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2010 Propositions
June 1, 2010
Garden Grove Chamber Takes Action on June 8 Statewide
Propositions
The Garden Grove
Chamber of Commerce has reviewed and issued positions for the
June 2010 statewide election. The following statewide
Propositions are only the beginning of what is expected to be a
busy election year with many more Propositions expected in
November. The chamber will continue to be diligent in reviewing
each Proposition and the impact each may have on the Garden
Grove business community.
Proposition 13: Seismic Retrofitting
Garden Grove Chamber of Commerce Position: SUPPORT
Proposition 13 would prohibit tax assessors from re-evaluating
new construction for property tax purposes when the new
construction is consider earthquake safety improvements. Tax
assessors would only be allowed to re-evaluate for property tax
purposes after the building has been sold.
The Chamber believes this would be a benefit to owners of
existing structures that have complied with earthquake
retrofitting laws. Proposition 13 would also ensure equal
treatment of property owners who incorporate the seismic safety
improvements.
Proposition 14: Elections: Open Primaries
Garden Grove Chamber of Commerce Position: SUPPORT
Proposition 14 would require that candidates run in a single
primary open to all registered voters, with the top two
vote-getters meeting in a runoff. This system would take place
in the 2012 elections. This Proposition would not affect
Presidential and political party leadership positions.
The Chamber believes that the Open Primary System continues the
reforming of state election system and parity in elections.
Proposition 14 builds on other chamber supported Propositions
that help to reform the election system such as Proposition 11
(2008) which passed and created the Citizens Redistricting
Commission.
Proposition 15: California Fair Election Act
Garden Grove Chamber of Commerce Position: OPPOSE
Proposition 15 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 Proposition is currently the subject of
litigation.
The Chamber has historically opposed tax increases on any single
industry. The chamber believes that even though Proposition 15
is a pilot program aimed at only one particular political
office, the ultimate goal would be to spread this effort to
other political offices and increase the taxing of the lobby
industry to pay for public-financed elections. A similar measure
in Vermont was ruled to violate the United States Constitution.
Proposition 16: Taxpayers Right to Vote Act
Garden Grove Chamber of Commerce Position: SUPPORT
Proposition 16 is a state constitutional amendment, if passed,
would require a two-thirds voter approval before local
governments can provide electricity service to customers or
implement a community choice electricity program using public
funds or bonds.
The Chamber believes that inexperienced local governments should
not enter the risky power wholesaling business at a time when
these very same local governments are finding challenges to
balance the local budget. Furthermore, Proposition 16 does not
preclude local governments from creating a local government
controlled utility, it only asks the voters to approve it first.
This was a main reason for supporting Proposition 16.
Proposition 17: Continuous Coverage Auto Insurance Discount
Act
Garden Grove Chamber of Commerce Position: SUPPORT
Proposition 17 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 Chamber supports this effort as many other states currently
allow a discount for continuous coverage when switching between
insurance companies. The chamber also believes that this type of
offer will lead to consumers having access to competitive or
lower rates if an insured driver decides to change their
insurance company.
January 10, 2010
Ballot Initiatives
Coming Soon!
In the coming months the Garden Grove Chamber of Commerce will
begin reviewing and taking positions on the many ballot
initiatives for 2010. Many of the initiatives aim to impact
business in one form or another. The Chamber, through its hard
working and policy dedicated members of the Government Affairs
Committee (GAC), will spend time on each issue that may impact
the Garden Grove business community and release a formal
position.
“2010 should 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 Garden Grove business
community,” stated Dr. Les Malo, Chair of the Garden Grove
Chamber’s Government Affairs Committee.
The following is only a short synopsis of potential ballot
measures for 2010. The first measures have qualified for their
respective election.
Property tax: New Construction Exclusion: Seismic Retrofitting
Qualified for the June 2010 Primary Election
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.
California Fair Elections Act of 2008
Qualified for the June 2010 Primary Election
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 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.
California Top Two Candidates Open Primary Act
Qualified for the June 2010 Primary Election
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.
The Safe, Clean, and Reliable Water Supply Act of 2010
Qualified for the November 2010 General Election
The bond authorization appears in SBX7 2 (Cogdill; D-Modesto).
Bond funding includes $3 billion for new water storage
(including reservoirs), $2.25 billion for Delta restoration,
$1.785 billion for conservation and watershed protection
projects throughout the state, $1.4 billion for water supply
reliability, $1.25 billion for water recycling and conservation,
$1 billion for groundwater protection and water quality
projects, and $455 million for drought relief.
Repeal Corporate Tax Loopholes Act
This measure would repeal recently-enacted tax benefits, the
elective single sales factor, net operating loss (NOL) carryback,
and tax credit sharing. It would additionally repeal the
recently-enacted expansion of the net operating loss carryover
from 10 to 20 years.
The Local Voter Control and Government Accountability Act
Removes Proposition 13 protections from property owners and
imposes a “split roll” tax treatment for commercial properties.
If enacted, this measure would remove the one percent cap for
property taxes for the purpose of raising funds to serve and
repay General Obligation bonds for public infrastructure.
Additionally, the measure would reduce the two-thirds vote
requirement for all special taxes to 55 percent, including
parcel taxes (based upon per parcel rather than based upon
value).
Protect Homeowners and Close Corporate Tax Loopholes Act
Imposes a split roll tax treatment for commercial property and
requires all non-residential commercial properties to be
immediately reassessed according to “full cash value,” without
regard to whether change of ownership has occurred. It also
requires reassessment at current fair market value at least
every three years.
Education and Taxpayer Fairness Act
Imposes a split roll tax treatment and increases taxes on
commercial properties. The measure would increase the one
percent tax rate for “non-residential” properties to 1.55
percent in order to fund education.
Sinclair Fix Initiative
Reduces burdensome tax-like fees on businesses by reversing the
overly-broad, vague definition of “fee” set forth in the
landmark California Supreme court case Sinclair Paint v.
State Board of Equalization.
Voters FIRST Act for Congress
This proposed Act would extend the successful Prop 11 provisions
from 2008 to give the Citizens Redistricting Commission the
additional authority to draw new boundaries for U.S.
congressional districts in 2011. It is anticipated that the
Voters FIRST Act for Congress will be in circulation in early
January to gather voter signatures in order to qualify for the
November 2010 general election.
Taxpayers Right to Vote Act
The act requires two-thirds voter approval before local
governments may use public funds, bonds or other indebtedness to
start up electric delivery service, expand electric delivery
service into a new territory or implement a Community Choice
Aggregation (CCA) program. Californians generally receive their
electric delivery service from one of three types of providers:
investor-owned utilities (IOUs), local publically owned electric
utilities (LPOUs), and eclectic service providers (ESPs).
Local Taxpayer, Public Safety and Transportation Act
This measure would prohibit the State from taking, borrowing or
redirecting local taxpayer funds dedicated to public safety,
emergency response and other vital local government services.
Furthermore, the act would protect vital, dedicated
transportation and public transit funds from state raids.
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