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HomeMy WebLinkAboutNovember 7, 2006 - 2006 California General Election - Offici r. f CALIFORNIA GENERAL E,L'ECTION ss. Tuesday, '� •'EU R•E K,q+ yF NOVEMBER 7 , 2006 A w R' 4" o CERTIFICATE OF CORRECTNESS r � I,Bruce McPherson,Secretary of-State of the State of California,do hereby certify that the measures included herein will be submitted to the electors'of the State of California at the General Election to cq C►F O RN P be held throughout the State on November 7, 2006,and that this guide has been correctly prepared in accordance with the law. Witness my hand and the Great Seal of the State in Sacramento, California,this 14th day of August;2006. Bruce McPherson i Secretary of State is VoterOfficial 1 , 1 PROPOSITION HIGHWAY SAFETY, TRAFFIC REDUCTION, HIGHWAY SAFETY, TRAFFIC REDUCTION, PROP AIR C,UALITY, AND PORT SECURITY BOND ACT OF 2006. r AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006. 1B _ 1B OFFICIAL TITLE AND SUMMARY* * * Prepared by the Attorney General * * *ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) (trucks), which generate roughly $900 million Figure 1 (see next page)summarizes the purposes HIGHWAY SAFETY, TRAFFIC REDUCTION,' • a year. Generally, these revenues must be used for which the bond money would be used. The AIR QUALITY, AND PORT SECURITY BOND ACT OF 2006. for specific transportation purposes, including bond money would be available for expenditure improvements to highways, streets and roads, . by various state agencies and for grants to local • Makes safety improvements and repairs to state highways; upgrades freeways to reduce congestion; passenger rail, and transit systems. These funds agencies and transit operators upon appropriation repairs local streets and roads; upgrades highways along major transportation corridors. may also be used to mitigate the environmental by the Legislature: • Improves seismic safety of local bridges. impacts of various transportation projects. Under • Expands public transit. Congestion Reduction, Highway and Local • Helps complete the state's network of car pool lanes. specified conditions,these revenues may be loaned Road Improvements $11.3 billion—for capital • Reduces air pollution. or used for nontransportation uses. improvements to reduce congestion and'increase • Improves anti-terrorism security at shipping ports. Since 1990, voters have approved roughly capacity on state highways, local roads, and • Provides for a bond issue not to exceed nineteen billion nine hundred twenty-fivegmillion dollars $5 billion in state general obligation bonds to.fund public transit for grants available to locally funded ($19,925,000,000). transportation. These bond proceeds have been transportation projects, as well as for projects to • Appropriates money from the General Fund to pay off bonds. _ dedicated primarily to passenger- rail and transit rehabilitate state highways and local roads. 1 improvements, as well as to retrofit highways and Public Transportation—$4 billion—to make Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: bridges for earthquake safety. As of June 2006, all capital improvements' to local transit services • State costs of about $38.9 billion over 30 years to pay off both the principal ($19.9 billion) and interest but about $355 million of the authorized bonds and the state's intercity- rail service. These have been spent on projects. improvements would . include purchasing ($19.0 billion) costs of the bonds. Payments of about $1.3 billion per year. • Additional unknown state and local government costs to operate and maintain transportation In addition to state funds, California's buses .and railcars, as well as making safety infrastructure (such as roads, bridges, and buses and railcars) funded with bonds. A portion of these transportation system receives federal and local enhancements to existing transit facilities, costs would be offset by revenues generated by the improvements, such as fares and tolls. money. The state receives about $4.5 billion Goods Movement and Air Quality—$3.2 a year in federal gasoline and diesel fuel tax billion—for projects to improve the movement of revenues for various transportation purposes. goods—through the ports; on the state highway . FINAL VOTES CAST BY THE LEGISLATURE ON SB 1266 (PROPOSITION 1 B) Collectively, local governments invest roughly and rail systems, and between California and Senate: Ayes 37 Noes 1 $9.5 billion annually into California's highways, Mexico—and for projects to improve air quality streets and roads, passenger rail, and transit by reducing emissions related to goods movement Assembly: Ayes 61 Noes 10 systems. This funding comes mainly from a and replacing or retrofitting school buses. mix of local sales and property taxes, as well as Safety and Security—$1.5 billion—for projects transit fares. Local governments have also issued to increase protection against a security threat or ANALYSIS BY THE LEGISLATIVE ANALYST bonds'backed mainly by local sales tax revenues improve disaster response capabilities on transit BACKGROUND There are two primary state tax sources that fund to fund transportation projects. systems; as well as for grants to improve the state transportation programs. First, the states 18 PROPOSAL safety of rail crossings to seismically retrofit local California spends about $20 billion a year from bridges, ramps, and overpasses; and to improve P Y cent per gallon excise tax on gasoline and diesel fuel a combination of state, federal, and local funds to (generally referred to as the gas tax)generates about This measure authorizes the state to sell about security and disaster planning in publicly owned maintain,operate,and improve its highways,streets $3.4 billion annually. Second, revenues from the $20 billion of general obligation bonds to fund ports, harbors, and ferry terminals. . and roads,passenger rail,and transit systems.These state sales tax on gasoline and diesel fuel currently transportation projects to relieve congestion, FISCAL EFFECTS expenditures are primarily funded on apay-as-you- provide about $2 billion a year. Additionally, the improve the movement of goods, improve air go basis from taxes and user fees. state imposes weight fees on commercial vehicles quality, and enhance the,safety and security of the Bond Costs. The costs of these -bonds would transportation system. (See "An Overview of State depend on interest rates in effect at the time they Bond Debt" on page 96 for basic information on are sold and the time period over which they are state general obligation bonds.) repaid. The state would likely make principal and 181 Title and Summary/Analysis*** ***Analysis 1 19 For text of Proposition IB see page 114. - P HIGHWAY SAFETY, TRAFFIC REDUCTION, PROP PROP HIGHWAY SAFETY, TRAFFIC REDUCTION, 1B AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006. AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006. 1B ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) FIGURE 1 interest payments from the state's General Fund Operational Costs. The state and local over a period of about 30 years. If the bonds governments that construct or improve Proposition ' Funds are sold at an average interest rate of 5 percent, transportation infrastructure with these bond funds Amount the cost would be about $38.9 billion to pay off (by, for example, building roads and bridges or (In Millions) I both the principal ($19.9 billion) and interest purchasing buses or railcars) will incur unknown Congestion Reduction, Highway and Local Road Improvements $11,250 ($19.0 billion). The average repayment for additional costs to operate and maintain them. A principal and interest would be about $1.3 billion portion of these costs would be offset by revenues Reduce congestion on state highways and.major access routes $4,500 per year. generated by the improvements, such as transit Increase highways, roads, and transit capacity 2,000 fares and tolls. Improve local roads 2,000 Enhance State Route 99 capacity, safety, and operations 1,000 I Provide grants for locally funded transportation projects 11000 Rehabilitate and improve operation of state highways and local roads 750 S Public Transportation $4,000 Improve local rail and transit services, including purchasing vehicles and right of way $3,600 Improve intercity rail, including purchasing railcars and locomotives 400 Goods Movement and Air Quality $3,20,0 Improve.movement of goods on state highways and rail system, and in ports $2,000 . Reduce emissions from goods movement activities 1,000 Retrofit and replace school buses 200 Safety and Security $1,475 Improve security and facilitate disaster response of transit systems $1,000 Provide grants to improve railroad crossing safety 250 Provide grants to seismically retrofit local bridges and overpasses 125 Provide grants.to improve security and disaster planning in publicly owned ports, harbors, and ferry facilities 100 Total $19,925 II . 20 1 Analysis*** 1 For text of Proposition 1B see page 114. ***Analysis 121 I P PROP HIGHWAY SAFETY, TRAFFIC REDUCTION, HIGHWAY SAFETY, TRAFFIC REDUCTION, PROP 1B AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006. * * * * * *AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006. 1B ARGUMENT , 1 OF PROPOSITION PROPOSITIO N 1B YES ON PROPOSITION 1B: BUILD NEW ROADS help reduce car emissions—one of the leading sources of air, $32 billion. That is what our children and grandchildren voter approval of this measure,the California Transportation AND HIGHWAYS NOW pollution. will pay to settle the debt associated with this bond. All this Commission is required to "develop and adopt guidelines" California has the most congested highways in the YES ON 1B: STRICT ACCOUNTABILITY AND NO for funding costly programs at the expense of desperately to fund all outlined transportation programs and spend nation—we spend 500,000 hours stuck in traffic every day. NEW TAXES needed highway construction. billions of your hard-earned tax dollars. Then CALTRANS It's clear that the time to rebuild California's roads,highways, Prop. 1B includes important accountability measures like Make no mistake: every Member of the Legislature who and your regional and county transportation agencies must and transportation systems is now. annual audits and reports to ensure funds are spent on voted against this bond measure supports restoring our submit all potential transportation projects to the California Proposition 1B puts backlogged transportation projects on intended projects. state's crumbling transportation system.. We support Transportation Commission.Just think: A state government the fast track, reducing congestion and improving highway Prop. 113 lets us begin building roads now and pay for dedicating every dollar you pay in gas taxes to our highways. agency must put rules in place to spend billions of dollars in safety. them as we use them—with current tax revenues and And, we support building for California's future wisely. just 3 weeks on projects across California without allowing While Prop. I protects the gas tax funds we already pay without raising taxes.It is like a mortgage on a house that However,this measure fails to achieve these important goals enough time for public oversight and review. Is this the best at the pump,Prop. I•B is just as important because it provides lets you live in your home while you pay for it. in a fiscally responsible manner. way to spend your tax dollars? funding now to jump-start repairs of our aging highways and YES ON 1B: PART OF A LONG-TERM PLAN TO Improved transportation is a critical issue for our state,but Significant fiscal decisions in Government should not be to start building the transportation projects we know we'll REBUILD CALIFORNIA equally important is that each additional borrowed dollar we made without adequate time for due diligence and analysis. need in the future. Proposition 1B is part of the Rebuild California Plan, spend worsens our budget deficit and could cause significant Governor 'Schwarzenegger is right; California state YES ON IB IMPROVES SAFETY, REDUCES which uses the taxes we're already paying to build the roads, consequences for hard-working California families. government has neglected the transportation needs of our CONGESTION,AND EXPANDS PUBLIC TRANSPORTATION housing, schools, and water systems we need to sustain our ! A fiscally responsible solution would be a"pay as you go" State for three decades and something needs to be done.But Proposition 1B will fund projects in every corner of the economy and our quality of life for the long term. approach to, funding much-needed transportation projects. let's do this right. Let's go back to the drawing board and state. Prop. 1B invests in: REBUILD CALIFORNIA: YES ON IA, 113, 1C, 1D, This approach will pay for infrastructure improvements from find a responsible way to focus on critically needed projects • Making safety improvements, to the most dangerous and lE the general fund(taxes you already pay)and allow California while at the same time developing a financially accountable highways and corridors California's population will reach 50 million in the next 20 to borrow less money to meet its annual obligations. plan that includes a "pay as you go" element, without any • Reducing congestion and travel delays years—twice what our current infrastructure was designed By setting aside a portion of the budget each year for wasteful spending to pay for these important projects. • Adding more lanes to congested highways for—and it can't be rebuilt overnight. That's why we've got j infrastructure, we will be able to better meet our state's We should demand that our children and grandchildren • Fixing local streets,roads,and intersections to start now. complex needs and not saddle our children and grandchildren have a transportation system that meets the needs of the • Building and expanding public transportation To learn more about how this infrastructure plan will benefit with backbreaking debt. 21 st Century. That's why you need to vote "no" on this • Making bridges seismically safe bond and force the Legislature to produce a transportation you and your community,visit www.ReadForYourselforg. Of further concern in this measure is the rush to spend g p p • Expanding carpool lanes YES ON 1B:SAFER ROADS,LESS POLLUTION,AND our tax dollars. In hastily passing this bond measure, infrastructure plan.for our future that is responsible,realistic, • Providing matching funds for communities that have REDUCED TRAFFIC CONGESTION the Legislature failed to include time and cost saving and result driven. approved local transportation measures opportunities such as "Design-Build". and environmental YES ON 1B WILL REDUCE AIR POLLUTION AND MARIAN BERGESON,Chair IMPROVE AIR QUALITY California Transportation Commission permitting reforms that would have streamlined the MICHAEL N.VILLINES, CaliforniState Assemblyman construction process, completing more projects with the 29th District Prop. 1B includes, funding to reduce air pollution by ALAN C. LLOYD,Former Chair ;i� same amount of money. Additionally, within 3 weeks after replacing old polluting school buses, expanding mass transit, California Air Resources.Board and expanding carpool and HOV lanes. And, by reducing ALLAN ZAREMBERG, President congestion on our freeways and roads, Prop. 1B will also California Chamber of Commerce REBUTTAL 1 , FAVOR 1 PROPOSITION 1B REBUTTAL T1 ARGUMENT AGAINST PROPOSITION We've all heard, "some things are too good to be true." When was the last time an audit of state government Even the opponent agrees we,have to start now to improve • Just like a mortgage on a home, Prop. 1B allows us to The argument in support of Proposition 1B is clearly one of spending showed that its programs were cost effective our state's crumbling transportation system, build new improve our transportation system now and pay for it as those times. and timely? Quite the opposite is true. A well i roads, and relieve traffic congestion. That's exactly what we use it over the long term. Instead of envisioning a home mortgage being paid thought out plan for our transportation needs is '.the Proposition 1B will do. • That's why THE CALIFORNIA TAXPAYERS' for while you live in it, as the proponents would have you only sensible way to improve California's roadways. YES ON 1B will finally make our transportation system ASSOCIATION SUPPORTS IB. imagine, envision instead drowning in a sea of credit card A hastily developed bond, with "after the fact" oversight, a priority and provide funds we need to begin addressing the Yes on 1B is part of the Rebuild California Plan. Our debt. That's where California is headed. containing billions of dollars in borrowing is a recipe for backlog of projects throughout the state to reduce congestion, economic future and our quality of life depend on a reliable We all want better roads and less traffic congestion. failure. improve air quality, expand mass transit, make road safety transportation system that moves goods and people efficiently. However, if the Legislature turned its attention to Make no mistake;a bond is not free money.You will pay improvements,and repair local streets and roads.The longer we We've got to start now. streamlining construction projects and easing over- for the considerable borrowing with substantial interest.NO neglect our transportation system,the more costly and serious YES on IB. Build new roads and, highways, invest in burdensome regulations,we wouldn't need to borrow billions on 1B will force the Legislature to. develop a responsible the problems become.We can't afford to wait any longer. traffic safety,relieve congestion,and improve mass transit. of dollars. Instead, we would use an annual portion of our bond package by including "pay as you go," environmental PROPOSITION 1B IS FISCALLY RESPONSIBLE general fund tax dollars with limited borrowing to complete permitting reform, design-build efficiencies, and other • 1B contains strict fiscal safeguards to protect taxpayers,- LARRY MCCARTHY,President these projects. This balanced approach would significantly common sense reforms. like annual audits and public reports to show how and California Taxpayers' Association reduce our need to borrow billions of dollars. where funds are spent. THOMAS V. MCKERNAN,President What about accountability and audits? MICHAEL N. VILLINES,California State Assemblyman • By issuing bonds, Prop. 1B will provide immediate Automobile Club of Southern California(AAA) 29th District funding to jump-start transportation projects and allow MICHAEL BROWN,Commissioner us to pay for them over the next 20 years, with existing state revenues and without raising taxes. California Highway Patrol 22 1 Arguments Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. . ***Arguments 123 f PROPOSITION HOUSING AND EMERGENCY SHELTER ( HOUSING AND EMERGENCY SHELTER PROP f TRUST FUND ACT OF 2006. 1 TRUST FUND ACT OF 2006. 1C 1c , OFFICIAL TITLE AND SUMMARY* * * Prepared by the Attorney General * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) PROPOSAL must reserve 'a portion of its units for low- HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2006. income households for a period of 55 years. This measure authorizes the state to sell $2.85 This measure gives funding priority to projects • Funds maybe used-for the purpose of providing shelters for battered women and their children, clean g g p Y p � and safe housing for low-income senior citizens; homeownership assistance for the disabled, military billion of general obligation bonds to fund 13 new in already developed areas and near existing veterans and workingfamilies; and repairs and accessibility improvements to apartment for families and existing housing and development programs. public services such as public transportation), p Y P P p ( p and disabled citizens. (See"An Overview of State Bond Debt"on page 96 Other Housing Programs ($285 Million). • The state.shall issue bonds totaling two billion eight hundred fifty million dollars ($2,850,000,000) for basic information on state general obligation These funds would be used to provide loans and paid from existing state funds at an average annual cost of two hundred and four million dollars bonds.) Figure 1 (see next page) describes the grants to the developers of homeless shelters ($204,000,000)per year over the 30 year life of the bonds. programs and the amount of funding that each and housing for farmworkers. In addition, funds ; • Requires reporting and publication of annual independent audited reports showing use of funds, and would receive under the measure. About one-half would be allocated to pilot projects aimed at limits administration and overhead costs. of the funds would go to existing state housing reducing the costs of affordable housing. • Appropriates money from theGeneral Fund to.pay off bonds. programs. The development programs, however, are new—with details to be established by the The funds would be allocated over a number Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: Legislature. The major allocations of the bond of years. The measure provides the Legislature ' g broad authority to make future changes to these • State cost of about $6.1 billion over 30 ears to a off both theprincipal $2.85 billion and,interest proceeds are as follows: Y pay ( ) programs to ensure their effectiveness. costs ($3.3 billion) on the bonds. Payments of about $204 million per year. Development Programs ($1.35 Billion). The measure would fund three new programs aimed at FISCAL EFFECT increasing development.Most of the funds would FINAL VOTES CAST BY THE LEGISLATURE ON SB 1689 (PROPOSITION 1 C) be targeted for development projects in existing Bond Costs. The cost to pay off these bonds urban areas and near public transportation. The would depend primarily on the following two Senate: Ayes 27 Noes 11. ! programs would provide loans and grants for a factors: y Assembly: Ayes 54 Noes 16 wide variety of projects, such as parks, water, payment Period. The state would likely make I sewage, transportation, and housing. principal and interest payments on the bonds ANALYSIS BY THE LEGISLATIVE ANALYST Homeownership Programs ($625 Million). A from the state's General Fund over a period of number of the programs funded by this measure about 30 years. BACKGROUND While the state provides financial assistance would encourage homeownership for low- and Interest Rate. Usually, the interest on bonds moderate-income homebuyers.The funds would issued is exempt from both state and federal through these programs, cities and counties are P About 200,000 houses and apartments are built responsible for the zoning and approval of new be used to provide downpayment assistance taxes because the bonds are for public purposes. in California each year.Most of these housing units to homebuyers through low-interest loans or This results in lower, debt service payments are built entirely with private dollars. Some units, housing. In addition, cities, counties, and other grants. Typically, eligibility for this assistance for the state. Some programs proposed by however, receive subsidies from federal, state, and local governments are responsible for providing would be based on the household's income, the this measure, however, would not be eligible local governments. For instance, the state provides infrastructure-related services to new housing— cost of the home being purchased, and whether for the federal tax exemption—resulting in a low-interest loans or grants to developers (private, such as water, sewer, roads, and parks. it is the household's first home purchase. higher interest rate.This is because the housing nonprofit, and' overnmental to subsidize housing Multifamily HousingPrograms($590Million). programs provide funds for private purposes. p g ) g In 2002, voters approved Proposition 46,,which I We estimate this would .be the case for about construction costs. Typically, the housing must be The measure also would fund programs aimed at sold or rented to Californians with low incomes. provided a total of$2.1 billion of general obligation the construction or renovation of rental housing 60 percent of the bonds.) i Other state programs provide homebuyers with bonds to fund state housing programs.We estimate I projects, such as apartment buildings. These If the federally taxable bonds were sold at an that about$350 million of the Proposition 46 funds programs generally provide local governments, average rate of 6.5 percent and the remaining direct financial assistance to help with the costs of nonprofit organizations, and private developers bonds at an average rate of 5 percent, the cost to a downpayment. will be unspent as of November 1, 2006. with low-interest (3 percent) loans to fund part the state would be about $6.1 billion to pay off I of the construction cost. In exchange, a project both the principal ($2.85 billion) and the interest _ I+ 241 .Title and Summary/Analysis*** I ***Analysis 125 For text of Proposition IC seepage 118. i PROP HOUSING AND EMERGENCY SHELTER HOUSING AND EMERGENCY SHELTER PROP 1C TRUST FUND ACT OF 2006. TRUST FUND ACT OF 2006. 1C ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * *ANALYSIS BY.THE LEGISLATIVE ANALYST (CONTINUED) FIGURE 1 ($3.3 billion).The average payment would be about various housing and urban development programs. -Proposition 4113: Usesof Bond Funds $204 million each year. A portion of the programs' allocations—probably Administrative Costs. The Department of between $100 million and $150 million of the Amount g p total bond funds—would be used to a these • (In Millions) Housing and Community Development and pay- Development Programs the California Housing Finance Agency would administrative costs over time. experience increased costs to administer the Development in Grants for various projects—including parks, water, sewer, transportation, $850 urban areas, "and environmental cleanup—to facilitate urban "infill" development. Development near 'Grants and loans to local governments and developers to encourage more 300 public transportation, dense development near public transportation. Parks, Grant funding for parks throughout the state. 200 $1,350 Homeownership Programs r Low-income households Variety of homeownership programs for low-income households. $290 r ' I Downpayment assistance Deferred low-interest loans up to 6 percent of home purchase 200 price for first-time low-or moderate-income homebuyers. Local governments Grants to local governments which reduce barriers to affordable housing. 125 Funds would be used for homebuyer assistance. Self-help construction Grants to organizations which assist low-or moderate-income households 10 in building or renovating their own homes. ° $625 Multifamily Housing Programs Multifamily housing Low-interest loans for housing developments for low-income renters. $345 Supportive housing Low-interest loans for housing projects which also provide health and 195 social services to low-income renters. i i Homeless youth Low-interest loans for housing projects which provide housing for 50 homeless young people. $590 Other Housing Programs Farmworker housing Low-interest loans and grants for developing housing for farmworkers. $135 Pilot programs, Grants and loans for pilot projects to develop housing at reduced costs. 100 Homeless shelters Grants for developing homeless shelters. 50 $285 ,New program. 26 I Analysis Analysis 127 For text of Proposition I C see page 118. 1 PROP .HOUSING AND EMERGENCY SHELTER HOUSING AND EMERGENCY SHELTER PROP 1C TRUST FUND ACT OF 2006.* * * * TRUST FUND ACT OF 2006. 1C ARGUMENT IN , . , PROPOSITION AGAINST 1 YES on Proposition 1C will provide emergency shelters for Independent Audits and Accountability: Proposition 1C would add almost $3 billion in new only for the lucky few who can get their hands on your battered women, affordable homes for seniors and low-income "This measure requires independent audits, limits government debt and expand bureaucracy,but it won't make money. families, and shelters with social services for homeless administrative expenses, and contains strict accountability housing affordable in California. The true way -to make housing affordable again in families with kids. That is why Habitat for Humanity,AARP, provisions to ensure the funds are used as promised." t allow builders to build homes and P Sacramento politicians laced Proposition 1C on the ballot. California is o a o de s and California Partnershipto End Domestic Violence strongly p p p g Y —California Chamber of Commerce 'n themorning. Wh did the vote in the middle of the condominiums and apartments and then allow people to a at ty y p p p pay urge you to vote YES on Proposition 1C. Helps F • " °Foster Youth. "Tragically,, 65/o of foster youth are r they t live in them—without the overnment telling everyone P with debate and no oversight? What were e o Importantly,this measure will be funded out of existingstate g Y Y night little d g y g g Y homeless on the day they leave foster care. Proposition 1C will trying to hide? what to do and how to do it. resources without raising taxes. help them find stable homes. —Homes 4 California Proposition 1C won't make housing more affordable for Instead, the text of Proposition 1C reads like the failed Many of our communities face severe problems of housing Critical Need for Housing and Emergency Shelters: the average Californian.What it will do is grow government government housing programs of the past with references affordability, homelessness, and domestic violence. Over "Proposition 1C provides shelter for those who need help the and force the average California family of four to pay over to, "target population," "Housing Finance Committee," 360,000 Californians are homeless every night. most—battered women, homeless families with children, and Last year,5,108 women and children were turned away from disabled seniors:'—Habitat for Humanity,Sacramento $600 in debt and interest while INCREASING PRESSURE "supportive housing," "operating subsidies," and "pilot domestic violence shelters because the were full. Housing TO RAISE TAXES. programs. Along with millions of dollars for bureaucracy Y g Yes on 1C: Part of a Long-Term Plan to Rebuild What will $2.85 billion of new government borrowing and even$400 million for parks that house no one at all! affordability for working families in California is at historic California « lows. buy. In a state of 37 million people with over 12.2 million One last reason to vote no on Proposition 1C: we can't Proposition 1C is part of the Rebpiid California Plan,which housing units, not even a drop in the bucket. Instead, afford more debt. For every dollar we borrow, we and our Safe shelter is fundamental to a decent life. YES on uses the taxes we're already paying to build the roads,housing, Proposition 1C will: Proposition 1C will empower bureaucrats to dispense cash children will have to repay that dollar plus a dollar in interest schools,and water systems we need to sustain our economy and to a select few who meet the government rules and are lucky costs.That means the average California family will have to • Expand the number of shelter beds for battered women and our quality of life for the long term. Please support the long- enough to be chosen to get the money borrowed in your pay more than $600 in'additional taxes over the life of this homeless families with children. term plan to rebuild California by voting Yes on IA, 113, 1C,.1D, name. bond, half of which will be to pay the roughly $3 billion in • Provide housing for homeless foster youths. and lE. • Make security improvements and repairs to existing shelters. To learn more about how this plan will benefit you and our It's true that only 14 percent of families in California interest fees alone. • P .Y Y can now afford the median-priced home. But, government Vote "no" on'Proposition 1C. We can't afford it, and it Provide clean and safe homes for senior citizens and low- community,visit www.ReadForYourselforg. itself is to blame for this problem. More than half the cost won't make housing more affordable in California. income families. p $ ff Proposition 1C provides shelters for our most vulnerable of a home or apartment rent in California is due to high For more information, please visit Assemblyman Chuck Additionally, Proposition 1C helps working families afford Californians: the elderly, disabled, homeless families,battered homes and provides accessibility improvements to apartments taxes, overregulation, environmental lawsuits, fees, and DeVore's website at: www.NoProplC.com or email him at ' 4 P Y p P women and children. Please vote Yes on 1C for emergency government interference in the free market—all of which NoProplC@aol.com. for disabled Californians. shelter and housing relief without raising taxes. doubles the high cost of housing. Proposition 1C also creates 87,000 jobs and helps improve the state's economy. So, what do the politicians propose? Their solution: ASSEMBLYMAN CHUCK DEVORE,Memberssem fl CHERYL KEENAN,Executive Director another government program that allows affordable housing California State Assembly Allows Seniors to Live Independently:This measure allows San Diego Habitat for Humanity _ Y ' seniors to live at home without the fear of being institutionalized MARIVIC MABANAG,Executive Director r in a nursing home. - , Helps Battered Women: "Most cities in California don't California Partnership to End Domestic Violence have adequate shelters for women and children who have TOM PORTER, State Director been beaten and abused. Proposition 1C begins to fix this AARP bad situation."—California State Sheriffs Association REBUTTALTO ARGUMENT 1 ' OF "PROPOSITION 1C REBU , O ARGUMENT AGAIN I ST PROPOSITION Proposition 1C is fiscally irresponsible.1C grows bureaucracy Builders build homes,not government.Fees,regulations, Yes on Proposition 1C makes shelters and homes available Orange County Business Council with almost$3 billion in borrowed money,burdening everyone and government interference make homes'unaffordable in to battered women, seniors, homeless children, low-income League of Women'Voters with debt to benefit a small number of people selected by California. Freeing builders to build is the best affordable families,and former foster youths. It won't solve all of these Foster Youth Alliance government,including financially eligible illegal immigrants. housing program—and, it costs nothing! problems overnight,but it is an important step forward. Vietnam Veterans of California In their"yes"argument, 1C's backers claim the bond would Adding more debt to our state's credit card hurts ALL Proposition 1C will not raise taxes. The measure will be Proposition 1C is a fiscally responsible part of the Rebuild be"funded out-of existing state resources without raising taxes." Californians. Proposition 1C would add $600 of debt and paid for out of existing state resources. Just as important, California Plan,a long-term plan to build the roads,housing, Sadly,there is no such thing as free money. interest payment obligations on every California family of Proposition 1C requires independent audits to protect schools, and flood-control systems we need for California's When California sells bonds,what is really happening is that four. That's $600 that could be returned to the people in taxpayers and ensure shelters and homes are 'built as future. the state is going into debt in your name. This debt gets repaid lower taxes,or spent on roads and schools. promised.P Yes on Proposition 1C addresses problems we can't afford at about two dollars of principal and interest for every dollar Be responsible:vote"no." This measure is the result of years of planning by experts to ignore. It will provide clean and safe accommodations for borrowed. in the problems of homelessness and domestic violence as p � seniors,shelters for homeless families,and secure homes for , Debt repayment has the top priority in government ASSEMBLYMAN CHUCK DEVORE,Member well as the housing crisis facing the elderly, families with battered women. Please help California take a positive step spending.So,money spent to repay bonds means budget cuts Assembly Budget Committee children,people with mental illness,and veterans. forward by voting Yes on Proposition 1C. for education, roads, Medi-Cal, levee repair, prisons, and BILL LEONARD Member That is why leading California organizations have , water projects.Or,even less money for tax cuts. endorsed Proposition 1C,including: HANK LACAYO,President More debt = less money for priorities. And, less money for California State Board of Equalization Habitat for Humanity,San Diego,Greater Los Angeles, Congress of California Seniors priorities=pressure to raise taxes on all Californians. MIKE SPENCE,President and Sacramento PETER CAMERON,President Debt should be used sparingly to build long lasting projects California Taxpayer Protection Committee AARP Vietnam Veterans of California such as roads,bridges,dams,schools,and universities. Congress of California Seniors MARIVIC MABANAG,Executive Director California Partnership to End Domestic Violence California Chamber of Commerce California Partnership to End Domestic Violence 281 Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.- Arguments printed on this page ar'e the opinions of the authors and have not been checked for accuracy by any official agency. ***Arguments'l 29 TABLE OF. CONTENTS * * * PAGE O I QUICK REFERENCE PULL-OUT GUIDE/BALLOT MEASURE SUMMARIES 5 SECRETARY OF STATIE y I PROPOSITIONS J ' I IA Transportation Funding Protection. Legislative Constitutional Amendment. 14 I cq L►F 0 RV%' I 1B Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. 18 I i 1C Housing and Emergency Shelter Trust Fund Act of 2006. 24 Dear California Voter, I i 1D Kindergarten—University Public Education Facilities Bond Act of 2006. 30 There is no greater right than the right to vote—to participate in the electoral process, I 1 E Disaster Preparedness and Flood Prevention Bond.Act of 2006. 36 i to elect responsible leaders, and to make your voice heard. As the general election nears, Sex Offenders. Sexually Violent Predators. 42 83 Punishment, Residence.Restrictions and Monitoring. Initiative Statute. I urge you to exercise this fundamental right on Tuesday,November 7th. 8Water Quality, Safety and Supply. Flood Control. Natural Resource Protection. 48 4 Park Improvements. Bonds. Initiative Statute. In this Voter Information Guide, you will find information to assist you in making Waiting Period and Parental Notification Before Termination of Minor's Pregnancy. 54 informed choices on Election Day. Impartial analyses, arguments in favor and against 85 Initiative Constitutional Amendment. thirteen measures, statements from candidates, and other useful information is presented 86 Tax on Cigarettes. Initiative Constitutional Amendment and Statute. 60 here as your one-stop educational point of reference. These materials are also available 8,7 Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. 70 .Initiative Constitutional Amendment and Statute. on the Secretary of State's website at www.ss.ca.goy. The website also provides a link to 88 -Education Funding. Real Property Parcel Tax. Initiative Constitutional Amendment and Statute. 76 campaign finance disclosure information(http://cal-access.ss.ca.gov)so you can learn who 89 Political Campaigns. Public Financing. Corporate Tax Increase. Campaign Contribution and 82 is funding each of the campaigns. Expenditure Limits. Initiative Statute. 90 Government Acquisition, Regulation of Private Property. Initiative Constitutional Amendment. 90 To prepare for Election Day,'please carefully review'the material in this Voter AN OVERVIEW OF STATE BOND DEBT 96 Information Guide: As a registered voter, you have the opportunity to further strengthen LIST OF CANDIDATES FOR STATEWIDE ELECTIVE OFFICE 98 the foundation of our democracy by exercising your right to vote. CANDIDATE STATEMENTS 100 Please let my office or your local elections official know if you have questions, ideas, BOARD OF EQUALIZATION DISTRICTS 112 or concerns about registering to vote or voting. To contact the office of the Secretary of JUSTICES OF THE SUPREME AND APELLATE COURTS 113 ' TEXT OF PROPOSED LAWS 114 State, call our toll-free number-1-8 00-345 VOTE or visit our website at www.ss.ca.gov to ' VOTER BILL OF RIGHTS 191 . find contact information for your local elections official. INFORMATION PAGES • Your Vote Makes A Difference....:............................................................................................4 Thank you for being a part of California's future by casting your vote in the November 7th 0 Ballot Measures Defined......................................................................................................13 • The Process of Voting Absentee .............I...........................................................................190 General Election. I Should any candidate or ballot measure information be incorrect or change after the printing of this Voter Information Guide, please rely on the information provided in the Sample Ballot provided by your county elections official. **Table of Contents 13 YOURVOTE MAKES A DIFFERENCE! CALIFORNIA j FOLLOW THESE 3 SIMPLE STEPS OF VOTING QUICK REFEREN.CE REGISTER If you are a United States citizen, a resident of California; not in prison or on parole for conviction i of a felony, and will be 18 years of age by November 7,•2006, you can register to vote. To register to PULL-OUT GUI'DE * vote, you can: •. Call or visit your county elections office. i • i • Call the Secretary of State's Toll-Free Voter Hotline at 1-800-345-VOTE. • Register online at www.ss.ca.gov/elections/elections_vr.htm. i i Your completed registration form should be received by your county elections office at least 15 days before the election (October 23, 2006). LEARN There are several ways you can learn about candidates and ballot measures. • Your County Sample Ballot provides the location of your polling place, polling place hours, who your local and state legislative candidates are, how to apply for an absentee ballot, and I ` how to use the voting equipment in your county. i • The State Voter Information Guide provides the information you need to know about statewide candidates and ballot measures. An audio version is available for the visually impaired i by calling 1-800-345-VOTE. The State Voter Information Guide is also available online at www.voterguide.ss.ca.gov. Tuesday, NOVEMBER 7 2,00.6• Cal-Access is an.online tool which provides information on who is contributing campaign funds to support or oppose statewide candidates and ballot measures. Go online at www.cal-access.ss.ca.gov for more information. GENERAL ELECTION i � ' • Talk with Family and Friends because the decisions you make in the voting booth are important This pull-out reference,guide contains summary and contact information and help keep our country strong. for each state proposition appearing on the November 7, 2006 ballot. VOTE *** • - pL OF TfY Election Day is Tuesday,November 7,2006.The polls are-open from 7:00 a.m. to 8:00 p.m. EUREKA' • F • Find Your Polling Place—The location of your polling place is provided on the back of your PULL OUT THIS GUIDE AND county sample ballot. You can also find your polling place by calling your county elections = o office or online at htt ://www.ss.ca. ov/elections/elections l.htm. TAKE IT WITH YOU o r p g _pp ; • To Vdte by Mail—Your county sample ballot contains an application for an "absentee ballot." TO THE POLLS ! ' In order to receive your absentee ballot-in time to vote, this application must be received Cq C 1 F O RN%P ,i by your county elections office by October 31,2006.In order to be counted,your absentee ballot . must be received by your county elections office no later than 8:00 p.m. on Election Day, November 7, 2006. OFFICIAL VOTER INFORMATION-GUIDE Visit our website at www.ss.ca.gov 4 I Your Vote Makes A Difference! ***Quick Reference Pull-Out Guide 15 *** � � • .......... BALLOT MEASURE SUMMARY BALLOT MEASURE SUMMARY PROP Transportation Funding Protection. PROP Highway Safety,Traffic Reduction,Air PROP Housing and Emergency Shelter Trust Fund PROP Kindergarten—University Public Education 1A. Legislative Constitutional Amendment. 1BQuality,and Port Security Bond Act of 2006. I-CAct of 2006. D Facilities Bond Act of 2006. , SUMMARY Put on the Ballot by the Legislature SUMMARY Put on the Ballot by the Legislature SUMMARY Put on the Ballot by the Legislature SUMMARY Put on the Ballot by the Legislature Protects transportation funding for traffic congestion relief This act makes safety, improvements and repairs to state For the purpose of providing shelters for battered women and This ten billion four hundred sixteen million dollar projects, safety improvements, and local streets and roads. highways, upgrades freeways to reduce congestion, repairs their children, clean and safe housing for low-income senior ($10,416,000,000) bond issue will provide needed funding Prohibits the state sales tax on motor vehicle fuels from being local streets and roads,, upgrades highways along major citizens;homeownership assistance for the disabled,military to relieve public school overcrowding and to repair older used for any purpose other than transportation improvements. transportation corridors, improves seismic safety of local veterans, and working families; and repairs and accessibility schools. It will improve earthquake safety and fund vocational Authorizes loans of these funds only in the case of severe bridges, expands public transit, helps complete the state's improvements to apartment for families and disabled citizens, educational facilities in public schools. Bond fends must be state fiscal hardship. Requires loans of revenues from states network of car pool lanes, reduces air pollution, and the state shall issue bonds totaling two billion eight hundred spent according to strict accountability measures. Funds will sales tax on motor vehicle fuels to be fully repaid within the improves anti-terrorism security at shipping ports by fifty million dollars ($2,850,000,000) paid from .existing also be used to repair and upgrade existing public college three years. Restricts loans to"no more than twice in any providing for a bond issue not to exceed nineteen billion state funds at an average annual cost of two hundred and four and university buildings and to build new classrooms to 10-year period. Fiscal Impact: No revenue effect or cost nine hundred twenty-five million dollars($19,925,000,000). million dollars ($204,000,000) per year over the 30 year life accommodate the growing sttfdent enrollment in the California effects.Increases stability of funding to transportation in 2007 Fiscal Impact: State costs of approximately $38.9 billion of the bonds. Requires reporting and publication of annual Community Colleges, the University of California, and the and thereafter. over 30 years to repay bonds.Additional unknown state and independent audited reports showing use of funds,and limits California State University. Fiscal Impact: State costs of about local operations and maintenance costs. administration and overhead costs. $20.3.billion to pay off both the principal ($10.4 billion) and WHAT YOURVOTE MEANS interest ($9.9 billion) on the bonds. Payments of about $680 WHAT YOUR VOTE MEANS million per year. YES NO A YES vote on this A NO vote on this YES NO WHAT YOUR VOTE MEANS WHAT YOUR VOTE MEANS measure means: The State measure means: The A YES vote on this measure A NO vote on this measure Constitution would specify State Constitution would means:The state could means:The state could YES NO YES NO additional limitations on the not furtherlimit the sell$19.9 billion in general not sell$19.9 billion in A YES vote on this measure A NO vote on this measure A YES vote on this measure A NO vote on this measure state's ability to suspend the state's ability to suspend obligation bonds,for state general obligation bonds, means:The state could sell means: The state could means:The state could means:The state could transfer of gasoline sales tax the transfer of gasoline and local transportation for these purposes. $2.85 billion in,general not sell$2.85 billion in sell$10.4 billion in . not sell$10.4 billion in revenues from the General sales tax revenues. State improvement projects obligation bonds to support general obligation bonds general obligation bonds general obligation bonds Fund to transportation.In law,instead of the State to relieve congestion, a variety of housing and for these purposes. for education facilities for these purposes. addition,all past suspensions Constitution,would specify improve the movement development programs. ($7.3 billion for K-12 school would be required to be when past suspensions of goods,improve air facilities and$3.1 billion for repaid by June 30,2016,at would be repaid. quality,and enhance the higher education facilities). a specified minimum rate of safety and security of the repayment each year. transportation system. ARGUMENTS ARGUMENTS ARGUMENTS ARGUMENTS -PRO CON PRO CON PRO CON YES on Proposition 1C. Vote"no"on Proposition Yes on I makes our school We should make school PRO CON YES on I jump-starts traffic California cannot afford provides emergency shelters 1C.Almost$3 billion in buildings earthquake-safe construction a top priority YES on I dedicates Vote `NO"on Proposition relief,mass transit,and safety to continue borrowing its for battered women,affordable new government debt and and reduces overcrowding for current spending. taxes we already pay at the ]A!Keep Education,health improvements in every corner way intora false sense of homes for seniors and former big bureaucracy won't' in classrooms for students. We cannot afford pump for transportation care,and disaster relief of the state without raising economic security.More foster youths,and shelters make California housing .It updates schools with new $10,416,000,000 in new debt,, improvements like building our State's top priorities. taxes. 113 builds new roads and borrowing means worsening' with social services for affordable.Proposition 1C technology,builds vocational which today's schoolchildren roads,congestion relief,and In hard economic times, transportation improvement budget deficits.A no vote homeless families without gives your money to a select education facilities,and will still be paying back safety repairs. IA closes a "autopilot"budgeting causes projects that enhance mobility will force the Legislature raising taxes.Rebuild few chosen by bureaucrats funds our rapidly growing long after their own children loophole in the law to massive unnecessary cuts and protect our economic to focus on paying for California:Join Habitat for then sticks every California .community college system. have graduated.Most prevent politicians from to schools,firefighters, future.Rebuild California: our transportation needs Humanity,AARP,and CA family of four with$600 Rebuild California:YES on schools will receive nothing . spending gas taxes on other trauma centers,and health YES on 1B—safer roads, with existing funds in a Partnership to End Domestic of debt and interest.Vote 1D—an investment in our from'this bond.Fairness programs.Rebuild California: care.The Governor and reduced congestion,and a fiscally responsible manner. Violence,vote Yes on 1C. "no"on irresponsible debt. children is an investment requires local districts to YES on lA—safer roads, Legislature must have strong economy, Please,vote NO on 1B. in California's future. pay for local projects. reduced congestion, flexibility to meet the www.ReadForYourself org. www.ReadForYourseforg. needs of Californians. Vote, FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION "NO"on Proposition IA. FORADDITIONAL INFORMATION FOR AGAINST Let's Rebuild California FOR AGAINST FOR AGAINST FORADDITIONAL INFORMATION California Taxpayer Let's Rebuild California Assemblyman Chuck DeVore Lance Olson 'Thomas N.Hudson,FOR AGAINST' 1127 llth Street,Suite 950 Protection Committee 1127 11th Street,Suite 950 California State Assembly ,Olson Ha gel&Fishburn LLP Executive Director Let's Rebuild California Jackie Goldberg,Chair Sacramento,CA 95814 Thomas N.Hudson, Sacramento,CA 95814 4790 Irvine Blvd.,Ste. 105-191 555 Capitol Mall#1425 California Taxpayer CA 92620 Sacramento,CA 95814 Protection Committee Irvine, 1401 I 448 916) - ry , 1127 llth Street,Suite 950 Assembly Education - (916)448-1401 Executive Director ( 442 2952 9971 Base Line Road (916)448-1401 www.readforyourself.org Elverta,CA 95626-9411 Sacramento CA 95814 Committee info @readforyourselforg 9971 Base Line Road info@readforyourselforg (916)991-9300 (916) www.readforyourself.org NoProplC@aol.com www.readforyourself.org Elverta,CA 95626-9411 info@readforyourself 916 org (916)991-9300 www.NoPropIC.com ( )991-9300 info@protecttaxpayers.com www.readforyourself.org info@protecttaxpayers.com www.protecttaxpayers.com www.protecttaxpayers.com 6 1 Ballot Measure Summary*** - ***Ballot Measure Summary 17 BALLOT MEASURE SUMMARY* *, * * BALLOT MEASURE SUMMARY i • PROP Disaster Preparedness and PROP Sex Offenders.Sexually Violent Predators. PROP Water Quality,Safety and Supply. PROP Waiting Period and Parental Notification JE83Flood Prevention Bond Act of 2006. Punishment,Residence Restrictions and Q A Flood Control.Natural Resource Protection. C Before Termination of Minor's Pregnancy. Monitoring. Initiative Statute. i j8 4 Park Improvements.Bonds.Initiative Statute. 8J Initiative Constitutional Amendment. SUMMARY Put on the Ballot by the Legislature SUMMARY Put on the Ballot by Petition Signatures, SUMMARY Put on the'Ballot by Petition Signatures SUMMARY Put on the Ballot by Petition Signatures This act rebuilds and repairs California's most vulnerable Increases penalties for violent and habitual sex offenders and I Funds water, flood control, natural resources, park and Amends California Constitution prohibiting abortion for flood'control structures to protect homes and prevent loss of child molesters. Prohibits residence near schools and parks. conservation projects by authorizing $5,388,000,000 in unemancipated minor until 48 hours after physician notifies life from flood-related disasters,including levee failures,flash Requires Global Positioning System monitoring of registered i general obligation bonds. Emergency drinking water safety minor's parent/guardian,except in medical emergency or with floods, and mudslides; it protects California's drinking water sex offenders.Fiscal Impact:Net state operating costs within ten provisions. Fiscal Impact: State cost of $10.5 billion over parental waiver. Mandates reporting requirements. Authorizes supply system by rebuilding delta levees that are vulnerable to years of up to a couple hundred million dollars annually;potential 30 years to repay bonds.Reduced local property tax revenues monetary damages against physicians for violation. Fiscal earthquakes and storms;by authorizing a$4.09 billion dollar one-time state construction costs up to several hundred million of several million dollars annually. Unknown state and local Impact: Potential unknown net state costs of several million bond act.Fiscal Impact:State costs of approximately$8 billion dollars;.unknown net fiscal impact on local governments. operations and maintenance costs,potentially tens of millions dollars annually for health and. social services programs, over 30 years to repay bonds. Reduction in local, property of dollars annually, court administration, and state health agency administration tax"revenues of potentially t1p to several million dollars WHAT YOURVOTE MEANS combined. annually. Additional unknown state and local operations and maintenance costs. YES NO WHAT YOURVOTE MEANS WHATYOURVOTE MEANS WHAT YOUR VOTE MEANS A YES vote on this measure A NO vote on this measure means: Some sex offenders • means:Current sentencing YES NO YES NO YES NO would serve longer prison and and residency laws regarding A YES vote on this measure A NO vote on this measure A YES vote on this A NO vote on this measure parole terms.Sex offenders sex offenders stay in effect. means:The state could means:The state could measure means:The means:Minors would A YES vote on this measure A NO vote on this measure released from prison would State and local agencies would means:The state could means: The state could not be monitored with Global continue to have authority i sell$5.4 billion in general not sell$5.4 billion in State Constitution would continue to receive abortion sell about$4.1 billion in sell about$4.1 billion in Positioning System(GPS) to monitor sex offenders obligation bonds for safe general obligation bonds be changed,to require services to the same extent drinking water,water for these purposes. that a physician notify, as adults.Physicians general obligation bonds general obligation bonds devices while on parole and with GPS devices while quality,and water supply; with certain exceptions, performing abortions for to fund_flood management for these purposes. for life after discharge from on parole and probation. flood control;natural a parent or legal guardian minors would not be subject projects,including repairs state supervision.Registered Requirements for placement resource protection;and of a pregnant minor at to notification requirements. and improvements to levees, sex offenders would not be of sex offenders into the SVP park improvements. least 48 hours before weirs,bypasses, and other allowed to reside within program would not change. performing an abortion. flood control facilities 2,000 feet of a school or park. throughout the state. More sex offenders would be eligible for commitment by the courts to state mental ARGUMENTS ARGUMENTS health facilities for treatment PRO CON PRO CON under the Sexually Violent o ARGUMENTS Predator(SVP)program. Provides clean,safe drinking This bond was placed on the PARENTS. Right now anyone No law can mandate family PRO CON ARGUMENTS water for California's rapidly ballot by special interests that can arrange a secret abortion communication.Vulnerable growing population;supports will likely receive taxpayers' for your minor daughter and , teenagers from abusive, Yes on Proposition 1E protects We cannot afford vital projects for coastal money if the bond passes. you won't even know.Don't violent homes can't talk to against floods and helps $4,090,000,000 in new debt PRO CON protection,water quality,flood This so-called"water and permit your young daughter their parents,.can't navigate ensure an adequate supply, and higher taxes to pay it YES on Proposition 83— Proposition 83 would cost prevention.Accountability,. flood control bond"has no to be subjected to dangerous overcrowded courts,and may of clean drinking water for back. Local projects should JESSICA'S LAW. Prop. 83 taxpayers an estimated public disclosure,annual funding for dams or water medical procedures without resort to dangerous,illegal all Californians. It repairs be funded locally,without gives police the tools they $500 million but would not audits,no new taxes.Join storage and little funding for your knowledge.Keep her life abortions.Prop.85 won't levees and increases flood unfair subsidies.This bond need to keep track of sex increase public safety because League of Women Voters flood control.This initiative and health in your hands and stop predators,won't protect protection. I also helps will not provide any new criminals.Prop.83 stops child it's most restrictive and of California,Clean Water would spend billions without not those of strangers. Vote teens,and is the first step in prevent water pollution in our drinking water.The repairs molesters from moving near a expensive provisions apply to Action,Nature Conservancy, effective oversight. YES on 85. overturning Roe and banning streams and ocean.Rebuild funded by this bond will school or park.Prop. 83 keeps misdemeanor offenders.and business groups,public health all abortions..Vote NO. California:YES on lE—Clean neell to be repaired again sexual predators in prison others convicted of minor, experts,local water districts Water,Flood Protection,and before this bond is repaid. longer.Endorsed by COPS nonviolent offenses.Similar throughout California. Disaster Preparedness. and VICTIMS Vote YES laws have been tried and have on 83. failed in other states.Vote FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION "No"on Proposition 83! FOR AGAINST FOR AGAINST FOR AGAINST FORADDITIONAL INFORMATION ' Fiona Hutton Thomas N.Hudson, Paul E.Laubacher,R.N. Steve Smith Let's Rebuild California Thomas N. Hudson, FOR AGAINST Californians For Clean Executive Director YES on 85/Parents' Right to No on 85—for Real 1127 llth Street, Suite 950 Executive Director Water,Parks and Coastal California Taxpayer Know and Child Protection Teen Safety Campaign for Child Safety Gail Jones,Admin.Director Sacramento,CA 95814 California Tax a er Protection/Yes on Pro 84 9971 Base Line Road San Die Protection Committee 1703 India Street 555 Capitol Mall,Suite 510o, (916)448-1401 Protection Committee 13039 Ventura Blvd. p y 921 llth Street,Suite 400 California Attorneys p� g CA 92101 Sacramento CA 95814 info @readforyourself.orgJ 9971 Base Line Road Sacramento,CA 95814 For Criminal Justice Studio City,CA 91604 Elverta,CA 95626-9411 Toll-Free(866)828-8355 (916)669-4802 info@83YES.com 2225 Eighth Street,Suite 150 9,,16 991-9300 Janet@YESon85.net info@Noon85.com www.readforyourselforg Elverta,CA 95626-9411 (818)784-1222 ( ) @ @ www.83YES.com Sacramento,CA 95814 info@protecttaxpayers.com www.YESon85.net www.Noon85.com (916)991-9300 i Fhutton@ info@protecttaxpayers.com (916)448-8868 i RedgateCommunications.com www•protecttaxpayers.com gailionescacj@sbcglobal.net www.protecttaxpayers.com www.cacJ org www.Yeson84.com 8 1 Ballot Measure Summary*yt* **Ballot Measure Summary 19 BALLOT MEASURE SUMMARY * * * it BALLOT MEASURE, SUMMARY PROP Tax on Cigarettes.Initiative Constitutional PROP Alternative Energy.Research,Production, PROP Education Funding.Real Property Parcel Tax. PROP Political Campaigns.Public Financing. 86 Amendment and Statute. Incentives.Tax on California Oil Producers. Initiative Constitutional Amendment Corporate Tax Increase.Campaign Contribution 87 Initiative Constitutional Amendment and Statute. 88 and Statute. 89 and Expenditure Limits.Initiative Statute. SUMMARY Put on the Ballot by Petition Signatures SUMMARY Put on the Ballot by Petition Signatures SUMMARY Put on the Ballot by Petition Signatures SUMMARY Put on the Ballot by Petition Signatures Imposes additional $2.60, per pack excise tax on cigarettes Establishes $4 billion program to reduce petroleum Imposes $50 tax on each real property parcel to provide Provides that eligible candidates for state elective office may and indirectly increases taxes on other tobacco products. consumption through incentives for alternative energy, additional public school funding for kindergarten through receive public campaign funding.Increases tax on corporations Provides funding for various health programs, children's education and training. Funded by tax on California oil grade 12.Exempts certain elderl disabled homeowners from and financial institutions by 0.2 percent to fund program. health coverage,and tobacco-related programs.Fiscal Impact: producers. Fiscal Impact: State oil tax revenues of $225 tax. Use of funds restricte&to specific educational purposes. Imposes new campaign contribution/expenditure limits.Fiscal Increase in excise tax revenues of about$2.1 billion annually million to $485 million annually for alternative energy Fiscal Impact:State parcel tax revenue of roughly$450 million Impact: Increased revenues (primarily from increased taxes in 2007-08 spent for the specified purposes outlined above. programs totaling $4 billion. State and local revenue annually, allocated to school districts for specified education on corporations and financial institutions) totaling more than Other potentially significant costs and savings for state and reductions up to low tens of millions of dollars annually. programs. $200 million annually to pay for the public financing of local governments due to program changes. political campaigns. WHAT YOUR VOTE MEANS WHATYOURVOTE MEANS WHAT YOURVOTE MEANS WHATYOURVOTE MEANS YES NO YES NO YES NO YES NO A YES vote on this measure A NO vote on this measure A YES vote on this A NO vote on this pleasure A YES vote on this measure A NO vote on this measure A YES vote on this measure A NO vote on this measure means: The existing state means: State excise taxes measure means:The means:The state would not means:The state would means:The state would means:Candidates for state means:Candidates for state excise tax on cigarettes on cigarettes and other state would impose a impose a tax on oil production levy an annual$50 tax not levy an annual$50 tax offices could choose to receive offices would continue to and other tobacco products tobacco products would tax on oil production to fund these activities. on most parcels of land on most parcels of land to public funds to pay for the pay for their campaigns would increase by$2.60 remain at the current level to support$4 billion in in California with the raise additional funding for costs of campaigns if they with private funds subject to per pack to support new of 87 cents per pack and expenditures to develop proceeds allocated to school' K-12 education programs. meet certain requirements. current contribution limits. or expanded programs for would continue to be used and promote alternative districts for five specified Candidates not accepting The tax rate on corporations health services,children's for existing purposes, energy technologies and K-12 education programs. public funds would be and financial institutions .health coverage,and including childhood .promote the reduction subject to lower contribution would not change. tobacco-related activities. development programs of petroleum use. limits than currently.The Other existing programs and various health and tax rate on corporations supported with tobacco tobacco-related programs. and financial institutions excise taxes would continue. ARGUMENTS would be increased to pay ARGUMENTS PRO CON for the public financing of political campaigns. Vote YES on Prop. 87 $4 BILLION oil tax PRO CON and make oil companies increase!HIGHER ARGUMENTS ARGUMENTS °. Proposition 86 reduces Proposition 86 is really pay their fair share for GAS PRICES.HUGE CON smoking and saves lives. about hospitals using our cleaner,cheaper energy.Oil BUREAUCRACY,LACKS PRO ° CON PRO A study by the California Constitution and laws companies pay billions in ACCOUNTABILITY. Proposition 88 wi11 improve The State Legislature decides Proposition 89 will curb Proposition 89 is phoney Department of Health to pocket millions for oil drilling fees in Alaska No requirement they our schools.It helps teachers where your tax money corruption in Sacramento and reform.Prop.89 increases Services says Proposition 86 themselves and HMOs and Texas—but almost produce results. DENIES by providing funds directly to goes.New layers of costly reduce the power of special taxes for politicians to will keep 700,000 kids from through a$2.1 billion nothing in California. REVENUES to SCHOOLS. local schools to reduce class bureaucracy are created. interests and lobbyists over finance their political becoming adult smokers and tax hike. Section 9 Prop. 87 makes oil We need alternative energy, size and provide textbooks 95%+of schools could our government.It will level campaigns and negative ads. prevent 300,000 smoking- even gives hospitals an companies pay and but Proposition,87 is not and learning materials.It NEVER receive facility the playing field and assure The special interests behind related deaths.The same exemption to antitrust makes it illegal to pass the way to get there.CA requires strict accountability grants under Proposition that elections,are about ideas, 89 wrote it to give themselves study says Proposition 86 will laws! It's another lottery the cost to consumers. Taxpayers'Association,small and exempts disabled 88! Proposition 88 creates not money.It will enable an unfair advantage, save over$16 BILLION in mess—and no guarantees business,labor,schools, and elderly homeowners. a NEW KIND OF NEVER everyday people,like teachers, limiting the voice of small health care costs. Yes on 86. on how the money will police,firefighters,farmers, Teachers,businesses,and ENDING PROPERTY nurses and firefighters,to businesses and nonprofits be spent.No on 86. Auto Club say:Vote NO. taxpayers agree:YES on TAX opening the door to run for public office. and damaging consumers. 88 for Textbooks,Smaller UNLIMITED property parcel It's too complicated and FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION unworkable.Vote No on 89. Classes,Better Schools. tax increase propositions. FOR AGAINST FOR AGAINST Proposition 88—NO!, Bob Pence No on 86—Stop the Yes on 87 Californians Against Coalition For A $2 Billion Tax Hike Californians for FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION Health California Higher Taxes—No on 87, Y 3001 Douglas Blvd.#225 Clean Energy a coalition of taxpayers, FOR AGAINST FOR AGAINST 17171 Street Roseville,CA 95661 6399 Wilshire Blvd., educators,schools,public Yes on 88 Taxpayers Californians Against Michael Lighty Californians to Stop 89 Sacramento,CA 95814 (916)218-6640 Suite 1010 safety officials,businesses, for Better Schools and the Statewide Parcel Californians for Clean 1415 L Street,Suite 1250 (916)448-2720 info,@86facts.org Los Angeles,CA 90048 labor,energy producers,@ g gY p Smaller Classes Property Tax Elections,Yes on 89 Sacramento,CA 95814 info@healthycalifornia.com w.86facts.org (323)782-1045 agriculture,and seniors. 1107 9th Street `9125 University Ave. 2000 Franklin Street (916)708-7824 www.yesprop86.com' info@yeson87.com I I I Anza Blvd., Suite 406 Sacramento,CA 95814 Sacramento,CA 95825 Oakland,CA 94612 info@noprop89.org www.yeson87.com Burlingame,CA 94010 (916)448-3868 (916)927-1512 (800)440-6877 www.noprop89.org (650)340-0262 VoteFor88@EdVoice.org info@NoProp88.com info@yeson89.org info@NoOilTax.com wwwVoteFor88.org www.NoProp88.com www.yeson89.org 101 Ballot Measure Summary*** www.NoOilTax'.com *** Ballot Measure Summary 111 BALLOT MEASURE SUMMARY PROP Government Acquisition, 90 Regulation of Private Property. BALLOT MEASURES DEFINED Initiative Constitutional Amendment. SUMMARY Put on the Ballot by Petition Signatures Bars state/local governments from condemning or damaging Legislative Bond Measure private property to promote other private projects,uses. Limits Any bill that calls for the issuance of general obligation bonds must be adopted in each house of government's authority to adopt certain land use, housing, consumer, environmental, workplace laws/regulations. Fiscal the Legislature by atwo-thirds vote, signed by the Governor, and approved by a simple majority of Impact: Increased annual government costs to pay property the public's vote to be enacted. Whenever a bond measure is on a statewide ballot, an overview of owners for losses to their property associated with new laws and California's bond debt is included in the ballot pamphlet. rules,and for property acquisitions. These costs are unknown, but potentially significant on a statewide basis. Legislative Constitutional Amendment WHAT YOUR VOTE MEANS Whenever the Legislature proposes an amendment to the California Constitution, it is 'known as a YES NO ' legislative constitutional amendment. It must be adopted in the Senate and the Assembly by a two- A YES vote on this measure A No vote on this measure thirds vote before it can be placed on the ballot. A legislative constitutional amendment does not means: State and local means:There would be no require the Governor's signature. This type of amendment requires a simple majority of the public's governments would have changes in the requirements vote to be enacted. significantly increased on government for: (1) requirements to compensate paying for economic losses property owners for to property resulting from Legislative Initiative Amendment economic losses to their . new laws and rules and property resulting from (2)taking private property Whenever the Legislature proposes to amend a law that was previously enacted through the initiative new laws or rules.Also, for public purposes. process,the Legislature is required to present the amendment to the voters for,passage.,The Legislature government would be more restricted in taking private may amend the previously-adopted initiative measure if the measure permits legislative amendment or property fo'r public uses. repeal without voter approval.This type of amendment requires a simple majority of the public's vote to be enacted. ARGUMENTS y PRO CON Initiatives Proposifion 90 stops eminent Prop.90 is a deceptive Often .referred to as "direct democracy," the initiative process is the power of the people to place domain abuse and protects and costly taxpayer trap.It measures on the ballot.These measures can either create or change statutes(including general obligation the American Dream-the would create new categories fundamental right of every of lawsuits costing taxpayers bonds) and amend the California Constitution. If the initiative proposes to amend California statute, American to own a home.it billions of dollars every signatures of registered voters gathered must equal in number to 5%of the votes cast for all candidates prevents government from year.It is anti-taxpayer taking your home or property and anti-homeowner.Join for Governor in the previous gubernatorial election. If the initiative proposes to amend the California without your permission and taxpayers,homeowners Constitution, signatures of registered voters gathered must equal in number to 8% of the votes cast turning it over to powerful groups,conservationists, for all candidates for Governor in the previous gubernatorial election. An initiative requires a simple developers who want to police,firefighters,and build strip malls or other businesses.vote No on 90. majority of the public's vote to be enacted, commercial projects. Referendum FORADDITIONAL INFORMATION Referendum is the power of the people to approve or reject statutes adopted by the Legislature. FOR AGAINST However, referenda cannot be used to approve or reject urgency measures or statutes that call for California Protect our No on 90,Californians Homes Coalition Against the Taxpayer Trap elections or provide for tax levies or appropriations for current expenses of the state. Voters wishing 2443 Fair oaks Blvd., 1121 L Street#803 to block implementation of a legislatively-adopted statute must gather signatures of registered voters Suite 191 Sacramento,CA 95814 equal in number to 5% of the votes cast for all candidates for Governor in the previous gubernatorial Sacramento,CA 95825 info@noprop90.com (916)924-7501 wwwNoProp90.com election within 90 days of enactment of the bill. Once on the ballot, the law is defeated if voters cast info@90yes.com more NO votes than YES votes on the referendum question. www.90yes.com 12 1 Ballot Measure Summary Ballot Measures Defined 1 13 o PROPOSITION TRANSPORTATION FUNDING PROTECTION. TRANSPORTATION FUNDING PROTECTION. PROP LEGISLATIVE CONSTITUTIONAL AMENDMENT. LEGISLATIVE CONSTITUTIONAL AMENDMENT. JA OFFICIAL TITLE AND SUMMARY * * * Prepared by the Attorney General * * '* ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) TRANSPORTATION FUNDING PROTECTION. restricts the use of these revenues to specific PROPOSAL LEGISLATIVE CONSTITUTIONAL AMENDMENT. transportation purposes.These include constructing, maintaining, and operating public streets and This measure .amends the State Constitution • Protects transportation funding for traffic congestion relief projects, safety improvements, and local highways, acquiring right of way and constructing to further limit the conditions under which the streets and roads. public transit systems, as well as mitigating the Proposition 42 transfer of gasoline sales *tax • Prohibits the state sales tax on motor vehicle fuels from being used for any purpose other than I revenues for transportation uses can be-suspended. transportation improvements. 1 environmental effects of these facilities. Specifically, the measure requires Proposition 42 • Authorizes loans of these funds only in the case of severe state fiscal hardship. Requires loans I Sales Tax. The state's sales tax on gasoline and suspensions to be treated as loans to the General of revenues from states sales tax on motor vehicle fuels to be fully repaid within the three years. i diesel fuel currently provides about $2 billion Fund that must be repaid in full, including interest, Restricts loans to no more than twice in any 10-year period. a year. Until 2002, most of the revenues from within three years of suspension. Furthermore, the' I the state sales tax on gasoline were not used for'- measure only allows suspension to occur twice in Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: I transportation purposes. Instead, these revenues ten consecutive fiscal years. No suspension could • No direct revenue or cost effects. Increases stability of funding for state and local transportation were used for various general 'purposes including occur unless prior suspensions (excluding those uses in 2007 and thereafter; reduces somewhat the state's authority to use these funds for other, education, health, social services, and corrections. made prior to 2007-08)have been repaid in full. nontransportation priorities. Proposition 42, which was approved by voters in In addition,the measure lays out a new schedule I 2002, amended the State Constitution to dedicate to -repay the Proposition 42 suspensions that most of the revenue from the sales tax on gasoline occurred in 2003-04 and 2004-05. Specifically,the FINAL VOTES CAST BY THE LEGISLATURE ON SCA 7 (PROPOSITION 1 A) to transportation uses. Specifically, Proposition 42 suspended amounts must be repaid and dedicated Senate: Ayes 38 Noes 0 requires those revenues that previously went to the to transportation uses no-later than June 30, 2016, General.Fund be transferred to the Transportation at a specified minimum annual rate of repayment. Assembly: Ayes 58 Noes 11 i Investment Fund to provide for improvements to highways, streets and roads, and transit systems. FISCAL EFFECTS ANALYSIS BY THE LEGISLATIVE ANALYST I Proposition 42, however, allows the transfer to be This measure would have no direct revenue or cost suspended when the state faces fiscal difficulties. effect. B limiting the re and the conditions BACKGROUND Currently, the state levies two types of taxes on Proposition 42 is silent as to whether suspended y g frequency y motor fuels: under which Proposition 42 transfers may be California spends about $20 billion a year to transfer amounts are to be repaid to transportation. • An excise tax of 18 cents per gallon on gasoline suspended in a ten-year period, the measure would maintain, operate, and improve its highways, Since 2002, the state has suspended the make it more difficult to use Proposition 42 gasoline and diesel fuel. (This is generally referred to as I streets and roads, passenger rail, and transit the tax. - Proposition 42 transfer twice because of the sales tax revenues for nontransportation purposes systems. About one-half of the funding comes g )A statewide 6 the sale line state's fiscal condition. In 2003-04, the transfer when the state experiences fiscal difficulties. As a from various local sources' including local sales percent tax on e sae o gasone was.suspended partially, and in 2004-05 the full result, the measure would increase the stability of and diesel fuel ("sales tax"). p g funding to state and local transportation in 2007 and and property taxes, as well as transit fares. The amount of the transfer was suspended. Existing g P Gas Tam Revenues from the state excise tax on law requires that these suspended amounts, with thereafter. However; the state's authority to direct remainder comes from the state and federal levels, � q p available funds to meet other nontransportation largely from gasoline and diesel fuel taxes, and gasoline and diesel fuel used on public roads total interest, be repaid to transportation by 2008-09 truck weight fees. about $3.4 billion per year. The State Constitution and 2007-08, respectively. priorities in the event the state faces fiscal difficulties would be somewhat reduced. t i 14 1 Title and Summary/Analysis ** ***Analysis 115 For text of Proposition 1A seepage 114. 1 PROP TRANSPORTATION FUNDING PROTECTION. TRANSPORTATION FUNDING PROTECTION. PROP ' 1 A LEGISLATIVE CONSTITUTIONAL AMENDMENT. * * * * * * LEGISLATIVE CONSTITUTIONAL AMENDMENT. FAVORARGUMENT IN OF PROPOSITION , ARGUMENT AGAINST PROPOSITION YES ON PROPOSITION IA: USE EXISTING GAS YES ON IA MEANS A STRONGER ECONOMY When the next recession hits, the Legislature and Eyen with about.$2 billion in borrowing from gasoline tax TAXES FOR ROADS AND TRANSPORTATION California's economy depends onafirst-rate transportation the Governor must be able to prioritize both cuts and funds,K-12 public schools still were cut$2 billion from what PROJECTS the were Uaranteed. We also cut funds for textbooks and system (something we used to have). Without a major expenditures. y g g In 2002, California voters made their commitment to emphasis on improving our infrastructure so we can move Proposition IA would put still more of California's budget maintenance of classrooms and school buildings.Community California roads a priority by passing Proposition 42.Voters people and goods throughout the state,our economic future on "automatic pilot" That means that the Governor and college students saw their fees more than double,rising from said they wanted their gas taxes spent on making roads and will suffer. the Legislature won't be able to set priorities. If education, $11 per unit to $26 per unit, and hundreds of thousands of highways safer and less congested. But a loophole in the YES.ON .IA: PART OF A LONG-TERM PLAN TO healthcare, public safety, or childcare funds are in need of community college students had to quit college as a result. law has made,it easy—too easy—for the politicians to use REBUILD CALIFORNIA money, during any recession, the first priority for gasoline University of California and California State University those funds for other purposes.In the last three years,nearly Proposition IA is part of the Rebuild California Plan, taxes will be potholes and highways.Highways and potholes students saw their undergraduate fees rise a whopping 30% $2.5 billion has been siphoned away from road and highway the first comprehensive infrastructure plan in 40 years. The are very important. But on this ballot Proposition 1B will in three years time. projeets—bringing critical safety and congestion relief plan uses the taxes we're already paying to build,the roads, i provide almost$20 billion dollars for Transportation. • We have not repaid the $2 billion cut made to K-12 projects to a halt. housing, schools, and water systems we need to sustain our Proposition 42 of2002 already has strongprotections for education in 2004-05..And, if Proposition ]A had been in YES ON IA STOPS OUR EXISTING GAS TAXES economy and our quality of life for the long-term. highway and pothole funds.Money can only be borrowed by effect, the cut to K-12.public education could have been,$4 FROM BEING USED FOR OTHER PROJECTS REBUILD CALIFORNIA: YES ON IA, 113, 1C, 1D, a 213 vote of both houses and the signature of the Governor. billion! Proposition IA closes the loophole in the law and and lE It must-be repaid and with interest for the full time it was In bad years, the Legislature and the Governor need the ensures that the gas taxes you already pay are spent only California's population will reach 50 million in the next borrowed. Proposition IA tightens the restrictions, and flexibility to shift funds temporarily to ensure that education on transportation projects benefiting California's 20 million 20 years—twice what our current infrastructure was designed makes borrowing almost impossible. receives at least its minimum guarantee. The Legislature drivers. for—and it can't be rebuilt overnight. That's why we've got Everyone seems to agree in California that our number and the Governor need to be able to set priorities as they YES ON I BUILDS NEW ROADS AND HIGHWAYS to start now. one priority is Public Education! But,if Proposition IA were come up.If there is an earthquake,flood,or major fires,or if California currently has the most congested roads in the To learn more about how this infrastructure plan will benefit to pass,that would no longer be true.We only have to look at trauma centers and emergency rooms continue to close, we nation and our streets and highways are in major disrepair. you and your community,visit www.ReadForYourselforg. recent history to understand the impact of Proposition IA. need to be able to address those emergencies. Don't tie the Drivers spend$20.7 billion in extra fuel each year and 500;000 YES ON IA: ENSURE EXISTING GAS TAX DOLLARS In 2003-04,the Legislature and the Governor borrowed hands of those whose job it is to reflect your priorities in the hours stuck in traffic every day because of our overcrowded ARE USED TO IMPROVE CALIFORNINS ROADS, $868 million from the sales tax revenue on gasoline.And in State budget.VOTE"NO"ON PROPOSITION IA! roads.Prop. IA ensures a stable source of long-term funding .HIGHWAYS AND MASS TRANSIT SYSTEMS 2004-05, we again borrowed $1.258 billion from the same to get urgently needed transportation improvement projects funds. Without the ability to borrow money internally, the JACKIE GOLDBERG,Chair, off the drawing board,allowing engineers to: choices would have been to borrow from Wall Street,make Assembly Education Committee THOMAS V. McKERNAN,President • Make traffic safety improvements Automobile Club of Southern California(AAA) massive cuts to health and education,or raise taxes. Repair the most dangerous sections of state highways • Reduce congestion on major freeways MICHAEL BROWN,Commissioner • Widen freeways to prevent bottlenecks California Highway Patrol • Complete our network of carpool lanes MARIAN BERGESON,Chair • Fix neglected streets and roads. California Transportation Commission • Improve public transit REBUTTAL TO ARGUMENT AGAINST PROPOSITION REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1A Proposition IA is about upholding the will of voter's and Prop. IA will not reduce, funding'for education or any Excellent public schools and universities have made You must Vote "NO"on Proposition ]A unless you think setting priorities. In 2002, nearly 70% of voters approved other state program. Education funding is constitutionally j California the "Golden State:' Education is the engine that that emergency rooms, hospitals, and trauma centers will a measure that was supposed to dedicate our gas taxes to protected and Proposition IA does not change that. drives California's economy. never again need to have funding priority. transportation improvements. The voters said building new That's why educators leading taxpayer, environmental, Proposition ]A removes.Education from being the top And, you must Vote "NO"on Proposition ]A unless you roads, relieving congestion, and improving highway safety business;and public safety groups support Prop. IA. budget priority! think it was OK to withhold $2 billion from.the minimum are priorities. Proposition IA is part of the Rebuild California Plan,the The People passed Proposition 42 with exceptions for guarantee to our K-12 schools and to continue to raise Unfortunately, as the opponent points out, politicians first comprehensive infrastructure plan in 40 years. drastic times. It currently takes 213 of the Legislature and student fees at our state colleges and universities. These have been exploiting a loophole in that law.'They've diverted VOTE YES ON IA. Ensure our existing gas tax dollars the Governor to agree to borrow gasoline taxes. terrible cuts to education would have been much worse if I nearly $2.5 billion in gas taxes that were supposed to go to are used to improve California's roads,highways, and mass Some say$2.5 billion has been"siphoned off'the gasoline Proposition ]A had been in effect. transportation ands spent that money on other programs.As a taxes. The borrowed money is being repaid with interest. y, and to make sure that p p y p g transdtsystems. For our children, for our economy, result, our transportation system is badly neglected and the And, the "Rebuild California Plan" will not be affected i we can continue to deal with the aftermath of disasters, Vote ff f we of congestion relief,highway safety,and road repair STEVE KRULL, President Proposition ]A is defeated. "NO"on Proposition IA. projects has grown larger. California Police Chiefs.Association You must Vote "NO"on Proposition IA unless you believe IT'S TIME TO UPHOLD THE WILL OF VOTERS MARK WATTS, Interim Executive Director there will never again be a recession in California. JACKIE GOLDBERG,Chair AND CLOSE THE GAS TAX LOOPHOLE ONCE AND Transportation California You must Vote "NO"on Proposition ]A unless you know Assembly Education Committee , FOR ALL. there will never again be a sizeable earthquake, flood, levee YES ON IA simply makes sure the gas taxes we pay at ALLAN ZAREMBERG, President break, or fire in California that requires a quick response to the pump are actually used to build new roads and improve California Chamber of Commerce save lives and property. our transportation system. 16 I Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. ***Arguments 1 17 ML PROPOSITION KINDERGARTEN—UNIVERSITY PUBLIC EDUCATION KINDEROARTE_ N-UNIVERSITY PUBLIC EDUCATION PROP FACILITIES BOND ACT OF 2006. FACILITIES BOND ACT OF 2006. 1D ID OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) KINDERGARTEN—UNIVERSITY • State General Obligation Bonds. The state has Higher Education Facilities . . funded the SFP by issuing general obligation PUBLIC EDUCATION FACILITIES BOND ACT OF 2006. higher education bonds. Over the past decade, voters have California's system of public • This ten billion four hundred sixteen million dollar($10,416,000,000) bond issue will provide needed approved a total of$28.1 billion in state bonds includes 142 campuses in the three segments listed funding to relieve public school overcrowding and to repair older schools. for K-12 school facilities. Approximately $3 below: • It will improve earthquake safety and fund vocational educational facilities in public schools. Bond billion.of these funds remain available for new The CCCs provide instruction to about 1.5 funds must be spent according to strict accountability measures. construction projects. million students at 109 campuses operated b 72 p J p p Y • Funds will also be used to repair and upgrade existing public college and university buildings and to Local General Obligation Bonds. At the local locally governed districts throughout the state., build new classrooms to accommodate the growing student enrollment in the California Community level,school districts typically meet most of their The community colleges grant associate degrees, Colleges, the University of California, and the California State University. matching requirement and other construction offer a variety of technical career courses, and • Appropriates money from the General Fund to pay off bonds. needs by issuing local general obligation bonds. provide general education coursework that is Y These local bonds can be authorized with the transferable to four-year universities. t Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: approval of 55 percent of the voters in the district. The CSU has 23 campuses, with an enrollment • State costs of about $20.3 billion to pay off both the principal ($10.4 billion) and interest($9.9 billion) The bonds are repaid using local property tax of about 420,000 students. The system grants I (' on the bonds. Payments of about $680 million per year. revenue. Over the past ten years, school districts bachelor degrees, master degrees, and a small have received voter approval to issue more than number of specified doctoral degrees. FINAL VOTES CAST BY THE LEGISLATURE ON AB 127 (PROPOSITION 1 D) $41 billion in local facility bonds. • The UC has nine general campuses, one Although school facilities currently are funded health sciences campus, and various affiliated Senate: Ayes 29 Noes 8 mostly from state and local general obligation institutions, with total enrollment of about bonds,.school districts also receive funds from: 210,000 students. This system offers bachelor, Assembly: Ayes 58 Noes 12 Developer Fees. State law allows school districts master, and doctoral degrees, and is the primary • i, to impose developer fees on new construction. state-supported agency for conducting research. ANALYSIS BY THE LEGISLATIVE ANALYST These fees are levied on new residential, Over the past decade, the voters have approved BACKGROUND is, renovate) existing buildings. A school distracts commercial, and .industrial developments. $6.5 billion in state general obligation bonds for allocation is based �on a formula. The formula Although they contribute a moderate amount capital improvements at public higher education Public education in California consists of considers the number of students a district expects statewide compared to general obligation bond campuses. Virtually all of these funds have been two systems. One system includes about 1,000 to enroll that cannot be served in existing facility proceeds, developer fees vary significantly by committed to specific projects. The state also local school districts that provide education from space.The SFP requires the state and school districts community depending on the amount of local has provided about $1.6 billion in lease-revenue kindergarten through grade 12 (X--12") to about to share the cost of facilities. For new construction development. In fast-growing areas, they can bonds (authorized by the Legislature)for this same 6.3 million students. The other system (commonly projects, the cost is shared equally by the state and make notable contributions to K-12 school purpose. j referred to as "higher education") includes the school districts. For modernization projects, the construction. In addition to -these state bonds, the higher California Community Colleges (CCC), the state pays 60 percent and school districts pay 40 Special Local Bonds (Known as "Mello-Roos" education segments have three other sources of California State University (CSU), and the percent of the cost. If a school district faces unusual fundin for cap ital ro'ects. Bonds). School districts also may form special g p p J University of California (UC). These three higher circumstances,however,it may apply for"hardship" districts to sell bonds for school construction Local General Obligation Bonds. Like K-12 education segments provide education beyond funding from the state to offset its local share of grade 12 to a total of about 2.1 million students. costs. i projects. (A special district generally does not school districts, community college districts are encompass the entire school district.)The bonds, authorized to sell general obligation bonds to K-12 School Facilities Major Funding Sources. As described below, i which require two-thirds voter approval, are finance construction projects with the.approval funding for school facilities comes mostly from paid off by property,owners located within the of 55 percent of the voters in the district. Over Through the School Facility Program (SFP), state and local general obligation bonds. (See "An special district. Over the past decade, Mello- the past decade, community college districts K-12 school districts apply for funding to buy Overview of State Bond Debt"on page 96 for more Roos bonds have provided school districts with have received voter approval to issue more than land, construct new buildings, and modernize (that information on these bonds.) a total of$3.7 billion in facility funding. $15 billion in local facility bonds. 301 Title and Summary/Analysis*** it yt Analysis 131 For text of Proposition ID seepage 120. I PROP KINDERGARTEN—UNIVERSITY PUBLIC EDUCATION KINDERGARTEN—UNIVERSITY PUBLIC EDUCATION PROP 1D FACILITIES BOND ACT OF 2006. FACILITIES BOND ACT OF 2006. 1D ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) • Gifts and Grants. In recent years, CSU and UC FtGURE l a Relief Grants for Overcrowded Schools receive grant funding if their facilities included together have received more than $100 million . , , , � Uses � Bond Funds ($1 Billion). As a condition of receivittg one of designs and materials that promoted the efficient gifts and grants for construction of these grants, school districts would be required to use of energy and water,the maximum use of natural annually facilities. Amount replace portable classrooms with newly constructed lighting, the use of recycled materials, or the use (In Millions) permanent classrooms,remove portable classrooms of acoustics conducive to teaching and learning. • -UC Research Revenue. The UC finances the K-12 from overcrowded school sites,and reduce the total The same local contributions would be required construction of some new research facilities by selling bonds and pledging future research number of portable classrooms within the district. as for other new construction and modernization Modernization projects $3,30oa As with other new construction projects, districts projects. revenue for their repayment. Currently, UC uses would be required to pay 50 percent of project about$130 million a year of research revenue to New construction projects 1,900a,b Joint-Use Projects ($29 Million). These monies a off these bonds. costs.Under the-program definition of overcrowded, would be available for both constructing new facilities pay Severely overcrowded schools 1,000 roughly 1,800 schools(or 20 percent of all schools) and reconfiguring existing facilities for a joint-use PROPOSAL would be eligible for funding. purpose. Joint-use projects include gymnasiums, Charter schools facilities 500 Career Technical Education Facilities ($500 libraries,childcare facilities,and teacher preparation This measure allows the state to sell $10.4 Million). The measure also funds a new facility facilities that are located at a school but used for billion of general obligation bonds for K-12 Career technical facilities 500 joint school/community or K-12/hi her education g g � program designed to enhance educational j tY g school facilities($7.3 billion)and higher education Environment-friendly projects 100 opportunities for students interested in technical purposes. Under such arrangements, the school facilities ($3.1 billion). careers. Grants would be provided to high schools district and joint-use partner share the 50 percent Joint-use projects 29 and local agencies that have career technical local matching requirement. K-12 School Facilities programs. The grants would be allocated on a per Subtotal, K-12 ($7,329) ' As shown in Figure 1, the $7.3 billion for square foot basis, with a maximum of$3 million Higher Education Facilities for each new construction project and$1.5 million K-12 school facilities is designated for seven Higher Education The measure includes$3.1 billion to construct new g for each modernization project. For both types of buildings and related infrastructure,. alter existing types of projects.The underlying requirements and rants the required local contribution would be fundingformulas for four of these project types Community Colleges $1,507 g q , buildings, and purchase equipment for use in these p J Yp 50 percent of project costs. Given the programs buildings for the state higher education segments.As (modernization, new construction-, charter school University of California 890C requirements, approximately 500 school districts facilities and joint-use projects)would be based on Figure 1 shows, the measure allocates $1.5 billion J P j ) (or one-half of all districts) would be eligible for the existingSFP. The other three types of projects California State University 690 to CCC, $890 million-to UC, and $690 million to yp p J new .construction and modernization grants. In CSU.The Governor and Legislature would select the (overcrowded schools, career technical facilities, addition, about 25 local agencies would be eligible Subtotal, Higher Education ($3,os�) specific projects to be funded by the bond monies. and environment-friendly projects) would be new for modernization grants. components of the SFP. Total $10,416 Charter School Facilities ($500 Million). FISCAL EFFECTS Modernization ($3.3 Billion). These monies These monies would be for new construction and would be for the.modernization of existing school a A total of up to$200 million is available from these two amounts combined The costs ofthese bonds would depend on interest as incentive funding to promote the creation of small high Schools. modernization of charter school facilities. (Charter school's are public schools that are exempt from rates in effect at the time they are sold and the time facilities. School districts would be required to pay b Up to$200 million is available for earthquake-related retrofitting. p p period over which they are repaid. The state would 40 percent of project costs (unless they qualify for certain state requirements in exchange for adhering $200 million is available for medical education programs. likely make principal and interest payments from state hardship funding). to a local- or state-approved charter.)A 50 percent 4 local contribution would be required. the state's General Fund over a period of about 30 New Construction ($1.9 Billion). These monies available to retrofit facilities likely to be unsafe years. If the bonds were sold at an average interest would cover various costs associated with building during an earthquake. Districts would be required Environment-Friendly Projects ($100 Million). rate of 5 percent, the cost would be about $20.3 new facilities, including site acquisition, project to pay 50 percent of new construction and These monies would be provided as special incentive billion to pay off both principal ($10.4 billion) and design, engineering, construction and inspection. earthquake-safety projects unless the qualify for grants to promote certain types of environment- interest ($9.9 billion). The average payment would . g , . . . p q Ty p J ( y q friendly facilities. For example, districts could p y y P be about$680 million per year. Up to $200 million.of the $1.9 billion would be state hardship funding). ,1. 32 1 Analysis*** ***Analysis,1 33 For text of proposition 1D seepage 120. PROP KINDERGARTEN-UNIVERSITY KINDERGARTEN-UNIVERSITY PROP 1D PUBLIC EDUCATION FACILITIES BOND ACT OF 2006. * * * PUBLIC EDUCATION FACILITIES BOND ACT OF 2006. 1D ARGUMENT IN FAVOR OF PROPOSITION1 �ARGUMENTXAGAINST1 ' 1 1 1 p VOTE YES ON 1D: WE NEED TO INVEST IN OUR Many students need vocational training instead of college, We Don't Need More Education Spending Now Proposition ID is more borrowing. Why do we have to CHILDREN'S EDUCATION BECAUSE PROVIDING A but our schools do not have up-to-date facilities to provide Proposition 1D is too big. Rather than limiting this bond incur more debt to build and modernize schools? We can QUALITY EDUCATION IS THE BEST THING WE CAN it. 1D will enable schools to provide the career and technical DO TO INVEST IN THEIR FUTURE training many students need to get jobs. measure to the essential needs of building new schools and expand year-round school and better utilize our existing ' 1D provides the funding to make our schools earthquake VOTE YES ON 1D: STRICT ACCOUNTABILITY g this bond funds a variety of new, school facilities.Why can't we fund school construction on a rehabilitating older ones, y safe, reduce overcrowding, update our schools for the latest PROVISIONS e programs basis. untested ro rams such as Career and Technical Education technology, build new facilities for vocational education; Every dollar must be strictly.accounted for on a project- facilities, Overcrowding Relief Grants, seismic safety Proposition 1D is too costly. It is a$10.4 billion education and build college labs that make the discoveries which fuel by-project basis with independent state and local audits. upgrades, energy efficiency incentives, small learning bond. The interest costs will push the total cost of the bond California's economy. Misuse of funds is a crime,punishable by imprisonment. communities, and a medical education expansion with well above$10.4 billion. Can we really afford this? VOTE YES ON 1D: MAKE OUR SCHOOLS VOTE YES ON 1D:FOR OUR ECONOMIC FUTURE some new "telemedicine"program. We need to stick to the While education is important,it is not the only priority we ' EARTHQUAKE SAFE California's future cannot wait. The best way to grow essentials and drop the fluff need to worry about. We need to deal with other problems Our children's safety should be our top priority!The State our economyand create good paying jobs is to make sure Proposition ID is short-sighted. Governor including holding down California's debt and borrowing. Architect has determined that over 7,000 school buildings g e Y g J Propost g g our schools, community colleges, and universities have the Schwarzenegger s 10-year infrastructure plan gave the state And, there are more important things to spend money on and many others on college campuses need structural facilities to train our kids. 1D provides necessary funding a perfect opportunity to do some long-term planning. But than new vocational education facilities, energy efficiency, upgrades to be earthquake safe. to build the community college and university labs and VOTE YES ON 1D: REDUCE OVERCROWDING IN facilities they need. what happened. We get another short-term bond proposal. and seismic safety upgrades. It's about time we said No to OUR SCHOOLS Proposition 1D is only designed to fund the next two years of more and more education spending. Parents, teachers, and California's leaders agree that we need.Even though many school districts are facing declining Vote NO on Proposition 1D. Over a million students are trying to learn in schools with need 1D to provide a quality public education,to make our enrollment today, by the end of the decade enrollment in at least 75%more students than they were designed for. 1D schoolchildren safer in the event of an earthquake, and to will begin building enough schools so that our children can allow community colleges and universities to improve their schools all over the state will begin growing again.How are WILLIAM SARACINO, Member I�k receive the quality education they deserve. facilities. schools supposed to plan if all they get are a series of short- Editorial Board,California Political Review PROP. 1D INVESTS IN: YES ON 1D: PART OF A LONG-TERM PLAN TO term fixes? • Construction of approximately 6,500 new K-12 REBUILD CALIFORNIA classrooms and 3,000 community college classrooms Proposition 1D is part of the Rebuild California Plan, • Repairing 31,000 classrooms which uses the taxes we're already paying to build the roads, • Building science,engineering labs,and classrooms housing, schools,and water systems we need to sustain our • Providing 3,000 vocational education facilities economy and our quality of life for the long term. Visit ReadForYoursej(org for a list of 1D projects. THE REBUILD CALIFORNIA PLAN:YES ON IA, 113, 1D IS SUPPORTED BY BOTH, GOVERNOR 1C, 1D,AND lE SCHWARZENEGGER AND BY DEMOCRATIC gARBARA E. KERR,President y, CANDIDATE FOR GOVERNOR PHIL ANGELIDES. California Teachers Association Leaders of both parties along with education and civic organizations all agree investing in our kids'education is the GEORGE T. CAPLAN,President most important thing we can do to invest in their future. California Community College Board of Governors VOTE YES ON 1D: NEW FACILITIES FOR pAMELA T.JOHNSON,Chair VOCATIONAL AND TECHNICAL EDUCATION Coalition for Adequate School Housing REBUTTALTOARGUMENT1 REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1D VOTE YES.ON 1D. HOW CAN WE AFFORD NOT TO Prop. 1D invests in: ' INVEST IN OUR SCHOOLS? • Construction of approximately 6,500 new K-12 Please don't be fooled into voting for this bond because will still be paying for this bond long after their own your local school needs help.Most schools got nothing from children'have graduated! Few things are more important for our children and our classrooms and 3,000 community college classrooms the last statewide bond, and they will get nothing from this At a time when the Governor and the Legislature are economy than to invest in education. Repair of 31,000 classrooms one! This bond requires 50% matching. funds from local struggling to repay the $100,388,000,000 in previously- 1D is the right solution to make our schools earthquake Building science,engineering labs,and classrooms districts. Unless you live in a wealthy district with surplus approved debt, this $10,416,000,000 bond would dig us safe and build more classrooms to relieve overcrowding for • Providing 3,000 vocational education facilities cash to supply the matching funds, your schools will never much deeper into a financial hole. Taxpayers will be forced our children. It will also help our state economy grow. It Vote Yes on 1D. Invest in our children's future by see a penny from this bond—but you will be required to pay to pay back more than twice the amount borrowed due to doesn't bite off more than we can afford to do right now,and investing in our.schools today. A bright, highly skilled higher taxes for the next 30 years! Is this fair? it allows planning for the future that is vitally important. student population makes California a stronger,better place compound interest and the cost of lawyers,Wall Street bond p g Y p California is facing the most severe financial crisis traders,and state bureaucrats. 1D will provide real results for our kids. to live for all of us. in its history. Our credit rating is the worst in the nation. Please VOTE*NO on Proposition 1D. Tell Sacramento Our community colleges also give a rapidly growing The Legislature has squandered the opportunity to build politicians to make school construction a top'priority for student population the skills they need to succeed in the BRENDA DAVIS,President new schools with the astounding 23 percent growth in tax existing tax revenues. workforce. We cannot afford to shortchange them— California State PTA revenues over the past three years. California's future depends on their success. LARRY MCCARTHY,President � The results of this financial mismanagement are THOMAS N. HUDSON,Executive Director That's why 1D has gained the support from -parents, California Taxpayers' Association staggering. For decades, we will be forced to pay higher California Taxpayer Protection Committee j teachers, seniors; business and taxpayer groups, and a WILLIAM HAUCK,President E taxes Just to pay back current debt. Today's schoolchildren bipartisan group of the Legislature. California Business Roundtable The California Taxpayers'Association says,"Proposition t I' 1D is a fiscally responsible way to finance school repair and is construction." 341 Arguments * Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. ***Arguments 135 Arguments printed on this page are the opinions of the authors and have not been checkedfor accuracy by any official agency. PROPOSITION DISASTER PREPAREDNESS AND FLOOD PREVENTION PROP i DISASTER PREPAREDNESS AND FLOOD PREVENTION I BOND ACT OF 2006. BOND ACT OF 2006. 1E I-E OFFICIAL TITLE AND SUMMARY * *.* Prepared by the Attorney General * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) for flood control projects located throughout, the FIGURE 1 DISASTER PREPAREDNESS AND FLOOD PREVENTION BOND ACT OF 2006. state. For example, the state has provided funding Central Valley Flood Contro[Systern • This act rebuilds and repairs California's most vulnerable flood control structures,to protect homes for the Santa Ana River Mainstem flood control and prevent loss of life from flood-related disasters, including levee failures, flash floods, and project that spans Orange, Riverside, and San mudslides. Bernardino Counties. In the Sacramento-.San Sacramento •Chico River • Protects California's drinking water supply system by rebuilding delta levees that are vulnerable to Joaquin River Delta region (Delta), as another —Feather aver earthquakes and storms. example, the state has no oversight role with • Authorizes a $4.09 billion dollar bond act. • Appropriates' mone from the General Fund t respect to local levee construction or maintenance uba City y o a off bonds. pay (a majority of Delta levees—about 700 miles— 4 Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: are located outside the state system). Because j a significant portion of the state's population Yoto Bypass— Sacramento • State cost of about $8 billion over 30 years to pay off both the principal ($4.1 billion) and interest depends on water supplies that come through the ($3.9 billion) costs on the bonds. Payments of about $266 million per year. Delta, there is a state interest in the continued Rio vista• • Reduction in local property tax revenues of potentially up to several million dollars annually. operation of the Delta levee system. Given this, _ _ _ _ _ _ - - - - - - - - • A ditional unknown state and local government costs to operate or maintain properties or projects the state has provided financial assistance over acquired or developed with these bond funds. •Stockton many years to local flood control districts in the Delta region to rehabilitate.and maintain levees. . i FINAL VOTES CAST BY THE LEGISLATURE ON AB 140 (PROPOSITION 1E) Funding. In general, state flood management San Joaquin River Senate: Ayes 36 Noes 1 programs have been funded from the General Fund, with some use of bond funds. Since 1996, Assembly: Ayes 62 Noes 9 the voters have authorized a number of state Los Banos'* general obligation bonds, of which about $400 ANALYSIS BY THE LEGISLATIVE ANALYST million has been allocated specifically for flood Levee management purposes. Most of these bond funds — River Mendota• BACKGROUND for flood management have already been spent. other flood control infrastructure such as overflow I . Not to scale State Role. Multiple agencies at each level of Weirs and channels. The state directly funds the State funding levels for flood management government (state, federal, and local) have some construction and repair of flood management have varied substantially on a year-to-year responsibilities for flood management. In addition, structures such as levees, typically with a federal basis, largely depending on the availability of and, in some cases, financial assistance from the General Fund and bond monies for this purpose. state. private entities own and operate some flood control and local cost share. For approximately 80 percent of the levees in the Central Valle flood control For .example, since 2000-01, annual state A law passed earlier this year provides $500 facilities.The state carries out a number of ro rams Y p g funding for flood management has varied from million from the General Fund for emergency designed to provide flood management. Some of system,the state has turned over the operations and maintenance.to local governments (primarily local a low of about $60 million (2002-03) to a high levee repairs and other flood management-related these programs are operated directly by the state, of about $270 million (2000-01). In addition while others provide grants to local agencies for flood control districts), although the state retains costs. similar purposes. ultimate responsibility for these levees and the to state flood management programs, local governments, including flood control districts The Department of Water Resources (DWR). system as a whole. rough has made h estimates of the cost to repair and The state is primarily responsible for flood and other public water agencies, operate their g control in the Central Valley. As shown in Figure Outside the Central Valley system,' the state's own flood.management programs and projects. upgrade the Central Valley flood control system 1, the state Central Valley flood control system role in flood management generally consists of Funding for these local programs comes from and levees'in the Delta of between $7 billion and II includes about 1,600 miles of levees, as well as providing financial assistance to local governments various sources, including property assessments $12 billion. is Analysis 137 36 1 title and Summary/Analysis*** For text of Proposition 1E seepage 125. { PROP DISASTER PREPAREDNESS AND FLOOD PREVENTION DISASTER PREPAREDNESS AND FLOOD PREVENTION PROP 1E BOND ACT OF 2006. BOND ACT OF 2006. 1E ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) PROPOSAL FIGURE 2 measure results in property being exempted from Operational Costs. To the extent that bond This measure authorizes the state to sell about Proposition ' Funds taxation due to acquisitions by governments, local r funds are used by state and local governments to j $4.1 billion in general obligation bonds for various Amount governments would receive reduced property-tax purchase property or develop a new flood control flood management programs.(See An Overview of (In Millions) revenues. Because the measure does not specify project, these governments would incur unknown ; State Bond Debt"on page 96 for basic information what portion of the bond funds will be used for additional costs to operate or maintain the properties 1' on state general obligation bonds.) Figure 2 acquisitions, the impact on• local property tax or projects. summarizes the purposes for which the bond revenues statewide is unknown, but is potentially State Central'Valley flood control $3,000 up to several million dollars annually. money would be available to be spent by DWR and system repairs and improvements; for grants to local agencies. In order to spend these Delta levee repairs and maintenance. bond funds, the measure requires the Legislature to appropriate them in the annual budget act or Flood control subventions 500 (local projects outside the Central Valley). another law. Specifically,the bond includes about$4.1 billion Stormwater flood management 300 ( for various flood management activities, allocated grants for projects outside the Central Valley). as follows: Flood protection corridors and bypasses; 290 • State Central Valley Flood Control System 'and floodplain mapping. Delta Levees—$3 Billion. To evaluate, repair, and restore existing levees in the state's Central• Total $4,0901 Valley flood control system;, to improve or add facilities in order to increase flood protection for urban areas in the state's Central Valley flood FISCAL.EFFECTS control system; and to reduce the risk of levee Bond Costs. The costs of these bonds would failure in the Delta region through grants to local depend on interest rates in effect at the time they agencies and direct spending by the state. are sold and the time period over which they are • Flood Control Subventions—$500 Million. To repaid. The state would likely make principal and provide funds to local'governments for the state's interest payments from the state's General Fund share of costs for locally sponsored, federally over a period of about 30 years. If the bonds were authorized flood control projects outside the sold at an average interest rate of 5 percent, the Central Valley system. cost would be about $8 billion to pay off both the • Stormwater Flood Management—$300 principal ($4.1 billion) and interest ($3.9 billion). Million. For grants to local agencies outside of The average payment would be about $266 million the Central Valley system for projects to manage per year. Stormwater. Property Tax-Related Impacts. The measure • Statewide Flood Protection Corridors and provides funds for land acquisition by the state Bypasses—$290 Million.To protect, create, and for flood management, including the development enhance flood protection corridors, including of bypasses and setback levees. Under state law, flood control bypasses and setback levees;" as property owned by government entities.is exempt well as for floodplain mapping. from property taxation. To the extent that this 38 1 Analysis yt zt ,k**Analysis 139 For text of Proposition IE seepage 125. PROP DISASTER PREPAREDNESS AND FLOOD PREVENTION DISASTER PREPAREDNESS AND FLOOD PREVENTION PROP 1E BOND ACT OF 2006. * * * * * * BOND ACT OF 2006. 1E ARGUMENT IN FAVOR OF PROPOSITION 1E ARGUMENT AGAINST PROPOSITION 1E YES ON PROPOSITION IE: PROTECT AGAINST and overflows are generally caused by overused and We need strong levees and clean water, but Proposition federal funding. This is a federal responsibility. California FLOODS, PREVENT OCEAN POLLUTION, SAFEGUARD antiquated wastewater systems. IE is the wrong solution. This measure is full of misguided taxes are already high, and we shouldn't have to pay more 1 CLEAN DRINKING WATER Proposition IE helps ensure that clean water is available priorities and doesn't have any controls on funds. The most taxes to protect ourselves because the federal government I (j California continually faces natural disasters—from for all Californians all the time by providing funds to rebuild important thing we can do is to make sure we have enough won't,plan for disasters. earthquakes and fires to floods and mudslides. Proposition out-of-date systems to prevent pollution and safeguard water water for our growing population, but IE doesn't spend a —Fiscally irresponsible: f IE is critical to prepare for these natural disasters and ensure sources. cent on that. By taking on what are really local and federal I! we always have enough clean water to meet our needs. YES ON IE: STRICT ACCOUNTABILITY AND NO Prop. I sounds good, but it means higher' taxes for responsibilities, we are encouraging mismanagement from YES ON IE: PROTECT HOMES,PREVENT LOSS OF NEW TAXES projects that local and federal governments should already all levels of government. And, they will expect taxpayers {� be doing. to foot the bill down the road rather than refocusing their LIFE Proposition 1 E won't raise taxes to pay for these important Our nation learned a tragic lesson from Hurricane infrastructure improvements. By building safeguards now, —Proposition IE won't provide"Clean Water"to drink: priorities. Katrina—we cannot continue to neglect our unsafe levees with eurrent revenues, we can limit the impact of disasters California's population is expected to grow to fifty million —Californians must focus on our priorities: and flood control systems. One catastrophic flood would when they do hit. And, Prop. lE includes annual audits and people in the next decade.This will place an enormous strain While our economy is slowly recovering, approving impact the entire state and disrupt the-supply of clean tough fiscal safeguards to ensure the money is spent wisely. on our water supply. However, this bond will not provide Proposition IE would be like taking out a loan to buy new growing can't afford to a our mort a e California's when you ca drinking water to major cities. YES ON lE: PART OF A LONG=TERM PLAN TO a single drop of drinking water for Ca g g patio furniture y pay y g g means less money ' not build a single water storage reservoir or or rent. At the same time this measure y Proposition IE expeditesr population.It will o g g , urgent projects to protect homes REBUILD CALIFORNIA Pg P J P and lives across the state: water treatment facility.Yet it will give hundreds of millions for other important priorities like education, health care, or Proposition IE is part of the Rebuild California Plan, to private organizations to spend on their pet projects and lets public safety. • Urgent repairs and essential improvements to levees and which uses the taxes we're already paying to build the roads, them use these funds for their own"administrative costs. The state can't take responsibility for every project in flood control facilities housing, schools, and water systems we need to sustain our • Increased flood protection for urban areas economy and our quality of life for the long-term. —Benefits local urban projects: the state. These projects should be paid for by the local and • Rural California loses under Proposition 1E. State- federal agencies responsible for these public safety issues.If Evaluation and repair of the current flood control system The Rebuild California Plan: YES ON IA, 1B, 1C, 1D, "Californians deserve to know that their homes and and IE -taxpayers' money from these bonds will go to protecting we don't make them reprioritize their spending,our children families are protected from flooding,caused by levee failure California's population will reach 50 million in the next 20 cities and their water supplies.These communities and their will continue to foot the bill for their short-sighted planning in the Central Valley,or flash flooding in Southern California years—twice what our current infrastructure was designed local governments should be paying for their own water and mismanagement. supply improvements. Local tax dollars should be used.to Proposition IE is bad for families,bad for taxpayers,and . or coastal areas. Proposition IE is vital to the state s ability for—and it can't be rebuilt overnight. That's why we've got fund these projects,not state funds. .bad for California.Vote NO on IE. to ensure flood safety throughout the state."—Lester Snow, to start now.Director,California Department of Water Resources To learn more about how this infrastructure plan will benefit —Federal responsibility: YES ON 1E: PROTECT OUR OCEANS AND OUR you and your community,visit www.ReadForYourset(org. Instead of putting the state in more debt to pay for these THOMAS N. HUDSON,Executive Director levee repair projects, our state should be demanding more The California Taxpayer Protection Committee SUPPLY OF CLEAN,SAFE DRINKING WATER YES on 1E: Clean Water, Flood Protection, and Disaster Outdated flood control systems can threaten drinking Preparedness. water supplies,pollute streams,and foul beaches. Some cities rely on water mains and sewers more than a HENRY RENTERIA,Director t century old that can fail at any time.Experts say that water California Office of Emergency Services ARGUMENT AGAINST PROPOSITION pressure inside the pipes is often the only thing keeping MICHAEL L. WARREN,President REBUTTAL them from collapsing. California Fire Chiefs Association In 2001,sewer spills and overflows forced officials to issue Proposition 1E is vital to California's disaster federal and local matching funds means we can complete over 2,000 beach closings and health advisories. Spills LINDA ADAMS, Secretary preparedness—protecting lives and water supplies. It is our more of these important projects in communities across California Environmental Protection Agency responsibility to ensure that all Californians have access to the state. And, IE has important accountability standards, safe, clean drinking water at all times. Yes on IE does that including independent audits, to ensure money is spent REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1E without raising taxes,and it leverages additional federal and wisely. local funding. Proposition 1 E is part of the Rebuild California Plan.It will After reading Prop. IE,it won't surprise you to learn that This is a TAX INCREASE.Taxpayers will be forced to spend WE CANNOT AFFORD TO NEGLECT OUR WATER provide the flood protection vital to sustaining our economy, the Legislature adopted it after 3 a.m.when they got tired of over$8,200,000,000 to pay back this bond with interest! SUPPLY AND FLOOD PROTECTION SYSTEMS protecting our supply of drinking water, and preserving our arguing. They couldn't agree on a list of projects or even a At recent prices this proposal contains funding for If we wait for others to fix our unsafe levees and flood quality of life for the long term. list of priorities; they could only agree that THEY WANT about 25 miles of levees, but California has far more than control systems, we are putting our homes, drinking water YES on IE: Clean Water, Flood Protection, and Disaster MORE OF YOUR MONEY right away.How typical! That's 2,000 miles of levees to maintain. Since this measure does supplies,and children at risk in every corner of the state. By Preparedness for Our Future. what this$4,090,000,000.00 bond is all about: raising taxes nothing to reform our crazy spending practices and policies, building safeguards now,we can limit the impact of disasters to give Sacramento politicians a blank check based on vague we might not even get 25 miles of repairs. What is worse, when they do hit.Yes on IE provides: THOMAS A. NASSIF,President promises that they won't waste our money this time. It's like with politicians in charge of selecting the projects (not • Increased flood protection for urban and rural areas, Western Growers giving a drunk one more drink for the drive home. hydrologists, scientists, and engineers), funding will be meaning a stable,clean water supply. LINDA ADAMS, Secretary j Our legislators have been ignoring public levees for years. based on political influence rather than critical need.This is • Repaired and improved levees. California Environmental Protection Agency Now, instead of allocating a small portion of our record- a recipe for disaster. • Updated flood control systems—to prevent failures that PETER SILVA,Former Vice Chair breaking revenues for levees,they want to borrow money for Please Vote"NO"on IE. can pollute our streams and oceans. thirty years for repairs that will need to be repaired again FISCALLY RESPONSIBLE State Water Resources Control Board long before this bond is paid off.What will we do then? THOMAS N. HUDSON,Executive Director Proposition 1E uses the taxes we are already paying to The California Taxpayer Protection Committee make these important infrastructure improvements.Utilizing 40 1 Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. ***Arguments 1 4 1 ' ,r PROPOSITION SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. PROP ' . 83 PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. 83 INITIATIVE STATUTE. INITIATIVE STATUTE. j OFFICIAL TITLE AND SUMMARY 7k Prepared by the Attorney General * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) i The CDCR utilizes Global Positioning System PROPOSAL SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. (GPS)monitoring devices to track the location of some PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. sex offenders on parole. Currently, this monitoring Increase Penalties for Sex Offenses. This measure INITIATIVE STATUTE. is limited to about 1,000 sex offenders who have increases the penalties for specified sex offenses.It does been,identified as high risk to reoffend. Some county this in several ways. In some cases: • Increases,penalties for violent and habitual sex offenders and*child molesters. probation departments also use GPS to monitor some ' p p It broadens the definition of certain sex offenses. • Prohibits registered sex offenders from residing within 2,000 feet of any school or park. sex offenders on probation. For example, the measure expands the definition • Requires lifetime Global Positioning System monitoring of felony registered sex offenders. Sexually Violent Predators (SVP). Specified sex of aggravated sexual assault of a child to include • Expands definition of a sexually violent predator. y • Changes current two-year involuntary civil commitment for a sexually violent predator to an offenders who are completing their prison sentences are offenders who are at least seven years older than indeterminate,commitment subject to annual review b the Director of Mental Health and subsequent referred by CDCR to the Department of Mental Health the victim, rather than the ten years required under ' y q (DMH) for screening and evaluation to determine current law. ability of sexually violent predator to petition court for sexually violent predator's conditional release or unconditional discharge. whether they meet the criteria for an SVE Under current It provides for longer penalties for specified sex law, an SVP is defined as "a person who has been offenses.For example,it expands the list of crimes that convicted of a sexually violent offense against two or qualify for life sentences in prison to include assault to • Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:, g commit rape during the commission of a first degree • Y � � p more victims and who has a diagnosed mental disorder • Net state prison, parole, and mental health program costs of several tens of millions of dollars initially, that makes the person i danger to the health and safety burglary. of others in that it is likely that he or she will engage It prohibits probation in lieu of prison for some sex growing to a couple hundred million dollars annually within*ten years. in sexually violent criminal behavior."Those offenders • Potential one-time state mental hospital and prison capital outlay costs eventually reaching several offenses,including spousal rape and lewd or lascivious hundred million dollars. who are found to meet the criteria are referred to district attorneys. District attorneys then determine whether to acts. • Net state and local costs for court and jail operations are unknown. pursue their commitment by the courts to treatment in a • It eliminates early release credits for some inmates state mental hospital as an SVP. convicted of certain sex offenses (for example, habitual sex offenders who have multiple convictions ANALYSIS BY THE LEGISLATIVE ANALYST Offenders subject to .SVP proceedings are often for specified felony sex offenses such as rape). represented by public defenders. While these court ' proceedings are pending, offenders who have not It extends parole for specified sex offenders, BACKGROUND history of the offender. There are about 8,000 persons completed their prison sentences.continue to be held including habitual sex offenders. convicted of a felony sex offense in California each year. in prison. However, if an offender's prison sentence These changes would result in longer prison and Definition of Sex Offenses. Sex offenses are crimes Of these,about 39 percent are sent to state prison.Most parole terms for the affected offenders. of a.sexual nature. The vary in e and can be has been completed, he or she may be held either in p y D' of the rest are supervised on probation in the community county custody'or in a state mental hospital. Offenders misdemeanors or felonies. For example, distribution of Finally, this measure increases court-imposed fees (5 percent),sentenced to county jail(1,percent),or both designated as SVPs by the courts are committed to a obscene material is a misdemeanor and rape is a felony (53 percent). state mental hospital for u to two ears. An offender currently charged to offenders who are required to 'sex offense. Felony offenses are more serious crimes p p y register as sex offenders. than misdemeanors. Sex Offender Registration, Residency can be recommitted by the courts in subsequent court Requirements and Monitoring. Current law, proceedings. Require GPS Devices for Registered Sex Offenders. Punishment for Committing Sex Offenses. Current Generally under this measure,individuals who have been law defines the penalties for conviction of sex-related requires offenders convicted of specified felony or As noted above, state mental hospitals hold sex convicted of a felony sex offense that requires registration misdemeanor sex crimes to register with local law - offenders who-have been committed as SVPs. State crimes. The punishment depends primarily on the type enforcement officials. There area approximately 90,000 mental hospitals also hold some sex offenders who have and have been sent to prison would be monitored by GPS and severity of the specific offense. Conviction of a pp y devices while on parole and for the remainder of their registered sex offenders in California. completed their prison sentences,but are still undergoing misdemeanor sex offense is punishable by up to a year lives. SVP evaluations or commitment proceedings. As of , in oounty jail, probation, fines,'or a combination of the Current law bars parolees convicted of specified sex June 2006, 456 sex offenders were being held in state The CDCR would be authorized to collect- fees three. Conviction of a felony sex offense can result in offenses against a child from residing within one-quarter hospitals with a commitment by a court as an SVP. In from affected sex offenders to cover the costs of the same penalties as a misdemeanor or a sentence to or one-half mile (1,320 or 2,640 feet, respectively) addition, 188 sex offenders were being held in state GPS monitoring. The amount of fees collected from state prison for up to a life term. The penalty assigned of a school. The longer distance is for those parolees mental hospitals,and 81 were in county custody pending individual offenders would vary depending on their by the court for a felony conviction depends on the, identified as high risk to reoffend by the California the completion of commitment proceedings. ability to pay. specific crime committed,as well as other factors such as Department of Corrections and Rehabilitation(CDCR). the specific circumstances ofthe offense and the criminal 42 1 Title and Summary/Analysis*** ***Analysis 143 For text of Proposition 83 seepage 127 i PROP SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. PROP 83 PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. 83 INITIATIVE STATUTE. INITIATIVE STATUTE. ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * *ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) . i Limit Where Registered Sex Offenders May Live. State Prison Costs. This measure would increase the State SVP Program Costs. By making more sex state are likely to be substantially greater than the This measure bars any person required to register as a prison population, resulting in a significant. increase offenders eligible for SVP commitments, this measure savings. sex offender from living within 2,000 feet (about two- in prison operating costs. In particular, increasing would result in increased 'state costs generally in the Court and Jail Fiscal Impacts. This measure would fifths of a mile)of any school or park.A violation of this sentences for sex offenders would result in some following categories: also affect state and local costs associated with court provision would be a misdemeanor offense, as well as sex offenders beingsentenced to and remaining inVP g and ail operations. For example, the additional S a parole violation for parolees. The longer current law prison for longer periods, resulting m a larger prison Referral and Commitment Costs. These costs are p p p g p g P g g P commitment petitions resulting from .this measure restriction of one-half mile 2'640 feet for s population, mainly associated with screening sex offenders (2,640 ) specified p over time. This would result in costs of referred by CDCR to DMH to determine if they would increase court costs for hearing these civil cases. high-risk sex offenders on parole would remain in effect. unknown magnitude, but likely to be in the tens of Also, county jail operating costs would increase to the !' merit a full evaluation,performing such evaluations, In addition, the measure authorizes local governments millions of dollars annually once fully implemented in � to further expand these residency restrictions. less than ten years. It is also possible that this measure and providing expert testimony at court commitment extent that offenders who have court decisions pending hearings. This measure would increase these state on their SVP cases were held in county jail facilities. I Change SVP Law. This measure enerall makes could eventually result in significant additional capital g g g Y costs probably by the low tens of millions of dollars The provision making it unlawful for sex offenders to more sex offenders eligible for an SVP commitment. It outlay costs to accommodate the increase in the inmate g annually. These costs would begin to occur in the reside within 2,000 feet of a school or park could result 1 population. does this by (1) reducing from two to one the number initial year of implementation. in additional court and jail costs to prosecute violations j of prior victims of sexually violent offenses that qualify The impact on the prison population of requiring sex State Hospital Costs. State costs to staff, maintain, of this provision. • • an offender for an SVP commitment and (2) making offenders to wear GPS devices is unclear. On,the one and operate the mental hospitals could reach Other provisions of •this measure could result additional prior offenses—such as certain crimes hand, GPS monitoring could increase the number of I $100 million annually within a decade and would in savings for court and jail operations. The committed by a person while a juvenile—"countable" offenders who are identified and returned to prison for continue to row significantly thereafter.These costs for purposes of an SVP commitment. The measure violating the conditions of their parole or committing g g Y measures provisions providing for the indeterminate would result from additional SVP commitments also requires that SVPs be committed by the court to new crimes. On the other hand, GPS monitoring could commitment of SVPs, instead of the current two-year a state mental hospital for an undetermined period of act as a deterrent for some offenders from to state mental hospitals, as well as holding some recommitment process, would reduce county costs committing sex offenders—who have completed their prison time rather than the renewable two-year commitment new violations or crimes,hence reducing the likelihood sentencesin state mental hospitals while they "are measure would increase the length of timo for SVP commitment proceedings. Provisions of this provided for under existing law. As under current law, that they return to prison.Whatever net impact GPS does � being evaluated to determine whether they should sex offenders spend in prisornor mental ho that some spitals. To once an offender had received a commitment as an SVP, have on returns to prison will also affect parole, court, receive an' SVP commitment. (Some of the sex he or she could later be released from a state hospital by and local law enforcement workloads and associated offenders undergoing evaluation as SVPs might also the extent that this occurs,these offenders would likely the courts if(1)DMH determined the individual should costs. commit fewer crimes in the community, resulting in no longer be held or (2) the offender successfully . be held in county jails.) State Parole and GPS Monitoring Costs. The some court and.local criminal justice savings. petitioned a court for release. g Additional SVP commitments could eventually initiative's provisions requiring specified-registered sex result in one-time capital outlay costs of up to Given the potential for the factors identified above to The measure also changes the standard for release offenders to wear GPS devices while on parole and for the several hundred million dollars for the.construction offset each other, the net fiscal impact of this measure of SVPs from a state mental hospital. For example, remainder of their lives would result in additional costs of additional state hospital beds. on state and local costs for the court and jail operations current law generally requires DMH to examine the for GPS equipment, as well as for supervision staff to The additional operational and capital outlay costs cannot be determined at this time. mental condition of a sex offender each year. This Y track offenders in the community.These costs are likely would be partly offset in the long term. This is Other Impacts on State and Local Governments. measure specifically requires DMH, as part of this to be in the several tens of millions of dollars annually because the longer prison sentences for certain sex annual review, to examine whether a person being held There could be other savings to the extent that offenders p g within a few years.These costs would grow to about$100 crimes required by this measure would delay'SVP in a state hospital as an SVP still meets the definition imprisoned for longer periods require fewer government million annually after ten years,with costs continuing to referrals and commitments to state mental hospitals. ' of an SVP, whether release is in the best interest of the increase significantly in subsequent years. These costs would also be partly offset because the services, or commit fewer crimes that result in victim- person,and whether conditions could be imposed at time. related government costs. Alternatively, there could be Because the measure does not specify whether the change from two-year commitments to commitments of release that would adequately protect the community. p fy an offsetting loss of revenue to the extent that offenders state or local governments would be responsible for for an undetermined period of time is likely to The impact of these changes on the number of SVPs is reduce DMH's costs for SVP evaluations and court serving longer prison terms would have become unknown. monitoring. sex offenders who have been discharged taxpaying citizens under current law. The extent and Y our analysis indicates that on. Howeveri from state parole supervision,it is unclear whether local testmon magnitude of these imp acts is unknown. FISCAL EFFECTS governments would bear some of these long-term costs. balance the operating and capital outlay costs to the g p These costs likely would be partially offset by several This measure would have a number of significant million dollars annually in court and parolee fees fiscal effects on state and local agencies. The major authorized by the measure, though the exact amount, fiscal effects are discussed below. would largely depend on offenders'ability to pay. 441 Analysis*** ***'Analysis 145 For text of Proposition 83 seepage 127 i? PROP SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. _ SEX OFFENDERS. SEXUALLY VIOLENT PREDATORS. PROP R PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING. Q� `'3 INITIATIVE STATUTE. * * * * * INITIATIVE STATUTE. v FAVORARGUMENT IN 1 PROPOSITION ' ' ' ' " I ' 1 1 • Proposition 83—JESSICA'S LAW—will protect our • California State Sheriffs Association • California District Proposition 83 would cost taxpayers an estimated $500 Prosecutors in the State of Iowa know from sad children by keeping child molesters in prison longer;keeping Attorneys Association • California Organization of Police million but would not increase our children's safety.Instead, experience That this type of residency restriction does them away from schools and parks; and monitoring their and Sheriffs • California Police Chiefs Association • Crime by diluting law enforcement resources, the initiative would not work. In 2001, Iowa adopted a similar law, but the movements after they are released. Victims United of California•California Women's Leadership actually reduce most children's security while increasing the association of county prosecutors that once advocated for A rape or sexual assault occurs every two minutes.A child Association • California Sexual Assault Investigators danger for those most at risk: that law now say that it "does not provide the protection that is abused or neglected every 35 seconds. Association • Women Prosecutors of California • Mothers —First, the initiative proposes to "monitor" every was originally intended and that the cost of enforcing the Over 85,000 registered sex offenders live in California. Against Predators•Mark Lunsford,father of Jessica Lunsford registered sex offender,on the misguided theory that each is requirement and unintended effects on families of offenders Current law does not provide Law Enforcement with the tools •Numerous cities,counties,and local sheriffs,police chiefs, likely to reoffend against "strangers" But law enforcement warrant replacing the restriction with more effective experience shows that when sex registrants reoffend, their protective measures." (February 14, 2006, "Statement on they need to keep track of these dangerous criminals.Secrecy and elected officials. is the child molester's biggest tool. How can we protect our Law enforcement professionals know there is a high risk targets are usually members of their own household. This Sex Offender Residency Restrictions in Iowa, Iowa County children if we don't even know where the sex offenders are? that a sexual predator will commit additional sex crimes after Proposition would do nothing to safeguard children in their Attorneys Association.) (To see the full Statement, go to: Proposition 83 is named after Jessica Lunsford a 9-year- being released from prison. Prop. 83 keeps these dangerous own homes, even though they are most at risk. www.iowa-icaa.com/index.htm or www.cacj.org.) j I' old girl who was kidnapped, assaulted, and buried alive by a criminals in prison longer and keeps track of them once they —Second, the Proposition would not focus on the real A summary of the Iowa prosecutors' findings shows why are released. problem—dangerous sex offenders—but would instead waste the Iowa law was a disaster and why Proposition 83 must be convicted sex offender who had failed to report where he lived. Proposition 83 will: Proposition 83 means safer schools,safer parks, and safer limited resources tracking persons who pose no risk.The new rejected: neighborhoods. law would create an expensive tracking systemfor thousands of . Residency restrictions do not reduce sex offenses against Electronically monitor, through GPS tracking, dangerous registrants who were convicted o minor, nonviolent offenses, sex offenders for life once they finish their prison terms. Proposition 83 means dangerous child molesters will be g fchildren or improve children's safety. kept away from our children and monitored for life. perhaps years or decades ago. Law enforcement's resources . Residency restrictions will not be effective against 80 to Require dangerous sex offenders to serve their entire should be directed toward high risk individuals living in our 90%of sex crimes against children,because those crimes sentence and not be released earl for an reason. Proposition 83 means predatory sex criminals will be g Y Y neighborhoods. are committed b a relative or acquaintance of the child. • Create PREDATOR FREE ZONES around schools and Punished and serve their full sentence in every case. Y q • arks to prevent sex offenders from livin near where our Our families deserve the protection of a tough sex offender Proposition 83 would have other dangerous,unintended Residency restrictions cause sex registrants to disappear P p g punishment and control l State Legislature has failed consequences. The Propositions monitoring provisions from the registration system, harming the interest of sh law. The ' children learn and play. would be least effective against those posing the greatest public safety. to pass Jessica's Law time and time again. WE CANNOT P Y• Protect children from INTERNET PREDATORS. by WAIT ANOTHER DAY TO PROTECT OUR KIDS. danger. Obviously, dangerous offenders would be the least Enforcing the residency restrictions is expensive and cracking down on people who use the Internet to.sexually likely to comply, so the proposed law would push the more ineffective. victimize children. Vote YES on Proposition 83—JESSICA'S LAW—to protect serious offenders underground, where they would be less The law also caused unwarranted disruption to the our families and make California a safer place for all of us. effectively monitored b police. In addition b rohibitin Require MANDATORY MINIMUM PRISON .ff Y Y P , Y prohibiting innocent families of ex-offenders. SENTENCES for 'dangerous child molesters and sex For more information,please visit wwwJessicasLaw2006.com. sex offenders from living within 2,000•feet of a park or For all of these reasons,vote"No"on Proposition 83! criminals. school, the initiative would force many offenders from Allow prosecutors to charge criminals who possess child GOVERNOR ARNOLD SCHWARZENEGGER urban to rural areas with smaller police forces. A high y pornography with a felony. (Current law treats child porn like DISTRICT ATTORNEY BONNIE DUMANIS concentration of sex offenders in rural neighborhoods will CARLEEN R.ARLIDGE,President trespassing or driving on a suspended license!) San Diego County not serve public safety. California Attorneys for Criminal Justice Crime Victims and Law Enforcement leaders urge you to pass this much needed reform.Jessica's Law is supported by: HARRIET SALARNO,President Crime Victims United of California REBUTTAL 1 , FAVORRGUMENT IN I PROPOSITION REBUTTAL 1 PROPOSITION Don't be fooled by the false arguments the group of lawyers give law enforcement the tools they need to stop sexual The argument in favor of Proposition 83 ignores the sad —Impose lifetime GPS monitoring on first-time offenders iagainst Proposition 83 is making. They represent criminal predators before they strike again. f lessons learned by other states. For example, the leading convicted of nonviolent offenses. For example, a i defense attorneys who make their living defending criminals. The man who confessed to murdering nine-year- prosecutors' association in Iowa, which once urged the 19 year-old boy could be subjected to lifetime monitoring Of course they don't want tougher laws! old Jessica Lunsford was a convicted sex offender who adoption of laws similar to Proposition 83, now argues after a conviction for having sexual contact with his Let's consider the FACTS: failed to register with local police. He took Jessica that those laws be repealed because they have proven to be 17 year-old girlfriend. • EVERY major POLICE, SHERIFF, and DISTRICT from her bedroom window, assaulted her for three I' ineffective, a drain on crucial law enforcement resources, —Impose both lifetime residence restrictions and lifetime ATTORNEY organization in California strongly supports days, and buried her alive only a few doors from and far too costly to taxpayers. California cannot afford to her home. GPS monitoring on thousands of people who have lived Jessica's Law. repeat that mistake. ' law abiding lives for years or even decades. • EVERY major CRIME VICTIM organization in GPS MONITORING COULD HAVE SAVED JESSICA�S The Proponents claim that the law is directed at "child These results are simply wrong. California strongly supports Jessica's Law. LIFE! Tragically, it's too late to save Jessica Lunsford. But !�I molesters and dangerous sex offenders,"but its mostpunitive Thousands of dangerous sexual predators are living in it's not too late to prevent countless other children from being and restrictive measures would apply far more broadly:even Here's the bottom line. California has laws that protect us g p g p g to those convicted of misdemeanor, nonviolent offenses. They from Sexually Violent Predators,and this Initiative could have our communities and neighborhoods, and police do not attacked and murdered by sexual predators. would also apply to people who have long led law-abiding lives focused on such dangerous persons.But it does not!Don't be have the tools they need to track them down. Vote YES on 83—Jessica's Law. Jessica's Law will KEEP TRACK OF FELONY SEX for years a fter completing their sentences. More specifically, fooled.VOTE NO ON PROPOSITION 83. MONTY HOLDEN,Executive Director after their release from prison by requiring the Proposition would: them to wear a GPS tracking device at all times. California Organization of Police and Sheriffs(COPS) j —Prohibit thousands of misdemeanor offenders from living CARLEEN R. ARLIDGE,President Jessica's Law will STOP dangerous sex offenders from STEVE IPSEN,President near a school or park for the rest of their lives. California Attorneys for Criminal Justice living near school's and parks where they can stalk and California Deputy District Attorneys Association prey on our children. SHERIFF GARY PENROD,President Your YES vote on Proposition 83—Jessica's Law—will California State Sheriffs Association 461 Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. ***Arguments 147 PROPOSITION WATE.RCUALITY, SAFETY AND SUPPLY. WATERC.UALITY, SAFETY AND SUPPLY. PROP 84 FLOOD CONTROL. NATURAL RESOURCE PROTECTION. FLOOD CONTROL. NATURAL RESOURCE PROTECTION. 84 PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General * * AN ALYSIS BY THE LEGISLATIVE ANALYST BACKGROUND • State and Local Parks. The state operates the WATER QUALITY, SAFETY AND SUPPLY: state park system and has provided funds to local FLOOD CONTROL. .NATURAL RESOURCE PROTECTION. State Spending on Resources Programs. The P g g governments for the acquisition, maintenance, PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. state operates a variety of programs to conserve and operation of local and regional parks. natural resources,protect the environment,provide • Funds projects relating to safe drinking water, water quality and supply, flood control, waterway Funding for Resources Programs.g . Funding and natural resource protection, water pollution and contamination control state and local ark flood control, and -offer recreational opportunities for these various programs has traditional) come p p p for the public. The state also operates aprogram p g Y improvements,public access to natural resources, and water conservation efforts. p p from General Fund revenues, federal funds, and • Provides fundingfor emergency drinking water, and exempts such expenditures from public contract to plan for future water supplies, flood control, !' g Y g � P P p general obligation bonds. Since 1996, voters have ' and procurement requirements,to ensure immediate action for public safety and other water-related requirements of a growing authorized approximately $11 billion in general • Authorizes $5,388,000,000 in general obligation bonds to fund projects and expenditures, to be repaid I population. In addition to direct state expenditures, obligation bonds for various resources purposes. from the state's General Fund. the state also provides grants and loans to local governments and nonprofit organizations for Of this amount, approximately $1.4 billion is projected to remain available for new projects Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: similar purposes.These programs support a variety as of June 30, 2006, primarily for water-related of specific purposes, including: • State cost of about $10.5 billion over 30 years to pay off both the principal ($5.4 billion) and interest purposes. Legislation enacted earlier this year ($5.1 billion) costs on the bonds.-*Payments of about $350 million per year. Natural Resource Conservation. The state has provides $500 million from the General Fund for • Reduction in local property tax revenues of several million dollars annually. provided funds to purchase,protect,and improve emergency levee repairs and other flood control- Unknown costs,potentially tens of millions of dollars per year, to state and local governments to natural areas—including wilderness and open- related expenditures. operate or maintain properties or projects acquired or developed with these bond funds. space areas; wildlife habitat; coastal wetlands; forests; and- rivers, lakes, streams,. and their PROPOSAL watersheds. • Safe Drinking Water. The state has made loans This initiative allows the.state to sell $5.4 billion and grants to public water systems for facility, in general obligation bonds-for safe drinking water, improvements to meet state and federal safe water quality, and water supply; flood control; drinking water standards. natural resource protection;and park improvements. • Flood Control. The state has funded the (See "An Overview of State Bond Debt" on page 96 'I construction and repair of flood control projects for basic information on state general obligation in the state Central Valley flood control system. bonds.) Figure 1 (see next page) summarizes the The state has also provided financial assistance purposes for which the bond money would be to local agencies for local flood control projects .� in the Sacramento-San Joaquin River Delta and available for expenditure by various state agencies I in other areas outside the Central Valley. and for loans and grants,primarily to local agencies • and nonprofit organizations. In order to spend Other Water Quality and Water Supply Projects. T most of these bond funds, the measure requires The state has made available funds for various other projects throughout the state that improve the Legislature to appropriate them in the annual water quality and/or the reliability of water budget act or other legislation. supplies. For example, the state has provided loans and grants to local agencies for the FISCAL EFFECTS construction and implementation of wastewater treatment, water conservation, and water Bond Costs. The cost of these bonds would pollution reduction projects. depend on interest rates in effect at the time they 481 Title and Summary Analysis 149 For text of Proposition 84'see page 138. ------ ----- q PROP WATER QUALITY, SAFETY AND SUPPLY. WATER QUALITY, SAFETY AND SUPPLY. PROP 84 FLOOD CONTROL. NATURAL RESOURCE PROTECTION. FLOOD CONTROL. NATURAL RESOURCE PROTECTION. 84 PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BYTHE LEGISLATIVE ANALYST (CONTINUED) �o ' !If FIGURE 1 are sold and the time period over which they are taxation. To the extent that this initiative results Proposition 84: Uses of Bond Funds repaid. The state would likely make,principal and in property being exempted from taxation due g Amount interest payments from the state's General Fund. to acquisitions by governments and nonprofit i (In Millions) over a period of about 30 years. If the bonds were organizations, local governments would receive Water Quality $1,525 r sold at an�average interest rate of 5 percent,the cost reduced property tax revenues. We estimate these • Integrated regional water management. .1,000 would be about $10.5 billion to pay off both the reduced property tax revenues would be several • Safe drinking water. 380 principal ($5.4 billion) and interest ($5.1 billion). million dollars annually. • Delta and agriculture water quality. 145 The average payment would be about$350 million Protection of Rivers, Lakes, and Streams $928 Operational Costs. State and local governments per year. may incur additional costs to operate or maintain the • Regional conservancies. 279 • Other projects—public access, river parkways, urban stream restoration, 189 Property Tax-Related Impacts. The initiative properties or projects, such as new park facilities, California Conservation Corps. provides funds for land acquisition by governments that are purchased or developed with these bond j • Delta and coastal fisheries restoration. 180 and nonprofit organizations for various purposes. funds. The amount of these potential additional • Restoration of the San Joaquin River. 100 Under state law, property owned by government . costs is unknown, but could be tens of millions of • Restoration projects related to the Colorado River. 90 • Stormwater pollution prevention. 90 entities and by nonprofit organizations (under dollars per year. Flood Control $800 j specified conditions) is exempt from property , • State flood control projects—evaluation, system improvements, flood corridor program. 315 j • Flood control projects in the Delta. 275 j • Local flood control subventions (outside the Central Valley flood control system). 180 • Floodplain mapping and assistance for local land use planning. 30 , Sustainable Communities and Climate Change Reduction $580 • Local and regional parks. 400 j • Urban water and energy conservation projects. 90 • Incentives for conservation in local planning. 90 1 Protection of Beaches, Bays, and Coastal Waters $540 • Protection of various coastal areas and watersheds. 360 i� • Clean Beaches Program. 90 • California Ocean Protection Trust Fund—marine resources, sustainable fisheries, and 90 marine wildlife conservation. C Parks and Natural Education Facilities $500 • State park system—acquisition, development, and restoration. 400 • Nature education and research facilities. 100 Forest and Wildlife Conservation $450 l • Wildlife habitat protection. 225 • Forest conservation. 180 • Protection of ranches, farms, and oak woodlands. 45 Statewide Water Planning $65 • Planning for future water needs, water conveyance systems, and flood control projects. 65 Total $5,388 50 1 Analysis Analysis,151 For text of Proposition 84 seepage 138. — --- -- -- ----- I PROP WATER QUALITY, SAFETY AND SUPPLY. WATERQUALITY SAFETYAND SUPPLY. PROP FLOOD CONTROL. NATURAL RESOURCE PROTECTION. FLOOD CONTROL. NATURAL RESOURCE PROTECTION. Q 84 PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. * * * 84 * * * PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE. ARGUMENT IN FAVOR OF PROPOSITION 84,- ARGUMENT AGAINST PROPOSITION 84 PROP.84 PROTECTS CALIFORNIA'S WATER,LAND, Efforts are underway to address this urgent threat to This measure should have been titled the"Special-Interest- other government spending. Once issued, bonds cannot be AND COASTLINE. public safety and our water supply, but much more needs Hidden-Agenda Bond" because it was placed on the ballot cancelled,repudiated,or discharged in bankruptcy;they can California is growing rapidly,putting new pressure each to be done. Flood control experts agree that Prop. 84 is an { year on our water resources,land,coast,and ocean.Prop.84 important step forward and complements ongoing efforts to by special interests who don't really want you to know where only be repaid with tax revenues. Our state already has a protects these vital natural resources,which are essential to improve flood control in California. all your money is going to be squandered. Every special $7 billion budget deficit, and there is no way to pay for this our health,our economy,and our quality of life. YES on PROP. 84 PROTECTS CALIFORNIA'S interest that helped get this boondoggle on the ballot will get gigantic bond without higher taxes. f YES on 84 PROTECTS DRINKING WATER QUALITY. ECONOMY. a share of the taxpayers'money,but ordinary taxpayers will Local projects should be funded at the local level. This The water we drink and use to grow our food is vulnerable Clean beaches, rivers, and lakes are crucial to tourism, get nothing from this bond but higher taxes for the next three statewide bond is designed to force people in one part of j to contamination.Prop. 84 will: which contributes more than$88 billion to the state economy decades. the state to pay for local-projects on the other side of the • Remove dangerous chemicals from our water supply. each year and directly supports more than 900,000 jobs. This so-called"water bond" has no funding for dams or state.Why should people in Redding pay for urban parks in • Prevent future groundwater contamination. An adequate supply of clean, safe water is also needed for t California's farms and cities.Prop.84 protects the water that water storage The authors set aside billions for bureaucratic San Diego. Why tax people in Los Angeles to pay for beetle • Prevent toxic runoff from flowing into our water. our economy needs to thrive. studies,unnecessary protections for rats and weeds,and other habitat restoration in Sutter County?This is poor tax policy, Prop. 84 is essential to assure our communities CLEAN, YES on 84 WILL NOT RAISE TAXES—AND frivolous projects, but they couldn't find a single penny to• and it was clearly designed to benefit the special interests SAFE DRINKING WATER. Last year, there were more than 1,200 beach closing or INCLUDES TOUGH FISCAL SAFEGUARDS.Prop. 84: build freshwater storage for our state's growing population. that put this measure on the ballot. We should expect local advisory days in California. Prop. 84 will help prevent toxic Is .funded entirely from existing revenues and will not i You have to read the text to believe it. communities to fund their own local parks and improvements; raise taxes. pollution from storm drains from contaminating coastal waters i .Only a very small portion of the funds from this enormous statewide bonds should be reserved for state parks,colleges, and endangering Will bring federal matching funds into California. g g Public°health. bond would be available for repair and maintenance of our and other capital projects that benefit the whole state. I YES on 84 ASSURES A RELIABLE WATER SUPPLY. Includes strict accountability provisions,including yearly independent audits and a citizen's oversight committee. supply, through conservation and other programs. levees, but Proposition 1E was placed on the ballot by the What is worse,this bond allows unelected,unaccountable Prop. will increase the reliability of . ver California'ss water PLEASE JOIN US IN VOTING YES on 84. Legislature to provide$4,090,000,000 for these same levees. state bureaucrats to spend billions of dollars, with little or y Common sense dictates that we should wait to see how that no real public oversight. Sacramento bureaucrats and special region in the state will benefit from this measure,while being Conservation groups, business organizations, and water given local control over specific projects to improve local districts ,across California support Prop. 84. For more money is spent before we authorize another$5,388,000,000 interests will love having a slush fund that they can spend water supply and water quality. information about the measure, please visit www. in new spending. It would be foolish to lock permanent without the need for public hearings and public votes in the YES on 84 PROTECTS OUR COASTLINE AND CleanWater2006.com. Your YES vote will help protect our spending formulas in place, as this initiative seeks to do, Legislature—but we cannot allow that to happen. CALIFORNANS NATURAL BEAUTY. health, economy, and quality of life now and in the years to i come. when we have no idea what our future needs will be once the Please join me in voting NO on Proposition 84. The measure will help clean and safeguard the ocean and - funds from Proposition 1E are spent. beaches all along California's coastline, including the San PROTECT CALIFORNIA'S DRINKING WATER, Diego, Santa Monica, Monterey, and San Francisco Bays. It LAND,COAST,AND OCEAN.Vote YES on 84. This bond represents a huge tax increase.The proponents BILL LEONARD,Member will also provide f for safe neighborhood parks and protect the seem eager to avoid this unpleasant fact, but voters need California State Board of Equalization rivers and lakes which we ei swim and fish. MARK BURGET,Executive Director to understand that bond repayment takes priority over all j YES on 84 PROTECTS AGAINST FLOODING. The Nature Conservancy , An earthquake or a series of major storms could damage LARRY WILSON,Chair our state's levees,causing dangerous flooding and potentially Board of Directors, Santa Clara Valley Water District leaving up to 23 million Californians without safe drinking E. RICHARD BROWN, Ph.D., Professor, School of PublicREBUTTAL 1 ARGUMENT AGAINST PROPOSITION 84 water. Health,University of California,Los Angeles 1 OR 1 • ' 1 ' 1 1 The opponent's argument is simply wrong. Proposition 84 is so important that water districts that Proposition 84 provides clean water and protects our coast provide drinking water to more than 23 million Californians PROPOSITION 84 CANNOT DELIVER ON ITS Bond funds can be awarded to the same private without raising taxes. It is supported by a broad, bipartisan all urge YES on 84. PROMISES organizations that placed this initiative on the ballot, coalition of public interest and business groups including the p g p g YES on 84:PROTECTS PUBLIC HEALTH It will not benefit everyone, but everyone will pay for campaigned for it,and bought advertising to promote it.This League of Women Voters of California, Los Angeles Area it'through higher taxes or budget cuts for education, law is a perversion of the initiative process. Conservancy. Prop. 84 removes dangerous contaminants from drinking Chamber of Commerce,and The Nature cleans u toxic chemicals that contaminate the fish we enforcement,and health services. NO on 84 SAVES MONEY FOR REAL FLOOD water, p NO on 84 PROTECTS THE•PUBLIC TREASURY CONTROL Here are the facts. eat,and keeps dangerous polluted runoff from flowing onto Prop. 84 gives state bureaucrats the power to spend Flood control is vital,but less than 15%of bond funds are • Prop. 84 funds crucial projects needed to assure reliable our beaches and into our coastal waters. our money without 'effective oversight. This proposal dedicated to that purpose—and that move could be chewed supplies of clean,safe drinking water. Y Y g P P P p Y YES on 84 protects our land,water,and public health,for P eliminates protections against corruption and favoritism in up for studies, environmental planning, environmental • Prop. 84 protects all of California's waters: our rivers,, mitigation, and bureaucratic administration. If bureaucratic lakes s our families and for future generations. current law and it bypasses our'competitive bidding system. S streams beaches,and bays.• It prevents audits b the State Controller, the State Auditor, reports could stop flooding,we'd no longer have a problem. Join local water districts, conservation organizations, P Y p p g� g p Prop.84 includes strict financial accountability,including i and even the Legislative Analyst. It exempts itself from PLEASE JOIN US IN VOTING NO on 84. g p business groups, and public health experts in voting YES I g Y P a citizen oversight committee annual independent audits g p , p p g the Administrative Procedures Act. Ask ourself why the on 84. I Y Y and full public disclosure. proponents fear routine audits. BILL LEONARD,Member •, Prop.84 protects our families from toxic pollution,floods, NO on 84 SENDS SACRAMENTO THE RIGHT California State Board of Equalization and other hazards through critical public safety projects ERICH PFUEHLER,California Director MESSAGE: WE NEED A RELIABLE WATER SUPPLY Clean Water Action RON NEHRING, Senior Consultant not funded by other measures. This water bond does not contain ANY funds for new Americans for Tax Reform JEFF KIGHTLINGER, General Manager reservoirs aqueducts,or water storage!The water diversions YES on 84: BENEFITS ALL CALIFORNIANS 'a qLEWIS K. UHLER President Metropolitan Water District of Southern California mandated by this bond will actually take away drinking � Prop. 84 funds local priorities to improve water quality water from current sources. National Tax Limitation Committee and supply in every region of the state. KAITILIN GAFFNEY,Conservation Director NO on 84 PROTECTS YOU FROM SPECIAL YES on 84: SUPPORTED BY CALIFORNINS LOCAL The Ocean Conservancy INTERESTS WATER DISTRICTS 52 1 Arguments#** Arguments printed on this page are the opinions of the authors and have not been checkedfor accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked far accuracy by any official agency. * *Arguments 153 PROPOSITION WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE WAITING PERIOD AND,PARENTAL NOTIFICATION BEFORE PROP j 85 TERMINATION OF MINOR'S PREGNANCY. TERMINATION OF MINOR'S PREGNANCYY, 85 INITIATIVE CONSTITUTIONAL AMENDMENT. INITIATIVE CONSTITUTIONAL AMENDMENT. OFFICIAL TITLE AND SUMMARY* * * Prepared by the Attorney General ANALYSIS.BY THE LEGISLATIVE ANALYST (CONTINUED) WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE Personal Written Notification. Written notice notification requirements. A court could do so if it TERMINATION OF MINORS PREGNANCY. could be provided to the parent or guardian finds that the minor is sufficiently mature and well- INITIATIVE CONSTITUTIONAL AMENDMENT., personally—for example, when a parent informed to decide whether to have an abortion or accompanied the minor to an office examination. that notification would not be in the minor's best • Amends California Constitution to prohibit abortion for unemancipated minor until 48 hours after interest. If the waiver request is denied, the minor notifies minor's parent or legal guardian,' except in medical emergency or with parental Mail Notification. A parent or guardian could be physician p g g � p g Y p � could appeal that decision to an appellate court. waiver. sent a written notice by certified mail so long as a • Permits minor to obtain court order waiving notice based on clear and convincing evidence of minor's return receipt was requested by the physician and A minor seeking a waiver would not have to maturity or best interests. delivery of the notice was restricted to the parent pay court fees; would be appointed a temporary • Mandates various reporting requirements, including reports from physicians regarding abortions 1 or guardian who must be notified. An additional guardian and provided other assistance in the case performed on minors. • Authorizes monetary damages against physicians for violation. 1 copy of the written notice would have to be sent by the court, and would be entitled to an attorney • Requires minors consent to abortion, with certain exceptions. at the same time to the parent or guardian by first- appointed by the court. The identity of the minor • Permits judicial relief if minor's consent coerced. class mail. Under this method, notification would would be kept confidential. The court would be presumed to.have occurred as of noon on the generally have to hear and issue a ruling within Summary of Legislative Analyst's Estimate of Net State.and Local Government Fiscal Impact: second day after the written notice was mailed. three business days of receiving the waiver request. • Potential unknown net state costs of several million dollars annually for health and social services Exceptions to Notification Requirements The appellate court would generally have to. hear and decide any appeal within four business days. programs, court administration, and state health agency administration combined. The measure provides the following exceptions to the notification requirements: The proposition also requires that, in any case in which the court finds evidence of physical, ® ANALYSIS BY THE LEGISLATIVE ANALYST Medical Emergencies. The notification sexual,or emotional abuse,the court must refer the requirements would not apply if the physician evidence to the county child protection agency. BACKGROUND PROPOSAL certifies in the minor's medical record that the abortion is necessary to prevent the mother's State Reporting Requirements In 1,953, a state law was enacted that allowed Notification Requirements death or that a delay would "create serious risk Physicians are required by this proposition to file minors to receive, without parental consent or This proposition -amends the California notification, the same types of medical care for Constitution to require, with certain exceptions, of substantial and irreversible impairment of a a form reporting certain information to the state a pregnancy that are available to an adult. Based a physician (or his or her representative) to notify major bodily function. Department of Health Services (DHS) within one on this law and later legal developments related the parent or legal guardian of a pregnant minor Waivers Approved by Parent or Guardian. month after performing an abortion on a minor.The to abortion, minors were able to obtain abortions at least 48 hours before performing an abortion DHS form would include the date and facility where p g A minor's parent or guardian could waive the without parental consent or notification. involvingthat minor. This measure does not the abortion was performed,the minor's month and ( notification requirements and the waiting period by In 1987, the Legislature amended this law require a physician or a minor to obtain the consent completing and signing a written waiver form for Year of birth, and certain other information about to require minors to obtain the consent of either of a parent or guardian.)This measure applies only the minor and the circumstances under which the q the physician. The parent or guardian must specify a parent or a court before obtaining an abortion. to cases involving an "unemancipated" minor. The abortion was performed.The forms that physicians on this form that the waiver would be valid either However,due to legal challenges,the law was never proposition identifies an unemancipated minor as would file would not identify the minor or any (1) for 30 days, (2) until a specified date,.or (3) implemented, and the California Supreme Court being a female under the age of 18 who has not until the minor's 18t" birthday. The form would parent or guardian by name. Based'on these forms, ultimately struck it down in 1997. Consequently, entered into a valid marriage, is not on active duty DHS would compile certain statistical information minors in the state currentlyreceive abortion in the armed services of the United States, and need to be notarized unless the parent or guardian delivered it personally to the physician. relating to abortions performed on minors in an services to the same extent as adults. This includes has not been declared free from her parents' or p Y p Y annual report that would be available to the public. minors in various state health care programs, such guardians'custody and'control under state law. Waivers Approved by Courts. The pregnant as the Medi-Cal health care program for low- A physician would provide the required minor could ask a juvenile court to waive the The courts are required by the measure to report income individuals. annually to the state Judicial Council the number notification in either of the following two ways: 541 Title and Summary/Analysis Analysis 1 55 For text of Proposition 85 seepage 145. PROP WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE PROP 85 TERMINATION OF MINOR'S PREGNANCY. TERMINATION OF MINOR'S PREGNANCY. 85 INITIATIVE CONSTITUTIONAL AMENDMENT. ' INITIATIVE CONSTITUTIONAL AMENDMENT. j ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) of petitions filed and granted or denied.The reports Savings and Costs for State Health Care State Health Agency Administrative Costs Social Services Program Costs E would be publicly available. The measure also Programs The DHS would incur first-year state costs of If this measure discourages some minors from requires the Judicial Council to prescribe a manner Studies of other states with laws similar to the one up to $350,000 to develop the new forms needed obtaining abortions and increases the birthrate of reporting that ensures the confidentiality of any proposed in this measure suggest that it could result to implement this measure, establish the physician among low-income minors, expenditures for cash a minor who files a petition. in a reduction in the number of abortions obtained reporting system, and prepare the initial annual assistance and services to needy families would f Penalties p g by minors within California. This reduction in report containing statistical information on increase under the California Work Opportunity abortions performed in California might be offset and Responsibility to Kids (Ca1WORKs)program. Any person who performs an abortion on a minor abortions obtained by minors. The ongoing state to an unknown extent by an increase in the number costs for DHS to implement this measure could be The magnitude of these costs, if any, would and who fails to comply with the provisions of the p of out-of-state abortions obtained by California probably not exceed a few million dollars annually. j measure would be liable for damages in a civil action as much as $150,000 annually. minors. Some minors might also avoid pregnancy The CalWORKs program is supported with both brought by the minor,her legal representative,or by as a result of this measure, further reducing the Juvenile and Appellate Court Administrative state and federal funds,but because all CalWORKs a parent or guardian wrongfully denied notification. number of abortions for this group. If, for either Costs federal funds are capped, these additional costs Any person, other than the minor or her physician, reason,this proposition reduces the overall number i The measure would result in increased state costs would probably be borne by the state. These`costs who knowingly provides false information that of minors obtaining abortions in. California; it is for the courts,primarily.as a result of the provisions would not be significant compared to total state notice of an abortion has been provided to a parent also likely that fewer abortions would be performed allowing minors to request a court waiver of the spending for CalWORKs, which is estimated to or guardian would be guilty of a misdemeanor under the Medi-Cal Program and other state health notification requirements. The magnitude of these cost about $5 billion in state and federal funds in punishable by a fine. care programs that provide medical services for costs is unknown, but could reach several million 2006-07. Under these circumstances, there could Relief From Coercion minors.This would result in unknown state savings i dollars annually, depending primarily on the also be a minor increase in child welfare and foster The measure allows a minor to seek help from for these programs. number of minors that sought waivers. These costs care costs for the state and counties. the juvenile court if anyone attempts to coerce her This measure could also result in some unknown j would not be significant compared to total state e to have an abortion. A court would be required to additional costs for state health care programs. If expenditures for the courts, which are estimated to consider such cases quickly and could take whatever this measure results in a decrease in minors be $2 billion in 2006-07. action it found necessary to prevent coercion. abortions and an increase in the birthrate of children in low-income families eligible for publicly funded FISCAL EFFECTS health care, the state would incur additional costs. These could include costs for medical services The fiscal effects of this measure on state provided during pregnancy, deliveries, and follow- government would depend mainly upon how these up care. new requirements affect the behavior of minors regarding ,abortion and childbearing. Studies of The net fiscal effect, if any, of these or other similar laws in other states suggest that the effect of related cost and savings factors would probably this measure on the birthrate for California minors not exceed costs of a few million dollars annually would be limited, if any. If it were to increase the to the state. These costs would not be significant birthrate for California minors, the net cost to the compared to total state spending for programs state would probably not exceed several million that provide health care services. The Medi-Cal dollars annually for health and social services Program alone is estimated to cost the state $13.8 billion in 2006-07. programs, the courts, and state administration combined. We .discuss the potential major fiscal j effects of the measure below. 561 Analysis*** ***Analysis 1'57 For text of Proposition 85 see page 145. L 'I MOP WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE PROP TERMINATION OF MINOR'S PREGNANCY TERMINATION OF MINOR'S PREGNANCY. 85 85 INITIATIVE CONSTITUTIONALAMENDMENT. * * * * * * INITIATIVE CONSTITUTIONAL AMENDMENT. ARGUMENTIN FAVOR OF PROPOSITION i PROPOSITION IN CALIFORNIA, a daughter under 18 can't get aspirin if she chooses, a minor may petition juvenile court DOCTORS AND NURSES, including the California Proposition 85's new bureaucratic rules WON'T GUARANTEE from the school nurse, get a flu shot, or have a tooth pulled to permit an abortion without notifying a parent. She can Medical Association, the California Nurses Association, that parents are notified.Who will sign for the mail?What happens ' without a parent knowing. request a lawyer to help her. If the evidence shows she is American Academy of Pediatrics-California 'District, when the mail is delayed, or the parents aren't home, or the teen BUT,'UNBELIEVABLY,"surgical or chemical abortions mature enough to decide for herself or that notifying a parent California Academy of Family Physicians,and the American intercepts the letter? can be secretly performed on minor girls—even 12 year- is not in her best interests,the judge will grant her petition. College of Obstetricians and Gynecologists-District IX The real answer to teen pregnancy is prevention and olds—without parents'knowledge. The proceedings must be confidential,prompt,and free. She California, STRONGLY OPPOSE PROPOSITION 85. caring families—NOT NEW LAWS THAT ENDANGER PARENTS are then not prepared to help young daughters may also seek help from juvenile court if she is being coerced They understand that while PARENTS .RIGHTFULLY OUR DAUGHTERS. I' Y an with the serious physical, emotional, or psychological b one to consent to an abortion. WANT TO BE INVOLVED IN THEIR TEENAGERS' AND PROPOSITION 85 IS NOT ABOUT PROTECTING Y LIVES, in the real world, SOME California TEENAGERS TEENS FROM OLDERMEN AND SEXUAL PREDATORS. complications which may result from an abortion or to protect POLLS SHOW most people support parental notification COME FROM HOMES where they can't talk to their parents, Clinics already provide counseling about responsible their daughters from further sexual abuse,,exploitation, and laws. They know that a minor girl—pregnant, scared, and where there is violence, or WHERE A FAMILY MEMBER behavior and report illegal activities. pregnancies. I possibly abandoned or pressured by an older boyfriend— HAS SEXUALLY ABUSED THEM. A study of over 46,000 pregnancies of SCHOOL-AGE GIRLS NEEDS the advice and support of a parent. Proposition 85 won't reduce teen pregnancy rates, THESE TEENS CAN'T GO TO THEIR PARENTS. can't force families to communicate, is complicated and in California found that over two-thirds were impregnated by PARENTS have invested more attention and love in raising They fear being kicked out of their homes,beaten,or worse. unworkable . . . and is not about predators—BUT IT WILL ADULT MEN whose mean age was 22.6 years. their daughter,know her personal and medical history better, Proposition 85 forces these teens to delay critical medical PUT GENERATIONS OF CALIFORNINS TEENAGERS Investigations have shown that secret abortions on minors and care more about her future than STRANGERS employed care or turn to self-induced or illegal back-alley abortions. AT RISK. in California are RARELY REPORTED to child protective by abortion clinics PROFITING from performing many Some will o across the border; some will suffer serious I p g � WE ALL MUST CARE enough about Proposition 85 -to � services although these pregnancies are evidence of statutory abortions on minors. injuries or even consider suicide. � g P g . Y � j VOTE NO because DEFEATING Prop. 85 is about KEEPING rape and sexual abuse. This leaves these girls vulnerable to A minor still has a legal right to obtain or refuse an abortion, ! PROPOSITION 85 PUTS THE HEALTH AND SAFETY OUR DAUGHTERS SAFE and PROTECTING THE RIGHT TO further SEXUAL ABUSE, RAPES,pregnancies, abortions, but a parent can help her understand all options, obtain OF TEENAGERS AT RISK. CHOOSE. and sexually transmitted diseases. competent care,and provide medical records and history. No law can mandate good family communication. The SUPPORTERS of Proposition 85—including the Traditional That's why more than ONE. MILLION SIGNATURES An informed parent can also get PROMPT CARE real answer.to teen pregnancy and abortion is strong, caring Values Coalition, Evangelicals for Social Action, and Right were submitted to allow Californians to vote on the"Parents' for hemorrhage; infections, and other possibly fatal ! families andcomprehensive sex education,includingabstinence. to Life of"Central California—ARE THE SAME PEOPLE Right to Know and Child Protection"/Proposition 85. complications. j But sadly, not all California teens live in homes with strong, WHO WANT TO OVERTURN ROE v. WADE and BAN PROP. 85 will require that doctors notify a parent or VOTE "YES" on PROPOSITION 85 TO ALLOW j caring families. ALL ABORTIONS. Despite what they say, Proposition 85 guardian at least 48 hours,before performing abortions on PARENTS TO CARE FOR AND PROTECT THEIR MINOR For OUR MOST VULNERABLE TEENAGERS—those ISN'T ABOUT PARENTAL RIGHTS; IT'S ABOUT THEIR minor daughters. DAUGHTERS' WELL-BEING,HEALTH, and SAFETY.1 who most need protection—PROPOSITION 85 PUTS THEM POLITICAL AGENDA. PARENTS AND DAUGHTERS in more than 30 other www.YESon85.net IN HARM'S WAY OR FORCES THEM TO GO TO COURT. Join PARENTS, DOCTORS, NURSES, PLANNED FORCING A SCARED, PREGNANT TEENAGER PARENTHOOD, and THE LEAGUE OF WOMEN states have benefited for years from laws like Prop.85.Many who can't go to her parents INTO CALIFORNIA'S VOTERS OF CALIFORNIA and VOTE NO on 85.For more times, after such laws pass, there have been substantial WILLIAM P.CLARK,California Supreme Court Justice(Ret.) I OVERCROWDED COURT SYSTEM WON'T WORK— information about REAL TEEN SAFETY, VISIT OUR .I • reductions in pregnancies and abortions among minors. • MARY L. DAVENPORT, M.D.,Fellow AND COULD CAUSE TEENS MORE HARM. Courts are WEBSITE,www.noon85.com. VOTE NO ON PROP. 85. When parents are involved and minors cannot anticipate American College of Obstetricians and Gynecologists already backlogged,there's a lot of red tape,and they are hard JACK LEWIN, M.D.,CEO,Californi4 Medical Association secret access to free abortions they more often avoid the reckless i to navigate,even for adults. behavior which leads to pregnancies. Older men,, including- PROFESSOR JOSEPH R. ZANGA, M.D., FAAP,Past President Think about it. The teen is scared,pregnant,herfamily might ROBERT L. BLACK, M.D. Internet predators,are deterred from impregnating minors when American Academy of Pediatrics be abusive. SHE DOESN'T NEED A JUDGE. SHE NEEDS A American Academy of Pediatrics,California District secret abortions are not available to conceal'their crimes. COUNSELOR AND GOOD MEDICAL CARE—WITHOUT KATHY KNEER,CEO DELAY. Planned Parenthood Affiliates of California REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 85 REBUTTAL.T1 ARGUMENT AGAINST PROPOSITION I' NO LAW CAN FORCE FAMILIES TO COMMUNICATE. For ninety years, Planned Parenthood has been a trusted When parents learn their daughter is pregnant,ALMOST LEFT VULNERABLE TO FURTHER HARM. Of course,parents rightfully want to be involved in their provider of quality healthcare.Caring staff counsel pregnant ALL RESPOND WITH LOVE AND SUPPORT. A parent of two young teenage daughters, GOVERNOR teenagers' lives,but in the REAL WORLD, some teenagers teens to talk to parents—and most do. PROPOSITION 85 OFFERS CLEAR BENEFITS TO ARNOLD SCHWARZENEGGER said it would be live in dangerous homes.Someparents are violent or sexually Planned Parenthood and other family planning clinics THE ULTIMATE OF BEING OUTRAGED . ." if YOUNG GIRLS: i abuse their daughters. COMPLY WITH ALL CALIFORNIA LAWS ON CHILD The parent can assist her daughter in selecting a doctor.Many someone took his daughter for a secret abortion. A IN THE REAL WORLD,Proposition 85: ABUSE REPORTING. To charge NOW that they protect • CHILD PREDATORS. Backers are criminals is ridiculous. DHHS's Office of Inspector abortion clinics employ doctors who have been disciplined OVER THIRTY STATES already have laws like WON'T STOP by the medical board for INCOMPETENCE,NEGLIGENCE, PROPOSITION 85, and THEIR EXPERIENCE SHOWS exploiting our fear of predators to advance their own General's recent investigation didn't find evidence of a CRIMINAL CONVICTIONS, OR SEXUAL MISCONDUCT. THESE LAWS REDUCE MINORS' PREGNANCY AND political agenda. single reporting violation. Many have been cited by health officials for UNSAFE ABORTION RATES WITHOUT DANGER AND HARM TO • WON'T REDUCE TEEN PREGNANCY. The San Jose MercuryNews says Proposition 85 is `PART MINORS. Y P CONDITIONS. • PUTS TEENS AT RISK. Scared, pregnant teens from OF LARGER STRATEGY TO CHIP AWAYAT LEGALIZED An informed parent can respond quickly to post-abortion Currently, the state PAYS FOR SECRET ABORTIONS abusive families won't go to court . . . but they may resort ABORTION IN THE UNITED STATES." complications. Abortion complications can result in FOR MINOR GIRLS. PUT PARENTS IN CHARGE, NOT to dangerous back-alley abortions—or even consider.suicide. Prop. 85 threatens teens . . . and a whole lot more. permanent injury, even death Teens who have secret THE GOVERNMENT! • MEANS DANGEROUS DELAYS IN CRITICAL VOTE NO. abortions often delay seeking treatment.PARENTS WHO VOTE "YES on PROPOSITION 85! PROTECT OUR MEDICAL CARE. The New England Journal of DON'T KNOW, CAN'T HELP. DAUGHTERS!See:www.YESon85.net Medicine reported that, after a law like this took effect, DONNA W. CHIPPS,Executive Vice President Parents who learn their daughters are victims of sexual PROFESSOR TERESA STANTON COLLETT,I.D. I some pregnant teens waited months to seek care, getting League of Women Voters of California assaults can intervene to protect them. Many abortion National Authority on Parental Notification and riskier second trimester abortions. BO GREAVES, M.D.,President providers CHOOSE NOT TO REPORT SEXUAL ABUSE, , Involvement Laws The California Supreme Court found "overwhelming" California Academy of Family Physicians abandoning these girls to FURTHER SEXUAL ABUSE. JANE E. ANDERSON, M.D., FAAP,Clinical Professor of evidence that similar laws in other states cause real harm to JEANNE A. CONRY, M.D.,Vice Chair www.ChildPredators.com teenagers and families. In the rare case of familial abuse, a court will permit a Pediatrics The American College of Obstetricians and Gynecologists, minor to obtain an abortion without notifying a parent—then .PROFESSOR JOSEPH R. ZANGA, M.D., FAAP,Past President Don't be misled. District IX California notify child protective services so she can be helped, NOT American Academy of Pediatrics 581 Arguments*** Arguments printed on this page are the opinions of the authors and have no(been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. **Arguments 159 • III PROPOSITION TAX ON CIGARETTES. . TAX ON CIGARETTES. PROP INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 86 l 86 I� OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) TAX ON CIGARETTES. Children's Health Care Coverage funds to pay for this health coverage. This program Medi Cal. The Medi-Cal Program (the federal has a caseload of about 3,000 children. I' INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Medicaid Program in California)provides health care In addition to the CHIM program, some counties services to low-income persons, including eligible have established their own health coverage programs • Imposes additional 13 cent tax on each cigarette distributed($2.60 per pack), and indirectly increases tax on other tobacco products. children(depending on the age of the child).Families_ for children that are ineligible for Medi-Cal or • Provides funding to qualified hospitals for emergency services, nursing education and health insurance to with incomes up to 133 percent of the federal poverty HFP. These programs are primarily supported with eligible children. level (FPL) (about $27,000 per year for a family of local funding. These programs serve about 69,000 • four)are generally eligible for coverage.The program children. Revenue also allocated to specified purposes including tobacco-use-prevention programs, enforcement of is administered by the state Department of Health tobacco-related laws, and research,prevention,treatment of various conditions including cancers (breast, Services (DHS). PROPOSAL cervical,prostate, colorectal),heart disease, stroke, asthma and obesity. • " Exempts recipient hospitals from antitrust laws in certain circumstances. Under the .Medicaid Program, matching federal This measure increases excise taxes on cigarettes � • Revenue excluded from appropriation limits and minimum education funding(Proposition 98)calculations. funds are available for the support of comprehensive medical services for United States citizens and to (and, as discussed below, indirectly on other tobacco Summaryof Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: "qualified aliens"—that is immigrants who are products) to provide funding for hospitals for g Y p permanent residents, refugees, or a member of emergency services"as well as programs to increase access to health insurance for children, expand • Increase in new state tobacco excise tax revenues of about$2.1 billion annually by 2007-08 declining slightly certain other groups granted the legal right to remain annually thereafter. Those revenues would be spent for various health programs, children's health coverage, and in the United States. Federal matching funds are nursing education, support various new and existing tobacco-related programs. health and education activities, curb tobacco use p g also available for nonqualified aliens, but only for • Unknown net state costs potentially exceeding$100 million annually after a few ears due to provisions and regulate tobacco sales. Major provisions of the � P Y g Y Y p emergency medical services. simplifying state health program enrollment rules and creating a new pilot program for children's health measure are described below. coverage. The Medi-Cal Program currently serves about 3.2 million adults and 3.2 million children. New State Tobacco Tax Revenues Unknown, but potentially significant, savings to the state Medi-Cal Program and counties from a shift of , children from other health care coverage to the Healthy Families Program(HFP);potential state costs that could Healthy Families. The Healthy Families Program A pack of cigarettes now�,costs roughly $4.00 be significant in the long term for ongoing support of expanded HFP enrollment. (HFP) offers health insurance to eligible children in California, including 87 cents in excise taxes. This measure increases the existing excise • Unknown,but potentially significant, savings in state and local government public health care costs over time in families who generally have incomes below 250 tax on cigarettes by $2.60 per pack effective : • due to various factors, including an expected reduction in consumption of tobacco products. percent of FPL (about $50,000 per year for a family January 2007. Existing state law requires the Board of four)who do not qualify for Medi-Cal.(Children in ANALYSIS BY THE LEGISLATIVE ANALYST some families with higher incomes are also eligible.) o Equalization to increase taxes on other t Funding is generally on a two-to-one federal/state tobacco products—such —su ch as loose tobacco and matching basis. Children in HFP must be eligible snuff—in an amount equivalent to any increase in BACKGROUND 25 cents to support tobacco education and United States citizens or qualified aliens.The HFP is the tax on cigarettes. Thus, this measure would also prevention efforts,tobacco-related disease research administered by the Managed Risk Medical Insurance result in a comparable increase in the excise tax on j Tobacco Taxes programs, health care services for low-income other tobacco products.All of the additional tobacco Board(MRMIB). Current state law imposes certain taxes directly on uninsured persons, and environmental protection revenues (including those on other tobacco products) cigarettes and other tobacco products that are know_ n and recreational programs, .enacted by the voters The HFP provides medical coverage for about would be used to support various new and existing as excise taxes. Excise taxes are taxes collected on as Proposition 99 in 1988. 781,000 children. programs specified in this measure. selected goods or services. Currently,the excise taxes 10 cents for the state General Fund. Local Health Coverage Programs. The County How Additional Tobacco Revenues Would Be total 87 cents per pack of cigarettes (with a similar 2'cents t o support research related to breast cancer Health Initiative Matching (CHIM) Fund program, tax on other types of tobacco products).The total tax which is administered by MRMIB and counties, Spent per pack consists of: and breast cancer screening programs for uninsured of 87 cents p p women. provides health coverage for children in families with Revenues from the excise tax increase would • 50 cents to support early childhood development Current taxes on,cigarettes and other tobacco an income between 250 percent and 300 percent of generally be deposited in a new fund called the FPL (between $50,000 and $60,000 per year for a Tobacco Tax of 2006 Trust Fund and would be programs, enacted by the voters as Proposition 10 products are estimated to raise about $1.1 billion in fied purposes, as shown in in 1998. 2006-07. family of four).The CHIM program relies on county allocated.for various speci funds .as the match required to draw down federal Figure 1 later in this analysis. 60 1 Title and Summary/Analysis,k** **.*Analysis 161 For text of Proposition 86 seepage 147 PROP TAX ON CIGARETTES. TAX ON CIGARETTES. PROP �{ 86 INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 86- ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST ccONTINUED> Backfrll of Proposition 10 Programs. An Additional Allocations. Funding would '. be unspecified amount of the additional ,excise tax allocated for the support of nonprofit community existing health programs related to certain diseases some of the new programs funded by this measure or conditions, including colorectal, breast, and would be exempted from state contracting rules for the revenues would be used to fully backfill Proposition clinics; to help pay for uncompensated health care 10 programs for early childhood development for a for uninsured persons provided by physicians; for cervical cancer; heart disease and stroke; obesity; first five years. loss of funding that would result from the enactment college loan repayments to encourage physicians and asthma. Oversight Provisions. This measure requires DHS of the new tax measure. This is because the tax to provide medical services to low-income persons Health and Disease Research Account. Under to prepare an annual report describing the programs I'. e measure, 5 percent of the funds that remained that received additional excise tax funding and how increases contained in this measure are (1) likely in communities with insufficient physicians; to the I',I to result in reduced sales of tobacco products and provide prostate cancer treatment services; and for after providing the backfill funding discussed above that funding was used: This information would be (2) could result in more sales of tobacco products services to assist individuals to quit smoking. would be allocated to a Health and Disease Research made available to the public by DHS on its Web site. for which taxes would not be collected, such as for Health Maintenance and Disease Prevention Account. This funding would be used to support Programs receiving these funds would be subject to smuggled products and out-of-state sales. This, in Account. Under the measure, 42.25 percent of the medical research relating to cancer in general and audit. New state committees would be established to turn, would reduce the amount of revenues collected funds that remained after providing the Proposition 10 breast and lung cancer in particular. In addition, it oversee the expansion of children's health coverage through the excise taxes imposed under would support research into tobacco-related diseases, and antiobesity programs. g - p 'Propositionbackfill funding would be allocated to a Health as well as the effectiveness of tobacco control efforts. 10.The amount of backfill payments needed to offset Maintenance and Disease Prevention Account. This Hospital Charges and Bill Collections. Hospitals an loss of funding for the Proposition 10 program Part of these funds would be used to support a y g p P g funding would be used for the purposes outlined below: that are allocated funds under this measure for would be determined by BOE. statewide cancer registry,a state program that collects emergency and trauma care services would be subject Children s Health Coverage Expansion. Almost data on cancer cases. Health Treatment and Services Account. Under to limits on what they could charge to certain patients one-half of these funds would be .allocated to the measure, 52.75 percent of the funds that remain expand the HFP to provide health coverage to Other Major Provisions in families with incomes at or below 350 percent of after providing the Proposition 10 backfill funding include (1) children from families with incomes In addition to the provisions that raise tobacco the FPL. These hospitals would also have to adopt would be allocated to a Health Treatment and Services between 250 percent and 300 percent of the FPL excise taxes and spend these same revenues, this written policies on their bill collection practices and, Account.This funding would be used for the purposes and (2) children from families with incomes up measure contains a number .of other significant under certain circumstances,x,could not send unpaid outlined below: to 300 percent of the FPL who are undocumented provisions,which are described below. bills to collection agencies, garaaish wages, or place • Hospital Funding. Nearly three-fourths of the immigrants or legal immigrants not now eligible Existing Funding for Physician Payments liens on the homes of patients as a means of collecting funds in this account would be allocated to hospitals for HFP. This measure requires MRMIB and Continued. In recent years,the state has spent almost unpaid hospital bills. Lo to pay their unreimbursed costs. for emergency 01DHS to simplify the procedures for enrolling and $25 million per year in Proposition 99 funds for Coordination of Medical Services by Hospitals. services and to improve or expand emergency keeping children in HFP and Medi-Cal coverage allocations to counties to reimburse physicians for- Subject to the approval of certain local officials, services, facilities, or equipment. Allocations and creates a pilot project to provide coverage for uncompensated medical care for persons who are hospitals receiving funding under this measure would uninsured children in families with incomes above would be based largely on the number of persons poor. This measure requires that this same level of -be allowed to coordinate certain medical services, that hospitals treat in their emergency departments 300 percent of the FPL. Proposition 99 funds be allocated annually in the including emergency services, with other hospitals. and their costs for providing health care for Tobacco Related Programs. These funds would future for this purpose. For example, hospitals would be permitted to jointly patients who are poor. Private hospitals and certain support media advertising and Ex enditure Rules. The funds allocated under share the costs of ensuring the availability of on- Expenditure p p pp g public relations public hospitals, including those licensed to the campaigns, grants to local health departments and p call physicians who provide emergency services. this measure would not be appropriated through the University of California(UC),would be eligible to other local organizations, and education programs annual state budget act and thus would not be subject The measure seeks,to exempt such coordination of receive funding. Hospitals licensed to other state for school children to prevent and reduce smoking. emergency services from antitrust laws that might to change by actions of the Legislature and Governor. limit or prohibit such coordination efforts. agencies or the federal government would not be Funding would also go to state and local agencies The additional revenues would generally have to be P eligible for funding. for enforcing laws and court settlements which used for the services noted above and could not take f ISCAL EfECTS • NursingEducation Programs.These funds would regulate and tax the sale of tobacco products. g the place of existing state or local spending.The state- be used to expand nursing education programs Also, some funds would be used to evaluate the and counties could not borrow these new revenues to This measure would have a number of fiscal effects in UC, California State University, community effectiveness of these tobacco control programs. use for other purposes,but they could be used to draw on state and local governments. The major fiscal college, and privately operated nursing education • Health and Education Programs. Part of these down additional federal funds.Contracts to implement effects we have identified are discussed below. programs. funds would be set aside for various new or 62 1 Analysis Analysis 163 �_ For text of Proposition 86 seepage 147 PROP TAX ON CIGARETTES. TAX ON CIGARETTES. PROP ' i INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 86 86 ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) Impacts on State and Local Revenues Effects on State General Fund Revenues. The (I1 Revenues Affected by Consumer Response. Our measure's increase in the excise tax would have FFIGURE 1 I' revenue estimates assume that the excise tax increase offsetting effects on state General Fund revenues. How Tobacco Tax Funds Would Be Allocated' of $2.60 per pack is passed along to consumers by On the one hand, the higher price and the ensuing Estimate of the distributors of tobacco products who actually a decline in consumption of tobacco products would Purpose Allocation 2007-08 Funding p y pay (Full Year in Millions) the excise tax. In other words, we assume that the reduce state General Fund revenues from the existing prices of tobacco products would be raised to include excise taxes. On the other hand, the state's General Backfill of California Children and Families First Trust Unspecified amount determined $180 Fund-Proposition 10 by Board of Equalization Fund sales tax revenues would increase because the the excise tax increase. This would result in various ' consumer responses. The price increase is likely to sales tax is based on the price of the tobacco product Health Treatment and Services Account 52.75 percent of remaining funds $1,015 result in consumers reducing the quantity of taxable plus the excise tax. The decreases in revenues would Hospital emergency and trauma care 74.50 percent of account $756 tobacco products that they purchase. Consumers approximately equal the increases in revenues. Nursing education programs 9.00 percent 91 could also shift their purchases si taxes would Effects on Local Revenues. Local governments Nonprofit community clinics 5.75 percent 58 not be collected on tobacco products, such as would likely experience an annual increase in sales California Healthcare for Indigents Program- 5.75 percent 58 through Internet purchases or purchases of smuggled tax revenues of as much as $10 million. reimbursement of emergency care physicians Tobacco cessation services 1.75 percent 18 products. Effects on Existing Tobacco Excise Tax Revenues. Prostate cancer treatment 1.75 percent 18 The magnitude of these consumer responses is The decline in consumption of tobacco products Rural Health Services Program-reimbursement of o.75 percent 8 emergency care physicians uncertain given the size of the proposed tax increase. caused by this measure would similarly reduce the College loan repayment program to encourage 0.75 percent 8 There is substantial evidence regarding the response excise tax revenues that would be generated for physicians to serve low-income areas lacking physicians of consumers to small and moderate tax increases . Proposition 99 and 10 programs and for the. Breast on tobacco products in terms of reduced tobacco Health Maintenance and Disease Prevention Account 42.25 percent of remaining funds $810 p Cancer Fund..We estimate that the initial annual Children's health coverage 45.50 percent of account $367 consumption. As a result, for small-to-moderate revenue losses are likely to be about$180 million for 69 increases in rice the revenue impacts can be estimated Heart disease and stroke program 8.50 percent J p p Proposition 10, about$90 million for Proposition 99, Breast and cervical cancer program 8.00 percent 65 with a reasonable degree of confidence. However, and less than$10 million for the Breast Cancer Fund. . • the increase in taxes proposed in this measure is Obesity, diabetes, and chronic diseases programs 7.75' percent 63 p p However, these losses would be more than offset in Tobacco control media campaign : 6.75 percent 55 substantially greater than that experienced previously. most cases by additional tax revenues generated by Tobacco control competitive grants program 4.50 percent 36 As a result; we believe that revenue estimates based this measure, as discussed below. Local health department tobacco prevention program 4.25 percent 34 on traditional assumptions regarding this consumer Asthma program 4.25 percent 34 response would likely be overstated. Therefore our. Impacts of New Programs on State and Local 4.25 p y � Colorectal cancer program percent 34 revenue estimates below assume a greater consumer Expenditures Tobacco prevention education programs 3.50 percent 28 response in terms of reduced tobacco consumption to State and local government expenditures for the Tobacco control enforcement activities 2.25 percent 18 this tax increase than has traditionally been the case. administration and operation of various programs Evaluation of tobacco control programs 0.50 percent 4 These estimates are subject to uncertainty, however, supported through this measure would generally Health and Disease Research Account 5.00 percent of remaining funds $95 given a variety of factors, including the large tax increase in line with the proposed increase in excise Tobacco control research 34.00 percent of account $32 changes involved. tax revenues. Figure 1 (see next page) shows the Breast cancer research 25.75 percent 24 Revenues From Tax Increase on To main purpose of the accounts established by the Cancer research 14.75 percent 14 Tobacco initiative the percentage of funds .allocated to each Products. We estimate that the increase in excise p g Cancer registry 14.50 percent 14 taxes would raise about$1.2 billion in 2006-07(one- purpose, and our estimate of the funding that would Lung cancer research 11.00 percent 10 half year effect from January through June 2007). It be available for each account in the first full year Total Allocations $2,100 would raise about $2.1 billion in 2007-08 first full- of tax collection. These allocations would probably / h tobacco tax increase are subject to uncertainty,the actual allocations to l cause the overall revenues from the t Y� decline in subsequent ears as excise tax revenues a fie year impact). This excise tax increase would raise q y programs could be greater or less than the amounts shown here. slightly declining amounts of revenues thereafter. also declined,potentially resulting in a corresponding Totals may not add due to rounding. 64 1 Analysis*** ***Analysis 165 I For text of Proposition 86 seepage 147. PROP TAX ON CIGARETTES. TAX ON CIGARETTES. PROP 86 INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. $6 ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * *ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) decrease in state and local expenditures for these new Breast Cancer Fund. No backfill funding g would � in the program to prevent this from occurring. If are eligible for, but not enrolled in, Medi-Cal and programs. be provided for the Breast Cancer Fund to offset actions were not taken to offset program costs at that HFP would be signed up for medical benefits and The state administrative costs associated with the the loss of revenues resulting from the tax increases point, however, additional state financial support for existing enrollees would continue to be served in tax provisions of this measure would be minor. proposed in this measure. However, this measure the program would be necessary. These potential these programs. would allocate a set portion of the new tax revenues long-term state costs are unknown but could be Impacts on Other Tobacco Tax-Funded for breast cancer research and breast cancer earl As noted earlier, this measure also directs the state y significant. to establish a pilot project to provide health coverage Programs detection services,with the result that these activities State and County Savings From Shift in for uninsured children in families with incomes above This measure would have a number of significant initially would likely experience a net gain of about fiscal effects on the three existing programs $80 million annually. Children's Coverage. This measure allows some 300 percent of the FPL.This would also increase state children now receiving health coverage in local health caseload costs. supported by tobacco excise taxes—Proposition 99 Revenues and Costs From' -Provisions; coverage programs, such as CHIM, to instead be (which supports various health and public resources The net fiscal effect of these provisions is an g Public Hosp itals itals enrolled in the expanded HFP. Also some'children p programs), Proposition 10 (which supports early increase in state costs that could exceed$100 million in low-income families receiving health care from ' childhood development programs), and the Breast Some of the hospital emergency services funding annually after a few years. Some of these costs provided under this measure could be allocated to counties without local health initiatives would be could be paid for using the new excise tax revenues Cancer Fund (which supports breast and cervical likely to become enrolled in HFP. These changes cancer ' screening and breast cancer research public hospitals licensed to state and local agencies, butpotentiallygenerated under this measure. programs). such as those run by UC, counties, cities, and health Would likely result in unknown, care districts.This and certain other provisions of the significant, savings on a statewide basis to local Potential State and Local Savings on Public Proposition 99. This measure does not directly measure could potentially result in increased revenues governments,particularly for counties. Health Costs backfill any Proposition 99 accounts for the loss of and expenditures for support of these hospital The Medi-Cal Program could also experience Currently, the state and local governments incur revenues that would be likely to occur as a result of operations. The magnitude of the fiscal effects of all some state savings for emergency services as some. costs for providing (1) health care for low-income the excise tax increase proposed in this measure. of these provisions is unknown, but is likely to result children would instead. receive their coverage for persons and (2) health insurance coverage for state Specifically, we estimate that this measure would in a net financial gain for hospitals operated by state these and other services through HFP. These savings and local, government employees. Consequently, initially result in~ an annual funding reduction of and local government agencies up to the low hundreds to the state could reach the tens of millions of,dollars changes in state law that affect the health of the about$5 million for the public resources account and of millions of dollars annually on a statewide basis. annually unless the state decided, as this measure general populace would affect publicly funded health : . initially almost$25 million for an account that can be permits, to have these children continue to receive care costs. Because this measure is likely to result in a �� roductsb f t ti h i d Impact on State and Counties From p a decrease n the consumption of p used to support any program eligible for Proposition Fiscal Im emergency services through Medi-Cal. 99 funding. Children's Coverage Provisions which have been linked to various adverse health Long-Term Increase in State Costs for Increased Net Increase in State Costs From Pilot Projects effects.,it would probably reduce state and local health However, while this measure would reduce HFP Enrollment. In the short term the revenues and Simplified Enrollment. This measure requires care costs over the long term. revenues for other Proposition 99 accounts, it would MRMIB and DHS to simplify the procedures for allocated by this measure to expand HFP would Some of the health programs funded in this also initially provide significant increases in funding probably exceed the costs to make additional children enrolling and keeping children in HFP and Medi-Cal in the new accounts created under this measure for p y coverage. For example, among other changes, these measure are intended to prevent individuals from eligible for health coverage. This would particularly experiencing serious health problems that could be activities comparable to those now funded through be the case in the early years as enrollment gradually provisions could allow applicants to self-certify costly to treat. To the extent that these prevention Proposition 99. This includes health education and their income and assets on their applications for y p A. excess revenues for expanding tobacco research, hospital services, and physician increased. Any coverage without immediately providing employer or efforts are successful and affect publicly funded services. In the a re to these activities could children s health coverage would be reserved to tax documents to verify their financial status. From health care programs, they are likely to reduce state gg g� support this same purpose in future years. and local government health care costs over time. In initially experience a net gain in funding of almost an administrative perspective, some changes that g $950 million if this measure were enacted. Over time, however, as the excise tax revenues simplified enrollment rules would reduce state costs, addition,the proposed expansion of these state health allocated for this purpose declined (for the reasons while others, such.as changes in computer systems programs could reduce county costs for providing Proposition 10. Proposition 10 would receive full mentioned above)and the number of children enrolled for enrollment activities, would likely increase state health care for adults and children in low-income backfill funding under the terms of this measure. We families. estimate that this backfill would initially amount to in HFP grew, the costs of the expanded HFP could costs. As regards caseloads, these changes are likely i about$180 million annually. eventually exceed the available revenues. Current to increase program enrollment and, therefore, costs The magnitude of state and local savings from these state law would permit MRMIB to limit enrollment for the state. This would occur because children who factors is unknown but would likely be significant. ' a 66 1 Analysis *** ***Analysis 167 For text of Proposition 86 seepage 147 PROP TAX ON CIGARETTES. TAX ON, CIGARETTES. PROP 86 IN CONSTITUTIONAL AMENDMENT AND STATUTE. * * * * * * INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 86 ARGUMENT IN FAVOR OF PROPOSITION : . ARGUMENT AGAINST PROPOSITION : . I , Smoking Kills. California Emergency Nurses Association VOTE "NO" ON PROPOSITION 86—STOP THE $2.1 oversight.There are NO GUARANTEES how the money will Public health experts agree:Taxing tobacco will save lives. Association of California Nurse Leaders BILLION TAX HIKE! actually be spent or assurances the money won't be wasted. j I The Tobacco Control Section of the California Department California Hospital Association We all want to improve our healthcare system, but PROP. 86:INCREASES OUR DEFICIT of Health Services.has issued an analysis of Proposition 86 League of United Latin American Citizens Proposition 86 is the wrong solution. Prop. 86 is an unfair tax California Black Health Network p g p Prop. 86 contains 38 pages of spending mandates. But titled `Economic and Health Effects of a State Cigarette Excise increase supported by special interests who are amending our experts agree that the amount of money raised by this tobacco N Tax Increase in California." Children Now Constitution to benefit themselves. tax will decline over time.Declining revenues and demands to G The California Department of Health Services has California Primary Care Association Prop. 86's proponents say it's about encouraging people not fund Prop. 86's programs will only worsen our deficit. Other Tobacco-Free Kids Action Fund determined that: to smoke,but it isn't.It's really a money grab by huge hospital important programs like education, transportation, and law Los Angeles Chamber of Commerce Proposition 86 Will Save Lives: corporations who will reap hundreds of millions of taxpayer enforcement might have to be cut,or taxes raised further. • Prevent nearly 180,000 deaths due to smoking among The initiative specifically raises the tax on apack ofcigarettes dollars each year! PROP. 86:INCREASES CRIME California kids now under the age of 17. by$2.60 to help fund some of California s critical healthcare • Less than 10% of the tax revenues go toward helping Law enforcement groups oppose Pro 86 because it will needs including emergency care services;health insurance for g p pp p • Prevent approximately 120,000 additional deaths due to g g Y smokers quit or keeping kids from starting. increase,crime and smuggling. Stolen and smuggled cigarettes children;nursing education;tobacco use prevention programs; gg g• gg g smoking among current California adult smokers who quit g p p g ' The largest share—almost 40%—goes to hospitals,many are already a big source of money for gangs and organized enforcement of tobacco-related laws;and research prevention, Y g Y g g g smoking. ' 'p ' of which are funding the campaign for the new tax. it Proposition 86 Will Reduce and Prevent Smoking: and treatment of serious health problems, including cancers, . HMOs will pocket millions from Prop. 86. crime.If Prop 86 passes,a sin cigarettes single truckload o f stolen ci heart diseases stroke asthma and obesity. could be worth over$2 million to criminals. • The tax increase alone would prevent more than 700,000 kids Y WHY ARE HUGE HOSPITAL CORRORATIONS PROP. 86: UNFAIR now under the age of 17 from becoming adult smokers. Proposition 86 includes tough financial safeguards, SPENDING MILLIONS TO PASS PROP. 86? includin annual detailed ublic re ortin of the use of tax Prop.86 taxes smokers to pay for programs that have nothing • 120,000 high school students and 30,000 middle school funds independent audits limits on administrative costs and a Hospitals wrote Prop;86 to give themselves an exemption to do with smoking, like obesity programs. Less than 10%of • students would either quit or not start smoking. strict prohibition against the Legislature raiding the trust funds to antitrust laws,giving them legal protection to divvy up the tax revenues go toward helping smokers quit or keeping More than half a million smokers in California would quit for any other government program.This means the money will and limit many medical services, and then raise prices kids from starting. smoking. without worr Prop. 86 puts no limits on what hospitals can bill ying about competition. • Californians would consume 312 million fewer acks of go exactly where voters intend. PROP. 86:LOCKED INTO OUR CONSTITUTION p cigarettes each year. This measure will sage lives.With smoking-related illnesses taxpayers for emergency services for the uninsured.Why Proposition 86 amends our Constitution and statutes.When Proposition 86 Saves Money: driving up our healthcare costs and overloading our healthcare should hospitals be allowed to charge taxpayers several problems and abuses are discovered,it will be nearly impossible • Nearly$16.5 billion saved in healthcare costs. system,Proposition 86 will help discourage smoking and ease times what they charge insurance companies for the same for the Governor or the Legislature to'fix them.The Constitution • Increases state revenue by over$2.2 billion per year. some of the problems caused by preventable, smoking-related treatment? should not be changed for a special interest money-grab. See the report for ourself at www. es ro 86.com. illnesses. Please join health ro essionals,lauen orcement,taxpayers, � P Y Y P P I PROP. 86.•ANOTHER LOTTERY MESS J P .r f That's why Proposition 86 is supported by abroad coalition, SAVE LIVES. TAX TOBACCO. VOTE YES ON Like the state lottery,it will be nearly impossible for voters and small businesses in voting NO on Proposition 86. including: PROPOSITION 86. g to know how the new taxes will be spent.Prop.86 lists program American Cancer Society after state program that gets a cut of the estimated$2.1 billion LARRY MCCARTHY,President American Heart Association CAROLYN RHEE,Chair in new tax revenue. California Taxpayers' Association., American Lung Association of California American Cancer Society,California Division PROP. 86:NO ACCOUNTABILITY TO TAXPAYERS JAMES G. KNIGHT, M.D.,Past President American Academy of Pediatrics/California Chapter P.K. SHAH, M.D.,President Prop. 86 throws millions of dollars at new bureaucratic San Diego County Medical Society The Children's PartnershipAmerican Heart Association Western States Affiliate • state programs without adequate legislative or governmental STEVEN REMIGE,President • • American College of Emergency Physicians,California . • Chapter TIMOTHY A. MORRIS, M.D.,Board Member Association for Los Angeles Deputy Sheriffs American Lung Association of California 1 . 1 • 1 ' 1 I : . REBUTTALI ' AGAINST PROPOSITION : . REBUTTAL TO ARGUMENT IN Helping people stop smoking and keeping kids from This amounts to an open taxpayer checkbook! Make no mistake;big tobacco corporations are bankrolling Read Prop. 86 for yourself. You'•ll see that it includes starting is important. Unfortunately, less than 10% of the There are no guarantees on how the money will be opposition to Prop.86. specific and tough financial safeguards, independent audits, $2.1 billion in new tax money goes to'programs that help spent. Raising cigarette taxes means fewer people will smoke— and strict limits on administrative costs. Funding is directed to proven,successful public health programs. 11 kids.That hurts tobacco company profits. P . P p g smokers quit or keep kids from starting.Here's what's really Under California law approved by voters (Proposition especially p y p in the initiative: 98), approximately 40% of any new taxes are dedicated They've seen the report by the California Department Californians pay more than$8 billion each year in medical of Health Services which says that Pro • Huge hospital corporations are spending millions to our schools.The huge hospital corporations don't want Y P• 86 will reduce the costs due to smoking—that's $700 per family per year— promoting Prop. 86 because they will pocket hundreds to share with our schools and kids, so they included a number of cigarettes sold in California by 312 million packs whether you smoke or not.The Department of Health Services of millions of dollars every year. HMOs will also get CONSTITUTIONAL EXEMPTION(Section 15)so that each year. report confirms that Prop. 86 will help reduce those costs. millions of dollars each year.. NONE of these funds will go to our schools. The report also says that Prop.86 will prevent 700,000 kids Big tobacco will do, say, and spend anything to defeat • Almost 40% of the $2.1 billion in new tax money Check it out for yourself: www.86facts.org. from starting to smoke and save 300,000 lives. Proposition 86.Don't-believe it. from Prop. 86 goes to hospitals—THAT'S OVER Prop. 86 is really about special interests amending our Tobacco companies invest over$1 billion a year marketing Save Lives.Reduce Smoking. $800 MILLION A YEAR THAT HAS VIRTUALLY .Constitution for their benefit. cigarettes in California. This is a market they wont give up Vote Yes on Proposition 86. NOTHING TO DO WITH STOPPING SMOKING p without a fight. • The$2.1 billion comes from an unfair$2.60 tax increase No on 86. When executives of the tobacco companies were called MILA GARCIA, R.N.,Member on each pack of cigarettes—an increase of almost 300%. before Congress and put under oath, incredibly, each and American Heart Association,Western States Affiliate Here's what-Prop. 86 is really all about: MONICA WEISBRICH, RN,Operating Room Nurse ever one of them lied b testifying that cigarettes are not JAIME ROJAS President Y Y Y g g WILLIE GOFFNEY, M.D., FACS,President • Section 9 gives hospitals an exemption to antitrust laws. addictive. American Cancer Society,California Division 2006-07 • There's nothing in Prop. 86 that limits what hospitals can California Hispanic Chambers of Commerce They lied to Congress under oath and now they're lying to RICK DONALDSON, Ph.D., RCP,Chair charge taxpayers for emergency services for the uninsured. MALCOLM SIMPSON,Public Schodl Teacher you. American Lung Association.of California i Their arguments against Prop. 86 are outright distortions and untruths. 681 Arguments yt** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. *Arguments 169 rRorosiTloN ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, PROP 87 INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. . INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. 87 INITIATIVE CONSTITUTIONAL AMENDMENT-AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. OFFICIAL TITLE AND SUMMARY * * * Prepared by the Attorney General * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) t PROPOSAL the full $70—yielding a tax of$4.20 per barrel. On the ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, other hand, it could be interpreted to apply on a marginal INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. Severance Tax on Oil Production in California. Beginning in•January 2007, the measure would impose a rate basis similar to the income tax. For example, if the INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. gross value is $70 per barrel, the first $10 is not taxed, severance tax on oil production in California to generate • Establishes$4 billion program with goal to reduce petroleum consumption by 25%,with research and production revenues to fund$4 billion in alternative energy programs the value from $10 to $25 is taxed at 1.5 percent, and so L. incentives for alternative energy,alternative energy vehicles energy efficient technologies,and for education and over time. (The term"severance tax"is commonly used to on—yielding a tax of$2.17 per barrel. gY � gY g� training. describe a tax on the production of any mineral or product In general, for a given period'of time, the single rate • Funded by tax of 1.5%to 6%(depending on oil price per barrel)on producers of oil extracted in California. taken from the ground,11 including oil.)The measure defines interpretation would generate twice as much tax revenue Prohibits producers from passing tax to consumers. "producers," who are•required to pay the tax, broadly to as would the marginal rate interpretation. The issue of • Program administered by new California Energy Alternatives Program Authority. include any person who extracts oil from the ground or the application of the tax would presumably be resolved • Prohibits,changing tax while indebtedness remains. water, owns or manages an oil well, or owns a royalty by regulations adopted by the California State Board of • Revenue excluded from appropriation limits and minimum education funding(Proposition 98)calculations. interest in oil. Equalization(BOE)and interpretation by the courts. The severance tax would not apply to federal offshore Passing Along the Cost of the Tax to Consumers. The Summary of Legislative Analyst's Estimate-of Net State and Local Government Fiscal Impact: production beyond three miles from the coast.The measure measure states that producers would not be allowed to pass • New state revenues—depending on the interpretation of the measure—from about$225 million to$485 million is unclear as to whether the severance tax would apply to oil on the cost of this severance tax to consumers through production on state-owned lands(which includes offshore increased costs for oil, gasoline, or diesel fuel. The annually from the imposition of a severance tax on oil production,to be used to fund$4 billion in new alternative production within three miles of the coast) or production BOE is charged with enforcing this prohibition against energy programs over time. Potential reductions of state revenues from oil production on state lands of up to$15 million annually;reductions on federal lands in the state. Additionally, the severance passing on the cost of the tax.While it may be difficult to • tax would not apply to oil wells that produce less than ten administratively enforce this provision (due to the many of state corporate taxes paid by oil producers of up to$10 million annually;local property tax reductions of a few million dollars annually;and potential reductions in fuel-related excise and sales taxes. barrels of oil per day, unless the price of oil at the well factors that determine oil prices), economic factors may head was above$50 per barrel.At current prices and levels also limit the extent to which the severance tax is passed of production,.the tax would apply to about 230 million along to consumers. For exampld; the global market for ANALYSIS BY THE LEGISLATIVE ANALYST barrels of oil produced in the state annually if state and oil means that California oil refiners have many options federal lands are included,or about 200 million barrels of for purchasing crude oil. As a result, oil refiners facing BACKGROUND was 674 million, barrels including oil produced p in oil production annually if they are not included. higher-priced oil from California producers could,at some point,find it cost-effective to purchase additional oil from California as well as outside the state. Of the total Tax Rate Structure. The measure states that the tax non-California suppliers, whose oil would not be subject California Oil Production. In 2005, California's oil refined in California,approximately 67 percent goes to would be"applied to all portions of the gross value of each estimated oil production (excluding federal offshore barrel of oil severed as follows:" to this severance tax. p ( g gasoline and diesel(transportation fuels)production. , production) totaled 230 million barrels of oil—an Term of the Tax. The measure directs that the new 01 i., Oil-Related Taxation in California.Oil producers pay the 1.5 percent of the gross value of oil from$10 to$25 per average of 630,000 barrels per day. California's California Energy Alternatives Program Authority state corporate income tax on profits earned in California. barrel 2005 oil production represents approximately (Authority), discussed below, shall spend $4 billion for 12 percent of U.S.production,making California the third Oil producers also pay a regulatory fee to the Department 3.0 percent of the gross value of oil from$25.01 to$40 specified purposes within ten years of adopting strategic largest oil-producing state, behind Texas and Alaska. Oil p p of Conservation (which regulates the production of oil in • per barrel; plans to implement the measure.The revenues are to be used production in California peaked in 1985 and has declined, the state)that is assessed on production,with the exception • 4.5 percent of the gross value of oil from$40.01 to$60 for new spending (that is, they cannot be used to replace on average,by 2 percent to 3 percent per year since then.In of production in federal offshore waters. This regulatory per barrel; and current spending). Under the measure, the Authority has fee is used to fund a program that among other activities • 6.0 percent of the gross value of oil from $60.01 per the ability to raise program funds in advance of collecting 2005,California oil production supplied approximately 37 p g percent of the state's oil demand,while Alaska production oversees the drilling,operation,and maintenance of oil wells barrel and above. severance tax revenues by selling bonds that would be paid in California.Currently,producers pay a fee of 6.2 cents per The wording of the measure regarding the a lication of back with future severance tax revenues. supplied approximately 21 percent,and foreign oil supplied g g g pp about 42 percent. barrel of oil produced,which will generate total revenues of the tax rates could be interpreted in two different ways.On The severance tax would expire once the Authority has $14 million in 2606-07. Additionally, property owners in one hand, it could be interpreted such that the tax would spent$4 billion and any bonds issued by the Authority are Virtually all of the oil produced in California is California pay local property taxes on the value of both oil be applied on a single rate basis on the full gross value of paid off.The length of time that the tax would be in effect delivered to California refineries. In 2005, the total extraction equipment(such as.drills and pipelines) as well' oil per barrel. For example, if the gross value is $70 per will depend on several factors,including the interpretation supply of oil delivered to oil refineries in California as the value of the recoverable oil in the ground. barrel,the tax would be applied at a rate of 6.0 percent on of the tax rate, the future price and production of oil, and 70 1 Title and Summary/Analysis*** ***Analysis 171 For text of Proposition 87 seepage 160. • I PROP ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, PROP 87 INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. 87 INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * *ANALYSIS BY THE LEGISLATIVE ANALYST (CONTNUED) 'on both future oil prices and oil production in the state.As various factors, including whether or not an oil producer decisions about using bonds. Because the measure directs severance tax revenues, would be allocated as follows, these variables are difficult to predict, there is uncertainty has taxable income in any given year, the amount of such the new authority to spend$4 billion-within ten years,the after first covering debt-service costs and expenses to as to the level of revenue collections. income that is apportioned to California, and the tax rate tax will be in effect at least long enough to generate this collect the severance tax: applied to such income. We estimate that-the reduction amount of revenue and longer if bonds are issued. State and Local Administrative Costs to Implement would likely not exceed$10 million statewide annually. •Gasoline and Diesel Use Reduction Account (57.50 the Measure. Because programs of the size and type to be Depending on these variables,the term of the tax would Percent)—for incentives (for example, consumer loans, overseen by the Authority have not been undertaken before Potential Reduction in State Revenues From Oil range from less than ten years to several decades. For grants, and subsidies) for the purchase of alternative fuel in the area of transportation fuels,the administrative costs Production on State Lands.The state receives a portion of example, the shorter period would result under the single vehicles, incentives for producers to supply alternative to the Authority to carry out the measure are unknown. the revenues from oil production on state lands, including tax rate and/or higher oil prices and production levels. fuels, incentives for the production of alternative fuel Under the provisions of the measure, up to 2.5 percent oil produced within three miles of the coast.If the measure Alternatively, a longer period -would result under the infrastructure (for example, fueling stations), and grants of revenues in the new fund would be available to the is interpreted to apply to production on these state lands, marginal tax rate and/or lower oil prices and production. and loans for private research into alternative fuels and Authority for its general administration costs.This would then the severance tax would,reduce state General Fund alternative fuel vehicles. on average set aside from about$5 million to $12 million revenues by$7 million to$15 million annually,depending Tax Revenues to be Deposited in New Special Fund. The proceeds of the severance tax would be deposited in •Research and Innovation Acceleration Account annually for administration.The amount of administrative on whether the measure is interpreted using the marginal a new fund created by the measure,the California Energy (26.75 Percent)—for grants to California universities funds available would depend both on(1)whether the tax rate or the single rate. to improve the economic viability and accelerate the was interpreted using the marginal rate interpretation or the Independence Fund.These revenues would not be eligible p y Potential Reductions in Fuel.Excise Tax and Sales for loan or transfer to the state's General Fund and would commercialization of renewable energy technologies and single rate interpretation and(2)whether oil production on Tax Revenues.The measure could change both the amount be continuously appropriated(and thus, not subject to the energy efficiency technologies. state and federal lands is taxed. and mix of fuels used in California, and thus excise and annual state budget appropriation process). •Commercialization Acceleration Account (9.75 Costs to BOE to collect the severance tax and sales tax revenues associated with them.,For example, to Reorganized State Entity to Spend the Tax Revenues. Percent)—for incentives to fund the start-up costs and administrative costs associated with the issuance the extent that the programs funded by the measure are The measure would reorganize an existing body in state accelerate the production and distribution of petroleum and repayment of bonds by the Treasurer's Office are successful in reducing the use of oil for transportation government, the California Alternative Energy and reduction, renewable energy, energy efficiency, and not counted as part of the Authority's administration fuels,it would reduce to an unknown extent the amount of alternative fuel technologies and products. budget and are to be paid from the severance tax gasoline and diesel excise taxes paid to the state and the Advanced Transportation Financing Authority, into a revenues.Additionally,in oil-producing counties,local sales and use taxes paid to the state and local governments. new California Energy Alternatives Program Authority •Public Education and Administration Account(3.50 ° administrative costs would increase by an unknown but These reductions would be partially offset by increased (Authority).This reorganized authority would be governed Percent)—for public education campaigns, oil market ! , by a board made up of nine members, including the. monitoring,and general administration.Of the 3.5 percent, probably minor amount,due to increased reassessment taxes paid on alternative fuels, such as ethanol, to the activity by local property tax assessors to account for extent that the measure results in their increased use. Secretary for Environmental Protection, the Chair of the at least 28.5 percent must be spent for public education, the effects of the severance tax on oil-related property State Energy Resources Conservation and Development leaving a maximum of 71.5 percent of the 3.5 percent(or Potential Indirect Impacts on the Economy.In addition roughly 2.5 percent of total revenues for the Authority's values. to the direct impacts of the measure, there are potential Commission, the Treasurer, and six members of the g Y p ) ty p public who have specific program expertise, including: administrative costs. Reduction in Local Property Tax Revenues. Local indirect effects of the measure that could affect the level of economics, public health, venture capital, energy Vocational Training Account(2.50 Percent)—for job property taxes paid on oil reserves would decline under economic activity in the state. efficiency, entrepreneurship, and consumer advocacy.The the measure relative to what they otherwise would have training at community colleges to train students to work On one hand,by increasing the cost of oil production,the Authority is required to develop strategic plans and award with new alternative energy technologies. been, to the extent that the imposition of the severance severance tax could reduce production,reduce investment funds to encourage the development and use of alternative tax reduces the value of oil reserves in the ground and its in new technologies to expand production,and/or modestly energytechnologies. The board would appoint a staff to assessed property value for tax purposes. Although the g pp FISCAL EFFECTS increase the cost of oil products to Californians.This could � administer various programs specified in the measure. exact size of this impact would depend on future oil prices, , p g p have a negative impact on the state's economy. � One of the stated goals of the measure, to be achieved New State Revenues to Be Used for Dedicated which determine both the severance tax rate and the value Purposes. Our estimates below are based on 2005 oil of oil reserves, it would likely not exceed a few million On the other hand, using revenues from the severance through the various programs funded by it,is to reduce the j dollars statewide annually. tax to invest in new technologies may spur economic use of petroleum in California by 25 percent from 2005 production levels and the average price of oil for the first development in California.This would occur to the extent levels by 2017.'The actual reduction would depend on the six months of 2006. The severance tax would rise from Reduction in State Income Tax Revenues. Oil that new technologies supported by the measure are about $225 million to $485 million annually. The level of producers would be able to deduct the severance tax extent to which the measure was successful in developing p developed and/or manufactured in the state. This could revenue generated would depend both on (1) whether the from earned income, thus reducing their state income and promoting—and consumers and producers used—new have a positive impact on the state's economy. technologies and energy efficient practices. tax was interpreted using the marginal rate interpretation tax liability under the personal income tax or corporation or the single rate Iinterpretation and (2) whether oil tax. The extent to which the measure would reduce state Taken together, these economic factors could have Allocation of Funds. The funds generated from the production on state and federal lands is taxed. However, income taxes paid by oil producers would depend on mixed impacts on state and local tax revenues. I severance tax, as well as any bonding against future actual revenues collected under the measure will depend 1 ***Analysis 173 72 1 Analysis*** For text of Proposition 87 seepage 160. PROP LTER-NATIVE ENERGY. RESEARCH, PRODUCTION, ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, PROPINCENTIVES. TAX 87 INITIATIVE CONSTITUTIONAL OIFORNIA NAL AMEOIL NDMEONTT AND STATUTE. * * * INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. 87 * * * IN ITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. FAVORARGUMENT, IN 1 PROPOSITION ARGUMENT AGAINST PROPOSITION YES ON 87:MAKE OIL COMPANIES PAY THEIR FAIR PROP., 87: CLEANER ENERGYAND CLEANER AIR. AREN'T GAS PRICES HIGH ENOUGH ALREADY? itself from that requirement; One of California's leading SHARE—FOR CLEANER ENERGY. Prop. 87 makes oil companies pay for cleaner energy. DO WE REALLY WANT TO INCREASE OIL TAXES education finance experts and the former Secretary of if Had enough of oil companies charging outrageous prices It provides for cash rebates to consumers who-buy cleaner, BY ANOTHER$4 BILLION? Education reports: At a time when California school funding f and making obscene profits? alternative fuel vehicles and incentives for more renewable We all agree we need to advance alternative energy. is already below the national average, Prop. 87 could deny Had enough polluted air,asthma,lung disease,and cancer? energy like solar and wind power. But, Proposition 87 is-not the way to get there. Increasing schools their fair share of up to$1.9 billion to new revenues Had enough of oil companies funding opposition to Cleaner, It will create thousands of new jobs and economic growth. California oil taxes by $4 BILLION to fund a new state over the next 10 years. Cheaper Energy?Enough is enough. It will reduce our de endence on oil from Saudi Arabia and bureaucracy—that isn't even required to produce results—is PROP. 87 WOULD REDUCE TAX REVENUES USED P a recipe for waste,not progress. FOR EDUCATION, PUBLIC SAFETY, HEALTH CARE, It's time to make oil companies pay their fair share so we Iraq—which provide 47%of California's imported oil. It's also the road to more problems AND TRANSPORTATION NEEDS. can use cheaper alternative fuels and reduce air pollution that Voting YES on Prop. 87 will reduce air pollution in • • Pro 87 would reduce general fund and property tax causes lung disease and cancer. California. ' HIGHER TAXES ON DOMESTIC OIL = MORE p g p p Y revenues.Read the Legislative Analyst's report in your voter DEPENDENCE ON FOREIGN OIL. VOTING YES ON PROPOSITION 87 WILL MAKE OIL Pollution from cars and trucks is making us sick. Every pamphlet. COMPANIES PAY THEIR FAIR SHARE. Economists report that taxing California oil production will year,cars put tons of lung-damaging smog and soot into the air reduce in-state oil production and increase our dependence on HIGHER GAS PRICES HURT FAMILIES, SMALL In Louisiana, Alaska, and even Texas, oil companies pay that send children to the hospital and cause asthma attacks. foreign oil.Oil from the Middle East and other countries costs BUSINESSES,AND SENIORS. billions in oil drilling fees, but they pay almost nothing in That's why the Coalition for Clean Air and California more to get here and costs more to refine once here. Everyone bears the cost of high gas prices.The last thing we California. California takes in more revenue from hunting and doctors and nurses ALL SUPPORT Proposition 87. HIGHER OIL TAXES, HIGHER GAS PRICES. need is a ballot proposition that further drives up oil prices. fishing licenses than it does from oil drilling fees. PROP. 87:NO NEW BUREAUCRACY. EVERYONE AGREES WE NEED TO ADVANCE Prop.87's sponsors claim it won't increase_ gas prices.Are Under Prop. 87, the oil companies will finally pay us the Prop. 87 uses an existing state agency and requires strict voters supposed to believe a $4 BILLION tax increase on ALTERNATIVE ENERGY, BUT PROP. 87 IS NOT THE same level of fees they pay in other states. enforcement and accountability through independent audits, California oil won't impact gas prices at the pump? WAY TO GET THERE. They can afford it. The oil companies opposing this public hearings,and annual progress reports. PROP. 87 CREATES A NEW STATE BUREAUCRACY "Gasoline prices in California are high enough already. initiative made $78 billion in profits last year. Their profits ust add insult to injury. This $4 Nobel-prize-winning scientists, California environmental WITH 50 POLITICAL APPOINTEES. Proposition 87 would j are so high that EXXON gave its CEO Lee Raymond a$400 and consumer groups,educators, labor and agriculture groups It lets them spend taxes,outside the normal checks and billion oil tax would result in even higher gas prices million retirement payout. Enough is enough. all agree.It's time we take control of our future. balances that govern other state agencies, outside the state at the pump. We recommend drivers vote: NO on 87." PROP. 87: NO COST TO CONSUMERS. OIL budget review process,and exempt from important laws and —Thomas V. McKernan, President and CEO, For Cleaner Air—For Alternative Energy Choices—For g p p p. Automobile Club of Southern California COMPANIES PAY. Less Dependence on Foreign Oil . . . Finally,Fairness. taxpayer safeguards that apply to other agencies. Join more than 150 organizations, taxpayer groups, California's Attorney General has confirmed that Prop. 87 MAKE OIL COMPANIES PAY THEIR FAIR SHARE. PROP. 87 LETS THE NEW BUREAUCRACY KEEP consumers, California businesses, labor,parents, educators, makes it illegal for oil companies to raise gas prices to pass SPENDING EVEN IF THEY'RE NOT PRODUCING VOTE YES ON 87. FOR CLEANER ENERGY seniors,and public safety.officials . . . f along the cost to us. f p notor waste,e RESULTS. VOTE NO on 87.It's a recip rog ress. If they do,they'll break the law and could be prosecuted. www.YESon87.com It lets the political appointees tax and spend, year after The U.S. Su reme Court has already ruled that states year after year,even if they're making absolutely no progress LARRY McCARTHY,President . p Y LAURA KEEGAN BOUDREAU CEO reducing oil consumption or advancingalternative energyuse. can prohibit oil companies from passing fees like this on to American Lung Association of California PROP. 87 ROBS SCHOOLSOF THEIR FAIR SHARE California Taxpayers Association consumers. Just look at the other statess that have oil drilling DANIEL CUNNINGHAM,President fees.They all pay less for gas than California. WINSTON HICKOX,Former Secretary OF NEW REVENUES. That's why oil companies are spending millions to defeat California Environmental Protection Agency One of the most important protections our schools have California Small Business Alliance Prop. 87. because they know it's illegal to pass the cost on to us. JAMIE COURT,President is a constitutional guarantee that a portion of new state tax MARIAN BERGESON,Past President revenues be spent in the classroom. But, Prop. 87 excludes California School Boards Association Foundation for Taxpayer and Consumer Rights REBUTTAL 1 ARGUMENT IN FAVOR OF PROPOSITION 1 ARGUMENT AGAINST PROPOSITION • "The sponsors'contention that Proposition 87 would not —50 political appointees. DO YOU TRUST THE OIL COMPANIES? L.ESS DEPENDENCE ON FOREIGN OIL. • cause highergaspricesisincorrect."—William Hamm,Ph.D. —Unlimited staff. Oil companies are paying for the multimillion dollar Almost half of California's imported oil comes from Saudi Former Legislative Analyst, State of California —The power to spend $4 billion outside the state budget misinformation campaign against Prop. 87. Arabia and Iraq. Prop. 87 would reduce our dependence on "Proposition 87 attempts a worthy goal, but does so in review process. See for yourself:California State Website:www.cal-access.ss.ca.gov foreign oil. That's why former Secretary of State Madeleine a counterproductive and costly manner. It would shrink —No requirement they spend all those new taxes in Notice the oil companies didn't sign the statement at the top of Albright endorses Prop. 87. California's oil supply, increase dependence on orei n California,or even in the U.S. PROP. 87 HAS NO NEW BUREAUCRACY. p f g this page?What else are they hiding?THE FACTS: oil, and result in higher gasoline prices."—Professor —Special exemptions from laws designed. to protect Prop. 87 requires independent audits, strict limits on PhilipRomero Ph.D., Former Chief Economist, California taxpayers. PROP. 87 MAKES OIL COMPANIES PAY THEIR FAIR administrative spending, o en meetings with accountability, p g Y, Governor's Office' —Special exemption from California's education funding SHARE. and oversight by public health and energy experts—not Proposition 87 is not a tax on' oil company profits—as guarantee,robbing schools of their fair share. Oil companies pay billions in drilling fees in New Mexico, politicians.Official Initiative Language,§26004(a) proponents would like you to believe. It's a$4 BILLION TAX Proposition 87 also reduces revenues available for fire Alaska,Louisiana,and even Texas.California is the only DON'T BE FOOLED BY THE OIL COMPANIES. on California oil production. It would make California's oil protection and public safety. state where the oil companies do not pay similar drilling ENOUGH IS ENOUGH.MAKE THE OIL COMPANIES the highest taxed in the nation, by far.Analysts report it would Organizations representing 85,000 public'safety officials fees. PAY 87 MAKES IT ILLEGAL FOR OIL COMPANIES PAY THEIR FAIR SHARE. decrease state oil production.Replacement oil would have to be urge Californians to:VOTE NO on 87. TO PASS THE COST ON TO CONSUMERS BY RAISING VOTE YES ON 87. FOR CLEANER, CHEAPER imported from the Middle East and elsewhere.The added costs GAS PRICES. Official Initiative Language, §42004(c) ENERGY. of.transporting and refining imported oil would be lawfully KEVIN R. NIDA,President Think about it: If the oil companies could really pass the passed on to consumers at the gas pump. Do we really want California State Firefighters' Association cost on to us,why would they be spending millions to defeat DR. MARIO MOLINA,Nobel Prize in Chemistry higher gas prices? RAY HOLDSWORTH, Past Chair Prop. 87? University of California, San Diego And, did proponents really claim Proposition 87 is not new California.Chamber of Commerce PROP. 87 MEANS CLEANER AIR,LESS ASTHMA. TIM CARMICHAEL,President Coalition for Clean Air bureaucracy? Its the very definition of bureaucracy, with an That's why Prop. 87 is endorsed by the American Lung appalling lack ofaccountability: ALLAN ZAREMBERG, President Association. RAMIE COURT,President Californians Against Higher Taxes PROP. 87 MEANS MORE ALTERNATIVE FUELS AND Foundation for Taxpayer and Consumer Rights 741 Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. ** Arguments 175 PROPOSITION EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. PROP INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. gg86 ; OFFICIAL TITLE AND SUMMARY * * * Prepared by the Attorney General * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) Creates a Statewide $50 Parcel Tax allocated to school districts,public charter schools, EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. and count offices of education using a .new per INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. The measure adds a new section to the State y g Constitution that establishes an annual $50 tax student formula to be created by the Legislature. • Provides additional public school funding for kindergarten through grade 12. on most parcels of land in California. (This dollar' The formula likely would provide higher per • Funded by $50 tax on each real property parcel. amount would not change over time.) For purposes student funding rates for higher-eost students. • Exempts certain elderly-and disabled homeowners. of the measure, a "parcel" is defined as any unit (Specifically, the formula is to account for cost • Funds must be used for class size reduction, textbooks, school safety,Academic Success facility of real property in the state that currently receives differences resulting from students' disabilities, grants, and data system to evaluate educational program effectiveness. a separate local property tax bill. This definition English language skills, or socioeconomic status.) • Provides for reimbursement to General Fund to offset anticipated decrease in income tax revenues due would result in the vast majority of individuals and Facility grants would be allocated to school districts to increased deductions attributable to new parcel tax.. businesses that currently pay property taxes being • Requires school district audits, penalties for fund misuse. and public charter schools using a flat funding subject to the new parcel tax.The measure exempts • .Revenue excluded from minimum education funding (Proposition 98) calculations. from the new tax any parcel owner who: (1)resides rate (capped at $500) for each student enrolled on the parcel, (2) is eligible for the state's existing in certain schools performing above average. For Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: homeowner's property tax exemption, and (3) is the data system, the measure does not specify how • State parcel tax revenue of roughly $450 million annually, allocated to school districts for specified either 65 years of age or older or a severely and or to whom funding would be allocated. (Future education programs. permanently disabled person. legislation likely would be needed clarifying such The measure also includes a provision that issues.) School districts receiving any Proposition ANALYSIS BY THE LEGISLATIVE ANALYST ensures funding for other government programs is 88 funds would be required to conduct an annual not affected. Specifically, the measure authorizes independent audit showing how they spent these BACKGROUND this type of tax, the amount owed is typically the a transfer of parcel tax revenue to the state General monies and post the audit reports online. Fund to offset any loss in state income tax revenue, same for each parcel--or unitof land. (Currently, A loss would occur because of additional property- FIGURE 1 State and local governments in California impose state government, does not impose either type of several types of taxes and use the resulting revenue related deductions resulting from the state parcel tax. : : •. rcel Tax Revenues property-related tax.) Program Annual Target Amount to support a variety of government activities. Funds S Specific K-12 Education Pro rams i; g The most significant state taxes are on personal Use of Local Parcel Tax Revenue. Local parcel p g (In Millions): income, the sale of most types of goods (such as tax revenue may be used for virtually any designated With Tax Proceeds cars, appliances, and furniture) and corporate purpose. In recent years, for example, parcel taxes Most of the revenue generated by the statewide K-12 class size reduction $175b pA P Instructional materials 100b have been approved b voters in several school parcel tax would be transferred to a new state profits.At the local level,the most significant tax is. pp y School safety 100, on the assessed value of property such as famil - districts and used to fund class size reduction(CSR), special fund. Of the monies initially deposited in p p ty ( y Facility grants 85c school libraries education technology, and other this fund, the measure allocates $470 million for d owned land and houses,retail stores, and industrial gyp Data system 10 facilities).In California,the revenue generated from education programs.In those school districts that have various K-12 education programs and initiatives,as these various taxes is used to fund many types of a parcel tax, this revenue can be a significant source shown in Figure 1.The annual allocation of funding government programs, including education,health, of funding for kindergarten through grade 12 (K-12) would be adjusted on a proportional basis—up. or social, and environmental programs. education programs. Statewide, however, the parcel down—to reflect actual revenues received. These a Amounts adjusted annually,on a proportional basis,to reflect actual tax is a minor source of funding for school districts. monies would have to supplement existing monies revenues available.School districts,county offices of education,and public charter Local Property Taxes. Local governments in provided for these programs. schools would be eligible to receive funding.Funding to be distributed California impose a tax based on the assessed using a weighted per student formula. PROPOSAL. 'School districts and public charter schools meeting certain criteria value of property. Under such a tax, the amount The measure allocates monies to school districts would be eligible to receive funding.Funding to be based on an equal + I (and other local education agencies) in various per student amount that is capped at$500. owed increases as the value of the property Proposition 88 creates a statewide parcel tax dThe measure does not specify how or to whom funds would be increases. Some local governments also impose a and uses the resulting revenue to fund specific K-12 ways.The bulk of funding(amounts for K-12 CSR, distributed. type of property tax known as a parcel tax. Under education programs. It would take effect July 1, 2007. instructional materials,and school safety)would be 76 1 Title and Summary/Analysis** ***Analysis 177 For text of Proposition 88 see page 169. PROP EDUCATION FUNDING. REAL-PROPERTY PARCEL TAX. EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. PROP INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 88 i � ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) K-12 CSR. Currently, the state provides $1.8 $85 million provided by this measure would be would be transferred annually to the state General would be allocated to schools for the specified billion for the CSR program for kindergarten . for school districts and charter schools that have Fund to offset a projected decline in state income education programs. These revenues likely would through grade 3 (K-3). This program funds not yet received any state general obligation bond tax revenues (due to increased property-related be somewhat less than that needed to meet the school districts for reducing the size of their K-3 monies for school facilities. In addition, charter tax deductions). In addition, the measure sets measure's designated funding levels. If so, the classrooms to no more than 20 students. The schools are only eligible if they are governed by or aside no more than 0.2 percent (or approximately program'allocations would be adjusted downward additional $175 million provided by this measure operated by a nonprofit public benefit corporation. $1 million annually) for county administration of proportionally. could be used to further reduce class size in grades If those conditions are met, then school districts the parcel tax. The remainder of new tax revenue K-3 or for any other CSR initiative. For example, and charter schools would receive funding for each the funds would be sufficient to reduce the average student enrolled in a school ranking in the top 50 class.size of fourth grade by about four students percent based on the state's standardized test scores. (reducing it from a statewide average of about 29 They could use the grants for any general purpose. students to 25 students). Districts and schools receiving such grants would Instructional Materials. Currently, the state be prohibited from receiving future state general provides over $400 million annually for instructional obligation bond monies unless the bond expressly material purchases. This equates to about $66 per allowed them to receive such funding. We estimate K-12 student.This is sufficient to purchase one new that about 40 noncharter schools (serving less than j core textbook for most students in most grades each 1 percent of all noncharter enrollment) would be school year. The additional $1.00 million provided eligible for grants. For charter schools,we estimate by this measure could be used for purchasing any about 100 schools (serving about 25 percent of all. textbooks or other instructional materials that were charter enrollment) would be eligible for grants. approved by the State Board of Education. Funds Data System. Currently, the state .,provides ' likely would be sufficient to provide about 25 virtually no state funding expressly for the percent of K-12 students with one additional core ongoing collection and maintenance of student- textbook each year. level and teacher-level data. The additional $10 School Safety. Currently,the state provides$548 million provided by this measure would be for million (or about $90 per student) for after,school an integrated longitudinal data system. Such a programs, $97 million (or about $40 per grade 8— system would allow the state to measure student 12 student)for general school safety programs, and and teacher performance over time. The measure $17 million(or about$3 per student)for competitive requires school districts to collect and report the • • school safety grants. The additional $100 million data needed to create and maintain the system. (or about$16 per student)provided by this measure could be used for school community policing and FISCAL EFFECTS violence prevention, gang-risk intervention, and afterschool and ifitersession programs. We estimate the statewide parcel tax would result in roughly. $450.million in new tax revenue Facility-Related Grants. Currently, the state each year. Given that the dollar amount of the tax provides funds for school facilities primarily would not increase,total parcel tax revenues would using general obligation bonds. In addition, it has grow slowly over time as new parcels of land were provided $9 million annually for the last several, created (such as by new subdivisions of property). years to help public charter schools in low--income Roughly $30 million of the parcel tax revenue areas cover some of their.facility lease costs. The 78 I .Analysis�*� Analysis 179 P For text of Proposition 88 see page 169. i I PROP EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. EDUCATION FUNDING. REAL PROPERTY PARCEL TAX. PROP 80 INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. * * * * * * INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. 88 ARGUMENT IN I� FAVOR OF PROPOSITION : : ARGUMENT AGAINST PROPOSITION : : PROPOSITION 88: A SMART INVESTMENT FOR SENIOR AND DISABLED HOMEOWNERS [SECTION All Californians want better schools,but the promoters of to impose new statewide parcel taxes than a local parcel OUR SCHOOLS,OUR STUDENTS,AND CALIFORNIA'S 21.5(b)]. Pro Proposition 88 have taken the wrong approach. Concerned tax.This is another good reason to stop statewide property FUTURE p g Pp g p p p Y PROP.88:STRICT ACCOUNTABILITY AND ANNUAL teachers and parents have joined with taxpayer groups and parcel taxes now before we are flooded with property Consider: AUDITS small business organizations to oppose Proposition 88. parcel tax propositions. • Students in one-third of California classrooms don't have Funds from Prop. 88 are prohibited from being used for Here's why: People concerned about our kids and schools say: a textbook to take home—and many don't even have a administrative overhead and the Legislature cannot redirect the Proposition 88 does nothing to assure that funds raised in As a public school teacher,nothing is more important to textbook to use in class. money to other programs[Section 6.2]. your community are spent on your schools. Proposition me than the quality of our schools. Proposition 88 is poorly • Teachers are paying for school materials out of their own To ensure that funds go to classrooms and student learning, 88 lets the State Legislature give your tax money to any drafted, it will result in tax money raised in our community ockets. p Prop. 88 requires annual independent audits [Section 6.2.(5)c] school district in the state. being spent by the State Legislature anywhere in the state. • Too many California classrooms are still overcrowded. and penalties for misuse. Proposition 88 creates a whole new kind of statewide —Lillian T.Perry, Middle School Teacher • Prop. 88 will help California graduate the skilled, With Prop. 88,we know exactly where the money goes and property tax. Currently, all property taxes are collected Teacher of the Year 2002 educated workforce that is critical to a healthy business we can make sure it is wisely.spent . locally and are used for local services, such as improving environment and our state's economicprosperity. p Y "We are the parents of two children in public schools PROP. 88: THE NEXT STEP IN IMPROVING OUR your local schools,reducing traffic congestion,improving and are active in our PTA.We are very concerned'about the PROP. 88: LOCAL CONTROL OF DOLLARS FOR increasing firefighting,paramedic,and law O health care,and me eas g g g,p n CLASSROOMS K-12 EDUCATION SYSTEM impact of Proposition 88 on our local schools and are voting enforcement capabilities.The Prop.88 property parcel tax „ Taxpayers have invested in our school system by approving NO. —Paul and Susanna Fong The education needs of communities and schools are not all local and state bonds to build new classrooms and remodel out- goes to the State first. El Dorado Hills the same. Prop. 88 provides needed funding directly to local of-date facilities.But bonds don't pay for teachers textbooks,or Proposition 88 would impose the first statewide property "Most of the school teachers I know are voting No on schools and school districts so that they, not the Legislature, other learning materials and supplies.Prop.88 puts funds in our tax since 1910 and would encourage other special interests ro P osition 88. It's bad for our schools and bad for our decide where to spend the funds. classrooms and allows local educators to use the funds where to pass more and bigger property parcel taxes for their self p Prop. 88 will provide dedicated funding to: the are most needed. interest causes. kids." —Kate McGowan-Otto, 4th Grade Teacher , • Y Opening the door to the new property parcel tax could lead Winner, Honorary Service Award, 2005 Reduce class size so students get more individualized PROP. 88: A VOTE FOR TEACHERS AND OUR KIDS p g p p Y instruction to huge new property taxes, contrary to the clear intent Proposition 88 doesn't solve problems; it creates new Teachers have one of the most important jobs.Yet their jobs • Provide textbooks and other learning materials,so teachers are made difficult because of overcrowded classrooms and of Proposition 13 to limit property taxes. We could see ones.That's why Parents and Teachers agree with Taxpayers don't have to pay for these fundamental necessities out of a lack of basic supplies. YES on Prop. 88 will help provide owners of small homes or mom-and-pop stores taxed out and Small Business Owners.V6te NO on Proposition 88. their own pockets teachers the resources they need to teach our children and give of their homes and shops. For more information visit:,www.noprop88.com.' • Make schools safer for students and teachers and help children the attention they need and deserve. This new tax is never ending; we will pay pit forever, stop campus violence and gangs whether it does anything to help schools or not. DR. TOM BOGETICH,Executive Director p g g READ PROP. 88 FOR YOURSELF. ITS A SMALL increased Proposition 88 gives Sacramento politicians nc California State Board of Education Ret. PROP. 88:'A PRUDENT AND g p ( ) FAIR INVESTMENT P INVESTMENT NOW THAT CAN MAKE A BIG Prop. 88 will put over $500 million a ear directly into power to decide where and how to spend your money. JON COUPAL President Y Y DIFFERENCE FOR OUR FUTURE. Proposition 88 uses a loophole to get around the two- our local schools through a nominal (about 14¢per day/$50 Vote YES on 88: More Textbooks and Learning Materials, Howard Jarvis Taxpayers Association per year)property parcel assessment. Funds from Prop. 88 Smaller Classes,and Safer Schools! thirds vote requirement in Proposition 13 to increase will be used to invest in our teachers and students,providing taxes. Proposition 13 requires atwo-thirds voter approval JOEL FOX,President , to impose a local property parcel tax. Proposition 88 Small Business Action Committee local schools with needed r r p P p Y p p esou ces, like textbooks, REED HASTINGS Past President computers, and other materials. TEACHERS SHOULDN'T would impose a new statewide property parcel tax with HAVE TO DIP INTO THEIR OWN_ POCKETS TO PAY California State Board of Education only a simple majority vote. As a result, it is much easier FOR CLASSROOM MATERIALS. JACK O'CONNELL, California State Superintendent of To protect those on fixed incomes, PROP. 88 EXEMPTS Public Instruction REBUTTAL TO ARGUMENT AGAINST PROPOSITION 88 REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 88 Please read Proposition 88 for yourself. It's a modest • Keep the funds out of the hands of Sacramento politicians The California Parents-Teachers Association (PTA) says Then Proposition 88 requires analysis from a new investment to help ensure students have updated textbooks, to ensure that EVERY DOLLAR goes to our local schools "NO on Proposition 88" "integrated longitudinal teacher and student data system as Would the PTA say "No on 88" if it helped our kids' defined by the Legislature"(Section 6.2 [b] [5]) smaller classes,and safer campuses. . Provideand EVERY taxpayers a e s COMMUNITY BENEFITS. and businesses an even stake in schools? County Treasurer Paul McDonnell says: "Proposition 88 . . Two ultra conservative special interest groups are p Y opposing this measure;just like they've opposed other efforts improving our schools. Proposition 88 is tricky and misleading. There is NOT is a costly administrative nightmare, creating new layers of to improve public education in our state. They have never • Require the most strict accountability requirements and ONE WORD in Proposition 88 about helping teachers who expensive bureaucracy." buy materials. Proposition 88 creates a whole new kind of property tax, proposed a solution to fix our schools. Instead, they hide wasted.ds ever proposed to make sure the funds don't get And 88 gives the impression all funds will g only a majority vote to ass opening the floodgates to behind a smokescreen of distortions and will say anything to � protect the most vulnerable b exempting seniors and g• p go to needing y � y p p g g stop Prop. 88. � y p g classrooms. Nonsense! Proposition 88 creates layers of new parcel property tax propositions.A tax with no termination disabled homeowners. costly new bureaucracies and expands old bureaucracies— date—it lasts forever.All so fewer than 5%of our kids'schools But don't just take our word for it. READ 88 FOR � Ensure that homeowners are still protected from higher for a program which forever bans Proposition 88's facilities can ask the State Legislature for a facilities grant? YOURSELF.Then please join teachers,parents,businesses, taxes due to increased property values. g o i and taxpayers around the state in voting YES on 88. , rants to more than 95/o of our kids' schools. Our kids, our schools, and our taxpayers deserve better. Yes on Prop. 88—Its a small investment with big This whole new kind of parcel property tax would be Much better. Prop. 88 will: p p p Y returns smaller classes,new textbooks,and more learning ' property Y Y p Y g Ensure that teachers wont have to pay for classroom collected from 10 millionowners b 58 count tax Parents Teachers and Taxpayers ers agree NO on 88. � materials. ' collectors—with new special exemptions. learning materials out of their own pocket. Then your money goes to • Protect students from gangs and violence on our school the State Legislature, which CLIFFORD CORIGLIANO, SR.,Teacher of the Year,2003 g g SHELBI WILSON, California Teacher of the Year,2006 decides who gets your tax money. (Proposition 88— ART PEDROZA, Member campuses. Section 6.2[d]) Reduce class sizes so students can get the attention they RUSSELL"RUSTY" HAMMER, Former Chamber of California and American Federations of Teachers,AFL-CIO deserve. Commerce Executive Then 1000+school districts collect new data from 9300+ ° California schools. LORIE MCCANN,Parent-Teachers Association Local President STEPHANIE PRIDMORE, Local PTA President 80 1 Arguments* * Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. *Arguments 181 I; PROPOSITION POLITICAL CAMPAIGNS. PUBLIC FINANCING. POLITICAL CAMPAIGNS. PUBLIC FINANCING. PROP . 89 CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND 89 EXPENDITURE LIMITS. INITIATIVE STATUTE. EXPENDITURE LIMITS. INITIATIVE STATUTE. - OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) I' POLITICAL CAMPAIGNS. PUBLIC FINANCING. 100 individuals and then distributes the funds Ballot Measures. There are no limits on the - r CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND to candidates. Other individuals,* groups, and amount of money that can be collected or spent for , committees choose to spend money on political and against state ballot measures (propositions). EXPENDITURE LIMITS. INITIATIVE STATUTE. campaigns without giving money directly to State Government's Responsibilities. The candidates. .Instead, they make "independent state's campaign finance laws are administered b • Provides that candidates for state elective office meeting certain eligibility requirements includingY collection of a specified number of$5.00 contributions from voters, may voluntarily receive public expenditures" without coordinating with the the Secretary of State (SOS) and the Fair Political campaign funding from Fair Political Practices Commission, in amounts varying by elective office and candidate. These independent expenditures, practices Commission (FPPC). Under state law, election type. such as television commercials or newspaper individuals and groups must tell SOS how much • Increases income tax rate on corporations and financial institutions by 0.2 percent to fund program. advertisements, may encourage voters to support money has been given, received, and spent on • Imposes new limits on campaign contributions to state-office candidate's and campaign committees, or oppose a candidate. There are no limits on the political campdigns. This information is available and new restrictions on contributions by lobbyists, state contractors. amount of money that can be donated for or spent to the public—generally on the Internet. The FPPC • Limits certain contributions and expenditures by corporations. on independent expenditures. is in charge of enforcing the laws to make sure candidates and donors obey the rules.The FPPC can Summary of Legislative Analyst's Estimate, of Net State and Local Government Fiscal Impact: FIGURE 1 assess fines on candidates violating election laws. • Increased revenues (primarily from increased taxes on corporations and financial institutions) totaling Proposition 89: Main Provisions more than $200 million annually. funds would be spent on the public financing of political PROPOSAL Y p p g p ✓ Public Funding for Political Candidates campaigns for state elected officials. • A candidate for state office meeting certain This measure makes significant changes to requirements could receive state funds to pay for state laws regarding the financing of campaigns ANALYSIS BY THE LEGISLATIVE ANALYST the costs of a political campaign. • The amount of state funds that a candidate would for elected state offices and state ballot measures. OVERVIEW OF THE MEASURE candidate is determined b state law. The limits were receive would go up if an opponent spent more in The measure's provisions regarding candidates for y private funds. office generally affect only state elected officials last changed when voters approved Proposition 34 see Figure 2 This proposition makes major changes to the ✓ Lower Contribution Amounts for Privately Funded ( i g )• way that political campaigns for state candidates limits on the amount of money that can be given at the November 2000 general election. Current Candidates and ballot measures are funded. Candidates could For candidates choosing not to receive public FIGURE 2 choose to receive public funding for the costs of depend on the office being sought and who is funding, the amount of,money that could be State Elected officials Covered by Proposition :• giving the donation. For instance an individual can collected from each individual, corporation, or their campaigns. Tor those candidates choosing other group would be lower than is currently the Statewide Officials give a candidate for the state Assembly a donation not to receive public funding, existing limits on case. the amount of political donations ("contributions") of up to $3,300. On the other hand, a political party Governor can give that same candidate as much money as ✓ Contribution Restrictions for State Ballot Measures Lieutenant Governor would be lowered. Figure 1• shows the main . g Y it chooses. A candidate can accept donations an Places new limits on contributions to-candidates' Attorney General provisions of the measure, which are discussed in p y efforts to support or oppose ballot measures. y ,more detail below. time before an election and can spend without limit . Places new limits on contributions from Secretary of State any money that is collected. corporations to support or oppose ballot Treasurer BACKGROUND Role of Committees and Independent measures. Controller . • Current Limits on Political Contributions., Expenditures.Rather than make donations directly ✓ Higher Corporate Taxes Insurance Commissioner Candidates for state offices collect private donations to candidates, some individuals and groups choose • Increases tax rate on corporations and financial Superintendent of Public Instruction from individuals, corporations, political parties, institutions. For corporations, tax rate would to make political donations to committees. These Legislature p P P increase.from 8.84 percent to 9.04 percent. For g and other organizations (such as labor unions .and committees take donations and then decide which financial institutions, tax rate would increase from Senators(40) nonprofit organizations) to a for the costs of candidates to give money. For instance, one type 10.84 percent to 11.04 percent. P g ) pay Assembly Members(80) their political campaigns. The maximum amount of committee—a small contributor committee— Raises over $200 million each year to implement of money that each person or group can give to a accepts donations of up to $200 from more than the measure. Board of Equalization Members (4) 82 1 Title and Summary/Analysis*** ***Analysis 1 83 For text of Proposition 89 see page 171. PROP POLITICAL CAMPAIGNS. PUBLIC FINANCING. 89 CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND POLITICAL CAMPAIGNS. PUBLIC FINANCING. PROP 89 CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND i' EXPENDITURE LIMITS. INITIATIVE STATUTE. EXPENDITURE LIMITS. INITIATIVE STATUTE. ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) # * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) PUBLIC FUNDING FOR POLITICAL CANDIDATES candidates would continue to be able to receive participating candidate to receive additional funds candidates representing major parties (generally, The measure establishes a system for candidates donations from political parties. Donations from to receive public funds to pay for the costs of political parties would be subject to the same in some cases. Specifically, if an opponent spent parties whose nominee for Governor in the last more in private funds than the amount of public election received at least 10 percent of the vote). campaigning for state offices. limits as for candidates choosing not to receive funds available, additional public funds would be Under the measure, candidates from minor parties Requirements to Receive Money public.funds (described below). provided to the candidate on a dollar-for-dollar and independent candidates are eligible to receive In order to receive public funding for a Other Requirements. By accepting public basis. Similarly, a participating candidate would smallVr amounts of public funds. Depending on the campaign, a candidate would have to meet certain funding, a candidate would be subject to receive additional public funds if independent situation, a minor party or independent candidate requirements: some additional requirements. For example, expenditures were made in support of an opponent. could receive as much as one-half of the amount candidates would be required to participate,in The maximum amount of additional public funds that a major party candidate receives. • $5Donations and Signatures.A candidate would public debates before each election. In addition, that a candidate could receive is capped under the LOWER CONTRIBUTION AMOUNTS FOR PRIVATELY be required to collect a number of$5 donations candidates could not use their personal funds to measure (generally five times the original amount FUNDED CANDIDATES ("qualifying contributions")and signatures from pay for campaign costs. provided to a candidate and four times the amount Lower Campaign Contributions. For those residents prior to a primary election. As shown for a candidate for Governor). For instance, the in Figure 3 the required number of donations Public Funding Provided candidates who choose not to participate in the g - q maximum amount of additional public funds that P p would range from 750 to 25,000 depending on Those candidates meeting the requirements a candidate for the Assembly could receive fora public financing of campaigns, the measure the office sought. The measure requires that described above would become eligible to receive I primary election would be $1.25 million. imposes new limits for campaign donations to these donations be paid to the state. public funds. As shown in Figure 3, the amount p y candidates. The measure's limits generally are • Private Contributions. To receive public of funding would vary based on 1 the office Funds for Expenses While in Office. Under g Y ( ) much more restrictive than is now the case. For funding, a candidate could not receive private sought and (2) whether it was a primary or general current law, state elected officials generally may instance, currently individuals, corporations, • election. For instance for primary election a use leftover campaign funds to pay for some campaign funding, with two main exceptions. p y and,other groups can donate $3,300 per election First, beginning up to 18 months prior to a candidate runningfor the Assembly could receive expenses while in office. Under the measure, those Y to a candidate for the Legislature. This measure $250,000 for the primary election and an additional candidates who accept public financing and win primary election, the measure allows candidates , p y would restrict contributions to $500 for legislative $400,000 for the general election if successful in their election would be eligible to receive annual to collect and spend start-up contributions, or g ( candidates. Currently, pol�.tical parties can give to cover similar expenses. Members of "seed money." (These funds could be used, for the primary election). A candidate for Governor payments p unlimited amounts to candidates. Under the could receive $10 million in the rimar election the Legislature would receive $50,000 each year instance,to pay-costs for collecting the qualifying p y measure, a political party,s donations would be additional $15 million in the and an additi eneral while in office and other state officials would contributions and signatures.) The measure g limited. For example, a political party could give election.The FPPC would administer the funds and receive $100,000 each year. a privately funded candidate for Assembly u to restricts these types of donations to $100 each. p Y y p Total donations would be limited to between make disbursements using a debit card system. Minor Party and Independent Candidates $20,000 for a general election. These new limits $10,000 and $250,000 depending on the office Additional Public Funds. In cases where a The amounts shown in Figure 3 are for are summarized in Figure 4. (see Figure 3). These funds could only be spent candidate's opponent chose not to participate in until 90 days prior to a primary election. Second, the public financing system, the measure allows a FIGURE 4 FIGURE 3 Campaign Contribution Limits for Privately Funded Candidates (For Each Election) Proposition 89; Public Financing Provisions for Major Party Candidates Individual, Group, or Small Contributor Corporation Committee Political Party Initial Steps Public Financing Available CURRENT PROPOSITION 89 CURRENT PROPOSITION.89 CURRENT PROPOSITION 89a NUMBER OF MAXIMUM START-UP PRIMARY GENERAL Office $5 CONTRIBUTIONS CONTRIBUTIONS ELECTION ELECTION Assembly $3,300 $500 $6,700 $2,500 No limit $20,000 Senate 3,300 500 6,700 2,500 No limit 40,000 Assembly 750 $10,000 $250,000 $400,000 Senate 1,500 20,000 500,000 800,000 Board of Equalization 5,600 500 11,100 2,500 No limit 20,000 Statewide officials 5,600 1,000 11,100 2,500 No limit 200,000 Board of Equalization 2,000 30,000 250,000 400,000 Statewide officials 7,500 75,000 2,000,000 2,000,000 Governor 22,300 1,000 22,300 2,500 No limit' 750,000 Governor aAmounts shown are for general elections.Primary election limits are between one-half and two-thirds of the amounts shown. Political party limits would apply 25,000 250,000 10,000,000 15,000,000 to both privately and publicly funded candidates. i 84 1 Analysis *** ***Analysis 1 85 For text of Proposition 89 seepage 171. r l PROP POLITICAL CAMPAIGNS. PUBLIC FINANCING. POLITICAL CAMPAIGNS. PUBLIC FINANCING. PROP 89 CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND 89 EXPENDITURE LIMITS. INITIATIVE STATUTE. EXPENDITURE LIMITS. INITIATIVE STATUTE. ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * * * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) 1i would result in more spending being subject to Other Restrictions on Campaign Contributions. State Contractor Restrictions. Under existing FISCAL PROVISIONS The measure also adds other types of restrictions on law,those individuals and entities receiving state Higher Corporate Taxes. In order to pay for donation limits and disclosure requirements. j campaign contributions related to privately funded contracts are not subject to any special restrictions the measure's provisions (primarily for the public i candidates, which are summarized in Figure 5. on political contributions. The measure forbids, financing of campaigns),the measure increases taxes FISCAL EFFECTS • Independent Expenditure Contribution Limit. in some instances,those receiving state contracts on corporations and financial institutions beginning New Revenues. We estimate that the measure The measure restricts donations to $1,000 from making donations to candidates, political in 2007.The measure increases the income tax rates would raise over $200 million annually. Virtually each year to a committee for independent parties, and committees. paid by corporations from 8.84 percent to 9.04 all of this amount would come from the increased expenditures. As under current law, individuals CONTRIBUTION RESTRICTIONS FOR STATE BALLOT percent.For financial institutions,the rate would rise taxes on corporations and financial institutions. could make unlimited independent expenditures from 10.84 percent to 11.04 percent. Small amounts would come from the collection ` p MEASURES if they spent the money on their own,without the Other Revenues. In addition,the measure would of candidates' $5 contributions and fines on use of a committee. Unlike donations for candidates, the amount of money donated by entities to support or oppose result in other, small sources of revenues,primarily candidates violating election laws. Since fines for • Overall Donation Limit. The measure also adds state ballot measures currently is not subject to the collection of candidates' $5 contributions and violating election laws are currently deposited in new limits on the overall amount of political contribution limits. This measure places two new fines on candidates violating election laws. (Under the state's General Fund,the measure would slightly contributions that a person or group can make restrictions on donations for ballot measures: current law, fines for violating election laws are reduce General Fund revenues(by about$1 million to candidates and committees in a year.The total deposited into the state's General Fund.) annually). amount that could be donated to all types of - First, when a candidate for state office is i committees to support or oppose state candidates significantly involved with a committee that Total Amount of Funds. The total amount of New Spending., The new funds would pay for would be limited to $15,000. Of this total, supports or opposes a ballot measure,individuals, funds that could be held by the state at any time for costs associated with the measure. We estimate however, any contributions over $7,500 would corporations, and other groups would'be limited the measure's purposes would be limited to about costs to administer the provisions of the measure be required to go for independent expenditures. to'a $10,000 contribution to that committee. $900 million. (The formula determining this amount and pay for voter education would be in the range • Lower Political Parry Contribution Limit. Second, corporations would be prohibited from would be adjusted for inflation every two years.) of several million dollars each year. (There would transferred to be additional one-time costs, largely for computer An amount over this limit.would be a The measure 1 making contributions or spending more than Y u e lowers an existing limit on annual g p g I g contributions to political parties from $27,900 to $10,000 to support or oppose a ballot measure. the state's General Fund. If there were not enough systems and voter education, to set up the public $7,500. (Nonprofit corporations meeting certain money to fully fund the measure's provisions, the financing of campaigns for the first time.) The • Lobbyist Restrictions. Under existing requirements would not . be subject to this measure authorizes FPPC to proportionately reduce remaining funds would be available for candidates law, lobbyists are prohibited from making restriction.) Corporations, however, could the amount of funds available to each candidate. who choose to receive public funds for their political contributions to candidates. The measure also establish special committees to collect voluntary campaigns. The amount of spending on the public forbids lobbyists from making donations to donations from employees for additional OTHER PROVISIONS financing of election campaigns would depend political parties and committees. expenditures. Administration Costs.The measure provides that on a number of factors and vary from election to a minimum of $3 million (adjusted for inflation election. Among the factors affecting spending FIGURE 5 every two years) of the new funds would go to would be: Other : • FPPC to pay for the administration of the measure. . The number of candidates accepting public funds. The SOS would also be required to use some of the The amount of money spent by candidates not Current Proposition 89 funds for a voter education campaign. receiving public financing(which would determine • Candidate-Related Contributions Election Procedures. The measure makes a the level of any additional public funds). . • Total annual contribution to an independent expenditure committee to support or No limitnumber of other changes to election procedures. The measure provides that total spending could oppose a candidate. $1,000 For instance, the measure prohibits any candidate not exceed the amount of money available from • Total annual contributions to political parties for candidate-related expenditures. $27,900 7,500 (whether receiving public financing or not) from the increased revenues. Assuming that the number • Total annual contributions to all types of committees for candidate-related No limit 15,000' collecting campaign donations earlier than 18 of candidates in each election does, not increase expenditures. Ballot Measure Contributions months prior to a primary election.Also,the measure significantly from current levels,there probably would changes what counts as independent and political be sufficient funds available to provide all candidates • Contributions for or against a ballot measure where a candidate is significantly involved. No limit $10,000 expenditures prior to an election. These changes with the amounts allowed under the measure. • Contributions for or against a ballot.measure by a corporation. No limit 10,000 'Contributing more than$7,500 is allowed only for independent expenditures. 86 I Analysis yt* ***Analysis 187 For text of Proposition 89 seepage 171. PROP POLITICAL CAMPAIGNS. PUBLIC FINANCING. POLITICAL CAMPAIGNS. PUBLIC FINANCING. PROP 89 EXOPENDITURE LIMITS.TE TAX INCREASE. CAMPAIGN CONTRIBUTION AND CORPORATE *INCREASE. LIMITS. NITIATIVE SOTAT�ED. "9 TIATIVE STATUTE. ARGUMENT IN FAVOR OF PROPOSITION 89 ARGUMENT AGAINST PROPOSITION 89 VOTE YES TO TAKE A STAND AGAINST THE 6. Restrict contributions by corporations, unions, and Don't be fooled by Proposition 89.Prop. 89 is NOT about Proposition 89 puts no limits on wealthy candidates who POWER OF SPECIAL INTERESTS AND LOBBYISTS IN individuals to $500 for candidates for state Legislature, cleaning up politics. But,itis 56 pages of new, complicated, try to buy California elections. CALIFORNIA GOVERNMENT. $1,000 to candidates for statewide office. confusing election rules that won't work. Under Proposition 89, a politician using taxpayer funds VOTE "YES" ON PROPOSITION 89, THE CLEAN 7. Establish tough penalties,including jail time and removing Proposition 89 was put on the ballot by a single special and running against a wealthy candidate can get up to ten MONEYAND FAIR ELECTIONS ACT candidates from office who break the law. interest group, the California Nurses Association,that wants' times the normal taxpayer money to run his campaign. A We have a crisis of corruption in our government marked NOT FUNDED BY INDIVIDUAL TAXPAYERS OR THE an UNFAIR advantage in California elections while small candidate for Governor could qualify for up to $200 million by scandal after scandal and criminal investigations of 'STATE BUDGET businesses and individuals are effectively SHUT OUT of the of taxpayer money to run his or her campaign. s politicians from both parties. It is time for Californians to Proposition 89 is specifically funded by a modest increase political process. Even other labor organizations like those PROPOSITION 89:IT'S UNCONSTITUTIONAL! clean up this corruption and make politicians accountable to in the corporate income tax rate—raising it from 8.84% to representing teachers, firefighters, and law enforcement do James Hall,past Chairman of the California Fair Political voters instead of big money campaign contributors. 9.04%.The resulting corporate income tax rate would still be not support Proposition 89, because it RESTRICTS their Practices Commission,says: THE PROBLEM less than it was from 1980 until 1996. Corporations should participation in the political process as well. "Proposition 89 is unconstitutional, unfair, and won't Right now, special interests like big oil companies, the pay their fair share in taxes. PROPOSITION 89: NOT JUST ABOUT BIG work." drug giants, the insurance industry, and HMOs can et their WHEN YOU HEAR THE ARGUMENTS AGAINST CORPORATIONS. Supporters of 89 say it is modeled after measures in way in Sacramento by donating millions to elect politicians PROPOSITION 89, REMEMBER: The authors of Prop. 89 say they are trying to stop other states. But, the United-States Supreme Court recently who will owe them favors.Lobbyists and special interests use • Opposition to Proposition 89 is being led and funded by big corporations from having too much influence. But, found the contribution and expenditure limits in a similar campaign contributions to pass their pork barrel projects and the big oil companies, drug companies, the insurance Proposition 89 restricts many small businesses from backing measure from Vermont unconstitutional because they limit create tax loopholes--costing consumers and taxpayers like industry,HMOs and'other entrenched interests. candidates or supporting and opposing initiatives. Even a free speech and violate the First Amendment. you billions of dollars each year. • Proposition 89 was drafted and reviewed by experts in mom-and-pop business, if it is incorporated like many are, PROPOSITION 89: WE ALREADY HAVE CAMPAIGN THE SOLUTION.•PROPOSITION 89 constitutional and election law and put on the ballot and is restricted under Prop. 89. LIMITS. If you're"dissatisfied with the way campaigns are funded backed by Democrats,Republicans,and independent voters. Proposition 89 also restricts many nonprofit groups that Californians have already passed a campaign finance in California and the effect of campaign contributions on The opponents of Proposition 89 want to keep the system want to educate voters about the issues they care about. For reform law,Proposition 34,which strictly limits contributions state government,Vote Yes on Prop. 89. exactly the way it is, because they know it works for example, a group of crime victim advocates will be limited to candidates.This law has survived several court challenges YOUR "YES" VOTE WILL: them,NOT for you.They are making false claims against in warning voters about a candidate who is soft on crime. and is working.We don't need Prop. 89. 1. Help level,the playing field and make our elections more Proposition 89 because they want to keep political power Teachers will be limited in helping elect candidates who will SAY NO to PROPOSITION 89! for themselves rather than having fair elections that make support improving our schools. fair and competitive—so. that candidates with the best Proposition 89 is unfair to small businesses, nonprofits, ideas have a chance to win,even if they are not rich or well politicians accountable to the-voters. I PROPOSITION 89: INCREASES TAXES TO PAY FOR and groups representing working Californians. It is a waste connected to wealthy special interest groups and lobbyists. VOTE YES ON PROPOSITION 89!RETURN ELECTIONS NEGATIVE CAMPAIGNS. of our precious tax dollars, it's unconstitutional, and it's 2. Require candidates to adhere to strict spending limits and TO THE VOTERS AND REDUCE THE POWER OF THE California has many urgent priorities to get our state back just another confusing measure that won't work. Please join reject special interest contributions in order to qualify for SPECIAL INTERESTS. on the right track. small businesses, taxpayers, educators, organized labor, and public financing. Proposition 89 contains a $200 MILLION TAX so many others in voting NO on Proposition 89. 3. Ban contributions to candidates by lobbyists and state DEBORAH BURGER, RN, President INCREASE and gives that money to politicians to Y'o contractors. California Nurses Association spend on their negative TV ads and junk mail. ALLAN ZAREMBERG,President 4. Set limits on outside, so-called "independent" campaign HARVEY ROSENFIELD,Founder I Proposition 89 places virtually no limits on how.the California Chamber of Commerce committees created by big contributors to influence elections. Foundation for Taxpayer and-Consumer Rights i politicians spend their taxpayer-financed campaign funds. It TONY QUINN,Former Commissioner 5. Limit to $10,000 the amount corporations can spend SUSAN LERNER Executive Director means that we, the taxpayers,will be payingfor their negative California Fair Political Practices Commission , directly on ballot measure campaigns. ads! California Clean Money Campaign LARRY MCCARTHY,President PROPOSITION89: WON'T STOP. WEALTHY CANDIDATES California Taxpayers' Association REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION REBUTTAL TO ARGUMENT AGAINST PROPOSITION 89 Here's what you should know before voting: recently thrown out by the Supreme Court.The truth—Prop.89 PROPOSITION 89 IS A TAX INCREASE TO PAY FOR is a complicated,55-page measure that won't work. Elections should be decided by voters,not special interests. proven to be effective and constitutional. POLITICIANS'NEGATIVE POLITICAL CAMPAIGNS PROP. 89 IS UNFAIR Elections should be about the best ideas, not who has,the • Opens our elections to a diversity of qualified candidates The supporters of Proposition 89 won't tell you that what And the biggest deception of all—the authors of most money. Vote YES on Proposition 89 for fair and clean from all walks of life,like teachers,nurses,and firefighters, this measure really does, plain and simple, is raise taxes by Proposition 89 are special interests too! They wrote Prop. 89 elections. not just those with access to the most money. hundreds of millions of dollars so politicians can run their so they can still contribute BIG MONEY to ballot initiatives, Proposition 89: • Sets tough penalties for those who violate the law. campaigns at taxpayers' expense. while small businesses, nonprofits, and others are virtually • Levels the playing field and makes our elections fairer and The special interests oppose Prop. 89 because they like Everything we don't like about political campaigns— SHUT OUT. Prop. 89 is a power grab by a single special more competitive.Advocates for crime victims,education, the control they have over our political system today. As a • • negative television ads and junk mail in our mailboxes— interest to dominate elections under the guise of campaign healthcare, seniors, and other regular Californians will no Los Angeles Times headline said, Prop. 89: So Good Its would still be there. The only difference is OUR TAX reform. longer be drowned out by big campaign spenders. Scary—to Sacramento." -DOLLARS would be paying for it. DON'T BE FOOLED BY PROP. 89—IT'S PHONY • Saves taxpayers money by ending the incentive for , It is time to put the voters back in charge.VOTE YES ON AFFECTS SMALL BUSINESSES TOO REFORM. legislative giveaways on lobbyist-driven projects. The PROPOSITION 89. They claim that Proposition 89 is about reducing the impact VOTE NO ON PROP. 89. $3.3 billion in corporate tax loopholes today cost each of big corporations in elections, but it also SEVERELY California household$275 every year. JACQUELINE JACOBBERGER, President LIMITS the ability of many small businesses from backing LARRY McCARTHY,President • Provides the antidote to negative advertising. Candidates League of Women Voters of California candidates or impacting measures. California Taxpayers" Association who accept public financing must participate in real p gRICHARD L. HASEN, JD, Ph.D.; Constitutional Election That's why the California Small Business Association BETTY JO TOCCOLI,Chair debates and cannot hide behind negative 30-second ads. Law Professor opposes Prop. 89. California Small Business Roundtable Does not increase taxes on individuals. Small businesses PROP.89 IS COMPLICATED AND UNCONSTITUTIONAL will not foot the bill. KATHAY a Co Executive Director JAMES M. HALL,Former Chair • Creates a Clean Money public financing system like those They say Prop. 89 was crafted by election experts,but they California Common Cause don't tell you that major portions of a similar measure were California Fair Political Practices Commission in other states that protects free speech and has been 881 Arguments** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.' * Arguments 1 89 PROPOSITION GOVERNMENT ACQUISITION, REGULATION OF PRIVATE GOVERNMENT ACQUISITION, REGULATION OF PRIVATE PROPERTY. PROP PROPERTY. INITIATIVE CONSTITUTIONAL AMENDMENT. INITIATIVE CONSTITUTIONAL AMENDMENT. 1 OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) ' and rules also would be exempt from this requirement This measure specifies that government must, pay GOVERNMENT ACQUISITION, REGULATION OF PRIVATE PROPERTY. if government enacted them: (1)to protect public health property owners if a new law or rule imposes"substantial INITIATIVE CONSTITUTIONAL AMENDMENT. and safety, (2) under a declared state of emergency, or economic losses"on the owners.While the measure does • Bars state and local governments from condemning or damaging private property to promote other private (3) as part of rate regulation by the California Public not define this term, dictionaries define"substantial"to projects or uses. Utilities Commission. be a level that is fairly large or considerable. Thus, the measure appears to require government to pay property • Limits government's authority to adopt certain land use,housing,consumer, environmental and workplace laws What Laws and Rules Could Require owners for the costs of many more laws and rules than and regulations, except when necessary to preserve public health or safety. Compensation? it does today, but would not require government to pay • Voids unpublished eminent domain court decisions. While the terms of the,measure are not clear, the for smaller(or less than substantial) losses. • Defines "just compensation" measurA provides three examples of the types of new • Government must occupy condemned property or lease property for public use. laws and rules that could require compensation. These EFFECTS ON STATE AND LOCAL GOVERNMENTS i • Condemned private property must be offered for resale to prior owner or owner's heir at current fair market examples relate to land use and development and are value if government abandons condemnation's objective. summarized below. The measure's provisions regarding economic • Exempts certain governmental actions. • Downzoning Property. This term refers to decisions losses could have a major effect on future state and by government to reduce the amount of development local.government policymaking and costs.The amount Summary of Legislative Analysts Estimate of Net State and Local Government Fiscal Impact: permitted on a parcel. For example, a government and nature of these effects, however, is difficult to • determine as it would depend on how the courts • Increased annual state and local government costs to a roe owners for 1 losses to their roe action to allow construction of three homes on an g pay property rt3' ( .) property rtY interpreted the measure's provisions and how the associated with certain new laws and rules, and(2)property acquisitions.The amount of such costs is acre where five homes previously had been permitted Legislature implemented it. Most notably: unknown,but potentially significant on a statewide basis. commonly is called"downzoning." • Limitations on the Use of Private Air Space. This How Many Laws and Rules Would Be Exempt From ANALYSIS BY THE LEGISLATIVE ANALYST term generally refers to actions by government the Requirement That Government Pay Property that limit the height of a building. For example, a Owners for Losses? The measure does not require government rule limiting how tall a building may government to compensate property owners under . SUMMARY cover a variety of government requirements, including be to preserve views or maintain historical character certain circumstances (such as actions to protect statutes,ordinances, and regulations.) often is called a limitation of"air space." public health and safety). If these exemptions were This measure amends the California Constitution to: In some cases, government requirements can reduce Eliminating Any Access to Private Property. This interpreted broadly(rather than narrowly),fewer new • Require government to pay property owners for the value of private property. This can be the case, for term could include actions such as closing the only laws and rules could require compensation. substantial economic losses resulting some ma new example,with laws and rules that(1)limit developm ent public road leading to a parcel. How Bag Is a Substantial Economic Loss? If laws and rules. on a homeowners property, (2) require industries relatively small losses (say, less than a 10 percent In addition to the examples cited above, the broad • Limit government authority to take ownership of to change their operations to reduce pollution, or (3) reduction in fair market value) to a property owner private property. p language of the measure suggests that its provisions restrict apartment rents. i required compensation,government could be required could apply to a variety of future governmental � This measure applies to all es of private ro ert � to pay many property owners for costs resulting from pp types p p p Y� I requirements that impose economic losses on property includinghomes buildings,land,cars and"intangible" PROPOSAL new laws and rules.On the other hand,if courts ruled � g > g� owners.These laws and rules could include requirements such as ownership of a business or atent that a loss must exceed 50 percent of fair market property ( p P )• This measure requires government to a roe relating, for example, to employment conditions, q g pay property value to be a substantial economic loss, government The measures requirements apply to all state and local owners if it passes certain new laws or rules that result apartment prices, endangered species, historical governmental agencies. reservation and consumer financial protection. would be required to pay fewer property owners. . in substantial economic losses to their property. Below, p we discuss the types of laws and rules that would be Under the measure, state and local governments PAYING PROPERTY OWNERS FOR Would Government Pay Property Owners for probably Y p y gp exempt from the measure's requirements and those that � robabl would modify their olic makin practices to ® ECONOMIC LOSSES might require government compensation. All Losses? try to avoid the costs of compensating property owners • Under current law and court rulings, government for losses. In some cases, government might decide not j State and local governments pass laws and other rules What Laws and Rules Would Not Require usually is required to compensate property owners to create laws and rules because of these costs. In other to benefit the overall public health, safety, or welfare Compensation? for losses resulting from laws or rules if government's cases, government might take alternative approaches to of the community, including its long-term economy. All existing laws and rules would be exempt from action deprives the owners of virtually all beneficial use achieving its goals. For example, government could: (In this analysis, we use the term "laws and'rules" to the measure's compensation requirement. New laws of the property.` 90 1 Title and Summary/Analysis*** ***Analysis 191 For text of Proposition 90 seepage 187. i i PROP GOVERNMENT ACQUISITION, REGULATION OF PRIVATE PROPERTY. GOVERNMENT ACQUISITION, REGULATION OF PRIVATE PROPERTY. PROP 90 • INITIATIVE CONSTITUTIONAL AMENDMENT. INITIATIVE CONSTITUTIONAL AMENDMENT. 90 ANALYSIS BY THE LEGISLATIVE ANALYST(CONTINUED) * ANALYSIS BY THE LEGISLATIVE ANALYST (CONTINUED) • Give property owners incentives to voluntarily carry • Restricting the purposes for which government'may In any legal challenge regarding a property taking, Relatively few properties are acquired using out public objectives. take property. government would be required to prove to a jury that the government's eminent domain power. Instead, Reduce the scope of government requirements so that • Increasing the amount that government must pay taking is for a public use as defined by this measure. In government buys most of this property from willing any property owners'losses were not substantial. property owners. addition, courts could not hold property owners liable sellers. (Property owners often are aware, however, • Link the new law or rule directly to a public health Requiring government to sell property back to its to pay government's attorney fees or other legal costs if that government could take the property by eminent and safety(or other exempt)purpose. original owners under certain circumstances. the property owner loses a legal challenge. domain if they did not negotiate a mutually agreeable There probably would be man cases however,where Below, we discuss the major changes proposed b 1 How Much Would Government Have to Paysale.) p _ Y Y government would incur additional costs as a result of the measure,beginning with the situations under which Property Owners? A substantial amount of the property that government acquires is used for roads,schools,or other purposes that the measure. These would include situations where government could—and could not. property. Current law requires government to pay dust q government anticipated costs to compensate property meet the public use requirements of this measure—or is g p p p p Y Under What Circumstance Could Government compensation to the owner before taking property.Just owners at the time it passed a law—as well as cases acquired to address specific public nuisances. In these Take Property? compensation includes money to reimburse the owner when government did not expect to incur these costs. cases, the measure would not reduce government's The total amount of these payments by government to Under the measure, government could take private for the property's fair market value (what the property , and its improvements would sell for on an open market), authority to take property.The measure,however,likely property owners cannot be determined, but could be property to build public roads, schools,parks,and other plus any reduction in the value of remaining portions of would increase somewhat the amount that government significant on a statewide basis. government-owned public facilities. Government also the parcel that government did not take. State law also must pay property owners to take their property. In could take property and lease it to a private entity to requires government to compensate property owners addition, the measure could result in willing sellers LIMITING GOVERNMENT AUTHORITY provide a public service (such as the construction and and renters for moving costs and some business costs increasing their asking prices. (This is because operation of a toll road). If a public nuisance existed sellers could demand the amount that they would TO TAKE PROPERTY and losses. on a specific parcel of land, government could take have received if the property were taken by eminent Eminent domain (also called"condemnation") is the that parcel to correct the public nuisance. Finally, The measure appears to increase the amount of money domain.) The resulting increase in government's costs power of local, state, and federal governments to take government could take property as needed to respond government must pay when it takes property. Under the to acquire property cannot be,determined, but could be private property for a public use so long as government to a declared state of emergency. ° measure,for example,government would be required to significant. x. compensates the property owner. (In some cases, pay more than a property's fair�market value if a greater What Property Takings Would Be Prohibited.? sum were necessary to lace the property owner"in the The rest of the property government acquires is used . government has given the power of eminent. domain Y p p p Y for purposes that do not meet the requirements of this to private entities, including telephone and energy Before .taking property, the measure requires same position monetarily" as if the property had never p q government to state a"public use" for the property.The measure. In these cases, government could not use companies and nonprofit hospitals. In this analysis, these g p p p Y• been taken.The measure also appears to make property private entities are included within the meaning of measure narrows the definition of public use in a way owners eligible for reimbursement for a wider range of eminent domain and could acquire property only by "government.") that generally would prevent government from taking costs and expenses associated with the property taking negotiating with property owners on a voluntary basis. a property: than is currently the case. If property owners demanded selling prices that were Over the years, government has taken private more than the amount government previously would To Transfer It to Private Use. The measure When Would Government Sell Properties to property to build roads, schools, parks, and other p have paid, governments spending to acquire property specifies that government must maintain ownership Former Owners? would increase.Alternative) if property owners did not public facilities. In addition to these uses of eminent Y� p p Y of the property and use it only for the public use it domain, government also has taken property for If government stopped using property for the purpose* wish to sell their roe and no other suitable property specified when it took the property. g pp g p p Y p p property rtY p p Y public purposes that do not include construction of it staked at the time it took the property,the former owner was available for government to purchase,government's public facilities. For example, government has taken To Address a Public Nuisance, Unless the Public of the property or an heir would have the right to buy spending to acquire roe would decrease. p p , g p p Y ( ) g Y p g q property to: help develop higher value businesses in Nuisance Existed on That Particular Property. For property p p g back the property. The property would be assessed for Overall,the net impact of the limits on government's an area correct environmental problems, enhance tax example, government could riot take all the parcels p property tax purposes as if the former owner had owned authority to take property is unknown. We estimate, revenues, and address "public nuisances" (such as in a run-down area unless it showed that each and the property continuously. hazardous buildings, blight, and criminal activity). every parcel was blighted. however,that it is likely to result in significant net costs As Part of a Plan to Change the Type of EFFECTS ON STATE AND LOCAL GOVERNMENTS on a statewide basis. PROPOSAL Businesses in an Area or Increase Tax Revenues. 'For example, government could not take Government buys many hundreds of millions of This measure makes significant changes to property to promote development of a new retail or dollars of property from private owners annually. government authority to take property, including: tourist destination area. Analysis 193 92 1 Analysis For text of Proposition 90 seepage 187. *** PROP GOVERNMENT ACC`UISITION, REGULATION OF PRIVATE PROPERTY. GOVERNMENT ACCLUISITION, REGULATION OF PRIVATE PROPERTY. PROP 90 INITIATIVE CONSTITUTIONAL AMENDMENT. * * * * * * INITIATIVE CONSTITUTIONAL AMENDMENT. 90 ARGUMENT , 1 OF "PROPOSITION • 1 ARGUMENT AGAINST " 1 ' 1 1 • 1 Proposition 90 stops eminent domain abuse! That's simple fairness. The handful of wealthy ,landowners that paid to put As a result,Prop.90 would lead to thousands of expensive Local governments can take homes, businesses, and That's why California needs Proposition 90, the Protect Prop. 90 on the ballot are trying a classic bait and switch on lawsuits that would tie up our courts and result in added churches through unfair use of eminent domain. They can Our Homes Act. California voters. bureaucracy and red tape. also take away your property value with the stroke of a pen. Proposition 90 will: They want you to believe Prop. 90 is about 'eminent The cost of these lawsuits and payouts would rob local We are three average Californians,and it happened to us. restore homeowners' rights that were gutted last year domain. That's the bait. But, hidden in the fine print of the communities of billions of dollars in limited resources that Local governments unfairly tried to take our property by the Supreme Court's outrageous Kelo decision. That measure is the trap—a far-reaching section unrelated to fund fire and police protection,paramedic response,schools, away from us and turn it over to developers to build condos, ruling allows eminent domain to be used to take homes eminent domain that would lead to huge new costs for all traffic congestion relief, and other vital services. That's hotels,and other commercial projects. and businesses and turn them over to private developers. California taxpayers. why the CALIFORNIA FIRE CHIEFS ASSOCIATION, Why?Because these developers are politically connected, return eminent domain to legitimate public uses, such Prop.90 would change California's constitution to enable CALIFORNIA POLICE CHIEFS ASSOCIATION, and and their projects will generate more tax revenue for local as building roads, schools, firehouses, and other needs large landowners and corporations.to demand huge payouts CALIFORNIA SCHOOL BOARDS ASSOCIATION oppose governments. that serve the public and not the financial interests of the from state and local taxpayers just by claiming a law has Prop. 90. If government can take our property, it can take yours government and powerful developers. harmed the value of their property or business—no matter PROP. 90 would trap taxpayers in a LOSE-LOSE too. • restrict government's ability to take away people's use of how important the law may be or far-fetched the claim. situation. If communities act to protect their quality of Manuel Romero doain used against his their property without compensating g them. According to William G. Hamm, formerlyCalifornia's life, taxpayers could be forced to make huge payouts. Or, • family restaurant so that a�Merc nent des Benz dealership next Those who benefit financially from the status quo are nonpartisan legislative analyst, "PROP. 90 could require if communities couldn't afford the payouts, basic quality- . door could use the space for a parking lot. spending millions to mislead voters and claim the sky is BILLIONS OF DOLLARS IN NEW TAXPAYER COSTS of-life protections simply couldn't be enacted. That's why • Bob Blue had eminent domain used against his small falling. EACH YEAR, if communities and the state continue-to conservation groups,including the CALIFORNIA LEAGUE luggage store—in his family for almost sixty years—so Opponents are engaging in scare tactics in order to divert pass or enforce basic laws to protect neighborhoods, limit OF CONSERVATION VOTERS and the PLANNING AND that a luxury hotel could be'built. attention from their REAL MOTIVE—maintaining the status unwanted development, protect the environment, restrict CONSERVATION LEAGUE, warn the measure would unsavory businesses,and protect consumers:' drastically limit.our ability to protect California's coastline • Pastor' Roem Agustin had his -church threatened quo so they can continue to profit from taking our private y p with condemnation so that a developer could build property. With no limit on the total costs,Prop.90 traps taxpayers open spaces,farmland,air and water quality. condominiums. For example, opponents falsely claim that the measure into signing a blank check. We all pay, while large For more information on Prop.90,visit www.NoProp90.com. It's wrong for senior citizens, small business owners, or will hurt the enforcement of.environmental regulations. But landowners and corporations reap windfall payouts. When you vote,please join groups representing California anyone who can't fight back to be forced to give up their all existing California environmental laws and regulations are Here's an example of how the"taxpayer trap"works: taxpayers, firefighters, law enforcement officers, educators, property so wealthy developers can build giant retail stores, expressly protected. If local voters pass a measure to limit a new development small businesses,land conservationists,the environment,and shopping malls,and upscale housing developments. The Protect Our Homes Act protects all of us—and helps to 500 houses—instead of 2,000 houses that a developer homeowners. • Government can also take property without compensating families for future generations—while stopping government wants to build—under Prop.90,the developer could demand Say NO to the TAXPAYER TRAP. Vote NO on property owners. from taking your property simply to boost tax revenue. a payment for the value of the remaining 1,500 houses. PROPOSITION 90. When governments pass regulations that reduce the value Save our homes and businesses. Even if local community services and infrastructure would of your property, it's called regulatory taking. When this Please vote YES on Proposition 90. . be strained by the larger development, Prop. 90 would put CHIEF MICHAEL L. WARREN,President happens you should be compensated by the government for For more information,visit www.p'rotectourhomes2006.com. taxpayers at risk for payment. California Fire Chiefs Association your lost value. 0 Prop. 90 is not just limited to land-use laws. Read the CHIEF STEVE KRULL,President Government should not be able to take your home— MANUEL ROMERO, Eminent Domain Abuse Victim official analysis. Statewide consumer protection laws, California Police Chiefs Association' outright or through regulations that reduce the value of restrictions on telemarketing,and worker protections would EDWARD THOMPSON, JR., California Director your property—without it being for a legitimate PUBLIC BOB BLUE,Eminent Domain Abuse Victim all trigger new demands for payouts. American Farmland Trust use and without paying for what it takes. PASTOR ROEM AGUSTIN,Eminent Domain Abuse Victim REBUTTAL 1 ARGUMENT AGAINST . . 1 . 1 1 . 1 . REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 90 DON'T BE FOOLED BY SPECIAL INTERESTS!!! The public health and safety are PROTECTED. The Of course we can all agree that Californians deserve representative democracy and put the interests of a few above Proposition 90 protects our fundamental right to own— Legislature can enact ANY NEW LAW to ensure public protection from eminent domain abuse.And,if Prop. 90 was the well-being ofALL Californians." and keep—our homes and private property. It's called the health and safety. a well-designed reform of eminent domain,many thoughtful Prop. 90 is anti-taxpayer and anti-homeowner. "AMERICAN DREAM," and government should not be in Proposition 90 protects YOU from politicians who reward Californians would support it. That's why THE LEAGUE OF CALIFORNIA the business of destroying it. their campaign contributors by taking your private property However,the out-of-state drafter of Prop.90 is attempting HOMEOWNERS OPPOSES PROP. 90 and says: "Prop. Proposition 90 fixes the Supreme COUrt's outrageous Kelo and giving it someone else. a bait and switch-on voters. This poorly-written proposition 90 is a trap that actually hurts homeowners. It would cost decision. The REAL opponents of Proposition 90 are those who profit by TAKING OUR HOMES AND SMALL is loaded with unrelated and far-reaching provisions that will taxpayers billions .and erode basic laws that protect our Opponents—those who profit most from abusing eminent harm not protect,homeowners and be very expensive for all BUSINESSES—greedy government bureaucrats who want p ry P communities, our neighborhoods, and the value of our domain and taking private property—are shamelessly trying higher taxes and mega-developer campaign contributors California taxpayers. homes." to mislead you and distort what Proposition 90 does. who make millions using agricultural land, residential We can't afford to be misled. Say NO to the Taxpayer TRAP. Vote NO on 90. Opponents say read the fine print. WE AGREE. You'll neighborhoods, businesses, and churches seized through The hidden provisions in Prop.90 create a new category of www.NoProp90.com see: eminent domain to develop strip malls and other projects. lawsuits that allow wealthy landowners and corporations to Proposition 90 MAINTAINS EVERY current state IF THEY WIN,WE LOSE. • • sue for huge new payouts.These lawsuits and payouts would KENNETH W. WILLIS,President and local environmental, consumer protection, and public PROTECT OUR HOMES: VOTE YES ON 90. cost California taxpayers billions of dollars every year. League of California Homeowners safety law and regulation. Read Section 6, which states, That's why groups representing taxpayers, homeowners, CHIEF MICHAEL L. WARREN President "the provisions added to this section shall not apply to any MIMI WALTERS, Honorary Chair businesses,police and fire,environmentalists,and farmers all California Fire Chiefs Association a statute, charter provision, ordinance, resolution, law, rule or California Protect Our Homes Coalition ssoc urge you to Vote NO on 90. regulation in effect on the date of enactment.„ - MARTYN B. HOPPER,California Director THE LEAGUE OF WOMEN VOTERS OF CALIFORNIA JACQUELINE JACOBBERGER, President Proposition 90 HAS NOTHING TO DO with funding for National Federation of Independent Business(NFIB) says: "Prop. 90 would.fundamentally change our system of League of Women Voters of California - police or firefighters. JOHN M. REVELLI,Eminent Domain Abuse Victim 941 Arguments*** Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. * *Arguments 195 AN OVERVIEW OF STATE BOND DEBT k * * * *AN OVERVIEW OF STATE BOND DEBT j Prepared by the Legislative Analyst's Office Prepared by the Legislative Analyst's Office This section provides an overview of the state's accumulated budget deficit and other obligations. $8.4 billion in 2009-10. (These amounts assume Proposition 1D, which would authorize the current situation involving bond debt. It•also discusses Of this amount, $11.3 billion was raised through additional repayments from the BSA.) state to issue $10.4 billion of bonds to finance the impact that the bond measures on this ballot would, bond sales in May and June of 2004, and $3.7 Debt-Service Ratio, One indicator of the state's kindergarten through university education if approved, have on the state's debt level and the costs billion is available for later sales. The impact on debt situation is its debt-service ratio (I)SR). This ratio facilities. of paying off such debt over time. the General Fund of paying off these bonds is an indicates the portion of the state's annual revenues Proposition IE, which would authorize the state annual cost of about $1.5 billion. (Current law that must be set aside for debt-service payments on to issue $4.1 billion of bonds .for flood control 1 Background also allows for additional debt-service payments11 bonds and therefore are not available for other state I projects. What Is Bond Financing? Bond financing is a from the Budget Stabilization Account—BSA— programs. As shown in Figure 1, the DSR increased • established b Proposition 58 in,order to a off Proposition 84, which would authorize the state j type of long-term borrowing that the state uses to Y p pay in the early 1990s and peaked at 5.7 percent before l t'd repayments are also b Th li d bons earlier.) e bonds' to issue $5.4 billion of bonds to fund various raise money for various purposes. The state obtains the falling back to below 3 percent in 2002-03, partly resource-relatedprojects. guaranteed by the state's general taxing power. this money•by selling bonds to investors.In exchange,. due to some deficit-refinancing activities. The DSR � it agrees to repay this money,with interest accordingWhat Are the Direct Costs of Bond Financing? then rose again beginning in 2003-04 and currently The first four measures make up an infrastructure g p Y y' g g g Y bond package approved by the Legislature "and to a specified schedule. The.state's cost for using bonds depends primarily stands at 4.2 percent for infrastructure bonds. It on the amount sold their interest rates the time is ex ected to increase to a peak of 4.8 percent in Governor. The fifth measure was placed on the Why Are Bonds Used. The state has traditionally � � p p p ug ballot through the initiative process. used bonds to finance major capital outlay projects period over which they are repaid, and their 2008-09 as currently authorized bonds are sold. ,such as roads educational facilities prisons, maturity structure. For example, the most recently Impacts on Debt Payments. If the $42.7 billion sold general obligation bonds will be aid off over Effects of the Bond Propositions of bonds on this ballot are all approved, they would parks, water projects, and office buildings (that is, g g p require total debt-service payments over the life of infrastructure-related projects). This is done mainly a 30-year period with fairly level annual payments. On This B8110t q because these facilities provide services over many Assuming that a bond issue carries a tax-exempt There are five general obligation bond measures the bonds of about twice that amount. The average years, their large dollar costs can be difficult to pay interest rate of 5 percent, the cost of paying it off on this ballot, totaling $42.7 billion in new annual debt service on the bonds would depend on with level payments over 30 ears is close to $2 for the timing of their sales. If they were sold over a for all at once, and different.taxpayers benefit over p Y Y authorizations. These include: time from the facilities. Recently, however, the state each dollar borrowed—$1 for the amount borrowed Proposition 113, which would authorize the 10-year period, the budgetary cost would average has also used bond financing to help close major and close to $1 for interest. This cost, however, is state to issue $19.9 billion of bonds to finance roughly $2 billion annually. g p r 1 spread over the entire 30- ear period, so the cost reduction, air quality, Impact on the Debt-Service Ratio. Figure shortfalls in its General Fund budget. p Y p highway safety, traffic e q y, shows what would ha en to the state's DSR overtime ' after adjustingfor inflation iconsiderablypp , What T es o Bonds Does the State Sell? The o s less— and port security. Types f about $1.30 for each $1 borrowed. � Proposition 1C, which would authorize the state if all of the bonds were approved and sold. It would state sells three major types of bonds. These are: to issue $2.85 billion of bonds for housing and peak at 5.9 percent in 2010-11 and decline thereafter. • General Fund-supported Bonds. These are The $tate'S Current Debt Situation paid off from the state's General Fund, which development programs. o is largely supported by tax revenues. These Amount of General Fund Debt. As of July 1, bonds take two forms. The majority are general 2006,thestatehad about$45 billion of infrastructure- FIGURE 1 obligation bonds. These must be approved by related General Fund bond debt outstanding on which the voters and their repayment is guaranteed it is making principal and interest payments. This General Fund Debt-Service Rati by the state's general taxing power. The second consists of about $37 billion of general obligation type is lease-revenue bonds. These are paid off bonds and $8 billion of lease-revenue bonds. In 71/o from lease payments (primarily financed from addition, the state has not yet sold about $30 billion Added Cost From Sale of: the General Fund) by state agencies using the of authorized general obligation and lease-revenue 6 Bonds on November 2006 Ballot infrastructure bonds. Most of these bonds have been — Previously Authorized Bonds facilities the bonds finance. These bonds do not committed, but the projects involved have not et 5 require voter approval and are not guaranteed. p Y been started or those in progress have not yet reached As a result, they have somewhat higher interest their major construction phase. The above totals 4 - costs than general obligation bonds. do not include the budget-related bonds identified • Traditional Revenue Bonds. These also finance above. 3 capital projects but are not supported by the General Fund Debt Payments. We estimate General Fund. Rather, they are paid off from a that General Fund debt payments for infrastructure- 2 designated revenue stream—usually generated related general obligation and lease-revenue Bonds Already Sold by the. projects they finance—such •as, bridge bonds were about $3.9 billion in 2005-06. As 1 tolls. These bonds also are not guaranteed by the previously authorized but currently unsold bonds state's general taxing power and do not require are marketed, outstanding bond debt costs will voter approval. peak at approximately $5.5 billion in 2010-11. If, 1985-86 1995-96 2005-06 2015-16 P PP Y Projected • Budget-Related Bonds. In March 2004, the in addition, the annual costs of the budget-related voters approved Proposition 57, authorizing bonds are included, total debt-service costs were 'Ratio of debt-service payments to revenues and transfers. Excludes budget-related bonds. $15 billion in bonds to help pay off the state's $5.1 billion in 2005-06, and will rise to a peak of. 961 An Overview of State Bond.Debt*** ***An Overview of State Bond Debt 197 i 1 LIST OF CANDIDATES FOR STATEWIDE LIST OF CANDIDATES FOR STATEWIDE ELECTIVE- OFFICE ELECTIVE OFFICE * ' Proposition 34 was adopted by the voters at the November 7, 2000 General Election. TREASURER BOARD OF EQUALIZATION Under this measure, any candidate for Governor, Lieutenant Governor, Secretary of State, Lockyer, Bill Democratic District Controller, Treasurer,Attorney General, Insurance Commissioner, or Member of the Board of Noonan,E. Justin American Independent Campbell, David Peace and Freedom Equalization, who accepted the voluntary expenditure limit, has an opportunity to purchase a statement, not to exceed 250 words, in the California Voter Information Guide. *Parrish, Claude Republican *Neighbors, David J. Republican *Sanders, Gerald Peace and Freedom *Watson, Kennita Libertarian The expenditure limit for candidates running for Governor in the November 7, 2006 General Election is$11,150,000.The expenditure limit for candidates running for Lieutenant Governor, *Smithson,.Marian Libertarian *Yee,Betty T. Democratic Secretary of State,Controller,Treasurer,Attorney General,and Insurance Commissioner in the *Thakker, Mehul M. Green November 7,2006 General Election is$6,690,000.The expenditure limit for candidates running District 2 ' for the Board of Equalization in the November 7, 2006 General Election is $1,672,000. ATTORNEY GENERAL *Leonard, Bill Republican The following list of candidates for statewide elective office is current through August 14,2006. Brown;Jerry Democratic Michlin,Willard Del Libertarian For a current list of candidates lease see htt //www.ss.ca. ov/elections/elections_cand.htm. * *Perry, Richard R. Peace and Freedom P P� g Harrison,Jack Peace and Freedom In the following list, an asterisk (*) designates candidates who have accepted the voluntary *Raboy,Tim Democratic spending limits. � Poochigian, Chuck Republican *Weissman,Kenneth A. Libertarian District 3 *Wyman, Michael S. Green Christian-Heising,Mary Democratic GOVERNOR SECRETARY OF STATE Finley, Mary Lou Peace and Freedom Angelides, Phil. Democratic *Akin,Margie Peace and Freedom INSURANCE COMMISSIONER *Steel Michelle Republican *Camejo,Peter Miguel Green *Bowen,Debra Democratic Burden, Jay Earl American Independent *Jordan, Janice Peace and Freedom *Hill,Forrest Green *Bustamante, Cruz M. Democratic District 4 *Noonan, Edward C. American Independent *Lightfoot, Gail K. Libertarian ,Chu Jud Democratic ' *Cafiero, Larry Green y *Olivier,Art Libertarian *McMillon, Jr., Glenn American Independent *Forsch, Glen Republican *Condit,Tom Peace and Freedom Schwarzenegger,Arnold Republican *McPherson, Bruce Republican *Henderson, Cindy Varela Peace and Freedom Ogden, Dale E Libertarian LIEUTENANT GOVERNOR CONTROLLER Poizner, Steve Republican *Kadera,Monica W. Libertarian *Alexander, Stewart A. Peace and Freedom *Barr6n,12 zabeth Cervantes Peace and Freedom *Garamendi, John Democratic Campbell,Warren Mark American Independent *King, Jim American Independent *Chiang,John Democratic ti *McClintock,Tom Republican *Strickland,Tony Republican *Shaw, Lynnette Libertarian *Tello,Donna Libertarian *Warren, Donna J. Green *Wells, Laura Green *Candidate has accepted voluntary spending limits. *Candidate has accepted voluntary spending limits. 98 1 List of Candidates for Statewide Elective Office List of Candidates for Statewide Elective Office 199 . CANDIDATE S GOVERNOR LIEUTENANT GOVERNOR • As the state's chief executive officer, oversees most state departments and agencies and appoints judges. • Assumes the office and duties of Governor in the case of impeachment, death,resignation, removal from office, or absence from the state. • Proposes new laws and approves or vetoes legislation. vote. p pp g • Serves as President of and presides over the State Senate and has a tie-breaking � • Prepares and submits the annual state budget. • Chairs the Economic Development Commission, is a member of the State Lands Commission, and sits on the +' boards of the California university systems. • -Mobilizes and directs state resources during emergencies. • Serves as an ex-officio member of the California State World Trade Commission. ART OLIVIER www.electArt.com LYNNETTE SHAW 7336 Santa Monica#822 (415)209-3996 Libertarian Party I Libertarian Party West Hollywood,CA 90046 lnnette@voteshaw.info www.voteshaw.info CUT SPENDING! California recalled the Governor three years ago when he proposed a$96,000,000,000 budget. Now it's The war against patients and their physicians must stop. Medical cannabis has been legal for ten years, but the authorities $131,000,000,000 plus $43,000,000,000 in bonds on the November ballot.NO BENEFITS FOR ILLEGAL IMMIGRANTS. continue to arrest caregivers, patients, and doctors. This is a waste of time, human resources, and taxpayers money. My Giving free healthcare and education to illegal immigrants encourages more illegal immigration. California cannot afford Marijuana Peace Plan has been in operation for nine years in Marin County. This program has removed many illegal drug it. END GRIDLOCK. Spend gasoline taxes and vehicle license fees on building more lanes and allow the construction of dealers from our streets,protected patients,and improved the quality of the medicine. Please join with me and Willie Nelson private toll roads for commercial trucks.Art Olivier cut taxes and improved services as Mayor and will do it again as our next to help save family farms with industrial hemp and to protect your medical rights.I am Lynnette Shaw,and I would appreciate Governor! your vote for Lt. Governor.www.ca.1p.org JANICE JORDAN www.janicejordan.org DONNA J. WARREN P.O. Box 88808 (213)427-8519 Peace and Freedom Party Green Party Los Angeles,CA 90009 ecottry@socal.rr.com www.donnawarren.com Low-Cost Housing.Universal Health Care. Livable Wage. VOTE YOUR CONSCIENCE! NOT YOUR FEAR, I Running with the Million Votes for Peace Campaign, in 1999, I sued the CIA for the crack cocaine infestation in South Central, and, in 2004, 1 helped coordinate Prop. 66 to amend California's Three Strikes Law. I willoguide the Legislature PETER MIGUEL CAMEO 1710 Broadwa #122 to represent the people, not corporations and special interests. Don't be fuelish—stop voting for oil companies at the gas J y (510)587-0807 pump. Stop Global Warming,and keep California competitive in science/medical research. For,my complete platform, see Green Party Sacramento,CA 95818 info@votecamejo.com www.donnawarren.com. www.votecamejo.com I You've heard the expression, "I would have to write a book" Well, I did. It's called: "California: Under Corporate Rule" STEWART A.ALEXANDER 40485 MumetaHot Springs Rd.,Ste. 149 (909)223-2067 Corporations control our electoral system, want to privatize our schools, name our sports fields, control our media, destroy Murrieta,CA 92563 stewartalexander4paf@comcast.net our ecology,and promote wars of plunder.Most profitable n Peace and Freedom Party ab e a o state taxes in California.Ninety percent of r p p Ppay Y P our www.salt-g.com people on average have received no increase in inflation adjusted pay in 35 years and our real minimum wage has dropped g pp dramatically while our economy more than doubled and corporate profits soared. My web site shows how a FAIR TAX Working people need a greater voice in government. can raise an additional $25 billion for our budget, allowing us to dramatically increase education funding, begin a massive move to alternative energy,and modernize our infrastructure,while reducing most people's taxes. Immigrants actually help create jobs. Marriage must be an option for everyone. The death penalty, three strikes, and racial profiling must end. Our outdated, exclusionary, winner-take-all money-controlled electoral system has been universally rejected. We need public funding,proportional representation,and ranked choice voting,where people feel free to vote for the candidates they support and can hear all points of view. Please visit votecamejo.com to help us plan and execute these ground-breaking opportunities for positive change in California. Thank you for your support. EDWARD C. NOONAN 1606 Gold St. (530)743-6878 American Independent Party Marysville,CA 95901 vote2006@ednoonan4gov.org www.ednoonan4gov.org See my webpages: ednoonan4gov.org,http://www.aipca.org,,http://www.cons'titutionparty.org The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy,Each statement was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. 1001 Candidate Statements*** - ***Candidate Statements 1 101 J LIEUTENANT GOVERNOR SECRETARY OF STATE (Continued) TOM McCLINTOCK 1029 K Street, Suite 44 (916)446-1246 • As the state's chief elections officer, administers and enforces election laws and keeps records of all campaign Republican Party Sacramento,CA 95814 info@tommcclintock.com and lobbyist disclosure statements required under the Political Reform Act. www.HelpTom.com • Files official documents relating to corporations, trademarks, the Uniform Commercial Code, notaries public, A generation ago, California was a land of opportunity with low taxes,plentiful jobs, affordable housing, cheap electricity, and limited partnerships. and abundant clean water.Our children were secure in their homes and our families were secure in their property.We enjoyed „ the finest highway system in the world and the finest schools stem in the country. The only thin .that has changed between ' � g y y y y y g g • Collects and preserves historically valuable papers and artifacts in the California State Archives. 1 then and now is bad public policy—and together we can fix that. During the recall election, I offered a comprehensive plan to restore California's quality of life,and I will tenaciously pursue these reforms as Lt. Governor. For 25 years I have fought • Serves as an ex-officio member of the California State World Trade Commission. to.roll back the taxes that are crushing our families, to rein in the bureaucracies that are wasting our money, to reduce the regulations that are destroying our economy, to oppose the illegal immigration that is overwhelming our services, and to restore our long-neglected public works. I began the movement to abolish California's car tax that now saves an average family $490 in annual DMV fees. I am spearheading the effort to stop government from seizing one citizen's property for the private gain of another. And, I continue to battle waste and fraud in Republican and Democratic administrations. DEBRA BOWEN 578 Washington Blvd.#409 (310) 823-3106 Together, we can restore to our children the Golden State that our parents gave to us. Please visit my Web site at Democratic Party Marina del Rey,CA 90292 info@debrabowen.com www.HelpTom.com to*ee my proposals and to help this grassroots campaign for California's future. www.debrabowen.com California must,never be like Florida or Ohio. Election results must be free from doubts about fraud and manipulation. As JOHN GARAMENDI P.O. Box 496 (916) 863-6881 Chairwoman of the Senate Elections Committee, I'm fighting to make sure your vote is counted accurately and to end the Democratic Party Sacramento,CA 95812 info@garamendi.org domination of big money on elections. Your Secretary of State must bring integrity back to the electoral process. I fought to www.garamendi.org require a paper trail for electronic voting machines and to outlaw campaign contributions from voting machine manufacturers. Since my first day in public office, I've refused to accept gifts as an elected official, and I've pressed to limit the influence It's time we use the Lieutenant Governor's office as a forceful advocate for children, hardworking families, and retired of special interest money. I've written bills requiring clear disclosure about who is paying to put initiative petitions on the Californians.That's my approach as Insurance Commissioner—protecting consumers,punishing fraud,and delivering results: ballot. I wrote the first proposal to allow voters to get vote-by-mail ballots automatically. I'm working to expand the Safe Over$1 billion in insurance rebates—$22 billion in auto insurance savings—$24 million in additional homeowner benefits to at Home program in the Secretary of State's office, which allows victims of domestic violence to keep,their abusers from fire victims—$46 million in insurance companyfines.As Lieutenant Governor I will be the same powerful advocate—working knowing where they live.I'm a fighter for consumer protection,privacy rights, open government, and choice. I led the nation for you to fully fund schools,helping small businesses thrive in the world marketplace,fighting to provide every Californian by authoring a landmark measure to prevent your Social Security number from misuse and-to protect you from identity quality healthcare that values people before profits,and protecting women's rights.As a University of California Regent and theft. Senators Barbara Boxer and Dianne Feinstein, the National Organization for Women-California, California Nurses State University Trustee,I'll be the guardian of higher education—promoting excellence in education,fostering research,and Association,California Federation of Teachers,and the Sierra Club have joined together to support'me.Please join me in the creating innovation.On the State Lands Commission,I'll take the same approach I used as President Clinton's Deputy Interior fight to clean up campaigns and elections. I respectfully request your vote. Secretary protecting California's magnificent coast,parks, and natural resources.I'll address climate change by promoting i conservation and alternative fuels. I oppose more oil drilling off our coasts and oppose excessive oil company profits. I'll fight to stop corporate polluters.I'll work with the Governor and Legislature to accomplish these goals. California's teachers, MARGIE AKIN 20212 Harvard Way (951)787-0318 police,firefighters,Senator Feinstein,and Al Gore share my vision and respect my independence. They endorse my candidacy. Peace and Freedom Party Riverside,CA 92507, margieakin@hotmail.com I stand by my record as Insurance Commissioner,Deputy Interior Secretary, State Senator, Academic All-American at U.C. www.akin2006.com Berkeley,Harvard MBA,Peace Corps Volunteer,husband,and father.I respectfully request your vote. www.garamendi.org New technology should help provide better services for voters and improve voter turnout to strengthen democracy.Instead we get insecure and faulty voting systems.We need to end corruption and corporate influence throughout the election process. FORREST HILL . 815 Washington Street, Suite 24. (415) 839-7300 Green Party Oakland,CA 94607 forrest@VoteForrest.org www.VoteForrest.org California's electoral system needs a complete overhaul, not bandages!We must end gerrymandering and ensure all citizens are fully represented in government;Give citizens more choices with Instant Runoff Voting; Demand all votes are accurately . counted and voting machines produce voter verified paper ballots;Increase voter turnout by allowing election day registration; End corruption by enacting new restrictions on all election-related contributions and implementing fair public financing laws.—I am a Financial Advisor with a Ph.D.from MIT in Marine Biology. I have the qualifications to fix our system and bring Free and Fair elections to California. The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. 102 1 Candidate Statements*** ***Candidate Statements 1 103 SECRETARY OF STATE CONTROLLER (Continued) BRUCE McPHERSON 925 University Ave. www.mcpherson2006.com • As the state's chief fiscal officer, acts as the state's accountant and bookkeeper of all public funds. Republican Party Sacramento,CA 95825 I • Administers the state payroll system and unclaimed property laws. In 2005, I was nominated to be Secretary of State by the Governor and unanimously confirmed by every Democrat and . Serves on numerous boards and commissions including the Board of Equalization and the Board of Control. Republican in the Legislature. I have brought nonpartisanship to the Office,restored confidence in our elections process,and overseen two successful statewide elections.My most important mission is to preserve our basic freedom—the right to vote. o Conducts audits and reviews of state operations. When I became Secretary of State,the Office was in political,economic, and structural disarray. California was unprepared to comply with new federal voting requirements. I've worked tirelessly to bring integrity to the Office. I traveled to each of California's 58 counties and met with every elections official to effectively administer elections.Within weeks,I restored$169 million in federal elections funds that had been frozen for nine months.California now leads the nation in modernizing voting TONY STRICKLAND P.O.'Box 1371 (805)297-4529 technology with a voter registration database that reduces the potential for fraud.I've fought for campaign finance reform and support immediate public Internet disclosure of campaign contributions. To make the Office more efficient and responsive, Republican Party Thousand Oaks,CA 91358 tony@tonystrickland.com we encourage people to do business online rather than in line. I have worked to improve California's international trade www.tonystrickland.com opportunities so California remains the 6th largest.economy in the world. My positive record speaks for itself.I'm proud to be The politicians are arguing about raising taxes, but I'm going to tell you the secret they don't want you to know. If we cut supported by the California Teachers Association,California Sheriffs Association,California Women's Leadership Association, the waste, fraud, and corruption out of the bureaucracy—and required those applying for state programs to provide proof of California Small Business Association, Californiaarm Bureau, and a bipartisan group of elected officials. I respectfully a citizenship—we could balance our budget,fix our roads,protect our neighborhoods,and pay our teachers what they deserve, request your vote for Secretary of State.Please visit www.mcpherson2006.com. without raising taxes. As your Controller, I'll audit the bloated LA Unified School District, and I'll see to it that students are learning to read,write, and speak English.Am I willing to fight for you?Absolutely. During the energy crisis,when the GLENN McMILLON, JR. 14400 E. 14th St.,Apt. ( ) politicians were afraid to rock the boat,I sued Gray Davis over his secret contracts with the energy companies—and won.I've A t 11 510 483-2845 led the battle to eliminate the double taxation on gasoline.And when others were going along with multi-billion dollar budget American Independent Party San Leandro,CA 94578 mcmillon@alum.mit.edu deficits,I led the fight to restore accountability and common sense.I am endorsed by California's major taxpayer organizations www.aipca.org because they know that I won't back down when your tax dollars are at stake. Waste hurts us all. It robs our classrooms, Pro-Life.Pro-Family. Pro-Enforcement.www.myspace.com/mcmillon2006.www.aipca.org. shortchanges our teachers,and leaves us all stranded in traffic.As your Controller,I'll take on the bureaucracy in every area of governmerii,from welfare to the DMV to our public health system.You work hard for your money,and you have a right to have your tax dollars spent honestly.You can help by visiting www.TonyStrickland.com. GAIL K. LIGHTFOOT P.O.Box 598 (877)616-1776 Libertarian Party Pismo Beach,CA 93448 SOSVoteLP@aol.com www.smartvoter.org LAURA WELLS P.O.Box 16025 info@LauraWell$.org Green Party Oakland,CA 94610 www.LauraWells.org FULLY INFORM VOTERS. I now see more hope for California than I have for a long time.I see many people fed up and turning to positive action.As my contribution, I would like to serve as your State Controller. The Controller is the state's bookkeeper, the one who reports to the citizens who elected her exactly how their money is being managed.My over 20 years in financial systems—investments, pension funds,union dues accounting,real estate loans—prepare me for the job. My lifelong commitment to saner ways of living prepares me to ensure that California's budget is in line with California's values.Imagine a Controller who understands that a great environment and great economy work together, not in opposition. A Green Controller understands that crime prevention not only keeps the public safer than ever-expanding prisons, it also saves money we can use toward regaining our world-class educational system. In healthcare we can shift from exorbitant administrative costs, and worse and worse healthcare for fewer people,to healthcare for all at less cost.I support electoral reform,including ranked choice voting(instant runoff), to open up our elections, improve our democracy, and lower costs. For details of why I have hope, please see my website www.laurawells.org. This year,join the momentum toward real change. 9 The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates- and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy.Each statement.-was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statembnts could otherwise be qualified to appear on the ballot. of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. 1041 Candidate Statements*** ***Candidate Statements 1 105 CONTROLLER TREASURER (Continued) JOHN CHIANG 600 Playhouse Alley#504 (626)535-9616 • As the state's banker, manages the state's investments. Democratic Party Pasadena,CA 91101 info@chiangforcalifornia.com www.chiangforcalifornia.com • Administers the sale of state bonds and notes and is the investment officer for most state funds. California needs a Controller to slam Shut corporate tax loopholes and insist that the oil and insurance companies pay their • Chairs or serves on several commissions, most of which relate to the marketing of bonds. fair share.California needs a Controller to simplify taxes for middle class families and make it easy to calculate and pay taxes ! online.California needs a Controller to ensure our schools have the resources to prepare our children for a more competitive • Pays out state funds when spent by the Controller and other state agencies. { world.That's why I am running for State Controller.For 20 years I have fought for fair state tax and sound fiscal policies.After graduating with a degree in Finance and then a Law Degree from Georgetown,I worked as a policy advisor to the California State Controller's office.As a member and chair of the Board of Equalization and the State Franchise Tax Board I am a strong voice for taxpaying families and small businesses.I use my tax policy expertise to stand up to corporate lawyers and demand MARIAN SMITHSON (626)919-t593 an end to special interest tax giveaways. I know how to audit and expose wasteful government spending to ensure our tax money is spent on vital services. The San Francisco Chronicle said that my experience gives me "a solid foundation to become Libertarian Party mariansway@earthlink.net what is essentially the states chief financial officer." The Sacramento Bee called me "one of the finest young prospects the Democratic Party has produced in recent years."I will fight for full funding for quality schools.That's why I am endorsed by California needs leadership with fiscal responsibility.Vote NO on bond measures. California's classroom teachers.For more information: www.ChiangforCalifornia.com. ELIZABETH CERVANTES BARRON 1720 Main Street (951)787-0318 CLAUDE PARRISH P.O.Box 2427 (213) 688-8862 aol.com Republican Party Palos Verdes,CA 90274 parrishfortreasurer@gmail.com Venice,CA 90291 ebtlaloc Peace and Freedom Party @ www.smartvoter.org/vote/Parrish www.pfpboe.org State bond interest payments are consuming an ever in portion of the state's budget. This puts pressure on the Raise taxes on the rich;lower taxes on workers. Legislature to increase all state taxes. Any increase in Corporate,personal income taxes, or sales taxes will cause a stall in the California economy and undoubtedly cause businesses to leave the State. The State is already too deep in debt! First,the DONNA TELLO 13446 Poway Road#202 donnatello4cacontroller@cox.net State Treasurer must go before the Legislature to oppose all but the most vital or cost effective bond issues! Second,having Libertarian Party Poway,CA 92064 www.donnatello.da.ru held NASD Security licenses has given me an understanding of the financial markets. We need to eliminate dealing with the "Middle Men"from"Wall Street"that receive hundreds of millions of dollars in underwriting fees and instead have our bonds underwritten by allocation to California-based brokerage firms.Not only will the state save hundreds of millions of dollars, Control spending,not people.Protect taxpayers,not special interests. California will receive taxes from those California-based firms. Third, the Tteasurer's office needs�o be accessible to the public and run in a cost-effective,efficient manner.Here's why.For California Citizens,State Bonds are exempt from Federal and State personal income taxes; however,these bonds are not available to the average California citizen because brokerage firms do not offer them in amounts of less than$10,000.I will institute a small investor program so that Californians with as little as $100 can invest in these tax-exempt bonds. I seek your vote and have been endorsed by the Howard Jarvis Taxpayer Organization and many leading state legislators. - MEHUL M. THAKKER 815 Washington St.#52 mehul@votethakker.com Green Party Oakland,CA 94607 http://wwwVoteThakker.com Corporate money should,not buy political influence, so I don't take contributions from big business! We should protect our State pensions and invest our tax dollars to fund better schools, universal healthcare, more affordable housing, community development, and clean energy programs. We should forgive student loans so education hecomes a benefit and not a burden. Banks that hold California's money should stop predatory and environmentally destructive lending, and we should move our State's investments into community development banks and credit unions that support local economies. We can balance California's budget immediately if the top 1% of earners pay the same local and state tax rates as the poorest citizens in California. We must implement a fair policy of legalization for undocumented workers and ensure that all workers are paid ! a fair minimum wage, with inflation protection.—I believe our competitiveness in the world economy and ability to foster peace globally depends on our ability to chart a new course. Vote Thakker, and help me work for economic justice for all q Californians. i The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. I 1061 Candidate Statements*** ***Candidate Statements 1 107 ATTORNEY GENERAL INSURANCE COMMISSIONER 1 As the state's chief law officer, ensures that the laws of the state are uniformly and adequately enforced. Oversees and directs all functions of the Department of Insurance. i • Heads the Department of Justice,which is responsible for providing state legal services and support for local law • Licenses, regulates, and examines insurance companies. enforcement. • Answers public questions and complaints regarding the insurance industry. • Acts as the chief counsel in state litigation. • Enforces the laws of the California Insurance Code and adopts regulations to implement the laws. • Oversees law enforcement agencies, including District Attorneys and Sheriffs. I MICHAEL S.WYMAN P.O.Box 9380 (415)785-3448 TOM CONDIT 2124 Kittredge St.#174 (510)845-4360 comcas 4mike t.net Peace and Freedom Party Berkeley,CA 94704 condit@peaceandfreedom.org Green Party San Rafael,CA 94912 vote @ www.tomcondit.org ww.tomcondit.org Most Californians prefer life imprisonment without parole to the death penalty. Most Californians oppose lengthy prison Insurance company profits soar, but millions don't have health,care or real protection against accident and disaster. While sentences for nonviolent offenders. Most Californians agree that the War on Drugs has been a complete failure. Most insurance companies pour money into"tort reform"schemes to deprive ordinary people of legal assistance,they spend billions Californians think that their police have better things to do than arrest the terminally ill for using medical marijuana. Most on their own lawyers to evade paying claims. The bipartisan "reforms" of workers' compensation let insurance companies endlessly delay needed medical treatment for injured workers by second-guessing doctors and pharmacists.They make more Californians don't believe they should be spied upon by their own government. Most Californians want equal rights for in profits on workers'compensation than they pay for medical care.I advocate putting human need before insurance company immigrants, including the right to live and work here in America in peace.I agree with them. We need to put the justice back in the justice system. We do this by enforcing laws humanely and challenging the laws and policies that deny the people of profits. Let's publicly,fund and manage a single system of quality health care for all, a state basic auto liability plan, and a California their rights. We need an attorney general who defends the people of California as energetically as we prosecute the single workers'compensation fund—all without insurance company profits,lawyers, or red tape. I will fight discrimination violent offender.I will be that kind of Attorney General.I ask-for your support.Thank You. based on race, sex,age,or geography. KENNETH A.WEISSMAN 8484 Wilshire Blvd., Suite 850 (323)655-4529 LARRY CAFIERO P.O. Box 203 (831)438-1401 Beverly Hills CA 90211-3222 CalAG2006@yahoo.com Green Party Ben Lomond,CA 95005-0203 larry4inscomm@earthlink.net Libertarian Party y http://www.votecafiero.com www.ElectKenWeissman.com o I will fight for your rights.Absolutist on Second Amendment. Secure our borders NOW. Candidate statements, once free, now cost $20 per word. Fight pay-to-play government—Vote Green. My statement: http://www.votecafiero.com/statement JACK HARRISON 1312 Cornell Ave. (510)527-9584 Peace and Freedom Party Berkeley,CA 94702 JackLHa@Pacbell.net www jackharrison.org Abolish the inhumane death penalty.Decriminalize marijuana.Expand parole and diversion services.Eliminate the disastrous "three strikes" sentencing. Use State funds for people's needs. Prosecute the corporate criminals and those who defile our environment. I The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot; of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. y *Candidate Statements 1 109 108 I Candidate Statements*** *�t i BOARD OF EQUALIZATION BOARD OF EQUALIZATION (Continued) Serves on the Board of Equalization, California's elected tax commission, a body that: DISTRICT 2 (continued) i continued • Oversees the administration of over two dozen tax and fee programs including sales and use, cigarette and TIM RABOY P.O.Box 132 (209)251-9695 tobacco, alcohol, and fuels tax. Democratic Party Galt,CA 95632 info@timraboy.com • Serves as the appellate body for California income and franchise tax cases. www.timraboy.com - j I am a Supervising Investigator for the Board of Equalization(BOE),Investigations Division, fourteen-year BOE employee, • Oversees the administration of property tax statewide. and an Elected City Councilmember.Please visit www.timraboy.com. I , DISTRICT 1 DISTRICT 3 BETTY T.YEE 601 Van Ness Avenue#E3-438 www.BettyYee2006.com MICHELLE STEEL 27520 Hawthorne Blvd. #270 (310)971-5865 Democratic Party San Francisco,CA 94102 Republican Party Palos Verdes,CA 90274 info@steelforboe.com www.steelforboe.com All Californians deserve to be treated fairly by their government.During the time I have served on the Board of Equalization, As a fiscal conservative,I have been proud to serve,as Chief Deputy to our current Member of the Board of Equalization.Now my actions and votes on all tax matters that have come before the Board demonstrate a strong commitment to fairness that the incumbent is retiring, it is vital that taxpayers have another fiscal watchdog to take his place. I will work to simplify and honesty. My experience in making careful decisions with your tax dollars, my strong sense of fairness in interpreting tax rules so that businesses and individuals will not be constantly victimized by a bureaucracy that frequently oversteps its• California's tax laws, and my unblemished record of integrity'and honesty make me your best choice to continue serving authority.As a rock-solid fiscal conservative,I will be the Taxpayer's Advocate against the bureaucracy.And,believe me,we and providing leadership as the First District Member on the Board of Equalization. I will oppose special tax breaks for the need voices to speak out and defend taxpayers! I have witnessed firsthand how the taxing agencies assume taxpayers are guilty wealthy.I will be a voice for all working persons.As your guardian of the state's revenues,my objective is to ensure California until proven innocent. And, I believe that approach is ul;-American. My philosophy is that every hearing should begin with has the resources'needed to provide a bright future and opportunities for all of us and for generations to come—this means the presumption that the taxpayer is innocent. As a businesswoman, wife, and mother, I know how tough it can be to make quality schools in every community, access to health care for every Californian, a pristine natural environment, affordable ends meet. I believe the hardworking families of California deserve an Advocate who will stand with them against abusive . • housing, adequate transportation systems, and safe neighborhoods. I am proud to have earned the endorsements of a broad I array of organizations that represent the interests of teachers, nurses, firefighters,peace officers, workers, women, students, i government bureaucracies. As a board member of the California World Trade Commission, I also became convinced that our high California taxes are harming our competitiveness in the world economy. I am an experienced,fiscally conservative and taxpayers—all of whom recognize my financial expertise and commitment to protecting the interests of hardworking professional who will not need on-the-job training, because I've-already been on the job defending taxpayers. I would be Californians.I would be honored to continue serving you on the Board of Equalization. honored to have your support.For any questions,please contact me at www.steelforboe.com. � o DISTRICT 2 DISTRICT 4 BILL LEONARD P.O.Box 277090 (916)441-1043 Ext.2 Republican Party Sacramento,CA 95827 leonard@billleonard.org GLEN 'FORSCH Burbank,Scott Road (818) or ch20 www.billleonard.org Republican Party Burb CA 91504 G1enForsch2000@aoLcom www.GlenForschForBOE.com California is a terrific place to live,but we need leaders who are not afraid to stand up and fight for the rights.of taxpayers. As a Member of the State Board of Equalization—the only elected office in America with the job of protecting the rights of Hi, I'm Glen Forsch. I am running for the Board of Equalization, Fourth District. I know how difficult it is to earn a living taxpayers—I have worked hard to hold government accountable.The State Board of Equalization is an independently elected and pay our bills in California. I know it's a great RESPONSIBILITY TO COLLECT THE TAXPAYER'S MONEY. I join tax panel.that makes the final decision in disputes between taxpayers and government bureaucrats.Taxpayers deserve to have all REPUBLICANS,DEMOCRATS,INDEPENDENTS,AND ALL OTHER PARTIES,who want California TAXPAYERS an advocate fighting for their interests—and that is what I have done as a Member of the State Board of Equalization.Illegal and BUSINESSES to be Treated Fairly. I will do what it takes to get rid of the INHERITANCE TAX. I do not want the State immigrants are among those who do not pay their fair share of taxes yet get their full share of government benefits.Not enough Government to Tax and Take Your Inheritance.I will not stand by and let you,your parents,or your children be TAXED INTO is being done to make sure that illegal aliens pay all the taxes they owe. It is not fair that law-abiding California families and POVERTY.Gather your Family,Friends,and Neighbors to VOTE FOR GLEN FORSCH. business owners have,to pay all their taxes and still get hit by government investigators when they are.trying to comply with California's complex and excessive tax laws while illegal immigration laws go unenforced. We can do better. Please visit " my website (www.billleonard.org) to learn more about the State Board of Equalization and my record,as an advocate for taxpayers.I will continue to do all I can to make sure government is held accountable for how it spends your hard-earned tax dollars.I would be honored to have your vote on November 7th. I - The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates The order of the candidates is determined by random alphabet drawing.Statements on this page were supplied by the candidates and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense and have not been checked for accuracy.Each statement was voluntarily submitted by the candidate and is printed at the expense of the candidate.Candidates who did not submit statements could otherwise be quaked to appear on the ballot. of the candidate.Candidates who did not submit statements could otherwise be qualified to appear on the ballot. 1101 Candidate Statements*** ***Candidate Statements 1111 ' d i 1 I: I i BOARD OF EQUALIZATION DISTRICTS BY COUNTY JUSTICES OF THE SUPREME &APPELLATE COURTS t, For more information about the Supreme Court Justices and the Appellate Court Justices,please ' W visit the Secretary of State's website at www.voterguide.ss.ca.gov or www.ss.ca.gov or call U our toll-free voter line at 1-800-345-VOTE (8683). f Board of Equalization, District 1 a Alameda,Colusa,Contra Costa,Del Norte,Humboldt,Lake, Marin,Mendocino,Monterey,Napa,San Benito, San Francisco, I� San Luis Obispo,.San Mateo, Santa Barbara, Santa Clara, THE ELECTORAL PROCEDURE Santa Cruz, Solano, Sonoma,Trinity,and Yolo Board of Equalization, District 2 Under the California Constitution,justices of the Supreme Court and the courts of appeal are !' Alpine,Amador,Butte,Calaveras,El Dorado,Fresno, subject to confirmation by the voters.The public votes"yes" or"no"on whether to retain each Glenn,Inyo,Kern,Kings,Lassen,Los Angeles,Madera, Mariposa,Merced,Modoc,Mono,Nevada,Placer,Plumas, JUSt1Ce. Sacramento, San Bernardino, San Joaquin, Santa Barbara, I cingsno �' Shasta, Sierra, Siskiyou, Stanislaus, Sutter,Tehama,Tulare, These judicial offices are nonpartisan. Tuolumne,Ventura,and Yuba j � Board of Equalization, District 3 Before a person can become an appellate justice, the Governor must submit the candidate's h .Imperial,Los Angeles,orange,Riverside, name to the Judicial Nominees Evaluation Commission which im comprised of public members San Bernardino, San Diego s cop I and lawyers. The commission conducts a thorough review of the candidate's background and Board of Equalization, District 4 San Francisco . ° , a. Los Angeles ' qualifications, with community input, and then-forwards its evaluation of the candidate to the � a San Mateo•* , , Governor. " Santa Cruz The Governor then reviews the commission's evaluation and officially nominates the candidate, whose qualifications are subject to public comment before examination and ' review by the Commission on Judicial Appointments. That commission consists of the Chief the Attorney General of California and a senior Presiding Justice.,of the ® m Justice of California, y g , Courts of Appeal. The Commission on Judicial Appointments must then confirm or reject the jnomination. Only if confirmed does the nominee become a justice. j.P San Bemaraino a t e !' Following confirmation, the justice is sworn into office and is subject to voter approval at the I h• ®� next gubernatorial election and thereafter at the conclusion of each term.The term prescribed Equalization Districts Orange P—ide District by the California Constitution for justices of the Supreme Court and courts of appeal is 12 District 2 years. Justices are confirmed by the Commission on Judicial Appointments only until the next District 3 San Diego Unpenal. - District 4 ® gubernatorial election, at which time they run for retention of the remainder of the term, if any, of their predecessor, which will be either four or eight years. jE (Elections Code Section 9083.) 7 112 1�Board of Equalization Districts* *Justices of the Supreme&Appellate Courts_ 1 113 °rr I TEXT OF PROPOSED LAWS * (PROPOSITION 1B CONTINUED) * TEXT OF PROPOSED LAWS for more than two fiscal years during any period of 10 consecutive fiscal 8879.23. The Highway Safety, Traffic Reduction,Air Quality, and determining which project shall be included in the program for funding. PROPOS ITION 1A years, which period begins with the first fiscal year commencing on or Port Security Fund of 2006 is hereby created in the State Treasury. The These benefits shall include,but are not limited to,the following: This amendment proposed by Senate Constitutional Amendment after July 1, 2007,for which the transfer required by subdivision (a) is Legislature intends that the proceeds of bonds deposited in the fund shall (A) A finding that the project provides quantifiable air quality 7 of the 2005-2006 Regular Session(Resolution Chapter 49, Statutes of suspended. • be used tofund the mobility,safety,and air quality improvements described benefits. 2006)expressly amends the California Constitution by amending a section in this article over the course of the next decade. The proceeds of bonds thereof;therefore,existingprovisions proposed to be deleted are tinted (B) The transfer required by subdivision(a)shall not be suspended (B) A finding that the project substantially increases the safety for p p p p duringan scat year i a full repayment re uired b a statute enacted issued and sold pursuant to this chapter for the purposes specified in this Y fiscal Y f f9 Y travelers in the corridor. i in strikeout-type and new provisions proposed to be added are printed in chapter shall be allocated in the following manner: in accordance with subparagraph (C)of paragraph (1)has not yet been p f g italic type to indicate that they are new. � a 1 Four billion five hundred million dollars $4,500,000,000 (8) In adopting a program for funding pursuant to this subdivision, completed. O O fi ( ) the commission shall make a finding that the program is(i)geographically PROPOSED AMENDMENT TO SECTION 1 OF (e) The Legislature may enact a statute that modifies the percentage shall be deposited in the Corridor Mobility Improvement Account, which I _ balanced, consistent with the geographic split for funding described 1 ARTICLE XIX B shares set forth in subdivision(c)by a bill passed in each house of the is hereby created in the fund.Funds in the account shall be available to Legislature by rollcall vote entered in the journal, two-thirds of the the California Transportation Commission, upon appropriation in the in Section 188 of the Streets and Highways Code; (ii)provides mobility annual Budget Bill by the Legislature,for allocation for performance improvements in highly traveled or highly congested corridors in all 6 SECTION 1. a For the 2003-04 fiscal year and each fiscal year membership concurring,provided that the bill does not contain any other i O Y Y improvements on highly congested travel corridors in California. Funds regions of California; and(iii) targets bond proceeds in a manner that 3 thereafter,all moneys that are collected during the fiscal year from taxes unrelated provision and that the moneys described in subdivision(a)are Y g Y expended solely for the purposes set forth in paragraph(2)of subdivision(b). in the account shall be used for performance improvements on the state provides the increment of funding necessary,.when combined with other under the Sales and Use Tax Law(Part 1(commencing with Section 6001) highway system, or major access routes to the stale highway system on state, local or federal funds, to provide the mobility benefit in the earliest of Division 2 of the Revenue and Taxation Code), or an successor to (f)(1) An amountequivalenttothetotalamountofrevenuesthatwere Y the local road system that relieve congestion by expanding capacity, possible timeframe. that law,upon the sale,storage,use,or other consumption in this State of not transferred from the General Fund of the State tq the Transportation enhancing operations, or otherwise improving travel times within these motor vehicle fuel,and that are deposited in the General Fund of the State Investment Fund, as of July 1, 2007, because of a suspension of transfer high-congestion travel corridors, as identified a- the department and (9) The commission shall include in its annual report to the pursuant to that law,shall be transferred to the Transportation Investment of revenues pursuant to this'section as it read on January 1, 2006, but regional or local transportation agencies, pursuant to the process in Legislature,required by Section 14535,a summary of its activities related Fund,which is herebycreated in the State Treasury. excluding the amount to be paid to the Transportation Deferred Investment to the administration of this program.The summary should,at a minimum, Y paragraph(3)or(4),as applicable. b 1 For the 2003-04 to 2007-08 fiscal ears,inclusive,moneys in Fund pursuant to Section 63048.65 of the Government Code, shall be include a description and the location of the projects contained in the O O Y Y (2) The commission shall develop and adopt guidelines,by December , transferred from the General Fund to the Transportation Investment Fund program,the amount of funds allocated to each project,the status of each the Transportation Investment Fund shall be allocated,upon appropriation 1,2006,including regional programming targets,for the program funded no later than June 3Q 2016. Until this total amount has been transferred, project, and a description of the mobility improvements the program is I by the Legislature, in accordance with Section 7104 of the Revenue and � b this subdivision, and shall allocate funds from the account toprojects the amount of transfer payments to be made in each fiscal year shall not y f f achieving. Taxation Code as that section read on after reviewing project nominations submitted by the Department of March 6,2002. be less than one-tenth of the total amount required o be transferred by b One billion dollars $1,000,000,000 shall be made available, June 30, 2016. The transferred revenues shall be allocated solely for the Transportation and by regional transportation planning agencies or county O ( ) (2) For the 2008-09 fiscal year and each fiscal year thereafter, transportation commissions or authorities pursuant to paragraph(4). upon appropriation in the annual Budget Bill by the Legislature, to Purposes setforth in this section as if they had been received in the absence moneys in the Transportation Investment Fund shall be allocated solely for of a suspension of transfer of revenues. (3) Subject to the guidelines adopted pursuant to paragraph(2),the the department for improvements to State Route 99. Funds may be the following purposes: (2) The Legislature may provide by statute for the issuance of department shall nominate, by no later than January 15, 2007,projects used for safety, operational enhancements, rehabilitation, or capacity (A) Public transit and mass transportation. for the allocation of funds from the account on a statewide basis. The improvements necessary to improve the State Route 99 corridor traversing bonds by the state or local agencies, as applicable, that are secured by (B) Transportation capital improvement projects, subject to the the minimum transferpayments required by paragraph(1).Proceedsfrom department's nominations shall be geographically balanced and shall approximately 400 miles of the central valley of this state. laws governing the State Transportation Improvement Program, or any the sale of those bonds shall be allocated solely for the purposes set forth reflect the department's assessment ofa program that best meets the policy (c) Three billion one hundred million dollars ($3,100,000,000) successor to that program. in this section as if they were revenues subject to allocation pursuant to objectives described in paragraph(1). shall be deposited in the California Ports Infrastructure, Security, and (C) Street and highway maintenance,rehabilitation,reconstruction, paragraph(2)ofsubdivision(b). (4) Subject to the guidelines adopted pursuant to paragraph (2), Air Quality Improvement Account, which is hereby created in the fund. or storm damage repair conducted by cities,including a city and county. a regional transportation planning agency or county transportation The money in the account shall be available, upon appropriation by the (D) Street and highway maintenance, rehabilitation, reconstruction, subject PROPOSITION 1B commission or authority responsible for preparing a regional Legislature and sub ect to such conditions and criteria as the Legislature _ Leg� or storm damage repair conducted by counties,including a city and county_. transportation improvement plan under Section 14527 may nominate may provide by statute,as follows: O Y Y This law proposed b Senate Bill 1266 of the 2005-2006 Regular Projects.identified pursuant to paragraph (1) that best meet the policy O O ( ) f c For the 2008-09 fiscal year and each fiscal year thereafter, p p g 1 A Two billion dollars $2,000,000,000 shall be transferred Transportation Investment Fund sha Trans in the moneys ll be allocated, upon Session (Chapter 25, Statutes of 2006) is submitted to the people objectives described in thatparagraphforfundingfromthe account.Projects Y p p nominated pursuant, thisparagraph shall be submitted to the commission to the Trade Corridors Improvement Fund, which is hereby created. The a ro riation b the Legislature,as follows: in accordance with the provisions of Article XVI of the California p PP p Y g for consideration for funding by no later than January 15,2007. money In this fund shall be available, upon appropriation in the annual Constitution. ' (A) Twenty'percent of the moneys for the.purposes set forth in Budget Bill by the Legislature and subject to such conditions and criteria subparagraph A ofparagraph 2 of subdivision b . This proposed law adds sections to the Government Code;therefore, (5) All nominations to the California Transportation Commission O O O new provisions proposed to be added are printed in italic type to indicate shall be accompanied by documentation regarding the quantitative and as the Legislature may provide by statute,for allocation by the California (B) Forty percent of the moneys for the purposes set forth in qualitative measures validating each project's consistency with the policy Transportation Commission for infrastructure improvements along subparagraph B of ara rah 2 of subdivision b . that they are new. federally designated "Trade Corridors of National Significance"in,this ( ) paragraph P O O objectives described in paragraph (1). All projects nominated to the (C) Twenty percent of the moneys for the'purposes set forth in PROPOSED LAW commission for funds from this account shall be included in a regional state or along other corridors within this state that have a high volume subparagraph(C)of paragraph(2)of subdivision(b). transportation plan. of freight movement, as determined by the commission. In determining (D) Twenty percent of the moneys for the parpose purposes set forth SECTION 1. Chapter 12.49(commencing with Section 8879.20)is (6) After review of the project nominations, and supporting. projects eligible for funding, the commission shall consult the trade in subparagraph(D)of paragraph(2)of subdivision(b). added to Division 1 of Title 2 of the Government Code,to read: documentation, the commission, by no later than March 1, 2007, shall infrastructure and goods movement plan submitted to the commission (d) The (1) Except as otherwise provided by paragraph (2), the adopt an initial program of projects to be funded from the account. This by the Secretary of Business, Transportation and Housing and the transfer ofrevenues from the General Fund ofthe State to the Transportation CHAPTER 12.49. THE HIGHWAY SAFETY, TRAFFIC REDUCTION, program may be updated every two years in conjunction with the biennial Secretary for Environmental Protection. No moneys shall be allocated Investment Fund pursuant to subdivision(a)may be suspended,in whole AIR QUALITY, AND PORT SECURITY BOND ACT OF 2006 process for adoption of the state transportation improvement program from this fund until the report is submitted to the commission for its or in part,for a fiscal year if both all of the following conditions are met: pursuant to guidelines adopted by the commission. The inclusion of a consideration,provided the report is submitted no later than January 1, (1) (A) The Governor has issiica issues a proclamation that declares Article 1. General Provisions project in the program shall be based on a demonstration that the project 2007. The commission shalt also consult trade infrastructure and goods that,due to a severe state fiscal hardship,the suspension of the transfer of meets all of the following criteria:•, movement plans adopted by regional transportation planning agencies, revenues required b subdivision a 8879.20. .(a) This chapter shall be known as the Highway'Safety, adopted regional transportation plans required b •state and ederal law, �o q y O (A) Is ahigh-priority project in the corridor as demonstrated by p g p q by'state Traffic Reduction,Air Quality,and Port Security Bond Act of 2006. either of the following: (i) its inclusion.in the list of nominated projects and the statewide port master plan prepared by the California Marine the Genet a!Fund of the State is necessary. (b) This chapter shall only become operative upon adoption by the by both the department pursuant to paragraph (3) and the regional and Intermodal Transportation System Advisory Council(Cal-MITSAC) voters at the November 7,2006,statewide general election. pursuant to Section 1760 o the Harbors and Navigation Code, when • (�j (B) The Legislature enacts by statute,pursuant to a bill passed transportation planning agency or county transportation commission or P /� g in each house of the Legislature b rollcall vote entered in the journal,two- 8879.22. As used in this chapter, the following terms have the authority,pursuant to paragraph 4; or ii t needed to fully and the determining eligible ro ects or undin Eligible projects.for these funds g Y J Y P P g P O O f f Yf g g P >' f f g• g P > f f thirds of the membership concurring,a suspension for that fiscal year of following meanings: project,the identification and commitment of supplemental funding to the include,but are not limited to,all of the following: the transfer of revenues purstiant to required by subdivision(a) 'provided (a) "Board"means any department receiving an allocation of bond project from other state,local,or federal funds. (i) Highway capacity improvements and operational improvements that and the bill does not contain any other unrelated provision. proceeds pursuant to this chapter. (B) Can commence construction or implementation no later than to more efficiently accommodate the movement offreight,particularly for C No later than the effective date o the statute described in (b) "Committee" means the Highway Safety, Traffic Reduction, December 31,2012. ingress and e ress to and from the state's seaports, including navigable ( ) ff f g g f p g g subparagraph(B),a separate statute is enacted that provides for the full Air Quality, and Port Security Committee created pursuant to '(C) Improves mobility in a high-congestion corridor by improving' inland waterways used to transport freight between seaports,land ports of repayment to the Transportation Investment Fund of the toial amount of Section 8879.27. travel times or reducing the number of daily vehicle hours of delay, entry,and airports,and to relieve traffic congestion along major trade or revenue that was not transferred to thatfund as a result of the suspension, (c) "Fund"means the Highway Safety,Traffic Reduction,Air Quality, improves the connectivity of the state highway system between rural, goods movement corridors. including interest as provided by law. This full repayment shall be made and Port Security Fund of 2006 created pursuant to Section 8879.23. suburban, and urban areas, or improves the operation or safety of a (ii) Freight rail system improvements to enhance the ability to move not later than the end of the third fiscal year immediately following the highway or road segment. goods from seaports,land ports of entry,and airports to warehousing and fiscal year to which the suspension applies. Article 2. Highway Safety, Traffic Reduction,Air Quality,and Port (D) Improves access to jobs,housing,markets,and commerce. distribution centers throughout California,including projects that separate (2)(A) The transfer required bysubdivision(a)shall notbe suspended Security Fund of 2006 and Program (7) Where competing projects offer similar mobility improvements to rail lines from highway or local road traffic, improve freight rail mobility a specific corridor,the commission shall consider additional benefits when through mountainous regions, relocate rail switching yards, and other 1141 Text of Proposed Laws*** ***Text of Proposed Laws 1115 l •, TEXT OF PROPOSED LAWS * * * (PROPOSITION 1B CONTINUED) * * TEXT OF PROPOSED LAWS projects that improve the efficiency and capacity of the rail freight system. (E) Thermal protective equipment. transportation systems that can move people, goods, and emergency (2) Funds received under this subdivision shall be deposited as follows (iii) Projects to enhance the capacity and efficiency of ports. (F) Site identification instruments capable ofprovidingafingerprint personnel and equipment in the aftermath of a disaster impairing the in order to avoid the commingling of those funds with other local funds: iv Truck corridor improvements, including dedicated truck mobility ofgoods,people,and equipment. A In the case o a city, into the city account that is desi nated or for a broad inventory of chemical agents. O f Y Y g f facilities)or truck toll facilities. g (G) Other devices capable ofdetecting weapons ofmass destruction (i) One hundred twenty-five million dollars ($125,000,000) shall the receipt of state funds allocated for local streets and roads. t i i t t i i h Ousing chemical,biological,or other similar substances.ter security equipment assist any ofthefollowing: be deposited in the Local Bridge Seismic Retrofit Account, which is (B) In the case of an eligible county,into the county road fund. (v) Border access improvements that enhance goods movement hereby created in the fund. The funds in the account shall be used, upon (C) In the case of a city and county, into a local account that is between California and Mexico and that maximize the state's ability to (H) appropriation by the Legislature, to provide the 11.5 percent required designated for the receipt of state funds allocated for local streets and access coordinated border infrastructure funds made available to the (i) Screening ofincomingvessels,trucks,and incoming or outbound matchforfederal Highway Bridge Replacement andRepairfundsavailable roads. state by federal law. cargo. to the state for seismic work on local bridges, ramps,and overpasses, as (vi) Surface transportation improvements to facilitate the movement ('ii) Monitoring the physical perimeters of harbors,ports,and ferry identified by the Department of Transportation. (3) For the purpose nt allocating funds under this subdivision terminals. to cities and a city and county, the Controller shall use the.most recent 1 Two hundred t million dollars $250 000 000 shall be of goods to and from the state's airports. � (J) O fifty ( � � ) population estimates prepared by the Demographic Research Unit of the (B) The commission shall allocate funds for trade infrastructure (iii) Providing or augmenting onsite emergency response deposited in the Highway-Railroad Crossing Safety Account, which is Department of Finance.For a city that incorporated after January],1998, im rovements from the account in a manner that i addresses the state's capability. hereby created in the fund.Funds in the account shall be available, upon that does not appear on the most recent o ulation estimates prepared b ' P f O , PP P P. P P Y most urgent needs, (ii)balances the demands of various ports.(between (1) Overweight-cargo detection equipment, including, but not appropriation by the Legislature,to the Department of Transportation for the Demographic Research Unit, the Controller shall use the population 1 large and small ports, as well as between seaports, airports, and land limited to,intermodal crane scales and truck weight scales. the completion of high-priority grade separation and railroad crossing the Demographic dfor Research nit,Sec the 11005.3 Controller shall use the p pulation Ports o entr (iii)provides reasonablegeographic balance between the safety improvements. Funds in the account shall be made available for j P of entry),( �P (J) Developing disaster preparedness or emergency response Code. I state's regions, and(iv)places emphasis on projects that improve trade plans. allocation pursuant to the process established in Chapter 10(commencing � P (4) Funds apportioned to a city,county,or city and county under this corridor mobility while reducing emissions of diesel particulate and other with Section 2450)of Division 3 of the Streets and Highways Code,except j The Office of Emergency Services shall report to the Legislature on subdivision shall be used for improvements to transportation facilities that pollutant emissions.In addition, the commission shall also consider the that a dollar for dollar match of nonstate funds shall be provided for each March 1 of each year on the manner in which the funds available pursuant will assist in reducing local traffic congestion and further deterioration, following factors when allocating these funds: project,and the limitation on maximum project cost in subdivision (g)of to this paragraph were expended for thatfiscal year. improving traffic flows, or increasing traffic safety that may include, but i "Velocity, which means the speed b which large cargo would Section 2454 of the Streets and Highways Code shall not be applicable to O Y P y g g (d) Two hundred million dollars($200,OOQ000)shall be available, not be limited to,street and highwaypavement maintenance,rehabilitation, projects funded with these funds. travel from the port through the distribution system. upon appropriation by the Legislature, for schoolbus retrofit and (2) Notwithstanding the funding allocation process described in installation, construction and reconstruction of necessary associated tra (ii) "Throughput," which means the volume of cargo that would replacement to reduce air pollution and to reduce children's exposure to facilities such as drainage g and ffic control devices,or the maintenance, move from the port through the distribution system. paragraph(1),in consultation with the department and the Public Utilities rehabilitation, installation, construction and reconstruction of facilities f P g Y diesel exhaust. (iii) "Reliability," which means a reasonably consistent and Commission, the California Transportation Commission shall allocate that expand ridership on transit systems, safety projects to reduce O Y.�� Y (e) Two billion dollars ($2,000,000,000) shall be available for one hundred million dollars($100,000,000)of thefun'ds in the account to I fatalities, or as a local match to obtain state or federal transportation predictable amount of time for cargo to travel from one point to another projects in the state transportation impro Yemen tprogram,to augmentfunds high-priority railroad crossing improvements,including grade separation funds for similar purposes. on any given day or at any given time in California. otherwise availablefor this purposefrom other sources.Thefunds provided Iprojects, that are not part of the process established in Chapter 10 (iv) "Congestion reduction," which means the reduction in by this subdivision shall be deposited in the Transportation Facilities (commencing with Section 2450)of Division 3 of the Streets and Highways (5) At the conclusion of each fiscal year during which a city or county recurrent daily hours 6f delay to be achieved. Account which is hereby created in the fund,and shall be available, upon Code. The allocation of funds,under this paragraph shall be made in expends the funds it has received under this subdivision, the Controller appropriation b the Le Legislature,to the Department o Transportation,as may verify the city s or county's compliance with paragraph(4).Any city (C) The commission shall allocate funds made available by thisY % Q P f P consultation and coordination with the High-Speed Rail Authority created or count that has not complied withparagraph 4 shall reimburse the paragraph to projects that have identified and committed supplemental allocated by the California Transportation Commission in the same manner pursuant to Division 19.5(commencing with Section 185000)of the Public Y P ' () fundingfrom appropriate local,federal orprivatesources.The commission as funds allocated for those projects under existing law. Utilities Code. state for the funds it received during that fiscal year.Any funds withheld 1 1 Four billion dollars $4,000,000,000 shall be deposited . or returned as a result of a failure to comply with paragraph (4) shall shall determine the appropriate amount of supplemental funding each (f) O ( ) p (k) (1) Seven hundred fifty million dollars ($750,000,000) shall should have to be eligible or moneys from this and based on in the Public Transportation Modernization, Improvement, and Service be reallocated to the other counties and cities whose expenditures are in project g� f Y f f P P be deposited in the Highway Safety, Rehabilitation, and Preservation compliance. a project-by-project review and an assessment of the project's benefit Enhancement Account,which is hereby created in the fiord.Funds in the Account,which is hereby created in the fund.Funds in the account shall be to the state and the program. Except or border.access improvements account shall be made available, upon appropriation b the Le Legislature, Article 3. Fiscal Provisions p g p f P PY g available, upon appropriation by the Legislature, to the Department of described in clause(v)of subparagraph(A), improvements funded with to the Department of Transportation for intercity rail projects and to Transportation,as allocated by the California Transportation Commission, moneys from this fund shall have supplemental funding that is at least commuter or urban rail operators, bus operators, waterborne transit for the purposes of the state highway operation and protection program as 8879.25. Bonds in the total amount ofnineteen billion nine hundred equal to the amount of the contribution from the fund. The commission operators, and other transit operators in California for rehabilitation, described in Section 14526.5. twenty-five million dollars ($19,925,000,000), exclusive of refunding may give priority for funding to projects with higher levels of committed safety or modernization improvements, capital service enhancements or bonds, or so much thereof as is necessary, are,hereby authorized to be (2) The department shall develop a program for distribution of two issued and sold for carrying out the purposes expressed in this chapter supplemental funding. expansions,new capital projects, bus rapid transit improvements, or for hundred and fifty million dollars($250,000,000)from the funds identified (D) The commission shall include in its annual report to the rolling stockprocurement,rehabilitation,or replacement. in paragraph 1 to and traffic light synchronization projects or other and to reimburse the General Obligation Bond Expense Revolving Fund P g P O f ffi g Y P ✓ pursuant to Section 16724.5. All bonds herein authorized which have Legislature,required by Section 145--35,a summary of its activities related (2) Of the funds made available in paragraph (1),four hundred technology-based improvements to improve safety, operations and the to the administration o this ro ram.The summary should,at a minimum, - million dollars $400,000,000 shall be available,upon appropriation b been duly sold and delivered as provided herein shall constitute valid and f P g Y ( ) PY effective capacity of local streets and roads. include a description and the location of the projects contained in the the Legislature,to the departmentfor intercity rail improvements,of which legally binding general obligations of the state,and the full faith and credit the amount o unds allocated to each ro ect,the status o each one hundred twenty-five million dollars $125,000,000 shall be used or (l) (1) Two billion dollars ($2,OOQ000,000) shall be deposited in of the state is hereby pledged for the punctual payment of both principal program, ff P f Y fi ( ) f the Local Streets.and Road Improvement, Congestion Relief, and Traffic and interest thereof project, and a description of the mobility and air quality improvements the procurement of additional intercity railcars and locomotives. Safety Account of 2006,which is hereby created in the fund.The proceeds 8899.26. The bonds authorized by this chapter shall be prepared, the program is achieving. (3) Of the funds remaining after the allocations in paragraph (2), ofbonds deposited into that account shall be available,upon appropriation 2 One billion dollars $1,OOQ000,000 shall be made available, 50 percent shall be distributed to the Controller, or allocation to eligible executed,issued,sold,paid,and redeemed as provided in the State General O ( ) P f g by the Legislature,for the purposes specified in this subdivision to the Obligation Bond Law(Chapter 4(commencing with Section 16720)ofPart upon appropriation by the Legislature and subject to such conditions and agencies using,the formula in Section 99314 of the Public Utilities Code, Controller for administration and allocation in the fiscal year in which the criteria contained in a statute enacted b the Legislature,to the State Air and 50 percent shall be distributed to the Controller, or allocation to 3 b Division 4),except subdivision(a) dSection l ofth to the extent that Y g P f bonds are issued and sold,including any interest or other return earned on subdivision is inconsistent with this chapter,and all of the other provisions Resources Board for emission reductions,not otherwise required by law eligible agencies using the formula in Section 99313 of the Public Utilities the investment of those moneys,in the following manner. or regulation,front activities related to thee movement of freight along Code, subject to the provisions governing funds allocated under those of and are amended from time to time apply to the bonds and to this California's trade corridors. Funds made available'by this paragraph sections. (A) Fifty percent to the counties, including a city and county, in chappterier and hereby incorporated in this chapter as though set forth in ' are intended to supplement existing funds used to finance strategies and (g) ( ) P accordance with thefollowingformulas: full in this chapter. One billion dollars $1,000,000,000 shall be deposited in the i Sevent ve ercento the unds a able under this subparagraph public benefit projects that reduce emissions and improve air quality in State-Local Partnership Program Account,which is hereby created in the O on P e f P y 8ursua. (a) Solely for the purpose atauthorizing the issuance and trade corridors commencingat the state's airports, seaports, and land shall he apportioned among the counties in the proportion that the number sale,pursuant to the State General Obligation Bond Law, of the bonds P P fund. The funds shall be available,upon appropriation at the Legislature o ee- aid and exempt vehicles that are registered in the count bears to f P P g Y authorized b this chapter, the Highway Safety, Tra c Reduction, Air ports of entry. and subject to such conditions and criteria as the Legislature may provide f Y P e YTraffic the number of fee-paid and exempt vehicles registered in the state. Quality,and Port Security Committee is hereby created.For the purposes (3) One hundred million dollars($100,000,000)shall be available, by statute,for allocation by the California Transportation Commission N upon appropriation by the Legislature, to the Office of Emergency over afive yearperiodtoeligibletransportationprojectsnominatedbyan (ii) Twenty five percentofthefundspayableunderthissubparagraph of this chapter, the Highway Safety, Traffic Reduction, Air Quality, and o shall be apportioned among the counties in the proportion that the number Port Security Committee is"the committee' as that term is used in the State Services to be allocated, as grants,for port, harbor, and ferry terminal applicant transportation agency.A dollar for dollar match of local funds security improvements. Eligible applicants shall be publicly owned. shall be required for an applicant transportation agency to receive state of miles of maintained county roads in each'county bears to the total General Obligation Bond Law.•The committee consists of the Treasurer, ports, harbors, and ferryboat and ferry terminal operators, which may funds under this program. number of miles of maintained county roads in the state.For the purposes the Controller,the Director of Finance,and the Secretary of the Business, of apportioning funds under this clause,any roads within the boundaries Transportation and Housing Agency, or a designated representative of submit applications for projects that include, but are not limited to, the (h) One billion dollars ($1,000,000,000)shall be deposited in the Of a city and county that are not state highways shall be deemed to be each of those officials. The Treasurer shall serve as the chairperson of the following: Transit System Safety,Security,and Disaster Response Account,which is county roads. committee.A majority of the committee mUv act for the committee. (A) Video surveillance equipment. hereby created in the fund.Funds in the account shall be made available, B Explosives detection technology, g, upon appropriation b the Le Legislature and subject to such conditions and (B) Fifty percent to the -cities, including a city and county, (b) The committee may adopt guidelines establishing requirements O p gy,including,but not limited to, PY g X-ray devices. criteria as the Legislature may provide by statute,for capital projects apportioned among the cities in the proportion that the total population of for administration of its financing programs to the extent necessary to that provide increased protection against a security and safety threat, the city bears to the total population of all the cities in the state,provided, protect the validity of, and tax exemption for, interest on the bonds. The (C) Cargo scanners. and for capital expenditures to increase the capacity of transit operators, however, that the Controller shall allocate a minimum of four hundred guidelines shall not constitute rules, regulations,orders, or standards of (D) Radiation monitors. including waterborne transit operators, to develop disaster response thousand dollars($400,000)to each city,pursuant to this subparagraph. general application. 116 1 Text of Proposed Laws*** ** Text of Proposed Laws 1 117 'i TEXT OF PROPOSED LAWS * * * (PROPOSITION 1C CONTINUED) * * * TEXT OF PROPOSED LAWS r ij (c) For the purposes of the State General Obligation Bond Law,any (commencing with Section 50675) of Part 2, to be used for supportive limitations contained in this section shall not apply to the appropriation department receiving an allocation pursuant to this chapter is designated housing for individuals and households moving from emergency shelters in that budget item. to be the "board." or transitional housing or those at risk of homelessness. The Department (2) The Legislature may,from time to time, amend the provisions 8879.28. Upon request of the board stating that funds are needed PROPOSITION 1C of Housing and Community Development shall provide for higher per-unit of law related to programs to which funds are, or have been, allocated loan limits as reasonably necessary to achieve housing costs affordable pursuant to this subdivision for the purpose of improving the efficiency for purposes of this chapter, the committee shall determine whether or This law proposed by Senate Bill 1689 of the 2005-2006 Regular j to those individuals and households.For purposes of this subparagraph, and e not it is necessary or desirable to issue bonds authorized pursuant to this Session (Chapter 27, Statutes of 2006) is submitted to the people effectiveness of the program,or for the purpose offurthering the goals � "supportive housing"means housing with no limit on length of stay,that is of the program. chapter in order to carry out the actions specified in Section 8879.23,and,' in accordance with the provisions of Article XVI of the California occupied by the target population,as defined in subdivision(d)ofSection ifso,the amount of bonds to be issued and sold.Successive issues of bonds Constitution. (3) The Bureau of State Audits shall conduct periodic audits to may be authorized and sold to carry out those actions progressively,and This proposed law adds sections to the Health and Safety Code; 53260,and that is linked to onsite or offsite services that assist the tenant ensure that bond proceeds are awarded in a timely fashion and in a manner q Y Ysubjecttherefore,new provisions proposed to be added are printed in italic type to to retain the housing,improve his or her health status,maximize his or her are noire aired to be sold at one time.Bonds nia bear interest consistent with the requirements of this subdivision,and that awardees of ability to live,and,when possible,work in rite community. The criteria for to federal income tax. indicate that they are new. bond proceeds are using funds in compliance with applicable provisions of 8879.29. There shall be collected annually,in the same manner and selecting projects shall give priority to: this subdivision. The first audit shall be conducted no later than one year at the same time as other state revenue is collected, a sum of money in PROPOSED LAW (i) Supportive housing for people with disabilities who would from voter approval of this part. otherwise be at high risk of homelessness where the applications 4 In its annual re or.-t to the Legislature, the Department o addition to the ordinary revenues of the state,sufficient to pay the principal O P g ' P f represent collaboration with programs that meet the needs of the person's Housing and Community Development shall report how funds that were of and interest on,the bonds as provided herein,and all officers required SEC. 2. Part 12 (commencing with Section,53540) is added to g Y P P f disabilities. made�available pursuant to this subdivision and allocated'in the rior ear by law to perform any duty in regard to the collections of state revenues Division 31 of the Health and Safety Code,to read: P P Y shall collect that additional sum. (ii) Projects that demonstrate funding commitments from local were expended. The department shall make the report available to the 8879.30. Notwithstanding Section 13340, there is hereby PART12. HOUSING AND EMERGENCY SHELTER governments for bperating subsidies or services funding, or both,for five public on its Internet Web site. PP P f Treasury for P P TRUST FUND ACT OF 2006 years or longer. b Eight hundred tv million dollars $850,000,000 shall a ro riated rom the General Fund in the State Ti•easur , or the purpose oses � i O g fifty ( ) of this chapter,an amount that will equal the total of the following.• _ (C) One hundred thirty-five million dollars($135,000,000)shall be be deposited in the Regional Planning, Housing, and Infill Incentive (a) The sum annually necessary to pay the principal of and interest CHAPTER ]. GENERAL PROVISIONS transferred to the fund created by subdivision(b)of Section 50517.5 to be Account, which is hereby created in the fund.Funds in the account shall on, bonds issued and sold pursuant to this chapter; as the principal and expended for.the programs authorized by Chapter 3.2(commencing with be available,upon appropriation by the Legislature, and subject to such interest become due and payable. 53540. (a) This part shall be known as the Housing and Emergency Section 50517.5)of Part 2. other conditions and criteria as the Legislature may provide in statute,for (b) The sum which is necessary to carry out Section 8879.32, Shelter Trust Fund Act of 2006. (D) Three hundred million dollars ($300,000,000) shall be the following purposes: b This art shall only become operative upon adoption b the transferred to the Self-Help Housing Fund created by Section 506971. (1) For infill incentive grants for capital outlay related to infill appropriated without regard to fiscal years. O p y p p p } voters at the November 7,2006,statewide general election. These funds shall be available to the Department of Housing and housing development and other related infill development, including, but 8879.31. The board may request the Pooled Money Investment g CommunityDevelopment, to be expended or the purposes o enabling Board to make a loan from the Pooled Money Investment Account, in 53541. As used in this part, the following terms have the following P p f P p f g not limited to all of the following. accordance with Section 16312,for purposes of this chapter. The amount meanings: households to become or remain homeowners pursuant to the CalHome (A) No more than two hundred million dollars ($200,000,000) Program authorized by Chapter 6 (commencing with Section 50650) for park creation, development, or rehabilitation to encourage infill of'the request shall not exceed the amount of the unsold bonds which (a) "Board" means the Department of Housing and Community of Part 2, except ten million dollars ($IQ000,000) shall'be expended the committee has, by resolution, authorized to be sold for the purpose Development for programs administered by the department, and the development. for construction management under the California Self-Help Housing B u infrastructure costs associated of this chapter, less any amount withdrawn pursuant to Section 8879.32. California Housing Finance Agency for programs administered by the Program pursuant to subdivision(b)of Section 50696. O Water, sewer, or other public inf The board shall execute any documents as required by the Pooled Money agency. with infill development. (E) Two hundred million dollars($200,000,000)shall be transferred Investment Board to obtain and repay the loan.Any amount loaned shall ' (b) "Committee" means the Housing Finance Committee created (C) Transportation improvements related to infill development be de osited in the and to be allocated in accordance with this chapter. if b tavailabl etothe CaliforniaHousing Housing Finance Agency, to efux expended P f P pursuant to Section 53524 and continued in existence pursuant to Section be available to the Cornia Housing Finance Agency, to be expended projects. 8879.32. For the purpose of'carrying out this chapter,the Director of 53548. . I for the purposes of the California Homebuyer's Downpayment Assistance (D) Traffic mitigation. Finance may,by executive order,authorize the withdrawal from the General (c) "Fund"means the Housing and Emergency Shelter Trust Fund Program authorized by Chapter 11 (commencing with Section 51500)of (2) For brows field cleanup that promotes infill housing development Fund ofany amo unror amo tints not to exceed the amount ofthe unsold bonds createdpursuant to Section 53545. Part 3. Up to one hundred million dollars($100,000,000)ofthese funds and other related infill development consistent with regional and local which the committee has,by resolution,authorized to be sold for the purpose may be expended pursuant to subdivision(b)of Section 51504. plans. s of carrying out this chapter.Any amounts withdrawn shall deposited in the Highway Safety, Traffic Reduction,Air Quality,and Port S Security Fund CHAPTER2. HOUSING AND may SHELTER (F) One hundred million dollars($lOQ 000,000)shall be transferred (c) Three hundred million dollars ($300,006,D00) to be deposited' , of 2006.Any money made available under this section shall be returned to TRUST FUND OF 2006 AND PROGRAM to the Affordable Housing Innovation Fund, which is hereby created in in the Transit-Oriented Development Account,which Is hereby created in the State Treasury, to be administered by the Department of Housing the fund,for transfer to the Transit-Oriented Development Implementation the General Fund,plus the interest that the amounts would have earned in 53545. The Housing and Emergency Shelter Trust Fund of 2006 the Pooled Moue Investment Account, rom move received,rom the sale o and Community Development. Funds shall be expended for competitive Fund,for expenditure,upon appropriation by the Legislature,pursuant to Y fi Y f f is hereby created in the State Treasury. The Legislature intends that the grants or loans to sponsoring entities that develop, own, lend, or invest the Transit-Oriented Development Implementation Program authorized by bonds which would otherwise be deposited in that fund. proceeds of bonds deposited in the fund shall be used to fund the housing- in affordable housing and used to create pilot programs to demonstrate Part 13(commencing with Section 50560). 8879.33. The bonds may be refunded in accordance with Article 6 related programs described in this chapter over the course of the next innovative, cost-saving approaches to creating or preserving affordable (d) Two hundred million dollars($200,000,000)shall be deposited (commencing with Section 16780)ofthe State General Obligation Bond Law. decade. The proceeds of bonds issued and sold pursuant to this part for housing. Specific criteria establishing eligibility for and use of the funds in the Housing Urban-Suburban-and-Rural Parks Account, which is Approval by the electors ofthis act shall constitute approval of arty refunding the purposes specified in this chapter shall be allocated in the following shall be established in statute as approved by a 213 vote of each house of hereby created in the fund. Funds in the account shall be available upon bonds issued pursuant to the State General Obligation Bond Law. manner: the Legislature.An unds not encumbered or the purposes set forth in this g Yf f P P f appropriation by the Legislature for housing-related parks grunts in 8879.34. Notwithstanding any provisions in the State General (a) (1) One billion five hundred million dollars($1,500,000,000)to subparagraph within 30 months ofavailability shall revert to the Self-Help urban, suburban,'and rural areas, subject to the conditions and criteria Obligation Bond Law, the maximum maturity cf any bonds authorized by be deposited in the Affordable Housing Account,,which is hereby created Housing Fund created by,Section•506971 and shall be available for the that the Legislature may provide in statute. this chaptershall not exceed 30yearsfrom the date of each respective series. in the fund. Notwithstanding Section 13340 of the Government Code, the purposes described in subparagraph(D). The maturity of each series shall be calculatedfrom the date-ofeach series. money in the account shall be continuously appropriated in accordance . (G) One hundred twenty-five million dollars ($125,000,000) shall- CHAPTER 3. FISCAL PROVISIONS 8879.35. The Legislature hereby finds and declares that, inasmuch with the following schedule: be transferred to the Building Equity and Growth in Neighborhoods as the proceeds from the sale of bonds authorized by this chapter are not (A) (i) Three hundred forty-five million dollars($345,000,000)shall Fund to be used for'the Building Equity and Growth in Neighborhoods 53546. .Bonds in the total amount of two billion eight hundred fifty `proceeds of taxes"as that term is used in Article XIII B of the California be transferred to the Housing Rehabilitation Loan Fund to be expended for (BEGIN)Program pursuant to Chapter 14.5 (commencing with Section million dollars($2,850,000,000),exclusive of refunding bonds,or so much Constitution, the disbursement of these proceeds is not subject to the the Multifamily Housing Program authorized by Chapter 6.7(commencing 50860)of Part 1.Any funds not encumbered for the purposes sea forth in thereof as is necessary, are hereby authorized to be issued and sold for limitations imposed by that article. with Section 50675)of Part 2. The priorities specified in Section 50675.13 this subparagraph within 30 months of availability shall revertfor general carrying out the purposes expressed in this part and to reimburse the 8879.3.6. Notwithstanding any provision of the State General shall apply to the expenditure offrmds pursuant to this clause. use in the CalHome Program. General Obligation Bond Expense Revolving Fund pursuant to Section Obligation Bond Law with regard to the proceeds from the sale of bonds (ii) Fifty million dollars ($50,000,000)shall be transferred to the (H) Fifty million dollars ($50,000,000)shall be transferred to the 16724.5 of the Government Code.All bonds herein authorized which have authorized by this chapter that are subject to investment under Article 4 Housing Rehabilitation Loan Fund to be expended under the Multifamily Emergency Housing and Assistance Fund to be distributed in the form of been duly sold and delivered as provided herein shall constitute valid and (commencingwith Section 16470 o Chapter 3 o Part 2 o Division 4, Housin "Pro ram authorized b Chapter 6.7(commencingwith Section capital development rants under the Emergency Housingand Assistance legally binding general obligations of the state,and the full faith and credit ) f P f f g g y p P P g g y the Treasurer may maintain a separate account for investment earnings, 50675) of Part 2 for housing meeting the definitions in paragraphs (2) Program authorized by Chapter 11.5(commencing with Section 50800)of of the state is hereby pledged for the punctual payment of both principal and interest thereof. order the payment of those earnings to comply with any rebate requirement and (3) of subdivision (e) of Section 11139.3 of the Government Code. Part 2 of Division 31. The funds shall be administered by the Department applicable under federal law, and may otherwise direct the use and The department may provide higher per-unit loan limits as necessary to of Housing and Community Development in a manner consistent with the 53547. The bonds authorized by this part shall be prepared, investment of those proceeds so as to maintain the tax-exempt status of achieve affordable housing costs to the target population.Any funds not restrictions and authorizations contained in Provision 3 ofltem 2240-105- executed,issued,sold,paid,and redeemed as provided in the State General those bonds and to obtain any other advantage under federal law on behalf encumbered for the purposes of this clause within 30 months of availability 0001 of the Budget Act of 2000, except that any appropriations in that Obligation Bond Law(Chapter 4(commencing with Section 16720)ofPart of the funds of this state. shall revert for general use in the Multifamily Housing Program. , item shall not apply. The competitive system used by the department shall 3 of Division 4),except subdivision(a)of Section 16727 to the extent that 8879.37. All money derived from premium and accrued interest on (B) One hundred ninety-five million dollars ($195,000,000) shall incorporate priorities set by the designated local boards and their input as it is inconsistent with this part,and all of the other provisions of that law bonds sold pursuant to this chapter shall be transferred to the General be transferred to the Housing Rehabilitation Loan Fund to be expended to the-relative merits of submitted applications from within the designated as amended from time to time apply to the bonds and to this part and are Fund as a credit to expenditures for bond interest. for the Multifamily Housing Program authorized by Chapter 6.7 local board's county in relation to those priorities.In addition,the funding hereby incorporated in this part as though set forth in full in this part. 53548. (a) Solely.for the purpose of authorizing the issuance and j. Text of Proposed Laws 1119 1181 Text of Proposed Laws*** * i TEXT OF PROPOSED LAWS (PROPOSITION 1D CONTINUED) TEXT OF PROPOSED LAWS i sale,pursuant to the State General Obligation Bond Law, of the bonds 53557. Notwithstanding any provision of the State General f g. g P f P p P g p O (8), f authorized by this part,the Housing Finance Committee created pursuant Obligation Bond Law with regard to the proceeds from the sale of bonds any act o the Le islature, together with interest provided for in that act, to be ez ended ursu6nt to ara ra hs 1 toinclusive,o subdivision to Section 53524 is continued in existence. For the purposes of this part, authorized by this part that are subject to investment under Article 4 and to reimburse the General Obligation Bond Expense Revolving Fund (a), but may not increase or decrease the total amount to be expended the Housing Finance Committee is "the committee"as that term is used in (commencing with Section 16470)of Chapter 3 of Part 2 of Division 4 of pursuant to Section 16724.5 of the Government Code. pursuant to that subdivision. the State General Obligation Bond Law. Title 2-of the Government Code, the Treasurer may maintain a separate 101012. (a) The proceeds from`the sale of bonds,issued and sold (e) Funds available pursuant to this section may be used for (b) The committee may adopt guidelines establishing requirements account for investment earnings, order the payment of those earnings to for the purposes of this chapter,shall be allocated in accordance with the acquisition of school facilities authorized pursuant to Section 17280.5. for administration of its financing programs to the extent necessary to comply with any rebate requirement applicable underfederal law,and may following schedule: protect the validity of, and tax exemption for, interest on the bonds. The otherwise direct the use and investment of those proceeds so as to maintain (1) The amount of one billion nine hundred million dollars Article 2. Kindergarten Through 12th Grade School guidelines shall not constitute rules, regulations, orders, or standards of the tax-exempt status of those bonds and to obtain any other advantake ($1,900,000,000)for new construction of school facilities of applicant Facilities Fiscal Provisions general application and are not subject to Chapter 3.5(commencing with under federal law on behalf of the funds of this state. school districts under Chapter 12.5(commencing with Section 17070.10) Section 11340)of Part I of Division 3 ofTitle 2 of the Government Code. 53558. All money derived from premium and accrued interest on of Part 10. Of the amount allocated under this paragraph, up to 10.5 101020. (a) Of the total amount of bonds authorized to be issued (c) For the purposes of the State General Obligation Bond Law,the bonds sold pursuant to this chapter shall be transferred to the General percent shall be available for purposes of seismic repair,reconstruction, and sold pursuant to Chapter I(commencing with Section 101000),bonds Department of Housing and Community Development is designated the Fund as a credit to expenditures for bond interest. or replacement,pursuant to Section 17075.10. in the amount of seven billion three hundred twenty-nine million dollars "board"for programs administered by the department and the California (2) The amount offive hundred million dollars($500,000,000)shall ($7,329,000,000)not including the amount of any refunding bonds issued Housing Finance Agency is the "board".for programs administered by 7� �7 q be available for providing school facilities to charter schools pursuant in accordance with Section 101030, or so much thereof as is necessary, the agency. PROPOSITION 1D � to Article 12 (commencing with Section 17078.52) of Chapter 12.5 of may be issued and sold to provide a fund to be used for carrying out � This law proposed b Assembly Bill 127 of the 2005-2006 Regular Part 10. the purposes expressed in this chapter and to reimburse the General 53549. Upon request of the board stating that funds are needed.for p p y y g Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of purposes of this part, the committee shall determine whether or not it is Session (Chapter 35, Statutes of 2006) is submitted to the people (3) The amount of three billion three hundred million dollars the Government Code. The bonds, when sold, shall be and constitute a necessary or desirable to issue bonds authorized pursuant to this part in in accordance with the provisions of Article XVT of the California ($3,300,000,000)for the modernization of school facilities pursuant to y specified f Constitution. Chapter 12.5(commencing with Section 17070.10 o Part 10. valid and binding obligation li the State of California, and the full faith order to carry out the actions s eci ed in Section 53545, and, i so, the P ( � ) f and credit of the State of California is he pledged for the punctual amount of bonds to be issued and sold.Successive issues of bonds may be This proposed law adds sections to the,Education Code;therefore, (4) The amount of five hundred million dollars ($500,000,000)for payment of the principal of,and interest on,the bonds as the principal and authorized and sold to carry out those actions progressively,and are not new provisions,proposed to be added are printed in italic type to indicate the purposes set forth in Article 13(commencing with Section 17078.70)of interest become due and payable. required to be sold at any one time. Bonds may bear interest subject to that they are new. Chapter 12.5 ofPart 10,relating to facilities for career technical education federal income tax. programs. (b) Pursuant to this section, the Treasurer shall sell the bonds 53550. There shall be collected annually, in the same manner and PROPOSED LAW - 5 O the amounts allocated underparagraphs 1 and 3, u to authorized by the State School Building Finance Committee established O O P service � O f pursuant to Section 15909 at any different times necessary to se at the same time as other state revenue is collected, a sum of money in two hundred million dollars($200,000,000)for the purposes set forth in expenditures required by the apportionments. addition to the ordinaryrevenues c the state,sufficient to pay the rinci al SEC.16. Part 69(commencing with Section 101000)is added to the Chapter 894 o the Statutes b 2004,relating to incentives or the creation f ffi P y P p P f f g f 101021. The State School Building Finance Committee,established of,and interest on,the bonds as provided herein,and all officers required Education Code,to read: ofsmaller learning communities and small high schools. b law.to perform an dirt in regard to the collections o state revenues by Section he D and composed e,the Governor, the Controller, the Y P f Y Y g f (6) The amount of twenty-nine million dollars($29,OOQ000)for the _ Treasurer, the Director of Finance, and the Superintendent, or their shall collect that additional sum. PART 69. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION purposes set forth in Article 10.6(commencing with Section 17077.40)of designated representatives, all of whom shall serve thereon without 53551. Notwithstanding Section 13340 of the Government Code, FACILITIES BOND ACT OF 2006 Chapter 12.5 of Part 10,relating to joint use projects. compensation, and a majority of whom shall'constitute a quorum, is there is hereby appropriated from the General Fund in the State Treasury,- (7) The amount of one billion dollars ($1,'000,000,000) shall be continued in existence for the purpose of this chapter. The Treasurer for the purposes of this part, an amount that will equal the total of the CHAPTER 1. GENERAL available forproviding new construction funding to severely overcrowded shall serve as chairperson of the committee. Two Members of the following: schoolsites pursuant to Article 14 (commencing with Section 17079) of Senate appointed by the Senate Committee on Rules, and two Members 101000. This part shall be known and may be cited as the (a) The sum annually necessary to pay the principal of,and interest Chapter 12.5 of Part 10. of the Assembly appointed by the Speaker of the Assembly, shall meet on, bonds issued and sold pursuant to this art, as the principal and Kindergarten-University Public Education Facilities Bond Act of 2006. P P P P i (8) The amount of one hundred million dollars ($100,000,000) with and provide advice to the committee to the extent that the advisory interest become due and payable. 101001. The incorporation of, or reference to, any provision of P Y for incentive grants to promote the use of designs and materials in new participation is not incompatible with their respective positions as i California statutory law in this part includes all acts amendatory thereof (b) The sum which is necessary to carry out Section 53553, construction and modernization projects that include the attributes of Members of the Legislature.For the purposes of this chapter,the Members and supplementary thereto. appropriated without regard to fiscal years. i high-performance schools, including, but not limited to, the elements set of the Legislature shall constitute an interim investigating committee on 53552. The board map request the Pooled Money Investment Board 101002. (a) Bonds in the total amount of ten billion four hundred ( , forth in Section 17070.96,pursuant to regulations adopted by the State the subject of this chapter and, as that committee,shall have the powers to make a loan from the Pooled Money Investment Account,in accordance sixteen million dollars($10,416,000,000),not including the amount of any Allocation Board. granted to,and duties imposed upon,those committees by the Joint Rules with Section 16312 of the Government Code,for purposes of this part. The refunding bonds issued in accordance with Sections 101030, 101039,and (b). School districts may use funds allocated pursuant to paragraph of the Senate and the Assembly. The Director of Finance shall provide 101059, or so much thereof as is necessary, may be issued and sold to assistance to the committee as it may require. The Attorney General o the amount ofthe requestshall not exceed the amount ofthe unsoldbonds which (3) of subdivision (a) only for one or more of the following purposes in y q y of the committee has,by resolution,authorized to be sold for the purpose of Provide a fund to be used for carrying out the purposes expressed in this accordance with Chapter 12.5 (commencing with Section 17070.10) of state is the legal adviser of the committee. this part,less any amount withdrawn pursuant to Section 53553.The board Part and to reimburse the General Obligation Bond Expense Revolving part 10: 101022. '(a) The bonds authorized by this chapter shall be shall execute an documents as required b the Pooled Money Investment Fund pursuant to Section 16724.5 of the Government Code. The bonds, O p j g q P prepared, executed, issued, sold, aid, and redeemed as provided in the y q y y when sold, shall be and constitute a valid and binding obligation o the 1 The urchase and installation o air-conditionin e ui mentand P P P P Board to obtain and repay the loan.Any amount loaned shall be deposited g g f insulation materials,and related costs. State General Obligation Bond Law(Chapter 4(commencing with Section State of California,and the full faith and credit of the State of California is 16720 o Part 3 o Division 4 o Title 2 o the Government Code),and all in the fund to be allocated in accordance with this part. ) f f f f hereby pledged for the punctual payment of the principal of,and interest (2) Construction projects or the purchase of furniture or equipment of the provisions of that law,except Section 16727 of the Government Code 53553. For the purpose of carrying out this part, the Director designed to increase school security or playground safety. to the extent that it conflicts with this part, apply to the bonds and to this on,the bonds as the principal and interest become due and payable. g Y P Yg of Finance may, by executive order, authorize the withdrawal from the . General Fund of any amount or amounts not to exceed the amount of the b Pursuant to this section, the Treasurer shall sell the bonds 3 The identification,assessment,or abatement in school facilities O Ochapter and are hereby incorporated into this chapter as though set forth in unsold bonds which the committee has,by resolution,authorized to be sold authorized by the State School Building Finance Committee established of hazardous asbestos. full within this chapter. for the purpose of carrying out this part.Any amounts withdrawn shall be by Section 15909 or the Higher Education Facilities Finance Committee (4) Project funding for high-priority roof replacement projects. (b) Forpurposes c fthe State General Obligation Bond Law,'theState deposited in the fund.Any money made available under this section shall be established pursuant to Section 67353,as the case may be,at any different (5) Any other modernization I offacilities pursuant to Chapter 12.5 Allocation Board is designated the "board"for purposes of administering returned to the General Fund,plus the interest that the amounts would have times necessary to service expenditures required by the apportionments. (commencing with Section 17070.10)of Part 10. the 2006 State School Facilities Fund. earned in the Pooled Money Investment Account,from money received from (c) Funds allocatedpursuant to paragraph(1)ofsubdivision(a)may - 101023. (a) Upon request of the State Allocation Board, the State the sale of bonds which would otherwise be deposited in that fund. CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE also be utilized to provide new construction grantsfor eligible applicant School Building Finance Committee shall determine whether or not it is 53554. The bonds may be refunded in accordance with Article 6 Article 1. Kindergarten Through 12th Grade School county boards of education under Chapter 12.5(commencing with Section necessary or desirable to issue bonds authorized pursuant to this chapter (commencing with Section 16780)ofthe State General Obligation Bond Law. Facilities Program Provisions 17070.10) of Part 10 for funding classrooms for severely handicapped in order to fund the apportionments and, if so, the amount of bonds to be Approval by the electors ofthis act shall constitute approval ofany refunding - pupils,or for funding classrooms for county community school pupils. issued and sold.Successive issues of bonds may be authorized and sold to .bonds issued pursuant to,the State General Obligation Bond Law. 101010. The proceeds of bonds issued and sold pursuant to Article (d) (1)The Legislature may amend this section to adjust the funding fund those apportionments progressively,and it is not necessary that all of 53555. Notwithstanding any provisions in the State General 2(commencing with Section 101020)shall be deposited in the 2006 State amounts specified in paragraphs (1)to(8), inclusive, of subdivision(a), the bonds authorized to be issued be sold at any one time. Obligation Bond Law, the maximum maturity of any bonds authorized School Facilities Fund established in the State Treasury under subdivision only by either of the following methods: (b) A request of the State Allocation Board pursuant to subdivision by this part shall not exceed 30 years from the date cf each respective (d) of Section 17070.40 and shall be allocated by the State Allocation (A) By a statute,passed in each house of the Legislature by rollcall (a)shall be supported by a statement of the apportionments made and to be series. The maturity of each series shall be calculated from the date of Board pursuant to this chapter. vote entered in the respective journals, by not less than two-thirds of the made for the purposes described in Sections 101011 and 101012. each series. 1 101011. All moneys deposited in the 2006 State School Facilities membership in each house concurring,if the statute is consistent with,and 101024. There shall be collected each year and in the same manner 53556. The Legislature hereby finds and declares that, inasmuch Fund for the purposes of this chapter shall be available to provide aid furthers the purposes of,this chapter. and at the same time as other state revenue is collected, in addition to as the proceeds from the sale of bonds authorized by this part are not to school districts,county superintendents of schools,and county-boards (B) By a statute that becomes effective only when approved by the the ordinary revenues cf the state, a sum in an amount required to pay "proceeds of taxes"as that term is used in Article XIII B of the California of education of the state in accordance with the Leroy F. Greene School voters. the principal of,and interest on, the bonds each year.It is the duty of all Constitution, the disbursement of these proceeds is not subject to the Facilities Act of 1998(Chapter 12.5(commencing with Section 17070.10) (2) Amendments pursuant to this subdivision may adjust the amounts officers charged by law-with any duty in regard to the collection of the limitations imposed by that article. of Part 10), as set forth in Section 101012, to provide funds to repay any revenue to do and perform each and every act that is necessary to collect money advanced or loaned to the 2006 State School Facilities Fund under 120 1 Text of Proposed Laws*** ***Text of Proposed Laws 1 121 I TEXT OF PROPOSED LAWS * * (PROPOSITION ID CONTINUED) * * * TEXT OF PROPOSED LAWS that additional sum. liability or liabilities,of the State of California pursuant to this chapter for by the Legislature in the annual Budget Act. Pursuant to that legislative 101039. The bonds may be refunded in accordance with Article 6 101025. Notwithstanding Section 13340 of the Government Code, the purpose ofprovidingfunds to aid the California Community Colleges. direction,the committee shall determine whether or not it is necessary or (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 there is hereby appropriated from the General Fund in the State Treasury, desirable to issue bonds authorized pursuant to this chapter in order to of Title 2 of the Government Code, which is a part of the State General for the purposes of this chapter,an amount that will equal the total of the Article 2. California Community College Program Provisions carry out the purposes described in this chapter and,if so, the amount of Obligation Bond Law. Approval by the voters of the state for the issuance following: bonds to be issued and sold.Successive issues of bonds may be authorized of the•bonds described in this chapter includes the approval ofthe issuance (a) The sum annually necessary to pay the principal of,and interest 101033. (a) From the proceeds of bonds issued-and sold pursuant and sold to carry out those actions progressively;and it is not necessary of any bonds issued to refund any bonds originally issued under this on, bonds issued and sold pursuant to this chapter, as the principal and to Article 3(commencing with Section 101034),the sum of one billion five that all of the bonds authorized to be issued be sold at any one time. chapter or any previously issued refunding bonds. interest become due and payable. hundred seven million dollars($1,507,000,000)shall be deposited in the 101035.5. There shall be collected each year and in 'the same 101039.5. The Legislature herebyfinds and declares that,inasmuch (b) The sum necessary to carry out Section 101028, appropriated 2006 California Community College Capital Outlay Bond Fund for the manner and at the same time as other state revenue is collected,in addition as the proceeds from the sale of bonds authorized by this chapter are not without regard to fiscal years. purposes of this article. When appropriated,these funds shall be available to the ordinary revenues of the state,a sum in an amount required to pay `proceeds of taxes"as that term is used in Article XIII B of the California 101026. The State Allocation Board may request the Pooled Money .for expenditure for the purposes of this article. the principal of,and interest on, the bonds each year.It is the duty ofiall Constitution, the disbursement of these proceeds is not subject to the b The purposes o this article include assisting in meeting the Investment Board to make a loan from the Pooled Money Investment O P P f g g officers charged by law with any duty in regard-to the collection-of the limitations imposed by that article. Account or any other approved form of interim financing, in accordance capital outlay financing needs of the California Community Colleges. revenue to do and perform each and every act which is necessary to collect with Section 16312 of the Government Code,for the purpose of carrying (c) Proceeds from the sale of bonds issued and sold for the purposes that additional sum. CHAPTER 4. UNIVERSITY FACILITIES out this chapter. The amount of the request shall not exceed the amount of of this article may be used to fund construction on existing campuses, 101036. Notwithstanding Section 13340 of the Government Code, Article 1. General the unsold bonds that the committee, by resolution, has authorized to be including the construction of buildings and the acquisition of related there is hereby appropriated from the General Fund in the State Treasury, sold or the purpose o carrying out this chapter. The board shall execute fixtures, construction o acilities that may be used b more than one for the purposes of this chapter,an amount that will equal the total of the f P P f Y g P fi of facilities Y Y 101040. (a) The system of public universities in this state includes any documents required by the Pooled Money Investment Board to obtain segment of public higher education (in terse gmental), the renovation following: the University of California, the Hastings College of the Law, and the and repay the loan.Any amounts loaned shall be deposited in the fund to and reconstruction.of facilities, site acquisition, the equipping of new, (a) The sum annually necessary to pay the principal of,and interest California State University,and their respective off-campus centers. be allocated by the board in accordance with this chapter. renovated, or reconstructed facilities, which equipment shall have an on, bonds issued and sold pursuant to this c pter, as the principal and • � (b) The 2006 University Capital Outlay Bond. Fund is hereby 101027. Notwithstandingan other provision o this chapter, or average useful life of 10 years;and to provide funds for the payment of interest become due and payable. Y P f P established in the State Treasury for deposit of funds from the proceeds of of the State General Obligation Bond Law, if the Treasurer sells bonds preconstr•uction costs,including,but not limited to,preliminary plans and (b) The sum necessary to carry out Section 1010375,appropriated bonds issued and sold for the purposes of this chapter. pursuant to this chapter that include a bond counsel opinion to the effect working drawings for facilities of the California Community Colleges. without regard to fiscal years. that the interest on the bonds is excluded from gross income for federal 101036.5. The board, as defined in subdivision (b) of Section a The Higher Education Facilities Finance Committee established pursuant t to Section 67353 is hereby authorized to create a debt or debts, tax purposes,subject to designated conditions,the Treasurer may maintain Article 3. California Community College Fiscal Provisions 101034.5,may request the Pooled Money Investment Board to make a loan liability or liabilities, of the State of California pursuant to this chapter' separate accounts for the investment of bond proceeds and for the from the Pooled Money Investment Account or any other approved form for the purpose of providing funds to aid the University of California,the investment earnings on those proceeds. The Treasurer may use or direct 101034. -(a) Of the total amount of bonds authorized to be'issued of interim financing,in accordance with Section 16312 of the Government Hastings College of the Law,and the California State University. the use of those proceeds or earnings to pay any rebate;penalty,or other and sold pursuant to Chapter I (commencing with Section 101000), Code,for the purpose of carrying out this chapter. The amount of the payment required underfederal law or take any other action with respect to bonds in the total amount of one billion five hundred seven million dollars request shall not exceed the amount ofthe unsold bonds that the committee, the investment and use of those bond proceeds required or desirable under ($1,507,000,000),not including the amount of any refunding bonds issued by resolution,has authorized to be sold for the purpose of carrying out this Article 2. Program Provisions Applicable to the University of federal law to maintain the tax-exempt status of those bonds and to obtain in accordance with Section 101039, or so much thereof as is necessary, chapter.The board,as defined in subdivision(b)of Section 101034.5,shall California and the Hastings College of the Law any other advantage underfederal law on behalf of the funds of this state. may be issued and sold to provide a fund to be used for carrying out execute any documents required by the Pooled Money Investment Board 101028. For the purposes of carrying out this chapter,the Director the purposes expressed in this chapter and to reimburse the General to obtain and repay the loan.Any amounts loaned shall be deposited in the 101041. (a) From the proceeds of bonds issued and sold pursuant of Finance may authorize the withdrawal from the General Fund of an Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of fund to be allocated by the board in accordance with this chapter. to Article 4(commencing with Section 101050),the sum of eight hundred the Government Code. The bonds, when sold, shall be and constitute a ninety million dollars ($890,000,000) shall be deposited in the 2006 amount not to exceed the amount of the unsold bonds that have been 101037. Notwithstanding any other provision of this chapter, or University Capital Outlay Bond Fund for the purposes of this article. authorized by the State School Building Finance Committee to be sold valkd and binding obligation of the State of California, and the full faith of the State General Obligation Bond Law, if the Treasurer sells bonds for the purpose of carryink out this chapter. Any amounts withdrawn and credit of the State of California is hereby pledged for the punctual pursuant to this chapter that include a bond counsel opinion to the effect When appropriated,these funds shall be available for expenditure for the purposes of this article. shall be deposited in the 2006 State School Facilities Fund consistent Payment of the principal of,and interest on,the bonds as the principal and that the interest on the bonds is excluded from gross income for federal with this chapter.Any money made available under this section shall be interest become due and payable. tax purposes,subject to designated conditions,the Treasurer may maintain (b) The purposes of this article incl0e assisting in meeting,the returned to the General Fund,plus an amount equal to the interest that (b) It is the intent of the Legislature that the California Community separate accounts for the investment of bond proceeds and for the capital outlay financing needs of the University of California and the the money would have earned in the Pooled Money Investment Account, Colleges annually consider,as part of their annual capital outlay planning investment earnings on those proceeds. The Treasurer may use or direct Hastings College of the Law. from proceeds received from the sale of bonds for the purpose of carrying process, the inclusion of facilities that may be used by more than one the use of those proceeds or earnings to pay any rebate,penalty,or other (c) Of the amount made available under subdivision(a),the amount out this chapter. segment of public higher education (intersegmental), and, that on or payment required underfederal law or take any other action with respect to of two hundred million dollars ($200,000,000)shall be used for capital 101029' All money deposited in the 2006 State School Facilities before May 15th of each year, those entities report their findings to the the investment and use of those bond proceeds required or desirable under improvements that expand and enhance medical education programs with Fund, that is derived from premium and accrued interest on bonds sold budget committees of each house of the Legislature. federal law to maintain the tax-exempt status of those bonds and to obtain an emphasis on telemedicine aimed at developing high-tech approaches shall be reserved in the fund and.shall be available for transfer to the (c) Pursuant to this section, the Treasurer shall sell the bonds. any other advantage underfederal law on behalf of the funds of this state. to health care. General Fund as a credit to expenditures for bond interest. authorized by the Higher Education'Facilities Finance Committee 101037.5. (a) For the purposes of carrying out this chapter, the (d) Proceeds from the sale of bonds issued and sold for the purposes 101030. The bonds may be refunded in accordance with Article 6 established pursuant to Section 67353 at any different times necessary to Director of Finance may authorize the withdrawal from the General Fund of this article may be used to fund construction on existing campuses, (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 service expenditures required by the apportionments. of an amount not to exceed the amount of the unsold bonds that have been including the construction of buildings and the acquisition of related of Title 2 of the Government Code, which is a part of the State General 101034.5. (a) The bonds authorized by this chapter shall.be authorized by the Higher Education Facilities Finance Committee to be fixtures, construction of facilities that may be used by more than one Obligation Bond Law. Approval by the voters of the state for the issuance prepared, executed, issued,sold,paid, and redeemed as provided in the sold for the purpose of carrying out this chapter.Any amounts withdrawn segment of public higher education (intersegmental), the renovation of the bonds described in this chapter includes the approval ofthe issuance State General Obligation Bond Law(Chapter 4(commencing with Section shalt be deposited in the 2006 California Community College Capital and reconstruction of facilities, site acquisition, the equipping of new, of any bonds issued to refund any bonds originally issued under this 16720)of Part 3 of Division 4 of Title 2 of the Government Code),and all Y P Y Y Outlay Bond Fund consistent with this chapter.An money made available renovated, or reconstructed facilities, which equipment shall have an chapter or any previously issued refunding bonds. ofthe provisions of that law,except Section 16727 of the Government Code under this section shall be returned to the General Fund,plus an amount average useful life of 10 years;and to provide funds for the payment of 101031. The Legislature hereby finds and declares that, inasmuch to the extent that it conflicts with this part,apply to the bonds and to this equal to the interest that the money would have earned in the Pooled preconstruction costs,- including, but not limited to, preliminary plans as the proceeds from the sale of bonds authorized by this chapter are not chapter and are hereby incorporated into this chapter as though set forth Money Investment Account,from proceeds received from the sale of bonds and working drawings for facilities of the University of California and the proceeds of taxes"as that term is used in Article XIII B of the California in full within this chapter. for the purpose of carrying out this chapter. Hastings College of the Law. Constitution, the disbursement of these proceeds is not subject to the (b) For the purposes of the State General Obligation Bond Law, (b) Any request forwarded to the Legislature and the Department limitations imposed by that article. each state agency administering an appropriation of the 2006 Community of Finance for funds from this bond issue for expenditure for the purposes Article 3. Program Provisions Applicable College Capital Outlay Bond Fund•is designated as the "board"for 1 described in this chapter by the California Community Colleges shall be to the California State University CHAPTER 3. CALIFORNIA COMMUNITY COLLEGE FACILITIES projects J'unded pursuant to this chapter. accompanied by the five-year capital outlay plan that reflects the needs Article 1. General (c) The proceeds of the bonds issued and sold pursuant to this and priorities of the community college system and is prioritized on a 101042. (a) From the proceeds of bonds issued and sold pursuant chapter shall be available for the'purpose of funding aid to the California statewide basis. Requests shall include a schedule that prioritizes the to Article 4 (commencing with Section 101050), the sum of six hundred Community Colleges for the construction on existing or new campuses, seismic retrofitting needed to significantly reduce, in the judgment of the ninety million dollars ($690,000,000) shall be deposited in the 2006 101032. (a) The 2006 California Community College Capital particular college,seismic hazards in buildings identified as high priority University Capital Outlay Bond Fund or the purposes o this article. Outlay Bond Fund is hereby established in the State Treasur or deposit and their respective off-campus centers and joint use and intersegmental Y P Y f P P f Y Y Y f P by the college. When appropriated,these funds shall be available for expenditure for the of funds from the proceeds of bonds issued and sold,for the purposes of .facilities,as set forth in this chapter. this chapter. 101035. The Higher Education Facilities Finance Committee j 101038. All money deposited in the 2006 California Community purposes of this article. established pursuant to Section 67353 shall authorize the issuance of bonds College Capital Outlay Bond Fund that is derived from premium and O purposes f g g (b) The Higher Education Facilities Finance Committee established g P Y f P b The ur oses o this article include assisting in meeting the under this chapter only to the extent necessary to fund the apportionments i accrued interest on bonds sold shall be reserved in the fund and shall be capital outlay financing needs of the California State University. pursuant to Section 67353 is hereby authorized to create a debt or debts, j available for transfer to the General Fund as a credit to expenditures for c Proceeds from the sale o bonds issued and sold or the purposes for the purposes described in this chapter that are expressly authorized O f f f P p bond interest. of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related 1221 Text of Proposed Laws*** ***Text of Proposed Laws 1 123 TEXT OF PROPOSED LAWS * * * (PROPOSITION 1D CONTINUED) * * * TEXT OF PROPOSED LAWS fixtures, construction of facilities that may be used by more than one for the purposes of this chapter,an amount that will equal the total ofthe transferred to the State Allocation Board and may be apportioned by that authorized pursuant to Article 2 (commencing with Section 12648) of segment of public higher education (intersegmental), the renovation following: board for the purposes of Article 10.6(commencing with Section 17077.40) Chapter 2 of Part 6 of Division 6 of the Water Code for which the board or and reconstruction of facilities, site acquisition, the equipping of new, (a)'The sum annually necessaryto pay the principal of,and interest of Chapter 12.5 of Part 10 of the Education Code. the department has provided the assurances of nonfederal cooperation to renovated, or reconstructed facilities, which equipment shall have an on, bonds issued and sold pursuant to this chapter, as the principal and -(b)Any funds remaining after the transfer required under subdivision the United States,which shall be updated by the department and compiled average useful life of 10 years: and to provide funds for the payment of interest become due and payable. (a)that conform to the description set forth in that subdivision shall be into a single document entitled"The State Plan of Flood Control." preconstruction costs,including,but not limited to,preliminary plans and transferred to the State Allocation Board and may be apportioned by that (k) "Urban area"means any contiguous area in which more than working drawings for facilities of the California State University. (b) The sum necessary to carry out Section 101057, appropriated board for any of the purposes of Chapter 12.5(commencing with Section 10,000 residents are protected by project levees. without regard to fiscal years. 17070.10)of Part 10 of the Education Code. 101055. The board,as defined in subdivision(b)of Section 101051, Article 3. Disaster Preparedness and Flood Prevention Bond Article 4. University Fiscal Provisions may request the Pooled Money Investment Board to make a loan.from the Fund of 2006 Pooled Money Investment Account or any other approved form of interim PROPOSITION 1E 101050. (a) Ofthe total amount ofbonds authorized to be issued and finkncing, in accordance with Section 16312 of the Government Code, 1 sold pursuant to Chapter 1(commencing with Section 101006),bonds in the for the purpose of carrying out this chapter. The amount of the request This law proposed by Assembly Bill 140 of the 2005-2006 Regular 5096.806. The proceeds of bonds issued and sold pursuant to amount ofone billionfive hundred eighty million dollars($1,580,000,000), shall not exceed the amount of the unsold bonds that the committee, by Session (Chapter 33, Statutes of 2006) is submitted to the people this chapter shall be deposited in the Disaster Preparedness and Flood resolution, has authorized to be sold not including the amount of any refunding bonds issued in accordance with for the purpose of carrying out this in accordance with the provisions of Article XVI of the California Prevention Bond Fund of 2006,which is hereby created.Constitution. Section 101059,or so much thereof as is necessary,may be issued and sold chapter. The board,as defined in subdivision (b)of Section 101051,shall to provide a fund to be used for carrying out the purposes expressed in this execute any documents required by the Pooled Money Investment Board This proposed law adds sections to the Public Resources Code; Article 4. Disaster Preparedness and Flood Prevention Program' • chapter and to reimburse the General Obligation Bond Expense Revolving to obtain and repay the loan.Any amounts loaned shall be deposited in the therefore,new provisions proposed to be added are printed in italic type to Fund pursuant to Section 16724.5 of the Government Code. The bonds, fund to be allocated by the board in accordance with this chapter. indicate that they are new. 5096.820. (a) The sum of four billion ninety million dollars ($4,090,000,000) shall be available, upon appropriation therefor, for when sold, shall be and constitute a valid and binding obligation of the 101056. Notwithstanding any other provision of this chapter, or PROPOSED LAW disaster'preparedness and flood prevention projects pursuant to this State of California,and the full faith and credit of the State of California is of the State Genera if l Obligation Bond Low, the Treasurer sells bonds article. hereby pledged for the punctual payment of the principal of,and interest pursuant to this chapter that include a bond counsel opinion to the effect on,the bonds as the principal and interest become due and payable. that the interest on the bonds is excluded from gross income for federal SECTION 1. Chapter 1.699(commencing with Section 5096.800) 1n expending funds pursuant to this article, the Governor shall do all(b)b)the following: (b) It is the intent of the Legislature that the University of California tax purposes,subject to designated conditions,the Treasurer may maintain is added to Division 5 of Public Resources Code,to read: separate accounts or the investment o bond proceeds and or the (1) Secure the maximum feasible amounts of federal and local • and the California State Universityannuallyconsider,aspartoftheirannual P f f P f matching funds to and disaster preparedness and flood prevention capital outlay planning process,the inclusion offacilities that may be used investment earnings on those proceeds. The Treasurer may use or direct CHAPTER 1.699. D/SASTER PREPAREDNESS AND g f f p p fl P by more than one segment ofpublic higher education(intersegmental),and, the use of those proceeds or earnings to pay any rebate,penalty,or other. projects in order to ensure prudent and cost-effective use of these funds to that on or before May 15 of each year,those entities report theirfindings to payment required underfederal law or take any other action with respect to FLOOD PREVENTION BOND ACT OF 2006 the extent that this does not prohibit timely implementation of this article. i the budget committees of each house of the Legislature. the investment and use of those bond proceeds required or desirable under Article]. General Provisions (2) Prioritize project selection and project design to achieve (c) Pursuant to this section, the Treasurer shall sell the bonds federal law to maintain the tax-exempt status of those bonds and to obtain maximum public benefits from the use of these funds. authorized by the Higher Education Facilities Finance Committee any other advantage under federal law on behalf of the funds of this state. 5096.800. This chapter shall be known and may be cited as the (3) In connection with the submission 'of the annual Governor's established pursuant to Section 67353 at any different times necessary to 101057. (a) For the purposes of carrying out this chapter, the Disaster Preparedness and Flood Prevention Bond Act of 2006. Budget, submit an annual Bond Expenditure Disaster Preparedness and service expenditures required by the apportionments. Director of Finance may authorize the withdrawal from the General Fund Flood Prevention Plan'that describes in detail the proposed expenditures of 101051 (a) The bonds authorized by this chapter shall be prepared, of an amount not to exceed the amount of the unsold bonds that have Article 2. Definitions bondfunds,the amount offederal appropriations and local funding obtained executed,issued,sold,paid,and redeemed as provided in-the State General been authorized by the Higher Education Facilities Finance Committee to fund disaster preparedness and flood prevention projects to match those Obligation Bond Law (Chapter 4 (commencing with Section 16720) of to be sold for the purpose of carrying out this chapter. Any amounts 5096.805. Unless the context otherwise requires,the definitions set expenditures,and an investment strategy to meet long-term flood protection Bond*tl l O it C withdrawn shall be deposited in the 2006 University apauay needs and minimize state taxpayer liabilities from flooding. Part 3 of Division 4 of Title 2 of the Government Code), and all of theforth in this article govern-the construction of this chapter. provisions o that law,except Section 16727 o the Government Code to the Fund consistent with this chapter.Any money made available under this 5096.821. Three billion dollars($3,000,000,000)shall be available, p f p f (a) "Board"means the Reclamation Board or successor entity. section shall be returned to the General Fund,plus an amount equal to the upon appropriation to the de department, or the ollbwin purposes: extent that it conflicts with this part,apply to the bonds and to this chapter interest that the money would have earned in the Pooled Money Investment (b) "Committee" means the Disaster Preparedness and Flood p ) P f f �, gP p and arehereby incorporated into this chapter as though set forth in full y y Prevention Bond Finance Committee,created b Section 5096.957. (a) The evaluation, repair, rehabilitation, reconstruction, or , within this chapter. Account,from proceeds received from the sale of bonds for the purpose of y r p replacement of levees, weirs,bypasses, and facilities'of the State Plan of carrying out this chapter. (c) "Delta"means the area of the Sacramento-San Joaquin Delta as (b) For the purposes of the State General Obligation Bond Law, Flood Control by all of the following actions: (b) Any request forwarded to the Legislature and the Department defined in Section 1j220 of the Water Code. each state agency administering an appropriation of the 2006 University (1) Repairing erosion sites and removing sediment from channels or Capital Outlay Bond Fund is designated as the "board"for projects of Finance for funds from this bond issue for expenditure for the purposes (d) "Department"means the Department of Water Resources. bypasses. funded pursuant to this chapter. described in this chapter by the University of California, the Hastings (e) "Facilities of the State Plan of Flood Control"means the levees, College ofthe Law,or the California State University shall be accompanied (2) Evaluating and repairing levees and any other facilities of the g fY P weirs, channels, and other features o the federal and state authorized (c) The proceeds pf the bonds issued and sold pursuant to this f f f State Plan of Flood Control. chapter shall be available or the purpose o undin aid to the University' by the five-year capital outlay plan. Requests forwarded by a university flood control facilities located in the Sacramento and San Joaquin River P f P p ff g or college shall include a schedule that prioritizes the seismic retrofitting drainage basin for which the board or the department has given the (3) Implementing mitigation measures for a project undertaken of California, the Hastings College of the Law, and the California State University,for the construction on existing or new campuses, and their needed to significantly reduce,in the judgment of the particular university assurances of nonfederal cooperation to the United States required for the pursuant to this subdivision. The department may fund participation in a or college,seismic hazards in buildings identified as,high priority by the project,and those facilities identified in Section 8361 of the Water Code. natural community conservation plan pursuant to Chapter 10(commencing respective off-campus centers and joint use and intersegmental facilities, with Section 2800 o Division 3 o the Fish and Game Code to facilitate university or college. ) f si as set forth in this chapter. "Fund with the Disaster Preparedness and Flood Prevention f101058. All money deposited in the 2006 University Capital Outlay Bond Fund of 2006,created by Section 5096.806. projects authorized by this subdivision. 101052. The Higher Education Facilities Finance Committee Bond Fund that is•derived from premium and accrued interest on bonds (b) Improving or adding facilities to the State Plan of Flood Control established pursuant to Section 67353 shall authorize the issuance ofbonds (g) "Project levees"means the levees that are part of the facilities of to increase levels of flood prevention for urban areas,including all related under this chapter only to the extent necessary to fund the apportionments sold shall be reserved in the fund and shall be available for transfer to the the State Plan of Flood Control. - General Fund as a credit to expenditures for bond interest. costs for mitigation and infrastructure relocation.Funds made available by for the purposes described in this chapter that are expressly authorized (h) "Restoration"means the improvement of a physical structure or this subdivision may be expended for state financial participation in federal b the Legislature in the annual Budget Act. Pursuant to that legislative 101059. The bonds may be refunded in accordance with Article 6 Y g g g facility and,in the case of natural system and landscape features includes; and state authorized flood control projects,feasibility studies and design direction,the committee shall determine whether or not it is necessaryor (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 but is not limited to, a ro ect or the control o erosion, the control and p 1 f f of federal flood damage reduction and related projects, and reservoir desirable to issue bonds authorized pursuant to this chapter in order to of Title 2 of the Government Code, which is a part of the State General elimination of exotic species, including prescribed burning,fuel hazard reoperation and groundwater flood storage projects. Not more than two carry out the purposes described in this chapter and,if so,the amount of Obligation Bond Law. Approval by the voters of the state for the issuance reduction,fencing out threats to existing or restored natural resources, hundred million dollars ($200,000,000) may be expended on a single bonds to be issued and sold.Successive issues o bonds may be authorized ofthe bonds described in this chapter includes the approval ofthe issuance road elimination, and other plant and wildlife habitat improvement to f y pp project,excluding authorized flood control improvements to Folsom Dam. and sold to carryout those actionsprogressively,and it is not necessary of any bonds issued to refund any bonds originally issued under this increase the natural system value o theproperty.A restorationproject y y f c 1 To reduce the risk o levee allure in the delta. that all o the bonds authorized to be issued be sold at an one time. chapter or any previously issued refunding bonds. O O .f f f y � shall include the planning,monitoring,and reporting necessary to ensure 2 The funds made available or the purposespecified inparagraph 101053. There shall be collected each year and in the same manner 101060. The Legislature hereby finds and declares that,inasmuch successful implementation of the project objectives. O f f P P as the proceeds from the sale o bonds authorized b this chapter are not ! (1)shall be expended for both of the following purposes: and at the same time as other state revenue is collected, in addition to P f f y P (i) "State General Obligation Bond Law"means the Stqte General the ordinary revenues of the state,.a sum in an amount required to pay `Proceeds of taxes"as that term is used in Article XIII B of the California Obligation Bond Law (Chapter 4 (commencing with Section 16720) of (A) Local assistance under the delta levee maintenance subventions the principal of,and interest on, the bonds each year.It is the duty of all Constitution, the disbursement of these proceeds is not subject to the Part 3 of Division 4 of Title 2 of the Government Code). program under Part 9(commencing with Section 12980)of Division 6 of officers charged b law with an duty in regard to the collection o the limitations imposed by that article. the Water Code,as that part may be amended. ffi g y y y g f (j) "State Plan of Flood Control" means the state and federal revenue to do and perform each and every act which is necessary to collect SEC. 20. (a) Up to twenty-one million dollars ($21,000,000) (B) Special flood protection projects under Chapter 2(commencing that additional sum. of any funds that are required to be made available for rehabilitation or flood control works, lands, programs, plans, conditions, and mode of 12310 with Section Part 4.8 o the Water Code, as that maintenance and operations of the Sacramento River Flood Control )o f f Division 6 o f 101054. Notwithstanding Section 13340 of the Government Code, construction of joint-use facilities for public schools and that result or are Project described in Section 8350 of the Water Code,and of flood control chapter may be amended. there is hereby appropriated from the General Fund in*the State Treasury, derived from the,sale of bonds issued on or before January 1,2006,shall be projects in the Sacramento River and San Joaquin River watersheds 5096.824. (a) Five hundred million dollars ($500,000,000) shall 1241 Text of Proposed Laws ***Text of Proposed Laws 1 125 TEXT OF PROPOSED LAWS (PROPOSITION lE CONTINUED) * *TEXT OF PROPOSED LAWS be available, upon appropriation to the department,for payment.for the form,and shall post an electronic form ofthe list on the Resources Agency's include a bond counsel opinion to the effect that the interest on the bonds who molest children have had some type of involvement with pornography,. state's share of the nonfederal costs,and related costs,offlood control and Internet Web site. is excluded from gross income for federal tax purposes under designated Predators often use child pornography to aid in their molestation. flood prevention projects authorized under any of the following: conditions, the Treasurer may maintain separate accounts for the bond (d) The universal use of the Internet has also ushered in an era of (1) The State Water Resources Law of 1945(Chapter 1(commencing Article 17. Fiscal Provisions proceeds invested and for the investment earnings on those proceeds,and increased risk to our children by predators using this technology as a tool with Section 12570) and Chapter 2 (commencing with Section 12639)of may use or direct the use of those proceeds or earnings to pay any rebate, to lure children away from their homes and into dangerous situations. Part 6 ofDivision 6 of the Water Code). 5096.955. (a) Bonds in the total amount of four billion ninety penalty, or other payment required under federal law or take any other Therefore,to reflect society's disapproval of this type of activity,adequate (2) The Flood Control Law of 1946(Chapter 3 (commencing with million dollars ($4,090,000,000), not including the amount of any action with respect to the investment and use of those bond proceeds,as penalties must be enacted to ensure predators cannot escape prosecution. refunding bonds issued in accordance with Section 5096.966,or so much may be required.or desirable under federal law in order to maintain the Section 12800)of Part 6 of Division 6 of the Water Code). .f g (e) With these changes,Californians will be in a better position to thereo as is necessary,may be issued and sold to provide a and to be used iax-exempt status of those bonds and to obtain any other advantage under (3) The California Watershed Protection and Flood Prevention Law f Y Y P f keep themselves,their children,and their communities safe from the threat (Chapter 4(commencing with Section 12850)of Part 6 ofDivision 6 of the for carrying out the purposes expressed in this chapter and to reimburse federal law on behalf of the funds of this state. posed by sex offenders. Water Code). the General Obligation Bond Expense Revolving Fund pursuant to Section 5096.963. For the purposes, of carrying out this chapter, the (f) It is the intent of the People in enacting this measure to ) (b) The costs described in subdivision(a)include costs incurred in 16724.5 of the Government Code. The bonds, when sold, shall be and Director of Finance may authorize the withdrawal from the General Fund help Californians better protect themselves, their children, and their constitute valid and binding obligations of the State of California,and the of an amount or amounts not to exceed the amount of the unsold bonds communities; it is not the intent of the People to embarrass or harass connection with either of the following: full faith and credit o the State o California is hereb pledged or the that have been authorized b the committee to be sold or the purpose o � f f f fY P g f Y f P P f persons convicted of sex offenses. (1) The granting of credits or loans to local agencies,as applicable, punctual payment of both principal of, and interest on, the bonds as the carrying out this chapter.Any amounts withdrawn shall be deposited in the P pursuant to Sections 12585.3,12585.4 o,subdivision d o Section 12585.5 (g) Californians have a right to know about the presence of sex P f O f principal and interest become due and payable. fund.Any money made available under this section shall be returned to the of and Sections 12866.3 and 12866.4 o,the Water Code. offenders in their communities, near their schools, and around their f f (b) The Treasurer shall sell the bonds authorized by the committee General Fund,with interest at the rate earned by the money in the Pooled (2) The implementation of Chapter 3.5 (commencing with Section pursuant to this section. The bonds shall be sold upon the terms and Money Investment Account,from proceeds received f rom the sale of bonds children. 12840)o Part 6 ofDivision 6 o the Water Code. for the purpose of carrying out this chapter. (h) California•must also take additional steps to monitor sex f f f conditions specified in a resolution to be adopted by the committee offenders, to protect the public from them, and to provide adequate (c) The funds made available by this section shall be allocated only pursuant to Section 16731 of the Government Code. 5096.964. All money deposited in the fund that is derived from penalties for and safeguards against sex offenders,particularly those who to projects that are not part of the State Plan of Flood Control. 5096.956. The bonds authorized b this chapter shall be prepared, premium and accrued interest on bonds sold pursuant to this chapter shall Y P P P and and shall be available transfer to the General prey on children. Existing laws that punish aggravated sexual assault, be reserved in the or transf f 5096.825. Two hundred ninety million dollars ($290,000,000) executed,issued,sold,paid,and redeemed as provided in the State General f habitual sexual offenders,and child molesters must be strengthened and shall be available, upon appropriation, or-the protection, creation, and Obligation Bond Law, and all o the provisions o that law apply to the Fund as a credit to expenditures for bond interest. Pf P g f P f PPY improved.In addition,existing laws that provide for the,commitment and enhancement of flood protection corridors and bypasses through any of bonds and to this chapter and are hereby incorporated in this chapter as 5096.965. Pursuant to Chapter 4(commencing with Section 16720) control of sexually violent predators must be strengthened and improved. the following actions: though set forth in full in this chapter. o Part 3 ofDivision 4 of Title 2 of the Government Code,the cost of bond f g g f f P of Part Additional resources are necessary to adequately monitor and (a) Acquiring easements and other interests in real property 5096.957. (a) Solely for the purpose of authorizing the issuance issuance shall be paid out of the bond proceeds.These costs shall be shared supervise sexual predators and offenders.It is vital that the lasting effects to protect or enhance flood protection corridors and bypasses while and sale, pursuant to the State General Obligation Bond Law, o the proportionally by each program funded through this bond act. • i. P /l P YP P g f of the assault do not further victimize victims of sexual assault. • preserving or enhancing the agricultural use of the real property. bonds authorized by this chapter, the Disaster Preparedness and Flood 5096.966. The bonds issued and sold pursuant to this chapter maybe (j) Global Positioning System technology is an useful tool for (b) Constructing new levees necessary for the establishment of a Prevention Bond Finance Committee is hereby created.For the purposes refunded in accordance with Article 6(commencing with Section 16780)of monitoring sexual predators and other sex offenders and is a cost effective flood protection corridor or bypass. of this chapter, the Disaster Preparedness and Flood Prevention Bond Chapter 4 of Part 3 ofDivision 4 of Title 2 of the Government Code,which is measure for parole supervision.It is critical to have close supervision of (c) Setting back existing flood control levees, and in conjunction Finance Committee is "the committee"as that term is used in the State a part of the State General Obligation Bond Law.Approval by the electors this class of criminals to monitor these offenders and prevent them from with undertaking those setbacks, strengthening-or modifying existing General Obligation Bond Law.The committee consists ofthe Controller,the of the state for the issuance of the bonds under this chapter shall include Director offinance,and the Treasurer,or their designated representatives. approval of the issuance of any bonds issued to refund any bonds originally committing other crimes. levees and weirs. k California is the only state, of the number of states that have d Relocatingor flood proofing structures necessary or the The Treasurer shall serve as chairperson of the committee.A majority of issued under this chapter or any previously issued refunding bonds. O Y O p f g y f the committee may act or the committee. enacted laws allowing involuntary civil commitments for persons identified establishment of a flood protection corridor. Y f 50roceed. The Legislature bonds authorized and declares that,inasmuch as sexually violent predators, which does not provide for indeterminate (b) For purposes of the State General Obligation Bond Law, the as the proceeds from the sale of bonds authorized by this chapter are not (e) Acquiring interests in, or providing incentives for maintaining department is designated the "board." `proceeds of taxes"as that term is used in Article XIII B of the California commitments. California automatically allows for a jury trial every two agricultural uses of, real property that is located in a flood plain that 5096.958. The committee shall determine whether or not it is Constitution, the disbursement of these proceeds is not subject to the years irrespective of whether there is any evidence to suggest or prove that cannot reasonably be made safe from future flooding. the committed person is no longer a sexually x i\olent predator.As such,this necessary or desirable to issue bonds authorized pursuant to this chapter limitations imposed by that article. act allows California to protect the civil rights of those persons committed (fJ Acquiring easements and other interests in realproperty toprotect to carryout,this chapter and, i so, the amount o bonds to be issued and or enhance flood protection corridors while preserving or enhancing the P f f �r p system a sexually violent unnecessary or while at the same time protect society and the . wildlife value of the real property. sold.Successive issues ve bonds may be authorized and sold to carry.out PROPOS I Y'ION 83 system from unnecessary or frivolous jury trial actions where there is no those actions progressively, and it is not necessary that all of the bonds competent evidence to suggest a change in the committed person. (g) Floodplain mapping and related activities,including both of the authorized to be issued be sold at any one time. This initiative measure is submitted to the people in accordance with following. the provisions of Section 8 of Article II of the California Constitution. SEC.3. Section 209 of the Penal Code is amended to read: 5096.959. There shall be collected each year and in the same(1) The development of flood hazard maps, including all necessary manner and at the same time as other state revenue is collected,in addition This initiative measure amends and adds sections to the Penal Code 209. (a) Any person who seizes, confines, inveigles, entices, studies and surveys. to the ordinary revenues of the state,a sum in an amount required to pay and amends sections of the Welfare and Institutions Code; therefore, decoys,-abducts,conceals,kidnaps or carries away another person by any (2) Alluvial fan flood plain mapping. the principal of,and interest on,the bonds each year,and it is the duty of existing provisions proposed to be deleted are printed in strikeout type and means whatsoever with intent to hold or detain,or who holds or detains, 5096.827. Three hundred million dollars ($300,000,000)shall be all officers charged by law with any duty in regard to the collection of the new provisions proposed to be added are printed in italic type to indicate that person for ransom,reward or to commit extortion to exact from available;upon appropriation to the department,for grants for stormwater revenue to do and perform each and every act which is necessary to collect that they are new. another person any money or valuable thing,or any perss on who aids or flood management projects that meet all of the following requirements: that additional suns. abets any such act, is guilty of a felony, and upon conviction thereof, PROPOSED LAW shall be punished by imprisonment in the state prison for life without (a) Have a nonstate cost share of not less than 50 percent. 5096.960., Notwithstanding Section 13340 of the Government Code, possibility of parole in cases in which any person subjected to any such there is hereby appropriated from the General Fund in the State Treasury, act suffers death or bodilyharm,or is intentionally confined in a manner (b) Are not part of the State Plan of Flood Control. SECTION 1. SHORT TITLE y f for the purposes of this chapter,an amount that will equal the total of the which exposes that person to.a substantial likelihood of death,or shall be (c)Are designed to manage stormwater-runoff to reduce flood p �. following: This Act shall be known and may be cited as"The Sexual Predator punished b imprisonment in the state prison for life with the possibility of damage and where feasible,provide other benefits,including groundwater Punishment and Control Act:Jessica's Law." p y p p p y recharge,water quality improvement,and ecosystem restoration. (a) The sum annually necessary to pay the principal of,and interest parole incases where no such person suffers death or bodily harm. d Comply with applicable regional water quality control plans.' on, bonds issued and sold pursuant to this chapter, as the principal and SEC. 2. -FINDINGS AND DECLARATIONS (b)(1) Any person who kidnaps or carries away any individual to () PY pP g q Y P interest become due and payable. The People find and declare each of the following: commit robbery, rape, spousal rape, oral copulation, sodomy, or sexual (e)Are consistent with any applicable integrated regional water b The sum that is necessary to carry out Section 5096.963, management plan. O Y Y (a) The State of California,currently places a high priority on penetration in any violation of Section 264.1,288,or 289,shall be punished appropriated without regard to fiscal years. maintaining public safety through a highly skilled and trained law by imprisonment in the state prison for life with the possibility of parole. 5096.828. Funds provided by this article are 'only available 5096.961. The department request Investment enforcement as well as laws that deter and punish criminal behavior. for appropriation until July 1, 2016, and at that time the amount of q uestthePooledMoney p (2) This subdivision shall only apply if the movement of the victim Board to make a loan from the Pooled Money Investment Account, in (b) Sex offenders have very high recidivism rates. According to a is beyond that merely incidental to the commission of,and increases the indebtedness authorized by this chapter shall be reduced by the amount of accordance with Section 16312 of the Government Code,for the purpose 1998 report by the U.S.Department of Justice,sex offenders are the least risk of harm to the victim over and above that necessarily present in,the funds provided by this article that have not been appropriated. of carrying out this chapter. The amount of the request shall not exceed likely to be cured and the most likely to reoffend, and they prey on the intended underlying offense. the amount of the unsold bonds that the committee has, by resolution, most innocent members of our society.More than two-thirds of the victims (c) In all cases in which probation is granted,the court shall,except Article 16. Program Expenditures authorized to be sold for the purpose of carrying out this chapter. The " of rape and sexual assault.are under the age of 18. Sex offenders have a in unusual cases where the interests of justice would best be served by a department shall execute those documents required by the Pooled Money I dramatically higher recidivism rate for their crimes than any other type lesser penalty,require as a condition of the probation that the person be 5096.953. The Secretary of the'Resour•ces Agency shall provide for Investment Board to obtain and repay the loan.Any amounts loaned shall of violent felon. confined in the county jail for 12 months. If the court grants probation an independent audit of expenditures pursuant to this chapter to ensure be deposited in the fund to be allocated by the department in accordance c Childpornographyex lofts children and robs them of their without requiring the defendant to be confined in the count ail for 12 that all moneys are expended in accordance with the requirements o O p q g y J Y P 9 f with this chapter. innocence. FBI studies have shown that pornography is very influential months,it shall specify its reason or reasons for imposing a lesser penalty. this chapter. The secretary shall publish a list of all program and project 5096.962. Notwithstanding any other provision of this chapter, or in the actions of sex offenders. Statistics show that 90%of the predators (d) Subdivision (b) shall not be construed to supersede or affect expenditures pursuant to this chapter not less than annually, in written of the State General Obligation Bond Law,if the'I'reasurer sells bonds that N 126 1 Text of Proposed Laws ***Text of Proposed Laws 1 127 TEXT OF PROPOSED LAWS * * (PROPOSITION 83 CONTINUED) * * * TEXT OF PROPOSED LAWS A Section 667.61.A person may be charged with a violation of subdivision shall be transferred by the Controller as provided in subdivision(b). (d) This section does not apply to drawings,figurines,statues,or any (21) Any burglary of the first degree,as defined in subdivision(a)of (b) and Section 667.61. However, a person may not be punished under (b) Oat Except as provided in subdivision (d), out of the moneys film rated by the Motion Picture Association of America,nor does it apply Section 460,wherein it is charged and proved that another person,other subdivision (b) and Section 667.61 for the same act that constitutes a deposited pursuant to subdivision(a)as a result of second and subsequent to live or recorded telephone messages when transmitted,disseminated,or than an accomplice,was present in the residence during the commission i violation of both subdivision(b)and Section 667.61, convictions of Section 290,-one-third shall first be transferred to the distributed as part of a commercial transaction. of the burglary. SEC.4. Section 220 of the Penal Code is amended to read: Department of Justice Sexual Habitual Offender Fund, as provided in SEC.9. Section 667.5 of the Penal Code is amended to read: (22) Any violation of Section 12022.53. 220. a Except as provided in subdivision b, an person paragraph (1) of this subdivision. Out of the remainder of all moneys Y O P P O Y P 667.5. Enhancement of prison terms for new offenses because of (23) A violation of subdivision (b) or (c) of Section 11418. The who assaults another with intent to commit mayhem, rape, sodomy,oral deposited pursuant to subdivision(a), 50 percent shall be transferred to prior prison terms shall be imposed as follows: Legislature finds and declares that these specified crimes merit special copulation,or any violation of Section 264.1,288,or 289 ispunishab}e-shall the Department of Justice Sexual Habitual Offender Fund,as provided in consideration when imposing a sentence to display society's condemnation 1 25 percent shall be transferred to the Department of Justice (a) Where one of the new offenses is one of the violent felonies P g P Y Y' be punished by imprisonment in the state prison for two,four,or six years. paragraph( ) P P for these extraordinary crimes of violence against the person. DNA Testin Fund,as provided in paragraph 2 ,and 25 percent shall be specified in subdivision(c), in addition to and consecutive to any other Y g P g (b) Any person who, in the commission of a burglary of the first g P P g P O P ; degree,as defined in subdivision(a)of Section 460,assaults another with allocated equally to counties that maintain a local DNA testing laboratory, prison terms therefor,the court shall impose a three-year w e-year term for each (d) For the'purposes y this section,the defendant shall be deemed intent to commit rape,sodomy,oral copulation,or any violation of Section as provided in paragraph(3). prior separate prison term served by the defendant where the prior offense to remain in prison custody for an offense until the official discharge was one of the violent felonies specified in subdivision(c).However,no from custody or until release on parole,whichever first occurs,including 264.1,288,or 289 shall be punished by imprisonment in the state prison for (1) Those moneys so designated shall be transferred to the additional term shall be imposed under this subdivision for any prison any time during which the defendant remains subject to reimprisonment life with the possibility ofparole. Department of Justice Sexual Habitual Offender Fund created pursuant to term served prior-to'a period of 10 years in which the defendant remained for escape from custody or is reimprisoned on revocation of parole. The SEC.5. Section 269 of the Penal Code is amended to read: paragraph(5)of subdivision(b)of Section 11170 and,when appropriated by free of both prison custody and the commission of an offense which results additional penalties provided for prior prison terms shall not be imposed the Legislature,shall be used for the purposes of Chapter 9.5(commencing 269. (a) Any person who commits any of the following acts upon a in a felony conviction. unless they are charged and admitted or found true in the action for the with Section 13885) and Cihapter 10 (commencing with Section 13890) O P O PP Y new offense. child who is under 14 years of age and i6 seven or more years younger than b Except where subdivision a applies,where the new offense is an the person is guilty ofa aggravated sexual assault of a child: of Title 6 of Part 4 for the purpose of monitoring, apprehending, and P g Y gg felony for which a prison sentence is imposed,in addition and consecutive (e) The additional penalties provided for prior prison terms shall not prosecuting sexual habitual offenders. (1) A Rape,in violation of paragraph(2)or(6)of subdivision(a)of to any other prison terms therefor,the court shall impose a one-year term be imposed for any felony for which the defendant did not serve a prior (2) Those moneys so designated shall be directed to the Department Section 261. for each prior separate prison term served for any felony;provided that separate term in state prison. of Justice and transferred to the Department of Justice DNA Testing m osed under this subdivision for an (2) ARape or sexual penetration,in concert,in violation of Section Fund, which is hereby created, for the exclusive purpose of testing, no additional term shall be i P Y prison (f) A prior conviction of felony shall include a conviction in another 264.1. deoxyribonucleic acid(DNA)samples for law enforcement purposes.The term served prior to a period of five years in which the defendant remained jurisdiction for an offense which,if committed in California,is punishable 3 Sodom paragraph() () f () y P P appropriation free of both prison custody and the commission of an offense which results by imprisonment in the state prison if the defendant.served one year or bd y,in violation 2 2 or 3 o subdivision c, by t moneys that fund shall be available for expenditure upon a ro nation in a felony conviction. more in prison for the offense in the other jurisdiction.A prior conviction dttress, menace,or feat Of irliniediate and unlawful bodily ir�trfy Oft t or subdivision (d), of Section 286, by the Legislature. (3) Those moneys so designated shall be allocated equally and (c) For the purpose of this section,"violent felony"shall mean any of a particular felony shall include a conviction in another jurisdiction for vietirn or ariothm person. of the following: an offense which includes all of the elements of the particular felony as distributed quarterly to counties that maintain a local DNA testing I Murder or voluntary manslaughter. defined under California law if the defendant served one year or more in (4) Oral copulation, in violation of paragraph (2) or (3) of laboratory. Before making any allocations under this paragraph, the O Y g prison for the offense in the other jurisdiction. subdivision (c), or subdivision (d), of Section 288a, Controller shall deduct the estimated costs that will be incurred to set up and (2) Mayhem. force,violenee,duress,menace,ot fear of immediate and tinlawful bodily administer the payment of these funds to the counties.Any funds allocated (3) Rape as defined in paragraph (2) or (6) of subdivision (a) of (g) A prior separate prison term for the purposes ioof this section shall injttry on the victim or anothei persm. to a county pursuant to this paragraph shall be used by that county for the Section 261 or paragraph(1).or(4)of subdivision(a)of Section 262. mean a continuous completed period combination incarceration imposed conseforthcutive particular offense alone or in combination with concurrent or consecutive (5) A Sexual penetration,in violation of subdivision(a)of Section 289. exclusive purpose of testing DNA samples for law enforcement purposes. (4) Sodomy sentences for other crimes, including any reimprisonment on revocation (b) Any person who violates this section is guilty of a felony,and (c) Notwithstanding any other provision of this section, the as defined in of parole which is not accompanied by a new commitment to prison,and shall be punished by imprisonment in the state prison for 15 years to life. Department of Corrections or the Department of the Youth Authority may subdivision(c)or(d)of Section 286., including any reimprisonment after an escape from incarceration. (c) The court shall impose a consecutive sentence for each offense collect a fine imposed pursuant to this section from a person convicted of a (5) Oral copulation (h) Serving a prison term includes any confinement time in any state that results in a conviction under this section i the crimes involve separate violation of any offense listed in subdivision(a)of Section 290,that results as f P prison or federal penal institution as punishment for commission of an victims or involve the same victim on separate occasions as defined in in incarceration in a facility under the jurisdiction of the.Department defined in subdivision(c)or(d)of Section 288a. subdivision d o Section 667.6. of Corrections or the Department of the Youth Authority. All moneys offense,including confinement in a hospital or other institution or facility () r (6) Lewd or lascivious act credited as service of prison time in the jurisdiction of the confinement. SEC.6. Section 288.3 is added to the Penal Code,to read: collected by the Department of Corrections or the Department of the Youth as defined in subdivision(a)or(b)of Section 288. Authority under.this subdivision shall be transferred,once a month,to the (i) For the purposes of this section, a commitment to the State 288.3. (a) Every person who contacts or communicates with a Controller for deposit in the General Fund,as provided in subdivision(a), (7) Any felony,punishable by death or imprisonment in the state Department of Mental Health as a mentally' disordered sex offender minor, or attempts to contact or communicate with a minor, who knows for transfer by the Controller,as provided in subdivision(b). prison for life. following a conviction of a felony,which commitment exceeds one year in or reasonably should know that the person is a minor, with intent to (8) Any felony in which the defendant inflicts great bodily injury duration,shall be deemed a prior prison term. (d) An amount equal to one hundred dollars for every firie imposed y P P g (j) For the purposes of this section, when a person subject to the commit an offense specified in Section 207,209,261,264.1,273a,286,288, on an person other than an accomplice which has been charged and i pursuant to subdivision_ (a) In excess of one hundred dollars shall be 2.88a,288.2,289,311.1,311.21 311.4 or 311.11 involving the minor shall be transferred to the Department of Corrections and Rehabilitation to defray proved as provided for in Section 120227, 12022.8,or 12022.9 on or after custody,control,and discipline of the Directorof Corrections is incarcerated punished by imprisonment in the state prison for the term prescribed for an the cost of the global positioning system used to monitor sex offender July 1,1977,or as specified prior to July 1,1977, in Sections 213,264,and at a facility operated by the Department'of the Youth Authority, that attempt to commit the intended offense. parolees. 461,or any felony in which the defendant uses a firearm which use has been incarceration shall be deemed to be a term served in state prison. (b) As used in this section, "contacts or communicates with charged and proved as provided in subdivision(a)of Section 12022.3, or k Notwithstandingsubdivisions d and or an other provision shall include direct and indirect contact or communication that may be SEC.8. Section 311.11 of the Penal Code is amended to read: Section 12022.5 or 12022.55. O co to Y Y of law,where one of the new offenses is committed while the defendant is j achieved personally or b.use o an agent or agency, an print medium, 311.11. (a) Every person who knowingly possesses or controls any P Y Y f gY P (9) Any robbery. temporarily removed from prison pursuant'to Section 2690 or while the any postal service,a common carrier or communication common carrier, matter,representation of information,data,or image, including,but not any electronic communications system,or any telecommunications, wire, limited to, any film, filmstrip, photograph, negative, slide, photocopy, (10) Arson,in violation of subdivision(a)or(b)of Section 451. defendant is transferred to a community facility pursuant to Section 3416, 11 The offense Sexual penetration as defined in subdivision a or 6253,or 6263,or while the defendant is on furlough pursuant to Section computer,or radio communications device or system. videotape, video laser disc, computer hardware, computer software, ( ) P ( ) 6254,the defendant shall be subject to the full enhancements provided for computer floppy disc, data storage media, CD-ROM, or computer- (j)of Section 289 P (c) A person convicted of a violation of subdivision (a) who hasearatevioence, ures in this section. previously been convicted of a violation of subdivision (a) shall be generated equipment or any other computer-generated image that contains fbiee,punished b been additional and consecutive term o imprisonment in the, or incorporates in any manner, any film or filmstrip, the production of This subdivision shall not apply when a full,separate,and consecutive P y f P term is imposed pursuant to an other provision of law. state prison for five years. - which involves the use of a person under the age of 18 years, knowing (12) Attempted murder. - P P Y that the matter depicts a person under the age of 18 years personally (13) A violation of Section 12308,12309,or 12310. SEC. 10. Section 667.51 of the Penal Code is amended to read: SEC. 7. Section 290.3 of the Penal Code is amended to read: engaging in or simulating sexual conduct,as defined in subdivision(d)of 667.51. a An person who is convicted of violating 290.3. a Ever person who is convicted of an offense specified Section 311.4,is guilty of elon and shall be punished b (14) Kidnapping. ( ) y P g O Y P Y P g Y ��.f Y P Y - Section 288 or 288.5 shall receive afive-year enhancement for a prior in subdivision a of Section 290 shall,in addition to an imprisonment or imprisonment iri the state prison,or a count ail for up,to one year,orb a (15) Assault with the intent to commit O Y P P P YJ P Y Y oi conviction of an offense listed specified in subdivision(b),provided tha j fine,or both,imposed for violatieii commission of the underlying offense, fine not exceeding two thousand five hundred dollars($2,500),or by both 0!a!eopulation a specified felony,in violation of Section 220. no additional tenn shall be inrVOsed under this subdivision for an be punished by a fine of two three hundred dollars(-$21"($300)upon the the fine and imprisonment. (16) Continuous sexual abuse of a child, in violation of Section first conviction.or a fine of three five hundred dollars('$300)($500)upon (b) if"a Every person who commits a violation ofsubdivision(a),and 288.5. free of both Prison eusto y and the COLM!IiSSi011 Of an Offense that results the second and each subsequent conviction,unless the court determines who has been previously convicted of a violation of this section,er of (17) Carjacking,as defined in subdivision(a)of Section 215. in a felony eonvi that the defendant does not have the ability to pay the fine. 18 -A Rae spousal rape, or sexual penetration, in concert, in ( ) Rape, P P � P .(b) Section 261,262, 264,1,269,285,286,288,288a,288.5,or 289, An amount equal to all fines collected pursuant to this subdivision 3.*,-he-vr--size an offense described in subparagraph (A)of paragraph violation of Section 264.1. or any offense committed in another jurisdiction that includes all of the during the preceding month upon conviction of,or upon the forfeiture of (2)of subdivision (a)of Section 290, or an attempt to commit any of the (19) Extortion,as defined in Section 518,which would constitute a elements of any of the offenses set firth specified in this subdivision. bail by, any person arrested for,or convicted of,committing an offense above-mentioned offenses, is guilty of a felony and shall be punished by felony violation of Section 186.22 of the Penal Code. (c) Section 261,264.1,286,288,288a,288.5,oi 289,oi any offense specified in subdivision (a) of Section 290, shall be transferred once a imprisonment in the state prison for two,four,or six years. (20) Threats to victims or witnesses, as defined in Section 136.1, month by the coueoininitted in another jutisdietiort that ineludes all of the elements of any nty treasurer to the Controller for deposit in,the General (c) It is not necessary to prove that the matter is obscene in order to which would constitute a felony violation of Section 186.22 of the Penal Of the offenses set`--''-inthis subdi%is�r Fund.Moneysrdeposited in the General Fund pursuant to this subdivision establish a violation of this section. Code. (d) A violation of Section 288 or 288.5 by a person who has been 4 128.1 Text of Proposed Laws*tE P ***Text of Proposed Laws 1 129 TEXT OF PROPOSED LAWS * * * (PROPOSITION 83 CONTINUED) * * * TEXT OF PROPOSED LAWS previously convicted two or more times of an offense listed specified shall commence at the time the person otherwise would have been released another person in the commission of the present offense. in subdivision (b) shall be punished by from prison. (b) Except as provided in subdivision(a),a any person who is convicted (7) The defendant administered a controlled substance to the victim imprisonment in the state prison for 15 years to life. OL (d) A full,separate;and consecutive term shall be served imposed of an offense specified in subdivision(c)under one of the circumstances in the commission of the present offense in ivictions were fbi violations of Section , for each violation of Section 220, other than an assaultA ...:tL intent to specified in subdivision(e)shall be punished by imprisonment in the state violation of Section 12022.75. Only if tile Milent Violation 01 at least one of the prior commit mayhern,provided that the petson has been convicted P prison for 15 years to life (8) The defendant committed the present offense in violation of COLIV�ctions is fbi an offense other than a violation of subdivision(a�� of violating Section 220 fin an offense othei than an assault with intent provided in subdivision Section 264.1,subdivision(d)of Section 286,or subdivision(d)of Section Section 288.For purposes of this,subdivision,a prior conviction is r quized to e(nnnni mayhern,paiagraph (2), (3), (6), or(?) of subdivision (a)of (c) This section shall apply to any of the following offenses: 288a, and, in the commission of that offense, any person committed any to have been fbi ehaiges biought and tried separately.The prooisions o Section 261, paragraph(1),(4), or (5) F 1 ­1 1 1 (a)of S(zetion 262, (1) A Rape,in violation of paragraph(2)or(6)of subdivision(a)of act described in paragraph(1),(2),(3), (4),(6),or(7)of this subdivision. Article 2.5 (commencing with Section 2930) of eliapteL 7 of Title 1 of Section I subdiNision(b)of Section artappucestateson 289,of committing sodoiny in violation of subdivision(k)4�eetion 286, Section 261. (f) If only the minimum number of circumstances specified purstant to this section,but that person shall net other wise be release of committing oral copulation in violation of stibdiv ision(k)of Section (2) A Spousal rape,in violation of paragraph(1)or(4)of subdivision in subdivision (d) or (e) which that are required for the punishment (a)of Section 262. provided in subdivision(a)or(b)to apply have been pled and proved,that paiole prior to that time. 288a,ot of conintitting sodemy oi o a!copulation in violation of SectionSEC. 11. Section 667.6 of the Penal Code is amended to read: (3) A Rape; spousal rape, or sexual penetration, in concert, in circumstance or those circumstances shall be used as the basis for imposing 7•.6. a) An person who is an offense specified violation of Section 264.1. the term provided in subdivision(a)or(b), whichever is greater, rather 66 ( Y P than being used to impose the punishment authorized under any other in subdivision (e) if the crimes involve separate victims or involve the (4) A Lewd or lascivious act, in violation of subdivision (b) of provision of law, unless another provision of law provides for a greater or(5)of subdivision(a)of Section 262,Section 264.1,sitbdivision(b)of same victim on separate occasions. Section 288. penalty or the punishment under another provision of law can be imposed Section 288,Section 288.5 oi subdiViSi011(a)Of Section 28�,of committing In determining whether crimes against a single victim were (5) A Sexual penetration, in violation of subdivision(a)of Section in addition to the punishment provided by this section. However, if any sodOMY in violation of subdi vision(k)of Section 286,of eornmitting-oral committed on separate occasions under this subdivision,the court shall 289. additional circumstance or circumstances specified in subdivision(d)or ClIpUlatill"it!violation of subdivis�on(k)of Section 288a,orof committing consider whether,between the commission of one sex crime and another, (6) Sodomy ci oial copulation Sodomy, in violation of paragraph (e)have been pled and proved, the minimum number of circumstances sodomy or oral copulation in violation of Section 286 OL 288a by force7, , the defendant had a reasonable opportunity to reflect upon his or her (2)or(3)of subdivision(c),or subdivision(d),of Section 286 ar 288a by shall be used as the basis for imposing the term provided in subdivision violence, dttess, menace, or fear of immediate and unlawful bodily actions and nevertheless resumed sexually assaultive behavior.Neither themenace,violence,iee, (a),and any other additional circumstance or circumstances shall be used injuiy on the victim oi another Fetson convicted of an offense specified duration of time between crimes, nor whether or not the defendant lost injury on the victim oi another pet son. to impose any punishment or enhancement authorized under any other in subdivision(e)and who has been convicted previously of any of those or abandoned his or her opportunity to attack, shall be, in and of itself, ( ) p f paragraph () () f rovision o law. offenses shall receive a five-year enhancement for each of those prior determinative on the issue of whether the crimes in question occurred on 7 A Oral copulation, in violation o 2 or 3 o P / convictions separate occasions. subdivision(c),or subdivision(d),of Section 288a. (g) Notwithstanding Section 1385 or any other provision of law,the (8)'Lewd or lascivious act,in violation of subdivision(a)of Section court shall not strike any allegation, admission, or finding of any of the The term shall be served consecutively to any other term of 288 circumstances specified in subdivision (d) or(e)for any person who is • imprisonment and shall commence from the time the person otherwise �. subject to punishment under this section. Ld would have been released from imprisonment.The term shall not be included yeai enhancement imposed undet this subdivision, the court also tna� in any determination pursuant to Section 1170.1.Any other term imposed '(9) Continuous sexual abuse of a child, in violation of Section (g) The tenn specified in subdivision(a)ot(b)sliall be imposed o impose a fine not to exceed twenty thousand dollars($20,000)fm anyone subsequent to that term shall not be merged therein but shall commence at 288.5. the defendant once for a"offense or offeiises eornmitted against a single n der these pro v isions.The fine imposed and collected pursi the time the person otherwise would have been released from prison. (d) The following circumstances shall apply to the offenses specified vietim during a single occasion.if thete ate multiple victims dut ing a single anee (e) This section shall apply to the following ooccasion,the tei in specified in subdi v ision(a)ot(b)shall be imposed on to this subdiv.sion shall be deposited in the Victim Witness Assist ffensesr in subdivision(c): the defendant once for each separate victim. T-eirns for other off-enses Fund to be a - I I ' .J f 1 iatiOLI to fund child sexcal exploitation (1) Rape,in violation ofparagraph(2),(3),(6),or(7)ofsubdivision (1) The defendant has been previously convicted of an offense committed diuring a single occasion shall be imposed as authmized unde and child sexual abuse victim counseling eenteis and pievention piog.aIns (a)of Section 261. specified in subdivision(c), including an offense committed in another any othet law,including Section 667.6,ifapplicable. established putsuant to Section 13837jurisdiction that includes all of the elements of an offense specified in (2) Spousal rape, in violation of paragraph (1), (4), or (5),of (h) Probation Notwithstanding any other provision of law,probation (b) Any person who is convicted of an offense specified in subdivision(c). subdivision e and who has served two or more prior prison terms subdivision(a)of Section 262. shall not be granted to,nor shall the execution or imposition of sentence be f� () P P (2) The defendant kidnapped the victim of the present offense and suspended for,an person who is s any offense specified in paIagL hubject to unishment under this section for as defined in Section 667.5 for an � o (3)'Rape,spousal rape,orsexual penetration,in concert,in violation P Y P J Y r the movement of the victim substantially increased the risk of harm to those offenses shall receive a 10-year enhancement for each of those prior of Section 264.1. the victim over and above that level of risk necessarily inherent in the • terms (4) Sodomy, in violation of paragraph(2)or(3)of subdivision(c), underlying offense in subdivision(c). (i) For the any offense specified in paragraphs(1)to(7), inclusive, this subdivision for an�prison tenn served prior to a in or subdivision(d)or(k),of Section 286. of subdivision(c), the court shall impose a consecutive sentence for each which the pet son i einained ftee of both prison etistod non (3) The defendant inflicted aggravated mayhem or torture on the offense that results in a conviction under this section if the crimes involve (5) Lewd or lascivious act,in violation of subdivision(b)of Section victim or another person in the commission of the present offense in ' 288. violation of Section 205 or 206. separate victims or involve the same victim on separate occasions as enhancement i subdivision,the C 6 Continuous sexual abuse o a child, in violation o Section defined in subdivision(d)of Section 667.6. exceed . f f is The defendant committed the present offense during the (j) The penalties provided in this section to shall apply,only if the sentenced undei this subdivision.The fine imposed and collected ptit suant' 288.5. commission of a burglary of the first degree,as defined in subdivision(a)of existence of any fi�required tinder circumstance specified in subdivision to this subdivision shall be deposited in the Vietirn Witness Assistance (7) Oral copulation, in violation of paragraph (2) or (3) of Section 460,with intent to commit an offense specified in subdivision(c). (d)or(e)shall be is alleged in the accusatory pleading pursuant to this Fund to be available fbi appropriation to fund child sexual exploitation subdivision(c),or subdivision(d)or(k),of Section 288a. (5) The defendant committed the present offense in violation of section,and is either admitted by the defendant in open court or found to and child sexual abuse victim counseling centers and prevention proglanis (8) Sexual penetration, in violation of subdivision (a) or (g) of Section 264.1,subdivision(d)of Section 286,or subdivision(d)of Section be true by the trier of fact. established pursuant to Section . Section 289. 288a,and,in the commission of that offense,any person committed any act 6) Article 2.5 (commencing with Section 2930) of Chapter (c) In lieu of the term provided in Section 1170.1, a full, separate, (9) As a present offense under subdivision (c)or(d), assault with described in paragraph(2),(3),or(4)of this subdivision. Title f 0FPaLt 3 shall apply to reduce the rninimum terin oF25 years in tile and consecutive term may be imposed for each violation of Section 220 intent to commit a specified sexual offense,in violation of Section 220. (e) The following circumstances shall apply to the offenses specified state pi ison imposed put suant to subdivision(a)ot f 5 yeats in the state other-than art assault with intent to Mnlni�inayltein, provided that (10) As a prior conviction under subdivision (a)or(b), an offense in subdivision(c): prison imposed pu.stiant to subdivision(b).Howevet,ii.no ease shall the person has been convicted previously of violating Section 220 fbl at! committed in another jurisdiction that includes all of the elements of an (1) Except as provided in paragraph (2) of subdivision (d), the mininturn tern,oF25— 15 be reduced by in t4br offense otheL than an assault with intent to commit LnaYhein,Magraph offense specified in this subdivision. defendant kidnapped the victim of the present•offense in violation of (fJ In addition to any enhancement imposed pursuant to subdivision. Section 207,209,or 209.5. to!conduct mdit iedtietion.in no ease shall any person who is punished or(5)of subdi 262,Section 264.1,subdivision(b)-of (a)or(b),the court may also impose a fine not to exceed twenty thousand (2) Except as provided in paragraph (4) of subdivision (d), the tindri this section be mleased on parole prioi t6 seiving at least 85 percent Section 288,Section 2�45 or subdivision(a)of Section 289,of commit....11 dollars ($20,000)for anyone sentenced under those provisions..The fine defendant committed the present offense during the commission of a of the inininnint tcnn of 25 or 15 years in the state sodorny in violation of subdivision(k)of Section 2 Mal imposed and collected pursuant to this subdivision shall be deposited in burglar , SEC. 13. Section 667.71 of the Penal Code amended to read: copulation in violation of subdiv!ston f�Fe!�on 288a,or of committing the Victim-Witness Assistance Fund to be available for appropriation to 667.71. (a) For the purpose of this section, a habitual sexual• sodonty or eta! e0pUlatiOn in 286 or 288a by fund child sexual exploitation and child sexual abuse victim counseling was then closed to the pttblie,in violation of Section 459. offender is a person who has been previously convicted of one or more of violence,dtiress,menace,ot feaL of immediate and cniawfit!bodily ir�U7 centers and prevention programs established pursuant to Section 13837. (3) The defendant personally inflicted great bodily injury on the the offenses listed specified in subdivision(c)and who is convicted in the on the vietint or another pei son whetheL oi not the If the court orders a fine to be imposed pursuant to this subdivision(a) victim or another person in the commission of the present offense in present proceeding of one of those offenses. dining a single transaetio an offense specified in subdivision (e) if the or-(b),the actual administrative cost of collecting that fine,not to exceed violation of Section 12022.53,12022.7,or.12022.8. is crimes involve the same victim on the same occasion.A term may be 2 percent of the total amount paid,may be paid into the general fund of the (pr A habitual sexual offender forpunishable.2 yrsshall be punished imposed consecutively pursuant to this subdivision ifa person is convicted county treasury for the use and benefit of the county. (4) The defendant personally used a dangerous or deadly weapon or by imprisonment in the state prison for 25 years to life. Article z� of at least one offense specified in subdivision(e). If the term is imposed a firearm in the commission of the present offense in violation of Section (commencing with Seetimi 2930)of Chaptei 7 of Title 1 of Part 3 shall SEC. 12. Section 667.61 of the Penal Code is amended to read: 12022,12022.3,12022.5,or 12022.53. apply to redtiee any iiiiiiinntin terni of 25 yeats in the state prison imposed consecutively pursuant to this subdivision,it shall be served consecutively specified of an offense s who is con s) A A(61. a Any person w v p to any other term of imprisonment,and shall commence from the time the 667. (5) The defendant has been convicted in the present case or cases of in subdivision (c)under one or more of the circumstances specified in committing an offenses specified in subdivision c against more than one person otherwise would have been released from imprisonment.The term g P ( ) g shall not be included in any determination pursuant to Section 1170.1.Any subdivision(d) or under two or more of the circumstances specified in victim. other term merged therein but imposed subsequent to that term shall not be subdivision(e)shall be punished by imprisonment in the state prison for in no ease shall any re.son who is pttnished under this section be released P q _ 25 years to life and shall not be eligible for release o..pat ole fbi (6) The defendant engaged in the tying or binding of the victim or on parole prior to serving at least 85 peteent of the ininimurn term of 25 130 1 Text of Proposed Laws*yt ***Text of Proposed Laws 1 131 I • 1 i TEXT OF PROPOSED LAWS * * * (PROPOSITION 83 CONTINUED) * * TEXT OF PROPOSED LAWS violation of Section 205. (5) Burglary of the first degree,as defined in Section 460. waives parole and discharges the inmate from custody of the department. yeats in the state. (6) Rape, in violation of This subdivision shall also be applicable to inmates who committed crimes (c) This section shall apply to any of the following offenses: (K) Torture,in violation of Section 206. subdivision Section 261,262, prior to July 1,1977,to the extent specified in Section 1170.2. (1) A Rape,in violation of paragraph(2)or(6)of subdivision(a)of (L) Kidnapping, in violation of Seetion 209.5_Continuous sexual or 264.1. (3) Notwithstanding paragraphs(1)and(2),in the case of any offense Section 261. abuse of a child,in violation of Section 288.5. (7) Assault with intent to commit rape or sodomy a specified sexual for which the inmate has received a life sentence pursuant to Section 667.61 (2) ASpousal rape,in violation of paragraph(1)or(4)of subdivision (M) A felony violation of Section 136.1 or 137. offense,in violation of Section 220. or 667.71,the period of parole shall be five 10 years. (a)of Section 262. (N) r Section Sodomy,in violation o 286. Y (8) Escape,in violation of Section 4530 or 4532. pose a stibstanti 1 datigei to public safety,the Board of PI isori Tenyis shall (3) A Rape, spousal rape, or sexual penetration, in concert, in (0) Oral copulation,in violation of Section 288a. (9) A Sexual penetration, in,violation of Section violation of Section 264.1. (P) Sexual penetration,in violation of Section 289 or 264.1. 289 or 264.1. M-fl-4--m-t l,1--.7ing to detelLifirte if the parolee shall be subjeet to a single t period of parole.The board shall eendtict the hearing (4) A Lewd or lascivious act, in violation of subdivision(a)or(b) (Q) Aggravated sexual assault of a child,in violation of Section 269. (1'0) Sodomy,in violation of Section 286. and standards governingpaicle tevoeation. of Section 288. 2 An person previouslyconvicted of a felon specified in 11 Oral copulation,in violation of Section 288a. request fbr parole extension shall be made no less than 180 days prior to the (5) A Sexual penetration, in violation of subdivision (a) or (j) of O Y P • Y p ( ) p Section 289. paragraph(1),or assault with intent to (12) Carjacking,in violation of Section 215. commit murder under former Section 217,who is convicted of a subsequent (13) in violation of Section 209.5 Continuous sexual (4) The parole authority shall consider the request of any inmate (6) A Continuous sexual abuse of a child, in violation of Section felony and who was personally armed with a firearm at any time during regarding the length of his or her parole and the conditions thereof. 288.5. its commission or attempted commission or was unlawfully armed with a abuse of a•child,in violation of Section 288.5. g g g (7) ASodomy,in violation of subdivision(c)or(d)of Section 286 by firearm at the time of his or her arrest for the subsequent felony. (14) Aggravated sexual assault of a child,in violation of Section 269. (5) Upon successful completion of parole, or at the end of the (b)(i) The existence of any fact whieb that would make a person maximum statutory period of parole specified for the inmate under fbiee,violertee,datess,mermee,or few of immediate and unlawful bodily (3) Aggravated arson,in violatio$of Section 451.5. paragraph (1), (2), or(3), as the case may be, whichever is earlier, the injury on the victim OL another person. - ineligible for probation under subdivision (a) shall be alleged in the (b)(1) The existence of any fact whieh that would make a person accusatory pleading,and either admitted by the defendant in open court, inmate shall be discharged from custody. The date of the maximum (8) ineligible for probation under subdivision (a) shall be alleged in the statutory period of parole under this subdivision and paragraphs(1),(2), or found to be true by the ,_._ (9)--AOral copulation,in violation of subdivision(c)or(d)of Section accusatory pleading,and either admitted by the defendant in open court, and(3)shall be computed from the date of initial parole c , 288a `or found to be true by the' guilt tablished by a plea of guilty or nolo eontendei e or by a trial by the and shall be a period ithoutjttitrier offact. bodily ir�ury on the vietim or anothei peison. guilt is established by plea of guilty ot nolo contendete,or by trial by thechronologically determined. Time during which parole is suspended (10) A(9)Kidnapping,in violation of subdivision(b)of Section 207. eottitsittingvvithoutajuitrier offact. isioii does ot because the prisoner has absconded.or has been returned to custody as a (H�A (10) Kidnapping, in violation of former subdivision (d) of (2) preeeedings purstiant to Division 3(emmitencing with Seetion 3000)oi Division parole violator shall not be credited toward any period of parole unless the prisoner is found not guilty ofs the parole violation.However,in no eases Section 208(kidnapping to commit specified sex offenses). .,_,_ ," eiceept the period of parole is subject to the following: • (11)Kidnapping,in violation of subdivision(b)of Section 209 the „_,r___and,__._._.:___ i • a (A) Except as provided in Section 3064,in no case may a prisoner • with the intent to commit (3) As used in subdivision(a),"used a firearm"mean display s to p y a specified sexual offense. g y y SEC. 17. Section 3000 of the Penal Code is amended to read: subject to three ears on parole be retained under parole supervision or in firearm in a menacing manner,to intentionally fire it,or to intentional] J Y P P P (13) A (12) Aggravated sexual assault of a child, in violation of strike or hit a human being with it,or to use it in any manner that qualifies 3000. (a)(1) The Legislature finds and declares that the period custody for a period longer than four years from the date of his or her initial Section 269. under Section 12022.5. immediately following incarceration is critical to successful reintegration parole. of the offender into society and to positive citizenship.It is in the interest of B Exce t as provided in Section 3064, in no case may a prisoner " (13) An offense committed in another jurisdiction that has f (3c carry used in subdivision(a),"armed with a firearm"means to O p p Y knowingly carry or have available for use a firearm as a means of offense public safety for the state to provide for the supervision of and surveillance subject to five years on parole be retained under parole supervision or in includes all of the elements of an offense specified in of parolees, including the judicious use of revocation actions, and to custody for a period longer than seven years from the date of his or her initial (13),inclusive,of this subdivision. or defense. provide educational,vocational,family and personal counseling necessary parole or fioin the date of extension of parole purstiant to paiagi SEC. 15. Section 1203.065 of the Penal Code is amended to read: (d) Notwithstanding Section 1385 or any other provision of law,the to assist parolees in the transition between imprisonment and discharge.A (C) Except asprovided in Section 3064,in no case may aprisoner subject court shall not strike an allegation, admission, or finding o an prior 1203.065. (a) Notwithstanding any otherprovision oflaw,probation sentence pursuant to Section 1168 or 1170 shall include a period of parole, Y g � g f Y P to 10 years on parole be retained under parole supervision or in custody for a conviction specified in subdivision (c)for any person who is subject to shall not be granted to,nor shall the execution or imposition of sentence unless waived,as provided in this section. period longer than 15 years from the date ofhis or her initial parole. punishment under this section. be suspended for, any person who is convicted of violating paragraph % p (2) The Legislature finds and declares that it is not the intent of this 6 The Department of Corrections shall meet with each inmate at (2)or(6)of subdivision(a)of Section 261,Section 264.1,266h,266i,err O P (e) Notwithstanding any otherprovision oflaw,probation shall not be section to diminish resources allocated to the Department of Corrections least 30 days prior to his or her good time release date and shall provide, 266j,or 269,paragraph(2)or(3)of subdivision(c),or subdivision(d),of Y p g granted to,nor shall the execution or imposition ofsentence be suspended for parole functions for which the department is responsible.It is also not under guidelines specified b the parole authority, p Section 286,paragraph(2)or(3)of subdivision(c),or subdivision(d),of g p y p y,the conditions of parole for,any person who is subject to punishment under this section. the intent of this section to diminish the resources allocated to the Board and the length of parole u to the maximum period of time provided b Section 288a,subdivision(a)of Section 289, g p p p p y copulation in violation(f) This section shall apply only if the defendant's status as a habitualSeetion288a of Prison Terms to execute its duties with respect to parole functions for law.The inmate has the right to reconsideration of the length of parole and sexual offender is alleged in the in€armatien accusatory pleading, andateandunlaw ii�uty on the vi which the board is responsible. conditions thereof by the parole authority.The Department of Corrections either admitted by the defendant in open court,or found to be true by the trienaee�� of violating ( ) (3) The Legislature finds and declares that diligent effort must or the Board of Prison Terms may impose as a condition of parole that a or subdivision c of Section 311.4. (b)(1) Except in unusual cases where the interests of justice would 'be made to ensure that parolees are held accountable for their criminal prisoner make payments on the prisoner's outstanding restitution fines or plea of guilty or riolo conteridere or by ti ial by court sitting without a jurybehavior,including,but not lirpited to,the satisfaction of restitution fines orders imposed pursuant to subdivision(a)or(c)of Section,13967 of the trier of fact. best be served if the person is granted probation; probation shall not� and orders. Government Code,as operative prior to September 28,1994,or subdivision be granted to any person who is convicted of a violation a� violating b of Section 1202.4. SEC. 14. Section 1203.06 of the Penal Code is amended to read: paragraph(7)of subdivision(a)of Section 261,subdivision(k)of Section (4) O or(� 1203.06. Notwithstanding Section 1203 w 286, subdivision (k) of Section 286, subdivision (g) of Section 289, or (7) For purposes of this chapter,the Board of Prison Terms shall be (a) Probation Notwithstanding any other provision of law,probation Section 220 for assault with intent to commit irtstittittions that a erson is The parole period of any person found to considered the parole authority. be a sexually violent predator shall 8 The sole authority to issue warrants for the return to actual shall not be granted to,nor shall the execution or imposition of sentence be ( ) Y suspended for,nor shall a finding bringing the defendant within this section a specified sexual offense. ��be tolled until that person is found to no longer be a sexually custody of any state prisoner released on parole rests with the Board of be stricken pursuant to Section 1385 or,an of the following persons: violent predator, at which time the period of parole, or any remaining Prison Terms,except for an escaped state prisoner or an state prisoner P r Y g P (2) When probation is granted,the court shall specify on the record shall begin to run. p Y p p Y portion thereof p g released prior to his or her scheduled release date who should be returned the P 1 An person who personally used a firearm Burin the commission and shall enter on the minutes the circumstances indicating that e • O Y P p Y g an provision to the contrary in Article 3 (b) Notwithstanding y p Y to custod and Section 3060 shall apply. or attempted commission of any of the following crimes: interests of justice would best be served by the disposition; Y, pP Y (commencing with Section 3040)of this chapter,the following shall apply: 9 It is the intent of the Legislature that efforts be made with n to read: O g I (A) Murder. - SEC. 16. Section 1203.075 of the Penal Code is amended � (B) Robbery,in violation of Section 211. 1203.075. (1) At the expiration of a term of imprisonment of one year and respect to persons who are subject to subparagraph(C)of paragraph(1) one day,or a term of imprisonment imposed pursuant to Section 1170 or of subdivision (a) of Section 290 who are on parole to engage them in (C) Kidnapping,in violation of Section 207,209,or 209.5. (a) Probation Notwithstanding any other provision of law,probation at the expiration of a term reduced pursuant to Section 2931 or 2933, if treatment. D Lewd or lascivious act, shall not be granted to,nor shall the execution or imposition of sentence applicable,the inmate shall be released on parole for a period not exceeding ( ) Kidnapping� SEC. 18. Section 3000.07 is added to the Penal Code,to read: in violation of Section 288. be suspended for,nor shall a finding bringing the defendant within this three years,except that any inmate sentenced for an offense specified in section be stricken pursuant to Section 1385 for, any person who�atitb 3 4 5 11 1 ) O 3000.07. (a) Every inmate who has been convicted for any felony (E) Burglary of-the first degree,as defined in Section 460. paragraph O,O,( e (on( ),( for a period of subdivision c v Section the�' i � ,personally inflicts great bodily injury, as 667.5 shall be released on parole for a period not exceeding five years, violation of a `registerable sex offense"described in subparagraph(A)of � (F) Rape, in violation defined in Section 12022.7,on the person of another in the commission or unless in either case the parole authority for good cause waives parole and paragraph(2)of subdivision(a)of Section 290 or any attempt to commit of Section 261,262,or 264.1. attempted commission of an of the following crimes: any of the above-mentioned offenses and who is committed to prison and P Y g discharges the inmate from the custody of the department. _ (G) Assault with intent to commit rapesrsedemp a specified sexual released on parole pursuant to Section 3000 or 3000.1 shall be monitored (1) Murder. (2) In the case of any inmate sentenced under Section 1168,the period offense,in violation of Section 220. by a global positioning,system for the term of his or her parole,or for the (2) Robbery,in violation of Section 211. of parole shall not exceed five years in the case of an inmate imprisoned for duration or any remaining part thereof,whichever period of time is less. (H) Escape,in violation of Section 4530 or 4532. 3 Kidnapping,in violation of Section 207,209,or 209.5.' any offense other than first or second degree murder for which the inmate O (b) Any inmate released on parole pursuant to this section shall (I) Carjacking,in violation of Section 215. 4 Lewd or lascivious act, has received'a life sentence,and shall not exceed three years in the case of (J) Aggravated mayhem, in O any other inmate,unless in either case the parole authority for good cause be required to pay for the costs associated with the monitoring by a global in violation of Section 288. positioning system.However,the Department of Corrections shall waive any r ***Text of Proposed Laws 1 133 II 132 1 Text of Proposed Laws TEXT OF PROPOSED LAWS * (PROPOSITION 83 CONTINUED) TEXT OF PROPOSED LAWS or all of that payment upon a finding of an inability to pay. The department factors,giving the greatest weight to the protection of the victim and the felony in which the defendant inflicts great bodily injury on any person other (c) Any inmate released on parole pursuant to this section shall be shall consider any remaining amounts the inmate has been ordered to pay safety of the community: than an accomplice that has been charged and 'proved as provided for in required to pay for the costs associated with the monitoring by a global in fines, assessments and,restitution fines,fees,and orders, and shall give (1) The need to protect the life or safety of a victim,the parolee,a Section 12022.53,12022.7,or 12022.9,if the victim or witness has requested positioning system.However, the Department of Corrections shall waive priority to the payment of those items before requiring that the inmate pay witness,or any other person. additional distance in the placement of the inmate on parole,and if the Board any or all of that payment upon a finding of an inability to pay. The for the global positioning monitoring.No inmate shall be denied parole on (2) Public concern that would reduce the chance that the inmate's of Prison Terms or the Department of Corrections finds that there is a need department shall consider any remaining amounts the inmate has been the basis of his or her inability to pay for those monitoring costs. parole would be successfully completed. to protect the life,safety,or well-being of a victim or witness. - ordered to pay iri fines,assessments and restitution fines,fees,and orders, SEC. 19. Section 3001 of the Penal Code is amended to read: 3 The verified existence of a work offer, or an educational or (g) and shall give priority to the payment of those items before requiring that OOLI the inmate pay for the global positioning monitoring. 3001. (a) Notwithstanding any other provision of law, when any vocational training program. ' person referred to in paragraph(1)of subdivision(b)of Section 3000 who SEC.23. Section 12022.75 of the Penal Code-is amended to read: (4) The existence of family in another county with whom the inmate p was not imprisoned for committing a violent felony,as defined in subdivision 12022.75. ry(a)Except as provided in subdivision(b),any person 1 c of Section 667.5,has been released on parole from the state prison,and has maintained strong ties and whose support would increase the chanceand who, for the ur ose of committing a felony, administers b injection, I O P P P P , g Y Y that the inmate's parole would be successfully completed. has been on parole continuously for one year since release from confinement, Notwithstanding any other law,an inmate who is released on parole inhalation,ingestion,or any other means,any controlled substance listed within 30 days, that person shall be discharged from parole, unless the (5) The lack of necessary outpatient treatment programs for parolees for a violation of Section 288 or 288.5 whom the Department of Corrections in Section 11054, 11055, 11056, 11057,or 11058 of the Health and Safety i ant to Section 2960 pursuant treatment treatm puu .receiving e Department of Corrections recommends to the Board of Prison Terms that the receiv and Rehabilitation determines poses a high risk to the public shall not be Code, against the victim's will by means of force; violence, or fear of • 4 person be retained on parole and the board,'for good cause,determines that (c)'The Department of Corrections,in determining an out-of-county placed or reside,for the duration of his or her parole,within one-half mile immediate and unlawful bodily injury to the victim or another person, the person will be retained.Notwithstanding any otherprovision of law,when commitment, shall give priority to the safety of the community and any of any public or private school including any or all of kindergarten and shall,in addition and consecutive to the penalty provided for the felony or any person referred to in paragraph(1)of subdivision(b)of Section 3000 who witnesses and victims. grades 1 to 12,inclusive., attempted felony of which he or she has been convicted,be punished by an was imprisoned for committing a violent felony,as defined in subdivision (d) In making its decision about an inmate who participated in a (lr) Notwithstanding any other law, an inmate who is released on additional term of three years. (c)of Section 667.5,has been released on parole from the state prison for a joint venture program pursuant to Article.1.5(commencing with Section parole for an offense involving stalking shall not be returned to a location (b)(1) Any person who, in the commission or attempted commission period not exceeding three years and has been on parole continuously for two 2717.1)of Chapter 5,the paroling authority shall give serious consideration within 35 miles of the victim's actual residence or place of employment if of any offense specified in paragraph (2), administers any controlled years since release from confinement,or has been released on parole from to releasing him or her to the county whore the joint venture program the victim or witness has requested additional distance in the placement of substance listed in Section 11054, 11055, 11056, 11057, or.11058 of the the state prison for a period not exceeding five years and has been on parole employer is located if that employer states to the paroling authority that he the inmate'on parole,and if the Board of Prison Terms or the Department Health and Safety Code to the victim shall be punished by an additional continuously for three years since release from confinement,the department or she intends to employ the inmate upon release. of Corrections finds that there is a need to protect the life,safety,or well- and consecutive term of imprisonment in the state prison for five years. shall discharge,within 30 days,that person from parole,unless the department (e)(1) The following information,if available,shall be released by the being of the victim. (2) This subdivision shall apply to the following offenses: recommends to the board that the person be retained on parole and the board, Department of Corrections to local law enforcement agencies regarding a fij (h) The authorityshall give,consideration to the equitable O p fp g p O O f O f for good cause,determines that the person will be retained.The board shall g q A Rape, in violation o ara rah 3 or 4 o subdivision a o g P paroled inmate who is released in their jurisdictions: distribution of parolees and the proportion of out-of-county commitments Section 261. • make a written record of its determination and the department shall transmit (A) a copy thereof to the parolee. (B) Sodomy,in violation of subdivision 0)or(i)of Section 286.e decisions.Last,first,and middle name. from a county compared to the number of commitments from that county • • • (b) Notwithstanding any other provision of law, when any person (B Birth date. when making parole) (C) Oral'copulation,in violation of subdivision 09 or(i)of Section (C) Sex,race,height,weight,and hair and eye color. (j) (i) An inmate may be paroled to another state pursuant to any 288a. referred to in paragraph(2)or{3)of subdivision(b)of Section 3000 has been other law. released on parole from the state prison,and has been on parole continuously (D) Date of parole and discharge. (D) Sexual penetration, in violation of subdivision (d) or (e) of (k) (j)(1) Except as provided in paragraph (2), the Department of for three years since release from confinement or sinee extension of parole, (E) Registration status,if the inmate is required to register as a result Corrections shall be the agency primarily responsible for,and shall have Section 289. the board shall discharge,within 30 days,the person from parole, unless of a controlled substance,sex,or arson offense. (E) Any offense specified in subdivision(c)of Section 667.61. the board, for good cause,determines that the person will be retained on control over, the program, resources, and staff implementing the Law g P (F) California Criminal Information Number, FBI number, social SEC. 24.' Section 6600 of the Welfare and Institutions Code is parole.The board shall make a written record of its determination and the Y Enforcement Automated Data System (LEADS) in conformance with P security number,and driver's license number. amended to read: ' department shall transmit a copy thereof to the parolee. subdivision(w (G) County of commitment. (2) Notwithstanding paragraph(1),the Department of Justice shall 6600. As used in this article,the following terms have the following (c) Notwithstanding any otherUprovision of law, when any person H A description of scars,marks,and tattoos on the inmate. meanings: referred to in paragraph (3) of subdivision (b) of Section 3000 has ( ) P be the agency primarily responsible for the proper release of information been released on parole from the state prison, and has been on parole (1) Offense or offenses for which the inmate was convicted that under LEADS that relates to fingerprint'cards. (a)(1) "Sexually violent predator" means a person who has been continuously for six years since release from confinement,the board shall resulted in parole in this instance. SEC.21. Section 3003.5 of the Penal Code is amended to read: convicted of a sexually violent offense againNt two one or more victims discharge, within 30 days, the person from parole, unless the board,for (J) Address,including all of the following information: 3003.5. (a) Notwithstanding any other provision of law, when a and who has a diagnosed mental disorder that makes the person a danger to good cause, determines that the person will be retained on parole. The i Street name and number. Post office box numbers are not person is released on parole after having served a term of imprisonment the health and safety of others in that,it is likely that he or she will engage g p p O P P g P board shall make a written record of its determination and the department acceptable for purposes of this subparagraph. in state prison for any offense for-which registration is required pursuant in sexually violent criminal behavior. shall transmit a copy thereof to the parolee. (ii) City and ZIP Code. to Section 290,that person may not,during the period of parole,reside in (2) For purposes of this subdivision any of the following shall be (d) In the event of a retention on parole,the parolee shall be entitled (iii) Date that the address provided pursuant to this subparagraph any single family dwelling with any other person also required to register considered a conviction for a sexually violent offense: to a review by the parole authority each year thereafter until the maximum was proposed to be effective. pursuant to Section 290,unless those persons are legally related by blood, (A) A prior or current conviction that resulted in a determinate statutory period of parole has expired. marriage,or adoption.For purposes of this section,"single family dwelling" prison sentence for an offense described in subdivision(b). (K) Contact officer and unit, including all of the following shall not include a residential facilitywhich serves six or fewer persons. (d) (e) The amendments to this section made during the 1987-88 information: P (B) A conviction for an offense described in subdivision (b) that Regular Session of the Legislature shall only be applied prospectively (b) Notwithstanding any otherprovision of law,it is unlawful for any was committed prior to July 1,1977,and that resulted in an indeterminate (i) Name and telephone number of each contact officer. erson or whom registration is re wired' ursuant to Section 290 to reside prison sentence. and shall not extend the parole period for any person whose eligibility p r g q p (ii) Contact unit type of each contact officer such as units responsible within 2000 feet o an public or private school, or ark where children for discharge from parole was fixed as of the effective date of those .f ./ Y P p p (C) A prior conviction in another jurisdiction for an offense that amendments. for parole,registration,or county probation. regularly gather. includes all of the elements of an offense described in subdivision(b). L A digitized image of the photograph and at least a single digit SEC.20. Section 3003 of the Penal Code is amended to read: ( ) g g P g P g g (c) Nothing in this section shall prohibit municipal jurisdictions' (D) A conviction for an offense under a predecessor statute that 3003. (a) Except as.otherwise provided in this section,an inmate fingerprint of the parolee. from enacting local ordinances that further restrict the residency of any includes all of the elements of an offense described in subdivision(b). i (M) A geographic coordinate for the parolee's residence location person for whom registration is required pursuant to Section 290. who is released on parole shall be returned to the county that was the last (E) A prior conviction for which the inmate received a grant of legal residence of the inmate prior to his or her incarceration. for use with a Geographical Information System (GIS) or comparable SEC.22. Section 3004 of the Penal Code is amended to read: probation for an offense described in subdivision(b). computer program. 3004. a Notwithstanding an other law,the parole authority may� For purposes of this subdivision,"last legal residence"shall not be () , g Y P Y Y (F) A prior finding of not guilty by reason of insanity for an offense (2) The information required by this subdivision shall come from the require,as a condition of release on parole or reinstatement on parole,or construed to mean the county wherein the inmate committed an offense q P P described in subdivision(b). while confined in a state prison or local jail facility or while confined for statewide parolee database. The information obtained from each source as an intermediate sanction in lieu of return to prison,that an inmate (G) A conviction resulting in a finding that the person was a mentally i treatment in a state hospital. shall be based on the same timeframe. parolee agree in writing to the use of electronic monitoring or supervisi or ng p disordered sex offender. b Notwithstanding subdivision a an inmate may be returned (3) All of the information required by this subdivision shall be devices for the purpose of helping to verify his or her compliance with all O g O, y (H) A prior conviction for an offense described in subdivision(b)for to another county if that would be in the best interests of the public. If Provided utilizing a computer-to-computer transfer in a format usable othei conditions of parole.The devices shall not be used to eavesdrop or which the person was committed to the Department of the Youth Authority the Board of Prison Terms setting the conditions of parole for inmates by a desktop computer system.The transfer of this information shall be record any conversation,except a conversation between the parolee 2nd the pursuant to Sections committed sentenced pursuant to subdivision(b)of Section 1168,as determined by continually available to local law enforcement agencies upon request. agent supervising the parolee which is to be used solely for the purposes 4 The unauthorized release or receipt of the information described of voice identification. (I) A prior conviction for an offense described in subdivision(b)that the parole consideration panel,or the Department of Corrections setting O P resulted in an indeterminate prison sentence. the conditions of parole for inmates'sentenced pursuant to Section 1170, in this subdivision is a violation of Section 11143. (b) Every inmate who has been convicted for any felony violation of 3 decides on a return to another county,it shall place its reasons in writing (f) Notwithstanding any other provision of law, an inmate who is a "registerable sex offense"described in subparagraph(A)of paragraph ( ) Conviction of one or more of the crimes enumerated in this section in the parolee's permanent record and include these reasons in the notice released on parole shall not be returned to a location within 35 miles of the (2)of subdivision(a)of Section 290 or any attempt to commit any of the shall constitute evidence that may support a court or jury determination to the sheriff or chief of police pursuant to Section 3058.6.In making its actual residence of a victim of,or a witness to,a violent felony as defined above-mentioned offenses and who is committed to prison and released on that a person is a sexually violent predator,but shall not be the sole basis decision,the paroling authority shall consider,among others,the following in paragraphs(1)to(7),inclusive,of subdivision(c)of Section 667.5 or a parole pursuant to Section 3000,or 3000.1 shall be monitored by a global for the determination.The existence of any prior convictions may be shown positioning system for life. with documentary evidence.The details underlying the commission of an u ' 1341 Text of.Proposed Laws*** ***Text of Proposed Laws 1 135 TEXT OF PROPOSED LAWS (PROPOSITION 83 CONTINUED) * * * TEXT OF PROPOSED LAWS f' offense that led to a prior conviction, including a predatory relationship amended to read: shall include psychiatrists and licensed psychologists who have a doctoral amended to read: si with the victim,may be shown by documentary evidence,including,but 6601. (a)(1) Whenever the Director of Corrections determines that degree in psychology.The requirements set forth in this section also shall 6605. (a) A person found to be a sexually violent predator and =i not limited to,preliminary hearing transcripts,trial transcripts,probation an individual who is in custody under the jurisdiction of the Department apply to any professionals appointed by the court to evaluate the person for committed to the custody of the State Department of Mental Health shall and sentencing reports,and evaluations by the State Department of Mental of Corrections, and who is either serving a determinate prison sentence purposes of any other proceedings under this article. have a current examination of his or her mental condition made at least Health. Juror's shall be admonished that they may not find a person a or whose parole has been revoked,may be a sexually violent predator,the (h) If the State Department of Mental Health determines that the once every year.The annual report shall include consideration of whether 'j sexually violent predator based on prior offenses absent relevant evidence director shall,at least six months prior to that individual's scheduled date person is a sexually violent predator as defined in this article,the Director the committed person'currently. meets the definition of a sexually violent of a currently diagnosed mental disorder that makes the person a danger to for release from prison,refer the person for evaluation in accordance with of Mental Health shall forward a request for a petition to be filed for predator and whether conditional release to a less restrictive alternative the health and safety of others in that it is likely that he or she will engage this section.However,if the inmate was received by the department with commitment under this article to the county designated in subdivision(i). or an unconditional release is in the best interest of the person and •, in sexually violent criminal behavior. less than nine months of his or her sentence to serve,or if the inmate's Copies of the evaluation reports and any other supporting documents Shall conditions can be imposed that would adequately protect the community. (4) The provisions of this section shall apply to any person against release date is modified by judicial or administrative action,the director be made available to the attorney designated by the county pursuant The Department of Mental Health shall file this periodic report with the whom proceedings were initiated for commitment as a sexually violent may refer the person for evaluation in accordance with this section at a date to subdivision (i) who may file a petition for commitment in the court that committed the person under this article. The report shall be predator on or after January 1, 1996. that is less than six months prior to the inmate's scheduled release date. superior court. in the form of a declaration and shall be prepared by a professionally (b) "Sexually violent offense" means the following acts when (2) A petition may be filed under this section if the individual (i) if, the county's designated counsel concurs with the qualified person.A copy of the report shall be served on the prosecuting h committed by force,violence,duress,menace,or fear of immediate and was in custody pursuant to his or her determinate prison term, parole recommendation,a petition for commitment shall be filed in the superior agency involved in the initial commitment and upon the committed person. unlawful bodily injury on the victim or another person, or threatening revocation term,or a hold placed pursuant to Section 6601.3,at the time court of the county in which the person was convicted of the offense for The.person may retain,or if he or she is indigent and so requests,the court to retaliate in the future against the victim or any other person, and that the petition is filed.A petition shall not be dismissed on the basis of a later which he or she was committed to the jurisdiction of the Department may appoint,a qualified expert or professional person to examine him or are committed on, before, or after the effective date of this article and judicial or administrative determination that the individual's custody was of Corrections. The petition shall be filed, and the proceedings shall be her,and the expert or professional person shall have access to all records result in a conviction or a finding of not guilty by reason of insanity,as unlawful,if the unlawful custody was the result of a good faith.mistake handled,by either the district attorney or the county counsel of that county. concerning the person. provided defined in subdivision(a):a felony violation of of fact or law.This paragraph shall apply to any petition filed on or after The county board of supervisors shall designate either the district attorney (b) The direetoi shall piovide the eonimitted person with an annual stibdivision(a)e€Section 261, January 1, 1996. or the county counsel to assume responsibility for proceedings under this wtitten notiee of his or her tight to petition the couit for.eonditio 262,Section 264.1,269, 286, 'on 288,288a, (b) The person shall be screened by the Department of Corrections article. 288.5, or 289 of the Penal Code,or sadamq ar and the Board of Prison Terms based on whether the person has committed --- the and waiver ftmn L p (j) The time limits set forth in this section shall not apply during the oral eopulatiort irt violation of Seetion 286 or 288a of the Penal Code any a sexually violent predatory'offense and on a review of the person's social, first year that this article is operative. the.at I tnu.al.7port. If the person does not affirinatively waive his or her felony violation of Section 207,209,or 220 of the Penal Code,committed criminal, and institutional history. This screening shall be•conducted (k) If the person is otherwise subject to parole,a finding or placement with the intent to commit a violation of Section 261,262,264.1,286,288, in accordance with a structured screening instrument developed and made pursuant to this article shall net toll,diseharge,or otheL wise affeet eatise liew ing to deteL Mine whether Faets exist that warrant a hearing on 288a,or 289 of the Penal Code. updated by the State Department of Mental Health in consultation with the the term of parole pursuant to Article 1 (commencing with Section 3000) whether the pet son's eondition has so changed that he oi site would not be = (c) "Diagnosed mental disorder"includes a congenital or acquired Department of Corrections.If as a result of this screening it is determined of Chapter 8 of Title 1 of Part 3 of the Penal Code. a danger to the health and iafety of others if discharged.The�fnnnlit condition affecting the emotional or volitional capacity that predisposes the that the person is likely to be a sexually violent predator,the Department (l) Pursuant to subdivision(d),the attorney designated by the county person to the commission of criminal sexual acts in a degree constituting of Corrections shall refer the person to the State Department of Mental .If the Department of Mental Health pursuant to subdivision i shall notify the State Department of Mental () Y P P either: 1 the person's condition has so changed that the theperson menace h h . . �� P g pe so a e ace to a health and safety of others. Health for a full evaluation of whether the person meets the criteria in determines that e Health of its decision regarding the filing of a petition for commitment person no longer meets the definition o a sexually violent predator,or 2 i (d) "Danger to the health and safety of others"does not require proof Section 6600. P g � r Y P �) within 15 days of making that decision. conditional release to a less restrictive alternative is in the best interest of a recent overt act while the offender is in custody. (c) The State Department of Mental Health shall evaluate the person SEC. 27. Section 6604 of the Welfare and Institutions Code is of the person and conditions can be imposed that adequately protect the (e) "Predatory"means an act is directed toward a stranger,a person in accordance with a standardized assessment protocol, developed and amended to read: community,the director shall authorize the person to petition the court for of casual acquaintance with whom no substantial relationship exists,or an updated by'the State Department of Mental Health,to determine whether individual with whom a relationship has been established or promoted for the person is a sexually violent predator as defined in this article. The 6604. Thecourtorjuryshalldeterminewhether,beyondareasonable conditional release to a less restrictive alternative orfor an unconditional the primary purpose of victimization. standardized assessment protocol shall require assessment of diagnosable doubt,the person is a sexually violent predator.If the court or jury is not discharge. The petition shall be filed with the court and served upon the (f) "Recent overt act" means any criminal act that manifests a mental disorders''as well as various factors known to be associated with the satisfied beyond a reasonable doubt that the person is a sexually violent prosecuting agency responsible for the initial commitment. The court, likelihood that the actor may engage in sexually violent predatory criminal risk of reoffense among sex offenders.Risk factors to be considered shall predator,the court shall direct that the person be released at the conclusion upon receipt of the petition for conditional release to a less restrictive behavior. include criminal and psychosexual history,type,degree,and duration of of the term for which he or she was initially sentenced,or that the person alternative or unconditional discharge,shalkorder a show cause hearing sexual deviance,and severity of mental disorder. be unconditionally released at the end of parole,whichever is applicable.If at which the court can consider the petition and any accompanying (g) Notwithstanding any other.provision of law and for purposes of (d) Pursuant to subdivision(c),the person shall be evaluated by two the court or jury determines that the person is a sexually violent predator, documentation provided by the medical director,the prosecuting attorney this section,no a prior juvenile adjudication of a sexually the person shall be committed for two yearsan indeterminate term to or the committed person. violent offense may constitute a prior conviction for which the person Practicing psychiatrists or psychologists,or one practicing psychiatrist and the custody.of the State De of Mental Health forappropriate one practicing psychologist designated by the Director of Mental Health Department (c) If the court at the show cause hearing determines that probable received a determinate term if all of the following applies ,. .apply: treatment and confinement in a secure facility designated by the Director cause exists to believe that the committed person's diagnosed mental If both evaluators concur that the person has a diagnosed,mental disorder (1) The juvenile was 16 years of age or older at the time he or she so that he or she is likely to engage in acts of sexual violence without of Mental Health, disorder has so changed that he or she is not a danger to the health and committed the prior offense. safety of others and is not likely to engage in sexually violent criminal appropriate treatment and custody, the Director of Mental Health shall behavior if discharged,then the court shall set a hearing on the issue. (2) The prior offense i a sexually violent offense as specified in forward a request for a petition for commitment under Section 6602 to the g g subdivision(b).Notwithstanding county designated in subdivision(i).Copies of the evaluation reports and (d) At the hearing,the committed person shall have the right to be Shall COLIStitUte a sexually viclent offense fbi purposes any other supporting documents shall be made available to the attorney subdivision(e)of Seetion present and shall be entitled to the benefit of all constitutional protections of this___bd._..___ic�_ designated by the county pursuant to subdivision(i)who may file a petition not count toward the two-year term of miless the PeL son is that were afforded to him or her at the initial commitment proceeding.The " (3)Thejuvenile was adjudged a ward of the juvenile court within the for commitment. in whi attorney designated by the county pursuant to subdivision(i)of Section meaning of Section 602 because of the person's commission of the offense e If one of the professionals performing the evaluation pursuant to case the tirne in a loeked f�eility shall eoutit towaid the two-year term(4 6601 shall represent the state and shall have the right to demand a jury trial O P P g P eommitment.The facility shall be on the grounds of an institution and to have the committed person evaluated b experts chosen b the state. giving rise to the juvenile court adjudication. subdivision d does not concur that the person meets the criteria specified P Y P Y 1 O P P under the jurisdiction of the Department of Corrections. The committed person also shall have the right to demand a jury trial and (4) The juvenile was committed to the Department of the Youth in subdivision(d), but the other professional concludes that the person SEC. 28. Section 6604.1 of the Welfare and Institutions Code is to have experts evaluate him or her on his or her behalf.The court shall Authority for the sexually violent offense. meets those criteria,the Director of Mental Health shall arrange for further amended to read: appoint an expert if the person is indigent and requests an appointment. (h) A minor adjudged a ward of the court for commission of an examination of the person by two independent professionals selected in offense that is defined as a sexually violent offense shall be entitled to accordance with subdivision(g). 6604.1. (a) The 'two-yea r indeterminate term of commitment The burden of proof at the hearing shall be on the state to prove beyond a specific treatment as a sexual offender.The failure of a minor to receive that (f) If an examination by independent professionals pursuant to provided for in Section 6604 shall commence on the date upon which the reasonable doubt that the committed person's diagnosed mental disorder court issues the initial order of commitment pursuant to that section.The remains such that he or she is a danger to the health and safety of others and treatment shall not constitute a defense or bar to a determination that any subdivision(e)is conducted,a petition to request commitment under thisinitial two-yeat term shall rio is likelyto engage in sexuallyviolent criminal behavior if discharged. person is a sexually violent predator within the meaning of this article. article shall only be filed if both independent professionals who evaluate thefiteility Pi i0i tofl, e If the ourt or jury rules against the committed person at the SEC. 25. Section 6600.1 of the Welfare and Institutions Code is person pursuant to subdivision(e)concur that the person meets the criteria ( ) J Y g P for commitments specified in subdivision d The professionals selected t"terit sliall be for two yeaIs commencing hearing conducted pursuant to subdivision(d),the term of commitment amended to read: P O P of the person shall run for a an indeterminate period of two years from the 6600.1. (a) If the victim of an underlying offense that is specified to evaluate the person pursuant a subdivision(g)shall inform the person b The person shall be evaluated b two practicing date of this ruling.If the court or jury rules for the committed person,he or in subdivision b of Section 6600 is a child under the age of 14 and the that the purpose of their examination is not treatment but to determine if yc P Y P g g J Y O g the person meets certain criteria to be involuntarily committed pursuant or psychiatrists, or by one practicing psychologist and one practicing she shall be unconditionally released and unconditionally discharged. offending aet ot aets involved substantial sexual eon ,the offense shall designated b the State Department of Mental Health. The constitute a"sexually violent offensd"for purposes of Section 6600. to this article.It is not required that the person appreciate or understand(b) "Substantial sexual conduct"means peneft ation of the vagina Or psychiatrist, g Y P (f) In the event that the State Department of Mental Health has reason Y P P that information. provisions of subdivisions(c)to(i),inclusive,of Section 6601 shall apply to believe that a person committed to it as a sexually violent predator is (g) Any independent professional who is designated by the Director to evaluations performed for purposes of extended commitments. The no longer a sexually violent predator,it shall seek judicial review of the rights,requirements,and procedures set forth in Section 6603 shall apply person's commitment pursuant to the procedures set forth in Section 7250 any fbreign objeet,oral of Corrections or the Director of Mental Health for purposes of this section to exiendca all commitment proceedings. in the superior court from which the commitment was made.If the superior the � 'shall not be a state government employee, shall have at least five years of experience in the diagnosis and treatment of mental disorders, and SEC. 29. Section 6605 of the Welfare and Institutions Code is court determines that the person is no longer a sexually violent predator,he � SEC. 26. Section 6601 of the Welfare and Institutions Code is � j ` 136 1 Text of Proposed Laws Text of Proposed Laws 1 137 i TEXT OF PROPOSED LAWS (PROPOSITION 84 CONTINUED) * TEXT OF PROPOSED LAWS I or she shall be unconditionally released and unconditionally discharged. Jh) Ifthe court denies the petition to place the person in an appropriate necessary and in the public interest to do all of the following.• qualified to do business in California, and qualified under Section SEC. 30. Section 6608 of the'Welfare and Institutions Code is forensic conditional release program or if the petition for unconditional (a) Ensure that safe drinking water is available to all Californians by: 501(c)(3)of the Internal Revenue Code. amended to read: discharge is denied,the person may not file a new application until one (1) Providing for emergency assistance to communities with (1) "Preservation"means rehabilitation, stabilization, restoration, 6608. (a) Nothing in this article shall prohibit the person who year has elapsed from the date of the denial. contaminated sources of drinking water. development,and reconstruction,or any combination cf those activities. has been committed as a sexually violent predator from petitioning the (i) In any hearing authorized by this section,the petitioner shall have (2) Assisting small communities in making the improvements needed (m) "Protection"means those actions necessary to prevent harm court for conditional release and subsequen or an unconditional discharge the burden of proof by a preponderance of the evidence.. in their water systems to clean up and protect their drinking water from or damage to persons, property or natural resources or those actions without the recommendation or concurrence of the Director of Mental (j) If the petition for conditional release is not made by the director contamination. necessary to allow the continued use and enjoyment cfproperty or natural Health. If a person has previously filed a petition for conditional release of the treatment facility to which the person is committed,no action on (3), Providing grants and loans for safe drinking water and water resources and includes acquisition,development,restoration,preservation without the concurrence of the director and the court determined,either the petition shall be taken by the court without first obtaining the written pollution prevention projects. and interpretation. upon review of the petition or following a hearing,that the petition was recommendation of the director of the treatment facility. (4) Protecting the water quality of the Sacramento-San Joaquin (n) "Restoration" means the improvement of physical structures frivolous or that the committed person's condition had not so changed that (k) Time spent in a conditional release program pursuant to this or facilities and, in the case of natural systems and landscape features he or she would not be a danger to others in that it is not like] that he Delta,a key source of drinking water for 23 million Californians. l g Y section shall not count toward the term of commitment under this article includes, but is not limited to, projects for the control of erosion, the or she will engage in sexually violent criminal behavior if placed under unless the person is confined in a locked facility by the conditional release (5) Assisting each region ofthe state in improving local water supply_ control and elimination oj'exotic species,prescribed burning,fuel hazard supervision and treatment in the community, then the court shall den reliability and water quality. P Y Y program, in which case the time spent in a locked facility shall count reduction,fencing out threats to existing or restored natural resources, the subsequent petition unless it contains facts upon which a court could toward the term of commitment. (6) Resolving water-related conflicts,improving local and regional road elimination, and other plant and wildlife habitat improvement to find that the condition of the committed person had so changed that a SEC.31. Intent Clause water self-sufficiency and reducing reliance on imported water. increase the natural system value of the property. Restoration projects hearing was warranted.Upon receipt of a first or subsequent petition from (b) Protect the public from catastrophic floods by identifying and shall include the planning,monitoring and reporting necessary to ensure thisti i f CaliforniaState St o n enacting f th l P f th t t o e People o e a in tent nen a committed person without the concurrence of the director,the court shall It is mapping the areas most at risk,inspecting and repairing levees and,flood successful implementation of the project objectives. measure to strengthen and improve the laws that punish and control sexual endeavor whenever possible to review the petition and determine if it is control facilities,and reducing the long-term costs of flood management, (o) "Secretary"means the Secretary of the Resources Agency. offenders.It is also the intent of the People of the State of California that based upon Frivolous grounds and,if so,shall deny the petition without a reducing future flood risk and maximizing public benefits by planning, if any provision in this act conflicts with any other provision of law that (p) "State Board"means the State Water Resources Control Board. hearing.The person petitioning for conditional release and unconditional. designing and implementing multi-objective flood corridor projects. discharge under this subdivision shall be entitled to assistance of counsel. provides for a greater penalty or longer period of imprisonment the latter c Protect the rivers,lakes and streams o the state from pollution, 75009. The proceeds of bonds issued and sold pursuant to this provision shall apply. () f f . division shall be deposited in the Safe Drinking Water, Water Quality (b) The court shall give notice of the hearing date to the.attorney loss of water quality,and destruction offish and wildlife habitat. designated in subdivision i of Section 6601, the retained or appointed SEC.32. Severability Clause and Supply, Flood Control, River and Coastal Protection Fund of 2006, g O pp (d) Protect the beaches, bays and coastal waters of the state for which is hereby created. Except as specifically provided in this division attorneyfor the committed person,and the Director of Mental Health at If any provision of this act,or part thereof,is for any reason held to be p future generations: the money shall be available for appropriation by the Legislature, in the least 15 court days before the hearing date. invalid or unconstitutional,the remaining'provisions shall not be affected, but shall remain in full force and effect,and to this end the provisions of (e) Revitalizing our communities and making them more sustainable manner and for the purposes set,forth in this division in accordance with (c) No hearing upon the petition shall be held until the person who this act are severable. and livable by investing in sound land use planning,local parks and urban the following schedule: • is committed has been under commitment for confinement and care in a greening. (a) The sum of one billion five hundred twenty five million dollars facility designated by the Director of Mental Health for not less than one SEC.33. Amendment Clause year from the date of the order of commitment. The provisions of this act shall not be amended by the Legislature 75003.5. The people of California further find and declare that the ($1,525,000,000)for safe drinking water, water quality and other water. except b a statute of this in each house b roende vote entered in the growth in population of the state and the impacts of climate change pose projects in accordance with the provisions of Chapter 2. (d) The court shall hold a hearing to determine whether the person P Y P Y committed would be a danger to the health and safety of others in that it journal,two-thirds of the membership of each house concurring,or by a planningcant and dthr challenges.improvements inlanduseanges must be dwate management gh careful co The sum of eight hundred million dollars ($ofChapter 3. for � statute that becomes effective only when approved b the voters.However, planningand through improvements inland use and watermanagementchat flood control projects in accordance with the provisions of Chapter 3. is likely that he or she will engage in sexually violent criminal behavior y pp Y both reduce contributions to global warming and improve the adaptability due to his or her diagnosed mental disorder if under supervision and the Legislature may amend the provisions of this act to expand the scope (c) The sum ofsixty five million dollars($65,000,000)for statewide Of our water and flood control systems. Improvements include better treatment in the community. If the court at the hearing determines that of their application or to.increase the punishments or penalties provided integration of water supply, water quality,flood control and ecosystem water management in accordance with the provisions of Chapter 4. the committed person would not be a danger to others due to his or her herein by a statute passed by majority vote of each house thereof. protection,as well greater water use efficiency and conservation to reduce (d) The sum of nine hundred twenty eight million dollars diagnosed mental disorder while under supervision and treatment in the energy consumption. ($928,000,000) for the protection of rivers, lakes and streams in � community, the court shall order the committed person placed with an �7 p � accordance with the provisions of Chapter 5. PROPOSITION 04 75004. It is the intent of the people that investment of public funds appropriate forensic conditional release program operated by the state for (e) The sum of four hundred fifty million dollars ($450,000,000) one year.A substantial portion of the state-operated forensic conditional This initiative measure is submitted to the people in accordance with pursuant to this division should result in public benefits. y p p P P for forest and wildlife conservation in accordance with the provisions of release program shall include outpatient supervision and treatment. The the provisions of Article II,Section 8,of the California Constitution. 75005. As used in this division, the following terms have the p g P p P Chapter 6. court shall retain jurisdiction of the person throughout the course of the This initiative measure adds sections to the Public Resources Code; following meanings: J P g (f) The sum of five hundred forty million dollars ($540,000,000) program.At the end of one year,the court shall hold a hearing to determine therefore,new provisions'proposed to be added are printed in italic type to (a) `Acquisition"means the acquisition ofa fee interest or any other for the protection of beaches,bays,and coastal waters and watersheds in if the person should be unconditional) released from commitment on the indicate that the are new. interest in real property including easements, leases and development P Y Y accordance with the provisions of Chapter 7. basis that, by reason of a diagnosed mental disorder, he or she is not a rights.danger to the health and safety of others in that it is not likely that he or she PROPOSED LAW (b) `Board"means the Wildlife Conservation Board. (g) The sumo fve hundred million dollars($SOQ000,000)for state parks and nature education facilities in accordance with Chapter 8. will engage in sexually violent criminal behavior.The court shall not make (c) "California Water Plan" means the California Water Plan (h) The sum of five hundred eighty million dollars ($580,000,000) this determination until the person has completed at least one year in the SECTION 1. Division 43 is added to the Public Resources Code, Update Bulletin 160-05 and subsequent revisions and amendments. for sustainable communities and climate change reduction projects in state-operated forensic conditional release program.The court shall notify to read: (d) "Delta"means the Sacramento-San Joaquin River Delta. accordance with Chapter 9. the Director of Mental Health of the hearing date. (e) Before placing a committed person in a state-operated forensic DIVISION 43. THE SAFE DRINKING WATER, WATER QUALITY (e) "Department"means the Department of Water Resources. conditional release program,the community program director designated AND SUPPLY,FLOOD CONTROL,RIVER AND COASTAL 0) "Development" includes, but is not limited to the physical CHAPTER 2. SAFE DRINKING WATER AND WATER Y p 1 b the State Department of Mental Health shall submit a written improvement of real property including the construction of facilities or QUALITY PROJECTS it recommendation to the court stating which forensic conditional 'release PROTECTION BOND ACT OF 2006 structures. 75020. This chapter is intended to provide the funds necessary to i program is most appropriate for supervising and treating the committed (g) `Disadvantaged community"means a community with a median address the most critical water needs of the state including the provision t o 1 person. If the court does not accept the community program director's CHAPTER 1. GENERAL PROVISIONS - household income less than 80% of the statewide average. "Severely safe drinking water to all Californians,the protection ofwater quality and recommendation, the court shall specify the reason or reasons for its disadvantaged community"means a community with a median household order on the record. The procedures described in Sections 1605 to 1610, 75001. This Division shall be known and may be cited as the Safe income less than 60%of the statewide average. the environment,and the improvement ofwater supply reliability. inclusive,of the Penal Code shall apply to the person laced in the forensic Drinking Water, Water Quality and Supply, Flood Control, River and 75021. (a) The sum of ten million dollars ($10,000,000) shall Pp Y p p (h) "Fund" means the Safe Drinking Water, Water Quality and Coastal Protection Bond Act of 2006. be available to the Department of health Services for grants and direct conditional release program. Supply,Flood Control,River and Coastal Protection Fund of 2006. 75002. ThepeopleofCaliforniafindanddeclarethatprotectingthe expenditures to fund emergency and urgent actions to ensure that safe (f) If the court determines that the person should be transferred to state's drinking water and water resources is vital to the public health,the (i) "Interpretation"includes;but is not limited to,a visitor serving drinking water supplies are available to all Californians.Eligible projects a state-operated forensic conditional release program, the community state's economy,and the environment. amenity that educates and communicates the significance and value of include,but are not limited to,the following: program director, or his or her designee, shall make the necessary natural, historical, and cultural resources in a way that increases the 1 Providing alternate watersu supplies including bottled water where placement arran ements and,within 21 days after receiving notice of the 75002.5. The people of California further find and declare that the O g PP g p g y g understanding and enjoyment of these resources and that may utilize , court's finding,the person shall be placed in the community in accordance state's waters are vulnerable to contamination by dangerous bacteria, . the expertise of a naturalist or other specialist skilled at educational necessary to protect public health. with the treatment and supervision plan unless good cause for not doing'so polluted runoff, toxic chemicals, damage from catastrophic floods and interpretation. (2) Improvements in existing water systems necessary to prevent is presented to the court. the demands of a growing population. Therefore,actions must be taken to (j) "Local conservation corps" means a program operated by a cgntamination or provide other sources of safe drinking water including (g) If the court rules against the committed person at the trial for ensure safe drinking water and a reliable supply of water for farms,cities public agency or nonprofit organization that meets the requirements of replacement wells. unconditional release from commitment,the court may place the committed and businesses, as well as to protect California's rivers, lakes, streams,beaches,bays and coastal waters,for this and future g Section 14406. (3) Establishing connections to an adjacent water system. person on outpatient status in accordance with the procedures described in generations. (k) "Nonprofit organization" means any nonprofit corporation (4) Design, purchase, installation and initial operation costs for Title 15(commencing with Section 1600)of Part 2 of the Penal Code. 75003. The people of California further find and declare that it is water treatment equipment and systems. i 1381 Text.of Proposed Laws*** ***Text of Proposed Laws 1 139 TEXT OF PROPOSED LAWS * (PROPOSITION 84 CONTINUED) * * * TEXT OF PROPOSED LAWS (b) Grants and expenditures shall not exceed$250,000 per project. (8) Planning and implementation of multipurposeflood management shall be available to the department for grants to implement Delta water appropriated to the department for the purposes of those sections. (c) Direct expenditures for the purposes of this section shall be programs.' quality improvement projects that protect drinking water supplies. The 75032.5. The sum of forty million dollars ($40,000,000) shall be exempt from contracting and procurement requirements to the extent (9) Watershed protection and management. department shall require a cost share from local agencies. Eligible available to the department for Flood Protection Corridor projects that necessary to take immediate action to protect public health and safety. projects are: are consistent with Water Code Section 79037. I Y P P f y. (10) Drinking water treatment and distribution. (a) Projects that reduce or eliminate discharges of-salt, dissolved 75033. The sum of two hundred seventy five million dollars II 75022. Thesum ofone It undredeighty million dollars($180,000,000) (11) Ecosystem andfisheries restoration andprotection. organic carbon, pesticides pathogens and other pollutants to the San shall be available to the Department of Health Services for grants for g P P g P (roject in the shall be available to the department for flood control (b) The Department of Water Resources shall give preference to Joaquin River.Not less than forty million($40,000,000)shall be available projects in the Delta designed to increase the department's ability to small community drinking water system infrastructure improvements that satisfy the following criteria: to implement projects to reduce or eliminate dischar es o subsur ace and related actions to meet safe drinking water standards.Priority shall proposals .fY f g P P J g f f respond to levee breaches and to reduce the potential.for levee failures. i be given to projects that address chemical and nitrate contaminants, (1) Proposals that effectively integrate water managementprograms agricultural drain water from the west side of the San Joaquin Valley for The funds provided by this section shall be available for the following other health hazards and by whether the community is disadvantaged andprojects within a hydrologic region identified in the California Water the purpose of improving water quality in the San Joaquin River and the purposes: or severely disadvantaged.Special consideration shall be given to small Plan;the Regional Water Quality Control Board region or subdivision or Delta. (a) Projects to improve emergency response preparedness. communities with limited financial resources.Eligible recipients include other region or sub-region specifically identified by the department. (b) Projects that reduce'or eliminate discharges of bromide, (b) Local assistance under the delta levee maintenance subventions public agencies and incorporated mutual water'companies that serve (2) Proposals that effectively integrate water management with land dissolved organic carbon,salt,pesticides and pathogens from discharges program under Part 9(commencing with Section 12980)of Division 6 of g P f Y use lanhin to the Sacramento River. disadvantaged communities. The Department o Health Services may P g• the Water Code. make grants for the purpose of financing feasibility studies and to meet (3) Proposals that effectively resolve significant water-related (c) Projects at Franks Tract and other locations in the Delta that (c) Special flood protection projects under Chapter 2(commencing the eligibility re uirements or a construction rant. Construction rants conflicts within or between regions. will reduce salinity or other pollutants at agricultural and drinking water with Section 12310 o Part 4.8 o Division 6 o the Water Code,including g Y 9 f g g fl• g ) f f f g shall be limited to$5,000,000 per project and not more than twent ve intakes. or the acquisition, reservation,protection and restoration o P P J twenty five (4) Proposals that contribute to the attainment of one or more of the projects f q P P f percent of a grant may be awarded in advance of actual expenditures. The objectives of the CALFED Bay-Delta Program. (d) Projects identified in the June 2005 Delta Region Drinking Water Delta lands for the purpose offlood control and to meet multiple objectives Department of Health Services may expend up to$5,000,000 of the funds (5) Proposals that address statewide priorities. Quality Management Plan, with a priority for design and construction of such as drinking water quality ecosystem restoration and water supply allocated in this section for technical assistance to eligible communities. the relocation of drinking water intake facilities for in-delta water users. reliability. (6) Proposals that address critical water supply or water quality 4 75023. For the purpose of providing the state share needed to 75029.5. The sum of fifteen million dollars($I5,000,000)shall be (d) All projects shall be subject to the provisions of Water Code needs for disadvantaged communities within the region. leverage federal funds.to assist communities in providing safe drinking (c) Not more than 5/0 of the funds provided by this section may be available to the state board for grants to public agencies and non-profit Section 79050. water, the sum of fifty million dollars ($50,000,000) shall be available organizations for projects that reduce the discharge of pollutants from 75034. The sum ofone h undredeighty million dollars($180,000,000) for deposit into the Safe Drinking Water State Revolving Fund(Section used for grants or direct expenditures for the development, updating or improvement agricultural operations into surface waters of the state. vement of integrated regional water management plans. shall be available to the department for the purposes of funding the 116760.30 of the Health and Safety Code). (d) The department shall coordinate the provisions of this section state's share of the nonfederal costs offlood control and flood prevention 75024. For the purpose of providing the state share needed to CHAPTER 3. FLOOD CONTROL projects for which assurances required by the federal government have leveragefederal funds to assist communities in making those infrastructure with the program provided in Chapter 8 ofDivision 26.5 of the Water Code implement this section using existing Integrated Regional Water been provided by a local agency and which have been authorized under and may investments necessary to prevent pollution of drinking water sources,the 75030. This chapter is intended to'provide the funding needed the State Water Resources Law of 1945 (Chapter I (commencing with sum of eighty million dollars($80,000,000)shall be available for deposit Management Guidelines. Ito address short term(food control needs such as levee inspection and Section 12570)and Chapter 2(commencing with Section 12639)of Part 6 into the State.Water Pollution Control Revolving Fund Section 13477 o 75027. (a) Thefundingprovided in Section 75026 shall be allocated evaluation, flood plain mapping and improving the effectiveness o � g ( f � P PP g P g ff f ofDivision 6 of the Water Code),the Flood Control Law of 1946(Chapter the Water Code). to each hydrologic region as identified in the California Water Plan and emergency response, and providing funding or critical immediate flood g Y P P g f g f .� 3 (commencing with Section 12800)of Part 6 of Division 6 of the Water • 75025. The sum of sixty million dollars ($60,600,000) shall be listed below. For the South Coast Region, the department shall establish control needs throughout the state.it is also intended toprovide aframework Code),and the California Watershed Protection and Flood Prevention Law • three sub-regions that reflect the San Diego county watersheds,the Santa to support long term strategies that will require the establishment o more available to the Department of Health Services for the purpose of loans PP g g 9 f (Chapter 4(commencing.vyith Section 12850)of Part 6 of Division 6 of the and grantsforprojectsto prevent or reduce contamination ofgroundwater Ana River watershed, and the Los Angeles—Ventura County watersheds effective levee maintenance programs, better floodplairi management Water Code), including the credits and loans to local agencies pursuant respectively, and allocate funds to those sub-regions. The North and and more balanced allocation of liability and responsibility between the• to Sections 12585.3 and 12585.4,subdivision d o Section 12585.5, and that serves as a source of drinking water. The Department of Health O .f South Lahontan regions shall be treated as one region for the purpose federal,state and local governments.Services shall require repayment for costs that are subsequently recovered f g Sections 12866.3 and 12866.4 ofthe Water Code,and to implement Chapter from parties responsible for the contamination.The Legislature may enact of allocating funds, but the department may require separate regional 75031. The sum' of thirty million dollars ($30,000,000) shall 3.5(commencing with Section 12840)of Part 6 of Division 6 of the Water to thevid r d F l pans.Funds provided in Section 75026 shall be allocated according legislation necessary to implement this section. be available to the department for the purposes of floodplain mapping, Code.Projects eligible for funding pursuant to this section shall comply following schedule: assistinglocal land-use planning,and to avoid or reduce uture ood risks with the requirements o AB 1147 Statutes o 00,Chapter 1071 75026. (a) The sum of one billion dollars ($I,OOg000,000)shall 1 North Coast $37,000,000 P g f fl q f ( f P ) be available to the department for grants for projects that assist local O and damages.Eligible projects include,but are not limited to: public agencies io meet the long term water needs of the state including the (2) San Francisco Bay $138,000,000 (a) Mapping floodplains. CHAPTER 4. STATEWIDE WATER PLANNING AND DESIGN delivery of safe drinking water and the protection of water quality and the (3) Central Coast $52,000,000 (b) Mapping rural areas with potential for urbanization. 75041. The sum ofsixty five million dollars($65,000,000)shall be environment. Eligible projects must implement integrated regional water (4) Los Angeles sub-region $215,000,000 (c) Mapping and identification o ood risk in high density urban management plans that meet the requirements of this section. Integrated PP gofflood g Y available to the department for planning and feasibility studies related (5) Santa Ana sub-region $114,000,000 areas. to the existing and potential future needs for California's water supply, regional water management plans shall identify and address the major water related objectives and conflicts within the region, consider all of (6) San Diego sub-region $91,000,000 (d) Mappingflood hazard areas. conveyance and flood control systems. The studies shall be designed to the resource management strategies identified in the California Water (7) Sacramento River $73,000,000 (e) Updating outdated floodplain maps. promote integrated, multi-benefit approaches that maximize the public Plan, and use an integrated, multi-benefit approach to project selection (8) San Joaquin River $57,000,000 (f) Mapping of riverine floodplains,alluvial fans,and coastal flood benefits of the overall system including protection of the public from and design. Plans shall include performance measures and monitoring hazard areas. floods,water supply reliability,water quality,andfish,wildlife and habitat g P f g (9) Tulare/Kern(Tulare Lake) $60,000,000 protection and restoration.Projects to be funded include: to document progress toward meeting plan objectives.Projects that may 10 North/South Lahontan $27,000,000 (g) Collecting topographic and hydrographic survey data. be funded pursuant to this section must be consistent with an adopted ( ) 75032. The sum o two hundred seventy five million dollars (a) Evaluation of climate change impacts on the state's water integrated regional water•management plan or its functional equivalent (11) Colorado River Basin $36,000,000 f Y fi flood control systems and the development of system redesign !' Inter-re ional/Unallocated $100,000,000 ($275,OOQ000)shall be available to the department for the following flood supply and alternatives to improve adaptability and public benefits. as defined in the department's Integrated Regional Water Management (12) g control projects: Guidelines,must provide multiple benefits,and must include one or more (b) The interregional and unallocated funds provided in subdivision (b) Surface water storage planning and feasibility studies pursuant of the following project elements: (a) may be expended directly or granted by the department to address (a) The inspection and evaluation of the integrity and capability to the CALFED Bay-Delta Program. of existing flood control project facilities and the development of an (1) Water supply reliability, water conservation and water use multi-regional needs or issues ofstatewide significance. economically viable flood control rehabilitation plan. (c) Modeling and feasibility studies to evaluate the potential for efficiency. 75028. (a) The department shall allocate grants on a competitive improving flood protection and water supply through coordinating (b) Improvement, construction, modification, and relocation of (2) Storm water capture, storage, clean-up, treatment, and basis within each identified hydrologic region or sub-region pursuant to groundwater storage and reservoir operations. Section 75027. The department may establish standards and procedures flood control levees, weirs, or bypasses including repair of critical bank management. � P Y P and levee erosion. (d) Other planning and feasibility studies necessary to improve the (3) Removal of invasive non-native species, the creation and .for the development and approval of local project selection processes integration offlood control and water supply systems. enhancement of wetlands,and the acquisition,protection,and restoration within hydrologic regions and sub-regions identified in Section 75027. (c) Projects to improve the department's emergency response of open space and watershed lands. The department shall defer to approved local ro ect selection,and review capability. P f PP P l CHAPTER 5. PROTECTION OF RIVERS, LAKES AND STREAMS (4) Non-point source pollution reduction, management and Projects only for consistency with the purposes of Section 75026. (d) Environmental mitigation and infrastructure relocation costs (b) If a hydrologic region or sub-region identified in Section 75027 related to projects under this section. 75050. The sum of nine hundred twenty eight million dollars monitoring. does not have any adopted plan that meets the requirements of Section (e) To the extent feasible, the department shall implement amulti- ($92$000,000) shall be available for the protection and restoration of (5) Groundwater recharge and management projects. 75026 at the time of the department's grant selection process, the funds objective management approach for floodplains that would include, but rivers, lakes and streams, their watersheds and associated land, water, (6) Contaminant and salt removal through reclamation, desalting, allocated to that hydrologic region or sub-region shall not be reallocated not be limited to, increased flood protection, ecosystem restoration, and and other natural resources in accordance with the following schedule: and other treatment technologies and conveyance of reclaimed water for to another region but will remain unallocated until such time as an farmland protection. (a) The sum of one hundred eighty million dollars ($180,000,000) distribution to users. adopted plan from the hydrologic region or sub-region is submitted to the 75032.4. Notwithstanding Section 13340 of the Government shall be available to the Department of Fish and Game,in consultation with (7) Water banking, exchange, reclamation and improvement of department. Code, the funds allocated in Sections 75031 and 75032 are continuously the department,for Bay-Delta and coastal fishery restoration projects.Of water quality. 75029. The sum ofone hundred thirty million dollars($130,000,000) ° 1401 Text of Proposed Laws*** _ ***Text of Proposed Laws 1 141 TEXT OF PROPOSED LAWS * * * (PROPOSITION 84 CONTINUED) * * TEXT OF PROPOSED LAWS the funds provided in this section, up to $20,000,000 shall be available development of facilities to support local conservation corps programs, 10330 of Division 10.4.........$15,000,000. (a) The sum of four hundred million,dollars ($400,000,000) shall for the development of a natural community conservation plan for the and for local resource conservation activities. (2) Oak Woodland Preservation pursuant to Article 3.5(commencing be available to the Department of Parks and Recreation for development, CALFED Bay-Delta Program and up to$45,000,'000 shall be available for (m) The sum of ninety million dollars ($90,000,000) to the state with Section 1360) of Chapter 4 of Division 2 Hof the Fish and Game acquisition, 'interpretation, restoration and rehabilitation of the state coastal salmon and steelhead fishery restoration projects that support the board for matching grants to local public agencies for the reduction and Code....$15,000,000. park system and its natural,historical,and visitor serving resources. The development and implementation of species recovery plans and strategies prevention ofstormwater contamination of rivers,lakes,and streams. The (3) Agricultural land preservation pursuant to the California Department of Parks and Recreation shall include the following goals in or salmonid species listed as threatened or endangered under state or, setting spending priorities for the funds appropriated pursuant to this f P g Legislature may enact legislation to implement this subdivision. Farmland Conservancy Program Act of 1995,Article 1(commencing with federal law. (n) The sum of one hundred million dollars ($100,000,000) shall Section 10200)ofDivision 10.2.......$10,000,000. section: i (b) The sum of ninety million dollars ($90,OOQ000) shall be be-available to the secretary for the purpose of implementing a court (4) To the board for grants to assist farmers in integrating (1) The restoration,rehabilitation and improvement ofextstingstate available for projects related to the Colorado River in accordance with settlement to restore flows and naturally-reproducing and self-sustaining Itural activities with ecosystem restoration and wildlife park system lands and facilities. the following schedule: populations of salmon to the San Joaquin River between Friant Dam and protection.....$5,000,000. (2) The expansion of the state park system to reflect the growing (1) Not more than$36,000,000 shrill be available to the department the Merced River.These funds shall be availablefor channel and structural population and shifting population centers and needs of the state. for water conservation projects that implement the Allocation Agreement improvements,and related research pursuant to the court settlement. The CHAPTER 7. 'PROTECTION OF BEACHES, BAYS AND (3) The protection of representative natural resources based on the as defined in the Quantification Settlement . secretary au a COASTAL tion Settlt Agreementt is to enter into cost-sharing agreement with the WATERS criteria and priorities identified in Section 75071. � (2) Not more than$7,-000,000 shall be available to the Department United States Secretary of the Interior and other parties,as necessary,to (b) The sum of one hundred million dollars ($100,000,000) shall of Fish and Game for projects to implement the Lower Colorado River implement this provision. 75060. The sum offive hundredforty million dollars($540,000,000) be available to the Department of Parks and Recreation for grants Multi-Species Habitat Conservation Plan. shall be availablefor theprotection ofbeaches,baysandcoastal watersand for nature education and research facilities and equipment to non- (3) $47,000,000 shall be available for deposit into the Salton Sea CHAPTER 6. FOREST AND WILDLIFE CONSERVATION watersheds,including projects to prevent contamination and degradation profit organizations and public institutions, including natural history Restoration Fund., 75055. Thesumoffourhundredfiftymilliondollars($450,000,000) of coastal waters and watersheds, projects to protect and restore the museums, aquariums, research facilities and botanical gardens.Eligible c The sumo t our million dollars $54,000,000 shall be natural habitat values of coastal waters and lands, and projects and institutions include those that combine the study of natural science with O f fifty f ( ) shall be available for the protection and conservation offorests and wildlife ex endituPes to promote access to and enjoyment o the coastal resources available to the de artment or development, rehabilitation, acquisition, P P J Y f preservation, demonstration and education programs that serve diverse P f P 9 habitat according to thefollowing schedule: o the state,in accordance with the following schedule: and restoration costs related to providing-public access to recreation f f g populations, institutions that provide collections and programs related and fish and wildlife resources in connection with state water project (a) Notwithstanding Section 13340 of the Government Code, the (a) The sum ofninety million dollars($90,000,000)shall be available to the relationship of Native American cultures to the environment, arld sum of one hundred eighty million dollars($18Q000,000)is continuously to the slate board for the purpose ofmatchinggrants for protecting beaches institutions for marine wildlife conservation research.Grants may be used obligations pursuant to Water Code Section 11912. appropriated to the board for forest conservation and protection projects. d The sumo seventy two million dollars $72,000,000 shall be and coastal waters from pollution and toxic contamination pursuant to the for buildings,structures and exhibit galleries that present the collections O f Y ( ) The goal of this grant program is to promote the ecological integrity and Clean Beaches Program, Chapter 3(commencing with Section 30915)of to inspire and educate the public and for marine wildlife conservation available to the secretary for projects in accordance with the California economic stability of California's diverse native forests for all their public River Parkways Act o 2004 Chapter 3.8(commencing with Section 5750 Division 20.4.Not less than$35,OOQ000 shall be for grants to local public research equipment and facilities. Y f P ( g ) benefits through forest conservation, preservation and restoration of agencies t6 assist those agencies to comply with the discharge prohibition of Division 5. Up to$10,000,000 may be transferred to the Department of productive managed forest lands,forest reserve areas, redwood'forests into Areas o Special Biological Significance contained in the California .' Conservation or the Watershed Coordinator Grant Program. .f P gCHAPTER,9. .SUSTAINABLE COMMUNITIES AND CLIMATE f g and other forest types,including the conservation of water resources and Ocean Plan.Not less than 20%of the funds allocated by Yhis subdivision CHANGE REDUCTION (e) The sum of eighteen million dollars ($18,000,000) shall be natural habitats for native fish,wildlife and plants found on these lands. shall be available to the Santa Monica Bay Restoration Commission. available to the department for the Urban Streams Restoration Program (b) (1)Notwithstanding Section 13340 of the Government Code,the (b) The sum ofone hundred thirtyfive million dollars($135,000,000) 75065. The sum offive h undred eighty million dollars($580,000,000) pursuant to Water Code Section 7048. sum of one hundred thirty five-million dollars ($135,000,000) is hereby shall be available or improving the sustainabilit and livability o shall be available for the State Coastal Conservancy for expenditure f P g Y Y f � i (f) The sum of thirty six million dollars' ($36,000,000) shall continuously appropriated to the boardfor the development,rehabilitation, pursuant to Division21. California's communities through investment in natural resources. The • be available for river parkway projects toy-the San Joaquin River restoration,acquisition and protection of habitat that accomplishes one or (c) The sum of one'hundred eight million dollars ($108,000,000) Purposes of this chapter include reducing urban communities'contribution Conservancy. more of the following objectives: shall be available for the San Francisco Bay Area Conservancy Program to global warming and increasing their adaptability to climate change • while improving the quality o lift in those communities. Funds shall be (g) The sum of seventy two million dollars ($72,000,000)shall be (A) Promotes the recovery of threatened and endangered species. pursuant to Chapter 4.5 of Division 21. Not less than 20%of the funds P g q y f f available for projects within the watersheds of the Los Angeles and San B Provides corridors linking separate habitat areas to prevent available in accordance with the following schedule: O g P P allocated by this paragraph shall be expended on projects in watersheds ,Gabriel Rivers according to the following schedule: fragmentation. - draining directly to the Pacific Ocean. (a) The sum ofninety million dollars($90,000,000)shall be available (1) $36,000,000 to the San Gabriel and Lower Los Angeles Rivers C Protects significant natural landscapes and ecosystems such as The sumo ort five million dollars $45,000,000 or the .for urban'greening projects that reduce erletrgy consumption, conserve O P y (ti f f Y fi ( )f water, improve air and water quality, and'provide other community and Mountains Conservancy pursuant to Division 22.8(commencing with old growth redwoods,mixed conifer forests and oak woodlands,riparian protection of the Santa Monica Bay and its watersheds shall be available P q y' P Y Section 32600). and wetland areas,and other significant habitat areas. benefits.Priority shall be given to projects that provide multiple benefits, as follows: use existing public lands,serve communities with the greatest need, and (2) $36,000,000 to the Santa Monica Mountains Conservancy (D) Implements the recommendations of California Comprehensive (1) To the Santa Monica Mountains Conservancy pursuant to facilitate joint use of public resources and investments including schools. for implementation of watershed protection activities throughout the Wildlife Strategy,as submitted October 2005 to the United States Fish and Division 23(commencing with Section 33000)........$20,000,000. watershed of the Upper Los Angeles River pursuant to Section 79508 of Wildlife Service. Implementing legislation shall provide for planning grants for urban (2) To the Baldwin Hills Conservancy for the protection of the greening programs. Not less than $20,000,000 shall be available for the Water Code. 2 Funds authorized b this subdivision ma be used or direct O Y y f Ballona Creek/Baldwin Hills watershed......$IO,OOg000. urban forestry projects pursuant to the California Urban Forestry Act, (h) The sum of thirty six million dollars ($36,000,000) shall be expenditures or or rants and or related'state administrative costs, 2(commencing with Section 4799.06 o Part 2.5 o Division 1. P f g f (3) To the Rivers and Mountains Conservancy......$15,000,000. Chapter (c g ) f of Division the Coachella Valley Mountains Conservancy. pursuant to the Wildlife Conservation Law of 1947 Chapter 4(commencing (i) The sum of forty five million dollars ($45,000,000) shall be with Section 1300) of Division 2 of the Fish and Game Code, the Oak (ti The sum of forty five million dollars all be00,0 a for the ail The sum of four hundred million dollars Recre($40ation or competitive shall Protection of Monterey Bay and its watersheds shall be available to the be available to the Department of Parks and Recreation for competitive available for projects to expand and improve the Santa Ana River Parkway. Woodland Conservation Act,Article 3.5(commencing with Section 1360) State Coastal Conservancy. grants for local and regional parks. Funds provided in this subdivision Project funding shall be appropriated to the State Coastal Conservancy of Chapter 4 of Division 2 of the Fish and Game Code,and the California (9 The sum of twenty seven million dollars ($27,000,000)for the may be allocated to existing programs or pursuant to legislation enacted for projects developed in consultation with local government agencies Rangeland, Grazing Land and Grassland Protection Act, commencing to implement this subdivision,subject to the following considerations: participating in the development of the Santa Ana River Parkway. Of with Section 10330 of Division 10.4.Funds scheduled in this subdivision protection of San Diego Bay and adjacent watersheds shall be available to' P I f g r � the amount provided in this paragraph the sum of thirty million dollars may be used to prepare management plans for properties acquired by the the State Coastal Conservancy. (1) Acquisition and development of new parks and expansion of ($30,000,000)shall be equally divided between projects in Orange, San Wildlife Conservation Board and for the development of scientific data, (g) The sum of ninety—million dollars ($90,000,000) shall be overused parks that provide park and recreational access to underserved Bernardino and Riverside Counties. Ihabitat mapping and other research information necessary to determine allocated to the California Ocean Protection Trust Fund (Chapter 4 communities shall be given preference. (j) The sum of fifty four million dollars ($54,000,000) shall be the-priorities for restoration and acquisition statewide. (commencing with Section 35650)of Division 26.5)and available for the (2) Creation of parks in neighborhoods where none currently exist available for the Sierra Nevada Conservancy. (3) Up to twenty five million dollars($25,000,000)may be granted purposes of projects consistent with Section 35650. Priority prc4ects shall shall be given preference. (k) The sum of thirty six million dollars ($36,000,000) shall be to the University of California for the Natural Reserve System for matching include the development of scientific data needed to adaptively manage (3) Outreach and technical assistance shall be provided to available for the California Tahoe Conservancy. grants for land acquisition and for the construction and development the state's marine resources and reserves, including the development of underserved communities to encourage full participation in the program of facilities that will be used for research and training to improve the marine habitat maps, the development and implementation of projects to or programs. (1) The sum of forty five million dollars ($45,000,000) shall be management o natural lands and the reservation o California's wildli e foster sustainable fisheries using loans and grants, and the development 4 Preference shall be given to applicants that active[ involve available to the California Conservation Cor s or resource conservation g f P ff O f g pp y P f and implementation of projects to conserve marine wildlife. and restoration projects and for facilities acquisition, development, resources. community based groups in the selection and planning of projects. d restoration, and rehabilitation and for grants an CHAPTER c4. PARK5 AND NATURE EDUCATION FAC/CITIESd state administrative (c) The sum of ninety million dollars ($90,000,000) shall be ' (5) Projects will be designed to provide efficient use of water and costs,in accordance with the following schedule: available to the board forgrants to implementor assist in the establishment other natural resources. (1) The sum of twenty five million dollars ($25,000,000) shall be of Natural Community Conservation Plans,Chapter 10(commencing with 75063. The sum offive hundred million dollars ($500,000,000) (c) The sum ofninety million dollars($90,000,000)shallbe available Section 2800)ofDivision 3 of the Fish and Game Code. shall be available to provide public access to the resources o the State or planning rants and planning incentives, including revolving loan available for projects to improve public safety and improve and restore P P f f P g g P g g g ' watersheds including regional and community fuel load reduction projects (d) The sum of forty five million dollars ($45,000,000) shall be of California, including its rivers, lakes and streams, its beaches, bays programs and other methods to encourage the development of regional on public lands,and stream and river restoration projects.Not less than 50% available for the protection of ranches, farms, and oak woodlands and coastal waters, to protect those resources for future generations,and and local land use plans that are designed to promote water conservation, of these.funds shall be in the form ofgrants to local conservation corps. according the following schedule: to increase public understanding and knowledge of those resources, in reduce automobile use and fuel consumption,encourage greater infill and (2) The sum of twenty million dollars ($20,000,000) shall be • (1) Grazing land protection pursuant to the California Rangeland, accordance with thefollowing schedule: compact development,protect natural resources and agricultural lands, available for grants to local conservation corps,for acquisition and Grazing Land and Grassland Protection Act, commencing with Section and revitalize urban and community centers. 1421 Text of Proposed Laws*** *�*Text of Proposed Laws 1 143 TEXT OF PROPOSED LAWS * * * (PROPOSITION 84 CONTINUED) * * * TEXT OF PROPOSED LAWS 75066. Appropriation of the funds provided in subdivisions(a)and for the purposes of reimbursing the General Fund,pursuant to the Natural and sold to carry out those actions progressively,and it is not necessary SEC.3. Parental Notification, (c)of Section 75065 may only be made upon enactment of legislation to Heritage Preservation Tax Credit Act of 2000(Division 28(commencing that all of the bonds authorized to be issued be sold at any one time. Section 32 is added to Article I of the California Constitution,to read: implement that subdivision. with Section 37000)). 75084. There shall be collected annually in the same manner and SEC.32. (a) For purposes of this section,the following terms shall 75074. In enacting Chapters 5, 6, 7 and 8 of this division it is the at the same time as other state revenue is collected, in addition to the be defined to mean: CHAPTER 10. MISCELLANEOUS PROVISIONS intent of the people,that when a project or program is funded herein,funds ordinary revenues of,the state, a sum in an amount required to pay the (1) `Abortion" means the use of any means to terminate the .for such program or project may be used to the full extent authorized by the principal of, and interest on, the bonds maturing each year,and it is the pregnancy of'an unemancipated minor known to be pregnant, except for 75070. Every proposed activity or project to be financed pursuant statute governing the program or conservancy receiving such funds. duty of all officers charged by law with any duty in regard to the collection the purpose of producing alive birth. 'Abortion"shall not include the use to this division shall be in compliance with the California Environmental o the revenue to do so and perform each and ever act that is necessary to • Quality Act,Division 13(commencing with Section 21000). 75075. The body awarding any contract for a public works project .f p f y y of any contraceptive drug or device, financed in any part ftomfunds made available pursuant to this division collect that additional sum. „ 75070.4. Acquisitions of real property pursuant to Chapters 5,6, 7, (2) "Medical emergency means a condition which, on the basis of shall adopt and'enforce,or contract with a third party to enforce,a labor 75085. Notwithstanding Section 13340 of the Government Code, the physician's good faith clinical judgment, so complicates the medical 8,and 9 shall be from willing sellers. compliance program pursuant to subdivision (b)of Labor Code Section there is hereby appropriated from the General Fund,for purposes of this condition of a pregnant unemancipated minor as to necessitate the 75070.5. Not more than 5%of the funds allocated to any program 1771.5 for application to that public works project. division,an amount that will equal the total of the following: immediate abortion of her pregnancy to avert her death or for which a in this division may be used to pay the costs incurred in the administration 6 75076. Chapter 3.5 (commencing with'Section 11340) of Part (a) The sum annually necessary to pay the principal of,and interest 'delay will create serious risk of substantial and irreversible impairment of of that program. 1 of Division 3 of Title 2 of the Government Code does not apply to the on, bonds issued and sold pursuant to this division, as the principal and a major bodily function. 75071. In evaluating potential projects that include acquisition or development and adoption of program guidelines and selection criteria interest become due and payable. (3) "Notice"means a written notification, signed and dated by a restoration for the purpose of natural resource protection,the Department adopted pursuant to this chapter. (b) The sum which is necessary to carry out the provisions ofSection physician or his or her agent and addressed to a parent or guardian of of Parks and Recreation, the board, and the State Coastal Conservancy 75077. Funds provided pursuant to this chapter, and an 75086,appropriated withoutre and to seal- ears. shall give priority to projects that demonstrate one or more of the following p p p �' g fi y an unemancipdted minor, informing the parent or guardian that she is appropriation or transfer of those funds, shall not be deemed to be a 75086. For the purposes of carrying out this division,the Director pregnant and that she has requested an abortion. characteristics: transfer o unds or the purposes o Chapter 9(commencing with Section f ff f P P f P ( g of Finance may authorize the withdrawal from the General Fund of an (4) "Parent or guardian"means a person who,at the time notice or (a) Landscape/Habitat Linkages:properties that link to, or 2780)of Division 3 of the Fish and Game Code. amount or amounts not to exceed the amount of the unsold bonds that have contribute to linking, existing protected areas with-other large blocks of waiver is required under this section,is either a parent if both parents have protected habitat.Linkages must serve to connect existingprotected areas, 75078. The Secretary shall provide for an independent audit been authorized to be sold for the purpose of carrying out this division. legal custody, or the parent or person having legal custody, or the legal facilitate wildlife movement or botanical transfer,and result in sustainable of expenditures pursuant to this division to ensure that all moneys are Any amounts withdrawn shall be deposited in the fund.Any money made guardian of an unemancipated minor. expended in accordance with the requirements of this division. The available under this section shall be returned to the General Fund,plus (5) "Unemancipated minor"means afemale under theageof18years combined acreage. secretary shall publish a list of all program and project expenditures the interest that the amounts would have earned in the Pooled Money b Watershed Protection: projects that contribute to long-term who has not entered into a valid marriage and is not ei active duty with the O P J g- pursuant to this division not less than annually,in written form,and shall Investment Account,from money received from the sale of bonds that armed services of the-United States and has not received a declaration of protection of and improvement to the water and biological quality of the post an electronic form of the list on the Resources Agency's Internet would otherwise be deposited in that fund. emancipation under state law.For the purposes of this section,pregnancy streams, aquifers, and terrestrial resources of priority watersheds of Website. 75087. All money derived from premium and accrued interest on does not emancipate a female under the age of 18 years. the major biological regions of the state as identified by the Resources 75079. The Secretary shall appoint a citizen advisory committee bonds sold shall be reserved and shall be available for transfer to the Agency. (6) "Physician" means any person authorized under the statutes , to review the annual audit and to identify and recommend actions to General Fund as a credit to expenditures for bond interest. and regulations of the State of California to perform an abortion upon an (c) Properties that support relatively large areas of under-protected ensure that the intent and purposes of this division are met by the agencies 75088. •Any bonds issued or sold pursuant to this division maybe unemancipated minor. major habitat types. responsible for implementation of this division. refunded by the issuance of refunding bonds in accordance with Article (b) Notwithstanding Section 1 of Article I,or any other provision of (d) Properties that provide habitat linkages between two or more 6(commencing with Section 16780)of Chapter 4 of Part 3 of Division 4 � major biological regions o the state. this Constitution or law to the contrary and except in a medical emergency j g g f CHAPTER 11. FISCAL PROVISIONS of Title 2 of the Government Code.Approval by the electors of the state as provided for in subdivision 0), a physician shall not perform an (e) Properties for which there is a non-state matching contribution 75080. Bonds in the total amount offive billion three hundred and for the issuance of the bonds shall include approval of the issuance of abortion upon a pregnant unemancipated minor until the physician or the toward the acquisition, restoration, stewardship or management costs. any bonds issued to refund any bonds originally issued or any previously h sician's agent has provided written notice to her parent or guardian Matching contributions can be either monetary or in the form of services, eighty eight million dollars($5,388,000,000),not including the amount of issued refunding bonds. p y g p P g any refunding bonds issued in accordance with Section 75088,or so much personally as provided for in subdivision(c)and a reflection period of at including volunteer services. . The people of California hereby.find and declare that least 48 hours has elapsed after personal deliver thereof as is necessary, may be Issued and sold to be used for carrying 75090 eo P f p y of notice;or until the (f) At least fourteen days before approving an acquisition project inasmuch as the proceeds from the sale of bonds authorized by this can resume that notice has been delivered b mail as provided out the purposes set forth in this division and to be used to reimburse the physician P � Y funded by this division,an agency subject to this section shall submit to the division are not `proceeds of taxes"as that term is used in Article XHI B in subdivision(d)and a reflection period of at least 48 hours has elapsed General Obligation Bond Expense Revolving Fund pursuant to Section Resources Agency and post on its website an explanation as to whether and 16724.5 of the Government Code. The bond proceeds shall be deposited in of the California Constitution,the disbursement of these proceeds is not after presumed delivery of notice by mail; or until the physician or the how the proposed acquisition meets criteria established in this section. 'subject to the limitation imposed by that article. agent has received a valid written waiver o notice as provided the Safe Drinking Water, Water Quality and Supply,Flood Control,River physician's S .f 75071.5. The Department of Parks and Recreation, the board, and Coastal Protection Fund of 2006 created by Section 75009.The bonds SEC.2. If any provision of this Actor the application thereof is held for in subdivision(e);or until the physician has received a copy ofa waiver and the State Coastal Conservancy shall work with the United States shall, when sold, be and constitute a valid and binding obligation of the invalid,that invalidity shall not affect other provisions or applications of the of notification from the court as provided in subdivision(h), (i),or 0).'A Department of Defense to coordinate the development of buffer areas State of California,and the full faith and credit of the State of California is act which can be given effect without the invalid provision or application, copy of any notice or waiver shall be retained with the unemancipated around military.facilities that facilitate the continued operation of those hereby pledged for the punctual payment of both principal of and interest and to this end the provisions of this act are severable. minor's medical records. The physician or the physician's agent shall facilities and promote the conservation and recreation goals of the state. on the bonds as they become due and payable. SEC.3. This Act is an exercise of the public power of the People of inform the unemancipated minor that her parent or guardian may receive To the extent consistent with this division,agencies may provide funding to 75081. The bonds authorized by this division shall be prepared, the State of California for the protection of their health,safety,and welfare notice as provided for in this section. support projects that meet the purposes of this section. executed, issued, sold, paid, and redeemed as provided in the State and shall be liberally construed to effectuate those purposes. (c) The written notice shall be delivered to the parent or guardian 75072. Up to 10 percent offunds allocated for each program funded General Obligation Bond Law, Chapter 4 (commencing with Section �7 p personally by the physician or the physician's agent unless delivered by this division may be used to finance planning and monitoring necessary 16720)of Part`3 of Division 4 of Title 2 of the Government Code,and all PR®P®S�I IO1V OS by mail, as provided in subdivision (d). A form for the notice,hall be for the successfid design, selection, and implementation of the projects provisions of that law shall apply to the bonds and to this division and are prescribed by the State Department of Health Services. The notice form authorized under thatprogram. This provision shall not otherwise restrict hereby incorporated in this division by this reference as though fully set This initiative measure is submitted to the people'in accordance with shall be bilingual, in English and Spanish, and also available in English funds ordinarily used by an agency for `preliminary plans," "working forth in this division. the provisions of Article II,Section 8 of the California Constitution. and each of the other languages in which California Official Voter drawings,"and "construction"as defined in the Annual Budget Act for 75082. (a) Solely for the purpose of authorizing the issuance and This initiative measure expressly amends the California Constitution Information Guides are published. a capital outlay project or grant project. Water quality monitoring shall sale,pursuant to the State General Obligation Bond Law, of the bonds by adding a section thereto;therefore,new provisions proposed to be added (d) The written notice may be delivered by certified mail addressed be integrated into the Surface Water Ambient Monitoring Program authorised'by this division, the Safe Drinking Water, Water Quality and are printed in italic type to indicate that they are new. to the parent or guardian at the parents or guardian's last known address administered by the state board. Supply,Flood Control,River and Coastal Protection Finance Committee with return receipt requested and restricted delivery to the addresasee. To 75072.5. For the purposes o Section 75060(e), "Montere Bay and y purposes f f g PROPOSED LAW help ensure timely notice,a co o the written notice shall also be sent at P P ,fY Y is hereby created.For ur oses o this division,the Safe Drinking Water,� P Y PY f its watVrsheds"shall be considered to be watersheds of those rivers and Water Quality and Supply, Flood Control,River and Coastal Protection the same time byfirst-class mail to the parent or guardian.Notice can only streams in Santa Cruz and Monterey Counties flowing to the Monterey Bay Finance Committee is "the committee" as that term is used by the SECTION 1. Title be presumed to have been delivered under theprovisions of this subdivision' southward to,and including,the Carmel River watershed. State General Obligation Bond Law. The committee shall consist-of the This measure shall be known and may be cited as the Parents'Right at noon of the second day after the written notice sent by certified mail was 75072.6. For purposes of Section 75060(j), "San Diego Bay and Controller,the Director ofFinance,and the Treasurer,or their designated to Know and Child Protection Initiative. postmarked, not counting any days on which regular mail delivery does adjacent watersheds"includes the coastal and bay watersheds within San representatives.The Treasurer shall serve as chairperson o the committee. not take place. J Y P P f SEC.,2. Declaration of Findings and Purposes A majority o the committee may act or the committee. (e Notice o an unemancipated minor's intent to obtain an abortion Diego County. I Y f Y f The people of California have a special and compelling interest in ) f 75072,7. For purposes of Section 75060(d), "Santa Monica Bay (b) For purposes of this chapter and the State General Obligation and responsibility for protecting the health and well-being of children, and the reflection period of at least 48 hours may be waived by her parent and watershed"includes the coastal and bay watersheds in Ventura and Bond Law,the secretary is designated as "the board." ensuring that parents are properly informed of potential health-related or guardian. The waiver must be in writing,,,Dn a form prescribed by the Los Angeles Counties from Calle uas Creek southward to the San Gabriel State Department of Health Services, signed by a parent or guardian, g f g 75083. The committee shall determine whether or not it is necessary risks and medical decisions involving their children, and promoting and dated,and notarized.The parent or guardian shall specify on the form that River. or desirable to issue bonds authorized pursuant to this division in order enabling parental care and responsibility. 75073. 'Funds scheduled in Chapter 5, 6, 7 and 8 of this division to carry out the actions specified in this division and,if so, the amount of the waiver is valid for 30 days,or until a specified date,or until the minor's that are not designated for competitive grant programs may also be used bonds to be issued and sold.Successive issues of bonds may be authorized eighteenth birthday.The written waiver need not be notarized if the parent 1441 Text of Proposed Laws * ***Text of Proposed Laws 1 145 TEXT OF PROPOSED LAWS * * (PROPOSITION 85 CONTINUED) TEXT OF PROPOSED LAWS or guardian personally delivers it to the physician or the physician's agent. proceedings.Each court shall provide annually to the Judicial Council,in agent for the purpose of inducing the physician or the physician's agent to burden on our state's health care system continue. The form shall include the following statement: a manner to be prescribed by the Judicial Council to ensure confidentiality believe that pursuant to this section notice has been or will be delivered, (e) The deterioration of the state's hospital emergency services "WARNING.It is a crime to knowingly provide false information of the unemancipated minors filing petitions, a report of the number of or that a waiver of notice has been obtained, or that an unemancipated network has left many communities unable to adequately cope with the to a physician or a physician's agent for the purpose of inducing a petitions filed, the number of petitions granted under paragraph (1) or minor patient is not an.unemancipated minor,is guilty o a misdemeanor' 2 o subdivision. h P P 8 Y .f normal flow of emergency services. This emergency services crisis physician or a physicians agent to believe that a waiver of notice () f (), deemed granted under subdivision (i), denied punishable b a ne o u to one thousand dollars $1,000). has been provided by a parent or guardian."The waiver form shall be under paragraph (3) of subdivision (h), and granted and denied under P t fi f P ( _ imposes a significant burden on our community clinics and keeps them subdivision said reports to be publicly available unless the Judicial (q) Notwithstanding any notices delivered pursuant to subdivision from fulfilling their important health care function for low income children bilingual,in English and Spanish,and also available in English and each (j). P P Y (c)or(d)or waivers received pursuant to subdivision(e), (h), (i), or(j), and adults. of the other languages in which California Official Voter Information Council determines that the data contained in individual reports should be except where the particular circumstances of a medical emergency or her Funds which could be used to provide pioneering research into , aggregated b count be ore being made available to the public in order to (� p P g Guides are published.For each abortion performed on an unemancipatedY Y / 8 own mental incapacity precludes obtaining her consent,a physician shall the revention and treatment of chronic diseases, and health insurance minor pursuant to this subdivision; the physician or the physician's agent preserve the confidentiality of the unemancipated minors filing petitions. , p not perform or induce an abortion upon an unemancipated minor except ' for our most vulnerable children,are increasingly diverted to address the must receive a-separate original written waiver that shall be retained with (1) The State Department of Health Services shall prescribe forms with the consent of the unemancipated minor herself. health care crisis caused,in part,by tobacco-related illnesses. the unemancipated minor's medical records. for the reporting of abortions performed on unemancipated minors by r Notwithstandingan notices delivered pursuant to subdivision n Notice shall not be required under this section i the attending physicians.The report forms shall not identify the unemancipated minor or () Y P 8. Almost 80 h c adult smokers become addicted to tobacco before � q f 8 her arent s or guardian b name or request other information b which (c)or(d)or waivers received pursuant to subdivision(e),(h),(i),or(j),an age 18.Increasing the cost of cigarettes and other tobacco products and physician certifies in the unemancipated minor's medical records the P O 8 Y q f Y unemancipated minor who is being coerced b an person through force, medical indications su ortin the h sician's good-faith clinical"ud ment the unemancipated minor or her parent(s)orguardian might be identified. P 8 y on 8 f providing a comprehensive tobacco control program among youth a d be supporting P Y 8 f � 8 The forms shall include the date of the procedure and the unemancipated threat of force, or threatened or actual deprivation of food or shelter to two of the most effective ways to reduce smoking among youth and the that the abortion is necessary due to a medical emergency. consent to undergo an abortion may apply to the juvenile court for relief associated health problems and economic costs. birth, duration the pregnancy,the type o P s minor's month and year of bt ,the d of h p g y, yp f (g) Noticeshallnotberequiredunderthissectionifwaivedpursuantto The court shall give the matter expedited consideration and grant such $ abortion procedure, the numbers of the unemancipated minor's previous (h) The establishment of programs designed to (1) reduce the this subdivision and subdivision(h),(i),or(j).Ifthe pregnant unemancipated relief as may be necessary to prevent such coercion. uar minor elects not to permit notice to be given to a arent or guardian,she may abortions and deliveries if known, and the facility where the abortion consumption of tobacco in the first instance, (2) fund research, early P 8 P 8 Y (s) This section shall not take effect until 90 days after the election detection and treatment of chronic diseases, and(3) preserve access to a I,pursuant to this subdivision, an was performed. The forms shall also indicate whether the abortion was file Petition with the juvenile court. f P per after personal delivery of a notice,pursuant to subdivision in which it is approved. The Judicial Council shall, within these 90 days, emetgency hospital services performed by well-trained doctors and nurses, unemancipated minor seeks to file a petition,the court shall assist the minor prescribe the rules, practices, and procedures and prepare and make or erson designated b the minor in re arin the documents required (c); or was an abortion performed after presumed delivery of a notice P P P P P is vital to the public's interest. P 8 Y P P 8 q b mail, pursuant to subdivision d; or was an abortion performed available any forms it may prescribe as provided in subdivision(k). The pursuant to this section.Thepetition shall setforth with specificitythe minor's Y P O P f State Department Health Services shall,within these90da s,prepare SEC.2. Statement of Purpose reasons or the request. The court shall ensure that the minor's identity be after receiving a waiver of notice,pursuant to subdivision(e);or was an P f Y (a) The people of California hereby increase the tax on tobacco to f q Y and make available the forms prescribed in subdivisions(c),(e),and(1). abortion performed without notice,pursuant to subdivision(f);or was an reduce the economic costs of tobacco use in California and to provide kept confidential and that all court proceedings be sealed.No filing fee shall P abortion performed after receiving any judicial waiver of notice,pursuant (t) If any one or more provision, subdivision, sentence, clause, be required for filing a petition. The unemancipated minor shall appear supplemental funding to: personally in the proceedings in juvenile court and may appear on her to subdivision(h),(i),or(j). phrase or word of this section or the application thereof to any person or m The physician p f P circumstance is found to be unconstitutional or invalid,the same is hereby (1) promote medical research into chronic diseases, particularly • own behalf or with counsel of her own choosing. The court shall,however, ( ) p y � ian who er orms an abortion on an unemancipated f cancer; advise her that she has a right to court-appointed counsel upon request:The minor shall within one month file a dated and signed report concerning it declared to be severable and the balance o this section shall remain r 8 PP P q effective notwithstanding such unconstitutionality or invalidity. Each (2) reduce the impact of chronic diseases through prevention,early court shall appoint a guardian ad litem for her. The hearing shall be held with the State Department of Health Services on forms prescribed pursuant r 8 y Y to subdivision 1 The identity o the h sician shall be kept confidential and provision, subdi��ision, sentence, clause,phrase, or word of this section detection,treatment and comprehensive health insurance;and by 5 p.m.on the second court day after filing the petition unless extended at O Y f P Y P fi would have been approved b voters irrespective o the act that an one 3 improve access to and deliver of health care, articular) the written request of the unemancipated minor, her,guardian ad litem,or shall not be subject to disclosure under the California Public Records Act. PP Y P f f Y O P Y particularly her counsel.If the guardian ad litem requests an extension, that extension (n) The State Department of Health Services shall compile an annual or more provision,subdivision,sentence,clause,phrase,or word might be emergency health services. declared unconstitutional or invalid. SEC.3. Tobacco Tax may not be granted for more than one court day without the consent of the statistical reportfrom the information specified in subdivision(1).The annual unemancipated minor or her counsel. The unemancipated minor shall be report shall not include the identity of any physician who filed a report as (u) Exceptfor the rights,duties,privileges,conditions,and limitations Article 4(commencing with Section 30132)is added to Chapter 2 of notified of the date,time,and place of the hearing on the petition.Judgment required by subdivision (m). The compilation shall include statistical specifically provided for in this section, nothing in this section shall be Part 13 of Division 2 of the Revenue and Taxation Code,to read: shall be entered within one court day of submission of the matter. The judge information on the numbers of abortions by month and by county where construed to grant, secure, or deny any other rights, duties, privileges, • shall order a record of the evidence to be maintained,including the judge's performed, the minors'ages, the duration of the pregnancies, the types of conditions,and limitations relating to abortion or the funding thereof. Article 4. The Tobacco Tax of 2006 Trust Fund • written factual findings and legal conclusions supporting the decision. abortion procedures, the numbers of prior abortions or deliveries where(h) (1) If the judge finds,by clear and convincing evidence,that the known,and the numbers of abortions performed after personal delivery of PROPOSITION 86 30132. The Tobacco Tax of 2006 Trust Rind ("Tobacco Trust unemancipated minor is sufficiently mature and well-informed to decide a notice,pursuant to subdivision(c);the numbers of abortions performed Fund')is hereby created in the State Treasury. The fund shall consist of after resumed deliver o a notice b mail,pursuant to subdivision d This initiative measure is submitted to the people in accordance with all revenues deposited therein pursuant to this Article, including interest whether to have an abortion, the judge shall authorize a waiver of notice f P Y f Y P O: P P 8 the numbers o abortions performed after a waiver o notice,pursuant to the provisions of Section 8 of Article II of the California Constitution. and investment income. Moneys deposited into the Tobacco Tax o 2006 of a parent or guardian. f P f f f P Y P f • (2) If the judge finds,by clear and convincing evidence, that notice subdivision(e);thenumbersofabortionsperformed without notice,pursuant This initiative measure adds sections to the California Constitution Trust Fund shall be allocated and are continuously appropriated for the • • to a parent or guardian is not in the best interests of the unemancipated to subdivision(f);and the numbers ofabortions performed after anyjudicial and the Health and Safety Code, the Insurance Code, the Revenue and exclusive purpose offunding theprograms and services in Section 30132.3 minor,the judge shall authorize a waiver ofnotice.Ifthe finding that notice waivers,pursuant to subdivision(h),(i),or 0).The annual statistical report Taxation Code, and the Welfare and Institutions Code; therefore, new and shall be available for expenditure without regard to fiscal years. shall be made available to county public health officials, Members of the provisions proposed to be added are printed in italic type to indicate that to a parent or guardian is not in the best interests of the minor is based on 30132.1. (a) In addition to the taxes imposed upon the distribution evidence of physical, sexual, or emotional abuse, the court shall ensure Legislature,the Governor,and the public. they are new. of cigarettes by Article I (commencing with Section 30101) and Article that such evidence is brought to the attention of the appropriate county (o) A nyperson whoperforms an abortion on an unemancipated minor PROPOSED LAW 2 (commencing with Section 30121) and Article 3 (commencing with child protective agency. and in so doing knowingly or negligentlyfails to comply with the provisions Section 30131)and any other taxes in this Chapter,there shall be imposed (3) If the judge does not make a finding specified in paragraph(1)or of this section shall be liable for damages in a civil action brought by the an additional tax upon every distributor of cigarettes at the rate of one unemancipated minor,her legal representative,or b a arent or guardian THE TOBACCO TAX ACT OF 2006 hundred thirty mills $0.130 or each cigarette distributed. (2),the judge shall deny the petition. P 8 P Y P 8 Y ( )f 8 i I the judge ails to rule within the time period specified in ' wrongfully denied notification. A person shall not be liable under this SECTION 1. Statement of Findings (b) For purposes of this Article, the term "cigarette"has the same () f 1 8 f Psection if the person establishes by written evidence that the person relied subdivision(g)and e extension was requested and granted, the petition (a) Cigarette smoking and other uses of tobacco are leading causes meaning as in Section 30003,as it read on January 1,2005. upon evidence sufficient to convince a careful and prudent person that the of man serious health roblems,'inciudin cancer, heart disease and shall be deemed granted and the notice requirement shall be waived. � Y P g (c) The tax imposed by this Section,and the resulting increase in the representations of the unemancipated minor or other persons regarding respiratory diseases. The treatment of tobacco-related diseases imposes tax on tobacco products required by subdivision(b)of Section 30123,shall (j) The unemancipated minor may appeal the judgment of the information necessary to comply with this section were bona fide and true. a significant burden upon California's already overstressed-health care be imposed on every cigarette and on all tobacco products in the possession juvenile court at any time after the entry ofjudgment,The Judicial Council At any time prior to the rendering of a final judgment in an action brought system.Prior efforts to curb the use of tobacco have not sufficiently eased or under the control of every dealer, wholesaler, and distributor on and shall prescribe,by rule,the practice and procedure on appeal and the time under this subdivision,the parent or guardian may elect to recover,in lieu the health care burden on the taxpayers of California. after e 01 a.m.control January 1,dealer, pursuant , rules and regulations and manner in which any record on appeal shall be prepared and filed of actual damages, an award of statutory damages in the amount of ten and may prescribe forms for such proceedings. These procedures shall thousand dollars ($10,000). In addition to any damages awarded under (b) Tobacco use costs Californians billions of dollars a year in promulgated by the State Board of Equalization. _ require that the hearing shall be held within three court days offiling the this subdivision, the plaintiff shall be entitled to an award of reasonable medical expenses and lost productivity. 30132.2. The State Board of Equalization shall determine notice of appeal. The,unemancipated minor shall be notified of the date, attorney fees.Nothing in this section shall abrogate, limit, or restrict the (c) Currently, the state imposes a tax on cigarettes and tobacco within one year of the passage of this Act, and annually thereafter, the time,and place of the hearing.Judgment shall be entered within one court common law rights of parents or guardians, or any right to relief under products:Funds from that tax are used in part by the state to fund programs effect that the additional tax imposed on cigarettes by this Act, and the day of submission of the matter. The appellate court shall ensure that the any theory of liability that any person or any state or local agency may to offset the adverse health consequences of tobacco use.The tobacco tax resulting increase in the tax on tobacco products required by subdivision unemancipated minor's identity be kept confidential and that all court have under any statute or common law for any injury or damage,including is an appropriate source to fund prevention, research and treatment of (b)of Section 30123,have on the.consumption of cigarettes and tobacco proceedings be sealed.No filing fee shall be required for filing an appeal. any legal,equitable,or administrative remedy under federal or state law, chronic diseases, including improved access to health care for children products in this state. To the extent that a decrease in consumption is Judgment on appeal shall be entered within one court day of submission against any party,with respect to injury to an unemancipated minor from and adults. , determined by the State Board of Equalization to be a direct result of the of the matter. an abortion. (d) The tax on tobacco products in California has not been,raised additional tax imposed by this Act, or the resulting increase in the tax (k) The Judicial Council shall prescribe, by rule, the practice and (p) Other than an unemancipated minor who is the patient of a since 1998. As a consequence, the total tax levied on tobacco products on tobacco products required by subdivision (b) of Section 30123, the procedure for petitions for waiver of parental notification, hearings,and physician,or other than the physician or the physician's agent,any person is much less than in many other states. Yet the health consequences to State Board of Equalization shall determine the fiscal effect the decrease entry ofjudgment as it deems necessary and may prescribe.forms for such who knowingly provides false information to a physician or a physician's our citizens,,particularly children and young adults,and the corresponding in consumption has on the California Children and Families Trust Fund created by Proposition 10 (1998). Funds shall be transferred from the 146 1 Text of Proposed Laws yt* ***Text of Proposed Laws 1 147 TEXT OF PROPOSED LAWS (PROPOSITION 86 CONTINUED) TEXT OF PROPOSED LAWS Tobacco Trust Fund to the Cali ornia Children and Families Trust Fund as disease,which includes chronic bronchitis and em judgments, d Tobacco Mt development hysema. laws, court jugmens, an settlements, such as the oacco Masterand evaluation and id strategic provide guidance on sg priorities, f Pi necessary to offset the revenue decrease directly resultingfrom imposition (b) To the Health Maintenance and Disease Prevention Account, Settlement Agreement and the Smokeless Tobacco Master Settlement coordination,and collaboration among state agencies with regard to the of the additional tax imposed by this Act,and the resulting increase in the which is hereby created,forty-two and one fourth of one percent(4�.25%), Agreement,entered into on November 23, 1998,by the State of California programs funded by the Obesity Prevention and Nutrition and Physical tax on tobacco products required by subdivision(b)of Section 30123. The allocated to the following Sub-Accounts for the purposes stated therein: and leading United States tobacco product manufacturers, including Activity Promotion Sub-Account. reimbursements shall occur,and at such times,as determined necessary to (1) Six and three fourths percent(6.75%)shall be deposited in the tracking tobacco industry advertising, marketing, and promotional (10) Four and one fourths percent(4.25%)shall be deposited in an further the intent of this Section. Tobacco Control Media Campaign Sub-Account,which is hereby created. activities in California, and bringing actions against violators; and Asthma Prevention and Control Sub-Account,which is hereby created.All assisting local law enforcement agencies in the enforcement o tobacco- 30132.3.• Except for payments of refunds made pursuant to Article 1 All funds in the Tobacco Control Media Campaign Sub-Account shall be g f g f f funds in the Asthma Prevention and Control Sub-Account shall be used (commencing with Section 30361) of Chapter 6, reimbursement of the continuously appropriated to the State Department of Health Services to related statutes and local ordinances through technical assistance and solely to support asthma assessment, community intervention strategies, training activities. training and technical assistance, surveillance, evaluation o asthma ' State Board of Equalization for expenses incurred in the administration be used solely for media advertisements and public relations programs to g f and collection of the tax imposed by Section 30132.1 and the resulting prevent and reduce the use of tobacco products as described in paragraph (C) Twenty-five percent(25%)of the funds in the Tobacco Control prevention and control activities, translational research to implement increase in the tax on tobacco products required by subdivision (b) of (1)ofsubdivision(e)of Section 104375 of the Health and Safety Code. Enforcement Sub-Account is continuously appropriated to the State Board effective interventions,and school-based asthma education, training and f Equalization to be used to enforce laws that regulate the distribution and coordination activities.These funds shall be appropriated as follows: Section 30123,and transfers offunds in accordance with Section 30132.2, (2) Four and one-half percent (4.50%) shall-be deposited in a o all moneys raised pursuant to the tax imposed by Section 30132.1,and the Tobacco Control Competitive Grants Sub-Account, which is hereby sale of cigarettes and other tobacco products,such as laws that prohibit (A) Sixty percent(60916)of the funds in the Asthma Prevention and cigarette smuggling, counter e�hn resulting increase in the tax on tobacco products required by subdivision g counterfeiting,' g,selling untaxed tobacco, and selling Control Sub-Account is continuously appropriated to the State Department created.All funds in the Tobacco Control Competitive Grants Sub-Account proper license.p ro (b)of Section 30123,shall be deposited in the Tobacco Trust Fund.Moneys shall be continuously appropriated to the State Department of Health tobacco without a P of Health Services to fund programs and services including,but not limited # shall be allocated and appropriated from the Tobacco Trust Fund, as Services to be used solely for the competitive grants program directed at (7) Eight percent(8%)shall be deposited in a Breast and Cervical to those described in Chapter 6:S (commencing with Section 104316) of follows: the prevention of tobacco-related diseases as described in Section 104385 Cancer Early Detection Sub-Account, which is hereby created.All funds Part 1 of Division 103 of the Health and Safety Code,including community (a) To the Health and Disease Research Account, which is hereby of the Health and Safety Code. in the Breast and Cervical Cancer Early Detection Sub-Account shall be childhood asthma programs within the California Asthma Public Health created,five percent(5%),allocated to the following Sub-Accounts for the o continuously appropriated to the State Department of Health Services Initiative and asthma surveillance within the Environmental Health (3) Four and one fourths percent ion Sub shall be deposited in a to be used solely or breast and cervical cancer prevention and earl Investigations Branch, and to support media advertisements, public purposes stated therein: tment herebyY f P Y g PP Locoed. l l fundsDepa in theTobaccolHealth De Prevention Department Account,which is detection services that result in the reduction ofbreast and cervical cancer relations and other public education activities.Areas in the state that have (1) Thirty fourpercent(34%)shallbedepositedinaTobaccoControl created. All funds in the Local Health Department Tobacco Prevention Research Sub-Account,which is herebycreated.All funds in the Tobacco morbidity and mortality in California. These early detection services the highest asthma prevalence, and areas with low socioeconomic status f of Health Se shall be continuously appropriated to the State Department shall be part of a program that includes a significant quality assurance populations shall receive priority consideration in the expenditure of these Control Research Sub-Account shall be continuously appropriated,to of Health Services to be used solely for local-health-department-based the Universityo California to be used solely to supplement the Tobacco and improvement component, including patient and provider education, funds. / Y PP programs to prevent tobacco use as described in Section 104400 of the community outreach,and ro ram evaluation. Related Disease Research Program described in Article 2 (commencing Health and Safety Code.Notwithstanding Section 104380 ofthe Health and Y P g (B) Forty percent(40%)of the funds in the Asthma Prevention and with Section 104500)of Chapter I of Part 3 of Division 103 of the Health Safety Code,funds from the Local Health Department Tobacco Prevention (8) Eight and one-halfpercent(8.5091o)shall be deposited Yh a Heart Control Sub-Account is continuously appropriated to the State Department and Safety Code. The research funded by the Tobacco-Related Disease Sub-Account shall be appropriated to local lead agencies based on each Disease and Stroke Prevention Sub-Account,which is hereby created.All of Education to improve the management of asthma within the school Research Program with these supplementary funds shall include, but not 'county s proportion of the statewide population. funds in the Heart Disease and Stroke Prevention Sub-Account shall be setting.,Funds shall be for activities and programs, including, but not be limited to: (4) One-hat/percent(0.50%)shall be deposited in a Tobacco Control continuously appropriated to the State Department of Health Services limited to:statewide coordination of asthma programs and services, the (A) Research to improve the effectiveness of tobacco control efforts Evaluation Sub-Account,which is hereby created.All funds in the Tobacco to be used solely for the California Heart Disease and Stroke Prevention development or purchase and dissemination of educational and training in California, including programs and strategies or governmental and Program provided for in Section 104142 of the Health and Safety Code. materials,delivery of asthma education and training to school personnel, g P. g g f g Control Evaluation Sub-Account shall be continuously appropriated to The intent of this program is to reduce the risk,disability and death from and the reduction of asthma triggers in the indoor and outdoor school other organizations to reduce tobacco use and exposure to secondhand the State Department of Health Services to be used solely for evaluation f smoke;and of tobacco control programs as required by subdivisions (b)and(c) of heart disease and stroke. environments. Schools in areas of the state that have the highest asthma (9) Seven and three fourths percent (7.75%) shall be deposited in prevalence,schools serving low socioeconomic status students and school (B) Research on the prevention,.causes, and treatment of tobacco- Section 104375 of the Health and Safety Code. districts that do not have school nurses shall receive priority consideration related diseases, including, but not limited to coronary heart disease, S Three and one-hal ercent 3.50% shall be de osited in a an Obesity Prevention, Nutrition and Physical Activity Promotion Sub- P Y O f P ( ) P Account, which is hereby created. All funds in the Obesity Prevention, in the expenditure of these funds. cerebrovasculardIsease,chronic obstructive lung disease,and cancer. Tobacco Education Sub-Account,which is hereby created.All funds in the (2) Fourteen and one-half percent (14.50%)shall be deposited in Tobacco Education Sub-Account shall be continuously appropriated to the Nutrition and Physical Activity Promotion Sub-Account shall be ect Four and one fourths percent hereby)shall be deposited in a appropriated as follows: Colorectal Cancer Sub-Account,which is hereby created.All funds in the a Cancer Registry Sub-Account, which is hereby created. All funds in State Department of Education to be used solely for programs to prevent o Colorectal Cancer Sub-Account shall be continuously appropriated to the the Cancer Registry Sub-Account shall be continuously appropriated to or reduce the use of tobacco products as described in Section 104420 of (A) Seventypercent(70%)shall be continuously appropriated to the Y the State Department of Health Services to be used solely for a statewide the Health and Safety Code. Any program receiving funds pursuant to State Department of Health Services to support programs and activities State Department of Health Services to be used solely for the Colorectal population-based cancer surveillance system as provided for in Chapter 2 • this section must participate in program evaluations conducted by the to be used solely to prevent obesity, diabetes, and chronic diseases Cancer Prevention, Detection and Treatment Program described in (commencing with Section 103875)of Part 2 of Division 102 of the Health State Department of Health Services pursuant to Article I (commencing through the promotion of community norm change, healthy eating, and Article 2.7(commencing with Section 104195)of Chapter 2 of Part 1 of • physical activity. The department shall design, develop and enhance a Division 103 of the Health and Safety Code. The intent of this program is • • and Safety Code. with Section 104350)of Chapter 1 of Part 3 of Division 103 of the Health to reduce the incidence,morbidity,and mortality due to colorectal cancer. (3) Twentyfiveand three fourthspercent(25.75%)shallbedeposited and Safety Code.At least two percent(2%)of the money in the Tobacco comprehensive program that includes, but need not be limited to:media This program shall include various public health et o components, including Education Sub-Account shall be used solely or administration o the advertisements and public relations programs; competitive grants to P g P P g in a Breast Cancer Research Sub-Account, which is hereby created. All Y f f community based organizations and agencies; rants to local health a significant quality assurance and improvement component,patient and funds in the Breast Cancer Research Sub-Account shall be continuously department's tobacco prevention education program as described in Y g g g rovider education, community outreach, and program evaluation. No departments;research and evaluation ofprogram effectiveness;and those P Y P g appropriated to the University of California to be used solely for the Breast Sections 104420 and 104425 of the Health and Safety Code. less than forty percent(40%)of the funds for this program shall be used Cancer Research Program provided for in Article I (commencing with (6) Two and one fourths percent(2.25%)shall be deposited in the Provisions contained in Section 1046the Health and Safety Code. Section 104145)of Chapter 2 of Part 1 of Division 103 of the Health and Tobacco Control Enforcement Sub-Account, which is hereby created.All (B) Thirty percent (30%) shallll b bee continuously appropriated to for those non-clinical public health components.Safety Code. funds in the Tobacco Control Enforcement Sub-Account shall be used solely the State Department of Education to be used solely to design, develop, (12) Forty-five and one-half percent(45.50%)of the Fund shall be 0 or programs to enforce tobacco-related statutes and policies,to enforce and support programs and activities to prevent obesity, diabetes and deposited in the California Healthy Kids Sub-Account, which is hereby (4) Fourteen and three fourths percent(14.75/0)shall be deposited f P S f P f chronic diseases through the promotion o,and access to,health eating createdto ensure that every childinCaliforniaiseligibleforcomprehensive, in a Cancer Research Sub-Account,which is hereby created.All funds in legal settlement provisions,and to conduct law enforcement training and g P f Y g affordable health insurance and has access to needed health care. All technical assistance activities,and shall be appropriated as follows: and physical activity for children and their families within the context of ff the Cancer Research Sub-Account shall be continuously appropriated pI'ro P f coordinated school health. Such programs and activities shall include moneys in the California Healthy Kids Sub-Account shall be continuously to the State Department of Health Services to be used solely for the (A) Fifty percent (50%) of the funds in the Tobacco Control but need not be limited to,promotion of,and access to,fruits, vegetables appropriated to the California Health and Human Services Agency only Cancer Research Program described in Section 104181 of the Health and Enforcement Sub-Account is continuously appropriated to the State and other healthy foods;promotion of moderate and vigorous physical for implementation by the State Department of Health Services and the Safety Code, with a focus on applied research, which includes but is not Department of Health Services to be used to support programs,including, activity;promotion of health education and physical education;research, Managed Risk Medical Insurance Board of Chapter 17(commencing with limited to, research that is geared towards the accelerated transfer of but not limited to:providing grants to local law enforcement agencies to surveillance and•evaluation of program effectiveness; professional Section 12693.99)of Part 6.2 of Division 2 of the Insurance Code pursuant recent laboratory and clinical technologic advances into primary care,, provide training andfundingfor the enforcement ofstate and local tobacco- development for teachers and other appropriate staff in health education to the provisions and restrictions thereof. No less than ninety percent public health and community settings so that the majority of California's related laws and policies,including, but not limited to the illegal sales of and physical education; and monitoring local educational agencies' (900%)of the funds appropriated from this Sub-Account shall be used for f population may benefit. This research should be focused on converting tobacco to minors,tobacco retailer licensing and exposure to secondhand compliance with state laws for nutrition and physical education. implementation of Section 12693.99 of the Insurance Code.No more than recent discoveries into interventions and technologies,proving that they smoke; and increasing investigative activities, compliance checks and ten percent(10%)of the funds appropriated from this Sub-Account shall work,and learning how best to apply them. other appropriate activities�to reduce illegal sales o tobacco products to (C) The State Department of Health Services, in consultation with g PP Yg f P be used for implementation of Section 12693.991 of the Insurance Code. 5 Eleven percent 11% shall be deposited in the Lung Cancer minors under the Stop Tobacco Access to Kids Enforcement(STAKE)Act, the State Department of Education,shall establish an Oversight Committee () P ( ) P g composed of 13 members selected for their expertise in nutrition,physical (c) To the Health Treatment and Services Account,which is hereby and Lung Disease Research Sub-Account, which is hereby created. All pursuant to Section 22952 of the Business and Professions Code. activity and education, and related disciplines pertinent to the purposes created,fifty-two and three fourths percent (52.75%), allocated to the funds deposited in the Lung Cancer and Lung Disease Research Sub- (B) Twenty-five percent(25%)of the funds in the Tobacco Control of this Sub-Account. Membership shall include, but need not be limited following Sub-Accounts for the purposes stated therein: Account shall be continuously appropriated to the University of California Enforcement Sub-Account is continuously appropriated to the California to,representation from the following:health and education organizations, (1) One and three fourths percent(1.75%) shall be deposited in a to be used solely to provide research grants to develop and advance Office of the Attorney General to be used for activities including, but public health and local education agencies, advocacy groups, and Tobacco Cessation Services Sub-Account, which is hereby created. All the understanding, causes, techniques, and modalities effective in the not limited to: enforcing laws that regulate the distribution and sale of healthcare professionals and organizations. funds in the Tobacco Cessation Services Sub-Account shall be continuously prevention,care,treatment,and cure of lung disease.For purposes of this cigarettes and other tobacco products,such as laws that prohibit cigarette appropriated to the State Department o Health Services to be used sole! Section, the lung disease research areas shall include, but not be limited smuggling,counterfeiting,selling untaxed tobacco,selling tobacco without The Oversight Committee shall advise the State Department of HealthP f Y to lung cancer,asthma, tuberculosis,and chronic obstructive pulmonary a proper license and selling tobacco to minors;enforcing tobacco-related Services and the State Department of Education with respect to policy to provide tobacco cessation programs and services to assist adult and 148 1 Text of Proposed Laws *** ***Text of Proposed Laws 1 149 I 1,. Uzi" -�, � .tl�TI1GA'&V •_ _— __--� TEXT OF PROPOSED LAWS * * * (PROPOSITION 86 CONTINUED) * * TEXT OF PROPOSED LAWS minor tobacco users to quit tobacco. It is the intent of this Act that this (A) Eighty-six percent(8691o)shall be used to support the expansion (C) The Child Health and Disability Prevention Program. screening guidelines of the U.S.Preventive Services Task Force. appropriation supports programs and services including, but not limited of California Board of Registered Nursing("BRN')-approved registered (c) It is the intent of the people of the State of California that the (b) After screening, medical referral of the screened person and to counseling, referral and support services, pharmaceutical tobacco nurse education' re-licensure programs in the California Communit I g f pp p P P gY Tobacco Tax Act of 2006 shall, in accordance with the purposes and services necessary for a definitive diagnosis. cessation products,and training and technical assistance activities. Colleges,the California State University and the University of California, intent of this Act,maximize,and not reduce,federal matching funds made (c) If a positive diagnosis is made, then assistance and advocacy (2) One and three fourths percent (I.75%)shall be deposited in a and to support the expansion of graduate nursing education programs available to the State for children's health coverage under Title XLYand/or shall be provided to help the person obtain necessary treatment. Prostate Cancer Treatment Sub-Account, which is hereby created. All (MSN, DNSc/Ph.D.), and to support California Advanced Practice Title XXI of the Social Security Act. (d) Necessary treatment in accordance with the most recent cancer funds in the Prostate Cancer Treatment Sub-Account shall be continuously Registered Nurse Programs at.the California State University and the (d) No state or local government agency shall consider the revenue treatment guidelines of the National Comprehensive Cancer Network. appropriated to the State Department of Health Services to be used solely University of California. supporting emergency services to hospitals provided by this Act in its to provide for prostate cancer prevention and treatment for low income (B) Fourteen percent(14%)shall be used to support the expansion determination of the amount or rate of payment to hospitals on behalf (e) Outreach and health education activities to ensure that uninsured and uninsured men. of BRN-approved privately operated registered nurse education pre- of patients who are government-sponsored or the responsibility of a and underinsured persons are aware of, and appropriately utilize, the OP ( o) P licensure programs,the expansion o rivatel operated graduate nursing services provided by the program. 3 Five and three-fourths percent 5 75/o shall be deposited in the P g P rP Y P g g governmental agency or body. CommunityClinics Uninsured Sub-Account,which is hereby created to education programs (MSN, DNSc/Ph.D.), and to support the expansion 1e col 3, The department shall award one t more contracts to Y o privately operated Cali ornia Advanced Practice Re tstered�Nurse 30132;6. Notwithstanding any other provision of law, money provide colorectal cancer screening and treatment through private or fund nonprofit clinic corporations providing vital health care service .f P Y P f g deposited in the Tobacco Tax of 2006 Trust Fund may not be loaned to, Programs. public nonprofit organizations,which may include,but shall not be limited to the uninsured in accordance with Article 6 (commencing with g or borrowed by,any other special fund or the General Fund,or a county to, community-based organizations, local health care providers, and the a Section 1246)of Chapter I of Division 2 of the Health and Safety Code. (7) Seventy-four and one-hay-percent (74.50%) to the Emergency general fund or any other county fund,for any purpose other than those 3 University of California medical centers. All funds in the Community Clinics Uninsured Sub-Account shall be and Trauma Hospital Services Sub-Account,which is hereby created.All authorized by the Tobacco Tax Act of 2006. continuously appropriated to the State Department of Health Services funds in the Emergency and Trauma Hospital Services Sub-Account 30132.7. Due to the necessity to rapidly and efficiently implement SEC.5. Heart Disease and Stroke Prevention Program solely for implementation ofArticle 6(commencing with Section 1246) shall be continuously appropriated to the State Department of Health Section 104142 is added to Chapter 1 of Part 1 of Division 103 of the the mandates of the Tobacco Tax Act of 2006,any contract made pursuant of Chapter I of Division 2 of the Health and Safety Code. Services to further the provision of hospital and medical services to Health and Safety Code,to read: to paragraphs (7) through (Il) of subdivision (b), and paragraph (4)(i) Five and three fourthspercent(5.75%)to the Emergency Care emergency patients in California pursuant to Chapter 4.5(commencing (2) of subdivision (c) of Section 30132.3, shall not be subject to Part 2 104142. The California Heart Disease and Stroke Prevention Physician Services Sub-Account,which is hereby created.All funds in the with Section 1797.300)of Division 2.5 of the Health and Safety Code. (commencing with Section 10100)of the Public Contract Code for the first Program (CHDSP) is hereby created in the State Department of-Health Emergency Care Physician Services Sub-Account shall be continuously 30132.4. All moneys allocated to and deposited in the specific five ful/years after enactment. Services. The CHDSP program that is hereby created is consistent with appropriated to the State Department ofHealth Services to be administered Accounts and Sub-Accounts of the Tobacco Tax of 2006 Trust Fund shall 30132.8. At least two percent (2%) of the money appropriated the existing CHDSP program within the department and shall not be and allocated for distribution through the California Healthcare for be expended as set forth pursuant to the requirements specific to each duplicated by another cardiovascular disease(CVD)program. to the State Department of Health Services pursuant to paragraphs (1) Indigents Program(CHIP), Chapter 5(commencing with Section 16940) Account or Sub-Account as set forth in Section 30132.3. Notwithstanding through(4)and paragraph(6)of subdivision(b)of Section 30132.3,and (a) The CHDSP program shall do, but is not limited to, all of the of Part 4.7 of Division 9 of the Welfare and Institutions Code. Government Code Section 13340,any moneys allocated and appropriated paragraph(1)ofsubdivision(c)of Section 30132.3,shall be used solely for following: (ii) Three fourths percent (0.75%) to the Rural Emergency Care to any of the Accounts or Sub-Accounts of the Tobacco Tax of 2006 Trust administration of the department's tobacco control programs. (1) Conduct programs to prevent and reduce risk factors for CVD Physician Services Sub-Account which_is hereby created. All funds in Fund that are not encumbered or expended within any applicable period including, but not limited to, high blood pressure, as'provided or in Y f 30132.9. Moneys in the Tobacco Tax o 2006 Trust Fund and an g g P P .f Y Y f Y the Rural Emergency Care Physician Services Sub-Account shall be prescribed by law shall,together with the accrued interest on the amount, Section 104100,and high cholesterol. g Y Y Account or Sub-Account therein,may be used to maximizefederalmatching g continuously appropriated to the State Department of Health Services to revert to and remain in the same Account orSub-Accountfor encumbrance funds,so long as all moneys are expended in a manner fully consistent with (2) Design, implement, and support programs to improve disease be administered and allocated for distribution through the Rural Health and expenditure for the next fiscal period. the Tobacco Tax Act of 2006. treatment and management,including quality of care for CVD. Services Program (RHSP), Chapter 4(commencing with Section 16930) 30132.5. (a) All moneys raised pursuant to the tax imposed by of Part 4.7 of Division 9 of the Welfare and Institutions Code. Section 30132.1,and all moneys raised by the resulting increase in the tax 30132.10. To provide full public accountability concerning the uses (3) Promote and support medical professional development for the on tobacco roducts required b subdivision b o Section 30123,shall be to which moneys in the Tobacco Tax of 2006 Trust Fund are put, and to prevention and treatment of CVD. (iii) Funds allocated to the Emergency Care Physician Services P q Y () f ensure full compliance with the Tobacco Tax Act of 2006: 4 Collect, analyze, and publish data on CVD, which may include Sub-Account and Rural Emergency Care Physician Services Sub-Account appropriated and expended only for the purposes expressed in this Act. () Y P Y shall be used only for reimbursement of physicians for losses incurred Funds appropriated pursuant to this Act shall be used only to supplement (a) Beginning with the first full fiscal year after the adoption of the the establishment of a heart disease and stroke registry to track the existing levels o service and not to supplant funding or existing levels Tobacco Tax Act of 2006, and annually thereafter, the State Department incidence and prevalence of CVD. hproviding uncompensated emergency services in general acute care g f PP f gf g o Health Services shall prepare a report describing all ro rams that hospitals providing basic,comprehensive,or standby emergency services, of service. Funds may be used to match available state,federal, or local f P P P g programs (5) Guide the development ofpublic health policies,including linkages as defined in Section 16953 of the Welfare and Institutions Code. Funds funds. Except as'specified in subdivision (b), no moneys in the Tobacco received Tobacco Tax of 2006 Trust Fund moneys in the previous fiscal with appropriate state agencies,to improve health outcomes from CVD. shall be transferred annually by the Department to the Physician'Services Tax o 2006 Trust Fund shall be used to supplant state or local General year, and describing in detail the uses r which fund moneys were put f pp (6) Conduct a statewide public education campaign that focuses on the Fund mono or an purpose,including back-fillingstate or local General during the previous fiscal year. This report shall be made available to the Accounts in the county Emergency Medical Services Fund established Yf YP P g incidence,signs,symptoms,and risk factor reduction strategies for CVD. Fund obligations. public on the department's web site,no later than March 31. pursuant to Sections 16951 and 16952 of the Welfare and Institutions g - b All programs and departments receiving moves from the (b) The department shall consider, as a .priority, the � • (J P g P g Y f Code,and shall be paid only to physicians who directly provide emergency (b) In addition to the provisions of subdivision (a), all moneys. recommendations of the Heart Disease and Stroke Prevention and • • medical services to patients, based on claims submitted or a subsequent raised pursuant to the tax imposed by Section 30132.1, and all moneys Tobacco Tax of 2006 Trust Fund are subject to audits by the Bureau of Treatment Task Force,as provided for in Section 104141. reconciliation of claims.Payments shall be made as provided in Sections raised by the resulting increase in the tax on tobacco products required by State Audits. 16951 to 16959, inclusive, o the Welfare and Institutions Code, and subdivision b o Section 30123,shall not supplant the following: c No more than five percent 5% o the funds appropriated to an (c) The department may authorize CVD research, including pilot f () f .f g� () .� P ( ) f fy demonstration projects. payments shall be made on an equitable basis, without preference to 1 Local funds used to secure state or federal matching funds or Account or Sub-Account created by the Tobacco Tax Act of 2006 may be O .f f g f f (d) Nothing in this section shall duplicate other programs in the any particular physician or group of physicians. Funds allocated by any children's health services, children's health, or medical assistance used for administration, unless a lower amount is specified elsewhere in department. this Section to counties that have not established an Emergency Medical programs,including but not limited to,the following:(A)Healthy Families, this Act. Services Fund pursuant to Section 16951 shall be deposited into the (B)Medi-Cal,whether full-scope or emergency or pregnancy-related care SEC.4. Article 2.7(commencing with Section 104193)is added to SEC.6. Chapter 17(commencing with Section 12693.99)is added Department of Health Services EMSA Contract Back Program,to be used only,and(C)the Child Health and Disability Prevention Program;but not Chapter 2 of Part 1 of Division 10.3 of the Health and Safety Code,to read: to Part 6.2 of Division 2 of the Insurance Code,to read: only for the reimbursement of uncompensated emergency services, as including funds generated by or expended from the California Children defined in Section 16953,and payments made,based on claims submitted, and Families Trust Fund(Division 108(commencing with Section 130100) Article 2.7. Colorectal Cancer Prevention,Detection, in accordance with the procedures and policies established in Sections of the Health and Safety Code) or from the County Health Initiative 'Wand Treatment CHAPTER 17 CHILDREN'S HEALTH 16952 through 16959 of the Welfare and Institutions Code. Matching Fund(Part 6.4(commencing with Section 12699.50)of Division 12693.99. (a) To ensure that every child in California is eligible (5) Three fourths percent (0.7511o) to the Medically Underserved 2 of the Insurance Code); 104195. The Colorectal Cancer Prevention, Detection, and for comprehensive,affordable health insurance and has access to needed Account created by Business and Professions Code section 2154.4. (2) State funds used to secure federal matching funds for any Treatment Program shall be established within the State Department of health care, all children described in subdivision(b)shall be eligible for All funds in.the Medically Underserved Account shall be continuously children's health services, children's health, or medical assistance Health Services. the California Healthy Families Program (Part 6.2 (commencing with appropriated to the Medical Board of California to promote the practice programs,including but not limited to the following: 104195.1. The program shall apply to both of the following groups: Section 12693)of Division 2 of the Insurance Code(hereinafter "Healthy j of medicine in areas of the state underserved by physicians to low- (A) Healthy Families, (a) Uninsured and underinsured persons 50 years of age and older Families'). income patients pursuant to the Steven M. Thompson Physician Corps ' (B) Medi-Cal, whether full-scope.or emergency or pregnancy- with incomes at or below two hundred percent (200%) of the federal (b) All children under l9yearsofage shall be eligiblefo�r the services Loan Repayment Program 'set forth in Article 7.7 (commencing with related care only,and poverty level. and benefits provided under this Chapter,notwithstanding paragraph(4) Section 2154)of Chapter 5 ofDivision 2 of the Business and Professions i of subdivision (a)of Section 12693.70 and Section 12693.73, if they meet Code. (C) The Child Health and Disability Prevention Program;or (b) Uninsured and underinsured persons below 50 years of age i. 3 unds to continue or maintain the amount,duration, who are at high risk for colorectal cancer according to the most recently all of the following: j (6) Nine percent (9%) to the Nursing Workforce O State orederalf Education Sub- f sco e and structure o benefits that existed as o September 30, 2005 or published colorectal cancer screening guidelines of the U.S. Preventive (1) Are in families.with countable household income up to and Account, which is hereby created. All funds in the Nursing Workforce scope .f � .f P f � Education Sub-Account shall be continuously appropriated to the Office any children's health services, children's health, or medical assistance Services Task Force and who have incomes at or below two hundred including 300 percent of the federal poverty level.In a family with annual of Statewide Health Planning and Development to be used solely to programs,including but not limited to the following: percent(20001o)of the federal poverty level. or monthly household income greater than 300 percent of the federal expand nursing education opportunities and capabilities to meet nursing (A) Healthy Families, 104195.2. Services provided under this,Article shall include, but poverty'level, any income deduction that is applicable under Medi-Cal c are not limited to,all of the following: shall be applied in determining annual or monthly household income workforce demands pursuant to Section 128225.5 of the Health and Safety (B) Medi-Cal, whether full-scope or emergency or pregnancy- under this Section; Code.Expenditures from the Nursing Workforce Education Sub-Account related care only,and (a) Screening of men and women for colorectal cancer as an early shall be made according to the following formula: detection health care measure,in accordance with the most recent cancer (2) Meet the state residency requirements of Healthy Families in 150 1 Text of Proposed Laws*** ***Text of Proposed Laws 1 151 TEXT OF PROPOSED LAWS * * * (PROPOSITION 86 CONTINUED) * * *TEXT OF PROPOSED LAWS place as of September 30,2005,as set forth in paragraph(5)ofsubdivision (1) Simplify paperwork requirements for families to enroll their (E) Other stakeholdgrs,including but not limited to schools,business related care only;and (a)of Section 12693.70; children and retain coverage as long as they remain eligible by requesting and organized labor,and county agencies. Are Nance with Sections 12693.71 and 12693.72;and documentation and verifying information only to the extent required under (3)) The Child Health and Disability Prevention Program. (3) A in compliance (2) The Speaker of the Assembly,the Senate President Pro Tempore, (3) State orfederal funds to continue or maintain the amount,duration, (4) Are not eligible for Healthy Families,or for full-scope Medi-Cal federal law. and the Governor shall each appoint five commissioners such that each scope and structure of benefits that existed as of September 30,2005 for any Cha ter 7(commencingat Section 14000 o Part 3 o Division 9 o the (2) Expedite and streamline enrollment by offering enrollment, appoints one commissioner from each o the five categories.(Chapter P ) f f f which may be known as "express lane"or"gateway"enrollment,through PP f f fi g children's health services,children's health,or medical assistanceprograms, Welfare and Institutions Code)without a share of cost,under the eligibility Y P g Y g (3) Members shall serve without compensation, but shall be including but not limited to the following: rules in f Se lace as o September 30,2005. entry points such as the National School Lunch Program, the California p p reimbursed for all actual and necessary expenses incurred in the (A) Healthy Families; (c) The confidentiality and privacy protections set forth in Sections Supplemental Special Nutrition Programfor Women,Infants and Children, performance of their duties. 10500 and 14100.2 o the Wet are and Institutions Code shall apply to all the Food Stamp Program,and the Child Health and Disability Prevention (B) Medi-Cal, whether full-scope or emergency or pregnancy- f f pp y (4) The term ofeach member shall be three years,to be staggered so related care only;and children seeking,a 1 in or or enrolled in Health Families. Program or similar programs; by utilizing the enrollment information g PP Y gf Y provided b families to these other programs, with families'consent and that approximately one-third of the appointments expire in each year. p y f p g f (C) The Child Health and Disability Prevention Program. (d) Families of children enrolled in Healthy Families through this ensuringconfidentiality pursuant to subdivision c o Section 12693.99 (5) In carrying out its duties and responsibilities, the Commission Chapter shall be required to contribute premiums equal to those required fi Y P () f may do all o the following: (c) The state may not increase a county's share of costs for children's for all children seeking,applying for,and enrolled in Healthy Families or Y r f g health services unless the state includes adequate funding to fully of families of children enrolled in Healthy Families not through this Medi-Cal;and b implementing an electronic gateway system to process A Meet at least once each quarter at an time and location Chapter,subject to the following exceptions: Y P g g Y y P () q y compensate for such increased costs. that enrollment. convenient to the public as it may deem appropriate.All meetings of the 12693.993. (a) Nothing in this Chapter is intended to: (1) Families ofchildren up to and including 18 years ofage who apply 3 Developa lan'to ensure that eligible, enrolled children do not Commission shall be open to the public. for or are enrolled in Healthy Families and whose countable household experience a gap benefits and to ensureontinuit o medical care or B Establish technical advisor committees such as a committee o (1) Reduce or restrict any existing entitlement under Medi-Cal; P gP Y f f ( ) Y r incomes are up to and including 100 percent of the federal poverty level children when renewing or transferring between Medi-Cal and Healthy parents and guardians. (2) Reduce or restrict the existing eligibility levels or the amount, shall not be required to contribute any premiums;families of children up Families,or from a local children's health insurance program(hereinafter (C) Advise the Governor and the Legislature regarding actions the duration,scope or structure of benefits in place as of September 30,2005 to one year of age who apply for or are enrolled in Healthy Families and "local CHI". The plan shall include simplifyingrenewal orms and under either Healthy Families or Medi-Cal; whose countable household incomes are a to and including 200 percent o ) P f state may take to improve access to,enrollment in,retention of,and use of P g P f renewal and transition processes. health covera (3) Create a new entitlement for children enrolled in Healthy the federal poverty level shall not be required to contribute any premiums; coverage for children and their families. (4) Facilitate outreach and education to current and potential (D) Recommend strategies to increase the ,efficiency of Medi- Families; and families of children up to and including six years of age who apply beneficiaries,applicants,health care providers,and insurers. 4 Preclude a child from eli ibilit or an other children's health or or are enrolled in Health Families and whose countable household fi PP P Cal and Healthy Families, reduce paperwork requirements for benefit () f g Yf y f y 5 In coordination with the Health Kids Oversight and administration, and implement electronic gateways and other "express insurance,medical service or medical assistance program,including but incomes are up i and including 133 percent of the federal poverty level O Y g P g y P not limited to restricted Medi-Cal or Medi-Cal with a share o cost; shall not be required to contribute any premiums. Accountability Commission, and while preserving confidentiality in lanes"for increasing enrollment. f (2) Families of children who are enrolled in Healthy Families whose accordance with subdivision(c) of Section 12693.99, undertake a pilot (E) Recommend strategies for transitioning children among and (5) Preclude a child from eligibility for Healthy Families or Medi- research demonstration project to test effective strategies,and gather data between local CHIs,Medi-Cal and Healthy Families. Cal if less restrictive eligibility criteria are enacted; countable household incomes are greater than 250 percent and up to and about the impact of specific efforts, to increase coverage for uninsured including 300 percent of the federal poverty level shall be required to (F) Recommend voluntary strategies with employers to maintain or (6) Reduce or erode children's existing employer-sponsored health children in families with incomes above 300 percent of the federal poverty increase employer-sponsored health coves a or employees'de dependents insurance coverage; contribute premiums at 150 percent of the premiums required for childreng fP level;and recommend to the Legislature strategies for increasing coverage under the age o 19 ears. (7) Restrict any public appropriations or rivate contributions or who are enrolled in Healthy Families whose countable household incomes g .r YP f for this population based upon the pilot research demonstration project the provision o children's health insurance through Medi-Cal or Health are greater than 200 percent and up to and including 250 percent of the (G) Provide guidance in the development of the pilot research P f g y demonstration project for pursuing affordable health insurance or results. Families, such as federal financial match for state or county Medi-Cal federal poverty level. The same premium discounts available to children enrolled in Healthy Families whose families have countable incomes of (6) In coordination with the Healthy Kids Oversight and assistance options for uninsured children whose families have incomes funding;county,regional or local funding private foundation grants,and 200 through 250 percent of the federal poverty level shall be available on Accountability Commission,design and implement a process for ensuring over 300 percent of the federal poverty level and, based on the results of family premium contributions; the same terms to children enrolled in Healthy Families whose families' a smooth transition for local CHI enrollees to Healthy Families. The the pilot research projects, recommend to the Legislature strategies for (8) Prohibit eligibility for Medi-Cal or Healthy Families based on countable incomes are greater than 250 percent of the federal poverty transition shall provide that any child who applies for and is determined increasing coverage for this population. concurrent eligibility for a local CHI;nor level. eligible for Healthy Families pursuant to this Chapter,and who is enrolled in a local CHI both as of enactment of this Chapter and as of his or her (H) Study the adequacy of the provider network and seek broad (9) Create or require creation of a new state department or agency. (e) Less restrictive Healthy Families eligibility requirements than participation from traditional and safety-net providers by recommending (b) The State Department o Health Ser>ices and the Managed Risk Healthy Families eligibility determination, shall be automatically rolled P f g those established at subdivision(b)may be established by the Legislature strategies to ensure adequate provider reimbursement rates. Medical Insurance Board may explore and utilize any options available at any time before or after adoption of this Section. If the Legislature over into his or her existing local CHI health plan under Healthy Families, if the health plan is a participating plan in Healthy Families. For good (I) Employ all other appropriate strategies necessary or convenient under federal law to allow the use of chdritable or other funding by private adopts less restrictive eligibility criteria for Healthy Families at any time, cause or upon the child's next annual renewal, a child may switch plans to enable it to fully and adequately perform its duties and exercise the" and public not-for-profit organizations as a match for federal funds for use such a change shall supersede the eligibility requirements,of this Section. powers ex ressl ranted. in the provision o coverage consisent with the provisions o this Chapter. • or otherwise remain in his or her existing plan.Nothing in this paragraph P P Y g P fP f P • • • Nothing in this Section shall preclude a child from eligibility for Medi-Cal • • or Healthy Families if less restrictive eligibility criteria are enacted.For e intended to delay immediate implementation of this Chapter, including 12693.992. (a) For the purposes specified in this Chapter and SEC. 7. Article 6 (commencing with Section 1246) is added to purposes of this subdivision, requirements or criteria are considered to eligibility for Healthy Families. subject to Section 30132.5 of the Revenue and Taxation Code, funds Chapter I of Division 2 of the Health and Safety Code,to read: be "less restrictive"if, under such requirements or criteria, additional (7) Maximizefederal matchingfunds availablefor eligible children's appropriated from the California Healthy Kids Sub-Account established individuals may be eligible for medical assistance and no individuals who health insurance under Medi-Cal and Healthy Families and implement at paragraph(12)ofsubdivision(b)of Section 30132.3 of the Revenue and are otherwise eligible are made ineligible for such assistance. strategies that coordinate and integrate existing children Taxation Code shall be used onlY.for: Article 6. Community Clinics 's health insurance 12693.991. (a) The Managed Risk Medical Insurance Board and programs to maximize available federal and state matching funds,such as (1) The provision of children's health insurance, through Healthy 1246. (a) Funds in the Community Clinics Uninsured Sub-Account the State Department of Health Services (hereinafter "administering matching funds available for emergency or pregnancy-related Medi-CalFamilies,only for children defined in subdivision(b)of Section 12693.99;benefits,for all eligible children. and established at paragraph (3)of subdivision (c)of Section 30132.3 of the agencies')shall continue to administer the Healthy Families and Medi-Cal Revenue and Taxation Code shall be administered by the State Department programs,respectively,forall eligible children:The administering agencies (8) Take any additional steps necessary to ensure that from a child's (2) Implementation of those measures contained in Section , of Health Services solely for the purposes of this Section. The department shall coordinate their respective administrations of each program in a perspective,Medi-Cal and Healthy Families operate as asingleprogram. 12693.991. shallallocatethefundsfor eligible non-profit clinic corporationsproviding cost-effective, coordinated and seamless manner with respect to children (c) The Healthy Kids Oversight and Accountability Commission I (b)Funds expended or transferred from the California Healthy Kids vital health care services,including services related to smoking cessation seeking, applying for or enrolled in Medi-Cal or Healthy Families. Both is hereby established to guide the implementation and administration of Sub-Account shall supplement and not supplant the following: programs to assist smokers to quitsmoking,and educational efforts related administering agencies shall coordinate enrollment, renewal, eligibility, this Chapter; advise the administering agencies on how best to provide (1) Local funds used to secure state or federal matching funds for to tobacco prevention,to the uninsured.The funds shall be allocated by the and outreach,and shall assign clearlines ofresponsibilityfor all associated affordable health insurance for all children;review financial audits of the any children's health services, children's health, or medical assistance Department pursuant to the provisions of this Section. agency activities with enforceable accountability.Implementation ofduties children's Medi-Cal and Healthy Families programs by the Bureau of State programs,including but not limited to the following:(A)Healthy Families; (b) Annually, commencing August 1, 2007, the Department shall and responsibilities that require the participation of both agencies shall be Audits; and identify inefficient practices or waste in the administration (B)Medi-Cal,whether full-scope or emergency or pregnancy-related care allocate to each eligible non-profit clinic corporation a percentage of the done jointly,as coordinated between them by agreement. or operation of Healthy Families and Medi-Cal and direct anticipated only;and(C)the Child Health and Disability Prevention Program;but not balance present in the Community Clinics Uninsured Sub-Account as of (b) The administering agencies, in consultation with the Healthy savings back into providing health insurance for more children. including funds generated by or expended from the California Children July 1 of the year the allocations are made based on the formula provided Kids Oversight and Accountability Commission, shall design and (1) The Commission shall consist of 15 members with expertise in and Families Trust Fund(Division 108(commencing at Section 130100)of for in subdivision(c)and subject to subdivision(d). implement streamlined application,enrollment and retention procedures children's health, health insurance and health insurance programs, and the Health and Safety Code)orfrom the County Health Initiative Matching (c) Funds in the Community Clinics Uninsured Sub-Account shall, and mechanisms for all benefits available under Healthy Families shall include representatives from the following categories: Fund(Part 6.4(commencing with Section 12699.50)of Division 2 of the be allocated only to eligible non-profit clinic corporations. Funds in the and Medi-Cal. From the child's perspective there shall appear to be (A) Consumers; Insurance Code). Community Clinics Uninsured Sub-Account shall be allocated to eligible a single program, though the details are handled by two programs and (B) Consumer advocates,including representatives of specific child (2) State funds used to secure federal matching funds for any non-profit clinic corporations on a percentage basis based on the total administering agencies. The administering agencies shall implement populations; children's health services, children's health, or medical assistance number of uninsured patient encounters. strategies including at least the following to ensure that all children who programs,including but not limited to the following: 1 For purposes o this Section, an "eligible non-profit clinic are eli ible or Health Families or Medi-Cal under the eligibility rules in (C) Health care providers, including physicians and public programs, . P P f g g ./� Y g Y (A) Healthy Families; corporation"shall meet both of the following requirements: place on September 30,2005,and all children who are eligible for Healthy hospitals; Families under this Chapter,receive health insurance: (D) Health plans,including local CHIs;and (B) Medi-Cal; whether full-scope or emergency or pregnancy- (A) The corporation shall consist of non-profit free and community 152 1 Text of Proposed Laws*** ***Text of Proposed_Laws 1 153 I a TEXT OF PROPOSED LAWS * * * (rROPOSIT1ON 86 CONTINUED) *TEXT OF PROPOSED LAWS 30 da s rom the date the notice is received to provide the de artment with reduce the allocation to all other eligible hospitals pro rata. clinics licensed pursuant to subdivision (a).of Section 1204 or of clinics Nursing Workforce Education Sub-Account created by paragraph (6) of Y f p p g P operated by a federally recognized Indian tribe or tribal organization and subdivision (c) of Section 30132.3 of the Revenue and Taxation Code.A correct,complete and legible information.Such corrected or supplemental 1797.302. (a) Each hospital seeking designation as an eligible exempt from licensure pursuant to subdivision(c)ofSeetion 1206. state nursing contractprogram with accredited schools and programs that information shall be used by the department to make the calculation hospital shall submit the following information to the department by no (B)' The corporation must provide at least 1,000 uninsured patient educate students seeking degrees in nursing, including associate degree required by subdivision(a),but shall be subject to audit under subdivision later than February 15 of each year, commencing the first February 15 encounters based on data submitted to the Office of Statewide Health programs ('ADN'), bachelor of science degree programs (`BSN'), (f). A hospital that does not provide sufficient legible information to following the operative date of this Act: master's degree programs MSN" programs or Advanced Practice establish that it quakes as an eligible hospital or to allow the department Planning and Development pursuant to the reporting procedures g P g (� )• P g / (1) The number ofemergency department encounters that tookplace Registered Nurses, and higher graduate nursing education programs to make the calculation required under subdivision (a) shall not be an established under Section 1216for the year the allocations are made. g g g g p g in the hospital's emergency department during the preceding calendar DNSc/Ph.D.', shall be developed to create, expand and improve eligible hospital. (2) The total number of uninsured patient encounters shall be based ( ) P P P year; on data submitted by each eligible non-profit clinic corporation to the Office Programs to educate students to become practicing registered nurses, (e) The department may enter into an agreement with the Office (2) The total amount of charity care costs of the hospital for the of Statewide Health Planning and Development pursuant to the reporting nurses with advanced clinical skills, nurse managers, and faculty for of Statewide Health Planning and Development or another state agency preceding calendar year; schools of nursing.Priority shall be given to programs that increase the or private party to assist it in analyzing information reported by eligible procedures established'under Section 1216.Beginning August I,2007 and (3) The total amount of bad-debt costs of the hospital for the number and types of nursing student graduates and educators most likely hospitals and making the hospital funding allocation computations as every year thereafter,the allocations shall be made by the department based preceding calendar year; to meet the slate's most pressing needs for registered nurses. provided under this Chapter. on data submitted by each eligible non-profit clinic corporation to the Office (4) The total amount of county indigent program effort costs of the o Statewide Health Planning and Development b February 15 o the year (b) The California Healthcare Workforce Policy Commission shall 69 To ensure that the funds received by hospitals'are utilized for f g p y y f y hospital for the preceding calendar year; the allocations are made. recommend to the director the California Board of Registered Nursing the purpose specified in this Article, the department shall audit the use ('BRN')-approved registered nurse education programs and California by eligible hospitals of any funds received pursuant to Section 1797.304, (5) Ifrequested,a photocopy of the hospital's operating licensefrom (3) For purposes of this Section, except as otherwise provided f P P the State Department o Health Services or equivalent documentation in paragraph (4), an uninsured patient encounter shall be defined as graduate"nursing education programs (MSN, DNSc/Ph.D.) that shall and the accuracyo data on emergencyde department patient encounters P f 9 be funded under subdivision (a). For purposes of this section the term and other information any hospital reports under this Article,as follows: establishing that it operates a licensed emergency department; an encounter for which the patient has no public or private third party 'Advanced Practice Registered Nurse Programs"refers to programs that the department shall randomly select twenty percent(2011o)of all eligible (6) A declaration of commitment to provide emergency services and coverage. An uninsured patient encounter shall also include encounters educate nurses with advanced clinical skills,including,but not limited to, hospitals each year for audit of the information they submit.Additionally, training as required by subdivision(a)of Section 1797.303. involving patients in programs operated by counties pursuant to Part 4.7 (commencing with Section 16900)and Part 5(commencing with Section nurse anesthetists, clinical nurse specialists,.nurse practitioners, nurse the department may conduct afield audit of the use offunds or information (b) Both pediatric and adult patients shall be included in the data midwives,and public health nurses. submitted by any hospital. If the department determines upon audit that submitted. The accuracy of the data shall be attested to in writing by an 17000)of Division 9 of the Welfare and Institutions Code.An uninsured an funds received were improperlyused, or that inaccurate data were P ffi f patient encounter must consist of a primary and preventive health care Section 128225.5 is added to the Health and Safety Code,to read: any authorized senior hospital official. No other data or information shall to reported by the eligible hospital resulted in an allocation of excess funds be required by-the department to be reported by eligible hospitals for service, including tobacco cessation and prevention services, and 128225.5. The director shall utilize the funds appropriated to the eligible hospital, the department shall recover any excess amounts o ter. specialty care services traditionally provided by comprehensive primary implement the recommendations of the California Healthcare Workforce purposes Poses f this Chapter. allocated to, or any funds improperly used by, the eligible hospital. The care providers. Policy Commission pursuant to Section 128224.5„ and to reimburse the o (c) Each hospital seeking status as of eligible hospital under department may impose a fine of not more than twenty-five percent(25/0) (4) Each uninsured patient encounter shall count as one encounter, office and the commission for all reasonable,actual,direct administrative ojanunds received by the eligible hospital that were improperly used,•or this Chapter that receives a preponderance pails revenue from a single yf except that the encounters involving patients in programs operated costs incurred to implement this Section,not to exceed one percent 0%)of the department may impose a fine of not more than two times any amounts associated comprehensive group practice prepayment health care service pursuant toparagraph(1)ofsubdivision(aa)of Section 14132 and Division the amount deposited into the Nursing Workforce Education Sub-Account y g. p. f.fi plan shall report information required ll this section for all patients,and improperlyused or received b the eligible hospital i it nds such amounts 24(commencing with Section 24000)of the Welfare and Institutions Code, for the same period. The director shall utilize all funds appropriated to thenot just for patients who are not enrolled in an associated health care and ursuant'to Article 6(commencing with Section 124025 o Chapter extent reasonably possible. To the extent any funds appropriated are not were the result engross negligence or intentional misconduct in reporting service plan. p ( g ) f p data or improperly using allocated funds under this Article on the part 3 of Part 2 of Division 106 of the Health and Safety Code shall count as utilized,or after being committed are returned or remain unspent for any of the hospital. Any fines imposed by the department shall be stayed if 1797.303. (a) An eligible hospital shall,throughout each calendar 6.15 encounter for purposes of determining the total number of uninsured reason,such funds shall remain in or shall be re-deposited into the Nursing appealed by the hospital pursuant to subdivision (g)until judgment by a quarter in which it receives an allocation pursuant to Section 1797.304: patient encounters for each eligible non-profit clinic corporation. Workforce Education Sub-Account for appropriation and use for the same court offinal jurisdiction.In no event shall a hospital be subject to multiple (1) Maintain an operational emergency department available within (5) The Department shall compute each eligible non-profit clinic Purpose as provided in paragraphs(6)(A)or(6)(B)of subdivision(c)of penalties for both improperly using and receiving the same funds. its capabilities and licensure to provide emergency care and treatment,as Section 30132.3 of the Revenue and Taxation Code,as appropriate. ] A licensed hospital owner shall have the ri ht'to appeal re uired b law,to an pediatric or adult member o the public who has an corporation's percentage of total uninsured patient encounters for (g)() p' g pp q Y YP ./� all eligible non-profit clinic corporations. The Department shall then SEC.9. Emergency and Trauma Hospital Services the imposition of any fine by the department, or a determination by the emergency medical condition. apply these percentages to the available funds in the Sub-Account to Chapter 4.5(commencing with Section 1797.300)is addedto Division department that its hospital is not an eligible hospital,for any reason, (2) Do all of the following: compute a preliminary allocation amount for each eligible non-profit 2.5 of the Health and Safety Code,to read: or an alleged computational or typographical error by the department (A) Participate in a minimum of two y g alsaster-trainin exercises Clinic corporation.Final allocation amounts will be created pursuant to resulting in an incorrect allocation offunds to its hospital under Section annually; paragraph(6). — CHAPTER 4.5. HOSPITAL EYIERGENCY SERVICES 1797.304.A hospital shall not be entitled.to be reclassified as an eligible. (B) Provide training and information as appropriate to the hospital's (6) Final allocation amounts shall be determined as follows: Article 1. The Emergency and Trauma Hospital Services. hospital or to have an increase in funds received under this Chapter based medical staff,nurses,technicians and administrative personnel regarding • (A) If the preliminary allocation for an eligible non-profit clinic Sub-Account P upon subsequent corrections to its own final reporting of incorrect data the identification, management, and reporting of emergency medical corporation is equal to or less than twenty-five thousand dollars($25,000), used to determine funding allocations under this Article: conditions and communicable diseases, as well as triage procedures in / the allocation for that eligible non-profit corporation shall be twenty-five 1797.300. To support the public's need for hospital emergency (2) Any such appeal shall be heard before an administrative law cases of mass casualties; thousand dollars($25,000). services,the department shalladminister unds made available to hospitals judge employed by the Office of Administrative Hearings. The hearing C Collaborate with state and local emergency P f p ( ) g y medical services (B) For all eligible non-profit clinic corporations with preliminary for such services as provided by this Chapter. shall be held in accordance with Chapter 5 (commencing with Section agencies and public health authorities in establishing communications allocations o more than twenty-five thousand dollars $25,000, 11500) of Part 1 of Division 3 of Title 2 of the Government Code. The procedures in preparation or and during a-disastersituation;and f ( ) 1797.301. (a) The decision of the administrative law judge shall be in writing;shall include P P P f g the Department shall compute each such eligible non-profit clinic funding percentage to be used for the next calendar year based upon the (D) Establish and maintain an emergency and disaster management corporation's percentage o the total uninsured patient encounters and findings offact and conclusions of law;shall be final;and shall be subject P P g f P information submitted by such hospital pursuant to Section 1797.302 and plan. This plan shall include response preparations to care for victims of apply the percentage to the remaining funds available to determine the d appeal the provided by Section dges shall the Government Code. The PPY P g g f notify each eligible hospital of its proposed funding percentage no later terrorist attacks and other disasters. The plan shall be made available by final allocation amountfor each such eligible non-profit clinic corporation, than June 15 of each calendar year. decision of the administrative law judge shall be made within 60 days after the hospital forpublic inspection. subject to subparagraph(c). - the conclusion of the hearing and shall be effective upon filing and service' (b) The department shall receive and review the accuracy and upon the petitioner. (b) It is the policy of the state to encourage hospitals to work (C) No eligible non-profit clinic corporation shall receive an completeness of information submitted by eligible hospitals pursuant to cooperatively to develop regional plans for assuring maximum availability allocation in excess,o two percent 2% o the total monies distributed (3) The appeal rights of hospitals under this subdivision (g)shall .f P ( ) .f Section 1797.302. The department shall develop a standard form to be ofemergency services to all patients,and to share equitably in the provision to all eligible non-profit clinic corporations in that year.Allocations that utilized for reporting such information by eligible hospitals, but shall not be interpreted to preclude any other legal or equitable relief that may of emergency services to uninsured and low income underinsured patients are subject to the two percent 2% limit shall be reallocated to those be available. J P ( ) accept information from eligible hospitals that is not reported on such in achieving such maximum availability of emergency services. other eligible non-profit clinic corporations receiving allocations under standard f p p P to department form. The de shall allow hospitals report such (h) Any fines or other recoveries collected by the department shall (]) Each hospital receiving funds under this Chapter that operates Sub- subparagraph(B)utilizing the methodology in paragraphs(3)and(4),but information electronically no later than April 30,2008. be deposited in the Emergency and Trauma Hospital Services Sub- f y p a basic or comprehensive licensed emergency department may participate provided that reallocations shall not make any final allocation surpass the Account within the Tobacco Tax Fund for allocation to eligible hospitals in (c) The department shall notify each hospital submitting the in the development of a regional or other local plan for equitably sharing two percent(2%)limit. accordance with the provisions of Section 1797.304.Such funds shall not information specified under subdivision(a)of Section 1797.302 in writing responsibility for providing emergency services to uninsured and love- d The State Department Health Services shall be reimbursed rom be used for administrative costs, and shall be supplemental to, and shall O P /• f through a communication delivered by no later than April 30 each year income underinsured patients arriving at the hospital via ambulance.Any Me Community Clinics Uninsured Sub-Account or the De artment'sactual not supplant, any other funds available to be allocated from such Sub- Y f p confirming the information it has from such hospital and of any apparent such plan may be developed under the auspices of a hospital association cost o administration. The total amount available or reimbursement o Account to eligible hospitals. ./� .f f discrepancies in the accuracy, completeness, or legibility of information or through other cooperative arrangements, and shall be submitted to the Department's administrative costs shall not exceed one percent(1%) submitted by such hospital pursuant to Section 1797.302. Unless such (i) In the event it is determined,upon a final adjudicatory decision that the county or other local emergency services authority for approval and of the monies credited to the Sub-Account during the fiscal year. written notice is timely delivered to an eligible hospital,the information it is no longer subject to appeal,that hospital has been incorrectly determined continuing oversight of implementation. SEC.8. NursingWorkforce Education Investment reports pursuant to Section 1797.302 shall be deemed to be complete and to not qualify as an eligible hospital,or was allocated an amount less than p p P (2) Each hospital receiving funds under this Chapter may work Section 128224.5 is added to the Health and SafetyCode,to read: accurate,but shall be subject to audit under subdivision the amount to which it is entitled under Section 1797.304, the department ] (�• cooperatively with one or more other hospitals to develop a plan for shall,from the next allocation offunds to hospitals under Section 1797.304, 128224.5. (a) The California Healthcare Workforce Policy (d) A hospital that receives notice from the department that the allocate to such hospital the additional amount to which it is entitled,and Providing maximum coverage ofspecialty medical services.Any such plan Commission shall oversee the plan for and distribution offunds in the information it reported was not accurate,complete, or legible shall have may include such items as coordinated coverage of particular medical I ***Text of Proposed Laws 1 155 1541 Text of Proposed Laws*** 1 TEXT OF PROPOSED LAWS * (PROPOSITION 86 CONTINUED) * *TEXT OF PROPOSED LAWS specialty services; alternate coverage of particular medical specialty (c) Prior to each allocation under subdivision(b),the actual costs of i governing board o the hospital and the medical sta Executive Committee : "Gross patient revenue"means the total charges at the hospital's g g .f P .ff () P g P services;and joint programs for the payment ofcoverage fees to physician the department(including any costs to the department resulting from the agree upon the retention b the hospital o one o the other independent g p y p f f p full established rates for the provision ofpatient care services and includes specialists for providing on-call coverage of emergency services. Any charges under Section 11527 of the Government Code)for administering financial analysts on the list of the three financial analysts provided to charges related to hospital-based physician professional services. such plan shall be submitted to and approved by the county or other local the provisions of this Chapter shall be reimbursed from the Hospital Sub- the hospital b the department. The selected inde endent nancial analyst emergency services authority or approval and continuing oversight o Account. The aggregate unds withdrawn or all administrative costs P Y P P fi Y (j) 'Eligible hospital" or "hospital" means a hospital licensed g y y f pp g g / f f o may charge the hospital a•reasonable fee to issue a written opinion to to a public or private entity or person under subdivision (a) of Section implementation. under this subdivision shall not exceed one half of one percent(0.5%)of the hospital governing board as to whether the proposed amount or rate 1250 of the Health and Safety Code, including without limitation, any (3) To the extent that any hospital or hospitals work cooperatively in the total amounts deposited in the Hospital Sub-Account (not including of payment is fair and reasonable under the circumstances.In the event hospital licensed to any county, city, hospital district, or the Regents of developing and implementing the plans for providing emergency services any fines collected under subdivision (h)of Section 1797.301)during the such independent financial analyst opines that the proposed amount or the University of California(but not including any hospital licensed to a described in this Section,the people intend that such hospital or hospitals prior quarter. rate of payment is not fair and reasonable,.upon request,the independent department of the State of California,or to the federal government)which shall incur no liability under,federal or state antitrust or other anti- (d) An eligible hospital shall use the funds received under this financial analyst may describe a range of payment amounts and rates that either operates an emergency department or is a children's hospital as competition laws prohibiting combinations in restraint of trade,including, Section only to further the provision of emergency services by such means are fair and reasonable, under the circumstances,for the hospital to pay defined in Section 10727 of the Welfare and Institutions Code. without limitation,the provisions of Chapter 2(commencing with Section as payment for the unreimbursed cost ofproviding emergency services and various types of physicians for on-call coverage. The hospital may not (k) "Emergency department encounter"or"emergency department 16700)of Part 2 of Division 7 of the Business and Professions Code. improving or expanding emergency services,facilities,or equipment.Such pay an amount or rate for on-call coverage of emergency services by a funds may not be used to a or more than the hospital's unreimbursed that is higher than an amount or rate determined to be air visit"means aface-to face contact between a patient and the provider r (c) Any funds received by an eligible hospital under this Article shall / Y pay f P physician g Y. f who has primary responsibility for assessing and treating the patient in not be used in the determination of uncompensated costs for the purpose of costs ofproviding emergency services,and no funds maybe used to pay the and reasonable by the opinion of such independent financial analyst,nor an emergency department and exercises independent judgment in the care the limitation on payment adjustments described in Section 1923(g)of the hospital for providing emergency services where it receives payment for shall the hospital pay less than its highest written offer to the physician or of the patient. An emergency department encounter or visit is counted Social Security Act and any provision of state law which incorporates such pfull. ngsuch services and has agreed to accept such payment as payment physicians that is fair and reasonable. for each patient of the emergency department, regardless of whether the limitation,to the extent consistent with federal law. in full.No funds may used for the compensation of hospital management (4) A hospital may compensate a physician for providing on-call patient is admitted as an inpatient or treated and released as an outpatient. executives,except for personnel who work full time in hospital emergency emergency services coverage only through a written agreement. An emergency department encounter or visit shall not be counted where 1797.304. (a) Funds deposited in the Emergency and Trauma departments.No funds may be used for equipment or capital improvements Hospital Services Sub-Account, together with all interest and investment not directly related to the improvement of hospital emergency department (5) The requirements of this subdivision relate only to the use of the patient received triage.services only. income earned thereon,'shall be continuously appropriated without funds eligible hospitals received under this Article,and do not apply to the 1 "Emergency services"or "hospital emergency services"means facilities or critical care units.An eligible hospital owned by a public entity O g Y P g Y regard to fiscal years to and administered by the state Department.of may use funds it receives under this Chapter to secure federal matching use of other funds by hospitals to pay for on-call coverage of emergency all services provided to patients in a'hospital emergency department and Health Services. The department shall allocate the funds solely to eligible services by physicians. all other patient services related to treatment o an emergent medical funds under the Medi-Calprogram, or any other federal or state health P f g hospitals as provided by this Article. program that includes coverage of emergency services and reduces the (n Nothing in this Chapter shall be construed to prevent hospital, condition in any department or unit of a hospital, including, without (b) Quarterly, commencing June 30 following the operative date burden of providing uncompensated emergency services by hospitals and in its sole discretion, from providing reasonable compensation to a limitation,anyprocedures necessary to avoid loss oflife,serious disability, of this Chapter, the department shall allocate to each eligible hospital physicians. physician for providing emergency physician staffing for the emergency or severe pain until the patient has been stabilized and transferred to a percentage of the balance of the Hospital Sub-Account equal to such department in a manner consistent with the Medical Practice Act, another health facility or discharged. (e)(1) A hospital may not utilize funds received under this Article to hospital's funding percentage,as determined by the department pursuant Chapter 5(commencing with Section 2000)of Division 2 of the Business m O ce" means the Office o Statewide Health Planning and to Section 1797.30/,except as follows: supplement payments physicians receive for services to patients enrolled ( ) �� .f.� ffi f g in the Medicare or Medi-Calprograms,but may use such funds to provide and Professions Code. Development. (1) The annual aggregate allocation to all hospitals that receive a to physicians or on-call coverage o emergency services to all (g) The hospital governing board,in consultation with the hospital's n "Department"means the state Department o Health Services. payments PY � f g f g Y () P P of Health of their revenue from the same associated comprehensive patients,including those enrolled in the Medicare or Medi-Cal rams,ro medical staff, shall ensure the appropriate coverage of medical services g g p programs, ()o "FundingPercenta e' means the sumof(1)an eligible hospital's group practice prepayment health care service plan shall not exceed as provided b subparagraph 2 below.Such payments to physicians or within its capabilities to meet the emergency services needs of its patients forty million dollars($40,000,000.00)during any calendar year,and the P Y () P ts P Y f as required b law. percentage y afa ital emergency care(as defined in subdivision(s)below) on-call coverage shall not be considered payments for services. q Y multiplied by a factor of.50, added to (2)such hospital's percentage of department shall reduce the quarterly allocation to each such hospital pro O p. y f 1797.305. The following definitions shall apply to terms utilized in effort( defined (p)-below) p y f f rota,if and to the extent necessary,to contain the aggregate allocation to 2 A hospital, in its sole discretion, may utilize funds it receives f g .� PPY e ort as de ned in subdivisionmultiplied b a actor o .50,the under this Chapter to provide compensation to a physician that is fair and this Chapter: sum to be expressed as a percentage. all such hospitals within any calendar year to a maximum offorty million dollars($40,000,000.00).The maximum annual aggregate allocation shall reasonable for providing on-call coverage of emergency services only if (a) "Bad-debt cost"means the aggregate amount of accounts and (p) "Hospital Sub-Account"or "Emergency and Trauma Hospital be applied ,0 the department in of no more than ten million the governing board of the hospital makes the following findings: notes receivable accounted for during a calendar year by an eligible Services Sub-Account" means the Emergency and Trauma Hospital dollars applied by the ($10,000 department t to each increments.the first three quarterly distributions (A) The amount or rate of payment is reasonable and necessary for hospital as credit losses, using any method generally.accepted for Services Sub-Account of the Tobacco Tax&nd established pursuant to the hospital to maintain coverage o medical services to care or patients estimating such amounts on the date this Act became effective, based on 7 o subdivision c o Section 30132.3 o the Revenue and of each calendar year, but no specific portion of the limit on maximum P g f f P paragraph O f O f f entering the hospital through the emergency department,or patients who patients' unwillingness to pay, and multiplied by the eligible hospital's Taxation Code. annual aggregate distributions provided by this subsection shall apply to g P g g Y P P ratio.es other quarterly distributions to such hospitals. have emergent conditions requiring the services of on-call physicians cost-to-charges (q) "Tobacco Tax Fund"means the Tobacco Tax of 2006 Trust Fund • while in the hospital;and (b) "County indigent program effort cost" means the amount of established pursuant to Section 30132 of the Revenue and Taxation Code. • • (2) The maximum aggregate annual allocation of forty million- care during a calendar year b an eligible hospital, expressed in dollars • dollars ($40,000,000.00) to all hospitals that receive a preponderance (B) The method and amount of compensation to any physician or g Y Y g P P (r) "Percentage of effort"means the sum of an eligible hospital's physicians is in compliance with applicable law. of their revenue from the same associated comprehensive group practice and based upon the hospital's full established rates,provided to indigent whether the hospital is a county total amount of charity care cost plus that hospital's total amount of bad- patients for whom a county is responsible', prepayment health care service plan set forth in paragraph(1)above shall (3) The governing board of a hospital, in its sole discretion,prior hospital or anon-county hospital providing services to indigent patients debt cost plus that hospital's county indigent program effort cost, as a be adjusted upward or downward annually, together with corresponding to entering into an agreement to compensate one or more physicians for percentage of the sum of the total amount of charity care cost plus the total under arrangements with a county, multiplied by the eligible hospital's changes in any quarterly limits, commencing on January 1, 2009, by the on-call coverage of emergency services may obtain the opinion of an cost-to-charges ratio. amount of bad-debt cost plus the total county indigent program effort cost same percentage increase or decrease in the aggregate amount deposited independent financial analyst with expertise in the hospital industry that reported in final form to the department by all eligible hospitals for the in the Hospital Sub-Accountfor the immediateprior calendaryear against -the proposed amount or rate ofpayment to compensate physicians under (c) "Charity care"means party p o e is notre provided by a hospital same calendar year. the aggregate amount deposited in the Hospital Sub-Account during the proposed agreement is air and reasonable under the circumstances. to i patient for which a third party payer is not responsible and the P p g p p g fair (s) "Percentage of hospital emergency care" means an eligible ' the 2007 calendar year.An adjustment that increases or decreases the 1 a hospital governing board elects to obtain such an opinion, it shall patient is unable to pay,and for which the hospital has no expectation of Y y � f p g g P � hospital's total emergency department encounters for the most recent maximum aggregate annual allocation to such hospitals shall be applied note the department in writing,and the department shall,within ten days Payment. p pp notify p g p Y calendar year for which such data has been reported to the department only to the then current calendar year. of receiving the hospital's written request,provide the hospital with the (d) "Charity-care cost"•means amounts actually written off, using in final form, as a percentage of all emergency department encounters (3) After making the adjustment to the maximum aggregate annual names of three independent financial analysts(which may be individuals any method generally accepted for determining such amounts on the date reported in final form by all eligible hospitals for the same calendar year. allocation to hospitals that receive a preponderance of their revenue from or firms)from•a list of such independent financial analysts qualified to this Act became effective,by an eligible hospital during a calendar yearfor In the case of a children's hospital that does not operate an emergency the same associated comprehensive group practice prepayment health issue such an opinion it establishes-and maintains. The hospital shall that portion of care provided to a patient for whom a third party payer is department and provides emergency treatment to a patient under twenty- care service plan provided by paragraph(2)above,the department shall provide the list of the independent,financial analysts it receives from not responsible and the patient is unable to pay,multiplied by the hospital's one years of age under arrangements with an emergency department further adjust such maximum aggregate annual allocation by increasing the department to the Executive Committee of the hospital's organized cost-to-charges ratio. of a hospital that is: (1) located within 1,000 yards of the children's decreasing it by a percentage factor equal to the percentage increase or medical staff, and the medical staff Executive Committee shall have (e) "Charity care policy"means a policy adopted by the hospital hospital;and(2)is either(A)under common ownership or control with decrease in the aggregate funding percentage by all hospitals receiving a fifteen (15) days to review the list and make a peremptory challenge of establishing eligibility criteria for charity care services provided by the the children's hospital,or(B)has contracted with the children's hospital t preponderance of their revenue from the same associated comprehensive one of the. independent financial analysts by notifying the hospital's hospital. to provide emergency services to its patients under twenty-one years of group practice prepayment health care service plan in the 2001 calendar governing board in writing. The hospital governing board may make a .(/) "Cost-to-charges ratio"means a ratio determined by dividing age, the children's hospital providing emergency services to such patient year against the aggregate funding percentage of all hospitals associated peremptory challenge to one of the independent financial analysts.If two an eligible hospital's operating expenses less other operating revenue by shall receive,credit for'the emergency department encounter,and not the with the same health care service plan for the most recent calendar year. of the three independent financial analysts are subject to a peremptory gross patient revenue for its most recent reporting period. hospital operating the emergency department. the hospital e challeng , pital governing board may retain only the remaining , Unreimbursed cost o rovidin emergency service"means the (4) After making the adjustments to the allocation of funds as (g) "Operating expenses" means the total expenses incurred for (t " ) fP g emer g Y independent financial analyst. If more than one independent financial providing patient care by the hospital.Operating expenses include(without difference between the hospital's cost of providing emergency services, provided by paragraphs (1) through (it above, the department shall analyst is not subject to a peremptory challenge, the hospital shall so allocate any funds remaining in the Hospital Sub-Account to hospitals that Y > P P Y g P limitation)salaries and wages,employee benefits,professionalfees,supplies, determined by multiplying its gross patient charges for providing such notify the department,and the department shall select one of the remaining purchased services,depreciation,leases,interest and other expenses. services by its cost-to-charges ratio, and the amount it actually receives do not receive a preponderance of their revenue from the same associated independent financial analysts by lottery.In such event, the hospital may comprehensive group practice prepayment health care service plan pro h "Other operating revenue"means revenue generated 6 h .for providing such services, where the hospital has not agreed to accept , rata based upon their respective funding percentages. retain only the independentfinancial analyst selected by lottery,unless the O P g g y health care operations from non patient care services to patients and others. the payment it receives as payment in full. 1561 Text of Proposed Laws*** ** Text of Proposed Laws 1 157 TEXT OF PROPOSED LAWS * * * (PROPOSITION 86 CONTINUED) * * *TEXT OF PROPOSED LAWS (u) "Physician" means a physician and surgeon licensed under also state the process used by the hospital to determine whether a patient (c) At time of billing,each hospital shall provide to all low-income Section 30122 of the Revenue and Taxation Code)as follows: the Medical Practice Act, Chapter 5(commencing with Section 2000)of is eligible for charity care or discounted payment. and uninsured patients,as the same are defined in policies adopted by the (1) Twenty million two hundred twenty-seven thousand dollars 2 o the Business and Professions Code. c Patients who are at or below three hundred fifty percent(350%) hospital,regarding eligibility for charity care and discounted payment,the ($20,227,000)from the Hospital Services Account. Divisionf f () same information concerning services and charges provided to all other 1797.306. A hospital receiving funds under this Chapter shall of thefederal poverty level shall be eligible to applyfor participation under patients who receive care at the hospital. (6, Four million five hundred seventy-six thousand dollars maintain a written recordofits use ofallsuchfunds,which shall be available each hospital's charity care policy or discount payment policy.However, ($4,3(h) The from the Physician Services Account. to the department upon request,and available for inspection upon written rural hospitals, as defined by Section 124840, may establish eligibility (ta When sending a bill a a patient, each hospital shall include: (b) The funds specified in subdivision (a) shall be allocated request by thepublic.A hospital shall return to the department any funds it levels for financial assistance and charity care at less than three hundred re a statement that indicates that if the patient meets ernmcertain.-spo sored requirements the patient may be el eble or a government-sponsored come Proportionately asfollows: receives under this Chapter that it does not'use for the purposes specified fifty percent(350%)of the federal poverty level as appropriate to maintain q P y g f g P (1) Twenty-two million three hundred twenty-four thousand dollars within one year of receipt or, in the case of a capital project, are not their financial and operational integrity. program or for financial assistance from the hospital;and number a statement committed within two ears o recei t b the governing board or a specific that provides the patient with the name and telephone number of a hospital ($22,324,000)shall be administered and allocated for distribution through co y f p y g g f (d) Absent any regulatory prohibition, each hospital shall limit employee or officefrom whom or which the patient may obtain information the California Healthcare for Indigents Program (CHIP), Chapter 5 use.Any unused funds returned to the department shall be deposited in the expected payment for services it provides to any patient at or below three about the hospital's financial assistance policies for patients and how to (commencing with Section 16940)of Part 4.7 of Division 9 of the Welfare Emergency and Trauma Hospital Services Sub-Account within the Tobacco hundred fifty percent(350%) of the federal poverty level eligible under apply for such assistance. and'Institutions Code. Tax of 2006 Trust Fund for allocation to eligible hospitals in accordance its discount payment policy to the greater of the amount of payment the (e) For patients who have a completed application pendingfor either (2) Two million four hundred seventy-nine thousand dollars with the provisions of Section 1797.304. hospital would receive for providing such services from Medicare or any payment policies, care or discount py ($2,479,000)shall be administered and allocated through the Rural Health 1797.307. The department may promulgate and adopt regulations other government-sponsored health program of health benefits in which charity government-sponsored coverage for eligibility under the hospital's own olicies,a hospital shall not knowingly Services Program,Chapter 4(commencing with Section 16930)of Part 4.7 to implement, interpret and make specific the provisions of this Article the hospital participates.If the hospital provides a service for which there of Division 9 of the Welfare and Institutions Code. pursuant to the provisions of the Administrative Procedures Act as set forth is no establishedpayment by Medicare or any other government-sponsored send that patient's bill a collection agency prior to days from time ' in Chapter 3.5(commencing with Section 11340)of Part I of Division 3 of program of health benefits in which the hospital participates,the hospital of initial billing,and without first having made more than one attempt to (c) This transfer shall be made on June'30 of the first fiscal year collect the bill,or while the completed application is being processed by a following adoption of this Act,and on June 30 of each fiscal year thereafter. Title 2 of the Government Code. The department shall have no authority shall establish an appropriate discounted payment. governmental agency or the hospital. / Y appropriated g fi to promulgate quasi-legislative rules, or to adopt an rule, guideline, Funds transferred are continuous) a ro rioted without regard to scat p g q g p y g (e) A hospital shall use its best efforts to ensure all financial (� If a patient qualifies for eligibility under the hospital's charity Years for the purposes so stated for each such account. criterion, manual, order, standard, policy, procedure or interpretation assistance policies are applied consistently. care or discount payment policy and is attempting in good faith to settle (d)(1) Funds allocated pursuant to this Section from the Physician that is inconsistent with the provisions of this Chapter. This Section shall 09 Any patient, or the patient's legal representative,seeking either an outstanding bill with the hospital by negotiating a reasonable payment Services Account and the Hospital Services Account in the Cigarette and not be interpreted to allow the department to adopt regulations(as defined charity care or discounted payment shall provide the hospital with plan or b making regular partial payments o a reasonable amount, Y f f P y g g P p y f Tobacco Products Surtax Fund shall be used only or reimbursement o by Section 11342.600 of the Government Code)in contravention of Section information concerning health benefits coverage,financial status and the hospital shall not send the unpaid bill to any collection agency if the physicians for losses incurred in providing uncompensated emergency 11340.5 of the Government Code. other information that is reasonable and necessar or the hos ital to make Yf P hospital knows that doing so may negatively impact a patient's credit. services in general acute-care hospitals providing basic,comprehensive, 1797.308. No hospital may receive funds under this Chapter unless a determination regarding the patient's status relative to the hospital's or standby emergency services,as defined in Section 16953 of the Welfare it complies with the,provisions o Article 2 (commencing with Section hospital The hospital ea collection agency operating under behalf of the p p f ( g charity care policy,discount payment policy,or eligibility for hospital shall not, in dealing with patients eligible under the hospital's and Institutions Code.Funds shall be transferred to the Physician Services 1797.309),relating to financial assistance to certain low-income patients. sponsored programs. For purposes of proving income, a patient or the Account in the county Emergency Medical Services Fund established patient's legal representative,must provide verification o the atient's or charity care es discount payment policies,use wage garnishments or liens ' P g P Pf P on primary residences as a means of collecting unpaid hospital bills.This Pursuant to Sections 16951 and 16952 of the Welfare and Institutions Article 2. Hospital Charity Care and Financial Assistance Policies the patient's family s income. Reasonable and necessary information on requirement does not preclude hospitals from pursuing reimbursement Code,and shall be paid only to physicians who directly provide emergency 'monetary assets may include account numbers for all monetary assets,but from third-party liability settlements or tortfeasors or other legally plans P medical services to patients, based on claims submitted or a.subsequent 1797.309. For purposes of this Article the following definitions shall not include statements on retirement or deferred P erred compensation l responsible parties. reconciliation of claims.Payments shall be made as provided in Sections shall apply: qualified under the Internal Revenue Code, or non-qualified deferred 16951 to 16959, inclusive, of the Welfare and Institutions Code, and compensation plans.Hospitals may require waivers or releases from the (ts Any extended payment plans offered re a hospital p assist (a) 'Allocation"means an allocation of funds received by a hospital P P P Y q f payments shall be made on an equitable basis,without preference to any patient,or the patient's family,authorizing the hospital to obtain account patients eligible under the hospital's charity care or discount payment under Article I(commencing with Section 1797.300)of this Chapter. P P f Y g P particular physician or group of physicians. information from the financial or commercial institutions,or other entities policy,or any otherpolicy adopted by the hospital for assisting low-income (b) "Discounted payment" means the payment amount after patients with no or inadequate insurance in settling past due outstanding e If e county has an EMS Fund Advisory Committee that includes that hold or maintain the monetary assets to verify their value. P q gP g both emergency physicians and emergency department on-call back- application of a discount from its full charges for services offered by a hospital bills,shall be interest free. g y P y g y P (g) Eligibility for charity care and discounted payments may be u panel physicians, and i the committee,,unanimous) approves, the hospital to patients who have no or inadequate insurance and qualify P P P Y f Y PP determined at an time the hospital is in receipt o all the information 1797.313. (a) Notwithstanding any other provision of law, the e . under the hospital's discount payment policy. Y P P f f - administratoroftheEMSFundmaycreateaspecealfeescheduleandc[aims needed to determine the atierit's eligibility under its applicable policies. amounts paid by parties for services resulting from reduced or waived (c) `Discount payment policy" means a policy adopted by the P g y PP P submission criteria for reimbursement for services rendered(1 uninsured h In determining a patient's eligibility for financial assistance, a charges under a hospital's discount payment or charity care policy shall hospital establishing eligibility criteria for receiving services for a O g P g Yf fi not constitute the hospital's uniform,published,prevailing, or customary trauma patients,provided that no more than fifteen percent(IS%)of the hospital shall assist the patient in determining if he or she is eligible for tobacco tax revenues allocated to the county's EMS Fund is distributed • discounted payment. charges, its usual fees to the general public, or its charges to non-Medi- • • • • (d) "Federalpoverty level"means the most recentpoverty guidelines government-sponsored programs. Cal purchasers under comparable circumstances, and shall not be used through this special fee schedule, that all physicians who render trauma 1797.311. a Each hospital shall post notices regarding the to calculate a hospital's median non-Medicare or Medi-Cal charges,for services are entitled to submit claims for reimbursement under this special periodically adopted by the federal Department of Health and Human () P P g g , Services for determining financial eligibility for participation in various availability of its discount payment policy and charity care policy. These fee schedule,and that no physician's claim may is reimbursed . greater purposes of any payment limit under the federal Medicare program, the than fifty percent(50%)of losses under this special fee schedule. programs based upon family size as applicable to California. notices shall be posted in visible locations throughout the hospital, Medi-Cal program or any other federal or state financed health care (e) "Hospital" means an "eligible hospital," as defined by including, but not limited to, patient admissions and registration, the program. SEC.11. Amendment (j) f billing office,the emergency department and other outpatient settings. b Nothing in this Article shall be construed to prohibit a hospital (a) Except as hereafter provided, this Act may,only be amended subdivision o Section 1797305. e O g P P 1797309.5. Each hospital shall comply with the provisions of this (b) Every posted notice regarding financial assistance policies shall from uniformly imposing charges from its established charge schedule by the electors pursuant to Article II, Section 10(c) of the California contain brief instructions on how to apply for charity care or a discounted or published rates, nor shall this Article preclude the reco nition o a Constitution. Article throughout each calendar year in which it receives an allocation. Each notice shall include a contact telephone'number that a P P g f b Notwithstanding subdivision a The requirements of this Article are applicable only to hospitals receiving payment.. P hospital's established charge schedule or published rates for purposes of ( ) g ( ), the Legislature may amend an allocation, and shall not be construed to limit the ability of the Patient or family member can call to obtain more information. applying any payment limit, interim payment amount, or other payment Sections 8 and 9 of this Act to further its purposes by a statute passed Legislature to enact charity care or discount payment policies applicable (c) A hospital shall train appropriate staff members about the calculation based upon a hospital's rates or charges under the Medi-Cal, in each house by roll-call vote entered in the journal, four-fifths of the to all acute hospitals as a condition of licensure or participation in any hospital's discount payment policy. Training shall be provided to all staff Medicare, worker's compensation, or other federal,state or local public membership concurring. other state program. members who directly interact with patients regarding their hospital bills. program of health benefits.' - (c) Notwithstanding subdivisions (a) and(b),the Legislature may 1797.310. (a) Each hospital shall maintain an understandable, (d) Each hospital shall make its charity care and discount payment (c) To the extent that any requirement of this Article results in a amend Article 2(commencing with Section 1797.309)of'Chapter 4.5 of written charity care policy and discount payment policy for low-income policies available to appropriate community health and human services federal determination that a hospital's established charge schedule or Division 2.5 of the Health and Safety Code to further its purposes by a patients with no or inadequate insurance. agencies and other organizations that assist low-income patients. published rates are not the hospital's customary or prevailing charges for statute passed in each house by roll-call vote entered in the journal,two- patients Each hospital's charity care policy and discount payment 1797.312. (a) Each hospital shall have a written policy about when services,the requirement in question shall be inoperative.The department thirds of the membership concurring. ' policy shall clearly state eligibility criteria based upon the income and and under whose authority patient debt is advanced for collection, and shall seek federal guidance regarding modification to the requirement in " (d) Notwithstanding subdivisions (a), (b), and(c), the Legislature monetary assets of the patient, or consistent with the application e the shall use its best efforts to ensure that patient accounts are processed question.All other requirements in this Article shall remain operative. may amend Sections 6 and 7 of this Act to further its purposes by a statute federal poverty level, the patient's family.en determining such eligibility, fairly and consistently. SEC. 10. Preservation of Existing Funding passed in each house by roll-call vote entered in the journal,a majority of a hospital may consider income and monetary assets of the patient,or the (b) Each hospital shall establish a written policy defining standards Section i6950.2 is added to Article 3 of Chapter 5 of Part 4.7 of the membership concurring,except that the Legislature may not amend ' family of the patient.For purposes ofsuch determination,monetary assets and practices for the collection of debt, and shall obtain a written Division 9 of the Welfare and Institutions Code,to read: subdivision (b) of Section 12693.992 of the Insurance Code added by shall not include retirement or deferred-compensation plans qualified agreement from any agency that collects hospital receivables that it will 16950.2. (a) An amount, equal to the amount appropriated and Section 6 of this Act or subdivision(a)or paragraph(1)of subdivision(c) under the Internal Revenue Code,or non-qualified deferred compensation adhere to the hospital's standards and scope of practices.In determining allocated pursuant to Section 39.1 of Chapter 80 of the Statutes of 2005, of Section 1246 of the Health and Safety Code added by Section 7 of this plans.Furthermore,the first ten thousand dollars($10,000)of a patient's the amount of a debt a hospital may seek to recover from patients eligible twenty-four million eight hundred three thousand dollars($24,803,000), Act. or a patient's family's monetary assets shall not be counted in determining under its charity care policy or discount payment policy,the hospital may shall be transferred andallocatedpursuant tosubdivision(b)from accounts SEC.12. Statutory References eligibility; nor shall fifty percent(50%)of such assets over the first ten consider only income and monetary assets as limited by subdivision(b)of within the Cigarette and Tobacco Products Surtax Fund(commeencing with Unless otherwise stated,all references in this act to existing statutes thousand dollars be counted in determining eligibility. The policy shall Section 1797.310. ***Text of Proposed Laws 1 159 1581 Text of Proposed Laws* TEXT OF PROPOSED LAWS (PROPOSITION 87 CONTINUED) * * TEXT OF PROPOSED LAWS are to statutes as they existed on December 31, 2005. oil producers are enjoying windfall profits at the expense of California sources of energy and clean alternative fuels,increasing their usage here obligations and indebtedness of the authority issued pursuant to Division SEC. 13. Severability consumers and taxpayers. in California,and improving our energy efficiency; 16(commencing with Section 26000)of the Public Resources Code, the If any provision of this act,or part thereof,is for any reason held to be E. An assessment paid by California's big oil companies on their E. Improve our environment, public health, and quality of life by revenues produced by any grants or loans made pursuant to the Clean invalid or unconstitutional,the remaining provisions shall not be affected, excess profits is a proven way to reclaim some of those revenues without reducing emissions of carbon dioxide and other global warming gases; Alternative Energy Act, and any royalties or license fees generated but shall remain in full force and effect,and to this end the provisions of raising prices for consumers. California is the only one of the nation's top F. Reduce by 25% our use of petroleum transportation,fuels in Pursuant to the Clean Alternative Energy Act shall be deposited in the this Act are severable. five oil-producing states without a comparable assessment on oil producers. California from the 2005 level of 16 billion gallons annually to begin California Energy Independence Fund and are hereby continuously SEC. 14. Conflicting Measures These assessments have proven to be impossible for the big oil companies conserving four billion gallons annually by 2017,and conserve a total of appropriated, without regard to fiscal year,for the purposes of the Clean to"pass along"to consumers in the form of higher gas prices at the pump 10 billion gallons over ten years between 2007 and 2017; Alternative Energy Act alone. (a) This measure is intended to be comprehensive..It is the intent because oil prices are set on the global market without regard to regional (d) The moneys in the California Ehergy Independence Fund may not People another or local costs or'assessments. of the Peo that in the event that this measure and anoth initiative G. Invest in energy education in California at that California P be used for any purpose or program other than the purposes or programs measure or measures relating to the same subject shall appear on the same workers can take advantage of the job opportunities that will open up for F. Consumers should be protected from any attempt at price gouging those trained in emerging energy systems,technologies,and management authorized by the Clean Alternative Energy Act,and may not be loaned to statewide election ballot,the provisions of the other measure or measures g g gY y g g shall be deemed to be in conflict with this measure.In the event'that this by big oil companies if they try to pass along their assessment costs by methods; the state General Fund,or to any other fund of the state,or to any fund of increasing gas prices at the pump. a county,or any other entity,or,borrowed by the Legislature,or any other measure shall receive a greater number of affirmative votes,the provisions G. The roceeds from the assessment on California oil companies' H. Make full use of California's internal resources and its capability state or local agency,for any purpose other than the purposes authorized of this measure shall prevail in their entirety,and all provisions of the other proceeds P for innovation to develop new ways to meet four of the state's important P measure or measures shall be null and void. excess tofits should be used to reduce the consumption of petroleum, long-term goals:the Renewable Portfolio Standard,Control of Greenhouse by the Clean Alternative Energy Act. (b) If this measure is approved by voters but superseded by law by foster the development and use of clean alternative fuels,clean alternative Gas Emissions from Motor Vehicles, the Governor's Greenhouse Gas (e) Notwithstanding any other provision of this Constitution, fuel vehicles, and renewable energy technologies, arid improve energy targets,and the petroleum reduction goals set forth in this Act; revenues generated by the California Energy Independence Fund any other conflicting ballot measure approved by the voters at the same g P g election, and the conflicting ballot measure is later held invalid, this efficiency in California. I. Impose an assessment on oil extracted from California's oil wells Assessment shall not be deemed to be "revenues"io "unit hat is H. A clean,'environmental) -sound energy economy with greatly of computing any state expenditure or appropriation limit that is enacted measure shall be self-executingand given full force of law. Y us y g Y to ensure that California consumers'future ener needs are met without g improved ener efficiency is a vital, pro-business goal. Given that gY on or after June 6,2006,nor shall their expenditure or appropriation be P gY Y P g raising gasoline prices for consumers today.By ensuring that oil producers SEC. 15. Conformity with State Constitution fossil fuel reserves are finite, and that the global appetite for energy is subject to any reduction or limitation imposed pursuant to any provision Section 14 is added to Article XIII B of the California Constitution, g PIS gY in California finally pay their fair share,se will create a dedicated funding enacted after that date. growing,the only question is when—not if—we will make our economy stream of approximately $4 billion to secure California's future energy f , to read: significantly more energy efficient and switch to renewable energies and independence; SEC. 5. Section 14 is added to Article XIII B of the California SEC. 14. (a) 'Appropriations subject to limitation"of each entity of get more work out of less energy.But politicians in Washington have failed Constitution,to read: government shall not include appropriations of revenue from'the Tobacco to offer visionar 'leadershi for energy independence or to capture the J' Ensure that California oil companies fully comply with the excess visionary'leadership gY P P SEC. 14. (a) `Appropriations subject to limitation"of each entity Tax Act of 2006.No adjustment in the appropriations limit of any entity of economic rewards of early action in this critical technology sector. profits assessment and protect consumers by prohibiting the oil companies, consistent with U.S.Supreme Court precedent,from attempting to gouge of government shall not include appropriations of revenue from the government shall be.required pursuant to Section 3 as a result bf revenue I. The United States'dependence on foreign oil is a serious danger consumers by using the assessment as a pretext to raise prices on oil, California Energy Independence Fund,which is established in subdivision being deposited in or appropriated from the Tobacco Tax of2006 Trust Fund. to U.S.national security,hampers U.S.foreign policy,and is a persistent gasoline,and diesel fuels in California;and (a) of Section 4 of Article XXXVI. No adjustment in the appropriations (b) The tax created by the Tobacco Tax Act of 2006 and the revenue threat to the U.S. economy. Because 60% of the petroleum the U.S. limit ofany entity ofgovernment shall be required pursuant to Section 3 as derived therefrom shall not be considered General Fund revenues or the y g P K. Ensure that the revenues from the new assessment on California f r current) uses comes from foreign imports,and because California is the oil producers are invested wisely in the most promising research and a result of revenue being deposited in or appropriated from the California purposes of Section 8 of Article XVI. largest consumer of petroleum_products,we must do our part to address . Energy Independence Fund. (c) Distribution of moneys in the Tobacco Tax of 2006 Trust Fund these national problems. technologies, and require mandatory independent audits and annual (b) Revenues generated by the California Energy Independence progress reports so that the leaders of this project are accountable to the or any of the Accounts or Sub-Accounts created therein, shall be made J. Further delay in beginning the transition to clean,efficient, and people California. Fund Assessment shall not be considered General Fund revenues for the pursuant to the Tobacco Tax Act of 2006 notwithstanding any other renewable energy puts California and the U.S.at risk for economic upheaval, purposes of Section 8 and Section 8.5ofArticleXVI.. rovision o this Constitution. and cedes the o ortunit for new ener technolo ical and industrial SEC.4. Article XXXVI is added to the California Constitution,to p .f PP Y energy g read: SEC. 6. Section 26004 of the Public Resources Code is amended leadership to other more pro-active countries, thereby perpetuating our to read: dependence on foreign energy sources. SECTION I. There is hereby established in state government the PROPOSITION 87 P g gY Clean Alternative Energy Program. 26004. (a) There is in the state government the Califbrni K. The transition to a renewable energy economy creates California This initiative measure is submitted to the people of California in an opportunity for California to profit economically, socially, and SEC. 2. The Clean Alternative Energy Program shall be accordance with the provisions of Section 8 of Article II of the California PP y P y y Energy Alternatives Program Authority.The authority constitutes a public P environmentally. Clean alternative energy technologies like solar,wind, . administered by the California Energy Alternatives Program Authority, instrumentality and the exercise by the authority of powers conferred Constitution. and hydrogen, and clean alternative fuel vehicles like hybrids and bio- which is established in Division 16 (commencing with Section 260009 y by this division and Article XXXVI of the California Constitution is the This initiative measure adds provisions to the California Constitution, fueled cars and trucks are available today and can help reduce our of the Public Resources Code, and shall be funded by the California p y P performance of an essential public function. • Energy Independence Fund Assessment, which is established in Part • • amends,repeals,and adds sections to the Public Resources Code,and adds dependence on oil and gasoline. (b) The authority shall consist of five nine members,as follows: sections to the Revenue and Taxation Code;therefore,existing provisions L. California's history of technological innovation and 21 (commencing.with Section 42000) of Division 2 of the Revenue and proposed to be deleted are printed in strikeettt type and new provisions entrepreneurship, p promoting energy y Taxation Code. (1) The Secretary for Environmental Protection The vacc4oi of p p,international leadership in romotin ener efficiency, Finanee. proposed to be added are printed in italic type to indicate that they are new. abundance of world-leading academic institutions, national leadership SEC. 3. In addition to the powers set forth in Division 16 a PROPOSED LAW in environmental stewardship, and position as one of the United States' (commencing with Section 26000) of the Public Resources Code, the hComCharson f the State Energy Resources Conservation - largest energy consumers uniquely qualifies us to lead the way into the California Energy Alternatives Program Authority shall have the power, and Development notwithstanding Article XVI, any other article of this Constitution, or (3) The President of the „_L,:_ Utilities em ___ . The renewable energy era. any other provision of law, to use revenues produced by the California Treasurer. THE CLEAN ALTERNATIVE ENERGY ACT SEC.3. PURPOSE AND INTENT. EnergyIndependence Fund Assessment to provide incentives including, he ' It is the intent of the people of California in enacting this measure to: p p g� (4) The Controller A Californian who has expertise in economics, P P g but not limited to,grants, loans, loan guarantees, buydowns,and credits energy markets, and energy efficiency technologies, appointed by the SECTION 1. TITLE. A. Invest approximately$4 billion in projects and programs designed to universities, community colleges, research institutions, individuals, Governor. to enhance California's energy independence and to reduce our use of companies, associations,partnerships, and corporations pursuant to the This measure shall be known as the"Clean Alternative Energy Act." (5) The Treasuret,who shall seive as the ehairperson ofthe authority,. petroleum, including funding for: research, facility, and training grants Clean Alternative Energy Act or to secure the repayment of any bonds, A Californian who has expertise,and who has demonstrated leadership,in SEC.2. FINDINGS AND DECLARATIONS. - to California's universities; vocational training grants to community bond anticipation notes, and other obligations and indebtedness of the public health,appointed by the Governor. The people of California find and declare the following: colleges;and buydowns,loans,loan guarantees,and credits to accelerate authority issued pursuant to Division 16(commencing with Section 26000) 6 A Californian who has expertise in Hance, start-ups, and the development and deployment of renewable energy technologies,energy of the Public Resources Code, and any other costs associated with such () p finance, p A. Californians are facing a severe energy crisis.In 2005,the price efficiency technologies,clean alternative fuels,and clean alternative fuel bonds,that are used to fund such incentives. venture capital,preferably with experience in enterprises comparable in of oil nearly doubled and the cost of a gallon of gas soared to over$3 in vehicles; SEC. 4. (a) Revenues produced by the California Energy scale and purpose to those that would be eligible for funding pursuant to the Clean Alternative Energy Act,appointed by the Controller some areas,causing ordinary consumers extreme financial distress while B. Provide incentives to ordinary Californians to make clean Independence Fund Assessmentshall be deposited in the California Energy the big oil companies reported record profits. (7) A renewable energy or energy efficiency expert from a California alternative fuel vehicles and clean alternative fuels as affordable and easy Independence Fund,which is hereby created as a special fund in the State B. Our demand for energy is rising rapidly while our energy supply to obtain as gasoline and diesel fuels and vehicles.Incentive programs like Treasury, to be held in trust for the purposes of the Clean Alternative university that awards doctoral degrees in the sciences who is either a shrinks,and,we continue to grow more dependent on foreign oil. this have already succeeded in breaking other countries'oil dependence, Energy Act.Moneys held in the California Energy Independence Fund are member of the National Academy of Sciences or the National Academy of C. Our excessive dependence on fossil fuels is imposing economic, and they can easily work in California today; hereby continuously appropriated,without regard to fiscal year,for those Engineering, or a Nobel Prize laureate, appointed by the Speaker of the environmental,and social costs.High-polluting vehicles like diesel buses C. Create new industries, technologies, and jobs focused on purposes alone. Assembly. and trucks create significant air pollution that is threatening the health of renewable energy, (8) The dean or a tenured faculty member of a major, nationally energy efficiency, clean alternative fuels, and clean (b) The California Energy Alternatives Program Authority shall our families and children with lung diseases and asthma. They can and alternative fuel vehicles, expand our state's wealth,and ensure that any be authorized to expend four billion dollars ($4,000,000,000)from the recognized California business school that awards post-graduate degrees 1 should be replaced by clean alternative fuel vehicles. +' loan proceeds,royalties,or license fees the state receives as a result of the California Energy Independence Fund for the purposes of the Clean who has significant experience in as many as possible of new technology D. California is the only major oil-producing state in the country that funding are reinvested in this program; Alternative Energy Act,as provided in subdivision(d)of Section 26045 of ventures, entrepreneurship, consumer marketing, consumer adoption of does not impose a comparable fee on oil produced at its wells.California's D. Reduce our dependence on foreign oil by developing renewable the Public Resources Code. new trends,and enterprises comparable in scale and purpose to those that (c) The proceeds of any bonds, bond anticipation notes, and other would be eligible for funding pursuant to the Clean Alternative Energy Act,appointed by the Senate Committee on Rules. 1601 Text of Proposed Laws*** ***Text of Proposed Laws 1 161 i I TEXT OF PROPOSED LAWS �k (PROPOSITION 87 CONTINUED) * TEXT OF PROPOSED LAWS (9) A Californian who has expertise, and who has demonstrated to Section 26045;to develop and recommend procedures and standards from the date of issue of the original note. rights and remedies of the holders in the event of a default. leadership,in consumer advocacy,preferably with substantial experience to monitor recipients of incentives including, but not limited to, grants, (b) Except as may otherwise be expressly provided by the authority (10) The mortgaging of any project and the site of the project for the in consumer marketing and business,appointed by the Attorney General. loans, loan guarantees, credits, and buydowns awarded by the authority and except as more particularly provided in subdivision (e),every issue purpose of securing the bondholders. (e) The members listed in paragraphs (1) to (5)(3), inclusive, of pursuant to Section 26045;and to execute and manage contracts on behalf of its bonds,notes,or other obligations shall be general obligations of the (11) The mortgaging of land,improvements,or other assets owned subdivision(b)may each designatey of the authority. authority payable from any revenues or moneys of the authority available for by a participating party for the purpose of securing the bondholders. a deputy p who (b) From time to time,the authority shall determine the total number these purposes and not otherwise pledged,subject only to any agreements (12) Procedures for the selection of projects to be financed with the is employed under the member's authority, and, notwithstanding Section of authorized employees for the authority. with the holders of particular bonds,notes,or othet obligations pledging proceeds of the bonds'authorized by the resolution,if the bonds are to be 7.5 o the Government Code, each such designee may act in his or her any'particular revenues or moneys and subject to any agreements with f g y (1) Notwithstanding Sections 19816, 19825, 19826, 19829, and sold in advance of the designation of the projects and participating parties lace and stead on the board. While serving on the board,the deputy may any participating party. Notwithstanding that the bonds, notes, or other p S p Y Y 19832 of the Government Code, the authority shall fix and approve to receive the financing. obligations may be payable from a special fund,they are for all purposes exercise the same powers that the member could exercise if he or she were the compensation of the chief executive officer and other staff of the (e) Notwithstanding any otherprovision ofthis division,the authority negotiable instruments,subject only to the provisions of the bonds,notes, personally present. authority. or other obligations for registration. may pledge all moneys which are deposited in the Debt Service Account of (d) The first meeting of the authority after the voters'enactment of (2) When fixing and approving the compensation of the chief (c) the bonds the California Energy Independence Fund,which is established by Article the Clean Alternative EnergyAct shall be convened by the Treasurer within executive officer and other staff of the authority pursuant to paragraphbjeet to the tions 2�020 and XXXVI of the California Constitution, to the payment of the principal 60 days of the effective date of the Act.At the first meeting,the members of (1), the authority shall be guided by the principles contained in Sections Bonds may be issued as serial bonds or as term bonds,or the authority, of premium, if any, or interest on any bonds, bond anticipation notes or the authorityshall elect a chairperson,who shall serve a two-year term. in its discretion, may issue bonds of both types. The bonds shall be p Y 19826 and 19829 of the Government Code,consistent with the authority's other obligations of the authority used to finance the Clean Alternative ,f No chairperson shall serve more than two consecutive two-year terms. authorized by resolution of the authority and shall bear the date or dates, p Y responsibility to recruit and retain highly qualified and effective Energy Act, together with payment of all ancillary obligations, as that mature at the time or times,not exceeding 50 years from their respective ; (e) Members of the authority and any entity controlled by a member employees. term is defined in Section deter or other costs to timeissuing or carrying such 'shall not be eligible to a 1 or an incentive including, not limited dates,bear interest at the rate or rates,be payable at the time or times, bonds.The authority shall determine from time to time and notify the State g pp y f y g SEC. 10. Section 26010 of the Public Resources Code is amended be in the denominations, be in the form, either coupon or registered, f fY to, any grant, loan, loan guarantee, credit, or buydown awarded by the to read: Board of Equalization h writing the amounts which must be deposited carry the registration privileges,be executed in a manner,be payable in each month, or during the course of each fiscal year, in the Debt Service authority or any contract made by the authority. 26010. a The Attorney General shall be the legal counsel for the ( ) y g lawful money of the United States of America at a place or places, and (f) Members of the authority appointed pursuant to paragraphs(4) authority,but with the approval of the Attorney General,the authority may be subject to terms of redemption, as the resolution or resolutions may Account f provide for all the aforementioned payments and costs,and any to(9),inclusive,of subdivision(b)shall serve four year terms and shall be employ such legal counsel as in its judgment is necessary or advisable provide,provided, however, that bonds issued for purposes of the Clean coverage factors which are required v the bond documents.The lien of the eligible to serve a maximum of two terms. to enable it to carry out the duties and functions imposed upon it by this Alternative Energy Act shall have a maturity of not more than 25 years. pledge e the execution amounts in the Debt Service Account shall vest automatically (g) Service as a member of the authority by a member of the faculty division,including the employment of such bond counsel as may be deemed The bonds or notes shall be sold by the Treasurer within 60 days of receipt upon the execution and delivery of the resolution, trust agreement, er or administration of the University of California shall not, by itself, be advisable in connection with the issuance and sale of bonds. of a certified copy of the authority's resolution authorizing the sale of the other agreement relating to the bonds, bond anticipation notes, other deemed to be inconsistent, incompatible, in conflict with, or inimical ee or-f*roan e obligations,or ancillary agreements,without requirement of any filing or p fi• (b) The Treasurer shall be the treasurer of the bonds. However, the authority, at its discretion, may adopt a resolution notice.If moneys are deposited in the Debt Service Account which exceed to the duties of a member of the authority as a member of the faculty authority. extending the 60-day period. The sales may be a public or private sale, the amounts necessary to pay current obligations for repayment of bonds, or administration of the University of California and shall not result in SEC. 11. Section 26020 of the Public Resources Code is amended and for the price or prices and on the terms and conditions,as the authority other obligations and ancillary obligations,the authority shall apply such automatic vacation of either office. Service as a member of the authority to read: shall determine excess funds to the early retirement of such bonds to the maximum extent by an employee of an entity that is eligible for funding from the authority 26020. (a) The authority may incur indebtedness and issue and be ssisted from the roeeeds of fiscally prudent. shall not be deemed to be inconsistent, incompatible, in conflict with, or or notes.Pending preparation of the definitive bonds,the Treasurer may renew negotiable bonds,notes,debentures,or other securities of any kind (e)(f) Neither the members of the authority nor any person executing inimical to the duties of a member of the authority as an employee of an issue interim receipts, certificates, or temporary bonds which shall be or class to carry out its corporate purposes. All indebtedness,however the bonds or notes shall be liable personally on the bonds or notes or be entity that is eligible for funding from the authority. exchanged for the definitive bonds. The Treasurer may sell any bonds, evidenced,shall be payable solely from revenues of the authority,including notes,or other evidence ti indebtedness at a rice below their par value. subject to any personal liability or accountability by reason of the issuance SEC. 7. Section 26005 of the Public Resources Code is amended the roceeds rom the assessmentim osed ursuanttoPart21(commencingP P ` to read: p f p p � thereof. with Section 42000)of Division 2 of the Revenue and Taxation Code and Howevet,the 26005. All members of the authority shall serve thereon without the proceeds of its negotiable bonds,notes,debentures,or other securities; these purposes ( The authority shall have power out of any funds available for resolution or resolutions authorizing bonds or an issue ' oses to purchase its bonds or notes. The authority may hold, compensation as members of the authority,'except for the members (d) Any g any y pledge,cancel, or resell those bonds, subject to.and in accordance with appointed pursuant to paragraphs(4),to(9),inclusive,of subdivision(b) total debt outstanding. of bonds may contain provisions,which shall be a part of the contract with the holders of the bonds to be authorized,as to all of the following: agreements with bondholders. e• of Section 26004,who shall be entitled to receive a per diem,establishedused g by the Department of Personnel Administration,based on comparable per • (1) Pledging the full faith and credit of the authority or pledging all or SEC. 14. Section 26024 of the Public Resources Code is amended eithertheto read diem paid to members of similar state boards and commissions,for each rovisions have been inade for-prepayment any part,of the revenues of any project or any revenue-producing contract : day actually spent in the discharge of the member's duties.All membershich thatthebondIVA rt or contracts made by the authority with any individual, panership, 26024. Bonds issued under the provisions of this division shall not Of the authority shall be entitled to reasonable and necessary travel and corporation, or association or other body, public or private, or other be deemed to constitute a debt or liability of the state or of any political other expenses incurred in the performance of the member's duties. sidered moneys of the authority, including moneys deposited in the California subdivision thereof,other than the authority,or a pledge of the faith and SEC. 8. Section 26006 of the Public Resources Code is amended (2) in ebtedness that is inetined to refund existing'debts,exeePH-0 Energy Independence Fund created by Article XXXVI of the California credit of the state or of any such political subdivision, other than the to read: the extent that the indebtedness exceeds the ametint of those debts. Constitution,to secure the payment of the bonds or of any particular issue authority, but shall be payable solely from the funds herein provided the SEC. 12. Section 26021 of the Public Resources Code is repealed. of bonds,subject to the agreements with bondholders as may then exist. therefor.All such bonds shall contain on the face thereof a statement to 26006. The provisions of this division shall be administered by the following effect: e i • authority which shall have and is hereby vested with all powers reasonably , (2) The rentals,fees,purchase payments,loan repayments,and other of the_ni-__._- charges to be charged,and the amounts to be raised in each year b the g a provided "Neither the faith and credit nor the taxing power of the State of necessary to carry out the powers and responsibilities expressly granted g g Y Y ^Ln char es,and the use and dis osition of the revenues. California is pledged to the payment of the principal of or interest on this or imposed upon it under this division and under Article XXXVI of the g P California Constitution. SEC. 13. Section 26022 of the Public Resources Code is amended (3) The setting aside of reserves or sinking funds,and the regulation bond." SEC. 9. Section 26008 of the Public Resources Code is amended to read: and disposition of the reserves or sinking funds. Except as set forth in Sections 26022 and 26049,the issuance of to read: 26022. (a) The authority is authorized from time to time to issue (4) Limitations on the right of the authority or its agent to restrict and bonds under the provisions of this division shall not directly or indirectly its negotiable bonds, notes, debentures, or other securities (hereinafter regulate the use of the project or projects to be financed out of the proceeds or contingently obligate the state or any political subdivision thereof to 26008. (a) The authority levy or to pledge an form of taxation whatever therefor or to make an collectively called"bonds") for any of its purposes. The bonds may be of the bonds or any particular issue of bonds. y P g Y y s aivisivr�shall appoint a chief executive authorized, without limiting the generality of the foregoing, to finance appropriation for their payment. Nothing contained in this,section shall duties imposed upen it by th (5) Limitations on the purpose to which the proceeds of sale of any Prevent nor be construed to prevent the authority from pledging its full Officer with substantial business experience in,the private sector at a a single project for a single participating party, a series of projects for issue of bonds then or thereafter to be issued may be applied and pledging senior management level,preferably with experience in new technology, a single participating party, a single project for several participating those proceeds to secure the payment of the bonds or an issue of the faith and credit to the payment of bonds or issue of bonds authorized g P f Y P gy, P P Y Y pursuant to this division. to serve the authority, as soon as reasonably practicable. The expertise parties,or several projects for several participating parties and e finance bonds. direetor chief executive officer shall serve at the pleasure of the authority expenditures authorized by the Clean Alternative Energy Act as set forth in (6) Limitations on the issuance of additional bonds,the terms upon SEC.15. ' Section 26029.4 of the Public Resources Code is amended Chapter 4(commencing with Section of as .In anticipation of the sale to which additional bonds may be issued and secured and the refunding of to read: The anthority may delegate to • ' poweL al-4 Shftll mmleiv�e stielt eempensation as shall be fixed b�t e authority. bonds as authorized by Section 2602 � 26029.4. Subject to Section 26029.6,the existence of the authority 0^Li,the authority may issue ne otiable bond anticipation notes outstanding bonds. contracts on behalf-a��.The chief executive officer's primary y Y g P may be terminated at any time by the Legislature no sooner than January notes responsibilities shall be to hire, direct, and manage the authority's staff- and may renew the notes from time to time.The bond anticipation (7) The procedure,if any,by which the terms of any contract with P 1, 2027, or after the assets of the authority have been fully expended, may be aid from the proceeds of sale of the bonds of the authority in bondholders may be amended or abrogated,the amount of bonds the holders to develop the authority's two-year and ten-year strategic plans pursuant Y. P P Y whichever is later. Upon dissolution of the authority, the title to all to Section 26045;to develop and recommend standards and procedures, anticipation of which they were issued.Notes and agreements relating to of which must consent thereto,and the manner in which that consent may properties owned by it shall,subject to the interests of any participating the notes and bond anticipation notes,hereinafter collectively called notes, be given. parties therein,vest in and become the property of the State of California including a competitive selection process, to`govern the authority's consideration and award of incentives including,but not limited to,grants, and the resolution or resolutions authorizing the notes may contain any (8) Limitations on expenditures for operating, administrative,.or and shall not inure to the benefit of any private party. Notwithstanding loans,loan guarantees,credits,and buydowns pursuant to Section 26045; provisions,conditions or limitations which a bond,agreement relating to other expenses of the authority. the foregoing, so long as any bonds or other obligations secured by the to develop recommendations for the award of incentives including,but not the bond, and bond resolution of the authority may contain.However,a (9) Defining the acts or omissions to act which constitute a default assessment imposed by Part 21 (commencing with Section 42000) of limited to,grants,loans,loan guarantees,credits,and buydowns pursuant note or renewal of the note shall mature at a time not exceeding two years in the duties of the authority to holders of its obligations and providing the Division 2 of the Revenue and Taxation Code remain outstanding,neither Text of Proposed Laws 1 163 1621 Text of Proposed Laws* *** i TEXT OF PROPOSED LAWS * * * Td ROPOSITION 87 CONTINUED) * * * TEXT OF PROPOSED LAWS the Legislature nor the people may reduce or eliminate the assessment, (e) Adopt procedures and standards to monitor recipients (b) "Buydown"means a payment to cover up to 100 percent of the associated with the issuance or carrying of any bonds,bond anticipation and this pledge may be included in the proceedings of any such bonds as a incentives including, but not limited to, grants, loans, loan guaranteefference in the purchase price between a clean alternative fuel vehicle notes, or other obligations and indebtedness of the authority, and any covenant with the holders ofsuch bonds. credits,and buydowns,awarded by the authority. a comparable dedicated gasoline or diesel vehicle. other costs determined by the authority to be necessary to carry out the SEC. 16. Section 26033 of the Public Resources Code is amended (f) Adopt objective standards to measure the authority's success (c) "Clean alternative fuels"means fuels for use in transportation financing authorized by this chapter.Notwithstanding any otherprovision to read: meeting the goals of this Act. cluding, but not limited to, hydrogen, methanol, natural gas, ethanol of law,moneys in the Debt Service Account are continuously appropriated, 26033. All moneys received pursuant to the provisions of this (g) Ensure the completion of an annual independent financial blends consisting of at least 85 percent ethanol, and biodiesel blends without regard to fiscal year, to the authority for the repayment of bonds, division, whether as proceeds from the sale of bonds, notes, or other audit of the authority's operations and issue public reports regarding the consisting of at least 20 percent biodiesel that, when used in vehicles, other obligations or indebtedness or ancillary obligations or other costs of evidences of indebtedness or as revenues, shall be deemed to be trust authority's activities: have been demonstrated, to the satisfaction of the authority, to have the the authority relating to outstanding bonds and may be held by a trustee as ability to meet applicable vehicular emission standards and that,relative authorized by Section 26023. funds to be held and applied solely as provided in this division.Any bank (h) Notwithstanding Section 11005 of the Government Code, to petroleum use,produce no net material increase in air pollution,water or trust company with which such moneys shall be deposited shall act as accept additional revenue and real and personal property including, P P P (b) After funds have been deposited in the Debt Service Account trustee of such moneys and shall hold and apply the same for the purposes pollution, or any other substances that are known to damage human pursuant to subdivision (a) in any month, all funds deposited in, the Y PP Y P P but not limited to,gifts, bequests, royalties, interest, and appropriations health,and reduceglobal warm ingpollution considering the full fuel-cycle California Energy Independence Fund for that month,except as otherwise hereof,subject to such regulations as the resolution authorizing the bonds to supplement the authority's funding. Notwithstanding Section 26049, assessment. Any fuel not specifically mentioned above must significantly provided by this Act,shall be allocated as follows: of any issue or the trust agreements securing such bonds may provide.The donors may earmarkgifts for a particular purpose authorized by this Act. decrease global warming pollution emissions compared to petroleum, o proceeds from the assessment imposed pursuant to Part 21 (commencing g g P P P l Fifty-seven and one-half percent hereby created. to the Gasoline and (i) Appoint one advisory review committee of no more,than nine considering the full fuel-cycle assessment, in order to be considered a Diesel Use Reduction Account,which is hereb created. with Section 42000)of Division 2 of the Revenue and Taxation Code,the members or each account established pursuant to subdivision b Y f P O clean alternative fuel. proceeds from the sale of bonds,notes,or other evidences of indebtedness of Section 26049 to assist the authority in its review of applications (2) Twenty-six and three-quarters percent(26.75%)to the Research secured by the assessment, and any revenues generated by the Clean .for funding, if the authority determines that it is necessary to obtain me "Clean alternative fuel infrastructure" means facilities and and Innovation Acceleration Account,which is hereby.created. Alternative Energy Act shall be deposited in the California Energy equipment dedicated to clean alternative fuel production, storage, and o expertise in market dynamics or technology that'is not available within (3) Nine and three-quarters percent(9.75/0)to the Commercialization Independence Fund, as established by Section 4 of Article XXXVI of the distribution. Acceleration Account,which is hereby the authority.Members of review committees shall be entitled to receive y created. California Constitution, and shall be used solely for the purposes of the (e) "Clean alternative fuel vehicles" means light-, medium-, and a a per diem, established by the Department of Personnel Administration, (4) Two and one-half percent (2.5/0) to the Vocational Training Clean Alternative Energy Act. Notwithstanding any other provision of based on comparable per diem paid to members of similar state review heavy-duty conversions, convelsion systems, and vehicles powered by Account,which is hereby created. law,proceeds of bonds issued pursuant to this division, including those clean alternative fuels,flexible fuel vehicles, plug-in hybrids powered committees,for each day actually spent in the discharge of the member's (5) Three and one-half percent(3.5%)to the Public Education and deposited in the Clean Energy Independence Fund, may be held b a primarily by electricity,and battery-powered electric vehicles,all of which P gY P Y Y duties,plus reasonable and necessary travel and other expenses incurred Administration Account,which is hereby created. trustee outside the state treasury system as provided by this chapter. have been demonstrated, to the satisfaction of the authority, to have the in the performance of the mcontrol duties.Members of the advisory review (c) Any funds allocated to the accounts established by paragraphs �. ability tomeeta licablevehicularemissio standards that,r b SEC. 17. Chapter 4(commencing with Section 26043)is added to committees and any entity controlled by a member shall not be eligible to Y PP n s da and elatz a to Division 16 of the Public Resources Code,to read: petroleum use,produce no net material increase in air pollution(including (1) to (5), inclusive, of subdivision (b) that are not by or apply for any incentive including,but not limited to,any grant,loan,loan aned in end guarantee, credit, or buydown awarded by the authority or any contract global warming pollution), water pollution, or any other substances that expended Yfiscal year shall remain in the same account fo r the next CHAPTER 4. CLEAN ALTERNATIVE ENERGY PROGRAM made by the authority. are known to damage human health and which meet all applicable safety fiscal year, except as provided in subdivision (d)of Section 26058. Once certifications and standards necessary to operate in California. all expenditures authorized by this Act have been made from the accounts Article 1. General Provisions (j) Apply for federal matching funds where possible. (fi "Energy efficiency technologies" means methods of obtaining established by paragraphs (1) to (5), inclusive, of subdivision (b), all (k) Adopt regulations pursuant to the Administrative Procedure Act more or better services from less d as(Ch energy, compared with typical current Proceeds from the California Energy Independence Fund Assessment shall 35'( menin with Sec 11340) Pt 1 Div. 3 Title 2 Gov. C. . comcg . , . , . , , . .) e deposited in the Debt Service Account established b subdivision a 26043. This chapter implements the Clean Alternative Energy Act, practices in California. - b P y () including ArticleXXXVI ofthe California Constitution.As used throughout necessary to implement this Act.In order to expedite the commencement (g) "Full fuel-cycle assessment"means evaluating and comparing until all obligations secured or payable from such account have been paid of the program mandated by this Act, , the authority may adopt or payment has been provided for. this chapter, 'Act"refers to the Clean Alternative Energy Act. however, the full environmental and health impacts of each step in the life cycle of a interim regulations, including standards, without complying with the (d) Funds deposited in the accounts of the California Energy 26044. This chapter shall govern the expenditure of all revenues fuel,including,but not limited to,all of the following: procedures set forth in the Administrative Procedure Act. The interim Independence Fund created in subdivision(b)shall be used to supplement, deposited in the California Energy Independence Fund. regulations shall remain in a ect or 270 days unless earlier superseded (1) Feedstock extraction,transport,and storage.g .ff t t f Y P andnottosupplant,existingstatefundingforresearch,vocationaltraining, 26045. In addition to its other powers and duties, the authority by regulations adopted pursuant to the Administrative Procedure Act. (2) Fuel production,distribution,transport,and storage. and technological development and deployment involving petroleum shallperform thefollowingfunctions: 26046. The authority shall take all actions authorized by this (3) Vehicle operation,including refueling,combustion or conversion, reduction, energy efficiency,and renewable energy. To maximize the use (a) Within nine months of the effective date of the Act, and every chapter by a majority vote of a quorum of the authority,except as required and evaporation. of available funds,the authority shall coor4inate its expenditure of funds two years thereafter, adopt or modify two-year and ten-year strategic by subdivision(l)of Section 26050 and subdivision(c)of Section 26056. (4) Electricity generation; distribution, and storage, when used in in the California Energy Independence Fund.with other state agencies to plans to guide the authority's funding decisions in the areas of petroleum 26047. Section 1090 of the Government Code shall not apply to vehicles for transportation. avoid duplication and to ensure that the funds are expended efficiently and. use reduction, academic research and vocational training, technology any incentive including, but not limited to,a grant, loan, loan guarantee, (h) "Petroleum reduction" means methods of reducing total efficaciously. innovation, and public education in order to meet the goals of this Act credit,or buydown,or contract awarded by the authority pursuant to this projected petroleum use in California either through increased energy 26050. Based on the standards set forth in Section 26056,'the within 10 years of the adoption of the authority's initial strategic plans. chapter except where both o the following conditions are met: ffz y f f authority may us'e the funds in the Gasoline and Diesel Use Reduction , p p f f g efficiency,,clean alternative fuels,or a combination o both. Y Y (b) Adopt procedures and standards, including a competitive a The member has a nancial interest in an incentive or contract. Account for the following categories of expenditures,based on the relative selection process, to govern the authority's consideration and award o O fi (i) "Renewable energy technologies" means energy production p g y' f merit in petroleum reduction of transportation-related applications to the incentives including, not limited to, rants, loans, loan guarantees, (b) The member fails to recuse himself or herself from making, techniques, products or systems, distribution techniques, products or g g g authority for funding from this account:- � credits,and buydowns. The incentives approved by the authority shall not Participating in making,or in any way attempting to use his or her official systems,and transportation machinery,products or systems,all of which � credits, deemed to be contracts subject to the Public Contract Code. position to influence a decision on the incentive or contract. utilize solely energy resources that are naturally regenerated over a (a) Market-based incentives including,but not limited to,loans,loan be short time scale and delivered directly from the sun (such as thermal, guarantees,credits,andbuydowns tofleets andindividualsfor thepurchase (c) Award incentives including, but not limited to, grants, loans, photochemical, and photoelectric), indirectly from the sun such as of clean alternative fuel vehicles sold in California.For buydowns to state loan guarantees,credits, and buydowns, through a competitive selection Article 2. Definitions P P ) Y g Y g P wind, hydropower facilities of 30MW or less that are consistent with and local government agency fleets,the authority shall give preference to process designed to achieve the objectives of this Act within 10 years of subparagraph D o ar school bus, emergency services vehicle, waste disposal the date o adoption o the authority's initial strategic plans. For loans 26048. As used in this Act, the following terms shall have the ( ) fP agraph(3)of (b)of Section 25743 of g Y p sal truck, and mass i f p fg following meanings: the Public Resources Code, and photosynthetic energy stored in biomass transit bus fleets. Other than these preference categories, buydowns will and loan guarantees, to the extent permitted under California law, the f g consistent with subdivisions�(d) and (f) of Section 25743 of the Public be market-based and subject to the authority determining that the buydown authorityshall use all prudent means to maximize the impact o the loans (a) 'Ancillary obligation" means an obligation of the authority will significantlyassist the technology to achieve unsubsidized market P P f entered into in connection with an bonds issued under this division, Resources Code),or from other natural movements or mechanisms of the gY and loan guarantees by recycling funds or remarketing loans or loan Y environment, such as geothermal and tidal energy. Renewable energy competitiveness.Demonstration projects are discouraged. guarantees. including the following: g gY gY I 8 technologies do not include technologies that use energy resources,derived (b) Production incentives including, but not limited to, loans, loan (d) Expend four billion dollars($4,000,000,000)within ten years of (1) A credit enhancement or liquidity agreement,including any credit from fossil fuels, waste products from fossil sources, or waste products guarantees,and creditsfor clean alternativefuelproduction in California, the date of adoption of the authority's initial strategic plans to achieve the enhancement or liquidity agreement in the form of bond insurance, letter from inorganic sources. excluding the production of electricity, except clean fuel cell based objectives of the Act from either the proceeds of bonds or other obligations of credit, standby bond purchase agreement, reimbursement agreement, electricity production. of the authority or from the California Energy Independence Fund liquidity facility,or other similar arrangement. Article 3. Allocation o Funds i Assessment deposited in the accounts established pursuant to subdivision (2) A remarketing agreement. f p Incentives including, but not limited loans, loan guarantees, � credits, and grants for the construction of publicly accessible clean (b)of Section 26049. This amount shall not include the costs of repaying (3) An auction agent agreement. 26049. (a) From the revenues generated b the California g yEnergy alternative fuel refueling stations, including refueling stations that sell _ indebtedness associated with the Clean Alternative Energy Act,including (4) A broker-dealer agreement or other agreement relating to the Independence-Fund Assessment, there shall first be deposited in each ethanol blends consisting of at least 85 percent ethanol(E-85)sufficient principal, interest, ancillary obligations, and other costs of any bonds marketing of the bonds. calendar month into the Debt Service Account of the California Energy in number to match the existing supply of E-85 vehicles in,California issued pursuant to Division 16(commencing with Section 26000)of the Independence Assessment Fund,which account is hereby created,moneys based on the ratio o diesel vehicles to diesel fuel stations, and electric Public Resources Code.The authorityshall ex end an additional amounts (6) An interest rate or other type o swap p hedging contract. P Y Y f P Y in such an amount as the authority determines and notifies the State vehicle chargers using similar criteria. The authority should consider remainingin the California Ener Inde Independence Fund in urtherance o (6) An investment agreement, forward purchase agreement, or Energy P f f Board of Equalization in writing is necessary and appropriate to pay the issuing suitable requests for proposals for refueling stations as soon as . the purposes o this Act. similar structured investment contract. P P f debt service on any outstanding bonds, bond anticipation notes,or other practicable. obligations and indebtedness of the authority, together with any ancillary (d) Incentives including, but not limited to, loans, loan guarantees, 1 obligations,any coverage factors required by the bond documents,any costs Text of Proposed Laws 1 165 1641 Text of Proposed Laws *** I �� i TEXT'OF PROPOSED LAWS * * rauthority ION 87 CONTINUED) * * TEXT OF PROPOSED LAWS and grants for the installation of publicly accessible clean alternative fuel buydowns,and shall permit the authority to discontinue funding or to takependitures made pursuant to Section 26050 shall be based one hundred million dollars ($100,000,000). The authority shall require infrastructure. other action to ensure the purposes of this Act are being met. itive selection process,established pursuant to subdivision all recipients of funding for facilities to pay all workers employed on the (e) Grants and loans to private enterprises for research involving 26056. Standards for Gasoline and Diesel Use Reduction Account26045. Pursuant to the competitive selection process, the construction or modification of the facility the general prevailing rate of clean alternative fuels and clean alternative fuel vehicles in California. Expenditures. ,at a minimum: per diem wages for work of a similar character in the locality in which 0) Other expenditures which the authority determines, by a vote of (a) The authority shall make expenditures pursuant to Section 26050 (1) Ensure that the expenditure does not supplant existing state work on the facility is performed and not less than-the general prevailing seven or more members ofthe authority,represent urgent or extraordinary consistent with the goal of reducing the rate of petroleum consumption funding for the reduction of petroleum consumption in California. rate ofper diem wages for holiday and overtime work fixed as provided in opportunities involving vehicle or fuel technologies that will advance the in California by 25 percent within 10 years of the date of the authority's (2) Evaluate the quality of the proposal for funding, including the Chapter I (commencing with Section 1720)of Part 7 of Division 2 of the goal of reducing the use of petroleum transportation fuels in California adoption of an initial strategic plan pursuant to this section,as compared availability of private matching funds, and the potential for achieving Labor Code. from 2005 levels by ten billion(10,000,000,000)gallons over 10 years. with California's current sixteen billion (16,000,000,000)gallon annual sign cant results, including the level of petroleum reduction within (6) Ensure that the expenditure is consistent with the two-year and 26051. Based on the standards set forth in Section 26057, the rate of consumption, or roughly four billion (4,000,000,000)gallons of the state that is expected to be achieved as a result of the expenditure. ten-year strategic plans adopted by the authority. authority shall use the funds in the Research and Innovation Acceleration Petroleum transportation fuels per year by 2017, and causing permanent Proposals with significant business validation and leverage from private 26058. Standards for Commercialization Acceleration Account Account to make grants to California universities for facilities, post- andlong-term reductionsinpetroleumconsumptioninCalifornia.The total equity funding or subordinate debt funding from private sources will be Expenditures. baccalaureate student research training grants,and research,performed reduction goal shall be ten billion(10,000,000,000)gallons of petroleum prioritized and given preference to establish the market viability of the (a) The authority shall make expenditures pursuant to Section and located wholly on the contiguous campus of the university, to transportation fuels over 10 years. Prior to making any expenditure proposals. 26052 consistent with the goal of accelerating the commercialization,of improve the economic viability and accelerate the commercialization of pursuant to Section 26050, the authority shall adopt a strategic plan (3) Evaluate the unit cost of petroleum reduction of the proposal economically viable, innovative renewable energy technologies, energy renewable energy technologies,such as solar,geothermal,wind,and wave pursuant to subdivision(a)of Section 26045,as follows: and the potential of the proposal to achieve unsubsidized market efficiency technologies, clean alternative fuels, and clean alternative technologies,and energy efficiency technologies in buildings,equipment, (1) Within nine months of the effective date of this Act,the authority, competitiveness and pervasive acceptance,adjusted or the risk and time electricitygeneration,and vehicles. in consultation with the California Air Resources Board, the California P P P J f fuel vehicles in California within 10 years of the effective date t this Act, g value of money. � by providing funding for the one-time or start-up costs of introducing 26052. Based on the standards set forth in Section 26058, the Energy Commission, and the Public Utilities Commission, shall adopt (4) Evaluate the probability that the proposal will result in a renewable energy technologies, energy efficiency technologies, clean authority shall use the funds in the Commercialization Acceleration an Integrated Resource Plan for petroleum reduction in•California. The sustained, unsubsidized market-competitive technology or technologies alternative fuels, and clean.alternative fuel vehicles including, but not Account to provide incentives including, but not limited to, loans, loan Integrated Resource Plan shall be based on the best estimates of the that can achieve substantial consumer or business acceptance beyond the limited to,the certification of products,vehicles,and distribution systems, guarantees,and grants to fund the one-time or start-up costs of introducing potential for unsubsidized market acceptance of technologies,products,or subsidy or incentive period. and for other costs that will accelerate the production and distribution petroleum reduction and renewable energy technologies,energy efficiency services within 10 years of the date of the adoption of the initial integrated f Y P g(5) Ensure that the expenditure is consistent with the two-year and o commercially viable products and technologies to the market.Prior to technologies, clean alternative fuels, and clean alternative fuel vehicles Resource Plan. ten-year strategic plans adopted by the authority. making any expenditures pursuant to Section 26052, the authority shall including, but not limited to, the certification of products, vehicles, and (2) The Integrated Resource Plan shall outline a strategy for the adopt a strategic plan pursuant to subdivision(a)of Section 26045. distribution systems,and for other costs that will accelerate the production allocation of funds to programs with the highest return opportunities, 26057. Standards for Research and Innovation Acceleration Account and distribution of commercially viable products and technologies to the using the financing powers provided to the authority by this division. The Expenditures. a All expenditures made pursuant bl Section pursuant shall be based a The authority shall make expenditures pursuant to Section upon a competitive selection process,established pursuant to subdivision market and that,preferably, will promote California-based job creation, Integrated Resource Plan shall maximize thepetroleum use reduction while O Y P P (b)of Section 26045. Pursuant to the competitive selection process, the employment,and economic development. I considering the greenhouse gas reduction benefits of clean alternative 26051 consistent with the goal of improving the economic viability, and accelerating the commercialization, o renewable energy technologies, authority shall,at a minimum: 26053. Based on the standards in Section 26059,the authority shall fuels and clean alternative fuel vehicles. The Integrated Resource Plan g f gY g (1).Ensure that the expenditure will advance the goal of use the•f unds in the Vocational Training Account to:A shall also evaluate the expenditure of funds for clean alternative fuel such as solar, geothermal, wind, and wave technologies, and energy efficiency technologies in buildings, commercializing economically viable renewable energy technologies, vehicles and shall consider allocating funds necessary to balance the fh Y g g, equipment, electricity generation, (a) Make grants through.the Office of the Chancellor el Community deployment of clean alternative fuel vehicles with accessibility to clean and vehicles.Prior to making any expenditures pursuant to Section 26051, energy efficiency technologies,clean alternative fuels,or clean alternative Colleges to California community colleges for staff development and the authority shall adopt a strategic plan pursuant to subdivision a of fuel vehicles in California. facilities to train students to work with renewable energy technologies, alternative fuels. Y P g P P O f gY g Section 26045. (2) Evaluate the potential that the expenditure will achieve energyefficiency technologies, and clean alternative fuels, in buildings, (3) The Integrated Resource Plan shall be developed with input from ffi y g f g significant results, including how the expenditure will aid or result in equipment,electricity generation,and vehicles. interested parties at scheduled public hearitrgs of the authority under the (b) All expenditures made pursuant bl Section 26051 shall be based. Y g upon a competitive selection r bringing commercially viable renewable energy technologies, energy leadership of the Chief Executive Officer of the authority. The authority P P process,established pursuant to subdivision (e Make grants through the Office of the Chancellor to Community shall update the plan every two years and shall amend the plan to ensure (b)of Section 26045. Pursuant to the competitive selection process, the efficiency technologies, clean alternative fuels, or clean alternative fuel Colleges to California community colleges for tuition assistance for low- - authorit shall,at a minimum: vehicles to the market in California,within a reasonable time frame from that it remains consistent with California Air Resources Board regulations Y income students and formerfossil fuel energy workers and certified vehicle the date of the expenditure. mechanics to obtain training to work with renewable energy technologies, and consistent with the priorities and goals of this Act. (1) Ensure that the expenditure is for research in renewable energy g gY g technologies or energy efficiency g (3) Establish that it is reasonably likely that a significant share of such as solar,geothermal,wind,and wave technologies,clean alternative (4) The Integrated Resource Plan shall contain an assessment g gy ffi y technologies. g g � the finished technology or product for which the funds are allocated will fuels, and energy efficiency technologies, in buildings, equipment, of the potential of expenditures to meet or exceed the goal of reducing (2) Ensure that the expenditure does not supplant existing state be available to, or will be deployed in, California or that a significant electricity generation,and vehicles. petroleum consumption by ten billion (10,000,000,000)gallons over 10 funding for research in renewable energy technologies or energy share of all components used in the finished technology or product will be 26054. Based on the standards in Section 26060,the authority shall Years.Expenditures shall only be made for items consistent with meeting efficiency technologies and that the authority coordinates its expenditures manufactured in California. use the funds in the Public Education and Administration Account to: or exceeding this goal. Expenditures shall also be consistent with, and with other state agencies,including the Public Interest Energy Research, (4) Evaluate the cost, adjusted for time value, of energy developed shall receive priority according to their potential to meet or exceed, Demonstration, and Development Program, established by Chapter (a) Educate the California public regarding the importance of the emissions targets and goals set forth in Executive Order S-3-05, as 7.1.(commencing with Section 25620) of Division 15, to maximize the or saved by the proposal relative to its ability to advance the objectives of energy efficiency technologies, renewable energy technologies, and full published,and the emissions targets and goals setforth in Sections 1900, effectiveness of the expenditures and to avoid duplication of effort. the Commercialization Acceleration Account. - • fuel-cycle petroleum reduction. 1961,and 1961.1 o Title 13 o the California Code o Re ulations,in effect (5) Evaluate the probability that the proposal will result in a • f ff g .ff (3) Evaluate the quality of the research proposal, the potential (b) Administer the authority. as of December 1,2005.if these emissions-targets and goals are replaced for achieving significant results, including consideration of how the sustained, unsubsidized market-competitive technology or technologies (c) Monitor the implementation of the California Energy - by more stringent emissions targets and goals prior to dissolution of the expenditure will aid or result in the commercialization, or significant that can achieve substantial consumer or business acceptance. Independence Fund Assessment and refer any evidence that oil producers authority,the more stringent emissions targets and goals shall be used to and permanent deployment, of renewable energy technologies or energy (6) Ensure that the expenditure is consistent with the two-year and are attempting to gouge consumers by passing the assessment on to establish priority for all subsequent expenditures under Section 26050. efficiency technologies in California,and the time frame for achieving that ten-year strategic plans adopted by the authority. consumers in the form of higher prices for oil,gasoline, or diesel fuel to The full fuel-cycle assessment should be-applied to all fuels, including goal. the Board of Equalization for investigation. electricity as a transportation fuel. Different methods of producing a ( All expenditures from the Commercialization Acceleration (4) Give funding priority to research proposals that utilize more Account require the recipient of the expenditure td provide matching specific fuel may have different greenhouse gas emission reductions,and abundant renewable energy resources and that offer the greatest potential funds equal to at least 50 percent of the expenditure, except that in the Article 4. Standards the various methods should be duly considered in evaluating the full fuel- for technological breakthroughs. Priority shall additionally be given to case of loans and loan guarantees, the recipient may provide equity cycle for that fuel.In the case of two vehicles with equivalentfull fuel-cycle research proposals that offer the greatest potential to meet or exceed the or subordinated debt equal to at least 25 percent of the loan or loan 26055. The authorityshall establish the following standards: greenhouse gas emissions,priority shall be given to that which involves goals f () () guarantee. This constraint will not be applicable f f g g Is set forth in: a Executive Order S-3-O5; b Sections 1900, 1961, g pp icable to the distribution or the lowest cost to the account. and 1961.1 o Title 13 o the Cali f g effect f a clean alternative fuel equal to approximately the first 15 percent of the (a) Intellectual Property Rights. The authority shall establish f f forma Code o Regulations,in a ect as o standards requiring that all research grants made pursuant to this Act shall (5) All expenditures made by the authority under this section shall December 1,2005;or(c)Article 16(commencing with Section 399.11)of distribution of the gasoline distribution sytem. be subject to intellectual property agreements that balance the opportunity be consistent with the strategy outlined in the Integrated Resource Plan. Chapter 2.3 of Part I of Division 1 of the Public Utilities Code,in effect as (d) Any funds that remain in the account after 10 years shall be of the State of California to benefit from the patents,royalties,and licenses (b) All expenditures on clean alternative fuel infrastructure and of December I,2005.Research proposals that offer the greatest potential divided equally between the Gasoline and Diesel Use Reduction Account that result from the research with the need to assure that such research is electric vehicle chargers shall be restricted to those that support clean to meet or exceed the goals setforth in subdivisions (a)to (c), inclusive, and the Research and Innovation Acceleration Account. not unreasonably hindered by those intellectual property agreements. alternative fuel vehicles that are available for sale and are producible in' shall receive the highest priority for funding,followed by those research 26059. Standards for Vocational Training Account Expenditures. (b) Oversight ofAwards. The authority shall establish standards for substantial volumes. proposals that offer the greatestpotential to meet or exceed the targets and (a) The authority shall make expenditures pursuant to Section 26053 the oversight of all incentives including,but not limited to,.grants, loans, (c) Expenditures for buydowns shall be limited to 25 percent of the goals setforth in two ofsubdivisions(a)to(c),inclusive,followed by those i proposals that offer the greatest potential to meet or exceed the tar consistent with the goal of training students to work with renewable energy loan guarantees, credits, and buydowns made under this Act to ensure total amount deposited in the Gasoline and Diesel Use Reduction Account, P P ff g P gets and technologies, such as solar, geothermal, wind, and wave technologies, compliance with all.applicable terms and requirements. The standards unless the authority determines, by a two-thirds'vote, that additional goals setforth in one of subdivisions(a)to(c),inclusive. or energy efficiency technologies, in buildings, equipment, electricity shall include periodic reporting, including financial and performance expenditures are warranted in order to most cost-effectively achieve the (5) Ensure that allfunds to support buildings andpermanentfacilities generation, clean alternative fuels, and clean alternative fuel vehicles. audits, by all recipients of incentives, excluding individuals who receive goals of this Act. pursuant to Section 26051 are committed during the first two years of the Prior to making any expenditures pursuant to Section 26053,the authority program, and that such expenditures, in the aggregate, do not exceed shall adopt a strategic plan pursuant to subdivision(a)of Section 26045. 166 1 Text of Proposed Laws i ***Text of Proposed Laws 1167 i TEXT OF PROPOSED LAWS * * * (PROPOSITION 87 CONTINUED) * * * TEXT OF PROPOSED LAWS (b) All expenditures made pursuant to Section 26053 shall be based (b) "Barre[ of oil" means 42 United States gallons or 231 cubic the producer and is a liability of the first purchaser and each subsequent secured by the assessment created by this part remain outstanding,neither upon a competitive selection process, established pursuant to subdivision inches per gallon computed at a temperature of 60 degrees Fahrenheit. purchaser.Failure of the producer to pay the assessment does not relieve the Legislature nor the people may reduce or eliminate the assessment, (b)of Section 26045. Pursuant to the competitive selection process, the (c) "Board"means the State Board of Equalization. the first purchaser or a subsequent purchaser from liability for the- and this pledge may be included in the proceedings of any such bonds as a y (d) "Consumer" an individual,firm,partnership,association, assessement.A purchaser of oil produced in this state shall satisfy himself covenant with the holders of such bonds. ' authority shall,at minimum: I (1) Ensure that the expenditure is for training in renewable energy or corporation who buys for his, her, or its own use, or for the use of or herself that the assessment on that oil has been or will be paid by the SEC. 19. LEGAL CHALLENGE. person liable for the assessment. technologies, energy efficiency technologies, clean alternative fuels, or another,but not for resale. I Any challenge to the validity of this Act must be filed within six I clean alternative fue veh icles.hicles. (c) The assessment imposed by this part shall not be passed on to months of the effective date of this Act. (e) "First purchaser" means a person who purchases oil from a(2) Ensure that the expenditure does not supplant existing state producer. consumers through higher prices for oil,gasoline, or diesel fuel. At the SEC.20. AMENDMENT. request of the authority, the board shall investigate whether a producer, '3 funding for training in renewable energy technologies, energy efficiency 69 "Gross value"means the sale price at the mouth of the well for The statutory provisions of this Act may be amended to carry out its technologies,clean alternative fuels,or clean alternative fuel vehicles. firsusing the a se s mint a subsequent purchaser has attempted to gouge consumers oil, including any bonus,premium,or other thing in value paid for the oil. by using the assessment as a pretext to materially raise the price of oil, Purpose and intent by statutes approved by atwo-thirds vote of each house (3) Evaluate the quality of the program, the potential for achieving If oil is exchanged for something other than cash,or if there is no sale at gasoline,or diesel fuel. of the Legislature and signed by the Governor. significant results,including consideration of how the expenditure will aid the time of severance,or if the relation between the buyer and the seller is SEC.21. .SEVERABILITY. or result in trainingworkers in renewable energy technologies, energy 42alor 'The assessment imposed by this part shall be in addition to gY g gY such that the consideration paid,if any,is not indicative of the true value any ad valorem taxes imposed by the state,or any ofitspol[tical subdivisions, If any provision of this Act or the application thereof to any person or efficiency technologies, clean alternative fuels, or clean alternative fuel or market price,then the board shall determine the value of the oil subject circumstances is held invalid,including subdivision c of Section 42004 vehicles in California,and the time rame or achieving that goal. or any local business license taxes which may be incurred as a privilege of g ( ) f f g g to the fee, based on the cash price paid to producers for like oil in the ci h f the Revenue and Taxation Code and subdivision severing oil from the earth or doing business in that locality.No equipment, o (c)of Section 26054 of (4) Ensure that the expenditure is consistent with the two-year and vicinity of the well. material, or property shall be exempt from payment of ad valorem tax by the Public Resources Code,that invalidity shall not affect other provisions ten-year strategic plans adopted by the authority. (g) "Oil"means petroleum, or other crude oil, condensate, casing reason of the payment of the gross tax pursuant to this part. or applications of this Act which can be given'effect without the invalid 26060. Standardsfor Public Education and AdministrationAccount head gasoline,or other mineral oil that is mined,produced,or withdrawn provision or application, and to this end the provisions of this Act are 42006. •Two or more producers that are corporations and are Expenditures. from below the surface of the soil or water'in this state. severable. commonly owned or controlled directly or indirectly,as defined in Section (a) The authority shall make expenditures pursuant to Section 26054 (h) "Producer"means any person.who takes oil from the earth or 25105, by the same interests,shall be considered as a single producer for SEC.22. CONFLICTING INITIATIVES. consistent with the goal of educating the public regarding the importance water in this state in any manner;any person who owns,controls,manages, purposes of application of the assessment prescribed by this part. In the event that this measure and another initiative measure or of energy efficiency technologies, renewable energy technologies, and or leases any oil well in,the earth or water of this state;any person who 42007. The California Energy Independence Fund Assessment measures that impose an assessment,royalty,tax,or fee on the extraction ' full life-cycle petroleum reduction, and reporting on the progress of the produces or extracts in any manner any oil by taking it from the earth imposed pursuant to this part does not apply to: of oil or that involve petroleum reduction shall appear on the same program,and ofefficiently administering the authority. or water in this state; any person who acquires the severed oil from a statewide election ballot,the provisions of the other measure or measures O p f f person or a enc exempt from property taxation under the Constitution (in Oil owned or produced on any political shay subdivision-of Gil the state, (b)'At least 28.5 percent o the funds in the Public Education and P g Y P f P P Y shall be deemed'to be in conflict with this measure.In the event that this Administration Account shall be expended for the purpose of public or other laws of the United States or under the Constitution or other laws including that political subdivision's proprietary share of oil produced under,any unit,cooperative,or other pooling agreement. measure receives a greater number of affirmative votes,the provisions of education regarding funded technologies. of the State of California;and any person who.owns an interest,including this measure shall prevail in their entirety,and the provisions of the other a royalty interest, in oil or its value, whether the oil is produced by the (b) Oil produced by a stripper well in any month in which the average measure shall be null and void. person owning the interest or by another on his or her behalf by lease, value of oil is less than$50 per barrel.If in any month the average value of Article 5. Accountability oil is$50.01 or more per barrel,a stripper well shall be subject to a.e contract,or other arrangement. PbJ fe in "Production" means the total gross amount o produced, the amount of 3 percent of the gross value of oil above$50.01. � 26061. (a) In addition to the report required by Section 26017,the O "Pd " h l f oil g Y this d ose b art shall be due and authority shall issue an annual report to the Governor, the Legislature, including the gross amount thereof attributable to a royalty or other 42008. The assessment imposed P The board has broad discretion in payable to the board on a monthly basis.. Qp and the public which sets forth its activities, its accomplishments, and PROPOSITION 8(7 future program directions. Each annual report shall include, but not be (j) "Severed"or "severing means the extraction or withdrawing administering thispart and mayprescribe the manner in which allpayments limited to, the following: the number and dollar amounts of incentives from below the surface of the earth or water of any oil,whether extraction are made to the state under this part,and the board may prescribe theforms This initiative measure is submitted to the people in accordance with and reporting requirements as necessary to implement the assessment, the provisions of Section 8 of Article II of the California Constitution. including, but not limited to,grants, loans, loan guarantees, credits,and or withdrawal shall be by natural flow, mechanical flow,forced flow, including, but not limited to, information regarding the location of the This initiative measure expressly amends the California Constitution buy downs; the recipients of incentives for the prior year;the authority's pumping, or any other means employed c get the oil from below the well by county,the gross amount of oil produced, the price paid therefor, by adding sections thereto;and amends a section of the Government Code, administrative expenses; a summary hn research findings, including surface h the earth or water and shall include the withdrawing by any the prevailing market price of oil,and the amount of assessment due. The, and adds sections to the Education Code;therloore,new provisions proposed. promising new research areas and technological_innovations; and an means whatsoever of oil upon which the assessment has not been paid, assessment of the relationship between the authority's award of incentives from any surface reservoir,natural or artificial,or from a water surface. board may employ auditors, investigators, engineers, and other persons to be added are printed in italic type to indicate that they are new. to engage in all activities necessary for the implementation of this part, and the authority's strategic plan. (k) "Stripper well"means a well that has been certified by the board including to verify reports and investigate the affairs of producers and PROPOSED LAW (b) The authority shall annually commission an .independent as an oil well incapable of producing an average of more than ten barrels purchasers to determine whether the assessment imposed by this part is financial audit of its activities from a certified public'accountant which of oil per day during the entire taxable month. Once a well has been properly reported and paid.In all proceedings under this part,the board SECTION 1. Title shall be provided to the Controller,who shall review the audit and annually certified as a stripper well,such stripper well shall remain certified as a may act on behal o the eo le o the State o California. issue a public report of that review. stripper well until the well produces an average of more than 10 barrels of y f f p p f fThis measure shall be known and may be cited as the Classroom (c) There shall be a Citizens'Financial Accountability Oversight oil per day during an entire taxable month. 42009. The board shall enforce the provisions of this part and may Learning and Accountability Act. • Committee chaired by the Controller. This committee shall review the 42002. Effective January 1, 2007, and `except as provided prescribe, adopt, and enforce rules and regulations, including, but not SEC.2. Findings and Declaration of Purpose • • limited to, the payment of interest, the imposition of penalties, and any • annual financial audit and the Controller's report and evaluation of that for in Section 42007, there is hereby imposed the California Energy The People of the State of California find and declare that: audit. The Controller, the Treasurer, the President pro Tem ore o the Independence Fund Assessment upon the privilege o severing oil from other action permitted by Sections 6451 to slap, inclusive, d Sections P P f P p p g f g f 38401 to 38901, inclusive, whichever are most applicable as determined (a) California students are falling behind,ranking among the bottom Senate,the Speaker of the Assembly,and the chairperson of the authority the earth or water in this state for sale, transport, consumption,storage, by the board,relating to the application,administration,and enforcement six states in reading and math. In the nation's five biggest states, only shall each appoint a public member ofthe committee. The committee shall profit,or use. The assessment shall be borne ratably by all persons within of this part. California students score below average on every national assessment of provide recommendations regarding the authority'sfinancial practices and the term 'Producer"as that term is defined in subdivision(h)of Section educational progress. • • performance. The Controller shall provide staff support. The committee 42001. The fee shall be applied to all portions of the gross value of each 42010. (a) All assessments, interest,penalties,and other amounts • • shall hold a ublic°meetin , with appropriate notice,and a formal public barrel o oil severed as follows: collected pursuant to this part'shall be deposited in the California Energy (e Independent research indicates that California's poor student p 8f p f f Independence Fund,which is established by ArticleXXXVloftheCalifornia achievement is caused, in part, by inadequate resources for public comment period. The committee shall evaluate public comments and (a) One and one-half percent(1.5%)of the gross value of oil from Constitution.Before allocating funds pursuant to subdivision(a)or(b)of education, including low funding levels, high class sizes, inadequate include appropriate summaries in its annual report. $10 to$25 per barrel. Section 26049 of the Public Resources Code,the authority shall reimburse facilities, and students with relatively greater needs. Education funding SEC. 18. Part 21 (commencing with Section 42000) is added to (b) Three percent(3.0%)of the gross value of oil from$25.01 to$40 the board for expenses incurred in the administration and collection of the in California is chronically below the national average, even though Division 2 of the Revenue and Taxation Code,to read: per barrel. r I assessment imposed by this part.The board shall transfer moneys received California students are expected to meet some of the highest academic (c) Four and one-half percent(4.5%)of the gross value of oil from from the aforementioned sources to the California Energy Independence standards in the country. PART 21. CALIFORNIA ENERGY INDEPENDENCE FUND $40.01 to$60 per barrel. Fund at least once per calendar month. (c) California's economic and social prosperity depend on a well- educated workforce capable of competing in a global economy. ASSESSMENT LAW (d) Six percent (6.0%) of the gross value of oil from $60.01 per (b) This part shall become inoperative after the authority has p g g y 42000. This part shall be known and maybe cited as the"California barrel and above. expended four billion dollars($4,000,000,000)pursuant to subdivision(d) (d) In order to improve student achievement, new investment is o Section 26045 o the needed to reduce class sizes, provide textbooks and other instructional Energy Independence Fund Assessment Law." 42003. Except as otherwise provided in this part, the assessment f f e Public Resources Code and after all indebtedness 42001. For purposes of this part, the following definitions shall shall be upon the entire production in this state,regardless of the place of associated with the Clean Alternative Energy Act, including principal, materials,improve campus safety,and provide facilities for high-quality apply: sale or to whom sold or.by whom used,or the fact that the delivery may be interest, ancillary obligations, and other costs of any bonds issued public charter schools with greater parental and community involvement. made to points outside the state. pursuant to Division 16(commencing with Section 26000)of the Public (e) A parcel assessment for public schools will raise needed funds for (a) `Authority"means the California Energy Alternatives Program p Resources Code,securedby apledge ofthe assessment created by thispart, student achievement,while protecting property owners against runaway Authority, which is established in Division 16(commencing with Section 42004. (a) Producers or purchasers of oil,or both,are authorized has been paid or payment has been provided for, unless a later enacted taxes—especially seniors with fixed incomes. Parcel assessments haveI 26000)of the Public Resources Code. and required to withhold from any payment due interested parties the statute, that becomes operative on or before the date this part becomes been approved by voters in dozens of California communities,and they are proportionate amount of the assessment due. ' inoperative, deletes or extends the date on which it becomes inoperative. consistent with Proposition 13 of 1978. (b) The assessment imposed by this part is the primary liability of Notwithstanding the foregoing,so long as any bonds or other obligations Text of Proposed Laws 1 169 168 1 Text of Proposed Laws*** *** TEXT OF PROPOSED LAWS * * (PROPOSITION 88 CONTINUED) * *TEXT OF PROPOSED LAWS (f) New funding for public education must come with safeguards standards based on disabilities, English proficiency, or socioeconomic distributed from the Classroom Learning and Accountability Fund be 6.2 ofArticle IX of the California Constitution. against waste and mismanagement. The entirety of the Classroom status. included in a school district's expenditures pursuant to Section 33128. SEC. 11. Section 13340 of the Government Code is amended to Learning and Accountability Fund will be subject to oversight and annual (e) The allocation of funds under subdivision (b)shall be adjusted With the exception offunds for academic success facility grants described read: independent audits.Annual audits will ensure that every penny goes into annually on a proportional basis to reflect actual revenues received and in Section 52057.1, the Controller shall distribute the revenues in the 13340. (a) Except as provided in subdivision (b), on and after classrooms and student learning,where it is needed most. interest earned. Classroom Learning and Accountability Fund at least twice during the July 1,2007,no moneys in any fund that,by any statute other than a Budget The Legislature is expressly prohibited from using money fiscal year. (g) g P Y P g Y (f) None of the provisions of this section shall alter or affect any Act,are continuously appropriated without regard to fiscal years,may be from the Fund to supplant other funding or redirect money to other,less right to equal protection provided by this Constitution. SEC.8. Section 41020.4 is added to the Education Code,to read: encumbered unless the Legislature,by statute,specifies that the moneys in critical needs. This act specifies that the Fund.shall not be used to pay' SEC.4. Section 21.5 is added to Article XIII A of the Constitution 41020.4. Each fiscal year, every school district shall provide for the fund are appropriated for encumbrance. p administrative overhead.Misuse of funds will result in criminal penalties, of the State of California,to read: an annual independent audit of the moneys received from the Classroom (b) Subdivision(a)does not apply to any of the following: loss of credentials,and/or fines. O ffify ( ) Learning and Accountability Fund. The audit may be prepared as art o O Y SEC. 21.5. a An assessment o t dollars $50 shall be levied g Y y P p P f 1 The scheduled disbursement of an local sales and use tax (h) Money from the Fund will be used to collect information that on each real property parcel that is not otherwise exem t rom property any annual audit already required,but it shall show how moneys received p p y p p f p p y proceeds to an entity of local government pursuant to Part 1.5(commencing will evaluate the effectiveness of specific educational programs and taxation pursuant to this Article.The assessment shall be collected annually from the Classroom Learning and Accountability Fund were spent by with Section 7200)of Division 2 of the Revenue and Taxation Code. f` investments. Schools,researchers,and other agencies will be better able at the some time and in the same manner as the ad valorem property tax. category and program. The audit shall be reviewed by the applicable (2) The scheduled disbursement of any transactions and use tax to analyze the link between specific investments and the impact on student county superintendent of schools and the Superintendent of Public achievement. (b) A parcel shall be exempt from the assessment described in this Instruction who shall,along with the school district,post the audit reports Proceeds to an entity of local government pursuant to Part 1.6(commencing section if the owner of the parcel(1)resides on the parcel, (2)is eligible with Section 7251)of Division 2 of the Revenue and Taxation Code. (i) Homeowners 65 years of age or older are fully exempted from the on their web sites. i for the homeowner's exemption under subdivision (k) of Section 3 of (3) The scheduled disbursement of any funds by a state or local � provisions of this act. Senior citizens will not be burdened by,the creation Article XIII, and 3 is either a person 65 ears o age or older, or is a SEC.9. Section 52057.1 is added to the Education Code,to read: of the Fund. () P Y f g agency or department that issues bonds and administers related programs severely and permanently disabled person as that term is defined by the 5205Z1. (a) It is the intent of this section that facility grants for for which funds are continuous) appropriated as of June 30,2007. This act pays for itself.The Fund will improve education without school districts be directed towards all eligible schools,including charter Y • (j)� P Y P Revenue and Taxation Code. � � g g � (4) Moneys that are deposited in proprietary or fiduciary funds of the t affecting any state services or programs currently supported by the state schools.Therefore,fundsforacademicsuccessfacilitygrantsappropriated (c) For purposes of this section, parcel"means any unit of real California State University and that are continuously appropriated without General Fund. in the State that receives a separate tax bill or ad'valorem pursuant to paragraph (4)of subdivision(b)of Section 6.2 of Article IX Therefore, the People of the State of California hereby adopt the property P f regard to fiscal years. P Y P property taxes.Any property that is otherwise exempt from,or on which is of the California Constitution shall be apportioned directly to qualifying ` Classroom Learning and Accountability Act. levied,no ad valorem property taxes in any year shall also be exempt from school districts as defined by this section. (5) The scheduled disbursement of any motor vehicle license fee SEC.3. Section 6.2 is added to Article IX of the Constitution of the the parcel tax levied by this section in that year. (b) For purposes of this section,the following definitions shall apply: revenues to an entity of local government pursuant to the Vehicle License f Fee Law(Part 5 (commencing with Section 10701) of Division 2 of the State of California,to read d Each fiscal year, the revenue generated b the assessment (1) A "qualifying school district" is an academically successful O Y g Y Revenue and Taxation Code). y SEC. 6.2. (a) The Classroom Learning and Accountability Fund described in this section shall be calculated and transferred as follows: eligible charter school or a school district with one or more academically is hereby created in the State Treasury to be held in trust for the purposes 1 No more than two tenths o one percent 002 shall be successful schools other than eligible charter schools. Neither a school (6) Moneys that are deposited in the Classroom Learning and I, O f P ( ) district that is formed pursuant to Chapters 3 (commencing with Accountability Fund. set forth below and is continuously appropriated for the support of appropriated to counties for the purpose of defraying the costs incurred in kindergarten through 12th grade educational programs. Section 35500)or Chapter 4(commencing with Section 35700)ofPart 21, SEC. 12. Severability g g g P g implementing this section. b Classroom Learning and Accountability Funds shall not be used and whose former districts received funding from the proceeds of a state The provisions of this measure are severable.If any provision of this O g Y (2) The amount necessary to offset any decrease in state personal general obligation bond for school construction or modernization,nor a measure or its application is held invalid,that invalidity shall not affect to pay for administrative overhead and shall be used for the following and corporate income tax revenues caused by increased deductions taken county office of education is a "qualifying school district." other provisions or applications that can be given effect without the invalid educational purposes only: as a result of the assessments described by this section shall be transferred (1) One hundred seventy-five million dollars ($175,000,000) to to the state General Fund. (2) An"academically successful school"is a school ranked indeciles provision or application. reduce class sizes in kindergarten and grades 1 to 12,inclusive. (3) After the transfer of the amounts calculated in paragraphs 6 to 10,inclusive,on the Academic Performance Index when compared to SEC. 13. Amendment (2) One hundred million dollars ($100,000,000)for textbooks and (1) and(2), the remainder, including any interest earned thereon, shall similar schools as reported for the prior academic year by the State Board This act shall be broadly construed to accomplish its.purposes., other instructional materials approved by the State Board of Education be transferred to the Classroom Learning and Accountability Fund of Education. Any of the statutory provisions of this act may be amended by a bill that as consistent with the state curriculum frameworks and academically established by Section 6.2 ofArticle IX (3) An "eligible charter school"is a charter school operated and complies with the single-subject rule expressed in Section 9 of Article IV rigorous content standards. governed by or as a nonprofit public benefit corporation,formed and of the California Constitution,and thaMis passed by a two-thirds vote of g SEC.5. Section 14 is added to Article XIII B of the Constitution of organized pursuant to the applicable nonprofit public benefit corporation the Legislature and signed by the Governor,so long as the amendments are (3) One hundred million dollars ($100,000,000) to enhance the the State of California,to read: law, where the majority of the'certificated teachers at the school are -1 consistent with and further the intent of this act. safety and security of pupils, teachers, and school staff through school SEC. 14. (a)"Appropriations subject to limitation"of each entity employees o the nonprofit cor oration. community policing,gang-risk intervention, afterschool and intersession of government shall not include appropriations of revenue from the cfP SEC.nit Effective Date student support and development, and school community violence Classroom Learning and Accountability Fund established by Section 6.2 (c) Academic he time ofthe segrantssecond shall principal apart oted to qualifying This initiative shall go into effect on July 1,2007. prevention. of Article IX No adjustment in the appropriations limit of any entity of school districts at the time n the second principal apportionment in the (4) Eighty-five million dollars ($85,000,000)for academic success government shall be required pursuant to Section 3 as a result of revenue form of general purpose funding. Subject to subdivision (d), academic p facility rants to anqualifyingschool district which has not received being deposited in or appropriated rom'the Classroom Learning and success facility grants shall be five hundred dollars ($500)per pupil PROPOSITION 89 f y g y g Pf g and shall be awarded on aper-pupil basis or each pupil enrolled in funding from the proceeds of a state general obligation bond for school. Accountability Fund. f P P This initiative measure is submitted to the people a accordance with an academically successful school, provided, however, that pupils in the provisions of Section 8 of Article II of the California Constitution. construction or modernization. A school district receiving an academic (b) Forpurposes ofthis article, 'proceeds oftaxes"shall not include academically successful eligible charter schools shall not be counted success facility grant shall not be eligible for funding from the proceeds of the revenues derived from the taxes imposed pursuant to Section 21.5 of This initiative measure amends, repeals, and adds sections to the a state general obligation bond or school construction or modernization in calculating the amount of any academic success facility grant that is Elections Code, the Government Code, and the Revenue and Taxation g g f Article XIII A,but shall include those revenues described in paragraph(2) distributed to a school district. unless the law authorizingthe bond and approved b a vote o the people f O f f Code; therefore, existing provisions proposed to be deleted are printed PP Y f P P o subdivision d o Section 21.5 ofArticle XIII A. expressly provides that eligibility. (d) Notwithstanding subdivision (c), if at the time of the second in strrkeeattype and new provisions proposed to be added are printed in SEC.6. Section 8.3 is added to Article XVI of the Constitution of principal apportionment there are insufficient moneys in that portion of the italic type to indicate that they are new. • • (5) Ten million dollars($10,000,000)for an integrated longitudinal the State of California,to read: Classroom Learning and.,4,ccountability Fund described by paragraph(4) • • teacher and pupil achievement data system that provides a better means SEC. 8.3. (a) With the exception of the revenue described in ofsubdivision(6)ofSection 6.2 ofArticle IXof the California Constitution PROPOSED LAW of evaluating the efficiency and effectiveness of educational programs and paragraph(2)of subdivision(d)of Section 21.5 ofArticle XIII A,revenues to provide for the per-pupil allocation specified in subdivision(c),the per- investments. derived from the taxes imposed by Section 21.5 ofArticleXI11A shall not be pupil allocation shall be adjusted on a proportional basis to ensure that (c) The amounts deposited in the Classroom Learning and deemed to be"General Fund revenues which maybe appropriated pursuant all qualifying school districts receive an academic success facility grant in CALIFORNIA NURSES CLEAN MONEY AND FAIR Accountability Fund shall be used exclusively for the purposes set forth to Article XIII B"as that phrase is used in paragraph (1)of subdivision an equal amount per pupil. ELECTIONS ACT OF 2006 • in this section.All moneys in the Classroom Learning and Accountability (b)of Section 8 nor shall they be considered in the determination of`per (e) Any moneys remaining in that portion of the Classroom Learning Fund shall be used to supplement and not supplant federal,state,or local capita General Fund revenues"as that term is used in paragraph (3)of and Accountability Fund described by paragraph(4)of subdivision(b)of SECTION 1. Chapter 12(commencing with Section 91015)is added funds used for educational programs. The Legislature shall set penalties, subdivision(b)and in subdivision(e)of Section 8. Section 6.2 ofArticlelX of the California Constitution after apportionment to Title 9 of the Government Code,to read: including loss of credentials and/or fines,for school districts, county (b)'Funds appropriated pursuant to Section 6.2 ofArticleffshall not of funds for academic success facility grants as required by this section offices of education,public charter schools, and any administrator that be deemed to be part total allocations to school districts andcommunit - misuses funds appropriated and allocated pursuant to this section. P f Y shall remain in the Classroom Learning and Accountability Fund and shall CHAPTER I2. CALIFORNIA,CLEAN MONEY AND f'A1R � college districts from General Fund proceeds of taxes appropriated' be available for distribution to qualifying school districts in the following ELECT/ONs ACT OF 2006 (d) Funds appropriated pursuant to paragraphs(1)to(3),inclusive, pursuant to Article XIII B"as that phrase is used in paragraphs(2)and year. of subdivision(b)shall be apportioned directly to school districts,county 3 o subdivision b o Section 8. O f O f SEC. 10. Section 60901 is added to the Education Code,to read: offices of education,and public charter schools on a per pupil basis. Using SEC.7. Section 14003 is added to the Education Code,to read: Article 1. General - a variables and data that are objective, measurable, and auditable, the 60901. Each school district shall participate in the collection and 14003. No moneys distributed from the Classroom Learning and reporting of data necessary for the'creation and maintenance of the state's Legislature shall weight the per-pupil allocation to accountfor differential 91015. This chapter shall be known and may be cited as the Accountability Fund shall be included in calculating and apportioning integrated longitudinal teacher and pupil data system as defined by the pupil-level costs associated with achieving.state and federal achievement California Clean Money and Fair Elections Act of 2006. funds as provided in Section 2558, 42238, or 56836.08.Nor shall moneys Legislature and described in paragraph (5)of subdivision (b)of Section ,I 170 1 Text of Proposed Laws*** ***Text of Proposed Laws 1 171 I 1 TEXT OF PROPOSED LAWS (PROPOSITION 89 CONTINUED) ' * TEXT OF PROPOSED LAWS 91017. The people find and declare all of the following: may secure that political quid pro quo by making unlimited contributions that corporations will attempt to circumvent any new limits on corporate people in the electoral process and in the integrity of government, by (a) The constitutional system of popular governance of the State of to ballot measure and general purpose committees controlled,formally i express advocacy in candidate and ballot measure elections through the requiring that corporations desiring to engage in election-related spending California is in serious jeopardy. The health of the state's democracy has or informally, by candidates and state elected officials. More than use of campaign advertising that avoids the "magic words"of express in California do so through separate segregated funds that protect their been undermined by the state's campaign finance rules.Current regulation $84 million has poured into these committees since 1990,much of it from advocacy. A bright-line "electioneering communications"provision is First Amendment rights. of campaign finance practices in California is insufficient. Nearly large corporate contributors,from those with important business with the therefore necessary to prevent corporations from exploiting a loophole in (n) To limit the opportunity for circumvention of important 60 percent of Californians have expressed their concern that California's state,and from wealthy contributors whose financial interests are affected the law that would allow unlimited corporate spending on election-related campaign finance rules enacted to avoid corruption, the appearance i cam ai n nance system needs major changes. by state decisions. campaign advertising. P g .fi Y J g of corruption, distortion of the political process, and a decline in voter (b) The increasing costs of Political campaigns have forced (p) Powerful corporate and commercial interests have transformed (x) California's initiative process was established,to enable confidence by adopting reasonable restrictions governing electioneering candidates to raise a larger percentage of their campaign funds from initiative and referendum campaigns into a new arena for gaining individual citizens to join together to act as lawmakers when elected communications, aggregate contribution limits, and inter-candidate and special interests that have a specific financial or commercial stake in the commercial advantage and exploiting business opportunities at the officials are too beholden to corporate interests to take action on matters inter-committee transfers ofcampaign funds, outcome of the elections. expense of the public interest and welfare.Hundreds of millions of dollars of public safety and necessity. Thus the initiative process was intended to are spent by corporate business interests in the initiative.and referendum provide citizens with a collective opportunity to make their views known (c) Unlimited corporate funded election-related spending and P PP Y Article 2. Applicability to the Political Reform Act of 1974 I unlimited contributions to ballot measure and general purpose committees process"to advance private, self-interested business plans, deregulate and voices heard,so as to engage in self-government, when the views of controlled by California elected officials and candidates are leading to legal Protections preserving the public health and welfare, and disable corporate interests predominate in the Legislature. Corporations are not 91023. Unless specifically superseded by provisions of this chapter, corruption,or the appearance of corruption,of the election process,have governmental institutions and programs essential to popular governance humans;they are creatures of the state that are licensed upon agreement the definitions and provisions ofChapters 1 to 11,inclusive,of this title(the in the interests of the people. Established by the voters in 1911 as a means to comply with the norms o conduct imposed produced corrosive and distorting effects on the electoral process, and PY f posed upon them,in exchange for Political Reform Act),shall govern the interpretation of this chapter. have created a loss of public confidence in the fairness of the electoral of curtailing the political influence of corporate interests, the initiative which they are accorded the right to do business in the state and numerous process. process now primarily serves corporate and commercial interests. I other privileges. (q) Candidate elections and ballot measure elections in California Through the use o mone corporations have come to exercise Article 3. Definitions (d) Corruption and the appearance ofcorruption is a majorproblem (Y) g f Y• P are intertwined, not separate events. California state candidates, enormous influence, and often outright control, over the actions of the 91025. For in California politics. purposes of the contribution limits of this chapter: officeholders, and political parties often endorse, oppose, and actively executive and legislative branches in California. Money from various Large campaign contributors and spenders are able to buy access campaign or and against ballot measures, and use those measures as (a) The contributions of an entity whose contributions are directed to California's elected officials, thereby unduly influencing the legislative part an overall electoral strategy. Thus, the potential or candidate corporate interests has effectively paralyzed the Legislaturefrom enacting and controlled by any individual shall be aggregated with contributions PQ f gY• P f laws that would protect the public. Similarly, through their use of their and executive agenda and policy choices. At the very-least, there is a corruption and the appearance o corruption exists in all ballot measure made by that individual and any other entity whose contributions are troublesome appearance o corruption when, or example, the Governor P PP f P financial.resources, corporations now overwhelmingly dominate the directed and controlled b the cam individual. PP f P f P campaigns in California. y e ua s sponsors a $500,000 per late dinner with bond traders to raise funds initiative process, either to prevent citizens from effectively exercising P P P f r Campaign-related s endin b business corporations is their right to promote ballot initiatives, or to enact legislation that the (b) If two or more entities make contributions that are directed and supporting a bond-related ballot measure. Californians ear that in some Ospending Y P g P g PP gf especially corrupting because of its corrosive and distorting effects. The Legislature, paralyzed by competing special-interests, will not enact. controlled by a majority of the same persons, the contributions of those instances large contributions are given to secure a political quid pro quo immense aggregations o wealth that are accumulated with the het o the Indeed,business corporations now routinely employ counter initiatives" entities shall be aggregated. from current and potential officeholders. f P f P y p y corporate form have little or no correlation to the public's support for the designed not to pass the measures themselves, but to discourage voters (c) Contributions made by entities that are majority-owned by any (e) The current campaign finance system burdens candidates with corporation's political ideas;and corporations should not be allowed to from supporting or even voting upon citizen-sponsored ballot measures person shall be aggregated with the contributions of the majority owner the incessant rigors of fundraising and thus decreases the time available exert an undue influence on the outcome of candidate and ballot measure that the corporations oppose.Finally,elected officials and candidates for and all other entities majority-owned by that person,unless those entities to carry out their public responsibilities. elections.Nearly 80 percent of Californians have complained that business public office have begun to utilize the initiative process to both solicitfunds act independently in their decisions to make contributions. (1) The current campaign finance system diminishes the free speech corporations have too much influence on candidate elections and ballot from corporations whose financial interests would be served by proposed 91027. "Coordination"means a paymentmadefora communication rights of a majority of voters and candidates whose voices are drowned out initiatives. initiative legislation, and to escape the more stringent rules governing or anything of value that is for the purpose of influencing the outcome of by corporations with unlimited funds to expend for monopolizing the arena (s) California's existing campaign finance rules that permit contributions to candidates for public office. an election for elective state office and that is made by any one or more of of paid political communications to further their own private commercial unchecked corporate spending are also undermining the public's 91019. The people enact this chapter to accomplish the following the following methods: interests. confidence in the election process.A majority o Californians believe that purposes:fi p � y fp p (a) By a person in cooperation,consultation,or concert with,at the (g) The current campaign finance system fuels the public perception campaign contributions are having a negative effect on the public policy (a) To reduce the influence of large-contributions on the decisions request or suggestion of,or pursuant to a particular understanding with, of corruption at worst and conflict of interest at best and undermines public made by state officials in Sacramento.Nearly 8 in 10 California voters say made by state government. a candidate, a candidate's controlled committee, or an agent acting on confidence in the democratic process and democratic institutions. that their state government is run by a few big interests,and 92 percent of behalf of a candidate or a controlled committee. (h) The ever-increasing costs of political campaigns in competitive California voters believe the initiative process is controlled"some"or "a (b) To remove wealth as a major factor affecting whether an individual chooses to become a candidate. (b) Based on specific information about the candidate's plans, races force most candidates to raise larger and larger percentages of their lot"by special interests. or needs provided to the person making the payment b the (c) To provide a greater diversity of candidates to participate in the projects, P P g P Y Y campaign funds from interest groups that have a specific financial stake in (t) Corporate spending in the election process exerts an undue electoral process. candidate or the candidate's agent who provides the information with a the outcome of the elections and in matters before our state government. influence on the outcome of the vote, and—in the end—destroys the view toward having the payment made. (i) Existing term limits place a greater demand on fundraising for confidence of the people in the democratic process and in the integrity (d)'To reverse the escalating cost of elections that have increased far the next election even for elected officials in safe seats. of government. Corporate advocacy threatens imminently to undermine beyond the, of inflation. (c) By a person if, in the same primary or general election in democratic processes, thereby denigrating rather than serbin First (e) To permit candidates to pursue policy issues instead o beingwhich the payment is made, the person making the payment is serving as � (j) The rapidly increasing amounts of independent expenditures P Y g g g P P y f a member, employee,fundraiser, or agent of the candidate's controlled .' point to a growing trend of special interest groups to fund independent Amendment interests.However, contributions or expenditures by certain preoccupied with fundraising and allow officeholders to spend more time committee in an executive or policymaking position. nonprofit or organizations do not resent these same dangers. " carrying out their public duties.' expenditures in an effort to skirt the contribution laws. g P g 91028. "District"means: u O articular concern are social science studies proving that 0) To diminish the danger of actual corruption and the public (k) The current campaign finance system undermines the First O .f P P g (a) In the case of an election for the Legislature or the Board of Amendment right o voters and candidates to be heard in the political large spending by corporations in ballot measure campaigns is very Perception of corruption and strengthen public confidence in the g f P Equalization, the numeric district in which the candidate is seeking process, undermines the First Amendment right of voters to hear all successful in blocking ballot measures that are otherwise popularly governmental and election processes, office. candidates'speech, and undermines the core First Amendment value of supported by the voters. e (g) To ensure that independent expenditures are not used io evade contribution limits. (b) In the case of an election for statewide elective office, the State open and robust debate in the political process. (v) Limits on corporate election-related spending and on �"' of California. (1) The number of candidates and issues attracting campaign contributions to candidate-controlled ballot measure committees do ' (h) To foster more equal and meaningful participation in the contributions varies widely among candidate races. The costs in some not violate the First Amendment. The Supreme Court has recognized political process. 91029. `Entity"means any person other than an individual. election races are minimal while others draw expenditures in excess that restrictions on direct corporate contributions and'expenditures are I(i) To provide candidates who participate in the Clean Money 91031. "Excess expenditure amount"means the amount of funds' • of one million dollars ($1,000,000). This act addresses the range of constitutional when necessary to preserve voter confidence in the election program with sufficient resources with which to communicate with voters. spent or obligated to be spent by a nonparticipating candidate in excess of competitive election races b providing smaller amounts o ublic unds' , process,to prevent candidate corruption or the appearance ofcorruption, ' the Clean Money amount available to a participating candidate running • P YP g fP .f (j) To increase the accountability of each elected official to the in noncompetitive races and much larger amounts in competitive contests. or to prevent the distorting effect of corporate campaign contributions for the same office. If a participating candidate has made the choice constituents who elect him or her,as opposed to the contributors who fund As a result, the act saves'the taxpayers of California from unnecessarily and expenditures. The Supreme Court has also recently recognized that his or her campaigns. specified in subdivision (c) of Section 91097 in an election where*there expending large amounts ofpublicfunds. corporate contributions are furthest from the core ofpolitical expression, is more than one participating candidate, then the Clean Money amount since corporations'First Amendment speech and association interests are (k),To provide voters with timely information regarding the sources. available to the participating candidate shall be considered to be the (m) In states where the clean money and clean election laws have derived lar el rom those o their members and o the public in receiving of campaign contributions,expenditures,and political advertising. actual amount aid b the Clean Money Fund to the candidate or that p been enacted and used, election'results show that more individuals, g Yf f f P g P Y Y .f � especially women and minorities, run as candidates; voter turnout •information. Limits on direct corporate contributions leave individual (l) To prevent.corruption, the appearance of corruption, and a primary or general election period; including any increase or decrease � p Y decline in voter confidence in'the integrity of the electoral and political effected by the choice. increases and overall campaign costs decrease. officers, employees, and members of corporations free to make their r own political contributions, and therefore deprive the public of little or Process by imposing reasonable limits on contributions made to ballot 91033. `Exploratoryperiod"means theperiod beginning 18months (n) The current campaign finance system creates a danger of actual measure committees controlled formally or informally by candidates. .no material information. The same rationale applies to restrictions on before the primary election and ending on the last day of the qualifying corruption by encouraging elected officials to take funds from private corporate political expenditures. m To prevent the distorting effect o campaign contributions and interests that are directlyaffected b overnmental actions. P P P - O P g ff fperiod. The exploratory period begins before, but extends to the end of, ff y g (w) Experience in the federal election process regarding the expenditures by business corporations, which threaten imminently to the,qualifying period. (a) Under the state's current campaign finance rules, contributors emergence of"sham issue.advocacy"leads California voters to anticipate undermine the democratic process, and to restore the confidence of the 91035. "General election campaign period" means the period 1721 Text of Proposed Laws*** ***Text of Proposed Laws 1 173 ' I TEXT OF. PROPOSED LAWS * (PROPOSITION 89 CONTINUED) * TEXT OF PROPOSED LAWS , 3 beginning the day after the primary election and ending on the day of the candidate is runningfor office. 1 ; (F) All qualifying contributions'signed receipts shall be sent to the election campaign periods,a participating candidate who has voluntarily general election. 91065. "Qualifying period" means the period during which Commission and shall be accompanied by a check from the candidate's agreed to participate in,and has become eligible for,Clean Money benefits campaign account or the total amount oqualifyingcontribution funds shall not solicit or receive political contributions or an other candidate 91037. "Independent candidate" means a candidate for elective candidates for elective state office are permitted to collect qualifyingf f f P f Y state office who does not represent a political party that has been granted contributions in order to qualify for Clean Money funding.It begins 270 received for deposit in the Clean Money Fund. This submission shall or for any political party committee or other committee as defined under ballot status for the general election and who has qualified to be on the days before the primary election and ends 90 days before the day of the be-accompanied by a signed statement under penalty of perjury from Section 82013: general election ballot. primary election.for.qualified party candidates and begins any time after the candidate indicating that all of the information on the qualifying (c) No person shall make a contribution in the name of another 91041. "Majority-owned" means an ownership of 50 percent or January I of the election year and lasts 180 days but in no event ending contribution receipts is complete and accurate to the best of the candidate's person.A participating candidate who knows or reasonably should have later than 90 days before the general election for performance-qualified knowledge and that the amount of the enclosed check is equal to the sum known that he or she received a qualifying contribution or a seed money more. candidates who are running as independent candidates. of all the five-dollar ($5) qualifying contributions the candidate has contribution that is not from the person listed on the receipt required by 91043. "Nonparticipating candidate" means a candidate for received. subparagraph C o ara rah 2 o subdivision a o Section 91071 elective state office who is on the ballot but has chosen not to apply for 91067. "Seed money contribution"means a contribution ofno moreO f paragraph P O f O f than one hundred dollars $100 made b ale al resident o Cali ornia (G) The candidate discloses at the end of the qualifying period the shall be liable to pay the Commission the entire amount of the inaccurately Clean Money campaign funding and a candidate who is on the ballot and ( ) y g f f total amounts, i any, sent to hire aid circulators to collectqualifyingidenti ed contribution or deposit in the Clean Money Fund, in addition . has applied but has not satisfied the requirements for receiving Clean during the exploratory period. f y P P p f P Y 91069. "Small contributor committee"means an committee that contributions. The candidate shall disclose the information in a report to any penalties. Moneyfunding. y filed with the Commission pursuant to regulations the Commission shall (d) During the primary and general election campaign periods, 91045. "Office-qualifiedparty"means aparty whose gubernatorial meets all of the followin g criteria: promulgate. nominee has received 10 percent or more of the votes at the last election (a) The committee has been in existence for at least six months. a participating candidate shall pay for all of the candidate's campaign (b) A party candidate for elective state office qualifies as a expenditures, except petty cash expenditures, by means of a "Clean or whose candidate for the same elective state office in the same district, (b) The committee has received contributions from 100 or more participating candidate for the general election campaign period if both of Money Debit Card" issued by the Commission, as authorized tinder whether statewide or legislative, as the current candidate seeking Clean persons. the following requirements are met: Section 91141. Money funding received 10 percent or more.of the votes at the last (c) No person has contributed to the committee more than two election. hundred dollars($200)per calendar year. (1) The candidate met all of the applicable requirements of a (e) Candidates for elective state office shall furnish complete candidate in the rimar election eriod and led a declaration campaign records, including all records o seed money contributions 91046. R,.,"Office-qualified candidate" is a candidate seeking participating P y P fig f y (d) The committee makes contributions to five or more candidates with the Commission that the candidate has fuflied and will fufll all of the and qualifying contributions, to the Commission at regular filing nomination for an elective state office from an office-qualified party. for elective state office. requirements of a participating candidate as stated in this act. times. Candidates shall cooperate with any audit or examination by the 91047. "One party dominant legislative district" is a district in (e) The committee is not a candidate-controlled committee pursuant O p p g f ffi q fi party p 2 As artici atin candidate from an o ce- ua'li ed art Commission,the Franchise Tax Board,or any enforcement agency. which the number of registered voters for the party with the highest number to Section 82016. during the primary election campaign period,the candidate had the highest 91081. (a) During an election for an elective state office, each of registered voters exceeds the number of registered voters for each of the number of votes of the candidates contesting the primary election from the participating candidate shall conduct all campaign financial,activities i other parties by an amount no less than 20 percent of the total number of Article 4., Clean Money candidate's respective party and,therefore,won the party's nomination. through a single'campaign account. Accounts established pursuant to registered voters in the district. 91073. A qualified candidate for elective state office shall collect Section 911j5 are not subject to this requirement. 91047.5. "Paid Circulator,"for the purpose ofcollecting qualifying 91071. (a) An office-qualified candidate for elective state office at least half the number of signatures as required for an office-qualified (b) Notwithstanding Section 8520I, a participating candidate may contributions and as used in this chapter, means any person who is as a participating candidate or the primary election campaign f ffj y g f pp campaign qualifies p P g f P Ycandidate or the same office and may show a greater base o support maintain a campaign account other than the cam ai n account described compensated with money or anything of value for collecting qualifying period i the following requirements are met: b collecting double the amount o signatures as re wired or an office- in subdivision a i the other campaign account is or the purpose o contributions. This definition shall not include a full-time campaign staff P f f g q y g f g q f ffi O ff P P f member who spends no more than 20 percent of his or her time gathering (1) The candidate files a declaration with the Commission that the qualified candidate to become a performance-qualified candidate. The retiring a campaign debt that was incurred during a previous election, qualifying contributions. "Compensation,"for purposes of this chapter, candidate has complied and will comply with all of the requirements of this candidate shall also file a declaration with the Commission that the campaign in which the candidate was not a participating candidate. means any economic consideration,including payments on the basis of the act,including the requirement that during the exploratory period and the candidate has complied and will comply with all of the requirements of (c) Contributions for the purposes of retiring a previous campaign qualifying period the candidate not accept or spend private contributions this act. For a candidate who does not run in a primary, the qualifying debt that are deposited in the "other campaign account"described in number of qualifying contributions gathered. "Compensation"does not from an source other than seed money contributions,Clean Mone unds, period begins an time after January 1 o the election year and lasts 180 P include reimbursement of reasonable travel expenses such as expenses for f y y yf P g y f y f y subdivision(b)shall not be considered"contributions"to the candidate's transportation plus e reasonable sum for food and lodging. and political party funds as specified in Section 91123. days, except that it shall end no later than 90 days before the general current campaign.Contributions for the purpose oftetiring debt shall only (2) The candidate meets the following qualifying contribution election.A candidate who is not an office-qualified candidate shall notify. be raised during the six-month period following the date of the election, 91049. `Participating candidate"means a candidate for elective the Commission within 24 hours o the day when the candidate has begun state office whoqualifies or Clean Money campaign undin These requirements before the close of the qualifying period: f Y g unless,forgood cause shown,the candidate>eceives a six-month extension f� f Yfunding. collecting qualifying contributions. from the Commission. `. candidates are eligible to receive Clean Money funding during primary (A) Theoffice-qualifiedparty candidate collects at least thefollowing number of qualifying contributions: 91075. During the first election that occurs after the effective (d) Participating candidates shall file reports of financial activity and general election campaign periods. date o this act,a candidate or elective state office may be certified as a 91051. "Party candidate"means acandidatefor elective state office (i) Seven hundred fifty qualifying contributions for a candidate candidate,notwithstanding theacce acceptance contbutions related r thecurrentelection cycleseparatelyfromreportsoffinancial who re resents a olitical art that has been ranted ballot status and running for the office of Member of the Assembly. participating g P f activity related to previous election cycles. p p party g or making of expenditures from private funds before the date of enactment 91083. a Participating candidates shall use their Clean Money holds a primary election to choose its'nominee for the general election. (ii) One thousand five hundred qualifying contributions for a that would,absent this section,disqualify the candidate as a artici atin O P g 91053. `Per ormance- uali ed candidate" means a candidate candidate running for the office of Member of the State Senate. q fY P P g funds only for direct campaign purposes. f q fi candidate, provided that any private funds accepted but not expended for elective state office who has either won the primary nomination-of . (iii) Two thousand qualifying contributions for a candidate running before the effective date of this act meet any of the following criteria: (b) A participating candidate shall not use Clean Money funds for an office-qualified party or shown a broad base of support by gathering for the office of member of the State Board of Equalization. (a) Are returned to the contributor. any of the following: twice the number of qualifying contributions as is required for an office- (iv) Seven thousand five hundred qualifying contributions for a (b) Are held in a special campaign account and used onlyfor retiring e Costs r t legal defense in any campaign law enforcement qualified candidate. Independent candidates may qualify for funding as candidate running for any statewide office other than Governor. a debt from a previous campaign. proceedding under this act. performance-qualified candidates. v Twent ve thousandqualifyingcontributions or a candidate (2f Indirect campaign purposes, including, but not limited to, the O Yfi f (c) Are submitted to the Commissio_n for deposit in the Clean Money� following: ' 91054. "Person" means an individual, proprietorship, firm, running for the office of Governor. Fund. partnership, joint venture, syndicate, business trust, company, (B) No individual legal resident of California shall provide more (A) The candidate's personal support or compensation to the corporation, limited liability company, association, committee, or any than onequalifying'contribution or each office in which ail election is 9s du (a) A participating candidate who accepts any Clean Money candidate or the candidate's family. .f ffi benefits during the primary election campaign period shall comply with all other organization or group of persons acting in concert. held covering the district in which he or she resides. of the requirements of this chapter applicable to participating candidates (B) The candidate's personal appearance. 91055. "Petty cash"means cash amounts of one hundred'dollars C Eachqualifyingcontribution shall be acknowledged ed b a (C) Capital assets having a value in excess of five hundred dollars ($100)or less per day that are not drawn on the Clean Money Debit Card ( ) g y through the general election campaign period whether the candidate receipt to the contributor,with a copy submitted to the Commission by the continues to accept benefits or not. ($500) and useful life extending beyond the end of the current election and used to pay expenses of no more than twenty-five dollars($25)each. candidate. The receipt shall include the contributor's signature,printed (b) An elected state officer who accepted Clean Money benefits in the Period determined in accordance with generally accepted accounting 91057. "Political party committee" means the state central name,and home address,the date,and Me name of the candidate on whose election for the currently held office shall not accept private contributions Principles.Notwithstanding this limitation,a participating candidate may. • committee or count central committee o an organization that meets the y f g behalf the contribution is made.In addition, the receipt shall indicate by from any source and shall not solicit or receive political contributions Purchase computer-related assets provided that each such asset has a requirements for recognition as a political party pursuant to Section 5100 the contributor's signature that the contributor understands that he or she for any candidate or any political party committee or other political value not in excess of$1,000. of the Elections Code. may contribute a qualifying contribution to only one candidate for each committee,until the first day of the Qualifying Period for the next election (D) A contribution or loan to the campaign committee of another 91059. "Primary election campaign period" means the period office for which the contributor is eligible to vote, that the purpose of the for the office currently held. Contributions pursuant to Section 91115 are candidate or to a political party committee or other political committee. beginning 120 days before the primary election and ending on the day the qualifying contribution is to help the candidate qualify for Clean Money not subject to this requirement. (E) An independent expenditure. primary election results are certified for all candidates for the relevant campaign,funding,and that the contribution is made without coercion or elective state office. reimbursement. 91079. (a) During the primary and general election campaign (F) A gift in excess of twenty-five dollars($25)per person. elective sta. "Qualified candidate" means a candidate seeking (D) A contribution submitted as a qualifying contribution that does periods, a participating candidate who has voluntarily agreed to (G) Any payment or transfer for which compensating value is not participate in,and has become eligible for,Clean Money benefits,shall not received. nomination for an elective state office from a party that is"not an office- not include a signed and fully completed receipt shall not be counted as a accept private contributions from any source other than the candidate's qualified party. qualifying contribution. political party as specified in Section 91123. Contributions pursuant to. (3) Compensation to any individual who receives a salary from 91063. "Qualifying contribution" means a contribution of (E) All five-dollar($5)qualifying contributions,whether in the form Section 91115 are not subject to this requirement. the State of California. Administrative and support personnel shall be five dollars $5 that is received during the designatedqualifyingeriod o cash, check, or money order made out to the candidate's campaign exempt. j fi ( ) g g P f Y (b) During the qualifying period and the primary and general by a candidate for elective state office seeking to become eligible for Clean account,shall be deposited by the candidate in the candidate's campaign 91085. (a) Personal funds contributed by a candidate for elective Money campaign funding from a legal resident of the district in which the account. 1741 Text of Proposed Laws*** ***Text of Proposed Laws 1 175 TEXT OF PROPOSED LAWS * * * (PROPOSITION 89 CONTINUED) * * TEXT OF PROPOSED LAWS state office seeking to become eligible as a participating candidate as seed 91095. (a) Candidates for elective state office who qualify for , The choice may also affect the amount at which an opposing candidate campaign. money to his or her campaign, or by adult members of the candidate's Clean Money fundingfor primary and general elections shall: may be considered to have exceeded the amount of Clean Money funding 91103. A small contr•iburor committee shall not make to any (I) Receive Clean Money funding from the Commission for each available to the participating candidate. if a competing participating nonparticipating candidate, and a nonparticipating candidate shall not family to the candidate, shall not exceed the maximum of one hundred dollars($100)per contributor. election, the amount of which is specified in Section 91099. This funding candidate transfers funds pursuant to this subdivision from the general accept from a small contributor committee,any contribution totaling more (b) Personal funds shall not be used to meet the qualifying may be used tofinance any and all campaign expenses during the particular to the primary election by the close of the qualifying period, any other than two thousand five hundred dollars($2,500)per election. contribution requirement except for one five-dollar($5)contribution from campaign period for which it was allocated consistent with Section 91081. participating candidates in the same election may transfer the same amount offunds front the general to the primary election by notifying the 91105. (a) A person shall not make to any independent expenditure the candidate and one five-dollar($5)contribution from the candidate's (2) Receive, if an office-qualified candidate or a performance- committee,and a committee shall not accept from a person,contributions Commission in writing within five days of the close of the qualifyingperiod. spouse. qualified candidate showing a broad base of support, additional Clean totaling more than one thousand dollars ($I,000)per calendar year for The Commission shall promulgate regulations that require notification of 91087. (a) The only private contributions a candidate for elective Money funding to match any excess expenditure amount spent by a such transfers to the Commission and to affected candidates. the purpose of making expenditures in support of the election or defeat of disclosed pursuant to Section 91107, a candidate,or candidates for elective state office. state office seeking to become eligible for Clean Money funding shall nonparticipating candidate, as p accept, other than qualifying contributions, contributions pursuant to provided that the dollar value of the excess expenditure amount,combined 91099.'(a) For candidates in a primary election for elective state office or for performance-qualified candidates for elective state office in a (bo A person may co make to any committee,other than apolitical Section 91115, and]imited contributions from the candidate's political with the amount spent by any independent expenditure exceeds,the initial party committee, and a committee other than a political party committee party as specified in Section• 91123, are seed money contributions amount of Clean Money funding.received by the participating candidate. special or special runoff election: may not accept,any contribution totaling more than one thousand dollars contributed by individual legal residents of the State of California residing (3) Receive, if an office-qualified candidate or a performance= (1) The amount of Clean Money ficnding far an office-qualified party ($1,060)per calendar year for the purpose of making contributions to any in the district in which the candidate is runningfor election prior to the end candidate in a primary,special,or special rzmoff election:is: committees,including ballot measure committees,controlled by candidates 1 lean gf P qualified candidate showing a broad base of support, additional C of the qualifying period. Money funding to match any excess independent expenditure made in (A) Two hundred fifty thousand dollars($250,000)for a candidate for elective state office. (b) A seed money contribution shall not exceed one hundred dollars opposition to their candidacies orin supportoftheiropponents'candidacies, running for the office ofMember of the Assembly. (c) A person may not make to any political party committee, and ($100)per donor,and the aggregate amount of seed money contributions as disclosed pursuant to Section 91109,provided that the dollar value of I (B) Five hundred thousand dollars ($500,000) for a candidate a political party committee may not accept, any contribution totaling r accepted by a candidate for elective state office seeking to become eligible - the expenditure,combined with the amount raised or received thus far by runningfor the office ofMember of the State Senate. more than seven thousand five-hundred dollars ($7,500)per calendar for Clean Money finding shall not exceed: any opposing candidate who benefits from the independent expenditure (C) Two hundred fifty thousand dollars($250,000)for•a candidate year•.for the purpose of making contributions•for the support or defeat of (1) Ten thousand dollars ($10,000)for a candidate runningfor the exceeds, the initial amount of Clean Money funding received by the runningfor the office of member of the State Board of Equalization. candidates for elective state or for the purpose of making contributions Office of Member of the Assembly. participating candidate. (D) Two million dollars($2,000,000).for acandidate runningfor a to any committees, including ballot measure committees, controlled by T (b) The maximum aggregate amount of funding a participating statewide office other than Governor. candidates for elective state office. Notwithstanding Section 85312,.this (2) Twenty thousand dollars($2Q000)for a candidate runningfor the office Member of the State Senate. 6ffice-qualified candidate or a performance-qualified candidate showing a llmitapplies to contributions made to apolitical party used for the purpose t (E) Ten million dollars ($10,000,000)f running or a candidate rning for g j� (3) Thirty thousand dollars ($30,000)for a candidate runningfor broad base ofsupport shall receive to match independent expenditures and Governor o ofmaking expenditures at the behest ofa candidatefon elective state office � the office of member of the State Board of Equalization. excess expenditures of nonparticipating candidates shall be no more than for communications to party members related to the candidate's candidacy (2) The amount of Clean Money nding for a performance-qualified for elective state office. fu five times the amount of Clean Money funding allocated to a participating candidate in a primary or special election is 20 percent of the amount an (4) Seventy-five thousand dollars($75,000)for a candidate running candidate pursuant to Section 91099 fot a particular primary or general (d) Nothing in this chapter limits a nonparticipating candidate i for a statewide office other than Governor. election campaign period, except that for the office of Governor, the office-qualified party candidate runningfor the saute office could receive. for elective state office front transferring contributions received by the (5), Two hundred fifty thousand dollars ($250,000)for a candidate amount shall be no more than four times the amount of Clean Money The amount of Clean Moneyfundingforaperformance-qualifiedcandidate candidate in excess of any amount necessary to defray the candidate's is in a special runoff election is 50 percent of the amount an office-qualified running-for the office of Governor. funding allocated to a participating candidate pursuant to Section 91099. expenses for election related activities or holding office to a political party Icandidate runningfor the same office would receive. (c) Receipts for seed money contributions under twenty-five dollars 91095.5. (a) Independent expenditures against a participating coinnrittee,provided those transferred contributions cure used for purposes ($25 shall include the contributor's signature, printed name, street candidate shall be treated as expenditures o each opposing candidate or (3) The Clean Money funding antount for a participating candidate consistent with paragraph(4)ofsubdivision(b)of Section 89519. ) g p p f pp g f in a primary election where no other candidates are running in the same address,and ZIP Code.Receipts for seed money contributions of twenty- the purposes of Section 91095. (e) An elected state officer,nonparticipating candidate,legal defense five dollars $25 or more shall also include the contributor's occupation party primary for that seat is 10 percent of the amount provided in a ( ) (b) Independent expenditures in favor of one ors more non- account,political party committee,or Independent expenditure committee contested primary election. and name of employer. Contributions shall not be retained if the required participating opponents of a participating candidate shall be treated as shall not solicit or accept a contribution from a registered state lobbyist disclosure information is not received. (b) For candidates for elective state office in a general election: or lobb in rm, o rom a state contractor, c the lobbyist or employee .r expenditures of those non-participating candidates for the purpose of y• gfi or from f y• • (d) Seed money shall be spent only during the exploratory and Section 91095. (1) The amount of Clean Money funding for an office-qualified or principal of the lobbying fi'rnt is registered to lobby, or if the state qualifying periods. Seed money shall not be spent during the primary (c) independent expenditures in favor of a participating candidate candidate in a contested general election is: contractor has present or potential fitture business with,the governmental or general election campaign periods.Any unspent seed money shall be shall be treated,for every opposing participating candidate, as though (A) Four hundred thousand dollars ($400,000) for a candidate agency for which the candidate is seeking election or the governmental turned over to the Commission.for deposit in the Clean Money Fund. the independent expenditures were an expenditure of a nonparticipating runningfor the office ofMember of the Assembly. 9 agency of the elected state officer. (e) Within 72 hours after the •close of the qualifying period, 'opponent,for purpose of Section 91095. (B) Eight hundred thousand dollars ($800,000)for a candidate (f) No committee controlled by a candidate or officeholder, shall candidates seeking to,become eligible for Clean Money funding shall do (d) The Commission shall promulgate regulations relating to runningfor the office ofMember of the State Senate. make any contribution to any other candidate runningfor state office or both of the following: independent expenditures that reference or depict more than one candidate (C) Four hundred thousand dollars ($400,000)for a candidate his or her controlled committee. (7) Fully disclose all seed money contributions and expenditures to for the purposes of Section 91095. runningfor the office of member of the State Board of Equalization. (g) No person shall contribute in the aggregate more than seven the Commission. 91097 (a) A qualified or office-qualified candidatefor elective state (D) Two million dollars($2,000,000)for a candidate runningfor a thousand five hundred dollars($7,500)to all candidates for elective slate (2) Turn over to the Commission for deposit in the Clean Money office shall receive the candidate's Clean Money funding for the primary statewide office other than Governor. of and their controlled committees,political party committees, and Fund any seed money the candidate has raised during the exploratory election campaign period on the date on which the Commission certifies E F{•teen million dollars 515,000,000 or a candidate running any other committees, in any calendar year,for the purpose of making period that exceeds the aggregate seed money limit. the candidate as a participating candidate. This certification shall take (e / ( )'f contributions to candidates for elective state office or independent for Governor. 91091. Participating candidates in races for elective state office place no later than five days after the candidate has submitted the required expenditures to support or oppose con tribute for elective state office; with more than one candidate shall agree to participate in at least one number of qualifying contribution receipts, a check for the total amount (2) The amount ofClean Money tion is 50 e pen t of amount an pro vianded,however,that a person may contribute tip r e additional tonepseven g p p candidate in a contested general election is SO percent of the amount an 'thousand five hundred dollars($7,500)in a calendar year to independent public debate during a contested primary election and two public debates of qualifying contributions collected, and a declaration statink that the office-qualified candidate runningfor the same office could receive. during a contested general election. The debates shall be conducted candidate has complied with all other requirements for eligibility as a expenditure committees that support or oppose candidates for elective in accordance with regulations issued by the Fair'Political Practices participating candidate, but no earlier than the beginning of the primary (3) The amount of Clean Money funding fora qualified candidate in state office. a contested general election is 25 percent of the amount an of h A controlled committee o a candidate shall not make independent Commission. election campaign period. O f P candidate runningfor the same office could receive. expenditures and shall not make contributions to another committee which 91093. (a) No more than five days after a candidate applies for (b) A qualified or performance-qualified candidate for elective state p' Clean Money benefits, the Commission sha certify that the candidate is office shall receive the candidate's Clean Money funding for the general makes independent expenditures to support or oppose candidates. ll • • or is not eligible.Eligibility may be revoked if the candidate violates the election campaign period within two business days after certification of. Article 6. Restrictions a»Nonparticipating Candidates,Political • • • Parties,and Independent Expenditure Committees • requirements of this-act,in which case the candidate shall repay all Clean the primary election results. P p' Article 6.5. Applic ability of Limits to Special Elections uncl Special Runoff Elections Money funds. (c) A participating candidate for Legislature running in the primary 91101. (a).A person, other than a small contributor committee or (b) The candidate's request for certification shall be signed by of the dominant party in a one-party dominant district may choose to olitical artyconmittee,shallntotmaketoan nonparticipating candidate the candidate and the candidate's campaign treasurer under penalty of reallocate a portion of the Clean Money funding amount from the general p p �' ' after The contribution ands anda itr'e/suits and restrictions of election period to the primaryperiod. The candidate shall make this choice or candidates, and a nonparticipating candidate shall not accept fi•oin this chapter apply to special elections and upply to special runof felectlons. perjury. in a writing submitted to the Commission with the materials specified in a person other than a small contributor conunittee or a political party A special election and r special runoff election are,separ•ate elections for j c The Commission's determination is final except that it is subject g committee, any contribution'totaling more than five hundred dollars O fi P J f purposes o the contribution and expenditure provisions set odh in this to a prompt judicial review. subdivision'ho at the close of the qualifying period. The participating ($500)per election, if a candidate for are Legislature or.for the State chapter. f / / f (d) The Commission shall provide updated information on its Web candidate who makes such a choice shall receive e additional amount Board of Equalization, or more than one thousand dollars ($1,000) if a I that reflects changes to a candidate's status as participating or non- equal to 25 percent of the amount specified for the general election for candidutefo•stateivide office.Contributions pursuant to Sectiocr 91115 are participating candidates within 24 hours ofsuch a change. , the appropriate office as set forth in subdivision(b)of Section 91099. The not subject to this requirement. Article 7. Disclosure Regecirenrends amount a participating candidate who makes such a choice shall receive at (b) `The provisions of this section do not apply to a nonparticipating the beginningofthegeneralelectionperiodshallbereducedby25percent. candidate's contributions o personal not to the candidate's own, 91107. (a) Anonpartic•ipating candidate shall notifythe Commission i Article 5. Clean Money Benefits f P f online or electronically on the same day that the candidate spends or Text of Proposed laws 1 177 176 1 Text of Proposed Laws*** ** TEXT OF PROPOSED LAWS * (PROPOSITION 89 CONTINUED) * *TEXT OF PROPOSED LAWS incurs expenditures in excess of the initial amount of Clean Money under penalty ofperjury by the person or persons making the independent establish an inaugural account to cover the cost of events, celebrations, (3) Twenty thousand dollars($20,000)for a candidate running for funding allocated to the candidate's Clean Money opponent or opponents expenditure identifying the candidate or candidates supported or opposed gatherings, and communications that take place as part of, or in honor the office of member of the State Board of Equalization. 1 pursuant to Section 91099. The notification shall include the excess by the independent expenditure, and affirming that the expenditure is of,the officer's inauguration.No inaugural account may exceed$500,000 (4) Two hundred thousand dollars ($200,000) for a candidate amount spent or incurred as of that date.,Upon receiving notification from independent and not coordinated with a candidate or a political party. cumulatively. running fora statewide office other than Governor. a nonparticipating candidate,the Commission shall immediately notify all (d) Any committee that fails to file the required report to the (e) A candidate or officer may receive contributions of up to five (5) Seven hundred fifty thousand dollars($750,000)for a candidate other candidates in that election. Commission or that knowingly provides materially false information in a hundred dollars($500)per person per year in the aggregate for accounts running for Governor. (b) A nonparticipating candidate that spends or incurs expenditures report filed pursuant to subdivisions(a)or(b), may be fined up to three in subdivisions(a),(c),and-(d).All contributions,whether cash or in-kind, in excess of the initial amount of Clean Money funding actually received times the amount of the independent expenditure,in addition to any other shall be reported in a mannerprescribed by the Commission.Contributions Such contributions shall not count against the Clean Money funding by the candidate's Clean Money opponent or opponents, shall notify remedies provided by this act. to such funds shall not be considered campaign contributions.• bypar amounts p mingle candidates t es w thoutcandidatesusing Clean Money maybe it Car directly the Commission online or electronicallywithin 24 hours each time the by participating candidates without using a Clean Money Debit Card. (e) Upon receiving report that an independent expenditure has been . (fi A candidate or elected state officer who has established a legal candidate's committee makes or incurs cumulative expenditures of five made or incurred,the Commission shall immediately notify all candidates accountpursuant to subdivision(a)shall dispose of all leftover funds once the legal dispute is resolved and all ex are discharged.The candidate Article 10. Voter Pamphlet Statements thousand dollars($5,000)or more in excess of the amount(s). in that election and release additional Clean Money funding,pursuant to g P expenses ar g (c) In the event a nonparticipating candidate fails to timely notify the Section 91095, within one business day to all participating candidates in or elected state officer shall dispose of the excess funds consistent with for one or more of the purposes set forth in paragraphs(I)to(5),inclusive,of 91127. The Secretary of State shall designate in the state ballot Commission in accordance with subdivisions(a)and(b),the Commission that specific primary orgeneral election whom the Commission determines pamphlet those candidates who have voluntarily agreed to be participating may make its own determination as to whether excess expenditures have were not beneficiaries of the independent expenditure,subject to the limits subdivision(b)of Section 89519. (g) An elected state officer who has established an officeholder candidates. been made or incurred by nonparticipating candidates. in subdivision(b)of Section 91095. . 91131. (a) A candidate who is a participating candidate may place (d) Upon receiving an excess expenditure notification or determining 91113. (a) In addition to other disclosure provisions contained in account pursuant to subdivision(b)shall return to the state Clean.Money a statement in the state ballot pamphlet and on any Internet Web site listing that an excess expenditure has been made, the Commission shall this Code,all broadcast and print advertisements paid for by a candidate Fund all leftover funds once the officer leaves and all expenses are release additional Clean Money funding to the opposing participating or elective state office or committee controlled b a candidate or elective discharged. of candidates maintained by any government agency including, but not Y f g pp g p P g f ffi Y f limited to, the Secretary of State, that does not exceed 250 words. The performance-qualified and office-qualified candidates within one business state office shall include a.disclosure statement indicating that the (h) An elected state officer who has established an officeholder statement shall not make any reference to any opponent of the candidate. day. The amount released shall be equal to the excess amount spent or candidate has approved of the contents of the advertisement. account pursuant to subdivision(c)shall dispose of all leftover funds once The'candidate may also provide a list of ten endorsers for placement in the incurred by the nonparticipating candidate subject to the limits set forth in the officer leaves office and all expenses are discharged. The elected state ballot pamphlet. This statement and list of endorsers shall be submitted in f (b) The disclosure statement required by subdivision (a) that is subdivision(b)of Section 91095. included in a broadcast advertisement shall be spoken so as to be clearly officer shall dispose of the excess funds consistent with for one or more of accordance with timeframes and procedures set forth by the Secretary of 911075. (a) No candidate for elective state office shall expend or audible and understood by the intended public and otherwise appropriately the purposes set forth in paragraphs(1)to(5),inclusive,ofsubdivision(b) State for the preparation of the state ballot pamphlets. contribute more than$25,000 in personal funds in connection with his or conveyed for the hearing impaired. of Section 89519. (b) A nonparticipating candidate may pay to place a statement in her campaign so as to make the total amount contributed from all sources (c) The disclosure statement required by subdivision (a) that is the appropriate ballot pamphlet or voter information portion of the sample aggregate more than the amount set forth in Section 91099 for the office included in a print advertisement shall be printed clearly and legibly in Article 9. Restrictions on Candidates ballot that does not exceed 250 words, and may pay the price to place a 'for which they are running unless and until the conditions in subdivisions no less than 10-point type and in a conspicuous manner as defined by the list of up to 10 endorsers in the ballot pamphlet. The statement shall not 91117. A candidate for elective state office or any committee make an reference to an opponent o the candidate. The statement shall (b)and(c)are met. Commission. Y f Y PP f � d (b) Notice of the candidate's intent to so expend or contribute shall O p p For ur oses of this section, "advertisement"means any general controlled by the candidate shall not receive any contributions prior to the be submitted in accordance with timeframes and procedures set forth by- beginning of the exploratory period. the Secretary ofState for the preparation of the state ballot pamphlets.The al provided online, electronically, by facsimile, or personal delivery, to or public advertisement which is authorized and paid for by a candidate 91119. A nonparticipatingcandidate ma transfer campaign unds nonparticipatingcandidate shall be charged the pro rata cost o rintin all opponents and to the Commission within IS days of the decision to or committee controlled by a candidate for the purpose of supporting Y f .f g P fP g. expend or contribute, specifying the amount intended to be expended or or opposing a candidate for elective state office, but does not include a from one controlled committee to a controlled committee for elective state handling, translating, and mailing any campaign statement and list of contributed. campaign button smaller than 10 inches in diameter, a bumper sticker office of the same nonparticipating candidate. Contributions transferred endorsers provided pursuant to this subdivision. (c) All personal funds to be expended or contributed by the candidate smaller than 60 square inches, or other advertisement as determined by shall be attributed to specific contributors using a "last in,first out"or pursuant to subdivision (a) shall first be deposited in the candidate's regulations of the Commission. "first in,first out"accounting method,and these attributed contributions Article 10.5. Voter Education and Outreach when aggregated with all other contributions from the same contributor campaign contribution checking account at least 15 days before the shall not exceed the limits set forth in Section 91101,91103 or 91105. 91132. The Secretaryo State shall, usingthe funds provided b made by the candidate and shall triggeerr election. Such deposited funds shall considered expenditure Article 8. Ballot Access,Recount,Legal Defense, 91121. A nonparticipatingcandidate may accept a contribution paragraph 3 o subdivision a o Section91134 conduct voter education matching funds pursuant to , Officeholder,and Inaugural Funds after the date o the election only o the extent that the contribution does not and outreach efforts throughout the state regarding the public campaign i f /� Y ff Sh g g P Section 91095. exceed net debts outstanding from the election and the contribution does funding system established by this chapter and,specifically, the meaning (d) In the event that the candidate contributes or expends more in a 91115. (a) A candidate for elective state office or elected state not otherwise exceed the applicable contribution limit or that election.All behind the statements included in the ballot,as provided in subparagraph personal funds than provided by this section, the matching fund limit set officer may establish a separate account to defray attorney's fees and PP f P forth in subdivision(b)of Section 91095 shall be doubled for all opposing other related legal costs incurred'for the candidate's or elected state debts shall be repaid or written off no later than 90 days after the general (A)of paragraph(2)of subdivision (a)of Section 13207 of the Elections officer's expenses in any litigation over ballot access, qualifications or election. The Commission may extend this deadline for up to an additional Code. Such efforts shall include public service announcements in radio, participating candidates. 90 days upon a ndin o ood cause or the extension based on acts and television, or print media that are disseminated in a manner consistent 91109. (a) In addition to any other report required by this designations, election recounts and contests, or in connection with any circumstances b the candidate. f with the language assistance requirements o the Voting Rights Act, 42 chapter, a committee, including a political party committee, that makes legal defense if the candidate or elected state officer is subject to one or P Yq f g g more civil or criminal proceedings or administrative proceedings arising 91123. Candidates for elective state office may accept monetary or U.S.C. Sec. 1973aa-1. Public announcements disseminated by television, independent expenditures of one thousand dollars($1,000)or more during P g an election cycle to support or oppose a candidate,shall file a report with directly out of the conduct of an election campaign,the electoral process, in-kind contributions from political parties provided that the aggregate radio or print media shall not feature the voice,name,still or video image �the officers governmental P the Commission disclosing the independent expenditure within 24 hours of or the performance of activities and duties. amount ofsuch contributions from all political party committees combined of the Secretary of State. the time the independent expenditure is made or incurred.This report shall These funds may be used only to defray those attorney's fees and other does not exceed the following amounts: Pi a disclose the same information required by subdivision(b)of Section 84204 ' related legal costs. (a) The aggregate amount of monetary or in kind contributions from Article 11. Appropriations for the Clean Money Fund and shall befiled online or electronically if the committee is required to file (b) An elected state officer who accepted Clean Money benefits in the all political party committees combined for each participating and non- reports pursuant.to Section 84605,and by facsimile,personal delivery or election shall receive$50,000 annually from the Clean Money Fund, if a participating candidate in a primary,special,or special runoff election is: 91133. A special, dedicated, nonlapsing Clean Money Fund is by such other means as determined by the Commission for committees that member of the Legislature,or$100,000 annually for all statewide offices to (1) Twelve thousand five hundred-dollars($12,500)for a candidate created in the State Treasury. The Franchise Tax Board shall deposit into do not file reports electronically. defray officeholder expenses.Any such elected state officer shall not accept running for the office of Member of the Assembly. the Clean Money Fund fees generated from the following assessments: private contributions from"an source or his or her officeholder account (2) Twenty-five thousand dollars($25,000)for a candidate running (a) an increase of 0.2 in the rate for amounts paid on taxable income (b) An expenditure may not be considered independent,and shall be P f y f treated as a contribution from the person making the expenditure to the for the currently held office unless such officer raises private contributions for the office of Member of the State Senate. as provided in subdivision(g)of Section 23151 ofthe Revenue and Taxation • • candidate on whose behalf,or for whose benefit,the expenditure is made, for a campaign account in excess of the amounts set forth in Sec. 91087. O fi ( )f Code[from 8.84 percent to 9.04 percent]; • 3 Twelve thousand five hundred dollars $12,500 or a candidate if the expenditure is made under any of the following circumstances: In the event that such elected officer raises private contributions for a running for the office of member of the State Board of Equalization. (b) an increase of 0.2 in the rate for amounts paid on taxable income (1) The expenditure is made with the cooperation of,orinconsultation campaign account in excess of the amounts set forth in Sec. 91087, he or 4 One hundred thousand dollars $1OQ000 or a candidate asprovided insubdivision(b)ofSection 23186ofthe Revenue and Taxation with,the candidate on whose behalf,or for whose benefit,the expenditure she shall no longer receive money for an officeholder account as of the O ( ) f Code[from 10.84 percent to 11.04 percent];and start of the next calendar year and may raise private contributions for an running for a statewide office other than Governor. is made,or any controlled committee or any agent of the candidate. officeholder account pursuant to subdivision(c)of Section 91115. (5) Five hundred thousand dollars ($500,000) for a candidate (c) an increase in the tax imposed x passive investment income o ffi P under Section 23811 of the Revenue and Taxation Code from 1.5 percent (2) The expenditure is made in concert with, or at the request or I suggestion of, the candidate on whose behalf, or for whose benefit, the (c) An elected state officer who did not accept Clean Money benefits runningfor Governor. to 1.66 percent of annual net passive investment income for corporations expenditure is made, or any controlled committee or any agent the in the election for his or her current office may establish a separate account (b) The aggregate amount ofmonetary or in kind contributions from with over$50 million in total receipts. candidate. to defray officeholder expenses that are set forth by the Commission. No all political party committees combined for each participating and non- 91134. (a) The Franchise Tax Board shall administer the collection funds from this account shall be used for a mass mailing. The aggregate participating candidate in a contested general election is: of the Clean Money Fees described herein, including any penalties and (3) The expenditure is made under any arrangement,coordination, amount contributed to any officeholder account shall not exceed fifty (1) Twenty thousand dollars($20,000)for a candidate running for or direction with respect to the candidate or the candidate's agent and the thousand dollars ($50,000) annually for any legislative officer or one the office of Member of the Assembly. interest. The Clean Money Fund is established for the following purposes: n making the expenditure. hundred thousand($100,000)for any statewide officer. (1) Providing public financingfor the election campaigns ofcertified person' (2) Forty thousand dollars($40,000)for a candidate runningfor the participating candidates during primary and general campaign periods. (c) The report to the Commission shall include a signed statement (d) A Governor,Lieutenant Governor,or other statewide officer may office of Member of the State Senate. 178 1 Text of Proposed Laws 1t** ***Text of Proposed Laws 1179 i I TEXT OF PROPOSED LAWS * (PROPOSITION 89 CONTINUED) *TEXT OF PROPOSED LAWS (2) Paying for the administrative and enforcement costs of the Corporations in Connection with State Candidate Elections and implementing the comparable provisions of the Federal Election the requirements of this section and governing the administration and Campaign Act. solicitation of contributions to separate segregated funds established Commission related to this chapter. The Commission shall annually be (a) Except as provided in subdivision(c)of this section,and except appropriated at least three million dollars($3,000,000),adjusted for cost- for direct contributions pursuant to subdivision (a)of Section 91101, it is r accordance with paragraph (3)intent subdivision (te The Commission's f g g p unlawfulforanynationalorstatebankorforanycorporationincorporated Articlel4. Limits Connection hStaons llotMead re El coonsby Corporations regulations shall to the the intent of the voters in adopting this o-livin changes as provided in Section 82001,to administer this act. (3) Paying for the voter education and outreach efforts as provided under the laws of this or any other state or any foreign country, to make in Connection with State Ballot Measure Elections section and shall, to the maximum extent coonpract cable, ss consistent with in Section 91132, except that the annual amount of funds available for a contribution or expenditure in connection with the election of any the regulations adopted the by the Federal Election Commission interpreting these efforts shall be no more than five percent of the amount specified in candidate for elective state office. It shall likewise be unlawful for any Connection Limits on Contributions or Expenditures by Corporations in and implementing the comparable provisions of the Federal Election subdivision(a)for the each of the first two years after implementation of candidate, committee, or other person knowingly to accept or to receive Connection with State Ballot Measure Elections Campaign Act. this chapter in which there are elections, and no more than one percent any contribution prohibited by this section, or for any officer or any (a) Except as provided in subdivision (C, it is unlawful for any every year thereafter in which there are elections. Funds unused by the director of any corporation or of any national or state bank to consent to national or state bank or for any corporation incorporated under the laws Article 15. Nonprofit Corporation Exemption Secretary of State shall revert to the Clean Money Fund,annually. any contribution or expenditure by the corporation or national or state of this or any other state or any foreign country, to make contributions (b)Funds collected pursuant to this section shall first be collected in bank,as the case may be,prohibited by this section. or expenditures to support or oppose the qualification,passage or defeat 91140. Nonprofit Corporations Exempt from Prohibitions and the 2007-08fiscal year and in each subsequentfiscal year. (b) For purposes of this section, the term "contribution or of a state ballot measure that in the aggregate exceed $10,000 for or Limits on Political Contributions or Expenditures en or rodeenditure expenditure" includes a contribution, expenditure dent against any statewide ballot measure.It shall likewise be unlawful for any (a) The�prohibitions and limits on contributions or expenditures set 91135. Other sources of revenue to be deposited in the Clean Money P P P candidate, committee, or other person knowingly to accept or to receive forth in Sections 91138 and 91139 shall not apply to aqualified nonprofit Fund shall include all of the following: expenditure, as those terms are defined e Sections distribution, tion, and an contribution prohibited in excess o the limits established b' this corporation that has all o the following characteristics: (a) The qualifying contributions required of candidates seeking 8dvan and also includes any direct or indirect payment,distribution,loan, Y P f Y P f f g advance, deposit, orgift o money, or an services, or anything o value section, or for any officer or any director of any corporation or of any I It does not qualify as or engage in an o the activities o a to become certified as participating candidates and candidates'excess P f Y y y i f national or state bank to consent to an contribution or expenditure b O q fYy f f provided to any candidate or committee (including any political party Y P Y business entity,as defined in Section 82005; qualifying contributions. committee in connection with an election or elective state office,except the corporation or national or state bank,as the case may be,prohibited b The excess seed money contributions o candidates seeking to ) Y f ffi p (2) It has: O Y f that nothing in this section shall prohibit(I)a loan of money by a national by this section. become certified as participating candidates. (A) No shareholders or other persons, other than employees and P P g or state bank made in accordance with the Rpplicable banking laws and (b) For purposes of this section, the term "contribution or creditors with no ownership interest,affiliated in anyway that could allow (e) Unspent or'uncommitted funds shall be returned no later than regulations and in the ordinary course of business;or(2)the payment or expenditure" includes a contribution, expenditure or independent them to make a claim on the organization's assets or earnings;and thirty days following the date of the close of the primary election period or receipt of interest earnings,stock or other dividends on investments where expenditure, as those terms are defined in Sections 82015, 82025 and the general election for which they were distributed.The Commission shall the interest or dividends are received in accordance with the applicable 82031,and also includes any direct or indirect payment,distribution,loan, (B) ve persons who are offered or se receive any benefit that is a advance, deposit, orgift o money, or an services, or anything o value disincentive for them a disassociate themselves with the corporation on promulgate regulations in furtherance of this subdivision. banking laws and in the ordinary course of business. . I P f Y. Y Y g f (d) Fines levied by the Commission against candidates for violation (c) For purposes of this section, the term "contribution or provided to any candidate or committee, including any political party the basis of the corporation's position on a political issue. i committee, to support or oppose the qualification,passage or defeat of a (3) It: of election laws. expenditure"shall not include state ballot measure, except that nothing in this section shall prohibit 1 A Was not established b a business entity; (e), voluntary donations made directly to the Clean Money Fund. (1) communications by a bank or corporation to its stockholders and P g P O O Y y' (f) Any interest generated by the Clean Money Fund. executive or administrative personnel and their immediate families on any a loan of money by a national or state bank made in accordance with the (B) Is not affiliated"with a business entity within the meaning of applicable banking laws and regulations and in the ordinary course of Section 150 of the Corporations Code; 91136. The amount of money in the Clean Money Fund shall not subject; business,or 2 the payment or receipt o interest earnings,stock or other exceed four times the amount of six dollars ($6.00) times the number 2 nonpartisan registration and et-out-the-vote campaigns ; O P Y P f g' (C) Is not composed of members that are,business entities or that O p g g dividends on investments where the interest or dividends are received in of California residents. Any funds that, if deposited in the Clean Money by a bank or corporation aimed at its stockholders and executive or accordance with the applicable'banking laws and in the ordinary course engage in the activities of a business entity; Fund,would cause the balance in the fund to exceed this amount shall be administrative personnel and their immediate families;and of business. (D) Does not directly or indirectly accept donations of anything of. irrevocably transferred to the General Fund. (3) the establishment,administration, and solicitation by a bank or (c) For purposes of this section, the term "contribution or value from business entities;and 1 corporations of contributions to a separate segregated fund to be utilized expenditure"shall not include(1) communications by a bank or corporation (4) If unable,for good cause, to demonstrate through accounting Article 12. Limits on Contributions to for making political'contributions or expenditures,provided that the fund to its stockholders and executive or administrative personnel and their records that subparagraph(D)of paragraph(3)is satisfied,has a written �.� Candidate-Controlled Ballot Measures may consist only of voluntary contributions solicited from individuals who immediate families on any subject, (2)nonpartisan registration and get- Policy against accepting donations from business entities;and are either stockholders,members or employees of the bank or corporation, out-the-vote campaigns by a bank or corporation aimed at its stockholders (5) It is described in 26 U.S.C.§501,.(aj and(C). 91137. Limits on Contributions to Candidate-Controlled Ballot and their immediate families. and executive or administrative personnel and their immediate families, (b) Whenever a qualified nonprofit Corporation solicits donations, Measure Committees (d) It shall be unlawful for any separate segregated fund established or (3) the establishment, administration, and solicitation by a bank or the solicitation shall inform potential donors that their donations may be a candidate in accordance with paragraph(3)of subdivision(C)to make a contribution corporation of contributions to a separate segregated fund to be utilized used for political purposes. committee not controlled b P g a A ballot measure co Y for elective state office or an elected state officer is not subject to the or expenditure by utilizing money or anything of value secured by physical for making political contributions or expenditures,provided that the fund (c)'Qualified nonprofit corporations possessing all of the provisions of this section.A ballot measure committee becomes subject to force,job discrimination,financial reprisals, or the threat of force,job shall consist only of voluntary contributions solicited from individuals who characteristics enumerated in subdivision (a)remain subject to all other the provisions of this section once it becomes controlled by one or more discrimination,orfinancial reprisal;or by dues,fees,or otherfunds required are either stockholders,members or employees o the bank corporation, fapplicable requirements and limitations of this title, including those as a condition o employment; or b unds obtained in any commercial and their immediate families. candidates for elective state office,as defined in Section 820I6. However, fY f f provisions requiring disclosure of any contributions or expenditures' ual who ceases to be transaction. It shall be unlawful for any person soliciting an employee d It shall be unlaw ul or an separate se re ated and established permitted b this section. ' ee controlled b an individual O p g a ballot measure Committee y f f Y g f P Y a candidate as defined in Government Code Section 82007 is no longer for a contribution to any separate segregated fund(1)to fail to inform the in accordance with paragraph(3)ofsubdivision(c)to make a contribution subject to the provisions of this section. employee of the-political purposes of the fund at the time of the solicitation; or expenditure b utilizingmoney or anything o value secured b h sical and(2)to fail to inform the employee,at the time of the solicitation,of his or P y c Y g f YP Y Article 16. Administration - (b) No person shall make a,contribution or contributions totaling force,job discrimination,financial reprisals, or the threat of force,job in excess of ten thousand dollars ($I0,000) to any committee that is her right to refuse to so contribute without any reprisal. discrimination, or financial reprisal; or by dues,fees, or.other funds 91141. (a) Upon a determination that a candidate has met all the establishedfor the purpose ofsupportingor opposing a state orlocal ballot (e) This section shall not prevent a trade association or a separate required as a condition of employment; or by funds obtained in any requirements for becoming a participating candidate as provided for in measure and that is controlled by a candidate for elective state office or segregated fund established by a trade association from soliciting commercial iransaction.It shall be unlawful for any person soliciting an this act,the Commission shall issue to the candidate a card,known as the an elected state officer.This contribution limit shall apply as an aggregate contributions from the stockholders and executive or administrative employee for a contribution to any separate segregated fund(1) to fail "Clean Money Debit Card,"and a "line of debit"entitling the candidates limit upon all contributions made by any person to all ballot measure personnel of the member corporations of the trade association and the to,inform the employee of Zhe political purposes of the fund at the time and members of the candidate's staff to draw Clean Money funds from a committees controlled ty the same candidate for elective state office or immediate families of the stockholders or personnel to the extent that of the solicitation; and(2) to fail to inform the employee, at the time of Commission account to pay for all campaign costs and expenses up to the the same elected state officer, even if those committees are established the solicitation of the stockholders and personnel, and their immediate the solicitation, of his or her right to refuse to so contribute without any amount of Clean Money funding the candidate has received. for the purpose of supporting or opposing different state or local ballot families, has been separately and specifically approved by the member reprisal. • • measures,and even if one or more of those ballot measure committees are corporation involved,and the member corporation does not approve any e This section shall not prevent a trade association or a separate (a Neither a participating candidate nor any other person on behalf • controlled by more than one candidate for elective state office or elected such solicitation b more than one such trade association in any calendar O P P of a participating candidate shall pay campaign costs by cash, check, • y segregated fund established by a trade association from soliciting money order, loan,or by any other financial means other than the Clean state officers. year. contributions from the stockholders and executive or administrative (c) A ballot measure committee that is primarily formed to support For ur oses o this section,the term"executive oradministrdtive Money Debit Card,except for contributions received from political party P Yf PP (f) p p f personnel of the member corporations of the trade association and the committees in accordance with Section 91123. or oppose a ballot measure or measures and that is controlled by a personnel"means individuals employed by a corporation who arepaid on a immediate families of the stockholders or personnel to the extent that the candidate for elective state office or an elected state officer is subject to the salary,rather than.hourly,basis and who have policymaking,managerial, solicitation of the stockholders and personnel,and their immediate families, (c) Cash amounts of one hundred dollars used p less per day may be drawn on the Clean Money Debit Card and used to pay expenses of no post-election fundraising limitations of Section 85316.A general purpose professional,or supervisory responsibilities. has been separately and specifically approved by the member corporation more than twenty-five-dollars($25)each.Records ofall such expenditures ballot measure committee is not subject to the post-election fundraising, (g) The Commission shall promulgate regulations implementing involved,and the member corporation does not approve any such solicitat ion limitations of Government Code Section 85316. the requirements of this section and governing the administration and by more than one such trade association in any calendar year. shall be maintained and reported to the Commission. solicitation of contributions to separate segregated funds established (f) Forpurposes ofthis section,theterm"executive oradministrative 91142. If the Commission determines that there are insufficient Article 13. Limits on Contributions or Independent Expenditures by in accordance with paragraph (3) of subdivision (c). The Commission's personnel"means individuals employed by corporation who arepaid on a .funds in the program to fund adequately all candidates eligible for Clean Corporations in Connection with State Candidate Elections regulations shall conform to the intent of the voters in adopting this salary,rather than hourly,basis and who have policymaking,managerial, Money funds, the Commission shall reduce the grants proportionately to p all eligible candidates. If the Commission notifies a candidate that the section and shall, to the maximum extent racticable, be consistent with professional,or supervisory responsibilities. 91138. Limits on Contributions or Independent'Expenditures by the regulations adopted by the Federal Election Commission interpreting The Commission shall promulgate regulations implementing Clean Moneyfunds will be reduced and the candidate has not received any ' (g) P g g P g Clean-Money funds, the candidate may decide to be a nonparticipating **1801 Text of Proposed Laws* *Text of Proposed Laws 1 181 ** - � _ TEXT OF PROPOSED LAWS* * * (PROPOSITION 89 CONTINUED) * * * TEXT OF PROPOSED LAWS candidate. If a candidate has already received Clean Money funds or agents to knowingly accept more Clean Money benefits than those to which with Section 91015) of the Government Code are participating or the communication states a proposition number, official title, or popular wishes to start receiving such funds, a candidate who wishes to collect they are entitled,spend more than the amount of Clean Moneyfunding they nonparticipating candidates. The Fair Political Practices Commission name associated with the measure, or if the communication refers to the contributions may do so in amounts up to the contribution limits provided have received,or misuse such benefits or Clean Moneyfunding. shall provide to the Secretary of State the information necessary to satisfy specific subject matter of the measure and either states or refers to the fact, for nonparticipating candidates but shall not collect more than the total (b) Any person, including an individual specified in Section 91115, the requirements of this paragraph (2) in a manner that will permit the that the measure is before the people for a vote. timely preparation and printing of the ballot. The Secretary of State shall of Clean Money funds that the candidate was entitled to receive had there who knowingly or willfully violates any provision of this chapter is guilty (c) Notwithstanding subdivision(b), "expenditure"does not include been sufficient funds in the program less the amount of Clean Money funds, of a misdemeanor.Any person who knowingly or willfully causes any other then immediately transmit the information to county election officials. the costs for: (A)a communication appearing in a bona fide news story, that will be or have been provided. I, at a later point, the Commission (3) Whatever measures have been submitted to the voters. commentary,or editorial distributed through the facilities of any regularly P .f P person to violate any provision of this chapter,or who aids and abets any determines that adequate funds have become available, candidates, who other person in the violation of any provision of this chapter,shall be liable (b) In the case of a ballot which is intended for use in a party primary published newspaper, magazine, periodical of general circulation, or have not raised private funds,shall receive the funds owed to them. under the provisions of this article. and which carries both partisan offices and nonpartisan offices,a vertical broadcasting station, unless the facilities are owned or controlled by 91143. (a) At the end ofthe primary election period;a participating (c) Prosecution of a violation of any provision of this chapter shall solid black line shall divide the columns containing partisan offices,on the any political party, committee, or candidate; (B) a communication candidate who has received funds pursuant to Article 5 shall return to be commenced within four years after the date of the violation. left,from the columns containing nonpartisan offices,on the right. which constitutes a candidate debate or forum, or solely promotes such the fund all funds in the candidate's campaign account above an amount 91147. (a) No person convicted of a misdemeanor under this (c) The standard width of columns containing partisan and a debate or forum, and is made by or on behalf of the person or entity sufficient to pay any unpaid bills for expenditures made during the chapter shall act as a lobbyist,state contractor,run for elective office,or nonpartisan offices shall be three inches, but an elections official may sponsoring the debate or forum; (C) a communication in a regularly primary election period and for goods or services directed to the primary be eligible for appointed office or commission appointment for a period vary the width of these columns up to 10 percent more or less than the Published newsletter or regularly published periodical,whose circulation three-inch standard.However,the column containing residential and vice is limited to an organization's members, employees, shareholders, other election. offive years following the date of the conviction unless the court at the g P (b) At the end of the general election period, a participating time of sentencing specifically determines that this provision shall not be presidential candidates may be as wide as four inches. affiliated individuals,and those who request or purchase the publication; candidate shall return to the and all funds in the candidate's campaign or(D)anyother communications exempted under such regulations as the f /� applicable.Non-candidate persons convicted for violations of this chapter (d) Any measures that are to be submitted to the voters shall be printed Commission may promulgate to ensure the appropriate implementation of account above an amount sufficient to pay any unpaid billsfor expenditures shall be prohibited from receiving compensation for any electioneering in one or more parallel columns to the right pf the columns containing the made before the general election and for goods or services directed to the activities or from firms that receive compensation for election activities names of candidates and shall be of sufficient width to contain the title and this section consistent with the requirements of this subdivision. general election.. for a period offive years following the date of conviction unless the court summary of each measure.To the right of each title arid summary shall be (d) "Expenditure"does not include a candidate's use a his or her fc) A participating candidate shall pay all uncontested and unpaid at the time of sentencing specifically determines that this provision shall printed,on separate lines,the'words"Yes"and"No." own money t pay for either a filing fee for a declaration of candidacy or a candidate statement prepared pursuant to Section 13307 of the Elections bills referenced in this section no later than thirty days after the primary not be applicable. SEC. 3. Section 82016 of the Government Code is amended to Code. or general election.A participating candidate shall make monthly reports (b) If the court determines that the violation was intentional and read: to the commission concerning the status of the dispute over any contested involved an amount that had or could have been expected to have a 82016. Controlled Committee (e) An expenditure is made on the date the paj ment is made or on the bills.An unds in a candidate's campaign account after payment o bills date consideration,if any,is received,whichever is earlier. Any funds f P Y f material effect on the outcome of the election,the candidate may be fined (a) "Controlled committee" means a committee that is controlled shall be returned promptly to the fund. up to twenty-five thousand dollars($25,000),or imprisoned for up to five directly or indirectly by a candidate or state measure proponent or that SEC. 5. Section,82031 of the Government Code is amended to (d) If a participating candidate is replaced, and the replacement years, or both.Any person who is found guilty of any criminal violation acts jointly with a candidate, controlled committee, or state measure read: candidate files an oath with the Secretary of State certifying that he-or of this act shall be sentenced to at a minimum of at least one day and one proponent in connection with the making of expenditures.A candidate or 82031. Independent Expenditure she shall assume all responsibility for compliance with the provisions of night in jail. state measure proponent controls a committee if he or she,his or her agent, "Independent expenditure" means an expenditure, as defined in this chapter concerning the current status and ongoing administration of (1) If a candidate is convicted of a misdemeanor violation of any or any other committee he or she controls has a significant influence on the Section 82025,subdivision (b), made by any person in sass__.:__with-a the campaign account,and further certifying that he or she will faithfully provision of this chapter, the court shall make a determination as to actions or decisions of the committee. comply will all provisions of this*chapter applicable the participating whether the violation had a material effect on the outcome o the election. ff f � (b) Notwithstanding subdivision(a),a political party committee,as identificd candidate or the qualification, passage or defeat of a clearly candidate status he or she is assuming as a replacement candidate, the If the court finds such a material effect,or that a participating candidate defined in Section$52$5 91057,is not a controlled committee. identified me�sttte, or takert as a whole and in context, unambiguously campaign account of the participating candidate shall be transferred to the spent or incurred more than 10 percent above the Clean Moneyfunding the but which is not made to,or at the replacement candidate and the commission shall certify the replacement f Y yfi (c) For purposes of Section 91137, a candidate shall be deemed to p fY P candidate received from the Clean Money Fund, in addition to an nes behest of,or in coordination with the affected candidate or committee. candidate as a participating candidate with the same status, rights and s eci ed in this subdivision,the candidate shall re a to the Clean Mone control a ballot measure committee if any of the following,conditions are P fi P y Y met: SEC.6. Section 85203 of the Government Code is repealed. obligations as the replaced candidate.If the replacement candidate does Fund an amount up to 10 times the value of the excess,and: not file such an oath, the campaign account shall be liquidated and all (1) Decisions on how the committee's funds are to be expended are (A) if the conviction becomes final before the date of the election, effectively directed by or coordinated with the candidate or his or her `' remaining funds returned to the fund. the votes for the candidate shall not be counted,and the election shall be 4ee f6i at least six months. determined on the basis of the votes cast for the other candidates in that age (a) The eominittee has been in existe nt; Article 17. Cost of Living race; (2) The candidate personally solicits contributions to the committee, (B) if the"conviction becomes final after the date of the election,and' either telephonically or through direct oral communications with donors; Pig 91144. The Commission shall adjust the contribution-limitations, or ithe candidate was declared to have been elected,then the candidate shall _ spending limits, seed money provisions,funding amounts provided and not assume office, the office shall be deemed vacant and shall be filled as (3) The candidate appears in broadcast advertisements paid for by the Clean Money Fund provisions in January of every odd-numbered otherwise provided bylaw; the committee at the candidate's behest. . year to reflect any increase or decrease in the Consumer Price Index and (C) if the conviction becomes final after the candidate has assumed SEC. 4. Section 82025 of the Government Code is amended to SEC.6.1. Section 85205 of the Government Code is repealed. the increase in registered voters. Those adjustments shall be rounded to read: 85205. "Political party eommittee" means the state eentral nearest ten`the near dollars($10)for the seed money provisions, one hundred office,then the candidate shall be removed from office,the office shall be dollars est ten for the limitations on contributions, and one thousand deemed vacant and shall be filled as otherwise provided by law;and 82025. Expenditure Committee or eounty eeittial emninittee of an oiganization that meets tile or any office for (a) "Expenditure" means a payment, a forgiveness of a loan, a dollars($1,000)for the Clean Money provisions. (D) the person convicted shall be ineligible to run f __:___ a period offive years after the date of the conviction. payment of a loan by a third party,or an enforceable promise to make a ofthe 9114o On or before December t of each year ending a one, the unless it is clear from the surrounding circumstances that it is SEC.6.2. Section 85206 of the Government Code is repealed. • Commission shall prepare and provide to each Member of the Legislature (2)ylfa participating candidate spends or incurs more than the Clean payment, g p Mone funding the cand?date is given, and i it is determined b a court not made for political purposes. "Ptiblic moneys"has the same meaning as defined in Seetion and to the standing committees in the Assembly and the Senate with Money g g f Y not to be an amount that had or could have been expected to have had a (b)'"Expenditure"includes any monetary or nonmonetary payment 426_fthe r_�_ jurisdiction over elections a report containing a review and analysis ' of the functioning of the Clean Money Fund and the Commission's material effect on the outcome of the election, then the candidate shall made by any person that is used. SEC.6.3. Section 85300 of the Government Code is repealed. recommendations as to whether additional cost of living adjustments, repay to the Clean Money Fund an amount equal to the excess. (I) For any communications that expressly advocate the nomination, 85300. N�public offleer shall expend and no eandidate shall accept beyond those specified in Section 91144 should be made to the spending (c) The same.penalties as provided in subdivision (b) of Section election or defeat of a clearly identified candidate or candidates, or the any public moneys fbi the purpose of seeking eleetive offiee� limits, seed money provisions,funding amounts provided and the Clean 91146 and Section 91147 shall apply for determinations made by the qualification.passage or defeat of a clearly identified ballot measure or SEC.6.4. Section 85302 of the Government Code is repealed. • • Money Fund provisions of this chapter, and suggesting other changes Commission,subject to court review. measures;or • that are advisable to further the purpose of this act. The Commission's SEC.2.' Section 13207 of the Elections Code is amended to read: (2) For any broadcast, cable, or satellite communications that(A) _ _ _ _ _for elective state offiee other than a _ ___ _ recommendations shall be based upon an analysis of the disclosures of 13207. (a) There shall be printed on the ballot in parallel columns refer to a clearly identified candidate for elective state office or to a state __ ____ office, and _ a_a,a_te for _,__.:_._ state office, othet _ _ campaign contributions and expenditures made by nonparticipating all of the following: ballotmeasurethathasqualifiedtoappearon the ballot,(B)aremadewithin eandidate for statewide elective office candidates in the preceding decade and other campaign financing 30 days before a primary election or 60 days before a general,special,or (1) The respective offices. f in ormation available, and this analysis shall be set forth in detail in special runoff election for the office sought by the candidate or at which the with sufficient blank spaces to al low the 2 The names of candidates wr s the report. Amendments to this chapter made in accordance with the O P state ballot measure will be voted on,and(C)can be received by 50,000 or dollars($6,0 )Pei election. recommendatio n may be adopted b a vote o 55 percent o voters to write in names not printed on the ballot. more ersons in the electoral jurisdiction in which the candidate or ballot (b) Exee t to a candidate for Governor,a small conti ibutot commit Commission'sP J Y P Y f P f , ure. A Underneath the name o each candidate shall state either: "This measure will be voted on. A candidate is "clean identified"within the may not make to both houses o the Legislature. � f Y f g () candidate is a participant in the public campaign f oidingsystem."or"This meaning of this subdivision if the communication states his or her name, Article 18. Enforcement candidate is not a participant in the public campaign funding system." makes unambiguous reference to his or her office or status as a candidate, aceept front a small e o.,tributoor eormnitte.,,any eontiibuti(ni totaling more than ten thousand do lars 10,000'per eleetion. (B) The Fair Political Practices Commission shall determine or unambiguously describes him or her in any manner. A state ballot 91146. (a) It is unlawful for participating candidates or their which candidates in every election covered by Chapter 12 (commencing measure is "clearly identified"within the meaning of this subdivision if 1821 Text of Proposed Laws*** **Text of Proposed Laws 1 183 f TEXT OF PROPOSED LAWS * * * (PROPOSITION 89 CONTINUED) .* *.* TEXT OF PROPOSED LAWS lot GOVeInOr-,and a candidate f6i governor may not accept fi-om a small specific contributors. initial (a) With the exception of banks and financial corporations, every corittibutoi committee, ally contribution totaling more than twenty stn errtent fin on and office." corporation doing business within the limits of this state,and not expressly (e) Notwithstanding Section 91137, a candidate may transfer fundsp g p y election.thousand dollars($20,000)per without limitation from one ballot measure committee controlled by the exempted from taxation by the provisions of the Constitution of this state SEC.6.5. Section 85303 of the Government Code is repealed. candidate"to another ballot measure committee controlled by the same or by this part,shall annually pay to the state,for the privilege of exercising the its corporate franchises within this state,a tax according to or measured by candidate. its net income,to be computed at the rate of 7.6 percent upon the basis of its politicalcommittee, SEC.8. Section 85314 of the Government Code is repealed. - - vm election net income for the next preceding income year,or if greater,the minimum coturnittee may no ....pt, any contribution totalin inote titan five 85314, The contribution lintits of this chapter ar -eial special tax specified in Section 23153. thousand dollars ea; for the purpose of making eleFt s and a�ply to special funOff elections. A speci�',`c!e,e_tio_,n_and rf__ (b) For'calendar or fiscal years ending after June 30, 1973, - -o elections-fcr oses the rate of tax shall be 9 percent instead of 7.6 percent as provided by (b) A person rnay'not rnake to any political party eoininiftee-,-and- conti ibution a! dittrie limits set fefth iLI this Chapter. i voluntary expen -_ -_t­....voluntary expenditure hinits othet than as provided for by this subdivision(a). SEC.8.1. Section 85317 of the Government Code is repealed. sectsectionand Section 85402. (c) For calendar or fiscal years ending in 1980 to 1986,inclusive,the than twelLty-five thousand dollars ($25,000) per calen I yeat for the 8,5317. Notwithstanding �ubdivision (a) of Section 85306, a SEC.8.5. Section 85402 of the Government Code is repealed. rate of tax shall be 9.6 percent. purpose of making contributions fOL the support or defeat of candidates. candidate fbL elective state office may carry ove. e0liftibutions raise ­­1 1 1 . — ka, AIty candidate tot elective state office who has filed (d) For calendar or fiscal years ending in 1987 to 1996,inclusive,andfen elective state office.Notwithstanding Section 85312,14' in connection with one election for Ilectim state offic statement accepting the volunta-y expenditure iiiiiits is not bound by those . for any income year beginning before January 1, 1997,the tax rate shall to contributions nade to a political expenditures-incut red offiith ce. be 9.3 percent. expenditures at the 1__h__, -f- ;tate office same elective state own campaign in execs ofthe hinit.'It SM... (e) For any income year beginning on or afterJanuary 1,1997,the tax elective state offim. SEC.8.2. Section 85318 of the Government Code is repealed. (b) The commission shall require by regulation timely notification rate shall be 8.84 percent.The change in rate provided in this subdivision A candidate for elective state offic,inay raise e0nft ibutions by candidates for elective state office who inake personal contributions to shall be made without proration otherwise required by Section 24251. (e) Except as provided in Seeflon b5mo,nothing III H-11i for a general election prier 'to the .­01 a ,pMat (f)(1) For the first taxable year beginning on or after January 1, provided the,contributions are used general election ptior to a speeia f6t the same elec SEC.8.6. Section 85403 of the Government Code is repealed. 2000,the tax imposed under this section shall be the sum of both of the state office if the candidate sets aside these contributions and uses these contributions to candidates lot elective state office. corutibutions fOL the g ta! election. ifthe 85403. -An "es a statement ofaceeptance pursuant following: t 4- tc Section 85401�rtd makes campaign expenditures in excess ofthe limits (A) A tax according to or measured by net income,to be computedfront tiansfinring cotiffibutions received by the candidate in excess of any special ptimary election,orotherwise withdraws from the general eleetto 'the reiriedies in ehapter 3 (5ornin(d) Nothing in this ehaptei limits a candidate for elected state office candidate for elective state offie e election o at the rate of 8.84 percent upon the basis of the net income for the next atnount neeessaty to defray the candidate's expenses for election related ut special general election,the special general cleetio! HMO)an neing with Seeti preceding income year, but not less than the minimum tax specified in activities ot holding office to a political party eorninitt"111"d"d-those funds SEC.8.7. Section 85501 of the Government Code is repealed. Section 23153. N ttansferied contributions are used ft)r pur poses consister exper"c"associated with the raising and administration a! 85501. A controlled committee of a caLididate may not mxe (B)A tax according to or measured by net income,to be computed at (4)of subdivision(b)of Section 895 1 97. or special genetal election contributions.Notwith_­­... independent expenditures and in funds the rate of 8.84 percent upon the basis of the net income for the first taxable SEC.6.6. Section 85304 of the Government Code is repealed. year beginning on or after January 1,2000,but not less than the minimum tax specified in Section 23153. 85304. (a) A candidate for elective state office ort­-an�� eotiffibution accounts for the ptimaty and general special ot oppose othet candidates. officer may establish a separate account to defray attor ptinvaty and special general elections. SEC.8.8. Section 85600 of the Government Code.is repealed. (2) Except as provided in paragraph(1),for taxable years beginning related legal costs incurred for the candidate's oi offic SEC.8.3. Section 85400 of the Government'Code is repealed. TheSecietaryofStateshalldesignateon or after January 1,2000,the tax imposed under this section shall be a inth if the candidate I offi er is subject to one 0I MOLe Civil oi criminal 85400. (a) A candidate lot electivetatewide elec e - ce ,•r tax according to or measured by net income,to be computed at the rate of 1. __ pamphlet those candidates tot 8.84 percent upon the basis of the net income for that taxable year,but not proceedings or a igs al-ing dii.Cctly out of the Board of Administration of the Public Employees' Retir-Mut System, T1 Section 82053,who,have voluntarily agreed to conduct of art election campaign,the toral process,or tile pdrfbL manee who voluntaLily accepts expendittne litnits may not make campaign i set R)rih in Section 8540Y-.Local elections offleets shall desig less than the minimum tax specified in Section 23153. of the officer's govetrunental activities and duties. These funds irtay be (g)(1) For the first taxable year beginning on or after January 1, 11 expenditures in excess oFthe fbllowirfg� voter informatio I portion of the sainple ballot those candidates for St these attorney Res and othei related!,gal costs. k,..rabjy-Taftdidat� 2007, the tax imposed under this n s section shall be the sum o both o the four _-_d__d _thousand 'viiarn p f f ($400,000)in th --on and seven hundred limitations set fir•'-in S__..__85400 following: net subject to the contribution iirnits set forth in this article. However, at,(ima,060) a!genei a!election. SEC.8.9. Section 85601 of the Government Code is repealed. (A) A tax according to or measurec�'by net income, to be computed all contributions ...... in a unInne, presenbee, ,Y 1- (2) ForaSenateeandi ate,sixhundicd thousanddollars-f$600;0" 85601. (a) A candidate f6i statewide eleeti at the rate of 9.04 percent upon the basis of the net income for the next preceding income year, but not less than the minimum tax specified in in the ptirnary oi special ptinnaty election and nine hundred thou Section Section 23153. (c) Once the legal dispute 'is re te shall dispose dollars( I election. Section 85400 inay purchase the spa�e to place a st 2tily Funds Yen! associated wit.. (3) FoI a candidate for the State Board of Equali-ation,one million ballot pamphlet that does not exceed 250 words. The (B) A tax according to or measured by net income,to be computed at discharged lot one ar-more of the put paragt aphs(I)to the rate of 9.04 percent upon the basis of the net income for the first taxable dollai s($1,000,000)in the pt iniat y election and one million-+ve-hundred make any telex enee to any opponent of the candidate. Fhe-��!189519. be submitted in accordance with tiniefianies and pro year beginning on or after January 1,2007,but not less than the minimum SEC.6.7. Section 85305 of the Government Code is repealed. (4) For a statewide candidate othei titan a candidate forGover tax specified in Section 23153. 85305. A candidate for elective state offi�e or corn...Ottee eentrolle ot the State Board of Equalization, four million dollars ($4,000,000 (b) Notwithstandi Seet'_-V 8-8-0-0-1 this code (2) Except as provided in paragraph(l),for taxable years beginning by on or after January 1,2007,the tax imposed under this section shall be.a othei candidate the primary election and six million dollars ($6,000,000) 'in the general that candidate rnay not inake any contribution to M or subdivision (e) of Seetiort 9084 of the Elections,-6� tax according to ormeasured by net income,to be computed at the rate of for elective state office in excess of the lintits set forth in subdivision(31 electron 9.04 percent upon the basis of the net income for that taxable year,but not e€slectien--8539t less than the minimum tax specified in Section 23153. SEC. 7. Section 85306 of the Government Code is amended totendollaisSEC. 9.1. Section 23181 of the. Revenue and Taxation Code is read: election (c) A candidate for State Senate or Assembly who aceepts--the 85306. f Funds o Transferfrom One Controlled Committee to Forpurposessecte.namended to read: Controlled Committee of Same Candidate; Attribution to Specific 23181. Annual tax on banks Contributors;Funds in Possession Before Specified Dates ve, (a) Except as otherwise provided-herein, an annual tax is hereby jidate inay transfe. campaign fu.rids front one control! subdivision(b)of S-ection-HOt'- any reference to an-- of the candidate. The imposed upon every bank doing business within the limits of this state according to or measured by its net income,upon the basis of its net income • i -e made by a political nine candidate. Contributions transferred shallattribut1 ' of a candidate njay net be buted to the for the next preceding income year at the rate provided under Section° fiLSt­_00f1L_ftCe0U1*iug expenditures set forth in this section. the sample ballot. 23186. c0liffibutors using a"last in, first out"ot "fitst b SEC.8.10. Section 85702 of the Government Code is repealed. (b) If a bank commences to do business and ceases doing business . SEC.8.4. Section 85401 of the Government Code is repealed. . i � G ,:, �_ � a ronttibutions front the same conttibutot njaynot exceed the linlitsset forthll 85702. icer cQuuidat � to v°,i in the same taxable year,the tax for such taxable.year shall be according in ee -n --- to or measured by its net income for such year,at the rate provided under (b) Notwithstandhig subdivision(a), a (a)A candidate for electivestatement of ace th in Section 85400 at the tirne lie ot she files the staterrient of __'__-Mitt __elected state officer or candidate � Section 23186. state'office, other than a candidate for statewide elective office, whointe (c) With respect to a bank,other than a bank described in subdivision possesses campaign funds on January 1,2001,may use those funds to seekecified in (b),which ceases doing business after December 31, 1972,the tax for the 1 -_I__t_A state _C elective office without attributing the funds to specific contributors. set -- taxable year of cessation shall be: change his of 11',statelmen. (e) Notwithstanding ' " " (b)A candidate for statewideth in Section 8020 oFthe Elections etion of voluntary expenditure SEC.9. Section 23151 of the Revenue and Taxation Code is amended (1) According to or measured by its net income for the next preceding elective office who possesses campaign funds on November 6,2002,mayof to read: income year,to be computed at the rate prescribed in Section 23186,plus site has not exceeded the voluntary ex endittrie limits. ritay use those funds to seek elective office without attributing the funds to not change hi 23151. Imposition ofprivilege tax;Rates (2) According to'or measured by its net income for the income year Text of Proposed Laws 1 185 184 1 Text of Proposed Laws*** * * / TEXT OF PROPOSED LAWS * * (PROPOSITION. 89 CONTINUED) * * TEXT OF PROPOSED LAWS during which the bank ceased doing business,to be computed at the rate than the minimum tax specified in Section 23153. (e)(1) In the case of a corporation that is an "S corporation" for Reform Act of 1974 as amended and all of its provisions that do not conflict prescribed in Section 23186. (2) Except as provided in paragraph 1 ,for taxable ears beginning F purposes of this part for its first taxable year for which it has in effect a valid with this chapter shall apply to the provisions of this chapter. P P P g P O Y g e federal S election,there shall be allowed as a deduction in determining(d) In the case of a bank which ceased doing business before January on or after January 1, 2000,the tax imposed under this section shall be g SEC. 13' Severability 11 1973,but dissolves-or withdraws on such date or thereafter,the tax for the a tax accordingto or measured b net income, to be computed at the that corporation's"subchapter C.earnings and profits"at the close of any Y P (a) The provisions of this act are severable. If any provision or taxable year of dissolution or withdrawal shall be according to or measured rate provided under Section 23186 upon the basis of the net income for taxable year the amount of any consent dividend(as provided in paragraph portion of provision of this act or the application of any provision of b its net income for the income year during which the bank ceased doing that taxable year,but not less than the minimum tax s ecified,in Section (2))paid after the close of that taxable year. y� y g g Y P this act to any person or circumstance is held to be invalid by a court of � business,unless such income has previously been included in the measure 23153. (2) In the event there is a determination that a corporation described competent jurisdiction,that invalidity shall not affect other provisions or of tax for any taxable year,to be computed at the rate prescribed under (d)(1) For the first taxable year beginning on or after January 1, in paragraph(1)has"subchapter C earnings and profits"at the close of applications of the act that can be given effect without the invalid provision Section 23186 for the taxable year of dissolution or withdrawal. 2007, the tax imposed under this section shall be the sum of both of the any taxable year,that corporation shall be entitled to distribute a consent or application. e Commencing with income ears endin in 1980,ever bank shall following: dividend to its shareholders.The amount of the consent dividend may not O g y g y f g (b) In adopting this measure,the People specifically declare that the pay to the state a minimum tax(determined in accordance with Section (A) A tax according to or measured by net income, to be computed exceed the difference between the corporation's"subchapter C earnings provision of this act adding Section 91139 to the the Government Code shall 23153)or the measured tax imposed on its income,whichever is greater. and profits"determined under subdivision(d)at the close of the taxable P g at the rate of 11.04 percent upon the basis of the net income for the next be severable from the remainder of this act, and the People specifically For the first taxable' ear beginning on or after January 1, precedingincome year, but not less than the minimum tax specified in year with respect to which the determination is made and the corporation's declare their desire and intent to enact the remainder of this act even if that (�O Y g g Y y subchapter C earnings and profits" for federal income-tax purposes at 2000,the tax imposed under this section shall be the sum of both of the Section 23153. provision were not to be given full or partial effect.The People recognize the same date. A consent dividend must be paid within 90 days of the that a Montana law prohibiting corporate contributions or expenditures following: (B) A tax according to or measured by net income,to be computed date of the determination that the corporation has"subcha ter C earnings P g P P (A) A tax according to or measured by net income,to be computed at the.rate of 11.04 percent upon the basis of the net income for the first and profits." For this purpose, the date of a determination means the m connection with a ballot measure election was invalidated in 2000 by a at the rate provided under Section 23186 upon the basis of the net income 'taxable year beginning on or after January 1, 2007, but not less than the effective date of a closing agreement pursuant to Section 19441,the date divided panel of the Ninth Circuit Court of Appeals in Montana Chamber for the next p recedin income year,but not less than the minimum tax minimum tax specified in Section 23153. of Commerce v.Argenbright,but believe that the majority opinion in that P g Yan assessment of tax'imposed by this section becomes final,or the date of case incorrectly interpreted relevant decisions of the United States Supreme specified in Section 23153. ,(2) Except as provided in paragraph(1),for taxable years beginning execution by the corporation of an agreement with the Franchise Tax Board B A tax accordingto,or measured b net income,to be computed on or after January 1,2007,the tax imposed under this section shall be a relatin to liability for the tax imposed b this section.For purposes of Part Court in this area and that more recent decisions of the Supreme Court O Y P f y P g Y P Y P P support the People's rationale for limiting corporate campaign spending in at the rate provided under Section 23186 upon the basis of the net income tax according to or measured by net income,to be computed at the rate of 10(commencing with Section 17001),Part 10.2(commencing with Section order to 8liminate the distorting effects of corporate wealth on the electoral for the first taxable year beginning on or after January 1,2000,but not less 11.04 percent upon the basis of the net income for that taxable year,but not 18401), and this part, a corporation must make the election provided in process. Moreover, the People are adopting the prohibitions in this act than the minimum tax specified in Section 23153. less.than the minimum tax specified in Section 23153. Section 1368(e)(3)of the Internal Revenue Code. 2 Except as provided in paragraph 1 for taxable ears beginning SEC. 9.3. Section 23501 of the Revenue and Taxation Code is based upon an evidentiary record and history neof ed ballot measure O p p p g p O, y g• g (3) If a corporation distributes a consent dividend, it shall claim elections that compellingly demonstrates the need for the narrowly tailored' on or after January 1,2000,the tax imposed under this section shall be amended to read: the deduction provided in paragraph (1) by filing a claim therefor with restrictions contained herein. - a tax according to or measured by net income, to be computed at the 23501. Annual tax imposed;Rates the Franchise Tax Board within 120 days of the date of the determination rate provided under Section 23186 upon the basis of the net income for specified in paragraph(2). SEC. 14. Construction and Amendment �- (a) There shall be imposed upon every corporation, other than a P P g P This act shall b�e broadly construed to accomplish its purposes.This that taxable year,but not less than the minimum tax specified in Section y P P p 23153. bank, for each taxable year, a tax at the rate of 7.6 percent upon its net (4) The collection of tax imposed by this section from a corporation act may be amended to further its purposes by a statute,passed in each income derived from sources within this state on or after January 1,1937, described in paragraph(2)shall be stayed for 120 days after the date of house by roll call vote entered in thejournal,two-thirds of the membership (g)(1) For the first taxable year beginning on or after January 1, other than income for any period for which the corporation is subject to the determination specified in paragraph(2).If a claim is filed pursuant to concurring and signed by the Governor,if at least 12 days prior to passage 2007, the tax imposed under this section shall be the sum of both of'the taxation under Chapter 2(commencing with Section 23101),according to paragraph(3),collection of that tax shall be further stayed until the date in each house the bill in its final form has been delivered to the California following: or measured by its net income. „the claim is acted upon by the Franchise Tax Board. Fair Political Practices Commission for distribution to the news media (A) A tax according to or measured by net income, to be computed (b) For calendar or fiscal years ending after June 30, 1973,the rate of (5) If a claim is filed pursuant to paragraph (3), the running of and to every person who has retluested the Commission to send copies at the rate of 11.04 percent upon the basis of the net income for the next tax shall be 9'percent instead of 7.6 percent as provided by subdivision(a). the statute of limitations on the making of assessments and actions for of such bills to him or her.Any such amendment must be consistent with preceding income year, but not less than the minimum tax specified in (c) For calendar or fiscal years ending after December 31, 1979,the collection of the tax imposed by this section shall be suspended for a period the purposes and must further the intent of this act.Notwithstanding this Section 23153. rate of tax shall be the rate specified for those years by Section 23151. of two years after the date of the determination specified in paragraph(2). provision,amendments to adjust for changes in the cost of living may be (B) A tax according to or measured by net income, to be computed SEC.10. Section.24586 is added to the Revenue and Taxation Code, made pursuant to Section 91145. (d) For calendar orfiscal years ending after December 31,2006,the at the rate of 11.04 percent upon the basis of the net income for the first rate of tax shall be the rate specified for those years by Section 23151., to read: SEC. 15. Effective Date x� taxable year beginning on or after January 1, 2007,but not less than the . a The Franchise Tax Board shall annually determine the SEC. 9.4. Section 2381 e of the Revenue and Taxation Code 24586 �is F h T B This act shall become effective immediately upon its approval by the minimum tax specified in Section 23153. amended to read: total amount of the fees generated by increases in the tax rates for tax voters and shall apply to all elections held on or after January 1,2007. (2) Except as provided in paragraph(1),for taxable years beginning k years beginning January 1,2007,and thereafter pursuant to Revenue and 23811. Tax on passive investment income attributable to California SEC. 16. Conflicting Ballot Measures on or after January 1,2007,the tax imposed under this section shall be a Taxation Code Sections 23151,23181,23183,23501,and 23811,and notify sources (a) If a conflict exists between the provisions of this measure and tax according to or measured by net income,to be computed at the rate of _ the Controller of that amount. 11.04 ercent upon the basis o the net income or that taxable ear,but not Except as otherwise provided in this section,there is hereby imposed the provisions of any other measure approved by the-voters at the same P P f f Y less than the minimum tax specified in Section 23153. a tax on passive investment income attributable to California sources, (b) The Controller shall transfer the amount determined under election, the provisions of this measure shall take effect except to the i determined in accordance with the provisions of Section 1375 of the Internal subdivision (a), less the direct, actual costs of the Franchise Rix Board extent that they are in direct and irreconcilable conflict with the provisions SEC. 9.2. Section 23183 of the Revenue and Taxation Code is and the Controller for the collection and administration of funds under Revenue Code,relating to tax imposed on passive investment income,as of such other measure and the other measure receives a greater number of amended to read: to the California , Clean Money F u , modified by this section.For taxable years beginning on or after January this article, established pursuant to affirmative votes. 23183. Financial corporations; Annual tax; Measurement by 1,2007, the tax imP posed on passive investment income shall be increased Section 91133 of the Government Code,for use in funding clean and fair elections or non-federal statewide and state legislative elections. Upon (b) If any provisions of this measure are superseded by the provisions income;Rate r f g P from 1.5 percent to 1.66 percent of taxable net passive investment income of any other conflicting ballot measure approved by the voters and a For taxable' ears beginning before January],2000,an annual tax appropriation by the Legislature,the Controller shall transfer the amount O Y g g Y, � for the next preceding income year for corporations with,gver$50 million receiving a greater number of affirmative votes at the same election,and the is herebyimposed upon ever financial corporation doing business within of reimbursement for direct actual costs incurred by the Franchise Tax P P Y P g dollars in total receipts. conflicting ballot measure is subsequently held to be invalid,the provisions the limits of this state and taxable under the provisions of Section 27 of Board and the Office of the Controller in the administration of this fund. (a) The tax imposed under this section may not be imposed on an of this measure shall be self-executing and shall be given full force of law. Article XIII of the Constitution of this state,for the privilege of exercising "S corporation"that has no excess net passive income for federal income (c) All funds deposited in the California Clean Money Fund shall be its corporate franchises within this state,according to or measured by its allocated, in accordance with Section 91133 of the Government Code, to p tax purposes determined in accordance with Section 1375 of the Internal the Fair Political Practices Commission or disbursement for ur PROPOSITION 70 net income,upon the basis of its net income for the next preceding income f f p poses Revenue Code. and in the manner described in Section 91133 o the Government Code. year at the rate provided under Section 23186. f This initiative measure is submitted to the people in accordance with (b)(1) The rate of tax shall be equal to the rate of tax imposed under P P • • (b) For purposes of this article, the term "financial corporation" (d) This section shall remain in effect so long as Chapter 12 the provisions of Article II,Section 8 of the California Constitution. • • Section 23151 in lieu of Section I1(b)of the Internal Revenue Code. (commencing with Section 91015 o Title 9 o the Government Code,also does not include any corporation,including i wholly owned subsidiary of g ) f f This initiative measure expressly amends the California Constitution a bank or bank holding company,if the principal business activity of such (2) In the case of an "S corporation" that is also a financial known as the California Clean Money and Fair Elections Act of 2006, gP P y by amending a section thereof-,therefore,new provisions proposed to be corporation,the rate of tax specified in paragraph(I)shall be increased by requires the establishment and maintenance o the California Clean entity consists of leasing tangible personal property. f the excess of the rate imposed under Section 23183 over the rate imposed Money Fund. added are printed in italic type to indicate that they are new. (c)(1) For the first taxable year beginning on or after January 1, under Section 23151. S)iC. 11. No reimbursement is required b this act • 2000,the tax imposed under this section shall be the sum of both of the q Y pursuant to PROPOSED LAW • following: (c) Section 1375(c)(1) of the Internal Revenue Code, relating to Section 6 of Article XIII B of the California Constitution because the credits,is modified to provide that the tax imposed under subdivision(a) only costs that may be incurred by a local agency or school district will (A) A tax according to or measured by net income,to be computed SECTION 1. STATEMENT OF FINDINGS may not be reduced by any credits allowed under this part. be incurred because this act creates a new crime or infraction,eliminates at the rate provided under Section 23186 upon the basis of the net income- (d) The term"subchapter C earnings and profits"or"accumulated a crime or infraction, or changes the penalty for a crime or infraction, (a) The California Constitution provides that no person shall be' for the next preceding income year, but not less than the minimum tax dived of t without earnings and profits"as used in Section 1375 of the Internal Revenue Code within the meaning of Section 17556 of the Government Code,or changes deprived property wut due process of law and allows government specified in Section 23153. pr shall mean the "subchapter C earnings and profits" of the corporation the definition of a crime within the meaning of Section 6 of Article XIII B to take or damage private operty only for a public use and only after (B) A tax according to or measured by net income,to be computed payment to the property owner of just compensation. attributable to California sources determined under this part,modified as of the California Constitution. at the rate provided under Section 23186 upon the basis of the net income provided in subdivision(e). SEC. 12. This chapter shall be deemed to amend the Political (b) Despite these constitutional protections, state and local for the-first taxable year beginning on or after January 1,2000,but not less 186 1 Text of Proposed Laws*** ***Text of Proposed Laws 1 187 TEXT OF PROPOSED LAWS * yk (PROPOSITION 90 CONTINUED *TEXT OF PROPOSED LAWS governments have undermined private property rights through an excessive be the probable amount of just compensation. pursuant to subdivision (a) of Section 10 of Article II of the California use of eminent domain power and the regulation of private property for (b) For purposes of applying this section.. Constitution. purposes unrelated to public health and safety. (1) "Public use"shall have a distinct and more narrow meaning than The provisions of this section shall apply immediately to any eminent (c) Neither the federal nor the California courts have protected the term "public purpose its limiting effect prohibits takings expected to domain proceeding by a public agency in which there has been no final the full scope of private property rights found in the state constitution. result in transfers to nongovernmental owners on economic development adjudication. The courts have allowed local governments to exercise eminent domain or tax revenue enhancement grounds,or for any other actual uses that are Other than eminent domain powers, the provisions added to this- powers to advance private economic interests in the face of protests inot public in fact,even though these uses may serve otherwise legitimate section shall not apply to any statute, charter provision, ordinance, from affected homeowners and neighborhood groups. The courts have public purposes. resolution,law,rule or regulation in " effect on the date of enactment that not required government to pay compensation to property owners when (2) Public use shall not include the director.indirect transfer of any results in substantial economic loss to private property. Any statute, enacting statutes,charter provisions,ordinances,resolutions,laws,rules possessory interest in property taken in an eminent domain proceeding charter provision,ordinance,resolution, law,rule or regulation in effect or regulations not related to public health and safety that reduce the value from one private party to another private party unless that transfer on the date of enactment that is amended after the date of enactment shall of private property. proceeds pursuant to a government assignment,contract or arrangement continue to be exempt from the provisions added to this section provided (d) As currently structured,thejudicial process in California available with a private entity whereby the private entity performs a public use that the amendment both serves to promote the original policy of the statute, to property owners to pursue property rights claims is cumbersome and project. In all eminent.domain actions, the government shall have the charter provision,ordinance,resolution,law,rule or regulation and does costly. burden to prove public use. not significantly broaden the scope of application of the statute, charter SEC.2. STATEMENT OF PURPOSE (3) Unpublished eminent domain judicial opinions or orders shall provision, ordinance,resolution, law, rule or regulation being amended. (a) The power of eminent domain available to government in be null and void. The governmental entity making the amendment shall make a declaration California shall be limited to projects of public use.Examples of public use (4) In all eminent domain actions, prior to the government's contemporaneously with enactment of the amendment that the amendment projects include,but are not limited to,road construction,the creation of occupancy, a property owner shall be given copies of all appraisals by promotes the original policy of the statute,charter provision,ordinance, public parks,the creation of public facilities,land-use planning,property the government and shall be entitled,at the property owner's election,to a resolution, law,rule or regulation and does not significantly broaden its zoning,and actions to preserve the public health and safety. separate and distinct determination by a superior court jury,as to whether scope of application.The question of whether an amendment significantly (b) Public use projects that the government assigns, contracts or the taking is actually for a public use. broadens the scope of application is subject to judicial review. otherwise arranges for private entities to perform shall retain the power (5) If a public use is determined, the taken or damaged property J of eminent domain. Examples of public use projects that private entities shall be valued at its highest and best use without considering any future perform include,but are not'limited to,�the construction and operation of dedication requirements imposed by the government.If private property is private toll roads and privately-owned prison facilities. taken for any proprietary governmental purpose, then the property shall (c) Whenever government takes or damages .private property be valued at the use to which the government intends to put the property,if for a public use, the owner of any affected property shall receive just such use results in a higher value for the land taken. compensation for the property taken or damaged. Just compensation (6) In all eminent domain actions, "just compensation"shall be shall be set at fair market value for property takeb and diminution of fair defined as that sum of money necessary to place the property owner in market value for property damaged.Whenever a property owner and the the same position monetarily, without any governmental offsets,as if the i government cannot agree on fair compensation,the California courts shall property had never been taken. `Just compensation"shall include, but is provide through a jury trial a fair and timely process for the settlement of not limited to,compounded interest and all reasonable costs and expenses disputes. actually incurred. (d) This constitutional amendment shall apply prospectively. Its (7) In all eminent domain actions, "fair market" value shall be terms shall apply to any eminent domain proceeding brought by a public defined as the highest price the property would bring on the open market. agency not yet subject to a final adjudication.No statute,charter provision, (8) Except when taken to protect public health and safety, "damage" ordinance, resolution, law, rule or regulation in effect on the date of to private property includes government actions that result in substantial enactment that results or has resulted in a substantial loss to the value of economic loss to private property.Examples of substantial economic loss private property shall be subject to the new provisions of Section 19 of include, but are not limited to, the downzoning of private property, the Article 1. elimination of any access to private property, and limitations on the use (e) Therefore,the people of the state of California hereby.enact"The ofprivate air space. "Government action"shall mean any statute,charter Protect Our Homes Act" provision,ordinance,resolution,law,rule or regulation. SEC 3. Section. 19 of Article I of the California Constitution is (9) A property owner shall not be liable to the government for amended to read: attorney fees or costs in any eminent domain action. SEC. 19. (a)(I) Private property may be taken or damaged only (10) For allprovisions contained in this section,,"government"shall for a stated public use and only when just compensation,ascertained by be defined as the State of California, its political subdivisions, agencies, a jury unless waived,has first been paid to,or into court for,the owner. any public or private agentacting on their behalf,and any public or private t Private property may not be taken or damaged for private use. entity that has the power of eminent domain. (2),Property taken by eminent domain shall be owned and occupied (c) Nothing in this section shall prohibit the California Public Utilities by the condemnor,or another governmental agency utilizing the property Commission from regulating public utility.rates. for the stated public use by agreement with the condemnor, or may be (d) Nothing in this section shall restrict administrative powers to take leased to entities that are regulated by the Public Utilities Commission or or damage private property under a declared state of emergency. any other entity that the government assigns,contracts or arranges with to (e) Nothing in this section shall prohibit the use of condemnation perform a public use project.All property that is taken by eminent domain shall be used only for the stated public use.• powers to abate nuisances such as blight,obscenity,pornography,hazardous 3 ! d ro ert taken through eminent domain a ter the a ective substances or environmental conditions,provided those condemnations are O f yP p y g f ff limited to abatement of specific conditions on speck parcels. date of this subdivision•ceases to be used for the stated public use, the SEC.4. IMPLEMENTATION AND AMENDMENT former owner of the property or a beneficiary or an heir,if a beneficiary or heir has been designatedfor this purpose,shall have the right to reacquire This section shall be self-executing.The Legislature may adopt laws the property for the fair market value of the property before the property to further the purposes of this section and aid in its implementation.No may be otherwise sold or transferred. Notwithstanding subdivision (a) amendment to this section may be made except by a vote of the people • of Section 2 of Article XIII A, upon reacquisition the property shall be pursuant to Article II or Article XVIII of the California Constitution. appraised by the assessor for purposes of property taxation at its base SEC.5. SEVERABILITY year value, with any authorized adjustments,as had been last determined The provisions of this section are severable.If any provision of this in accordance with ArticleX111A at the time the property was acquired by section or its application is held invalid,that finding shall not affect other the condemnor. provisions or applications that can be given effect without the invalid (4) The Legislature may provide for possession by the condemnor provision or application. following commencement of eminent domain proceedings upon deposit in SEC.6. EFFECTIVE DATE court and prompt release to the owner of money determined by the court to This section shall become effective on the day following the election 188 1 Text of Proposed Laws*** ***Text of Proposed Laws 1 189 I * * VOTER BILL OF. RIGHTS * * THE PROCESS OF VOTING ABSENTEE 1. You have the right to cast a ballot if you are a valid 6. You have the right to receive assistance in registered voter. casting your ballot, if you are unable to vote Any registered voter may vote by absentee ballot. Rather than go to the polls to cast a ballot on A valid registered voter means a United States citizen Without assistance. Election Day, you may apply for an absentee ballot, which you will need to complete and return to who is a resident in this state, who is'at least 18 ears y 7. You have the right to return 'a completed your elections official. of age and not in prison or on parole for conviction absentee ballot to any precinct in the county. felony, and who is registered to vote at his or her To apply for an absentee ballot,you may use the application printed on your Sample Ballot,which you current r current residence address. 8. You have the right to election materials in another - will receive prior to every election, or apply in writing to your county elections official.You will need elections official between 29 days 7 days 2. You have the right to cast a provisional ballot if language, if, there are'sufficient residents in to submit a completed application or letter to your county Y y your name is not listed on the voting rolls. your precinct to warrant production. before the election.The application or letter must contain: 3.'You You have the right to cast a ballot if you are resent 9. You have the right to ask questions about 1 . your name and residence address as stated on your registration card; g Y p and in line at the polling place prior to the close of election procedures and observe the elections 2. the address to which the absentee ballot should be sent (if different than-your registered the polls. .process. address); You have the right to ask questions of the precinct 4. You have the right to cast a secret ballot free from 3. the name and date of the election in which you would like to vote absentee; and inti midation. board and election officials regarding election procedures and to receive an answer or be directed 4. the date and your signature. to the appropriate official for an answer.However,if Once our application is. rocess d b our count elections official,the proper ballot type/style will be 5. You have the right to receive a new ballot if,prior to y pp p Y Y Y casting your ballot,you believe you made a mistake. persistent questioning disrupts the execution of their sent to you.After you have voted, insert your ballot in the envelope provided for this purpose, making duties,the board or election officials may discontinue sure you complete all required information on the envelope.You may return your voted absentee ballot If at any time before you finally cast your ballot,you feel responding to questions. you have made a mistake,you have the right to exchange 10.You have the right to report any illegal or by t the spoiled ballot for a new ballot.Absentee voters may fraudulent activity to a local elections official or to 1 . mailing it to your county elections official; also request and receive a new ballot if they return their the Secretary of State's Office. 2. returning it in person to a polling place or elections office within your county on Election spoiled ballot an elections official prior to the closing of the polls on.c election day. •, Day; or 3. authorizing a legally allowable third party(relative or person residing in the same household - as you)to return the ballot on your behalf. If you believe you have been denied any of these rights, or if you are aware of any election fraud Regardless of how the ballot is returned, it MUST be received by the time polls close (8 p.m.) on or misconduct,-please call the Secretary of State's confidential toll-free Election Day. Late-arriving absentee ballots are not counted.' Voter Protection Hotline at 1-800-345-VOTE (8683). Once your voted absentee ballot is received by your county elections official, your signature on the absentee ballot return envelope will be compared to the signature on your voter registration card to Information on your voter registration affidavit will be used by elections officials to send you official information on the determine that you are the authorized voter.To preserve the secrecy of your ballot, the ballot will then voting process, such as the location of your polling place and the issues and candidates that will appear on the ballot. be separated from the envelope and the ballot becomes as anonymous and secret-as any other ballot. Commercial use of voter registration information is prohibited by law and is a misdemeanor.Voter information may be provided to a candidate for office,a ballot measure committee,or other person for election,scholarly,journalistic, Apply to Be a Permanent Vote-By-Mail Voter: political, or governmental purposes, as determined by the Secretary of State. Driver's license and social security numbers,or your signature as shown on your voter registration card,cannot be released for these purposes.If you have Any voter may apply for PERMANENT ABSENT VOTER STATUS (Elections Code § 3201).These any questions about the use of voter information or wish to report suspected misuse of such information,please call voters are automatically sent avote-by-mail ballot for every election without having to fill out an the Secretary of State's Voter Protection and Assistance Hotline at 1-800-345-VOTE. application every time. Please contact,your county elections official to apply to become a permanent vote-by-mail voter if you wish to receive vote-by-mail ballots for all future elections. To find outJ Certain voters facing life-threatening situations may qualify for confidential voter status. For more information, who your county elections official is, go online at www.ss.ca.gov/elections/elections_d.htm to see a please contact the Secretary of State's Safe At Home program or visit the Secretary 'of State's Web site at list of contact information for all county elections officials. www.ss.ca.gov I Voter Bill of Rights 1191 1901 Process of Voting Absentee*** _7.1 Secretary of State PRSRTSTD 1500 1 ith Street U.S.PosTACE. Sacramento,CA 95814 PAID I SECRETARY OF STATE A$g APostal 9 1 GENERAL ELECTION For additional copies of the Voter Information Guide in any of the following languages, please call: Official Voter Information Guide - Remember to Vote! English: 1-800-345-VOTE (8683) Tuesday, November 7, 2006 Espanol/Spanish: 1-800-232-VOTA (8682) Polls are open from 7 a.m. to 8 p.m. H a/lapanese: l-800-339-2865 Viet ngfi/Vietnamese: 1-800-339-8163 October 9 Tagalog/Tagalog: 1-800-339-2957 First day to apply for an absentee ballot by mail. '$':)C/Chinese: 1-800-339-2857 • October 23 '}-q'�/Korean: 1-866-575-1558 Last day to register to vote. TOO: 1-800-833-8683 October 31 In an effort to reduce election costs,the State Legislature has Last day that county elections officials will accept any voter's application for an absentee ballot. authorized the State and counties to mail only one guide to addresses where more than one voter with the same surname November 1 resides. You may obtain additional copies by contacting your Last day to apply for an absentee.ballot in person at the office of the county elections official. county elections official or by calling 1-800-345-VOTE. • � ;tea 1 t e r g u i I e . s s . c . g 1 . 4