July – Ballot Initiative Update

On June 29^th the Secretary of State (SoS) assigned numbers to all qualifying ballot initiatives for the November election. Below is a list of all propositions with their assigned number and a brief description. You will also find the in depth, SoS press release with detailed descriptions attached to this email. We expect a few measures to be particularly controversial and so wanted to be sure to highlight them for you here.

Controversial Propositions:

• Proposition 5 – changes the requirements for certain property owners to transfer their property tax base to a replacement property of equal or lesser value.
  • FISCAL IMPACT: This would have strong impacts on cities, counties, and special districts and schools with losses of property tax revenue around $150 million near term growing $1 billion in future according to Legislative Analyst and Director of Finance.
  • SUPPORT: HOMEOWNERSHIP FOR FAMILIES AND TAX SAVINGS FOR SENIORS, SPONSORED BY THE CALIFORNIA ASSOCIATION OF REALTORS
  • EXPENDITURES:
    • IN SUPPORT: $4,973,817.45
    • In OPPOSITION: N/A
• Proposition 6 – repeals the recently enacted gas tax – i.e. road repair and transportation funding by repealing revenue dedicated for those purposes. It further requires any vehicle fuel tax measure in the future be submitted to the electorate.
  • FISCAL IMPACT: This would impose a constitutional amendment. LAO predicts a loss of $2.9 billion in 2018-19 increasing to $4.9 billion by 2020-21.
  • SUPPORT: REJECT THE GAS TAX, A COMMITTEE SPONSORED AND FUNDED BY NO NEW TAXES, A PROJECT OF THE HOWARD JARVIS TAXPAYERS ASSOCIATION, REPEAL THE GAS TAX – GIVE VOTERS A VOICE
  • OPPOSITION: COALITION TO PROTECT LOCAL TRANSPORTATION IMPROVEMENTS, SPONSORED BY BUSINESS, LABOR, LOCAL GOVERNMENTS, TRANSPORTATION ADVOCATES AND TAXPAYERS
  • EXPENDITURES:
    • IN SUPPORT: $28,367.13, $1,041,495.18 (respectively by supporters noted above)
    • IN OPPOSITION: $1,434,367.04
• Proposition 10 – repeals Costa Hawkins Act (CH), passed in 1995 it limited local jurisdictions’ ability to impose rent control beyond the regulations in place at the time CH was passed. The two main provisions of Costa Hawkins as it currently stands are: 1. It protects a landlord’s right to raise the rent to market rate on a unit once a tenant moves out. 2. It prevents cities from establishing rent control—or capping rent—on units constructed after February 1995. This proposition expands local governments’ authority to enact rent control. Would allow local jurisdictions to decide whether or not to impose rent control, which is currently limited by CH.
  • FISCAL IMPACT: Fiscal impacts are unknown, but LAO predicts a net decrease in revenue with potential increase in local government costs of up to tens of millions, likely paid for by owners of rental housing.
  • SUPPORT: COALITION FOR AFFORDABLE HOUSING. SPONSORED BY AIDS HEALTHCARE FOUNDATION AND ACCE ACTION
  • OPPOSITION: CALIFORNIANS FOR RESPONSIBLE HOUSING, SPONSORED BY THE CALIFORNIA APARTMENT ASSOCIATION (CAA), CALIFORNIANS TO PROTECT AFFORDABLE HOUSING A COALITION OF HOUSING ADVOCATES, RENTERS, LARGE AND SMALL BUSINESSES, TAXPAYER GROUPS, AND VETERANS, CALIFORNIANS FOR AFFORDABLE HOUSING, SPONSORED BY THE CALIFORNIA RENTAL HOUSING ASSOCIATION, CALIFORNIA RENTAL HOUSING ASSOCIATION (NONPROFIT 501(C)(6))
  • EXPENDITURES:
    • IN SUPPORT: $1,735,329.76
    • IN OPPOSITION: $468,169.15 (by Californians for Responsible Housing, sponsored by CAA)
• Proposition 12 – establishes new standards for the confinement of certain farm animals (veal calves, breeding pigs, egg-laying hens) and bans the sale of certain non-complying products.
  • FISCAL IMPACT: LAO predicts potential decrease in state and local tax revenues from farm businesses in low millions annually and potential state costs up to ten million to enforce the measure.
  • SUPPORT: PREVENT CRUELTY CALIFORNIA, A HUMANE SOCIETY COMMITTEE
  • EXPENDITURES:
    • IN SUPPORT: $1,258,324.91
    • IN OPPOSITION: N/A

All Qualifying Propositions + Summary:

• Proposition 1: Veterans and Affordable Housing Bond Act of 2018, would issue $4 billion in bonds for veterans housing.
• Proposition 2: No Place Like Home Act of 2018, authorizes prop. 63 revenue from 1% tax on income over $1 million to be used for replaying $2 billion in bonds for supportive housing.
• Proposition 3: authorized $8.877 in bonds to fund infrastructure projects for water supply and quality, watershed, fish, wildlife, water conveyance, and groundwater sustainability and storage.
• Proposition 4: authorizes $1.5 billion in bonds to fund construction at hospitals providing children’s health care.
• Proposition 5: changes requirements for transferring property tax base to replacement residence for homeowners who are over 55 years-old or severely disabled.
• Proposition 6: repeals SB 1 tax and fee provisions and requires the legislature to submit any measure enacting specified taxes or fees on gas or diesel fuel or operation of a vehicle on public highways to the electorate for approval.
• Proposition 7: repeals California’s Daylight Savings Time Act passed by voters in 1949, makes Pacific Standard Time the standard time within the state, retains 1 hr. advancement of PST between 2^nd Sunday in March and 1^st Sunday of November, authorizes legislature to change these provisions by 2/3’s vote, provided that the proposed changes are consistent with federal law.
• Proposition 8: limits amounts outpatient kidney dialysis clinics may charge for patient care and imposes penalties for excessive charges.
• Proposition 9: divides California into three states.
• Proposition 10: expands local governments’ authority to enact rent control on residential property
• Proposition 11: requires private-sector emergency ambulance employees to remain on call during work breaks.
• Proposition 12: establishes new minimum space requirements for confining veal calves, breeding pigs and egg-laying hens, also requires egg-laying hens to be raised in a cage-free environment after Dec. 31, 2021.