In the coming months the Southwest California
Legislative Council will begin reviewing and taking
positions on several 2010 ballot measures, many of which
aim to impact business in one way or another.
“2010 will be another busy year of ballot measures for
our state. We will be diligent in our work as we
consider each measure and how each will impact the
Southwest California business community,” said Roger
Ziemer, Chair of the Southwest California Legislative
Council.
Proposition 13: Property Tax: New Construction
Exclusion: Seismic Retrofitting
The California Constitution generally limits ad valorem
taxes on real property to 1% of the full cash value of
that property. For purposes of this limitation, "full
cash value" is defined as the assessor's valuation of
real property as shown on the 1975-76 tax bill under
"full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or
a change of ownership has occurred. This measure would
instead exclude from the definition of "newly
constructed" the portion of an existing structure that
consists of the construction or reconstruction of
seismic retrofitting components. This measure would
delete the existing exclusion for structures constructed
of unreinforced masonry bearing wall construction, and
the existing grant of authority to the Legislature to
exclude certain seismic retrofitting improvements or
improvements utilizing earthquake hazard mitigation
technologies.
Proposition 14: Elections: Open Primaries
This proposed measure mirrors the development of the
successful “open primary” election system that is in
place in Washington State. This system allows the top
two vote getters, regardless of party, to compete in the
general election and has been validated by the U.S.
Supreme Court. This measure would require the
Legislature to provide for partisan elections for
presidential candidates, political party committees, and
party central steering committees. This measure would
designate the Superintendent of Public Instruction as a
nonpartisan office. If the measure is approved by the
voters, it would become operative on January 1, 2011.
Proposition 15: Political Reform Act of 1974:
California Fair Elections Act of 2008.
This initiative was placed on the ballot by legislation
(AB 583/Hancock). AB 583 was signed by the Governor and
became effective on January 1, 2009. It requires the
California Secretary of State to place a ballot measure
on the June 8, 2010 statewide primary election ballot
which, if passed, would institute a pilot program of
publicly-financed elections for the office of California
Secretary of State. The publically-financed election
would be funded by taxing lobbyists, lobbying firms and
lobbyist employers. The measure is currently the subject
of litigation. A similar measure in Vermont was ruled to
violate the U.S. Constitution. An Arizona court has also
struck down lobbyist “fees” used to fund a public
campaign financing program.
Proposition 16: New Two-Thirds Vote Requirement for
Local Public Electricity Providers.
Initiative Constitutional Amendment. Proposition 16
would require local governments to obtain the approval
of two-thirds of the voters before providing electricity
to new customers or expanding such service to new
territories if any public funds or bonds are involved.
The measure would require the same two-thirds vote to
provide electricity through a community choice program
if any public funds or bonds are involved.
Proposition 17: Allows Auto Insurance Companies to
Base Their Prices in Part on a Driver’s History of
Insurance Coverage
Initiative Statute. This measure amends Proposition 103,
passed by the voters in 1988, to authorize the use of an
additional discount on premiums for automobile insurance
policies. In particular, the act would allow an insurer
to offer a “continuous coverage” discount to new
customers who have maintained their coverage while they
previously were customers of another insurer. Continuous
coverage is defined to also include applicants who
experienced up to a 90-day lapse in coverage in the past
five years for any reason other than nonpayment of their
insurance premiums. The continuous coverage discount
would be based on the length of time the applicant or
insured has been continuously covered. Children residing
with a parent may qualify for the discount based on
their parent’s eligibility.
