -PROFIT HOSPITAL GROSS RECEIPTS TAX, is hereby added to Title 2 of the Anaheim Municipal Code. 2.15.010 Title. This ordinance shall be known as the City of Anaheim For -Profit Hospital Gross Receipts Tax Ordinance. 2.15.020 Effective Date. The Hospital Tax shall take effect on January 1 of the year following voter approval. It shall be assessed on an annual basis that year and thereafter. 2.15.030 Purpose and Intent. This ordinance is adopted to achieve the following, among other purposes, and shall be interpreted in order to accomplish those purposes: .10 To impose a tax on the privilege of operating a for -profit hospital within the City. This general tax shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. .20 This revenue measure imposes a general tax on the gross receipts of any for -profit general acute care hospital in the City. Hospitals play a central role in caring for the health of City residents and generate profits for their owners in doing so. The City provides support to hospitals by providing municipal services such as street repairs, utility maintenance, clean water, public safety, and other infrastructure. City residents and businesses also support hospitals financially, by paying bills or purchasing insurance, with individuals paying an increasing share of their bills through co -pays and deductibles. The City also supports health in other ways, such as through senior services, recreational programs, and affordable housing. The revenue contributed from the Hospital Tax may be used to support municipal interests such as economic growth and development, community services, and recreational opportunities, all of which promote a healthy city. 2.15.040 Definitions. For purposes of this section the following terms have the following meanings, which apply notwithstanding any other provision of this Code: .10 "City" means the City of Anaheim, California. .20 "Gross Receipts" means the Hospital's annual net patient revenue as required to be reported to the California Department of Health Care Access and Information pursuant to California Health and Safety Code section 128735, subdivision (b). .30 "Hospital" means all hospitals as defined in California Health and Safety Code section 1250(a) that operate within the borders of the City, excluding any hospital owned by a nonprofit organization that is exempted from taxation by Chapter 4 of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code, or any law that succeeds these provisions. .40 "Hospital Tax" refers to the tax established pursuant to this Section. .50 "Tax Administrator" means the City Treasurer or Director of Finance, or the designee of the City Treasurer or Director of Finance. 2.15.050 Hospital Tax. In addition to any other taxes imposed by the City, the County, any local special districts, the State of California, and the federal government, the City hereby levies an annual tax on each Hospital subject to this section in an amount equivalent to three percent (3%) of the Hospital's Gross Receipts. 2.15.060 General Tag. The Hospital Tax is a general tax. Proceeds from the Hospital Tax shall be deposited into the City's general fund. 2.15.070 Administration of Tax. .10 It shall be the duty of the Tax Administrator to collect, receive and direct all taxes imposed by this section, and to keep an accurate record thereof. .20 The Tax Administrator is charged with enforcing this section, and may prescribe, adopt, develop, and enforce rules and regulations relating to the administration and enforcement of this ordinance. A copy of such rules and regulations shall be on file in the Tax Administrator's office. 2.15.080 Apportionment. .10 When, by reason of the provisions of the Constitution of the United States or the Constitution of California, this chapter cannot be enforced without there being an apportionment of the Hospital's Gross Receipts according to the amount of business activity within the City or within. the State of California, the Tax Administrator shall determine the appropriate formula for apportionment and shall determine the amount of Gross Receipts to be apportioned pursuant thereto, based on information provided by the Hospital. .20 It shall be the Hospital's obligation to request apportionment and to provide all information necessary for the Tax Administrator to determine the appropriate formula for apportionment and determine the amount of Gross Receipts to be apportioned, no later than thirty (30) days prior to the delinquency date established by the Tax Administrator, and if the Hospital does not so request in writing, it shall be conclusively deemed to have waived any apportionment for that year. .30 If a Hospital believes that the amount of tax owed according to the Tax Administrator's apportionment formula is greater than the facts justify, the Hospital may apply in writing to request a modification. The application shall be accompanied by a statement of facts supporting the requested reduction. The Tax Administrator shall determine whether the amount of tax owed will be reduced, increased, or allowed to stand, based on the evidence presented by the Hospital and any other evidence the Tax Administrator may request or otherwise obtain. 2.15.090 Severability. The provisions of this Ordinance are severable. If any provision, sentence, clause, section, or part of this Ordinance, or their application, is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. The Electors of the City of Anaheim hereby declare that they would have adopted this Ordinance had such invalid provision, sentence, clause, section, or part thereof not been included herein. CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2024-087 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 231 day of July. 2024 by the following vote of the members thereof: AYES: Mayor Aitken and Council Members Kurtz, Leon, Rubalcava, NOES: Council Members Diaz, Faessel and Meeks ABSTAIN: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand this 24t' day of July, 2024. 4CITYRKOF THE CITY OF ANAHEIM (SEAL)