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272 <br />3. Compulsory Arbitration, SB 1293 and SB 1294 would require that, in <br />event local agencies and recognized employee organizations representing <br />local law enforcement employees, or local safety employees, respectively, <br />fail to agree on terms of employment, mandatory submission to arbitration <br />resulting in findings and recommendations would be required. For reasons <br />of restriction of freedom of negotiation and deprivation of jurisdiction <br />over <br />local matters, Committee <br />urged <br />opposition to SB <br />1293 <br />and SB 1294, <br />4, <br />Utility Users Taxes. AB <br />1320, <br />prior to amendment <br />in <br />committee, would <br />have instituted a tax on use of telephones. Since amendments have removed <br />that tax provision, Committee recommended no position be taken on AB 1320, <br />SB 1213 would impose 5% users tax on telephone, electricity and gas services, <br />and provide for monthly distribution of revenues to local agencies based on <br />population and assessed valuation. Committee recommended opposition to SB 1213 <br />on the ground it removes local ,jurisdiction and decision making ability relative <br />to imposition of such taxes. Also the State tax would result in double <br />taxation to the extent local agencies have or may institute similar taxes. <br />5. Taxation of Municipal Utilities, AB 908 and SB 688 are companion bills <br />which would impose 14% on gross revenue of City -owned electric utilities. <br />The bills do not provide relief for the fact that local taxpayers have been <br />or are being taxed for capital outlays for acquisition or construction of <br />such utilities. Also the bills represent another piecemeal attempt to effect <br />some kind of tax reform. In addition, the bills fail to recognize that local <br />agencies may be compelled to raise other taxes to the extent that local <br />revenues are diminished by the utility tax. They also provide for subventions <br />to certain school districts within the local agency's utility service area, <br />thus depriving the agency operating the utility from direct benefits of the <br />tax. Committee recommended opposition to AB 908 and SB 688, <br />6. Prohibition of Local License Tax. SB 1057 would prohibit cities and <br />counties, whether chartered or not, from imposing a tax on coin operated <br />laundry machines. The bill represents incursion on the right of local <br />agencies to impose business license taxes, which are an important source <br />of local revenue. Committee recommended opposition to SB 1057. <br />7. State Control of Prevailing Wage Rates. AB 1335 would amend Section of <br />the Labor Code defining term "public work" so as to require local agencies <br />to pay the prevailing wage rate to its own employees working on "public works." <br />This would serve to reverse the decision of State Supreme Court in Bishop vs. <br />City of San Jose, holding that prevailing wage rate provisions of the Labor <br />