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PRESS RELEASE / ANNOUNCEMENTS Friday, June 29, 2018

Secretary of State Alex Padilla Assigns Numbers to November Ballot Measures, Invites Ballot Arguments

SACRAMENTO – Secretary of State Alex Padilla today assigned proposition numbers to the legislative and initiative measures set to appear on the November 6, 2018, General Election ballot. Secretary Padilla also invited interested Californians to submit arguments to be considered for inclusion in the Official Voter Information Guide. The guide is mailed to every voting household in California and posted on the Secretary of State’s website.

The propositions are listed below, along with the Legislative Counsel’s digest or the Attorney General’s official circulating title and summary.

Proposition 1
SB 3 (Chapter 365, Statutes of 2017), Beall. Veterans and Affordable Housing Bond Act of 2018. (PDF)

Under existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, home ownership for very low and low-income households, and downpayment assistance for first-time home buyers. Existing law also authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law and requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks. Existing law, the Veterans’ Bond Act of 2008, authorized, for purposes of financing a specified program for farm, home, and mobilehome purchase assistance for veterans, the issuance, pursuant to the State General Obligation Bond Law, of bonds in the amount of $900,000,000.

This bill would enact the Veterans and Affordable Housing Bond Act of 2018, which, if adopted, would authorize the issuance of bonds in the amount of $4,000,000,000 pursuant to the State General Obligation Bond Law. Of the proceeds from the sale of these bonds, $3,000,000,000 would be used to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as provided, and $1,000,000,000 would be used to provide additional funding for the above-described program for farm, home, and mobilehome purchase assistance for veterans, as provided.

This bill would provide for submission of the bond act to the voters at the November 6, 2018, statewide general election in accordance with specified law.

This bill would declare that it is to take effect immediately as an urgency statute.

Proposition 2
AB 1827 (Chapter 41, Statutes of 2018), Committee on Budget. No Place Like Home Act of 2018. (PDF)

(1) The Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayer’s taxable income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund to fund various county mental health programs.

Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified. Existing law establishes the No Place Like Home Fund, requires specified moneys to be deposited in the fund, and continuously appropriates moneys in the fund for these purposes. Existing law authorizes the California Health Facilities Financing Authority and the department to enter into service contracts pursuant to the program related to permanent supportive housing, and further authorizes the authority to issue taxable or tax-exempt revenue bonds in an amount not to exceed $2,000,000,000 and to make secured or unsecured loans to the department in connection with financing permanent supportive housing pursuant to the department. Existing law establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund and requires the Controller to transfer from that fund to the subaccount an amount necessary to cover the costs the authority is required to pay to the department pursuant to a service contract with the department, as provided.

This bill would enact the No Place Like Home Act of 2018 and provide for submission of that act to the voters at the November 6, 2018, statewide general election. The bill would specify that the service contracts between the authority and the department may be single-year or multiyear contracts and provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount. The bill would include any appropriation or transfer to the No Place Like Home Fund from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund. The bill would declare that the voters ratify as being consistent with and in furtherance of the MHSA, and approve for purposes of specified provisions of the California Constitution relating to debt, specified statutes related to the No Place Like Home Program and related financial provisions. The bill would also authorize the Legislature to appropriate for transfer moneys in the Mental Health Services Fund to the Supportive Housing Program Subaccount, subject to specified conditions, and continuously appropriate those moneys for further transfer to the No Place Like Home Fund to be used for purposes of the No Place Like Home Program. The bill would provide that any amount appropriated and deposited in the No Place Like Home Fund pursuant to these provisions would reduce the amount of authorized but unissued bonds that the California Health Facilities Financing Authority may issue, as described above, by a corresponding amount. The bill would authorize the Legislature to amend the No Place Like Home Act of 2018 by a2/3 vote, so long as the amendment is consistent with and furthers the intent of the act.

(2) Existing law contains provisions related to elections and voting, including a requirement that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.

This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit the No Place Like Home Act of 2018 to the voters for their approval at the November 6, 2018, statewide general election.

(3) This bill would declare that it is to take effect immediately as an urgency statute.

Proposition 3
AUTHORIZES BONDS TO FUND PROJECTS FOR WATER SUPPLY AND QUALITY, WATERSHED, FISH, WILDLIFE, WATER CONVEYANCE, AND GROUNDWATER SUSTAINABILITY AND STORAGE. INITIATIVE STATUTE. Authorizes $8.877 billion in state general obligation bonds for various infrastructure projects: $3.03 billion for safe drinking water and water quality, $2.895 billion for watershed and fisheries improvements, $940 million for habitat protection, $855 million for improved water conveyance, $685 million for groundwater sustainability/storage, and $472 million for surface water storage/dam repairs. Appropriates money from General Fund to pay off bonds. Requires certain projects to provide matching funds from non-state sources; gives priority to disadvantaged communities. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State costs of $17.3 billion to pay off principal ($8.9 billion) and interest ($8.4 billion) on bonds over a 40-year period. Annual payments would average $433 million. Annual payments would be lower than this average in the initial and final few years, and somewhat higher in the intervening years. Varying fiscal effects on individual local governments depending on specific projects undertaken, amount of grants and loans received, and amount of local cost-share required. (17-0010.)

Proposition 4
AUTHORIZES BONDS FUNDING CONSTRUCTION AT HOSPITALS PROVIDING CHILDREN’S HEALTH CARE. INITIATIVE STATUTE. Authorizes $1.5 billion in bonds, to be repaid from state’s General Fund, to fund grants for construction, expansion, renovation, and equipping of qualifying children’s hospitals. Designates 72 percent of funds to qualifying private nonprofit hospitals providing comprehensive services to high volumes of children eligible for governmental programs and children with special health needs eligible for the California Children’s Services program, 18 percent of funds to University of California general acute care children’s hospitals, and 10 percent of funds to public and private nonprofit hospitals providing services to children eligible for the California Children’s Services program. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State costs of $2.9 billion to pay off principal ($1.5 billion) and interest ($1.4 billion) on bonds over a 35-year period. Annual payments would average $84 million. Annual payments would be lower than this average in the initial and final few years, and somewhat higher in the intervening years. (17-0045.)

Proposition 5
CHANGES REQUIREMENTS FOR CERTAIN PROPERTY OWNERS TO TRANSFER THEIR PROPERTY TAX BASE TO REPLACEMENT PROPERTY. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Removes the following current requirements for homeowners who are over 55 years old or severely disabled to transfer their property tax base to a replacement residence: that replacement property be of equal or lesser value, replacement residence be in specific county, and the transfer occur only once. Removes similar replacement-value and location requirements on transfers for contaminated or disaster-destroyed property. Requires adjustments to the replacement property’s tax base, based on the new property’s value. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Annual property tax losses for cities, counties, and special districts of around $150 million in the near term, growing over time to $1 billion or more per year (in today’s dollars). Annual property tax losses for schools of around $150 million per year in the near term, growing over time to $1 billion or more per year (in today’s dollars). Increase in state costs for schools of an equivalent amount in most years. (17-0013.)

Proposition 6
ELIMINATES RECENTLY ENACTED ROAD REPAIR AND TRANSPORTATION FUNDING BY REPEALING REVENUES DEDICATED FOR THOSE PURPOSES. REQUIRES ANY MEASURE TO ENACT CERTAIN VEHICLE FUEL TAXES AND VEHICLE FEES BE SUBMITTED TO AND APPROVED BY THE ELECTORATE. INITIATIVE CONSTITUTIONAL AMENDMENT. Repeals a 2017 transportation law’s tax and fee provisions that pay for repairs and improvements to local roads, state highways, and public transportation. Requires the Legislature to submit any measure enacting specified taxes or fees on gas or diesel fuel, or on the privilege to operate a vehicle on public highways, to the electorate for approval. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Reduced annual state transportation tax revenues of $2.9 billion in 2018-19, increasing to $4.9 billion annually by 2020-21. These revenues would primarily have supported state highway maintenance and rehabilitation, local streets and roads, and mass transit. In addition, potentially lower transportation tax revenues in the future from requiring voter approval of such tax increases, with the impact dependent on future actions by the Legislature and voters. (17-0033.)

Proposition 7
AB 807 (Chapter 60, Statutes of 2018), Chu. Daylight saving time.
Existing federal law establishes the standard time of the United States for each of 9 zones and advances the standard time of each zone by one hour during the period commencing at 2 a.m. on the 2nd Sunday of March of each year and ending at 2 a.m. on the first Sunday of November of each year. Existing state law, the Daylight Saving Time Act, which was adopted as an initiative measure by the voters at the November 8, 1949, special election, provides that the standard time within the state is that which is known, described, and designated by federal law as United States Standard Pacific Time. The act also requires, from 1 a.m. on the last Sunday of April, until 2 a.m. on the last Sunday of October, the standard time within the state to be one hour in advance of United States Standard Pacific Time.

This bill would repeal the Daylight Saving Time Act and would require the standard time within the state to be that of the 5th zone designated by federal law as Pacific standard time. The bill would require the advancement of this time by one hour during the daylight saving time period commencing at 2 a.m. on the 2nd Sunday of March of each year and ending at 2 a.m. on the first Sunday of November of each year, and would authorize the Legislature to amend these provisions by a 2/3 vote to change the dates and times of the daylight saving time period, consistent with federal law. The bill would also authorize the Legislature to amend these provisions by a 2/3 vote to provide for the application of year-round daylight saving time when authorized by federal law.

The California Constitution authorizes the Legislature to amend or repeal an initiative statute by another statute that becomes effective when approved by the electors.
This bill would provide that it would become effective only upon approval of the voters. It would also provide for submission of this measure to the voters for approval at the next statewide general election.

Proposition 8
AUTHORIZES STATE REGULATION OF KIDNEY DIALYSIS CLINICS. LIMITS CHARGES FOR PATIENT CARE. INITIATIVE STATUTE. Limits amounts outpatient kidney dialysis clinics may charge for patient care and imposes penalties for excessive charges. Requires annual reporting to the state regarding clinic costs, patient charges, and revenue. Prohibits clinics from discriminating against patients based on the source of payment for care. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State administrative costs of around $1 million annually to be covered by increases in license fees on chronic dialysis clinics. State and local government savings largely associated with reduced government employee and retiree health benefits spending on dialysis treatment, potentially up to tens of millions of dollars annually. (17-0014.)

Proposition 9
DIVISION OF CALIFORNIA INTO THREE STATES. INITIATIVE STATUTE. Divides California into three states subject to approval by Congress. Assigns each county to a new state. Upon passage, directs Governor to request that Congress grant approval within twelve months. If Congress approves, directs Legislature to divide California’s assets and liabilities between the new states. Provides that, if Legislature fails to act within twelve months of Congressional approval, debts shall be distributed among new states based on population relative to California population as a whole, and assets within boundaries of each new state shall become the assets of that new state. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Assuming this measure is approved by voters and the federal government and allowed by the courts, all tax collections and spending by the existing State of California would end. California’s existing state assets and liabilities would be divided among three new states. These states would make their own decisions about state and local taxes and spending. (17-0018.)

Proposition 10
EXPANDS LOCAL GOVERNMENTSAUTHORITY TO ENACT RENT CONTROL ON RESIDENTIAL PROPERTY. INITIATIVE STATUTE. Repeals state law that currently restricts the scope of rent-control policies that cities and other local jurisdictions may impose. Allows policies that would limit the rental rates that residential-property owners may charge for new tenants, new construction, and single-family homes. In accordance with California law, provides that rent-control policies may not violate landlords’ right to a fair financial return on their rental property. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Unknown, but potentially significant, changes in state and local government tax revenues. Net decrease more likely than net increase. Potential increase in local government costs of up to tens of millions of dollars per year in the long term, likely paid by fees on owners of rental housing. (17-0041.)

Proposition 11
REQUIRES PRIVATE-SECTOR EMERGENCY AMBULANCE EMPLOYEES TO REMAIN ON CALL DURING WORK BREAKS. CHANGES OTHER CONDITIONS OF EMPLOYMENT. INITIATIVE STATUTE. Makes the labor law that entitles hourly employees to take work (meal and rest) breaks without being on call inapplicable to private-sector emergency ambulance employees. Regulates timing of meal breaks for these employees. Exempts employers from potential liability for violations of existing law regarding work breaks. Requires employers to pay for employees to be trained regarding certain emergency incidents, violence prevention, and mental health and wellness. Requires employers to provide employees with certain mental-health services. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Local government net savings likely in the tens of millions of dollars annually due to lower emergency ambulance contract costs. (17-0043.)

Proposition 12
ESTABLISHES NEW STANDARDS FOR CONFINEMENT OF CERTAIN FARM ANIMALS; BANS SALE OF CERTAIN NON-COMPLYING PRODUCTS. INITIATIVE STATUTE. Establishes new minimum space requirements for confining veal calves, breeding pigs, and egg-laying hens; requires egg-laying hens be raised in cage-free environment after December 31, 2021. Prohibits certain commercial sales of specified meat and egg products from animals confined in non-complying manner. Defines sales violations as unfair competition. Creates good faith defense for sellers relying upon written certification by suppliers that meat or animal products comply with new confinement standards. Requires State of California to issue implementing regulations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Potential decrease in state and local tax revenues from farm businesses, likely not to exceed the low millions of dollars annually. Potential state costs ranging up to ten million dollars annually to enforce the measure. (17-0026.)

Ballot Arguments
Arguments may be submitted for or against the measures. Arguments selected for the Official Voter Information Guide will be on public display between July 24 and August 13. If multiple arguments are submitted for a proposition, state law gives first priority to arguments written by legislators in the case of legislative measures and to proponents of an initiative or referendum; subsequent priority goes to bona fide citizen associations and then to individuals. No more than three signers are allowed to appear on an argument or rebuttal to an argument.

Ballot arguments cannot exceed 500 words and rebuttals to ballot arguments cannot exceed 250 words. All submissions should be typed and double-spaced. Arguments may be hand-delivered to the Secretary of State’s Elections Division at 1500 11th Street, 5th Floor, Sacramento, California 95814; faxed to (916) 653-3214; or emailed to VIGarguments@sos.ca.gov. If faxed or emailed, the original documents must be received within 72 hours. The deadline to submit ballot arguments is July 10 by 5:00 p.m. The deadline to submit rebuttals to the ballot arguments is July 19 by 5:00 p.m.

Candidate Statements
Secretary Padilla also invited candidate statements for inclusion in the Official Voter Information Guide. Candidates for United States Senate, statewide constitutional office, and Board of Equalization may buy space for a 250-word candidate statement in the voter guide. Candidates for state legislative office or the United States House of Representatives may purchase space for a candidate statement in a county sample ballot.

Candidates for state office must accept voluntary campaign expenditure limits in order to purchase space for a candidate statement.

The deadline to submit candidate statements to the Secretary of State’s office is July 18 by 5:00 p.m. Candidates for the United States House of Representatives, California State Senate, and California State Assembly have until August 10 to submit candidate statements to their county elections official for the local sample ballot in the county or counties in which the district lies.

For more information on ballot measures, candidate filing requirements, and election deadlines, please visit: http://www.sos.ca.gov/elections/upcoming-elections/general-election-november-6-2018/

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