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June 3, 1986 - Primary Election - Ballot Pamphlet
■ ■■■ ■ ■■ ■■■■ aa:■■/i■■■■rr■■/■■■r■//■■■■■■■■.■■■■■■■■■■■■■■■■■■■■■■ ■■■■ a::C■:C::aaCCa::a:::�■a•::a:=::°:aC::C�: ► • •:CaCCC�Ea:isa::i:::aaa::::a::a:a::a:::a::a.::�CCCC a:: w:::::•::monsoon OMEN /■i■iiii■■r■i■■■■■■/ii■r■/■■■■■i/■i■■■iir■■/rr■■■ii■■/■r/■■■■■■/■■■■■■■■■■■■■■■■■■/■i■■ii■■■rr■■■ ri■rii■ri■��■■rr■■/r■i■r■iiiriii■■i■■i■■■//■rr■■■■■i//■■■ii■iC/rr■/■■■r■■■r■■■i...----- � i■i■ii■r■� •-�.■■■i������■i■■■i■■r■■■/■/r■■■rr■■r/i■■■■■■ii■r�rii■■.....-_-_. munnon aCCa muumuu malummull uru■oo �,, iir■i■■■it MMOMM i■rii■/ist .lulu■■■it . ■riirriilr ■r■irrii■■ i■si■■i■li iuuu■u, �. • uu■uoii iliii■i■lil i/r■iri■lr� aa::a::C::� • ■■r■i.ii/il ■.i.■■■■i■, ■r■■■rii.■, ■■mall■ill, • iliir■/■■rt MEN •• • . , ► uuru■■rt . ill■iil■t r • • ► No mamas r.■lrr■■lrt wash■■iMolt • ■■■■rr■i■rt mamma ► C:::::::::: • CCi:����wii • � � � �l- s� Ijt 14 ill ►► ,�$rrrrtaq 1Tf ;$gift SACRAMENTO 9S814 Dear Fellow Californians: This is your California Ballot Pamphlet for the June 3, 1986, Primary Election. It contains the ballot title,a short summary,the Legislative Analyst's analysis, the pro and con arguments and rebuttals, and the complete text of each proposition. It also con- tains the legislative vote cast for and against each measure. proposed by the Legislature. Many rights and responsibilities go along with citizenship. Vot- ing is one of the most important as it is the foundation on which our democratic system is built. Read carefully each of the meas- ures and information about them contained in this pamphlet.Leg- islative propositions and citizen-sponsored initiatives are designed specifically to give you, the electorate, the opportunity to influ- ence the laws which regulate us all. Take advantage of this opportunity and exercise your rights by voting on June 3, 1986. SECRETARY OF STATE 2 P86 � o ' CONTENTS Proposition Pages BOND ACTS 42 Veterans Bond Act of 1986................................................................ 4-5, 40-41 43 Community Parklands Act of 1986.................................................. 6-9, 41-42 44 Water Conservation and Water Quality Bond Law of 1986 .... 10-13, 42-45 LEGISLATIVE CONSTITUTIONAL AMENDMENTS 45 Deposit of Public Moneys in Credit Unions .................................. 14-17 46 Property Taxation................................................................................ 18-19 47 Allocation of Vehicle License Fee Taxes to Counties andCities .......................................................................................... 20-21 48 Legislators' and Judges' Retirement Systems .............................. 22-23 49 Nonpartisan Offices ............................................................................ 24-27 50 Property Taxation. Disasters ............................................................ 28-31 INITIATIVE STATUTE 51 Multiple Defendants Tort Damage Liability................................ 32-35 BOND ACT 52 County Correctional Facility Capital Expenditure Bond Act of 1986 ...........................:............................................... 36-39, 46 ' COVER SLOGAN The slogan on this ballot pamphlet cover was chosen from among 36,333 proposed entries for the Secretary of State-7/Eleven voter slogan contest. The contest, which ran from January 6 to February 15, was designed to increase voter awareness and participation.Lucretia Gunnett of Willits received$1,000 for her winning slogan"What a difference a vote makes." Second-place winner of$500 was Will Courtenay of San Francisco with his entry "You're needed for a group decision. Register. Vote." Third-place winner of$250 was Territa Lowenberg of Lafayette with her slogan "Be heard,not herded.Vote!"The second-and third-place slogans will appear on the November 1986 ballot pamphlet cover. Throughout this booklet, where space permitted, are printed slogans from the contest. Because so many clever and catchy slogans were submitted, we wanted to share as many of them as possible with you. The authors' names appear with the slogans. Please note that Proposition 42 is the first proposition for this election. To avoid confusion with past measures, the Legislature passed a law which requires propositions to be numbered consecutively starting with the next number after those used in the November 1982 General Election. This numbering scheme runs in twenty-year cycles. P86 3 c 4 2 Veterans Bond Act of 1986 Official Title and Summary Prepared by the Attorney General VETERANS BOND ACT OF 1986. This act provides for a bond issue of eight hundred fifty million dollars ($850,000,- 000) to provide farm and home aid for California veterans. Final Vote Cast by the Legislature on AB 286 (Proposition 42) Assembly: Ayes 73 Senate: Ayes 38 Noes 0 Noes 0 Analysis by the Legislative Analyst Background Vet program.The Department of Veterans Affairs advises Since 1921, the voters have approved a total of about that these bonds would provide sufficient funds to enable $5.7 billion of general obligation bond sales to finance the about 12,000 additional veterans to participate. veterans' farm and home purchase (Cal-Vet) program. "General obligation"bonds are backed fully by the state, Fiscal Effect meaning that the state will use its taxing power to assure 1. Cost of Paying Off the Bonds that enough money is available to pay off the bonds. All The bonds authorized by this measure would be paid off bonds previously authorized to provide loans under this probably over a period of up to 25 years. If the bonds are program have been sold. . sold at an interest rate of 7.5 percent,principal and inter- The money from these bond sales is used by the Depart- est payments would be about $67 million per year. ment of Veterans Affairs to purchase farms, homes, and Throughout its history, the Cal-Vet program has been mobilehomes which are then resold to California veterans. totally supported by the participating veterans, at no di- Each participating veteran makes monthly payments to rect cost to the taxpayer. However,if the payments made the department. These payments are in an amount suffi- by those veterans participating in the program do not fully cient-to (1) reimburse the department for its costs in pur- cover the principal and interest payments on the bonds, chasing the farm,home,or mobilehome, (2) cover all costs the state's taxpayers would pay the difference. resulting from the sale of the bonds,including interest on 2. Other Indirect Fiscal Effects the bonds, and (3) cover the costs of operating the pro- Borrowing Costs for Other Bonds. By increasing the gram. amount which the state borrows, this measure may cause Because the state is able to borrow at interest rates that the state and local governments to pay more under other are well below those charged to individuals,the veteran's bond programs. These costs cannot be estimated. monthly payments under this program are less than what Lower State Revenues. The people who buy these they otherwise would be. bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy Proposal these bonds instead of making other taxable investments, This proposition would authorize the state to sell $850 the state would collect less taxes.This loss of revenue can- million in general obligation bonds to continue the Cal- not be estimated. Vote June 3, 1986 4 P86 Veterans Bond Act of 1986 42 Argument in Favor of Proposition 42 Californians have long recognized a special debt to bonds or to run the Cal-Vet program! All principal and those young men and women who,at great personal sacri- interest owed to bondholders and all administrative costs fice, served their state and nation in time of war. This are repaid through contractual payments received from recognition has been expressed by a 63-year tradition of veterans who hold Cal-Vet loans. support for.Cal-Vet bonds,which,at no cost to the taxpay- The Cal-Vet Program not only provides assistance to our ers, provide California veterans with low-interest loans worthy veterans,but also a much-needed stimulus to Cali- used to purchase or improve homes, mobilehomes, and fornia's overall economy by the purchase of new and exist- farms. Opponents in the past have argued that the veter- ing homes and generating jobs and opportunities for busi- ans not be singled out for special privileges.This argument nesses, professions and trades connected with the state's totally ignores the fact that our veterans served their housing industry. country and state unselfishly fighting for the freedom that we all enjoy because of their service. It is surely a small This act was approved unanimously on bipartisan votes "privilege" that we as voters give to our veterans by ap- of both houses of the State Legislature. It is endorsed by proving this proposition and one which they greatly de- every major veterans' organization in the state. serve. We respectfully ask you to vote FOR the Veterans Bond This bond act will provide approximately 12,140 low- Act of 1986,Proposition 42,so that California can continue interest loans for veterans of Vietnam and other wars. To to keep its commitment to the thousands of qualified vet- date,nearly 400,000 veterans have been assisted in rejoin- erans who need and rightfully deserve this important ing the mainstream of California life through the owner- benefit. ship of a home or farm. The Cal-Vet Program is totally self-supporting, and no RICHARD E. FLOYD taxpayer money has ever been needed to repay Cal-Vet Member of the Assembly,53rd District No argument against Proposition 42 was filed Text of proposed law appears on pages 40-41 Voting isn't for the elect few! Dave Eaton, Roseville P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 5 43 Community Parklands Act of 1986 Official Title and Summary Prepared by the Attorney General COMMUNITY PARKLANDS ACT OF 1986. This act provides for a bond issue of one hundred million dollars ($100,000,000) to provide funds for acquiring,developing, improving,rehabilitating,or restoring urgently needed local and regional parks, beaches, recreational areas and facilities, and historical resources. Final Vote Cast by the Legislature on SB 806 (Proposition 43) Assembly: Ayes 66 Senate: Ayes 40 Noes 4 Noes 0 Analysis by the Legislative Analyst Background building recreational facilities,and (6) providing access to beaches. In past years,the state has given money to local agencies to buy, improve or restore parks and historic properties. Fiscal Effect The state has sold general obligation bonds to raise most Paying Off the Bonds. The state would make principal of this money. (General obligation bonds are backed fully and interest payments over a period of up to 20 years from by the state, meaning that the state will use its taxing the state's General Fund. The average payment would be power to assure that enough money is available to pay off about $9 million each year if the bonds were sold at an the bonds.) All but about $25 million of $561 million au- interest rate of 7.5 percent. thorized by previous bond acts will be spent or committed Borrowing Costs for Other Bonds. By increasing the to specific local projects by July 1986. amount which the state borrows, this measure may cause Proposal the state and local governments to pay more under other bond programs. These costs cannot be estimated. This measure permits the state to sell $100 million of Lower State Revenues. The people who buy these general obligation bonds for grants to counties, cities and bonds are not required to pay state income tax on the districts that-operate parks or recreational facilities. The interest they earn. Therefore, if California taxpayers buy State Department of Parks and Recreation would divide these bonds instead of making other taxable investments, the bond money among counties, cities, and districts, the state would collect less taxes.This loss of revenue can- based on their population (although certain minimum al- not be estimated. locations would be required). Counties and certain park Operational Costs. The local agencies that acquire or districts would receive 40 percent of the grant money. improve property with bond funds would have to pay the Cities and certain other districts would receive 60 percent additional costs to operate those properties. These costs of the grant money. The measure also requires the grant may be offset partly by revenues from the new properties, recipient to contribute 25 percent toward the cost of prop- such as entrance fees. These additional costs cannot be erty bought with the bond money. estimated. Each grant would have to be approved by the Legisla- Costs to Administer Grants. It would cost the Depart- ture. The grants could be used for many types of park- ment of Parks and Recreation $500,000 to $600,000 to ad- related purposes.These include (1) developing new parks minister the grant program.This measure provides $400,- and recreational trails, (2) fixing up existing parks, (3) 000 to the department for these costs. The remaining buying land or paying to prevent land near a park from $100,000 to$200,000 probably would come from the state's being developed, (4) buying historic sites or buildings, (5) General Fund. Repledge your allegiance—vote! Eunice Darwin, Fresno 6 P86. Text of Proposed Law This law proposed by Senate Bill 806 (Statutes of 1986, ($100,000,000) for grants to counties, cities, and districts Ch. 5) is submitted to the people in accordance with the for the acquisition, development, rehabilitation, or resto- provisions of Article XVI of the Constitution. ration of real property for park, beach, recreational, or This proposed law expressly adds sections to the Public historical resources preservation purposes. Resources Code;therefore,new provisions proposed to be 5711. (a) The total amount proposed to be appropriat- added are printed in italic type to indicate that they are ed for the program shall be included in a section in the new. Budget Bill for the 1987-88 fiscal year and each succeeding PROPOSED LAW fiscal year for consideration by the Legislature and shall SECTION 1. Chapter 3.7 (commencing with Section bear the caption "Community Parklands Program." 5700) is added to Division 5 of the Public Resources Code, (b) Commencing with the Budget Bill for the 1990-91 to read: fiscal year, any grant funds which were not accepted by a CHAPTER 3.7. COMMUNITY PARKLANDS ACT OF 1986 recipient or were not encumbered by the recipient within the three-year period specified in Section 5721 or which Article 1. General Provisions were restored pursuant to subdivision (c) of Section 5723 5700. This chapter shall be known and maybe cited as shall be available for appropriation for one or more the Community Parklands Act of 1986. projects of the type specified in Section 5712 that the 5701. The Legislature hereby finds and declares as fol- Legislature deems to be of the highest priority statewide. lows: (c) All appropriations are subject to all limitations (a) Itis the responsibility of the state to encourage,and enacted in the Budget Act and to all fiscal procedures assist in the provision of,better parks and enhanced recre- prescribed bylaw with respect to the expenditure of state ational opportunities for all citizens of California. funds unless expressly exempted from those laws by a stat- (b) Community, neighborhood, and regional parks, ute enacted by the Legislature. The section in the Budget beaches, recreational areas, recreational trails, and other Actshall contain proposed appropriations onlyfor the pro- recreational facilities,and the preservation ofhistoric sites gram contemplated by this chapter,and no funds derived and structures contribute significantly to a healthy physi- from the bonds authorized by this chapter may be expend- cal and moral environment and also contribute to the eco- ed pursuant to an appropriation not contained in that sec- nomic betterment of the state. tion of the Budget Act. (c) Many older parks and recreational facilities have 5712. The grant funds authorized for the program may deteriorated to the point where the original investment in be expended by the recipient for any of the following them may become lost, and prompt action is necessary to purposes or any combination thereof restore them to usefulness. (a) The rehabilitation, improvement, or restoration of (d) Accordingly,it is in the public interest for the state deteriorated roads, utilities, and other structures and to assist counties, cities, and districts in providing these facilities within existing parks and recreational areas. facilities for the use and enjoyment of citizens they serve. (b) Neighborhood, community, and regional parks. 5702. As used in this chapter, the following terms have (c) Beaches and public accessways to beaches. the following meanings: (d) Historical sites and structures. (a) `District"means any regional park district formed (e) Recreational areas and facilities. pursuant to Article 3 (commencing with Section 5500) of (f) Hiking, bicycling, and equestrian trails. Chapter 3 and any recreation and park district formed (g) Development rights and scenic easements in con- pursuant to Chapter 4 (commencing with.Section 5780). nection with any acquisition made for any purpose speci- With respect to any community which is not included fied in subdivisions (b) to (f),inclusive,so long as the right within a regional park district or a recreation and park or easement directly enhances the enjoyment or useful- district and in which no city or county provides parks or ness of the acquisition. recreational areas or facilities, `district"also means any Article 3. Administration other district which is authorized by statute to operate and manage parks or recreational areas or facilities, employs a 5720. (a) The grant funds authorized for the program full-time park and recreation director and offers year- shall be allocated to counties, cities, and districts on the round park and recreation services on lands and facilities, basis of their populations, as determined by the Depart- owned by the district, and allocates a substantial portion ment of Parks and Recreation in cooperation with the ofits annual operating budget to parks or recreation areas Department of Finance on the basis of,the most recent or facilities. verifiable census data and such other population data as (b) "Fund"means the Community Parklands Fund. the Department of Parks and Recreation may require to (c) "Program"means the Community Parklands Pro- be furnished by any county, city, or district. gram established by this chapter. (b) Forty percent of the total funds available for grants shall be allocated to counties and regional park, open- : Article 2. Community Parklands Program space,or park and open-space districts formed pursuant to 5710. (a) The proceeds of bonds issued and sold pur- Chapter 3 (commencing with Section 5500). Each coun- suant to this chapter shall be deposited in the Community ty's allocation shall be in the same ratio as the county s Parklands,Fund, which is hereby created population is to the state's total population, except that (b) All money deposited in the fund shall be available each county shall be entitled to a minimum allocation of for appropriation in the manner set forth in Section 5735 one hundred thousand dollars ($100,000). In any county in an amount not to exceed one hundred million dollars Continued on page 41 P86 7 43 Community Parklands Act of 1986 Argument in Favor of Proposition 43 Your YES vote for Proposition 43,the Community Park- priority needs that are identified, funds can be used for: lands Act of 1986, will assure better recreation facilities in . Rehabilitating and restoring deteriorated park facili- our communities. ties. Because of local funding problems, ..Playground equipment, swimming pools, picnic . Many park facilities are deteriorated or remain un- areas, baseball, basketball, tennis, and other sports developed for full public use. facilities. . New projects that have been in the planning stage for . Land for new neighborhood, community, and re- years have not been built. gional parks. Most of us know examples of these problems in our own . Improving public access to beaches. communities. . Restoring structures important to local history. Proposition 43 meets'this serious shortfall in funding for . Improving hiking, bicycling, and equestrian trails. local park and recreation projects and provides a reliable Over the years,state assistance for local parks has tradi- funding source for California's future recreational needs. tionally been provided through bond financing.Bonds are Our local parks are not keeping up with California's an especially appropriate funding source because they accelerating population growth. Over the next 20 years, spread the cost over the life of recreation projects. This the state's population is expected to increase by 7.3 mil- also takes into account the long-term public benefits from lion, to a total of over 31 million. investing in the rehabilitation and improvement of local . Putting this in perspective,we will have to meet the parks. recreational needs of an increased population almost Proposition 43 is supported by numerous cities, coun- as large as Los Angeles County's present population. ties, and local park districts, as well as by recreation, his- The demands placed on our local park system are over- torical, conservation, and business groups. It passed the whelming and continue to increase. In California, park- Legislature with broad bipartisan support. lands operated by local government receive an average of Proposition 43 is a responsible way to address our future 1,000 annual recreational visits per acre. This heavy use recreational needs. It guarantees that every county, city, rapidly wears out our city,county,and district park facili- and district providing park and recreation services will ties. By comparison, state parks receive only 55 annual receive funds in amounts reflecting the needs of the visits per acre, and national parks receive about 4 annual people who reside in each jurisdiction. visits per acre. Vote YES for better parks in our neighborhoods. There is a clearly demonstrated need for funds for local ROBERT PRESLEY park and recreation projects. Local agencies applying for State Senator,36th District funding under the most recent park bond measure Chairman,Senate Committee on Natural Resources and learned that qualified applications for local park grants far wildlife exceed the available funds. PETER V.UEBERROTH . In fact;last year the existing program provided,only Commissioner of Major League Baseball $1 in grant funds for every $5.80 in qualified project President,Los Angeles Olympic Organizing Committee applications. C.CARSON"CASEY" CONRAD Proposition 43 funds will be distributed according to a Executive Director,President's Council on Physical simple formula based on population. Each of our com- Fitness and Sports, 1970-1984 munities will receive funds and will decide its own priori- Chief, California Bureau of Athletics,Recreation, ties for how its share will be used. Depending on the local Health and Physical Education, 1953-1970 Rebuttal to Argument in Favor of Proposition 43 The supporters of Proposition 43 would have you be- lion ($525,000,000) for debt payments alone in the coming lieve that we haven't been spending any money on parks year. for decades. Based on current interest rates and a 20-year retire- The truth is we have been spending hundreds of mil- ment, Proposition 43 will cost us $178 million ($178,000,- lions of dollars on parks over just the past few years. 000) to pay off. Of course, all the cities, counties and other groups that We are on the same path that the federal government can get their hands on this money support Proposition 43 was on only a few short years ago. Now it is so far in debt because it's not their money they will be spending. that fiscal responsibility has become impossible. Please force your politicians to allocate money for parks We simply don't need more debt. If parks are such a out of the, tax dollars they already collect. We don't need high priority then let's fund them a sensible way and stop more debt hanging over our and our children's heads. wasting tax dollars on so many worthless programs. As of last December, we as California taxpayers had Vote "no" for fiscal irresponsibility and on Proposition general obligation bonds (debt) authorized in the amount 43. of$7.3 billion ($7,300,000,000),and$2.5 billion ($2,500,000,- DENNIS BROWN 000) of that was still unissued. We will pay over $525 mil- Member of the Assembly,58th District 8 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Community Parklands Act of 1986 43 Argument Against Proposition 43 It's time that the taxpayers of the State of California had the voters approved a $370 million ($370,000,000) Parks the straight scoop on what these multitude of bond issues and Recreation bond issue two years ago and have sp- are all about. proved over $1.2 billion ($1,200,000,000) in park funds Your State Legislature has been playing a shell game over the past few elections. And of that, $420 million with you for years, and, of course, the politicians always ($420,000,000) hadn't even been issued as of last Decem- win. ber. It's really very clever. You see,if the politicians can get As mentioned above, your politicians don't want to use the voters to approve bond issues for motherhood and this money for parks so that they can spend it on some- apple pie items, like parks, then they will have free rein thing else. over all of your tax dollars to waste on multibillion-dollar Unfortunately, many voters are under the assumption loser programs,like welfare and other giveaway schemes. that bond money is free money. Nothing could be further Proposition 43,the Community Parklands Act of 1986,is from the truth. exactly one such program.Who can be against more parks If Proposition 43 passes,it will cost the taxpayers approx- and open space? imately $185 million ($185,000,000) to service that debt. Proposition 43 should also be defeated because our State Please force your legislators in Sacramento to make the Department of Finance has predicted that over $70 mil- tough decisions they were elected to make on how to lion ($70,000,000) will be available for parks next year and spend the tax dollars our government now collects. Don't approximately $40 million ($40,000,000) the year after give them another $100 million ($100,000,000) to play that. This is money that will already be paid to the state around with. by the working men and women of California without Vote "NO" on Proposition 43. having to raise more funds through the expensive bond process or by raising taxes. DENNIS BROWN To prove just how absurd this new request for money is, Member of the Assembly,58th District Rebuttal to Argument Against Proposition 43 The opponent's argument ignores the real and demon- The existing program,which will expire next year,has strated need for the funds for local parks that will be pro- not met the needs of local communities. vided by Proposition 43. Project applications have far exceeded available funds. . The simple truth is that local governments are unable The purpose of Proposition 43 is to supplement these to meet the constantly growing park and recreation funds, assuring that our communities can meet present needs of our communities. and future recreational needs. This measure is the responsible, traditional, and time- Proposition 43 makes economic sense and deserves tested method of helping our cities, counties, and park your vote. districts to keep up with increasing population growth and Vote"yes"for Proposition 43.You and your community the steady deterioration of older parks. deserve the park and recreation improvements it will pro- . Don't be misled by the opponent's figures. vide. His figures go back to 1964. That was a generation ago! ROBERT PRESLEY Obviously, our communities have grown considerably State Senator,36th District since then,creating new needs for local recreational facili- Chairman,Senate Committee on Natural Resources and ties.Also,the figures he cites include funding for programs Wildlife which aren't included in Proposition 43. The opponent seriously exaggerates the funds that will JIM COSTA be available for local parks in 1986.He includes funding for Member of the,Assembly,30th District unrelated programs and federal funds that California Chairman,Assembly Committee on Water,Parks and Wildlife probabl will never get because of proposed cuts in the CHARLES O. DAVIS federal budget. President, California Park and Recreation Society Polls are open from 7 a.m. until 8 p.m. P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 9 44 Water Conservation and Water Quality Bond Law of 1986 Official Title and Summary Prepared by the Attorney General WATER CONSERVATION AND WATER QUALITY BOND LAW OF 1986.' This act provides for a bond issue of one hundred fifty million dollars ($150,000,000) to provide funds for water conservation,groundwater recharge,and drainage water management, and clarifies language in the Clean Water Bond Law of 1984. Final Vote Cast by the Legislature on AB 1982 (Proposition 44) Assembly: Ayes 54 Senate: Ayes 35 Noes 18 Noes 0 Analysis by the Legislative Analyst natural part of the soil (such as selenium) or by chemicals, Background such as pesticides, that are used on the crops. Two state agencies (the Department of Water Re- There has never been a state program to provide loans sources and the State Water Resources Control Board) are or grants for treating or disposing of agricultural drainage principally responsible for managing the state's supply of water. water and protecting its quality. The Department of Wa- The State Water Resources Control Board has identified ter Resources seeks to ensure that there will be enough five areas in the state, totaling more than 100,000 acres of water to meet the needs of the population. Water conser- land,where agricultural drainage water is causing a pollu- vation and groundwater recharge are two ways of making tion problem. By 1995 the board expects the number of better use of existing water supplies. The State Water Re- acres with agricultural drainage problems to double. sources Control Board has the job of keeping the state's One area of the state with water drainage problems is waters free of pollution.A growing problem in some parts the western San Joaquin Valley, which contains the Kes- of the state is pollution caused by drainage from agricul- terson Wildlife Refuge.The board has ordered the federal tural land. Bureau of Reclamation to clean up the refuge, which re- Water Conservation. Water conservation projects ceives agricultural drainage water that is polluted with typically include repair or replacement of leaky water selenium. The polluted drainage water has harmed the lines and canals, or of inefficient agricultural irrigation wildlife that use the refuge. To keep the refuge from be- systems. coming more polluted,the bureau has set a deadline after Voters approved the Clean Water Bond Law of 1984, which the drainage to the refuge must stop. As a result, which, among other things, allowed the state to sell $10 either irrigation must cease,or the drainage water must be million in bonds to finance projects intended to conserve cleaned up or sent to another place. water.Financing for these projects is provided in the form of a loan to public agencies. The average amount of these Proposal loans ranges from $1 million to $1.5 million. The Depart- This measure permits the state to sell $150 million of ment of Water Resources, which manages the loan pro- general obligation bonds. (General obligation bonds are gram, expects that all of the $10 million will be allocated backed fully by the state, meaning that the state will use by March 1986. According to the department, about 55 its taxing power to assure that enough money is available agencies that applied for water conservation loans have to pay off the bonds.) The money raised by the bond sale been turned down because there was not enough money. would bd used for the following purposes: Groundwater Recharge. Groundwater recharge facili- 1. Water Conservation and Groundwater Recl�rge— ties typically include ditches, pits, streambeds, or wells, $75 Million. The measure provides $75 million for loans where water is placed and allowed to seep underground. to public agencies for studies and construction d water The water is stored underground and pumped out when conservation and groundwater recharge projects. The in- needed. terest rate on these loans would be one-half of the interest There. has never been a program to provide loans or rate that the state pays on the bonds. The Department of grants for groundwater recharge projects. The depart- Water Resources could use up to$3.75 million of the bond ment estimates that at least 25 water agencies in both money to manage the program. urban and rural areas want loans for groundwater re- 2. Agricultural Drainage Water Projects—$75 Million. charge facilities. The department also estimates that the The measure provides$75 million for loans to public agen- average loan would range from $1 million to $5 million. cies for studies and construction of treatment,storage,and Agricultural Drainage Water. When crops are irrigat- disposal facilities for agricultural drainage water. The fin- ed, the water that drains from the land may be polluted. terest rate on these loans also would be one-half of the rate The pollution can be caused by toxic.minerals that are a paid by the state. The State Water Resources Control 10 P86 Board would be allowed to use up to $3.75 million of the be reimbursed by the borrower) and (2) interest on the bond money to manage this program. bonds that is not covered by payments from local agencies Fiscal Effect because these agencies are charged a lower interest rate. Borrowing Costs for Other Bonds. By increasing the Paying Off the Bonds. The state would make principal amount which the state borrows, this measure may cause and interest payments over a period of up to 20 years from the state and local agencies to pay more under other bond the state's General Fund. The average payment would be programs. These costs cannot be estimated. about $13.4 million each year if the bonds were sold at an Lower State Revenues. The people who buy these interest rate of 7.5 percent. bonds are not required to pay state income tax on the If all the loans were repaid on time, the net state cost interest they earn. Therefore, if California taxpayers buy would average $3.5 million per yeaf for 20 years,bringing these bonds instead of making other taxable investments, total state costs to$70 million.These costs would consist of: the state would collect less taxes.This loss of revenue can- (1) the state's administrative expenses (which would not not be estimated. Text of Proposed Law This law proposed by Assembly Bill 1982 (Statutes of and promote the health, safety, and welfare of its people 1986,Ch.6) is submitted to the people in accordance with and the environment. the provisions of Article XVI of.the Constitution. (i) Voluntary, cost-effective capital outlay water con- This proposed law adds sections to the Water Code; servation programs can help meet growing demand for therefore,new provisions proposed to be added are print- clean and abundant water supplies. ed in italic type to indicate that they are new. (j) Recharge of groundwater basins is an effective way to maximize availability of scarce water supplies through- PROPOSED LAW out the state. (k) California's abundant streams, rivers, bays, estuar- SECTION 1. Chapter 6.1 (commencing with Section ies, and groundwater are threatened with pollution from 13450) is added to Division 7 of the Water Code, to read: agricultural drainage,water which could threaten public CHAPTER 6.1. WATER CONSERVATION AND WATER health and fish and wildlife resources and impede eco- QUALITY BOND LAW OF 1986 nomic and social growth ifleft unchecked.Proper contain- ment structures and treatment facilities could provide for 13450. This chapter shall be known and may be cited the handling of agricultural drainage water in an environ- as the Water Conservation and Water Quality Bond Law mentally sensitive manner. of 1986. (1) (1) It is the intent of this chapter to provide funds 13451. The Legislature finds and declares all of the for the construction of cost-effective containment struc- following: tures and treatment facilities for the treatment, storage (a) An abundant supply of clean water is essential to and disposal of agricultural drainage water. the public health, safety, and welfare. (2) It is the further intent of this chapter to provide (b) An abundant supply of clean water fosters the funds for voluntary, cost-effective capital outlay water beauty of California's environment, the expansion of in- conservation programs and groundwater recharge facili- dustry and agriculture, maintains fish and wildlife, and ties cooperatively carried out by local agencies and the supports recreation. department. (c) The state's growing population has increasing 13452. As used in this chapter, and for purposes of this needs for clean water supplies and adequate treatment chapter,as used in the State General Obligation Bond Law facilities. (Chapter 4 (commencing with Section 16720) of Part 3 of (d) It is of paramount importance that the water re- Division 4 of Title 2 of the Government Code), the follow- sources of the state be protected from pollution and con- ing words have the following meanings: served, and that the groundwater basins of the state be (a) "Board"means the State Water Resources Control recharged whenever possible to ensure continued eco- Board. nomic, community, and social growth. (b) "Committee"means the Water Conservation and (e) The chief cause of water pollution is the discharge Water Quality Finance Committee created by Section of inadequately treated waste into the waters of the state. 13454. (f) Local agencies have the primary responsibility for (c) `Department" means the Department of Water the construction, operation, and maintenance of facilities Resources. to cleanse our waters, to conserve water, and recharge (d) `Drainage water management units" mean land groundwater basins. and facilities for the treatment,storage,or disposal ofagri- (g) Rising costs of construction have pushed the costs of cultural drainage water which, if discharged untreated, constructing treatment facilities and facilities to conserve would pollute or threaten to pollute the waters of the water and recharge groundwater basins beyond the ability state. of local agencies to pay. (1) Drainage water management units may include (h) Because water knows no political boundaries, it is any of the following. desirable for the state to contribute to the construction of (A) A surface impoundment which is a natural topo- these facilities in order to meet its obligations to protect Continued on page 42 P86 . 11 44 Water Conservation and Water Quality Bond Law of 1986 Argument in Favor of Proposition 44 California is a growing state, whose increasing popula- tecting water quality. Much of our efforts have focused on tion and expanding economy rely on a clean, abundant treating municipal sewage water before it is discharged to supply of water. There is a direct relationship between our rivers, bays, and ocean waters. Today, rural areas how we use water and water supply. Since supply is lim- throughout the state need to implement better treatment ited, we should use our water resources in.the most effi- and containment methods because of the salt and trace cient manner possible. element buildup in farm drainage water. This drainage Proposition 44 will provide much-needed loans for problem will progressively worsen unless we take positive voluntary, cost-effective water conservation programs, steps to treat and contain it. groundwater recharge facilities,and agricultural drainage Proposition 44 provides funding for the containment water treatment: and treatment of agricultural drainage water in an envi- Two years ago, voters approved the Clean Water Bond ronmentally safe manner, much in the same manner as Law, which provided funding for wastewater treatment, municipal sewage is treated today. The principal cause of water reclamation and water conservation programs.Ten water pollution is the discharge of inadequately treated million dollars was dedicated to water conservation pro- waste into our rivers and groundwater. Californians have grams. The state has received 65 applications from local always placed a high priority on treating wastewater so agencies statewide requesting nearly $90 million in assist- that it can be safely discharged or reused. We should con- ance for water conservation alone.Proposition 44 will ena- front the rural drainage problem with the same commit- ble these local agencies to conserve water now being lost ment we've made in treating municipal sewage water. due to leaking pipes and unlined ditches and canals. An abundant supply of clean water will preserve the Another way to use our water more.efficiently is beauty of California's environment, maintain fish and through the refilling—or recharge—of our underground wildlife, and support recreation. A continued supply of water supply. Many areas of California are using ground- clean water will also ensure the vitality of industry and water faster than nature can replenish it. Groundwater agriculture.Most importantly,however,a clean and abun- recharge has been practiced here for almost 90 years. It is dant supply of water is necessary to preserve and protect a proven method of placing surplus surface water from public health. extremely wet years into available storage space under- We respectfully urge your support of Proposition 44. ground so that it can be used in dry years. This under- Our water resources are too precious to squander away. ground space is available in the great Central Valley and JIM COSTA in valley areas in coastal and southern California. More- member of the Assembly,30th District over, as storing surface water behind dams has become Chairman,Assembly Water, Parks and Wildlife Committee more expensive,storing water underground where it does DAVID N. KENNEDY not evaporate becomes more practical, efficient,and eco- Director, California Department of Water Resources nomical. JOHN K. VAN DE KAMP Californians have made a strong commitment to pro- Attorney General of California Rebuttal to Argument in Favor of Proposition 44 Water conservation, storage and treatment are impor- legislative approval, and the funds are supposed to be tant. "loaned" to local agencies in charge of the projects. The question is: WHO SHOULD PAY FOR THESE There is no requirement in Proposition 44, however, PROJECTS? that these loans be fully repaid. Loans may be made at .Under Proposition 44, taxpayers would pay$150 million "50% of the interest rate" payable by taxpayers on the plus a fortune in interest on the money borrowed by the bonds, and any repayments "shall be available" to help state through the sale of bonds. In addition, taxpayers repay the bonds but need not be used for that purpose. would pay for the hidden costs which attend all sales of The bottom line is that,under Proposition 44,taxpayers tax-free government bonds (see ARGUMENT AGAINST would end up subsidizing many rural area projects (in- PROPOSITION 44). cluding the'treatment of agricultural wastewater) which Technically, and by way of clarification, sale of the are more properly funded by the businesses involved. bonds would be controlled by the "committee" of state For this reason, I respectfully recommend a vote government officials, selection of particular projects AGAINST Proposition 44. would be made by the State Water Resources Control GARY B. WESLEY Board and the Department of Water Resources subject to Attorney at Law 12 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Water Conservation and-Water Quality Bond Law of 1986 44 Argument Against Proposition 44 Is Proposition 44 worth the high cost to taxpayers? an investment in the private sector if the buyer is in the o It is a proposal by the Legislature to sell $150 million in 50% federal tax bracket.Why?Because half of the interest bonds and use the money raised to fund local water con- earned from a private investment would be taken by the servation, treatment and drainage programs to be select- government in taxes. ed by a "committee" of state government officials. When high income-tax bracket investors buy tax-free Fully one-half of the money raised ($75 million) must be bonds, they cannot invest that money in the private sec- deposited in the "Agricultural Drainage Water Account." tor. This not only reduces the amount of capital available Clearly, big agricultural interests in California are con- for private enterprise (as does running up a huge govern- tinuing to find favor with our legislators (and the Gover- ment deficit and borrowing the difference each year),but nor, who authorized the placing of this measure on the it also deprives the federal and state governments of the ballot). One of the questions raised by Proposition 44, tax revenues that would have been received from income then,is whether California taxpayers wish to further subsi- produced through investment in the private sector. dize big agricultural interests that are quite capable of When government receives less tax money from per- paying their own business expenses. sons and corporations that invest in tax-free bonds, EV- Under Proposition 44, taxpayers would have to repay ERY OTHER FEDERAL AND STATE TAXPAYER the money borrowed through the sale of bonds ($150 mil- MUST PAY MORE TO MAKE UP THE DIFFERENCE lion) plus interest. (unless,of course,government reduces its expenditures!). In addition, there are hidden costs in every bond meas- Raising money by selling bonds which earn tax-free in- ure. The bonds themselves pay far less than market-level terest is extremely costly to taxpayers. A vote AGAINST interest;however,the bonds are purchased by investors in this measure means that the projects to be funded,includ- high income-tax brackets because the interest received is ing$75 million for agricultural drainage,are not worth the completely tax free. high cost to taxpayers. For a buyer of these bonds, 7% annual interest, for ex- GARY B. WESLEY ample,would be the equivalent of 14% interest earned on Attorney at Law Rebuttal to Argument Against Proposition 44 Proposition 44, the Water Conservation and Water state and for local governments. We all win with the pas- Quality Bond Law of 1986, makes good sense for all Cali- sage of Proposition 44. fornians. It will provide much-needed funding for water All projects funded under this loan program must com- conservation programs, groundwater recharge facilities, ply with water quality laws and standards. If you favor the and drainage water treatment and containment works. wise and efficient use of our water resources and believe Proposition 44 is a loan program,which means the cities, that we should treat wastewater before discharging it into counties and other local governmental agencies that bor- our streams and rivers,then you should vote yes on Propo- row money will pay it back. The sale of tax-exempt bonds sition 44. is sound public policy. California voters have overwhelm- Proposition 44 will help satisfy California's need for a ingly approved the use of tax-exempt bonds in other ballot clean and abundant supply of water. Please join us in sup- measures like the Clean Water Bond Law of 1984. Local porting Proposition 44. governments could not afford to build these projects with- JIM COSTA out Proposition 44 unless they imposed new taxes or redi- Member of the Assembly,30th District rected funds from existing programs. Chairman,Assembly Water,Parks and Wildlife Committee The bond proceeds from the passage of Proposition 44 DAVID N. KENNEDY will create jobs in communities throughout the state and Director, California Department of Water Resources provide a boost to local businesses. This new economic JOHN K. VAN DE KAMP activity will also generate greater tax revenues for the Attorney General of California Your vote won't register unless you do. Register now! Anita Goodin, Sacramento P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 13 EDeposit of Public Moneys in Credit Unions Official Title and Summary Prepared by the Attorney General DEPOSIT OF PUBLIC MONEYS IN CREDIT UNIONS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. The California Constitution currently provides that Legislature may provide for the deposit of public moneys in any bank or savings and loan association in this state. This measure authorizes the Legislature to also provide for the deposit of public moneys in any credit union in this state. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, this measure has no direct fiscal effect. Legislation already approved to implement this measure could result in greater interest income to state and local governments by increasing competition for the deposit of public moneys. Final Vote Cast by the Legislature on ACA 21 (Proposition 45) 0 Assembly: Ayes 69 Senate: Ayes 34 Noes 3 Noes 0 Analysis by the Legislative Analyst Background The California Constitution gives'the Legislature specif- ic authority to allow for the deposit of public moneys in banks or savings and loan associations located in Califor- nia. (Public moneys are funds belonging to, or in the cus- tody of, the state government or any local government.) The Superintendent of Banks oversees deposits of pub- lic moneys made by local agencies. The State Treasurer performs a similar function for deposits of public moneys made by the state. Proposal This constitutional amendment would authorize the Legislature to provide for the deposit of public moneys in credit unions located in California. The Legislature has enacted a measure to permit such deposits,but the act will take effect only if the voters approve this amendment. Fiscal Effect By itself, this measure has no direct fiscal effect. The legislation already approved to implement this measure could result in greater interest income to the state and local governments by increasing competition for the deposit of public moneys. You count your blessings—we'll count your VOTE! Karen Alarcon, San Martin 14 P86 Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 21 (Statutes of 1984,Resolution Chapter 106) expressly amends the Constitution by amending a section thereof, therefore, existing provisions proposed to be de- leted are printed insty-iltee;it tie and new provisions proposed to be inserted or added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE XI, SECTION 11 SEC. 11. (a) The Legislature may not delegate to a private person or body power to make,control,appropri- ate,supervise or interfere with county or municipal corpo- ration improvements,money,or property,or to levy taxes or assessments, or perform municipal functions. (b) The Legislature may, however, provide for the deposit of public moneys in any bank in this state or in any savings and loan association in this state or any credit un- ion in this state and for the payment of interest,principal and redemption premiums of public bonds and other earl deeees evidence of public indebtedness by banks within or without this state. It may also provide for investment of public moneys in securities and the registration of bonds and other evidences of indebtedness by private persons or bodies, within or without this state, acting as trustees or fiscal agents. If you have any questions about voting call your county clerk or registrar of voters P86 15 4J� Deposit of Public Moneys in Credit Unions Argument in Favor of Proposition 45 Your yes vote on Proposition 45 would authorize the funds that they have for deposit. The public finance offi- Legislature to designate credit unions as depositories of cers would be responsible for the review and selection of public funds. This amendment would simply add credit any credit union from among competing financial institu- unions to the two financial institutions which are already tions. authorized to receive public funds:banks and savings and Credit unions which receive public funds would be loan associations. regulated by the Superintendent of Banks and would be Credit unions are cooperative financial institutions that subject to the same statutory requirements as other finan- provide traditional consumer banking services to their cial institutions. members. They are required to be federally insured, al- Adopted by an overwhelming vote of both the Demo- though state credit unions may elect to participate in a crats and Republicans in the State Legislature, this meas- private insurance or guaranty corporation that is accepta- ure is supported by the California Credit Union League, ble to the state regulator instead of federal insurance. the Department of Corporations and the 1,158 credit un- Presently federal law designates federal credit unions as ions in California. financial institutions which are eligible to receive public We believe that the change proposed in Proposition 45 funds and act as fiscal agents of the United States.Federal would add flexibility to present investment options avail- law also designates federally insured state credit unions as able for public finance officers,while adding no risk to the fiscal agents and depositories of the United States govern- expanded choice. We strongly urge you to vote YES on ment. This change would permit the Legislature to pro- Proposition 45. vide similar statutory provisions for federal and state cred- ALISTER McALISTER it unions in California. Member of the Assembly, l8th District This constitutional amendment would permit the public officers who are responsible for the investment of public LEON WILLIAMS Supervisor, r, 4th District funds the choice of investing in a credit union if that finan- County of San Diego cial institution would provide the best return to the public ROY D. BYSEGGER agency. This, in turn, would ensure that state and local City Manager governments receive a competitive rate for the public City of Crescent City Rebuttal to Argument in Favor of Proposition 45 As an organization composed of public officers who are delays of years might be encountered before all moneys responsible for the investment of public funds,the Califor- are returned to depositors.Also during this period of time nia Municipal Treasurers Association at a statewide gen- there is no statutory duty to pay further interest on depos- eral membership meeting voted opposition to Proposition its. 45. Our no-vote position on Proposition 45 was adopted by Many of.our members are active credit union partici- an overwhelming majority of our general assembly. This pants in their own jurisdictions and respect the traditional gathering was composed of those persons responsible for role of these cooperative financial institutions in serving the investment and management of public funds. their members.As guardians of the public trust,however, We believe that the changes proposed in Proposition 45 we must still urge your no vote on this issue. are not in the best interest of sound dollar management Proponents of Proposition 45 argue that they merely for public agencies in California. wish to offer another investment option to ensure that state and local governments receive competitive rates on THOMAS C. RUPERT public money deposits.They further argue that credit un- City Treasurer ions that accept public funds would be subject to regula- City of Torrance tion by the Superintendent of Banks. Unfortunately, the DONALD TARNOW Immediate Past President authority of this regulatory agency cannot dictate the California Municipal Treasurers Association methods of dollar settlement to depositors in some specific LIANE C. SCOTT instances of default or closure. This is the issue. President In cases of voluntary closure of a credit union, time California Municipal Treasurers Association 16 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Deposit of Public Moneys in Credit Unions 45 Argument Against Proposition 45 In voicing opposition to this constitutional amendment ment. This process can take from six months to two years the California Municipal Treasurers Association does not or even longer to complete. During the period of liquida- wish to imply that state or federal credit unions in Califor- tion no further interest accrual on deposits is required to nia are bad-risk depositories for their member users. be paid. Opposition to this proposal is based solely upon the need Remaining closures during the year 1985 were of an to protect interest accrual on public money deposits and involuntary nature. Under this circumstance, deposits up to provide absolute liquidity of dollars deposited to ensure to$100,000 are insured by an insurance fund which carries availability when and as they are needed. the full faith and credit of the United States government. Major concerns are centered around the form of deposit Under the instance of involuntary closure depositors insurance covering credit union share deposits and par- (shareholders) are normally paid within a two-week ticularly the promptness in which taxpayers'dollars can be period. returned in cases of default. Again,opposition expressed by the California Municipal Our association has been informed by the National Treasurers Association is based upon the reasons ex- Credit Union Administration (a federal agency).that cred- pressed herein and is not intended to reflect upon the it union closures can be of a voluntary or involuntary na- creditworthiness of state or federal credit unions operat- ture. During this past year a total of 43 closures were ing in California. recorded nationally. During the year 1985 the majority of credit union clo- THOMAS C. RUPERT sures in the United States were of a voluntary nature. City Treasurer Unfortunately, voluntary closures, i.e. circumstances in DONALD City of Torrance TARNOW which credit unions are solvent and simply wish to cease Immediate Past President doing business, are the types of closures that can trigger California Municipal Treasurers Association major delays in the return of moneys to shareholders. Un- MANE C. SCOTT der this circumstance depositors must wait until assets are President liquidated in order to provide sufficient funds for repay- California Municipal Treasurers Association Rebuttal to Argument Against Proposition 45 Opponents' arguments of possible delays in withdrawal The result is that existing statutes provide protection so of investments and potential loss of interest when a credit a public agency would not have to wait to withdraw public union'voluntarily liquidates is misplaced. funds or lose income in the event of a voluntary liquida- First,existing statutes ensure that the treasurer can pro- tion. tect the local agency through the statutorily required con- Secondly, the closures cited by opponents are national tract with the financial institution. The money deposited figures. In 1985 there were no voluntary liquidations in is deemed to be in the treasury of the local agency and is California. In 1983 and 1984 there were two voluntary required to be secured unless waived by the treasurer. liquidations. Both were very small credit unions. The contract must contain the conditions upon which the Since the likelihood of a voluntary liquidation is remote securities are converted to money and the procedure for and the statutes protect local agencies from delays in re- conversion. The statute expressly provides that, pursuant ceipt of the deposited moneys or income from the invest- to the contract and on the demand of the treasurer, the ment, the concerns expressed are misplaced. We urge a securities which secure the public funds shall be convert- yes vote for this measure. ed into money in order for the public agency to receive ALISTER McALISTER the deposited funds and "any accrued interest due."The Member of the Assembly, 18th District securities pledged as collateral must equal 110% of the HAL E. BREWER public funds on deposit. Director of Finance, City of Riverside Surprise the experts! Vote. Ida Longshore, La Jolla P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 17 46 Property Taxation. Official Title and Summary Prepared by the Attorney General PROPERTY TAXATION.LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently Constitution limits ad valo- rem property taxes to maximum of 1% of the property's full cash value. An exception to the I% limit is provided for ad valorem taxes or special assessments to pay interest and redemption charges on indebtedness approved by the voters before July 1, 1978.This measure would provide a further exception to the I% limit;it would be inapplicable to bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978,by two-thirds of the votes cast by the voters voting on the proposition. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, measure has no fiscal effect. No increase can occur in property tax rate unless two-thirds of those voting in local election approve issuance of general obligation bonds. State costs for tax relief programs could increase, because cost of these programs rises as local property tax rate increases. State income tax revenues could decline as taxpayers deduct greater amounts for property tax payments on state income tax returns. Final Vote Cast by the Legislature on ACAM (Proposition 46) Assembly: Ayes 72 Senate: Ayes 30 Noes 2 Noes 2 Analysis by the Legislative Analyst Background ernments and schools to increase the property tax rate Under the California Constitution, real property (such above 1 percent for the period necessary to pay off new as land and buildings) is taxed on the basis of its"full cash general obligation bonds under the following conditions: value."The Constitution limits the tax rate on real proper- . two-thirds of those voting in a local election must ty to 1 percent of its full cash value. This limit, however, approve the issuance of the bonds; and may be exceeded in order to raise the money needed to . the money raised through the sale of the bonds must pay off debt approved by the voters prior to July 1, 1978. be used exclusively to purchase or improve real prop- Before 1978, local governments and school districts is- erty (that is, land and buildings). sued "general obligation" bonds to finance land acquisi- tion and building construction. General obligation bonds are backed by the issuer's promise to raise its property tax Fiscal Effect rate to assure that enough money is available to pay off the bonds. The 1-percent limit on the property tax rate, By itself, this measure has no fiscal effect. The measure however, has prevented local governments from issuing merely permits local voters to approve an increase in the new general obligation bonds. property tax rate. No increase can occur in the property Consequently, local governments and schools must ei- tax rate if this measure is adopted, unless two-thirds of ther forgo land acquisition and building construction or those voting in a local election approve the issuance of finance these activities in other ways,such as through the general obligation bonds. sale of "revenue" bonds or through lease-purchase ar- If local voters approve the issuance of new general obli- rangements. These financing alternatives generally re- gation bonds,state costs and revenues could be affected in quire the local government or school district to pay a high- two ways. First, state costs for tax relief programs could er rate of interest than the rate it would have to pay on . increase, because the cost of these programs rises as the general obligation bonds. local property tax rate increases. Second,state income tax revenues could decline as taxpayers deduct greater Proposal amounts for property tax payments on their state income This constitutional amendment would allow local gov- tax returns. The most effective letter going to government: LED Vote Tuesday. Michael Schaefer, La Jolla 18 P86 Property Taxation 46 Argument in Favor of Proposition 46 Proposition 46 protects your taxes from wasteful spend- We all know the bad condition of our local streets and ing. roads and the health hazards of toxic waste and inade- Proposition 46 requires a two-thirds vote by local tax- quate sanitation facilities. Proposition 46 will give you a payers to use general obligation bonds to build and repair cheaper and quicker way to solve these problems. police and fire stations, community hospitals, and neigh- General obligation bonds can be used only for construct- borhood schools. General obligation bonds mean major ing essential, permanent public facilities. They cannot be savings for taxpayers. used for government employee salaries or pensions, and The State of California is already using general obliga- they cannot be used for unnecessary or temporary items tion bonds. IF LOCAL GOVERNMENTS HAD BEEN like office equipment and government cars. ABLE TO USE THESE BONDS LAST YEAR THEY Proposition 46 will continue the tradition of strengthen- WOULD HAVE SAVED MORE THAN$50 MILLION IN ing local voter control over local financial issues. No local INTEREST COSTS. agency will be able to spend any of your tax dollars on Proposition 46 puts local voters, not the politicians, in general obligation bonds without your approval. charge of determining when—and if—general obligation Best of all, Proposition 46 will mean LOWER interest bonds should be used. Proposition 46 returns decision- payments and a saving of tens of millions of dollars to making authority to local taxpayers: taxpayers. Without Proposition 46, local government officials will Vote yes on Proposition 46. continue to use so-called "creative financing" to borrow money at a higher cost to you. And they will continue to DOMINIC CORTESE do this without your vote of approval. Member of the Assembly,24th District The extra money spent on more expensive borrowing Chair,Assembly Local Government Committee means less money for needed projects. WHEN CITIES RICHARD P. SIMPSON AND COUNTIES USE MORE COMPLICATED FI- Executive vice President NANCING SCHEMES FOR LOCAL PROJECTS, MORE California Taxpayers'Association MONEY GOES TO PAY INTEREST, LAWYERS, AND KIRK WEST FINANCIAL CONSULTANTS. THIS ADDS TO YOUR President TAX BILL. California Chamber of Commerce No argument against Proposition 46 was filed Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 55 (Statutes of 1984,Resolution Chapter 142) expressly amends the Constitution by amending a section thereof; therefore, existing provisions proposed to be de- leted are printed in strikeetit type and new provisions proposed to be inserted or added are printed in italic type to indicate that they are new. . PROPOSED AMENDMENT TO ARTICLE XIII A, SECTION 1 (b) The limitation provided for in subdivision (a) shall not apply toad valorem taxes or special assessments to pay the interest and redemption charges on (1) any indebted- ness approved by the voters prior to the#me 616 seetien beeemes erne.July 1, 1978, or (2) any bonded indebt- edness for the acquisition or improvement of real proper- ty approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition. P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 19 7 Allocation of Vehicle License Fee Taxes to Counties and Cities Official Title and Summary Prepared by the Attorney General ALLOCATION OF VEHICLE LICENSE FEE TAXES TO COUNTIES AND CITIES. LEGISLATIVE CONSTITU- TIONAL AMENDMENT. At present the state.is not required by the Constitution to allocate revenue from taxes imposed pursuant to the Vehicle License Fee Law to local governments. However,specified portions of these revenues are statutorily required to be allocated to counties and cities. This measure would require all revenues from taxes. imposed pursuant to the Vehicle License Fee Law to be allocated to counties and cities on and after July 1 following its adoption except fees on trailer coaches and mobilehomes and the costs of collection and refunds. Summary of Legislative Analyst's estimate of net state and local government fiscal impact:This measure would have no direct fiscal effect.It would prevent Legislature from changing the law to take any portion of vehicle license fees away from counties and cities. However, measure would not necessarily affect either the level of state expenditures and revenues or the amount of vehicle license fees received by individual counties and cities as state still could reduce other forms of aid to local government or change existing formula for dividing vehicle license fee revenues between counties and cities. Final Vote Cast by the Legislature on SCA 23 (Proposition 47) Assembly: Ayes 62 Senate: Ayes 27 Noes 11 Noes 2 Analysis by the Legislative Analyst However, the measure would'.permit the Legislature to Background change the allocation of these moneys between counties Motor vehicles in California are subject to an annual and cities. This measure does not affect the allocation of vehicle license fee. This fee takes the place of any local fees on trailer coaches and mobilehomes. personal property taxes on motor vehicles. If approved by the voters, this measure would apply to The state collects the vehicle license fee and distributes the revenues from the fees imposed on and after July 1, the funds (less collection costs and refunds) to counties 1986. and cities.Counties receive about 60 percent of the money ($750 million in fiscal year 1985-86) and cities receive the Fiscal Effect remaining 40 percent ($510 million in fiscal year 1985-86). This measure would have no direct fiscal effect.It would This money may be spent for any public purpose. prevent the Legislature in the future from changing the The formula by which this money is allocated was law to take any portion of the vehicle license fees away changed temporarily in past years so that the state could from counties and cities.However,the measure would not spend a portion of the revenue. necessarily affect either the level of state expenditures and revenues or the amount of vehicle license fees re- Proposal ceived by individual counties and cities. The state still This constitutional amendment would require the state could reduce other forms of aid to local government or to allocate to counties and cities all vehicle license fee change the existing formula for dividing vehicle license revenue (less collection costs and authorized refunds). fee revenues between counties and cities. Please dispense your common sense. Vote. Roger Galatoire, San Francisco 20 P86 Allocation of Vehicle License Fee Taxes to Counties and Cities 47 Argument in Favor of Proposition 47 Proposition 47 protects your local funds from raids by Besides reducing local services, the Legislature also the Legislature. threw local government budgets into confusion. PROPOSITION 47 MAKES SURE YOUR VEHICLE LI- Year after year,local officials had to plan city and county CENSE FEE GOES HOME TO YOUR CITY AND budgets without knowing how much of your vehicle li- COUNTY—WHERE YOU HAVE THE MOST CON- cense fees eventually would make its way back home. -TROL OVER HOW IT IS SPENT. THREE YEARS IN A ROW, THE LEGISLATURE Proposition 47 does NOT raise your vehicle license fee COULDN'T DECIDE HOW MUCH OF THE LOCAL one penny. TAXPAYERS'MONEY TO KEEP FOR ITSELF UNTIL For nearly 50 years, the state government collected AFTER JULY 1, THE DEADLINE FOR MOST LOCAL these fees,kept enough to cover its costs,and sent the rest BUDGETS IN CALIFORNIA. back to the cities and counties. One year-1983—the Legislature failed to act until mid- Over the years, these funds have been an important September—two and a half months late! source of money to pay for police and fire services, build Finally, in 1984, the Legislature gave up the power to streets and roads, maintain parks and playgrounds, and raid local budgets to pay its own bills. Since then counties provide other local services. and cities have received the full amount of your vehicle BUT, IN 1979, THE LEGISLATURE GAVE ITSELF license fees. And they've been able to predict how much THE POWER TO DIP INTO LOCAL GOVERNMENT money would be available for local services. REVENUES TO PAY ITS OWN BILLS. But, the Legislature could—at any time—pass another IN 1981, THE LEGISLATURE KEPT 131 MILLION law giving itself the power to use local funds to balance its DOLLARS OF YOUR COUNTY AND CITY FUNDS. own budget. IN 1982,THE LEGISLATURE HELD ON TO 277 MIL- Proposition 47 requires the Legislature to send your LION DOLLARS TO BALANCE ITS OWN BUDGET. money back to your county and city. Proposition 47 will IN 1983, THE LEGISLATURE DIPPED INTO YOUR MAKE SURE YOUR MONEY GOES FOR LOCAL LOCAL GOVERNMENT'S POCKETBOOK ONCE NEEDS, like better streets and roads, paramedic and AGAIN. THIS TIME, THE STATE WALKED AWAY health services, fire services and police protection. WITH 319 MILLION DOLLARS TO PAY ITS OWN LET'S GET THE STATE LEGISLATURE'S HAND BILLS. OUT OF LOCAL GOVERNMENT'S POCKET. VOTE At the same time, cities and counties reduced para- YES ON PROPOSITION 47. medic services, trimmed their staffs, cut back library hours, raised fees for park and recreation facilities, and RUBEN AYALA delayed repairing streets, roads and public buildings—all Stale Senator,34th District in an effort to avoid reducing police, sheriff and fire pro- RICHARD P. SIMPSON tection. Executive Vice President But while your local officials were forced to cut costs, California Taxpayers'Association THE STATE LEGISLATURE TOOK A TOTAL OF 727 ROBERT E.WINTER MILLION DOLLARS FROM TRADITIONALLY" LO- Sheriff,Santa Clara County CAL FUNDS TO BALANCE THE STATE BUDGET. President, California State Sheriffs'Association No argument against Proposition 47 was filed Text of Proposed Law This amendment proposed by Senate Constitutional ant to the Vehicle License Fee Law,or its successor,other Amendment 23 (Statutes of 1984,Resolution Chapter 162) than fees on trailer coaches and mobilehomes, over and . expressly amends the Constitution by adding a section above the costs of collection and any refunds authorized thereto; therefore, new provisions proposed to be added by law, shall be allocated to counties and cities according are printed in italic type to indicate that they are new. to statute. (b) This section shall apply to those taxes imposed pur- PROPOSED AMENDMENT TO ARTICLE XI suant to that law on and after July 1 following the approval SEC 15. (a) All revenues from taxes imposed pursu- of this section by the voters. P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 21 48 Legislators and Judges Retirement Systems Official Title and Summary Prepared by the Attorney General LEGISLATORS' AND JUDGES' RETIREMENT SYSTEMS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Limits payment of retirement allowances to members of the Legislators'Retirement System or the Judges'Retirement System,or to their beneficiaries or survivors, to higher of (1) the salary received by the person currently serving in the office in which the retired person served or (2) the highest salary received by the retired person while serving in that office. Limitation on retirement allowances applies only to members entering retirement systems for first time on or after January 1, 1987. Authorizes Legislature to define terms used in the measure. Contains other provisions. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Current retirees from these programs receive retirement benefit increases based on cost of living. Under this proposal persons entering these retirement systems after January 1, 1987, will receive retirement benefits limited to salaries of like officeholders. Because salary increases are limited by law, this measure could produce minor savings to state in future years if,over a period of time, the rate of inflation exceeds the increases in salaries paid to the current officeholders. Final Vote Cast by the Legislature on SCA 5 (Proposition 48) Assembly: Ayes 71 Senate: Ayes 37 Noes 3 Noes 0 Analysis by the Legislative Analyst position last held by the retired judge.Each year,both the Background pensions paid to retired judges and the salaries paid to Legislators and certain officers who are elected on a active judges increase by the same percentage as the in- statewide basis (the Governor, for example) are covered crease in salaries granted to state employees. by the Legislators'Retirement System.Judges are covered by a separate retirement system. Proposal When a statewide elected official (such as the Gover- This constitutional amendment would set limits on nor) retires,the official's initial retirement benefit cannot retirement benefits for persons covered by the Legisla- exceed 60 percent of his or her highest salary.•For a legisla- tors' and Judges' Retirement Systems. The limits would tor, the initial retirement benefit cannot exceed two- apply to individuals (and their beneficiaries) who first thirds of his or her-final salary. The retirement benefits become members of these systems after December 31, paid to both groups of officials increase each year to offset 1986. If the amendment is approved, retirement benefits the effects of inflation. Thus,if prices go up by 10 percent could not exceed the higher of (1) the salary paid to the in any one year, the amount of each retirement check person currently holding the position from which the increases by 10 percent in the following year. member retired,or (2) the highest salary received by the In contrast, the salaries paid to legislators cannot in- individual during his or her term in office. (In most cases, crease by more than 5 percent per year. Thus, when the the salary paid to the current officeholder will be higher, rate of inflation exceeds 5 percent, the pensions paid to and thus will serve as the limit on pension benefits.) retired legislators increase faster than the salaries paid to current legislators. This narrows the gap between salaries and retirement benefit levels. Fiscal Effect The salaries of statewide elected officials generally grow This measure could produce minor savings to the state at the same rate as the salaries granted to state employees. in future years. Such savings would occur if,over a period A judge's retirement benefits are limited to 75 percent of time, the rate of inflation exceeds the increases in sala- of the salary paid to the judge currently serving in the ries paid to the current officeholders. An e0ceptional idea. 0 Bonnie Nicholls, Nevada City . 22 P86 Legislators' and Judges' Retirement Systems 48 Argument in Favor of Proposition 48 We must act now to limit the future pension benefits of sions earned while these laws were on the books must be public officials in California! paid! IF PROPOSITION 48 HAD BEEN IN THE STATE WE HAVE.THE POWER TO PREVENT PUBLIC OF- CONSTITUTION, WE WOULD NOT NOW BE FICIALS FROM RECEIVING RETIREMENT BENE- FORCED TO SPEND TAXPAYER DOLLARS TO PRO- FITS THAT ARE GREATER THAN THE SALARIES OF VIDE THESE EXTRAORDINARY PENSIONS! OUR CURRENT OFFICEHOLDERS. WE HAVE THE HOW DOES PROPOSITION 48 WORK? POWER TO GUARANTEE EQUITY IN THESE PEN- Proposition 48 would put a pension benefit UPPER limit SION BENEFITS! in the Constitution forjudges,legislators,and constitution- Retirement systems were created to provide fair allow- al officers who are first elected after January 1, 1987. ances to public servants, not windfall benefits. The scan- These public officials would be prohibited from receiv- dalously high pensions now being paid to some retired ing a pension benefit that exceeds the greater of: public officials were never intended by the Legislature. 1) the highest salary earned before retirement, or Nor were they expected by the individuals while they 2) the salary of the current officeholder. were in office. But the courts have upheld these plans— This new UPPER LIMIT on pension benefits would per- even though they provide unearned benefits to a select manently stop the predicament we find ourselves in today few. —that of retired public officials being paid allowances Proposition 48 will ensure that this situation will never greater than the salaries of our current officeholders. happen again by amending the State Constitution to pro- THIS IS YOUR CHANCE TO ENACT A CONSTITU- vide permanent limits on the future pensions of all judges, TIONAL AMENDMENT THAT WILL ASSURE THAT legislators, and constitutional officers. PUBLIC OFFICIALS CANNOT GET HIGHER PEN- WHY IS A CONSTITUTIONAL AMENDMENT SION BENEFITS THAN THEY DESERVE. NECESSARY? Vote YES on PROPOSITION 48! The State Constitution does not include ANY limits on the pension benefits of public officials. wADIE P. DEDDEH The actions of a legislative session 23 years ago now State Senator,40th District haunt us. All of these problem pension plans have now JIM ELLIS been repealed, but the courts have decreed that the pen- State Senator,39th District No argument against Proposition 48 was filed Text of Proposed Law This amendment proposed by Senate Constitutional which exceeds the higher of(1) the salary receivable by Amendment 5 (Statutes of 1985, Resolution Chapter 90) the person currently serving in the office in which the expressly amends the Constitution by adding a section retired person served or (2) the highest salary that was thereto; therefore, new provisions proposed to be added received by the retired person while serving in that office. are printed in italic type to indicate that they are new. (b) The Judges'Retirement System shall not pay any unmodified retirement allowance or its actuarial equiva- PROPOSED AMENDMENT TO ARTICLE VII lent to any person who on or after January 1, 1987,entered for the first time any judicial office subject to the Judges' First—That Section 11 is added to Article VII thereof,to Retirement System or to any beneficiary or survivor of read: such a person, which exceeds the higher of(1) the salary SEC. 11. (a) The Legislators' Retirement System receivable by the person currently serving in the judicial shall not pay any unmodified retirement allowance or its office in which the retired person served or (2) the high- actuarial equivalent to any person who on or after January est salary that was received by the retired person while 1, 1987,entered for the first time any state office for which serving in that judicial office. membership in the Legislators' Retirement System was (c) The Legislature may define the terms used in this elective or to any beneficiary or survivor of such a person, section. P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 23 4 9 Nonpartisan Offices Official Title and Summary Prepared by the Attorney General NONPARTISAN OFFICES. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Existing provisions of California Constitution provide that judicial, school, county, and city offices shall be nonpartisan, but do not prohibit a political party`or party central committee from endorsing, supporting, or opposing a candidate for nonpartisan office. This measure would add a provision that no political party or party central committee may endorse, support, or oppose a candidate for such a nonpartisan office. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: This measure has no direct state or local government fiscal impact. Final Vote Cast by the Legislature on ACA 7 (Proposition 49) Assembly: Ayes 64 Senate: Ayes 31 Noes 10 Noes 6 Analysis by the Legislative Analyst Background The California Constitution states that judicial, school, county, and city elective offices shall be nonpartisan. However, a political party or a central committee of a political party may support or oppose persons seeking such offices. Proposal This constitutional amendment provides that no politi- cal party or party central committee may endorse, sup- port,or oppose a candidate for nonpartisan elective office. Fiscal Effect This measure has no direct state or local fiscal impact. If you need an absentee ballot call your county clerk or registrar of voters 24 P86 Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 7 (Statutes of 1986, Resolution Chapter 1) expressly amends the Constitution by amending a section thereof; therefore, existing provisions proposed to be de- leted are printed in strikeout #fie and new provisions proposed to be inserted or added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE II, SECTION 6 SEC. 6. Julieiti; (a) All judicial, school, county, and city offices shall be nonpartisan. (b) No political party or party central committee may endorse, support, or oppose a candidate for nonpartisan office. Your two cents makes good sense. Keep America f ree. Vote. Judy Overholt, Fresno A matter of pride . . . your right to decide. Register. Vote. Cathy Hatfield, Fountain Valley P86 25 49 Nonpartisan Offices E3 Argument in Favor of Proposition 49 VOTE YES ON PROPOSITION 49 AND KEEP THE PARTY Californians do not want their judges to become beholden to BOSSES OUT OF ELECTIONS FOR LOCAL OFFICES AND political parties. JUDGESHIPS! UNLESS YOU VOTE YES ON PROPOSITION 49,JUDGES For more than 70 years,the people of California have voted for MAY WELL BE INDEBTED TO PARTY BOSSES TO WIN city council members, county supervisors, school board mem- ELECTIONS. THEIR JOBS WILL DEPEND ON IT! bers,and judges,largely without regard for the candidates'polit- Local officeholders support this amendment and are equally ical party memberships. concerned that partisan electioneering will harm decision-mak- The California Constitution says,'Judicial,school,county and ing at the local level. They are concerned that the more they city offices shall be nonpartisan.' have to rely on money, help, and endorsements from political Yet, a recent California State Supreme Court decision over- machines, the more they will owe the political machines. turned a long-understood ban on partisan electioneering in local Local officeholders do not want to have to check with the and judicial elections.The Court said no laws ecifically prevents party bosses before they make decisions important to their con- the party bosses from moving in on these elections. stituents! PROPOSITION 49 WILL MAKE IT CLEAR THE PARTY IF YOU WANT YOUR LOCAL OFFICIALS TO BE LOYAL BOSSES MUST STAY OUT OF ELECTIONS FOR JUDGE- TO YOU—NOT TO THE PARTY BOSSES—VOTE YES ON SHIPS, CITY COUNCILS, COUNTY BOARDS OF SUPERVI- PROPOSITION 49. SORS, SCHOOL BOARDS, AND OTHER LOCAL OFFICES. . Proposition 49 enjoys the support of the League of California' For most of this century,our state has enjoyed a well-deserved Cities,the California Judges Association,the County Supervisors reputation for good, clean, effective government at the local Association of California,more than 500 mayors and city council level. California has been largely free of the machine-style poli- members, the American Association of University Women, and tics that is typical of some Eastern states. others, including many school districts. WHEN PARTY BOSSES HAVE HAD A STRANGLEHOLD LOCAL AND JUDICIAL ELECTIONS ARE NO PLACE FOR ON LOCAL POLITICS ELSEWHERE,HOWEVER,CORRUP- PARTY POLITICS. TION IN CITY HALL AND IN THE COURTS OFTEN HAS KEEP THE PARTY BOSSES OUT OF LOCAL ELECTIONS BEEN THE RULE . . . NOT THE EXCEPTION. AND THE COURTS. To assure that our courts will not be manipulated by political VOTE FOR HONEST GOVERNMENT BY AND FOR THE bosses, your yes vote on Proposition 49 is absolutely necessary. PEOPLE. VOTE YES ON PROPOSITION 49. WHO WOULD TRUST THE FAIRNESS OF TRIALS TO JUDGES WHO WERE CHOSEN—NOT BECAUSE THEY ARE RICHARD L. MOUNTJOY IMPARTIAL BUT BECAUSE THEY OWE ALLEGIANCE TO Member of the Assembly,42nd District THE POLITICAL PARTIES.WHICH GOT THEM ELECTED? Author of Proposition WHO WANTS TO RELY ON THE DECISIONS OF JUDGES JOSEPH MONTOYA WHO ARE CHOSEN—NOT BECAUSE THEY ARE WISE OR State Senator,26th District BECAUSE THEY KNOW THE LAW—BUT BECAUSE THEY PAT RUSSELL HAVE PROMISED TO TOE THE PARTY LINE? President,League of California Cities Rebuttal to Argument in Favor of Proposition 49 The argument in favor of Proposition 49 is a further insult to volvement in judicial elections. It prohibits party recommenda- your intelligence and responsibleness. It is completely mislead- tions in all city and county elections. There should be a much ing. narrower ballot measure for judicial elections. There are no party bosses or machines in California who are This proposition would bar you from receiving significant in- going to take over local and judicial elections.Party committees formation about elections—information helpful to many voters that may make endorsements are composed of your neighbors in local elections where candidates have no party designations. and friends—business and professional people, homemakers, Party endorsements bind no one. Voters are free to give the workers, retired persons—ordinary citizens who actively share party recommendations whatever weight they choose. your concern for good government.In fact,committee members Don't accept gross falsehoods designed to frighten you into are elected by you at primary elections.They are people whom voting for this proposition.Don't deny youself relevant informa- you have chosen. Proposition 49 is flagrantly discriminatory. It tion about candidates.Don't deny your fellow citizens their con- permits all kinds of organizations, special interest groups, big stitutional rights to express their views. contributors, newspapers, indeed anyone, to make endorse- Vote no on Proposition 49. ments, except party committees. But they are the only ones accountable to you at the polls! ROBERT GIRARD Proposition 49 is far too broad just to deal with partisan in- Director, Common Cause 26 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Nonpartisan Offices 49 Argument Against Proposition 49 Proposition 49 is clearly unconstitutional. It is a frontal attack again they have,proven their ability to pick their candidates on on the most important kind of free speech: the right of political the basis of ability or philosophy.Why deny them the knowledge expression. of a party's opinion,which is merely an indication of philosophy? It is also a gross insult to you as a California voter. It implies Ask yourself this question: If parties are denied the opportu- that you cannot be trusted to make informed electoral choices nity to speak out on the qualifications of candidates for office, if you are exposed to political endorsements. For the purpose of who takes their place?You and I both know the answer: groups Proposition 49 is simple. It prohibits political parties from mak- called"Citizens for Clean Government"or the"Law and Order ing public observations on the qualification of candidates for Committee." Who knows what those endorsements mean? public office. We must support the right of each and every individual or Proponents will argue that this is necessary to protect judicial organization to speak out publicly and candidly in the political integrity and impartiality by ensuring that local elections remain process.This is the essence of free speech and it must be jealously nonpartisan. guarded. No one wants to return to the bad old days of partisan wheel- In the words of Thomas Jefferson: ing-dealing over judgeships.But in order to protect nonpartisan- "I know no safe depository of the ultimate powers of the soci- ship we needn't violate our First Amendment. ety but the people themselves;.and if we think them not enlight- The chief purpose of the First Amendment is to protect our ened enough to exercise their control with a wholesome discre- right to discuss our government. That includes candid, public tion,the remedy is not to take it from them,but to inform their evaluations of the people running for public office. In this soci- discretion." ety, we need to share our observations and comments in order We have faith in our citizens' ability to make intelligent to make informed choices,for those whom we elect are entrust- choices.We hope you share this faith and vote no on Proposition ed with our future. Why deny the political parties of this state, 49. which are only the collective expression of our personal political BILL LOCKYER preferences, the right to join in the dialogue? State Senator, 10th District Party endorsements are only informational, not binding. The JOHAN KLEHS people of this state are not slaves to party affiliation. Time and Member of the Assembly, 14th District Rebuttal to Argument Against Proposition 49 Our state has been blessed by the fact that local elected bodies Proposition 49 is in no way a First Amendment issue and will and our judiciary are practically free from any sort of political not limit free speech. corruption. Proposition 49 will retain the proven process we have enjoyed In so many Eastern and Midwestern cities, partisanism and in California for nearly 75 years. bossism have led to institutionalized corruption. What begins as Will Rogers once said,"If it ain't broke,don't fix it."Our State political patronage ultimately ends as political corruption. Constitution has worked well through the years. A YES vote on The provision of our Constitution that has separated partisan Proposition 49 retains our Constitution the way our forefathers Fpolitics from local government elections has been our finest de- intended it. fense of honesty. We can keep honesty in government.VOTE YES ON PROPO- To even think that continuing this constitutional principle de- SITION 49. prives anyone of First Amendment rights is preposterous. Simply stated, this is what Proposition 49 will and will not do: 70E A. DUARDO President, California School Boards Association Proposition 49 will meet any constitutional test. LESLIE K. BROWN Proposition 49 will reaffirm our State Constitution. President, County Supervisors Association of California Vote. California needs your 0-pertise. Lorraine Holt, Imperial P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 27 5 0 . Property Taxation. Disasters Official Title and Summary Prepared by the Attorney General- PROPERTY TAXATION. DISASTERS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently, with excep- tions, real property ad valorem taxes are limited to 1% of the full cash value base of the property (value in 1975-76 or, thereafter, when property is acquired from another party or new construction occurs; increased up to 2% annually for inflation). For property reconstructed after disaster, base-year value is not increased to reflect new construction if fair market value is comparable to that before disaster. This amendment similarly provides that base-year value may be transferred to comparable property acquired in same county to replace property substantially damaged or destroyed by disaster. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Beginning in 1985-86,local property tax revenues would decrease by an unknown amount. County assessors and tax collectors would have higher administrative costs which would vary from county to county, but should not be significant. State would replace revenues lost by school districts and community college districts. State income tax revenues could increase because owners of replacement property could deduct smaller amounts of property taxes on income tax returns. These effects on state costs and revenues cannot be estimated. Final Vote Cast by the Legislature on SCA 28 (Proposition 50) Assembly: Ayes 72 Senate: Ayes 28 ,Noes 0 Noes 0 Analysis by the Legislative Analyst Background . The disaster must have reduced the market value of Under the California Constitution, real property (such the property by more than one-half. as land and buildings) is taxed on the basis of its"full cash • The replacement property must be comparable to, value." The full cash value of a property is based on the and in the same county as, the property damaged by property's market value in the year it was acquired from the disaster. another party,or when it was newly constructed. The full cash value may increase by up to 2 percent each year Fiscal Effect thereafter to reflect inflation. This measure would reduce the value of some property The Constitution provides that the full cash value of a for tax purposes, beginning in 1985-86. As a result, local building rebuilt after a disaster shall not be increased to property tax revenues would decrease by an unknown reflect the new construction. This provision applies only amount. Counties, cities and special districts would bear when the market value of the rebuilt structure is compara- these revenue losses. ble to the property's market value prior to the disaster. In addition, county assessors and tax collectors would have higher administrative costs because the full cash val- Proposal ue of replacement properties would have to be changed. This constitutional amendment requires the Legislature These costs, which would vary from county to county, to provide that a replacement for disaster-damaged prop- should not be significant. erty will have the same value for tax purposes that the This measure also would affect state costs and revenues. original property had before the disaster. This proposal First, the state would replace any revenues lost by school would apply to comparable replacement property ac- districts and community college districts. Second, state quired on or after July 1, 1985, under the following condi- income tax revenues could increase because the owners of tions: replacement property could deduct smaller amounts of . The Governor must have declared that a disaster oc- property taxes on their income tax returns. These effects curred. on costs and revenues cannot be estimated. 28 P86 Text of Proposed Law This amendment proposed by Senate Constitutional Amendment 28 (Statutes of.1986, Resolution Chapter 2) expressly amends the Constitution by adding two subdivi- sions thereto; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE XIII A, SECTION 2 First—That subdivision (e) is added to Section 2 of Arti- cle XIII A thereof, to read: (e) Notwithstanding any other provision of this section, the Legislature shall provide that the base-year value of property which is substantially damaged or destroyed by a disaster, as declared by the Governor, may be trans- ferred to comparable property, within the same county, that is,acquired or newly constructed as a replacement for the substantially damaged or destroyed property. This subdivision shall apply to any comparable replace- ment property acquired or newly constructed on or after July 1, 1985, and to the determination of base-year values for the 1985-86 fiscal year and fiscal years thereafter. Second—That subdivision (f) is added to Section 2 of Article XIII A thereof, to read: (f) For the purposes of subdivision (e): (1) Property is substantially damaged or destroyed if it sustains physical damage amounting to more than 50 per- cent of its value immediately before the disaster.Damage includes a diminution in the value of property as a result of restricted access caused by the disaster. (2) Replacement property is comparable to the proper- ty substantially damaged or destroyed ifit is similar in size, utility,and function to the property which it replaces,and if the fair market value of the acquired property is compa- rable to the fair market value of the replaced property prior to the disaster. State wide, state pride. Vote in California. Kim Bowles, Danville n P86 29 5 Property Taxation. Disasters Argument in Favor of Proposition 50 When disaster strikes,such as a flood,earthquake,land- who have suffered this kind of property loss to transfer slide or fire, the California Constitution allows citizens to their tax base. They want to collect more in taxes. rebuild the destroyed structure on the same site and to Vote yes on Proposition 50.Don't let government profit retain their existing tax base. That is a good feature of our at the expense of those who are trying to get resettled Constitution. following a disaster. Unfortunately,there are times when it may not be wise to rebuild on the same site.. For persons to remain and JIM ELLIS (R) rebuild at the location of a previous earthquake or slide State Senator,39th District may be inviting tragedy to strike again. San Diego County Under Proposition 50, those persons who have suffered BECKY MORGAN (R) a property loss due to a disaster,as declared by the Gover- State Senator, 11th District nor,will have the option of either remaining and rebuild- San Mateo and Santa.Clara Counties ing on the same site or relocating to a site to purchase or DIANE WATSON (D) rebuild a structure and maintain their original tax base. State Senator,28th District Some local governments do not want to allow persons Los Angeles County Rebuttal to Argument in Favor of Proposition 50 Proponents of Proposition 50 are correct when they Such a comprehensive amendment would cost govern- state that the California Constitution already allows prop- ment the higher tax revenue (or "profit" as the propo- erty owners to rebuild following a disaster without facing nents called it) generated by reassessments,and this may reassessment and higher property taxes. That provision partly explain why our elected officials have not offered was added by voters in 1982. voters that alternative. Proposition 50 would add another exemption to auto- Another reason voters have not been offered the choice matic reassessment each time property is "purchased, of eliminating automatic reassessment may be that the newly constructed,or a change in ownership has occurred current arrangement is beneficial to owners of industrial, after the 1975 assessrnen t."Following a disaster,the prop- agricultural and commercial property (including giant erty owner could choose to buy or build elsewhere. corporations), and these owners provide the bulk of the The trouble with Proposition 50 is that it does not go far campaign contributions. enough. There would be no need for a special exemption Evidently, our elected officials will not give voters the from reassessment for disaster victims if our legislators and choice of eliminating all unfair reassessments until we in- the Governor would offer voters a comprehensive amend- sist (by voting "no" on special exemptions) and change ment to Article XIII A of the California Constitution that the way political campaigns are financed. would eliminate the automatic reassessment each time GARY B. WESLEY property changes hands. Attorney at Law �X-press yourself. Vote. Lorraine Holt, Imperial 30 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Property Taxation. Disasters 50 Argument Against Proposition 50 This measure is a proposal by the Legislature to amend tax burden from owners of commercial and industrial Proposition 13, a constitutional limitation on property property (which is often leased but seldom sold) to own- taxes approved by voters in 1978. ers (and renters) of residential property. Proposition 50 is similar to a constitutional amendment Instead of offering voters an amendment to Proposition proposed by the Legislature but rejected by voters in 1980 13 which would correct these inequities, the Legislature except that Proposition 50 more narrowly defines the cir- proposes in this measure to retain the basic flaw but ex- cumstances under which the owner of residential, com- empt a relatively small number of persons from the unfair mercial or industrial property may rebuild or relocate fol- tax burden the automatic reassessment provision places lowing a"disaster" without paying higher property taxes. upon new owners and renters of residential property. Under Proposition 13 (now Article XIII A of the Califor- A"no"vote on Proposition 50 will send a message to the nia Constitution), assessed property values generally are Legislature that voters want to be offered a comprehen- frozen at their 1975 levels;however,property is reassessed sive amendment to Proposition 13 which would eliminate and higher property taxes are imposed each time the the unfairness to all new owners and renters created by property is 'purchased,newly constructed, or a change in the automatic reassessment provision. ownership has occurred after the 1975 assessment." If assessed values are to be frozen at their 1975 levels for As a result of this reassessment each time property some owners of residential, commercial and industrial changes hands, new owners are required to pay far more property, assessed values should be frozen at those levels in property taxes than do their neighbors whose property for all owners. has the same value but was purchased earlier when prop- For this reason, I respectfully recommend a "no" vote erty values were lower. on this measure. In addition, this automatic reassessment provision has GARY B.WESLEY caused a gradual but massive shift of the overall property Attorney at Law Rebuttal to Argument Against Proposition 50 The main thrust of Proposition 13 was to protect owners Proposition 50,and those who have suffered will be treat- of property from being forced out of their homes by ever- ed fairly. increasing taxes.The taxes paid in 1976 established the tax Vote yes on Proposition 50. base for those existing property owners. The taxes after JIM ELLIS (R) 1978 for new property owners were based on the price State Senator,39th District paid for the property. San Diego County The opposition wants those who have been wiped out BECKY MORGAN (R) by a disaster to pay taxes as if they had sold that destroyed State Senator, llth District property and bought another.This is a typical example of San Mateo and Santa Clara Counties kicking people when they are down. That is not right. DIANE WATSON (D) They should be able to transfer that tax base. State Senator,28th District Nothing will be lost to others following the passage of Los Angeles County California.—we're "polling" for ya! Karen Darling, Kelseyville P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 31 13 Multiple Defendants Tort Damage Liability: Initiative Statute Official Title and Summary Prepared by the Attorney General MULTIPLE DEFENDANTS TORT DAMAGE LIABILITY:INITIATIVE STATUTE. Under existing law,tort damages awarded a plaintiff in court against multiple defendants may all-be collected from one defendant. A defendant paying all the damages may seek equitable reimbursement from other defendants. Under this amendment, this rule continues to apply to"economic damages,"defined as objectively verifiable monetary losses,including medical expenses,earnings loss, and others specified;however,for"non-economic damages,"defined as subjective,non-monetary losses,including pain,suffering,and others specified,each defendant's responsibility to pay plaintiff's damages would be limited in direct proportion to that defendant's percentage of fault. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Under current law,governments often pay non-economic damages that exceed their shares of fault. Approval of this measure would result in substantial savings to state and local governments. Savings could amount to several millions of dollars in any one year, although they would vary significantly from year to year. Analysis by the Legislative Analyst Background ages such as lost wages and medical costs. Non-economic When someone is injured or killed, or suffers property losses are damages such as pain and suffering or injury to damage, the injured party (or his or her survivors) may one's reputation. try,to make the person (or business or government).who proposal is responsible for the loss pay damages. When a lawsuit is filed,the courts decide what the damages are,who caused This measure changes the rules governing who must them,and how much the responsible party should pay. If pay for non-economic damages. It limits the liability of the court finds that the injured party was partly responsi- each responsible party in a lawsuit to that portion of non- ble for the injury, the responsibility of the other party is economic.damages that is equal to the responsible party's reduced accordingly. share of fault. The courts still could require one person to In some cases, the court decides that more than one pay the full cost of economic damages,if the other respon- other party is responsible for the 16s§. In such cases,all of sible parties are not able to pay their shares. the other parties causing the loss are responsible for pay- ing the damages, and the injured party can collect the Fiscal Effect damages from any of them.If the other responsible parties Under current law,governments often have to pay non- are not able to pay their shares, a party whose relative economic damages that exceed their shares of fault.Thus, fault is,for example,25 percent may have to pay 100 per- approval of this measure would result in substantial sav- cent of the damages awarded by the court. ings to the state and local governments.The savings could These damages could be for two types of losses: "eco- amount to several millions of dollars in any one year, al- nomic" and "non-economic." Economic losses are darn-. though they would vary significantly from year to year. Voter Xurnout. Just one of the changes California is making! Karen Alarcon, San Martin 32 Pgg Text of Proposed Law This initiative measure is submitted to the people in SECTION 4. Section 1431.2 is added to the Civil Code accordance with the provisions of Article 11, Section 8 of to read: the Constitution. §1431.2 Several Liability for Non-economic Damages This initiative measure amends and adds sections to the (a) In any action for personal injury,property damage, Civil Code; therefore,existing sections proposed to be de- or wrongful death, based upon principles of comparative leted are printed in strikeetA type and new provisions fault, the liability of each defendant for non-economic proposed to be added are printed in italic type to indicate damages shall be several only and shall not be joint. Each that they are new. defendant shall be liable only for the amount of non-eco- PROPOSED LAW nomic damages allocated to that defendant in direct pro- SECTION 1. This shall be known as the"Fair Respon- Portion to that defendant'spercentage offault,and a sepa- sibility Act of 1986." rate judgment shall be rendered against that defendant SECTION 2. Section 1431 of the Civil Code is for that amount. amended to read: (b)(1) For purposes of this section, the term "econom- V131r, §1431 Toint Liability is damages"means objectively verifiable monetary losses An obligation imposed upon several persons, or a right including medical expenses, loss of earnings, burial costs, created in favor of several persons,is presumed to be joint, loss of use ofproperty,costs ofrepair or replacement,costs and not several,except as provided in Section 1431.2, and of obtaining substitute domestic services, loss of employ- except in the special cases mentioned in the T44e title on ment and loss of business or employment opportunities. the interpretation of Gentr-aets contracts. (2) For the purposes of this section, the term "non- This presumption,in the case of a right,can be overcome economic damages" means subjective, non-monetary only by express words to the contrary. losses including, but not limited to,pain, suffering,incon- SECTION 3. Section 1431.1 is added to the Civil Code venience,mental suffering, emotional distress,loss ofsoci- to read: ety and companionship,loss of consortium,injury to repu- §1431.1 Findings and Declaration of Purpose tation and humiliation. The People of the State of California find and declare as SECTION 5. Section 1431.3 is added to the Civil Code follows: to-read: a) The legal doctrine of joint and several liability, also §1431.3 Nothing contained in this measure is intended, known as "the deep pocket rule",has resulted in a system in any way, to alter the law of immunity. of inequity and injustice that has threatened financial SECTION 6. Section 1431.4 is added to the Civil Code bankruptcy of local governments, other public agencies, to read: private individuals and businesses and has resulted in §1431.4 Amendment or Repeal of Measure. higher prices for goods and services to the public and in This measure may be amended or repealed by either of higher taxes to the taxpayers. the procedures set forth in this section. If any portion of b) Some governmental and private defendants are per- subsection (a) is declared invalid, then subsection (b) ceived to have substantial financial resources or insurance shall be the exclusive means of amending or repealing this coverage and have thus been included in lawsuits even measure. though there was little or no basis for finding them at fault. (a) This measure may be amended to further its pur- Under joint and several liability,if they are found to share poses by statute, passed in each house by rollcall vote even a fraction of the fault, they often are held financially entered in the journal, two-thirds of the membership con- liable for all the damage. The People—taxpayers and con- curring and signed by the Governor, if at least 20 days sumers alike—ultimatelypayfor these lawsuits in theform prior to passage in each house the bill in its final form has of higher taxes,higher prices and higher insurance premi- been delivered to the Secretary of State for distribution to ums. the news media. c) Local governments have been forced to curtail some (b) This measure may be amended or repealed by a essential police, fire and other protections because of the statute that becomes effective only when approved by the soaring costs of lawsuits and insurance premiums. electors. Therefore, the People of the State of California declare SECTION 7. Section 1431.5 is added to the Civil Code that to remedy these inequities,defendants in tort actions to read: shall be held financially liable in closer proportion to their §1431.5 Severability. degree of fault. To treat them differently is unfair and If any provision of this measure, or the application of inequitable. any such provision to any person or circumstances,shall be The People of the State of California further declare held invalid, the remainder of this measure to the extent that reforms in the liability laws in tort actions are neces- it can be given effect, or the application of such provision sary and proper to avoid catastrophic economic cone- to persons or circumstances other than those as to which quences for state and local governmental bodies as well as it is held invalid,shall not be affected thereby, and to this private individuals and businesses. end the provisions of this measure are severable. P86 33 51 Multiple Defendants Tort Damage Liability: Initiative Statute Argument in Favor of Proposition 51 Nothing is more unfair than forcing someone—be it a city,a county or With the passage of Proposition 51: the state,a school,a business firm or a person—to pay for damages that . Liability insurance,now virtually impossible to obtain,would again are someone else's fault. be available to cities and counties. That's what California's"deep pocket"law is doing—at a cost of tens . Private sector liability insurance premiums could drop 10%to 15%. of millions of dollars annually.And that's why we need Proposition 51— . The gglut of lawsuits with dubious merit would be significantly re- the Fair Responsibility Act. duced. Regardless of whether it is a city,county or private enterprise that is Every California county—and virtually all its cities—are IN FAVOR hit with huge "deep pocket"court awards or out-of-court settlements, OF PROPOSITION 51. the TAXPAYER AND CONSUMER ULTIMATELY PAY THE COSTS One of the largest coalitions of school, governmental, law enforce- through high taxes,increased costs of goods and services,and reduced ment,small and large business,professional,labor and non-profit organi- governmental services. zations in history urges you to VOTE YES ON PROPOSITION 51. How does the"deep pocket"law work?Here's an illustration: This initiative proposition was put on the ballot by hundreds of thou- A drunk driver speeds through a red light,hits another car,injures a sands of voters because repeated attempts in the Legislature to reform passenger. The drunk driver has no assets or insurance. the unfair"deep pocket"law were thwarted by the intense lobbying of The injured passenger's trial lawyer sues the driver AND THE CITY the California Trial Lawyers Association. because the city has a very "deep pocket"—the city treasury or insur- The trial lawyers'organization last year was the LARGEST GIVER of ante. He claims the stop light was faulty. SPECIAL INTEREST CAMPAIGNMONEYto state legislators and is the The jury finds the drunk driver 95%at fault,the city only 5%.It awards major organized opposition to the Fair Responsibility Act. the injured passenger$500,000 in economic damages (medical costs,lost Under the present"deep pocket"law: earnings, property damage) and $1,000,000 in non-economic damages . The party most at fault often doesn't pay—THAT'S NOT FAIR! (emotional distress,pain and suffering,etc.). . You—the taxpayer and consumer—ultimately pay the "deep Because the driver can't pay anything, THE CITY PAYS IT-ALL— pocket"awards and settlements—THAT'S NOT FAIR! $1,500,000. Under Proposition 51: THAT'S THE`DEEP POCKET"LAW AND ITS UNFAIR! • Victims and taxpayers alike are protected—THA IS FAIR! Under Proposition 51,the city could still pay all the victim's economic Don't let 5,400 trial lawyers hold 26 million Californians hostage. damages but only its 5%portion of the non-economic.Total:$550,000— VOTE YES ON PROPOSITION 51! that's$950,000 less! RICHARD SIMPSON Everyone agrees the injured passenger should be reimbursed. But California Taxpayers'Association there are TWO VICTIMS—the ACCIDENT VICTIM and the TAXPAY DONNETTA SPINK ER who foots the bill. President, California State Parent-Teacher Association Proposition 51 is a GOOD COMPROMISE—it takes care of both vic- ELWIN E. (TED) COOKE tims! President, California Police Chiefs Association Rebuttal to Argument in Favor of Proposition 51 Proposition 51 will NOT lower taxes,will NOT lower insurance rates compensated by those who caused their injuries—they will be forced to and will NOT make insurance more available. go on welfare.. Proposition 51 is a fraud promoted by the insurance industry,chemical The insurance crisis is caused by a greedy insurance industry that is manufacturers,and local government officials. , exempted from federal antitrust laws.There is no rate competition and Insurance companies back Proposition 51 because they want to in- thus no need to pass savings on to us. crease their profits—they don't want to pay the claims they owe. Ralph Nader says, Toxic chemical producers back Proposition 51 because they want to "The insurance industry is using its current massive premium increase their profits—they don't want to be held responsible for the gouging and arbitrary cancellations as a political battering ram to cancer their toxic waste dumps cause. further bloat profits." Local government officials back Proposition 51 because they don't When was the last time your insurance company lowered your rates? want to do the job we taxpayers elected them to do—protecting the NO on Proposition 51—Protect your rights. people by maintaining efficient police and fire services and safe roads. PAT CODY Proposition 51 will NOT reduce taxes.This insurance company wind- DES Action fall won't go to you. JAMES E. VERMEULEN If Proposition 51 passes, our welfare rolls will increase. People who Founder and Executive Director must spend their life in a wheelchair or on a respirator will NOT be Asbestos Victims of America 34 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 Multiple Defendants Tort Damage Liability: Initiative Statute Argument Against Proposition 51 If you or a member of your family is paralyzed for life by a drunk driver even in cases where they have no claims and no losses. They point to California law now protects your right to full and fair compensation for large jury awards as the root of the problem.You should know that juries your injuries.This initiative removes that protection. give nothing—not one dollar—in 50% of the medical malpractice and Proposition 51 is an attempt by big insurance companies to avoid product liability cases they hear. paying victims for the injuries they suffer.Passage of this initiative does But the insurance companies never tell you that either. nothing to guarantee that your insurance rates will be lower or that Insurance companies refuse to promise that insurance rates will be insurance will be more available than it is today. lower or policies more available if this initiative passes. In fact, Kansas Our present system of justice has developed over hundreds of years to and Ohio have measures similar to this proposition, yet they are also achieve the twin goals of (one) full compensation if you are injured faced with insurance "crises." Proposition 51 solves nothing. The only because of someone else's fault and(two)encouraging safe and responsi- guarantee it offers is that you lose your legal rights to full and fair com- ble practices and products.Every day,juries made up of taxpayers and pensation. consumers just like you carry out these goals.They decide who is at fault The battle over Proposition 51 is more than•a mud fight between and put the responsibility where it belongs:not on innocent victims,but insurance companies and lawyers.Every Californian has a stake in assur- on drunk drivers, manufacturers of dangerous products or toxic waste ing that businesses and local governments behave in a safe,responsible and unsafe roads and highways.Where juries have been clearly wrong, manner, and that innocent people who are injured by dangerous appellate courts have overturned the jury awards. products or unsafe conditions are fully and fairly compensated. These But insurance companies never tell you that. values should not be sacrificed in favor of insurance industry profits. The current system works and it's fair:Those who caused the injuries Don't be fooled by slick ads.Don't be tricked by big corporations into pay the victims. Though juries assign a percentage of fault to those voting away your legal rights.If you want to assure your access to justice responsible,it is the involvement of everyone found guilty that caused and your ability to be compensated when injured by reckless and uneth- the accident to occur.It is not fair to make innocent victims—who are ical behavior,join us in voting NO on Proposition 51 on June 3rd: not at fault—bear the cost,while the guilty walk away. DON'T GIVE AWAY YOUR RIGHTS. VOTE NO! The insurance companies want the present system scrapped. Insur- HARRY M. SNYDER ance companies have manufactured a crisis by refusing to issue policies, Regional Director, California Consumers Union of U.S.,Inc. Rebuttal to Argument Against Proposition 51 California TAXPAYERS ARE THE VICTIMS of the unfair "deep California Farm Bureau Federation pocket"law—TRIAL LAWYERS ARE THE REAL BENEFICIARIES. National Federation of Independent Business PROPOSITION 51 PROTECTS BOTH INJURED VICTIMS AND California Dental Association TAXPAYERS. California District Attorneys Association . Injured victims will be FULLY COMPENSATED for ALL actual California Women for Agriculture damages—present and future—medical bills,lost earnings and property Zoological Society/San Diego damage. VICTIMS' FAMILIES WILL NOT SUFFER FINANCIAL California Association of Recreation and Park Districts LOSS. Sierra Ski Areas Association Under Proposition 51: California Defense Counsel . Liability insurance,now virtually impossible to obtain,could again Association for California Tort Reform be made available to cities and counties. California Hospital Association . Private sector commercial liability,insurance premiums could drop Associated General Contractors 10-15%, according to D. Michael Enfield, managing director of the California Restaurant Association world's largest insurance brokerage. California Institute of Architects IT'S A FAIR COMPROMISE.That's why one of the largest coalitions Association of Cdlifornia School Administrators ever is supporting Proposition 51,including: Western United States Lifesaving Association County Supervisors Association of California California Association of 4WD Clubs League of California Cities All 58 COUNTIES,virtually EVERY CITY,and MANY MORE ORGA- California Taxpayers' Association NIZATIONS California State PTA (Legal limits prohibit a complete list.) California Chamber of Commerce California Police Chiefs Association KIRK WEST California Community College Trustees President, California Chamber of Commerce California Peace Officers Association PAT RUSSELL California School Boards Association President,League of California Cities California State Sheriffs'Association President,Los Angeles City Council Consumer Alert LESLIE BROWN California Medical Association President, County Supervisors Association Service Employees International Union,Joint Council #2 of California California Manufacturers Association Supervisor,Kings County P86 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 35 5 2 County Correctional Facility Capital Expenditure Bond Act of 1986 Official Title and Summary Prepared by the Attorney General COUNTY CORRECTIONAL FACILITY CAPITAL EXPENDITURE BOND ACT OF 1986. This act provides for the construction, reconstruction, remodeling, and replacement of county correctional facilities and the performance of deferred maintenance thereon pursuant to a bond issue of four hundred ninety-five million dollars ($495,000,000). Final Vote Cast by the Legislature on SB 146 (Proposition 52) Assembly: Ayes 68 Senate: Ayes 36 Noes 2 Noes 2 Analysis by the Legislative Analyst Background maintenance. The measure limits the amount of money California's 58 counties have detention facilities that that could be used for county juvenile facility projects to they use to house adults and juveniles who are serving $20 million. time for committing a crime or awaiting court decisions. In order for a county to receive bond funds, it would More than 35 counties currently have more persons in have to: their jails and juvenile facilities than the facilities were 1. Provide matching funds of 25 percent of the project's designed to house.The capacity of facilities maintained by costs (this requirement could be modified or waived by several other counties probably is exceeded during peak the Legislature), times such as Friday and Saturday nights. In 13 counties, 2. Adopt a plan to prohibit the detention of juveniles in the courts have set limits on the number of persons that jails unless the county is permitted by law to keep them may be confined in jails at any one time. there, Because of the crowded conditions in detention facili- 3. Show that it has adequate facilities for mentally ill' ties, counties are attempting to hold down or reduce the inmates and persons arrested because of inebriation, or number of persons housed in these facilities. that it has a plan to provide services to these persons,and The voters have authorized the state to sell$530 million 4. Show that it has made the greatest practicable use of in general obligation bonds to raise money for county jail alternatives to keeping persons in jail, such as work re- improvements. (General obligation bonds are backed ful- lease, own recognizance release, or weekend work pro- ly by the state, meaning that the state will use its taxing grams. power to assure that enough money is available to pay off The amount of money a county would be eligible to the bonds.) The Board of Corrections estimates that these receive would be determined by the Legislature at a fu- funds will be fully committed by 1988.The board estimates ture time. that by 1989,counties will have spent a total of about$850 Fiscal Effect million (including the money provided by the state bond measures) to provide new space for 11,000 more persons Paying Off the Bonds. The state would make principal in jails. and interest payments over a period of up to 20 years from The Board of Corrections estimates that after the new the state's General Fund.The average payment would be space is provided,counties will need to spend an addition- about$44.2 million each year,if the bonds were sold at an al $1 billion in order to house about 13,800 more persons interest rate of 7.5 percent. in jails by 1991. Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause Proposal the state and local governments to pay more under other This measure would authorize the state to sell$495 mil- bond programs. These costs cannot be estimated. lion in general obligation bonds to raise money for county Lower State Revenues. The people who buy these detention facilities. This money could be used to pay for bonds are not required to pay state income tax on the the construction, reconstruction, remodeling, and re- interest they earn. Therefore, if California taxpayers buy placement of county jail and juvenile facilities (including these bonds instead of making other taxable investments, separate facilities for the care of mentally ill inmates and the state would collect less taxes.This loss of revenue can- persons arrested because of intoxication),and for deferred not be estimated. 36 P86 Text of Proposed Law This law proposed by Senate Bill 146 (Statutes of 1986, (c) "County juvenile facilities"means county juvenile Ch. 12) is submitted to the people in accordance with the halls,juvenile homes, ranches, or camps, and other juve- provisions of Article XVI of the Constitution. nile detention facilities. This proposed law expressly adds sections to the Penal 4482. There is in the State Treasury the 1986 County Code;therefore,new provisions proposed to be added are Correctional Facility Capital Expenditure Fund, which printed-in italic type to indicate that they are new. fund is hereby created. PROPOSED LAW 4483. For the purpose of authorizing the issuance and sale,pursuant to the State General Obligation Bond Law, SECTION 1. Title 4.7 (commencing with Section of the bonds authorized by this title, the 1986 County Cor- 4475) is added to Part 3 of the Penal Code, to read: rectional Facility Capital Expenditure Finance Commit- TITLE 4.7. COUNTY CORRECTIONAL FACILITY tee is hereby created. The committee consists of the Gov- CAPITAL EXPENDITURE BOND ACT OF 1986 ernor or his or her designated representative, the Controller, the Treasurer, and the Director of Finance. CHAPTER 1. FINDINGS AND DECLARATIONS The County Correctional Facility Capital Expenditure 4475. This title shall be known and maybe cited as the Committee shall be the "committee"as that term is used .County Correctional Facility Capital Expenditure Bond in the State General Obligation Bond Law,and the Treas- Act of 1986. urer shall serve as chairman of the Committee. The Board, 4476. It is found and declared that. of Corrections is hereby designated as "the board" for (a) While the County Jail Capital Expenditure Bond purposes of this title and for the purposes of the State Act of1981 and the County Jail Capital Expenditure Bond General Obligation Bond Law. Act of 1984 have helped eliminate many of the critically 4484. The committee is hereby authorized and em- overcrowded conditions found in the 164 county jail facili- powered to create a debt or debts,liability or liabilities, of ties in the state, many problems remain. the State of California, in the aggregate amount of four (b) Numerous county jails and juvenile facilities hundred ninety-five million dollars ($495,000,000), in the throughout California are dilapidated and overcrowded manner provided in this title. That debt or debts,liability (c) Capital improvements are necessary to protect life or liabilities,shall be created for the purpose of providing and safety of the persons confined or employed in jail the funds to be used for the object and work specified in facilities and to upgrade the health and sanitary conditions Section 4485 and for administrative costs incurred in con- of those facilities. nection therewith. (d) County jails are threatened with closure or the im- 4485. Moneys in the fund maybe available for the con- position of court supervision if health and safety deficien- struction,reconstruction,remodeling,and replacement of cies are not corrected immediately. countyjail facilities,including, but not limited to,separate (e) Due to fiscal constraints associated with the loss of facilities for care of mentally ill inmates and persons ar- local property tax revenues,counties are unable to finance rested because of intoxication, and the performance of the construction of adequate jail and juvenile facilities. deferred maintenance on county jail facilities except that (f) Local facilities for adults and juveniles are operating up to twenty million dollars ($20,000,000) of the money in over capacity and the population of these facilities is still the fund shall be available for the construction, recon- increasing.Itis essential to thepublic safety that construc- struction,remodeling,andreplacement ofcountyjuvenile tion of new facilities proceed as expeditiously as possible facilities, and the performance of deferred maintenance to relieve overcrowding and to maintain public safety and on county juvenile facilities. However, deferred mainte- security. nance for jails and juvenile facilities shall only include CHAPTER 2. FISCAL PROVISIONS items with a useful life of at least 10 years. 4480. The State General Obligation Bond Law is Expenditure shall be made only if county matching adopted for the purpose of the issuance, sale, and repay- funds of 25 percent are provided as determined by the ment of, and otherwise providing with respect to, the Legislature, except that this requirement may be modi- bonds authorized to be issued pursuant to this title, and fied or waived by the Legislature where it determines that the provisions of that law are included in this title as it is necessary to facilitate the expeditious and equitable though set out in full in this chapter except that,notwith- construction of state and local correctional facilities. standing anything in the State General Obligation Bond 4485.5. During the design and planning stage for coun- Law, the maximum maturity of the bonds shall not exceed ty jail facilities whose construction, reconstruction, or re- 20 years from the date of each respective series. The matu- modeling is financed by the fund, consideration shall be rity of each respective series shall be calculated from the given to proper design to allow for areas where persons date of these series. arrested for misdemeanors who are attempting to obtain 4481. As used in this title, and for the purpose of this release on bail can be safely accommodated without the title, the following words shall have the following mean- necessity of unclothed body searches. ings. 4485.6. In order to be eligible to receive funds derived (a) "Committee"means the 1986 County Correctional - from the issuance of General Obligation Bonds under this Facility Capital Expenditure Finance Committee created title, a county shall do all of the following: by Section 4483. (a) Adopt a plan-to prohibit the detention of all juve- (b) "Fund"means the 1986 County Correctional Facil- niles in county jails unless otherwise authorized by law. ity Expenditure Fund. Continued on page 46 P86 37 County Correctional Facility Capital Expenditure 52 Bond Act of 1986 Argument in Favor of Proposition 52 Most Californians believe that those who commit seri- capes increase as jail conditions worsen. An overcrowded ous crimes should go to jail. The Legislature and the trial jail generally does not have space to permit the separation courts have responded by making it tougher on criminals. of people awaiting trial on minor charges from dangerous Mandatory jail time is now required for many serious criminals. crimes.Jail sentences have been lengthened for many oth- Californians have approved bond measures before to ers.However,California's criminal justice system is only as assist with the construction of new jails. But California strong as its weakest link, and the county jails are the continues to grow and the need for new jail facilities con- weakest link. Unless new jails are built,our system will no tinues to increase. A county will not get money from this longer be able to house the criminals that our courts con- measure just by asking for it.It will first have to prove that vict. its jail facility is being operated efficiently and it will have The jails in 46 counties are seriously overcrowded.Some to demonstrate a sufficient need to qualify for bond funds.' of them are currently housing over twice the number of Further,a county receiving money from this measure will prisoners they were designed to accommodate. Twenty- have to put up 25% of the cost of the new facilities. five counties are being sued because their jails are so over- Passage of this measure is desperately needed if we are crowded.Thirteen jails are operating under court-ordered to continue to house criminals in county jails and separate population limits which have forced the release of some them from law-abiding citizens. inmates into-the community. We urge you to vote "yes" on Proposition 52. The typical county jail is over 30 years old. A third are over 40 years old. Most jails were built to hold less danger- PAT NOLAN Assembly Republican Leader ous prisoners than are currently being sentenced.As state 41st Assembly District prisons have become overcrowded, county jail popula- ROBERT PRESLEY tions have come to include more serious and more violent State Senator,36th District offenders.Jails that were adequate to house minor offend- Author of Proposition 52 ers can no longer assure the safety of prisoners,jail staff or RICHARD ROBINSON the community they serve. The chances of riots and es- Member of the Assembly, 72nd District Rebuttal to Argument in Favor of Proposition 52 The proponents of this measure would have us believe only to "plan" to remove them. It does not require coun- that the county jails are overcrowded with criminals con- ties to provide detoxification centers for drunks or com- victed of serious crimes. In fact, over half the population munity care facilities for the mentally disordered, only to of the county jails are people awaiting trial,many of whom "plan" for such services. are innocent and will have their charges dropped. Those are pretty large loopholes and a lot of your tax The latest report from the State Board of Corrections dollars will flow through them. In some counties a single mentions that overcrowding of jails is, to a large extent, jail cell costs $45,000; in other counties the price tag for a due to unwillingness by the counties to use alternatives to single cell rises to $100,000. incarceration. Some of the language in this proposition There are too many people behind bars who don't be- seems to indicate that the counties will be required to long there. Let's correct that situation before we spend implement less expensive alternatives to incarceration,as another $495 million on new jails. well as to provide separate facilities for drunks and the mentally disordered.'In fact, the Legislature deliberately Vote NO on Proposition 52. amended this measure to prevent enforcement of those CLEVE JONES very provisions. As it stands now, this measure does not Legislative Advocate require counties to remove juveniles from adult facilities, Friends Committee on Legislation Join a class action: Vote! Thomas Starr Terrill, Anderson 38 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency P86 County Correctional Facility Capital Expenditure 52 Bond Act of 1986 Argument Against Proposition 52 Once again, California taxpayers are being asked by the as food and clothing and work programs, training and Legislature to spend more money on county jail facilities. education. This burden exists not through lack of alterna- In 1981 they asked for, and received, $280 million. In 1984 tives to the high cost of county jails, but through lack of they asked for,and received,$250 million. Now they want leadership in state government. another $495 million. The Legislature is eager to send criminals to jail for Everyone agrees that California jails are overcrowded, ever-longer terms to satisfy the public's fear of crime,but but new jail construction is unable to keep up with de- we question if they haven't gone too far, overloading the mand and is, at best, only a temporary solution. The jails county jails with non-assaultive offenders who could be are overcrowded because many counties are not using better dealt with in less costly ways with no compromise alternatives to incarceration such as work-furlough -of the public's safety. projects, county parole and bail programs—all appropri- It's time for the Legislature to stop offering the public ate and less expensive alternatives to costly county jails. the deceptive"solution"of placing more and more people 10-15% of the offenders currently locked up in county behind bars. Instead, we need thoughtful and innovative jails are there for being drunk in public; another 10-15% long-range planning, not more expensive stopgap meas- are mentally disordered persons, many of whom are ures. homeless. Some counties continue to lock up juveniles in If our approach to this issue doesn't change, California adult facilities. For these people we need detoxification taxpayers will continue to shovel billions of dollars into an centers, community care facilities and youth programs, apparently bottomless pit of jail construction. not more jail cells. Vote no on Proposition 52. This situation creates an extraordinary financial burden CLEVE JONES for you, the taxpayer, who must pay not only.for jail con- Legislative Advocate struction,but also for jail staffing,prisoner necessities such Friends Committee on Legislation Rebuttal to Argument Against Proposition 52 The opponents are incorrect and have apparently cho- The choices are equally simple. Either we build new sen to ignore the simple facts which prove the need for jails to house the serious criminals that our courts convict this measure. or we release them back into the communities from which Californians have said that they want their state to be they came. tough on crime. Our criminal justice system is handling We urge you to vote"yes"on Proposition 52.This meas- more criminals than ever before. More serious criminals ure will cost each citizen of California less than $2 per are being sent to jail than ever before. Jail sentences are year. longer than ever before. California continues to be a rap- It is necessary. We urge your support for it. idly growing state and there are no signs that the demands on the criminal justice system will ease. PAT NOLAN Our 'ails were filled to overcrowding in 1984 and Cali- Assembly Republican Leader � g 41st Assembly District fornians voted to approve a bond measure then which ROBERT PRESLEY would provide funds to construct additional facilities. state senator,ssth District Again,the jails are seriously overcrowded and,again,addi- Author of Proposition 52 tional funds are needed to build new ones. It's as simple RICHARD ROBINSON as that. Member of the Assembly, 72nd District There's strength in Younity—Vote! Dorothy Hollingsworth, Anderson P86 Arguments printed on this page are the opinions of the authors,and have not been checked for accuracy by any official agency 39 Proposition 42 Text of Proposed Law This law proposed by Assembly Bill 286 (Statutes of Section 16676 of the Government Code for the payment 1985, Ch. 972) is submitted to the people in accordance of the then maturing principal and interest of the bonds with the provisions of Article XVI of the Constitution. in each fiscal year, there shall be returned into the Gen- This proposed law adds sections to the Military and Vet- eral Fund all of the money in the Veterans' Farm and erans Code;therefore,new provisions proposed to be add- Home Building Fund of 1943,not in excess of the principal ed are printed in italic type to indicate that they are new. ofand interest on any bonds then due and payable,except PROPOSED LAW as herein provided for the prior redemption of the bonds, SECTION 1. Article 5s (commencing with Section and, if the money so returned on the remittance dates is 998.074) is added to Chapter 6 of Division 4 of the Military less than the principal and interest then due and payable, and Veterans Code, to read: the balance remaining unpaid shall be returned into the General Fund out of the Veterans'Farm and Home Build- Article 5s. Veterans Bond Act of 1986 ing Fund of 1943 as soon as it shall become available, to- 998.074. This article maybe cited as the Veterans Bond gether with interest thereon from the dates of maturity Act of 1986. until so returned at the same rate of interest as borne by 998.075. The State General Obligation Bond Law the bonds, compounded semiannually. (Chapter 4 (commencing with Section 16720) of Part 3 of 998.079. There is hereby appropriated from the Gen- Division 4 of Title 2 of the Government Code), except as eral Fund,for purposes of this article,a sum of money that otherwise provided herein, is adopted for the purpose of will equal both of the following: the issuance, sale, and repayment of, and otherwise pro- (a) That sum annually necessary to pay the principal of, viding with respect to, the bonds authorized to be issued and the interest on, the bonds issued and sold as provided by this article, and the provisions of that law are included herein, as that principal and interest become due and in this article as-though set out in full in this article. All payable. references in this article to `herein" refer both to this (b) That sum necessary to carry out Section 998.080, article and that law. appropriated without regard to fiscal years. 998.076. As used herein, the following words shall have 998.080. For purposes of this article, the Director of the following meanings: Finance may,by executive order,authorize the withdraw- (a) `Bond"means veterans bond, a state general obli- al from the-General Fund of sum ofmoney not to exceed gation bond issued pursuant to this article adopting the the amount of the unsold bonds which have been author- provisions of the State General Obligation Bond Law. ized by the committee to be sold pursuant to this article. (b) "Committee"means the Veterans'Finance Com- Any sums withdrawn shall be deposited in the Veterans' mittee of 1943. Farm and Home Building Fund of 1943. All money made (c) `Board" means the Department of Veterans Af- available under this article to the board shall be returned fairs. by the board to the General Fund from receipts from the (d) `Fund" means the Veterans' Farm and Home sale of bonds sold under this article, together with interest Building Fund of 1943. at the rate of interest fixed in the bonds so sold. (e) `Bond Act"means this article authorizing the issu- 998.081. Upon request of the board, supported by a ance of state general obligation bonds and adopting the statement ofits plans and projects approved by the Gover- State General Obligation Bond Law by reference. nor, the committee shall determine whether to issue any 998.077. For the purpose of creating a fund to provide bonds authorized under this article in order to carry out farm and home aid for veterans in accordance with the the boards plans and projects, and, if so, the amount of Veterans'Farm,and Home Purchase Act of 1974 (Article bonds to be issued and sold.Successive issues of bonds may 3.1 (commencing with Section 987.50)), and of all acts be authorized and sold to carry out these plans and amendatory thereof and supplemental thereto, the com- projects progressively, and it is not necessary that all the mittee may create a debt or debts,liability or liabilities, of bonds be issued or sold at any one time. the State of California, in the aggregate amount of not 998.082. So long as any bonds authorized under this more than eight hundred fifty million dollars ($850,000,- article are outstanding, the Director of Veterans Affairs 000) in the manner provided herein. shall,at the close of each fiscal year,require a survey of the 998.078. All bonds authorized by this article, when financial condition of the Division of Farm and Home duly sold and delivered as provided herein,constitute val- Purchases, together with a projection of the division's op- id and legally binding general obligations of the State of erations,to be made byan independentpublic accountant California, and the full faith and credit of the State of of recognized standing. The results of each survey and California is hereby pledged for the punctual payment of projection shall be reported in writing by the public ac- both principal and interest thereof countant to the Director of Veterans Affairs,the California There shall be collected annually in the same manner Veterans Board, and the committee. and at the same time as other state revenue is collected a The Division of Farm and Home Purchases shall reim- sum of money,in addition to the ordinary revenues of the burse the public accountant for these services out of any state, sufficient to pay the principal and interest on these money which the division may have available on deposit bonds as provided herein, and all officers required by law with the Treasurer. to perform any duty in regard to the collection of state 998.083. The committee may authorize the Treasurer revenues shall collect this additional sum. to sell all or any part of the bonds authorized by this article On the dates on which funds are remitted pursuant to at the time or times fixed by the Treasurer. 40 P86 Whenever the committee deems it necessary for an ef- of bonds as provided herein, there shall be redeposited in fective sale of the bonds,the committee may authorize the the General Obligation'Bond Expense Revolving Fund, Treasurer to sell any issue of bonds at less than their par established by Section 16724.5 of the Government Code, value, notwithstanding Section 16754 of the Government the amount of all expenditures made for the purposes Code. However, the discount on the bonds shall not ex- specified in that section, and this money may be used for ceed 3 percent of the par value thereof the same purpose and repaid in the same manner when- 998.084. Out of the first money realized from the sale ever additional bond sales are made. Proposition 43 Text of Proposed Law Environmental Quality Act (Division 13 (commencing Continued from page 7 with Section 21000)). (d) Grants that are wholly or partially for the acquisi- that embraces all or part of the territory ofa regional park, tion of real property shall be made on the basis of 75 open-space, or park and open-space district whose board percent state funds and 25 percent local matching funds of directors is not the county board of supervisors, the or property donated to be part of the project. The grant amount allocated to the county shall be apportioned recipientshall certify to the department that there is avail- between the county and the regional district in proportion able,or will become available prior to the commencement to the population of the county that is included within the of any work on the project,matching funds or property in territory of the regional district and the population of the the required amount from a nonstate source. Certification county that is outside the territory of the regional district. of the source and amount or value shall be set forth in the (c) (1) Sixty percent of the total funds available for application. grants shall be allocated to cities and districts, other than (e) The director shall annually forward a statement of regional park, open-space, or park and open-space dis- the total amount to be appropriated in each fiscal year for tricts. Each city's and each such district's allocation shall projects approved for grants to the Director of Finance for be in the same ratio as the city's or districts population is inclusion in the Budget Bill. The amount of grant funds to to the combined total of the state's population that is in- be allocated to each eligible jurisdiction shall be published cluded in incorporated areas and in unincorporated areas in the Governors Budget for the fiscal year in which the within districts, except that each city or district shall be appropriation for those grants is to be made and, as soon entitled to a minimum allocation of twenty thousand dol- as possible,thereafter, a list of projects for which grants lars ($20,000). In any instance in which the boundary of have been approved shall be made available by the de- city overlaps the boundary of district, the population in partment. the area of overlapping jurisdictions shall be attributed to (f) Grant funds shall be encumbered by the recipient each jurisdiction in proportion to the extent to which each within three years of the date the appropriation became operates and manages parks and recreational areas and effective, regardless of the date when the project was ap- facilities for that population. In any instance in which the proved by the department pursuant to this section. boundary of city overlaps the boundary of district,and 5722. Grant funds maybe expended for development, in the area of overlap the city does not operate and man- rehabilitation, or restoration only on lands owned by, or age parks and recreational areas and facilities, all grant subject to a lease or other long-term interest held by, the funds shall be allocated to the district. applicant. If the lands are not owned by the applicant, the (2) Each city and other district whose boundaries over- applicant shall first demonstrate to the satisfaction of the lap, shall develop a speck plan for allocating the grant director that the development, rehabilitation, or restora- funds In accordance with the formula specified in para- tion will provide benefits commensurate with the type graph (1). If, by October 1,.1986, the plan has not been and duration of interest in land held by the applicant. No agreed to by the affected jurisdictions and submitted to grant funds may be expended for any purpose that is not the Department of Parks and Recreation, the Director of directly related to the operation and management of Parks and Recreation shall determine the allocation of the parks and recreational areas and facilities. grant funds among the affected jurisdictions. 5723. ' (a) No grant funds authorized by,this chapter 5721. (a) Individual applications for grants shall be shall be disbursed until the applicant agrees that anyprop- submitted to the departmentfor approval as to conformity erty acquired or developed with those funds shall be used with the requirements of this chapter. The application by the applicant only for the purpose for which the funds shall be accompanied by certification from the planning were requested and that no other use of the property shall agency of the applicant that the project for which the be permitted except by specific act of the Legislature. grant is applied is consistent with the park and recreation (b) No funds shall be disbursed unless the applicant element of the applicable city or county s general plan or agrees to maintain and operate the property to be ac- the districts park and recreation plan and will satisfy a quired or developed for a period commensurate with the high priorityneed.In order.to utilize available grant funds type ofproject and the proportion of state funds and local as effectively aspossible,overlapping or adjoiningjurisdic- matching funds or property allocated to the capital costs tions are encouraged to combine projects and submit a of the project. joint application. (c) No funds shall be disbursed unless the applicant (b) The minimum amount that the applicant may re- agrees to make the property to be acquired or developed quest for any individual project is twenty thousand dollars open to use by the public by a date specified in the agree- ($20,000). ment. That date shall not be more than three years after (c) Every application shall comply with the California the date upon which the project was approved by the P86 41 department pursuant to Section 5721. The department sions of Section 5733,appropriated without regard to fiscal may grant a postponement of the specified date if the years. property is not or will not be open to use by the public by 5733.. For the purposes of carrying out this article, the the specified date due to circumstances wholly beyond the Director of Finance may,pursuant to appropriate author- control of the applicant. If the property is not open to use ity in each annual Budget Act, authorize the withdrawal by the public by the date specified in the agreement, and from the General Fund of an amount or amounts not to any postponement thereof granted by the department, exceed the amount of the unsold bonds which have been the grant funds shall be restored in full to the department authorized to be sold for the purpose of carrying out this and the applicant shall become ineligible to receive any chapter.Any amounts withdrawn shall be deposited in the further funds that may become available pursuant to this fund.Any moneys made available under this section shall chapter. Any funds restored pursuant to this section shall be returned to the General Fund from moneys received be deposited in the fund and shall be available for appro- from the sale of bonds for the purpose of carrying out this priation pursuant to subdivision (b) of Section 5711. chapter. The money withdrawn from the General Fund 5724. Any grant made pursuant to this chapter, and shall be returned to the General Fund with interest at the the performance of the applicant in expending the grant, rate earned by the money in the Pooled Money Invest- may be audited at any time by the department. ment Account during the time the money was withdrawn 5725. Of the total funds available for appropriation from the General Fund pursuant to this section. pursuant to this.chapter, an amount, not to exceed four 5734. The bonds authorized by this chapter shall be hundred thousand dollars ($400,000), may be appropriat- prepared, executed, issued, sold, paid, and redeemed as ed for state administrative costs directly incurred in con- provided in the State General Obligation Bond Law nection with this chapter. (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of Article 4. Fiscal Provisions the provisions of that law apply to the bonds and to this 5730. Bonds in the total amount of one hundred mil- chapter and are hereby incorporated in this chapter as lion dollars ($100,000,000), or so much thereof as is neces- though set forth in full in this chapter. sary, may be issued and sold to provide a fund to be used 5735. Solely for the purpose of authorizing the issuance for carrying out the purposes expressed in this chapter and and sale, pursuant to the State General Obligation Bond to be used to reimburse the General Obligation Bond Ex- Law, of the bonds authorized by this chapter, the Com- pense Revolving Fund pursuant to Section 16724.5 of the munity Parklands Program Finance Committee is hereby Government Code. The bonds shall, when sold, be and created. The committee consists of the Controller, the constitute a valid and binding obligation of the State of Director of Finance, and the Treasurer. For purposes of California, and the full faith and credit of the State of this chapter, the Community Parklands Program Finance California is hereby pledged for the punctual payment of Committee is "the committee"as that term is used in the both principal of, and interest on, the bonds as the princi- State General Obligation Bond Law, and the Treasurer pal and interest become due and payable. shall serve as chairperson of the committee. 5731. There shall be collected each year and in the 5736. All money deposited in the fund which is derived same manner and at the same time as other state revenue from premium and accrued interest on bonds sold'shall be is collected, in addition to the ordinary revenues of the reserved in the fund and shall be available for transfer to state,a sum in an amount required to pay the principal of, the General Fund as a credit to expenditures for bond and interest on,the bonds maturing each year,and it is the interest. duty of all officers charged by law with any duty in regard 5737. The Legislature hereby fmds and declares that, to the collection.of the revenue to do and perform each inasmuch as the proceeds from the sale of bonds author- and every act which shall be necessary to collect that addi- ized by this chapter are not `proceeds of taxes"as that tional sum. term is used in Article XIII B of the California Constitu- 5732. There is hereby appropriated from the General tion, the disbursement of these proceeds is not subject to Fund,for the purpose of this chapter,an amount that will the limitations imposed by that article. ,equal the,total of the following. 5738. If any provision of this chapter or the application (a) The sum annually necessary to pay the principal of, thereof to any person or circumstance is held invalid, that and interest on, bonds issued and sold pursuant to this invalidity shall not affect other provisions or applications chapter, as principal and interest become due and pay- of the chapter which can be given effect without the able. invalid provision or application,and to this end, the provi- (b) The sum which is necessary to carry out the prpvi- sions of this chapter are severable. Proposition 44 Text of Proposed Law a land farm,a pile,an emergency containment dike, tank, Continued from page 11 or injection well. (B) Conveyance facilities to the treatment or storage graphic depression, artificial excavation, or diked area site, including devices for flow regulation. formed primarily of earthen materials, which is designed (C) Facilities or works to treat agricultural drainage to hold an accumulation of drainage water,including, but water to remove or substantially reduce the level of con- not limited to,holding,storage,settling,and aeration pits, stituents which pollute or threaten to pollute the waters evaporation ponds, percolation ponds, other ponds, and of the state,including, but not limited to,processes utiliz- lagoons. Surface impoundment does not include a landfill, ing ion exchange, desalting technologies like reverse os- 42 P86 mosis, and biological treatment. of each proposed project and that the project is cost effec- (D) An injection well. Live. (2) Any or all of the drain water management units, 13453. There is hereby created the 1986 Water Conser- including the land under the unit,may consist ofseparable vation and Water Quality Bond Fund in the State Treas= features,or an appropriate share ofmultipurpose features, ury. There shall be established in the fund a Water Conser- of a larger system, or both. vation and Groundwater Recharge Account for the (e) `Fund" means the 1986 Water Conservation and' purpose of implementing Section 13458, and an Agricul- Water Quality Bond Fund. tural Drainage Water Account for the purpose of imple- (f) "Groundwater recharge facilities"mean land and menting Section 13459.. facilities for artificial groundwater recharge through 13454. (a) There is a Water Conservation and Water methods which include, but are not limited to, (1) perco- Quality Finance Committee consisting of the Governor or lation- using basins, pits, ditches and furrows, modified the Governors designated representative, the Controller, streambed, flooding, and well injection or (2) in-lieu re- the Treasurer, the Director of Finance, the Director of the charge. "Groundwater recharge facilities"also mean capi- Department of Water Resources, and the Executive Di- tal outlay expenditures to expand,renovate,or restructure rector of the State Water Resources Control Board. land and facilities already in use for the purpose ofground- (b) The Water Conservation and Water Quality Fi- water recharge. nance Committee is the "committee"as that term is used Groundwater recharge facilities may include any of the in the State General Obligation Bond Law. following: 13455. (a) The committee may create a debtor debts, (1) Instream facilities for regulationof water levels,but liability or liabilities,of the State of California in the aggre- not regulation of streamflow by storage to accomplish di- gate amount of one hundred fifty million dollars version from the waterway. ($150,000,000), in the manner provided in this chapter. (2) Agency-owned facilities for extraction. The debt or debts,liability or liabilities,shall be created for (3) Conveyance facilities to the recharge site,including the purpose ofproviding the fund to be used for the object devices for flow regulation and measurement of recharge and work'specified in this section and in Sections 13458 waters. and 13459. Anypart oral]of the project facilities,including theland (b) The department may enter into contracts and may under the facilities, may consist of the separable features, adopt rules and regulations necessary to carry out the or an appropriate share of multipurpose features, of a purposes of Section 13458. larger system, or both. (c) The department may expend not more than 2% (g) "In-lieu recharge"means accomplishing increased percent of the total amount of the bonds authorized to be storage ofgroundwater byproviding interruptible surface issued under this chapter for the administration of Section water to a user who relies on groundwater as a primary 13458. supply, to accomplish groundwater storage through the (d) The board may enter into contracts and may adopt direct use of that surface water in lieu ofpumping ground- rules and regulations necessary to carry out the purposes water. In-lieu recharge would be used rather than con- of Section 13459. tin uing pumping while artificially recharging with the in- (e) The board may expend not more than 2%percent terruptible surface waters. However, bond proceeds shall of the total amount of the bonds authorized to be issued not be used to purchase surface water for use in lieu of under this chapter for the administration of Section 13459. pumping groundwater. (f) The department or the board may expend funds (h) "Local agency"or "agency"means any city, coun- necessary to reimburse the General Obligation Bond Ex- ty, district,joint powers authority, or other political sub- pense Revolving Fund pursuant to Section 16724.5 of the division of the state involved with water management. Government Code. (i) `Project"means all of the following: 13456. All bonds which have been duly sold and deliv- (1) Groundwater recharge facilities. ered constitute valid and legally binding general obliga- (2) Voluntary, cost-effective capital outlay water con- tions of the State of California,and the full faith and credit servation programs. of the State of California is pledged for the punctual pay- (3) Drainage water management units. ment of both principal and interest. U) "Voluntary, cost-effective capital outlay water con- There shall be collected annually in the same manner, servation programs" mean those feasible capital outlay and at the same time as other state revenue is collected, measures to improve the efficiency of water use through the amount, in addition to the ordinary revenues of the benefits which exceed their costs. The programs include, state,required to pay the principal of,and interest on, the but arenot]imited to,lining orpiping of ditches;improve- bonds.It is the duty of all officers charged bylaw with any ments in water distribution system controls such as auto- duty in regard to the collection of that revenue to perform mated canal control,construction of small reservoirs with- each and every act which is necessary to collect this addi- in distribution systems which conserve water that has tional amount. already been captured for use, and related physical im- All money deposited in the fund which has been derived provements;tailwater pumpback recovery systems;major from premium and accrued interest on bonds sold is avail- improvements or replacements of distribution systems to able for transfer to the General Fund as a credit to expend- reduce leakage;and capital changes in on-farm irrigation itures for bond interest. systems which improve irrigation efficiency such as sprin- 13457. The State General Obligation Bond Law is kler or subsurface drip.In each case, the department shall adopted for the purpose of the issuance, sale, and repay- determine that there is a net savings of water as a result ment of, and other matters with respect to, the bonds P86 43 authorized by this chapter. The provisions of that law are forth the economic justification and the engineering, hy- included in this chapter as though set out in full in this drogeologic, and financial feasibility of the project, and chapter,except that,notwithstanding any provision in the shall include explanations of the proposed facilities and State General Obligation Bond Law, the bonds authorized their relation to other water-related facilities in the basin under this chapter shall bear the rates of interest, or max- or region. imum rates,fixed from time to time by the Treasurer with (3) An agreement by the agency to proceed expedi- the approval of the committee. The maximum maturity of tiously to complete the project in conformance with the the bonds shall not exceed 50 years from the date of the approved plans and specifications and the feasibility re- bonds or from the date of each respective series. The ma- port and to operate and maintain the project properly turity of each respective series shall be calculated from the upon completion throughout the repayment period. date of the series. (4) A provision that there shall be no moratorium or 13458. (a) The sum of seventy-five million dollars deferment on payment of principal or interest. ($75,000,000) of the money in the fund shall be deposited (5) A loan-period of up to 20 years with an interest rate in the Water Conservation and Groundwater Recharge set annually by the department at 50 percent of the inter- Account and, notwithstanding Section 13340 of the Gov- est rate computed by the true interest cost method on ernment Code, is appropriated for expenditure in the bonds most recently issued pursuant to this chapter. The 1986-87fiscal year for loans to local agencies to aid in the interest rate setfor each contractshall be applied through- acquisition and construction of voluntary, cost-effective out the contracts repayment period. There shall be a level capital outlay water conservation programs and ground- annual repayment of principal and interest on the loans. water recharge facilities and the purposes set forth in this (6) A provision that the project shall not receive any section. Loans made in the 1986-87fiscal year may not be more than five million dollars ($5,000,000) in loan pro- authorized sooner than 30 days after notification in writ- ceeds from the department. ing of the necessity therefor to the chairperson of the The department shall give priority under this subdivi- committee in each house which considers appropriations, sion to projects of agencies located in overdrafted ground- to the policy committee of the Assembly as designated by water basins and those projects of critical need, to projects the Speaker of the Assembly and the policy committee of whose feasibility studies show the greatest economic justi- the Senate designated by the Senate Rules Committee, fication and the greatest engineering and hydrogeologic and the Chairperson of the Joint Legislative Budget Com- feasibility as determined by the department, and to mittee. projects located in areas which have existing water man- (b) Any contract entered into pursuant to this section agement programs. may include provisions as may be determined by the de- (d) The department may make loans to local agencies, partment. However, any contract concerning an eligible, at the interest rates authorized under this section and voluntary,cost-effective capital outlay water conservation under any terms and conditions as may be determined program shall be supported by or shall include, in sub- necessary by the department, for the purposes of fmanc- stance, all of the following.• ing feasibility studies of projects potentially eligible for (1) An estimate of the reasonable cost and benefit of funding under this section. No single potential project the program. shall be eligible to receive more than one hundred thou- (2) An agreement by the local agency to proceed ex- sand dollars ($100,000),and notmore than 3percentofthe peditiously with, and complete, the program. total amount of bonds authorized to be expended for pur- (3) A provision that there shall be no moratorium or poses of this section may be expended for this purpose. A deferment on payments of principal or interest. loan for a feasibility study shall not decrease the maximum (4) A loan period of up to 20 years with an interest rate amount of any other loan which may be made under this set annually by the department at 50 percent of the inter- section. est rate computed by the true interest cost method on 13459. (a) The sum of seventy-five million dollars bonds most recently issued pursuant to this chapter. The ($75,000,000) of the money in the fund shall be deposited interest rate setfor each contract shall be applied through- in the Agricultural Drainage Water Account is appropriat- out the contracts repaymentperiod. There shall be a level ed for expenditure in the 1986 87 fiscal year for loans to annual repayment of principal and interest on the loans. agencies to aid in the construction of drainage waterman- (5) A provision that the project shall not receive any agement units for the treatment, storage, or disposal of more than five million dollars ($5,000,000) in loan pro- agricultural drainage water and the purposes set forth in ceeds from the department. this section. The board may loan an agency up to 100 The department shall set priority for loans under this percent of the total eligible costs of design and construc- subdivision on the basis of the cost effectiveness of the tion ofan eligible project.Loans made in the 1986-.87fiscal proposed project, with the most cost-effective projects re- year may not be authorized sooner than 30 days after ceiving the highest priorities. notification in writing of the necessity therefor to the (c) Any contract concerning an eligible project for chairperson of the committee in each house which consid- groundwater recharge shall be supported by or shall in- ers appropriations, to the policy committee of the Assem- clude, in substance, all of the following. bly as designated by the Speaker of the Assembly and the (1) A finding by the department that the agency has policy committee of the Senate designated by the Senate the ability to repay the requested loan, that the project is Rules Committee,and the Chairperson of the Joint Legis- economically justified,and that the project is feasible from lative Budget Committee. an engineering and hydrogeologic viewpoint. (b) Any contract for an eligible project entered into (2) An estimate of the reasonable cost and benefit of pursuant to this section may include such provisions as the project, including a feasibility report which shall set determined by the board and shall include, in substance, 44 P86 all of the following provisions. to this chapter, as the principal and interest become due (1) An estimate of the reasonable cost of the eligible and payable. project. (b) The amount necessary to carry out Section 13462, (2) An agreement by the agency to proceed expedi- which is appropriated without regard to fiscal years. tiously with, and complete, the eligible project; com- 13462. For the purpose of carrying out this chapter, the mence operation of the containment structures or treat- Director of Finance may, by executive order, authorize ment works upon completion and to properly operate and the withdrawal from the General Fund of amounts not to maintain the works in accordance with applicable provi- exceed the amount of the unsold bonds which the commit- sions of law;provide for payment of the agency's share of tee has authorized to be sold for the purpose of carrying the cost of the project,including principal and interest on out this chapter. any state loan made pursuant to this section;and,ifappro- The amounts withdrawn shall be deposited in the fund priate, apply for and make reasonable efforts to secure and shall be disbursed by the department or the board in federal assistance for the state-assisted project. accordance with this chapter. Any money made available (c) All loans pursuant to this section are subject to all under this section to the department or the board shall be of the following provisions: returned to the General Fund from money received from (1) Agencies seeking a loan shall demonstrate, to the the sale of bonds. The withdrawals from the General Fund satisfaction of the board, that an adequate opportunity for shall be returned to the General Fund with interest at the public participation regarding the loan has been provided rate which would,have otherwise been earned by those (2) Any election held with respect to the loan shall withdrawals in the Pooled Money Investment Fund. include the entire agency except where the agency pro- 13463. Upon request of the department or the board, poses to accept the loan on behalf of a specified portion, the committee shall determine whether or not it is neces- or portions, of the agency, in which case the referendum sary or desirable to issue bonds authorized under this shall be held in that portion or portions of the agency only. chapter. (3) Loan contracts may not provide a moratorium on 13464. The committee may authorize the Treasurer to payment of principal or interest. sell all, or any part, of the bonds at times fixed by the (4) Loans shall be for a period of up to 20 years with an Treasurer. interest rate set annually by the board at 50 percent of the 13465. Notwithstanding Sections 13458 and 13459, the interest rate computed by the true interest cost method' committee may proscribe further terms and conditions for on bonds most recently issued pursuant to this chapter. loan contracts to authorize a deferment on payment of all The interest rate set for each contract shall be applied or part of the principal. throughout the contracts repayment period. There shall 13466. For the 1987-88 fiscal year and each year there- be a level annual repayment of principal and interest on after,a loan may be made by the department or the board loans. only upon the specific approval of the Legislature, by an (5) The board in considering eligible projects shall give act enacted after the receipt of a report filed pursuant to preference to technologies which treat drainage water Section 13467 where the board finds that the technology is readily avail- 13467. (a) The department shall annually submit a re- able and economically feasible for the agency. port to the Legislature on the status of the loan program (6) No single project may receive more than twenty authorized under Section 13458,including prioritized list million dollars ($20,000,000) in loan proceeds from the of projects eligible for funding, and the need for financial board. assistance for voluntary,cost-effective capital outlay water (d) The board may make loans to local agencies, at the conservation programs and groundwater recharge facili- interest rates authorized under this section and under any ties. terms and conditions as may be determined necessary by (b) The board shall annually submit a report to the the board, for purposes of financing feasibility studies of Legislature on the status of the loan program authorized projects potentially eligible for funding under this section. under Section 13459,includinga prioritized list of projects No single potential project shall be eligible to receive eligible for funding,and the status of agricultural drainage more than one hundred thousand dollars ($100,000), and problems on a statewide basis. not more than 3 percent of the total amount of bonds 13468. It is the intent of language in Section authorized to be expended for purposes of this section 13998.8(i) (3), Section 13999.10(d), and Section may be expended for this purpose. A loan for a feasibility 13999.11(d) of the Water Code which was enacted by the study shall not decrease the maximum amount of any voters in the Clean Water Bond Law of 1984 that "the other loan which may be made under this section. average interest rate paid by the state on general obliga- 13460. Money deposited in the fund pursuant to any tion bonds in the calendar year immediately preceding provision of law requiring repayments to the state for the year in which the loan agreement is made"means the assistance financed by the proceeds of the bonds author- interest rate computed by the true interest cost method ized by this chapter shall be available for transfer to the on the bonds most recently issued pursuant to the Clean General Fund as a reimbursement for payment of bond Water Bond Law of 1984. principal and interest. 13469. If any provision of this chapter or the applica- 13461. There is hereby appropriated from the General tion thereof to any person or circumstance is held invalid, Fund,for the purpose of this chapter,an amount equal to that invalidity shall not affect other provisions or applica- the sum of the following. tions of the chapter which can be given effect without the (a) The amount necessary annually to pay the principal invalid provision or application,and to this end the provi- of,and the interest on, the bonds issued and sold pursuant sions of this chapter are severable. P86 45 Proposition 52 Text of Proposed Law amount or amounts not to exceed the amount of the un- Continued from page 37 sold bonds which the committee has by resolution author- ized to be sold for the purpose of carrying out this title. (b) Demonstrate that it has adequate facilities for men- Any amounts withdrawn shall be deposited in the fund tally ill inmates or detainees and for those persons arrested and shall be disbursed by the board in accordance with because ofinebriation,or demonstrate that ithas a plan for this title.Anymoney made available under this section to the provision of services to these persons. the board shall be returned by the board to the General (c) Demonstrate that it has utilized, to the greatest Fund from moneys received from the sale of bonds sold practicable extent,alternatives tojail incarceration such as for the purpose of carrying out this title. These withdraw- sheriffs work release under Section 4024.2, own recogni- als from the General Fund shall be returned to the Gen- zance release, and weekend work programs. eral Fund with interest at the rate which would have oth- 4485.7. Moneys in the fund may be available for con- erwise been earned by these sums in the Pooled Money struction ofjoint-use correctional facilities housing county Investment Fund and state or federal prisoners or any combination thereof 4490. The committee may authorize the Treasurer to in proportion to the county's benefit. sell all or any part of the bonds herein authorized at such 4486. (a) When sold,the bonds authorized by this title time or times as may be fixed by the Treasurer. shall constitute valid and legally binding general obliga- 4491. All proceeds from the sale of bonds, except those tions of the State of California,and the full faith and credit derived from premiums and accrued interest, shall be of the State of California is hereby pledged for the punc- available for the purpose provided in Section 4485 but tual payment of both principal and interest thereon. shall not be available for transfer to the General Fund to (b) There shall be collected annually in the same man- pay principal and interest on bonds. The money in the ner and at the same time as other state revenue is collect- fund may be expended only as herein provided ed such a sum,in addition to the ordinary revenues of the 4492. Notwithstanding Section 16305.7 of the Govern- state,as shall be required to pay the interest and principal ment Code,all interest or other increment resulting from on the bonds maturing each year, and it is hereby made the investment of moneys deposited in the fund shall be the duty of all officers charged by law with any duty in credited to the fund regard to the collection of the revenue to do and perform 4493.' Money in the fund may only be expended for each and every act which shall be necessary to collect that projects specified in this title as allocated in appropriations additional sum. made by the Legislature. (c) All money deposited in the fund which has been 4494. (a) It is the intent of the people in enacting this derived from premium and accrued interest on bonds sold bond act that jail authorization and construction proceed shall be available for transfer to the General Fund as a as quickly as possible. Due to the severe shortage of jail credit to expenditures for bond interest. facilities and the need to begin construction ofjail facilities 4487. All money deposited in the fund pursuant to any as soon as possible, all decisions of the board regarding provision of law requiring repayments to the state for construction,reconstruction, remodeling, or replacement assistance financed by the proceeds of the bonds author- of jail facilities financed by this title shall be final. ized by this title shall be available for transfer to the Gen- (b) No court shall havejurisdiction over these decisions eral Fund. When transferred to the General Fund, this of the board absent a showing,beyond a reasonable doubt, money shall be applied as a reimbursement to the General of a gross abuse of discretion by the board. Fund on account of principal and interest on the bonds (c) Should an action be commenced alleging gross which have been paid from the General Fund abuse of discretion by the board,no court shall have juris- 4488. There is hereby appropriated from the General diction to delay,prohibit, or interfere with the construc- Fund in the State Treasury for the purpose of this title tion,'reconstruction, remodeling, or replacement of the such an amount as will equal the following: subject jail facilities. The sole remedy available to the (a) That sum annually as will be necessary to pay the court is a mandate that steps be taken to mitigate the principal of and the interest on the bonds issued and sold abuse of discretion. pursuant to the provisions of this title, as principal and (d) Nothing in this title is intended in anyway to delay, interest become due and payable. prohibit,or interfere with the construction ofjail facilities. (b) That sum as is necessary to carry out the provisions 4495. If any provision of this title, or the application of Section 4489, which sum is appropriated without regard thereof,is held to be invalid, that invalidity shall not affect to fiscal years. the other provisions or applications of the title which can 4489. For the purpose of carrying out the provisions of be given effect without the invalid provision or applica- this title, the Director of Finance may by executive order tion, and to this end the provisions of this title are severa- authorize the withdrawal from the General Fund of an ble. Photoelectronic composition by 46 86 81230 ()N. Fll(:F.OF..I.,n.:P11%1IM: P86 COMMONLY ASKED QUESTIONS ABOUT VOTING 1. When is the last day I can register to vote for the election? The 29th day before the election (May 5, 1986). 2. Who can register to vote? Any citizen can register to vote if he or she is 18 years old by election day, a resident of California, and is not imprisoned or on parole for the conviction of a felony. 3. I have just moved. Do I need to reregister? Yes.Your voter registration should always reflect your current residence address. 4. I want to change political parties. Do I need to reregister? Yes. Be sure to fill out the "prior registration" portion of the voter registration form. 5. I did not vote in the last election. Do I need to reregister? In general, you are registered for as long as you remain at the same address, and you should continue to receive election materials in the mail. 6. I have not voted in several years. Do I need to reregister? Again, as long as you have not moved you should still be registered. However, it would not hurt to check with your local elections official to be sure that your name has not been inadvertently removed from the voter registration lists. 7. I am in the military. How do I register to vote? You may register using your base address to determine your county of residence. 8. I will be 18 years old before the day of the election but after the close of registration. Can I register to vote? Yes. As long as you are 18 by election day you are eligible to vote. 9. If people do not vote in the June Primary Election will they be able to vote in the November General Election? Yes. 10. I have moved. Can I change my address over the phone? No, but you may notify the elections officer by mail. 11. I just moved next door (or to another apartment in the same building). Do I need to reregister? Yes. 12. I am away at school. Do I use my address at college or my parents' address? Either one, but only one. • 13. I am on probation for a felony. Can I register to vote? No. You may register when your probation period is completed. 14. What information will I get before the election? You should get this California Ballot Pamphlet and a mailing containing a sample ballot and related material. 15. Where do I go to vote? Your polling place address is printed in the material you receive with your sample ballot. P86 47 MARCH. FONG EU Secretary of State 1230 J STREET - SACRAMENTO, CA 95814 In an effort to reduce election costs,the State Legislature has authorized the Secretary of State and counties having this capability to mail only one ballot pamphlet to addresses where more than one voter with the same surname resides. If you wish additional copies, you may obtain them by calling or writing to your county clerk or registrar of voters. CERTIFICATE OF SECRETARY" OF STATE I, March Fong Eu,Secretary of State of the State of California,do hereby certify that the foregoing treasures will be submitted to the electors of the State of CaliforniaVA% at the PRIMARY ELECTION to be held throughout the State on June 3, 1986 and VAIA g J that the foregoing pamphlet has been correctly prepared in accordance with law. 1 Witness my hand and the Great Seal of the State in Sacramento, California, this 24th day of March 1986. zo to FORK P MARCH FONG EU Secretan'of State 5 R.A.SCOTT O U NTY O IFC:) RANG E Director,General Services Agency 12q ROBERT A.GRIFFITH 5 3 GENERAL SERVICES AGENCY Director of Special Services SPECIAL SERVICES REGISTRATION & ELECTIONS DIVISION A.E.OLSON, REGISTRAR OF VOTERS Mailing Address: 1300 S.Grand Avenue P.O.Box 11298 Santa Ana,CA 92705 Santa Ana,California 92711 (714)834-2244 May 5, 1986 Alicia Wentworth, City Clerk City of Huntington Beach 2000 Main St. Huntington Beach, CA 92648 Dear Ms. Wentworth: We are requesting your authorization to leave election supplies and a box of ballot punches at ,your office for the June 3, 1986 Primary and November 4, 1986 General Elections. We have 2079 orecincts throughout. the County of Orange that we deliver supplies to. Occasionally, supplies from the box are misplaced. With your assistance, if a precinct has a shortage' of supplies on Election Day, the Precinct Officer may pick them up at the nearest City Clerk's office. We would deliver the box of supplies and ballot punches to your office the latter part of May, 1986. Please confirm by calling me at 834-2265. Your assistance is greatly appreciated. Very truly yours, Karen Boardman Supervising Clerk I Precinct Section. amf ABSENT VOTER BALLOT APPUC k11ON MAIL COMPLETED OFRCIAL USE ONLY FORM TO ' State Primary Election �I June 3, 1986 Registrar of Voters P. 0. Box 11298 Santa Ana, CA 92711 PLEASE PRINT REGISTERED NAME Application must be received by the county FIRST NAME MIDOLE NAME LAST NAM! DATE OF BIRTH clerk/registrar of voters no law than RESIDENCE ADDRESS (DO NOT USE P.O. SOX NUMBER) May 27, 1986 NUMBER ANO STREET-DESIGNATE N.& IL W CITY 23P Voters with specified disabilities may qualify as PERMANENT ABSENT SIGNATURE OF APPLICANT(00 NOT PRINT) DATE (AREA CODED DAYTIME TELEPHONE VOTERS. Contact your local county clerk or registrar of voters for further I have not and will not apply for an absentee information. ballot by any other means. (AREA COOQ RSMOENCE TELEPHONE 834-2244 THIS APPLICATION WILL NOT BE ACCEPTED WITHOUT PROPER SIGNATURE OF APPLICANT MAILING ADORES$ FOR BALLOT pP DIFFERENT FROM ABOVQ The format used an this application STREET OR BOX must be used by all individuals, organizations, and groups who distribute absentee ballot applications. CITY STATE LP CA Elections Code 1006.1 THIS FORM WAS PROv10EO BY Alicia M. Wentworth, City Clerk, Huntington Beach s •r. `I t OF TN A Office of the Secretary of State Executive Office (916) 445-6371 All March Fong Eu 1230 J Street Y - Sacramento, California 95814 T D D : (8 0 0) 8 3 3-8 6 8 3 IIFORNP March 24, 1986 TO: AL CANDID TE AND PO ITICAL ACTION -COMMITTEES FROM: MARCH FONG EU Secretary of State' SUBJECT : ABSENTEE BALLOT APPLICATIONS Chapter 760 , Statutes of 1985 ( Jones ) requires me to prepare and distribute to elections officials a uniform application format for an absent voter ballot . According to the new law which took effect on January 1, 1986 , the uniform format must be used by all groups and organizations which distribute absentee ballot applications . I have prepared this format and distributed it to elections officials as required. In addition I have instructed them regarding the use of the form and the allowable changes that might be made . I am enclosing a copy of the format and the instructions for your reference . It is important to note that any changes to the format should be approved by the local elections officials and, if necessary, will be referred to my office . One critical ele- ment of the format I have designed involves the mailing address . You will note on the face of the form a space for the elections official ' s mailing address . If the form is applied to a postcard, the return address on the back of the card must be' the same address as that on the face .. There appears to be some misunderstanding of this point - as many cam- paigns now seek to abide by the new law. I hope this information is helpful . If you have any questions about this letter or about absentee ballot applications you intend to prepare, please contact my Chief Deputy, Anthony Miller at (916) 445 -6371 or my Chief. of Elections , Deborah Seiler at (916) 445-0820. Thank you for your cooperation. Enclosure cc : All , city and county clerks A ABSENT VOTER BALLOT APPLICATION MAIL COMPLETED IOFFlaAL USE ONLY FORM TO I PLEASE PRINT REGISTERED NAME FIRST NAME MIDDLE NAME LAST NAME DATE OF BIRTH Application must be received by the county clerk/registrar of voters no later than RESIDENCE ADDRESS (DO NOT USE P.O. BOX NUMBER) NUMBER AND STREET—DESIGNATE N.S.E. W CITY ZIP Voters with specified disabilities may qualify as PERMANENT ABSENT SIGNATURE OF APPLICANT(00 NOT PRINT( DATE (AREA CODE)DAYTIME TELEPHONE VOTERS. Contact your local county clerk or registrar of voters for further I have not and will not apply for an absentee information• ballot by any other means. (AREA CODE)RESIDENCE TELEPHONE THIS APPLICATION WILL NOT BE ACCEPTED WITHOUT PROPER SIGNATURE OF APPLICANT MAILING ADDRESS FOR BALLOT(IF DIFFERENT FROM ABOVE) The format.used on this application STREET OR Box must be used by all individuals, organizations, and groups who distribute absentee ballot applications. CITY STATE ZIP CA Elections Code 1006.1 THIS FORM WAS PROVIDED BY INSTRUCTIONS FOR USE OF STANDARDIZED ABSENTEE BALLOT APPLICATION r Sections 1006.1 of the California Elections Code requires that all indivi- duals, groups and organizations circulating applications for absentee ballots use a standardized format approved by the Secretary of State.; Included with this memo is a sample copy of the approved form with'instruc- tions for use. Also enclosed is a camera ready copy of the for Please make any approved changes to the camera ready form and make copies of it available to groups wishing to circulate absentee ballot applications. Election officials should fill in each of the blanks on the form with the following information: 1 . Name and date of the election. 2. Name and address of the election official to receive the applications. These applications are to be mailed directly to the election official conducting the election. 3. If the election is being conducted by an official other than the county clerk/registrar of voters, this term may be changed to city clerk, etc. 4. Date application must be received by the official conducting the election. 5 . Election officials at their option may include an "X" in this spot to indicate where the voter is to sign the application. 6. Election officials at their option may include the telephone number for voters to call with questions concerning the election. 7. If known, the election official should insert the name of the campaign, organization, group or individual that will be circulating the applica- tion. The copy provided by the Secretary of State is 8yz" x 5Y2". Counties or cities may alter the size of the application to meet local need. However, only the following exceptions to the provided text will be allowed. THESE OPTIONAL CHANGES MAY BE MADE ONLY BY THE OFFICIAL RESPONSIBLE FOR CONDUCTING THE ELECTION. 1 . Date of birth may be left off. 2. If more information is needed on the line for street address, election officials may ask for township, range, grid, etc. 3. Telephone number may be omitted if desired. 4. Election officials may use any available space on the application to include an affidavit number of voter. 5. This application may be reproduced as a post card. If so, the mailing address on the opposite side of the card must be the address of the official conducting the election. (See reverse side for format) Ve(rome to THE CITY OF HUNTINGTON BEACH g t. A portion of the document you are viewing contains additional information that has not been scanned . For information on how to view the original , please contact or visit the City Clerk's Office for assistance . 2000 Main Street 2nd Floor — City Hall Huntington Beach CA 92648 (714) 536-5227 O o U NT'Y O F Risk Management © Post Office Boa 327 O D 702 © ANGF— 38, _ CERTIFICATE OF INSURAN`CEF BEACH �A ,` This certificate is issued to: ADf+I.�Ji Ti': OFFICE HUNTINGTON BEACH CITY HALL d b`•- ,. ci -51,_,1119 _ CG 2000 MAIN ST HUNTINGTON BEACH, CA 92648 This is to certify that the County of Orange is self-insured for the following coverages: Type of Coverage Self-Insured Limits GENERAL LIABILITY This includes: $ 5 million 1. Comprehensive General Liability per 2. Contractual Liability occurrence 3. Products and Completed Operations 4. Fire Legal Liability AUTOMOBILE LIABILITY This includes: $ 5 million 1. Owned automobiles per 2. Nonowned automobiles occurrence 3. Hired automobiles OTHER This facility is being used as a polling place for the Primary Election June 3, 1986. cc: Juanita Stokes Ile Issued: 4/25/86 Registrar of Voters Authorized Signature Maria Bastanchury, Risk Manager t 4 tD Card Code 2 • (�►f }3 t Primary ©. 1 June =� / El Nov. Precinct (2 J ) I POLLING PLACE FORM General ' 4 t Board Number 1 (7) I , 1 (Please Print) ; �� Special ❑ 3 Date (8) I PLEASE COMPLETE AND SIGN THIS FORM. RETAIN THE YELLOW COPY FOR Udel ❑ 4 Date - — FOR OFFICE USE ONLY— — — —I YOUR RECORDS AND RETURN THE ORIGINAL IN THE ENCLOSED ENVELOPE. THANK YOU. (80) s ' U 0 Facility Name 0 ,Street Zip Telephone +1 0 or Street Name/Suffix ;City Name L a U Number Code Number Last Name o _ Q oco }, i cats ;v O M LL LL 2 - .., 9 10 1' 23 27 31 32 33341,35 52 53 64 65 69 70 76 78 .79 .s:36 Ss7 ¢ , �1J 11 THIS CONSTITUTES OFFICIAL DESIGNATION OF A POLLING PLACE. YOU WILL FURNISH 4 CHAIRS, A SUITABLE /',! � �j lGf7a h0 Sj G d'i /L-al TABLE AND ADEQUATE LIGHTING. POLLS WILL BE OPEN FROM 7 A.M. TO 8 P.M. AND THE PRECINCT BOARD WILL 5It l/y //V. NEED„ACCESS TO THE FACILITY FROM 6t30 A.M. UNTIL MATERIAL CAN BE REMOVED. , THE COUNTY AGREES TO HOLD THE OWNER OF THE INDICATED PREMISES, HIS LESSEE AND THEIR AGENTS HARMLESS FROM ANY LIABILITY FOR 7 ALL SUMS WHICH THE COUNTY SHALL BECOME OBLIGATED TO PAY BY REASON OF .PERSONAL INJURY AND — — -FOR OFFICE USE ONLY — — — - -�OPERTY DAMAGE OCCURRING AS A RESULT OF, DURING AND IN THE COURSE OF THE USE OF THE PREMISES ,RSUANT TO THIS AGREEMENT, BUT THE COUNTY SHALL NOT BE- LIABLE FOR LOSS BY THEFT OF ANY PER- ( Proofed: SONAL PROPERTY OF THE OWNER LEFT ON THE PREMISES DURING SUCH USE. By Date SIGNED v Owner or Occupant 1 MAILING ADDRESS DATE By.' Date MAKE CHECK PAYABLff Td MAILING ADDRESS DATE ' Registrar of Voters 834-2253 POLLING PLACE CANNOT BE CHANGED WITHIN 45 DAYS OF THE ELECTION. ® F0270-36.3(RV)(R6/85)