JUNE 8, 2010

13

Limits on Property Tax Assessment. Seismic Retrofitting of Existing Buildings.

S. C. A. 4, 2007 - 2008

Art. XIIIA 2§ 2

Provides that construction to seismically retrofit buildings will not trigger reassessment of property tax value. Sets statewide standard for seismic retrofit improvements that qualify. Fiscal Impact: Minor reduction in local property tax revenues related to the assessment of earthquake upgrades.

14

Elections. Increases Right to Participate in Primary Elections.

S.C.A. 4, 2009-2010

Art. II § 5

Changes the primary election process for congressional, statewide, and legislative races. Allows all voters to choose any candidate regardless of the candidate's or voter's political party preference. Ensures that the two candidates receiving the greatest number of votes will appear on the general election ballot regardless of party preference. Fiscal Impact: No significant net change in state and local government costs to administer elections.

15

California Fair Elections Act.

A.B. 583

Elec. Code §§ 20600 et seq., Gov. Code §§ 85300 and 86102, and Gov.Code §§ 91015 et seq.

Repeals ban on public funding of political campaigns. Creates a voluntary system for candidates for Secretary of State to qualify for a public campaign grant if they agree to limitations on spending and private contributions. Each candidate demonstrating enough public support would receive same amount. Participating candidates would be prohibited from raising or spending money beyond the grant. There would be strict enforcement and accountability. Funded by voluntary contributions and a biennial fee on lobbyists, lobbying firms, and lobbyist employers. Fiscal Impact: Increased revenues (mostly from charges related to lobbyists) totaling over $6 million every four years. These funds would be spent on public financing for campaigns of Secretary of State candidates for the 2014 and 2018 elections

16

Imposes New Two-Thirds Voter Approval Requirement for Local Public Electricity Providers

Initiative

Art. XI §§ 9.5

Requires two-thirds voter approval before local governments provide electricity service to new customers or establish a community choice electricity program using public funds or bonds. Fiscal Impact: Unknown net impact on state and local government costs and revenues?unlikely to be significant in the short run?due to the measure's uncertain effects on public electricity providers and on electricity rates.

17

Allows Auto Insurance Companies to Base Their Prices in Part on a Driver?s History of Insurance Coverage.

Initiative

Ins. Code §§ 1861.024 & 1861.02

Permits companies to reduce or increase cost of insurance depending on whether driver has a history of continuous insurance coverage. Fiscal Impact: Probably no significant fiscal effect on state insurance premium tax revenues.

NOVEMBER 2, 2010

18

On August 10, 2010, the State Legislature and Governor removed Proposition 18 from the ballot.

19

Legalizes Marijuana under California but not Federal Law. Permits Local Governments to Regulate and tax Commercial Production, Distribution, and Sale of Marijuana.

Initiative Statute

H&S Code $sect;§ 11,300 et seq.

Allows people 21 years old or older to possess, cultivate, or transport marijuana for personal use. Fiscal Impact: Depending on federal, state, and local government actions, potential increased tax and fee revenues in the hundreds of millions of dollars annually and potential correctional savings of several tens of millions of dollars annually.

20

Redistricting of Congressional Districts.

Initiative Constitutional Amendment

Art. XXI §§ 1 - 3

Removes elected representatives from process of establishing congressional districts and transfers that authority to recently-authorized 14-member redistricting commission comprised of Democrats, Republicans, and representatives of neither party. Fiscal Impact: No significant net change in state redistricting costs.

21

Establishes $18 Annual Vehicle License Surcharge to Help Fund State Parks and Wildlife Programs. Grants Surcharged Vehicles Free Admission to All State Parks.

Initiative Statute

Pub. Resources Code §§ 5081 et seq., Rev. & Tax Code § 10751.5

Exempts commercial vehicles, trailers and trailer coaches from the surcharge. Fiscal Impact: Annual increase to state revenues of $500 million from surcharge on vehicle registrations. After offsetting some existing funding sources, these revenues would provide at least $250 million more annually for state parks and wildlife conservation.

22

Prohibits the State From Borrowing or Taking Funds Used for Transportation, Redevelopment, or Local Government Projects and Services.

Initiative Constitutional Amendment

Art. XIII §&setc; 24, 25.5, Art. XIX §§ 1 ? 9, Art. XIXA §§ 1, 2, Art. XIXB § 1, Art. XIXC

Prohibits State, even during severe fiscal hardship, from delaying distribution of tax revenues for these purposes. Fiscal Impact: Decreased state General Fund spending and/or increased state revenues, probably in the range of $1 billion to several billions of dollars annually. Comparable increases in funding for state and local transportation programs and local redevelopment.

23

Suspends Implementation of Air Pollution Control Law (AB 32) Requiring Major Sources of Emissions to Report and Reduce Greenhouse Gas Emissions That Cause Global Warming, Until Unemployment Drops to 5.5 Percent or Less for Full Year.

Initiative Statute

H&S Code § 38600

Fiscal Impact: Likely modest net increase in overall economic activity in the state from suspension of greenhouse gases regulatory activity, resulting in a potentially significant net increase in state and local revenues.

24

Repeals Recent Legislation That Would Allow Businesses to Lower Their Tax Liability.

Initiative Statute

Rev. & Tax Code §§ 17276, 17276.9, 17276.10, 23663, 24416, 24416.9, 24416.10

Fiscal Impact: Increased state revenues of about $1.3 billion each year by 2012?13 from higher taxes paid by some businesses. Smaller increases in 2010?11 and 2011?12.

25

Changes Legislative Vote Requirement to Pass Budget and Budget-Related Legislation from Two-Thirds to a Simple Majority. Retains Two-Thirds Vote Requirement for Taxes.

Initiative Constitutional Amendment

Art. IV § 12

Legislature permanently forfeits daily salary and expenses until budget bill passes. Fiscal Impact: In some years, the contents of the state budget could be changed due to the lower legislative vote requirement in this measure. The extent of changes would depend on the Legislature?s future actions.

26

Requires That Certain State and Local Fees Be Approved by Two-Thirds Vote. Fees Include Those That Address Adverse Impacts on Society or the Environment Caused by the Fee-Payer's Business.

Initiative Constitutional Amendment

Art. XIIIA § 3, Art. XIIIC § 1

Fiscal Impact: Depending on decisions by governing bodies and voters, decreased state and local government revenues and spending (up to billions of dollars annually). Increased transportation spending and state General Fund costs ($1 billion annually).

27

Eliminates State Commission on Redistricting. Consolidates Authority for Redistricting with Elected Representatives.

Initiative Constitutional Amendment and Statute

Art. II § 9, Art. XXI §§ 1-3, Gov. Code §§ 8251 et seq.

Eliminates 14-member redistricting commission. Consolidates authority for establishing state Assembly, Senate, and Board of Equalization districts with elected representatives who draw congressional districts. Fiscal Impact: Possible reduction of state redistricting costs of around $1 million over the next year. Likely reduction of these costs of a few million dollars once every ten years beginning in 2020.