HomeMy WebLinkAbout06-07-2006 CA Voter Information Guide(r
BnuCr McPHTRSON I srcnrrnRy oF srArr I srnrr oF cALtFoRNTA
ELECTIONS I r5oollthStreet,5thfloor,Sacramento,CA 95814 | tel96.657.2166 lfax916.6y4zt4 lwww.ss.ca.gov
To Whom lt May Concern
We are pleased to provide the California Voter lnformation Guide
for the June 6, 2006 Primary Election, which has been prepared
by this office to assist California voters in determining how to cast
their votes on statewide ballot measures and candidates on
Election Day. These guides are being distributed to you as
required by Section 9096 of the California Elections Code.
lf you would like additional copies of the guide, please contact the
Secretary of State's Elections Division at (91 6) 657-2166.
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CALIFORNIA
GENERAL ELECTION
Tuesday,
NOVEMBER 7, zgtl6
CERTTFICATE OF CORRECTNESS
l, 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 Caiifirnia at,theiGeneral Election to
be held throughout the State on November 7,200i,6, 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
Secretary of State
0fficial Voter lnformation Guide
'l
FO
o
"t SECRETARY OF STATE
Dear California Voter,
There is no greater right than the right to vote - to participate in the electoral process,
to elect responsible leaders, .and to make your voice heard. As, the general election nears,
I urge you to exercise this fundamental right on Tuesday, November 7th.
In this Voter Information Guide, you will find information to assist you in making
informed choices on Election Day. Impartial analyses, arguments in favor and against
thirteen measures, statements from candidates, and other useful information is presented
here as your one-stop educational point of reference. These materials are also available
on the Secretary of State's website at www.ss.ca.gov. The website also provides a link to
campaign finance disclosure information (hup://cal-access.ss.ca.gov) so you can learn who
is funding each of the campaigns
To prepare for Election Day, please carefully review the material in this Voter
Information Cuide. As a registered voter, you have the opportunity to further stretrgthen
the foundation of our democracy by exercising your right to vote.
Please let my office or your local elections official know if you have questioni, ideas,
or concerns about registering to vote or voting. To contact the office ofthe Secretary of
State, call our toll-free number-l-800-345-VOTE or visit our website atwww.ss.ca.gov to
find contact information for your local electiond official.
Thank you for being a part of California's future by casting your vote in the November 7th
General Election.
.t
TABTE OF CONTENTS *** PAGE
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QIICK REFERENCE PULI-OUT GUIDE/BAILOT MEASURE SUMMAzuES 5
PROPOSITIONS
fr{ fransportation Funding Protection. legislative OonstitutionalAmendment. 14
1B Highway Safety, Traffic Reduction, Air Ouality, and Port Security Bond Act of 2006. 18
fQ nousing and Emergency Shelter Trust Fund Act of 2006. 24
lp XinOergarten-University Public Education Facilities Bond Act of 2006. 30
1E Disaster Preparbdness and Flood Prevention Bond Act of 2006. 36
o) Sex 0tfenders. Sexually Violent Predators. 42OJ Punishment, Residence Restrictions and Monitoring.'lnitiative Statute.
o , Water Ouality, Safety and Supply. Flood Control. Natural Resource Protection. 48Oa Park lmprovements. Bonds. lnitiative Statute.
o tr Waiting Period and Parental Notification Before Termination of Minor's Pregnancy. 54oJ Initiative Constitutional Amendment.
$$ fax on Cigarettes. lnitiative Gonstitutional Amendment and Statute. 60
o,, Altelnative Energy. Research, Production, Incentives. Tax on California 0il Producers. 70o I lnitiative Constitutional Amendment and Statute.
$ $ fOucation Funding. Real Property Parcel Tax. Initiative Constitutional Amendment and Statute. 76
oo Political Campaigns. Public Financing. Gorporate Tax lncrease. Campaign Gontribution and A2(l / Expenditure Limits. lnitiative Statute.
!Q eovernment Acquisition, Regulation of private Property. Initiative Gonstitutional Amendment. 90
AN OVERVIEW OF STATE BOND DEBT 96
IIST OF CANDIDATES FOR STATEWIDE ELECTIVE OFFICE 98
CANDIDATE STATEMENTS 100
BOARD OF EQIALIZATION DISTRICTS 112
IUSTICES OF THE SUPREME AND APELLATE COURTS 113
TEXT OF PROPOSED IAWS 114
VOTER BIIL OF RIGi-ITS 191
INFORMATION PAGES. Your Vote Makes A Difference...
o Ballot Measures Defined..........
o The Process of Voting Absenteb
...4
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190
Should any candidate or ballot measure information be incorrect or change after the printing of this Voter
lnformation Guide, please rely on the information provided in the Sample Ballot provided by your county
elections official.
* * * Table ol Contents I 3
YOURVOTE MAKES A DTFFERENCE! * * *
FOLLOW THESE 3 SIMPTE STEPS OF VOTING
REGISTER * * *
If you are a United States citizen, a resident of California, not in prison or on parole for conviction
of a felony, and will be 18 years of age by November 7 ,2006, you can register to vote. To register to
vote, you can:
' Call or visityour county elections office.
. Call the Secretary of State's Toll-Free Voter Hotline at 1-800-345-VOTE.
' Register s nlineat www.ss.ca.gov/elections/elections-vr.htm
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 Scimple 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
how to use the voting equipment in your county.
. The StateVoter Information Guideprovides the information you need to know about statewide
, candidates and ballot measures. An audio version is available for the visually impaired
by calling 1-800-345-VOTE. The State Voter Information Guide is also available online at
www.voterguide. ss.ca. gov
. 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-acce ss. s s. ca. gov for more information.
. Thlk with Family and Friends because the decisions you make in the voting booth are important
and help keep our country strong.
VOTE ***
Election Day is Tiresday, November 712006. The polls are open from 7:00 a.m. to 8:00 p.m.
. FindVour Polling Place-qhe location of your polling place is provided on the back of your
county sdmple ballot. You can also find your polling place by calling your county elections
office or online at http://www.ss.ca.gov/elections/elections-ppl.htm.
. Tb Vote by Mait-Your county sample ballot contains an application for an "absentee ballot."
In order to receive your absentee ballot in time to vote, this application must be received
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 8j00 p.m. on Election Day,
November 7,2006.
4 I Your vote Makes A Difference! * * *
CALIFORNIA
IJICKREFERENCE
PULL-OUT GUTDE
Tuesday, N0VEMBER 7, 2006
GENERAL'ELECTION
This pirll-out reference guide contains summary and coniaet'infsrmation
for each state proposition 4ppearing on the November 7, 2006 ballot.
PULL OUT THIS GUIDE AND
TAKE ITWITHYOIJ
TO THE POLLS!
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OFFICTAT VOTE INFORMATION GUIDE
Visit our website at www.ss.Ga.gov
* * * ouick Reference Pull-0ut Guide I 5
BATLOT MEASURE SUMMARY * * *
PROP Transportation Funding Protection.
1A
Legislative Constitutional Amendment.1B
PROP HighrVay Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006.
SUMMARY Put on the Ballot by the L,egislature SUMMARY Put on the Ballot by the Legislature
Protects transportation funding for traffic congestion relief
projects, safety improvements, and local streets and roads.
Prohibits the state sales tax on motor vehicle fuels from being
used for any purpose other than transportation improvements.
Authorizes loans pf these funds only in the case of severe
state fiscal hardship. Requires loans ofrevenues from states
sales tax on motor vehicle fuels to be fully repaid within the
three years. Restricts loans to nci more than twice in any
10-year period. Fiscal Impact: No revenue effect or cost
effects. Increases stability offunding to transportation in2007
and thereafter.
This act makes safety improvements and repairs to state
highways, upgr4des freeways to reduce congestion, repairs
local streets and roads, upgrades highways along major
transportdtion corridors, improves seismic safety of local
bridges, expands public transit, helps complete the state's
network of car pool lanes, reduces air pollution, and
improves antiterrorism security at shipping ports by
providing for a bond issue not to exceed nineteen billion
nine hundred twenty-five million dollars ($ 19,925,000,000).
Fiscal:Impact: State gosts of approximately $38.9 billion
over 30 years to repay bonds. Additional unknown state and
'local operations and maintenance costs.
WHAT YOURVOTE MEANS
WHAT YOURVOTE MEANS
YES
A YES vote on this
measure means: The State
Constitution would specify
additional limitations on the
state's ability to suspend the
transfer ofgasoline sales tax
revenues from the General
.Fund to transportation. In
addition, all past suspensions
would be required to be '
repaid by June 30, 20l6,at .
a specified minimum rate of
repayment each yeai.
NO
A NO vote on this
measure means: The
State Constitution would
not further limit the
state's ability to su3pend
the transfer of gasbline
sales tax revenues. State
law, instead of the State
Constitution, would specify
when past suspensions
would be repaid.
YES
A YES vote on this measure
means: The state could
sell $19.9 billion in general
obligation bonds, for state
and local transportation
improvement projects
rto relieve congestion,
improve the movement
of goods, improve air
quality, and enhance the
safety and security ofthe
transportation system.
NO
A NO vote on this measure
means; The state could
not sell $19.9 billion in
general obligation bonds,
for these purposes.
ARGUMENTSARGUMENTS
PRO
YES on 1A dedicates
taxes we alreadypay atlhe
pump for hansportation
improvements like building
roads, congestion relief; and
safety repairs. 1A closes a
loophole in the law to
prevent politicians from
spending gas taxes on other
programs. Rebuild California:
YES on lA-safer roads,
reduced congestion,
www. Re a d F orY ours e lf. o rg.
coN
Vote "NO" on Proposition
I A ! Keep Education, health
care, and disaster relief
our State's top priorities.
Inhard economic times,
"autopilot" budgeting causes
massive unnecessary cuts
to schools, fi refi ghters,
trauma centers, and health
care. The Governor and
Legislature must have
flexibility to meet the
needs of Cali fornians. Vote
"NO" on Proposition IA.
PRO
YES on lB jump-starts traffic
relief, mass transit, and safety
improvements in every corner
of the state without raising
taxes. lB builds new roads and
transportation improvement
projects that enhance mobility
and protect our economic
future. Rebuild California:
YES on I B-safer roads,
reduced congestion, and a
strong economy,
www. R e a d F o r Iours e lf. o r g.
coN
Caiifornia cannot afford
to continue borrowing its
way into a false sense of
economic security. More
borrowiqg means worsening'
budget deficits. A no vote
will force the Legislature '
to focus on paying for
our transportation needs
with existing,funds in a
fi scally respohsible mannef.
Please.vote NO on lB.
FORADDTTIONAT I N FORMATION
FORADDITIONAT INFORMATION FOR,
Let's Rebuild California
1127 llthStreet, Suite 950
Sacramento, CA 95814
(916) 448-1401
info @readforyourself.org
www,readforyourself.org
AGAINST
California Taxpayer
Protection Committee
Thomas N. Hudson,
'Executive Director
9971 Base Line Road
Elverta, CA95626-9411
(el6) e91-9300
info @protecttaxpayers.com
www.protecttaxpayers.com
FOR
Let's Rebuild California
ll27 llth Street, Suite950
Sacramento, CA 95814
(el6) 448-r401
info @readforyourself.org
www.readforyourself.org,
AGAINST
Jackie Goldberg, Chair
Assembly Education
Committee
6 I Ballot Miasure Summary * * *
* * * BALTOT MEASURE SUMMARY
PROP Housins and
lC Actorzloe.
Emergency Shelter Trust Fund PROP Kindergarten-University Pubtic Education
Facilities Bond Act'of 2006.I
SUMMARY Put on the'Ballot by the Legislature SUMMARY Put on the Ballot the Legislature
This ten billion four hundred sixteen million dollar
($10y'16,000,000) bond issue will provide needed funding
to relieve public sctrool overcrowding and to rgpair older
schools. It will improve earthquake safety and fund vocational
educational facilities in public schools. Bond funds must be
spent according to strict accountability measures. Funds will
also be used to repair and upgrade.existing public college
and university buildings aird to build new classrooms to
accommodate the growing studentEnrollment in the California
Community Colleges, the University of California, and the
California State University. Fiscal Impact: State costs of about
$20.3 billion to pay off both the principal ($10.4 billion) and
interest ($9.9 billion) on the bonds. Payments of about $680
million per year.
For the purpose of providing shelters for battered women and
their children, clean and safe housing for low-income senior
citizens; homeownership a'ssistance for the disabled, military
veterans, and working families; and repairs and accessibility
improvements to apartment for families and disabled citizens,
the state shall issue bonds totaling two billion eight hundred
. fifty million dollars ($2,850,000,000) paid from existing
state funds at an average annual cost oftwo hundred and four
million dolla-rs ($204000,000) per year over the 30 year life
of the bonds. Reqriifes reporting and publication of annual
independent audited reports showing use of funds, and.limits
administration and overhead costs.
WHAT YQURVOTE MEANS WHAT YOURVOTE MEANS
YES
A YES'vote on this measure
mealls: The state could sell
$2.85 billion in general
obligation bonds to support
a variety ofhousing and
development programs.
NO
A NO vote on this meaiure
means: The state could
not sell $2:85 billion in
general obligation bonds
for these purposes.
YES
A YES vote on this measure
means: The state could
sell $i0.4 billion in
general obligation bonds
for education facilities
($7.3 billion for K-12 school
tucilities and $3.1 billion for
highgr education facilities).
NO
A NO vote 0n this measure
means: The stale codld
not sell $10.4 billion in
general obligation bonds
for these purposes.
a
ARGUMENTS ARGUMENTS
PRO
YES.on Proposition lC
provides emirgency shelters
for battered women, affordable
homes for seniors and former
foster youths, and shelters' with social services for
homeless families without
raising taxes. Rebuild.
California:'Join Habitat for
Humanrty, AARB and CA
- Partnership to End Domestic
Violonce, vote Yes on lC.
coN
Vote i'no" pn Proposition
lC. Almost $3 billion in
new government debt and
big bureaucracy won't .
make California housing
affordable. Proposition lC .
gives your money to a select
few chosen by bureaucrats
then sticks every California
family irf four with $600
ofdebt and interest. Vote
"no" on irresponsible debt.
PRO
Yes on I D makes our school
buildings eaithquake-safe
and reduces overcrowdino
i" .t
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t.",n t' f";;trd.ffi.
ftupdates schools with new
technology, builds vocational
education facilities, and
funds our rapidly growing
community college system.
Rebuild California: YES on
lD-an investment in our
children is an investment
in California's future.
coN
We should make school
construction a top priority
for cuqrent spending.
We cannot afford
$10,416,000,000 in new debt,
which today's schoolchildren
will stillbe paying back
long after their own children
have graduated. Most
schools will receive nothing
from this bond. Fairness'
requires local districts to
pay for local projects.
FORAD DTTIONAL INFORMATION FOR ADDITIONAL INFORMATION
FOR
Let',s Rebuild california
ll27 llrhstreet, Suite 950
Sacramento, CA 95814'
(916) 448-1401
info@readforyourself.org
www.readforyoursel f.org
AGAINST
Assemblyman Chuck DeVore
California State Assembly
4790Irvine Blvd.; Ste. 105-191
Irvine, C492620
(e16) 991-9300
NoProplC@aol.com
www.NoProplC.com
FOR
Lance Olson
Olson Hagel& Fishburn LLP
555 Capitof Mall#1425
Sacramento, CA 95814
(916) 442-29s2
w ww. readforyoursel f. org
AGAINST
Thomas N. Hudson,
Executive Director
California Taxpayer
Protection Committee
9971 Base Lin.e Road
Elverta, CA95626-9411
(9r6) 991-9300
info @protecttaxpayers.com
www.proteqttaxpayers.com
* * * Ballot Measure Summary I 7
BAITOT M EASURE SUMMARY***
PROP Disastei Preparedness and PROP Sex Offenders. Sexually Violent Predators.
O 2 Punishment, Residence Restrictions and
O J Monitoring. Initiative Statute.1E .Flood Prevdntion Bond Act of 2006.
S Pit on the Ballot by the Legislature SUMM,A.RY Put on the by Petition Signatures
This act rebuilds and repairs California's most vulnerable' flood control structures to protect homes and prevent loss of' life from flood-related disasters, including levee failures, flash
floodg, and mudslides; it protects California's drinking water
supply system by rebuilding delta levees that are vulnerable to
earthquakes and storms; by authofizing a.$4.09 billion dollar
bond act. Fiscal Impact: State costs of approximately $8 billion
over 30 years to repay bonds. Reduction ih local property
tax revenues of potentially up to several million .dollars
annually. Additional unknown state and local operations and
maintenance costs.
WHAT YOURVOTE MEANS
Increases penalties for violent and habitual sex offenders and
child molesters. Prohibits residence near schools and parks.
Requires Global Positioning System monitoring of qegistered
sex offenders. Fiscal Impact: Net state operating costs within ten
years ofup to aoogple'hundredmillion dollars annually; potential
one-time state construction costs up to several hundred million
dollars; unknown net fiscal impact on local governments.
YOUR VOTE MEANS
VES
A YES vote on this measure
means: The state could .
sell about $4.1 billion in
general obligation bonds
to fund floodmanagement
projects, including repairs
and improvements to levees,
weirs, bypasses, and other
flood control facilities' throughout the state.
NO
A NO vote on this measure
means: The state could not
sell about $4.1 billion in
general oQligation bonds
for these purposes.
YES
A YES vote on this measure
means: Some sex offenders
woul.d serve longer prisonand
parole terms. Sex offenders
released from prison wotrld
be monitored with Global
Positioning System (GPS)
devices while orr parole and
for life after discharge from
state supervision. Registered
sex offenders would not be
allowed to reside withih
2,000 feet ofa school or park.
More sex offenders would .
be eligible for commitrnent '
by the courts to state mental'
health facilities for treatment
under the Sexuirlly Violent
Predator (SVP) program.
NO
A NO vote on this measure
means: Current sentencing
and residency laws regarding
sex offenders stay in effect. ,
State and local agencies would
continue to have authority
to monitor sex offenders
with CPS devices while
on parole and probation.
Requirements.for placement
of sex offenders into the SVP.
program would not change.
ARGUMENTS
PRO
Yes on.Proposition lE protects
against floods and helps
ensure an adequate supply
of clean drinking water for
all Calif.ornians. It iepairs
levees and incregses flood
protection. lE also helps
prevent water pollution in our
streams and ocean. Rebuild
California: YES on iE-Clean
Water, Flood Protection; and
Disaster Preparedness.
coN
We cannot afford
$4,090,000,000 in new debt
and higher taxes to pay ii
back. Local projects should'
be funded locally, without
unfair subsidies; This bond
will not provide any new
drinking' water. The repairs
funded by this bond will.
need to be repaired again
,before this bond is repaid.
ARGUMENTS
PRO
YES on Proposition 83-
JESSICA'S LAW. Prop.83
gives police the tools they
need to keep track ofsex
criminals, Prop. 83 stops child
molesters from moving near a
school orpark. Prop.83 keeps
sexual predators in prison
longer. Endorsed by COPS
andVICTIMS-Vote YES
on 83.
coN
Proposition 83 would cost
taxpayers an estimated
$500 million but would not
increase public safety because
it's most restrictivg and
expensive provisions apply to
misdemeanor offenders and
others convicted of minor,
nonviolent offenses. Similar
laws have been tried and have
failed in other states. Vote
"No" on Proposition 83!FORADDITIONAL INFORMATION
F'oR
Let's Rebuild California
ll27 llth Street, Suite 950
Sacramento, CA 95814
(9t6) 448-t401
info @readforyourself.org
www.readforyourselfl org
AGAINST.
Thomas N. Hudson,
Executive Diiector
California Taxpayer
Protection Committee
9971 Base Line Road
Elverta, CA95626-9411
(916) 9e1-e300
info @prote gttaxpayers.com
www.p{otecttaxpayers.com
FOR ADDITIONAL INFORMATION
FOR
Campaign for Child $afety
921 llrh Street, Suite 400
Sacramdnto, CA 95814
info@83YES.com
www.83YES.com
AGAINST
Gail Jones, {dmin. Director
California Attorneys
For Ctiminal Justice
2225 EighIh Street; Suite I 50
Sacramento, CA 95814'
(916) 448-8868
gailj onescacj @ sbcglobal.riet
www.cacJ.org
8 I Ballot Measure Summary * * *
* * * BATLOT MEASURE SUMMARY
PROP Water Quality, Safety and Supply.
O A Flood Control. Natural Resource Protection.
O + Park Improvements. Bonds. Initiative Statute.
PROP Waiting Peliod and Parental Notification
85 Before Termination of Minoi's Pregnancy.
Initiative Constitutional Amendment.'
,SUMMARY Put on the Ballot by Petition Signatures SUMMARY Put on the Ballot by Petition Signatures.
Funds water, flood control, natural resources, park and
conservation projects by authorizing $5,388,000,000 in
general obligation bonds. Emergency drirtking water safety
provisions. Fiscal Impact: State cost of $10.5 billion over
30 years to repay bonds. Reduced local property tax revenues
of several million dollars annually. Unknown state and local
operations and maintenance costs, potentially tens of millions
ofdollars annually.
Amends California Constitution. prohibiting abortion for
unemancipated minor until 48 hours after physician notifies
minor's parent/guardian, except in medical emergency or with
parental waiverl Mandates reporting requirements. Authorizes
monetary damages against physicians for violation. Fiscal
Impact: Potential unknown net state. costs of several million
dollars annirally for health and social services programs,
court administration, and state health agency administration
combined.
WHAT YOURVOTE MEANS WHATYOURVOTE MEANS
YES .
h YE'S lbte on this measure
means: The state could
sell $5.4 billion in general
obligation bonds for safe
drinking water, water
quality, and water supply;
flood control; natural
resource protection; and
park improvements.
NO
A NO vote on this measure
means: The state could
not sell $5.4 billion in
general obligation bonds
for these purposes.
YES
A YES vote on this
measure means: The
State Constitution would
be changed to require
that a physician notify,
with certain exceptions,
a parent or legal guardian
of a pregnant minor at
least 48 hours before
performing an abortion.
NO
A NO vote on this measure
means: Minors would
continue to receive abortion
services to the same extent
ps adults. Physicians
performing abortions for
minors would not be subject
to notifi cation requirements.
ARGUMENTS ARGUMENTS
PRO
Provides clean, safb drinking
water for Califotnia's rapidly -
growing population; supports
vital projects for coastal
protection, water quality, flood
prevention Accountability,
public disclosure, annual
audits, no new taxes. Join
League of Women Voters
of California, Clean Wrter
Action, Nature Consenvancy,
business groups, public health
experts, local w.ater districts
throughout California.
coN
This bond was placed or the
ballot by special interests that
will likely receive taxpayers'
moqeyif the bond passes.
This so-called "water and
flood control bond" has no
funding for dams or water
storage and little funding for
flood Cpntrol. This initiative
would spend billions without
effective oversight.
PRO
PARENTS! Right now anyone
can arrange a secret abortion
for your minor daughter and
you won't even know. Don't
permit your young daughter
to be subjectedto dangerous
m e d i c a I p ro c e du r e s w ithout
your knowledge. Keep her life
and health in your hands and
not those of strangers. I/ofe
YES on 85.
coN
No law can manilate family
communication. Vulnerable
teenagers from abusive,
violent homes can't talk to
their parents, can't navigate
overcrowded courts, and may
resort to dangerous, illegal
abortions. Prop. 85.wont
stop predators, won't protect
teens, and'is the first step in
overturning Roe and banning
all abortions. Vote NO.
FORADDITION AL INFORMATION FOR ONAL INFORMATION
FOR
Fiona Huttbn
Cali,fornians For Clean
Water, Parks and Coastal
Protection/Yes on Prop. 84
13039 Ventura Blvd.
Studio City, CA 91604
(818)784-1222
Fhutton@
RedgateCommunications.com
www.YesonS4.com
AGAINST
Thomas N. Hudson,
Executive Director
California Taxpayer
Protection Committee
9971 Base Line Road
Elverta, C495626-9411
(916) 991-9300
info @protecttaxpayers.com
wwwprotecttaxpayers.com
FOR
Paul E. Laubacher, R.N.
YES on 85/Parents' Right to
Know and C[ild Protection
1703 India Street
San Diego, CA 92101
Toll-Free (866) 828-8355
Janet@YESon85.net
www.YESon85.net
AGAINST
Steve Smith
No on 85-for Real
Teen Safety
555 Capitol Mall, Suite 510
Sacramento,.CA 95814
(et6) 669-4802
info@Noon85.com
wwwNoon85.com
* * * Ballol Measure Summary I 9
BATLOT MEASURE SUMMARY * * *
PROP Tax on Cigarettes. Initiative Constitutional PROP Alternative Energy. Research, Production,
Amendment and Statute.Incentives. Tax on California Oil Producers.
Initiative Constitutional Amendment and Statute.86 87
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
and indirectly increases taxes on other tobacco products.
Provides funding for various health programs, children's
health coverage, and tobacco-related programs. Fiscal Impact:
Increase in excise tax revenues ofabout $2.1 billion annually
in 2007-08 spent for the specified purposes outlined above.
Other potentially significant costs and savings for state and
local governments due to program changes.
Establishes $4 billion program to reduce petroleum
consumption through incentives for alternative energy,
education and training. Funded by tax on California oil
producers. Fiscal Impact: State oil ta5 revenues of $225
million to $485 million annually for alternative energy
prcigrams totaling $4 billion. State and local revenue
reductions up to low tens of millions of dollars annually.
WHAT YOURVOTE MEANS WHAT YOURVOTE MEANS
YES
A YES vote on this measure
means: The existing state
excise tax on cigarettes
and other tobacco products
would increase by $2.60
per pack to support new
or expanded programs for
health services, children's
health coverage, and
tobacco-related activities.
Other existing programs
supported with tobacco
excise taxes would continue.
NO
A NO vote on this measure
means: State excise taxes
on cigarettes and other
' tobacco products would
remain at the current level
of87 cents per pack and
would continue to be used
for existing purposes,
including childhood
development programs
and various health and
tobacco-related programs.
YES
A YES vote on this
measure means: The
state would impose a
tax on oil production
to support $4 billion in
expenditures to dev€lop
and promote alternative
energy technologies and
promote the reduction
ofpetroleuin use.
NO
A NO vote on this measure
means: The state would not
impose a tax on oil production
to fund these activities.
ARGUMENTS
ARGUMENTS PRO
Vote YES on Piop. 87
and make oil companies
pay their fair share for
cleaner, cheaper energy. Oil
companies pay billions in
oil drilling fees in Alaska
and Texas-but almost
nothing in California.
Prop. 87 makes oil
companies pay and
makes it illegal to pass
the cost to consumers.
coN
$4 BILLION oil tax
increase!HIGHER
GAS PRICES. HUGE
BUREAUCRACY, LACKS
ACCOUNTABILITY.
No requirement they
produce results, DENIES
REVENUES to SCHOOLS.
We need alternative energy,
but PropositionS7 rs not
the way to get there. CA
Taxpayers',{ssociation, small
business, labor, schools,
pol ice, fi refi ghters, farmers,
Auto Club say: Vote NO.
PRO
Proposition 86 reduces
smoking and saves lives.
A study by the California
Department of Health
Services says Proposition 86
will keep 7001000 kids from
becoming adult smokers and
prevent 300,000 smoking-
related deaths. The same
study says Proposition 86 will
' save over $16 BILLION in
health care costs. Yes on 86.
coN
Proposition 86 is really
about hospitals using our
Constitution and laws
to pocket millions for
themselves and HMOs
through a $2.1 billion
tax hike. Section 9
even gives hospitals an
exemption to antitrust
laws! It's another lottery
mess-and no guarantees
on how the money will
be spent. No on 86.
FORADDITIONAL INFORMATION FORADDITIONAL INFORMATION
FOR
Bob Pence
Coalilion For A
Healthy California
l717 I Street
Sacramento, CA 95814
(9t6) 448-2720 '
info @healthycalifornia.com
wwwyesprop86.com
A,GAINST
No on 86-Stop the
$2 Billion Tax Hike
3001 Douglas Blvd. #225
Roseville, CA 95661
(916) 218-6640
info@86facts.org
www.86facts.org
FOR
Yes on 87
Californians for
Clean Energy
!
6399 Wilshire Blvd.,
Suite 1010
Los Angeles, CA 90048
(323)782-104s
info@yeson87.com
www.yeson8T.com
AGAINST
Californians Against
Higher Taxes-No on 87, 1
a coalition of taxpayersl
educators, schools, public
safety offi cials; businesses,
labor, energy producers,
agriculture, and seniors.
lll Anza Blvd., Suite 406
Burlingame, CA 94010
(650)340:0262
info@NoOilTax.com
www.NoOilTax.com10 I Ballot Measure Summary * * *
* * * BATLOT MEASURE SUMMARY
PROP Education Funding. Real Property Parcel Tax. " PROP Political Campaigns. Public Financing.
Corporate Tax Increase. Campaign Contribution
and Expenditure Limits. Initiative Statute.88 89Initiative Constitutional Amenflment
and Statute.
SUMMARY Put on the Ballot Petition
Imposes $50 tax on each real property parcel to provide
additional public school funding for kindergarten through
grade 12. Exempts certain elderly, disabled homeowners from
tax. Use of funds restricted to specific educational purposes.
Fiscal Impact: State parcel tax revenue ofroughly $450 million
annually, allocated to school districtS for specified education
programs.
SUMMARY Put on the Ballot by Petition Signatures
Provides that eligible candidates for state'elective office may
receive public campaign fundirig. Increases tax on corporations
and financial institutions by 0.2 percent to fund program.
Imposes new campaign conJribution/expenditure limits. Fiscal
Impact: Increased revenues (primaiily from incieased taxbs
on corporations and financial institutions) totaling. more than
$200 million annually to pay for the public financing of
political campaigns.
WHAT YOURVOTE MEANS WHAT YOURVOTE MEANS
YES
A YES vote on this measure
means: The state would
levy an annual $50 tax
on most parcels of land
in California, with tlle
proceeds allocated to school
diqtricts for five specified
K-l 2 education programs.
NO
A NO vote on ihis measure
means: The state would
not levy an annual $50 tax
on most parcels of land to
raise additional funding for
K-l 2 education programs.
YES,
A YES vote on this measure
means: Candidates for state
offices could choose to receive
public funds to pay for the
costs of campaigns if they
m6et certain requirements.
Candidates hot accepting
public funds would be
subject to lower contribution
limits than currently. The
tax rate on corporations'
and fi nancial institutions
would be increased to pay
for the public fin4ncing
of political campaigns.
NO
A NO vote on this measure
means: Candidates.for state
offices would continue to
pay for their campaigns
with private funds subject to
cUrrent contribution limits.
The tax rate on corporations
and financial institutions
wouldnot change.
ARGUMENTS ARGUMENTS
PRO
Proposition 88 will improve
our schools. Ithelps teachers
by providing funds directly to
local schools to reduce class
size and provide textbooks
and learning materials. It
requires strict aceountability
and exempts disabled
and elderly homeowners.
Teachers, businesses, and
taxpayers agree: YES on
88 for Textbooks, Smaller
Classes, Better Schools.
coN
The State Legislature deqides
where your tax money.
goes. New layers of costly
bureaucracy are created.
, 95%+ of schools could
NEVER receive facility
grants under Proposition '
88! Proposition 88 creates
a NEW KIND OF NEVER
ENDINGPROPERTY.
TAX, opening the door to
UNLIMITED property parcel
tax increase propositions.
'Proposition 88-NO!
PRO
Proposition 89 will curb
corruptibn in Sacramento and
reduce the power ofspecial
interests and lobbyists over
our government. It will level
the playing field and assure
that elections are about ideas,
not money. It will enable
everyday people, like teachers,
nurses and firefighters, to'run for public office.
coN
Proposition 89 i's phoney
reform. Prop. 89 increases
taxes for politicians to
finance their political
campaigns and negative ads.
The special interests behind
89 wrote it to give themselves
an unfair advantage,
lirnitin$ the voice of small
businesses and nonprofits
and damaging consumers.
It's too complicated and
unworkable. Vote No on 89.
FORADDITTONAT INFORMATION FORADDITIONAT INFORMATION
FOR
Yes on 88---Taxpayers
for Better Schools and
Smaller Classes
ll07 9th Street
Sacramento, CA 95814
(er6) 448-3868
VoteFor8 8 @EdVoice.org
wWwVoteFor88.org
AGAINST
Californians Against
the Statewide Parcel
Property Tax
925 University Ave;
Sacramento, CA 95825
(916)927:.lst2
info@NoProp88.com
www.NoProp88.com
FOR
Michael Lighty
Californians for Clean
Elections, Yes on 89
2000 Franklin Street
Oakland,CA94612
(800) 440-6877
info@yeson89.org
www.yeson89.org
AGAINST
Californians to Stop 89
1415 L Street, Suite 1250
Sacramento, CA 95814
(916)708:7824
info@noprop89.org
www;noprop89.org
* * * Ballot Measure Summary I 11
BALTOT MEASURE SuMMEny * * *
PROP Government Acquisition,
90 Regulation of Private Property.
Initiative Constitutional Amendment
SUMMARY Put on the Ballot by Petition Signatures
Bars state/local governments from condemning or damaging
private property to promote other private projects, uses. Limits
government's authority to adopt certain land use, housing,
consumer, environmental, workplace laws/regulations. Fiscal
Impact: Increased annual government costs to pay property
owners for losses to their property associated with new laws and
rules, and for property acquisitions. These costs are unknown,
,but potentially significant on a statewide basis.
WHAT YOUR VOTE MEANS
YES
A YES vote on'this measure
means: State and local
governments would have
significantly increased
requirements to compensate
property owners for
economic losses to their
property resulting from
new laws or rules. Also,
government wOuld be more
restricted in taking private
property for public uses.
NO
A NO vote on this measure
means: There would be no
changes in the ri:quirements
on government for: (l)
paying for economic losses
to property resulting from
new laws and rules aird
(2) taking private property
for public purposes.
ARGUMENTS
PRO
Proposition 90 stops eminent
domain abuse and protects
the American Dream-the
fundamental right of every
American to own a home. It
prevents government from
taking.your home or property
without your permission and
turning,it over to poqerful
developers who want to
build strip malls or other
commercial projects.
coN
Prop. 90 is a deceptive
and costly taxpayer trap. It
would create new categories
of lawsuits costing taxpayers
billions of dollars every
year. It is anti-taxpayer
and anti-homeowner. Join
taxpayers, homeowners
groups, conservationists,
police, firefighters, and
businesses. Vote NO on 90.
FORADDITIONAL INFORMATION
FOR
California Protect our
Homes Coalition
2443 Fair Oaks Blvd.,
Suite 191
Sacramento, CA 95825
(916) 924:1501
info@90yes.com
www.90yes.com
AGAINST
No on 90, Californians
Against the Taxpayef Trap
ll2l L Street #803
Sacramento, CA 95814
info@noprop90.com
www.NoProp90.com
12 I Ballot Measure Summary * * *
i
BALTOT MEASURES DEFINED * * *
Legislative Bond Measure
Any bill that calls for the issuance of general obligation,bonds must be adopted in each house of
the Legislature by a two-thirds vote, signed by the Governor, and approved by a simple majority of
the public's vote to be enacted. Whenever a bond measure is on a statewide ballot, an overview of
California's bond debt is included in the ballot pamphlet.
Legislative Constitutional Amendment
Whenever the Legislature.proposes an amendment to,the California Constitution, it is known as a
legislative constitutional amendment. It must be adopted in the Senate and the Assembly by a two-
thirds vote before it can be plabed on the ballot. A legislative constitutional amendment {oes not
require the Governor's signature. This type of amendment requires a simple majority of the public's
vote to be enacted.
Legislative lnitiative Amendment
Wherlever the Legislature proposes to amend a law that was previously enacted through the initiative
process, the Legislature is required to present the amendment to the voters for passage. The Legislature
may amend the previously-adopted initiative measure if the measure permits legislative amendment or
repeal without voter approval. This type of amendment requires a simple majority ofthe public's vote
to be enacted. \
lnitiatives
Often referred to as "direct democracy,'" the initiative process is the power of the people to place
measures on the ballot. These measures can either create or change statutes (including general obligation
bonds) and amend the California Constitution. If the initiative proposes to amend California statute.,
signatures of registered voters gathered must equal in number to 5o/o of the votes cast for all candidates
for Governor in'the previous gubernatorial election. If the initiative proposes to amend the California
Constitution, signatqres of registered voters gathered must equal in number tp 8o/o of the votes cast
for all candidates for Governor in the previous gubernatorial election. Ari initiative requires a simple
majority of the public's vote to be enacted.
Referendum
Referendum is the power of the people to approve or reject statutes adopted by the Legislature.
Howeveq referenda cannot be used to approve or reject urgency measures or statutes that call for
elections or provide for tax levies or appropriations for current oxpenses of the state. Voters wishing
to block implementation of a legislatively-adopted statute must gather signatures of registered voters
equal in number to 5Vo of the,votes cast fpr all candidates for Governor in the previous gubernatorial
election within 90 days of enactment of the bill. Once on the ballot, the law is defeated if voters cast
more NO votes thanYES votes on the referendum question.
* * * Ballot Measures Defined I 13
PROPOSITION TRAN SPORTATION FUNDING PROTTCTION.
IEGI S TATIVE CON STITUTIONAL AMEN DMENT.
OFFICIAL TITLE AND SUMMARY * * *Prepared by the Attorney General
TRANSPORTATION FUNDING PROTEOTION.
TEGISLATIVE CONSTITUTIONAT AMENDMENT.
' Protects transportation funding for traffic congestion relief projects, safety improvements, and local
streets and roads.
' Prohibits the state sales tax on motor vehicle fuels from being used for any purpose other than
transportation improvements.
' Authorizes loans of these funds only in the case of severe state fiscal hardship. Requires loans
of revenues from states sales tax on motor vehicle fuels to be fully repaid within the three years.
Restricts loans to no more than twice in any lO-year period.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
' No direct revenue or cost effects. Increases stability of funding for state and local transportation
uses in 2007 andthereafter; reduces somewhat the state's authority to use these funds for other,
nontransportation pri orities.
FII{AL VOTES CAST BY THE TEGISLATURE ON SCA 7 (PROPOSITION 1A)
Senate: Ayes 38 Noes 0
Assembly: Ayes 58 Noes l1
ANATYSIS BY THE LEGTSTATIVE ANAIYST
BACKGROUND
California spends about $20 billion a year to
maintain, operate, and improve its highways,
streets and roads, .passenger rail, and transit
systems. About one-half of the funding comes
from various local sources, including local sales
and property taxes, as well as transit fares..The
' remainder comes from the state and federal levels,
lalgely from gasoline and diesel fuel taxes, and
truck weight fees.
Currently, the state levies two types of taxes on
motor fuels:
. An excise tax of 18 cents per gallon on gasoline
and diesel fuel. (This is gbnerally referred to'as
the gas tax.)
' A statewide 6 percent tax on the sale of gasoline
and diesel fuel ("sales tax").
Gas Tax Revenues from the state excise tax on
gasoline and diesel fuel used on public roads total
about $3.4 billion per year. The State Constitution
14 I Title and Summary/Analysis * * *
TRANSPORTATION FUNDING PROTECTION. PROP
LEGISTATIVE CONSTITUTIONALAMENDMENT. 1A
* * * ANATYSIS BY THE LEGISLAIIVE ANALYST tcoNrrNuror
restricts the use of these revsnues to specific
transportation pu{poses, These include constructing,
.
maintaining, and operating public streets and
highways, acquiring right of way and constructing
public transit systems, as well as mitigating the
erivironmental effects of these facilities.
Ssles Tax. The state's sales tax on gasoline and ,
diesel fuel currently provides about $2 billion
a year. Until 2002, most of the revenues from
the state sales tax on gasoline were not used for
transportation purposes. Instead these revenues
were used for various general purposes including
education, health, social services, and corrections.
Proposition 42, which was approved by voters in
2002, amended the State Constitution to dedicate
most of the revenue from the sales tax on gasoline
to transportation uses. Specifically, Proposition 42
requires those revenues that previously went to the
General Fund be transferred to the Transportation
Investment Fund to provide for improvements to
highways, streets and roads, and transit systems.
Proposition 42, however, allows the transfer to be
suspended when the state faces fiscal difficulties.
Proposition 42 is silent as to whether suspended'
transfer amounts are to be repaid to transportation.
Since 2002, the state has suspended the
Proposition 42 transfer twice because of the
state's fiscal condition. In 2003-04, the transfer
was suspended partially, and in 2004-05, the full
amount of the transfer was suspended. Existing
law requires that these suspended amounts, with
inJerest, be repdid to transportation by 2008-09
and 2007-08, respectively.
PRIIPOSAL
This measure amends the State Constitution
to further limit the conditions under which the
Proposition 42 transfer of gasoline sales tax
ievenues for transportation uses can be suspended.
Specifically, the measure requires Proposition 42
suspensions to be treated as loans to the General
Fund that must be repaid in full, including interest,
within three years of suspension. Furthermore, the
measure only allows suspension to occur twice in
ten consecutive fiscal yea{s. No suspension could
occur unless prior suspensions (excluding those
made prior to 2007-08) have been repaid in fuIl.
In addition, the measure lays out ia.new schedule
to repay the Proposition 42 suspensions that
occurred in 2003-04 and 2004-05. Specifically, the
suspended amounts must be repaid and dedicated
to transportation uses no later than June 30, 2016,
at a specified minimum annual rate of repayment.
FISCAL EFFECTS
This measure wouldhaveno directrevenue or co3t
effect. By liraiting the frequency and the conditions
under which Proposition 42 transfers may be
suspended in a ten-year period" the measure would
make it more difficult to use Proposition 42 gasoline
sales tax revenues for nontransportation purposes
when the state experiencgs fiscal difficulties. As a
result, the measure would increase the stability of
funding to state and local transportation in 2007 and
thereafter. However, the state's authority to direct
available funds to meet other nontransportation
priorities inthe eventthe state faces fiscal difficulties
would be somewhat reduced.
For'text of Proposition lA see page 114.
***Analysis 115
PROP
1A
TRAN S PORTA{TION FUNDING PROTECTION.
LEGISLAIIVE coNSTITUTIoNAI AMENDMENT. * * *
ARGUMENT IN FAVOR OF PROPOSITION 1A
YES ON PROPOSITION lA: USE EXISTING'GAS
TAXES F9R ROADS AND TRANSPORTATION
PROJECTS
In 2002, California voiers made their commitment to
California roads a priority by passing Proposition 42. Voters
said they wanted their.gas taxes spent on making roads and
highways safer and less congested. But a loophole in the
law has made it easy-too easy-for the politicians to use
those funds for other purposes. In the last three years, nearly
$2.5 billion has been siphoned away from road and highway
projects-bringing criti'cal safety and congestion relief
projects to a halt.
YES ON IA STOPS OUR,'EXISTING GAS TAXES
FROM BEING USED FOR OTHER PROJECTS
Proposition lA ,closes the loophole in the law and
ensures that the gas taxes you already pay are spgnt only
on transportation projects benefiting California's 20 million
drivers.
YES ON IA BUITDS NEW ROADS AND HIGHWAYS
California currently has thd most congested roads in the
nation and our streets and highways.are in major disrepair.
Drivers spend $i0.7 billion in extra fuel each year and 500,000
hours stuck in traffic every day.because ofour overcrowded
roads. Prop. 1A ensures a stable source oflong-term funding
to get urgently needed transpottation improvement projects
off the drawing board, allowing enginedrs to:. Make traffic safety improvements .. Repair the most dangerous sections of state highways .
q Reduce congestion on major freeways .. Widen freeways to prevent bottlenecks. Completq our network of carpool lanes. Fix neglebted streets and roads.
,Improve public transit
.
YES ON IA MEANS A STRONGER ECONOMY
California's economy depends on a first-rate transportation
system (something we used to have). Without a major
emphasis on improving our infrastructure so we can move
people and goods throughout the state, our economic future
will suffer.
YES ON lA: PART OF A LONG-TERM PLAN TO
REBUILD CALIFORNIA
Proposition lA is part of the Rebuild California Plan,
the first comprehensive infrdstructure plan in 40 years. The
plan uses the taxes we're already paying to build the roads,
housing, schools, and water systems we need to sustain our
economy and our quality of life for the long-term.
REBUILD CALIFORNIA: YES ON tA! lB, lC, lD,
and te
California's population will reach 50 million in the nexi
20 years-twice what our current infrastructure was designed
.for-and it can't be rebuilt overnight. That's why we've got
to start now.
To l€am more about how this infr astructure plan will benefit
you and yonr community, visit www.ReadForYourself.org.
YES ON 1A: ENSURE EXISTING GAS TAX DOLLARS
ARE USED TO.IMPROVE CALIFORNIA'S ROADS,
HIGHWAYS AND MASS TRANSIT SYSTEMS
TH0MAS V. McKERNAN, President
. Automobile Club of Southern California (AAA)
MICHAEL BR0WN, Commissioner
California Highway Patrol
MARIAN BERGES0N, Chair
California Transportation Commission
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1A
Excellent public schools and universities have made
California the "Golden State." Education is the engine that
drives California's economy.
Proposition lA removes Education from being the top
budget priority!
The People .passed Proposition 42 with exceptions for
drastic-times.,It currently takes 2/3 of the Legislature and
the Governor to agrbe to borrow gasoline taxes.
Some say $2.5 billion has been "siphoned off'the gasoline
taxes. The borrowed money is being repaid with interest.
And, the ."Rebuild California Plan" will not be affected if
Proposition IA is defeated.
You must Vote "NO" on Proposition,ll unless you believe
there will never again be a recession in California.
You must Vote "NQ" on Proposition .11 unless you know
there will never again be a si.peable earthquake, flood, levee
break, or'fire in California that requires a quick response to
save lives and property.
1 6 I Arguments * * * Arguments printed on rhis page are the opinions ofthe authors and have no! been checkedfor aceuracy by any offcial agency.
You must Vote "NO" on Proposition lA unless youlthink
that emergency rooms, hospitals, and trauma centers will
never again need tri have funding priority.
And, you must Vote "NO" on Proposition llmnless you
think it was OK to withhold $2 billion from the minimum
guarantee to our IG-12 schools and to continue to raise
itnclenr fees at our state colleges and universities. These
terrible cuts to iducation would have been much worse if
Proposition IA had been in effect.
For our children, for our economy, and to make sure that
we can continue to deal with the a,ftermath of disasters, Zote
"NO" on Proposition IA.
JAC(IE G0LDBERG, Chair
Assembly Education Committee
('" r-
TRANSPORTATION FUNDING PROTECTION. PROP
* * * LEGISLATIVE CONSTITUTIQNATAMENDMENT. 1A
ARGUMENT AGAINST PROPOSITION 1A
When the next recession hits, the Legislature and
the Governor must be able to prioritize both cuts and
expenditures
Proposition 1A would put-stlll more of California's budget
on 'oautomatic pilot." That ineans that the Governor and
the Legislature won't be able to set priorities. If education,
healthcare, public safety, or childcare funds are in need of
money, during any recession, Ihe first priority for gasoline
taxes will be potholes an$ highways. Highways and potholes
are very, important. But on this ballot Proposition lB will
provide almost $20 billion dollars for Transportation.
Pro. position'42 of 2002 already has strong protections fot
highway and pothole funds. Money' c an only'beborrowed by
a 2/3 vote of both houses'and the signature of the.Governor.
It must be repaid and with intelest for the full time it was
borroWed. Proposition 1A tightens the restrictions, and '
makes borrowing almodt impossible.
Everyone seems to agree in California that our number
one liriority is PublicEducation! But, if Proposition 1A were
to pass, that would no longer be true. We only have to look at
reCeni history to understand the impact of Proposition lA'
ln 2003-04, the Legislature and the Govern6r borrowed
$868 million from the sales tax revenue on gasoline. And in
2004-05, we again borrowed $1.253 billion from the same
funds. Without the ability to borrow money internally, the
choices would have been to boYrow from Wall Street, make,
massive cuts to health and education, or raise taxes.
Even with about $2 billion in borrowing from gasoline tax
funds, K-12 public schools still were cut $2 billion from what
they were guaranteed. W6 also cut funds for textbooks and '
maintenanie of classrooms and school buildings. Community
college stud'ents sbw their fees more than double, rising from
$11 per unit to $26 per unit, and hundreds ofthousands of
community college students had to quit college as a result.
University of California and California State University
students saw their undergraduate fees'rise a whopping 30%
in three years time.
We have not repaid the $2 billion cut made to,K-12
qducation in 2004-05. And, if Propoiition 1A had been in
effect, the cut to K-12 public education could have been $4
bitlion t
In bad years, the Legislature and the Governor need the
flexibility,to shift funds temporarily to ensure that education
receives at least its miniinum guarantee. The Legislature
and the Governor need to be able to set priorities as they
iome up. If theie is pn earthquake, flbod, or major fires, or if
trauma centers and emergency rooms continue to closq we'
need to be able to address those emergeniies. Don?t tie the
hands of those whose job it is to reflect your priorities in the
State budget. VOTE *NO2'ON PROPOSITION,IA!
IACKIE G0LDBERG, Chair
Assembly Education Committee
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 1A
Proposition lA is about upholding the will of voters ahd Prop. lA. witl not reduce.funding for education or any
setting priorities. Ih 2A0Z, iearly l0% of yotbrs approved other state program. Education funding is constitutionally
a measure that was supposed tor dedicate our gas taxes to protected and Proposition 1A does not change that.
transportation improvements. The voters said building new . That's why educators leading taxpaler, environmental,
roads, relieving congestion, and improving highway safety, business, and public safety groups support'Prop. lA. '
are priorities Proposition lA is part of the Rebuild California Plan, the
Unfortunately, as the opponent points out. politicians first comprehensive infrastructure plan in 40 years.
have been exploiting a loophole inthat lary. They've diverted ' VOTE YES ON lA. Ensure our existing gas tax dollars
nearly $2.5. billion in gas-taxes that were. supposed to go,to are usgd to improve california's roads, highways, and mass
transportation and spent that money ori other programs, 4l a transit systems.
result, our transportation system is badly neglected and the
Lu"tiog of congestion reliei highway safety,
-and road repair STEVE KRULL, president ' t
projects has grown larger. California police Chiefs Association
^,lS'"SYr"T'?H'^t"ii-Ti%Ht%KJglKST,il#,iJ;"lffi ;H"',J"'utiveDirector
FOR ALL.-vBioN
lA simply makes sure the gas taxes we pay at lt-l|N ZAREMBERG' President
the pump are actually used to build 4eriro"at't"a ittip-"" california chamber of commerce
out ttunipottation syitem !' .
Argumentsprintedonthispagearetheopinionsoftheauthorsandhavenotbeencheckedforaccuracybyanyfficialagency. ***AfgumentS I 17
PROPOSITION HIGHWAY SAFETY, TRAFFIC REDUC'IION,
ArRQrALrTy, At{D PORT.,SECURTTY BOND ACT OF 2006.T
OFFICIAL TITLE AND SUMMARY * * *Prepared by the Attorney General
HIGHWAY SAFETY, TRAFFIC REDUCTION,
AIR OUAI.ITY, AND PORT SECURITY BOND ACT OF 2006.
' Makes safety improvements and repairs to state highways; upgrades freeways to reduce congestion;
repairs local streets and roads; upgrades highways along major transportation corridors.. Improves seismic safety of local bridges.
' Expands public transit.. Heips complete the state's network of car pool lanes.. Reduces air pollution.. Improves anti-terrorism security at shipping ports.
' Provides for a bond issue not to exceed nineteen billion nine hundred twenty-five million dollars
($ I 9,925,000,000).. Appropriates money from the General Fund to pay offbonds.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
' State costs of about $38.9 billion over 30 years to pay offboth the principal ($19.9 billion) and interest
($ I 9.0 billion) costs of the bonds. PaSrments of about $ 1 .3 billion per year
' Additional unknown state and local government costs to operate and maintain transportation
infrastructure (such as roads, bridges, and buses and railcars) funded with bonds. A portion of these
costs would be offlset by revenues generated by the improvements, such as fares and iolls.
FINAT VOTES CAST BY THE TEGISTATURE ON SB 1266 (PROPOSITION 1B)
, Senate: .Ayes 37. Noes I
Assembly: Ayes 61 Noes'10
ANALYSIS BY THE LEGIS TATIVE ANALYST
BACKGROUND
California spends about $20 billion a year from
a combination of state,. fgderal, and local funds to
maintain, operate, and improve its highways, streets
and roads, passenger rail, and transit systems. These
expenditures are primarily funded on a pay-as-you-
go basis from taxes and user fees.
There are two primary state tax sources that fund
state transportation programs. First, the,state's 18
cent per gailon excise tax on gasoline and diesel fuel
(generally referred to as the gas tax) generates about
$3.4 billion annually. Second revenues from the
state sales tax on gasoline and diesel fuel currently
provide about $2 billion a year. Additionally, the
state imposes weight fees on commercial vehicles
18 I Title and Summary/Analysis * * *
,/- -.. /-'.
i
HIGHWAY SAFETY, TRAFFIC REDUCTION,
AIR QTAIITY, AND PORT SECURITY BOND ACT OF 2006.
PROP
1B
* * * ANALYSIS BY THE LEGISLAIIVE ANALYST tcoNrtxuror
(trucks), which generate roughly $900 million '
a year, Generally, these revenues must be used
for specific transportation purposes, including
improvements to highways, streets and roads,
passenger rail, and transit systems. These funds
may also be used to mitigate tho environmental
impacts of various transportation projects. Under
specified conditions, these revenues may be loaned
or used for nontransportation uses.
Since 1990, voters have approved roughly
$5 billion in state general obligation bonds to fund
transpor,tation. These'bond proceeds have been
dedicated primarily to passenger rail and transit
improvements, as well as to retrofit highways and
bridges for earthquake safety. As of June 2006, all
but about $355 million of the agthorized bonds
have been spent.on projects.
In addition to state funds, California's
transportation system receives federal and local
money. The state receives about $4.5 billion
a year in federal gasoline and diesel fuel tax
revenues for various transportation purposes.
Collectively, local governments invest roughly
$9.5 billion annually into California's highways,
streets and roads, passenger rail, and transit
systems. This funding comes mainly from a
mix of local sales and properJy taies, as well as
transit fares. Local governments have also issued
bonds backed mainly by local sales tax revenues
to fund transpoitation projects.
PROPOSAT
This measure authorizes the state to sell about
$20 billion of general obligation bonds to fund
transportation projects to relieve cong€stion,
improve the movement of goods, irnprove air
quality, and enhance the gafety and security of the
transportation system. (See 'An Overview of State
Bond Debt" on page 96 for basic information on
state general obligation bonds.)
Figure I (see next page) summarizes the purposes
for which the bond money would be used. The
bond money would be available .for expenditure
by various state agencies and for grants to local
agencies and transit operators upon appropriation
by the Legislature
. Congestion Reduction, Highway and Local
Road Improvemenfs--$ I 1.3 billion-for capital
improvements to reduce congestion and increase
capacity on state highways, local roads, and
public transit for grant's available-tb locally funded
transportation projects, as well as for projects to
, rehabilitate state highways and local roads.
. Public Transportution-$A' billion-to make
capital improvements to local transit'servic6s
' and the state's intercity rail service. These
improvements would include purchasing
." 'buses and railcars, as well as making safety
enhancements to existing transit facilities.
. Goods Movement and Air Qrality-$3.2
billion-forprojects to improve the movement of
goods-through the ports, on the state highway
. and rail systems, and between California and
Mexico-and for projects to improve air quality' by reducing emissions related to goods movement
and replacing or retrofitting school buses.
. Sufet! and Security-$l.5 billion-for proj'ects
to increase protection against a security threat or
improve disaster response capabilities on transit
dystems; as well as for grants to improve'the
safety ofrail crossings to seismically retrofit local
bridges, ramps, and overpasses; and to improve
. secuiity and disaster planning in publioly owned
' ports, harbors, and ferry terminals.
FISCAT EFFECTS
Bend Costs. The .costs of these bonds. would
depend on interest rates in effect at the time they
are sold and the time period over which they are
repaid. The state would likely make principal and
For text ofProposition 18 seepage.l14
* * * Analysis I 19
PROP
1B
HIGHWAY SAFETY, TRAFFIC REDUCTION,
AIRQTATITY, AND PORT SECURITY BOND ACT OF 2006.
E ANATYSIS BY THE LEGISLAIIVE ANATYST (coNrrsuEoi
Congestion Reduction, Highway and Local Road lmprovem6nts
Reduce congestiori on state highways and major aciess routes
lncrease highways, roads, and transit capacity
lmprove local roads
Enhance State Route 99 capacity, safety, and operations
Provide grants for locally funded transportation projects
Rehabilitate and improve operation of state highways and local roads
Public Transportation
lmprove local rail and transit services; including purchasing vehicles and right of way
Improve intercity rail, including purchasing railcars and locomotives
Goods Mqvement and Air ouality
lmprove movement of goods on state highways and rail system, and in ports
Reduce emissiqns from goods movement activities
Retrofit and replace school buses
Sa,fety and Security
lmprove security and facilitate disaster response of transit systems
Provide grants to improve railroad crossing safety
Provide grants to seismically retrofit local bridges and overpasses
Provide grants to improve security and disaster planning in publicly owned ports, harbors, and ferry facilities
Amount
(ln Millions)
$1 I,250
$4,500
2,000
2,000
1,000
1,000
'750'
$4,000
$3,600
400
$3,200
$2,000
1,000
200
$t,475
$1',,000
250
r25
100
Tota I $19,925
Proposition 1 B: Uses of Bond Funds
20lAnalysis***
.t
HIGHWAY SAFETY, TRAFTIC REDUCTION, PI9P
ATRQTALTTY, AND PORT SECURITY BOND ACT OF 2006. 18
* * * ANATYSIS BY THE TEGISTATIVE ANALYST tcoNTINuEoi
interest payments from the state's General Fund
over.a period of about 30 years. If the bonds
are sold at an averago interest rate of 5 percent,
the cost would be about $38.9 billion to pay off
both the principal ($19.9 billion) and interest
($19.0 billion). The average repayment for
principal and interest would be about $1.3 billion
per year.
Operational Costs. The state and local
governments that construct or improve
transportation infrastructure with these bond funds
(by, for example, building roads and .bridges or
purchasing buses or railcars) will incur unknown
additional costs to operate and maintain them. A
portion of these costs would be offset by revenues
generated by the jmprovements, such as transit
fares and tolls.
For text ofProposition lB see page 114.
***Analysis 121
PROP HIGHWAY SAFE] T, TMFFIC REDUCTION,
18 ArRerAlrry, AND poRT sECURrry BoND ACT oF 2006.* * *
ARGUMENT IN FAVOR OF PROPOSITION 1B
YES ON PROPOSITION'lB: BUILD NEW ROADS
AND HIGHWAYS NOW' California .has |he most cortgested highways in the
nation-we spend 500,000 hours stuck in traffic every day.
It'q clear that the timt! to rebuild California's roads; higliways,
a4d transportation systerns is now. i
Proposition 1 B puts backlogged transportation projects on
the fast track, reducing congestion and improving highway
safety,-' While Prop. lA protects the gas tax funds we already pay
at the pump, Prop. lB is just as important because it provides
funding now to jump-start repairs of our aging highways and
to start building the transportation'projects we know we'll
need in the future.
YES ON IB IMPROVES SAFETY, REDUCES
CONGESTION, AND EXPANDS PUBLIC TRANSPORTATION
Proposition lB will filnd projects in every corner of the
state. Prop. 1B investyin: .. Making safety improvements to the most dangerous
highways and corridors. Reducing congestion andtravel delays. Adding more lanes to congested highways. Fixing local streets, ro4ds, and intersections. Building and expanding public transportation. Making bridges seismically safe. Expanding carpool lanes. Providinghatching funds for communities thit have
approved local transpoitation measures
YES ON IB WILL REDUCE AIR POLLUTION AND
IMPROVE AIR QUALITY
Prop. 18 includes funding to reduce alr pollution by
replacing old polluting school buses, expanding ffiass transit,
and expanding carpool and HOV lanes. And, by reducing
congestion on our freeways and roads, Prop. 18 will also
help reduce car emissions-one of the leading sources of air' pollution., YES ON IB: STRICT ACCOUNTABILITY AND NO
NEW TAXES. Prop. lB includes important accountability measures like
annual audits and reports to ensure funds are spent on
' intended projects.
: Prop. lB leti us begin building roads now and pay for
them as we use them-with current tax revenues and
without raising taxes. It is like a mortgage on a house that
lets you live in your home while you pay for it.
YES ON lB: PART OF A LONG-TERM PLAN TO
REBUILD CALIFORNIA
Proposition lB is part of the Rebuild Calihrnia Plan,
which uses the taxes we're already paying to build the roads,
housing,. schools, and water systenis we nbed to sustain our
economy and our quality of life for the long term.
REBUILD CALIFORNIA: YES ON lA, 1B, lC, lD,
and lE
California's population will reach 50 million in the next 20
years-twice what our current infrastructure was designed
for-and it can't be rebuilt overnight. That's why wb've got
to start now
, To leam more a$out how this infrastructure plpn will benefit' .you and your community, visit www:ReadForYourself.org.
YES ON IB: SAFERROADS, LESS POLLUTION, AND
REDUCED TRAFFIC CONGESTION
MARIAN BERGiSON, clrair
California Transportation Commission
ALAN C. LIOYD, Former Chair
California Air Resources Board
\
ATLAN ZAREMBEIiG, President
California Chamber of Commerce
rl
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1B
We've all heard, "some things are too good to be true."
The argument in support of Proposition lB is clearly one of
those times.
Instead of envisioning a home mortgage being paid
for while you live in it, as the proponents would have you
imagine, envision instead drowning in a sea of credit card
debt. That's,where California is headed. ,
We all want better roads and less traffic congestion.
However, if the Legislature turned its attention to
streamlining construction projects and easing over-
burdensome regulations; we wouldn't need to borrow billions
of dollars. Instead, we would use. ah annual portion of, our
general fund tax dcillars with limited borrowihg to complete
lhese projects. This -balanced approach would significantly
reduce our need to borrow billions of'dollars.
What about accountability and audits?
When was.the last time an audit of state government
spending showe{ that its, programs were cost effective
and timely? Quite the opposite is true. A well.
thought out plan for our transportation needs is the
only sensible way to improve California's roadways.
A hastily developed bond, with "after the fact" oversight,
containing billions of dollars in borrowing is a recipe for
failure.
Make no mistake; a bond is not free money. You will.pay
for the considerable borrowing with substantial interest. NO
on lB will force the Legiqlature to develop a responsible
bond package by including "pay as you go," environmental
permitting reform, design-build efficiencies, and other
common sense reforms.
MICHAEL N. VILLINES, California State Assemblyman
29th District
22 I AfgUmentS * * * ' Argument$ piinted on this page are the opinions of the authors and have.not been"checkedfor accuracy by any fficial agency.
a
GHWAY SAFETY, TRA}IIIC REDUCTION'
O NO*' SECURITY BOND ACT OF 2006'
PROP|"
I.HI
* * *ATRWAIITY,AN
1.B
ARGUMENT AGAIN ST PROPOSITION 1B
REBUTTAL TO ARGU MENT AG AINST PROPOSITION 1B
Even the opponent agrees we haveto slafinow to improve
oui state,s crumbling iru"rpo*ution system, build new
rodds. and relieve n"*'""lglsiion' ritat's exactly what
Proposition lB will do'
YEsoNlBwillfinattymateourtransportationsystem
a oriority and provide f*iit ilLeJto begin addressing the
backlog of projects tn'oueiJ th" titi1t*:;: congestion'
improve air qualitv, ..p;; It^t lttl'l'i*ry road safetv
improvements, and repar'r iocal streets and roads'.The longer we
neslect our transportatt"n tytit*' ttte more
'costly
and serious
ffiffiffi;;oio;"' w; ffi airord to Y'l:lY ronger
' PROPOSITION 1B IS FISCALTY RESPONSIBLE
.- lg-ro.;ts strict fiscal safeguards to protect taxpayers?
like annual t"ditt ;;;';;il-ttpottt io show how and
. Just like a mortgale on a home' Prop' 1B'allows us to
imorove our transpor#ti;^tyt;ilt& and pay for'it as
*a t'r"" it over the lons term'
. That's whv THE.'aALIFoRNIA TAxPAYERS'
ei3ocrerioN suPPoRrs 1B'
Yes on 18 is part ;i th" R"b*ld California Plan' Our
economic future and *i q"-rrirv Jlife depend on a reliable
transportation rvrr.rn,nutliJur" gooar unopeople effi ciently'
' We've got to start now
YES on 18' Suild n;w'roads 1ng hrghways' invest in
traffic safety, relieve """g-tti""' "td
improve mass transit'
lr
LARRY MCCARTHY'President
California TaxPaYers'Association
THOMAS V. M cKERNAN,President
Automobile Club of Southern California (AAA)
MICHAEL BROWN'Commissioner
California HighwaY Patrol
where funds are spent' :^ .rr ---^-.rr-
Bv issuisg bonds, Prop' lB *iJt p::1,*"immediate
funding to jump-stariit'ttp"tt"t19n projects arid allow
us to pay for them o*t itt"k^t 20 yiars' with existing
J,"ute t"u"nu es andwithout raising taxes'
Arguments printed on this pdge are the opinions ofthe authors and have not been checkedfot accuracy by any fficial agency'. * * * Arguments 123
PROPOSITION
1C 5g-U-S-INU AND EMERGENCY SHEL TRTRUST FUND ACT OF 2b;;.
OFFICIAT TITTE AN D SUMMARY* * *
Summary of legislative Analyst,s Estimate of Net. State cost of about $6.1. billion over 30 years to paycosts ($3.3 billion) on the bona; puy_ents of about
Prepared by the Attorney General
State and Local Government Fiscal lmpact:
?TP,trthe principal ($2.85 billion) and inrerest$204 million p., y.ur.
FINAT VOT ES CAST BY THE TEGISIATURE ON SB I6d9 (PROPOSITIOil IC)
Senate:Ayes 27 Noes 11
Assembly: Ayes.54 Noes 16
ANATYSI S BY THE T,EGTSTAIIVE' ANALYST
BACKGROUND
About 200,000 houses and apartments are builtin C_alifornia each year. Most ofihese housing unitsare built entirery with private dollars. some units,however, receive subsiJies fro_ f.A.rul, state, andlocal governments. For instance, the state p-"iar,low-interest loans ,
nonpro nt,,no **r';fl :ffi ,;",
j"Jr,"l#: f"T?l:construction costs. Typically, the housing must besold or rented to Californians with low incomes.
lther state programs provide fror"Uuy.rl";r;
direct financial assistance,to help *frfr1frc a.;;;;a downpayment.
241 fiileand Summary/Analysis * * *
while the state provides financial assistancethrough these programs, cities and counties areresponsible for the
housing. rn uoortio-,,1"ilT, :i*li":,Tf :il;local governments are respon.iUf. foi ;;;;infrastructure-related services to new housing_
such as water, sewer, roads, and parks.
ln 2002, voters approved proposition 46, whichprovided a totalof $2. 1 billion of general obligation
bonds to fund state housing prog*rnr. We eslmate
that about $350 million of the proposition 46 fundswill be unspent as of November t, 2006.
/'-'
I
HOUSING AND EMERGENCY SHETTER PROP
: TRUST FUND ACT OF 2OtO6. 1C
* * * ANATYSIS BY THE LEGISLAIIVE ANATYST rcoNrrxuror
PROPOSAL must reserve a portion of its' units for low-
income households for a period of 55 years.
This measure gives funding priority to projects
in already developed areas and near existing
public services (such as public transportation).
. Other Housing Programs (8255 Million).
These funds would be used to provide loans and
grants to the developers of homeless shelters
and hou'sing for farmworkers. In addition, funds
would be allocated to pilot projects aimed at
reducing the costs of affordable housing. .,
The funds would be alloqated over a number
of years. The measure provides the Legislature
broad authority to make future changes to these
programs to ensure their effectiveness.
FISCAL EFFEGT
Bond Costs. The cost to pay off these bonds
would depend primarily on the following two
factors:
. Paiment Period. 'The state would likely make
principal and interest paymqnts on the bonds
from the state's General Fund over a period of
about 30 years.
. Interest Rate. Usually, the interest on bonds
issued is exempt from both state and federal
taxes because the bonds are forpublic purposes.'This results in lower debt service payments
for' the state. Some programs proposed by
this measure, however, would not be eligible
for the federal tax exemption-resulting in a
higher interest rate. This is because the houging
programs provide funds for private purposes.
(We estimate this would be the case for about
60 percent of the bonds.)
If the federally taxable bonds were sold at an
average. rate of 6.5 percent and the remaining
bonds at an avorage rate of 5 percent, the cost to
the state would be about $6.1 billion to pay off
both the principal ($2.85 billion) and the interest
This measure authorizes the state to sell $2.85
bil'lion of general obligation bonds to fund 13 new
and existing housing and development programs.
(See "An Overview of State Bond Debt" on page 96
for basic information o4 state general obligation
bonds.) Figure 1 (see next page) describes the
programs .and the amount of fuuding that each
would receive under the measure. About one-half
of the funds would go to existing state housing
programs. The development .programs, however,
are new-with details to be established by the
Legislature. The major.allocations of the bond
proceeds are as follows:
. Development Programs ($1.35 Bitlion). The
measure would fundthree newprograms aimed at
increasing development. Most ofthe funds would
be targeted for devblopment projects in existing
urban areas and near public transportation. The
programs would provide loans and grants for a
wide variety of projects, such as parks, water,
sewage, transportation, and housing.
. Homeownership Programs (8625 Million). A
number of the programs funded by this medsure
would'encourage homeownership for low- and
moderate-income homebuyers. The funds would
be used to provide downpayment assistance
to homebuyers through low-interest loans or
grants. Typically, eligibility for this assistance
would be based on the household's income, the
cost of the home being purchased, and whether
it is the household's first hcime purchase.
. Multifamily Housing Programs ($590 Miltion).
The measure also would fund programs aimed at
the construction or renovation of rental hoirsing
projects, such aS apartment buildings. TheSe ,
programs generally provide local governments,
nonprofit organizatiorls, and private developers
with low-interest (3 percent) loans to fund part
of the constr'uction cost. In exchange, a project
For text. of Proposition lC see page I 18.
***Analysis 125
PROP HOUSING AND EMERGENCY SHETTER
TRUST FUND ACT OF 2006.1C
ANALYSIS BY THE LEGISTAIIVE ANATYST tcosrrNunor
Farmworker housing
Pilot programs"
Hom.eless shelters
Low-interest loans and grants for developing housing for farmworkers.
\
Grants and loans for pilot projects to develop housing at reduced cbsts.
Grants for developing homeless shelters.
$r35
100
50:
$285
Low-interest loans for housing developments for lpw-income renters.
Low-interest loans for housing projects which also provide health and
social services to low-income renters,
Low-interest loanSfor housing projects which provide housing for
homeless young people
Homeless youth
$590
50
$345
195
Multifamily housing
Supportive housing
Variety of homeownership programs for lowincome households.
Deferred low-interest loans up to 6 percent of home purchase '
price for first-time low- or moderate-income homebuyers.
Grants to local governments which reduce barriers to affordable housing.
Funds wduld be used for hombbuyer assistance.
Grants tq organizations which assist low- or moderate-income households
in. building or renovating their own homes,
$625
Self-hel p construction 10
Local governments L25
Low-inbome households
Downpayrfi ent assistance
$2e0
200
Development in
urban areasu .
Developm.ent near
publ ic transportation'
Paqksu
Grants for various projects-including parks, water, sewer, transportationl
and environmental clean up*to faci I itate,urban " i nf i I l " deveiopment.
Grants and loans to local governments and dBvelopers to encourage more
dense development near public transportation.
Grant funding for parks throughout the state.
300
$850
$1,350
200
Amount
{ln Millions)
Tota I $2,850
Proposition 1 C: Uses of Bond Funds
26lAnalysis***
(
'i^
.i
HOUSINGAND EMERGENCY SHEITER PFqP
TRUST FUND ACT oF 2oo(). 1C
* * * ANATYSIS BY THE LEGISTAIME ANAIYST tcoNTINuIuI
($3.3 billion). The average paymentwould be about
$204 million each year. t'
Ad.ministrgtive Costs. The Departrhent of
Housing and Community Development and
the California Housing Finance Agency would
j
experience increased costs' to administer the
varlous housing and urban development programs.
A portion of the programs' allocations probably
between $100 million and $150 million of the
total bond funds-would be used to pay these
adminishative costs over time.
\
\
***Analysis 127For text ofProposition lC see page 118
PROP HOUSING AND EMERGENCY SHELTER
1C rRUSr FUND ACr oF 2oo().* * *
ARGUMENT IN FAVOR OF PROPOSITION 1C
YES on Proposition lC will provide emergency shelters for
battered women,' affordable homes,for seniors ahd low-income
families, and shelters with social services for homeless
families with kids. That is why Habitat for l{umanity, AARR
and California Partnership to End Domestic Violenc6 strongly
urge you to vote YES on Proposition lC.
Importantly, this measure will be funded out of existing state
resources without raising taxes.
Many of our communities face severe problems of housing
affordability, homelessness, and domestic violence. Over
360,000 Caiifornians are homeless every night.
Last year, 5,108 women and children were turned away from
domestic violence shelters because they were.full. Housing
affordability for working families in California is at historic
lows.
Safe shelter is fundamental to a. decent life. YES on
Proposition 1C will:. Expand the number of shelter beds for battered women and
-homeless families with children.. Provide hoqping for homeless foster youths.. Make security improvements and repairs to existing shelters... Provide clean and safe homes for senior citizens anil low-
income families.
Additionally, Proposition lC helps working families afford
homes and provides accessibility improvements to apartments
for disabled Californians.
Proposition lC also creates 87,000 jobs and helps improve
the state's economy.
Allows Seniors to Live Independently: This measure allows
seniors to live at home without tlie fear ofbeing institutionalized
in a nursing home.
Helps Battered Women: "Most cities in California don't
have adequate shelters for wonen and children who have
be6n beaten and abused. Proposition lC begins to fix this
bad situatisn.' -California State Sheriffs Association
' : Independent Audits and Accountability:
"This measure requires independent audits,,limits
administrative expenses, and contains strict accountability
provisions to .ensure the funds are used as promised."
-California Chamber of Commerce
Helps Foster Youth: "Tragically, 65% of foster youth are
homeless on the day they leave foster care. Proposition lC will
help them find stable homes." -l{s6ss 4 California
Critical Need for Housing and Emergency Shelters:
"Proposition lC provides strelter for those who rieed help the
most-battered women, homeless families with children, and
disabled seniors." -Habitat for Humanity, Sacramento
Yes on lC: Part of a Long-Term Plan to Rebuild
California
Proposition lC is part of the Rebuild California Plan, which
uses the taxes we're already paying to build the roads, housing,
schools, and water systems we need to sustain our economy and
our quality of life for the long term. Please $upport the long-
term plan to rebuild California by voting Yes on 1A, lB, lC, lD,
and lE.
To learn more about hory this plan will benefit you and your
community visit www. ReadForYours elf.org.
Proposition lC provides shelters for our most vulnerable
Californians: the elderly, disabled, homeless families, battered
women and children. Please vote Yes on lC for emergency
shelter and housing relieflvithout raising taxes.
CH ERYI KEENAI{, Executive Director
San Diego Habitat for Humanity
MARIVIC MABANAG, Executive Director
California Pattnership to End Domestic Violencb
TOM P0RTER, State Director
AARP
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1C
Proirosition lC is fiscally irresponsible. lC grows bureaucracy
with almost $3 billion in borrowed money, burdening everyone
with debt to benefit a small number of people selected by
government, includin$ financially eligible illegal immigrants.
In their "yes" argument,.lC's backers claim the bond would
be "funded out ofexlsting state resources without raising taxes,'n
Sadly, there is no such thing as free money.
When California sells bonds, what is really happening is that
the state is going into debt in your name. This debt gets repaid
at abgpt two dollars of principal and interest for every dollar
borrowed.
Debt repayment has the top priority in government
spending. So, money spent to repay bonds means budget cuts
for education, roads, Medi-Cal, levee repair, prisons, and
water projects. Or, even less money for tai cuts.
More debt = less money forprioritids. And, less money for
priorities = pressurq to raise taxes on all Califurnians.
Debt should be used sparingly to build long lasting projects
such as roadS, bridge$, dams, schools, and universities.
ll
Builders build homes, not governmeht. Fees, regulations,
and government interference make homes unaffordable in
California.,Freeing builders to build is the best affordable
housing program-and, it costs nothing!
Adding more debt to our state's credit card hurts ALL
Californiins. Proposition lC would add $600 of debt and
interest payment obligations on every California family of
four. That's $600 that could be returned to the people in
lower taxes, or spent on roads and schools.
' Be responsible: vote "no."
ASSEMBIYMAN CHUCK DrV0RE, Member
Assembly Budget Committee
Bltt IE0NARD, Member
California State Board of Equalization
MIKE SPENCE; President
California Taxpayer Protection Committee
28 I AfgUmentS * * * Arguments printed on this page are the opinions of the authors and have nor been chegkedfor accuracy b;it any fficial agency.
f--r
HOUSING AND EMERGENCY SHETTER PROP
* * * rRUSr FUND ACr oF 2006. 1C
ARGUMENT AGAINST PROPOSITION 1C
Proposition lC would add almost $3 billion in new
government debt and expand bureaucracy, but it Won't make
housing affordable in California
Sacramento politicians placed Proposition lC on the ballot
at 3 in the morning. Why did they vote in the middle of the
night with little debate and no ovbrsight? What were they
trying to hide?
Proposition lC won't make housing more affordable for
the average Californian. What it will do is grow government
and force the average California family of four to pay over
$60.0 in debt and interest while INCREASING PRESSURE
TO RAISE TAXES.
What will $2.85 billion of new government borrowing
buy? In a state of 37 million people with over 12.2 million
horising units, not even a drop in the bucket. Instead,
Proposition lC will empower bureaucrbts to dispense cash
to a select few who meet the government rules and are lucky
enough to be chosen to get the money borrowed in your
name.
It's true thht only 14 percent of families in Califorriia
can now afford the median:priced home. But, government
itself is to blame for this problem. More than half the. cost
of a home or apartment rent in California iS due to high
taxes, overregulation, environmental lawsuits, fees, and
government interference in the free market-all of which
doubles the high cost ofhousing.
. So, what do the politicians propose? Their solution:
another government program that allows affordable housing
only for the lucky few who cqn get their hands on your
m.oney.
The true way !o make housing affordable again in
California is to bllow builders to build homes and
condominiums and apartments and then allow people to pay
to live in them-without the goverflment telling everyone
wtpt to do and how to do it.
Instead, the text of Proposition 1C reads like the failed
government housing programs of the past, with references
to, "target population," 'lHousing Finance Committee,"
"supportive housingj," "operating subsidies," and "pilot
programs." Along with millions of dollars for bureaucracy
and even $400 millionfor parks that house no one at all!
One last reason to vote 'ono" on Proposition lC: we can't
afford more debt. For every dollar we borrow, we and our
children will hav.e to repay that dollar plus a dollar in interest
costs. That means the average California family will have to
pay more than $600 in additional taxes over the life of this
bond, half of which will be .to pay the roughly $3 billion in
interest fees alone.
V6te "no" on Proposition IC. We can't afford it, and it
won't make housing more affordable in Califurnia.
For more information, please visit Assemblyman Chuck
DeVore's website at: www.NoProplC.com or email him at
NoProplC@aol.com.
ASSEMBTYMAN CHUCK DeV0RE; Member
California State Assembly
I
I
i
j
I
i
1 REBUTTAL TO ARGUMENT AGAINST PROPOSITION 1C
,Yes on Proposition 1C makes shelters and homes available Orange County Business Council
to battered women, seniors, homeless children, low-income League of Women Voters
families, and former fostel youths. It won't solve all of these Foster Youth Alliance
problems ovemight, but it is an important step forward. Vietnam Veterans of California
Proposition_lC Ui_ll not raise taxes. The measure will be Proposition lC is a fiscally responsible part of the Rebuild
paid fo-r qrt of existing state resources. Just as important, Califoinia Plan, a long-term plan to build ihe roads, housing,
Propositioh lC requires independent audits to protect schools, and flood-coirtrol systems we need for California;i
taxpayers and ensure ,shelters and homes are built as future.promised. Yes on Proposition lC addresses problems we can't afford
This measure is the result of years of planning by experts to ignore. It will provide clean ahd safe acco--odations for
in the problems of homelessness and domestic violence, as seni-ors, shelfers for homeless families, and secure homes for
well as the housing crisis facing the el4erly, fainilies with battered women. Please help California take a positive step
children, people with mental illness, and veterans. forward by voting Yes on Pfoposition lC.
That is why leading California organizations have
endorsed Proposition lC, including: HANK LACAY0, President
Habitat for Humanity, San Diego, Greater Los Angeles, Congress of California Seniors
AAfrf;
sacramento. PETER GAMERoN, pry1i{g-nt
congress of california seniors :t::T: veterans of california
Calilornia Partnership to-i"Abo-.rtic Violence I4l.!Vq MABANAG, Ex{utlv.e Director
California Chamber of Co-*"r"" California Partnership to End Domestic Violence
Arguments printed o4 this page are the opinions ofthe authors and have not been checkedfor accuracy by any fficial agency. * * * AIgUmentS I 29
PROPQSITION KI N D E RGARTEN-UN TVE RS ITY PUB LIC E DUCATION
FACITITIES BOND ACT OF 2006.1D
OFFICIAL TITLE AND SUMMARY* * *Prepared by the Attorney Oeneral
KI NDERGARTEN-U N IVERS ITY
i;ii'Brld Eoubliirdr,i'FAcriiirEs B0ND Acr 0F 2006.
'. This ten billion four hundred sixteen million dollar ($10,416,000,000) bond issue will provide needed
funding to relieve public school overcrowding and to repair older schools.. It will improve earthquake safety and fund vocational educational facilities in public schools. Bond
funds must be spent according to strict accountability measures.. Funds will also be used to repair and upgrade existing public college and university buildings and to
build new classrooms to ascommodate the growing student enrollment in the California Community
Colleges, the University of California, and the California State University.. Appropriates money from the General Fund to pay offbonds.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
. State costs of about $20.3 billion to pay offboth the principal ($10.a billion) and interest ($9.9 billion)
on the bonds. Payments of about $680 million per year.
FINAL VOTES GAST BY THE LEGISLATURE ON AB 121 (PROPOSITION 1D}
Senate: Ayes 29 Noes 8
Assembly: Ayes 58 Noes 12
ANALYS IS BY THE TEGISLAITVE ANATYST
BACKGROUND
Public education in California consists of
two systems. One system includes about 1,000
local school districts that provide education from
kindergarten through grade 12 (*K-12") to about
6.3 million students. The other system (commonly
referred to as "higher education"). includes the
California Community Colleges (CCC), the
California State University (CSU),. and the
University of California (UC;. These three higher
education segments provide education beyond
grade'12 to a total of about 2.1 million stude4ts.
K-12 School Facilities
Through the School Facility Program (SFP),
K-12 school districts apply for funding to buy
land, construct new buildings, and modernize (that
30 I Title and Summary/Analysis * * *
is, renovate) existing buildings. A school district's
allocatioq is based on a formula. The formula
considers the number of students b district expects
to enroll that cannot be served in existing facility
space. The SFP requires the state and school districts
to share the'cost of facilities. For new construction
projects, the cost is shared equally by the state and
school districts. For modernization projects, the
state pays 60 percent and school districts pay 40
percent ofthe cost. Ifa school district faces unusual
circumstances, however, itmay apply for "hardship"
funding from the dtate to offset its local share of
costs.
Major Funding Sources. As described below,
funding for school facilities comes mostly from
state and local general obligation bonds. (See 'An
Overview of State Bond Debt" on page 96 for more
information on these bonds.)
''
-
o* orRcART E N-u N rvE Rs ITY- Pu B LI c ED-ucATr o N P Ro P
rAclllrms^soNo Acr oF zboo' 1D
For text ofProposition lD see page 120'
PROP
ANALYSIS BYTHE tE GISTAIIVE ANALYST
1D
KIND E RGARTEN_UN IVE RS ITY PUB tI C E DUCATI ONFACILITIES BOND ACT OF 2006.
. Gtfts and Grants.In recent years, CSU and UCtogether have received more ,frun gf OO millionl*lull' in gifts and grants for.oirt uction offacilities.
. UC Reseorch Revenue. The UC finances theconstruction of some new research facilitiesby selling bonds and pledgi"g tu;;;" researchrevenue for their repayment. Currently, UC usesabout $130 million ayearof ,"r;;;;;revenue topay off these bonds.
PROPOSAI.
(CONTINUED)
available to retrofit facili ties likely to be unsafeduring an earthquake Districts would be requiredto pay 50 percent of new construction andearthquake-safety projects
This measure allows the state to sell $10.4billion of general obligation uono, for K_r2school facilities ($7.3 billio"l
"rJfrrgher educationfacilities ($3. I billion).
K-l2 Schoot Facilities
As shown in Figure l, the g7.3 billion forK-12 school facilities ir'd;;d;fed for seven. types ofprojects. The underlying"r.qrir.ments andtunding formulas for four "f ii"rJ projecr types(modernization, new ronrtru.tioi,-.t u.r., schoolfacilities, andjoint_use projects) rvouiO be based onthe existing SFp The oth"i ,frr.r ryp.s of projects, (overcrowded schools, career ,."frrii.n facilities,and environment_friendfy prqects) would be newcomponents of the SFp.
Modernizution ($3.3 Biltionl. These monieswould be for the modern jzationof oi.ting schoolfacilities. School ai_s.tricts,r9ufJ U,,.n"O.O to pay
lO.nelcelt of project costs (unlerr-rfr.i qualif, forstate hardship funding) . u
New Construction ($1.9 Billion). These monieswould cover various costs associated with buildingnew facilities, including site u;;i;i"r, project
,O,..
ttn,^:l*ineering, constructi on, and inspection.Up ro $200 million of the Sf .q iiilion would be
earthquake-related
programs.educationmedicalforavailablemillion$200
ng.retrofittiforavailablemlonisto$2ooUpb schools.hiehofsmallcreationthepromotetofu ndingasincentive combinednisam0utwothesefromavalableistonmiupto$2ooofAtotal
Modernization projects
New construction projects
Severely overcrowded schools
Charter schools facilities
Career technical facilities
Environment_friendly projects
Joint-use projects
Subtotal, K-12
Higher Education
K-12
($7,329)
($3,087)
Community Colleges
University of California
California State University
Subtotal, Higher Education
$s,3oo,
1,900u,b
1,000
500
500
100
29
Amount
(ln Miltions)
$ 1,s07
gg0.
690
FIOURE I
$r0,416
Total
Uses of Bond Funds
Proposition I D:
32lAnatysis***
state hardship funding).
(unless they qualify for
,
KNDERGARTEN-uNWERsIrYPuBtl-cl?ru:f
to*PROP
FACITITIES BOND ACT OF 2006' lD
Retief Grants for lvercrowde.d.
Schools
rll Bitlion). As a condition of receiving one of
ffiJ;;"t t-scr,oor districts would be required to
ttpi"t? n"n"Ufe classrooms with newly constructed
p-il.** classrooms' remove porlirbl3 classrooms
i* ou.rrrowded school sites' andlgduce the total'
il;;f ;ortable classrooms within the district'
Aswithothernewconstructionprojects'districts
*oofO be required to pay 50 percent of project
.""tit. u"0., iir. p,og'u; definition of overcrowde4
iltttt'ilo0 ;"1;t (or 20 percent of all schools)
*ould b. eligible'fo1 funding'
Career Technical Education Facilities ($500
Mitlion). The measure also funds a new facility
;";;;;;
-Jrrigntd to enhance educational
ipp?"*fti., fo. students interested in technical
careers'Grantswouldbeprovidedtohighschools
unJ iorur agencies ttrai trbve career -technical
ilgt"*.The grants would be allocated on a per
;;;;;. i""t basls, with a maximum of $3 million
for each n * .on,*ction project an{ $1'5 iliillion '
;;;-elc*tr ;;dlrnization project' for pottr tvpes of
Lt.n", ,fr. required local contribution would be
il;;; of project costs' Given'the program's
requirements, approximately 500 school districts
i;i;;;:ilf or ail districts) would be eligible for
;;* construction and modernizaiiol eranis"-ln
addition, about 25 local agencies would be eligible
***ANAI]SISBY THE LEG I S LAIIIVE ANAIYST. (coNrl NUED)
projects.
receive grant funding if their facilities included
il;;; iio materi*I mut promoted the efficient
use of energy andwater, the maximumuse ofnatural
;;;G; d; use of recvpled materials' or the use
"F
u."iuits conducivs to teaching and learning'
rntributions would be requiredThe same local co
dernizationut-fot other new construction and mo
Jointtlse Proiects ($29 Million)' These morues
*J;;. availabG for both constructing new facilities
*J r.*ttnguring existing facilities for a joint-use
numose. Joint-use projects include gymnasiums'
i*rtJ;t,.ttilat*"rucilities,andteacherpreparation
ililiil that are located at a schogl. but 'used
for
joint schooVro-m*ity or K-l2ihigher education
purposes. Under such arrangements' the school
iiroirt and joinluse partner share the 50 percent
local mdtching requiremgnt
Higher Education Facilities
The measure includes $3 ' 1 'billion to construct new
b"tld*gt and related infrastructure, alter existing
Uuiiii"E , and purchase equipment.for use in these
ioiiii"E"rotthe state higber idggation segments' As
;il."i *rt*t, the mJasure allocates $1'5 billion
i""ccc, $aqo *iltiott to uc' and $690 million to
CsU.TheGovernorandLegislaturewouldselectthe
,fe"in" projects to be funded by the bond monies'
for modernization grants'
CharterschoolFacilities($500i[ittion1.
These monies would be for new-construction and
| ;;";;;on of charter school facilities' (Ch1ter
.schoolsarepublicschoolsthatareexemptfrom
I ;t"tt;;;;;itements in exchange for adhering
to a local- or
"'t'-upp'oued
charter') A 50 percent
iorut *"t iUution'would be reqtiired'
Enviro nment-Friendly l:oi tbu ($ I 0 0 Million)'
r Thes. *o,ti"' *ootdbe provided as special incentive
I grants to promote certain types of environment'
il.tJrv f;Jiit*' For example' districts eould
FISCAL EFFEGTS f
Thecostsofthesebondswoulddependoninterest.
rates in efect at the time they are sold and the time
neriod over which tftty *t repaid' The state would
iri..rt -"r;; principat-and interest payments from
til. Jt""t Gen"rafFund over a period of about 30
v*^. ii,tt" bonds were sold at an average interest
rate of 5 percent, the cost would be about $20'3
tiiii* to pay offuoitr prirtcipal ($10'4 billion) and
i",.t*t(Siq."g uilion;' the average payment would
be about $680 million Per Year'
For text ofProposition lD see page 120'
***AnalYsis 133
PROP
1D
KI N DE RGARTEN - U N IVE RS ITY
PUBLIC EDUCATION FACIL'TiTS BOND ACT OF 2006.* * *
Over a million *"d:11: are trying to learn in schools with' at least TSyo more,r1d_:I: thun,ih;.y";;;;lesigned for. lDwill begin buildins enough ,"t ooir,ro'iiui iur children canr.":y: lh: _qual ity-educat'io,, ffi j#r'uJ" "'
PROP ID INVESTS IN:.
9:::,:y:lion of appr^oximatery 6,500 new K_12 \
classrooms and 3.000 commuirity
"ott"g; ,hrrroom.
$ep_ajling 31,000 ciassrooms. rlultdlng science. engineering labs, and classrooms. Providing 3,000 vocational education facilities
Y isit Re a d Fo ryou rs e lf, o r g for a l ist m f O pr";.rtr.ID IS SUPPORTED- BY EOTH" "C'OVBNNONSCHWARZENEGGER -ANb^ frV'.'oeuocRATICCANDIDATE FoR covpir.Ion"pgTr"iNcELIDES.
L":j",:^rl_f both parties ,lq"g *iit'"Ouiurion and civicorgaxizatrons all.agree investinE in;;; kioJ .o"""ii"i i, n"most rmportairt thins we can ddto i;ilil tr,!ir-iriir.. '.'"vorE yES dN iri -"i;iil":*:',"
vocerioNa"fe*E rut?*,Uiyr#3frlf*s FoR
Please-don,t be fooled into votipg for this bond becauseyour local school needs help. U"rlrifr*f. gJt nottring fromthe last statewide tono, anitnil;jiffi;;"#ing from thisone! This bond reouires 50% ;";;ffi; i,ini. rro, to"utdistricts. Unless vou t;ve.in a wealthy d;#;; with surpluscash to supply th! matching ru"ar, vi,ri'rrtlot, *ilt n"u",see a penny from this bond_but v"" *iil L. ,.quirea;;ayhigher taxes for the next :O y.-riir-tili#;;'
california is facing. the. most ,"urr. finunciar crisisin its hisrorv. our crefiit r"iirglr ,rr"';;ril the nation.The Legislature has squunoerEd 1il;;;;ility to buildnew schools with the aitounding 2l-p##;rowth in taxrevenues over the past three yeari.
The results of this finq19ial mismanagement arestaggering. For decades, we will le i;;; pay highertaxes just to pby back current a"u. iJ"vt-sc'hoolchildren
vorE yES oN
'?_yIN_EFD ro TNVEST rN ouRcH ILDREN'S EDUCATior.r'p""Fo i X ;'l"l
is1iT$;%?Y,ffi BHFh,,"Fji';teJw*6^$
1D provides the funding to rnuf." lu, schools earthquakesafe, reduce overcrowding]opaate ou, s";;il for the iatesttechnotogy, build new, ficiliii;;- f# ";;fi;ar education,
AXi hlilf"it[n1;?: tdr ;;6,il" ai J,"Ji.",i. s wh ich ruei
VOTE YES riN tD: MAKE OUR SCHOOLSEARTHQUAKE SAFE
1T?L!:i'i*.H:?fi tnJfi illl Hsl ;:sar:HlJl fff; j:$:and many others on ""ti"g.;;tril ",liia ,t.u.turutupgrades to be earthquar<e sare.
VOTE YES ON iN: RBOUCE OVERCROWDING INOUR SCHOOLS
, Every dollar must be strictly accounted fcby-proj6ct u"rl,' riitl independent
_ state anf i#l,Tr.T:'Misuse of funds is a crime, punirfraUi" OV ilprisonment.VoTE YES oN ro: eonouffi.'oiloiilc FUTURECalifornia,s future cannot.wait. The.best way to grow
ff r;'?#'t'"*"ft qT*,"}i"}iiji"}*ffifacilities to train ourto build the commur
facilities they need.
Parents, teachers. and,California,s leaders agree that weneed ID to provide; q*[ty piir'ii" .ffiil;, to make ourschoolchildren safer iri the event;f
"ri.lrtfiquake, and to
ijt;ffi:i*rnity colleges;il;#,ffiill't'J,i.prou. th"i,
YES ON lD: PART OF A r r)\T/:.r,EDrREBUILD CALIFORSAOF A LONG-TERM PLAN TO
Proposition lD is nart of the Rebuild California plan;which uses the taxes -:.::^lll_"li,rp"vii!"r* rd the roads,
lgy_r1ng, schools, and warersy.t.irn, rv"i""jio sustain our.roj-9T{ 1ld our quality orrh roitrre6;;.;:-"rs'. vu,
r":,8:[R"",'lD cAiIFoRNIA PLAN;?* oN rA, rB,
BARBARA E. KERR, president
California Teachers Association
GE0RGE T. CAPIAN, president
California Community College Board of Governors
PAMEIA T. J0HNSON, Chair
Coalition for Adequate School Housing
will still be pavins for this bond long after their ownchildren trave graau"ateat rvlr- orl'
At a time when the G^ol^"Inot and the Legislature arestru_ggling .r9 rrgqv tle^ $l0aijs8,fti,,;ft T previously_approved debt, this $10,416,0b0,0b0 b;;; 'would
dig usmuch deeper into a financiat i;"1;. i";p"";; iin m forcedto pay back more than twice tfr" umolini L*rowed, due tocompound interest and the cost of Uwyer;, W;lj SG;;;;traders, and state bureaucrats.
Please VOTE NO on proposition lD. Tell Sacramentopoliticians to make school .5"rir*ii"iai!i p.iqrity forexisting tax revenues.
lHg.llAS. N. HUDS0N, Executive Directoruallrornla I'axpayer protection Committee
ARGUMENT IN FAVOR OF PROPOSITION 1D
REBUTTAL TO ARGUME NT IN FAVO R OF PROPOSITION 1D
34IArgumeirts***Arguments printed on this page are the opinions ofthe aurhors and have not been checkedfor accuracy by any fficiar agency.
NST PROPOSITION 1D
ARGUMENT AGAI
**
term fixes?
construction'"
" KINDERGARTEN-uNrvE-RsITY lY{
* pUBrrC EDUCATi.N FAclrirtEs B.ND ACT oF 2006' LL)
paj-as-]ou:$o basis?
. -o cdstlv.It is a $10.4 billion education
o"IiioriiJ'iil{"'L?t
j$:;tf ffi[H"-''e":{"itt'"uono
i;""rT"u"""Ti6.+ uilioti Cun *t reallv afford this?
While education is important' it is not tlie only priority we
need to worrv abbut' \i;;;;; i; 9id yilh other problems
including holding d"; e;iif-tia's debt and borrowing'
And. there are more i'mportant things to spend money on
ffi;' ;; ;"""ti"n"r J;;il facilities'. energv efficiencv'
and seismic saretv upJraG' ttt uU*t time we said No to
more and more education spendlng'
Vote NO on ProPosition 1D'
wrr[lAM SARACINO,Member
Editorial Board,California Political Review
Prop. lD invests in:
aonroximatelY 6,500 new
3,000 communitY collegeConstruction of
classrooms and
K-12
classroomsVOTE YES ON lD' HOW CAN WE AFFORD NO-T TO
ruvidr-rNbuR scHools?
Few things,are more importu$ fot our children and our
J;;tih;"to invest in education'
lD is the right sotution to make our schools earthquake
safe and build more "h;;-";;;ielieve^overcrowding
for
our children. It will uito tt"fp our^ state e:o1omy grow It
doesn't bite off more't'ui *" [un ufford !o do right now' and
tl""lffi;iling rot*tt ruture that is vitally important'
," 1;;i:li;o.'ii" '"ur
results for our kids'
Our community tofftg"* afso giverl^rapidly growing
student population tfte'tfiiit they-need to succeed in the
workforce" w. tun*i'';iiord i" shortchange them-
A;iii;;#t future depends on their success'"-il;;. why tD has gained lh: TlL:t.from parents'
teachers, seniotso Uu'ioE" and taxpayer groups' and a
;-tpari*;t grouP of the Legislature'
.
The Californiu fu*puytl"' Association say.s' "Proposition
lD is a fiscally '"'po'l'iutr""
*ffihnun"" school repair and
. Rebair of 31,000 classrooms
.ii,inoG,ei"t",.'?ii:.;"Ji:t j:Hi"Ti":1ffi#*'. Providing 3,000 vocz
Vote Yes on lD' I"veJ i;-';t ct-rlldre'n's future by
investing in our t"rt"iTt toAry e Utiettt'-$ghly skilled
student population t"d;; i;lif;nia a stionger; better place
to live for all of us'
BRENDA DAVIS,' President
California State PTA
TARRY McCARTHY'President
California Taxpayers'Association
WITLIAM HAUCK'President
California Business Roundtable
REBUTTAL TO ARGU MENT AGAIN ST PROPOSITION 1D
Arguments printed on this page are tlrc opinionls of the authors and have not been checkedfor accuracy by any fficial agency' ***Arguments 135
PROPOSITION
1E
DISASTER PREPAREDNESS AND FTOOD PREVENTIONBOND ACT OF 2006
OFFICTAT TITLE
DISASTER PREP
AND SUMMARY* **Prepared by the Attorney General
AREDNESS AND FTOOD PREVENTION BON ACT 0F 2006.D
This act rebuilds and repairs California 's most wlnerable flood control strucfures to protect homesand prevent loss of life from flood -related disasters,including levee failures,flash floods, andmudslides.
a
Protects California's drinkihg water supply systemearthquakes and stbrms.
Authorizes a $4.09 billion dollar bond act.Appropriates money fro. tfr. C.".r"if""O to pay
by rebuilding delta levees that arcwlnerable to
offbonds.
AT VOTES CAST BY THE TEGISTATURE ON AB I40 (PROPOSITION I E)
Senate:Ayes 36 Noes I
Assembly: Ayes 62 Noes 9
summary of Legislative Analyst's Estimate of Net state and locar Government Fiscar rmpact:' State cost of about $g bilrion over 30 years to pay offboth the,princip"rrro., or,r;;;;;;l;($3'9 billion) costs on the bonds, iJyments of a6out $266 million per year.' Reduction in local prope{tv d;;+. orpot.nti"irv u. *"..;i.iriln oottur* annualry.'*11'1,:T1i*?#;t,,",fffi:*H";gl;;;*'iJiperateormaintainpropertiesorproje*s
FIN
ANATYS IS BY THE TEGISTAIIVE ANATYST
BACKGROUND
State Role. Multiple agencies at each level ofgovemment (state, federal, and local) have someresponsibilities for flood managoment. In addition,private entities own and op.rutJro_. flood controlfacilities. The state carries out a nu_il, ofprogramsdesigned to provide flood managernent. Some ofthese progru-r ur.r. operated airectty by the state,yhil: others provide grants to local agencies forsimilar purposes.
The- state is primarily responsible for floodcontrol in the Central Valley. As shown in Figurgl, the state Central Valley nooO .ont.t .yrr;;includes about 1,600 miles of tru.*, as well as
36 I Tiile and Summary/Analysis * * *
other flood control infrastructure such as overflowweirs and channels. The state directly funds thebonstruction and repair of nooJ- _anagementstructhres such as levees, typically *irf, u federaland local cost share. fo, appro* iiatety g0 percentof the levees in the Cent at Valley flood controlsystem, the state has turned over the operations andmaintenance to local governments (primarily localflood control districts), although ti'"-.tut. ,.,uin,ultimate responsibiliry for thJse i.;..r" r;J ,f*system as a whole.
Outside the Central Valley system, the state,srole in flood mana,;;ffi ;u,#i':::,T:il.?';::l?,:::ffi:":,:
***ANALYSISBY
rT /\' TT\ DDEVFNTION PROP
DISASTER PREPAREDNES S AND FLOOD PREVENT
BoND Acr ou 'oou' 1E
THE LEGIS LAf IVE ANATYST (coNrlNuED)
for flood control projects located throughout-the
state. For example, thu ttutt has Prwided funding
for the Santa Anu niut' Mainstem flood control
il; ,hu, ,Pu"' orange' Riverside' and San
Bernardino Counties' tn ttre Sacramento-San
i""o"it n*er Delta region (Delta).' as another
example, the state has no "Yt*l9T
role with
,.#i r" iocal levee construction or maintenance
il;;;;lt of Delta revees-au11t 700 miles-
)r. f""*"a outside the state system)' Because
a significant po'iio" of the, state's population
depends on water supplies that c:m: through the
Delta, there is " ;;il interest in the oontinued
operation of the Delta levee sl*em' Given this'
the state has provided financial assistance over
many years to locai flood control districts in the
Delta region to rehabilitate and maintain levees'
F:unding.In general, state flood management
nr;;;iuvt
-u"* n"ded from the General
Fun{ with some t"t of Uottd funds'-Since 1996'
the voters have authotized a number of state
general obligation Uota" of which-about $400
million has been allocated specifically for flood
management purposes' Mosiof these bond funds
for flood managomeni have already been spent'
State funding levels for flood management
t ui.
-lrur*O
zubstantially on a year-to-year
basis, largely atp""Oi"g on the^ availability of
c""*"ir""i and bond *9ii":.fot this purpose'
ior^-"*u-pft, since 2000-01' annual state
;ft;;; nooa manasement h-as laried
from
a low of about $6iliili'"n (2002-03) to a high
of about $270 million (2000-01)' In addition
to state flood management programs' local
;"";;"nts, includiig flood control districts
and other public *t ri agencies, operate their
own flood management programs and projects'
ffiatd;;;; local Programs comes from
various sources' rncluding property assessments
For text ofProposition 1E see page 125'
E
an4 in some cases, financial assistance from the
state.
A law passed earlier this year provides $500
*itiion from the General Fund for emergency
levee repairs and other flood management-related
costs.
The Department of Water Resources @WR)
has made rough estimates of the cost to repair and
"pltrA.
the Central Valley flood control system
and levees in the D;lt" ofietween $7 billion and
- Levee
- River Msndota O
Los Banos O
San Joaquin Biver
O Stockton
RloVlsta
Yolo BYPass-
Fsalher Fliv€r
CltY
Chicosacramonto
Biver
Not to Scale
HGURE 1
d Control SYstemCentral ValleY Floo
$12 billion.
***AnalYsisl3T
PROP DISASTER PREPAREDNESS AND FLOOD PREVENTION
lE BoND ACr oF 2006.
ANATYSIS BY THE TEGISLAIIVE ANALYST rcoNrrNunor
PROPOSAL
This measure authorizes the state to sell about
$4.1 billion in general obligation bonds for various
flood management programs. (See'An Overview of
State Bond Debt" on page 96 for basic information
on state general obligation bonds.) Figure 2
summarizes the purposes for which the bond
money would be available to be spent by DWR and
for grants to local agencies. In order to spend these
bond funds,'the measure requires the Legislature
to appropriatp them in the annual budget act or
another law.
Specifically, the bond includes about $4.1 billion
for various flood management activities, allocated
as follows:
. State CentralValley Flood Control System and
Delta Levees-$3 Billion. To evaluate, repair,
and restore existing levees in the state's Central
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
control system; and to reduce the risk of levee
failure in the Delta region through grants to local
agencies and direct spending by the state.
. Flood Control Subventions-$5fi? Million. To
provide funds to local governments forthe state's
share of costs for locally sponsored, federally
authorized flood control projects outside the
Central Valley system.
. Stormwater Flood Management-$3h|
Million. For grants to local agencies outside of
the Central Valley system for projects to manage
stormwater.
. Statewide Flood Protection Corridors and
Bypasses-$2 9 0 Mitlion. To protect, create, and
enhance flood protection corridors, including
flood control bypasses and setback levees; as
well as for floodplain mapping
FISCAT EFFECTS
Bond Costs. The costs of these bonds would
depend on interest rates in effect at the time they
are sold and the time period over which they are
repaid. The state would likely make principal and
interest payments from the state's Generai Fund
over a period of about 30 years. If the bcinds were
sold at an average interest rate of 5 percent, the
cost would be about $8 billion to pay offboth the
principal ($4.1 billion) and interest ($3.9 billion).
The average payment would be about $266 million
per year.
Property Ttrx-Related Impacts. The measure
provides funds for land acQuisition by the state
for flood management, including the development
of bypasses and setback levees. Under state law,
property owned by government entities is exempt
from propefiy taxation. To the extent that this
State Central Valley flood control
system repairs and improvements;
Delta levee repairs and maintenance
Flood control subventions
(local projects outside the Central Valley)
Stormwater f lood management
(grants for projects outside the Central Valley)
Flood protection corridors and bypasses;
floodplain mapping.
$3,000
290
300
500
Amount
(ln Millions)
FIGI'RE 2
$4,0s0Tota I
Proposition 1 E: Uses of Bond Funds
38 lAnalysis***
'r*--" , e -
Di sAsrER PREPARTDNE s s AND ti?R lT#T;i?: TflJ
* * * ANATYSIS BY THE LEGISLATIVE ANATYST tcoNrtNuror
.measure rgsults in property berng exqmpted from
taxalion due to acquisitions by gover4ments, local
governments would receive reduced property tax
revenues. Because'the measurq does not speciff
what portion of the bond funds will be used for
acquisitions, the impact on local property tax
revenues statewidp is unknown, but is potentially
up to several million dcillars annually.
Operational Costs. To .the exteot that bond
funds are used by state and local governments to
purchase property or develop a ney.flood control
projeot, lhese governments would incur ulknown
additional costs to operate or maintain theproperties
or projects.
For text ofProposition lE see page 125 f **Analysis 139
PROP
1E
!
DISASTER PREPAREDNESS AND FLOOD PREVENTION
BONDACT OF 2006. * * *
ARGUMENT IN FAVOR OF PROPOSITION 1E
YES ON PROPOSITION lE: PROTECT AGAINST
FLOODS, PREVENT OCEAN POLLUTION, SAFEGUARD
CLEAN DRINKING WATER
California conti4ually faces natural disasters-from
earthquakes and fires to floods and mudslides. Proposition
lE is critical to prepare for these natural disasters and ensure
we always haye enough cleaa water to meet our needs. '
YES ON lE: PROTECT HOMES, PREVENT LOSS OF
LIFE
Our nation learned a tragic lesson from Hurricane
Katrina-we cannot continue to neglect our unsafe levees
and flood'control systems. One catastrophic flood would
impact the entire state and disrupt the supply of clean
drinking waier to major cities.
Proposition lE expedites urgent projects to protect homes
and lives across the state:. Urgent repairs and essential improvements to levees and
flood control facilities. Increased flood protection for urbair areas .. Evaluation and repair of the current flood control system
i'Californians deserve to know that their homes and
families are protected from flooding, caused by levee failure
in the Central Valley, or flash flooding in Southern California
or coastal areas. Proposition lE is vital to the state's ability
to ensure flood safety throughout the state."-Lester Snow,
Director, California Department of Water Resources
YES ON lE: PROTECT OUR OCEANS AND OUR
SUPPLY OF CLEAN, SAFE DRINKING WATER
Outdated flood control systems can threaten drinking
water supplies, pollute streams, and foul beaches.
' Some cities rely on #ater mains and sewers more than a' century old that can fail at any time. Experts say that water
pressufe inside the pipes is often the only thirrg keeping
them from collapsing.' In 2001, sewer spills and overflows forced officials to issue
over 2,000 beach closings and health advisories. Spills
and overflows are generally .caused by overusecl and
antiquated wastewater systems.'
Proposition lE helps ensure that clean water is available
for all Californians all the time by providing funds to rebuild
out-of-date systems to,prevent pollution and safeguard water
sources.
YES ON IE: STRICT ACCOUNTABILITY AND NO
NEW TAXES
Proposition lE wont raise trixes to pay for these important
infrastructure improvements. Bi building safeguards now,
with current revenues, we can limit the impact of disasters
when they do hit, And, Prop. lE includes annual audits and
tough fiscal safeguards to ensure the money is spent wisely.
YES ON lE: PART OF A LONG-TERM PLAN TO
REBUILD CALIFORNIA
Proposition lE is part of the Rebuild California Plan,
which uses the taxes we're already paying to build the roads,
housing, schools, ind water systems we need to sustain our
economy and ouf quality of life for the long-term.
The Rebuild California Plan: YES ON lA, 18, lC, lD,
and lE
California's population will reach 50 million in the next 20
years-twice what our current infrastructure was designed
for-and it can't be rebuilt overnight. That's why we've got
to start now.
To learq more about how this infrastructure plan will benefit
you and your community, visit www.ReadForYourself,,org.
YES on lE: Clean Water, Flood Protection, and Disaster
Preparedness.
HENRY RENTERIA, Director
California Office of Emergency Services
MICHAEI L. WARREN, President
California Fire Chiefs Association
IINDA ADAMS, Secretary
California Environmental Protection Agency
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 1E
After reading Prop. 1F., it won't surprise you to learn that
the Legislature adopted it after 3 a.m. when they got tired of
arguing. They couldrizt agree ,on a list of projects or even a
list of priorities; they,could only agree that THEY WANT
MORE OF YOUR MONEY right away. How typical! That's
what this $4,090,000,000.00 bond is all abouti iaising taxes
to give Sacramento politicians a blank check based on vague'
promises that they won't waste our inoney this time. It's like
giving a drunk one more drink for the drive home.
Our legislators have been ignoring public levees for yearB,
Now, instead of allocating a small portion of our record-
breaking revenues for levees, they want to borrow money for
thirty years for repairs that will need to be repaired again
long before this bond is paid off. What will we do then?
This is aTAX INCRBASE. Taxpayerswillbe forcedto spend
over $8,200,000,000 to pay back ihis bond with interest!
At recegt prices, this proposal contains funding for
about 25 miles of levees, but California has far more than
2,000 miles of levees to maintain. Since this measure does
nothing to ieform our ctrazy spending practices arid policies,
we might not even get 25 miles of repairs. What is worse,
with politicians in charge of selecting the projects (not
hydrologists, scientists, and engineers), funding will be
based on political influence rather than critical need. This is
a recipe for disaster.
Please Vote "NO" on lE.
THOMAS N. HUDSOT{, Executive Director
The California Taxpayer Protection Committee
40 I AflUmentS *:* * Arguments printed on this page are the opinions of the atuthors and have not been checkedfor accuracy by any fficial agency.
f':
!
D r sASrE R P RE PARE D N E s s AN D*F i:R t"tST ;i:)PROP
1E
ARGUMENT AGAINST PROPOSITION 1E
We need strong levees and clean water, but Proposition
lE is the wrong solution. This measure is full of misguided
priorities and doesn't have any controls on funds. The most
important thing we can do is to make sure we have'enough
water fdr our growing population, but lE doesn't spend a
cent on that.
Prop. lE sounds good, but it means higher taxes for
projects that local and federal governments should already
be doing.
-Proposition
lE won't provide "Clean Water" to drink:
California's population is expected to grow to fiflyrrnillion
people in the neit decade. This will place an enormous qtrain-on
o.r..water supply. However, thii bond will hot provide
a single drop of diinking water for California's growing
population. It will not build 4 single water storage feservoir or
water treatment facility. Yet it will give hundreds of millions
to privatg organizations to spend-on their pet projects and lets
them use these funds for their own "administrative gosts."
-Benefits
local urban projects:
Rural California loses undel Proposition lE. State
taxpayeqs' mo+ey from these bonds will go to protecting
cities and their water supplies. These communities and their
lbcal governments should be paying for their own water
supply imprbvements. Local tax dollars should be used to
funa itrese projects, not state funds.
-Federal responsibility:
Instead of putting the state in more debt to pay for these
levee repair projects, our state should be demanding'more
federal funding..This is a federal responsibility. California
taxes are already high, and we shouldn't have to pay more
taxes to protect ourselves because the federal government
won't plan for disasters.
Fiscally irresponsible:
By taking on what are really local and federal
responsibilities, we are encouraging mismanagement from
all levels of government. And, lhey will expect taxpayers
to foot the bill down the road rather than.refocusing their
priorities.
,Californians must focus on our priorities:" While our economy is slowly recovering, approving
Proposition lE would be like taking out a loan.to buy new
'patio furniture when you canit afford to pay your mortgage
or rent. At the same time, this measure means less money
for other important priorities like education, health care, or
public safety.
The state can't take responsibility for every project in
the'state. Thesb projects should be paid for by the local and
federal agencies responsible for these public safety issues. If
we don't make them reprioritize their spending, our c.hildren
will continue to foot the bill for their short-sighted planning
and mismanagement.
Proposition lE is bad for families, bad for taxpayers, and
bad for California. Vote NO on lE.
THOMAS N. HUDS0N, Executive Director
The California Taxpayer Protection Committee
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 1E
Proposition lE is vitdl to California's disaster
preparedness-protecting lives and water supplies. It is our
iesponsibility to ensure that all Californians have access to '
safe, clean dririking water at all times. Yes on lE does that
without raising taxJs, and it leverages additional federai and
local funding.
WE CANNOT AFFORD TO NEGLECT OUR WATER
SUPPLY AND FLOOD PROTECTION SYSTEMS
' If we wait for others to fix our unsafe levees and flood
control systems, we are putting our homes, drinking water
supplies, and children at risk in every cornerbfthe state. By
building safeguards now, we can limit the impact of disasters
when they do hit. Yes on lE provides:
. Increased flood protection for urban and rural areas,
meaning a stable, clean water supply-. Repaired and improved levges... Updated flood control systems-to prevent failures that
can pollute our streams and oceans.
FISCALLY RESPONSIBLE
Proposition lE rrses the taxes we are already paying to
make these important infrastructure improvements. Utilizing
federal and local matching funds means we gan complete
more of these important projects in communities across
the state. Aid, 1B has important accountability standards,
including independent audits, to ensure money is spent.
wisely.
Proposition lE is part ofthe Rebuild California Plan. It will'
provide the flood protection vital to sustaining our economy,
protecting 6ur supply ofdrinking water, andpreserving our
quality of life for the long term.
YES on lE: Clean Water, Flood Protection, and Disaster
Preparedness for Our Future.
THOMAS A. NASSIF, President
Western Growers
LINDA ADAMS, Secretary
California Environmental Protection Agency
PETER SIIVA, Former Vice Chair
State Water Resources Control Board
Arguments printed on this page are the opinions ofthe aurhors and have not been checkedfor accuracy by any fficial agency. * * t AfgUmentS I 41
PROPOSITION SEX OFFTNDERS. SEXUATTYUOLEN T PREDATORS.
PUN I S HMENT RE S IDENCE RE STRICTION S AN D MON ITORING.
INITIAIIVE STATUTE.B3
OFFTCIAL TITLE AND SUMMARY * * *Prepared by the Attorney General
SEX OFFENDERS. SEXUAILY VIOLENT PREDATORS.
PUNISTIMENT, RESIDENCE RESTRICTIONS AND MONITORING.
INITIATIVE STATUTE.
. Increases penalties for violent and habitual sex offenders and child molesters.
' Prohibits reiistered sex offenders from residing within 2,000 feet of any school or park. t
' Requires lifetime Global Positioning System monitoring qf felony registered sex offenders.. Expands definition of a sexually vio'ient predator. - t
; Changes current two-year invoiuntary civil commitment for a sexually violent predator to an
indeterminate commitment, subjegt to annual reviewby the Director of Mental Health and subsequent
ability of sexually v'iolent predator to petition court for sexually violent predator's conditional release
or unconditional discharge.
Summary of Legislative Analysfs Estimate of Net State and Local Government Fiscal lmpact:
' Net state prison, parole, and mental health program costs of several tens of millions of dollars initially,
growing to a couple hundred million dollars annually within ten years.
' Potential one-time state mental hospital and prison capital outlay costs eventually reaching several
hundred million dollars.. Net state and local costs for court and jail operations are unknown
ANATYSIS BY THE TEGISLATIVE ANATYST
BACKGROUND history ofthe offender. There are about 8,000 persons
convicted ofa felony sex offense in California each year.
Of these, about 39 percent are sent to state prison. Most
ofthe rest are supervised onprobation in the community
(5 percent), sentencedto countyjail (1 percent), orboth
(53 percent)
$ex Offender Registration, Residency
Reqairements, and Monitoring. Currqnt law
requires offenders convicted of specified felony or
misdemeanor sex crimes to register with local law
enforcement officials. There are approximately 90,000
registered sex offenders in California
Current law bars parolees convicted ofspecified sex
offenses against a child from residing within one-quarter
or one-half mile (1,320 or 2,640 feet, respectively)
of a school. The longer distance is for those parolees
identified as high risk to reoffend by the California
Department of Corrections and Rehabilitation (CDCR).
Definition of Sex Offenses. Sex offenses are crimes
of a sexual nature. They vary in type and can be
misdemeanors or felonies. For example, distribution of
obscene material is a misdemeanor and rape is a felony
sex offense. Felony offenses are more serious crimes
than misdemeanors.
Punishment for Committing S * Offenses. Current
law defines thd penalties for conviction of sex-related
crimes. The punishment depends primarily on the type
and severity of the specific offense. Conviction of a
misdemeanor sex offense is punishable by up to a year
in county jail, probation, fines, or a combination of the
three. Conviction of a felony sex offense can result in
the same penalties as a misdemeanor or a sentence to
state prison for up to a.life term. The p6nalty assigned
by the court for a felony conviction depends on the
specific crime committed, as well as other factors such as
the specific circumstances ofthe offense andthe criminal
42 I Title and Summary/Analysis * * *
t
,EX OFFENDERS. sEXUALLyvrollNT PREDATORS. PROP
PUNISHMENT, RESIDENCE RESTRICTIONS AND MoNlToRlNG. 83
INITIATTVE ST TUTE.
*,* * ANALYSIS BY THE LEGI SLATIVE ANATYST (CONTINUED)
The CDCR utilizes Global Positioning System
tCpJi*"tf,"iing devices to track the location of some
sex offender. o" p*i"' Currently' this monitoring
is limited to about i,000 t"t offenders who have
il"."IJ.t in.d as high risk to tt^"*id y*t countv
orobation departmenis also use GPS to monitor some
sex offenders on Probation'
SexuailtyVintentPredators(SVP),Specifiedsex
offenders who are completing their prison sentences are
referred by CDCR t"
't"
i"i"n"-tent of Mental Health
(DMH) for screerung unO'evaluation to determine'V#il t*t meet the"criteria for an SVP' Under current
ffi; iv'p it o"nJ as 'oa person who has been
convicted of a sexually violerrt offense against two or
il'"r" ","i,*r;;; J;i"s a diagnosed mental disorder
l;d;;il;;;; u aung"' io the health and safetv
;ilfitt ttrat it is likelv that tt: o::1" will engage
in sexually violent "tit"inA
behavior'" Those offenders
who are found to *""t ift" *it eflaarereferred to district
attorneys' District u'to*ty'then determine whether to
nursue their commi*""'iry the courts to treatment in a
itate mental hosPital as an SVP'
Offenderd zubject to SVi proceedings are often
r##;"$-iuuric defendeis' while these court
proceedings u," pt"ding' offendett ..*ho have not
completed their prrsoi 'E*tnt"t
continue to be held
in orison. However, if an offender's ppison sentence
ii;,t; ';^ipr.,t;a
L ;' she maY be herd either in
;ffi;t"di o' io u 'tut"
mental hoslital' offenders
desisnated as SVPs by the courts are committed to a
.#;;ii*pi"r io' up to two.vears' An offender.#
bd^;;;;**tited bv the courts in subsequent court
proceedings
As noted above, state mental hospitals hold sex
offenders who have been committed- as- SVPs' State
ffi;idii;r"urto ttoto to'n" sex offenderswho have
."*pr.i.Jirt"it ptit"" tt*e1ces' lut a1e^still undergoing
SVPevaluationsorcommitmentproceedings"Ot.?f
June 2006, 456 sex offenders were being held instale
ffi;i"ffit h; "";itttnt bv a court as an SVP' In
addition, 188 sex off"odttt were being held in state
mental hospitals, and 81 were in county custody pending
iilffi;fiion of commitmentproceedings'
,,
PROPOSAL
Inetease Penalties for Sex Offenses' This measure
increases th" p""ultit'?o' specified sex offensqs' It does
this in several waYs' fn some cases:
. It broadens the definition of certain sex offenses'
For example, the
-"rntu"""
expands- the definition
of aggravat.O "J assault of a child to include
offenderswhoareatleastseve.nyearsoldgrttln
thevictim,ratherthanthetenyearsrequiredunder
current law'
. It.provides for longer Penalties. fll.snecified sex
offenses. fo' "*u-piE'
it expands the list of crimes that
;;d;;lir" ..nttntts in prison to inc]ud9 assault to
l"*"ii, rape dt'ring the corqmission of a first degree
burglary.
. It prohibits probation in lieu oiprisonfor some sex
' offenses, including 'poo'ul'up"
and lewd or lascivious
acts.
. It eliminates early release crpdits for
1^ome
inmates
convicted of "t'tui" sex offense:. qf"t example'
ffiil"i sex offenders who have multiple convictions
i"t tp*in"a felony sex offenses such as rape)'
. It extends; patole for specified sex offegders'
including habitual sex offenders'
Thesechangeswouldresultinlongerprisonand
p"tJl;t*s fo-i the affected offenders'
Finally, this measure increases court-imposed fees
currently charged to offenders who are required to
register as sex offenders'
Require GPS Devices for nesis!1e( Sac Offenders'
C"rr"iuUV *0"' this mcasure' i"d.*1dT]-:who have been
convicted of a felony sex offense that requires regisffation
and have been sent toli*t *""fd-Ue monitored by GPS
devices while on puJt and for the remainder of their
lives.
The CDCR would be authorized to collect
.fees
from affected sex offenders to cover the costs of
GPS monitoring' The-amount of fees collected from
individual of"na"t'-*o"fd vary depending on their
abilitY to PaY'
For text ofProposition 83 see page 127'
***AnalYsis 143
PROP
83 :l]( OFFENDERT. sEXUArry vrorENT PREDATORS.PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING.INITIAITVE STAIUTE.
ANATYSIS BY THE tEGISIATTVE A^{AIYST (coNrrNuED)
*,-!r*r, Wery Registered Sex Offenders May Live.'I'his measure bars ar
sex onbnder r.o^ rffi Tffi 1T'd;H, l"t':lT#":
l"lT:i: Ttb):l*r school -p"rr. a
","ration ofthisprovrslon would be a misdemeanor offense, as well asa parole violation for parolees. fne tonger cuff-ent Iawrestriction of one_hdf mile (2,6i0;;;i;, specifiedhigh-risk sex offenders onparole woutOremainin effect.In addition, the measure authorizes toJ go.r"r*"nt,to further expand these residen.y rrt i.ti-oi..
Stote prisoh Costs.This measure would increase the
l.tr-o:^l_*ulation, resulting i, " ,igrfiiant increasern pnson operating :ortl. In particular, l";risentences for sex offenders wluld .r*1, ir, ,orn"
::l "ry"d:rs being.senrenced to and remaining inpnsoll for tonger p.riog:,.resulting i;; l*go prisonpopulation over time.,This woulirJ;in costs ofunknown magnitude, but likely io fll" ,rr" tens ofmillions of dollars annually *J. n ffy i*plemented inless ttlan ten years. It-rs also possibre that this measurecould eventually result in significanruOiirionuf capitaloutlay costs to accommodate-rfr" io"r"*r'in rfrc inmatepopulation.
The measure also changes the standard for releaseof SVps from a state mental h"r;i;;i;r example,
_:*r*j law_generally requires OVtff io^""amine themental condition of a sex of"nO", eJch year. This
T"ury" specifically requires DMH, * p*
"r iii',annual review, to examine-wh.tt
", u i.r.oir Ueing hetOi1u r?Jg hospital as an SVp ,tiff _."triie deffnitionof an SVp, whether release i, i" ,t "-t.rt iiterest of theperson, and whether conditions could be imf osed at timeof release that would adequately protect thJcommunity.The impact of these
"hanges "ir;h;;;;lr of SVps isunknown.
Change SVp Law. This measure generally makesmore sex offenders erigibre for an svp"."r-it"l"i ridoes.this bv (t) reduclng fr";;;;; the numberofprior victims of sexually
"iot".rt otr"r"res that qualiSran offender for an SVp commirrr.ri,""i (2) makingadditional prior offenr.r,_;;;;-';. .""ur" crimes
;^olnlitted by a person while u juurnif"_..countable,,tor purposes of an SVp commitmeni. Th;";;;#also requires that SVps U" "or_-i-ttJi"rt" ffi;;a.state mental hospital for an *O.t"rri,n.d period oftrme rather than the renewable two_year
-commitment
provided for under existing d* ;. ;;;r curent law,once an offender had received u .o_ait_ant as an SVp,he or she could later bereleased no^l,"" hospital bythe courrs if (1) DMH aet"rmineJitreiffiOuuf shouldno longer be held or .e) rh. "ft;il; il;ffi;petitioned a court for release.
The impact on the prison population of requiring sexoffenders ro wear GpS dwice; i, ;;;i;"r. on the onehan4 GpS monitoring ,oufa in.rur";; il;i;;offenders who are iaentineA unJr"-ro_.d to prison forviolating rhe condition, or tn.ii;;;;". comminingnew crimes. On th9 other hand, dpS _onitoring couldact as a deterrent for some of""Aerc frJm committingnew violations or crimes, hence ..du;;; the likelihoodthat they return to prison. Wt ut.u".n"iiripact CfS doesharle,on
lefurns to prison will also uf."t pu.o6;*,and local law enforcement workl"J, ilO associatedcosts.
State parole and GpS. Monitoring Costs. Thei1tiative's prwisions r-eQuiring specified registered sexoffenders to wear GpS O*i.". it itJ * n*r. and for theremainder of their lives would ,.r"r, ir-
"Joli
i"r"i ,"So
Pt.cPl equipment, as well * f"; ,;;sion staff tohack offeriders in the community. These costs afe likelyto be in the several tens of millions of Coitars annuallyrilli" a fewyears. These costswouil;;"; about $100
Tlltl"" uTu?ly after.ren years, *ith;;;;; continuing torncrease significantly in subsequent yurr.-
-
Because the measure does not speci$z whether thestate. or.local governments would ie rerponrible formonitoring sex offende|1 who h; b; dischargedfr-om state parole supervision, it i, *;.;;;ether localgovernments would bear some of these tong+"r..or;^rl.::" costs likery would b" pdii;-";; by severalmillion dollars annually in'iourt'unOlurpl." f..,authodzed by the measure, though ,h" .i;;;';;;*,worsld largely depend on offenderJ;;-liry;; puy.
FISCAI EFFECTS
This measure would h1v9 a number of significantfiscal effects on 6tate and local ;;;;;";. The majorfiscal effects are discussed below.
441 Anatysis***
f- ' ^''
SEX OFF ENDERS. S EXUATLY VIOLENT PREDATORS.
PUNTSHMENT,RESIDENCERESTRICTIONSAN+'#HI]T1T.)I:
PROP
83
* * * ANATYSIS BYTHE LEGISTATIVE ANALYST tcoxrtNuror
. State SVP Program Costs. By making more sex
offenders eligible for SVP commitments, this measure
would result in increased state costs generally in the
following categories: ,
. Referral and Commitrnent Casfs- These costs are
mainly associated with screeriing sex offenders
referred by CDCR to DMH to determine if they
merit a full evaluation, performing such evaluations,'
and providing expert testimony af court commitment
hearings. This measure would increase these state
- costs probably by the low tens of millions of dollars
annually. These costs would begin to occur in the
initial year of implementation.
. State Hospitat Cosfs. State costs to staff, maintain,
and operate the mental hospitals could reach
$100 million annually within a.decade and would
iontinue to grow signihcantly thereafter. These costs ,
would result from additional SVP commitments
to state mental hospitals, as well as holding some
sex offenders-who have completed their. prison
sentences-in state mental hospitals while they are
being evaluated to -determine whether they should
receive an SVP commitment. (Some of the sex
offenders undergoing evaluation as SVPs might also
be held in countyjails.)
Additional SVP commitments could . eventually
result'in one-time capital outlay costs of up to
several hundred million dollars for the construction
of additional state hospital beds.
The additional operational and capital outlay costs
would be partly offset in the long term. This is
because the longer prison senfences for certain sex
crimes required by this measure would delay SVP
. referrals and commitments to state mental hospitals.
These costs would also be partly offset because the
change from two-year commitments to commitments
for an undetermined period of time is likely to
reduce DMH's costs for SVP evaluations and court
testimony. Fiowever, oirr analysis indicates that on
balance the operating and capital outlay costs to the
state are likely to be substanJially greater than.the
savings.
Ciurt and Jail Fiscal'Impacts.This measirre would
also affect state and local costs.associated with court
and jail operations. For example, the additional SVP
commitment petitions, resulting from this measure
would increase court costs for hearing these civil cases.
Also, county jail operating costs would increase to the
extent that offenders who have'court decisions pending
on their SVP cases were held in. county jail facilities.
The provision making it unlawful for sex offenders to
reside within 2,000 febt of a school or park could result
in additional court and jail costs to prosecute violations
of this provision.
Other provisions of this measure could result
in savings for court and jail operations. The
measure's provisions providing for the indeterminate
commitment.of SVPs, instead of the current two-year
recommitment process, would reduce county costs
for SVP commitment proceedings. Provisions of this
measure would increase the length of time that some
sex offenders spend in prison or mental hospitals. To
the extent that this,occurs, these offenders would likely
commit fewer crimes in the community, resulting in
some court and local criminal justice savings.
Given the potential for the factors identified above to
offset each other, the net'fiscal impact of this measure
on state and local costs for the court andjail operations
cannot be determined at this time.
Other Impacts on State and Local Governments.
There could be other savings to the extent that offenders
imprisoned for longerperiods require fewer government
services, or commit fewer crimes that result in victim-
related government costs. Alternatively, there could be
an offsetting loss of revenue to the extent that offenders
serving longer prison terms would have become
taxpaying citizens under current law The extent and
'magnitude of these impacts is unknown
I
For text ofProposition 83 see page 127.
* * *Analysis 145 ,
PROP
83
SEX OFFENDERS. SEXUAIIY VIOLENT PREDATORS.
PUNISHMENT, RESIDENCE RESTRICTIONS AND MONITORING
INITI,ATIVE STATUTE. * * *
ARGUMENT IN FAVOR OF PROPOSITION 83
Proposition 83-JE$SICA S LAW-will protect our
children by keeping child molesters in prison longer; keeping
them away from schools and parks; and monitoring their
movements after they are released.
A rape or sexual assault occurs every two minutes: A child
is abused or neglected every 35 seconds.
Over 85,000 registered sex offenders live in Calif0rnia.
Current law does not provide T,aw Enforcement with the tools
they need to keep track ofthese dangerous criminals. Secrecy
is the child molester's biggest tool. How can we protect our
children ifwe don't even know where the sex offenders are?
Froposition 83 is named after Jessica Lunsford, a 9-year
old girl who was kidnapped, assaulted, and buried alive by a
convipted sex offender who had failed to report where he lived.
Proposition 83 will:
Electronically monitor, through GPS tracking, dangeraus
sex offendersfo, W once they finish their prison terms.
Require dangerotrg sex offenders to seryg their entire
sentence and not b'e released early for any reason.
Create PREDATOR FREE ZONES sround schools and
parks to prevent sex offenders from.living near where our
children learn and play.
Prolect children from INTERNET PREDATORS by
cracking down on people who use the Internet to sexually
victimize children.
Require MANDATORY MINIMUM PRISON
SENTENCES for dangerous child moleiters and sex
criminals.
Allow. proseculors to charge criminals who possess cftild
poriography with afelony. (Current law treats child porn like
trespassing or driving on a suspended license!)
Crime Victims and Law Enforcement leaders urge you to
pass this much needed reforni. Jessica's Law is supported by:
. California State Sheriffs Association . California District
Attorneys Association . California Organization of Police
and Sheriffs'. California Police Chiefs Association . Clime
Victims United of Califomia. Califomia Women's Leadership
AssociaJion . California Sexual Assault Investigators
Association . Women Prosecutors of California . Mothers
Against Predators . Mark Lunsford, father ofJessica Lunsford
. Numerous cities, counties, and local sheriffs, police chiefs,
and elected officials.
Law enforcement professionals know there is a high risk
that a sexual predator will commit additional sex crimes after
, being released from prison. Prop. 83 keeps these dangerous
criminals in prison longer and keeps track of them onge they
are released.
Proposition 83 means safer schools, safer parks, and safer
neighborhoods.
Proposition 83 means dangerous child rltolesters will be
kept awayfrom our children and monitored for life.
Proposition 83 means predatory sex criminals wilt be
punished and serve their full sentence in every case.
Our families deserve the protection of a tough sex offender
punishr.nent and control law The State Legislature has failed -
to pass Jessica's Law time and time again. WE CANNOT
WAIT ANOTHER DAY TO PROTECT OUR KIDS.
Vote YES on Proposition 83-JESSIGA'S LAW-to protect
our families and make California a safer plilce for all of us.
For more information, please visit urr,r'rar. Jessicaslnw2006:com.
GOVERNOR ARNOTD SCHWARZENEGGER
DISTRICT ATTORNEY BOIINIE DUMAITIIS
San Dfego County
HARRIET SAIARN0, President
Crime Victims United of California
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 83
The argument in favor of Proposition 83 ignoies the. sad
.. lessons learned by other states. For example, the leading
prosecutors' association in lowa, which once urged the
adoption of laws similar to Proposition 83, now argues
thai those laws be repealed because they have proven to be
ineffective, a drain on crucial law enforcement resources,
and far too costly to toxpayers. California cannot afford to
repeat that mistake.
The Proponents claim that the law is directed at "child
molesters" and "dangerous sex offenders," but its most punitive
and restrictive measures would apply far more broadly: even
to those convicted of misdemeanor, nonviolent offenses. They.
.would also applyto people who have longled law-abiding lives
for years after completing their sentences. More specifically,
the Proposition would:
- protritit thousands of misdemeanor offenders from living
, near a school or park for the rest oftheir lives.
-Impose lifetime GPS monitoring on first-time offenders
convicted of nonviolent offenses. For example, a
l9-year-old boy could be subjecte! tq lifttime monitoring
after a conviction for having sexual contact with his
I 7 -y e ar - old girlfri end.
- Impo5e both lifetime residence restrictions and lifetime
GPS monitoring on thousands of people who have lived
law abiding lives for years or even decades.
These results are simply wrong.
Here's the bottom line.. California has laws that protect us
from Sexually Violent Predators, and this Initiative could have
focused on such dangerous.persons. But, it does nott. Don't be
fooled. VOTE NO ON PROPOSITION 83.
CARTEEN R. ARUDGE, President
California Attorneys for Criminal Justice
46 I AfgUmentS * * * Atguments printed on this page are the opinions ofthe authors and have not been checkedfor accuracy by any fficial agency.
r EX OFFE N DERS. SEXUAIIY MOITNT PREDATORS.
PUNTSHMENT,RESTDENCERESTRT.Jtf f ,Ni,#Ril1tr#,[E
PROP
83
ARGUMENT AGAINST PROPOSITION 83
Proposition 83 would cost taxpayers an estimated $500
million but would not increase our children's safety. Instead,
by diluting law enforcdment resources, the initiative would
actually reduce most children's security while increasing the
danger for those most at risk:
-First, the initiative proposes to "monitor" every
registered sex offender, on the misguided theory that each is
likely to reoffend against'rstrangersl" But law enforcement
experience shows that when sex registrants reoffend, their
targets are usually mehbers of their own household. This
Proposition would do nothing to safeguard children in their
own homes, even though they are most at risk.
-Second, the Proposition would not focus on the real
problem*dangerous sex offenders-but would instead waste
limited resources tracking persons whs pose no risk. The new
lqw would create an expensive tracking systemfor thousands of
regisirants who were convicted of minor, nonviolent offenses,
perhaps years or decades ago. Law enforcement's resources
should be directed towaril high risk individuals living in our
neighborhoods.
Proposition 83 would have other dangerous, unintended
consequences. The Proposition's monitoring piovisions
would be least effective against those posing the greatest
danger. Obviously, dangerous offenders wouldbe thb least
likely to iomply, so the proposed law would push the more
serious offeqders underground, where they would be /ess
effectively monitored by police.In addition, by prohibiting
sex offenders from living within 2,000 feet of a par( or
school, the initiative would force many offenders from
urban to rural areas with smaller police forcbs.. A high
concentration ofsex offenders in rural neighboyhoods will
not serve puhlic safety.
Prosecutors in the State of Iowa know from -sad
experience that this type of residency restriction does
not work. In 2001, Iowa adopted a similar law, but the
association of'county prosecutors that once advocated for
that law now say that it " does not provide theprotection that
was originally intended and thai the cost of enforcing the
requlrement and unintended effects on families of offenders
wa:rrant replacing the restriction with more ffictlve
protective measures." (February 14, 2006, "Statement on
Sex Offender Residency Restrictions iri lowa," Iowa County
Attorneys Association.) (To see the full Statert'tent, go to:
www.iowa-icaa. com /index.htm or www. caci. org.)
A summary of the Iowa prosecutors' findings shows why
the Iowa law was a disaster and why Propositiorr 83 must be '
rejected:. Residency reStrictions do not reduce sex offenses against
children or improve.children's safety.. Residency restrictions will not be effective against 80 to
90% of sex crimes against children, because those crimes
are.committed by a relativg or acquaintance of the child.. Residency restriitions cause sex iegistrants to disappear
from the re$istration system, harming the interest of
public safety.. Enforcing the residency restrictions is expensive and
.ineffective.
: The law also caused unw*rranted disruption to'the
innocent families of ex-offenders.
For all ofthese reasons, vote "Noi' on Proposition 83!
CARTEEN R. ARUDGE, President
California $,ttorneys for Criminal Justice
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 83
I
Don'tbe fooledbythe false arguments the group oflawyers
against Proposition 83 is making. They represent criminal
defense attorneys who make their living defending criminals.
Of course they don't want tougher laws!
Let's consider the FACTS:. pVERY major POLICE, SHERIFF, and DISTRICT
ATTORNEY organization in California strongly supports
Jessica's Law.. EVERY major CRIME VICTIM organization in
California strongly supports Jessica's Law.. Thousands of dangerous sexual predators are living in
our communities and neighborhoods, and police db not
have the tools they ne.ed to track them down.. Jessica's Law will KEEP TRACK OF FELONY SEX
OFFENDBRS after their release from prison by requiring
them to wear a GPS tracking device at all times.. Jessica's Law will STOP dangerous sex offenders from
living near schools and parks *here they can stalk and
prey oh our children,
Your YES vote on Proposition 83-Jessicir's T aw-will
give law enforcement the tools they need to stop sexual
predators before they strike again.'
The man who confessed to murdering nine-year-
old Jessica Lunsford was a convicted sex offender who
failed to register with local police. He took Jessica
from her bedroom window, assaulted her for three
ilays, and buried,her alive only a few doors from
her home.
GPS MONITORING COULD HAVE SAVED JESSICIfS
LIFE! Tragically, it's too late to save Jessica Lunsford. But
it's nottoo late to prevent countless other children frombeing
attacked and murdered by sexual predators.
Vote YES on 83-Jessica's Law.
M0NTY H0LDEN, Executive Director
California Organization of Police and Sheriffs (COPS)
STEVE IPSEN, President
California Deputy District Attorneys Association
SHERIFF GARY PENR0D, President
California State Sheriffs Association
Arguments printed on this page are the opinioni ofthe authors and have ndt been checkedfor accuracy by any official agency. * * * AfgUmeilS I 47
I
PROPOSITION WATER L&IALITY, SAFETY AND SUPt,r f.
FTOOD C-ONTNOL NATURAT RESOURCE PROTECTION
PARK IMPROVEMENTS. B ON D S. tN ITIATIVE STATUTE.B4
OFFICIAT TITLE AND SUMMARY* * *Prepared by the Attorney General
WATER OUALITY, SAFETY AND SUPPLY. ' '
FTOOD CONTROI. NATURAT RESOURCE PROTECTION.
PARK IMPROVEMENTS. BONDS. INITIATIVE STATUTE.
' Funds projects relating to safe drinking water, water quality and supply, flood control, waterway
and natural resource protection; water pollution and contamination control, state and local park
improvements, public accpss to natural resources, and water conservation efforts.. Provides funding for emergency drinking water, and exempts such expenditures from public contract
and procurerhent requirements to ensure immediate action for public safety.. Authorizes $5,388,000,000 in general obligation bonds to fund projects and expenditures, to be repaid
from the state's General Fund.
/
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
. State cost of about $10.5 billion ovei 30 years to pay offboth the principal ($5.4 billion) and interest
($5.1 billion) costs on the bonds. Payments of about $350 million per year.. Reduction in local property tax revenues of several million dollars annually-
' Unknown costs, potentially tens of millions of dollars per year, to state and local governmgnts to
operate or maintain properties or projects acquired or developed with these bond funds. /
48 I litle and Summary * * *
WAIER QIAI.ITY, SAFETYAND SUPPLY. PROP
FLOOD CONTROL. NATURAT RESOURCE PROTECTION.
PARK IMPROVEM ENTS. BON DS. IN ITLATIVE STATUTE.
84
* * * ANALYSIS BYTHE LEGISLATIVEANALYST
BACKGROUND
State Spending on Resources Programs. The
state operates a variety of programs to conserve
natural resources, protect the environment, provide
flood control, and offer recreational opportunities
for the public. The state also operates a program
to plan for future water supplies, flood control,
and other water-related requirements of a growing
population. In addition to direct state expenditures,
the state also provides grants and loans to local
governments and nonprofit organizationp for
similar purposes. These programs support a variety
of specific purposes, including:
. Naturul Resoarce Conservation. The state has
provided funds to purchase, protect, and improve
natural areas-including wilderness and open-
space areas; wildlife habitat; coastal wetlands;
forests; and rivers, lakes, streams, and their
watersheds.
. SaJb Drinking Water. The state has made loans
and grants to public water systems for facility
improvements to meet state and federal safe
drinking water standards.
. Flood Control. The state . has funded the
construction and repair of flood control projects
in the state Central Valley flood control system.
The state has'also provided financial assistance
to local agencies for local flood control projects
in the Sacramento-San Joaquin River Delta and
in other areas outside the Central Valley.
. Other Water' Quality and Water Supply Projects.
The state has made available funds for various
other projects throughout the state that improve
water quality andlor,the reliability of water
supplies. For example, the state has provided
loans and grants to local agencies for the
construction and implbmentation of wastewater
treatment, water conservation, and water
pollution reduction proj ects.
. Stute and Local Purks. The state operates the
state park system and has provided funds to local
governments for the acquisition, maintenance,
and'operation of local and regional parks.
Funcling forRes.ources Programs. Funding
for these various programs has traditionally come
from General Fund revenues, federal funds, and
general obligation bonds. Since 1996, voters have
authorized approximately $11 billion in general
obligation bonds for various resources purposes.
Of this amount, approximately $1.4 billion is
projected to remain available for new projects
as of June 30, 2006, primarily for water-related
purposes. Legislation .enacted earlier this year
provides $500 million from the General Fund for
emergency levee repairs and other flood control-,'
related expenditures.
PROPOSAL
This initiative allows the state to sell $5.4 billion
in general obligation bonds for safe drinking water,
water quality, and water supply; flood control;
natural resource protection; and park improvements.
(See "An Overview of State Bond Debt" on page 96
for'basic information on state general obligation
bonds.) Figure I (see next page) summarizes the
purposes for which the bond money would be
available for expenditure by various state agencies
and for loans and grants, primarily to local agencies
and nonprofit organizations. In order to spend
most of these bond funds, the measure requires
the Legislature to appropriate them in the annual
budget act or other legislation.
FISCAL EFFECTS
Bond Costs. The cost of these bonds would
depend on interest rates in effect at the time they
For.text ofProposition 84 see page 138.***Analysis 149
PROP WAIER QIAIITY, SAFETYAND SUPPLY.
84 FLooD coNTRor. NAruRAr RES.'RCE pRorECTroN.
PARK IMP ROVEMENTS. B ON D S. I N ITTAIIVE STAIUTE.
ANAIYSIS BY THE TEGISTATIVE ANALYST rcoNrrNu.or
Water 0uality
. lntegrated regional water management.o Safe drinking water.
o Delta and agriculture water quality.
Ptotection of Rivers, Lakes, and Streams
. Regional conservancies.
' Other-projects-pubr.ic access, river parkways, urban stream restoration,
Cal iforn ia Conservation Corps.. Delta and coastal fisheries restoration.. Restoration of the San Joaquin River.o Restoration projects related to the Colorado River.r Stormwater pollution prevention.
Flood Control
o State flood control projects-evaluation, system improvements, flood corridor programo Flood control projects in the Delta.
' Local flood control subventions (outside the Central Valley flood control system).
' Floodplain mapping and assistance for rocar rand use pranning.
Sustainable Communities and Climate Change Reduction
r Local and regional parks.r Urban water and energy conservation projects.. lncentives for conservation in local planning,
Protection ol Beaches, Bays, and Goastal Waters
o Protection of various coastal areas and watersheds.. Clean Beaches Program.
' California ocean Protection Trust Fund-marine resources, sustainable fisheries, andmarine wildlife conservation.
Parks and Natural Education Facilities
r State park system-acquisition, deveropment, and restoration.o Nature education and research facilities.
Forest and Wildlife Conservation
o Wildlife habitat protection.r Forest conservation
e Protection of ranches, farms, and oak woodlands.
Statewide Water planning
. Planni for future water needs, water con nce systems, and flood control
Amount
'(ln l\4illions)
$1,525
1,000
380
145
$928
279
189
180
100
90
90
$800
315
275
180
30
$580
400
90
90
$540
360
90
90
$500
400
100
$450
225
180
45
$6s
65
TIGURE I
$5,389
Tota I
Proposition 84: Uses of Bond Funds
S0lAnalysis***
FTOOD CONTROL.NATURAT RE
WATERQIALITY'SAFE IY ENO SUPPLY.PROP
SO URCE PROTECTION'84
are sold and the time period dver which they are
repaid. The state *ot'ld likely make principal and
irr't"r"rt payments from the statels General Fund
oro", u p.r.O of about 30 years' If the bonds were
sold at an average interest rate of5 percent' the cost
;;il u" "u"ti $10'5 billion to pav "tr
b:ll m:
;rt*;i lSto uittion) and interest ($5'1 billion)'
The'average payment would be about $350 million
per year'
Propetty Tax-Related Impacts' The initiative
n.ouiA., funds for land acquisition by governments
and nonprofit organizations for various purposes'
J.rA., state law, property owned by government
entities an( by nonprofit organizations Gndl
specin.O conditions) is exempt from property
PARK IMPROVE,MENTS.
* * * ANATYSIS BY TH E LEGISLATIVE
BONDS INITIATTVE STATUTE.
ANALYST (coNrlNUED)
taxation. To the extent that this initiative results
;';;;;"tt being exempted from taxation due
i" ".q*ltions
by governments and nonprofit
orgunJutions, local governments would receive
reduced property tax revenues' We estimate these^t.al n**it tax revenues would be several
-tti* Ootlars annuallY'
Operational Costs' State and local governments
*;;";; "dditional
costs to operate ormaintainthe
;n;;* or projects, such as new park facilities'
it u, u* prrr.hu'ed or developed with these bond
funds. The amount of these potential additional
"or,,
i, unknown, but could be tens of millions of
dollars Per Year'tr
For text ofProposition 84 see page 138
***AnalYsis 151
PROP
84
PROPOSITIO
PROMISES
N 84 CANNOT DELIVER ON ITS
^*r#33ii
pRorEcrs CALTFORN rA's wArER, LA ND,
.,^j{rqnia is growing
Tpidly: putting new pressure eachyear on our water resourcesi tari,i,toasiini oo"un. prop. g4protects rhese vitar narurar;d;il'*#filt are essentiar roour health, our economy,
"nd
i,"iq"li iiv'o'i ii r".yES on 84 pRorEcrs onrNriiNC,waiBn euAt.rry.The vgater we drinl
to contaminat"". t*."$l;ti,:" *t* our food is vutnetabte. Remove dangeroui chemicals from our water supply.I frevgnt future grounO*utr, .ont-u_l*ril;. prevent toxic runoff from flowing inio ou,,utrr.
'ol;'df f,itii?A"ii?ii"rtr*;;;;?;#hitiescLEA\
. I.ast year, there wgg,pole tha1.1,200 beach closing or
i;Iif,fi "g*$#h?#flff:m"t?#iil#.nffiYES ON 84 ASSURESA RELIABLB WATBN SUPPLY.Prop. 84 will increase. lr r.fi"qiiirll ""f
6uf ifo*iu,s watersupply, through conseregionintrrei?aiewiiiiTf:h,x3flr,*,T:*l'::i#'ii"ilff Igiven local control
"ue1 :_eg",il' fiil;1"J'improve rocatwatersupplyandwaterquaiity. r--J-vev !v r
"aL
gfft ,it $l?5R1f
"gir,hr,
oo rrLrNE AND
The measure will help clearrunJ-ruf"guard the ocean and
fr rffi fi nft+ifl f{fi fih:His;lfr:T#,1i"ffi,:'rurrvers and lakes in which wiswi,"-;if;;irl".'yES on 84 pRorECTs ecaiNii riooorNc.An earthquake or a seri,es "f;"j"isti#i,ould damasdour state's levees, causir
fi#;"i;J;"i,;iililxs#i1fl"fr:i3Tf it-"lli€"trillilili
N.
***
PROTECT CALIFORNIA'S DRINKING WATER,LAND, COAST,AND OCEAN Vote YES on 84.
Efforts are underway_-to address_ this urgent threat to
i{ll}ixF,,n:l1sxlti,;i,wl'i*:inr**:r".1*tmportant step forwal
imi,roveno;-d'.o"n#;f 1""3:rlflT,fif; "n"ongoinf'iroilio
,"5R3rT pRo? s+ pnoGcrs CALTFORNTA'S
. Clean beaches, ,iu:r::_un;|^Fke.s.are ciucial to tburism,y*'f i::11?J'::,?"",f tiun$ail'uirii"i'i"iti't"t","onffi
en#**#,x#i,.;lfi*#T:jii#';flffii#
our economy needs to thrive.
ry{{i"fs,8i"H[,!"flf ilf,{i,i*ffi L?l;ilT". Is funded entirelv t om e"isiin;;ffi and will notraise taxes.. yill bring federal matching.funds into California.. Includes strict accoun?ttllfrr",.;;;;" in"ti,ili!.y.urry
r ndependent audits and a citiz-en,s ouiir-, gni"o.m rttee.pLEASE rorN us rN vorrNc G;;;"d.
o'*![H",:?',j33e,yf"l-t,:.i"*"'g;iii;ti"o-n,,andwut",
gffi*'?"'"li:#ilfri;f"ll,t';."ffi *',r,l,,#fi
M.ARJ( BURGET, Execurive'I he Nature Conservancy
TARRY WttSON, Chair
tsoard of Directors, Santa
E. RICHARD BROWN
Health,University
, Ph.D., professor.
of California. Los
Director
Clara Valley Water District
School ofpublic
Angeles
. It will not benefit everyone, but evervonr
:'-lg::g.lf 't;;iIiff g_!Fg.t"",,rr,i'.1lJjl#,ll,f^i. enrorcement, and healm servrces.
NO on 84 PROTECTS THE PUBLIC TREASURY
Ifl ii"fi :it*ffi idt"t,#i,.*,,:*,,,,H,''t'r.*?,"f*l
'elrmrnates protections against
"oriupiioff'uni favoritism in
iiFx:#*?,1i,*,f;';;$**l""Hiilr,ys[#irmand even the Leeislatiu", enuty.T.'ili"ft;, itself fromthe Administrativ6 proceOures hci. ir{']"il^.ff why theproponents fear routine audits. -- -' ''-v^ rvur
,s8^H,,'#,Ffi |'3St'f siayf ilil,x;lH",i"wThis water bond does no, .*"ir.aN? f,rnO. for newreservoirs, aqueducts. o
$*n*,J,*i,*t*ff ii' jffi ,f;';?:-"*:;'tTti?#
,,nilr?u"JrJ4'pRorEcrs. you FROM spECrA L
ffi$,;$at:**l--{+**l-*,r",#**lreports could stop floot11g-,-y{q ili;"s;;iil aprobtem.pLEASE rorN us rN vorrrvcnd;H;.
BItL-tE0NARD, Member
California State Board of Equalization
RON NEHRING, Senior ConsultantAmencans tbr Tax. Reform
!_EWIS K. UHIER, president
Natlonal Tax Limitation Committee
F PROPOSITION 84ARGUMENT IN FAVOR O
REBUTTAL TO ARGUM ENT IN FAVOR OF PROPOSITION 84
521 Argumenrs* * *Arguments printed on this page are the opinions ofthe authors and havo aat ho-_ ^L-^,-, r r' v 't'c ut"t"un; oJ tne authors and have not been checkedfor accuracy by any fficial age;ncy.
./n^.
I
FLOOD
***PARK
PROP
84
u"?ff:"-.alled
"water bond" has n.P"dtlg.f"t d?i-t-:l
*##*tiL;h"* set aside billions for bureaucrailc
stirdies, unne""t'u'V p'ol""iioot for rats and weeds' and other
ffi;i;il;;1".t',L"t ti'"v couldn't I'u 1-:':*n
pennv to
: build freshwater uorug;;J, Lur state's growing population'
;;di; read the tixt to believe it'
^^
Ontv a very small portion of the fund-s froS.this enormous
bJi'S;il';' ;;;il;il;i'epair and maintenance of our
levees, but Propositi;G-*;t:pla99d^on.the ballot bv the
Lesislature to p'ouiOt i+'Oqo'OOb'OOO l"t tl.t:" same levees'
A;];;;^Oi.** ii", *e sirootd yait lo see how that
;'#ffi .piti u"r"t" *i'l"irtoti"" another $ 5'3 8 8'000'000
in new spending' rt-*oufJlUt foolish. fo..lock
permanent
ln*iit*""t;iu'.in'piJt"' u'^'nit t"111']1" seeks to do'
when we have no
'ota
it'ut our future needs wiltr be once the
funds tom ProPosition lE are sPent'
- This bond represents a huge tax increase"The proponents
seem eager to uuoiiittl'"ipr""tt"' {act' but voters need
: to understand that u"tJt"pt:v-""t takes priority over all
Bltt LEONARD, Member
California State Board of Equahzatlon
The opponent's argument is simply wrong'
*r"o*lti"t t4 provides clean water-and protects our coast
*rinllir"rrrWt'"t"'rt jtt"pp-tedbv"-!::"1'bipartisan
coalition of public intereJu"dbt"inttt groups including the
League of Women v"t"tt-"itufilornia'1os lngeles
Area
ChamberofCommerce,andThe\atureConservancy.
Here are the facts'
Proo. 84 funds crucial projegts needed to assure reliable
."p'pii.t of clean, safe dlinking water : , -^
iti'". s+ protects all of California's waters: our rlvers'
iutJt,' ttttl*s, beaches, and baYs'
Prop. 84 includes strict financial accountability' including
a ciiizen oversight com#;;;;;;""1 independent audits'
and full Public disclosure'
i:r"r. tio nt*ects our famiiies from toxic $ollution' floods'
and other hazards ttrrougii critical public safety projects
ProPosition 84 is so important that water districts that
provide drinking water to more than23 ,million Californians
all urge YES on 84
YES on 84:PROTECTS PUBLICHEAUTH
Prop.84 femoves dangerous contaminants from drinking
water, cleans.uP toxic chemicals that contaminate the fish we
eat, and keePs dangerous p.olluted runoff from flowing onto
our beaches and into out coastal waters
YES on 84 Protects our land, water, andPublic health, for
our families and for future generatiPns.
organizations'
in voting YESJoin local water districts, conservation
business groups'and public health experts
on 84.
ERICH PFUEHIER, California Director
Clean Water Action
not funded bY other measures.IEFF KIGHTLINGER'General Manager
YES on 84: BENEFITS ALL CALIFORNIANS MetroPolitan Water District of Southern California
Prop. 84 funds local Priorities to imprpve water qualitY KAITILIN GATFNEY' Conservatron Director
and suPPlY in every region ofthe state.The Ocean ConservancY
r YES on 84:SUPPORTED BY CALIFORNIA'S LOCAL
WATER DISTRICTS
ST PROPOSITION 84
ARGUMENT AGAIN
REBUTTAL TO ARGU MENT AGAIN ST PROPOSITION 84
Argurnents printed on this page ore the opinions of lhe authors
)'n-:^t^azh'tt ***Arguments
and have not been checkedfor accuracy by any otficial agency'
153
PROPOSITION WAITING PE RIOD,{NO PARE NTAI NOTIF ICATION BEFOREB5TERMINATION OF MINO R'S PREGNANCY.INITIATIVE CONSTITUTI ONALAMENDMENT.
OFFICIAT TITTE AND SUMMARY* * *
IS BY THE LEGISTAIIVE ANATYST
BACKGROUND
Prepared by the Attorney 0eneral
wA I Tt N c p E R I 0 D. 4jl p _pI R E N TA r. N o.TtF I CAT| 0 N B E F0 R ELF.B{t'll!l4Tt 0 t\t 0 F M iN_o'il;S ph tc NAN cy.
r N tnATtvE c0 Nsniuiltiilni'irilL ru omr rur.
' Amends california constitution to prohibit abortion for unemancipa.ted minor untir 4g hours after
fin"?lan'notifies
t*;;'t;;.* i".i.gut s;;rdt;;;'";q in medicar emergency or with parental
- ilTi'bTllJrlTr:lx'*court
order waiving notice based on clear and convincing eviden.. "rn'**n
. il:FiXlnT;*tlil:lorting
requirements,.includins reporrs from physicians regaroing auo.tions' Authorizes monetary damages against physicians for violation.. Requires mi nor's ..gn::lt to aboiion, ;iril ;;;;;; J.;";
"" r.. Permits judicial relief if rnino.t ,onslnt coerced.
summary of Legislative Analyst's Estimate of Net state and locar Government Fiscar rmpact:' Potential unknown- net state costs of several million dollars alluurry ro.;r;;;""0 .".a,1.;;;.;,programs' court administration, and state rt""rirr
"g"i.yldministration combined.E ANALYS
In 1953, a state law was enacted that allowedminors to receive, without pur.nrut-;;;;;
notification, the same ,ypr. ii_rlj.u .ur" ro,a pregnancy that are available to an adult. Basedon this law and later legal developments relatedto abortion, minors were able to oo-tain abortionswithout parental consent o.
"otin.ut]Jn.In 1987, the Legislature amended this lawto require minors to obtain ttre consent of eithera parent or a court before obtainirrg an abortion.However, due to leqal challe"r"r, ,i."f* was neverimplemented and the Califo'rn-iatJu*_. Courtultimately struck it down , lgy. ;"nsequently,minors in the state currentty ,".Jie abortionservices to the same extent as adults. This includesminors in various state healrh .;r;;;;;..ms, suchas the Medi-Cal health .ur. p.lruil fo, to*_income individuals
54 I Tiile and Summary/Anatysis * * *
^ This proposition amends the CaliforniaConstitution to require, with certain exceptions,a physician (or his o. t., ,"pr.;;;;ive; to notifithe. parenr or legal guardian "i;;;;;rant minorat least 48 hours before p".for_ilg L abortioninvolving that minor. (this meaff"d"*' ;;require a physician or a minor to obtain'the consentof a parent or guardian.) This -.ururc uppli.r;;i;to cases.involving an .,unemancipated,;minor.
Theproposition identifi
Leing u r.,"ur.- on;T, ilffl:?'it"li*#;n::
entered into a valid marriage-, is not on active dutyin the armed services of ine United States, andhas not been'declared free from- ir", i";;;;r;;;guardians' custody and control'unO.r rtut. tu*.
A physician would provide the requirednotificarion in either of the follow.g;; ways:
PROPOSAT
Notification Reguirements
.f--"-_'
WAITING PERIOD AND PARENTAT NOTIFICATIoN BEFoRE P\gP
TERIvIINATION oF MINORS.PREGNANCY. 85
IN ITTAIIVE CON STITUTIONAT AMENDMENT.
* * * ANALYSIS BY THE LEGISTATIVE ANALYST (cosrrNuro)
Personal Written Notification. Written notice
could be provided to the parent or guardian
personally-for example, whel a parent
accompanied the minor to.an office examination.
Mail Noffication. A parent or guardian could be
sent a written notice by certified mail so long as a
return receipt was requested by the physician and
delivery of the notice was restricted to the parent
or guardian who must be notified. An additional
copy of the written notice would have to be senJ
at the same time to the parent or guardian by first-
olass mail. Under this method, notification would
be presumed to have occurred as of noon on the
second day after the written notice was mailed.
Exceptions to Notification Requirements
The measure provides the following exceptions
to the notification requirements:
Medical Emergencies.' The notification
.requirements wduld.not apply if the physician
certifies.in the minor's medical record that the
abortion is necessary to prevent the mother's
death or that a delay would "create serious risk
of substantial and irreversible impairment of a
major bodily function."
Waivers Approved by Parent or Guardian.
A minor's parent or guardian could waive the
notification requirements and th'e waiting period by
completing and signing a written waiver form for
the physician. The parent or guardian must specifr
on this form that the waiver would be valid either
,(1) for 30 days, (2) until a specified date, or (3)
until the minor's 18th birthday. The form would
need to be notari2ed unless the parent or guardian
delivered it personally to the physician.
Waivers Approved by Coarts. The pregnant
minor could ask a juvenile court to waive the
notification rdquirements. A court could do so if it
finds that the minor is Bufficiently mature and well-
informed to decide whether to have an abortion or
that notification would not be in the. minor's best
interest. If the waiver request is denied" the minor
could appeal that decision to an appellate court.
A minor seeking a waiver would not have to
pay court fees, would be appointed a temporary
guardian and provided other assistance in the case
by the court, and would be entitled to an attorney
appointed by the court. The identity of the minor
would be kept confidential. The court would
generally have to hear and issue a ruling within
three business days of receiving the waiver request.
The appellate court wo,ild generally have to hear
and decide any appeal within four business days.
The proposition also requires that, in any case
in which the court finds evidence of physical,
sexual, or emotional abuse, the court must refer the
evidence to the county child protection agency.
State Reporting Requirements
Physicians are required by this proposition to file
a form reporting certain information to the state
Department of Health Services (DHS) within one
month afterperforming an abortion on a minon The
DHS form would include the date and facility where
the abortign was performed, the minor's month and
year of. birth, and certain other information about
the minor and the circumstances under which the
abortion was performed. The forms that physicians
would file would not identify the minor or any
parent or guardian by name. Based on these forms,
DHS would compile certain statistical information
relating to abortions performed on minors in an
annual report that would be available to the public.
The courts are required by the measure to report
annually to the state Judicial Council the number
For text ofProposition 85 see page 145
***Analysis 155
PROP
85
WAITING PERIOD AND PARENTAT NOTIFICATION BEFORE
TERMINATION OF MINORS PREGNANCY.
IN ITIATTVE CON STITUTIONAT AMENDMENT.
ANALYSIS BY THE LEGISTATIVE ANATYST IcONTINUEOI
of petitions filed and granted or denied. The reports
would be publicly available. The measure also
requires the'Judicial Council to prescribe a manner
of reporting that ensures the confidentiality of any
minor who files a petition.
Penalties
Any person who performs an abortion on a minor
and who fails to comply with the.provisions of the
measure would be liable for damages in a civil action
brought by the minor, her legal representative, or by
a parent or guardian wrongfully denied notification.
Any person, other than the minor or her physician,
who knowingly provides false information that
notice ofan abortion has been provided to a parent
or guardian would be gLilty of a misdemeanor
punishable by a fine.
Relief From Goercion ,
The measure allows a minor to seek help from
the juvenile court if anyone atter4pts to coerce her
to have an abortion. A court would be required to
consider such cases quickly and could take whatever
action it fciund necessary to prevent coercion.
FISCAL EFFECTS
The fiscal effects of this measure on state
government woqld depend mainly npon ito* ih"*t
nbw requirements affect the behavior of minors
regarding abortion and childbearing.. Studies of
similar laws in other states suggest that the effect of
this measure on the birthrate'for California minors
would be limited, if aty. If it were to increase the
birthrate for California minors, the net cost to the
state would probably not exceed several million
dollars annually for health and social services
programs, the courts, and state administration
combined. We discuss the potential major fiscal
effects of the measure below
Savings and Costs for State Health Gare
Programs
Studies of other states with laws similarto the one
proposed in this measure suggest that it could result
in a reduction in the number of abortions obtained
by minors within California. This reduction in
abortions performed in California might be offset
to an unknown extent by an increase in ihe number
of out-of-state abortions obtained by California
minors. Some minors might also avoid pregnancy
as a result of this measure, further reducing the
number of abortions for this group. If, for either
reason, this proposition reduces the overall number
of minors bbtaining abortions in California, it is
also likely that fewer abortions would be performed
under the Medi-Cal Program and other state health
care programs that provide medical services for'
minors. This would result in unknown state savings
for these programs.
This measure could also rbsult.in some unknown
additional costs for state health care programs. If
this measure results in a decrease in minors'
abortions and an inorease in the birthrate of children
in low-income families eligible forpublicly funded
health care, the state would incur additional costs.
These could include costs for medical services
pqovided during pregnancy, deliveries, and follow-
up care.
The net fiscal effect, if any, of these or other
related cost and savingq factors would probably
not exceed costs of a few million dollars annually
to the state. These costs would not be significant
compared to total state spending for programs
that provide health care services. The Medi-Cal
Program alone is estimated to cost the state $13.S
billion in2006-07.
56lAnalysis***
WAITING PERIOD AND PARENTAL NOTIFICATION BEFORE
TERMINATION OF MINORS PREGNANCY.
IN ITIATTVE CON STITUTIONAT AMEN DME NT.
PROP
85
* * * ANALYSIS BY THE TEGISL^{TIVE ANAIYST tcoNTINuEoI
State Health Agency Administrative Costs
The-DHS would incur first-year state costs of
up to $350,000 to develop the riew forms needed
to implement this measure, establish the physician
reporting system, and prepare the initial annual
report containing statistical information on
abortions obtained by minors. The ongoing state
costs for DHS to implement this measure could be
as much as $150,000 annually.
Juvenile and Appellate Gourt Administrative
Gosts
The measure would result in increased state costs
for the'courts, primarily as a result oftheprovisions
allowing minors to request a court waiver of the
notification requirements. The magnitude of thepe
costs js unknown, but could reach several million
dollars annually, depending' primarily on the
number of minors that sought waivers. These costs
would not be significant compared to total state
eirpenditures for the courts, which are estimated to
be $2 billion in2006-07.
Social Services Program Costs
If tllis measure discourages some minors from
obtaining abortions and increases the birthrate
among low-income minors, expenditures for cash
assistance and services to needy families would
increase under the California Work Opportunity
and Responsibility to Kids (CalWORKs) program.
The magnitude of these costs, if any, would -
probably not exceed a few million dollars annually.
The CaIWORKs program is supported with both
state and federal funds, but because all CaIWORKs
federal funds are capped, these additional costs
would probably be borne by the state. These costs
would not be significant compared to total state
spending for CalWORKs, which is estimated to
cost about $5 billion in state and federal funds in
2006-07. Under these circumstances, there could
also be a minor increase in child welfare and foster
care costs for the state and counties.
For text ofProposition 85 see page 145.
***Analysis 157
PROP
B5
WAITING PERIOD AND PARENTAT NOTIFICAIION BEFORE
TERMINAIION OF MINOR'S PREGNANCY.
IN tTI,diTVT CONSTITUTIONAL AMENDMENT. * * *
ARGUMENT IN IAVOR OF PROPOSITION 85
E
IN CALIFORNIA, a daughter under 18 can't get aspirin
from the school nurse, get a flu shot, or have a tooth pulled
without a parent knowing.
BUT, UNBELIEVABLY, surgical or chemical abortions
can be secretly performed on minor girls-even L2-year-
olds-without parents' knowledge.
PARENTS are then notprepared to help young daughters
with the serious physical, emotional, - oi psychological
complications which may result from an abortion or to protect
their daughters from further sexual abuse, exploitation, and
pregnancles.
A study of over 46,000 pregnancies of SCHOOL-AGE GIRLS
in California found that over.tvvo-thirds were impregnated by
ADULT MEN whose mean age was 22.6years.
Investigations have shown that secret abortions on minors
in California are RARELY REPORTED to child protective
services although these pregnancies are evidence oistatutory
rape and sexual abuse. This leavps these girls vulnerable Io
further SEXUAL ABUSE, RAPES, pregnancies, abortions,
and sexually transmitted diseases.
That's why more than ONE MILLION SIGNATURES
were submitted to allow Californians to vote on the "Parents'
Right to Know and Child Protection" / Proposition 85.
PROP. 85 will require that doctors notify a parent or
guardian at least 48 hours before performing abortions on
minor daughters.
PARENTS AND DAUGHTERS in more than 30 other
slates have benefitedfor years from laws like Prop. 85, Many
times, after such laws pass, there have been substantial
reductions in pregnancies and abortions among minors.
When parents are involved and minors cannot anticipate
secret access tofree abortions they more often avoid the reckless
behavior which leads to pregnancies. Older men, including
Internet predators, are detefred from impregnating minors when
secret abortions are not available to conceal their crintes.
If she chooses, a minor may petition juvenile court
to permit an abortion without notifying a parent. She can
request a lawyer to help her. If the evidence shows she is
mature enough to decide for herselfor that notifying a parent
is not in her best interests, the judge will grant her petition.
The proceedings must be confidential, prompt, and free. She
may also seek help from juvenile court if shq is being coerced
by anyone to consent to an abortion.
POLLS SHOV/ most people support parental notification
laws. They know that a minor girl-pregnant, scared, and
possibly abandoned or pressured by an older boyfriend-
NEEDS the advice and support of a parent.
PARENTShave invested more attentien and love in raising
their daughter, know her personal and medical history better,
and care more about her future than STRANGERS employed
by abortion clinics PROFITING from performing many
abortions on minors.
A minor still has a legal right to obtain or refuse an abortion,
but a parent can help her understand all options, obtain
competent care, and provide medical records and history.
An informed paregt can also gel PROMPT CAREfor hemorrhage, infections, and other possibly fatal
complications.
VOTE "YES" on PROPOSITION 85 TO ALLOW
PARENTS TO CARE FOR AND PROTECT THEIR MINOR
DAUGHTERS' WELL-BEING, HEALTH, and SAFETY!
www.YESonS5.net
WltLlAM P. CIARK, California Supreme Court Justice (Ret.)
MARY L. DAVENPORT, M.D., Fellow
American College of Obstetrjcians and Gynecologists
PROFESSoR J0SEPH R. ZANbA, M.D., FAAB Past President
American Academy of Pediatrics
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 85
NO LAW CAN FORCE EAMILIES TO COMMLINICATE.
Of course, parents rightfully want to be involved in their
teenagers' lives; but in the REAL WORLD some teenagers
live in dangerous homes. Some parents are violent or sexually
abuse their daughters.
- IN THE REAL WORLD, Proposition 85:. WON,T STOP CHILD PREDATORS. BacKers are
exploiting our fear of predators to advance their own
political agenda.. WON'T REDUCE TEEN PREGNANCY.. PUTS TEENS AT RISK. Scared, pregnant teens from
abusive families won't go to court . . . but they may resort
to dangerous back-alley abortions-or even consider suicide.. MEANS DANGEROUS DELAYS IN CRITICAL
MEDICAL CARE. The New England Journal of
Medicine reported that, after a law like this took effect,
some pregnant teens waited months to seek care, getting
riskier s econd trimes ter abortions.
The California Supreme Court found "overwhelming"
evidence that similar laws in other states cause real harm to
teenagers and families.
Don't be misled.
For nitrety years, Planned Parenthood has been a trusted
provider of quality healthcare. Caring staff counsel pregnant
teens to talk to parents-and most do.
Planned Pari:nthood and other family planning clinics
COMPLY WITH ALL CALIFORNIA LAWS ON CHILD
ABUSE REPORTING. To charge NOI4r that they protect
criminals is ridiculous. DHHS's Office of Inspector
General's recent investigation didn't find evidence of a
single reporting violaticin.
The San Jose Mercury News says Froposition 85 is "PART
OF A LARGERSTRATEGYTO CHIP AI4/AYATLEGALIZED
ABORTION IN THE UNITED STATES."
Prop. 85 threatens teens . and a whole lot more.
VOTE NO.
DONNA W. CHIPPS, Executive Vice President
League of Women Voters of California
B0 GREAVES, M.0., President
California Academy of Family Physicians
IEANNE A. CONhY, M.0., Vice Chdir
The American College of Obstetricians and Gynecologists,
District IX California
58 I AfgUmentS * * * Arguments printed on this page are the opiiions ofthe authors and have not been checkedfor accuracy by any offcial agency.
r"-i(
WAITING PERIOD AND PARENTAT NOTIFICATION BEFORE
TERMINATION OF MINORS PREGNANCY.* * * rNrrrATrvE CoNsrrrurroNer AMENDMENT.
PROP
8s
ARGUMENT AGAINST PROPOSITION 85
They understand that while PARENTS RIGHTFULLY
WANT TO BE INVOLVED IN THEIR TEENAGERS'
LIVES, ln the real world, SOME California TEENAGERS
COME FROM HOMES where they can't talk to their parents,
where there is violence, or WHERE A FAMILY MEMBER
HAS SEXUALLY ABUSED THEM.
THESE TEENS CAN'T GO TO THEIR PARENTS.
They fear bei4g kicked out of their homes, beaten, or worse.
Proposition 85 forces these teens to delay critical .medical
carb or turn to self-induced or illegal back-alley qbortions.
Some will go across the border; some will suffer serious
injuries or.even consider suicide.
PROPOSITION 85 PUTS THE HEALTH AND SAFETY
OF TEENAGERS AT RISK.
No law can mandate good family communication. The
real answer to teen pregnancy and abortion is strong, cciring
.families and comp rehensive s ex education, inc lu ding abstin ence,-But sadly, not all California teens live in homes with strong,
caring families.
For OUR MOST VULNERABLE TEENAGERS-tftose
who rnost need protectior-PROPOSITION 85 PUTS THEM
INHARM'S WAY ORFORCES THEM TO GO TO COURT.
FORCING A SCARED, PREGNANT TEENAGER
who can't go to her parents INTO. CALIFORNIA'S
OVERCROWDED COURT SYSTEM WON'T WORK-
AND COULD CAUSE TEENS MORE HARM. Courls are
already backlogged; there's a lot ofred tape, and they are hard
to.navigate, even for adults.
Think qbout it. The teen is scared, pregpant, herfamily might
be abusive. SHE DOESN'T NEED A JUDGE. SHE NEEDS A
COUNSELOR AND GOOD MEDICAL CARE-WITHOUT
DELAY.
Proposition 85's new bureaucratic rules WON'T GUARANTEE-
that parents.are notified. Who will sign for the mail? What happens
when the mail is delayed, or the parents aren't home, or the teen
intercepts the letter?
The real answer. to teen pregnancy is'prevention and
caring families-NoT NEW LAWS THAT ENDANGER
OURDAUGHTERS.
AND PROPOSITION 85 IS NOT ABOUT PROTECTING
TEENS FROM OLDERMENAND SEXUAL PREDATORS.
Clinics already provide counseling .about responsible
behavior and report illegal activities.
Proposition 85 won't reduce teen pregnancy rates,
can't force families to communicate, is complicated and
unworkable .. . . and is not about predators-BuT IT WILL
PUT GENERATIONS OF CALIFORNIA'S TEENAGERS
AT RISK,
WE ALL MUST CAF.E enough aboilt Proposition 85 to
VOTB NO because DEFEATING Prop. 85 is about KEEPING
OUR DAUGHTERS SAFE and PROTECTING THE RIGHT TO
CHOOSE.
SUPPORTERS of Prpposition 85-including the Traditional
Values Coalition, Evangelicals for Social Action, and Right
to Life of Central California-ARB THE SAME PEOPLE
WHO WANT TO OVERTURN ROE v. WADE and BAN
ALL ABORTIONS. Despite what they say, Proposition 85
ISN,T ABOUT PARENTAL RIGHTS; IT,S ABOUT THEIR
POLITICAL AGENDA.
Join PARENTS, DOCTORS, NURSES, PLANNED
PARENTHOOD, and THE LEAGUE OF WOMEN
VOTERS OF CALIFORNIA and VOTE NO on 85. For more
information about REAL TEEN SAFETY, VISIT OUR
WEBSITE, www.noonS5.com.YOTE NO ON PROP. 85.
JACK LEWIN, M.D., CEO, California Medical Association
ROBERT [, BIACK, M.D.
American Acadeniy of Pediatrics, California District
KATHY KNEER, CEO !
Planned Parenthood Affiliates of Califorriia
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 85
When parents learn their daughter is pregnant, ALMOST
ALL RESPOND WITH LOVE AND SUPPORT,
PROPOSITION 85 OFFERS CLEAR BENEFITS TO
YOUNG GIRLS:. The parent can assist her daughter in selecting a doctor, Many
abortion clinics employ doctors who have been disciplined
by the medical boardfor INCOMPETENCE, NEGLIGENCE,
CRIMINAL CONVICTIONS, OR SEXUAL MISCONDUCT,
Many have been cited by health officials for UNSATFE
CONDITIONS.. An infoi*edparent can respond quickly to post-abortion
complications. Abortion complications can result in
permanent injury, even death. Teens who have secret
abortions often Qelay seeking treatment. PARENTS I4/HO
DON' T. KNOW, CAN' T HELP.. Parents who learn their daughters arc victims of sexual
as.saults can intervene to protect them. Many abortion
providers CIIOOSE NOT TA REPORT SEXUAL ABUSE,
abandoning these girls to FURTHER SEXUAL ABUSE.
www.ChildPreilators. com
In the rare case of familial abuse, a court will'permit a
minor to obtain an abortion without notifying a parent{f_rgn PRSFESSSR JSSEPH R. ZANGA, M,D., ;AAB past president
notify child protective services so she c-an be helped, NOZ n-"tiJ* A.3A.-V ofpidiaiiils
--: -' -' -' -- ' - -'-' - - - -
Arguments printed on this page are the opinions ofthe authors and have not been checkedfor accuracy by any olficial agency. *'* * Afguments I 59
LEFT VULNERABLE TO FURTHER HARM,
A parent of two young teenage daughters, GOVERNOR
ARNOLD SCHWARZENEGGER said ,it would be,,... . THE ULTIMATE OF BEING OUTRAGED . . .'' iT
bomeone took ftls daughter for d secret abortion.
.OVER THIRTY STATES already have laws like
PROPOSITION 85, and THEIR EXPERIENCE SHOWS
THESE LAWS REDUCE MINORSI PREGNANCY AND
ABORTION RATES WITHOUT DANGER AND HARM TO
MINORS..
Currently, the state PAYS FOR SECRET ABORTIONS
FOR MINOR GIRLS. PUT PARENTS IN CHARGE, NOT
THE GOVERNMENT!
VOTE "YES" on PROPOSITION 85! PROTECT OUR
DAUGHTERS!,See: www.YESon85.net
PROFESSOR TERESA STANTON COLtETT, I.D.
National Authority on Parental Notification and
Involvement Laws .
JANE E. ANDERS0N, M.0., FAAB Clinical Professor of
Pediatrics
PROPOSITION TAX ON CIGARETTES
I N ITIATTVE CON STITUTIONAT AME N DMENT AN D STATUTE.B6
OFFICIAL TITTE AND SUMMARY * * *Prepared by the Attorney General
TAX ON CIGARETTES.
INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
. Imposes additional 13 cent tax on each cigarette distributed ($2.60 per pack), and indirectly increases tax on
other tobacco products.
. Provides funding to qualified hospitals for emergency services, nursing education and health insurance to
eligible children.
. Revenue also allocated to specified purposes including tobacco-use-prevention programs, enforcement of
tobacco-relatqd laws, and research, prevention, treatment of various conditions including cancers (breast,
cervicat, prostate, colorectal), heart disease, stroke, asthma and obesity.
. Exempts recipient hospitals from antitrust laws in certain circumstances.
. Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
. Increase in new state tobacco excise tax revenues ofabout $2.1 billion annually by 2007-08, declining slightly
annually thereafter. Those revenues would be spent for various health programs, children's health coverage, and
tobagco-related programs. ,
,. Unknown net state costs potentially exceeding $100 million arlnually after a few years due to provisions
simpliffing state health program enrollment rules and creating a new pilot program for children's health
coverage.
. 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
be significant in the lo4g term for ongoing support of expanded HFP enrollment.
. Unknown, but potentially significant, savings in state and local government public health care costs over time
due to various factors, including an expected reduction in cohsumption of tobacco products.
ANATYS IS BY THE LEGISLATIVE ANALYST
BAGKGROUND
Tobacco Taxes
Current state law imposes certain taxes directly on
cigarettes and other tobacco products that are known
as excise taxes. Excise taxes are taxes collected on
selected goods or services. Currently, the excise taxes
" total 87 cents per pack of c-igarettes (with a similar
tax on other types oftobacco products). The total tax
of87 cents perpack consists of:
. 50 cents to support early childhood development
programs, enacted by the voters as Proposition 10
in 1998.
. 25 cents to. support tobacco education and
prevention efforts, tobacco-related disease research
programs, health care services for low-income
uninsured persons, and envihonmental protection
, and recreational programs, enacted by the voters
as Proposition 99 in 1988.
. 10 cents for the state General Fund.
. 2 cents to support research related to breast cancer
and breast cancer screening programs for uninsured
women.
Current taxes on cigarettes and other tobacco
products are estimated to raise about $1.1 .billion in
2006-07.
60 I Title and Summary/Analysis * * *
***ANALYSISBY
TAX ON CIGARETTES PROP
IN IT TTVE CO N STITUTIONAT AMEN DME NT AN D STATUTE 86
THE LEGISLATWE ANAIYST (coNTINUED)
funds to PaY for this health coverage' This Program
Children's Health Care Govetage
Medi'Cal. The Medi-Cal Program (the 'federal
wr.ii""iO-program in California) prw!de1- health care
services 6 ls1ry-incorrr. p"ttont, including eligible
children (depending on tttt ugt of tle *ild)' Families
;iil;;;;t up to t:l percent of the federal
povertv
;;;1 id;tl"u"" gzzboo per vear for a familv of
il.t i ;; gJt.*rrv eiigible for corerage- The program
is administered by ifrt to* Department of Health
has a caseload ofabout 3'000 children.
In addition to the CHIM Program' some countieg
have established their own health coverage Programs
for children that are ineligible for Medi-Cal or
HFP. These Programs are primarilY supported with
local funding. These programs serve about 69,000
children.
Services (DHS)PROPOSAL
Under the Medicaid Program,matching federal This measure increases excise taxes on cigarettes
funds are availabfe for the support of comprehensive (and, as dis'cussed below, indirectlY on other tobacco
medical services foi United States citizens products)to Provide funding for hospitals forand to
(a qualified aliens"-that is,immigrants who emergency services as well as programs to increaseafe
permanent residents, refugees,or a member access to health insurance for children,expandof
certain other gr0uPs granted the legal right to remarn nursmg education, suPPort various new and existing
in the United States.Federal matching funds are healih and education activities,curb tobacco use
also available for nonqualified aliens, but odly for
and regulate.tobacco sales. Major provisions of the
emergency medical services'measure are describedbelow,
The Medi-Cal Program current$ serves about 3'2
million adults and3'2 million children'
Board (MRMIB)
The HFP provides medical covemge for about
programs specified in this measure'
781,000 children'
Healthy Fumiilies' Tlie Healthy F".Ttli:t Program
Gd;;iL;s r,"artrt i"'o'untt io eligible children
in families *ho gene'a[y !ry3 incomes below 250
il;;;;^;i.pr- t"-'u""i$i"o,ooo p" v:T r:'a ramilv
of four) who do not quafify for Medi-Cal'(Children in
;ilf'"*tltes with iigh"; incomes are also eligible')
ilffi]; g*tuuv"o" u t*9:tl-one_federal/state
ffi;rfit;""tir' crtirat;" in HFP must be eligible
United States citizens or qualifie{ ?titi:'The HFP is
;ilil;.;.d by the Managed Risk Medical Insurance
New'State Tobacco Tax Revenues
A pack of cigarette' 1g* 1st1,ro:911v 11.99
in'iuiit*nia, including 87 cents in. excise lli::
iil. -- -.ut*. increases the existing ^:tt]t"
;;";;;arettes iv $2'60 per pack effective
il; zo6i- e*i'tittg state law requires the Board
"?^eq,i"rirt
ion poi) to. increase taxes on other
tobacco products-J.rt ": P,::" -:"9tt:: :il
snuff-jnanamountequivalenttoanyincreasern
the tax on cigarettes' T"Jus' this measure would also
;tdt;" a cJmparable increase in the excise tax on
;;;;,"b"tco products' All of the additional tobacco
revenues (includingitrose on other tobacco products)
would be,used to support various new and existing
Local Health Coverage Programs. The County How Additional Tobacco Revenues Would
Health Initiative Matching
which is administered bY
(cHIM)
MRMIB
Fund Program'
and counties,Spent
from the excise tax increase would
provides health coverage for children in families with Revenues
deposited in a new fund called the
an income between 250 Percent
000 and $60
and 300 Percent of generallY be
FPL (between $50,,000 Per Year for a Tobacco Tax of 2006 Trust /Fund and would be
family of four). The CHIM Program relies on countY allocated for various specified Purposes'as shown in
funds as the match required to draw down
Be
For text ofProposition 86 see page 147
federal Figure I later in this analYsis.
***Analysis l6l
PROP TAX ON CIGARETTES
86 IN ITIA TTVE CON S TI TUTI ONAI AME N DME NT AAI D STATUTE.
ANATYSIS BY THE TEGISTAITVE ANATYST (CoNTINUID)
Backfill of Proposition I0 programs. An Additional Allocations.Funding would be
aunspecifiedamount of the additional excrse tax allocated for the support of nonprofit communityrevenues would be used to tully backfilt Proposition clinics;to help pay for uncompensated health care10 programs for early childhood development for a for uninsured persons provided by physicians; forloss of funding that would result from the enactment college loan repayments to encourage physiciansof the new tax measure. This is because the tax to provide medical services to low_income personsrncreasescontained in this measure are (1) likely m communities with insufficient physicians; toto result in reduced sales of to bacco products and provide prostate cancer treatment servrces; and for(2) could result in more sales of tobacco products services to assist individuals to quit snioking.for which taxes would.not be collected, such as for Health Maintenance ond Disease preventionsmuggled products and out-of-state sales. This,m Account. Under the measure, 42.25 percent of the
turn, would reduce the amount ofrevenues collected funds thatremained afterproviding theProposition l0through the excise taxes imposed under'Proposition
10. The amount of backfill payments needed to offset
backfill tunding would be allocated to a Health
would be determined by BOE.
Maintenance and Disease Pievention Account. This
any loss of funding for the Proposition 10 program funding would be used for the purposes outlined below:
. Nursing Education programs.These funds would
!e _used to expand nu.ring
"ao.uti* programsin UC, California
.State.Uni"oriry, ;;;;iVcollege, and privately operated ;;** educationprograms.
62lAnatysis***
Health Treatment and.services Account Underthe measure, 52.75 percent of the funds that remainafter providing the proposition lo;;;il1iffi;;
would be allocated toa Health Treut "."il"O ServicesAccount. This funding would U. ur.Jfo, tfre purposesoutlined below:
.
losyityt Funding. Nearly three_fourths of thefunds in this account would te ailocai"Oio trospitatsto pay their unreimbursed costs for emergencyservices .and to improve or expand emergencyservices, facilities, or equipment. Allocationswould be based largely on,the numberof personsthat hospitals heat in tt ei. "-.r;;;;epartmenrsand their costs for providing treatttr'Jare;;
patients who are poor. private nlspitais a.rd certainpublic hospitals, incruding ttrose ticensed to theUniversiry of California 1CC;, *oufJUJ.figible toreceive funding. Hospitals licensed r" ;;;;;;agencies or the federal govemment ,routa not beeligible for funding.
. Children's Heuhh Coverage Expansion Almostone-half of these funds woulO'te aitocat.J;expand the HFp to piovide health *r;;;; ;include (l) children from.families with incomesbetween 250 percent and 300 p.*n, of the FpLand (2) children from families with incomes upto 300 percent of the FpL who are undocumented
lmmlsraqts or.legal immigrants n* ,ro* etigiblefor HFp. This measure.requires MRMfB";;;
PHS to simplify the procedures for enrolling andkeeping children in HFp ano vreoi-car coverageand creates a pilot project to provide coverage foruninsured children in familiesiwith incomes above300 percent of the FpL.. Tobacco-Related programs. These funds wouldsupport media advertising and public relations
.campaigns, grants.to local health departments andother local organizations, and ,Ou"uti* p;;;r"r,for school children to prevent "rdrJd;;;;;;Funding would also go to state and local agenciesfor enforcing laws and court.settfementr'ffi;
regulate and tax the sale of tobacco products.Also, some funds would be used to evaluate theeffectiveness of these tobacco control f.ogru.r.. Health und Education programs. part of thesefunds would be set aside fb, ;uri;, n"* o.
TAX ON CIGARETTES PROP
IN ITIATIVE CO N STITUTIO NAT AMEN DMTNT AN D STATUTE'86
* * * ANADTSIS BY THE LEGI SLAIryE ANATYST tcoNrtNurPr
existing health Programs relaledto certain diseases some of the new Programs funded bY this measure
or conditions, includ.rng colorectal, breast,and wouldbe exemPted from state contracting rules for the
cervical cancer; heart disease and stroke; obesity; firsl five Years'
and asthma.Oversight Provisions'
' rs DHSThis measure requlrc
Heqlth and Disease Research Account. Under to prepare an annual rePort describing the Programs
the measure, 5 percent of the funds that remained that received additional gxclse tax funding and how
after providing the
would be allocated
backfill funding discussed above that funding was used. This infotmation would be
to a Health and Disease Research made available to the public bY DHS on its Web site
,{ccount. This tunding would be used to suPPort Programs receiving these funds would be subjeot to
medical research relating to cancer in gelreral and hudit' New state committees would be established to
breast and lung cancer in particular'In addition, it oversep the expansion of children's health coverage
would supPort research into fobacco-relateddiseases, and antiobesitY Programs'
as well as the effectiveness of tobacco confiol efforts,Hospital Chatges und Bilt Collections. HosPitals
Part.of these funds would be used to support a that are allocated funds under this measure for
statewide cancer regis1ry, a state program that collects emergencY and trauma care services wouldbe subject
data on cancer cases'to limits on what they could charge to certain Patients
in families with incomes at or below 350 percent of
Other Maior Prqvigions
: In addition to the provisions that raise tobacco
..;iJ;;;s and'p""o.these slnle.revenug:'" ftl1
measure contains a numter of .other,
significant
provisions, which are described below'
Existing Funding for Physician Payments
Continuetllnrecentyears,thestatehasspentalmost
$25 million p", ytu' in Proposition 99 funds -for
;*.;ttt* tol counties to reimburse physicians for
orr.o*prn.ated medical care for perspns who are
p"*- tUiJ measure reuuirel" that {ris .1ime
level of
iroporition 99 funds te allocated annually in the
future for this Purpose
the FPL. These have to adoPt
written Policies
practices an4
under certain cifcumstances , could not send unpaid
bills to collection agencles , garnish wages, or Place
liens on the homes of patients as a means of collecting
unpaid hosPital bills
Coordinqtion of Medical Semiees hY HgsPitals'
Subjeot to the aPProval of certain loeal officials,
hospitals receiving funding under this measure would
be allowed to coordinate certarn medical services,
including emergency serviceso with other hosPi tals.
For examPle, hosPitals would be Permitted to jointlY
share the costs of ensurlng the availabilitY of on-
call phYsicians who provide emergency servlces'
The measure seeks to exemPt such coordination of
emergency servlCes from antitrust laws that might
limit or Prohibit such coordination efforts'
FISCAL EFTECTS
This measure would have a number offiscal effects
on state an{lopal governments' The major fiscal
identified are discussed below.
hospitals would also
on their bill collection
Exp,enditure Rules' The funds allocated under
til;.rrr* would not be appropriated throueh the
;; state budget act and thus would not be subject
;;-th*g. by actions of the Legislature and Governor'
The additional revenues would generally have to be
;;;;il'il services noted above and could'not take
it . ptu* of existing state or local spendin*' tn: :fi:
;;;, ;"*,i.s qould not borrow tlrese n-ew revenues to
use for other pqrposes, but they could bq used t: dt"Y
a"*" uOOi ional iederal funds' Conffacts to i$plement
For text ofProposition 86 see page 147'
effects we have
***AnalYsis 163
PROP TAX ON CIGARETTES.
86 I N ITIA TIVE CON STITUTI ONAI, AM E N DME NT AN D STATUTE.
ANAIYSIS BY TH E TEGISLATIVE ANATYST (CONTINUED)
lmpacts on State and local Revenues
Rbvenues ffictqd by Consumer Responsa. Ourrevenue estimates assume that the excise Lx i";;;of $2.60 per pack is passed along to consumers bythe distributors of tobacco prodrrc[ wno actuaffy paythe excise tax. In other words, we assume that theprices of tobacco products would be,"i;; i"ril;;the excise tax increase. This would result in variousconsumer reSponses. The price increase is likely toresult in consumers reducirry the quantity of taxabletob?:c1 products that they purchase. 'Conru*.r,
could also shift their purchases so that taxes wouldnot be collected on tobacco prodgcts, such asthrough Internet purchases o. pur.t urJ, oirruggt.O
products.
Effects on State General Fund Revenues. Themeasure's increase in the excise tax would haveoffsetting effects on state General Fund revenues.On the one hand, the higher price and the ensuingdecline in consumption.of tobacco fr"Or.o wouldreduce state General Fund revenues fi:"_ ilrii;excise taxes. On the other hand the state,s GeneralFund sales tax revenues would increase because thesales tax is based on the price of the tobu..o;;;;;;
plus the excise tax. The decreases in revenues wouldapproximately equal the iqcreases in revenues.
Effeus on Local Revenues. Local governments
would likely experience an annual increase in salestax revenues of as much as $10 million.
The magnifude of these consumer responses isuncertain given the size of the proposed,"*-i;;;;;.
There is substantial evidence regarding ,n. ,rril,. of consumers to small and moderate ta* inc."ase,on tobacco products in terms of reduced tobaccoconsumption. As a result, for sma[_to_-oc.rui"
increasi:s inprice, the revenue impacts r* Ur;;;;;
E il;.#,:;J;-T.'".tr',;-#LiifJ1ti, r.:i,;;i,f: As a result, we believe that revenue estimates basedon traditional assumptions regarding this ,oo.*..response would likely be overstated. Therefore, ourrevenue estimates below assume a.greatetconsumer
response in terms of reduced tobacco
"onrurption to: this tax increase than has traditionally been the case.. These estimates are subject to unceriain,y, il*;;;;given a variety of factors, including ,frr'f"rg, i""changes involved.
Revenues From Tax fncrease on Tobacco. Products. We estimate that the increaS, in "*.i..taxes,would raise about $1.2 billion i" ZOOO_OZl"rr_
half year effect from January rhrough J*" 200t;wquld raise about $2.1 billion in 2007_0g fnrrt irfiyear impacQ. This excise tax increas.;Jd";;r;
slightly declining amounts of rbvenues th;r;;ftr;.
^"-
64lAnatysis***
Effects on Existing Tobacco Excise Thx R.evenues.The decline in consumption or touacco ;;;d"*caused by this measure would similarly ,J;;; rl;excise tax revenues that would be generated forProposition 99 and. r0 programs and io, the BreastCancer Fund. We estimat, tt ut the initial annualrevenue losses are likely to be about $l g0 millionliorProposition 10, about $90 million f"r pr"p".tfi"";;;
and less than $ l0 million for the g."urt Cun.er Fund.However, these losses would be more than offset inmost cases by additional tax revenues grn".ut"O Cythis measure, as discussed below.
fmpacts of New programs on State and LocalExpenditures
.
Slate and local government expenditures for theadminishation and operation of various programs
supported through this measure would generalty
increase irr line with the proposed inrr.ur" in excisetax revenues. Figure I (see,next page) shows themain purpose of the accounts established by theinitiative, the percentage of funds allocated to eachpurpose;'and our estimate of the funding that woulJbe available for eaeh account in the iir, ttt y.u,of tax collectiijn. These allocations would proUaUty
decline
-i.n
subsewent years as excise tax revenues
also declined, potentially resulting in u.or."rponding
("('
TAX ON CIGARETTES. PROP
, TNITIAITVE CONSTITUTIONATAMENDMENTAND STAIUTE 86
* * * ANALYSIS BY THE IEGISIAIIVE ANATYST tcot\rtNuror
I
u Because the overall revenues from the tobacco tax increase are subject to uncertainty, the actual allocations to
programs could be greater or less than the amounts shown here.
Totals may not add due to rounding.
Tobacco control research
Breast cancer research
Cancer research
Cancer registry
Lung cancer research
34.00 percent of account
25.75 percent
14.75 percent.
14.50 percent
11.0Q percent
$sz
24
T4
t4
10
Chi ldren's health coverage
Heart disease and stroke program
Breast.and cervical cancer program
Obesity, diabetes, and chronic diseases programs
Tobacco control media campaign
Tobacco control competitive grants program
Local health department tobacco prevention program
Asthma program
Colorectal cahcer program I
Tobacco preventiori education programs
Tobacco control enforcement activities
Evaluation of tobacco control programs
45.50
'8.50
8.00
7.75
6.75
4.50
4.25
4.25
4.25
3.50
2.25
0.50
percbnt of account
percent
percent
percent
percent
percent
percent
percent
percent
percent
percent'
percent
$367
69
65
'63
55
36
34
34
34
28
18
4
Hospital emergency and trauma care
Nursing education programs
Nonprofit community clinics
California Healthcare for lndigents Program-
reimbursement of emergency care physicigns
Tobacco cessation services
Prostate cancer treatment
Rural Health Services Program-reimbursement of
emergency care physicians
College loan repayment program to encourage
physicians to serve low-income areas lacking physicians
-80.75 percent
1.75 percent
1.75 percent
0.75 percent
74.50 percent of account
9.00 percent
5.75 percent
5.75 percent
18
18
8
$756
91
58
58
Backfill of California Children and Families First Trust
Fund-Proposition 1O
U rtspecif ied amount determ i ned
by Board of Equalization
$180
r Estimate of
2007-08 Funding
(Full Year in Millions)
Pulpose Allocation
$2,1 00Totrl Allocatrons
How Tobacco Tax Funds Would Be Allocated"
For text ofProposition 86 see page 147.
***Analysis 165
PROP TAX ON CIGARETTES.
86 INITATTVE CoNSTITUTIoNATAMENDMENTAND STATUTE.
o
ANALYSIS BY THE LEGISLATIVE ANALYST tcoN,:rINuEoI
decrease in state and local expenditures for these new
programs.
The state administrative costs associated with the
tax prov'isions 0f this measure would be minor.
lmpacts on 0ther Tobacco Tax-Funded
Programs
This measure would have a number of significant
fiscal effects on the three existing programs
supported by tobacco excise taxes-Proposition 99
(which supports various health and public resources
programs), Proposition 10 (which supports early
childhood development programs), and the Breast
Cancer Fund (which supports breast and cervical
cancer screening and breast cancer research
programs).
Proposition 99. This measure does not directly
backfill any Proposition 99 accounts for the loss of
revenues that would be likely to occur as a result of
the excise tax increase proposed in this measure.
Specifically, we estimate that this measure would
initially result in an annual funding reduction of
about $5 million for the public resources account and
initially almost $25 million for an account that can be
used to support any program eligible for Proposition
99 tunding.
However, while this measure would reduce
revenr€s for other Proposition 99 accounts, it would
also initially provide significant increases in funding
in the new accounts created under this measure for
activities comparable to those now funded through
Proposition 99. This includes health educatien and
tobacco research, hospital services, and physician
services. In the aggregate, these activities could
initially experience a net gain in funding of almost
$950 million if this measure were enacted.
Proposition,l0. Proposition 10 would receive full
backfill funding under the terms of this measure. We
estimate that this backfill would initially amount to
about $180 million annually.
Breast Cancer Fund. No backfill funding would
be provided for the Breast Cancer Fund to offset
the loss of revenues resulting from the tax increases
proposed in this measure. However, this measure
would allocate a set portion of the new tax revenues
for breast cancer research and breast chncer early
detection services, with the result that these activities
initially would likely experience a net gain of about
$80 million annually.
Revenues and Costs From Provisions
Atfecting Public Hospitals
Some of the hospital emergency services funding
provided under this measure could be allocated to
public hospitals licensed to state and local agencies,
such as those run by UC, counties, cities, and health
care districts. This and certain other provisions of the
measure could potentially result in increased revenues
and expenditures for support of these hospital
operations. The magnitude of the fiscal effects of all
of these provisions is unknown, but is likely to result
in a net financial gain for hospitals operated by state
and local government agencies up to the low hundreds
of millions of dollars 4nnually on a statewide basis. .
Fiscal lmpact on State and Counties From
Children's Goverage Provisions
Long-Ternt Increase in State Costs for Increused
HFP Enrollment. In the short term,. the revenues
allocated by this measure to expand HFP would
probably exceed the costs to make additional children
eligible for health coverage. This would particularly
be the case in the early years as enrollment gradually
increased. Any excess revenues for expanding
children's health coverage would be reserved to
support this same purpose in future years.
Over time, however, as the excise tax revenues
allocated for this purpose declined (for the reasons
mentioned above) and the number of children enrolled
in HFP grew the costs of the expanded HFP could
eventually. er:ceed the available revenues. Current
state law would permit MRMIB to limit enrollment
66 lAnalysis***
TAX ON CIGARETTES. PROP
INITIATIVE CoNSTITUTIoNALAMENDMENTAND STATUTE 86
* * * ANALYSIS BY THE LEGISTAIIVE ANALYST tcoNrtNuror
in the program to prevent this from occurring. If
actions were not taken to offset program costs at that
point, however, additional state financial support for
the program would be necessary. These potential
long-term state costs are unknown but could be
significant.
State and County Savings From Shffi in
Children's Coverage. This measure allows some
children now receiving health coverage in local health
cov6rage programs, such as CHIM, to instead be
enrolled in the expanded HFP. Also, some children
in low-income families receiving health care from
counties without local health initiatives would be
likely to become enrolled in HFP. These. changes
would likely result in unknown, but potentially
significant, savings on a statewide basis to local
governments,' particularly for counties.
The Medi-Cal Program could also experience
some state savings for emergency services as some
children would instead receive their coverage for
these and other services through HFP. These savings
to the state could reach the tens of millions of dollars
annually unless the state decided, as this measure
permits, to have these children continue to receive
emergency services through Medi-Cal.
are eligible for, but not enrolled in, Medi-Cal and
HFP would be signed up for mediial benefits and
existing enrollees would continue to be served in
these programs.
As noted earlier, this measure also directs the state
to establish a pilot project to provide health coverage
for dninsured children in families with incomes above
300 percent of the FPL. This would also increase state
caseload costs.
The net fiscal effect of these provisions is an
increase in state costs that could exceed $100 million
annually after a few years. Some of these costs
could be paid for using the new excise tax revenues
generated under this measure.
Potential State and Local Savings on Public
Health Gosts
Currently, the state and local governments incur
costs for providing (1) health care for low--income
persons and (2) health iilsurance coverage for state
and local government employees. Consequently,
changes in state law that affect the health of the
general populace would affect publicly funded health
care costs. Because this measure is likely to result in
a decrease in the consumption of tobacco products
which have been linked to various adverse health
effects, it would probably reduce state and local health
care costs over the long term. '
Some of the health programs funded in this
measure are intended to prevent individuals from
experiencing serious health problems that could be
costly to treat. To the extent that these prevention
efforts are successful and affect publicly funded
health care programs, they are likely to reduce state
and local government health care costs over time. In
addition, the proposed expansion of these state health
programs could reduce county costs for ilroviding
health care for adults and children in low-income
families.
The magnitude of state and local savings from these
factors is unknown but would likely be significant. '
Net Increqse in Stute Costs From Pilot Projects
und Simptified Enrollment. This measure requires
MRMIB and DHS to simplify the procedures for
enrolling and keeping children in H.!P and Medi-Cal
coverage. Fgr example, among other changes, these
provisions could allow applicants to "self-certify"
their income and assets on their applications for
coverage without immediately providing employer or
tax documents to verify their financial status. From
an administrative perspective, some changes that
simplified enrollment rules would reduce.state costs,
while others, such as changes in computer systems
for enrollment activities, would likely increase state
costs. As regards caseloads, these changes are likely
to increase program enrollment and, therefore, costs
for the state. This would occur because children who
For text ofProposition 86 see page 147.
* * *Analysis 167
PROP
86
TAX ON CIGARETTES.
INITIATTVE CONSTITUTIONATAMENDMENTANb STATUTE. * * *
ARGUMENT IN FAVOR OF PROPOSITION 86
Smoking Kills.
Public health experts agree: Taxing tobacco will save lives.
The Tobacco Control Section of the California Department
of Health Services has issued an analysis of Proposition 86
titled "Economic and Health Effects of a State Cigarette Excise
Tax Increase in California.
The California Department of Health Services has
determined that:
Proposition 86 Will Save Lives:. Prevent nearly 180,000 deaths due to smoking apong
California kids pow under the age of I7... Prevent approximately 120,000 additional deaths due'to
smoking among current California adult smokers who quit
smoking.
Proposition 86 Will Reduce and Prevent Smoking:. The tax increase alone wouldprevenfmore than 700,000 kids
now under the age of 17 from becoming adult smokers.. 120,000 high school students and 30,000 middle school
students would either quit or not start smoking.. More than half a million smokers in California would quit
smoking.. Califorilians would consume 312 million fewer packs of
cigarettes each year.
Proposition 86 Saves Money:. Nearly $16.5 billion saveij in healthcare costs.. Increases state rev.enue by over $2.2 billion per year.
. [See the reporJ for yourself atwwwyespropS6.iom.]
That's why Proposition 86 is supported by a broad coalition,
including:
American Cancer Society, American Heart Association
American Lung Association of California
American Acaiiemy of Pediatrics/California Chapter
The Childrerr's Partnership
American College of Emergency Physicians, California
Chapter
California Emergency Nurses Association
Association of California Nurse Leaders
California Hospital Association
League of United Latin American Citizens
California Black Health Network
Children Now
California Primary Care Association
Tobacco-Free Kids Action Fund
Los Angeles Chamber of Commerce
The initiative specificallyraises the tax on apack ofcigarettes
by $2.60 to h-elp fund some of California's.critical hsalthcare
needs, including emergency care services; health insurance for
children; nursing education; tobacco use prevention p.rograms;
enforcement of tobacco-related laws; afld research, prevention,
and treatment of serious hralth problems, including cancers,
heart diseases, stroke, asthma, and obesity.
Proposition 86 includes tough financial safeguards,
.including annual detailed public reporting of the use of tax
funds, independent audits, limits on administrative costs, and a
strict prohibition agairist the Legislature raiding the trust funds
fb1 any other government program. This means the money will
go exactly where voters intend.
This measure will save lives. With smoking-related illnesses
driving up our healthcare costs and overloading our healthcare
system, Proposition 86 will help discourage smoking and ease
some of thd problems caused by preventable, smoking-related
illnesses.
SAVE LIVES. TAX TOBACCO. VOTE YES ON
PROPOSITION 86.
CAR0LYN RHEE, Chair
American Canc6r Society, California Division
P.K. SHAH, M.0., President
American Heart Association, Western States Affiliate
TIM0THY A. MORR|S, M.D., Board Member
American Lung Association of California
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 86
Helping people stop smoking and keeping kids from
starting is important. Unfortunately, less than 10% of the
$2.1 billion in new tax mdney goes to plograns that help
smokers quit or keep kids froni siarting. Hbreh what's really
in the initiative:. Huge hospital corporations are spending millions
prorpoting Prop. 86 because they will pocket hundreds
of millions of dollars every year. HMOs will also get
.' millions of dollars each yeai.. Almost 40Yo of the $2,1 billion in new tax money
from Prop. 86 goes to hospitals--THAT'S OVER
$8OO MILLION A YEAR THAT HAS VIRTUALLY
NOTHING TO DO WITH STOPPING SMOKING!. The $2.1 billion comes froni an unfair $2.60 tax increase
on each pack of cigarettes-an increase of almost 300%.
Here's what Prop. 86 is really all about:. Section 9 gives hospitals an exemption to antitrust laws.. There's nothing in Prop. 86 that limits what hospitals can
' charge taxpayers foremergency services fortheuninsured.
This amounts to an open taxpayer checkbook!. There are no gruarantees on how the money will be
spent.. Under California law approved by voters (Proposition
98), appfoximately 40o/o of any new taxes are,dedicated
to our schools. The huge hospital corporations don't want
to share with our schools anA nas, so they included a
CONSTITUTIONAL EXEMPTION (Section 15) so that
NONE of these funds will go to our schools.
Check it out for yourself: www.86facts.org.
Prop. 86 is really about special interests amending our
Constitution for their benefit.
No on 86.
MONICA WEISBRICH, RN, Operating RoomNurse
JAIME R0IAS, Presidept
California Hispanic Chambers of Commerce
MALCOLM SIMPS0N, Public School Teacher
68 I Alguments * * * Arguments printed on this page are the opinions of the authors and hare not been checkedfor accuracy by any oJfcial agency.
]AX ON CIGARETTES
* * * INITIATTVE CONSTITUTIONALAMENDMENTAND STATUTE
PROP
86
ARGUMENT AGAINST PROPOSITION 86
VOTE "NO'' ON PROPOSITION 86-STOP THE $2.1
BILLION TAX HIKE!
We all want to improve our healthcare system, but
Proposition 86 is the wrong solution. Prop. 86 is an unfair tax
i,ncrease qupporled by special interests who are amending our
Constitution to benefit themselves.
Prop. 86's proponents say it's about encouraging people not
to smoke, but it isn't. It's really a money grab by huge hospital
corporatiops who will reap hundreds of millions of taxpayer
dollarsBach year!. Less than lDYo of the tax fevenues go toward helping
smokers quit or keeping kids from starting.. The largest share-almostADo/o-goes tohospitals, many
of which are funding the campaign for the new tax.. HMOs willpocket millionsfromProp. 86.
WHY ARE HUGE HOSPITAL .CORPORATIONS
SPENDING MILLIONS TO PASS PROP. 86?. Hospitals wrote Prop. 86 to give themselves an exemption
to antitrust laws, givlng them legal protection to diwy up
and limit many medical services, and then raise prices
without worrying about competition.. Prop. 86 puts no limits on what hospitals can bill
taxpayers for emergency services f-or the uninsured. Why
should hospitals be allowed to charge taxpayers several
times what they charge insurance companies for the same
treatment?
PROP,86: ANOTHER LOTTERY MESS
Like the state lottery, it will be nearly impossible for voters
to know howthe newtaxes will be spent. Prop. 86 lists program
after state program that gets a cut of the estimated $2.1 billion
in new tax revenue. r
. PROP. 86: NO ACCOUNTABILITY TO TAXPAYERS
Prop. 86 throw.s millions of dollars at new bureaucratic
state programs without adequate legislative or governmental
oversight. There are NO GUARANTEES how the money will
actually be spent or assurances the money won't be wasted. .
PROP. 86: INCREASES OUR DEFICIT
Prop- 86 tontui^ 38 pages of spending nandates. Bnt
experts agree that the amouniof mon6y raise-d by this tobaccb
tax will decline over time. Declining revenues and demands to
fund Prop. 86's programs will only worsen our deficit. Other
important programs like education, transport4tion, and. law
enforcement might have to be cut, or taxes raised further.
PROP. 86: INCREASES CRIME
Law enforcement groups oppose Prop. 86 because it will
increase crime and smuggling. Stolen and smuggled cigarettes
are already a big source of money for gangs and organized
crime. IfProp. 86 passes, a single truckload ofstolen cigarettes
could beworth over $2 million to criminals.' PROP.86: UNFAIR
Prop. 86 taxes smokers to pay for programs that have nothing
to do with smoking, like obesity programs. Less than l0oh of
the tax revenues go toward helping smokers quit or keeping
kids from starting.
PROP. 86 : LOCKED INTO OUR CONSTITUTION
Proposition 86 amends our Constitution and statutes. When
problems and abuses are discovered, it will be nearly impossible
for the Governor or the Legislature to fix them, The Constitution
should not be changed for a special interest money-grab.
Pleas e j oin health pr ofessionals, law enforcement, taxp ayers,
and small busineSsds in voting NO on Proposition 86.
TARRY McGARTHY, President
Callfornia Taxpayers' Association .
IAMES G. KNIGHT, M.D., Fast President
San Diego County Medical Society
STEVEN REMIGE, President
Association for'Los Angeles Deputy Sheriffs
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 86
Makenomistake;,bigtobaccocorporationsarebankrolling Read Prop. 86 for yourself. You'll see tlrat it includes
oppgsition to frop. tiO. " specific a1d igugh financial safeguards, independent audits,-
Raising cigarette taxes means fewer people will smoke- and strict limits on administrative costs. Funding is directsd
especiallyiid"s. Tirat hurts tobacco comp'bny profits. to proven, iuccessful public health programs..-They\e
seen the report by the C;lifornia Department Californianspay.morethan$8_!illioneachyearinmedical
of Heaith Services which says'that Prop. 86 will reduce the costs due to smoking-that's_$700 per family per year-
number of cigarettes sold in
-California by 312 million paclcs .whether you smoke or not. !!e Qgpaltmeqt of Health Services
each year. report confirms thatProp. 86.will help reduce those costs.
The report also says that Prop.,86 will prevent 700,000 kids _ Big .tgbac^c_o will do, qay, and spend anything to defeat
from staJiing to smoLe and savb 300,000'lives Proposition 86. Don't believe it.' Tobacco companies invest over $l billion a year marketing Save Lives. Reduce Smoking'
cigarettes in California. This is a market they won t give up . Vote Yes on Proposition86.
without a fight. l
When eiecutives of the tobacco companies were called MltA GARCIA, R.N., Member
before Congress and put under oath, iicredibly, each and American Heart Association, Western States Affiliate
every one of them lied by testifying that cigarettes are not Wf tLlE G9FFNEy, M.0., pACS, presidentaddictive. American Cun""i'So"i"tv, cutitorniu Diuirion 2006-07
They lied to Congress under oath and now they're lying to RICK D'NALDS'N, ph.D; RGB Chairyou' . 1, . ., AineticanLu-ng-e'sro"iuiionoicaliforniaTheir arguments against Prop. 86 are outright distortions
and untruths.
Argumentsprintedonthispagearetheopinionsoftheauthorsandhavenor'beencheck"d\oro":curo"ybyanyfficialagency. ***AfgUmentS 169
PROPOSITION ATTERNATIVE ENERGY. RE S EARCH, PRODUCTION,
INCENTIVES. TAX ON CATIFORNIA OIt PRODUCERS.
IN ITI,ATIVE CON STITUTI ONAL AMEN DMENT AN D STAruTE.87
OFFICIAL TITLE ANO SUMMARY * * *Prepared by the Attorney General
ATTERNATTVE ENERGY. RESEARCH, PR0DUCT|0N,
INCENT|VES. TAI 0N CAHF0RNTA 0rr PRoDUCERS.
rNfTrATrvE c0|{sTrTUTroNAL AMENDMEilT'AND STATUTE.
. Establishes $4 billion program with goal to reduce petroieum cgnsumption by 25o/o,with research and production
incentives for alternative energy, alternative energy vehicles, energy efficient technologies, and for education and
training.
. Funded by tax of l.5Yo to 6% (depending on oil price per barrel) on producers of oil extracted in California.
. Prohibits producers from passing tax to congumers.
. Program administered by new California Energy Alternatives Program Autfrority. rl
. Prohibits changing tax while indebtedness remains.
. Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
. New state revenxes-depen{ing on the interpretation of the measure-from about $225 million to $485 million
annually from the imposition of a severance tax on oil production, to be used to fund $4 billion in new alternative
. ;:::flli:ffit:::'Jl';;..".nues rrom oil production on state lands orup to $15 mitlion annually; reductions
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.
ANIATYSIS BY THE LEGISLAIIVE ANAIYST
BACKGROUND
Caljfornia Oil Production. In 2005, California's
estimated oil production (excluding federal offshore
production) totaled 230 million barrels of oil-an
average of 630,000 barrels per . day. California's
2005 oil production represents approximately
12percentof U.S. production, making California the third
largest oil-producing state, behind Texas and Alaska. Oil.
production in California peaked in 1985 and has declined
on average, by 2 percent to 3 percent per year since then. In
2005, California oil production supplied approximately 37
percent of the state's oil demand, while Alaska production
supplied approximately 21 percent, and foreign oil supplied
about 42 percent.
Virtu.ally all of the oil produqed in California is
delivered to California refineries. In 2005, the total
supply of oil delivered to oil. refineries in California
was 674 million barrels, including oil produced in
California as well as outside the state. Of the total
oil refined ln California, approximately 67 percent goes to
gasoline and diesel (transportation fuelS) production.
Oit-Retated Tiuation in CahfurniuOil producers pay the
state corporate income tax on profits earned in Califomia.
Oil producers also pay a regulatory fee to the Department
of Conservation (which regulates the production of oil in
the state) that is assessed on production, with the exception
of production in federal offshore waters. This regulatory
fee is used to fund a program that, among other activities,
oversees the drilling, operatioq and maintenance of oil wells
in California. Currently, producers pay a fee of 6.2 cents per
barrel of oil produced which will generate total revenues of
$14 million in200647. Additionally, property owners in
California pay local property taxes op the value of both oil
extraction equipment (such as drills and pipelines) as well
as the value ofthe recoverable oil in the ground.
70 I Title and Summary/Analysis * * *
ft/
ATTERNATTVE EN ERGY. RE SEARCH, PRODUCTIONI
INCENTTVES. TAX ON CALIFORNI-A OIL PRODUCERS.
IN ITIAIIVE CON STITUTIONAL AMEN DMENT AN D STAIUTE.
PROP
87
* * * ANATYSIS BY THE LEGISLATTVE ANAIYST tcoNTINutoI
PROPOSAT the full $70-yielding a tax of $4.20 per barrel. On the
other hand, it could be interpreted to apply on a marginal
rate basis similar to the income tax. For example, if the
gross value is $70 per barrel, the first $10 is not taxed
the value from $10 to $25 is taxed at 1.5 percent, and so
on-yielding a tax of $2.17 per barrel.
In general, for a liven period of time, the single rate
interpretation would generate twice as much tax revenue
as would the marginal rate interpretation. The issue of
the application of the t'ax would presumably !e resolved
by regulations adopted by the California State Board of
Equalization (BOE) and interpretation by the courts.
Passing Along thte Cost of the Tax to Consumers. The
measure states that producers would not be allowed to pass
on the cost of this severance tax to consumers through
increased costs for oil, gasoline, or diesel fuel. The
BOE is charged with enforcing this prohibition against
passing on the cost of the tax. While it may be difficult to
administrqtively enforce this provision (due to the many
factors that determine oil prices), economic factors may
also limit the extent to which the severance tax is passed
along to consumers. For'example, the global market for
oil means that California oil refiners have mdny options
for purehasing crude oil. As a result, oil refiners facing
higher-priced oil from California producers coul{ at sonie
point, find it cost-effective to purchase additional oil from
non-California suppliers, whose oil would not be subject
to this severance tax.
Tbrm of the Ta.x The measure directs that the new
California Energy Alternatives Program $uthority
(Authority), discussed below, shall spend $4 billion for
specified purposes within ten years of adopting strategic
plans to implement the measurg. The revenues are to be used
for new spending (that is, they cannot be used to replace
current spending). Under the measure, the Authority has
the ability to raisq program fund! in advance of collecting
severance tax revenues by selling bonds that would be paid
back with future severance tax revenues.
The severance tax would expire once the Authority has
spent $4 billion and any bonds issued by the Authority are
paid off. The lerigth of time that the tax would be in effect
will depend on several factors, including the interpretation
of the tax rate, the future price and production of oil, and
Severance Tac on'Oil Production in Caffirnia.
Beginning in January 2007, the measure would impose a
severance tax on oil production in California to generate
revenues to fund $4 billion in alternative energy programs
over time. (The term "severance tax" is commonly usgd to
describe a tax on the production of any mineral or product
taken from the ground, including oil.) The measure defines
"producers," who are required to pay the tax, broadly to
include any.person who extracts oil from the ground or
water, owns or manages an oil well, or owns a royalty
interest in oil.
The severance tax would not apply to federal offshore
production beyond three miles from the coast. The measure
is unclear as to whether the severance tax would apply to oil
production on state-owned lands (which includes offshore
production within three.qfles of the coast) oi productign
on federal lands in the state. Additionally, the severance
.tax would not apply to oil wells that produce less than ten
barrels of oil per day, unless the price of oil at the well
head was above $50 per barrel. At current prices and levels
of production, the tax would apply to about 230 million
barrels of oil produced in the state annually if state and
federal lands aie in0luded or about 200 million barrels of
oil production annrially if they are not included.
Thx Rate Structure, The measure states that the tax
wouldbe "appliedto all port'ions of the gross value of each
barrel of oil severed as follows:" R .
. 1.5 percent ofthe gross value ofoil from $ I 0 to $25 per
barrel;.
. 3.0 percent of the gross value of oil from $25.01 to $40
per barrel;
'o 4.5 percent of the gross value of oil ftom $40,01 to $60
per barrel; and
. 6.0 percent of the gross value of oil from $60.01 per
barrel and above.
The wording of the measure regarding the application of
the tax rates could be interpreted in two different ways. On
one hand it could be interpreted such that the tax would
be applied on a single rate basis on the full grosg value of
oil per barrel. For example, if the gross value is $70 per
barrel, the tax would be applied at arate of 6.0 percent on
For text ofProposition 87 see page 160.
***Analysis 171
PRO P ALTERNATIVE EN E RGY. RE S EARCH, PRODUCTION,
87 INCENTIVES. TAX ON CALIFORNIA OIL PRoDUCERS.
I N IT IATIVE CON STITUTIONAT AMEN DME NT AN D STATUTE.
ANALYSIS BY THE LEGISTAIIVI ANALYST tcoNrrNuror
decisions about using bonds. Because the measure directs
the new authority to spend $4 billion within ten years, the
tax will be in effect at least long enough to generate this
amount ofrevenue and longer ifbonds are issued.
Depending on these variables, the term of the tax would
range from less than ten years to several deiades. For
example, the shorter period would result under the single
tax rate andlor higher oil prices and production levels.
Alternatively, a longer period would result under the
marginal taxrate and/or lower oil prices and production.
Tax Revenues to be Deposited in New Special Fund.
The proceeds ofthe severance tax would be deposited in
a new fund created by the measure, the California Energy
Independence Fund. These revenues would not be eligible
for loan or transfer to the state's General Fund and would
be continuously appropriated (and thus, not subject to the
annual state budget appropriation process).
ReorganiTed State Entity to Spend the Tax Revenaes,
Thg measure would reorganize an existing body in state
government, the California Alternative Energy and
Advanced Transportation Financing Authority, into a
new California Energy Alternatives Program Authority
(Authority). This reorganized authority would be governed
by a board made up of nine members. including the
Secretary for Environmental Protection, the Chair of the
State Energy Resources Conservation and Development
Commission, the Treasurer, and six members of the
public who have specific program expertise, including:
economics, public health, venture capital, energy
efficiency, entrepreneurship, and consumer advocacy. The
Authority is required to develop strategic plans and award
funds to encourage the development and use of alternative
energy technologies. The board would appoint a staff to
administer various programs specified in the measure.
One of the stated goals of the measure, to be achibved
tlnough the various programs funded by it, is to reduce the
use of petroleum in California by 25 percent from 2005
levels by 2017.The actuql reduction would depend on the
extent to which the measure was successful in developing
and promoting-and consumers and producers used-new
technologies and energy efficient practices.
Allocation of Funds. The funds generated from the
severance tax, as well as any bonding against future
severance tax revenues, would be allocated as follows,
after first covering debt-service costs and expenses to
collect the severance tax:
. Gasoline and Diesel Use Reduction Account (57.50
, Peicent)-for incentives (for example, consumer loans,
grants, and subsidieS) for the purchase of alternative fuel
vehicles, incentives for producers to supply alternative
fuels, incentives for the production of alternative fuel
infrastructure (for example, fueling stations), and grants
and loans for private research into alternative fuels and
alternative fuel vehicles.
. Reseurch and Innovation Acceleration Account
(26.75 Percent)-for grants to Califorhia univerdities
to improve the economic viability and accelerate the
commercialization of renewable energy technologies and
energy effi ciency technologies.
.Commercializution Acceleration Account (9.75
Percent)-for incentives to fund the start-up costs and
accelerate the production and distribution of petroleum
reduction, 'renewable energy, energy efficiency, and. ,
alternative fuel technologies and products.
. Public Educatiotn and Administration Account (3.50
Percent)-for public education campaigns, oil market
monitoring, and general administration. Of the 3.5 percent,
at least 28.5 percent must be spent fo? public education,
leaving a maximum of 71.5 percent of the 3.5 percent (or
roughly 2.5 percent of total revenues) for the Authority's
administrative costs.
. Vocatioial Training Account (2.50 Percent)-for job
training at community colleges tb train students to work
with new alternative energy technologies.
FISCAL EFFECTS
New State Revenues to Be llsed for Dedicated
Purposes. Our estimates below are based on 2005 oil
production levels and the average price ofoil for the first
six months of 2006. The severance tax would rise from
about $225 million to $485 million annually. The level of
revenue generated would depend both on (l) whether the
tax was interpreted using the marginal rate interpretation
or the single rate interpretation and (2) whether oil
production on state and federal lands is taxed. However,
actual revenues collected under the measure will depend
72 lAnalysis***
. {/'i(
ATTERNATIVE ENERGY. RESEARUH, PRODUCTION,
INCENTIVES. TAX ON CALTFORNTA OIt PRODUCERS.
I N TTIATIVE CO N STITUTIONAL AME N DME NT AN D STAIUTE.
PROP
87
* * * ANALYSIS BY THE TEGISTAIIVE ANALYST tcosrtuutu
on both future oil prices and oil production in the state. As
these variables are difficult to predict, there is uncertainty
as to the level ofrevenue collections.
State and Local Administrative Costs to Implement
the Meusure. Because programs of the size and type to be
overseen by the Authority have not been undertaken befoie
in the area of transportation fuels, the administrative costs
to the Authori.ty to carry out the measure are unknown.
Under the Brovisions of the measure, up to 2.5 percent
of revenues in the new fund would be available to the
Authority for its general administration costs. This would
on average set aside from about $5 rniilion to $tZ million
annually for administration. The amount of administrative
funds available would depend both gn (1) whether the tax
was interpreted using the marginal rate interpretation or the
single rate interpretation and (2) whether oil production on
state and federal lands is taxed.
Costs to BOE to collect the severance tax and
administrative costs associated with the issuance
and nepayment of bonds by the Treasurer's Office are
not counted as part of the Authority's administration
budget and are to be paid from the severance tax
revenues. Additionally, in oil-producing counties, local
administrative costs would increase by an unknown but
probably minor amount, due to increased reassessment
activity by local property tax assessors to account for
the effects.ofthe severance tax on oil-related property
values.
Reduction in Local Property Thx Revenues. Local
property taxes paid on oil reserves would decline under
the measure relative to what they otherwise would have
been, to the extent that the imposition of the severance
tax reduces the value of oil reserves in the ground and its
assessed property value for tax purposes. Although the
exact size of this impact would depend on future oil prices,
which determine both the severance tax rate and the value
of oil reserves, it would likely not exceed a few million
dollars statewide annually,
Reduciion in State Income Tax Revenues. Oil
producers would be able to deduct the severance tax
from earned income, thus reducing their state income
tax liability under the personal income tax or corporation
tax. The extent to which the measure would reduce state
income taxes paid by oil producers would depend on
various factors, including whether or not An oil producer
has taxable'income in any given year, the amount of such
income that is apportioned to California, and the tax rate
applied to such income. We estimate that the reduction
would likely not exceed $10 million statewide annually.
Potential Reduction in State Rev,enues From Oil
Production on State Lands. The state receives a portion of
the revenues from oil production on state lands, including
oil produced within three milcs of the coast. If the measure
is interpreted to apply to production on these state lands,
then the severance tax would reduce state General Fund
revenues by $7 million to $15 million annually, depending
on whether the measure is interprpted using the marginal
rate or the single rate.
Potentiul Reductions in Fuel Excise Tax and Sales
,Tax Revenues. The measure could change both the amount
and mix of luels used in California, and thus excise and
sales tax revenues associated with them. For example, to
the extent that the programs funded by the measure are
successful in reducing the use of oil for transportation
fuels, it would reduce to an unknown extent,the amount of
gasoline and diesel excise taxes paid to the state and the
sales and use taxes paid to the state and local governments.
These reductions would'be partially offset by increased
taxes paid on alternative fuels, such as ethanol, to the
extent that the measure results in their increased use.
Potential Indirect Impacts on the Economy.In addition
to the direct impacts of the measure, there are potential
indirect effects of the measure that could affect the level of
economic activity in the state.
On one hand, by increasing the cost of oil production, the
severance tax could reduce production, reduce investment
in new technologies to expand production, and/or modestly
increase the cost of oil products to Californians. This could
have a negative impact on the state's economy.
On the other han{ using revenues from the severance
tax to invest in new technologies may spur economic
development in California. This would occur to the extent
that new technologies supported by the rneasrire are
developed and/or manufactured in the state. This could
have a positive impact on the state's economy.
Taken together, these economic factors could have
mixed impacts on state and local tax revenues.
For text ofProposition 87 see page 160.
***Analysis 173
PROP
87
ATTERNATIVE ENETIGY. RESEARCH, PRODUCTION,
INCENTIVES. TAX ON CATIFORNIA OIL PRODUCERS.
INITI.ATIVE CONSTITUTIONALAMENDMENTAND STATUTE. * * *
ARGUMENT IN FAVOR OF PROPOSITION 87
YES ON 87: MAKE OIL COMPANIES PAY THEIR FAIR
SHARE-FOR CLEANER ENERGY.
Had enough of oil companies charging outrageous prices
and making obscene profits?
Had enough polluted air, asthma, lung disease, and cancer?
Had enough of oil companies funding opposition to Cleaner,
Cheaper Energy? Enough is enough.
It's time to make oil companies pay their fair share so we
ian use cheaper alternative fuels and reduce air pollution that
causes lung dispase and cancer.
VOTING YES ON PROPOSITION 87 WILL MAKE OIL
COMPANIES PAY THEIR FAIR SHARE.
In Louisiana, Alaska, and even Texas, oil companies pay
billions in oil drilling fees, but they pay almost nothing in
California. California takes in more revenue from hunting and
fishing licenses than it does from oil drilling fees.
Under Prop. 87, the oil companies will finally pay us the
same level offees they pay in other states.
They can afford it. The oil companies opposing this
initiative made $78 billion in profits last year. Their profits
are so high that EXXON gave its CEO Lee Raymond a $400
million retirement payout. Enough is enough.
PROP. 87: NO COST TO CONSUMERS. OIL
COMPANIES PAY,
California's Attorney General has confirmed that Prop. 87
makes it illegal for oil companies to raise gas prices to pass
along the cost to us.
Ifthey do, they'll break the law and could be prosecuted.'
The U.S. Suprer.ne Court has already ruled that states
can prohibit.oil companies from passing fees like this on to
consumers. Just look at the other slates that have oil drilling
fees. They all pay less for gas than California.
:That's why oil companies are spending millions to defeat
Ptop. 87: because they know it's illegal to pass the cost on to us.
PROP. 87: CLEANER ENERGY AND CLEANER AIR.
Prop. 87 makes oil companies pay for cleaner energy.
It provides for cash rebates to consumers who buy clean'er,
alternative fuel vehicles and incentives for more renewable
energy like solar and wind power.
It will create thousards of new jobs and economic growth.
It will reduce our dependence on oil from Saudi Arabia and
Iraq-*1rirn provide 47% of California's imported oil.
Voting YES on Prop. 87 will reduce air pqllution in
Caldornia.
Pollution from cars and trucks is making us sick. Every
year, cars put tons of lung-damaging smog and soot into the air
that send children to the hospital and cause asthma attacks.
That's why the Coalition for Clean Air and California
doctors and nurses AlL SUPPORT Proposition 87.
PROP. 87: NO NEW BUREAUCRI4.CY.
Prop. 87 uses an existing state agency and requires strict
enforcement and accountability through independent audits,
public hearings, and annual progress reports,
Nobel-prize-winning scientists, California environmental
and consumer groups, educators, labor and agriculture groups
all agree. It's time we take control of our future.
For Cleaner Air-For Alternative Energy Choices-For
Less Dependence on Foreign Oil . . . Finally, Fairness.
MAKE OIL COMPANIES PAY THEIR FAIR SHARE.
VOTE YES ON 87, FOR CLEANER ENERGY..
wlww.YESon|T.com
TAURA KEEGAN BOUDREAU, CEO
American Lung Association of California
WINST0N HlCK0X, Former Secretary
California Environmental Protection Agency
JAMIE C0URT, President
Foundation for Taxpayer and Consumer Rights
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 87
"The sponsors' contention that Proposition 87 would not
caus e higher gas prices is incorrect. "-William Hamm, Ph.D.
Former Legislative Analyst, State of California
"Proposition 87 attempts a worthy goal, but does so in
a counterproductive and costly manner. It would shrink
Califurnia's oil supply, increase dependence on foreignoil, and result in higher gasoline prices."-Professor'
Philip Romero, Ph.D., Former Chief Economist, California
Governor's Office
Proposition 87 is not a tax on oil company profits-as
proponents would like you to believe. It's a $4 BILLION TAX
on California oil production. It would make California's oil
the highest taxed in the nation, by far. Analysts report it would
decrease state oil production. Replacement oil would have to be
imported from the Middle East and elsewhere. The added,costs
of transporting and refinipg imported oil would be lawfully
passed on to consumers at the gas pump. Do we really want
higher gas prices?
And, did proponents really claim Proposition 87 is not new
bureaucracy? It's the very definition of bureaucracy, with an
appalliag lai,ck of accountability :
- 50 political appointees.
- Unlimited staff.
- Thq power to spend $4 billion outside the state budget
revlew process.
- No requirement they spend all those new taxes in
California, or even in the U.S.
- Special exemptions from laws designed to protect
taxpayers.
- Special exemption from California's education funding
guarantee, robbing schools of their fair share.
Proposition 87 also reduces revenues available for fire
protection and public safety.
Organizations representing 85,000 public safety officials
urge Californians to: VOTE NO on 87.
KEVIN R. NIDA, President
California State Firefighters' Association
RAY H0LDSW0RTH, Past Chair
California Chamber of Commerce
AttAN ZAREMBERG, President
Californians Against Higher Taxes
74 I AfgUmentS*** Argumentsprintetlpnthispagearetheopinionsoftheauthorsandhavenotbeencheckedforaccuracybyanyfficial'agency.
(- .' r'
AITE RNATTVE ENERGY. RESEAREH, PRODUCTTON,
INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS.
* * * INITIATIVE CONSTITUTIONATAMENDMENTAND STAIUTE,
PROP
87
ARGUMENT AGAINST PROPOSITION 87
AREN'T GAS PRICES HIGH ENOUGH ALREADY?
DO WE REALLY WANT TO INCREASE OIL TAXES
BY ANOTHER $4 BILLION? ;'We all agree we need to advance altefnative energy.
But, Proposition 87 is not the way to get there. Increasing
California oil taxes by $4 BILLION to fund a new state
bureaucracy-that isn't even required to produce results-is
a recipe for waste, not progress.
It's also the road to more proflems .
HIGHER TAXES ON DOMESTIC OIL : MORE
DEPENDENCE ON FOREIGN OIL. ,
Economists report that taxing California oil production will
reduce in=state oil production and increase our dependenca on
foreisn oil. Oil from the Middle East and other countries costs
mo.e"to get here and costs more to refine once here.
HIGHER OIL TAXES, HIGHER GAS PRICES.
Prop. 87's sponsors claim it won't increase gas prices. Are
voters supposed to believe a $4 BILLION tax increase on
California oil won't impact gas prices at the pump?
PROP. 87 CREATES A NEW STATE BUREAUCRACY
WITH 50 POL]TICAL APPOINTEES.
It lets them spend taxes outside the normal'checks and
balances that govern other state agencies, outside the state
budget review process, and exempt from important laws and
taxpayer safeguards that apply to other agencies.
PROP. 87 LETS THE NEW BUREAUCRACY KEEP
SPENDING EVEN IF THEY'RE NOT PRODUCING
RESULTS.
It lets the political appointees tax and spend, year after
year after year, even if they're making absolutely no progress
ieducing oil consumption 6r advancing alternative energy use.
PROP 87 ROBS SCHOOLS OF THEIR FAIR SHARE
OF NEW REVENUES.
One of the mgst important protections oui schools have
is a constitutional guarantee that a portion of new state tax
revenues be spent i1 the classroom. But, Prop. 87 excluded
itself from that requirement. One of California's leading
education finahce experts and the former Secretary of
Education rep orts'. 'At a time when Califtrnia schoolfunding
is already below the'national averag/ Prop. 87 could deny
schools their fair share of up to $ L9 billion in new revenues
over the next 10 years."
PROP. 87 WOULD REDUCE TAX REVENUES USED
FOR EDUCATION, PUBLIC SAFETY, HEALTH CARE,
AND TRANSPORTATION NEEDS.
Ptop. 87 would reduce general fund and property tax
revenues. Rebd the Legislative Analyst's report in your voter
pamphlet.
HIGHER GAS PRICES HURT FAMILIES, SMALL
BUSINESSES, AND SENIORS.
Everyone bears the cost ofhigh gas prices. The last thing we
need is'a ballot proposition that further drives up oil prices.
EVERYONE AGREES WE NEED TO ADVANCE
ALTERNATIVE ENERGY, BUT PROP. 87 IS NOT THE
WAY TO GETTHERE
'tGqsoline prices in Califurnia are high enough already.
Proposition 87 would just add insult to injury. This $4
billion oil tax would result in even higher gas prices
at the pump. We recommend drivers. vote: NO'on 87."
--Thomas V. McKernan, President and CEO,
Automobile Club of Southern California
Join more than 150 organizations, taxpayer grgups,
consumers, California businesses, labor, parents, educators,
seniors, and public safety officials
VOTE NO on 87. h's a recipefor waste, not progress.
LARRY McCARTHY, President
California Taxpayers' Association
DANIEL CUNNINGHAM, President
California Small Business Alliance
MARIAN BERGES0N, Past President
California School Boards Association
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 87
DO YOU TRUST THE OIL COMPANIES?
Oil companies are pqying for the multimillion dollar
misinformation campaign against Prop. 87.
See for yourself: Califomia StateWebsite: r.ww.c al-access. ss.ca. gov
Notice the oil companies didn't sign the statement at the top of
this page? What else are they hiding? THE FACTS:. PROP. 87 MAKES,OIL COMPANIES PAY THEIR FAIR
SHARE.
Oil companies pay billions in drilling fees in New Mexigo,'
Alaska, Louisiana, and even Texas. Califomia is the only
state where the oil companies do not pay similar drilling
fees., PROP, 87 MAKES IT ILLEGAL FOR OIL COMPANIES
TO PASS THE COST ON TO CONSUMERS BY RAISING
GAS PMCES. Official Initiative Language, $ a200aft)
Think about it: lf the oil companies could really pass the
cost on tg us, why would they be spending millions to defeat
Prop. 87?. PROP. 87 MEANS CLEANER AIR, LESS ASTHMA,
That's why Prop. 87 is endorsed by the American Lung
Association.. PROP, 87 MEANS MORE ALTERNATII/E FUELS AND
LESS DEPENDENCE ON FOREIGN OIL,
Almost half of California's imported oil comes from Saudi
Arabia and Iraq. Prop. 87 would reduce our dependence on
foreign oil. That's why former Secretary of State Madeleine
Albright endorses Prop. 87.. PROP. 87 HAS NO NEW BUREAUCRACY.
Prop. 87 requires independent audits, strict limits on
administrative spending, open meetings with accountability,
and oversight by public health and energy experts-not
politicians. Official Initiative Language, $ 2600a@)
DON'T BE FOOLED BY THE OIL COMPANIES.
ENOUGH IS ENOUGH. MAKE THE OIL COMPANIES
PAY THEIR FAIR SHARE.
VOTE YES ON 87. FOR CLEANER, CHEAPER
ENERGY.
DR. MARI0 M0L|NA, Nobel Prize in Chemistry
University of California, San' Diego
TIM CARMICHAEI, President, Coalition for Clean Air
JAMIE COURT, President
Foundation for Taxpayer and Consumer Rights
Argtonents printed on this page are the opinions ofthe authors and have not been checked for accuracy by any fficial agency. * * * AfgUmentS I 75
PROPOSITION EDUCATION FUNDING. REAL PROPEKI T PARCEL TAX
I N ITTATTVE CON STITUTIONAT AMEN DMENT AN D STATUTE.
OFFICIAL TITTE AND SUMMARY * * *Prepared by the Attorney 0eneral
:EDUCATION FUNDII.IG. REAI PROPERTY PARCET TAX.
INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
. Provides additional public school funding for kindergarten through grade 12.. Funded by $50 tax on each real property parcel.. Exempts certain elderly and disabled homeowners.. Funds must be used foi class size reduition, textbooks, school safety, Academii Success facility
grants, and data system to evaluate educational program effectiveneis.. Provides for reimbursement to General Fund to offset anticipated decrease in income tax revenues due
to increased deductions attributable to new parcel tax.. Requires school district audits, penalties for fund misuse.. Revenue excluded from minimum education funding (Proposition 98) calculations.,
Summary of Legislative Analystls Estimate of Net State and Local Government Fiscal lmpact:
. State parcel tax revenue of roughly $450 million annually, allocated to school districts for specified
education programs.
ANALYSIS BY THE LEGISLAFIVE ANATYST
BACKGROUND
State and local governments in California impose
severpl types oftaxes and use the resulting revenue
to support a variety of government activities.
The most significant state taxes are on personal
income, the sale'of most |pes of goods (such as
cars, appliarces, and furnifure), and corporate
profits. At the local level, the most significant tax is
on the assessed value of property (such as family-
owned land and houses, retail stores, and industrial
facilities). In California, the revenue generated from
these,various taxes is used to fund rnany typeS of
government programs, including education, health,
social, and environmental programs.
Local Property Taxes. Local governments in
California impose a tax based on the assessed
value of property. Under such a tax, the amount
owed increases as the value of the property
increases. Some lobal governments also impose a
type of property tax known as a parcel tax. Under
I
this type of tax, the amount owed is typically the
same for each parcel-or unit-of land. (Currently,
state government,does not impose'either type of
property-related tax.)
IJse of Local Parcel Thx Revenwe. Local parcel
tax revenue may be used for virtually any designated
pu{pose. In recent years, for example, parcel taxes
have been approved by voters in several school
districts and used to firrd class size reduction (CSR),
school libraries, education technology, and other
education programs. In those school districts that have
a parcel tax, this revenue can be a significant source
of funding for kindergarten through.grade 12 (K-12)
education programs. Statewide, however, the parcel
tax is a minor source of funding for school districts.
PROPOSAL
Proposition 88 creates a statewide parcel tax
and uses *re resulting revenue to .fund specific K-12
education programs. It would take effect Jaly 1,2007.
76 I Title and Summary/Analysis * * *
,:,
EDUCATION FUNDING. REAI PROPERTY PARCET TAX.
I N ITIATIVE CO N STITUT IONAT AME N DME NT AN D STAIUTE.
PROP
8B
* * * ANALYSIS BY THE LEGISLAIIVE ANALYST tcoNTINuEoI
Creates a Statewide $50 Parcel Tax
The measure adds a new section to the State
Constitutiqn that establishes an annual $50 tax
on most parcels of land in California. (This dollar
amount would not change over time.) For purposes
of the measure, a "parcel" is defined as any unit
of real property in the state that currently receives
a ssparate local property tax bill. This definition
would result in the vast majority of individuals and
businesses that currently pay property taxes being
subject to the new parcel tax. The measure exempts
from the new tax any parcel owner who: (1) resides
on the parcel, (2) is eligible for the state's existing
homeowner'S property tax exemption, and (3) is
either 65 years of age or older or a severely an{
permanently disabled person.
The measure also includes a provision that
ensures funding for other government pro$rams is
not affected. Specifically, the measure authorizes
a transfer of parcel tax revenue to the state General
Fund to offset any loss in state income tax revenue.
A loss would occur because of additional property-
related deductions resulting from the state parcel tax.
Funds Specific K-|2 Education Programs
With Tax Proceeds
Most'of the revenue generated by the statewide
parcel tax would be transferred to a new state
special fund. Of the monies initially deposited in
this fund the measure'allocates $470 million for
various K-lzeducation programs and initiatives, as
shown in Figure 1. The annual allocation of funding
would be adjusted on a proportion'al bisis-lp or
down-to reflect actual revenues received. These
monies would have to supplement existing monies
provided for these programs.
The measure allocates monies to school districts
(and other local education agencies) in various
ways. The bulk of funding (amounts for K-12 CSR,
instructional materials, and school safety) would be
allocated to school districts, public charter schools,
and county offices of education, using a new per
student formula to be created by the Legislature.
The formula likely would provide higher per
student funding rates for higher-cost students.
(Specifically, the formula is to account for cost
differences resulting from students' disabilities,
English language skills, or socioeconomic status.)
Facility grants would be allocated to school districts
and public charter schools using a flat funding
rate (capped at $500) for each student enrolled
in certain schools performing above average. For
the data system, the measure does not specify how
or to whom funding would be allocated. (Future
legislation likely would be needed clarifying such
issues.) School districts receiving any Proposition
88 funds would be required to conduct an annual
independent audit showing how they spent these
monies and post the audit reports online.
aAmounts adjusted annually, on a proportional basis, to reflect actual
revenues available.
bSchool districts, county offices of education, and public charter
schools would be eligible to receive funding. Funding to be distributed
using a weighted per student formula.
c School districts and public charter schools meeting certain criteria
would be eligible to receive funding. Funding to be based on an equal
per student amount that is capped at $500.
d The measure does not specify how or to whom funds would be
d istri buted.
K-l2 class size reduction
I nstructional materials
School safety
Facility.grants
Data system
$1750
100b
100b
85"
10d
Program Annual Target Amount
(ln Millions)a
FIGURE I
Tota I $470
Proposition 88: Allocation of Parcel Tax Revenues
For text ofPrsposition 88 see page 169.
***Analysis 177
PROP EDUCATION FUNDING. REAL PROPERTY PARCEL TAX.
INTTI-AITVE CONSTITUTIONAL AMENDMENT AND STATUTEB8
D
ANATYSIS BY THE TEGISTAIIVE ANALYST tcoNrrNurpr
K-12 C,SR. Currently, the state provides $1.8
billion for the CSR program foi kindergarten
through grade 3 (K-3). This program funds
school districts for reducing the size of their K-3
classrooms to no more than 20 students. The
additional $175 million provided by this measure
could be used to furthbr reduce class size in grades
K-3 or for any other CSR initiative. For example,
the funds would be sufficient to reduce the average
class size of fourth grade by about four students
(reducing it from a statewide average of about 29
students tb 25 students),
Instructional Materials. Currently, the state
provides over $400 million annually for instructional
material purchases. This equates to about $66 per
K-12 student. This is sufficient to purchase on'e new
core textbook for most students in most grades each
school year. The additional $100 million provided
by this measure could.be used for purchasing any
textbooks or other instruitional materials that were
approved by itre State Board of Education. Funds
likely would be sufficient to provide about 25
percent of K-12 students with one additional core
textbook each year. l
S c h o o l' S afety.Currently, the state provi des $ 5 4 8
million (or about $90 per student) for after school
programs, $97 million (or about $40 per grade 8-
12 student) for general school,safeW programs, and
$ l7 million (or about $3 per student) for competitive
school safety grants, The additional $100 million
(or about $16 per student) provided by this measure
could be used for schqol community policing and
violence prevention, gang-risk intervention, a1d
afterschool and intersession programs.
Facitily-Related Grants. Currently, the state
provides funds for .school facilities primarily
rising general obligation bonds. In addition, it has
provided $9 million annually for the last several
years to help public charter schools in low-income
areas cover some of their facility lease costs. The
$85 million provided by this measure would be
for school districts and charter schools that have
not yet received any state general obligation bond
monies for school facilities. In addition, charter
schools are only eligible if they are governed by or
operated by a nonprofit public benefit corporation.
If those conditions are met, then school districts
and charter schools would receive funding for each
stuilent enrolled in a school ranking in the top 50
percent based on the state's standardized test scores.
They'could use the grants for any general purpose.
Districts.and schools receiving such grants would
be prohibited from receiving future state g'eneral
obligation bond monies unless the borid expressly
allowed them to regeive such funding.We estimate
that about 40 noncharter schools (serving less than
I percent of all noncharter'enrollment) would be
eligible for grants. For charter schools, we.estimate
about 100 schools (serving about 25 percent ofall
charter enrollment) would be eligible for grants.
Dqta System. Currently,' the state provides
virtually no state funding expressly for 'the
ongoing collection and maintenance of student-
level and teacher-level data. The additional $10
million provided by this measure would be for
dn integrated longitudinal data system. Such a .'systern would allow the state to measure student
and teacher performance over time. The measure
requifes school districts to collect and report the
data needed to creaie,and maintain the system.
FISCAL EFFECTS
We estimate the statewide parcel tax would
result in roughly $450 million in new tax revenue
each year. Given that the dollar amount of the tax
would not increase, total parcel tax revenues would
grow slowly over time as new parceli of land were
created (such as by new subdivisions ofproperty).
Roughly $30 million of the parcel tax revenue
781 Analysis***
r-\ 0t(
EDUCATION FUNDING. REAL PROPERTY PARCET TAX. PROP
INITIATIVE CONSTITUTIONATAMENDMENTAND STATUTE 88
* * * ANALYSIS BY THE IFcISLATIVE ANALYST rcoNrruuror
would be transferred annually to the state General
Fund to offset a projected decline in state i4come
tax revenues (dde to increased property-related
tax deductions). In addition, the measure 'sets
aside no more than 0.2 percent (or approximately
$1 million annually) for couhty administration of
tlie parc.el tax. The rembinder of new tax revenue
would be allocated to schools for the specifi'ed
education programs. These revenues likely would
be somewhat less than that needed to meet the
measure's designated funding levels. If so, the
program allocations would be adjusted downward
proportionally. .
I
I
I
I
I
I
j
I
{
F'or text of Proposition B8 see page 169.
***Analysis 179
PROP EDUCATION FUNDING. REAL PROPERTY PARCET ]4X.
88 rNrrnrivE coNSrrrurroNArAMENDMENrAND srArurE. * * *
ARGUMENT IN FAVOR OF PROPOSITION 88
PROPOSITION 88: A SMART INVESTMENT FOR
OUR SCHOOLS, OUR STUDENTS, AND CALIFORNIA'S
FUTURE
Consider:. Students in one+hird of California classrooms don't have
a textbook to take home-and many don't even have a
textbook to use in class.. Teachers are paying for school materials out of their own
pockets.. Too many California classrooms are still overcrowded.. Prop. 88 will help California ,graduate the skilled,
educated workforce that is critical to a healthy business
environment and our state's economic prosperity.
PROP. 88: LOCAL CONTROL OF DOLLARS FOR
CLASSROOMS
The education needs of communities and schools are not all
the same. Prop. 88 provides needed funding directly to local
schools and school districts so that they, not thb'Legislature,
decide where to,spend the.funds.
Prop. 88 willprovide dedicated funding to:. Reduce class size so students get more individualized
instruction. Provide textbboks and other learning materials, so teachers. don't have to pay for these fundamental necessities out of
their own pockets. Make schools safer for students and teachers and help
stop campus violence and gangs
PROP. 88:A PRUDENT AND FAIR INVESTMENT
Prop. 88 will put over.$500 million a year directly into
our local schools through a nominal (about l4p per dayl$50
per year) property parcel assessment. Funds from Prop. 88
will be used to invest in our teachers and students, providing
local schools with needed resources, like textbooks,
computers, and other materials. TEACHERS SHOULDN'T
HAVE TO DIP INTO THEIR OWN POCKETS TO PAY
FOR CLASSROOM MATERIALS.
To protect those on fixed incomes, PROP. 88 EXEMPTS
SENIOR'AND DISABLED HOMEOWNERS [SECTION
2l.s(b)1.
PROP. 88: STRICT ACCOUNTABILITY AND ANNUAL
AUDITS
Funds ftom Prop. 88 are prohibited from being used for
administrative-overhead and the Legislature cannot redirect the
money to other programs fSection 6.2].
To ensure that funds go to classrooms bnd student learning,
Prop. 88 requires annual independent audits [Section 6.2.(ra]*i#trt
rrl'p1sl$:T1'", elacjly where the money goes and
we can make sure it is spent wisely.
PROP. 88: THE NEXT STEP IN IMPROVING OUR
K-12 EDUCATION SYSTEM
Taxpayers have invested in our school system by approving
local and state bonds to build new classrooms and remodel out-
of-date facilities. But bonds don'tpay for teachers, textboo-ks, or
other learning materials and supplies. Prop. 88 puts funds in our
classrooms and allows local educators to use the funds where
they,are most needed.
PROP. 88: A VOTE FOR TEACHERS AND OUR KIDS
Teachers have one ofthe most importantjobs. Yet theirjobs
are made difficult because of overcrowded classrooms and
a lack of basic supplies. YES on Prop. 88 will help provide
teachers the resources they need to teach our children and give
children the attention they need and deserve.
READ PROP. 88 FOR YOURSELF. IT'S A SMALL
INVESTMENT NOW THAT CAN MAKE A BIG
DIFFERENCE FOR OUR E'UTURE.
Vote YES on 88: More Textbooks and Learning Materials,
Smaller Classes, and Safer Schools!
REED HASTINGS, Past President
Califorhia State Board of Education
JACK 0'C0NNELL, California State Superintendent of
Public trnstruition
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 88
The California Parents-Teachers Association (PTA) says
"NO on Proposition 88."
Would the PTA say "No on 88" if it helped our kids'
schools?
Proposition 88 is tricky and misleading. There'is NOT
ONE WORD in Proposition 88 about helping teachers who
buy materials.
And, 88 gives the impression all funds will go' to
classrooms. Nonsense! Proposition 88 creates layels of
costly new bureaucracies and expands old bureaucr-acies-
for a program which forever bans Proposition 88's facilities
grants to more than 95% of our kids' schools!
This whole new kind of parcel property tax would be
collected from 10 million property owners by 58 county tax
collectors-with new special exemptions.
. Then your money goes to the State Legislature, which
decides who gets your tax money. (Proposition 88-:
Section,6.2[d])
Then 1000+ school districts collect new data from 9300+
California schools.
Then Proposition 88 requires analysis from a new
"integrated lon_gitudinal teacher and student data system as
defined by the Legislature." (Section 6.2 tbl t5l)
County Treasurer Paul McDonnell says: "Proposition 88
is a costly administrative nightmare, creating new layers of
expensive bureaucracy.'
Proposition 88 creates a whole new kind of property tax,
needing only a majority vote to pass, opening the floodgatbs to
new parcel property tax propositions. A tax with no termination
date-it lasts forever, All so fewer than 5olo of our kids' schools
can ask the State Legislature for a facilifies grant?
Our kids, our schools, and our taxpayers deserve better.
Much better.
Parents, Teachers, and Taxpayers agree . . . NO on 88!
CtIFFORD C0R!GL|AN0, SR., Teacher ofthe Yeaq 2003
ART PEDR0ZA, Member
California and American Federations of Teachers, AFL-CIO
[ORlE McGANN, Parent-Teachers Association Local President
80 I Arguments * *. *Arguments printed ory this page are the opinioTts ofthe authors and have not been checked for accuracy by any fficial agency.
(-'^-' (
EDUCATION FUNDING, REAL PROPERTY PARCEL TAX.
* * * INITTAIIVE CONSTITUTIONATAMENDMENT AND STAIUTE.
PROP
8B
ARGUMENT AGAINST PROPOSITION 88
All Californians want better schoolS, but the promoters of
Proposition 88 have taken the wrong approach. Concemed
teachers and parents have joined with taxpayer grgyps Tg
small business organizations to oppose Proposition 88.
Here's whyi. Proposition 88 does nothing to assure that funds raised in
your community are spent on your schools' Proposition
88 lets the State Legislature give your tax money to any
school district in the state.. Proposition 88 creates a whole new kind of statewide
property tax. Currently, all property taxes are collected
iocattybnd are used for local services, such as improving
your lbcal schools, reducing traffic congestion, improving
health care; and increasing firefighting, paramedic, and law
enforcdment capabilities. The Prop. 88 property parcel tax
goes to the Statg first.. Froposition 88 would.impose the first statewide property
tax since.l9l0 and would encourage other special interests
to pass more and bigger property parcel taxes for their self
interest causes.. Opening the door to the new property parcel tax could lead
to huge new property taxes, contrary to the clear intent
of Proposition t3 to limit property taxes. We could see
, owneri of small homes or mom-and-pop stores'taxed out
, of their homes and shops.. This new tax is never ending; we will pay it forever,
whether it does anything to help schools or not!. lroposition 88 gives Sacramento politicians increased
power to decide where and how to spend your moley.. Proposition 88 uses a loophole to get around the two-
thirds vote requirement in Proposition 13 to increase
taxes. Propositibn 13 requires a two-thirds voter approval
to impose a local property parcel tai' Proposition 88
would impose a new statewide property parcel tax with
only a simple majority vote. As a result, it is much easier
to impoSe new statewide parcel taxes than a local parcel
tax. This is another good reason tg stop statewide property
parcel taxes now before we are flooded, with property
parcel tax propositions.
People concerned about our kids and schools say:
"As a public school teacher, nothing is more imfortant to
me than fhe quality of our schools. Proposition 88 is poorly
drafted, it will result in tax money raised in our community
being spent by the State T egislature anywhere in the state"'
-Lillian T. Perry, Middle School Teqcher
Teacher ofthe Year 2002
o'We are the parents of two children in public schools
and are active in our PTA. We are very concerned about the
impact of Proposition 88 on our local schools and are voting
NO." -Paul and Susanna Fong
El Dorado Hills
"Most of the school teachers I know are voting No on
Proposition 88. It's bad for our schools qnd bad for our
kida." -Kate McGowan-Otto, 4th Grade Teacher
I(inner, Honorary Service Award, 2005
Proposition 88 doesn't solve problems; it creates new
ones. Thatls why Parents and Teachers agree rqith Taxpayers
and Small Business Owners. Vote NO on Proposition 88.
For more information visit:'www.noprop8 8.com.
DR. TOM B0GETICH, Executive Director
Califomia State Board of Education (Ret.)
JON COUPAL, President
Howard Jarvis Taxpayers Association
JOELT0X, President
Small Business Action Committee
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 88
, Please read Proposition 88 for yourself' It's'a modest
investment to help ensure students have updated textbooks,
smaller classes, and safer campuses.
Two ultra conservative special interest groups are
opposing this measure, just like they've opposed other efforts
tolmprove public education in our state. They have never
proposed a solution to fix our schools. Instead, they. hide
behind a smokescreen of distortions and will say anything to
stop Prop. 88. .
But don't just take our word for it. READ 88 FOR
YOURSELF. Then please join teachers, p.arents; businesses,
and ta;rpayers around the state in voting YES on 88.
Prop. 88 will:. Ensure that teachers won't have to pay for classroom
learning matdrials out of their own pocket.. Protect stqdents from gangs and violence on our school
campuses.'. Reduce class sizes so students can get the attention they
deserve.
. Kegp the funds out ofthe hands of Sacramento politicians
to ensure that EVERY DOLLAR goes to our local schools
andthat EVERY COMMUNITY BENEFITS.. Provide taxpayers and'businesses an even stake in
improving our schools.. Require the most strict accountability requirements and
standards ever proposed to make sure the funds don't get
wasted.. Protect the most vulnerable by dxempting seniors and
disabled homeowners. Ensure that homeowners are still protected from higher
taxes due to increased property vahids.
Yeg on Prop. 88-It's a small investment ryith pig
returns-smaller classes, new textbooks; and more learning
materials.
E
SHELBI W|LS0N, California Teacher of the Year, 2006
RUSSELT "RUSTY" HAMMER, Former Chamber of
Commerce Executive
STEPHANIE PRIDM0RE, Local PTA President
Airguments printed on this page are the opinions of the authtors and have not been checked for acciracy by any off.cial ageniy. * * * Arguments I 8 I
PROPOSITION POLITICAT CAMPAIGNS. PUBLIC FINAN CING.
CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND
EXPENDITURE LIM ITS. I N ITIATME STATUTE.B9
OFFTCIAL TITTE AND SUMMARY * * *Prepared by the Attorney General
POLITICAL CAMPAIGNS. PUBLIC FINANCING.
CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND
EXPENDITURE tIMITS. INITIATIVE STATUTE.
' Provides that candidates for state elective office meeting certain eligibility requirements, including
collection of a specified number of $5.00 contributions from voters, may voluntarily receive publii
campaign funding from Fair Political Practices Commission, in amounts varying by elective bffice and
election type.
' Increases inconae tax rate on corporations and financial institutions by 0.2 percent to fund program.
' Imposes new limits on campaign contributions to state-office candidates'and campaign committdes,
and new rqstrictions on contributions by lobbyists, state contractors.. Limits certain contributions and.*p"nditur.r by cotporations.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
' Increased revenues (primarily from increased taxes on corporations and financial institutions) totaling
more than $200 million annually. The funds would be spent on the public financing of political
campaigns for state elected officials.
ANALYS T S BY THE TEGIS TATIVE ANALYST
OVERVIEW OF THE MEASURE candidate is determined by state law. The limits were
last changed ryhen v,oters approved Proposition 34
at the November 2000 general election. Current
limits on the amount'of money that can be given
depend on the office being sought and who is
giving the donation. For instanee, an individual can
give a candidate for the state Assembly, a donation
of up to $3,300. On the other hand" a political party
can give that same candidate as much money as
it.chooses. A candidate can accept donations any
timsbefore an election and can spend without limit
any money that is collected.
Role of Committees und Independent
Expenditures. Rather than make donatons directly
to candidates, some individuals and groups choose
to make political donations to "committees." These
committees take donations and then decide which
candidates to give money. For instance, one type
of committee-a small contributor committee-
accepts donations of up to $200 from more than
BACKGROUND
This proposition makes major changes to the
way that political campaigns'for state candidates
and ballot measures are funded. Candidates could
choose to receive public funding for the costs of
their campaigns. For those candidates choosing
not to receive public funding, existing limits on
the amount of political donations ("contributions")
would be lowered. Figure I shows the main
provisions of the measure, which are discussed in
more detail below.
Current Limits on Politicul Contributions.
Candidates for state offices collect private donations
from individuals, corporations, political parties,
and other organizations (such as labor unions and
nonprofit organizations) to pay for the costs of
their political campaigns. The maximum amount
of money that each person or group can give to a
82 I Title and Summary/Analysis * * *
i
PoIITICAL CAMPAIGNS. PUBLIC FINANCING, PROP
CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND
EXPENDITURE LIMITS. INITTAIIVE STAIUTE.
89
* * * ANALYSIS BY THE IEGISIAIIVE ANALYST tcoNrtNutnr
100 individuals and then distributes the funds
to candidates. Other individuals, groups, and
committees choose to spend money on political
campaigns without giving money directly to
candidates. Instead they make "independent
expenditures" without coordinating with the
candidate. These independent expenditures,
such as television commercials or newspaper
advertisements, may encourage voters to support
or oppose a candidate. There are no limits on the
amount of money that can be donated for or spent
on independent expenditures.
Ballot Meusures. There are no limits on the
amount of money that can be collected or spent for
and against state ballot measures (propositions).
Stute Government's Responsibilities. The
state's campaign finance laws are administered by
the Secretary of State (SOS) and the Fair Political
Practices Commission (FPPC). Under state law,
individuals and groups must tell SOS how much
money has been given, received and spenl on
political campaigns. This information is available
to the public-generally on the Internet. The FPPC
is in charge oi enforcing the laws to make sure
candidates and donors obey the rules. The FPPC can
assess fines on candidates violating election laws.
PROPOSAL
This measure makes significant changes to
state laws regarding the financing of campaigns
for elected state offices and state ballot measures.
The meaiure's provisions regarding candidates for
office generally,affect only state elected officials
(see Figure 2).
/ Public Funding for Political Candidates
. A candidate for state office meeting certain
requirements could receive state funds to pay for.
the costs of a political camPaign.
r The amount of state funds that a candidate would
receive would go up if an opponent spent more in
private funds.
y' Lowu Gontribution Amounts for Privately Funded
Candidates
. For candidates choosing not to receive public
funding, the amount of money that could be
collected from each individual, corporation, or
other group would be lower than is currently the
case.
/ Contlibution Restrictions fot State Ballot Measures
. Places new limits on contributions to candidates'
efforts to support or oppose ballot measures.
. Places new limits on contributions from
corporations to support,or oppose ballot
measures.
r' Highu Corporate Taxes. lncreases tax rate on corporations and financial
institutions. For corporations, tax rate would
increase from B.84 percent to 9.04 percent. For
financial institutions, tax rate would increase from
10.84 percent to 11.04 percent.
. Raises over $200 million each year to implement
the measure
TIGURE I
Proposition 89: Main Provlsions
Statewide 0fficials
Governor
Lieutenant Governor
Attorney General
Secretary of State
Treasurer
t
Controller
I nsurance Commissioner
Superintendent of Public lnstruction
Legislature
Senators (40)
Assembly Members (80)
Board of Equalization Membets (4)
FIGURE 2 .
State Elected Officials Covered by Proposition 89
For text of Proposition 89 see page 171..
***Analysisl33
PROP POLITICAL CAMPATGNS. PUBTIC FINANCING.
89 CoRPoRAIE TAX INCREASE. CAMPAIGN CoNTRIBUTIoN AND
EXPENDITURE LIMITS. INITIATIVE STAIUTE.
ANATYSIS BY THE LEGISTAIIVE ANALYST rcoNrrNutor
Puslrc Furuoiruc ron Pourrcnl GnruoroRrrs
The measure establishes a system for candidates
to receive public fu1rds to pay for the costs of
campaigning for state offices.
Requirements to Receive Money
In order to receive public funding for a
campaign, a candidate would have to meet certain
requirements:
. $5 Donations andsignatures.Acandidatewould
be required to collect a number of $5 donations
("qualifying contributions") and signatures from
residents prior to a primary election. As shown
in Figure 3, the required number of 'donations
would range from 750 to 25,000 depending on
the office sought. The measure requires that
these donations be paid to the state.
. Private Contributions, To receive public
funding, a candidate could not recpive priv.ate
campaign funding, with two main exceptions.
First, beginning up to 18 months prior to a
primary election, the measure allows candidates
to collect and spend start-up contributions, or
"seed money." (These funds could be used, for
instance, to pay iosts for collecting the qualifying
contributions and signatures.) The measure
restricts these types of donations to $100 each.
Total dondtions would be limited to between
$10,000 and $250,000 depending on the office
(see Figure 3). These funds could only be spent
until 90 days prior to a primary election. Second,
candidates would continue to be able to rsceive
donations from political parties. Donations from
political parties would be subject to the same
limits as for candidates choosing not to receive
public funds (described below).
. Other Requirements. By accepting public
funding, a candidate would be subject to
some additional requirements. For example,
candidates would be required to participate in
public debates before each election. In addition,
candidates could not use their personal funds to
pay for campaign-costs.
Public Funding Provided
Those candidates meeting the requirements
described above would become eligible to receive
public funds. As shown in Figure 3, the amount
of funding would vary based on (1) the office
sought and (2) whether it was a primaiy or general
election. For instance!, for a primary election, a
candidate running for the Assembly could receive
$250,000 for the primary election and an additional
$400,000 for the general election (if successful in
the primary election). A candidate for Governor
could receive $10 million in the primary election
and an additional $15 million-in the general
election. The FPPC would administer the funds and
make disbursements using a debit card system.
Additionat Pabtic Funds. In cases where a
candidate's opponent chose not to. participate in
the public financing system, the measure allows a
D Off ice
Public Financing Availablelnitial Steps
$400,000
800,000
400,000
2,000,000
15,000,000
$250,000
500,000
250,000
2,000,000
10,000,000
$10,000
20,000
30,000
75,000
250,000
750
1,500
2,000
7,500
25,000
Assembly
Senate
Board of Equalization
Statewide officials
G'overnor
GENERAL
ELECTI O N
PRIMARY
ELECTION
MAXIMUM START.UP
CONTRIBUTIONS
NUMBER OF
$5 C0r{TRtBUTT0NS
FIGURE 3
Proposition 89: Public Financing Provisions for Major party Candidates
84 lAnalysis***
I.l
i
i
.- /' '
/
POLITICAI CAMPATGN S. PUBLIC FI NANCING.
CORPORATE TAX INCREASE. CAMPATGN CONTRIBUTION AND
EXPENDITURE IIMITS. INITTATIVE STATUTE.
PROP
89
* * * ANATYSIS BY THE LEGISTATIVE ANALYST (CONTINUED)
participating candidate to receive additional funds
in some cases. Specifically, if an opponent spent
more in private funds than the 4mount of public
funds available, additional public funds would be
provided to the candidate on a dollar-for-dollar
basis. Similarly, a participating candidate would
receive additional public funds if independent
expenditures were made in support of an opponent.
The maximum amount of additional public funds
thbt a candidate could receive is capped irnder the
measure (generally five times the original amount
provided to a candidate and four times the amount
for a candidate for Governor). For instance, the
maximum amount of additional public funds that
a candidate for the Assembly could receive for a
primary election would be $1.25 million'
Funds for Expenses While in Office. Under
current law, state elected officials generally may
use leftover campaign funds to pay for some
expenses while in office. Under the measure, those
candidates who accept public financing and win
their election would be eligible to receive'annual
payments to cover similar expenses. MemberS of
the Legislature would receive $50,000 each year
while in office and other state officials would
receive $100,000 each year.
Minor Party and lndependent Gandidates
The amounts shown in Figure 3 are for
candidates representing major parties (generally,
parties whose nominee for Governor in the last
election received at least 10 percent of the vote).
Under the measure, candidates from minor parties
and independent candidates are eligible to receive
smaller amounts of public funds. Depending on the
situation, a minor party or independent candidate
could receive as much as one-half of the amount
that amajor party candidate receives.
lowrn CoNrnlsunoN AMouNTs FoR PRIvATEIY
Fuuoro Cntolonrrs
'Lower Campaign Contributions. For those
candidates who choose not to participate in the
public financing .
of campaigns, the measure
impo3es new limits for campaign donations to
candidates. The measure's limits generally are
much more restrictive than is now the case' For
instance, Qurrently. individuals, corporations,
and other groups can donate $3,300 per election
to a candidate for the Legislature. This measure
would restrict contributions to $500 for legislative
candidates. Currently, political parties can give
unlimited amounts to candidates. Under the
measure, a political party's donations would be
limited. For example, a political patty could give
a privately funded candidate for Assembly up. to
$io,OOO for a general election. These new limits
are summarized in Figure 4.
Assembty $3,300 $500 $6,700 $2,500 No limit $20'000
Senate 3,300 500 6,700 2,500 No limit 40,000
Board of Equalization 5,600 500 11,100 2,500 No lirlit 20,000
Stateniide officials 5,600 1,000 11,100 2,500 No limit 200,000
Governor 22,300 1,000 22,300 2,500 No limit 750,000
aAmounts shown are for general elections. primary election limits are between one-half and twothirds of the amounts shown. Politicil party limits would apply
to both privately and publicly funded candidaies.
Political Party
CURRENT PROPOSITION 89 CURRENT PROPOSITION 89 CURRENT PROPOSITIONS9A
lndividual, Group, or
Gorporation
Small Contributor
Gommittee
Campaign Contribution Limits for Privately Funded Candidates (For Each Election)
For text ofProposition 89 see page 171
***Analysis 185
PROP POLITICAL CAMPAIGNS. PUBLIC FINANCING.
89 CoRPoRATE TAX INCREASE. CAMPAIGN CoNTRIBUTIoN AND
EXPENDITURE IIMITS. INITI-AIIVE STAIUTE.
ANALYSIS BY THE LEGISTAIIVE ANALYST rcoxrrNuror
Other Restrictions on Cumpaign Contributions.
The measure also adds other types of restrictions on
campaign contributions related to privately funded
candidates, which are summarized in Figure 5.
. Independent Expenditure Conffibution Limit.
The measure' restricts donations to $ 1,000
each year to a committee for independent
expenditures. As under current law, individuals
could make unlimited independent expenditures
if they spent the money on their own, without the
use of a committee.
. Overull Donation Limit. The measure also adds
new limits on the overall amount of political
contributions that a person or group can make
to candidates and committees in a year. The total
amount that could be donatbd to all types of
committees to support or oppose state candidates
would be limited to 915,000. Of this total,
however, any contributions over $7,500 would
be required to go for independent expenditures.
. Lower Political Party Contribution Limit.
The measure lowers an existing limit on annual
conhibutions to political parties from $27,900 to
$7,500.
. Lobbyist Restrictions. Under existing
law, lobbyists are prohibited from making
contributions to candidates. The measure also
forbids lobbyi5ts from making donations to
political parties and committees.
. State Contructor Restrictions. Under existing
law, those individuals and entities receiving state
contracts are not subjectto any special restrictions
on political contributions. The measure forbids,
in some instances, those receiving state contracts
from making donations to candidates, political
parties, and committees.
CoNrRrsunoN REsrRtcloNs FoR Srnrs Bnrror
Mensunrs
Unlike donations for candidates, the amount of
money donated by entities to support or oppose
state ballot measures currently is not subject to
contribution limits. This measure places two new
restrictions on donations for ballot measures:
. First, when a candidate for state office is
significantly involved with a committee that
supports or opposes a ballotmeasure, individuals,
corporations, and other groups would be limited
to a $10,000 contribution to that committee.
. Second, corporations would be prohibited from
making contributions or spenditrg more than
$ 10,000 to support or oppose a ballot measure.
(Nonprofit corporations meeting certain
requirements would not be subject to this
restriction.) Corporations, however, could
establish special committees to collect voluntary
donations from employees for additional
expenditures.
D Candidate-Related Contributions
. Total annual contribution to an independent. expenditure committee to support or
oppose a candidate.
' Total ahnual contributions to political parties for candidate-related expenditures.
o Total annual contributions to all types of committees for candidate-related
expenditures.
Ballot Measure Contributions
r Contributions for or against a ballot measure where a candidate is significantly involved
o Contributions for or against a ballot measure by a corporation.
aContributing more than $7,500 is allowed only for independent expenditures,
Current Proposition 89
$1,000No limit
$10,000
10,000
No limit
No limit
7,500
15,000"
$27,900
No limit
FIGURE 5
Other Ghanges Under Proposition 89
86 lAnalysis***
("
polrrrcAl ceMprucNs. PUBLIC FINANCING. PROP
CoRpoRArt rn* tNcREASE CAMPAIGN coNTRIBUTIoN AND 89
EXPENDITURE LIMITS; IN ITTATTVE STAIUTE
t
* * * ANALYSIS BY THE LEGISLATIVE ANALYST ICON:TINUEOI
Frscnl PRovlslotts
Higher Corporate Taxes. In order to pay for
the measure.'s provisions (primarily for the public
financing ofcampaigns), the measure increases taxes
on corporations and financial institutions beginning
in2007.The measure increases the income tax rates
paid by corporations from 8.84 percent to 9.04
percent. For financial institutions, the rate would rise
from 10,84 percent to 11.04 percent.
Other Revenues.lnaddition, the measure would
result in other, small sources of revenues, primarily
the collection of candidates' $5 contributions and
fines on candidates violating election laws. (Under
current law; fines for violating.election laws are
deposited into the state's General Fund.)
Tbtal Amount of Funds. The total amount of
funds that could be held by the state at any time.for
the measure's purposes would be limited to about
$900 million. (fn. fo.-ula determining this amount
would be adjusted for inflation every two years,)
Any amount over this limit would be transferred to
the state's General Fund. If there were not enough
money to fully.fund the measure's provisions, the
measure authorizes FPPC to proportionately reduce
the amount of funds available to each candidate.
Orxen Pnovtstotts
Administrution CoSts.The measure provides that
a minimum of $3 million (adjusted for inflation
every two years) of the new funds would go to
FPPC to pay forthe administration of the measure.
The SOSwould also be required to use some of the
funds for a voter education campaign'
Election Procedures. The measure makes a
number of other changes to election procedures.
'For inStance, the measure prohibits any candidate
(whether ieceiving public financing or not) from
collecting campaign donations earlier than 18
months prior to a primary election. Also, the measure
changes what counts as independent and political
expenditures prior to an election. These changes
would result in more spendin! being subject to
donation limits and disclosure rtquirements.
FISCAL EFFECTS
New Revenues. We estimate that the measure
would raise over $200 million annually. Virtually
all of this amount would come from the increased
taxes on corporations and financial institutions.
Small amounts would come from the collection
of candidates' $S contributions and fines on
candidates violating election laws. Since fines for
violating election larys are currently deposited in
the state's General Fund, the measure would slightly
reduce General Fund revenues (by about $1 million
annually).
New Spending. The new funds would pay for
costs associateil with the measure. We estimate
costs to administer the provisions of the measure
and pay for voter education would be in the range
of several million dollars each year. (There would
be additional one{ime costs, largely for computer
systems and voter education, to set up the public
financing of campaigns for the first time.) The
remaining funds would be available for candidates
who choose to receive public funds for their political
campaigns. The amount of spending on the public
financing of election campaigns would depend
on a number of factors and vary from election to
election. Among the factors affecting spending
would be:
. The number of candidates accepting public funds.
. The amount of money spent by candidates not
receiving public financing (which would determine
the level of any additional public funds).
The measure provides that total spending could
hot exceed the amount of'money available from
the increased revenues. Assuming that the number
of candidates in each election does not increaSe
significant$ from current levels, there probably would
be sufficient funds available to provide all candidates
with the amounts allowed under the measure.
For text ofProposition 89 see page 171
***Analysis 187
PROP
89
POLITICAT CAMPAIGNS. PUBTIC FINANCING.
CORPORAIE TAX INCREASE. CAMPAIGN CONTRI BUTION AND
EXPENDITURE IIMITS. INITIATIVE STAIUTE. * * *
ARGUMENT IN FAVOR OF PROPOSITI()N 89
VOTE YES TO TAKE A STAND AGAINST THE
POWER OF SPECIAL INTERESTS AND LOBBYISTS IN
CALIFORNIA GOVERNMENT.
VOTE. "YES" ON PROPOSITION 89, THE CLEAN
MONEY AND FAIR ELECTIONS ACT
We.have a crisis of comrption in our government marked
by__scandal after scandal and criminal .investigations of
politicians from both parties. It is time for Califomians to,
clean up this comrption and make politicians accountable to
voters instead of big money campaign contributors.
THE PROBLEM
- Right now, special interests like big oil companies, the
drug giants, the insurance industry, andHMOs can get their
way in _Sacram€nto -by donating millions to elect po-liticians
who will owe them favors. Lobbyists and special interests use
campaign contributions to pass their pork banel projects and
creale lqx loopholes-costing consumers and taipa:yers like
you billions ofdollars each year.
THE SOLUTION: PROPOSITION 89
If you're dissatisfied with the way campaigns are funded
in California and the effect of campaign contributions on
state govemment, Vote Yes on Prop. 89.
YOUR "YES'' VOTE WILL:
1. Help level the playing field and make our elections more
fair and compe{itive--so that candidates with the best
ideas have a chance to win, even if they are not rich or well
- connected to wealthy special interest groups and lobbyists.
2. Require candidates to adhere to strici spehding limit-s and
reject special. interest contributions in order toqualify for
public financing.
3. Ban contributions to candidates by lobbyists and state
contractors.
4. Set limits on outside, so-called "independent" campaign
committees created by big contributors to influence eleciions.
5. L-imit_ to $10,000 the amount corporations can spend
directly on ballot measure campaigni.
6. Restrict 'contributions by corporations, unions, bnd
individuals to $500 for candidatts for state Legislature,
$1,000 to candidates for statewide office.
7. Establish tough penalties, inclirding jail time and removing
candidates from office who break the law.
NOT FUNDED BY INDIVIDUAL TAXPAYERS OR THE
STATE BUDGET- Proposition 89 is specifically frmded by a modest increase
in the corporate income tax rate-raisin! it from 8.84% to
9.04%. The resulting corporate income tai rate would still be
less than it was from 1980 until 1996. Corporations should
pay their fair share in taxes.
WHEN YOU HEAR THE ARGUMENTS AGAINST
PROPOSITION 89, REMEMBER:r Opposition to Proposition 89 is being led and funded by
the big oil companies, drug companies, the insuranc-e
industry, HMOs, and other entrenched interests.. Proposition 89 was drafted and reviewed by experts in
constitutional and election law and put on the ballot and
bqcked by Democrats, Republicans, and independent voters.. The opponentg of Proposition 89 want to k-eep the system
exactly thg way it is, because they know it works for
them, NOT !o-ryou. They are making false claims against
Proposition 89 because they want to keep political power
for themselves rather than having fair elect-ions thafmake
politicians accquntable to the voiers.
I/OTE YES ON PROPOSITTON 89! RETURN ELECTIONS
TO THE I/OTERS AND REDUCE THE POWER OF THE
SPECIAL INTERESTS.
DEB0RAH BURGER, RN, President
California Nurses Association
HARVEY ROSENFIE[0, Founder
Foundation for Taxpayer and Consumer Rights
SUSAN IERNER, Executive Director
California Clean Money Campaigri
REBUTTAL TO ARGUMENT IN FAVOR OF 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 me-asure that wori't work.
POLITICIANS'NEGATIVE POLITICAL CAMPAIGNS PROP. Sg $ WiiIR
. . The supBortels of Proposition 89 won't tell you that what And the biggest deception of all-the buthors ofthis measure re.glly does, plain and siqp.le, is iaise taxes by Proposition 89 aiJspecial interests too! ihey wrote prop. 89hundreds of millionp of dollars so polilicians can run their s9 l't eV can still contiribute BIG MONEV to 6allot initiatlves,
-
campaignsattaxpayers'expense. while small businesses,.nonprofits, una oinirc ur. ulrt uify
Fl Ev.erything we don't like about political campaigns- SHUT OUT. Prop. 89 is a power grab by a single special
5y l'ffl5fl[']ii]t'llffi_;;*:ffi*:x
-"dhqTk l:ffi ^";'":;:;;T;T;';:" T:;:,"T#';. AFFECTS SMALL.BU.'A/ESSE,S TOO REF,RM.
^
TheyclaimthatProposition 89 is aboutreducingthe impact VOTE NO ON PROP. 89.
of big corpordtions in elections, but it also SEVSITELV
LIMITS the ability of many small businesses from backing . IARRY MoCARTHY, President
candidates or impacting measures. - Californi4 Taxpayers, Association
That's why the Califomia Small Business Association BETTy J0 TOCCgq, Chairopposes Prop' 89' California Small Business Roundtable: PROP.gqISCOM?LICATEDANDLTNCONSTITUTIONAL -o"choi,
--- r ,
. ti;;.:* n'9p. 8e ryas crafted by erection experts, but they &ilr:* ##iIJflffii!:l?1f., co*i,,io,,don't tell you that major portions of a similar measure werb
88 I Arguments * * * Argumints printed on this page are the opinions ofthe authors and have not been checkedfor accuracy by any fficial agency.
POLITICAL CAMPAIGNS. PU bLIC FINANCING.
CORPORATE TAX INCREASE. CAMPAIGN CONTRIBUTION AND
* * * EXPENDITURE LIMITS. INITIAIIVE STATUTE.
PROI'
89
ARGUMENT AGAINST PROPOSITION 89
Don't be fooled by Propolition 89. Prop. 89 is NOT about
cleaning up politics. But, it is 56 pages of new, complicated,
confusing election rules that won't work.
Proposition 89 was put on the ballot by a single special
interesl group, the California Nurses Association, th{ wanlq
an UNF-AIR advantage in California elections while small
businesses and individuals are effectively SHUT OUT of the
political process. Even other labor organizations like those
iepresenting teachers, firefighters, and law enforcement do'
oot snppori'Proposition 89] because it RESTRICTS their
participation in the political processSs well.
PROPOSITION 89: NOT JUST ABOUT BIG
CORPORATIONS.
The authors of Prop. 89 say they are trying to stop
big corporations frorn. having too much influer,rce. lut,
Proposition 89 restricts many small businesses from backing
candidates or supporting and opposing initiatives' Even a
mom-ind-pop business, if it is incorporated like many are,
is restricted under Prop. 89.
Proposition 89 alio restricts many nonprofit groups that
want to eduoate voters about the issues they care about. For
example, a group of crime victim advocates will be limited
in warning voteis about a candidate who is soft on crime.
Teachers *ltt Ue limited in helping elect candidates who will
support improving our schools.
PROPOSITION 89: INCREASES TAXES TO PAY FOR
NEGATIVE CAMPAIGNS,
California has many urgent priorities to get bur state back
on the right track.
Proposition 89 contains a $200 MILLION TAX
INCREASE and gives that money to politicians to
spend on their negative TV ads and iunk mail.
Proposition 89 places virtually no limits on how the
politicians spend their taxpayer-financed campaign funds. It' qreans thatwe, the taxpayers, will be payingfor their negative
ad.s!
, PROPOSITION 89: WON'T STOP WEALTHY CANDIDATES.
Proposition 89 puts no limits on wealthy pandidates who
try to buy Califomia elections.
Under Proposition 89, a politician using taxpayer fi1nds
and running-against a wealthy candidate can get up Io ten
times the iormal tqxpayer money to run his campaign. A
pandidate for Governor could qualiff for up to $200 million
of taxpayer money to run his or her campaign.
PROPOSITION 89 : IT'S UNCONSTITUTIONAL !
James Hall, past Chairman of the California Fair Political
Practices Commission, says:
"Proposition 89 is unconstitutional, unfair, and won't
Work."
Supporters of 89 say it is modeled after measures in
other siates. But, the United States Supreme Court ieceqtly
found the contribution and expenditure limits in a similar
measure from Vermont unconstitutional because they limit
free speech and violate the First ,{mendment.
PROPOSITION 89: WE ALfuEADY HAYE CAMPAIGN
LIMITS,
Californians have already passed a campaign finance
reform law, Proposition 34, which strictly limits conhibutions
to candidates. This law has survived several court challenges
and is working. We don't need Prop. 89.
SAY NO to PROPOSITION 89!
Proposition 89 is unfair to small businesses, nonprofits,
and grbups representing working Califomians. It is a waste
of our piecious tax dollars, it's unconstitutional, and it's
just anolher confusing measure that won't work. Plbase join
smdll businesses, taxpayers, educators, organized labor, and
so many others in voting NO on Proposition 89.
ATLAN ZAREMBERG, President
California Chamber of Commerce
TONY OU|NN, Former Commissioner
, California Fair Political Practices Commi'ssion
TARRY McCARTHY, President
California Taxpayers' Association
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 89
Electioris should be decided by voters; not special interests.
Elections should be about the best ideas, not who has'the
most money. Vote YES on Proposition 89 for fair and clean
elections.
Proposition 89:. Levels the playing field and makes our elections fairer and
more compttiiive. Advocates for crime victims, education,
healthcare, seniors, and other regular Californians will no
longer be drowned out by big campaign spenders' ,. Saves taxpayers money by ending the'incentive for
legislative- giveaways dn ldbUyist-driven projects. Th'e
$3-.3 billion in corporate tax loopholes today cost each
Cplifomia household $275 every year.,. Provides the antidote to negative advertising. Candidates
who accept public financing mpst participate in real
debates and cannot hide behind negative 30-second ads.. Does not increase taxes on individuals. Small businesses
will not foot the bill. ,. Creates a Clean Money public financing system like those'in other.states that protects free speech and has been
proven to be effective and constitutional.. Opsns our'elections to a diversity of qualified candidates
from all walks oflife, like teachers, nurses, and firefighters,. not just those with access to the most money.. Sets tough penalties for those who violate the law.
The special inter'ests oppose Prop. 89 because they like
the contrbl they have over our political system today. As a
Los Angeles Times headline said, "Prop. 89: So Good Itrs
Scary-to Sacramento."
It is time to put the v6ters back in charge. VOTE YES ON
PROPOSITION 89.
JACqUELINE JAC0BBERGER, President
League of Women Voters of California
RICHARD [. HASEN' lD, Ph.D., Constitutional Election
. Law Professor
KATHAY FENG, Executive Director
Califomia Common Cause
Arguments printed.on this page are the opinions ofthe authors and have not been checkedfor accuracy by any official agency. * * * AfgumentS I 89
PROPOSITION GOVE RN MENT ACSII S ITION, REG U I,ATION O F PRIVATE
P RO P E RTY. I N ITIAT TVE CON STITUTIONAL AME N DMENT.90
OFFICIAL TITLE AND SUMMARY * * *Prepared by the Attorney General
GOVERNMENT ACSUISITION, REGULATION OF PRIVATE PROPERTY.
INITIATIVE CONSTITUTIONAL AMENDMENT.
. Bars state and local governments from condemning or damaging private property to promote other private
projects or uses.
. Limits government's authority to adopt certain land use, housing, consumer, environmental and workplace laws
and regulations, except when necessary to preserve public health or safety.
. Voids unpublished eminent domain court decisions.
. Defines'Justcompensation."
. Government must occupy condemned property or lease property for public use.
. Condemned private property must be offered for resale to prior owner or owner's heir at current fair market
value if government abandons condemnation's objective.
. Exempts certain governmental actions.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal lmpact:
. lncreased annual state and local government costs to pay prdperty owners for ( l) losses to their property
associated with certain new laws and rules, and (2) property acquisitions. The amount of such costs is
unknown, but potentially significant on a statewide basis.
ANALYSIS BY THE LEGISTATIVE ANATYST
SUMMARY
This measure amendp the California Constitution to:
. Require government to pay property owners for
substantial economic losses resulting from some new
laws and rules.
. Limit government authority to take'ownership of
private property.
This measure applies to all types of private property,
including homes. buildings, land, cars, and "intangible"
property (such as ownership of a business or patent):
The measure's requirements apply to all state and local
governmental agencies.
PAYING PROPERTY OWNERS FOR
ECONOMIC LOSSES
State and local governments pass laws and other rules
to benefit the overall public health, safety, or welfare
of the community, including its long-term economy.
(In this analysis, we use the term "laws and rules" to
cover a variety of government requirements, including
statutes, ordinances, and regulations.)
In some cases, government requirements can reduce
the valug of private property. This can be the case, for
example, with laws and rules that (1) limit development
on a homeowner's property,
.
(2) require industries
to change their operations to.reduce pollution, or (3)
restrict apartment rents.
PnoposRr.
This measure requires government to pay property
owners if it passes certain new laws or rules that result
in substantial economic losses to their property. Below,
we discuss the types of laws and rules that would be
exempt from the measure's requirements and those that
might require government compensation.
What Laws and Rules Woutd /Vaf Require
Compensation? '
All existing laws and rules would be exempt from
the measure's comperisation requirement. New laws
90 I Title and Summary/Analysis '* *'*
//'
''
-
PcVATE PROPERTY'
GOVERN MENT ACQI I S lTlo N REGUIATION oF
IN ITIATN; CO N STITUTIONAL AMEN DMENT
PROP
90
E
of the ProPertY'
For text ofProposition 90 see page 187
***AnalYsis 191
PROP
90
GOVE RNME NT ALTII S ITI ON, RE GUTA TI ON O F PRI YAIE PROPE RTY.INITIATIW CO NSTITUTI ONEi E'*UNDMENT.
ANALYSIS BY THE LEGISTATIVE ANATYST (CONTINUED)
+y+I"lfr?%t|ixTv E N T A u TH 0 R I TY
Eminent domain (also called ..condemnation.,)
is thepower 6f tocat, state, and.fed"r"i;;;;ments ro takeprivare properry for a public
"." ;.:;;;;s governmentcompensates the propelty owner. (I"n somb cases,government has given the power of .rnin.nt domainto private entities, including telei;# and energy
l-1Tlunb. .u:d nonprofi t t orpitutr. iiitii, unury*i., thesepnvate entities are included within tt " ."uning of"governmentr,')
Over the years,. government has taken pri.vateproperty to build ,o31.: schools, ;;rk., and otherpublic faciliries. In addirion ," n.r""rris of eminentdomain, governmen
nublicp,,p";;;;i'0i"""",1X'.;t":"1J,",r#**
public facilities. For exampl", ;;;;;;:irt has takenproperty to: herp develop rrrgrrJ,
"uiu.'or.iresses inan atea, correct envir
reve nue s, und u d d,.,Xoffir?,
"lXlf"Tj; Jlill:; t::
hazaldsus buildings, btight, r;; ;n#r, *tiviry)r
' Restricting the purposes for which government maytake property.
. Increasing the amount that government must payproperty owners.
. Requiring government to sell property back to itsoriginal owners under certain
"ii.uilr,un....Below, we discu
tr,emeasure,dffi JT,,f ?i:Tl"i,r"::fl"rr":Ti,lil
ydtilil, ; - 1,",,#::d "-d; ;.;;;
Take property?
Under the measure, government could take privateproperty to build public roads, ,.fro"f., pu.ts, and other
9ov31n1ent_owned public facilities. Clu.rnr.n, ut*ocould take property an1l.ur.. i,-," ,]pr."re entity roprovide a public service (such as the construction andoperation of a toll road). If u poOnJ ;;;r." exisredon a specific parcel'of land, ;"""_;;;; could takethat parcel to correct tt e puitic ;;;;"". Finally,government could tal,
to a declared rr"r" "i"Lfilliltv
as needed to responJ
What property Takings Would Be prohibited?
Before taking p.1"p.-.fy, the measure requiresgovernment to state a ..n16hc ur",, fo. rt
"property. Themeasure narrows the definition of puUii.,ur. in a way
;%i:iTltrv wourd p'"u.nig;ffi;; rrom taking
. To Transfer It to private (/se. The,."u.rr.specifies that government must maintain ownershipof the propeity and use i, Jriy a", ,t . o"rtic use itspecified when it took the pro;rt1. ,
. To Address a public Nuisunlce, Uniless the pubticNuisance Existed on Thut particotoiirop"rty.
For
,llu.pl", government
"orto not iut-"' ,,irn"parcelsrn a run_down area unless it showeA inut
"u"n unaevery parcel was blighted.
' As Part o.f a plan to Change the Type ofBasinesses in an -Area or" to"rnnr" TuxRevenaes' For example, gou"rn*"i'rrrto not takeproperty to promote devel,opment of u nJ* retail ortourist destination area.
. Give property owners incentives to voluntaril y caftyout public objectives,. Reduce the scope of government requirements so thatany properfy owners, losses *o" noi .uUstantial.. Link the new law
and safety (",;"::i:*oljfily":: " public hearth
There probably would be_many .u."r, ho*ru"r, wheregovernment would incur additionuf *t.1. a result ofthe measure. These w.ould include- ,i*",i"r, wheregovernment anticipated costs to
"o_f"nJu," propertyowners at the time it passed u tu*_i. *ll as. caseswhen governmenr did not ""0;;;; inilur"r" cortr.The torat amounr of rhese pai;;;;; uflou.rnrn.nr toproperty owners cannot be determir"A"O", could besignificant on a statewide basis.
--""'rvq uu
D PRoposRr
This measure makes
government authority to take
significant changes to
property, including:
92lAnalysis***
-,t (" - '' ,'' 'ii
GOVE RNME NT ACQI I S ITION, REGUTATIO N O F P RIVAIE P RO P E RTY.
IN ITIATIVE CON STITUTIONAT AMENDMENT.
PROP
90
* * * ANATYSIS BY THE LEGISLATIVE ANALYST IcoNTIUUEPI
In dny legal challenge regarding a property taking,
government would be required to prove to a jury that the
taking is for a public use as defined by this measure. In
addition, courts could not hold property owners liable
to pay government's attorney'fees or other legal costs if
the property owner'loses a legal challenge.
Hpw'Much Would Government Have to Pay
Property ownqrs?
Current law requires government to pay 'Just
compensation" to the owner before taking property. Just
compensation includes money to reimburse the owner
for the property's "fair market value" (what the property
and it6 improvements would sell for on an open market),
plus any reduction in the value of remaining portions of
the parcel that government did not take. State law also
requires goternment to compensate property o\lr'ners
and renters for moving costs arid some business costs
and losses.
The measure appears to increase the amount ofmoney
government must pay when it takes property. Under the
measure, for example, government would be required to
pay more than a propeity's fair market value if a greater
suni were necessary to place the property owner "in the
same position monetarily" as if the property had never
been taken. The measure also appears to make propeffy
'owners eligible for reimbursement for a wider range of
costs and expenses associated with the propsrty taking
than is currently the case.
When Would Government Sell Properties to
Former 0wners?
If government stopped using property for the purpose
it stated at the time it took the proPerty, the former owner
of the property (or an heir) would have the right to buy
back the property. The property would be assessed for
property tax purposes as if the former owner had owned
' the property continuously.
Relatively few properties are acquired using
goverpment's eminent domain po'v/er. Instead,
government buys mo.st of this property from willing
selleis. (Property ownsrs often are aware, howevqr,
that government could take the property by eminent
domain if they did not negotiate a mirtually.agreeable
sale.)
A substantial amount of the property that government
acquires is used for roads, schools, or other purposesthat
'meet the public use requirements of this measure----or is.
acquired to address specific public nuisances. In these
cases, the measure would not reduce government's
authority to take property. The measure, however, likely
woul<i increase somewhat the amount tl-rat government
must pay property owners to take their property. In
addition, the measure could result in willing sellers
increasing their asking prices. (This is because
sellers could demand the amount that they would
have received if the property were taken by eminent
domain.) The resulting increase in governmentt costs
to acquire property cannot be determindC, Out could be
significant.
The rest of the property government acquires is used
for purposes that do not meet the requirements of this
measure. In these cases, governmbnt could not use
eminent domain and could acquire property only by
negotiating with property owners cin a voluntary basis.
If propertyrowners demanded selling prices that were
more than the amount government previously would
have paid, governmentis spending to abquire property
would increase. Alternatively, if property owners did not
wishto sell theirproperty and no other suitable property
was available for.government to purchase, government's
spending to acquire property would decrease.
Overall, the net impact of the limits on government's
authority to take property is unknown. We estimate,
however, that it is likely to result in significant net costs
on a statewide basis.
Errecrs 0N SrATE AND L0cAL Govrnnrururs
Government buys many hundreds of millions of
dollars of property from private owners annually.
For text ofProposition 90 see page 187.
***Analysis,l93
PROP GOVERNMENT ACQIISITION, REGULATION OF PRIVATE PROPERTY.
90 rNrrrArrvE coNsrrrurroNArAMENDMENr. * * *
ARGUMENT IN FAVOR OF PROPOSITION 90
Propositibn 90 stops eminent domain abuse!
Local governments can take homes, businesseb, and
churches lhrough gnfair use of eminent domain. They can
also take away your property value with the stroke of a pen.
We are three average Californians, and it happened to us.
Loc-al'governments unfairly tried to take our property
away from us and turn it over to developers to build condod,
hotels, and other commercial projects.
Why? Because firese developers are politically connected,
and their projects will generate more tax. revenue for local
governments
If government can take our properly, it can take yours
too.. Itianuel Romero had eminent domain used against his
family restaurant so that a Mercedes-Benz dealership next
door could use the space for a parkihg lot.. Bob Blue had eminent domain used against his small
luggage store-in his family for almost-sixty years-so
that a luxury hotel could be built.. Pastor Roem Agustin had his church threatened
with condemnation so that a developer could build
condominiums.
It's wrong for senior citizens, small buSiness owners,.or
anyone who can't fight back to be forced to give up their
properfy so wealthy developers can build giant retail stores,
shopping malls, and upscale housing developments.
Government can also take property without compensating
property owners.
When governments pass regulations that reduce the value
of your property, it's called regulatory taking. When this
happens you should be compensated by the government for
your lost value.
Govemment should not be able to take your home-
outright or through regulations that reduce the value of
your property-without it being for a legitimate PUBLIC
use and without paying for what it takes.
That's simple fairness.
That's why California needs Proposition 90, the Protect
Our Homes Act.
Proposition 90 will:. restore homeowners' rights that were gutted last year
by the Supreme Court's outrageous Kelo decision. That
ruling allows eminent domain to be used to take homes
and businesses and turn them over to private developers,. retum eminent domain to legitimate public uses, such
as building roads, schools, firehouses, and other needs
that serve the public and not the financial interests pfthe
government and powerfu I developers.. restrict government's ability to take away people's use of
their properfy. without compensating them-
Those who benefit financially from the status quo are
spg4ding millions to mislead voters and claim thi slcy is
falling.
Opponents are engaging in scare tactics in order to divert
'attention from their REAL MoTlvE-maintaining the status
quo so they can continue to profit from taking our private
property.
For example, opponents falsely claim that the measure
will hurt the enforcement of environmental regulations. But
all existing California environmentallaws and regulations are
expressly pfotected.
The Protect Our Homes Act protects all of us-and helps
families for future generations-while stopping govemment
from taking your property simply to boost tax revenue.
Save our homes and businesses.
Please vote YES on Proposition 90.
For more information, visit www.protectourhomes2006.com.
MANUET ROMER0, Eminent Domain Abuse Victim
B0B BLUE, Eminent Domain Abuse Victim
PAST0R ROEM AGUSTIN, Eminent Domain Abuse Victim
REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 90
Of course we can all agree that Califomians deserve
protection from eminent domain abuse. And, if Prop. 90 was
a well-designed reform of eminent domain, many thoughtful
Californians would support it.
_ However, the out-of-state drafter of Frop. 90 is attempting
a briit and switch on voters. This poorly-written proposition
is loaded with unrelated and far-reaching provisions ihat will
harm, not protect, homeowners and be very expensive for all
California taxpayers.
We can't afford to be misled.
The hidden provisions in Prop. 90 create a new category of
lawsuits that allow wealthy landowners and corporations to
sue for huge new payouts. These lawsuits and payouts would
cost California,taxpayers billions of dollars every year.
That's why groups representing taxpayers, horieowners,
businesses, police and fire, environmentalists, and faimers all
urge you to Vote NO on 90.
THE LEAGUE OF WOMEN VOTERS OF CALIFORNIA
says: "Prop. 90 woutd fundamentally change our system of
representative democracy and put the interests ofafew above
the well-being of ALL Californians. "
Prop. !0 is anti-taxpayer and antihomeowner.
That's. why THE LEAGUE OF CALIFORNIA
HOMEOWNERS OPPOSES PROP. 90 and says: "Prop.
90 is a trap that actually hurts homeowners. It would cost
taxpayers billions and erode basic laws that protect our
coinmunities, our neighborhoods, and the value of our
homes.
Say NO to the Taxpayer TRAP. Vote NO on 90.
www.NoProp90.com
KENNETH W. WILHS, President
League of California Homeowners
CHIEF MIGHAEI L. WARREN, President
California Fire Chiefs Association
JAC0UEtINE JACOBBERGER, President
League of Women Voters of Califomia
94 I .Arguments * * * Arguments printed on this page are the opinions of the atuhors and have not been checked for accuracy by any fficiai agency.
/^\a-n /''{(
GOVERNMENT ACQIISITION, REGULATION OF PKIVATE PROPERTY
* * * TNTTIATIVE CONSTITUTIONAT AMENDMENT
PROP
90
ARGUMENT AGAINST PROPOSITION 90
The handful of wealthy ldndowners that paid to put
Prop. 90 on the ballot are trying a classic bait and switch on
California voters.'
They want you to believe Prop. 90 is about eminent
domairi. That's the bait. But, hidden in the fine print of the
measure is the trap-a far-reaching section unrblated to
eminent domain that would lead to huge new costs for a//
California taxpayers.
Prop. 90 would change California's constitution to enable
large landowners and corporations to demand. huge payouts
from state and local taxpaye$ just by claiming a law has
harmed the value of their property or business-no matter
how important the law may be or far-fetched the claim.
According to William'G. Hamm, formelly California's
nonpartisan legisl,ptive analyst, "PROP. 90 could require
BILLIONS OF DOLLARS IN NEW TAXPAYER COSTS
E[cH VBai, if communities anil the state continue to
pass or enfurce basic laws to protect neighborhoods, limit
unwanted development, protect the environment, restrict
unsavory businesses, and protect consiJmers."
With no limit on the total costs, Prop. 90 traps taxpayers
into signing a blank pheck. We all pay, while large
landowners and corporations reap windfall payouts..
Herels an example of how the ootaxpayer'Irap" works:
If local votets pass a measure to limit a new dovelopmeirt
to 500 houses-instead oJ 2,000 houses that a developer
wants lo build-under Prop. 90, the developer could demand
a payment for the value. of the remaining 1,500 houses.
Sven if{ocal community services arid infrastructure would
be strained by the larger development, Prop. 90 would put
taxpayers at risk for payment. ! "
Prop. 90'is not just limited to land-pse laws. Read the
official analysis. Statewide consumer protection laws,
restrictions on telemarketing, and worker protections would
all trigger new demands for payouts,
As a result, Prop. 90 would lead to thousands of expensive
lawsuits that would tie up our courts and result in added
bureaucracy and red tape.
The cost of these lawsuits and payouts would rob local
cotnmunities of billions of dollars in limited resources that
fund fire and police protection, paramedic tesponse, schools,
'traffic cgngestion reliqf, and other vital services. That's
why the CALIFORNIA FIRE CHIEFS ASSOCIATION,
CALIFORNIA POLICE CHIEFS ASSOCIATION, and
CALIFORNIA SCHOOL BOARDS ASSOCIATION oppose
Prop.90.
PROP. 90 would trap taxpayers in a LOSE-LOSE
situqtion. If communities act to protect their quality of
life, taxpayers could be forced to make huge payouts. Or,
if communities couldn't afford the payouts, basic quality-
of-life protections simply couldn't be enacted. That's why.
conservation grou.ps, including the CALIFORNIA LEAGUE
OF CONSERVATION VOTERS and the PLANNING AND
CONSERVATION LEAGUE, warn the measure would
drastically limit our ability to protect California's coastline,
open spaces, farmland, air and water quality.
. For more informationon Prop. 90, visittuww.NoProp90.com.
When you vote, please join groups representing California
taxpayers, firefighters, law enforcement officers, educators,
'small businesses, land conservationists, the gnvironment, and
homeowners
Say NO to the TAXPAYER TRAP. Vote NO on
PROPOSITION 90.
CHIEF MICHAEI t. WARREN, President
California Fire Chiefs Association
GHIEF STEVE KRUI[, President
California Police Chiefs Association
EDWARD TH0MPS0N, JR., California Director
American Farmland Trust .
REBUTTAL TO ARGUMENT AGAINST PROPOSITION 90
DON'T BE FOOLED BY SPECIAL'INTERESTS!!! I
Proposition 90 protects our fundamental right to own-
and keep----our homes and private property. It's called the
"AMERIC{|-j DREAM," and govemment should not be in
the business of destroying it.
Profosition 90 fixes the Supreme Courtls outrageous Kelo'
decision.' Opponents-those who profit most from abusing eminent
domain and taking private properry-are shamelessly trying
to mislead you and distort what Proposition 90 does.
Opponents say.read the fin'e print. WE, AGREE. You'll
see:
Proposition 90 MAINTAINS EVBRY current state
and local environmental, consumer protectionr and public
safety law and regulation. Read Section 6, which states,
"the provisions added to this section shall not apply to any
statuie, charter provision, ordinance, resolution, law, rule or
regrrlation in effect on the date of enactment."
Proposition 90 HAS NOTHING TO DO with funding for
police or firefighters.
The public health and safety are PROTECTED. The
Legislature can enact ANY NEW LAW to ensure priblic
health and safety.
Proposition 90 protects YOU from politicians who reward
their campaign contributors by taking your private property
and giving it to someone else.
The REAL opponents of Proposition 90 are those
who profit by TAKING OUR HQMES AND SMALL
BUSINES SES-greedy government bureaucrats who Want
higher taxes and' meja--developer campaign contributbrs
who make-millions bsing agricultural land, residential
neighborhoods, businesses, and churches seized through
eminent domain to develop strip malls and other projects.
IF THEY WIN, WE LOSE.
PROTECT OUR HOMES: VOTE YES ON 90.
MlMl WAITERS, Honorary Chair
California Protect Our Homes Coalition
MARTYN B. H0PPER, California Director
National Federation of Independbnt Business (NFIP)
JOHN M. REVELLI, Eminent Domain Abuse Victim
Arguments.printed on this page are the opinions ofthe authors and have not been checkedfor accuracy by any fficial agency, * * * AfgUmgntS I 95
AN OVERVIEW OF STnfE BOND DEBT * * *
This section provides an overview of the state's
current situation involving bond debt. It also discusses
the impact that the bond measures on this ballot would,
if approved, have on the state's debt le,vel and the costs
of paying off such debt over time.
Background
What Is Bond Financing? Bond financing is a
type of long-term borrowing that the st?te uses to
raise money for various purposes. The state obtains
this moneyby selling bonds td investors. In exchange,
it agrees to repay this money, with interest, according
to a specified schedule.
l4hy Are Bonds llsed?The state has traditionally
used bonds to finance major capital outlay projects
such as roads, educational facilities, prisons,
parks, water projects, and office buildings (that is,
infrastructure-related projects). This is done mainly
because these facilities provide services over many
years, their large dollar costs can be difficult to pay
for all at onceo and different taxpayers benefit over
time from the facilities. Recently, however, the state
has also used Qond financing to help close major
shortfalls in its General Fund budget.
ll'hat Types of Bonds Does the Stute Sell? The
state sells three major types of bonds. These are:
. General Fand-Supported Bonds. These are
paid off from the state's Geoeral Fund, which
is largely supported by tax revenues. These
bonds take two forms. The majority are general
obligation bonds. These must be approved by
the voters and their repayment is guaranteed
by the state's general taxing power. The s.econd
type is lehse-revenze bonds. These,are paid off
from lease payments (priniarily financed from
the General Fund) by state agencies using the
facilities the bonds finance. These bonds do not
require voter approval and are not guaranteed.
As a result, they have somewhat higher interest
costs than general obligation bonds.
Traditional. Revenue Bonds. These also finance
capital projects but are not supported by the
General Fund. Rather, they are paid off from a
designated revenue stream-usually generated
by the projects they finance-such as bridge
tolls. These bonds also are not guaranteed by the
state's.general taxing power and do nbt require
voter approval.
. Budget-Related Bonds. In March 2004, the
voters'approved Proposition 57, authorizing
$15 billion in bonds to help pay off the state's
Prepared by, the Legislative Analyst's Office
accumulated budget deficit and other obligations.
Of this amount, $11,3 billion was raised through
bond sales in May and June of 2004, and $3.7
billion is available for later sales. The impact on
the General Fund of paying off these bonds is an
annual cost of about $1.5 billipn. (Current law
also allows for additional debt-service payments
from 'the Budget Stabilization Account-BSA-
established by Proposition 58 in order to pay off
the bonds earlier.) The bonds' repayments are also
.guaranteed by the state's general taxing power.
llhat Are the Direct Costs of Bond Financing?
The state's cost for using bonds deperrds primarily
on the amount sold, their interest rates, the time
period over which they are repaid, and their
maturity structure. For example, the most recently
sold general obligation bonds will be paid off over
a 3O-year period with fairly fevel annual payments.
Assuming that a bond issue carries a tax-exempt
interest rate of 5 percent, the cost of paying it off
with level payments oyer 30 years is close to $2 for
each dollar borrowed-$1 for the amount borrowed
and'close to $1 for interest. This cost, however, is
spread oirer the entire 30-year period, so the cost
after adjusting for inflation is considerably less-
about $1.30 for each $1 borrowed.
The State's Current Debt Situation
Amo.unt of Generat Fand Debt. As of July 1,
2006, the state had about $45 billion ofinfrastructure-
related General Fund bond debt outstanding on which
it is making principal and interest paymints.'This
consists of Lbout $:Z Ulttion oflgeneial obligaiion
bondq and $8 billion of leasg-revenue bonds. In
addition, the state has not yet sold about $30 billion
of authorized general obligation and lease-revenue
infrastructure bonds. Most of these bonds have beerl
committed, but the projects involved have not yet
been started orthose inprogress have notyetreached ,
their major construction phar". The above totals
do not include the budget-related bonds identified
above.
General Fand Debt Payments. We estimate
that General Fund debt payments for infrastructure-
related general obligatiorl arid lease-revenue
bonds were about $3.9 billion in 2005-06. As
previously authorized but currently unsold bonds
are marketed, outstanding bond debt costs will
peak at approximately $5.5 billion in 2010-ll. If,
in addition, the annual costs of the budget-related
bonds are included, total debt-service costs were
$5.1 billion in 2005-06, and'will rise to a peak of
96 I An 0verview ol State Bond Debt * * *
,/t
* * * AN OVERVIEW t/F STAIE BOND DEBT
Preitared by the Legislative Analyst's Office
$8.4 billion in 2009-10. (These amounts assume
additional repayments from the BSA.)
Debt-Service Rutio. One indicator of the state's
debt situation is its debt-service ratio (DSR). This ratio
indicates the portion of the state's annual revenues
that must be set aside for debt-service payments on
bonds and therefore are not available for other state
programs. As shown in Figure 1, the DSR increased
in the early 1990s and peaked at 5.7 percent before
falling back to below 3 percent rn 2002-03, partly
due to some def,icit-refinancing activities. The DSR
then rose again beginning in 2003-04 and currently
stands at 4.2 percent for infrastructure bonds. It
is expected to lncrease to a peak of 4.8 percent in
2008-09 as currently authorized bonds are sold'
Effects of the Bond Propositions
on This Ballot
There are five general obligation bond measures
on this ballot, totaling $42.7 billion in new
authorizations. These include :
. Proposition lB, which would authorize the
state to issue $19.9 billion of bonds to finance
highway safety, traffic reduction, air quality,
and port security.
. Proposition lC, which would authorize the state
to issue $2.85 billion of bonds for housing and
development programs.
. Proposition 1D, which would authorize the
state to issue $i0.4 billion of bbnds to finance
kindergarten through university education
facilities.
. Proposition lE, which would authorize the state
to issue $4.1 billion of bonds for flood control
projects.
. Proposition 84, which would authorize the state
to issue $5.4 billion of bonds to fund various
resource-related proj ects.
The first four measure s make up an infrastructure
bond package approved by the Legislature and
Governor. The fifth measure was placed on the
ballot through the initiative process.
Impucts on Debt Payments.If the $42.7 billion
of bonds on this ballot are all approved, they would
require total debt-service payments over the life of
the bonds of about twice that amount. The average
annual debt service on the bonds would depend on
the timing of their sales. If they were sold over a.
l0-year period, the budgetary cost would average
roughly $2 billion annually.
Impact on the Debt-Service Ratio. Figure I
shows what would happen to the state's DSR over time
if all of the bonds were approved and sold. It would
peak at 5.9 percent in 2010-1 I and decline thereafter.
"Ratio of debt:service payments to reVenues and transfers. Excludes budget-related bonds
Added Cost From Sale of:r Ssnd5 on November 2006 Ballot
-
Previously Authorized Bonds
1 985-86 1 S95-90
I
2
3
4
6
7%
2005-06 2015-16prolected
FIGURE 1
General Fund Debt-Service Ratio'
* * * An 0verview ol State Bond Debt I 97
LIST OF CANDIDATES FOR STATEWIDE
ELECTIVEOFFICE***
Proposition 34 was adopted by'the voters at the November .7, 2000 General Election.
Under this measure, any candidate for Governor, Lieutenant Governor, Secretary of State;
Controller, Treasurer, Attorney General, Insurance Commissioner, or Member of the Board of
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.
The expenditure limit for candidates running for Governor in the November 7,2006 General
Election is $ I 1,150,000. The expenditure limit for candidates running for Lieutenant Governor,
Secretary of State, Controller, Treasurer, Attorney General, and Insurance Commissioner in the
November 7 ,2006General Election is $6,690,000. The expenditure limit for candidates running
for the Board of Equalization in the November 7,2006 General Eiection is $1,672,000.
The following list ofcandidates for statewide elective office is currentthroughAugust 14; 2006.
For a current list of candidates, please see http://www.ss.ca.gov/elections/elections_cand.htm.
In the following list, an asterisk (*) designates candidates who have accepted the voluntary
spending limits.
GOVERNOR
Angelides, Phil Democratic
* Camejo, Peter Miguel' Green
*Jordan, Janice Peace and Freedom
* Noonan, Edward C. , American Independent
* Olivier, Art Libertarian
Schwarzenegger, Arnold Republican
*LIEUTENANT GOVERNOR
* Alexander, Stewart A. Peace and Freedom
* Garamendi, John ' Democratic .
* King, Jim American Independent
* McCljntock, Tom Republican
* Shaw, Lynnette Libertarian
* Warren, Dorina J. Green
SECRETARY OF STATE
* Akin, Margie Peace and Freedom
x Bowen, Debra Democratic
* Hill, Forrest Green
* Lightfoot, Gail K. Libertarian
* McMillon, Jr., Glenn American Independent
* McPherson, Bruce Republican
I
CONTROLLER J
* Barr6n, Elizabeth Cervantes Peace and Freedom
Campbell, Warren Mark American lndependent
* Chiang, John Democratic
* Strickland Tony Republican
* Tlllo, Donna L,ibertarian
* Wells, Laura Green
* Candidate has accepted uoluntary spending limits.
98 I List ol Candidates for Statewide Elective office * * *
-a'{(
IIST OF CANDIDATES FOR ST{TEWIDE
ELECTIVEOFFICE***
TREASURER
Lockyer, Bill
*Noonan, E. Justin
* Parrish, Claude
* Sanders,'Gerald
* Smithson, Marian
* Thakker, Mehul M
Democratic
American Independent
Republican
Peace and Freedom' '
Libertarian
Green
BOARD OF EQIALIZATION
District'1
Campbell, David Peabe and Freedom
* Neighbors, David J.' Republican
x Watson, Kennita !,ibertarian
* Yee, Betty T. Democratic
ATTORNEY GENERAL
Brown, Jerry Democratic
*Harrison, Jack Peace and Freedom
Poochigian, Chuck Republican
* Weissman, Kenneth A, Libertarian
*Wyman, Michael S. Green
INSURANCE COMMISSIONER
Burden, Jay Ear.l American Independent
x Bustamante, Cruz M. Democratic
* Cafiero, Larry Green
* Cor-rdit, Tom , Peace and Freedom
Ogden, Dale F. Libertarian
Poizner, Steve Republican
District 4
Chu, Judy
* Forsch, Glen
* Henderson, Cindy Varela
* Kadera, Monica W.
District 2
* Leonard, Bill
Michlin, Willard Del
* Perry, Richard R.
*Raboy, Tim
District 3
Christian-Heising, Mary
Finley, Mary Lou
* Steel, Michelle
Republican
Libertariai
Peace and Freedom
Democratic
Democratic
Peace and Freedom
Republican
Democratic
Republican
Peace and Freedom
Libertarian
* Candidate has acceptetl voltmtary spending limits.
* * * List of Candidates for Statewide Elective Otfice I 99
0ANDTDATE STATilEJS BY oFFtCE o
GOVERNOR
***
o As the state's chief executive officer, oversees most state departments and agencies and appoints judges.
o Proposes new laws and approves or vetoes legislation.
o Prepares and submits the annual state budget
r Mobilizes and directs state resources during emergencies.
ART OLIVIER
Libertarian Party
www.electArt.com
CUT SPENDING! California recalled the Governor three years ago when he proposed a $96,000,000;000 budget. Now it's
$131,000,000,000 plus $43,000,000,000 in bonds on the November ballot. NO BENEFITS FOR ILLEGAL IMMIGRANTS.
Giving free healthcare and education to illegal immigrants encourages more illegal immigration. California bannot afford
it. END GRIDLOCK. Spend gasoline taxes and vehicle license fees on building more lanes and allow the construction of
private toll roads for commercial trucks. Art Olivier cut taxes and improved services as Mayor and will do it again as our next
Governor!
JANTCE IORDAN
Peace and Fieedom PaLrty
wwwjanicejordan.org
Low-Cost Housing. Universal Health Care. Livable Wage. VOTE YOUR CONSCIENCE! NOT YOUR FEAR!
PETER MIGUEL CAMEJO
Green Party
17l0 Broadway #122
Sacramento, CA 95818
(sr0) s87-0807
info@votecamejo.com
wwwvotecamejo.com
You've heard the expression, "I would have to write a book." Well, I did. It's called: "California: Under Corporate Rule."
Corporations control our electoral system, want to y)riuatize our schools, name our sports fields, control our media, destroy' our ecology, and promote wars of plunder. Most profitable corporgtions pay no state taies in California. Ninety percent of our
people on average have received no increase in inflation adjusted pay in 35 years and our real minimum wag" has dropped
dramatically while our economy more than doubled and corporate profits soared. My web site shows how a FAIR TAX
can raise an additional $25 billion for our budget, allowing us to dramatically increase education funding, begin a massive
move to alternative energyD and modernize our infrastructure, while reducing most people's taxes. Immigiants actually help
create jobs. Marria$e must be an option for everyone. The death penalty, three strikes, and racial profiling must end. Our
outdated, exclusionary, winner-take-all tnoney-controlled electoral system has been universally rejected. We need public
funding, proportional representation, and ranked choice voting, where people feel free to vote forihe candidates they support
and can hear all points ofview. 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 b. NOONEN
American Indep endent Party
1606 Gold St.
Marysville, CA 95901
(s30) 743.6878
v ote200 6 @ ednoonan4gov.org
www.ednoonan4gov.org
See my webpages: ednoonan4gov.org, http:/Avww.aipca.org, http://www.constitutionparty.org
100 I Gandidate Statements* * *
TYNNETTE SHAW
Libertarian Party
7336 Santa Monica#822
West Hollywood, CA 90046
LIEUTENANT GOVERNOR
***
. Assumes the office and duties of Governor in the case of impeachment, death, resignation, removal from office,
or absence from the state.
. Serves as President ofand presides over the State Senate and has a tie-breaking vote.
r Chairs the Economic Development Commission, is a member'of the State Lands Commission, and sits on the
boards of the California university systems.
o Serves as an qx-officio member of the California State World Trade Commission.
(4ts) 209-3996
lynnette @voteshaw.info
www.voteshaw.info
The war against patients and their physicians must stop. Medical cannabis has been legal for ten years, but the authorities
continue to arrest caregivers,.patients, and doctors. This is a waste of time, human resources, and taxpayers' money. My
Marijuana Peace Plan has been in operation for nine years in Marin County. This program has removed many illegal drug
dealers from our streets, prgtected patients, and improved the quality of the medicine. Please join with me and Willie Nelson
to help save family farms with industrial hemp and to protect your medical rights. I am Lynnette Shaw, and I would appreciate
your vote for Lt. Governor. www.ca.lp.org
DONNA I. WARREN P.o.'Box 88808 (213) 427-8st9
Green Party Los Angeles, CA 90009 ecottry@socal.rr.com' www.donnawarren.com
Running with the Million Votes for Peace Campaign, in lg9g, I sued the CIA for the crack "oJuin"
infestation in South
Central]and, in2004,I helped coordinate Prop.66 to amend California's Three Strikes Law. I will guide the Legislature
to represent the people, not corporations and special interests. Don't be fuellsft-stop voting for oil companies at the gas
pump. Stop Glbbal Warming, and keep California competitive in science/medical research. For my complete platform, see
www.donnawarren.com.
STEWART A. ATEXANDER 40485 MunietaHot Springs Rd., Ste. 149
Peace and Freedom Party Murrieta,CA92563
Working people need a greater voice in government.
(909) 223-2061
stewartalexa nder 4p af @comcast. net
www.salt-g.com
The
and
* * * Candidate Statements I 101
TOM McCLINTOCK
R.epublican Party
1029 K Street, Suite 44
Sacramento, CA 95814
LTEUTENANT GOVERNOR
* * * (Continued)
(916) 446-1246
info @tommcclintock.com
www.HelpTom.com
A generation ago, California was a land of opportunity with low taxes, plentiful jobs, affordable housing, cheap electricity,
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 school system in the country. The only thing that has changed between
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
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 begdn the movement to abolish California's car tax that now sdves 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.
Together, we can restore to our children the Golden State that our parents gave to us. Please visit my Web site at
www.HelpTom.com to see my proposals and to help this grassroots campaign for California's future.
(916) 863-6881
info@garamendi.org
www.garamendi.org
It's time we use the Lieutenant Governor's office as a forceful advocate for children, hardworking families, and retired
Californians. That's my approach as Insurance Commissioner-protecting consumers, punishing fraud, and delivering results:
Over SI billion in insurance rebates-$22 billion in auto insurance savings-$24 millioi in additional homeowner benefits to
fire victims-$46 million in insurance qompanyfines. As Lieutenant Governor I will be the same powerful advocate-working
for you to fully fund schools, helping small businesses thrive in the world marketplace, fighting to provide every Californian
quality healthcare that values people before profits. and protecting women's rights. As a University of California Regent and
State Unive(sity Trustee; l'llbe the guardian of higher education-promoting excellence in education, fostering research, and
creating innovation. On the State Lands Commission, I'11 take the same approach I used as President Clinton's Deputy Interior
Secretary- Trotecting Calfornia's magnificent coast, parks, and natural resources.I'll address climate change by promoting
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. Califurnia's teachers,
police,firefighters, Senator Feinstein, and Al'Gore share tuy vision and respect my independence. They endorse my candidacy.
I stand by my repord as Insurance Commissioner, Deputy Interior Secretary, State Senator, Academic All-American at U.C.
Berkeley, Harvard MBA, Peace Corps Volunteer, husband, and father. I respectfally reqLrest your vote. www.garamendi.org
The
and
IOHN GARAIvIENDI
.Democratic Party
P.O. Box 496
Sacramento, CA 95812
102 I Gandidate Statements * * *
SECRETARY OF STATE
***
r As the stateh chief elections offlcer, administers and enforces election laws and keeps records of all campaign
and lobbyist disclosure statements required under the Political Reform Act.
o Files official documents relating to corporations, trademarks; the Uniform Commercial Code, notaries public,
and limited partnerships.
o Collects and preserves historically valuable papers and artifacts in the California State Archives.
r Serves as an ex-officio member of the California State World Trade Commission. \
578 Washington Blvd. #409
Marina del Rey, C490292
(
Cali.fornia must never be like Florida or Ohio. Election results must be free from doubts about. fraud and manipulation. As
Chairwoman of the Sdnate Elections Committee, I'm fighting to make sure your vote ii counted accurately and to end the"
domination of big money on elections. Your Secretary of State must bring integrity baek to the electoral process. I fought to
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 gtfts as an elected official, and I've pre$sed to limit the influence
of special interest money. I've written bills requiring clear disclosure about who is paying to put initiative petitions on the
ballot. I wrote the first proposal to allow voters to get vote-by-mail ballots automatically. I'm working to expand the Safe
at Home program in the Secretary of State's office, which allows victims of domestic violence to keep their abusers from
knowin! where they live. I'm afighterfor consumer protection, privacy rights, open government, and choice. I led the nation
by authoring a landmark measure to prevent your Social Security number from misuse and to protect you from identity
theft. Senators Barbara Boxer and Dianne Feinstein, the National Organization for Women-California, California Nurses
Association, California Federation of Teachers, and the Sierra Club have joined together to. support me. Please join me in the
fight to clean up campaigns and elections. I respectfully request your vote.
DEBRA BOWEN
Democratic Party
(310) 823-3106
info@debrabowen.com
www.debrabowen.com
MARGIE AKIN
Peace and Freedom Party
FORREST HII,I
Green Party
2D2l2Harvard Way
Riverside, CA92507
815 Washington Street, Suite 24
Oakland, C1.94607
(9s1) 787-0318
margieakin@hotfnail.com
www.akin2006.com
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.
(415) 839-7300
forrest@VoteForre st.org
wwwVoteForrest.org
California's electoral system neeQs a complete overhaul, not bandagesl'We must end gerrymandefing and ensurg all citizens
are fully represented in government; Give citiz'ens more choices with Instant Runoff Voting; Demand all votes are accurately
counted and voting machines prodube 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
and
* * *Candidate Statements i 103
SECRETARY OF ST{TE
* * * (Continued)
BRUCE McPHERSON
Republican Party
925 University Ave.
Sacramento, CA 95825
www.mcpherson2006.com
In 2005, I was nominated to be Secretary of State by the Governor and unanimously confirmed by every pemocrat and
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.
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
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,
we encourage people to do business online rather than in line. I have worked to improve California's international trade
opportunities so California remains the 6th largest economy in the world. My positive record speaks for itself. I'm proud to be
supported by the California Teachers Association, CaliforniS Sheriffs Association, California Women's Leadership Association,
California Small Business Association, California Farm Bureau, and a bipartisan group of elected officials. I respectfully
.requeslyour vote for Secretary of State. Please visit www.mcpherson2006.com
GLENN McMILLON,IR.
American Independent Party
14400E.l4th St., Apt. l1
San Leandro, CA 94578
(510) 483-284s
mcmillon@alum.mit.edu
www.aipca.org
Pro-Life. Pro-Family. Pro-Enforcement. www.myspace.com/mcmillon2O06. www.aipca.org.
GAII K. ttGHiTFOOT
Libertarian Party
FULLY INFORM VOTERS.
P.O. Box 598
Pismo Beach,CA93448
(811) 6t6-1776
SOSVoteLP@aol.com
www.smartvoter.org
The
and
104 I Candidate Statements* * *
CONTROLTER
***
o As the state's chief fiscal officer, acts as the state's accountant and bookkeeper of.all public funds.
o Administers the state payroll system and unclaimed property laws.
o Serves on numerous boards and commissions including the Board of Equalization and the Board of Control.
o Conducts audits and reviews of state operations.
TONY STRICKLAND
Republican Party
P.O. Box 1371
Thousand Oaks, CA 91358
(80s) 297-4s29
tony@tonystrickland.com
www.tonystrickland.com
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
the waste, fraud, and corruption out of the bureaucracy-and required those applying for state programs to provide proof of
citizenship-we could balance o'ur budget, fix our roads, protect our neighborhoods, and pay our teachers what they deserve,
without raising taxes. As your Controller, I'll audit the bloated LA Unified School District, and I'11 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
politicians were afraid to rock the boat, I sued Gray Davis over his secret contracts with the energy companies-and won. I've
led the battle to eliminate the double taxation on gasoline. And when others were going along with multi-billion dollar budget
deficits, I led the fight to festore accountability and common sense. I am endorsed by California's major taxpayer organizations
because they know that I won't back down when your tax dollars are at stake. Waste hurts us all. It robs our classrooms,'
shortchanges our teachers, and leaves us all stranded in traffic. As your Controller, I'll take on the bureaucracy in every area
of government, from welfare to the DMV to our public health system. You work hard for youimoney, and you have a right to
have your tax dollars spent honestly. You can help by visiting www.TonyStrickland.com.
TAURA WELLS
Green Party
P.O. Box 16025
Oakland, CA 94610
info@LauraWells.org
www.LauraWells.org,
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 bodkkeeper, the one who reports to
the citizens who elected her exactly how their money is being managed. My over 20 years in financial systerns-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
lhat 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.
The order ofthe candidates is determined by random alphabet drawing. Statements on this page were supplied by the cqndidates
and have not been checkedfor accuracy. Each statemenl v,as voluntaril), submitted by lhe candidqte and is printed at the expense
ofthe candidate. Candidates who did not sttbmit statements could olherwise be qualifed to tippear on the ballot.
* * * Candidate Statements I 105
CONTROLLER
* * * (Continued)
IOHN CHIANG '
Democratic Party
600 Playhouse Alley #504
Pasadena, CA 9l l0l
(626) s3s-9616
i n fo @ chi an g forcali for n ia. c om
www.chiangforcalifornia.com
California needs a Controller to slam shut corporate tax loopholes and insist that the oil and insurance.companies pay their
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
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 policyadvisor 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
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 solidfoundation to become
what is essentially the state's chief financial fficer." 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's classroom teachers. For more information: www.ChianglforCalifurnia.com
ELIZABETH CERVANTES BARRON 1720 Main Street
Peace and Freedom Party Venice, CA9029l
Raise taxes on the rich; lower taxes on workers.
(9s1) 787-0318
ebtlaloc@aol.com
www.pfpboe.org
DONNA TETLO
Libertarian Party
13446Poway Road#202
Poway, Cl.92064
donnatello4cacontroller@ cox.net
wwwdonnatello.da.ru
Control gpending, not people. Protect taxpayers, not special interests.
The
and
106 I Gandidate Statements* * *
TREASURER
***
o As the state's bankeq manages the state's investments.
o Administers the sale of state bonds and notes and is the investment officer for most state funds.
r Chairs or serves on several commissions, most of which relate to the marketing of bonds.
o Pays out state funds when spent by the Controller and other state agencies.
MARIAN SMITHSON
Libertarian Party
California needs leadership with fiscal responsibility. Vote NO on bond measures.
(626) ere-rse3
mariansway@ earthlink. net
CTAUDE PARRTSH
Republican Party
P.O.Box2427
Palos Verdes, CA90274
(213) 688-8862
parri shfortreasurer@ gmail. com
www. smartvoter.org/vote/Parrish
State bond interest payments are consuming an ever increasing portion of the state's budget. This puts pressure on the
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
State Treasurer must go before the Legislature to oppose all but the most vital or cost effectivp bond issues! Second, having
held NASD Security licenses has given me an understanding of the financial markets. We need to eliminate dealing with ths
"Middle Men" from "Wall Street" that receive hundreds of millions of dollars in underwriting fees and instead have ou/bonds
underwritten by allocation to California-based brokerage firms. Not only will the state'save hundreds of millions of dollars,
California will receive taxes from those California-based firms. Third, the Treasurer'i office needs to be accessible to the
public and run in a cost-effective, efficient manner. Here's why. For Caliiornia.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
Green Party
815 Washington St. #52
Oakland, CA94607
mehul @votethakker. com
http : //wwwVoteThakker. com
Corporate ftioney should not buy political infiuence, so I don't take contributions from big businessl 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 progrdms. 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 bdlance
California's budget immediately if the top l0lo 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 engure 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 alt
Californians.
The order of rhe candidates is tle:teriiid by ranaon iUnatil
and have nol been checkedfor accurac)L Each statement was voluntarily submilled by the candidate and is prtnted at the expense
of the candidate. Candidates who did not submit statements could otherwise be qualifed to appear on the ballot.
* * *Gandidate Statements I 107
ATTORNEY GENERAL
***
r As the state 's chief law officer, ensures that the laws of the state are uniformly and adequately enforced.
o Heads the Department of Justice, which is responsible for providing state legal services and support for local law
enforcement.
\o Acts as the chief counsel in state litigation.
o Oversees law enforcement agencies, including District Attorneys and Sheriffs.
, MICHAET S. WYMAN
Green Party
P.O. Box 9380
San Rafael, CA 94912
(41s) 78s-3448
v ote4mike @comcast.net
www.votewyman.org
Most Californians prefer life imprisonment without parole to the death penalty. Most Californians oppose lengthy prison
sentences for nonviolent offenders. Most Californians agree that the War on Drugs has been a complete failure. Most
Californians think that their poliie have better things to db than arrest the terminally ill for using medical marijuana. Most
Californians don't believe they should be spied upon by their'own government. Most Californians want equal rights for
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
California their rights. We need an attorney general who defends the people of California as energetically as we prosecute the
violent offen{er. I will be that kind of Attorney General. I ask for your support. Thank You.
KENNETH A. WEISSMAN
Libertarian Party
8484 Wilshire Blvd., Suite 850
Beverly Hills, CA 90211-3222
1323) 6ss-4s29
CalAG2006@yahoo.com
wwwElectKenWeissman.com
I will fight for your rights. Absolutist on Second Amendment. Secure our borders NOW
IACK HARRISON
Peace and Freedom Party
1312 Cornell Ave.
Berkeley, Cl'94702
(s10) s27-9s84
JackLHa@Pacbell.net
wwwjackharrison.org
Abolish the inhumane death penalty. Decriminalize marijuana. Expandparole and diversion services. Eliminate the disastrous
"three strikes" sentencing. Use State funds for people's needs. Prosecute the corirorate criminals and those who defile our
environment.
The
and
108 I Candidate Statements* * *
IN SURANCE COMMIS SIONER
***
. Oversees and directs all functions of the Department of Insurance
o Licenses, regulates, and examines insurance companies.
o Answers public questions and complaints regarding the insurance industry.
o Enforces the laws of the California Insurance Code an{ adopts regulations to i4plement the laws
TOM CONDIT
Peace and' Freedom Party
2124Kittredge St. #174
Berkeley, Cl.94704
(s10),84s-4360
"ondii
gp"u"eandfreedom.org
www.tomcondit.org
Insurance company profits soar, but millions don't have health care or real protection against accident and disaster. While
insurance cottrpatries pour money into "tort reform" schemes to deprive ordinaiy people of legal assistance, they spend billions
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
in profits on workers' compensation than they pay for medical care. I advocate putting human need before insurance company
profits. Let's publicly fund and manage a single system of quality health care for all, a state basic auto liability ptan, and a
.sin$le workers' compensation fund-all without insurance company profits, lawyers, or red tape. I will fight discrimination
based on race, sex, age. or geography.
TARRY CAFIERO
Green Party
P.O. Box 203
Ben Lomond, CA 95005-0203
(83r) 438-140r
larry4inscomm@earthlink.net
http : //ww w.votecafi ero.com
Candidate statements, once free, now cost'$20 per word. Fight pay-to-play government-Vote Green. My statement:
http :i/www.votecafi ero.com/statement
The
and
* * *Gandidate Statements i 109
BOARD OF EQIALTZNTION
***
Serves on the Board of Equalization, California's elected tax commission, a body that:
o Oversees the administration of overtwo dozen tax and fee programs including sales and use, cigarette and
tobacco, alcohol, and fuels tax.
o Serves as the appellate body for California income and franchise tax cases.
o Oversees the administration of property tax statewide.'
DISTRICT 1
BETTY T. YEE
Democratic Party
601 Van Ness Avenue #F'3-438
San Francisco,CA94102
www.BettyYee2006.com
All Californians deserve to be treated fairly by their government. During the time I have served on the Board of Equalization,
my actions and votes on all tax matters that have come before the Board demonstrate a strong commitment to fairness
and honesty. My experience in making careful decisions with your tax dollars, my strong sense of fairness in interpreting
California's tax laws, and my unblemished record of integrity and honesty make me your best choice to continue serving
and providing leadership as the First District Member on the Board of Equalization. I will oppose special tax breaks for the
wealthy. I will be a voice for all working persons. As your guardian of the state's revenues, my objective is to ensure California
has the resources needed to provide a bright future and opportunities for all of us and for generations to come-this means
quality schools in every community, access to health care for every Californian, a pristine natural environment, affordable
housing, adequate transportation systems, and safe neighborhoods. I am proud to have earned the endorsements of a broad
array oforganizations that represent the interests ofteachers, nurses, flrefighters, peace officers, workers, wbmen, students,
and taxpayers-all of whom recognize my financial expertise and commitment to protecting the interests of hardworking
Californians. I would be honored to continue serving you on the Board of Equalization.
DTSTRICT 2
BILL LEONARD
Republican Party
P.O. Box 277090
Sacra'mento, C495827
(916) 441-1043 Ext.2
leonard@billleonard.org
www.billleonard.org
California is a terrific place to live, but we need leaders who are not afraid to qtand 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
taxpayers-I have worked hard to hold government accountable. The State Board of Equalization is an independently elected
tax panel that makes the final decision inldisputes between taxpayers and government bureaucrats. Taxpayers deserve to have
an advocate fighting fortheir interests-and that is what I have done as a Member of the Siate Board of Equalizalion.Illegal
immigrants are among those who do not pay their fair share of taies yet get their full share of government benefits. Not enough
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
business owners have to pay all their taxes and sti1l 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
doliars. I woul4be honored to have your vote on November 7th.
The order of the candidates is determined by random alphabet drawing. Statements on this page were supplied b1t the candidates
and have nitt been checked for accurdcy. 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 qualifed to appear on the ballot.
1 10 I Candidate statements* * *
BOARD OF EQTALTZNITON
* * * (Continued)
' DISTRICT 2 (continued)
TIM RABOY
Democratic Party
(209) 2st-96es
info@timrabo];conl
www.timraboy.com
I am a Supervising Investigator for the Board of Equalization (BOE), Investigations Division, fourteen-year BOE employee,
and an Elected City Councilmember. Please visit www.timraboy.com.
DISTRICT 3
P.O. Box 132
Galt,cA95632
MICHELLE STEEL
Republican Party
27 520 Hawthorne Blvd. #270
Palos Verdes,CA90274
(310) 971-s86s
info@steelforboe.com
www.steelforboe.com
As a fiscal cohservative, I have been proud to serve as Chief Deputy to our current Member of the Boardof Equalization. Now
that the incumbent is retiring, it is vital that taxpayers have another fiscal watchdog to take his place. I will work to simplify
tax rules so that businesses and individuals will not be constantly victimized by a bureaucracy that frequently oversteps its
authority. As a rock-solid fiscal conservative, I will be the Taxpayer's Advocate against the bureaucracy. ,A.nd, believe me, we
need voices to speak out and defend taxpayers ! I have witnessed firsthand how the taxing agencies assume taxpayers are guilty
until proven innocent. And, I believe thaf approach is un-American. My philosophy is that every hearing should begin with
the presumption that the taxpayer is innocent. As'a businesswoman, wife, and mother, I know how tough it can be to make
ends meet. I believe the hardworking families of California deserve an Advocate who will stand with them against abusive
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 woild economy. I am ah experienced, fiscally conservative
professional who will not need on-the-job training, because I've already been on the job defending taxpayers. I.would be
honored to have your support. For any questions, please contact me at www.steelforboe.com.
DISTRICT 4
GLEN FORSCH
Republican Party
2806 Scott Road
Burbank, CA 91504
(818) 4ls-r1ee
GlenForsch2000 @aol.com
www.GlenForschForBOE.com
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
and pay our bills in California.'I know it's a great RESPONSIBILITY TO COLLECT THE TAXPAYER'S MONEY. I join
all REPUBLICANS, DEMOCRATS, INDEPENDENTS. AND ALL OTHER PARTIES;who want California TAXPAYERS
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
Government to Tax and Take Your Inheritance. I will not stand by and let you, your parents, or your children be TAXED INTO
POVERTY Gather your Family, Friends, and Neighbors to VOTE FOR GLEN FORSCH.
Tlte
and
* * *Gandidate Statements | 1 1 1
i:
BOARD OF E UALIZNION DI STRICTS BY COUNTY
Board of Equalization, District 1
Alam)eda, Colusa, Contra Costa, Del Norte, Humboldt, Lake,
Marin, Mendocino, Monterey, Napa, San Benito, San Francisco,
San Luis Obispo, San Mateo, Santa Barbara, Santa Clara,
Santa Cruz, Solano, Sonoma, Trinity, and Yolo
board of Equalization, District 2
Alpine, Amador, Butte, Calaveras, El Dorado, Fresno,
Glenn, Inyo, Kern, Kingp, Lassen, Los A4geles, Madera,
Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas,
Sacramento, San Bernardino, San Joaquin, Santa Barbara,
Shasta, Sierra, Siskiyou, Stanislaus, Sutter, Tehama, Tulare,
Tuolumne, Ventura, pndYuba '
Board of.Equalization, District 3
Imperial, Los Angeles, Orange, Riverside,' San Bernardino, San Diego
Board of Equalizatione District 4
Los Angeles
Equal ization Districts
I oistrict tI oistrict z
Santa
District 3
District 4
1 1 2 I Board of Equalization Districts * * *
I
THE ELECTORAL PROCEDURE'
ria C onstitution' j u sti c e s o f the Supreme C ""i: Ti T.::-l': -:.:t- :tH";under the california constitution, justices of the Supreme court and the courts of appeal are
subject to confirmation by the voters. The pubric votes "yes" of {'no" on whether to retain each
JU STICES OF THE SUPREME &APPELLATE COURTS * * *
For more information aboutthe Supreme Court Justices andthe Appellate Court Justices'please
visit the Secretary of State's website at www.voterguide. ss'ca' gov or www'ss'ca' gov or call
our toll-free voter line at 1-800-345-VOTE (8683)
justice.
These judicial offices are nonpartisan'
Governor.
(Elections Code Section 9083')
.n-zorn.'r rnrtst submit the candidate's
Beforeapersoncanbecomeanappellatejustice,theGovernormustsubr
name to the Judicial Nominees Evaluation Commission' which t: t"-p:::ed- of public members
and rawyers. The commission conducts a thoroughreview of the candidate's background and
qualifications, with community lnput, ;d then forwards its evaluation of the candidite to the
:nreviewsthecommission,sevaluationandofficiallynominatesthe
candidate, whose qualiflcations .aI: subject to public comment before examination and
reviewbytheCommissiononJudicialApp"l"g::,']n*commissionconsistsofthe.Chief
Justice of california, the Attorney Geneial of california, and a senior presiding Justice of the
courts of Appeal. The commission on Judicial Appoigtments must then confirm or reject the
nomination.onlyifconfirmeddoesthenomineebecomea.justice.
Fo'owing confirmation, the justice is sworn into.office and is subject to voter approval at the
next gubetnatorial election, and thereafter at tlrl colclusion of each term, The term pres*ibed
by the California Constitution for justices of the Supreme Court and courts of appeal is 12
years. Justices are confirmedby the commission on JudicialAppointments only until the next
gubdrnatorial election, at which time they run for retention of the remainder of the term' if
any,oftheirpredecessor,whichwillbeeitherfouroreightyears.
* * *Justices of the SuPreme & AP pellateCourts 1113
TEXT OF PROPOSED IAWS * * *
D
E
PROPOSITION 1A
This amendment proposed by Senate Constitutional Amendrnent
7 of the 2005-2006 Regular Session (Resolution Chapter 49, Statutes of
2006) expressly amends the California Constitution by amending a section
thereof; therefore, existing provisions proposed to be deleted are printed
in strilteouttype and new provisions proposed to be added are printed in
italic type to indicate that they are new.
PROPOSED AMENDMENT TO SECTION 1 OF
ARTICLE XIX B
SECTION 1. (a) For the 2003-04 fiscal year and each liscal year
thereafter, all moneys that are collected'during the fiscal year from taxes
under the Sales and Use Tax Law (Part I (commencing with Section 6001)
of Division 2 of the Revenue and Taxation Code), or any successor to
that law, upon the sale, storage, use, or other consumption in this State of
motor vehicle fuel, and that are deposited in the General Fund of the State
pursuant to that law, shall be transferred to the Transportation Investment
Fund, which is hereby created in ths State Treasury.
(b) (l) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys in
the Transportation Investment Fund shall be allocated, upon appropriation
by the Legislature, in accordance with Section 7104 ofthe Revenue and
Taxation Code as that section read on @
March 6, 2002.
(2) For the 2008-09 fiscal year and each fiscal year thereafter,
moneys in the Transportation Investment Fund shall be allocated solely for
the followi ng purposes:
(A) Public transit and mass transportation.
(B) Transportation capital improvement projects, subject to the
laws $overning the State Transportation Improvement Program, or any
successor to that program.
(C) Street and highway maintenance, rehabilitation, reconstruction,
or storm damage repair conducted by cities, including a city and county.
(D) Street and highway maintenance, rehabilitation, reconstruction,
or storm damage repair conducted by counties, including a city and county.
(c) For the 2008-09 fiscal year and each fiscal year thereafter,
moneys in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, as follows:
(A) Twenty percent of the moneys for the purposes set forth in
subparagraph (A) ofpaiagraph (2) of subdivision (b).
(B) Forty percent of the moneys for the purposes set forth in
subparagraph (B) ofparagraph (2) ofsubdivision (b).
(C) Twenty percent of the.moneys for the purposes set forth in
subparagraph (C) ofparagraph (2) ofsubdivision (b).
(D) Twenty percent ofthe moneys for the pmpose purposes setforth
in subparagraph (D) ofparagraph (2) ofsubdivision (b).
(d) The (1) Except as otherwise provided by paragraph (2), the
transfer ofrevenues from thd General Fund ofthe State to the Transportation
Investment Fund pursuant to subdivision (a) may be suspended, in whole
,or in part, for a fiscal year if both a// of the following conditions are met:
th tA) The Governor ltas_issued lssrres a proclamation that declares
that, due to o severe stetefscal harclship, the sispension o/the transfer of'
revenues prrsuant-to required by srbdivision (a) wi1ffit-h-asigd$eant
th€-ffiffith€ State i s n e c e s s a r y.
@ (B) The Legislature enacts by statute, pursuant to a bill passed
in each house ofthe Legislature by rollcall voti: entered in the journal, two-
thirds of the membership concurring, a suspension for that fiscal year of
the transfer of revenues pr rfirantto required 6y subdivision (a);pro.rided
that and the bill does not contain any other unrelated provision.
(C) No later than the effective date of the statute described in
subparagraph (B), a separate statute is enacted that provides for the full
repqyment to the Transportation Investment Fund of the total amount of
revenue that wds not transferred to that fund as a result of the. suspension,
including interest as provided by law. This full repayment shall be made
not later than the end of the thirdfscal year immecliately following the
fscal year to which the suspension applies.
(2) (A) The transfer required by subdivision (a) shall not be suspencled
for ntore than two .fiscal years during any period of I0 consecutive fiscal
years, which period begins u,ith the first fscal year commeqcing on or
after July 1,'2007; for which the transfer required by sttbdivision (a) is
suspended.
(B) The transfer required by stbdivision (a) shall not be suspended
drn'ing any fscal year if a full repayment required by a statute enactecl
in accordance with subparagraph (C) ofparagraph (l) has not yet been
contpleted.
(e) The Legislature may enact a statute that modifies the percentage
shares set forth in subdivision (c) by a bill passed in each house of the
Legislature by rollcall vote entered in'the journal, two{hirds of the
membership concurring, provided that the bill does not contain any other
unrelated provision and that the moneys described in subdivision (a) are
expended solely for the purpoSes set forth in paragraph (2) ofsubdivision (b).
(fl (1 ) An amoufi equivalent to the total antount ofrevenues that were
not tronsferred ft'dm the General Fund of the State to the Transportation
Investment Fund, as ofJuly I, 2007, becausd of a suspension of transfer
of revenues pursuant to this section as it read on January 1, 2006, but
excluding the arnount to be paid to the Transportation De-ferred Investment
Fund pursuant to Section 63048.65 of the Governntent Code, shall be
transferred front the General Fund to the Transportation Investment Fund
no later than Jtrne 30, 2016. Until this total antount has been tlansferred,
the arnount of transfer payments to be made in each fiscal year shall not
be less than one-tenth oJ the total amount required to be transferred by
June 30,2016. The transferled revenues shall be allocated solelyfor the
purposes setfotth in this section as ifthey had been received in the absence
of a suspension of transfer of revenues.
(2) The Legislature ntay provide by statute for the issttance of
bonds by the state or local agencies, as applicable, that are secured by
the minimunt transfer payments required by paragraph (1). Proceeds from
the sale ofthose bonds shall be allocated solely for the purposes setforth
in this_ section as if they were revenues subject to allocation pltrsuant to
paragrr)ph (2) of su.bdivision (b).
PROPOSTTION 18
This law proposed by Senate Bill 1266 of the 2005-2006 Regular
Session (Chapter 25, Statutes of 2006) is submitted to the people
in accordance with the provisions of Article XVI .of the California
Constitution.
This proposed law adds sections to the Government Code; therefore,
new provisions proposed to be aaded are printed in italic type to indicate
that they are new.
PROPOSED LAW
ta
SECTION l. Chapter 12.49 (commencing with Section 8879.20) is
added to Division l of Title 2 of the Government Code, to read:
Cn.qpron 12.49. Tnn Hrcaruv SlFEry, TRAFFIC Rroucnou,
An Quturr, AND PoRr SECURITr BIND Acr oF 2006
Article L General Provisiotts
'8879.20. (a) This chapter shall be known as the Highway Safety,
T"ffic Reduction,.Air Quality, and Port Security Bond Act of 2006.
(b) This chapter shall only beconte operative upon adoption by the
voters at the November 7, 2006, statewide general election.
B879.22. As used in this chapter, the following terms have the
't'"**t:;:::;r:;earns any department receittins an ailotation of bond
proceeds pursuatlt to this chapter.
(b) "Committee" means the Highway Safety, Trffic Reduction,
Air Quality, and Port Security Committee created pursuant lo
Section 8879.27.
(c) " Fund " means the Highway Safely, T'ffic Reduction, lit' Quality,
gnd Port Security Fund of2006 created pttisuant to Section 8879.23.
Article 2. Highway Safety, Trffic Reduction, Air Quality, and Port
Searity Fund of2006 and Progrant
1 14 I Text of Proposed laws* * *
(PROPOSITION 1B CONTINUED)* * * TEXT OF PROPOSED IAWS
8879.23. The Highu,ay SoJbty, T,'affc Reduction, Air Quali1t, and
Port Security Fund of 2006 is hereby d'eated in the State T'easury. The
Legislature intends that the proceeds of bonds deposited in the fund shall
be used tofund the ntobility, safety, and air qLt(tlity itnprovenents describecl
.in this article over the course of tlte next decade. The proceeds of bonds
issttecl and sold pursuant to this chapterfor the purposes specifed in this
chapter shall be allocated in the following manner:
(a) (l) Four billion fve hundyed million dollars ($4,500,000,000)
shall tie deposited in the Corridor Mobility ltnprovement Account, u,hich
is hereby created in the fund. Funds in the account shall be available to
the California Transportation Comntission, upon appropriation in the
annual Bttdget Bill by the Legislatttre, for allocation for performance
improventents on highly congested travel corridors in California. Funds
in the account shall be used for performance improvenlents ot't the stote
highway system, or major access routes to the state highu,ay system on
the local rodd system thal relieve congestiot't by expanding capacity,
enhancing operations, or otherwise improving travel lintes ytithin these
high-congestion tavel coridors, as identified by the departntent and
regional or local transportdtion agencies, pursuanl to the process in
paragraph (3) or (4), as applicable.
(2) The commission sltall develop and adopt guidelines, by December
l, 2006, including regional programming targets, Jbr the program funded
by this subdivision, and shall allocate funds from tlle account to projects
after reviewing project nontinations submitted by the Departmenl of
Transportation and bSt rggionol 1,'ansportation plenning agencies or corrnt),
transportation commissiotts or authorities ptu'suant to paragraph (4).
(3) Subject to the guidelines adopted plrrsltant to paragraph (2). the
department shall nominate, by no later than Januu'y 15, 2007, projects
for the allocation offunds.from the account on a statev,ide basis. The
department's nominations shall be geographically balanced and sltall
refect the department's assessntent ofe prcgrant thot best meets the policy.
objectives described in paragraph (1).
(4) Subject to the guidelines adopted purstnnt to paragraph (2),
a regionol transportation planning agency or colllty transpoftation
commission or authority responsible for preprtring a regional
trunsportation improvement ,plan under Section 14527 ntcty nominate
projects identifed plrslrant to paragraph (l) that best meet the policy
.objbctives described in that paragraphforfundingft'orn the account. Projects
nominated plrrsuant to this paragraph shall be sub'nitted to the contntission
for consideration.forfunding b1, no later than Janlnry, 15, 2007.
(5) AII nominations tb the Califurnia n'ansportatioil Comnission
shall be accompanied by documentation regotding the quctntitrttive ancl
qtralitative measures validating each project's consistenclt witlt tlte polic)t
objectives described in paragraph (1). All projects nontinated to the
commission for funds.from this accouttt shatl be included in o teg:ionul
tronsporlation plon.
'(6) After review of the project nominations, and sttpporting
documentcttion, the conntission, by no later than Murch I, 2007, shall
adopt an iniiial progran of projects to be.funded from the account. This
program may be updated every two veors in conjunction with tlte bieinial
process for adoption of the state transportation inproventent progronl
plo'suant to guidelines adopted by the comlission. The inclusion of ct
project in the progrant shall be based on a denrcnstration that the project
nteets all of tlrcfollowing criteria;
(A) Is a high-priority project in the cotidor as denronstrated by
either of the following: (i.1 its inclusion in the list of nominated projects
by both the department pursltant to paragraph (3) and the regional
tronsportation planning ct4enc), or counl.t' lronspot'totion connission or
authority, pursuant to paragraph (4); or (ii) if needed to.fully.fund the
project, the identifcation and conmitnent ofsupplententalfunding to the
proj ect fiom oth er s ta te, loc a l, o r fe de rul.fund s.
(B) Can commence constntction or implententation no later than
December 31,2012.
(C) hnprotes,nobili4) in a high-congestion corridor by inrprot,irtg.
travel times or.reducing the number of daily vehicle hours of delay,
hnproves the connectivi\, of the state highwq, s),stem between rm'al,
subttrbtrn, and urban areas, or improves tlte operation or safety of a
highu,ay or road segment.
(D) Intproves access to jobs, housing, markets, and commerce.
(7) Ilthere competing projects oJfer sinilar niobility intprovenlents to
a specifc corridor, the contmission shall consider additianal benefts r&en
'determining which project shalt be inclutlecl in the program for functing.
These benefts sltall include. but are not limited to, lltefollowing;
(A) A fnding that the project provides quantiJiable air quality
beneJits.
(B) A Jtnding that the project substantialb, increases the safeiy for
!r'ayelers in the con'iclor.
(8) In adopting a program for ftinding pursuant to this subdivision,
the comnission shall nake a.finding that the program is (i) geographicalllt
baluncecl, .cottsistent A,ith the geographic split for fmding described
in Section 188 of the Streets and Highwav,s Code; (ii) provides mobility
improvenenls in highll, travelecl or highly congested corridors in all
regions of California; and (iii) targets bond proceeds in a uanner that
provides the increment of.funding necessary, u,hen combined with other
state, Iocal or.federalfunds, to provide the mobility beneft in the earliest
poss i b I e t i nt cJi'a nr e.
(9) The conmtission shall include in its annual report to the
Legislature, required b), Seclion 14535, a sununarlt ofits activities related
to the ddministration of tltis program. The sunutmry should, at a minin?um,
inclutle a clescriptiort and the locnliott of the projects contained in the
progran, the unutunt offttnds allocated to each project, the status ofeach
project, unt{ a tlescription oJ'the nrobility intprovelrcnts the program is
achieving.
(b) One billion dollars ($1,000,000,000) slmll be made available,
upon appropriation in the anrunl Buclget Bill by the Legislature, to
the departntent for intproventents t(; State Route 99. Funds nny be
userl for sc4fety, opst"617lsnal enhancentents, rellabilitation, or capacit),
intproventents necessory to intprove the State RoLrte 99 corridor traversing
approiimately 400 ntiles oJ the central valley ofthis state.
(c) Three billion one hLmdred million dollars ($3,100,000,000)
shall be deposited in the Calfornia Ports InfrastrLtctu'e, Secw'ity, and
lir Qtrctlitl, Innproventent Account, which is herebl, createtl in the fund.
The ntoney in tlte account sholl be available, upon oppropriation b)t the
Legislatu.re cmd suQjecl to suclt conditions and criteria as the Legi;lature
nrcty provide b), statute, as follows:
(1) (A) Two billion dollars ($2,000,000,000) shall be transkrred
to the Trade Corridors Improvenrent Fund, which is hereby created. The
money iil lhis ftutd shall be available, upon appropriation in the annual
Budget Bill by the Legislature and subject to such conditions and criteria
as llte Legislattrre nray provide by statute, for allocation by the California
Trotlsportotion Contntission for infrastructure_ improvements along
federally designated "T'ade Corridors of National Signifcance" in this
state or along other cotidot's tvithin this state thut have a high volume
ql'rt"eight tnovement, as determined b), tlte comnission. In determining'
projects eligible for firnding. the commission shall consult the trade
inft'estructL{re and goods nrovemenl plan subm|tted to the commission
b)' the Secretai'), of Business, Tt'ansportation ond Housing and the
Secretary for Environmental Protection. No moneys shall be allocated
fom this Jilnd until the report is subnitted to the contt?ission for its
consideration, provided the report is slrbmitted no later than January, l,
2007. The commissiott shall also consult trade infrastruittre and goods
movement plcms adopted b.v regional transportotion planning dgencies,
adopted regional lransportation plans required bJ, tlotu and federal law,
and the stateu,ide port naster plon prepared b), the California Marine
and htternrorlctl Tronspoftatiotl S),stent Advisory Council (Cal-MITSAC)
pursuant to Section 1760 of the Harbors and Navigation Code, when
determining eligible projects for funding. Eligible projects for these.funds
include, but are not lintited to, all ofthefdllou,ing:
(i) Highway copacitj, intprovements and operational improvements
to nrcre effcientb) dcconnlodote the novetnent offi'eight, particularlyfor
ingress ancl egress to ancl frotrt tlle state's seapofts, ittcluding navigable
,inlancl u,oterwalts used to transportft'eigltt betv'een seopot'ts, Iand ports of
entr),, ond oirports, {u1d to relieve trcffic (oilgestion along major trade or
.goods m oventett t corri dors.
(ii) Freight rail $)sten improvements to enhance the ability to move
goods front ,seaports, lancl ports of enlry, antl airports to warehousing and
distribution centers tltroughout CaliJbrnia, including projects tlwt separate
rail lines ft'on highu,ay or local road trofric, intprove fi'eight rail mobility
tltrouglt mountainous regions, relocate rail su,itching yards, and other
* * * Text of Proposed Laws I 1 15
TEXT OF PROPOSED IAWS * * *
projects that iiltprove the efrtciency and capaciq, of.the railfreight system.
(ii, Projects to enhance the capacity and elfciency of ports.
(iv) Truck cotidor improvements, including dedicated truck
facilities or truck toll facilities.
, (v) Border access improvements that enhance goods ntovement
betu,een Calfornia and Mexico and that mciximize the state's ability to
access coordinoted border inft'astructtu'e fttnds made available to the
state byfederal law.
(vi) Surface transportation improvements tofacilitate the movement
ofgoods to andfrom the state's airports.
(B) The commission shall allocate funds Jbr trade infrastructure
improvements from the account in a manner that (i) addresses the state's
most Lu"gent needs, (ii) balances the demands ofvcirious ports (between
large and small pofis, as u,ell as between.seaports, airpolts, and land
ports ofentry), (iii) provides reasonable geographic balance between the
st.tte's regions, and (iv) places emphasis on projects that improve trade
corridor mobility while leducing emissions ofdiesel particulate and otlier
pollutant emissions. In addition, the commission shall also consider the
fo llov, ing facto rs whe n allo c at ing t h e s e fun d s :
(i) "l/elocity," which means the speed by which large cargo would'
travelfrom the port througlt.the distribution system.
(ii) "Throughptr4" which means the volume of cirgo that would
ntove.front the port through the distribution system.
(iii) "Reliability," which means a reasonably consistent and
predictable amotrnt of lime for cargo to trcivel from one point to another
on any given day or at any given time in Calfornia.
(it) "Congestion reduction," which nteans the reduction in
r(cttrrenl daily hours ofdelay to be achieved.
(C) The commission shall allocate ftmds made available by this
paragraph to projects that have identifed and committed supplemental
fundingfront appropriate local,federal or private sources. The contmission
shall deterntine the appropriate amount of sttpplemental funding each
project shottld have to be eligible for moneys from this fund based on
a proJectby-project review and an assessment of the project's beneft
to the state and the program. Except for border access improvements
de.scriberl in clause (v) of subparugroph (A). irnprovementslunded with
moneys from this fund shall have strpplemental funding that is at least
equal to the amount of the contribution from the fund. The commission
ntay give priority for functing to projects with higher levels of committed
s up p I e m e nt a I .fim d in g.
(D) The commission shall include in its annual report .to the
Legislature, required by Section 14535, a summary ofits activities related
to the administration o.f this piogram. The slmtmary should, at a minimum,
. include a description and the location of the projects contained in the
program, the amount offitnds allocated to each project, the status of each
project, and a description of the mobility and air quality improvements
the program is achieving.
(2) one billion doltars (Sl,ooo,ooo,o0o; shull be made available,
upon appropriation by the Legislanre and subject to sttch conditions and
criteria contained in a statute enacted by the Legislattre, to the State Air
Resotu'ces Board.for emission reductions, not otherwise required by law
or regttlation, from activities related to the movement offreight along
California's trade corridors. Funds made available by this paiagraph
are intended to supplement existing funds used to f.nance strategies and
ptrblic beneft projects that reduce enissions and impro.ve air qualit), in
trade corridors contmencing at the state's airports, seaports, and land
ports of entry.
(3) One hundred ntillion dollars (5100,000,000) shall be available,
upon appropriation by the Legislature. to the Offce of Emergency
Services to be allocated, as grants, for port, halbor, and ferry terntinal
seclffity improventents. Eligible applicants shall be publicly owned
ports, harbors, and.fenyboat and ferry terminal operqtors, which may
submit applications.for proiects that incfude, but are not limited to, the
follou,ing:
(A) Video surveillance equipntent.
(B) Explosives detection technology,.including, but not limited to,
X-ray rtsv1a.t.
. (C) Cargo scunners.
(D) Raclicttion monitors.
' (E) Thermal protective equipment.
. (F) Site identffication instrunrents capable ofproviding afingerprint
for a broad inventory ofchemical agents.
(G) Other devices iapable ofdetectingweapons ofmass destruction
using chemical, biological, br other similar sttbstances.
. (H) Other security equipment to assist in any ofthefollowing:
(i) Screening ofincoming vessels. trucks, and inconing or outbound
co1 8o.
(ii) Monitoring the physical perimeters of harbors, ports, and ferry
terminals.
(iii) Providing or ougmentint onsite emergency response
capability.
(l) Overweight cargo detection equipment, including, but not
limited to, intermodal crane scales and trtrck weight scales.
(J) Developing disaster preparedness or eitergency response
plans.
The Offce ofEmergency Services shall report to the Legislatttre on
March I of each year on the manner in which the funds available pursuant
to.this parqgraph were expendedfor thatfiscal year.
@) ruo hundred million dollars ($200,000,000) shall be available,
upon appropriation by the Legislature, for schoolbtts retroft and
replacernent to reduce air pollution and to reduce children's exposure to
diesel exhaust.
(e) Two billion dollars ($2,000,000,000) shall be civailable for
projects in the state transportation improvement program, to augmentfunds
otherwise availablefor this purposefrom other sources. Thefunds provided
by this subdivision shall be deposited in tbe Transportation Facilities
Aceount which is herebl, created in the fund, and shall be available, upon
appropriation by the Legislaturb, to the Departmeint ofTransportation, as
allocated by the California Transportation Commission in the same manner
as funds allocated for those projects under existing law.
(f) (1) Four billion dollars ($4,000,000,000) shall be deposited
in the Public Transportation Modernization, Irnprovement, and Service
Enhancement Account, which is hereby created in thefund. Funds in the
account shall be made available, upon appropriation by 1hs Legislature,
to the Department of Transportation for intercity rail projects and to
commuter or urban rail operators, b.us operators, waterborne transit
opetators, and other ftansit operators in California for rehabilitation,
safety or modelnization improvements, capital service enhancements ot
expansions, new capital projects, bus rapid transit implovements, or for
rolling stoclc procurement, rehabilitation, or replacement.
(2) Of the funds made available in paragraph (1), Jbur hundred
million dollars ($400,000,000) shall be available, upon appropriation by
the Legislature, to the departmentfor intercity rail improvements, ofwhich
one hundred twenty-five million dollars ($125,000,000) shall be usedfor
the procurement of additional lntercity railcars and locomotives.
(3) Of the fimds remaining after the allocations in paragraph (2),
50 percent shall be distributed to the Controller, for allocation to eligible
agencies using theforntula in Section 99j14 of the Public Utilities Code,
and 50 percent shall..be distributed to the Controller, for allocation.to
eligible agencies using theformula in Section 99313 ofthe Public Utilities
Code, subject to the provisions governing funds allocated under those
sections.
(g) One billion dollars ($1,000,000,000) shall be deposited in the
State-Local Partnership Program Account, which is hereby created in the
fund. Thefunds shall be available, upon appropriation by the Legislature
and srtbject to such conditions and criteria as the Legislature'may provide
by stahfte, for allocation by the California Transportation Commission
over afive-year period to eligible transportation projects.nominated by an
applicant trcnsportation agency. A dollar for dollar match of local funds
shall be required for an applicant transportolion agency to receive st(tte
funds trnder this program.
(h) One billibn dollars ($1,000,000,000) shall be clepositecl in lhe
Transit System Safety, Security, and Disaster Response Account, which is
hereby created in thefund. Funds in the account shall be ntade available,
upon appropriation by the Legislature and subject to such conditions and
criteria as the Legislature may provide by statute, for capital proiects
that provide increased protection against a security and safety threat,
andfor capital expenditures to increase the capacity oftransit operators,
including waterborne transit operators, to develop disaster response
1 16 I Text of Proposed Laws * * *
(PROPOSITION 1B CONTINUED)* * * TEXT OF PROPOSED IAWS
tronsportation systens that can nlove people, goods, and ernergency
personnel and equipment in the a"ftermath of a disaster impairing the
mobility of goods, people, and equipment.
(i) One hundred twenty-fve million dollars ($125,000,000) shall
be deposited in the Local Bridge Seismic Retloft Account, which is
hereby created in thefund. Thefunds in the account shqll be used,.upon'
appropriation by the Legislature. to provide the 11.5 percent required
match for federal Highway Br idge Replacement and Repairfunds available
to the stetefor seisntic work on local bridges, ramps, and overpasses, as
identifed by the Department of Transportation.
0 (1) ruo hundred ffty million dollars ($250,000,000) shall be
deposited in the Highway-Railroad Crossing Safety Account, which is
herebl, created in the.fund. Funds in the account shall be available, upon
appropriation by the Legislature, to the Department of Transportation for
the completion of high-priority grade separdtion and railroad crossing
safety improvements. Funds in the account shall be made available for
allocation pursuant to the process established in Chapter 10 (comnencing
with Section 2450) ofDivision 3 ofthe Streets and Highways Code, except
that a dollar for dollar match of nonstate funds shall be provided for each
project, and the limitation on maximton project cost in subdivision (g) of
Section 2454 ofthe Streets and Highways Code shall not be applicable to
projects funded with these funds.
(2) Notwithstanding the funding allocation process described in
paragraph (1), in consultation with the department and the Public Utilities
Commission, the Califurnia Transportation Commission shall allocate
one hrmdred million dollars ($100,000,000) ofthefttnds in the dccount to
high-priority railroad crossing improvements, including grade separation
projects, that are not part of the process established in Chapter 10
(commencing with Section 2450) of Division 3 of the Streets and Highwctys
Code. The allocation of funds tmder this paragraph shall be ntade in
consultation and coordination with the High-Speed Rail Authority created
pursuant to Division 19.5 (commencing with Section 185000) of the Public
Utilities Code.
(k) (1) Seven httndred fif4t million dollars (8750,000,000) shall
be deposited in the Highway Safety, Rehabilitation, and Preservation
Account, which is hereby created in thefund. Funds in the aciount shall be
available, upon appropriation by the Legislature, to the.Department of
Transportation, as allocated by the California Transportation Commission,
for the purposes ofthe state highway operation and proiection program as
described in Section 14526.5
(2) The department shall develcip a program.foi distribution oftwo
hundred andffty million dollars ($250,000,000) from thefunds identified
in paragraph (l) to fund trffic light synchroitization projects or ether
technology-based intprovements to improve safety, operations and the
effective capdcity of local streets and roads.
(l) (1) fwo billion dollars ($2,000,000,000) shall be deposited in
the Local Slreets and Road Improvement, Congestion Relief, and Trffic
Safety Accottnt of 2006, which is hereby created in the fund. The proceeds
ofbonds deposited into that account shall be available. upon appropriation
by the Legislature, for the purposes specifed in this subelivision to the
Controller for admipistration and allocation in thefscal year in which the
bonds are isstted and sold, including any inlerest ar other return earned on
the investment ofthose moneys, in the following monner:
(A) Frfty percent to the counties, including a city and county, in
ac c o rdance with the fo llowing for mul as :
(i) Seventy-fve percent ofthefttnds payable under this subparagraph
shall be apportioned among the counties in the proportion that the number
offee-paid and exempt vehicles that are registered in the county bears to
the number offee-paid and exentpt vehiicles registered in the state.
(ii) Twenty-fve percent ofthefunds payable under this subparagraph
shall be apportioned antong the counties in the proportion that the number
of miles of maintained county roads in each cottnty bears to the total
number ofmiles ofmaintained counqt roads in the state. For the purposes
ofapportioningfunds under this clause, any roads within the bottndaries
of a city and county that are not state highways shall be deemed to be
county roads.
(B) Ftfty percent to the cities, including a city and county,
apportioned among the cities in the proportion that the total population of
the city bears to the total pbp.ilation of all the cities in the state, provided,
however, that the Controller sholl allocate a minimum offour hunclred
tltousand dollars ($400,000) to eacl't cit1t, pur'sLtant to this subparagraph.
(2) Funds received under this subdivision shall be deposited asfollows
in order to avoid the commingling ofthosefunds with other localfunds:
(A) In the case of a city, int,o the city accottnt that is designated for
the receipt ofstatefunds allocatedfor local streets and roads.
(B) In the case ofan eligible county, into the ciunty roadfund.
(C) In the case of a city dnd county, into a local account that is
designated for the receipt of state funds allocated for local streets and
roads.
(3) For the purpose ol allocating firnds uncter this subtlivision
to cities and a city and cottnty, the Contoller shall use the most recent
population estimates prepared by the Demographic Research tJnit ofthe
Department ofFinance. For o city that incorporate'd aftet January 1, 1998,
that does not appear on the most recent popuk)tion estinrutes prepared by
the Demographic Research Unit, the Controller shall use the population
determinedfor that city under Section 11005.3 ofthe.Revenue and Taxafion
Code.
(4) Funds apportioned to a cily, cbunty, or city and county under this
subdivision shall be usedfor improvements to transpot'tationfacilities that
will assist in reducing local trffic congestion and further deterioration,
improving trfficfows, or increcising trffic safety that may include, but
not be limitid to, street and highu,ay pavemellt maintenance, rehabilitation,
installation, construction and reconstnrction of necessary associated
facilities such as drainage and traffic control devices, or the maintenance,
rehabilitation, installation, construction and reconstrttctibn offacilities
that expand ridership on transit systems, s(tfety projects to reduce
fatalities, or as a local match to obtain state or federal transportation
funds for sim i lar pu rposes.
(5) At the conclusion ofeachfscal year duringwhich a city or county
expends the funds it has received under this subdivision, the Controller
may verify the city'S or county's compliance with paragraph (4). Any city
or county that has not complied with paragraph (4) shall reimburse the
state for the funds it received during that fscal year. Any funds withheld
or returned as a result of a failure.to comply with paragraph (4) shall
be reallocqted to the other counties and cities whose expenditures are in
compliance.
Article 3. Fiscal Provisions
8879.25. Bonds in the total amouttt ofnineteen billion nine hundred
tt4,enty-jfrve million dollars ($19,925,000,000), exclusive of refunding
boncls, or so much thereof as is necessary. are hereby outhorized to be
issued and sold for carrying out the purposes expressed in this chapter
and to reintburse the General Obligation Bond Expense Revolving Fund
plrrsuant to Section 16724.5. All bonds herein authorized which have
been duly sold and delivered as provided herein shall constitute ualid and
legally binding general obligations ofthe state, and thefullfaith and crbdit
of the stete is hereby pledged for the punctual payment of both principal
and interesl thereof.
8879.26. The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State General
Obligation Bond Law (Chapter 4 (commencingwith Section 16720) of Partj of Division 4), except subdivision (a) of Section 16727 to the extent that
sttbdivision is inconsistent with this chapter, and all ofthe other provisions
of that law as amended from time to time apply to the bonds qnd to this
chapter and are hereby incorporated in this chapter as though set forth in
fttll in this chapter.
8879.27. (a) Solelyfor the pm"pose o.fauthoriVing the issttance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authcirized by this chapter, the Highway Safety, Trffic Reduction, Air"
Quality, and Port Security Comnittee is hereby created. For the purposes
of this chapter, the Highway Safety, Trffic Reduction, Air" Quality, and
Port Security Contmittee is "thexomntittee" as that term is Ltsed in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the Controller, the Director ofFinance, and the Secretary ofthe Business,
Transportation and Hottsing Agency, or a desig4ated representative of
each of those fficials. The Treasurer shall serve as ihe chairperson of the
committee. A nmjority of the committee may actfor the committee.
(b) The comnittee may adopt guidelines establishing requirements
for administration of its financing progrants to the extent necessory to
..protect the validity of, and tax exemption.for, interest on the bonds. The
guidelines shall not constitute rules, regulations, orclers, or;tandards of
general applicatiott.
* * *Text of Proposed Laws I 1 17
TEXT OF PROPOSED LAWS * * *
(c) For tlte purposes of the State General Obligation Bond Law, cutlt
department reiceiving en allocation pu'suant to this chapter is designated
to be the " board."
8879.28. Upon request of the board stating that funds are neetted
for purposes of this chapter, the connittee shall determine whether or
not it is necessory or desirable to issue bonds authorized pttrsuant to this
chapter in order to carry out the actions specifed in Section 8879.23, and,
ifso, the amount o.fbonds to be issued ancl solcl. Successive issues ofbonds
may be author,ized and sold to cerry oltt those actions progressi.vely, and
are not required to be sold at itry one time. Bonds nta), bear interest sLrbject
tofederal incoire tax.
8879.29. There shall be collected annually, in the sante ntanner and
at the same time as other stete rcvenue is collected, a sutl,of money in
addition to the ordinary revenues qfthe state, stfficient to pay the principal
of, and interest on, the bonds as provided herein, and all oJfcers reQuired
by law to perform any duty in regard to the collectiotts ofstate revenues
shall collect thot o(lditionol sun.
8879.30. Notv)ithstanding Section 13340, there is herebl,
appropriatedfrom the General Fund in the State T'easn'1t,Jbr the purposes
oJ-this chapter, an anount that.v,ill eqttal the total of thefollowing:
(a) The swn anrutally nvcesson) to pa)t the principat of, and interest
on, bonds issued and sold pursuant to this chaprer, as tlte principal and
interest become due and payable
(b) The iunt which is necessary to carry out Section 8879.32,
appropriated .without reEard to fscal years.
8879.31. The board moy request lhe Pooled Mone1, Investntent
Board to make a loan from the Poolecl Money Investment Account, in
accordance with Section 16312, for purposes ofthis chapter. The amount
of the request shall not exceed the amount of the unsold bonds u,hich
the committee has, by resohrtion, autholized to be sold for the purpose
ofthis chapter, less aiy amount withdrawn pursuant to Section 8879.32.
The board shall execute any doctrntents os required by the Pooled Money
Investment Board to obtain and repay the loan. Any antottnl loaned shall
be deposited in thefirnd to be allocated in accordance with this chapter.
8879.32. For the purpose ofcarrying out this chapter, the Director of
Finance may, by executive order, authorize the witlxdlawalfom the General
Fund ofony amount or amounts not to exceed the amount ofthe tmsold bonds
which the committee has, b)t resolution, (iuthorized to be soldfor the pttrpose
ofcarrying out this chapter. Any annunts withdrawn sholl be depositecl in
the Highway Safety, Trffic Reduction, Air Quality, and Port Seadty Fund
of 2006. Any money made available under this section shall be returned to
the General Fund, plus the interest that the amounls would have earned in
the Pooled.Monel) Investment Account,frotn money received.fi'ont the sale of
bonds which would otherwise be deposited in that fund.
8879.33. The bonds nta1, be re.fundecl in accordonce with Article 6
(comntencingwith Section 16780) ofthe State General Obligation Bond Law.
Approval by the electors ofthis act shall constitute upproval dfary refunding
bonds issued pursuant to the State General Obligation Bond Lau,.
'8879.34. Notwithstanding'any provisions in the State General
Obligation Bond Law, the maximum matlu'ity of any bonds atnhorized by
this chapter shall not exceed 30 l,earsJi'om the date ofeaclt respective series.
The matttrity o.feach series shall be calculatedfront the date ofeach series.
8879.35. The Legislature herebyfnds and tleclares thctt, inasmuch
as the proceedsfrom the sale ofbonds authorized by this chapter cu'e nol
"proceeds oftaxes" as that term is used in Article XIII B oftlte California
Constitution, the disbursement of these proceeds is not subject to the
limitations imposed by that article.
8879.36. Notwithstanding any provision of the State General
Obligation Bond Law witlt regard to the proceeds from tlte sale of bonds
authorized by this chapter lhat are strbject to in.vestment under Article 4
(contni.encing with Section 16470) oJ'Chapter 3 oJ'Part 2 of Division 4,
the Treasurer may maintaiil a separute account for investment earnings,
order the payment ofthose earnings to comply lt,itl1 any rebate requirement
applicable under federal law, and ntay otlterwise direct tlte use and
intestment of those proceeds so as to ntaintain the tax-exentpt statlls oJ
those bonds and to obtain any other advantage underfederal law on behalf
ofthertrnds of this state.
8879.37. All money derivedfrom premium and acu'ued inteyest on
bonds sold ptu'suant to this chapter sholl be trans.ferred to the General
Fund as a credit to expendituresfot'boncl interest.
PROPOSITION 1C
This law proposed by Senate Bill 1689 of the 2005-2006 Regular
Session (Chapter 27, Statutes of 2006) is subrnitted to the people
in accordance with rhe ptovisions of Article XVI of the California
Constitution.
This proposed law adds sections to the Health and Safety Code;
tlrerefore, new provisions propoSed to be added are printed in italic tvpe to
indicate that they are new.
PROPOSED LAW
SEC. 2. Part 12 (commencing with Section 53540) is added to
Division 3l ofthe Health and Safety Code, to read:
PART ]2. HOUSING AND EMERGENCY SHELT:ER
TRUST FUND ACT OF 2006
Cartprnn l. GnumtL Pnowstoys
53540. (a) This part shall be known as the Housing and Enrcrgency
Shelter T'ust Ftmd Act of 2006.
(b) This part shall only beconte operative upon adoption by the
voters ot tlie November 7, 2006, stateu'ide general electioh.
53541. As used in this part, tlte.following terms have thefollowing'
meanings:
(a) "Board" nteans the Departntent.ctf Hdusing ancl Contmttnity.
Development for programs adntinisterecl by tlte departntent, and the
California Housing Finance Agency for programs administered b), the
oSency.
(b) "Committee" nleans the Housing Finance Conntittee created
pursuont to Sectibn 53524 and continued in existence pLu'slrant to Section
53548.
'(c) "Ftmd" means the Housing and Entergency Shelter Trust Funcl
created ptrrsttant to Section 53545.
Caeprcn 2. Houstuc AND EMERGENCr SHELTER
Tnusr Fuwo op 2006 ayo Pnocndu
53545. The Housing and Entergencv Shelter Trust Fund of 2006
is ltereby created in the State TreasLu'y. The Legislattu'e intends that the
proceeds ofbonds deposited in the.fimd shall be ttsed tofund the housing-
relatecl progratns described in this chapter over the course of lhe next
clecade. The proceeds ofbonds issued ond sold pursuant to this poftfor
the pttrposes specified in this chapter shall be allocatecl in the following
fltQtlner:
kl (l) One billionfve hundrecl nillion dollars ($1,500,000,000) to
be deposited in the AfJbrdable Hotrsing Account, which is hereby created
in the fund. Notwithstanding Section 13340 of the Governntent Code, the
noney in the account shall be continuously appropriated in accordan.ce
tt'itlt thc folloivittg schedulc:
(A) (i) Three hundredJbrty-fve ntillion dollars ($345,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended.for
the Multifamibt Housing Program authorized b1, Chapter 6.7 (contmencing
with Sectiotr 50675) oJ'Part 2. The priorities specifid in Section 50675.13
shall appl1, to the expendihtre offunds pttrsuant to this claLtse.
(ii) Ftfty tttillion clollars ($50,000,000) shall ,be trans.lat'r'ed to the
Hottsing Rehabilitation Loan FLtnd to be expended under the Multifamily
Housing Progran authorizecl by Chapter 6.7 (comntencing with Section
50675) of Part 2 for housing meeting the defnitions in pat:agraphs (2)
and (3) ofsubdivision (e) ofSection 11139.3 ofthe Governntent Code.
The department ntay provide higher per-unit loan limits as necessil')) to
acltieve alfordable housing costs to the target population. Any funds not
encumbereclfor the purposes ofthis clause u,ithin 30 ntonths ofavoilability
shall revertfor general use in the Mttltifamily Housing Program.
(B) One hundred ninety-Jive million dollars ($195,000,000) shall
be transferred to the Housing Rbhabilitation Loon Funcl to be expended
for the Multifontily Housing Program authorizecl b), Chal:ter 6.7
1 18 I Text of Proposed Laws * * *
***TEXI OF PROPOSED LAWS
PROP OSITTON lC CONTINUED)
commencing trith se(rion 50675) of part 2. ro .be used for supportivc I.ini,tat.ions contained.in this section shall not appty to the appropriation
,i;:f,1",,;7,;i,,;iriiiiil.i;i:;i[*;;i,,!,::;';:V', ''
.'';',';nf;:",2!Ji,,u,,"'
n"':v rr'n'r tin'le t' inrc ""'""']:h"':il,;i!.
'"iupndbv''"'"'u"""',Oti{ir#'i;';;,,::l:,;,,/ffiifUf-,,
fi#fWfnmr{1f!.8sereciing projects sha, give priority to: ,nu iai,"irr"i.' ri" i7'!, *ai, thar'he conducted nt larer than o
(i) supportive ""*r"iJ''u"i"'le
with di'sabilitics who woukl frontvoterapprovalofthispart'
otherwise be at high ,r0""]' ,lir!,"rrrr* in",." the applicatiotts ' () In its annual reporr,to ihe Leeisloture' rhe Departr
governme.nts for operating s;titbsidies or services funding' fi j i,J, hunclred fftv. miltion doltars ($850.000'000) shall
years or longer' .,,: -,. )^tt^-. tc,t 15 000 000) slnlt be be rteposited in the Regional rlo.".','g; i.i"""'.',':)"-:;';;;';;l"iunt shaltc) onehuicrredthirty-fventiilioncroiars($135,000,000)srnrtbe
au arplori'rl"in'*f'fril"it"t,eto'"i'g' Hortsing' and lnJill Incentive
,::;;[T:;i:: il:[::!,:;:,::!"iii!'::"t'Ifru;t"'y'tii!#ii1:iiiii ,:rrf,l':rfr*;ft!;:lE!##{i!;:i:ii;ifi:""i,:"ii;i'
Siction 50517.5) of Patt 2 ^^A\ -t^.,u he rlrc folt r -.^)"::::#;,iiJa;'ii",l;'li:::,Y{:;;"ti.iii"T,''!,!il"'!;ll'i;, ";'';i';:,'::ilo"1')'u"n"u" gran'Is r'r capi'Iat 'u'tct.'
reta'ect 'o
inntl
'i:r#:;;I l";"":":J1":ii!#i,#;*it{"'::.::'":;i!*7;i3, ':""i';;';:::,:"",!'i;li::::i:ndred n'zittion ctottars ($200'000'000)
for construction mandgerl
';i";:;,';;;:jg;,;;;;T{i:;,,i",,;,,;;'o!!!f,;r^,u,,ransrerred withinntt';:i:;::i::,,",
inprovements retatert to inru deveropment
ntheSelf-HelpHo"'i'gr'l'lii'ii'l"i')ivi"'i"s0697't Theseltrndsshalt proiccts'
beavailablerctnecat6oiii"'iirtnLFinanceAgency'tobeexpended
' Q) rralficmitigution' .r.^,.._^,,,^t,ciufiilhousinpde
ti).ri,{,r, [,,,n"riied by chapter ll (conntencing^*^':n.i;i #':h"":r""";;n;, and other relored infll devclopment constslcttt wtttt '(Erutrv'
riai,'tii1;;;Ai':*f|":rt/:;t;tr;;*; ,;,;1,:i,;t; !:' i!,,:"i;;;iiilt;':;;:;:i!t!i!,,"* 000, sha t be dep's e'rl
';::x:r,z:r:":;*#::iliil;i:;;11':i:iii,Lxr:ff;:i, ';",:"ir:"!i-tr;*i:;:;';:ii'irr,::":';V't;'"::::"Ji::'::'
sha, be estabrisn"a,r rioiu;i or-"pp'-ra gy ",t,r rl"i"iJroin noi,r, "7 t,r,Jliv'"',ir-o",uiin rhefu.nd .F,tm.s
in rhe accoilnt shall be ava
Housing Funcl creoterl iy srrtii, 5,0697.t an^ ,nott L, nroinarc 7o' ti" '
'noi''i''r,.iitt"'tirre
may provide in statut?'
'ii"i";Z'' i"ti"bed in sibparagraph (D) ,qt)1 nn' 000) shatl Cu'tprnn i' Frsc'qt Pnovrsrous
':,':"ii;:;I^,;i;;yi{:;i,:';;'ll'":,1ffi"; &zlFii'li::!: ns46 Bonds in the relatan'1ount or'[n'o bittion eight Lun'rtredrr'lv
50860) of Part ,. o,rli'i'liit'i' "ui"^a""ap' the,DtrrPoies ser [orth in 'l')''",nr out rhc purposes exp
use in rhe calHome Program rc&'i 'f'ttt''ico"''"."'t':l;;li:,XUi;ri';;:':r:ii!:::,iir|';!'l:;i
0001 of the s'ag"' e|'i";'"2'i1oi' '*'"p' rhat any approl'riotions in thattt "' o4'oi'''''on 4)' e'tt'epr stbdiv
* * * Textof Proposed Laws I 1 19
TEXT OF PROPOSED LAWS***
D
E
. sale, pursuant to the State General Obligation Boncl Law, of the bondsauthorized by this parr. rhe Housing Fin"ii,li i,i,i',,",r) creutecl pttr.suantto Section 53524 is contintre.d i,
"?ir,",,i,""1).'i,i',ii,ii')lJ,if"*s of this pa,r,rhe Housihg Finance contnittee i"...ii,.)),,,,,ii,,"i\.ri.i,ln", terilt is used intlte State General Obligation Bond Law.
(b) The conmittee may aclopt gtridelitre.t estrrblishing reqttirenrcntslor adninistrarion of its financiig lrogrnni ,o"'iif,"".rt"nt necessar), toprotect rhe validity of aicl tax eimptir 7o,., ir,J"ri on the bonds. Theguidelines sha, not ionstitute ,ut"r,'ug,riot:io;;,;,";;;i,::r, ot: standards ofgeneral application and are^n.ot strbiect"ro ii,"i,", i.':'ir"ntnencing withsection.t t340) of porr t o1 Dirision"i oii,iiSra',,,'"'",)vernnrent cotte.(c) For rhe puroo.te.s of thc State C"r"n,t biiig",rion sond Lau,, theDepartuent of Housinv o,i co,uru,r)ii) ili,iili,2i,,i,,, rtesignared rhe" board " for progro *r"orl,i,i, ir tn, i.a t' in" Aapri i,nie-nt t,, an,t the Ca lilorn ial;'; #1, tr ",, e A ge n cf i' t n " " t o i l,t"'' ])tr ;,: ;;,:;,,,: a d nt i n i s r e re tt b1,
53549. upon request o.f the board stating thatfunds are neededforpurposes of this parr, the cornmittee.;hrtt;",;;r';;;:;1ri,",n", o, not it isnecessar! or desirable to issue bontli ,r,tho;;;;;;;;r;rt b this.part in.orddr to carry out the actions sp-ecifect * s""ii-""r. lJiji, and, tf so, theamount of bonds to be issueil anrt ,.rii. sr-,"*rrirZ"iriiil-oloona" roy tnaurhorized and sold ro cqt.rv ort mor"^o"iiol,ii p,:ririri,*,r, and are.not
;:1:';i0,,':"l""sotd
at anv ou" ti"' non'atr",'trif"ii'",i,",'st sltbiect to
53550. There shall be,c.ollected annualllt, ia the sane manner ancl
fr'!;::2,;:z:;;:,::::',:,u, t'eue,nre i' ".itii"i, ""',unt of none1, in
o r o n a i n r l,l,ii o;',; 1 ; ; ; ; : ::' ;X : ;::i i2 ::'f ":# :i r# :: :: ! ;;: i:,:by taw to perform anv ctutv in,.;g"r; ;;-;i; ""i""ii"rr, "lrtate revenuesshall collect thut addirionil strnt.
sisst Notwithstanding..sect,ion^r3340 of the Governnent Code,
i:':,: !::;!:,::':;:r';':::,',t'"'' rhe cenerat i,,n)'i,",i" s.to,o r,'ea.surv,"lbtlowiii;""""o vJ ttttr vutt' an anxount that u,ill equal tn" ntat ojii)
(a) The sun onnuallt.t.
on. bonds iss ued ancl roid'':.::o'l r.o po1.' r h e pri nci pu I of' attd i n re rest
i,,",",,i-i2"'i)';,:"";,)";rl;;i:.uant to this pttt't as the'principat ani .
- 53ss7. Notu,ithsta.n.ding an.. provision of the state Generalobtigation Bonct Law _i,n, ,"'goriL {n" i,#Ji"itt "* the sate of bondsauthorized by rhis parr,hn,,.1:.: r,,t\""i,r-irJ"i,,nunt rrd", Article 4(contnencins n,ith Section taqzy of 'Ciopt;;';';;';;,,
2 of Division 4 of
!1 1: i,,ifr!:,,',: :,i,! i : i l :! : l' i",ili [')
"'
* 7, 1, i n, o i,, o i u o,
"
p o, o i "' contply with anr, r"t o," ,!)!Mi' order
,the p.ayment of thos.e ,trri;;;;;
",nJ,.:i,iiiiiti,',i7;:;:#'i;;::;:Xi:;:^!::":,;!"":t!::::,"i::;;:i::1,rhe tax-exenpr starrrs of th,ose. t,i, ,ii'ii'"f ii,r.)ry o,n", advantagetrnderfedcrat !a* on bihatf o1 rh"lrrir'"i,iii1l,I',,, "
-uJJ8. Alr monev derive.d Ji.onr preri,,r, anc! accruecr inrerest onbonds sotd p,rsttunt i ,n,i,
"nnil",: ,ti;i;';',1,i ;;:k,.rett to the Genera!Fu n d a s a c rc d i t t o ex p e n d i r u re s'fo r. ul)' i i i,l"!,'.' "t.,
PROPOSITION 1D
This law proposed by Assembly Bill 127 olrhe 2005 .2006 RegularSession (Chaprer 35. Statutes .of
.2006)
i, .rU,_u"O to the people
EilrT,""',|;ffe with the provisions "i i.,ir"Tvi of the california
This proposed law
1d{s seoions to the Education Code; thereflore,
li:J,i:"i;::ilJ:oposed to be added '* p'i""ii" ,rri",rp"i"'i"ii*i.
PROPOSED LAW
sEC. r6. part 69 lcommencing with section 101000) is added to ttre,' Educalion Code. lo readj
PA RT 69, KINDERGA RTEN__UNI I/ERSITY PUB LIC ED UCATIONCILITIES BOND ACT OF 2006
Cnlprcn l. Geunner
101000. This. rnrr ,h,:! !: ktrown and nuy be cited as rheKindcrgurten (Jniveisity public Eclucario, ei,iti,ilJibrrct Acr of 2006.101001. The incornt
cotilor:ri'n riotur';;.r'i;;'1,'::"t:' o!: o: r.eference ro' anv.1-trovision of
",i';r;;t";;;;;rit;z:r:;;
thLt part inctudes att octs a-eiditorv thereif
101002. k) Bontls in,r,h.e^r3.ra! amotrnt of ten biilion four hundredsixreen niilion doilurs r$t0.4t6 ooo,iiili"r"l,'i|"ii,'i,|i,,,r" o,,,o,,nt ofont,relunding bonds issued in at()!059. rtr .r. mttah ,r-,.-^fjo-t'!on"e A'itlt Sections 101030, t0t03i. inh
f:::;!1i {,;;;;',;;:';;',i:;;f"::"i,,i,1'u'"ii,'!;"i?,":;::':::,::!;i:r,,i:,purt qnd to reinrburse the G.e^neral Ot tigatioi B;;;";;r"rr" ReiolvingFund pursuant to Section tozz<.s o1 ,ii'C';;;,;;;:t!*e. rhe bonds,when sotd. shat! be and constitt)te.;,rtid
"r; ;;';l;;s )ttisation of the'; : : : ;{ f,W ;'; : i ; !':,:l :,,
r!, t h ", ; ;;,; ; ; ;i' ii"ifo i",1 c o t,1,,,,,,,
",.h;i;;;;:i;;';;,#i;:j':;;,,,',::::,'{":::::;::r:: j["fr|{t;:;;;;
(b) Pursuant to this sec,tion,.th" n.norrr,lnr"-rr"'rii ,",, the bondsa u t, o r i z e d by t h e s n t e s
"
n n o t n r; 6ing inr" "' c
",iiri, t t ee e s ta b lis 11 e dby secrion t5e0e or rhe Hiptter Ettu;"|";.;'F";;;;,;;,i,,i')n"" committeeestablished purcuanr to Secii,,i,,"rn""",i,,.r;;;;;i;:"';.",;:::,1:;::'J1:::;;;H:"rr;:i?::f":;!t
Ca,qprm 2. Ktuoonc,tnrs; THRIIGH.I2ru Gneot
Article !. Kinclergarren Through l2th Gracte SchoolFacilities progrom priisions -
I0t0l0. The proceeds:{!::!: issuecl und sold pursuant to Arricle2 Tconnencins witi Section .tbt02q ,h;'ii ;;;;;t|,i"!a ,, rhe 200.6 stareScttoot Facitiries Ftrntt estub!i.rh."a i, rn, ini"'iiiiiiff,,ro"r rubdivision(rt) of Secrion t7070.40 and sha, b;;'"it;;;,;d'b;,,,1," s,o," AtlocationBoard pu.suant to this chapter.
10l0ll. All mone\,s
.depos.itetl in the 2006 State School FacilitiesFund.rbr the purposes or tni "nipt"'r'r"i'rtrii"rililit re to provide aidto school distt.icts, ,orri, ,
of erttrcatiin"oi',i'n'i,i,'1,i"'o'int,endettts of schools' u"1
"o'untv boo,'is
Facititie.s Act rf teel ,ch":;:.',:'!i',:i.Y'-'.!!!: !r,:l r. c,eeie schoot
oJ part t0), ,ir",:ja,,i',rK""irr':'l"l;!;'i:';i:ri;:rf:;;:,?: ,!:::i :ii,nto.ne1, aclt,anced or loaned b the 2006 State s,ch"ri"ilatrri", rund undir
(b) The sum which is necessary b can"), out Section 53553,approtrtriated without regunl totrr"ol y"i,r.ri. ' q' ') ut
. 53552. The l:oarcl nuS, t.etluest the pooled Monslt llys3,tltent Board. to make a toanfront tn" eoi"a uon"1,;;""r;;;:r;';::)",r,rt, i, o""ordan"nwith Section 16312 o.l.the Got ernnteit 9_t", yo, prilr^es oJ.thi.s part. Theantount ofthe request sha, nor .ex""na me a,niunioj{nJ )nsotd boncrs u,hickthe iommittee has. br re.to!t.tt,i..,,, nri,",,irii',.'it",ii,J rc, the purpose ofrhis pat.r, less any amount
^,irhrtro*r p,,,r,)ir,iriiil; fi553. Thc boarttshatl execute anv docuntents os. ,.eqtlired by tn" iiilit"U"r"y ltpestment
i: i;! ;:,::,! : ; "7,1,: ;?fl ! " r o o i e,, 1' ) i, o' ;,,, i"i iJ a', n
"
i L; ; ; ;;: ;: ; ;: ;
. _ srssi For the 0,,;,",:";o:::,:,1riiJ' !,,i ir",li ,a,,, the DirectoroJ Finance may"bv executive ordet" uirthirize the withrtt.awat f onr thcGeneral Fund ofanv anount ot.amounts r.ii
"ri"ri"rne amount oftheunsold bonds which'rhe contrni,ee.has. b), ,."*;;,;;;::,urihorize. ro be sotdfor the.pu,rpose of carrying our tni, p", | fi1. ))'i,,ri",^,li,na,r*n shall becteposired in the fitnd. Anvi,o,nl, na,te ;*';ii;;,i;;;;; lh'is secti,,,n sha!t bereturned to the General i;unct,.,plus the interest that the antounts vtoulti haveearned in the pooled Money tnvestnt?nt Accouttt, front nut.the sa!e of bonds which wiulrd othe,,: ,: ,r"L-""iiiir,i#,;;':oy,i:;i*oI r,,
,^^- t35t4. The boncls may^!3 r^e{undea ,, o""oraon"e witlt Article 6lcommencingwith Scction t6780) oI;he Stu,:" C";)ri iiiisrtion Bontl Law.Approval by the electors ofthis ac,inott
"orr,iui" rioi";i.Jarn, efunrtingbonds issued purstranr to the Sta," c;r;;;io;;;;;:;"i#o ,"*53555. Notwithstanr!i,ot'tis"ti", a'r;";';:;'i;:;"ff-..anv provisions in the state General
t, ,Ei, poi,, iiirr";.:; ;;;#;ii';::,!';l!i:;,"ir:fr:i! !;:!:r",:!!;::::I
)Tlil;"|!rlmaturity of each series ,nit:r"i)'",r",,,i,i"7 r,",, thi date of
53556. The Legislatt*e herebyfnds and declares that, inasmrrchas the proceeds front the r"t" of binir-)i,,n"i,r"iir"it,rs t)art at.e not"proceeds of taxes" as that tern is-ttse, i, ,lrlttiri-ii/ n ol.thn Cnlif.rrioConstitution. the disbursenter, oS tn"i 1r,,:oiiai',,i iJr strbiccr ro rhelinitqtions imposed by that article.
120 I Text of proposed laws * * *
PROPOSITI ON 1D CONTINUED)
***TEX[ OFP POSED LAWS
* * *Text of ProPosed Laws I 121
TEXT OF PROPO SEDLAWS***
that additional sum.
r0r025. Norwithstanding se.ion 13340 0f the Government code; ':;:!Xir:;!:j';:::::r',{;1::::';t,fii:!iljii:;::a,;:_:::,;:;:if:t:there ii herel
n, n
" r,, ri! ]tg ;;;' : ;:jo{::, :,:,0 : f::,u,
o,t p i, i i n, i
" ;,;i; ;; "; :;,,'tt\o*ng '
" : ":":"","""":
er' att omount that will equa! rhe totat of tie Ailicre 2. cariftrnia community Coilrege progmm provisions(a) The sum annually necessqrv lo nov the n,.;B^;-^t ^. - , .on' bonds issued,ana ttti p'rr*"rrii,[,1't'he principal of' qnd interest. . 10t033. @) o:?:_roi.f?ceeils of bonds issu.ecr and sord pursuantinterest become du" ona piyo:[1f,.-"' 'lw rrtts chapter' as rhe principal ancl t.o Ar.ricle s rcominmcilly,i,i .l:",i* ibiin. ii; rr. of one bi,ion five(b) The 'u*-r""nrroiy ,i "or, out section t0r028, ippropriato
hundred 'seven nillion doltrs!$t,sw.oob,6i'rilr:iail be deposited ii thewitho'ut'regard toTrca! .reo,is. uu' Section t01028, appropriated 2006 califtrnia io^*r.r.i,ry i"ti"c" i"iiii"ibiny nona Fund.for therotoza'
-ri" .staie,4tt;cotion Boarc!
1ay request.the poored Money i::'"::rntr,!;;:::i:rT!;:,::t;;,rc:;,ii!X7f,ia, ,nott o:" "l"i"'ii';::;;::l "-r::i.rr!=:J*];n;,'".piud M;,';";;;";,i;:;, . (!) 11" iu,po,'", of rhis articre inctude assisting in meeting theEwrr-M#WW
101027. Notwithstanding any orher"i*:.:;:::;:!i:,;;:,:n::;i:;:1,,,:,*iii".!,{{,,:::,I!if;;:!:; ;:,""::!;,:,::,"1i:,,f,r{,,,ii:rir:l;i iixmi#iilii,r:,;{,x:":lthar the inrerest
,o.n'rhe bondi-i )r"ui"a'j,counse I opinion to the effect workins tlrawing'7or:lo"rtrti"riitl;';;t:#:;;;3lp*.rniry
Co,eges.''!JrXi#!'#;i,it'idba"'is)o;";;;;;;;:;:n::f;"::;::;##li:i:
investment ""r;:::!:. .the investment of bo;td pro"n"i, ;;;':;;;'i;i; Anicte 3' Catiftr.nia connuniry colege Fiscdt provisions
tn" ,," oltio-s"';f:":;;::::"!;;lifrf;"1!i rreasu.rer mav use i, ai,l", 101034. (") orn) ,,r, ,-^,,-, ^,:'."","
'
pavmenr resuired underfectera! !a*o,,oi,";f.!!.1"0"'", iir"ii,"", "',il) tro !!,!!tf;rr{llr,o{o'':,'o!' amount of bonds auth.orized to be issuedtni in,"s,iL,i oni'u;;:;ir\:;;i,:;;:#"::! other action
.with respect b 0",a, i,' 'ff),ii';,;,:,:,:1!'"' .1...(commencing win seiiion";;;;;;;.
it;:fi:i:#{nl:f;,*lr;*;tl:,rStlXiii"{W;t,:#,#i,:#i;1ffi ##if#i{i#iin
"r,lllo"1"',"f'":,,X::,::,,";#{;i;;?;ir;:;ii,"l: ,;,:,;"jix ,r,i_1;;W,{;#:;/**nffi*W,
amount not to exceed the amount of t:hi"unsotd o.rir-',ili ilrLi"z'i the Governmenr codeauthorized bv the.state s"n'i'i-til,i'airli';:;ir": con*it)"e ;; ;":;i; vati.d and birdirg obtigoT!"
t'rai rnirtr'ii."ii'"i'u ilii|rrri}L"',
yi,'r''*iin{,ttl'""
''ili:f,,Ii,:i{;,"i,;l'
pry;yg;'y;",3;;i;;'lpir**ixrlir:'i;'irf,!'. returned to the (
ri, __:ii"!;:"f#1,i3;';#li#fti:":!iffiil, f#ti";,:f:;:#t0102s o'!,,::i:!-^o:l:sited in ttte zo!!,s.n.te schoot.Facititie, ';"ff;"r"i,ft[:rl::!';'.:l:cotion 1i,t"i,"[ml,iirt, o,a, thqt on or:i:l ;!"1';:::;':: t:ki;t:;^;n i:1j;'"t ,:*",, "'i,ii'i'""i oiis", i,i,iiJ"? ";2:;ffi:;:y:;rri;;{;iii::i,:il"i, niai,i, i; ,-n"
""-':;,;l;:u:;;;;,5;;;1,::ir;r;;;;;;,"rr*';*",
rtwi;;5i[irlmn,#ti#.f*rlii':;tri;:';:tr,# r:;:,:;';"::tr:"%:li[r:i:li ,;f: ;irz,xJ, ,",,i"" ",pr,)i)ii, )ii;t*a rv the appo,ionien,s :obligation Bond L.|w', /ryy'|t'tv ri"'iou"rr"t1,n"
",rr"1o, tl," irru'oni" 101034'5 @ ri" bords. outh)rrz"o ii ',i,,
chapter sha, be"t:;i';:;i;i:::2:l::!e;:;
";r,!:j::i,:rji:fli!i:X7'ii:i::
prepared "'""uii, isu"a,
"o,ra p"ii ',i*:i""*iJ) o, i-,,,"a i,,niin"i,",""iiir'i2,y,,11i","a i"h;;;;; r:;:i::;;;;;;;l;';;,,":,":;; iXl;f:;7:i3'':f;:,'::,::'ii".ir{:tr;i"T;::ii;*i:;i|#:Ijf,
:: *Jilii"l"o,'|,7 t"9"'o"'n n"'etv fuia' and (ytays that. inasmuch i ,n-"' ,.,l,iii*,7,'ii,ji,!,, .,,n rhis part. oppty io. ti"' oonds and to this'i!i':,:,1i,',i/tiir::;:!::;::: i'i;,!,!!ifil!{ff':#1,fj# ;w;iiii:;:ii:i!i"rp'ra,ed n,.,nii
"i.p,"i,,.., ,n.ugn;":;r.,ii
limitations imposed by that artic,". '-- r'"v.,
cutprm 3. c,tuponuu Couuuurry Cotttce Fecturrcs g-,#:l;'rrrl;;,";rrr*fg{,V!i;X:ll|ii!; f::#tiil
lrticle t' General (c) The proceeds of the.,bonds issued and sord pursuanr to this101032' {d !( 2006 carirornia community Corege Caoita, "!ffi';;;!;'::;;:!i:!f:i1yyy71|"iffi*"}uid',o,h"catiftrniaoutlay Bontd Fund is herebv "t,"iiJ,"i"iriii"i,"," Tr.easur), for deposit a,nd,their respectir" off-"nr^l.lnstriction;.; "r;t'r"irg';; ,ew campuses,
i{{:f:ilT il'" p'o"""ai ii;",:;;";;;;;;i sotd for the purpoies of facitities, asietforthi; ;il;:i:;,""i.'"o o'a i'i'-t'u'li i,a i,*^"s'*",i't
1b) rhe Higher.g!!:'.,,:, Facitities Finance Committee estabtished "r,"ul,!1,,!itor^l!:,|":rr!:,;,u;'tation
Facitities Finance committeb
.
pursua,nt to section 67353 is hn,"uy qu,iii,i,.;;;, ",";;;.;";;;;;,;:;;i:, i::",;:r;":!iiijii"",X:::,"r,:r:::::rf,l::fr:rffi:W:A:;:::n thts chapter that are "*pr"iity authoriii
l22l'Textof proposed laws* * *
(PROPOSITION 1D CONTINUED)* * * TEXT OF PROPOSED IAWS
by the Legislature in the annual Budget Act. Pursuant to that legislative
direction, the committee shall determine whether or not it is neceisary or
desirable to issue bonds authorized pursuant to this chapter in order to
carry out.the purposes described in this chapter and, ifso, the amouitt of
bonds to be issued and sold. Successive issues of bonds may be authorized
and sold to carry out those actions progressively, and it is not necessary
that all ofthe bonds authorized to be issued be sold at any one time.
101035.5. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, ih addition
to the ordinary revenues ofthe state, a sum in an amount required to pay
the principal of,'and interest on, the bonds each year. It is the duty of all
fficers charged by law with any duty in regard to the collection of the
revenue to do and perform each and every act which is necessary to collect
that additional sum.
101036. Notwithstanding Section 13340 of the Government Cocle,
there is hereby appropriated from the General Fund in the Stqte Treasury,
for the purposes of this chapter, an amount that will equal the total of the'fottowiig:-
(a) The sum annually necessary to pay the principal of, and interest
on, bonds issued and sold pursuant to this chapter, as the principal and
interest beiome due and payable
(b) The sum necessary to carry out Section 101037.5, appropriated
without regard to fscal years.
101036.5. The board, as defned in subdivision (b) of Section
101034.5, may request the Pooled Money Investment Board to make a loan
from the Pooled Money Investment Account or any other appro.ved form
ofinterimfinancing, in accordance with Section 16312 ofthe Government
Code, for the purpose of carcying out this chapter. The amount of the
request shall not exceed the amount ofthe unsold bonds that the committee,
by resolution, has authorized to be soldfor the purpose ofcarrying out this
chapter. The board, as defned in subdivision (b)'ofSection 101034.5, shall
execute any documents required by the Pooled Money Investment Board
to obtain and repay the loan. Any amounts loaned shall be deposited in the
fund to be allocated by the board in accordance with this chapter.
101037. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the eJfect
that the interest on the bonds is excluded from gross income for federal
tax purposes, subject to designated conditions, the Treasurer may maintain
separate accounts for the investment of'bond proceeds and .fot the
investment earnings on those proceeds. The Treasurer moyuse or direct
'the use ofthose proceeds or earnings to pay any rebate, penalty, or other
payment required under.federal law or tdke dny other action with respect to
the investment and use ofthose bond proceeds required or desirable under
federal law to maintain the tax-exempt status ofthose bonds and to obtain
any other advantage nnderfederal law on behalfofthefunds ofthis state.
101037.5. (a) For the purposes of carrying ou! this chap4er, the
Director of Finance may authorize the.withdrav)alfrom tl.te General Fund
ofan amount not to exceed the amount ofthe unsold bonds that have been
authorized by the Higher Education Facilities Finance Committee to be
sold for the purpose of carrying out this chapter. Any amounts withdrawn
shall be deposited in the 2006 Califurnia Community College Capital
Outlay Bond Fund consistent with this chapter. Any money made available
under this section shall be returned to the General Fund, plus an amount
equal to the interest that the money would have earned in the Pooled
Money Investment Account, from proceeds received from the sale of bonds
for the purpose of carrying out this chapter.
(b) Any request.forwarded to the Legislature and the Department
of Finance for funds from this bond issue for expenditure Jbr the purposes
descr'ibed in this chapter by the Califurnia Community Colleges shall bi
accompanied by the fve-year capital outlay plan that refects the needs
and priorities of the community college system and is prioritized on a
statewide basis. Requests shall include a schedule that prioritizes the
seismic retroftting needed to signifcantly reduce, in the judgment of the
particular college, seismic hazards in buildings identifed as high priority
by the college.
101038. All money deposited in the 2006 California Community
College Capital Outlay Bond Fund that is derived from premium and
accrued interest on bonds sold shall be.reserved in thefund and shall be
available for transfer to the General Fund as a credit to expenditures for
bond interest.
101039. The bonds may be refunded in accordance with Article 6
(commencing wilh Section 16780) of Chapter 4 of. Part 3 of Divisiort 4
of Title 2.of the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the voters of the state.for the' iss uance
ofthe bonds described in this chapter includes the approval ofthe issuance
of any bonds issued to refund any bonds originally issued under this
chapter or any previously issued refunding bonds.
I 0 1039.5. The Legislature herebyfnds and declares that, inasnurch
as the proceeds front the sale of bonds authorized by this chapter are not
"proceeds of taxes" as that term is used in Article XIII B o.f the Califurnia
Constitution, the disbursement of these proceeds is not subject to the
limitations imposed by that article.
Ca,sprnn 4. Ururonsrcv F,t:rLITIES
Article L General
101040. (a) The system ofpublic universities in this state inchtdes
the University of California, the Hastings College of the Law, und the
' California State University, and their respective off-campus centers.
(b) Th9 2006 University Capilal Outlay Bond Fund is hereby
' established in the State Treasury for deposit offunds from the proceeds oJ'
bonds issued and sold for the purposes of this chapter.
(c) The Higher'Education Fdcilities Finaftce Committee established
pursuant to Section 67353 is hereby authorized to create a debt or debts,
liability or lihbilities, of the State of California pursuant to this chapter
.for the purpose ofprovidingfunds to aid the University ofCalifornia, the
Hastings College of the Law, and the California State University.
Article 2. Program Provisions Applicable to the University o1
California and the Hastingi College of rhe Law
101041. (a) From the proceeds ofbonds issued and sold pursLtant
to Article 4 (commencingwith Section 101050), the sum ofeight hundred
ninety million dollars ($890,000,000) shall be deposited in the 2006
University Capital Outlay Bond Fund for the purposes of this article.
lVhen appropriated, these funds shall be available for expenditure.for the
purposes of this article.
(b) The purposes of this artible include assisting in meeting the
capital outlay financing needs of the University of Califomia and the
Hastings College of the Law.
(c) Ofthe amount made availableunder subdivision (a), the urnount
of two hundred million dollars ($200,000,000) shall be used for capital
improvements that expand.and enhance medical education progrants with
an emphasis on telemedicine aimed at developing high+ech approaches
to health care.
(d) Proceeds from the sale of bonds iss ued a nd sol d for the pn'poses
of this article may be used to fund construction on existing campuses,
including the consftuction of buildings and the acquisition oJ related
fxtures, consftuction of facilities thdt may be used by more than one
segment of public hi$her education (intersegmental), the renovation
and reconstruction of facilities, site acQuisition, the equipping of new,
renovated, or reconstr'ucted facilities, which equipment shall have an
averege useful life of l0 years; and to provide funds for the payment of
preconsiruction costs, including, but not limited to, preliminary platts
and working drawings for facilities of the University of Calfornia and the
Hastings Col[ege of the Law.
Article 3. Program Provisions Applicab"le' to the California State University
101042. (a) From the proceeds ofbonds issued and sold pursuant
to Article 4 (cb,mmencing with Section 101050), the sum of six. hutdred
ninety million doltars ($690,000,000) shall be deposited in the 2006
University Capital Outlay Bond Fund for the purposes oJ this article.
lLhen appropriated, thesefunds shall be avhilablefor expenditure.for the
purposes of this arlicle.
(b) The purposes of this article include assisting in meeting the
capital outlayfinancing needs of the California State Univercity.'
(c) Proceedsfrom the sale ofbonds issued and soldJbr the purposes
of this article may be used to fund construction on existing campuses,
including the construction of buildings and the acquisition qf related
* * *Text of Proposed laws I 123
E
TEXT OF PROPOSED LAWS * * *
D
fxtures, construction of facilities that may be used by more than one
segment of public higher education (intersegmental), the renovation
and reconstruction offacilities, site acquisition, th'e equipping of new,
renovated, or reconstructed facilities, which equipment shall have an
average useful life of l0 years; and to provide funds for the payment of
preconstruction costs, including, but not limited to, preliminary plans dnd
u,orking drawings for facilities of the Califurnia State University.
Article 4. University Fiscal Provisions
1 U 050. (a) Ofthe totat amount of bonds authorized to be issued and
soldpursuant to Chapter I (commencingwith Section 101000), bonds in the
amount ofone billionfive hundred eighty million dollars ($1,5B0,000,000),
not including the amount ofany refunding bonds issued in accordance with
Section 10t059, or so much thereofas is necessary, may be iisued and sold
to provide afund tg be usedfor carrying oltt the purposes expressed in this
chapter and to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The bonds,
when sold, shall be and constitute a valid and binding obligation of the
State ofCalifornia, and the fullfaith and credit ofthe State of California is
hereby pledged for the punctual payment of the principal of and interest
on, the bonds as the principal and interest become due and payable.
(b) h is the intent of the.Legislature that the University of California
and the California State University an4ually consider, as part oftheir annual
capital outlay planning piocess, ihe inclusion offacilities that may be used
by more than one segment ofpublic higher education (intersegmental), and,
that on or befor'e May 15 ofeach year, those entities report theirfindings to
the budget committees ofeach house ofthe Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finanbe Committee
established pursuant to Section 67353 at any different times necessary to
service expenditures required by the apportionments.
I 0 1 05 1 (a) The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code), and all of the
provisions ofthat law, except Section 16727 ofthe Government Code to the
extent that it conflicts with this part, apply to the bonds and to this chapter
and are hereby incorporated into this chapter as though set forth in full
within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
bach state agency. administering an appropriation of.the 2006 []niversity
Capital Outlay Bond Fund is designated as the "board" for projects
funded pursuant to this chapter.
(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the parpose offunding aid to the University
of California, the Hastings College of the Law, and the California State
University, for the construction on existing or new campuses, and their
respective off-caupus centers and joint use and intersegmental facilities,
as sel Iorlh in lhis chapter.
101052. The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance ofbonds
under this'chapter only to the extent necessary to fund the d.pportionments
for the purposes described in this chapter that are expressly authorized
by the Legislature in the annual Budget Act. Pursuant to that legiilative
direction, the committee shall determine whether or not it is necessdry or
desirable to issue bonds authorized pursuant to this. chapter in order to
carry out the purposes described in this chapter and, ifso, theamount of
bonds to be issued and sold. Successive issues of bonds may be authorized
and sold to carry out those actions progressively, and it is not necessary
that all of the bonds authorized to be issued be soki at any one time.
101053. There shall be collected each year and in the same manner
and at the sdme time qs other state revenue is eollected, in addition to
the ordinary revenues of the state, a sum in dn amount required to pay
the principal of and interest pn, the bonds each year. It is the duty ofall
fficers charged by law with any duty in regard to the collection of the
revenue to do and perform each and every act which is necessary to collect
that additional sum.
101054. Notwithstanding Section.13340 of the Government Code,
there is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, an omount that will equal the total of the
following:
. (a) The sum annually necessary to pay the principal of and interest
on, bonds issued and sold pursuant to this chapter, qs the principal and
interest become due and payable
(b) The ,u* n"""rro-ry to cafty out Section t01057, appropriated
without regard tofiscal years.
101055. The board, as defined in subdivision (b) ofSection 101051,
may request the Pooled Monby Investment Board to.mitke a loan from the
Pooled Money Investment Account or any other ppproved form of interim
financing, in accordance with Section 16312 of the Government Code,
for the purpose of carrying out this chapter. The amount of the request
shall not exceed the amount of the unsold bonds that the committee, by
iesolution, has authorized to be sold for the purpose of carrying out this
chapter. The board, as defned in subdivision (b) ofSection 101051, shall
execute any documents required by the Pooled Money Investment Board
to obtain and'repay the loan. Any amounts loaned shall be deposited in ihe
fund to be allocated by the board in accordance with this chapter.
101056. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the effect
that the interest on the bonds is excl,uded from gross income for federal
tax purposes, subject to designated conditions, the Treaiurer may maintain
sepalate accounts for the investment of bond proceeds and for the
investment earnings on those proceeds. The Treasurer mdy use or direct
the use of those proceeds or earnings to pay any rebate, penalty, or other
payment required underfederal law or take any other action with respect to
the investment and use of those bond proceeds required or desirable under
federal law to maintain the tax-exempt status of those bonds and to obtain
any other advantage under federal law on behalf of the funds of this state.
101057. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General Fund
of an amount not to exceed the amount of the unsold bonds that have
been authorized by the Higher Education Facilities Finance Committee
to. be sold for the purpose of caruying out this chapter. Any amounts
\eithdrawn shall be deposited in the 2006 University Capital Outlay Bond
Funcl consistent with this chapter. Any"money made available under this
section shall be returned to the General Fund, llus an amount equal to the
interest that the money would have earned in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the purpose of
carrying out this chapter.
(b) Any request forwarded to the Legislature and the Departmeni
of Finance for funds from this bond issue for expenditure for the purposes
described in this chopter by the University of California, the Hastings
College ofthe Law, or the California State University shall be accompanied
by the five-year capital outlay plan. Requests forwarded by a university
or college shall include a schedule that prioritizes the seismic retroftting
' needed to signifcantly yeduce, in the judgment of the particular university
or college, seismic hazards in buildings identified as high priority by the
universily or college.
101058. All money deposited in the 2006 University Capital Outlay
Bond Fund that is derived from premium and accrued interest on bonds
sold shall be reserved in the fund and shall be available for transfer td the
General Fund as a credit to expenditures'for bond interest.
, 101059. The bonds may be refunded in accordance with Article 6
(commencing with Sectioi 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the voters ofthe statefor the issuance
ofthe bonds described in this chapter includes the approval ofthe issuance
of any bonds issued to refund any bonds originally issued under this
chapter or any previously issued refunding bonds.
101060. The Legislature herebyfnds and declares that, inasrnuch
as thb proceeds from the sale of bonds authorized by this chapter are not
"proceeds of taxes" as that term is used in Article XIII B ofthe California
Constitution, the disbursement of these proceeds is not subject to the
limitatiois imposed by that article.
SEC. 20. (a) Up to twenty-one million dollars ($21,000,000)
of'any funds that are required to be made available for rehabilitation or
, construction ofjoint-use facilities for public schools and that result or are
derived fiom the sale ofbonds issued on or before January 1, 2006, shall be
124 I Text ol Proposed laws* * *
(PROPOSITION 1D CONTINUED)* * * TEXT OF PROPOSED LAWS
transferred to the State Allocation Bciard and may be apportioned by that
board for the purposes of Article 10.6 (commencing with Section 17077.40)
ofChapter 12.5 ofPart 10 ofthe Education Code.
(b) Any funds remaining after the transfer required under subdivision
(a) that conform to the description set forth in that subdivision shall be
transferrgd to the State Allocation Board and may be apportioned by that
board for any ofthe purposes of Chapter 12.5 (commencing with Section
17070.10) ofPart 10 ofthe Education Code.
PROPOSITION 1E
This 1aw proposed by Assembly Bill 140 ofthe 2005-2006 Regular
Session (Chapter 33, Statutes of 2006) is submitted to the people
in accordance with the provisions of Article XVI of the California
Constitution.
This proposed law adds sections to the Public Resources Code;
therefore, new provisions proposed to be added are printed in italic type to
indicate that they are new.
PROPOSED LAW
SECTION 1. Chapter 1.699 (commencing with Section 5096.800)
is added to Division 5 ofthe Public Resources Code, to read:
Cn,qprrn L699. Drs,ssrnn Pnmantoxnss.tuo
Frcoo PnnvsurroN BzND Acr oF 2006
Article l. General Provisions
5096.800. This chapter shall be known and may be cited as the
Disaster Preparedness and Flood Prevention Bond Act of 2006.
Article 2. Defnitions
5096. 805. Unless the context otherwise requires, the defnitions set
forth in this article govern the construction of this chapter.
(d) "Board" .means the Reclamation Board or successor entity.
(b) "Committee" means the Disaster Preparedness and Flood
Prevention Bond Finance Committee, created by Section 5096.957.
(c) "Delta" means the area of the Sacramento-San Joaquin Delta as
defined in Section 12220 ofthe Water Code.
(d) "Department" means the Department of llater Resources.
(e) "Facilities of the State Plan of Flood Contol " means the levees,
weirs, channels, and other features of the federal and state authorized
flood control facilities located in the Sacramento and San Joaquin River
drainage basin for which the board or the department has given the
assurences of nonfederql cooperation to the United States requiredfor the
project, and those facilities identified in Section 8361 of the l,Itatqr Code.
(fl "Fund" means the Disaster Preparedness and Flood Prevention
Bond Fund of2006, created by Section 5096.806.
(g) " Project levees"' means the levees thdt are part of the facilities of
the State PIan ofFlood Control.
(h) "Restoration" means the improvement of a physical structure or
facility and, in the casepfnatwdl system and landscapefeatures includes,
but is not limited to, a proje?t for the control of erosion, the control and
elimination of exotic species, including prescribed burning, fuel hazard
reduction, fencing out threats to existing or restored natural resources,
road elimination, and other plant and wildlife habitat improvement to
increase the natural system value of the property. A restoration project
shall include the planning, monitoring, and reporting necessary.fg ensure
successful implementation of the project objectives.
!!) "State General Obligation Bond Law" means the State General
Obllgalipn Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3lf Division 4 of Title 2 of the Government Code).
1j\ "Stot" Ptan of Flood Control" means the state antl federal
food..control works, lands, programs, plans, conditions,.and mode of
maintenanci and operations of the Sacramento River Flood Control
Project described in Section 8j50 of the ll/ater Code, and offiood control
projects in the Sacramento River and San Joaquin River watersheds
a\
authorized pursuant to Article 2 (commencing wilh Section 12648) of
Chapter 2 of Part 6 of Division 6 of the lilater Codefor which the board or
the department has provided the assurances ofnodederal cooperation to
the United States, which shall be updated by the department and compiled
into a single document entitled "The State Plan ofFlood Cohtrol." '
(k) "Urban area" means any contiguous area in which more than
10,000 residents are protected by project levees.
Article 3. Diqaster Prepdredness and Flood Prevention Bond
Fund of 2006
5096.806. The proceeds of bonds issued and solld pursuant to
th.is chapter shall be.deposited in the Disaster ,Preparedness and Flood
Prevention Bond Fund of 2006, which is hereby created.
Article 4. Disaster Preparedness and Flood Prevention Program
5096.820. (a) The sum of four billion ninety million dollars
($4,090,000,000) shall be availqble, updn appropriation therefor. for
disaster preparedness and fiood prevention projects pursuailt to this
article.
(b) In expendingfunds pursuant to this qrticle, the Governor shall
do all of thefollowing:
(1) Secure the maximum feasible dmounts of federal and local
matching funds to fund disaster preparedness and flood prevention
projects in order to ensure prudent and cost-effective use of these funds to
the extent that this does not prohibit timely implementation of this article.
(2) Prioritize project selection and project design to .achieve
maximum public benefts from the use of these funds.
'(3) In connection with the submission of the annual Governor's
Budget, submit an annual Bond Expenditure Diisaster Preparedness and
FloodPrevention Plan that describes in detail the proposed expenditures of
bondfunds, the amount offederal appropriations and localfunding obtained
to fund disaster preparedness andfiood prevention projects to match those
expenditurbs, and an investment strategy to meet longlermfiood protection
needs and minimize state taxpayer liabilities fromflooding.
5096.821. Three billion dollars 1$3,000,000,000) shall be available,
upon appropriation to the department, for the following purposes:
(a) lhe evaluation, repair, rehabilitaiion, reconstruction, or
replacement of levees, weirs, bypasses, and facilities of the State Plan of
Flood Control by all ofthefollowing actions:
(l) Repairing erosion sites and removing sedimentfrom channels or
bypasses.
(2) Evaluating and repairing levees and any other facilities of the
State Plon of Flood Conrrol.
(3) Implementing mitigation measures for a project undertaken
pursudnt to this subdivision. The department may fund participation in a
natural community conservation pldn pursuant to Chapter 10 (commencing
with Section 2800) of Division 3 of the Fish and Game Code to facilitate
projects authorized by this subdivision.
(b) Improving or addingfacilities to the State Plan of Flood Control
to increase levels offlood preventionfor urban areas, including all related
costs for mitigation and infrastructure relocation. Funds made available by
this subdivision may be expendedfor statefnancial participation infederal
and state authorizedfl.ood control projects, feasibility studies and design
of federal food damage reduction and related projects, and reservoir
reiperation and groundwater food storage ptojects. Not mo,re .than two
hundred million dollars ($200,000,000) may be expended on a single
project, exclu.ding authorizedfiood control improvements to Folsom Datn.
ft) @ fo reduce the risk ofleveefailure in the delta.
(2) The funds madd available for the purpose specifed in paragraph
(l) shall be expendedfor both ofthefollowing purposes:
(A) Local assistance under the delta levee maintenance subventions
program under Part 9 (commencing trith Section 12980) of Division 6 of
the lryater Code, as that part may be amended.
(B) Specialfood protection projects under Chapter 2 (commencing
with Section 12310) of Part 4.8 of Division 6 of the l(atei Code, as that
chapter may be amended.
5096.824. (a) Five hundred million dollars ($500,000,000) shall
E
tr
* * *Text of Proposed Laws I 125
TEXT OF PROPOSED IAWS * * *
be available, upon appropriation to thb departnent, for payment for the
state's share ofthe nonfederal costs, and related costs, offoocl control ahQ
flood prevention projects authorized under any of the following:
(1) The.State Water Resources Lau,of l9i5 (Chaprer I (commencing
with Section 12570) and Chapter 2 (conntencing with Section 12639) of
Part 6 of Division 6 of the Water Code).
(2) The Flood'Control Lau, of 1946 (Chapter 3 (comnrencing with
Section 12800) of Part 6 of Division.6 of the lil'ater Code).
(3) The California Watershed Protection and Flood Prevention Law
(Chapter 4 (contmencing with Section I 2850) of Part 6 of Division 6 of the
I|/ater Code).
(b) The.costs described in subdivision (a) include costs incurred in
connection with either of,the follou,ing:
(1) The granting ofcredits or loans tit local agencies, as applicable,
pursuant to Sections 12585.3, 12585.4 oJ, subdivision (d) ofSection 1.2585.5
of and Sections 12866.3 and 12866.4 of, the Water Code.
(2) The implementation of .Chapter 3.5 (cornmencing with Section
12840) of Part 6 of Division 6 of the llater Code.
(c) Thefunds made available by this s.ection shall be allocated only
to projects that are not part ofthe State PIan ofFlood Control.
5096.825. Two hwtdred ninety million dollars ($290,000,000)
shall be available, upon appropriation, for the protection, creation, and
enhancement offood protection corridors and bypasses through any of
thefollowing actions:
(a) Acquiring easements antl other interests in real property
to protect or enhance flood protection corridors .and bypasses while
preserving or enhancing the agricultural use ofthe real py:operty.
'(b) Constructing nei, levees necessarl'.for the establishment of a
food protection corridor or bypass.
(c) Setting back existing.flood.cbntrol levees, and in conjunction
with undertaking those setbacks, strengthening or modifying existing
levees and weirs.
(d) Relocating or food proofing structures necessary for the
establishment of afood protection corridor.
(e) Acquiring interests in, or providing incentives for maintaining
agricultural uses of, real property that is located in a food plain that
cannot reasonably be made safe from fature fooding.
(fl Acquiring easement s ancl other interests in real property to protect
or enhance food protection corridors while preserving or enhancing,the
wildlife value of the real property.
(g) Flood plain mapping and related activities, including both of the
following:
(1) The development offlood hazard maps, including all necessary
studies and surveys.
(2 ) Alluvial fan flood plain mapping.
5096.827. Three hundred million dollars ($300,000,000). shall be
available, upon appropriation to the departmgnt,for grantsfor stormtvater
flood management projects that.nteet all of thefollowing requit'e,nents:
(a) 'Have a nonstate cost share ofnot less than 50 percent.
(b) Are not part of the State Plan of Flood Control.
(c) Are dgsigned to ntanage stormwater runqff to reduce food
damage and wherefeasible, provide other benefts, including groundu,ater
recharge, water quality improventent, and ecosystem restoration.
(d) Comply with applicable regional water quality control plans.
(e) "Ary consistent with any applicable integrated regional wdter
munagement plan.
5096.828. Funds provided by this article are only available
for appropriation until July t, 2016, and at thal time tite amount of
indebtedness attthorized by this chapter shall be'reduced by,thg amount of
funds provided b), this article that haue not been appropriated.
. Article 16. Program Expenditures
5096.953. The Secretary ofthe Resources Agency shall providefor
an independent audit of expenditures pursuant to this chapter to ensure
that all moneys are expended in accordance with the requiremen.ts of
this chapter. The secretary shall publish a list ofall program (ind project
expenditw:es pursuant to this chapter not less than annually, in viritten
126 I Text of Proposed Laws * * *
forn, and shall post an electronic.form ofthe list on the Resources Agency's
Internel lleb sile.
Article 17. Fiscal Provisions
5096.955. (a) Bbnds in the total amount of four billion ninety
million dollars ($4,090,000,000), not including thb amount of any
refunding bonds issued in accordance with Section 5096.966, or so much
thereofas is necessary, may be issued and sold to provide afund to be used
for carrying out the purposes expressed in this chapter and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. The bonds, when sold, shall,be and
constitute valid and binding obligations ofthe State ofCalifornia, and the
full faith and credit of the State of California is hereby pledged for the
pttnctual payment of both principal of, and interest on, the bonds as the
principal and interest become due and payable.
(b) The TreasuTer shall sell the bonds authorized by the committee
pvsuant to this section. The bonds shatl be sold upon the terms and
conditions specifed in a resolution to be adopted by the committee
pursuqnt to Section 16731 ofthe Government Code.
5096.956. The bonds authofized by rhis chapter shall be prepared,
executed, issued, sold, paid, and redeemed as proitided in the State General
Obligation Bond Law, and all of the.provisions of that law apply to the
bonds and to this chapte.r and are hereby incorporated in this chapter as
though set forth in full in this chapter.
5096.957. (a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the Slate Geieral Obligation Bond Law, of the
bonds authorizecl by this chapter, the Disaster Preparedness and Flood
Prevention Bond Finance Committee is hereby created. For the purposes
of this chapter, the Disaster,Preparedness and Flood Prevention Bond
Finance Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Controller, the
Director ofFinance, and the Treasurer, or their designated representdtives.
The Treasurer shall serve as chairperson ofthe committee. A majority of
the committee may actfor the committee.
(b) For purposes of the State General Obligation Bond Law, the
department is designated the "board."
5096.958. The committee shall determine whether or not it is
necesiary or desirable to issue bonds authorized pursuant to this chapter
to carry out this chapter and, ifso, the amount ofbonds to be issued and
sold. Successive issues ofbonds may'be authorized and sold to carry out
those actions pt'ogressively, and il is not necessary that all of the bonds
authorized to be issued be sold dt any onb time.
5096.959. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in addition
to lhe ordinary revenues of the state, a sum in an amount required to pay
the principal of, and interest on, the bonds each year, and it is the du.ty of
all fficers charged by law with any duty in regard to the collection of the
revenue to do and perform each and every act wltich is necessary to collect
that additional sum.
5096.960. Notwithstanding Section 13340 ofthe Government Code,
there is hereby appropriatedfrom the General Fund in the State Treasury,
Jbr the purposes ofthis chaptbr, on qmount thal wil! equal the total ofthe
following:
(a) The sum annually necessary to pay the principal of and interest
on, bonds issued and sold pursuant to this chapter, as the principal and
interest become due and payable
(b) The sum that is necessary to caty out Section 5096.963,
appropriated without regard to fiscal years,
5096.961. The departnte.nt may request the Pooled Money Investment
Board tq make a loan frorn the Pooled Money Investment Account, in
accordance with Sectio,t 163) 2 of the Government Code, for.the purpose
of carrying out this chapter. The amount of the request shall not exceed
the anxount of the unsold bonds that the committee has, by resolution,
authorized to be sold for the purpose of carrying out this chapter. The
department shall execute those documents required by the Pooled,Money
Investntent Board to obtain and repay the loan. Any amounts loaned shall
be deposited in thefund to be allocated by the department in accordance
.with this chapter.
. 5096.962. Notwithstanding any other provision of this chapter, or
ofthe State General Obligation Bond Law, tfthe Treasurer sells bonds that
(PROPOSITION lE CONTINUED)* * * TEXT OF PROPOSED IAWS
include a bond counsel opinion to the effect that the interest on the bonds
is excluded from gross income for federal tax purposes under designated
conditions, the Treasurer may maintain separate accounts for the bond
proceeds invested andfor the investment earnings on lhose proceeds, and
may use or direct the use of those proceeds or earnings to pay any rebate,
penalty, or other paymefit required under federal law or take any other
action with respect to the investment and use of those bond proceeds, as
may be required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage ttnder
federal law on behalf of the funds of this state.
5096.963. For the purposes of carrying out ihis chapter, the
pirector of Finance may authorize the withdrawal from the General Fund
of an amount or amounts not to exceed the amount of the unsold bonds
that have been authorized by the commiftee to be sold for the purpose of
carrying out this chapter. Any amounts withdrawn Shall be deposited in the
fund. Any money made available under tiis section shall be returned to the
General Fund, with interest at the rate earned by the money in the Pooled
Money Investment Account, from proceeds receiied from the sale ofbonds
for the purpose of carrying out this cAapter.
5096.964. All money deposited in.the fund that is derivedfrom
prgmium and accrued interest on bonds sold pursuant to this chapter shall
be reserved in the fund and shall be available for transfer to the General
Fund as a creclit to expenditures for bond interest.
5096.965. Pursuant to Chapter 4 (commencingwith Section'16720)
of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond
'issuance shall be paid out ofthe bond proceeds. These costs shall be shared
proportionally by each programfunded:through this bond act.
5096.966. The bonds issued and sold pursuant to this chapter nxay be
refunded in accordance with Article 6 (commencing with Sectioin I 67 S0) of
Chapter 4 ofPart 3 ofDivision 4 ofTitle 2 ofthe Government Cede, which is
a part of the State General Obligation Bond Law. Approval by the electors
of the stale for the issuance of the bonds under this chapter shall inclltde
approval ofthe issuance ofany bonds issued to refund any bonds originally'issued under this chapter or any previously issued refunding bonds.
5096.967, Thb Legislature herebyfinds and declares that, inasmuclt
as the proceedsfrom the sale ofbonds authorizeil by this chapter are not
"proceeds of taxes" as that term is used in Alticle XIII B of the Califurnia
Constitution, the disbursement of these proceeds is not subject to the
limitations. imposed by that article.
PROPOSITION 83
This initiative measure is submitted to the people in accordance with
the provisions ofSection 8 ofArticle Itofthe California Constitution.' This initiative measure arnends and adds.sections to the Penal Code
and amends sections of the Welfare and Institutiorrs Code; therefore,
existing provisions proposed to be deleted are printed in sttil<eouftype and
new provisioris proposed to be added are printed in italic type to indicate
that they are new.
PROPOSED LAW.
. SECTION I. SHORTTITLE
This Act shall be known and may be cited as "The Sexual Predator
Punishment and Control Act: Jessica's Law,"
SEC. 2, FINDINGS AND DECLARATIONS
The People find and declare each ofthe following:
(a) The State of California currently places a high priority on
maintaining public safety through a highly skilled and trained law
snforcement as well as laws that deter and punish criminal behavior.
(b) Sex offendbrs have very high recidivism rates. According to a
1998 report by the U.S. Department ofJustice, sex offenders are the least
likely to be cured and the most likely to reoffend, and they prey on the
most innocent members of our society. More than two-thirds of the victims
of rape and sexual assault are under the age of 18. Sex offenders have a
dramatically higher recidivism rate for their crimes than any other type
ofviolent felon.
(c) Child pornography exploits children and robs them of their
innocence. FBI studies have shown that pornography is very influential
in the actions ofsex offenders. Statistics show that 90% ofthe predators
who molest childien have had some type ofinvolvement with pornography.
Predators often use.child pornography to aid in their molestation.
(d) The universal use of the Internet has also ushered in an era of
increased risk to oul children by predators using this technology as a tool
to lure children away from their homes and into dangerous situations.
Therefore, to reflect qociety's disapproval ofthis type ofactivity, adequate
penalties must be enacted to ensure predators cannot escape prosecutiou.
(e) With these changes. Californians will be in a better position to
keep themselves, their children, and their communities safe from the threat
t""t
ii,Tir"T:0ff;,', or the people in enacring thi, n'"u.u." to
help Californians better protect themselves, their children, and their
communities; it is not tlle intent of the People to embarrass or harass
persons convicted of sex oifenses.
(g) Californians have a right to krrow about the presence of sex
offenders in their communities, near their schools, and around their
children.
(h) California must also take additional steps to monitor sex
offenders, to protect the public from them, and to provide adequate
penalties for and safeguards against sex oflenders, particularly those who
prey on children. Existing laws that punish aggravated sexual assault,
habitual sexual offenders, and child molesters must be strengthened and
improved. In addition, existing laws that provide for the commitment and
control ofsexually violent predators must be strengthened and improved.
(i) Additional resources are necessa(y to adequately monitor and
supervise sexual predators and offenders. It is vital that the lasting effpcts
of the assault do not further victimize victirns of sexual assault.
(j) Global Positioning System technology is an useful tool for
monitoring sexual predators and other sex offenders and is a cost effective
neasure for parole supervision. It is critical to have close supervision of
this class ofcriminals to monitor these offenders and prevent them from
committing other crimes.
'(k) California is the only state, of the number of states that have
enacted laws allowing involuntary civil cornmitments forpersons identified
as sexually violent pred?rtors, which does not provide for indeterminate
commitments. California automatically allows for a jury trial every two
years irrespective ofwhether there is any evidence to suggest or prove that
the committed person is no longer a sexually violent predator. As such, this
act allows California to protect the civil rights of those persons committed
as a sexually violent pledatol while at the same time protect society and the
system from unnecessary or frivolous jury trial actions where there is no
competent evidence to suggest a change in the comrnitted person.
SEC. 3. Section 209 ofthe Penal Code is amended to read:
209, (a) Any person who seizes, confines, inveigles, entices,
decoys, abducts, conceals; kidnaps or carries away another person by any
means whatsoever with intent to hold or detain, or who holds or detains,
that person lor ransom, reward or to commit extortion or to exact from
another person any money or valuable thing, or any person who aids or
abets any such act, is guilty of a felony, and upon conviction thereof,
shall be punished by imprisonment in the state prison for life without
possibility of parole in cases in which any person subjected to any such
act suffers death or bodily harm, or is intentionally confined iu a manner
which exposes that person to a substantial likelihood ofdeath, or shall be
punished by imprisonmeut in the state prison for Iife with the possibility ol
parole in cases where no snch person sulfers death or bodily harm.
(b)(l) Any person who kidnaps or carlies aviay any individual to
commit robbery, rape, spousal rape, oral copulation, sodomy, or sextat
penetration-rn any violation ofSection 264.1, 288, or 289,shall be punished
by imprisonment in the state prison for life with tfte possibility of parole.
(2) This subdivision shall only apply if the movement of the victim
is beyond that merely incidental to the commission oi and increases the
risk ofharm to the victim over and above that necessarily present in, the
inlended underlyi ng oflense.
(c) In all cases in which probatiorr is granted, the court shall, except
in unusual cases where the interests ofjustice would best be served by a
lesser penalty, require as a condition of the probation that the person be
confined in the county jail for 12 months. If the court grants probation
without requiling the defendant to be confined in the county jail for l2
rnonths, it shall specify its reason or reasons for imposing a lesser penalty.
' (d) Subdivision (b) shall not be constlued to supersede or affect
G
E
* * *Text of Proposed taws I 127
TEXT OF PROPOSED LAWS * * *
Section 667.61. A person mhy be charged with a violation ofsubdivision
(b) and Section 667.61. However, a person may not be punished under
subdivision (b) and Section 66j.61 for the same aci thal constitutes a
violation ofboth subdivision (b) and Section 667.61.
SEC. 4. Section 220 ofthe penal Code is amended to read:
- 220. Fivr:ry (a) Except as provided in subdivision (b), any person
who assaults another with intent to commit mayhem, rape, sodomy, oral
copulation,oranyviolationofSection264J,21s,or2ggisp,utris.hab#sftal/
be punishedby imprisonment in the state prison for two, four, or slx years.
(b) Any person who, in the commission of a burglary of the frstdegree, as defined in subdivision (a) of Section 460, assiults another with
intent to commit rape, sodomy, oral copulation, or any violation of Section
?6!.1, 288: or 289 shall be punished by imprisonment in the state prisonfor
Iife with the possibility of parole.
SEC. 5. Section 269 ofthe Penal Code is amended to read:
269. (a) Any person who commits any of the following acts upon a
child who is under 14 years of ag e and. I0 seven o. mo." yeur. loungei than
the person is guilty ofaggravated sexual assault ofa child:
(l) * Rape, iz violation ofparagraph (2) or (6) ofsubdivision (a) of
Section 261.
- (2) *Rape or sexual penetration. in conceit,inviolationofSection
264.1.
shall be transferred by the Controller as provided in subdivision (b).
. (tl 6* Except as provided in subdivision (d), out of the moneys
deposited pursuant to subdivision (a) as a result of second and subsequent
convictions of Section 290, one+hird shall first be transferred to the
Department of Justice Sexual Habitual Offender Fund, as provided in
paragraph (l) of this subdivision. Out of the iemainder oi all moheys
deposited pursuant to subdivision (a), 50 percent shall be transferred io
the Department ofJustice Sexual Habitual Offender Fund, as provided in
paragraph (1), 25 percent shalL be transferred to the Department oflustice
DNA Testing Fund, as provided in paragraph (2), and,15 percent shall be
allocated equally to counties that maintain a local DNA testing laboratory,
as provided in paragraph (3).
(1) Those moneys so designated shall be transferred to ths
Department of Justice Sexual gdbitual Offender Fund created pursuant to
paragraph (5) ofsubdivision (b) ofSebtion 1 I 170 and, when appropriated by
the Legislature, shall be used for the purposes ofChapter 9.i(commencing
with Section 13885) and Chapter 10 (commencing with S.ection 13g90)
of Title 6 of Part 4 for the purpose of monitoring, apprehending, and
prosecuting sexual habitual offenders.
(2) Those moneys so designated shall be directed to the Department
of Justice and transferred to the Department of Justice DNA Testing
Fund, which is hereby created, for the exclusive purpose of testin!
deoxyribonucleic acid (DNA) samples for law enforcement purposes. Thi
moneys in that fund shall be available for expenditure upon appropriation
by the Legislature.
_. .(3) Those moneys so designated shall be allocated equally and
distributed quarterly to counties that maintain a local DNA testing
laboratory. Before making any allocations under this paragraph, thi
Controller shall deduct the estimated costs that will be incuried to sei up and
administer the payment ofthese funds to the counties. Any funds alloiated
to a_ coxnty pursuant to this paragraph shall be used by that county for the
exclusive purpose oftesting DNA samples for law enltorcement purposes.
_ (c) Notwithstanding any other provision of this section, the
Department of Corrections or the Department of the youth Authority may
collect a fine imposed pursuant to this section from a person convicted ofi
violation ofany offense listed in subdivision (a) ofSeition 290, that resultsin incarceration in a facility under the jurisdiction of the Department
of.Corrections or the Department of the youth Authority. Ali moneys
collected by the Department ofCorrections or the Department ofthe youih
Authority under this subdivision shall be transferred, once a month, to the
Controller for deposit in the General Fund, as provided in subdivision (a),
for transfer by the Controller, as provided in subilivision (b).
(d) An amount equal to one hundred dollars for every.fine imposecl
pursuant to subdivision (a) in excess of one hundred dollars shall be
transferred ta the Department of Cotections and Rehabilitation to defray
the cost of the global positioning system used to monitorcex off"idi,
parolees.
SEC. 8. Section 311.ll ofthe penal Code is amended to read:
3 I 1. I 1. (a) Every person who knowingly possesses or controls any
matter, representation of information, data, or image, including, buf not
limited to, any film, filmstrip, photograph, negative, slide, pf,otocopy,
videotape, video laser disc, computer hardwire, computei software,
computer floppy disc, data storage media, CD-ROM, or computer_
generated equipment or any other computer-generated image that contains
or incorporates in any manner, any film or filmstrip,, the production of
which involves the use of a person under the age of lg years, knowing
that the matter depicts a person under the age of lg years personall!
engaging in or simulating. sexual conduct, as defined in subdiviiion (d) of
Section 311.4, is guilty of a pubtisoffeme felony and shall be punishi.d by.
imprisonment in the state prison, or a cotnty jail for up to one year, or by a
fine rot exceeding two thousand five hundred dollars ($2,500j, or by both
the fine and imprisonment.
, (b) tfa Every percon who commits a violation of subdivision (a), and
who has been previously convicted of a violation oi this section, or-oFa
violation of subdivision (b) of Seetion 3l l;^; or srbiJiviion (b) of Seetion31ffi1€-oi*e an offense described in subparagraph'({ ojparagraph
(2) ofsubdivision (a) ofSection 290, or an attempt to "o-iii ony-oyih"
above-mentioned oJfenses, is guilty of a felony and shall be'puniitred by
imprisonment in the state prison for two, four, or six years.
(c) It is not necessary to prove that thb matter is obscene in order to
establish a violation ofthis section.
(3) Sodomy, in violation of paragraph (2) or (3)of subdivision (c),
or subdivision (d).Section 286@
Yietrm-or-anothereersori.
, , (4) Oral copulation, in violation of paragraph (2) or (3) of
subdivision (c), or subdiuision (d), of Section 288a;-whereo,nmitffitv
lorce; vtoton ;i@
(5) A Sexual penetration,lr violation of subdivision (a) of Section 2g9.
(b) Any person.who violates this section is guilty of a felony and
shall be punished by imprisonment in the state prison for 15 years to life.
. (c) .The court sha!! impose a consecutive sentence for each offense.
that results in a convicrion under this section ifthe crimes-involve sellarateyictims or involve the same victim on separate occasions as defned in
subdivision (d) ofSection 667.6.
SEC. 6. Section 288.3 is added to thd penal Code, to read:
288.3. (a) Every person who contacts or communicates with a
minor, or ottempts to contact or communicate with a minor, who knowsor reasonably should knou' that the person is a minor, with intent to
commit an offense specifed in Section 207, 209, 261, 264.1, 273a, 2g6, 2gg,
288a, 288.2, 289, 31L1, 311.2, 311.4 or 311.il involving the minor shall be
punished by imprisonment in the state prisonfor thg teim prescribedfor an
attempt to commit the intended offense
(b) As used in this section, "contocts.or communicates with"
shall include direct and indtrect contact or communication that may be
achieved personally or by use of an aient or agency, any prifi medium,
any postal service, a common carrier or communication common carrier,
any electronic communications system, or any telecommunications, wire,
computer, or radio communications device or system.
(c) A person convicted of a violation of subdivision (a) who has
previously been convicted of a violation of subdivision (a) shalt be
punished by an additional and consecutive term of imprisonment in the
state prison for.five years.
SEC: 7. Section 290.3 ofthe Penal Code is amended ro read:
. ,2?.9..3.. (a) Every person who is convicted of any offense specified
in subdivision (a) of Section 290 shall, in addition to any imprisonment or
fine, or both, imposed for v.iolation con mission of the underiying offense,
be punished by afine of trto three hundred dollars ($2O0) ($iOO) ryontnefirst conviction or a fine of lfueefive hundred dollars ($300) 1$lSO-01 upon
the second and each subsequent conviction,.unless the court determines
that the defendant does not have the ability to pay the fine.
An amount equal to all fines collected pursuant to this subdivision
during the preceding month upon conviction of, or upon the forfeiture of
bail by, any person arrested for, or convicted of, committing an offense
specified in subdivision (a) of Section 290, shall be transfeired once a.
month by the county treasurer to the Controller for deposit in the General
Fund. Moneys deposited in the General Fund pursuant to this subdivision
128 I Text ol Proposed laws* * *
PROP
(d) This seclion does nol apply to-drawingt^' fiq:ll:":: *utues' or any
film rated bv the Motion picturl'is'sociation of Ameriba' nor does it apply
to live or record.a t"ttpt''on" rnlffi;l5l1t-"nsmitted' disseminated' or
c"it"iitiJ "t
part of a commercial transactlon'
SEC. 9. Section 66?'5 of th" P""ul Code is amended to read:
667.5. Enhanc"'n*t Jt^n'Jn t:111 .lt new offenses because of
p.lo, prilon rerms shall be imposed as {bllows:
(a) Where one of the 'i"*-otttntt*
is one of the"violent felonies
soecified in subdivision ttl"irr*"Oiitli" L-and consecutive to any other
.ri.on 1"r., therefor, th" tJf;;;ii"i*po'" u three-year term for each
nrior separate prison term t""i;;;il;;iendanr whererhe prior offense
*u. one of the violent teroni"t- 'p-JtintO
il t"bd,lii:l:1ic)' However' no
additional term shall u" '*pl'"i unOer this subdjvision for any prtson
term served prior to a o"""aui ti v"^u'tt in *rlitrl tlt-|:|""d"* remained
free ofboth prison custody t"O'tt" i"ttltsion ofan offense which results
in a felonY conviction'"' "'i;j';;ilqi *T,:.:tli,illii".',i:l*lli!i, lJll:lHffi :':H:illl:
[':11",,1""'JL"::|TR1H; liltJil;.;j.'l'"IlJ:il,T""J'",XTill
i"Jff l,#:.,:ililf, '"1,TJi;r;,io""o.,this.subdivisionforanyprison
r",*,,,u.a prior to a perioJfifl]]*,'l.X*l;nf**#':i1::li'1
free ofboth Prison custodY
in a felonY conviction'
(c) For the purpose ofthis section' "violent felony" shall mean any
of the following
(1) Murder or voluntary manslaughter'
OSITION 83 CONTINUED)
(12) AttemPted murder'
li;l ;;;i;;.;orsection r2308' r230e'or 12310
(21 ) Any burglary ofthe first degree' as $efn3O il.luUaivision
(a) of
Section 460, wherein lt
'' "nu'e"i ""? ntli'3d tfttl.ilither person' other
than an accomplice, was pt"J"fit in the iesidence during the commlsslon
of the burglarY'
(/2) dny violation of Secti on 12022 '53 '
(23) A violation ot 'uUaluition
(b) or (c-) of Seciion ll4l8 The
r_.er,li',l,in"a,;;i:;*n'y*:i::iif,,";,'1.*1il?j.Tfi :'-'ffi 'il
considerat ion when rmPoslnl
for these extraordinary cnm'es of violence against the person'
(d) For the purp"'t':jiij: ;:"H;a:" j;,f11THl3llnffiffi:
i:"f T::il'i,
ool' ::1"':1,::: jl' phr ""
il; n"u"' n"t occu rs' i ncr udi n g
anv time during which tn" i"i""tOt"i 'Lmains
subject to reimprisonment
foi escape from custody "tjt t"itplft""ed on revocation of parole' The
additional penalties p'outo"iio"' iii"t pti*" terms shall not be imposed
unless thev are charged t;"#;i'l; ;; i;""i lrue in the action for the
***TEXTOF
(d) A violation of Section 288 or
PROPOSED LAWS
288.5 bY a Person who has been
(s) Oral copulation dS
defned in subdivision (c) or (d) ofSection 288a.
or lascivious act
(e)Any robberY
00)Arson, in violation of subdivision (a) or (b)of Section 451
01)Ttisoffuitse Se.xual as defined in subdivision (a) or
of Section 289
*-
T5lih additional penalties provided-for prior. prison ter s shall not
b" i-;;.;;'f;,"uny r"rony r"t *riitrt the defendant did not serve a prtor
*t*?fi
T;,;'"till;'0"1""'1"t" "lonv
shall include a,conviction in another
iurisdiction-for an on"n'" *n1ltl' iilffi;ili; cililornia' is punishable
'hr imorisonment in the ttut" ptiton if the delendant served one year ot'
ffiHl*trfi*ff;l*mrulf'"l E
(g) A prior separate prison term lor the nurnosel 3l
mean a continuo" totp'"tti o"t'i"o "r
pii*" i""arceration imposed For the
oarticular oflense alone "' ';Pc"o;;;;i;;;"*ith
ton"ut'"nt or consecutive
senrences for other "ri..r.'iniuiini'uny
i"in-'p.ltoll:nt on revocation
or parore which is no, u..o'ii'iilJ-Ev u n"* :;tTl]T:l:-l:,prison'
and
;;"ffi;;; ;;v-;timpti'onm"ni after an escape from incarceratton'
(h; Serving a p'i'-on tt't includes any confinem-ent time in any stale
nrison or federal penal '"uii"ti"" tt punishment lor'commission ol an
offense, including t""fi"t;;;u'i;'; ioJpitur or other institutiou or facility
credited as service of p'i'on"ti*" i" ihe jurisdiction of the confinement'
(i) For the Ou'Oott'"o' this section' a commitment to the State
Department of Mental HJlth"; t t""trrv disordered sex offender
fnllnwins a convlctlon or a r"i"rv, *tti"rt..ommitmeni exceeds one year tn
il.;ii;;:;;ile deemed a Prior Prison term
(i) For the purposes of this section' wh^en a person subject to the
custodv. control, unA al'cipt i"n" oiif''t oit"ti"t "fcorrections
is incarcerated
ar a rac il itv operated bv"th; il;;;;;;; li'1: -":Jll -LTl^"ritv'
t h at
l#.;";il";'huti ue a"Ltea to be a term served in ttu'" Ptllon' --''^'^-
. (k) Not w ith stand i ng s ubd i v i s i ons ta r an{.li} i.ifi iJ 1it5: i.:iHl"[
"f h;. ;;;;; ";e
of the nlw offenses is commrtted'wn
temporarily removed f'";';il;;;;tsuant to Section 2690 or while the
defendant is transferred t;'#;;;;;iiv lacilitv'pursuanl to Section 3416'
6253. or 6263, or*rt'* tr'Jitit";;;;'it "" tuitolgh Dursuant to Section
6254, thedelendant th"ll';":;;;;ii it't i"il enha'ncements provided lor
(14) Kidnappin9
.r".t to commit mayhe,m;-rapa;sodornypr(15) Assault with the it
"*t;ojJ#fi#'')'t'i7"a 7"t""' in violation of Section 220'
(16) Continuou' t"*uui ubt"" of a child' in violalion of Section
288.5.""" "U|
Carjacking, as defined in subdivision (a) of Section 215'
(18) * Rape, 'pou'ot 'op"' or sexual penetration' in concert' in
violation ofsection 264'l' uld consritute a"" -'ii9)
Extortion, as defined in Section 5l'8' which wo
r.r""i'Jrl,r"ir"" ;i;;;tt"; 186'22 orthe Penal code'
(20) Threals to uittit''o' *itnesses' as defined in Section l36 l'
which woutd constirute , t",l"o; iliffi;;t s";tion 186 22 of the Penal
Code.* * *Text of ProPosed laws I 129
TEXT OF PRO POS EDTAWS***
;f# ffiffi:"* at the time the person otherwise would have been released
(d)
for each
and consecutive term shall be serced imposed
and consecutive term may be. imposed for each violation
SEC. ll. Section66T.6ofthepenal Code is amended to read:667.6.(a) Any person who is
in subdivision (e) and
offenses shall receive
convictions
(c) In lieu of the term provided in Sectiori lt70.t,
'.o.tll".iili;n3lt",l'^^::::d
consecutivelv to anv other rerm or
,ouror,u*u..iffi ffi ;:fr ffi :1"T"#"1,:iJ:?:;tlnn""*#in any determination oursuant to-Section If ZO.i. e"y"tf,er term imposedsubsequent to that term *nat noib"-ffi;;;;il J", shalt commence atthe time the person ptherwise *oulO frauJUe"n ,"-t.urii frorn pri.on.(e) This section shail appty to the fotto*ir[ oilnrut(I) Rape, inviolatic
(a) of section 261. tn ofparagraph @' (3), (6), or (7) ofsubdivision
. (2) Spousal raoe.
sub?livision'(a) ofs";ti;rit6;:lation of paragraph (I), (4), or (5) of
(3) Rape,spousal rane n, "o,,,-t ^--^.--.:ofSection264.l. :pe'orsexualpenetratio.n,inconcert,inviolation
',,, {?,,f"? !: il; i,i i ii,i !}"i
"
{:,' ;tru: :o
o ( 2 ) o r ( 3 ) or s u b d i v i s i o n ( c ),
(5) Lewd or lascivio2gg. us act, in violation ofsubdivision (b) ofsection
2Sg.S(:)
Continuous sexual abuse of a child, in violation of Section
(7) Oral copulation
, u r ai, i i in r q,; ;;;;;: ;;,,:: (;;": : i;i ;{ "r":#r;;:r:
(2 ) or (3 ) of
(8) Sexual penetrati,
Section 289. . .on, in violation of subdivision (a) or (g) of
(9) As a present offenll r,tnler.yubdivision (c) or (d), assault witht n t e n t to c om m i t a s p e c ffi
"
a,
", u o t o6" ni
",' i ri ri ri )ii"r'"t s
"
c t i o n 2 2 0.
""-J!,!/01u:::l;:,",o,1,!:",,.to!
under subdivisioo 1o1 o, (b), an offense
ofense specifea i, ,ni" rrtfi'irtiXrt.hat
includes atl oi the it"*"nt!"i7'o,
k)',?u':,;!!::l,ii;i,,i\,!:!::lltlylimnosedpursuantrosubdivision
!!:::i!sioVoii;;Wf::;::"1':,12i'".";:;!#,:#1,'';;:fr:ltmposed and collected Dursuant to *i, iiliiriri*"rro"i, * deposited inthe victim-witness Assistance Fun.d b b;';;;;;;;:;, J:;' "w_priaiion toJiund ch ild sexua l exploitation and "ntu- r".i'i ri,li,,ii",i^ counseling
if ':;:"::!,';?::'f ;:"'i:?!lestabtishedlu)iuo'iios""tionnai|.ortb), the r.;;;i;;;;rr,;.:: 'ip:tt^d pursuant to rlr" suboivision"f'j
z p"r""nt ortl,"1o;;i;il;;'::?,tost orcollecting that fine, not to exce;d
county treasury il h;;;;f,i*#fi1$,fl:'LT""#. g*.'ur runJ;iiiJ
SEC. 12. Section 662.61 ofthe penal C"A" ilurn"nO.dto read:667.61. (a\ ,t Anv Dersori who is :onvicted oiun,irrrr. specified
:l*1?iil;'ru,(:l Xlffl H: :: To'. "r 'd;;;;;;;,i"., .p""in"d in."bdi"i;i;;.di,iliffi ffi ii[,T,:ffi ,3ffxn'li::::,:H,,x:'tl2J years ro ttt
a full, separate,
of Sectiort220:
130 I Text of proposed laws * * *
PROPOSI
289.
(6)
(2) or (3)
TION 83 CONTINUED)
***TEXTOFP ROPOSED LAWS
t*ttlir'l
roru s; al r ap e,in violation of pa r agr uph (1) o r ( 4 ) of subdivision
(a) of Section 262'
(3) * Rape, spousal rape' or sexual penetration' in concert' in
violation of Section 264'l '
(4) * Lewd or lascivious itct' in'tiolatton of subdivision (b) of
Section288. r r.!:^
(5) * Sexual penetotion' in violation of subdivision (a) of Section
another person in the commission of the present offense'
(7) The defendant admini't"'"d a controlled substance to the victim
hv-{ore€-.-'ri€,1,enee-of+car ;'til;';;;l;;ion of th" present offense in
vlolation of Section 12022'75' in violation oJ"'"- r;;
-rni"
drpraort committed the presen! offe.nse.
section 264.t, subdivision tai'"i'i'"ti"' iau'"''!.i!::.':::'(d) of section
288a, and, in the commiss.ion"Li'not offense' any p'e-rson commitled any
act described in paragropn ''ilifii''ii'tn)'
(6)' or (7) of
,this
subdivision
"' - 6 ir *rv.,r," ::"# ;ll:..J .!|"i,fi,il:'?il:T";L'n"*'i
';#13i"'T':Jril.l'.11'l[]r TE ;';pir;;;;;en pred and proved' that
tir.rmrtun"" o, tt.to'" tttturn*iJi"t'
"riuir
u" ut"d as the basis lor imposing
rhe term provided in .utoi"irilrii"i"r'iui rl,.t ever,is sreater' rather
than being used to impose'ii';'il;J#i iT!h:']T-Lunder'anv
other
nrovision o/law, unless uno't't"p-u'tio n of law provides for a greater
i::";i';i;i^;;:i:t':::::::iii!::ini;';'!:",2:l:I:;:I::"::lf iXi
':oi!rl11::(""i"(;{rli"Yi,''l'l'i"^"'*"J'p"'in"d'insubdivision(d)or
(e) have been pled una ptou"J' ift" minimum number of circumstances
*ttutt b. used as the b"'it lb;;;;;ing tt'" t"t* provided in subdivision
uiffi ;;ffi;;rq"{r":?'$:ln::li::l:ii,"#;.ll:T"i}'l#n:1
1o impose any punlshmenl or clrrtduvurrr!
in violation of ParagraPh
o/Section 286-ot288a-bY
tr
"u'io, The following circumstances shall apply to the offenqes specified
in subdivision (c):
(1) The defendant has been previously ::n]li* of an offense
soecified in subdivision t"l' iiifuAiitg an ofiense gsrnm-ilted in another
iurisdiction that includes "rf'"i'itt"'Litt"nts
of an oflense specified in
subdivision (c)' lent offense and"""''iii in.i.fendanr kidnapped the victim'lil: l*'
the movement of tt . ur.t,r'l'uistantially increased the risk of harm to
thb victim over and uu""" if"t"ft""i'of"itt nttttturily inherent in the
""i".ivi"g "ft""se
in subdivision (c)'
(3) The deferidant inflic-J aggravated -?1"1-:t torture on the
victim or another person ,""in" "ii.-i.rion of the present offense in
;iillil";ilioiosorzoe'
(4) The,defendant committed the present oflense during the
commission of a v"gtu'y ffi:j'"il'g""'i" a"fined in subdivision (a) of
Section 460, with intent to "o*i'iii un Jff"nse specified in subdivision (c)'
15) The defend"^ '"^^)i'i'o rhe present "{I:,:':: "
violation of
Section 264'1, subdivisionii)'"ii;"'"' i86' or subdivision (d) ofSection
2gga. and, in the commission oithat offens", any rF?: committed any act
iz:;;i;;;' ,;;';;;;agroph 12), d)' or G) of this subdivis,ion'
(e) rhe followin* "t;;J;;;; shall applv to the offenses specified
ut"ttl;,
The defendant engaged in the tying or binding ofthe victim or
* * *Text ol Proposed Laws I 131
TEXT OF PROPOS EDLAWS***
yeais-ifthate"risorr
(c) This section shall apply to any ofthe following offenses:(1) * Rape, rz violatio
Section 261. rn of paragraph e) or (6) of subdivision (a) of
,^l .r?!"tj(itiit rape' in violation of para sraph (tl or (4)of subdivision
(3) * Rape, spousal ronp nt r.v,,^r ^^.--, ..violatio,n;f i.;{ri;""i;t.\:t rqpe, or sexuat penetration, in concert, in
(4) * Lewd or lascivit
ofsection 2gg. )us act, in violation of subrlivision (a) or (b)
,..r,JiL$.t""uat penetration. rn violation of subdivision (a) or (j) of
2gg.516)
* iontinuous sexttal abuse of a child, ln violation ofSection
violation of Section 205.
(7) z\ Sodomy, in violatiron ofsubdivision (c) or (d) ofSection 286W
eq (13) An offense committed in another jurisdiction that has'A;YWj;:;l'ffi1[;.1,X1 ;i];";; #l'.ii"ii i'i'"*'*-"<-r*
(d) Notwithstandins Se.ction I3g5 or any other provision of law, thecourt shail not strike arw ,ailega.tion,-a;^;;i;,";'rr;;ding of any prior"f,",ili,,f!,ir,",i{f!rio,i*ai,7,io, i";i;;;;;',;J,:,,i{.ro ,, su.biict to.
-_-_,1"1 ,!":r,m,st1.n(inS ay:t olher provision oftaw, probation shalt not begranred to, nor shall the ex,,;,4;y*";:;;'.;::;;r:"::i:;:;;r,^:),,,::n{";:"J:";,tu*,p"ia"i
f, This section shall apply only^iftl" a"f"nAunils statu, us a hubitralsexual offender is aleeed in ti. iit.*urd-';;;';:;,iry pteading, andrll#;Hji3g:*a""t i"."p'" ""u.;.;;iffi," be true bv the
trier offact.
SEC. 14. Section 1203.06 ofthe penal Code is amended to read:1203.06. @(a) Probation /Vo twiths:aId.lnC any ot.her provision of law, probationshalt nor be granred ro, nor sha,l th*;;";i;;#',ro.Jlii,l" of senrence besuspended foL nor shal! a finding.bringing th" a"iri"r).*irnin this sectionbe s t r ic k e n p u rs u a n t t o Si c t ion I S A s ior,-rri o{'tfr. iliio* ing p..ron.,
^- ^..!t) Anyperson whopersonaily used a fi rearm during thecommissionor alrempred commission of any of ihe frito;,ng;;;.i"(A) Murder.
(B) Robbery, in violation ofsection 2ll.(C) Kidnapping, in violation ofSecrion 207,20g, or 209.5.
,r r,"r?,),,W L"*io, tascivious act,
',r,.fl,f"';'.'"Xil#l*l'::l
(a), "used a firearm" means. to dispray a
srrike or hit a human b.inn *::l
to intentionally fire il. or to int.nti6nlill
unctu, Se"tii, l);;;.;",,* v.ltth,t. or to use i! in any mann", that quatitri,
, @ .(3) As used in subdivision ta), .,armed with a firearm.,means to
5ffHX:y carry or have avaitabref)r us;;;;;il;#eans of orfense
132 I Text of proposed laws * * *
(2) Robbery, in violation ofSection 21t.(3) Kidnapping, in violarionofSection207, 209, or 209.5.
,,,,"ff),W u,*i o) u,"i,ious act,,
***TEXTOF POSED LAWSPRO
ROPO SITION 83 CONTINUED)
(5) BurglarY of the first degree, as defined in Section 460'
(6) RaPe, tn violation of Section 261,262'
''unili
o""uu,,with intont to commit npe-orsodomy a specified sexual
tknie,' in violarion of Sdction 220'
'""i*1"u."*, in uiolation of Section 4530 or 4532'
(9) * Sexual penetratioi'lo "i"t"tt" of su#ivisiorn{4)-of Section
TEXT OF PROPO DLAWS***SE
or all ofthat payment uDor,h,rt ";;;;;;7;;';J,i:Xi,lf{;j';;,:{:;:,;:i!:!r:;r;i;,r::r!",!;,::;:;';X',i; i:',:r:tr:;;";: :;::ti t u t ion r nes, i;;' ; ;; ;,:;",,, and sha t t give
1or the gtobal por,,,on,nn f!.,t-f,\te'ms
b,lfore requiring tl'at ttru ir*a,i"io)
the basis
"f i,{.;i"iiiii|onttoring' No inmate shai be a*i"i i"i[H
sEC,e r*,,"",#?i? i:!{;:";:#:,^:::rr::;,: :^:^,,"
"
o*J?31';.,$',J,"J::'l'J::1''g anv other ;;;;;; raw. when anyiuu.notirfiirin;i15ffiT'jLi (r) of.subdivision (b) of Section l,jiio *r,,i
rcr or s"ction-iiij;:;::1"jii9 "
violent felonv, as defined in suuaivisioi
.11,
u"'i * n".r."*ffi;l;ff:ili ili:fi:: lilrhe srate p,i.on, und
withi n 30 days, that p.r.on_ ihar r u, a
".r,..g.i.
j."r: ;:".Td:ll i::TT:uepartmenr olCorrecrions recomr"."a. r"it. b1-;i;;;.["" Terms rhar rhefi'ji:l* f ff ;!i.ff , ffi:'fi :.10, r'. 0".'a,' i". e";;JJ;, derermi nes rhar
any person referred to in ou.u,o'*"nt'unoing
any other nrot;tion oiru., rir"lt
tur'irp.t.on.a il;olil1,19i"ph
(l') ofsubdivision (b) of Section Eoo'o *rr"
1c)ofsection io;;,;;:';.::ll9'a vioient felonv' as defined in ruuaiui.ion
ffi l:'.ilj"'ffi;1'."?ff :*?atrjxi.il:."r'''::.1"'*;f fiffi lild;
:::im$*.t#n:l:r".:t*il1t"1T.i:'#:*;*?:.'r**:[
straltaiscnaige, wil;; ffi""- i:" release from confinement. the department
recommends to ths 66a.6 thil lJlat person from parole, unless the department
* n*l",lp :ffi nli:{. ** ;
il?
ff H,ffi:'ff :i*t1f, f ;
a copy th".eolio il;;1i'":"*mination and the department shall transmit
(b) Notwithstandins
''g::f
:*;mii,,j#:#iN:J,ffi l,,Hi,;:,H;#t%ili*T::t
for {hree },.;il;;;;*d;!.stfte Prison' and has been on paror" .ontinuou.iy
the board shalt discharse. ,..111T
t-o1q""rn.nt u-*i""-tl##r;;]3
rt e uoaJ, roi'g;;;.;:;"r:l :1111 l0 davs, the person from parote, unless
parote. Theli6i1-i;h;in:kT::.Ttnes that the person *ilr d. '"i"i*J ""deparrmenr.h"lil.;ffiffiIe a wrttten record of its dere'mipa1;6n unifi.
"-,^_.!2
Not,im*on:iini;"i':iT:';,,,;.,,;;!,^,,i,i1,, _,r,; ,:;r";::":,ryerred to in parasraph
!11 :/ "rbdiririon iLl'U. q"r,,", 3000 hasoeen reteased on parole from the.srate pr*or,,1nf nX been on parolecontinuouslyfor six leari sin-c^e ret*r"ir, ""tri*rlir, the board shalt
?:::" : :: ; ":' I;:,!f , f:!i ; J ",*,, o, j,o
^ p, ; ;;); ;', | ; ; ;,, t h e b o a rd fo r
too,a snott iai)';';;;,;;'",::'" person.witt be retained on parote. rhe
,na u mni,' i:i )'";;;,';"';:;::ii :{:::;::rm i ni t ion a nd rhi a"i",) ^,,,(d). ln the event of a retto a review by the parole ,"rrl:,'i:i:1 parole' the parolee shall be entitted
statutory period ;ff;;;. #""Xil
e ach vear thereafter until ,rr" .r"i'rr.i
n.gui*J:1.il'"xT:tflt"lts to this section nrade during the re87-88
r.lx**t:lln:*"il!'ri'::T:iti,?H::;xij":?,.,.,H,.;,t
amendments. ias hxed as of the effective A",
"F.rf,"rr"
if::;:f,'*::ffiff",,1f" weight to the protection orthe victim and rhe
'n".[l] Ji:;::fli"rfl:tect the lire or saretv or a vi*im, rhe paroree, a
(2) pubiic concern that^wourd ieduce the chance that the inmate,sparole would be successfuLy completed.(3) Ttre verified existence nF q r,,^_r- ^rc-uo.utionuii.uini;;i.i;;:*e of a work offer, or an educationar or
n". #l,J,L".i"jijlff.,[lt','rin anorhercounty wirh whom rhe inmate
thu, ,t
" inruiJr";'ffi.f:,u"0 whose support *ould incr.a.e the chance
_^ , l:) rhe rack ornece":?iidiii!ilTil".T...s
rorparoreesrecelvlng treatment pursuant to Seition
(c) The Deparrm"nr
"l_9:lr.".1i"ns, in letermining an outof_counrycommitment.shall give priority,",n","i.rv
"f ifl..."iwltnesses and victims. u, rilE communtty and any
(d) Jn making its deci^sion a!ou1 3n inmate who participared in a,?ilj ;Tlffi #:!]fr #:il1r,,o n,ti.r. r l^'1'Jo*;;Ji", with secti on
to ..l.uri ng
-hirri';
il;? :'J"t
authoritv shal I give seribus considerar ion.,prov.'"iiro.uli',i,"il.i1ffi :ll"yl:l"n ji:f i[!:.Jiffi i,,ffior she lntends to employ the inmate upon ,"l"u*i-."...,u .
o.o,l,"#1,:?'.tl';H:i:ilp"ion,iruuuiluro,shaubr
pa,o,edinmate;;;#-il:Jtrtf hlfit,ilr"1*:nff A,,LllY;
(A) Last, first, and middle name.(B) Birth date.
SEC. 20. Section 3003-ofthe penal Code is amended to read:3003. (a.) Excepr as
m ;il;n::;ffi k
j,:::,.#lllil Fid.llffi'm';:: .';n n; j*{T*,'j'ii.,i}'I*i{t1i,"i"il:$H;ff ffi :*t,".,"",,.
wrri re connne j'i;'; il;t;:Xijf whereifl .the inmare com m iu.a u,, oir*i.,*"t.'ii''" ,#;;;:;:t:i]'"" or local jail facilitv or '"r'1. "onh""J ro.
,.."iil"1:i|;tl'i?iil'1c#fgtyrsion (a), an inmare may be rerurnedtheeoard.oip;;iliil:",:',i[ ji.,!i"'r:ilJf jffi :
jiilrl.'T.;Jj
'TJH,:',l :H',fi*["i'3jlv i s io n-(b) "r s".ii""' I r"os f ls oet",.", i nea uy
::::::*"""..""#.,:"h$i jlfj:i!.r#J:rili.",if ru,::lm.,l{i
in the parolee's ;;;##';:::o,unlv: it shall place its reasons in writing
,o,r,, .r,",iiio. ;,;i";ffi i ;.TXi:*i:"" g:#:.""ffi :; ii;;iilfi :oecrsron, the paroting autho'ity Jr,.ri."".ij.;il;r,;rrn";:r, the fofi owing
134 I Text of proposed laws* * *
!!l f*, race, heighr, weight, and hair and eye color.(D) Date ofparole and discharge.
-'-' -"* vJw !
(E) Regiitration str
"r" "J"i."rr"? .";:ffi:::Hl::T::T:ILTJ::''.ed to register as a resuit
' (F) Catifornia Cri:rj::i,liformu,ion Nu.f"r, FBI number, socialsecurity numbeq and driver s ttcense number.(G) County of commitment.
(H) A description ofscars, marks, and tattoos on the inmate.
*.,',!?,3ft'.1i: tf,f,*HhL: *n'''n tr"']"'"re was convicted that
(J) Address, including all of the following information:(i) Street nur. ung.j:Tber. post #;;; numbers are notacceptable forpurposes ofthis subparag.upt..... - ""^
(ii) City and ZIp Code.
.,'", o$J"3lttT:t"ffi;ig:"' provided pursuant to rhis subparagraph
,"r"r,{rTl,"?i""ct ofhcer and unit, including ail or rhe rolowing
(i) Name and telephone numberofeach contact officer., (ii) Conractunittvn".ll:i:h.","ru:r"rfi.".l".n"r"nitsresponsible
lbr parole, registration, or county probation.
r"*.tll"l"i',ghililjl"i$*' orthe photosraph and ar'reasr a singre digir
^ (M) A geographic coord,inate for the parolee,s iesidence location
:il::"#:rX€eoeraphical rnr"'n'J""' si,,'#iirJl
",. comparabre
.1"".i?"1kil:H?jf"*::g1*d bvthis subdivision shan come rrom the
shall be based on rt" *u*.lirirhe
information obtained from each source
(3) Ail of the information required by this subdivision shall beprovrded uti li zi ng a comDu-ter_t::c"irrprir-i.un.r.i ji.u ro._ut u.uut"by a desktop computer svstem. rne trinsi","
"i,fri.,f ,i,r"rmarion shall becontinually available to tocal law *r"r."rr"ire;il,::;;* request.(4) The unauthorizea r3]3a13^or
1...,0, "iir*",*"lj.,ation aer.riUearn this subdivision is a violatron ol Section I I l{3.
**",9"TT)',JlI',iliiH,TJ :ir'* p'""i'l"n'"r raw, an inmare who is
u_"ruar,.siaJntJ;fi ;Jil"""#"if,i:,i[:"j'il#iff :fi lT."f",:;rn paragraphs (l) to (7), inclusive, "trruol"i.il" i;ili,r:..r." 667.5 or a
(PROPOSITION 83 CONTTNUED)* * * TEXT OF PROPOSED LAWS
felony in which the defendant inflicts great bodily injury on any person other
than an accomplice that has been charged and proved as provided for in
Section 12022.53, 12022;1, or 12022.9, if the victim or witness has requested
additional distance in the placement ofthe inmate on parole, and ifthe Board
of Prison Terms or the Department of Corrections finds that there is a need
to protect the life, safety, or well-being of a victim or witness.
(s)
andgad€s-1ro-ffiusivc:
Notwithstanding any other law, an inmate who is released on parole
for a violation ofSection 288 or 288.5 whom the Department ofCorrections
and Rehabilitation determines poses a high risk to the public shall not be
placed or reside, for the duration ofhis.or her parole, within one-halfrnile
of any public or private school including any or all of kindergarten and
grades I to 12, inclusive.
(lr) Notwithstanding any other law, an inmate who is released on
parole for an offense involving stalking shall not be returned to a location
within 35 miles of the victim's actual residence or place of employment if
the victim or witness has requested additional distance in the placement of
the inmate on parole, and if the Bo'ard of Prison Terms or the Department
ofCorrections finds that theie is a need to protect the life, safety, or well-
being of the victim.
@ (h) The authority shall give consideration to the equitable
dishibution of parolees and the proportion of out-of-county commitments
from a cbunty compated to the number of commitments from that county
when rhaking parole decisions.
€) (4 An inmate may be paroled to another state pursuant to any
other law.
(k) (r(l) Except as provided in paragraph (2), the Department of
Corrections shall be the agency primarily responsible for, and shall have
control over, the program, resources, and staff implementing the Law
Enforcement Automated Data System (LEADS) in conformance with
subdivision (e).
(2) Notwithstanding paragraph (l), the Department ofJustice shall
be the agbncy primarily responsible for the proper relehse of information
under LEADS that relates to fingerprint cards.
SEC. 21. Section 3003.5 ofthe Penal Code is amended to read:
3003.5. (a) Notwithstanding any other provision of law, when a
person is released on parole dfter having served a term of imprisonment
in state prison for any offense for which registration is required pursuant
to Section 290,that person may not, during the peiiod ofparole, reside in
any single family dwelling with any other person also required to register ,
p'ufsudflt to Section 290, unless those persons are legally related by blood,
marriage; or adoption. For purposes ofthis section, "single family dwelling"
shall not include a residerttial facility which serves six or fewer.persons.
(b) Notwithstanding any other provision of law, it is unlawful for any
personfor whom regis*ation is required pursuant to Section 290 to reside
wtthin 2000 feet of any public or private school, or park where children
regularly gather.
(c) Nothing in this section shall prohibit municipal jurisdictions
from enacting local ordinances that further restrict the residency of any
person for whom registration is required pursuant to Section 290.
SEC. 22. Section 3004 ofthe Penal Code is amended to read:
3004. (iz) Notwithstanding any other law, the parole authority may
require, as a condition ofrelease on parole or reinstatement on parole, or
as an intermediate sanction in lieu ofreturn to prison, that an inmate or
parolee agree in writing to the use ofelectronic monitoring or supervising
devices for the purpose of helping to verify his or her compliance with all
other conditibirs of parole. The devices shall not be used to eavesdrop or
iecord any Conversation, except a conversation between the parolee and the
agent supervising the parolee which is to be used solely for the purposes
of voice identification.
(b) Every inmate who has been convicted for any felony violation of
a "registerable sex oJfense" described in subparagraph (A) ofparagraph
(2) of subdivision (a) of Section 290 or any qttempt to commit any of the
above-mentioned offenses and who is committed to p.rison and released on
parole pursuant to Section 3000 or 3000.1 shall be monitored by a global
p os i t ioning sys tem for life.
(c) Any inmate released on parole pursuant to this section shall be
required to pay for the costs associated with the monitoring by a global
positioning system. However, the Department of Corrections shall waive
any or all of that payment upon a fnding of an inability to pay. The
department shall consider any remaining qmounts the inmate has heen
ordered to pay infnes, assessments and restitutionfnes,fees, and orders,
and shall give priority to the payment ofthose items before requiring that
the inmate payfor the global positioning monitoring.
SEC. 23. Section 12022.75 ofthe Penal Code is amended to read:
12022.75. Atry (a) Except as provided in subdivision (b), any person
who, for the purpose of committing a felony, administers by injection,
inhalation, ingestion, or any other means, any controlled substance listed
in Section 11054, 11055, 11056, 11057, or 11058 ofthe Health and Safety
Code, against the victim's will by means of force, violence, or fear of
immediate and unlawful bodily injury to the victim or another person,
shall, in additidn and consecutive to the penalty prorlided for the felony or
attempted felony ofwhich he or she has been convicted, be punished by an
additional term ofthree years.
(b)(1) Any person who, in the commission or attempted commission
of any offense specified in paragraph (2), administers any controlled
substance listed in Section 11054, 11055, 11056. 11057, or 11058 ofthe
Health and Safety Code to the victim shall be ptmished by an additional
and consecutive term of imprisonment in the state prison for fve years.
(2 ) This subdivision shall apply to the following offenses :
(A) Rape, in .violation of paragraph (3) or (4) o.f subdivision (a) of
Section 261.
(B) Sodomy, inviolation ofsubdivision (f) or (i) ofsection 286,
(C) Oral copulation, in violation o.fsubdivision (fl or (i) ofSection
288a.
(D) Sexual penetration, in violation o.f subdivision (d) or (e) of
Section 289.
(E) Any offense specified in subdivision (c) ofSection 667.61.
SEC. 24. Section 6600 of the Welfare and Institutions Code is
amended to read:
6600. As used in this article, the follow.ing terms have the following
mean i ngs:
(a)(1) "sexually violent predator" means a person who has been
convicted of a sexually violent offense against two one or more victims
and who has a diagnosed mental disorder that makes the person a danger to
the health and safety ofothers in that it is likely that he or she will engage
in sexually violent criminal behavior.
(2) For purposes of this subdivision any of the following.shall be
considered a conviition for a sexually violent offense:
(A) A prior or current conviction that resulted in a determinate
prison sentence lor an offense described in subdivision.(b).
(B) A conviction for an offense described in subdivision (b) that
was committed prior to July l, 1977, andthat resulted in an indeterminate
prison sentence.
(C) A prior conviction in another jurisdiction for an offense that
includes all ofthe elements ofan offense described in subdivision (b).
(D) A conviction for an offense under a predocessor statute that
includes all ofthe elements ofan offense described in subdivision (b).
(E) A prior cohviction for which the inmate received a grant of
probation for an offense described in subdivision (b).
(F) A prior finiling of not guilty by reason of insanity for an offense
described in subdivision (b).
(G) A conviction resulting in a finding that the person was a mentally
disordered sex offender.
(H) A prior convictionfor an offense described in subdivision (b).for
which the person ws.s committed to the Depdrtment of the Youth Authority
pursuant to Section l73l.5.
(I) A prior convictionfor an offense described in subdivision (b) that
resulted in an indeterminate prison sentence.
(3) Conviction of one or more of the crimes enumerated in this section
shall constitute evidence that may support a court orjury determination
that a person is a sexually violent predator, bu{ shall not be the sole basis
for the determination. The existence ofany prior convictions may be shown
with documentary evidence. The details underlying the commission of an
* * * Text of Proposed Laws I 135
TEXT OF PROPOSED LAWS * * *
offense that led to a prior conviction, including a predatory relationship
with the victim, may be shown by documentary evidence, including, but
not limited to, preliminary hearing transcripts, trial transcripts, probation
and sentencing reports, and evaluations by the State Department ofMental
Health. Jurors shall be admonished that they may not find a person a
sexually violent predator based on prior offenses absent relevant evidence
ofa currently diagnosed mental disolder that rnakes the person a danger to
the health and safety ofothers in that it is likely that he or she will engage
in sexually violent criminal behavior.
(4) The provisions of this section shall apply to any person against
whorn proceedings were initiated for commitment as a sexually violent
predator on or after January 1, 1996.
(b) "Sexually violent offense" means the following acts when
committed by force, violence, duress, menace, or fear of immediate and
unlawful bodily injury on the victim or another person,'or threatening
to retaliate in the future against the victim or any other person, and that
are committed on, before, or after the effective date of this article and
result in a conviction or a finding of not guilty by reason of insanity, as
erorriftd defined in subdividion (a): a felony violation of pata$apli{2ff
subdi.*@ Section 261, ffiiott
262, ffi 264.1, 269, 2B6, ffiion 288, 288a,
288.5, or s*ai;*o,rr€iomection-289.of the Penal Code, orsodoffifor
any
felony violation of Section 207, 209, or 220 of the Penal Code, committed
with the intent to conmit a violation of Section 261, 262, 264.1, 286, 288,
288a, or 289 oJ'the Penal Code.
(c) "Diagnosed mental disorder" includes a congenital or acquired
condition affecting the emotional or volitional capacity that predisposes the
person to the commission of criminal sexual acts in a degree constituting
the person a menace to the health and safety ofothers.
(d) "Danger to the health and spfety of others" does not require proof
of a recent overt act rvhile the offender is in custody.
(e) "Predatory" meais an act is directed toward a stranger, a person
of casual acquaintarrce with whom no substantial relationship exists, or dn
individual with whom a relationship has been established or promoted for
the primary purpose of victimization.
. (f) "Recent overt act" means any criminal act that manifests a
likelihood that the actor may engage in sexually violent predatory criminal
behavior.
(g) Notwithstanding any other provision oflaw and for purposes of
this section, notnote-than-one a prior juvenile adjudication of a sexually
violent offense may constitute a prior conviction for which the person
received a determinate term if all of the following appbes apply:
(1) The juvenile was 16 years of age or older at the time he or she
commitled the prior offense.
(2) The prior offense is a sexually violent offense as specified in
subdivision (b).
oFthissubdi.rision
(3) Thejuvenile was adjudged a ward of the juvenile courtwithin the
meaning of Section 602 because ofthe person's commission ofthe offense
giving rise to the juvenile court adjudication.
(4) The juvenile was committed to the Department of the Youth
Authority for the sexually violent olfense.
(h) A minor adjudged a ward of the court for commission of an
offense that is defined as a sexually violent offense shall be entitled to
specific treatment as a sexual offender. The failure ofa minor to receive that
treatment shall not constitute a defense or bar to a determination that any
person is a sexually violent predator within the meaning ofthis article.
SEC. 25. Section 6600.1 of the Welfare and Institutions Code is
amended to read:
6600.1. @ Ifthe victim ofan underlying offense that is specified
in subdivision (b) of Section 6600 is a child under the age of 14 and:the
, the offense shall
constitute a "sexually violent offense" for purposes of Section 6600.
ifiror
im-or
thc-offfiet
SEC. 26. Section 6601 of the Welfare and Institutions Code is
amended to read:
6601. (a)(l) Whenever the Director of Corrections determines that
an individual who is in custody under the jurisdiction ofthe Department
of Corrections, and who is either serving a determinate prison sentence
or whose parole has been.revoked, may be a sexually violent predator, the
director shall, at least six months prior to that individual's scheduldd date
for release from prison, refer the person for evaluation in accor{ance with
this section. However, if the inmate was received by the department with
less than nine months of his or her sentence to serve, or if the inmate's
release date is modified by judicial or administrative action, the director
may refer the person for evaluation in accordance with this section at a date
that is less than six months prior tb the inmate's scheduled release date.
(2) A petition may'be filed.under this section if the individual
was in custody pursuant to his or her determinate prison term, parole
revbcation term, or a hold placed pursuant to Section 6601.3, at the time
the petition is filed. A petition shall not be dismissed on the basis of a later
judigial or administrative determination that the individual's custody was
unlawful, if the unlawful custody was the result of a good faith mistake
of fact or law. This paragraph shall apply to any petition filed on or after
January I, 1996.
(b) The.person shall be screened by the Department ofCorrections
and the Board of Prison Terms based on whether the person has committed
a sexually violent predatory offense and on a review ofthe person's social,
criminal, and institutional history. This screening shall be conducted
in accordance with a structured screening instrument developed and
updated by the State Department of Mental Health in consultation with the
Department ofCorrections. Ifas a result ofthis screening it is determined
that the person is likely to be a sexually violent pred'ator, tha Department
of Corrections shall refer the person to the State Departftent of Mentai
Health for a full evaluation of whether the person meets the criteria in
t""tt?lrulon?
,,ate Departmenr of Mental Heatth shalt evaluate the person
in accordance with a standardized aSsessment protocol, developed and
updated by the State Department of Mental Health, to determine whether
the person is a sexually violent predator as defined in this article. The
standardized assessment protocol shall require assessment of diagnosable
mental disorders, as well as various factors known to be associated with the
risk ofreoffense among sex offenders. Risk factors to be considered shall
include criminal and psychosexuai history, type, degree, and duration of
sexual deviance, and severity ofmental disorder
(d) Pursuant to subdivision (c), the person shall be evaluated by two
practicing psychiatrists or psychologists, or one practicing psychiatrist and
one practicing psyqhologist, designated by the Director ofMental Health.
Ifboth evaluators concur that the person has a diagnosed mental disorder
so that he or she is likely to engage in acts of sexual violence without
appropriate treatment and custody, the Director of Mental Health shall
forward a request for a petition for commitment under Section 6602 to the
county designated in subdivision (i). Copies ofthe evaluation reports and
any other supporting documents shall be made available to the attorney
designated by the county pursuant to subdivision (i) who may file a petition
for commitment.
(e) Ifone ofthe professionals performing the evaluation prirsuant to
subdivision (d) does not concur that the person meets the criteria specified
in subdivision (d), but the other professional concludes that the person
meets those criteria, the Director of Mental Health shall arrange for further
examination of the person by two independent professionals selected in
accordance with subdivision (g).
(f1 If an examination by independent piofessionals pursuant to
subdivision (e) is conducted. a.petition to request commitment under this
article shall only be filed ifboth independent professionals who evaluate the
person pursuant to subdivision (e) coricur that the person meets the criteria
for commitment specified in subdivision (d). The professionals selected
to evaluate the person pursuant to subdivision (g) shall inform the person
that the purpose oftheir examination is not treatment but to determine if
the person meets certain criteria to be involuntarily committed pursuant
to this article. It is not required that the person appreciate or understand
that information.
(g) Any independent professional who is designated by the Director
ofCorrections or the Director ofMental Health for purposes ofthis section
shall not be a state lovernment employee, shall have at least five years
of experience in the diagnosis and treatment of mental disorders, and
1 36 I Text of Proposed laws * * *
(PRO
shai( include psychiatrists and licensed psychologists'who have a doctoral
desree in psychologv Th" tt;'i;;;;;tJtii i""f,i" this section also shall
upply to any prolessionals tp#;;;;;; t;; court.to evaluate the person lor
pliJ,t... "i."v other proceedings under this article-
(h) If the Stut" D"putt*Jnt of Mental Health determines that the
nerson is a sexually violent pt"Jut"i ut O"nned in this article' the Director
of Mental Health shall t"r*;J';';;;est for d petition to be filed lor
commitment under this u'titi;i; trt" "it""tv
designated in subdivision (i)'
copies of rhe evaluarion_repoits;;; ""y
;it"t t"iporting documents shal I
be made available'o tn" uit*ty designated by the county pursuant
to subdivision (i) who ;;^# t
-pliiii"" for commitment in the
suPerior court )urs with the(i) ll the county's designated counsel. c^ont
*.",r1',it*a.ii""' ;;;iii1"" r- "o"*tittn"nt
shall be fi.led in the superror
court of the countv in *hi"h;;;;;; *ut.t91yi!re1"of the offense for
which he or she was "onl.nii't.Jio
the jurisd_iction of the Department
of corrections. rrr" p"tition .r,-uir;;;i.i, and the proceedings shall be
il"ijia, ut Jft.. if,"'aitttiti "t-ney or the county counsel of that county'
The county boara or tup"ruitottlhaii designate ^either
the district attorney
or the county counset to .J;;;;;;;tl"itity tor proceedings under this
article.
(i) The time limits set forth'in this sectiqn shall not apply during the
'
first year that this article is operative'
(k; lfthe person is otherwise subjectto parole' a finding or placement
made pursuant to tt''i' u'ti"ii 't'u' *#iJrt-ii-i*"te"r*-th**i*-
the term of parole po"uuniio Article I (commencing with Section 3000)
;id;;f ;iiitie I orPait 3 orthe Penal code'
(1 ) Pursuanr to subdivision (d)' the altorney designated by the county
pursuant to subdivision (t;'tilii;;fi;l'r-r" stut" De-partment of Mental
Healrh ol its decrsron ,"g;rll;;,i'" niing of a petition lor commitment
ritftln f s days of making that decision'
SEC. 27. Section 6604 of the Welfare and Institutions Code 'is
POSITTON 33 CONTINUED)
of Mental
eommitrnent. The facilitY shall be located on the grounds of an institution
under the jurisdiction of the Department of Correctlons
SEC. 28. Section 6604'1 of the welfare and Institutions Code is
amended to read:
6604.1. (a) The tvrc=t'ear indeterminate term of conimitment
provided for in Section 6604 shall commence on the date uPon which the
court issues the initial order of commitment Pursuant to that sectton.The
amended to read:
6605. (a) A person tbund to be a sexually violent predator and
committed to the custody "f
;;:;" dartmeniof Mental Health shall
have a current examination il;;; her'mental condition made at least
once every year ' rn" on"oti)ioi'trnoti in'na' 'onsideration
ofwhether
the committed p"rron "urr"ni{y"*n"it'rn"
definition of a.sexually violent
';:;";;;;:;';;;;;"'ii"' io'aiiii"oi-"i"o'" to'o less res*ictive atternd'tive
'or an ttnconditio,ot '"1"o'u"'r'i"i"-li"
L"* interest of the person and
'conditions can be imposed tioi 'o'U adequately protec't the community'
The Deparrment of Mentat
'ii""i'i"ti"ii ni" thii period.ic report with the
court that dommilted 'n' ):"-"'"u'ii"this article
'The
report shall be
in the.form of tt declaratio^'n"ii ti"u b" p'"po'n'l by a professionally
aualified person A copy "J;h; ;;;";' shall be served on the prosecuting
"r,',iili,{,''",r""i,','1,i'i'1!",!j';t'{r:',:"Xi!"ii"J:',Zi:;#::::,',(::::,,
The nerson maY retaln. or lr
;;uu"pffii';d""iin'o "'p"'i"' iior. "lo"nu.t
p"rson to examine him or
her. and the expert o' p'o"iJio'l"u'r "ptison shall iuu" ut""tt to all records
***TEXT
concerning the Person'
(b)
OF PROPOSED LAWS
or the commi:tted Person'
(c)Ifthecourtattheshowcausehearing.determinesthatprobable
"^."t?i.,Ji""ili;;; il"il; ""-ilitila i""on'' diagnosed mental
disorder has so changed ,rr" il" ".-.rr"
is not a danger to the health and
safetv oI others and it ""t lik;l;t;"ngug" in tt*oully violent criminal
if i"i'"t rii*n".g"a' tnen irre iourt sh-allset a hearing on the issue'
(d) At the hearing' the committed^p"t:",1 thill,ll," the right 10 be
nresent and shall be entitled to tt" Utntni ofall constitutional protections
ihut *".. afforded to rtit "' rtlt "iti"-ln-itiut "ornrnit-ent
proceeding' The
attorney designated by tht ;;;i p;suant to subdivision (i) ol Section
6601 shall represent the sta'";;;'Jh;ll h;;; the right to demand a iurv trial
ffiffiil;t;;;.riu"a p".** "valuated
by expefts chosen bv the state'
The committed person also t'ft"fi'ft"t" tft; ;g'ht to d"-and a iury trial and
to hav6 experts evaluate h;';;il;;is 6r her behalf' The court shall
aonoint an expert if the, pers-on is indigent and.requests an appointment'
The burden of proolat tft" #ti"g''fttfi'be on tne itut".to ptout beyond a
reasonable doubt that th" ;;;iit;J;Jrson's diagnosed mental disorder
remains such that t" o' 'tt'
il'u aun'g"t io in" ft"ufth-and safety ofothers and
fTifttr ffi;;j" t.-t"riv "ror""ti
criminal behavior if discharged'
" i.l tl tfi'e
-court
or jury
'ules
against the comniitted person at the
hearins conduct"a pu"uu#to tuUdiiision (d); the. te^rm of commitment
liin:f,.ffi;;"ri'i'" r"' " " i ")''"'ii'"') p'T iod o'rffiveaffi rrom the
date ofthis ruling. trtt't tooii o'jury rutes foithe committed person' he or
she shall be unconditionad.;H;6 and unconditionally discharged'* -A
it,n" .t"* 'n"
the State Department of Mental Health has reason
to believe that a person;;;;;;6; as a sexuallv.violent predator is
no longer a sexuallv "i"h;;';;;l;t;i it shall seek judicial review of the
person's commitment putt;;;;i;;;;;"cedures sei forth in Section 7250
in the superior coot' "o- tittittt ihe commitment wa.s made' If the superior
court derermines trrat trre persln i;;;l;;"r "
."xually violent predator, he
* * *Text ot Ploposed Laws I 137
TEXT OF PROPOSED tAws***
E
E
or she shall be unconditionally released and unconditionally discharged.SEC. 30. Section 6608 of the Welfare unJ in.rirurion. Code isamended to read:
6608. (a) Nothins in this article shall prohibit the person whohas been commirted as i sexuall5l uior"nifrlaitJ. iiom petitioning thecourt for conditional release an+stilsequentir_,
""*"ir,fonal clischargewithout the recommenclatiou o...on.u.r.n." of ifr" Oi".tor of MentalHealth tf a person has nrellousJy nr"a-. p"tiri"-iJriinaitionat .eteasewithout rhe .on.r.r"n". of the clirector;#;;;;".termined, eitherupon,review.of the petirion or lollowing
" fr.",,"g. ifr.i,he petition wasr rvotous or I har the com m itted p.r.on,.".on J i,i;; ;;; ;;, ;; ;h;;;; ;;ihe or she would not be a danger.to others l" tfrrtlilr'r"t likely that heor she witl engage in sexuall/violent;;;;;;fi;;]oliif placed unde.supervision and treatmcnr in-ths commr',nil.;tre"i#:"urt shall denythe subsequent pelition unless lt contains facls upon which a court couldfind that the condition of the committe,l p.*#h;j';; changed rhat a
l.^1Tg.y.r, *"rr.a nre<t. Upon receipt ot a fi i.ri ;; ;rb.;q*nr petir ion troma comniltted person wilhoul the concurrence
"f ,fr. a"i..lar. the court shallendeavor whenever oossibte to .:ui1r" tf,. p"iiii* ""j
jetermine if it isbased upon frivoloui sround
h.u,i n;: i;;'p;;;;;:i;lffi ;",i;'i"l,i iili,]ii:Jnil; ffi ff :*lll,id i scharge u nder th is iu bdivisiJn .h.iiil;;;;;i;; i" "ritlJun* of counsel.(b) the court shall oive notjc.s of the hearing dare to the attorney
!;.1i_enut..a in. subclivision (il oi seciron i?oi, ii,. ?.,Jr',i"d or appointedattorney for the committed nerson, and the Dlrector o'.i-u"nrut Health atleast l5 court days before the hearing date.
.- - (c) No.hearing uponthe petition shall be herd until the person whors committed has been under commitnr"";f;;;;;ent and care in afaciliry designarecr bv rhe D,irector "r rta."iriH""iirr'ii,
"", ress rhan oneyear trom thc date of rhe order otcommii;;;,.'"-"" -'
(d) The cour.t shall hold a hearing to deternrine whether tlre personcommitted would be a danger to the h;lth ,"A ,"iliv'"r *hers in that itis likely that he or srre *iriengage l,; ;;;ili;;Jiit iri,ninur behaviordue.to his or_her diagnosect-mental disordei ti;;;;; supervision andtreatment in the community. If the ""r.i.ii'n" n.".iig oetermines.thatthe committed p"..on *ouid,n"t b" ; l;;;;;';"
"if,ir'J,O* to his or herdiagnosed mental disorder.while under sufi".""f""'r"i treatment in thecommunity, the courr shall order.rhe .;;;i;,;;;;r* placed with anappropriate forensic conditional ..t.u.. p.ogru. "i".""0 by the state forone year' A substanriar portion orrhe r,'.,.-1f.*i5J'r"iensic condirionalrelease program shall include output;"nt,upJ*i.ioi ind treatmenr. The
::":1 .h"tl rerain jurisdiction of_tire p".r;;;;;,,s"h",it n " cou.re or th"program. At rhe end otone vear. rhe courr.hrii h;ff;;;;ing ro determineif the person shourd be uncondirionaty ,.r;;.;;"f;';inmirmenr on thebasis that, by reason of a diagnoseJ ;;;;;;'.d*, i! o. ,r," i* not udanger to the health and safety"of "th.; ; il;;;Jiit'titly tnut n" o. rt .will engage in sexuallv violens 61i11ina1 b;h;;il;il;irt shalt not makethis determination ,niil th".person lras ."rfr"larir..it one year in thestate-operated forensic conditionut."t"u." p-jiarn. ri"
"or., rrrull notifythe Director of Mentat Healrh of rhe hearin! j;;; " ' "" '
(e) Before placine a conrmitted p.rron in a state_operated lorensiccond it ionat retease proirarn,l".t";,n*
1,; o;;;,i';j;1","r designaredby rhe Srare. Depirtrienr of Mentat U."rlit"-,irii -submit
a wrirtenrecommendation to the court^stating *frl"}, fo.*r]" .llrditional ."l"are
l1:9.u15.ry*t appropriate fo. sup"e.visin! il;;;; the committedperson. If rhe court does not.accept rh. ;";;;;;;;r;g."* director,srecommendation, the court shall specify ifr" ,...Jr"", ,easons for itsorder on the record. The orocedures a""J.il-.a l"-i""r."_ 1605 to 1610,inctusive, of rhe penat Code shall "ppli;;iloi;;;:"* in the forensicconditional release program.
(f) If th€ court determines that_the person should be transferred foa state-operated for.ensic conditional ,.t;r.;;;;;;, the communityprogram directol or his or her.designbe, .il;ii;;k" rhe necessaryplacement arrangements anO,,wlilrin zl?;;
"d ."*;ng notice of thecourt's findins, rhe person ,r,att be ptaceJii;;;;;;;,,ti, in accordancc
X'jLt|"n["JlL'# andsupervision pr""'"r".'g""l'"ui..' ro. no, corng .o
(g) lf the court rules againsl the commilted person at the trial forunconditiorial release from copersononoutpatientstatus*Tl jilitJilff
H:T:J"r.,iil:",1;:,"ATJx.,fTitle 15 (commencing with Section looq;f;;i#il;enal Code.
138 I Text of proposed laws* * *
(h,) If the court denies fhe nerir i^- r^ hr^^^ +L^ - -forensic conditional."r"l^t^'l-:n"tftiontoplacetheperson^inanappropriatedi."h".s;l;;;;;;:#i:,1,1;-';l"T'i,3:i:lJfi ii;;iffif;l"#year has etapsed from ttre aate orrn6 jeil;:- " ""-
(i ) In any hearine authorized by this section, the petitioner shal I havethe burden ofproofby-a preponderance
"frn" ""i0"n"1,.(j) Ifttre petition for bonditional release is not made by the directorof the treatment facijitv to which tfr. p".."" i, ."rnrni,r"d, r,o action onrhe peririon shall be taien Uy,f," .ou.r'ri,froui"n.ii'oirurnin, the written
:"::$,jiilIt::'ff"Tffi ;ii*,'::tT,'Ji:1ffi;;;;;;.se*ion shall nor count toward the term ;f;;#ffii under this arricleunless the person is confined ln u toJ.o i;,,ilil;:"nditional releaseprogram, in which case the time spenr i; ; i";i;;"ility shall counttoward the term of commitment.
SEC. 31. Intent Clause r
It is the intent ofthe people ofthe State ofCalifornia in enacting thismeasure to strengthen and iTpr:v.e t[e Ium tt ut prni.f, and control sexualoffenders' Ir is also the inteni of the r.opr. oi"tt"rttuti of california thatif any provision in this act,confli.,. *iiil'un"y "irr"i'pl""iri"" of law that
ll"_"id.., for a.grcater penalty or longer period of imprisonmenr the latter. provrsion shall apply.
SEC. j2. Severabiliry CIause
Ifany provision ofthis act; or part thereof, is for any reason held to beinvalid or unconstitutional. th";.;;i;;;;;ilil;: fi'il,ot be affected,but shall remain in full force anA effect,"aiJi",f,i. .Jrf," provisions ofthis act are severable.
SEC. 33. Amendment Clause
The provisions ofthis.act shall not be amended by the Legislatureexcept,by a sratute passed in "uct tous"iyl;il;1ffi. entered in the.;ournat, two-thirds of the membership "i#h;;;; .Jn"ur.ing, o, uy istatute that becomes effective only *h;"upp.;;;lfdrJ **.r. However,
:?i fu::TiTll::,lX';TiX,,n. d";;i;;;i;t-# i,",.'""a rhe scopeilil;'.;fi ,.i,ffi
:'.ffffi ;.|ff i;l5i3il';o'r'"n'urti",n.ouiali
PROPOSITION 84
., This initiative measure,is submitted to the people in accordance withthe prorisions ofArticle II, Section g, ofthe California Constitution.This initiative measure adds.sections to the public Resources Code; .
lffi i:f:iil:l':;,"JTJ;:."0""d t" b;;l;;j;; ;;;; in it"tii tiie ii
PROPOSED LAW
,o."ulfatto* l. Division 43 is added to the public Resources Code,
DIVISION 43. THE SAFE DRINKING I4/ATER, WATER QUALITYAND suppL\ FLooD coNrRo;, i;;;;'eii'coesrer
PROTECTION BOND ACT OF 2006
. Cu,cprn l. Goutntt pnowsroNs
7500t. This Division shall be.known and ntay be cited as the SafeDrinking lrater, water o,otity^ora' iriiti,"f.i"l"i iJ""t, River andCoastal protection Boncttrct oj2006.. ' r' - -'-' -v't
,,","3X!i0,,[!,f
"i:::':r:{?'*)n'io7'aonaa"'hrethat.p.rotectinsthestate's economy, ona tn" "nr!llJr;:::*"'is
vital to tt'" puott" h"otti, tii
^,_, ,7-t001 5. The people of.Caltforniafurtherfind and declare that thestate s walers are vulnerable lo contaminatior'ty iorg"rou, bacteria,polluted runolf toxic chemicats, drr";"'];;;
"i,,ii,ri)ni" n"ods and, ! : ^!:* ", !',"{,. g r o w i n g p o p u t a, i ; ;; ii; ;e/b;,", ri"' ii n^
r,, b e t a k e n t oensure saJb drinking water and a ,"tiott",ippty oj*trterJorfarms, citiesand businesses, as well as to .protect c"tyiirir:i lir"lir,' Iok"r, streams,beaches, bays and coastat watZrs, for this Lii jr,)r" i"ir"rnrr.75003. . The peopre of carifornio furtn"r pra ini dectare that it is
***TEXT OF PROPOSED LAWS
(PROPOS ITION 84 CONTINUED)
necessary and in the public interest to clo all of the following:
(a) Ensure that s afe drinking water is available to all Californians by :
(1) Ptoviiling 7o' n*"'gnn"y assistance, to commt'mities with
"
ontami'inoted tources of drin ki ng wote r'
12) Asiisting smoll "omm'lnitie'
in making the improvements needed
in their water systems to "*"'""i""ii
p'otecltheir diinktng water froht
contarnination.
(3) Proiiding grants and loans for safe drinking water and water
po I I ution Pireven tion P roi ec t s'
4) Protecting the woter quatity of the Sacram'ento-San Joaquin
o a, "',' I *,, y",
"
u', "i i i' i i * i's ia rc r io r 2 3 m i I I io n Ca I ift r n i a n s'
(5) Assisting each regii;'of thA;turc in it'lproving local water supply
reliabilitY and realer qualttY
/61 Resolvins water-rjelated conflicts' intproving lo'cal and regional
*",";:;i:;;fr;i'i"v ona '"au"ing
ritiance on imported water'
(b) Prorcct the public from" catastrophic, foods .by identifying and
mapping the areas most "' 'l'i"'i")"ii's'"naie1ii1121^let'ees
and flood
control facilities, and re(tuc;A thi long-term c1s,t.s o[Ilood mqnagemetlt'
",7;;;i;; i;;;;;;'fooa 'i'r' on'd"^o*i^"i'ing pubtic benefts bv planning'
' ;;-;#; ;;;;;iementing i ulti- obi ect iie fo o d. c.orri.dor proi ects "
(c) Protect the 'iu""', lok"' ond 't'"o*' oJ the -state from polltttion'
ur, )i'r"ii'i,oiiiv' ona in'ouition offsh and witdtife habitat'
"""" -"(i) p-iut the beaches' bays ind coastal waters of trhe stdte for
future generalions'
(e) Rdvitalizing our commttnities and maki-ng them more sustainable
and livable by inverting in iouni'loni-ut" ptorynn-g, Iocal parks and urban
aualified to tlo business in Califutnia' and qualified under Section
'
'siol irjlu of the Internal Revenue code'- ' (i)'' "ir"rurvation" means rehabilitation' stabilization' restoration'
clevelopment, ord ,"i;on't'u"tin'-on' any combination of those activities'
(m) "Protection" means those actiont'.'necessary to prevent harm
or damage to persons, p-p)"iy o' tnfttral resources or those actions
necessort, lo allow the contintt"'i u"i" o-na i'1oymeil ofproperty or natural
';;:;i:;:';;;;;i'ai' *q'i'i;o'n-' d.'ntop*int' restoration' preservati'on
and interPretation
(n) "Restorulion" medns the imp,rovemcnl ofrP,hlsical sftuctures
or facilities and, in the case of naturil systems and landscape features
i,iludes. but is not timitei t1";"';i;;t'Jb' the control of erosion' the
control and elimination oJ ex:;i:;;re"i"t''i*t"i'wa b'urniig' fuel hazard
'r;)',i,fi', fincing out tireois to'existing or restore.d-natural resources'
'itri')',1^ir",,",r7.o'a otn'l'-pitant anct'u'itdlifu habirar improvement to
increas€ the natttral 'y""'' ioi'" of the property' Restoration proiects
shall inclucle the planning, monitoriig and,reporting necessary to ensure
i,rir""rt"tti i*pt"mentatiin of the project obiect':es:
(o)"Secretary" means the Secretary-.of the^Resources Agency'
(p) " State Board " nteais tlte State llater Resources Control Board'
75009. The proceedi of bonds issued and sold pursuant to th'is
division shall be depositedTn"r;;i"f. Drink.ing llat.er, l{ater Quality
""iri'iiri,i o^i,l (o''*i"ni;')l *'i Coastot Prrotection Fund of 2006'
which is hereby created. ;";;i "t specifically prouided in this division
the money shall be o"itoii" io')piiipii"'ni Lv .the .Lesislanre'
in the
manner andfor tn" pu'po''i"i"|[i'n"i' this division in accordance with
greening
75003.5. The people ofCalifornio furtherfnd and-declare that the
n-*,i"in"ptprtatioi oi the ""o'' ina the impacts ol climate change pose
sis,nirtcant challeng"s Thns"'Jh'"ti')sit ^"iIt""!:.1:::d-'h'o"sh
careful
planning and th'rough improvements in Iand use and waler managemenl t hol
both reduce contributions ,r'ilit["i *"riirg.and improu-e
^the
adaptability
of our water and food "oir'ol 'y't"^'' Improvements' include belter
i,i[ *,'i "r- Lf *,,J'- " pptv'-
-
*ot" i qua I itv'' f o od'c o nt rol a n d ec o s vs te m
protection, as well greater w"i*' "l"n"il'iy and conservation to reduce
energY consumqtion'
75004. It is the intent ofthe people tha.t investm'ent ofpublicfunds
pulsuon,-ro this division should result in public benelts'
75005. As used in this division' the Tollowing tertns have the
following meanings: -.t
(a) "Acquisition" means the octluisition ofaf[e interest or any other
irrilll ir" riti'
"
i'"p *'y i"''t"ii"g'eas e menti' lea s es and development
rights.' ---
(U) "Board" means the lfildiife Conservation B,oard'
(c) "Califurnia Water Plani' means the Califurnia Water Plan
upat),7 nrit"ii, 160-05 and subsequent revisions' and amendments
-'--
(O) "Delta" means the Sacramento'SanJoaquin River Delta'
(e) "Department" means the Department ofllater Resources'
(fl "Development" includes' iu' i' l,o' Iimited' to the physical
improvement o7,"ot p'op"'iy' in"i"a*s the construciion of facilities or
structures dtv with a median
,",,:fldo'?;:::;:','!!,'lr"f{{fi"":ii;:"":;"i':;#f':'::i";;:":;;;;a'
disddvanraged "o''^'ni'y:" ^Ji" o""oi''unit1' v)ith o medidn household
in-"ii" t"ti tnon 60ok of the stateu'ide average'
(h) "Fund" ^"on'''h"
Safe Drinking lhater' Water Quality a2/
srppii,'no'i io't'ol' Ri;:;;;;; coastat Piotection Fund of 2006'
"ii'*,ou'"o''
inchtdes' but is not lint-ited^to' a visitor setving
amenitv that educates t";";;;;;;;:'ttes the 'ig'ifcance
and value of
natura;I, historical, and 'utii''ot resources in a way that increases the
understanding and enioyment of these resout'ces an'd that mqt utilize
the expertise o1'o 'o'"iii'i ii o'i"' tp""iolist skillecl at educational
the followi ng schedu le :
h) The sum of one billion f ve hundred twenty fve ni'llio'n dolla'rs
,st.i\|oiti,biil"f7' i"i" i'i'ii'ng *o'n'' water quutitv and other water
';:t*;riwrtilll;l*t;:,::'t;*:@
water managernent in accordance with the provisions of (
@) The sum of nine hundred t$'enty eight million 'dollars
(ss28.000,000) for the pl"'"'"ii"i of riueri' Iakes and streams in
';";;:i;r;" u'irh"the provisions of Chapter'l
(e) The sum of lbur hunclretl ffty milli.on clollars ($450'000'000)
lorforest and wildliJb '""''i"'i"""ii'-i"o"lo"'
with the provisions of
Chapter 6.
(fl The swrt of fve hwtdred forty millio'n dollars ($540'000'000)
fnr th.e nrotection of U"o"il' troys'"ini "oostal
waters and waters'heds in
ti"co",latrrr"
"'ith
tie provisions of Chapter
@) The sum offve hundred million dollars ($500'000'000) for state
parks anil natttr" ua""otion iailiiiu' in or."o'.donce.with Chapter 8'
ft) The sun of Jive himclrnd eighty mil,lion dolla'rs ($580'000'000)
for suslainable contnntnit'i)s"|ti "t7*i'" chdnge recluction proiecls in
"n""ordon"e with ChaPler 9'
Cn'qprnn 2' S'qrs DnrNxruc WrEn 'arvo Wrffi
QuturY PRIJECTS
. 75020. Tltis chapter is intended to provide the funds necessaf)' to
acldress the most "riti"ot "roi),
,'r"it "f
rii t** inchtcling the provision of
sufe drinking water to "ll ;;ii!b":;;"";' rhe protection.ofwotet quality and
the envitonmettl. and the i*pi'o'"'"n'uTwater supply reliabilily'
75021 @) fne su- of ten miilion dollars ($10'000'000) shall
be available rc tn" o"pori,n1ni o7 inonn se.rvic.es for srants and direct
exocnrlitures to 1"na n":'i)')i"a urc:.n!a.::ion ti ensure that safe
";,1;";;;:,;';;,":,::,iiii"' '''i"'iirabte
to itt Catifornians' EtisibLe projects
in"lua"l, ou, o," iit Iimited to' the 'following:
(t ) Providing alternate watit' supplies including bottled water where
,r"rr)rnry to Protit Public health'
(2) Intprovernenrs in existing walet's))slem-s trccessary to prevent
contomination o, pro"iai"' o,"i'"r"rir,,lrit of ia,b drinking water including
replacernent u'ells
(3) Establishing connections to an adjace'nt ludter system'
(4) Design, purchatse' installation ancl initial operation costs for
water) ti'eatmeit equipment and systems'
* * *'Text ol ProPosed taws I 139
interpretation
0) "Local conservation corPs
public agency or nonproJtt organtza
Section 14406'
" means 0 Program oPerated bY a
tton- ihLat mLets''ihe requirenents of
(k) "Nonprofit orgdnization" nxeans dny nonprofit corPoration
E
75026. (a) The sum ofone biilion doltars ($t,000,000,000) shattbe available to the department for gran*joi'i_liii',nr, assist localpublic agencies to meei the long term.water ieedjs ojrii-rnr" n"uding thedelivery of safe drinking wate.iana n" p,rot""iin"'of ,ioie:, quotity and th"
1-lyironment, E!igiblg erokcrc.,mus t implement integrated regional watermanagement plans that meet the requiiements ojrni, ,:"ir.n. Integratedregional water managemenr
,plans .'shall ii"r,k""riZiar"ss the majorwater retated obiectives and.'.1o1flyx .1ltinir^'ii"l"[,]i,' "orr,a"r ail ofthe resource manapement strategi.e! identified in in'"',iotiyorria WaterPlar,t. ,an! use an iitegrated, nulti_beneft'oiiroor'n',o"proiuct selectionand design. ptans shiil inctude perforin;";;;;;;;r;;:"nd monitoringIo document progress toward me.Lttig'riri ;rj)';;;;;'"r)oi""u that maybe funded pursuant to this section lnist b";;;;;;;;r; *ith an adoptedintegrated regional water management plan or its funrciional equivalentas defned in the departme,lliy,3sr:rii ir"r,"'r,it"ir? ManagementGuidelines. must provide multiple bZnefrc, ,r'a ^^', iriiia" .r" or moreof t h e fol I ow i ng p roj ec t e I e m ents :
^""^,!!) Water supply retiability, water conservation and water useeficrcncy.
(b) Grants and expenditures shall not exceed g250,000 per project.
1c) -Direcr expenditures fo, ,n" purpor", o/lii, section shall be-
i:-"!p, from cont.rqcrirg ori pro"rii{ri-r"qlirir"nts to the exten!necessary to take immediate aciion to protect pu'iiic h,eatth and safety.75022. The sum ofone h undretl eighty million clollars 1$ ! g0.000,000)shatt be avaitabte to tie Deparrmrr;Zi'i;;;;;"-"'r:i"r, 1o, sranrs forsmall community drinking. water .system infrastructure improvementsand related actions to meet safe drinking ,oi"i liorliorar. priority shallbe given to proiects that. address "n"iri""i-.ri'rilate contaminants,other heatth hazards and. by whether ;;';;.;;r;;in is disadvantaged
1:t"*u.l! disa.d;vlntaged
-Special consiier.i_, ,iit be given to smaltcommunities with rimited fininciar.resources." ri[i[t"',""ipi"nts incrudepublic agencies and incirporated .mutual **i'Jo^por,^ tha! servedisadvantqged communitiis. fn" o"pori^nir'""f"iii,,O Services maymake grants for the ournise "f ,fir,;;;;;;i;'r,ii,i'Ii,a,", and to meitthe et igibitity r"q, ii."it, for" i "orr,rl rZii)" si"ri. ;"rr,rr"tion srantsshatt be timited to $s,000.000 per.;-r.r,*;;;;;;'rniie than twenty lvepercent of a grant mav be awarded'in;dra;c;";io'riutr't'up*ainres.
TheDepartment ofHealti Services.may uxperd upio $S,OO0,OOO oytheyundsa I I o c a t e d i n t h i s s e c t i o n fo r t"
"
hn i; o t ;;; ;;; o,{" ;; ; ;'t,*, b k c o m muni t i e s.7502i. ,For the ouroose of providing th" ,tit" share needed toleverage lederal funcls'to'assist .co'mmunitii, ir'p"ririaing safe drinkingwater, the.sum of ffty mirion.dorars tsio-oii'0,5'ui1'"r,ha!t be avaitahteJor deposit inro the safe olyklns wri; it;;"i;;Jiring rura (Section116760.30 of the Heatth and Safe,y Crill
75024 For the DurDos.e of providing the state share needed toleveragefederalfunds to as'sist co*irriri"r'i, ,'rnir['in^r r11*structureinvestments necessarv to prevent pollution.ofdrinkiig i,otnr rour"nr, th,sum of eighrv miilion dorr'ars oao.ooo,itbiitt"i"ii"ii'irir"t t"for depositinto the State Water pollutir
the water Code). cn control Revolving Fund (sectiin ii:zi-tt
75025. The sum of sixty.mil!.ion-dollars (g60.00(.),000) shal! beavaitabte to the Departient of Heatrh S";;;;;; j;";;"rrroor" oJ.toansand,grantsfor proiecrs ro previn, "i r"ari
":")ii^tr'itioln o1 grorrd*ot",lhat serves as a source of drinking *",*: ii"'"'o"pir:tment oJ. Heatthser.uices shall require repalym.entfor costs that are subseq'uently recoveredJrom pqrties responsibte kr the iontamination.--T-h"'G)lr'to,rr" *oy "ro",Iegislation necessary toimplement this section. - --o'-'
(4) Proposals that contribute to ihe attainment of one or more of theobjectives of the CALFED Bay_D'"tti i;rr[rr*;.""''"',
(5) Proposats that address statewide priorities.
(6) proposals that :!!::ss .:.ritical,water supply or water quali4yneeds for disadvantaged communities within ;i" ;;;;;(c) Not more than Sok of th.e funds providediy this section may be
i :^"!. ( : r*: t', o r dire c t exp2 n di,;,; ; f; ; i;- ;; *i ;p m e nt, up d a t i n s o rtmprovement of integrated regiorol roi",
^onog"iirit ptorr.
(d 1 The department .s.hall.coordinate th"|ro,irion, oJ.,this secrionwith the program provided in.Chap,", s;ib';;;ri;;;i.', o1,t " trater codeand may implement this section irns ";";i"i;r;"ted Regional WaterMan age me nt C uidel ines.
ry 0? 7. (a ) Th e fun d i n g provi d^ed,in sec t i o n 75 02 6 s h a t r be a I I o ca tedto each hydrologic resion .ai identifed in ,n" Criit"rri" Water plan andlisted.below. For the South Coor, irgion.'ii"ii1*i*"r, shall establishI h ree s u b- re s i o n s t h a t re fl ec, h l s;;;;;;';riiii .![,"^ o
"
a r, t he s a n taAna River wotershed, aia fi" ti'irg;f;_V"lr'/u[o"Lruo,, watershedsrespectiverv, and ailocate.fu_nds to ihose tri-;;;;";r. The North andSou t h Lahon ta n resion s s ia t r
.
be,;";;;; ";;r;' i;;i;, for the pu rposeoJ attocating funds. but ,h" l"oz!i:ii.;;; ;;;;f;,"parate regionattifn#!:^f;:uided in section zsozo 'nailL" iii';i;a o""o,aiig'io ii"
(I) North Coast
(2) san Francisco Bay tr:J:,,fJl,,. (3) Centrat Coryt $52,000.000(4) Los Angeles sub_region g215,000,000
(5) Sailta Ana sub_region $1U,000,000(6) San Diego sub-region $gt,000.000(7) Sacramento River $8i,000,000(8) San Joaquin River $57,000,000(9) Tulare/Kern (Tulare Lake) $OO,OOO,O1OO
(10) North/South Lahontan $22,000,000(1I) Colorado River Basin $6,000,000
(1.2) lnter-regional/llnallocared $100,000,000
(b)
.The intenegional and unallocittedfunds piovided in subdivision(a) may be expended directty or granted ;y;i;;;p;;;;*ent to addressmutti-regionalneedsorissuesrlriot:",*ii"rig;;;i";,1;'."
75028. (a) The deoartment.shal! allocate grants on a tompetitivebasis with i n each ide n tiied hyd;;st; ;;;;;;' ;,";;;::;;,,, oursua nt to.S;ctiyn ZIOZI. The depLrtment may estaitish ,toniorir.ord proceduresJor rhe developmenr and orprouol. of lr"rt p;;j;;;'ie'lection processeswi,thin hvdrotogic regions o'ra trui"gion" ii"i,ii"i't, section 75027.The.department shalt defer to approved local project selection, and reviewproject.s on ly for consiste ncy w'i th th" prr;;;;; ;ii;ii,i r' rroz a.
" ^ --
(b) If a hydrologic regio.n or sub_region identified in Section 75027does not have any adopted olan that neirs the r"-irii"*"ru ofSection75026 at the time of the dei,
"r;";;;;;,;:;;";r;;:;;::::;r,7::;::;,:"';:;,,:;;,r;:,";:i:f*:,!;to another region but will remain unalloiated ,;;;;;i ;;;; ,;;;;;';;adopted plan from the hvdrotegi" ,"gio, o, ,;rilr"[ion i "utmitted to thedepartment.
TEXT OF PROPOSED LAWS***
capture, storage, clean-up, trbatment, and
(8) Planning and implementation of multipurposefood managementprograms.
(9) Itatershed protection and management.
(10) Drinking water treqtment and distribution.
(:,t ! _Ecosystem and fisheries restoration and protection.(b) The Department of Water Resources shall give preference toproposals that satisfy thefohowtng criteria
Proposals that effectiuely integra.te water management p;"ogramsand projects within a hvdrotogic regioi idenrifed in t:heVallftrnia lltarcrPtan; rhe Resionat naier o,itity i,,,_:i-;;;;;;;;'ioni, subdi,i,ion orothe r reg ion or s ub-region"s p"cifi"o I ty id"itifn) Ly1f"' i"p" n ^"r,.(2) Proposals that effeatively integrat"'*ot", *orog"ment with landuse planning.
, (3) Proposals thar effectively resolve significant water_relatedconficts within or betwee, iLgrorr.
(2) Storm water
management.
(3) Removal of invasiue, non_native species, the creation andenhancement of wettLnds. an.d.the,acquiiit;,;r,i)rli",,#: ,nd restorationof open space and watersihed lands. " " :'"'""'*"'
(4) Non-point source pollution reduction, management,endmonitoring.
(5) Groundwater recharge a nd management projects.(6) Contaminant and salt removal ,i_ufn )""io*oiron, desalting,
ff!,,',:l:;",;";,Xent .technotogies
,nd ;o,;;;y;;;"'
"t'i""i",*"a ,ater for
(7) Water banking, exchange, reclamation and improvem"ent ofwater quality.
140 I Textof proposed Laws* **
E
75029. The sum ofone hundred thirty miilion dollars (S I 30,000,000)
:'
(PROPOSITION 84 CONTINUED)* * * TEXI OF PROPOSED LAWS
shall be available to the department for grants to implement Delta water
quality imprgvement projects that protect drinking water supplies. The
department shgll require a cost share from local agencies. Eligible
projects are:
(a) Projects that reduce or eliminate discharges of salt, dissolved
organic ct)rbon, pesticides, pathogens agd other pollutants to the San
Joaquin River. Not less thanforty million ($40,000,000) shall be available
to implement projects to reduce or eliminate discharges of.subsurface
agricultural drain water from the west side of the San Joaquin Valley for
the purpose of improving water quality in the San Joaquin River and the
D9lta.
(b) Projects that reduce or eliminate discharges of bromide,
dissolved organic carbon, salt,,pesticides and pathogens from discharges
to the Sacramento River.
(c) Projects at Franks Tract and other locations in the Delta that
will reduce salinity or other pollutants at agriiultural and drinking water
inlakes.
(d) Projects idenilrted in the June 2005 Delta Region Drinking lYater
Quality Management Plan, with a priority for design and construction of
the relocation of drinking water intake facilities for in-delta water users.
75029.5. The sum offifteen million dollars ($15,000,000) shall be
available to the state board for grants to public agencies and non-proft
organizations for projects that reduce the discharge of pollutants from
agriculiural operations into surface waters of the state.
'Cn,qpren 3. Ftooo Cournor,
75030. This chapter is intended to provide the funding needed
to address short term food control needs such as levee inspection and
evahntion, floodplain mapping and improving the effectiveness .of
bmergency response, and providing funding for critical immediate food
control n4eds throughoutthestate. It is also intendedto provide aframework
to support long term strategies that will require the establishment ofmore
effective levee maintenance pi,ograms, better foodplain management'
and more balanced allocation of liability and responsibility between the
lederal, state and local governments.
75031. The sum of thirty million dollars ($30,000,000) shalt
be available to the department for the.purposes'offioodplain mapping,
assisting local land-use planning; and to avoid or reducefutureflood risks
and damages. Eligible projects include, but are not limited to:
(a) Mappingfoodplains.
(b) Mapping rural areas with potential for urbanization.
(c) Mapping and identification offlood risk in high density urban
areas.
(d) Mappingfiood hazard areai
k) tJ pdating outdated fooclplain maps.
(fl Mapping of riverine fioodplains, alluvial fans, and coastal flood
hazard areas.
(g) Collecting topographic and hydrographic survey data.
75032. The sum of two hundred seventy five million dollars
($275,000,000) shall be available to the departmentfor thefollowingflood
control projects:
(a) The inspection and evaluation of the integrity and capability
of existing flood control project facilities and the development of an
economically viable fiood control rehabilitation plan.
(b) Improvement; construition. modifcaiion, and relocation of
flood control levees, weirs, or bypasses including repair of critical bank
and levee erosion.
(c) Projects to improve the department's emergency response
capability.
(d) Environmental mitigation and infrastructure relocation costs
related to projects under this section.
(e) To the extent feasible, the departnlent shall implement a multi-
objective minagement approach for fioodplains that would include, but
not be limited to, increased flood protection, ecosystem restoration, and
farmland protection.
75032.4; Notwithstanding Section 13340 of the Government
Code, thefunds allocated in Sections.750il and 75032 are continuously
appropriated to the departmentfor the purposes ofthose sections.
75032.5. The sum offorty million dollars ($40,000,000) shall be
available to the department for Flood Protecti.on Corridor projects that
are consistent with Water Code Section 79037.
75033. The sum of two hundred seventy fve million dollars
($275,000,000) shall be available to the department for fiood control
projects in the Delta designed to in:crease the department's ability to
respond to levee breaches and to reduce the potential for levee fai!ures.
The funds provided by this section shall be available.for the following
purposes:
(a) Projects to improve emergency response preparedness.
(b) Local assistance under the delta levee maintenance subventions
program under Part'9 (commencing with Section 12980) of Division 6 of
lhe Water Code.
(c) Specialflood protection projects under Chapter 2 (commencing
wilh Section 12310) ofPart 4.8 ofDivision 6 ofthe l(ater Code, including
projects for the acquisition, preservation, protection and restoration of
Delta lands for the purpose offiood con*ol and to meet multiple objectives
such as drinking water quality ecosystem restoration and water supply
reliability.
(d) All projects shall be subject to the provisions of Water Code
Section 79050.
75034. The sum ofone huntlred eighty miltion dotlars ($ 180.000,000)
shall be available to the department for the ptffposes of funding the
state's share of the nonfederal costs offlood conbol and flood prevention
projects for which assurances required by the federal government haie
been provided by a local agency and which have been authorized under
the State Water Resources Law of 1945 (Chapter 1 (commencing with
Secition 12570) and Chapter 2 (commencing wiih Section t2639) ofPart 6
of Division 6 of the llater Code), the Flood Control Law of 1946 (Cftapter
3 (commencing with'seation /,2800) of Part 6 of Division 6 of the Water
Code), and the California lilatershed Protection and Flood Prevention Law
(Chapter 4 (commencingwith Section 12850) of Part 6 of Division 6 of the
Water Code), including the credits and loans to local agencies pursuant
to Sections 12585.i and 125851, subdivision (d) of Section 12585.5, and
Sections 12866.3 and 12866.4 of the Water Code, r)nd to implement Chapter
3.5 (commencingwith Section 12840) of Part 6 of Division 6 of the Water
Code. Projecis eligible for funding pursuant to this section shall compty
with the requirements ofAB 1J47 (Statutes of2000, Chdpter 1071).
Cu.qprnn 4. Srarnwoo Wsroa Puwuruc AND DESTGN
75041. The sum ofsixtyfive million dollars ($65,000,000) shall be
available to the department for planning and feasibility studies related
to the existing and potential future needs for Califurnia's water supply,
conveyance and fiood control systems. The studies shall be designed to
promote integrated, multi-benefit approaches that rnaximize the public
benefits of the overall system including protection of the public from
foods, water supplv reliability, water quality, andfish, wildlife and habitat
protection and restoration. Projects to befunded include:
(a) Evaluation of climate change impacts on the state's watel
supply andflood control Systems and the development of system redesign
alternatives to improve adaptability and public benefits.
(b) Surface water storoge planning and feasibility studies pursuant
to the CALFED Bay-Delta Program.
(c) Modeling and feasibility studies to evaluate:the potential for
improving flood protection and water supply through coordinating
groundwater storage and reservoir operations.
(d) Other planning cndfeasibility studies necessary to improve the
integration Offiood control and water supply systems.
Cneprnn 5. Pnorncrtoy oF RtyERS, Ltxzs.ato Srnn,qus
75050. The sum of nine hunircd twenty' eight million dollars
($928,000,000) shall be available for the protection and restoration of
rivers, Iakes and streams, their watersheds and associated land, water,
and other natural resources in accordance with the following schedule:
(a) The sum bf gne hundred eighty million dollars ($180,000,000)
shall be available to the Department of Fish and Game, in consultation with
the departmeit, for Bay-Delta and coastalfshery restoration projects. Of
* * *Text of Proposed Laws I 141
TEXT OF PROPOSED IAWS * * *
the fimds pronided in this section, up to 820,000,000 shall be available
for the development of a natural community conservation plan for the
CALFED Bay-Delta Program and up. to $45,000,000 shall be availablef6r
coastal salmon and steelheadfshery restoration projects that support the
development and implementation of species recovery plans and strategies
,for salmonid species listed as threatened or endangered under state or
.federal law.
(b) The sum of ninety million dollars ($90,000,000) shall be
available.for'projects related to the Colorado River in accordance with
the following schedule :
(1) Not more than $36,000,000 shall be available to the department
.for water consdrvalion projects that implemBnt the Allocation Agreement
as defined in the Quantifcation Settlembnt Agreement.
(2) Not more than $7,000,000 shall be available to the Department
of Fish and Game for plojects to implement the Lower Colorado River
Mult i-Species Habilat Conservotion Pldn.
(3) $47,000,000 shall.be available for deposit into the Salton Sea
Restoration Fund.
ic) The sum of fifty four million dollars ($54,000,000) shall be
available to the department for development, rehabilitation, acquisition,
and restoration costs related to providing public access to recteation
and fish and wildlife resources in connection with state water proiect
obligations pursuant to Water Code Section I 1912.
(d) The sum of sevent\t two million dollars (572,000,000) shall be
available to the secretary for projects in accordance with the California
River Parkways Act o.f 2004 Chapter.3.8 (commencingwith Section 5750)
of Division 5. Up to $10,000,000 may be tansfeted to the Dep(.rtment of
Conservation for the l(atershed Coordinator Grant Program.
(e) The sum of eighteen million dollars ($18,000,000) shall be
availsble to the department for the Urban Streams Restoration Program
pursuant to LVater Code Section 7048.
(fl The sum of thirty six million dollars ($36,000,000) shall
be available for river parkway projects to the San Joaquin River
Conservancy.
(g) The suni of seventy two million dollars ($72,000,000) shall be
available for projects rpiihin the watersheds of the Los Angeles and San.
Gabriel Rivers according to the following schedule: .
(1) $36,000,000 to the San Gabriel and Lower Los Angeles Rivers
aid Mountains Conservancy pursuant to Division 22.8 (commencing with
Section 32600).
(2) $36,000,000 to the Sdnta Monica Mountains Conservancy
for implementation of watershed protection activities throughout the
watershed ofthe Upper Los Angeles River pursuant to Section 79508 of
the lilaler Code.
(h) The sum of thirty six million. dollars ($36,000,000) shall be
available for the Coachella Valley Mountains Conservancy.
(i) The sum of forty fve million dollars ($45,000,000) shall be
availablefor projects to expand and improve the Santa Ana River Parkway.
Project funding shall be appropriated to the State Coastal Conservancy
for projects developed in consultation with local government agencies
participating in the development of the Santa Ana River Parkway. Of
the omount provided in this paragraph lhe sum of thirty million dollars
($30,000,000) shall be equally divided between projects in Orqnge, San
Bernardin o and Riverside Counties.
(j) The sum of ffty four million dollars (854,000,000) shall be
availablefor the Sierra Nevada Conservancy.
(k) The ium of thirty six million dotlars ($36,000,000) shall bi
available for the California Tahoe Conservancy.
(l) The sum of forty fve million dollars ($45,000,000) shall be
available to the California Conservation Corps for resource conservation
and restoration projects and for facitities acquisition, development,
restorotion, and rehabilitation ahd for grants and state administrative
costs, in accordance with the following schedule:
(t) The sum of twenty five million dollars ($25,000,000) shall be
available for projects to improve public safety and improve and restore
watersheds inc.luding regional and community fuel load reduction projects
on public lands, and stream and river restoration projects, Not less than 50'%
ofthese funds shall be in theform of grants to local conservation corps.
(2) The sum of twenty million dollars ($20,000,000) shall be
available for grants to local conservation corps for acquisition and
142 I Text of Proposed Laws* * *
dbvelopment of facilities' to support local conservation corps programs,
and for local iesource conservetion activities.
(m) The sum of ninety million dollars ($90,000,000) to the state
boardfor matching grants to local public agencies for the reduction and
prevention ofstormwater contamination ofrivers, lakes, and streams. The
Legislature may enact legislatien to implement this subdivision.
(n) The sum of one hundred million dollars ($100,000,000) shall
be available to the secretary for the purpose of implementing 4 court
settlement tb restore fiows and naturally-reproducing and self-sustaining
populations of salmon to the San Joaquin River between Friant Dam and
the Merced River. Thesefunds shall be availablefor channel and structural
improvements, and related research pursuant to the court settlement. The
secretary is authorized to enter into a cost-sharing agreement with the
United States Secretary ofthe Interior and other parties, as necessary, to
i m plement t h is provi s ion.
Caaprm 6. ' Fonxr 'tua Wttpurc Consnnvtuou
75055. The sum offour hundredffty mitlion dotlars ($450,000,000)
shall be availablefor the.protection and conservatian offorests andwildlife
habitat ac.cording to the following schedule:
(a) Notwithstanding Section 13340 of the Government Code, the
sum ofone hundred eighty million dollars ($180,000,000) is continuously
appropriated to the board for forest conservation and protection projects.
The goal ofthis grant program is to promote the ecelogical integrity and
economic stability of Calfornia's diverse nativeforests for all their public
benefts through forest conservation, preservation and restoration of
productive managed forest lands, forest reserve oreas, redwood forests
and otherforest types, including the conservation ofwater resources and
natural habitats for natiie fsh, wildlife and plants found on these lands.
(b) (1) Notwithstanding Section 13340 of the Government Code, the
ntm of one hundred thirty five million dollars (5135,000,000) is hereby
continuously appropriated to the boardfor the development, rehabilitation,
restoration, acquisition and protection ofhabitat that accomplishes one or
more of thefollowing objectives:
(A) Promotes the recovery ofthreatened and endangered species.
(B) Provides cotidors linking separate habitat areas to prevent
fragmentation.
(C) Protects signifcant naiural landscapes and ecosystems such as
old growth redwoods, mixed conifer forests and oak woodlands, riparian
and wetland areas, and other signfficant habitat areas.
(D) Implements the recommendations of California Comprehensive
Wildlife Strategy, as submitted October 2005 to the United States Fish and
l4tildlife Service.
(2) Funds authorized by this subdivision may be used for direct
expenditures or for grants and for related state administrative costs,
pursuant to the Wildlife Conservation Law of 1947, Chapter 4 (commencing
with Section 1300) of Division 2 of the Fish and Game Code, the Oak
Woodland Conservotion Act, Article 3.5 (commencingwith Section 1360)
of Chapter 4 of Division 2 of the Fish and Game Code, and the California
Rangeland, Grazing Land and Grassland Protection Act, commencing
with Section 10330 ofDivision.l0.4. Funds scheduled in this subdivision
may be used to prepare management plans.for properties acquired by the
Il'ildlife Conservation Board and for the development of scientifc data,
habitat mapping and other research information necbssary to determine
the priorities for resto?ation and acquisition.statewide.
(3) Up to twentyfive million dollars ($25,000,000) nlay be granted
to the University of Californiafor the Natural Reserve Systemfor maiching
grants for land acqttisition and for the construction dnd develbpment
offocilities that will be used for research and training to improve the
management of natural londs and the preservation of Calfornia's wildlife
resoutces.
(c) The sum of ninety million dollars ($90,000,00U shall be
available to the boardfor grants to implement or assisl in the establishment
of Natural Community Conservation Plans, Chapter l0 (commencingwith
Section 2800) of Division 3 of the Fish and Game Code.
(d) The sum of forty fve million dollars ($45,000,000) shall be
available for the protection of ranches, .farms, and oak woodlands
according the.following s c hedule :
(1) Grazing land protection pursuant to the California Rangeland,
Grazing Land and Grassland Protection Act, commencing with Section
(PROPOSTTION 84 CONTINUED)* * * TEXI' OF PROPOSED LAWS
I 0330 of Division I 0. 4......... $ I 5,000,000.
(2) Oak Woodland Preseriation pursuant to Article 3. 5 (commencing
with Section 1360) of Chapter 4 of Division 2 of the Fish and Game
Code.... $ 15,000,000.
(3) Agricultural land preservation pursuant to the California
Farmland Conservancy Progrant Act of 1995, Article I (commencing with
Section 1 0200) t)f Division I 0. 2....... $ I 0,,000,000.
(4) To the board for grants to assist farmers in integrating
agricultural activities with ecosystem restoration and wildlife
protecl ion..... $ 5,000,000.
Catprm 7. Pnorscrrou oF BEACHES, B.sys.4un
Coasr,qL Wrons
75060. The sum offve hundredforty million ctollars ($540,000,000)
shall be availablefor the prbtection ofbeaches, bays and coastal watels and
watersheds, including projects to prevent contamination and degradation
of coastal waters and watersheds, projects to protect and restore the
natural habitat values of coastal waters and lands, and projects and
expenditures to promote access.to and enjoyment of tlte coastal resources
ofthe state, in accordance with thefollowing schedule:
(a) The sum of ninety million dollars ($ 90,000,000) shall be available
to the state boardfor the purpose ofmatching groilts ft)r protecting beaches
and coastal waters from polltttion and toxic contaminatiotx pursuant to the
Clean Beciches.Progrom, Chapter 3 (commencing with Siction 30915) of
Division 20.4. Not less than 835,000,000 shall befor grants to bcal public
agencies to assist those agencies to cbmply with the discharge prohibition
into Areas of Special Biological Signfficanie contained in the California
Ocean PIan. Not less than 20ok of the .funds allocated by this subdivision
shall be available to the Santa Monica Bay Restoration Commission.
(b) The sum of one hundred thirtyfve million tlollats ($13.1,000,000)
shall be izvailable fof the State Coastal. Conservancy for e;cpenditure
pursuant to Division 21.
' (c) The sum of one hundreel eight million dottars ($108,000,000)
shall be availabtefor the San Francisio Bay Area Conservancy Program
pursuant to Chapter 4.5 of Division 21. Not less than 20'% of the funds
allocated by this paragraph shall be expended on projects in watershecls
draining directly to the Pacifc Ocean.
(d) The sum of forty five million rtottars ($45,000,000) for the
protection ofthe Santa Monica Bay and its watersheds shall be available
as follows:
(1) To the Santa Monica Mouhtdins Conservancy prrsuant to
Diiision 23 (commencing with Section 33000)........ $20,000,000.
(2) To the Bal"dwin Hills Conservancy for the protection of the
Ballona Creek/Baldwin Hills watershed...... $ 1 0,000,000.
(3 ) To the'Rivers and Mountains C ons ervancy...... $ I 5,0 0 (), 0 0 0.
(e) The sum of forty fve million dollars ($45,000,000) for the
protection of Monterey Bay. and its watersheds shall be available to the
Sl ate Coasla I Conse rva ncy.
(f) The swt of twent, seven million dollars ($27,000,000) for the
protection of San Diego Bay and adjacent watersheds shall be available to
the State Coastal Conservancy.
(g) The sum of ninety million dollars ($90,000,000) shall be 'allocated to the Califurnia Ocean Protection Trust Fund (Chapter 4
(commencing \eith Section j5650) of Division 26.5) and available for the
purposes ofprojects consistehtwith Section 35650. Priority projects sholl
include the development of scientifc data needed to adaptively manage
the state's marine resources and reserves, including the develol)ment of
marine habitat maps, the development and implementation ofprojects to
foster sustainable fsheries using loans and grants, and the development
and implementation of projects to conserve marine wildlife.
Cn.qprzn 8. Ptnxs ,sun N, rinn Eouc,arroi FACTLTTTES
75063. The sua of fve htmdred million. dollars (8500,000,000)
shall be available to provide public access to the resotffces of the State
of California, incliding its rivers, lakes and streams, its beaches, bays
and coastal waters, to protect those resources for fttture genertttions, and
to increase public understanding and knowledge of those resources, in
accordance with the.following schedule:
(a) The sum offour hundred million dollars.($400,000,000) shall
be available to the Dep(irtment of Parks and Recreotionfor developntent,
acquisition, interpretation, restoration and rehabilitation of the state
park system and its natural, historical, and visitor serving resources. The
Department oJ Parks and Recreation shall include the following goals in
setting spending priorities for the.funds appropriated pursuant to this
seclion:
(l ) The restoration, rehabilitation and improvement of existing state
park system lands andfacilities.
(2) The expansion of the state park system to reflect the growing
population and shifting populaiion centers and needs of the state.
(3) The protection ofrepresentdtive natutal resottrces based on the
criteria and priorities identified in Section 75071.
@) fhe sum of one hu.ndrecl nrillion dollars 1$100,000,000) shatl
be available to the Departmat of Parks and Recreation for grants
for nature education and research facilities and equipment to non-
profl orgctnizations and public institutions, including natural history
museums, aquariums, research facilities and botanical gardens. Eligible
institutions include those that combine the study of natural science with
preservation, demonstration and education programs that serve diverse
populations, institutio,ns that,prot,ide collection.s and programs related
to tlte relationship of Native American cultures to the environment, and
instittrtions for marine wildlde conservation research. Grants may be useci
for buildings, structures and exhibit galleries that present the cbllections
to inspire and educate the public and for marine wildlife conservation
re s earc h e quipment and.fac ilities.
Ca, przn 9. Susrtwanrc Couuuutrtns tND CL:MA':'E
Cu.sNcz Rtoucrtou
75065. Thesunffivehundredeightymilliondollars ($580,000,000)
shall be available for intproving the sttstainability. and livability of
California's communities through investment in naturdl resources. The
purposes ofthis chapter include reducing urban commrmities' contribution
to global tuarming a.nd increasing their adaptability to climate change
while improving the quality of life in those communities. Funds shall be
available in accqrdance with thefollowing schedule:
(a) The sum ofninety million dollars ($90,000,000) shall be available
for urban greening projecis that reduce energy consumption, conserve
water, improve air and water quality, and provide other conmr,mity
benefits. Priority shall be given to projects that provide multiple benefts,
use existing public lands, serve communities with the greatest need, and
facilitate joint use of public resources and investntents including schools.
Implementiig legislation shall provitle for planning grants for urban
greening programs. Not less than $20,000,000 shall be ovailable for
ufban forestry projects pursuent to the Califurnia (Jrban Forestryt Act,
Chapter 2 (commencing with Section 4799.06) of Part 2.5 of Division 1.
@) fhe sum offour hundred million dollars ($400,000,000) shall
be available to the Department'of Parks and Recreation for conxpetitive
grants for local and regional parks. Funds provided in this subdivision
may be allocated to existing programs or pursuant to leEislation enacted
to implement this subdivision, subject to thefollowing considerations:
(1) Acquisition and development of new parks and expansion of
overused parks that provide par"k and recreational access to trnderserved
communities shdll be given preference.
(2) Creation ofpa*s in neighborhoods where none arrently exist
shall be given preference.
(3) Outreach and technical assistance shall be provicled to
underserved communities to encotrrage full participation in the program
or programs-
(4) Preference shall be given to applicants that actively involve
community based group; in the selection and planning ofprojects.
(5) Projects will be designed to provide effcient use ofwater and
othe r na I u ro I reso u rces.
(c) The sum ofninety ntillion dollars (990,000,000) shall be availnble
for planning grants and planning incentives, including revolving loan
programs and other methods to encourage the development of regional
and local,land ttse plans that are designed to promote water conservation,
reduce automobile use andfuel consumption,'encourcge greater infill and
compect development, protect natural resources and agricultural lands,
and revitalize urban and community centers.
* * *Text of Proposed Laws I 143
TEXT OF PROPOSED IAWS * * *
75066. Appropriation ofthefunds provided in subdivisions (a) and
(c) of Section 75065 may only be'made Ltpon enactment of legislation to
implemen t I ha I subdivision.
Cntprnn 10. Mncnutuoous Pnowsrous
75070. Every proposed abtivity or project to befinanced pursuant
to this division shall be in compliance v)ith the California Environmental
Quality Act, Division I3 (commencing with Section 21000).
75070.4. Acquisitions ofreal property pursuant to Chapters 5, 6, 7,
8, and 9 shall befiom wilLing sellers.
75070.5. Not more than 5'% of the funds allocat:ed to any program
in this division may be ttsed to pay th.e costs incurred in the administrqtion
of that program.
75071. In evaluating potential prqjects that include acquisition or
restorationfor the purpose ofnatural resource protection, the Department
of Parks and Recreation, the board, and the State Coastal Conservancy
shall give priority to projects that demonstrate one or more ofthefollowing
characteristics:
(a) Landscap,e/Habitat Linkages: properties that link to, or
contribute to linking, existing protected areas with other large blocks of
protected habitat. Linkages must serve to connect existing protected areas,
facilitate wildlife movement or botanical transfer, and result in sustainable
combined acreage.
' (b) Watershed Protection: projects. that contribute to longlerm
protection of and improvement to the water and biological quality of the
streams, aquifers, and terrestrial resources of priority watersheds of
the major'biological regions of the state as identifed by the Resoulces
Agency.
(c) Properties that support relatively large areas ofunder-prqtected
major habitat types.
(d) Properties that provide habitat linkages between two or more
major biological regions ofthe state.
(e) Properties for which there is a non-state matching contribution
toward the acquisition, restorqtion, stewardship or management costs.
Matching contributions can be either monetary or in theform ofservices,
including volunte er s elvices.
(f) At ldasr.fotrrteen days beJbre approving an dcquisition project
funded by this clivision, an agency subject to this section shall submit to the
Resources Agency and post on its website an explanation as to whether aid
how the proposed acquisition meets criteria established in this section.
75071.5. The Department of Parks and Recreatioi, the board,
and the State Coastal Conservancy shall work wilh the United States
Department of DeJbnse to cootdinate the development of buJfer areas
around military.facilities that facilitate the contirued operation of those
facllities and promote the conservation and recreation goals of the state.
To the extent consistent with this division, dgencies may providefunding to
support projects that meet the purposes of this section.
75072. Up to 10 percent offit nds alloiated for each programfunded
by this division may be used tofnance planning and monitoring necessary
for the successfiil design, selection, and implementation of the projects
authorized under thqt program. Thii provisibn shall not otherwise restrict
funds ordinarily used by an agency for "preliminary plans," "working
drawings;" and "qonstruction" as defned in the Annual Budget Act for
a capital outlay project or.glant project. Water quality monitoring shall
be integrated into the Surface Water Ambient Monitoring Program
administered by the state..board. .
75072.5. For the purposes ofsection 75060(e), "Monterey Bay and
its watersheds" shall be considered to be watersheds of those rivers and
streams in Santa Cruz and Monterey Countiesfowing to the Monterey Bay
southward to, and including, the Carmel River watershbd.
75072.6. Fo, purp^n, of Section 75060(fl, "San Diego Bay and
adjacent watersheds" includes the coastal and bay watersheds within San
Diego County.
75072.7. For purposes.of Section 75060(d), "Santa Monica Bay
and watershed" includes the coastal and bay watersheds in Ventura and
Los Angeles Counties from Calleguas Creek southward to the San Gabriel
River.
75073. Fuwls scheduled in Chapter 5, 6, 7 and 8 of this division
that dre not designated for competitive grant programs may also be used
for the purposes ofreimbursing the General Fund, pirsuant to the Natural
Heritage Preservation Tax Credit Act of 2000 (Division 28 (commencing
with Section 37000)).
75074. In enacting Chapters 5, 6, 7 and I of this division it is the
intent ofthe people that when a project or program is funded herein, funds
for such program or project nay be used to thefull extent authorizeit by the
statute governing the program or conseryancy receiving suchfuids.
75075. The body awardin! any contractfor a public works project
financed in any part froin funds made available pursuant to this divtsion
shall adopt and enforce, or contract with a third party to enforce, a labor
compliance program pursuant to subdivision (b) of Labor Code Section
1771.5 for application to that public works project-
75076. Chapter 3.5 (commencing with Section 11340) of Parf
I of Division 3 of Tille 2 of th.e Government Code does not apply to the
development and adoption of program,guidelines and selection criteria
adopted pursuant to this chapter.
75077. Funds provided pursuant to this chapter, and any
appropriation or transfer of those funds, shall not be deemed to bb a
transfer offunds for the purposes of Chapter 9 (commencing with Section
2780) of Division 3 of the Fish and Game Code.
75078. The Secretary shall provide for an independent audit
of expgnditures pursuant to this division to ensure that all moneys are
expended in accordance with the requireinents of this division. The
secretary shall publish a list of all program and project expenlditures
pursuant to this division not less than annually, in written form, and shall
post an electronic form of the list on the Resources Agency's Internet
lVebsite.
75079. The Secreiary shall appoint.a citizen advisory committee
to revibw the annual audit and to identify and recommend actions to
ensure that the intent and purposes of this division are met by the agencies
responsible for implementation of this division.
Cn.qprm ll. Ftsc.qt Pnowstons
75080.. Bonds in the total amount offve billion three hundred and
eighty eight million dollars ($5,388,000,000), not including the amount of
any refunding bonds issued in accordance with Section 75088, or so much
thereofas is necessary, may be issued.and sold to be usedfor carrying
out the purposes setforth in this.divition and to be used to reimburse the
General Obtigation Bond Expense Revolving Fund pursuant to Section
16724.5 ofthe Government Code. The bond proceeds shall be deposited in
the Safe.Drinking lI/ater, Water Qyality and Supply, Flood Control, River
and Coastal Protection Fund of 2006 created by Section 75009. The bctnds
shall, when sold, be and constitute a valid and binding obligation of the
State ofCalifornia, and the.full faith and credit ofthe,State of California is
hereby pledged for tfte punctual payment of both pr.incipal of and interest
on the bonds as they become due and payable.
75081. The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law, Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Titlb 2 of the Government Code, a.nd all
prov'isions ofthat law shall apply to the bonds and to this division and are
hereby incorporalAd in this division by this reference as though fully set
.forth in this division.
7t052. (a) Sotety for the purposq of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this division, the Safe Drinking Ll/ater, Watpr Quality and
Supply, Flood Control, River and Coastal Protection Finance Committee
is hereby created. For purposes ofthis division, the Safe Drtnking Water,
Ilater Quality and Supply, Flood Control, River and Coastal Protection
Finance Committee is "th4 committee" as thdt term is used by the
State General Obligation Bond Law. The committee shall consist of the
Controller, the Director ofFinance, and the Treasurer, or thleir designated
representatives. The Treasurer shall serve os chairperson ofthd committee.
I majorily of the committee may aCt for the committee.
' (b) For pnrposes of this chapter and the State General Obligation
Bond Law, the secretary is designated as "the board.t'
75083. The committeeshalldeterminewhether ornot it is necessary
or desirable to issue bonds authorized pursuant to this divlsion in order
to carr, out the actions specifed in this division and, ifso, the amount of
bonds to be issued and sold. Successive issues ofbonds may be authorized
1zl4 I Text of Proposed Laws* * *
(PROPOSITION 84 CONTINUED)* * * TEXI OF PROPOSED IAWS
and sold to carry out those actions progressively, and it is not necessary
that dll of the bonds authorized to be issued be sold at any one time.
75084. There shall be collected annualllt in the same manner and
at the same time as other stqte revenue is tollected, in addition to the
ordinary revenues of the state, a sum in an amount required to pay the
principal of, and interest on, the bonds nlaturing each year, and it is the
duty of all fficers charged.by law with any duty in regard to the collection
ofthe revenue to do so and perform each and every act that is necessary to
collect that additional sum.
' 75085. Notwithstanding Section 13340 of the Government Code,
there is hireby appropriated from the Generql Fund, for purposes of this
division, an amount that will equal the total of thefollowing:
(a) The sum annually necessary to pay the principal of, and interest
on, bonds.issued and sold pursuant to this division, as the principal and
interest become due and payable-
(b) The sum which is necessary to cany out the provisions ofSection
75086, appropriated without regard to fscal years.
75086. For the purposes of carrying out this division, the Director
of Finance may authorize the withdrawal from the General Fund of an
amoilnt or amounts not to exceed the amount of the unsold bonds that have
been authorized to be soldfor the purpose ofcarrying out this division.
Any amounts withdrawn shall be deposited in thefund. Any money made
available under this section shall be returned to the General Fund, plus
the.interest that the amounts would have earned in the Pooled Money
Investmeil Account, ftom money received from the sale of bonds that
would otherwise be deposited in that fund.
75087. AII money derived from premium and accrued interest on
bonds sold shall be reserved and shall be available for transfer to the
General Fund as a credit to expenditures for bond interest.
75088. Any bonds issued or sold pursuant to this division may be
refunded by the issuance of refunding bonds in accordance with Article
6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code. Approval by the electors of the state
for'the issuance of the bonds shall include approval of the issuance of
any bonds issued to refund any bonds originally issued or any previously
issued refun d i ng bond s.
75090. The people of California hereby fnd and declare that
inasmuch as the proceeds from the sale of bonds authorized by this
division are not "proceeds oftaxes" as that term is used in Article XIII B
ofthe Californis Constitution, the disbursement ofthese proceeds is not
subject to the limitation imposed by that article.
SEC. 2. Ifany provision ofthis Act or the application thereofis held
invalid, that invalidity shall not affect otherprovisions or applications ofthe
act which can be given effect without the invalid provision or application,
and to this end the provisions of this act are severable.
SEC. 3. This Act is an exercise ofthe public power ofthe People of
the 3tate ofCalifornia for the protection oftheir health, safety, and welfare
and shall be liberally construed to effectuate those purposes.
PROPOSITTON 85
This initiative measure is submitted to the people in accordance with
the provisions ofArticle II, Section 8 ofthe California Constitution.
This initiative measure expressly amends the California Constitution
by adding a section thereto; therefore, new provisions proposed to be added
are printed in italic type to indicate that they are new.
PROPOSED LAW
SECTION I. TitIC
This measure shall be known and may be cited as the Parents' Right
to Know and Child Protection Initiative.
SEC. 2. Declaration of Findings and Purposes
The people of California have a special and compelling interest in
and responsibility for protecting the health and well-being of children,
ensuiing that parents are properly informed of potential health-related
risks and medical decisions involving their children, and promoting and
enabling parental care and iesponsibitity.
SEC. 3. Parental Notification
. Section 32 is added to Article I of the California Constitution, to read:
SEC. 32. (a) Forpurposes ofthis section, thefollowingterms shall
be defined to mean: r(l) 'Abortion" means the use of any means to terminate the
pregnancy ofan unemancipated minor known to be pregnant, elrceptfor
the purpose of producing a live birth.' Abortion" shall not include the use
of iny iontraceptit e drig or device.
12) "Medicat emergency" means a condition which, on the basis of
the physician's good-faith clinical judgment, so complicates the medical
crindition of a pregnant unemancipated minor as to necessitate the
immediate abortion of her pregnancy to avert her death or for which a
delay will create serious risk ofsubstantidl and irreversible impairment of
a major bodily funct ion.
(3) "Notice" means a written notifcation, signed and dated by a
physician or his or her. agent and addressed to a parent or guardian of
an unemancipated minor, informing the parent or guardian that she is
pregnant and that she has riquested an abortion.
(4) "Parent or guardian" means apersonwho, at the time notice or
waiver is required under this section, is either a parent ifboth parents have
legal custody, or the parent or person having legal custody, or the legal
guar dian of an une m anc ip ated mino r.
(5 ) " Unentancipated minor " means afemale under the age of I 8 years
who has not entered into a valid marriage and is not on active duty with the
armed services of the United States and has not received a declaration of
emancipation under state law. For the purposes of this section; pregnancy
does not emancipate afentale under the age of IB years,
(6) "Physician" means any person authorized under the statutes
and regulations of the State of California to petform an abortion upon an
unennncipated minor.
(b) Notwithstanding Section I ofArticle I, or any other provision of
this Constitution or law to the contrary and except in a medical emergency
as provided for in subdivision (fl, a physician shall not perform an
abortion upon a pregnhnt unemancipated minor until the physician or the
physician's agent has provided written notice to her parent or guardian
personally as provided for in subdivision (c) and a reflection period bf at
Ieast 48 hours has elapsed alter personal delivery of notice: or until the
physician can presume that notice has been delivered by mail as provided
in subdivision (d) and a refection period ofat least 48 hours has elapsed
after prentmed delivery ofnotice by mail; or until the physician or the
physician's agent has received a valid written waiver ofnotice as prbvided
for in subdivision (e); or until the physician has received a copy ofa waiver
of notification from the court as provided in subdivision (h), (i), or (j). A
copy of any notice or waiver shall be retained with the unemavcipated
minor's. medical records. The physician or the physician's agent shall
inform the tmemancipated minor that her parent or guardian may receive
notice as provided.for in this section.
(c) The written notice shall be delivered to the parent or guardian
personally b, the physician or the physician's agent unless delivered
by mail, as provided in subdivision (d). A formfor the notice shall be
prescribed by the State Department of Health Services. The notice form
shall be bilingual, in English and Spanish, and also available in English
and each of the other languages in which Calfornia Offcial Voter
Information Guides are published.
(d) The written notice may be delivered by certifed mail addressed
to the parenl or guardian at the parent's or guardian's last known address
with return receipt requested and restricted delivery to the addressee. To
help ensure timely notice, a copy ofthe written notice shall also be sent at
the same time byfrst-class mail to the pdrent or guardian. Notice can only
be presumed to have been delivered under the proiisions ofthis subdivision
at noon ofthe second day after the wlitten notice sent by certifed mail was
postmarked, not counting any days on which regular mail delivery does
not take place.
(e) Notice of an utemancipated minor"s intent to obtain an abortion
and the reflection period of at least 48 hours may be waived by her parent
or gttardian. The waiver must be in vriting, on aform prescribed by the
State Department of Health Services, signed by a parent or guardian,
dated, and notdrized. The parent or guardian shall specify on theform that
thewaiver is validfor 30 days, or tmtil a specifed date, or until the minor's
eighteenth birthday. The written waiver need not be notarized ifthe parent
* * * Text of Proposed Laws I 145
TEXT OF PROPOSED LAWS * * *
or guardian personally delivers it to the physician or the physician's agent.
The form shall include the following statement :
"WARNING. It is a crime to knowingly pgovide false information
to a physician or a physician's agent for the purpose of inducing a
physician or a physician's agent'to helieve that a waiver of notice
has been provided by a parenl or guardian," The waiver form shall be
bilingual, in English and Spanish, and also avatlable in English and each
of the other languages in which California Official Voter Information
Guides are published. For each abortion performed on an unemancipated
minor pursuant to this subdivision, the physician or the physician's agent
must receive a separate original written waiver that shall be retained with
the unemancipated minor's medical records.
(fl Notice shall not be required under this section if the attending
physician certifies in the unenancipated minor's medical records the
medical indications supporting thephysician's good-faith clinicaljudgment
that the abortion is necessary due to a medical emergency.
(g) Notice shall not be required under this section ifwaived pursuant to
this subdivision and subdivision (h), (i), or (j). Ifthe pregnant unemancipated
minor elects not to permit notice to be given to a parent or guardian, she may
fle a petition with the juvenile court. If pursuant to this subdivision, an
unemancipated minor seeks tofle a petition, the court shall assist the minor
or person designated by the minor in preparing the documents reQuired
pursuant to this section. The petition shall setforthwith specifcity the minor's
reasons Jbr the request. The court shall ensure that the minor's identity be
kept confidential and that all court proceedings be sealed. Noflingfee shall
be required for fling a petition. The unemancipated minor shall appear
personally in the proceedings in juvenile court and may appear on her
own behalfor with counsel ofher own choosing. The court shall, however,
advise her that she has a right to court-appointed counsel upon request. The
court shal appoint a guardian ad litem for her. The hearing shall be held
by 5 p.m. on the second court day afterfling the petition unless extended at
the written request ofthe unemancipated minor, her guardian ad litem, or
her counsel. If the guardian ad litem requests an extension, that extension
may not be grantedfor more than one court daywithout the consent ofthe
unemancipated minor or her counsel, The unemancipated minor shall be
notifed ofthe date, lime, and place ofthe hearing on the peiition. Judgment
shall be entered within one court day of submission of the matter. The judge
shall order a record of the evidence to be maintained, including the judge's
written factual findings and legal conclusions supporting the decision.
(h) (1 ) If the judge fnds, by clear and convincing evidence, that the
unemancipated minor is sfficiently mature'and well-informed to decide
whether to have an abortion, the judge shall authorize a u,aiver of notice
ofa parent or guardian.
(2) Ifthejudgefnds, by clear and convincing evidence, that notice
to a parent or guardian is not in the best interests of the unemancipated
minor, the judge shall authorize a waiver ofnotice. Ifthefnding that notice
to a parent or guardian is not in the best interests of the ninor is based on
evidence of physical, sexual, or emotional abuse, the court shall ensure
that such evidence is brought to the attention of the appropriate county
child protective agency.
(3) If the judge does not make a finding speciJied in paragraph (1 ) or
(2), the judge shall deny the petition.
(i) If the judge faits to rule within the time period specffied in
subdivision (g) and no extension was requested and granted, the petition
shall be deemed granted and the notice requirement shall be waived.
(j) The unemancipated minor may appeal the judgment of the
juvenile court at any time afier the entry ofjudgment. The Judicial Council
shall prescribe, by rule, the practice and procedure on appeal and the time
and manner in which any record on appeal shall be prepared and filed
and niay prescribe forms for such proceedings. These procedures shall
require that the hearing shall be held within three court days offling the
notice of appeal. The unemancipatid minor shatt be notified of the date,
time, and place ofthe hearing. Judgment shall be entered within one court
day ofsubmission ofthe matter. The appellate court shall ensure that the
unemancipated minor's identity be kept confdential and that all court
proceedings be sealed. Noflingfee shall be requiredforfling an appeal.
Judgment on appeal shall be entered within one court day ofsubmission
of the matter.
(k) The Judicial Council shall prescribe, by rule, the practice dnd
procedure for petitions for waiver of parental notification, hearings, and
entry ofjudgment as it deems necessary and may prescribe forms for such
proceedings. Each court shall provide annually to the Judicial Council, in
a manner to be prescribed by the Judicial Council to ensure confdentiality
of the unemancipated minors fling petitions', a report of the number of
petitions filed, the number of petttions granted under paragraph (1) or
(2) of subdivision (h), deemed granted under subdivision (i), denied
under paragraph (3) of subdivision (h), and granted and denied under -
subdivision (j), said reports to be publicly available unless the Judicial
Council determines that the data contained in individual reports should be
aggregated by county before being made available to the public in order to
preserve the confidentiai)ity of thi unemancipated minori filing petitions.
(l) The State Department of Health Services shall prescribe forms
for the reporting of abortions performed on unemancipated minors by
physicians. The reportforms shall not identify the unemancipated minor or
her parent(s) or guardian by name or request other information by which
the unemancipated minor or her parent(s) or guardian might be identffied.
The forms shall include the date of the procedure and the unemancipated
minor's month and year of birth, thd duration of the pregnancy, the type of
abortion procedure, the numbers of the unemancipated minor's previous
abortions and deliveries if known, and the faciltty where the abottion
was performed. The forms shall also indicate whether the abortion was
performed after personal delivery of a notice, pursuant to subdivision
(c); or was an abortion performed after presumed delivery of a notice
by mail, purcuant to subdivision (d); or was an abortion performed
after receiving a waiver ofnotice, pursuant to subilivision (e); or was an
abortion performed without notice, pursuant to subdiuision (f1; or was an .
abortion performed after receiving anyjudicial waiver ofnotice, pursuant
to subdivision (h), (i), or A).
(tn) The physician who performs an abortion on an unemancipated
minor shall within one month fle a dated and signed report concerning it
with the State Department ofHealth Services onforms prescribed pursuant
to subdivision (l). The identity ofthe physician shall be kept confdential and
shall not be subject to disclosure under the Caldornia Public Records AcL
(n) The State Department of Health Services shall compile an annual
statistical reportfrom the information specified insubdivision (l). The annual
report shall not include the identity of any physician who fled a report as
required by subdivision (m) The cbmpilation shall include statistical
information on the numbers of abortions by month and by county where
performed, the minors' ages, the duration of the pregnancies, the types of
abortion procedures, the numbers of prior abortions or deliveries where
known, and the numbers ofabortions performed after personal delivery of
a notice, pursnant to subdivision (c); thi numberi of abortions performed
after presumed delivery of a notice by mail, pursuant to subdivision (d);
the numbers of abortions performed after a waiver of notice, pursuant to
subdivtsion (e); the numbers ofabortions performedwithout notice, pursuant
to subdivision (f); and the numbers ofabortions performed after anyjudicial
waivers, pursuant to subdivision (h), (i), or (j). The annual stotisticql report
shall be made available to county public health fficials, Members of the
Legislature, the Governor, and the public.
(o) Any personwho performs an abortiitn on anunemancipated minor
and in so doing knowingly or negligentlyfails to comply with the provisions
ofthis section shall be liablefor damages in a civil action brought by the
unemancipated minor, her legal representative, or by a parent or guardian
wrongfully denied notifcation. A person shall not be liable under this
section if the person establishes by written evidence that the person relied
upon evidence suffcient to convince a careful and prudent person that the
representations of the unemancipated mingr or other persons regarding
information necessary to comply with this section were bonafde and true.
At any time prior to the rendering ofafnaljudgment in an action brought
under this subdivision, the parent or guardian may elect to recover, in lieu
of actual damages, an award of statutory damages in the amount of ten
thousand dollars ($10,000). In addition to any damages awarded under
this subdivision, the plaintiff shall be entitled to an award of reasonable
attorneyfees. Nothing in this section shall abrogate, Iimit, or restrict the
common law rights ofparents or guardians, or any right to reliefunder
an), theory of liability that any person or any state or local agency may
have under any statute or comnton lawfor any injury or damage, including
any Iegal, equifuble,.or administrative re,medy underfederal or state law,
against any party, with respect to injury to an unemancipated minor'from
an abortion.
(p) Other than an unemancipated minor who is the patient of a
physician, or other than the physician or the physician's agent, any person
who knowingly provides false idormation to a physician or a physician's
146 I Text ot Proposed Laws * * *
(PROPOSITION 85 CONTINUED)* * * TEXT OF PROPOSED IAWS
agentfor the purpose ofinducing the physician or the physician's agent to
believe that pursuant to this section notice has been or will be delivered,
or that a waiver of notice has been obtained, or that an unemancipated
minor patient is not an unemancipated minor, is guilty of a misdemeanor
punishable by afne ofup to one thousand dollars (51,000).
(q) Notwithstanding any notices delivered pursuant to subdivision
(c) or (d) or waivers received pursuaht to subdivision (e), (h). (i), or (j).
except where the particular circumstances of a medical emergency or her
own mental incapacity precludes obtaining her consent, a physician shall
not perform or induce an abortion upon an unemancipated minor except
with the consent of the unemancipated minor herself.
(r) Notwithstandipg any notices delivered pursuant to subdivision
(c) or (d) or waivers received pursuant to subdivision (e), (h), (r, or (j), an
unemancipated minor who is being coerced by any person throughforce,
threat offorce, or threatened or actual deprivation offood or shelter to
consent to undergo an abortion may apply to the juvenile court for relief.
The court shall give the matter.expedited consideration and grant such
reliefas may be necessary to prevent such coercion.
@ This section shall not take effect until 90 days after the election
in which it is approved. The Judicial Council shall, within these 90 days,
prescribe the rules, practices, and procedures and prepare and make
available any forms it may prescribe as provided in sibdivision (k) The
State Department of Health Services shall, within these 90 days, prepare
and make available theforms prescribed in subdivisions (c), (e), and (l).
(t) If any one or more provision, subdivision, sentence, clause,
phrase or word of this section or the application thereof to any person or
circumstance is found to be unconstitutional or invalid, the same is hereby
declared to be severable and the balance of this section shall remain
effective notwithstanding such unconstitutionality or invalidity. Each
provision, subdi,'ision, sentence, clause, phrase, or word of this section
would have been approved by voters itespective of the fact that eny one
or more provision, subdivision, sentence, claqse, phrase, or word might be
declared unconstitutiohal or invalid.
(u) Exceptfor the rights, duties, privileges, conditions, and limitations
specifically provided for in this section, nothing in this section shall be
construed to grdnt, secure, or deny any other rights, duties, privileges,
conditions, and limitations relating to abortion or the funding thereof,
PROPOSITION 86
This initiative measure is submitted to the people in accordance with
the provisions ofSection 8 ofArticle II ofthe California Constitution.
This initiative measure adds sections to the California Constitution
and the Health and Safety Code, the Insurance Code, the Revenue and
Taxation Code, and the Welfare and Institutions Code; therefore, new
provisions proposed to be added are printed in italic type to indicate that
they are new.
PROPOSED LAW
THE TOBACCO TAX ACT OF 2006
SECTION 1. StatementofFindings
(a) Cigarette smoking and other uses oftobacco are leading causes
of many serious health problems, including cancer, heart disease and
respiratory diseases. The treatment of tobacco-related diseases imposes
a significant burden upon California's already overstressed health care
system. Prior efforts to curb the use oftobacco have not sufficiently eased
the health care burden on the taxpayers ofCalifornia.
(b) Tobacco use costs Californians billions of dollars a year in
medical expenses and lost productivity.
(c) Currently, the state imposes a tax on cigarettes and tobacco
products. Funds from that tax are used in part by the state to fund programs
to offset the adverse health consequences oftobacco use. The tobacco tax
is an appropriate source to fund prevention, research and treatment of
chronic diseases, including improved access to health bare for children
and adults.
(d) The tax on tobacco products in California has not been raised
since 1998. As a consequence, the total tax levied on tobacco products
is much less than in many other states. Yet the health consequences to
our citizens, particularly children and young adults, and the corresponding
burden on our state's health care system continue.
(e) The deterioration of the state's hospital emergency services
network has left many communities unable to adequately cope with the
normal flow of emergency services. This emergency services crisis
imposes a- significa4t burden on our community clinics and keeps them
from fulfilling their important health care function for low income children
and adults.
(f) Funds which could be used to provide pioneering research into
the prevention and treatment of chronic diseases, and health insurance
for our most vulnerable children, are increasingly diverted to address the
health care crisis caused, in part, by tobacco-reiated illnesses.
(g) Almost 80% of adult smokers become addicted to tobacco before
age 18. Increasing the cost of cigarettes and other tobacco productS and
providing a comprehensive tobacco control program have proven to. be
two of the most effective ways to reduce smoking among youth and the
associated health problems and economic costs.
(h) The establishment of programs designed to (1) reduce the
consumption of tobacco in the first instance, (2) fund research, early
detection and treatment of chronic diseases, and (3) preserve access to
emergency hospital services performed by well-trained doctors and nurses,
is vital to the public's interesl.
SEC. 2. Statement ofPurpose
(a) The people of California hereby increase the tax on tobacco to
reduce the economic costs of tobacco use in California and to provide
supplemental funding to:
(1) promote medical research into chronic diseases, particularly
cancer;
(2) reduce the impact ofchronic diseases through prevention, early
detection, treatment and comprehensive health insurance; and
(3) improve access to and delivery of health care, particularly
emergency health services. a
SEC. 3. Tobacco Tax
Article 4 (commencing with Section 30132) is added to Chapter 2 of
Part 13 ofDivision 2 ofthe Revenue and Taxation Code, to read:
Article 4. The Tobacco Tax of2006 Trust Fund
30132. The Tobacco Tax of 2006 Trust Fund ("Tobacco Trust
Fund") is hereby created in the State Treasury. Thefund shall consist of
all revenues deposited therein pursuant to this Article, including interest
and investment income. Moneys deposited into the Tobacco Tax of 2006
Trusl Fund shall be allocated and are continuously appropriated for the
exclusive purpose offunding the programs and services in Section 30132.3
and"shall be available for exppnditure without regard to.fiscal years.
30132.1. (a) In addition to the taxes imposed upon the distributi6n
of cigarettes by Article I (commencing with Section 30101) and Article
2 (commencing with Section 30121) and Article 3 (commencing with
Section 30131) and any other taxes in this Chapter, there shall be imposed
an additional tax upon every distributor of cigarettes at the rate of one
hundred thirty mills ($0.130).for each cigarette distributed.
(b) For purposes oftlis Article, the term "cigarette" has the same
meaning as in Section 30003, as it read on Jarutary I, 2005.
(c) The tax imposed by this Section, and the resulting increase in the
tax on tobacco products required by subdivision (b) ofSection 30123, shall
be imposed on every cigarette and on all tobacco products in the possession
or under the control of every dealer, wholesaler, and distributor on and
after 12:01 a.m. on January l, 2007, pursuant to rules and regulations
promulgated by the State Board of Equalization.
30132.2. The State Board of Equalization shall.determine
within one year of the passage of this Act, and annually thereafter, the
effect that the additional tax imposed on cigarettes by this Act, and the
resulting increase in the tdx on tobacco products required b1, subdivision
(b) ofSection 30123, have on the consumption ofcigarettes and tobacco
produlcts in this state. To the extent that a decrease in consumption is
determined by the State Board of Equalization to be a direct result of the
additional tax imposed by this Act, or the resulting increase in the tax
on tobacco products required by subdivision (b) of Section 30123, the
State Board ofEqualization shall determine thefscal effect the decrease
in co4sumption has on the California Children and Families Trust Fund
created by Proposition 10 (1998). Funds shall be transferred from the
* * * Text of Proposed Laws I 147
TEXT OF PROPOSED IAWS * * *
Tobacco Trust Frmd to the Califtrnia Children and Families Trust Fund as
necessary to offset the revenue decrease directly resultingfrom imposition
of the additional tax imposed by this Act, and the resulting increase in the
tax on tobacco products required by subdivision (b) ofSection 30123. The
reimbursements shall occur, and at such times, as determined necessary to
further the intent ofthis Section. i
30132.3. Exceptfor payments ofrefunds made pursuant to Article l
(commencing wilh Section 30161) of Chapter 6, reimbursement of the
State Board of Equalization for expenses incurred in the administration
and collection of the tax imp'osed by Section 30132.1 and the resulting
increase in the tax on tobacco products required by subdivision (b) of
Section 30123, and transfers offunds in accordance with Section 30132.2,
all moneys raised pursuant to the tax imposed by Section 30132.1, and the
'resulting increase in the tax on tobacco products required by subdivision
(b) ofSection 30123, shall be deposited iqt the Tobacco Tmst Fund. Moneys
shall be qllocated and appropriated from the Tobacco Trust Fund, as
follows:
(a) To the Health and Disease Research Account, which is heireby
created, five percent (5%), allocated to the following Sub-Accounts for th?
pu rposes st a ted t herein :
(l) Thirty-four percent (j4'%) shall be deposited in a Tobacco Control
Research Sub-Account, which is hereby created. Allfunds in the Tobacco
Control Research Sub-Account shall be continuously appropriated to
the University of California to be used solely to supplement the Tobacco
R4lated Disease ReseaTch Program described in Article 2 (commencing
with Section 104500) of Chapter'l of Part 3 of Division 103 of the Health
and Safety Code. The research funded by the Tobacco-Related Disease
Research Program with these supplementary funds shall include, but not
be Iimited to:
(A) Research to imprbve the effectiveness of tobacco control effirts
in California, including programs and strategies for governmental and
other organizations to lbduce tobacco use and exposure to secondhand
.smoke: and
(B) Research on the prevention, causes, and treatmeht of tobacco-
related diseases, including, but not liniited to coronqry heart disease,
cerebrovascular disease, chronic obstructive lung disease, and cancer.
(2) Fourteen and one-half percent (14.50ok) shall be deposited.in
a Ccincer Registry Sub:-Account, which is hereby created. All funds in
the Cancer'Registry Sub-Account shall be continuously appropriated to
the State Dppqrtment of Health Services to be used solely for a.statewide
population-based ccincer surveillance system as provided for in Chapter 2
(commencing with Section 103875) of Part 2 of Division 102 of the Health
and Safety Code.
(3) Twenty-fve and threq-fourths percent (25.7594) shall be deposited
in a Breast Cancer Research Sub-Account, which is hereby created. All
fi;nds in the Breast Canier Research Sub-Account shall be continuoiusly
appropriated to the University ofCalifornia to be used solelyfor the Breast
Cancer Research Program provided for in Article I (commencing with
Section 104145) of Chapter 2 of Part I of Division 103 of the Health and
Safety Code.
(4) Fourteen and three-fourths percent (14.75o/o) shall be deposited
in a Cancer Research Sub-Ac,count, which is hereby created. Allfunds in
the Cancer Research Sub-Account shall be continuously appropriated
to the State Department of Health Services to be used solely for the
Cancer Research Program described in Section 104l9l of the Health and
Safety Code, with afocus on applied research, which includes but is not
limited to, rdsearch that is geared towards the accelerated transfer of
recent laboratory and clinical technologic advances into primary care,
public health and community settings so that the majority of California's
population may beneft. This research shoull be focused on converting
recent discoveries into interventions and technologies, proving that they
work, and learning how besl to apply them.
(5) Eleven percent (11%) shall be deposited in the Lung Cancer
and Lung Disease Research Sub-Account, which is hereby created. All
funds deposited in the Lung Cancer and Lung Disease Research Sub-
Account shall be continuously appropriated to the Universily ofCalifornia
to be used solely to provide research grants to develop and advance
the understanding, causes, techniques, and modalities effective in the
prevention, care, treatment, and cure oflung disease. For purposes ofthis
Section, the lung disease research areas shall include, but not be limited
to lung cancer, asthma, tuberculosis, ahd chronic obstructive pulmonary
disease, which includes chronic bronchitis and emphysema.
(b) To the Health Maintenance and Disease Prevention'Account,'
which is hereby created,forty-two and one-foirth ofone percent (42.25%o),
allocated to the following Sub-Accounts for the purposes stqted therein:
(1) Six and three-fourths percent (6.75%o) shall be deposited in the
Tobacco Control Media Campaign Sub-Account, which is hereby created.
Allfunds in the Tobacco Control Media Campaign Sub-Account shall be
continuouily appropriated to the State Depaftment of Health Services to
be used solely for media advertisements and public relations programs to
prevent and reduce the use of tobacco products as described in paragraph
(1) of subdivision (e) of Section 104375 of the Health and Safety Code.
(2) Four and one-hrilf percent (4.5096) shall be deposited in a
Tobacco Control Competitive Grants Sub-Account, which is hereby
created. Allfunds in the Tobacco Control Competitive Grants Sub-Account
shall be continuously appropriated to the State Department of Health
Services to be used solely.for the competitive grants program directed at
the prevention oftobacco-related diseases as described in Section 104385
ofthe Health and Safety Code.
(3) Four and one-fourths percent (4.25"/") shall be deposited in a
Local Health Department Tobacco Prevention Sub-Account, which is hereby
created. All funds in the Local Health Department Tobacco Prevention
Sub-Account shall be continuously appropriated to the State Department
of'Health Services to be used solely for local-health-department-based
programs to prevent tobacco use as described in Section 104400 of the
Health and Safety Code. Notwithstanding Section 104380 ofthe Health and
Safety Code,fundsfrom the Local Health Department Tobacco Prevention
Sub-Account shall be appropriated to local lead agencies based on each
county's proportion of the statewide population.
(4) One-halfpercent (0. 5096) shall be deposited in a Tobacco Control
Evaluation Sub-Account, which is hereby crearcd. Allfunds in the Tobacco
Control Evaluation Sub-Account shall be continuously appropriated to
the State Depertment of Health Services to be use.d solely for evaluation
of tobacco control programs as required by subdivisions (b)'and (c) of
Section 104375 ofthe Health and Safety Code.
(5) Three and one-half percent (3.50%) shall be deposited in a
Tobacco Education Sub-Account, which is hereby created. Allfunds in the
Tobacco Education Sub-Account shall be continuously appropriated to the
State Department of Educa.tion to be used solely for programs to prevent
or reduce the use of tobacco products as described in Section 104420 of
the .Health and Safety Code. Any program receiving funds pursuant to
this section must participate in program evdluati;ns conducted by the
State Department ofHealth Services pursuant to Article I (commencing
with Section 104350) of Chapter I of Part 3 of Division 103 of the Health
and Safety Code. At least two percent (2%) ofthe monq, in the Tobacco
.Education Sub-Account shall be used solely for administration of the
department's tobacco prevenlion.education progrqm qs described in
Sections 1Q4420 and 104425 ofthe Health and Safety Code.
(6) fwo and one-fourths percent (2.25%) shall be deposited in tha
Tobacco Control Enforcement Sub-Account, which is hereby created. All
funds in the Tobacco Control Enforcennent Sub-Account shall be used solely
for programs to enforce tobacco-related statutes and policies, to enforce
legal settlement provisions, and to conduct law enforcement training and
technical assistance activities, and shall be approp.riated as follows: '
(A) Frfty percent Q0%) of the funds in the Tobacco Control
Enforcement Sub-Account is continuously appropriated to the Slate
Department of Hbalth Services to be used'to support programs, including,
but not limited to: providing grants to local law enforcement agencies to
proiide training andfundingfor the enforcement ofstate and local tobocco-
related laws and policies, including, but not limited to the illegal sales of
tobacco to minors, tobacco retailer licensing and exposure to secondhand
smoke; and increasing investigative aclivities, compliance checks and
other appropriate activities to reduce illegql sales of tobacco products to
minors under the Stop Tobacco Access to Kids Enforcement (STAKE) Act,
pursuant to Section 22952 of the Business and Professions Code.
(B) Twenty-fve percent (25%) ofthefunds in the Tobacco Control
Enforcement Sub-Account is continuously appropriated to the California
OJfce of the Attorney General to be used for activities including, but
not limited to: enforcing laws that regulate the distribution and sale of
cigareltes and other.tobacco products, such as laws that prohibit cigarette
smuggling, counterfeiting, selling untaxed tobacco, selling tobacco without
a proper license and selling tobacco to minors; enforcing tobacco-related
148 | Text of Proposed Laws * * *
(PROPOSITION 86 CONTINUED)
t-
* * * TEXI OF PROPOSED LAWS
laws, court judgments, and settlements, such as the Tobacco Master
Settlement Agreement and the Smokeless Tobacco Master Settlement
Agreement, entered into on November 23, 1998, by the State of Califurnia
and leading United States tobdcco product manufacturers, including
tritcking tobacco industry advertising, marketing, and promotional
activities in California, and bringing actions dgainst violators; and
assisting local law enforcement agencies in the enforcement of tobacco-
related statutes and local ordinances through technical assistance and
training activities.
(C) Twenty-five percent (25%o) of the funds in the Tobacco Connol
Enforcement Sub-Account is continuously appropriated to the State Board
ofEqualization to beused to enforce laws that regulate the distibution and
sale ofcigarettes and other tobacco.products, such as laws that prohibit
cigarette smuggling, countetfeiting, selling untaxed tobacco, and selling
tobacco without a proper license
(7) Eight percent (8%o) shall be deposited in a Breast and Cervical
Cancer Early Detection Sub-Account, which is hereby created, All,funds
in the Breast and Cervical Cancer Early Detection Sub-Account shall be
continuously appropriated to the State Depdrtment of Health Services
to be used solely for breast and cervical cancer prevention anl early
detection services that resalt in the reduction ofbreast and cervical canter
morbidity and mortality in Califtrnia. These early detection services
shall be part of a program that includes a significant.quality assurance
and improvement component, including patient and provider education,
community outreach, and program evaluation.
(8) Eight and one-halfpercent (8.50%) shalt be deposited in a Heart
Disease and Stroke Prevention Sub-Account, w.hich is hereby created. All
funds in the Heart Disease and Stroke Prevention Sub-Account shatl be'continuously appropriated to the State' Department of Health Services
to be used solely for the California Heart Disease and Stroke Prevention
Program provided for in Section 104142 of the Health and Safety Code.
The intent of this progran is to reduce the risk, disability and death from
heart disease and slroke.
(9) Seven and three-fourths percdnt (7.75%o) shall be deposited in
an Obesity Prevention, Nutrition and Physical Activity Promotion Sub-
Account, which is hereby created. All funds in the Obesity Prevention,
Nutrition and Physical Activity Promotion Sub-Account shall be
appropr i ate d as follows :
(A) Seventy percent (70%o) shall be continuoully appropriated to the'
State Department of Health services to supporl programs and activities
to be used solely to prevent obesity, diabe'tes, and chronic diseases
through the promotion of community norm change, healthy eating, and
physical activity. The departmint shall design, develop and enhance a
comprehensive program.that includes, but need not be limited to: media
advertisements and public relations programs; competitive grants to
commwfity based organizations and agencies; grants to local health
departments; research and evaluation ofprogram effectiveness; and those
provisions contained in Section 104650 ofthe Health and Safety Code.
(B) Thirty perceyt (j0%) shalt be continuously appropriated to
the State Department,of Education to be used solely to design, develop,
and support programs and activities to prevent obesity, diabetes and
chronic diseases through the promotion of and access to, healthy eating.
and physical actil)ity for child.ren and'their families within the context of
coordinated school health..Such programs and activities shall include
but need not be limited to, promotion of, and access to, fruits, vegetables
and other healthy foods; promotion of moderate and vigorous. physical
activity; promotion ofhealth education and physical education; research,
surveillance and evaluation of program ffictiveness; professional
development for teachers and other appropriate staff in health education
and physical edueation; and monitoring local educational agencies'
compliance with state lawsfor nutrition and physical education.
(C) The State Department of Health Services, in consulta,tion with
the State Department ofEducation, shall establish an Oversight Committee
composed of Ij members Selectedfor their expertise in nutrition, physical
activity and education, and related disciplines pertinent to the purposes
of this Sub-Account. Membership shall include, but need not be limited
to, representation from the following : health and education organizations,
public health and local education agencies, advocacy groups, and
healthcare professionals and oiganizations.
The Oversight Committee shall advise the State Department of Health
Services and the State Departrnent of Education with respect to policy
development and. evaluation and provide guidance on strategic priorities,
coordination, and collaborption among state agenciei with regard to the
programs funded by the Obesity Prevention and Nutrition and Physical
Ac tivi ty P romot ion S u b-A ccou nt.
(10) Four and one-fourths percent (4.25%) shall be deposited in an
Asthma Pretention and Control Sub-Accouit, which is hereby created. All
funds in the Asthma Prevention and Control Sub-Account shall be used
solely to support asthma assessment, community intervention strategies,
tlaining and technical assistance, surveillance, evaluation of asthma
prevention and control activities, translational research to implbment
effective interventions, and school-based asthma education, ti"aining and
coordination activities. These funds shall be appropriated as follows :
(A) Sixty percent.(60%o) ofthefunds in the Asth/na Prevention and
Control Sub-Account is continuously appropriated to the State Department
ofHealth Services tofund programs aii services including, but not limited
to those described in Chapter 6.5 (commencing with Section 104316) of
Part 1 of Division 103 of the Health and Safety Code, including community
childhood asthma prbgrams within the California Asthma Public Health
Initiative and asthma surveillance within the Environmental Health
Investigations Bianch, and to support media advertisements, public
relatiohs and other public education activities. Areas in the state that have
the highest asthma prevalence, and areas with low socioeconomic stdtus
populations shall receive priority consideration in the expenditure ofthese
.funds.
(B) Forty percent (40%o) ofthefunds in the Aupthma Prevention and
Control Sub-Account is continuously appropriated to the State Department
of Education to improve the managemen! of asthma within the school
setting. Funds shall be for activities and programs, including, but not
limited to: statewide coordination of asthrna programs and services, the
development or purchase ond dissemination ofbducational and *aining
materials, delivery of asthma education and training to school personnel,
and the reduction of asthma triggers in the indoor and outdoor school
environments. Schools in areas of the state that have the highest asthma
prevalence, schools serving low sgcioeconomlc status students and school
districts that do not have school nurses shall receive priority consiferation
in the expenditure ofthesefunds.
(11) Four and one-fourths percent (4.25%) shall be deposited in a
Colorectal Cancer Sub-Account, which is hereby created. Allfunds in the
Colorectal Cancer Sub-Account shall be continuously aplropriated to the
State Department of Health Services to be used solely for the Colorectal
Cancer Prevention, Detection and Treatment Program described in
Article 2.7 (commencing with Section 104195) of Chapter 2 of Part I of
Division 103 of the Health and Safety Code. The intent of this program is
to reduce the incidence, morbidity, and mortality due to colorectal cancer.
This program shall include various public hdalth components, including
a signifcant quality assurance and improvement ibmponent, patient qnd
provider idy.cation, community outreach, and progiam evaluation. No
less than forty.percent (40%o) of the funds for this program shall be used
for those non-clinical public health components
(12) Fortyfive and.one-half percefi (3.50%) of the Fund shall be
deposited in the.California Healthy Kds Sub-Account, which is hereby
createdto ensure that every child in CqliJbrniais eligiblefor comprehensive,
afforQable health insurance and has access to needed health care. All
moneys in the Caldornia Healthy Kids Sub-Account shall be continuously
appropriated to the California Health and Human,Services Agency only
for implementation by the Stdte Department of Health Services and the
Managed Risk Medical Insurance Board of Chapter 17 (commencingwith
Section 12693.99) ofPart 6.2 ofDivision 2 ofthelnsurance Codepursuant
to the provisions and restrictions thereof, No less than ninety percent
(9 0 %o) of the funds. appropriated from this Sub-Account shall be us ed for
implementation of Section 12693.99 of thd Insurance Code. No more than
ten percent (l0Yo) of the funds appropriated from this Sub-Account shall
be usedfor implementation ofSection 12693.991 ofthe Insurance Code.
(c) To the Health Tredtment and Services Account, which is hereby
cteated, fiftytwo and three-fourths percent (52.75%0), allocated to the
following Sub-Accounts for the purposes stated therein:
(1) Ohe and three-fourths percent (1.75%) shalt be deposited in a
Tobacco Cessation Services Sub-Account, which is hereby creat?d. All
funds in the Tobacco Cessation Services Sub-Account shall be continuously
appropriated to ihe State Department of Health Services to be used solely
to provide tobacco cessation programs and services to assist adult and
* * * Text of Proposed laws I 149
TEXT OF PROPOSED LAWS * * *
,minor tobacco ttsers to quit tobocco. It is the intent of this Act that this
appropridtion supports programs and services including, but not limited
to counseling, referral and support services, pharntaceutical tobacco
cessalion procltrcts, and truining and technical assistance activities.
(2) One and three-fourths percent (1.75%) shall be deposited in a
Prostate Cancer Treatntent Sub-Account, which is herebv created. All
funds in the Prostate Cancer Treatnent Sub-Account shall ie continuously
appropriated to the State Department ofHeulth Services to be used solely
to provide for prostate cancer prevention and treatment for low income
and uninsured men.
(3) Five and three-fourths percent (5.75%) shall be deposited in the
Community Clinics Uninsured Sub-Account, which is hereby.created to
fund nonprofit clinic corporations providing vital health core serviceto the uninsured in accordance with Article 6 (commencing with
Section 1246) ofChapter I ofDivision 2 ofthe Health and Safety Code.
All funds in the Community Clinics (Jninsured Sub-Account shall be
continuously appropriated to the State Department of Health Services
solelyfor implementation cif Article 6 (comhenciig with Section 1246)
of Chapter I of Division 2 of the Health and Safety Code.
(4 ) (i ) F ive an d.t h re e -fo u r t h s p e r c e n t ( 5. 7 5 %o) to th e Em er gen cy C a re
Physician Services Sub-Account, which is hereby created. Ailfundi in the
Emergency Care Physician Services Sub-AccouTtt shall be continuously
appropriated to the State Department ofHealth Sirvices to be adrtinisterid
and allocated for distribution through the California Healthcare forIndigents Progratn (CHIP), Chapter 5 (commenciigwith Section 16940)
of Part 4.7 of Division 9 of the LI/elfare and Institutions Code.
(ii) Three-fourths percent (0.750(,) to the Rural Emergency Care
Physician Services Sub-Account, which is hereby created. AIt funds in
the Rural Emergencv Care Physician Services Sub-Account shall be
continutusly appropriated to the State Department ofHealth Services to
be'administefed and allocated for distribution through the Rural Health
Se,rvices Program (RHSP), Chapter 4 (commencing with Section 169j0)
of Part 4.7 of Division 9 of the Welfare and Institutions Code.
(iii) Funds alloccrted to the Emergency Care physician Services
Sub-A\count and Rural Emergency Care Physician Services Sub-Account
shall be used only for reimbursement of physicians for losses incurred
in providing uncompensated emergency services in general acute cd.re
hospitals providing basic, comprehensive, or standby emergency services,
as defned in Section 16953 ofthe Welfare and Institutions Code. Funds
shall be transferred annually by ths pspartment to the physician Services
Accou4ts in the county Emergency Medical Services Fund established
pursuant to Sections 16951 and 16952 of the Welfare and Institutions
Code, and shall be paid only to phys.iqians who directly provide emergency
medical services to patients, based on clqims submitted or a subs"4ueit
reconciliation of claims. Payments shall be made as provided in Sections
16951 to 16959, inclusive, of the llelfare and Institutions Code, and
pq,ments shall be made on an equitable b{tsis, without preference to
any particular physician or group of physicians. Funds allocated by
this Section to cotnties that have not established an Emetgency Medicil
Services Fund pttrsuant to Section 16951 shall be deposited into the
Department ofHealth Services EMSA Contract Back program, to be used
only for the reimbursement of uncompensated emergincy services, as
defned in Section 16953, and payments made, based on claims subnifted,
in accordance with the procedures and policies established in Sections
16952 through 16959 ofthe lilelfare and Instittitions Code.
(5) Three-fourths percent (0.75%) to the Medically (Jnderserved
Account created by Business and Professions Code section 2154.4.
All funds in the Medically (Jnderserved Account shall be continiously
appropriated to the Medical Board of California to promote the practice
of medicine in areas of the state underserved by physicians to low-
income patients pursuont to the Steven M. Thompson Physician Corps
Loan Repayment Program set forth in Article 7.7. (commencing with
,lection 2154) ofChapter 5 ofDivision 2 ofthe Business and professions
Code.
(6) Nine percent (9%) to the Nutsing llorkforce Education Sub-
Account, which is hereby created. All funds in the Nursing Workforce
Education Sub-Accotmt shall be contiruously appropriated to the Office
of Statewide Health Planning ahd Development to be used soleiy to
expand nursing edication opportunities and capabilities to meet nursing
workforce demands pursuant to Section 128225.5 of the Health and Safety
Code. Expenditures from the Nursing llorkforce Education Sub-Acciunt
shall be made according to thefollowingformula:^
150 I Text of Proposed Laws* * *
(A) Eighty-six percent (86%o) shall be used to support the expansion
of California Board of Registered Nursing ("BRN") -approved r'egistered '
nurse education pre-licensure programs in the California Community
Colleges, the Califtrnia State (Jniversity and the lJniversity of Califurnii,
and to support the expansion of gtaduate nursing education programs
(MSN, DNSc/Ph.D.), and to support California Advanced pictice
Registered Nurse Programs at the California State University and.the
University of Califurnia.
(B) Fottrteen pereent (14%o) shall be used to support the expansion
of BRN-approved privately operated registered nurse education pre-
lic.ensure programs, the expansion of privately operated graduate *uising
education programs (MSN, DNSc/P|.D.), and to support the expansioi
of privately operated California Advanced Practice Registered Nurse
Progrants.
(7) Seventy-four and one-ha(percent (74.50%o) to the Emergency
and Trauma Hospital Services Sub-Account, which is hereby created. Ail
funds in the Emergency and Trauma Hospital Services Sub-Account
shall be continuously appropriated to the Stdte Department of Health
Services to further the provision of hospital and medical services to
eme,rgency patients in California pursuant to Chaptet 4.5 (commencing
y)ith Section 1797.300) ofDivision 2.5 ofthe Heatth and Safety Code. -
30132.4. All moneys allocated to and deposited in the specifc
Accounts and Sub.Accounts of the Tobacco Tax of 2006 Trust Fund siall
be expended as set forth pursuant to the requiremenls specific to each
Account or Sub-Account as setforth in Sectioi 30132.j. Notwithstanding
Government Code Section 13340, any moneys allocated and appropriated
to any ofthe Acciunts or Sub-Accounts ofihe Tobacco Tax oj-2006 Trust
Fund that are not encumbered or expended within any applicable period
prescribed by law shall, together with the accrued interest on the amount,
revert to and remain in the same Account or SybLAccountfor encumbrance
and expenditure for the next fscal periotl.
30132.5. (a) All moneys raised pursuant to the tax imposed by
Section 30132.1, and all moneys raised by the resulting incredse in the tax
on tobacco products required by subdivision (b) ofSection 30123, shall be
appropriated and expended only for the purposes expressed in this Act.
Funds appropriated pursuant to this Act shall be used only to supplement
existing levels of service and not to supplant funding for existing levels
of service. Fun'ds may be used to mdtch available stiti,federal, or tocaiJ
funds. Except as specifed in subdivision (b), no moneys in the Tobacco
Tax of 2006 Trust Fund shall be used to supplant state or local General
Fund moneyfor any purpose, including back-flling state or local General
Fund obligations.
(b) In addition to the provisions of subdivision (a), all moneys
raised pursuant to the tax impoied by Section 30132.1, and all moneys
raised by the resulting increase in Ihe tax on tobacco products requiredby
subdivision (b) ofSection 30123, shall not supplant thefollowing:
(1) I ocal funds used to secure state or federal matching funds forany children's health services, children's. health, or medical assistance
programs, including but nbt limited to, thefollowing: (A) Healthy Families,
(B) Medi-Cal, whetherfull-scope or emergency or pregnancy-related care
only, and (C) the Chiid Health and Disability prevenil;n program; but not
including funds generated by or expended from the California Children
and Families Trust Fund (Division 108 (commencingwith Section 130100)
of the Health and Safety Code) or from the County Heahh Initiative
Matching Fund (Part 6.4 (commencingwith Section 12699.50) of Division
2 ofthe Insurance Code);
(2) State funds used to secure federal matching funds for any
children's health services, children's health, or medilcal assistanie
programs, including but not limited to thefollowing:
(A) Healthy Families,
(B) Medi-Cal, whether full-scope or emergency or pregnancy-
relaled care only, and
(C) The Child Healthpnd Disability Prevention program; or
(3) State orfederalfunds to continue or maintain the amount, duration,
scope and structure of benefts that existed as of September 30, 2005 for.any chtldren's he,alth services,.children's health, or medical assistance
progroms, including but not limited to thefollowing:
(A) Healthy Families,
(B) Medi-Cat, whether full-scope or emergency or pregnancy-
relaled care only, and
***TEXTOFP ROPOSED LAWS
TPROPOSITIO N 86 CONTINUED)
TEXT OF PROPOSE DLAWS***
place as ofseptember 30.
( a) oJ Sectio n I 2 693. 7 0 ;
2 0 0 5' as set for th in pa ragraph (5) of subdiv ision
(3) Are in compliance with Sections 12693.71 and i2693.72; and
rcn"[11,i';";7 Trrtlf,for Heakhv Fa m i n"''
"' t"inu scope Med i- Cat
w"ttir"'"iiii,',i,r,','"ir*"* ,tf"tio'n t4000) of Part i of Div;'t';;";f';;,,i' i, pi""'["',";];:;,:;f:)!;','r';;:share of cost. i,a",,n'" )tisil,iti,
(c) The confidenrialitv nn,! nyi,,-^_, ^.,^-, ..tosoi;,;'rri;;:;;;;;2,,ii"f;!::i:;ili;":;:i:?,:;:!;,1;#;f;:::;,
childrly se-eking, opptyinglo, o,
"nrolled in Healthy Families.
, r' ol!1,Xffi ' { : ) ":{i !:'j :' e n r o.! t e d t' H";;; ; ; ; "; i r i e s, t h ro u g h t h i s
oJ famities ol chiiiren "lo
",1n',''.buy oremiumi equa! t" th;t"";A'r;;;d
t ht;p ;;, ;;
"
;' i;Trz' h;i::!:! ;: "f ;:x ! ! F a n ii i e s o o t t n, o u i n t i i,
(l) Families ofchildren,up to and including t g years ofage who apply
';::;:::::;;";0"':r'!;:l'^tiF"'it;;';;;';i"ilZZi,,"tt"house.hoi,!
shatt not b; ";;;;;i"";Zli!:,i1.'oo '""ent
of thefede.rot po,",tv t',)t
:i::lii;if !"*;:,y;*T".:7,::.f :i,:;;f ;":!;f ;,"l"A,lX.n
theredera.tpover;;i;;;,:;":;:1:i,:tr;:liri:!Ji,;i;i::::;;:;ii;;;I
and famities of chitdren uo
,:o o:d iiitraiig ,i"y'")'i"ol on who appty
' ;; : ; :,' : :: ;;" :i
": : o1 :: | :
o t F a 1i ! i e s
";,
; ; ; ;';" ;; ;, n b t e h o u s e h. o t d
snarr ,ot t" ,ei;;;;;"';';;ii:;f,:::,fil:;,t or the redemt po,",,y r",,Jr
(2) Families of childre
countable household incom!^Y!:
ou "ntlled in Heatthy Families whose
itiri"It"liiz::,*,:]iry;::?;i;:"r"rr1i,;:L,r,,,ii*.noo,"",'-ii";;,';"r;'";i;r!;:;:,i,i",l|::"r::ffi;;l:::"t;ill:;*
i:; "r,;i
";:: : ! ;', i f"i'; ;:: :: : : a' p, ",, a" i, "i, iw" ! l 0
.p ", " "
n t oi r h "en ro I le i t, iir'iii' r, * t ti! !.'.. !* ^ :' ^.a.^ co u n ts ava i t a b I e n
"
n iia)|",200through;;;;;,;;;";;;iff
,1,i1.!i;!;:,Ii::,f :;:If :,:,:::,:,:;i:i'!f ,l,i lui
"'
i? i,lz," I!!' : :" ::' " : a n' n J, ii i' ii,,i i i ii i, 0.,
" 1o,,,, ",'level. - ..ter than 250 percent
"y tn" y"a"*i )or"i,
(e) Less,restrictive. Healthy Families etigibility rrquir"*"rt, tt,onthose estabtished at subdirision iti ^iri,i)tr rtwg,ltwgtfgt*tffi
be-,,less ristitctive,, if.under rurh r"nuir.?-l-criteria
are considered to
individuats *oy t" "tigiti;|;, *^"irit #{f,?"nts
or .criteria, additional
dre otherwise i.tigitt"-i" ,i,"a",'i";:;;;;,:";;:::rT!,:i"indi.viduats who
12693.991. (a) The Monag"d Rirk Medical.lns^urance Board andthe Stlte Depa,nment "f ni",i,E"I"_xi,agencies',)sh'a,co.nrinuetuadm,r,r,rrii"r/Xifr'try;";,";:#,#::i:t:,
progrq ms, respect i ve!y, for a I t el igi bt e ch itd re, no u
"oo,ajitr t" t n "i ir,l),ii;| i ^iri,,,i!:,rre
ad m ini s.tering a genc ies
cost.-efective,
"oo,dinot"i o)'i ;";;:;;;;';::::1!.'...o!.,"o"h program in a
seeking, applying for ., .rlriuf,r"iiii_tunner wtth respect tb children
a d n i nis t e) fn[' og" n" i ", s h a I I ? oo rd i n a te
"
rf!,i..: !? "0,
Fa m i I i es. B o r handoutreachlaid,noiloiig-n"ii,;,,t;;;;",r:;ii:,,iiiiiX,i,i!!j!i!i!;
agency activities with enforieable o""ouilo,iitiry. !mplementation ofcluriesand responsibitities th,ai requirl-;;;;;;t:;;i;;tbn of both agencies.sha!t bed o n e j o i ntty, a s c o ord i n a t eh i
"; ;;;; ;;;;"b, as r e e me n t.(b) The administering og"nri"r, irTonrultotion with the HealthvKids oversight o.ra ,e"iuf,niiiii,
,t,i^,rrion.
shau desisn an|implement streamlined .pptiiiirri lr,iAriJnt ord ,"t"ntion procedure.t ,
HX f,:JT:i^',_*: .r:,i ;ii"ni'"","iii'[t" u.nder Heatrhy Famitiesaliogr"p,ogiill!:#;t!l:ffi,':;i::;;l;r;,':i:;::;i,i"Ji;
administering ,f:::i in" i^trtr,"ri'r"g og"n"i", shail imptenentstrqtegies including at leasnhe.follo.iin ii.are etigibkfor Heit,W ri*iii"!,)'";;;f_;" ;""'" that att chitdren who
ptace in s"pi"rln so, 2005, and att ch,6rnr!!!!1,h" e.lig.ibitiry rutes in' Fa m i r i e s u i d e r t h i s c n, p, ",'," *i,i
" ; ;;i;" :,:::: ::,e
t i g i b t e fo r H e a r t h y
l5,2l Text of proposed laws* * *
"r,,0{l f#i!{1,:::::y,o requiremenrs for famities to enrou their
ao" u' "nioi o,' i |;i:;;;:'f ?: l' ng as r hev're m i in et i gi bte bv ie;' ;";:;;;;
fert"ral la.. -"- "ot uytng ulormalion only to the exlent reiuir;;;;;;",
(2) Expedite and
.streamlin.e enrollment by offering enrollmenr,which may be known os ',express ,"r;,:;;::'rriLiit.jenropment, throughentry.points such as the Natiohal S"noot ti)"in,'i1""su pp t e m e n ta ! S pec i a r Nu *i t i on p r;;;; ;;; ;;;2i,ifrih;,,X; ftl{f;l,:'!:;i:it:i J ;i:f y m' a nd t h e. s ni ii fi ", i i' ",'i 6i s a b i t i t v pre ve nt i on
u::iitYnlnii"'f "?!i;"?;i'j::::':';':;fr '#x':'X:x:n
7', "tr "iilil'i,;;;,;: ::::.!'?:t to subdivisio.n tit 'r s"",ion Dibi ii
y;l;;i:iii:i,;i;,,if,ii!,:1,irrli,;;:i;:i:,l:i"::i":;::l:::!;x
(3) Develop o O,oo ,ro,^"::yr: that eligible, enrolled children do notexperience a gap in benefits and n "rrir""""r,'trrii"ol.redical care forclildyn when ienewing"t
Fam i t ies, o, y,o, o ro"fi i[i I;::;(;::f ,t";i:::"! :i! c;| ;i; ;;;i;;
" t oc a t CH I " ). rn", t o "
-"i) i ",: ::,:,: :' :':i!: ce p ro s ra m (h e re i nafte r
u n
"
* o i o,'a | * ;;: ;, :;T,":l:!
"
i
.n
c t u d e s i m p t t"rv i n i'" n n w o I 1o, n s'o i d
. (4) Facilitate outreach,and education Io current,ond poteotiotbeneJic iar ies, appI i ca n ts. h"at t h "o," l,ol,,iir.' "onT i i,i rr rr.(5) ln coordination with . the Healthy Xi;, Or"rrigl,t ooa.Accounta bi I i ty Comm i ss i on. r, a y1 t t
"-
"irirl"rri)i!"
"onya" rt idlity i n::: : :i :; ;: ::x';:!'!i : :::' : l'r s
" "
u'1; i zz i i' b'e
"
u n d "' t o k " o p i t o t
:!?,1:;i1,i;;;i;;:;:"',f :":d:;:',:f;::X:::i:f ::;;:,1:.;NV:Xchttdren infanilies with incomes.a.b*" SOO p"r"")i iJilr"panrot por"rtyIevel: and recommend to tlte Leg,rt",rr ri*i"rir, fo7,i,l
12::i,,:
poputation based upoi ,n" p,ti,i'*,"."1,"i;":;":;,',':,f"":;::;::,
n *" lo,/,,'{,,,, i?#i i,i::i:, :::!^' h e,
.H ea.! rhv K ids ove rsight and
*:ix:;iyxiji*"";v;f :i::,f:::i:,;::;;;,,t;,f t::w
"
t i g i t t
" fo, Ii
"
o[, i;,' ;; *:t:l# y ! :
h i t ( .w
h g .
a pg t i e s fo r a n d i s a * ", * i "itn a loca! CHt both o, of nnOurruort
to this Chapter, ora *no i, "r,ioii)y.1i1,11ry*ii1',:,oiui,iiX"l[f li,:{:::;:l:i,;:::i,:::l:E:ill;
r i i i' rwiiiiii { :!'":- * *::jl tl i:ir ;* *,
or otherwise remain in his o!!,1"n'!l .'"'ewal' a chid nay switch plans
:[:;:,!,;I:xiii,ril?,itl'"{,;;,:;2f f;;;,Y;'r:';;:l::::ir;;:l
(7) Maxi m ize federa I.a a1a 11 j7g lands ava i lable for e! igi bl e ch i ldren,s:f ::i!r:;:i;::::,r;i;;,I:1,::::",i,;i;";:;;"i:/,o,liyonqimptemen,
programs to maximize avan'd :ntegrate existing children's he"nn iiir""""
matching funds available'f!.u.
l^".!"4"'ot o'd state matchingfunar, ,u"n' o,
t", "7,'li")' in ;;;,' ;i: :o{f;: : e rse n cv o' p'"g n o'
"v-'""[o'"a u" i i-C" r
(8) Take any additional steps necessary to ensure thatfrom a chitd,sp e r sp e c t iv e, Me d i_ C a I an d He y i n y i, ii i",i
"p "7"i!, ir, o, * r,
" o r o s ra m.@ The Healthv Kid.
i s h ere by es t a b t i s h ed, o n rt, r? Y'.t :rh t, a nd A c co u n t a bi I i t y co m m i ss i o n
r h i s c h i p t e r i a; ;",; ;,; ; "" ; rff , :!; ; : f ;" :;:::,, ::,": y;y f: :,, W i!l',,;',::!:irtYl,;:;:;11;:.r:: "tr "niia,ii,i,i"ivf'ni)ciat audits of the
iyaly,;;;;"l1it";:;"fr2?!iifr::!{"i,::r;:#ll,l:i/*:,:",:,1:;or operation qf Heatthv royitll ana Ueai_iri"a'nn,,i,u", anticipatedsavings..bac.k into provi2ing heam inrrroni ii ^iit ,i',,or"o
"0,,0{!l,o'XI"|i!il::i:;iX:,,consist,ort5-m;;;;;";;,';':rrertisein, na t i, c n a "-,"1)", "",,: "',,'i)!iili1;,'i l:1,::r' :;i:;:",n -sio,,, o,)' (A) Consumers;
,ro, {!l ofrlnt'
me r advoca Ies, i ncl uding represen ta t ives of spec if c c hi td
,rro,lflr;u"o"' care providers, including physicians and public
(D) Heatth plans, including local CHIs: and
(PRQPOSITION 86 CONTINUED)* * *TEXT OF PROPOSED LAWS
(E) Other stakeholders, including bitt not limited to schools, business
nnd organized labor, and county agencies.
Q) The Speaker of the Assembly, the Senate President Pro Tempore,
and the Governor shall each appoint fve commissioners such that each
appoints one commissionerfrom each ofthefve categories.
(3) Members sh;all serve without compensation, but shall be
reimbursed for all actual and necessary expenses incuted in the
performance of their duties.
(4) The tern of each member shall be three years, to be staggered so
that approximately one+hird ofthe appointments expire in each year.
(5) In carrying out its duties and responsibilities, the Commission
may do all of the following:
(A) Meet at least once each quarter at any time and location
convenient to the public as it may deem appropriate. All meetings ofthe
Commission shall be open to the public.
(B) Establish technical advisory committees such as a committee of
parents and guardians.
(C) Advise the Governor and the Legislature regarding actions the
state may take to improve access to, enrollment in, retention of,, and use of
health coverage for chiidren and their families.
(D) Recommend strdtegies to increase the fficiency of Medi-
Cal and Healthy Families, reduce paperwork requirements for beneft
administration, and implement electronic gqteways and other "express
lanes" foi increasing enrollment.' (E) Recommend strategies for transitioning children among and
between local CHIs, Medi-Cal'hnd Healthy Fdmilies.
(F) Recommend voluntary strategies with employers to maintain or
increq.se employer-sponsored health coverage for employees' dependents
under the age of 19 years.
(G) Provide guidance in the development of the pilot research
demonstration project for pursuiig affordable health insurance or
assistance options for uninsured children whose families have incomes
over 300 percent ofthefederal poverty level and, based on the results of
the pilot research projects, recommend to the Legislature sftategies for
increasing coverage for this population.
(H) Study the adequacy of the provider network and seek broad
participation from traditional and safety-net providers by recommending
strategies to ensure adequate provider reimbursement rates.
(I) Employ all other appropriate strategies necessary ol convenient
to enable it to fully and adequately perform its duties and exercise the
powers expressly granted.
12693,992. (a) For the purposes specified in this Chapter and
subjec.t to Section 30132.5 of the Revenue and Taxation Code, funds
app ropr iated from the C alifoinia H ealthy Kids Sub-Ac count es tablished
at paragraph (12) ofsubdivision (b) ofSeclion 30132.3 ofthe Revenue and
Taxation Code shall be used only for:
(1) The provision of ahildren's health insurance, through Healthy
Families, onlyfor children defned in subdivision (b) ofSection 12693.99;
and
(2) Implementation of those measures contained in Section
I 2693.99 I .
(b) Funds expended or transfetedfrom the Califurnia Healthy Kids
Sub-Account shall supplement and not supplant thefollowing:
(t) Local funds used to secure state or federal matching funds for
any children's health services, children's health, or medical assistance
programs, including but not limited to thefollowing: (A) Healthy Families;
(B) Medi-Cal, whetherfull-scope or. emergency or pregnancy-related care
only; and (C) the Child Health and Disability Prevention Program; but not
includingfunds generated by or expended fi'om the California Children
and Families Trust Fund (Division 108 (commencing at Section 130100) of
the Health and Safety Code) orfrom the County Health Initiative Matching
Fund (Part 6.4 (commencihg with Section 12699.50) of Division 2 of the
Insurance Code).
(2) State funds used to secure federal matching funds for any
children's health services, children's health, or medical assistance
programs, including but not limited to thefollowing:
(A) Healthy Families;
(B) Medi-Cal, whether full-scope or emergency or preglnancy-
related care only; and
(C) The Child Health and Disability Preyention Program.
(3) State orfederalfunds to continue or maintain the amount, duration,
scope and structure ofbenefts that existed as ofseptember 30, 2005 for any
children's health services, children's health, or medical assistance programs,
including but not limited to thefollowing: .
(A) Healthy Families;
(B) Medi-Cart, whether full-scope or emergency or pregnqncy-
related care only; and
(C) The Child Health and Disability Prevention Program.
(c) The state may not increase a county's share ofcosts for children's
health sbrvices unless the state includes adequate funding to fully
compensate for such increased costs.
126h.993. (a) Nothing in this Chapter is intended to:
(1) Reduce or restrict any existing entitlement under Medi-Cal;
(2) Reduce or restrict the existing eligibility levels or the amount,
duration, scope or structure ofbenefits in place as ofSeptember 30, 2005
under either Healthy Families or Medi-Cal;
(3) Create a new entitlement for children enrolled in Healthy
Families;
(4) Preclude a childfrom eligibility for any other children's health
insurance, medical service or medical assistance program, including.but
not limited to restricted Medi-Cal or Medi-Cal with a share of cost;
(5) Preclude a child from eligibility for Healthy Families or Medi-
Cal ifless restrictive eligibility criteria qre enacted;
(6) Recluce or erode children's existing employer-sponsored health
insurance coverage:
(7) Restrict any public appropriations or private contributions for
the provision ofchildren's health insurance through Medi-Cal or Healthy
Families, such as federal fnancial match for state or cou.nty Medi-Cal
funding; county, regional or localfunding; privatefoundation grants, and
family premium co ntributions ;
(B) Prohibit eligibility for Medi-Cal or Healthy Families based on
concurrent eligibilityfor a local CHI; nor
(9) Create or require creation of a new state department or agency.
' (b) The State Department ofHealth Services and the Managed Risk
Medical Insurance Board may explore and utilize any options available
underfederal law to allow the use ofcharitable or otherfunding by private
and public not-for-proft organizations as a matchforfederalfunds for use
in the provision of coverage consisent with the provisions ofthis Chapter.
SEC. 7. Article 6 (commencing with Section 1246) is added to
Chapter 1 ofDivision 2 ofthe Health and Safety Code, to read:
Article 6. Community Clinics
1246. (a) Funds in the Community Clinics Uninsured Sub-Account
established at paragraph (3) of subdivision (c) of Section 30132.3 of the
Revenue and Taxation Code shall be administered by the State Department
of Health Services solely for the purposes ofthis Section. The department
shall allocate thefundsfor eligible non-proft clinic corporations providing
vital health care services, including services related to smoking cessation
programs to assist smokers to quit smoking, and educational efforts related
to tobacco prevention, to the uninsured. Thefunds shall be allocated by the
Department pursuant to the provisions of this Section.
(b) Annually, commencing August 1, 2007, the Department shall
allocatb to each eligible non-proft clinic corporation a percentage ofthe
balance present in the Community Clinics Uninsured Sub-Account as of
July 1 of the year the allocations are made based on the formula provided
for in subdivision (c) and subject to subdivision (d).
k) Funds in the Community Clinics Ihninsured Sub-Account shall
be allocated only to eligible non-profit clinic corporations. Funds in the
Community Clinics Uninsured Sub-Account shall be allocated to eligible
non-proft clinic corporations 'on a percentage basis based on the total
number of uninsured patient encounters.
(1) For purposes of this Section, an "eligible non-proft clinic
corporation" shall meet both of the following requirements :
(A) The corporation shall consist ofnon-proftfree and community
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clinics licensed pursudnt to subdivision (a) of Section 1204 or of clinics
operated by afederally recognized Indian tribe or tribal organization and
exemptfrom licensure pursuant to subdivision (c) ofSection 1206.
(B) The corporation must provide at least 1,000 uninsured patient
encounters based on data submitted to the Offce of Statewide Health
Planning and Development pursuant to the reporting procedures
established under Section 1216 for the year the allocations are macle.
(2) The total number ofuninsured patient encounters shall be based
on data submitted by each eligible non-proft clinic corporation to the Office
ofStatewide Health Planning and Development pursuant to the leporting
procedures established under Section 1216. Beginning August l, 2007 and
every year thereafter, the allocations shall be made by the department based
on data submitted by each eligible non-profit clinic corporation to the Office
of Statewide Health Planning and Development by February 15 of the year
the allocations are made.
(3) For purposes of this Section, except as otherwise provided
in paragraph (4), an uninsured patient encounter shall be defned as
an encounter for which the patient has no public or private third party
coverage. An uninsured patient encounter shall also include encounters
involving patients in programs operated by counties pursuant to Part 4.7
(commencing with Section 16900) and Part 5 (commencing v,ith Section
17000) of Division 9 of the Welfare and Instititions Code. An uninsured
patient encounter must consist of a primary qnd preventive health care
service, including tobacco cessation and prevention services, and
specialty care services traditionally provided by comprehensive primary
care providers.
(4) Each uninsured patient encounter shall count as one encount.er,
except that the encounters involving patients in programs opelated
pursuant to paragraph (l) ofsubdivision (aa) ofSection 14132 and Division
24 (commencing with Section 24000) ofthe Wzlfare and Institutions Cbde,
and pursuant to Article 6 (commencing with Section 124025) of Chapter
3 ofPart 2 ofDivision.106 ofthe Health and Safety Code shall count as
0.15 encounterfor purposes ofdetermining the total number ofuninsured
patient encounters foy each eligible non-proft clinic corporation.
(5) The Department shall compute each eligible non-profit clinic
corporation's percenlage of total uninsured patient encounters for
all eligible non-profit clinic corporations. The Department shall then
apply these percentages to the available funds in the Sub-Account to
compute a preliminary allocation amount for each eligible non-proft
clinic corporation. Final allocation amounts will be created pursuant to
paragraph (6).
(6) Final allocation amounts shall be determined as follows:
(A) If the preliminary allocation for an eligible non-profit clinic
corporation is equal to or less than twenty-five thousand dollars ($25,000),
the allocation for that eligible non-proft corporation shall be twenty-five
thousand dollors ($ 25.000 ).
(B) For all eligible non-proft clinic corporations with preliminary
allocations of more than twenty-five thousand dollars ($25,000),
the Department shall compute each such eligible non-proft clinic
corporation's percentage of the total uninsured patient encounters and
apply the percentage to the remaining funds available to determine the
final allocation amountfor each such eligible non-prortt cUnic corporation,
subject to subparagraph (c).
(C) No eligible non-proft clinic corporation shall receive an
allocation in excess of two percent (2%") of the total monies distributed
to all eligible non-profit clinic corporations in thst year. Allocations that
are subject to the two percent (2%o) limit shqll be reallocated to those
other eligible non-proft clinic corporations receiving allocations under
subparagiaph (B) utilizing the methodology in paragraphs (3) and (4), but
provided that reallocations shall not make anyfnal allocation surpass the
two percent (2%) limit.
(d) The State Department ofHealth Services shall be reimbursedfrom
the Community Clinics (Jninsured Sub-Accountfor the Department's actual
cost of administralion. The total amount available for reimbursement of
the Department's administrative costs shall not exceed one percent (1%)
of the monies credited to the Sub-Accounttduring thefiscal year.
SEC. 8. Nursing Workforce Education Investment
Section 128224.5 is added to the Health and Safety Code, to read:
128224.5. (a) The California Healthcare Workforce Policy
Commission shall oversee the plan for and distribution of funds in the
Nuriing lYorkforce Education Sub-Account created by paragraph (6) of
subdivision (c) ofSection 30132.3 ofthe Revenue.and Taxation Code. A
state nursing contract program with accredited schools and programs that
educate students seeking degrees in nursing, including associate degree
programs ('ADN"), bachelor of science degree programs ("BSN"),
master's degree programs ("MSN"), programs for Advanced Practice
Registered Nurses, and higher graduate nursing education programs
("DNSc/Ph.D."), shall be developed to create, expand and improve
progrqms to educate students to become practicing registered nurses,
nurses with advanced clinical skills, nurse managers, and faculty for
schools of nursing. Priority shall be given to programs that increase the
number and types ofnursing student lraduates and educators most likely
to meet the state's most pressing needs for registered nurses.
(b) The California Healthcare l(orkforce Policy Commission shall
recommend to the director the Calfornia Board of Registered Nursing
( " BRN " ) - approved registered nurse education programs and California
graduate nursing education programs (MSN, DNSc/Ph.D.) that shall
.be funded under subdivision (a). For purposes of this section the term
'Advanced Practice Registered Nurse Programs" refers to programs that
educate nurses with advanced clinical skills, including, but not limited to,
nurse anesthetists, clinical nurse specialists, nurse practitio.ners,.nurse
midwives, and pub,lic health nurses.
Section 128225.5 is added to the Health and Safety Code, to read:
128225.5. The director shall utilize lhe funds appropriated to
implement the recommendations of the Califurnia Healthcare l(orkforce
Policy Commission pursuant to Section 128224.5; and to reimburse the
ffice and the commissionfor all reasonable, actual, direct administrative
costs incurred to implement this Section, not to exceed one percent (1t%) of
the amount deposited into the.Nursing Iilorkforce Education Sub-Account
for the same period. The director shall utilize all funds appropriated to the
extent reasonably possible. To the extent any funds appropriated are not
utilized, or after bging committed are returned or remain unspent for any
reason, suchfinds shall remain in or shal! be re-deposited into the Nursing
Workforce Education Sub-Accountfor appropriation and usefor the same
purpose as provided in paragraphs (6)(A) or (6)(8) ofsubdivision (c) of
Section 30132.3 ofthe Revenue and Taxation Code, as appropriate.
SEC. 9. Emergency and Trauma Hospital Services
Chapter4.5 (commencing with Section 1797.300) is added to Division
2,5 ofthe Health and Safety Code, to read:
Cneprnn 4.5. Hosprrn Eumcc^rcv Sznwcas
Article I. The Emergency and Trauma Hospital Services
Sub-Account
1797.300. To support the public's need for hospital emergency
services, the department shall administerfunds made available to hospitals
- for such services as provided by this Chapter.
1797. 30 I. (a) The department shall calculate each eligible hospital's
funding percentqge to be used for the next calendar year based upon the
information submitted by such hospital pursuant to Section 1797.302 and
notify each eligible hospital of its proposed funding percentage no ltter
than June 15 of each calendar year.
(b) The depaltment shall receive and review the accuracy and
completeness of information submitted by eligible hospitals pursuant to
Section 1797.302. The department shall devblop a standard form to be
utilized for reporting such information by eligible hospitals, but shall
accept information from eligible hospitals that is not reported on such
stdndard form. The depaltment shall allow hospitals to report such
information elbctronically no later than April 30, 2008.
(c) The department shall notifi each hospital submitting the
information specffied under subdivision (a) of Section 1797.302 in writing
through a communication delivered by no later than April 30 each year
confirming the information it has from such hospital and of any apparent
discrepancies in the accuracy, completeness, or legibility of information
submitted by such hospital pursuant to Section 1797.302. Unless such
written notice is timely delivered to an eligible hospital, the information it
reports pursuant to Section 1797.302 shall be deemed to be complete and
accurate, but shall be subject to audit under subdivision ffi:
(d) A hospital thai receives notice from the department that the
information it reported was not accurate, complete, or legible shall have
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j0 days from the date the notice is received to provide the department with
correct, complete and legible information. Such corected or supplemental
information shall be used by the department to make the calculation
required by subdivision (a), but shall be subject to audit under subdivision
(fl. A h.ospital that does not provide sfficient legible information to
establish that it qualifies as an eligible hospital or to allow the department
to make the calculation required under subdivision (a) shall not be an
eligible hospital.
(e) The department may enter into a.n agreeruent with the Offce
of Statewide Health Planning and Development or another state agency
ot private pafty to assist it in analyzin$ information reported by eligible
hospitals. rind making the hospital funding allocation computations as
provided under this Chapter.
(fl To ensure that the Junds received by hospitals are utilized for
the purpose specifed in this Article, the depqrtment shall audit the use
by eligible hospitals of any funds received pursuant to Section 1797.304,
and th4 accuracy of data on emergency department patient encounters
and other information any hospital reports under this Article, as follows:
the department shall randomly select twenty percent (20%o) ofall eligible
hospitals each year for audit of the information they submit. Additionalty,
the department may conduct afeld audit ofthe use o/funds or information
submitted by any hospital. Ifthe department determines upon audit that
any funds received were improperly used, or that inaccurate data were
reported by the eligible hospital resulted in an allocation of excess funds
to the eligible hospital, the department shall recover qny excess amounts
allocated to, or any funds improperly used by, the eligible hospital. The
depdrtment may impose afine ofnot more than twenty-fve percent (25%o)
ofany funds received by the eligible hospital that were improperly used, or
the department may impose afne of not more than two times any amounts
improperly used or received by the eligible hospital ditfnds such amounts
were the result of gross negligence or intentional misconduct in reporting
data or improperly using allocated funds under this Article on the part
of the hospital. Any fnes imposed by the department shall be stayed if
appealed by the hospital pursuant to subdivision (g) until judgment by a
court offinaljurisdiction. In no eveni shall a hospital be subject to multiple
penalties for both improperly using and receiving the same funds.
@0 e hcensed hospital owner shall have the right to appeal
the imposition of any fine by the department, or a determination by the
department that its hospital is not an eligible hospital, for any reason,
or an alleged computational or typographical error by the department
resulting in an incotect allocation offunds to itp hospital under Section
1797.304. A hospitcl shall not be entitled to be reclassifed as an eligible
hospital or to have an increase infunds received under this Chapter based
upon subsequent conections to its own fnal reporting of incorrect data
used to determine fundiig allocations under this Article.
(2) Any such appeal shall be heard before an administrative law
judge employed by the Office of Administrative Hearings. The hearing
shall be held in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Titte 2 of the Government Code. The
decision of the administrative law judge sl4all be in writing; shalt include
findings offact and conclusions oflaw; shall befnal; and shall be subject
to appeal as provided by Section 11523 of the Government Code. The
decision ofthe adntinistt ative law judge shall be made within 60 days after
the conclusion ofthe hearing and shall be effective uponfling and service
upon the petitioner.
(j) The appeal rights of hospitals under this subdivision (g) shall
not be interpreted to preclude any other legal or equitablb relief that may
be available.
(h) Anyfnes or other recoveries collected by the department shall
be deposited in the Emergency and Trauma Hospital Services Sub-
Account within the Tobacco Tax Fundfor allocation to eligible hospitals in
accordance with the provisions of Section 1797.304. Such funds shall not
be usedfor administrative costs, and shall be supplemental io, and shall
not supplant, any other funds available to be allocated from such Sub-
Accounl to eligible hospitals.
(i) In the event it is determined, upon afinal adjuQicatory decision that
is no longer subject to appeal, that a hospital haS been incorrectly determined
to not qualify as an eligible hospital, or was allocated an amount less than
the amount to which it is entitled under Section 1797.304, the department
shall, from the next allocation offunds to hospitals under Section 1797.304,
allocate to such hospital the additional amount to which it is entitled, and
reduce the allocation to all other eligible hospitals pro rate.
1797.302. (a) Each hospital seeking designation as an eligible
hospital shall submit the following information to the department by no
later than February 15 of each year, commdncing the frst February 15
following the operative date ofthis Act:
(l ) The number of emergency department encounters that took place
in the hospital's emergency depdrtment during the preceding calendar
year;
(2) The total amount of charity care costs of the hospital for the
preceding ca Ie nd a r year ;
(3) The total amount of bad-debt costs of the hospital for the
preceding calendar year ;
(4) The total amount of county indigent prog:ram effort costs of the
hospital for the preceding calendar year;
(5) If requested, a photocopy of the hospital's operating license from
the State Department of Health Services or equivalent documentation
establishing that it operates a licensed emergency department;
(6) A declaration of commitment to provide emergency services and
training as required by subdivision (a) ofSection 1797.303.
(b) Both pediatric and adult patients shall be included in the data
submitted. The accuracy ofthe data shall be attested to in writing by an
authbrized senior hospital official. No other data or information Shall
be required by the department to be reported by eligible hospitals .for
purposes of this Chapter.
(c) Each hospital seeking status as an eligible hospital under
this Chapler that receives a preponderance of its revenue from a single
associated comprehensive group practice prepayment health care service
plan shall rdport information required by this sectionfor all patients, and
not just for patients who are not enrolled in an associated health care
service plan.
, 1797.303. (a) An eligible hospital shall, throughout each calendar
quarter in which it receives an allocation pursuant to Section 1797.304:
(l) Maintain an operational emergency department available within
its capabilities and licensure to provide emergency care and treatment, as
required by law, to any pediatric or adult member of the public who hds an
emergency medical condition.
(2) Do all of the following:
(A) Participate in a minimum of two disaster-training exercises
annually;
(B) Provide training and information as appropriate to the hospital's
meclical stffi nurses, technicians and administratiye personnel regarding
the identification, managemen6 and reporting of emergency medical
conditions and communicable diseases, as well as triage procedures in
cases of mass casualties ;
(C) Collaborate with state and local emergency medical services.
agencies and public health authorities in establishing communications
procedures in preparation for and during a disaster situation; and
(D) Establish and maintain an emergdncy and disaster management
plan. This plan shall include response prepalations to care for victims of
terrorist attacks and other disasters. The plan shall be made available by
the hospital for public inspection.
(b) h is the p.olicy of the state to encourdge hospitals to work
cooperatively to develop regional plans for assuring maximum availability
ofemergency services to all patients, and to share equitably in the provision
ofemergency services to uninsured and low income underinsured patients
in achieving such maximum availability ofemergency services.
(1) Each hospital receivingfunds under this Chapter that operates
a basic or comprehensive licensed emergency department mdy participate
in the development of a regional or other local plan for equitably sharing
responsibility for providing emergency services to uninsured and low-
income underinsured patients ativing at the hospital vid ambulance. Any
such plpn may be developed under the auspices of a hospital association
or thlough other cooperative arrangements, and shall be submitted to
the county or other local emergency services authority for approval and
continuing oversight of implementation.
(2) Each hospital receiving funds under this Chapter may work'
cooperatively with one or more other hospitals to develop a plan for
providing maximum coverage ofspecialty medical services. Any such plan
may include such items as coordinated coverage of particular medical
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speciahy services; alternate coverage of particular medical specialty
services; andjoint programs for the payment ofcoveiagefees to physician
specialists for providing on-call coveirage of emergency services. Any
iuch plan shall be submitted to and apprpved by the county or other local'
emergency services authority,for approval and continuing oversight of
implementalion.
(3) To the extent that any hospital or hospitals work cooperatively in
developing and implementing the plans for providing emergency services
described in this Section, the people intend lhat iuch hospital or hospitals
shall incur no liability under federal or state antitrust or other anti-
competition laws prohibiting combinations in restraint oftrade, including,
without limitation, the provisions of Chapter 2 (commencing with Section
16700) ofPart 2 ofDivision 7 ofthe Business and Professions Code.
(c) Any funds received by an eligible hospital under this Article shall
not be used in the determination-ofuncompensated.costsfor the purpose of
the limitation on payment adjustments desclibed in Section 1923(g) ofthe
Social Security Act and any provision ofstate law which incorporates such
limitation, to the extent consistent with federal law.
1797.i04, (a) Funds deposited in the Emergency'and Trauma
Hospital Selrvices Sub4ecount, together with all interest and investment
incone earned thgreon, shall be continuously appropriated without
regai'd to fiscal yedrs to and administered by the state Department of
Health Services. The department shall allocate thefunds solely to eligible
hospitals as provided by this Article.
(b) Quarterly, commencing June 30 following the operative date.
of this Chapter, the department shall allocate to each eligible hospital
a percentage of the balance of the Hospital Sub'Account equal to such
hospital's funding percentage, as determined by the department pursuqnt
to Section lT9T.30l, except as follows."'
. (1) The annual aggregate allocation to all hospitals that receive a
preponderance of ihi.eir revenue from the same associated comprehensive
group practice prepayment health care service plan. shall not exceed
forty million dollars (540,000,000.00) during any calendar year, and the
department shall reduce the quarterly allocation to each such hospital pro
rata, if and to the extent necessary, to contain the aggregate allocqtion to
all such hospitals within any calendar year to a maximum of forty million
doltars ($40,000,000.00). The maxitnum annual aggregate allocation shall
be applied by.the department in increments of no more than ten million
dollarit ($10,000,000.00) to each ofthefrst three quarterly distributions
^of each calendar year, but no specifc portion of the limit on maxiryum
annual aggregate distributions provided by this subsection shrill apply to
.other quarterly distributions to such hospitals.
(2) The maximum dggregate ahnual qllocation of forty million
dotlars ($40,000,000.00) to all hospitals that receive a preponderance
of their.revenue from the same associated comprehensive group practiee
prepayment health care service plan setforth in paragraph (1) above shall
'be adjusted upward or downward ainually, together with corresponding
changes in any quarterly limits, commencing on January l' 2009' by the
same percentage increase or decrease in the dggregate amount deposited
in the.Hospital Sub-Accountfor the immediate prior calendar year against
the aggregate amount deposited in the'Hospital Sub-Account during
the 2007 calendar year. Any adiustme4t that increases or decreases the
maximum aggregate annual allocation to such hospitals shall be applied
only to the then cuftent calendar year.
(3) After making the adjusiment to the maximum,aggregate annual
ailocation to hospitals that receive a preponderance oftheir revenue from
the same associated comprehensive group practice prepayment health
care service plan provided by paragraph (2) above, the.department shall
further adjust lugh maxitnum aggregate annual allocation by increasing
or decreasingit by a percentagefactor equal to the percentage increase or
decrease in the aggregate funding percentage by all hospitals receiving a
preponderancebf their revenue from ihe same associated comprehensive
group practice prepayment health care service plan in the 2007 calendar
year against the aggregate funding percentage of all hospitals ass.ociated
with the same health care service plan for the most recent calendar year.
(4) After making the adiustments to the allocation of funds as
provided by paragraphs (1) through (3) above, the department shall
. allocate any funds remaining in the Hospital Sub-Account to hospitals that
do not receive a preponderance oftheir revenue from the same associated
comprehensive group practice prepayment health care service plan pro
rata based upon their respectivefunding percentages.
(c) Prior to each allocation under subdivision (b), the actual costs of
the department (including qny eosfi to the department resulting from the
charges under Section I 1527 of the Government .Code) for administering
the provisions of this Chapter shall be reimbursed from the Hospital Sub'
Account.'The aggregate funds withdrawn for all administrative costs
underthis subdivision shall not exceedpne halfofone percent (0,5%) of
the titol amounts deposited in the Hospital Sub'Account (not including
any fines collected under subdivision (h) of Section 1797.301) during the
prior quarter.
(d) An eligible hospital shall use t\e funds received under this
Section only to further the prbvision of emergency services by such means
as pay:mentfor the unreimbursed cost ofproviding emelgency services.and
irytproving or expanding emergency services,facilities, or equipment. Such
.funds may not be used to pay for more than the hospital's unreimbursed
costs ofproviding emergency services, and nofunds may be used to pay the
hospital for providing emergency services where it receives payment for
providing such services and has agreed to accept such payment as payment
infutl. Nofunds may be usedfor the compensation ofhospital management
executives, exceptfor personnel who workfull time in hospital emergency
departments. Nofunds may be usedfor equipment or capitgl improvements
not directly related to the improvement ofhoSpital emergency departtnent
facilities or critical care units. An eligible hospital owned by a public entity
may use funds it receives under this Chapter to secure federal matching
junds under the Medi-Cal program; or any other federal or state health
program that includeg coverage of emergency services and reduces the
burden ofproviding uncompensated emergency services by hospitals and
physicians.
(e) (1) A hospital may not utilize funds received under this Article to
supplement payments physicians receive for services to patients enrolled
in the Medicare or Medi-Cal progrdms, but may use suchfunds to provide
payments to physiciansfor on-call coverage'ofemergency services to all
patients, including those enrolled in the Medicare or Medi'Cal progtams,
as provided by subparagraph (2) below. Such paymenti to physicians for
.on-call coverage shall not be considered payrnents for services.
(2) A hospilal, in irs sole discretion, may utilize funds it receives
under this Chapter to itrovide compensation to a physician that is fa.ir and
reasonable .foi providing on-call ioverage of emergency services 'only if
the governing board ofthe hospital makes thefollowingfindings:
(A) The amount 07 rate of payment is rdasonable and necessary for
the hospital to maintain coverage ofmedical services to carefor patients
entering the hospilal through the emergency department, or patients who
have emergent cqnditions requiring the services of on-call physicians
while in the hospital: and
(B) The method and amount of compen'sation to any physician.or
physiciens is in compliance wiih applicable law.
(3) The governing board of a hospital, in its sole discretion, prior
to entering into an agreement to compensate one or more physicians for
on-call coverage of emergency services may obtain the opinion of an
independent financial analyst with expertise in the hospital industry that
the p.roposed amount or rate of payment to compensate physicians under
the proposed agreement is fair and reasonable under the circumstances.
If a hispital governing board.elects to obtain such an'opinion, it shall
notifi the department inwriting, and the department shall, within ten days
of iiceivlng the hospital's written request, provide the hospital with the
names ofthree independentfnancial analysts (which mqy be individuals
or firms) from a list of such independent financial analysts qualifed to
issue such an opinion it establishes and maintains. The hospital shall
provide the list of the independent fnancial analysts it receives from
7he department to the Executive Committee of the hospital's organized
medieal staff and the medical staff Executive Committee shall have
fifteen (15) days to review the list and make a peremptory challenge of
one of the independent financial analysts by notifiing the hospital's
governing b"oard in writing. The hospital governing board may make a
pelemptory challenge to one of the independent fnancial analysts. If two
of the three independent financial analysts are subiect b A peremptory
challenge, the hospital governing board may retain only the renaining
independent financial analyst. If more than one independent financial
analyst is not subject to 4 peremptory challenge, the hospital shall so
notifu the departrnent, and the department shall select one of the remaining
independent fhancial analysts by lottery. In such evenl, the' hospital may
retain only the independentfnancial analyst selected by lottery, unless the
156 I Tcxt of Proposed Laws* * *
(PROPOSITION 86 CONTINUED)* * * TEXT OF PROPOSED LAWS
governing boaid ofthe hospital and the medical staffExecutive Committee
agree upon the retention by the hospital of one of the other independent
fnancial analysts on the list of the three fnancial analysts provided to
the hospital by the department. The selected independentfnancial analyst
may charge the hospital a reasonable fee to issue a written opinion to
the hospital governing board as to whether the proposed amount or rate
ofpeyment is fair and reasonable under the circumstances. In the event
such independent financial analyst opines that the proposed amount or
rate of payment is not fair and reasonable, upon request, the independent
financial analyst may describe a range ofpayment amounts and rates that
are fair and reasonable, under the circumstances, for the hospital to pay
various types of physicians for on-call coverage. The hospital mdy not
pay qn amount or rate for on-call toverage of emergency services by a
physician that is higher than any amount or rate determined to be fair
and reasonable by the opinion ofsuch independentfinancial analyst, nor
shall the hospital pay less than its highest.written offer to the physician or
physicians that is fair and reasonable.
(4) A hospital may compensate a physician for providing on-call
emergency services coverage only through a written agreement.
(5) The requirements of this subdivision relate only to the use of
'funds eligible hospitals received under this Article, and do not apply to the
use of other funds by hospitals to pay for on-call coverage of emergency
services by physicians.
(fl Nothing in this Chapter shall be construed to prevent a hospital,
in its sole discretion, from providing reasonable compensation to a
physician for providing emergency physician stffing for the emergency
department in a manner consistent wilh the Medical Practice Act,
Chapter 5 (commencing with Section 2000) of Division 2 of the Business
and Professions Codo.
(g) The hospital governing board, in consultation with the hospital's
medical stffi shall ensure the appropriate coverage of medical services
within.its capabilities to meet the emergency selvices needs of its patients
as required by law. '
1797.305. Thefollowing defnitions shall apply to terms utilized in
this Chapter:
(a) "Bad-debt cost" meons the aggregate o*orm o1 o"":ounts and
notes receivable accounted for during a calendar year by an eligible
hospital as credit losses, using any method generally acceptei for
estimating such amounts on the date this Act became effective, based on
patients' unwillingiess to pay, and multiplied by the eligible hospital's
cost-to-cho rges rat io.
(b1 "County indigent program effort cost" means the amount of
care during a calendar year by an eligible hospital, expressed in dollars
and based upon the hospital's full established rates, provided to indigent
patients for whom a county is responsible, whether the hospital is a county
hospital or a non-county hospital providing services to indigent patients
under arrangements with a county, multiplied by the eligible hospital's
cost-to- charges ra t i o.
(c) " Charity care" means that port ion of care provided by a hospital
to a patient for which a third party payer is not responsible and the
patient is unable to pay, andfor which the hospital has no expectation of
payment.
(d) "Charity-care cost" meons amounts octually written off, using
any method generally acceptedfor determining such amounts on the date
this Act became effective, by an eligible hospital during a calendar yearfor
that portion of care provided to a iatient for whom a third party peyer is
not responsible and the patient is unable to pay; multiplied by the hospital's
cos t- I o - c har ges ra t io.
(e) "Charity care policy" means a policy adopted by the hospital
establishing eligibility criteria for charity care services provided by the
hospital. ,
fl "Cost-to-charges ratio" means a ratio determined by dividing,
an eligible hospital's operating expenses less other operating revenue by
gross patient revenue for its most recent reporting period.
(g) "Operating expenses" means the total expenses incurred for
providing patient care by the hospital. Operating expenses include (without
limitation) salaries andwages, employee benefts, professionalfees, supplies,
purchased services, dbpreciation, leases, interest and other expenses.
(h) "Other operating revenue" means revenue generated by health
care operations from non-patient care services to pctiients qnd others.
(i) "Gross patient revenue" means the total charges at the hospital's
full established ratesfor the provision ofpatient care services and includes
charges related to hospital-based physician profgssional services.
(j) "Eligible hospital" or "hospital" means a hospital licensed
to a public or private entity or person uniler subdivision (a) of Section
1250 of the Health and Safety Code, in.cluding without limitation, any
hospital licensed to any county, city, hospital district, or the Regents of
the University ofCalifornia (but not including any hospital licensed to a
department of the State of Califurnia, or to thefederal government) which
either operates an emergency department or is a children's hospital as
defined in Section 10727 ofthe Welfare and Institutions Code.
(k) "Emergency department encountel" or "emergency department
visit" means a face-to-face contact between a patient and the provider
who has pi,intary responsibility for assessing and treating the pdtient in
an emergency department dnd exercises independent judgment in the care
of.the patient. An emergency department encounter or visit is counted
for each patient cif the emergency department, regardless ofwhether the
patient is admitted as an inpatient or tieated and released as an outpatient.
An emergency department encounter or visit shall not be counted where
the patient received triage services only.
(l) "Emergency services" or "hospital emergency services" means
all services provided to patients in a hospital emergency department and
all otltir patient services related to treatment of an emeigent medtcal
condition in any department or unit of a hospital, including, without
limitation, any procedures necessary to avoid loss oflife, serious disability,
or severe pain until the patient has been stabilized and transferred to
another heallh Iacility or discharged.
(m) "Office" meahs the Offce of Statewide Health Planning and
Development.
(n) "Department" means the state Deparfment ofHealth Services.
(o) "Funding p,ercentage" means rhe sun of (l) an eligible hospital's
percentage ofhospital emergency care (as defned in subdivision (s) below)
muhiplied by'a factor of .50, added to (2) such hospital's percentage of
effort (as defned in subdivision (p) below) multiplied by afactor of.50, the
sum to be expressed as a percentage.
(p) "Hospital Sub-Accounti' or "Emergency and Trauma Hospital
Services Sub-Account" means the Emergency end Tiauma Hospital
Services Sub-Accbunt of the Tobacco Tqx Fund established pursua-nt to
paragraph (7) of subdivision (c) of Section 30132.3 of the Revenue and
Taxation Code.
. (q) "Tobacco Tax Fund" means the Tobacco Tax of2006 Trust Fund
established pursuant to Section 30132 ofthe Revenue and Taxation Code.
(r) "Percentage of effort" means the sum of an eligible hospital's
total amount ofcharity care cost plus that hospital's total amount ofbad-
debt cost plus that hospital's county indigent plogram effort cost, as a
percentage ofthe sum ofthe total amount ofcharity care cost plus the total
amount of bad-debt cost plus the total county indigent program effort aost
reported in final form to the department by atl eligible hospitals for the
same calendar year.
(s) "Percentatge of hospitat emergency care" means an eligible
hospital's total emergency department encounters for the most recent
calendar year for which such data has been reported to the deparlment
in f.nal form, as a percentage of all emgrgency department encounters
reported infinal form by all eligible hospitals for the same calendar year.
In the case of a children's hospital that does not operate an emergency
department dnd provides emergency treatment to a patient under twenty-
one years of age under orrangemenls with an emergency department
of a hospital that is: (1) litcated veithin 1,000 yards of the children's
hospital; and (2) is either (A) under common ownership or control with
the children's hospital, or (B) has contracted with the children's hospital
to provide emergency services to its patients under twenty-one years of
age, the children's hospital providing emergency services to such patient.
shall receive credit for the emergency department encounter, and not the
hospital operating the emergency department.
(t) "Unreimbursed cost ofproviding emergency service" means the'
difference between the hospital's cost ofproviding emergency services,
determined by multiplying its gross patient charges for providing such
services by its cost-to-charges ratio, and the amount it actually receives
for providing such services, where the hospital has not agreed to accept
the payment it receives as payment in full.
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TEXT OF PROPOSED IAWS * * *
(u) "Physician" meens a phyiician and surgeon licensed under
the Medical Practice Act, Chapter 5 (commencing with Section 2000) of
Division 2 ofthe Business and Professions Code.
1797.306. A hospital receiving funds under this Chapter shall
maintain a written record ofits use of all suchfunds, which shall be available
to the depqrtment upon request, and available for inspection upon written
request by the public. A hospital shall return to the department anyfunds it
receives under this Chapter that it does not use for the purposes specifed
within one year of receipt or, in the case of a capital proiect, are no.t
committed within two years ofreceipt by the governing boardfor a specifb
use. Any unusedfunds returned to the department shall be deposited in the
Emergency and Trauma Hospital Services Sub-Accountwithin the Tobacco
Tax of 2006 irust Fundfor allocation to eligible hospitals in accordance
with the provisions ofSection 1797.304.
1797.307. The department may promulgate and adopt regulations
to implement, intelpret and make specifc the provisions of this Article
pursuant to the provisions ofthe Adminisfuative Procedures Act as setforth
inChapter 3.5 (commencingwith Section 11340) of Part I of Division 3 of
Title 2 ofthe Government Code. The department shall have no authority
to promulgate quasi-legislative rules, or to adopt any rule, guideline,
criterion, manual, order, standard, policy, procedule or interpretation
that is inconsistent with the provisions of this Chapter. This Section shall
not be interpre.ted to allow the department to adopt'regulations (as defned
by Section 11342.600 ofthe Government Code) in contavention ofSection
11340.5 ofthe Government Code.
1797.305. No hospital may receivefunds under this Chapter unless
it complies with the provisions of Article 2 (commencing with Section
1797.309), relating to financial assistance to certain low-income patients'
Article 2. Hospital Charity Care and Financial Assistance Policies
17g7.30g. For purposes of this Article the following defnitions
shall apply:
(a) 'Allocation" means an allocation offunds received by a hospital
under Article 1 (commencingwith Section 1797.300) ofthis Chapter.
(b) "Discounted payment" means the payment amount a,fter
application of a discount from its full charges for services offered by a
hospital to patients who have no or inadequate insurqnce and qualify
under the hospital's. discount payment policy.
(c) "Discount payment policy" means a policy adopted by the
hospital establishing eligibility criteria for receiving services for a
discounted payment.
(d) "Federal poverty level " means tlte most recent poverty guidelines
periodically adopted by the federal Department of Health and Human
Services for determining fnancial eligibility for participation in various
programs based uponfamily size as applicable to California.
(e) "Hospital" means an "eligible hospital," as defned by
su bdiv is ion (j ) of Sect ion I 797. 3 05.
1797.309,5. , Each hospital shall comply with the provisions of this
Article throughout each calendar year in which it receives an allocation.
The requirements of this Article are applicable only to hospitals receiving
an allocation, and shall not be construed to limit the ability of the
Legislature to enact charity care or discount payment policies applicable
to all acute hospitals as a condition of licensure or participation in lny
other state program.
1797.310. (a) Each hospital shall maintain an understandable,
written charity care policy and discount payment policy for low-income
patients with no or inadequate insurance.
(b) Each hospital's charity care policy and discount payment
policy shall clearly state eligibility criteria based upon the income and-monetary
assets of the patient, or consistent with the application of the
fbderal poverty level, the patient's family. In determining such eligibility,
a hospital may consider income and monetary assets of the patient, or the
family ofthe patient. For purposes ofsuch determination, monetary dssets
shall not include retirement or deferred-compensation plans qualifed
under the Internal Revenue Code, or non-qualified deferred compensation
plans. Furthermore, the frst ten thousand dollars (510,000) of a patient's
or a patient's family's monetary assets shall not be counted in determining
eligibility; nor shall ffty percen't (50o/o) of such assets over the frst ten' thousand dollars be counted in determining eligibilily. The policy shall
also state the process used by the hospital to determine whether a patient
is eligible for charity care or discounted payment.
(c) Patients who are at or below three hundred'ffty percent (350%o)
ofthefederal poverty level shall be eligible to applyfor participation under
each hospital's charity care policy or discount payment policy. However,
rural hospitals, as defined by Section 124840, may establish eligibility
levels for fnancial assistance and charity care at lbss than three hundred
fifty percent (350%) ofthefederal poverty level as appropriate to maintain
their fnancial and operational integrity.
(d) Absent any regulatory prohibition, each hospital. shall limit
expected payment for services it provides to any patient at or below three
hundred ffty percent (350%o) of the.federal poverty level eligible under
its discount payment policy to the greater of the amount of payment the
hospital would receive for providing such services from Medicare or any
other government-sponsored health program of health benefts in which
the hbspital participates. If the hospital provides a service for which there
is no established pdymenl by Medicare or any other government-sponsored
program of health benefts in which the hospital participates, the hospital
shall eitablish an appropriate discounted payment.
(e) A hospitat shall use its best efforts to ensire all fnancial
assistance policies are applied consistently.
(fl Any patient, or the pdtient's legal representative, seeking either
charity care or discounted payment shall provide the hospital with
information concerning health benefts coverage, financial status dnd
other information that is reasonable and necessaryfor the hospital to make
a determination regarding the patient's status lelztive to the hospital's
charity care policy, discount payment policy, or eligibilityfor government-
sponsored programs. For purposes of proving income, a patienfor the
patient's legal representative, must provide verifcation of the patient's or
the patient's family's income. Reasonable and necessary information on
monetary assets may include account numbers for all monetary assets, but
shall not include stdtements on retirement or defeted compensation plans
quatified under the Internal Revenue Code, or non-qualified deferred
compensation plans. Hospit.als may require.waivers or releases from the
patient, or the patient's family, authorizing the hospital to obtain account
informationfrom thefnancial or commercial institutions, or other entities
that hold or maintain the monetary assels to verify their value.
(g) Eligibility for charity care and discounted payments may be
determined at any time the hospital is in receipt of all the idormation
needed to determine the patient's eligibility under its applicable policies.
(h) In determining a patient's eligibility for financial assistance, a
hospital shall assist the patient in determining ifhe or she is eligiblefor
gov ernment-s pons ored p rograms.
1797.311. (a) Each hospital shall post notices regarding the
availability ofits discount payment policy and charity care policy' These
notices shall be posted in visible locations throughout the hospital,
including, but not limited to, patignt admissions and registration, the
billing ffice, the emergency department and other outpatient settings.
(b) Every posted notice regardingfinancial assistance policies shall
contain brief instructions on how to apply for charity care or a discounted
.payment. Each notice shall include a contact telephone number that a
patient orfamily member can call to obtqin more information.
(c) A hospital shall train appropriate staff members about the
hospital's discount payment policy. Training shall be provided to all staff
members who directly interact with patients regarding their hospital bills.
(d) Each hospital shall make its charity care and discount payment
policies available to appropriate community health and human services
agencies and other organizations that assist low-income patients.
1797.312. (a) Each hospital shall have a written policy about.when
and under whose authority patient debt is advanced for collection, and
shall use its best efforts to ensure that patient accounts are processed
fairly a nd consis le ntly.
(b) Each hospital shall establish a written policy defning standards
and practices for the collection of debt, and shall obtain a wriiten
agreement from any agency that collects hospital receivables that it will
adhere to the hospital's standards aud scope ofpractices. In determining
the amount of a debt a hospital may seek to recover from patients eligible .
under its chdrity care policy or cliscount payment policy, the'hospital may
consider only income and monetary assets as limited by subdivision (b) of
Section 1797.310
158 I Text of Proposed Laws* * *
(
l-'
(
* * * TEXT OF PROPOSED LAWS(PROPOSTTION 86 CONTINUED)
(c) At time of billing each hospital shall provide to all low-income.
and uninsured patients, as the same are defned in policies adopted by the
hospital regarding eligibilityfor charity care and discounted payment, the
same information concerning services and charges provided to all other
patients who rAceive care at the hospital.
(d) When sending a bill to a patient, each hospital shall include:
(1) a statement thdt indicates that if the patient meets certain low-income
requirements the patien! may be etigibte for a government-sponsored
' program or for financial assistance from the hospital ; and (2 ) a s tatement,
that provides ihe patient vrith the name and ielephone number ofa hospitat
employee or fficefromwhom orwhich the patieht may obtain informdtion
about the hospital's financial assistance policies for patients and how to
apply fo r suc h ass is t an c e.
(e) For patients who have a completed applic.ation pendingfor either
government-sponsored coverage orfor eligibility under the hospital's own
charity care or discount payment polibies, a hospital shall not knowingly
send that paiibnt's bill to a iollection agency prior to 120 days from time
of initial billing, and withoutfirs't having rnade more than one dttempt to
collect fhe bill, or while the completed application is being processed by a,
governmeital agency or the hospital.
(J) If a patient qualifies for eligibility urider the hospital's charity
care or discount payment policy and is attempting in good faith to. settle
an outstanding bill with the hospital by negotiating a reasonable payment
plan or by making regular partial payments of a reasonable amount,
the hospital shall not send the unpaid bill to any colleetion egency if the
hospital knows that doing so may negatively impact d patient's credit.
- k) Thb hospital or'collection.agency operating on behalf of the
hospital shall not, in dealing with patients eligible under ihe hospital's
charity care or discount payment policies, use wage garnishments or liens
on primary residences as a means of collecting unpaid hospital bilts. This
requirement does not preclude hospitals from pursuing reimbursement
from third-party liability settlements or tortfeasors or other legally
responsible parties.
(n1 ,lny extended payment plans offered by a hospital to assist
patients eligible under the hospital's charity care br discount paymeit
policy, or any other policy adopted by the hospttalfor dssisting lo\r-income
patients with no or inadequate insurance in settling past due outstanding
hospital bills, shall be interest free.
1797.313; (a) Notwithstanding any other provision of law, the
amounts paid by parties for services resulting from reduced or waived
charges under a hospital's digcount payment or charity care policy shall
not ionstitute the hospital's uniftrm, published, prevailing, or customary
charges, its usual fees to,the general public, or its charges to non-Medi-
Cal purchasers under comparable circumstances, and shall not be used
to calculate a hospital's median non-Medicare or Medi-Cal charges, for
purposes of any payment limit under the federal Medicare program, the
Medi-Cal progrdnr'or any other federal or state-fnanced hqalth care
program.
(b) Nothing in this Arricle shall be cqnstrued to prohibit a hospital
from uniformly imposing charges from its established charge schedule .
or published rates, nor shall this Article preclude the .recognition of a
hospilal's established charge. schedule or publishqd rates for purposes of
applyw any payment limit, interini payment amounL or other payment
calculation based upon a hospital's rates or charges under the Medi-Cal,
Medicare, worker's compensation, or other federal, state or local public
'*i;'{::;:::,ZX{!i;, any requirement or this Articte resutts in a
federal determination thdt a hospital's established charge schedule or
published rates are not the hospital's, customary or prevailing charges for
services, the requirement in question shall be.inoperative. Thi department
' shall seekfederal guidance regarding modification to the requirement in
question. All other requirements in this Article shall remain operative.
SEC. 10. Preservation ofExisting Funding
. Section iOgSO.Z is added to Article 3 of Chapter 5 of part 4.2 of
Division 9 of the Welfare and Institutions Code, to read:
16950.2. (a) An amount, equal to the amount appropriated and
allocdted pursuant to Section 39.1 ofChapter 80 ofthe Statutes of2005,
twenty-four million eight hundred thre.e thousand dollars ($24,803,000),
lshall be transferred and allocated pursuant to subdivis ion (b) from accounts
' within the Cigarette and Tobacco Products.Surtax Fund (commencing with
Section 30122 ofthe Revenue and Taxation Code) as follows:
(1) Twenty million two hundred twenty-seven thousand dollars
($20,227,000) from the Hospital Services Account.
(2) Four million five hundred seventy-six thousand dollars
($a,576,000) from the Physician Services Account.
Q) fhe funds specified in subdivision (a) shall be allocated
proport io n ately as fo I I ows :
(l) Twenty-two million three hundred twenty-four thousand dollars
($22,324,000) shall be administered and allocatedfor distribution through
the California Healthcare for Indigents Program. (CHIP), Chapter S
(commencing with Section 16940) of Part 4.7 of Diiision 9 of the Welfare
and Instilutions Code.
Q) fwo million four hundred sevAnry-nine thousahd dollars
($2,479,000) shall be administered and allacated through the Riral Health
Services Program, Chapter 4 (commencingwith Section.l6930) ofpart 4.7
of Division 9 of the Welfare a;d Institutions Code.
(c) This transfer shall be made on June 30 of the frst fscal year
following adoption ofthis Act, and on June 30 of,eachfiscal year thereafter. '
Funds transferred are continuously appropriated without regard to fiscal
years for the purposes so statedfor each such account.
(d)(1) Funds allocated pilrsuant to this Sectionfrom the physician'Services Account and the Hospital Services Account in the Cigarette and
Tobacco Products Surtqx Fund shall be used only for reimbursement of
physicians fo:7 losses incurred in providing uncompensated emergency
services in general acute-care hbspitizls providing basic, comprehensive,
or standby emergency services, as defined in Section 16953 ofthe Wetfare
and Institutions Code. Funds shall be tra4sferred to the Physician Services
Account in the county Emergency Medical Services Fund established
pursuont to,Sections 16951 and 16952 of the Welfare and Institutions
Code, and shall be paid only to physicians who directly provide emergency
medical services to patients, based on claims submitted or a subsequent
reconciliation of claims. Payments shall be made as provided in Sections
16951 to 16959, inclusive, of the lVelfare anf, Institutions Code, and
payments shall be tnade on an equitable basis, without preference to any
particular physician or group tifphysicians.
(2) If a county has an EMS Fund Advisory Committee that includes
both..emergency physibians and emergency department on-call back
up panel physicians, and if the cominittee unanimously approves, the
administi"ator ofthe EMS Fund may create aspecialfee.schedule and clgims
submission criteria for reimbursement for services rendered to uninsured
tlaumd patients, provided that no more than ffteen percent (15%) of the
tobacco tak revenues allocated to the county's EMS Fund is distributed
through this special fee scftedule, that atl piysicians who render trauma
services are entitled to submit claims for reimbursement under this special
fee schedule, and that no physician's claim may.be reimbursed at [riaterthanfifty percent (50%o) oflosses under this specialfee schedule.
SEC.11. Amendment
(a) Except as hereafter provided, this Act may only be amended
by the electors pursuant to Article II, Section 10(c) of the California
Constitution.
_ (b) Notwithstanding subdivision (a), the Legislature may amend
Sections 8 and 9 of this Act to further its purposes by a statute passed
in each house by rol)-call vote entered in the journalj four-fifths of the
membership concurring.
(c) Notwithstanding subdivisions (a) and (b), the Legislature may
amend Aiticlb 2 (commencing witfr Section 1797.309) of Chapter 4.5 oi
Division 2.5 of the Health and Safety Code to further its purposes by a
statute passed in each house by roll-call vote entered in thejournal, two-
thirds of the membership concurring.
, (d) Notwithstahding subdivisions (a), (b), and (c), the Legislature
may amend Sections 6 and 7 ofthis Act to further its purposes by a statrtte
passed in each house by roll-call vote entered in the journal, a majority of
the membership concurring, except that the Legislature may not amend
subdivision (b) of Section 12693992 of the Insurance Code added by
Section 6 ofthis Act or subdivision (a) or paragraph.(1) of subdivision (c)
of Section 1246 of the Health and Safety Codaadded by Section 7 of thii
Act.
SEC. 12. Statutory References
Unless otherwise stated, all references in this act to existing statutes
* * *Text of Proposed laws I 159
TEXT OF PROPOSED IAWS * * *
E
E
are to statutes as they existed on December 31, 2005.
SEC.13. Severability
Ifany provision ofthis act, or part thereof, is fbr any reason held to be
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
this Act are severable.
SEC. 14. Conflictihg Measures
(a) This measure is intended to be comprehensive. It is the intent
of the People that in the event that this measure and another initiative
measure or measures relating to the same subject shall appear on the same
statewide election ballot, the provisions ofthe other measure or measures
shall be deemed to be in conflict with this measure. In the event that this
measure shall rebeive a greater number ofaffirmative votes, the provisions
ofthis measure shall prevail in theii entirety, and all provisions ofthe other
,
measure or measures shall be null and void.
(b) Ifthis measure is approved by voters but superseded by law by
any other conflicting ballot measure approved by the voters at the same
election, and the conflicting ballot measure is later held invalid' this
measure shall be self-executing and given full force of law
SEC. 15. Conformity with State Constitution
Section 14 is hdded to Article XIII B of the California Constiiution,
to read:
SEC. 14. (a) 'Appropriations subject to lirnitatibn" ofiach entity of
government shall not include appropriations ofrevenue from the Tobacco
lax Act of 2006. No adjustment in the appropriations limit of any entity of
government shall be required pursuant to Sectioi, 3 as a result. of revgnug
being deposited in or appropriatedfrom the Tobacco Tax of2006 Trust Fund.
' (b) The tax created by the Tobacco Tax Act of 2006 and the revenue
derived therefrom shall not be considered General Fund revenues for the
purposes of Section 8 ofArticle XVL
(c) Distribution of moneys in the Tobacco Tax of 2006 Trust Fund
or any of the Accounts or Suh'Accounts created therein, shall be made
pursuant to the Tobacco Tax Act of 2006 notwithstanding ^ny other
provision of this Constitution.
PROPOSITION 87
This.initiative measute is lubmitted to the people of California i4
accordance with the provisions of Section 8 ofArticle II ofthe California
Constitution.
' This initiative measure adds provisions to the California Constitution,
amends, repeals, and adds sections to the Public Resources Code, and adds
sections to-the Revenue and Taxation Code; tierefore, existing provisions
proposed to bs deleted are printed in stri{<e.out-type and new provisions
proposed to be added are printe d in italic type to indicate that they are new.
PROPOSED LAW
THE CLEAN ALTERNATIVE ENERGYACT
SECTION 1. TITLE.
This measure shall be known as the "Clean Alternative Energy Act."
sEC. 2. FINDINGS ANDDEqLARATIONS.
The people ofCalifornia find and declare the following:
A. Californians are facing asevere energy crisis. In 2005, the price
ofoil nearly doubled and the cost ofa gallon ofgas soared to over $3 in
some areas, causing ordinary consumers extreme financial distress while
the big oil companies reported record profits. \
B. Our demand for energy is iising rapidly while our energy supply
shrinks, and we continue to grow more dependent on foreign oil.
C. Our excessive dependence on fossil fuels is imposing economic,
environmental, and spcial costs. High-polluting vehicles like diesel buses
and trucks create significant air pollution that is threatening the health of
our families and childrert with lung diseases and asthma. They can and
should be replaced by clean alternative fuel vehicles.
D. California is the only major oil-producing state in the country that
does not impose a comparable fee on oil produced at its wells. California's
oil producers are enjoying windfall profits at the expense of California
consumers and taxpayers.
E. An assessment paid by California's big oil companies on their
excess profits is a proven wey to reclaim some ofthose revenues without
raising prices for cbnsumers. California is the only one of the nation's top
five oii-producing states without a compdrable asseSsment on oil producers'
These assessments have proven to be impossible for the big oil companies
to "pass along" to consumers in the form of higher gas prices at the pump
beciuse oil pribes are set on the global market without regard to regional
or local costs or assessments.' F.. Consumers shouldbe protected from any attempt atprice gouging
by big oil companies if they try to pass along their assessment costs by
increasing gas prices at the pumP.
G. The proceeds from the assessment on California oil companies'
excess profits should be used to reducb the consumption Of petroleum,
foster the development and use ofclean alternative fuels, clean alternative
fuel vehicles, and renewable energy technologies, and improve energy
effi ciency in California.
H. A clean, environmentally-sound energy economy with greatly
improved energy efficiency is a vital, pro-business goal. Given that
fossil fuel reserves are finite, and that the global appetite for energy is
growing, the only question is when-not if-we will make our economy
significantly more energy efficient and switch to renewable energies and
ge1 more w6rk out pfless energy. But politicians in Washington have failed
to offer visionary leadership for energy independence or to captuJe the
econonlic rewards of early action in this critical technology sector.
I. The United States'dependence on foreign oil is a serious danger
to U.S. irational security, hampers U.S. foreign policy, and is a persistent
threat to the U.S. economy. Because 60% of the petroleum the U.S.
currently uses comes from foreign imports,.and because Califoinia is the
largest consumer ofpetroleum products, we must do our part to address
these national problems.
J. Further delay in beginning the transition to clean. efficient, ahd
renewableenergyputs CaliforniaandtheU'S. atriskforeconomicupheaval,
and cedes the opportunity for new energy technological and indubtrial
leadership to other more pro-active countries, thereby perpetuating our
dependence on foreign energy sources.
K. The transition to a renewable energy economy creates
an opportunity for California to profit economically, socially, and
environmentally. Clean alternative,energy tech4ologies like solar, wind,
and hydrogen, and clean alternative.fuel vehicles like hybrids and.,bio-
fueled cars and trucks are available today and can help reduce our
dependence on oil and gasoline.
L. Calif.ornia's history of technological innovation and
entrepreneurship, international leadership in promoting energy efficiency,
abundance of worldleading academic institutions, :nationdl leadership
in environmental stewardship, and position as one of the United States'
largest energy consumers uniquely qualifies us to lead the way into the
renewable energy era.
SEC.3. PURPOSE AND INTENT.
It is the intent ofthe people ofCalifornia in enacting this measure to:
A. Invest approximately $4 billion in piojects and programs designed
to enhance California's energy independence and to reduce our use of
petroleum, including funding for: research, facility, and training grants
io California's universitibs;-Vocational training'grants io community
colleges;.and buydowns, lbans, loan guarantees, and credits to accelerate
the divel6pment and deployment ofrenewable energy technologies' energy
efficiency teqhnologies, clean alternative fuels, and clean alternative fuel
vehicles;
B. Provide incentives to ordinary Californians to make clean
alternative fuel vehicles and clean alternative fuels as affordable and easy
to obtain as gasoline and diesel fuels and vehicles' Incentive programs like
this have alre4dy succeeded in breaking other countries' oil dependence,
and they can easily work in California today;
C. Create new industries, technologies, and jobs focused on
renewable energy, energy efficiency, clean alteinative fuels, and clean
alternative fuel vehicles, expand our state's wealth, and ensure that any
loan proceeds, royalties, or license fees the state receives as a result ofthe
funding are reinvested in this program;
D. Reduce our dependence on foreign oil by developing renewable
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I
* * * TEXT OF PROPOSED IAWS(PROPOSITION 87 CONTINUED)
sources ofenergy and clean alternative fuels, iircreasing their usage here
in California, and improving our energy efficiency;
E. Improve our environment, public health, and quality of life by
reducing emissions ofcarbon dioxide and other global warming gases;
F. Reduce by 25% our use of petroleum transportation fuels in
California from the 2005 level of 16 billion gallons annually to begin
conserving four billion gallons annually by 2017, and conserve a total of
10 billion gallons ovsr ten yearqbetween 2007 and20l'l:'
G. Invest in energy education in California so that California
workers. can take advantage of the job opportunities that will open up for
those trained in emerging energy systems, technolbgies, and management
methods;
H. Make full use of California's internal resources and its capability
for inTovation to develop new ways to meet four.of the state's important
long-term goals: the Renewable Portfolio Standard, Control ofGreenhouse
Gas Emissions from Motor Vehicl'es, the Governor's Greenhouse Gas
targets, and the petroleum reduction goals set forth in this Act;
L lmpose an assessment on oil extracted from California's oil wells
to ensurd that California consumers' future energy needs are met without
raising gasoline prices for consumers today. By ensuring that oil produeers
in California finally pay their fair share, we will create a dedicated funding
stream of approximately $4 billion to secure California's future energy
independence;
J. Ensure that California oil companies fully comply with the excess
profits assessment and protect consumers by prohibiting the oil companies,
consistent with U.S. Supreme Court precedent, from attempting to gouge
consumers by using the assessment as a pretext to raise prices on oil,
gasoline, and diesel fuels in Caiifornia; and
K. Ensure that the revenues frbm'the new assessment on California
oil producers are invested wisely in the most promising research and
technologies, and require mandatory independent audits.and annual
.progress reports so that the leaders ofthis project are accountable to the
people ofCalifornia.
SEC. 4. Article XXXVI is added to the California Constiturion, to
read:
SECTION L There is hereby established in state government the
Clean )hernative Energy Program.
SEC. 2. The Cleai Alternative Energy Program shall be
administered by the Califurnia Energy Alternatives Program Authority,
which is established in Division 16.(commencing with Section 26000)
of the Public Resources Code, and shall be funded by the California
Energy Independence'Fund Assessment,.which is established in Part
21 (commencing with Section 42000) of Division 2 of the Revenue and
Taxation Code.
SEC. 3. In addition to thd powers set forth in Division 16
(commencing with Section 26000) of the Public Resources Code,'the
Califtrnia Energy Alternatives Program Authority shall have the power,
notwithstanding Article XVI, any other article of this Constitution, .or
any, other provision of law, to use revenueE produced by the California
Energy Independence Fund Assessment to provide incentives including,
but not limited to, grants, loans, loan gudrantees, buydowns, and credits
to universities, community colleges, research institutions, individuals,
companies, associations, partnerships, and corporations pursuant to the
Clean Alternative Energy Act or to secure the repoyment of any bonds,
bond anticipation notes, and other obligations and indebtedness of the
authority issued pursuant to Division 16 (commencing with Section 26000)
of the Public Resources Code, and any other costs associated with such
bonds, that are used to fund such incentives.
SEC. 4. (a) Revenues produced by the Catifornia Energy
Independence FundAssessment shall be deposited in the California Energy
Independence Fund, which is hereby created as a specialfund in the State
Treasury, to be held in tru.st for the purposes. of the Clean Alternative
Energy Act. Moneys held in the California Energy Independence Fund are
hereby continuoilsly appropriated, without regard tofiscal year, for those
purposes alone.
(Ii) The.Catifornia Energy Alternatives Program Authority shall
be authorized to expendfour billion dollars (84,000,000,000) from the.
California Energy Independence Funld for the purposes of the Clean
Alternative Energy Act, as provided in subdivision (d) of Section 26045 of
the Public Resources Code.
(c) The proceeds of any bonds, bond anticipation notes, and other
obligations and indebtedness of the authority issued pursuant to Division
16 (commencing with Section 26000) ofthe Public Resources Code, the
revenues produced by any grants or loans made pursuant to the Clean
Alternative Energy Act, and any royalties .or license fees generated
pursuant to the Clean Alteriative Energy Act shalt be depositbd in the
California Energy Independence Fund and are hereby continuously
appropriated, without regard to fscal year, for the purposes of the Clean
Allernative Energy Act alone.
(d) The moneys in the California Energy Independence Fund may not
be usedfor any purpose or program other than the lurposes or programs
authorized by the Clean Alternative Energy Act, and may not be loaned to
the s.tate General Fund, or to any other fund of the statZ, or to any fund of
a county, or any other entity, or botowed by the Legislature, or any other
state or local agency, for any purpose other thai the purposes authorized
by the Clean Alternative Energy Act.
(e) Notwithstanding' any other provision of this Constitution,
revenues generated by the Califurnia Energy Independence Fund
Assessment sh:dll nqt be deemed to be "revenues" or "taxes" for purposes
of computing any state.expenditure or appropriation limit that is enacted
on or after June 6, 2006, nor shall their expenditure or appropiriation be
subject to any reductibn or limitation imposed pursuant to any p'rbvision
enacted after that date.
SEC. 5. Section 14 is added to Article XIII B of the California
Constitution, to read:
SEC. 14. (a) 'Appropriations subject'to limitation" ofeach entity
of government shall not include appropriations of revenue from the
California Energy Independence Fund, which is established in subdivision
(a) of Section 4 of Article XXXW. No adjustment in the appropriations
limit ofany entity of government shall be required pursuant to Section 3 as
a result ofrevenue being deposited in or appropriatedfrom the Califurnia
Energy Independence Fund.
(b) Revenues generated by the California Energy Independence
Fund Assessment shall not be considered General Fund revenues for the
purposes ofSection 8 and Section 8.5 ofArticle XVI.
' SEC. 6. Section 26004 ofthe Public Resources Code is amended
to read:
26004. (a) There is in the state €iovernment the ffirnia
ing California
Energy Alternattves Program Atthority. The authority constitutes a public
instrumentality and the exeicise by the authority of powers conferred
by this division and Article XXXVI of the Califurnix Constitution is the
performance of an essential public function.
. (b) The authority shall consist offive zlze members, as follows:
(l) The Se.cretary for Environmental Protectioa iFhc--Eiteetor-of
Firtance.
(2) The Chairperson of the State Energy Resources Conservation
and Development Commission.
(3)The,
Treasurer.
(a) Thr€ontrofter A Califurnian who has expertise in economics,
engrgy markets, and energy effciency technologies, appointed by the
Governor.
(s)
A Californianwho has expertise, andwho has demonstrated leadership, in
public health, appointed by the Governor.
16) A Cilifornian who has expertise in finance, start-ups, and
venture capital, preferably with experiencd in enterprises comparable in
scale and purpose to those that would be eligible for funding.pursuant to
the Clean Alternative Energy Act, appointed by the Controller.
(7) A renewable energy or energy fficiency expertfrom a Califurnia
university that awards doctoral degrees in the scipnces who is either a
member of the National Acaderny of Sciences. or the National Academy of
Engineering, or a Nobel Prize laureate, appointed by the Speaker ofthe
Assembly.
(8) The dean or a tenured faculty member of a major, nationally
recognized California business school that awards post-graduate degrees
who has significant experidnce in as many as possibld of new technology
ventures, entrepreneurship, consutner marketing, consumer adoption of
new trends, and enterprises comparable in scale and purpoEe to those thaf
would be eligible for funding pursuant to the Clean Alternative Energy
Act, appointed by the Senate Committee on Rules.
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TEXT OF PROPOSED LAWS * * *
(9) A Californian who has expertise, and who has demonstrated
leadership, in consuner advocacy, preferably with substantia.l experience
in consunter marketing and business, appointed by the Attorney General'
(c).The members listed in paragraphs (1) to (sXi), inclusive, of
subdivision (b) may each designate a deputy orcl,edcir:r-lrisor gsney
wfro
is employed under the member's authority, and, notwithstanding Section
7.5 of the Government Code, each such designee may act in his or her
place and stead on the board. While serving on the board, the deputy nay
exercise the same powers that the member could exercise if he or she were
personally present.
(d) The first meeting ofthe authority after the voteis' enactment of
the Clean Alternative Energy Acl shall be convened by the Treasurct v'ithin
60 days ofthe effective date ofthe Act. At thefrst meeting, the members of
the authority shall elect a chairperson, who shall serve a twci'year term.
No chairperson shall serve moie than two consecutive two-yeal telms'
(e) Members of the authority and any entity controlled by a member
shall not be eligible to apply for any incentive including, but not limited
to, any grant, loan, loan guarantee, credit, or buydown awarded by the
authority or any contract made by the authority.
(fl Members ofthe authority appoiited pursuant to paragraphs (4)
to (9), inclusive, ofsubdivision (b) shall servefour-year terms and shall be
eligible to serve a maximum of two terms.
(g) Service as a member of the authority by a member of the faculty
or administration of the University of California shall not, by itself, be
debmed to be inconsistent, incompatible, in confict with, or inimical
to the duties of a member of the authority as a member of the.faculty
or administration'of the (Jniversity of California and shall not result. in
automatic vacation of either ffice. Service as a rhember of the authority
by an employee of an entity that is eligible for funding from the authority
shall not be deemed to be inconsistent, incompatible, in confict with, or
inimical to th'e duties of a member of the authority.as an employee of an
entity that is eligibleforfundingfrom the authority.
SEC. 7. Section 26005 of the Public Resources Code is amended
to read:
26005. All mbmbers of the authority shall serve thereon without
compensation as members of the authority, except for the members
oppiintrd purtuant to paragraphs (4) to (9), inclusive, of subdivisi'on (b)
of Section 26004, who shall be entitled to receive a per diem, established
by the Department ofPersonnel Administration, based on comparable per
dieri paid to members of similar state boards and commissions, for each
day actually spent in the discharge of the member's duties: All members
of the authority shall be entitled to reasonable and necessary travel snd
other expenses incurrid in the performance ofthe member's duties.
SEC. 8. Section 26006 of the Public Resources Code is amended
to read:
26006. The provisions of this division shall be administered by the '
authority which shall have and is hereby vested with all powers reasonably
hecessary to carry out the powers and responsibilities expressly granted
or imposed upon it under this division and under Article XXXVI of the
C a I ifo r n i a C on s t it ut i o n.
SEC. 9. Section 26008 ofthe Public Resources Code is amended
' to read:
26008. (a) Theauthority @
@is-{ivision shall appoint a chief executive
fficer with substantial business experience in the private sector at a
senior management level, preferably with experience in new technology,
to Serve thd authority, as soon as reasonably practicable. The exeffitiee
director chief executiue fficer sl-rall serve at the pleasure of the authority
@. The chief executive fficer's primary
responsibilities shall be to hire, direct, and manage the authority's staff;
to develop the authority's two-year and ten'year stlategic plans pursuant
to Section 26045; to develop and recommend standards and procedures,
including a competitive selection process, to govern the authority's
consideration and imard of incentives including, but not limited to, grants,
loans, Ioan guarantees, credits, and buydowns pursuant to Section 26045;
'to develop recAnmendations for the award ofincentives including, but not
limited to, grants, loans, loan guarantees, credits, and buydowns pursuant
to Section 26045; to develop and recommend procedures and standards
to monitor recipients of incentives including, but not limited to, grants,
loans, loan guarantees, credits, and buydowns awarded by the authority
pursuant to Section 26045; and to execute and manage contracts on behalf
of the aulhority.
. (b) From time to time, the authority shall deterimine the total number
of authorized employees for thg authority.
(t) Notwithstanding Sections 19S16, 19825, 19826, 19829, anit
,198j2 of the Government Code, the authority shall fix and approve
the compensation of the chief executive fficer and other staff of the
authority.
(2) lttthen fxing and approving the compinsation of the chief
executive fficer and other staff of the authority pursuant to paragraph
(I), the authority shall be guided by the principles contained in Sections
19826 and 19829 of the Government Code, conststent with the authority's
respdnsibility to recruit and'retain highly qualifed and .effective
employees.
SEC. 10. Section 26010 ofthe Public Resources Code is amended
to read:
26010. (a) The Attorney General shall be the legal counsel for the
authority, but with the approval ofthe Attorney General, the authority may
employ such legal coun-sel as in its judgment is necessary or'advisable
to enable it to carry out the duties and functions imposed upon it by this
division, including the employment ofsuch bond counsel as may be deemed
advisable in connection with the issuance and sale ofbonds.
(b) The M-+inance Treasurer shall be the tfeasurer of the
authority.
SEC. 11. Section 26020 ofthe Public Resources Code is amended
to rea*
26020. @ The authority may incur indebtedness and issue and
renew negotiable bonds, notes, debentures, or other securities of any kind
or class lo carry oui its corporate purposes. All indebtedness, however'
evidenced, shall be payable solely from revenues ofthe authority, including
rhe proceeids from tie assess ment imposed pursuant to Part 2 I (commencing
with Section 42000) of Division 2 of the Revenue and Taxation Code and
the proceeds ofits negotiable bonds, notes, debentures, or other securitids;
toffiing.
cittrcref+lte-ft'lbwirtgr
.
SEC. 12. Section 26021 ofthe Public Resources Code is repealed'
#Saetion-26e2e
SEC. 13. Section26022 ofthe Public Resources Code is amended
to read:
26022. (a) The authority is authorized from time tb time to issue
its negotiable bonds, notes, debentures, or other securities (hereinafter
colleciively called "bonds") for any of its purposes. The bonds may be
authorized, withouJ limiting- the generality of the foregoing, to finance
a single project for a single participating party, a series of projects for
a single participating pafiy, a single project for several participating
parties, or several projects for several participating patties and tofinance
expenditures authorized by the Clean Alternative Energy Aci as setforth in
Chapter 4 (commencingwith Section:26043). In anticipation ofthe sale of
bonds as authoiized by Section 2602@
Saction-2502+, the authority may issue negotiable bond anticipation notes
and mayrenew the notes from time to time. The bond anticipation notes
may be paid from the proceeds of sale of the bonds of the authority in' anticipation ofwhich they were issued. Notes and agreements relating to
the notes an'd bond anticipation notes, hereinafter collectively called notes,
and the resolution.or.resolutions authorizing the notes may contain any
provisions, conditions or limitations which a bond, agreement relating to
the bond, and bond resolution of the authority.may contain' However, a
note or renewal ofthe note shall mature at a time not exceeding two years
1621 textol r ""d [aws* **
I
(PROPOSITION 87 CONTINUED)
('"
* * * TEXT OF PROI'OSED IAWS
from the date ofissue ofthe original note.
(b) Except as may otherwise be expressly provided by the authority
and except as more particularly provided in subdivision (e), every issue
ofits bonds, notes, or other obligations shall be general obligations ofthe
authoritypayable from any revenues ormoneys ofthe authority available for'these purposes and not otherwise pledged, subject only to any agreerirents
with the holders ofparticular bonds; notes, or other obligations pledging
any particular revenues or moneys and subject to any agreements with
any larticipating party. Notwithstanding that the bonds, notes, or oiher
obligations may be payable from a special fund, they are for all purpoies
negotiable instruments, subject only to the provisions of the bonds, notes,
or other obligations for registration.
(c)
Bonds may be issued as serial bonds or as term bonds, br the authority,
in its discretion, may issue bonds of both types. The bonds shall be
authorized by resolution ofthe authority and shall bear the date or dates,
mature at the time or times; not exceeding 50 years from their respective
dates, bear interest at the rate or rates, be payable at the time or times,
be in the denominations, be in the form, either coupon or registered,
carry the registration privileges, be executed in a manner, be payable in
lawful money of the United States of America at a place or places, and
be subject to terms of redemption, as.the resolution or resolutions may
provide provided, however, that bionds issued for purposes of the Clean
Alternative Energy Act shall have a niaturity ofnot more than 25 years.
The bonds or notes shall be sold by the Treasurer within 60 days ofreceipt
of a certified copy of the authority's resolution authorizing the sale of the
bonds. However, the authority, at its discretion, may adopt a resolution
extending the 60-day period. The sales may be a public or prir4ate sale,
and for the price or prices and on the terms and conditions, as the authority
shall determine ions
e bonds
offiotes. Pending preparation of the definitive bonds, the Treasurer may
issue interim receipts, certificates, or temporary bonds which.shall be
exchanged for the definitive bonds. The Treasurer may sell any bonds,
notes, or other evidence of indebtedness at a price below their par value.
of+@:
(d) Any resolution or resolutions authorizing any bonds or any issue
ofbonds may contain provisionS, which shall be a part ofthe contract with
the holders ofthe bonds to be authorized, as to all ofthe following:
(1) Pledging the full faith andbredit of the authority orpledging all or
any partofthe revenues ofany project or any revenue-producing contract
or contracts made by the authority with any individual, partnership,
corporation, or association or other body, public or private, or other
moneys of the authority, including moneys deposited in the California
Energy Independence Fund cyeated by Article XXXW of the California
Constitution, tO seOure the payment ofthe bonds or of any particular issue
ofbonds, subject to the agreements with bondholders as may then exist.
. (2) The rentals, fees, purchase payments, loan repayments, and other
chalges to be charged, and the amounts to be raised in each year by the
chalges, and the use and disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the regulation
and disposition ofthe reserves or sinking funds
(4) Limitations on the right ofthe authority or its agent to restrict and
regulate the use ofthe project or projects to be financed out ofthe proceeds
ofthe bonds or any particular issue ofbonds.
(5) Limitations on the purpose to which the proceeds of sale of any
issue ofbonds then or thereafter to be issued mdy be applied and pledging
those proceeds to secure the payment of the bonds or any issue of the
bonds.
(6) Limitations on the issuance ofidditional bonds, the terms upon
which additional bonds may be issued and secured and the refunding of
outstanding bonds.
. (7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount ofbonds the holders
ofwhich must consent thereto, and the manner in which that consent rnay
be given.
(8) Limitations on expenditures for operating, administrative, or
other expenses ofthe authority.
(9) Defining the acts or omissions to act which constitute a default
in the duties ofthe authority to holders of its obligations and providing the
rights and remedies ofthe holders i4 the event ofa default.
' (10) The mortgaging_of any project and the site ofthe project for the
purpose of securing the boirdholders.
(l l) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
(12) Procedures for the selection ofprojects to be financed with the
proceeds ofthe bonds authorized by the resolution, ifthe bonds are to be
sold in advance ofthe designation ofthe projects and participating parties
to receive the financing.
(e) Notwithstanding any other provision ofthis division, the authority
Tnay pledge all moneys which are deposited in the Debt Service Account of
the California Energy Independence Fund, which is established by Article
XXXVI of the Ca.lifornia Constitution, to the payment of the principal
ofpremium, tfany, or interest on any bonds, boid anticipation notes or
other obligations of.the authority used to finance the Clean Alternqtive
Energy Act, together with payment of all ancillary obligations, as that
term is ilefined in Section 26048, or other costs ofissuing or carrying such
bonds. The authority sh.all determinefrom time to time and notify the State
Board of Equalization in writing the amounts which must be deposited
each month, or during the course ofeachfiscal year, in the Debt Service
Account to providefor all the aforementioned payments and costs, and any
coveragefactors which are required by the bond documents. lfhe lien ofthe
pledge ofthe amounts in the Debt Service Account shall vest automdtically
upon the execution and.delivery of the resolution, tlust agreement, or
other agreement relating to the bonds, bond anticipation notes, other
obligations, or ancillary agreements, without requiiement of any filing or
notice. Ifmoneys are deposited in the Debt Service Account which exceed
the amounts necessary to pay current obligations for repayment ofbonds,
other obligations and ancillary obligations, the authority shall apply such
excess funds to the early retirement of such bonds to the inaximum extent
fscally prudent.
@ (l) Neither the members of the authority nor any person executing
the bonds or notes shall be liable personally on the bonds or notbs og be
subject to any personal liability or accountability by reason ofthe issuance
lhereof.
fr k) The authority shall have power out of any funds avai lable for
these purposes to purchase its bonds o! notes. The authority may hold,
pledge, cancel, or resell those bonds, subject to and in accordance with
agreements with bondholders.
SEC. 14. Section26024 bfthe Public Resources Code is amended
to read:
26024. Bonds issued under the provisions of this division shall not
be deemed to constitute a debt or liability of the state or of any political
subdivision thereof, oth6r than the authoiity, or a pledge of the fiith and
credit of the state or of any such political subdivision, other than the
authority, but shall be payable solely from the funds herein provided
therefor. All such bonds shall contain on the face thereof a statement to
the following ef,lect:
"Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment bfthe principal of or interest on this. bond."
The.Except as iet forth in Sections 26022 and 26049, /re issuance of
bonds under,the provisions ofthis division shall not directly oi indirectly
or contingently obligate the state or any political subdivision thereof to
levy or to pledge any form of taxation whatever therefor or to make any
appropriation for their payment. Nothing contained in ttiis section shall
prevent nor be construed to prevent the authority from pledging its full
faith and credit to the payment of bonds or issue of bonds authorized
pursuant to this division.
SEC. 15. Section26029.4 of the Fublic Resources Code is am'ended
to read:
26029.4. Subject to Section 26029.6, the existence ofthe authority
'may be terminated at any time by the Legislature no iooner than January
1, 2027, or after the assets of the authority have been fully expended,
whichever is later. Upon dissolution of the authority, the title to all
properties owned by it shall, subject to the interests of any participating
parties therein, vest in and become the property ofthe State ofCalifornia
and shall not inufe to the benefit of any private pafiy. Notwithstanding
the foregoing, so long as any bonds or other obliga[ions sbcured by the
assessment iuposed by Part 2l (commencing with Section 42000) of
Division 2 ofthe.Revenue and Taxation Code rernain outstanding, neither
* * * Text ol Proposed laws I 163
TEXT OF PROPOSED IAWS * * *
the Legislature nor the people may reduce or eliminate the assessment,
and this pledge may be included in the proceedings of any such bonds as a
covenant with the,holders of such bonds.
SEC. 16. Section 26033 ofthe Public Resources Code is amended
to read:
. 26033. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, shall be deemed to be trust
funds to be held and applied solely as provided in this division. Any bank
or trust company with which such moneys shall be deposited shall act as
trustee of such moneys and shall hold and apply the same for the purposes
hereof, subject to such regulations as the resolution authorizing the bonds
of any issue or the trust agreements securing such bonds may provide. The
proceedsfrom the assessment imposed pursuant to Palt 21 (commencing
with Section 42000) of Division 2 ofthe Revenue and Taxation Code, the
proceedsfrom the sale ofbonds, notes, or other evidences ofindebtedness
secured by the assessment, and any revenues generated by the Clean
Alternative Energy Act shall be deposited in the California Energy
Independence Fund, as established by Section 4 ofArticle XXXVI ofthe
California Constitution, and shall be used solely for the purposes of the
Clean Alternative Energy Act. Notwithstanding any other provision of
law, proceeds of bonds issued pursuant to this division, including those
deposited in the Clean Energy Indbpe4dence Fund, may be held by a
trustee outside the state treasury system as provided by this chapter.
SEC. 17. Chapter 4 (commencing with Section 26043) is added to
Division 16 ofthe Public Resources Code, to read:
Ca*rsn 4. Ctptu ALrsnN.srIVE ENERGY PRqGRAM
Article L General Provisions
26043. This chapter implements the Clean Alternative Energy Act,
including ArticleXXXVI ofthe California Constitution. As used throughout
this chapter, "Act" referg to the Clean Alternative Energy Act.
26044. This chapter shall govern the expenditure of all revenues
deposited in the Califurnia Energy Independence Fund'
26045. In addition to its other powers and duties, the authority
s hall p erform the following func tions :
(a) Iltithin nine months of the effective date of the Act, and every
two years thereafter, adopt or modify two-year and ten-year strategic
plans to guide the authority's funding.decisions in the area! ofpetroleum
use reduction, academic research and vocational training, technology
innovation, and public education in order to meet the goals of this Act
within 10 years ofthe adoption ofthe authority's initial strategic plans.
(b) Adopt procedures and standards, including a competitive
selection process, to govern the authority's consideration and award of
incentives including, but not limited to, grants, loans, loan guarantees,
credits, and buydowns. The incentives approved by the authority shall not
be deemed to be contracts subject to the Public Contract Code.
(c) Award incentives including, but not limited to, grants, loans,
loan guarantees, credits, and buydowns, through a competitive selection
process designed to achieve the objectives of this Act within l0 years of
the date of adoption of the authority's initial strategic plans. For loans
and loan guarantees, to the extent permitted under California law, the
authority shall use all prudent means to maximize the impact of the loans
and loan guarantees by recycling funds or remarketing loans or loan
guaranlees.
(d) Expendfour billion dollars ($4,000,000,000) within tenyears of
the date ofadoption ofthe authority's initial strategic plans to.achieve the
objectives ofthe Actfrom either the proceeds ofbonds or other obligations
of the authority or fiom the California Energy Independence Fund
Assessment deposited in the accounts established pursuant to subdivision
(b) ofsection 26049. This amount shall not include the costs ofrepaying
indebtedhess associated with the Clean Alternative Energy Act, including
principal, interest, ancill.ary obligations, and other costs of any bonds
issued pursuant to Division 16 (commencing with Section 26000) of the
Public Resources Code. The authority shall expend any additional dmounts
,nmoiring in the California Energy Independence FunQ infurtherance of
the purposes of this Act.
(e) Adopt procedures and standards to monitor recipients of
incentives including, but not limited to, grants, loans, Ioan guarantees,
credits, and buydowns, awarded by the authorily.
(fl Adopt objective standards to measure the authority's success in
meeting the goals ofthis Act.
(g) Ensure the completion of an annual independent fnancial
audit ofthe aulhority's operations and issue public reports regarding the
o ulhor ily's activitie s.
. (h) Notwithstanding Section 11005 of the Government Code,
accept additional revenue and real and personal property including,
but noi limited to, gfts, bequests, royalties,'interest, and appropriations
to supplement the authority's funding. N$twilhstanding Section 26049,
donors may earmark gifts for a particular purpose duthorized by this Act.
(i) Appoint one advisory review committee of no more than nine
members for each account established pursuant to subdivision (b)
of Section 26049 to assist the authority in its review of applications
for funding, if the authority determines that it is necessary to obtain
expertise in market dynamics or technology that is not avizilable within
the authority. Members ofreview committees shall be entitled to receive
a per diem, established by the Department of Personnel Administration,
based on comparable per diem paid to members of slmilar state review
committees, for each day actually spent in the discharge of the member's
duties, plus reasonable and necessary travel and other expenses incurred
in the perforiance ofthe member's duties. Members ofthe advisory review
committees and any entity controlled by a member shall not be eligible to
applyfor any incentive including, but not limited to, any gran4 loan, Ioan
guarantee, credit, or buydown awarded by the authority or any contract
made by the authority.
(j) Apply for federal matching funds where possible'
(k) Adopt rcgulations pursuant to the Administrative Procedure Act
(Ch 3.5 (commencingwith Sec. 11340), Pt. 1, Div.3, Title 2, Gov. C.) as
necessory to implement this Act. In order to expedite the commencement
of the piogram mandated by this Act, however, the quthority may adopt
interim regulations, including standards, without complying with the
procedures set forth in the Adminis*ative Procedure Act. The interim
regulations shall remain in effect for 270 days unless earlier superseded
by regulations adopted pursuant to the Administrative Procedure Act'
26046. The authority shall take all actions ituthorized by this
chapter by a majority vote ofa quorutn ofthe authority, except as required
by subdivision (fl ofSection 26050 and subdivision (c) ofSection 26056.
26047. Section 1090 of the Government Code shall not..apply to
'any incentive including, but not limited to, a grant, Ioan, loan guarantee,
credit, or buydown, or contract awarded by the authority pursuant to this
chapter except where both of the following conditions are met:
(a) The member has a financial interest in an incentive or contract.
(b) The nember fails to recuse himself or herself from making,
participating in making, or in any v)ay attempting to use his or her fficial
position to infiuence a decision on the incentive or contract.
Article 2. Defnitions
26048. As used in this Act, the following terms shall have the
following meanings:
fu) 'Ahcillary obligation" medns an obligation of the authority
entercd into in connection with any bonds issued under this division,
i nclu d i ng I h e fol I owing :
(t) A credit enhancement or liquidity agreement, including any credit
enhancement or liquidity agreement in theform ofbond insurance, letter
of credit, standby bond purchase qgreement, reimbursemenl agreemenl,
Iiquidity facility, or other similar arrangement.
(2) A remarketing agreement.
. (3) An auction agent agreement.
(4) A broker-dealer agreement or other agreement relating to the
marketing of the bonds.
(5) An interest rate or other type of swap or hedging contract.
(6) An investment agreement, forward purchase agreement, or
similar structured investment contract.
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(PROPOSITION 87 CONTINUED)* * * TEXT OF PROPOSED IAWS
(b) "Buydown" means a payment to cover up to 100 percent ofthe
dffirenee in the pur"chase price between a clean alternative fuel vehicle
and a comparable dedicated gasoline or diese! vehicle.
(c) "Clean aliernative fuels" means fuels for use in transportation
including, but not limited to,. hydrogen, methanol, natursl gas, ethanol
blends consisting of at least 85 percent ethanol, and biodiesel blends
consisting of at least 20 percent biodiesel that, when used. in vehicles,
have been demonstrated, to the satisfoction ofthe authority, to have the
ability to meet applicable vehicular emission standards and that, relative
to petroleum use, produce no net materia.l increase in air pollution, water
pollution, or any other .substances that qre knowt,t to damage human
health, and reduce global warming pollution considering thefullfuel-cycle
assessment. Any fuel not specifcally mentioned above must signifcantly
decrease global warming pollution emissions compared to petroleum,
considering the full fuel-cycle assessmeni, in order to be considered a
clean alternative fuel.
(d) "Clean alternative fuel infrastructire" means facilities and
equipment dedicated to clean alternative fuel production, storage, and
distribution.
(e) "Clean alternative fuel vehicles" means light, rnedium-, and
heavy-duty conversions, conversicin systems, and vehicles powered by
clean alternative fuels, flexible-fuel vehicles, plug-in hybrids powered
primarily by electricity, and battery-powered electric vehicles, all ofwhich
have been demonstrated, to the satisfaction of the authority, to have the
obility to meet applicablevehicular emission standards and that, relative to
petroleum use, produce no nlet material increase in air pollution (including
global warming pollution), water pollution, or any ether substances that
are known to damage human health and which meet all applicable safety
certifcations and standards necessaly to operate in California.
(f) "Energy fficiency technologies" means methods of obtaining
more or better services from less energy, compared with typical current
prqcl ices in Ca I iforn ia.
(g) "Full fuel-cycle assessment" means evaluating and comparing
thefull environmental and health impacts ofeach step in the life cycle ofa
fuel, including, but not limited to, all of thefollowing:
(t) Feedstock extraction, lronsport, and storage.
(2) Fuel production, distribution, transpor.t, and storqge.
(j) Vehicle operation, including refueling, combustion or convers iott,
and evaporalion
(4) Electricity generdtion, distribution, and storage, when used in
veh icles for tra nsportat i on.
(h) "Petroleum reduction" means methods of reducing total
projected petroleum use in California either through increased energy
fficiency, clean alternativefuels, or a combination of both.
(i) "Renewable energy technologies" means energy production
techniques, products or systems, distribution techniques, products or
systems, qnd transportation machinery, products or systems, all ofwhich
utilize solely energy resources that are naturally regenerated over a
short time scale aid delivered directly from the sun (such as thermal,'
photochemical, and photoelecfuic), indirectly from the nm (such as
wind, hydropower facilities of J}MIV or kss that are consistent with
subparagraph (D) ofparagraph (3) ofsubdividion (b) ofsection 2574j of
the Public Resources Code, and photosynthetic energy stored in biomass
consiEtent with subdivisions (d) aid fl of Section 25743 of the Public
Resources Code), orfrom other natlrral movements or mechanisms ofthe
environment, such as geothermal dnd tidal energy. Renewable energy
technblogies do not include technologies that use energy resources dbrived
from fossil fuels, waste producls from fossil sources, or woste products
from i norgan i c sou rces.
Article 3. Allocation ofFunds
associated with the issuance or carrying of any bonds, bond anticipation.
notes, or other o.bligations and indebtedness of the authority, and any
other costs determ.ined by the authority to be necessary to carry out the
fnancing authorized by this chapter. Notwithstanding any other provision
oflaw, moneys in the Debt Service Account gre continuously appropr'iated,
without regard to fscal year, to the authority for the repayment of bonds,
other obligations or indebtedness or ancillary obligations or other costs of
the authority relating to outstanding bonds and may,be held by a trustee as
authorized by Section 26023.
(b) Aftei funds have been deposited in the Debt Service Account
pursuant to subdivision (a).in any month, all funds deposited in tbe
California Energy lndependence Fund for that month, except as otherwise
provided by this Act, shall be allocated as follows:
. (l)'Fifty-seven and one-half percent (57.5%) to the Gasoline and
Diesel Use Reduction Account, which is hereby created.
Q) Twenty-six and three-quarters percent (26.75%0) to the Research
and Innovation Acceleration Account, which is hereby created.
(3) Nine and three-quarters percent (9.75%o) to the Commercialization
Acceleration Account, which. is hereby created.
(4) Two and one-half percent (2.5%o) to the Vocational Training
Account, which is hereby created.
O) Three'and one.halfpercent (3.5ozo) to the Public Education and
Administration Account, which is hereby created.
(c) Any funds allocated. to the accounts established by paragraphs(l) to (5), inclusive, of subdivision (b) that are not encimbeiei or
expended in anyfiscal year shall remain in the same accountfor the next
fscal year, except as provided in subdiyision (d) ofsection 26058, Once
all expenditures authorized by this Act haie been made from the accounts
established by paragraphs (I) to (5), inclusive, of subdivision (b), att
proceeds from the California Energy Independence Fund Assessment shall
be deposited in the Debt Service Account established by subdivision'(a)
until all obligations secured or pq,able from such account have been pail
.,or payment has been providedfor.
(d) Funds deposited in the accounts of the California Energy
Independence Fund created in subdivision (b) shall be used to supplement,
and not to supplant, existing statefundingfor research, vocational training,
and tbclhnological development and deployment involving petrolet;m
reduction, energy fficiency, and renewable eiergy. To maximize the use
of available funds, the authority shall coordinate its expenditure offunds
in the California Energy Independence Fund with other state agencies to
avoid duplication and to ensure.that thefunds are expended fficiently and
effcaciously.
.
26050. Based on the standards set forth in Section 26056, the
authority may use the funds in the Gasoline and Diesel (Jse Reduction
Accountfor thefollowing categories ofexpendittres, based on the relative
merit in petroleum reduction of transportation-related applications to the
authority for funding from this account:
(a) Market-based incentives including, but not limited to, loans, loan
guarantees, credits, and buydowns tofeets andindividualsfor the purchasA
of clean alternativefuel vehicles sold in Califurnia. For buydowns to stcite
and local government agencyfleets, the authority shall give preference to
school bus, emergency services vehicle, waste disposal truck, and mass
transit busfleets. Other than these preference categories, buydowns will
be market-based and subject to the authority determining that the buydown
will signifcantly assist the technology to a.chieve unsubsidized market
competitiveness. Demonstration projects are discouraged.
(b) Production incentives including, but not limited to, loans, loan
guarantees, and creditsfor clean alternativefuel production in California,
excluding the production of electicity, except clean fuel cell based
e lbctr ic i t y p rod u ct ion.
(c) Incentives including, but not limited to, loans, Ioan guarantees,
credits, and grants for the construction of publicly accessible clean
alternative fuel refueling statiens, including refueling stations that sell
ethanol blends consisting of at least 85 percent ethanol (E-85) sufrtcient
in number to match the existing supply of E-85 vehicles in Caldornia
based on the ratio of diesel vehicles to diesel fuel stations, and elebtric
vqhicle chargers using similar criteria. The authority should consider
issuing'suitable requests for proposals for refueling stations os soon as
practicable.
(d) Incentives including,but not limited to, loans, loan guarontees,
26049. (a) From the revenues generated by the California Energy
Independence Fund Assessment, there shail rtr$ be deposited in each
calendar month into the Debt Service Account of the California Energy
Independence Assessment Fund, which account is hereby created, ntoneys
in such an amount as the authority determines and notifies the State
Board ofEqualization in writing is necessary and appropriate to pay the
debt service on any outstanding bonds, bond anticipation notes, or other
obligations and indebtedness ofthe authority, together with any ancillary
obligations, any coveragefactors required by the bond documents, any costs
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TEXT OF PROPOSED LAWS * * *
and grantsfor the installation ofpublicly accessible clean alternativefuel
infrastructure.
(e) Grants and loans to private enterprises for research involving
clean alternative fuels and clean alternative fuel vehicles in Califtrnia.
'(fl Other expenditures which the authority determines, by a vote of
seven or more members ofthe authority, represent urgent or extraordinary
opportunities involving vehicle or fuel technologies that will advance the
goal of reducing the use of petroleum transportation fuels in California
from 2005 levels by ten billion (10,000,000,000) gallons aver 10 years'
26051. Based on the standalds set forth in Section 26057, the
authority shall use the funds in the Research and Innovation Acceleration
Account to make grants to California universities fot facilities, post-
baccalqureate student research training gtants, and research, performed
and located wholly on the contiguous campus of the university' to
improve the economic viability and accelerate the commercialization of
reiewable energy technologies, such as solar, geothermal, wind, and wave
technologies, and energy fficiency technologies in buildings, equipment,
electricity generation, and vehicles.
26052. . Based on the standards set forth in Section 26058, the
authority shall use the funds in the Commercialization Acceleration
Account to provide incentives including, but not limited to, loans, loan
guarantees, and grants tofund the one-time or start-up costs ofintroducing
petroleum reduction and renewable energy technologies, energy efficiency
technologies, clean alternative fuels, and clean alternative fuel vahicles
including, but not limited to, the certifcation ofproducts, vehicles' and
distribution systems, andfor other costs that will accelerate the production
and distribution of commercially viable products and technologies to the
market and that, preferably, will promote Callfurnia-based job creation,
employment, and economic development.
26053. Based on the standards in Section 26059, the authority shall
use thefunds in the l/ocational Training AL'count lo:
(a) Make grants through the Office of the Chancellor of Community
Colleges to California commuiity colleges for staff development and
'facilities to train students to work with renewable energy technologies,
energy fficiency technologies, and clean alternative fuels, in buildings,
equipa"r\, electricity generation, and vehicles.
(b) 'Make grants through the Office of the Chancellor of Community
Colleges to California community colleges for tuition assistance for low-
income students and former fossil fuel energy workers and certifed vehicle
mechanics to obtain training to work with renewable energy technologies'
such as solar, geothermal, wind, and wave technologies, clean alternative
fuels, and energy fficiency technologies, in buildings, equipment,
electricity generation, and vehicles.
, 26054. Based on the standards in Section 26060, the authority shall
use thefunds in the Public Education and Administration Account to:
(a) Educate the California public regarding the importance of
energy efficiency technologies, renewable energy technologies, and full
fuel -cycl e pe t rol e u m red uc ! ion.
(b) Administer the authority.
(c) Monitor the implementation of the California Energy
Independence Fund Assessment and refer any evidence that oil producers
are attempting to gouge consttmers by passing the assessment on to
consunxers in the form of higher prices for oil, gasoline, or dieselfuel to
the Board of Equalization for investigation.
Article 4. Standards
26055. The authority shall establish the following standards:
(a) Intellectual Property Rights. The authority shall establish
standards requiring that all research grants made pursuant to this Act shall
be subject to intellectual property agreements that balance the opportunity
ofthe State ofCalifornia to beneftfrom the patents, royalties, and licenses
that result from the research with the need to assure that such r?search is
not unreasonably hindered by th.ose intellectual propert)' agreements.
(b) Oversight of Awa.rds. The authority shall establish standards for
the oversight ofill incentives including, but not limited to, grants, loans,
loan guarantees, credits, and buydowns made under this Act to ensure
compliance with all applicable terms and requirements. The standarcls
shall include periodic reporting, includi.ng fnancial and perfotmance
audits, by all recipients of incentives, excluding individuals who receive
buydowns, and shall permit the authority to discontinuefunding or to take
other action to ensure the purposes ofthis Act are being met.
26056. Standards for Gasoline and Diesel Use Reduction Account
Expenditures.
(a) The authority shall make expenditures pursuant to Section 26050
consistent with the goal of reducing the rate of petroleum consumption
in California by 25 percent within l0 years of the date of the quthority's
adoption of an initial strategic plan pursuant to this section, as compared
with California's current sixteen billion (16,000,000,000) gallon annual
rate of consumption, or roughly four billion (4,000,000,000) gallons of
petroleum transportation fuels per year by 2017, and causing permanent
and long-term reductions inpetroleum coisumption in California. The total
reduction goal shall be ten billion (10,000,000,000) gallons ofpetroleum
transportation fuels over 10 years. Prior to making any expenditure
pursuont to Section 26050, the authority shall adopt'a strategic plan
pursuant to subdivision (a) ofsection 26045, asfollows:
( I ) Within nine months of the effec t ive date of thi s Act, the authority,
in consultati.on with the California Air Resources Board, the California
Energy Commission, and the Public Utilities Commission, shall adopt
an Integrated Resource Plan for petroleum reduction in California. The
Integrdted Resource Plan shall be based on the best estimates of the
potentialfor unsubsidized market acceptance of technologies, products, or
services within 10 years of the date ofthe adoption of the initial Integrated
Resource PIan.
(2) The Integrated Resource Plan shall outline a strategy for the
allocation of funds to programs with the highest return opportunities,
using thefinancing powers provideQ to the authority by this division. The
Integrated Resource Plan shall maxiinize the petroleum usereductionwhile
considering the greenhouse gas reduction benefts of clean alternative
fuels and clean alternative fuel vehicles. The Integrated Resource Plan
shall also evaluate the expenditure of funds for clean alternative fuel
vehicles and shall consider allocating funds necessaly to balance the
deployment of clean alternative fuel'vehicles with accessibilit)) to clean
alternative fuels.
(3) The Integrated Resource Plan shall be developed with inputfrom
interested parties at scheduled public hearings ofthe authority under the
leadership of the Chief Executive Offcer of the authority, The authority
shall update the plan every two years and shall amend the plan to ensure
that it remains consistent with California Air Resources Board regulations
and consistent with the priorities and go:als of this Act.
(4) The Integrated Resource Plan shall contdin an assessment
of the potential of expenditures to meet ol exceed the goal of redilcing
petroleum consumption by ten billion (10,000,000,000) gallons over 10
years. Expenditures shall only be made for items consistent with meeting
or exceeding this goal. Expenditures shall also be consistent with, and
shall receive priority according to their potential to meet or exceed,
the emissions targets and goals set forth in Executive Order 5-3.05, as
published, and the emissions targets and goals set forth in Sections 1900,
1961, and 1961.1 ofTitle 13 ofthe California Code ofRegulations, in effect
as ofDecember 1, 2005. lfthese emissions targets and goals are replaced
by more stringent emissions targets and goals prior to dissolution ofthe
authority, the more stringent emissions Targets and goals shall be used to
establish priority for all subsequent expenditures under Sectibn 26050'
The full fuel-cycle assessment should be applied to all fuels, including
electricity as a transportation fuel. Dffirent methods of producing a
specffic fuel may have dffirent greenhouse gas emission reductions, and
the various methods should be duly considered in evaluating the full fuel-
cyclefor thatfuel. In the case oftwo vehicles with equivalentfullfuel-cycle
greenhouse gas emissions, priority shall be given to that which involves
the lowest cost.to the account.
(5) All expenditures made by the authority under this section shall
be consistent with the strategy outlined in the Integrated Resource PIan.
(b) Att expenditures on clean alternative fuel infrastructure and
electric vehicle chargers shall be restricted to those that support clean
alternative fuel vehicles that are available for sale and are producible in
substantial volumes.
(c) Expenditures for buydowns shall be limited to 25 percent of the
total amount deposiied in the Gasoline and Diesel Use Reduction Account,
unless the authority determines, by a twoihirds vote, that additional
expenditures are warranted in otder to mosl cost-effectively achieve the
goals ofthis Acl.
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(PROPOSITION 87 CONTINUED)* * * TEXT OF PROPOSED LAWS
(d) All expenditures made pursuant to Section 26050 shall be based
upon a competitive selection process, established pursuant to subdivision
(b) of Section 26045. Pursuant to the competitive selection process, the
authority shall, at a minimum:
(l) Eniure that the expenditure does not supplant existing state
fundingfor the redaction ofpetroleum consumption in California.
.(2) Evaluate the quality of the proposal for funding, including the
availability of private matching fundi, and the potential for achieving
signifcant results, including the level of petroleum reduction within
the state that is expected to be achieved as a result of the expenditure.
Proposals with signirtcant business validation and leverage from pfivate
equity funiling or subordinate debt funding from private sources will be
prioritized and given preference to establish lhe market viability of the
proposals.
(3) Evaluate the unit cost of peftoleltm reduction of ihe proposal
and the potential of the proposal to achieve unsubsidized market
campetitiveness and pervasive ecceptance, adjusted for the risk and time
value ofmoney.
(4) Evaluate the probability that the proposal will result. in a
sustained, unsubsidized market-competitive technology or technologies
that can achieve substantial consumer or business acceptance beyond the
subsidy or incentive period.
(5) Ensure that the expenditure is consistent with the two-year and
ten-year strategic plans adopted by the authority.
26057. Standards.for Research and Innovation Acceleration Account
Expenditures.
(a) The authbrity shall make expenditures pursuant to Section
26051 consistent with the goal of improving the economic viability, and
accelerating the commercialization, of renewable energy technologies,
such as solar, gbothermaL wind' and wave technologies, and energy
efficiency technologies in buildings, equipment, electricity generation,
and vehiclbs. Prior to,making any expenditures pursuant to Section 26051,
the authority shall adopt a strategic plan pursuont to subdivision (a) of
t*'"iu;7/,t;ronno,rur",
made pursuant to section 2605i shail be based
upon a competitive selection process, estabQshed pursuant to subdivision
(b) of Section 26045. Pursuant to the comietitive selection process, the
authority shall, at a minimum:
(1) Ensure that the expenditure is for research in renewable energy
!echnologies or energy fficiency techniologies.
(2) Ensure that the expenditure does not supplanr existing state
funding for research in renewable energy technologies or energy
efficiency technologies and that the authority coordinates its expenditures
with other state agencies, including the Public Interest Energy Research,
Demonstration, and Development Program, established by Chapter
7.1 (commencing with Section 25620) of Division 15. to maximize the
effectiveness ofthe expenditures and to avoid duplication ofeffort.
(3) Evaluate the quality of the research proposal, the potential
for achieving signifcant.results, including consideration of how the
expenditure will aid or result in the commercialization, or signifcant
and permanent deployment, of renewable energy technologies or energy
effciency technologies in California, and the timeframefor achieving that
goal.
(4) Give funding pfiority lo resealch proposals that utilize more
abundant renewable energy resources and that offer the greatest potential
for technological breakthroughs. Priority shall additionally be given to
research proposals that offer the greatest potential to meet or exceed the
goals setforth in: (a) Executive Order 5-3-05; (b) Sections 1900, 1961,
and 1961.1 ofTitle 13 ofthe California Code ofRegulations, in effect as of
.December l, 2005; or (c) Article I6 (commencingwith Section 399.11) of
Chapter 2.j ofPart I ofDivision I ofthe Public Utilities Code, in effect as
ofDecember 1, 2005. Research proposals that offer the greatest potential
to meet or exceed the goals setforth in subdivisions (a) to (c), inclusive,
shall receive the highest priority for funding, followetl by those research
proposals that offer the greatest potential to meet or exceed the targets and
goals setforth in two ofsubdivisions (a) tq (c), inclusive,followed by those
proposals that offer the greatest potential to meet or exceed the targets and
goals setforth in one ofsubdivisions (a) to (c), inclusive.
(5) Ensure that allfunds to support buildings and permanentfacilities
pursuant to Section 26051 are committed during thefrst two years ofthe
program, and that such expenditures, in the aggregate, do not exceed
' one hundred million dollars ($100,000,q0q. The authority shall require
all recipients offunding for facilities to pay all workers employed on the
construction or modification of the facility the general prevailing rate of
per diem wages for work of a similar character in the locality in which
work on.the facility is performed and not less than the general prevailing
rate ofper diem wages for holiday and overtime workfxed as provided in
Chapter I (commencing with Section 1720) of Part 7 of Division 2 of the
Labor Code.
(6) Ensure that the expencliture is consistent with the two-year and
ten-year strategic plans adopted by the authority.
26058. Standards for Comnercialization Acceleration Account
Expenditures.
(a) The authority shall make expenditures pursuant to Section
26052 consistent with the goal'of accelerating the commercialization of
eccinomically viable, innovative renewable energy technologies, energy
fficiency technologies, clean alternative fuels, and clean alternative
fuel vehicles in California within l0 years of the effective date of this Act,
by providing funding.for the one-Iime or start-up costs of introducing
renewable energy technologies, energy fficiency technologies, clean
alternative fuels, and clean alternative fuel vehicles including, but not
Iimited to, the certifcation ofproducts, vehicles, and distribution systems,
and for other costs that will accelerate the production and distribution
ofcommercially viable products and technologies to the market. Prior to
qxoking any expenditures pursuant to Section 26052, the authority shall
adopt a strategic plan pursuant to subdivision (a) ofsection 25045.
(b) All expenditures made pursuant to Section 26052 shall be based
upon a competitive selectioil process, established pursuant to subdivision
(b) of Section 26045. Pursuant to the competitive selection process, the
authority shall, at a minimum:
(1) Ensure that the expenditur; will advance the gdal of
commercializing econbmically viable renewable energy technologies,
energy fficiency technologies, clean alternativefu.els, or clean alternative
fuel vehicles in California.
(2) Evaluate the potential thor the expenditure will achieve
significant results, including how the expenditure will aid or result in
bringing commeycially viable renewable energy technologies, energy
ffibiency technologies, clean alternative fuels, or clean alternative.fuel
vehicles to the market in Califurnia, within a reasonable time frame from
the date of the expenditure.
(3) Establish that it is reasonably likely that a signifcant share of
the fnished technology or product for which the funds are allocated will
be available to, or will be deployed in, Califuritia or that a signif.cant
share of all components used in the fnished technology or product will be
manufactured in Caldorn ia.
(4) Evaluate the cost, adjusted for time value, of energy developed
or saved by the proposal relative to its ability to advance the objectives of
, lhe Commercialization Acceleration Accounl.
(5) Evaluate the probability that the proposal will result in a
sustained, unsubsidized market-competitive technology or technologies
that can achieve substantial consumer or business acceptance.
(6) Ensure that the expenditure is consistent with the two-year and
ten-yea.r strategic plans adopted by the authority
(c) All expenditures from the Commercialization Acceleration
Account require the recipient of the expenditure to provide matching
funds equal to at least 50 percent of the expenditure, except that in the
case of loans and loan guarantees, the recipient may provide equity
or subordinated debt equal to at least 25 percent of the loan or loan
guarantee. This constraint will not be applicable to the distribution for
a clean alternative fuel equal to approximately the frst t5 percent of the.
distribution of the gasoline distribittion system.
(d) Any funds that remain in the account'after 10 years shall be
divided eEtally between the Gasoline and Diesel (Jse Reduction Account
and the Research and Innovation Acceleration Account.
.' 26A59. Standards for Vocational Training Account Expenditures.
(a) The authority shall make expenditures pursuant to Section 26053
consistent with the goal of trainiig students to workwith renewable energy
technologies, such as solar, geothermal, wind, and wove technologies,
or energy fficiency technologies, in buildings, equipment, electricity
generation, clean alternative fuels, and clean alternative fuel vehicles.
Prior to making any expenditures pursttant to Section 26053, the authority
shall adopt a strategic plan.pursuant to subdivision (a) of Section 26045.
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TEXT OF PROPOSED IAWS * * *
(b) All expenditures made pursuant to Section 26053 shall be based
upon a competitive selection process, established pursttant to subdivision
(b) of Section 26045. Pursuant to the competitive selection process, the
authority shall, at a minimum:
(l) Ensure that the expenditure is for training in renewable energy
technologies, energy fficiency technologies, clean alternative fuels, or
clean alternative fuel vehicles.
(2) Ensure that the expeniliture does not supplant existing state
fundingfor training in renewable energy technologies, energy fficiency
technologies, clean alternative fuels, or clean alternative fuel vehicles.
. (3) Evaluate the quality ofthe program, the potentialfor achieving
signifcant results, including consideration of how the expenditure will aid
or result in training workers in renewable energy technologies, energy
fficiency technologies, clean alternative fuels, or clean alternative fuel
vehicles in Califurnia, and the timeframefor achieving that goal.
(4) Ensure that the expenditure is cansistent with the twoltear and
ten-year strategic plans adopted by the authority.
2 6060. Standards for Public Education and Administration Account
Expenditures.
(a) The authority shall make expenditures pursuant to Section 26054
consistint with the goal of bducating the public regarding the importance
of energy fficiency technologies, renewable energy technologies, and
full life-cycle petroleum reduction, and reporting on the progress of the
piogram, and of fficiently administering the authority.
(b) At least 28.5 percent of the funds in the Public Education and
Administration Account shall be expended for the purpoSe of public
education regarding funded technologies.
Article 5. Accountability
26061. (a) In addition to the report required by Section 26017, the
authority shall issue an annual report to the Governor, the Legislature,
and the public which sets forth its activities, its accomplishments, and
future program directions. Each annual report shall include, but not be
Iimited to, the following: the nttmber and dollar amounts of incentives
including, but not limited to, grants, loans, Ioan guarantees, credits, and
buydowns; the recipients ofincentives for the prior year; the authority's
administrative expenses; a summary of research findings, including
promising new research areas and technological innovations; and an
assessment ofthe relationship between the authority's award ofincentives
and the authority's strategic plan.
(b) The authority shall annudlly comnliision an independent
fnancial audit of its activities from a certified public accountant which
shall be provided to the Controller, who shall review the audit and annually
issue a public repor! ofthat review.
(c) There shall be a Citizens' Finan,cial Accountability Oversight
Committee chaired by the Controller. This committee shall review the
annualfinancial audit and the Cpntroller's report and evaluation ofthat
audit. The Controller, the Treasurer, the President pro Tempore of the
Senate, the Speaker ofthe Assembly, and the chairperson ofthe authority
shall each appoint a public member of,the committee. The committee shall
provide reconlmendations regarding the authority's finanpial practices and
performaice. The Controller shall provide staff support. The committee
shalt hold a public meeting, with appropriate notice,. and a formal public
comment period. The committee shall evaluate public comments and
include appropriate summaries in ils annual repoit.
SEC. 18. Part 21 (commencing with Section 42000) is added to
Division 2 ofthe Revenue and Taxation Code, to read:
. PART 21. CALIFORNIA ENERGY INDEPENDENCE FUND
ASSESSMENT LAW
42000. This part shall be known and may be cited as the "California
Energy Independence Fund Assessment Law."
42001. For purposes.of this part, the following definitions shall
apply:
(a) 'Authority" ueans the California Energy Alternatives Program
Authority, which is established in Division 16 (commencing with Section
26000) ofthe Public Resources Code.
. (b) "Barrel of oil" means 42 United States gallons or 231 cubic
inches per gallon computed at a temperature of.60 degrees Fahrenheit.
(c) "Board" means the State Board ofEqualizntion.
(d) "Consumer" means an individual,frm, partnership,association,
or corporation who buys for his, her, or its own use, or for the use of
another, but notfor resale.
(e) "First purchaser" means a p,erson ,ho purchases oil from a
producer.
(fl "Gross value" means the sale price at the mouth of the well for
oil, including any bonus, premium, or o:ther thing in value paidfor the oil.
Ifoil is exchangedfor somethingother than cash, or ifthere is no sale at
the time ofseverance, or ifthe relation between the buyer and the seller is
such that the consideration paid, if any, is not indicative of the true value
or market price, then the board shall determine the value of the oil subject
to the fee, based on the cash price paid to producers for like oil in the
vicinity of the well.
@ "Oil" means petroleum, or other crude oil, condensate, casing
head gasoline, or other mineral oil that is mined, produced, or withdrawn
from below the surface of the soil or water 'in this state.
(h) "Producer" means any person who takes oil from the earth or
water in this state in any manner; any personwho owns, controls, manages,
or leases any oil well in the eqrth or water of this state; any person who
produces or extrects in any manner any oil by taking it from the earth
or water in this state; any pelson who acquires the severed oil from a
person or agency exempt from pfoperty taxation under the constitution
or other laws of the United States or under the Constitution or other laws
of the State of Califtrnia; and any person who owns an interest,. including
a royalty interest, in oil or its value, whether the oil is produced by the
person owning the interest or by another on his or her behalf by lease,
contract, or other arrangement.
(i) "Production" means the total gross amount of oil produced,
.including the gross amount thereof'auributable to d royalty or other
interest.
Q) "Severed" or "severing" means the extraction or withdrawing
from below the surface ofthe earth or water of any oil, whether eVtraction
or withdrawal shall be by rlatural fiow, mechanical flow, forced flow,
pumping, or any other means employed to get the oil from below the
surface of the earth or water and shall include the withdrawing by any
means whatsoever of oil upon which the assessment has not been paid,
from any surface reservoir, natural or artificial, or from a water surface.
(k) " stripper well " means a well that has been certified by the board
as an oil well incapable ofproducing an average ofmore than ten barrels
of oil per day during the entire taxable month. Once a well has been
certffied as a stripper well, such stripper well shall remain certified as a
stripper well until the well produces an averdge ofmore than 10 barrels of
oil per day during an entire taxable month.
42002. Effective Jiznuary 1, 2007, and except as provided
for in Section 42007, there is hereby impoSed the Califtrnia Energy
Independence Fund Assessment upon the privilege of severing oil from
the earth or water in this state for sale, transport, consumption, storage,
proft, or use. The assessment shall be borne ratably by all persons within
the term "producer" as that term is defined in subdivision (h) of Section
42001. Thefee shall be applied to all portions ofthe gross value ofeach
barrel of oil severed as follows:
(a) One and one-halfpercent (1.5%o) ofthe gross value ofoilfrom
$10 to $25 per barrel.
(b) Three percent (3.0%) of the gross value of oil from S2 5.01 to $40
per barrel.
. (c) Four and one-half percent (4.5'%) of the gross value of oil from
540.01 lo $60 per barrel.
(d) Six percent (6.0%) of the gross value of oil from $60.01 per
barrel and aboue.
42003. Except as otherwise provided in this part, the assessment
shall be upon the entire production in this state, regardless of the place of
sale or to whom sold or by whom used, or the fact that the delivery may be
made to points outside ihe state
42004. (a) ProducerS or purchasers ofoil, or both, are authorized
and required to withhold from any payment due interested parties the
.proportionate amount of the assessment due.
ft) fhe assessment imposed by this part is the primary liability of
168 I Text ol Proposed laws * * *
*'* * TEX' O F PROPOSED LAWS
(PROPOS ITION 87 CONTINUED)
pur:chaser' Faiture of the pt'''ia"i'i'l''- p'"i 'he
assessment does not retieve '" "ry:';i;;;: ii';/ 4:i;ii:i!i!"i'the p'o"e"di'gs of anv such b'
the first purchaser o, o iuirnqurri purchaser fro*,'iili"il'i'i-'i^ "d'h::;i;;;;:""vi"ii''"tia"ainrheptroceedingsofanvsuchbondsasa
ossessenrent. A purchaser ol oil pt.ocluced,irl ,ni,, ,1i,"^.1:."ii it)liiIy" ni*'"tf "o"no''' wiil the
'holders of such bonds'
i'"::::'#f;'r3;'::'":"':;;i:'"';;';;it';";;;;;;; '';;;r"";i';';;;;" ifi "?;'d"::ii;J*i:l'):'1his
Act must be nred within six
(c)Theassessmentiniposetlbythisparrs'hallnotbepasse.donlomonthsoltheelfeitivedateofthisAct'
"orru^r$ through'n'r"''"['u)i ii''oiil"go'otin, ' or
'diesil
ftrel' At the sEC' 20 AMENDMENT'
'*'i,?,iqi,n"
",rl:,;r::.,:i)!':"::'!' ,,i:#in;;iir,:i^,tr/, ,",,j:i::lll*lff:l;;*,i"",illiili{1.#if,ilX'i,:"J:::ii:'"X:foii ,!,ii,l,'r',"rlfi!,;:::,i':,'::':;;:i;;';'";";;:;;'tiv ':ui'i nJ p'ice of oit' [i,il. i'gi'r""':::1"'jtJ:1,i'"'Je Governor'
{"r"i,i'r2"r, i,"iat'"t' . . ^ -r ^ sEC 21' sEVERABILITY'
42005. Theassessntertrimposedbythispart,shallbeinadditionto IfanyprovisionofthisAc.torrheaoolicationthereofloanypersonor
z:t:t1;i::';iiiiiiir:xii:!iwi;*rr*ir;* ;1T*;:;l**i4lffi;1*,;.",,'*,;*tUl*;;'.1t":'f':1ft
materiql, or ProPert)' sna'
reason of the pa;,r,"r, or,iiiir"r'r",1'ii,i,lrrhn', ro this parr' ;;#ii"T'"i iriir.lir"' una to trtit end'the provisions of rhis Act are
42006. Two or ntore producers lhdt ot'e .corporotions
and are severable'
commontyo*nndo,"on,|Jiui'iui)iii"l 'ndirectlv'asdefnedinSection sEC 22' coNFLlcrlNGINITlATlvES'
25105, by the sante ,r,r*i,'r,-init-ie'"considered as a.single producerfor i" in. "*"t rhat this measure and another initiative measure.or
?:#;*f;ji;: ,;:lji.,";i*;!;;;,ifi"? ^i,l,i"i;,essmen, n #lki1*ru":xrzu':tr#"*;,3tri,i'ff"",x li li'J':l';:
imposedpursuanttoth*paridiern'itopptyto,. Uur"*ii"Ji".,ionballot,theprovisionsoftheothermeasureormeasures
(a) oil ownect or p'rocluced bv uny politi|al su^b.division of the s'tate', :i'j'H#;io:u"ln *nhi..'*iirl ir'i. ,-'",.u,u,". ln the evenl that thiS
. inciurting that politicol
''u-ili'i'it''' pr:oprietary 'n)''l''of'oii
p'oau"a i;#;;il;' u g"utt' *tutt "i"in't"'i"t votes' the provisions o[
underanvurit,"oop"'oiiiJ'-o'otn'n'iooli'galreement'tn"iillt#ffiid;;;4inti'ti'"ntiittv'andtheprovisionsoftheother
(b) Oil proctucedby)'rtripp"r*rtt ininyntonthinwhichlheaverag4 measureshallbenull andvoid'
value ofoil is less than si6 p""i""'t' Ifin any month the average value of
oil is $50.01 o' *o'" u'i'i[)"i'""'t'':iip"' ''"il'th'oll
be subiecr to afee in
the amount of 3 p"'"n' Jf in"- g' o" 'Li'" of oi,l above $50'01'
42008' The assessmen-t imposed by this part shall be due qnd
88
puyabtetothebo"'.il"''ii'Jlii'ii''a"i'lri"t'""'i'i'ii#'oii'i|"i'*'' PROPOSITION 88
adntinistering this part and may presc ribe t,he,man ner i'n which all payments This initiative measure^is submitted to the people in accordance wilh
' ore macle to the state untlir tthli'part' and tho bsorcl msv nreso'ibe the fornts
anct reporting ,"r,u."i",',,'-o1-ni,l",i,o,y ," ,*4"1,!,fii'"';;:;;l;";;, tn" o'iliiitL"";i;;;ffi;f A'tl'i" rr ortr'" califoinia constitution'
,::/;|l':,,;,!:i,';,:,;f:,:i":;;#:f:i'';,;i::2f::,i"i:i,i!';i*i"l{6;, ', "ilxt:.::l*:1il:l?ili{F:*Jn"'Xhf:':f,i3:Hff::i3::"1'ti"'pi""oit*'g *i,0", i,,i"""i3'''r Lyi f" y'*1"-:l:,'::;;Tff:!;"",::; ilx3Xtf,;1',";;'ffi*;l*[T*tr;:t"'::i:ll*Wffinronosed"ii"i':a *'y implov auditors' investisators' "nc'nfn')i-i)',i^:";7'rf;'';;;.,";.
b ensase i' oll octi'i'tii';;";;t;;;; i' the itplementation of this part'
'ROPoSED LAw
inctuding to veriJv '",i'ii'i "'ii,,ii"liigo'' 'ni affiirs of producers ond
nurchasers to d"t"'n'ii"'*ii'i''' ii" "tr""^n'i"i''"piiia
by this part " 'utrloN
l Title
'rropertv reportect and')aid tn att p.roceedin*"-':i,"{:* ;;';";;;;""'; ' fi:T}i* Xl'l o' known and mav be cited as the Classroom
;;';;;i;;!"ii{i[12:,:::;';:l;::"':;:;":,::::!":.:"],hi, p'" "'t ,^'v, ""'T{f;;*,:T:};:i"
prescribe, oaor,. oni'!rpi;"';iri;;-ori'rrgrtotio*ri inclucting' but. nor sEc' z' Findings and Declaration ofPurpose
limited to, tnn poyrr"ri 'oi ii.nterest, the impo;itbn ;i i)'t'i'i"i' tna o'y ttre leople of the State of California find and declare that:
other action permitted by sections 6a5r ro 7r.76..i'n"iurirn. o, sections. (a) carirorniastudenrsarefallingbehind'rankingamongthebottom
3840t to 38s0t, inctusivl, whichever o'" n.'on oo'i'''iii''"'")i'*''"a' 'i* 'o';'"; ;;"ding and'math"'in'ir'i-nutlon;t five biggest states' only
by the board, ,ao,r,g"iik""ffi"'tio,n, oa,,ini,iioiii,,,i,ii u.,fo,",,,n,' ui';t;'il;;;:.;.. u"r"* '".'.g" "' every national assessment of
cottectetl pursua,""i;i";;;;:;;'i"ti a" a"p"'i'"a'i'-th' cot6o"io E"'gv t"rti')!*""i-it tuuttd' in part' bv inadequ'ate' resources for public
section 26049 of the Pubtic RJs;otrrces code' the aurhority shall reimburse ;;"i;i:i;;i; it""rttoni"uily ltr"* ir''! national 'aYera'c:'
even though
theboardJbr,"p",,;:i;;,;;;;i"niieadministr?,;:::;fti';f;:i'-:ii*: buriro.niu students u,. "*p."iJa"* '"'r'o*" orthe highest academic
assessment i*p^ua ii tii' part The board s.hall transfer monevs recelvea standards in the country'
from .the .aforem"r,,Jrii
rhi,lirr'i ,t " cotyorri"'El)'iv" t'i"penctence (c) calirornia's *gl"ii'J;X.,?,:;"1#:ffi:lii""t"ilf on a wetl-
Fttnd at leqst once per calendar tnonth'
(b) rhis part shail becotne inoperative after the authorirv hcts. "":"1;ixTrH],:":tt1!,t;;e srudenl achievement.. new investment is
nisection 260qs oJiie pubtic Resource,_coa, on|-i1,,o,) oitt ird"bt"dn"" lT,::l^ff |fiHrJ'ff;il;tU, ;;d f-uia" r""ill:i::,r"'high-qualitv
issociated ,+,ith rhe crean Atternative t,",ry )'1,7,|,,ti'ii,[i",i,'"'p", ';i;i:1fil[fl:;:"::TitTft;;;;;;'.;tar and communirv invirvement'
interest' oncilla'V J)iS"'i'""' ancl othet costs of anv bonds issued
DursuanltoDiv,isioii6(conlm.en.cing"withs"",iizioioi"|ih,.publi,(e)Aparcelassessmentforpublicschoolswillraiseneededfundsfor
Resources Code. sec,ureiby a predge of the assess-^iruu"i"i aythis part.. ouo"]ri'u"iiJu"menr, while prorrrtrng property owners against runaway
has been poia o, pny^iri ;;r";&rir"riara for'l'",*i"r,'"i''L': ."'L"'"a it-"t':"#tl"ttv "ni*" *iit-'"n*tJl"'t"t"t'- Parcel assessments have
statute, tiat b,-*,i, opu"otru-",i! fl,!"{x,i,r,,l;!:;z:n:o',;':r'-.",t:: f:':l#,"fit*ix*fJt"1"orcut'r*niacommunities'and'thevare
'{,3ii,ifl'Ji;liitr'f;"';::;:i:;':: f"i':;;: ;;;;'"'ai "' i'n" obtigations * * * Text or proposed taws I 16e
TEXT OF PROPOSED rAws***
^_^,_ !l New funding for.public education must come with safeguardsagalnst waste and mismanagement. The entirety of the ClassroomLearning and Accounrabiritu r"unJ *iir i" ,"u.i..t i"t"ri*sighr and annualindependent audits. Annual audits will "".rrJifr"'.*,r'O.nn, goes intoclassrooms and studenr learning. ,rr"r" ii " """j;;;:i^ (g) The Legislarure is expr.essly prohibited fronfrom rhe Fund toiupptar,, ott.. iunaiig;;;""* #:rH:?r#:,::lcrrtrcat needs. This act snecifies *rt tf,. er"J^.fr"ii""i'U. used to pay
ilXT:?T::1ffi :l:ffi ,1.H.Jj"ir""a.*iii..."ri,in,lli_inurp"nurti.,,
.,, (h).Money from the Fund will be used to collect infbrmation thatIll :Irl:""^,he effectiveness or specinc-ed;;;;;i'programs andlnvestments. Schools, researchers, and other .g"""i._ .,'iff .U"=il;;;
;i;
:fflX,ffi::?: ri nk ber ween specifi c i nvestme"i;;;l;.];p;;, ;;;;ffi;;
(i) Homeownels 65 years. of age or older are fulty exempted from the
li:;f;*Tr*is act. Senior ciri,.i,rvil'""iu."u,j.""a by the creation
(j) This acr pavs lor,ilself. The Fund will improve educarion withor-itaffecting any state servir
General Fund. res or programs currently supported by the state
Therefore. the peoole ol the State ol California hereby adopt theClassroom Learning and Accountabif iiy-,q.t
- -"'"""
SEC. 3. Section 6_2 is added to Article IX ofthe Constitution oftheState ofCalifornia, to read:
SEC. 6.2. (d The.Classroont Learning and Accountability Funrtis hereby created ii the State n.easury io b,"'iZi'i",rrr,nr the purposesset fortk below and is continltonsly "pirriri"iii lar the support ofk i n d e r g a r t e n t h r o u g h I 2 t h g r a d " "
d;; o ;;; ri;: ; ;;;; ; "(b) Classroom Learning a,nd Accountoii htl runa, shail not be usetrto pav for administrative oirhead "r;;i-;;;'k';;;a Jbr the forowingeducational purposes only ;. (l) One hundred seventy_fve million dollars (5175,000,000) toreduce class sizes in kindergarten and grades I to 12, inclusive.(2) One hundred million dollars ($100,000,00;0) Jbr textbooks antlother.instructional materials approved b1, *e St'ii-Aoara of Education
ff r::::::::',":;':,':;,;';X:ci''ricur'lniTrim"'"i*i'*ai""aiit"'iii
(3) One hundrecl nzillion dollars ($100,000,000) to .enhance thet^*,! or/ security o1 pupitr,.teociJr, *'i ,iti"Tiii"ll.tttrougtt schootco.m m u y i t y po r i c i ng. ga ng- ri s k i n t e rven r i on,,ii "ir"n.;t a nd i n t ersess io n
;:::::,,:;::'"'r
and'devetopment' and'inoot-'"1*r,unitv viotence
(4) Eighrv-five million
^dollars t$g5,000.000) for academic successlacitity sranrs lo anv auatilyins ,"iii'iiiiri"","iriiin, ,o, not receivedfunding from rhe procied,"ir ir*,".e"i,it';;t,;;;,';, bond for schoorconstruction or modernization. A schlool airrri"iluJirirg an academicsuccess facility grant shall not be-"tigiOi" fo;lu'riir'[jro* tl," pro"""a, o1a state generar obrisarion bond for lchoot ";rr;;;;ii;;'", ntodernizationuntess the tau, authorizins ,n".i.ra ,ra-"iirrr";';;;;.," oJ.the peopteexpressly provides that eligibiliry -'tq v! q t
(5 ) Te n m i I ! i o n dot t a rs.
^(
S.l 0,000. 0 0 0 ) for a n i n t egra ted ! on gi r ud i n a Iteacher and pupir achievement da-ta system tha, pro,rii, a better means
?{.:::!y::t:, "e
efficiency and "n",,i,""2,'ii"i,i,iI\, o,"rrams andtnvestments.
(c) The amounts deposited. in the Classroom Learning anclAccountabitity Fund shalt be
.used .exclusi*i i;";;;';*poses set Jbrthin this section. All nortevs in the
.Clas,sroom t'.J"r:rtiri lia lccountabilityFund shall.be used ro sipplement qnd ilot supplanrfidera!, stare, or localJunds used.for educatioiit n'i,"tudi;;;-i;,*""iii"i"li,',!f
,i':J;i;7,2!li;,"::;:,:iX,,:,::;I:,:iii!:;olfces of education. pubtic
"nor,n.,l ,li)oir.'iri'iir"'"),r,nistrator thatmisuses funds appropriated ana ouo"ot"i lr)i,iri'il ,lti, ,n",ion.(d) Fu nds a pproD r i a t etl p u rsua n r. t o po ra graphs f i l-, " f : L in cl u sive,of subdivision (b) shait be anportioned dii"r,iy-,r'r"i))i di.stricts, countyffices of educarion. and nttht'ic c.h.ortnr r"hoo,i! oi'o'ilni,o,, nsis. IJsingvariabtes and dara thai ar" ,t1*,i.r".- ^""rii;i';.'';:r; audirabte, theLegislature shall weisht the oer_pupit otto"otionii oi"iutrtp, ai"g"r"ntiotpupir-tevet costs assiciatei witi iiniirir-s;,"i"'ziiri1lJ,r,,"nievement
170 I Text of proposed Laws * * *
standards based on disabilities, English profciency, or socioeconomicSlalus.a.r'9Jl'|\'.1!'U
(e) The allocation nffunds under subdivision (b) shatt be adjusted
i:,?;:!i,::,Ziroporrionli basi, ,, ,"7""i|'"|,,"i')ilJ,,,", received and
1f) None of rhe provisio.n,s of thk section shal! alter or aJfect anyright to equal ptotection providea"ny tni, Conr't'ir;;,;;;;.""
SEC. 4. Section 21.5 is added to Article XIII a of tire Constitutionofthe State ofCalifornia, to read:
SEC. 21.5. (a) An assessment offifty dottars ($50) shall be teviedon each real property parce!
.rhat.is ,Li i,ii**'tii^iirir, 1*, propertytaxation pursuont ro rhis A,icle. rn" orr"irlr"ln,'rnii i'"i,,*,"0 anntnllyat the same time and in thb sqrns ms477sr as the ad vatoien property tax.(b) A parcet shall be exempt from the assessment described in.thissection if the owner of the ot
for the homeown"r'r'
"*u^]!,"^"..1
l!l ieside: o.n.the parcel'-(2) it "i;gi;i;"A,ti"t;,i;ii.';;'iiii
,ii,',:i'1i"! rT!:; ;;ti::';'; !!l :! :;rZ::'::,,;{'; : : : ;:1" ::i i# :;:'! : "t:
o o i' a p
"
n o n
"'"
i i'7,
"
f^ i, a
"7o "
a t v:, n "(c) For purposes of this section, ,parcel,,
means any unit of.realproper4) in the State that receives o ,iporot" ,rr"titt j,, ,i,*it"ir""i)properry taxes. Any properry that is orherwise ex"^),yo^, or on which islevied, no ad valorem n)r,n"i"ii""t iii"i;;;{r'if;':!"';::',':,;:il:::'o,tt atso be exempt:fro,lt
(d) Each fiscal vear, ,the reventte generated by the assessmentd e s c r i
)ed ^i 1
t h rc s e.c t i i n s h a t t be
" "
i
"
r i"i r i Z' rT i iilVar r e d a s .fo u ows ;(r) tvo more than -two tenths of one percent (.00,2j shail beappropriated ro.countiesfor the prrp.r"'rfd;fr;;n)[ the costs incurred inrmplqmenting t his secti on.
",,o rtt/o:li"'I::L:::""o" to offset anv decrease.in state personal
/: n/ y: :i; i ii;x ;;r : ;:: : :,;: ;';i,i:^, :::;:;!,i;r: ril:;:n
(3) After the rransfer .of,the amounts calculated in paragraphs(l) and (2), rhe remqindLr, iictuding "ri,"rr"r*i-"irred thereon, shallbe transferred to the Ctassro?,,: ?i;;;;;';;; )lccountabitrty Fundesrabtished by Section 6.2 ofArriclc IX.
SEC. 5. Section 14 is added to Article XIII B of the Constitution ofthe State ofCalifornia, to read: --. ^ " - '
sEC r4. (a) 'Appro.priations subject ro Iimitqtion., of each entiryoJ government shail not include apprip;;"";";,;;';i'r"renue Ji"om rhec I a s s roo m Le a rn i n s o n d A
" "o
u nioiiti, i f:r, i |ri" ii, ri ed by sec ti o n 6. 2oJ Articte IX. No adjustnent.in the "p;r;;;;;;";;'i,*,u o1 oon entity o.fgovernment shall be reauiisj pu.o*ii n s""iio""i )'r') r"ruu,yrevenue
2i : :, i::;; ; :;', # oo
r a p p r o) r i a t e i r,'.,i7 ij i,i,) J o, k o, n i, g o, a
.,.^..(b) Forp,urposesofthisarticle,,,proceedsoftaxes,,sha!lnotinclude
the revenues derived from,nn u.*", ii,porii';;ir:;;;;, Section 21.5 ofArticte xt tr A. but shitt inctude.,h,* ,;;;;;;{;;:::;;) in paragraph 12)of subdivision (d) of gection 2I.s o.f Atti.cte'i;r;;"."""'"
SEC. 6. Section g_3 is added to Article XVI of the Constitution ofthe State ofCalifornia, to read:
SgC 8.J. (a) Lyith the,.ex-ception oJ.the revenue described inparagraph /2) ofsubdivision 1d) ofSiction ii i )itir,tiil xtII A. revenuesderivedfrom thi taxes imoo.s,e:iLisitrr)r.i,uiiilfJ"*,,, o sha, not bedeemed to be "Genera! Find
to Article xtIt B" as ,n", o[i]l!litwhichmavbeappropriatedpursuant
1tt olsect:ion {n,,",ii"ii in'!,iiii.:",:!"';!:;if:"f"!"1,,1,,:[:,:T;,:;;
capita General Fund revenu'es.,' ^ ,n* *r'*' i, 'rr"a*i,
paragraph. (3) ofsubdivision (b) and in subdivision f"l "f i""lr:i.r;:" "' ,
(b) Funds approoria tef, p.y1sla(tai to Section 6.2 ofArticle IX shall notbe deemed to be pa)t ol',totara!ro"r,i"r, ,"o"r'"liiolairiliii, ona roinmunitycottege dislricts from Genera!. Frrd pr;;;;;;';;";;;), appropriatedpursuant to Article XIII B" as that phrase i, ,r"ai, ii*sraphs (2) and(3) ofsubdivision (b) ofsection 8.
- '- "-'4 tt3 Putu
!89 Z Section 14003 is added ro the Education Code, to read:14003. No monevs distributed_front the Classroom Learning andAc c o un t a b i t i t y Fu n d s i a I t h e
^
t-1c t u di d t, ;;i
"
;r ;;; ; ;, n tt app o r t i o n i n gfunds as provittect in Seotion zssa, dsit, ,iioaii|'ofr.T|or rnott
^on"y,
(PROPOSITION 88 CONTINUED)* * * TEXr OF PROPOSED LAWS
distributed from the Classroom Learning snd Accountability Fund be
included in a school district's expenditures pursuant to Section 33128.
With the exception offunds for academic success facility grants described
in Section 52057.1, the Controller shall distribute the revenues in the
Classroom Learning and Accountability Fund at least twice during the
fscal year.
_ SEC. 8. Sgction 41020.4 is added to the Education Code, to read:
41020.4. Each fscal year, every school district shall provide for
an pnnual independent audit of the moneys received from the Classroom
Learning and Accountability ntnd. The audit may be prepared as part of
any annual audit already required, but it shall show how moneys received
from the Classroom Learning and Accountability Fund were spent by
category and program. The audit shall be reviewed by the applicable
county superintendent of schools and the Superintendent of Public
Instrttction who shall, along with the school distict, post the oudit reports
on their web sites.
SEC. 9. Section 52057.1 is added to the Education Code, to read:
52057.1. (a) h is the intent of this'section that J'acility grants for
school districts be directed towards all eligible schools, including charter.
schools. Therdfore, funds for academii succqss facility grants appropriated
pursuant to paragraph (4) of subdivision (b) of Section 6.2 of Article IX
ofthe California Constitution shall be apportionbd directly to qualifying
school districts as defned by this section.
(b) For purposesif this section, the following defnitions shall apply :
(1) A "qua.lifying school district" is an academically successful
eligible charter school or a school district wilh one or more academically
successfu.l schools other than eligible charter schools. Neither a school
district that is formed pursuant to Chapters 3 (commencing with
Section 35500) or Chapter 4 (commencing with Section 35700) ofPart 21,
and whose former districts received funding from the proceeds of a state
general obligation bond for school construction oi modernization, nor a
county offce ofeducation is a "qualifying school district."
(2) An "academically successful school " is a school ranked in deciles
6 to 10, inclusive, on the Academic Performance Index when compared to
similar schools as reportedfor the prior academic ydar by the State Board
of Education.
(3) An "eligible charter school" is a charter school operated and
governed by or as a nonproft public benefit corporation, formed and
organized pursuant to the applicable nonprofit public beneft corporation
law, where the majority of the certifcated teachers at the school are
employees of the nonproft corporation.
(c) Academic success facility grants shall be distributed to qualifying
school'districts at.the time of the sebond principal apportionment in the
form of general purpose funding. Subject to subdivision (d), academic
success facility grants shall be fve hundred dollars ($500) per pupil
and shall be awarded on a per-pupil basis for each pupil enrolled in
an academically successful school, provided, however, that pupils in
ccademically successful eligible charter schoiols shall not be counted
in calculating the amount of any academic success facility grant that is
distributed to a school district
(d) Notwithstanding subdivision (c), tf ot the time of the second
principal apportionment there are insuffcient moneys in that portion ofthe
Classroom Learning and Accountability Fund described by paragraph (4)
ofsubdivision (6) ofSection'6.2 ofArticle IX ofthe California Constitution
to providefor the per-pupil allocation specifed in subdivision (c), the per-
pupil allocation shall be adjusted.on a proporti.onal basis to ensure that
alll qualifying school districts receive an academic success facility grant in
an equal amounl per pupil.
(e) Any moneys remaining in that portion of the Classroom Learning
and Accountability Fund described by paragraph (4) ofsubdivision (b) of
Section 6.2 ofArticle IX ofthe California Constitution after apportionment
offunds for acailemic success facility grants as required by this section
ihall reinain in the Classroom L€ayning and Accountability Fund dnd shall
. be available for distibution to qualfying school districts in the following
year. "
SEC. 10. Section 60901 is added to the Educaticin Code, to read:
60901. Each school district shall participste in the collection and
reporting bfdata necessary.for the creation and maintenance ofthe state's
integrated longitudinal teaiher and pupil data system as defned by the
Legislature and described in paragraph (5).ofsubdivision (b) ofSection
6.2 of Article IX of the Califurnia Constitution.
SEC. ll. Section 13340 ofthe Government Code is amended to
read:
13340. (a) Except as provided in subdivision (b), on and after
July l, 2007, no moneys in any fund that, by any statute other than a Budget
Act, are continuously appropriated without regard to fiscal years, may be
encumbered unless the Legislature, by statute, specifies that the moneys in
the fund are appropriated for encumbrance.
(b) Subdivision (a) does not apply to any ofthe following:
(1) The scheduled disbursement of any local sales and use tax
proceeds to an entity oflocal government pursuant to Part 1.5,(commencing
with Section 7200) ofDivision 2 ofthe Revenue and Taxation Code.
(2) The scheduled disbursement of any transactions and use tax
proceeds to an entity oflocal government pursuant to Part 1.6 (commencing
with Section 7251) ofDivision 2 ofthe Revenue and Taxation Code.
. (3) The scheduled disbursement of any funds by a state or local
agency or department that issues bonds and administers related programs
for which funds are continuously appropriated as ofJune 30,2007.
(4) Moneys that are deposited in proprietary or fiduciary funds ofthe
California State University and that are continuously appropriated without
regard to fiscal years.
(5) The scheduled disbursement of any mdtor vehicle license fee
revenues to an entity of local governmont pursuant to the Vehicle License
Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the
Revenue and Taxation Code).
(6) Moneys that are deposited in the Classroom Learning and
o"*"{#lrill.o!f,l",uu,tty
The provisions ofthis measure arc severable. Ifany provisiori ofthis
measure or its application is held invalid, tfat invalidity shall not affect
other provisions or applications that can be given effect without the invalid
provision oi application.
SEC. 13. Amendment
This act shall be broadly construed to accomplish its purposes.
Any of the statutory provisions of this acf may be amended by a bill that
complies with the single-subject rule expressed in Section 9 ofArticle IV
ofthe California Cbnstitution, and that is passed by a two-thirds vote of
the Legislature and signed by the Governor, so long as the amendments are
consistent ivith and further the intent of this act.
SEC. 14. Effective Date
This initiative shall go into effect on July 1,2007.
PROPOSITION 89
This initiative measure is submitted to the people in accordance with
the provisions ofSection 8 ofArticle II ofthe California Constitution.
This initiative measure amends, repeals, and adds sections to the
Elections Code, the Government Code, and the Revenue and Taxation
Code; therefore, existing provisions proposed to be deleted are printbd
in sfutype and new provisions proposed to be added are printed in
italic type to indicate that they are new.
PROPOSED LAW
CALIFORNIA NURSES CLEAN MONEY AND FAIR.
ELECTIONS ACT OF 2006
SECTION l. Chapter 12 (commencing with Section 91015) is added
to Title 9 of the Government Code, to read:
Cntprrn 12. C,turonuu CtttN Mouev AND FAIR
EucuoNs Acr oF 2006
Article L General
91015. This chapter shall be known and may be.cited as the
California Clean Money and Fair Elections Act of 2006.
* * *Text of Proposed laws I 171
TEXT OF PROPOSED IAWS * * *
91017. The people fnd and declare all of the following:
(a) The constitutional system ofpopular governance ofthe State of
California is in serious jeopardy. The health of the state's democracy has
been undermined by the state's cantpaignfnance rules. Current regulation
of campaign finance practices in Califurnia is insfficient. Nearly
60 percent ofCalifornians have expressed their concern that California's
campaignfinance system needs major changes.
(b) fhe increasing costs of political campaigns have forced
candidates to raise a larger percentage of their campaign funds from
special interests that have a specific fnancial or commercial stake in the
oulcome of the elect ions.
(c) Unlimited corporate-funded election-related spending and
unlimited contributions to ballot measure and general purpose committees
controlled by California elected fficials and candidates are leading to
corruption, or the appearance ofcorruption, of the election process, have
produced corrosive and distorting effects on the electoral process, and
have cr'eated a loss of public confdence in the fairness of the electoral
process.
(d) Corruption and the appearance ofcorruption is a major problem
in California politics.
Large campaign.contributors and spenders are able to buy access
to California's elected ofricials, thereby unduly infuencing the legislative
and executive agenda and policy choices. At the very least, there is a
troublesome appearance of corruption when, for example; the Governor
sponsors a $500,000 per plate dinner with bond traders to raise funds
supporting a bond-related ballot measure. Californians fear that in some
instances large contributions are given to secure a political quid pro quo
from current and potential offceholders.
(e) The current campaign fnance system burdens candidates with
the incessant rigors offundraising and thus decreases the time available
to carry out their public responsibilities.
fl The current campaignfnance system dintinishes thefree speech
rights ofa majority ofvoters and candidates whose voices are drowned out
by corporations with unlimitedfunds to expendfor monopolizing the arena
of paid political communications to further their own private commercial
interests.
(g) The current campaignfnance system fuels the public perception
ofcorruption at worst and confiict ofinterest at best and undermines public
conficlence in the democratic process cind democratic institutions.
ft) fhe ever-increasing costs ofpolitical campaigns in cornpetitive
racesforce most candidates to raise larger and larger percentages oftheir
campaignfunds from interest groups that have a specifcfnancial stake in
the outcome of the elections and in matters be-fore our state government.
(i) Existing term limits place a greqter demand on fundraising.for
the next election euenfor elected fficials in safe seats.
(j) The rapidly increasing amounts of independent expenditures
point to a growing trend of special interest groups to fund independent
expenditures in an effort to skirt the contribution laws.
(k) The cutent campaign finance system undennines the First
Amendment right of voters and candidstes to be heaid in the political
process, undermines the First Amendment right of voters to hear all
candidates' speech, and undermines the core First Amendment value of
open and robust debate in the political process.
(l fhe number of candidates and issues attracting campaign
contributions varies widely among candidate races. The costs in some
election races are minimal while others draw expenditures in excess
of one nillion dollars ($1,000,000). This act addresses the range of
competitive election races by providing smaller amounts of public funds
in noncontpetitive races and much larger amounts in competitive contests.
As a result, the act saves the taxpayers of California fiom unnecessarily
expe nd i ng I arge a mou n ts of p ublic fu nds.
(m) In states where the clean money antJ clean election laws have
'been enacted and used, election resttlts show that more individuals,
especially women and minorities, run as candidates; voter htrnout
increases and overall campaign costs decrease.
(n) The current campaignfnanae systent creates a danger ofactual
corruption by encottraging eiected fficials to take funds from private
interesti that are directly affected by governmental actions.
(o) Under the state's current campaign fnance rules, contributors
may secure that political quid pro quo by making unlimited contributions
to ballot measure and general purpose committees controlled, formallyor informally, by candidates and state elected fficials, More than
$84 million has poured into these committees sinpe 1990, much of it fi'om
large corporate contributors, froln those with irnportant business with the
state, andfrom wealthy contributors whosefnancial interests are affected
by slate decisions.
(p) Powetful corporate and commercial interests have transformed
initiative and referendttm campaigns into a new arena for gaining
contmbrcial advantage and exploiting business opportunities at the
expense of the public interest and welfare. Hundreds of millions of dollars
are spent by corporate business interests in the iniliative and referendum
process to advance private, self-interested business plans, deregulate
legal prolections preserving tlte public health and welfare, and disable
governmenlal institutions and programs essential to popular governance
in ihe interests of the people. Established by the voters in 191 I as a means
of curtailing the political infiuence of corporate interests, the initiative
process now primarily serves corporate and commercial interests.
(q) Candidate elections and ballot messure elections in California
are intertwined, not separate events. California state candidates,
fficeholders, and political parties often endorse, oppose, and actively
campaign for and against ballot measures, and use lhose measures as
part of an overall electoral strategy. Thus, the potential for candidate
corruption and the appearance ofcorruption exists in all ballot measure
campaigns in CaliJbrnia.
(r) Campaign-related spending by business corporctions is
especially corrupting because of its corrosive and distorting effects. The
immense aggregations of wealth that are accumulated with the help of the
corporate form have little or no correlation to the public's support for the
corporation's political ideas, and corporations should not be allowed to
exert an undue infuence on the outcome of candidate and ballot measure
elections. Nearly 80 percent ofCalifornians have complained that business
corporations have too much infiuence on candidate elections and ballot
initiatives.
(s) California's existing campaign fnaice rules that permit
unchecked corporate spending are also undermining the public's
confdence in the election process. A majority ofCalifornians believe that
campaign contributions arb having a negative effect on the public policy
made by state gffcials in Sacramento. Nearly 8 in 10 California voters say
that their state government is run by afew big interests, and 92 percent of
California voters believe the initiative process is controlled "some" or "a
lot" by special interests.
(t) Corporate spending in the election process exerts an undue
influence on the outcome of the vote, and-in the end-destroys the
confidencq of the people in the democratic process and in the integrity
of government. Corporate advocacy threatens imminently to undermine
democratic processes, thereby denigrating rather than serving First
Amendment interests. However, contributions or expenditures by certain
nonproft organizations do not present these same dangers.
(u) Of purticular concern are social science studies proving that
large spendin! by corporations in ballot measure campaigns is very
successful in blocking ballot measures that are otherwise popularly
supported by the voters.
(v) Limits on corporate election-related spending and on
contributions to candidate-controlled ballot measure committees do
not violate the First Amendntent. The Supreme Court has recognized
that restrictions on direc! corporate cbntributions and expenditures are
constitutional when necessary to preserve voter confdence in the election
process, to prevent candidale corruplion or the appearance ofcorrttption,
or to prevent the distorting effect of corporate campaign contributions
and expentlitures. The Suprene Court has also recently recognized that
corporate contributions are furthest from the core of political expression,
since corporations' First Amendment speech and association inlerests are
derived largely from those of their nrembers and of the public in receiving
information. Limits on direcl corporate contributions leave individual
fficers, entployees, and members of corporations free Io make their
own political contributions, and therefore deprive the public ol littte or
no ntaierial information. Thd same rationale applies lo reslrictions on
corporate pol it ical expenditures.
(w) Explrience in the federal election pro.cess regarding the
emergence of "sham issue advocacy" Ieads California voters to anticipate
172 I Text of Proposed Laws* * *
(PROPOSITION 89 CONTINUED)* * * TEXT OF PROPOSED LAWS
that corporations will attempt to circumveilt any new limits on corporate
express advocacy in candidate and ballot measure elections through the
use of compaign advertising that avoids the "magic words'' of express
advocacy. A bright-line "electioneering communications" provision is
therefore necessary to prevent corporations from exploiting a loophole in
the law that would allow unlimited corporate spending on election-related
campaign advertising.
(x) Califurnia's initiative process was established to enable
iudividial citizens to join together to act as lawntakers when elected
fficials are too beholden to corporate interests to take action on matters
ofpublic safety and necessity. Thus the iiitiative process was intended to
provide cilizens with a colleclive opportunily lo make lheir views known
and voices heard, so as to engage in self-governnt'ent, when the views of
cOrporate interests predominate in the Legisl'ature. Corporations.are not
humans; they are creatules ofthe state thot are licensed upon agleement
to corTtply with the norms of conduct imposed upon them, in exchange for
which they are accorded the right to do business in the state and numerous
other privileges
(y) Through the use of monelt, corporations .have come to exercise
enorntous influence, and often ouftight control, over the'actions of the
executive and legislative branches in Califurnia. Money from various
corporate interests has effectively parall,zed the Legislaturefrom enacting
laws that would protect the public. Similarly, through their use of their
fnancial resources, corporations now overwheltningly dominate the
initiative process, either to prevent citizens rt'om effectively exercising
their right to promote ballot initiatives, or to enact ldgi.slation that the
Legislature, paralyzed by competing special interests, will not enact.
Indeed, business corporations now routinely employ "cottnter initiatives"
designed not to pass the measures themselves; but to discourage voters
from supporting or even voting upon citizen-sponsored ballot measures
that the corporationi oppose. Fi4ally, elected fficials and candidates for
public ffice have begun to utilize the initiative process to both solici|jfunds
from corporations whose fnancial interests would be served by proposed'
initiative legislation, and to escape the more stringeil rulesrgoverning
contributions to candidates for public ffice.
91019. The people enact this chapter to accomplish the fallowing
purposes:
(a) To reduce the infiuence of large contributions on the.decisions-":ii;f ::;:#*i,!r* ^ a .maior.factor arfecting whether an
individual chooses to become a candidate.
(c) To provide a greater diversity qfcandidates to participate in the
electoral process.
. (d) Toreversetheescalaringcostofelectionsthat haveincreasedfar
beyond the rate of inflation.
(e) To permit candidates to pursue policy issues instead of being
preoccupied with fundraising and allow fficeholders to spend more time
carrying out their public duties.
(f) To diminish the danger of actual corruption and the public
perception of corruption and strengthen public confdence in the
,governmental and election processes.
@ To ensure that independent expenditures are net used to gvade
contriburion limits.
(h) To foster.ntore equal and meaningful participation in the
political process.
(i) To provide candidales who participate in rhe Clean Money
pro$ram with sfficient resources with which to communicate with voters.
\ 0 To increase the accountability of each elected fficial to the
constituents who elecl him or her, as opposed to the contributors who fund
his or her campaigns.
(k) To provide voters with timely information regarding the sources
of campaign contributions, expenditures, and political advertising.
(l) To prevent corruption, the appearance of corruption, and a
decline in voter confidence in the integrity of the electoral and political
process by imposing reasonable limits on contributions made to ballot
measure committees controlled formally or infornatty by candidates.' '(m) To prevent the distorting effect of campaign contributions and
expenditures by business corpot:atioils, which threaten imminently to
undermine the democratic process, and to restore the confidence of the
people-in the electoral process and in the integrity of government, by
requiring that corporations desiring to engage in election-r'eloted spending
in California do so through separati segiegated funds that protect their
.First Amendment rights.
(n) To limit the opportunity for circumvention of important
campcigr.r finhnce rules enacted to avoid cotuption, the appearaice
of corruption; distortion of the political process, and a decline.in voter
confidence by adopting reasonable restrictions governing electioneering
communications, aggregate contribution limits, and inter- candidate and
inter-committee transfers of campaign funds.
I
Article 2. Applic(;bili ty io t he Political Reforn Act of 1974
91023. Unless speci,fically superseded by provisions ofthis chapter,
the defnitions and provisions ofChapters I to t I, inclusive, o.fthis titte (the
Political Reform Act), shall govern the interpretarion ofthis chapter.
Article 3. Defnitions
91025. For purposes ofthe contribution limits ofthis chapier:
(a) The contributions ofan entity whose contributions are dit'ected
and controlled by any individual shatl be aggregated with contributions
made by. that individual and any other entity whose contributions are
directed and controlled by the same individual.
(b) If two or more entities make contt'ibutions that are directed ancl
controlled by a majority of the same persons, the contributions of those
entilies shall he aggregated.
(c) Contributions made by entities that are majority-owned by any
person shall be aggregated with the contributions of the majority owner
and all other entities majority-owned by that person, unless those entities
act independently in tlteir decisions to make contributions.
. 91027.'iCoordination"meansapaymentmadeforacommunication
or anything of value that is for the purpose of infuencing the outcome o.f
an election for elective state office and that is made by any one or ntore of
thefollowing methods:
(a) By o person in cooperation, consultalion, or concert with, at the
request or suggestion of, or pursuant to a pqrticular understanding with,
a candidate,,a candidate's controlled contmittee, or an agent acting ot1
behalf of a candidate or a controlled committee.
(b) Based on specific information abo.ut the candidate's plans.
projects, or needs provided to the person making the payment by the
candidate or the candidate's agent who provides the information with a
view toward having the payment made.
(c) By a person if, in the same primary or general election in
which the payment is made, the person malting the payment is serving as
a member, employee, fundraisbr, or agent of the candidati's controlled
committee in an executive or policvmaking position.
91028. "District" means:
(a) In the case of an electioTt for the Legislature or the Boarcl of
Equalization, the numeric district in which the candidate is seeking
offce.
.(b) In the case of an electionfor stdtewide elective ffice, the State
of California.
91029, "Entily" means any person other than an indiviQual.
91031. "Excess expenditure aimount" means the amount offunds
spent or obligated to be spent by a nonparticipating candidcite in excess of
the Clean Money amount available to a participating candidate.running
for the.same ffice. If a participa:ting candidate has made thb choice
specified in subdivision (c) of Section 91097 in an election where there
is more than onle participating candidate, then the Clean Money antount
available to the participating candidate shall be considered to be the
actual amount paid by the Clean Money Fund to the candidate.for that
primary or general election period, including an)/ increase or decrease
effected by the choice.
9l 033. "Exploratory period " means the period beginning I I months
before the primary election and ending on.the last.day of the quatiiying
period. The exploratory period begins before, btit extends to the end of
the qualifying period.
91035. "General election campoign period" neans the period
* * *Text of Proposed Laws I 173
TEXT OF PROPOSED LAWS * * *
E
beginning the day after the primary'election and ending on the day ofthe
general election.
9lq77. "htdependent candidate" ftteans a candidate for elective
state offce who does nbt represent a political partlt that has been granted .
ballot status for the general election and who has qualified to be on the
general election ballot.
91041. "Majority-owned" means an ownership of 50 percent or
mofe.
g1043. "Nonparticipating candidate" meqns o candidare for
elective state ffice who is on the ballot but has chosen not to apply for
Clean Money campaign.funding and a cartdidate who is on the ballDt and
has applied but has not satisfed the requirements for receiiing Clean
Monelt funding.
g 1 04 5. " OJfce-qualifed party" means a party whos"e gubernaior ial
nominee has received l0 percent or more ofthe votes at the last electioit
or whose candidatefor the same elective state ffice in the sante district,
whether statewide or legislative, as'the cunent candidate seeking Clean
Money funding received l0 percent o;r more of the voles at the last
election.
91046. "Office-qualified candidate" is a candidate seeking
nomination for an elective sMfu ffice from an ffice-qualified party.
91047. "One party dominant lbgislative district" is a district in
which the nttmber ofregistered voterc for the party with the llighest number
ofregisterqd voters exceeds the number ofregistered voters.for each ofthe
other parties ly an amount no less than 20 peryent ofthe total number of
registered voters in the district.
91047.5. "Paid Circulator," for the purpose ofcollecting qnalifying
contributions and as used in this chapter, means any person who is
compensated with money or anything o.f value far collecling qualifying
contributions. This defnition shall noi include afull-tintq cantpaign staff
member who spends no morc than 20 percent ofhis or her tinte gathering
qualifiing contributions. "Compensation," for purposes of this chapter,
means any economic consideration, including payments on the basis ofthe
number of qualifuing contributions gathered. "Compensatiort" does not
include reimbursentent ofreasonable travel expenses quch as expensesfor
transportation plus a reasonable stun for food and lodging.
91049. "Participating candidate" nreans a candidate for elective
state offce who qualifes for Clean Money campaign funding.-These
candidates are eligible to receive Clean Money funding during prinary
and general election carnpaign pqriods.
91051. "Party candidate" means a candidatefor elective state ffice
.who represents a political party that has been granted ballot status and
holds a primary election to choose its nominee for the ge.neral election.
9l053. "Perjbrmance-qualified candidate" rnean.r a candidate
for elective state offce who has either won the primary nomination of
an ffice-qualifed party or shown a broad base of support by gathering
twice the number of qiratifying contributions as is reEtiredfor an ffice-
qualified candidate. Independent candidates may qualiJy for funding as
p e rfo r manc e - q n aliJi e d c a n di d a t e s.
91054. "Person" means an. individual, proprletorship, frm,
partnership, joint venture, syndicate, business trust, company,
corporation, limited liability compony, association, committee, or any
other organizqtion or group ofpersons acting in concert.
91055. "Petty cash"'means cash amounts of one htndred dollars
($100) or less per day that are not drav,n on the Clean Mone1, Debit Card
and used to pay expenses ofno more than twenty-fve dollars ($25) each.
91057.. "Political party committee" means the state central
committee or county central coftmittee of an organi^ation that meets the
requirements for recognition as a political paity pursuant to Section 5100
of the Electidns Code.
91059. "Primary election campaign periocl" means the period
beginning 120 days before the primary election and ending on the day the
primary election results are certifed for" all candidates.for the relevanl
elective state offce.
91061. "Quatified candidate" means a candidate seeking
nomination for an.elective state ffice from a party that is not an ffice-
qualifed party. \gl063. "Quatifuing contribution" means a contribution'of
.five dollars ($5) that is received during the designated qualifying period
by a canditlate for elective state olfce seekihg to become eligible for Clean
Money campaign funding from a legal resident of the distict in which the
174 I Text of Proposed LawsJt't *
candidate is runningfor ffice.
91065. "Qualifying period" means the period during which
candidates .for elective. state office are permitted to collect qualdying
contributions in order to qualify for Clean Money funding. It begins 270
days before the primary election and ends 90 days before the day of the
primpry election for qualifed party candidates and begins any time ofter
Jitnuary I of the election year and lasts 180 days but in no event ending
later than 90 days before the general electioin for performance-qualifed
candidates who are running as independent candidates.
9 1 067. " Seed money contribution" means a contribu.tion of no more
than one htrndred dollars ($100) made by a legal resident ofCalifornia
during lhe exploratory period.
91069. "Small contributor committee" meons any committee that
meets all of the.follon'ing criteria:
(a) The comntittee has been in existence.for at least six months.
(b) The contntittee,has received conlributions from 100 or more
persons.
(c) No person has contributed to thb comntittee more than two
hundred dollars ($200) per calendar year.
(d) The committee makes contributions to /ive or more candidates
for elective slate oIfce.
(e) The commi.ttee is not a candidate-controlled committee pursuant
to Section 82016.
Article 4. Clean Money
. 91071. (a) An office-qualifed candidate for elective state ffice
qualifies as a participating canilidatefor the primary eleetion campaign
period if the.following requirements are met:
(l) The candidate files a declaration with the Commission that the
candidate has complied and will contply with all of the requirements of this
act, including the requirement that during the exploratory period and the
qualifying period the candidate not accept or spend private contributions
fr"om any source other than seed money conn'ibutions, Clean Moneyfunds,
and political partyfunds as specifed in Section 91123-
(2) The candidate neets the following qualifying contribution
requirements before the close of the qualifying period:
. (A) The ffice-qualifed party candidate collects at least thefollowing
numbe r of qual if1, i ng c o ntribrt i on s :
(i) Seven hundred fifty qualifying contributions for a candidate
runningfor the ffice of Member of the lssembly.
(ii) One thousand fve hundred qualifiing contributions for a
candidate runningfor the ffice of Member of the State Senate.
(iii) Two thousand qualifying contributions.for a candidate running
for the ffice of member of the State Board of Equalization.
(iv) Seven thousand five hundred qualifying contrihutions for a
candidate runningfor any statewide offce other than Governor.
(v) Twenty-fve thousand qualfying contributions for a candidate
runningfor the ffice of Governor.
(B) No individual legal resident of California shall provide more
than bne qualifying contribtttion for each ffice in which an election is
held covering the disftict in which he or she resides.
(C) Each qualifying contribution shall be ockni,ouledged by a
receipt to the contributor, with a copy submitted to the Commission by the
candidate. The receipl shall include the contributor's signature, printed
name, and home address,.the date, and the name ofthe candidate on whose
behalfthe contribution is made. In addilion, the receipt shall indicate by
the contributor's signattffe that the contributor uftderstands that he or she
may. contribute a qualfying contibution to only one candidate for each
office for whichthe contributor is eligible Lo vote, thdt the purpose ofthe
qualifuing contibution is to h,elp the candidate qualify for Clean Money
campaign funding, and ihat the Contributibn is made without coercion or
reintbursentent.
(b) A contribution subntitted as a qualifying contribution that does
'not include a signed andfully completed receipt shall not be counted as a
q u a I ifyi ng con t ri b u I io n.
(E) Allfve-dollar ($5) qualifying contribution:s, whether in theform
of cash, check, or money order made out to the candidate's campaigi
account, shall be deposited by the candidate in the candidate's campaign
account-
(PROPOSITION 89 CONTINUED)* * * TEXT OF PROPOSED LAWS
(F) All qualifying contributions' signed receipts shall be sent to the
Commission and shall be accoupanied by a check fiom the candidate's
campaign account for the total amount of qualifying contribution funds
received for deposit in the Clean Money Fund. This submission shall
be accompanied by a signed statenxent under penalty of perjury from
the candidate indicating that all of the information on the qualifying
contribution receipts is complete and acc4rate to the best ofthe candidate's
knowledge and that the amount of the enclosed check is equal to the sum
of all the five-dollar ($5) qualifying contributions tke candidate.has
received.
' (G) The candidate discloses at the end of the qualifying period the
total amounts, d any, spent to hire paid circulators to collect qualifying
contributions. The candidate shall disclose the information in a reporl
fled with the.Commission pursuant to regulations the Commission shall
promulgate.
(b) A party candidate for elective state ffice qualifies as a
participating candidatefor the general elec.!ion campaign period ifboth of
the.fotloiing requirements are met: ]
(1) The candidate met all of the applicable requirements of a
participating candidate in the primary election period andfled a declaration
with the Commission that the candidate has fulflled and will fuffill all of the
requirements of a participating candidate as stated in this act.
(2) As a participating candidate from an ffice-qualifed paity
during the primary election campaign period, the candidate had the highest
number ofvotes ofthe.iandidates contesting the primary eleation from the
candidate's lespective party and, there.fore, vlon the party's nomination.
91073. A qualified candidat'e for elective state ffice shall collect
at least half the number of signatures as required for an ffice-qualifed
candidate for the same ffice and may shov, a greater base of support
by collecting double the antount of signatures as required for an ffice-
qualifed candiddte to become a performance-qualifed candidate. The
candidate shall also fle a declaration with the Commission that the
candidate has compliecl and will compll' with a!t of the requirements oJ
this act. For a candidate who does not run in a primary, the qualifying
period begins any time after January I ofthe electionyear and lasts 180
days, except that it shall end no later'than 90 days before the general
'election. A candidate who is not ai ffice-qualifed candidate shail notify
the Commission within 24 hours of thi day when the candidate has begun
collec ting qua lifying co ntribution s.
91075. During the frst election ihat occuts after the effective
date of this act, a candidate for elective state ffice may be certified as a
participating candidate, notwiths tanding the acceptance of contributions
or naking of expenditures from privatefunds before the date of enactment
that would, absent lhis section, disqualify the candidate os a participating
candidate, provided that any private funds accepted but not expended
before the effective date of this qct mect any of the following criteria:
(a) Are returned to the contributor..
(b) Are held in a special campaign account and u sed only for reti4ing
a debtfrom a previous compaign.
(c) Are submitted to_the Commissionfor deposit in the Clean Money
Fund.
gt 077. ia) A participating candidate who accepts any Clean Money
benefts during tlte primary election campaign period shall comply with all
ofthe requirements ofthis chapter applicable to participating candidates
through the general election campaign period wliether the candidate
continues to accept benefts or hot.
(b) Ai elected state fficer who accepted Clean Money benefts in th'e.
election for the currently held ffice shall not accept private c'ontributions
from any source and shall not solicit ot receive political contributions
for any candidate or any political party committee or other political
committee, until thefirst day of the Qualifying Periodfor the next election
for the ffice currently held. Contributions pursuant to Section 9lll5 are
not subject to this requirement.
91079. (a) During the primalry and general election campaign
periods, a participating candidate who has voluntarily agreed to
participate in, and has become eligible.for, Clean Money benefits, shall not
accept privqte contributions from any source other than the candidate's
political party as specified in Section 91123. Contributions pursuant to
Section 9ll15 are not s7bject to this requifement.
(b) During the qua,lifying period and ihe primary and general
election campaign periods, a participating candidate who has voluntarily
agreed to participate in, and has become eligiblefor, Clean Money benefits
shall not solicit or receive political contributions for any other candidate
or.for any political party committee oi other committee as defined under
Section 82013.
(c) No person shall make a contribution in the name of another
person. A participating candidate who knoy's or reasonably should have
known that he or she received a qualifying contribution or a seed money
contribution that is not from the person listed on the receipt required by
sttbparagraph (C) of paragraplt (2) of subdivision (a) of Section 91071
shall be liable to pay the Commission the entire amount of the inaccurately
identified contribution for deposit in the Clean Money Fund, in addition
to any penahies.
(d) During the primary and general election bampaign periods,
a participating candidate shall pay for all of the candidate's campaign
expenditures, excepl petty cash expenditures, by means of a "Clean
Mbney Debit Card" issued by the Commission, as authorized under
Section 9l,l4l .
(e) Candidates for elective state offce shall furnish complete
cantpaign records, inclttding all records of seed money contributions
and qualifying contribqions, to the Commission at regular .filing
times. Candidates shall cooperute with any audit or examination by the
Contmission, the Franchise Tax Board, or any enforcement agency.
91081. (a) During an election for an elective state ffice; each
participating candidate shall conduct all campaign.financial dctivities
through a single campaign account. Accounts established pursuant to
Section 9l I l5 are not su.bject tit this requirement.
(b) Notwithstanding Section 85201, a participating candidate may
maintain a cantpaign account other than the campaign account described
.in subdivision (a) tf the other campaign account is Jbr the purpose of
retiring a cantpaign debt that was incuned during a previous election
cantpaign in which the candidate was not a participating candidate.
(c) Contributions for the purposes'of retiring a previous campaign
debt that are deposited in the "other campaign account" described in
subdivision (b) shall.not be considered "contributions" to the ccindidate's
current campaign. Contributionsfor the purpose ofretifing debt shall only
be raised during the six-month period.following lhe date of the election,
unless,for good cause shown, the candidate receives a six-month extension
Jiom the Conmission.
' (d) Participa,ting candidates shall fle reports offnoncial activity
related to the current election cycle separatell,.from'reports offyrancial
activity related to previous election cycles.
91083. (a) Participating candidates shall use their Cl.ean Mone1,
.funds onlyfor direct campaign purposes.
(b) A participating candidate shall not use Clean Money funds for
uny of the following:
(l) Costs of legal defense in any campaign law enforcement
proceeding under this act.
(2) tndirect campoign purposes, inclutling, but not Iimited to, the
following:
(A) The candidate's personal support or compensation to the
candidate or the candidate's family.
(B) The candidate's personal appearance.
(C) Capital assets having a value in excess offve hundred dollars
($500) and useful life extending beyond the end of the current qlection
periocl cletermined in accordance with generally accepted accounting
principles. Nottoithstanding this limitation, a participating candidate may
purch,ase computer-related assets provided that eaeh such asset has a
value not in excess of $1,000
(D) A contribution or loan to the campaign commifiee of another
candidate or to a political party committee or other political committee.
(E) An independent expenditure
' (F) A gift in excess oftwenty-fve dollars ($25) per person
(G) Any payment or h"ansfer for u,hicih compensating value is not
received.
(3) Compensation to any individual who receives a salary from
the Statb of California. Administrative and support personnel shall be
exempl.
91085. (a) Personal funds contribilted by o candidate for elective
E
* * *Text ol Proposed Laws I 175
TEXT OF PROPOSED IAWS * * *
state fficie seeking to become eligible as a participating candidate as seed
money to'his or her campaign, or by adult members of the candidate's
family to the candidate, shall not exieed the maximum of one hundred
dollars ($100) per contributor.
(b) Personal fund|'shall not be used to meet the qualifying
contribution requirement except for one fve-dollar (S 5) contribution from
the candidate and onefive-dollar ($5) contributionfrom the candidate's
spouse.
91087. (a) The only prirate contributions a candidatefor elective
state offce seeking to become eligible for Clean Monelt funding shall
accept, other than qualiJying contributions, contributions plo"suant to
Section 9tll5, and Iimited conlributions from the candidate's poli.tical
party as specified in Section 91123, are seed ntoney confuibutions
contributed by individual legal residents ofthe State ofCalfornia residing
in the district in which the candidate is runningfor election prior to the end
of the qual ifyi ng peribd.
(b1 A seed money contribution'shall not exceed one hundred dollars
(5100) per donor, and the aggregate amount ofseed ntoney cotributions
accepted by a candidate for elective state ffice seeking to become eligible
for Clean Money funding shall not exceed:
(1) Ten thousand dollars (810,000) for a candidate runningfor the
ffice of Member of the Assembly
(2) Twenty thousand dollars ($20,000) for a candidate running.for
the ffice of Member of the State Senate.
(3) Thirty thousand dollars ($30,000) for a aandidate runningfor
the oJfcd of member of the State Boarcl of Equalization.
' (4) Sevbnty-five thousand dollars ($75,000) for a candidate running
for a statewide olfce other than Governor.
(5) Two hundred.fifty thousand dollars ($250,000) Jbr a candidate
runningfor lhe ffice of Governor.
(c) Receiptsfor seed m,onelt contributions under twenty-five dollars
($25) shall include the contributor's signature, printed name, street
address, and ZIP Code. Receipts for seed money contribtrtions oJ twenty'
fve dollars ($25) or more shall also include the contributor's occupation
and name of employer. Contributions shall not be retained if the required
disclosure information is not received,
(d) Seed money shall be spent only during the exploratory and
quatifuing periods. Seed money shall not be spent during the primary
or general election campaign periods. Any unspent seed money shall be
turned over to the Commission for deposit in the Clean Money Fund.
(e) lhithin 72 hours after the close of the qualifyii! period,
candidates seeking to become eligible for Clean Money funding shall clo
both of thefollowing:
(1) Fully disclose all seed money cohtributions and expenditures to
the Commission.' (2) Turn over to the Commission for deposit in the Clean Money
Fund any seed money th:e candidate has raised during the exploratory
period that exceeds the.aggregate seed money limit.
910gl.' Participating candidate| in ra.ces jbr elective state ffice
with more than one.bandidate shall agree to participate in at leasl one
public debate cluring a contested ptimary election.and two public deb,ates
. during a contested general election. The debates shall be conducted
in accordance with regulations issued by the Fair Politicdl Practices
Commission.
91093. (a) No more than fve days ajTer a candidate apflies for'
Clean Money benefts, the Commission shall cdrtify that the candidate is
or'is not eligible. Eligibility may be revokel if the candidate violates the
requirements ofthis act, in which case the candidate shall repay all Clean
Money.funds.
(b). fhe cqndidate's reqltest for certifcation shall be signed by
the candidate and the candidate's campaign tredsurer under penalty of
perjury.
'" @ The Commission's determination isfnal except that it is subject
to a promptjudicial review.
@) fhe Commission shall provide upclated itormdtion on.its Web
site th'at reflects changes io a candidate's status as participating or non-
. pqrticipating candidates within 24 hours ofsuch a change.
Article 5. Cledh Money Benefts
91095. (a) Candidates for elective state ffice who qualify for
Clean Money funding for primary and general. elections shall:
' (1) Receiue Clean Money finding fr"om the Comnission for each
election, the.antowtt of which is specifed in Section 91099. This.funding
tnay be used tofnance any and all canpaign expehses duringthe particular
campaign period for which it was allocated consistent t!,ith Section 91081 '
(2) Receive, if an ffice-qualifed candidate or a performance.
qualifed candidate showing a broad.base of'support, additiona.l Clean
Money firnding to tnatch any excess expendilure amount spent by a
nonporticipating candidate,, as disclosed pursltant to. Section 91107,
provided that the dollarvahte ofthe excess bxpenditttre anount, combined
with the annunt spent by any independeyt expenditure exceeds, the initial
anorrnt ofClean Moneyfunding received by the participoting candidate.' (3) Receive, if an ffice-qualifed candidate or a perJbrmance'
qualifed cantlidate showing a broad base of support, additional Clean
Money fimding to ntatch'an.v excess independent expenditure ntade in
opposition to theircandidacies or insupport oftlteir opponents'candidacies,
as disclosed put'suant to Section 91109, provided that llte dollar value of
the expenditure, combinetl .v,ith the amount raised or received thus./izr by
any opposing candida:te who benefts fi'om. the independenl expenditure
exceeds, the initial amount of .Clean Money .funding received by the
pa/ticipatin:g candidate.
(b) The maximum aggregate amount of ./ilnding a particiPating
ffice-qualifed candidate or e performance-qualifed candidate showing a
broad base ofsupport shall receive to ntatch independent expenditures aid
excess expenditures oJ'nonparticipating candidates shall be no more than
fve times the antount of Clean Monel' funding allocated to a porticipating
candidate pursuant to Section 91099 for a particular primary or general
election campaign period, except that for the ffice of Governor,. the
amount shall be no. more than .four times the amount qf Clean Money
funding allocated to a participating candidate pursuant to Section 91099.
91095.5. (a) Independent expdnditures against a participoting
candidate shall be fteated as expendittrres of each opposing candidate for
the purpos.es oJ'Section 91095.
(b) Independent expenditures in favor of one or more non-
.participating opponents o.f a'paticipoting candidate shall be treated as
expenditures of those non-participating candidates for'the purpose of
Section 91095.
(c) Indepenclent expenilitures in favor of a participating candidate
shall be treated,.for every oppostng particiPating candidate, as thotrgh
the independent expenditures were an expenditu"e of a nonparticipating
opponent, for purpose of Section 91095.
(d) The Conmission shall promttlga'te regulations relating to
independent expenditures ihat reference or depict more than one candidate
for the purpos.es ofSection 91095.
91097. (a) A qualifedor ffice-qualified candidatefor elective state
olfce shall receive the candidate's Clean Mone1, funding for the pritnary
elec.tion campaign period on tlte date on which the Contmission certifes
the candidate as a participating candidate. This certifcation shall take
place no later than.five days after the candidate has submitted the required
number of qualifving ciontribution receipts, a check Jbr the total anrcunt
of quatifying contibuilons collected; and a declaration ltating that thi
candidate has cotnplied with all. other rqquiiements for eligibility as a
par.ticipating candidate, but no earlier than the beginning of the primarv
el ect ion ca m pa i gn p.er i od.
(b) A qualifed or perJbrmance-qualifed candidate for elective state
ffice shall receive the candida,te's Clean Money funding.for the general
election cantpaign perioil within two business days after certif.cation of
the primarl election results. \
(c) A participating candidate.fbr Legisluture runnihg in the primary
of the dontinant party in a one-party dominant district mdy choose to
reallocate a portion of the Clean Mone1, funding amount .from the general
election period to the primary period. The candidate shall make this choice
, in a writing submitted to the Commission with the ntaterials specified in
subdivision (a) at the close of the qualifying period. The participating
candidate v,ho makes sr.tch a choice shall receive an additional amount
equal to 25 percent of the amount specifed for the general election for
the appropriate ffice as setforth in subdivision (b) o.f Section 91099. The
amount a participating candidate who makes such a choice shall receive al
the beginning ofthe gendral election period shall be reduced by 25 percent.
176 I Text of Proposed Laws * * *
(PROPOSITION 89 CONTINUED)* * * TEXI OF PROPOSED IAWS
The choice nruy also affect the amount at which an opposing candidate
nny be considered lo have exceedetl the (tnount of Cleun MoneS' funding
available to the participuting candidate. IJ'a conrpeting participating
c-andidate transfers funds pursuant to this subclivision rt'on the general
to'the primary election by the close of the qualdying period, cny other
participaling candidates in the same election may transfer the same
antount offunds ft"ont the general to the primary election by notifying the
Comntission in writing withinfve days of the close of the qualifying period.
The Commission shall promulgate regulations that require notification of
such transfers to the Commission and to affected candidates.
91099. (a) For candidates in a primary election for elective state
ffice or for performance-qualifed candidates fot" elective state ffice in a
special or special runofJ election:
(l) TIte annunt of Clean Moneyrttndingfor an oJfce-qualifed party
candidate in a prinrary, speciul, or special runoJJ election is:
(A) Two hundredfifty thousand dollars (5250,000) for a candidate
rttnningfor the ffice of Member of tlte Asseinbly.
(B) Five hundred thousartd dollars ($500,000) for a candidate
runningfor the offce of Member of tltb State Senate.
(C) Two hundredJifty tltousancl dollars ($250,000) Jbr a candidate
rutuningfor the ffice of membey of the S.tate Board of Equolization.
(D) Two million dollars ($2,000,000) for a candidate mnningfor a
statewide olrtce other than Governor.
(E).Ten million dollars ($10,000,000) for a candidate nrnningfor
Governor'.
(2 ) T he a ntount of C le a n M o n ey Jil ndin g for a perfo r m a nc e- q u a lifi ed
candidate in a primary or special election is 20 percent ofthe anount an
ffice-qualifed party candidate runningfor the sante ffice could ieceive.
' The anount ofClean Mo4eyfundingfor a performance-qualiJied candidate
in a special runoJf election,is 50 percent of tlte amount an ffice-qualifed
candidate runningfor the sante ffice woultl receive.
(3) The Clean Moneyfunding amountJbr a participuting candidate
in a primary ele.ction where ho other candidhtes are running in the sante
party primary for that seat is l0 percent of the amount provided in a
con les led p rimary elect ion.
(b) For candidates.for elective state ffice in a general eleclibn:
(1) Tl|e anount of Cleun Money funtling .for un oJJice-quatiJied
candidate in u conlested geperal electiort is:
(A) Four hundred thousand dollars ($400,000) .for a candidate
runningJbr the ffice of Member of the Assembly.
(B) Eight hunclred tiousand.dollars ($800,000) for a candidate
runningfor the ffice of Member of tlrc State Senate
(C) Four hundred thousancl dollars ($400,000) for a candidate
runningJbr the ffice of mentber of the State Board of Eqtnlization.
,(D) Two million dollars ($2,000,000) f1r a canclidate running.for a
statewide ofrtce other than Governor,
,. (E) Fifteen ntillion dollars ($15,000,000) for a cunditlute runtting
.lbr Govcrnor.
(2) 'fhe antount of Clean MoneyJinclingJbr a performance-qualiJied
candidate in a contested general election is 50 percent o.fthe antount an
ffice-qualifed candidate runningfor the same ffice coult! rcceive.
(3) The amount of Clean Moneyfitndingfor a qualified candidate in
a contested general election is 25 percent oJ tlle enrcunt an ffice-qualifed
candidate runningfor tlte same ffice could receive.
Article 6. Restrictions on Nonpurticiputing Canllidutes, Politicul
Parties, untl Irulcpe ntlurt Expentliture Commiilces
91101. (a) A person,,othcr tlurn a sntull cotttributor comntittec or
politic'al partlt conunillee, shall rtot nakc to any nonpafticipAling cuntlitlate
or candidutes, aild u nonparticipating cutttlitlate shall not uccept Ji'ont
a person ollter llrun a snqll contributor committee or u politicul purly
connittee, any corztribution totaling nore tltan .five hundred clollars
($500) per electiotr, if u cuntlitlute .fbf the Legisktture or for thq State
Boarcl oJ'Equali:ation, or nore tlrurt one tlrcusantl tlollars ($1,000) if u
cunclitlateJor stutctrtile o.ffice. Contributions pursuilnt to Section 9l I l5 ure
ttot subjact lo !his rcquircntcnl.
(b) The provisions ol this sectiotr do not apply to o nonparti(iputing
caildidate's contributions of personal firnds to the .candidate's own
c4ntpatgn.
91103. A snrull contributor coiltlttiftee sltall not ntake Io any
nonparticipating candidate, urtcl a nonpurticipating candidate shall not
acceptfrbm a sntall contributor contnittee, any contribution totaling ntore
than two thousandfve hundred dollqrs ($2,500) per election.
91105. (a) A'person shall not nnke to any independent expenditure
comntittee, and a conunittee shall not accept front a person, contributions
totaling nrore tltan one thousand dollars ($1,000) per calendar year for
the purpose ofmaking expenditu'es in suppo.rt ofthe election or defeat of
a candidate, or candidates.for elective state blrtce.
(b) A person ntay not make to any contntittee, other than a political
party contrttittee, ancl a connittee other than a political party committee
m1y not uccept, ary1 cotltributiott totaling nrcre than one tlrcusand dollars
($ 1,000) per calewlur ),ear .fbr the purpose of ntaking contributions to any
cotttrrtittees, including bullot nteasure contnittees, controlled by candidates
Jcir elective state ffice. '\
. (c) A person may not make to any political party committee, and
a political party committee ma)' not accept, any contribution totaling
ntore than seven thousancl fiveJtundred dollurs ($7,500) per calendar
),eur.ibr the put'pose of mali'ing coiltriblttions.fbr the suppoit or ctefeat of
cunclidates.for elective state or for the purposc of naking contributions.
to any comnittees, including ballot neasure contnittees, contolled by
candidates .for elective state ffice. Notwithstanding Section 85312, this
limit applies to contributions made to a political party usedfor the purpose
ofnnking expenditures at tlrc behest ofa candidatefor elective state.offce
for conrnttuticatiotxs to partv nenrbers related to the cantlidate's candidacy
for elective stute ffice. .
(d) Nothing in this chapter limits a nonparticipating candidate
for elective state ffice frorn transferuing contrib,ttions received by the
candidate in excess of any amount necessary to defi"ay the candidate's
expensesfor elecfrion related activities or holding offce to a political party
conunittee, provided those trans/brred contributions ure used for purposes
consistent witlt paragraph (4) ofiubdivision (b) ofSection 89519.
(e) An elected state olrtcer, nonparticipating candidate, legal defense
account, political'"party committee, or independeit expenditure committee
shall nbt solicit or accept a contribution front a registered state lobbyist
or lobbying frnt, or rtom a state contractor,, if the lobbyist or: employee
br principal oJ'the tobblting Jirnt is registered to lobby, or if the state
contructor hus present or poteutialJiltLtre business with, tlie govenrntental
agency for u,hich the cuntlidute is secking electiolt or the governnrcntal
agency of the elected state qfficer.
(f) No committee controlled by a candidate qr fficeholder, shall
ntake any contribution to any other candidate runningfor state ofrce or
his or her cbntrolled committee.
k) No person shall contribute in the aggregate more than seven
thousand.five htrndred dollars ($7,500) to all candidates for elective state
ffices and their contolled comiliittees, political party comntittees, and
ery) other conmtittees, irt uttlt celgnd4l' ),ear, Jbr lhe purpose of naking
cotitributiorts to cuntlitlates Jbr elective state olfcc or independent
expentlitures lo sLtpport or oppose candidutes Jbr elective state olfce;
provitled, lrowever, thut a llerson ntcry contribute up to anladditional seven
tltousandJive ltundred dollars ($7,500) in u colentlar yeat to independent
expanditure contmittees tltat support or oppose canclidates for elective
statc oJf ca.
' (h) A controlled cornnittee ofa candidate shall not make independent
expeilditures untl shall not nnke contribLttious to anolher contnilttee which
mukes independent e\pinditures to support or oppose other candidates.
Article 6.5. Applicubilitv oJ'Lintits to Spagiul Elections and
. Speciul Runolf Elet'tiotts
91106. The cotilributiort untl expenclitLrre lintits untl restictions of
this cltupter uppl),to speciul clectiorts und uppll' to special ntnoJJ'electio4s.
A spccial elcction untl u spcciol runoJl clection ure sepdrate elections for
purposes ol the c'ontributiort ttnd expcrttliture provisious set Jbrth in this
cltultttr.
Articlc 7. DistlbsureRequirements
9 1 1 07. k, A nonpurtic ipating cundidate sh'oll notify the Conmtission
online or electronicull! on the.sante day 111n7 the candidate spends or
* * *Text of Proposed Laws | 177
TEXT OF PROPOSED LAWS * * *
incurs expenditures in excess of the initial amount of Clean Money
.funding allocated to the candidate's Clean Money opponent or opponents
pursuant to Section 91099. The notifcation shall include the excess
amount spent or incurrled as of that date. Upon receiving notifcation from
a nonparticipating candidate, the Commission shall immediately notify all
other candidates in thal eleclion.
(b) A nonpart icipating candidate th at sp ends or inars expend itures.
in excess of the initial amount of Clean Money funding actually received
by the candidate's Clean Money opponent or opponents, shall notify
the Commission online or electronically within. 24 hours each time the
candidate's committee makes or incurs cumttlative expenditures of fve
thousand dollars ($5,000) or more in excess ofthe amount(s).
(c) In the event a nonparticipating candidatefails to timely notify the
Commission in accordance with subdivisions (a) and (b), the Commission
may make its own determination as to whether excess expelnditures have
been made or incurred by nonparticipdling candidates.
(d) Upon receiving an excess expenditure notifcation or determining
that an excess expenditure has been made, the Commission shall
release additional Clean Money funding to the opposing participating
performance-qualified and ffice- qualifecl candidates within one bus in es s
day. The.amount released shall be equal to the excess amount spent ot
incurred by the nonparticipating candidate subject to the limits setforth in
subdivision (b) of Section 91095.
91107.5. (a) No candidatefor elective state ffice shall expend or
contribute more than $25,000 in personalfunds in connection with his or
her campaign so as to make the total amount contributedfrom all sources
aggrerytte rhore than the amount set forth in Section 91099 for the bffice
Jbr which they.are running unless and until the conditions in subdivisions
(b) and (c1 are met.
(b) Notice of the candidate's intent to so expend or' contribute shall
'be provided online, electonically, by facsimile, or pefional delivery, to
all opponents and to the Commission within 15 days of the decision to
expin'd or contribute, specifying the amount intended to be expended or
conlribuled.
(c) All personatfunds to be expehded or contributid by the candidate
pursuant tb subdivision (a) shall first be deposiled in the candidate's
campaign contribution checking account at least 15 days .before the
election. Such deposited funds shall be considered an expenditure
made by the \andidate and shall trigger matching funds pursuant to
Section 91095.
(d) In the event that the candidate contributes or expends more in
personalfunds than provided by this section, the matchingfund liniit set
forth in subdivision (b) ofSection 91095 shall be Qoubledfor all opposing
pa rt i ci pa t i ng cq nd i da t es.
g1l0g. (a) In addition to any other report required by this
chapter, a committee, including a political party committee, that makes
independent expenditures ofone thousand dollars ($ I,000) or mole during
on election cycle to support or oppose a candidate, shall fle a report with
the Commission disclosing the independent expenditure within 24 hours of
the time the independent expenditure is made or inctrrid. This report shall
disclose the same information required by subdiiision (b) ofSection 84204
and shall befled online or electronically if the committee is required turtb
reports pursuant to Section 84605, and by facsimile, personal delivery or
by such other tieans as de.termined by the Commissionfor committees that
do not.fle reports electronically
(b) An expenditure may not be considered independent, and shall be
treated as a contribution from the person making the expenditure to the
candidate on whose behalf, orfor whose beneft, the expenditure is made,
if the expencliture is made under any of thefollowing circumstances:
(1) The expenditure is madewith the cooperation of, or in consull.ation
with, the candidate on whose behalf, or for whose benefit, thl.e expenditure
is made, or any controlled committee or any agent of the candidate.
(2) The expenditure is made in concert with, or at the request or
suggestion of the candidate on whose beha$ or for whose benefit, the
expenditure is made, or any controlled committee or any agent of the
candidale.
(3) The expenditure is made under any arrangement, coordination,
or direction with respect to the candidate or the candidate's agent and the
person making lhe expenditure.
(c) The report to the Commission shall ihclude a signed statement
under penalty ofperjury by the person or persons making the independent
expenditure identifying the candidate or candidates supported or opposed
by the independbnt expenditure, and ffirming thdt the expenditure is
independent ancl not coordinated with a candidate or a political party.
(d) Any comnxittee that fails ro fle the required report to the
Commission or that knowingly provides materially false idormation in a
report filed pursuant to subdivisions (a) or (b), may be fnecl up to three
times the amoltnt ofthe indepentlent expenditure, in addition to any other
remedies provided by this act.
(e) Upon receiving a report that an independent expenditure has been
made or incurred, the Commission shall immediately notify all candidates
in that election and release additional Clean Money.funding, pursuent to
Section 91095, within one business dcy to all participating candidates in
that specifc primary or general election whom the Commission determines
wbre not beneficiaries ofthe independent expenditure, subject to the limits
in subdivision (b) of Section 91095.
91113. (a) In addition to other disclosure provisions contained in
this Code, all broadcast and print advertisements paidfor by a candidate
for elective state ffice or committee controlled by a candidatefor elective
state ffice shall include a disclosure statentenl indicating that the
candidate has approved of the contents of the advertisement.
(b) The disclosure Statenxent required by subdivision (a) that is
included in a broadcast advertisement shall be spoken so as to be clearly
audible and understood by the intended public and otherv)ise appropriately
conveyedfor the hearing impaired.
(c) The disclostffe, statement required by subtlivision (o) that is
included in a print advertisement shall be printed clearly and legibly in
no less than lq-point type and in a conspicuous manner as defned by the
Commission.
. (d) For purposes ofthis section, "advertisement'.' means any general
or public advertisement which is authprized and paid for by a candidate
or conmittee controlled by a candidate for the purpose of supporting
or opposing a candidate for elective state office, but does not include a
campaign bulton smaller than l0 inches in diametbr, a bumper sticker
smaller than 60 square inches, or'other advertisement as iletermined by
regulations of the Commission.
Article 8. Ballot Access, Recount, Legal Defense,
Officeholder, and Inaugurul Fu4ds
91115. (a) A candidate for elective state offce or elected'state
fficer may establish a separate account to defray attorney's fees and
other related legal costs incuted for the candidate'S or elected state
fficer's expenses in any litigation over ballot access, qualfficailons or
designqtions, election recoun$ and contests, or in connection with aryt
legal dbfense if the candidate or elected state fficer is subject to one or
more civil or criminal proceedings or administrative proceedings arising
directly out ofthe conduct ofan election campaign, the electoral process,
or the performance qf the officer's govbrnmental activities and duties.
These funds may be used only to defray those attorney's,fees and other
related legal cosls.
(b) An elected state fficerwho accepted Clean Money benef ts in the
election shall receive $50,000 annually from the Clean Money Fund, if a
metnber of the Legislature, or $100,000 annuallyfor all statewide ffices to
defray fficeholder expenses. Any such elected;tate fficer shall not accept
private contributions from any source for his or her fficeholder apcount
Jbr the currently held ffice unless sttch fficer raises private contributions
for a campaign account in excess ofthe amounts setforth in Sec.91087.
In'the event that such elected officer raises private contributions for a
campaign account in excess ofthe amounts setforth in Sec.91087, he or
.she shall no longer receive money,for an offceholder account as of the
start of the next calendar year and may raise priuate'contributions for an
offceholder account pursuant to subdivision (c) ofSection 91 115.
(c) An elected state officer who did not accept Clean Money benefits
in the electionfor his or her currefi ofrtce may establish g separate accoilnt
'to defray fficehblder expenses tliat are set forth by the Commission. No
funds front th.is account shall be usedfor q mass mailing. The aggregate
amount contributed to any fficeholder account shall not exceed fifty
thousand dollars ($50,000) annually for any legislative ffic:er or one
hundred thousand ($100,000) for any statewide fficer.
(tl) A Goverior, Lieutenant Governor, or other statewide fficer may
178 I Text of Proposed Laws * * *
(PROPOSITION 89 CONTINUED)* * *TEXT OF PROPOSED IAWS
establish an inaugural account to cover the cost of events, celebrations,
gatherings, dnd communications that take place as part of, or in honor
of, the fficer's inauguration. No inaugural account may exceed $500,000
cumulatively.
(e) A candidate or fficer may qeceive contributions of up to fve
hundred dollars ($500) per person per year in the aggregatefor accounts
in subdivisions (a), (b), and (d). All contributions, whether cash or in-kind,
shall be reported in a manner prescribed by the Commission. Contributions
to suchfunds shall not be considered campaign contributions.
ffi A candidate or elected stste olfcer who has established a legal
account pursuant to subdivision (a) shall dispose ofall leftoverfunds.once
the legal dispute is resolved and all expenses are discharged. The candidate
or elected state fficer shall dispose of the excess funds consistent with for
one or riore ofthe purposes setforth in paragraphs (1) to (5), inclusive, of
subdivision (b) ofSection 89519.
(g) An elected state fficer who has established an fficeholder
account pursuani to subdivision (b) shall return to the state Clean Money
Fund all leftover funds once the fficer leaves and all expenses are
discharged.
(h) An elected state offcer who has established an fficeholder
account pursuant to subdivision (c) shall dispose ofall leftoverfunds once
the fficer leaves ffice and all expenses are dischargetl. The electe/ state
fficer shall dispose of the excess funds consistent with for one or more of
the purposes setforth in paragraphs (1) to (5), inclusive, ofsubdivision (b)
ofSection 89519.,
Article 9. Restrictions on Candidates
91117. A ca.ndidate for elective state olfice or any committee
controlled by the candidate shall not receive any contributions prior to the
beginning of the exploratory period.
91119. A nonparticipating candidate may transfer campaignfunds
front one controlled committee to a contolled committee for elective state
ffice of the same nonparticipating candidate. Contributions transferrbd
shall be attributed to specifc contributors using a "last in,frst out" or
"first in,frst out" accounting method, and these attributed contributions
.when aggregated $,ith all other contributions from the same contributor
shall not exceed the litnits setforth in Section'91101, 91103 or 91105.
91121. A nonparticipating. caididate may accept a contribution
after the date ofthe election only to the extent that the contribution does not
exceed net debts outstandingfrom the election and the contribution does
not otherwise exceed the applicable contribution limitfor that election. All
debts shall be repaid or written offno later than 90 days after the general
election. The Commission may extend this deadlinefor up to an additional
90 days upon a finding of good cause for the extension based on facts and
circumstances presented by the candidate.
91123. Candidatesfor elective stote ffice may accept monetary or
in-kind contributions from political palties provided that the aggregate
amount.of such contributions from all political party committees combined
does not exceed thefollowing amounts:
(a) The aggregate amountt of monetory or in kind contributions from
all political party committees combined for each participating and non-
participating candidate in a primary, special, or special runoff election is:
(1) Twelve thousandfve hundred dollars ($t2,500) for a candidate
runningfor the ffice of Member of the Assembly.
(2) Twenty-fve thousand dollars ($25,000) for a candidate running
for the ffice of Member of the State Senate.
(3 ) Twelve thousand fve h undred dol! ars ( $ I 2, 500) for a candidate
runningfor the ffice of member of the State Board of Equalization.
(4) One hundred thousand dollars ($100,000) for a candidote
runningfor a staiewide offce other than Governor.
(5) Five hundred thousand dotlars 1$500,000) for a candidate
runningfor Governor.
(b) The aggregate amount of mpnetary or in kind contributions front
all political party committees combined for each participating and non-
participating candidqte in a contested general election is:
(1) Twenty thousand dollars ($20,000) for a candidate runningfor
the offce of Member of the Assembly.
(2) Forty thousand dollars ($40,000) for a candidate runningfor the
offce of Member of the State Senate.
(3) Twenty thousand dollars ($20,000) for a candidate runningfor
the ffice of member of the State,Board of Equalization.
(4) Two hundred thousand dollars ($200,000) for a candidate
runningfor a statewide ffice other than Governor.
(5) Seven hundredfifty thousand dollars ($750,000)for a candidate
runningfor Governor.
Such contributions shall not c'ount against the Clean Money funding
amounts available to participatingcandidates andfunds may be spent directly
by participating candidates without using a Clean Money Debit Card.
Article 10. Voter Pamphlet Statements
91127. The Secretary of State shall designate in the state ballot
pamphlet those chnQidates who have voluntarily agreed to be participating
candidates.
91131. (a) A banctidate who is a participating candidate may place
a statement in the state ballot pamphlet and on any Internet Web site listing
of candidates maintained by any government agency including, but not
limited to, the Secretary of State, that does not exceed 250 words. The
statement shall not make any reference to any opponent of the candidate.
The candidate may also provide a list of ten endorsers for placement in tlie
ballot pamphlet. This statement and list ofendorsers shall be submitted in
accoldance with tineframes and procedures set forth by the Secretary of
State for the preparation of the state ballot pamphlets.
(b) A nonparticipating candidate may pay to plece a statement in
the qppropriate ballot pamphlet or voter information portion ofthe sample
ballol that does not exceed 250 words, and may pay the price to place a
list ofup to l0 endorsers in the ballot pamphlet. The siatement shall not
make any reference to any opponent of the candidate. The statement shall
be submitted in accordance with timeframes and procedures set forth by
the Secretary of State for the preparation ofthe state ballot pamphlets. The
nonparticipating candidate shall be charged the pro rata cost ofprinting,
handling, translating, and mailing any campaign statement and list of
endorsers provided pursuant to this subdivision.
Article 10.5. Voter Education and Outreach
91132. The Secretqry of State shall, using the funds provided by
.paragraph (3) ofsubdivision (a) ofSection 91134, conduct voter education
and outreach efforts throughout the state regarding the public campaign
funding system established by this chapter and, specifically, the meaning
behind the statements included in the ballot, as provided in subparagraph
(A) ofparagraph (2) ofsubdivision (a) ofSection 13207 ofthe Elections
Code. Such efforts shall include public service announcements in radio,
television, or print media that are disseminated in a manner consistent
with the language assistance requirements of the Voting Rights Act, 42
U.S.C. Sec. 1973aa-1. Public announcements disseminated by television,
radio, or print media shall notfeature the voice, name, still or video image
of I he Secreta ry o I St at e.
Article ll. Appropriationsfor the Clean Money Fund
91133. A special, dedicated, nonlapsing Cleart Money Fund is..
created in the State Treasury. The Franchise Tax Board shall deposit into
the Clean Money Fundfees generaiedfrom thefollowing assessments:
(a) an increase of0.2 in the ratefor amounts paid on taxable income
as provided in subdivision (g) ofSection 23151 ofthe Revenue and Taxation
Code [from 8.84 percent to 9.04 percentJ;
(b) an increase of 0.2 in the rate.for antounts paid on taxable income
as provided in subdivision (b) ofSection 23 186 ofthe Revenue and Taxation
Code [front 10.84 percent to 11.04 percent]; and
(c) an increase in the tax imposed on papsive investhlent income
under Section 23811 of the Revenue and Taxation Code from 1.5 percent
to 1.66 percent ofannual net passive investment incomefor corporations
with over 850 million in total receipts.
91 134. (a) The Franchise Tax Board shall administer the collection
of the Clean Money Fees described herein, including any penalties and
inlerest. The Clean Money Fund is establishedfor thefollowing purposes:
(l) Providing publicfnancingfor the election campaigns of certified
participating Candidates during primary and general. campaign periods.
* * 'tText of Proposed Laws I 179
TEXT OF PROPOSED LAWS * * *
(2) Paying for the administrative and enforcement costs of the
Commission related to this chapter. The Commission shall annually be
oppropriated at least three million dollars ($3,000,000), adjustetlfor cost-
of-living changes as provided in Section 82001, to administer this act.
(3) Payinqfor the voter education and outeach elforts as provided
in Section 91132, except th,at the annual amount offunds available for
these efforts shall be no more than fve percent of the amount specifed in
subdivision (a) for the each of the first lwo years after implementation of
this chapter in which there are elections, and no more than one percent
every year thereafter in which there are elections. Funds unttsed by the
Secretary ofstate shall revert to the Clean Money Fund, annually.
(b) Funds collected pursuant lo lhis section shall first be collected in
the 2007-08fiscal year and in each subsequentfiscal year'
9 I I 35. Otfter sources ofrevenue to be deposited it the Clean Money
Fund shall include all of the following:
(a) The qualifuing contributions required of candidotes seeking
to become certifed as participating candidates and candidates' excess
.q u alifu in g c o n t r ib u t io n s.
(b) The excess sesd money contributions of candidates seeking to
become certified as participating candidates.
(c) unspent or uncommitted funds shall be returned no later than
thirty days following the date of the close of the primary election period or
,
the general electionfor which theywere distibuted. The Commission shall
promulgate regulations in furtherance of this subdivision.
(d) Fines levied by the Commission against candidates Jbr violation
of election laws.
(e) Voluntary dbnations made directly to the Clean Money Fund.
(fl Any interest generated by the Clean Money Fund.
91136. Thi amount of money in the Clean Money Fund shall not
exceed four times the amount of six dollars ($6.00) times the number
of California residents. Any funds that, if deposited in tlte Clean Money
Fund,'would cause the balance in thefund to exceed this amount shall be
irrevqcably transfeted to the General Fund.
Article 12. Limits on contributions to
C and idate- C ont rol led B allot Me as ure s
91137. Limits on Contributions to Candidate-Conh"olled Ballot
Measure Committees
(a) A ballot measure committee not controlled by a candidate
for elective state ffice or an elected state offcer is not subject to the
provisions ofthis section. A ballot measure comntittee.becomes subiect to
the provisiofis ofthis section once it becomes controlled by one or'more
candidates for elective state ffice, as defined in Section 82016. However,
a ballot measure committee controlled by an individual who ceases to be
a candidate as defined in Government Code Section 82007- is no longer
subject to the provisions ofthis section.
(b) No person ihatl make a contribution or contribulions totaling
in excess of ten thousand dollars (510,000) to any committee that is
establishedfor the purpose ofsupporting or opponing a state or local ballot
measare and that is.conftolled by a candidaie for elective state oJrtce or
an elected state offcer. This contribution limit shall apply as an aggregate
limit upon all contributions made by any person to all ballot measure
committees controlled by the same candidate for elective state ffice or
the same elected state fficer, even if those committees are established
for the purpose of supporting or opposing dffirent statu or local'ballot
measures, and even ifone or more oJ those ballot measuTe committees are
controlled by more than one candidate for elective state offce.or elected
state fficers.
(c) A ballot measure committee that is primarily.formed to support
or oppose a ballot measure or measures and that is controlled by a
candidatefor elective stute offce or an elected state fficer is subject to the
postelection fundraising limitations of Section 85316. A general purpose
ballot measure committee is not subject to the post-election fundraising
limitaticns of Government Code Section 85316.
Article 13. Limits on'Contriblnions or Inilependent Expenditures by
Corporations in Connection with State Candidate Elections
91138. Limits on Contributions or Independent Expenditures by
Corporations in Connection with State Candidate Elections
. (a) Except as provided in subdivision (c) of this section, and except
for direct contributions ptusuant to subdivision (a) of.Section 91101, it is
unlav,fulfor any national ot stqte bank orfor any corporation incorporated
undel the laws of this or any other state or any foreign cou.ntry, to make
a contribution or expenditure in connection with the election of any
candidate for elective state ffice. It ihall likewise be unlawful for any
candidate, committee, or other person knowingly to accept or to receive
eny contribution prohibited by this section, or .for any fficer or any
director ofany corporation or ofany national or state bankto consent to
any contribution or expenditure by the corporation or national or stote
bank, as the iase ntay be, prohibited by this section.
(b) For purposes of this section, the tefm "contribution or
expenditure" includes a contribution, expenditwre or independent
expenditure, as those terms are defned in Sections 82015,82025 and
82031, and also includes any direct or indirect payment, distribution, loan,
atlvance, deposit, or gift ofnoney, or any services, or aiything ofvalue
provided to any candidate or committee (including any political party
committee) in connection with any election for elective state ofJice, except
that nothing in this section shall prohibit (1) a loan ofmoney by a national
or state bank made in accordance with the applicable banking laws and
regulalions and in the ordinary course ofbusinesi; or (2) the payment or
receipt ofinterest.earnings, stock or other dividends on investments v)here
the interest or dividends are received in accordance with the applicable
banking laws and in the ordinary course oJ business.
(c) For purposes of this section, the term "contribution or
expenditure" shall not include
(1) communications by a bank or corporation to its stockholders and
executive or administrative personnel and their immediate fantilies on a4,
subject:
(2) nonpartisan registration and get-out-the-vote campaigns
by o bank or corporation aimed at its stockholders and executive or
administrative personnel and their immediate families ; and
' (3) the establishment, administration, and solicitation by a bank or
.corporation of contibutiois to a separate segregated fund tb be utilized
for making political contributions or expenditures, provided that thefund
may consist only of voluntary. contributions solicited from individuals who
are either stockholders, members or employees of the bank or corporation,
and their i m m ed i a ! e fa m i I i es.
(d) It shall be unlawful for any separate segregated fund established
in accordance with paragraph (3) of subdivision (c) to make a contribution
or expenditure by utilizing money or anything o-f value secured by physical
force, job discrimination, fnancial reprisals, or the threat of force, job
discrimination, orfnancial reprisal; or by dues,fees, or otherfunds required
as a condition of employment; or by funds qbtained in any commercial
transaction. It shall be unlawful for any person soliciting an employee
for a contribution to any separate segregatedfund (l) tofail to inform the
employee ofthe political purposes ofthefund at the time ofthe solicitation;
apd (2) tQfail to inform the employee, at the time ofthe solicitation, ofhis or
her right to refuse.to so contribute without any reprisal.
(e) This seQtion shall not prevent a trade association or a separate
segregated fund established b1t a trade association .from soliciting
contributions from the stockholders and executive or administrative
personnel of the member corporations o.f the trade association and the
immediate families of the stockholders or personnel to the extent that
the solicitation of the stockholders and personnel, and their immediate
families, has been separately and sj:ecifcally approved by the membsr
corpbration involved, and the rnember corporation does not approve any
such solicitation by more than one.such trade association in any calendar
year.
(fl For purposes ofthis section, the term "executive or administrative
personnel" means individuals employed by a corporationwho are paid on a
salary, rather than hourly, basis and who have policymaking, managerial,
profes siona I, or sup ervis ory r es po ns ib ilit ie s.
(g) The Commission shall promulgate regulations intplementing
the reqilirentents of this section and governing the administration and
solicitation of contributions to separate segregated funds established
in accordanc'e with paragraph (3) of subdivision (c). The Commission's
regulations shall conform to the intent of the voters in adopting this
section and shall, to the maximum extent practicable, be consistent with
the regulations adopted by the Federal Election Commission interpreting
1801 Text of Proposed Laws* * *
(PROPOSITION 89 CONTINUED)* * *TEXT OF PROPOSED LAWS
and implementing the comparable provisions of the Federal Election
Campaign Act.
Article 14. Limits on Contributions or Expenditures by Corporations
in Connection'ryith State Ballot Measure Elections
91139. Limits on Contribtttions or Expenditures by Corporations in
Connectiqn wilh Stak BAllot Measure Elections
(a) Except as provided in subdivision (c), it is unlawful for any
national or state bank dr for any corporation incorporated under the laws
of this or any other state or any foreign country, to make contributions
or expenditures to support or oppose the qualification, passage or defeat
of a state ballot meosure that in the aggregate exceed $10,000 for or
against any statewide ballot measure. It shall likewise be unlawfttl for any
candidate, committee, or other person knowingly to accept or to receive
any conbibution prohibited in excess of the linhits established by this
section, or for any qfficer or any director of any corporation or of any
national or state bank to consent to ant contribution or expenditure by
the corporation or national or state baik, as the case may be, p;y6ftiSi1[4
by this section.
(b) For purposes of this section, the term "contribution or
expenditure" .includes a coniribution, expenditure or independent
expenditure, as,those terms are defned in Sections 82015, 82025 and
82031, and also includes any direct or indirect payment, distribution, loan,
advance, deposit, or gift o-f money, or any services, or anything ofvalue
provided to any candidate or committee, including any political party
committee, to support or oppose the Qualifcation, passage or defeat of a
state ballot measure, except that nothing in this section shall prohibit (l)
a loan of money by a national or state bank made in accordance with the
applicable banking laws and regulatioils and in the ordinary course of
business, or (2) the payment or receiptbfinterest eernings, stock or other
dividends on investments where the interest or dividends are received'in
accordance with the applicable banking laws and in the ordinary cottrse
of business.
(c) For purposes of this section, the term "contribution or
expenditure" shall not include (l ) communications by a bank or corporation
to its stockholders and executive or administrative personnel and their
immediate families on any subject, (2) nonpartisqn registration and get-
out-the-vote campaigns by a bank or corporation aimed at its stockholders
and executive or administrative personnel and their immediate families,
or (3) the establishment, administration, and solicitation by a bank or
corporation of contributions to a separate segregated fund to be utilized
for making political contributions or expenditures, provided.that thefttnd
shall consist only ofvoluntary contributions solicited.fi'om individuals who
are either stockholders, members or employees ofthe bank or corporation,
and their immediate fomilies.
(d) It shall be unlawful for any seperate s eglegated fitnd establilshed
in accordance with paragraph (3) ofsubdivision (c) to make a contribution
or expenditurb.by utilizing money or anything ofvalue secured by physical
force, job discrimination, fnancial reprisals, or the threat offorce, job
discrimination, or.financial reprisal; or by dues, fees, or other funds
required as a condition of employment: or by funds obtained in any
commercial transaction. It shall be unlawful for any person soliciting an
employee for a contribution to an)) separate segregated fund 1l) to fail
to inform the employee of the political purposes of the fund at the time
of the solicitation; and (2) to fail to inform the employee, at the time of
the solicitation, of his or her right to refuse to so contribute without any
reprisal. \
(e) This section shall not prevent a trade association or a separate
segregated fund established by a trade association from soliciting
contributions from the stockholders and executive or administrative
personnel of the member corporations of the tade association and the
immediate families of the stockholders or personnel to the extent that thb
solicitation ofthe stockholders and personnel, and their immediatefamities,
has been separately and specifcally approved by the member corporation
involved, and the member corporation does not approve any such solicitation
by more thcn one such trade association in any calendar year.
(l) For purposes ofthis section, the term "executive or administrative
personnel " means individuals employed by a corporationwho are paid on a
salary, rather than hourly, basis and who ltave policymaking, managerial,
profe s s ional, o r super vis o ry res pons ibilities.
(g) The Commission shall promulgate regulations implementing
the requirements of this section and governing the administralibn and
solicitation of contributions to s.eparate segregated funds established
in accordance with pat agraph (3) of subdivision (c). The Commission's
regulations shall conform to the intent of the voters in adopting this
section and shall, to the maximum extent practicable, be consistent with
the regulations adopted by the Federal Election Commission interpreting
and implementing the comparable provisions of the Federal Election
Campaign Act.
Article 15. Nonprofit Corporation Exemption
91,140. Nonprofit Corporations Exempt from Prohibitions and
Limits on Political Contributions or Expenditures
(a) The prohibitions and limits on contributions or expenditures set
forth in Sections 91138 and 91139 shall not apply to'a quaifed nonproft
corporation that has all of the following characteristics:
(l) It does not qualify as or engage in any of the activities of a
business entity, as defined in Section 82005;
(2) It has:
(A) No shareholders or other persons, orher &an employees and
creditors with no ownership intereit, ffiliated in any way that could allow
them to make a claim on the organizationb assels or earnings; and
(B) No persons who are olfered or who receive any beneft that is a
disincentive for them to disassociate themselves with the corporation on
the basis ofthe corporation's position'on a political issue.
B) h:
(A) Iltas not established by a business entity:
(B) Is not "ffiliated" with a business entity within the meaning of
Seclion 150 ofthe Corporations Code;
(C) Is not iomposed of members thot are business entities or that
engage in the activities of a business entity;
1d1 Ooes not directly or'indirectly accept donations ofanything of
valuefrom business eniities; and
, (4) If unable, for gootl "or,ri, to demonsttate through accounting
records that subparaglaph (D) ofparagraph (3) is satisfed,.has a wiitten
pol[cy against accepting donations from business entities; and
(5) It is described in 26 U.S.C. 9501(a) and (c).
(b) Whenever o qual,ifed nonproft porporation solicits donations,
the solicitation shall inform potential donors that their donations may be
used for po I i t ita I pu r poses.
(c) Qualifed nonproft corporations possessing all of ihe
chqracteristics enumerated in subdivision (a) remain subject to all.other
applicable requirements and limitations of this title, including those
provisions requiring disclosure of any contributions or expenditures
permitted by this section.
Article 16. Administration
91141. (a) Upon a determination that a candidate has met all the
requirements for becoming a participating candidate as provided for in
this act, the Commission shall issue to the candidate a card, known as the
"Clean Money Debit Card," and a "line of debit" ent,itling the candidates
and members of the candidate's staff to draw Clean Money funds from a
Commission account to payfor all campaign costs and expenses up to the
amount of Clean Money funding the candidate has received.
(b) Neither a participating candidate nor any other person on behalf
of a participating candidate shall pay campaign costs by cash, check,
money order, Ioan, or by any otherfnancial means other than the Clean
Money Debit Card, except.fbr contributions receivedfrom political party
committees in accordance with Section.9ll23.
(c) Cash amounts of one hundred dollars (S I 00) or less per day may
be drawn on the Clean Money Debit Card and used to pay expenses ofno
more than twenty-fve dollars ($25) each. Records ofall such expenditures
shall be maintained and reported to the Commission.
91142. If the Commission deterkines that there are insfficient
funds in the program to fund adequately all candidates eligible for Clean
Money funds, the Commission shall reduce the grants proportionately to
all. eligible candidates. If the Commission notifes a candidate that the
Clean Moneyfunds will be reduced and the candidate has not received any
Clean Mone! funds, the candidate may decide to be a nonparlicipating
* * *Text of Proposed taws 1181
TEXT OF PROPOSED LAWS * * *
candidate. If a candidate has already received Clean Money funds or
wishes to start receiving such .funds, a candidate who wishes to collect
contributiofis may do so in amounts up to the contribution limits provided
for nonparticipating candidates but shall not collect more than the total
of Clean Money funds that the candidate was entitled to receivB had there
been sfficientfunds in the program less the amount of Clean.Moneyfunds
that will be or have been provided. If at a later point, the Commission
determines that adequatefunds have become available, candidates, who
have not raised private funds, shall receive the funds owed to them.
9 1 143. (a) At the end of the primary election period, a participating
candidate who has received funds pursuant to Article 5 shall return to
the fund all funds in'the candidate's campaign account above an amount
sfficient to pay any unpaid bills for expenditures made during the
primary election period and for goods or services directed to the primary
election.
(b) At the end of the general election period, a pa.rticipating
candidate shall return to the fund all funds in the candidctte's campaign
account above an amount sltffcient to pay any unpaid billsfor expenditures
made before the general election andfor goods or services directed io the
general election.
(c) A participating candidate shall pay all uncontested and unpaid
bills referenced in this section no later th:an thirty days after the primary
or general election. A participating candidate shall make monthly reports
to the commission concerning the status of the dispute over any contested
bills. Any-funds in a candidate's campaign account after payment ofbills
shall be returned promptly to the fund.
(d) If a participating candidate is replaced, and the replacement
candidate files an oath with the Secretary of State certifying that he or
she shall assume all responsibility for compliance with the provisions of
this chapter concerning the current status and ongoing administration of
lhe campaign account, and further certifying that he or she will faithfuily\tomply wilt all provisions af this chapter applicable the participating
candidate status he or she is assuming as a replacement candidate, the
campaign account ofthe participating candidate shall be transferred to the
replacement candidate and the commission shall certify tl.te replacement
candidate as a participating candidate with the same status, rights and
obligations as the replaced candidate. If the replacement candidate does
not file such an oath, the campaign account shall be liquidated and all
remaining funds returned to the fund.'
Article 17. Cost ofLiving
91144. The Commission shall adjust. the contribution limitations,
spending limits, seed money provisions, funding amounts provided and
the Clean Money Fund provisions in January of every odd-numbered
year to reflect any increase or decrease in the Consumer Price Index and
the iicrease in registered voters. Those adjuslments shall be roilnded to
the nea.rest ten dollars ($10) for the seed money provisions, one hundred
dollars ($100) for the limitations on contributions, and one thousand
dollars ($ I ,000) for the Clean Money provisions.
91 145. On or before December 6 of each year ending in one, the
Commission shall prepare and provide to each Member of the Legislature
and to the standing committees in the Assembly and the Senate with
jurisdiction over elections a report containing a review and analysis
of the functioning of the Clean Money Fund and the Commission's
recommbndations qs to whether additional cost of living adjustments,
beyond those specifed in Section 91144 should be made to the spending
limits, seed money provisions, funding amounts provided and the Clean
Money Fund provisions of this chapter, and suggesting other changes
thai are advisable to further the purpose of this act. The Commission's
recommendations shall be based upon an analysis of the disclosttres of
campaign contributions ,and expenditures made by non-participating
candidates in the preceding ddcade and other campaign fnancing
informatioin available, and this analysis shall be set forth in detail in
the report. Amendments to this chapter made in accordance with the
Commission's recommendation may be adopted by a vote of 55 percent of
both houses ofthe Legislature.
Article 18. Enforcement
91146. (a) It is unlawful for participating crindidates or their
agents to knowingly accept more Clean Money benefts than those to which
they are entitled, spend more than the amount ofClean Moneyfunding they
have received, or misuse such benefts or Clean Money funding.
(b) Any person, including an individual specifed in Section 91115,
who knowingly or willfully violates any provision of this chapter is guilty
ofa misdemeanor. Any person who knowingly or willfully causes any other
person to violate any provision ofthis chapter, or who aids and abets any
other person in the violation ofany provision ofthis chapter, shall be liable
uider the provisions ofthis article.
(c) Prosecution of a violation of any provision of this chapter shall
be commenced within four years after the date of the violation.
91147. (a) No person convicted of a misdemeanor under this
chapter shall act as a lobbyist, stqte contractor, runfor elective offce, or
be eligible for appointed ffice or commission appointment for a period
offve years following the date ofthe conviction unless the court at the
time of sentencing specifcally determines that this provision shall not be
applicable. Non-candidate persons convicted for violations of this chapter
shall be prohibited from receiving compensation for any electiongering
activities or.from.firms that receive compensation for election activities
for a period offve years fi)llowin! the date of conviction unless the court
at the time ofsentencing specifically determines that this provision shall
not be applicable.
(b) If the court determines that the violation was intentional and
involved qn amount that had or could have been expected ti have a
material effect on the outco/ne ofthe election, the candidate may befned
up to twenty-rtve thousand dollars ($25,000), or imprisonedfor up tofive
yedrs, or both. Any person who is found guilty of any criminal violation
of this act shall be sentenced to at a minimum of at least one day and one
nighr in jail.
(l) If a candidate is convicted of a misdemeanor violation of any
provision of this chapter, the court shall make a determination as to
whether the violation had a material effect on the outcome ofthe election.
If the court finds such a material effect, or that a participating candidate
spent or incurred more than l0 percent above the Clean Moneyfunding'the
candidate received from the Clean Money Fund, in qddition to any f.nes
specified in this subdivision, the candidate shall repay to the Clean Money
Fund an amounf up to I0 times the value of tlie excess, and:
(A) if the conviction becomes fna! before the date of the election,
the votes for the candidate shall not be counted, and the election shall be
determinbd on the basis bfthe votes castfor the other candidates in that
ru('e;
(B) if the conviction becomes fnal after the date of the election; and
ifthQ candidate was declared to have been elected, then the candidate shall
not assume ffice, the ffice shatl be deemed vacant and shall be flled as
otherwise provided by law;
(C) ifthe conviction becgmesfnal after the candidate has assumed
ffice, then the candiilate shall be removed from ffice, the ffice shall be
cleemed vacant and shall beflled as otherwise provided by law; and
' (D) the person convicted shall be ineligible to run for any ffice for
a period offve years after the date of the conviction.
(2) Ifa participating candidate spends or incurs more than the Clean
Money funding the candidate is given, and if it is determined by a court
not to be an atnount that had or could have been expected to have had a
material effect on the butcome of the e.lection, then the candidate shall
repay to the Cleatt Money Fund an amount equal.to the excess.
(c) fhe same penalties as provided in subdivision (b) of Section
91146 aid Section 91147 shall apply for determinations nade by the
Commission, subject to court review.
SEC. 2. Section 13207 ofthe Elections Code is amended to read:
13207. (a) There shall be printed on the ballot in parallel columns
all of the following:
(1) The respective offices.
, (2) Thenamesofcandidateswithsufficientblankspacestoallowthe
voters to write in names not printed on the ballot.
(A) Underneath the nar4e of each candidate shall st(rte either: "This
candidate is a pa:rticipant in the public campaignfunding system." or l'This
candidate is not o participant in the public campaignfunding system."
(B) The Fair Political Practices Commission shall determine
which candidates in every election covered by Chapter 12 (commencing
1821 Text of Proposed [aws* * *
(PROPOSITION 89 CONTINUED)* * * TEXT OF PROPOSED LAWS
with Section 91015) of the Government Code are participating or
nonparticipoting candidates. The Fair Political Practices Commission
shall provide to the Secretary of State the information necessary to satisf)
the requirements of this paragraph (2) in a manner that will permit the
timely preparation and printing of the ballot. The Secretary of State shall
then immediately transmit the information to county election fficials.
(3) Whatever measures have been submitted tb the voters.
(b) In the case ofa ballot which is intended for use in a party primary
and which carries both partisan offices and nonpaiti.un offices, a verticil
solid black line shall divide the columns containing partisan offices, on the
left, from the columns containing nonpartisan offices, on the right.
(c) The standard width of columns containing partisan and
nonpartisan offices shall be three inches, but an elections official may
vary the width of these columns up to 10 percent more or less than the
three-inch standard. However, the column containing presidential and vice
presidential candidates may be as wide as four inches.
(d) Any measures that are to be submitted to the voters shall be printed
in one or more parallel columns to the right of the columns containing the
names ofcandidates and shall be ofsufficient width to gontain the title and
summary of each measure. To theright of each title and summary shall be
printed, on separate lines, the words "Yes" and "No."
SEC. 3. Section 82016 of the Government Code is amended to
read:
82016. ControlledCommittee
(a) "Controlled committee" means a committee that is controlled
directly or indirectly by a candidate or state measure proponent or that
acts jointly with a candidate, controlled cornmittee, or state measure
proponent in connection with the making ofexpenditutes. A candidate or
state measure proponent controls a committee ifhe or she, his or her agent,
or any other committee he or she controls has a significant influence on the
actions or decisions of the committee.
(b) Notwithstanding subdivision (a), a political party committee, as
defined in Section 85205 9 1057, is not a controlled committee.
(c) For purposes of Section 91137, a candidate shall be deemed to
control a ballot measure committee if any of the following, conditions are
met:
(1) Decisions on how the committee's funds are to be expended are
effectively directed by or coordinated with the candidate or his or her
agent;
(2) The candidate personally solicits contributions to the committee,
either telephonically or through direct oral communications with donors;
or
(3) fhe candidate appears in broadcast advertisements paidfor by
the committee at the candidate's behest.
SEC. 4. Section 82025 of the Government Code is amended to
read:
82025. Expendirure
(a) "Expenditure" means a payment, a forgiveness of a loan, a
payment of a loan by a third party, or an enforceable promise to make a
payment,.unless it is clear from the surrounding circilmstances that it is .
not made for political purposes.
(b) "Expenditure" includes'any monetary or nonmonetary payment
made by any person thst is used:
(1) For any communications that expressly advocate the nontination,
election or defeat of a clearly identifed candidate or csndidates, or the
qualifcation. passage or defeat ofa.clearly identified ballot measure or
measrtres; or
(2) For any broadcast, cable, or satellite communications that 1A)
refer to a clearly identifed candidatefor elective state ffice or to a state
ballotmeasure that has qtralifed to appear on the ballot, (B) are madewithin
30 days before a primary election or 60 days before a general, special, or
'special runoff electionfor the ffice sought by the candidate or at which the
state ballot rnettsure will be voted on, and (C) can be received by 50,000 or
more persons in the electoial jurisdiction in which the candidate or ballot
measure will be voted on. A candidate is "clearly identifed" within the t
meaning of this subdivision if the contmunication states his or her: name,
ntakes unambiguous reference to his or her olfce or status as a candidate,
or unambiguottsly describes him or her in any manner. A state ballot
measure is "clearly identifed".within the meaning of this subdivision if
the communication stetes a proposition number, fficial title, or popular
name associated with the measure, or if the communication refers to the
specific subject matter ofthe measure and either states or refers to thefact
that the measure is before the people for a voie.
(c) Notwithstanding subdivision (b), "expenditure" does not include
the costs for: (A) a communication appearing in a bona fide news story,
commentary, or editorial distributed through thefacilities ofany regularly
published newspaper, magazine, periodical of general circulation, or
broadcasting station, .unless the facilities are owned or controlled by
any political parly, commitlee, or candidate; 1B) a communication
which constitutes a candidate debate or forum, or solely promotes such
a debate or forum, and is made by or on behalf of the person or entity
sponsoring the debate or forum; (C) a communication in a regularly
published newsletter or regularly published periodical, whose circulation
is limited to en organization's nembers, employees, shareholders, other
ffiliated individuals, and those who request or purchase the publication;
or (D) any other communications exempted undbr sttch regulations as the
Commission may promulgate to ensure the appropriate implementation of
this section consistent with the reqtirements ofthis subdivision.
' (d) "Expend,iture" does not include a candidate's use of his or her
own money to pay for either a filing fee lor a declaration ofcandidacy or
a candidate statement prepared pursuant to Section 13307 ofthe Elections
Code.
(e) An expenditure is made on the date the payrnent is made or on the
date qonsideration, if any, is received, whichever is earlier.
SEC. 5. Secticin 82031 of the Government Code is amended to
read:
82031. Independent Expenditure
. "lndependent expenditure" means an expenditure, as defned in
Section 82025, subdivision (b), made by any person in-eormeetion-witFa
i
i
@ion but which is not made to, or atthe
behest of, or in coordination with the affected candidate or committee.
SEC. 6.' Section 85203 ofthe Government Code is repealed.
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SEC. 6.1. Section 85205 of the Gover.nment Code is repealed.
oftHffie
SEC. 6.2. Section 85206 ofthe Government Code is repealed.
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SEC. 6.3. Section 85300 ofthe Government Code is repealed.
SEC. 6.4. Section 85302 ofthe Government Code is repealed.
.
doltars-{$Geee@ion:
hgmorc
* * * Text of Proposed laws I 183
TEXT OF PROPOSED LAWS * * *
@ion:
SEC. 6.5. Section 85303 ofthe Government Code is repealed.
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SEC. 6.6. Section 85304 ofthe Government Code is repealed.
used only to defray thoss attorney fees and other ielate+{egal eosts;
eontmissian;
SEC. 6.7. Section 85305 ofthe (lovernment Code is repealed.
oFs'eetioftS$gL
SEC. 7. Section $5306 of the Government Code is amcnded to
read:
85306. Tt'ansfer oJ Fttnds front Ona Controlled Contnillcc to
Controlled Contmittee of Same Canclidate; Attribution to Specific
Contributors; Funds in Possession Before Spebifed Dates
ifig
irsaetio,rS$effiS0*
@ (a) A candidateforelective
state office, other than a candidate'for statewide elective office, who
possesses campaign funds on January l,200l, may use those funds to seek
elective office without attributing the funds to specific contributors.
@ (b) A candidate for statewide
elective office who possesses campaign funds on November 6,2002, may
use those funds to seek elective offiie without attributing the funds to
specific contributors.
(c) Notwithstanding Section 91137, a candidate may transferfunds
without limitation .from one bollot measure comntittee controlled by the
candidate to another ballat measwe committee conftolled by the same
candidate.
SEC. 8. Section 85314 ofthe Covernment Code is repealed.
SEC. 8.1. Section 85317 ofthe Government Code is repealed.
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SEC. 8.2. Section 85318 ofthe Govefnment Code is repealed.
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SEC. 8.3. Section 85400 ofthe Government Code is rppealed.
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SEC. 8.4. Section 85401 ofthe Government Code is repcaled.
speeme*nrS'eet+or*
184 I Text of Proposed Laws * * *
(PROPOSITION 89 CONTI NT]ED)* * * TEXT OF PROPOSED LAWS
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SEC. 8.5. Section 85402 ofthe Government Code is repealed.
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SEC. 8.6. Section 85403 ofthe Government Code is repealed.
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SEC, 8.7. Section 85501 ofthe Government Code is repealed.
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oropeose-otffies:
SEC. 8.8. Section 85600 ofthe Government Code is repealed.
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SEC. 8.9. Section 85601 oithe Government Code is repealed:
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SEC. 8.10,. Section 85702 ofthe Government Code is repealed.
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SEC.9. Section 23151 ofthe Revenue and Taxation Code is amended
to read:
23151. Imposition ofprivilege tax; Rates
(a) With the exception of banks and linancial corporations, every
corporation doing business r.vithin the limits ofthis state and not expressly
exempted from taxation by the provisions ofthe Constitution ofthis state
or by this part, shalI annually pay to the state, for the privilege ofexercising
its corporate franchises within this state. a tax according to or measured by
its net income, to be computed at the rate of7.6 percentupon the basis ofits
net income for the next pr'eceding income year, or if greater,,the minimum
tax specified in Section 23153.
' (b) For .calendar or fiscal years ending after June 30, 1973,
the rate oftax ihall be 9 percent instead of 7.6 percent as provided by
subdivision (a1.
(c) For calendar or fiscal years ending in 1980 to 1986, inclusive, the
rate oftax shall be 9.6 percerit.
(d) For calendar or fiscal years ending in 1987 to 1996, inclusive, and
for any income year beginning before Jsnuary l, 1997, the tax rate shall
be 9.3 percent.
(e) For any income year beginning on or after January l, 1997, the tax
rate shall be 8.84 percent. The change in rate provided in this subdivision
shall be made without proration otherwise required by Section 24251.
(0(1) .For the first taxable year beginning on or after Jantary 1,
2000, the tax. imposed under this section shall be the sum ofboth ofthe
following:
(A) A tax according to or measured by net income, to be computed
at the rate of 8.84 percent upon the basis of the net income for the next
preceding income year. but not less than the minimum tax specified in
Section 23153.
(B) A tax according to or measured by net income, to be computed at
the rate of 8.84 percent upqn the basis ofthe net income for the first taxable
year beginning on or alter'January I, 2000, but not iess than the minimum
tax specified in Section 23153.
(2) Except as provided in paragraph (l), for taxable years beginning
on or after January 1, 2000, the tax imposed under this section shall be a
tax according to or measured by net income, to be computed at the rate of
8.84 percent upon the basis ofthe net income for that taxable year, but not
less than the minimum tax specified in Section 23153.
(g)(1) For the fist taxable year beginning on or after January 1,
2007, the tax imposed under this section shall be the sum. of both of the
Jbllowing:' (A) A tax according to or measured by,net income,)to be comptrted
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 mininum tax specifed i.n
Section 23153.
(B)' A tax according to or measured by net inconte, to be computed at
the rate of9.04 percent upon the basis ofthe net incomefor thefrst taxable
year beginning on or after Janttary l, 2007, but not less than the minimunt
tax specified in Section 23153.
(2) Excbpt as provided in paragraph (1 ), for taxable years beginning
on or after January l, 20;07, the tax imposed under this section shall be a
tax according to or measured by net income, to be computed at the rate of
.9.04 percent upon the basis of the net income for that toxable year, but not
less than the minimum tdx specifed in Section 23153.
SEC. 9.1. Section 23181 of the Revenue and Taxation Code is
amended to read:
23181. Annual tax on banks
(a) Except as otherwise provided herein, an annual tax is hereby
imposed upon every bank doing business within the limits of this state
according to or measuled by its net income, upon the basis ofits net income
for the next preceding income year at the rate provided rinder Section
23 I 86.
(b) If a bank commences to do business and ceases doing business
in the same taxable year, the tax for such taxable year shall be according
to or measured by its net income for such year, at the rate provided under
Section 23186.
(c) With respect to a bank, other than a bank described in subdivision
(b), which ceases doing business after Docember 31, 19'72, the tax fot the
taxable year ofcessation shall be:
(1) According to or measured by its net income for the next preceding
income year, to be computed at the rate prescribed in Section 23186, plus
(2) According to or measured by its net income for the income year
* * *Text of Proposed Laws I 185
TEXT OF PROPOSED TAWS * * *
B
during which the bank ceased doing business, to be computed at the rate
prescribed in Section 23186.
(d) In the case of a bank which ceased doing business before January
l, 1973, but dissolves or withdraws on such date or thereafter, the tax for the
taxable year ofdissolution or withdrawal shall be according to or measured
by its net income for the income year during which the bank ceased doing
business, unless such income has previously been included in the measure
oftax for any taxable year, to be computed at the rate-prescribed under
Section 23186 for the taxable year ofdissolution or withdrawal.
(e) Commencing with income years ending in 1980, every bank shall
pay to the state a minimum tax (determined in accordance with Section
23153) or the measured tax imposed on its income, whichever is greater.
(f)(l) For the first taxable year beginning on or after January l,
2000, thp tax imposed under this section shall bo the sum ofboth ofthe
lollowing:
(A) A tax according to or measured by net income, to be computed
at the rate provided under Section 23186 upon the basis ofthe net income
for the qext preceding income year, butdnot less than the minimum tax
specified irf Section 23153.
(B) A tax according to or measured by net income, to be computed
at the rate provided under Seclion 23186 upon the basis ofthe het income
for the first taxablb year beginning on or after January l, 2000, but not less
than the minimum tax specified.in Section 23153.
(2) Except as provided in paragraph (1), for taxable years beginning
on or after January l, 2000, the tax imposed under this section shall be
a tax according to or measured by net income, to be computed at the
rate provided under Section 23186 upon the basis of the net income for
that taxable year, but not less than the minimum tax specified in Section
23t53. I
(g)(l) For the frst taxable year beginning on or after Janrtary l.
2007, the tax imposed under this section shall be the sum of both of the
following:
(A) A tax according to or measttred by net income, to be computed
at the rate of l,1.04 percent upon the basis ofthe net'incomefor the next
preceding income year, but .not lbss than the minimunt tqx specffied in
Section 23153.
(B) A.tax according to or measured by net income, to be computed
at the rate'of 11.04 percent upon the ba.sis of the net incomefor thefirst
taxable yeitr beginning on or after Janttary 1, 2007, but not less than the
minimum tax specified in Section 23153.
(2) Except as provided in paragriph (I ). for taxable years beginning
on or after January l, 2007, the tax imposed under this section shall be a
tax according to or measured by net income, to be computed at the rate of
1 1.04 percent upon the basis ofthe net incomefor that taxable )tear, but not.
less than the minimum tax specified in Section 23153-
SEC. 9.2. Section 23183 of the Revenue and Taxation Code is
amended lo read:
23183. Financidl corporations;. Annual tax; Measurement by
income; Rate
(a) For taxable years beginning before January l, 2000, an annual tax
is hereby imposed upon every financial corporation doing business within
the limits ofthis state and taxable under the provisions ofSection 27 of
Article XIII ofthe Constitution ofthis state, for the privilege ofexercising
its corporate franchises within this state' according to or measured by its
. net incomg, upon the basis of its net income for the next preceding incorne
year at the rate provided under Section 23186.
(b) For purposes of this article, the term "financial corporation"
does not include any corporation, including a wholly owned subsidiary of
a bank or bank holding company, if the principal business activity of such
entity consists ofleasing tangible personal propel'ty.
(cXl) For the first taxable year beginning on or after January 1,
2000, the tax imposed under this section shall be the sum of both of the
lollowing:
(A) A tax according to or measured'by net income, to be computed
at the rate provided.under Section 23186 upon the basis ofthe net income
.for the next preceding income year, but not less than the minimum tax
specified in Section 23153.
(B) A tax according to or measured by net income, to be computed
at the rate provided under Section 23186 upon the basis ofthe net income
for the first taxable year beginning on or after January l, 2000, but not less
186 I Text of Proposed Laws *'* *
than the minimum tax specified in Section 23153.
(2) Except as provided in paragraph (1), for taxable years beginning
on or after'January l, 2000, the tax imposed under this section shall be
a tax according to or measured by net income, to be computed at the
rate provided under Section 23186 upon the basis ofthe net income for
that taxable year, but not less than the minimum'tax specified in Section
23t53.
(d)(1) For the frst taxable year beginning on or after January I,
2007, the tax imposed under this section shall be the sum of both of the
following:
' (A) A tax according to or measured by net income, to be compuled
at the rate of 11.04 percent upon the basis ofthe net incomefor the next
preceding income year, but not less than the minimum tax'specifed in
Section 23153.
(B) 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 frst
taxable year beginning on or after January l, 2007, but not.less than the
minimum tax specifed in Section 23153.
(2) Except as provided in paragraph (1 ), for taxable years beginning
on or after January 1, 2007, the tax imposed under this section shall be a
tax according to or measured by net income, to be computed at the rate of
I 1.04 percent upon the basis of the net incomefor that taxable year, but not
less than the minimum tux specifecl in Section 23153.
SEC. 9.3. Section 23501 of the Revenue and Taxation Code is
amended to read:
23501. .Annual tax imposed; Rates
(a) There shall be imposed upon every corporation, other than a
bank, for each taxable year, a tax at the rate of 7.6 percent upon its net
income derived from sources within this state on or after January 1,1937,
other than income for any period for which the corporation is subject to
taxation under Chapter 2 (commencing with Section 23101), according to
or measured by its net income.
(b) For calendar or fiscal years ending after June 30, 1973, the rate of
tax shall be 9 percent instead of7.6 percent as provided by subdivision (a).
(c) For calendar or fiscal years ending after December 31, 1979, the
rate oftax shall be the'rate specified for those years by Section 23151.
(d) For calendar or fscal years ending after December 3 l, 2006, the
rate oftax shall be the rote specifedfor those years by Section 23151.
SEC. 9.4. Section 23811 of the Reveriue and Taxation Code is
amended to read:
. 238 I l. Tax on passive investment income attributable to Calfornia
sources
Except as otherwise provided in this section, there is hereby imposed
a tax on passive investment income attributable to California sources,
determined in accordance with the provisions ofSection 1375 ofthe Internal
Revenue Code, relating to tax imposed on passive investment income, as
modified by this section. For taxable years beginning on or after January
I, 2007, the tax imposed on passive investment income shall be increased
.front 1.5 percent to.l.66 percent oftaxable net passive investment income
for the next preceding income year for corporations with over $50 million
dollars in total receipls.
, (a) The tax imposed under this section may not be imposed on an
"S corporation" that has no excess net passive income for federal income
tax purposes determined in accordance with Section 1375 oTthe Internal
.Revenue Code.
(b)(l) The rate oftax shall be equal to the rate oftax imposed under
Section 23151 in lieu ofSection ll(b) ofthe Internal Revenue Code.
'(2) In the case of an "S corporation" that is also a financial
corporation, the rate oftax specified in paragraph (1) shall be increased by
the excess ofthe rate imposed under Section 23183 over the rate imposed
under Section 23151.
(c) Sectiol 1375(c)(l) of the Internal Revenue'Code, relating to
' credits, is modified to provide that the tax imposed under subdivision (a)
may not be reduced by any credits allowed under this par.t.
(d) The'term "subchapter C earnirigs and profits" or "accumulated
earnings and profits" as used in Section 1375.ofthe Internal Revenue Code
shall mean the "subchapter C earnings and profits" of the corporation
attributable to California sources determindd under this part, modified as
provided in subdivision (e).
(PROPOSITION 89 CONTINUED)* * * TEXI- OF PROPOSED IAWS
(e)(l) In the case of a corporation that is an "S corporation" for
purposes ofthis part for its first taxable year for which it has in effect a valid
federal S election, there shall be allowed as.a deduction in determining
that corporation's "subchapter C earnings and profits" at the close ofany
taxable year the amount of any consent dividend (as provided in paragraph
(2)) paid after the close ofthat taxable year.
(2) In the event there is a determination that a corporation described
in paragraph (l) has "subchapter C earnings and profits" at the close of
any taxable year, that corporation shall be entitled to distribute a consent
dividend to its shareholders. The amount ofthe consent dir;idend rnay not
exceed the difference between the corporation's "subchapter C earnings
and profits" determined under subdivision (d) at the close of the taxable
year with respect to which the determination is made and the corporation's
"subchapter C earnings and profits" for federal. income tax purposes at
the same date. A consent dividend must be paid within 90 days of the
date ofthe determination that the corporation has "subchapter C earnings
qrrd profits." For this purpose, the date of a determinaiion means tie
effective date ofa closing agreement pursuant to Section 19441, the date
an assessment oftax imposed by this.section becomes final, or the date of
execution by the corporation ofan agreement with the Franchise Tax Board
_ relating to liability forthe tax imposed by this section. For purposds of Part
l0 (commencing with Section 17001), Part 10.2 (commencing with Section
18401), and this part, a corporation.must make the election provided in' Section 1368(e)(3) ofthe Internal Revenue Code.
(3) If a borporation distributes a consent dividend, it shall claim
the deduction provided in paragraph (1) by filing a claim therefor with'the Franchise Tax Board within 120 days ofthe date ofthe determination
specified in paragraph (2).
(4) The collection oftax imposed by this section from a corporation
described in paragraph (2) shall be stayed for 120 days after'the date of
the determination specified in paragraph (2). Ifa claim is filed pursuant to
paragraph (3), collection ofthat tax shall be further stayed until the date
the claim is acted upon by the Franchise Tax Board.
(5) If a claim is filed pursuant to paragraph (3), the running of
the statute of limitations on the making of assessments and actions for
collection ofthe tax imposed by this section shall be suspended for a period
oftwo years after the date ofthe determination specified in paragraph (2).
SEC. 10. Section24586 isaddedtotheRevenue andTaxationCode,
to read:
24586. (a) The Franchise Tax Board shall annually determine the
totq.l amount of1he fees generated by increases in the tax rates .for tax
1,ears beginning January I, 2007, and thereafter pw'suant to Revenue and
Taxation Code Sections 23151, 23181,23183, 23501, and 23811, and notify
the Controller of that anount.
(b) The Controller shall transfer the amount determined under
subdivision (a), less the direct, actual costs ofthe Franchise Tax Board
and the Controller for the collection and administration offunds under
this article, to the California Clean Money Fuhd, established pur.suant to
Section 91133 of the Government Code, for use in.funding clean and fair.
elections for non-federal statewide and. state legislative elections. Upon
appropriation by the Legislature, the Controller shall transfer the amount
of reimbursement for direct actuql costs incurred by the Franchise Tax
Board and the Offce of the Controller in the administration of this Jilnd.
(c) Allfunds deposited in the Califontia Clean Money Ftmd shall be
allocqted, in accordance with Section 91133 ofthe Government Code, to
the Fair Political Practices Commission for disbursement for the purposes
' cind in the manner described in Section 91133 ofthe Government Code.
(d) This section shall remain in effect so long as Chapter 12
(commencing with Secti.on 91015) of Title 9 of the Government Code, also
known as the California Clean Money and Fair Elections Act of 2006,
requires the establishmen! and maintenance of the CaliJbrnia Clean
Money Fund.
SEC. ll. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because the
only costs that may be incurred by a local agency or school district will
. be incurred because this act creates a new crime or infraction, eliminates
a crime or infraction, or changes the penalty for a crime or iniraction,
within the meaning of Section 17556 of the Govermnent Code, or changes
the definition of a crime within the meaning of Section 6 of Article Xlll B
. ofthe California Constitution.
SEC. 12. This chapter shall be deemed to amend the Political
Reform Act of 1974 as amended and all ofits provisions that dci not conflict
with this chapter shall apply to the prov.isions ofthis chapter.
SEC.13. Severability
' (a) The provisions of thiS act are severable. If any provision or
portion of provision of this act or the application of any provision of
this act to any person or circumstance is held to be invalid by a court of
competent jr.rrisdiction, that invalidity shall not affect other provisions or
applications ofthe act that can be given effect without the invalid provision
or application.
(b) In adopting this measure. the People specifically declare that the
provision ofthiS act adding Section 91 139 to the the Government Code shall
be severable from the remainder ofthis.act, and the People specifically
declare their desire and intent to enact the remainder ofthis act even ifthat
provision were not to be given full or partial effect. The People recognize
that a Montana law prohibiting corporate contributions or expenditures
in connection with a ballot measure election was invalidated in 2000 by a
divided panel of the Ninth Circuit Court of Appeals in Montana Chamber
of Comnterce.v. Argenbright, but believe that the mqjority opinion in that
case incorrectly interpreted relevant decisions ofthe United States Supreme
Court in this area and that more recent decisions of the Supreme Court
support the People's rationale for limiting corporate campaign spending in
order to eliminate the distorting effects ofcorporate wealth on the electoral
process. Moreover, the People are adopting the prohibitions in this. act
based upon an evidentiary record and history ofCalifornia ballot measure
elections that compellin!ly demonstrates the need for the narrowly tailored
restrictions contai ned herei n.
SEC. 14. Construction and Amendment
This act shall be broadly construed to accomplish its purposes. This
act may be amended to further its purposes by a statute, passed in each
house by rgll call vote entered in thejournal, two-thirds ofthe membership '
concurring and signed by the Governor, ifat least l2 days ptior to passage
in each house the bill in its final form has been delivered to the California
Fail Political Practices Cohmission for distribution to the news media
and to every person who has requested the Commission to send copies
of such bills to him or her. Any such amendment must be consistent with
the purposes and must further the intent ofthis act. Notwithstanding this
provision, amendments to adjust for changes in the cost ofliving may be
made pursnant to Section 91 145.
SEC. 15. Effective Date
' This act shall becorne effective immediately upon its approval by the
voters and shall apply tb all elections hel<l on or after January 1, 2007.
SEC. 16. Conflicting Ballot Measures
(a) If a conflict exists between the provisions of thiJ measure and
the provisions of any other measure approved by the voters at the same
election, the provisions ol this measure shall take effect except to the
extent that they are in direct and irreconcilable conflict with the provisions
ol such other measure and the other measure receives a greater number ol
affirmative votes.
(b) If any provisions ofthis measure are superseded by tle provisions
of any other conflicting ballot measure approved by the voters and
receiving agreater number ofaffirnrative votes at the same election, and the
conflicting ballot measure is subsequently held to be invalid, the provisions
ofthis measure shall be self-executing'and shall be given full force oflaw
PROPOSITION 90
This initiative measure is submitted to the people in accordance with
the provisions ofArticle II, Section 8 ofthe California Constitution.
This initiative measr.rre explessly amends the California Constitution
by amending a section thereof; therefore, new provisions proposed to be
added are printed in italic typelo indicate that they are new.
PROPOSED LAW
SECTION 1. STATEMENT OF FINDINGS
(a) The California Constitution providgs that no person shall be
deprived of property withor"rt due process of law and allows government
to take or damage private property only for a public use and only after
payment to the property owner ofjust compensation.
(b) Despite these constitutional protections, state and local
* * *Text of Proposed Laws I 187
TEXT OF PROPOSED LAWS * * *
governments have undermined private propeity rights through an excessive
use of eminent domain power and the regulation of private property for
purposes unrelated to public health and safety.
(c) Neither the federal nor the California courts have protocted
the full scope of private property rights found in the state constitution.
The courts have allowed local governments to exercise eminent domain
powers to advance private economic interests in the face of protests
from affecteC homeowners and neighborhood groups. The courts have
not required government to pay compensation to property owners when
enacting statutes, charter provisions, ordinances, resolutions, laws, rules
or regulations not related to public health and safety that reduce the value
ofprivlte property.
(d) Ascurrently structured, thejudicialprocess inCalifornia irvailable
to property owners to pursue property rights claims is cumbersome and
costly.
SEC.2. STATEMENTOFPURPOSE
(a) The power of eminent domain available to government in
California shall be limited to projects ofpublic use. Examples ofpublic use
projects include, but are not limited to, road construction, the tieation of
public parks, the creation ofpublic facilities, Iand-use planning, property
zoning, and actions to preserve the public health and safety.
(b) Public use projects that the government assigns, contracts or
otherwise arranges for private entities to perform shall retain the power
of eminent domain. Examples of public use projects that private entities
perform include, but are not limited to, the cdnstruction and operation of
private toll roads and privately-owned prison facilities.
' (c) Whenever government takes or dapages private property
for a public use, the owner of any.affected property shall receive just
compensation for the property taken or damaged, Just compensation
shall be set at fair market value for property taken and diminution offair
market value for property damaged. Whenever a property owner and the
government cannot agree on fair compensation, the California courts shall
provide through a jury trial a fair and timely process for the settlement of
d isputes.
. (d) This constitutional amendment shall apply prospectively. Its
terms shall apply to any eminent domain proceeding brought by a public
agency not yet subject to a final adjudication. No statute, charter provision,
ordinance, resolution, law, rule or regulation in qffect on the date of
enactment that results or has resulted in a substantial loss to the value of
private property shall be subject to the new provisions of Section l9 of
Article l.
. (e) Therefore, the people of the state of California hereby enact "The
Protect Our Homes Act."
SEC 3. Section. 19 of Article I of the California Constitution is
amendqd to read:
SEC. i9. (a)(1) Private property may be taken or damaged only
for a. stated public use and only when just compensation, ascertained by
a jury unless waived, has first been paid to, or into court for, the owner.
Private property may not be taken or damagedfor private use.
(2) Property taken by eminent dontain shall be owned and occupied
by the condemnor, or another governmental agency utilizing the property
for the stated public use by agreement with'the condemnor, or may be
Ieased to entities thdt are regulated by the Public Utilities Commissio:n or
any other entity that the government assigns, contracts or arrange.s with to
perform a public use project. AII property that is taken by eminent domain
shall be used only.for the stated piblic use.
. (3) Ifany property taken through eminent domain after the effective
date of this subdivision ceases to be used for the stated public use, the
former owner ofthe property or a benefciary or an heir, ifa benefciary or
heir has been designatedfor this purpose, shall have the right to reacquire
the ptoperty for the fair market value of the property before the property
may be otherwise sold or transfefted. Notu)ithstanding subdivision (a)
of Section 2 of Article XIII A, upon reacquisiti.on the property shall be
appraised by the assessor for purposes of property taxation qt its base
year value, with any authorized adjustments, as had been last determined
in accordance with Article XIII A at the tinxe the property was acqttired by
the condemnor.
(4) The Legislature may provide. for possessiqn by the condemnor
following commencement of eminent domain proceedings upon deposit in
court.and prompt release to the owner ofmoney determined by the court to
be the probable amount ofjust compensation.
(b) For purposes ofapplying this section:
(t ) " Public use" s.hall hove a dis tinct and ntore narrow meaning than
the tenn "pttblic purpose"; its limiting effect prohibits takings expected 7o
result in transfers to nongovernmental owners on economic develoBment
or tax revenue enhancentenl grounds, orfor any other actual uses that are
not public in fabt, even though these uses mdy serve otherwise legitimate
public purposes
(2) Public use shall not include the direct or indirect transfer of any
possessory interest in property taken in an eminent domain proceeding
from one private party to another private party unless that transfer
proceeds ptu'suant to a government assignment, contract or arrangement
with a pfivate entity whereby jhe private entity performs a public use
project. In all eminent domain actions, the government,sha.ll have the
burden to prove public use.
(3) Unpublished eminent domain judicial opinions or orders shall
be null and void.
(4) In'alt euinent domain actions, prior to the government's
occupancy, a property owner shall be given copies of all appraisals by
the government and shall be entitled, at the property owner's election, to a
separate and distinct determination by a superior coult jury, as to whether
the taking is actually for a public ase.
(5) If a public use is determined, the taken or damaged property
shall be valued at its highest and best use wtthout considering any future
dedication requirementi imposed by the government. Ifp)it ate property is
taken for any proprietary governuental purpose, then the p/c,perty shall
be valued at the use to which the government intends to put the propertyi if
such use results in a higher'taluefor the land taken.
(6) In att eminent domain actions, "just compensation" shall be
defned as that sum .of money necessary to place the property owner in
the same position monetarily, without any governmental oJfsets, as if the
propertlt had never been takeh. 'Just compensation" shall include, but is
not limited to, compounded interesi and all reasonable costs and expenses
aclually incurred.
(7) In all eminent domain actions, "fair market" value shall be
defined as the highest price the property would bring on the open market..
(8) Except when taken to protect public health and safet/, " damage"
to private property inaludes government actions that result in substantial
ecinomic-losi to private proper\). Examples ofsubstantial economic Ioss
include, but are not limited to, the downzoning of private property, the
elimination of any access to priv(ite property, and limitations on the use
of private air space. "Government action" shall mean any statute, charter
provision, ordinance, resolution, law, rule or regulation.
(9) A propertv owner shall not be liable to the government for
ottorneyfees or costs in any eminent domain action.
( l 0) For all provisions contained in this section, " government " s hall
be defned as the State of California; its political subdivisions, agencies,
any public or private agent acting on their behalf, and any public or private
entiti that has the power of eminent domain.
(c) Nothing in this section shal ! prohibit the California Public Ut ilities
Commission from regulating public utility rdtes.
(d) Nothing in this section shall restiict administative powers to take
or damage private property under a declared state of emergency.
' (e) Nothing in this section shall prohibit the ttse of condemnation
powers to abate nuisances such as blight, obscenity, pornography, hazardous
substances or environmentctl conditions, provided those condemnations are
limited to abatement.of specifc conditions on specific parcels.
SEC.4. IMPLEMENTATIONANDAMENDMENT
' This section shall be self-executing. The Legislature may adopt laws
to further the purposes of this section and aid in its implementation. No
amendment to this section may be made except by a vote of the people
pursuant to Article II or Article XVIII of the California Constitution.
SEC.5. SEVERABILITY
Tlre provisions of this section are severable. If any provision of this
section or its application is held invalid, that finding shall not affect other''provisions or applications that can be given effect without the invalid
provision.or appl ication.
SEC. 6. F,FFECTIVE DATE
This section shall become effective on the day following the election
1 88 I Text of Proposed Laws * * *
(PROPOSITION 90 CONTTNUED
(-
\
* * * TEXT OF PROPOSED LAWS
pursuant to subdivision (a) of Section 10 of Article II of the California
Constitution.
The provisions ofthis section shall apply immediately to any eminent
domain proceeding by a public agency in which there has been no final
adjudication.
Other than eminent domain powers, the provisions added to this
section shall not apply to any statute, charter provision, ordinance,
resolution, law, rule or regulation in effect on the date of enactment that
results in substantial economic loss. to private property. Any statute,
chdrter proyision, ordinance, resolutio;r, law, rule-oriegulation in effect
on the date ofenactment that is amended after.the date ofenactment shall
continue to be exempt from the proviiions added to this section provided
that the amendmentboth serves to promote the original policy ofthe statute,
charter provision, ordinance, resolution, law, rule or regulation and does '
not significantly broaden the scope of application of the st6tute, charter
provision, ordinance, resolution, law, rule. or_regulation being ainended.
The governmental entity making the amendment shall make a declaration
conterirporaneously with enactment cjf the amendment that the amendment
promotes the original policy of the statute, charter provision, ordinance,
resolution, law, rple or regulation and does not signific4ntly broaden its,
scope ofapplication. The question ofwhether an amendment significantly
broadens the scope'ofapplication is'subject to judicial review.
* * *Text of Proposed laws I 189
THE PROCESS OF VOTINGABSENTEE * * *
Any registered voter may vote by absentee ballot. Rather than go to the polls to cast a ballot on
Election Day, you may apply for an absentee ballot,.which you will need to complete and return to
your elections official.
To apply for an absentee ballot, you may use the application printed on your Sample Ballot, which you
will receive prior to every election, or apply in writing to your county elections official. You will need
to submit a completed application or letter to your county elections official between 29 diays and 7 days
before the election. The application or letter must contain:
I . yogr name and residence address as stated on your registration card;
2. the address to which the absentee ballot should be sent (if different than your registered
address);
g. the name and date of the election in which you would like to vote absentee; and
4. the date and your signature.
Once your application is processed by your county elections official, the proper ballot type/style will be
sent to you. After you have voted, insert your ballot in the envelope provided for this purpose, making
sure you complete all required information on the envelope. You may r'eturn your voted absentee ballot
by:
1 . mailing it to your county elections official;
,
2. returning it in person to a polling place or elections office within your county on Election
Day; or
g. authorizing a legally allowable third party (relative or person residing in the same household
as you) to return the ballot on your behalf.
Regardless'of how tire ballot is retrirne{ it MUST be received by the time polls close (8 p.m.) on
Election Day. Late-arriving absentee ballots are not counted.
i
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 youi voter registration card to
determine that you are the authorized voter. To preserve the secrecy of your ballot, the ballot will then
be separated from the envelope and the ballot becomes as anonymous and secret aq any other ballot.
Apply to Be a Permanent Vote-By'Mail Voter:
Any voter may apply for PERMANENTABSENTVOTER STAIUS (E{ections Code $ 3201). These
voters are automatically sent a vote-by-mail ballot for every election without having to fill out an
application every timp. Please contact your county elections official to apply to become a permanent
vote-by-mail voter if you wish to recgive vote-by-mail ballots for all future elections. To find out
who your county elections official is, go online at www.ss.ca.gov/elections/elections-d.htm to see a
list of contact information for all county elections officials.
190 I Process ol Voting Absentee* * *
***VOTERBITL OF RIGHTS ***
L You have the right to cast a ballot if you are a valid
registered voter.
A va{id registered voter means a United States citizen
who is a resident inthis state, who is at least 18 years
of age and not in prison or on parole for conviction
of a felony, and who is registered to vote at his or her
current residence address.
2. You have thp right to cast a provisional ballot if
your name.is not listed on the voting rolls.
3. ,You have the right to cast a ballot if you are present
and in line at the polling place prior to the close of
the polls.
4. You have the right to cast a secret ballot free from
intimidation.
5. You have the right to receive a new ballot if, prior to
casting your ballot, you believe you made a mistake.
If at any time before you finally cast your ballot, you feel
you have made a mistake, you have the right to exchange
the spoiled ballot for a new ballot. Absentee voters may
also request and receive a new ballot if they.return their
spoiled ballot to an elections official prior to the closing
ofthe polls on election day.
6. You have the right to receive assistance in
casting your ballot, if you are unable to vote
without assistance.
7. You have the right to return a completed
absentee ballot to any precinct in the county.
8. You have the right to'election materials in another
language, if there are sufficient residents in
your precinct to warrant production.
9. You have the right to ask questions about
election procedures and observe the elections
process.
You have the right to ask questions ofthe precinct
board and election officials regarding election' procedures and to receive an answer or be directed
to the appropriate official for an answer. However, if
persistent questioning disrupts the execution of their
duties, the board or election officials may discontinue
responding to questions.
10.You have the right to report any illegal or
fraudulent activity to a local elections official or to
the Secretary of State's Office.
lf you believe you have been denied any 0f these rights, or if you are aware of any election fraud
0r misconduct, please call the Secretary of State's confidential toll-free
Voter Protection Hotline at 1-8OO-345-VOTE (8683).
Information on your voter registration affidavit will be used by elections officials to send you official information on the
voting process, such as the location of your polling place and the issues and candidates that will appear on the 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,
political, or governmental purposes, as determined by the Secretary of State. Driverb license and social security
numbers, or your signature as shown on your voter registration card, cannot be released for these purposes. Ifyou have
any questions about the use of voter information or wish to report suspected misuse of such information, please call
the Secretary of State's Voter Protection and Assistance Hotline at l-800-345-VOTE.
Certain voters facing life-threatening situations may qualiff for confidential voter status. For more information,
please contact the Secretary of State's Safe At Home program or visit the Secretary of State's Web site at
www.ss.ca.gov.
* * * Voter Bill of Rights I 191
Secretary ol State
1500 1lth Street
Sacramento, CA 95814
GENERAL ELECTION
0fficial Voter lnlormation Guide
Remember to Vote!
Tuesday, Jlovember 7, 2006
Polls are open lrom 7 a.m. to I p.rn.
0ctober I
First day to apply lor an absontee ballot by mail.
0ctober 23
lasl day to register to vote.
0ctober 31
Iast day that county elections olficials will accept
any v0t0r's application lor an absentee ballot.
llovember 7
tast day to apply lor an absentee ballot in person
at the ollice ol the coudty elections ollicial.
For additional copies of the Voter Information Guide
in any of the following languages, please call:
English: 1-800-345-V0TE (8683)
Espafrol/Spanish: 1-800-232-V0TA (86S2)
E 6-# /tapanese: 1-8o0-339-2865
viQt ngfl /vietnamese: 1-800-339-8163
Iagalog/Tagalog: 1-800-339-2957
F I lctrinese : 1-8oo-33 I -29s7
*4 ollrorean : 1-866-575-1558
TDD: 1-800-833-8683
ln an effort to reduce election costs, the State Legislature has
authorized the State and counties to mail only one guide to
addresses where more than one voter with the same surname
resides. You may obtain additional copies by contacting your
county elections official or by calling 1-800-345-V0TE.
e$
PRSRT STD
U.S. POSTAGE
PAID
SECRETARY OF
STATE
www.vote rgu i d e. ss. ca.gov