Politichaos

Resolving the Ruckus

Proposition 39 : Corporate Taxation and Energy Fund

Official title : Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statute.

State analysis      /    Money trail

Summary :

  1. Requires multistate businesses to calculate their California income tax liability based on the percentage of their sales in California.
  2. Repeals existing law giving multistate businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California.
  3. Dedicates 50%, up to $550 million annually for 5 years for the purpose of funding projects that create energy efficiency and clean energy jobs in California. The rest would go in the General Fund.

Notes:

  1. There is specific language related to large cable companies.
  2. Eligible energy projects include:
    1. energy efficiency retrofits and alternative energy projects in public schools, colleges, universities, and other public facilities
    2. financial and technical assistance for energy retrofits
    3. job training and workforce development programs related to energy efficiency and alternative energy
    4. Expected increase in revenues of $1B annually. Currently $9.6B.

Proposition 38 : Income Tax Increase for Education

Official title : Tax to Fund Education and Early Childhood Programs. Initiative Statute.

State analysis     /    Money trail

Summary :

  1. Increases personal income tax rates on annual earnings over $7,316 using sliding scale from .4% for lowest individual earners to 2.2% for individuals earning over $2.5 million, for 12 years.
  2. During first four years, allocates 60% of revenues to K–12 schools, 30% to repaying state debt (focusing on education-related debt), and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K–12 schools, 15% to early childhood programs.
  3. Provides K–12 funds on school-specific, per-pupil basis, subject to local control, audits, and public input.
  4. Prohibits state from directing new funds, can only be reallocated with ballot measure.

Notes:

 

  • Details for income tax increases:
  • 60% of taxpayers would have an increased tax bill
  • Moneys for schools from this proposition are over and above current budget requirements for schools.
  • Distribution of money to specific schools (not to the districts):
    1. 70% based on per-student grants based on each student's grades, used for instruction, school support staff (such as counselors and librarians), and parent engagement.
    2. 18% based on low income student population (based on how many qualify for free meals), used for instruction, school support staff (such as counselors and librarians), and parent engagement.
    3. 12% based on student population, used for training school staff and purchasing up-to-date technology and teaching materials.
    4. When the school governing board decides how to spend the funds, it must explain—publicly and online—how CETF school expenditures will improve educational outcomes and how those improved outcomes will be measured.
    5. All school districts must create and publish an online budget for each of their schools. The budget must show funding and expenditures at each school from all funding sources, broken down by various spending categories.
    6. up to 1 percent of a school district’s allocation to be spent on budgeting, reporting, and audit requirements. The measure prohibits CETF school funds from being used to provide salary or benefit increases unless the increases are provided to other like employees that are funded with non-CETF dollars.
    7. In the initial years, it is estimated that schools would receive approximately $1000 per student.
    8. Early childhood program funds are specifically allocated in 7 areas.
    9. State would be required to spend at least the same level of funding as in 2012-2013 in the future (roughly 1%) for ECE.
    10. ECE facility rating system introduced - higher rated facilities would get more money.
    11. Toddler program established.
    12. Initial additional revenue would be about $10B, $3B which could be used for General Fund.
    13. This proposition is funded by Molly Munger ($31M as of 10/10/12)

Proposition 37 : Genetically Engineered Food Labeling

Official title : Genetically Engineered Foods. Labeling. Initiative Statute.

State analysis      /    Money trail

Summary :

  1. Requires labeling on raw or processed food offered for sale to consumers if made from plants or animals with genetic material changed in specified ways.
  2. Prohibits labeling or advertising GE food as “natural,” “naturally made,” “naturally grown,” or “all natural”
  3. Exempts foods that are:
    1. certified organic
    2. unintentionally produced with genetically engineered material
    3. made from animals fed or injected with genetically engineered material but not genetically engineered themselves
    4. processed with or containing only small amounts of genetically engineered ingredients
    5. administered for treatment of medical conditions
    6. sold for immediate consumption such as in a restaurant
    7. alcoholic beverages.
    8. Requires Department of Public Health to regulate the labeling of such foods
    9. Allows individuals to sue food manufacturers who violate the measure’s labeling provisions under the Consumer Legal Remedies Act, which allows consumers to sue without needing to demonstrate that any specific damage occurred as a result of the alleged violation.

Notes:

  1. Genetically engineered foods definition
  2. On raw foods, the label must be on the front package or label.
  3. on processed foods, must have “Partially Produced with Genetic Engineering” or “May be Partially Produced with Genetic Engineering.” on label.
  4. Retailers would be responsible for the products on their shelves being correctly labeled. For each product that is not labeled as GE, a retailer generally must be able to document why that product is exempt from labeling via
    1. a sworn statement from the provider of the product (such as a wholesaler) indicating that the product has not been intentionally or knowingly genetically engineered or
    2. by receiving independent certification that the product does not contain GE ingredients.

Proposition 36 : 3 Strikes Law

Official title : Three Strikes Law. Repeat Felony Offenders. Penalties. Initiative Statute.

State analysis       /    Money trail

Summary :

  1. Revises three strikes law to impose life sentence only when new felony conviction is serious or violent, and certain sex, drug and gun felonies.
  2. Authorizes re-sentencing for offenders currently serving life sentences if third strike conviction was not serious or violent and  offender does not pose unreasonable risk to public safety. Currently 25 yrs to life, change would be to double the normal term, with some exceptions for certain sex, drug and gun prior felonies.
  3. Maintains life sentence penalty for felons with nonserious, non-violent third strike if prior convictions were for rape, murder, or child molestation.

Notes:

  1. Current 3 strikes law says that if a person who is convicted of a felony, and who previously has been convicted of one or more violent or serious felonies
    1. if they had 1 previous serious felony and new crime is a violent felony, the term is doubled.
    2. if they
    3. if they had 2 previous serious felonies and they commit a new crime (felony or not), the term is life, parole a possibility after 25 years.
    4. As of March 2012, about 33,000 inmates were second strikers and 9,000 were third strikers.
    5. Savings expected to be $70M annually.

Proposition 35 : Human Trafficking

Official title : Human Trafficking. Penalties. Initiative Statute.

State analysis      /    Money trail

Summary :

  1. Increases criminal penalties for human trafficking, including prison sentences up to 15-years-to-life (currently 5 to 8 yrs) and fines up to $1,500,000, used for victim services (70%) and law enforcement (30%).
  2. Requires sex offenders to provide information regarding Internet access and identities they use in online activities.
  3. Prohibits evidence that human trafficking victim engaged in sexual conduct from being used against them in court proceedings (eg. prostitution).
  4. Requires 2 hours of human trafficking training for police officers.
  5. Expands definition of human trafficking to include creation and distribution of obscene materials depicting minors.

Notes:

  1. Most human trafficking cases are handled by the Feds. There are currently 18 human traffickers in jail convicted by the State.
  2. Federal definition of human trafficking includes sex trafficking and labor trafficking.
  3. CA state law defines human trafficking as violating the liberty of a person with the intent to either (1) commit certain felony crimes (such as prostitution) or (2) obtain forced labor or services.
  4. Summary of changes to maximum penalties:
    1. Labor trafficking - current = 5 years, new = 12 years
    2. Sex trafficking of an adult, forced - current = 5 years, new = 20 years
    3. Sex trafficking of a minor without force - current = none, new = 12 years
    4. Sex trafficking of a minor, forced - current = 8 years, new = life term
    5. Great bodily injury, on top of other penalties - current = 6 years, new = 10 years
    6. Prior human trafficking offense, on top of other penalties - current = none, new = 5 years per prior conviction
    7. Sex trafficking a minor - current = up to $100k, new = $1.5M for all human trafficking offenses

Proposition 34 : Death Penalty

Official title : Death Penalty. Initiative Statute.

State analysis     /    Money trail

Summary :

  1. Repeals death penalty and replaces it with life imprisonment without possibility of parole, and they must work while in prison with their wages subject to deductions to be applied to any victim restitution fines or orders against them.
  2. Directs $100 million to law enforcement agencies for investigations of homicide and rape cases, paid over the next 4 years (SAFE California Fund).

Notes:

  1. Inmates are currently required to work. Change is that this would require every person found guilty of murder to work and have their pay deducted for any debts they owe to victims of crime.
  2. Any death penalty verdict is automatically appealed to the CA Supreme Court. Current death penalty appeals would move from the CA Supreme Court to Court of Appeal or Superior Court.
  3. Annual savings for trials estimated at $100M annually.
  4. First degree murder with special circumstances is the only crime where the death penalty is applicable.
  5. Since the current death penalty law was enacted in California in 1978, around 900 individuals have received a death sentence. Of these, 14 have been executed, 83 have died prior to being executed, and about 75 have had their sentences reduced by the courts. As of July 2012, California had 725 offenders in state prison who were sentenced to death.

Proposition 33 : Auto Insurance Discount

Official title : Auto Insurance Companies. Prices Based on Driver’s History of Insurance Coverage. Initiative Statute.

State analysis    /    Money trail

Summary :

  1. Allows insurance companies to give continuous coverage discounts to drivers with some history of prior insurance coverage at another provider. Currently can only give that discount if coverage is at existing provider. Children residing with a parent could qualify for the discount based on their parent’s eligibility. Discount may be prorated based on % covered over the last 5 years.
  2. Treats drivers with lapse as continuously covered if lapse is due to military service, or 18 months in the last 5 years due to loss of employment, or if lapse is less than 90 days in 5 years.

Notes:

  1. Since 1988, the CA Insurance Commissioner reviews and approves rate changes for certain types of insurance, including automobile insurance, before changes to the rates can take effect. Factors are: (1) the insured’s driving safety record, (2) the number of miles they drive each year, and (3) the number of years they have been driving plus 16 other factors.
  2. Money supporting this initiative is primarily from Mercury Insurance and other insurance companies/agents.

Proposition 32 : State and Local Political Contributions

Official title : Political Contributions by Payroll Deduction. Contributions to Candidates. Initiative Statute.

State analysis   /    Money trail

Summary :

  1. Prohibits unions, corporations and government contractors from using payroll-deducted funds for state & local political purposes.
  2. Prohibits unions and corporations from contributing directly or indirectly to state & local candidates and candidate controlled committees. They can contribute to superPACs, ballot measures, etc via independent expenditures.
  3. Prohibits government contractor contributions to elected officers or officer-controlled committees who play a role in awarding their contracts, from the time the contract is being considered until contract is expired.

Notes: none at this time

Proposition 31 : State Budget

Official title : State Budget. State and Local Government. Initiative Constitutional Amendment and Statute

State analysis     /    Money trail

Summary :

  1. Establishes two-year state budget cycle beginning in 2015.
  2. Prohibits Legislature from creating expenditures of more than $25 million unless offsetting revenues or spending cuts are identified.
  3. Permits Governor to cut budget unilaterally during declared fiscal emergencies if Legislature fails to act.
  4. Requires performance reviews of all state programs at least once every 5 years.
  5. Requires performance goals in state and local budgets.
  6. Requires publication of bills at least three days prior to legislative vote (except for natural disaster and terrorost attack measures).
  7. Allows local governments to decide how to provide services and instead of implementing state laws/regulations, create "functionally equivalent" procedures.
  8. Local governments get to decide how property taxes are allocated among local government entities.

Notes:

  1. Budget:
    1. Currently budget requires passing by a majority in both houses, 2/3 vote in both houses to increase state taxes.
    2. State constitution mandates that the overall budget be balanced.
    3. Under this proposition, if a bill increases spending by over $25M, Legislature must show how it would be offset by other spending reductions and/or revenue increases.
    4. Exemptions:
      1. one-time spending for a state department or program
      2. increase funding for a department or program due to increases in workload or the cost of living
      3. provide funding required by federal law
      4. increase the pay or other compensation of state employees pursuant to a collective bargaining agreement
      5. bills that restore funding to state programs reduced to help balance the state budget in any year after 2008–09
      6. Under this proposition, if a bill decreases revenues by over $25M, Legislature must show how it would be offset by spending reductions and/or other revenue increases.
      7. Additional Governor powers:
        1. Only comes into play if the Legislature does not pass legislation to address a fiscal emergency within 45 days.
        2. Governor could not reduce spending that is required by the Constitution or federal law (most school spending, debt service, pension contributions, and some health and social services).
        3. Total amount of the reductions could not exceed the amount necessary to balance the budget.
        4. The Legislature could override all or part of the reductions by a two-thirds vote in both of its houses.
        5. Local procedures notes:
          1. Services included: economic development, education, social services, public safety, and public health
          2. State funds would be used for the local "functionally equivalent" procedures instead of the state law or regulation.
          3. Local procedures could be vetoed by the State Legislature
          4. Local procedures would expire after 4 years.

Proposition 30 : 2012 Budget Agreement - Income and Sales Tax Increases

Official title : Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment.

State analysis    /    Money trail

Summary :

  1. CA income tax increased for 7 years for  taxable income over $250k (approx 1% of taxpayers = 40% of CA income tax revenue)) from 2012 to 2018:
    1. single between $250k-$300k, up 1% (now 9.3%)
    2. joint  between $500k-$600k, up 1% (now 9.3%)
    3. HOH between $340k-$408k, up 1% (now 9.3%)
    4. single  between $300k-$500k, up 2% (now 9.3%)
    5. joint  between $600k-$1M, up 2% (now 9.3%)
    6. HOH  between $408k-$680k, up 2% (now 9.3%)
    7. single  over $500k up 3% (now 9.3%)
    8. joint  over $1M up 3% (now 9.3%)
    9. HOH over $680k up 3% (now 9.3%)
    10. single over $1M up 3% (now 10.3%)
    11. Increases sales and use tax by ¼ cent for 4 years, from 1/1/2013 through 12/31/2016.
    12. Allocates temporary tax revenues 89% to K–12 schools and 11% to community colleges.
    13. Permanently excludes the sales tax revenues redirected to local governments from the calculation of the minimum funding guarantee for schools and community colleges.
    14. Provisions concerning public safety services moved from state to local control in 2011 :
      1. Guarantees money to local government for public safety services moved from state to local control in 2011.
      2. Local governments would not be required to implement any future state laws that increase local costs to administer the program responsibilities transferred in 2011, unless the state provided additional money to pay for the increased costs. The measure requires the state to pay part of any new local costs that result from certain court actions and changes in federal statutes or regulations related to the transferred program responsibilities.
      3. Under the Constitution, the state must reimburse local governments when it imposes new responsibilities or “mandates” upon them. Under current law, the state could be required to provide local governments with additional funding (mandate reimbursements) to pay for some of the transferred program responsibilities. This measure specifies that the state would not be required to provide such mandate reimbursements.
      4. The Ralph M. Brown Act requires that all meetings of local legislative bodies be open and public. In the past, the state has reimbursed local governments for costs resulting from certain provisions of the Brown Act (such as the requirement to prepare and post agendas for public meetings). This measure specifies that the state would not be responsible for paying local agencies for the costs of following the open meeting procedures in the Brown Act.

Notes :

  1. Expected to bring in $6 billion annually.
  2. The 2012-2013 budget passed by the legislature assumes this will pass. If it doesn't, automatic spending cuts will happen to the tune of $6B.
  3. Proposition 38 also deals with personal income tax increases. If both pass, the tax rate provisions of one with the higher number of votes would be implemented. If Prop 38 gets more votes and both pass, the trigger cuts of $6B would take place.
  4. Trigger cut details:
    1. Schools and community colleges (K-14) - $5,354M
    2. University of California - $250M
    3. California State University - $250M
    4. Department of Developmental Services - $50M
    5. City police department grants - $20M
    6. CalFire - $10M
    7. DWR flood control programs - $7M
    8. Local water safety patrol grants - $5M
    9. Department of Fish and Game - $4M
    10. Department of Parks and Recreation - $2M
    11. DOJ law enforcement programs - $1M
    12. Public safety services that were transferred from state to local control in 2011 (roughly $6B):
      1. incarcerating certain adult offenders
      2. supervising parolees
      3. providing substance abuse treatment services