On your June 5th Ballot – Statewide Ballot Measures

March 28, 2018

Your Palm Desert Area Chamber of Commerce Legislative Action Team has reviewed and discussed the 5 Propositions you will see on your June 5, 2018 ballot.

In examining each of the ballot measures, we looked at how each of these potential laws could impact your business interests and the economic well-being of the entire Coachella Valley. It is also our intent to review these measures independent of our affiliations with the California Chamber of Commerce and numerous political coalitions.

Your Legislative Action Team is limiting its energies and support to Propositions 68, 69, and 70. Neither Proposition 71 nor Proposition 72 had any significant effect on local business, therefore the Team is not commenting on their value

The California Chamber of Commerce is supporting all five (5) ballot measures on the June ballot. If you wish to see more information on the election and CalChamber’s advocacy, you can click on this link. www.advocacy.calchamber.com/ The information below has been culled from CalChamber articles. http://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml will take you to the actual bills adopted at the State Capitol.

Proposition 68 SB 5 (Chapter 852, Statutes of 2017), De León. California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018.

The state legislature passed SB 5 (de León), the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018, which, if approved by the voters, would authorize the issuance of bonds in an amount of $4 billion pursuant to the State General Obligation Bond Law.

The funds for water quality and supply total $1.27 billion of the $4 billion (30%). The funds for environmental protection and restoration total $2.83 billion of the $4 billion (70%).

  • The CalChamber Board voted to support SB 5 because the measure:
  • Provides funds for groundwater cleanups that improve water quality.
  • Provides funds for flood protection and repair.
  • Provides $250 million funds for clean drinking water and drought programs with $30 million available for grants in San Joaquin where many communities lack access to clean safe drinking water.
  • Provides funds for parks in urban and disadvantaged communities.
  • Improves state park tourism.
  • Helps address the backlog of deferred maintenance at state parks.
  • Invests in rural communities.

Proposition 69 ACA 5 (Resolution Chapter 30, statutes of 2017), Frazier. Motor vehicle fees and taxes: restriction on expenditures: appropriations limit.

ACA 5 is a constitutional amendment to restrict the expenditures of motor vehicle taxes and fees.

It is a companion measure to CalChamber-supported SB 1 (Chapter 5, Statutes of 2017), which enacted the Road Repair and Accountability Act of 2017. This constitutional amendment will protect funds raised by the Act so that the money can be used only for transportation purposes. The constitutional amendment specifically identifies the two funding sources in SB 1 that are not currently protected by the Constitution: revenue derived from the diesel sales tax and the Transportation Improvement Fee.

If approved by the voters, ACA 5 would amend the California Constitution in the following ways:

  • Exempt appropriations of revenues generated from the Road Maintenance and Rehabilitation Account created by SB 1, or any other revenues deposited into account pursuant to that measure, from counting toward the state appropriations limit.
  • Require revenues derived from the sales tax on diesel fuels to be deposited into the Public Transit Account, and prohibit the Legislature from temporarily or permanently diverting or appropriating those revenues for purposes other than researching, planning, constructing, improving, maintaining, and operating public streets and highways and transportation systems.
  • Require that revenues derived from SB 1’s proposed Transportation Improvement Fee on vehicles, except for specified administrative expenditures to collect the revenues, be used solely for transportation purposes.
  • These revenues would not be used for debt service on any existing state transportation general obligation bonds, but only for future bond debt service, if specifically authorized in a future G.O. bond.
  • The Legislature would be prohibited from borrowing those revenues or using them for unauthorized purposes.

The CalChamber Board voted to endorse this measure to add additional protections for the new transportation revenues approved under SB 1.

Proposition 70 ACA 1 (Resolution Chapter 105, statutes of 2017), Mayes. Greenhouse Gas Reduction Reserve Fund.

This constitutional amendment requires that beginning January 1, 2024, revenues from the cap-and-trade auctions be deposited into the Greenhouse Gas Reduction Reserve Fund. ACA 1 requires a one-time legislative supermajority approval of the cap-and-trade expenditure plan before the funds can be returned to the Greenhouse Gas Reduction Reserve Fund to be appropriated. Upon the effective date of the two-thirds vote appropriation, monies from the sale of cap-and-trade allowances will return to being subject to a majority vote of the Legislature.

The one-time supermajority vote will provide additional negotiation and bipartisan support for the expenditure plan, with the negotiation process allowing time to evaluate which programs funded by the spending plan are operating as intended.

The CalChamber Board voted to support this measure because ACA 1 will encourage bipartisan support for an expenditure plan and allow for a process to negotiate expenditures that furthers the goals of the Legislature as a whole. The pause on expenditures will allow time to evaluate the efficacy of programs that are being continuously funded.

Proposition 71 ACA 17 (Resolution Chapter 190, Statutes of 2017), Mullin. Ballot measures: effective date (PDF)

ACA 17 (Mullin; D-South San Francisco; Resolution Chapter 190, Statutes of 2017) provides that an initiative statute, referendum, or constitutional amendment or revision shall take effect on the fifth day after the Secretary of State files the statement of vote, unless the measure provides a later operative date that is after this effective date.

Under current law, if there are two or more measures approved in the same election that are in conflict, the measure with the highest number of affirmative votes prevails. The Secretary of State has until the 38th day after the election to tally, prepare, certify, and file a statement of vote regarding a statewide measure. This gap in time between the current effective date of an initiative statute, referendum, or constitutional amendment or revision and when the Secretary of State certifies/files the statement of vote, can create confusion and the potential for an erroneous change of law or new law.

The measure is needed because the potential for error with regard to whether an initiative or referendum has been approved is higher due to the increase in vote-by-mail ballots, that are not even received until days after the election.

The CalChamber Board voted to support the measure because allowing initiatives and referenda to go into effect before the vote has been certified by the Secretary of State can create confusion and even the erroneous implementation of new law.

Proposition 72 SCA 9 (Resolution Chapter 1, Statutes of 2018), Glazer. Property tax: new construction exclusion: rain water capture system.

SCA 9 (Glazer; D-Contra Costa; Resolution Chapter 1, Statutes of 2018) will exclude rain water capture systems from the definition of “newly constructed” for property tax reassessment purposes.

Current law, after Proposition 13, generally limits ad valorem property taxes to 1% of the full cash value of the property plus a maximum increase of 2% per year. The full cash value is the value of the property in 1975–1976 or “the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.”

The “new construction” reassessment can also be used when there are renovations to the property. To incentivize certain property expenditures, current law specifies that additions of active solar energy systems, fire sprinkler systems, and additions to make a building more accessible to disabled persons do not trigger the “new construction” reassessment.

Proposition 72 would add rain water capture systems to the list of property expenditures that would not trigger the new construction reassessment.

California is in a state of flux between heavy precipitation and drought. The CalChamber Board voted to support Proposition 72 because rain water recapture systems are an effective means of conserving water that should be encouraged.

Last modified: March 28, 2018

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