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    6.    
LEGISLATION COMMITTEE
Meeting Date: 07/13/2020  
Subject:    November Ballot Measures
Submitted For: LEGISLATION COMMITTEE
Department: County Administrator  
Referral No.: 2020-15  
Referral Name: November Ballot Measures
Presenter: L. DeLaney and Nielsen Merksamer Team Contact: L. DeLaney, 925-335-1097

Information
Referral History:
The Legislation Committee considers and makes recommendations to the Board of Supervisors on measures that qualify for the November ballot.

June 25 was the last day for the Legislature to pass measures to qualify for the November 2020 ballot.

Below is a brief summary of these initiatives:

• 1880. (19-0022A1): Authorizes bonds to continue funding stem cell and other medical research.

• 1864. (19-0003): Changes requirements for transferring property tax base to replacement property. Expands business property reassessment.

• 1870. (19-0008A1): Increases funding for public schools, community colleges, and local government services by changing tax assessment of commercial and industrial property.

• 1840. (17-0044): Restricts parole for non-violent offenders. Authorizes felony sentences for certain offenses currently treated only as misdemeanors.

• 1862. (19-0001): Expands local governments’ authority to enact rent control on residential property.

• 1883. (19-0026A1): Changes employment classification rules for app-based transportation and delivery drivers.

• 1882. (19-0025A1): Authorizes state regulation of kidney dialysis clinics. Establishes minimum staffing and other requirements.

• 1879. (19-0021A1): Amends consumer privacy laws.

• 1856. (18-0009): Referendum to overturn a 2018 law that replaced money bail system with a system based on public safety risk.

Additionally, the measures below were passed by the Legislature and will qualify for the November 2020 ballot.

ACA 5 – Government preferences: The California Constitution, pursuant to provisions enacted by the initiative Proposition 209 in 1996, prohibits the state from discriminating against, or granting preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting. The California Constitution defines the state for these purposes to include the state, any city, county, public university system, community college district, school district, special district, or any other political subdivision or governmental instrumentality of, or within, the state. This measure would repeal these provisions.

ACA 6 – Elections, disqualification of voters: Would direct the Legislature to provide for the disqualification of electors who are serving a state or federal prison sentence for the conviction of a felony. This measure would also delete the requirement that the Legislature provide for the disqualification of electors while on parole for the conviction of a felony. The measure would provide for the restoration of voting rights upon completion of the prison term.

ACA 11 - The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act: This constitutional amendment, a compromise between the California Realtor’s Association and the California Professional Firefighters is aimed to spur housing development, close certain property tax loopholes that prevent seniors from moving and create two funds that will assist underfunded fire districts and protect county services. (ACA 11 moved through the legislative process in a matter of two weeks.)

Referral Update:

November 3, 2020 Statewide Ballot Measures

1. Proposition 14

1880. (19-0022A1)
AUTHORIZES BONDS TO CONTINUE FUNDING STEM CELL AND OTHER MEDICAL RESEARCH. INITIATIVE STATUTE.

Authorizes $5.5 billion in state general obligation bonds to fund grants from the California Institute of Regenerative Medicine to educational, non-profit, and private entities for: (1) stem cell and other medical research, therapy development, and therapy delivery; (2) medical training; and (3) construction of research facilities. Dedicates $1.5 billion to fund research and therapy for Alzheimer’s, Parkinson’s, stroke, epilepsy, and other brain and central nervous system diseases and conditions. Limits bond issuance to $540 million annually. Appropriates money from General Fund to repay bond debt, but postpones repayment for first five years. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State costs of $7.8 billion to pay off principal ($5.5 billion) and interest ($2.3 billion) on the bonds. Associated average annual debt payments of about $310 million for 25 years. The costs could be higher or lower than these estimates depending on factors such as the interest rate and the period of time over which the bonds are repaid. The state General Fund would pay most of the costs, with a relatively small amount of interest repaid by bond proceeds. (19-0022A1.)

2. Proposition 15

1870. (19-0008A1)
INCREASES FUNDING FOR PUBLIC SCHOOLS, COMMUNITY COLLEGES, AND LOCAL GOVERNMENT SERVICES BY CHANGING TAX ASSESSMENT OF COMMERCIAL AND INDUSTRIAL PROPERTY. INITIATIVE CONSTITUTIONAL AMENDMENT.

Increases funding for K-12 public schools, community colleges, and local governments by requiring that commercial and industrial real property be taxed based on current market value. Exempts from this change: residential properties; agricultural properties; and owners of commercial and industrial properties with combined value of $3 million or less. Increased education funding will supplement existing school funding guarantees. Exempts small businesses from personal property tax; for other businesses, exempts $500,000 worth of personal property. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Net increase in annual property tax revenues of $7.5 billion to $12 billion in most years, depending on the strength of real estate markets. After backfilling state income tax losses related to the measure and paying for county administrative costs, the remaining $6.5 billion to $11.5 billion would be allocated to schools (40 percent) and other local governments (60 percent). (19-0008.)

3. Proposition 16

ACA 5 (Resolution Chapter 23), Weber. Government preferences. (PDF)


4. Proposition 17

ACA 6 (Resolution Chapter 24), McCarty. Elections: disqualification of electors. (PDF)


5. Proposition 18

ACA 4 (Resolution Chapter 30), Mullin. Elections: voting age. (PDF)


6. Proposition 19

ACA 11 (Resolution Chapter 31), Mullin. The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. (PDF)


7. Proposition 20

1840. (17-0044, Amdt.#1)
RESTRICTS PAROLE FOR NON-VIOLENT OFFENDERS. AUTHORIZES FELONY SENTENCES FOR CERTAIN OFFENSES CURRENTLY TREATED ONLY AS MISDEMEANORS. INITIATIVE STATUTE.

Imposes restrictions on parole program for non-violent offenders who have completed the full term for their primary offense. Expands list of offenses that disqualify an inmate from this parole program. Changes standards and requirements governing parole decisions under this program. Authorizes felony charges for specified theft crimes currently chargeable only as misdemeanors, including some theft crimes where the value is between $250 and $950. Requires persons convicted of specified misdemeanors to submit to collection of DNA samples for state database. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state and local correctional costs likely in the tens of millions of dollars annually, primarily related to increases in penalties for certain theft-related crimes and the changes to the nonviolent offender release consideration process. Increased state and local court-related costs of around a few million dollars annually related to processing probation revocations and additional felony theft filings. Increased state and local law enforcement costs not likely to exceed a couple million dollars annually related to collecting and processing DNA samples from additional offenders. (17-0044.)

8. Proposition 21

1862. (19-0001)
EXPANDS LOCAL GOVERNMENTS' AUTHORITY TO ENACT RENT CONTROL ON RESIDENTIAL PROPERTY. INITIATIVE STATUTE.

Amends state law to allow local governments to establish rent control on residential properties over 15 years old. Allows rent increases on rent-controlled properties of up to 15 percent over three years from previous tenant’s rent above any increase allowed by local ordinance. Exempts individuals who own no more than two homes from new rent-control policies. In accordance with California law, provides that rent-control policies may not violate landlords’ right to a fair financial return on their property. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potential reduction in state and local revenues of tens of millions of dollars per year in the long term. Depending on actions by local communities, revenue losses could be less or more. (19-0001.)

9. Proposition 22

1883. (19-0026A1)
CHANGES EMPLOYMENT CLASSIFICATION RULES FOR APP-BASED TRANSPORTATION AND DELIVERY DRIVERS. INITIATIVE STATUTE.

Establishes different criteria for determining whether app-based transportation (rideshare) and delivery drivers are “employees” or “independent contractors.” Independent contractors are not entitled to certain state-law protections afforded employees—including minimum wage, overtime, unemployment insurance, and workers’ compensation. Instead, companies with independent-contractor drivers will be required to provide specified alternative benefits, including: minimum compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and sexual harassment policies. Restricts local regulation of app-based drivers; criminalizes impersonation of such drivers; requires background checks. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increase in state personal income tax revenue of an unknown amount. (19-0026A1)

10. Proposition 23

1882. (19-0025A1)
AUTHORIZES STATE REGULATION OF KIDNEY DIALYSIS CLINICS. ESTABLISHES MINIMUM STAFFING AND OTHER REQUIREMENTS. INITIATIVE STATUTE.

Requires at least one licensed physician on site during treatment at outpatient kidney dialysis clinics; authorizes Department of Public Health to exempt clinics from this requirement due to shortages of qualified licensed physicians if at least one nurse practitioner or physician assistant is on site. Requires clinics to report dialysis-related infection data to state and federal governments. Requires state approval for clinics to close or reduce services. 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 governments: Increased state and local health care costs, likely in the low tens of millions of dollars annually, resulting from increased dialysis treatment costs. (19-0025A1.)

11. Proposition 24

1879. (19-0021A1)
AMENDS CONSUMER PRIVACY LAWS. INITIATIVE STATUTE.

Permits consumers to: (1) prevent businesses from sharing personal information; (2) correct inaccurate personal information; and (3) limit businesses’ use of “sensitive personal information”—such as precise geolocation; race; ethnicity; religion; genetic data; union membership; private communications; and certain sexual orientation, health, and biometric information. Changes criteria for which businesses must comply with these laws. Prohibits businesses’ retention of personal information for longer than reasonably necessary. Triples maximum penalties for violations concerning consumers under age 16. Establishes California Privacy Protection Agency to enforce and implement consumer privacy laws, and impose administrative fines. Requires adoption of substantive regulations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased annual state costs of roughly $10 million for a new state agency to monitor compliance and enforcement of consumer privacy laws. Increased state costs, potentially reaching the low millions of dollars annually, from increased workload to DOJ and the state courts, some or all of which would be offset by penalty revenues. Unknown impact on state and local tax revenues due to economic effects resulting from new requirements on businesses to protect consumer information. (19-0021A1.)

12. Proposition 25

1856. (18-0009)
REFERENDUM TO OVERTURN A 2018 LAW THAT REPLACED MONEY BAIL SYSTEM WITH A SYSTEM BASED ON PUBLIC SAFETY RISK.

If this petition is signed by the required number of registered voters and timely filed, a referendum will be placed on the next statewide ballot requiring a majority of voters to approve a 2018 state law before it can take effect. The 2018 law replaces the money bail system with a system for pretrial release from jail based on a determination of public safety or flight risk, and limits pretrial detention for most misdemeanors. (18-0009)

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The Sacramento Bee summaries the measures as follows:

1. Proposition 14: Stem cell research

California voters are set to consider approval of a $5.7 billion bond to fund stem cell research.

If approved by voters, the bond would dedicate $1.5 billion to research of Alzheimer’s, Parkinson’s, strokes, epilepsy and other brain and central nervous system diseases and conditions.

California taxpayers would ultimately pay $7.8 billion to pay off the principal and interest on the bonds, according to the Attorney General’s Office summary.

2. Proposition 15: The ‘split-roll’ initiative

California voters will decide this November whether to amend the state’s 40-year-old property tax restrictions to exclude commercial and industrial properties.

The 1978 Proposition 13 locked in strict limits on property tax increases, which this “split roll” measure would partially undo.

If passed, Proposition 15 would generate billions in new annual revenue for K-12 public schools, community colleges and local governments, according to the Attorney General’s Office summary.

The measure would not affect residential properties, and commercial and industrial properties worth less than $3 million also would be excluded.

3. Proposition 16: Affirmative action

More than two decades after Californians voted to block affirmative action in the state, voters are set to reconsider their decision.

This measure would undo Proposition 209, which banned the consideration of race, sex, color, ethnicity or national origin from consideration in university admissions, public employment or contracting.

4. Proposition 17: Parolee voting rights restored

California voters will have to decide whether to parolees should be given back the right to vote.

This measure would restore the voting franchise to more than 40,000 formerly incarcerated Californians.

5. Proposition 18: 17-year-olds voting

California a handful of other states in allowing 17-year-olds to vote in primary elections.

This measure would allow teens to vote in a primary election as long as they turn 18 by the date of the general election.

6. Proposition 19: Property tax base transfers

California voters will decide whether to remove restrictions in place for Californians 55 and older or who are severely disabled or the victim of a wildfire or natural disaster to transfer their property tax base to a replacement residence.

This measure would remove the requirements that the replacement property be of equal or lesser value, that it be in an eligible county and that such a transfer occurs only once. Three such transfers would be allowed under this measure.

The measure also would adjust the replacement property’s tax base based on market value, limit the tax benefits “for certain transfers between family members” and expand the circumstances requiring business property reassessment.

The measure could bring tens of millions of dollars in revenue to local governments, “likely growing over time to a few hundred million dollars per year,” according to the Attorney General’s Office summary.

7. Proposition 20: Crackdown on crime

Could the criminal justice pendulum in California once more swing toward harsher sentences?

California voters will be faced with the choice of whether to authorize felony charges for theft crimes where the value is between $250 and $950.

The measure also would expand the list of offenses that would disqualify an inmate from receiving parole. The measure also would require people convicted of certain misdemeanors to submit to the collection of their DNA for the state’s database.

8. Proposition 21: Rent control redux

California voters will once again be given the opportunity to vote on rent control.

The measure would give local governments the authority to establish rent control on residential properties over 15 years old. However, landlords who own no more than two homes would be exempt from such policies.

A similar initiative appeared on the ballot in 2018 and was defeated by voters.

9. Proposition 22: A referendum on AB 5

While the union-backed Assembly Bill 5 amended California labor law to recognize many independent contractors as regular employees, California voters will get the chance this November to exempt rideshare and delivery drivers from that law.

This measure would allow drivers for companies like Lyft, Uber and Doordash to continue to be classified as independent contractors, not subject to laws governing minimum wage, overtime, unemployment insurance or workers compensation.

Instead, such drivers would be subject to “specified alternative benefits” such as minimum compensation and health care subsidies based on engaged driving time, vehicle insurance, safety training and sexual harassment policies, according to the Attorney General’s Office summary.

This measure also would criminalize impersonation of a rideshare driver and require background checks to become one.

10. Proposition 23: Dialysis reform

California dialysis clinics could be required to have at least one licensed physician on-site, under a measure to be voted on by Californians in November. The measure allows the state to exempt clinics from that requirement if there is a shortage of qualified licensed physicians

This measure also requires state approval before a dialysis clinic can close or reduce services, and prohibits such clinics from discriminating against clients based on the source of payment for care.

11. Proposition 24: Consumer privacy

California privacy laws could soon get even tougher.

The measure would change the criteria for which businesses must comply with state privacy laws. It also would empower Californians to prevent businesses from sharing personal information, to correct inaccurate personal information and to limit businesses’ use of “sensitive personal information” such as race, religion or sexual orientation.

The measure also would triple the maximum penalties for privacy violations where the affected person was under the age of 16.

Finally, the measure would create a new state agency, the California Privacy Protection Agency, “to enforce and implement consumer privacy laws, and impose administrative fines,” according to the Attorney General’s Office summary.

12. Proposition 25: Bail reform referendum

California is poised to eliminate cash bail requirements for pre-trial inmates, but a voter referendum might prevent that law from ever going into place.

This measure would give voters the chance to weigh in on whether the state should move to a cashless bail system that instead relies on an assessment of an inmates risk of fleeing or to public safety when determining whether they should be held. The measure also would limit pre-trial detention for most misdemeanors.


Read more here: https://www.sacbee.com/news/politics-government/capitol-alert/article243899482.html#storylink=cpy

Recommendation(s)/Next Step(s):
Consider the measures that have qualified for the November 3, 2020 general election and make recommendations on positions to the Board of Supervisors, as needed.
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