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Home My WebLink About1988 Election (5402)RESOLUTION NO. 22-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RESCINDING PREVIOUSLY ADOPTED RESOLUTIONS CONCERNING A SPECIAL MUNICIPAL ELECTION FOR THE PURPOSE OF SUBMITTING TO THE VOTERS A PROPOSITION CONCERNING ISSUING GENERAL OBLIGATION BONDS FOR ORANGE MEMORIAL PARK WHEREAS, the City Council of the City of South San Francisco previously took actions to submit a general obligation bond measure to the voters at a special municipal election to be held April 12, 1988; and WHEREAS, the City Council has since changed its mind and determined not to submit the measure to the voters; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it hereby rescinds the following resolutions: Resolution No. 131-87, A Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco. Resolution No. 8-88, A Resolution Calling and Ordering a Special Muni- cipal Election To Be Held On April 12, 1988 For The Purpose of Submitting To The Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park). Resolution No. 9-88, A Resolution Requesting the Services of the San Mateo County Clerk and Authorizing the Filing of an Impartial Analysis, Written Argument and Statements Thereon For the City Proposition. BE IT FURTHER RESOLVED that this resolution shall take effect upon its adoption by a two-thirds vote of all the members of the City Council, and that the City Clerk is directed to transmit a copy of this resolution to the County Clerk. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 17th day of February , 19 88 by the fo)lowing vote: AYES: Councilmembers Mark N. Addieoo, Gus Nicolopulos, Robert~ Cerri Teglia, and Jack Draqo NOES: Councilmember Richard A. Halley ABSTAIN: None ABSENT: None ~ATTEST: POSTED ON BULLETIN BOARD THROUGH APRIL 22, 1988 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. The followin9 deadlines apply for filin9 arguments and rebut- tals with the City Clerk: Impartial Analysis not exceeding 500 words - Deadline was 1/25/88 Arguments for and against the Measure not exceeding 300 words - deadline is 2/4/88 Rebuttals for and against the Measure not exceeding 250 words - Deadline is 2/15/88 2/15/88 begins the ten day public examination period The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987, and a regular meeting held on January 13, 1988. Barbara A. Battaya, Cii~ Clerk City of South San Francisco Dated: February 1, 1988 POSTED ON BULLETIN BOARD THROUGH APRIL 22, 1988 CENTRAL RE¢ORD~ IMPARTIAL ANALYSIS OF CITY ATTORNEY, CITY OF SOUTH SAN FRANCISCO The California Constitution authorizes a city to issue general obligation bonds if approved by the 2/3 vote of the electorate. General obligation bonds are paid by an annual charge against all parcels of real property, including residential, con~nercial, and industrial, within the City. Currently the City of South San Francisco does not have any outstanding general obligation bonds. State law permits a debt level of a maximum of 15% of total assessed valuation. The City of South San Francisco proposes to finance acquisition of additional land and improvements to the land acquired for the expansion of Orange Memorial Park. Approximately 11.5 acres of property would be acquired and developed. This would expand the existing park by more than 50%. General obligation bonds are typically the most cost effective bond that a city can issue. The interest rate for the bonds cannot exceed the legal limit of 12% and in the present market, interest will be in the 6%-8% range. Other financing alternatives will probably be more costly. The City of South San Francisco proposes to issue up to $5 million of general obligation bonds to finance certain park and recreation improvements. If the bonds are repaid over a 20 year period, the annual tax levy for each $1,000 of assessed valuation would be 17.5 cents; therefore, for a property assessed at $100,000, the yearly tax would be $17.50. If the bonds are repaid over a 25 year period, the annual tax levy for each $1,000 of assessed valuation would be 16.3 cents; therefore, for a property assessed at $100,000 the yearly tax would be $16.30. These annual amounts are subject to reductions over the 20 or 25 year period of the bonds as the total assessed value of property within the city increases. Two pieces of property would be purchased: approximately 4.6 acres known as the Mazzanti property and approximately 6.9 acres known as the California Water Service property. Both of these properties lie immediately adjacent to the existing Orange Memorial Park. The cost of purchasing the Mazzanti property is $1,875,000. This amount is the result of negotiations between the City and the Mazzantis and is payable over a six year period. As of January 25, 1988, the cost to purchase the California Water Service property has not been precisely determined, but is estimated not to exceed $1,503,000. California Water Service will retain easements for access to and maintenance of the three water wells on the property. Development of the property acquired would include demolishing the existing greenhouses, grading the property, providing adequate drainage and irrigation improvements, and installing turf, walkways, parking and fencing. Additional improvements proposed include security lighting, softball field lighting, bleachers for a maximum of three ballfields, play equipment structures, and a combination restroom/snack shack facility. POSTED ON BULLETIN BOARD THROUGH APRIL 22, 1988 ARGUMENT IN FAVOR OF MEASURF Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing the size by 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, base- ball, soccer, tennis, bocce ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and develop- ment of two parcels of land providing 11.5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, could be developed for private uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. Remember industrial and commercial properties will pay 60% of the bill for this community mmenity. A bond issue is being proposed because that is the only prac- tical financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better place to live - vote Yes on A ~ /s/ Jack Drago Jack Drago, Mayor /s/ Roberta Cerri Teglia Roberta Cerri Teglia, Vice Mayor /s/ Mark N. Addiego Mark N. Addiego, Councilman /s/ Richard A. Haffey Richard A. Haffey, Councilman /s/ Gus Nicolopulos Gus Nicolopulos, Councilman "ARGUMENTS IN SUPPORT OR OPPOSITION OF THE MEASURE ARE THE OPINIONS OF THE AUTHORS" POSTED ON BULLETIN BOARD THROUGH APRIL 22, 1988 OFFICE OF tHE CItY CLERK (415) 877-8518 March 10, 1988 County Clerk Warren Slocum Hall of Justice & Records Redwood City, CA 94063 Re: Cancellation of Special Election Proposition on April 12, 1988 for South San Francisco Dear Mr. Slocum: Please be advised that the South San Francisco City Council at their regular meeting of March 9, 1988 adopted Ordinance No. 1030-88, "An Ordinance Repealing Ordinance No. 1027-88 and Cancelling the Submission of a Proposition of Incurring Bonded Debt for the Purpose of the Acquisition, Construction and Completion of Orange Memorial Park Improvements to the Qualified Voters of the City of South San Francisco." I am enclosing a certified copy of the above-referenced Ordinance for your records. Very truly yours, Barbara A. Battaya City C1 erk Enclosure 400 GRAND AVENUE - P.O. BOX 711 - 94083 ORDINANCE NO. 1030-88 AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. Ordinance No. 1027-88 Repealed. Ordinance No. 1027-88, adopted January 12, 1988, ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements to the qualified voters of the City of South San Francisco, is hereby repealed. SECTION 2. Transmittal to County. Upon adoption, the City Clerk is directed to transmit a copy of this ordinance to the County Clerk. SECTION 3. Adoption, Effective Date, and Publication. Pursuant to Government Code Section 43608 this ordinance has been adopted by a two-thirds vote of all the members of the City Council. This ordinance is adopted pursuant to Government Code Section 36937 and being an ordinance relating to an election shall take effect inmmdiately upon its adoption. This ordinance shall be published once in the Enterprise-Journal, a newspaper of general circulation in the City of South San Francisco. adjourned Introduced at a/regular meeting of the City Council of the City of South San Francisco, held the 17th day of February , 1988 . Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held the 9th day of AYES: March , lg 88 , by the following vote: Councilmembers Mark N. Addiego, Gus Nicolopulos, Roberta Cerri Teglia, and Jack Drago Councilmember Richard A. Halley ATTEST: NOES: ABSTAIN: None ABSENT: None As Mayor of the City of South San Francisco, Ordinance this 9th day of March /s/ Barbara A. Battaya ~lty Clert do hereby approve the foregoing 19 88 . /~/ ,~rk Drago Mayor STATE OF CALIFORNIA SS. COUNTY OF SAN h~ATEO l, Barbera A. Batteye, C!~y C~erk of the ci+~ of Seu~h San ~ran- Circe, Coun~ of San )Jafeo, ~fate of California, an ex-c;*:cTe Cier~ o~ fha C:~v Council fhereo(, do hereby ce~ffy thai fha above and going i~ a full, true eno correct copy of 0rdinance Naa 1030-88 fha ori,=~pe) af which ls on ~ile in my o{[ice, and that IN WITNESS VCHEREOF I ',~ve hereunto set my hand 10 Ma BARBARA A. BATTAYA C:fy C~rk and Ex-officio C~erk~f the ~ity Council Ci~ Cler~ By Depu~ Ci~ C)erk O~FICE OF THE CITY CLERK (415) 877-8518 March 10, 1988 Ms. Edna Donaldson San Mateo Times P. O. Box 5400 San Mateo, CA 94402 Subject: Legal Publication for the Enterprise Journal - ORDINANCE NO. 1030-88, AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO Dear Ms. Donaldson: Enclosed for publication in the South San Francisco Enterprise Journal. Please Publish on: Wednesday, March 16, 1988 Please acknowledge receipt of this advertisement by signing below and send a Proof of Publication to this Office. Very truly yours, Barbara A. Battaya City Clerk Enclosures The undersigned acknowledges receipt of the above referenced notice. South San Francisco Enterprise Journal 400 GRAND AVENUE - P.O. BOX 711 - 94083 ORDINANCE NO. 1030-88 AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. Ordinance No. 1027-88 Repealed. Ordinance No. 1027-88, adopted January 12, 1988, ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements to the qualified voters of the City of South San Francisco, is hereby repealed. SECTION 2. Transmittal to County. Upon adoption, the City Clerk is directed to transmit a copy of this ordinance to the County Clerk. SECTION 3. Adoption, Effective Date, and Publication. Pursuant to Government Code Section'43608 this ordinance has been adopted by a two-thirds vote of all the members of the City Council. This ordinance is adopted pursuant to Government Code Section 36937 and being an ordinance relating to an election shall take effect i~mnediately upon its adoption. This ordinance shall be published once in the Enterprise-Journal, a newspaper of general circulation in the City of South San Francisco. adjourned Introduced at a/regular meeting of the City Council of the City of South San Francisco, held the 17th day of February , 1988 . Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held the 9th day of March , 19 88 , by the following vote: AYES: Councilmembers Mark N. Addiego, Gus NicoloPulos, Roberta Cerri Teglia, and Jack Drago Councilmember Richard A. Haffey NOES: ABSTAIN: None ABSENT: None ~V~ATTEST: /s/ Barbara A. Battaya city Cleric As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 9th day of March , 19 88 . /~/ ,~rk Dragn mayor -2- March 9, 1988 TO: SUBJECT: ACTION: The Honorable City Council Cancellation of Special Municipal Election for the Expansion of Orange Park Motion to Waive Further Reading of Ordinance and Motion to Adopt Ordinance At the City Council meeting of February 10, 1988, the City Council directed staff to prepare this ordinance to rescind previous actions regarding the proposed bond measure for the expansion of Orange Park. This ordinance, which was introduced at the February 17, 1988 meeting of the City Council, repeals ordinance No. 1027-88, cancelling the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements. Respectfully submitted, Mark Lewis City Manager Elayna McCarty ~/ Assistant to the City Manager ML:EBM:mgo sta February 24, 1988 TO: SUBJECT: ACTION: The Honorable City Council Cancellation of Special Municipal Election for the Expansion of Orange Park Motion to Waive Further Reading of Ordinance and Motion to Adopt Ordinance At the City Council meeting of February 10, 1988, the City Council directed staff to prepare this ordinance to rescind previous actions regarding the proposed bond measure for the expansion of Orange Park. This ordinance, which was introduced at the February 17, 1988 meeting of the City Council, repeals ordinance No. 1027-88, cancelling the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements. Respectfully submitted, Mark Lewis City Manager Elayna McCarty Assistant to the City Manager ML:EBM:mgo ORDINANCE NO. 1030-88 AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. Ordinance No. 1027-88 Repealed. Ordinance No. 1027-88, adopted January 12, 1988, ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements to the qualified voters of the City of South San Francisco, is hereby repealed. SECTION 2. Transmittal to County. Upon adoption, the City Clerk is directed to transmit a copy of this ordinance to the County Clerk. SECTION 3. Adoption, Effective Date, and Publication. Pursuant to Government Code Section 43608 this ordinance has been adopted by a two-thirds vote of all the members of the City Council. This ordinance is adopted pursuant to Government Code Section 36937 and being an ordinance relating to an election shall take effect immediately upon its adoption. This ordinance shall be published once in the Enterprise-Journal, a newspaper of general circulation in the City of South San Francisco. adjourned Introduced at a/regular meeting of the City Council of the City of South San Francisco, held the 17th day of February , 1988 . Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held the 9th day of March , 19 88 , by the following vote: AYES: Councilmembers Mark N. Addiego, Gus NicoloPulos, Roberta Cerri Teglia, and Jack Drago Councilmember Richard A. Haffey NOES: ABSTAIN: None ABSENT: None ~ATTEST: /s/ Barbara A. Battaya City Cler~ As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 9th day of March , 19 88 . /~/ ,~rk nrago mayor -2- OF~'ICE OF THE C1TY CLERK (4].5) 877-85].8 March 10, 1988 Ms. Edna Donaldson San Mateo Times P. O. Box 5400 San Mateo, CA 94402 Subject: Legal Publication for the Enterprise Journal - ORDINANCE NO. 1030-88, AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO Dear Ms. Donaldson: / Enclosed for publication intthe South San Francisco Enterprise Journal. Please Publish on: Wednesday, March 16, 1988 ~/ Please acknowledge receipt of this advertisement by signing below and send a Proof of Publication to this Office. Very truly yours, Barbara A. Battaya City Clerk Enclosures The undersigned acknowledges receipt of the above referenced notice. South San Francisco Enterprise Journal 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFFICE OF THE CITY CLERK (415) 877-8518 February 18, 1988 Ms. Devota Nelson 420 Briarwood Dr. South San Francisco, CA 94080 Dear Ms. Nelson: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the elec- tion process. I look forward to working with you at other elections held in this City. Si ncerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 94083 CITY CLERK (4]-5) 8??-85].8 February 18, 1988 South San Francisco Fire Department 201 Baden Avenue So. San Francisco, CA 94080 Gentlemen: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place (Fire Station #4 at 2350 Galway Place), I would like to personally thank you for your dedication in serving the City of South San Francisco in the election process. I look for- ward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFFICE OF THE CITY CLERK (4~5) 877285~.8 February 18, 1988 Mr. Peterson Roger Williams School 307 Magnolia Avenue So. San Francisco, CA 94080 Dear Mr. Peterson: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 940~3 OFFICE OF THE CITY CLERK (41,5) 877-85].8 February 18, 1988 Ms. Carole Mazzotti 246 Wicklow Dr. So. San Francisco, CA 94080 Dear Ms. Mazzotti: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Si ncerel y, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 71] - 94083 OFFICE OF THE city CLERK (4~5) 877-8518 February 18, 1988 Ms. Denise M. Himm 25 Capay Circle So. San Francisco, CA 94080 Dear Ms. Himm: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Si ncerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 940~3 OFFICE OF THE CITY CLERK (415) 877-8518 february 18, 1988 Mr. Marshall Goldkuhl 95 Oriskany Drive San Mateo, CA 94402 Dear Mr. Goldkuhl: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place (Trailer Court #3 Washroom, 1700 E1Camino, So. San Francisco), I would like to personally thank you for your dedication in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFFICE OF THE CiTY CLERK (41.5) 877-8518 February 18, 1988 St. Augustine Church 3700 Callan Blvd. So. San Francisco, CA 94080 Gentlemen: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 71! - 94083 OFFICE OF THE CITY CLERK (4Z5) 877-85~.8 February 18, 1988 Mr. Robert F. Dominge So. San Francisco Unified School District 398 B Street So. San Francisco, CA 94080 Dear Mr. Oominge: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. The following school sites were to have been used as pollin§ places: Parkway Jr. High School Library Baden High School Auditorium Alta Loma Jr. High School Library Foxridge School Gym Sunshine Gardens School, Rm. 7 Hillside School Milti-Purpose Rm. Spruce School, Rm. 2 Ponderosa School Multi-Purpose Rm. Alta Loma Jr. High School Library Westborough Jr. High School Faculty Dining Rm. Martin School, Rm. 12 Los Cerritos School, School Rm. Buri Buri School Faculty Rm. Foxridge School Gym Very truly yours, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFFICE OF THE CITY CLERK (415) 877-8518 February 18, 1988 Mater Dolorosa Church 307 Willow Avenue So. San Francisco, CA 94080 Gentlemen: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place (at 1044 Miller Avenue), I would like to personally thank you for your dedication in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City C1 erk 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFFICE OF THE: CITY CLERK (4.[5) 877-85]8 February 18, 1988 Ms. Ida Penna 313 Aspen Avenue So. San Francisco, CA 94080 Dear Ms. Penna: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place, I would like to personally thank you for your dedica- tion in serving the City of South San Francisco in the elec- tion process. I look forward to working with you at other elections held in this City. Si ncerely, Barbara A. Battaya City Clerk 400 GRJ~D AVENUE o P.O. BOX 711 - 94083 OFFICE OF THE C~TY CLERK (415) 877-85.18 February 18, 1988 Ms. Ginny Haynes South San Francisco Recreation Department 33 Arroyo Dr. So. San Francisco, CA 94080 Dear Ginny: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your facility as a polling place (Municipal Services Bldg., Open Rm.), I would like to personally thank you for your dedication in serving the City of South San Francisco in the election process. I look for- ward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City C1 erk 400 GRAND AVENUE - P.O. BOX 711 - 94083 MATER DOLOROSA CHURCH 307 WILLOW AU SO SAN FRAN CA ~4080 MATER DOLOROSA PARISH HALL i'~'44 ilI~,...,-Ei~,~v"'" S S F C 03 SO SAN FRAN UNIF SCH DIST _,98 B ST SO SAN FRAN CA ?4080 C 06 PARKWAY OR HiGH SCHOOL LIBRARY 825 PARK WY S S F V C 09 BADEN HIGH SCHOOL AUDITORIUM 825 SOUTHWOOD DR S S F SC) SAN FRAN UNIF S£H DIST 398 B ST SO SAN FRAN CA 940&0 C SUNSHINE GARDENS SCHOOL - RM 7 1200 MILLER AV S S F SO SAN FRAN U?,tlF SCH D!ST 398 B ST SO SAN FRAN CA 94050 HILLSIDE SCHOOL M P R 1400 HILLSIDE BL S S F C SO SAN FRAN UNIF SCH DtST 398 B ST SO SAN FRAN CA 94080 SPRUCE SCHOOL - RM 2 501 SPRUCE AV S S F c~ WMS SCHAT]: MR PEi'ERSON _,1_,~ MAGNULiA~¥'" SO SAN FEAN CA '740~0 ,ROGER WILLIAMS SCHOOL -' SCH RM M~o,~uLIA ~. [~R~ND AV S S F SAN SAr4 F'R Al4 CA PONDEROSA SCHOOL - MPR "'>~' PONDERO~ RD o ~ F 07 MATER DOLOROSA CHURCH 307 WILLOW AV SO SAN FRAN CA 94080 MATER DOLOROSA PARISH HALL 1044 MILLER AV S S F SO SAN FRAN UNIF SCH DIS] _,98 BoT SO SAN FRAN CA '~08£ MARTIN SCHOOL - RM 12 35 SCHOOL ST S S F O2 CiTY OF SSF ATT: B BATTAYA 400 GRAND AV SO SAN FRAN CA 94080 C SO SAN FRANCISCO CITY HALL FOYER ~OL, GRAND AV S b F C 05 SO SAN FRAN UNIF SCH DIST 3?8 B ST SO SAN FRAN CA 9'4080 C lOS ~ u..~r, Iiua uuHOOL - SCHOOL RM ~Ii} ORANSE AV S S F O8 DETTY R 224 NORTHWOOD DR SO SAN FRAN CA SEUBERT GARAGE ~24 NORTHWOOD DR S S F C 11 14 DEVOTA NELSON 420 BRIARWOOD DR SO SAN FRAN CA NELSON GARAGE 420 BRIARWOOD DR SSS SO SAN FRAN UNiF SCH D!ST 398 B ST SO SAN FRAN CA 94'-'8[!,_, I_'3. C 18 ALTA ~.CH~ JR HIGH SCHOOL iiBRARY 116 ROMNEY AV S S F SO SAN ~RAN EEC DEPT %'5 ARROYO DR SO SAN FRAN CA ?4080 C 2t MUNICIPAL SERVICES BLDG - OPEN RM 33 ARROYO DR S S F SO SAN FRAN ~IRE DEPT- 20~ BADEN AV SA SAN FRAN CA 94080 .SCi SAN FRAN UNIF SCH D]ST srj SAN FRAN CA 94080 ~. c7 r~.,l~,IDGm SCitOOL GYh 2323 W. EXFOkD AV S S F CAROLE MAZZOTTI 246 WiCKLOW DR SO SAN FRAN CA MAZZOTTI GARAGE 246 WiCKLOW DR 9 4 0 80 S S F C 16 SO SAN FRAN UNIF SCH DIST ~98 B ST SO SAN FRAN CA C 19 ALTA LOMA JR HIGH SCHOOL LIBRARY i16 ROMNEY AV S S F DENISE M HIMM 25 CAPAY CL SO SAN FRAN HIMM GARAGE ~5 CAPAY CIRCLE CA 94080 S S F C 22 SO SAN FEAN UNIF SCH DIST _,98 B ST SO SAN FRAN CA 94080 C 25 WESTBOROUGH OR HI SCH FACLTY DiN RM 2570 WESTBOROUGH BL S S F MARSHALL GOLDKUHL 95 ORISKANY DR SAN MA]'EO CA '-,' 440 '2 TRAILER COURT - ~3 WASHROOM 170F; EL CAMiNO RL S S F C SO SAN FRAN UNIF SCH DIST 398 B ST SO SAN FRAN CA 94080 BURl BUR1 SCHOOL FACUTLY RM t2"' EL _, CAMPO DR S S F C ST AUGUSTINm CHURCH 3700 CALLAN BL SO SAN FRAN CA 94i]~0 C ST AUGUSTINE CHURCH - MAIN HALL _,7Uu CALLAN BL S S F SO SAN FRAN UNIF SCH DIST 398 B~,'"? SO SAN FRAN CA FOXRIDGE SCHOOL GYM ~5~5 WEXFORD AL! S S z 17 26 OFfiCE OF THE C~T'f CLERK (415) $77-8518 February 18, 1988 Ms. Margaret R. Mac Kenzie 521 Larch Ave. So. San Francisco, CA 94080 Dear Ms. Mac Kenzie: This letter is to advise you that the South San Francisco City Council cancelled the Special Municipal Election to have been held on April 12, 1988 through the adoption of Resolution No. 22-88, at their adjourned regular meeting of February 17, 1988. Even though the City will not need your services at this time as a precinct worker, I would like to personally thank you for your dedication in serving the City of South San Francisco in the election process. I look forward to working with you at other elections held in this City. Sincerely, Barbara A. Battaya City Clerk 400 GRAND AVENUE - P.O. BOX 711 - 94083 Miss Phillis I. Alonso 245 Ferndale Ave. So. San Francisco, CA 94080 Mrs. Sonya L. Peters 1309 Crestwood Dr. So. San Francisco, CA 94080 Mary C. Huber 734 Larch Ave. So. San Francisco, CA 94080 Marceli Mrzyglocki 265 Oakcrest Ave. So San Francisco, CA 94080 Mrs. Gertrude H. Bignardi 479 Forest View Dr. So. San Francisco, CA 94080 Ms. Isabella Yahraes 1401 Hillside Blvd. So. San Francisco, CA 94080 Joseph O'Connell 289 Gardenside Ave. So San Francisco, CA 94080 James L. Gilchrist 1248 Crestwood Dr. So. San Francisco, CA 94080 Mrs. Ruth Bretz 848 Larch Ave. So. San Francisco, CA 94080 Mrs. Nadine E. Cohen llSO Miller Ave. So San Francisco, CA 94080 Ermen J. Rozzi 247 Holly Ave. So. San Francisco, CA 94080 Mrs. Mary Franco 1005 Hemlock Ave. So. San Francisco, CA 94080 John H. Duplantier 269 Sequoia Ave. So San Francisco, CA 94080 Mrs. F. Irene Rozzi 247 Holly Ave. So. San Francisco, CA 94080 Mrs. E1 sa L. White 123 Drake Ave. So. San Francisco, CA 94080 Mrs. Fanella R. Duplantier 269 Sequoia Ave. So San Francisco, CA 94080 Mrs. Dorothy A. Skoufos ll07 Miller Ave. So. San Francisco, CA 94080 Mrs. Virginia M. Mercker 725 Hemlock Ave. So. San Francisco, CA 94080 Mrs. Ida A. Alonso 245 Ferndale Ave. So San Francisco, CA 94080 Walter E. Clausen 279 Holly Ave. So. San Francisco, CA 94080 John P. Oquinn 513 Hemlock Ave. So. San Francisco, CA 94080 Gerald J. Gudaitis 1227 Baywood Ave. So San Francisco, CA 94080 Mrs. Rita R. Gudaitis 262 Westview Dr. So. San Francisco, CA 94080 Mrs. Carla Scrivani 820 Hillside Blvd. So. San Francisco, CA 94080 Florence C. Stark 1253 Crestwood Dr. So San Francisco, CA 94080 Dennis C. Grant 862 Stonegate Dr. So. San Francisco, CA 94080 Timothy J. Brennan 82 Irving St. So. San Francisco, CA 94080 Mrs. Leonar Cisneros 437 Evergreen Dr. So San Francisco, CA 94080 Mrs. Joan N. Hartley 251 Forest View Dr. So. San Francisco, CA 94080 Mrs. Dorma Bush 809 Hillside Blvd. So. San Francisco, CA 94080 Salvador Ci sneros 437 Evergreen Dr. So. San Francisco, CA 94080 Mrs. Lois P. Hirsch 820 Ridge Ct. So. San Francisco, CA 94080 Margaret R. Mac Kenzie 521 Larch Ave. So. San Francisco, CA 94080 A1 fred F. Urbanus 92 Jefferson Ave. So. San Francisco, CA 94080 Alio De Zordo 869 Olive Ave. So. San Francisco, CA 94080 Mrs. Antoinette L. Greco 541 Magnolia Ave. So. San Francisco, CA 94080 Mrs. Mary L. Lonati 254 Armour Ave. So. San Francisco, CA 94080 Miss Ida Penna 313 Aspen Ave. So. San Francisco, CA 94080 Mrs. Julia J. Gaudette 543 Palm Ave. So. San Francisco, CA 94080 Mrs. Sara Louise K. Wood P. O. Box 296 Brisbane, CA 94005 Ma n i ~ ~- 609 Linden .... So. San Francisco, CA 94080 Mrs. Lydia Abriani 615 Palm Ave. So. San Francisco, CA 94080 Beverly Smith ll Lewis Ave. So. San Francisco, CA 94080 Mrs. Lucille L. Daubert 230 8th Lane So. San Francisco, CA 94080 Mrs. Rose Barsi 646 Palm Ave. So. San Francisco, CA 94080 Conrad M. Burnett 128 Gardiner Ave. So. San Francisco, CA 94080 Mrs. Barbara A. Pendell 2229 Barrington Ct. So. San Francisco, CA 94080 Mrs. Louise A. Brusco 635 Palm Ave. So. San Francisco, CA 94080 Martin Ludwig P. O. Box 1502 San Bruno, CA 94066 Robert W. Russ 533 Keoncrest Dr. So. San Francisco, CA 94080 Mrs. Mafalda Colombo 537 Poplar Ave. So. San Francisco, CA 94080 Ms. Laurel Seymour 202 Armour Ave. So. San Francisco, CA 94080 Emilio A. Fontana 505 Baden Ave. So. San Francisco, CA 94080 Mrs. Vincenzina Curti 569 Magnolia Ave. So. San Franc sco, CA 94080 Jack F. Stuart 910 Linden Ave. So. San Francisco, CA 94080 Ms. Harriette S. Johnson 458 Baden Ave. So. San Francisco, CA 94080 Mrs. Juanita G. De Zordo 548 Magnolia Ave. So. San Francisco, CA 94080 Carmen Arias 128 Gardiner Ave. So. San Francisco, CA 94080 John Zuffi 466 Baden Ave. So. San Francisco, CA 94080 Mrs. Lena A. Dimminger 709 Park Way So. San Francisco, CA 94080 Mrs. Eleanor E. Mason 431 Beech Ave. So. San Francisco, CA 94080 Mrs. Rosanna Cesca 532 Cortesi Ave. So. San Francisco, CA 94080 Mrs. Mildred Fanucchi 528 Magnolia Ave. So. San Francisco, CA 94080 Katherine Danesi 719 Hickory Pl. So. San Francisco, CA 94080 Mrs. Irene E. Evenson 600 Pi ne So. San Francisco, CA 94080 Mrs. Palmina M. Cavalli 528 Orange Ave. So. San Francisco, CA 94080 Mrs. Altha L. Dagler 735 Park Way So. San Francisco, CA 94080 Ms. Helen Jean Minor 312 A Street So. San Francisco, CA 94080 Mrs. Mollie Olivas 8 Wilms Ave. So. San Francisco, CA 94080 Mrs. Mary Galeotti 539 Orange Ave. So. San Francisco, CA 94080 Mrs. Gertrude E. Capps ll2 Fir Ave. So. San Francisco, CA 94080 Mrs. Carmen M. Anguiano 17 Portola Ave. So. San Francisco, CA 94080 Mrs. Catherine T. Moothart 773 Palm Ave. So. San Francisco, CA 94080 Samuel Steinert ll6 Fir Ave. So. San Francisco, CA 94080 Alphonse A. Seubert 224 Northwood Dr. So. San Francisco, CA 94080 Mrs. Elenora Zipp 204 Laurel Ave. So. San Francisco, CA 94080 Mrs. Margaret L. Symonds 129 Fir Ave. So. San Francisco, CA 94080 Mrs. Betty R. Seubert 224 Northwood Dr. So. San Francisco, CA 94080 Mrs. Norma Guglielmetti 232 C Street So. San Francisco, CA 94080 Jack Zancanella 135 Fir Ave. So. San Francisco, CA 94080 Mrs. Ona E. Shatraw 163 Northwood Dr. So. San Francisco, CA 94080 Mrs. Paula J. Walker 234 A Street So. San Francisco, CA 94080 Mrs. Betty F. Lee 138 Fir Ave. So. San Francisco, CA 94080 Mrs. Wanda M. Stafford 234 Wildwood Dr. So. San Francisco, CA 94080 Mrs. Betty J. Walsh 349 B Street So. San Francisco, CA 94080 Vernon R. Capps ll2 Fir Ave. So. San Franc sco, CA 94080 Ms. Jane C. Keane 234 Hazelwood Dr. So. San Francisco, CA 94080 Mrs. Vivian M. Dantonio 304 A Street So. San Francisco, CA 94080 Mrs. Evie E. Galindo 107 S. Magnol a Ave. So. San Francisco, CA 94080 Mrs. Helen L. Mc Carthy 234 Northwood Dr. So. San Francisco, CA 94080 Mrs. Marcia J. Durgin 204 B Street So. San Francisco, CA 94080 Mrs. Irene Mann 103 Fir Ave. So. San Francisco, CA 94080 Arthur J. Patrick 102 Manor Dr. So. San Francisco, CA 94080 Mrs. Wilma Keating 333 B Street So. San Francisco, CA 94080 Mrs. Ruth W. Fink 28 Sonora Ave. So. San Francisco, CA 94080 Mrs. Elsa M. Riccomi 160 Hazelwood Dr. So. San Francisco, CA 94080 Ms. Marie Long 320 C Street So. San Francisco, CA 94080 Mrs. Kathleen A. Mealing 141 Francisco Dr. So. San Francisco, CA 94080 Mrs. Josephine E. Compani 232 Wildwood Dr. So. San Francisco, CA 94080 E1 don A. Mork 3460 Carter Dr. 106 So. San Francisco, CA 94080 Mrs. Josephine M. Putkey 2242 Shannon Dr. So. San Francisco, CA 94080 Mrs. Dolores E. Nelson 2695 Tipperary Ave. So. San Francisco, CA 94080 Donna D. Pineda 3550 Carter Dr. 82 So. San Francisco, CA 94080 Walter F. West 2490 Olympic Dr. So. San Francisco, CA 94080 Mrs. Christa P. C. Sullivan 2755 Shannon Dr. So. San Francisco, CA 94080 Charles B. Vaughn 3766 Callan Blvd. So. San Francisco, CA 94080 Mrs. Doris S. Wilson 2950 Carlow Way So. San Francisco, CA 94080 Mrs. Ruth M. Hansen 2201 Kenry Way So. San Francisco, CA 94080 Mrs. Wilma R. Taylor 3949 Savannah Ct. So. San Francisco, CA 94080 Theodore A. Wilson 2950 Carlow Way So. San Francisco, CA 94080 Viola Ainslie 867 Byron Dr. So. San Francisco, CA 94080 Kristina M. Steele 2569 Greendale Dr. So. San Francisco, CA 94080 Mrs. Helen J. Bertolani 2645 Donegal Ave. So. San Francisco, CA 94080 John A. Ainslie 867 Byron Dr. So. San Francisco, CA 94080 Albert N. Waters 2266 Shannon Dr. So. San Francisco, CA 94080 Mrs. Trinidad Tabaldo 2570 Tipperary Ave. So. San Francisco, CA 94080 Mrs. Leona E. Pizziconi lO71 Sunnyside Dr. So. San Francisco, CA 94080 Ms. Carmen P. Robinson 3390 Oakmont Dr. So. San Francisco, CA 94080 Robert C. Bertolani 2645 Donegal Ave. So. San Francisco, CA 94080 Mrs. Betty L. Simonetti 316 Holly Ave. So. San Francisco, CA 94080 Elmon M. Elmore 2575 Bantry Ln. So. San Francisco, CA 94080 Chung Min Chen 2530 Donegal Ave. So. San Francisco, CA 94080 Mrs. Barbara C. Klinker 371 Holly Ave. So. San Francisco, CA 94080 Elizabeth E. Jones 2440 Tara Ln. So. San Francisco, CA 94080 Mrs. Wei chin Chen 2530 Donegal Ave. So. San Francisco, CA 94080 Mrs. Nora M. Powers 324 Heather Way So. San Francisco, CA 94080 Mrs. Lillian A. Melius 3360 Oakmont Dr. So. San Francisco, CA 94080 Mrs. Rose R. Haar 2460 Tipperary Ave. So. San Francisco, CA 94080 Mrs. Charlotte E. Russell 363 Heather Way So. San Francisco, CA 94080 Donald J. Melius 3360 Oakmont Dr. So. San Francisco, CA 94080 Mrs. Jane P. Hale 2730 Shannon Dr. So. San Francisco, CA 94080 Mrs. Donna J. Sartori 1039 Grand Ave. So. San Francisco, CA 94080 Mrs. June M. Rodondi 225 Wildwood Dr. So. San Francisco, CA 94080 Mrs. Lorraine P. Davis 54 Greenwood Dr. So. San Francisco, CA 94080 Mrs. Marion M. Bragg 321 Valencia Dr. So. San Francisco, CA 94080 Mrs. Marie M. Brandfass 122 Ravenwood Wy So. San Francisco, CA 94080 Mrs. Doris M. Laine 410 Wildwood Dr. So. San Francisco, CA 94080 Edward J. Corrigan 446 Alhambra Rd. So. San Francisco, CA 94080 Simon S. Danczak 305 Rockwood Dr. So. San Francisco, CA 94080 Mrs. Marion H. Leitner 425 Hazelwood Dr. So. San Francisco, CA 94080 Mrs. Estelle Falkowski 343 Avalon Dr. So. San Francisco, CA 94080 A1 fred P. Fourie lO1 Springwood Wy So. San Francisco, CA 94080 Donald B. Nelson 420 Briarwood Dr. So. San Francisco, CA 94080 James J. Mc Tiernan 376 Avalon Dr. So. San Francisco, CA 94080 Mrs. Nancy Meintz 126 Sherwood Wy So. San Francisco, CA 94080 Mrs. Devota M. Nelson 420 Briarwood Dr. So. San Francisco, CA 94080 Ms. Louise C. Senatore 322 Valencia Dr. So. San Francisco, CA 94080 Mrs. Lola Picchi 122 Sherwood Wy So. San Francisco, CA 94080 Miss Joan M. Pauley 349 Rockwood Dr. So. San Francisco, CA 94080 Harry E. Dora.nt 2319 Galway Dr. So. San Francisco, CA 94080 Guilio Picchi 122 Sherwood Wy So. San Francisco, CA 94080 Mrs. Jane J. Petrovsky 411 Hazelwood Dr. So. San Francisco, CA 94080 Mrs. Phyllis E. Eisenman 3801 Kent Wy So. San Francisco, CA 94080 Mrs. Mi ri am F. Repetto 417 Briarwood Dr. So. San Francisco, CA 94080 Mrs. Martha H. Sauer 107 Rosewood Wy So. San Francisco, CA 94080 Roberto J. Guillen 3936 Geddes Ct. So. San Franc sco, CA 94080 Mrs. Betty M. Thanos 315 Rockwood Dr. So. San Francisco, CA 94080 Mrs. June S. Heise 399 Ponderosa Rd. So. San Francisco, CA 94080 Julie Li 3978 Fairfax Wy So. San Francisco, CA 94080 Mrs. June S. Chames 16 Greenwood Dr. So. San Francisco, CA 94080 Mrs. Norma J. Muniz 435 Alhambra Rd. So. San Francisco, CA 94080 Miss Kathleen J. Mc Kay 2367 Greendale Dr. So. San Francisco, CA 94080 Mrs. Mary C. Dalli 428 Wildwood Dr. So. San Francisco, CA 94080 Mrs. Darlene C. Venturini 423 Alhambra Rd. So. San Francisco, CA 94080 Miss Rosa Lee Bennett 2319 Galway Dr. So. San Francisco, CA 94080 Mrs Marian G. Zuchelli 2301 Galway Dr. So. San Francisco, CA 94080 Mrs. Socorro H. Arroyo 828 W. Orange Ave. So. San Franc sco, CA 94080 Mrs. Benjamina L. Marte 17 Los Flores Ave. So. San Francisco, CA 94080 Mrs Mildred J. Eskelsen 4 Hillcrest Ct. So San Francisco, CA 94080 Mrs. Isabelle M. Massolo 612 Lassen St. So. San Francisco, CA 94080 Mrs. Marie A. Peterson 16 E1 Campo Dr. So. San Francisco, CA 94080 Mrs Olga .M. Morse 414 Fairway Dr. So San Francisco, CA 94080 Mrs. Marjorie Z. Baker 739 Haven Ave. So. San Franc sco, CA 94080 Zane E. Webb 224 Bonita Ave. So. San Francisco, CA 94080 Mrs Emma Jeanne Ragsdale 826 W. Orange Ave. So San Francisco, CA 94080 Mrs. Emily S. Clouatre 233 Bryce Ave. So. San Franc sco, CA 94080 Mrs Dorothy M. Molloy ll2 Indio Dr. So. San Francisco, CA 94080 Mrs Patricia V. Samuelson 406 Fairway Dr. So San Francisco, CA 94080 Mrs. Diva M. Del Grande 3 Carlsbad Ct. So. San Francisco, CA 94080 Mrs Lonnie C. Guinn 244 E1 Campo Dr. So. San Francisco, CA 94080 Mrs Ann L. Crotty 302 Fairway Dr. So San Francisco, CA 94080 Mrs. Emma D. Ruggiero 19 Del Paso Dr. So. San Francisco, CA 94080 Mrs Denise M. Himm 25 Capay Cl. So. San Francisco, CA 94080 Irving V. Eskelsen 4 Hillcrest Ct. So San Francisco, CA 94080 Mrs. Bonnie M. Tarbox 326 Alta Loma Dr. So. San Francisco, CA 94080 Mrs Florence M. Rath 207 Indio Dr. So. San Francisco, CA 94080 Mrs. Trudy Golden 12 Hillcrest Ct. So. San Francisco, CA 94080 Marvin L. Tarbox 326 Alta Loma Dr. So. San Francisco, CA 94080 Mrs Julia Sinor 7 Capay Cl. So. San Francisco, CA 94080 Mrs. Lida Mazzali 816 W. Orange Ave. So. San Francisco, CA 94080 Mrs. Mary L. Behymer 219 Carmelo Ln. So. San Francisco, CA 94080 Mrs Louise Zatarain 218 Indio Dr. So. San Francisco, CA 94080 Mrs. Elizabeth M. Mc Mahon 421 Fairway Dr. So. San Francisco, CA 94080 Mrs. Evelyn L. Casagrande 121 Camaritas Ave. So. San Francisco, CA 94080 William E. Gookin ll6 Alta Mesa Dr. So. San Francisco, CA 94080 Mrs. Rose M. Minnick 107 Knoll Cl. So. San Francisco, CA 94080 Robert E. Dobie 305 Alta Loma Dr. So. San Francisco, CA 94080 Mrs. Doris Baillie 21 Verano Dr. So. San Francisco, CA 94080 Mrs. Ann H. Tognazzini 358 Arroyo Dr. So. San Francisco, CA 94080 Mrs. Evelyn Weih 261 Alta Mesa Dr. So. San Francisco, CA 94080 Robert E. Kunst 556 Zita Dr. So. San Francisco, CA 94080 A. Helene Tognazzini 358 Arroyo Dr. So. San Francisco, CA 94080 Walter Boitano 308 Arroyo Dr. So. San Francisco, CA 94080 Mrs. Frances M. Kunst 556 Zita Dr. So. San Francisco, CA 94080 Mrs. Muriel Anderson 104 Verano Dr. So. San Francisco, CA 94080 Ms. Dorothy W. Dombroski 229 Alta Mesa Dr. So. San Francisco, CA 94080 Mrs. Gloria R. Matteucci 648 Joaquin Dr. So. San Francisco, CA 94080 Mrs. Vera Bassford 207 Verano Dr. So. San Francisco, CA 94080 James B. Fosberg 120 Lomitas Ave. So. San Francisco, CA 94080 Richard H. Scheele 641 Theresa Dr. So. San Francisco, CA 94080 Mrs. Gertrude O'Keefe 206 Lomitas Ave. So. San Francisco, CA 94080 Mrs. Barbara A. Brown 153 San Felipe Ave. So. San Francisco, CA 94080 Mrs Theresa M. Burns 564 Keoncrest Dr. So. San Francisco, CA 94080 Larry Funk 251 Cuesta Dr. So. San Francisco, CA 94080 Mrs. Maureen A. Dan 358 Del Monte Ave. So. San Francisco, CA 94080 Mrs. Dorothy F. Carr 435 Serra Dr. So. San Francisco, CA 94080 Mrs. Margaret J. Gaines 129 Lomitas Ave. So. San Francisco, CA 94080 Lloyd V. Erion 33 Clara Ave. So. San Francisco, CA 94080 Mrs Margaret H. Jensen 556 Keoncrest Dr. So. San Francisco, CA 94080 Mi ss Linda K. Glynn ll9 Lomitas Ave. So. San Francisco, CA 94080 Mrs. Martha A. Lucia 168 Nyla Ave. So. San Francisco, CA 94080 Mrs Sydney S. Nakamura 161 Crown Cl. So. San Francisco, CA 94080 Mrs. Mildred L. Koster 226 Alta Mesa Dr. So. San Francisco, CA 94080 Mrs. Jeane A. Price 137 La Crosse Ave. So. San Francisco, CA 94080 Mrs Sandra K. Ahlbach 143 Hilton Ave. So. San Francisco, CA 94080 John H. Lowe 225 Verano Dr. So. San Francisco, CA 94080 Mrs. Janet E. Keeney 213 Romney Ave. So. San Francisco, CA 94080 Mrs Leona M. Gee 102 Crown Cl. So. San Francisco, CA 94080 Miss Lydia R. Pozzato ll2 Lomitas Ave. So. San Francisco, CA 94080 Mrs. Kathleen L. Kokezas 656 Joaquin Dr. So. San Francisco, CA 94080 George A. Jewell 63 Crown Cl. So. San Francisco, CA 94080 Mrs. Eleanor R. Clark 3766 Cork Pl. So. San Francisco, CA 94080 Miss Laurie Mac Intosh 40 Bradford Dr. So. San Francisco, CA 94080 Edward T. Murphy 433 Alida Way 523 So. San Francisco, CA 94080 Harry G. Hermann 2600 Leix Wy. So. San Francisco, CA 94080 Mrs. Connie Wills 32 Bradford Dr. So. San Francisco, CA 94080 Harry Solomon 328 Alida Way So. San Francisco, CA 94080 Mrs. Juanita B. Hilario 2616 Leix Wy. So. San Francisco, CA 94080 Donald M. Davis 17 Graystone Dr. So. San Francisco, CA 94080 Dorothy R. Cicio 416 Alida Way 216 So. San Francisco, CA 94080 Virgil C. Ohlrich 3788 Erris Ct. So. San Francisco, CA 94080 Mrs. Phyllis May Hill 433 Alida Way 517 So. San Francisco, CA 94080 Ms. Libertad Velasco 122 Buxton Ave. So. San Francisco, CA 94080 Mrs. Madeline M. Ohlrich 3788 Erris Ct. So. San Francisco, CA 94080 Mrs. Georgette G. Mammini 390 Alida Way ll So. San Francisco, CA 94080 Enoch W. Henderson 139 Longford Dr. So. San Francisco, CA 94080 Albert L. Safine 2648 Tyrone Ct. So. San Francisco, CA 94080 Mrs. Augusta M. Mann 6 Dana Ct. So. San Francisco, CA 94080 Mrs. Gloria M. Jiggetts 123 Adrian Ave. So. San Francisco, CA 94080 Jonathan Sorgen 3708 Athy Dr. So. San Francisco, CA 94080 Lam P. Balopulos 433 Alida Way 706 So. San Francisco, CA 94080 Evangeline Spry 107 Buxton Ave. So. San Francisco, CA 94080 Robert H. Clark 3766 Cork Pl. So. San Francisco, CA 94080 Mrs. Elsie G. Beaubien 264 Avalon Dr. So. San Francisco, CA 94080 Mrs. Joan F. Ward 236 Mansfield Dr. So. San Francisco, CA 94080 Mrs. Joan B. Gilmore 2666 Duhallow Wy. So. San Francisco, CA 94080 William R. Beck ll Dana Ct. So. San Franc sco, CA 94080 Reid H. Kennedy 236 Mansfield Dr. So. San Francisco, CA 94080 Joy L. Luster 2728 Duhallow Wy. So. San Francisco, CA 94080 Mrs. Rena M. Beck ll Dana Ct. So. San Franc sco, CA 94080 Mrs. Gloria A. Galli 231 Longford Dr. So. San Francisco, CA 94080 Renata Masciovecchio 2740 Kilconway Ln. So. San Francisco, CA 94080 Mrs. Thelma J. Mills 416 Alida Way So. San Francisco, CA 94080 Mrs. Elizabeth M. Larnach 215 Mansfield Dr. So. San Francisco, CA 94080 Mrs. Carole Mazzotti 246 Wicklow Dr. So. San Francisco, CA 94080 Mrs. Enes L. Quinlan 318 Altamont Dr. So. San Francisco, CA 94080 Joseph P. Armato 413 Avalon Dr. So. San Francisco, CA 94080 Bruno P. Mazzotti 246 Wicklow Dr. So. San Francisco, CA 94080 Ms. Theresa L. Flores 362 King Dr. So. San Francisco, CA 94080 Mrs. Ann M. Armato 413 Avalon Dr. So. San Francisco, CA 94080 Mrs. Verna Parker 202 Dundee Dr. So San Francisco, CA 94080 Mrs. Gloria F. Flores 362 King Dr. So. San Francisco, CA 94080 Emanuele N. Damonte 442 Zamora Dr. So San Francisco, CA 94080 James S. Claar 717 Circle Ct. So San Francisco, CA 94080 Mrs. Gertrude P. Mc Callum 323 Serra Dr. So. San Francisco, CA 94080 Mrs. Carolyn C. Damonte 442 Zamora Dr. So San Francisco, CA 94080 Mrs. Patricia A. Drosky 719 Circle Ct. So San Francisco, CA 94080 Mrs. Ellen M. Mc Vanner 335 Serra Dr. So San Francisco, CA 94080 Mrs. Natalia M. Garcia 313 De Nardi Way So San Francisco, CA 94080 William D. Fuqua 738 Circle Ct. So San Francisco, CA 94080 Arleen M. Balestreri 200 Southcliff Ave. So San Francisco, CA 94080 Mrs. Lorraine A. Murphy 353 Granada Dr. So San Francisco, CA 94080 Miss Ida R. Guadagni 674 Grand Ave. So San Francisco, CA 94080 Mrs. Edith M. Bass 338 Altamont Dr. So San Francisco, CA 94080 Mrs. Janet Saunders 419 Avalon Dr. So San Francisco, CA 94080 Robert E. Lozar 61 7 4th Ln. So San Francisco, CA 94080 Donald A. O'Brien 1700 E1 Camino Real So San Francisco, CA 94080 Mrs. Marjorie Adasiewicz 360 Alta Vista Dr. So San Francisco, CA 94080 Mrs. Ada P. Nicolopulos 104 Orange Ave. So San Francisco, CA 94080 Mrs. Bernice Rodriguez 1700 E1 Camino Real 21-14 So San Francisco, CA 94080 Wesley V. Fitzgerald 429 Valverde Dr. So San Francisco, CA 94080 Mrs. Mary A. Andersen 669 Miller Ave. So San Francisco, CA 94080 Woodrow W. Smith 1700 El Camino Real 5 18 So San Francisco, CA 94080 Miss Cynthia J. Scola 460 Corrido Way So San Francisco, CA 94080 Mrs. Dorothy L. Quill 318 Catherine Dr. So. San Francisco, CA 94080 Mrs. Bonnie Barry 1700 E1 Camino Real 10 1 So. San Francisco, CA 94080 Mrs. Mary E. Laurenson 3659 Erris Ct. So. San Francisco, CA 94080 OFF~CE OF THE CITY CLERK (4].5) 877-8518 February 18, 1988 Ms. Eunice Brecht, Clerk San Mateo County Board of Supervisors Hall of Justice and Records Redwood City, CA 94063 Re: Cancellation of Special Municipal Election April 12, 1988 Dear Ms. Brecht: Please be advised, that the South San Francisco City Council at their adjourned regular meeting of February 17, 1988 adopted Resolution No. 22-88, A Resolution rescinding previously adopted resolutions concerning a Special Municipal Election for the purpose of submitting to the voters a proposition concerning issuing general obligation bonds for Orange Memorial Park. The Council also had a first reading on an Ordinance to cancel the submission of a proposition of incurring bonded debt which will be adopted at the regular meeting of February 24, 1988. I am enclosing a certified copy of said Resolution No. 22-88° Very truly yours, Barbara A. Battaya City Clerk Enclosure cc: Election Department - Maureen Service Printing Co. 400 GRAND AVENUE - P.O. BOX 711 - 94083 RESOLUTION NO. 22-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RESCINDING PREVIOUSLY ADOPTED RESOLUTIONS CONCERNING A SPECIAL MUNICIPAL ELECTION FOR THE PURPOSE OF SUBMITTING TO THE VOTERS A PROPOSITION CONCERNING ISSUING GENERAL OBLIGATION BONDS FOR ORANGE MEMORIAL PARK WHEREAS, the City Council of.the City of South San Francisco previously took actions to submit a general obligation bond measure to the voters at a special municipal election to be held April 12, 1988; and WHEREAS, the CitYCouncil has since changed its mind and determined not to submit the measure to the voters; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it hereby rescinds the following resolutions: e e Resolution No. 131-87, A Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco. Resolution No. 8-88, A Resolution Calling and Ordering a Special Muni- cipal Election To Be Held On April 12, 1988 For The Purpose of Submitting To The Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park). Resolution No. 9-88, A Resolution Requesting the Services of the San Mateo County Clerk and Authorizing the Filing of an Impartial Analysis, Written Argument and Statements Thereon For the City Proposition. BE IT FURTHER RESOLVED that this resolution shall take effect upon its adoption by a two-thirds vote of all the members of the City Council, and that the City Clerk is directed to transmit a copy of this resolution to the County Clerk. I hereby certify that the foreg6ing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 17th day of February , 19 88 by the fo~owing vote: AYES: Councilmembers Mark N. Addieoo. Gus Nicolopulos. Roberta Cerri Teglia, and Jack DraQo NOES: Councilmember Richard A. Haffey ABSTAIN: None ABSENT: None ~'~ATTEST: STATE OF CALIFORNIA L SS. COUNIY or- SAN MAIEO I, Barbara A. Battaya, C~ty Clerk of the clh/ of Sou~h San Fran- cisco, County of San Mateo, State of CellJornia, an ex-offlc~o Clerk of the City Counril thereof, do hereby cer~iTV that the above end fore- goir*g is ~ tull, true and <~,~,,c~ ,q, py of Resolution No. 22-88 EAR,ARA A. BA[IA~A Ci?~ Cle~ and E~ oIHc;~ (Sle:k ~ the C~Jy Council of the City City Clerk ~uty C~ty ~)erk /s/ Barbara A. Battaya City clerk ARGUMENT IN FAVOR OF MEASURE Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing the size by 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, base- ball, soccer, tennis, bocce ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and develop- ment of two parcels of land providing 11.5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, could be developed for private uses other than public recreation-purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. Remember industrial and commercial properties will pay 60% of the bill for this community mmenity. A bond issue is being proposed because that is the only prac- tical financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better place to live - vote Yes on__~ /s/ Jack Dra§o Jack Drago, Mayor /s/ Roberta Cerri Teglia Roberta Cerri Teglia, Vi ce Mayor /s/ Mark N. Addiego Mark N. Addiego, Councilman /s/ Richard A. Haffey Richard A. Haffey, Councilman /s/ Gus Nicolopulos Gus Nicolopulos, Councilman "ARGUMENTS IN SUPPORT OR OPPOSITION OF THE MEASURE ARE THE OPINIONS OF THE AUTHORS" The undersigned authors of the primary argument in favor of ballot measure at the Special Municipal Election for the City of South San Francisco to be held on April 12, 1988 hereby state that such argument is true and correct to the best of their knowledge and belief. Jack Drago, Mayor Date Roberta Cerri Teglia, Vice Mayor Date Mark N. Addiego, Councilman Date Richard A. Haffey, Councilman Gus Nicolopulos, Councilman Date Date ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. The followin§ deadlines apply for filing arguments and rebut- tals with the City Clerk: Impartial Analysis not exceeding 500 words - Deadline was 1/25/88 Arguments for and against the Measure not exceeding 300 words - deadline is 2/4/88 Rebuttals for and against the Measure not exceeding 250 words - Deadline is 2/15/88 2/15/88 begins the ten day public examination period The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987, and a regular meeting held on January 13, 1988. Barbara A. Battaya, Cit~Clerk City of South San Francisco Dated: February 1, 1988 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxima- tely 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987. Dated: Barbara A. Battaya, City Clerk City of South San Francisco December 21, ~z~t INTER-OFFICE MEMORANDUM October 21, 1987 To: Subject: Honorable City Council CC: Election Timetable for a 4/12/88 Special Municipal Election City Manager City Attorney Dir. of Rec. & Comm. Dev. From: City Clerk The following schedule will apply for the above mentioned election. Council Election Days Before Date Meeting Action To Be Taken 4/12/88 120-109 12/14/87-1/6/88 12/9/87 Council adopts a Resolution calling a Special Election with measure(s) set forth in the exact wording that will appear on the ballot, and adoption of a Resolution requesting services from the County Clerk. (Please note that there will not be a County election with which to consolidate.) 4/12/88 88 1/15/88 N/A Last day to deliver to Board of Supervisors the Resolutions calling the election and requesting services. 4/12/88 88 1/15/88 N/A Arguments Open 4/12/88 78 1/25/88 N/A Close of Arguments. Analysis of Measure(s) Needed By City Clerk. 4/12/88 78 1/25/88 N/A Rebuttals Open. 4/12/88 68 2/4/88 N/A Close of Rebuttals. 4/12/88 68 2/4/88 N/A Beginning of Ten Day Public Examination. 4/12/88 58 2/14/88 N/A Close of Public Examination A projection is purposely not being given for a 6/7/88 election in that the County will not allow consolidation with the Primary Election. Barbara A. Battaya INTER-OFFICE MEMORANDUM October 21, 1987 To: Subject: Honorable City Council CC: Election Timetable for a 4/12/88 Special Municipal Election City Manager City Attorney Dir. of Rec. & Comm. Dev. From: City Clerk The following schedule will apply for the above mentioned election. Council Election Days Before Date Meeting Action To Be Taken 4/12/88 120-109 12/14/87-1/6/88 12/9/87 Council adopts a Resolution calling a Special Election with measure(s) set forth in the exact wording that will appear on the ballot, and adoption of a Resolution requesting services from the County Clerk. (Please note that there will not be a County election with which to consolidate.) 4/12/88 88 1/15/88 N/A Last day to deliver to Board of Supervisors the Resolutions calling the election and requesting services. 4/12/88 88 1/15/88 N/A Arguments Open 4/12/88 78 1/25/88 N/A Close of Arguments. Analysis of Measure(s) Needed By City Clerk. 4/12/88 78 1/25/88 N/A Rebuttals Open. 4/12/88 68 2/4/88 N/A Close of Rebuttals. 4/12/88 68 2/4/88 N/A Beginning of Ten Day Public Examination. 4/12/88 58 2/14/88 N/A Close of Public Examination A projection is purposely not being given for a 6/7/88 election in that the County will not allow consolidation with the Primary Election. Barbara A. Battaya days Prior To Election Date PRESIDENTIAL PRIMARY JUNE 7, 1988 Act i on 158 - 103 * January 1 - February 25 127 February 1 118 February 10 113 * February 15 113 - 88 February 15 - March 11 103 February 25 88 March 11 88 March 11 83 March 16 82 March 17 57 April 11 40 - 10 April 28 - May 28 29 May 9 29 - 7 May 9 - May 31 14 May 24 -0- June 7 + 21 June 28 * Legal day falls on Saturday, Sunday or Holiday First day to issue Petition in-Lieu of filing fees. EC 6555 First day to issue and file Declaration of Intent for Judicial and Legislative Offices. EC 25301, 25500 Deadline to file Declaration of Intent. EC 25301, 25500 Extended period - for any person other than incumbent to file Declaration of Intent. (Legislative Office only) Nomination Papers for June Primary..~ ~ ~ EC 6490 Deadline to file Petition in-Lieu of fi!i;~g fees. ' EC 6555 Deadline to file Nomination Papers. EC 6490 Last day for entity to request consolidation. EC 23302 Extended period - for any person other than incumbent file Nomination Papers. EC 6490.1, 25305, 25500 Random alphabet drawing by Secretary of State. EC 10217 Publish Notice of Election. EC 2554 Sample Ballots to be mailed. EC 10010 Close of registration. EC 17 Absentee Ballots available. EC 7301 Write-in Candidate (last day). EC 7301 Election Day County Clerk certifies official canvass of vote Days Prior To Election 89 - 75 MUNICIPAL ELECTION APRIL 12, 1988 Date 89 - 68 January 14 - February 4 63 February 9 Action Notice of Election to be publi§hed'. ~"~ .... ~" '"'"' .... ':'" EC 22830 Nomination period.' ~ 22836 Submit names of candidates to County Clerk (if no extension). Close of extended nomination period for non-incumbent to file if incumbent does not file. EC 22840.5 62 February 10 61 February 11 March '~ :! ':'~' "": :'' "' Random alphabet drawing by Secretary of State. EC 10217 Submit names of ~andidates to County Clerk if nomination extended. Submit PamPhlet to County Clerk for labeling. 40 - 10 March 3 - April 2 Sample Ballot pamphlet to be mailed. EC 10010 29 March 14 Close of registration. EC 17 29 - 7 March 14 - April 5 Absentee Ballots available. EC 1002 14 -0- + 13 March 29 April 12 Apri 1 25 Write-in candidate (last day) (notify County Clerk March 30) EC 7301 Election Day County Clerk certifies official canvass of vote. ORDINANCE NO. I027-88 AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO AT AN ELECTION TO BE HELD FOR THAT PURPOSE WHEREAS, the City Council of the City of South San Francisco has adopted by a two-thirds vote of all the members of the Council Resolution No. 131-87 entitled "A Resolution DetermininG That the Public Interest and Necessity Demand the Acquisition, Construction and Completion oz Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco"; WHEREAS, in order toprovide for the issuance by the City of its general obligation bonds to finance the improvements described in the Resolution, it is necessary for the Council topass an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at an election held for that purpose; and WHEREAS, this Council desires to submit such a ballot measure to the qualified voters of the City at a special municipal election to be held in the City on April 12, 1988. THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO ORDAINS AS FOLLOWS: Section 1. That a special municipal election is hereby called and ordered to be held in the City on April 12, 1988 at which election there shall be submitted to the qualified voters of the City the proposition of issuing general obligation bondspursuant to Section 43600 et seq. of the Govern- merit Code of the State of California (the "Act"), for the purpose of providing funds for the objects and purposes stated in the proposition set forth below. Section 2. That the proposition shall appear upon the ballot for the special municipal election in the following form: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obli- gation Bonds in the amount of five million dollars princ, ipal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. Section 3. The indebtedness to be incurred by the City shall be for the object and purpose of the acquisition of land for the expansion of Orange Memorial Park and the construction and/or completion of improvements thereon (collectively, the "Improvements"). The indebtedness may include the cost of legal and other fees and the cost of printing bonds and other costs and expenses, incidental to or connected with the issuance and sale of the general obligation bonds to be issued to finance the improvements (collectively, the "Bond Issuance Fees and Expenses"). Section 4. The estimated costs of the acquisition, construction and completion of the Improve- merits, including any Bond Issuance Fees and Expenses attributable thereto, is not to exceed $5,000,000. Section 5. The principal amount of general obligation bonds to be issued for the financing of the Improvements is not to exceed $5,000,000. Section 6. The rate of interest to be paid on the bonds for the Improvements shall not exceed twelve percent (12%) per annum (unless the maximum interest rate for general obligation bonds of cities shall hereafter be increased by the Legislature of the State of California, in which event the ~maximum fixed by the Legislature shall apply). Section 7. This City Council does hereby submit to the qualified voters of the City, at the special municipal election, this Ordinance and the proposition set forth in Section 2 hereof. The C ty proposes to acquire, construct and complete the Improvements and to issue and sell general obligation bonds of the City pursuant to the Act in one or more ser es in the maximum amounts and for the objects and purposes set forth above if two-thirds of all the qualified voters voting on the proposition set forth above vote in favor thereof. The bonds are to be general obligations of the City payable from and secured by taxes levied and collected in the manner prescribed by the laws of the State of California. All of the bonds are to be equally and ratably secured, without priority, by the taxing power of the City. Section 8. The polls for the election shall be opened at seven o'clock a.m. of the day of the election and shall remain open continuously from said time until eight o'clock p.m. of the same day, when the polls shall be closed, except as provided in Section 14301 of the Election Code of the State of California. Section 9. The measure submitted by this Ordinance shall be designated on the ballot by a letter printed on the left margin of the square containing the description of the measure, as provided in Section 10219 of the Elections Code of the State of California. Section 10. All persons qualified to vote at municipal elections in the City upon the date of the election herein provided for shall be qualified to vote upon the proposition submitted at the special election. Section 11. Ballots for the election shall be provided in the form and in the number provided by law. On the ballots, in addition to any other printed matter which may be required by law, two voting squares shall be set off to the right of the proposition submitted at the election, in the manner provided by law, one having the word "YES" printed before it, and the other having the word "NO" printed before it. Section 12. Each voter to vote for the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word "Yes" on the ballot to the right of the proposition; and each voter to vote against the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word"No" on the ballot to the right of the proposition. Section 13. This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the City, or once a week for two weeks in a newspaper published less than six days a week in the City. The City Clerk is hereby authorized and directed to make the publications andto transmit, for receipt no later than January 15, 19~, a certified copy of this Ordinance to the appropriate officials of the County of San Mateo responsible for preparing the ballots for the election. Section 14. This ordinance is adopted pursuant to Government Code 36937 of the State of California and being an ordinance calhng and ordering an election, shall take effect immediately upon its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 16th day of December, 19~7. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held on the 13th day of January, 1988. AYES: Councilmembers Mark N. Addiego, Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teglia, and Jack Drago NOES: None ABSENT: None ABSTAIN: None ATTEST/s/BARBARA A. BATTAYA, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 13th day of January, 1988. /s/JACK DRAGO, Mayor Published in Enterprise Journal, Wednesday, January 20, 27, 1988. (11887EJ) Office of the County C1¢ :-Recorder ~VARREN SLOCUM COUNTY CLERK-RECORDER COUNTY OF SAN MATEO HALL OF JUSTICE AND RECORDS.REDWOOD CITY.CALIFORNIA 94063.(415) 363.4711 40 TOWER ROAD, SAN MATEO, CA 94402 (415) BRANCH OFFICE · · 573.2081 ELECTION DIVISION MAUREEN GROVER CHIEF DEPUTY December~-~, 1987 Mrs. Barbara Battaya, City Clerk City of South San Francisco 400 Grand Av South San Francisco, CA 94080 Dear Mrs. B~L~ya: Enclosed please find a list of polling pl.aces to be used, in your City's Municipal Election to be,.he[d on Tuesday, April 12, 1988...please advise us at your earliest convenience whether or not you approve as the Agreements must be sent to the resPective polling place owners as soon as possible. Please call our office at 573-2081 and ask to speak to me regardi.ng your decision. Sincerely, CC:gm Enclosure Warren Slocum County Clerk-.Recorder Curtis Covington ~ Election Precinct Coord~l~ator CITY OF SOUTH SAN FRANCISCO GENERAL MUNICIPAL ELECTION APRIL 12, 1988 Reg as of 10/14/87 CO1 C02 C03 CO4 C05 C06 C07 CO8 C09 CIO Cll C12 C13 C14 C15 C16 176001 176002 176004 176053 176003 176041 176005 176006 176008 176015 176016 176013 176014 176010 176012 176007 176009 176018 176040 176017 176019 176039 176025 176026 176023 176036 176020 176021 176022 176044 176O37 176038 382 374 756' 355 355 710 389 353 438 444 461 91'~' 474 '413 458 441 461 433 42O 443 449 '482 -931 421 '264 ~61 '1723 356 377 '7'3'3 545 '437 367 36O 72'7' 348 458 350 399 Sunshine Gardens School - Rm 7 12OO Miller Av Mater Dolorosa Parish Hall 1044 Miller Av Mater Dolorosa Parish Hall 1044 Miller Av Hillside School MPR 1400 Hillside B1 Martin School - Rm 12 35 School St Parkway Jr. High School Library 825 Park Wy Spruce School Rm 2 501 Spruce Av So. San Francisco City Hall Foyer 400 Grand Av Penna Garage 313 Aspen Av Roger Williams School - Sch Rm Magnolia & Grand Av Los Cerritos School - School Rm 210 Orange Av Baden High School Auditorium 825 Southwood Dr Ponderosa School - MPR 295 Ponderosa Rd Seubert Garage 224 Northwood Dr Nelson Garage 420 Briarwood Dr Mazzotti Garage 246 Wicklow Dr C17 c18 C19 C20 C21 C22 C23 C24 C25 C26 C27 176043 176033 176035 176032 176052 176031 176042 176027 ]76028 176029 176030 176034 176047 176024 176046 176045 176O48 176011 176O51 176049 ~76050 187 344 449 793 422 338 422 406 449 '394 478 447 ~92'5' 421 457 452 ' '390- 438 "416 444 · '394 344 393 ·73'7 Trailer Court - #3 Washroom 17OO E1 Camino Real Alta Loma Jr. High School Library 116 Romney Av Alta Loma Jr. High School Library 116 Romney Av Buri Buri School Facutly Rm 120 E1 Camp Dr Municipal Services Bldg - Open Rm 33 Arroyo Dr Himm Garage 25 Capay Circle St. Augustine Church - Main Hall 3700 Callan B1 So San Francisco Fire Station #4 2350 Galway P1 Westborough Jr. High School -- Faculty Dining Rm 2570 Westborough B1 Foxridge School Gym 2525 Wexford Av Foxridge School Gym 2525 Wexford Av .%\, MUNICIPAL ELECTION APRIL 12, 1988 Days Prior To Election 89 - 75 89 - 68 67 63 62 61 41 40 - 10 29 29 - 7 14 -0- + 13 Date January 14 - January 28 January 14 - February 4 February 5 February 9 February 10 February 11 March 2 March 3 - April 2 March 14 March 14 - April 5 March 29 April 12 April 25 Action Notice of Election to be published. EC 22830 Nomination period. EC 22836 Submit names of candidates to County Clerk (if no extension). Close of extended nomination period for non-incumbent to file if incumbent does not file. EC 22840.5 Random alphabet drawing by Secretary of State. EC 10217 Submit names of Jandidates to County Clerk if nomination extended. Submit PamPhlet to County Clerk for labeling. Sample Ballot pamphlet to be mailed. EC 10O10 Close of registration. EC 17 Absentee Ballots available. EC 1002 Write-in candidate (last day) (notify County Clerk March 30) EC 7301 Election Day County Clerk certifies official canvass of vote. ELECTION CALENDAR MUNICIPAL ELECTIONS - NOVEMBER 3, 1987 (consolidated pursuant to EC 23300 et seq.) Days Prior to Election 120 - 90 (suggested) 113 - 88 Date * July,~- Aug. 5 July 13 - Aug. 7 97 July 31 (89 - 75) (Aug. 6 - Aug. 20) 88 August 7 84 (suggested) August 83 August 12 82 August 13 81 August 14 74 August 21 (suggested) 63 September 1 (suggested) Action Publish Notice of Election one time (time of Election, offices to be filled, etc.) and Notice of Measures to be voted on (if any). Gov't. Code 6061, EC 22830, 22835, 23511, 23520, Education Code 5326 & 5363.~-~o~ Nomination Period. Gov't. Code 36503.7, EC 23302.5. Nomination papers signed by minimum 20, maximum 30. EC 22836 Deadline to file semi-annual Campaign Statement covering period 1-1-87 through 6-30-87 or period of 5-17-87 through 6-30-87. Gov't. Code 84205 (Publish Notice of Election. EC 22830 & 228351 Last day to request County Clerk to provide services. EC 22003 Deadline to consolidate measure on ballot. EC 23302 Publish Notice to file Arguments for or Against Measure (if any). EC 3784 Close of extended Nomination Period for non-incumbent to file if incumbent does not file. ED Code 5012.5, EC 2351.5 & 22840.5 Random alphabet drawing by Secretary of State. EC 10217 Deadline to file with County Clerk the names of candidates to be on ballot. EC 23302 Deadline to file Primary Arguments (if any). Deadline to file Rebuttal Arguments. * It is suggested that a publication of Notice of Election be made prior to opening of nomination period. Municipal code calls for publication 89 - 75 days. Election Calendar - Municipal Elections - November 3, 1987 (continued) Days Prior To Election Date Action 63 September i 61 September 3 54 September 10 40 29 2O 14 12 0 September ~ '~ue .Sept, 21) October 5 October 14 October 20 October 22 October 27 November 3 November 24 If no one or only one person has been nominated for an office, City Clerk makes publication of such facts and City Council may appoint nominee(s). EC 22843.5 Publish list of nominees twice, 5 days apart. EC 22833 Last day for public examination of proposed measure(s) and argument(s). EC 5025 Deadline to file first pre-election Campaign Statement covering period 7/1/87 through 9/19/87. Gov't. Code 84205 Voter registration closes. EC 301 Absentee voter balloting opens. EC 1002 Deadline to publish list of Election Officers and Polling Places. EC 22834 Deadline to file as Write-in Candidate. EC 7301 Not applicable if Council makes appointment. EC 22843.5 Deadline to file second pre-election Campaign Statement covering period 9-20-87 through 10-17-87. Regular period for Absentee voting closes. EC 1002 Election Day Deadline for County Clerk to certify official canvass of the vote. 6/87 Office of the County Cler~-Recorder WARREN SLOCUM F{ E C ~ l l,/F 0 COUNTY CLERK-RECORDER '88 J~ 27 A] 1:2 5 COUNTY OF SAN 1VIA :O:. ELECTION DIVISION 94063 · (~ '~6~3 ~4 ~" ..1% MAUREEN GROVER HALL OF JUSTICE AN, D RECORDS.REDWOOD CITY*CALIFORNIA . ''~ ..... BRANCH OFFICE 40 TOWER ROAD, SAN MATEO, CA 94402 ~. (~5~)~ / 'CH EF DEPUTY January 25, 1988 Honorable Barbara Battaya, City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Dear N~-,.~?B~t~-ay~: ........ The City of South San Francisco is one of five cities scheduled to hold its Election on April 12, 1988 and is. therefore in need of voting machine transportation to the polling place. San Mateo County has recently used the services of Delancey Street Movers of San Francisco and has found their services to be reliable and their rates reasonable. I've forwarded your name to Mr. Keith Ottolini of Delancey Street Movers and perhaps an agreement could be reached among all five cities that would keep the cost of transportation at a minimum. If you need to contact Mr. Ottolini his number and address are: Delancey Street Movers 2563 Divisadero San Francisco, CA 94115 Telephone: 957-9800 If I can be of any help, please call me at (415) 573-2081. Sincerely, Warren Slocum County Clerk-Recorder MG:sc Maureen Grover, Chief Deputy Registration-Election Division cc: Mr. Keith Ottolini MUNICIPAL ELECTIONS TUESDAY, APRIL 12, 1988 1.) Mrs. Frances Liston, City Clerk Town of Colma Route 1, Box 235 Colma, CA 94014 Telephone: (415) 997-8323 2.) Mrs. Eleanor Giorgi, City Clerk Town of Hillsborough 1600 Floribunda Avenue Hillsborough, CA 94010 Telephone: (415) 343-2795 3.) Honorable Barbara Battaya, City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Telephone: (415) 877-8518 4.) Mr. Russell V. Averhart, Deputy City Clerk-Telephone: City of East Palo Alto 2415 University Avenue East Palo Alto, CA 94303 (415) 853-3100 5.) Mrs. Jacqueline Hildebrand, City Clerk City of Redwood City 1017 Middlefield Road Redwood City, CA 94064 Telephone: (415) 369-6251 DATE: TO: SUllJECT: FR()NI: ~TY OF SOUTH SAN FRANCISC¢' INTER-OFFICE MEMORANDUM March 2, 1988 Supt. of Facilities Maintenance Rich Bordi Presidential Primary Election June 7, 1988 City Clerk I am attaching the two polling place agreements for the June 7, 1988 Primary Election so you will be informed of what is needed in the way of tables and chairs. Barbara A. Battaya SS/205/9/86 COUNTY OF SAN MATEO OFFICE OF THE COUNTY CLERK-RECORDE~EC~!V~D 40 TOWER ROAD SAN MATEO, CALIFORNIA 94402 '~8 ~ -2 A9~170-2081 POLLING PLACE AGREEMENT OFFICE CF CITY CLERK PRESIDENTIAL PRIMARY ELECTION SI. SAN FRANCISCO TUESDAY, JU~E 7, 1988 CITY OF SSF ATT: 8 BATTAYA qOO GRANO AV . SO SAN FRAN ,.CA 9~O80 S S F CITY HALL FOYER ~00 GRAND AV-ENT MILLER 170012 I agree to furnish the polling place specified above for the Presidential Primary Election to be held on Tuesday, June 7, 1988. If you supply the polling place but cannot furnish chairs and tables (items 3 & 4) please so indicate. It is important that we know beforehand so that proper delivery can be planned. Please Answer YES oF NO 1. Is a grounded 110 volt electrical outlet available for Voting Machines? ..... 2 Is proper light available? · X (4) ' 3. I w~ll furnish four chairs for the Election Officers .................... NOTE: DATED: I will furnish one (1) strong table {approximately 3' X 5') ............... ~- X Is phone available, if needed? .............................................. ~ .. IT IS IMPORTANT THAT WE HAVE THIS NUMBERi- POLLING PLACE PHONE NO. IS ....... ~q~-~! Is polling place accessible to handicapped'persons? ......................... Entrance maybe gained for d~liveryof voting machines by contacting: Are there special instructions for Precinct Board entry on Election Day? (Board members are required to report at 6:15 A.M.) Due to number of deliveries and limited time involved, please accept delivery of machines as scheduled. ~/-r'~ When completed please retain DUPLICATE COPY of Agreement and return the ORIGINAL COPY to our office in enclosed return envelope. PLEASE RETURN AGREEMENT WITHIN tO-DAYS AS TIME IS OF THE ESSENCE· TELEPHONE NO.: NOTE: 2/88 COUNTY OF SAN MATEO _ OFFICE OF THE COUNTY CLERK-RECORD~-~'~V~'F] 40 TOWER ROAD SAN MATEO, CALIFORNIA 94402~ ~ -2 A9:15)73-2081 POLLING PLACE AGREEMENT ' OFFICE ~ " CITY CLERK PRESIDENTIAL PRIMARY ELECTIOSl. SAN FRANCISCO TUESDAY, JUNE 7, 1988 CITY CIF SSF ATT: B BATTAYA qO0 GRAND AV St] SAN FRAM CA 9~080 S S F CITY HALL FOYER LNCH RM 400 GRAND AV-ENT MILLER 176010 I agree to furnish the polling place specified above for the Presidential Primary Election to be held on Tuesday, June 7, 1988. If you supply the polling place but cannot furnish chairs and tables (items 3 & 4) please so indicate. It is important that we know beforehand so that proper delivery can be planned. Please Answer YES oK NO 1. Is a grounded 110 volt electrical outlet available for Voting Machines? ..... 2 Is proper light available? - (4) ' 3. I will furnish four chairs for the Election Officers .................... % 4. I will furnish one (1) strong table (approximately 3' X 5') ............... ,. ~- 5. Is phone available, if needed? .............................................. -/~ IT IS IMPORTANT THAT WE HAVE THIS NUMBER.- POLLING PLACE PHONE NO. IS ....... J~-~.5-/~ 6 Is polling place accessible to handicapped'persons? 7. Entrance may be gained for d~livery of voting machines by contacting: NOTE: DATED: TELEPHONE NO.: ~''7'7- c~ ~---i ~ NOTE: Are there special instructions for Precinct Board entry on Election Day? (Board members are required to report at 6:15 A.M.) ~,Y ~ Due to number of deliveries and limited time involved, please accept delivery of machines as scheduled, d__/Tq ~L~'~ ADDRESS: /7zd ~ ~~ ~ CITY: ,~, ~ ~ ~hen completed please retain DUPLICATE COPY of Agreement and return the ORIGINAL COPY to our office in enclosed return envelope. PLEASE RETURN AGREEMENT ~ITHIN tO'DAYS AS TIME ]S OF THE ESSENCE. ?IRR Office of the County Clm..-Recorder RFP, F!VFD WARREN SLOCUM COUNTY CLERK-RECORDER '~8 ~ -2 A9 :] ~ COUNTY OF SAN MA EO HALL OF JUST CE AND RECORDS REDWOOD CITY CALIFORNIA94063~~'~1 BRANCH OFFICE · ELECTION DIVISION MAUREEN GROVER 40 TOWER ROAD, SAN MATEO, CA 94402 $t. S(~)F~,'~:;~lSCO CH,EF DEPUTY PRESIDENTIAL PRIMARY ELECTION TUESDAY, JUNE 7, 1988 TO THE POLLING PLACE OWNER ADDRESSED: We are at this time in the process of arranging for polling places needed for the forthcoming Election to be held on Tuesday, June 7, 1988. We hope that you will continue to provide polling place facilities as in the past. Polling places normally should be at ground level and easily accessible to facilitate delivery and installation of voting machines. Electrical outlets are necessary for the operating of the voting machines. Should any questions arise as to polling place requirements, please contact our Registration-Election Office. If you are agreeable to providing a polling place for the June 7th Election, please complete and return the Original copy of the enclosed Agreement, retaining the Duplicate copy for your records. Please indicate on the Agreement form who to contact or where the key will be available to gain entry with voting machines or equipment which will be delivered and installed a few days before the election. If for some reason you are unable to provide the polling place as requested, please indicate on the Original copy of the agreement and return it to our Registration-Election Office. Your cooperation is greatly appreciated. Sincerely, Warren Slocum County Clerk-Recorder WS:sc Enclosures (Public Bldgs.) 2/88 Office of the County Clez_.-Recorder WARREN SLOCUM COUNTY CLERK-RECORDER COUNTYOF SA.N M TEO OFFICE ' 40 TOWER ROAD SAN MATEO CA 94~0~' BRANCH , , .~, ELECTION DIVISION MAUREEN GROVER CHIEF DEPUTY PRESIDENTIAL PRIMARY ELECTION TUESDAY, JUNE 7, 1988 TO THE POLLING PLACE OWNER ADDRESSED: We are at this time in the process of arranging for polling places needed for the forthcoming Election to be held on Tuesday, June 7, 1988. We hope that you will continue to provide polling place facilities as in the past. Polling places normally should be at ground level and easily accessible to facilitate delivery and installation of voting machines. Electrical outlets are necessary for the operating of the voting machines. Should any questions arise as to polling place requirements, please contact our Registration-Election Office. If you are agreeable to providing a polling place for the June 7th Election, please complete and return the Original copy of the enclosed Agreement, retaining the Duplicate copy for your records. Please indicate on the Agreement form who to contact or where the key will be available to gain entry with voting machines or equipment which will be delivered and installed a few days before the election. If for some reason you are unable to provide the polling place as requested, please indicate on the Original copy of the agreement and return it to our Registration-Election Office. Your cooperation is greatly appreciated. Sincerely, Warren Slocum County Clerk-Recorder WS:sc Enclosures (Public Bldgs.) 2/88 Delancey Street Foundation, Inc. Moving School 2563 Divisadero St. San Francisco, Ca. 94115 PUC LIC.~ T105,653 (415) 957-9g00 22 February 1988 Honorable Barbara Battaya City Clerk, City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Dear Ms. Battaya , The Delancey following rate voting machines $28.00 If you have any questions or require any further information, please give me a call. Siqcerel y, Keith Ottolini Manager Established 1973 Terminal gOO,Second St. S.F.,Ca. Member of Calif. Moving&Storage Association January 13, 1988 TO: SUBJECT' ACTION: 'Honorable City Council 2nd Reading - Orange Park Expansion Project 1. Waiving further reading in its entirety 2. Adopt the Ordinance ~ io~--~-~% 3. Adopt the Resolution ~L~~' ~ . '~- RECOMMENDATION: At the City Council meeting of December 16, 1987, CitMC'ouncil adopted ResolutiOns and introduced an Ordinance approving an April 12, 1988 date for a $5 million bond issue to expand Orange Memorial Park to include acquisition and development ,of approximately 11.5 acres of property identified as "Mazzanti and California Water Service" properties. l'f Council wishes to pursue this project they must: l) adopt the Ordinance ordering the submission of'a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange .Memorial Park Improvements to the qualified voters of the C-~ty of South San Francisco at an election to be held for this purpose, and 2) adopt the Resolution requesting services of the San Mateo County Clerk and authorize the filing of an impartial analysis, Written agreement and statements thereof for the City Proposition. Mark Lewis City Manager by: Alex Tsitovich Recreat.ion Services Manager AT/wdc RESOLUTION NO. 8-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON APRIL 12, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) WHEREAS, pursuant to Elections Code Section 2650 et seq., the City Council of the City of South San Francisco proposes to call and order a Special Municipal Election in the City for the purpose of submitting to the voters the proposition of issuing 9eneral obligation bonds; and WHEREAS, pursuant to Elections Code Section 2500, the special municipal election date of April 12, 1988 is the nearest established regular election date from the date of this resolution, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco, 1.~' ~qat it calls and orders a Special Municipal Election in the City of South San Francisco on Tuesday, April 12, 1988 for the purpose of submitting to the qualified voters of the City the following proposition: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? 2. That the Special Election shall be held and in all respects conducted in accordance with the provisions of the law, and all persons qualified to vote at regular municipal elections shall be qualified to vote on the proposition submitted at the special municipal election. 3. That the City Clerk is hereby directed to certify to the adoption of this resolution and to transmit a certified copy of this resolution to the County Clerk of San Mateo County and to take or cause to be taken all further actions required by law in connection with the preparation for and conduct of the special election. 4. This resolution corrects and supersedes Resolution No. 130-87. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a reaular meeting held on the 13th day of January , 19 88 by the following vote: AYES: Councilmembers Mark N. Addiego, Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teglia, and Jack Drago NOES: None ABSTAIN: None ABSENT: None ATTEST: /s/ Barbara A. Battaya ulty u~erK -2- RESOLUTION NO. 9-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION REQUESTING THE SERVICES OF THE SAN MATEO COUNTY CLERK AND AUTHORIZING THE FILING OF AN IMPARTIAL ANALYSIS, WRITTEN ARGUMENT AND STATEMENTS THEREON FOR THE CITY PROPOSITION WHEREAS, th~.. City Council of the City of South San Francisco has adopted Ordinance No. ].027-~titled "An Ordinance Ordering the Submission of a Proposition of Incurring Bonded Debt for the Purpose of the Acquisition, Construction and Completion of Orange Memorial Park Improvements to the Qualified Voters of the City of South San Francisco at an Election to be Held for that Purpose", ordering the submission of a proposition to the qualified voters of the City of South San Francisco (the "Ordinance"): WHEREAS, Section 22003 of the Elections Code of the State of California authorizes the Council to request the Board of Supervisors to permit the County Clerk to render specified services to the City relating to the conduct of an election; WHEREAS, Section 5011 and Section 5013 of said Code authorize the filing of an impartial analysis and of written arguments for or against any ballot proposition; and WHEREAS, Section 5301 of said Code requires a statement to be prepared and provided to voters regarding certain effects of the proposition; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO as follows: 1. The San Mateo County Clerk is hereby requested to provide such services as may be necessary to properly and lawfully hold and conduct a special municipal election in the City of South San Francisco on April 12, 1988 pursuant to the Ordinance, particularly those services specified in Exhibit A. 2. For its signature this Council hereby directs the City Manager and his staff to prepare and file a written argument, and a rebuttal, if required, and hereby authorizes any and all Mayor Jack Drago Vice Mayor - Roberta Cerri Teglia Councilmember Mark N. Addiego Councilmember Richard A. Haffey Councilmember Gus Nicolopulos -1- to sign a written argument andr'or rebuttal for said City Proposition in accordance with the Elections Code of the State of California, and to change such argument and'or rebuttal until and including the date fixed by the City Clerk, after which no argument and'or rebuttal for or against the Proposition may be submitted to her. The written argument for the proposition shall not exceed 300 words in length and the rebuttal shall not exceed 250 words in length, and the argument and rebuttal shall otherwise conform to and comply with all applicable provisions of the Elections Code of the State of California. The deadline date for the submittal of arguments, in favor or in opposition, shall be February 4, 1988. 3. The City Clerk is hereby directed to submit to the City Attorney a certified copy of the Ordinance. The City Attorney is hereby authorized and directed to prepare an impartial analysis of the proposition specified i'n the Ordinance showing the effect of the measure on the existing law and the operation of the measure, said analysis to be submitted by the City Attorney to the City Clerk for printing before the arguments for and against the measure. The analysis shall not exceed 500 words in length and shall otherwise comply in all respects with the applicable provisions of the Elections Code of the State of California. The deadline date for the submittal of the analysis shall be January 25, 1988. 4. The City Clerk and other appropriate City staff are hereby authorized and directed to work with the appropriate officials of the County of San Mateo to prepare and distribute, for the proposition specified in the Ordinance, the statement required by and specified in Section 5301 of the Elections Code of the State of California. The statement shall conform in all respects and be distributed to the voters as required by the applicable provisions of the Elections Code of the State of California. 5. The City Clerk is hereby directed to file with the Board of Supervisors of the County of San Mateo a certified copy of this resolution and of the Ordinance on or before January 15, 1988. 6. This resolution shall be effective upon its adoption. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco, at a regular meeting held on the 13th day of January, 1988, by the following vote: AYES: NOES: Councilmembers Mark N.'Addiego, Richard A. Roberta Cerri Teglia, and Jack Drago None Haffey, Gus Nicolopulos, ABSENT: None ABSTAIN: None "'*'ATTEST /S/ Barbara A. Battaya City Clerk -2- F .... IBIT A TO RESOLUTION NO. 9-88 SERVICE AGREEMENT SPECIAL MUNICIPAL ELECTION OF APRIL 12, 1988 CITY OF SOUTH SAN FRANCISCO Hereinafter set forth below are the services that may be rendered by the County Clerk incident to preparation for and conduct of the special election to be held April 12, 1988 by the City of South San Francisco. A. SERVICES FURNISHED BY COUNTY CLERK (1) Consolidate Precincts: Set consolidated precincts and supply list for legal publication by City. City to advise as to number of county pre- cincts to be consolidated (maximum registration per consolidation) and number of voting machines to be used per precinct. (2) Precinct Indexes: Furnish precinct indexes, by consolidated precinct, to the Affidavits of Registration of eligible voters (3 copies for pre- cinct supplies, I copy for City and I copy for Election Office files). (3) Polling Place Notices/Labels: Prepare and address for mailing to eli- gible voters. Includes stock. Inserting Election Matter to be mailed to eligible registered voters, or affix labels, if applicable. Delivery to Post Office for mailing. (Postage to be provided by City Clerk.) (4) (5) Select Polling Places: Including performance of whatever field work may be necessary to complete such selection, prepare, process and mailing of polling place agreement forms. List to be supplied to City Clerk for appointment by City Governing Body not less than 30 days prior to the election, and for legal publication. Select Election Officers: (1 Inspector, 3 Judges each polling place) - including substitute election officers. Prepare forms, mail applica- tions, process applications upon return, prepare election officer appointment list, prepare and mail appointments to election officers. City Clerk to be supplied list for appointment by City Governing Body not less than 30 days prior to the election, and for legal publication. (6) Precinct Supplies: Optional Items Provided - Flags, special letter to inspector and absentee information. Services required to prepare pre- cinc~ packets with additional items. B. SPECIFIED ELECTION ACTS TO BE PERFORHED BY CITY CLERK By resolution, request the Board of Supervisors (through the County ClerK) to permit the County Clerk to render specified election services to the City relating to the conduct of the election. Signed Service Agreemenc should accompany Resolution. Deadline to request service of County Clerk is 88 days prior to the (2) (3) election or Ja,._~ry lb, 1988. As a measure is be voted on, exact wording of measure must also be filed by the 88th day prior to elec- tion. Legal Publications: All legal publications are the responsibility of the City Clerk including but not limited to: Notice of Election, and Notice to File Arguments For or Against. Note: County Clerk will provide list of applicable election officers and polling places to the City Clerk approximately 29 days prior to election. City Clerk is to prepare and deliver to the County Clerk the ballot pamphlet containing Ballot Measure, Analysis of Measure, Arguments For or Against, and Rebuttals thereto. Due date of this material at the Office of the County Clerk, 40 Tower Road, San Mateo is March 3, 1988. SPECIFIED ELECTION ACTIONS TO BE PERFORMED BY CITY CLERK AND EXCLUDED FROM SCHEOULE OF COUNTY CLERK SERVICES: (1) Argument filings. (2) Legal publications: Responsibility of City Clerk and payment to be made by City. (3) Official Designation of Consolidated Precincts, Polling Places and Appointment of Election Officers by City Council. All Election Officer and Polling Place Fees to be paid by the City. (This would include any possible custodian fees where schools are used as polling places.) (4) Absentee Voting: Processing of absent voter applications, verifica- tion of signature, mailing of absent voter ballots and voting in Clerk's office to be handled by City Clerk. Check Absentee application signatures. (6) Absentee Canvass is responsibility of and will be made by City Clerk. (7) Semi-Official Canvass is responsibility of and will be made by City Clerk. (8) Official Canvass to be made by the City Governing Body. (9) City will be responsible for compliance with statutory requirements as set forth as the responsibility of the City Clerk in the Political Reform Act of 1974. (lO) The conduct of the election remains the responsibility of the City Clerk. Performance of Services hereinabove specified in Section A are at all times considered to be under direction of the City Clerk and the County shall assume no special authority or responsibility in the con- ~uct of the election designated to the City under provisions of the Elections Cooe, the Federal Voting Rights Act or such other law governing the conduct of such election. -2- TERMS AND CONSIDERATION This schedule shall be in effect for the performance of all specified services incident to the preparation and holding of the City of South San Francisco Special Municipal Election to be held April 12, 1988, except services listed as required by City Clerk. In the event the County is unable to perform services required under this Agreement, as a result of employer/employee relation conditions, vendor con- ditions or other conditions beyonu the control of the County Clerk, the County will be relieved of all obligations under this Agreement. Consideration: In consideration of :he performance of t~e afmrementioned ser- vices and supplies provided by the County Clerk, the City of South San Francisco shall pay to the County Clerk a sum equal to the actual cost of such services and supplies. /s/ Barbara A. Battaya Signature City Clerk Title January 14, 1988 Da~e~ -3- ORDINANCE NO. 1027-88 AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO AT AN ELECTION TO BE HELD FOR THAT PURPOSE WHEREAS, the City Council of the City of South San Francisco has adopted by a two-thirds vote of all the members of the Council Resolution No. ].3].-87 entitled "A Resolution Determining That the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco"; WHEREAS, in order to provide for the issuance by the City of its general obligation bonds to finance the improvements described in the Resolution, it is necessary for the Council to pass an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at an election held for that purpose; and WHEREAS, this Council desires to submit such a ballot measure to the qualified voters of the City at a special municipal election to be held in the City on April 12, 1988. THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO ORDAINS AS FOLLOWS: Section 1. That a special municipal election is hereby called and ordered to be held in the City on April 12, 1988 at which election there shall be submitted to the qualified voters of the City the proposition of issuing general obligation bonds pursuant to Section 43600 et seq. of the Government Code of the State of California (the "Act"), for the purpose of providing funds for the objects and purposes stated in the proposition set forth below. Section 2. That the proposition shall appear upon the ballot for the special municipal election in the following form: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres -1- for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. Section 3. The indebtedness to be incurred by the City shall be for the object and purpose of the acquisition of land for the expansion of Orange Memorial Park and the construction and or completion of improvements thereon (collectively, the "Improvements"). The indebtedness may include the cost of legal and other fees and the cost of printing bonds and other costs and expenses, incidental to or connected with the issuance and sale of the general obligation bonds to be issued to finance the improvements (collectively, the "Bond Issuance Fees and Expenses"). Section 4. The estimated costs of the acquisition, construction and completion of the Improvements. including any Bond Issuance Fees and Expenses attributable thereto. is not to exceed $5,000,000. Section 5. The principal amount of general obligation bonds to be issued for the financing of the Improvements is not to exceed $5.000.000. Section 6. The rate of interest to be paid on the bonds for the Improvements shall not exceed twelve percent (12%) per annum (unless the maximum interest rate for general obligation bonds of cities shall hereatter be increased by the Legislature of the State of California, in which event the maximum fixed by the Legislature shall apply). Section 7. This City Council does hereby submit to the qualified voters of the City, at the special municipal election, this Ordinance and the proposition set forth in Section 2 hereof. The City proposes to acquire, construct and complete the Improvements and to issue and sell general obligation bonds of the City pursuant to the Act in one or more series in the maximum amounts and for the objects and purposes set forth above if two- thirds of all the qualified voters voting on the proposition set forth above vote in favor thereof. The bonds are to be general obligations of the City payable from and secured by taxes levied and collected in the manner prescribed by the laws of the State of California. All of the bonds are to be equally and ratably secured, without priority, by the taxing power of the City. Section 8. The polls for the election shall be opened at seven o'clock a.m. of the day of the election and shall remain open continuously from said time until eight o'clock p.m. of the same day, when the polls shall be closed, except as provided in Section 14301 of the Election Code of the State of California. Section 9. The measure submitted by this Ordinance shall be designated on the ballot by a letter printed on the left margin of the square containing the description of the measure, as provided in Section 10219 of the Elections Code of the State of California. Section 10. All persons qualified to vote at municipal elections in the City upon the date of the election herein provided for shall be qualified to vote upon the proposition submitted at the special election. Section 11. Ballots for the election shall be provided in the form and in the number provided by law. On the ballots, in addition to any other printed matter which may be required by law, two voting squares shall be set off to the right of the proposition submitted -2- at the election, in the manner provided by law, one having the word "YES" printed before it, and the other having the word "NO" printed before it. Section 12. Each voter to vote for the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word "Yes" on the ballot to the right of the proposition; and each voter to vote against the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word "No" on the ballot to the right of the proposition. Section 13. This Ordinance shall be published once a day for at least seven days in a newspaper published .at least six days a week in the City. or once a week for two weeks in a newspaper published less than six days a week in the City, The City Clerk is herel:)y authorized and directed to make the publications and to transmit, for receipt no later than January 15. 1988, a certified copy of this Ordinance to the appropriate officials of the County of San Mateo responsible for preparing the ballots for the election. Section 14. This ordinance is adopted pursuant to Government Code 36937 of the State of California and being an ordinance calling and ordering an election, shall take effect immediately upon its adoption. -3- Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 18th day of December, 1987. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held on the 13th day of January, 1988. AYES: NOES: ABSENT: ABSTAIN: Councilmembers Mark N. Addiego, Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teglia, and Jack Drago None None None ~"'~' ~ ATTEST /s/ Barbara A. Battaya City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 13thday of January., 198.___8 /s/ Jack Drago Mayor -4- CITY CLERK January 14, 1988 RECEIVED OARO OF JAN 15 1988 PERSONALLY HAND DELIVERED ON 1/15/88 Clerk of the Board of Supervisors San Mateo County Board of Supervisors Hall of Justice and Records Redwood City, CA 94063 Re: Soutn San Francisco Special Municipal Election April 12, 1988 for General Obligation Bonds Dear Ms. Brecht: Please be advised that the South San Francisco City Council at their regular meeting of January 13, 1988 adopted Resolution No. 8-88 (that superseded Resolution No. 130-87 to correct the Proposition wording which did not conform to the Proposition wording of Ordinance No. 1027-88), Resolution No. 9-88 and Ordinance 1027-88. I am enclosing certified copies of all of the following documents: Resolution No. 8-88, A Resolution calling and ordering a Special Municipal Election to be held on April 12, 1988 for the purpose of submitting to the voters the Proposition of issuing General Obligation Bonds (Orange Memorial Park) Resolution No. 9-88, A Resolution requesting the services of the San Mtaeo County Clerk and authorizing the filing of an impartial analysis, written argument and statements thereon for the City Proposition Ordinance No. 1027-88, An Ordinance ordering the submission of a Proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park Improvements to the qualified voters of the City of South San Francisco at an election to be held for that purpose If I can be of further assistance please call. Very truly yours, Barbara A. Battaya Enclosures CC: Election Dept. Service Printing Co. 400 GIlt, ID AVENUE - P.O. BOX 711 - 94083 O~F~CE OF THE CITY CLERK (415) 877-8.518 danuary 14, 1988 PERSONALLY HAND DELIVERED ON 1/15/88 Clerk of the Board of Supervisors San Mateo County Board of Supervisors Hall of Justice and Records Redwood City, CA 94063 Re: South San Francisco Special Municipal Election April 12, 1988 for General Obligation Bonds Dear Ms. Brecht: Please be advised that the South San Francisco City Council at their regular meeting of January 13, 1988 adopted Resolution No. 8-88 (that superseded Resolution No. 130-87 to correct the Proposition wording which did not conform to the Proposition wording of Ordinance No. 1027-88), Resolution No. 9-88 and Ordinance 1027-88. I am enclosing certified copies of all of the following documents: Resolution No. 8-88, A Resolution calling and ordering a Special Municipal Election to be held on April 12, 1988 for the purpose of submitting to the voters the Proposition of issuing General Obligation Bonds (Orange Memorial Park) Resolution No. 9-88, A Resolution requesting the services of the San Mtaeo County Clerk and authorizing the filing of an impartial analysis, written argument and statements thereon for the City Proposition Ordinance No. 1027-88, An Ordinance ordering the submission of a Proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park Improvements to the qualified voters of the City of South San Francisco at an election to be held for that purpose If I can be of further assistance please call. Very truly yours, Barbara A. Battaya Enclosures CC: Election Dept, Service Printing Co. 400 GRAND AVENUE - P.O. BOX 711 - 94083 OFF~CE OF THE C~TY CLERK (415) S77-8518 RECeiVeD 19 9:25 OFf'i(;!: CITY CLERK SAN FRANCISCO January 14, 1988 Ms. Edna Donaldson San Mateo Times P. O. Box 5400 San Mateo, CA 94402 Subject: Legal Publication for the Enterprise Journal - ORDINANCE NO. 1027-88 - AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO AT AN ELECTION TO BE HELD FOR THAT PURPOSE Dear Ms. Donaldson: Enclosed for publication in the South San Francisco Enterprise Journal is the above mentioned Ordinance No. 1027-88. Please Publish on: Wednesday, January 20, 1988/ Wednesday, January 27, 1988/' Please acknowledge receipt of this advertisement by signing below and send a Proof of Publication to this Office. Very truly yours, Barbara A. Battaya City Clerk Enclosures " ' "~ ~ The undersigned acknowledges receipt of the above referenced n~.~l'~e"'.''~'':~'~'l''''('~-~- ..... outh San Francisco Enterprise Journal 400 GRAND AVENUE - P.O. BOX 711 - 94083 ORDINANCE NO. 1027 ~ AN ORDINANCE ORDERING THE SUBMISSIOn, oF A PROPOSITION OF INCURRING BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO AT AN ELECTION TO BE HELD FOR THAT PURPOSE WHEREAS the City Council of the City of South San Francisco has adopted by a two-thirds vote of all the members of the Council Resolution No. 131-87 entitled "A Resolution Determining That the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco"; WHEREAS in order toprovide for the issuance by thc City of its general obligation bonds to finance the improvements described n the Resolution, it is necessary for the Council to pass an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at an election held for that purpose; and WllEREAS, this Council desires to submit such a ballot measure to the qualified voters of the City at a special municipal election to be held in the City on April 12, 19~8. TIlE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO ORDAINS AS FOLLOWS: Section L That a special municipal election is hereby called and ordered to be held in the City on April 12, 1988 at which election there shall be submitted to the qualified voters of the City the proposition of issuing general obligatiOn bonds pursuant to Section 43600 et seq. of the Govern- merit Code of the State of California (the "Act"), for the purpose of providing funds for the objects and purposes stated in the proposition set forth below. Section 2. That the proposition shall appear upon the ballot for the special municipal election in the following form: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obli- gation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. Section 3. The indebtedness to be incurred by the City shall be for the object and purpose of the acquisition of land for the expansion of Orange Memorial Park and the construction and/or completion of improvements thereon (collectively, the "Improvements"). The indebtedness may include the cost of legal and other fees and the cost of printing bonds and other costs and expenses, incidental to or connected with the issuance and sale of the general obligation bonds to be issued to finance the improvements (collectively, the "Bond Issuance Fees and Expenses"). Section 4. The estimated costs of the acquisition, construction and completion of the Improve- merits, including any Bond Issuance Fees and Expenses attributable thereto, is not to exceed $5,000,000. Section 5. The principal amount of general obligation bonds to be issued for the financing of the Improvements is not to exceed $5,000,000. Section 6. The rate of interest to be paid on the bonds for the Improvements shall not exceed twelve percent (12%) per annum (unless the maximum interest rate for general obligation bonds of cities shall hereafter be increased by the Legislature of the State of California, in which event the maximum fixed by the Legislature shall apply). Section 7. This City Council does hereby submit to the qualified voters of the City, at the special municipal election, this Ordinance and the proposition set forth in Section 2 hereof. The City proposes to acquire, construct and complete the Improvements and to issue and sell general obligation bonds of the City pursuant to the Act in one or more series in the maximum amounts and for the objects and purposes set forth above if two-thirds of all the qualified voters voting on the proposition set forth above vote in favor thereof. The bonds are tobe general obligations of the City payable from and secured by taxes levied and collected in the manner prescribed by the laws of the State of California. All of the bonds are to be equally and ratably secured, without priority, by the taxing power of the City. Section 0. The polls for the election shall be opened at seven o'clock a.m. of the day of the election and shall remain open continuously from said time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14301 of the Election Code of the State ofCaliforn a. Section 9. The measure submitted by this Ordinance shall be designated on the ballot by a letter printed on the left margin of the square containing the description of the measure, as provided in Section 10219 of the Elections Code of the State of California. Section 10. All persons qualified to vote at municipal elections in the City upon the date of the election herein provided for shall be qualified to vote upon the proposition submitted at the special election. Section 11. Ballots for the election shall be provided in the form and in the number provided by law. On the ballots, in addition to any other printed matter which may be required by law, two voting squares shall be set off to the right of the proposition submitted at the election, in the manner provided by law, one having the word "YES" printed before it, and the other having the word "NO" printed before it. Section 12. Each voter to vote for the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word "Yes" on the ballot to the right of the proposition; and each voter to vote against the proposition shall stamp or write a cross, or indicate by hole punch or other means, in the blank space opposite the word"No" on the ballot to the right of the proposition. Section 13. This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the City, or once a week for two weeks in a newspaper published less than six days a week in the City. The City Clerk is hereby authorized and directedto make the publications andto transmit, for receipt no later than January 15, 1988, a certified copy of this Ordinance to the appropriate officials of the County of San Mateo responsible for preparing the ballots for the election. Section 14. This ordinance is adopted pursuant to Government Code 36937 of the State of California and being an ordinance calling and ordering an election, shall take effect immediately upon its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 16th day of December, 1987. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council of the City of South San Francisco, held on the 13th day of January, 198~. AYES: Councilmembers Mark N. Addiego, Richard A. Haffey, Gus Nicolopulos, Roborta Cerri Teglia, and Jack Drago NOES: None ABSENT: None ABSTAIN: None ATTEST/s/BARBARA A. BATTAYA, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 13th day of January, 1988. /s/JACK DRAGO, Mayor Published in Enterprise Journal, Wednesday, January 20, 27, 1988. (l18~TFM) December 16, 198~ TO: Honorable City Council SUBJECT: Orange Memorial Park Expansion Project ACTION: Adopt the Resolution Introduce the Ordinance RECOMMENDATION: It is recommended th'at the City Council: 1) approve an April 12, 1988 bond issue for $5,000,000 for the expansion of Orange Memorial Park to include the acquisition and development of approximately 11.5 acres of property; 2) adopt a resolution calling and ordering a Special Municipal Election to be held on April 12, 1988, for the purpose of submitting to the Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park),; 3) adopt a resolution determining that the public- interest and necessity demand the acquisition, constr~ction and completion of Orange Memorial Park Improvements and their financing by means of the issuance of general obligation bonds of the City of South' San Francisco; and 4) introduce an Ordinance ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park Improvements to the qualified voters of the City of South San Francisco at an election to be held for this purpose. DISCUSSION: Pursuant to your request, I am forwarding data on the breakdown of costs for the project. Estimates of $4,920,000 include: 1) the purchase and development of both the Mazzanti and California Water Service Properties, 2) support amenities including parking, lighting, restrooms, snack bar, etc., 3) architectural fees and bo'nd costs. It does not include renovation of Corporation Yards within the park. Corporation Yard renovation was estimated at $720,000.00, but, is contingent upon the future development of the new City Corporation Yard. It.is recommended that the two projects' not be combined and that the City Corporation Yard improvements be deferred. Attached is a Summary of Project Costs which breaks down costs into specific units. If the City Council selects the April 12, 1988 election date, the attached Resolutions and Ordinance must ~~~/~ City Manager AS/SS ~0~ S/SS be acted upon at this deadlines. 2 3 4 5 6 7 December 14, 1987 ORANGE MEMORIAL PARK EXPANSION PROJECT SUMMARY OF ALTERNATIVE PROJECT COSTS Mazzanti Acquisition Cal Wa%er Acquisition Park Development - Mazzanti Property Park Development - Cal Water Property Supplemental Development Architectural Fees Cost of Bond Issuance $1,875,000 $1,500,000 $ 390,000 $ 590,000 $ 405,000 $ 60,000 $ lO0,O00 Sub-Total $4_.920,000 Renovation OMP Corp Yard Development New Corp Yard $ 720,000 $3,300,000 Sub-Total $4,020,000 MAZZANTI PROPERTY 4.6 ACRES Presently this property is occupied with a residential home s'ituated in an area of 8,000 (+-) square feet, 9 wood framed-glass~/plastic framed green houses with a packing, fertilizer storage and warehouse building (136,246 square feet), a well with a 20,000 gallon above ground water tank, and is accessible by a 40' driveway presently detracted with a few abandoned vehicles and' rubbish. After the sale of the property, the owners will remain in residence in the home. The well is a .feature of the property which could provide irrigation to both the Mazzanti property and Cal Water property. If the Mazzanti property is not developed immediately, this well can be accessed for use if the Cal Water property is de~eloped immediately. The estimated cost of development includes funds to demolish the green houses: Acquisition Cost 4.6 Acres $1,875,000 CAL WATER PROPERTY 6.9 ACRES This property is presently occupied with three (3) wells and is being used for Agricultural purposes.~ ' In 1971, the property was zoned P-1 (Professional Office), then in 1978 it was re-zoned to C-O (Commercial Office). In 1984, the General Plan was changed and led to the 1986 general re-zoning of this property to bring it up to the General Plan guidelines. The land presently is used for agriculture uses, and under the present zoning can be used for further agricultural or park use. Cal Water has indicated a willingness to negotiate acquiring the property by either: 1) lease - long term, 2) lease with an option to purchase, and 3) out right Purchase (preference - but will explore alternatives). Any such agreement would be subject to complying with the following conditions: An easement must be granted for access to operate and maintain three (3) existing wells. II. A maintenance road muSt be developed and maintained along with an easement given to service wells. III. All major underground and water lines must be relocated. IV. The use of chemical herbicides and fertilizers would be prohibited because of potential long term impact to the water tabl'e (Cal Water willing to consider options). 3&4 V. If the property is secured through a long term lease, the construction of major'buildings would be prohibited. These restrictions have a direct impact on the value of the property, and have negotiating potential. Staff feels the purchase price of the property is estimated at $5/sq.foot. Acquisition Cost 6.9 Acres $1,503,000 PARK DEVELOPMENT - MAZZANTI AND CAL WATER PROPERTIES To include grading, drainage, turf, irrigation, walkways, parking, fencing (to include backstops if fields are developed), and demolition of green houses. The scope of this work can encompass ballfields to turf area or any combination of:' A. Cost to Develop 4.6 acres $391,000 (Mazzanti) B. Cost to Develop 6..9 acres $587,000 (Cai Water) Development Cost 11.5 acres $978,000 SUPPLEMENTAL DEVELOPMENT AS RELATED TO 11.5 ACRES A. Security Lighting $ 50,000 B. Ballfield Lighting: 1 field to comply with Adult Softball .requirements $190,000 C. Restroom/Snack Shack: combination use facility $ 80,000 D. Bleachers for a maximum 3 ballfields $ 25,000 E. Plsy Equipment Structures $ 60,000 Total Supplemental Development $405,000 ARCHITECTURAL DESIGN Based. on open space/field development %o prepare bid and specification documents, and take pro3ect through bid and development BOND ISSUANCE Sub-Total $ 60,000 $100,000 $4,921,000 o FUTURE DEVELOPMENT OF OMP' CORP YARDS For discussion purposes these facilities can be renovated to serve future' undetermined Recreation needs, to possibly include utilizing the existing Park Corp Yard Building into a Day Care program. Development costs for both yards would include adapting existing buildings and development of open acreage per our present open' space scenario to include grading, drainage, turf and landscape, possible increased parking, and demolition. The OMP Corp Yard is situated on 1.76 acres of land and features 2,100 .square feet of building space. The park yard is situated on .94 acres of land with 1,500 square feet of building space. A. Cost to Renovate Corp Yard $433,000 B. Cost to Renovate Park Corp Yard $283,000 Renovation Costs $716,000 ATTACHMENTS CAL WATER CONDITIONS Under,round and Water Line Relocation: Cal Water will be forwarding copies of drawings the week of December 14, a£ which time staff can assess the cost. Prohibition of Use of Chemicals to Fertilize: Presently, .the users of this property are using organic fertilizers. Cal Water has indicated that the previous user did the same. Staff has been informed that prior to this granular and chemical fertilizers have been used. In speaking with Cal Water, they have indicated a willingness to consider this condition. Park Maintenance staff has indicated that there are chemicals that penetrate 3" - 4" below the surface. Cal .Water's concern is future leaching to the Water Tables at adept of ~0' - 100' They would like to examine these chemicals for consideration. In either event, City staff maintains they can live with this condition, but there is a preference towards use of chemicals. This facility would take an additional 3 maintenance workers to maintain in either case. Staff is awaiting response from the County Farm Advisory Board. !. II ! I' ! '1 ORANGE PARK EXPANSION _,.,..---.4.~ ,~-,,~c,¢~ ORANGE PARK EXPANSION SINGER & HODGES, Inc. OFFICE OF THE CITY CLERK (415) 877-8518 REffc'~VFO '88 JAN-6 R238 CITY $%. SAN FRANCISCO December 21, 1987 Ms. Edna Donaldson San Mateo Times P. O. Box 5400 San Mateo, CA 94402 Subject: Legal Publication for the Enterprise Journal - ELECTION NOTICE - A SPECIAL MUNICIPAL ELECTION OF THE CITY OF S.S.F. WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) Dear Ms. Donaldson: Enclosed for publication in the South San Francisco Enterprise Journal is the above mentioned Notice of Public Hearing for the 1/27/88 Council meeting. PLEASE PUBLISH IN THE FRONT OF THE NEWSPAPER AS YOU DO THE AGENDA DIGEST BECAUSE OF THE IMPORTANCE OF THE LEGAL - THANKS! Please Publish on: Wednesday, January 13, 1988 Wednesday, January 20, 1988 Please acknowledge receipt of this advertisement by signing below and send a Proof of Publication to this Office. Very truly yours, Barbara A. Battaya Enclosures R[~EIV~e undersigned acknowledges receipt of the above referenced notice. JAN 51988 ~;Z"Z,,.~~,~_~~, '"' ' th ~A.~A{~.~J~ San Francisco Enterprise Journal RECEIVE!" DEO 2 2, 1987 400 GRAND AVENUE - P.O. BOX 711 . 94083 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. The following deadlines apply for filing arguments and rebut- tals with the City Clerk: Impartial Analysis not exceeding 500 words - Deadline was 1/25/88 Arguments for and against the Measure not exceeding 300 words - deadline is 2/4/88 Rebuttals for and against the Measure not exceeding 250 words - Deadline is 2/15/88 2/15/88 begins the ten day public examination period The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987, and a regular meeting held on January 13, 1988. Barbara A. Battaya, Cii~}~Clerk City of South San Francisco Dated: February 1, 1988 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition of approximately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon. The following deadlines apply for filing arguments and rebut- tals with the City Clerk: Impartial Analysis not exceeding 500 words - Deadline was 1/25/88 Arguments for and against the Measure not exceeding 300 words - deadline is 2/4/88 Rebuttals for and against the Measure not exceeding 250 words - Deadline is 2/15/88 2/15/88 begins the ten day public examination period The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987, and a regular meeting held on January 13, 1988. Barbara A. Battaya, Cii~~Clerk City of South San Francisco Dated: February 1, 1988 CERTIFICATE OF PUBLICATION (2015.5 C.C.P.) in South San Francisco Enterprise Journal This space is f(~_ ~nt~j~s Filing Stamp '88 J 125 ?3.59 CITY uLr.% .... STATE OF CALIFORNIA County of San Mateo I am a citizen of the United States, and a resident of the County aforesaid, over the age of eighteen years, and not a party to or interested in the above-entitled matter and I am during and at all said times, the Principal Clerk of the Printer and Publisher of South San Francisco Enterprise Journal, a newspaper of general circulation, printed and ,published twice weekly in the City of SOUTH SAN FRANCISCO, County of San Mated, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of San Mated, State of California, under the date of December 30, 1952, Case Number 60036; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to- wit: Wednesday, January 13, 20, 1988 CertificateofPublication ELECTION NOTICE ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five mil- lion dollars principal ($5,000,000) to finance the acquisition andimprovement of approx- imately 11.5 acres for the expansion ol Orange Memorial Park, together with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as other- wise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mated, State ol California, at an Adjourned Regular Meeting held on December 16, 1987. Dated: December 21, 1987 Isl Barbara A. Battay~ Barbara A. Battaya, City Clerl~ City of South San Franciser Published in Enterprise Journal, Wednesday, January 13, 20, 1988. (11863EJ I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at South San Francisco, California, this 2 0 t h day of /s/By Edna O. January , 19_ 88 Donaldson CERTIFICATE OF PUBLICATION O~ICE O~ THE City CLERK (415) 877-8518 December 21, 1987 Clerk of the Board of Supervisors San Mateo County Board of Supervisors Hall of Justice and Records Redwood City, CA 94063 Re: Special Municipal Election April 12, 1988 for General Obligation Bonds for the City of South San Francisco Dear Ms. Brecht: Please be advised that the South San Francisco City Council at their adjourned regular meeting of December 16, 1987 adopted the following Resolutions, and certified copies of same are attached which call the election and give the wording of the Proposition: Resolution NOo 130-87, A Resolution Calling and Ordering A Special Municipal Election to Be Held on April 12, 1988 for the Purpose of Submitting to the Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park) Resolution No. 131-87, A Resolution Determining That the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improve- ments and Their Financing By Means of the Issuance of General Obligation Bonds of the City of South San Francisco If I can be of further assitance please call. Very truly yours, Barbara A. Battaya Enclosures cc: Election Dept. Service Printing Co. 400 GRAND AVENUE - P.O. BOX 711 - 94083 CENTRAL RESOLUTION NO. 130-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON APRIL 12, I988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) WHEREAS, pursuant to Elections Code Section 2650 et seq., the City Council of the City of South San Francisco proposes to call and order a Special Municipal Election in the City for the purpose of submitting to the voters the proposition of issuing general obligation bonds; and WHEREAS, pursuant to Elections Code Section 2500, the special municipal election date of April 12, 1988 is the nearest established regular election date from the date of this resolution, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco, 1. That it calls and orders a Special Municipal Election in the City of South San Francisco on Tuesday, April 12, 1988 for the purpose of submitting to the qualified voters of the City the following proposition: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxi- mately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? 2. That the Special Election shall be held and in all respects conducted in accordance with the provisions of the law, and all persons qualified to vote at regular municipal elections shall be qualified to vote on the proposition submitted at the special municipal election. 3. That the City Clerk is hereby directed to certify to the adoption of this resolution and to transmit a certifie~ copy of this resolution to the County Clerk of San Mateo County and to take or cause to be taken all further actions required by law in connection with the preparation for and conduct of the special election. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 16th day of December , 19 87 by the following vote: AYES: Councilmembers Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teglia, NOES: ABSTAIN: ABSENT: and Jack Drago None None Councilmember Mark N. Addiego '~'ATTEST: /s/ Barbara A. Battaya City Clerk STATE OF CALIFORNIA ~. SS. COUNTY OF SAN MATED C~SCO, Court%' c; San ~ateo, ~f3~e cf ~a[[ccrn~, an ex-o~f[:;c C!erk o~ The C;fy Cobnci~ thereof, do hereby ce~[~ that fha above amd fore- going iS a ~uJl, fr~ and c~rrecf copy of Kesolution No. 130-87 the or[gma: o: wh!ch ls on fi!e n my of:~:e e~ *,hat I · IN WITNESS '¢*'r~EREOF I have hereunto <.et my hand an= :-e seal of ,~., 21st~ o{Dec. ,~ 87 the City o~ Sou~n San Francisco ......... : ..... BAR~ARA A- S~uth San FranCiSCO Girl Ci~k By Deputy Ci~ C~erk J -2- RESOLUTION NO. 131-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS AND THEIR FINANCING BY MEANS OF THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, Section 43600 et seq. of the Government Code of the State of California (the "Act") authorizes cities to issue general obligation bonds to finance municipal improvements upon the completion of proceedings required pursuant to the Act; WHEREAS, the City of South San Francisco intends to issue general obligation bonds under and pursuant to the Act to finance costs related to the acquisition and improvement of park land and recreation facilities for Orange Memorial Park (collectively, the "Improvements"); and WHEREAS, in order to initiate proceedings under the Act to provide for the financing of the Improvements, this Council must make certain findings and determinations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO as follows: 1. The public interest and necessity demands, and it is the intention of this Council to require, the acquisition of new park land and the construction and completion of improvements to that park land, as more particularly described below, and to issue general obligation bonds of the City to finance the cost thereof, subject to completion of the proceedings required by the Act. 2. The Improvements to be acquired, constructed and completed consist of acquisition of land for the expansion of Orange Memorial Park and construction and/or completion thereon of improvements constituting park and recreational facilities. The Improvements may include but are not limited to land acquisition, landscaping, lighting, play areas, picnic areas, and the like. 3. The estimated costs of the Improvements listed in Section 2 above is not to exceed $5,000,000. Said estimated costs may include provision for legal and other fees, and the cost of printing of bonds and other costs and expenses incidental to or connected with the issuance and sale of general obligation bonds to finance the costs of the Improvements. Alternately, the City may finance such incidental costs from funds other than bond funds. -1- 4. This Council hereby finds and determines that the costs of the Improvements require an expenditure by the City greater than the amount allowed for them by the annual tax levy of the City. The principal amount of general obligation bonds of the City to be issued for the Improvements will not exceed the estimated costs set forth in Section 3 above for the Improvements. 5. This resolution is adopted, and general obligation bonds of the City are to be issued, pursuant to Article I (commencing with Section 43600) of Chapter 4 of Division 4 of Title 4 of the Government Code of the State of California. 6. This resolution shall take effect upon its adoption by two-thirds vote of all the members of the City Council of the City. I hereby certify that the foregoing Resolution was regularly. _introd_~ced and adopted by the City Council of the City of South San Francisco, at a ~e(~'r~eting held on the 16th day of December, 1987 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Richard A. Haffey, Gus Nicolopulos, Teglia, Jack Drago None Roberta Cerri Counci!member Mark N. Addiego None ~'"'ATTEST /s/ Barbara A. Battaya City Clerk STATE OF CALIFORNIA t SS. COUNT'f OF ~AN ~ATEO J, Barbera A. Baft~ve, C[N Clerk of the c~fY of $o'.'f~ San Fra~- , cJsco, Ccun~ o{ San ~afeo, S~afe o: Ca~:~ornia, an ex-o~fJcio C',erk o~ the Ci~ CounciJ thereof, do hereby ce~fy that the above and fore- going is a full, true and correct copy of Resolution No. 131-87 , -2- the o.;g '~ of wh'ck ;s on :?e n ~-'. c;;;.~e, and that . ~lS~; ofuec the C:~ ~: S~um S~n Francisco ms ....... ~ay . BAR2ARA A. C2~ Clerk By Deputy C;~ C~erk OFFICE OF THE C~TY CLERK (415) 877-8518 December 21, 1987 Ms. Edna Donaldson San Mateo Times P. O. Box 5400 San Mateo, CA 94402 Subject: Legal Publication for the Enterprise Journal - ELECTION NOTICE - A SPECIAL MUNICIPAL ELECTION OF THE CITY OF S.S.F. WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) Dear Ms. Donaldson: Enclosed for publication in the South San Francisco Enterprise Journal is the above mentioned Notice of Public Hearing for the 1/27/88 Council meeting. PLEASE PUBLISH IN THE FRONT OF THE NEWSPAPER AS YOU DO THE AGENDA DIGEST BECAUSE OF THE IMPORTANCE OF THE LEGAL - THANKS! Please Publish on: Wednesday, January 13, 1988 Wednesday, January 20, 1988 Please acknowledge receipt of this advertisement by signing below and send a Proof of Publication to this Office. Very truly yours, Barbara A. Battaya Enclosures The undersigned acknowledges receipt of the above referenced notice. South San Francisco Enterprise Journal 400 GRAND AVENUE - P.O. BOX ?1! o 94083 ELECTION NOTICE A SPECIAL HUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at saio Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxima- tely 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meetin§ held on December 16, 1987. Dated: December 21, 1987 /s/ Barbara A. Battaya Barbara A. Battaya, City Clerk City of South San Francisco ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxima- tely 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987. Barbara A. Battaya, City CI~< City of South San Francisco Dated: December 21, 1987 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The following Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five mil- lion dollars principal ($5,000,000) to finance the acquisition andimprovement of approx- imately 11.5 acres for the expansion ot Orange Memorial Park, together with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be ol~ened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed except as other- wise provided in Section 1430~ of the Eleetiens Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State ol California, at an Adjourned Regular Meeting held on December 16, 1987. Dated: December 21, 1987 /s/Barbara A. Battaya Barbara A. Battaya, City Clerk City of South San Francisco Published in Enterprise Journal, Wednesday, January 13, 20, 1988. (11863EJ~ December 16, 1987 TO: Honorable City Council SUBJECT: ACTION: Orange Memorial Park Expansion Project Adopt the Resolution ~/~__~OJ--~ 7 j /3 I-~-7 Introduce the Ordinance RECOMMENDATION: It is recommended that the City Council: 1) approve an April 12, 1988 bond issue for $5,000,000 for the expansion of Orange Memorial Park to include the acquisition and development of approximately 11.5 acres of property; 2) adopt a resolution calling and ordering a Special Municipal Election to be held on April 12, 1988, for the purpose of submitting to the Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park); 3) adopt a resolution determining that the public interest and necessity demand the acquisition, construction and completion of Orange Memorial Park Improvements and their financing by means of the issuance of general obligation bonds of the City of South San Francisco; and 4) introduce an Ordinance ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park Improvements to the qualified voters of the City of South San Francisco at an election to be held for this purpose. DISCUSSION: Pursuant to your request, I am forwarding data on the breakdown of costs for the project. Estimates of $4,920,000 include: 1) the purchase and development of both the Mazzanti and California Water Service Properties, 2) support amenities including parking, lighting, restrooms, snack bar, etc., 3) architectural fees and bond costs. It does not include renovation of Corporation Yards within the park. Corporation Yard renovation was estimated at $720,000.00, but, is contingent upon the future development of the new City Corporation Yard. It is recommended that the two projects not be combined and that the City Corporation Yard improvements be deferred. Attached is a Summary of Project Costs which breaks down costs into specific units. If the City Council selects the April 12, 1988 election date, the attached.~--Res°luti°ns and Ordinance must be acted upon at this City Manager December 14, 1987 1 2 3 4 5 6 7 ORANGE MEMORIAL PARK EXPANSION PROJECT SUMMARY OF ALTERNATIVE PROJECT COSTS Mazzanti Acquisition Cal Water Acquisition Park Development - Mazzanti Property Park Development - Cal Water Property Supplemental Development Architectural Fees Cost of Bond Issuance $1,875 000 $1,500 000 $ 390 000 $ 590 000 $ 405 000 $ 60 000 $ 100 000 Sub-Total 24,920,000 Renovation OMP Corp Yard Development New Corp Yard $ 720,000 $3,300,000 Sub-Total 24,020,000 1. MAZZANTI PROPERTY 4.6 ACRES Presently this property is occupied with a residential home situated in an area of 8,000 (+-) square feet, 9 wood framed-glass/plastic framed green houses with a packing, fertilizer storage and warehouse building (136,246 square feet), a well with a 20,000 gallon above ground water tank, and is accessible by a 40' driveway presently detracted with a few abandoned vehicles and rubbish. After the sale of the property, the owners will remain in residence in the home. The well is a feature of the property which could provide irrigation to both the Mazzanti property and Cal Water property. If the Mazzanti property is not developed immediately, this well can be accessed for use if the Cal Water property is developed immediately. The estimated cost of development includes funds to demolish the green houses: Acquisition Cost 4.6 Acres $1,875,000 CAL WATER PROPERTY 6.9 ACRES This property is presently occupied with three (3) wells and is being used for agricultural purposes. In 1971, the property was zoned P-1 (Professional Office), then in 1978 it was re-zoned to C-O (Commercial Office). In 1984, the General Plan was changed and led to the 1986 general re-zoning of this property to bring it up to the General Plan guidelines. The land presently is used for agriculture uses, and under the present zoning can be used for further agricultural or park use. Cal Water has indicated a willingness to negotiate acquiring the property by either: 1) lease - long term, 2) lease with an option to purchase, and 3) out right purchase (preference - but will explore alternatives). Any such agreement would be subject to complying with the following conditions: An easement must be granted for access to operate and maintain three (3) existing wells. II. A maintenance road must be developed and maintained along with an easement given to service wells. III. All major underground and water lines must be relocated. IV. The use of chemical herbicides and fertilizers would be prohibited because of potential long term impact to the water table (Ca] Water willing to consider options). 3&4 o V. If the property is secured through a long term lease, the construction of major buildings would be prohibited. These restrictions have a direct impact on the value of the property, and have negotiating potential. Staff feels the purchase price of the property is estimated at $5/sq.foot. Acquisition Cost 6.9 Acres $1,503,000 PARK DEVELOPMENT - MAZZANTI AND CAL WATER PROPERTIE~ To include grading, drainage, turf, irrigation, walkways, parking, fencing (to include backstops if fields are developed) and demolition of green houses. The scope of this work can encompass ballfields to turf area or any combination of: A. Cost to Develop 4.6 acres $391,000 (Mazzanti) B. Cost to Develop 6.9 acres $587,000 (Cai Water) Development Cost 11.5 acres $978,000 SUPPLEMENTAL DEVELOPMENT AS RELATED TO 11.5 ACRES A. Security Lighting $ 50,000 B. Ballfield Lighting: 1 field to comply with Adult Softball requirements $190,000 C. Restroom/Snack Shack: combination use facility $ 80,000 D. Bleachers for a maximum 3 ballfields $ 25,000 E. Play Equipment Structures $ 60,000 Total Supplemental Development ARCHITECTURAL DESIGN Based on open space/field development to prepare bid and specification documents, and take project through bid and development BOND ISSUANCE Sub-Total $405,000 $ 60,000 $100,000 $4,921,000 8. FUTURE DEVELOPMENT OF OMP CORP YARDS For discussion purposes these facilities can be renovated to serve future undetermined Recreation needs, to possibly include utilizing the e×isting Park Corp Yard Building into a Day Care program. Development costs for both yards would include adapting existing buildings and development of open acreage per our present open space scenario to include grading, drainage, turf and landscape, possible increased parking, and demolition. The OMP Corp Yard is situated on 1.76 acres of land and features 2,100 square feet of building space. The park yard is situated on .94 acres of land with 1,500 square feet of building space. A. Cost to Renovate Corp Yard $433,000 B. Cost to Renovate Park Corp Yard $283,000 Renovation Costs $716,000 ATTACHMENTS CAL WATER CONDITIONS Underground and Water Line Relocation: Cai Water will be forwarding copies of drawings the week of December 14, at which time staff can assess the cost. Prohibition of Use of Chemicals to Fertilize: Presently, the users of this property are using organic fertilizers. Cai Water has indicated that the previous user did the same. Staff has been informed that prior to this granular and chemical fertilizers have been used. In speaking with Cal Water, they have indicated a willingness to consider this condition. Park Maintenance staff has indicated that there are chemicals that penetrate 3" - 4" below the surface. Cai Water's concern is future leaching to the Water Tables at adept of 90' - 100' They would like to examine these chemicals for consideration. In either event, City staff maintains they can live with this condition, but there is a preference towards use of chemicals. This facility would take an additional 3 maintenance workers to maintain in either case. Staff is awaiting response from the County Farm Advisory Board. ORANGE PARK .EXPANSION SINGER & HODGES, inc. t / / / f / / / / / ORANGE PARK .EXPANSION SINGER & hKDDGES, Inc. RESOLUTION N0.130-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON APRIL 12, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) WHEREAS, pursuant to Elections Code Section 2650 et seq., the City Council of the City of South San Francisco proposes to call and order a Special Mu6icipal Election in the City for the purpose of submitting to the voters the proposition of issuing general obligation bonds; and WHEREAS, pursuant to Elections Code Section 2500, the special municipal election date of April 12, 1988 is the nearest established regular election date from the date of this resolution, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco, 1. That it calls and orders a Special Municipal Election in the City of South San Francisco on Tuesday, April 12, 1988 for the purpose of submitting to the qualified voters of the City the following proposition: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxi- mately 11.5 acres for the expansion of Orange Memorial Park, together with improvements to be constructed thereon? _ 2. That the Special Election shall be held and in all respects conducted in accordance with the provisions of the law, and all persons qualified to vote at regular municipal elections shall be qualified to vote on the proposition submitted at the special municipal election. 3. That the City Clerk is hereby directed to certify to the adoption of this resolution and to transmit a certified copy of this resolution to the County Clerk of San Mateo County and to take or cause to be taken all further actions required by law in connection with the preparation for and conduct of the special election. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 16th day of December , 19 87 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Councilmembers Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Te~lia, and Jack Drago None None Councilmember Mark N. Addiego ~'~ATTEST: /s/ Barbara A. Battaya City Clerk -2- RESOLUTION NO. 131-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE ACQUISITION, CONSTRUCTION AND COMPLETION OF ORANGE MEMORIAL PARK IMPROVEMENTS AND THEIR FINANCING BY MEANS OF THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, Section 43600 et seq. of the Government Code of the State of California (the "Act") authorizes cities to issue general obligation bonds to finance municipal improvements upon the completion of proceedings required pursuant to the Act; WHEREAS, the City of South San Francisco intends to issue general obligation bonds under and pursuant to the Act to finance costs related to the acquisition and improvement of park land and recreation facilities for Orange Memorial Park (collectively, the "Improvements"); and WHEREAS, in order to initiate proceedings under the Act to provide for the financing of the Improvements, this Council must make certain findings and determinations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO as follows: 1. The public interest and necessity demands, and it is the intention of this Council to require, the acquisition of new park land and the construction and completion of improvements to that park land, as more particularly described below, and to issue general obligation bonds of the-City to finance the cost thereof, subject to completion of the proceedings required by the Act. 2. The Improvements to be acquired, constructed and completed consist of acquisition of land for the expansion of Orange Memorial Park and construction and/or completion thereon of improvements constituting park and recreational facilities. The Improvements may include but are not limited to land acquisition, landscaping, lighting, play areas, picnic areas, and the like. 3. The estimated costs of the Improvements listed in Section 2 above is not to exceed $5,000,000. Said estimated costs may include provision for legal and other fees, and the cost of printing of bonds and other costs and expenses incidental to or connected with the issuance and sale of general obligation bonds to finance the costs of the Improvements. Alternately, the City may finance such incidental costs from funds other than bond funds. -1- 4. This Council hereby finds and determines that the costs of the Improvements require an expenditure by the City greater than the amount allowed for them by the annual tax levy of the City. The principal amount of general obligation bonds of the City to be issued for the Improvements will not exceed the estimated costs set forth in Section 3 above for the Improvements. 5. This resolution is adopted, and general obligation bonds of the City are to be issued, pursuant to Article I (commencing with Section 43600) of Chapter 4 of Division 4 of Title 4 of the Government Code of the State of California. 6. This resolution shall take effect upon its adoption by two-thirds vote of all the members of the City Council of the City. I hereby certify that the foregoing Resolution was regularl,¥, introduced and adopted by the City Council of the City of South San Francisco, at a ~c~'r~eting held on the 16th day of December, 1987 by the following vote: AYES: NOES: Councilmembers Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teglia, Jack Drago None ABSENT: Counci!member Mark N. Addiego ABSTAIN: None '"ATTEST /s/ Barbara A. Battaya City Clerk -2- OFFICE OF CITY CLERK December 21, 1987 Mr. Bruno Scopesi 333 E1 Camino Real South San Francisco, CA 94080 Re: Amended Agreement Between the Mazzantis and the City of South San Francisco Concerning Acquisition of Property Adjacent to Orange Memorial Park Dear Mr. Scopesi: Attached please find two fully executed above mentioned original agreements for your clients, as well as a certified copy of Resolution No. 127-87 "A Resolution Approving An Amendment to the Agreement with Peter and Enes Mazzanti for the Acquisition of Property to Expand Orange Memorial Park," as adopted by the City Council at their regular meeting of December 9, 1987. If this Office can be of further assistance please call. Very truly yours, Barbara A. Battaya City C1 erk Enclosures cc: City Attorney Armento with att. 400 GRAND AVENUE - P.O. BOX 71I - 94083 sta December 9, 1987 To: Subject: Action: The Honorable City Council AMENDMENT TO PROPERTY ACQUISITION AGREEMENT, PETER & ENES MAZZANTI Resolution -~-~Z~~d RECOMMENDATIONS: It is recommended that the City Council adopt a resolution amending the agreement. DISCUSSION: In May 1987 the City and the Mazzantis entered into an agreement to acquire the nursery property for the expansion of Orange Park. The agreement anticipated voter approval of a financing program would be sought at the November 1987 election. Since a measure was not placed before the voters in November, the amendment is necessary to adjust the terms of the agreement to provide for voter approval during the first half of 1988. VALERIE J. ARMENTO City Attorney VJA/mm AS/SS 202 (10/86) November 25, 1987 To: Subject: Action: The Honorable City Council AMENDMENT TO PROPERTY ACQUISITION AGREEMENT, PETER & ENES MAZZANTI Resolution RECOMMENDATIONS: It is recommended that the City Council adopt a resolution amending the agreement. DISCUSSION: In May 1987 the City and the Mazzantis entered into an agreement to acquire the nursery property for the expansion of Orange Park. The agreement anticipated voter approval of a financing program would be sought at the November 1987 election. Since a measure was not placed before the voters in November, the amendment is necessary to adjust the terms of the agreement to provide for voter approval during the first half of 1988. VALERIE J. ARMENTO City Attorney VJA/mm RESOLUTION NO. 127-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMEN~ENT TO THE AGREEMENT WITH PETER AND ENES MAZZANTI FOR THE ACQUISITION OF PROPERTY TO EXPAND ORANGE ~MORIAL PARK WHEREAS, by Resolution No. 52-87 Peter and Enes Mazzanti and the City entered into an Agreement to provide for the acquisition of property owned by the Mazzantis for the expansion of Orange Memorial Park; and WHEREAS, a condition precedent in that Agreement involved electorate approval of a financing program at the November 1987 election; and WHEREAS, the anticipated proposal will not be submitted to the electorate until a later date, thus making it necessary to modify the various timing provisions set forth in the original Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it approves of the Agreement entitled "Amendment To The Agreement Between the City of South San Francisco and Peter and Enes Mazzanti Concerning The Acquisition Of Property Adjacent To Orange Memorial Park" and authorizes the Mayor to execute such an Agreement in substantially the same form as the Agreement attached as Exhibit "1". I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 9th day of December , 19 87 by the following vote: AYES: Councilmembers Mark N. Addieqo, Richard A. Haffey, Gus Nicolopulos, Roberta Cerri Teqlia, and Jack Draqo NOES: None ABSTAIN: None ABSENT: None % A1-FEST: /s/ Barbara A. Battaya City Clerk Exhibit "1" to Resolution No. 127-87 AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND PETER AND ENES MAZZANTI CONCERNING THE ACQUISITION OE PROPERTY ADJACENT TO ORANGE MEMORIAL PARK THIS AMENDMENT is dated DECEMBER 9 , 1987 and is by and between the City of South San Francisco (hereinafter "City") and Peter and Enes Mazzanti (hereinafter "Owners"). This Amendment amends the "Agreement Between the City of South San Francisco and Peter and Enes Mazzanti Concerning the Acquisition of Property Adjacent to Orange Memorial Park" dated May 14, 1987 and approved by Resolution No. 52-87. City and Owners agree that this Amendment alters the time periods established in the original Agreement as follows: e Payment Term. The payment term shall be a period of six (6) years, commencing January 1, 1989. No interest shall accrue on any unpaid balance during the Payment Term. Time of Transfer to City. At the end of five (5) years, that is by December 1993, City will notify Owner if it wishes to take control of the Property by December 1994, or is willing to extend the period during which Owners are in possession of the Property. If the City wishes to take control, Owners shall vacate the Property in a timely fashion. If the City desires to extend the period during which Owners are in possession of the Property, Owners will pay City fair market value on a monthly basis for the period of extended occupancy. Condition Precedent. A condition precedent to provisions I through 5 is that the electorate approve a park expansion financing program at a local election held prior to July 1, 1988. The City shall utilize a financial advisor to formulate the financing program and to assist in formulating the measure to be submitted to the electorate. Payment of the financial advisor shall be subject to future sale of bonds. If the electorate does not approve the park expansion financing program this Agreement becomes void. All of the other provisions of the May 14, 1987 Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement. ATTEST: ~y~/G~C~erk ~/~~xY~ By: By: By: CITY: CITY OF SOUTH SAN FRANCISCO, a Municipal corporat~gn ~i~y P~anager OWNERS: APPROVED AS TO FORM: City Ati$6rney -2- rl'Y OF SOUTH SAN FRANCISC(' INTER-OFFICE MEMORANDUM DATE: DecPmhpr 16, 1987 ~ity Manager; T()://"~City £1Prk SUBJECT: AMENDMENT TO MAZZANTI AGREEMENT FROM: City Attorney Bruno Scopesi has obtained the signatures of the Mazzantis on an original and two copies to the Amended Agreement. The City Manager should sign all three and transmit them to the City Clerk. The Clerk should complete the processing, keep the original and return both copies to Mr. Scopesi (333 E1Camino Real, South San Francisco, 94080). Please provide this~ office with a photocopy of the completed original. VALERIE J. ARMENTO City Attorney VJA/mm Enc. SS/205/6/86 November 25, 1987 TO: SUBJECT: ACTION: Honorable City Council Orange Memorial Park Expansion Direction RECOMMENDAT ION: It is recommended that the City Council, by motion, give direction to staff regarding: l) selection of a date for a special bond election, and 2) sizing of the issue. DISCUSSION: The Orange Memorial Park Expansion Project could range in scope from the acquisition of the Mazzanti Property (4.6 acres) to acquisition and development of both the Mazzanti and California Water Service Property (total ll.5 acres). The City, currently has a revised agreement with the Mazzanti family to purchase 4.6 acres, at an established price, upon voter approval. Staff is, currently, in negotiation with California Water Service Company to acquire use of approximately 6.9 acres through lease, purchase, or a combination of both. California Water Service Company has agreed to make the land available for park expansion purposes with the'following conditions: 1. An easement must be granted for access to operate and maintain three (3) existing wells on the property. 2. A maintenance road must be developed and maintained along with an easement given to service the wells. 3. All major underground and water lines must be relocated. e The use of chemical herbicides and fertilizers would be prohibited because of potential long impact to the water table. If the property is secured through a long term lease, the construction of major buildings would be prohibited. It is felt that none of these restrictions would be prohibitive to the City's use of the property. Staff Report - November ~ , 1987 Orange Memorial Park Expansion Page 2 The California Water Service Company has expressed a preference for the City to purchase the property. At this time, they have agreed to continue to explore alternatives for acquisition to include outrigh~ purchase, long term lease, or a lease/purchase arrangement. Staff is also exploring various funding alternatives for acquiring the property. Staff recommends that the City retain an updated appraisal of the value of the property. The California Water Service Property is zoned Open-Space. The conceptual plan that was developed some months ago is included as attachment "B". The plan illustrates two major turf area divided by a maintenance road with support amenities such as parking, restrooms, a small childrens play area, and a family picnic area. The conceptual p~an is intended to illustrate general spaces. If approved, specific uses and amenities can be refined through public input during the master plan phase. Staff has recommended three (3) alternatives for sizing of the bond issue as follows: Alternative #1 - Acquisition of 4.6 acres only Cost of Bond Issuance $ 1,875,000 100,000 $ 1,975,000 II. Alternative #2 - Acquisition of 4.6 acres Lease of Cal. Water Property (6.9 acres) Development of ll.5 acres Cost of Bond Issuance $ 3,195,000 100,000 $ 3,295,000 III. Alternative #3 Purchase and Development of Additional ll.5 acres Cost of Bond Issuance $ 4,900,000 lO0,000 $ 5,000,000 Stone and Youngberg has prepared a scenario for each alternative that outlines the estimated annual assessment to the property owner, based upon market value of the property. For example, based upon an assessed valuation of $110,O00, the estimated annual tax rate to the property owner would be as follows: 20 Year Amortization 25 Year Amortization Alternative #1 ($1,975,000) 7.59 $ 7.15 Alternative #2 ($3,295,000) $12.54 $11,77 Alternative #3 ($5,000,000) $19.25 $17.93 Based upon an assessed valuation of $110,O00, any alternative could be achieved for less than a $20.00 per year assessment. Staff Report - November 25, 1987 Orange Memorial Park Expansion Page 3 Staff recommends four (4) potential dates for the bond election: 1) April 12, 1988; 2) June, 1988; 3) November, 1988; and 4) March, 1989. The following represents the pro's and con's of each date: Pro Con April 12, 1988 Single issue on ballot Special election costs Short time period June, 1988 More time Consolidation of election Presidential Primary Gann Initiative Potential Transit Tax Issue November, 1988 More time Presidential Election Consolidation of election March, 1989 Single ballot issue Special election cost 16 month delay in project Based upon public input at two (2) public hearings held within the past six (6) months, it is felt the April 12, 1988 date is feasible because: l) the community has been aware of the potential expansion for many years, 2) there seems to be unilateral support for the project, and 3) park bonds, generally receive public support. On November 19, 1987 the Park and Recreation Commission held a public hearing to generate more public input on the project. Approximately 15 residents attended and four (4) gave testimony. Of those who gave testimony, three strongly supported acquisition and development and one supported the inclusion of all park needs into a major bond issue. Aside from the fact that expansion of the issue could confuse the voter, the City does not have a master plan of total park and recreation needs. It would take months to properly develop a needs assessment and the time is not available. Forwarded for your review are: 1) information from Stone and Youngberg regarding preliminary sizing and estimated tax rates for various scenarios, 2) the conceptual plan, 3) a project schedule based upon an April 12, 1988 election, and notes from public testimony at the November 19 public hearing. Staff requests direction on the following issues: 1) the date of the special election, and 2) the scope of the issue. If the April 12, 1988 date is confirmed, the following documents must be agendized for action at your December 9, 1987 City Council meeting: 1. Resolution Calling for Bond Election 2. Resolution Requesting Election Services from County 3. Resolution Calling for Special Election 4. 1st Reading of the Election Ordinance Staff Report - November 25, 1987 Orange Memorial Park Expansion Page 4 In addition to staff, Tom Lockard, Financial Advisor, and Bell Madison, Bond Counsel, will be present at the meeting to address any questions. Mark Lewis City Manager Lyl~4~ W. Norton Director of Recreation and Community Services LWN/wdc DATE: TO: F ROM: RE:' 8-TONE & YOU'NG 3ERG MEMBEr: PACIFIC ST~CK EXCHANGE HEHORANDUN October 27, 7987 Those persons on the attached Distribution List Tom Lockard, Stone & Youngberg Preliminary Sizing Estimated Tax Rates and Tentative Scheduling OCT 2 8:1.98' After meeting with the finance team again, I have adjusted the debt service scenarios for the proposed issuance of General Obligation Bonds. As you recall, the sizing of the issue is based on the acquisition cost of purchasing only land or land and improvements, each including the fixed costs of issuance. Scenarios Scenarios ! I! Iii IV 20 years '25 years 20 years 25 years Land and Improvements Cost of Issuance Issue Size $3,795,OO0 Land $t,875,000 700,000 Cost of Issuance 100,000 $3,295,000 Issue Size $1,975,000 A par purchase of Aa rated bonds in the current market was assumed for all scenarios. The coupons on the, bonds reflect a premium structure that will produce between 1,5% and 1.7% for the underwriter. The annual debt service payments for both 20 and 25 year amortization periods are structured approximately "level" The following table shows the estimated tax rate, five years into the future, based on assessed valuation information from San Mateo County. Fiscal Year Assessed Valuation (in thousands) Tax Rate ($ per $100) I II III tV Land/Imp. Land/Imp. Land Only Land Only 20 years 25 years 20 years 25 years 1987/88 (1) 1988/89 (2) 1989/90 (2) 1991/92 (2) $2,913,733 1.14¢ 1.07¢ 0.69¢ 0.65¢ 2,972,008 1.11 1.05 0.68 0.63 3,031,448 1.10 1.04 0.66 0.63 3,153,918 1.07 1.02 0.65 0.61 (1) County of San Mateo (2) 102% of prior year's assessed valuation I am also including revised estimated tax bills under each of the different scenarios. If you h~ve questions or need any clarification ple~je~,~e~.~ct:~ Amy 3uT]ien or myself. (~O~l~ 8TONE & YOUNGBERG MEMBERS: PACIFIC STOCK EXCHANGE CITY OF SOUTH SAN FRANCISCO 1988 GENERAL. OBLIGATION BONDS Distribution List Mark Lewis Deputy City Manager City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8500 Valerie Armento City Attorney City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8515 3eanne Goodrich City Librarian City of So. San Francisco 840 Nest Orange Avenue So. San Francisco, CA 94080 (415) 877-8521 Scott Sollers Tom Lockard Stone & Youngberg Suite 2800 One California Street San Francisco, CA 94111. (415) 981-1314 Paul Th~mmig Bill Madison 3ones Hall H~ll & White Suite 1950 Four Embarcadero Center San Francisco, GA 94111 (415) 391-5780 Lyle Norton Director, Recreation and Community Services City of So. San Francisco Municipal Services Building 33 Arroyo Drive P.O. Box 711 So. San Francisco, CA 94080 (415) 877-8560 (06761) 10/27/87 CE~IRAL RECORDS Land Acquisition City of South San Francisco Proposed General Obligation Bonds of 1988 Land Acquisition Estimated Tax Bill Based on the Current Harket and FY 1988/89 Estimated Assessed Valuation FOr a Property Assessed at $35,000 The Estimated. Tax Bill would be III 20 Year Amortization $2.41 IV 25 Year Amortization $2.28 For a Property Assessed at $50,000 The Estimated Tax Bill would be III 20 Year Amortization $3.45 IV 25 Year Amortization $3.25 For a Property Assessed at $80,000 The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $5.52 $5.20 For a Property Assessed at $110,OOO The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $7.59 $7.15 For a Property Assessed at $140,OOO The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $9.66 $9.10 The estimated annual tax bill per $1,000 of assessed valuation is 6.9¢ for a 20 year amortization and 6.5¢ for a 25 year amortization. (09801) ~ Land Acquisition and Improvements City of South San Francisco Proposed General Obligation Bonds of 1988 Land Acquisition and Improvements Estimated Tax Bill Based on the Current Harket and FY 1988/89 Estimated Assessed Valuation For a Property Assessed at $35,OOO The Estimated Tax Bill would be I II 20 Year Amortization 25 Year Amortization $3.99 $3.75 For a Property Assessed at $50,OOO The Estimated Tax Bill would be I II 20 Year Amortization 25 Year Amortization $5.70 $5.35 For a Property Assessed at $80,OO0 The Estimated Tax Bill would be I II 20 Year Amortization 25 Year Amortization $9.12 $8.56 For a Property Assessed at $110,OOO The Estimated Tax Bill would be I 20 Year Amortization $12.54 II 25 Year A,,,~,ti ~ ~ Z~,On $11.77 For a Property Assessed at $140~OOO The Estimated Tax Bill would be I 20 Year Amortization $15.96 II 25 Year Amortization $14.98 The estimated annual tax bill per $1,000 of assessed valuation is l].4¢ for a 20 year amortization and 10.7¢ for a 25 year amortization. MEMI~ER$: PACIFIC ~;IOCK FXCMANG[ Date' TO: FROM: RE: M E M O R A N D U M November ll, 1987 Those persons' On the attached Distribution List Tom Lockard, Stone ~ Youngberg Preliminary Sizing and Estimated Tax Rates As requested, we have structured a $5,O00,O00 general Obligation issue using 20 and 25 year amortization terms. He have.assumed in both amortization scenarios' tan'd'and Improvements Cost of Issuance Issue Size $4,900,000 100,000 $5,000,000 As with our previous scenarios, the coupons reflect a premium structure designed to Froduce.l.5% to 1.7% for the underwriter and Ss based upon a par purchase of Aa rated bonds in today's market. "Level" annual debt service payments are given for both an~ortization terms. The fOllowing table shows the estimated tax rate for the next,five years based on assessed valuation information from San Mateo County, Fiscal Year Assessed Valuation (in thousands) Tax Rate (S per $1OO) 20 year 25 year 1987/88 (1) $2,913,733 --- 1988/89 (2) 2,972,008 1.75¢ 1.63¢ 1989/90 (2) 3,031,448 1.72 1.62 1990/91 (2) 3,092,077 1.69 1.58 1991/92 (2) 3,153,918 1.65 1.54 (1) County of San Mateo (2) 102% of prior year's assessed valuation You wi]] also find enclosed estimated tax bills corresponding to a $5,OO0,OOO issue. If you have any questions while reviewing this information, please feel free to call me or Amy 3ullien. (09961) 8TONE Y.0UNGBERG ~.EW. BERS: PACIFIC S-rOCK EXCHANGE CITY OF SOUTH SAN FRANCISCO 1988 GENERAL .0BL I GAT-I Ol'i BONDS Distribution List Hark Lewis Deputy City Hanager City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8500 Valerie Armento City Attorney City of So. San Francisco' 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8515 Jeanne Goodrich City Librarian City of So. San Francisco 840 West Orange Avenue So. San Francisco, CA 94080 (415) 877-8521 Scott Sollers Tom Lockard S'tone & Youngberg Suite 2800 One California Street San Francisco, CA 9411t=. (415) 981-t314 Paul Thimmig Bill Madison Jones Hall Hill & White Suite 1950 Four Embarcadero Center San Francisco, CA 94111 (415) 391-S780 Lyle Norton Director, Recreation and Community Services Alex Tsitovich City of So. San Francisco Hunicipal. Services Building 33 Arroyo Drive P.O. Box 711 So. San Francisco, CA 94080 (415) 877-8560 (06761/06801).. 11/11/87 $5,000,000 City of South San Francisco Proposed General Obligation Bonds of 1988 Estimated Tax B~11 Based on the Current h~arket and FY 1988/89 £stimated Assessed Valuation For a Property Assessed at S35,0OO The Estimated Tax. Bill would be 20 Year Amortization $6.13 For a Property Assessed at S50,0OO The Estimated Tax Bill would be 20 Year Amortization $8.75 25 Year Amortization $5.71 25 Year AmOrtization $8.15 For a Property Assessed at $80,OOO The Est~ma. ted Tax Bill would be 20 Year Amortization $14.00 25 Year Amortization $13.04 For a Property Assessed at SllO,OOO The Estimated Tax B~ll would be 20 Year Amortization S19.25 25 Year Amortization $17.93 For a Property Assessed at $140,OO0 The Estimated Tax Bill would be 20 Year Amortization $24.50 25 Year Amortization $22.82 The estimated annual tax b~ll per $1,000 of assessed valuation is 17.5¢ for a 20 year amortization and 16.3¢ for a 25 year amortization. (09961) .... ,' SINGER & HODGES, Inc. ORANGE PARK EXPANSION PREL IMINA,~Y TIIqEI'ABLE' OkANGE ·PARK E×PAI~tSION BOND CAMPA..~N October 29 November 19 Early December December 9 December 9 - January 1988 January 8 January 13 January - February January I - 15 January 15 January 15 - 31 January 25 February 4 February 1 - 28 February 14 Park and Recreat.!.on Con,mission.- Project Update/Set Public Hearing .... Park and Recreation Commission - Public Hearing Commission Endorsement Council Work Session/Determine Scope of Issue City council - a. Resolution Calling for Bonds Election b. Resolutions Requesting Election Services fro~ c. Resolutions calling for Special Election d. Election Ordinance (lst Reading) Recruit Campaign Coordinator/Co~ittee Voter Analysis/Devil's Advocate Questions Prepare and Print Fact Sheet Campaign Coordinator/Committee Announced 2nd Reading of Ordinance '. Resolution authorizing City Attorney to prepare Measu'~e Analysis Develop Campaign Slogan Develop Speaker's':Bureau/Call to Schedule in August- September/Prepare Display Boards'& Slide Shows Schedule Fundraisers Prepare Letters for Leaders of Support Groups Secure Endorsements Identify and Contact Absentee Vote Secure Endorsements Telephone Survey? Fundraiser Arguments Open Deliver ~esol utions Schedule 'Speakers Prepare and Print Brochure Deadline for Arguments/Call for Rebuttals Analysis of Measure due to city Clerk Close of Rebuttals/ lO Day Public Examination Schedule Speakers Fundraiser Close of Public Examination lqarch 1988 April II April 12 Endorsement £ards Pyramid Tel6phone Calls/Remind "Yes" ~ote Schedule Speakers Distribution of Brochures by Support Groups Endorsement Cards E1 ec~:ion NOTES: NOVEMBER 19, 1987 PUBLIC HEARING PARK AND RECREATION~COMMISSION Public Hearing Opened: 7:45 p.m. 1. Jim Keegan Universal agreement - buy Mazzanti and do whatever California Water. Should address buy and development. If you don't buy and develop you get fallow land. Don't be afraid. Mr. Keegan feels we can get 2/3 vote because it is Recreation Issue and He would be very willing to participate. 2. Andy Rodondi Agree with Keegan, but include 3 acres Of new Corp and Park Yard relocation. 3. A1 Waters - Westborough Concern Citizens Hesitant to support Bond to develop all parks. San Mateo did it. Do not want to support unless Westborough gets some money. Said only if it helps ALL parks 4. Carol Meza Lives in Brentwood - go for Orange Memorial Park wholeheartedly - permanent snack bar, stands (portable). Public Hearing Closed: 8:30 p.m. ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF APRIL, 1988 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE PROPOSITION OF ISSUING GENERAL OBLIGATION BONDS (ORANGE MEMORIAL PARK) The followin9 Proposition shall be submitted to the voters at said Special Municipal Election: PROPOSITION: Shall the City of South San Francisco be authorized to issue General Obligation Bonds in the amount of five million dollars principal ($5,000,000) to finance the acquisition and improvement of approxima- tely 11.5 acres for the expansion of Orange Memorial Park, toyether with improvements to be constructed thereon? If there are any questions please call the City Clerk's Office at (415) 877-8518. The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at an Adjourned Regular Meeting held on December 16, 1987. ~arbara A. Battaya, City Cl~f/~ City of South San Francisco Dated: December 21, 1987 December 9, 1987 TO: SUBJECT: ACTION: Honorable City Council Orange Memorial Park Expansion Direction RECOMMENDATION: It is recommended that the City Council, by motion, give direction to staff regarding: l) selection of a date for a special bond election, and 2) sizing of the issue. DISCUSSION: The Orange Memorial Park Expansion Project could range in scope from the acquisition of the Mazzanti Property (4.6 acres) to acquisition and development of both the Mazzanti and California Water Service Property (total 11.5 acres). The City, currently has a revised agreement with the Mazzanti family to purchase 4.6 acres, at an established price, upon voter approval. Staff is, currently, in negotiation with California Water Service Company to acquire use of approximately 6.9 acres through lease, purchase, or a combination of both. California Water Service Company has agreed to make the land available for park expansion purposes with the following conditions: An easement must be granted for access to operate and maintain three (3) existing wells on the property. A maintenance road must be developed and maintained along with an easement given to service the wells. 3. Ali major underground and water lines must be relocated. 4. The use of chemical herbicides and fertilizers would be prohibited because of potential long impact to the water table. 5. If the property is secured through a long term lease, the construction of major buildings would be prohibited. It is felt that none of these restrictions would be prohibitive to the City's use of the property. Staff Report - December ' 1957 0Yange Memorial Park Expa..sion Page 2 The California Water Service Company has'expressed a preference for the City to purchase the property. At this time, they have agreed to continue to explore alternatives for acquisition to include outright purchase, long term lease, or a lease/purchase arrangement. Staff is also exploring various funding alternatives for acquiring the property. Staff recommends that the City retain an updated appraisal of the value of the property. The California Water Service Property i~ zoned Open,Space. The conceptual plan that was developed some months ago is included as attachment "B". The plan illustrates two major turf area divided by a maintenance road with support amenities such as parking, restrooms, a small childrens play area, and a family picnic area. The conceptual plan is intended to illustrate general spaces. If approved, specific uses and amenities can be refined through public input during the master plan phase. Staff has recommended three (3) alternatives for sizing of the bond issue as follows: Alternative ~l - Acquisition of 4.6 acres only Cost of Bond Issuance $ 1,875,000 lO0,000 $ 1,975,000 II. Alternative #2 - Acquisition of 4.6 acres Lease of Cal. Water Property (6.9 acres) Development of 11.5 acres Cost of Bond Issuance $ 3,195,000 100,000 $ 3,295,000 III. Alternative #3 Purchase and Development of Additional ll.5 acres Cost of Bond Issuance $ 4,900,000 100,000 $ 5,0oo,ooo Stone and Youngberg has prepared a scenario for each alternative that outlines the estimated annual assessment to the property owner, based upon market value of the property. For example, based upon an assessed valuation of SI10,000, the estimated annual tax rate to the property owner would be as follows: 20 Year Amortization 25 Year Amortization Alternative #1 ($1,975,000) $ 7.59 $ 7.15 Alternative #2 ($3,295,000) $12.54 $11.77 Alternative #3 ($5,000,000) $19.25 $17.93 Based upon an assessed valuation of SI10,000, any alternative could be achieved for less than a $20.00 per year assessment. Staff Report - December 9, 1987 Orange Memorial Park Expansion Page 3 Staff recommends three (3) potential dates for the bond election: l) April 12, 1988; 2) November, 1988; and 3) March, 1989. The following represents the pro's and con's of each date: Pro Con April 12, 1988 Single issue on ballot Special election costs Short time period November, 1988 More ti~e Presidential Election ConsQlidation of election March, 1989 Single ballot issue Special election cost 16 month delay in project The County has stated that requests for consolidation of the June, 1988 election date will not be accepted. Based upon public input at two (2) public hearings held within the past six (6) months, it is felt the April 12, 1988 date is feasible because: 1) the community has been aware of the potential expansion for many years, 2) there seems to be unilateral support for the project, and 3) park bonds, generally receive public support. On November 19, 1987 the Parks and Recreation Commission held a public hearing to generate more public input on the project. Approximately 15 residents attended and four (4) gave testimony. Of those who gave testimony, three strongly supported acquisition and development and one supported the inclusion of all park needs into a major bond issue. Aside from the fact that expansion of the issue could confuse the voter, the City does not have a master plan of total park and recreation needs. It would take months to properly develop a needs assessment and the time is not available. Forwarded for your review are: l) information from Stone and Youngberg regarding preliminary sizing and estimated tax rates for various scenarios, 2) the conceptual plan, 3) a project schedule based upon an April 12, 1988 election, and notes from public testimony at the November 19 public hearing. Staff requests direction on the following issues: l) the date of the special election, and 2) the scope of the issue. If the April 12, 1988 date is confirmed, the following documents must be agendized for action at your December 16, 1987 special City Council meeting: 1. Resolution Calling for Bond Election 2. Resolution Requesting Election Services from County 3. Resolution Calling for Special Election 4. 1st Reading of the Election Ordinance Staff Report - December 9, 1987 Orange Memorial Park Expansion Page 4 In addition to staff, Tom Lockard, the project Financial Advisor, will be present at the meeting to address any questions. Mark Lewis City Manager Director of Recreation and Community Services LWN/wdc DATE: TO: F ROM: RE: 8TONE &YOU:NGBERG MEMBERS: PACIFIC STOCK EXCHANGE MEMORANDUM OCT 2 8 :t987 October 27, 1987 Those persons on the attached Distribution List Tom Lockard, Stone & Youngberg Preliminary Sizing Estimated Tax Rates and Tentative Scheduling After meeting with the finance team again, I have adjusted the debt service scenarios for the proposed issuance of General Obligation Bonds. As you recall, the sizing of the issue is based on the acquisition cost of purchasing only land'or land and improvements, each including the fixed costs of issuance. Scenarios Scenarios I II III IV 20 years 25 years 20 years 25 years Land and Improvements Cost of Issuance Issue Size $3,195,0OO Land $1,875,OO0 lO0,OOO Cost of Issuance 100,OO0 $3,295,000 Issue Size $1,975,OOO A par purchase of Aa rated bonds in the current market was assumed for all scenarios. The coupons on the bonds reflect a premium structure that will produce between 1.5% and 1.7% for the underwriter. The annual debt service payments for both 20 and 25 year amortization periods are structured. approximately "level" The following table shows the estimated tax rate, five years into the future, based on assessed valuation information from San Mateo County. Fiscal Year Assessed Valuation (in thousands) Tax Rate ($ per $1OO) I II III IV Land/Imp. Land/Imp. Land Only Land Only 20 years 25 years 20 years 25 years 1987/88 1988/89 (2) 1989/90 (2) 1991/92 (2) $2,913,733 1.14¢ 1.07¢ 0.69¢ 0.65¢ 2,972,008' 1.11 1.05 0.68 0.63 3,O31,448 1.lO 1.04 0.66 0.63 3,153,918 1.O7 1.02 0.65 O.61 (1) County of San Mateo (2) 102% of prior year's assessed valuation I am also including revised estimated tax bills under each of the d i ffe re n t S ce nar i os. CENTRAL If you have questions or need any clarification, please cont~¢¢~ Amy 3ullien or myself. STONE & YOUNGBERG M£MBER$: PACIFIC S'[OCK EXCFtANC-E CITY OF SOUTH SAN FRANCISCO 1988 GENERAL OBLIGATION BONDS Distribution List Mark Lewis Deputy City Manager City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8500 Valerie Armento City Attorney City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8515 3eanne Goodrich City Librarian City of So. San Francisco 840 Nest Orange Avenue So. San Francisco, CA 94080 (415) 877-8521 Scott Sollers Tom Lockard Stone & Youngberg Suite 2800 One California Street San Francisco, CA 94111. (415) 981-1314 Paul Thimmig Bill Madison 3ones Hall Hill & White Suite 1950 Four Embarcadero Center San Francisco, CA 94111 (415) 391-5780 Lyle Norton Director, Recreation and Community Services City of So. San Francisco Municipal Services Building 33 Arroyo Drive P.O. Box ?ll So. San Francisco, CA 94080 (415) 877-8560 (06761) 10/27/87 Land Acquisition City of .South San Francisco Proposed General Obligation Bonds of 1988 Land Acquisition Estimated Tax Bill Based on the Current Market and FY 1988/89 Estimated Assessed Valuation For a Property Assessed at $35,OOO The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $2.41 $2.28 For a Property Assessed at $50,000 The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $3.45 $3.25 For a Property Assessed at $80,000 The Estimated Tax Bill would be III 20 Year Amortization $5.52 IV 25 Year Amortization $5.20 For a Property Assessed at $110,000 The Estimated Tax Bill would be III IV 20 Year Amortization 25 Year Amortization $7.59 $7.15 For a Property Assessed at $140,OOO The Estimated Tax B~ll w~uld be III IV 20 Year Amortization 25 Year Amortization $9.66 $9.10 The estimated annual tax bill per $1,000 of assessed valuation is 6.9¢ for a 20 year amortization and 6.5¢ for a 25 year amortization. (09801) Land Acquisition and Improvements City Of South San Francisco Proposed General Obligation Bonds of 1988 Land Acquisition and Improvements Estimated Tax Bill Based on the Current Market and FY 1988/89 Estimated Assessed Valuation For a Property Assessed at $35,O00 The Estimated Tax Bill would be I I'I 20 Year Amortization 25 Year Amortization $3.99 $3.75 For a Property Assessed at S50,OO0 The Estimated Tax Bill would be 20 Year Amortization 25 Year Amortization $5.70 $5.35 For a Property Assessed at $80,OOO The Estimated Tax Bill would be ! II 20 Year Amortization 25 Year Amortization $9.12 $8.56 For a Property Assessed at S110,OOO The Estimated Tax Bill would be I II 20 Year Amortization 25 Year Amortization $12.54 $11.77 For a Property Assessed at $140,OOO The Estimated Tax Bill would be I II 20 Year Amortization 25 Year Amortization $15.96 $14.98 The estimated annual tax bill per $1,000 of assessed valuation is 11.4¢ for a 20 year amortization and 10.7¢ for a'25 year amortization. 8TONE & YOUNGBERG M[MB£R$: PACIFIC STOCK [XCHA~Gr Date: TO: FROH: RE: H E H O R A N D U H November 11, 1987 Those persons"on the attached Distribution List Tom Lockard, Stone E Youngberg Preliminary Sizing and Estimated Tax Rates As requested, we have structured a $5,O00,OOO general bbligation issue using 20 and 25 year amortization terms. scenarios' Land'and I~rovements Cost of Issuance Issue Size He have:assumed in both amortization $4,900,000 100,OOO $5,000,000 As with our previous scenarios, the coupons reflect a premium structure designed to produce.l.5% to 1.7% for the underwriter and is based upon a par purchase of Aa rated bonds in today's market. "Level" annual debt service payments are given for both amortization terms. The following table shows the estimated tax rate for the next five years based on assessed valuation information from San Mateo County. Fiscal Year Assessed Valuation (in thousands) Tax Rate (S per $t00) 20 year 25 year 1987/88 (1) $2,913,733 --- 1988/89 (2) 2,972,008 1.75¢ 1.63¢ 1989/90 (2) 3,031,448 1.72 1.62 1990/91 (2) 3,092,077 1.69 1.58 1991/92 (2) 3,153,918 1.~5 1.54 (1) County of San Mateo (2) 102% of prior year's assessed valuation You will also find enclosed estimated tax bills corresponding to a $5,O00,OOO issue. If you have any questions while reviewing this information, please feel free to call me or Amy Sullien. (09961) ~tLE NO,~ .. _.<--~o 2.-- STONE Ss .Y. OUNGBERG I~.[MB[R$: PACIFIC SIOCK [XCHANG[ CITY OF SOUTH SAN FRANCISCO 1988 GENERAL.OBLIGATION BONDS Distribution List Mark Lewis Deputy City Manager City of So. San Francisco 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8500. Valerie Armento City Attorney City of So. San Francisco' 400 Grand Avenue So. San Francisco, CA 94080 (415) 877-8515 3eanne Goodrich City Librarian City of So. San Francisco 840 Nest Orange Avenue So. San Francisco, CA 94080 (415) 877-8521 Scott Sollers Tom Lockard Stone & Youngberg Suite 2800 One California Street San Francisco, CA 941!~:. (415) 981-1314 Paul Thimmig Bill Madison 3ones Hall Hill & White Suite t950 Four Embarcadero Center San Francisco, CA 94111 (415) 391-5780 Lyle Norton Director, Recreation and Community Services Alex Tsitovich City of So. San Francisco Muni'cipal. Services Building 33 Arroyo Drive P.O. Box ?ll So. San Francisco, CA 94080 (415) 877-8560 (06761/06801) 11/11/87 $5,ooo,ooo City of Sou~h San Francisco Proposed General Obligation Bonds of 1988 Estimated Tax Bill Based on the Current Market and FY 1988/89 Estimated Assessed Valuation For a Property Assessed at $35,000 The Estimated Tax. Bill would be 20 Year Amortization $6.13 25 Year Amortization $5.71 For a Property Assessed at $50,000 The Estimated Tax Bill would be 20 Year Amortization $8.75 FOr a Property Assessed at $80,000 The Estimated Tax Bill would be 20 Year Amortization $14.00 For a Property Assessed at SllO,OOO The Estimated Tax Bill would be 20 Year Amortization $19.25 25 Year AmOrtization $8.15 25 Year Amortization $13.04 25 Year Amortization $17.93 For a Property Assessed at S140,OOO The Estimated Tax Bill would be 20 Year Amortization $24.50 25 Year Amortization $22.82 The estimated annual tax bill per $1,000 of assessed valuation is 17.5¢ for a 20 year amortization and 16.3¢ for a 25 year amortization. (09961) ORANGE PARK EXPANSION crrY '0~= SO~l'~ $,~ J=~Cl,i~O. C~u~FO~ SINGER & HODGES, Inc, : :~" ."L '" PREL]rlq]HA,~Y T;IHEI'ABLE · OL.,,,:GE PARK EXPAIlS~ION BOItD CAIqPA, , October 29 November 19 Early December December 9 December 9 - January 1988 January 8 January 13 January - February January I - 15 January 15 January 15 - 31 January 25 February 4 February 1 - 28 February 14 Park and Recrea~!.on Commission - Project Update/Set Public Hearing '" Park and Recreation Commission - Public Hearing Commission Endorsement Council Work Session/Determine Scope of Issue City council - a. Resolution Calling for Bonds Election b. Resolutions Requesting Election Services from c. Resolutions calling for Special Election d. Election Ordinance (lst Reading) Recruit Campaign Coordinator/Committee Voter Analysis/Devil's Advocate Questions Prepare and Print Fact Sheet Campaign Coordinator/Committee Announced 2nd Reading of Ordinance '. Resolution authorizing City Attorney to prepare Measu'~.e Analysis Develop Campaign Slogan Develop Speaker's':Bureau/Call to Schedule in August- September/Prepare Display Boards'& Slide Shows Schedule Fundraisers Prepare Letters for Leaders of Support Groups Secure Endorsements Identify and Contact Absentee Vote Secure Endorsements Telephone Survey? Fundraiser Arguments OPen Deliver gesolutions Schedule ~peakers Prepare and Print Brochure Deadline for Arguments/Call for Rebuttals Analysis of Measure due to City Clerk Close of Rebuttals/ l0 Day Public Examination Schedule Speakers Fundraiser Close of Public Examination l-Ia rch ~988 April II April 12 Endorsement £ards Pyramid Telephofle Calls/Remind "Yes" ~ote Schedule Speakers Distribution of' Brochures by Support Groups Endorsement Cards Election NOTES: NOVEMBER 19, 1987 PUBLIC HEARING PARK AND RECREATION COMMISSION Public Hearing Opened: 7:45 p.m. 1. Jim Keegan Universal agreement - buy Mazzanti and do whatever California Water. Should address buy and development. If you don't buy and develop you get fallow land. Don't be afraid. Mr. Keegan feels we can get 2/3 vote because it is Recreation Issue and He would be very willing to participate. 2. Andy Rodondi Agree with Keegan, but include 3 acres of new Conp and Park Yard relocation. 3. A1 Waters - Westborough Concern Citizens Hesitant to support Bond to develop all parks. San Mateo did it. Do not want to support unless Westborough gets some money. Said only if it helps ALL parks 4. Carol Meza Lives in Brentwood - go for Orange.Memorial Park wholeheartedly - permanent snack bar, stands (portable). Public Hearing Closed: 8:30 p.m. Office of the County Cle~__-Recorder WARREN SLOCUM COUNTY CLERK-RECORDER COUNTY OF sAN MA.T .O ELECTION DIVISION MAUREEN GROVER CHIEF DEPUTY MUNICIPAL ELECTION TUESDAY, APRIL 12, 1988 TO THE POLLING PLACE OWNER ADDRESSED: We are at this time in the process of arranging for polling places needed for the forthcoming Municipal Elections to be held on Tuesday, April 12, 1988. We hope that you will continue to provide polling place facilities as in the past. While Municipal Elections are conducted under the jurisdiction of the City Clerk, we are providing specific clerical services pursuant to a Services Agreement between the City and the County. Polling places normally should be at ground level and easily accessible to facilitate delivery and installation of voting machines. Electrical outlets are necessary for the operation of the voting machines. Should any questions arise as to polling place requirements, please contact our Registration-Election Office. If you are agreeable to providing a polling place for the April 12th Municipal Election, please complete and return the original copy of the enclosed Agreement, retaining the duplicate copy for your records. Please indicate on the Agreement form who to contact or where the key will be available to gain entry with voting machines or equipment which will be delivered and installed a few days before the election. If for some reason you are unable to provide the polling place as requested, please indicate on the original copy of the Agreement and return it to our Registration- Election Office. Your cooperation is greatly appreciated. WS:sc Enclosures (Public Bldgs. 1/88) Since.rely, ~ Warren Slocum County Clerk-Recorder COUNTY OF SAN MATEO O, ~CE OF THE COUNTY CLERK-RECORDL 40 TOWER ROAD SAN MATEO, CALIFORNIA 94402 POLLING PLACE AGREEMENT MUNICIPAL ELECTION TUESDAY, APRIL 12, 1988 573-2081 I agree to furnish the polling place specified above for the Municipal Election to be held on Tuesday, April 12, 1988. If you supply the polling place but cannot furnish chairs and tables (items 3 & 4) please so indicate. It is important that we know beforehand so that proper delivery can be planned Please Answer 1. Is a grounded 110 volt electrical outlet available for Voting Machines? ..... 2. Is proper light available? .................................................. 3. I will furnish four (4) chairs for the Election Officers .................... YES or NO / 4. I will furnish one (1) strong table (approximately 3' X 5') ................. 5. Is phone available, if needed? .............................................. __ IT IS IMPORTANT THAT WE HAVE THIS NUMBER.- POLLING PLACE PHONE NO. ES ....... ~" "~' ~" 6. Is polling place accessible to handicapped persons? ......................... ~". 7. Entrance may be gained for delivery of voting machines by contacting: 8. Are there special instructions for Precinct Board entry on Election )ay? (Board members are required to report at 6:15 A.M.) ,.. NOTE: machines as scheduled. DATED: Due to number of deliveries and limited time involved, please accept delivery of ...... · , SIGNED: / TELEPHONE NO.: " ' ' ' ADDRESS'" ' / " ' ~ CITY: '""" When completed please retain DUPLICATE COPY of Agreement and return the ORIGINAL COP to our office in enclosed return envelope. PLEASE RETURN AGREEMENT WITHIN tO.DAYS AS TIME IS OF THE ESSENCE. NOTE: 1/88 INTER-OFFICE MEMORANDUM )ate: October 21, 1987 To: Subject: Honorable City Council CC: Election Timetable for a 4/12/88 Special Municipal Election City Manager City Attorney Dir. of Rec. & Comm. Dev. From: City Clerk The following schedule will apply for the above mentioned election. Council Election Days Before Date Meeting Action To Be Taken 4/12/88 120-109 12/14/87-1/6/88 12/9/87 Council adopts a Resolution calling a Special Election with measure(s) set forth in the exact wording that will appear on the ballot, and adoption of a Resolution requesting services from the CountY Clerk. (Please note that there will not be a County election with which to consolidate.) 4/12/88 88 1/15/88 N/A Last day to deliver to Board of Supervisors the Resolutions calling the election and requesting services. 4/12/88 88 1/15/88 N/A Arguments Open 4/12/88 78 1/25/88 N/A Close of Arguments. Analysis of Measure(s) Needed By City Clerk. 4/12/88 78 1/25/88 N/A 4/12/88 68 2/4/88 N/A 4/12/88 68 2/4/88 N/A Rebuttals Open. Close of Rebuttals. Beginning of Ten Day Public Examination. 4/12/88 58 2/14/88 N/A Close of Public Examination A projection is purposely not being given for a 6/7/88 election in that the County will not allow consolidation with the Primary Election. Barbara A. Battaya CENTRAL RECORD.~i DATE: T'(): .";UBJ ECT: FRO~I: CITY OF SOUTH SAN FRANCiY"'O October 23, 1987 " City Manager for City CouncJl Information '8'/ ~1' 28 P3:59 OFFisL Oranc3e MemorJ a'l Park Expansion Project CITY SO. SAN "" Director of Recreation and Community Services Forwarded is a suggested timetable for putting a Bond Measure on a Special Election ballot on April 12, )988. The Park and Recreation Commission has scheduled a Public Hearing on November 19. -Recommendations from the Commission will be fom~arded to the City Council prior to the work session, planned in early December. Jones, Hall, Hill and White, our Bond Counsel, will prepare the necessary materials for'City Council action on Dec~ber 9. An updated project staff roster:is also forwarded. : Director of Recreation and Community Services LWN/wdc bc: City Manager Assistant to City Manager City Attorney City Librarian Recreation Services 'Manager Tom Lockard, Financial Advisor Bill Madison, Bond Counsel ~gNTP. AL RF_CORD~ No., _~ ~/~'z~ PRELIMINARY TII~,ETABLE " : £ NGE PARK EXPAI'ISION BOND CAMPA. .; October 29 ~ November 19 Early December December 9 December 9 - January 1988 January 8 January 13 January - February January 1 - 15 January 15 January 15 - 31 January 25 February 4 February 1 - 28 February 14 Park and R~c?'eati. on Commission - Project Update/Set Public Hearing ., Park and Recreation Commission - Public Hearing Commission Endorsement ~J Council Work Session/Determine Scope of Issue City Council - a. Resolution Calling for Bonds Election b. Resolutions Requesting Election Services from c. Resolutions calling for Special Election d. Election Ordinance (lst Reading) Recruit Campaign Coordin. ator/Committee Voter AnalysisZDevil's Advocate Questions Prepare and Print Fact Sheet Campaign Coordinator/Committee Announced 2nd Reading of Ordinance Resolution authorizing City Attorney to prepare Measune Analysis Develop Campaign Slogan Develop Speaker's Bureau/Call to Schedule in August- September/Prepare Display Boards'& Slide Shows Schedule Fundraisers Prepare Letters for Leaders of Support Groups Secure Endorsements Identify and Contact Absentee Vote Secure Endorsements Telephone Survey? Fundraiser Arguments Open Deliver Resolutions Schedule ~peakers Prepare and Print Brochure Deadline for Arguments/Call for Rebuttals Analysis of Measure due to City Clerk Close of Rebuttals/ lO Day Public Examination Schedule Speakers Fundraiser Close of Public Examination lqarch 1988 Apri 1 ll April 12 Endorsement Cards Pyramid Telephone Calls/Remind .'.'Yes" Vote Schedule Speakers Distribution of Brochures by Support Groups Endorsement Cards Election CENTRAL RECORI~:~ ~L~ No... ~'~" ,~'"~ ~ .. ORAI,~GE PARK EXPAI~S IOI'~ lqark Lewis City lqanager P.O. Box 711 South San Francisco, 877-8500 CA 94083 Elayna lqcCarty Assistant to City 877-8500' Hanager Valerie Armento City Attorney 877-8515 Jeanne Goodrich City t. ibrarian 877-8521 Lyle W. Norton Director of Recreation 877-8560 & Cor~nunity Services Alex Tsitovich Recreation Services Manager 877-8560 Tom Lockard, Financial Advisor Stone and Youngberg One California Street San Francisco, CA 94111 98t-1314 Bill Hadison, Bond Counsel Jones, Hall, Hill and g~hite Four Embarcadero Center Suite ] 950 San Francisco, CA 94111 391-5780. Land sales may finance Orange Park expansion Plans to sell off not one, but two parcels of city-owned land to finance Orange Memorial Park expansion and other capital improvements have been tenta- tively approved by the South San Francisco City Council. At Wednesday night's meeting, the council endorsed City Man- ager Mark Lewis' proposal to sell the two parcels, invest the pro- ceeds, then use accrued intere.st as the primary source of capital improVement funding. The properties in question are the 5.3-acre site on the northwest corner of Chestnut and Grand avenues, and a 6-acre Oyster Point Boulevard site acquired several years ago from the federal Gen- eral Services Administration. The Chestnut-Grand site is expected to sell for significantly more than the $1.3 million the city has set as a minimum bid price, while the former GSA site is valued at more than $4 million. The council approved Lewis' plan to finance park expansion using interest income from the Chestnut-Grand sale, estimated at $120,000 annually, and another $130,000 in interest accruing on the city's $1.3 million catastrophic reserve fund. .The combined $250,000 in annual ,,,,.~t cou~u ue applied to the $1,877,500 purchase of the 4.6-acre Mazzanti & Sons Nursery immediately north of the park, The plan requires changing the city's present agreement to lengthen the payment period to eight years from the current six years. It remains uncertain how soon the city could take control of the land, although several council members suggested it could be in as little as three years. The new park proposal follows last month's cancellation of a spe- cial election seeking voter approval of $5 million in bonds to buy and develop not only the nur- · sery but 6.9 acres of adjacent Cali- fornia Water Service Co. property. Lewis later described his plan as "a kind of trust fund" that assures the city of a stable, long-term source of funding for capital improvements. He said he expects the GSA site to be sold within the next year, thereby generating even more interest income. "It wa.s acquired as an asset and to help in the development of that area," Lewis said of why the land was acquired, "but it has always been the council's intent to sell it at some time." ,City Council calls April park bond vote Overcoming the doubts expressed by one of its members, the City Council Wednesday pushed ahead with a plan to enlarge Orange Memorial Park through the sale of $5 million in municipal bonds. The council unanimously agreed to seek voter approVal of the bond issue in a special April 12 election. However, the show of unity came about only after Coun- cilman Mark Addiego was assured that the scope and cost of Park expansion could be cut back. Addiego said he supported a smaller bond issue for more limited park expansion. He went along With the larger scheme after being advised that the city need not sell the full $5 million if prob- lems arise. The plan calls for the enlarging the park, already the city's big- gest and most heavily 'used, through purchase of the 4.6-acre Mazzanti & Sons Nursery for $1,- 875,000 and 6.9 acres of adjacent California Water Service Co. land for $1,503,000. Development of turf areas, sports fields (one lighted for adult softball), a snackbar and rest- 'rooms, play equipment and seCurity lighting is estimated at $1,~ 383,000. Architectural services and the costs of selling the bonds bring the total price rage for the expansion t° $4,921,000. Depending on whether the bonds are repaid over 20 or 25 years, voter approval would mean an annual tax levy of either 17.5 cents or 16.3 cents, respectively/ for each $1,000 of assessed valua- tion. On property assessed at $100,000, for instance, the yearly tax would be either $17.50 or $16.30, depending on the amorti- zation schedule. Addiego had been absent Dec. 15 when the council took the first step in calling the election. His comments touched off a testy exchange with Councilman Rick Haffey, who said the success of the bond issue was being under- mined. "I'm concerned that we're play- ing a little fast and loose as to the amount,,' Addiego said, adding that he could fully support only the acquisition of the Mazzanti property. While acquisition of the nursery land, which the Mazzantis plan to sell, is urgent, the water district land is not, he said. "1 think that property is safe," Addiego explained in suggesting that the Water district acquisition be dropped. If that were done, he said the council would not "have to be afraid of loading up on the bond issue." Haffey said he was disappointed that Addiego Waited until the 11th hour to voice his concerns, thereby casting doubt on the endeavor. "This is precisely the kind of discussion that will defeat a bond measure," he said, warning that DELIVERY: Messages about delive~ should be phoned in to 266-9660 between 9 &m. anti 5;30 p.m. or sent council unity was critical tc~ con- vincing the voters of the worth of the plan. SSF council calls off April vote The South San Francisco City Council Wednesday officially called off a special election on whether municipal bonds should be sold to finance expansion of Orange Memorial Park. The council voted 4-1 to adopt a resolution and an ordinance that cancel the April 12 vote. The lone dissenter was Councilman Rick Haffey, who said his vote was meant to be symbolic. "1 still believe we could have gone forward with it and won," Haffey later explained. The action followed a discussion last week in which council mem- bers Mark Addiego and Roberta Teglia withdrew their support for the $5 million bond issue and urged that the election be called off. Haffey, Mayor Jack Drago and Councilman Gus Nicolopulos said it was impossible to go forward without a unanimous council. The bonds would have financed acquistions of the 4.6-acre Maz- zanti & Sons Nursery and 6.9 acres of adjacent California Water Ser- vice Co. land, and provided for development of sports fields, a snack bar and restrooms and other amenities. Property owners would have been taxed annually at a rate of about 19.7 cents per $1,000 of assessed property value, or about $19.70 for a home valued at $100,000. At the same meeting in which the park election was cancelled, the council tentatively approved a five-year, $6 million capital improvement plan for the sewage treatment plant (See story). It will mean a cumulative 97 percent increase in the sewer service charges and will raise the rate for homeowners from $69 to $136. While council members claimed to have been previously unaware of the sewage plant plan, some suggested that voters, put off by the jump in sewer charges, would have refused to bear the addi- tional costs of the park bonds. City pulls park bond off ballot -i By DON SHOECP. AFr Staff Writer SOUTH SAN FRANCISCO -- Lack of time and organization has led South San Francisco City Council members to reverse themselves and pull off the April 5 ballot a $5 million bond measure/or the expansion of the 1 l-acre Orange Avenue Park. By the accounts of those in- volved, the most fundamental actions needed to put together an affirmative campaign never came together. A decisive moment apparently came last week when two coun- cfi members committed to a phone bank operation, one committed to one night on the phones and two did not respond. That put in doubt the outcome o/what was to have been a big constituency meeting on Feb. 20 which was to have generated three campaign committees and commitments for campaign workers. 6 7 PARK From Page A3 Expansion plan in new phase plete master planning process for the park.' That way, she said, the city could come back to voters with a possibly smaller bond measure in" the future for money to hn- prove and develop the entire Orange Avenue-Park, Lucluding the new piece. Negotiations could be 'kept open 'with the California Water Service for eventual acquisition oflitS property, but the urgency is not the same between the Maz- zanti parcel and the' 'water com- pany parcel. -The greenhouse carnation- gorwing operation the Mazzantis have run on their family land for generations is moving either to colma or Half Moon Bay within It would have taken a two- thirds majority vote to pass the bond sale. Though no organized opposi- tion had emerged, council members were wary that a tax- lng issue such as Measure A, as it was rifled, could have lost on little more than a conservative vote opposed to tax increases in general. Though 60 percent of the reve- nue would have come from commercial and industrial pro- perties, property taxes would risen an average of a nickel a day to finance the park expansion. Council Member Mark Ad- diego said he had doubts about depending on the outcome of the Feb. 20 community meeting to get the measure passed. "You have your meeting on Feb. 20 and 61 days after that people are going to the polls. It just is not fair to expect the elec- rotate to gear up and get excited about it." Council Member Roberta Teglia said there were "pockets o/enthusiasm" for the bond, but there was inertia, as well "You can still get 62 percent of the vote and lose it," she said. That was exactly the experi- ence in the city's last bond measure, a 1974 $5 million issue to finance a public safety com- plex. Mayor Jack Drago said the comparison with the 1974 issue failed to apply. "(Former Council Member) Ron Acosta ran a negative cam- paign against it and there were a Though the bond appe~ dead, orange Park expa~sio~ ~ appears only to be entering new phase. A deal has been reached the Mazzanti family and outlines of an agreement ha~ been reached with the Califo~ Water Service company assemble two roughly eqUa~ sized parcels of land from eaCH fOr an ll-acre expansion o~ the western fz~ge of the existing 60 year-old park. Teglta favors selling the five~ acres of land the city owns Chestnut and Grand'avenueg,', lot of city fireflghters out cam- paigning door-to-door it,"he said. buying at least the Mazzan~' against parcel and undertaking a com~!~: See Park, Page A9 '~ the next several years.' The water company property is zoned for open space and the company specifically intends to keep in operation three water wells on the site regardless of who owns it.. "Because o/the restrictions on the {Ca] Water) property," Ad- diego said, "it's doubtful it could be,developed. ;Its hi,est and best use might just' _be recreation because of the open space zoning, the wells on the property and the property owner'~s stipula!ion that onl organic and'no Chemical lzers be used because of the presence ot the water supply." Chestnut and Grand sale pro- ceeds tha~..way unless it is prov- ed that the city has enough money in the bank./or emergen- des.~ "If I remember Hght,"he said, "this property is considered part o~ the reserve. "I really have to know what our city financial picture is and what we h~vein reserve.be/ore vote/or anything that says $1.5 million or so goes to purchase the land. "My idea is to put that in the bank and buy long-term certifi- cates, CD's or whatever and draw interest on it. I have no objection about using the interest for property acquisition." The city purchased the Chestnut and Grand properU for a civic center, but a lawsuit by resident and former council member Ron Acosta effectively killed the project The latest potential buyer was the Coun~ of San Mateo, .which wanted t~ use'it for affordable fsmtly housing. The cou~.ty dropped the plan when Soutla.Clty declined to g~ve the density bonuses and higher around site. densities it reqnired to make the. "I'd like to see that in sin:~e project work fsm!!y housing," he said. An appraisal done during The council meets tonight those negottaflon~ put the ~mlue of'the $ ,~mmt acr~ at approat- p.m. ha the ~wage treatnl~t plant to ~onslder the re~olutl~ matel~ $1.* mtllion. · ' n?t~sat, y to rancel the April, s Addi~o noted that ~ubetanflal el~"tion mad to debate hou~in~ construction ts goin~ o.n go from here. Vol. 92, No. 13 A SAN MATEO TIMES GROUP NEWSPAPER ~aturday, February13,1966 Surprise council move axes April park bond vote expires June 30. Further negotia- tions will be necessary to extend the agreement. The election Was scuttled less By DAVE MADDEN than one month after it was offi- week. additional land would have "S u r p r i s e d ? M o r e I i k ·. enlarged the 21-acre park by more stunned,/' said :lake :jones, chair- than 50 percent. man of the city's Parks and The bonds also would have Recreation Commission, who had financed more than $1 million worth of improvements, including cially called by the council and turf areas, sports fields (one iust a week after council mere- lighted for night use) and a snack bets put their signatures to .a bal- bar and restrooms. : lot argUment touting the bonds Of the two parcels to be as the only means of financing' acquired, the nursery is corisid- park expansion. ered the more critical because the ' However, council members ¢ity:s purchase agreement with Mark Addiego and Roberta Teg- owners Peter and Eries Mazzanti lia said they were withdrawing Doubts and misgivings aired by two City Council members Wednesday night helped kill a plan to seek voter approval of $5 expected to be heavily involved million'in municipal bonds for in what would have been known Orange Memorial Park expansion, as the Measure A campaign. In a move that took some by The council action put on hold complete surprise, the cc~uncil the acquisition of the 4.6-acre agreed to call off a special April Mazzanti & Sons Nursery, for $1,- 12 election on the bond issue.. 875,000, and 6.9 acres of adjacent Formal action to cancel the vote California Water.Service Co. prop- is expected at a meeting next _erty for aboUt $1.5 million. The_ their support out of concern that the measure would fail to achieve the necessary two-thirds voter approval. Mayor Jack Drago and Coun- cilmen Rick Haffey and Gus Nico- Iopulos said it would be impossi- ble to move ahead with measure without a unanimous council. Haffey was particularly perturbed. "We all signed the ballot argu- ment in support of it. We all agreed to work hard for its pas- sage. It's too bad we don't have the will to follow through," said - Haffey. "The city has been made to look somewhat foolish by what has occurred," he later said. Drago said he was disturbed by the turn of events. "1 still believe it could be won, but not if the council can't be 5-0 in favor of it," he said. "1 had known where (Addiego) was coming from, but I really had no suspicion of (Teglia's) doubts until just before the meeting," he said. Addiego previously expressed uneasiness over the short time frame in which to mount a cam- paign on behalf of the ballot mea- sure, and questioned whether the expansion plan was too vagUe to win vote~ support. He went along with the election after being assured that the size of the bond and scope of expansion could be reduced. "We just don't have the time to ltpeople fully behind thjs,~' said diego, Who noted ~ha{ San MateC~rei:ent' passage of park bonds followed ~1 well-organized and lengthy campaign. Were the bond. to be defeated, even by only a small margin, It could be seen as "advice to the council that the public does not want to expand the park," he said. After thinking "long and hard:' about the matter this past weel~, Teglia said she had come to same conclusions Addiego had. "What I thought was passable in December seemed less pass- - able in January. Now we're into February and time is just running out," she said. "A lot of the things that should have been done have not been done. We set an election date, but we didn't capture the time, we haven't made use of it." While the entire council agreed that achieving two-thirds voter approval was inherently more dif- ficult than a simple majority, council members differed over whether community opposition existed. "1, personnally, didn't get.a sense of any opposition. My sense was that maybe people weren/t as enthusiastic as we may have hoped for, but they were gen-' erally supportive of expanding the park," Nicolopulos later obsen~ed. Haffey said he could have understood cancelling the elec- tion "if you could see opposition building, but I didn't See that." However, Teglia said her "soundings" of the community gave her cause for concern. "There were some people who thought we.were doing too much, SOme 'who' thought we were not going far enough," she.explained. People were not all that thrilled with f~is." ' ' City has other options While municipal bonds had been described as the only means of financing Orange Memorial Park expansion, the City CoUncil may have other options, including sale of city-owned land at Chest- nut and Grand avenues. During Wednesday night's dis- cussion, Councilwoman Roberta ;l'eglia suggested using some of the proceeds of such a sale to carry through the city's purchase of the 4.6-acre Mazzanti & Sons Nursery. Te§lia said it was "conceivable that the city could make a deal by April" to sell the Chestnut and Grand property. An initial pay- ment couldbe made to the nur- sery owners Peter and Enes Maz- zanti with the rest of the proceedings earmarked for reserves or other purposes, she said. The suggestion raised eyebrows among feUow council members, who noted that income from the sale had long been looked upon to replenish reserves and for other capital improvements. "A number of things are hap- pening quite quickly tonight," said Councilman Rick Haffey, adding that he appreciated "imag- inative thinking" but wondered whether such a major policy change deserved more thought. Mayor Jack Drago said he would need some convincing that income from the sale would not be best used in bolstering reserves. "1, for one, have not changed my mind about that," Dra§o said Thursday."l'd certainly have to look pretty closely at our financial position before going anywhere near that." TheS.4-acre parcel at Grand and Chestnut was purchased by the city more than 15 years ago. It was 'the proposed site of a new public safety facility, a Plan that fell through when another bond mea- sure was rejected by the voters in 1974. The city declared the land sur- plus last year and, by law, first offered it to governmental enti- ties, schools and 'non-profit agen- cies. San Mateo COunty was interested and the county's Hous- ing and Community Development Department entered into negotia- tions to acquire the site for a sub- sidized, moderate'incOm~ town- house project. However, the county wanted the land rezoned to increase the number of homes that could be built there. By consensus, the council hadi~ it would not allow such lin:i-eased density and the talks officially ended last week when the county withdrawing its proposal. The land was recently appraised in value at about $1.18 million, but could be worth more in today's real estate market, particularly with mortgage interest rates on the decline. Under the current single-family zoning of 10 units per acres, about 35 homes could be built. IDave Madden The Progress, Wednesday, February 10, 1988 PAGE AS .,,~: Park bond-backers press for majority By DON SHOECRAFT .... Staff Writer SOUTH SAN FRANCISCO -- The City Council backers of Measure A, a $5 million bond issue to expand Orange Avenue Parl~ '. have Set What~ riley hope will be a big community meeting Saturday, Feb, 20 to begin set- ting up the campaign organiza, tion needed to pass. the measure in April. The big push partly reflects the take-no-chances approach the ci- ty is taking. No official opposition has emerged and is not expected to surface; however, general obliga- tionbond issues require a hefty twO'tbirds majority approval of all' th0~e casting VOte~ and no such measure has succeeded here in more than 20 years. The last attempt was in 1974, was overwhelmingly endorsed by civic'ieaders and fell a few points short of the 66 and two- thirds percent of the vote it needed. ,I think any bond measure should no.t be taken for granted because you're asking people to spend money.' to;et it out to the polls April 5. five members of the City Council have signed the argu- ment in favor of Measure A. Council Member Richard Hal- fey drafted the wording, and the council adopted it last week. The nffirmative argument is less than 300 words long and carries only one sentence in italic type: "Remember indus- trial and commercial properties will pay 60 percent of the bill for this community amenity." The council makes much of the fact that Orange MemOrial Park has been 11.5 acres in size since it was dedicated in 1925. South San Francisco's popula- That bond was a proposed $4.5 million issue to fund construc- tion of a new public safety com- plex housing police and fire departments. The city eventually took Over a former supermarket building a.t El Camino Real and Arroyo Road and converted it into the Municipal Services Building. That is the location of the organizational meeting Feb. 20. Mayor Jack Drago said the council feels ithas to work hard not to let this one get away, and hopes to rouse the volunteers and workers needed to identify a vote for the park expansion and tion has multiplied by 10 times in the same time span. The bond measure would gen- erate the funds to purchase the agricultural lands of the Maz- zanti family and of the California Water Service company, doubl- ing its size, and would pay to de- velop the new lands for turf, parking, lighted ballflelds, children's play areas and restrOom/snack shop facilities. The affirmative argument points out that the cost to the "average South San Francisco fnmtly" is a nickel a day for the bonds. Accor&ing to City Attorney vale_rte Armento_'s ballot _analy- sis, the projected cost on the tax ~olls would be 17.5 cents per year per thousand dollars of assessed value ff the bonds are sold as 20-year bonds, or 1.63 cents per thousand per year t~ they are_sold as 25-year bonds. ACCOrding to her analysis, the bond 'interest rate is likely to fall between 6 percent and 8 per- cent, well within the 12 percent mn=trnum set bylaw. Though all five members of the council expect to attend the Feb. 20 community meeting, it will not be an official convened meeting of the council. Council Member Roberta Teglia indicated the structure of the campaign, organization the council hopes to come out of it. "First is' an honorary commit- tee composed of past and cur- rent elected officials to lend their names to it. "The second part is a steering committee with chairmen and co-chairmen from the elements we want a liaison with -- baseball groups, the soccer groups, the users, service clubs, every element we can identify with some participation. "The third is the real work committee." Teglia, whO just came througli a $16,000 fundraising effort fo~ her November, 1987 re-election campaign, said Measure A will require at least a $10,000 war- chest. "I think any bond measure should not be taken for granted," she said, "because~ you~e asking people to spen~ money I think this iR really very good deal for the people of~~. South San Frandsco, espedall~ because whatever we do the_ business, commercial and in:~ dustrial community is going t0:~'~ be paying 60 percent of the bill. ,'That's a very good deal for the citizens.", Saturday, February 6,.1988 SSF park bond ready for ballot By DAVE ~DDEN The South San Francisco City Council's argument in support of a $5 milllon municipal bond issue for park expansion will appear' alone .on the ballOt presented to voters, in.,~a special April 12 elec- tion. ~ The 5 p.m. Thursday deadline for submitting arguments for and against the bond measure passed without the filing of a statement of opposition, City Clerk Barbara Battaya said Friday. Opponents, if any, could still have their views included on the ballot by submitting a rebuttal to the council argument, she said. The deadline for rebuttals is Feb. "I'm' pleased, of course, ~t not really surprised," Mayor Jack Drago saidFriday of the appar- ent lack of organized opposition. '1 think most people consider this a worthwhile venture. The big thing now is gettingthe facts out, then making sure that the people who support it get to the p~41~' s on April 12," he added. The argument in support of the ballot measure was finalized by the council at a special meeting Wednesday night. The statement stresses the need to enlarge 'Orange Memorial Park to meet an ever-increasing demand fOr recreational services. It als°. cgn- tends that the property tax levled to repay the bonds is miniscule when compared to the costs of other recreational pursuits. The bonds, which need two- thirds voters approval, would finance acquisition and develop- ment of 11.5 acres of land imme- diately north of what is already the city's largest and most heav- ily used park. Two properties, the 4:6-acre Mazzanti & Sons Nursery and 6.9 acres of California Water Se~ Co. land, would by bought by't~ city fo[ $1,875,000 and $1.5' m{~- lion, r~pectively. Developing'th~u added acreage is expected to cost another $1.5 million. Baseball, softball and soccer fields (including one lighted for 'night use),bleachers, children's. playground equipment, a snack shack/restroom building, and" other improvements are envi- sioned. Depending on whether the bonds are repaid over 20 or 25 ears, the annual tax levy would e either 17.5 or 16.3 cents per $1,000 of assessed property value. The levy on a home valued at $100,000, by example, would be either $17.50 or $16.30, depending on the amortization period. T~ council's argument son- ten~S that the average f~i~llily would pay only'a ~niL'4tb/~'~ for the expansion. Such a cost-is 'a true bargain compared to other recreational activities, such as going to a movie or a day at the '. ' The statement also notes that up to 70 percent of the cost of expansion will be borne by the owners of industrial and commer- cial properties. In addition to fine-tuning the ballot argument drafted by Coun- cilman Rick Haffey, the council also agreed to a broad campaign strategy that would involve vari- ous community groups and orga- nizations. The council would serve as an executive committee, over-. seeing the actual work by citizens committees. One such working group, a finance committee headed by Allan Zelmer, Bay View Savings manager and president of the Downtown Merchants Associa- tion, already is at work with a goal of raising $10,000. Other community leaders also will be tapped for help and a gen- eral organizational meeting is planned for 10 a.m. Feb. 20 at the Municipal Services Building. The council's ballot argument and the required impartial analy- sis of the ballot measure by City Attorney Valerie Armento are posted for public viewing outside Battaya's City Hall office. City Council calls April park Overcoming the doubts eXpr~sed by one of its members, the City. Council Wednesday pushed ahead with a plan to enlarge Orange Memorial Park ' through the sale of $5 million in municipal bonds. - The council unanimously agr. eed to seek voter approval of the bond issue in a special April 12 election. However, the show of unity came about only after Coun- cilman Mark Addiego was assured that the scope ant1 cost of park expansion could be cut back. Addiego said he supported a smaller bond issue for more limited park expansion. He went along with the larger scheme after being advised that the city need not sell the full $5 million if prob- lems arise. The plan calls .for the enlarging the park, already the city's big- gest and most heavily used, through purchase of the 4.6-acre Mazzanti & Sons Nursery for $1,- 875,000 and 6.9 acres of adjacent California Water Service Co. land for $1,503,000. Development of turf areas, sports fields (one lighted for adult softball), a snack-bar and rest- rooms, play equipment and security lighting is ~stimated at $1,- 383,000. Architectural services and the costs of selling the bonds bring the total price tage for the expansion to $4,921,000. Depending on whether the bonds are repaid over 20 or 25 years, voter approval would mean an annual tax levy of either 17.5 cents or 16.3 cents, respectively, for each $1,000 of assessed valua- tion. On property assessed at $100,000, for instance, the yearly tax would be either $17.50 or $16~30, depending on the amorti- zation schedule. Addiego had .been absent Dec. 15 when the council took the first step in calling the election. His comments touched off a testy exchange with Councilman Rick Haffey, who said the success of the bond issue was being under- mined. "I'm concerned that we're play- ing a little fast and loose as to the amount," Addiego said, adding that he could fully support Only the acquisition of the Mazzanti property. . . While acquisition ot the nursery land, which the Mazzantis plan to sell, is urgent, the water district land is not, he said. "1 think that property is safe," AddJego explained in suggesting that the water district acquisition be dropped. If that were done, he said the council would not "have to be afraid of loading up on the bond issue." Haffey said he was disappointed that Addiego waited until the 11th hour to voice his concerns, thereby casting doubt on.the endeavor. "This is precisely the kind of discussion that will defeat a bond measure," he said, warning that 13~UVERY: Meaaages al0out delive~ shoeld be phoned in to 266-9660 belwe~ 9 a.m. anti 5:30 p,m. er aa, ti I~ council unity was critical tc~ con- vinCin8 the voters of the worth of the plan. ' 3APER ~,~ ' Saturday, December Park expansion bond vote date delayed again By DAVE MADDEN Like a sailor in uncharted waters, the South San Francisco City Council is maneuvering warely into a special election on municipal bOnds for expansion of Orange Memorial Park. After discussing park expansion for the third time Wednesday night, council members~remain uncertain about when the election should be held and how large of a bond issue should be sought. The discussion will-be resumed Dec. 16, whith also iS'~the dead- line for settihg the election for April 12, 1988, as proposed by city staff and supported by at least one · councilman, Rick Haffey. Other council members, most notably Mark Addiego and. Roberta Teglia, appeared appre- hensive about that date. They questioned whether it allows suf- ficient time to rally the necessary two-thirds voter approval for pas- sage of the bonds and suggested pushing back the election by almost a year, to March 1989. There also was no consensus on whether the bonds should finance not only land acquisition, but development as well. The bond issue could range from about $2 million to more than $5 million, depending on which alternative is chosen. Enlarging the park, the city's largest and most heavily used, has long been a municipal goal and is believed to be enjoy widespread support among residents, particu- lady those involved in youth and adult sports organizations. Haffey was the strongest advo- cate of an April election and of the larger bond issue to finance development. "1 don't have a problem with the $5 million figure. I just don't want to find out later that it wasn't enough. I don't think We can expect to go to the well twice;'' he said. The conservative view was that asking too much of the voters could doom the project. "It worries me. It's a lot of money to take out," Teglia observed at one point, "and this community does not have a long history of passing bonds." Addiego noted Voters typically rank police and fire needs asa high~ priori~/,, yet .they rejected bonds fora ptiblic safety facility when POlitics:and confusion were allowed to cloUd the iSSue. "It slipped through the coun- cirs fingers at the time," he said of the failed bond issue in 1977. The expansion initially involved only the acquisition of Mazzanti & Sons Nursery, 4.6 acres of fields and greenhouses immediately north of the park. It has since been expanded to include the purchase or leasing of 7.2 acres of adjacent land owned by the local water district. In addition, there is growing sentiment to make use of the opportunity to relocate the city's corporation yards from the park, thus freeing up another 4.? acres of land for recreational purposes. To pay for expansion, voters here would be taxing themselves for 20 or 25 years. Based on a 20- year term .and an assessed valua- tion of $110,000, property owners would be pay an annual tax of between $7.59 and $19.25. While acquisition seems fairly straightforward, park develo.p,- ment is complicated by the city s agreement to buy.the Mazzanti land. The deal gives Peter and Enes Mazzanti at least five years to move their commercial flower growing business, meaning that no development could occur for some time even if money were avatlable.~ The Mazzanti's also want to see an election held before July 1988, although their representative, Bruno Scopesi, said he would seek their reaction to delaying the vote to spring 1989. "We want this (project) to hap- pen. We're not trying to string (the Mazzanti's) out for time. It's to make it work," said Addiego of the postponement. ENTERPRISE JOURNAL Saturday, November 21, 1987 Park expansion endorsed by commiss will become," she explained, d~ng the'!~d at -the same poration yards now situated in when adja By DAVE MADDEN "You're saving the taxpayers time~' - ~ ~ Orange Park. ~became ' , ~ r ' ~· · Norton said it was .a possibility, iimprovem As -ex-~ected, thecity~s Parks and money by doing it together.' . This is one of those rare articularlv if a cheape~ means of~ parks sho Recreatmn Commission has reaf- Commissioner Albert Dim- projects that seem~ tO have. almost P firmed its approval of Orange minger was less certain, question- UniVersal apprOVal,, Observed acquiring the water district land * measure. Memorial Park expansion, inS whether Voters Would be pre- Sunshine Gm. dens, resident Jim could be found. Were that to hap- At a public hearing Thursday pared io foot the bill for both. Keegan~' 'qNe Sh~mld be thinking · coveredPen' relocatiOnwithoutCOStSincreasingmight thebe Norton night, the cOmmission once again acquisition and deveropment, abobt ~ng~thewa. yWith i,t; It's size of the bond issue, he said. ~P~~ endorsed the idea~f enlargipEthe "It's s~mething rd have to mull not gOing toWany cheaper. The onlY dissent came from muddyth park, but refrainet~from c~i~g oVer,"*he said. ' from among thr~e alternative The hearing drew about a dozen Another 'speaker,. Andy Westborough resident Albert "Right r schemes for carrying it out. people, only four of whom made Rodondi, queSfibned whether the Waters, who recounted hoW the (about the · T.he park, already the largest comment. Three of the four expansion plans also should city overlooked WestborOugh it's imporl and most heavily used in the city, speakers supported buying and include relocation of two city cor- Park expansion several years ago tioue,' he ~ould ~row' by more than 50 per- cent w~ththe purchase of.a 4.6- aCre nursery and the purchase o~ leasing of anothe.r 7.2 acres of jand o~ned by the local water dis- ~ict. The additional land could be l~sed: fo¥ picnic areas, softball, baseball and soccer fields, and several new parking~ots. · ~ Whatever form it takes, the ~expansion hinges on voter ~.approval of 'a bond issue for fin- ancing. City officials currently are ~,uggesting April 12 for a special . .election on the matter. - The City Council, which will dis- CUss park .expansion at its .Nov. 25 ~eetin$, already has approved pUrChase Of the ' ./vb~anti & Sons Nursery for $1,875~000..The council has yet to-~' ..~Wl~ther~tO buy · ~.,m" lease the ~acent ,California .Water Service Co. land, nor [~hether a.bond measure should ;]~du.de.the ~osts of-developing ~.¢pmbl~!~l,:SaCreS.` i~'.', · remains uncertain. Besides April 12, the June primary and November ~geneta[!~leCfl;ti0n~. next year have been mePtioned along with a speCial Mat'~ch 1989 elec- tion, AlthOUgh they took no formal position, seyerqparks and recre- ation comniissioners indicated support for~ a bond issue large enough to bUy and develop the land. They also' rejected a West, borough couple's Sugges.tion that ~e bonds, be used,.to' ~o l~oney for.expansion and/.o.,r 'improvements at aB of the city s :parks and recreationamas. G~NTRAI- R~C;ORD~ , In presenting, updated- cost esti- mates Thul:sday, Community Ser- ~' vices DirectorLyle Norton said the bond !ssue could range from about $1,975,000 to about $5 mil- · ~ uu~ng~' eutm~eevempmg a! this time, the, nursery at a cost ot $1,976,000; · Buying the nursery, leasing' the water district land and "modestly" deyeloping both prop- erties at a cost of about $3,295,- O00; and * · Buying and developing both properties' at a cost of about $5 ~nillion, possibly less if the city can- WOrk out "creative financing" for the water district land. The .bonds c&uld be repaid i~ either 20 or 25 years. Using the 20- ~ar term and an assesse~l valua- tion of $110,000, Norton said prop- erty owners would pay a yearly tax of $7.59 for the first option, $12.54 for the second, and $19.25for the third. ' ,"It's just as easy to pass.a bond measure, of $5 million as it is $3 million, commission Chairman t Jake Jones said afterward. "1 think the land should be acquired and developed at the same time, rather than having it set fallow for a period of years."~ Commissioner Marie Peterson agreed. "1 think the longer you wait to develop, the more expensive it ENTERPRISE JOURNAL Saturday, November 21, 1987 expansion end orsed by commissio.n,, ~s Parks and On has reaf: of Orange don, ~ Thursday a once again ~nlar$!pg-the ~m ci~g altern~Ve t out. the largest J in the city, than 50 per- se of a 4.6- PUrchase o~ '~2 acres of al water dis- ad could be !s~ softball, fields, and :iakes, the on voter ~ue for fin- urrently are ~' a special ~ch will dis- ! its.Nov. 25 t approved Ul~i & Sons council r tO buy , .California land, nor ure should ~le~lpping ~es April :~a~ry and ~ next ~d. along ,1989 elec- ~ formal ~a recre- ?ndicated ii~Ue large tde .~ a West. "Stion: that i'~ raise n and/or ere city's cost est/- Unity Ser- ,n Said the ige from b} $5 mil, '~ .~_ .are: dOPing at a cost of ', leasing' ~nd anc~ oth prop- t. $3,295,- ~ng both about $5 e city can cing" for 'epaid i~ ~g the 20- ~ valua- ~1 prOp- · arly tax n, $12.54 !5for the ~.a bond it is $3 hairman "1 think red and e time, ~llow.fOr ~eterson w~it to nsive it ,wi, Il :b, ecome," sh.e explained. ~ou re saving the taxpayers money by doing it together." . CommisSioner Albert Dim- minger was less certain, question- in8 whether VOters would be pre- pared to foot the bill for both acquisition and deveropment ' "It' , ' s s~mething I d have to mull over," he said. The hearing drew about a dozen people, only four of whom made comment. Three of the four speakers supported buying and developing the land at the same poration yards now situated in when adjacent school district land time. ~ "This is One of those rare p~s that seems to have almost Universal aPprOval/' observed Sunshine Gardens, resident Jim .Keedan. 'q/Ve should be thinking ~ ~F~ing ali the way with it. It's not gOing to get'any cheaper." Another 'speaker,. Andy Rodondi, queSfibned whether the expansion plans also should include relocation of two city cor- Orange Park. !became available. He said Norton said it was a possibility, iimprovements to all Of the city's particularly if a cheaper means of parks should be included in the acquiring ti~e water district land", measure. cotild be found. Were that to hap- pen, relocation costs might be Norton opposed that idea, sug- covered without increasing the LResti~t broadening the pur- size of the bond issue, he said. pose-~f *t~e bond measure would The only dissent came from muddy the water for voters. Westborough resident Albert "Right now there's some clarity Waters, who recounted how the (about the issue) and I think that city overlooked Westborough it's important that that clarity con- Park expansion several years ago tinue," he said. ¥ N D 0 it .tTY OF SOUTH SAN FRANCIS[ South Stun Frnn¢ir~, GA. g4080 San Mateo Times Newspaper Group 1331 San Mateo Avenue !t KPOHT NO. Date March 18, lgF~a RECEIVED AT: 4~0 Smml Av, m~ ~l~ ~ Fr~mc~e, ~life~J~ ~ So. San Francisco, CA 94080 D&te of Order Stock No. City Clerk (ENTER INVOICE Department-Division Description NUI~ER AND DATE) INVOICE NO. 12168EJ dated 3-16-88 ORDINANCE NO. 1030-88 REPEALING ORDINANCE NO. 1027-88 - ORANGE MEMORIAL PARK IMPROVEMENTS Purchase Order No. Date Recioved B-2173 Ou&ntity Unit Unit Price Amount 88.32 Cost To I certify that the goods or services shown above represent partial delivery under the referred purchase order, and that such goods and/or sera'ices conform exactly with the specifications except as otherwise notrd. Account For Using Department Only Bo Charged To: ~o: 1 2-4402-102-022 $ 88.32 Account No: (White) Accounting copy (Yellow) Purchasing copy (Pink) Originating Dept. File. AS/P (5/82) 5M LEGAL ADVERTISING INVOICE South San Francisco Enterprise Journal Daly City Record · San Bruno Herald Brisbane Bee · Recorder Progress The Coasts/de Chronicle SAN MATED TIMES NEWSPAPER GROUP _._..____ Published by Amphle~ Priming Company 1331 San Mated Avenue. South San Francisco, CA 94080 ~' J Phone (415) 348-4467 12168 Please Remit to: Amphlett Printing Company · P.O. 8ox 5400 · San MateD, CA 94402 88.32 C 0 P Y 1988 ORDER 877-3518 CITY DF SOUTH SAN FRAHCISCO ATTN: BARBARA A. 3ATTAYA P. O. BOX 711 SO. SAN FRANCISCO, CA 94083 ~TITLE OF NOTICE IN THE MATTER OF' 0 RAN GE DATE R ECEI¥~:I3 PUBLISHED ON INSERTION ORDINANCE NO. 1030-88 REPEALIItG ORDINANCE NO. 1027-86 MEMOP, IAL PAR',( IblPROVEMENTS ... TOTAL 88.32 V E N D 0 R PARTIAL RECEIVINO lmlePORT CITY OF SOUTH SAN FRANCISCO South San Francisco, CA. 94080 San Mateo Times Newspaper Group 1331 San Mateo Avenue Ii EPOHT NO._ Date January 25. 1988 So. San Francisco, CA 94080 RECEIVED AT: 400 Grand Avenue South ~n; Francisco, California 94080 Date o! Order Stock No. City Clerk Department .Division Descript ~ on (ENTER INVOICE NUMBER AND DATE) INVOICE NO. ]]863 dated ]-]3-88 E[ECIION N0/ICE - A SPECIAL MUNICIPAL EkECIION OF THE CITY OF SSF WILL BE HELD TUES. APR. 12 (ORANGE MEMORIAL PARK) Purchase Order No. Date Recieved B-2173 Ouantity Unit } Unit Price Amount 76.80 I certify that the goods or services shown above represent partial delivery under the referred purchase order, and that such goods and/or services conform exactly with the specifications except as otherwise not~i. (White) Accounting AS/P (1/84) 5M Cost To Be Account No: Account No: copy (Yellow) Purchasing copy I For Using Department Only Charged To: 12-4402-1 02-022 76.80 File. '88 J/iN 25 P3:59 CiTY d L ::'.~ ~.' SO. S~I'~ ~'" '~'-"'~" d d V E N D 0 R PARTIAL RECElWlNO REPORT CITY OF SOUTH SAN FRANCISf. u South San Francisco, CA. 94080 San Mateo Times Newspaper Group 1331 San Mateo Avenue So. San Francisco, CA 94080 It EPORT NO. Date Jan. 21, IQSR RECEIVED AT: 400 Graml Avenue South San Frandaco, California 640~0 Date oi Order Stock, No. City C1 erk (ENTER INVOICE NO. Department-Division Description INVOICE NUMBER AND DATE) 11887EJ dated 1/20/88 ORDINANCE NO. 1027-88 AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT... AT AN ELECTION 4/12/88 Purchaae Order No. Date Recieved B-2173 Quantity Unit Unit Price Amount 45312 I certify that the goods or services shown above represent partial delivery under the referred purchase order, and that such goods and/or services conform exactly with the specifications except as otherwise noted. (White} a¢¢ount:inq AS/P 203 (8/85) SM Coat To Be Account No: Account No: copy (Yellow) Purchasing copy I For Using Department Only Charged To: 12-4402-102-022 s 453.12 .CITY OF ATTN: BARBARA A. P. 0. BOX 711 SO. SAN FRANCISCO, LEGAL ADVERTISING INVOICE SAN MATEO TIMES NEWSPAPER GROUP South San Franct$co EnterDrise Journal PuDlisl~ed by Amphlett Printing Company Oaly C/ty Record · San Bruno Herald Bnsbane Bee . Recorder Progress Phone1331 San(415)Mateo348.4467Avenue · Sou~h San Francisco, CA 94080E J eooaa, deO ron, ,e 11887 .... ' Please;l~emit to: Amptll~,~ Printing Company · P.0. Box 5400 · San Mateo, CA 94402 ~ J/W 21 l~9:22 (' 453J12 ' DATEWed. Jan 20, 1988 BATTAYA CA 94083 ORD~ No. T~: 877-8518 TtT'-EOFNOT,CE ORDINANCE N0.1027--88 AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITIO? ,,~,EM^~E, OF OF INCURRING BONDED DEBT ......... AT AN ELECTION TO BE HELD FOR THAT PURPOSE OATER£C~IV~ 1--15--88 O^TEO. 27 ,U.'-',.E=O" Wednesday, January 20/ 1988 as ~ ,INSERTION SE-'I' 7 "O'~ 2 co,-. 236 '-,.Es ~ requested. I AMOUNT .96 453.12 TOTAL 453.12 $ ¥ E N D 0 R San MateD Times Newspaper 1331 San Mated Avenue ~ PAnTIAL P~CEIVINO REPORT CiTY OF SOUTH SAN FRANCISL,, South San Francisco, (IA. g4080 B EPORT NO. Date 1/14/,.%q Group RECEIVED AT: 400 Gfldd Avemm Seuth S~n Fram:t~o, CIIifemb ~ South San Francisco, CA 94080 Date of Order Stock No. Department-Division O$~y Clerk Description (ENTER INVOICE NUMBER AND DATE) INVOICE NO. 11863 £J dated 1/13/88 ELECTION NOTICE - A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SSF WILL BE HELD TUES. 4/12/88 (ORANGE MEMORIAL PARK). Purchase Order No. Date Recieved B-2173 Ouantity Unit Unit Price Amount 76.a0 ! certify that the goods or services shown above represent partial delivery under the referred purchase order, and that such goods and/or services conform exactly with the specifications except as otherwise hotel. (White) Accounting AS/P 203 (8/85) 5M Cost To Be Account No: Account No: copy (Yellow) Purchasing copy For Using Charqed To: Department Only 7~.30 $ (Pink) Originating Dept. Fi] LEGAL ADVERTISING ~NVOICE SAN MATEO TIMES NEWSPAPER GROUP South San Francisco Enterprise Journal Pubhsned by AmDnlert Prtnttng ComDany Oaiy City ~ecoro · San Bruno Herald ",331 San Mated Avenue * South San Francisco CA 9~080 ~, j BnsDane Bee · ~ecor~ler Progress Phone f415) 348-4~,67 TheCoastmc;eC,':ron,c,e 11863 Please Retort to: Amohlert Printing Company · PO. Box 5400 · San MateD. CA 94402 ($ ? . ; · ) COPY CITY CF SOUTH SAN ~-P. LNCiECO ATT~7: EAREARA A. EA?TAYA - CITY P.O. ED:' 711 So. San Pranciscc, CA. ~40a:- O~DER NO. T~. C77--~15 2LECTIO_~] NOTICE - A SPECI/.L. :~Ui'TICIP-AL · TITLE OF NOTICE OF TEE CITY OF SS? ~.qiLL BE HELD TUES. IN THE MA~ER OF (ORAl,GE "~?'~ ' PAF.!~) XLECTI" £.PE.!2 DATE OF PUBLISHED ON ?7=DEEEDAY , JAL'.. 1Z , 2 0 , 2 INSERTION ..q $~-r 7 POINT I COL. -:,.(.; 19£5 L,N~S e . ? 6 AMOUNT NO. NO. TOTAL CITY OF SOUTH SAN FRANCISCO South San Francisco, California CHECK REQUISITION P A Y E E United States Postmaster Main Office South San Francisco, CA 94080 L_ DATE Rr(~UlSlTIDNED 11/10/87 AMOUNT 50 I 00 BUDGET A U T H O R I Z A T I O N 1 2-4402-102-022 OTHER AUTHORITY Bulk Permit #138 Bulk Mailing of Sample Ballots for Election 4/12/88 REQUESTED City Clerk AMOUNT CERTIFIED PRE AUDIT BY ACCOUNT ND. ACPDUNTIKG DISTRIBUTION AMOUNT REMARKS: pAyMENT APPROVED-- AS/A 20i (i0/82) 5M (WHITE) FINANCE (PINK) RETAIN POSTMASTER: Remittance (payable to Year Postmaster) of annual mailing fee(s) for calendar year. (Check applicable box(es).) NOTE: FEES are not refundable. Presorted First-Class Mail, Permit No. Carrier Route First-Class, and ZIP + 4 presort fee ($50 one fee for all) Presorted special Fourth- Permit No. / Class Mail fee ($50) Third-Class Bulk mailing fee ($50) Other Meter License Permit Imprint Precanceled No. No. Stamps/Env NOI~ROFIT ORGANIZATI(~S AUTHORIZED TO MAIL. AT ~PECIAL BULK RATES MUST COIV~LETE T~IIS SECTION: The purpose, function and nonprofit status of this organization and the exempt status for Federal income tax purposes (Check one) Changed during preceding 12 months? [] YES {If "YES" submit written explanation of change with this form/ [] NO 36~,, July 1985 (,¥ame of mailer/6r whom hulk fee is paid-Print or Type above) Address/Include ZIP Codc~ Tel. No. ts name or address shown above different from that shown on reverse? [] NO [] YES (1/ YES. please advisej T~e letter shop, printing firm, or other organization shown below will act as our agent in preparing these mailings. Mailing Agent (Name) Address (]'nclude ZIP Code) Tel. No. Signature Date MAILING FEE NOTICE ~' U.S. GP~: 1986--497-547 OFFICE OF THE CITY CLERK (415) 877-8518 February 18, 1988 Ms. Eunice Brecht, Clerk San Mateo County Board of Supervisors Hall of Justice and Records Redwood City, CA 94063 Re: Cancellation of Special Municipal Election April 12, 1988 Dear Ms. Brecht: Please be advised, that the South San Francisco City Council at their adjourned regular meeting of February 17, 1988 adopted Resolution No. 22-88, A Resolution rescinding previously adopted resolutions concerning a Special Municipal Election for the purpose of submitting to the voters a proposition concerning issuing general obligation bonds for Orange Memorial Park. The Council also had a first reading on an Ordinance to cancel the submission of a proposition of incurring bonded debt which will be adopted at the regular meeting of February 24, 1988. I am enclosing a certified copy of said Resolution No. 22-88° Very truly yours, Barbara A. Battaya City Clerk Enclosure cc: Election Department - Maureen Service Printing Co. 400 GRAND AVENUE - P.O. BOX ?1! - 94083 RESOLUTION NO. 22-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RESCINDING PREVIOUSLY ADOPTED RESOLUTIONS CONCERNING A SPECIAL MUNICIPAL ELECTION FOR THE PURPOSE OF SUBMITTING TO THE VOTERS A PROPOSITION CONCERNING ISSUING GENERAL OBLIGATION BONDS FOR ORANGE MEMORIAL PARK WHEREAS, the City Council of.the City of South San Francisco previously took actions to submit a general obligation bond measure to the voters at a special municipal election to be held April 12, 1988; and WHEREAS, the city'Council~has since changed its mind and determined not to submit the measure to the voters; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it hereby rescinds the following resolutions: Resolution No. 131-87, A Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco. Resolution No. 8-88, A Resolution Calling and Ordering a Special Muni- cipal Election To Be Held On April 12, 1988 For The Purpose of Submitting To The Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park). Resolution No. 9-88, A Resolution Requesting the Services of the San Mateo County Clerk and Authorizing the Filing of an Impartial Analysis, Written Argument and Statements Thereon For the City Proposition. BE IT FURTHER RESOLVED that this resolution shall take effect upon its adoption by a two-thirds vote of all the members of the City Council, and that the City Clerk is directed to transmit a copy of this resolution to the County Clerk. I hereby certify that the foreg6ing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 17th day of February , 19 88 by the following vote: Board of Supervisors BOARD OF SUPERVISORS ANiNA G. ESHOO MARY GRIFFIN TOM HUENING TOM NOLAN WILLIAM J. SCHUMACHER EUNICE M. BRECHT CL~RK OF THE BOARD (415) 363-4566 February 17, 1988 Barbara A. Battaya City Clerk City of South San Francisco 400 Grand Avenue Post Office Box 711 South San Francisco, CA 94083 Dear Ms. Battaya: The Board of Supervisors at its meeting of February 16, 1988 adopted RESOLUTION NO. 50083 AUTHORIZING THE COUNTY CLER~ TO RENDER SPECIFIC ELECTION SERVICES FOR ELECTIONS TO BE HE~D ON APRIL 12, 1988. A certified copy of Resolution No. 50083 is attached for your records. Should you need additional information, please do not hesitate to contact me. Very truly yours, EUNICE M. BRECHT Clerk of the Board of Supervisors Attachment RESO,U O..0. 50083 BOARD OF SUPERVISORS, COU~Y OF SA" MATEO, STATE OF' CALIFOR111A RESOLUTI011 REQUESTI11G BOARD OF SUPERVISORS TO AUTHORIZE THE COUIITY CLERK TO RE11DER SPECIFIC ELECT1011 SERVICES FOR ELECTIOI1S TO BE HELD 011 APRIL 12, lg88 I11 THE CITIES OF COLHA, EAST PALO ALTO, REDWOOD CITY A11D SOUTH SA11 FRA11ClSCO WHEREAS, Section 2200;5 of the Elections Code of the State of California provides that the 9overnin9 body of any city may, by resolution, request the Board of Supervisors of the County to permit the County Clerk to render specified ~services to the city rel~tin9 to the conduct of an election; and WHEREAS, subject to the approval of the Board of Supervisors, such services shall be performed by the County Clerk; and WHEREAS, the County Clerk has received requests for specified election services from the cities of Colma, East Palo Alto, Redwood City and South San Francisco for the General iduniclpal Elections to be held Aprtl 12, !988; MOW THEREFORE; BE IT RESOLVED BY THE BOARD OF SUPERVISORS: 1. That the County Clerk is a~tthorized to provide specific election services for the cities of Colma, East Palo AIto,'Redwood City, and South San Francisco for the April 12, 1988 bl~nicipal Elections. Regularly passed and adopted this 16th day of February, 1988~ AYES and in favor of said resolution: Supervisors: MARY GRIFFIN TOM HUENING ANNA G. ESHO0 TOM NOLAN WILLIAM J. SCHUMACHER NOES and against said resolution: Supervisors: NONE Absent Supervisors: NONE (SEAL) WILLIAM J. SCHUMACHER President, Board of Supervisors County of San Mateo State of California Certificate of Delivery (Governmental Code section 25103) I certify that a copy of the original resolution filed in the Office of the Clerk of the Board of Supervisors of San Mateo County has been delivered to the President of the Board of Supervisors. ~UNICE M. BRECHT Clerk of the Board of Supervisors STATE OF CALIFORNIA) ) COUNTY OF SAN MATEO) ORLENE FERRANDO, Deputy Clerk, Board of Supervisors, d~es hereby certify that the above and ~o~g~ng is a full, true and correct cope of Resolution No.~UU~ entered in the minutes of said Board. of said Board this ~ day In Witness Whereof, I have hereunto set my hand and the seal of February, 1988. ORLENE FERRANDO Deputy Clerk, Board of Supervisors OFF~CE OF THE CITY CLERK (415) 877-8518 February 8, 1988 Mr. Don Freitas Service Printing Co. 1011 Edwards Rd. Burlingame, CA 94010 Re: Argument and Impartial Analysis for the South San Francisco Special Election to be Held April 12, 1988 for Ballot Printing Dear Mr. Freitas: Enclosed please find the above stated documents to give you sufficient time for ballot preparation. The rebuttals are due February 16, 1988 (due to the 15th being a holiday), and I will forward same after that date. Please note the bold lettering in paragraph five of the Argument. I am also in need of two thousand labels for absentee ballot mailings that say the following: City Clerk Barbara A. Battaya 400 Grand Avenue South San Francisco, CA 94080 Thank you for your assistance in this matter. Very truly yours, Barbara A. Battaya City Clerk 400 GRAHD AVENUE - P.O. BOX 711 - 94083 IMPARTIAL ANALYSIS OF CITY ATTORNEY, CITY OF SOUTH SAN FRANCISCO The California Constitution authorizes a city to issue general obligation bonds if approved by the 2/3 vote of the electorate. General obligation bonds are paid by an annual charge against all parcels of real property, including residential, commercial, and industrial, within the City. Currently the City of South San Francisco does not have any outstanding general obligation bonds. State law permits a debt level of a maximum of 15% of total assessed valuation. The City of South San Francisco proposes to finance acquisition of additional land and improvements to the land acquired for the expansion of Orange Memorial Park. Approximately 11.5 acres of property would be acquired and developed. This would expand the existing park by more than 50%. General obligation bonds are typically the most cost effective bond that a city can issue. The interest rate for the bonds cannot exceed the legal limit of 12% and in the present market, interest will be in the 6%-8% range. Other financing alternatives will probably be more costly. The City of South San Francisco proposes to issue up to $5 million of general obligation bonds to finance certain park and recreation imp)rovements. If the bonds are repaid over a 20 year period, the annual tax levy for each $1,000 of assessed valuation would be 17.5 cents; therefore, .for a property assessed at $100,000, the yearly tax would be $17.50. If the bonds are repaid over a 25 year period, the annual tax levy for each $1,000 of assessed valuation would be 16.3 cents; therefore, for a property assessed at $100,000 the yearly tax would be $16.30. These annual amounts are subject to reductions over the 20 or 25 year period of the bonds as the total assessed value of property within the city increases. Two pieces of property would be purchased: approximately 4.6 acres known as the Mazzanti property and approximately 6.9 acres known as the California Water Service property. Both of these properties lie immediately adjacent to the existing Orange Memorial Park. The cost of purchasing the Mazzanti property is $1,875,000. This amount is the result of negotiations between the City and the Mazzantis and is payable over a six year period. As of January 25, 1988, the cost to purchase the California Water Service property has not been precisely determined, but is estimated not to exceed $1,503,000. California Water Service will retain easements for access to and maintenance of the three water wells o)n the property. Development of the property acquired would include demolishing the existing greenhouses, grading the property, providing adequate drainage and irrigation improvements, and installing turf, walkways, parking and fencing. Additional improvements proposed include security lighting, softball field lighting, bleachers for a maximum of three ballfields, play equipment structures, and a combination restroom/snack shack facility. ARGUMENT IN FAVOR OF MEASURE Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. Thie community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing the size by 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, base- ball, soccer, tennis, Oocce ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and develop- ment of two parcels of land providing 11.5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, coul.d be developed for private uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. Remember industrial ~nd co~ercJ~l properties w~11 p~ 60% of the bill for this community amenity, A bond issue is being proposed because that is the only prac- tical financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better place to live - vote Yes on A ~ /s/ Jack Drago Jack Drago, Mayor /s/ Roberta Cerri Teglia Roberta Cerri Teglia, Vi ce Mayor /s/ Mark N. Addiego Mark N. Addiego, Councilman /s/ Richard A. Haffey Richard A. Haffey, Councilman /s/ Gus Nicolopulos Gus Nicolopulos, Councilman "ARGUMENTS IN SUPPORT OR OPPOSITION OF THE MEASURE ARE THE OPINIONS OF THE AUTHORS" February 12, 1988 TO: SUBJECT: ACTION: The Honorable City Council Cancellation of Special Municipal Election for the Expansion of Orang~ P~rk Adopt Resolution, Motion to Waive Further Reading of Ordinance and Motion to Introduce Ordinance At the City Council meeting of February 10, 1988, the City Council directed staff to prepare the necessary resolution ~and ordinance to rescind previous actions regarding the proposed bond measure for the expansion of Orange Park. This resolution rescinds previously adopted resolutions concerning a Special Municipal Election for the purpose of submitting to the voters a proposition concerning issuing general obligation bonds for Orange Memorial Park. The ordinance repeals ordinance No. 1027-88, cancelling the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements. Respectfully submitted, Mark Lewis City Manager Elayna McCart¥ Assistant to the City Manager ML:EBM:mgo RESOLUTION NO. 22-88 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RESCINDING PREVIOUSLY ADOPTED RESOLUTIONS CONCERNING A SPECIAL MUNICIPAL ELECTION FOR THE PURPOSE OF SUBMITTING TO THE VOTERS A PROPOSITION CONCERNING ISSUING GENERAL OBLIGATION BONDS FOR ORANGE MEMORIAL PARK WHEREAS, the City Council of the City of South San Francisco previously took actions to submit a general obligation bond measure to the voters at a special municipal election to be held April 12, 1988; and WHEREAS, the City Council has since changed its mind and determined not to submit the measure to the voters; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City Of South San Francisco that it hereby rescinds the following resolutions: Resolution No. 131-87, A Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Completion of Orange Memorial Park Improvements and Their Financing by Means of the Issuance of General Obligation Bonds of the City of South San Francisco. Resolution No. 8-88, A Resolution Calling and Ordering a Special Muni- cipal Election To Be Held On April 12, 1988 For The Purpose of Submitting To The Voters the Proposition of Issuing General Obligation Bonds (Orange Memorial Park). Resolution No. 9-88, A Resolution Requesting the Services of the San Mateo County Clerk and Authorizing the Filing of an Impartqal Analysis, Written Argument and Statements Thereon For the City PropoSition. BE IT FURTHER RESOLVED that this resolution shall take effect upon its adoption by a two-thirds vote of all the members of the City Counciil, and that the City Clerk is directed to transmit a copy of this resolution to, the County Clerk. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adj. regular meeting held on the 17th day of February , 19 88 by the following vote: AYES: Councilmembers Mark N. Addieoo, Gus Nicolopulos, RobertaiCerri Teglia, and Jack Draoo NOES: Councilmember Richard A. Haffey ABSTAIN: None ABSENT: None ATTEST: /s/ Barbara A. Battaya City Clerk C~i i'T ~i~.~_ ORDINANCE NO. ~t~~ \ ~q?~'%% AN ORDINANCE REPEALING ORDINANCE NO. 1027-88 AND CANCELLING' THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED'.DEBT FOR.-..''r~ THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND .COI~LETION OF ORANGE MEMORIAL PARK IMPROVEMENTS TO THE QUALIFIED VOTERS OF THE CITY OF SOUTH SAN FRANCISCO THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. Ordinance No. 1027-88 Repealed. Ordinance No. 1027-88, adopted January 12, 1988, ordering the submission of a proposition of incurring bonded debt for the purpose of the acquisition, construction and completion of Orange Memorial Park improvements to the qualified voters of the City of South San Francisco, is hereby repealed. SECTION 2. Transmittal to County. Upon adoption, the City Clerk is directed to transmit a copy of this ordinance to the County Clerk. SECTION 3. Adoption, Effective Date, and Publication. Pursuant to Government Code Section 43608 this ordinance has been adopted by a two-thirds vote of all the member of the City Council. This ordinance is adopted pursuant to Government Code Section 36937 and being an ordinance relating to an election shall take effect immediately upon its adoption. This ordinance shall be published once in the Enterprise-Journal, a newspaper of general circulation in the City of South San Francisco. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the day of , 19 . Adopted as an Ordinance of the City of South San Francisco at a meeting of the City Council of the City of South San Francisco, held the day of , 19 , by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Ulty U~erK As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 19 . Mayor -2- CITY OF SOUTH SAN FRANCISCt. INTER-OFFICE MEMORANDUM DATE: TO: St!B,I ECT: FROM: January 25, 1988 City Clerk ORANGE MEMORIAL PARK GENERAL OBLIGATION BOND ELECTION City Attorney Pursuant to Resolution No. 9-88, an impartial analysis of the bond measure has been prepared and is hereby forwarded to you. VALERIE d. ARMENTO City Attorney VJA/mm Enc. SS/205/6/86 IMPARTIAL ANALYSIS OF CITY ATTORNEY, CITY OF SOUTH SAN FRANCISCO The California Constitution authorizes a city to issue general obligation bonds if approved by the 2/3 vote of the electorate. General obligation bonds are paid by an annual charge against all parcels of real property, including residential, commercial, and industrial, within the City. Currently the City of South San Francisco does not have any outstanding general obligation bonds. State law permits a debt level of a maximum of 15% of total assessed valuation. The City of South San Francisco proposes to finance acquisition of additional land and improvements to the land acquired for the expansion of Orange Memorial Park. Approximately 11.5 acres of property would be acquired and developed. This would expand the existing park by more than 50%. General obligation bonds are typically the most cost effective bond that a city can issue. The interest rate for the bonds cannot exceed the legal limit of 12% and in the present market, interest will be in the 6%-8% range. Other financing alternatives will probably be more costly. The City of South San Francisco proposes to issue up to $5 million of general obligation bonds to finance certain park and recreation improvements. If the bonds are repaid over a 20 year period, the annual tax levy for each $1,000 of assessed valuation would be 17.5 cents; therefore, for a property assessed at $100,000, the yearly tax would be $17.50. If the bonds are repaid over a 25 year period, the annual tax levy for each $1,000 of assessed valuation would be 16.3 cents; therefore, for a property assessed at $100,000 the yearly tax would be $16.30. These annual amounts are subject to reductions over the 20 or 25 year period of the bonds as the total assessed value of property within the city increases. Two pieces of property would be purchased: approximately 4.6 acres known as the Mazzanti property and approximately 6.9 acres known as the California Water Service property. Both of these properties lie immediately adjacent to the existing Orange Memorial Park. The cost of purchasing the Mazzanti property is $1,875,000. This amount is the result of negotiations between the City and the Mazzantis and is payable over a six year period. As of January 25, 1988, the cost to purchase the California Water Service property has not been precisely determined, but is estimated not to exceed $1,503,000. California Water Service will retain easements for access to and maintenance of the three water wells on the property. Development of the property acquired would include demolishing the existing greenhouses, grading the property, providing adequate drainage and ~rrigation improvements, and installing turf, walkways, parking and fencing. Additional improvements proposed include security lighting, softball field lighting, bleachers for a maximum of three ballfields, play equipment structures, and a combination restroom/snack shack facility. ARGUMENT IN FAVOR OF MEASURE Orange ~emorial Park was dedicated in 1925 in memory of all South SAn Francisco veterans who gave their lives in defense of our ~ountry. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing the size by 50%. Since 1925, the City's populat"on has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, base- ball, s~ccer, tennis, bocce ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bon~ issue would provide for the acquisition and develop- ment of|two parcels of land providing 11.5 acres of park space. !This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, could be developed for priyate uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day forlthis park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at 'the ballgame. Imagine a nickel a day to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. Remember industrial and commercial properties will pay 60% of the bill for this community amenity. A bond IlSsue is being proposed because that is the only prac- tical financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better iplace to live - vote Yes on A ! /s/ J!ack Drago Jack Orlago, Mayor /si RG Roberta /s/ Ma Mark N /s/ Ri Richarc /s/ GA berta Cerri Teglia Cerri Teglia, Vice Mayor rk N. Addiego Addiego, Councilman chard A. Haffey A. Haffey, Councilman s Nicolopulos Gus Nidolopulos, Councilman "ARGUMENTS IN SUPPORT OR OPPOSITION OF THE MEASURE ARE THE OPINIONS OF THE AUTHORS" The undersigned authors of the primary argument in favor of ballot measure at the Special Municipal Election for the City of South San Francisco to be held on April 12, 1988 hereby state that such argument is true and correct to the best of their knowledge and belief. ~~a Cern, ' i c~~M~ay~or Richard A. Haffey'~C~cilman Gus Nicolel6ulos, CouCFcilman Date Date Date IMPARTIAL ANALYSIS OF CITY ATTORNEY, CITY OF SOUTH SAN FRANCISCO The California Constitution authorizes a city to issue general obligation bonds if approved by the 2/3 vote of the electorate. General obligation bonds are paid by an annual charge against all parcels of real property, including residential, comaercial, and industrial, within the City. Currently the City of South San Francisco does not have any outstanding general obligation bonds. State law permits a debt level of a maximum of 15% of total assessed valuation. The City of South San Francisco proposes to finance acquisition of additional land and improvements to the land acquired for the expansion of Orange Memorial Park. Approximately 11.5 acres of property would be acquired and developed. This would expand the existing park by more than 50%. General obligation bonds are typically the most cost effective bond that a city can issue. The interest rate for the bonds cannot exceed the legal limit of 12% and in the present market, interest will be in the 6%-8% range. Other financing alternatives will probably be more costly. The City of South San Francisco proposes to issue up to $5 million of general obligation bonds to finance certain park and recreation in~)rovements. If the bonds are repaid over a 20 year period, the annual tax levy for each $1,000 of assessed valuation would be 17.5 cents; therefore,..for a property assessed at $100,000, the yearly tax would be $17.50. If the bonds are repaid over a 25 year period, the annual tax levy for each $1,000 of assessed valuation would be 16.3 cents; therefore, for a property assessed at $100,000 the yearly tax would be $16.30. These annual amounts are subject to reductions over the 20 or 25 year period of the bonds as the total assessed value of property within.'the city increases. Two pieces of property would be purchased: approximately 4.6 acres known as the Mazzanti property and approximately 6.9 acres known as the California Water Service property. Both of these properties lie in~ediately adjacent to the existing Orange Memorial Park. The cost of purchasing the Mazzanti property is $1,875,000. This amount is the result of negotiations between the City and the Mazzantis and is payable over a six year period. As of January 25, 1988, the cost to purchase the California Water Service property has not been precisely determined, but is estimated not to exceed $1,503,000. California Water Service will retain easements for access to and maintenance of the three water wells on the property. Development of the property acquired would include demolishing the existing greenhouses, grading the property, providing adequate drainage and irrigation improvements, and installing turf, walkways, parking and fencing. Additional improvements proposed include security lighting, softball field lighting, bleachers for a maximum of three ballfields, play equipment structures, and a combination restroom/snack shack facility. ARGUMENT IN FAVOR OF MEASURE Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existin§ park, increasing the size by 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, base- ball, soccer, tennis, bocce ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and develop- ment of two parcels of land providing 11.5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, could be developed for private uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. Remember industrial and commercial properties will pay 60% of the bill for this community amenity, A bond issue is being proposed because that is the only prac- tical financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better place to live - vote Yes on A ~ /s/ Jack Drago Jack Drago, Mayor /s/ Roberta Cerri Teglia Roberta Cerri Teglia, Vice Mayor /s/ Mark N. Addiego Mark N. Addiego, Councilman /s/ Richard A. Haffey Richard A. Halley, Councilman /s/ Gus Nicolopulos Gus Nicolopulos, Councilman "ARGUMENTS IN SUPPORT OR OPPOSITION OF THE MEASURE ARE THE OPINIONS OF THE AUTHORS" ~"'TY OF SOUTH SAN FRANCI,~O ,/~ z/,~ INTER-OFFICE MEMORANDUM DATE: TO: SUBJECI': FROM: FebruaK¥ 3, 1988 City Council INVOLVEMENT OF CITY IN BOND CAMPAIGN City Attorney This memo is presented to provide guidance on the subject of involvement of the City (Council and staff) in the Orange Park Bond measure campaign. The long-standing rule is that a public agency, in the absence of statutory authority, may not spend public funds to influence its voters to vote for or against a local bond issue. Money can be spent on official City business and in order to meet legal requirements (such as the matter being on a Council agenda and the production of the argument in favor of the measure). The reason expenditures, without express or implied authority, have been disallowed is because the taxpayers and voters opposing a bond issue have a right to and interest in the public funds equal to those who favor the issue. Advocacy is the focus. Activities involving advocacy cannot be engaged in by City officials or employees during the time when such individuals are supposed to be conducting City business. For Councilmembers, such times are essentially Council meetings and other meetings at which the Councilmember represents the City. During business hours it is permissible for officials and employees to provide information on specific issues when so requested by a citizen or by the press. A distinction must be maintained between a fair presentation of the facts given in reply to queries from the public and an effort to persuade voters to vote a particular way. On their personal time, individuals can participate in election activities as they see fit. Of course, no one's employment position can be made contingent on involvement or lack of involvement during personal time. City facilities are available for use for campaign meetings in the same manner and on the same terms in which they are available to other citizen groups. It should be made known to the public that if a group forms opposing the ballot measure, such a group may apply to use City facilities, also. VALERIE J. ~ARMENTO City Attorney VJA/mm cc: City Manager $S/205 (7/87) Orange Memorial Park wa~ dedicated in 1925 in memory of all SOuth San Francisco veterans who/gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owner5 The proposed expansion would add 11.5 acres to the existing 21 acres,.- increasing the size 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocc~ ball, swiping, picnics, jogging, and other recreation activities t~-p]ace ~n ~- The bond issue would provide for the acquisition and development of two parcels of land providing ~a~l 11.5 acres of ua&ble park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive am ti~ :~ ~ or even worse, could be developed for private uses L~t arc nu~ /~ The average South San Francisco f~ily would pay only 5~cnts a day for- this park expansion~ ~t~p~-'~o~--~:~p~v~i~ ~ai~k spa~o for ~~erat~s~ A true bargain compared to other recreational activities such as going to a movie or a day at the ~ll~e. Imagine a nickel a day, to enjoy the wide variety of sports, recreational and leisure activities a~ expanded Orange Memorial Park could RrQv~in A bon~ issue is being proposed because that is the only financing method' available to the co--unity to achieve this worthy goal. Let's make angc~.~e~rial Park-even be~- Vote Yes on ~ (33) BALLOT ARGUMENT IN FAVOR OF 5,000,000 BOND ISSUE TO EXPAND ORANGE PARK Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community, through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing ~h~"-~e/50%. Since 1925, the City's population has grown ten"fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocc~ ball, swimming, picnics, jogging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and development of two parcels of land providing 11,5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive or even worse, could be developed for private uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion - a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day~ to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Nemorial Park could provide in our own hometown. ........ Remember industrial and commercial properties will pay 70% of the bill. '--~-r-~h'~-S' community amenity. ?~.~ ~;~- ~ A bond issue is being proposed because that is the only/'financing method available to the, community to achieve this worthy goal. Let's make South San Francisco an even better place to live - Vote Yes on . ~ -- / BALLOT ARGUMENT IN ?AVOR OF 5,000,000 BOND ISSUE TO EXPAND ORANGE PARiK Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owners desire to sell now. The community through passage of this bond will ensure adequate park facilities for generations to come. The proposed expansion would add 11.5 acres to the existing park, increasing the size 50%. Since 1925, the City"s population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocci ball, swimming, picnics, jo~gging, and other recreation activities fight for scarce space. The bond issue would provide for the acquisition and development of two parcels of land providing 11.5 acres of park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the !and will only become more expensive or even worse, could be developed for private uses other than public recreation purposes. The average South San Francisco family would pay only 5¢ a day for this park expansion ~ a true bargain compared to other recreational activities such as going to a movie or a day at the ballgame. Imagine a nickel a day~ to enjoy the wide variety' of sports, recreational and leisure activities an expanded Orange Nemorial Park could provide in our own hometown. Remember industrial and commercial properties will pay 70% of the bill for this community amenity. A bond issue is being proposed because that is the only financing method available to the community to achieve this worthy goal. Let's make South San Francisco an even better place to live - Vote Yes on ~ -- / 6 Ta : Break Senior Ci i :en ' '.He!ps , ckoo ': By Erik Ingrain Exempting senior citizens from new school taxes was a key ing,redient in the successful pas- sage of tw.o tax measnres in Marls Count:~; on Tuesday, ob- servers said yesterday. ~ln Contra Costa County, two school districl:~ that did not exempt older citizens ~aw their measures "It was a very important com- ponent of the victory, but it wasn't the only one," .~aid Philip Muller, a political con.~l~ant hired by sup- port. ers of the .~uccessful Mill Valley measure. · After exempiing senior citizens from a five-year parcel tax of $120 annually, Mill Valley's committee in support of Measure C singled out selected grout~s for.an absentee bal- lot offensive. Among those groups were the elderly,-who were exempted from the tax. .... It was a good tactic," Muller said, adding that the campaign was patterned after a successful one earlier this year. in nearby Kent- rield. i Other groups singled out for special attention from 450 school measure volu,teers were parents of students and aiumni. iMeasure C, which needed two- thir'ds voter ~pproval for passage, won with 77 l,'~rcent of the vote -- 6,022 to 1,812. 'More tbaa 3,000 absentee bal- lots', were ea:,t, a percentage that county Cleric Howard tlanson de- scribed as "pl~ cnomenal." Muller crvdited the 450 volun- teers with ta:~ing an active part in the campaig~, identifying those Mill Valley residc:.~s most likely to vote for'ibc mea':ure and then going $choog E oarCl Member Defeats His Wife Associated Press Soles, N.D. Alden Itenderson retained his s~at on the Soles School District board, turning back an election challenge by his wife, Sarah, 75 votes to 24. Sarah llenderson, who served on the board from 1971 to 1981, said she ran against her husband simply because she wanted to get back on. the board and not because she dis- agreed with his views on school matters. Tile board's seats are divid- ed into districts, so she could not run against any other board mem- ber. Alden Henderson said he.was taking his wife out for dinner since the two agreed before the election that the winner would buy dinner for the loser. "So I guess I'm out that much," he said. door to door encouraging passage. Tile supporters also spent hours in the county clerk's office tracking those who had requested absentee ballots and those who had sent them in. Those who bari not sent them in, Muller said, wcr~ eo~t, acted again and encouraged to do so. A computer was used to keep track of the people, Muller added. Before the first ballot was east at the polls on Tuesday, "We knew we had the absentee ball~ots in the bag," Muller said. The campaign was financed on $18,000 in contributions, mostly $25 donations from local residents. "Fo~ a lot of. people, this was the first time they could identify with the results of a political issue," he said. "It was grass roots in the finest sense of the word." According to Mill Valley School Superintendent James Donough, the passage means the district be- comes one of only a dozen statewide to win voter approval of a tax in- crease. As with the Lagunitas School District tax measure, the other Mar- in County tax to win approval, there was ~o organized opposition to the Mill Valley measure. The tiny Lagunitas district, which has two schools and about 300 students, ran "a much more grass- rootsy campaign" than Mill Valley, according to school officials. School Business Manager Anna Mae Kondratieff said.the Lagunitas campaign was run by school trust- ees, primarily Lori Klein. It had no professional 'consul- tant, no large budget, no computer printouts.- The primary tool was the "phone tree" in which volunteers telephone a number of voters urg- ing support. Lagunitas' Measure B won with 72 percent of. the vote -- 588 to 226 -- and increases taxes by $98 a year per household for five years. In Contra Costa County, voters in the San Ramon Valley Unified School District thumped a tax in- crease measure with a ,54 percent negative vote -- 5,974 tO 5,151. IMPARTIAL ANALYSIS OF CITY ATTORNEY, CITY OF SOUTH SAN FRANCISCO The California Constitution authorizes a city to issue general obligation bonds if approved by the 2/3 vote of the electorate. General obligation bonds are paid by an annual charge against all parcels of real property, including residential, commercial, and industrial, within the City. Currently the City of South San Francisco does not have any outstanding general obligation bonds. State law permits a debt level of a maximum of 15% of total assessed valuation. The City of South San Francisco proposes to finance acquisition of additional land and improvements to the land acquired for the expansion of OrangeMemorial Park. Approximately 11.5 acres of property would be acquired and developed. This would expand the existing park by more than 50%. General obligation bonds are typically the most cost effective bond that a city can issue. The interest rate for the bonds cannot exceed the legal limit of 12% and in the present market, interest will be in the 6%-8% range. Other financing alternatives will probably be more costly. The City of South San Francisco proposes to issue up to $5 million of general obligation bonds to finance certain park and recreation improvements. If the bonds are repaid over a 20 year period, the annual tax levy for each $1,000 of assessed valuation would be 17.5 cents; therefore, for a property assessed at $100,000, the yearly tax would be $17.50. If the bonds are repaid over a 25 year period, the annual tax levy for each $1,000 of assessed valuation would be 16.3 cents; therefore, for a property assessed at $100,000 the yearly tax would be $16.30. These annual amounts are subject to reductions over the 20 or 25 year period of the bonds as the total assessed value of property within the city increases. Two pieces of property would be purchased: approximately 4.6 acres known as the Mazzanti property and approximately 6.9 acres known as the California Water Service property. Both of these properties lie immediately adjacent to the existing Orange Memorial Park. The cost of purchasing the Mazzanti property is $1,875,000. This amount is the result of negotiations between the City and the Mazzantis and is payable over a six year period. As of January 25, 1988, the cost to purchase the California Water Service property has not been precisely determined, but is estimated not to exceed $1,503,000. California Water Service will retain easements for access to and maintenance of the three water wells on the property. Development of the property acquired would include demolishing the existing greenhouses, grading the property, providing adequate drainage and irrigation improvements, and installing turf, walkways, parking and fencing. Additional improvements proposed include security lighting, softball field lighting, bleachers f~r a maximum of three ballfields, play equipment structures, and a combination restroom/snack shack facility. BALLOT ARGUMENT IN FAVOR OF 5,000,000 BOND ISSUE TO EXPAND ORANGE PARK Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owner desires to sell now. The community, through this bond issue, has the opportunity to make an investment for generations to come. (60) The proposed expansion would add 11.5 acres to the existing 21 acres, increasing the size 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocci ball, swimming, picnics, jogging, and other recreation activities take place in these confined 21 acres. (58) The bond issue would provide for the acquisition and development of two parcels of land providing the full 11.5 acres of usable park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive as time goes by, or even worse, could be developed for private uses that are not public park or public recreation in nature. (71) The average South San Francisco family would pay only 5 cents a day for this park expansion. A small price to pay for providing park space for future generations. A true bargain compared to other recreational activities such as going to a movie or a day at the ball game. Imagine a nickel a day, to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. (77) A bond issue is being proposed because that is the only financing method available to the community to achieve this worthy goal. Let's make Orange Memorial Park even better - Vote Yes on ! (33) BALLOT ARGUMENT IN FAVOR OF 5,000,000 BOND ISSUE TO EXPAND ORANGE PARK Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent property owner desires to sell now. The community, through this bond issue, has the opportunity to make an investment for generations to come. (60) The proposed expansion would add 11.5 acres to the existing 21 acres, increasing the size 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocci ball, swimming, picnics, jogging, and other recreation activities take place in these confined 21 acres. (58) The bond issue would provide for the acquisition and development of two parcels of land providing the full 11.5 acres of usable park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive as time goes by, or even worse, could be developed for private uses that are not public park or public recreation in nature. (71) The average South San Francisco family would pay only 5 cents a day for this park expansion. A small price to pay for providing park space for future generations. A true bargain compared to other recreational activities such as going to a movie or a day at the ball game. Imagine a nickel a day, to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. (77) A bond issue is being proposed because that is the only financing method available to the community to achieve this worthy goal. Let's make Orange Memorial Park even better - Vote Yes on ! (33) BALLOT ARGUMENT IN FAVOR OF 5,000,000 BOND ISSUE TO EXPAND ORANGE PARK Orange Memorial Park was dedicated in 1925 in memory of all South San Francisco veterans who gave their lives in defense of our country. The Park has not been added to since that time. The adjacent Droperty owner desires to sell now. The community, through this bond issue, has the opportunity to make an investment for generations to come. (60) The proposed expansion would add 11.5 acres to the existing 21 acres, increasing the size 50%. Since 1925, the City's population has grown ten-fold. The demand on the Park today exceeds the space provided sixty years ago. Softball, baseball, soccer, tennis, bocci ball, swimming, picnics, jogging, and other recreation activities take place in these confined 21 acres. (58) The bond issue would provide for the acquisition and development of two parcels of land providing the full 11.5 acres of usable park space. This would create a true central park extending from Orange Avenue to Chestnut Avenue. If we wait, the land will only become more expensive as time goes by, or even worse, could be developed for private uses that are not public park or public recreation in nature. (71) The average South San Francisco family would pay only 5 cents a day for this park expansion. A small price to pay for providing park space for future generations. A true bargain compared to other recreational activities such as going to a movie or a day at the ball game. Imagine a nickel a day, to enjoy the wide variety of sports, recreational and leisure activities an expanded Orange Memorial Park could provide in our own hometown. (77) A bond issue is being proposed because that is the only financing method available to the community to achieve this worthy goal. Let's make Orange Memorial Park even better - Vote Yes on ! (33) COUNTY CLERK-RECORDER REGISTRATION-ELECTION DIVISION CITY OF SOUTH SAN FRANCISCO SPECIAL MUNICIPAL ELECTION SCHEDULED FOR APRIL 12, 1988 CHARGES FOR ELECTION SERVICES Below are cost figures involving Labor, Service and Supplies incurred in conduct of the City of South San Francisco Special Municipal Election scheduled for April 12, 1988. Labor .............. $350.2!7 Services & Supplies and Electronic Data Processing. . 136.8.4 Total Election Charges. . .$487.11 Office of the Secretary of State March Fong Eu Executive Office 1250 J Street Sacramento, California 95814 (916) 445-6871 April 26, 1988 Dear Fellow Californian: California Elections Code section 5579 requires the Secretary of State to provide copies of the California Ballot Pamphlet to city and county clerks, members, of the legislature, public libraries, public high schools and public institutions of higher learning in California. In compliance with t'his sec- tion, I am pleased to provide you with the enclosed copies of the California Ballot Pamphlet for the June 7, 1988 Primary Election. If additional copies of the pamphlet are needed, please contact your local county clerk or .registrar of voters or my Elections Division Office at (916) 445-0820. If I can be of further assistance, please do not hesitate to contact me. Sincerely, MARCH FONG EU Secretary of State ~ce of the County Cle~ .~-Recorder %W~RREN SLOCUI~ ~¥ 12 Al0:22 COUNTY CLERK-RECORDER COUNTY OF SAN TEo HALL OF JUSTICE AeND RECORDS'REDWOOD BRANCH OFFICE 40 TOWER ROAD, SAN MATEO. CA 9~402 · (415) 573-2081 ELECTION DIVISION MAUREEN GROVER CHIEF DEPUTY May 11, 1988 Mrs. Barbara Battaya, City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Subject: Receiving Station Location for Receipt of Returin & Supplies, Presidential Primary Election, ElectiOn Night, June 7, 1988 Dear Barbara: Confirming our recent telephone conversation, we wish to express our appreciation for the use of your facilities on Election Night, June 7, 1988, for the receipt of returns and supplies from the precinct Inspectors in your area. LOCATION SOUTH SAN FRANCISCO CITY CLERK'S OFFICE - 400 G~and Our representative will report to this location by approXimately 7:30 to 7:45 P.M. and will remain there until he has received all returns from the assigned precincts. If you would confirm the location description and address~ giving the phone number available during evening hours, it Would be helpful to us. A stamped self-addressed envelope is enclosed for your use in returning the attached form. Sincerely, Warren Slocum, County Clerk Olive Bickel, Deputy Clerk Registration-Election )ivision OB:b Enclosure The following location is available for use as a ReCeiving Station Location fQr Election Night, June 7, 1988. SOUTH SAN FRANCISCO CITY CLERK'S OFFICE - 400 Grand Signed ~~<~.,~ ~-' ~- ' ~',~/.~.j_~/._ Phone No. at Receiving station ' - - .~, ~ ,C 7 7-- 5:'~3-/~' Dated ~'--,.,'_c , ,. _ / Office of the County Cle~,l~-Recorder '88 Jlt~20 49:05 WARREN SLOCUM COUNTY CLERK-RECORDER SAN MA.TI I COUNTY ~ALLOFJUST~C~AND RECORD$,REOWOOD C~TY,CA~ORN~A 9~063 ~~ ~,~,~,,__~' ~'~AU~N GROV~ June 16, 1988 Honorable Barbara Battaya, City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Dear Mr~a~taya: Although South San Francisco's Ballot Measure was not voted on, we appreciated the opportunity to once again work with you in the preparation of your Municipal Election scheduled for April 12, 1988. Kindly find enclosed Invoice #10663 in the amount of $487.11 for services rendered by this Department in that regard. Should you have any questions on this statement, feel flree to call our Registration-Election Office at 573-2081 and talk directly with Mr. Tom Patterson. Sincerely, Warren Slocum County Clerk-Recorder WS:st Enclosure OFFICE OF THE '-')UNTY CLERK COUNTY OF SAN MATEO HALL OF JUSTICE AND RECORDS * 401 MARSHALL STREET REDWOOD CITY, CA 94063 · TELEPHONE: (415) 363-4711 · · HOi~ORASLE BARBARA BATTAYA, CITY · City of South San Francisco · 400 Grand Avenue · South San Francisco, CA 94080 CLERK # 10663 JUNE 16 , 19 88 Election services rendered in the conduct of City of South San Francisco Special ~unicipal Election scheduled for April 12, 1988 $467 The law requires that fees shall be paid in advance and accounted for daily by the Clerk. When collection is deferred by this office, it is expected that the courtesy will be appreciated and remittance made promptly. 0 .o ! I ; ~ o 0 · o ~ '88 -7 29 ¥OTING 8AL REGULAR PRECINCTS PRECINC! TYPE !~. 16203~ 001 16203~ POLL PL POLLING PLACE NAME HDCP FREE PDLL PL PHONE REG TBLS CHRS USER ED AND ADDRESS ACC CONTACT PHONE TOTAL FLAGS 16203q -01 , LOMITA PARK SCHOOL ,qPRR Y Y 588-5852 316 200 SANTA' HELENA AV 697-5693 ~6 Z03~-'g0I"--~ZOB ~ ~6Z~"-;OT-' 'F I R E~ AN ~S'-H~ ~C Y-~Y '~ 8;~1'80 372 ............ 618 SAN HATEO AV ~83-7627 SAN BRUNO~ CA 9q066 162030 001 L62030 10/036-Ot CAPUChINO HIGH SCHOOL Y Y 503-9977 103 SAN BRUNO~ CA 9~066 "16Z037 OOI" 16Z037 .............. 16Z037' ;01 ' JOHN HUIR--SCHGOL .............. Y --Y ...... 58q"sqO0 ........... 456 - SPEECH ~OO~ 589-5900 130 CA~BRIDGE LN 162038 OOl 162038 162038 -Oi MONTE VERDE SCHOOL Y Y 877-8838 qO9 ~ULT~PURPOSE RGOH 877~8700 2551 ST CLOUD DR S~N BRUNO~ C~ 9~066 :Jlt~ 162039 001 16203g 16203q -01 HONTE VERDE SCHOOL Y Y 877-8838 37q ~:: mULTI-PURPOSE ROOM 877-8700 ,..! :~: 2551 ST'CEOUD DR ': *1[~.: SAN 8RUNO~ CA qq06b !-j ~,,~ q~O ~ADISON aV ~: SAN BRUNOt CA 9~066 ~' ~ ~?i -16204Z '001 ' '162042 ............. 162042''0I BELLE AIR SCHOOL I~ LIBRARY *§0 3RD AY 1620.3 oo1 1620~3 legO~3-OL BERT[N[ GARAGE Y S88-8299 336 1320 ~ISSION RD 52. 5AN FRANCISCOj CA 9a080 176002 001 176002 1760~Z -OX SUNSHINE GARDENS SCHOOL Y Y 877-878~ 370 1200 ~ILLER AV SO. SAN FRANC[SC~i CA 9~080 '877;880~ .............. 397 877-8700 RUN DATE: b/OJlO~ ELECTION POLLING PLACES RPT EDF-O2q PAGE 8 CLOSE OA/E: 5/0~/~o PRESIDENTIAL PRIMARY ELEC DATE: 6/07/88 VOTING ~AL REGUL~K P~ECINCTS POLL PL POLLING PLACE NA~E HDCP FREE POLL PL PHONE RED TBLS CHRS USER PRECINC1 TYPE ID AND ADDRESS ACC CONTACT PHONE TOTAL FLAGS 176003 001 17600~ 001 176003 176003 -01 SUNSHINE GARDENS SCHOOL Y Y 877-878A 399 ROOM 7 877-8700 1200 HILLER AV ........ SO, SAN FRANCISCO~ CAr 9~080 1760Uq 17600~ -01 ROZZI GARAGE Y 588-§8~6 336 2q7 HOLLY AY '~ ' SU SAN FRANCISCO~ CA gqOBO 176005 001 176005 176005 -01 HILLSIDE SCHOOL MULTI-PURPOSE ROOm JqO0 HILLSIDE BL 50. SAN FRANCISCD~ CA 94080 ~ 176007 001 17~001 176008 001 ll~O0~ · 176009 0ol 176009 1760L0 001 17~010 170006 001 1760u6 176006 -01 MARTIN SCHOOL ........... RO0~ 12'' 3~ SCHOOL ST SO. SAN FRANCJSCO~ CA gq080 877-8700 Y Y 877-3~55 877~8700 a56 176007 -01 LONATJ GARAGE Y ~88-5~37 q57 25q AR~OUR AV ..... SO SAN FRANCISCO~ CA gqOBO 176008 -01 ~ARIIN SCHOOL ROg~ 12 35 SCHOOL ST SO. SAN FRANCISCO~ CA 9qOBO 1760D9 -0~ PENNA GARAGE 313 ASPEN AV SO SAN FRANCISCO~ CA g~080 176010 -01 Sa. SAN FRANCISCO C/TY HALL ........ FOYER LUNCH ROOM aGO GRANO AV ENTER ON MILLER Sa SAN FRANCISCO, CA g~08O Y Y 877-3055 ~60 877-8700 Y Y 877-8518 · L76011 0o1 176011 L7601[ -01 FOXRIDGE SCHaOL Y Y 877-8773 q39 GYM 877-8700 ZSZ5 NEXFORD AV SO SAN FRANCISCOe CA 9A080 176012 00I 170012 176013 001 116013 176012 -01 SO. SAN FRANCISCO CITY HALL FOYER Y Y 877-8518 431 MO0 GRAND AV ENTER ON M[LLER -SO SAN FR~NCf~Ow CA g~OO~ 176013 -0! SPRUCE SCHOOL Y Y 877-8780 ~63 ROO~ Z 877-8700 501 SPRUCE AV SO. SAN FRANCISCO~ CA ~qO~O VOTING 8AL K~GULAR PRECINCTS POLL PL POLLING PLACE NAME HDCP FREE POLL PL PHONE REG TBLS CHRS USER PRECINCT TYPE [0 AND ADDRESS ACC CONTACT PHONE TOTAL FLAGS 176014 001 176014 176014-01 SPRUCE SCHOOL ¥ Y 877-8780 43g ,,..,.,.. Rogr~- Z 877;8700 501 SPRUCE AV SO,, SAN FRANC[SCOt CA gq080 176015 001 176015 176015 -01 PARKWAY JR. HIGH SCHOOL Y Y 877-8{88 471 ..... LIBRARY 877-8700 SO. SAN FRANCISCO, CA ~080 .... 17601b 001 17~016 ............. I75016'=01-- PARKWAY JR;---HIGH-'SCHOOL ............ Y--~Y ~77=8788 613 .......... LIBRARY 877-8700 825 PARK ZIO ~. ORANGE AV ............. ~ULTi=PURPUS~RUO~ ................................... B77~8700 SO, SAN FRANCISCO, CA 9~080 176018 001 17bOl~ 176018-01 CAPPS GARAGE Y 583-1169 ,50 LLZ FIR AV 17b0~9 001 17bOi~ ~76019 -0~ FINK GARAG~ Y 583-02q8 2&4 28 SONOgA AV SO SAN FRANCISCO~ CA gqO80 ZZ4 NORTHWOOD DR 50 5AN FRANCJSCO~ CA 17602L 001 176021 176021 -Ol ROODNDI GARAGE Y 583-0B05 381 ..... iT~OYZ 001 1760Z~ 1760gg -01 NELSON GARAGE Y 588-8Z67 ~6 SO SAN FRANCISCO, CA qqo80 ....... ~T~023---00~'-- ITAO~ ........................... ~023 ~O~'~PUNUEROS~ SCHOO~ Y ......Y ........ B77~8825 ............. 483 NULTI-PURPOSE ROO~ 877-8700 Zq5 PONOEROSA RO .................................................................... 50'~5AN-FRAN'ClSCO,' CA '- 94080 ........................................... 176026 001 lIbo2q 17602~ -01 SO. SAN FRANCISCO FIRE STATION ~4 .Y Y ~ 877-8~4 437 1 4 ........ SO SAN FRANCISCO, CA 9*080 176025 001 ' 176025 .......... ~760~' ~0{ - BADEN HIGH' SCHOOL ' Y Y 877-8??0 ........ 372 qULT I-PURPOSE RO0~ 877-8?00 ............................................................... 5O;--S~N-FRANCISCO¢- CA"- 94080 VOTING BAL REGULAR PRECINCTS PaLL PL POLLING PLACE NAME HDCP FREE POLL PL PHONE REG TSLS CHRS USER PRECINCT TYPE ID AND ADDRESS ACC CONTACT PHONE TOTAL FLAGS /760Z6 001 176026 176026 -0! 'DEL GRANDE GARAGE Y 583-7530 383 3-CARLSBAD CT 583~7530 SO SAN FRANCISCO, CA g4080 1760Z7----0'0! 17~027 17bOZ7 -01-~UNICZPAL--SE~V]-CES--BCDb OPEN ROOM 877-8560 33 ARROYO OR SO"~SA. FRANC,SCQ,'CA 176028 001 176028 [76028 -01 GU[NN GARAGE Y 583-7195 SO SAN FRANCISCO, CA 94080 17bOZg '-OO1 .... 176029 ............... 17602g ~01' HI~ GARAGE ................... Y 50 SAN FRANCISCO~ CA 9~080 XTb030 OOX ~7b030 ]T6030 -Ol ALOERSGATE UN aETHODXST C~C~ Y 87Z-~37 : HALL 583-1702 HUSIC ROO~ 677-8700 ~ZO EL CARPO DR SO'SAN ~FRANC~SCO~ CA 9408~ Y 877-8797 170032 00[ t7bO3g [76032 -Ot ALTA LO~A JR HIGH SCHOOL Y L"IBR-AR~iIb RORNEY ................................. AV SOl SAN FRANCISCO~ CA 9~080 ~7603} OOl ~7b033 ~76033 -O1 EL RAHC~O SCHOOL Y Y 877-8?00 RO0~ 3 877-8700 so. sAa F~ANClSCO, C~ 9*OeO 176034 OOl 176034 .... 17603q ~O1 GILHQRE GARAGE ' ' Y 87I-7[2~ Z666 DUHALLO~ NY 176035 OOL 176035 176035 -01 ALTA LO~A JR HIGH SCHOOL Y LIBRARY 877-8700 .................................................................... 116~RO~NEY AV SO. SAN FRANCISCO, CA 9q080 50 5AN FRANCISCO~ CA 176037 OOL 176037 176037 -01 SERRA VISTA SCHOOL Y Y 877-8823 - ~ULT[=PURPOSE--'ROO~ ........................... 877-8700 SO. SAN FRANCISCO~ CA 9~080 CLOSE DATE: 5/gg/88 PRESlUENIIAL PRIMARY ELEC DATE: 6/07/88 ¥OTING BAL REGULAR PRECINCTS POLL PL POLLING PLACE NAME HOCP FREE POLL PL PHONE REG TBLS CHRS USER PRECINCT TYPE ID AND ADDRESS ACC CONIACT PHONE TOTAL FLAGS 176038' 001 176038 I7603§-~0I-' ~AZZOTTI GARAGE Y 755~8820 383 Z~6 WICKLOW OR SO SAN FRANCISCO~ CA gqOBO 17603q OOL 176039 L76039 -0! ~ARSJLI GARAGE Y 588-§4Z0 369 qlq GRAND AV SO SAN FRANCISCO' CA--gqO80 176040 gUI 176040 I?6OqO -01 ROGER WILLIAMS SCHOOL Y Y 58q-lOB1 q73 ........................................................... SCHOOL-ROOM' 58g-~oBr MAGNOLIA & GRAND AVE SO SAN FRANCISCOv CA 17tO~l 001 1760q1 176041 -0! MATER OOLOROSA HALL Y 877-9878 335 JOqa MILLER AV §83-A131 ~,, S O-SAN -FR ANCTSC O,--C A--ga08 C ..... i ~ Z76042 001 1760~2 1760q2 -01 ALDERSGATE UN METHOOIST CHURCH Y 872-q§37 3qq ..... ~'i~ ................................................................. HALL ............................................................ 583~170Z .................................. ~ 115 EL CAMPO DR SO SAN FRANCISCO~ CA g4080 [~l ~r e~i ~7bO'3 00! 17bO'3 ~760q3 -01 TREASURE ISLAND TRAILER CObRT Y ~ #3 WASHROO~ 9q~-3267 g.' .................................................. L700 EL'CAMJNO RL ~ ,! SO SAN FRANCISCO~ CA 9q080 ~ij ~7'60a-4---00[' --~7~04~ 1T60~'~-~OI---PONOEROSA'-SC'HOOL ......................... Y .... Y ~{/ MULTI-PURPOSE ROO~ 877-8?00 ~L~, _ ............................................... SO;-SAN'FRANCISCO~ CA q4080 ~ 1760~5 001 176045 Z570 WESTBOROUGH BL SOo SAN FRANCISCO, CA 9q080 · {iii /76046 OOL 176046 1760.6 -01 SO SAN FRANC[SCa FIRE STATION aa Y Y 877-Sq6q 390 i~~ 2350 GALNAY PL 877-8950 L~F ...................................................... SO 'SiN-~R~NC[SCO, CA-gq080 ~,{ 17b047 001 1760q7 1760~7 -OX ST AUGUSTINE CHURCH Y 873-Z~8Z Wb5 176045 -01 WESTBOROUGH JR HIGH SCHOOL Y Y 877-88~8 460 ~]~ FACuCT¥-'DININ¢-ROOM ..................................... 877;8700 ................ '°~'? .... - · i~4 3700 CALLAN BLVD ~'~i SO SAN FRANCISCO, CA q4ooz ,.., ' ................................ }700 CALLAN BLV~ ~,.~ SO SAN FRANCXSCO~ CA 94080 Y 873-ZZ8Z ~23 RUN DATE: 6/03/88 ELECTION PALLING PLACES RPT EDF-OZ4 PAGE ],Z CLOSE DATE: 5/09/88 PRESIDENTIAL PRIPARY ELEC DATE: 6/07/88 VOTING BAL PRECINCT TYPE REGULAR PRECINCTS PaLL PL POLLING PLACE NAME HDCP FREE POLL PL PHONE REG TBLS CHRS USER ID AND ADDRESS ACC CONrACT PHONE TOTAL FLAGS 001 1760q9 1760~9 -0]. ' FOXRIDGE SCHOOL y Y 877-8773 36Z .............................................................. GY~ 877~8700 Y Y 877-8838 877-8700 .y .....y. u77~8773 877-8700 ~1~:,~! GYM ii~ ~525 WEXFORD AV !~i ................................... SO; SAN' FRANCISCO~ CA 9q080 t?b05Z 001 176052 [76052 -01 EL RANCHO SCHOOL Y Y 877-87].8 333 · ~ 753 DEL MONTE DR SOe SAN FRANCJSCO~ CA 9*080 · [76053 OOL 176053 L76053 -OL ~ATER OULOROSA HALL Y 877-q878 355 ].04* MILLER AV 583-,13L SO SAN'-FR'ANCISCO~--CA---qaO80--- ~i Z].BOOl 003 ZISOOL 2~8001 -Gl 8URL[NGAME CITY HALL-LOBBY Y Y I*15} 3*8-g858 q3O 501'PRIMROSE RD I~15} '3*2~8931 ............... I!:~ ~URLINGA~E, CA 9qOiO *SO PRIMROSE-ENTER BELLEVUE 8URLINGAME~ CA Og40i 2].8004 003 21800~ Z].8004 -0l FRANKLIN SCHOOL Y Y M P R STAGE Z385-TRQUSOALE-DR BURL[NGAME, CA 18q5 RALSTON AV 1415) ~42-!964 _ .BURLINGA~E~ CA I~*L51 697-59],1. ~08 (4].Si 218006 003 218006 ,2180a6-01 ST PAULe5 EPISCOPAL CHURCH HIGB]E HALL ,15 'EL CARINO REAL' 8URLZNGAME s, CA PROPOSITIONS I00 9G o~¢rKi~et~ mpon~ 5~,675 57~6 3,723,101 42.4 79 ~bn ~ ~d Vm ~ ~ 3,389,234 ~.8 81 szs~~ W~ NO 2~1,~6 28A 82 ~Mi~ Wa~ ~n~ ~ Vm P~ 83 ~ M~ w~ v~ ~ 5~32~ ~.4 ~ 3,~1,525 35.6 and ~lm ~ 5,130,205 58~ 3,~,~ 41.8 J~ Vm ~ s 87 ~TaxmM ~ ~,357 32.3 88 __D~)mitofPubllc 98 hblicScheelFinancing Yele Pet Vote Pet YES 6,135,395 74.5- YES 4,384,806 50.8 HO 2,103,059 25.5 NO 4,249,451 49.2~ 89 o.,e,~sPmd. 99 aear. t.Tax Review Vote Pet Vole Pct YES 5,268,983 57.8 YES 4,655,450 54.9 NO 3,839,259 42.2 HO 3,818,954 45.1 90 A~Vdumian. 100 TrialLawye~_ and Comumer-Spon~ed Replacement Dwellings htnumnee Initiative Veee m Vo~ YES $,737;647 69.0 YlS" 3,649,381 41.0 HO : .2~el~e 31.0 Ho. s,250,~ 59.0 91 ~mkeGoum. 101 ~bnmAuto Vete Pet Vote met YES 5,631,425 70.5 YES 1,161,440 13.3 NO 2,360,325 29.5 NO 7,583,729 86.7 92 C, emmi~ienonJudidal 102 AIDSReposting Pedmmance Initiative Vote Pet Vote Pet YES 5,906,525 74.0 YES 3,027,119 34.3 93 ~mm;, P,,PmYT,, 103 bmWptien Vote Pet S~onsomd Imumnce Initiative YES 5,933,039 70.8 Vote Pet HO 2,445,523 29.2 YES 4,580,818 51.1 NO 4,376,916 48.9 94 'J~(Perm,~o 104 No.h~Aut° YES 5,398,153 65.0 Veee Pct NO 2,909,649 35,0 YES 2~253~91 25.3 HO 6~41,051 74.7 95' Hung~and Hamdm Funding 105 Toxic I)Jl~b~ yeee 9d Initiative YES 3,870,882 45.2 vm Pct HO 4,689,046 54.8 YES 4,574,262 54,4 HO 3,836,650 45.6 96 C.,m.,nla,~eb,a. . Teels 106 V~ee ~ Veee Pet 189 62.3 YES 4,039,697 46.7 NO 4,607,842 53.3 97 4,518,71,6 53.7 HO 3,690,63~ 46.3 ti g Sl SI Sx~ percent of precincts reporting Dukakis 10 states Bush 40 dates 41,006,356 4696 112 electoral votes 47,907,036 54% 426 electoral votes BAY. AREA , VOTED Alameda' Cm~ Cesta Mmi. San Matse Santo Clam PRESIDENTIAL Bush Ddmkis 293,401 157,561 63,316 20,921 176,366 135,002 256,478 52,52~ 84,165 65% 52% 6O% 48% 74% 55% 52% 51% 57% Assembly.. SENATE 142,385 47% 57,671 55% 19,392 45% 144,951 70% 120,203 52% 238,114 49% 45,762 48% 75,428 52% PROP 102 326,678 207,496 78,507 27,159 183,698 162,736 337,250 62,527 103,362 77% ~ 72% 78% 65% 84% 73% 71% 65% PROP 103 176,775 41% 147,372 50% 47,663 47% 23,486 54% 75,540 35% 105,921 47% 234,734 50,294 51% i 76,682 53% **** A13 MEASURE I REGIONAL TRANSIT Yes Ne 47,795 117,687 39,140 29% 32% 24% 31% 26% 29% 42% San Matee Caunty Had.~ Distrkt (Elect 3) 762 of 762 precincts reporting Jean Flodcs' 90,744 Frank Lee'.. '. 85,348 Raymond Farnow* ~ 81,434 J~dy C~ilins ~ ~8,625 Rene Duzac 56,073 David P~woiski 35,421 Sauth San Francisco Unified District (Elect 2) 67 of 67 precincts repo~'ng Lau6e Mmetti' 11,352 Edward Rodondi* 9,135 Shldey Smmulb 4,4~ · 88 IXll 13 ? 3:06 BALLOT PAM T L O~ N , 1988 CERTIFICATE OF SECRETARY OF STATE I, March Fong Eu, Secretary of State of the State of California, do hereby certify that the, foregoing measures will be submitted to the electors of the State of California at the GENERAL ELECTION to be held throughout the State on November 8, 1988, and that this pamphlet has been correctly p~epared in accordance with law. Witness my hand and the Great Seal of thc State in Sacramento, California, this 18th day of AuguSt 1988. MARCH FONG EU Secrellary of State SACRAMENTO 95814 Dear Fellow Californians: This is your California Ballot Pamphlet for the November 8, 1988, General Election. It contains the ballot title, a short summary, the Legislative Analyst's analysis, the pro and con arguments and rebuttals, and the complete text of each proposi- tion. It also contains the legislative vote cast for and against each measure proposed by the Legislature. This pamphlet also contains a statement from each of Califor- nia's five qualified political parties, summarizing its policies and principles. These are provided in the extra space available in this pamphlet to give you, the voters, a clearer understanding of the philosophies of the parties and the candidates who represent them. Many rights and responsibilities go along with citizenship. Voting is one of the most important, as it is the foundation on which our democratic system is built. Read carefully all of the measures and information about them contained in this pam- phlet. Legislative propositions and citizen-sponsored initiatives are designed specifically to give you, the electorate, the oppor- tunity to influence the laws which regulate us all. Take advantage of this opportunity and exercise your rights by voting on November 8, 1988. SECRETARY OF STATE Please note that Proposition 78 is the first proposition for this election. To avoid confusion with past measures, the Legislature ~ ' passed ra law which requires propositions to be numbered consecutively starting with the next number after those used in the November 1982 General Election. This numbering scheme runs in twenty-year cycles. 2 G88 CONTENTS Proposition BOND ACTS 78 Higher Education Facilities Bond Act of 1988 .................................... 79 1988 School Facilities Bond Act .............................................................. 80 New Prison Construction Bond Act of 1988 ........................................ 81 California Safe Drinking Water Bond Law of 1988 ........................... 82 Water Conservation Bond Law of 1988 ................................................ 83 Clean Water and Water Reclamation Bond Law of 1988 ................ 84 Housing and Homeless Bond Act of 1988 ............................................ 85 Library Construction and Renovation Bond Act of 1988 ................. 86 County Correctional Facility Capital Expenditure and Youth Facility Bond Act of 1988 ..................................................................... Pages 4-7 8~11, 114 20-23, ~16-118 24-27, 318-120 32-35, ~21-122 36-39, 122 LEGISLATIVE CONSTITUTIONAL AMENDMENTS 87 Property Tax Revenues. Redevelopment Agencies ........................... 88 Deposit of Public Moneys ......................................................................... 89 Governor's Parole Review ........................................................................ 90 Assessed Valuation. Replacement Dwellings ....................................... 91 Justice Courts. Eligibility .......................................................................... 92 Commission on Judicial Performance .................................................... 93 Veterans' Property Tax Exemption ....................................................... 94 Judges ............................................................................................................. INITIATIVE CONSTITUTIONAL AMENDMENTS AND STATUTES 95 Hunger and Homelessness Funding ...................................................... 96 Communicable Disease Tests .................................................................. 97 State Occupational Safety and Health Plan ......................................... 98 School Funding ............................................................................................ 78-81, 99 Cigarette and Tobacco Tax. Benefit Fund ........................................... 100 Insurance Rates, Regulation ..................................................................... 101 Automobile Accident Claims and Insurance Rates ............................ 102 Reporting Exposure to AIDS Virus ...................................................... 103 Insurance Rates, Regulation, Commissioner ........................................ 98-101, 104 Automobile and Other Insurance ........................................................... 102-105, 105 Disclosures to Consumers, Voters, Investors ....................................... 106-109, 106 Attorney Fees Limit for Tort Claims .................................................... Political Party Statements of Purpose ............................................................. 40-41, g22-123 42-~3, 123 ~ 48-51 52-55 56-59 60~1, 123 66-69, ~23-127 7o-7a, 127 7~77 8~9, ~3, ~3~-137 ~7, 137-13~ I40-144 14~157 7-158 i1~113 159 G88 3 8 Higher Education Facilities Bond Act of 1988 Official Title and Summary Prepared by the Attorney General HIGHER EDUCATION FACILITIES BOND ACT OF 1988. This act provides for a bond issue of six hundred million dollars ($600,000,000) to provide funds for the construction or improvement of facilities of California's public higher education institutions, including the University of California's nine campuses, the California State University's 19 campuses, the 70 districts of the California community colleges, and the California Maritime Academy. The use of funds authorized under this act includes, but is not necessarily limited to, the construction or improvement of classrooms, laboratories, and libraries, and the implementation of earthquake and other health or safety improve- ments. Final Vote Cast by the Legislature on SB 703 (Proposition 78) Assembly: Ayes 66 Senate: Ayes 30 Noes 2 Noes 2 Background California's system of public higher education consists of 135 campuses serving about 1.8 million students. This system includes the iUniversity of California, the Califor- nia State UniversitYr the California community colleges, and the California Maritime Academy. The University of California has nine campuses with a total enrollment of about 153,000 students. This system offers bachelor, master, and doctoral degrees. The uni- versity is also the Primary state-supported agency for research. The California state University system has 19 campuses with an enrollment 6f about 343,000 students. The system grants bachelor and] master degrees. The California community colleges provide instruction to about 1.3 million Students at 106 campuses operated by 70 locally governec~ districts throughout the state. The community collegeslgrant associate degrees and also offer a variety of basic vocational skill courses. The California Maritime Academy provides instruction for students who seek to become licensed officers in the U.S. Merchant Marine. One of six such schools in the country, the academy has an enrollment of about 350 students. The state provides funds for planning, construction, and alterations for b'aildings in the state's system of public higher education. In recent years, these funds have come from lease-purchas~ agreements and general obligation bonds. Proposal This measure authorizes the state to sell $600 million i,n general obligation l~onds to fund facilities for California s public higher education system. General obligation bonds are backed by the state, meaning that the state will use its taxing power to assure that enough money is available to pay off the bonds. Revenues deposited in the state's General Fund wou!d be used to pay the principal and Analysis by the Legislative Analyst interest costs on the bonds. General Fund revenues come primarily from the state corporate and personal income taxes and the state sales tax. The bond money would be used to purchase building sites and certain equipment, construct new buildings, and alter existing buildings. The state also would be autho- rized to use General Fund money for short-term loans to community colleges for the purchase of instructional equipment. The Governor and the Legislature would decide how to spend the bond money. The state's budget for the 1988-89 fiscal year would spend about $350 million from this bond measure (if approved) for projects at various campuses. About $500 million in additional funds will be needed to complete these and other previously approved projects. Fiscal Effect Direct Costs of Paying Off the Bonds. For these types of bonds, the state typically makes principal and interest payments from the state's General Fund over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 7.5 percent, the cost would be about $1.1 billion to pay off both the principal ($600 million) and interest (about $475 million). The average payment for principal and interest would be about $50 million per year. Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated. State Revenues. The people who buy these bonds do not have to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making taxable investments, the state would collect less taxes. This loss of revenue cannot be estimated. Paying Off Loans to Community Colleges. This mea- sure requires that any General Fund money loaned to community colleges be repaid from future revenue from the state's tidelands oil or from money received from the sale of these bonds. 4 G88 Text of Proposed Law This law proposed by Senate Bill 703 (Statutes of 1988, Ch. 44) is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Education Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Chapter 14.3 (commencing with Section 67330) is added to Part 40 of the Education Code, to read: CHAPTER 14.3. HIGHER EDUCATION FACILITIES BOND ACT OF 1988 Article 1. General Provisions 67330. This chapter shall be known and may be cited as the Higher Education Facilities Bond Act of 1988. 67331. The Legislature finds and declares all of the following: (a) California's economic and social prosperity relies on a higher education system that keeps pace with California's growth. In the coming decades, the state's economic prosperity will depend on increas- ing the productivity of the work force and on the ability to compete successfully in the world marketplace. (b) The system of public higher education in this state includes the University of California, the California State University, the California community colleges, and the California Maritime Academy. E~ach of these institutions plays a vital role in maintaining California's domi- nance in higher education in the United States. (c) Over the last several years, studies have been completed by the University of California, the California State University, and the California community colleges to assess their long-term andshort-term capital needs, which studies demonstrate that these needs total, in the aggregate, several billion dollars. (d) The purpose of the Higher Education Facilities Bond Act of 1988 is to assist in meeting the capital outlay financing needs of California 's public higher education system. 67332. As used in this chapter, the following terms have the following meanings: (a) "Committee" means the Higher Education Facilities Finance Committee created pursuant to Section 67353. (b) "Fund" means the 1988 Higher Education Capital Outlay Bond Fund created pursuant to Section 67333. Article 2. Higher Education Facilities Bond Act Program 67333. The proceeds _of bonds issued and sold pursuant to this chapter shall be deposited in the 1988 Higher Education Capital Outlay Bond Fund, which is hereby created. 67334. (a) The committee shall be and is hereby authorized to create a debt or debts, liability or liabilities, of the State of California pursuant to this chapter for the purpose of funding aid to the University of California, the California State University, the California community colleges, and the California Maritime Academy ]or the construction, including the construction of buildings and the acquisi- tion o, Jr related f~'xtures, renovation., and reconstruction.., o~f ofiacilities, for the acquisition of sites upon whtch these factltttes are to be constructed, for the equipping of new, renovated, or reconstructed fqcilities, and to provide funds for payment of preconstruction costs, including, but not limited to, preYiminary plans and working drawings. (b) Moneys made available under Section 67340 or 67342 may be used to provide short-term loans to community colleges for the purchase of instructional equipment. Those loans shah be repaid from the first moneys available in the Capital Outlay Fund for Public Higher Education beginning in the 1989-90fiscal year, or_from proceeds of the bonds. Article 3. Fiscal Provisions 67335. (a) Bonds in the total amount of six hundred million dollars ($600,000,000), not including the amount of an.y refunding bonds issued in accordance with Section 67343, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to be used to reimburse the General Obligation Bond Expense Bevolvinq Fund pursuant to Section 16724.5 of the Government Code. The bonas shall, when sold, be and constitute a valid and binding obligation of the State O[eCalifornia, and the full faith and credit of ~he State of California is reby pledged .for the punctual payment of both principal of and interest on, the bonds as the principal and-ihterest become due and payable. (b) Pursuant to this section, the Treasurer shall sell the bonds authorized by the committee at such different times as necessary to service expenditures required by the apportior~ments. 67336. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed a~ provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) _of Part 3 of Division 4 of Title 2 of the Government Code), and all qf the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter a~ though set forth in full in this chapter. For purposes of the State Gener, ql Obligation Bond Law, the State Public Works Board is designated the "board." 67337. The committee shall authorize the issuance of bonds under this chapter only to the extent necessary to fond the apportionments that are expressly authorized by the Legislature in the annual Budget Act. Pursuant to that legislative direction, th~ committee shall deter- mine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order ilo carry out the actions specified in Section 67334 and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 67338. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds eac.h year, and it is the duty of all officers charged by law with any duty i, regard to the collection of the revenue to do and ?erform each and every act which is necessary to collect that additional sum. : 67339. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an atnount that will equal the total of the following: (a) The sum annually necessary to pay the Principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum which is necessary to carry out the provisions of Section 67340, appropriated without regard to fiscal years. 67340. For the purposes of carrying out this chapter, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized to ~e sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, together with interest at the rate paid on moneys in the Pooled Money Investment Account, from money received from the sale of bonds for the purpose of carrying out this chapter. 67341. All money deposited in the fund that is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 67342. The board may request the Pooled Money Investment Board for a loan from the Pooled Money Investment Account, in accordance with Section 16312 qf the Government Code, and may execute those documents required b~t the Pooled Money InOestment Board to obtain and repay the loan. The loan shall be depoMted in the fund for the purpose of carrying out the provisions of thi~ chapter. The amount of the loan shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to b~ sold for the purposes of this chapter. 67343. Any bonds issued and sold pursuant to this chapter may be refunded by the issuance and sale or exchange of refunding bonds in accordance with Article 6 (commencing with ~ection 16780) of Chapter 4 of Part 3 of Division 4 o£ Title 2 of thel Government Code. The approval by the electors of this state of the issuance and sale of bonds under this chapter includes approval o£ the issuance and sale or exchange of any bonds issued to refunc~ eitfier those bonds or any previously issued refunding bonds. G88 8 Higher Education Facilities Bond Act of 1988 Argument in Favor of Proposition 78 California has esiablished one of the world's most · ADAPT TO NEW TECHNOLOGY. Rapid teChno- respected systems of public higher education. The Uni- logical development, a direct result of our successful versity of California,[ the California State University, and higher education system, has increased the need for the California Community Colleges have combined to state-of-the-art instructional and research laborato- produce a system that guarantees every high school ries. Such facilities are essential if our students are to graduate an opportunity to pursue a college education learn the very latest in scientific knowledge. according to the student's preparation and personal goals. · STRENGTHEN THE STATE'S ECONOMY. A ma- jor component of a strong economy is an educated These colleges and 0niversities, with 135 campuses and more than 1.5 millio~a students, contribute to California's workforce. Far more education is now required for continuing prosperity by preparing well-trained individ- employment especially in the scientific and techno- uals for positions in !a wide variety of careers, including logical fields that are of increasing economic impor- ~ tance in our society. The projects funded by this teaching, medicine, tt law, business, science, agriculture, measure will enable our colleges and universities to public service, and the helping professions, train the teachers, scientists, doctors, and engineers The construction of new facilities at our colleges and who will attract industry and jobs to the state. universities has not kept pace with the demands of recent Individual construction projects to be funded from this times. Moreover, many existing facilities need major bond measure are reviewed and approved by the Gover- renovations to meet State safety standards and to increase nor and the State Legislature. Previously, public higher handicapped access[ to campuses. Until recently, the education institutions depended on income from tideland state's total funding for public higher education construc- oil revenues to pay for needed construction projects. The tion had steadily decflined, leaving our campuses with an recent decline in oil prices has sharply reduced the enormous backlog o~: projects urgently needed to main- amount of money available for these needs. Recognizing rain the quality of California's public higher education this problem, the Governor and the Legislature autho- programs, rizedthis bond issue as an alternative wa, y of financing Proposition 78 would provide $600 million, over two badly needed improvements at the state s colleges and years, for projects needed to: universities. · ACCOMMODATE INCREASES IN STUDENT EN- Proposition 78 will maintain and enhance the high ROLLMENTS. New and renovated classrooms, Ii- quality of California's public colleges and universities. braries, and laboratories are urgently needed on our WE URGE YOU TO VOTE YES ON PROPOSITION campuses to keep pace with California's continuing 78. growth and enrollment increases on our campuses. The state's population is increasing by approximately 600,000 new residents each year; and 150,000 new students enter oi~r elementary and secondary schools each year as w~ll. Without a carefully planned and cost-effective e~pansion to meet rising enrollments, our colleges and universities will become hopelessly overcrowded aR this growing pool of new students moves on to college. GARY K. HART State Senator, 18th District Chairman, Senate Education Committee GEORGE DEUKMEJIAN Governor State of California DAVID P. GARDNER President University of California Rebuttal to Argument in They're at it again. The politicians want to raise more funds for higher edt~cation. What this really means is that a small group--thole who will actually use the educa- tional system--will ,benefit, while a large group---Cali- fornia taxpayers--wlll foot the bill. We urge you to vote NO~ ~ Why should taxpayers be forced to subsidize the edu- cation of a small elite group (teachers, scientists, doctors, engineers, businessi people and lawyers). Those who benefit from higher education should assume responsibil- ity for its cost, directly or through voluntary subsidy (such as scholarship funds~. Currently, all taxpayers, including single people, elderly people, and childless couples, are forced to pay the bill. Favor of Proposition 78 Businesses, which also benefit from subsidized educa- tion, have long expected taxpayers to pay to train their employees. The time has come for these businesses to contribute directly to this educational training. Only two years ago, voters approved $400 million in bonds for this same purpose; now the politicians want $600 million more! It is time to stop these unfair subsidies, which benefit the few at the expense of the many. Vote NO on Proposition 78. SAM GROVE Libertarian Candidate for U.S. Congress, 5th District MARK R. PICKENS Libertarian Candidate for State Senate, 3rd District 6 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Higher Education Facilities Bond Act of 1988 Argument Against Proposition '/8 Existing college classrooms sit empty many hours a week and most of the summer. We wouldn't need more classrooms if each room was used eight hours a day, five days a week, 48 or 50 weeks a year, the same schedule most people work. Bonds are a bad way to buy buildings and equipment. For $600 MILLION worth of classrooms and equipment we will pay over 20 years $480 MILLION in interest, for a total of over $1 BILLION! "Pay as you go" would cut the cost almost in half. There is no surplus in the state budget this year. The $54 MILLION needed to pay off these bonds will have to come from a tax increase or a cut somewhere else in future budgets. Would you cut health, welfare, or salaries; or raise taxes? In 1986 the voters approved $400 MILLION in bonds for similar purposes. The universities and colleges have a wish list of several BILLION. If we approve this bond issue they will be back for more next election. Bond payments must be made for the next 20 years regardless of other needs or available state revenues (mostly from the income and sales taxes). If a disaster strikes--drought, a major earthquake, a depression--hun- dreds of millions in emergency assistance will be re- quired, at the same time that state revenues from income and sales taxes drop because of the disruption of the state economy. We need to maintain flexibility to meet new 78 priorities as they arise, not tie our hands with 20-year commitments to pay off bonds. Payments of principal and interest on outstanding bonds totaled $515 MILLION in the 1987-88 budget. Bonds already authorized but not yet iissued will add $372 MILLION when sold. The nine bond issues on this ballot would add $295 MILLION, for a total of $1.1 BILLION each year. On a pay-as-you-go basis $1.1 BILLION would finance all of the projects in the nine bond issues, schools, prisons, housing, etc., in three years., By placing capital expenditures orl the ballot as bond issues the Legislature postpones major costs to future years, leaving more room in the Current budget for boondoggles with low priority or lacking popular support. The Legislature trots out the sacre& cows on the ballot where the voter can see them, while hiding in the fine print of the budget the white elephants such as the legislative slush fund. Interest income from state bonds is exempt from federal and state income taxes, a lc~ophole for wealthy investors to avoid paying their fair share of taxes, thus shifting the tax burden to working people. By voting for these bonds you are voting for a higher share of federal and state taxes for you. Vote NO on the Higher Education bonds! WILLIAM McCORD Betired State Administrator Rebuttal to Argument Against Proposition 78 The opponent's argument against Proposition 78 ig- nores the critical construction needs of California's col- leges and universities, and the benefits they provide to our economy and all Californians. Proposition 78 will help our colleges and universities: · Keep pace with increasing student enrollments. · Renovate existing buildings, build new classrooms and libraries. · Modernize laboratories to keep up to date with scientific development. · Make critical earthquake, health and safety improve- ments. The projects to be financed by Proposition 78 were developed after careful planning and study by not just the universities, but also the Governor and the Legislature. Bond funds will be used to construct buildings which will last well into the 21st century, long after the bonds are repaid. Bond funds are commonly used by government and private industry to finance long-term construction needs. Bond financing is particularly sensible given the low interest rates currently available. California voters have repeatedly approved bond issues over the years for high- priority long-term state needs. To ~trgue that the state should not use bonds to finance lo~g-term construction projects is like saying that individuals should not use mortgages to finance their homes Proposition 78 will not diminish California's financial stability. It will fund urgently needed improvements to our college campuses and maintain the quality of Califor- nia's higher education programs. VOTE YES ON PROPOSITION 78. GARY K. HART State Senator, 18th District Chairman, Senate Education Committee W. ANN REYNOLDS Chancellor California State University DAVID MERTES Chancellor California Community Colleges Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by alay official agency G88 7 79 1988 School Facilities Bond Act Official Title and Summary Prepared by the Attorney General 1988 SCHOOL FACILITIES BOND ACT. This act provides for a bond issue of eight hundred million dollars ($800,000,000) to provide capital outlay for construction or improvement of public schools. Final Vote Cast by the Legislature on SB 22 (Proposition 79) Assembly: Ayes 70 Senate: Ayes 33 Noes 1 Noes 0 Background The State School Building Lease-Purchase Program provides most of th~ money used by local public school districts to construct, reconstruct, or modernize school facilities. In order to receive money under this program, school districts mu~t (1) meet specified eligibility re- quirements, and (2) Icontribute matching funds, based on the maximum amoUnt of fees which they are allowed to collect from developers, as discussed below. School districts also may raise funds for school facilities construction and reconstruction in three other ways. These are: 1. The Mello-Roos Community Facilities Act of 1982. Since January 1, 1983, school districts have been authorized to £orm special "community facilities" districts. Subject to the approval of two-thirds of the voters, these special districts can sell bonds to raise revenue to build new, or rehabilitate existing, school facilities. The bonds are paid off by a tax levied upon the real properzy located within the special district. 2. Local General Obligation Bonds. School districts are generally authorized to incur bonded indebted- ness for school ifacilities construction purposes, sub- ject to a two-thirds voter approval. However, only majority voter approval is required for bonds issued for the purpose of repairing, reconstructing, or replacing public school buildings determined to be structurally un~afe for school use. 3. Developer FeeS. Since January 1, 1987, school dis- tricts have bean authorized to impose developer fees. The maximum fee is currently $1.53 per square foot on new and other construction of residential buildings, and 25 cents per square foot on new construction of commercial or industrial buildings. These fees can be used only for construction or reconstruction of school facilities. School Facilities Funding Needs. The total number of additional school facilities needed to meet current enroll- ment in the state is not known. As of May 25, 1988, however, applications submitted by school districts for state funding of new school construction projects totaled approximately $2.9 billion. In addition, applications for state funding to reconstruct or modernize school facilities totaled approximate_y $1.1 billion. At the time this anal- ysis was written, June 1988, there was $800 million in state money available to fund these requests. 8 ' Analysis by the Legislative Analyst Proposal This measure authorizes the state to sell $800 million in general obligation bonds to pay for (1) the construction, reconstruction, or modernization of elementary and sec- ondary school facilities through the State School Building Lease-Purchase Program, (2) abatement of hazardous asbestos in school facilities, and (3) air-conditioning equipment and insulation materials for year-round schools. General obligation bonds are backed by the state, meaning that the state will use its taxing power to assure that enough money is available to pay off the bonds. The state would use General Fund revenues to pay the principal and interest costs of the bonds. General Fund revenues come primarily from the state corporate and personal income taxes and the state sales tax. At least $580 million raised from the bond sales would be used for the construction of new school facilities. The remaining $220 million would be allocated initially as follows: · $100 million could be used for the reconstruction or modernization of existing school facilities. · $100 million could be used for the identification, assessment, and abatement of hazardous asbestos materials. · $20 million could be used to buy and install air- conditioning equipment and insulation materials for eligible school districts with year-round school pro- grams. If any of these allocations exceed the amount necessary for these purposes, the extra amount may be used for any of the above purposes, including new construction. Fiscal Effect This measure will have a fiscal effect whether it is approved or rejected by the voters. A. Fiscal Effect if Approved by the Voters · Direct Costs of Paying Off the Bonds. For these types of bonds, the state typically would make prin- cipal and interest payments from the state's General Fund over a period of about 20 years. If all of the bonds were sold at an interest rate of 7.5 percent, the cost would be about $1.4 billion to pay off both the principal ($800 million) and interest (about $630 million). The average payment for principal and interest would be about $70 million per year. G88 · Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated. · State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making taxable invest- ments, the state would collect less taxes. This loss of revenue cannot be estimated. B. Fiscal Effect if Not Approved by the Voters · Local Matching Contribution Would Be Eliminated. If this measure is not approved by the voters, existing law provides for termination of :he requirement that matching contributions be made by school districts participating in the State School Building Lease- Purchase Program. The loss -of local matching funds would result either in (1) fewer schools being con- structed under this program, 6r (2) potential, un- known additional state cost ~ replace the local matching funds, if the same level of school construc- tion is maintained. ~ Text of Proposed Law This law proposed by Senate Bill 22 (Statutes of 1988, Ch. 42) is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Education Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. ~ PROPOSED LAW SECTION 1. Chapter 21.9 (commencing with Section 17698) is added to Part 10 of the Education Code, to read: CHAPTER 21.9. 1988 SCHOOL FACILITIES BOND ACT 1 7698. This chapter may be cited as the 1988 School Facilities Bond Act. 17698.10. The State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code) is adopted for the purpose of the issuance, sale, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued by this chapter, and the provisions of that law are included in this chapter as though set out in full in this chapter. All references in this chapter to "herein" shall be deemed to refer both to this chapter and that law. 17698.15. As used in this chapter, and for the purposes of this chapter as used in the State General Obligation Bond Law, the following words shall have the following meanings.. (a) "Committee" means the State School Building Finance Commit- tee created by Section 15909. (b) "Board" means the State Allocation Board. (c) "Fund" means the State School Building Lease-Purchase Fund. 17698.20. For the purpose of creating a fund to provide aid to school districts of the state in accordance with the provisions of the Leroy F. Greene State School Building Lease-Purchase Law of 1976 (Chapter 22 (commencing with Section 17700)), the purposes authorized under Section 17698.96, and of all acts amendatory thereof and supplementary thereto, and to provide funds to repay any money advanced or loaned to the State School Building Lease-Purchase Fund under any act of the Legislature, together with interest provided for in that act, and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code, the commit- tee shall be and is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the State of California, in the aggregate amount of eight hundred million dollars ($800,000,000), not including the amount of any refunding bonds issued in accordance with Section 17698.93, in the manner provided herein, but not in excess thereof 17698.25. All bonds herein authorized, which shall have been duly sold and delivered as herein provided, shall constitute valid and legally binding general obligations of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal and interest thereof There shall be collected annually in the same manner and at the same time as other state revenue is collected such a sum, in addition to the ordinary revenues of the state, as shall be required to pay the principal and interest on the bonds as herein provided, and it is hereby made the duty of all officers charged by law with any duty in regard to the collection of the revenue, to do and perform each and every act which shall be necessary to collect the additional sum. On the several dates of maturity of the principal and interest in each fiscal year, there shall be transferred to the General Fund in the State Treasury, all of the money in the fund exclusive of funds transferred pursuant to subdivision (f) of Section 6217 of the Public Resources Code, not in excess of the principal of and it~terest on the bonds then due and payable, except as herein provided fbr the prior redemption of the bonds, and, in the event the money so returned on the dates of maturity is less than the principal and internist then due and payable, then the balance remaining unpaid shall be returned to the General Fund in the State Treasury out of the fund a4 soon thereafter as it shall become available. 1 7698.30. All money deposited in the fund under Section 17732 and pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code shall be available only for transfer to the General Fund, as provided in Section 17698.25. When transferred to the General Fund, the money shall be applied as a reimbursement of the General Fund on account of principal an~ interest due and payable or paid from the General Fund on the earliest issue of sch°ol building bonds for which the General Fund has not been fully reimbursed by the transfer of funds. 17698.35. There is hereby appropriated from the General Fund in the State Treasury for the purpose of this chapter, an amount that will equal the following: (a) The sum annually as will be necessary to pay the principal of and the interest on the bonds issued and sold?ursuant to the provisions of this chapter, as the principal and interesd become due and payable. (b) The sum as is necessary to carry out S~ction 17698.40, which sum is appropriated without regard to fiscal yeatrs. 17698.40. For the purposes of carrying out the provisions of this chapter, the Director of Finance may, by written order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be c~eposited in the fund to be allocated by the board ,in accordance with ]this chapter. Any moneys made available under this section to the board shall be returned by the board to the General Fund, together with ititerest at the rate paid on moneys in the Pooled Money Investment AcCount, for moneys received from the sale of bonds sold for the purpose of carrying out this chapter. 17698.50. Upon request of the board fromitime to time, supported by a statement of the apportionments made anc~ to be made under Chapter 22 (commencing with Section 17700), the aommittee shall determine whether or not it is necessary or desirable to Issue any bonds authorized under this chapter in order to fund the apportionments, and, if so, the amount of bonds to be issued and sold. The entire amount authorized by this chapter shall become available for apportionment on December 1, 1988. The Treasurer shall sell the bonds so determined at such different times as necessary to service expenditures tequired by the apportion- ments. 17698.55. The board may request the Pooled Money Investment Board for a loan from the Pooled Mone~ Investment Account, in accordance with Section 16312 of the Go~ernment Code, and may execute those documents required by the pooled Money Investment Board to obtain and repay the loan. The lo~n shall be deposited in the fund for the purpose of carrying out the prOVisions of this chapter. The amount of the loan shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to be sold for the purposes of this chapter. Continued on page 114 G88 9 79 1988 School Facilities Bond Act Argument in Favor of Proposition 79 California voters thave another opportunity--without raising taxes--to con inue the work of meeting the state's school facilities crisi~ by approving this companion mea- sure to Proposition '/5 enacted by the voters in June. California is facing a severe and growing problem in providing adequate, isafe and modern public school facil- ities for our children. Some public schools are already overcrowded. Over 140,000 new students are entering California public schools each year. California must add 300 new classrooms ~ach month to house these students, reduce existing overcrowding and prevent double ses- sions. Our public school~ are also aging. Well over half of our schools are 25 years ~ld or older. Roofs, heating systems, electrical systems and other structural repairs are needed to ensure the safety lof existing facilities and protect our investment in schoo! buildings. In addition, many! of California's 7,000 schools contain asbestos. Asbestos is a major health hazard. Our teachers and children spend 6 to 8 hours a day in these schools. The asbestos hazard must be corrected to protect their health. Funding for school construction in California is a partnership between local communities and the state. Using bonds to pay for schools is a safe and financially sound California tradition. Your "YES" vote on Proposi- tion 79 will not raise taxes! Your "YES" vote will fulfill the state's commitment to safe schools and will help to relieve overcrowding in rapidly growing districts. Your "YES" vote on Proposition 79 will help build new schools, repair old facilities and reduce the school asbestos health hazard. Please join us in voting "YES" on Proposition 79. GEORGE DEUKMEJIAN Governor MARIAN BERGESON State Senator, 37th District JACKIE SPEIER Member of the Assembly, 19th District Rebuttal to Argument in Asbestos causes cancer. Overcrowding prevents learn- ing, incites classroom misbehavior that culminates in discourteous spectacles at graduation ceremonies, and creates an inviting htmosphere for gang violence that makes the mind-numbing consumption of drugs an un- derstandable-though deplorable--habit. These conditions are outrageous! Yet educators and our Governor refuse to i~elease children from unsafe schools despite State Department of Education figures that show facility needs will NOT be met during the next five years even with approval of these bond issues at each election. Does someone have a secret plan for restoring lost years to children's lives? Declaring that public schools might be good someday only denies opportunity to children who need c_uality education now. A recent (Los Angeles) Times Mirror poll revealed that by a significant margin voters favor a voucher plan giving Favor of Proposition 79 all parents a choice between public and private schools. When public schools do not educate students, whose interest is served by forcing pupils to attend them? Instead of increasing bonded debt to trap more chil- dren in an environment of failure, frustration, and fear, we should offer parents a choice. Available education funds average almost $4,700 per student. That is enough to buy quality schooling. Who benefits from the intellectual and financial waste produced by compulsory assignment to government schools? Children don't. But tenured, tax-supported, unionized, bureaucratically protected, politically power- ful educators do. And we ignore the consequences. Send politicians a message to free children from an unproductive school monopoly. Please vote NO. ROGER MAGYAR State Director, Parents CARE 10 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 1988 School Facilities Bond Act 79 Argument Against Proposition 79 1) Five months ago we charged $2 billion worth of purchases. This election we are being urged to sign for $3 billion more. Did the bank place a limit on our credit card, or can we just go on imitating the carefree spenders in Washington, D.C.? 2) Why should taxpayers STATEWIDE pay the costs of constructing LOCAL schools? In June of 1986, voters approved a proposition that allows local communities to authorize bonds for new school construction. If taxpayers in local communities are not willing to tax themselves to build schools, why do our legislators and Governor insist that someone else should pay for it? Overburdened members of the middle class and senior citizens living in retirement should not be obligated to provide schools in distant parts of the state. They should only have to pay their fair share of costs for local schools. This proposition does not assure construction money for schools in YOUR community. It raises funds for communities SOMEWHERE in the state. Sacramento decides where "somewhere" is. 3) There is a better and much less expensive way to rescue children from overcrowded conditions. If public educators are so concerned about the damage suffered by students who are forced to endure crowded classrooms, instead of demanding more money for their education empire, why don't they allow parents to take a child's share of education money and search elsewhere for less crowded schools? We pay an enormous cost for maintaining the public school monopoly. A 1986 Gallup Poll reported that 27 % of public school parents said that with $000 in aid they would remove their children from public school and send them to private school. If one out of four pupils accepted $600 to stop using a service that costs many times that amount, taxpayers could save at least $3 billion evertt year!! And that is just the beginning. (a) Those transfers mean we no longer have crowded public school classes: so, we save bi~lions more in con- struction costs (and bonded indebtedness). (b) Class size decreases. (c) A portion of the billions saved can be used to enrich programs for those 'in l~Ublic schools or to increase transfer opportunities for !children from low- income families. (d) The remainder can be used for highway construction, facilities to increase our water supplies, or lower taxes. ~ Sound far-fetched? Only if you ~!sten to the public education empire. Children trappe~t in crowded class- rooms give educators the perfect excuse to demand more money from taxpayers. The system is bad for children, but it works very well for tenured educators. Those students provide enough tax-funded ransom each year to maintain almost half a million scho0_ employees. A vote against this bond issue records your support for fiscal restraint, local control of education, and greater opportunity for students now held in the grip of an insulated school bureaucracy. It is tin te for us to approach education more intelligently instead..f more expensively. Please vote NO. ROGER MAGYAR State Director, Parents CARE Rebuttal to Argument Against Proposition 79 · A "yes" vote on Proposition 79 will not raise taxes. · Over I million new pupils will enroll in California public schools over the next six years, swelling kin- dergarten through grade 12 enrollments to 5,500,000. · Proposition 79 will help your community to build new schools, repair old schools or remove hazardous asbestos. · School districts are prohibited by law from using lottery funds for construction. Lottery funds are being used as the voters intended: to improve class- room instruction. · Proposition 79 ensures the most cost-effective use of taxpayers' dollars for building schools. Proposition 79 uses the same financing mechanism preferred by private industry to fund its building and maintenance projects. · Local school communities are doing their part to pay for new classrooms but cannot possibly meet the need alone. A "yes" vote on ProPosition 79 continues the successful state/local partnel:ship that has helped build schools throughout California for generations. · Everyone benefits from an efficient and effective public education system. Our ihvestment in public schools promotes a healthy economic future for all Californians. · Using bonds to build schools foe the next generation of Californians is a fair deal for !taxpayers. Vote YES on Proposition 79. GEORGE DEUKMEJIAN Governor BILL HONIG State Superintendent of Public Ina truction MARIAN BERGESON State Senator, 37th District (}88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 11 Prison Construction Bond Act of 1988 NEW PRISON COZ seventeen million d prisons, county jails, Official Title and Summary Prepared by the Attorney General ISTRUCTION BOND ACT OF 1988. This act provides for a bond issue of eight hundred ~llars ($817,000,000) to provide urgently needed funds to relieve overcrowding in the state's and Youth Authority facilities through new construction. Background . In recent years thbre has been a large increase in the number of people s~nt to the state's adult prisons and youth correctional ihstitutions and to county jails. This trend is expected tO continue. These facilities were not designed to house this increase. Adult Prison System. In 1981 the prison system had room to house 23,00~ inmates. By June 1988 the state had expanded the system to house 43,000 inmates. At that time, however, the system held about 67,000 inmates. By July 1993 the Department of Corrections expects an inmate population o_-' about 93,000. The state is addressing the prison capacity problem in several ways. In mo~t prisons, the department is housing two inmates in ceils intended to house only one. The department has als0 converted gymnasiums, classrooms and other space int6 temporary dormitories. In addition, since 1981, the state has committed $2.5 billion from three sources to increase the prison capacity to 51,000 beds. About $1.2 billion of the money for the new state prisons has come from prison construction bond funds approved by the vo~ers and about $100 million from the state's General Fund. The state has financed the remain- ing amount, about $1.2 billion, using lease-revenue bonds. These lease-revenu~ bonds are repaid from the state's General Fund, and late not subject to approval by the voters. In addition to these steps, the department plans to build more prisons, to improve existing prisons, and to complete new prisons now under construction. These steps will raise the total capacity to 70,000 inmates. The department expects this work to cost almost $1.7 billion. The department plans to fund this effort with money from this bond measure, a future bond measure and lease-revenue bonds. Youth Correctional Institutions. The state's existing youth correctional institutions were built to house about 5,900 wards. In June !988, there were about 9,000 wards in these institutions. By June 1992, the Department of the Youth Authority expects this number to increase to 9,800. In order to house this additional population, the state currently is building facilities to house about 500 wards and plans to construct additional facilities for 2,400 wards. The department expects these additional facilities to cost about $260 million. The department also plans to over- crowd all institution~, existing and planned, by about 12 percent. 12 Final Vote Cast by the Legislature on SB 468 (Proposition 80) Assembly: Ayes 66 Senate: Ayes 33 Noes 1 Noes 0 Analysis by the Legislative Analyst County Jails. The Board of Corrections estimates that this bond measure, combined with existing state bond measures and money contributed by the counties, would permit renovation and expansion of county jail facilities to house 65,000 inmates statewide by 1990. Even with these steps, the Board of Corrections states there will be a shortage of space for an estimated 11,500 inmates in county jails at that time. By 1995, the board estimates that the statewide average daily jail population will increase to about 105,000 people. Proposal This measure authorizes the state to sell $817 million of general obligation bonds for acquisition, construction, renovation, remodeling, and deferred maintenance of state youth and adult correctional facilities and county jails. The money would be deposited in the 1988 Prison Construction Bond Fund, created by this measure. Gen- eral obligation bonds are backed by the state, meaning that the state will use its taxing power to assure that enough money is available to pay off the bonds. The state will use General Fund revenues to pay the principal and interest costs on the bonds. General Fund revenues come primarily from the state corporate and personal income taxes and the state sales tax. This measure: · Allows, with specified notification to the Legislature, proceeds from the bond sale to be transferred to prison construction bond funds approved by the voters in 1981, 1984, and 1986. · Provides for $40 million to be available to the Board of Corrections to fund certain county jail projects and to pay for administrative costs associated with prior county jail bond measures. In 1984 when the Legis- lature passed the County Jail Capital Expenditure Bond Act, it was expected that the $40 million would become available from interest earnings on those bond funds and other bond funds already approved by the voters. Those interest earnings did not be- come available because of changes in federal tax laws. This bond measure would replace those lost interest earnings. The proceeds remaining in the 1988 Prison Construc- tion Bond Fund would be used to buy land and construct, remodel, and maintain youth and adult correctional facilities, as determined by the Governor and the Legis- lature. The Legislature already has approved (contingent G88 upon passage of this bond measure) (1) $147 million for construction of a prison in northern Los Angeles County and (2) about $43 million in the 1988 Budget Act for maintenance and alteration of existing prisons and for administrative costs associated with the prison construc- tion program. Fiscal Effect Direct Cost of Paying Off the Bonds. For these types of bonds, the state typically would make principal and interest payments from the state's General Fund over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 7.5 percent, the cost would be about $1.5 billion to pay off the principal ($817 million) and interest (about $650 million). The average payment would be about $70 million per year! Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, thisl measure may cause the state and local gove!;nments to pay more under other bond programs. These costs cannot State Revenues. The people who not required to pay state income tax earn. Therefore, if California taxpay, instead of making taxable investmeJ collect less taxes. This loss of reve~ mated. Text of Proposed Law This law proposed by Senate Bill 468 (Statutes of 1988, Ch. 43), as amended by SB 406 (Statutes of 1988, Ch. 386), is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Penal Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SEC. 2. Chapter 15 (commencing with Section 7400) is added to Title 7 of Part 3 of the Penal Code, to read: CHAPTER ]5. NEW ?RISON CONSTRUCTION BOND ACT OF 1988 7400. This chapter shall be known and may be cited as the New Prison Construction Bond Act of 1988. 7401. The State General Obligation Bond Law is adopted for the purpose of the issuance, sale and repayment of, and otherwise providing with respect to, the bonds authorizedto be issued by this chapter, and the provisions of that law are included in this chapter as though set out in full in this chapter except that, notwithstanding anything in the State General Obligation Bond Law, the maximum maturity of the bonds shall not exceed 20 years from the date of each respective series. The maturity of each respective series shall be calculated from the date of that series. 7402. There is in the State Treasury the 1988 Prison Construction Fund, which fund is hereby created. The proceeds of the sale of bonds authorized by this act shall be deposited in the fund, and may be transferred upon request of the Department of Corrections and upon approval of the Director of Finance, to the New Prison Construction Fund established by Section 7102, the 1984 Prison Construction Fund established by Section 7202, or the 1986 Prison Construction Fund established by Section 7302, or any combination thereof If the moneys are so transferred, 'fund" means the New Prison Construction Fund, 1984 Prison Construction Fund, or 1986 Prison Construction Fund, or any combination thereof, as is appropriate. At least 30 days prior to requesting a transfer as authorized by this section, the Department of Corrections shall notify the chairpersons of the fiscal committees in each house of the Legislature, and the Chairperson and the Vice Chairperson of the Joint Legislative Budget Committee. 7403. The 1988 Prison Construction Committee is hereby created. The committee shall consist of the Controller, the Treasurer, and the Director of Finance. That committee shall be the "committee," as that term is used in the State General Obligation Bond Law, The Department of Corrections is the "board "for the purpose of the State General Obligation Bond Law and this chapter. 7404. The committee is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the State of California, in the aggregate principal amount of eight hundred seventeen million dollars ($817,000,000), exclusive of refunding bonds, in the mann~er.?r, ovided i~. this chapter. That debt or debts, liability or liabilities, stuart De createct for the purpose of providing the fund to be used for the object and work specified in Section 7406. 7405. The committee may determine whether or not it is necessary or desirable to issue any bonds authorized under this chapter, and if so, the amount of bonds then to be issued and sold. The committee may authorize the Treasurer to sell all or any part of the bonds herein authorized at such time or times as may be fixed by the Treasurer. 7406. (a) Except asprovided in subdivi§ion (b), the moneys in the fu_nd shall be used for the acquisition, construction, renovation, remod- eling, and deferred maintenance of state youth and adult correctional facilities. (b) Of the moneys in the fund, forty million dollars ($40,000,000) is hereby appropriated to the Board of Corrections to fund those projects entitled to be funded under subdivision (c) of Section 3 of Chapter 444 .e estimated. 9uy these bonds are on the interest they ~rs buy these bonds its, the state would rue cannot be esti- of the Statutes of 1984, as amended, to the extez t that those projects have not received full funding and for any costs a~sociated with the sale of bonds and any administrative costs incurredlby the Board of Correc- tions in the administration of the County Jail Capital Expenditure Bond Acts of 1981 and 1984 and the Cou~tty Correctional Facility Capital Expenditure Bond Act of 1986. (c) Notwithstanding subdivision (b) of Section 11 of Chapter 1519 of the Statutes of 1986 or any other provision of]law to the contrary, and subject to the annual Budget Act appropriations by the Legislature, administrative costs shall not exceed 1 ~ percent of the amount allocated f~O~er any costs incurred by the Board of Corrections in the administration the County Jail Capital Expenditure Bond ~qcts of 1981 and 1984 and County Correctional Facility Capital Expenditure Bond Act of 1986. 7407. (a) All bonds herein authorized, which shall have been duly sold and delivered as herein provided, shall constitute valid and legally binding general obligations of the State of Callfornia, and the full faitl~ and credit of the State of California is hereby pledged for the punctual payment of both the principal thereof and in]terest thereon. (b) There shall be collected annually in thd same manner and at the same time as other state revenue is collected st~ch a sum, in addition to the ordinary revenues of the state, as shall be required to pay the principal of and interest on those bonds, and it is hereby made the duty of all officers charged by law with any duty i~ regard to the collection of that revenue to do and perform each and ~very act which shall be necessary to collect that additional sum. I (c) All money deposited in the fund which has been derived from premiums or accrued interest on bonds sold shall be available for transfer to the General Fund as a credit to expenditures for bond interest. (d) All money deposited in the fund puro~uant to any provision _of law requiring repayments to the state whi&h are iCinanced by the proceeds of the bonds authorized by this charter shaIl be available for transfer to the General Fund. When transferred to the General Fund that money shall be applied as a reimbursemer~t to the General Fund on account of the principal of and interest on the bonds which has been paid from the General Fund. 7408. Notwithstanding Section 13540 of thc Government Code, there is hereby appropriated from the General Fund in the State Treasury for the purpose of this chapter such an amount a~ will equal the following: (a) That sum annually as will be necessary to pay the principal of and the interest on the bonds issued and soldipursuant to this chapter. (b) That sum as is necessary to carry out ithe provisions of Section 7409, which sum is appropriated without regt~rd to fiscal years. 7409. For the purpose of carrying out t]~i$ chapter, the Director of Finance may by executive order authorize t~e withdrawal from the General Fund oran amount or amounts not ta exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out thie chapter. Any amounts withdrawn shall be deposited in the fund anti shall be disbursed by the committee in accordance with this chapter. Ai~y money made available under this section to the board shall be retuened by the board to the General Fund from moneys received from theisale of bonds sold for the purpose of carrying out this chapter. ThoS~ withdrawals from the General Fund shall be returned to the General Fund with interest at the rate which would otherwise have been earned by those sums in the Pooled Money Investment Account. 7410. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out the provisions of this chapter. The amount of the request shall not exceed the amount ~f the unsold bonds which the committee Continued on page 114 G88 13 ~E} Xouo~ [~!o~o Xu~ Xq Xomnoo~ .raj po~iOOtlO uooq ~ou OA~tt ptre s.~oq~n~ oql jo suo!u!do atD oa~ o~t~d s!tD ua p~u!.~d sluotun~.W ~,'[ 09 uoB!sodoJ8 jo JOA%I · sqlnoA AI!o .touu.t OlrAp, OUI al poI!eJ srq mo:iS.dS [ruouranpo luo~ UU.~OAO2 s,r!u.xoj!irD osnrooq--sloo.qs oq3 ~u.tz!.to.aol s~rr~ oar o.xoq~ 'sox · (,,s~n.xp ua .trax,, s,luotuU.to^o~ ×q o^!suodxo oprm o.m qa.tqax) sl!qrq .Ltoql laod~ns ol llPl pub lrOls ol OArq sla.tppr ~n.zp osnraoq--om.ua o.totu s! a.toql 'sox · IrgOlI! suo.qor alta.ual .mo jo o.~om ~U.DlrtU ,iq SlrU.tm.uo alu! oldood o.~otu uinl al polar a^rq Slr!a.tjjo luom -mOAO9 'saroX ual lsrI oql u! e.tu.tq!lrD al pOAOUI OArq SUOIOJ I!AO JO spursnoql jo suol lrq~ o^o!1oq lou ap aAA · sa.qs.qrls oql ql.tax ~uo.~ax si ~u!qlotu(Is .~o 'oidood oql ql!ax i~uo:~ :~u!qlomos s.~ o.~oql -~oql!2I 'pO!.~od .maX-ual r .~OAO %L~15 SaXO.~ SUOIOJ poi~oIIr JO .xoqmnU oql oI!q,v, % Ii5 XlUO saxo.~lt uo.quindod oql uoqax ltuo.~ax ~tl!qlomos s! o.~oq,L · molsXs ,,oa.qsn.f,, poI!eJ s,~!u.~oj!irD jo ames oql jo ~.~otu oas pu~ ,,soX,, O1OA al p[uaJU oq 'puolsuI 'ON oloa 01 p[mju oq l,uoG 'puoq uos~d olels oa[suodxo X~oa ~ JO I*A0addu u~ O1 SO[10~l Oa~OS ~u~sn oar oluo~*aoeS u[ su~o~l[lod 'iunsn sV u! luomng~V al I~llnqo~ al olq[ssod U o~em iF~ spuoq osoq& 'muxojq~D m luql zo~so[l[i[oej uos[~d iuuo~l[pp~ pl[nq bi 08 uo[usodoxd Xq pop[Aoxd spunj o~1 o~,~ lsnm o~ '~Buindod uos[ad oql ~uu~mH sxop~o ponss[ o~u~ slxnoo o~i 'sol~ls xo~lo 6~ uI · JJ*lS puu saoa[jjo ieuo[loox~oo ano pue suoz~lp ~u~p[q,-~uI 'so~uunmmo ano jo Xloj*s o~1 · oj lel[~ si oxns, om puoq s~l jo o~us~d 'xo~u,p lu~lsuoo u[ JJ*lS pu~ sxoo[jjo i~uo[looaxoo sno0~xnoo xno ~uPuid 'popmoxoxo~o Xlsno~xos ll[lS o~ suo[lnl[lsu~ s,u[moju~D · suotoJ polo[~ -uoa ~'9~ lnoqu xiuo osno~ al qtnq oar suos[ad oluls ano 'xoao~oH 'smuI ~nol 'mou jo lu~moozojuo ~uoxls o~1 al onp ~'~L lsomlu al ~'Ig moaj posuoxau[ su~ suos[~d oluls aha u[ suoioJ jo aoqmnu o~1 sa~oX ual lsud o~1 uI 05 uoB!sodoJd jo .IOA~j u! luouInlitav gi¢6I jo lov puofl uo!lon.qsuo3 uos!. d 08 New Prison Construction Bond Act of 1988 80 Argument Against Proposition 80 Proposition 80 asks for $817 million in bonds for the acquisition, construction, and renovation of state adult and youth correctional facilities. We urge you to vote NO. Voters approved $500 million in bonds for the same reason in November 1986, only two years ago. We wonder what the politicians and bureaucrats have used this much money for in such a short amount of time. Instead of building more prisons, we must completely reevaluate the criminal "justice" system. California has a higher percentage of its residents behind bars than almost any other political subdivision in the world, yet violent crimes are on the upswing. Is it the goal of the politicians to hide from this problem by locking up more and more people? We hope not. We believe that the people of California are threatened because of improper priorities on the part of law enforce- ment. The crime rate continues its spiraling climb due to the government's "war on drugs." Cracking down on bulky, hard-to-conceal marijuana merely drove a drug- craving population to cocaine and "crack" use. Outlawing drugs has raised prices to astronomical levels, forcing addicts to rob innocent citizens to support their habits. A person may spend hundreds of dollars a day for chemicals which cost only a few cents to make. The profits for drug dealers are so high that there is a great deal of violence involved in protecting their "markets" and "turfs." This is a clear parallel to the Prohibition-era gangsters of the 1920's. An obvious solu- tion to at least half the crime in California would be to decriminalize drugs and thus put the drug dealers out of business by making their occupation lunprofitable. The only people who should be sent to prison are those convicted of violating the rights of other people. This group would include murderers, rapists, thieves, defraud- ers, etc. The purpose of prison should not just be deten- tion, however. Criminals must be made responsible for their actions by paying restitution tO their victims--and to the taxpayers for their room and board while in prison. Currently it costs more to keep people in prison than to house them in luxury condos. To solve this problem, in many parts of the country, governments are contracting out prison responsibilities to private companies. Since free enterprise is involved, the businesses have a motiva- tion to keep down costs while providing an acceptable service. It would seem a reasonable istep to sell Califor- nia's existing prisons to economically efficient private companies and turn over all real criminals to their care and control. Innovative reforms are needed, not just more of the same. California's bonded indebtedness rises with each election due to the massive amounts of bond measures presented for voter approval. Now it is time to say NO to more of this debt. Vote NO on Proposition 80 and vote NO no all the other bond measures On this ballot. TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KlM J. GOLDSWORTHY Southern Vice Chairman, Libertariqn Party of California Candidate for U.S. Congress, 30th l~istrict WILLIAM J. FULCO Libertarian Candidate for U.S. Conkress, 27th District Rebuttal to Argument Against Proposition 80 The State of California has continued to vigorously pursue a prison construction program that has allowed us to open fourteen new prisons, containing nearly 19,000 new beds for convicted felons. EVEN WITH THIS TREMENDOUS BUILDING EF- FORT OUR PRISON SYSTEM IS STILL 158% OVER CAPACITY, PROVIDING THE CONSTANT POTEN- TIAL FOR PRISON VIOLENCE AND COURT- ORDERED RELEASES OF DANGEROUS AND VIO- LENT CRIMINALS. If Proposition 80 does not pass, there will be no money to continue the prison construction program; since Janu- ary of this year the prison population has increased by almost 200 convicted felons a week, and is predicted to reach 180% of capacity by 1993, or almost 100,000 inmates! WE MUST GUARANTEE THAT OUR LAW EN- FORCEMENT AGENCIES' EFFORTS TO STOP THE DRUG- AND GANG-RELATED VIOLENCE ARE NOT THWARTED BY OUR INABILITY TO PROVIDE SUF- FICIENT PRISON SPACE FOR THESE CRIMINALS. Is $3 a year for each member of your family worth it to you to remove convicted felons fromi your neighborhood and put them in secure state prisons sO they won't be able to terrorize you and your family? We !think it's a wise and safe investment. We urge you to vote YES for continued public safety by voting YES on PropOsition 80. GEORGE DEUKMEJIAN Governor ROBERT PRESLEY State Senator, 36th District Chairman, Joint Legislative Committee on Prison Construction and Operatibns LARRY STIRLING Member of the Assembly, 77th District Chair, Assembly Committee on Putilic Safety G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by an), official agency 15 California Safe Drinking Water Bond Law of 1988 O££ieial Title and Summary Prepared by the Attorney General CALIFORNIA SAFI~ DRINKING WATER BOND LAW OF 1988. This act provides for a bond issue of seventy-five million dollars ($75,000,000) to provide funds for improvement of domestic water systems to meet minimum drinking water standards. Final Vote Cast by the Legislature on AB 1439 (Proposition 81) Assembly: Ayes 70 Senate: Ayes 33 Noes 3 Noes 0 Background Since 1976, the stake has made loans and grants through the California Safe Drinking Water Program to help pay for improvements to local drinking water systems in order to meet state health standards. The state has sold general obligation bonds to raise this money. All but about $44 million pf the $350 million authorized by previous bond acts iwill be spent or committed by No- vember 1988. The Department iof Water Resources administers the Safe Drinking Water Program in cooperation with the Department of Hca!th Services. Proposal This measure authorizes the state to sell $75 million of general obligation }~onds to make low-interest loans and grants for local drinking water systems. The Department of Water Resources would use the money from the sale of the bonds for loans Jo public and private water suppliers and grants to public agencies to bring drinking water quality up to state health standards. The loans and grants could be used for building, improving, or repairing water systems to meet drinking water standards and for im- provements to save !water. General obligatioh bonds are backed by the state, meaning that the state will use its taxing power to assure that enough moneY is available to pay off the bonds. Revenues deposited !in the state's General Fund would be used to pay the principal and interest costs on these bonds. General Fungi revenues come primarily from the state corporate and !personal income taxes and the state sales tax. Loans and Grants. At least $45 million of the bond money would be available for loans. First priority for the loans would go to water suppliers whose facilities pose the most critical public health problems. The maximum loan to any water supplier would be $5 million, unless the Legislature raises tl~is limit. The interest rate on these loans would be subsi~lized by an amount equal to one-half of the interest rate that the state woUld pay on the bonds. Thus, the state's interest costs would exceed the interest that could be charged on the loans. Although the remaining $30 million also could be used for loans, the measgre would allow the Department of 16 Analysis by the Legislative Analyst Water Resources to provide up to $25 million for grants to public agencies that supply drinking water for that portion of the cost of a project that the public agency is not capable of repaying. The maximum grant to any public agency would be $400,000, and the Legislature would have to approve each grant. No more than $6 million of the bond money could be used for studies to identify ways of improving local drinking water systems. Administrative and Legal Costs. The measure would allow up to $3.8 million of the bond money to be spent for administrative costs of the Departments of Water Re- sources and Health Services to make the loans. These costs would be repaid from fees charged to the loan recipients. In addition, up to $1.1 million of the bond funds could be used to pay legal costs of the Attorney General. The Department of Water Resources and the Attorney General also could spend up to $1.3 million of the loan repayments to cover ongoing administrative and legal costs over the life of the loans. Fiscal Effect Net Cost of Paying Off the Bonds. The bonds autho- rized by this measure probably would be paid off over a period of about 35 years, and would be a responsibility of the state's General Fund. The total cost of the bonds would be about $200 million, consisting of $75 million for principal and $125 million for interest. However, because the loans would be repaid (with a subsidized rate of interest), the net state cost would be about $110 million, or an average of about $3 million per year. (The net state cost would consist of $60 million for the bonds used for grants and about $50 million for the interest rate subsidy on the loans, plus ongoing adminis- trative and legal expenses.) This estimate assumes that all of the bonds would be sold at an average interest rate of 7.5 percent, and that both the bonds and the loans would be paid off over the same 35-year period in effect under the current Safe Drinking Water Program. Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated. G88 State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making other taxable inx~estments, the state would collect less taxes. This loss of irevenue cannot be estimated. ~ Text of Proposed Law This law proposed by Assembly Bill 1439 (Statutes of 1988, Ch. 45), as amended by Assembly Bill 1720 (Statutes of 1988, Ch. 297), is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Water Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Chapter 16 (commencing with Section 14000) is added to Division 7 of the Water Code, to read: CHAPTER 16. CALIFORNIA SAFE DRINKING WATER BOND LAW OF 1988 Article 1. General Provisions 14000. This chapter shall be known and may be cited as the California Safe Drinking Water Bond Law of 1988. 14001. The Legislature hereby finds and declares all of the follow- ing: (a) The State Department of Health Services has discovered toxic chemicals in 126 of California 'S large public drinking water systems. (b) Many of the chemical contaminants in California's drinking water supplies are known or suspected of causing cancer, birth defects, and other serious illnesses. (c) New monitoring programs for small public water systems are expected to identify many new toxic contamination problems. It is unlikely that these problems can be solved without financial assistance from the State of California. 14002. The Legislature further finds and declares that the protec- tion of the health, safety, and welfare of the people of California requires that water supplied for domestic purposes be at all times pure, wholesome, and potable, and that it is in the interest of the people that the State of California provide technical and financial assistance to the end that the people of California are assured a safe, dependable, and potable supply of water for domestic purposes and that water is available in adequate quantity at sufficient pressure for health, clean- liness, and other domestic purposes. 14003. The Legislature further finds and declares that it is the intent of the Legislature to provide for the upgrading (?f domestic water supply systems to assure that all domestic water supplies at least meet minimum domestic water supply standards established under Chapter 7 (commencing with Section 4010) of Part I of Division 5 of the Health and Safety Code. 14004. As used in this chapter, the following terms shall have the following meanings: (a) "Committee" means the Safe Drinking Water Finance Commit- tee created by Section 14052. (b) "Cost-per-connection" means the total amount of .funds in grants or loans, or combination thereof, to be provided by the depart- ment to a supplier for any project, divided by the number of service connections in the water system. (c) "Department" means the Department of Water Resources. (d) "Domestic water system "means a system for the provision to the public of piped water for human consumption, if the system has at least five service connections or regularly supplies water to at least 25 individuals. The term includes any water supply, treatment, storage, and distribution facilities under the control of the operator of the system. (e) "Fund" means the California Safe Drinking Water Fund created pursuant to Section 14010. (f) "Supplier" or "supplier of water" means any person, partner- ship, corporation, association, or other entity or political subdivision of the state which owns or operates a domestic water system. (g) "Federal assistance" means funds available, or which may become available, to a supplier either directly or through allocation by the state from the federal government as grants or loans for the improvement of domestic water systems. (h) "Treatment works" means any devices or systems used in the treatment of water supplies, including necessary lands, which render water supplies pure, wholesome, and potable for domestic purposes. (i) "Project" means proposed facilities for the construction, improve- ment, or rehabilitation of the domestic water system, and may include water supply, treatment works, and all or part ora water distribution system, if necessary to carry out the purpose of this chapter. (j) "Public agency" means any city, county, city and county, district, joint powers authority, or other political subdivision of the state which owns or operates a domestic water system. For purposes of this chapter, Chapter 10.2 (commencing with Section 13810), Chapter 10.5 (commencing with Section 13850), Chapter 10.6 (commencing with Section 13880), and Chapter 10. 7 (commencing with Section 13895) a G88 political subdivision of the state may be any ~ublic agency. Article 2. California Safe Drinking [Water Program 14010. The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the California Safe Drinking Water Fund, which is hereby created. 14011. (a) Notwithstanding Section 13540 Of the Government Code, an aggregate amount of seventy-five million ddllars ($75,000,000) of the moneys in the fund are hereby continuously al~propriated and shall be used for the purposes set forth in this sectionqnd Section 14029. (b) The department may enter into contraats with suppliers having authority to construct, operate, and maintain ldomestic water systems, for loans to suppliers to aid in the constructiO~ of projects which will enable the supplier to meet, at a minimutn, safe drinking water standards established pursuant to Chapter 7 (cbmmencing with Section 4010) of Part 1 of Division 5 of the Health and Safety Code. (c) Any contract entered into pursuant to this section may include provisions as agreed bu the parties thereto, !and the contract shall include, in substance, aYl of the following provisions: (1) An estimate of the reasonable cost of the project. (2) An agreement by the department to loan to the supplier, during the progress of construction or following completion of construction as agreed by the parties, an arrwunt which equals the portion of construc- tion costs found by the department to be eligible for a state loan. (3) An agreement by the supplier to repay the state over a period not to exceed 50 years, (A) the amount of the loarg (B) the administrative fee as described in Section 14022, and (C) ir~terest on the principal which is the amount of the loan plus the administrative fee. ' (4) An agreement by the supplier, (A) to prqceed expeditiously with, and complete, the project, (B) to commence operation of the project upon completion thereof, and to properly operate and maintain the project in accordance [bith the applicable p~ovisions of law, (C) to apply for, and make reasonable efforts' to secure, federal assistance for the project, (D) to secure approva?of the department and of the State Department of Health Services before applyin~for federal assistance in order to maximize and best utilize the amounts of that assistance available, and (E) to provide for payment of tile supl3lier's share of the cost of the project, if any. (d) Bond proceeds may be used for a grant program in accordance with this chapter, with grants provided to suppliers that are political subdivisions of the state that are otherwise unable to meet minimum safe drinking water standards established oursuant to Chapter 7 (commencing with Section 4010) of Part 1 of Division 5 of the Health and Safety Code. The total amount of grant~ made pursuant to this chapter shall not exceed twenty-five million dollars ($25,000,000). (e) Notwithstanding any other provision, the proceeds of any bonds authorized to be issued under the California Sa)Ce Drinking Water Bond Law of 1976 (Chapter 10.5 (commencing with Section 1~850)), the California Safe Drinking Water Bond Law! of 1984 (Chapter 10.2 (commencing with Section 13810)), and the Galifornia Safe Drinking Water Bond Law of 1986 (Chapter 10. 7 (commencing with Section 15895)) which are unissued and uncommittedi on the effective date of this chapter, shall be used for loans and igrants to suppliers in accordance with the terms, conditions, and purposes of this chapter. (f) The Treasurer shall determine the intdrest rate to be paid on loans issued under the Safe Drinking Water Boi~d Law of1976 (Chapter 10.5 (commencing with Section I3850)), as required under Section 15867, equal to the average interest rate, compOted by the true interest cost method, paid by the state on general]obligation bonds sold pursuant to that chapter up to the effective d~te of this chapter. 14012. (a) The department may make stat~grants to suppliers that are political subdivisions of the state, from moneys in the fund available for that purpose pursuant to subdivision (d) of Section 14011, to aid in the construction of projects which! will enable the public agency to meet, at a minimum, safe drinking~water standards estab- lished pursuant to Chapter 7 (commencing with Section 4010) of Part 1 of Division 5 of the Health and Safety Code. A grant may be made by the department only upon the specific approval of the Legislature. (b) Any contract for a grant entered into pursuant to this chapter may include provisions as agreed by the parties thereto, and the contract shall include, in substance, all of the2following provisions: (1) An estimate of the reasonable cost of tt~e project. (2) An agreement by the department to grdnt to the public agency, during the progress of construction or follou~ing completion of con- struction as agreed by the parties, an amount Which equals the portion of construction costs found by the department] to be eligible for a state grant. Continued on page 114 17 $1 California Safe Drinking Water Bond Law of 1988 Argument in Favor Vote yes on PropOsition 81, the California Safe Drinking Water Bond Law oF 1988. Ensuring safe dri~qking water and the public health is a fundamental responsibility of the state. Citizens have recognized this need and responsibility in the past with their overwhelming approval of drinking water bond issues in 1976, 1984 ~and 1986. Despite these effbrts, we still have safe drinking water needs. The Department of Health Services' priority list to distribute bond funds, including funds under the recent 1986 bond issue, h~s applications totaling approximately one billion dollarsi These applications far exceed the funds currently available. This means that significant numbers of Californians will continue to drink polluted water that fails to meet federal and state public health standards. The Saf~ Drinking Water Bond Law of 1988 will address this urgent problem. California's econgmic growth as well as our quality of life depends upon the availability of safe drinking water for all of our citizens. The 1988 Safe Drinking Water Bond Law will assist local communities in modernizing their water systems an¢. meeting direct health threats by bringing their drinking water up to primary drinking water standard levels. This bond law will provide a total of $75 million in grants and loans. Grants will be provided of Proposition 81 only to eligible public agencies and the total grant amount will be capped at $25 million out of the entire bond issue. Grants and loans will be made on the basis of immediate health-related problems certified by the De- partment of Health Services. Support for this bond law is widespread and bipartisan. It is supported by the Association of California Water Agencies, the Health Officers Association of California, the California Municipal Utilities Association, and the League of Women Voters. The Department of Health Services continues to add community water suppliers to its priority health hazard list as new sources of contamination are discovered and as new drinking water standards are established. This effort deserves your support. While we will not fully solve California's drinking water problems with this bond law, it will help us meet our most immediate needs. The safety of our communities and the health of our children deserve no less. Support safe drinking water for all Californians. Vote YES on Proposition 81. BILL LEONARD Member of the Assembly, 61st District JACK O'CONNELL Member of the Assembly, 35th District Rebuttal to Argument in The supporters of this measure are convinced that the state government must be in charge of water programs, and that voters must give a blanket seal of approval to all potential water prOjects. We disagree. Voters have no Way of knowing whether each of the local projects to be funded by this bond measure is necessary or cost-effective--or just a boondoggle. Local water districts could present their own proposals to local voters for approva!. People in a community are better informed about the merits of each project. If approved, the bonds would b~ paid off by the taxpayers who would directly benefit, no~ taxpayers statewide. Voters in other counties have no idea who is polluting the water and who should pay the costs of providing safe drinking water. The politicians i~ Sacramento support bond measures as a painless way of financing popular programs. Buying a Favor of Proposition 81 stereo or a refrigerator with a credit card is painless too--until the bill arrives. Taxpayers (and their children and grandchildren) will be stuck paying the bill for 20 years, a painful proposition indeed. Don't vote "yes" because you are afraid of unclean water. Vote NO to show your support for financial responsibility and a desire for an alternative. Vote NO on Proposition 81. JERRY R. DOUGLAS Director, Topanga-Las Virgenes Resource Conservation District TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Libertarian Party of California Candidate for U.S. Congress, 30th District 18 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 California Safe Drinking Water Bond Law of 1988 Argument Against Proposition 81 Proposition 81 asks for $75 million in bonds for the construction, improvement, and rehabilitation of domes- tic water supplies~ We urge you to vote NO. Voters approved $150 million in bonds for similar water projects in the November 1986 election, only two years ago. We wonder what the politicians and bureaucrats have done with all that money in the meantime. In any event, the time has come to start examining private alternatives to the rapidly failing government water system in California. The huge growth industry in bottled water shows conclusively that people no longer trust the quality of water, and they don't trust the government systems that provide it. Privatization of water supplies is a good alternative. In France, for example, private companies are the major suppliers of water. It is no coincidence that French firms are dominant internationally in research and develop- ment, in equipment manufacture, and in the manage- ment and provision of water services. One-fourth of the water in the United States is supplied by private, investor-owned companies. Hawaii's water is almost completely privately supplied. And the nation's largest single private water system is right here in San Jose, where the 122-year-old San Jose Water Company provides 90% of the city's water to 200,000 hookups. In England, where the federal government owns all 81 domestic waterworks, Prime Minister Margaret Thatcher has proposed a public stock offering to privatize that entire system. Other money-wasting,i publicly run institu- tions in England have already been privatized, with much success. What officials in England, France, and San Jose have realized is that private water firms are more efficient and economical than government agencies. Private owners have significant incentives to keep Costs down by moni- toring the behavior of managers and employees and supplying what consumers demandi No one can claim that government agencies and their employees ever try to save money. California can enter a new era of extended free enter- prise, and residential water customers can enjoy lower rates, if this bond measure is rejected. A serious shift to privatization is the way to go. Vote 1~O on Proposition 81. JERRY R. DOUGLAS Director, Topanga-Las Virgenes ReSource Conservation District TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Liberta~an Party of California Candidate for U.S. Congress, 30th District Rebuttal to Argument The argument against Proposition 81 misses the point. Voting for Proposition 81 would help alleviate a health problem as it exists today, and does not prevent us from finding alternative solutions tomorrow. However, to bury our heads in the sand and think of how our water system should be run will not meet our challenge of providing clean drinking water to millions of Californians right now. Currently the state maintains a list of approximately 2,000 water systems that need to improve their water systems, and are interested in financing to help them make these improvements. These represent a total of about $1 billion of financial need. Often funding through commercial lenders or local municipal bonds is not available. Against Proposition 81 The state can continue to make ~ source of financing available, as it has since 1976, through bond issues. The 1986 Safe Drinking Water Bond Law made available $100 million for local water system improvements As of June 1988, the state has already received iapphcat~ons totaling over $91 million for these funds. Vote YES on Proposition 81 so that California's small communities, served by either public or private systems, have financial means to construct badly needed improve- ments to protect public health. BILL LEONARD Member of the Assembly, 61st District JACK O'CONNELL Member of the Assembly, 35th District G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by amy official agency 19 82 Water Conservation Bond Law of 1988 Official Title and Summary Prepared by the Attorney General WATER CONSERVATION BOND LAW OF 1988. This act provides for a bond issue of sixty million dollars ($60,000,000) to pravide funds for a local water projects assistance program, water conservation programs, and groundwater recharge facilities. Final Vote Cast by the Legislature on AB 1715 (Proposition 82) Assembly: Ayes 70 Senate: Ayes 33 Noes 2 Noes 0 Analysis by the Legislative Analyst Background The State Department of Water Resources is charged with ensuring that there will be enough water to meet the state's needs. The department also provides assistance for water conservation and groundwater recharge pro- grams, which make better use of existing water supplies. Since 1984, voters have approved the sale of $85 million of general obligation bonds for water conservation and groundwater recharge projects. About $77 million of those funds are exp4cted to remain available by Novem- ber 1988. The Department of Water Resources, however, is reviewing applications totaling $215 million for these funds. [ Voters also approved a measure in 1960 which, among other things, authorized $130 million in general obligation bonds for local water supply projects. All of this $130 million is expected lo be committed by November 1988. Water Conservation and Groundwater Recharge. Water conservation projects typically include repair or replacement of leaky water lines and canals, or of ineffi- cient agricultural irrigation systems. Groundwater re- charge facilities typically include ditches, pits, stream- beds, or wells, into Which water is placed and seeps into the groundwater supply. The water is pumped out when needed. Proposal This measure authorizes the state to sell $60 million of general obligation bonds for low-interest loans to local agencies to construct groundwater recharge and water conservation projects, and for loans to local water agen- cies for water suppl~ projects and facilities. The measure also would make minor changes in the interest rate charged on loans provided under two previous water conservation and Water quality bond acts and in the administration of bond funds under those acts. General obligation bonds are backed by the state, meaning that the state will use its taxing power to assure that enough money is available to pay off the bonds. Revenues deposited in the state's General Fund would be used to pay the principal and interest costs on these bonds. General Fund revenues come primarily from the state corporate and !personal income taxes and the state sales tax. The Department of Water Resources would use the $60 million as follows: 1. Water Conservation and Groundwater Recharge Loans--S40 Million. The department would use $40 million to provide low-interest loans to local agencies for projects to improve water conservation, such as lining agricultural ditches, and for projects to increase the groundwater supply. The interest rate on these loans would be subsidized by an amount equal to one-half of the interest rate the state would pay on the bonds. Thus, the state's interest costs would exceed the interest that could be charged on these loans. 2. Local Water Project Loans--S20 Million. The de- partment would use $20 million for a program to provide loans to local agencies to develop additional supplies of water. Eligible projects would include, for example, water delivery systems, such as canals, or dams, and reservoirs. The interest rate on these loans would equal the interest rate the state would pay on the bonds. The measure would limit the amount of loans to $5 million for any single project. The measure also would require all loans to be approved by the Legislature, and would set the term of the loans at up to 20 years. 3. Administrative and Legal Costs. The measure al- lows up to $3 million of the bond funds (included in the $60 million above) to be spent for the department's administrative costs. These costs would be repaid from fees charged to loan recipients. In addition, up to $900,000 of the bond funds could be spent for legal costs of the Attorney General. The department and the Attorney General also could spend up to $1.4 million of the loan repayments to cover ongoing administrative and legal costs over the life of the loans. Fiscal Effect Net Cost of Paying Off the Bonds. The bonds autho- rized by this measure probably would be paid off over a period of about 20 years, and would be a responsibility of the state's General Fund. The total cost of the bonds would be about $118 million, consisting of $60 million for principal and $58 million for interest. However, because the loans would be repaid (with a subsidized rate of interest), the net state cost would be about $24 million, or an average of about $1.2 million per 20 : G88 year. (The net state cost would consist of $21 million for the interest rate subsidy on the loans, and $3 million for administrative and legal costs and related interest pay- ments on the bonds.) This estimate assumes that all of the bonds would be sold at an average interest rate of 7.5 percent, and both the bonds and the loans would be paid off over the same 20-year period. Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more interest under other bond programs. These higher interest costs cannot be estimated. State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making taxable investments, the state would collect less income taxes. This loss o~ revenue cannot be estimated. Text of Proposed Law This law proposed by Assembly Bill 1715 (Statutes of 1988, Ch. 46), as amended by Assembly Bill 1720 (Statutes of 1988, Ch. 297), is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law amends and adds sections to the Water Code; therefore, existing provisions proposed to be deleted are printed in ~tr~!~c~',:t typc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Chapter 4.7 (commencing with Section 12879) is added to Part 6 of Division 6 of the Water Code, to read: CHAPTER 4.7. WATER CONSERVATION BOND LAW OF 1988 Article 1. General Provisions 12879. This chapter shall be known and may be cited as the Water Conservation Bond Law of 1988. 12879.1. The Legislature finds and declares as follows: (a) There is a lack of local water projects in certain areas of the state where the demands of a growing population could, exceed water supplies which could threaten the public health and impede economic and social growth. (b) It is in the interest of the state to provide financial assistance to localagencies for the development of local water resources necessary to meet requirements for domestic, agricultural, and other uses. (c) The participation of the state and the State Water Resources Development System in the construction and operation of local water projects in those areas is desirable to further the development, control, and conservation of the water resources of the state. (d) Voluntary, cost-effective capital outlay water conservation pro- grams can help meet growing demand for clean and abundant water supplies. (e) Recharging groundwater basins is an effective way to maximize the availability of scarce water supplies throughout the state through the efficient management of recharge and extraction activities in groundwater basins, and by reversing the effects of historical overdraft. 12879.2. As used in this chapter, the following terms have the following meanings.. (a) "Committee" means the Water Conservation Finance Committee created pursuant to 12879.9. (b) "Department" means the Department of Water Resources. (c) "Fund" means the 1988 Water Conservation Fund created pursu- ant to 12879.3. (d) "Local agency" means any city, county, city and county, district, joint powers authority, or other political subdivision of the state involved in water management. (e) "Eligible project" means any dam, reservoir, or other construction or improvement by a local agency.for the diversion, storage, or primary distribution of water, or facilities for groundwater extraction, primarily for domestic, municipal, agricultural, industrial, recreation, fish and wildlife enhancement, flood control, or power production purposes. An eligible project also means any reservoir, pipeline, or other construction or improvement by a local agency for the storage or distribution of reclaimed water for reuse. (f) "Groundwater recharge facilities" means land and facilities for artificial groundwater recharge through methods which include, but are not limited to, either percolation using basins, pits, ditches, and furrows, modified streambed, flooding, and well injection, or in-lieu recharqe. "Groundwater recharge facilities" also means capital outlay expenditures to expand, renovate, or restructure land and facilities already in use for the purpose of groundwater recharge. Groundwater recharge facilities may include either of the following: (1) Instream facilities for regulation of water levels, but not regula- tion of streamfIow by storage to accomplish diversion from the water- way. (2) Conveyance facilities to the recharge site, including devices for flow regulation and measurement of recharge waters. Any part or all of the project facilities, including land under the facilities, may consist of separable features, or an appropriate share of multipurpose features of a larger system, or both. (g) "In-lieu recharge" means accomplishing increased storage of groundwater by providing surface water to a user who relies on G88 groundwater as a primary supply, in order to ~ccomplish groundwater storage through the direct use of that surface Water in lieu of pumping groundwater. In-lieu recharge shall be used {rather than continuing pumping while artificially recharging with surface waters. However, bond proceeds shall not be used to purchase gurface waters for use in lieu of pumping groundwater. (h ) "Voluntary cost-effective capital outlay water conservation pro- grams" means those feasible capital outlay measures to improve the efficiency of water use through benefits which exceed their costs. The programs include, but are not limited to, lining or piping of ditches; improvements in water distribution system controls such as automated canal control, construction of small reservoirs within distribution systems which conserve water that already has been captured for reuse, and related physical improvements; tailwater pumpback recovery sys- tems to reduce leakage; and capital changes in onfarm irrigation systems which improve irrigation efft'ciency~ such as sprinkler or subsurface drip systems. In each case, the dep~rtment shall determine that there is a net savings of water as a result Of each proposed project and that the project is cost-effective. Article 2. Water Conservationi Program 12879.3. (a) The proceeds of bonds issued dnd sold pursuant to this chapter shall be deposited in the 1988 Water C~nservation Fund, which is hereby created. A Local Water Projects Assistance Account shall be established in the fund for the purpose of implamenting Section 12879.5, and a Water Conservation and Groundwater ReCharge Account shall be established in the fund for the purposes of implementing Section 12879.6. (b) From time to time, the department may tnodify existing accounts in therfund, or may establish other accounts iin the fund, and in all other oond funds administered by the department, which the depart- ment determines are appropriate or necessar~ for proper administra- tion. , 12879.4. (a) The department may make loans to local agencies, upon approval of the Legislature by statute, tO aid in the construction of eligible projects and to aid in the funding of voluntary, cost-effective capital outlay water conservation programs and groundwater recharge facilities, and may adopt rules and regulations necessary to carry out this chapter. Notwithstanding any provision of [aw, existing rules and regulations adopted by the department pursuant to Chapfer $ (commencing with Section 12880) and Chapter 6.1 (commencing With Section 13450) that are in effect on the effective date of this chapte~ may be utilized to carry out this chapter. Tfib department may subseql~ently revise those rules and regulations pursuant to Chapter 3.$ (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to carry out this chapter. { (b) For the purpose of administering this chapter, the total expendi- tures of the department through the making of any loans may not exceed 5 percent of the total amount of the bon~s authorized to be issued under this chapter. The department shall establish a reasonable sched- ule of administrative fees for loans, which fees ~hall be paid by the local agency pursuant to subdivision (c) of Section j2879.4 to reimburse the state for the costs of state administration of this chapter. Charges incurred by the Attorney General in protecting the interests ode the state in the use and repayment of funds under this chapter shall oe paid from the proceeds of bonds authorized to be issued under this chapter. These charges shall not be paid from funds allocated for administrative purposes, but shall be treated aS a program expense, not to exceed 1.5 percent of the total amount of the bonds authorized to be issued under this chapter. (c) Any contract entered into pursuant to t~is section may include such provisions as may be determined by the d4partment, provided that any contract concerning an eligible project shall include, in substance, all of the following provisions: (1) A fi_nding by the department that the locJ~l agenc.~ has the ability to repay the loan, that the eligible project is ecdnomicalIy justified, and that the eligible project is feasible from an eOgineering and geologic standpoint. (2) An estimate of the reasonable cost and benefit of the eligible Continued on page 11~ 21 82 Wa er Conservation Bond Law of 1988 Argument in Favor Proposition 82 cqntinues California's commitment to the wise and efficient use of our limited water supplies. Proposition 82 has two goals. First, it provides $20 million in loans for local govern- ment agencies to bUild water supply projects needed to provide water to their residents. California's population continues to grow. Loans made available from Propbsition 82 will enable local agencies to satisfy the demands created by that growth. New local water storage projects also could help ease the threat of future drought-related water supply shortages. Second, PropositiOn 82 provides $40 million to enable communities to obtain loans for voluntary, cost-effective water conservation Iprograms and groundwater recharge facilities. Water cor~servation helps local agencies to save water now being 10st due to leaking pipes and unlined ditches and canals. This means more water for customers at a lower cost as cgmpared to the costs of building new facilities to make up for the lost supply. Another way to use our water more efficiently is through the refilling--or recharge--of our underground water supply. Many areas of California are using ground- water faster than r~ature can replenish it. Groundwater recharge has been i practiced here for 90 years. It is a proven method of! placing surplus surface water from extremely wet yea~s into available storage space under- ground so that it can be used in dry years. This under- ground space is available in the great Central Valley and in valley areas in cgastal and southern California. Moreover, as storing surface water behind dams be- comes more expensive, storing water underground where it does not evaporate becomes more practical, efficient, Rebuttal to Argument in The supporters of Proposition 82 seem convinced that government action lis the only way to solve water short- ages in California. As we show in our argument, it is often government actionk that contribute to shortages in the first place. Underground water supplies could better be conserved by assigning ownership rights to the groundwater. Cur- rently these vital r~sources are used in common, so that no individual has a stake in seeing this water used more sparingly. This is silnilar to the overgrazing of cattle on government-owned pasture land in the Rocky Mountain states. We admit that thls measure is popular. But we also urge you to note that there are so many bond issues on this ballot that the whole concept is getting ridiculous. With each election, the number grows and grows until your ballot pamphlet loc~ks like a phone book. Democratic andRepublican politicians are never hap- pier than when theY are spending the taxpayers' money. of Proposition 82 and economical. Storing water underground in coastal areas also keeps ocean salt water from seeping into drinking water supplies, thereby ensuring better quality drinking water. The State Department of Water Resources currently has 103 applications from local agencies on file represent- ing $205 million worth of water conservation and ground- water recharge projects. Over half of these projects have $3 in benefits for every $1 in cost, making them a good investment for all Californians. Proposition 82 makes good sense for California. Con- serving more water could delay the need to build expen- sive new dams on our rivers. Conserving more water helps provide a water supply adequate to meet the demands of a rapidly growing population. Stretching our limited water supply will also ensure the continued vitality of our agriculture and industry. Most importantly, however, a clean and abundant supply of water is necessary to preserve and protect public health. Californians previously have shown overwhelming sup- port for using general obligation bonds for financing local water projects, water conservation programs, and groundwater recharge facilities. We respectfully urge your support of Proposition 82. Our water resources are too precious to squander away. JIM COSTA Member of the Assembly, 30th District Chairman, Assembly Water, Parks and Wildlife Committee HENRY J. MELLO State Senator, 17th District NORMAN WATERS Member of the Assembly, 7th District Chairman, Assembly Agriculture Committee Favor of Proposition 82 With bond financing, these legislators can show their support for popular projects without immediately raising taxes to pay for them. Taxpayers in the future, though, will have to pay hefty interest charges to the bondholders. Is this a good way to run our state government? If you vote NO on Proposition 82, it won't mean that you favor water shortages. It means that you favor accountability from our elected officials, desire to keep California out of debt, and desire to look into free market alternatives to government programs. Vote NO on Proposition 82. JERRY R. DOUGLAS Director, Topanga-Las Virgenes Resource Conservation District TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Libertarian Party of California Candidate for U.S. Congress, 30th District 22 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Water Conservation Bond Law of 1988 Argument Against Proposition 82 Proposition 82 asks for $60 million in bonds for local water projects, water conservation programs, and ground- water recharge facilities. We urge you to vote NO. Government water policies have given us a potential water shortage. Not flushing the toilet and not watering our driveways is no answer. As individuals we should not waste water, but it is worth noting that 85% of the water used here in California is for agriculture, our state's largest industry. The main reason for the shortage is that low prices encourage waste. One of the worse features of state water ~eOlicy is uniform water charges over given areas. This ads to residential customers, who are low water users, subsidizing agricultural and commercial customers, who use a lot of water. A good example is the difference in water prices paid by the Imperial Irrigation District (agricultural), which pays $10 an acre-foot, and Los Angeles' Metropolitan Water District (residential), which pays $250 an acre-foot for the same Colorado River water. If big water users had to pay the real cost of their water, prices would fluctuate according to supply and lead to conservation as well, as cost effectiveness would emerge to help the long-term supply and maintenance needs of our most vital resource. This would be in stark contrast to California's Central Valley, where users pay only 9% of the actual cost of the water they use and thus keep submarginal dry land in production. State law forbids the sale or reallocation of agricultural 82 water. We favor allowing farmers tO sell their water at market rates. Otherwise, they have to use all of it themselves, ,thus causing waste now ~tnd shortages later. California s water consumers would benefit greatly by a free market in water. The end of price controls would lower prices for individual residential users while raising them to market values for big agricultural and commer- cial customers. Lower rates can also result from the private operation of water systems. For example, two mells privately drilled in Irving, Texas, have been greatly economical for the users there. In a different use of the private sector, San Diego's County Water Authority has iagreed to buy some of its water from a private supplier in Colorado. By rejecting this bond measure, we can not only keep from going into debt, but we can look seriously at lowering our individual water rates and establishing a fair, free market in water in California. Vote NO on Proposition 82. JERRY R. DOUGLAS Director, Topanga-Las Virgenes Rasource Conservation District TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Libertarian Party of California Candidate for U.S. Congress, 30th District Rebuttal to Argument The argument against Proposition 82 is confusing, inaccurate and misdirected. Proposition 82 provides loans to cities, counties, water districts and other local governmental agencies so that (1) leaking pipes, ditches and canals can be repaired, (2) floodwaters can be captured and stored underground for use in drought years, and (3) local areas can build small water storage facilities to meet the needs of a growing population. California's vast system of waterworks provides ample water supplies to cities and farms even in dry years. The issue is whether we are delivering water to our farms and residents in an efficient and cost-effective manner. The opponents argue about the broader implications of who gets how much water and at what cost--not about the merits of Proposition 82. Government water policies have not given us a poten- tial water shortage. Our population continues to grow at a record pace. There are six million more people in California today then 10 years ago. That means we are using more water. Against Proposition 82 Water conservation stretches our current water supply to serve more people. Water conservation and ground- water recharge are the most envi;onmentally sound, cost-effective means of addressing our short-term water needs. Proposition 82 would enable local governments to make much-needed improvements tc~ our water delivery system. Proposition 82 would fund proven programs --programs which California voters have supported for years. Don't be confused or misled by tl~e argument against this measure. Please join us in voting "YES" on Proposi- tion 82. JIM COSTA Member of the Assembly, 30th District Chairman, Assembly Water, Parks qnd Wildlife Committee HENRY J. MELLO State Senator, 17th District NORMAN WATERS Member of the Assembly, 7th District Chairman, Assembly Agriculture C ~mmittee G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 23 83 Clean Water and Water Reclamation Bond Law of 1988 Official Title and Summary Prepared by the Attorney General CLEAN WATER AND WATER RECLAMATION BOND LAW OF 1988. This act provides for a bond issue of sixty-five million dollars ($65,000,000) to provide funds for water pollution control and water reclamation projects and makes changes in thc Water Conservation and Water Quality Bond Law of 1986 relating to loans and the Clean Water Bond Law of 1984[relating to accounts, funding for specified purposes, loans, and compliance with federal requirements. Final Vote Cast by the Legislature on SB 997 (Proposition 83) Assembly: Ayes 65 Senate: Ayes 32 Noes 4 Noes I Analysis by the Legislative Analyst Background In the past, the costs to build local sewage treatment plants have been paid from a mix of federal, state, and local moneys. The federal government provided grants to public agencies to PaY for up to 75 percent of the project costs. The remaining costs were paid from state and local funds. However, as Of October 1988, the federal govern- ment is providing iprimarily loan funds, rather than grants, to build sewage treatment plants. This change shifts the costs of building the plants to local agencies and the state. Since 1970, voters in California have approved four ballot measures to Sell general obligation bonds totaling $1.2 billion to helpi pay for the costs of building local sewage treatment plants and other related projects. As of June 1988, the State Water Resources Control Board had spent or committed all but $257 million of the funds authorized by the previous bond acts. Of the $257 million left, $207 million primarily is for grants to communities of any size for building sewage treatment plants, $36 million specifically is set aside for grants to small communities, and $14 million is for loans to build water reclamation projects. Water reclamation projects are projects that allow wastewater to be reused in place of using additional fresh water. These iprojects include facilities that treat wastewater or transport it to a place where it can be reused. The board estimates that small communities will need at least $85 million~o build or expand sewage treatment plants to meet current needs. In addition, local agencies will need about $150 million to pay for water reclamation projects. : Proposal This measure authorizes the state to sell $65 million of general obligation !bonds to help local agencies build water reclamation projects and sewage treatment plants. General obligation bonds are backed by the state, mean- ing that the state Will use its taxing power to assure that enough money is a~ailable to pay off the bonds. The state would use General iFund revenues to pay the principal and interest costs df the bonds. General Fund revenues 24 : come primarily from the state corporate and personal income taxes and the state sales tax. The bond money would be used for the following three purposes: 1. Loans for Water Reclamation Projects--S30 Million. The State Water Resources Control Board would use these funds to make loans for up to 20 years to local agencies for water reclamation projects which cost less, overall, than developing new water supplies. Loans could be made for up to the full cost of designing and building projects. The interest rate on the loans would be subsi- dized by an amount equal to one-half of the interest rate that the state pays on the bonds. Thus, the state's interest cost would be more than the interest it collects on the loan repayments. 2. Grants for Sewage Plants in Small Communities-- $25 Million. The State Water Resources Control Board would give these grants to small communities (less than 3,500 people) with a financial hardship, as determined by the board. The grant could pay for up to 97.5 percent of the total costs of pollution studies and of planning, designing, and building the plants. No grant for any single project could exceed $2 million. 3. Guarantees for Local Agency Bondsm$10 Million. The State Water Resources Control Board could use these funds for a new program to guarantee proposed local agency bond issues for building sewage treatment plants. The state bond money could be used to pay off the local bonds, if the local agency is unable to make its payments. Any of the $10 million not used for guarantees could be spent for the loans and grants discussed above as well as other purposes of the bond measure. The measure would allow the board to use about $3 million of the bond money for administrative costs to oversee the grant and loan programs. All of the bond moneys would be available to the board, except adminis- trative costs would have to be appropriated by the Legislature. The measure also would allow the Legisla- ture to appropriate bond moneys for research and plan- ning activities relating to water quality. It is assumed that these costs would be paid from the $3 million allowed for administrative costs. G88 In addition, the measure would make minor changes in the interest rate charged on loans provided in previous clean water bond acts and in the administration of bond funds under those acts. The principal change would be that bond money from the Clean Water Bond Law of 1984 could be used, as approved by the Legislature, in combi- nation with federal funds to build sewage treatment works to protect residents of the City of San Diego and other areas along the California-Mexico border from water pollution originating from Mexico. No single project could receive more than $10 million in loans from the board. Fiscal Effect Net Cost of Paying Off the Bonds. The bonds autho- rized by this measure probably would be paid off over a period of about 20 years, and would be a responsibility of the state's General Fund. The total cost of the bonds would be about $120 million, consisting of $65 million for principal and $55 million for interest. However, because the loans would be repaid (with a subsidized rate of interest), the net istate cost would be about $82 million, or an average of about $4 million per year. (The net state cost would consist of $68 million for the bonds used for grants, bond guarantees, and admin- istrative costs, and about $14 million for the interest rate subsidy on the loans.) This estimate assumes that all of the bonds would be sold at an average interest rate of 7.5 percent, and both the bonds and the loans would be paid off over the same 20-year period. Borrowing Costs for Other Bonds. l By increasing the amount which the state borrows, this imeasure may cause the state and local governments to l pay more interest under other bond programs. These costs cannot be estimated. State Revenues. The people who buy these bonds are not required to pay state income tax On the interest they earn. Therefore, if California taxpayers buy these bonds instead of making other taxable investments, the state would collect less tax. This loss of avenue cannot be estimated. Text of Proposed Law This law proposed by Senate Bill 997 (Statutes of 1988, Ch. 47) is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law amends and adds sections to the Water Code; therefore, existing provisions proposed to be deleted are printed in ~tr!kcc, ut typc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SEC. 2. Chapter 17 (commencing with Section 14050) is added to Division 7 of the Water Code, to read: CHAPTER 17. CLEAN WATER AND WATER RECLAMATION BOND LA W OF 1988 Article 1. General Provisions 14050. This chapter shall be known and may be cited as the Clean Water and Water Reclamation Bond Law of 1988. 14051. The Legislature finds and declares as follows: (a) Clean water is essential to the public health, safety, and welfare. (b) Clean water fosters the beauty of California's environment, the expansion of industry and agriculture, maintains fish and wildlife, and supports recreation. (c) California's abundant lakes and ponds, streams and rivers, coastline, and groundwater are threatened with pollution, which could threaten public health and impede economic and social growth if left unchecked. (d) The state's growing population has increasing needs for clean water supplies andadequate treatment facilities. (e) It is of paramount importance that the limited water resources of the state be protected from pollution, conserved, and reclaimed when- ever possible to ensure continued economic, community, and social growth. (f) The chief cause of water pollution is the discharge of inade- quately treated waste into the waters of the state. (g) Local agencies have the primary responsibility for construction, operation, and maintenance of facilities to cleanse our waters. (h) Rising costs of construction and technological changes have pushed the cost of constructing treatment facilities beyond the reach of many small communities. (i) Because water knows no political boundaries, it is desirable for the state to contribute to construction of needed fqcilities in order to meet its obligations to protect and promote the health, safety, and ~elfare c?f its people and environment. (j) The people of California have a primary in!ernst in the develop- ment of facilities to reclaim waste water to supplement existing water supplies and to assist in meeting the future water needs of the state. (k) A significant portion ~f the future water needs of California may be met by the use of reclaimed water. ([) .Local public agencies have the primary responsibility for the construction, operation, and maintenance of water reclamation facili- ties. (m) Local public agencies need financial assistance to make cost- effective reclamation projects financially feasible. (n) (1) It is also the intent of this chapter to provide special assistance to small communities to construct .facilities necessary to G88 eliminate water pollution and public health hazards. (2) It is also the intent of this chapter to prodide funds for the design and construction of eligible water reclamation projects and for the development and implementation of programs]and activities that lead to increased use of reclaimed water in Califoraia. 14052. As used in this chapter, the following words have the following meanings.. (a) "Board" means the State Water Resour°es Control Board. (b) "Committee" means the Clean Water dnd Water Reclamation Finance Committee created by Section 1406Z (c) "Construction" has the same meaning~s in the Federal Clean Water Act. (d) "Eligible project" means a project for a small community for the construction of treatment works which is all of the following: (1) Necessary to prevent pollution. (2) Eligible for federal assistance pursuant tO Title VI of the Federal Clean Water Act. (3) Certified by the board as entitled to priority over other treatment works, and complies with applicable water quality standards, policies, and plans. (e) "Eligible reclamation project" means! a water reclamation project which is cost-effective when compared u?ith the cost of alterna- tive new freshwater supplies, and for which no federal assistance is currently available. These projects shall complq with applicable water quality standards, policies, and plans. (f) "Federal assistance" means funds available to a local agency pursuant to the Federal Clean Water Act. (g) "Federal Clean Water Act" or 'federal qct" means the Federal Water Pollution Control Act (33 U.S.C Sec. 12051 et seq.) and any acts amendatory thereof or supplementary thereto. (h) "Fund" means the 1988 Clean Water and Water Reclamation Fund created pursuant to Section 14055. (i) "Local public agency" means any city, l county, district, joint powers authority, or any other local public body or political subdivision of the state created by or pursuant to state law and involved with water or waste water management. (j) "Municipality" has the same meaning a~ in the Federal Clean Water Act and also includes the state or any agency, department, or political subdivision thereof (k ) "Small community" means a municipaliiy with a population of $,500 persons or less, or a reasonably isolated a~}d divisible segment of a larger municipality encompassing 3,500 persons or less, with a financial hardship as defined by the board. (1) "State grant" means a grant given to a qualifying small commu- nity eligible for federal assistance under Title VI of the Federal Clean Water Act. (m) "State Water Pollution Control Bevol~ing Fund" means a revolving fund created under state law for the purpose of issuing loans for the construction of eligible treatment works in accordance with the federal act. (n) "Treatment works" has the same meaning as in the Federal ~ontinued on page 118 25 $3 Clean Water and Water Reclamation Bond Law of 1988 Argument in Favor The most effective way we have found to improve water quality in oUr streams, lakes, and estuaries is to properly treat waste water. One of California's most successful environmental programs for more than a dec- ade has been a series of state bond issues used to make grants and loans to localities to build or improve their sewage treatment iworks. California's voters have ap- proved every one of these bond issues by large margins. Proposition 83 would allow the state to issue bonds to continue this program. It would allow grants totaling $25 million to be made to smaller communities that have had the most difficulty hchieving current water quality stan- dards, because the icosts of sewage treatment for each household are so high there. It would also allow the state to create a bond guarantee program so that localities of all sizes could borrow more cheaply to finance treatment works. of Proposition 83 California is currently in a drought, which dramatizes the importance of conserving our water supply and of finding new ways to make the supply go further. A sensible and practical way to do that is to "reclaim" used and dirty water, process it to remove all impurities, and provide ways to reuse that water, especially for landscape and agricultural purposes. Several California communi- ties have successfully reclaimed waste water for urban purposes in this way. Proposition 83 provides funding for $35 million in loans to localities of all sizes for projects to treat and reclaim waste water. HENRY J. MELLO State Senator, 17th District JIM COSTA Member of the Assembly, 30th District Chairman, Assembly Water, Parks and Wildlife Committee Rebuttal to Argument in Favor of Proposition 83 Pollution of oth~r people's property is a violation of individual rights. Pesticides, industrial wastes, and other pollutants are not dumped into the water supply by average taxpay- ers-they are predominantly byproducts of commercial farming and indus[ry. The control and cleanup of these effluents should bO a necessary cost of doing business-- and not a burden On the general taxpayer. The solution to tour water pollution problems is not more government programs and more government debt. Rather, property tights to clean water should be pro- tected and enforced. Strict liability for pollution damage should regulate water use, not government agencies and arbitrary gov- ernment standards. AS LONG AS TAXPAYERS BAIL OUT POLLUTERS, POLLUTION WILL CONTINUE TO GROW UNCHECKED. This bond issue makes the wrong person pay. Vote NO on Proposition 83. CHUCK OLSON Libertarian Candidate for State Senat~ llth District MARK ROSS Environmental Activist JOHN L. CORL Libertarian Party Central Committee, Contra Costa County Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Clean Water and Water Reclamation Bond Law of li988 Argument Against Proposition 83 This bond issue would fund projects of three distinct types. One is to enable small communities with financial hardships to construct or upgrade sewage treatment facilities. The second is to treat agricultural drainage water to remove pesticides, etc. The third is to reclaim and recycle waste water. Water reclamation may not be cost-effective for agri- cultural use or aesthetically acceptable for domestic use. Costs of treatment of agricultural wastes should be borne by the agricultural industry, who might then be moti- vated to reduce the use of pesticides. Small communities, many of them resort and/or retirement communities, should not expect taxpayers statewide to subsidize their lifestyles. If bond financing is unavoidable, the local public agencies should present their proposals as bond issues for approval by the local voters. If approved, the bonds should be paid off by the local taxpayers, not taxpayers statewide. In 1987-88 the state paid $248 MILLION in interest alone (not including principal) on outstanding state bonds. The money lost by the state in bond interest costs would fund this program and also the safe drinking water and water conservation programs without these three ballot issues on this ballot. Bonds are not the way to go. But if necessary to protect downstream water consumers from pollution the state 83 should fund these projects on a pay-as-you-go basis, not a bond issue. I Payments of principal and interest on outstanding bonds totaled $515 MILLION in the 1987-88 budget. Bonds already authorized but not yet! sold will add $372 MILLION when sold. The nine bond issues on this ballot would add $295 MILLION, for a total of $1.1 BILLION each year. On a pay-as-you-go basis $1il BILLION would finance all of the projects in the nine Bond issues, schools, prisons, housing, etc. in three years. By placing capital expenditures on the ballot as bond issues the Legislature postpones major costs to future years, leaving more room in the current budget for boondoggles with low priority or lacking popular support. The Legislature trots out the sacred cows on the ballot where the voter can see them, while hiding in the fine print of the budget the white elephants such as the legislative slush fund. Interest income from state bonds is exempt from federal and state income taxes, a loo?hole for wealthy investors to avoid paying their fair share of taxes, thus shifting the tax burden to working people. By voting for these bonds you are voting for a higher share of federal and state taxes for yourself. Vote NO on the water pollution bonds! WILLIAM McCORD Retired State Administrator Rebuttal to Argument Against Proposition 83 Proposition 83 would allow the state to issue bonds to continue the state's successful program to treat urban waste water. The bonds could not be used to pay for treating agricultural drainage water. The opponent's argument is incorrect about that. The proposition does correct several old bond acts, to bring them into confor- mity with the new federal tax laws. Proposition 83 would provide loans to localities to build water reclamation plants. These plants would treat sew- age to a high standard, so it could be reused for landscap- ing and industrial purposes. Several California communi- ties already reclaim water in this way, and it has proven to be a cost-effective way to make our existing water supply go further. Proposition 83 would also finance grants to small com- munities to help pay for sewage treatment plants. The grants could be made only in small rural places with evidence of real financial hardshi~p. Wealthy resort and retirement communities need not apply. Most of the money from Proposition:83 would be used to make loans, not grants. Local c~hz~ns and industries would pay the state back. Why should We use state bonds for this purpose, then? Because the state of California is large and well respected, and can borrow money more cheaply than can localities. At little c~st or risk, we can save money for taxpayers in areas needing sewage treat- ment works. And we can make our state's waters cleaner. These are good reasons to vote for PrOPosition 83. HENRY J. MELLO State Senator, 17th District JIM COSTA Member of the Assembly, 30th Distric~ Chairman, Assembly Water, Parks and Wildlife Committee G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 27 8/ I-lousing and Homeless Bond Act of 1988 Official Title and Summary Prepared by the Attorney General HOUSING AND HOMELESS BOND ACT OF 1988. This act provides for a bond issue of three hundred million dollars ($300,000,000) to provide funds for a housing program that includes: (1) emergency shelters and transitional housing for homeless families and individuals, (2) new rental housing for families and individuals including rental housing which meets the special needs of the elderly, disabled, and farmworkers, (3) rehabilitation and preservation of older homes and rental housing, and (4) home purchase assistance for first-time homebuyers. Final Vote Cast by the Legislature on SB 1693 (Proposition 84) Assembly: Ayes 54 Senate: Ayes 27 Noes 16 Noes 3 Analysis by the Legislative Analyst Background The state admin~ters various housing programs to help meet the need for affordable and decent housing. Most of these programs Provide either low-interest loans or grants for the cons :ruction or rehabilitation of housing for ]ow-income persons. Proposal ~ This measure authorizes the state to sell $300 million in general obligation ibonds to provide funds for six housing programs administered by the state. Genera] obligation bonds are backed by the state, meaning that the state will use its taxing power to assure that enough money is available to pay off the bonds. The state's General Fund would be used to pay the principal and interest costs on the bonds. General Fund revenues come primarily from the state corporate and personal income taxes and the state sales tax. . The $300 millic~n in bond proceeds would be used entirely to assist 16w-income persons by providing assis- tance for the development or rehabilitation of affordable rental housing and temporary housing for the homeless, and by providing !financial assistance to first-time home buyers. The state ~vould use specific definitions of "low- income" and "affordable" to administer the programs. Of the $300 m'_llion in bond proceeds, $260 million would be spent on four existing state programs: Rental Housingi Construction Program ($200 Million). The state would rase $200 million to provide affordable rental housing for low-income households. Under the existing program, the state may make a variety of loans and grants to public and private developers to provide this housing. In tl~e past, the state has made "deferred- payment" loans to develop and finance affordable rental housing and grar~ts to reduce the amount of rent col- lected from low-income tenants. If the state continues to operate the program in a similar manner, the state would make loans, at no Or low interest, for periods of at least 40 years. The borrowers would begin repaying principal and interest after 30 years. In return for the low-interest loans, the state would require borrowers to rent at least 30 percent of the units to low-income households at afford- able rents. In some cases, the loans would not provide 28 enough assistance to keep rents affordable to these targeted households. In these instances, the state could make grants on an ongoing basis to ensure affordability. Special User Housing Rehabilitation Loan Program ($25 Million). The state would make $25 million in loans for the purchase and rehabilitation of residential hotels. These hotels typically rent rooms to low-income individ- uals on a month-to-month basis. The state would lend this money at low interest rates--up to 3 percent--for periods ranging from 20 to 30 years. During that time, hotel owners could not raise rents on units rehabilitated or purchased with program loans above levels affordable to the low-income tenants. Borrowers could postpone pay- ment of principal and interest until the end of the loan period. Emergency Shelter Program ($25 Million). The state would make $25 million in grants to nonprofit agencies and local governments to provide emergency shelters for the homeless. Migrant Housing Program ($10 Million). The state would spend $10 million to construct rental housing developments for migrant farmworkers and their fami- lies. The housing units would be owned by the state and operated by local governments using other state funds and rent receipts. These units would be available at affordable rents to farmworkers when they are working at local farms. The measure also provides $40 million for two new housing programs: Home Purchase Assistance Program ($25 Million). The state would provide $25 million in loans and mort- gage insurance to help low-income persons buy their first homes. This program would supplement low-interest loans provided under two existing state programs that assist California veterans and low- and moderate-income households in buying homes. The loans under the new program could be used, among other things, for: (a) ad- ditional interest-rate subsidies; (b) low-interest second mortgages; or (c) down payment assistance. The state would make the loans under this program for periods up to 30 years, and the borrowers would repay principal and G88 interest at the end of the loan period or when they sell or refinance their homes. Family Housing Demonstration Program ($15 Million). The state would provide $15 million in loans, at 3 percent interest, for the construction or rehabilitation of two "nontraditional" forms of housing: · Congregate Housing. Twenty-five to 35 percent of the funds would be allocated for "congregate hous- ing'' developments. These projects would house 2 to 10 families within a single large unit and provide common living areas. · Community Housing. The remaining funds would go to "community housing" developments, which would have 20 or more rental or cooperative units and provide various support services (such as child care, job training and placement) to the residents. Both of these housing developments would be aimed at serving the needs of low-income single-parent households and households with both parents working outside the home. Rents or payments on units would be kept low and affordable. The state would make loans for periods rang- ing from 20 to 30 years, and the borrowers could postpone payment of principal and interest until the end of the loan term. Fiscal Effect Direct Cost of Paying Off the Bonds. The state would would receive loan repayments uader the four loan programs discussed above. These repayments, however, would be used for additional loans, not for repayment of the general obligation bonds. As a result, the state's General Fund would be responsible ifor the bond princi- pal and interest payments, which typically would be paid off over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 17.5 percent, the cost would be about $535 million to pay off both the principal ($300 million) and interest ($235 million). The average payment would be about $25 million each year. Borrowing Costs for Other Bonds. By increasing the amount that the state borrows, this measure may cause the state and local governments to PaY more under other bond programs. These costs cannot be estimated. State Revenues. The people who buy these bonds are not required to pay state income tax bn the interest they earn. Therefore, ff California taxpayers buy these bonds instead of making taxable investments, the state would collect less in income taxes. This loss o~ revenue cannot be estimated, i Text of Proposed Law This law proposed by Senate Bill 1693 (Statutes of 1988, Ch. 48) is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Health and Safety Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Part 9 (commencing with Section 53150) is added to Division 31 of the Health and Safety Code, to read: PART 9. HOUSING AND HOMELESS BOND ACT OF 1988 CHAPTER ]. GENERAL PROVISIONS 53150. This part shall be known and may be cited as the Housing and Homeless Bond Act of 1988. 53151. As used in this part, the following terms have the following meanings: (a) "Committee"means the Housing Committee created pursuant to Section 53172. (b) "Fund" means the Home Building and Rehabilitation Fund created pursuant to Section 53160. CHAPTER 2. HOME BUILDING AND REHABILITATION FUND 53160. The proceeds _of bonds issued and sold pursuant to this part shall be deposited in the Home Building and Rehabilitation Fund, which is hereby created. Moneys in the'fund shall be allocated and utilized in accordance with Part 8 (commencing with Section 53130), as added by Senate Bill No. 1692 of the 1987-88 Regular Session. CHAPTER 3. FISCAL PROVISIONS 53170. Bonds in the total amount of three hundred million dollars ($300,000,000), exclusive of refunding bonds issued pursuant to Section 53170.5, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid and binding obligation of the State of Califo~rnia, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of and interest on, the bonds as the principal and interest become due and payable; 53170.5. A ny bonds issued and sold pursuant to this chapter may be refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 2 of Title 2 of the Government Code. Approval by the electors of the state for the issuance of these bonds shall include the approval of any bonds issued to refund-any bonds originally issued or ~reviously ~s' sued ref~3nding bonds. 171. The bonds authorized by this part shall be prepared, exe- cuted, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) o~f Part 3 of Division 4 of Title 2 of the Government Code), and all of the G88 grovisions of that law apply to the bonds and to this part and are ereby incorporated in this part as though set forth in full in this part. 53172. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this part, the Housing Committee is hereby created. For purposes of this par~ the Housing Committee is "the committee"as that term is used in the State GeneralObligation Bond Law. The committee consists of the Controller, the Treasurer, the Director of Finance, the Director of the Department of Housing and COmmunity Development, and the F, xecutive Director of the California Ho?s. ing Finance Agency, or their designated representatives. A majority ~J the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Department of Housing and Community Development is designated as the "board" for programs administered by the department and the California Housing Finance Agency is designeted as the "board"for programs administered by the agency. 53173. The committee shall determine whet,~er or not it is necessary or desirable to issue bonds authorized pursuant to this part in order to carry out the actions specified in Part 8 (commencing with Section 53130) as added by Senate Bill No. 1692 of the J987-88 Regular Session, and, if so, the amount of bonds to be issued and soM. Successive issues of bonds may be authorized and sold to ~rry out those actions progressively, and it is not necessary that all of lhe bonds authorized to be issued be sold at any one time. 53174. There shall be collected each year and in the same manner and at the same time as other state revenue is i~ollected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal o~ and interest on, the bonds maturing each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and ?erform each and every act which is necessary to collect that additionat sum. 53175. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this part, an amOUnt that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable. (b) The sum which is necessary to carry out the provisions of Section 53176, appropriated without regard to fiscal years. 53176. For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized to be sold for the purpose of carrying out this part. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, plus interest that the amounts would have earned in the (~ontinued on page 120 29 84 Housing and Homeless Bond Act of 1988 Argument in Favor of Proposition 84 Homelessness. It'S a California tragedy. Over 100,000 Californians are hofl~eless and the number grows daily. Who are they? Many are frail elderly, Vietnam veterans, families with small children, single mothers, mentally ill, disabled men and women. They all have one thing in common. They can't find affordable housing, i Anyone can end 9p without shelter. Serious illness or linjury, low wages, a sudden layoff, a house fire, mental illness, loss of a spouse. Any of these can spell devastatio~a for someone barely able to balance the cost of food, clothing, medical bills and shelter. The forecasts arei unsettling. While the holes in the safety net of low-income housing are getting bigger and homelessness grows, federal hous- ing subsidies are ending. California, the sixth largest economic power in the world, has a severe shortage of affordable homes and rental units. Homeless shelters throughout the state are overcrowded and t~rning people away. There is something we can do. Simply stated, Proposition 84 is the most important action to fight homelessness in 10 years. After a decade of neglect, this responsible and effective measure can help communities and citizens groups solve local housing problems. This program will produce 33,000 new emergency shelter beds, 22,000 rehabilitated residential hotel units, 8,000 rental units for low-income tenants and 300 farm- worker housing units. And Proposition 84 contains provisions for child care, job training and other support services to help break the cycle of homelessness and hopelessness. This bond act will do a lot of good. For many in need of emergency shelter: a bed in a secure place and the chance to stop the humiliation of living on the street, to seek out new or improved employment. For the elderly: the chance to live in an affordable home or apartment without fear of eviction or premature nursing home institutionalization. For single parents and couples with children: the chance to leave a neighbor's couch or the family car to find decent housing, child care and jobs. For the growing number of homeless children: the chance to go to school regularly. For veterans: the chance for job training, affordable rental housing and the possibility of owning a home. Proposition 84 is the right thing to do and the right way to do it. Help bring the homeless inside. Help restore their sense of community and family. Help break the cycle of hopelessness that threatens so many Californians. Please vote "yes" on Proposition 84. DAVID ROBERTI State Senator, 23rd District Senate President pro Tempore PETER T. CHACON Executive Director, Vietnam Veterans of California CARL JONES Director, Congress of California Seniors, Inc. Rebuttal to Argument in If you vote for this measure you may temporarily feel like a nice person, but don't think that you will solve the problems of the poor or homeless. Government efforts to help the poor inevitably produce the opposite result. Today's governmefit-subsidized housing becomes tomor- row's human-demOralizing slum. The proponents of this measure hope to t~ull at your heartstrings, but they do not, and cannot, !show you that government housing subsidies make anyi significant dent in the problems of the poor or homeless, iln fact, government housing projects typically destroy potentially repairable homes, and then erect instant slums in their place. Studies have found that exclusionary zoning and oner- ous building codesi and regulations add up to 25% to the cost of new construction and can delay and even discour- age new residential building. These are the major causes of housing shortages, not a lack of government spending. Favor of Proposition 84 In June of this year voters approved $1.7 BILLION in bonds. This ballot proposes $3.3 billion more--S5 billion just this year alone! At this rate, before these bonds are paid off in 20 years, we will have a bonded indebtedness of $100 BILLION and annual payments of $9 BILLION, a quarter of today's entire state budget. Politicians know that voters don't want their taxes raised. They have chosen instead to address genuine humanitarian concerns by mortgaging ours and our children's future for pro- grams which won't work to solve the problems which the politicians have created. VOTE NO ON 841 JUNE R. GENIS Libertarian Candidate for State Assembly, 20th District MICHAEL TEJEDA Businessman DAVID M. GRAPPO Attorney 30 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Housing and Homeless Bond Act of 1988 Argument Against Proposition 84 Public housing projects quickly become the ugliest, worst maintained, and most blighted part of any neigh- borhood in which they are found. England is selling its public housing to the tenants, recognizing that public housing projects are not only inefficiently managed by government bureaucracies but demoralizing to the occu- pants. Those senior citizen housing projects which are planned and operated by churches and other private organizations are more attractive, more responsive to the needs of senior citizens, and less costly to operate. A White House commission, after studying the problem of housing, recently urged the use of direct subsidies to individuals for housing rather than pouring any more money into public housingprojects. There are alternative solutions to housing shortages. One is to stop the massive influx of illegal immigrants into California, competing for low-cost housing with our citi- zens who have lived, worked, and paid taxes in this country all their lives. Another alternative is to chop in half federal spending on "defense," by pulling our troops out of Germany, Japan, and Korea, our ships out of the Persian Gulf, and all 84 the other spots in the world where we are trying to maintain the roles of world policeman and world banker. By abandoning our policies of worldwide intervention and the arms race in space we could balance the budget, start paying off the national debt, and free up hundreds of BILLIONS of dollars for construction and mortgage loans. Interest rates would drop back to where they were in the '50s, at 4% or 5% for mortgage loans. The construction industry would boom, providing jobs and housing for all. There is no surplus in the state budget this year. The $27 MILLION needed to pay off these bonds will have to come from a tax increase or a cut somewhere else in future state budgets. Payments of principal and interes~ on outstanding bonds totaled $515 MILLION in the! 1987-88 budget. Bonds already authorized but not yet gold will add $372 MILLION when sold. The nine bond issues on this ballot would add $295 MILLION, for a total iof $1.1 BILLION each year. On a pay-as-you-go basis $1.1. BILLION would finance all of the projects in the nine bond issues, schools, prisons, housing, etc. in only three yea~s. Vote NO on the housing bonds! WILLIAM McCORD Retired State Administrator Rebuttal to Argument Against Proposition 84 Proposition 84 is the right thing to do, and the right way to do it. Mr. McCord's opposition suggests no solutions. It is also inaccurate. This bond act is not a public housing program. Churches and private organizations will be eligible to build, own and manage low-income housing financed under this bond act. Private and public, nonprofit and profit-motivated sponsors will all participate in building the housing. Apartments built under the bond act will not be managed by government bureaucracies, but in most cases will be run by private management companies. In addition to housing and temporary shelters, this bond act provides child care, job training and other support services for families and single parents. This innovative program is supported by housing experts as the way to fight homelessness on a permanent rather than "band aid" basis. Mr. McCord's scare tactics are an attampt to cover the truth. This bond act will help thousands of people at a minimal cost to taxpayers. The annual debt service will be approximately $1 per Californian per year. Support for Proposition 84 is widespread. Nearly 100 public and private organizations throughout California have joined the fight against homelessness by supporting the Housing and Homeless Bond Act. They include: the Congress of California Seniors, the Vietnam Veterans of California, the California Council of Churches, the Cali- fornia Homeless Coalition, the SalvatiOn Army, Jewish Family Services, Catholic Charities, and the League of Women Voters of California. Please join us in support of PropositiOn 84. PATTI WHITNEY-WISE Director, California Council of Churches DAVID P. RILEY Lieutenant Colone~ the Salvation Arm~ SHELLY HANCE Cochairperson, California Homeless COalition G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 31 $5 I ibrary Construction and Renovation Bond Act of 1988 Official Title and Summary Prepared by the Attorney General LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 1988. This act provides for a bond issue of seventy-five milliOn dollars ($75,000,000) to provide funds for a library construction and renovation program. Final Vote Cast by the Legislature on SB 181 (Proposition 85) Assembly: Ayes 59 Senate: Ayes 33 Noes 10 Noes 0 Background Historically, cities, counties or special districts have paid most of the oats of operating and building facilities for the 169 local public library jurisdictions throughout the state. Since ~982, however, local libraries have re- ceived about $76 million from the state's General Fund to pay a portion of! their operating costs and about $13 million from the!federal government for building and remodeling purpdses. Proposal This measure authorizes the state to sell $75 million of general obligation bonds for grants to specified local agencies to buy property for, construct, renovate and expand local libraries. Grants for books, other library materials, operating expenses, and administrative costs would be prohf~ited. General obligation bonds are backed by the state, meaning that the state will use its taxing power to aysure that enough money is available to pay off the bonds. The state would use General Fund revenues to pay ithe principal and interest costs of the bonds. General FUnd revenues come primarily from state corporate and p~rsonal income taxes and the state sales ta]~ order to p~rticipate in this grant program, local agencies would have to: · pay 35 percent of the project costs, · use their own money to buy books and operate the library, and · operate for ~t least 20 years any library acquired, constructed, i remodeled or rehabilitated with state grant funds 9nder this program. The State Liblarian would administer this grant pro- gram. A board made up of certain state officials would review local agency requests and decide which agencies would receive giant money. In reviewing the requests, Analysis by the Legislative Analyst the board would consider all of the following factors: · needs of urban and rural areas, · projected population growth, · changing concepts of public library service, · distance of the proposed project from other existing and proposed facilities, and · age and condition of the facility. Fiscal Effect Direct Costs of Paying Off the Bonds. For these types of bonds, the state typically would make principal and interest payments from the state's General Fund over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 7.5 percent, the cost would be about $134 million to pay off the principal ($75 million) and interest (about $59 million). The average payment for principal and interest would be about $6 million per year. Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated. State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making taxable investments, the state would collect less taxes. This loss of revenue cannot be esti- mated. Costs to Administer the Program. The State Librarian may use an amount not to exceed I percent of the bond funds to pay the costs of administering the program. The State Librarian would incur about $750,000 of such costs over the first six years of the program to administer the grants. Costs to Operate New Library Facilities. Local agen- cies that build new libraries or expand their existing libraries would incur additional operating costs. This added cost cannot be estimated. 32 G88 Text of Proposed Law This law proposed by Senate Bill 181 (Statutes of 1988, Ch. 49) is submitted to the people in accordance with the provisions of Article XV1 of the Constitution. This proposed law adds sections to the Education Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Chapter 11 (commencing with Section 19950) is added to Part 11 of the Education Code, to read: CHAPTER 11. CALIFORNIA LIBRARY CONSTRUCTION AND I~ENOVATION BOND ACT OF 1988 Article 1. General Provisions 19950. This chapter shall be known and may be cited as the California Library Construction and Renovation Bond Act of 1988. 19951. The Legislature finds and declares all of the following: (a) The public library is a supplement to the formal system of free public education, a source of information and inspiration to persons of all ages, cultural backgrounds; and economic statuses, and a resource for continuing education and reeducation beyond the ~ears of formal education, and therefore deserves adequate financiat support from government at all levels. (b) It is' in the interest of the people and qf the state that there be a general diffusion of information and knowledge through the continued operation (¢'free public libraries. This diffusion is a matter of general concern inasmuch as it is the duty of the state to provide encouragement to the voluntary lifelong learning of the people of the state. (c) Many existing public library facilities are not safe, efficient, or accessible fi)r use, adequate for the size of the communities they serve, or otherwise capable of providing the public library services needed by the communities they serve. (d) Many communities that are populous enough to require a public library facility do not have one. (e) Local public library authorities do not have su.~.~icient funds to construct or rehabilitate necessary public library facilities. (f) Funding' to meet the need for public library facilities, which is beyond the ability of local government to supply, is most appropriately met by a partnership of state and local governments. 19952. As used in this chapter, the following terms have the following meanings: (a) "Committee" means the California Library Construction and Renovation Finance Committee created pursuant to Section 19972. (b) "Fund" means the California Library Construction and Resto- ration Fund created pursuant to Section 19955. (c) "Board" means the California Library Construction and Reno- vation Board. The board includes the State Librarian, the Treasurer, the Director of Finance, the Assembly Member appointed by the Speaker of the Assembly, and the Senator appointed by the Senate Rules Commit- tee. Legislative members of the board shall meet with, and participate in, the work of the board to the extent that their participation is not incompatible with their duties as Members of the Legislature. For the purposes of this chapter, Members of the Legislature who are members of the board shall constitute a joint legislative cornmittee on the subject matter of this chapter. Article 2. California Library Construction and Renovation Program 19955. The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the California Library,Construction and Renovation Fund, which is hereby created. Notwitt~standinq Section 13340of the Government Code, the fund shall be continuousty appro- priated without regard to fiscal ~lear. 19956. All moneys deposited in the fund shall be available for grants to any city, county, city and county, or district that is empowered at the time of the project application to own and maintain a facility for the acquisition, construction, remodeling, or rehabilitation of facilities for public library services. 19957. The grant funds authorized pursuant to Section 19956 and the matching funds provided pursuant to Section 19962 shall be used by the recipient for any of the following purposes.. (a) Acquisition or construction of new facilities or additions to existing facilities. (b) Acquisitiou of land necessary for purposes of subdivision (a). (c) Remodeling of existing facilities for energy conservation pur- poses. (d) Bemodeling of existing facilities to provide access for the disabled. (e) Behabilitation of existing facilities to bring them into compli- ance with cucrent health and safety requirements for public facilities. (f) Procurement and installation of shelving fastened to the struc- ture, and built-in equipment required to make a facility fully operable. (g) Payment of fees charged by architects, engineers, and other design professionals whose services are required to plan and execute a project authorized pursuant to this chapter. 19958. No grant funds authorized pursuant to Section 19956 or matching funds provided pursuant to Section i19962 shall be used by a recipient for any of the following purposes: I, (a) Books and other library materials. (b) Administration costs of the project, including, but not limited to, the costs' of all of the fqllowing: (1) Preparation of the grant application. (2) Procurement of matching funds. (3) Conducting an election for obtaining voter approval of the project. (4) Plan checking and code compliance inspections. (c) Interest or other carrying charges Col financing the project, including, but not limited to, costs of loans br lease-purchase agree- ments in excess of the direct costs o/any of Ithe authorized purposes specified in Section 1995Z (d) Any ongoing operating expenses for the facility, its personnel, supplies, or any other library operations. 19959. All construction contracts for p~ojects funded in part through grants' awarded pursuant to this chapter shall be awarded through competitive bidding pursuant to Part 3 (commencing with Section 20100) of the Public Contract Code. 19960. This chapter shall be administered by the State Librarian, who shall adopt rules, regulations, and policie~ for the implementation of this chapter. 19961. A city, county, city and county, or district may apply to the State Librarian for a grant pursuant to this chapter, as follows.. (a) Each application shall be for a project for a purpose authorized by Section 1995Z , (b) The applicant shall request not less than thirty-five thousand dollars ($35,000) per project. , (c) No application shall be submitted for a project for which construction bids already have been advertised. 19962. (a) Each grant recipient shall provide matching funds from any available source in an amount equal to 35 percent of the costs of the project. The remaining 65 percent of the cost~ of the project shall be provided through allocations from the fu?d. (b) Qualifying matching funds shall be cOsh expenditures in the categories specified in Section 19957 which a~e made no earlier than three years prior to the submission of the ~pplication to the State Librarian. Except as otherwise provided in subdivision (c), in-kind expenditures shall not qualify as matching futads. (c) Land donated or otherwise acquired for use as a site for the facility, including, but not limited to, land purchased more than three years prior to the submission of the applicatio~ to the State Librarian, may be credited towards the 35 percent matching funds requirement at its appraised value as of the date of the applidation. (d) Cash expenditures not to exceed 10 l~ercent for furnishings required to make the facility fully operable may be credited towards the 35 percent matching funds requirement. The ~cipient shall certify to the board that these furnishings have art estimated useful life of not less than 10 years. (e) Architect fees for plans and drawings fo~ library renovation and new construction, including plans and drawings purchased more than three years prior to the submission of the application to the State Librarian, may be credited towards the 35 percent matching funds requirement. 19963. An amount not to exceed 1 percent of the cost of construction of the project may be used for appropriate works of art to enhance the facility. ] 19964. (a) The estimated costs ora projectflyr which an application is submitted shall be consistent with normal public construction costs in the applicant's area. (b) An applicant wishing to construct a p~oject with costs which exceed normal public construction costs in th~ applicant's area may apply for a grant in an amount not to exceed 6~ percent of the normal costs if the applicant certifies that it is ca~able of financing the remainder of the project costs from other sourdes. 19965. Once an application has been approved by the board and included in the State Librarian 's request to the committee, the amount of funding to be provided to the applicant shall not be increased. Any actual changes in project costs shall be the full responsibility of the applicant. In the event that the amount of funding Which is provided is greater than the cost of the project, the applicant shall return that portion of the funding which exceeds the cost of the project to the State Librarian. 19~66. In reviewing applications, the board Shall consider all of the following factors: (a) Needs of urban and rural areas. (b) Projected population growth. (c) Changing concepts of public library service. (d) Distance of the proposed project from Other existing and pro- posed facilities. (e) Age and condition of the facility. 1996Z (a) A facility, or the part thereof, acquired, constructed, Continued on page 121 G88 33 85 Library Construction and Renovation Bond Act of 1988 Argument in Favor California is in the midst of extraordinary population and economic growlh. THIS YEAR ALONE, CALIFOR- NIA'S POPULATION HAS GROWN BY 600,000 PEO- PLE! Like many important community services, libraries have been unable tO keep pace. The 'results are: · MANY CALIFORNIA COMMUNITIES DO NOT HAVE A LOCAL LIBRARY. · Many communities rely on old structures that need to be expanded~ strengthened for earthquake safety, made more accessible to the handicapped, or remod- eled for efficiency. SOME LIBRARIES CURRENTLY IN USE WERE BUILT AS FAR BACK AS 1852--MANY PRIOR TO 1930. · Important library programs, LIKE NEW PRO- GRAMS FOR ~CHILDREN AND ADULTS JUST LEARNING TO READ, have placed added demands on library facilities. Proposition 85 is la common sense, cost-effective ap- proach to address these critical problems. Your yes vote for Proposition 85 will NOT raise taxes. Proposition 85 establishes a partnership of state and local government, in which the state pays only 65% of the Rebuttal to Argument in The proponents Of this bond measure are telling less than the truth when they say Proposition 85 will not raise taxes. They fail to nOte that bonds are backed by the full faith and credit of the State of California. When the word "state" is mentioned, this really means "taxpayer." In 1979 voters passed Proposition 4 by a 74% majority. This measure, kno~vn as the "Gann Spending Limit," limits the annual rise in state budgets. Politicians like Senators Keene and Maddy are frustrated by their inabil- ity to directly spend more of the taxpayers' money. Since bonds are exempt f~:om the spending limits, their use has grown phenomenally over the last eight years. There are $3,282,000,000 in bonds on this ballot alone! It's time to stop !approving every bond measure that comes up for a vote. You may love a certain program or of Proposition 85 construction or renovation cost. The local community must cover the remaining 35%. That means a library must be a priority to the local community before the state will help finance it. That also means Proposition 85 will actually result in over $115 million in library construction and renovation. Libraries are the open, community-based, public way we make our heritage, literature, knowledge, and skills available to all Californiaias. Daniel Boorstin, former Director of the Library of Congress, said: "Libraries remain the meccas of self-help, . . . where there are no entrance examinations and no diplomas, and where we can enter at any age." We need safe and efficient libraries to serve our communities. We need Proposition 85! BARRY KEENE State Senator, 2nd District Senate Majority Leader KEN MADDY State Senator, 14th District Senate Minority Leader HELEN H. LINDSEY President, California State PTA Favor of Proposition 85 service, but always remember that someone must pay. And that someone is YOU! Proposition 85 creates a dangerous precedent of a "partnership of state and local government." This just means that state officials will be interfering in local affairs more than they do already. Proposition 85 is expensive, flawed, and deceptive. VOTE NO on Proposition 85. TED BROWN Chairman, Libertarian Part~t of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Libertarian Party of California Candidate for U.S. Congress, 30th District SARAH E. FOSTER Libertarian Candidate for State Senator, 23rd District 34 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Library Construction and Renovation Bond Act of 2988 Argument Against Proposition 85 The State Legislature asks you to approve $75 million in bonds to improve public library facilities. We urge you to vote NO. Libraries are usually run by cities and counties. Since when has the state government been responsible for the upkeep of libraries? The state already requires spending for numerous programs in California's cities and counties. This appears to be further interference in an area where it is completely unnecessary. In any event, this measure is unfair to most Califor- nians. Less than one-third of the people use library services, yet they are subsidized by the other two-thirds of the non-library-patronizing public. Poor and lower income residents must pay taxes for services that are used primarily by middle- and upper-middle-class white collar individuals. This subsidy should end. Many libraries across the country already charge for special services, such as loan- ing best sellers, giving interlibrary loans, handling equip- ment rentals, etc. Why shouldn't library patrons pay either an annual membership fee or a by-the-book rental fee for regular library services? Let those who want a service pay for it! The first library in the United States was a private subscription library founded by Benjamin Franklin in 1731. Many communities today use the same method by charging an annual fee and by using volunteer staff. Rebuttal to Argument Despite claims of opponents of Proposition 85, the State of California has a history of commitment to public libraries dating back to the turn of the century. Provisions for a statewide system of local public libraries are firmly fixed in state law, not local ordinances. The opponents' statement that bond funds would be used to run libraries which are "usually run by cities and counties" is absolutely misleading. The only use of these funds is for projects to build or renovate library struc- tures. Local communities would continue to retain oper- ational control of libraries, and pay operational costs as they deem necessary. State bond funds are used to build local schools, acquire community parks, and build county jails. Community libraries supplement our system of free public education. To argue that bond funding should not be available for library construction denies education the top priority given it by the State Constitution. $5 Others have contracted library services to private com- panies. If a service is worthwhile, as libraiies certainly are, it will be provided in the free market. Libraries receive extensive gifts and endowments eve~i now. Such contri- butions would increase if there was a lack of government financing. Please remember when you cast your ballot that there are $3,282,000,000 worth of bonds bqing proposed. This measure by itself may seem small, bu~ it is part of a much larger picture. Remember that a "Bond" is defined as "anything that binds, fastens, or confines; imprisonment; captivity." Californians will be stuck paying the bill for 30 YEARS. A vote for Proposition 85 will put the state government into yet another area where it doesnrt belongmand will put us in debt at the same time. Votei NO on Proposition 85 and vote NO on all the other bond measures on this ballot. TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd l)istrict KIM J. GOLDSWORTHY Southern Vice Chairman, Libertari¢In Party of California Candidate for U.S. Congress, 30th l~istrict SARAH E. FOSTER Libertarian Candidate for State Senator, 23rd District Against Proposition 85 It is appropriate to use bonds for pu~lic library facilities because the facilities will be available for public use throughout the period when the bonds are being paid off. Bond financing is also the mechanism preferred by private industry to fund major building projects. Califor- nia has a AAA bond rating, and, the r~onpartisan Legisla- tive Analyst has concluded that ther~is no evidence that California's current debt burden is excessive or poses any significant fiscal threat." We need to have local libraries to'serve our growing communities. Proposition 85 is the logic,al, cost-effective way to build those libraries. Vote "YES' on Proposition 85. MARIAN BERGESON State Senator, 37th District TOM BRADLEY Mayor, City of Los Angeles RICHARD P. SIMPSON Executive Vice President California Taxpayers'Association G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 35 5 COunty Correctional Facility Capital Expenditure and YOuth Facility Bond Act of 1988 Official Title and Summary Prepared by the Attorney General COUNTY CORRECTIONAL FACILITY CAPITAL EXPENDITURE AND YOUTH FACILITY BOND ACT OF 1988. This act provides for a bond issue of five hundred million dollars ($500,000,000) to provide funds for the construction, reconstruction, remodeling, replacement, and deferred maintenance of county correctional facilities and county juvenile facllities and to provide funds to youth centers and youth shelters. Final Vote Cast by the Legislature on SB 1664 (Proposition 86) Assembly: Ayes 64 Senate: Ayes 37 Noes 3 Noes 0 Background Jails and Juvenil~ Detention Facilities. California's 58 counties house adults and juveniles who are serving time for committing a c~ime or are awaiting court decisions in jails and detention !facilities. In 41 counties, these facilities are holding more people than they were d~signed to house. In 24 counties with overcrowded conditions, courts have imposed limits on the number of people that may be held at any one time. Since 1981, the vbters have authorized the state to sell $1 billion in general obligation bonds to raise money to expand and improye county jail and juvenile facilities. (General obligation bonds are backed by the state, mean- ing that the state will use its taxing power to assure that enough money is available to pay off the bonds.) All of this money is fully icommitted for various projects. The Board of Corrections estimates that after counties have used all existing resources (including their own funds) for jail construction and renovation, plus an addi- tional $40 million proposed in Proposition 80 (also on this ballot), the jails w~ll have the capacity to house about 65,000 people by 1990. The board states there will be a shortage of space if or an estimated 11,500 inmates in county jails at that :ime. By 1995, the board estimates that the statewide average daily jail population will increase to about 105,000 people. Youth Centers and Youth Shelters. Private nonprofit and local government agencies throughout the state provide a variety of programs and services to youth, including recreatic?n, delinquency prevention, counsel- ing, and shelter. Tl'le Department of the Youth Authority provides about $1.5 million annually to various agencies for support of these activities. Currently, the state pro- vides no money to Construct facilities for these programs. proposal This measure would authorize the state to sell $500 million in general obligation bonds to raise money for county correctional facilities, county juvenile facilities, youth centers and !youth shelters. The money would be allocated as follows: · $410 million for construction, reconstruction, remod- eling, deferred maintenance, and replacement of county correclSonal facilities. Analysis by the Legislative Analyst · $65 million for construction, reconstruction, remod- eling, deferred maintenance, and replacement of county juvenile facilities, and · $25 million for the purchase of equipment and for acquiring, renovating, or constructing youth centers or youth shelters. In order for a county to receive bond money for jails or juvenile detention facilities, it would be required to do the following: 1. Provide matching funds of 25 percent of the project's costs (this requirement could be modified or waived by the Legislature), 2. Adopt a plan to prohibit the detention of juveniles in jails unless the county is permitted by law to keep them there, 3. Show that it has adequate facilities for mentally ill inmates and persons arrested because of intoxication, or that it has a plan to provide services to these persons, and 4. Show that it has made the greatest applicable use of alternatives to keeping persons in jail, such as work release, own recognizance release, or weekend work programs. The amount of money a county would be eligible to receive would be determined by the Legislature. Fiscal Effect Direct Cost of Paying Off the Bonds. The state would make principal and interest payments on these bonds from the state's General Fund over a period of about 20 years. Assuming that all of the bonds were sold at an interest rate of 7.5 percent, the cost would be about $900 million to pay off the principal ($500 million) and interest ($400 million). The average payment for principal and interest would be about $40 million per year. Borrowing Costs for Other Bonds. By increasing the amount that the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated. Lower State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making other taxable investments, the state would collect less taxes. This loss of revenue cannot be estimated. 36 G88 Text of Proposed Law ! This law proposed by Senate Bill 1664 (Statutes of 1988, Ch. 264) is ities shall only include items with a useful life ~f at least 10 years. submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Penal Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Title 4.8 (commencing with Section 4496) is added to Part 3 of the Penal Code, to read: TITLE 4.8. COUNTY CORRECTIONAL FACILITY CAPITAL EXPENDITURE AND YOUTH FA CILITY BOND ACT OF 1988 CHAPTER ]. GENERAL PROVISIONS 4496. This title shall be known and may be cited as the County Correctional Facility Capital Expenditure and Youth Facility Bond Act of 198s. 4496.02. The Legislature finds and declares all of the following: ia) While the County Jail Capital Expenditure Bond Act of 1981, the County Jail Capital Expenditure Bond Act of 1984, and the County Correctional Facility Capital Expenditure Bond Act of 1986 have helped eliminate many of the critically overcrowded conditions found in county correctional facilities in the state, many problems remain. (b) Numerous county jails and juvenile facilities throughout Cali- fornia are dilapidated and overcrowded. (c) Capital improvements are necessary to protect life and safety of the persons confined or employed in jail facilities and to upgrade the .health and sanitary conditions of those facilities. id) County jails are threatened with closure or the imposition of court supervision if'health and safety deficiencies are not corrected immediately. (e) Due to fiscal constraints associated with the loss of local property tax revenues, counties are unable to finance the construction of adequate jail and juvenile facilities. if) Local facilities for adults and juveniles are operating over capacity and the population of these facilities is still increasing. It is essential to the public safety that construction of new facilities proceed as expeditiously as possible to relieve overcrowding and to maintain public safety and security. 4496.04. As used in this title, the following terms have the following meanings: ia) "Committee" means the 1988 County Correctional Facility Cap- ital Expenditure and Youth Facili~ Finance Committee created pursu- ant to Section 4498.34. (b) "Fund" means the 1988 County Correctional Facility Capital Expenditure and Youth Facility Bond Fund created pursuant to Section 4498.10. (c) "County correctional facilities" means county jail facilities, including separate facilities for the care of mentally ill inmates and persons arrested because of intoxication, but does not include county juvenile facilities. id) "County juvenile facilities" means county juvenile halls, juvenile homes, ranches, or camps, and other juvenile detention facilities. (e) "Youth center" means a facility where children, ages 6 to 17, inclusive, come together for programs and activities, including, but not limited to, recreation, health and fitness, delinquency prevention such as antigang programs and programs fostering resistance to peer group pressures, counseling for problems such as drug and alcohol abuse and suicide, citizenship and leadership development, and youth employ- ment. if) "Youth shelter" means a facility that provides a variety of services to homeless minors living on the street or abused and neglected children to assist them with their immediate survival needs and to help reunite them with their parents or, as a last alternative, to find a suitable home. CHAPTER 2. PROGRAM 4498.10. The proceeds of bonds issued and sold pursuant fo this chapter shall be deposited in the 1988 County Correctional Facility Capital Expenditure and Youth Facility Bond Fund, which is hereby created. 4496.12. ia) (1) Moneys in the fund, up to a limit of four hundred ten million dollars ($410,000,000), may be available for the construc- tion, reconstruction, remodeling, and replacement of county correc- tional facilities, and the performance of deferred maintenance on county correctional facilities. However, deferred maintenance for facil- G88 (2) Moneys in the fund, up to a limit of six,y-five million dollars ($65,000,000), may be available for the constrUction, reconstruction, remodeling, and replacement of county juven~'le facilities, and the performance of deferred maintenance on countyijuvenile facilities, but may only be used for the purpose of reducing overcrowding and eliminating health, fire, and life safety hazards4 (3) Expenditure shall be made only if countylmatching funds of 25 percent are provided as determined by the Legislature, except that this requirement may be modified or waived by tho Legislature where it determines that it is necessary to facilitate the exl~editious and equitable construction of state and local correctional facilk'ties. (b) Moneys in the fund, up to a limit of twet~ty-five million dollars (825,000,000), may be available for the purpose, of making awards to public or private nonprofit agencies or joint ventures, or a combination of those entities, for purpose of purchasing equipment and for acquir- ing, renovating, or constructing youth centers or~outh shelters, as may be provided by statute. Fifteen million dollars ($15,000,000) shall be available for youth centers and ten million dollars ($10,000,000) shall be available for youth shelters and shall be distributed by the Depart- ment of the Youth Authority. However, any remaining money that has not been awarded under this subdivision within two years of the effective date of this title shall be available for both youth centers and youth shelters. 4496.16. In order to be eligible to receive funds for the purposes specified in subdivision ia) of Section 4496.12 deO'ved from the issuance of bonds under this title, a county shall do all qf the following: ia) Adopt a plan to prohi'bit the detention oflall juveniles in county jails unless otherwise authorized by law. (b) Demonstrate that it has adequate facilities for mentally ill inmates or detainees and for those persons arrested because of inebria- tion, or demonstrate that it has a plan for the ,rovision of services to these persons. (c) Demonstrate that it has utilized, to tlle greatest practicable extent, alternatives to jail incarceration. 4496.19. Money in the fund may only be expended for projects specified in this chapter as allocated in appropriations made by the Legislature. CHAPTER 3. FISCAL PROVISIONS 4498.30. Bonds in the total amount of five hundred million dollars ($500,000,000), exclusive of refunding bonds, o~ so much thereof as is necessary, may be issued and sold to provide ~: fund to be used for carrying out the purposes expressed in this t~]tle and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid and binding obligation of the State of California, and the full faith and credit of t~e State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable, i 4496.32. The bonds authorized by this title shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (cOmmencing with Section 167£0) of Part 3 of Division 4 of Title £ of the Government Code), and all of the provisions of that law apply to the bo~ds and to this chapter and are hereby incorporated in this chapter as {hough set forth in full in this title. 4496.34. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this title, the 1988 County CorreCtional Facility Capital Expenditure and Youth Facility Finance Committee is hereby created. For purposes of this title, the finance committeb is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Governor, the ContrOller, the Treasurer, the Director of Finance, or their designated representatives. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Board of Corrections is designated the "board. 4498.36. The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant ito this chapter in order to carry out the actions specified in Section ~496.12 and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is Continued on page 122 37 $6 County Correctional Facility Capital Expenditure and YoUth Facility Bond Act of 1988 Argument in Favor Proposition 86 is an important opportunity to address the problems arising from overcrowded county jails, juvenile halls, and~youth facilities throughout the state. California is growing at a rapid rate and that growth is placing an enormous demand on county jails. In 24 of the state's 58 counties the courts have stepped in and set limits on the number of inmates that may be held in county jails at any lone time. Twenty-eight counties have been sued becaus~ of the general conditions in their jail facilities, and 40 Counties have seriously overcrowded facilities. The simple fact is that there is a valid need for more jails if we are to maintain public safety. However, it is important for you, the voter, to recog- nize that Proposition 86 does not just encourage the building of more jails in response to the overcrowding. Proposition 86 requires counties to provide matching funds for construction. This requirement has the effect of forcing design and operational efficiencies. The counties must also demonstrate they have developed alternative detention plans for public inebriates and mentally ill inmates before funding is granted. This provision encour- ages further efficiency because it can be unnecessarily expensive or simply inappropriate to keep these persons in jail when other more suitable and equally safe arrange- ments can be developed at far less cost. of Proposition 86 County juvenile facilities are also plagued by over- crowding and significant fire and safety deficiencies. These problems must be addressed before these facilities also become the target of lawsuits. Our ability to keep county juvenile halls and camps operating effectively will greatly enhance our efforts to redirect troubled youth before it's too late. Proposition 86 also authorizes $25 million for youth centers and youth shelters. This is an important step toward recognizing our obligation to provide guidance and support for youth in need and shelter for those abused and neglected children who, through no fault of their own, are without a home of any kind: This measure has bipartisan support in the Legislature and the support of the Governor. It is also supported by local law enforcement, county officials and community groups. It deserves your support as well. ROBERT PRESLEY State Senator, 36th District SHERMAN BLOCK Sheriff, Los Angeles County BARBARA SHIPNUCK Supervisor President, County Supervisors Association of California Rebuttal to Argument in County jails h°ld convicts who have received jail sentences of one year or less, and prisoners waiting for trial. In some counties half the prisoners are awaiting trial. For many of thes~ inmates, the court process could be speeded up. Currently misdemeanor cases drag on for months, while felo'~W.y cases take over a year. The victims should have a right to see their assailants have speedy trials, as required! by the U.S. Constitution. The most extreme examplei of judicial dawdling has been the "Night Stalker" case in Los Angeles. The suspect has been in the county jail sihce his arrest over three years ago, and the trial is just beginning after all this time. The main reasor~ for overcrowded jails, though, is that many prisoners doi not belong there. Those charged with victimless crimes, such as prostitution, drug use, gam- bling, traffic warr~Ints, etc., should be released immedi- ately. For those prlsoners who deserve punishment, such Favor of Proposition 86 as pickpockets, car thieves, assaulters, etc., restitution to their victims should be the first priority, and house arrest should be at least one alternative to imprisonment. The proponents of Proposition 86 want to ignore the government policies that foster rises in criminal activity and just build more jails where society's problems can be locked away and forgotten. This philosophy does not work. A vote against Proposition 86 is a vote for new thinking, common sense, and a much-needed change in our failed judicial system. Vote NO on Proposition 86. TED BROWN Chairman~ Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman~ Libertarian Party of California Candidate for U.S. Congress, 30th District WILLIAM T. "BILL" LAKE Libertarian Candidate for State Assembly, 46th District 38 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 County Correctional Facility Capital Expenditure and Youth Facility Bond Aet of 1088 Argument Against Proposition 86 Proposition 86 asks for $500 million in bonds for the construction of county jails and juvenile detention facili- ties. We urge you to vote NO. Please note that there are $3,286,000,000 in bond pro- posals on this ballot alone. Among them is Proposition 80, which calls for $817 million for state prisons. Proposition 86 is remarkably similar, except it is designed to pay for county facilities. Since when does the state government pay for county jails and youth camps? Such projects are usually planned and financed locally, like the similar Proposition A, which was passed by Los Angeles County voters in November 1986. Proposition 86 is just another example of the state government trying to expand its sphere of influence. In any event we would oppose this measure no matter which set of taxpayers was to pay for it. County jails usually house minor offenders who cannot make bail. At best, they house some dangerous people before they go on trial. The key to making us safer is not automatically locking everybody up for minor infractions. The key to our safety is a shift in law enforcement priorities. Did you know that you could go to jail if you don't pay a traffic ticket or a jaywalking ticket? It's true, and it's an outrageous practice that must end. Many people are in county jails on such warrants, and no one can claim that these individuals are dangerous. The laws are arbitrary, and enforcement is selective. They are used to harass individuals unfairly. This example only looks at county jails. Youth facilities 86 are full of kids who also shouldn't be there, like runaways, curfew violators, etc. All that kids learn in institutions like these is how to commit violent crimes. There is a great need for a shift in priorities in law enforcement. A recent study found that more than 50% of a police officer's time is spent dealing with victimless crimes, like prostitution, pornography, gambling, drug use, and public drunkenness. If traffic violations are added, it is easy to see that there is little time left for officers to protect us against murderers, rapists, thieves, and defrauders. Only crimes where someone violates the rights of another are crimes, and thus deserve punishment. Any other use of law is unconstitutional and leads to the persecution of people who choose alternative lifestyles that may offend, but not harm, others, To vote half a billion dollars for more county jails and youth camps is to vote for more of a police state. A deep and serious review of the reason people are being impris- oned is needed before there is talk of locking more away. Send a message to the politicians. We don't want California turning into one big detention center. Vote NO on Proposition 86. TED BROWN Chairman, Libertarian Party of California Candidate for U.S. Congress, 22nd District KIM J. GOLDSWORTHY Southern Vice Chairman, Libertariar~ Party of California Candidate for U.S. Congress, 30th District WILLIAM T. "BILL" LAKE Libertarian Candidate for State Asselnbly, 46th District Rebuttal to Argument Against Proposition 86 After reading the opponents' arguments, it's obvious they are completely uninformed. The opponents claim county jails mostly house minor offenders. Let's be realistic. No one goes to jail for failing to pay the fine on one traffic ticket. For minor offenses sheriffs operate alternative detention programs where qualified offenders work off their sentences doing ser- vices of benefit to the community. Further, the Board of Corrections estimates that 75% of all pretrial jail inmates have been charged with felonies involving murder, rape, armed robbery, drugs, etc. The truth is, county jails are holding very dangerous criminals and without more space these persons could be back on the streets. And we're sure you join us in rejecting the opponents' suggestion, that law enforcement should ignore crimes involving drugs, gambling and pornography. Finally, providing funding for youth centers and shel- ters is not voting for a police state, as the opponents claim. It's voting to aid youth who need ouri help and support. The old adage, "An ounce of prevention is worth a pound of cure," has never been more true When dealing with these problems. Without adequate jail space law ex~forcement will be hampered and your public safety could be compromised. Without adequate juvenile and youth facilities, our efforts to help the troubled and needy youth of this state will be diminished. Don't let that happen. Vote YES on Proposi- tion 86. ROBERT PRESLEY State Senator, 36th District SHERMAN BLOCK Sheriff, Los Angeles County BARBARA SHIPNUCK Supervisor President, County Supervisors Assoct~tion of California G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any iofficial agency 39 87 Property Tax Revenues. Redevelopment Agencies Official Title and Summary Prepared by the Attorney General PROPERTY TAX !REVENUES. REDEVELOPMENT AGENCIES. LEGISLATIVE CONSTITUTIONAL AMEND- MENT. Presently, if a taxing agency increases the tax rate for revenue to repay its bonded indebtedness for the acquisition or improvement of real property, a portion of the revenues raised for this purpose is allocated to redevelopment agencies having property affected by the rate increase. The revenues received by the redevelopment agency don't have to be applied to repayment of the bonded indebtedness. This measure authorizes the Legislature to require all revenues produced by the rate increase go to the taxing agency for purpose of the repayment of its bonded indebtedness. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, this measure would have no fiscal effect because it requires legislative implementation. If implemented, the amount of property tax revenues received by redevelopment agencies in 1989-90 and later years would be reduced in an amount whi¢h would depend on the number and value of bonds approved by the voters. There would be no fiscal effect on the state or the taxing agencies which impose property taxes to pay off general obligation bonds. Final Vote Cast by the Legislature on ACA 56 (Proposition 87) Assembly: Ayes 72 Senate: Ayes 33 Noes 0 Noes 0 Background The California Constitution permits redevelopment agencies to create projects to eliminate blight and pro- mote economic grgwth. The redevelopment agency gen- erally receives most of the property tax revenue (called "tax increment reyenue") that results from the increase in the value of taxable property within the area of a redevelopment project. Other governments, such as cit- ies, counties, and ~Special districts, generally continue to receive the same hmount of property tax revenue that they received prior to the formation of the redevelop- ment project. Under current law, a redevelopment agency using tax increment revenue receives additional property tax rev- enue whenever a local government increases its property tax rate to pay off its general obligation bonds. Specifi- cally, the redevelopment agency receives the amount of revenue generated by applying the local government's increased property tax rate to the increase in the value of taxable property that has occurred since the formation of the redevelopmenI project. Proposal , This constitutiorlal amendment authorizes the Legisla- ture to prohibit rddevelopment agencies from receiving any of the property tax revenue raised by increased property tax rates imposed by local governments to make Analysis by the Legislative Analyst payments on their bonds. Thus, all revenues raised for this purpose would go to the local governments respon- sible for paying off the bonds. As a result, local govern- ments would impose a lower property tax rate for bond financing. The measure would apply only to tax rates levied to finance bonds approved by the voters on or after January 1, 1989. Fiscal Effect By itself, this measure has no fiscal effect because it merely authorizes the Legislature to implement its pro- visions. If the Legislature implements this measure, there would be no significant effect on state costs or revenues. However, the measure could reduce the amount of property tax revenues received by redevelopment agen- cies in 1989-90 and later years. Specifically, redevelop- ment agencies would no longer receive an increase in their property tax revenues whenever a local agency's voters approve certain general obligation bond measures. The size of this revenue reduction would depend on the number and value of these general obligation bonds approved by the voters in future years. The measure would have no effect on the amount of revenues received by local governments that impose increased property taxes to pay off their general obliga- tion bonds. 4O G88 Property Tax Revenues. Redevelopment Argument in Favor of Proposition 87 Proposition 87 corrects a flaw in the Constitution that forces some cities, counties, and school districts to levy higher property tax rates than necessary to repay local general obligation bonds. Currently, the Constitution requires that community redevelopment agencies be given a share of all property taxes collected within their boundaries--even those taxes levied by some other local government to repay bonds. Because of this diversion of tax revenues, the other local government must levy a higher tax rate than necessary to raise enough money to meet its bond obligations. And local citizens must pay higher property taxes than neces- sary to retire the bonds. Proposition 87 will correct this problem. Proposition 87 will dedicate ALL newly approved property tax revenues for bonds to bond repayment. Proposition 87 will allow local agencies to pay off their new bonds with LOWER PROPERTY TAX RATES. Proposition 87 will allow local agencies to pay off their new bonds faster. ~ Proposition 87 will assure that any new property taxes approved for bonds will be used ONLY FOR THE PURPOSES INTENDED BY THE VOTERS. The future of California's economic growth and quality of life will in large part depend on our ability to meet our tremendous needs for schools, roads, water, parks, and other public services. Many of these services will be financed by local voter-approved bonds. We owe it to the taxpayers of California to finance this economic growth with the LOWEST POSSIBLE PROPERTY TAX RATES. Please join us in voting YES on Proposition 87. JACK O'CONNELL Member of the Assembly, 35th DistriCt RICHARD P. SIMPSON Executive Vice Presiden~ California Taxpayers Association BOB EPPLE Candidate for the Assembly, 63rd District No argument against Proposition 87 was filed Text of Proposed Law appears on pages 122-123 G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 41 $8 Deposit of Public Moneys Official Title and Summary Prepared by the Attorney General DEPOSIT OF PUBLIC MONEYS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently, the State Constitution authorizes the Legislature to provide for the deposit of public moneys in any bank, savings and loan association, or in' any credit union in California. This measure amends the State Constitution to authorize the Legislature to prcvide for the deposit of public moneys in any federally insured industrial loan company in California. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: No direct fiscal effect. However, adoption could result in greater interest income to the state and local governments by increasing competition for the deposit of public moneys. Final Vote Cast by the Legislature on ACA 63 (Proposition 88) Assembly: Ayes 70 Senate: Ayes 37 Noes 1 Noes 0 Analysis by the Legislative Analyst Background The California Constitution authorizes the Legislature to permit the deposit of public moneys in banks, savings and loan associations, or credit unions located in Califor- nia. Currently, the Constitution does not authorize the deposit of such moneys in industrial loan companies. Public moneys are funds in the custody of state and local governments. In general, industrial loan companies are financial institutions which attract investment funds with investment certificates and, in turn, loan these funds for various purposes. The State Superintendent of Banks oversees deposits of public moneys made by local governments. The State Treasurer performs a similar function for deposits of public moneys made by the state. Proposal This constitutional amendment authorizes the Legisla- ture to permit the deposit of public moneys in federally insured industrial loan companies located in California. Fiscal Effect By itself, this measure has no direct fiscal effect. The legislation to implement this measure could result in greater interest income to the state and local govern- ments by increasing competition for the deposit of public moneys. 42 G88 Deposit of Public Moneys Argument in Favor of Proposition 88 A yes vote on Proposition 88 will help us as taxpayers get the most for our tax dollars. Proposition 88 is common- sense legislation that benefits taxpayers throughout Cali- fornia by ensuring state and local governments can get the most competitive interest rates on deposits of public funds backed b~t the full faith and guarantee of the federal government. Proposition 88 will increase funds available for needed government services WITHOUT increasing taxes. Public funds have been deposited for many years in federally insured banks and savings and loan associations. In 1986, California overwhelmingly voted to allow public deposits in credit unions. Proposition 88 similarly allows deposits of public funds in industrial loan companies insured by the Federal Deposit Insurance Corporation (FDIC). Just like individuals and businesses, state and local governments (including school, water and park districts, as well as cities and counties) deposit funds in financial institutions to earn interest until needed. Proposition 88 is a nonpartisan technical amendment that includes feder- ally insured industrial loan companies along with banks, savings and loans and credit unions on the list of autho- rized deposit institutions. Here's why allowing deposits in federally insured in- dustrial loan companies makes sense: · Proposition 88 provides more options to public fi- nance officers responsible for reviewing and select- ing financial institutions, which encourages competi- tion for government deposits. · More competitive interest rates will earn greater interest income on taxpayer dollars since industrial loan companies typically offer slightly higher interest rates. $8 · Public deposits in industrial loan companies are as safe as those in banks--they are iFDIC insured and subject to the same regulatory re~luirements as pub- lic deposits in other financial institutions. · Industrial loan companies have a 10ng history of more than 69 years of service to California savers, consum- ers and small businesses. We believe governments should maximize interest in- come on deposits of taxpa~ter dollars u~hile preserving the safety of public funds. Industrial loan companies offer highly competitive interest rates on goYernment deposits. SO PROPOSITION 88 WILL SAVE TAXPAYER MONEY FOR NEEDED PUBLIC SERVICES BY EARNING MORE ON DEPOSITS. Federall~l insured industrial loan institutions provide depositors the same protections offered by banks: · Industrial loan companies are regulated by the State of California and the FDIC. · More than $3,000,000,000 is currently deposited in over 400 industrial loan company offices statewide. · The State Banking Department regulates the deposit of public funds. Proposition 88 was overwhelmingly approved by the State Legislature--by votes of 37-0 in the Senate and 70-1 in the Assembly~because it saves, taxpayers dollars, encourages competition for deposits of public funds, and provides additional safe and secure ideposit options to public finance officers. Please join us in voting YES ON PROPOSITION 88. PATRICK JOHNSTON Member of the Assembly, 26th District JOHN LEWIS Member of the Assembly, 67th District GRAY DAVIS State Controller No argument against Proposition 88 was filed Text of proposed law appears on page 123 G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by anyl official agency 43 Governor's Parole Review Official Title and Summary Prepared by the Attorney General GOVERNOR'S PAROLE REVIEW. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Provides that no decision of the parole authority which grants, denies, revokes, or suspends the parole of a person sentenced to an indeterminate term upon conviction of murder shall become effective for a period of 30 days. Permits Governor to review the decision during this period subject to statutory procedures. States that the Governor may only affirm, modify, or reverse a parole atlthority decision on the basis of the same factors which the parole authority may consider. Requires Governor to report to the Legislature the pertinent facts and reasons for each parole action. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: The fiscal impact of this measure is unknown and depends on the actions of the Governor. Grants of parole would result in relatively minor savings. Denials of parole could result in rel~'ttively minor costs. Final Vote Cast by the Legislature on SCA 9 (Proposition 89) Assembly: Ayes 63 Senate: Ayes 29 Noes 11 Noes 5 Analysis by the Legislative Analyst Background Under California statutes, adults who commit murder are sentenced to an indeterminate term in state prison or, in the case of firsti degree murder, death. A minor who commits murder When he or she is 16 years of age or older may be dealt with Under the juvenile court law or may be tried as an adult arid sentenced accordingly. If tried as an adult, however, the death penalty may not be imposed if the person was ur~der the age of 18 at the time of the commission of the crime. Other minors who commit murder may be qommitted to the Department of the Youth Authority for an indeterminate period, although they may be confined only until the age of 25 unless an order or petition fOr further detention has been made. The parole releaSe date for state prison inmates serving an indeterminate lterm is set by the Board of Prison Terms. The date of release on parole for minors commit- ted to the Youth Authority is set by the Youthful Offender Parole Board. In making parole decisions, the Board of Prison Terms and the Youthful Offender Parole Board are required to consider many factors, including the following: the seriousness of the inmate's offense; the safety of the publiC; and statements from the public. Under the CalifOrnia Constitution, the Governor may grant a reprieve, pardon, or commutation after a person is sentenced. The !Governor may not grant a pardon or commutation to a iperson who has been twice convicted of a felony, unless the action is recommended by four members of the State Supreme Court. Proposal This constitutional amendment would allow the Gov- ernor to approve, modify, or reverse any decision by the parole authority (Board of Prison Terms or Youthful Offender Parole Board) regarding the parole of persons who are sentenced to an indeterminate term for commit- ting murder. The Governor, subject to specified proce- dures, would have 30 days from the date of the board's parole action to review the decision. In reviewing parole decisions, the Governor could consider only that informa- tion which the Board of Prison Terms and the Youthful Offender Parole Board are required to consider in mak- ing their parole decisions. Fiscal Effect The fiscal impact of this constitutional amendment is unknown and would depend on the actions of the Gov- ernor. The measure could result in relatively minor state savings'if the Governor decided to release a person from prison or the Youth Authority after the person's parole had been denied by the Board of Prison Terms or the Youthful Offender Parole Board. The measure could, however, result in relatively minor state costs if the Governor decided to deny parole to a person who would have been granted parole by the Board of Prison Terms or the Youthful Offender Parole Board. 44 G88 Text of Proposed Law This amendment proposed by Senate Constitutional Amendment 9 (Statutes of 1988, l~esolution Chapter 6,3) expressly amends the Constitution by amending a section thereof; therefore, new provisions proposed to be added are printed in italic tyl~e to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE V, SECTION 8 SEC. 8. (a) Subject to application procedures pro- vided by statute~ the Governor, on conditions the Gover- nor deems proper, may grant a reprieve, pardon, and commutation, after sentence, except in case of impeach- ment. The Governor shall report to the Legislature each reprieve, pardon, and commutation granted, stating the pertinent facts and the reasons for granting it. The Governor may not grant a pardon or commutation to a person twice convicted of a felony except on recommen- dation of the Supreme CourL 4 judges concurring. (b} No decision of the l~arole authority of this state with respect to the granting, denial, revocation, or sus- pension of parole of a person sentenced to an indetermi- nate term ul~on conviction of murder shall become effective for a l~eriod of 30 days, during which the Governor may reviet~ the decision subject to procedures l~rovided by statute. The Governor may only affirm, modify, or reverse the decision of the parole authority on the basis of the same factors u~hich the parole authority is required to consider. The Governor shall report to the Legislature each parole decision affirmed, modified, or reversed, stating the l~ertinent facts and reasons for the action. G88 89 Governor's Parole Review Argument in Favor of Proposition 89 Proposition 89 provides that no decision of the parole board releasing a Convicted murderer shall become effec- tive until it is first reviewed by the Governor. Under Proposition 89, the Governor, for the first time, will have the power to block the parole of convicted murderers. Proposition 89 iS based on a simple premise--namely, that the public has a right to be protected against the early release of murderers from state prison by having as much scrutiny and as many levels of examination as possible before a convicted murderer is paroled. Surely, everyone would agree that any decision to parole a convicted killer should be carefully scrutinized. In 1983, Governor Deukmejian tried to block the parole of convicted rapist-murderer William Archie Fain. The court declared the Governor didn't have that authority and Fain was se~ free. Proposition 89 will correct the situation created by that court decision by expressly giving the Governor the power to block the early release of convicted murderers. Proposition 89 is needed because current law does not protect the public. Consider the following: · First-degree murderers who were paroled last year averaged less than 14 years in state prison. · Between 1973 and 1986, 365 murderers who had been paroled were~ sent back to prison because they vio- lated parole Or committed another felony. · In the next three years, over 500 convicted killers are due for parole hearings and possible release, includ- ing Hillside Strangler Kenneth Bianchi, mass mur- derer Juan COrona, Golden Dragon Massacre killer Peter Ng, Manson Family followers Tex Watson, Bobby BeausOliel, Leslie Van Houten and Patricia Krenwinkle, as well as Robert Kennedy assassin Sirhan Sirhan. We have already seen many tragic examples of the instances where a convicted killer has been paroled from prison only to commit further crimes. For example, Robert Nicolaus was sentenced to death in 1964 for killing his three children. After his death sentence was overturned in 1967, he was subsequently paroled in 1977. In 1985 he murdered his former wife. Robert L. Massie murdered a woman in a robbery in 1965 and was sentenced to death. His death sentence was overturned in 1972. He was paroled in 1978 and killed a store clerk in 1979. In Sacramento County alone since 1978, there have been eight cases where a previously convicted murderer was paroled from prison only to murder again! Murder is the most serious of crimes contemplated by our society. For this reason, the trial of a murder defen- dant is a difficult and closely monitored process. Even if the defendant is convicted, the Governor still has the power to grant reprieves, pardons and commutations. The procedural safeguards of the system are designed t6 protect defendants. The Governor can act on behalf of more lenient treatment of convicted criminals. We be- lieve the state's top elected official should also be given the power to protect the public from the early release of still dangerous killers. We urge a "Yes" vote on Proposition 89. I~ANIEL E. BOATWRIGHT State Senator, 7th District GARY A. CONDIT Member of the Assembly, 27th District IRA REINER Los Angeles County District Attorney Rebuttal to Argument in Proposition 89 will require the Governor to act within 30 days of the granting of a parole date or it will become final. He will not have any different information than his nine-member parole board would have had. It will simply allow him to grant or deny a parole date when it is politically expedient. Proposition 89 would have made no difference in the William Fain Case. The Governor tried to block Fain's parole years after his parole date was granted by the Board of Prison Terms. Under current ]aw, a person convicted of first degree murder must serve a minimum of 17 and three quarters years of actual time in prison before parole. The Board of Favor of Proposition 89 Prison Terms guidelines call for much longer time. The law does not require that any parole date be set for a murderer. Public safety is the primary consideration of the parole board. The person has to be found suitable for parole. The Board of Prison Terms commissioners are prosecutors, sheriffs, police officers, and probation offi- cers. They represent hundreds of years of experience in law enforcement. Their main job is to protect the public. If they give a parole date it is only when all doubt has been removed. Any question about the advisability of a parole date is cause for them to take it away. Proposition 89 will only politicize the parole process. REVEREND PAUL W. COMISKEY S.J. on behalf of the Prisoners Rights Union 46 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 688 Governor's Parole Review Argument Against Proposition 89 Proposition 89 in effect makes the Governor of the state another parole board with the same powers and the duty to apply the same rules. The only plausible reason for change is to give the Governor power to veto the parole board if the parole board makes a politically unpopular decision. Examples would be giving someone a parole date when large parts of the public did not approve or denying someone a parole date when it is politically unpopular to do so. The Board of Prison Terms is composed of a group of nine commissioners who are appointed by the Governor with the consent of the Senate. They apply a very technical set of rules when they make decisions about setting a parole date. They are trained and experienced and conduct hundreds of hear- ings each year for prisoners all over the state. They are former police officers, prosecuting attorneys, and proba- tion officers. They grant a parole release date in about 2 percent of the hearings they conduct. Persons convicted of murder are only eligible to be released on parole after serving 10 years in prison and typical release dates are given for 20 years or more. A prisoner given a release date today will have gone before the parole board a number of times. All relevant facts are considered in great detail from the day the person is born to the day of the hearing. This means considering the person's family background, education, crimes, psychological and physical health, job history, prison behavior, and plans for the future. Parole release dates are only set after a person is found suitable Rebuttal to Argument Protecting public safety is a legitimate responsibility of the Governor and other elected officials. Proposition 89 will not politicize the parole process, but it will provide an extra measure of safety to law-abiding citizens by giving the Governor the authority to block the parole of criminals who still pose a significant threat to society. Proposition 89 will help ensure that the rights of crime victims and their families are protected, and it represents a positive step in maintaining law and order in our state. The opponents of Proposition 89 contend that the law would encourage more public outcry, but the evidence suggests otherwise. Since 1984, the Board of Prison Terms has been able to consider public views in connection with 89 for parole. The actual release date is usually set for years away. If any information develops during those years that makes a parole date inadvisable, the parole board has full authority to take the date away. At the hearing to set a parole date the prisoner is present with his attorney, the district attorney from the county is ithere, and three parole board members conduct the hearing. If the three parole board members cannot agree on a decision they can refer the matter to the entire panel of nine members to make a decision. Most of the persons in prison now have not been found suitable for parole and it is likely that many never will be. The parole board is under no obligation to set a parole date if there is any risk to society. To require prisoners to go through the extremely rigid process they must go through to get a parole date and then leave the decision up to the whim of the Governor is to make a farce and mockery of justice and the rule of law. The parole board members are appointed by the Governor and paid a handsome :salary. If they are not competent to make a decision, how can we expect the Governor who appointed them to do any better? Proposition 89 will politicize decisions about whether to grant or deny parole. Unpopular persons will be denied parole dates because governors will sacrifice the interests of justice for votes. The criminal justice system will appear even more hypocritical than it is at present. REVEREND PAUL W. COMISKEY on behalf of the Prisoners Rights UniOn Against Proposition 89 their decisions to grant parole dates t0 prisoners. But in virtually every case there has been no ~ignificant degree of public outcry. In most instances, the families of the murder victims wish to put those tragic events behind them and have no desire to become involved in public campaigns associated with the murder ~of a loved one. Proposition 89 will correct a weakness in the state's parole system and further strengthen California's system of justice. VOTE YES ON PROPOSITION 89. GEORGE DEUKMEJIAN DANIEL BOATWRIGHT State Senator, 7th District (~88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any dfficial agency 47 C Assessed Valuation. Replacement Dwellings Official Title and Summary Prepared by the Attorney General ASSESSED VALUATION. REPLACEMENT DWELLINGS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently, homeowners over the age of 55 may, under certain conditions, transfer the current assessed value of their home to a replacement dwelling of equal or lesser value located in the same county. This authorizes the Legislature to permit the transfer of assessed valuation to replacement dwellings located in different counties if the county of the replacement dwelling adopts an ordinance participating in the program. Applies to replacement dwellings acquired on or after a county ordinance is adopted, but not before November 9, 1988. Contains provisions concerning the effective date of amendments. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, this measure would have no direct fiscal effect because it merely authorizes legislative action. If implemented, it Would reduce property tax collections in an amount which would depend on the extent of county participation, number of qualifying homeowners, and value of dwellings involved. The property tax revenue loss would not exceed $20 million in the first year if all counties participated and could be substantially less. The revenue loss would increas~ annually. Sixty percent of the loss would be borne by the cities, counties, and special districts. The remainder would affect school districts and community college districts. Under existing law, the State General Fund would offset the schools' losses beginning in 1989-90. Final Vote Cast by the Legislature on ACA I (Proposition 90) Assembly: Ayes 77 Senate: Ayes 36 Noes 1 Noes 0 Background Current law all~ws homeowners over the age of 55 to transfer the curre: at assessed value of their present home to a replacement home located in the same county. This program provides qualified homeowners with an exemp- tion from the increased property taxes they would other- wise pay. To qualify for tl~is special treatment: · The homeowner must buy or build a replacement home within two years of selling his or her previous home; i · The replacement home must be of equal or lesser value than the home being replaced; and · The homeowner must move within the same county. Proposal This constitutional amendment would authorize the Legislature to extend the existing special valuation pro- gram to homes located in different counties. If imple- mented by the Legislature, this proposal would allow a qualified homeov~ner (age 55 and over) to transfer the current assessed ~alue of the original home to a replace- ment residence in another county, but only if the county in which the replacement home is located has agreed to participate in th~ program. In order to participate, Analysis by the Legislative Analyst counties must adopt the special valuation program by ordinance. The program would apply only to replace- ment homes acquired on or after the date on which the county ordinance is adopted, but in no event earlier than November 9, 1988. Fiscal Effect This measure would have no direct state or local fiscal effect, because it merely authorizes the Legislature to adopt its provisions. If implemented by the Legislature, the measure would reduce property tax collections. The amount of this revenue loss would depend on the number of counties that choose to participate in the program, the number of qualifying homeowners, and the value of the original and replacement homes owned by these individuals. This property tax revenue loss would not exceed $20 million in the first year if all counties choose to partici- pate, and could be substantially less than that amount. The revenue loss from this program would increase annually. Cities, counties and special districts would bear approx~ imately 60 percent of the revenue loss. The remainder of the losses would affect school districts and community college districts. Under existing law, the State General Fund would offset the losses to the schools and colleges beginning in 1989-90. 48 G88 Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 1 (Statutes of 1988, Resolution Chapter 64) expressly amends the Constitution by amending sections thereof; therefore, existing provisions proposed to be deleted are printed in ~trikc, out type and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE XIII A, SECTION 2 First--That the second paragraph of subdivision (a) of Section 2 of Article XIII A thereof is amended to read: However, the Legislature may provide that under appropriate circumstances and pursuant to definitions and procedures established by the Legislature, any per- son over the age of 55 years who resides in property which is eligible for the homeowner's exemption under subdivision (k) of Section 3 of Article XIII and any implementing legislation may transfer the base year value of the property entitled to exemption, with the adjustments authorized by subdivision (b), to any re- placement dwelling of equal, or lesser value located within the same county and purchased or newly con- structed by that person as his or her principal residence within two years after of the sale of the original property. For purposes of this section, "any person over the age of 55 years" includes a married couple one member of which is over the' age of 55 years. For purposes of this section, "replacement dwelling" means a building, struc- ture, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. For purposes of this section, a two-dwelling unit shall be considered as two separate single-family dwellings. This paragraph shall nat apply to any replacement dwelling which was purchased or newly constrUcted pr~c,r t~ t~c cffcctivc n-'~ ~f ~-:~ paragraph on or after November 5, 1986. Second--That a third paragraph is added to subdivision (a) of Section 2 of Article XIII A thereof, to read: In addition, the Legislature may authorize each county board of supervisors, after consultation with the local affected agencies within the counttt's boundaries, to adop.t an ordinance making the provisions of this subdi- vision relating to transfer of base year value also appli- cable to situations in which the replacement dwellings are located in that county and the original properties are located in another county within this state. For purposes of this paragraph, "local affected ' ' agency means any city, special district, school district, or Community college district which receives an annual property tax revenue allocation. This paragraph shall apply to any replace- ment dwelling which was purchased or newly con- structed on or after the date the county adopted the provisions of this subdivision relating to transfer of base year value, but shall not apply to. any replacement dwelling which was purchased or ~ewly constructed before November 9, 1988. Third That subdivision (i) of SeCtion 2 of Article XIII A thereof is amended to read: (i) Unless specifically provided Otherwise, amend- ments to this section adopted prior toi November 1, 1988, shall be effective for c~angc ~f ownerships changes in ownership which occur, and new construction which is completed, after the effective date af the amendment. Unless specifically provided otherwise, amendments to this section adopted after NovembeP 1, 1988, shall be effective for changes in ownership which occur, and new construction which is completed, on or after the effective date of the amendment. G88 49 90 AsSessed Valuation. Replacement Dwellings Argument in Favor of Proposition 90 This is an important tax relief and housing measure for California senior citizens. Why should seniors who wish to take advantage of Proposition 60, which passed on the November 1986 ballot with 77 percent of the vote, be prevented from moving to another California county? If voters approve Proposition 90 they will ease this restric- tion by permitting counties, at their option, to accept Proposition 60 transfers from other counties. As you may recall, to qualify for Proposition 60, the property must be: · Purchased by either (a) a person over the age of 55 years or (b) a married couple if one spouse is over the age of 55 years. · Eligible for the homeowners' exemption. · Purchased within two years of the sale of the original property. With the passage of Proposition 60, California created new housing opportunities for senior citizens by easing a property tax burden that prevented many of them from finding affordable! housing. Older homeowners are pro- tected from huge property tax increases when they choose to sell their larger family homes and move into smaller replacement residences. At the same time, it helps many growing families find the larger homes they need. ~ As a result, more seniors are able to enjoy the rewards of years of hard work, and new buyers, many of whom are young families, ar~ able to enjoy the home that served the seniors so well for so many years. Unfortunately, because some local governments feared a loss in revenue ~hey were able to remove the provision in Proposition 60 which would have authorized seniors to transfer their lower property tax assessments across county lines, or, in other words, from one county to another. However, many seniors have since indicated interest in moving to other counties in California so that they can be close to their children, grandchildren or other friends and relatives. Accordingly, Proposition 90 does two things: · Allows senior citizens, 55 years of age and older, the opportunity to take their lower property tax assess- ments to replacement homes in other California counties if those counties have agreed to accept such transfers, and · Gives counties the option of accepting transfers by seniors from other counties. Further, Proposition 90 calls upon county boards of supervisors to consult with other affected local government agencies, such as cities, within the counties' boundaries before deciding to accept transfers. Such consultations would no doubt include a determi- nation if any tax revenues are likely to be lost. But they should also include an examination of the benefits that seniors can bring to their communities. For example, since seniors rarely have school-age children, their arrival does not contribute to further school overcrowding that many communities are now facing. By approving Proposition 90, we can help increase our senior citizens freedom to live where they choose and at the same time help more young families have the oppor- tunity to achieve the American dream of homeowner- ship. DAVE ELDER Member of the Assembly, 57th District CECIL GREEN State Senator, 33rd District JOSEPHINE D. BARBANO Chair, California State Legislative Committee American Association of Retired Persons Rebuttals to Argument The Legislature should offer voters a comprehensive amendment to Proposition 13. Here are some possibilities: (1) Reduce the assessed value of all property to the 1975 levels established for some owners under Proposition 13. Homes built since 1975, for example, would be taxed at a level reflective of the area's lower property values in 1975. (2) Periodically reassess all property but provide for an automatic reduction in the tax rate so that government does not get more money just because overall property values go up. For other ideasi I assign the remainder of the rebuttal to a group with Which I have no affiliation. GARY B. WESLEY Attorney at Law Proposition 13 gave longtime homeowners lower taxes than new homeowners with equal property. That's discri- mination-unfair and irrational. But when they move, they become new homeowners, in Favor of Proposition 90 with normal tax rates, based on current values. Imagine if income taxes used that principle. You'd pay based on your income when you started your present job. Every April 15th, you'd file your 1975 tax over again--unless you changed jobs (then you'd pay based on current income). That's how Proposition 13 handles property taxes! Proposition 60 expanded this, letting homeowners over 55 move within county without losing "seniority." Proposition 90 goes further, allowing moves to other counties. "Affordable housing??" No, a scam letting a fortunate few avoid normal taxes. THE WEALTHIEST BENEFIT MOST; THE POOR NOT AT ALL. Instead: base all taxes on realistic, current values. OVERALL TAXES COULD THEN BE LOWERED PROPORTIONALLY. If we lower taxes, shouldn't everyone benefit? Vote NO. PEBBLES TRIPPET San Francisco Grassroots 50 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Assessed Valuation. Replacement Dwellings Argument Against Proposition O0 This measure is another proposal by the Legislature to amend Proposition 13, a constitutional limitation on prop- erty taxes approved by voters in 1978. Under Proposition 13 (now Article XIII A of the Cali- fornia Constitution), assessed property values generally are frozen at their 1975 levels; however, property is reassessed and higher, property taxes are imposed each time the property is purchased, newly constructed, or a change in ownership has occurred after the 1975 assess- ment." As a result of this reassessment each time property changes hands, new owners are required to pay far more in property taxes than do their neighbors whose property has the same value but was purchased earlier when property values were lower. In addition, this automatic reassessment provision has caused a gradual but massive shift of the overall property tax burden from owners of commercial and industrial property (which is often leased but seldom sold) to owners (and renters) of residential property. Instead of offering voters an amendment to Proposition 13 which would correct these inequities, the Legislature proposes in this measure to retain the basic flaw but permit counties to exempt a relatively small number of persons from the unfair tax burden the automatic reas- sessment provision places upon new owners and renters of residential property. Specifically, this measure would permit counties to allow persons over the age of 55 to bring their old 90 assessments with them when they have purchased a dwelling in one county (on or after November 5, 1986) within 2 years of having sold a dwelling in another county of equal or greater value. A 1986 amer~dment to Proposi- tion 13 only allowed such persons ~ retain their old assessments if the replacement dwellir~gs purchased were in the same county. Surely, it is unfair to impose higher .tgxes on persons (of any age) when all they are doing iS moving to more suitable quarters. At least persons who sell one home and buy another of equal or lesser value have the monqy to buy the new home. Consider the plight of first-time homebuyers. They must pay the sky-high current price for a home in California by mortgaging their futures and committing most of their monthly income to pay the mortgage. It is the height of unfairness that these persons should suffer the additional penalty of paying sky-high property taxes based on a brand-new assessment of the property. A "no" vote on Proposition 90 may send a message to the Legislature (and Governor) that voters want to be offered a comprehensive amendment to Proposition 13 which would eliminate the unfairnessi to all new owners and renters created by the automatie reassessment pro- vision. Let's stop tinkering with Propositioni 13 and get on with correcting the basic flaw. GARY B. WESLEY Attorney at Law Rebuttal to Argument Against Proposition 90 The opponent of Proposition 90 is right on one count. Proposition 90 will not make major .changes in the voter-approved measure known as Proposition 13. Prop- osition 90, like Propositions 13 and 60, helps ease the property tax burden for senior citizens by permitting them to transfer their lower property tax assessments to other counties. Republicans and Democrats agree that Proposition 90 encourages the transfer of underused, larger homes to younger, growing families. · Not one taxpayer association has opposed Proposition 90 because it, like Proposition 60, will help senior citizens to improve their housing without being penalized by excessive taxation and allow them to take their lower property tax assessments to other counties if those counties agree to accept transfers. · Proposition 90 will allow older Californians the free- dom to sell their homes in one county and move to another county, without paying excessive property taxes so they might live near family members or friends. · Republican and Democratic legis.ative leaders back Proposition 90 because it helps correct unfairness in our current property tax laws while maintaining the tax relief provided by Proposition 13. By voting for Proposition 90 we cam help give senior citizens freedom to live where they choose. Please remember that Proposition i90 stands for fair- ness. Proposition 90 helps our senior~ and at the same time it helps young families by increasing the supply of larger homes available for purchase; We urge you to support Proposition 90. On November~8 vote "yes" on 90. HENRY J. MELLO State Senator, 17th District Chairman, Senate Subcommittee on Aging WILLIAM CAMPBELL State Senator, Mst District Chairman, Joint Legislative Budget Committee PHILLIP ISENBERG Member of the Assembly, lOth District G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 51 C.am JUstice Courts. Eligibility Official Title and Summary Prepared by the Attorney General JUSTICE COURTS. ELIGIBILITY. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Amends the State Con- stitution to provide that justice courts are courts of record and that a person is ineligible to be a justice court judge unless the person has been a member of the State Bar or served as a judge of a court of record in California for five years immediately 9receding selection. Makes changes operative on January 1, 1990. Exempts justice court judges who held office on January 1, 1988, from the 5-year membership or service requirement. Makes exemption operative only until January 1, 1995. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, this measure would have no fiscal effect, but would depend on actions taken by the Legislature to implement it. The counties affected by the measure would have costs or savings to the extent that legislative changes in the salaries and/or retirement benefits of justice court judges would differ from those the counties would otherwise have made. Final Vote Cast by the Legislature on ACA 12 (Proposition 91) Assembly: Ayes 73 Senate: 'Ayes 30 Noes 0 Noes 0 Analysis by the Legislative Analyst Background The California state court system consists of courts on five levels: the SUpreme Court, the courts of appeal, superior courts, municipal,courts, and justice courts. All except justice cou~ts are courts of record." The judg- ments of courts of record are enforceable in other states. The Legislature sets the salary and retirement benefits of these judges. There are 76 justice courts in 33 counties in California. Justice courts are established in districts with populations of less than 40,000 and share jurisdiction with municipal courts. Under eur~rent law, the board of supervisors in each county deter'mines the operations of the justice courts, including !the composition of the court staff. Counties also detepmine and pay the salaries and retire- ment benefits of jt~stiee court judges. In order to become a justice court judge, a person must be an attorney and a member of the State Bar of California. Most justice court judges serve on a part-time basis. Proposal This constitutional amendment designates justice courts as courts of record. As a result, the Legislature would set the salaries and retirement benefits of these judges. Responsibility for the payment of these costs would remain with the counties. The measure also re- quires that justice court judges be attorneys and members of the State Bar for at least five years before they become judges. The measure would take effect January 1, 1990. The requirement that these judges be attorneys and members of the State Bar for five years would not apply to those who held office on January 1, 1988. Fiscal Effect By itself, this measure would have no direct fiscal effect, but would depend on actions taken by the Legis- lature to implement it. The counties affected by the measure would have costs or savings to the extent that legislative changes in the salaries and/or retirement benefits of justice court judges would differ from those the counties would otherwise have made. 52 G88 Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 12 (Statutes of 1988, Resolution Chapter 65) expressly amends the Constitution by amending sections thereof; therefore, existing provisions proposed to be deleted are printed in ~trikeout ty~c and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENTS TO ARTICLE VI, SECTIONS 1, 15 AND 15.5 First--That Section 1 of Article VI thereof is amended to read: SEC. 1. The judicial power of this State is vested in the Supreme Court, courts of appeal, superior courts, municipal courts, and justice courts. All cxcc~t ju~,~co courts are courts of record. Second--That Section 15 of Article VI thereof is amended to read: SEC. 15. A person is ineligible to be a judge of a court of record unless for 5 years immediately preceding selection to a municipal or justice court or 10 years immediately preceding selection to other courts, the person has been a member of the State Bar or served as a judge of a court of record in this State. A judge eligible for municipal court service may be assigned by the Chief Justice to serve on any court. Third--That Section 15.5 is added to Article VI thereof, to read: SEC. 15.5. The 5-year membership or service require- ment of Section 15 does not apply to justice court judges who held office on January 1, 1988. This section shall be operative only until January 1, 1995, and as of that date is repealed. Fourth--That the changes made by this measure shall be operative on January 1, 1990. G88 53 91 Justice Courts. Eligibility Argument in Favor of Proposition 91 Proposition 91 would amend the State Constitution to: (1) declare justice courts to be courts of record, (2) require justice court judges to have the same minimum experience as muRicipal court judges, and (3) prohibit justice court judges from practicing law. California's judicial power is vested in the Supreme Court, courts of al~,peal, superior, municipal and justice courts. With the ex.-eption of justice courts, all courts are courts of record. TI tis designation means that orders and judgments of thos[ courts are fully respected and en- forced outside the state and within the federal court system. Not so for ustice courts. Many small, less populated counties are served by justice courts rather than by municipal courts. The types of cases heard by and the jurisdiction of justice courts are the same as municipal courts. But the absence of a designation as a court of record prevents justice courts from dealing with several types of matters such as federal search and arrest ~varrants and, extraditions from other states. Yet, thes~ matters all may be dealt with in munic- ipal courts. In counties with a justice court but no municipal court, the lack of a designation as a court of record has a serious impact on the disposition of some cases. Residents in these counties suffer legal shortcomings not faced by residents in larger counties. Proposition 91 eliminates these inequities by affording all California residents equal treatment within our court system. To assure a basic level of judicial competency and commitment, Proposition 91 also requires justice court judges to have the same minimum experience and qual- ifications as municipal court judges. Existing law prohibits judges of courts of record from practicing law. Proposi- tion 91 would include justice court judges in that prohi- bition. Approval of Proposition 91 would provide all California residents with the same level of judicial and law enforce- ment services from our court system. We respectfully ask you to vote yes on Proposition 91. LARRY STIRLING Member of the Assembler, 77th District V. GENE McDONALD Presideng California Judges Association P. TERRY ANDERLINI President, State Bar of California Rebuttal to Argument in If Proposition 91 only made justice courts "courts of record," it would be acceptable. Justice court judges should not be allowed to practice law on the side. I~ is not clear, however, that this is a problem anywhere in the state. The heart of Proposition 91, therefore, appears to be the requirement that justice court judges have at least 5 years of experience in the legal profession. This requirement unduly restricts the Governor and local voters (whenl there is a contest for a judgeship) in selecting persons to serve as justice court judges on the basis of such factors as integrity, temperament, work habits, fairness, judicial philosophy as well as knowledge Favor of Proposition 91 of the law and a willingness to learn. I write ballot arguments to make sure voters receive arguments on both sides. This November 8, California voters face a long list of ballot measures and will be choosing candidates for high public office. It is not easy to decide all of these matters. But the right to decide is largely what separates our great nation from the dictatorships and totalitarian governments around the world. Let's not let others decide for us. On November 8, please be sure to VOTE. GARY B. WESLEY ~ Attorney at Law 54 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 688 Justice Courts. Eligibility Argument Against Proposition 91 Proposition 91 is a proposal by the Legislature to amend our State Constitution to require that judges of "justice courts" have at least 5 years of experience as attorneys before becoming judges. As a general rule, 5 years of experience is not enough. Judges of justice courts perform vital functions, including hearing evidence at the initial stage of a complex, death- penalty murder case. Such judges should ordinarily have far more than 5 years of experience in the practice of law. On the other hand, our Constitution provides that judges of the municipal court need only 5 years of experience and judges of higher courts, including the California Supreme Court, need only 10 years of experi- ence. Both former Governor Jerry Brown and current Gov- ernor George Deukmejian appointed many attorneys to the bench who had barely more than the minimum period of experience required under our Constitution. Surely, a high percentage of these appointees have proven to be capable judges. The point is that, while experience is important, there is no minimum period of experience that gives voters any significant assurance that an attorney will make a good judge. The current requirement that judges of courts (other 91 than justice court) have a minimum p~riod of experience brings to mind provisions of the United States Constitu- tion written two centuries ago which require that the President be a "natural-born citizen" a~nd at least 35 years of age before taking office (United States Constitution, Article II, Section 1, subsection 5). Ted Koppel of ABC's "Nightline" was not born in this country; perennial presidential candidate Lyndon LaRou- che evidently was born in the United States. Does that mean that Mr. LaRouche would nec6ssarily be a better President than Ted Koppel? I hope the question answers itself. With regard to judgeships, the Governor and voters should be free to make their own assessment of each candidate's qualifications without well-intentioned but misguided restrictions. Our State Constitution should not require a minimum period of experience for any judicial office. A "no" vote on Proposition 91 at least ensures ithat the error of requiring a minimum period of experience is not ex- tended to candidates for the low~st of California's courts--the justice court. GARY B. WESLEY Attorney at Law Rebuttal to Argument The argument against Proposition 91 misses the point. The main purpose of this proposition is to establish justice courts as courts of record. The argument against its passage fails to address this basic fact. Without the approval of Proposition 91, justice courts will continue to be treated differently from all other California courts. Today, orders and judgments from our justice courts are not always fully respected and enforced outside the state and within the federal court system. Proposition 91 solves that problem by declaring all justice courts to be courts of record. The argument against Proposition 91 fails to mention another important fact. Today, justice court judges are allowed to practice law on a limited basis. Proposition 91 would remedy that situation by including those judges under provisions which prohibit judges of courts of record from practicing law. The argument against Proposition 91 expresses opposi- Against Proposition 91 tion to the requirement that justice court judges have the same minimum experience as municipal court judges. The opponent argues that "our State Constitution should not require a minimum period of experience for any judicial office." We disagree. Californians deserve a basic level of competency and commitment from their judges, and Proposition 91 extends that reqUirement to justice court judges as well. Please improve our judicial system. Require a mini- mum level of qualifications and experience before anyone may become a judge and prohibit jt~stice court judges from practicing law. Vote "yes" on Proposition 91. LARRY STIRLING Member of the Assembly, 77th District V. GENE MCDONALD President, California Judges Associdtion P. TERRY ANDERLINI Presideng State Bar of California G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 55 Commission on Judicial Performance Official Title and Summary Prepared by the Attorney General COMMISSION ON JUDICIAL PERFORMANCE. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Specifies the powers which the Commission on Judicial Performance may exercise if, after conducting a preliminary investigation, it d6termines that formal disciplinary proceedings should be instituted against a judge. Such powers would permit public hearings on charges of moral turpitude, dishonesty, or corruption, and require public hearing at request of judge ~harged absent good cause for confidentiality. Shortens the term of specified members of the commission from ~_ to 2 years in order to provide for staggered terms. Prohibits members from serving more than two 4-year terms. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: This measure would have a minor impact on state costs. Final Vote Cast by the Legislature on SCA 6 (Proposition 92) Assembly: Ayes 72 Senate: Ayes 36 Noes 0 Noes 0 Analysis by the Legislative Analyst Background Under the CalifOrnia Constitution, the Commission on Judicial Performapce ~nvest~gates complaints regarding the conduct of judges. The Commission on Judicial Performance consists of nine members. These members include five judges, who are appointed by ,the Supreme Court; two members of the State Bar of California, who are appointed by the State Bar's Board of Governors; and two representatives of the Public, who are appointed by the Governor and approved by the Senate. The members serve four-year terms. There is no! express requirement that the terms be staggered. MoreoVer, there are no provisions specifying whether members may be reappointed. The commis- sion's recommendations for discipline of judges are sub- ject to review and approval by the California Supreme Court. The commission receives, on average, about 400 com- plaints against ju~tges each year and determines that about five cases Warrant hearings. The complaints are handled on a confidential basis, but become public when they are filed with the Supreme Court. For less serious cases of misconduct, the commission may privately rep- rimand a judge. The Supreme Court may, but is not required to, review these actions. For cases involving serious misconduct, the commission may recommend to the Supreme Court that judges be suspended, censured, retired, or removed. Proposal This constitutional amendment shortens the terms of specified members of the commission on Judicial Perfor- mance to two years in order to provide for staggered terms. The measure also prohibits members from serving more than two four-year terms, but authorizes a member whose term has expired to continue serving until a successor is appointed. In addition, this measure specifies that if the commission determines that formal proceed- ings should be instituted, the judge or judges charged may require the hearings to be public, unless the com- mission finds good cause for making them confidential. The measure also allows the commission, without further review by the Supreme Court, to issue a public repri- mand, with the consent of the judge, for conduct war- ranting discipline. It further allows the commission to issue press statements or releases, and explanatory state- ments, as specified, or, in some instances, to open hear- ings to the public. Fiscal Effect This measure would have a minor impact on state costs. 56 G88 Text of Proposed Law This amendment proposed by Senate Constitutional Amendment 6 (Statutes of 1988, Resolution Ghapter 67) expressly amends the Constitution by amending sections thereof; therefore, existing provisions proposed to be deleted are printed in ~trikcout .'TFc. and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENTS TO ARTIGLE VI, SEGTIONS 8 AND 18 First--That Section 8 of Article VI thereof is amended to read: SEC. 8. (a) The Gommission on Judicial Perfor- mance consists of 2 judges of courts of appeal, 2 judges of superior courts, and one judge of a municipal court, each appointed by the Supreme Court; 2 members of the State Bar of California who have practiced law in this State for 10 years, appointed by its governing body; and 2 citizens who are not judges, retired judges, or members of the State Bar of California, appointed by the Governor and approved by the Senate, a majority of the membership concurring. ~ Except as provided in subdivision (b), all terms are 4 years. No member shall serve more than 2 4-year terms. Gommission membership terminates if a member ceases to hold the position that qualified the member for appointment. A vacancy shall be filled by the appointing power for the remainder of the term. A member whose term has expired may continue to serve until the vacancy has been filled by the appointing power. (b) To create staggered terms among the members of the Commission on Judicial Performance, the following members shall be appointed, as follows: (1) The court of appeal member appointed to immedi- ately succeed the term that expires on November 8, 1988, shall serve a 2-year term. (2) Of the State Bar members appointed to immedi- ately succeed terms that expire on December 31, 1988, one member shall serve for a 2-year term. SecondtThat Section 18 of Article VI thereof is amended to read: SEC. 18. (a) A judge is disqualified from acting as a judge, without loss of salary, while there is pending (1) an indictment or an information charging the judge in the United States with a crime punishable as a felony under California or federal law, or (2) a recommendation to the Supreme Court by the Commission on Judicial Perfor- mance for removal or retirement of the judge. (b) On recommendation of the Commission on Judi- cial Performance or on its own motion, the Supreme Court may suspend a judge from office without salary when in the United States the judge pleads guilty or no contest or is found guilty of a crime punishable as a felony under California or federal law or of any other crime that involves moral turpitude under that law. If the conviction is reversed suspension terminates, and the judge shall be paid the salary for the judicial office h~ld by the judge for the period of suspension. If the judge is suspended and the conviction becomes final the Supreme Court shall remove the judge from office. (c) On recommendation of the Commission on Judi- cial Performance the Supreme Court may (1) retire a judge for disability that seriously interferes with the performance of the judge's duties and is or is likely to become permanent, and (2) censure 0r remove a judge for action occurring not more than 6 years prior to the current term that consti- commencement of the judge's ~ tutes wilful misconduct in office, persistent failure or inability to perform the judge's duties, habitual intemper- ance in the use of intoxicants or drugs, or conduct prejudicial to the administration of justice that brings the judicial office into disrepute. The commission Commis- sion on Judicial Performance may privately admonish a judge found to have engaged in an improper action or a dereliction of duty, subject to revieW in the Supreme Court in the manner provided for' review of causes decided by a court of appeal. (d) A judge retired by the Supre~ne Court shall be considered to have retired voluntarily. A judge removed by the Supreme Court is ineligible fo/judicial office and pending further Order of the court is suspended from practicing law in this State. ~ (e) A recommendation of the Con}mission on Judicial Performance for the censure, removm or retirement of a judge of the Supreme Court shall be determined by a tribunal of 7 court of appeal judges s~lected by lot. (f) If, after conducting a preliminary investigation, the Commission on Judicial Performance by vote deter- mines that formal proceedings should be instituted: (1) The judge or judges charged may require that formal hearings be public, unless the Commission on Judicial Performance by vote finds g~od cause for confi- dential hearings. (2) The Commission on judicial !Performance may, without further review in the Supreme Court, issue a public reproval with the consent of the judge for conduct warranting discipline. The public reproval shall include an enumeration of any and all formal charges brought against the judge which have not been dismissed by the commission. (3) The Commission on Judicial l~rformance may in the pursuit of public confidence ai~d the interests of justice, issue press statements or reletlses or, in the event charges involve moral turpitude, dis~honesty, or corrup- tion, open hearings to the public. (g) The Commission on Judicial Performance may issue explanatory statements at any investigatory stage when the subject matter is generally known to the public. (h) The Judicial Council shall make rules implement- ing this section and providing for confidentiality of proceedings. G88 57 92 Commission on Judicial Performance Argument in Favor of Proposition For our system ,of justice to work, it is absolutely necessary that we have complete faith in our judges. For the most pa/t, California has been blessed with a judiciary of integrity. While some citizens will always object to the policies of particular judges, few would question their honesty and basic decency. When judicial abuses do occur, !however, they must be addressed promptly, decisively and with sufficient openness to assure continued p¢blic confidence. Our State ConstRution provides for a Commission on Judicial PerformanCe which investigates charges against judges and make, recommendations to the Supreme Court, including c~nsure or removal from the bench when appropriate.. The Supreme COurt has the final word, but the com- mission does the real work. Trouble is, the nine-member commission, including five judges and two attorneys, does its work in completO secrecy. The press and the public are barred from proceedings and any knowledge of the charges or facts in the case. Between 1960 and 1987, only 25 of the 7,185 complaints lodged with the commission resulted in public punish- ment. Even if a judge has already been publicly tried and convicted of a misdemeanor, the disciplinary proceedings of the commission based on the same misconduct are closed to the public. Judges should nor be subject to public suspicion based on a mere complaint but once formal charges are filed, perhaps the public should know. That is what happens in 24 other states. That is how cases are handled involving doctors, lawyers, and other professionals. Proposition 92 proposes to open disciplinary proceed- ings against judges in a limited but reasonable way. It Rebuttal to Argument in I agree with the! proponents that we need complete faith in our judges !and therein lies our difference. The proponents do not go far enough in their proposal in changing the commission on judicial performance. If you're going to amend the Constitution then do it right the first time. Too many ignorant and incompetent lawyers are ap- pointed as judges who too often become arrogant in their security of immuniry. The record of the commission on judicial performance, given by the proponents, i.e., only 25 out of 7,185 complaints resulted in public punishment in 27 years speaks for itselfmwimpy--merely a wrist- slapping public entity that is neither useful nor cost does not require public proceedings following formal charges as in other states. It simply allows an accused judge or the commission to open proceedings subsequent to formal charges in appropriate cases. Due to the high quality of our judiciary, this change poses no threat of endless public spectacle. After all, in 1987 only five judges in California faced any formal charges at all. Proposition 92 also includes provisions which allow the accused judge and the commission to agree to a public reprimand as well as provisions which stagger the terms of commission members. This proposition was drafted in part by the Commission on Judicial Performance itself, with the help of the Judicial Council and the California Judges Association. All agree that the primary job of the commission is to protect the public from judicial misconduct. All believe this amendment represents a sensible accommodation of the public interest. We're proud of our judges and the fine work they do. But every public official, no matter how high the office, must ultimately be accountable to the public. When the integrity of our courts comes under question, we can ill afford to be bound by a rule which concludes in every case that the public and press are better off in the dark. Such absolute secrecy is the antithesis of democracy. Provide a little sunlight in this critical area of govern- ment. Vote yes on Proposition 92. ED DAVIS State Senator, 19th District BILL LOCKYER State Senator, lOth District TOM McCLINTOCK Member of the Assembly, 36th District Favor of Proposition 92 effective in its present state. Their poor record is under- standablempresently there are 5 judges, 2 lawyers, and 2 laypeople on the commission who recommend to the Supreme Court (more lawyer-justices) to censure or remove a brother. Change it to 5 laypeople (women and minorities should be represented), 2 judges, and 2 lawyers and give them some teeth by letting them have the sole power to censure or remove rogue judges. Only then would the public's confidence be restored in their judicial system. VOTE NO on Prop 92. The legislators need to place another measure on the ballot with the above recommen- dations. STEVE D. WILSON, Ph.D. 58 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Commission on Judicial Performance 92 Argument Against Proposition 92 The Commission on Judicial Performance consists of 5 judges, 2 lawyers and 2 nonlawyers serving terms of 4 years. The function of the commission is to investigate alleged judicial misconduct and take appropriate action. The Commission on Judicial Performance may clear a judge of any wrongdoing or admonish a judge if miscon- duct is found. The commission may also recommend that the California Supreme Court censure or remove a judge from office. When one considers how judges gain office, it becomes quite evident why California needs an active, indepen- dent Commission on Judicial Performance. Judges of the trial courts in California's 58 counties (called justice courts, municipal courts and superior courts) are supposed to be elected; however, the State Constitution provides thfit vacancies may be filled by appointment of the Governor. When a new judgeship is created or when a local judge retires, a vacancy exists and the Governor makes an appointment. Once appointed, the new judge will never be on the ballot unless a local lawyer has the unmitigated gall to run against the appoin- tee and give local voters a choice in the matter. Judges of the higher, appellate courts (the court of appeal and the California Supreme Court) are appointed by the Governor, confirmed by a Commission on Judicial Appointments and serve the unexpired portion of the 12-year terms held by their predecessors. At the next gubernatorial election, appellate court judges (actually called "justices") appear on the ballot for approval or rejection by voters. If appellate court justices are rejected by voters, the Governor has the opportunity to appoint replacements. I A lot of money is at stake in California's court system. Multimillion-dollar lawsuits are pending. The potential for corruption certainly is present. I Perhaps more important, howeve~r, is the need to control the arrogance of too many judges. We need a mechanism for instilling and ensuring humility and re- spect for the law in those lawyers who manage to gain appointment to judicial office. Given that local attorneys are afraid to run against appointed trial court judges and that voters seldom receive much information when it comes time to approve or reject appellate court justices, tile Commission on Judicial Performance is left to hold judges accountable and ensure that ours is a system of laws and not men. That brings us to Proposition 92. This measure would stagger the terms of the 9 members of the commission and establish a two-term limit. A two-term limit is desirable for many government positions, although, in this case, a one-term limit would be better. Staggering terms is NOT desirable because periodically replacing the entire commission could allow new mem- bers to replace the entire staff and completely revise the operation, if necessary. Voters should reject Proposition 92 and the Legislature should place on the ballot another measure that would establish a one-term limit and provide for more than 2 nonattornetls on the commission. STEVE D. WILSON, Ph.D. Rebuttal to Argument Against Proposition 92 Since its creation in 1960, the Commission on Judicial Performance has responded to complaints involving the conduct of judges. While the judges of California are not perfect, they have forged a tradition of excellence of which we can be proud. Proposition 92 seeks to ensure California's position as a national leader in the law. Occasional breaches of judicial conduct are inevitable but no major or systematic problem exists in California. Accordingly, Proposition 92 has been drafted with the objective of assuring continued public confidence in a fine system through increased openness. After 28 years it is appropriate that some adjustments be made to the operation of the Commission on Judicial Performance. The argument against Proposition 92 indicates that the opponent shares some of the same objectives as those who support Proposition 92. While it is difficult to determine the most appropriate degree of scrutiny, it is clear that both opponent and proponents desire greater public accountability. The differences in perspective appear minor. Proposition 92, which is the product of numerous open hearings in the Legislature, was drafted with the expert assistance of the Commission on Judicial Performance and is designed for the sole purpose of making the Commission more responsive to the needs of the public. Proposition 92 is not intended to allay the concerns of every disgruntled litigant, or resolve .every potential problem with the judiciary, but is a sound move in the right direction. Vote yes on Proposition 92. ED DAVIS State Senator, loth District BILL LOCKYER State Senator, 10th District TOM MCCLINTOCK Member of the Assembly, 36th District G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 59 Veterans' Property Tax Exemption Official Title and Summary Prepared by the Attorney General VETERANS' PROPERTY TAX EXEMPTION. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Under existing law, the State Constitution exempts up to $1,000 of the assessed value of real property from the property tax if the owner is an honorably discharged member of the armed forces, or the parent or unmarried spouse of a deceased veteran. This measure deletes the additional requirement that the veteran must have been a California resident upon entry into the armed forces or on November 3, 1964. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Beginning in 1989-90, this amendment would reduce property tax collections. The revenue loss probably woul~l be less than $50,000 per year. Cities, counties and special districts Would bear approximately 60 percent of the losS~ The remainder would affect school districts and community college districts. Existing law would require the State General Fund to offset the losses to the schools and the colleges, beginning in 1989-90. Final Vote Cast by the Legislature on SCA 16 (Proposition 93) Assembly: Ayes 74 Senate: Ayes 32 Noes 0 Noes 1 Analysis by the Legislative Analyst Background California veterans are entitled to claim a $1,000 prop- erty tax exemption. To qualify, the person: (1) Must be an active or honorably discharged mem- ber of the armed forces. (2) Must have either entered the service from Califor- nia, or been a resident in this state on a specific date. Parents or an unmarried spouse of an eligible deceased veteran also can qualify for this exemption. Proposal This constitutional amendment deletes the residency requirements for the veterans' property tax exemption. Thus, a veteran or the parent or unmarried spouse of a deceased veteran who claims the exemption would not need to meet the residency requirements in order to qualify for the exemption. Fiscal Effect This amendment would reduce property tax collections beginning in 1989-90. Relatively few persons claim this exemption because a homeowner is not allowed to claim both this exemption and the homeowners' exemption on the same property. As a result, this exemption is primarily claimed on boats, airplanes and second homes. Conse- quently, the resulting property tax revenue loss probably would be less than $50,000 per year. Cities, counties and special districts would bear approx- imately 60 percent of the revenue loss. The remainder of the loss would affect local school and community college districts. Under existing law, the State General Fund would offset the losses to the schools and the community colleges, beginning in 1989-90. Veterans' Property Tax ExemptiOn Argument in Favor of Proposition 93 Proposition 93 would bring the California Constitution, as it relates to veterans' property tax exemptions, in line with two recent United States Supreme Court rulings. The decisions in Hooper v. Bernalillo Counter Assessor (1985) and Attorney General of New York v. Eduardo Sota-Lopez (1986) struck down as unconstitutional similar residence requirements imposed by other states as a condition for state-offered benefits. Based on the decisions in these two cases, it is clear that the residence requirement in the California Constitution for veterans' property tax exemptions is unconstitutional. However, until either an appellate court strikes down the California requirements or the Constitution is amended, California assessors must continue to enforce the resi- dence requirements in granting property tax exemptions to veterans. In order to eliminate residence requirement and to bring the Galifornia Gonstitution into conformity with the Supreme Gourt rulings, I urge a "yes" vote on Proposition 93. WADIE P. DEDDEH State Senator, 40th District ERNEST J. DRONENBURG, JR. Chairman, State Board of Equalization ANDREW STEFFANIC California State Commander, American Legion 93 No argument against Proposition 93 was filed Text of proposed law appears on page 123 G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 61 cZ_ JUdges Official Title and Summary Prepared by the Attorney General JUDGES. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Permits judges of courts of record to accept part-time teaching positions that are outside the normal hours of their judicial position and do not interfere with the regular performance of their judicial duties. Prohibits judicial officer from earning retirement service credit from a public teaching position while holding judicial office. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Will have little, if any, fiscal impact on the state and local governments. Final Vote Cast by the Legislature on ACA 17 (Proposition 94) Assembly: Ayes 63 Senate: Ayes 37 Noes 2 Noes 0 Analysis by the Legislative Analyst Background The California Constitution prohibits judges of the Supreme Court, the courts of appeal, superior courts, and municipal courts from accepting other public office or employment, including teaching at public institutions, during their judicial terms. These judges may, however, teach at private institutions. The California Code of Judicial Conduct sets standards regarding the compensa- tion judges may receive from participating in outside activities. Under existing law, the state provides retirement ben- efits for these judges based on their age and the length of their judicial service. Proposal This constitutional amendment permits judges of the Supreme Court, the courts of appeal, superior courts, and municipal courts to teach part time at public institutions, provided that the activity is outside the normal hours of their judicial positions and does not interfere with the performance of their duties. The measure prohibits judi- cial officers from gaining additional retirement credit from a public teaching position. Fiscal Effect This measure would have little, if any, fiscal impact on the state and local governments. 62 G88 Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 17 (Statutes of 1988, Resolution Chapter 70) expressly amends the Constitution by amending a section thereof; therefore, existing provisions proposed to be deleted are printed in ~trikc-out typc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE VI, SECTION 17 SEC. 17. A judge of a court of record may not prac- tice law and during the term for which the judge was selected is ineligible for public employment or public office other than judicial employment or judicial office, except a judge of a court of record may accept a part-time teaching position that is outside the normal hours of his or her judicial position and that does not interfere with the regular performance of his or her judicial duties while holding office. A judge of tlc. aupcrior o~ municipal cc, urt a trial court of record may, however, become eligible for election to other public office by taking a leave of absence without pay prior to filing a declaration of candidacy. Acceptance of the public office is a resig- nation from the office of judge. A judicial officer may not receive fines or fees for personal use. A judicial officer may not earn retirement service credit from a public teaching position while homing judicial office. G88 94 Judges' Argument in Favor The primary purpose of Proposition 94 is to amend the State Constitution to allow a judge of a court of record to accept a part-time teaching position which does not interfere with his or her judicial duties. This measure also makes two technical changes which would: (1) prohibit any judge from earning retirement service credit from a public teaching position while holding judicial office, and (2) clarify the law requiring all judges of trial courts of record to take a leave of absence without pay in order to run for election to' other public office. The Constitution prohibits judges of courts of record from accepting public employment or public office out- side their judicial position during their term of office. This prohibition has been interpreted to mean that a judge cannot accept a teaching position at a public school, but may accept one at a private school. The prohibition applies during the time the judge is actually in office and during the entire term for which the judge was selected, even if the judge has resigned part way through the term. The practical effect of this provision has been to allow students at private universities and colleges to benefit from the knowledge and experience of judges, but to deny to the students at public educational institutions the contact and exposure to this valuable source of knowl- edge and expertise~Private institutions have been attract- of Proposition 94 ing judges as lecturers and professors for many years and the experience has been overwhelmingly positive for these schools and their students. In order to remedy this inequity, Proposition 94 would allow judges to accept part-time teaching positions at public institutions provided that the work does not interfere with the regular duties of the judge's position, and the work is undertaken outside the normal hours for that position. Judges are regulated by the Canons of Judicial Conduct which require that the judge place primary emphasis upon his or her judicial position. A failure to adequately and competently discharge judicial duties can lead to removal from office. Californians thus can be assured that utilizing judges as teachers in public schools will be beneficial to the public and pose minimal potential for abuse. We respectfully ask you to vote yes on Proposition 94. PETER R. CHACON Member of the Assembly, 79th District V. GENE McDONALD Judge Presideng California Judges Association P. TERRY ANDERLINI Presideng State Bar of California Rebuttal to Argument in The provision in Proposition 94 which permits judges to teach part time for pay at public institutions only as long as the job "does not interfere with the regular perfor- mance of his or her judicial duties . . ." is practically unenforceable. Under existing law, a judge who allows any activities to prevent him or her from performing the duties of the judicial office could be removed by the California Su- preme Court on recommendation of a Commission on Judicial Performance. This almost never happens. Technically, judges of trial courts in California are elected by local voters. In reality, though, a trial court judge is ordinarily appointed by the Governor and stands election only if a local attorney runs against the Gover- nor's choice. Favor of Proposition 94 Under Proposition 94, it might be possible to sue a judge whose part-time teaching position at a public institution is interfering with his or her full-time position on the bench. But what attorney would take the case? What questioning of the judge would be allowed in the lawsuit? What other judge would want to decide the case? Given the staggering backlog of criminal and civil cases pending in California's courts, we should not authorize judges to take part-time jobs in public schools or colleges. On November 8, please exercise your best judgment concerning the measures and candidates on the ballot. VOTE and encourage everyone you know to vote (pref- erably your way!). GARY B. WESLEY Attorney at Law 64 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Judges Argument Against Proposition 94 Proposition 94 is a proposal by the Legislature to amend our State Constitution to permit a judge to teach part time for pay at public institutions as long as the job "is outside the normal hours of his or her judicial position and.., does not interfere with the regular performance of his or her judicial duties..." The proposed amendment reflects a concern that judges not permit part-time teaching positions to inter- fere with their full-time jobs on the bench. However, neither existing law nor the proposed amendment re- stricts.judges who teach part time in private institutions, such as the law schools at the University of Santa Clara, the University of San Francisco and the University of San Diego. Why should we amend our State Constitution to create one rule for judges who Wish to teach at public institu- tions and maintain another rule' for judges who wish to teach at private institutions? Allowing judges to teach part time is either a good idea or a bad idea. Given the enormous volume of criminal and civil cases filed in California's courts, it is probably, on balance, a bad 94 idea to allow judges to teach part time. Judges have an immense stack of homework every day. And, while attorneys sometimes wonder whether some judges have done their homework, allowing judges to teach part time at public institutior~s can only make matters worse. Teaching requires malay hours of prepa- ration and judges just do not have the time. A "no" vote on Proposition 94 will retain the prohibi- tion against judges teaching for pay atpublic institutions The Legislature should offer voters at the next elect~on a measure that would prohibit judges from teaching at private institutions as well. Certainly, many judges are marvelous people and teachers who bring precious insight to the classroom; however, unless and until the number of judges across the state is increased dramatically, judges will not be able to find the time to both teach and handle their heavy caseloads. With regard to my remark about at :orneys sometimes wondering whether some judges hava done their home- work, I can only hope that the remark is taken in the kindly spirit in which it was offered! GARY B. WESLEY Attorne~ at Law Rebuttal to Argument Against Proposition 94 The arguments against Proposition 94 are misguided. First, this measure WILL NOT create one set of rules for those judges who teach at public schools and another set for those who teach at private schools. Instead, judges will be subjected to the same rules on part-time teaching regardless of where they may choose to teach. This is because all judges must follow the rules of judicial conduct. These rules require judges to place primary emphasis upon their judicial duties. Judges can be re- moved from office for poor performance. This threat will serve as an effective safeguard from potential abuses that might otherwise occur. Second, the opposition asserts that on balance it is a bad idea to let judges teach part time becaUse it will worsen the already enormous number of court cases filed. Yes, there is an enormous number of cases filed in our courts. Continuing a prohibition on after-work contact between judges and law students in public schools, however, WILL NOT reduce or eliminate the number of cases filed. Instead, it will hurt our students by depriving them of the practical experience judges can bring to the classroom. Many private schools employ judges to teach on a part-time basis. These schools recognize the importance of having judges interact with students in the classroom. Judges are "specialists" in the law and the rules and procedures of the court. Improve our public school system. Permit students in public law schools to benefit from the experience judges can offer them· - Vote "yes." PETER R. CHACON Member of the Assembly, 79th DistriCt P. TERRY ANDERLINI President, State Bar of California V. GENE McDONALD Judge President, California Judges Association G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 65 Itunger and Homelessness Funding. Initiative StatUte Official Title and Summary Prepared by the Attorney General HUNGER AND HOMELESSNESS FUNDING. INITIATIVE STATUTE~ Creates public corporation to disburse funds to counties, dther political subdivisions of the state, and nonprofit organizations pursuant to countywide plans, to provide emergency and transitional services for hungry and homeless persons, and for low-income housing as specified. Funding to come from new fines for the violation of existing laws and regulations relating to housing and food preparation, and bonds secured by the revenue from these fines. Includes other provisions. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: The revenue to be collected from new fines is unknown because (1) the measure does not specify the amount of each fine and (2) the measure lets cities and counties decide the number of fines given out. Possibly, several millions of dollars could be collected each year. Analysis by the Legislative AnalySt Background Services for the Homeless. State and local govern- ments and private charities in California serve the' home- less through a variety of programs. These programs provide housing, food, and other services such as health care. Health and Safety Laws. Generally, local govern- ments enforce hca'th and safety laws. Some of these laws deal with building standards and food preparation in restaurants and otser places where food is prepared or processed. State law sets penalties for violations of these laws. The penalties include fines of up to $1,000 and jail sentences of up to one year for the first time someone breaks these laws. Cities and counties may keep some of the money collected from these fines. Cities and counties enforce these health and safety laws in different ways. Usually they order the owner to correct violations within a set time period. If the problem is not corrected in time, the city or county can do several different things. For example, it can take away the pers°n's license to operate, close the business or building, or take the person to court. In court, the judge can order the person to correct the problem, fine the person, or put the person in jail. Proposal This measure has three major parts: · Infraction Tickets. It creates new penalties for violations of laws that deal with building standards and food preparation. Cities and counties would enforce these new penalties by giving infraction tickets (citations) to persons who violate these laws. · Requirements for Spending the Money. It creates the "Corporation for California" to give out funds for services to the hungry and homeless. It also specifies how the corporation and city and county govern- ments would use the money from the infraction tickets. In general, the money would pay 'for services for the hungry and homeless, and for loW-income housing. · Bonds. It allows the new corporation to sell bonds. The money from the sale of the bonds would pay for various low-income housing programs. The corpora- tion would u~e some of the money collected from tickets to pay,i off the bonds. 66 Infraction Tickets This measure creates new fines for violations of certain health and safety laws dealing with building standards and food preparation. Violations of these laws may be charged as infractions, which are lesser crimes than misdemeanors. For example, most traffic violations are infractions. As with traffic tickets, the person charged could pay the infraction ticket or go to court to argue the citation. This measure limits the fines to no more than $250 per day for each violation. It requires the state to work with local courts to make sure the fines are reasonable. This measure also lets cities and counties charge viola- tors an additional fee to cover the costs of processing the tickets. Requirements for Spending the Money This measure creates a public corporation called the "Corporation for California.'' It would be an agency of state government with a 15-member board of directors. Its membership would include the State Treasurer, 4 members appointed by the Governor, and 5 members appointed by each' house of the Legislature. Cities and counties would collect the fines. They would keep a certain share and send the remainder to the corporation. This measure sets out the following require- ments for the use of these funds: · CitieS and counties would keep at least 10 percent, but.not more than 25 percent, of the money to cover their enforcement costs. · The corporation would give counties up to 70 percent of the money to provide temporary housing and food for those in immediate need, to expand health and food programs and employment services,. and to provide low-cost housing. Cities could receive part of these funds. · The corporation would give public or private agen- cies up to 10 percent of the money to pay for various programs to provide low-income housing. · The corporation would keep up to 10 percent of the money for administrative expenses, research, and demonstration projects. It would also provide grants to private nonprofit organizations for programs to improve services to the hungry and homeless. G88 Issuance of Bonds by Corporation This measure permits the corporation to sell bonds. The money from the sale of the bonds could be used to pay for various programs to build or fix up housing for low- income people. The corporation would use some of the ticket money it collects to pay offthe bonds. These bonds would be guaranteed by the corporation, not by the state government. Fiscal Effect The fines from the health and safety infractions would pay for the various housing and servit~e programs autho- rized by this measure. The total amotlnt of these fines is unknown because (1) the measure does not say exactly how much each "ticket" would cost arid (2) the measure lets cities and counties decide how many tickets to give out. It is possible that several millions iof dollars could be cOllected each year from these new fines. Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure amends sections of the Penal Code, adds sections to the Government Code, amends, repeals, and adds sections to the Health and Safety Code; therefore, existing sections proposed to be deleted are printed in ~tr~2~c~:~ ~,;,~c and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW CALIFORNIA HUNGER AND HOMELESSNESS ACT The People of the State of California do enact as follows: SECTION 1. Findings and Declarations. The People of the ~tate of California hereby find and declare all of the following: (a) Hunger and homelessness in California, particularly among children, the elderly, and Vietnam-era veterans, have reached epidemic proportions. More and more of the residents of this state are unable to adequately house or feed themselves and their families. (b) One in every ten Californians, including more than one million children, rely on emergency food programs for bare sustenance, while thousands more are turned away. An estimated 200,000 Californians are homeless. (c) Innovative steps to address the immediate and long-term prob- lems of hunger and homelessness are necessary in order to provide· assistance and prevent the spread of crime and disease. (d) A cost-effective and locally implemented program of housing, nutrition, health screening, job referral, and employment training must be developed to stop hunger and homelessness in California. This program must build upon existing programs and volunteer efforts. (e) This initiative will help alleviate the problems of hunger and homelessness without raising taxes or imposing new taxes on the People of California. SECTION 2. Section 19e of the Penal Code is hereby amended to read: 19e. The following offenses are subject to the provisions of subdivi- sion (d) of Section 17: Sections 330, 415, 555, and 853.7, of the Penal Code; subdivision (m) of Section 602 of the Penal Code; subdivision (b) of Section 25658 and Sections 25661 and 25662 of the Business and Professions Code; Sections 27150.1, 40508, and 42005 of the Vehicle Code, Section 14601.1 of the Vehicle Code_based upon failure to appear; Section 31002 of the Health and Safety Code, and any other offense · which the Legislature makes subject to the provisions of subdivision (d) of Section 17. Except where a lesser maximum fine is expressly provided for violation of any of such sections, any such violation which is an infraction is punishable by a fine not exceeding two hundred fifty dollars ($250). Except for Section 14601.1 of the Vehicle Code, based upon failure to appear, a conviction for any offense made an infraction under subdivi- sion (d) of Section 17 shall not be grounds for the suspension, revocation, or denial of any license, or for the revocation of probation or parole of the person convicted. SECTION 3. Chapter 7.9 (commencing with Section 8699) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER Z9. HOUSING AND NUTRITION ASSISTANCE LA W Article 1. General Provisions 8699. Title; Purpose and Intent. This chapter shall be known and may be cited as "The California Housing and Nutrition Assistance Law." It is the intent of the People to provide through this chapter a method for providing the counties of this state with additional funds for the purpose of alleviating the problems of hunger and homelessness in California. To this end, it is the purpose of this chapter to establish the Corporation for California and to empower this Corporation to issue bonds, disburse funds, and take such other action specified herein in G88 order to carry out the intent of the People. 8699.1. Definitions, For the purposes of thi* chapter, the following definitions shall apply: (a) "Affordable," with respect to housing co~ts within this chapter, shall mean housing costs not exceeding 25 percent of gross income. (b) "Area median income" shall mean the median family income of a geographic area of the state, as annually estimated by federal agencies pursuant to Section 8 of the United States Housing Act of 1937, as amended, or as otherwise estimated pursuant to the provisions of Health and Safety Code Section 50093(b). (c) "Board"shall mean the board of directorg of the Corporation for California. (d) "Bond" or "Bonds" shall mean bonds, s[~vings bonds, warrants, notes, bond anticipation notes, commercial paper or other evidences of indebtedness, or lease, installment purchase, Or other agreements or certificates of participation therein. (e) "Corporation" shall mean the Corporatlan for California. (f) "Homeless person" or "the homeless" shall mean a person or persons lacking the financial resources, mental capacity, or community ties needed to obtain housing, and shall include a person or persons at immediate risk of becoming homeless. (g) "Hungry person "or "the hungry "shall rrlean a person or persons lacking the financial resources, mental capacity,~ or community ties needed to obtain a nutritionally adequate diet, and shall include a persOn or persons at immediate risk of becomirlg hungryl (h) "County"shall mean a county of this statV, except that where the board shall elect to disburse funds to another political subdivision of this state pursuant to the provisions of Sectio~ 8699.41(a), "county" shall mean such other political subdivision. 8699.3. Amendment and Repeal. This chapter may be amended or repealed by the procedures set forth ' ' ' tn thts seatton. If any portion of subdivision (a) is declared invalid, then subdil)ision (b) shall be the exclusive means of amending or repealing this chapter. (a) This chapter may be amended to further!its purposes by statute, passed in each house by rollcall vote entered in the journal, two-thirds of the membership concurring, and signed by the Governor, if at least 12 days prior to passage in each house the bill in~ its final form has been delivered to the board for distribution to the n~ws media and to every person who has requested the board to send col3ies of such bills to him or her. (b) This chapter may be amended or repealed by a statute that becomes effective only when approved by the electors. Article 2. Corporation for Cal~Cornia~ 8699.5. Creation of Corporation. (a) There is hereby created within the Business~] Transportation, and Housing Agency the Corporation for Californial(hereinafter, the "Cor- poration "), which shall provide funds to the counties or other political subdivisions of this state for services for hungry and homeless persons, and may additionally provide funds to qualified private nonprofit agencies for demonstration and pilot program, assisting hungry and homeless persons. The Corporation constitutes a ]public instrumentality and a political subdivision of the state, anti the exercise by the Corporation of the powers conferred by this cliapter shall be deemed and hem to be the performance of an essential public'function. The corporation shall not be subject to laws or regulations which govern the rights, duties, operations, or taxation of corporations in this state. (b) The Corporation shah be administered by a board of directors consisting of the following voting members: (1) Four members appointed by the Governor, three of whom shall be persons having the following qualifications: two who shall be Continued on page 1~3 67 95 Hunger and Homelessness Funding. Initiative Statute Argument in Favor HUNGER & HOME~ESSNESS IS UNACCEPTABLE IN CALIFOR~ NIA. Proposition ~5 will help get hungry and homeless people off the streets and into a job and permanent housing without spending one dollar of tax money/ Proposition 95 will l:rovide a range of services for those who are hungry and homeless. The money will come from fines imposed on slumlords and unsanitary rood'establishments--not from your tax dol- lars! ProPosition 95 will m~ake sure this money goes to those pepole who need help--not to some ineffective state bureaucracy! How serious is the problem? Hunger and homelessness have reached epidemic proportions in California, Particularly among children, the elderly and Vietnam era veterans: I · One in ten Californians, including more than one million children, rely on emergency food programs, while thousands more are turned away. · An estimated 250,000 Californians are homeless-over 25% are families and children--most are frightened and new to the streets. Most hungry and homeless people are victims of circumstance--an illness, unemployment, an injury--things that could happen to anyone at any time. Hunger & homelessness is... a pregnant teacher's assistant who cannot work until after deliver~ and her husband, a carpenter, who hurt his back. One day, their money is gone. They end up sitting on a bus bench, wondering where they will live and what they will eat Hunger & homelessness is... a mother of two children, running from a violent husband who phy, sically abuses his family, She has run out of time at the local women s refuge. With nowhere to go and no money, the mother and her chiMren are living in the same car they escaped in. Far food, t~ey stand in line at a soup kitchen. Hunger & homelesSness is .... a Vietnam veteran who suffers seizures.from his war experience, whose ben_efit checks did not arrive because he changed addresses and noW finds himself hungnj and living in a park. ~ of PropoSition 95 Hunger & homelessness is... a 61-year-old woman whose husband, recently died, following a prolonged illness which depleted the couple s savings.'She can no longer afford the rent On the apartment they once shared, and now finds herself wandering the streets in search of food and shelter. How will Proposition 95 work? Proposition 95 is an innovative new measure which would impose a fine--similar to a traffic ticket--on lawbreakers who violate health, safety and building codes. Money from the fines will go to local governments and nonprofit charitable organizations--those most able to make a difference. Proposition 95 is cost-effective and comprehensive. The program will proviue: · emergency food and shelter · job counseling · emergency rent assistance · drug and alcohol treatment · health screening · child care Proposition 95 will create a new California Savings Bond in small denominations of $100 or less. Just as small investors once funded a war effort, Californians will help win the war against hunger and homeless- ness by investing in California Savings Bonds. Proposition 95 enjoys strong bipartisan support. It will attack the problems of hunger and homelessness wi~thout spending one dollar of tax money. VOTE YES ON PROPOSITION 95. CONWAY H. COLLIS Meraber, State Board of Equalization Proponent on behalf of Californians Working Together to End Hunger and Homelessness VALERIE HARPER Actress Advocate for the Hungry and Homeless REVEREND JOSEPH A. CARROLL President, St. Vincent de Paul--Joan Kroc Center Rebuttal to Argument in Favor ~of Proposition 95 Homelessness is un~_cceptable. BUT Proposition 95 is ineffective, unfair and wasteful.., and could make the problem even worse. THE HOMELESS WON'T BE HELPED BY: · creating a huge new government bureaucracy with dozens of political appointee~ and highly paid staffers. Fully 25% of funds could be spent for! county administration, plus millions more for state staff and administration; · burdening local tdipayers and governments with heavy new legal and court costs; ~ · creating an unworkable penalty system using mandatory quotas to raise 50 to 90 million dollars annually. This system is strongly opposed by the same environmental health inspectors required to administer it. ~ Proposition 95 could make it harder to help the homeless by giving state government an eXcuse to wash its hands of the problem. 58% of the homeless are mentally ill, alcoholics or drug addicts. Proposition 95 will be ineffective at helping these individuals and gives only lip service to rehabilitation and job training. PROPOSITION 95: · Automatically fines and unfairly penalizes even minor code viola- tions in restaurants, homes, grocery stores and apartments without allowing time for correction. · Singles out small businesses, entrepreneurs and property owners to pay for a nationwide problem without requiring most big corpora- tions to pay a dime to help the homeless. Under Proposition 95, even local grocers and restaurants providing excess.food for the hungnj are penalized--as are school cafeterias and soup kitchens. Did they cause the homeless problem? We can do a better job of helping the homeless. VOTE "NO" ON PROPOSITION 95. JEFF PALSGAARD President, California Environmental Health Association .STANLEY KYKER Executive Vice President, California Restaurant Association RONALD C. SCHULTZ, Ph.D., R.S. Professor of Health Science 68 Arguments prilated on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Hunger and Homelessness Funding. Initiative Statute Argument Against Proposition 95 Finding solutions to the problems of the homeless is a critical concern rental properties, for even the most minor violations--such as a to every Californian. But Proposition 95 is a costly/, unfair, and leaking faucet or missing light bulb. Owners and managers will be ineffective way of addressing this serious social issue, given no warnings or time to comply--fines will be issued automat- Proposition 95 creates an expensive new government bureaucracy ically to meet the law's quotas. and unfairly penalizes a few to pay for society's responsibilities. · There are OTHER ItIDDEN COSTS. Local taxpayers will pay Local grocers, restaurants, innkeepers, apartment owners and evenadditional costs for processing inspection ahd arrest warrants, and homeowners are the target for $50 MILLION TO $90 MILLION IN prosecuting violators through the court system. NEW FINES THAT MUST BE IMPOSED--to meet the law's quo- Does this sound like an effective way of helping people in need of a home or medical care? tas--by local building and environmental health inspectors in every community of the state. We've heard these promises before--how one more new government ONE OF EVERY THREE DOLLARS raised can go to pay millions in program will help fill an important social need or fund a social program. SALARIES, BENEFITS, OVERHEAD AND RESEARCH costs for this Remember the campaign promises made about how the lottery would bureaucracy--not to the homeless, save public education in California? Worse still, it does not effectively deliver the services most desper- Proposition 95 is unfair and it hurts entrepreneurs and small business, ately needed to break the cycle of homelessness--job training andas welt as consumers and renters who will eventually pay higher prices placement, substance abuse counseling and health care for mental and and rents to cover the costs of these fines. Innkeepers, corner grocery physical illness, store owners, family restaurateurs and property owners will be forced to Here are the facts: pay for a problem that belongs to us all--with millions wasted on an · PropoSition 95 creates a new state agency that has virtually nounnecessary new government bureaucracy. accountability for how it raises and spends public money. It has the We urge you to vote NO on Proposition 95. It's a well-meaning but power to issue bonds, spend taxpayers' money, impose quotas for misguided proposal for California. fines and establish costly rules and regulations. DON C. BEAVER · Fourteen new political appointees and an executive director--guar- anteed $78,000 annually in salary--will direct the new bureauc- racy. Who knows how many lawyers and other staff will be added? · Each of the 58 counties can also establish new Committees, headed up by nine more political appointees, to implement Proposition 95. · These fines will be levied on grocery stored, restaurants, inns, or Presideng California Grocers Association TRICE HARVEY Member of the Assembly, 33rd District Registered Sanitarian JEFF PALSGAARD Presideng California Environmental Health Association Rebuttal to Argument Against Proposition 95 WE CAN HELP CALIFORNIA'S HUNGRY b HOMELESS. Proposition 95 is an innovative and cost-effective attack on hunger and homelessness--without using tax dollars or creating a big new bureaucracy. Proposition 95 will provide direct assistance to the hungry and homeless and will help thousands of people become productive members of society. Here are the facts: · Proposition 95 is fair. Its funding comes from fines against negligent slumlords and unsanitary food establishments found gnflty of serious violations of health and safety codes. There is no tax increase, and no responsible business person will pay any added costs. Only lawbreakers who endanger our health and safety will be penalized. · Proposition 95 is cost-effective. Instead of creating a big new state bureaucracy it specifies that services for the hungry and homeless be provided by local governments and nonprofit agencies. In fact, Proposition 95 has a strict limit on administrative costs and specif- ically authorizes only two staff positions. · Proposition 95 is innovative. It attacks tho causes of hunger and homelessness. It provides funding for job training, drug and alcohol treatment, health care and mental health e0unseling, in addition to emergency food and shelter. With each passing day the problem only grovus worse and the solution becomes more costly to us all. By acting now we can begin to put an end to the crisis of hunger and homelessness. Proposition 95 will begin to move hungry and homeless people from the streets and into a job and permanent houSing without increasing taxes. VOTE YES ON PROPOSITION 95, TOM BRADLEY Mayor, Los Angeles WILLIAM CAMPBELL State Senator, 31st District ROBERT W. STRINGHAM Presideng California Association of Food and Drug Officials G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 69 COmmunicable Disease Tests. Initiative Statute Official Title and Summary Prepared by the Attorney General COMMUNICABLI~ DISEASE TEsTs. INITIATIVE STATUTE. Requires courts in criminal and juvenile cases, upon finding of probable! cause to believe bodily fluids were possibly transferred, to order persons charged with certain sex offenses, or certain assaults on peace officers, firefighters, or emergency medical personnel, to provide specimens of blood for testing for acquired immune deficiency syndrome (AIDS), AIDS-related conditions and other communi- cable diseases. Provides notification to specified persons of test results. Requires medical personnel in correctional facilities to report inmate exposure to such diseases and notice to personnel who come in contact with such inmates. Provides confident"ality of information reported. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: The costs of judicial proceedings to local governments and laboratory costs to local and state governments could range up to $1 million annually depending on cost of courtroom hearings, the nature of the tests, and the number of persons subject to them. Analysisby the Legislative Analyst Background Communicable Diseases. State law gives health offi- cials the authority ~o take certain actions to prevent the spread of communicable diseases such as diphtheria, typhoid, tuberculosis, and various venereal diseases, among others. For example, health authorities may isolate certain individuals infected with a communicable disease, if they feel it is necessary in order to protect the health of others, or they mhy quarantine individuals who have been exposed to ar[ infectious disease. However, the law currently makes no provision for individuals to be tested for any disease against their will. Further, a person's health status is generally held confidential by health authorities. For example, health authorities who treat a person for venerea'_ disease may contact others who have been sexually involved with that person and advise them to see a physician for examination, but officials Will not disclose the identity of the person with the venereal disease. AIDS. Acquired immune deficienCy syndrome (AIDS) is a diseas~that impairs the body's normal ability to resist serious dlseases and infections. The disease is caused by a virus-rthe human immunodeficiency virus (HIV)--that is spread through intimate sexual contact or exposure to the blood of an infected person. At the time this analysis was prepared (June 1988), there was no readily available method to detect whether a person actually has HIV, but a test does exist to detect whether a person has developed antibodies to the virus. The presence of the H!V antibody indicates that the persort has been infected with the virus. However, a person may have been infected with the HIV and still have negative test results for HIV antibodies; because it usually takes about six weeks, but can take up to six months or longer, for the antibodies tO develop in response to the infection. A person infected ~vith the HIV may or may not develop AIDS after a period of years. There is no known cure for AIDS, which is ultimately fatal. Although health officials have the authority to take the same actions to prevent the spread of AIDS as for other communicable diseases, specific laws govern HIV testing and confidentialityi They specifically prohibit involuntary HIV testing, and require that results of voluntary tests be kept confidential. A person may not be tested for anti- bodies to the HIV without his or her written consent, unless the testing is part of a scientific investigation in which blood samples are obtained anonymously. With few exceptions, no one may disclose the results of an HIV antibody test except for physicians who have been autho- rized in writing by the person tested. Anyone who makes an unauthorized disclosure may be subject to civil or criminal penalties. In addition, no one can be compelled to identify an individual who has been tested for HIV antibodies in any criminal or other governmental pro- ceeding. These provisions also apply to inmates housed in state prisons, county jails, and juvenile detention facilities who may be infected with the HIV or any communicable disease. Proposal This measure allows courts to require that certain individuals be tested for HIV infection and other com- municable diseases without their consent, and permits limited disclosure of the test results, in two situations: 1. Victims of certain sex crimes may obtain a court order requiring the person charged with the crime to be tested for the HIV antibodies and other communicable diseases, if the court determines that there is reason to believe that bodily fluids may have been exchanged during the alleged crime. o.. Peace officers (including city police officers, deputy sheriffs, members of the California Highway Patrol, cor- rectional officers, and certain other types of law enforce- ment officers), firefighters, or emergency medical work- ers who have been bitten, scratched, spit upon, or otherwise involved in a potential exchange of blood or other bodily fluids by someone interfering with their duties may obtain a court order requiring the individual to be tested for HIV antibodies and other communicable diseases, if the individual has been charged in a criminal complaint, and if the court determines that there is reason to believe that a transfer of bodily fluids may have occurred. Under the measure, the court determines which com- municable disease tests, in addition to the HIV antibody 70 i G88 test, should be administered. Copies of the test results are to be given to the person requesting the court order, to the person tested, and, if the person tested is in prison, in jail, or in a juvenile detention facility, to the officer in charge of his or her detention or incarceration. The measure also provides that if medical personnel in prisons, jails, and juvenile detention facilities learn that an inmate of the facility has been exposed to the HIV or other communicable diseases, they mUst inform the of- ricer in charge of the facility. The officer in charge must then inform ~tll staff and volunteers who may come in contact with that inmate that the inmate has been exposed. Anyone who deliberately discloses the identRy and health status of the person who was tested for HIV antibodies or other communicable diseases, beyond the disclosures required by this measure, is guilty of a misde- meanor, punishable by imprisonment in county jail for up to six months, or by a fine of up to $1,000, or by both imprisonment and a fine. Fiscal Effect The measure would result in (1) co~ts to local govern- ments for court proceedings to determine whether a person should be tested for HIV infection, or for otl~er communicable diseases, and (2) laboratory and adminis- trative costs to' local governments and the state to con- duct the blood tests, and to notify thel person requesting the test and the person tested Of the iesults. The total cost of the initiative would depend on the number of peace officers, firefighters, emergency medi- cal personnel, and victims of sex crimes who request court-ordered testing, the length of the courtroom hear- ings, and the number and type of laboratory tests ordered by the courts. Based on available datal on the number of sexgOrimes committed each year, the i~umber of assaults against peace officers, firefighters and emergency medi- cal Personnel, the costs of courtroom hearings, and laboratory costs for blood tests, it is estimated that the combined state and local costs of this measure could range up to $1 million annually. Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitutiom This initiative measure adds sections to the Health and Safety Code; therefore, the new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Adoption of Chapter. A new Chapter 1.20 commencing with section 199.95 entitled "AIDS Public Safety and Testing Disclosure" and new sections 199.95, 199.96, 199.97, and 199.98 are added to Part 1 of Division 1 of the Health and Safety Code to read as follows: 199.95. Purpose. The people of the State of California find and declare that AIDS, AIDS-related conditions, and other communicable diseases pose a major threat to the public health and safety. The health and safety of the public, victims of sexual crimes, and peace officers, firefighters, and custodial personnel who may come into contact with infected persons, have not been adequately protected by law. The purpose of this chapter is to require that information that may be vital to the health and safety of the public, victims of certain crimes, certain defendants and minors, and custodial personnel, custodial medical personnel, peace officers, firefighters and emergency medical personnel put at risk in the course of their official duties, be obtained and disclosed i~ an appropriate manner in order that precautions can be taken to preserve their health and the health of others or that such persons can be relieved from groundless fear of infection. It is the intent of this chapter to supersede in case of conflict existing statutes or case law on the subjects covered including but not limited to the confidentiality and consent provisions contained in chapters 1.11, 1.12, and 1.13 of Part 1 of Division 1 of the Health 'and Safety Code. 199.96. Sexual Crimes.. Any defendant charged in any criminal complaint filed with a magistrate or court with an~l violation of Penal Code Sections 261, 261.5, 262, 266b, 266c, 286, 288, or 288a and any minor with respect to whom a petition has been filed in a juvenile court alleging violation of any of the foregoing laws, shall be subject to an order of a court having jurisdiction of the complaint or petition requiring testing as provided in this chapter. If an alleged victim listed in the complaint or petition makes a written request for testing under this section, the prosecuting attorney, or the alleged victim may petition the court for an order authorized under this section. The court shall promptly conduct a hearing upon any such petition. If the court finds that probable cause exists to believe that a possible transfer of blood, saliva, semen, or other bodily fluid took place between the defendant or minor and the alleged victim in an act specified in this section, the court shall order that the defendant or minor provide two specimens of blood for testing as provided in this chapter. Copies of the test results shall be sent to the defendant or minor, each requesting victim and, if the defendant or minor is incarcerated or detained, to the officer in charge and the chief medical officer of the facility in which such person is incarcerated of detained. 199.97. Assaults on Officers. Any person charged in any criminal complaint filed with a magistrate or court and Ony minor with respect to whom a petition has been filed in juvenile court, in which it is alleged in whole or in part that the defendant or minor interfered with the official duties of a peace officer, firefighter, !or emergency medical personnel by biting, scratching, spitting, or transferring blood or other bodily fluids on, upon, or through the skin or] membranes of a peace officer, firefighter, or emergency medical personnel shall in addition to any penalties provided by law be subject to an order of a court having jurisdiction of the complaint or petition requiring testing as provided in this chapter. The peace officer, firefighter, emergency mqdical personnel or the employing agency, officer, or entity may petitiOn the court for an order authorized under this section. The court shall promptly conduct a hearing ~pon any such petition. If the court finds that probable cause exists tol believe that a possible transfer of blood, saliva, semen, or other bodily fluid took place between the defendant or minor and the peace officer, flrefighter, or emergency medical personnel, as specified in this section, the court shall order that the defendant or minor provide two specimen~ of blood for testing as provided in this chapter. Copies of the test results shall be sent to the d$fendant or minor, each peace officer, firefighter, and emergency medical personnel named in the petition and his or her employing agency, qfficer, or entity, and if the defendant or minor is incarcerated or detained, to the officer in charge and the chief medical officer of the facility in which such person is incarcerated or detained. 199.98. Testing. (a) The withdrawal of blood shall be peuformed in a medically approved manner. Only a physician, registered nurse, licensed voca- tional nurse, licensed medical technician, or licensed phlebotomist may withdraw blood specimens for the purposes of this chapter. (b) The court shall order that the blood specimens be transmitted to a licensed medical laboratory and that tests be conducted thereon for medically accepted indications of exposure to or infection by acquired immunity deficiency syndrome (AIDS) virus, AIDS-related conditions, and such communicable diseases for which medically approved testing is readily and economically available as determined by the court. (c) Copies of test results which indicate exposure to or infection by AIDS, AIDS-related conditions, or other communicable diseases shall also be transmitted to the State Department of Health Services. (d) The test results shall be sent to the designated recipients with the following disclaimer: "The tests were conducted in a medically approved manner but tests cannot determine exposure to or infection by ,~IDS or other communi- cable diseases with absolute accuracy. Persons receiving this test result Continued on page 127 71 96 Co nmunicable Disease Tests. Initiative Statute Argument in Favor of Proposition 96 Proposition 96 is a victim's rights measure and a public health measure. Proposition 96 is clearly constitutional and nondiscrim- inatory, providing for reasonable procedures of confiden- tiality. Proposition 96 has been developed to correct a grave injustice that existing law permits to be perpetrated against women anti children who are victims of s~ual assaults; public safety officers (police, fire, emergency medical) who are victims of physical assaults; and em' ployees and inmate~ of prisons, jails, and juvenile facilities who may be exposbd to possibly fatal disease (s). Proposition 96 will permit a judge to order a person charged with sexual assault to be tested for sexually transmittable diseases. At the request of the victim (s) of sexual assault, the results of that test will be made known to them. If the vic:im is a child, the parent or guardian will receive the results. Proposition 96 will permit a judge to order a person charged with assault upon a public safety officer (police, fire, emergency medical) to be tested for communicable disease (s), if during the assault the officer was exposed to blood or Other bodily fluids. The results of the test will be made known to the victim officer, or, if he or she is incapacitated, to the employing agency. Proposition 96 wlll permit the medical staff in prisons, jails, and juvenile facilities to notify the person responsi- ble for the care and safety of persons in that facility, whenever it is determined that an inmate is infected with Rebuttal to Argument in Proposition 96 is :aeither a victim's rights measure nor a public health me:tsure. It is a wasteful, unnecessary measure which responsible public health and law en- forcement authorities oppose. The victims of violent crimes and public safety officers do have a right to know if they have been exposed to a possibly fatal disease. Instead of doing that, Proposition 96 would scare them into thinking they have been exposed when they could aot possibly have been exposed. The AIDS virus is transmitted through sexual contact and intravenous needl~ sharing, not casual contact between citizens and publici safety officers. Violent crime victims and public safety officers who could have been ex'~osed have a right to know if the virus was transmitted to them. Since the AIDS virus isn't transmitted throug_~ every sexual contact or every needle stick, people who. truly may have been exposed need to be given testing and counseling so they can know if the AIDS or the HIV virus. This will make such notification consistent with the procedures noxv in place for other communicable diseases. This will allow for appropriate precautions in the housing and transportation of such inmates so as to reduce the risk to both employees and other inmates. Those who are the victims of violent crime have a right to know if they have been exposed to possibly fatal disease (s). Even if such knowledge may not alter the course of the disease in their own body, it can protect family members or others whom an unwary victim might otherwise expose to the disease. Our California Legislature has failed to correct this grave injustice. We, the people, must do so with our votes. Vote yes on Proposition 96. Let the victims of sexual assaults know that we don't want them to be further traumatized by the system. Vote yes on Proposition 96. Let our public safety officers know that we support them as they go about their hazardous duties of providing for our safety. Vote yes on Proposition 96. Vote for the protection of victim's rights and public health--perhaps your own or that of your loved ones. SHERMAN BLOCK Sheriff, Los Angeles County MONROE RICHMAN, M.D. Commissioner, Los Angeles County Commission on AIDS ED DAVIS State Senator, 19th District Favor of Proposition 96 virus was transmitted. Proposition 96 doesn't do that. Instead, under the guise of protecting women and chil- dren, Proposition 96 would waste millions on useless tests for people accused of crimes, The Legislature is working now on laws that apply when there truly is a risk of exposure. Those laws, and laws which give crime victims and publi~ safety officers the testing and counseling they need, are what we should have instead of the misguided waste~that Proposition 96 calls for. Proposition 96 is a mistake. Vote no on Proposition 96. MICHAEL HENNESSEY Sheriff, City and County of San Francisco ROBERT J. MELTON, M.D., M.P.H. President, Health Officers' Association of California MARCUS A. CONANT, M.D. Chairman, California Department of Health Services, Task Force on AIDS, 1983-1988 72 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Communicable Disease Tests. Initiative Statute Argument Against Proposition 96 ' Proposition' 96 is another unnecessary, heavy-handed approach to the AIDS epidemic. AIDS presents special challenges in the field of law enforcement. The State Legislature has been working with law enforcement and health officials to devise responsible legislation on these issues. Proposition 96 would be counterproductive to these promising efforts. Don't be fooled. This initiative wouldn't help crime victims or law enforcement officials. Instead, it would spread ignorance about AIDS and would waste millions of critical tax dollars on useless tests. Proposition 96 would foster the irrational fear that AIDS can be transmitted through certain crimes or through the normal course of law enforcement. California citizens should be giving crime victims, police officers, firefighters and emergency personnel all of the support we can, not instilling fears that they're being exposed to AIDS. Under Proposition 96, any citizen accused of interfering with a fire, police or emergency medical worker can be tested for the AIDS virus against their will. Those tests won't help anyone. Medical experts agree that AIDS is spread through sexual contact or intravenous needle-sharing, not through casual contact such as be- tween citizens and medical, fire and police workers. Public safety workers have the right to expect that if they have been exposed to the AIDS virus, testing and counseling will be provided to them. But Proposition 96 won't do that. Like law enforcement workers, crime victims deserve 96 to have testing and counseling made available to them if they are concerned about being expos6d. But Proposition 96 won't do that, either. ~ Proposition 96 says that persons accused of sex-related crimes can be tested without conser~t. Since the AIDS virus can't be transmitted in many sex crimes, many victims will be needlessly alarmed. Proposition 96 says that if any medical person working ih a jail believes someone has the AIDS virus, the worker must tell the person in charge, who must tell all employ- ees who might have contact with the infected person. This is foolish becaUse casual contact {an't possibly trans- mit the virus. Once the information goes to so many people, medical confidentiality can't be maintained. In- mates or others may mistreat people with the virus. Worse still, workers who could be exposed, like medical workers working with needles, might be less careful with people who have not been named as carrying the virus. The men and women who risk their lives protecting the Public safety--and citizens who have been the victims of crime---should not be frightened into!thinking that they have been infected by AIDS when they haven't been. Vote NO on this ill-advised initiative. Vote NO on Proposition 96. ! MICHAEL HENNESSEY Sheriff, City and County of San Francisco ROBERT J. MELTON, M.D., M.P.H. President, Health Officers' Association of California MARCUS A. CONANT, M.D. Chairman, California Departm. ent of Health Services, Task Force on AIDS~ 1983-1988 Rebuttal to Argument Against Proposition 96 Proposition 96 clearly articulates well-defined proce- dures designed to offer victims of sexual assaults, public safety officers, and employees and inmates in our adult and juvenile correctional facilities a measure of protec- tion against many potentially fatal diseases. In those cases wherein such persons may have already been exposed, it will enable them to act in a manner that would minimize exposing their loved ones or others with whom they might come in contact. Rather than foster an irrational fear of AIDS as the opponents postulate, Proposition 96 will offer to a sexual assault victim or public safety officer the peace of mind of knowing whether or not they have been exposed to any communicable or sexually transmittable disease. Virtually all such diseases are treatable, and they are all covered by Proposition 96. As is typical in such cases, the opponents misstate the factual content of Proposition 96. It does not mandate AIDS tests for any citizen accused of interfering with police, fire, or emergency medical v~orkers. It provides for court-ordered testing of persons who are criminally charged. In no case does Proposition 96 conc~n itself with casual contacts between persons. There mast be exposure to blood, semen, or other bodily fluids as a result of .a criminal act. I Vote yes on Proposition 96. Let the women and chil- dren who are victims of sexual assaults know that we support them. ~ Vote yes on Proposition 96. Let l our public safety officers know that you care about their well-being. SHERMAN BLOCK Sheriff, Los Angeles County MONROE RICHMAN, M.D. Commissioner, Los Angeles County Commission on AIDS ED DAVIS State Senator, 19th District G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 73 State Occupational Safety and Health Plan. I itiative Statute Official Title and Summary Prepared by the Attorney General STATE OCCUPATIONAL SAFETY AND HEALTH PLAN. INITIATIVE STATUTE. Federal law permits states to enfOrce occupatior~al safety and health standards in private sector employment pursuant to federally approved state plan. California has had such a state plan and has occupational safety laws regulating private and public employment. In 1987, the Governor took action to withdraw the plan and to reduce its funding. This measure requires funds to be budgeted for the s :ate plan and requires steps be taken to prevent withdrawal of federal approval of the plan or, if withdrawn, to reqt~ire submission of new plan. Other changes are made. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: The cost to state government depends on the results of legal action on the issue of the state's present obligation to administer private sector enforcement. If it is held that the Governor legally terminated ~he private sector Cai-OSHA program, then, assuming the previous level of federal matching funds is made available, the annual net increase in General Fund costs could exceed $12 million, which would be offset by revenue from fines of approximately $1.6 million annually. If it is held that the state already has an obligation to administer the private sector program notwithstanding the Governor's action, then annual State General Fund costs could be approximately $700,000 to administer a mine inspection program. Analysis by the Legislative Analyst Background Under the 197C Federal Occupational Safety and Health Act (OSHA), programs have been established to protect the life, safety and health of workers. These programs are operated either by the federal government or by an individual state under a federally approved plan. The federal government pays about half of the costs of operating approved state programs. California has operated its own program--referred to as Cai-OSHA---since 1973. Under Cai-OSHA, the State Department of Industrial Relations (DIR) enforces work- place standards and regulations for both the private and public sectors. In 1987, however, the Governor requested withdrawal of the Private-sector component of the state plan and eliminated funding for that component. This action was challenged, and a state appellate court ruled that the state must continue operation of the private- sector program. A~ the time of this writing (June 1988), this decision was on appeal to the California Supreme Court. In the meantime, the federal government has been operating its ~wn private-sector workplace enforce- ment program in the state. Federal workplace standards are not as strict as lthe state's, and currently the federal enforcement program has fewer staff than the state had in 1987. ~ In addition, a California court ruled in 1986 that state law prohibited DIR from enforcing state workplace health and safety standards where the 'federal govern- ment is actively enforcing federal standards. This decision resulted in the state discontinuing enforcement of state standards for mines and tunnels, because the federal government was actively enforcing its standards. Proposal This measure requires the Governor and DIR to take whatever steps are necessary to restore state operation of the private-sector Cai-OSHA program. The measure also requires the Governor to: (1) propose sufficient funds in the budget submitted to the Legislature to minimize the risk to workers from industrial injuries, illnesses and 74 ~ exposure to toxic substances, and (2) seek the maximum level of federal funds to support the costs of administering the state plan. Th~ measure also authorizes the state to enforce state workplace health and safety standards in situations where the federal government is actively enforcing federal standards (referred to as "concurrent jurisdiction"). This would be allowed, however, only if specifically permitted by federal law. Fiscal Effect The fiscal effect of this measure would depend on how the California Supreme Court rules on' the state's obliga- tion to conduct a private-sector Cai-OSHA program. If the Court Finds No Existing. Obligation to Operate the Program. If the court rules that the Governor legally terminated the private-sector Cai-OSHA program, this measure would impose new costs on the state by requir- ing it to restore the program. Reestablishing the program would cost about $23 million annually. About half of these costs ($11.5 million) would be paid from the State General Fund and the balance from the federal funds. This estimate assumes that the state's previous level of Cai-OSHA activity would be sufficient to minimize risks to workers, and that the state would receive matching federal funds. In addition to the $11.5 million in state costs to reestablish the Cai-OSHA program, the state also could incur costs due to the "concurrent jurisdiction" provision. If the state authorized the enforcement of state work- place health and safety standards for mines and tunnels, it would incur annual General Fund costs of about $700,000. Thus, total state costs under this measure could exceed $12 million annually. The reestablishment of a private- sector Cai-OSHA program also would result in additional state revenues from the collection of fines imposed on violators of health and safety laws. It is estimated that these additional General Fund revenues would total~ approximately $1.6 million annually. If the Court Finds an Existing State Obligation to Operate the Program. If the court rules that the state is G88 already legally obligated to fund the private-sector Cal- OSHA program, the program would be reestablished regardless of this measure. Consequently, the Cai-OSHA provisions of this measure would have little or no effect. The "concurrent jurisdiction" provision, however, could have a fiscal impact. If the state authorized the enforce- ment of state workplace health and safety standards for mines and tunnels, it would incur annual General Fund costs of about $700,000. Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure amends and adds sections to the Labor Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW CALIFORNIA OCCUPATIONAL SAFETY AND HEAL TH RESTORATION A CT SECTION 1. The people of California find and de- clare that: (1) Californians have the right to be effectively pro- tected from injury, illness, and death in the workplace, and from the hazards of exposure to toxic substances on the job and in the community. (2) The restoration of adequate state standards and enforcement policies to reduce exposure to cancer-causing substances, chemicals that cause birth defects, and Other toxic materials is in the interest of all Californians. (3) Catastrophic releases of such contaminants into our communities can best be prevented through the restoration of effective state safety and health practices in the workplace, including proper equipment and main- tenance policies, employee training, and safe handling of toxic materials. (4) We disapprove of the elimination in 1987 of Cai~OSHA, the California Occupational Safety and Health Administration, and the transfer of control over worker safety and health to the federal government. (5) Cal/OSHA has a superior record to Federal OSHA in regulating hazardous industries and occupations such as construction, manufacturing, transportation, electron- ics, chemical, mining, utilities, service, health care, retail and entertainment. (6) Over the years Cal/OSHA has served as a safety and health model for other states. (7) A weaker safety and health system means in- creased death, illness, disabling injuries, pain and suffer- ing for the working people of California. (8) It is more cost effective for California employers to retain state control over workplace health and safety matters. (9) The ~cost of restoring Cal/OSHA to the state is minor (a fraction of one percent of the state's budget) especially when compared to the amounts spent on bureaucratic activities of a less essential nature. More- over, almost half of Cal/OSHA 's budget wouM be paid for by federal grants. (10) It is the Purpose of this Act to restore California control over private sector safety and health, which the state has provided for since 1913, and has administered since 1973 through Cai~OSHA. Pursuant to Article XIV, Section 4, of the California Constitution, state jurisdic- tion over worker safety and health should not be limited, eliminated or otherwise restricted, u~less absolutely re- quired by the Federal Constitution. i SECTION 2. Section 50.7 of thb Labor Code is amended to read: i 50.7. (a) The Department of Industrial Relations is the state agency designated to be responsible for admin- istering the state plan for the development and enforce- ment of occupational safety and health standards relating to issues covered by corresponding i standards promul- gated under the federal Occupationa! Safety and Health Act of 1970 (Public Law 91-596). The state plan shall be consistent with the provisions of state law governing occupational safety and health, including, but not lim- ited to, Chapter 6 (commencing with Section 140) and Chapter 6.5 (commencing with Sectio~ 148) of Division 1, and Division 5 (commencing with Section 6300), of this code. (b) The 'budget and budget bill submitted pursuant to Article IV, Section 12 of the California Constitution shall include in the item for the support of the Department of Industrial Relations amounts sufficient to fully carr~ out the purposes and provisions of the ~tate plan and this code in a manner which assures that the risk of industrial injurT, exposure to toxic substances, iilness and death to employees will be minimized. (c) Because Federal grants are a~ailable, maximum Federal funding shall be sought and, to the extent possible, the cost of administering the state plan shall be paid by funds obtained from federal grants. (d) The Governor and the Department of Industrial Relations shall take all steps necessary to prevent with- drawal of approval for the state plan by the Federal government. If Federal approval of the state plan has been withdrawn before passage of this initiative, or if it is withdrawn at any time after passage of this initiative, the Governor shall submit a new stat~ plan immediately so that California shall be approved a~d shall continue to have access to Federal funds. I SECTION 3. Section 6303.5 is added to the Labor Code to read: i 6303.5. Nothing in this division skall be construed to limit the jurisdiction of the state overiany employment or place of employment by reason of the exercise of occupa- tional safety and health jurisdictibn by any federal agency if federal jurisdiction is being exercised under a federal law which expressly authorizes concurrent state jUrisdiction over occupational safety or health issues. SECTION 4. To further its purposes, this initiative may be amended by statute passed tn each house by a two-thirds vote. SECTION 5. If any ~ection, part, clause or phrase of this measure is for any reason held invalid or unconsti- tutional, the remaining portions shall not be affected but shall remain in full force and effect. 75 97 Stal Init e Occupational iative Statute Safety and Health Plan. Argument in Favor of Proposition 97 Each year, 11,000 tmericans die in work-related accidents. Two million more suffer disabling job-related injuries or ill- nesses. The American Lu_-ag Association of California, League of Women Voters, California Medical Association, Sierra Club, the California Labor Federation and many other organizations have joined together to restore California's respected job safety program. For over 70 years California led the nation in protecting our citizens from workplace health and safety hazards. In 1973 these regulations were brought together under the California Occu- pational Safety and Health Administration, Cai-OSHA. Cai- OSHA was the model of an effective state job safety program, winning praise from business and labor leaders, and health professionals. In 1987, state func-ing for Cal-OSHA regulation of private industry worksites was eliminated. An inferior Federal OSHA program took over. A comparison of Ca.-OSHA and Federal OSHA clearly proves that our state plan did a vastly better job of safeguarding the health of all Californians. CANCER PREVENTION AND TOXIC CONTAMINATION --Federal OSHA does not regulate exposure to 170 toxics that were controlled by Cai-OSHA. For an additional 95 chemicals, federal regulations allow greater exposure than Cai-OSHA permitted. These include toxics that cause cancer, birth defects, and sterility. Toxic contamination threatens everyone, not only workers. Cai-OSHA also had special medical and cancer units to control exposure to toxics. Federal OSHA has no comparable program. INSPECTIONS OF HAZARDS AND ACCIDENTS--During the first nine months after Federal OSHA took over, total workplace inspections dropped by 65% compared to Cai-OSHA inspections in the same nine-month period one year earlier. Cai-OSHA could shut down equipment or job sites posing imminent dangers of death or serious injury. Federal OSHA requires a time-consuming federal court procedure before it can stop an imminent threat. DANGEROUS OCCUPATIONS that were closely regulated by Cai-OSHA are poorly controlled by Federal OSHA, including those in construction, oil refineries, logging, utilities and trans- portation. PROSECUTION of those who willfully violate Safety laws and kill or maim workers rarely occurs under Federal OSHA. From 1975 to 1985 California district attorney§ prosecuted over 200 criminal cases resulting from Cai-OSHA investigations. Between 1970 and 1987 Federal OSHA investigations resulted in only 14 such prosecutions. In June 1988, the U.S. General Accounting Office, a govern- ment watchdog agency, told Congress that under Federal OSHA, "workers in California no longer have the benefit of all the occupational safety and,health standards and exposure limits used in the state program. · Nearly every major daily newspaper in California has called for the retention of Cai-OSHA. Leaders from both political parties, including Lieutenant Governor Leo McCarthy and U.S. Senators Alan Cranston and Pete Wilson, support the restoration of Cai-OSHA. Californians are entitled to the superior protections of Cai- OSHA. Join us in renewing an agency that saved lives, pre- vented injuries and protected the environment from toxics. Please vote "YES" on Proposition 97, to restore California's Occupational Safety and Health program. JOHN F. HENNING Executive Secretary-Treasurer, California Labor Federation, AFL-CIO MICHAEL PAPARIAN State Director, Sierra Club California LAUR,EN$ P. WHITE, M.D. President, California Medical Association The proponents' ~laim that federal OSHA is an inferior program is wrong. IN THE LAST SIX MONTHS OF 1987 UNDER FEDERAL OSHA, THE RATE OF WORK-RELATED INJURIES AND ILLNESSES IN CAL-FORNIA DECLINED FROM THAT OF THE LAST SIX MONTHS OF 1986 UNDER CAL/OSHA. Federal OSHA has conducted a successful safety and health program in a majority of states for more than 15 years and has conducted a successful program in California for the past year. Dedicated professionals of federal OSHA has broad enforce- ment aUthority and have brought to bear in California the full force and effect of federal law, backed by the powers of the federal courts. LISTEN TO A sTATEMENT FROM ANOTHER STATE WITH LONG EXPERIENCE UNDER FEDERAL OSHA: "IT HAS BEEN! OUR EXPERIENCE IN NEW JERSEY THAT THE FEDEI~AL SAFETY AND HEALTH INSPEC- TION PROGRAM HAS DONE A GOOD JOB PROTECTING OUR WORKERS. GIVEN THE FEDERAL GOVERN- Rebuttal to Argument in Favor of Proposition 97 MENT'S IMPRESSIVE TRACK RECORD, WE WOULD NOT CONSIDER STARTING OUR OWN DUPLICATIVE WORKER SAFETY PROGRAM."--Charles Serraino, New Jersey Commissioner of Labor. Proponents are distorting the facts and arguing from half truths. Federal OSHA has the authority to secure work stoppage when a hazardous situation is detected. It is empowered to go into any business at any time to prevent danger to employees. It doesn't need more paperwork. It gets the job done with experience and common sense. Proposition 97 has nothing to do with worker safety. It has everything to do with big government, more bureaucrats, and higher taxes. Please vote NO on Proposition 97. GEORGE DEUKMEJIAN Governor ROBERT STRANBERG Chief, State Division of Occupational Safety and Health JOHN HAY Former President, California Chamber of Commerce 76 Arguments prinl~edon this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 State Occupational Safety and Health P] Initiative Stat Argument Against Proposition 97 PROPOSITION 97 ASKS STATE TAXPAYERS TO PAY FOR A SERVICE THAT THEY ARE ALREADY FUNDING WITH THEIR FEDERAL TAX DOLLARS. WHY SHOULD CALI- FORNIA TAXPAYERS HAVE TO PAY FOR THE SAME SERVICE TWICE? Proposition 97 will waste millions of taxpayer dollars and add hundreds of bureaucrats to the government payroll without increasing worker safety in the workplace one bit. No one disputes the fact that government has a responsibility to protect employees in the workplace. To do the job, we need one good worker safety program. We don't need two duplica- tive ones. YOUR "NO" VOTE WILL PREVENT DUPLICA- TION IN GOVERNMENT AND PRESERVE WORKER SAFETY. California now has a good worker safety program. Like 27 other states, including New York, New Jersey and Illinois, our worker safety program is administered by the federal govern-' ment. Since the enforcement aspect of California's program was turned over to federal authorities, the rate of occupational injuries and illnesses has actually declined. HOW MANY TIMES HAVE YOU HEARD PEOPLE, ESPE- CIALLY 'ELECTED OFFICIALS, SAY THAT WE NEED TO Rebuttal to Argument Proposition 97 does not waste any state tax dollars. In fact, penalties against violators of the law generated a substantial percentage of Cal-OSHA's budget. The state budget amounts to about $1,600 for every Californian; only 25¢ went to Cai-OSHA. And Proposition 97 would bring back over $11 million annually in federal funds that Cai-OSHA used to receive. Proposition 97 makes good business sense. Cal-OSHA's stronger health and safety standards saved Californians money by helping control medical, insurance and welfare costs. On June 21, 1988, the Sacramento Bee newspaper reported: "There has been a dramatic drop in safety inspections at California job sites since California's worker safety program was abolished last year, a congressional panel was told Monday~" The U.S. General Accounting Office has said Cai-OSHA had stricter toxic limits and "quicker action" on hazards that could threaten death or injury. Under Federal OSHA, Californians ute CUT GOVERNMENT WASTE AND DUPLICATION? THE GOVERNOR DID THAT AND NOW THOSE WHO SUPPORT THIS PROPOSITION WANT TO STOP IfIM. VOTE "NO" AND TELL THESE BIG GOVERNMENT ADVOCATES THAT YOU WANT WORKER SAFETY BUT NOT DUPLICATION. Government already costs enough and llaxes are already high enough, without establishing duplicative programs to provide services we are already receiving. Voting for Proposition 97 is like asking the sales clerk at the grocery store to let you pay for the same groceries twice! California workers already have a fine worker safety program. Why pay again for the same protection? VOTE "NO" ON PROPOSITION 97. GEORGE DEUKMEJIAN ROBERT STRANBERG Chief, State Division of Occupational Safety and Health JOHN HAY Former Presideng California Ghamber of Commerce Against Proposition 97 face greater exposure to toxics that can cause cancer, birth defects and sterility. A 1987 study by a U.S. government investigatory agency criticized Federal OSHA's "total paralysis" in fulfilling its duties. The National Workplace Safety Institute concluded this sum- mer that "a construction worker in a federally regulated state is three times more likely to die on the job than one in California." Please consider these nonpartisan reports and help restore California's Occupational Safety and Health Administration by voting "Yes" on Proposition 97. CAROL FEDERIGHI President, League of Women Voters of California HEWITr F. RYAN, M.D. President, California Society of Industrial Medicine and Surgery IRA REINER District Attorney of Los Angeles COunty G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 77 Sahool Funding. Initiative Constitutional Amendment and Statute Official Title and Summary Prepared by the Attorney General SCHOOL FUNDING. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Amends State Constitu- tion by establishing a minimum level of state funding for school and community college districts; transferring to such districts, within limits, state revenues in excess of state's appropriations limit; and exempting excess funds from appropriations limit. Adds provisions to Education Code requiring excess funds to be used solely for instructional improvement and accountability and requiring schools to report student achievement, dropout rates, expenditures per student, progress toward reducing class size and teaching loads, classroom discipline, curriculum, quality of teaching, and other school matters. Contains other provisions. Summary of Legislative Analyst's estimate of net state and local governme.qt fiscal impact: Meeting the required minimum funding level for schools and community college districts will result i:n State General Fund costs of $215 million in 1988-89. No excess state revenues are expected in 1988-89 for transfer to schools and community colleges. Local administrative costs are estimated to be $2 million to $7 million a year for preparation and distribution of School Accountability Report Cards. No fiscal effect can be identified for the required prudent reserve fund. Analysis by the Legislative Analyst Background The state provides funding for public schools and community colleges, adjusted each year to reflect changes in inflation and student enrollment. Under the California Constitution, most government entities (including 'the state and local school districts) have a limit on the amount of tax revenues they can appropriate each year, adjusted annually to reflect changes in inflation and population. Whenever a govern- ment entity does not appropriate all of its tax revenues, these "excess revenues" must be returned to taxpayers. Proposal This measure maizes changes in the way the state funds public schools and t~eats excess revenues. Specifically, the measure does the fgllowing: · Establishes a minimum level of funding for public schools and community colleges. · Requires the state to spend any excess revenues, up to a specified maximum, for public schools and community colleges. Other provisions of the measure would (a) increase the state's appropriations limit so that these funds may be spent and (b) raise the minimum leve~ of funding for public schools and community coLeges by the amount of excess reve- nues they receive. · Requires the L~gislature to establish a state reserve fund. · Requires schooI districts to prepare and distribute "School Accountability Report Cards" each year. Minimum Funding Level. Starting in 1988-89, this measure requires the state to provide a minimum level of funding for public schools and community colleges. The measure spacifies two methods for determining what the minimum funding level should be and requires the state to use the method that results in the larger amount. · The first method would require the state to ensure that the percentage of State General Fund revenue that is allocated to public schools and community 78 colleges is not less than the percentage that was allocated to them in 1986-87. · The second method would require the state to ensure that public schools and community colleges receive from state and local tax revenues the same total amount of funds received from these sources in the prior year, adjusted for changes in inflation and increases in enrollment. The measure permits the enactment of legislation, by a two-thirds vote, to suspend the minimum funding re- quirement for one year. Distribution of Excess Revenues. This measure re- quires any excess revenues to be distributed to public schools and community colleges rather than returned to taxpayers. The measure limits the amount the state may distribute each year to 4 percent of the minimum school funding level. In 1988-89, this limit would be about $500 million. Any remaining amount above this limit would be returned to taxpayers. If excess revenues are distributed in any year, the measure requires that the state's appropriations limit be increased by this amount in the next year. Any excess revenues that public schools or community colleges re- ceive would permanently increase their minimum fund- ing levels. The measure requires public schools and commUnity colleges to ~use these additional funds for "instructional improvement and accountability." It also requires that these, funds be in addition to--rather than a replacement for--other funding and be kept in a separate account. The distribution of excess revenues to public schools would not be required in any year in which the Superin- tendent of Public Instruction and the Director of Finance determine that both of the following conditions have been met: · The annual expenditure per student in California is equal to or greater than the average annual expen- diture per student of the 10 states with the highest annual expenditures per student for elementary and high schools. G88 · The average class size in California is equal to or less than the average class size of the 10 states with the lowest class size for elementary and high schools. Similarly, the distribution of excess revenues to com- munity colleges would not be required in any year in which the Chancellor of the California Community Col- leges and the Director of Finance determine that the annual expenditure per student in' California is equal to or greater than the annual expenditure per student of the 10 states with the highest annual expenditures per stu- dent for community colleges. School Accountability Report Card. This measure re- quires the Superintendent of Public Instruction to ap- point and consult with a task force to develop a model School Accountability Report Card by March 1, 1989. The model report card would contain information on a variety of school conditions, including student achievement, dropout rates, expenditures, class size, teacher assign- ment, textbook quality, student services, school safety, teacher evaluation and staff development, classroom dis- cipline, and instructional quality. This measure requires each public school district to issue an annual School Accountability Report Card for each of its schools, beginning in 1989-90. The measure does not require school districts to adopt the statewide model but, at a minimum, each report card must contain information on the conditions listed above. State Reserve Fund. This measure requires the Leg- islature to establish a prudent state reserve fund each year. The measure does not sPecify the amount of the reserve. Fiscal Effect Minimum Funding Level. This measure would result in State General Fund costs of aboUt $215 million in 1988-89. This would bring funding foripublic schools and community colleges to the same percentage level they had in 1986-87. There would be unknown increases in General Fund costs in the future tO maintain school funding at the minimum funding level. ExceSs Revenues. It is unclear at !this time whether the state will have excess revenues in 1988-89. If there are such excess revenues in 1988-89 or inl future years, they would be distributed to public schools and community colleges, up to the specified annual maximum--S500 million in 1988-89. Report Cards. It would cost local schools from $2 million to $7 million each year to prepare and distribute the School Accountability Report Cards. State Reserve Fund. The requirement to establish a state reserve fund would have no fiscai effect because the state already maintains a reserve fund and the measure does not specify an amount that mustl be allocated to it. Text of Proposed Law This initiative measure is submitted to the people in accordance with · the provisions of Article II, Section 8 of the Constitution. This initiative meast/re expressly amends the Constitution by amend- ing and adding sections thereto, and adds sections to the Education code; therefore, existing sections proposed to be deleted are printed in gtr~kcc.'.:t t;,'~c and new pro. visions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. This Act shall be known as "The Classroom Instruc- tional Improvement and Accountability Act" SECTION 2. Purpose and Intent. The People of the State of Cali- fornia find and declare that: (a) California schools are the fastest growing in the nation. Our schools must make room for an additional 130,000 students every year. (b) Classes in California's schools have become so seriously over- crowded that California now has the largest classes of any state in the nation. (c) This act will enable Californians to once again have one of the best public school systems in the nation. (d) This act will not raise taxes. (e) It is the intent of the People of California to ensure that our schools spend money where it is most needed. Therefore, this Act will require every local school board to prepare a School Accountability Report Card to guarantee accountability for the dollars spent. (f) This Act will require that excess state funds be used directly for classroom instructional improvement by providing for additional in- structional materials and reducing class sizes. (g) This Act will establish a prudent state reserve to enable Califor- nia to set aside funds when the economy is strong and prevent cutbacks or tax increases in times of severe need or emergency. SECTION 3. Section 5.5 is hereby added to Article XIIIB as follows: SECTION 5.5. Prudent State Reserve. The Legislature shall estab- lish a prudent state reserve fund in such amount as it shall deem reasonable and necessary. Contributions to, and withdrawals from, the fund shall be subject to the provisions of Section 5 of this Article. SECTION 4. Section 2 of Article XIIIB is hereby amended to read as follows: SECTION 2. Revenues in Excess of Limitation. (a) All revenues received by the state in excess of that amount which is appropriated by the state in compliance with this Article, and which would otherwise be required, pursuant to subdivision (b) of this G88 Section, to be returned by a revision of tax ratesior fee schedules within the next two subsequent fiscal years, shall be transferred and allocated pursuant to Section 8.5 of Article XVI up to !the maximum amount permitted by that section. (b) Except as provided in subdivision (a) of this Section, revenues received by any entity of government in excess of that amount which is appropriated by such entity in compliance with this Article during the fiscal year shall be returned by a re~ision of tax rates or fee schedules within the next two subsequent fiscaI years. SECTION 5. Section 8 of Article XVI is hereby amended to read as follows: SECTION 8. School Funding Priority (a) From all state revenues there shall first be set apart the monies to be applied by the state for support of the public school system and public institutions of h~igher education. (b) Commencing with the 1988-89 fiscal Year, the monies to be applied by the state for the support of school districts and community college districts shall be not less than the greater of. (1) The amount which, as a percentage of the State General Fund revenues which may be appropriated pursuant ito Article XIIIB, equals the percentage of such State General Fund revenues appropriated for school districts and community college districtS, respectively, in fiscal year 1986-87; or (2) The amount required to ensure that the tt~tal allocations to school districts and community college districts fro m~he State General Fund proceeds of taxes appropriated pursuant to Article XIIIB and allocated local proceeds of taxes shall not be less than the }otal amount from these sources in the prior year, adjusted for increases in enrollment, and adjusted for changes in the cost of living pursUant to the provisions of Article XIIIB. (c) The provisions of subdivision (b) of this Section may be sus- pended for one year by the enactment of an urgency statute pursuant to Section 8 of Article IV, provided that no urgendy statute enacted under this sub. division may be made part of or included within any bill enacted pursuant to Section 12 of Article IV. SECTION 6. Section 8.5 of Article XVI is hbreby added as follows: SECTION 8.5. Allocations to State School Fund (a) Yn addition to the amount required to be applied for the support of school districts and community colleges pursuant to Section 8(b), the Controller shall during each fiscal year tralnsfer and allocate all revenues available pursuant to subdivision (aH of Section 2 of Article 7ontinued on page 127 79 98 SchOol Funding. Initiative Constitutional Amendment andi Statute Argument in Favor of PrOposition 98 Proposition 98, ~he School Funding for Instructional Improvement and Accountability Initiative, is a well- thought-out plan for California's schools to once again be among the very best in the nation. Proposition 98 will not raise taxes; it just tells the politicians how to spend state funds to make our schools better. · Today, classes are overcrowded. California packs more students into its schoolrooms than any other state. And 140,000 more young people are entering our schools each and every year. · We can't give enough attention to essential subjects and we've had to eliminate some courses entirely. · We have far too few counselors to help our youth plan their educational and job futures, and to work with those who show signs of delinquency and drug abuse. In the last ten years the percentage of local property tax dollars used to support local schools has decreased from 43% to 32%. The percentage of our personal income spent on public education has declined from 4.6% to 3.3%, which means a loss of $1,000 a year per student. Those are only a few of our schools' problems. But they're big ones. And unless we, the voters, do something about them, our state's economy and every Californian's well-being will suffer. It wasn't always ~his way. By 1910, a provision was added to the California Constitution whichl required that the Legislature first set aside funds for the !'support of the public sc}fool system." Beginning in thei 1920s the State Constitution required a minimum amount of money be spent on each student. And over the years the specific dollar amount spent on each child was adjusted for inflation. All that has changed. Every year for the last ten years, our schools asked the Rebuttal to Argument in Despite the claims of its supporters, Proposition 98 will do nothing to improve the quality of education in Cali- fornia. It will not improve student performance or make teachers and administrators more accountable. It will likely cause an increase in your taxes. Proposition 98 is an attempt by the teachers' unions and the educational bureaucracy' to guarantee a certain level of state funding for~ K'12th-grade schools and community colleges--regardles~ of any other wtal state and local needs, and regardless of whether they are doing a good job in spending those funds and teaching our children. This year, California will invest more than $20 billion in our K-12th-grade schools--an increase of nearly $8 billion in the past five years. Total .school funding has increased 78 percent during this time period--far in excess of inflation. With,this .evel of support, many people believe that California s schools should be doing better. The Proponents of Proposition 98 don't realize that politicians for help. Year after year they said, "We'd like to help, but we just can't agree among ourselves." We are asking you to step in and reestablish public education as a first priority in our state. We recognize that there'll never be enough money for everything. But, since our elected leaders in Sacramento cannot seem to agree on how to spend existing tax dollars, the schoolteachers and the PTA have written a plan for school funding, instructional improvement, and accountability. · Proposition 98 takes school-financing out of politics by ensuring a minimum funding level for schools which the Legislature and Governor must honor except in fiscal emergencies. · Proposition 98 requires that if there is a state budget surplus over and above the government spending limit, the mOney that goes for education can only be used for instructional improvements, paying teachers, or reducing class size. · Proposition 98 makes schools accountable by requir- ing that each school make public a progress report on test scores, dropout rates, classroom discipline, class size, instructional materials, the quality of instruction and school leadership. We're proud that over 1,000,000 Californians signed our initiative and put it on the ballot. Proposition 98 gives us a chance to m,a,.ke ,o,,ur schools number one again. Please vote 'YES on Proposition 98, the School Fund- ing for Instructional Improvement and Accountability Initiative. ED FOGLIA Presideng California Teachers Association HELEN H. LINDSEY Presideng California State PTA Favor of Proposition 98 bigger budgets don't necessarily buy better schools. Many of the most effective reforms taking place in our class- rooms today--such as more homework, greater parental involvement, increased discipline and more rigorous courses--do not take additional money. They are the result of increased commitment by principals, teachers, students and parents. If California hopes to retain its place as a leadership state, we need to provide our students with quality education but Proposition 98 will do nothing to help us meet this goal. VOTE NO ON PROPOSITION 98. GEORGE DEUKMEJIAN (~ot~erno~' GEORGE CHRISTOPHER Chairman, California Commission on Educational Quality RICHARD P. SIMPSON Executive Vice President, California Taxpayers'Association 8O Arguments prinled on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 School Funding. Initiative Constitutional Amendment and StatUte 98 Argument Against Proposition 98 Education is already California's top budget priority. Over 50% of all the dollars that you pay into the state's General Fund are spent on schools. SINCE 1982, CALI- FORNIA'S PUBLIC SCHOOLS HAVE RECEIVED A 78% INCREASE IN FUNDING, WHILE STUDENT EN- ROLLMENT HAS RISEN ONLY 14%. Average teacher salaries are now the fifth highest in the nation. Since 1982, the Governor and the Legislature have provided schools with funding increases every year. Proposition 98 would place a provision in the Constitution which mandates a certain level of school funding even if it means cutting other services, such as health care for senior citizens, funds to fight drug trafficking or pro- grams to reduce traffic congestion. Proposition 98 would place all other important state services at risk. Proposition 98 would throw away the reasonable limit on state spending imposed by a vote of the people. In just a few years, Proposition 98 would surely require a major tax increase. And for what? Proposition 98 will certainly increase the level of school bureaucracy, but does it guarantee that your children will receive better schooling? Absolutely not! If you want to continue to increase funding and quality of education ,without raising taxes anal without cutting other services such as health care, ~ansportation and public safety, then vote "NO" on Proposition 98. GEORGE DEUKMEJIAN GEORGE CHRISTOPHER Chairman, California Commission on Educational Quality RICHARD P. SIMPSON Executive Vice Presideng California Taxpayers'Association Rebuttal to Argument Against Proposition 98 By including hundreds of millions of dollars spent on state universities and colleges, opponents of Proposition 98 attempt to make it seem that all is well in our public elementary and high schools. But using "statistics" cannot hide the simple truth. Today we spend just one real dollar more per student per day in our schools than 10 years ago. That puts California 48th among the 50 states in percent of personal income spent on schools. We rank dead last on average class size. 1. Vermont 10. Nebraska 19. Maine 2. Wyoming 11. North Dakota 20. Oklahoma 3. Connecticut 12. Montana 21. Pennsylvania 4. Massachusetts 13. South Dakota 22. Illinois 5. New York 14. West Virginia 23. Virginia 6. Kansas 15. Iowa 24. Maryland 7. Rhode Island 16. Wisconsin 25. Florida 8. New Jersey 17. Delaware 26. Minnesota 9. New Hampshire 18. Missouri 27. Oregon 28. South Carolina 36. Kentucky 44. Alabama 29. Arizona 37. Indiana 45. Tennessee 30. Texas 38. Georgia 46. Michigan 31. Louisiana 39. Ohio 47. Washington 32. Arkansas 40. North Carolina 48. Idaho 33. New Mexico 41. Hawaii 49. Utah 34. Mississippi 42. Alaska 50. California 35. Colorado 43. Nevada Proposition 98 only guarantees schools as much money as they received in the last year adjusted to pay for new children and inflation. It does not raise taxes. It reforms the system by requiring that extra money is only spent for instructiOnal improvement. And it sets up a comprehensive program which holds educators accountable for the job they do and the tax dollars they spend. BILL HONIG State Superintendent of Public Instruction RAY TOLCACHER Presideng Association of California School Administrators G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 81 CC Cigarette and Tobacco Tax. Benefit Fund. · Initiative Constitutional Amendment and Statute Official Title and Summary Prepared by the Attorney General CIGARETI'E AND TOBACCO TAX. BENEFIT FUND. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Imposes additional tax upon cigarette distributors of one and one-fourth cents (1¼ cents) for each cigarette distributed. Imposes tax upon distributors of other tobacco products which is equivalent to combined rate of tax imposed on cigarettes. Directs State Board of Equalization to determine this tax annually. Places moneys raised in special account Which can only be used for: treatment; research of tobacco-related diseases; school and community health education programs about tobacco; fire prevention; and environmental Conservation and damage restoration programs. Declares revenues not subject to appropriations limit. Summary of Legislative Analyst's estimate of net state and local gov6rnment fiscal impact: Will raise additional state revenueS of approximately $300 million in 1988-89 (part year) and $600 million in 1989-90 (first full year). These revenue increases would decline gradually in subsequent years. Annual administrative costs are estimated at $500,000 in 1988-89 and $300,000 in subsequent years. There would be n~ substantial net effect on sales and excise tax revenues to the state, cities, and counties. Analysis by the Legislative Analyst Background Current law imposes a state excise tax which amounts to 10 cents for each pack of 20 cigarettes. This tax is collected by the State Board of Equalization. Seventy percent of the proceeds are distributed to the State General Fund, and the remainder to cities and counties. i' Proposal This measure imposes an additional excise tax on cigarettes which amounts to 25 cents for each pack of 20 cigarettes. The to~al excise tax, therefore, would be 35 cents for each pack. In addition, it imposes a new excise tax on other types of tobacco products, such as cigars, chewing tobacco, pipe tobacco, and snuff. The rate of this tax would be determined by the Board of Equalization, and would be equivalent to the total excise tax on cigarettes. The measure reqUires the revenues from the additional taxes to be spent for the following purposes: · Health Education. Twenty percent must be used for the prevention and reduction of tobacco use, primarily among children, through school and com- munity healthi education programs. · Hospital ServiCes. Thirty-five percent must be used to pay hospitals for the treatment of patients whO cannot afford to pay, and for whom payment will not be made thr6ugh private coverage or federally funded programs. The medical care services qualify- ing for payment are not limited to the treatment of tobacco-related illnesses. · Physician Services. Ten percent must be used to pay physicians for medical care services provided to specified patients who cannot afford to pay, as de- scribed abovei · Research. FiVe percent must be used to fund tobacco-related disease research. · Public Resources. Five percent must be equally divided between programs that (1) protect, restore, enhance, or maintain fish, waterfowl, and other wildlife habitat areas; and (2) improve state and local park and recreation resources. · General Purposes. The remaining 25 percent may be used for any of the specific purposes described above. The measure requires all funds to be used to supple- ment current services; not to fund existing service levels. In addition, this measure amends the California Con- stitution to provide that the appropriation of revenues from the additional taxes imposed by this measure is not subject to either the state or local appropriations limits. The measure would become effective on January 1, 1989. Fiscal Effect This measure would raise additional state revenues of approximately $300 million in 1988-89 (part year) and $600 million in 1989-90 (first full year). These revenue increases would decline gradually in subsequent years. In addition, this measure would have two offsetting effects on State General Fund and local revenues. First, the measure would increase sales tax revenues. This is because the sales tax is imposed on the total price of tobacco products, including the increased excise tax. Second, the measure would reduce revenues from the existing 10-cents-per-pack cigarette excise tax, because some consumers would reduce their purchases of tobacco products in response to the higher taxes. These revenue effects would offset each other, and there would be little or no net effect on the State General Fund or on local revenues. Administration of the surtax on cigarettes and tobacco products would increase annual costs to the State Board of Equalization by approximately $500,000 in 1988-89 and $300,000 in subsequent years. These costs would be reim- bursed out of the proceeds of the additional taxes. 82 G88 This initiative measure is submitted to the people in accordance with the Provisions of Article II, Section 8 of the Constitution. This initiative measure expressly amends the Constitution by adding a section thereto, and adds sections to the Revenue and Taxation Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. This measure shall be known and may be cited as the Tobacco Tax and Health Protection Act of 1988. SEC. 2. The people find and declare as follows: (a) Tobacco use is the single most preventable cause of death and disease in America. (b) Tobacco-related diseases create immense suffering and personal loss, and a staggering economic cost which all Californians have to pay. (c) Tobacco-related diseases are a major burden on state and local governments by requiring them to provide medical care and health services. (d) Tobacco use causes substantial environmental damage, and property damage and 'loss of life due to fire. (e) To reduce the incidence of cancer, heart, and lung disease and to reduce the economic costs of tobacco use in California, it is the intent of the people of California to increase the state tax on cigarettes and Wbacco products and do all of the following: (1) Reduce smoking and other tobacco use among children. (2) Support medical research into tobacco-related cancer, heart, and lung diseases. (3) Treat people suffering from tobacco-related diseases.' (4) In recognition of the uncompensated costs of tobacco-related illness, support treatment of patients who cannot afford to pay for services. SEC. $. Section 12 is added to Article XIII B of the Constitution, to read: SEC. 12. "Appropriations subject to limitation" of each entity of government shall not include appropriations of revenue, from the Cigarette and Tobacco Products Surtax Fund created by the Tobacco Tax and Health Protection Act of 1988. No adjustment in the appropriations limit of any entity of government shall be required pursuant to Section 3 as a result of revenue being deposited in or appropriated from the Cigarette and Tobacco Products Surtax Fund created by the Tobacco Tax and Health Protection Act of 1988. SEC. 4. Article 2 (commencing with Section 80121) is added to Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code, to read: Article 2. Cigarette and Tobacco Products Surtax 30121. For purposes of this article: (a) "Cigarettes" has the same meaning as in Section 30003, as it read on January 1, 1988. (b) "Tobacco products" includes, but is not limited to, all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any other articles or products mfzde of, or containing at least 50 percent, tobacco, but does not include cigarettes. (c) "Fund" means the Cigarette and Tobacco Products Surtax Fund created by Section 30122. 30122. (a) The Cigarette and Tobacco Products Surtax Fund is hereby created in the State Treasury. The fund shall consist of all revenues deposited therein pursuant to this article. Moneys in the fund may only be appropriated for the following purposes: (1) Tobacco-related school and community health education pro- grams. (2) Tobacco-related disease research. (3) Medical and hospital care and treatment of patients who cannot afford to pay for those services, and for whom payment will not be made through any private coverage or by any program funded in whole or in part by the federal government, (4) Programs for fire prevention; environmental conservation; pro- tection, restoration, enhancement, and maintenance offish, waterfowl, and wildlife habitat areas; and enhancement of state and local park and recreation purposes. (b) The fund consists of six separate accounts, as follows: (1) The Health Education Account, which shall only be available for Text of Proposed Law appropriation for programs for the prevention a~d reduction of tobacco use, primarily among children, through school Jnd community health education programs. (2) The Hospital Services Account, which shaH only be available for appropriation for payment to public and priVate hospitals licensed pursuant to subdivision (a) of Section 1250 of the Health and Safety Code for the treatment of hospital patients who ctlnnot afford to pay for that treatment and for whom payment for hospital services will not be made through private coverage or by any program funded in whole or in part by the federal government. (3) The Physician Services Account, which sha~l only be available for appropriation for payment to physicians for services to patients who cannot afford to pay for those services, and for whom payment for physician services will not be made through private coverage or by any program funded in whole or in part by the federal government. (4) The Research Account, which shall only be available for appro- priation for tobacco-related disease research. (5) The Public Resources Account, which shall~ only be available for appropriation in equal amounts for both of the following: (A) Programs to protect, restore, enhance, orimaintain fish, water- fowl, and wildlife habitat on an equally funded basis. (B) Programs to enhance state and local p~rk and recreation re- sources. (6) The Unallocated Account, which shall be hvailable for appropri- ation for any purpose specified in subdivision 30123. (a) In addition to the tax imposed upon the distribution of cigarettes by this chapter, there shall be imposed ~pon every distributor a tax upon the distribution of cigarettes at the rate of twelve and one-half mills ($0.0125) for each cigarette distributed. (b) There shall be imposed upon every distributor a tax upon the distribution of tobacco products, based on the Wholesale cost of these products, at a tax rate, as determined annually {by the State Board of Equalization, which is equivalent to the combined rate of tax imposed on cigarettes by subdivision (a) and the other provisions of this part. 30124. (a) With the exception of payments of refunds made pursu- ant to Article 1 (commencing with Section 303t~1) of Chapter 6, and reimbursement of the State Board of Equalization for expenses incurred in the administration and collection of the talc imposed by Section 30123, pursuant to its powers vested by this part, all moneys raised pursuant to the taxes imposed by Section 30123 ~hall be deposited into the fund as provided in subdivision (b). (b) Moneys shall be deposited in the fund according to the following formula: (1) Twenty percent shall be deposited in the Health Education Account. (2) Thirty-five percent shall be deposited in i the Hospital Services Account. (3) Ten percent shall be deposited in the Physician Services Account. (4) Five percent shall be deposited in the Besearch Account, ($) Five percent shall be deposited in the Public Besources Account. (6) Twenty-five percent shall be deposited i~ the Unallocated Ac- count. (c) Any amounts appropriated from any accoUnt specified in subdi- vision (b) which is not encumbered within the period prescribed by law shall revert to the account from which it was appropriated. 30125. Funds expended pursuant to this article shall be used only for the purposes expressed in this article and shall be used to supplement existing levels of service and not to fund existing levels of service. 30126. The annual determination required of the State Board of Equalization pursuant to subdivision (b) of Section 30123 shall be made based on the wholesale cost of tobacco products as of March 1, and shall be effective during the state's next fiscal year. 30128. This article shall take effect on January 1, 1989. 30129. The tax imposed by Sect,'on 30123 shall be imposed on every cigarette and tobacco product in the possession or under the control of every dealer and distributor on and after 12:01 a.m. on January 1, 1989, pursuant to rules and regulations promulgated by the State Board of Equalization. 30130. This article may be amended only by vdte of four~fifths of the membership of both houses of the Legislature. Ail amendments to this article must be consistent with its purposes. SEC. 6. If any section of this measure, or part thereof is for any reason held to be invalid or unconstitutional, the remaining sections shall not be affected but will remain in full foree and effect. G88 83 Ci.garette and Tobacco Tax. Benefit Fund. 99 Initiative Constitutional Amendment and Statute Argument in Favor The alarming report released May 16, 1988, by the U.S. Surgeon General COnfirmed that the ADDICTIVE DRUG, NICOTINE, FOUND IN CIGARETTES is as habit forming and addictive as cocaine hnd heroin. "We must take steps to prevent young people from beginning to smoke," the report states. "We must insure that ,every child in every school in this country is educated as to the HEALTH RISKS AND ADDICTIVE NA- TURE OF TOBACCO USE." A YES VOTE ON PROPOSITION 99 will place an additional 25-cent tax on every pack of cigarettes and guarantee strong antismoking programs in our schools. That's why the out-of-state tobacco companies are spending millions of dollars to defeat PROPOSITION 99 the Tobacco Tax. They know that with the growing number of people who kick the habit and the 320,000 people who die annually from tobacco-related diseases, THE TOBACCO COMPANIES MUST HOOK 5,000 NEW YOUNG SMOKERS EVERY DAY JUST TO KEEP CIGARETTE SALES AT THEIR PRESENT LEVELS. Tobacco companies know that passage of PROPOSITION 99 will hurt cigarette sales. They will spendwhatever it takes to get a "No" vote even if it means sacrificing the health and safety of young people. A YES VOTE FC R A 25-CENT TAX ON EVERY PACK OF CIGARETTES will also raise an additional 30 million dollars each year for medical research to help find a cure and treat- ment for cancer, emphysema, lung and heart diseases caused by smoking. A YES VOTE FC R A 25-CENT TAX ON EVERY PACK OF CIGARETrES will pay for medical care for those who cannot afford it and take some of that burden off the taxpayer. California's health care crisis is forcing some hospitals, clinics, trauma centers and emergency rooms to close. Cities and towns throughout California cannot raise the money necessary to keep them open. THE CLOSING OF HEALTH CARE FACILITIES of Proposition 99 PUTS EVERY INDIVIDUAL AND FAMILY IN JEOPARDY. A YES VOTE FOR A 25-CENT TAX ON EVERY PACK OF CIGARETTES will protect our wildlife and parklands. Throughout California fires and devastation threaten wildlife and recreational park facilities. A YES VOTE ON PROPOSI- TION 99 will authorize funding for fire Protection, restoration and enhancement of California's parks and open land. NONSMOKING CALIFORNIANS SHOULD NOT HAVE TO PAY HIGHER TAXES AND INSURANCE PREMIUMS BECAUSE SMOKING CAUSES FIRES AND DISEASE. Smok- ers should pay their fair share. A 25-cent tax on every pack of cigarettes is a small price to pay. VOTE YES ON 99 to educate children about the dangers of smoking. VOTE YES ON 99 for medical care for people who cannot afford health care. VOTE YES ON 99 for continued research into tobacco- related diseases. VOTE YES ON 99 for wildlife protection and restoration of parklands. P.S. The people who care about your health and welfare-- THE AMERICAN CANCER SOCIETY, AMERICAN LUNG ASSOCIATION, AMERICAN HEART ASSOCIATION, PHYSICIANS, DENTISTS, HOSPITALS, NURSES, EDUCA- TORS, ENVIRONMENTAL, CITIZEN AND CONSUMER GROUPS--are sponsoring this initiative and urge you to vote YES ON PROPOSITION 99. JESSE STEINFELD, M.D. Surgeon General (Ret.) NEIL C. ANDREWS, M.D. Presideng American Cancer Society, California Division PATRICIA A. SCHIFFERLE Regional Director, The Wilderness Society, California/Nevada Region Rebuttal to Argument in Favor of Proposition 99 If you want to triple a tax, invite more crime, treat many hard-working Californians unfairly, punish some of your neighbors and hand over more money to many wealthy doctors, you'll vote for Proposition 99. Read Proposition 99 carefully. You'll see what serious prob- lems it creates for Californians. Here are just five of the many reasons to oppose Proposition ~ 99: I · It would inviteiserious crime. New pressures will be put on police. Officials in 13 states recently joined in a hotline to combat the growing problem of cigarette smuggling. The California State Sheriffs Association and the California Peace OfficerslAssociation oppose Proposition 99. · It would provide a potential new cash source for street gangs and other criminals. Smugglers could avoid up to $200,000 in taxbs On a truckload of cigarettes bootlegged from another ~tate. Resulting illegal profits could finance the purchase Of drugs or guns that could be used against innocent citizens. · It would singlei out and penalize the behavior of one group of people who are breaking no laws. Is that in the American tradition of fairness? · It would unfairly burden lower-income Californians. Taxes like this take a bigger chunk of a poor family's income. That's called "regressive." Even a 1986 report of the American Hospital Association acknowledges tobacco taxes "tend to produce a regressive distribution of the cost of government programs." · It would enrich the medical industry with hundreds of millions of dollars. A 1987 study indicated one in four doctors surveyed already is a millionaire. No on taxes. No on crime. No on Proposition 99. PAUL GANN Presideng The People's Advocate VINCENT CALDERON National Chairman, Latino Peace Officers .Association WILLIAM BAKER Member of the Assembly, lSth District Vice Chairman, Ways and Means Committee 84 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Cigarette and Tobacco Tax. Benefit Fund. Initiative Constitutional Amendment and StatUte 99 Argument Against Proposition 99 Proposition 99 is a 250-percent tax increase and special interest giveaway disguised as a health initiative. It is not a smoking ban. Proposition 99 will encourage crime, discriminate against one group of Californians, penalize some lower-income families and reward its major promoters hundreds of millions of dollars. Proposition 99 would establish several historic firsts: · This ballot measure will encourage crime in California. Large tax increases on tobacco products in other states have triggered bootlegging, highjacking, vandalism and other criminal behavior. They create a financial bonanza for street gangs and organized crime. The California State Sheriffs Association and the California Peace Officers Association know the facts and oppose Proposition 99. · This ballot measure was designed to pay off many of its promoters. Most taxes benefit all citizens. But California s medical industry would pocket at least $292 million Of these projected taxes each year. And those least able to afford it would feel the sharpest impact of these new taxes. Propo- sition 99 would create an unacceptable precedent for other self-serving ballot measures spon,s,ored b,y,, special interests seeking new tax dollars for their special agendas. · This ballot measure was draf?d by one group to punish by taxation the behavior of another. Proposition 99's promot- ers would impose their values on everyone, penalizing one segment of society for its conduct. Who will be punished next? Can new taxes on beer, wine, coffee or even red meat and eggs be far behind? Proposition 99 is an excise tax. It hits one group of citizens for what they buy, not what they earn. In 1987 the Congressional Budget Office reported that excise taxes such as tobacco taxes proposed by Proposition 99 are a greater burden on lower- Rebuttal to Argument TOBACCO COMPANIES WON'T TELL YOU THE TRUTH about why they oppose Proposition 99. THE TRUTH IS they oppose increasing tobacco taxes be- cause THEY WILL LOSE .MONEY. Every other argument against Proposition 99 is a smokescreen. THE TRUTH IS CIGARETFE SALES WILL DECLINE. Fewer children will start smoking and more adults will stop. THE TRUTH IS crime is not the issue. Bootlegging from low-tax tobacco-growing states up the East Coast was a problem in the 1970s. No longer. ILLEGAL DRUG TRADE IS MORE ATrRACTIVE TO CRIMINALS AND GANGS THAN SMUG- GLING CIGARETTES. THE TRUTH IS the State Board of Eq~.ualization enforces the tobacco taxes. This is generally not a police matter. THE TRUTH IS TOBACCO COMPANIES EAGERLY SELL CIGARETFES NO MATTER HOW POOR THE BUYER. They advertise heavily to minority and low-income youth. The result--55% of Blacks die from the major smoking-related diseases, and smoking among Hispanic teens is skyrocketing. income Americans than other taxes. Tobacco taxes are more unfair than taxes on gasoline, beer or wine. Groups representing the needy, minorities, business and labor opposed last year's proposed federal excise tax increase and Congress rejected it. Similarly, a state tobacco tax increase failed to get one vote in the California Legislature last year. The 13romoters of Proposition 99 have billed it as a health research initiative. Yet, only five pennies of i~ach new tax dollar wouM go to health research--the small~st allocation in the initiative. The promoters of Proposition 99 have billed it as a health education initiative as well. The promoters say some of the new education money would be used to finance "major local and statewide media campaigns." Don't be mislad. Even the state's largest teachers organization took no position on this initiative. Earmarking Proposition 99 funds for a health education ac- count could result in a cut in the level of financial support for reading, math and other basic classroom subjects. D ' on t be fooled by trendy, noble-sounding rhetoric. Read Proposition 99 carefully. The promoters want you to penalize one group of Californians, impose an unfair tax that falls hardest on lower-income families, and put millions Of dollars into their pockets--while encouraging crime.., all atthe same time. Proposition 99 is less than meets the eye. Voters should reject. Proposition 99. PAUL GANN President, The People's Advocate VINCENT CALDERON National Chairman, Latino Peace Offwers Association RICHARD FLOYD Member of the Assembly, 53rd District Chairman, Governmental Organization Committee. Against Proposition 99 That's why antismoking education and training is so important. THE TRUTH IS IT TAKES MONEY TO DELIVER MEDI- CAL CARE. Proposition 99 provides addition~ resources to care for those in need. THE TRUTH IS $32 MILLION EVERY YEAR SUPPORTS RESEARCH ON TOBACCO-RELATED DISEASES. It may be "only pennies" to tobacco companies, but it is four times what the National Cancer Institute spent in California last year. WHOM DO YOU TRUST? The out-of-state tobacco industry after more profits? Or the American Cancer Society, American Lung Association and American Heart Association? VOTE YES ON 99. JOHN VAN DE KAMP Attorney General, State of California CAROL KAWANAMI Immediate Past President, American Lung Association RICHARD V. LOYA Coordinator, California Association oj~ School Health Educators and Health Teacher 688 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 85 -- Insurance Rates, Regulation. Initiative Statute Official Title and Summary Prepared by the Attorney General INSURANCE RATES, REGULATION. INITIATIVE. Provides minimum 20 percent reduction in certain rates for good drivers from January 1, 1988, levels. Requires companies insure any good driver in counties where company sells automobile insurance. Requires ongoing minimum 20 percent good-driver differential. Funds automobile insurance · fraud investigations, prosecutions. Provides consumers comparative automobile insurance prices. Applies laws prohibiting discrimination, price-fixing, and unfair practices to insurance companies. Requires hearing, Insurance Commissioner approval for automobile, other property/casualty, health insurance rate changes. Establishes Insurance Consumer Advocate. Increases enforcement, penalties for fraudulent health insurance sales to seniors. Cancels conflicting provisions of Propositions. J,~ ~ and 106 including attorney contingent fee limits and prohibits future laws setting attorney fees unless approved by voters~]~egislature. Authorizes insurance activities by banks. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Would increase state administrative costs by $8 million for Department of Insurance and $2 million for Department of Justice in 1988-89, varying thereafter with workload, to be paid by additional fees on the insurance industry. Would increase costs for Department of Motor Vehicles by $100,000. Would reduce state revenues from the gross premiums tax by about $20 million in first year if no other changes are made in insurance rates. Would increase revenues for Department of Insurance by over $500,000 annually from fees paid by insurance companies for fraud investigations. Analysis by the Legislative Analyst Background Various types of insurance are sold in California, includ- ing automobile, liability, fire, health and life. In 1987, insurance companies collected about $50 billion in pre- miums from the sale of insurance. In turn, they paid about $1 billion to the slate in a tax on these premiums. Motor vehicle Insurance is one of the major types of insurance purchased in the state. It accounted for about $12 billion '(24 percent) of all premiums collected during 1987. Such insurance may include protection for: · Liability and property damage (which covers claims for bodily ir_jury and property damage to others when the insured person was at fault); · Medical (which covers the insured person and others in the automobile, regardless of fault, for "excess" medical expenses, meaning those expenses not cov- ered by other insurance); · Collision (which covers collision damage to the insu- red's car regardless of the fault of the insured); · Comprehensive (which covers damage other than collision, such as fire, theft, glass breakage and van- dalism, to the insured's car); and · Uninsured and underinsured motorist (which covers claims for bodily injury and/or property damage caused by a motorist who is at fault and who has no insurance or inadequate insurance). Rate-Setting by Insurance Companies. Currently, in- surance companies set rates for various types of insur- ance, using a number of factors. For motor vehicle insurance, these factors generally include the age, sex, marital status, driving record, type of vehicle and home address of the ins/~red. The insurance companies also take into consideration other factors such as their claims experience, income and expenses. Insurance companies are not required i to tell the public what relative weight they give to these factors when setting rates. In addition, insurance companies are not subject to the state's anti- trust laws. Role of the Department of Insurance in Reviewing Rates. Currently, the Department of Insurance does not review and approve insurance rates before they take effect. Instead, the Department of Insurance can request insurance companies to justify such rates after they take effect, as part of the rate examination process or irt response to complaints from consumers. Historically, the scope and frequency of rate examinations has been limited. Current Method of Settling Claims. Currently, the party Who is "at fault" in an accident is responsible for paying compensation for both bodily injury and property damage. If a claim for damages is filed and one or more of the parties ~involved in an accident is insured, insurance companies attempt to determine who is at fault. These claims are usually settled by negotiations or by court action. After it is determined which party is at fault, the insurance company of that party pays the damages, not to exceed the limits of the insurance, policy. Attorney Fees. Attorney fees in motor vehicle acci- dent cases are usually based on a percentage of the amount the client recovers and are referred to as "con- tingency fees." The fees are fixed by a contract betweeu the attorney and client. There are no dollar limits on contingency fees in these cases. Proposal In summary, this measure: · Requires insurance companies to reduce motor vehi- cle insurance rates for "good drivers" and makes other changes related to motor vehicle insurance. · Requires the Department of Insurance to review and approve certain rates and subsequent changes to those rates for certain types of insurance. · Affirms the current at-fault system of motor vehicle liability and thereby may restrict the implementation of other systems, such as no-fault insurance. · Provides that attorney fees for all types of cases are to be negotiated by the attorney and the client, and are not to be set by law. Continued On page 128 G88 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure amends, repeals, and adds sections to the Insurance Code, adds and repeals sections of the Financial Code, adds sections to the Government Cod6, Business and Professions Code, and Civil Code; therefore, existing provisions proposed to be deleted are printed in :tr:2rcc. ut ~%'pc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Short Title This act shall be known as the "Insurance Reform and Consumer Protection Act of 1988." SECTION 2. Findings and Declarations The People of the State of California find and declare as follows: (a) Californians have the right to fair and reasonably priced insur- ance and to honest, nondiscriminatory treatment by insurance compa- nies. (b) Good drivers have been penalized by the unfair practices of insurance companies that place stereotypes ahead of the individual driver's record in determining insurance premiums and that leave good drivers unable to purchase insurance from the company of their choice. (c) The cost of automobile insurance for good drivers has risen sharply. Present rates are at least 20 percent higher than needed for adequate rates and reasonable profit. (d) Insurance is essential to the health, safety, and prosperity of every Californian and to the growth of the state's economy. (e) The insurance crisis has jeopardized our standard of living, damaged small and large businesses, drained precious resources from civic activities, charitable groups, and public services, and needlessly exposed all Californians to economic risks and uncertainties. (f) Current law has left California consumers unprotected in their dealings with powerful insurance companies. The result has been excessive rates, unfair contracts, and predatory sales practices. Too often the victims have been the most vulnerable members of our society. (g) Insurance rates are presently made by a process that is closed to the public, lacks accountability, and leaves consumers powerless. (h) The insurance industry is unjustifiably exempt from antitrust laws. Insurers are free to fix prices, divide markets among themselves, · and engage in a wide range ofanticompetitive practices that are illegal in any other business. (i) The widespread failure of insurance companies to make insurance available at reasonable prices demonstrates the need to reform and :modernize the system of insurance regulation in California and to open insurance markets to increased competition. (j) Because insurance is essential to the people of California, it is necessary and proper that state government protect its citizens from unfair insurance rates and practices. (k) It is appropriate that the cost of providing this protection to California consumers be borne completely by insurance companies and not by the general public in taxes. (l) Automobile insurance fraud is a major contributo~ to automobile insurance costs. Law enforcement agencies have inadequate resources to investigate and prosecute suspected fraudulent claims effectively. SECTION 3. Purposes of Act The people enact this act to accomplish the following purposes: (a) To promote the principle of personal responsibility, to guarantee that automobile insurance rates primarily reflect the record of the insured, and to establish the right of good drivers to purchase automo- bile insurance in the open market at fair prices. (b) To provide good drivers an immediate 20 percent rollback of automobile insurance rates. (c) To guarantee good drivers a 20 percent discount in automobile insurance. (d) To open insurance markets to increased competition and thereby to provide an abundant supply of insurance products and services at reasonable, stable prices, and to provide consumers with the informa- tion necessary to take advantage of the competitive market. (e) To create an open, public process of ratemaking that will restore accountability, integrity, and confidence in the state's ability to protect its citizens. (f) To provide an effective advocate dedicated ~to the promotion and protection of consumer interests in order to balance the historic domination of the regulatory process by the insurance industry. (g) To safeguard the integrity of the regulatory process by prevent- lng conflicts of-interest and providing an independent, impartial decisionmaker. (h) To guarantee consumers the right to pror~pt and fair compensa- tion for legitimate insurance claims and to aeter unfair insurance practices. (i) To open the books of insurance companies to vigorous public scrutiny of those aspects of their operations ~elevant to the public interest. (j) To protect seniors from unscrupulous p~acttces in the sale of health care insurance. (k) To prevent unfair discrimination in pricihg and availability of insurance. (I) To provide sufficient resources to law enforcement for the vigor- ous investigation and prosecution of fraudulen~, automobile insurance claims. SECTION 4. Fairness in Automobile Insurance Article 6 is added to Chapter 1 of Part 3 of Division 2 of the Insurance Code to read as follows: Article 6 Fairness in Private Passengbr Automobile Insurance 11629.601 Scope. The provisions of this article shall apply to any automobile liability policy, automobile physictil damage policy, and automobile collision policy, as those terms are defined in Section 660, and any combination thereof, delivered or issued for delivery in this state insuring a single individual or individuals residing in the same household, as named insured, under which the ihsured vehicles therein designated are of the following types only: (a) A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyar~ce for passengers nor rented to others; (b) Any other four-wheel motor vehicle with a load capacity of l,500 pounds or less which is not used in the occupation, profession, or business of the insured, provided, however, that this article shall not apply (i) to any policy issued under an automobile assigned risk plan, (ii) to any policy insuring more than four automobiles, or (iii) to any policy covering garage automobile sales agency, repair shop, service station, or parking place operation hazards; or (c) A motorcycle. 11629.602 Definitions. As used in this article, the following defini- tions shall apply: (1) "Automobile insurance rating plan" means the system of classi- fication by which the rate for a given vehicle isidetermined. (2) "Basic automobile insurance" means a policy providing motor vehicle liability insurance, as that term is defined in Section 16450 of the Vehicle Code, automobile physical damage insurance, and automo- bile collision insurance, or any combination thereof The commissioner may, by regulation, prescribe provisions of basic automobile insurance policies to facilitate price-comparison. (3) "Good driver" means any person who has held a valid operator's license for at least three years preceding the application for insurance and who: (a) Has not had more than one traffic violation point count in the preceding three years and not had any accidents in which he or she was principally at fault in the preceding three yearg' (b) Has not been convicted of (1) fraud or attempt to defraud involving an automobile insurance policy, (2) driving under the influence of alcohol or drugs, (3) violation oflSections 20001, 20002, 20003, 23103, 23104, 23152, or 23153 of the Vehicle !Code or for offenses of a substantially similar nature committed in California or in another jurisdiction, or (4) of theft of a motor vehicle; and (c) Whose insured vehicle substantially complies with the require- ments of Division 12 of the Vehicle Code (coramencing with Section 24000). 11629.603 Right of Good Drivers to InsuranCe. (a') Every insurer shall offer basic automobile insurance on any vehicle for which a good driver is the principal operator in any county in which the insurer accepts applications for automobile insurance..: (b) Every insurer shall file with the department, in such form and using such media as the commissioner may by rbgulation prescribe, its rates for basic automobile insurance. Such rates may vary according to classifications contained in an approved automobile insurance rating plan, but the insurer must provide a rate for evbry good driver in the county. C-bntinued on page 130 G88 ' 87 100 Insurance Rates, Regulation. Initiative Statute Argument in Favor of Proposition 100 This is the year for insurance reform. Confused about Which of the five propositions to support? Don't be confused. PROPOSITION 100 GUARANTEES REAL, LONG-TERM REFORM AND RATE REDUCTION. Two initiatives give reductions to drunk drivers! Three initiatives were written by the insurance companies! PROPOSITION 100 WAS WRITTEN BY CONSUMERS. Proposition 100 is supported by MADD, Consumer Federa- tion of America, Insurance Consumer Action Network, National Insurance Consumer Organization, Congress of California Se- niors and Common Cause. And only one initiative--Proposition 100--will make sure that good drivers, NOT EECKLESS and DRUNK DRIVERS, get the reductions they deserve. ONLY PROPOSITION 100: · Guarantees "good drivers" an immediate 20% reduction and future 20% discounts in insurance rates. Premiums will be based on your driving record: How you'drive is more important than where you live, or on which side of the street. : · Eliminates theunique special-interest exemption from the anti-trust law fi?r insurance companies. They will be gov- erned by the same anti-trust laws that now apply to other major industrieS: Competition will increase by permitting banks to sell inSurance. · Cracks down o{, unscrupulous practices in the s. ale and advertising of senior health care (medigap) insurance. California seniors will no longer be prey to abusive and fraudulent sales tactics. · Mandates insurance companies prOvide law enforcement with the funds necessary to investigate and prosecute fraudulent auto claims. Rather than deal with the problem, insurance companies are content to pass these Costs on to consumers. Provosition 100 will force them to help in this crackdown. · Protects consumers, schools, local governments, small busi- nesses, child care centers and nonprofit organizations against unjustified rate increases in auto, health, home- owner, liability and other types of insurance. · Unlike the other insurance initiatives, Proposition 100 will aSSure that drunk and reckless drivers will not be allowed to escape responsibility for the tragedies they caUse. It preserves, unchanged, the rights of victims and their fam- ilies to contract freely with the attorney of their choice to ensure that they are fully compensated for their injuries. It also protects a victim's right to full reimbursement for all necessary treatment by all licensed doctors. PROPOSITION 100 is overdue! Look at the facts: · Insurance companies in California have been more profit- able than insurance companies throughout the entire nation. · Over the last two years, California auto insurance rates have skyrocketed over 40%! And last year, the insurance indus- try made a record net profit of over $13.7 billion natiOn- wide. In 1986, they made over $12.7' billion and fourteen of the top insurance companies paid absolutely no federal inCome tax--not one penny! · Insurance companies are now free to charge whatever the market will bear. It's time to change the rules. Several "insurance reform" initiatives appear on your ballot but only Proposition 100 GUARANTEES REAL REFORM of the industry--without giving premium reductions to drunk or reckless drivers! You have a real choice. Don't let DRUNK DRIVERS or INSURANCE COMPANIES OFF THE HOOK! Cut your rates by 20%--vote YES on Proposition 100! PATRICIA RAMIREZ State Administrator, Mothers Against Drunk Driving (MADD) CARL ]ONES Director, Congress of California Seniors JOHN VAN DE KAMP Attorney General of California Rebuttal to Argument in Favor of Proposition 100 DONT BE FOOLE,,D BY PROP 100. IT'S A LAWYER INITIATIVE. PROP 100 s REAL PURPOSE IS TO PROTECT ATFORNEY INCOME. VOTE NO ON PROP 100. Trial attorneys are pushing PROP 100 to block any meaning- ful reform of our failing auto insurance system--a system that forces hundreds of thousands of minor accidents to be litigated. UNNECESSARY LEGAL COSTS ARE DRIVING UP THE COST OF INSURANCE! PROP 100, written and primarily funded by lawyers, is a special-interest initiative designed to protect the substantial income trial lawyers make from litigation. The measure prohibits regulation of attorney contingency fees at this election--which routinely account for 33% to 40% of a victim's award--and bars voters from fundamentally reform- ing our auto insurance system at this election. The number of auto accident-related lawsuits filed in Califor- nia has increased l~v a staggering 81% in the past five years, according to the Judicial Council of California. PROP 100 DOES iNOT CUT COSTS OUT OF THE SYSTEM, SO ITS PROMISE OF LONG-TERM RATE REDUCTION IS FALSE! PROP 100 will raise rates for two-thirds of California drivers by 22%. According to a study by the State Department of Insurance of a proposal similar to Proposition 100, rates of two-thirds of drivers will increase by effectively eliminating rating based on the safety record of your neighborhood and forces suburban and rural drivers to subsidize motorists in high-risk areas. ' Finally, this measure allows the troubled banking industry to risk your assets by moving into the insurance business. Big banks are the second largest backer of PROP 100. DON'T LET THE TRIAL LAWYERS TRICK YOU. VOTE NO ON PROP 100. HENRY J. VOSS Presldeng California Farm Federation ED DAVIS State Senator, 19th District Vice Chair, Senate Judiciary Committee BETFY SMITH Former Chair, California Democratic Party Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 88 G88 Insurance Rates, Regulation. Initiative'Statute 100 Argument Against Proposition 100 NO ON PROP 100. DON'T BE FOOLED BY THE LAWYERS' INITIATIVE. iPROP 100's real purpose is to protect trial lawyer income. PROP 100 will not reform California's auto insurance system and it cannot provide long-term rate reductions. PROP 100, the trial lawyer initiative, would: · Cancels provisions in other initiatives on this ballot regu- lating attorneys fees andprohibits any future regulation of such fees unless approvedby the voters or the Legislature. · Raise insurance premium rates for the majority of Califor- nia drivers in the long run by effectively forcing insurers to ignore the driving safety record of your neighborhood, and forcing you to subsidize drivers that have the highest insurance losses. A State Department of Insurance study recently predicted that abolishing such rating factors will raise rates for two-thirds of the state's drivers by an average of 22%. · Bar voters from adopting a no-fault auto insurance system at this election that would provide more money to injured victims more quickly and efficiently than does the current system--and cut out the need for attorneys in 'many cases. · Establish a costly government bureaucracy that does noth- ing to make insurance more affordable. · Allow the financially troubled banking industry to endan- ger your savings by selling insurance. · Give enormous new authority to a state "insurance czar." The trial lawyers' initiative does virtually nothing to attack the underlying costs driving up auto insurance rates. Instead, it would create the same type of bloated bureaucracy that has been disastroUs in states like New Jersey. According to the Legislative Analyst, the regulatory bureauc- racy mandated in PROP 100 will inflate the Department of Rebuttal to Argument Proposition 100 gives good drivers a 20% discount, requires premiums be based on YOUR driving record and repeals the insurance industry's unfair exemption from antitrust laws. Written by leaders of the insurance reform struggle in California--Insurance Consumer Action Network, Attorney General John Van de Kamp and Assemblyman Lloyd Connelly --Proposition 100 is supported by the most diverse coalition of any insurance reform measure on your ballot, including: CALIFORNIA MOTHERS AGAINST DRUNK DRIVING (MADD) Congress of California Seniors Common Cause LEAGUE OF CALIFORNIA CITIES Consumer Federation of America National Insurance Consumer Organization And, for the first time in California history, consumer orga- nizations have been joined by financially equipped allies, like bankers and lawyers, who provide the resources necessary to fight the insurance industry's $30 million campaign war chest! Proposition 100 means genuine insurance reform: · GUARANTEES an immediate 20% reduction to 'all good drivers. Insurance's budget by 33% and add many additional bureau- crats to its staff. , California trial lawyers tell you that PROP 100 will give you rate reductions without reducing the cost of providing auto insurance. DON'T BE FOOLED BY THE TRIAL LAWYERS' EMPTY PROMISES. PROP lO0's rate reduction is illusory andltemporary. Without cost-cutting measures to stabilize rates over the long term, there can be no true reform of California's auto insurance system. The trial lawyers' PROP 100 will only add tim~, expense--and the need for more lawyers--to the auto insurance system in Cali- fornia. The only way to bring about long-term ~tabilization of auto insurance rates is to cut the underlying dosts driving up the price of insurance: the cost of insuring against uninsured motorists, rampant fraud, and, most importantly, soaring legal costs in auto accident cases. ' PROP 100 DOES NOT REDUCE THE COST OF' PROVID- ING INSURANCE. PROP 100 PROMOTES THE PRIVATE AGENDA OF TRIAL ATFORNEYS AT THE EXPENSE OF CALIFORNIA DRIV- ERS AND TAXPAYERS. DON'T BE FOOLED. WE URGE YOU TO VOTE NO ON PROP 100. HENRY J. VOSS Presideng California Farm Federatioh ED DAVIS State Senator, 19th District Vice Chair, Senate ]udiciary Commlt~ee BETYY SMITH Former Chair, California Democrati~ Party Against Proposition 100 · Ensures YOUR auto insurance rates arb primarily based on YOUR driving record. · Eliminates the insurance industry's special interest exemp- tion from antitrust laws. Insurance i companies will be subject to the same laws that govern every other major industry. · Protects seniors from health insurance abuses: · Holds drunk and reckless drivers accountable for their actions. That's why CALIFORNIA M DTHERS AGAINST DRUNK DRIVING (MADD) SUPPORTS Proposition 100 and OPPOSES Propositions 101 and 104. To guarantee all the rights, reforms and protections provided in Proposition 100, it must receive more vo~es than Propositions 101, 103, 104 and 106. Vote for real insurance reform. YES on PROPOSITION 100! STEVEN MILLER Presideng Insurance Consumer Actiqn Network (ICAN) J. ROBERT HUNTER, JR. Presideng National Insurance Consumer Organization (NICO) STEPHEN BROBECK Executive Director, Consumer FederatiOn of America (CFA) G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any iofficial agency 89 Automobile Accident Claims and Insurance Rates. Initiative Statute Official Title and Summary Prepared by the Attorney General AUTOMOBILE ACCIDENT CLAIMS AND INSURANCE RATES. INITIATIVE STATUTE. Reduces bodily injury, uninsured motorist rates to 50 percent of October 31, 1988, or October 31, 1987, level, whichever is lower, adjusted for medical inflation. Limits motor vehicle accident recovery for noneconomic losses such as pain and suffering to 25 percent of economic losses, as defined. Prohibits attorney contingent fees greater than 25 percent of economic losses, as defined. Limitat~'ons not applicable to survival, wrongful death actions or actions involving serious and permanent injuries and/or disfigurement. Provisions expire December 31, 1992. Summary of Legislative Analyst's estimate of net state and local government impact: Would increase state administrative, costs by about $2 million in 1988-89, varying thereafter with workload, to be paid by additional fees on the insurance industry. State and affected local governments would have unknown savings from reduced insurance rates and loss limitations. Possible reduction in court costs and court revenues cottld result from limitation on claims for noneconomic damages. Would reduce state revenues from the gross premium tax by about $50 million a year for next four years if no other changes are made in insurance rates. Background Various types of insurance are sold in California, includ- ing automobile, liability, fire, health and life. In 1987, insurance compast'es collected about $50 billion in pre- miums from the sale of insurance. In turn, they paid about $1 billion to the state in a tax on these premiums. Motor vehicle insurance is one of the major types of insurance purchased in the state. It accounted for about $12 billion (24 percent) of all premiums collected during 1987. Such insurance may include protection for: · Liability and property damage (which covers claims for bodily injury and property damage to others when the insured person was at fault); · Medical (which covers the insured person and others in the automobile, regardless of fault, for "excess" medical expenses, meaning those expenses not cov- ered by other iinsurance); · Collision (which covers collision damage to the in- sured's car regardless of the fault of the insured); · Comprehensive (which covers damage other than collision, such as fire, theft, glass breakage and van- dalism, to the insured's car); and · Uninsured ant underinsured motorist (which covers claims for bodily injury and/or property damage caused by a motorist who is at fault and who has no insurance or ~adequate insurance). Rate Setting by insurance Companies. Currently, in- surance companies set rates for various types of insur- an'ce, using a number of factors. For motor vehicle insurance, these factors generally include the age, sex, marital status, driving record, type of vehicle and home address of the insured. The insurance companies also take into consideration other factors such as their claims experience, income and expenses. Insurance companies are not required to tell the public what relative weight they give to these factors when setting rates. In addition, insurance companies are not subject to the state's anti- trust laws. Role of the DePartment of Insurance in Reviewing · Rates. Currently,lthe Department of Insurance does not review and approve insurance rates before they take effect. Instead, thei Department of Insurance can request 9O ~ Analysis by the Legislative Analyst insurance companies to justify such rates after they take effect, as part of the rate examination process or in response to complaints from consumers. Historically, the scope and frequency of rate examinations has been limited. Current Method of Settling Claims.~ Currently, the party who is "at fault" in an accident is responsible for paying compensation for both bodily injury and property damage. If a claim for damages is filed and one or more of the parties involved in an accident is insured, insurance companies attempt to determine who is at fault. These claims are usually settled by negotiations or by court action. After it is determined which party is at fault, the insurance company of that party pays the damages, not to exceed the limits of the insurance policy. Attorney Fees. Attorney fees in motor vehicle acci- dent cases are usually based on a percentage of the amount the client recovers and are referred to as "con- tingency fees." The fees are fixed by a contract between the attorney and client. There are no dollar limits on contingency fees in these cases. Proposal In summary, this measure: · Requires insurance companies to reduce the bodily injury liability and uninsured motorist portions of motor vehicle insurance rates and makes other changes related to motor vehicle insurance, · Limits claims for noneconomie losses (such as "pain and suffering") and attorney contingency fees, and · Expires at the end of December 1992. Rate Reduetions This measure requires insurance companies to reduce their rates for the bodily injury liability and uninsured motorist components of motor vehicle insurance policies. These components account for roughly 40 percent of total motor vehicle insurance premiums. Specifically, the mea- sure requires that rates for policies issued on or after November 9, 1988, be reduced to the lower of the following: Continued on page 135 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section $ of the Constitution. This initiative measure amends and adds sections to the Business and Professions Code, adds sections to the Civil Code, Code of Civil Procedure, and Insurance Code; therefore, existing provisions proposed to be deleted are printed in :~kcc~ut typc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. (a) We the people of the State of California hereby find and declare that insurance coverage of liability for bodily injury arising out of the use of motor vehicles has become unaffordable to many individuals and businesses. (b) We the people also find and declare that the high cost of this coverage is the result of the bodily injury reparations system in effect today. (c) In order to address these concerns, we the people further find and declare that it is necessary and proper to (1) reform the reparations system as set forth in the statutes of this state and as developed in numerous court decisions, and (2) as a direct result, reduce by 50 percent premiums for coverage of liability for bodily injury provided by policies covering liability arising out of the use of any motor vehicle. (d) With these goals in mind, we the people do hereby enact this initiative measure. SEC. 2. Section 6146.6 is added to the Business and Professions Code, to read: 6146.6. (a) For the purposes of this section: (1) "Bodily injury" means injury to a person which arises out of the use of a motor vehicle as a motor vehicle and any sickness or disease that results from the injury. Bodily injury does not mean injury occurring during the use of a motor vehicle but not arising out of that use. (2) "Economic losses" means objectively verifiable past and future monetary losses not compensable from other sources, including medical expenses, loss of earnings, including future loss, burial costs, loss of business, loss of employment opportunity, and costs of obtaining necessary substitute domestic services, excluding services rendered by relatives, members of the injured person's household, or others under age. 16. No other losses or damages shall be considered economic losses. (3) "Motor vehicle" means any vehicle designed primarily for use on streets and highways and subject to motor vehicle registration under the laws of California. (4) "Person" means a natural person and not a corporation, partner- ship, association, or trust. (5) "Use of a motor vehicle" means operating, maintaining, loading, or unloading a motor vehicle. (b) An attorney shall not contract for or collect a contingency fee for representing any person seeking damages in connection with a claim for bodily injury, which is not both serious and permanent as defined in subdivision (b) of Section 3333.6 of the Civil Code, or which does not involve serious and irreparable permanent disfigurement, presented to an insurer providing coverage of liability for bodily injury arising out of the use of a motor vehicle, in excess of 25 percent of the economic losses recovered. (c) This section does not apply to either surVival actions provided for in Section 573 Of the Probate Code or wrongful death actions. (d) This section only applies to causes of action arising from accidents that occur on and after November 9, 1988~ and on or before December 31, 1992. SEC. 3. Section 6147 of the Business and Professions Code is' amended to read: 6147. (a) An attorney who contracts to represent a plaintiff on a contingency fee basis shall, at the time the contract is entered into, provide a duplicate copy of the contract, signed by both the attorney and the plaintiff, or his guardian or representative, to the plaintiff, or to the plaintiff's guardian or representative. The contract shall be in writing and shall include, but is not limited to, all of the following: (1) A statement of the contingency fee rate which the client and attorney have agreed upon. (2) A statement as to how disbursements and coSts incurred in connection with the prosecution or settlement of the claim will affect the contingency fee and the client's recovery. (3) A statement as to what extent, ff any, the plaintiff could be required to pay any compensation to the attorney for related matters that arise out of their relationship not covered by their contingency fee contract. This may include any amounts collected for the plaintiffby the attorney. (4) Unless the claim is subject to the provislons of Section 6146 or 6146.6, a statement that the fee is not set byI law but is negotiable between attorney and client. (5) If the claim is subject to the provisions of Section 6146 or 6146.6, a statement that the rates set forth in that section are the maximum limits for the contingency fee agreement, and that the attorney and client may negotiate a lower rate. (b) Failure to comply with any provision of this section renders the agreement voidable at the Option of the plainti.fft and the attorney shall thereupon be entitled to collect a reasonable fee. (c) This section shall not apply to contingendy fee contracts for the recovery of workers' compensation benefits. 1 SEC. 4. Section 3333.6 is added to the Civil Code, to read: 3333.6. (a) For the purposes of this section:, ] (1) "Bodily injury" means injury to a person iwhich arises out of the use of a motor vehicle as a motor vehicle and any'sickness or disease that results from the injury. Bodily injury does not mean injury occurring during the use of a motor vehicle but not arising out of that use. (2) "Economic losses" means objectively verifiable monetary past and future losses not compensable from other sources, including medical expenses, loss of earnings, including fatture loss, burial costs, loss of business, loss of employment opportunity~ and costs of obtaining necessary substitute domestic services, excluding services rendered by relatives, members of the injured person's household, or others under age 16. No other losses or damages shall be considered economic losses. (3) "Motor vehicle" means any vehicle designed primarily for use on streets and highways and subject to motor vehicle registration under the laws of California. ~ I (4) "Noneconomic losses" means all losses eicept those specifically defined as "economic losses" in paragraph (2), including, but not limited to, subjective, nonmonetary losses such as pain and suffering, inconvenience, mental suffering, emotional distress, loss of society, loss of companionship, loss of consortium, injury to ¢eputation, humiliation, or any combination of the above.' , (5) "Person" means a natural person and not ~ corporation, partner- ship, association, or trust. I (6) "Use of a motor vehicle" means operating~ maintaining, loading, or unloading a motor vehicle,il (b) No person or entity may recover noneconbmic losses in excess of 25 percent of economic losses for bodily injury resulting from or caused by an acc,dent arising out of the use of a motor v¢h~cle unless the person seeking recovery, as a direct result of the accident, has suffered an injury resulting in either of the following: (1) Serious and irreparable permanent disfigurement. (2) Any injury which is both serious and Parmanent. An injury is "serious"for the purposes of this paragraph only if it substantially prohibits the injured person from resuming substantially all of his or her normal activities. An injury is "permanent" only if its effects cannot be eliminated by further time for recovery or by further medical treatment and care, including surgery, or both. (c) This section does not apply to either survival actions provided for under Section 573 of the Probate Code or wrongful death actions. (d) This section only applies to causes of action arising from accidents that occur on or after November 9, 1988, and on or before December 31, 1992. SEC. 5. Section 425.14 is added to the Code of Civil Procedure, to read: 425.14. (a) For purposes of this section: (1) "Bodily injury" means injury to a person which arises out of tbe use of a motor vehicle as a motor vehicle and any sickness, or disease that results from the injury. Bodily injury does not mean injury occurring during the use of a motor vehicle but not arising out of that use. (2) "Economic losses" means objectively verifiable monetary past and future losses not compqnsable from other sources, including medical expenses, loss of earnings, including fltture loss, burial costs, loss of business, loss of employment opportunity, and costs of obtaining necessary substitute domestic services, excluding services rendered by relatives, members of the injured person's household, or others under age 16. No other losses or damages shall be considered economic losses. (3) "Motor vehicle" means any vehicle designed primarily for use on streets and highways and subject to motor vehicle registration under the laws of California. (4) "Noneconomic losses" means all losses except those specifically defined as "economic losses" in paragraph (2), including, but not li~nited to, subjective, nonmonetary losses, such las pain and suffering, Continued on page 136 91 101 Automobile Accident Claims and Insurance Initiative Statute Arghment in Favor Only one auto insurance initiative on this ballot can dramatically reduce your premiums and provide for legal reforms which end trial lawyer-promoted lawsuits and fraudulent insurance claims... PROPOSITION 101. · Your YES vote on Proposition 101 mandates an insurance premium reduction AVERAGING ONE-THIRD for alt California motorists and limits future increases to the cost of living. · Your YES vote on Proposition 101 means that insurance will be affordable and families with teenage drivers and uninsured motor- ists will now be ab'e to purchase insurance coverage. · Your YES vote on Proposition 101 stops the rip-off which occurs when someone yel~s "whiplash" and sues for megabucks. · Your YES vote on Proposition 101 stops those greedy individuals who have institutionalized the slogan, "Hit me--I need the money." · Your YES vote on Proposition 101 ensures that all out-of-pocket expenses for medical bills, lost wages (including future loss), lost business opportuni.T, etc. are paid in full. Proposition 101 is easy to understand and it is also fair! It mandates a 50% cut in bodily injury and uninsured motorist liability insurance premiums. This means that you will receive a reduction in your premium between 22% and 45% depending on your driving record, type of vehicle driven and the insurance coverage you carry. Average reductions :or California consumers will be about 35%. Every registered personal and commercial on-road vehicle in the state will receive this reduction. This significant cut in premioms occurs because, when a "fender bender/minor injury" accident happens, Proposition 101 limits claims for noneconomic loss (pain and suffering) to 25% above the real economic loss. According to the California Attorney General, Proposi- tion 101's limitations ARE NOT in effect when an accident involves serious and permanent injuries or survivors' rights.when a death occurs. Proposition 101 also reduces the incentive for those lawyers special- · Rates, of Proposition 101 izing in "ambulance chasing" from filing meaningless lawsuits by limiting their contingency fees to 25% in those cases. California consumers can no longer afford to be at the mercy of the "Devil's DUo"--unscrupulous trial lawyers and those insurance compa- nies which prey upon California motorists with high premium increases! Proposition 101 provides significant rate reduction while protecting the fights of honest California motorists. While the average California consumer will receive an approximate 1/3 cut in auto insurance premiums from Proposition 101, those motorists driving cars with little or no comprehensive or collision insurance may receive rate reductions of almost 50%. This significant reduction is especially helpful to seniors and people driving older ears. As an added benefit, the reduction Proposition 101 provides is applicable to local and state governments and school districts. This means more funds will be available for programs instead of being paid out for insurance. FOUR INITIATIVES ON AUTO INSURANCE APPEAR ON THIS BALLOT. NO MATI~ER HOW YOU VOTE ON THE OTHER INITI- ATIVES, BE SURE TO VOTE YES ON THE ONE INITIATIVE WHICH WILL CUT YOUR INSURANCE PREMIUM 1/3--PROPO- SITION 101. VOTE YES ON PROPOSITION 101. Thank you. RICHARD POLANCO Member of the Assembly, 55th District Chair, Consumers for Lower Auto Insurance Rates JOHN SEYMOUR State Senator, 35th District Orange County MIKE ROOS Member of the Assembly, 46th District Assembly Speaker pro Tern Los Angeles LOOK WHO'S T~LKING: Proposition 101 was drafted and is supported by insuranc~ companies. Official records of the California Secretary of State show that as of July more than $1.7 million, over 92% of Proposition 101's bucget, was contributed by one insurance company and its holding company. That's why Proposition 101 is great for insurance companies a_~d bad for consumers. If you are hurt in an auto accident Proposition 101 requires you to use all: · your sick leave i · your vacation time · your health insurance · your workers' compensation · your stat4 disabilit~ before you get a dime £rom the insurance company of the person who hit you! : Proposition 101 will Cost taxpayers money. Taxpayers, not the at-fault driver's insurance comlbany, will pay the medical costs when a Medi-Cal recipient is injured inl an auto accident. Taxpayers pick up the bill; Rebuttal to Argument in Favor of Proposition 101 insurance companies get the extra profits. Drivers with perfect records are treated no better than drunk and reckless drivers. Because general damages would be reduced ff you or a family member were injured by a drunk driver, the amount you collect from the driver's insurance would be reduced by as much as 66%. And you may still have, to hire a lawyer and go to court to collect. Proposition 101 s promised premium reduction applies only to two portions of your premium. Insurance companies can raise the rest of your premium as much as they want. l'roposition 101 is a windfall for auto insurance companies; it's not real reform. VOTE NO ON PROPOSITION 101. JOHN VAN DE KAMP Attorney General, State of California GLORIA MOLINA Los Angeles City Councilwoman EDWARD V. ROBERTS Former Director, California State Department of Rehabilitation President, World Institute on Disability 92 Arguments prated on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Automobile Accident Claims and Insurance Rates. Initiative Statute Argument Against Proposition 101 CONSUMERS UNION, THE NON-PROFIT PUBLISHER OF CON- SUMER REPORTS MAGAZINE, urges you to vote NO ON PROPOSI- TION 101. We believe it isn't good for consumers. PROPOSITION 101 DOESN'I~ DELIVER THE LOWER RATES YOU DESERVE. When an insurance company says it will lower your rates you have to ask "How?" Your total cost could be higher if Proposition 101 passes. READ THE FINE PRINT. PROPOSITION 101 DOESN'T REALLY GUARANTEE A RATE REDUCTION OF 50%. The promised reduction in premiums applies onltt to the bodily injury and uninsured motorist portions of ttour liability coverage. This might amount to a 17% overall reduction in your premiums depending on'how much coverage you carry. However, there's nothing in the plan to prevent insurance companies from raising the premiums for other portions of your policy. Insurance companies can increase your premi- ums for property damage, collision, and/or comprehensive coverage as much as they want without restrictions. PROPOSITION 101 DOESNT STOP AUTOMOBILE INSURANCE RATE INCREASES. The insurance companies drafted this initiative to allow inere'ased bodily injury premiums every year after the first year. The other portions of your premiums can go up even sooner. If this measure passes, the amount you receive after being injured in a typical automObile accident could be reduced by 2/3 or more. When 101 someone hits your car, only part of the costs and injury you suffer will be paid under Proposition 101. This will amount to approximately 1/3 of today's typical auto accident claim. And you stil may have to hire and pay an attorney to get your claim paid. PROPOSITION 101 LETS INSURANCE cOMPANIES OFF THE HOOK FOR MOST OF THE CLAIMS THEY NOW PAY. If you are in an accident and the other driver is at fault, you may have to use up ttour health insurance, ttour sick leave, and Your disability insurance before you can collect one penny from the insurance comPany for your medical costs or lost wages, if you are eligible, you may have to collect from Medi-Cal and Workeri Compensation before the other driver's insurance company pays you a cent. This means that the costs of health insurance will increase drastically. While auto insurance companies pay less, our taxes and health care costs will go up. This initiative affects more than just fender benders. PROPOSITION 101 DOESN'T REFORM THE INSURANCE SYS- TEM AND IT DOESN'T GIVE YOU TRUE RATE REDUCTIONS. IT DOES PROTECT AUTO INSURANCE COMPANY PROFITS AT YOUR EXPENSE. SAY NO TO PROPOSITION 101. HARRY M. SNYDER Director, West Coast Regional Offic6 Consumers Union of U.S., Inc., Publishers, Consumer Reports Maghzine RebuttalS to Argument Against Proposition 101 HERE THEY GO AGAIN... Attorney Harry Snyder, hiding behind the guise of a consumer organization, does not understand Proposition 101. · Proposition 101 mandates by law a 50% reduction in bodily injury liability and uninsured motorists insurance. Most Californians receive an average rate reduction of one-third. Drivers with older cars may get almost one-half. Drivers with newer, .luxury cars, about one-fourth. · Proposition 101 stops fraud. The Insurance Crime Prevention Institute estimates that 30% to 40% of all accident claims in southern California may involve some elements of fraud. · Proposition 101 only limits pain and suffering awards in minor accidents. Medical bills, lost wages, auto repair, etc. are paid in full in any accident. Individuals with serious and permanent injuries are entitled to the same pain and suffering damages they receive today. · Proposition 101 provides an arbitration procedure to determine the seriousness of the injury. A neutral physician determines if any injury is serious and perma- nent. Proposition 101 lowers auto insurance fates and protects consumers rights! Vote YES on 101. RICHARD POLANCO Member of the Assembly, 5$th District Chair, Consumers for Lower Auto Insurance Rates Proposition 101 means that every county, city, and school district in California will have millions more dollars for m~aningful programs--or rebates to taxpayers--and less money going into insurance reserves. I strongly urge everyone concerned about local government and schools to vote for Proposition 101. DON ROTH Orange County Supervisor Seniors should support Proposition 101 because we will receive the greatest benefit from it. 1 Because we generally have older cars we will receive rate reductions of almost 50%. Vote YES on 101. MAY SHOTWELL Seniors Advocacy Services G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 93 Reporting Exposure to AIDS Virus. i Initiative Statute Official Title and Summary Prepared by the Attorney General REPORTING EXPOSURE TO AIDS VIRUS. INITIATIVE. Requires doctors, blood banks, and others, to report patients and blood donors, whom they reasonably believe to have been infected by or tested positive for AIDS virus, to local health officers. Restricts confidential testing. Requires reporting by persons infected or tested positive~ Directs local health officers to notify reported person's spouse, sexual partners, and others possibly exposed. Repeals · prohibition on use of AIDS virus tests for employment or insurability. Creates felony for persons with knowledge of infection or positive test to donate blood. Modifies fines and penalties for unauthorized disclosure of AIDS virus test results. Summary of Legislative Analyst's estimate of net state and local gox/ernment fiscal impact: Fiscal impact is unknown, possibly ~ens or hundreds of millions of dollars depending on costs of measures "reasonably necessary" to prevent spread of d_isease, number and types of cases investigated, testing criminal offenders, and public health care for those denied insurance or employment. Analysis by the Legislative Analyst Background Acquired immune deficiency syndrome (AIDS) is a disease that impairs the body's normal ability to resist serious diseases and infections. The disease is caused by a virus---the human immunodeficiency virus (HIV)--that is spread through i~timate sexual contact or exposure to the blood of an infected person. At the time this analysis was prepared (June 1988), there was no readily available method to detect whether a person actually has HIV. An HIV antibody test does exist to detect whether a person has ever been infected with HIV and, as a result, has developed antibod_'es to it. A person infected with .HIV may or may not develop AIDS after a period of years. There is no known cure for AIDS, which is ultimately fatal. AIDS became a recognized disease in 1981. Since then about 14,000 persons in California have been diagnosed as having the diseasei and about 8,000 of them have died. The State Department of Health Services estimates that possibly 500,000 parsons in California are infected with HIV. The department estimates that by 1991 a total of approximately 50,000 AIDS cases will have been identi- fied in the 10 year's since AIDS became a recognized disease. Health Officers'i Authority to Prevent the Spread of Communicable DiSeases. State law gives health officers broad authorityto fake actions they believe are necessary to protect the public health and to prevent the Spread of communicable diseases such as tuberculosis and various venereal diseases, among others. The kind of action taken by health officers yaries, depending on how easily the disease is spread from one person to another. For exam- ple, health officers imay isolate or quarantine individuals infected with a communicable disease, or exclude them from certain jobs, if the health officer believes it is necessary in order to protect the health of others. Health officers may also investigate cases of communicable dis- eases in order to contact individuals who may have been exposed to a communicable disease. If a health officer carries out such an investigation, the law requires the infected person's identity to be kept confidential. According to theI State Department of Health Services, persons who have LIDS and persons who are capable of spreading the HIV are subject to existing communicable disease laws. However, no health officer has eyer taken any official action to require persons infected with HIV to be isolated or quarantined, because there is no medical' evidence which demonstrates that HIV is spread by casual contact with an infected person. Many health officers, however, have initiated some limited investiga- tion of cases. Current Testing and Confidentiality Requirements Re- lated to AIDS and HIV Infection. In addition to the laws relating specifically to communicable diseases, there are also laws relating to AIDS and HIV infection. These laws prohibit involuntary HIV antibody testing and re- quire that voluntary test results be kept confidential. These laws also prohibit the use of the HIV antibody test for purposes of determining insurability or employability. With limited exceptions, a person may not be tested for antibodies to HIV without his or her written consent. With few exceptions, no one, except physicians who have been authorized in writing by the person tested, may disclose the results of an HIV antibody test. Anyone making an unauthorized disclosure may be subject to civil penalties or, if the disclosure causes harm to the person tested, the person making the disclosure may be charged with a misdemeanor and punished by imprisonment or a fine, or both. In addition, no one can be compelled to identify an individual who has been tested for HIV antibodies in any criminal or other governmental pro- ceeding, nor can public health records of HIV antibody test results be used in those proceedings. Current Reporting Requirements for Persons with AIDS and HIV Infection. Current law requires health care providers to report the names of persons with AIDS to local health officers. There are no requirements for reporting the names of persons who have tested positive for HIV infection. However, counties must report to the state the number of cases in which blood tests performed at certain facilities reveal that a person has been infected with HIV. Existing Laws GoVerning Investigation of Persons with AIDS and HIV Infection. Although health officers have the authority under existing law to investigate cases of AIDS and HIV infection to identify the sources of infec- Continued on page 137 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure amends, adds and repeals sections of the Health and Safety Code, and adds sections to the Penal Code; therefore, existing sections proposed to be deleted are printed in ;,'-..2:cc;.'-t ~c and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. This initiative and Chapter 1.11 (commencing with Section 199.20) of Part 1 of Division 1 of the Health and Safety Code shall be known and may be cited as the California Physicians for Logical AIDS Response Public Health Act of 1988. SEC. 2. The people of the State of California find and declare all of the following: (a) The Surgeon General of the United States, at the request of the President, has reported to the American public that the acquired immune deficiency syndrome (AIDS) epidemic is a major public health issue, and its impact on our society is presently, and will continue to become, increasingly devastating. (b) The National Academy of Sciences lastitute of Medicine has also reported to the American public that if the spread of the virus is not checked the present epidemic will become a worm wide catastrophe. (c) AIDS is a fatal, infectious, and communicable disease, dangerous to the public health. (d) The provisions of this initiative are necessary for the preservation of public health. SEC. 3. Section 199.19 is added to Chapter 1.11 (commencing with Section 199.20) of Part 1 of Division 1 of the Health and Safety Code, to read: 199.19. As used in this chapter, "AIDS" means acquired immune deficiency syndrome. For purposes of this chapter, the term "tested positive" refers only to results of a generally acceptable confirmatory test or tests and not to any screening test unless the test is also considered to be a generally acceptable confirmatory test. SEC. 4. Section 199.20 of the Health and Safety Code is amended to read: 199.20. To protect the privacy of individuals who are the subject of blood testing for antibodies ~e tone evidence of infection by any probable causative agent of c. cqulrcd L-7.rz..ur.c deficiency syndrome ~ ..... ~ AIDS the following shall apply: Except as provided in this chapter, Section 1603.1, or Section 1603.3, es .......... by ~s~ ~1~ ef t-he ~ ..~ ............. no person shall be compelled in any state, county, city, or other local civil, criminal, administrative, legislative, or other proceedings to identify or provide identifying characteristics which would identify any individual who is the subject of a blood test to detect antibodies te the evidence of infection by any probable causative agent of AIDS. SEC. 5. Section 199.21 of the Health and Safety Code is amended to read: 199.21. (a) Any person who, without written authorization, negli- gently discloses results of a blood test to detect antibodics t-e t-he evidence of infection by any probable causative agent of c, cqulrcd ~'...~',:nc deficiency ayndromc AIDS to any third party, in a manner which identifies or provides identifying characteristics of the person to whom the test results apply, except pursuant t~ n ;;'rlttc:'. authorization, es desex:Sod i~ subdivision ~ e~ c×ccpt as provided in this chapter, Section 1603.1, or Section 1603.3, shall be assessed a civil penalty in an amount not to exceed one thousand dollars ($1,000) plus court costs, as determined by the court, which penalty and costs shall be paid to the subject of the test. (b) Any person who, without written authorization, willfully dis- closes the results of a blood test to detect antibodics t-e t4m evidence of infection by any probable causative agent of acqulrcd ~rc..~ur.c~..~^e~ ~: ..... ayndromc AIDS to any third party, in a manner which identifies or provides identifying characteristics of the person to whom the test results apply, except ~ursu~r.t t~ ~ wr:ttcn authorization, as described i~ ~ubdivision (g), ~ ~ as provided in this chapter, Section 1603.1, or Section 1603.3, shall be assessed a civil penalty in an amount not less than one thousand dollars ($1;000) and not more than five thousand dollars ($5,000) plus court costs, as determined by the court, which penalty and costs shall be paid to the subject of the test. (c) Any person who, without written authorization, willfully or negligently discloses the results of a blood test to detect antibodies m t0a~ evidence of infection by any probable causative agent of c. cqulrcd ~-7.ur.c dcficicncy ayndromc AIDS to a third p*rty, in a manner which identifies or provides identifying characteristics! of the person to whom the test results apply, except Fursua.':t dc~cr~cd i~ ~ubdivision ~ ~ c~ccp~ as provided ~ th~ chapte~ Section 1~.1, or SecHon 1~3.3, which resets ~ economic, bo~ly, or psycholo~c~ harm to the subject of the test, is ~fl~ of a misdeme~or, pu~s~able by ~phso~ent in the co~ty jail f~ a period not to exceed one ye~ or a ~e of not ~ ...... a ~ ,u ..... ~a a~n~__ ~n~ less than one thousand dollars ($1,~) or more than five thousand dollars (85,~), or both. (d) Any person who commits any act descried in subdivision (a) or (b) sh~l be liable to the subject for ~ at'al damages, including damages for economic, bo~y, or psycholo~c~ ham wNch is a proximate cause of ~e act. (e) Each disclosure made in violation of ~is chapter ~ a separate ~d actionable offense. ' ~ ~c rca'alta ~ ~ ~laad ~ ~ dctcct ~odics ~ ~ pra~a~la i~c=~c; ~ prt~dc; idcn~ng charactc~fics~ determination ~ insurability ~ 3uitahility ~ ~ploymcnt. ~ (f) "W~tten authoriza~on," ~ used ~ this sec~on, applies only to the disclosure of test results by a person responsible for the care and treatment of the person subject to the test. W~tten authorization is required for each separate disclosure o~ the ~est ms,ts, ~d sh~l include t0 whom the &sclosure would be made. ~ (g) Not~g in this sec~on limits or e~ds the ~ght injured subject to recover d~ages under an~ other app~cable law. Nothing ~n t~s section sh~] ~mpose c~l habfl~ty or cr~mal sanc~on ~or disclosure of the results of tests performed on c~davers to public health authorities or ~ssue banks. ~ (h) Noting in this sec~on imposes liab~ or cr~inal s~ction for disclosure of a blood test to detect ~bodice ~ ~ evidence of infection b~ an~ probable causa~ve agent of A~DS in accordance ~th any repor~g req~remen~ ~ ~ &agn~ department b~ the StaW Depa~ment of Health ~Se~ices or the Centers for Disease Control ~der the U~ted States P~lic He~th Service. ~ (i) The ~c dcpar~cnt State Department of Health Se~ices may require blood b~s ~d plasma centers to submit monthly reports summa~zing statisfic~ data concerning the resets of tests to detect the presence of viral hepa~s ~d ~fibodice ~ ~ other blood tests indicaHve of infection b~ an~ probable causative agent of AIDS. This statisfic~ summary shall not ~clude the identit~ o~ indi~dual donors or identi~ing characteristics which would identify individu~ donors. ~ (j) "Disclosed,7 as used in this section, m~ans to disclose, release, tr~sfer, ~sseminate, or otherwise communicate all or record orally, in writing, or by elec~onic means ~o any person or entry. SEC. 6. Section 1~.~ of the Health and Safety Code is amended read: 1~.~. (a) ~ Except as provided in this section, no person sh~l test a person's blood for e~dence of ~tibodics ~ ~ infection by any probable causative agent of AIDS without the ~n consent of the subject of the test; ~d ~ pcr~n gL'i.~g ~ ~ ~.~I .~'c e wr~ttc.~ statcmcnt ;i~cd ~ ~ g~jzct ~nfirming T~L r~uircmcnt docs This consent shall ~ no different than is required for any other diagnos~c blood test. (b) When the subject of the test is not competent to give consent, consent may be obtained from the subject~ parent, guardian, conser- vato5 or other person lawfully authorized to make health care decisions for the subject. For pu~oses of this subdiviJion, a minor shall be deemed not competent to give consent, unle~ he or she is legally eman~pa ted. (c) The requirements of subdivision (a) do not apply to a any of the following: (1)~ A test performed at an alternative site, as lestablished pursuant to Article 8 (commencing with Section 1~0) of Ghapter 4 of Division 2. (2) Any blood ~d blood products specified in paragraph (2) of subdivision (a) of Section 1~.1 ...... r~ulrcm~t (3) When testing is performed ~ part of th~ medicM examination performed pursuant to Section 7152.5. (4) Tests conducted pursuant to Section 1202Jl of the Penal Code. ~ (d) Nothing in this section shall preclude~ a medic~ ex~iner other physician and surgeon from ordering or performing a blood test to Continued on page 138 95 102 Reporting Exposure Initiative Statute Argument in Favor Do you believe that infection by the AIDS virus should be treated like any other communicable disease and reported to the health department? PROPOSITION 10g is specifically designed to stop the spread of AIDS. It does this by requiring confidential reporting to public health authorities. Although AIDS is ~eatable, there is no cure--yet. But we can stop it from spreading. Currently, doctors are required to confidentially report to public health authorities cases of venereal disease, such as syphilis. But, if a doctor were to report all who are infected with the AIDS virus, he would be subject to a $10,000 fine and/or up to a year imprisonment. In short, UNDER 2URRENT LA W, IF A DOCTOR TI:tEA TS AIDS INFECTION LIKE HE WOULD ANY OTHER DISEASE, HE WOULD COMMIT A CRIME. Under PROPOSITION 102, persons found to be infected with the AIDS virus woulc be interviewed by the health department so that others with w ~om they have had sexual contact or shared drug needles can be confidentially counseled. ' PROPOSITION 1£2 does not call for the quarantine of people with AIDS. While AIDS is not curable, it is preventable, which is why it is so important to have the health department contact those who have been unknowingly exposed as well as those who have been unknowingly exposing others. Current AIDS-related pu, blie health laws have been politically motivated and simply don t work. One fact says it all: THE'OVERWHELMING MAJORITY OF THOSE INFECTEE BY THE AIDS VIRUS ARE UNAWARE OF THEIR CONDZTION OR THE POTENTIAL THREAT THEY MAY POSE TO OTHERS. For many decades, our public health officers have been confidentially testing, tracing and counseling those with eom-' munieable diseases. THE SYSTEM WORKS. Rebuttal to Argument in Proposition 102 isn't "good medicine." It's a public health nightmare and fiscal~saster. Don't be fooled by the proponents' "medical" arguments. The California Medical Association, California Nurses Associa- tion and Health Officers' Association strongly oppose Proposi- tion 102 as being counterproductive to the medical fight against AIDS. The argument for Proposition 102 is based on the simple- minded idea that AIDS is "like any other communicable disease." But all diseases aren't alike, and public health officials have special strategi~s for dealing with each of them. Proposi- tiOn 102 would destioy important policies designed by health experts to stop the spread of AIDS. The argument fori Prop,o. si,tion 102 is packed with ,m, istruths. Proposition 102 wOuldn t ' enhance confidentiality' mit actu- ally repeals Califor~ ia's AIDS confidentiality laTM. Anonymous AIDS testing has bee n highly successful in reducing the rate of new infections in hi h-risk communities. Proposition 102 would reverse this importa at progress. to AIDS Virus. of Proposition 102 Has "contact tracing" driven people "underground," away from treatment? Of course not. Experience in Colorado with similar laws has shown that many more people have undergone voluntary testing than here in California. Persons who believe that they may have been exposed to any disease have been able to turn to the public health department in complete reliance upon the time-honored system of confi- dentiality. PROPOSITION 102 will enhance confidentiality by expand- ing the legal definition of the AIDS test. PROPOSITION 102 will not give your employer the right to test you for AIDS without your consent. Health and life insurance premiums will likely increase as a result of the AIDS epidemic. PROPOSITION 102 will help keep the cost of insurance down. With AIDS, the only way to save a life is to prevent infection. That's what PROPOSITION 102 is all about. PROPOSITION 102 is both reasonable and effective. It will help stop the spread of a killer disease while respecting the confidentiality of those affected. It will save lives while providing early detection for countless thousands of victims. That's why thousands of California physicians support PROPO- SITION 102. VOTE "YES" ON PROPOSITION 102. It's GOOD MEDICINE. WARREN L. BOSTICK, M.D. Former President, California Medical Association Former Dean of the College of Medicine, University of California, Irvine Former President, American Society of Clinical Pathologists LAWRENCE J. McNAMEE, M.D. President, California Physicians for a Logical AIDS Response. Member, Los Angeles County Medical Association Committee on AIDS PAUL GANN President, People's Advocate, Inc. Favor of Proposition 102 Proposition 102 wouldn't keep insurance costs down. It would shift millions of dollars of health care costs to the taxpayers. Proposition 102 wouldn't prevent employers from forcing their employees to be tested--it repeals the law which prevents involuntary testing. Proposition 102 would drive potentially infected individuals away from voluntary testing which is linked to counseling to educate them-about how not to spread AIDS. Proposition 102 would cost California taxpayers hundreds of millions of dollars and would only make the epidemic worse. Vital research, treatment and education programs on AIDS would be closed down, endangering the lives of all Californians. Vote NO on Proposition 102! LEO McCARTHY Lieutenant Governor LAURENS P. WHITE, M.D. Presideng California Medical Association ROBERT J. MELTON, M.D., M.P.H. President, Health Officers' Association of California 96 Arguments printed on this page are the opinions of the authors and have not been Checked for accuracy by any official agency G88 Reporting Exposure to AIDS Virus. Initiative Statute Argument Against Proposition 102 AIDS is a serious public health crisis. It should not be a political football. Twice before, Californians have overwhelmingly rejected a misguided initiative on AIDS that was proposed by a politician with no medical expertise. We must do so again. Proposition 102 must be defeated for the health and safety of all Californians. This initiative would cripple the efforts of physicians, re- searchers and public health officials to halt the spread of AIDS. It would only make the epidemic worse. Proposition 102 is as extreme and irrational as the AIDS Quarantine Initiative (Propositions 64 and 69), which voters defeated by margins of two to one. In fact, the proponent of Proposition 102 was the only major public official to support the Quarantine Initiative. Like the AIDS Quarantine Initiative, Proposition 102 could cost California taxpayers hundreds of millions of dollars to enforce--money that would be far better spent on legitimate needs, including the prevention and treatment of AIDS. Worse yet, this initiative could cost many Californians their lives by creating a climate of fear that undermines research to find a vaccine and cure for AIDS. Like the AIDS Quarantine Initiative, Proposition 102 would strongly discourage people from getting tested for AIDS be- cause they could lose their jobs, homes or health Care. Thus more people will unknowingly transmit the virus to others and more infected blood will be donated to blood banks. Fewer volunteers will participate in vital research studies and fewer infected people will receive the early treatment which could save their lives. . Proposition 102 is NOT about the reporting of AIDS cases. The law already requires that this be done. Rather, this initiative Rebuttal to Argument Quarantine is not necessary to stop the spread of AIDS. That's why PROPOSITION 102 says "nothing contained in this section shall be construed to require the use of quarantine or isolation." The record is clear. PROPOSITION 102 is not an AIDS quarantine initiative. To suggest otherwise only adds to the fear and confusion experi- enced by the victims of this terrible disease. Haven't they suffered enough? The purpose of reporting and contact tracing is to let those who are infected know that they pose a risk to others. Current law calls for reporting of AIDS patients because that is good public health policy. But there are hundreds of thou- sands of others who carry the AIDS virus, and are contagious, but have not developed the advanced disease, yet. Doesn't it make sense for doctors to report these cases, too? Confidential contact tracing is a fair and effective way t,o balance the rights of victims With the fights of the public. That s why the nation's largest medical association has recommended that all states do it. Opponents to PROPOSITION 102 say that contact tracing 102 would require the public reporting of all persons who have positive AIDS antibody tests, tests which aren't even always accurate, i Public health officials agree that voluntary, anonymous AIDS testing is one of the single greatest factors contributing to the reduction of new infections in high-risk communities. Proposi- tion 102 would take away from medical professionals this vital tool to control the epidemic. ~ Like the AIDS Quarantine Initiative, Proposition 102 could force thousands of Californians out of their jobs in our schools and food service industries. It could throv~ many students out of school. None of them are any threat to the !public health because medical science has proven that AIDS is not casually contagious. Like the AIDS Quarantine Initiative, I~roposition 102 would create disruption and division in our workplaces, all for no legitimate public health purpose. Like the AIDS Quarantine Initiative, Proposition 102 would authorize widespread "witch hunts" and invasions of the pri- vacy of Californians. The lives of even those who are perfectly healthy could be ruined by misguided people making irrespon- sible charges. Proposition 102 is a punitive, political approach to AIDS that is totally at odds with modern medicine and science. Join us once again in supporting a sane, effective AIDS policy. Send the message again that California i voters want medical solutions to AIDS, not politics. Vote NO on Proposition 102. LAURENS P. WHITE, M.D. President, California Medical Association MARILYN RODGERS President, California Nurses Association TOM BRADLEY Mayor, City of Los Angeles Against Proposition 102 : will lead to "witch hunts." We say it's time to stop peddling such fear and panic. California's present AIDS ,,policy was proposed by the current mayor of San Francisco, a politician without medical exper- tise.'' It is a miserable failure. PROPOSITION 102 was developed byi doctors practicing in communities throughout California. It represents doctors doing what they do best--saving lives. ~ ~ "YES" VOTE ON PROPOSITION 102. LARIMORE CUMMINS, M.D. Chairman, Santa Cruz County Medical Society AIDS Task Force Former President, Santa Cruz County Medical Society WILLIAM E. DANNEMEYER United States Congressman, California LAWRENCE J. McNAMEE, M.D. Presideng California Physicians for a Logical AIDS Response Member, Los Angeles County Medii~al Association Committee on AIDS I G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 97 Insurance Rates, Regulation, Commissioner. Initiative Statute Official Title and Summary Prepared by the Attorney General INSURANCE RATES, REGULATION, COMMISSIONER. INITIATIVE STATUTE. Requires minimum 9.0-percent rate reduction from November 8, 1987, levels, for automobile and other property/casualty insurance. Freezes rates until November 8, 1989, unless insurance company is substantially threatened with insolvency. Thereafter requires every insurer offer any eligible person a good-driver policy with 20-percent differential. Requires public hearing and approval by elected Insurance Commissioner for automobile, other property/casualty insurance rate changes. Requires automobile premiums be determined primarily by driving record. Prohibits discrimination, price-fixing, unfair practices by insurance companies. Requires commissioner provide comparative pricing information. Authorizes insurance activities by banks. Summary of Legislative Analyst's estimate of net state and local government impact: Would increase Department of Insurance administrative costs bY $10 to $15 million in first year, varying thereafter with,workload, to bei paid by additional fees on the insurance industry. State'and some local governments would have unknown savings frOm lower insurance rates. Gross premium tax reduction of approximately $125 million for first three years offset by! required premium tax rate adjustment. Thereafter, possible state revenue loss if rate reductions and discounts continue but gross premium tax is not adjusted. Analysis by the Legislative Analyst Background Various types of insurance are sold in California, includ- ing automobile, liability, fire, health and life. In 1987, companies collectedi about $50 billion in premiums from the sale of insurancei. In turn, the state received about $1 billion from a tax on these premiums. Motor vehicle insurance is one of the major types of insurance purchased in the state. It accounted for about $12 billion (24 percent) of all premiums collected during 1987. Additionally, fire and liability insurance premiums totaled about $10 billion, or 21 percent, of all premiums. Rate Setting by Insurance Companies. Currently, in- surance companies set rates for various types of insur- ance, using a number of factors. For motor vehicle insurance, these factors generally include the age, sex, marital status, driving record, type of vehicle and home address of the insured. The insurance companies also take into consideration other factors such as their claims experience, income land expenses. Insurance companies are not required to itell the public what relative weight they give to these factors when setting rates. In addition, insurance companies are not subject to the state's anti- trust laws. Role of the Department of Insurance in Reviewing Rates. Currently, the Department of Insurance does not review and approve insurance rate changes before they take effect. Insteadg the Department of Insurance can request insurance c~mpanies to justify such rates after they take effect, as part of the rate examination process or in response to complaints from consumers. Historically, the scope and frequency of rate examinations has been limited. Proposal In summary, this measure: · Requires insurance companies to reduce rates for various types of insurance, including motor vehicle, fire and liability. · Requires insurance companies to offer a "Good Driver Discount Plan" and makes other changes regarding automobile insurance. · Requires the Insurance Commissioner to review and approve rate increases--for various types of insur- ance--before they can take effect. · Requires that the Insurance Commissioner be elected. This measure changes the laws that regulate insurance rates for certain types of insurance. It applies to motor vehicle, fire and liability insurance, but not to life, mortgage and disability insurance. Rate Reductions 1. Rate Reduction. This measure requires that rates for motor vehicle, fire and liability insurance issued or renewed on or after November 8, 1988, be reduced by 20 percent from their levels on November 8, 1987. 2. Rate Freeze. The measure requires that the rates be kept at the reduced levels until November 8, 1989. During this period, the rates can be increased only if the Insurance Commissioner determines that the affected insurance company is threatened with insolvency. Review and Approval of Insurance Rate Filings Beginning November 8, 1989, the measure requires the Insurance Commissioner to review and approve rate changes before they go into effect. Insurance companies are required to file information with the commissioner to justify the new rates. In general, the commissioner is required to hold a public hearing on the proposed rate change whenever it exceeds certain percentages. Addi- tionally, the commissioner is authorized to hold a hearing when requested by a consumer. Good Driver Discount Plan and Other Automobile Provisions 1. "Good Driver" Discount. This measure requires insurance companies to offer motor vehicle insurance to good drivers at reduced rates. These rates would take effect November 8, 1989, (one year after the general rate reduction) and would be 20 percent below the rate which would otherwise have been paid for the same coverage. Continued on page 140 98 : G88 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure adds and repeals sections of the Insurance Code, and adds a section to the Revenue and Taxation Code; therefore, existing sections proposed to be deleted are printed in :t~lrcc.'at .'3'~c and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Findings and Declaration. The People of California fi'nd and declare as follows: Enormous increases in the cost of insurance have made it both unaffordable and unavailable to millions of Californians. The existing laws inadequately protect consumers and allow insur- ance companies to charge excessive, unjustified and arbitrary rates. Therefore, the People of California declare that insurance reform is necessary. First, property-casualty insurance rates shall be immediately rolled back to what they were on November 8, 1987, and reduced no less than an additional 20%. Second, automobile insurance rates shall be determined primarily by a driver's safety record and mileage driven. Third, insurance rates shall be maintained at fair levels by requiring insurers to justify all future increases. Finally, the state Insurance Commissioner shall be elected. Insurance companies shall pay a fee to cover the costs of administering these new laws so that this reform will cost taxpayers nothing. SECTION 2: Purpose. The purpose of this chapter is to protect consumers from arbitrary insurance rates and practices, to encourage a competitive insurance marketplace, to provide for an accountable Insurance Commissioner, and to ensure that insurance is fair, available, and affordable for all Californians. SECTION 3: Reduction and Control of Insurance Rates. Article 10, commencing with Section 1861.01 is added to Chapter 9 of Part 2 of Division I of the Insurance Code to read: Insurance Rate Rollback 1861.01. (a) For any coverage for a policy for automobile and any other form of insurance subject to this chapter issued or renewed on or after November 8, 1988, every insurer shall reduce its charges to levels which are at least 20% less than the charges for the same coverage which were in effect on November 8, 1987. (b) Between November 8, 1988, and November 8, 1989, rates and premiums reduced pursuant to subdivision (a) may be only increased if the commissioner finds, after a hearing, that an insurer is substantially threatened with insolvency. (c) Commencing November 8~ 1989, insurance rates subject to this chapter must be approved by the commissioner prior to their use. (d) For those who apply for an automobile insurance policy for the first time on or after November 8, 1988, the rate shall be 20% less than the rate which was in effect on November 8, 1987, for similarly situated risks. (e) Any separate affiliate of an insurer, established on or after November 8, 1987, shall be subject to the provisions of this section and shall reduce its charges to levels which are at least 20% less than the insurer's charges in effect on that date. Automobile Rates & Good Driver Discount Plan 1861.02. (a) Rates and premiums for an automobile insurance policy, as described in subdivision (a) of Section 660, shall be deter- mined by application of the following factors in decreasing order of importance: (1) The insured's driving safety record. (2) The number of miles he or she drives annually. (3) The number of years of driving experience the insured has had. (4) Such other factors as the commissioner may adopt by regulation that have a substantial relationship to the risk of loss. The regulations shall set forth the respective weight to be given each factor in determining automobile rates and premiums. Notwithstanding any other provision of law, the use of any criterion without such approval shall constitute unfair discrimination. (b) (1) Every person who (A) has been licensed to drive a motor vehicle for the previous three years and (B) has had, during that period, not more than one conviction for a moving violation which has not eventually been dismissed shall be qualified to purchase a Good Driver Discount policy from the insurer of his or her choice. An insurer shall not refuse to offer and sell a Good Driver Discount policy to any person who meets the standards of this subdivision. (2) The rate charged for a Good Driver Discount policy shall comply with subdivision (a) and · shall be at least 20% below the rate the insured would otherwise have been charged for the same coverage. Rates fo~ Good Driver Discount policies shall be approved pursuant to this article. (c) The absence of prior automobile insurance coverage, in and of itself shall not be a criterion for determining eligibility for a Good Driver Discount policy, or generally for automobile rates, premiums, or insurability. (d) This section shall become operative on] November 8, 1989. The commissioner shall adopt regulations implertlenting this section and insurers may submit applications pursuant to this article which comply with such regulations prior to that date, provided that no such application shall be approved prior to that da~e. Prohibition on Unfair Insurance Practices 1861.03. (a) The business of insurance shall be subject to the laws of California applicable to any other business, inqluding, but not limited to, the Unruh Civil Rights Act (Civil Code Sections 51 through 55), and the antitrust and unfair business practices laws (Parts 2 and 3, commencing with section 16600 of Division 7, of the Business and Professions Code). (b) Nothing in this section shall be constrUed to prohibit (1) any agreement to collect, compile and disseminate historical data on paid claims or reserves for reported claims, provided such data is contempo- raneously transmitted to the commissioner, or :(2) participation in any joint arrangement established by statute or the commissioner to assure availability of insurance. (c) Notwithstanding any other provision of law, a notice of cancel- lation or non-renewal of a policy for automobile insurance shall be effective only if it is based on one or more of the following reasons: (1) non-payment of premium; (2) fraud or mqterial misrepresentation affecting the policy or insured; (3) a substantial increase in the hazard insured against. Full Disclosure of Insurance Information 1861.04. (a) Upon request, and for a reasonable fee to cover costs, the commissioner shall provide consumers witl~ a comparison of the rate in effect for each personal line of insurance for every insurer. Approval of Insurance Rates 1861.05. (a) No rate shall be approved or ~emain in effect which is excessive, inadequate, unfairly discriminatory Dr otherwise in violation of this chapter. In considering whether a rate iS excessive, inadequate or unfairly discriminatory, no consideration shall] be given to the degree of competition and the commissioner shall consider whether the rate mathematically reflects the insurance companly's investment income. (b) Every insurer which desires to changg any rate shall file a complete rate application with the commissioner. A complete rate application shall include all data referred to in Sections 1857. 7, 1857.9, 1857.15, and 1864 and such other information as the commissioner may require. The applicant shall have the burden of proving that the requested rate change is justified and meets the requirements of this article. (c) The commissioner shall notify the public of any application by an insurer for a rate change. The application shall be deemed approved sixty days after public notice unless (1) a ~onsumer or his or her representative requests a hearing within forty-five days of public notice and the commissioner grants the hearing, or determines not to grant the hearing and issues written findings in support of that decision, or (2) the commissioner on his or her own motio6 determines to hold a hearing, or (3) the proposed rate adjustmentI exceeds 7% of the then applicable rate for personal lines or 15% for co~nmercial lines, in which case the commissioner must hold a hearing upon a timely request. 1861.06. Public notice required by this articte shall be made through distribution to the news media and to any mqmber of the public who requests placement on a mailing list for that purpose. 1861.07. All information provided to the commissioner pursuant to this article shall be available for public inspection, and the provisions of Section 6~54(d) of the Government Code and Section 1857.9 of the Insurance Code shall not apply thereto. 1861.08. Hearings shall be conducted pursuant to Sections 11500 through 11528 of the Government Code, except that: (a) hearings shall be conducted by administrative law judges for purposes of Sections 11512 and 11517, chosen under Section 11502 or appointed by the commissioner; (b) hearings are commenced b~ a filing of a Notice in lieu of Sections 11503 and 11504; (c) the commissioner shall adopt, Continued on page 140 99~ 103 Ir suranee Rates, Regulation, Commissioner. Ir itiative Statute Argument in Favor There are important differences between the five insurance initiatives on the November ballot which you should be aware of before voting. Proposition 103--Voter Revolt to Cut Insurance Rates --is the only insurance initiative written and paid for exclusively by consumers. It alone reduces all of your automobile, home and business insurance premiums to November 1987 prices. Then, it alone cuts them another 20%. Proposition 103 Will also end the insurers' exemption from the antimonopoly laws, allow people to elect the Insurance Commissioner, require a special 20% discount for good drivers, and stop unfair price increases in the future. It specifies that a permanent, independent con- sumer watchdog system will champion the interests of insurance consumers. Proposition 103 is;written in plain language. There are no loopholes or finel print. Unlike the other propositions, nonlawyers can read it. Because the polls! showed that the insurance industry could not defeat Vo~er Revolt's 103 directly, the insurance companies came up with a plan to defeat it indirectly. They are pushing Proposition 10~. the so-called "no- fault" proposition---and are spending tens of millions of dollars to advertise I that it is better for consumers than Proposition 103. Privately, insurance executives have admitted that their Proposition 10~ would actually raise auto insurance premiums for many drivers. Worse, Proposition 104 re- writes the entire California Insurance Code to benefit insurance companies. The 24,000 words of obscure legal- ese in Proposition 104 turn the law into a "your fault" system. Their fine!print cancels out every consumer reform in Voter Re~/olt's Proposition' 103. of Proposition 103 Some insurance companies disagree with "no fault," so they're financing Proposition 101, which claims to make the biggest cut in auto insurance. But the big cut they boast about affects only one portion of your auto insur- ance-they could raise premiums for the rest of your coverage as much as they want. In return, Proposition 101 allows insurance companies to avoid full payment for accidents. It, too, cancels many of the auto insurance reforms in Proposition 103. Insurance companies are also financing Proposition 106, which restricts your right to quality legal counsel. The insurance companies claim Proposition 106 will cut their costs. In fact, it will limit your ability to make the insurance companies pay up. Proposition 100, which is paid for by trial lawyers and bankers, simply does not go far enough to protect con- sumers' interests. Unlike Proposition 103, it does not automatically and immediately cut insurance rates. Nor does it enable consumers to permanently unite to fight against insurance abuse, as Voter Revolt's Proposition 103 does. Proposition 103 is the only initiative written and paid for exclusively by consumers. It will save you the most money. To guarantee that every reform in Voter Revolt's Proposition 103 becomes law, it must get more "Yes" votes than any other proposition. Every vote in favor of another insuranee proposition eaneels your vot~ for,Prop- osition 103. That's why we advise you to vote Yes only on Proposition 103. BALPH NADER Consumer Advocate HARVEY ROSENFIELD Chair, Voter Revolt to Cut Insurance Rates/ Proposition 103 Rebuttal to Argument in Favor of Proposition 103 Proponents of PROP 103 claim that their initiative includes no "fine print," but IT'S FULL OF UNIN- TENDED CONSEQUENCES THAT WILL WIPE OUT ANy BENEFITS IT PROMISES YOU. VOTE NO ON PROP 103. The most glaring example of this "fine print" allows for massive government intervention into the insurance in- dustry. A GOVERNMENT-RUN INSURANCE SYSTEM IS NOT THE ANSWER. In New Jersey, where the government intervened in the insurance business under circumstances similar to those mandated in !PROP 103, every driver is paying a surcharge to help ftot a $2.5-billion deficit racked up by the state-run insurance system. PROP 103 advocates also tell you their initiative con- tains no loopholes. Look again. It's loaded with them. · RATES WILL iNCREASE by an average 22% for two-thirds of the state's drivers, according to the State Department of Insurance, because PROP 103 eliminates rating based on the driving safety record of your neighborhood and forces suburban and rural drivers to subsidize motorists in,high-risk areas. · DRUNK DRIVERS who haven t lost their licenses can qualify for "good driver" discounts. A MASSIVE BUREAUCRACY IS NOT THE SOLU- TION. Only fundamental reform of our auto insurance system will hold down insurance premiums. We need to reduce the cost of litigation, fraud and subsidizing unin- sured motorists. PROP 103 DOES NOT REFORM OUR SYSTEM. IT DOES NOT GUARANTEE YOU LONG-TERM RATE REDUCTIONS. Vote NO on PROP 103. ALISTER McALISTER Former Chair, Assembly Finance and Insurance Committee ED DAVIS State Senator, 19th District KIRK WEST Presideng California Chamber of Commerce 100 Arguments prin~ed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Insurance Rates, Regulation, Commissioner. Initiative Statute 103 Argument Against Proposition 103 KEEP BIG GOVERNMENT OUT OF THE AUTO INSURANCE BUSINESS. You might think PROP 103's auto insurance rate reduc- tions seem too gOod to be true. You're right. Vote NO on PROP 103; it does not enact any cost- cutting reforms. Instead, it attacks the symptoms of our failing auto insurance system. It does not address, let alone begin to grapple with, the real problem--the cost of uninsured motorists, fraud and, most importantly, run- away auto accident litigation. PROP 103 might seem well-intentioned but, unfortu- nately, it inevitably would lead to a huge, state-run insurance system costing millions of dollars. Hidden provisions of this measure give the state un- precedented authority to enter the insurance business. If you think lines are long and the bureaucracy impenetra- ble at government offices today, just wait until you have to deal with the state to purchase insurance. This sloppily drafted measure will: · Raise insurance premiums, in the long term, fqr the majority of California drivers. PROP 103 forces insurers to ignore the driving safety record of where you live and, instead, forces you to subsidize drivers in areas that have the highest insurance losses. For example, a 55-year-old suburban driver will end up paying more for insurance so that a young urban driver can pay less. A State Department of Insurance study recently predicted that this aspect of P, ROP 103 will raise rates for two-thirds of the state s drivers --by an average 22%! Allow convicted drunk drivers Who have not lost their licenses to win an additional rate discount for "good driving." Make the Insurance Commissioner an elected official with enormous new powers. This "insurance czar" would be a politician first, and a regulator second. As a politician, this official would be preoccupied with raising cam,,paig,,n money from special interests all too willing to buy influence. · Create a huge government bureaucracy that does nothing to make auto insurance more affordable. Instead, PROP 103 would add time, expense and lots of lawyers to enact a price-con~rol policy that has failed miserably in New Jersey and other states. To carry out this price-control policy, the, measure in- creases the Department of InsUrance s budget by 33% and its staff by at least 100 new bureaucrats. VOTE NO on PROP 103. Lowering auto premiums for California drivers is a laudable goal, but this measure's flawed methods are not the answer. Please VOTE NO on PROP 103. KIRK WEST President, California Chamber of COmmerce WILLIAM CAMPBELL State Senator, 31st District Chairman, Joint Legislative Budget Committee DAVID DAVREUX Author, Consumers' Guide to Auto ]nsurance Rebuttal to Argument Against Proposition 103 The insurance companies want to divert your attention away from the fact that Prop 103 will save everyone 20% on their auto insurance as well as their home and business insurance. That's why the statement above employs confusing and often ridiculous arguments against it. Here are the facts: · 103 is the only initiative that will immediately cut everyone's premiums by 20%. · 103 forces insurance companies to base your rates on your driving record first, rather than on where you live. That means good drivers throughout the state will pay less than they do now, while bad drivers will pay more. · 103 eliminates the insurance industry's unfair exemp- tion from the antitrust laws. This will reduce rates permanently. · 103 involves no new government bureaucracy--just a new set of rules to create a competitive marketplace and prohibit excessive rates. · 103 will actually save money for taxpayers, according to the official California State Le~gislative Analyst. · And no wonder the insurance companies don't want an elected Insurance CommissiOner--in the states where people elect insurance commissioners, rates average 30% lower than in CalifOrnia. Voter Revolt's Proposition 103 is the only insurance reform initiative written and paid for exclusively by consumers. That's why it is the onlyi initiative endorsed by Ralph Nader. 103 will lower insurance rates for everyone,. That's why the insurance industry is against R_- Don t buy their misleading advertising. Vote YES on iProposition 103. HARVEY ROSENFIELD Chair, Voter Revolt to Cut Insuranqe Bates/ Proposition 103 G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 101 Automobile and Other Insurance. Initiative Statute Official Title and Summary Prepared by the Attorney General AUTOMOBILE AND OTHER INSURANCE. INITIATIVE STATUTE. Establishes no-fault insurance for automobile accident injuries, covering medical expenses, lost wages, funeral expenses. Accident victim may recover from responsible party only for injuries beyond no-fault limits. Prohibits recovery for noneconomic injuries except cases of serious and permanent injuries and specified crimes. Reduces rates for certain coverages 20 percent for two years. Cancels Propositions 100, 101, 103. Restricts future insurance regulation legislation. Requires arbitration of disputes over insurers' claims practices, limits damage awards against insurers. Prohibits agents and brokers from discounting. Increases Insurancq Commissioner's power to prosecute fraUdulent claims. Limits plaintiffs' attorney contingency fees in motor vehicle a~cident cases. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Would increase state administrative costs by about $2.5 million in 1988-89, varying thereafter with workload, to be paid by additional fees on the insurance industry. State and some local governments would have unknown savings from lower insurance rates and liability limitations. Possible but unknown effect on recovery of workers' compensation. Possible reduction in court costs and court revenues could result from limitations on claims for noneconomic damages. Would reduce state revenue from the gross premiums tax by about $25 million a year for two years if no other changes are made in insurance rates. Analysis by the Legislative Analyst 'Background Various types of insurance are sold in California, includ- ing automobile, liability, fire, health and life. In 1987, insurance companies collected about $50 billion in pre- miums from the sale of insurance. In turn, they paid about $1 billion to the state in a tax on these premiums. Motor vehicle insurance is one of the major types of insurance purchased in the state. It accounted for about $12 billion (24 percent) of all premiums collected during 1987. Such insurance may include protection for: · Liability and property damage (which covers claims for bodily injury and property damage to others when the insured person was at fault); · Medical (which covers the insured person and others in the automobile, regardless of fault, for "excess" medical expenses, meaning those expenses not cov- ered by other insurance); · Collision (whiOh covers collision damage to the in- sured's car regardless of the fault of the insdred); · Comprehensive (which covers damage other than collision, such as fire, theft, glass breakage and van- dalism, to the insured's car); and · Uninsured and'underinsured motorist (which covers claims for bodily injury and/or property damage caused by a motorist who is at fault and who has no insurance or inadequate insurance). Rate Setting by Insurance Companies. Currently, in- surance companies set rates for various types of insur- ance, using a number of factors. For motor vehicle insurance, these factors generally include the age, sex, marital status, driving record, type of vehicle and home address of the insured. The insurance companies also take into consideration other factors such as their claims experience, income and expenses. Insurance companies are not required to tell the public what relative weight they give to these factors when setting rates. In addition, insurance companies are not subject to the state's anti- trust laws. Role of the Department of Insurance in Reviewing 102 Rates. Currently, the Department of Insurance does not review and approve insurance rates before they take effect. Instead, the Department of Insurance can request insurance companies to justify such rates after they take effect, as part of the rate examination process or in response to complaints from consumers. Historically, the scope and frequency of rate examinations have been limited. Current Method of Settling Claims. Currently, the party who is "at fault" in an accident is responsible for paying compensation for both bodily injury and property damage. If a claim for damages is filed and one or more of the parties involved in an accident is insured, insurance companies attempt to determine who is at fault. These claims are usually settled by negotiations or by court action. After it is determined which party is at fault, the insurance company of that party pays the damages, not to exceed the limits of the insurance policy. Attorney Fees. Attorney fees in motor vehicle acci- dent cases are usually based on a percentage of the amount the client recovers and are referred to as "con- tingency fees." The fees are fixed by a contract between the attorney and client. There are no dollar limits on contingency fees in these cases. Proposal In summary, this measure: · Establishes a "no-fault" motor vehicle insurance sys- rem that (1) pays benefits up to specified limits to an accident victim who suffers bodily injury and (2) permits individuals to sue for losses which exceed those limits. · Limits noneconomic losses (such as "pain and suffer- ing") and attorney contingency fees. · Requires a two-year reduction in certain motor ye- hiCle insurance rates, Continued on page 144 G88 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure adds, amends, and reenacts sections of the Insurance Code, and amends and adds sections of the Vehicle Code; therefore, existing provisions proposed to be deleted are printed in :tr,!rec.-at '.yFc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Title. This initiative shall be known as the Insurance Cost Control Act of 1988. SECTION 2. Findings and Declaration. The people find and declare as follows: 1. Insurance costs, the number of claims and lawsuits, and the size of jury awards have increased greatly in California in recent years. A large percentage of court awards goes to pay legal fees and court costs. These costs are ultimately passed on to the public in the form of higher insurance premiums. 2. A system of no-fault automobile insurance will reduce wasteful litigation, speed payment of claims, and help stabilize insurance costs. A no-fault system which mandates a two year statewide average reduction in the rates for basic automobile insurance for personal injuries (including no-fault insurance, liability insurance, medical payments and uninsured motorist insurance) will result in automobile insurance premium savings. 3. A no-fault automobile insurance system should (a) provide that specified compensation for bodily injuries be paid directly by the insured's insurance company regardless of fault, (b) allow compensa- tion for property damage and additional compensation for serious and permanent injuries to continue to be based on the present fault system, (c) place limits on attorneys'contingency fees, and (d) provide that no insurance company can cancel, refuse to renew, or increase the rate charged any person for any insurance policy solely on account of any prior payment of a no-fault claim. 4. Penalties should be increased for uninsured motorists. 5. Insurance rates should be established by competition in the open market. 6. Fraudulent insurance claims have resulted in greater insurance costs requiring stronger anti-fraud laws. Z The insurance Commissioner should impose penalties and fines on insurance companies which unlawfully discriminate in setting rates, and should hear evidence from consumers in proceedings before the Com missioner. 8. Arbitration procedures should be established to allow disputes regarding claims under liability insurance policies to be resolved without costly litigation. SECTION 3. Purpose. The people enact this initiative to control the cost of insurance in California by establishing a no-fault s!tstem to govern motor vehicle accident claims, by increasing penalties for uninsured motorists, by requiring that insurance rates be established by market competition, by providing an option for speedy resolution by arbitration of disputes with insurers over liability claims and by regulating insurance fraud and anti-competitive insurance company practices. SECTION 4. California Guaranteed Protection Plan. There is hereby added to Division 2, Part 3 of the Insurance Code the following Chapter 6, commencing at Section 12001, which shall be known as the California Guaranteed Protection Plan: 12001. Definitions. (1) "Accident victim" or "victim" means a person suffering personal injury as defined in this Section. (2) "Basic loss benefits" means (i) required loss benefits and (ii) optional loss benefits. (3) "Disability" means medically established inability of a victim to perform the usual and customary duties of the victim's occupation. (4) "Government" means the government of the United States, Canada, any state, the District of Columbia, any Canadian province, any political subdivision of any of the foregoing entities, any instru- mentality of two or more of the foregoing entities, or any agency, subdivision, or department of any such government, including any corporation or other association organized by a government for the execution of a government program and subject to control by a government, or any corporation or agenc*j established under an inter- state compact or international treaty. (5) "Insurance" means any policy of insurance, contract, or other G88 undertaking by a duly authorized insurer, self-insurer, or obligated government to pay or provide basic loss benefit~ in accordance with this Chapter with respect to the ownership, maintenance, or use of one or more specified motor vehicles or classes of moto~ vehicles, to which such insurance shall be deemed applicable. (6) "Insured" means, with respect to basic loss benefits: (a) an individual (hereinafter referred to ~s a "named insured") identified by name as an insured in a contract Of insurance pursuant to this Chapter for any vehicle for which that pqlicy provides insurance; and (b) a spouse or other relative of a named i~Sured, or an individual below the age of 18 in the custody of a named i~sured or in the custody ora relative of a named insured, provided such ~pouse, other relative, or individual is: (i) neither a named insured in any other contract of insurance in accordance with this Chapter nor obligated tO maintain insurance in accordance with this Chapter for any vehicle for which the contract of insurance under which such person claims to be insured does not constitute such insurance; and (ii) in residence in the same household with a named insured. (7) "Insurer" includes an insurer authorize~ to transact business in this state or, with respect to any policy providing insurance for a vehicle registered in another state, the insurer issuir~g that policy, and any self-insurer or obligated government providing or obligated to provide basic loss benefits in accordance with this Chapter. (8) "Medical rehabilitation services" means iservices reasonably nec- essary and reasonably designed to reduce the disability and dependence of a victim and to restore such person, to the extent reasonably possible at a cost which is reasonable in relation to thel degree of restoration to be achieved, to his/her pre-accident level of physical functioning. (9) "Medical expense" means reasonable iand necessary charges incurred for, or (when products, services, or accommodations are provided without charge by any person who is, neither the employer of the victim nor an employee or agent of such employer) the reasonable value of reasonably needed and used products, services, and accommo- dations for: (a) professional medical treatment and car~ for personal injury; (b) emergency medical services for personat injury; (c) medical rehabilitation services for persobal injury; and (d) any non-medival care and treatmenti rendered for personal injury in accordance with a religious method qf healing recognized by the laws of this State. The term does not include that portion of a~ charge for a room in a hospita~ clinic, convalescent or nursing home, ior any other institution engaged in providing nursing care, medical care, and related services, in excess ora reasonable and customary charge for semi-private accommo- dations, unless medically required. Professiona[ medical treatment and care, emergency medical services, and medical rehabilitation services are not to be considered "reasonably needed"unless (i) widely accepted as apprOpriate and effective for similar injuries or conditions by medical practitioners in this State or the United States, (ii) based upon scientific criteria generally accepted by medical practitioners in'this State or the United States, and (iii) not Df an experimental or investigational nature. (10) "Motor vehicle" means a vehicle having more than three load bearing wheels, of a kind required to be registered under the laws of this State relating to motor vehicles, designed primorily for operation upon the public streets, roads, and highways, and driven by power other than muscular power, and includes a trailer drawn iby or attached to such a vehicle. (11) "Non-economic loss" means pain, suffqring, emotional distress, inconvenience, physical impairment, loss of society, and any other non-pecuniary damage recoverable under the tort law applicable to a personal injurg. I (1£) "Optional loss benefits" includes (i) Ibasic loss benefits with monetary and/or temporal limits in excess of required loss benefits and (ii) basic loss benefits provided as a result of a named insured's exercise of an option provided pursuant to Section 12011. (13) "Owner"means the person in whose name the motor vehicle has been registered. If no registration is in effect at the time of an accident involving the motor vehicle, "owner" means the person who holds the legal title thereto or, in the event the motor vehicle is the subject of a securitg agreement or lease with option to purchase with the debtor or lessee having the right to possession, "owner" means the debtor or lessee. :Continued on page 148 103 104 AUtomobile and Other Insurance. Initiative Statute Argument in Favor of Proposition 104 NO-FAULT, PROP 104, is the only insurance measure on the ballot thal~ saves consumers money by truly reforming California's failing auto insurance system. PROP 104 is a comprehensive cost-control measure that cuts auto insurande premiums by reducing the costs driving up insuranfe rates--high legal costs, fraud and the burden of protecting ourselves against uninsured motorists. This measure enacts a NO-FAULT system, where auto accident victims axe guaranteed medical and work-loss benefits from their own insurance company--regardless of fault. By restricting costly lawsuits, except in cases of "serious and permanent" injuries, no-fault saves consum- ers and taxpayers money now and in the future. NO-FAULT is fundamental reform that will: · REDUCE PREMIUMS by requiring all California auto insurers to cut rates for basic personal injury coverage by ar~ average of 20%. This will result in an immediate ove!all average premium reduction of 7% to 17%. · PROTECT CONSUMERS by prohibiting insurers from canceling or nonrenewing policies, or increas- ing rates solely because of a no-fault claim. · GUARANTEE rapid payment of claims. PROP 104 rec~uires insurers to pay all valid no-fault claims within 30 days~ of the claim or face a stiff interest penalty. · SAVE taxpayers and consumers money by reducing court cases. Consider these facts from the Rand Corporation: 43% of civil court cases in California involve auto accidents and the average jury trial for an injury case Costs taxpayers $8,300. Other estimates show that 52 Cents of every insurance dollar con- tested in court goes to pay legal expenses, not to compensate victims. Rebuttal to Argument in Important facts are missing from the statement above. First, Propositior~ 104 was written, and is being paid for, by the insurance companies. It will not reduce rates; it will raise them. Il; will not protect consumers; it will permit further abuse of consumers by the insurance industry. According to the Los Angeles Times (June 24, 1988), at a private meeting of insurance agents on March 14, 1988, that was secretly taped, Donald Stewart, director of the American Agents Alliance and a supporter of 104, admit- ted that 104 "guarantees no cost savings." Stewart also admitted that insurance companies "can change their rates the day befOre the election" to offset any rate reductions promised if 104 is approved by the voters. Finally, Stewart admitted that, under 104, rates could increase by 35% fop some drivers. Second, the statement above fails to mention that there · PRESERVE the right to sue for out-of-pocket ex- penses that exceed no-fault benefit limits and for "pain and suffering" damages in eases of "serious and permanent" injuries. PROP 104 requires all drivers to purchase a basic benefits package of $10,000 for medical expenses and $15,000 for work loss. In 1986, 90% of all auto accident claims wouM have been fully covered by these basic no-fault benefits. Drivers who want more coverage can purchase,i.t. Motorists already covered by a health plan, or who don t need wage-replacement, coverage, can save even, more by purchasing less coverage at lower cost. PROP 104 creates a new deterrent to driving uninsured because uninsured motorists cannot receive no-fault ben- efits and cannot sue for compensation unless they are seriously injured. The U.S. Department of Transportation and numerous consumer organizations have praised the type of no-fault systemproposed for California for providing more money to accident victims, more quickly and more efficiently than traditional auto insurance. Don't be fooled by other initiatives that promise large prem,.ium cuts--they either do nothing to cut costs or they don t guarantee that cost reductions will be permanent. VOTE YES on PROP 104. It is the only responsible, proven auto insurance reform. We urge you to vote for reform by voting YES on PROP 104. DIANNE FEINSTEIN Former Mayor of San Francisco ALFRED F. FEDERICO Presideng California State Automobile Association (AAA) PAT NOLAN Member of the Assembly, 41st District Assembly Minority Leader Favor of Proposition 104 is a hidden section in 104. Its fine print cancels every reform in Voter Revolt's Proposition 103, the initiative backed by Ralph Nader. Because the insurers were afraid they would be unable to defeat 103, theydecided to spend $23 million to pass 104, and hide within it regula- tions that would cancel everything in 103. Where will the $23 million come from? According to the Los Angeles Times (July 8, 1988), $2.3 million will come from State Farm, $2.1 million from Farmers, $1.4 million from Allstate, and the rest from other insurance companies. Every vote for 104 is a vote against real insurance reform. Vote NO on 104. HARVEY ROSENFIELD Chair, Voter Revolt to Cut Insurance Rates/ Proposition 103 104 · Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency C,88 Argument Against Proposition 104 The insurance industry is spending millions of adver- tising dollars to say "Trust us. Our Proposition 104 the 'no fault' initiative--will lower your automobile insur- ance rates." The insurance companies don't expect you to read Proposition 104's confusing 24,000 words of legal jargon, which turn insurance law into a "your fault" system. However, we've studied Proposition 104. It contains many traps and pitfalls for consumers. For example, Proposition 104 allows insurance compa- nies to continue their anticompetitive behavior and ex- empts them from California's antitrust and consumer protection laws. It allows insurance companies to con- tinue to raise their rates as much as they want, without opening their books to justify them. It prevents consum- ers form effectively challenging insurance companies when they unfairly raise rates, cancel policies or refuse to pay a claim. It maintains the present laws which prohibit insurance agents from offering discounts. It permits insurers to continue to base rates unfairly on where you live, rather than upon your driving record. And it does nothing to lower rates for homeowner, business and other kinds of insurance. The insurance companies wrote Prop- osition 104 to defeat genuine insurance reform proposals on this ballot and obstruct future reform efforts. Second, the insurance industry's Proposition 104 won't save m.a,,ny consumers a penny. Its promised "7-17% discount only applies to a portion of your automobile policy. The companies will be free to charge you what- ever they wish for the rest of the coverage you must buy. Insurance industry representatives themselves have ad- mitted privately that many drivers will pay more under Proposition 104. Worse, Proposition 104 allows the aUtomobile insurance companies to continue to raise rates through Election Day, before they give drivers the advertised "discount." Many companies have already raised prices between 10% and 20% this year--so the reductioni offered by Proposi- tion 104 is already meaningless. Third, under Proposition 104 it wili be even harder for drivers to make insurance companies pay fully for a legitimate claim. And, under their 'ino fault" plan, you will have to collect from your own inmrance company in most cases if someone else strikes yoU. Under Proposition 104, careful drivers are treated the same as unsafe drivers. Finally, Proposition 104 will not lower your taxes. In fact, Proposition 104 forces taxpayer-funded programs like Medi-Cal to pay compensation to victims first, before the insurance companies have to pay. This simply means insurance companies will pay less, while taxpayers shoul- der the burden of compensation. Auto insurance "no fault" systems written by insurance companies do not lower rates or protect consumers. A 1985 U.S. government study shows, that car insurance rates are up to 40% higher in states with "no fault" systems. That's why Nevada and Pennsylvania have re- pealed their "no fault" laws in rece~ years. Don't be misled by the insurance industry's advertising campaign. Every vote for Proposition 104 is a vote for higher rates and against needed refc~rms. We advise you to vote "NO" on the insurance industry's Proposition 104. RALPH NADER Consumer Advocate HARVEY ROSENFIELD Chair, Voter Revolt to Cut Insurance Rates/ Proposition 103 Rebuttal to Argument PROP 104, NO-FAULT, IS THE ONLY INSURANCE MEASURE THAT REDUCES PREMIUMS BY PERMA- NENTLY CUTFING COSTS OUT OF THE INSURANCE SYSTEM. VOTE YES ON 104. Proponents of other insurance initiatives promise tem- porary premium reductions. What they don't tell you is that hidden provisions of their initiatives mandate mas- sive government intervention. They also don't tell you that bureaucracies in other states have failed miserably to hold down premiums. Consider New Jersey, where government intervention led to an enormous state-run insurance system with a $2.5-billion deficit. Don't believe no-fault opponents when they promise premium reductions without fundamental reform. Only Prop 104 enacts comprehensive reform, through no-fault and other cost-control mechanisms, to regulate the costs driving up insurance rates. PROP 104 will: · GUARANTEE prompt payment of no-fault claims from your own insurance company. · PROHIBIT insurers from canceling your policy or Against Proposition 104 raising your rates solely because i of a no-fault claim. · REDUCE premiums by requiring all auto insurers to cut rates for basic personal injury coverage by an average of 20%. This will result in an immediate overall average premium reduction of 7% to 17%. Don't be misled by arguments that lump all no-fault plans together. Some no-fault law~ have not worked because they were WATERED DOWN BY TRIAL LAW- YERS. PROP 104 is modeled after ihe most successful no-fault laws nationwide. ONLY PROP 104 REDUCES RAT_~S IMMEDIATELY AND HOLDS THEM DOWN IN THE FUTURE THROUGH FUNDAMENTAL REFORM. VOTE YES on PROP 104. RICHARD U. ROBISON Presideng Southern California Auto Club BETTY SMITH Former Chair, California Democratic Party JIM NIELSEN State Senator, 4th District Vice Chair, Senate Insurance Claims and Corporations Committee G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 105 Disclosures to Consumers, Voters, Investors. Initiative Statute Official Title and Summary Prepared by the Attorney General DISCLOSURES TO CONSUMERS, VOTERS, INVESTORS. INITIATIVE STATUTE. Measure requires, as specified, the following disclosures: (1) advertisers' warnings regarding disposal of toxic household products with exceptions; (2) notices regarding coverage limits and insurance offeror's identity on insurance policies to supplement Medicare; (3) disclosures in nursing home contracts and advertisements regarding access to State Ombudsman and facility violation information; (4) disclosures by initiative and referendum campaign committees as to contributors; and (5) disclosures by corporations selliog stocks in state whether or not they are doing business in S.o,uth Africa or with any person or group located there~Provides fines for violations. Summary of Legislative Analyst s estimate of net state and local government fiscal impact: The net annual state costs could be up to $550,000 when the measure is fully implemented for toll-free telephone lines, development of regulations, and recordkeeping. Costs would be offset by unknown amount of fines from violators. Analysis by the Legislative Analyst Proposal This measure would require certain information to be disclosed with respect to (1) household toxic products, (2) seniors' health 'insurance, (3) nursing homes, (4) certain statewide bfillot measures (initiatives and refer- enda), and (5) corporations that sell stock in California. 1. Household ToXic Products. This measure would require businesses that advertise a household toxic prod- uct to warn the public that the product should not be Placed in the trash or poured down the drain. Small or occasional advertisers, and household products that con- rain pesticides, wo~ld not be subject to the warning requirements. "Household toxic product" and the nature and number of the warnings would be defined by the State Depart- ment of Health Services by regulation. The measure probably would affect household products, such as paints and motor oil, but would exclude bleaches and disinfec- tants, which are generally treated as pesticides under state or federal ]aw. The measure would require the State Department of Health Services to establish a toll-free telephone line for providing information about safe disposal of household toxic products. The t011-free number would be included in the warning. 2. Seniors' Health Insurance. Existing federal and .I state law regulates insurance policies that supplement or cover gaps in health insurance provided under the fed- eral Medicare program. These policies are commonly referred to as "medigap" insurance policies. This measure would require insurance companies to disclose certain information regarding the sale and content of medigap insurance policies. Specifically, it: a. Requires public advertisements for medigap insur- ance containing the name of an organization which resembles that of a government agency, a nonprofit charitable entity, or a seniors' organization to dis- close that the intent of the organization is to sell insurance as a business. b. Requires medigap insurance policies to disclose that the coverage may duplicate benefits available under another medigap insurance policy. c. Requires medigap insurance policies to make certain 106 disclosures regarding (1) the extent of coverage provided and (2) the relationship between premi- ums received and claims paid. d. Requires medigap insurance policies to inform con- sumers that they may call the toll-free number of the Department of Insurance, indicated on the policy, for more information about medigap insurance. 3. Nursing Homes. Currently, the state has two pro- grams designed to protect the rights of patients in nursing homes. First, under the Long-Term Care Ombudsman program, volunteers investigate and resolve complaints and act as advocates on behalf of nursing home residents. Second, the State Department of Health Services is required to inspect nursing homes to check whether they comply with laws and regulations. If a nursing home violates a law or regulation and a patient dies or could have suffered serious harm because of the violation, the department may issue a citation and impose a civil penalty. Under existing law, the department is required to develop a consumer information service system to provide updated and accurate information to the general public regarding nursing homes, including a history of citations and complaints for particular facilities. This measure would require nursing homes to state on their admission contracts and advertisements that more information about the facility is available at the State Ombudsman's office. The measure also would require nursing homes that have the most serious records of violations, as compiled by the State Department of Health Services, to state on their admission contracts and advertisements that a record of the citations the nursing home has received is posted at the nursing home and can be obtained from the department. 4. Statewide Ballot Measures. This measure would require any proponent or opponent of specified statewide ballot measures (initiatives and referenda) to disclose in any advertisement certain major sources of financial contributions. The measure would establish various cate- gories of ballot campaign contributors for purposes of determining whether the contributors must be identified as major funding sources. 5. Corporations That Sell Stock in California. This measure would require any corporation selling stocks or securities in California to disclose whether it is doing G88 business in South Africa or with any person or group located in South Africa. Specifically, it would require corporations to file a disclosure notice with the Secretary of State, prior to selling stock or securities in California. It would require that this information be made available by the Secretary of State. This measure would allow certain court actions to be brought to enforce its provisions. Fines resulting from these actions would be deposited in the State General Fund. Fiscal Effect Text of Proposed Law This initiative measure is submitted to the people in accordance with ability insurance policies and nonprofi't hospi the provisions of Article II, Section 8 of the Constitution. which are designed primarily to supplement This initiative measure adds sections to the Government Code and issued on a group or individual basis. The adoption of this measure wodld result in costs to various state agencies to operate toll-~ree telephone lines, develop regulations, and keep recolds. The net annual costs could be up to $550,000 when the measure is fully implemented. These costs would be partially offset by unknown revenues from fines charged to people or companies who violate the disclosur~ requirements. !al service plan contracts Medicare and which are the Insurance Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW PUBLIC'S RIGHT TO KNOW A CT SECTION 1. The people of California find that the lack of truth in advertising strongly reduces the public's right to accurate information, resulting in harm to their health and finances. The public's right to know this information will help consumers to make good decisions on the vital matters addressed in this initiative: · Household toxic products · Fraudulent health insurance sales to senior citizens · Nursing home abuses, which deprive seniors of the right to safety and dignity that they have earned · The true sources of campaign funds for initiatives · Disclosure of business dealings with apartheid South Africa The people therefore declare their rights as consumers to make informed, intelligent decisions in these important areas, free from fraud or deceit. The people hereby enact the provisions of this initiative in further- ance of these rights. SECTION 2. Article 10 (commencing with Section 66799) is added to Chapter 3 of Title 7.3 of the Government Code, to read: Article 10. Household Toxic Products Disclosure 66799. (a ) Any business which advertises a household toxic product intended for use by the general public shall provide clear and reason- able warning that the product should not be placed in the trash unless completely empty, or poured down the drain. (b) "Advertises" means mass-media advertisements such as elec- tronic media, print, outdoor, and direct mail, but not including posters or displays in a retail store. (c) "Clear and reasonable warning" may be provided by general methods such as labels on household toxic products, posting of notices, placing notices in public news media, and similar methods. The warning may refer to the specific product, or to household toxic products in general. The warning shall notify consumers that they may call the Department of Health Service's toll-free number for informa- tion about proper disposal of household toxic products, and shall state the number. 66799.1. This section shall not apply to household use pesticides subject to storage and labelling requirements pursuant to the Food and Agricultural Code or the Federal Insecticide, Fungicide, and Rodenti- cide Act. 66799.2. Small or incidental advertisers of household toxic products are exempt from this Article provided that any advertiser with an annual California advertising budget for household toxic products of fifty thousand dollars ($50,000.00) or more shall not be exempted. 66799.3. The Department of Health Services shah issue regulations to implement this Article, including but not limited to defining "household toxic products" (Section 66799), defining the nature and quantity of warnings required (Section 66799(c)) and defining small advertisers (Section 66799.2). 66799.4. The remedies for violations of this Article are as provided in Government Code Section 12269. SECTION 3. Sections 10195.1-10195.8 are added to the Insurance Code, to read: Seniors Health Insurance Disclosure 10195.1. "Insurance policies to supplement Medicare" refers to dis- G88 10195.2. Public advertisements for insurance policies to supplement Medicare that contain the name of an orga~lization that resembles a government agency, nonprofit or charitabl~ institution, or seniors organization shall contain the following notice, if applicable:" (name of organization) is or is associated with a business which sells insurance." 10195.3. All insurance policies to supplemeOt Medicare shall contain the following notice on the cover page of ~he outline of coverage: "Caution: This policy may include coverage that totally or partly duplicates your other Medicare supplemental !insurance coverage." 10195.4. All insurance policies to supplement Medicare shall disclose on the cover page of the outline of coverage whether the coverage offered is "extensive", "moderate'; or "limited." The Insurance Com- missioner shall issue regulations setting minir~um standards for which types of policies are "extensive", "moderate",br "limited." 10195.5. All insurance policies to suppleme~t Medicare shall disclose on the cover page of the outline of coverage the loss ratio of the policy during the preceding year. I 10195.6. All insurance policies to supplement Medicare shall disclose on the cover page of the outline of coverage that consumers may call the Department of Insurance's toll-free numbe~ for information about buying insurance policies to supplement Med"care, and shall state the number. , 10195.7. The Insurance Commissioner shqll issue regulations to implement this Section. ' 10195.8. The remedies for violation of this Section are as provided in Government Code Section 12269. ~ SECTION 4. Chapter 3.95 (commencing with Section 1599.85) is added to Division 2 of the Health and Safety ~ode, to read: CHAPTER 3.95. SENIORS NURSING HOME DISCLOSURE 1599.85. Long-term health care facilities must prominentl!/ and clearly display ~he following notice on all co~tracts of admission, and all advertisements used to solicit consumers to enter into contracts of admission: "For more information about our facility, you may call the State Ombudsman 's Office at (insert toll-free number)." 1599.86. "Contract of admission," as used in this chapter, includes all documents which a resident or his or her representative must sign at the time of, or as a condition of, admission to a long-term care health facility as defined in Health and Safety Code Section 1326. 1599.87. The Department of Health Servicer (the Department) shall compile a list of approximately twenty five q~ (25%) of the long-term health care facilities with the most serious records of violations of laws or regulations by virtue of proven or admitted Class AA and Class A citations. Those facilities on this list shall include this statement on all contracts of admission, and all advertisement~ used to solicit consumers to enter into contracts of admission: "This facility's record of citations is posted at the facility, and a copy maO be obtained from the Department of Health Services." 1599.88. The Department shall issue regulations to implement this Chapter, including permitting one disclosure tO satisfy the requirements of Section 1599.85for all advertisements on the same page. 1599.89. The remedies for violations of this Chapter are as provided in Government Code Section 12269. i SECTION 5. Article 5 (commencing with Section 84501) is added to Chapter 4 of Title 9 of the Government Codq, to read: Article 5. Truth in Initiative ~dvertising 84501. "Initiative" means a qualified stateWide initiative measure or a qualified statewide referendum measure. Continued on page 157 107 105 DiSclosures to Consumers, Voters, Investors. Initiative Statute Argument in Favor of Proposition 105 . PROPOSITION 105! THE CONSUMER RIGHT-TO-KNOW INITIATIVE, WILL PI~OTECT CONSUMERS FROM ADVER- TISING DECEPTIONS, HALF-TRUTHS, AND EVASIONS, AND WILL HELP US ALL TO MAKE INFORMED, INTEL- LIGENT DECISIONS. The lack of truth in advertising harms the health and finances of consumers. But special interest groups have blocked legisla- tion that would require truthful advertising. Now it's up to us. We can protect ourSelves--consumers, seniors, the environ- ment-by voting for Proposition 105 to enforce our right to: · Warnings againstpouring toxic household products down the drain, to avoid polluting our water supply. · Understandable i~surance policy information to stop sales to seniors of fraudUlent "medigap" insurance. · Disclosure about Uursing home practices and safety viola- tions so that seniOrs and their families can make choices which will assure the safety and dignity that seniors have earned. · Advertising about linitiatives which will disclose who really is paying for the advertisements. · Stock purchasers being able to find out whether companies are doing business in South Africa. Proposition 105 doesn't interfere with the way companies do business. It doesn't make them do anything--except tell the truth in their advertising. It doesn't stop them from doing anything--except lying to the public. IT SIMPLY REQUIRES THAT CONSUMERS BE TOLD THE TRUTH, so they ~an make their decisions based on facts, not on fraud and deceit. The Consumer Right-to-Know Initiative will protect consum- ers, seniors, and our en¥ironment from shady practices, without creating an expensive bureaucracy. Proposition' 105 targets "bad apple" businesses, and protects honest businesses from the unfair competition of those who would lie to sell their Products. The special interestS, will do anything to stop Proposition 105--anything to stop them from being forced to tell consumers the truth. They will try to confuse voters with meaningless objections. But the facts remain unchanged: Proposition 105's only purpose is to require that advertisers tell the truth to consum- ers. So ask yourself: Why would any honest business object to being asked to tell the truth? What do opponents have to hide? DON'T BE FOOLED BY THE DECEPTIONS OF THE SPECIAL INTERESTS! Your vote for Proposition 105 will: · Protect our water supplies and landfills from pollution caused by unsafe disposal of toxic household products. · Protect seniors from unsafe nursing homes, where 59 patients have died because of bad care in the last three years alone. · Stop the supplemental "medigap" insurance scams which have stolen $300,000,000 a year from seniors. One example: an elderly Santa Rosa couple was sold 20 policies costing $13,000 per year. The stakes are much too high to continue playing with a deck that's stacked against consumers. PLEASE JOIN WITH CONSUMER, SENIOR, AND ENVI- RONMENTAL GROUPS IN SUPPORTING THE CONSUMER RIGHT-TO-KNOW INITIATIVE. Proposition 105 is a very reasonable solution to some very real problems. Its aim is simple: to protect the public. The special interests w,.on't do it: ! The politicians haven t done it/ Now we can do it ourselves/ VOTE YES ON THE CONSUMER RIGHT-TO-KNOW INI- TIATIVE. VOTE YES ON PROPOSITION 105! JIM ROGERS Presideng CUBE (Consumers United for Reform) LOIS McKNIGHT Director, Nursing Home Ombudsman Program of Contra Costa County Member, Board of Directors, East Bay Elder Abuse Prevention Consortium BILL SHIREMAN Executive Director, Californians Against Waste Chairman, ECCO (Environmental and Commerce Coalition) Rebuttal to Argument in Favor of Proposition 105 This rebuttal addreSSes the household products disposal por- tion of Proposition 105. It is virtually impossible for any one person or group to speak for or against the many diverse issues which are covered in Proposition 105 and which have failed in the past. Proposition 205 is an oversimplistic and misleading approach to protecting our environment. Household products are not a source of Pollution to water supplies, as recent research in Los Angeles County and several other areas around the country have shown. This initiative will not provide protec- tion for your environment--it will only cost the taxpayers and consumers much money. Protecting our groundwater should be left to the current legislative study, which has been comprehen- sively and effectively addressing the question. Today's consumer products are safe, efficient, convenient and provide valuable benefits for our homes, schools, and other public facilities. Proposition 105 fails to tell Us what products will require new warnings, and leaves it up to the statebureaucracy to decide--an expensive process that will have questionable results. Proposition 105 supporters have incorrectly confused house- hold health and safety With truth-in-advertising issues. On the household toxics issue, Prop 105 should be rejected by voters as false advertising: What it says it will accomplish is not what voters will get! VOTE NO ON PROP 105. JIM CAUDILL Household Products Disposal Council 108 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency' G88 Disclosures to Consumers, Voters, Investors. Initiative Statute Argument Against Proposition 105 The household toxic products disposal provision of the Con- sumer Disclosure Initiative addresses an issue that is already being handled by your state government. The Galifornia Waste Management Board is acting on the household hazardous waste issue under the authority of current Galifornia law. Under the board, an advisory committee of representatives of state and local government, citizens, environ- mental groups and industry was formed to determine Galifor- nia's role in residential waste management, the structuring of special collection programs and educational materials for schools. This effort is a bipartisan and balanced approach which will evaluate the issue and make appropriate recommendations to the State of Galifornia. 105 The household product provision is therefore unnec- essary. ' · Most consumers buy only products they need and use them completely. ~ · Scientific evidence shows that disposal of household prod- uets has virtually no adverse impactI on the environment. · Increased costs associated with provicling needless warnings will bepassed on to consumers just as if the Legislature had enaeteda tax on the products. ' · Money spent in implementing this provision will be a waste of tax dollars. ' Accordingly, you should VOTE NO on the Consumer Disclo- sure Initiative. JAMES GAUDILL Household Products Disposal Council Rebuttal to Argument PROPOSITION 105 PROTECTS CONSUMERS FROM DE- CEPTIVE ADVERTISEMENTS WHICH HARM THE HEALTI~ AND FINANCES OF CONSUMERS. For instance, the Consumer Right-to-Know Initiative requires warnings against pouring toxic household products down the drain, to avoid polluting our water supplies. The special interests claim this is too much safety. The consumer, senior, environmental coalition supporting Proposition 105 says we can't be too safe from toxics. Contrary to the opponents' claims, this truth-in-advertising initiative won't pass on costs to consumers. It doesn't cost advertisers any more to tell the truth than to lie~ Further, Proposition 105 won't raise taxes or create expensive bureaucracy. Any administrative costs should be paid from fines collected from violators. So ask yours,elf: Why all the meaningless objections from the toxics industry s front group? Because the special interests are scared of having to come clean with consumers/ DONq~ BE DECEIVED: VOTE YES ON THE CONSUMER RIGHT-TO-KNOW INITIATIVE! Proposition 105 not only protects our water supply from Against Proposition 105 toxics, it also protects the elderly. Seniors' gro,u,,ps suppor,t, Proposition 105 because it tells nurs- ing homes and medigap' insurance companies who rip off and abuse the elderly: WE MUST PROTECT THE HEALTH OF SENIORS-- NOT THE WEALTH OF COMPANIES THAT VICTIMIZE SE- NIORS AND THEIR FAMILIES. Proposition 105 doesn't require anyone to do anything~x; cept tell the truth. Why would anyone oppose that--except those with something to hide? PLEASE JOIN WITH CONSUMER, SENIOR, AND ENVI- RONMENTAL GBOUPS IN SUPPORTING THE CONSUMER RIGHT- TO-KNO W INITIATIVE! VOTE YES ON PROPOSITION 105/ ~ GEORGE SANDY Presideng Congress of California Seniors KEN MCELDOWNEY Executive Director, Consumer Action MARGARET BYRNE Administrator, Bay Area Advocates for Nursing Home Reform C~ ~,rguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency 109 Attorney Fees Limit for Tort Claims. Initiative Statute Official Title and Summary Prepared by the Attorney General ATTORNEY FEES LIMIT FOR TORT CLAIMS. INITIATIVE STATUTE. Measure places limit on amount of a contingency fee an attorney may collect for representing a plaintiff in connection with a tort claim. The fee may be no more than 25 percent of first $50,000 recovered, no more than 15 percent of next $50,000 recovered, and no more than 10 percent of amount recovered above $100,000. The court may revieW the fee and reduce it below the stated limits if it is not reasonable and fair. Defines amount recovered to calculate fee limitations. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Fiscal impact on state and local governments is unknown and would depend on how attorneys and their clients respond to these contingency limits. The response could affect the number of cases filed and settled, and the size of awards. Analysis by the Legislative Analyst Background An injured party may sue to recover damages for injury, death, or property loss. The amount of damages to be paid may be determined by negotiation, court trial, or arbitration. These types of cases are referred to as "tort" cases. Typically tort cases are handled on a "contingency fee" basis, which means that the attorney is paid only if the case is won or settled in favor of the client. Statutory limitations on these fees apply only to medical malprac- t-ice cases. Current law limits attorney contingency fees in medi- cal malpractice cases to the following: (1) 40 percent of the first $50,000 recovered for damages; (9.) 33.3 percent of the next $50,000 recovered; (3) 9.5 percent of the next $500,000 recovered; and (4) 15 percent of any amount recovered which exceeds $600,000. Proposal This measure places limits on the amount of contin- gency fees attorneys could charge clients for their ser- vices in tort cases, including medical malpractice cases. It would limit attorney contingency fees to the following: (1) 9_5 percent of the first $50,000 recovered; (9.) 15 percent of the next $50,000 recovered; and (3) 10 percent of the amount recovered above $100,000. The measure authorizes the court to conduct a hearing to determine whether a proposed fee is reasonable and fair. The court may reduce the fee below the limits proposed in this measure, but it may not increase the fee above these limits. Fiscal Effect The fiscal impact of this measure on state and local governments is unknown, and would depend largely on how attorneys and their clients respond to these contin- gency fee limits. The response could affect the number of cases filed, the number settled before trial, and the size of the awards. 110 Text of Proposed Law This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution. This initiative measure adds a section to the Business and Professions Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW TITLE. This shall be known as the Lawyers Fair Fee Act. FINDINGS AND DECLARATION. Attorneys who represent injured persons in most tort claims charge a fee based on a percentage of the amount recovered, whether by settlement or judgment. Contin- gency fees of up to 40% are common. The people of California find that excessively high contingency fees deprive injured persons of too large a share of the amounts they recover on tort claims. Ade- quate legal representation will be available to injured persons if attorneys'fees are limited as provided herein. LIMIT ATTORNEY FEES. Section 6146.1 of the Business and Professions Code is added to read: 6146.1. (a) An attorney shall not contract for or collect a contingency fee in connection with a tort claim, including a claim covered by Section 6146, in excess of the following limits: (1) Twenty-five percent of the first fifty thousand dollars ($50,000) recovered. (2) Fifteen percent of the next fifty thousand dollars ($50,000) recovered. (3) Ten percent of the amount of recovery above one hundred thousand dollars ($100,000). The limitations shall apply regardless of whether the recovery is by settlement, arbitration, or judgment. (b) The court, in any action filed seeking damages based on a tort claim, including a claim covered by Section 6146, may on its motion, or on the motion of a party, review the contingency feel arrangement upon notice and hearing to determine iwhether the fee is reasonable and fair and may order a fee less than the amount set out in subdivision (a). The fee ordered by the court shall not exceed the amount set out in subdivision (a). (c) If periodic payments are awarded to the plaintiff pursuant to Section 667. 7 of the Code of Civil Procedure, the court shall place a total value' on these payments based upon the projected life expectancy of the plaintiff and include this total amount in computing the award from which attorney's fees are calculated under this section. (d) For purposes of this section, "mcovered"means the net sum recovered after deducting any disbursements or costs incurred in connection with prosecution or settle- ment of the claim. Costs of medical care incurred by the plaintiff and the attorney's office-overhead costs or charges are not deductible disbursements or costs for such purpose. (e) The provisions of this section shall not be amended by the Legislature except by statute passed in each house by roll call vote entered in the journal, two-thirds of the membership concurring, or by a statute that becomes effective only when approved by the electorate. G88 111 106 Attorney Fees Limit for Tort Claims. Initiative Statute Argument in Favor VOTE FOR PROP 106 TO LIMIT ATTORNEY CON- TINGENCY FEES AND SECURE MORE MONEY FOR VICTIMS. PROP 106 reforms our legal system by limiting the amount lawyers can take from their clients' award, channeling more money to victims and less to attorneys. Our current legM system allows lawyers to routinely collect up to 40% of an injured victim's total award. In many cases, attorneys collect much more. PROP 106 limits attorney contingency fees in all tort cases to: ~ · no more than % of any award up to $50,000. · no more than 15% of that portion of .an award between $50,000 and $100,000. · no more than 10% of an award above $100,000. Currently, the Sthte Bar of California, an organization that lobbies for attorney interests, is responsible for managing lawyer conduct and fees. Under current rules, the State Bar routinely recognizes 40% as an appropriate fee and no fee is too high unless it is "unconscionable," According to the State Bar, an "unconscionable" fee is: "so exorbitant iand wholly disproportionate to the services performed as to shock the conscience of lawyers of ordinary prudence practicing in the same community." We wonder just What shocks the conscience of a lawyer of ordinary prudence, since contingency fees of 50% and more are upheld, i PROP 106 WILL RETURN COURT AWARDS TO VICTIMS. More money should go to compensate ,accident victims. Less should go toward padding lawyers wallets. Today, after paying attorney fees, accident victims often don't of Proposition 106 have enough money left over to pay their medical expenses or rehabilitation costs. We cannot continue to allow lawyers to make outrageous profits at the expense of accident victims. Compare these facts: In 1987, the Lawyer's Almanac reports the starting salary for a law school graduate at top Los Angeles firms was $52,000. Don't believe lawyers when they say that they can't work for less money. There are over 106,000 lawyers in California. If we limit attorney contingency fees, every good case will still be presented to the court by competent lawyers; the only difference is that lawyers will be prohibited from charging their clients excessive fees. The federal government and several other states have recognized the need to cap attorney contingency fees. Nearly 40 years ago the federal government enacted contingency fee limitations in cases where it is a defen- dant. Florida, New York and California limit contingency fees in medical malpractice cases, and last year Connecti- cutpassed legislation similar to PROP 106. PROP 106 will reform our wasteful tort system by directing more money to those who need it most: accident victims and other wronged claimants. PLEASE VOTE TO LIMIT ATTORNEY CONTIN- GENCY FEES. VOTE YES on PROP 106. TOM McCLINTOCK Member of the Assembly, 36th District Vice Chairman, Assembly Judiciary Committee ALAN F. SHUGART Chairman of the Board and CEO, Seagate Technology JOHN FLEMING University of California Law Professor Rebuttal to Argument in Don't let insurance companies trick you. They wrote and financed Proposition 106 to make it harder for you to make them pay up. They plan to wreck an effective system that allows seriously injured Americans to pay their lawyers ONLY IF THEY WIN--AND NOTHING IF THEY LOSE! The negotiable contingent fee permits Californians of modest means to bring wrongdoers to justice without having to pay fat hourly lawyers' fees. That's why scholars call the contingent fee the key to the courtroom door for average AmericanS. Even a major insurance executive said, in the July 19 Los Angeles Times, 106 "... will bar public access to the courts." Proposition 106 deviously stifles your ability to hire the smartest, most determined lawyers for you and your children against drunk drivers and manufacturers of defective cars, cancerous chemicals and dangerous pre- scription drugs. It will result in more wrongdoers getting off and more insurance companies not paying up. Favor of Proposition 106 In the June 2 San Diego Union, insurance industry executive George Tye said Proposition 106 won't reduce insurance rates. Notice that 106 doesn't restrict fees that insurance companies pay their lawyers to defend wrongdoers. So while they can hire the best lawyers to fight you, you couldn't afford to do the same. That's the trick of 106. The contingent fee allowed thousands of Americans to prevail against drunk drivers, and asbestos, hazardous household products and Pinto fuel tank manufacturers. Such victories make companies pay more attention to their safety obligations toward all Americans. Vote NO. RALPH NADER Consumer Advocate HEATHER BECHTEL MAURER Executive Director, Asbestos Victims of America GENE PATFERSON Executive Director, National Victim Center 112 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency G88 Attorney Fees Limit for Tort Clmms. Initiative Statute Argument Against Proposition 10~ Don't be misled/Proposition 106 is the most insidious insurance industry-sponsored initiative on this ballot. The insurance industry wants caps on legal fees. But whose fees? NOT the fees paid to lawyers who work for insurance companies, NOT manufacturers' law- yers, NOT large corporation lawyers, NOT criminals' lawyers. The ONLY lawyer whose fees would be limited would be YOURS--the lawyer YOU HIRE to help you recover damages from a drunk driver, an insurance company that won't pay you what it owes you or a shoddy manufac- turer. YOUR lawyer, NOT THEIRS! Written by insurance company lawyers to confuse California voters and obscure the real issuesminsuranee reform and accountability--Proposition 106 would crip- ple the ability of crime and accident victims to retain qualified legal counsel. Proposition 106 would hurt, among others, drunk driv- ing victims who would be hindered from seeking justice from the offenders. Proposition 106 is unfair/It cleverly restricts YOUR ability to fight for your rights, but does nothing to limit the amount insurance companies can pay THEIR attor- neys to fight you. Proposition 106 puts a straitjacket on the average Californian's ability to challenge insurance companies that refuse to pay benefits on legitimate claims. It also allows unscruptjlous insurance companies' lawyers to bully victims and their families (who use the contingency fee system) through intimidation and delaying tactics. Why are insurance companies behind Proposition 1067 Because the insurers who are bankrolling this initiative know.that if they stack the deck against policyholders by restricting legal challenges, they can increase their profits. After all, the fewer claims they pay, the higher 106 their profits. In 1987 alone, they made a record $13.7 billion! They should lower your rates without restricting your rights. If Proposition 106 passes, CaliforniAns would lose valu- able rights ~n exchange for empty promxses. Don t be taken in by the insurance companieS' secret strategy to divert your attention from the real lissues--their outra- geous premiums and obscene profRs--by making the victim's attorney their scapegoat. Proposition 106 is another "fine-prhat" insurance seam restricting the rights of policyholder? to hold insurance companies accountable--even if those actions involve legitimate claims against drunk or n~gligent drivers. Will this initiative save you money?! NO! The insurance companies admit it. But this initiative could cost you money/If you lack proper recourse in demanding that [oOUr insurance company reimburse ~,ou fairly for your sses, you may never receive the compensation to which you are entitled. You may be letting!a drunk driver off the hook/ Proposition 106 is discriminatory and unfair. It stacks the deck in favor of insurance companies AT YOUR EXPENSE by allowing them to hire whatever legal talent they want at whatever fee they want to pay while innocent victims would lose such rights. If you think the fight against insui'ance companies is unfair today, just consider what will happen if Proposition 106 passes. The free-choice system is essential for parents, victims and consumers. Don't put your loved Ones and yourself in needless jeopardy/Vote NO on PR OpOSITION 106. JUDITH ROWLAND Executive Director, California Center on Victimology TOM BRADLEY ' Mayor of Los Angeles : Rebuttal to Argument DON'T BE FOOLED BY THE TRIAL LAWYERS' PLEA TO PROTECT THEIR EXORBITANT CONTIN- GENCY FEES. VOTE YES ON PROP 106. Injured victims will have no difficulty finding proper legal representation. PROP ,106 protects victims from excessive contingency fees. Trial lawyers routinely take up to 40% or more of an injured victim's award. PROP 106 will give more money to victims by reducing excessive contingency fees. Vote YES on PROP 106. Trial lawyers protest that they can't work for less than they make now, but the facts show otherwise. Don't believe trial lawyers when they claim they cannot work for less money. California has more than 106,000 attorneys--one out of seven nationwide. And their ranks continue to swell. The number of lawyers licensed to practice in Los Angeles Against Proposition 106 County has multiplied two and a half times since 1970 and has increased by 35% since 1980! , California, New York and Florida already have fee limitations in medical malpractice eases, and injured victims have not gone without representation. TRIAL LAWYERS ARE BENT ON DEFEATING PROP 106 TO PROTECT THEIR EXCESSIVE FEES-- NOT TO SAFEGUARD VICTIMS' RIGHTS. DON'T BE TRICKED. Please VOTE YES on PROP 106 to ensure that injured victimsmnot their attorneys~receive compensation. Vote YES on PROP 106. JERRY EAVES Member of the AssemblT, 66th District JA<MES NIELSEN State Senator, 4th District REGIS McKENNA Chairman of the Board and CEO, Regis McKenna, Inc. G88 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any ~official agency 113 Proposition 79: Text of Proposed Law Continued from page ~ 17698.60. In computing the net interest cost under Section 16754 of the Government Code, i~terest shall be computed from the date of the bonds or the last preceding interest payment date, whichever is latest, to the respective maturity dates of the bonds then offered for sale at the coupon rate or rates bpecified in the bid, the computation to be made on a 360-day-year basis. 17698.70. The committee may authorize the Treasurer to sell all or any part of the bonds herein authorized at such time or times as may be fixed by the Treasurer. 17698.80. All proceeds from the sale of the bonds herein authorized deposited in the fund, as provided in Section 16757 of the Government Code, except those derived from premium and accrued interest, shall be available for the purpost3 herein provided, but shall not be available for transfer to the General Fund pursuant to Section 17698.25 to pay principal and interest on bonds. 17698.90. With respect to the proceeds of bonds authorized by this chapter, all provisions of Chapter 22 (commencing with Section 17700) shall apply. 17698.93. Any bond$ issued and sold pursuant to this chapter may be refunded by the issuance and sale or exchange of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title £ of the Government Code. The approval by the electorg of this state of the issuance and sale of bonds under this chapter inaludes approval of the issuance and sale or Proposition 80: Text of Proposed Law Continued from page 13 has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. 7411. Any bonds issued and sold pursuant to this chapter may be refunded by the issuanae of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division £ of Title ~ of the Government Code. Approval by the electors of the state for the issuance oflbonds shall include the approval of the issuance of any bonds issued to refund any bonds originally issued or any Proposition 81: Tbxt of Proposed Law Continued from page 17 (3) An agreement by the public agency, (A ) to proceed expeditiously with, and complete, the project, (B) to commence operation of the project upon completion thereof, and to properly operate and maintain the project in accordance with the applicable provisions of law, (C) to apply for, and make reasonable efforts to secure, federal assistance for the project, (D) to secure approval of the department and of the State Department of Health Services before applying for federal assistance in order to maximize and best utilize the amounts _of that assistance available, and (E) to provide for payment of the public agency's share of the cost of the project, if any. 14013. ApplicationS for loans and grants under this chapter shall be made to the department in the form and with the supporting material as prescribed by the department. 14014. The department shall prepare an annual report on all grant commitments made, or grant contracts entered into, pursuant to this chapter. The report shall be filed with the Legislature, if it is in session or, if it is not in session, iwith the Joint Bules Committee. 'The report shall be filed on or before Je~nuary 31 of each year for grant commitments made, or grant contraets entered into, by the department during the previous calendar year. 14015. (a) Loans and grants may be made only,for projects for domestic water systemat The State Department of Health Services may make reasonable allotOance for future water supply needs and may provide for additional capacity when excessive costs would be incurred by later enlargement. The loans and grants may be made for all, or any part, of the cost of constructing, improving, or rehabilitating any system when, in the judgment of the State Department of Health Services, improvement or rehabilitation is necessary to provide pure, wholesome, and potable water in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes. Thee State Department of Health Services shall determine and notify applicants of eligibility of components requested to be included in the proposed project. The department shall use this determination as a basis for disbursin~ funds. No single public agency shall receive grants pursu~ant to this ctmpter totaling more than four hundred thousand dollars ($400,000). Loans maybe made to provide for the purchase of a water system or the purchas.q of watershed lands. No loan to an individual supplier shall exceed the sum of five million dollars ($$,000,000), unless 114 exchange of any bonds issued to refund either those bonds or any previously issued refunding bonds. 17698.95. Out of the first money realized from the sale of bonds under this chapter, there shall be repaid any moneys advanced or loaned to the State School Building Lease-Purchase Fund under any act of the Legislature, together with interest provided for in that act. 17698.96. (a) Of the proceeds from the sale of bonds pursuant to this chdpter: (1) Not more than one hundred million dollars ($100,000,000) may be used for the reconstruction or modernization of facilities within the meaning of Chapter 22 (commencing with Section 17700). (2) Not more than twenty million dollars ($20,000,000) may be used for the purchase and installation of air-conditioning equipment and insulation materials pursuant to Section 42250.1. (3) Not more than one hundred million dollars (8100,000,000) may be used for the identification, assessment, and abatement of hazardous asbestos in school facilities. (b) Notwithstanding subdivision (a), in the event the board deter- mines at any time that the maximum amount made available pursuant to any of the paragraphs in that subdivision exceeds the amount necessary to fund the qualified recipients of the apportionment autho- rized under that paragraph, the board may expend any portion of that excess for the construction of new school facilities pursuant to Chapter 22 (commencing with Sectiqn 17700) or for any one or more of the purposes described in subdivision (a). previously issued refunding bonds. 7412. All proceeds fr_om the sale of bonds, except those derived from premiums and accrued interest, Shall be available for the purpose provided in Section 7406 but shall not be available for transfer, to the General Fund to pay the principal of and interest on bonds, The }honey in the fund may be expended only as herein provided. 7413. Money in the fund may only be expended pursuant to appropriations by the Legislature. 7414. The Legislature hereby ~'nds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. the Legislature by an act raises the limit specified in this section. (b) Upon receipt of an application for a grant or loan pursuant to this chapter, the department shall propose to the applicant improve- ments to the applicant's water development, distribution, and utiliza- tion system which will conserve water in a cost-effective manner. These improvements may include, but need not be limited to, leak detection and repair programs, valve repair and replacement meter calibration and replacement, physical improvements to achiev'~ corrosion control, distribution and installation of water conservation devices and fixtures, and other capital improvements which can be demonstrated to conserve water in a cost-effective manner. The department and applicant may agree to include these capital improvements in the grant or loan. Failure by the applicant to include water conservation capital improvements in the grant or loan application shall not be sufficient cause for the department to refu_se to make the grant or loan. 14016. An application for a grant pursuant to this chapter shall-not be approved by the department, unless the State Department of Health Services determines that the public agency is otherwise unable to meet minimum safe drinking water standards established pursuant to Chap- ter 7 (commencing with Section 4010) of Part I of Division $ of the Health and Safety Code. No grant shall be made by the department except upon approval by the State Department of Health Services of project plans submitted by the applicant and upon written approval by the State Department of Health Services that the proposed project is consistent with Chapter 7 (commencing with Section 4010) of Part I of Division 5 of the Health and Safety Code. 14017. First priority for grants shall be granted to public agencies having immediate health related problems, as certified by the State Department of Health Services. Additional high priority shall be granted to projects to correct immediate problems, as opposed to grants for construction of projects to meet future growth needs. 14018. First priority for loans shall be given to suppliers with the most critical public health problems. Priority for loans shall also be given to suppliers which have a lesser capability to reasonabl~t finance system improvements. 14019. Preliminar~ design work including a cost estimate for the project, shall be compteted before a loan or grant is awarded. Operation and maintenance costs shall-be the responsibility of the supplier and may not be considered as part of the project cost. Costs for planning and G88 preliminary engineering studies may be reimbursed following the receipt of a loan or grant, subject to approval blt the department and the State Department of Health Services. 14020. No application for a grant may be made pursuant to this chapter unless the public agency has also applied for a loan pursuant to this chapter. A public agency shall be eligible for a grant only to the extent that the department finds that the agency is found unable to repay the full costs of a loan. If the department has determined that the applicant is unable to repay the full costs of a loan, the applicant may also file for a grant. Upon receipt of a grant application, the department shall determine that portion vi_ the full costs that the applicant is capable _of repaying. Grant funds shall only be provided for that portion that the applicant is not capable of repajiing. 14021. Grant funas shall be expended by the public agency'within three years of the making of the grant. No grant funds may be expended b~t the public agencq unless the public agency is able to demonstrate to the department, within one year of the making of the grant, supported by an acceptable bid, that the amount to be expended for the project will be within 20 percent of the public agency's cost estimate for the project. 14022. For the purpose of administering this chapter, the total expenditures of the department and the State Department of Health Services may not exceed 5 percent of the total amount of the bonds authorized to be issued under this chapter. The department shall establish a reasonable schedule of administrative fees for loans, which fees shall be paid by the supplier pursuant to Section 14011 to reimburse the state for the costs of state administration of this cha'~ter. Charges incurred by the Attorney General in protecting the state's interests in the use and repayment of grant and loan funds under this chapter shall be paid from the proceeds of bond sales under this chapter. These charges shall not be paid from funds allocated for administrative purposes, but shall be treatea as a program expense not to exceed 1.5 percent of the total amount of the bonds authorized to be sold under this chapter. 14023. Repayment of all or part of the principal, which is the loan plus the administrative fee, may be deferred during a development period not exceeding 10 years within the maximum 50-year repayment period, when, in the department's judgment, the development period is justi~'ed under the circumstances. Interest on the principal shall not be deferred. Repayment of principal which is deferred during a develop- ment ?eriodmay, at the option of the supplier, be paid in annual instahments during the remainder of the loan repayment period. 14024. The department shall es[ablish the interest rate for loans made pursuant to this chapter at 50 percent of the true interest cost to the state of general obligation bonds issued most recently prior to the loan being executed. All loans made pursuant to this chapter shall carry the established interest rate for the calendar year in which the funds are committed to the loan, as of the date of the letter of commitment from the department, and shall remain at that interest rate for the duration of the loan. 14025. (a) The department, after public notice and hearing and with the concurrence of the State Department of Health Services, shall adopt rules and regulations necessary to carry out the purposes of this chapter. The regulations shall include, but not be limited to, criteria and procedures for establishing the eligibility of a supplier. (b) The department shall adopt rules and regulations that, in its judgment, will most effectively carry out this chapter in the public interest, to the end that the people of California are most efficiently and most economically provided supplies o/pure, wholesome, and potable domestic water. The rules and regulations may provide for the denial of funds when the purposes of this chapter may most economically and efficiently be attained by means other than the construction of the proposed project. (c) Notwithstanding subdivision (a) or any other provision of law, existing rules and regulations adopted by the department pursuant to the California Safe Drinking Water Bond Law of 1984 (Chapter 10.2 (commencing with Section 13810)) which are in effect on the effective date of this chapter, may, at the option of the department, be utilized upon voter approval of this chapter for purposes of implementing this chapter. The department, with the concurrence of the State Department of Health Services, may subsequently revise those rules and regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement provisions of this chapter which differ from Chapter 10.2 (commencing with Section 13810) or Chapter 10. 7 (commencing with Section 13895) or for any other reason to carry out the purposes of this chapter. 14026. The State Department of Health Services shall notify suppli- ers that may be eligible for loanspursuant to this chapter of (a) the purposes of this chapter and (b) the rules and regulations actopted by the department. 14027. (a) The State Department of Health Services, after public notice and hearing and with the advice of the department, shall, from time to time, establish a priority list of projects to be considered for financing. (b) Notwithstanding subdivision (a) or any other provision of law, the priority list established by the State Department of Health Services pursuant to the California Safe Drinking Water Bond Law of 1986 G88 (Chapter 10.7 (commencing with Section 13895)) in effect on the effective da te of this chapter ma y, a t the op tiop of the State Depa rtmen t of Health Services, be utilized upon voter approval of this chapter until the State Department _of Health Services adol~ts a new priority list. · 1.40,28. N~ot more thqn.t.w, enty-five million dollars ($25,000,000) of s~a~e loans for projects shall be authorized by the department in a single calendar quarter, No contract shall be approved by the department, unless the department finds that the supplier has the capacity to repay the loan amounts specified in the contract. At the request of the department, the Public Utilities Commission shall [.urnish comments concerning the ability of suppliers subject to its jurisdiction to finance the project from other Sources and the ability to repay the loan. 1d0£9. (a) As approved annually by the ~Legislature in the Budget Act, the department, notwithstanding Section 14022, may expend money repaid to the state pursuant to any contract executed under Section 14011 as necessary for the administration of contracts entered into by the department under this chapter, but those expenditures may not in an~l year exceed 1.5 percent of the amount repaid to the state in that year. Charges incurred by the Attorney General in protecting the state interest in the use and repayment of grant and loan funds under this chapter may be paid blt the department from these funds, but those charges may not exceed one-half of 1 percent of the amount repaid to the state in that year. Any of the above sums approved by the Legislature, but unexpended by the department at the end of any year, shall automatically revert to the General Fund. (b) Except as provided in subdivision (a), all money repaid to the state pursuant to any contract executed under Section 14011 shall be deposited in the General Fund and, when so deposited, shall be applied as a reimbursement to the General Fund on ,account o£ principal and interest on bonds issued pursuant to this cha~ter which has been paid from the General Fund. (c) The department may enter into contracts with suppliers of water for grants or short-term loans for the purIJose of investigating and identifying alternatives for system improvements. Any loans or grants pursuant to this section shall be made from the fund. No supplier may receive for a single investigation more than twen~-five thousand dollars ($25,000) in the form of a loan or gra~It pursuant to this section. The State Department of Health Services shall review all proposed investigations and shall determine if they are necessary and appropri- ate. (d) Any contract entered into pursuant to this section shall include terms and conditions consistent with this chapter, and any loan contract shall provide for a repayment period not to exceed 24 months. (e) Not more than $i'x million dollars ($6,000,000) may be expended for the purposes of this sect'on, of which not more than two million dollars ($2,000,000) may be used for grants to Public agencies. A loan or grant made for the purposes o_f this sectiol: shall not decrease the maximum amount of any other loan or'grant Which may be made under this chapter, Chapter 10.2 (commencing with Section 13810), Chapter 10.5 (commencing with Section 13850), Chapter 10.6 (commencing with Section 13880), or Chapter 10. 7 (commencing iwith Section 13895). Article 3. Fiscal Provisions 14030. Bonds in the total amount of seventy-five million dollars ($75,000,000), exclusive of refunding bonds i~ued pursuant to Section 14039, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 o_f the Government Code. All bonds herein authorized, which shall have been duly sold and delivered as herein provided, shall constitute valid and legally binding general obligations of the State of California, and the full faith and credit of the State of California are hereby pledged for the punctual payment of both principa? and interest thereof 14031. The bonds authorized by this chiipter shall be prepared, executed, issued, sold, paid, and redeemed ds provided in the State General Obligation Bond Law (Chapter 4 (cO, mmencing with Section 16720) .of Part 3 of Divtsion 4 of Title 2 of thei Government Code) and all o_f the provisions of that law apply to the bonds and to this ch'apter and are hereby incorporated in this chapter aS though set forth in full in this chapter. 14032. (a) Solely for the purpose o_f authorizing the issuance and sale, pursuant to the State General Obligationi Bond Law, of the bonds authorized by this chapter, the California Safe,Drinking Water Finance Committee is hereby created. For purposes of this chapter, the Califor- nia Safe Drinking Water Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Governor, the Treasurer the Director of Finance the Director..of Water Resources, and the Sidle Director of Health Se~ices, or their d~signated representatives. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Department of Water Resources is designated ,the "board." 14033. The committee shall determine wheiher or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Section 14011, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be 115 authorized and sold to carr[t out those actions progressively, and it is not necessary that all of the oonds authorized to be issued be sold at any time. 14034. There shall be .collected each year and in the same manner and at the same time as Other state revenue is collected, in addition to the ordinary revenues of ~he state, a sum in an amount required to pay the principal of and interest on, the bonds maturing each year, and it is hereby made the duty of all officers charged by law with any duty in regard to the collection of the revenue, to do and perform each and every act which shall be fiecessary to collect the additional sum. 14035. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for tt~e purpose~ of this chapter, an amount that will equal the total of the following.. (a)' The sum annually necessary to pay the principal of and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum which is i~ecessary to carry out the provisions of Section 14036, appropriated without regard to fiscal years. 14036. For the purposes of carrying out this chapter, the Director of Finance may, by writtefl order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which the Committee has, by resolution, authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be depoqited in the fund to be allocated by the board in accordance with this chapter. Any money made available under this section shall be returned by the board to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Proposition 82: TeXt of Proposed Law Continued from page 21 project, program, or facility. (3) An agreement by the local agency to proceed expeditiously with, and complete, the eligible project. (4) A provision that t.~ere shall be no moratorium or deferment on payments of principal or interest. (5) Localagencies see~ing a loan shall demonstrate, to the satisfac- tion of the departmeng that an adequate opportunity for public participation regarding the loan has been provided. (6) Any election held with respect to the loan shall include the entire local agency except where the agency proposes to accept the loan on behalf of a specified portion, or portions, of the agency, in which case the election shall be held in that portion or portions of the agency only. (7) Annual principal and interest payments shall commence not later than one year afte~ completion of any project and all loans shall be fully amortized not later than 50 years after project completion. (8) The recipient of a loan shall establish a dedicated source of revenue for repayment of the loan. f9) Any loans made pursuant to this chapter may be for a period of up' to 20 years. The interest rate for the loans made for projects to be funded pursuant to Section 12879.5 shall be set at a rate equal to the interest rate paid by tho state on the most recent sale of state general obligation bonds, with t~at rate to be computed according to the true interest cost method. The interest rate for loans made for projects to be funded pursuant to Section 12879.6 shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-te~th of l percent, the interest rate shall be set at the next higher multiple of one-tenth of l percent. The interest rate set fo_r each contract shall be applied throughout the repayment period of the contract. There shalll be a level annual repayment of princi?al and interest on the loans. The amount of the principal shall inctude the administrative fee described in subdivision (b). (d) All loans made pursuant to this chapter shall be subject to the approval of the Legislatrure by statute. (e) Applications for loans or financial participation by the state under this chapter shall be made to the department in the form and with the supporting material as may be prescribed by the department. (f) All money repaid to the state pursuant to any contract executed under this chapter, or under Section 13999.11, shall be deposited in the General Fund as reimbursement for payment of principal and interest on bonds authorized to be issued under this chapter or Chapter 15 (commencing with SectiOn 13999) that have been paid from the General Fund. ~ (g) As approved annually by the Legislature in the Budget Act, the department, notwithstanding subdivision (b), may expend money repaid to the state pursuant to any contract executed pursuant to this chapter as necessary forithe administration of contracts entered into by the department pursuant to this chapter. However, the expenditures may not in any year exCeed 1.5 percent of the amount repaid to the state in that year. Charges inCUrred by the Attorney General in protecting the state's interests in the Izse andrepayment of funds pursuant to this chapter may be paid by ithe department from these funds. However, the charges may not exceed ~.5 percent of the amount repaid to the state ~n that year. Any of the foregoing sums approved by the Legislature in the Investment Account from money received from the sale of bonds for the purpose of carrying out this chapter. 14037. All money deposited in the fund which is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 14038. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution disbursement of these proceeds is not subject to the ?imitations imposed by that article. 14039. Any bonds issued arid sold pursuant to this chapter may be refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 2 of Title 2 of the Government Code. Approval by the electors of the state for the issuance of these bonds shall include thc approval of any bonds issued to refundany bonds originally issued or previously issued refunding bonds. 14040. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out the provisions of this chapter. The amount of the request shall not exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute such documents as are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. Budget Act but unencumbered at the end of any year shall automati- cally revert to the General Fund. 12879.5. (a) The sum of twenty million dollars ($20,000,000) of the money in the fund shallbe deposited in the Local Water Projects Assistance Account and shall be available for loans to local agencies to aid in the construction of eligible projects. (b) No eligible project may receive more than five million dollars ($5,000,000) in loans from the department. . . (c) In the administration of this section, the department and tl~e California Water Commission shall give preference to projects involv- ing the development of new basic water supplies which may include the enlargement of existing dams and reservoirs, and for projects that will remedy existing water supply problems. The department and the California Water Commission shall set priority for loans pursuant to this section on the basis of the cost effectiveness df the proposed project, with the most cost-effective projects receiving highest priority. (d) If the water supply function of a dam and reservoir facility is operationally limited or eliminated for dam safety purposes, pursuant to Part 1 (commencing with Section 6000) of Division 3, the department and the California Water Commission may give consideration to projects which would rehabilitate the dam and reservoir for water supply purposes. The rehabilitation of facilities may include compara- ble replacement facilities. (e) A copy of each application for a loan pursuant to this section shall be transmitted by the department to the Department ofFish and Game the Department of Parks and Recreation, and the State Water Resou'r~es Control Board. A report on each application shall be prepared by the department and submitted to the Legislature, together with the comments of those agencies to which the application was transmitted. In the report, the department shall make findings as to the nature and extent of the statewide interest in the project, the urgency of the need, and the engineering feasibility, economic justification, and financial feasibility of the project. (f) Not later than January 31, 1990, and each year thereafter, the department shall submit to the Legislature an annual report on all loans made pursuant to this chapter. The report shall cover loans made by the department during the previous calendar year. (g) The department shall not make loans pursuant to this section for otherwise eligible projects whose benefits are more than 50 percent derived from hydroelectric generation, as determined by the depart- ment. (h) The department may make loans to local agencies, at the interest rates authorized pursuant to this chapter and pursuant to any terms and conditions as may be determined necessary by the department, for the purposes of financing feasibility studies of projects potentially eligible for funding pursuant to this section. No single potential project shall be eligible to receive more than five hundred thousand dollars ($500,000), and not more than 10 percent of the total amount of bonds authorized to be expended for purposes of this section may be expended for those purposes. 12879.6. (a) The sum of fo_rty million dollars ($40,000,000) of the money in the fund shall be deposited in the Water Conservation and Groundwater Recharge Account and shall be available for ap?roprka- tion by the Legislature for loans to local agencies to aitt in tl~e acquisition and construction of voluntary, cost-effe_ctive capital outlay water conservation programs and groundwater recharge facilities. 116 G88 (b) No eligible project may receive more than five million dollars ($5,000,000) in loans from the department. (c) The department shall set priority for loans under this section for voluntary, cost-effective capital outlay water conservation programs on the basis of the cost effectiveness of the proposed project, with the most cost-effective projects receiving the highest priority. (d) The department shall set priority for loans under this section for qroundwater recharge facilities for projects in overdrafted groundwater oasins and those projects in critical need, for projects whose feasibility studies show the greatest economic justification and the greatest engineering and hydrogeologic feasibility, as determined by the depart- ment, and for projects located in areas which have existing water management programs. (e) The department may make loans to local agencies, at the interest rates authorized pursuant to this chapter and under any terms and conditions as may be determined necessary by the department, for the purposes of fina ncing feasibility studies of projects potentially eligible for funding pursuant to this section. No single potential project shall be eligible to rece(ve more than one hundred thousand dollars ($100,000), anct not more than $ percent of the total amount of bonds authorized to be expended for the purposes of this section may be expended for these purposes. Article $. Fiscal Provisions 12879.7. Bonds in the total amount of sixty million dollars ($63,000,000), exclusive of refunding bonds issued pursuant to Section 12879.15, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. All bonds herein authorized, which have been duly sold and delivered as herein provided, shall constitute valid and legally binding general obligations of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal and interest thereof. 12879.8. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 167£0) of Part $ of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter. 12879.9. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Water Conservation Finance Committee is hereby created. For purposes of this chapter, the Water Conservation Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Governor, the Controller, the Treasurer, the Director of Finance, the Director of Water Resources, and the Chairperson of the California Water Com- mission, or their designated representatives. A majority of the commit- tee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Department of Water Resources is designated the "board." 12879.10. 7'he committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Sections 1£879.5 and12879.6, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 12879.11. There shall be collected each year and in the satne manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds maturing each year, and all officers required by law to perform any duty in regard to the collection of state revenues shall collect that additional sum. 12879.12. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum which is necessary to carry out the provisions of Section 12879.13, appropriated without regard to fiscal years. 12879.13. For the purposes of carrying out this chapter, the Director of Finance may, by executive o~der, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount 9f the unsold bonds which the committee has, by resolution, authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund to be allocated by the board in accordance with this chapter. Any money made available under this section to the board from money received from the sale of bonds for the purpose of carrying out this chapter shall be returned to the General Fund plus the interest that the amount would have earned in the Pooled Money Investment Account. 12879.14. All money deposited in the fund ,which is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 12879.15. Any bonds issued and sold pursuant to this chapter may be refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division £ of Title 2 of the Government Code. Approval by the electors of the state for the issuance of these bonds shall include the approval of any bonds issued to refund any bonds originally issued or previously issued refunding bonds. 12879.16. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money investment Account, in accordance with Section 16312 of the Govegnment Code for the purposes of carrying out this chapter. The amottnt of the request shall not exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute such documents as are required by the Pooled Money Investment Board to obtain and repay the loan, Any amounts loaned shall be deposited in the fund: to be allocated by the board in accordance with this chapter. 1£879.1Z The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, the disbursement of ithese proceeds is not subject to the limitations imposed by that article. SEC. 2. Section 13459 of the Water Code is amended to read: 13459. (a) The sum of seventy-five million dollars ($75,000,000) of the money in the fund shall be deposited in the Agricultural Drainage Water Account is appropriated for expenditure in the 1986-87 fiscal year for loans to agencies to aid in the construction of drainage water management units for the treatment, storage, or disposal of agricultural drainage water and the purposes set forth in this Section. The board may loan an agency up to i00 percent of the total eligible costs of design and construction of an eligible project. Loans made in the 1986-87 fiscal year may not be authorized sooner than 30 days afte~ notification in writing of the necessity therefor to the chairperson of the committee in each house which considers appropriations, to the p01iey committee of the Assembly as designated by the Speaker of the Assembly and the policy committee of the Senate designated by the Senate Rules Committee, and the Chairperson of the Joint Legislative Budget Committee. (b) Any contract for an eligible project entered into pursuant to this section may include such provisions as determined by the board and shall include, in substance, all of the following provisions: (1) An estimate of the reasonable cost of the eligible project. (2) An agreement by the agency to proceed expeditiously with, and complete, the eligible project; commence operattion of the containment structures or treatment works upon completion ~nd to properly operate and maintain the works in accordance with applicable provisions of law; provide for payment of the agency's share of the cost of the project, including principal and interest on any state loan made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance for the state-assisted project. (c) All loans pursuant to this section are subject to all of the following provisions: (1) Agencies seeking a loan shall demonstrate, to the satisfaction of the board, that an adequate opportunity for public participation regarding the loan has been provided. (2) Any election held with respect to the loan shall include the entire agency except where the agency proposes to accept the loan on behalf of a specified portion, or portions, of the agency, in which case the referendum shall be held in that portion or portions of the agency only. (3) Loan contracts may not provide a moratorium on payment of principal or interest. (4) Loans shall be for a period of up to 20 yea4rs ;v~t~ oa~ ':ntcrcst rate se~ annually by tl~ ~c, ard ~ r~0 percent of t-he intzrcst ~ eomputcd by ~ .~uc ~ntcrc.:t cc.:t ..mct?.c.d ~n ~c. nd~ t-bis c.[a~cr. The interest rate for the loa. ns shall be.set at a rate equql to 50 percent of the interest rate paid by the state,on tl~e most recent sate of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the next higher multiple of one-tenth of 1 percent. The interest rate set for each contract shallbe applied throughout the contract's repayment perio& There shall be a level annual repayment of principal and interest on loans. (5) The board in considering eligible projects Shall give preference to technologies which treat drainage water where the board finds that the technology is readily available and economically feasible for the agency. (6) No single project may receive more than twenty million dollars ($20,000,000) in loan proceeds from the board. (d) The board may make loans to local agencies, at the interest rates authorized under this section and under any terms and conditions as may be determined necessary by the board foe purposes of financing feasibility studies of projects potentially eligible for funding under this section. No single potential project shall be eligible to receive more than one hundred thousand dollars ($100,000), andn0t more than 3 percent G88 117 of the total amount of bonds authorized to be expended for purposes of this section may be expended for this purpose. A loan for a feasibilit~y study shall not decrease, the maximum amount of any other loan which may be made under this section. SEC. 3. Section 13999.3 of the Water Code is amended to read: 13999.3. (a) There is in the State Treasury the 1984 State Clean Water Bond Fund, which fund is hereby created. There shall be established in the fund a Clean Water Construction Grant Account for the purpose of implementing Section 13999.8, a Small Communities Assistance Account for the purpose of implementing Section 13999.9, a Water Reclamation Account for the purpose of implementing Section 13999.10 and a Water Conservation Account for the purpose of imple- menting Section 13999.11. (b) From time to time, the board may modify existing accounts in the fund, or may establish other accounts in the fund, and in all other bond funds administered by the board, which the board determines are appropriate or necessary for proper administration. SEC. 4. Section 13999.5 of the Water Code is amended to read: 13999.5. (a) The committee is hereby authorized and empowered to create a debt or debtS, liability or liabilities, of the State of California, in the aggregate amount of three hundred twenty-five million dollars ($325,000,000), in the manner provided in thi.s chapter. Th? de.bt or debts, liability or liabilities, shallbe created for the purpose ot provioin~ the fund to be used for the object and work specified in this section anu in Sections 13999.6, 13999.8, 13999.9, 13999.10, 13999.11, and 13999.14. (b) The board is authorized to enter into contracts with municipal- ities having authority to construct, operate, and maintain treatment works and reclamation projects, for grants and loans to the municipal- ities to aid in the construction of eligible projects and eligible water reclamation projects and may adopt rules and regulations necessary to carry out the provisions of this chapter. (c) As approved by the Legislature annually in the Budget Act, the board may, by contract or otherwise, undertake plans, surveys,, research, development, and studies necessary, convenient, or desiraole to carry out the purposes of this division and may prepare recommendations with regard thereto, including the preparation of comprehensive statewide or areawide studies and reports on the collection, treatment, and disposal of waste under a comprehensive cooperative plan. (d) As approved by Ihe Legislature annually in the Budget Act, the board may expend bond funds necessary for administration of this chapter. , (e) Not more than 5 Percent of the ~q'to~9' ~ i~ t-he fund total amount of the bonds authorized to be issued under this chapter may be used for purposes of subdivisions (c) and (d). (f) As approved by the Legislature annually in the Budget Act, the department may direct grants and loans to any public agency or, by contract or otherwise, Undertake plans, surveys, research, development, and studies necessary, Convenient, or desirable to carry out voluntary, cost-effective capital outlay water conservation programs. (g) The boardmay dxpend funds necessary to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. SEC. 5. Section 13999.10 of the Water Code is amended to read: 13999.10. (a) The shm of twenty-five million dollars ($25,000,000) of P--roposition 83: Text of Proposed Law Continued from page25 Clean Water Act. Article 2. Clean Water and Water Reclamation Bond Program 14055. (a) The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the State Treasury to the credit 9f the 1988 Clean Water and Water Reclamation Fund, which is hereby created. There shall be established in the fund a Small Communities Grant Account for the purpose of implementing Section 14056 and a Water Reclamation Account ~o,r the purpose of implementing Section 14058. (b) From time to ttme, the board may modify existing accounts in the fund, or may establish other accounts in the fu_nd, and in all other bond funds administered by the board, which the board determines are appropriate or necessary for proper administration. 14056. (a) The sum of twenty-five million dollars ($25,000,000) of the money in the fun~l shall be deposited in the Small Communities Grant Account and, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated for state grants to small communities for construction of treatment works eligible for assistance under Title VI of the federal act. (b) The board may enter into grant contracts in accordance with this section with qualifying small communities having authority to con- struct, operate, and maintain treatment works to aidin the construction of eligible projects. (c) The board may make grants to small communities in an amount on a sliding scale, based on a community's ability to pay, not to exceed 97~ percent of the total estimated cost of pollution studies, planning, design, and construction determined in accordance with applicable state laws and regulations. Total state assistance under this section shall not exceed two millit~n dollars ($2,000,000) for any single eligible project. 118 the money in the fund shall be deposited in the Water Reclamation Account and is appropriated for loans to municipalities for eligible water reclamation projects which will provide water for beneficial uses. The board may loan a municipality up to 100 percent of the total eligible costs of design and construction of a reclamation project. (b) Any contract for an eligible water reclamation project entered into pursuant to this section may include such provisions as determined by the board and shall include both of the followingprovisions: (1) An estimate of the reasonable cost of the eligible water reclama- tion project. (2) An agreement by the municipality to proceed expeditiously with, and complete, the eligible water reclamation project; commence oper- ation of the project in accordance with applicable provisions of law; provide for payment of the municipality's share of the cost of the project, including principal and interest on any state loan made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance, other than that available pursuant to the federal Clean Water Act, for the state-assisted project. (c) Loan contracts may not provide for a moratorium on payments of principal or interest. (d) (1) Any loans made from the Water Reclamation Account shall be for a penodof up to 25 years ...... m,~ ............. se~ ......... · b9, t-be ~ obh~ataon ~cn~ m t-be ......... · ~.. ~mmodmtcly prcecd~ng Cae )'car m w.,:c- the ..... agrecmcnt ~ ......... ~ ~ ...... ~, ~ intcrc~t c_~, .... o ..... ~ ~et ...... ~ ~ ...... R~lamation Accc-ant ~ ncw leans. The interest rate for the loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the next higher multiple 9f one-tenth of I percent. (2) All pHn~pal and interest from loans shall be returned to the Water Reclamation Account for new loans. (e) Funds available under this section may be used for loans pursuant to subdivisions (0, (g), and (h) of Section 13999.8 if the Clean Water Construction Grant Account is depleted. All principal and interest on any such loans shall be repaid to the Water Reclamation Account. (fl No single project may receive more than ten million dollars ($10,~,~) from the boar& SEC. fi. Section 13~9.17 is added to the Water Code, to read: 13999.1Z (a) Notwithstanding any other provision of this chapter and to the extent permitted by federal and state law, the money in the fund may be used to rebate to the federal government all arbitrage profits required by the Federal Tax Reform Act of 1986 or any amendment thereof or supplement thereto. To the extent that the money in the f~nd may not be used for that purpose due to restraints of federal or state law, any rebates required shall be paid from the General Fund or from other sources as required by the Legislature. (b) Notwithstanding any other provision of law, rule, or regulation, the board may enter into contracts, or procure those services and equipment, which may be necessary to ensure prompt and complete compliance with any provisions relating to the fund imposed by either the Federal Tax Refom Act of 1~6 or the federal act. (d) Any contract entered into pursuant to this section may include such provisions as may be determined by the board, provided that any contract shall include the following provisions: (1) An estimate of the reasonable cost of the eligible project. (2) An agreement by the small community to proceed expeditiously with, and complete, the proposed eligible project, commence operation of the treatment works upon completion, and to properly operate and maintain the works in accordance with applicable provisions of law. (e) Small communities eligible for a state grant may also apply for a loan from the State Water Pollution Control Revolving Fund for costs not covered by the grant. 1405Z The sum often million dollars ($10,000,000) of the money in the fu_ nd shall be available for transfer by the board to the Clean Water Bond Guarantee Fund andshall be available to the board to guarantee local agency bond issues pursuant to Article 2.5 (commencing with Section 13425) of Chapter 6. After January 1, 1990, the board may transfer any funds in the Clean Water Bond Guarantee Fund which have not been committed to guaranteeing local agency bond issues to the 1988 Clean Water and Water Reclamation Fund. 14058. (a) The sum qf thirty million dollars ($30,000,000) of the money in the fund shall be deposited in the Water Reclamation Account and, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated to the board for the purposes of this section. (b) The board may enter into contracts with local public agencies having authority to construct, operate, and maintain water reclamation projects, for loans to aid in the design and construction of eligible water reclamation projects. The board may loan up to lOOpercent of the total eligible cost of design and construction of an eligible reclamation project. (c) Any contract for an eligible water reclamation project entered into pursuant to this section may include such provisions as determined G88 by the board and shall include both of the following provisions: (1) An estimate of the reasonable cost of the eligible water reclama- tion project. (2) An agreement by the local public agency to proceed expedi- tiously with, and complete, the eligible water reclamation project; commence operation of the project in accordance with applicable provisions of law, and provide for the payment of the local public agency's share of the cost of the project, including principal and interest on any state loan made pursuant to this section. (d) Loan contracts may not provide for a moratorium on payments of principal or interest. (e) Any loans made from the fund may be for a period of up to 20 years. The interest rate for the loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined, is not a multiple of one-tenth of I percent, the interest rate shall be set at the next higher multiple of one-tenth of 1 percent. (f) All money repaid to the state pursuant to any contract executed untter this chapter shall be deposited in the General Fund as reimburse- ment for the payment of principal and interest on bonds authorized to be issued under this chapter. 14059. As approved by the Legislature annually in the Budget Act, the board may expend for the administration of this chapter not more than 5 percent of the amount of the bonds authorized to be issued under this chapter. 14060. As approved by the Legislature annually in the Budget Act, the board ma[~, by contract or otherwise, undertake plans, surveys, research, devetopment, and studies necessary, convenient, or desirable to carry out the purposes of this division, and may prepare recommen- dations with regard thereto, including the preparation of comprehen- sive statewide or areawide studies and reports on water reclamation and the collection, treatment, and disposal of waste under a comprehensive cooperative plan. 14061. The board may adopt rules, regulations, and guidelines necessary or appropriate to carry out this chapter. Article 3. Fiscal Provisions 14065. Bonds in the total amount of sixty-five million dollars ($65,000,000), exclusive of refunding bonds, or so much thereof as is necessary, may be issuedand sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal _of, and interest on, the bonds as the principal and interest become due and payable. 14066. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) _of Part 3 of Division 4 of Title 2 of the Government Code), and all o_f the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter. 14067. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Clean Water and Water Reclamation Finance Committee is hereby created. For purposes qf this chapter, the Clean Water and Water Reclamation Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Governor, the Controller, the Treasurer, the Director of Finance, and the Executive Director of the State Water Resources Control Board, or their designated representa- tives. A majority of the committee may act fo. r the committee. (b) For purposes of the State General Obligation Bond Law, the State Water Resources Control Board is designated the "board." 14068. Consistent with Section 602 of the federal act, the committee shall determine whether or not it is necessarq or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Sections 14056, 14057, 14058, 14059, and 14060, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 14069. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of,_ and interest on, the bonds each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act which is necessary to collect that additional sum. 14070. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the follob;ing: (a) The sum annually necessary to pay the principal of, and interest G88 on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. : (b) The sum which is necessary to carry out the provisions of Section 14071, appropriated without regard to fiscal y. ears, 14071. For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized by the committee to be sold for the purpose of carrying out this chapter. Any amounts witl~drawn ~hall be deposited in the fund. Any money made available under this section shall be returned to the General Fund plus the interest that the amounts would have earned in the Pooled Money Investmqnt Account from money received from the sale of bonds for the purpose of carrying out this chapter. 14071.5. The board maq request the Pooled Money Investment Board to make a loan from tl~e Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out this chapter. The amount of the request shall not exceedthe amount of the unsold bonds which the committee has, by resolution, authorized to be sold for the l~urpose of carrying this chapter. The board shall execute those doduments required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. 14072. All money deposited in the fund which is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 14073. The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of the State General Obligation Bond Law. 14074. (a) Notwithstanding any other l~rovision of this chapter and to the extent permitted by federal and state law, the money in the fund may be used to rebate to the federal government all arbitrage profits required by the Federal Tax Refomn Act of 1986 or any amendment thereof or supplement thereto. ~To the extent that the money in the f~nd may not be used for that purpose clue to restraints of federal or state law, any rebates required shall be paid from the General Fund or other sources as the Legislature may requi~e. (b) Notwithstanding any other provision qf law, or rule or regula- tion, the board may enter into contracts, or procure those services and equipment, which may be necessary to ensure prompt and complete compliance with any provisions relating to the fund imposed by either the Federal Tax Reform Act of 1986 or the federal act. 14075. The Legislature hereby ~'nds anal declares that, inasmuch as the proceeds .from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used ia Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. SEC. 3. Seetion 13459 of the Water Code is amended to read: 13459. (a) The sum of seventy-five million dollars ($75,000,000) of the money in the fund shall be deposited in t~e Agricultural Drainage Water Account is appropriated for expenditure in the 1986437 fiscal year for loans to agencies to aid in the construction of drainage water management units for the treatment, storage, 0r disposal of agricultural drainage water and the purposes set forth in this section. The board may loan an agency up to 100 percent of the total eligible easts of design and construction of an eligible project. Loans madein the 1986-87 fiscal year may not be authorized sooner than 30 days after notification in writing of the necessity therefor to the chairperson of the committee in each house which considers appropriations, to the policy committee of the Assembly as designated by the Speaker of the Assembly and the policy committee of the Senate designated by the Senate Rules Committee, and the Chairperson of the Joint Legislative Budget Committee. (b) Any contract for an eligible project entered into pursuant to this section may include such provisions as determined by the board and shall include, in substance, all of the following! provisions: (1) An estimate of the reasonable cost of the eligible project. (2) An agreement by the agency to proceed expeditiously with, and complete, the eligible project; commence operation of the containment structures or treatment works upon completion and to properly operate and maintain the works in accordance with applicable provisions of law; provide for payment of the agency's share of the cost of the project, including principal and interest on any state 10an made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance for the state-assistediproject. (c! .All loans pursuant to this section are subject to all of the following provisions: (1) A~[encies seeking a loan shall demonstrate, to the satisfaction of the board, that an adequate opportunity for public participation regard- ing the loan has been provided. (2) Any election held with respect to the loan shall include the entire agency except where the agency proposes to accept the loan on behalf of a specified portion, or portions, of the agency, in which case the referendum shall be held in that portion or portions of the agency only. (3) Loan contracts may not provide a moiatorium on payment of principal or interest. (4) Loans shall be for a period of up to 20 years wlt~ m-~ '.'::forest ratc 119 ~q~ & .....Us. b~ ~ bc. ard ~t r~O pcrccnt of t-he intcrcgt ~fee eomputod b~ ~ chr. ptcr. The interes~ rate for the loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-tenth of l percent, the interest rate shall be set at the next higher multiple of one-tenth of 1 percent. The interest rate set for each contract shall be applied throughout the contract's repayment period. There shall be a level annual repayment, of principal and interest oniloans. (5) The board in considering eligible projects shall give preference to technologies which treat ilrainage water where the board finds that the technology is readily available and economically feasible for the agency. (6) No single project may receive more than twenty million dollars ($20,000,000) in loan proceeds from the board. (d) The board may make loans to local agencies, at the interest rates authorized under this section and under any terms and conditions as may be determined necessary by the board, forpurposes of financing feasibility studies of projects potentially eligible for funding under this section. No single potential project shall be eligible to receive more than one hundred thousand dollars ($100,000), andnot more than 3 percent of the total amount of bonds authorized to be expended for purposes of this section may be expended for this purpose. A loan for a feasibility study shall not decrease ~he maximum amount of any other loan whicn may be made under this section. SEC. 4. Section 13999.3 of the Water Code is amended to read: 13999.3. (a) There isi in the State Treasury the 1984 State Clean Water Bond Fund, which fund is hereby created. There shall be established in the fund a Clean Water Construction Grant Account for the purpose of implementing Section 13999.8, a Small Communities Assistance Account for the purpose of implementing Section 13999.9, a Water Reclamation AccOunt for the purpose of implementing Section 13999.10 and a Water COnservation Account for the purpose of imple- menting Section 13999.11. (b) From time to time, the board may modify existing accounts in the fund, or may establish o~er accounts in the fu_nd, and in all other bond funds administered by the board, which the board determines are appropriate or necessary for proper administration. SEC. 5. Section 13995.5 of the Water Code is amended to read: 13999.5. (a) The committee is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the State of California, in the aggregate amount of three hundred twenty-five million dollars ($325,000,000), in the manner provided in thi.s chapter. Thee de.bt or debts, liability or liabilities, shallbe created for the purpose vt proviaing the fund to be used for tlae object and work specified in this section and in Sections 13999.6, 13999.8, 13999.9, 13999.10, 13999.11, and 13999.14. (b) The board is authorized to enter into contracts with municipal- ities having authority tO construct, operate, and maintain treatment works and reclamation projects, for grants and loans to the municipal- ities to aid in the construction of eligible projects and eligible water reclamation projects and may adopt rules and regulations necessary to carry out the provisions of this chapter. (c) As approved by the Legislature annually in the Budget Act, the board may, by contract or otherwise, undertake plans, surveys, research, development, and studies necessary, convenient, or desirable to carry out the purposes of this division, and may prepare recommendations with regard thereto, including the preparation of comprehensive statewide or areawide stUdies and reports on the collection, treatment, and disposal of waste urlder a comprehensive cooperative plan. (d) As approved by the Legislature annually in the Budget Act, the board may expend bond funds necessary for administration of this chapter. (e) Not more than 5 percent of the mcncy dep~_ i~ 0ac fund total amount of the bonds authorized to be issued under this chapter may be used for purposes of subdivisions (c) and (d). (f) As approved by the Legislature annually in the Budget Act, the department may direct ~rants and loans to any public agenc, y or, by contract or otherwise, undertake plans, surveys, research, development, and studies necessary, convenient, or desirable to carry out voluntary, cost-effective capital outlay water conservation programs. Proposition 84: Text of Proposed Law Continued from page 29 Pooled Money Investment Account, from money received from the sale of bonds for the purpose of carrying out this part. 53176.5. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section l6~12 of the Government Code, for purposes of carrying out the provisions of this chapter. The amount of the request shall not exceed the amount of unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute any documents which are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated to the (g) The board may expend funds necessary to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. SEC. 6. Section 13999.10 of the Water Code is amended to read: 13999.10. (a) The sum of twenty-five million dollars ($25,000,000) of the money in the fund shall be deposited in the Water Reclamation Account and is appropriated for loans to municipalities for eligible water reclamation projects which will provide water for beneficial uses. The board may loan a municipality up to 100 percent of the total eligible costs of design and construction of a reclamation project. (b) Any contract for an eligible water reclamation project entered into pursuant to this section may include such provisions as determined by the board and shall include both of the followingprovisions: (1) An estimate of the reasonable cost of the eligible water reclama- tion project. (2) An agreement by the municipality to proceed expeditiously with, and complete, the eligible water reclamation project; commence oper- ation of the project in accordance with applicable provisions of taw; provide for payment of the municipality's share of the cost of the project, including principal and interest on any state loan made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance, other than that available pursuant to the federal Clean Water Act, for the state-assisted project. (c) Loan contracts may not provide for a moratorium on payments~of principal or interest. (d) (1) Any loans made from the Water Reclamation Account shall be for a periodof up to 25 years ;;tth a-~ intcrcgt ratc se~ annual!y by,~he bc, ard ~ r~O pcrccnt of ~ ~ ~ ~ P~.. b~,t-he gtatc,.o~ ~ obligation he. nfl: i~ t-he ca.cn~c.r ycar immedtatcty preccm~ng t-he ycar i~ which t-he lc. an agrecmcnt i~ cxccutcd. ~14 principal ~ intcrcgt frc. m lc. aug shall be rcturncd t-o t-he Watcr Reclamation Accc. unt fo~ nc;;' loans. The interest rate for the lo.ans shall be. set at a rate equa. l to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the next higher multiple qf one-tenth of l percent. (2) All principal and interest from loans shall be returned to the Water Reclamation Account for new loans. (e) Funds available under this section may be used for loans pursuant to subdivisions (f), (g), and (h) of Section 13999.8 if the Clean Water Construction Grant Account is depleted. All principal and interest on any such loans shall be repaid to the Water Reclamation Account. (f) No single project may receive more than ten million dollars ($10,000,000) from the board. SEC. 7. Section 13999.17 is added to the Water Code, to read: 13999.1Z (a) Notwithstanding any other provision of this chapter and to the extent permitted by fed. eraland state law, the money in the fund may be used to rebate to the federal government all arbitrage profits required b~ the Federal Tax Reform Act of 198~. or any amendment thereof o_r supplement thereto. 7'0 the extent that the money in the fund may not be used for that purpose due to restraints of federal or state law, any rebates required shall be paid from the General Fund or from other sources as required by the Legislature. (b) Notwithstanding any other provision of law, or rule or regula- tion, the board may enter into contracts, or procure those services and equipment, which may be necessary to ensure prompt and complete compliance with any provisions relating to the fund imposed by either the Federal Tax Reform Act of 1986 or the federal act. SEC. 8. Section 13999.18 is added to the Water Code, to read: 13999.18. Notwithstanding any other provision of this chapter, and as approved by the Legislature, the board may share in the cost of the construction of treatment works under subdivision (b) of Section 510 o_f the Federal Water Quality Act of 1987. That participation may be approved only if the board determines that treatment works in Mexico, in conjunction with any defensive treatment works constructed under the Federal Water Pollution Control Act, are not sufficient to protect the residents of the City of San Diego and surrounding areas, including Imperial County, from water pollution originating in Mexico. No project in which the board participates shall receive more than ten million dollars ($10,000,000) in loan proceeds from the board. board in accordance with this chapter. 53177. All money deposited in the fund which is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 53178. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this part are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. 120 G88 Proposition 85: Text of Proposed Law Continued from page 33 remodeled, or rehabilitated with grants received pursuant to this chapter shall be dedicated to public library direct service use for a period of not less than £0 years following completion of the project, or the useful life of the building, whichever is longer. (b) If the faciIity, or part thereof, acquired, constructed, remodeled, or rehabilitated with grants received pursuant to this chapter ceases to be used for public library direct service prior to the expiration of the period specified in subdivision (a), the board shall be entitled to recover from the grant recipient or the recipient's successor in the maintenance of the facility, an amount which bears the same ratio to the value of the facility~ or the appropriate part thereof, at the time it ceased to be used from public library direct service as the amount of the grant bore to the cost of the facility or appropriate part thereof For purposes of this subdivision, the value of the facility, or the appropriate part thereof, shall be determined by the mutual agreement of the parties~ or through an action brought for that purpose in the superior court. (c) The board may release the grant recipient or the recipient's successor in the maintenance of the facility from its obligation under subdivision (a), and waive the requirements of subdivision (b), if the board determines that so doing would not diminish the quality of public library service in the community served by the facility. (d) Notwithstanding subdivision (f) of Section 16724 of the Gov- ernment Code, moneys recovered pursuant to subdivision (b) shall be deposited in the fund, and shall be available for the purpose of awarding grants for other projects. Article 3. Fiscal Provisions 19970. Bonds in the total amount of seventy-five million dollars ($75,000,000) (exclusive of refunding bonds), or so much thereof as is necessarT, may be issued and sold to provid~ a fund to be used .for carrying out the purposes expressed in this ch'apter and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of Cal(fornia is hereby pledged for the punctual payment ofiboth principal of, and interest on, the bonds as the principal and interest become due and payable. 19971. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed aS provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) o_f Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter. 19972. (a) Solely for the purpose of authoyizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the California Library Construction and Renovation Finance Committee is hereby created. For purposes of this chapter, the California Library Construction and Renovation Finance Committee is the "committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Treasurer, the State Librariar~ the Director of Finance, or their designated representatives. The Treasurer shall serve as chairperson of the c~mmittee. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Califqrnia Library Construction and Renovation Board is' designated the "board." , 19973. The committee shall determine whether or not it is necessar7 or desirable to issue bonds authorized pursuant to this chapter in order G88 121 to carry out the actions Specified in Article 2 (commencing with Section 19g55), and, if so, the amount of bonds to be issued and sold.. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at anal one time. 19974. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of,_ and interest on, the bonds each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act which is necessary to collect that additional sum. 19975. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purpoSes of this chapter, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum which is necessary to carry out the provisions of Section 19976, appropriated without regard to fiscal years. 19976. For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account during the time the money was withdrawn from the General Fund pursuant to this section from money Proposition 86: Text of Proposed Law Continued from page $7 not necessary that all of the bonds authorized to be issued be sold at any one time. 4496.38. There shall belcollected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year, and iX is the duty of all officers charged by law with any duty in regard to the collection! of the revenue to do and perform each and every act which is necessary to collect that additional sum. 4496.40. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the folldwing: (a) The sum annually necessary to pay the principal of, and-interest on, bonds issued and soM pursuant to this chapter, as the principa£and interest become due and payable. (b) The sum which is necessary to carry out the provisions of Section 4496.42, appropriated without regard to 2%cal years. 4496.42. For the purposes of carrying out this title, the Director of Finance may authorize the withdrawal from the General Fund of an amount or.amoun, ts. not t.o exceed the amount .of the unsold bonds which have been authorized Oy t/~e committee to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this received from the sale of bonds for the purpose of carrying out this chapter. 19977. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 18312 of the Government Code, for the purposes of carrying out this chapter. The amount of the request shall not exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute any documents requiredby the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. 19978. Any bonds issued and sold pursuant to this chapter may be refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 2 of Title 2 of the Government Code. Approval by the electors of the state for the issuance of bonds shall include the approval of the issuance of any bonds issued to refund any bonds originally issued or any previously issued refunding bonds. 19979. All money deposited in the fund which is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 19980. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XII1 B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. 19981. An amount not to exceed 1 percent of the fund may be used by thf State Librarian for costs of administering this chapter. section, plus an~t interest that the amounts would have earned in the Pooled Money Investment Account, shall be returned to the General Fund from money received from the sale of bonds for the purpose of carrying out this title. 4496.44. All money deposited in the fund which is derived from premium and accrued interest on bonds soM shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 4496.46. The bonds may be refunded in accordance with Article 6 (com- mencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code. 4496.47. The board may request the Pooled Money Investment Board to make a loan frqm the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out the provisions of this chapter. The amount of the request shall not exceed the amount of the unsoM bonds which the committee has by resolution authorized to be sold for the purpose o[~f~carrying out this chapter. The board shall execute such documents as required the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocatedby the board in accordance with this chapter. 4496.48. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this title are not "proceeds of taxes" as that term is used in Article XIIIB of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. Proposition 87: Text This amendment proposed by Assembly Constitutional Amendment 56 (Statutes of 1988, Resolution ChaptOr 54) expressly amends the Constitution by amending a section thereof; thereforei existing provisions proposed to be deleted are printed in :~'~kzc,::t tyFc and new provisions proposed to be added are printed in italic type to indicate that theylare new. PROPOSED AMENDMENT TO ARTICLE XVI, SECTION 16 SEC. 16. All property in a redevelopment project established under the Community Redevelopment Law ~ as now existing or hereaRer amended, except publicly owned property not subject to taxation by reason of 3',:c?~ that ownership, shall be taxed in proportion to its value as provided in Section 1 of this article, and ~',:ch those taxes (the word "taxes" as used herein ~ha!! ~7.c!',:dc includes, but ~ha1! is not he limited to, all levies on an ad valorem basis upon land or real property) shall ~e levied and collected as other taxes are levied and collected by the respective taxing agencies. The Legislature may p?ovide that any redevelopment plan may contain a provision that the tax~s, lif any, so levied upon guc~ the taxable property in a redevelopment project each year by or for the benefit of the State of California, any city, county, city and county, district, or other public corporation (hereinafter sometimes called "taxing agencies") after the effective date of the ordinance approving the redevelopment plan, shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of saig those taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment project as shown upon th~ assessment roll used in connection with the taxation of :,ach that l~ro~erty by ~ the taxing agency last equalized prior to the effective date of ~ the o:~'dihanee, shall be dllocated'to, and when colleeted shall be paid into, the funds of the resPective taxing agencies as taxes by or for ~ those taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any taxing ager~cy or agencies which did not include the territory in a redevelopment project on the effective date of saeh the ordinance but to which 122 of Proposed Law saeh that territory has been annexed or otherwise included after ~',:ch the ordinance's effective date, the assessment roll of the county last equalized on the effective date of sa~ that ordinance shall be used in determining the assessed valuation of the taxable property in the project on sai4 that effective date); and (b) Thc, t Except as provided in subdivision (c), that portion of ~ the levied taxes each year in excess of ;ach that amount shall be alloeated to and when collected shall be paid into a special fund of the redevelopment agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed or otherwise) incurred by such the redevelopment agency to finance or refinance, in whole or in part, ~ the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in such the project as shown by the last equalized assessment roll referred to in ~arz. grc. Fh .... ~ ...... ~ ....... subdivision (a), all of the taxes levied and collected upon the taxable property in ~uch the redevelopment project, sh,all be paid into the funds of the respective taxing agencies. When sale[ tl~e Loans, advances, and indebtedness, if any, and interest thereon, have been paid, then all moneys thereafter received from taxes upon the taxable property in ~ueh the redevelopment project shall be paid into the funds of the respective taxing agencies as taxes on all other pr~l?erty are paid. (c) That portion of the taxes ictentified in subdivision (b) which are attribut- able to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficiqnt to make annual repayments of the principal of and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that taxing agency. This paragraph shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989. The Legislature may also provide that in any redevelopment plan or in the proceedings for the advance of moneys, or making of loans, or the incurring of any indebtedness (whether funded, refunded, assumed, or otherwise) by the rede- G88 velopment agency to finance or refinance, in whole or in part, the redevelopment provisions hereof separately or in combination with powers granted by the same project, the portion of taxes ,'nc::tic,':cd identified in l:aragra~h dc:'.'gnatcd ~ or any other law relative to redevelopment ageneies~ This section shall not affect hcrcc,£ subdivision (b), exclusive of that po~'on identified in subdivision (c), may any other law or laws relating to the same or a similar subject but is intended to be irrevocably pledged for the payment of the principal of and interest on ~ authorize an alternative method of procedure governing the subject to which it those loans, advances, or indebtedness, refers. It is intended by this section to empower any redevelopment agency, city, The Legislature shall enact :'ack those laws as mayi, be necessary to enforce the county, or city and county under any law authorized by this section to exercise the provisions of this section. ~ Proposition 88: Text of Proposed Law This amendment proposed by Assembly Constitutional Amendment 63 (Statutes of 1988, Resolution Chapter 59) expressly amends the Constitution by amending a section thereof; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE XI, SECTION 11 SEC. 11. (a) The Legislature may not delegate to a private person or body power to make, control, appropriate, supervise, or interfere with county or municipal corporation improvements, money, or property, or to levy taxes or Proposition 93: Text assessments, or perform municipal functions. (b) The Legislature may, however, provide for the deposit of public moneys in any bank in this state or in any savings and loan asspciation in this state or any credit union in this state or in on,t federalist insured iindustrial loan compant~ in this state and for payment of interest, principal, and redemption premiums of public bonds and other evidence of public indebtedness by banks within or without this state. It may also provide for investment of public moneys in securities and the registration of bonds and other evidences bf indebtedness by private persons or bodies, within or without this state, aetin$ as trustees or fiscal agents. of Proposed Law This amendment proposed by Senate Constitutional Amendment 16 (Statutes of 1988, Resolution Chapter 68) expressly amends the Constitution by amending sections thereof; therefore, existing provisions proposed to be deleted are printed in :tr:&oc,-at tFpc and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED AMENDMENT TO ARTICLE XIII, SECTION 3 First--That subdivision (o) of Section 3 of Article XIII thereof is amended to read: (o) Property in the amount of $1,000 of a claimant who- (l) is serving in or has served in and has been discharged under honorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Coast Guard, or Revenue Marine (Revenue Cutter) Service; and-- (2) served either (i) in time of war, or (ii) in time of peace in a campaign or expedition for which a medal has been issued by Congress, or (iii) in time of peace and because of a service-connected disability was released from active duty; and-- (3) resides in the State on the current lien date ~ aad¢- ~ a~ t4~ .".rn.c of cn~y ~ o~ of the ~ranck~ of toae armed f;rcc: namcd ia An unmarried person who owns property valued at $5,000 or more, or a married person, who, together with the spouse, owns property valued at $10,000 or more, is ineligible for this exemption. Proposition 95: Text of Proposed Law Continued from page ~7 selected from a panel of names submitted for consideration by the Counter Supervisors Association of California; and one who shall be selected from a panel of names submitted for consideration by the League of California Cities. The remaining appointee shall be a person who, in the judgment of the Governor, has demonstrated a commitment to the problems of hunger and homelessness. (2) Five members appointed by the Senate Rules Committee, four of whom shall be persons having the following qualifications: one who shall be affiliated with a privately funded agency or organization which provided services to the hungry or homeless prior to January 1, 1987. one who shall be a provider of emergency nutrition services; one who shall be an official or employ, tee ora local hoUSing authority; and one who shall be affiliatdd with a Communitgt Action Agency, as defined in Government Code Section 12750, which provides services to hungry or homeless persons. The remaining appointee shall be a person who, in the judgment of the Senate Rules Committee, has demonstrated a commitment to the problems of hunger and homelessness. (3) Five members appointed by the Speaker of the California Assembly, four qf whom shall be persons having the following qualij%ations: one who shall tie affiliated with a provider of services to the hungry or homeless; one who shall ham experience as a non-profi_'t housing developer; one who shall be affiliated with a provider of federal foo_d program services,, and one who shall be Affiliated with a provider of services to homeless adolescents. The remaining appointee shall be a person who, in the judgment of the Speaker of the Califqrnia Assembler, has demonstrated a commitment to the problems of hunger and homelessness. (4) The State Treasurer. 8699.6. Qualifications and Terms of Members. (a) Members qf the board shall be persons broadly reflective of the economic, cultura& geographic (including urban and rural), and social diversit~ of the state, including ethnic minorities and women. However, it is not intended that formulas or specific ratios be applied in order to achieve that diversity. (b) ?he members shall be appointed for terms of three ~tears. All initial appointments shall be made within 30 da~s of the effective date of this chapter. Vacancies shall be filled within 30 da~s by the appointing authority empowered by Section 8699.5(t~) to appoint the member whose departure created the vacant. A person appointed tofilla vacancy shall serve for the unexpiredportion of the term in which the vavanctj occurred. Members of the board shall be eligible for reappointment. G88 If the claimant is married and does not own propertY eligible for the full amount of the exemption, property of the spouse shallbe eligible for the unused balance of the exemption. Second--That subdivision (p) of Section 3 of Art/tlc XIII thereof is amended to read: (p) Property in the amount of $1,000 of a claimant who~ (1) is the unmarried spouse of a deceased veteran who met the service requirement stated in paragraphs (1) and (2) of sub,etlon 3(o), and (2) does not own property in excess of $10,000, and (3) is a resident of the State on the current lien date; mad cffkcr 44-)- resided ia the ~k',ate o~ N~vcm~cr ~, ~ s~ 448' is t-he unmarrAc~ :F,,3u:c of adc. czr. gc.d ~ ,,,¢ho m~ t-he requirement :tat~ i~ para~':,ph { of ~ Third--That subdivision (q) of Section 3 of Article XIII thereof is amended to read: (q) Property in the amount of $1,000 of a elaiman! who- (l) is the parent of a deceased veteran who met the service requirement stated in paragraphs (1) and (2) of subsection 3(o), and ': (2) receives a pension because of the veteran's service, and is a resident of the State on the current lien d~te; mad c'~thcr ~ resided ia t~ State e~ Nc, vcm~cr ik, ,~mea,, o~ ; ~ ~ the ~ of ~ .............. ~ me~ [q~e ......... · requirement Either parent of a deceased veteran may claim thi* exemption. An unmarried person who owns property valued at $5,000 or more, or a married person, who, together with the spouse, owns property valued at $10,000 or more, is inehgible for this exemption. 8~. 7. Compensation and Expenses. Members ofthe board of directors shall be compensated at the rate of one hundred dollars ($lO0) for each day th~ are engaged in meetings of the board or its committees Or subcommittees. Members shall be reimbursed for actual expenses incurred on Corporation business, including necessary travel and child care expenses as determined ~ the Depart- merit of Personnel Administration. ~ . . 86~.8. Chairperson. The board of directors shall meet wtthm 60 days of the effective date of this Act for the purpose of selecting from among its membership an interim chairperson who shall serve until a permanent chairperson has been selected by the board. Thereafter, the board shalll annuall~ select from its membership a chairperson. Ttie chairperson shall have the power to convene special meetings of the board upon 48 hours written notice to members. 8~gg.a Open Meetings. Meetings of the Corporation shall be open and public in accordance with the Baglcy-Kcene Open Meeting Ac6 commencing with Section 11120 of Chapter 1 of Part I of Division 3 o£ the Government Code. at,.la Quorum; Voting, A quorum shall consist pf eight members of the board. All decisions of the Corporation shall be ma& by a majority vote of the quorum. 8698.11. Appointment of Executive Director. The board shall appoint an executive director within 1£0 dogs of the effective date of this chapter. The executive director shall be responsible for managing thp affairs of the Corporation and shall, in the judgment .of the board, be qualified bgt training and experience to direct the operations of the Corporation. The executive director shall be exempt from civil service, shall serve at the pleasure of ithe board, and shall be compensated at the same rate as the president of the Public Utilities Commission. The executive director shall devote his or her entire time and attention to the duties of his or her office and shall not be engaged in an[t other profession or occupation. 8~S. 12 Deputy Director. Upon recommendation of &e executive director, the board mag appoint a deputy director who shall bp exempt from civil service and shall serve at the pleasure of the board. The executive director shall supervise the activities of the deputy director. The board shall d, termine the compensation of the deput~ director. 86~.13. Appropriation; Disclosure in State Budget~ Hearings. (a) The Department of Financg in preparing the state budget and the Budget Bill submitted to the Legislature, shall include an item for the support of the Corporation of Califqrnia, which item shall include all of the following: (1) all net proceeds of penalties collected pursuant to the provisions of Division 2.2.5 of the Health and Safet~ Gode, except as otharwise provided in Section 310~0 thereofi (£y all prom&from the sale of bonds issued pursuant to Article 3 of this chapter; 128 (3) such other amounts as may from time to time be appropriated by the Legidature pursuant to this section; and (4) such other amounts as may from time to time be appropriated by law. (b) At the conclusion of the fi. rst full fiscal year following the eff~_ .tive date of this chapter, the Legislature, shall b~j appropriate committee hold public hearings to determine whether addi'tional appropriations are required to further the purposes of this chapter, and whether adaptations are required in the housing, homeless, nutrition, and code enforcement programs established by this Act in order to further the Act's purposes. In making this determination, the Legislature shall consider reports and other documents prepared by the board and such other evidence as it shall deem necessary. 8699.14. Bules and Beg~lations. The Corporation shall have the power to adopt, and from time to time amend and repeal, by action of the board, rules and regulations to carry into effect the powers and purposes of the Corporation and the conduct of its business. These rules and regulations shall be adopted in accordance with the Administrative Procedures Act (Government Code, Title 2, Divi~'on 3, Part. 1, Chapter 3.5, Sections 11340, et seq.), shall be published as provided therein, and shall be consistent with the provisions of this chapter. 86S9.15. Powers and Duties. The Corporation shall have all powers necessa~ to effectuate the purposes iof this chapter, including, but not limited to, the fol£dwing powers: (a) To sue and be sued in its own name. (b) To have perpetual sUccession. (c) To maintain offices at such place or places within the state as it may des/~)nate. ~ To accept grants, contributions, and appropriations. (e) Notwithstanding an~t other provision of law, to make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter with any governmenta! ageney, private corpo- ration or other entity, or individual (f) To acquire real or personal property, or any interest therein, on either a temporary or long-term basis in its own name by gif~ purchase, tranefer, foreclosure, lease, option, or otherwise, including easements or other incorporeal rights in proverty. (g) To ho~d, sell, assign, lease, encumber~ mortgage, or otherwise dispose of any reaI or personal properi~j ot any interest therein. (h) To borrow money, i~ue Bonds, and enter into agreements, as provided in this ahapter. (i) To employ attorneys and such other personnel as may be necessary to accomplish the purposes ~f this chapter; (j) Notwithstanding Section 19058 of the Government Code, to make temporary appointments to all pr~fesdonal staff positions for nine months or until such time as employment lists are pretmred for such positions by the State Personnel Board. (k ) To do any and all thjngs necessary to carry out its purposes and exercise the powers expressly granted b~l this division. ' Am'de 3. Bonds. 8699.20. Authori~ to ls~ue Bonds. The Corporation may from time to time issue Bonds in a principal qmount which the Corporation determind~ necessary to provide suffiei_'ent funds for the following purposes: ~ (a) Q~alified l. ow-inCOme housing development projects; (b) For any ather purp°,se set forth in this chapter,. (c) For the refunding of any Bonds. In conneetion wi[h, or incidental to, the sale and issuance of the Bonds, the Corporation is authorized to provide for or cause to be provided fqr bond issuance, credit enhancement or liquidity agreements or any contracts determined to be necessary and appropriate, to place the investment in whole or in part, on the interest rate, currency, cash-flow, or other basis desired by the Corporation. The Bonds may be made payable in whole or in part, in curren~ other than lawful money of the United States if the Corporation so provides. 8699.21. Payment of Bonds. Except as may otherwise be expressly provided by resolution of the Corpotation, every issue of its Bonds shall be considered a general obligation of the Corporation payable out of any assets, revenues, or moneys of the Corporatior~ subject only to any agreements with the holders of particular Bonds pledging ony particular assets, revenues, or moneys. 8699.£2 BesoluO'on Authorizing Bonds. The Bonds shall be authorized b~, resolution or resolutions of tbe Corporation. Said resolution or resolutions shall prescribe tbe form of tbe Bonds, shall fix the date or dates and the time or times of maturity of the Bonds and shall appoint a Trustee. The Bonds may be issued as serial bonds or as term bonds, or as a combination thereof, and, notwithstanding any other provision of laW, the amount of principal of, or interest on, Bonds maturing at each date of m~turity need not be equal. The Bonds shall bear interest at such rate or rates, be in such denominations, be in such form, be executed in such manner, be payable in such medium of payment at such place or places within or without the state, and contain such term~ and conditions as such resolution or resolutions may provide. The Bonds of the Corporation shall be sold at public or private sale b!~ the State Treasurer at, above, or below par value, on such tertus and conditions and for such consideration in such medium of payment as the Corporation shall dgtermine by resolution prior to the sale. Neither the members o?the Corporation nor any person executing the Bonds shall be liable personally On the Bonds or be subject to any personal liabili~ or accountability by reason _of the issuance thereof 8699.23. Savings Bonds, In order to permit and encourage the participation of small investors in programs dssigned to alleviate hunger and homelessness in California, the board shall ~e empowered to authorize the issuance of zero coupon bonds or savings bonds in denominations not exceeding $100, provided that such bonds may only be authorized by a resolution conforming with the provisions of Section 8699.22 and other applicable prove'OhS oft_his article. 8699.24. Provision for Redemption. In the resolution or resolutions providing 124 for the issuance of the Bonds, the Corporation may provide for the call and redemption of all or any part of the Bonds on any interest payment date prior to their fixed maturity. The Bonds to be called for redemption prior to maturity shall be selected in such manner as the corP°ratton may set forth in such resolution or resolutions. Ifa Bond is subject to call and redemption a statement to that effect shall be set forth on the face of the Bond. 8699.25. Provision for Befunding. (a) The Corporation may provide fo_r the issuance of Bonds of the Corporation fo_r the purpose of refunding any Bonds or any series of Bonds of the Corporation then outstanding including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption, purchase, or maturity of the Bonds. (b) The proceeds of any Bonds issued for the purpose _of refu_nding ,of outstanding Bonds may, in the discretion of the Corporation, tie applied to the purchase, redemption prior to maturi~, or retirement at maturity of any outstanding Bonds on their earliest redemption date or dates, upon their purchase or maturity, or paid to a third person to assume the Corporation's obligation to make the payments, and ma~t, pending that application, be placed in escrow to be applied to the purchase, retirement at maturity, or redemption on the date or dates determined by the Corporation. ~ (c) Any proceeds placed in escrow may, pending their use, be invested and reinvested in obligations or securities authorized by resolutions of the Corpor?- tion, payable or maturing at the time or times as are appropriate to assure the prompt payment of the principal, interes~ and redemption premium, if any~ of the outstanding Bonds to be refunded at maturity or redemption of the Bonds to be refunded either at their earliest redemption date or dates or any subsequent redemption date or dates. The interes~ income and profits, if any, earned or realized on any such investment ma~t also be applied to the payment of the outstanding Bonds to be refunded or to the payment of interest on the refunding Bonds. After_ the terms of the escrow have been fqlly satisfied and carriedout, any balance of the proceeds and interes~ income and profits, if any, earned or realized on the investments thereof may be returned to the Corporation for use by the Corporation. (d) All of the refunding Bonds are subject to this chapter in the same manner and to the same extent as other Bonds issued pursuant to this chapter. 8699.26. Separate Accounts Created Pursuant to Bondholders' Agreements. Pursuant to any agreements with the holders of pam'cular Bonds pledging any particular assets, revenues, or moneys, the Corporation may create separate accounts in tbe fund to manage assets, revenue, or moneys in the manner set fort.h in such agreements. 8699.27. Investment of Surplus Funds. The Corporation shall from time to time direct the State Treasurer to invest moneys in the Fund which are not required for its current needs, including proceeds from the sale of any Bonds, in such eligible securities specified in Section 16430 of the Covernment Code as the Corporation shall designate. Article 4. California Housing Fund. 8699.30. Creation of Fund. (a) There is hereby created within the State Treasury the California Housing Fund, which is continuously appropr~ted for carrying out the purposes of this chapter without regard to fiscal years. Unlbss otherwise ordered by the board of directors, the fund shall receive all proceeds of loans issued by the Corporation, all net proceeds from the sale of Bonds, and an amount equalto not less than ten percent o_f all penalties collected under Division ££.$ of the Health and Safety Code. The Treasurer shall designate a depository to receive proceeds of such penalties for transmission to the State Treasury and for deposit in the California Housing ~'und. (b) Pursuant to a finding by the board that significant additional funding is available fr_om other sources and that the need for funding under this article is substantially reduced, the board may by resolution transfer moneys from the Cal~ornia Housing Fund to the California Emergency t[ousing end Nutrition Fund. 8699.31. Disbursements from the California Housing Fund. Funds shall be disbursed from the California Housing Fund at the direction of the board of directors to public or private agencies for any of the following purposes: (a) To provide long-term debt financing for qualified low-income housing development programs. For the purposes of-this articTe, "qualified low-income housing development programs" means those programs in which at least 30 percent of the program's units remain affqrdable, for a period of at least 30 years, to fa_rallies earning below 50 percent of the area median income. (b) To fund the development of foreclosed and other distressed properties held by financiid institutions. (c) To establish a mortgage guarantee program for quahfied Iow- income purchasers. (d) To provide short-term low-interest loans to qualified low-income housing development programs, not to exceed five years in duration, for predevelopment costs, including, but not limited to, site control, title searches, and preliminary drawings. (e) To accomplish any other purpose set forth in this chapter, as determined by the board of directors. Article $. California Emergency Housing and Nutrition Fund 8699.40. Creation of Fund. There is hereby created within the State Treasury the California Emergency Housing and Nutrition Fund, which is continuousl~l appropriated for carrying out the purposes of this article without regard to fiscal years. Unless otherwise provided by resolution of the board of directors, the Fund shall receive eight!t percent (80%) of all proceeds of penalties collected under Division ££.$ of the Health and Safety Code. The Treasurer shall designate a depository for all such penalties for.transmission to the State Treasury and for deposit in the California Emergency Housing. and Nutrition Fund. 8699.41. Disbursements from the California Emergency Housing and Nutri- tion Fund. Funds shall be disbursed from the California Emergency Housing and Nutrition Fund at the order of the board of directors for the following purposes.. (a) To counties for the purpose of providing temporary housing and food for persons in immediate need of either, or both, for expanding the availability of health and nutrition programs~ employment services, education, and other basic services, and to create new and rehabilitated units of permanent low-cost housing; provided that no more than eighty seven and one half percent (87-~ %) of the annual proceeds of the Fund may be used for these purposes; and provided further that the board may disburse funds to other political subdivisions of this state where historic service patterns or populatio~ factors shah in the judgment of the board require such disbursements. (b) For administration, staffing and personnel expenses, policy development, and research; for demonstration projects in service or geographic areas where new service types or patterns are needed,, and for modelprograms developed or to be developed by private nonprofit organizations for the purpose of enhancing the ability of service providers and program advocates to communicate with one another and to have access to relevant and timely information in order to strengthen their qffectiveness in increasing the availability and quality of services for hungry and homeless persons; provided that no more than twelve undone half percent (1£-~ %) of the the annual proceeds of the Fund may be used for these purposes. (c) The board of directors shall require that ninety percent (90%) of all funds disbursed pursuant to subdivision (a ) of this section shall be allocated-among the counties in the same proportions as processing agencies within each county have transferred monies to the California Emergency Housing and Nutrition Fund, pursuant to Section 31040 of the Health and Safety Code, within the preceding fis_~, l year. In allocating funds prior to the termination of the first fiscal year following the effeative date of this chapter, the board may utilize such lesser time period as it shall deem appropriate. 8699.4£, Grant Application Procedure. Prior to the allocation of any moneys from the California Emergency Housing and Nutrition Fund pursuant to the provisions of Section 8699.41(a), any county requesting disbursements shall submit an application for funds in such form as required by the board of directors. The application shal[ include a copy of a county plan prepared pursuant to Section 8699.43, and shall also include, but shall not be limited to, the following information.. (a) Data reflecting the full extent of the problem of hunger and homelessness within the recipient county, the number and resources of existing agencies within the recipient county which are responsible in whole or in part for alleviating the problem, and the amount of additional resources which the applicant believes will be required to fully alleviate the condition of hunger and homelessness within the recipient county; (b) A description of programs for the alleviation of hunger and homelessness in which the recipient is currently engaged, including data reflecting the cost and the amount of service provided by such programs; {c) A description of programs for the alleviation of hunger and homelessness in which the recipient proposes to engag6 including data reflecting the antici- pated cost and the amount _of service provided by such programs. {d) Evidence that the pli;n has been coordinated with and reviewed by the Federal Emergency Management Act Board(s), if such Boards exist in the county. (e} Such additional data as the board of directors may require. 8699.43. Adoption of County Plans. Any county appl!tingfor an allocation of moneys from the California Emergency Housing and Nutrition Fund shah prepare and submit wit7~ the application provided for in Section 8699.4£ a county plan. The plan shall be prepared in accordance with the following terms and conditions: (a) The Board of Supervisors shall appoint a committee of no fewer than nine members~ or may utilize an existing committee which otherwise satisfies the requirements of this section. The committee shall include representatives of cities within the county which provide homeless or nutrition programs, representatives of local Housing Authorities, and public or private agencies providing services to homeless or hungry persons within the county. The Corporation may require additional membership on this committee. (b) In consultation with, and pursuant to guidelines and regulations promul- gated by, the Corporation, the committee shall prepare a plan addressing problems of hunger and homelessness within the county. The plan shall include such information as required by the Corporation. The plan must provide for transitional as well as crisis se, vices, and may propose funding for the following programs: (i) Existing and proposed emergency shelters for homeless families and individuals. Such shelters must include an array of short-term supportive services and transitional services. Funds may be used for staffing and operational cos,%' as well as capital outlay. Funds may be used for emergency needs, such as storage services or daytime service centers. (ii) Existing and proposed transitional housing services. (iii) Existing and proposed emergency food services; costs of transportation and storage of surplus food and distribution to agencies serving the hungry and homeless; home delivered meal services for elderly or adult disabled individuals who are at risk of becoming homeless or institutionalized. (iv) Existing and proposed nutrition information and referral prograrr~ which assist in the receipt of benefits from existing federal state and other emergency programs, or which promote maximum statutory and regulator~ flexibility for increasing participation in such programs. (v} Existing and proposed health screening services in homeless and emergency sites. These may include referral for treatment of alcohol and drug dependency. G88 (vi) Existing and proposed job counseling and ?eferral programs for persons using emergency housing or nutrition services. Such services shall be designed to meet the needs of specific groups, such as adolescents~ single adults, and heads of household. (vii) Existing and proposed child care and education services designed to assist homeless or hungry persons find employment or perrrmnent housing or to address critical development needs of homeless chiMren or adolescents. Such services may be on-site or provided through vouchers usable in ~vmmunity child care and development programs. Services may include counseling and referral programs which support the enrollment of homeless adolescenl~ in programs which ensure their independence. Services may include youth crisis intervention programs, where the county plans show they are lacking. (viii) Existing and proposed emergency rent assistance programs or utility hook-up programs, security deposit revolving loan funds, and vouchers for single-room occupancy or other resident'al hotels. (ix) Existing and proposed medical and pcychdogieal referral and social support services for the mentally ill. 8699.44. Approval of County Plans. Prior to anY/disbursement of funds to any county pursuant to the provisions of Section 8699.41 (a), the board shall review or cause to be reviewed and shall approve that couniy's application and county plan. The board may impose upon any disbursemeni or grant of funds to any county such terms and conditions as it shall deem necessary to further the purposes of this chapter. The board shall provide bit regulatioh a method for ensuring compliance with the terms and conditions qf any disbursement or grant of funds, and may alter, reduce, or terminate disbursements or grants to any county which fails or refuses to comply with such terms or conditions. 8699.45. Use _of Funds. Funds disbursed pursuant to this chapter shall only supplement and not supplant funds previously allocated for these purposes. Funds may be used fo_r both capital and operating cost~, as specified in the county plan. No county shall be required to divert existing funding for mental health, alcohol or drug programs to provide for services under this chapter. SECTION 4. Section 26586 of the Health and Safely Code is hereby repealed. pmoeies m~ be ~rd ~cforc him ~ his roprcscntativ~s. informal hc~,rlng :~all be p~','atc ~ li~,,,itcd te gtb~iene ef ~ Appearances ........... as ~e One correctness e~ ~e ....... ~ made br the ~ ............. ~ One cxamination ~ pcrforming t-he anal?:i:. SECTION ~. Section 2Cx~87 of the Health and Safet~ Code is hereby amended to read: 26587. When Findings to be Certified to District Attorncy. If the examination or analysis is found to be correct, e~ K troy been ~:!)' g~, the health officer may certify the facts found to the district attorney of the county. Ne publication ~ be cc~ncl-adcd. SECTION 6. Section 2680'2 of the Health and Safe~ Code is hereby amended to read: 2680~,. One-half of all fines eolleeted by any eourt or judge for any violation of may provision of this division, except as provided in s~t~on $1040, shall be paid into the State Treasury to the credit of the General Fund. SECTION ?. Section P, fo812 of the Health and S,,af.,e,~ Code is hereby repealed. E~IE. q:he dopartmcnt i~ n~ ~ t~ d:;4;:o.~ ~ ~ ;':ola,%.~; ~ t~ ~ SECTION 8. Division ~.~ (commencing with Section 31000) is hereby added to the Health and Safety Code to read: DIVISION 22.5. ENFORCEMENT OF HOUSING AND FOOD PREPABATION LA WS CHAPTER I. OFFENSES AND GENEBAL PROVISIONS 31600. Statement of intent. It is the intent of the peOple to provide through this Division an alternative method for enforcement of housing and food preparation laws in order to supplement, but not itc replace, misdemeanor . enforcement. To this end, the People herebg find and declare that t~. probl .e~L~s' of hunger and homelessness are matters o£ statewide coOcern~ and that a uniform citation system of fines and penalties for housing and food preparatio? offe~es is required in order to ensure statewide conformity in en].orcement. It is thejur#ter intent of the People that this division shall be mar[datory upon all countie~ issuing agencies, and processing agencies in this state. 31001. Infraction Penalties. Notwithstanding any other provision of law imposing a greater penalty, any person who violates any proof, ri'on cfa. ny par~ chapter of a division, or division included within Section 3.10t72 is guilty of an infraction, and upon conviction shall be subject to a penatty not to exeeed two hundred fifty ($£50) dollars. Each day's violation is a separate and distinct of£~e. 31002. Violations of Housing and Food Preparation Laws. For the purposes of this division, and notwithstanding any other provision of law, a violation of any provision of the following parts, chapters cfa dioisiorg or divisions of this Code, or any standard, rule, or regulation adopted or prOmulgated pursuant to the following parts, chapters cfa division, or divisions of ~his Code, shall constitute an infraction and not a m~sdemeanor, except as proin'ded in Section 31003: (a)Part 1.5 (commencing with Section 17910) `of Division 13, relating to buildings for human habitation,, the building stand~rds published in the State Building Standards Code relating to the provisions of Part 1.5 of L~'oision 13; or any other rule or regulation promulgated pursuant to the provisions of Part 1.5 of Division 13. 125 (b) Chapter 5, exclusively, of Division 21 (commencing with Section 26000), relating to food. (c) Chapter 4 (retail fq~_ facilities), Chapter 5 (cold storage), Chapter 5.5 (frozen food), Chapter 6 (bakeries), Chapter 7 (food sanitation), and Chapter 12 (frozen foods), exclusively, of Division 22 (commencing with Section 27000), relating to foods, restaurants, bakeries, frozen foods, and retail food processing. 31003. Misdemeanor Penalties. Notwithstanding any other section of this chapter, any violation ora provision of a part, chapter of a division, or division, included within Section 31002, or a standard, rule, or regulation adopted or promulgated pursuant to a provision of a part, chapter of a division, or division, included within Section 31002, may in the discretion of the prosecutor be charged as a misdemeanor, punishable as provided in the respective part, chapter of a division, or division so violated, whenever the condition causing the violation continues to exist unabated for twenty-four (24) hours from the time and date of the tirst notice of violation ~issued pursuant to this division, or if the condition results in injury to any person. Prior notice ora violation shall not be an element of the misdemeanor offense. 31004. Construction. Except as spe~citically provided, the provisions of this division shall not be construed as repealing, either directly or by implication, any of the existing sections in tht parts, chapters of any division, or divisions, included within Section 31002, but shMl be construed as constituting an alternative method of enforcing the provisions Of those parts, chapters of divisions, or divisions. It is not intended that any of thgpowers or rights grantdd to state or local agencies to enforce the parts, chapters ojC divisions, or divisions, included within Section 31002 be weakened in any manni& including, but not limited to, the power or right to enter or inspect premises, ! to seek abatemen~ to seek injunctions, to require registrations, permits or lidenses, to suspend or revoke registrations, perry, its or licenses, to seize, embargo, cluarantine, tag, condemn any building or article or to declare an article a nuisance. 31005. Amendment anti Bepeal. This division may be amended or repealed by the procedures set forth in this section. If any portion of subdivision (a) is declared invalid, then subdivision (b) shall be the exclusive means of amending or repealing this division. (a) This division may be amended to further its purposes by statute, passed in each house by rollcall vote ~ntered in tfte journal, two-thirds of the membership. concurring, and signed by the Governor, if at least 12 days prior to passage in eectt house the bill in its final farm has been deBvered to the board for distribution to the news media and to ev~rtt person who has requested the board to send copies of such bills to him or her. (b) This division may be amended or repealed by a statute that becomes effective only when approved blt the electors. CHAPTE]{ 2. PBOCEDUBE ON VIOLATIONS 31010. Application of Chapter. This chapter governs the procedure for enforcement and prosecution of any infraction offense dbfined in Section 31002 of this division. 31011. "Processing Agency': For the purposes of this division, "processing agency" means any city, county, court within a county, or private vendor, or any subdivision of any such entity, which processes notices qf parking violations qnd notices of delinquent parking violations pursuant to the provisions of A~'cle. 3 (commencing with Section 40200) of Chapter 1 of Division 17of the Vehicle Code. 31012. "Issuing Agency'~ For the purposes of this division, "issuing agency" means any entity of state ot local government empowered to enforce the provisions of any part, chapter of a division, or division of this Code included in Section 31002, except any processing agency detined in Section 31011. 31013. "Issuing Agenctj Ofticial'~ For the purposes of this chapter, "issuing agency officiql' means a~iy person employed by an issuing agency for the purpose, in whole or in part, of enforcing the provisions of any part, chapter ora division, or division of this Code included in Section 31002. 31014. Notice: Contents and Procedure. Notwithstanding any other provision o~law, an issuing agency Ofticial may prepare in triplicate, on a form approved the Judicial Council, a written notice of violation when the enforcement official has reasonable cause to believe that anti person has violated a provision of a part, chapter of a division, or division included in Section 31002. For all such violations, notice shall be given as follows: (a) A t the time of the discovery of the infraction, the enforcement official shall personally present to the person believed to be in violation, if present on the premises, a notice se~'ng f. o. rth the violation, Such notice shall include reference to the section and subdivision of this Code so violated, the time and date of the inspection, a brief description of the substance of the violation, and a time and place for appearance by tie violator. The time specified shall be at least ten. days after such notice of violati'on is delivered. Every written notice of a violation pursuant to this section sh~ll also include a statement of the penalty and fees fo_ r that violation and the address of the person authorized to receive a deposit of the penalty, to whom payments thereof may be sen~ and a statement in bold print that payments of the penalty for such offenses may be sent through the mail. The giving of notice pursuant to this section shall be complete upon delivery of a copy of such notice to such perSOn. (b) Ifa person believed to be in violation of this chapter is not present on the premises at the time of tbe discovery of the infraction, the issuing, agency oftic(al shall cause a copy of the notice descnY~d in subdivision (a) of this Section to be deposited in the United States mail addressed to the violator at his or her current address, as shown by the reCOrds of any public agency. Such copy shall be mailed within 48 hours of the inspection at which the infraction was discovered The delivery of notive pursua~It to ?his subdivision is complete upon the expiration of 10 days after the deposit bf such notice. 31015. Place to Appea~. The place specified in the notice of violation shall be the offices of the processing, agen~ nearest to the site of the violation. 31016. Amount of Penalty, The infraction penalty imposed under this divi- 126 sion shah be established by the issuing agency in consultation with the court subject to the same limitations as bail and surcharges established under Section 1269b of the Penal Code and Chapter 12 (commencing with Section 76000) of Title 8 of the Government Code. The Judicial Council, in consultation with the courts, shall ensure that the infraction penalties are reasonable and, to the extent possible, uniform throughout the state. In addition, the Judicial Council shall work with local issuing agencies and the courts to ensure, to the extent possible, that a minimum of $50,000,000 per year and a maximum of $90,000,000 per year is collected in infraction penalties storewide. 31017. Processing Fee. Notwithstanding any other provision of law, includ- ing but not limited to any provision relating to state funding of trial courts by block grants or other means, each processing agency ma~ assess a processing fee for each violation in an amount, as determined by the processing agency, that is sufficient, together with other such fees, to provide a total amount equal to the actual costs of the processing agency and courts in processing all infraction citations issued under the provisions of this chapter. 31018. Termination of Proceedings. If the infraction penalty and processing fee are received by the person authorized to receive the deposit of the infraction penalty by the time and date fixed for appearance on the notice of violalion, the proceedings under this chapter shall terminate. 31019. Contest of Proceedings. If a person appears before the person autho- rized to receive a deposit of the infraction penalty in response to a notice of violation and contests it, the processing agency shall proceed in accordance with Section 31024, 31020. Notice of Delinquent Violation. (a) If the payment of the infraction penalty and processing fee is not received by the person authorizgd to receive a deposit of the in_fraction penalty by the time and date fixed for appearance on the notice of violhtion, the processing agency shall serve or mail to the person believed to be in violation a notice of delinquent violation. ( b ) Delivery of a notice of delinquent violation under this section may be made by personal service or by first-class mail addressed to the person believed to be in violation. 31021. Contents of Notice. The notice of delinquent violation shall contain the information specified in Section 31014, and additionally shall contain a notice in bold type tha~ unless the person believed to be in violation makes payment of the penalty, or causes payment of the penalty to be made, in person or through the mail within ten days after mailing of the notice of delinquent violation, a warrant for the arrest of the person may be issued. If the person appears before and makes payment to, or sends payment by mail to, the person authorized to receive a deposit of the penalty within ten court days of the mailing of the notice of delinquent violation, the penalty shall consist of the amount of the original penalty. 31022. Copy of Original Notice of Violation. Within ten days o_f a request, by mail or in person, the issuing agency shall provide to any person who has received a notice of delinquent violation, or his or her agent, a photostatic copy of the original notice of violation. The issuing agency may charge a fee sufficient to recover the actual cost of providing the copY, not to exceed two dollars ($2). Failure to comply with a request fora copy of the original notice of violation shall constitute a dismissal of the charge. 31023. Appearance; Termination of Proceedings; Referral to Court. (a} lf the person served with a notice of delinquent violation, or his or her agent, appears before the person authorized to receive a deposit of the penalty and makespayment of the penalty and any applicable assessments and fees, the proceedings under this chapter shall terminate. (b) If the person served with a notice _of delinquent violation, or his or her agen~ appears before the person authorized to receive a deposit o_f the penalty and refuses to pay the penalty and any applicable assessments and fees, or otherwise contests the notice of delinquent violation, the processing agency shall proceed in accordance with Section 31024. (c) Ifa complaint has been tiled in court pursuant to theprovisions of 31027, the person served with a notice of delinquent violation shall be refqrred to the court, and the processing agency shall take no further action on the notice of delinquent violation. (d) If the person served with a notice qf delinquent violation does not appear before the person authorized to receive a dbposit of the penalty, or otherwise make payment of the penalty and any appBcable assessments and fees, within the time stated on the notice of delinquent violation, the prOcessing agency shall file a complaint and a copy of the notice of delinquent violation with a court of competent jurisdiction, and proceedings shall be had in accordance with Section 31027. 31024. Procedure upon Contest of Violation. (a) If the person served with a notice of violation or a notice of delinquent violation appears before the person authorized to receive a deposit of the penalty and contests the violation, the processing agency shall do either of the following. (1) If the processing agency is sat(stied that the violation did not occur or that the person served with a notice of violhtion or a notice of delinquent violation was not responsible for the violation, the processing agency shall cancel the notice of violation or notice of delinquent violation and make an adequate record of the reasons for canceling the notice; or (2) The processing agency shall set a trial date and provide documentation to the court as specified by local court rule. Except as the rules may provide otherwise, the processing agency shall record the person's name and address, and verify whether the person appearing has received a notice of violation conforming to Section 31014 or a notice of delinquent violation conforming to Section 31020. If the person appearing has not received the notice of delinquent violation conform- ing to Section 31020, the processing agency shall serve the person with a notice of delinquent violation conforming to Section 31020. The processing agency shall G88 assign a specific date and time as approved by the court for appearance by the person contesting the violation and shall then file a complaint and a copy of the notice of delinquent violation with the court pursuant to Section 31027 within 15 days. The processing agencTt shall notify the person contesting the violation of the fiBng and the date and time for appearance. Thereafter, all proceedings including the collection of any penalties and fees shall be conducted by the court in the same manner as infraction violations of the Vehicle Code. (b) Neither the outcome of a processing agency's action pursuant to paragraph (1) of subdivision (a) of this section, nor the court's verdict upon a referral pursuant to paragraph (£) of subdivision (a) of this section, shall be admissible in any subsequent criminal proceeding. 31025. Circumstances Bequidng Termination of Proceedings on Notice of Delinquent Violation. The processing agency shall terminate proceedings on the notice of deBnquent violation in either of the following cases: (a) Upon receipt of collected ~enalties and applicable fees for that notice of deBnquent violation. The termination under this subdivision is by satisfactio,n of the penalty. (b) Upon a verdict of not guilty from a court of competent jurisdiction. 31026. Deposit of Penalties. Any penalties which arc received by a processing agency or court under this chapter shall be deposited pursuant to chapter 3 of this division. 31027. Filing of Complain¢ Notice of Delinquent Violation,. Jurisdiction of Court (a) When a processing agency files a complaint with the court pursuant to Section 31023 or Section 310£4, a copy of the notice o£ delinquent violation issued for service under Section 31020 shallb~ filed with the court within 15 days and, if prepared in the form approved by the Judicial Council shall be treated as a written notice to appear. (b) After filing of a complaint or a notice of delinquent violation under this section, the court shall exercise all further jurisdiction over the violation. Any fines or forfeitures collected by the court, after filing of a complaint, shall be collected, deposited, and disbursed pursuant to the provisions of chapter 3 of this division. CHAPTEB 3. DISPOSITION OF FUNDS 31040. Disposition of Funds. Notwithstanding any other provision of law, Proposition 96: Text of Proposed Law Continued from page 71 should continue to monitor their oum health and should consult a physician as appropriate." If the person subject to the test is a minor, copies of the test result shall also be sent to the minor's parents or guardian. (e) The court shall order all persons, other than the test subject, who receive test results pursuant to Sections 199.96 or 199.97, to maintain the confidentiality of personal identifying data relating to the test results except for disclosurc which may be necessary to obtain medical or psychological carc or advice. (f) The specimens and the results of tests ordered pursuant to Sections 199.96 and 199.97shall not be admissible evidence in any criminal or juvenile proceed- ing. (g) Any person performing testing, transmitting test results, or disclosing information pursuant to the provisions of this chapter shall be immunc from civil liability for any action undertaken in accordance with the provisions of this chapter. 199.99. Custodial Safety. (a) Any medical personnel employed by, under contract to, or receiving payment from the State of California, any agency thereof or any county, city, or city and county to provide service at any state prison, the Medical Facility, any Youth Authority institution, any county jail, city jail, hospttal jail ward, juvenile hall, juvenile detention faciliOt, or any other facility in which adults are held in custody or minors are detained, or any medical personnel employed, under contract, or receiving payment to provide services to persons in custody or detained at any of the foregoing facilities, who receives information as specified herein that an inmate or minor at such a facility has been exposed to or infected by the AIDS virus or has an AIDS-related condition or any communicable disease, shall communicate such information to the officer in charge of the facility in which such inmate or minor is in custody or detained. (b) Information subject to disclosure under subsection (a) shall include the Proposition 98: Text of Proposed Law Continued from page 79 XIIIB, up to a maximum of four percent (4~o) of the total amount required pursuant to Section 8(b) of this Article, to that portion of the State School Fund restricted for elementary and high school purposes, and to that portion of the State School Fund restricted for community college purposes, respectively, in proportion to the enrollment in school districts and community college districts respectively. (1) With respect to funds allocated to that portion of the State School Fund restricted for elementary and high school purposes, no transfer or allocation of funds pursuant to this section shall be required at any time that the Director of Finance and the Superintendent of Public Instruction mutually determine that current annual expenditures per student equal or exceed the average annual expenditure per student of the ten states with the highest annual expenditures per student for elementary an~d high schools, and that average clas size equals or is less than the average clas size of the ten states with the lowest class size for elementary and high schools. (2) With respect to funds allocated to that portion of the State School Fund G88 including but not limited to any provision rclating to state funding of trial courts by block grant or other means, the total amoun~ of penalties received by a processing agenc~j or court under this division shall!be allocated as follows: (a) A n amount equal to ten percent shall be rctained in the county treasury or general fund, at the direction of the Board of SuPervisors, for the purpose of paying administrative costs incurred by issuing agel:cies under this division; (b) An amount equal to eighty percent shall be transferred each month to the California Emergency Housing and Nutrition Fund, pursuant to the provisions of Section 86R9.40 of the Government Code;. Ca(,C.)~ An amount equal t.o ten percent s. hall be tragrferred each month to the lifornia Housing pitnc~ pursuant to the provisions of Section 8699.30 of the Government Code. (d) All processing fees shall be deposited with the County for reimbursement to the processing agency or court. (e) Pursuant to a finding by the board of dircctors of the Corporation for California that amounts retained in county treasuries ant?general funds under subdivision (a) of this section are insufficient to pay administrative costs incurred by issuing agencies under this division, the board may increase the allocation of funds under subdivision (a) of this section up to but not exceeding an amount equal to twenty-five percent (25%) of the total amount o_f penalties received by a processing agency or court under this division, and may make such other allo?ations _of funds to the California Emergency Hbasing and Nutrition Fund and the CalifOrnia Housing Fund as may be required to achieve the purposes of this subdivision. 1 ' 3 041. State Funding of Courts. Except as prooided in Section 31017 and 31040, nothing i? this division (s intended to f:ffect, reduce, or othertvise alter the parti.ci, pation oJ any county in t.he Court Funding Trust Aceount or other progran~r providing state funding of trial courts pursuant to Chapter 13 (commencing with Section 77000) of Title 8 of the Government Code. SECTION 9. To the extent that this Act is inCOnsistent with any other governmental statute or special act or parts thercof ,this Act is controlling and shall be liberally construed to effect its purpose. SECTION 10. If any provision of this Act, or the application of any provision of this Act to. any perso.n or circu, mstance, shall be held invalid, the.remainder of this Act, to the extent that it can be given effect, shall ~ot be affected thercbg and to this end the provisions of this Act are severable. . fAOllowing: any laboratory test which indicates exposure to or infection b~ the IDS virus, AIDS-related condition, or other communicable diseases; any state- ment blt the inmate or minor to medical personnel thi~t he or she has AIDS or an AIDS-related condition, has been exposed to the AIDS virus, or has any commu- nicable disease; the results of any medical examinationlor test which indicates that the inmate or minor has tested positive for antibodies to the AIDS virus, has been exposed to the AIDS virus, has an AIDS-rclated condition, or is infected with AIDS or. a.n.y communicable disease; provided, that information subject to disclosure shatt not include information communicated to o~ obtained by a scientific research study pursuant to prior written approval e~ressly waiving disclosure under this section by the officer in charge of the facility. (c) The officer in charge 9f the facility shal£ notOCy ail employees, medical personnel, contract personnel, and volunteers providi[;g services at such facili~ who have or malt have direct contact with the inmate vt minor in question, or with bodily fluids from such inmate or minor, of the substance of the information received unddr subsections (a) and (b) so that such persons can take appropriate action to provi_de for the care of such inmate or minor, :the safety of other inmates or minors, and their own safety. (d) The officer in charge and all persons to whom information is disclosed pursuant to this section shall maintain the confidentiality of personal identifying data regarding such information, except for disclosure authorized hereunder or as may be necessary to obtain medical or psychological eare or advice. (e) Any ~erson who wilfully discloses personal identifying data regarding information obtained unde~ this section to any person who is not a peace officer or an employee of a federal, state, or local public health agent, except as authorized hereunder, by court order, with the written Consent of the patient or as otherwise authorized by law, is guilty of a misdemeanor. SECTION 2. Effqctive Date; Betrospective AppBcation. This initiative and its statutory amendments shall take effect the day after the election and shall be construed to apply retrospectively to pending complaints and petitions, regardless of when the underlying actions took place, and to in_formation subject to diso[osure hereunder obtained prior to its effective date, to the maximum extent permitted by law. restricted for community college purposes, no transfer or allocation of funds pursuant to this section shall be required at any time that the Director of Finance and the Chancellor of Community Colleges mutualiy determine that current annual expenditures per student for community colleges in this state equal or exceed the average annual expenditure per student of the ten states with the highest annual expenditures per stuclent for community colleges, (b) Notwithstanding the provisions of Article XlllB~funds allocated pursuant to this section shall not const~'tute appropriations ~bject to limitation, but appropriation limits established in Article XIIIB shall be annually incrcased for any such allocations made in the prior year. (c) From any funds transferred to the State School Fund pursuant to para- graph (a) of this Section, the Controller shall each year allocate to each school district and-community college district an equal amount per enrollment in school districts from the amount in that portion of the State $chool Fund restricted for elementary and high school purposes and an equal amount per enrollment in community college districts from that portion of the State School Fund restricted for community college purposes. (d) All revenues allocated pursuant to subdivision (a) of this section, together 127 with an amount equal to the total amount of revenues allocated pursuant to subdivision (a) of this section in all prior years, as adjusted if required by Section 8(b) (2) of Article XVI, shall ~e expended solely for the purposes of instructional improvement and accountability as required by law. (e) Any school district maintaining an elementary or secondary school shall develop and cause to be prepared an annual audit accounting for such funds and shall adopt a School Accountability Report Card for each school. SECTION 7. Section 33126 is hereby added to Article 2 of Chapter of 2 of Part 20 of Division 2 of Title 2 of the Education Code to read as follows: 33126. School Accountability Report Card In order to promote a model statewide standard of instructional accountabilihj and conditions for teaching and learning, the Superintendent of Public Instruc- tion shall by March 1, 1989, develop and present to the Board of Education for adoption a statewide model School Accountability Report Card. (a) The model School Accountability Report Card shall include, but is not limited to, assessment of the following school conditions: (1) Student achievement lin and progress toward meeting reading, writing, arithmetic and other academic goals. (2) Progress toward reduta'ng drop-out rates. (3) Estimated expenditures per student, and types of services funded. (4) Progress toward reduCing class sizes and teaching loads. (5) Any assignment of teachers outside their subject areas of competence. (6) Quality and currencg of textbooks and other instruc~'onal materials. (7) The availability of qualified personnel to provide counseling and other student support services. (8) Availability of qualift'ed substitute teachers. (9) Safety, cleanliness, a~d adequacy of school facih'ties. (10) Adequa~ of teacher evaluations and opportunities for professional improvement. (ll) Classroom discipline and climate for learning. (12) Teacher and staff training, and curriculum improvement programs. (13) Quality of school instruction and leadership. (b) In developing the statewide model School Accountability Report, the Superintendent of Public InStruction shall consult with a Task Force on Instruc- tional Improvement, to be appointed by the Superintendent, composed of practicing classroom teachets, school administrators, parents, school board mem- bers, classified employees, a~d educational research specialists, prow'ded that the majority of the task force shall consist of practicing classroom teachers. SECTION 8. Section 35256 is hereby added to Article 8 of Chapter 2 of Part 20 of Division 3 of Title 2 of t.he Education Code to read as follows: 35256. School Accountability Report Card The governing board of each school district maintaining an elementary or secondary school shall by 'S~ptember 30, 1989, or the beginning of the school year develop and cause to be intpl~emented for each school in the school districta School Accountability Report Cardt (a) The School Accountability Report Card shall include, but is not limited to, the conditions listed in Education Code Section 83126. (b) Not less than triennially, the governing board of each school district shall compare the content of the School district's School Accountabili~ Report Card to the model School Accountability Report Card adopted by the State Board of Education. Variances among school districts shall be permitted where necessary to account for local needs. (c) The Governing Board of each school district shall annually issue a School Accountability Report Card for each school in the school district, publicize such reports, and notify parents ~r guardians of students that a copy will be provided upon request. SECTION 9. Section 41300.1 is hereby added to Article 1 of Chapter 3 of Part 24 of Division 3 of Title 2 of the Education Code to read as follows: 41300.1 Instructional lmprovement and Accountability. The amount transferred to Section A of the State School Fund pursuant to Section 8.5 of Article XW oyr the State Canstitun'on shall to the maximum extent fqasible be expended or encumbered during the fiscal year received and solely for the purpose of instructional improvement and accountability. (a) For the purpose of this section, "instructional improvement and account- ability"shall mean expendltures for instructional activities for school sites which directly benefit the instruction of students, and shall be limited to expenditures for the following: (1) Lower pupil-teacher ratios until a ratio is attained of not more than 20 students per teacher provich'ng direct instruction in any class, and until a goal is Proposition 100: ~knalysis Continued from page 8g · Creates an office of Insurance Consumer Advocate in the State Department of Justice, and · Establishes a Senior Bureau of Investigations in the Department of Insurance to assist senior citizens with health-care insurance. Good Driver and Other Motor Vehicle Insurance Pro- visions 1. Bate Beduetic~ns. This measure requires insurance companies to reduce motor vehicle insurance rates for 128 attained of total teacher loads of less than 100 total students per teacher in all seconda~ school classes in academic subjects as defined by the Superintendent of Public Instruction. (2) Instructional supplies, instructional equipment, instructional materials and support services necessary to improve school conditions. (3) Direct student services needed to ensure that each student makes academic progress necessary to be promoted to the next appropriate grade level. (4) Staff development which improves services to students or increases the quality and effectiveness of instructional staff designed and implemented b7 classroom teachers and other participating school district personnel, including the school principal, with the aid of outside personnel as necessary. Classroom teachers shall comprise the majority of anal group designated to design such staff development programs for instructional personnel. (5) Compensation of teachers. (b) ~unds transfer/ed to each school districl, pursuant to this section shall be deposited in a separate account and shall be maintained and appropriated separately fr_om funds from all other sources. Funds appropriated pursuant to this section shall supplement other resources of each school district and shall not supplant any other funds. SECTION 10. Section 14020.1 is hereby added to Article 1 Chapter I of Part 9 of Division 1 of Title 1 of the Education Code to read as follows: 14020.1. Instructional lmprovement and Accountability. The amount transferred to Section B of the State School Fund pursuant to Section 8.5 of Articlg XVI of the State Constitution shall to the maximum extent feasible be expended or encumbered during the 9ear received solely for the purposes of instructional improvement and accountability. (a) For the purposes of this section, "instructional improvement and account- ability"shall mean expenditures for instructional activities for college sites which directly benefit the instruction of students' and shall be limited to expenditures for the following: (1) Programs which require individual assessment and counseling of students for the purpose of designing a ~rriculum for each student and establishing a period of time within which to achieve the goals of that curriculum and the support services needed to achieve these goals, provided that any such program shall first have been approved by the Board of Governors of Community Colleges. (2) Instructional supplies, instructional equipment, and instructional materi- als and support services necessary to improve campus conditions. (3) Faculty development which improves instruction and increases the quality and effectiveness of instructional staff as mutually determined by faculty and the community college district governing board. (4) Compensation of faculty. (b) Funds transferred to each community college district pursuant to this section shall be deposited in a separate account and shall be maintained and appropriated separately from funds from all other sources. Funds appropriated pursuant to this section shallsupplement other resources of each community college district and shall not supplant funds appropriated j%m an~ other source. SECTION 11. Section 14022 is added to the Education Code to read as follows: 14022. (a) For the purposes of Section 8 and Section 8.5 of Article XVl of the California Constitution, 'enrollment' shall mean: (1) In community college districts, full-time equivalent students receiving services, and (2) In school districts, average daily attendance when students are counted as average daily attendance and average daily attendance equivalents for services not counted in average daily attendance. (b) Determination of enrollment shall be based upon actual data from prior years and for the next succeeding year such enrollments shall be- estimated enrollments adjusted for actual data as actual data becomes available. SECTION 12. Section 41302.5 is added to the Education Code to read as follows: 41302.5. For the purposes of Section 8 and Section 8.5 of Article XVI of the California Constitution, 'school districts' shall include county boards of educa- tion, county superintendents of schools and direct elementary and secondary level instructional services provided b~ the State of California. SECTION 13. No provision of this Act may be changed except to further its purposes by a bill passed by a vote of two-thirds of the membership of both houses of the Legislature and signed by the Governor. · SECTION 14. Severability If any provision of this Act, or the application qf any provision o_f this Act to any person or circumstance, shall be held invalid, the remainder of this Act, to the extent that it can be given effect, shall not be affected thereby, and to this end the provisions of this Act are severable. good drivers on January 2, 1989. The reductions would: · Lower rates 20 percent below those charged on January 1, 1988; · Apply to private passenger vehicles, trucks with a load capacity of 1,500 pounds or less, and motor- cycles; and · Apply to the liability, medical payment and collision portions of the insurance rates. This measure generally defines a good driver as a person who during the last three years (1) held a valid driver's license, (2) had no more than one moving violation, and (3) had no accident in which he or she was G88 principally at fault. Additionally, the person can never have been convicted of various crimes including driving under the influence of alcohol or drugs, automobile insurance fraud, or theft of a motor vehicle. This measure allows the Insurance Commissioner to exempt a company from this rate reduction under certain conditions and after a public hearing. 2. Territorial Rating. The measure prohibits insur- ance companies from setting automobile insurance rates based on where the insured person lives (referred to as "territorial rating"), unless there is clear and convincing evidence that such a method is a valid indicator of claims experience. 3. Consumer Assistance. The measure requires the Department of Insurance to establish a statewide system to provide individuals with information comparing the prices of automobile insurance. As part of this system, the Department of Motor Vehicles would notify individuals that information on automobile insurance prices is avail- able from the Department of Insurance. 4. Investigations of Fraud. Currently, the Depart- ment of Insurance investigates various types of insurance fraud. This measure requires insurance companies to pay an annual fee to finance increased investigations of automobile insurance fraud. At-Fault Liability System This measure declares that "... persons who wrongfully cause damages to others in the ownership or operation of a motor vehicle should be held legally responsible for the full extent of the injuries they cause." This could be interpreted to affirm the current system of at-fault motor vehicle liability, thereby restricting other systems such as "no-fault" insurance. Review and Approval of Insurance Rate Filings This measure requires insurance companies to provide the Department of Insurance with information on how they determine their insurance rates by January 2, 1989. Additionally, this information must be provided when- ever rates are changed. This requirement applies to such insurance as motor vehicle (including rates for good drivers), fire, liability and disability. The principal excep- tions are life and workers' compensation insurance. In general, the measure requires the Department of Insurance to hold a hearing and review and approve rate changes whenever the proposed rate increase exceeds specified percentages. The department may exempt cer- tain types of insurance--except private passenger auto- mobile insurance from the department's rate review and approval process. Office of the Insurance Consumer Advocate This measure establishes this office in the State Depart- ment of Justice to participate in insurance-related pro- ceedings. The Attorney Generalmwho is the head of the Department of Justicemwould appoint the Insurance Consumer Advocate. Seniors Bureau of Investigations This measure establishes this bureau in the Depart- ment of Insurance to assist senior citizens with health- care insurance policies. It also regulates various business practices relating to seniors' health-care insurance. Other Provisions 1. Attorney Fees. The measure Provides that, except for existing statutory limits on attorney fees, fees for all types of cases shall not be set bylaw, but are to be negotiated without restriction by th~attorney and client. 2: Claims Settlement Practices. The measure requires an insurance company to act in good faith toward, and to deal fairly with, its policyholders and third persons. 3. Conflict-of-Interest Employment. The measure prohibits the Insurance Commissioner and the Insurance Consumer Advocate from being eml~loyed by an insur- ance company, insurance trade association, or any broker or agent licensed by the Department of Insurance for a period of 12 months after leaving their respective posi- tions. 4. State Antitrust Laws. The measure makes insur- ance companies subject to the state'S antitrust laws. 5. Sale of Insurance by Banks., The measure also expands the authority of commercial banks to sell all types of insurance. Generally, under current insurance law, banks can only sell insurance which pays off a loan in the event of the disability or death of a borrower. 6. Discounts or Rebates. The measure permits insur- ance agents and brokers to give certain discounts or rebates to those who buy insurance from them. It does so by eliminating the prohibition in current law against such discounts or rebates. Fiscal Effect Costs Departments of Insurance and Justice. This measure appropriates $10 million from the Insurance Fund to pay for the administrative costs of its provisions in 1988-89. Of the amount appropriated, $8 million is for the Depart- ment of Insurance and $2 million is for the Department of Justice. The Insurance Fund is supported by fees and assessments on the insurance industry. Given the current balance in this fund, fees and assessments would have to be increased to cover these additional administrative costs. In the years following, the ongoing costs could be somewhat lower or higher, depending on workload. Department of Motor Vehicles (DMV). The Depart- ment of Motor Vehicles would incur a~nual costs of about $100,000 to include notices regarding the availability of information on automobile insuranee~ prices in its annual renewal mailings. Revenues Insurance companies pay a tax based on the amount of gross premiums they receive each year from insurance sold in California. These tax revenues are deposited in the State General Fund. This measure requires insurance companies to grant a good driver discount. It also requires i the Department of Insurance to review certain proposed insurance rate changes. Information from the DMV indicates that over half of the drivers in California could quality for the good driver discount. Such discounts, by !themselves, would reduce state insurance tax revenues by about $~.0 million in the first year they are granted. This estimate assumes that no offsetting adjustments would be made in other insurance rates to compensate for thi~ discount. Whether such adjustments would occur is unkt~own. The ongoing revenue impact of this measure also is 129 unknown. It would depend upon what happens to insur- ance rates in the future. Department of InSUrance. The Department of Insur- ance would receive unknown revenues, possibly over Proposition 100: Text of Proposed Law Continued from page 87 11629.604 Rollback of rates. (a) Effective January 2, 1989, every insurer shall adjust its rates for good drivers for bodily injury, property damage liability, medical payment, and collision coverage such that those rates are at least 20 percent less than the amounti charged for the comparable risks as of January 1, 1988. (b) Any insurer may petition the Insurance Commissioner for partial or complete exemption from th~ provisions of subdivision (a) of this section on a showing, by clear and convincing evidence, that its overall rates for private passenger automobile insurance would be inadequate pursuant to the provisions OaffteSection 1852 of the Insurance Code. No such petition shall be granted except r a public hearing compbding with the provisions of Sections 1852.4, 1852.5, 1852.6, 1852.9, and 1852 of the Insurance Code. 11629.605 Automobile insurance rating plans. (a) Every insurer shall file with the department its automobile insurance rating plan and every amendment thereto. The commissioner shall disapprove any automobile insurance rating plan inconsistent with this article. (b) The commissioner shall not permit the use of any automobile insurance rating plan that discriminates on the basis of race, language, color, religion, ancestry, or national origin. ~ (c) The commissioner shall not permit the use of any automobile insurance rating plan that discriminates on the basis of geographic territories not justified, by dear-and-convincing evidence, to be valld a predictor of losses. (d) Every automobile inSUrance rating plan shall, to the maximum extent practicable, provide that rat. e{ for any vehicle for which the principal operator has held an operator's license for at least three years, shall depend on driving record. (e) Every automobile insurance rating plan shall provide at least a 20 percent discount for every good driver, when compared to a driver having similar characteristics but not qualifying for the good driver rate. 11629.606 Right to hearing on claims of discrimination. (a) Every pers. o.n who claims to have been the victim of unfair discrimination in automoOite insurance rates may petition the commissioner for a hearing on that claim. If the petition establishes a prima flwia case of unfair discrimination, the commissioner shall conduct a hearing, to -u~hich Sections 1852.5, 1852.6. and 1852.9 shall apply. The insurer has the burden ff proof in the hearing. (b) The Commissioner shall as a part of the filing requirements adopted pursuant to Section 1852.1, require the filing of a schedule for private passenger automobile insurance, showing: (1) Current and historic pure-premium losses and loss adjustment expenses, on both a paid and an incurred basis, by territory and zip code; and (2) The ratio of those losses and expenses to statewide losses and expenses of the insurer, and the territorial rating factor for each territory. 11629.607 Consumer assistance in shopping for automobile insur- ance. (a) The commissioner shall contract to establish a computerized system to store and retrieve price-comparison data on basic automobile insurance. The system shall be available no later than July 1, 1989. (b) Upon determination of feusibility by the commissioner, which may be before or after July 1, 1589, the commissioner shall contract for the provision of computer terminals in publicly available locations throughout the state, which will provide price-comparison data to consumers on a walk-in basis for a reasonable fee. (c) Every vehicle registration renewal notice shall contain a notice of the availability of price-comperlson data and a form which the recipient may return to the Department of lnsurance requesting comparative price quotations for basic automobile insurance on his or her vehicle. The form shall require sufficien, t information from the vehiale owner to establish the appropriate rate for the vehicle from the information filed by each insurer pursuant to subdivision (b) of Section 11629.603. (d) Within fifteen days of receipt of a request for comparative price quotations, the Department of Insurance shall mail to the requestor a listing of relevant price-comparison data, containing information on no less than the six lowest-cost insurers (or fewer where less than six offer coverage for the requestor) including but not limited to: (1) The name 9f each iasurer; (2) The rate charged for basic automobile insurance by that insurer,. (3) The address and telephone number where the requestor may apply for coverage, The commissioner may include information on service quality and consumer satisfaction. (e) The application for price comparison data shall be kept confidential. Upon completion of the reques~ tile application shall be destroyed. (f) The commissioner shall establish a fee schedule for (1) requests for price comparison data, which shall not exceed three dollars per vehicle, and (£} filings made pursuant to subdivision (b) of Section 116£9.603. SECTION 5. Reform of the Assigned-Risk Plan Section 11624.2 is added tO Article 4 of Chapter 1 of Part 3 of Division 2 of the Insurance Code, to read as follows: 11624.2 Any person ma~ submit an application for coverage by the plan directly to the Department of Insurance or the Department of Motor Vehicles, which shall immediately fo~b~ard the application to the organization operating 130 $500,000 annually, from fees paid by insurance companies on automobile policies. These revenues would be used to fund increased insurance fraud investigations. the plan. The commissioner shall require that rates charged to such applicants shall not include any charge for commission in recognition of the fact that no agent is involved in the transaction. SECTION 6. Investigation and Prosecution of Automobile-Insurance Fraud Section 12998 is added to Article 5 of Chapter 2 of Division 3 of the Insurance Code to read: 12998. Each insurer shall pay an annual fee, to be determined by the commissioner but not to exceed 10 cents for each automobile liability policy, automobile physical damage policy, automobile collision policy, as those terms are defined in Section 660, and any combination thereof delivered or issued for, delivery in this state, for the purpose of funding increased investigation and prosecution of fraudulent automobile insurance claims. All moneys received by the commissioner pursuant to this section shall be transmitted to the State Treasury to the credit of the Automobile Insurance Fraud Investigation and Prosecution Account of the Insurance Commissioner's Regulato~ Trust Fund, which account is hereby created. All moneys in such account are hereby continuously appropriated to the department and are to be used exclusively by the Bureau of Fraudulent Claims and authorized governmental agencies for the investigation and prosecution of fraudulent automobile insurance claims. The commissioner shall by regulation adopt standards for the fair and equitable distribution of grants to authorized governmental agencies, as defined in Section 13003, to further the purposes of this section. SECTION 7. Public Hearings Chapter 3 of Division 3 of the Insurance Code is added to read as follows: CHAPTEB 3 PUBLIC HEABINGS 13600. Notwithstanding any other provision of law, whenever, the Corn. mis- sioner is required to hold a hearing, the hearing shall be conducted in accordance with the following: (a) Reasonable notice shall be given of the purpose and nature of the hearing and of the opportunity for public participation. (bJ Any person desiring to do so shall be provided a reasonable opportunity to present his or her views. (c) An administrative record shall be compiled, containing all evidence upon which the decision is based, all admissible evidence offered by any party, all documents required by law to be filed with regard to the subject of the hearing, and all comments made by any person. Except as provided by Section 1852.9, tie record shall be open to examination by any person. 13601. Any hearing fgr the purpose of reviewing or adopting a rate, rating plan, rating system, underwriting rules, policy forms, or classification system shall be conducted as follows: (a) Any insurer w~iose rates, rating plan, rating system, or underwriting rules are to be reviewed in the proceeding and the Insurance Consumer Advocate shall be deemed a party to the proceeding. Any person may petition to intervene in the proceeding. The petition shall be granted except where the commissioner deter- mines that the position of the petitioner is already fully represented by another party and that intervention by the petitioner wouM be unduly burdensome. Upo, n the granting of the petition the petitioner shall be deemed a party to tt;e proceeding. (b) A ny person wishing to comment on matters relevant to the hearing and not desiring to invoke the provisions of subdivision (c) of this section shall be permitted to make such comments, orally or in writing upon such terms as the commissioner may prescribe for the orderly conduct of bnsiness, and need not file a petit~'on to intervene or become a party. (c) Any party shall have the right to engage in discovery, to call, examine, and cross-examine witnesses, to introduce exhibits, and to compel testimony and production of records by subpoena in accordance with the provisions of Section 11510, subdivisions (b) and (c), of the Government Code and Sections 1985, 1985.1, and 1985.2 of the Code of Civil Procedure, subject to the reasonable control of the commissioner. Oral evidence shall be only on oath or affirmation. SECTION 8. Fair Insurance Rates Section 1850 of the Insurance Code is repealed. rca-.:la.'Ang in~u-ra.-:cc ratc~ a~ kcrck-: prc:'idcd t~ the ~ ~ t4~ ~ ~ ~e c×ccg;:;'c, ~nadequatc ~ un. ar,y dtscnm~natory, t~ ~ ~ ~ ~ organ~ations ~ ad;'b~ry organigatiom and ~ att aa.-:'.:..c~ :.-:ourcra, ~ t-e c.u...c~r:zc eoopcratlon ~c ................ m ~ makk*;g ~t other rc!atcd mattcr;. t~ ~ t~ ~.~ ........... ~f t4~is ~ ~ ~ ~ ........ ~ competition t~ give t-he Corm, n~oncr e ..... t~ fbi ~ ............ ~ ~ .~;'c! b~ clarification ~ c, tkcrwi:c. Section 1851 of the Insurance Code is amended to read as follows: 1851. Scope. The provisions of this chapter shall apply to all insurance on risks or on operations in this ;late State, except: (a) Reinsurance, other than joint reinsurance to the extent stated in Article 5. (b) Life insurance. (c) Insurance of vessels or craft, their cargoes, marine builders' risks, marine roteetion and indemnity, or other risks commonly insured under marine, as istinguished from inland marine, insurance policies. Inland marine insurance G88 shall be deemed to include insurance now or hereafter defined by statute, or by interpretation thereof, or ff not so defined or interpreted, by ruling of the commissioner Commissioner or as established by general custom of the business, as inland marine insurance. (d) Title insurance. (e) Di:aSility ~ ~3r Workers' compensation insurance and insurance of any liability of employ- ers for injuries to, or death of, employees arising out of, and in the course of, employment when this insuranco is incidental to, and written in connection with, the workers' compensation insurance issued to the same employer and covers the same employer interests. +g+ (f) Mortgage insuranco. ~4~ (g) Insurance transacted by county mutual fire insurers or county mutual fire reinsurers. (h) Cooperative corporations whose members consist solely of physicians and surgeons, except as set forth in Article 1 of Chapter 3 (commencing with Section 1280.5) of this part. Article 2 of Chapter 9 of Part 2 of Division 1 of the Insurance Code is repealed and added to read as follows: Ar,~clo ~. M?2dng ami ;3se ~ pcrtalning t-e ~ c!a;:c: e~ in;urancc ~ ;;'hick t-he prc'.'i;icns e~ ~ chaptcr ~ Eatc: aha!! ~ be cxcc::i;'c e~ madoquatc, a~ ................. ~ ~ be unfair!7 discriminatory, N~ ~ shall be kcla t-e be ~ ~mtess +1+ suck ~ is unre~onably kigk ~ ~ inaurancc ~ m~l ~ a rca;anab!c de%e~e e~ compctition docs ~ i~ ~ arcs wi,_ va:pact t.e ~ d~ification t,e ~ sack ~ is ~ Ne ~ ~ be ~ t.e be inadequatc m4e~ 31-)- sack ~ is unre~onably ~, t-be ingurancc pra'.idcd ~ +S3r t4~ ccn.~nucd ~ e~ ~ ~ ee,4ai, vge~ ;c!'.'cnoy e~ t-be in:urcr ~ ~ saeee&, ev utdess ~ ~ ~ is unreasonably ~e~ t-he in:urancc pra;'idcd anet t+,e t~e e~ :uck ~ 1~ t4~e 'Lnsurcr using sa.mc e~ ff can,',inucd ~ kava, t4~ cffcct e~ dc:.aymg eompctition e~ crca5mg Considcration ~ be b~,, t-e ~ este~ app--, t-e ~ ~ pro:poe, t4ve t~ cxpcricncc wltkin ae~et cut:ida ~ Stoic, t-e conflallration a~4 cat~trophc .hazards, ~ ~ rca:cnablc ma~ ~ undcrwriting ~ matt contingcneics, ~ pro~poetivc cxpcn:c: bath country/widc ~ ~ ~ a-pptk-~P~e ~ out:ldo t4~ Stoic; s~4 i~ t-be e~e e~ ~ insuranco ~ considoration t4~ e~ e~ ~ ~ in:urancc bu:incs: ~urL':g t4~e moot ~cccnt Considcration ma~ ~ be b4~e~ i~ 14~ ~ a~t ~ e~ rata: te di','idcnd:, ...... ~o el' unabsorbcd ~ depesi~ ........ el, ......... 1~ .........t~ ..... policyholdcrs, mcmkcrs e~ subscribors. 3~' ~ ~ystcm: ~ cxpansc pra;~:icr.: included i~ t4~ rates i;~ t~e ......... ~e ....... ttte~v ....... ~ .......... e~ s~ msm~ e~ g~,~p ......... t~ troy k4n4 t4 in:ara.nee, ~ with ~ t.e a~ :ubdl;~sian e~ combination tkcrccf. ~ P, bk: m~ be g~,~pe4 by dt~aificatiom f~ tt~ cstablishmcnt ~ ratcs mm:mu,- pram ....... Cl~aification ..... may be mc ..... ~ ~ ..... ........... ~ m ~eon:lanec wit-h ...... s v .............................. may ......... tmy ........... a ...... ~ .....t4~ ..... s~. ....... eg, ee~ ~ ...... ~ ex-pen,aec. Gtasaifications ay modifications ~f classifications ~f vishs ma~ be ~ .................... v ~, c ...... v , management, ~ cxpcrloilec, ~ e~ ~.-v ....... e~ haee~, e~ a~ ................ corradorations cla~sification~ tm4 modificatiom :hall apply ~ ~t ~ andar t~ :ama mbstantially ~ :amc circumstanocs ~ candltlon:. I°=,,,,3. £ukjact ~e ~ it~ complianco ~ t-be ~ e~ t-~ chaptar authorizing insurers t~ be --^-~- ...... ~"--'~' ..... '~-0 .a.-. .......... :-~ ~.on: o~ t-o cng:ga i~ joint undcn~iting ~ ~ rcimurancc, ~ o~ marc ina;;rcrs v ......... ~ t~ ~ ......... ~ ~ ~ ~ ...... ~ o~ ........ ~ prcparati0n ~ ..... in:ur:acc p~ ~ ~ fo,-ra~, undcn~iting rulc:, ~ i~ invcstigati0ns, ~ ~ ~ t~ ~ cxpcn:c :ta~a,tlca ~ othcr iMo~mati0n data ~ ~ ~,~ ~ rcacarck. ..... ~ .........,~.., t~ airy ......... v .......~the~~es~ o: ........ tq~ prcparati0n ef ........ ~ ~ ...........petiey ~ ~ ~ ........... ~ ..... e ........ ~ mvcstigati0m, ~ fu .......... ~ ~ ~ ef e~p .......... ~ ...... ~nf0rmati0n ae,4 ..... ~ carr/;ng ~ ~ ~e:carck, ~ ~ marc ........ ed ................ ~ a eom ......~ ~~m ~ ..... u ..... .......... managcmcnt ~ ........ , a~e ...... · ........... l-~ ae~ ~ e~ ~ t4~fm~W, es t4~ :amc as i~ thc)' constituted ~ :ing!a in:uror, ~ e,xeeut4~ ouch bond: m~e hcrcby autkcr:zcd ~e ae~ i~ canccrt bat;:'con e~ ar, cng tkcm:ol;'c~ t-be :amc as i~ tkcy constituted a ~ ~ ................. ~ ........... ef ~i~ et, ....... · orgamz~.tions may ~ rata:, ~ ~ undcrwriting ~qes e~ ~ e~ ~an~ .arms organizations, ci,..cr consistently e, intcrmittontl-y, ~ exeep~ as Fr$;%c~ organizations e~ ct.,crs t~ a~..crc t.crctc. ~ ~ t~ ~ ~ marc ......... , .......... e~ e,~ ........... e~ ;uk:c~kcr: ~ s rating e~ ad:~:aG' crgani::d ';,.~..,~- ~ ci,.cr eonsistcntly e~ intcrmittcntly, t-he ratm e~ ra,~,g Z,':,cm: marc a~aptc~ t~, a ~ organization, ~ t-be undcrwriting ~ e~ ~ ~, ....... ~,. ~, .... }~' t ...... ~ ~1' ....... ~ organization ......~ ~e ........... m G88 ~ ~ pu.-poac ~ supplcmcnting say ~ a~cnt. I~.7. ~ccn:c~ ra~ orgY:flora ~,i~afion ~~ ~ ~ ~ org~iza~ons ~ inaurcra ~ app!ica~on ~ ra~g aya~cma. ~~~ ~ ~oncr. ~cn~ ;k~ ~ ~ ~ ~ntmplatc ~ ~ ~ ........... m~tcnt ...... ~ ~ .......... ~ ~ .... ~ .... ~ ~ ~c a~c; ~ ag~t~ ~ prac~cc; ~ ~ ~ ~ ~ ~ ~ ur~air ~ ~r~onablc, ~ ~ ctkcr;;Sac in.toMtit ~~~ narco rcvoko approvfl ~ ~ ~ a~mcnt. ' ~ rag=g org~a~on, ~ or ganiz~on, ~ ~ ~ ~ ~ ztkcr org~a~on ~ .......................... r~ur~ ..... . ....... orgmma~on mcmbcr: tkcrccf, ~ conduct cpcra~cna Making and Use of Rata 1~2. Sta~ar& in ~king and using mt~. (a) No insurer shall charge a rote that ~ ~c~si~, inadequate, or unfqirly dis~minato~. (b) A rote ~ neither exc~ve nor inadequate ~ it gives the reasonably efficient i~r~ the op~nity to earn a net after-tax tatum ;on equity comparable to other busin~ses presenting a ~milar de~ree 1~2.1. FiBngs. (a) On or before Janua~ ~ 1~ every insurer or rating organi~Hon shall file ~th the ~mmissioner the manud or plan ff rotes, cl~fi~ons, rating sch~ule, poli~ fe6 m~'ng role, a~d other similar info~a- Hon n~ded to detemine the rote level then in effect fOr a line, subline, or class of instance. (b) Thereaftqg fiBngs shall be made whenever mtes are change~ as follows: (O Filings that change rotes but am ce~fied by the insurer not to exceed the applicable p~or appwval band, as d~n~ in Section t~2.2, shall be filed not later than the eff~tive date of the change and may ~ used immediate[y, subject to the autho~tg of the comm~goner to order othe~ise.: (2) Filings that change rates beTond the applicable p~or appro~l band shall ~ filed no later than ninety days ~efore the proposed effective date and shall not ~ ~ ~thout the prior approval of the comm~sioner. (c) E~ filing shall be accom~ni~ by suffi~nt supporting data to ~taMish that the rates are not exc~sive, inadequate, or unfairly disc~minato~. The ~p~'ng dam shall include, but not be limited to, the following: (1) Sup~ging actuaffal data in sufficient detail to justly an~ rate level chang~ and stat~tically demo~trate the d~ferences or correca'ons, or both, reliant to rating plan definitions and rate d~ferences. (2) An exhibit compaffng the proposed rat~ to the previous rates stated in ~rcentag~. This exhiMt shall show the date the preceding rates were submitted to the commissioner. A statement of all unde~ang mles im~sed b~ the insurer. The commisstoner shall adopt regulations sp~f~ing how multiple classes of wmm~Mal in~rance shall be aggregated into rate filings. Aggregation shall provide suf~nt infonet'on for the commissioner to make the findings required in this chapter. (e) For pu~oses of this article, a filing shall be deemed to have been made when rec~ by the comm~goner. If the commissioner determines that a filing is inad~uatelg do~mented, the filing shall not be deemed to have ~en made until the commisgon~ recei~ such supplemental matehals as he or she ma~ oyd~y. 1~2.2 P~or appro~l ~nds. (a) The applicable bands in any 12-month penM shall be: (1) Se~n and one-ha~ perc~t for personal lines. (2) F~teen p~nt for ang commer~al line, sub-line~ or class. (b) For pu~os~ of cal~lating rate change, no adjustment to the prior appro~l ~nds mag be made for any claimed subsidg of an~ state-mandated program such as the assigned-risk plan. Howeve~ in determining whether a filing meets the regulato~ criteria, the commissioner may Consider such claims of ~bsid~. (c) For pu~ses of dete~ining whether a rate change is within the applicable p~or approval ben,the ~feqt of the rate change on the insurerg state,de or te~toffal w~tten premiums shah determine the percen~ge rate change. 1~2.~ Dedsion whether to ham a hea~ng on the filfng. 131 (a) The commissioner shall publish a weekly list of all filings, which shall identify the filing insurer, the lines, sublines, or classes affected, the percentage change in rates, whether the insurer has certified that the filing is within the applicable prior appwval band, and other pertinent information. The list shall be provided by mail to any person who has, in the preceding twelve months, requested in writing receipt of the publication and paid any reasonable fee established by the commiss~'oner. (b) Upon receipt of a filing, the commissioner shall create a public record containing all informationjcontained in the filing. (c) Within twenty-five ~tays from the date of publication of the weekly list required in subdivision (a) of this section containing notice of the filing any person matt petition the qommissioner to hold a hearing on the filing. The petitions received shall become pert of the public record of the filing. Failure to file a petition shall not prei:lude any person from pem'cipating in any hearing if one is ordered. The petition shall be granted if it meets an!t of the following: (1) If the filing is outside the applicable prior approval band and the petition raises non-frivolous claims that the rates would be excessi~ inadequate, or unfairly discriminatory. (2) If the filing is within the applicable prior approval band and the petition contains competent evidence that the rates would be excessive, inadequate, or unfairly discriminatory. (d) The commissioner shall, notwithstanding the absence _of a petition, hold a hearing on any filing out{ide the applicable prior approval band to determine whether the rates set forth in the filing are excessive, inadequate, or unfairly discriminatory, if any of the following criteria are met: (1) It appears that insurers covered b~ the filing will be among the ten percent of the market paying the highest premiums. (2) The filing covers ttqo percent or more of a market. For purposes of this calculation, filings of affiliated compenies are deemed to have the market share of the entire group of affiliated compenies. (e) The commissioner may hold a hearing at any other time, before or afler the filing becomes effective, when it appears to him or her that the rates spefi'fied in the filing are excessive, inadequate, or unfqirly discriminatory. (f) Within ninety days;of a filing outdde the applivable prior approval band, the commissioner shall issue a -decision either approving or disapproving a filing or ordering a hearing on the filing, A decision to approve or disapprove a filing outside the applicable prior approval band shall be in writing and shall contain the findings required by section 1852.4. A decision to hold a hearing, and a decision denying a petitio~ for a hearing, shall be in writing and shall state the reasons therefor. 1852.4 Decision. (a) The commissioner shall issue a written decision, based on the evidence of record, approving or disapproving, in whole or in per~ any filing outside the applicable prior approval band and any filing on which a hearing is held. No portion of a filing shall be approved unless its rates are neither excessive, inadequate, nor unfairly discriminatory. (b) In determining whether rates are excessive, inadequate, or unfairly dis- criminatory, the commissioner shall make findings on each of the following: (1) The estimated premium volume, acquisition costs, administrative expenses, losses, loss-adjustment expenses, investment returns (including long-term capital gains), and taxes. (2) Historical losses per exposure and the basis for any deviation of the estimated future losses from past experience. (3) The extent of competition in the line, subline, or class of insurance in each affected territory, the ability of consumers to shop competing insurers effectively, and the extent to which competition in the line, subline, or class of insurance can be expected to maintain fair rates. (4) The relative efficiency of the insurer when compared to other insurers, including the insurer's use of cost-control programs. (5) The quality of sewice, based on all evidence before the commissioner including but not limited to complaints to the department. (6) The extent to which the rating eystem provides adequate incentives for insureds to minimize risks. (7) The extent to which the insurer assists its insureds in risk reduction. (8) The fairness of an~ underwriting policy of the insurer placed in issue by any party. (9) The need for, and expected availability of, reinsurance. (c) For filings outside the applicable prior approval bands, the burden of establishing that rates are not excessive, inadequate, or unfairly discriminatory shall rest with the filing Pnsurer. For filings within' the applicable prior approval bands, the burden of establishing that rates are excessive, inadequate, or unfairly discriminatory shall rest with the party challenging the rates. (d) The commissioner~ devision may order such adjustment in rates as may be necessary to prevent the rates from being excessive, inadequate, or unfairly discriminatory and may require refund of any premiums collected pursuant to an excessive or unfairly discriminatory rate. ~ ' (e) Except as extended for good cause, the decision shall issue within 90 days of the order to ham a hearing. 1852.5 Judicial review, (a) Notun'thstanding the provisions of section 185~6, judicial review of a commissioner's decision pursuant to this am'de, or of a decision not to ham a hearing pursuant to this article, mall be had btl petition for a writ of mandate pursuant to Section 1094.5 of the Code of Civil Procedure. (b) A decision of the qOmmission~er to holara hearing is not a final adminis- trative decision anal shall not be subject to judicial review. 1852.6 Intervenor funding. Any natural person, or any nonprofit organiza~ tion other than a nonprofit organization whose principal purpose is to serve the interests of for-profit bus~n, esses, may, if they have pamN'pated in ang proceeding conauetett pursuant to this article, apply for reimbursement of reasonable advocate's fees, expert Witness fees and other reasonable expenses of such 132 participation. Applications shall be made to the commissioner for reimbursement of the expenses of administrative proceedings and to the court for reimbursement of the expenses of judicial review. Awards shall be made after conclusion of the proceeding and shall be based on the reasonable cost of the services and the party's contribution to the decision. Awards shall be made only where the financial burden of private enforcement makes the award appropriate. If the person has made a substantial contribution to the proceeding, reimbursement shall be ordered. Reimbursement shall be paid b~l the insurer. If the commissioner finds that any person has abused the processes established by this act for personal gain or advantage, the commissioner may bar such person from appearing in any proceeding conducted pursuant to this article for a term not to exceed three years. 1852. 7 Exemptions. (a) This article shall not apply to any policy for which the annual premium exceeds $500,000. (b) The commissioner may adopt regulations exempting specified classes from the requirements of this article. No exemption shall be granted unless the commissioner finds: (1) The class has exhibited relative price stability in recent years. (2) There is sufficient competition in the market, and consumers have demon- strated widespread ability to shop freely among competitors, to support a finding that competition would prevent the maintenance of excessive rates. (3) The market does not have a history of excessive or inadequate prices. (4) The exemption will not contribute to problems of unavailability, unaffor- dability, or reduced coverage. (c) No exemption shall be granted for private-passenger automobile insurance. (d) Exemptions shall expire no more than three years after their adoption. They may be renewed by adoption of an appropriate regulation. 1852.8 Bat~'ng plans. (a) An insurer shall adhere to a filing unless changed by a subsequent filing. (b) The commissioner shall by regulation adopt standards for rating plans (including experience rating plans, schedule rating plans, individual risk pre- mium modification plans, and expense reduction plans) designed to modify rates in the development of premiums for individual risks. Such standards shall permit recognition of expected differences in loss or experience characteristics, and shall be designed so such plans are reasonable and equitable in their application, are not unfairly discriminatory, violative of public policy, or otherwise contrary to the public interest. Such standards shall not prevent the development of new or innovative rating methods which otherwise comply with this article. Such rating plans shall be filed in accordance with the regulations adopted by the commis- sioner. The regulation shall establish maximum debits and credits that matt result from application of a rating plan, shall encourage loss control, safety programs, and other methods of risk management, and shall require insurers to maintain documentation of the basis for the debits or credits applied under any plan. Once it has been filed and approved, use of the rating plan shall be mandatory and such plan shall be applied uniformly for eligible risks in a manner that is not unfairly discriminatory. 185£.9 Trade secrets. Any person seeking confidential treatment of informa- tion submitted pursuant to this article shall so -designate that information and shall state the grounds upon which coafidentiality is sought. Information shall not be treated as confidential unless the claimant proves that its disclosure is likely to cause significant competitive injury and that such harm outweighs the value of disclosure to the public. The person seeking confidentiality shall have the burde~ of making such a showing. A party, other than another insurer, shall have access to the conf(dential information under appropriate protective order. The commissioner shall adopt regulations providing guidelines for identifying confi- dential information. 1852.91 Transitional provisions. For purposes of computing the applicable prior approval band, no rate in effect prior to January 2, 1989, shall be considered. The commissioner, upon the motion of any person or on his or her own motion, may review any rate change made between ]anuary 1, 1988, and ]anuary 2, 1989, to determine whether the rate meets the requirements of Section 1852. A showing that an insurer has increased rates between ]anuary L 1988, and ]anuary 2, 1989, more than the increase in the California consumer price index shall be prima facia evidence that the rate charged on January 2, 1989, is excessive. 1853. Bating and advisory filings. (a) A licensed rating or advisory organi- zation may file historic loss cost data, which any member insurer may incorporate in the supporting documentation of its rate filing. The rating or advisory organization may not specify a fully developed advisory rate, maF not provide trending or specify prospective loss costs, and may not provide historic or prospective expenses, profit, or contingencies. (b) The commissioner may, aft_er a public hearing, exempt from the require- ments of this article for a period not beyond December 31, 1990, any insurer having nationwide gross premiums of less than five million dollars ($5,000,000.00), if the commissioner finds that there does not exist an available source of actuarial services sufficient to enable such insurers to meet the requirements of this article. This exemption may be extended to December ~1, 1991, upon a finding by the commissioner, after a public hearing, that such capacity remains unavailable. SECTION 9. Consumer Advocacy Article 9 is added to Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code to read as follows: Article 9 Office of the Insurance Consumer Advocate 12620. There is hereby created in the Department of ]astice the Office of the Insurance Consumer Advocate. 12821. The Attorney General shall appoint the Insurance Consumer Advocate, who shall re'sort directly to the Attorney General, who shall serve at the pleasure of the Attorney General. G88 12622. The Office of Insurance Consumer Advocate shall employ personnel sufficient to perform its duties. 12623. The Insurance Consumer Advocate may intervene as a matter of right in any judicial or administrative proceeding in which matters relating to insurance are involved. 12624. The Insurance Commissioner shall fully cooperate with the Insurance Consumer Advocate in any proceeding in which he or she appears before the commissioner and any proceeding to which thei/ are both parties. The cooperation shall include providing complete access to all records in the possession of the Department of lnsurance. 12625. The provisions of this a~'cle are not exclusive, and the remedies provided in this article shall be in addition to ani/ other remedies provided in any other law or available under the common law, 12626. Every rate filing and every petffion filed pursuant to Article 2 (commencing with Section 1852) of Chapter 9of Part 2 of Division 1 of the Insurance Code shall be simultaneously served on the Insurance Consumer Advocate. 12627. Sections 11042 and 11043 of the Government Code shall not applg to the Department of Insurance with respect to any proceeding to which the Insurance Consumer Advocate is a party. SECTION 10. Public Disclosure of Insurer Operations Section 926 is added to Article 10 of Chapter 1 of Part 2 of Division I of the Insurance Code, to read as follows: 926. At least annually, every insurer shall file with the department the following information: (a) Every form of policy, endorsement, and rider. (b) The following in_formation for each line and subline of insurance, and for each class designated bi/the commissioner, for each of the prior five years.. (1) Premiums written and earned. (2) Losses incurred, paid, and unpaid, including losses incurred but not reported separately stated. (3) Reserves, and indication whether the reserves are discounted to present value. (4) Expenses incurred and paid. (5) Investment income, including realized and unrealized capital gains. (6) The number and type of policies issued, renewed, cancelled, and not renewed, and the number of new policies. (7) California and nationwide rate level information providing the following: (A) The number of exposures. (B) The number of claims. (C) Commissions, general expenses, taxes, licenses and fees, and acquisition expenses. (8) Comparisons of the following: (A) Loss ratios for agents cancelled and for all agents for the most recent year. (B) Loss ratios for insureds cancelled or not renewed and for all insureds for the most recent i/ear of the experience period used for ratemaking. (C) The average deductible for the most recent year of the experience period used for ratemaking with the average deductible for the most recent sample gear available. (9) Schedule of commissions. (I0) Ani/ changes implemented to reduced or contain expenses. (11) Expenditures for (A) Trade association memberships. (B) Lobbying. (C) Political contributions. Subdivision (d) (1) of Section 6254 of the Government Code is amended to read: (1) Applications filed with any state agency responsible for the regulation or supervision of the issuance of securities or of f'mancial institutions, including, but not limited to, banks, savings and loan associations, industrial loan companies, and credit unions; ~ L'~surar,~ cc, n,pa.uic:. SECTION 11, Fair Competition Sections 750, 750.1, 751,752, 754, 755, 755.7, 761, and 1643 of the Insurance Code are repealed. o..cr ~ar.7,: .....l'~ off~ o~ p~, ....... ~ o~ ~ as ' ~ am' sub oet/mattcr m t46s ..... ~my rcbatc of t-he ....... ~ p~ of t-he eommi~ion thcrcon, ~ :uc~ rc~a,c is af~ un,aw.a. ..... Lcgulaturc ...... ~ ...... ~ ........ ~ of ti~e ......... r ........of .........~m4 .............. ~mt~ ........ oft-he ~, ....... ~ eomrm~ons ~s at~ ......... eomponcnt ~c ~ prcduccr bu:incs: practlcc:. ~ Lcg~slaturc ...... t0m~ the sta ................. ~ ................. ~ na.T. crau; eonsequcnecs (4~ ;;'cu!d eee~f m t-he abgcncc ef :',:ch rcg',:la,'icn, ~ ~ insolvcncics, unfair discrimination bc~;;ccn i,usurc~; wit~ e~, incrca:cfi concentration of in:urancc distribution ~ misroprcscntation ~ unctklcal :alas Frac:icc: :uch as .... : .... a ........ public. ......... ~tet~ ............ ~f t-he t~ is t4~e infant e~ t-he Lcgialaturc i~ ....... ' -~"~ -~^"-~" se~ fartk ~ ~ ~ ~ cnactmcnt, cantlnuing ~ Ami importance the .................. v ....... at~ eomm~ssmns ......... ........... , shall ~ ..... ~ ~ ....... : ~ .......... :, as G88 ol~- ....... rr ........ ~ r-~;';~*~ f~' m t-he ~.:~y, ~ app ......an fi~ t4~ :n~urancc, ~ ~ ~ eonsidcration ~,~ appcarlng m t-he ~ is a~ unlawful rc~atc. ~. ~y pc:~n namcd as ~ imurcfi i~ ~ ~ o~ namcd ~ the v ~ c~llgcc, i~ ~ ..... : ~...~ ~ ~ .~ .... ~ rcpr~cnta~vc ~ ~ such ~crscn '"~-,...~, dlrcctly ~ indlrcctly, knowingly acccpts ~ rc~civca ~ .._~_..x..~.,..,,,~, ,~,,~--~-'~ guilty ~ e misdcmcanor. , ~ Paymcnt; ~ ~mmiaiom ~ ~ ~ in~urcr; ~ ~kcir agcn:~ ~ in;urancc ob.crw~;c la ..... ~ ~ "-a- ~,cxpr~;ly authorize. ~ ~ pa)lng ~ allowing ~ ~ ~mmiaion ~ icthcr valuablc ~nsidcration c~tc~ undcr ~ ~dc ~ c~cmp~cd u~dcr ~ c~ ~ rcgukdcn, ;cbatc ~ guilt)' ~ ~ m~dcmcanor. ~ ~ ~ unlawful rc~atc ~ gu:fry ~ a m~dcm~anor. ~ limitcfl ~ ~ ~ ~ ~ ~ outstand~g kalaacc ~ ~ e :pccffic avant ~ ~ involuntary uncmploymcnt-~'~cbt~r,~ botk. ~ ~mmcraal ho..;n~ ~ ,,'..: .......... ~ author~atlon ~ ~ (cxc~pt ~ sunsuit authorization ~ czFaud ~i~ ~ ~ ;ukjcct (~mm~cm ~, ~ (~m cncmg authcrlzcd ~ traugact a Wast ~'-:~o.,,~oo ....... ~,~.~- ~ prPvi;icn: ~ Articlc ~ ........ ~ k ..... g ..... v .....w ............. a . ............... ~ dcFc;it: ~ ~ :tatc. , ~ "$u~idiary" ~ ~ ~oration, ~ociafio~, ~ partncrshp, aw~cd ~ .... ~:a.c ........ ~ ~rporahon ............. ~ ~ p~tncrsh~p ~ ~ ~ e ~ ~ ~catcr ~t~rcst ~ e c~mm~n ..... ~ .......... ~ ~ managcmcnt ~ ..... ifc; ~ ~ .................... ~ 5rckcr. Section 167~ of the Business and Professions Code is added to read as follows: 167~. Notwithstanding any other pwvision of la~ this chapter applies business of insurance. Nothing in th~ act shall pwhibit insurers or licensed rating or advisor~ organizations from engaging in joint actiw2~ W ~ol hisW~c loss data. Nothing in this act shalI prohibit i~urers from engaging in any joint activity ~issible under Chapter 9 (commendng with S~tion 1~) of Part 2 of Division 2 of the Insurance C~e, A~ic& 4 (commen~ng with Section 11620j of Chapter 1 of Pa~ 3 of Division 2 of the Insurance Code, or an~ other joint unde~riting ass~ation or organization established b~ law. Section 7~ is added to Chapter 6 of Division 1 of tha Fin~cial Code, to read follows: 780. No bank licensed as an insurance agent or bwke~ or which owns or contwb an insumnce agenc~ or bwke~ nor an~ direcW~ offi~e~ agent, employee or affiliate of any ~ch bank, shall require, as a condi~on precedent to financing the purchase of real or ~rsonal pro~rty or to &nding mone~ upon the se~ty of real or personal pw~y, or as a condition prerequ~iW for the renewal qf an~ such loan or for the pe~o~ance of any other act in connection therewith, that ~rson for whom the purchase is to be financed or w, whom the mone~ is W be l~ned or for whom the extension, wne~l or oth~ act is to ~ granted or ~o~ed negotiate any i~urance or renewal thereof thr~gh a ~rti~lar i~urance agent or bwke~ The provisio~ of Section ~71 of the Instance C~e shall also be applicable to this section. Section 781 is added to Chapter 6 of Division 1 of the Fin~ci~ Code, to read: 781. (a) The total investment b~ a bank, which has obtained a certificaw of 133 authority to transact any class of insurance business in this state pursuant to Part £ (commencing with Sectioi: 680) of the Insurance Code, into its insurance underwriting activities may riot exceed 10 percent of the capital stock and surplus of the bank. (b) A bank may make a loan or extend credit to, or purchase or invest in securities of, or issue a guarantee, acceptance or letter of credit, including an endorsement or standby letter of credig on behalf of, an insurer which is an affiliate of the bank only if (1) the aggregate amount of all such transactions between the bank and that insurer will not exceed 10 percent of the capital stock and surplus of the bank, and (2) the transaction is on terms and conditions that are consistent with safe and sound banking practices. Each such loan, extension of credit, guarantee, acceptance or letter of credit must be secured at the time of the transaction by collateral ham~ng a market value equal to at least 100 percent of the amount of the loan, extensio~ of credit, guarantee, acceptance or letter of credit. (c) As used in this section~ "affiliate"has the meaning set forth in Section 150 otfh the Corporations Code, and "insurer" has the meaning set forth in Section 23 of e Insurance Code. ~ Section 772 of the Financifll Code is repealed and reenacted, to read as follows: ~ ~ Notwithstanding t-he prz;~alzn: of ~ I~°,,,,5, and gx~jzct t-o ;'ack rcgu.a..zn: am~ fa,z: as t4ae ~upcnntcndent ma~ v ......... a ....ma~ ....... i~ t-he cap:.a.a.ac.:, obhgatiom,, ...................... rp 319r No st~4t corporation ~ ae~ as ~m a':a~: .......... v--,~, m ........ ~...,~ ~aa~:ra.':~ ~rv.::~.. ~ prohibition ......v,~ be ........ t-o ............. v ....... rcat~c~r.; wltk rca~ct t~ the ac.~vltlc: of aac~ corporationo. 772. Notwithstanding the provisions of Section 1335, and subject to such regulations and rules as the superintendent may prescribe, a bank may invest in the capital stock, obligationg or other securities of one or more corporations. SECTION 12. Truth and Fairness in Policy Forms Section aSl.S is added to the Insurance Code to read as follows: 381.5 The commissioner may examine policy forms used by insurers and may prohibit the use of any fomn he or she fin& to be deceptive, misleading, or contrary to the public interest. SECTION la. Fair Insurance Claims and Underwriting Practices Section 790.031 is added to Article 6.5 of Chapter 1 of Part 2 of Division 1 of the Insurance Code to read as follows: 790.031 Any person engaged in the business of insurance in the State of California is required to act in good fqith toward, and to deal.fairly with, current and prospective policyholders and other persons intended to be protected by any policy of insurance. A policyholder or a third-party may bring an action against an insurer or licensee for viaJation of the provisions of this article, including but not limited to subdivision (b) _of Section 790.03. In accordance with the Unruh Civil Rights Act, Civil Code section 51, an insurer shall not arbitrarily discriminate against individuals in the setting of insurance rates or in the denial of in~rance coverage. The purpose of this article is to regulate unfair insurance practices, including unfair claims practices, by providing state-court remedies, including compensa- tory and exemplary damages, to policyholders and claimants who are victims qf unfair insurance practices. It is specifically intended that these remedies be construed to regulate the business of insurance regardless of whether the policy was purchased individually or as a member ora group, and regardless of whether or not the policy was purchased or provided by or through an employer, and thereby to provide that state-law remedies are available notwithstanding the provisions of the Employee Retirement and Income Security Acg 29 U.S.C. section 1001 et seq. ~ Any award of punitive damages against an insurer shall not be passed on to policyholders directly or indirec?~. , ..... SECTION 14. ProhibitiOn at t,omtiets at xnterest Section 12907 is added to Chapter 1 of Division 3 of Part 6 of the Insurance Code to read as follows: 1290Z It is unlawful for any person who has served as Insurance Cam.mis- goner or as Insurance Consumer Advocate to accept any employment wit& to accept any compensation from, to undertake representation of or to hold a material financial interest ii any insurance company, insurance trade association, or licensee of the Department of lnsurance for a period of twelve months after leaving office. : SECTION 15. Responsibility for Automobile Accidents Section 3,333.6 is added tO the Civil Code to read: 3333.6 It is the witt of the People that persons who. wr. on~full,~ .eau, se,d,a, ma~el~ to others in the ownership Or operation of a motor veMcte snouts oe nets tega y responsible for the full extent of the injuries they cause. It is the intent of the People that the previsions of this act 'be construed to be in conflict with the provisions of any other initiative statute passed at the same election deaBng with compensation for motor vehicle accidents. Accordingly, it is the will of the People that any other provision of any other measure passed at the same election as this act and dealing with compensation for motor vehicle accidentg shall be of no force or effect unless the other measure receives a higher number of affirmative votes. SECTION 16. Seniors Health-Care Insurance Protection Article fi is added to Chapter 1 of Part 2 of Division 2 of the Insurance Code, to read as follows: 10198. There is in the Department of lnsurance a Seniors Bureau of lnvesti- gation. The bureau shall be!organized and operated exclasively fo_r the purpose of administering and enforcing the provisions of this article and bther provisions of law relating to seniors heMthware insurance policies. The bureau shal. l take O'll actions necessary to fully and faithfully implement the provisions of this articte, including but not limited to the following: (a) Receiving complaints from seniors. 134 (b) Investigating insurers, brokers, agents, and others engaged in the business of insurance. (c) Vigoroasly pursuing enforcement and disciplinary actions against insurers, brokers, agents, and others engaged in the business of insurance. (d) Informing and educating seniors about their legal rights as consumers of seniors health-care insurance policies. (e) Auditing insurers, brokers, agents, and others engaged in the business of insurance for compliance with legal requirements. (f) Evaluating policy forms and premium levels. (g) Recommending legislation and regulations to reduce the incidence of unfair and deceptive practices against seniors with regard to health insurance. The commissioner shall include within his or her annual report to the Governor a summary of the actions and accomplishments under this article. 10198.01 For purposes of this a~'cle, "seniors health-eare insurance policies" includes the following types of policies sold to seniors eligible for Medicare by reason of age: (a) ,4policy to supplement Medicare. (b) A dread-disease policy. (c_) A hospital indemnity policy. (d) A major-medical or surgical policy. re.) Skilled nursing home policies and long-term custodial or home health-care policy. (f) Other, similar policies. 10198.0£ All policyholders and prospective policyholders of seniors health- care insurance policies are entitled to all of the following: (a) The right to truthful and honest advertising. (b) The right to a fair return on their money. (c~ The right to fair salespractices. (d) The right to a readable policy. (e) The right to shop effectively in a competitive market for insurance. (f) The right to prompt and fair claims procedures and settlement practices. (g) The right to prompt redress of complaints. (h) The right to swift and meaningful enforcement of the law. 10198.03 An insurer, broker, agent, and other person en~aged in the business of insurance shall not knowingly recommend for sale, or setg an insurance policy to supplement Medicare insurance directly to a Medi-Cal beneficiary. Upon sale of any insurance policy to supplement Medicare, the policyholder shall sign and date a statement verifying that they are not eligible for, nor do they receive, .M. edi-Cal benefits. VeriJ?cation shall be required on the insurance policy enroltment or application Jorm. 10198.04 With regard to the provisions of this article, all insurers, brokers, agents, and others engaged in the business of insurance owe a policyholder or prospective policyholder of a seniors health-care insurance policy a duty of honesty, good-faith, and fair dealing. This duty is in addition to any other duty, whether express or impli-ed, that may exist. 10198.05 (a} No insurer, agent, broker, or other person engaged in the business of insurance or any other person or entity shall develop or use a list of names, addresses, or phone numbers compiled in a manner that has the capacity or tendency to deceive or mislead the policyholder or potential policyholder for the purpose of selling or otherwise transferring seniors health-care insurance policies. (b) No insurer, agent, broker, or other person engaged in the business of insurance or any other person or entity shall represent themselves as a government agency, nonprofit or charitable institution, or seniors organization, or represen- tative thereof, to any policyholder or prospective policyholder of a seniors health-care insurance policy in a manner that may have the capacity or tendency to deceive or mislead the policyholder or prospective policyholder. 10198.06 No insurer, agent, broker, or other person engaged in the business of insurance shall cause a policyholder to replace a seniors health-care insurance policy unnecessarily. It shall be presumed that any third, or grqater,.policy sold to~ a policyholder in any twelve-month period is unnecessary witltin tt~e meaning this section. 10198.07 No insurer shall pay or offer to pay, and no agent or broker shall accept, compensation for the sale of any seniors health-care insurance policy which varies by more ihan ten percent of the annual premium between the initial compensation paid or received for the first year the policy is in force, and any reneuml compensation paid or received in any subsequen, t year. This section applies even if renewal compensation is not offered or. paid. . . 10198.08 (a) Annually insurers shall submit to the commissioner t~eir toss ratio for each policy form of seniors health-care insurance, based on experience qf all policies issued or in foroe in this state during the preceding calendar year. The submissions of each insurer shall be public documents. The commissioner shall provide the Legislature and the Governor with a summary of said submissions. (b) After January 1, 1990, no seniors healthware insurance policy shall be sold in this state unless the policy's outline of coverage, as described in Section 10195, prominently and conspicuously displays that policy's loss ratio for the insurer, as reported to the commissioner. (c) Seniors health-pare insurance policies shall have a minimum loss ratio of 65 peroent for individual policies and 75 percent for group policies.. . (d) It shall be an unfair insurance practice to report incurred tosses that are not supported tnj a good-faith belief that losses in the reported amount will be paid within a reasonable time not to exceed five years. 10198.09 (a) As prescribed in this section, the commissioner shall have the authority to assess administrative penalties against insurers, agents, brokers, and others engaged in the business of insurance or any other person or entity for violations of this article. (b) Whenever the commissioner reasonably believes that any insurer, agen~ broker, or other person engaged in the business of insurance or any other person or entity has violated this article, he or she shall make and serve upon the insurer, G88 agent, broker, or other person engaged in the business of insurance or any other person or entity, a notice of hearing. The notice shall state the commissioner's intent to assess administrative penalties, the time and place of the hearing and the conduct, condition, or ground upon which the commissioner is holding such hearing and proposing the assessment of penalties. The hearing shall be held within 30 days after such notice is served. Within 30 days after the conclusion of the hearing, the commissioner shall issue an order specifying the amount of penalties to be paid, if any. Penalties shall be paid into the state insurance fund. (c) Any broker, agent, or other person engaged in the business of insurance, other than an insurer, or any other person or entity, who violates the provisions of this article is liable for administrative penalties of no less than one thousand dollars ($1,008) and no more than twenty-five thousand dollars ($25,000)foreach violation. (d) Any insurer which violates the provisions of this article is liable for administrative penalties of no less than ten thousand dollars ($10,080) and no more than one hundred thousand dollars ($100,000) for each violation. (e) The powers vested in the commissioner by this section shall be in addition to any and all other powers and remedies vested in the commissioner by law. 10198.10 Actions fo. r injunctive relief compensatory damages, punitive dam- ages, restitution, penalties, or any other remedy provided in law or equity may be brought in superior court by the Attorney General, a district attorney, or a ci~ attorney, on behal~ of the people of the State o~ California, or by any person against any person violating, or threatening to violate, this article. The court shall award reasonable attorneys fees for succ~qssful prosecution of such actions. 10198.11 Any person who intentionally violates any provision of this article is guilty of a public offe_nse punishable b~ imprisonment in the county jail not exceeding one !/ear or by imprisonment in the state prison. 10198.12 The requirements and remedies provided by this article are in addition to any other requirements and remedies provided by law, SECTION 17. Regulation of Attorneys' Fees Section 6146.6 of the Business and Professions Code is added, to read as follows: 6146.6 In addition to an!t other obligation imposed upon attorneys by law, attorneys shall adviseprospecttve clients in writing that fe_es are not set by law, but are negotiable without restriction between attorney and client Fees shall not be set by law. The existing right of clients to negotiate fees without restriction and to receive written fee agreements is hereby ratified. When fees are basedon the amount recovered, the contract shall specifically state whether the calculation is based on recovery before or after deduction of costs and expenses. The provisions of this section do not apply to any matter for which attorneys' fees are set by statute existing on January 1, 1988. SECTION 18. Appropriations and Assessments Article 8 is added to Chapter 2 of Division 3 of the Insurance Code to read as follows: Proposition 101: Analysis Continued from page 90 · 50 percent of the rates in effect on October 31, 1988; or · 50 percent of the rates in effect on October 31, 1987, adjusted for inflation by the Physicians' Services component of the California Consumer Price Index (CCPI). The resulting reduced rates: · Cannot be increased during the period November 1988 through November 1989. · Thereafter, these rates can be increased by no more than the annual change in the Physicians' Services component of the CCPI during the period November 1989 through December 1992. This measure applies to private and commercial motor vehicles including automobiles, motorcycles, trucks and buses. It does not apply to "off-road-type" vehicles which are not registered with the Department of Motor Vehi- cles. The measure requires each affected insurance com- pany to file a report with the Department of Insurance by December 1988, showing compliance with the rate reductions. Limits on Claims for Noneeonomic Damages and Attorney Fees 1. Limits on Noneconomic Damages. In general, the measure limits claims for noneconomic losses for bodily injury resulting from the use of a motor vehicle. It limits noneconomic losses (such as pain and suffering) to 95 G88 13700. The moneys appropriated pursuant to this act shall be funded entirely by fees assessed b~ the commissioner as follows: (a) The commissioner shall establish a schedule of fees for filings made pursuant to section 1852.1 that will produce reven~ues sufficient to carny out the provisions of Sections 4, 8, and 9 of this act. (b) For each year commencing with the 1989-90 fiscal year, the commis- sioner shall establish a schedule of fees for filings made pursuant to section 10198.08 that will produce revenues sufficient to carnd out the provisions of Section 16 of this act (c) The commissioner shall establish a schedule of modest fees for use of the consumer information program created by Section 116~29.606. Said fees sba#be deposited in the Insurance Fund. 13701. (a) For fiscal year 1988-89, there is hereby appropriated from the Insurance Fund, for the purpose of carrying out tht~ act, the following amounts, which shall be in addition to amounts otherwise appropriated.. (1) To the Department of Insurance, the sum of eight million dollars ( SS, OO~,OOO. O0). (2) To the Department ~f ]ustive, the sum of two million dollars ($2,000,000.00). (b) It is the will qf the People that, for fiscal !year 1989-90 and each year thereafter, the Legislature appropriate from the insurance Fund an amount sufficient to fund adequately the activities of state government specified in this act. SECTION 19. Amendment (a) Except as provided in subdivision (b) of this section, this act may be amended or repealed only by one of the following two procedures.. (1) This act may be amended to further its purposes by statute passed in each house by roll-call vote entered in the journal, two-thirds of the membership concurring, and signed by the Governor, if at least twelve days prior to passage in each house the bill is in its final form. (2) This act may be amended or repealed by a statute that becomes effective when approved by the electors. (b) Notwithstanding the provisions of subdivisi°~ (a) of this section, Sections 15 and 17 of this act may be amended or repealed! by statute approved by the electors after the effective date of this act or b~t sub~equent statute passed by the Legislature and signed by the ¢overnor as otherwise provided by law. SECTION 20. Severability If any provision of this act, or the application of any such provision to any person or circumstances, shall be held invalid, the remainder of this act, to the extent it can be given effect, or the application of Such provision to persons or circumstances other than those as to which it is hem invalid, shall not be affected thereby, and to this end the provisions of this act ate severable. SECTION 21. Liberal Construction This act shall be liberally construed and applied to promote its underlying purposes. percent of economic losses (such as medical costs and loss of wages, not paid by other sources) .~ These limits do not apply to situations in which the injuries resulted in death or in serious and permanent injury ar disfigurement. 2. Limits on Attorney Fees. The measure limits attor- ney contingency fees to 25 percent ofl the economic losses recovered by the injured person if a ~laim is filed with an insurance company. These limits do~ not apply to situa- tions in which the injuries resulted ih death or in serious and permanent injury or disfigurement. Expiration of Provisions i The provisions of this measure e~pire at the end of December 1992. Fiscal Effect Costs Department of Insurance. This measure would in- crease the Department of InsuranCe's administrative costs by about $2 million during 1988-89. In years follow- ing, these costs could be somewhat lower or higher, depending on workload. These costk, payable from the Insurance Fund, may require additional fees and assess- ments to be levied on the insurance {ndustry, State and Local Governments. While some local gov- ernments purchase insurance, most "self-insure" by rely- ing upon their own resources to pay for losses and claims resulting from motor vehicle accidents. The state also is self-insured against such losses and claims. Because this measure reduces certain types of motor vehicle insurance 135 rates, and limits claims for noneconomic losses, it would result in unknown savings to the affected state and local governments. Courts. Because this measure places limits on court actions for nonecon0mlc damage clmms, it may reduce, to an unknown extent, annual state and local court costs and local court revenues. Revenues Insurance companies pay a tax, based on the amount of gross premiums they receive each year from insurance sold in California. These tax revenues are deposited in the State General Fund~ Proposition 101: Text of Proposed Law Continued from page 91: inconvenience, mental suffering emotional distress~ loss of society loss of companionship, loss of conSortium, injury to reputation, humiliation, or any combination of the above. (5) "Person' means a natural person and not a corporation, partnership, association, or trust. (6) "Use of a motor vehicle" means operating maintaining loading, or unloading a motor vehicle. (b) No claim to recover nOneconomic losses in excess of 25 percent of economic losses, resulting from or caused by an accident art~'ng out of the use of a motor vehicle, shall be included in ~ complaint or other pleading unless the court enters an order allowing an amended pleading to be filed that includes a claim for noneconomic losses in eTx_ cqs&of 25 percent of economic losses. The court may allow the filing of an amended pf~ading claiming noneconomic losses in excess of 25 percent of economic losses o~ a motion by the party seeking the amended pleading if the court finds that the Plaintiff has established that there is a substantial probability that the plaintiff will preoail on the claim that the limitations provided in Section 3,233.6 df the Civil Code do not apply on the basis of the findings of the physician s~lected pursuant to subdivision (c), the findings of other physicians, and any o~her relevant information the court wishes to consider. The court shall not grant a imotion allowing the filing of an amended pleading that includes a claim for noneconomic damages in excess of 25 percent of economic damages if the motion fo~ the order is not filed within two pears after the complaint or initial pleading is filed. (c) Ifa defendant disputes that the plaintiff's injury meets the requirements of Section 3233.6 of the Civil Code, the plaintiff shall be examined by a neutral physician selecied pursuant to this subdivisto~-n. The county medical association for the county in which the action has been filed shall furnish, upon request of either party, the names of three physicians whose specialties qualify them to evaluate the injury, whose l~ractices are located in the county in whichthe action has been filed, and who have agreed to provide examinations for the purposes of this section. If the county medical association is unable to furnish the names of three physicians, the Board of Medical Quality Assurance shall £urnish the names. If there are not three physicibns whose practices are located in the county in which the action has been filed, Whose specialties qualif~t them to evaluate the injury, and who have agreed to provide examinations for the purposes of this section, the county medical association or the Board of Medical Ouality Assurance, as applicable, shall furnish the names of three qualified physicians whose practices are located in a nearby county and whose practices are closest to the count~ in which the action has been filed, The Idaintiff and d. efen_dant shall each eliminate one name. The remaining physician shall examine the plaintiff and furnish copies of his or her written findings to the plaintiff, defendant, and the court. Both parties shall share equally in the costs of the examination. The examination provided pursuant to this :subdivision shall be in addition to other discovery provided for by law. If the plaintiff refases to submit to the examination, the court shall deny plaintiff's motion for an order allowing an amended pleading to be filed that includes a claim for noneconomic losses in excess of 25 percent of economic losses. (d) This section does not apply to either survival actions provided for in Section 573 of the Probate Code or wrongful death actions. (e) This section only atWlies to causes of action arising from accidents that occur on or after Novembe~ 9, 1988, and on or before December 31, 1992. SEC. 6. Section 1852.5 is added to the Insurance Code, to read: 18525. (a} For the 15~rposes af this eection: (1) "Bodily injury" means injury to a person which arises out of the use of a motor vehicle as a motor v~hicle and sickness, disease, or death that results from the injury. Bodily injury does, not mean injury occurring during the use of a motor vehicle but not arising out of that use. (2) "Motor vehicle" means any vehicle designed primarily fo.r use on streets and highways and subjedt to motor vehicle registration under the laws of California. ' (3) "Person" means a natural person and not a corporation, partnership, association, or trust. (4) "Use of a motor Oehicle" means operating maintaining loading or unloading a motor vehicle.] (b) For any coverage of liability for bodily injury arising out of the use of a 136 This measure requires that the rates for the bodily injury liability and uninsured motorist components of motor vehicle insurance policies be reduced. These two components account for about 40 percent of total motor vehicle insurance premiums. The required rate reduc- tions--by themselves--would reduce state insurance tax revenues by about $50 million a year. This estimate assumes that no offsetting adjustments are made in other insurance rates--not restricted by this measure~to com- pensate for these reductions. Whether such adjustments would occur is unknown. The rate reductions required by this measure will expire after four years, at the end of 1992. motor vehicle provided by policies issued or renewed in this state with an effective date on or after November 9, 1988, the maximum premium rate charged by each motor vehicle liability insurer admitted in this state shall be the lower of the following: (1) The insurer's premium rate in effect on October 31, 1988, reduced blt 50 percent. (2) The insurer's premium rate in effect on October 31, 1987, increased in an amount not to exceed the amount of the Physicians' Services component of the Consumer Price Index applicable to California for the period of time from October 1, 1987, to November 1, 1988, reduced by 50 percent. The maximum premium rate shall also apply to premium rates for any uninsured motorist coverage of bodily injury. (c) No insurer required to reduce premium rates pursuant to subdivision (b) may increase premium rates for coverage for bodily injury arising out of the use of any motor vehicle for any policy issued or renewed with an effective date before November 9, 1989. For any polic~ issued or renewed with an effective date from November 9, 1989, to Devember 31, 1992, the premium rates for coverage for bodily injury arising out of the use of any motor vehicle shall not be increased at an annual rate in excess of the Physicians'Services component of the Consumer Price Index applicable to California for the 12-month period preceding the increase. (d) Each insurer required to reduce premium rates pursuant to subdivision (b) shall file a report evidencing compliance with its provisions with the commis- sioner by December 9, 1988. The report shall set forth the insurer's premium rates in effect on October 31, 1987, and October $1, 1988, for coverage of liability for bodilp injurp, and the reduced premium rates in effect_ on and after November 9, 1988. From November 9, 1989, to December $1, 1992, each insurer shall file a report within $0 days of any change in premium rates for coverage of liability for bodily injury arising out of the use of any motor vehicle with the commissioner. The report shall set forta the insurer's premium rates in effect prior to the change in premium rates, for coverage of liability for bodily injury, and the insurer's new premium rates. (e) (1) Each motor vehicle liability insurer admitted in this state, including an insurer admitted after November 8, 1988, that did not have premium rates in ~ff. ect for new business on October 31, 1988, for any coverage of liability for bodily injury arising out of the use of a motor vehicle because it did not offer that coverage on or beforb that date shall not increase premium rates initiall~ 3mposed in excess. ~fo the .am°unts specified, in subdivision (c), shalll fileile a report of any change m premmm rates as reqmred by subdivision (d), and, if applicable, shall be subject to paragraph (2). (2) If a motor vehicle liability insurer described in paragraph (1) is a subsidiary of is controlled by, is a surviving corporation of or is subject to common con)rol along with an insurer re~tuired to reduce premium rates pursuant to subdivision (b), it may not have premium rates in excess of those permitted for the insurer required to reduce premium rates pursuant to subdivision (b). For the purposes of this paragraph, "control" has the meaning set fo, rth in subdivision (a) of Section 160 of the Corporations Code, "subsidiary' has the meaning set forth in Section 189 o/' the Corporations Code, and "surviving corporation" has the meaning set fort' h in Section 190 of the Corporations Code. (3) Ifa motor vehicle liability insurer described in paragraph (1) is not subject to paragraph (2), then prior to the offer of any coverage of liability for bodily injury arising out of the use of a motor vehicle, it shall file its premium rates with the commissioner and obtain the commissioner's approval of those rates. Para- graph (1) shall apply to any subsequent increase in premium rates. (f) This section applies to policies issued pursuant to Article 4 (commencing with Section 11620) of Chapter 1 of Part 3 of Division 2. (g] The commissioner shall enforce the provisions of this section in accordance with Article 7 (commencing with Section 1858) including, but not limited to, by means of appropriate suspensions and revocations of certificates of authority and penalties. (h) Except as provided in this section, the rating and classification of motor vehicle insurance shall be regulated in accordance with the provisions of Section 1852 in effect on January 1, 1988. (i) Except as expressly provided, this section shall not affect the Insurance Code or any regulations issued pursuant to the Insurance Co?lc. SEC. 7. Section 3S33.6 of the Civil Code, added by Section 4 of this measure and Section 1852.5 of the Insurance Code, added by Section 6 of this measure, are dependent on each other and are not severable. SEC. 8. (a) Except as provided in subdivision (b), the provisions of this measure shall not be amended by the Legislature by any bill which becomes operative on or before December 31, 1992, unless the bill (1) furthers the purposes of this act and is passed in each house by rollcall vote entered in the journal, two-thirds of the membership concurring or (2) becomes effective only when approved by the electors. Proposition 102: Analysis Continued from page 94 tion and persons to whom the infection may have been transmitted, current law does not require health officers to do so. Health officers may alert persons who potentially have been exposed to the virus if the infected person provides written consent to the health officer to do so. If the health officer contacts a person who may have been exposed to the virus, the health officer must keep confi- dential the identity of the infected person. Exposing Others to HIV. Current law does not im- pose specific criminal penalties on persons who know- ingly expose others to HIV. Current law makes no provision for testing of persons charges with crimes to determine whether they are infected with the HIV. Proposal This measure makes various changes to existing laws that affect reporting, investigation, confidentiality, and penalties related to HIV infection. The measure also changes references in existing law from testing for HIV antibodies to testing for evidence of infection. The mea- sure contains the following specific provisions: Reporting and Investigation of HIV-Infected Per- sons. The measure requires health care providers to report the names of HIV-infected persons to local health officers and requires HIV-infected persons to report their own names and the names of their contacts to local health officers. It also directs local health officers (1) to imme- diately investigate cases of AIDS and HIV infection and (2) to take all measures "reasonably necessary" to pre- vent transmission of infection. The measure requires the State Department of Health Services to adopt regulations specifying procedures for case investigation and "rea- sonably necessary" methods for preventing transmission of HIV infection. Elimination of Restrictions on Using HIV Antibody Test Results. The measure removes current restrictions on using HIV antibody test results for determining insur- ability or employability of individuals. It also allows use of HIV test results in criminal or civil actions against infected persons and provides that physicians and nurses cannot be held liable for damages resulting from their disclosure of test results to certain persons. Testing Persons Charged with Crimes. The measure allows involuntary HIV testing of persons charged with prostitution, certain sex crimes, or assault by means likely to produce great bodily injury. The State Department of Justice would be required to keep the test results on file and provide them to the courts, legal personnel, and law enforcement agencies upon request. Criminal Penalties for Persons Who Knowingly Expose Others to the HIIV. Anyone who donates blood or engages in prostitution, knowing that he or she is infected with HIV, would be guilty of a felony, punishable by imprisonment in state prison for five, seven, or nine years. In addition, anyone who commits certain crimes (in- cluding rape, sexual battery, and assault by means likely to produce great bodily injury), knowing that he or she is infected with HIV, would be sentenced to three addi- G88 (b) For any bill with an operative date on or after January 1, 1993, or that amends or repeals Section 6147 of the Business and t?rofessions Code, as amended by Section 3 of this measure, the Legislature may amend or repeal the provisions of this measure by whatever vote is otherwise applicable to the bill and the bill need not be approved by the electors. tional years in prison for each violation, in addition to the prison term imposed for the sex crime or assault. Consent and Confidentiality Related to HIV Testing. The measure (1) eliminates the express requirement that consent for an HIV test be in writing and (2) prohibits physicians from being held criminally or civilly liable for disclosing test results without consent to (a) persons who may have been infected by the test subject, such as sexual partners, and (b) other medical personnel involved in treating the test subject. The measuie also reduces fines and penalties for violation of provisions requiring that test results be kept confidential. Protective Clothing. The measure prohibits any em- ployer from inhibiting or interfering :with an employee's decision to wear any type of protective clothing, such as gloves or a mask, the employee believes necessary to protect against HIV infection, unless the clothing inter- feres with the employee's ability to perform his or her job. Biological Hazard Labels. The:measure requires health facilities and clinics to place biological hazard labels on all items soiled by, or containing body fluids of, persons who are HIV-infected. Compliance with the Measure.-iFailure to comply with specified provisions of the measure or State Depart- ment of Health Services regulations ilnplementing these provisions would be a misdemeanori punishable by im- prisonment in a county jail or a fine or both. Fiscal Effect The measure has three potentially major, and a variety of minor or unknown, fiscal effects: 1. Reporting and Investigation of Cases. The fiscal impact of this provision could vary greatly depending on the number of persons who test positive for HIV infec- tion, the number of cases investigated, the costs of investigating cases, and the types of measures determined to be reasonably necessary to prevent transmission of infection. The costs are potentially in ithe tens of millions of dollars annually. Costs could significantly exceed this amount ff additional measures beyond tracing of contacts, such as widespread testing, are determined to be "rea- sonably necessary" to prevent the spread of the disease. 2. Elimination of Restrictions on Using Test Re- suits. The costs of this provision to government health care programs ultimately could be in t'_~e tens to hundreds of millions of dollars annually if insurance companies institute HIV testing programs to eliminate or reduce their costs related to AIDS. This is because the annual costs of AIDS care in California willl grow substantially over time. Currently, a majority of this care is funded by insurance companies. Allowing insurance companies to deny coverage based on HIV tests could shift a significant portion of these costs to public programs. Potential costs resulting from employer testing pro- grams are unknown. If a substantial inumber of people lose their jobs as a result of HIV testing, there could be substantial unemployment eompensatlon and other costs. 3. Testing of Criminal Offenders. The fiscal impact of this provision is unknown, but eould vary greatly, de- pending on how it is implemented. If all persons charged 137 with prostitution, sex crimes, or assault by means likely to produce great bodily injury are ordered to submit to blood testing under the measure, the costs to local governments could range up to several hundred thousand dollars annually. HoWever, because the measure does not require HIV testing of all offenders but merely permits it, the costs of this provision could be considerably less. Minor or Unknown Fiscal Effects. The following pro- visions would have minor or unknown fiscal effect: · Imposing additional penalties for persons who know- ingly expose others to HIV through sex crimes, certain assaults, ,or donation of blood. · Changing existing restrictions on disclosure and re- Proposition 102: T6xt of Proposed Law Continued from page 95I detect ~nfihcdlcs to t-he evidence of infection by any probable causative agent of AIDS on a cadaver when an autopsy is performed or body parts are donated pursuant to the Uniform Anatomical Gift Act, provided for pursuant to Chapter 3.5 (commencing with Section ~150) of Part 1 of Division 7. ~- (e) The requirements of subdivision fa) do not apply when blood is tested as part of a scientific investigation conducted either by medical researchers operating under institutional !review board approval or by the state department in accordance with a protocol: for unlinked testing. For purposes of this section, .._u_~.~ ,~__ the term "unlinked testing" means that blood samples are obtained anonymously or that the individual's name and other identifying information is removed in a manner that precludes the test results from ever being linked to a particular individual in the study. An individual or entity conducting unlinked testing as defined in this subdivision shall be exempt from the reporting requirements of Section 199.24. Alternative test sites provided for pursuant to Article 8 (commencing with Section 1630) of Chapter 4 of Division 2 shall not be eligible to conduct unlinked testing, as defined in this subdivision. SEC. 7. Section 199.23 of the Health and Safety Code is amended to read: 199.23. Neither t4~e state department ee~ The State Department of Health Services, any alternative test site provided for pursuant to Article 8 (commencing with Section 1630) of Chapter 4 of Division 2, any blood bank or plasma center, including a blood bank or plasma center owned or operated by a public entity, or any physician and surgeon, shall not be held liable for any damages resulting from the notification of test resultS, as set forth in this chapter, or pursuant to paragraph (3) of subdivision fa) eS,, ~ i~ or subdivision (c) of; Section 1603.3; ~s amcndc~ bT ~ t~8 of ~e ~ RCg".'.lar gcaslcn. SEC. 8. Section 199.24 is added to the Health and Safety Code, to read: 199.24. Notwithstanding Section 199.21 or any other provision of law, any physician and surgeon, blood bank, plasma center, entity, or county that operates an alternative test site established pursuant to Article 8 (commencing with Section 1630) of Chapter 4 of Division 2, or alternative test site, who knows, or has reasonable cause to b~lieve, that a patient or donor has been infected by, or has tested positive in, any test indicating infection bit any probable causative agent of AIDS, shall within 48 hours promptly report this fact to the local health officer in the county where the patient or donor resides. This information, together with the name of the person, ff known, and the nature of associated supervening disease, if presen~ shall be !transmitted to the local health officer in accordance with the regulations adoptad pursuant to subdivi~'on (b) of Section 199.28 The requirements of this sectio, do not apply .to unlinked testing, as defined in subdivision (e) of Section 159.22. SEC. 9. Section 199.25 of the Health and Safety Code is repealed. I~.~. Nohvitl~tanding $et~4~ ~ ~ ~.~ ~ ~ of b~, ~ l;hyslcbn al~ ~,,,,,he him order?.. ,, to~ to detee~ ~ to the 1~ of t. he te~ shall be heht ~ e~ eh4tb, ..~.~':~-'- ~ dbclc.~ug to t, pcr;cn bcllcvcd to be t-he spease ~ e pat:Chi t~ t-he paticnt ht~ tested ~ e~ a ~ to dctcct a.u~?x~.ics to t4~e prc~ah!c caus&"?.'c agcnt of acquL-cd i.--muunc dc~c~cnc;,' ;Sr. drcr...c. reqmremcnts ~ ...... authorrzation fi~ t4~e ......... ~ ~ ..... t~ ~ ...... SEC. 10. Section 199.25 is added to the Health and Safety Code, to read: 199.£~. fa) Notun'thstanding Sect~'on 199.21or any other provision of law, no physician and surgeon who has knowledge of the results of any test indicative of infeF, tion by any probablelcansative agent of AIDS shall be held criminally or civilly liable for disclosing the results of the tests, if confirmed to be positive, without the authorization qf the subject of the test to any of the following: (1) The subject of the test. (2) Any person authorii~d to consent to the test pursuant to subdivision (b) of Section 199.22. (3) A ~erson believed tO be the s~ouse of t.he subject, of the test (4) Any person with whOm the subject of tae test is Oetieve to ham had sexual eontae~ or anlt other eontaVt believed to pose a threat of infection to that person. 138 porting of HIV test results. · Requiring clinics and health facilities to label items soiled by HIV-infected persons. Summary of Fiscal Effect. In summary, the fiscal impact of this measure is unknown. It could be as high as tens or hundreds of millions of dollars, depending on (1) the types of measures determined to be "reasonably necessary" to prevent further spread of the disease, (2) the costs for investigating HIV cases, (3) the extent of actions by insurance companies and employers to exclude persons who are HIV-infected, and (4) the number of criminal offenders who would be required to submit to a blood test. (5) Other medical personnel involved in the treatment of the subject of the test. (b) Notwithstanding Section 199.21 or any other provision of law, no registered nurse who has knowledge of the results of any test indicative of infection by any probable causative agent of AIDS shall be held criminally or civilly liable for disclosing the results of the tests, if confirmed to be positive, without the authorization of the subject of the test to other medical personnel involved in the treatment of the subject of the test. (c) This section is permissive on the part of the attending physician and surgeon, and all requirements and other authorization for the disclosure of test results indicative of infection by any probable causative agent o. f A1DS are limited to the provisions contained in this chapter, Chapter 1.12 (commencing with Section 199.30), and Sections 1603.1 and 1603.3. (d) Nothing contained in this section shah be construed to impose any duty upon any physician and surgeon or registered nurse to notify anyone of the fact that a patient has tested positive for any rest indicative of infection by any probable causative agent of AIDS, except to any of the following: (1) The subject of the test. (2) A person authorized to consent to the test pursuant to subdivision (b) of Section 199.22. (3) The local health officer pursuant to Section 199.24. SEC. 11. Section 199.26 is added to the Health and Safety Code, to read: 199.26. (ad Each local health officer is hereby directed to use every available means to ascertain the existence of, and immediately to investigate, all reported cases of persons who have been diagnosed with AIDS or who test positive for any test indicating infection by any probable causative agent of AIDS within his or her jurisdiction, to ascertain the sources and possible transmittal of these infections, and to take all measures reasonably necessary to prevent the transmis- sion of infection. These measures shall include, but not be limited to, notification of these findings to the test subject's spouse, to other known sexual partnem of the test subject, and to any other person the public health officer has reasonable cause to believe has been exposed to any probable causative agent of AIDS under conditionsposing a substantial risk of infqction to that person. (b) Nothing contained in this section shall be construed to require the use of quarantine or isolation for the management of AIDS. The use of authority vested in Califo_rnia's local health offi_cers to quarantine or isolate shall not be affected by the changes in the law made by the Paul Gann Public Health Act. SEC. 12. Section 199.9,7 of the Health and Safety Code, as added by Chapter 663 of the Statutes of 1987, is repealed. ........ t-he :.dcnt~ty of ~ sc×ua! human immunodefieicncy ;'ku; ~ ~ ~ e* ~ v ...... ~ ........ he e~ s!~ h~ ....... t-he ~e ef hypodcrm~c ..... s, to t-he ...... ~ .................... t-he pe,~e~ h~ si~ a ee~,~ ....... ~ bT t-he pelme~ ~ e~ dcsigncc ,aide h~s admini~tcrod the ;v..i:. acknowlodgcs ~ tOae ~crscr. i~ ~ ~ ~ v~luntarily. pky;iciau to adr...inlstcr t-he tesk, the sig-P, eet ccnscnt fe~m ~ be fcrwardcd bT the .c.r...s sig-~e4 ~ to m_~::':s:c.n K-a-)- to t-he coumy ..ca..h ~- SI:he ccun.b' hcalth o~ccr m*~ alcrt t-he scxual partners o~ the partner: of t-~ -~' ....t-he :-~:-':~"~' r..aklr4 t-he a:~ ......~ shall _^r^_ ~ p whc.'n a ~:c!csurc i~ made pursuant to ~ ;uhdi;%ic.n to alternative whcra they ma~ wish to chtc2n tcs~ng. ~ ~ ccun~ health cfficcr sha~ beep eonfidcmtial t-he ..... ........... ~ ......of t-he ;..~:.'-a"':a.~u.. ~' making t-he contact dkclc, surc ~ t4~e idcntiltlcs of t-he pcr:c, ns eo~tete~. i~ a~ sta~c, county, e~, o~ mca. ci:5., crlm:'na., administrativc, ~ proceedings to ~ o~ v .............. :... charaetcmhcs .............. ~d SEC. 13. Section 199.17 of the Health and Safety Code, as added by Chapter 1427 of the Statutes of 1987, is repealed. !~.27. ~r +1-)- Whcn the suhjcct of e h?md .t~ to dctcct an.fihc~c: to t-he l~-ebabte zc. usati:'c agcnt e~ AIDS is ~ ~ t.e ~ eeme~ f~ t-he t~ to he performed .................. f~ ~ ~ ~ be .............. the sabjeet~ pafeat~, ~ eon~c,~vato., ~ ...... v .............. · ........... to G88 +$)- Nohvithstandingv-- ....... ~,,,~,..~' +1%, ..a,~_,,..~.. ~ subject ~ t-he ~ W~Ifarc ~ Institutions Cz~c. ~ Wrlttcn ccr~cnt ~'~ ~ ~ cbt":~cd ~ ~ ~ubjcct prc~tafi~ =c=urcs. ;?all ~ pcrmlttcd ~ ~ ~ ~ ~ f~cwlng: ~ Nohvithst~ding ~cc~cns I~.~ ~ !~.21, rccclvc ~ rc-~lts ~ bch~f ~ ~ su~cct ':dth~u~ ~ author~fion. ~ Disclcsc ~ ~ rcsults ~ ~ ~ ~ o.~. m a~rd~ .............. i~.~ ~ I~.21. ~ Pra;Sdc ;;flitch authorization ~ ~ dlaclaaurc ~ ~ rcs"~ts ~ ~ subjcct ~ a~rdan~ ;;St~ ~ccScn; I~.~ ~ I~.21. SEC. 14. Section 1~.27 is added to the HeMth ~d S~eW Code, to read: 199.2Z E~ person who is info,ed that he or she h~ tested ~ti~ for any test indicating infection b~ an~ pro~ble causative agent of AIDS shal~ ~thin se~n da~s, repo~ to the l~al health affixal the same and address of an~ ~rson om whom the disease ma~ ha~ been contracted and to whom the disease ma~ ave been transmi~ed. SEC. 15. Section 1~.~ is added to the HeMth ~d S~eW Code, to read: 1~.28. (a) Except as provided in ~Mivisions (c) and (d/, all info~aabn received by state and local health de~ments pur~ant to Sec~on 1~.24 and Section l~.27 shall ~ confidena~ and the State De~ment of Health Se~s and an~ l~al health officer receiving a subp~na for these re~rds shall ass~ a pHvilege pur~ant to Sec~on 1~0 of the Evidence C~e. (b) Not later than 1~ days after the effecti~ &te of this sec~ the Director of Health Se~ives shall adopt regulations: (1) Goveming the transmisgon and maintenance of confid~a~l info~ation transmi~ed put, ant to Section 1~.24. (2) Establishing procedures for the use of info~ation re~ed put, ant to Section 1~.24 by the State Depa~ment of Health Sewices and local health officers to control the spread of AIDS. (3) Establish guidelines that are reasonabl~ n~essaw to prat the transm~- sion of AIDS. (c) An~ information obtained ~ a ~h~g~an and ~rgeon ~fore, du~ng, afteg or as a result of an examination of a ~ent who has tested ~tive for test indicating infection for ang pro~ble ~usative agent of AIDS and an~ information transmitted pursuant to Section 1~.24, shall ~ admissible in any of the following.. (1) A ~minal action against a ~tient charged ~th a viola~on ?f any provision of this chapteg Section 1621, or Section ~Tf or ~ of the P~al CMe. (2) A ~vil action against the patient for the transmittal, or threat~ed transmitta~ of any probable causati~ agent of AIDS to an uninf~ted ~rson or p~rsons. The pHvileges provided b~ Section 9M of the Evid~ee Code and S~on 1~.20 are not applicable in an~ prose~tion orp~eeding de, bed in this su~ivi~on. (d) Any ph~si~an and ~rgeon, health offiqeg or ~ouse, shall ~ competent and ma~ & required to tesafy in an~ of the following: (1) A c~minal action against the ~tient charged ~th a violation pf any provision of this chapteg Sec~on 1621, or Section ~Tf or 2~ of the Penal CMe. (2) A ~vil action against the ~tient for the tran~i~al of anq probable causative agent of AIDS to an uninfected ~rson or persons. The p~vileges provided b~ SecSons 97~ 971, ~ ~, and 1014 of the Evid?ce C~e and Section 1~.20 are net applicable in any prose~ons or precedings described in this subdivi~on. (e) Regular'ann adopted pursuant to this section shall requi~ a finding b~ the director that an~ public use of info,arian re~ed pursuant to Section 1~.24 or Section 1~.27 is essen~al to control the spread of AIDS. (f) Nothing in this section shall prohibit a judge in a ~vil action from isling protective orders fashioned to protect the p~va~ of any ~ or an~ ~tn~s. SEC. 16. Section 1~.~ is added to the HeMth ~d S~e~ Code, to read: 1~.2~. A n employer shall not inhibit or inteffere with an emplo~ee ~ de~sion to wear an~ protecti~ clothing, gow~, glo~s, or other prot~ve g~r that t~ employee deems ne~ssa~ for protec~on against contamination by an~ probable causative agent of AIDS unless the proteca've gear poses a direct ha~rd to athos in the ~rkplace or prevents the employee f~om ~o~ing the no~al du~ of his or her job. Nothing in this section shall ~ deemed to impose a duty, requiremen~ or obligation on the employer or an~ other ~rson other than the employee to ~ fog fumish, or reimburse the emplcyee for the protective gear. SEC. 17. ~ction 1~.~ is added to the HeMth ~d SafeW Code, to read: 1~.2~. &J An~ ~rson who refuses to give any info~ation, to make any report to comply with any proper control procedure or examiaa~on, or to pe~o~ any other duty or act required b~ this chapteg or who violates this chapter or any ~le or regulation ff the State Depa~ment of Health Sewi~s issued pursuant to this chapter is guilt~ of a misdemeanor. (b/ Any physi~an and ~rgeon who fails to comply with the ~po~ing requirements of this chapter shall be liable for an additional ~vil ~naltg of t~ hundred fift~ dollars (S2~) for each violation. SEC. 18. Section 12~.5 is added to the Health ~d SafeW Code, to read: 12~.5, To the extent ~itted byfed~al law, a clinic shall place a biological hazard label on all items known to the clinic to be soil~ by, or containing, fluids of patients of the clinic infected by any Probable causative agent of acquired immune deficiency s~ndrome (AIDS). ' SEC. 19. Section 1287 is added to the Health and Safety Code, to read: 1287. To the extent permitted by federal law, ai health facili~ shall place a biological hazard label on all items known to the health facility to be soiled by, or containing, body fluids of patients of the healtt~facility that are infected b~ any probable eansattve agent of acquired immune deficiency syndrome (AIDS). SEC. 20. Section 1621 is added to the Health and Safety Code, to read: 1621. It is a felony punishable by imprisonment in the state prison for five, seven, or nine years, for any person to donate blood, whether the person is a paid or a volunteer donor, if the person knows that he or she has been infected by any probable causative agent of acquired immune defic~, cy syndrome (AIDS), or if the person knows that he or she has tested pesitive, as defined in Section 199.19, for any test indicative of i_nfection by any probable causative agent of acquired immune deficiency s~ndrome (AIDS). For purposes of this section, the term "blood" mea~ "human whole blood" and "human whole blood derivatives," as defined for purposes of this chapter and includes "blood components, "as defined in subdivision (0 of Section 1603.1. SEC. 21. Section 268 is added to the Penal Coda, to read: 268. (a) Any person who commits one or more of the offenses listed in subdivision (b) with knowledge that he or she i~ infected by any probable causative agent of acquired immune deficiency syndrOme (A_IDS) or that he or she has tested positive, as defined in Section 199.19 of the Health and ~fet~ Code, for any probable causative agent of acquired immune _deficiency syndrome (AIDS) at the time of the commission of those offenses, shall receive a three-year enhance- meat for each violation in addition to ?he sentence pr°vided under those sections. (b) Subdivision (a) shall apply to all of the following offenses: (1) Rape in violation of Section 261. (2) Unlawful intercourse with a female under age 18 in violation of Section 261.5. (3) Rape of a spouse in violation of Section 262. (4) Unlawful sodomy in violation of Section 288 (5) Unla~wful oral copulation in violation of Section 288a. (6) Lewd and lascivious conduct with a child under the age afl4 in violation of Section 288. (7) Rape by foreign object in violation of Section: 289. (8) Sexual battery in violation of Section 243.4. (9) Assault by means likely to produce great bodily injury in violation of Section 245. SEC. 22. Section 647f is added to the Penal Code, to read: 647f. Any person who violates subdivision (b) of Section 647 with knowledge that he or she is infected by any probable causative agent of acquired immune deficienc~ syndrome (AIDS) or that he or she has tested positive, as defined in Section 199.19 of the Health and Safety Code, for anY~probable causative agent _of acquired immune _deficiency syndrome (AIDS) is guilty o fa felony punishable by imprisonment in the state prison for five, seven, or nine years. SEC. 23. Section 1202.1 is added to the Penal Code, to read: 1202.1. (a) Notwithstanding any other provision of law, in any case wherein a person is charged with a violation of an offqnse listeit in subdivision (d), blood samples may be taken from the person so charged and may be submitted and tested for the presence of evidence of any probable causative agent of acquired immune deficiency syndrome (AIDS). The results of these tests shal~ notwith- standing any other provision of law, be subject to communication and disclosure in the same manner as the results of any other bodily fluid test. Each person tested under this section shall be informed of the results df the blood test. (b) Notwithstanding Section 199.21 of the Health and Safety Code, the results of the blood test or tests to detect infection by any probable causative agent of acquired immune deficiency syndrome (AIDS) shall be transmitted by the cleik of the court to the Department of Jastice, which shall!include the results of those persons tested under this section in the state summary criminal history informa- tion. (c) Notwithstanding Section 199.21 of the Health and _SafeW Code, the court, the defense attorney, the prosecuting attorney, and.the ldcal law enforcement agency involved in a criminal investigation or prosecution under Section 647 or 647f shall, upon request, be provided by the Department of Justice with the results of any test or tests as to the person under investigation or being prosecuted under those sections if the results are on file with the department. (d) For purposes of this section, sexual offenses include any of the following: (1) Rape in violation of Section 26l. (2) Unlawful intercourse with a female under age 18 in violation of Section 261.5. (3) Bape of a spouse in violation of Section 262. (4) Unlawful sodomy in violation of Section 286. (5) Unlawful oral copulation in violation of Section 288a. (6) Soliciting, agreeing to engage in, or engaging in, any act of prostitution in violation of subdivision (b) of Section 647. (7) Ledd and lascivious conduct with a child under the age afl4 in violation of Section 288. · (8) Bape by foreign objec, t in violation of Section i789. (9) Sexual battery in violation of Section 243.4. (10) Assault by means likely to produce great bodily injury in violation of Section 245. SEC. '24. In the event that any section, subdivision, or pom'on thereof of this act is deemed unconstitutional by a proper court of law, then ?hat section, subdivision, or portion thereof shall be stricken from the act and all other sections, subdivisions, and portions thereof shall remain in force, alterable only by the people, according to process. G88 139 Proposition 103: Analysis Continued frora page 98 In general, this measure defines a good driver as a person who, during ~he last three years, has (a) held a driver's license and (b) had no more than one conviction for a moving violation. 2. Determining Fhetors for Rates. In general, the measure requires that rates and premiums for automobile insurance be determined on the basis of the insured person's driving recold, miles driven and number of years of driving experience. Other Insuranee-Rglated Provisions 1. Antitrust Laws.l The measure makes insurance companies subject to the state's antitrust laws. 2, Election of Insurance Commissioner. The measure requires that the Insurance Commissioner be elected, the first election taking place in 1990. 3. Consumer Assistance. The measure requires the establishment of a nonprofit corporation to represent the interests of insurance consumers. Additionally, the mea- sure requires the Insurance Commissioner to provide consumers--upon request and for a reasonable fee--with a comparison of the rates for each personal (that is, noncommercial) type of insurance offered in California. In general, this would include rates for private automo- bile, homeowner's and renter's insurance. 4. Discounts or Rebates. The measure permits insur- ance agents and b~okers to give certain discounts or rebates to those who buy insurance from them. It does so by eliminating the prohibition in current law against such discounts or rebates.~ Fiscal Effect Costs Department of Insurance. This measure would in- crease the Department of Insurance's administrative costs by between $10 million to $15 million during 1988-89. These costsi would be financed out of the Insur- ance Fund which is Supported by fees and assessments on Proposition 103: Text of Proposed Law Continued from page 99! amend or reject a decision only under Section 11517 (c) and (e) and solely on the basis of the record; (d) Section 11513.5 shall apply to the commissioner; (e) discovery shall be liberally construed and disputes determined by the adminis- trative law judge. 1861.09. Judicial review ishall be in accordance with Section 1858.6. For purposes of judicial review, a decision to hold a hearing is not a final order or decision,, however, a decisior~ not to hoMa hearing is final. Consumer Participation 1861.10. (a) Any person.may initiate or intervene in any proceeding permit- ted or established pursuant to this chapter, challenge any action of the commis- sioner under this article, and enforce any provision of this article. (b) The commissioner ora court shall award reasonable advocacy and witness fqes and expenses to any person who demonstrates that (1) the person represents the interests of consumers, and, (2) that he or she has made a substantial contribution to the adoption of any order, regulation or decision by the commis- sioner or a court. Where such advocacy occurs in response to a rate application, the award shall be paid by the applicant. (c) (1) The commissioner shall require every insurer to enclose notices in every policy or renewal premiu~n bill informing policyholders of the opportu- nity to join an independant, non-profit corporation which shall advocate the interests of insurance consumers in any forum. This organization shall be establishedby an interim board of public members designated by the commis- sioner and operated by individuals who are democratically elected from its membership. The corporation shall proportionately reimburse insurers for any additional costs incurred b~ insertion of the enclosure, except no postage shall be charged for any enclosure weighing les~ than 3~ of an ounce. (2) The commissioner shallby regulation determine the content of the enclosures and otherprocedures necessary for implementat~on of this provision. The legislature shall make no 140 the insurance industry. Given the current balance in this fund, fees and assessments would have to be increased to cover these costs. In years following, these costs could be somewhat lower or higher, depending on workload. State and Local Governments. While some local gov- ernments purchase insurance, most "self-insure" by rely- ing upon their own resources to pay losses and claims. The state is generally self-insured, but does purchase some liability and fire insurance. Because this measure reduces the rates for certain types of insurance, including motor vehicle, fire and liability, it would result in un- known savings to the state and those local governments that purchase such insurance. Revenues Insurance companies pay a tax based on the amount of gross premiums they receive each year from insurance sold in California. These tax revenues are deposited in the State General Fund. Starting in November 1988, this measure requires that rates for motor vehicle, fire and liability insurance be reduced. These lines of insurance account for about 45 percent of all California insurance premiums. A good driver discount takes effect a year later. The Department of Insurance's new role in reviewing and approving proposed rate changes also takes effect in November 1989. The rate reductions and the good driver discounts combined normally would reduce state insurance tax revenues by about $125 million a year. This estimate assumes that about 50 percent of the drivers would qualify for the discount. It also assumes that no offsetting adjustments would be made in other insurance rates. The resulting state revenue loss, however, will not occur because this measure provides that for the period Novem- ber 1988 to January 1991 the State Board of Equalization shall adjust the state tax rate on gross premiums to offset these premium reductions. Thereafter, there would be an unknown General Fund revenue loss to the extent these rate reductions and discounts continue. appropriation for this subdivision. Emergency Authority 1861.11. In the event that the commissioner finds that (a) insurers have substantiall~t withdrawn from an~l insurance market covered by this article, including insurance described by Section 660, and (b) a market assistance plan would not be sufficient to make insurance available, the commissioner shall establish a joint underwriting authority in the manner set forth by Section 11891, without the prior creation of a market assistance plan. Group Insurance Plans 1861.12. Any insurer may issue any insurance coverage on a group plan, without restriction as to the purpose of the group, ocoupation or t~lpe of group. Gwup insurance rates shall not be considered to be unfairly discriminatory, if they are averaged broadly among persons insured under the group plan. Application 186L13. This article shall app]y 1o all insurance on risks or on operations in this state, except those listed in Section 1851. Enforcement O Penalties 1861.14. Violations of this article shall be subject to the penalties set forth in Section 1859.1. In addition to the other penalties provided in this chapter, the commissioner may suspend or revoke, in whole or in part, the certificate of authority of any insurer which fails to comply with the provisions of this article. SECTION 4. Elected Commissioner Section 12900 is added to the Insurance Code to read: 12900. (a) The commissioner shall be elected by the People in the same time, place and manner and for the same term as the Governor. SECTION 5. Insurance Company Filing Fees Section 12979 is added to the Insurance Code to read: 12979. Notwithstanding the provisions of Section 12978, the commissioner shall establish a schedule of fi'ling fees to be paid by insurers to cover any G88 administrative or operational costs arising from the provisions of Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1. SECTION 6. Transitional Adjustment of Cross Premiums Tax Section 12202.1 is added to the Revenue & Taxation Code to read: 12202.1. Notwithstanding the rate specified bF Section 12202, the gross premi- ums tax rate paid bF insurers for anF premiums collected between November 8, 1~8 and JanuarF 1, 1991 shall be adjusted bF the Board of Equalization in January of each ~lear so that the gross premium tax revenues collected for each prior calendar Fear shall be sufficient to compensate for changes in such revenues, if anF, including changes in anticipated revenues, arising from this act. In calculating the necessanj adjustmen~ the Board of Equalization shall consider the growth in premiums in the most recent three Fear period, and the impact of general economic factors including, but not limited to, the inflation and interest rates. SECTION 7. Repeal of Existing Law Sections 1645, 1850, 1850.1, 1850.2, 1850.3, 1852, 1853, 1853.6, 1853.?, 1857.3, 12900, Article 3 (commencing with Section 1854) of Chapter 9 of Part 2 of Division 1, and Article 3 (commencing with Section 730) of Chapter 1 of Part 2 of Division 1, of the Insurance Code are repealed. a ........ t~ ae~ ~ ~ life ~ .........: .~ ..... :m:,c~ t-o t-he .ransac.:an o~ crc.:, tile ,s ....... y ......y t~.~ ....... g. ~: .......e~ ~ 9utstandmg ~a.ancc ~ e~ ~ spa=.= c×tc.~s;on ~.crc&t by ~ bank ~ ~ ~ ~ ~ i~ ~ i~ cyan. ~ Oae involuntary uncmploymcnt ~ ~ dcbtc,~, e~ bath. & eommcrcial bank ~ ....... ed t~ ~ .......... e~ t~ ~ a-~ :-~urancc ~ra.;cr ~ ~ m ........ ~ ..... v~.~ ~ ...... t-he authonzatmn ~ the. ~cra, .,csc:;c ~ prlar t~ January ~.~'~, ~, ~ subsidiary ~ ~.....~,~"~ .... ..~..o~ ...... z ~ sell insurance (except t4~ ~ubscqucnt authorization t~ ~v .... ~a ............... be .~,~. this ........ ~, s~ ~ m,~ ..............e esmpa~ ~ a statdchartcrcd rr,,akc ]aa,ns pursuant t,o gi;'islan ;t (commcncing ';,'it~ $cc~an 1,%%300), gl;'isian 9 (commcncing w/Pa £cctlcn ~%20), Di;'isian ~0 (eommcneing with £cct~an e~ Dis'klan ~4 (commencing w/~ $cctlan 2S~) e~ ~ Financial Carla. ................... e~: ....... e t4t-le .......... car...Fany Financial ~'~^ cxccpt ~ .... u .... ~^~ .~..a~ · : .... k~_:_^a ~ ........ a .............. t-kc pra;'kians ~ Article I ;~-' .... : ..... :,k c~.^- ,aoc~ ~ Chapter ½ o{ D~,, § o~ r~:..:.:~ tt ~ a trust camFany cantrallcd by o~ under ca=man cantral ',','its a ~ ~mura':cc cc. mp=:y. ~ "Subsidiary" =cans ~ corporation, assaclaSan, e~ partncrship, av,'nc~ ia ....... e~ paw by ~ ..... ; ~, .............. ~ ..... -(4)- ", ..... Jata" mcans ~ corporation, association, ei, partnership canncctc~ ...... gh t-he ........... v MPa .~,v~r .....e~ ~ ......:..,~r~, by a ........... va--~ .... ~ ~ ~ ....... , ~ ......... insurancc" meat~ insurancc e~ t-he life ~ h ...... efa ~arra;;'cr .ram a ~amz: ..... a ~ ~ccurc t-he rcpaymcnt ef t-he arc. aunt harrowed. ~ "Can~a]" mcans t-he passcsslan, by ~ mca.':s, e~ the ~ t~ ~ ..... tJae .......... ef ~ managcmcnt ei, ..... 'x:~o e{ ~ .:~nsc~: .......... ~ br~.kcr. ?~O. ~ purpasc e~ t-~ ckaptcr i~ t~ ~ t-he ~ wdfarc by rcgulating insurancc ratcs a~ bcrcin pra;'i~a~ te ~ esd ~ tbzy shall ~ be .......... ~ ~ ........ ~ drier, minatory, fe ~u ........ ~ .......... ~ ~ ~ ra.":ng organieatiom ~ ~ organizations ~ ~ att .................... tm4 t~ .......... cooperation .................. m m?.~ing ~i atkcr rclatc~ n.attcrs. t4 i~ t-~ cxprcss L-~tant e~ ~e~/~ ~ l~-~-~t~ ' (m4 cnca'.:ragc eompctiti0n ~ athcr-,vlsc. ...... t~ ~ eh~ ::~ orgamzabon meat~ .... : ~ cbjcc, e~ purpasc fae ......... ,~ ~ ..... , ...... ~, v ..... ~" ...... ~, ~: admittcd insurcrs which ae~ in canccrt fo~ t-he purpcsc o~ ~ ~ ~ ~ a rating org~ization. ~ ~inglc in;u:cr ~ ~ ~ .... ~ ~ ~ ~ ...... organiza~on. ...... ~ ~ ~ org~zafion mcans cvcry parson, ct,c: r~ : ~ s undcrwntmg ............... ~ ~ ~ ........ ~ -- information ~ ~a~a ~ ~ m ~ ~vko~y, ~ ~i~tin~ish~ ~rc~ ~ ~ ~, capacity. ~ ~ .... ~ ............... "~- ' .......... d ........ :' ~ ~ ..... e m ~ usual ccur;c ~ i°~0.3. UrJc= ~thcr-a'i~c apparcnt k~m ~ ccntcxt, ~ ~ ckaptcr: G88 ifa-)- "Mcmbcr" mca.ns s-~ insurcr ;;'kc, participates m e~ i~ cntitlcd t~ participate i~ t~ managcmcnt of a rating, advisory ~ atbcr organization. ~ "~bscribcr" mcans ~ ........... ~:~ ~ furnlskc~ ~ ' - .......... ..... ~ ...... ~ .......... ~ a ......~ orgamzatmn ~ ........ ~ ~ ~ a .......... , ,o~, ~ fcllcwlng .... a~_a..~.n .__~.. making applicable: ~ ...... ~ ~ ~ ..... a;vc ~ inad~uatc,~ .~ ......... ..... a~:nc~,a ~ shall ~ unEarly d~criminatory. ~ ~ shall ~ kcld ~ ~ cxccsslvc unlcs; ~ s'd;k ~ ~ unrcasonably ~ ~ ~nsu:anee Frsvldcd ~ ~ a =a=nablc ~ ~ ~mpctition ~ ..... ~ ~ ~ ...... respect ~ ~ cl~ficatmn ~ ......... ac, ~ ~ app.;cable. ~ ~ ...... ~ ~ ~ ~ inad~uatc urdcss ~ ~ ~ ~ unrcasonably ;n:uranee prcv:~ed ~ ~ ~ ~ such ~ ~ ~ in:urcr using :amc ~ ~ con~n'dc~ ~ ~avc, ~ c~cct ~ ~c:tr:ylng. ~mpch~ion ~ crcatlng ~ ~midcrahon ~ ~ gk'cn, ~ ~ cxtcnt a¢~lka~lo ~ ~ ~ ~r~: ~ ~ cxpcr~cnce w~t.2n ~ cut:~dc ~ ~ m ~nflagration ~ mtastrophc Xa~ard:, ~ ~ rca:cnaElc ~argln ~ undcrwrihng ~ ~ ~ntingcn~cs, m ~ autsldo ~ Statc; ~ ~ ~ ~ ~ ~in;uranc~ ratc;, ~nsidcration ~ ~midcration ~ ~ ~ givcn m ~ ~ ~ ~ ~ rata; ~ ~ividcn& ...... 6o ~ una~orb~ ~ .......... ~ ...... '~ ~ zc,urnc. ~ :nsurcr- ~ po~cyholdcrs, mcmbcrs ~ m~cribcra. ~ ~ :ystcm; ~ cxpcnsc prcvisi~ns includcd ~ ~ rata; ~ ~ ~ ~ ~ .... ~ ........... , ~ ......... ~. ~ ~ ...... ~:~n ~ ~mb~nahon ...crc&. ~ Ri;k3 ~ ~ grzu~ ~ cl~ifi~fiom ~ ~ cstabli~hmcnt ~ ra~c3 ~ ~ ~aafli~hons ~ mo&fi~fions ~ cla~ifimtions ~ ~ ~ c;ta~h;~cd ~ascd u~zn s~zc, c;?cnsc, managcmcnt, ~ cxpcricn~, ~ ~ ~.~v ....... ~ ....... , ~ ~ ........... , ..... ~ns~dcrabons. ~uc.. claaifi~tions ~ modfficafiom ~ ~ ~ ~ ~ u~dcr ~ ;amc ~u~tan~ly ~ ...... clrcumst~s ~ .... ~zn; ~ m engage ~ undcrwrifing ~ jzint minstrel, ~ ~ mzrc insurcr; v .......... ~ ~ ~ ........ ~ ~ ..... ~ ..... ~ o: ........ ~ prcpara~on ~ maa;ng i~:ura~zz ~ ~ ~ farm3, ~dcr~wifing ~ ~ ~ mvcst~ga~ons, ~ ............ ~ ~ ~ ~ ~e ............... ~ ...... mformabon .... , ~ carry;ns ~ ~ re.arch. l°e~.6. Mcmkcrs ~ su~;criScr; ~ rains ~ advl;~ry org~i~atiom may orgamzahom, c:tkcr ~nsi~tcntly ~ intcrmittcntly, ~ ~ ~ prcvidcd g a~ons ~ ....... ~ ~ ......... ~ ~ ~ ~ ~ .... r~ ~, ~ ci:kcr ~mistcntly ~ intcrmittcntly, ~ rat;3 ~ ra~a ;ys~cm; madc adz~t;~ ~ a raPm~ org~zafion, ~ ~ undcrwrit~g ~ ~ ~ ~ ....... e.~e .... ~ ~ ......~ ~ ....... ~ org~za~0n ...... ~ ~ ...... ant m ~ ;uc~ a~mcnt. c;ck~ngc ~formafion ~ ~ ~ ~ ~ org~izations ~ ~ ~ ~ ............ ~ ~ .......................... ~.~, ~ ~at~mahng ~ app!ica~cn ~ rating cack kn~urcr ~ ~ retarding ~ rcpc~ng ~ ~ ~ ~ ~un~ywidc ~ cxp~cn~, ~ ..... ~ ~ ~ ~ ~ ........ ~ ~ .............. dctcr~ng ~ ~ ~ c~mply ,.,.--:'k ~ :tandard; ~ .%rrb ~ ckaptcr. Suck rule: ~ plan; ~ ~ ~ ~ ~ ~ ~ rc~r~ng :u:ccF5~.c ~ dctcminafion ~ ~ ~ ~ ~un~idc cx;cnsc cxpcricn~. prom~ga~g ~ :alas ~ p!~n:, ~ ~m~ioncr ~ ~ ~ ~nsidcration ..... 60: ....... m~m ..... ~ ...... rc:ard ~ rcp~rt ~ ~ ~ ~ a claaffi~on ~i~ ~ ~ in~m~tcnt wi~k ~ rasing. :y;tcm ~ ~ ~ ~ ~ ~ioncr ~ ~ ~ ~ marc rating org~za~o~ ~ ~ org~za~om ~ ~ ~ ~ ~ ~ cx~c~cncc :ubjcct ~ ~ r"~cs prom~gat~ ~ ~ ~mmi~ionc~, ~ in~urcr~ ratkng orga~atiom. 141 ~ Rc~onablc rulc: ~ Flare ma)' be promulgated by ~ intcrchangc ~ data n ....... , ~ ~ ~vv ......... ~ ra~ng plan~. ~ ~ ~rdcr ~ furt~cr u~ff~rm administration ~ ~ commi~ioncr ~ cvcrS' ~n:~cr ~ raSng org~ization ~ cxck=ngc ~ ~ cxpcdcncc ~ ~;St~ in,ur:ncc aupcrvisory ~c~al:, ~n;urcr: o~gan~atiom ~ otzar states ~ ~ c~muk "Mtk t~cm ratcmaking ~ ~ a~ ......... ~ ...... ~ ~ c~n~cnt ~ ~ ....... ~ ~ ~ c~cc ~ a tc:~ ~ ~ ycar~, ~ ~ tcrm ~ ~cc ~ ~ Covcm~r. A:~c · Rating Org~tiom ~ ~ ~ e ra~ng organizafi~;. ~ rating organization ~ ~ ~D~ a llccn~c ~ ~ r;5~g org~ation U ~ ~Sdl mcat llcc=sc ~ fortk ~ ~ ~ ~ ~ raa=o orgamzatmn app~ .... :~n ~ a ~ ~ ~ ~mtitufion, ~ artlclc~ ~ in~rporation, mcmEcr; ~ ~u~cribcr~, ~ ~ ~amc ~ a~rc:; ~e rc;:~cn org~afion ~ ~ scrvcfl, ~ ~ e ~tatcmcnt ~ ~ qualifimfiom org~izafion. ~ ~ ~ ~ ~ ~ ~ Eccmc ~ a rati=g org~afion ~ a~;'a~c~ ~ ~ ~mmi~iOncr. ~ ~ ...... ~ ...... s ......... a ...... ~ orgamzahon aatbfactory e~4gcncc ~ ~ ~mm~ioncr ~ ~ ~ ~ . crm;t ~ adm:..c~ m;urcr ~ bcc ..... s mc ...... ra~ng organization ~ a rc~ .... ~ ~ ;;~L.;u. dme~ma~on. un~?tt~~ fa?, Z ~ ~nd !arms. ~ mcmEc:; ~ ~u~cribcrs. ~ Ncltkcr prac~cc ~ ~a=c~n ~ ~ ~ ~ intimidation. ~T~:,~ ....... ~ ~ .... -~- ~ ........ ~ ~ orga~zafion ~ ~ ~ ~ ~... ~ ~.~ ....... ~ ........... . ~ ~ ~mm~ioner ;hal! ax:mina cack ~ ~ ~oncr ...... ~ ~ .... r' '~"'r ~ mcat: ~ ~ ckaptcr. tkc:c{;:. ~ ~ e ratk~g org~afi0n ~ ~ ~ m~rc ~ ~ c.~aca ~ubdi~sions tko:caf ~ cl~: ~ ~ ~ a ~ ~ ~mb~afion tko:col ~ ~ Nobnt~t~d~g ~ p ......... ~ l .......~ ....... pc ....... ~ e ....... ~ ina ..............p ....... ..... ~ .m~ tcrmma~on. ~;... ~ .... ~ ~ ~ ..... ~ ~~~~m~mncr ~ Statc undcr ocm~cn m~ag~t ~ a&mittcd in;urm~cc ~ wklck a rafting orga~zafion ~ licc~;cd orz~izafion may rcquirc ~ a ccndibcn ~ mcmbcrs~p m~rc ~ ~ ~ L~;urcr; ;k~ kcccmc mcmbcr; ~ ~uMcfibcrs. ~ & warxcr: ~cmahon ......... ~ org~ahon 14~ g ed P-~ a ed Divi:ian g -,'.'hick dac; ~ meke rata:, rating plan: o~ ra~ng ay:tam: ~ ixauraxcc ecvcrlng ~~"~k:""'~ ~ cm~laycra ~ ~mp~sation ~ dam:ga: ...... ~ ............. Mngshorcmcn s ...... ,icc~;G~ ~ e ...... o organlza~ ~ rca;ia:cd ~ ~ advLc:7 orga~zation pu:;uant ~ ~ p:cvLicn; ~ ~ ckaptcr ~ ~ ka';c :'arkady' --~dcr ~ liccnac ~ e wcrkcra' ~mpcnsation in:ur:ncc ~ Ccllcct ~ taEalatc ~ ~ cxpcmc cxpc~cncc atatia~c; ~ ctkcr infomation ~ ~ rcla~kug .~m.. ~ ~mp~safion .._a~. ~ Unltcd ~ ..... ~ngshorcmcn's ~ ~ Worker:' ~mpcmation ~ Furnlak ~ ex organizations, advLcry organizations ~ iaaa:cra ~ ~ ~ ctkcr otatca, ru..o ~ araS:Nc:! plan: ~ ~ .... a ~ ~ rcccrding ~ rcpcr~ng ~ in:afar _~_k~.. ~ .t~. ............... :: ............... · _n~_ :ack cx~crlcncc ~ ~ ~ imurcr mcm~cra ~ ~v ..... cup ........ m ~ ~ ......... m ~ ~ cka~tcr. ~ in~;---~ co;'cNn~ ~ -: ....... un~: ~ U ............ ~ngshorcmcn s ................ p , ........~. raSng plan: ~ raSng sy~tcm:, ......... g ........ ....... ~ ~mmi~ions ~ ~ iaaa: ............. ~mm~lon ...~ ..... , citizcn~"~ ~ ~ ~ ~ con.al ~ llmitatiana ~ unlawful rcS:to:, ~ ......~ ~mmia~om ~ ~ ~ ~ adcquatc ~ camp~ctc ay:tam ~ rcgala~cn ~ inaurcr ~ ~.~-~ --~%ccr kualncaa pracScca. ~ M~lamrc ~m~ions contlnuc ~ pre;ida cri5c~ ~ ~ iaaa:cfi: ~ ~ atatc fram :_.~..a:_- insolvcncics, .......... ~ camp:ny ~ i~crca;c~ ~nmntra~on misr~rcs~tafion 1 ' I ~ '--*~--~ ' cnt , ~ ........ ~c ...... ~ra~b, ~ ~mmi~i0m 3cc~am ~ ~ cadc. ~ ~ ;ack ~midc~ation ffafl~' ~ a mDdcm~or. ~ ~ ~ ~ 'arAawF'~ ~ ~ insurance agent ~ ~rckcr, ~ ~ in:ur:ncc ~..~..~-~':-:'~' cmp!cycd '~...~.'-~"~w. ~ rccclvc ~ Financial bcnc~t fram ~ automobflc ;~.~ e ...... u .....automobflc ~mprchcmwc ~ ~b~sion ~ applier wi~k ~c:pcc~ ~ ~mm~cial ~ non~mmc~ci~ pzllcic: ~ automobflc i~;u;a~cz. ~ ~ Fa:Fa:ca ~ - w ........ ~ ~mlom ~ ~ ~ in;afar: ~ thcS: agcnb ~ La;ur:ncc ~:urm~cc agent, brai:ar ~ ac'Jolter ~ ~ "~!a'::fal rckatc. ca, cc!cfi, e ~ may hwfuEy :cccivc ~iom ~:_~: ..... ~.._~_ ~ .... ~:~. ~ ~ ..... & n.., ~ gi,=-=- i ~ c~~ ~ ~ ~ dca: ~ ~anaact in:ur:ncc ~ eanncc~cn "Mt5 auc5 ~licy ~ ~ pa}~cn~ ~ madc purauau: ~ a ccnNacl cn~crc~ ~ ~cfcrc :ach solicitation mad issuancc, hct;vccn t-he insurcr pa)hng or allo;;'L';g t-he commission a-nd suck parson. 755.5. t4 is unlawful t~ tm insurance agcnt who is n~ also liccnscd as an imurancc bt:skor to rca:irc eommieaiom defied from ~ p!accd ,,,,q-t-h tm insurcr ~deh has ~ appclntcd him to ae~ as its agcnt ia t-he transaction of sueb 14 is unlawful fo~ tm inx,:rancc solicitor to rca:irc commissions s~ in:urancc ...... troy .................. t-he ~..v.w ~. for ........ bees ............. v--~,tmtise or disakM!ity insurancc tr. ansactcd I~ him ",~ndcr indh'id',:al Il:Ch:CS as life or disability agcnt issucd t-o him pursuant to t4fis cc. dc. t4 is -,mlawf-a! for tmy For;ch to pay to tm insurancc agcnt o~ :olkitor say commissions which he es-a no~ lawfully rccci;'c. Ex:cpi as pros'lUaU ia Scot,on ~ i~ is unlawful f,~ tm insurcr to eeee~ f~/ts o~n use eommissions en insurancc pla:cd with ~othor imurcr. 7~.S. Notwithstanding hhe pro;'islons of Sc:rich 7~.5, tm insurer par ticipating m tu~ ..... , .... ~ ..... as v ....... f~ m ........ 1 (commcncang v,4th ..... an ~ ogee&, trod s~:ch agent ms.y receive, a commission or considcration on ~ automobile or ~ ~ written ~ ~ to ~ commission or considcration rcqulrcd under such plan ~ such agent ba~ 5con de,aig~4ed by the sueb plan. 755.7. ~ per:on, including b~e va~ llmltcd to troy per, on Il:cna:d, ceftin2 ........... t-h4s .... or e×~...v ......... eonsidcration.~a":~^~..o.o, or agrccs to ....... , ~ pcrson concorning in:urea:cc, ., .... to; or ..... ~ ........... ~ ........... conrad:ration ~, ..... sc ...... ~' portion of mW insurmncc commission ~ veto-r accrue, d~roctly or ~ to soeh pets~ ~ so ad:qscs or asr:c: to ads'is:, is guilt)' of making tm un!a;;-fu! rchatc trod g~4W of a misdcmcanor. amount or scgrcgation of t-he empto,ne~ p~ ~ ~t t4~e cmpkycr, pcrsona!!y or knowingly t.~roug,k, bis employ:c, procures a ~ p~q~um by ~ ~ ~ ~ ar,cunt ot, segregation, :ut?. misrepresentation is tm u~,la;;'fu! rebate as to hhe employer. m ..... ease~ ...... to t4~e ..... mtm ........ t~ ...... t-he t-he ?,aver premium paid ~ t4m ~ pr-opedg ~ T-he commissioner :bait eottee~ t-he amount so p~ ~ n~y ~ ~ ei~ action ia his na,.'nc as commm~oncr to .......................... t-he m~orcprescntation ts ......to mad ............~ Wemm~ ~ the ....e Compcnsation ................. tn ...... ease t4~ ........ ~ to d, te ...........t4~ ........shut he ......... action ia -the name of ~ State Compensation Insurance Fund ~ ~ amount so col!cctc~ ;hall ~ccomc ~ pm* of ~ fund. g~. When ~ statement of Oae tmaou~ or scgrcgation of ~ p~ ~4 is mater;ally .... ~,,o t-he ............ as t4~e ..... ~t-he v ..........trna ~ t-he acocptanec es ~ Es'cry ir. surer :hall cxcrcl;c reasonable diligence ia ;ccurlng t-he c, bscrl vance of t. his sa,t4ete by its agents. g~J,. 14 is unlawful (o~ ~ insurcr to appoint tm agent fl~ t-he purpc:c ......... ~ ..... ~ or t4~ ~--v-w ~- or pc ....... .~ ....... ~, P~e appmntmcnt e~ t-he ~a_ z~ .,-~h~'~'~-~'~ ......................... ,~a in;urancc" mcan: ...... anco cos-trina tm insurance agent, k_~,.~_,. ~., or s~licltor; or t4is or ........ ..... his ,~,^~v'w ~' .or iris .... v'w .... v ..... su~a..i;.i:ion within the second dc§rca by blood or marrlagc. tfbis ......j~. es a corporation troy t- ............. 2 or ......... · ....... 4d)- t~ his cmpkycr is a partncrship or association, a~y person owning tmy interest ia saeh partncrship or a;;oclatlon, -(e-)- t; the ag~m or broker is a corporation, ~ person directly or indirectly -s .... or .......tt~ at~ co~poration ........ es ~ .......... · ....... : or tn ...... 1 ~ If t-he a~cnt or broker is s corporation, troy corporation making consolidated rot{sm: for U~.itcd State; income t-~ purpsscs ,,,K,t-h a~ corporation described s-,;bdh'islon 4~ ~s~,,-, br¢,.~,, or ......... Pw .... m tree ye~ ...... t-he }. .......... tm imurancc ~ by sue~ lie:nsc: payaSlc ia t~ same )'car, t-he receipt commissions .~u~, ~t-he cxccss is tm unlawful rebate. ..~, .~^.~ ....... r, ...... u ealcndar ye~ following t-he ...... .... ,: Om ...... a mad ..... t-he licensing of such ..... ~..^~ ..... ~:~:,^. · ~on ............ r ................by ~ w·'~.~ va troy one s,aeh ......... ......... y ~.,, t-he ..... v- of comm~sdlons .v~,, d~te cxcc;s os'or such ~ percent tm organization t4te sixth calendar year ~ he t4qe ~ calendar year hoginnlng We 2 .....or ...........t-he ini.ia, ,lc:rising of t-he organization, or ~ predecessor Pros'idea fur',her, hl~ tt~ section doc: e~ ~ .... m..:~..~ ~ .......... ~.~. G88 u~:~,,,s ...... ,,-..~a to transact e~ troy organization ........ m~ corporation or partncrship ........ :-~ tm :--~ ..... brokcragc l`~o...~o., ......... ~ ~ bccn continuously ,,,,.,o~ ...... ~ ia sc, mC ma;ncr as tm ~,~""~,., ~ agcnt, broker or ;ollcitor fee ~ least tls years; ai~ ~ is ~ !ca;t C~ years e~ ~ge a~ t-he bcginrAng of the col:naa,- )'car. W~cnc;'cr tm o~ccr o~ dircctor of a corporation solicitor ia 0se transaction of/n:urancc co;'crk;g 0~e corporation, he shall he conclusivcly prcsu.7,cd t~ ka;'c rca:lo'cd t-he ~ commission o~ x,:ch .~ntract ;vhilc tm cmploycc of t-he corporation. Wkcnc;'cr th~ rcmuncration ~or sar;haas of tm cmpkycc is dc:rca:cd by the cmploTcr or is ~adc unreasonably small in ........ t~ ~ .... v,w ~ ~ v .......... as tm insura,'-¢c age~, broker, or :ell:liar, to transact par:anal or controllcd insuraacc, i~ shall be eonclusivoly prcsumcd such cmployee rca:is'cs t-he ~ amount of commission tm sueh par:anal or contra'nod imurancc. .... as .... m t4~is ............... the ........ yea~. Suspcmmn .... fibre2 ......... the ..... of t4ae ~. m ........ t, he 7~.5. As ',:sod ia t4~is scc~on "parsons! or ir. sara.ncc eo~r4~ a life age~, or ~ t.~ sp0usc, his cmpl%'cr, his emptoye~ spouse, or any g~ap of cmployccs .4b-)- ~ person related to ~ his spouse;, his Cmp?,ycr or his employer': ~ t~ I~ .... v-w ~- es s corporation, troy ~ ~eet~ or rich. 4d-)- tf his orap~ is ~ partnership or a;:aclati;n, ~ person owning th'D' interest ia sueh partnership or 4e-)- If t4ae agent is ~ corporation, ~ pe,~ya ~ or co:;trol2ng a majority of tJae voting stoclr or co.': ..... tf comm~ions e~ per;anal e~ etmt-r~qed insuranm transacted by e ~ agent r~,~:;'c~ m ~ y~., o~ .......................... by .................... his ........ as I~ ~s ..... t-he ~ of commissions ~ ........ t4~ ...... s~ .... t~he .....~ ye~ ~ t-he ~ a-Seth, whehhor continuously J/,eorrsod or ~ iS commissions or ccnt;ol!c~ ins'atonce tran;actc~ by ~ un~cr ~ e~ at4 suck license: rccci';c~ ;amc calondar ye~ oa other insurance tramactcd by hi~ under ai~ or att sueh ,,,~..~,~-' ...... t-he receipt of commi~iom upon personal or ~..,. excess of 88% percent of thc, sc tm soeh other insura.-:Cc is tm unl:,v,'ful rcbato. F-~ t-he pnrpo:cs of t4tis pm,~tg-~gb;, if 0se Eccnsc he it j~int Erin llccn:c~ ~he sixth )'~.. o or ........... t-he ........ ~ of t-he ~ ell it ...... fi~eh ....... ~oa ae4¢ ............the ~,~ ..~ he oft-bis scctlon sop~ based ~ att~ f4-m~ tieeasos i4 mag' ..a;'c hem ~unng t-he calendar yea, r; trod tm in~i;'i~ual named e~ tree or moro -(4-)- is tieense, d ~ att of ;ach ede~ad~ ye~ ~ corporation e~ partnership ~ business under; ~ .... continuously ......... ~ ................as beginning of t-he calendar )'car. .... as .... m this ................ t4~e eateador or ....... of ........ for ..........oft-his ........ may he ~ a~ a-~y ............... r.4~e: ........ t-he .....of the ge~ m ........ t-he g~. A~ insurer, in;urr.':cc agent, broker, ~olieite~,, or life agent ~ T-he fc!!o',vlng sets a~e ae~ unlav;ful rebates: 4sa-)- T-he mtcurn by tm ~ is~ potieies e~t por4q~a of the ~ .......... asa .............. t, he ~v,.,~ soeh r, clic).., ~ T-he paymcn, of commission by ~ insuror, or insurance agent, ~roxor or marl, nc insurer: as bclng aflflltlonal to the ..... '~ u_^~.^.,. · . -5 ..... or ,~ ....... commls01on. ...... , or sc ....... , et; e commtssmn m i, espe~ t-e s v~i-w is insured, or t-he reeeivi~ by sueh payee of sueh commission. ~ ~ pa)dna by tm insurer of bonuses to policyholders tm nonparticipating surplus accumulated &wm~ nonparticipating insurance; ~ ~ ....... as~ ......... by t tise ........ of ~Y v,- p ............. e~ it partwlpahng t' .... a~ ~ ....... vw ....... ~ ..... to pohcyholdcrs ................ v .......... a~ ~ ....ome )'car ....... ~ to t4~ inaurcr a~ its home pcrecntagc of t-he prcmlum ;;'klch t-he ~ ~ ~a;'c pa~ ~ t-he wcckly collcction of such prcmlur:.,s. 143 5c,]dcrz of spccial eompcnsati0ns, ~ ~ae al!c, wlr. g ~ rccclvlng of crcdit~ a!rcady agra?,, upon i-n ti~ i::surancc eo,at-me~ nc,':.' mfarcc. '6)- T-he paymcr, t by ~ inaurcr of ~ partlan ~ t4tte insarar, cc prcmlum~ payaE!c by i~ cmpkycc~ pursuant ~ ~ ti~ tr.;afar, cc pragram ar. dar which ~ ~ o~ marc of i~ cmplaycc~ are rcqulrcd t-o carry ~ in~urancc o~ thclr t4,,,es long ~ t4~y rcrr, ain i~ the cmploymcnt ~ imurcr. ~ T-he paymcr, t o~ allaw~ncc of ~ ~ o~ commission by o~e :u:cty ir.~urcr ..... ~ ~ of t4~ go~[ ~ .......... ~ of pohcyholdcrs o~ o~ tm agcnt o~ Er~kcr m eol~idcration o~ eommi~iom o~ port~or,~ t4e~-e~ t~ ................. dby t-he t~e/4 .......... ~,~ ~ of ~h cons~dcrat~on ~-e pcrsaa rccc:vmg ,,,c,,, ;;'ct ..... c ..... ~ ~ ........... tc ......... ~ .......... ~ mcnm~natc ....... ~ pr~ccuhon ~ ~ ~ maintaincd ~ ~ parian ~ ~ ~ conmrmng which ~ ~ Proposition 104: ~alysis Continued from page 1~ . Permits, but does not require, insurance companies to offer an unspecified "good driver" discount. ~ Enacts other insurance-related provisions, and reen- acts many provisions related to various lines of insurance which are currently in law. . Provides that if~ this measure receives a higher num- ber of votes th~n other measures on this ballot, then those provisions in other measures that relate to the business of insurance shall have no effect. No-Fault System, Starting July 1, 1989, this measure establishes a no-fault motor vehicle insurance system that (1) applies only to bodily injury and (It) permits individuals to sue for losses which exceed specified limits. This measure applies to private and commercial motor vehicles including automobiles, trucks, buses and trailers. It does not apply to motorcycles and "off-road-type" vehicles which are riot registered with the Department of Motor Vehicles. This measure contains the following features. 1. "Basic" Benefits. Requires the following minimum basic benefits to be paid by insurance companies to injured persons regardless of who is at fault: · Up to $i0,000 for medical expenses; · Up to $15,000 for lost wages; and · $5,000 for funeral benefits, in case the injuries result in death. In general, the basic benefits would not be provided to an uninsured motoiist, a person driving a stolen car, or a person engaged in the commission of a felony. This measure provides that the basic benefits shall be available only to pay medical expenses and lost wages to the extent that these expenses are not covered by work- ers compensation and d~sablllty benefits. Any dispute concerning payment of basic benefits would be decided By arbitration, and not by court trial. The arbitration wduld be conducted in accordance with procedures established by the Insurance Commissioner. 2. Recovery of 'Workers' Compensation Costs. Re- stricts the ability l of employers to be reimbursed for medical expenses and wage losses paid under workers' compensation and [other similar programs when employ- ees are injured in motor vehicle accidents. Currently, an 144 ir, sarcr's ccrtlflcatc of autkarity ~o ~to t-he class of insurancc i~ wkich ~ vi:fatten ~ ~ articlc ~ccurrcd. ~ ~ ~ i~urancc agcnt, krakcr, ~ ~o!icitor knowingly ~ wilfully vizlatc: a~rdan~ ~ ~ ~r~ccdurc praviflcd ~ Article ~ ~ Ckaptor ~ ~ ~ ~ ~ ;uspcnd ~ rcvokc ~ viclatcr'a llcc~e. ~ Notwithstanding ~ ~ m ~ ~ ~ ~ contrary, ~ ~ ~ ~ unlawful ~ ~ licensed insurancc krokcr ~ ~ a ~mmi~ion ~ ~ agcnt ~ braker llccngcd undcr ~ ~ ~ Mcxic~ ':,'kan ~uck agcnt ~ brckcr ~ Mcxicc rcfcra ~ ~ inaarancc brckcr ]iccnacd m ~ ;tara a rcaidcnt ~ Mcxico ~ wiakca ~ okta~n a policy ~ automobilc liability inaurancc ~ ~ cffcctivc ~ ~ ~ from ~ inaurcr liccnacd ~ ~ ;tara, ~ ~ krokcr ncgotia~ca ~ cffccta suck t p,,,,~ ~ ........... ~ such rcaidcnt ~ Mc-xlca. SECTION 8. Technical Matters (a) This ~ct shall be liberall~ construed and a~vlied in order to full~ promote its underlying purposes. (b) The provisions of this act shall not be ~mended by the Legislature except to further its purposes }~ a statute passed in each house by roll call ~te entered in the journal, two-thirds of the membership concurring, or by a suture that becomes effective only when approvM by the electorate. (c) If any provision ~f this act or the application thereof to an~ verson or circumsances is held invalid, that invalidit~ shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. employer may recover the cost of benefits~such as workers' compensation~it provides to an employee who was injured in an accident by another person who was at fault. 3. Additional Recovery. Permits an injured person to recover costs in excess of the no-fault basic benefits by suing the party at fault for the accident. 4. Noneconomic Losses. Prohibits recovery for non- economic losses (such as pain and suffering), except in cases involving (a) death or (b) serious and permanent disfigurement or injury. It would not limit the right to sue for damages in cases involving (a) the operation of an uninsured vehicle, (b) harm caused intentionally, or (c) specified crimes. 5. Attorney Fees. Limits plaintiffs' attorney contin- gency fees in motor vehicle accident cases involving bodily injury to the following: (a) 15 percent of the basic no-fault benefits recovered; (b) 33.3 percent of the first $50,000 recovered over the basic benefits; (c) 25 percent of the second $50,~ recovered over the basic benefits, and (d) 15 percent of the recovery over $1~,~. 6. Premium Reduction. Requires insurance compa- nies to reduce~by 20 percent for a two-year period (July 1989 through June 1991)~their average statewide pre- mium rates for specified types of motor vehicle insurance. This would include rates for basic bodily injury liability, uninsured motorist and basic no-fault bene~s provided under this measure. This reduction does not apply to the personal property liability damage, collision and compre- hensive portions of a motor vehicle insurance policy. Other Insurance-Related Provisions The measure enacts other motor vehicle insurance- related provisions including the following. 1. Claims Settlement Practices. Requires that dis- putes between an insurance company and persons other than policyholders be settled by arbitration rather than by court action. 2. Penalty. Increases the penalty from an "infraction" to a "misdemeanor" for second and subsequent convic- tions for violation of the current financial responsibility laws. 3. Insurance Fraud. Increases the authority of the Insurance Commissioner to investigate and prosecute insurance fraud. 4. Premium Discounts. Permits, but does not require, G~ that insurance companies offer unspecified premium discounts for good drivers, defined as drivers who have not been responsible for an accident, or had a moving or an alcohol or drug-abuse traffic violation, for at least three years. 5. Conflict of Interest in Employment. Prohibits former employees of the Department of Insurance from representing insurance companies on certain issues that were pending before the department or in which that person participated, within one year after leaving the department. 6. Limitation on Setting Insurance Rates. Prohibits public officials from setting or approving insurance rates other than those for workers' compensation insurance and assigned-risk insurance. Reenactment of Insurance-Related Provisions This measure reenacts, without modification, various insurance-related provisions which are currently in law. These include (1) the current procedures by which insurance rates are regulated, (2) the requirement that the Insurance Commissioner be appointed by the Gover- nor with the consent of the Senate, (3) provisions that prohibit discrimination in motor vehicle liability insur- ance based on various factors, and (4) provisions that prohibit insurance agents and brokers from paying a rebate to a buyer of insurance. The reenactment of these and other provisions in this initiative would make future changes in these provisions more difficult. This is because such changes would re- quire either a two-thirds vote--instead of a majority vote--of the Legislature, or passage of another initiative by the voters. Effect on Other Insurance Initiatives This measure provides that, if it receives a higher number of votes than other measures on this ballot, those provisions in other measures that relate to the business of insurance shall have no effect. Fiscal Effect Costs Department of Insurance. This measure would in- Proposition 104: Text of Proposed Law Continued from page 103 The term does not include the United States of America or any agency thereof except with respect to motor vehicles for which it has elected to provide insurance. (14) "Personal injury" means bodily injury, sickness or disease, including death resulting therefrom, arising out of the use or occupancy of a motor vehicle as a motor vehicle on or after ]uly 1, 1989 which is accidental as to the person suffering the injury; it does not include injury occurring during the use or occupancy of a motor vehicle but not arising out of such use or occupancy. (15) "Punitive or exemplary damages" means awards or portions of awards which are imposed essentially as a punishment or a penalty and not as compensation to a claimant for whatever proven loss may actually have been incurred by such claimant. (16) "Required loss benefits" means those benefits required by Section 12003 for economic loss arising out of personal injury. (17) "Use of a motor vehicle" means operating, maintaining, loading or unloading a motor vehicle, except that such term does not include.. (a) occupying a motor vehicle as a passenger while not operating the motor vehicle; (b) conduct within the course ofa business of repairing, servicing, or otherwise maintaining motor vehicles unless the conduct occurs off the business premises; and (c) conduct in the course of loading or unloading a commercial vehicle as the term commercial vehicle is deft'ned in Vehicle Code Section 260. (18) "Work loss" means the loss, during the life of an accident victim, of income such victim would have earned, but is unable to earn because of disability G88 crease the Department of Insurance's administrative costs by about $2.5 million during 1988-89. In years following, these costs could be somewhat lower or higher, depending on workload. These costs, payable from the Insurance Fund, may require additional fees and assess- ments to be levied on the insurance industry. State and Local Governments. While some local gov- ernments purchase insurance, most %elf-insure" by rely- ing upon their own resources to pay for losses and claims resulting from motor vehicle accidents. Because this measure reduces certain types of motor vehicle insurance rates and limits claims for noneconornic losses, it would result in unknown savings to the state and the affected local governments. Recovery of Workers' Compensati°n Costs. This mea- sure restricts the ability of employers to be reimbursed for medical expenses and wage losses paid under workers' compensation and other similar programs in motor vehi- cle accident cases. State and local governments, as em- ployers, would experience both costs and savings from this restriction. The net effect is unknown. Courts. Because this initiative places limits on court actions for noneconomic damage claims, it may reduce, to an unknown extent, annual state and local court costs and local court revenues. Revenues Insurance companies pay a tax based on the amount of gross premiums they receive each y~ar from insurance sold in California. These tax revenues are deposited in the State General Fund. This measure requires rates for bodily injury, uninsured motorist, and medical liability coverage to be reduced for a two-year period. These three components account for over 40 percent of total motor vehicle insurance premi- ums. The required rate reduetiotts--by themselves --would reduce state insurance tax rex~enues by about $25 million a year. This estimate assumes that no offsetting adjustments would be made in other insurance rates--not restricted by this measuremto compensate for these reductions. Whether such adjustments would occur is unknown. The rate reductions required by this measure would expire after two years, at the end of tune 1991. resulting from personal injury, from remunerative employment or self- employment, reduced by 90% of any income from substitute work actually performed by the victim and by 100% of the income the victim wouM have earned in available appropriate substitute work which he/she iwas capable of performing but unreasonably failed to undertake. Work loss does not include any loss of income occurring after the death of the accident victim, regardless of the cause of such loss. 12002. Compulsonj Motor Vehicle Insurance Requlfements. (a) Each owner of a motor vehicle required to belregistered in this State or which is operated in this State by or with the express or implied consent of such owner shall continuously provide and maintain insurahce in accordance with this Chapter. Nothing in this Chapter shall be deemed to mqdify or repeal an y existing statutory requirements of financial responsibility including, without limitation, Vehicle Code Sections 16050 to 16057 inclusive. (b) The insurance required by this Chapter may be provided by a policy of insurance issued by an insurer authorized to transact business in this State or, if the vehicle is registered in another state, by a policy of insurance issued by an insurer authorized to transact business either in this State or in the state in which the vehicle is registered. (c) Subject to the approval of the Commissioner of lnsurance, the insurance required by this Chapter may be provided by self-insurance by filing with the Commissioner in satisfactory form: (1) a continuing undertaking by the owner or otheriappropriate person to pay required loss benefits with respect to every vehicle subfl~ct to the undertaking and to perform all other obligations imposed by this Chapter and by the motor vehicle financial responsibility laws of this State to the same extent as would be required 145 under a policy of insurance that wouM comply with this Section and with those laws; (2) evidence that appropriate provision exists for the prompt and efficient administration of all claims, "benefits, and obligations provided by this Chapter and by the motor vehicle financial responsibility laws of this State; and (3) evidence that reliable financial arrangements, deposits, or commitments exist providing assurance foe payment of benefits in amounts required by this Chapter and by the motor vebicle financial resRonsibilitll laws of this State and for performance of all other legal obligations relating to such benefits equivalent to those afforded by a policyi of insurance that would comply with this Chapter and the motor vehicle finanCial responsibility laws of this State. A person who provides the compulsory insurance provided under this subdivision is a self- insurer. (d) A government may provide insurance with respect to any motor vehicle owned or operated by it by lawfully obligating itself to pay required loss benefits in accordance with this Chal~ter. (e) The owner of any motor vehicle required to be registered in this State who operates it or permits it to be operated in this State, when he or she knows or should know that he or she tins failed to comply with the requirement that he or she provide the compulsory insurance under this Chapter, shall have his or her operator's license and his or her motor vehicle registration revoked or suspended in accordance with proved#res established therefor under the motor vehicle financial responsibility laWS of this State until he or she shall provide the insurance required by this Chapter, and shall be subject to such other penalties as may be provided by law. : 12003. Bequiredloss benef~.'ts. The insurance required u~der Section 12002 must, at a minimum, provide the following required loss benefits, in accordance with the provisions of Section 1£00~, to every accident victini for the following types of losses resulting from that accident: (a) Medical expense. Be~;efits for medical expense, in a total amount not to exCeed $10,000 per accident victim, for products, services, and accommodations furnished within three years of the accident causing the injuries. (bi Work loss. Benef_its for work loss occurring within one year from the date of the accident causing the ivduries. Because benefits for work loss are non-taxable and because of savings in commuting costs and other work-related expenses, benvfits for work loss shall be 80% of the work loss (after deduction of all federal and state taxes) suffered up to a maximum benefit amount of $1, OOO for work loss occurring in any seven day period and a maximum total benefit for all work loss arising out of any one accident of $15,000 per accident victim. (c) Funeral benefi't. In the event death results from a motor vehicle accident within one year .of that. accident, a single lump sum funeral benefit in the amount of Sg~O00 payabl~ to tie estate of the deceased victim. 12004. Optional offer. . Any insurer may offer basic loss benefits with monetary and/or temporal limits in excess of the requi~ed loS~ benefits required under Section 12003. An!l insurer may offer named insureds tl~e option of purchasing any o. f the modified forms of basic lbss benefits defined in Section 120t~ which are authorized by Section 1£011. 12005. Payment of benefits. (a) Persons eligible fo_r flequired loss benefits shall claim such benefits from sources of insurance in the following order of priority: (1) If the victim is an emj~loyee, and if the personal injury results from a motor vehicle accident while such~ victim was using or occupying a motor vehicle furnished by his or her employer, the insurance applicable to such vehicle, if any; (2) The insurance, if any; under which the victim is or was an insured, selected in accordance with Section 1201& (3) The insurance, if an~ covering a motor vehicle involved in the accident, if the victim is or was an uninsured occupant of such motor vehicle; (4) The insurance covering any motor vehicle involved in the accident if the victim is not an insured and is occupying a motor vehicle neither owned by him or her nor covered by insurance, provided that an insurer providing required loss benefits to such a victim shall be entitled to indemnity for those benefits_ and for the costs of processing the claim from the owner of the vehicle occupied by that victim. In the event such owner has made any claim against that insurer or against any person insured by that i~nsurer, the insurer need not pay any benefits to such owner until it has been fully indemnified for required loss benefits and claim processing costs incurred-or which might be incurred pursuant to this subdivision. (5) The insurance covering any motor vehicle involved in the accident if the victim is not an insured and is not occupying any motor vehicle. (6) In the event no insurance is applicable under the above priorities, a person suffering personal injury shall claim benefi_ts from the owner of any motor vehicle involved in the accident, which owner shall be liable as if an insurer in addition to any tort liabili~ of such owner. (b) Except as provided by a policy providing a modified form of coverage pursuant to Section 120lL every accident victim shall be eligible for required loss benefits without regard to fault, except for the following classe~ of victims.. (1) any person involved in a motor vehicle a~cident while voluntarily engaged in the use or occupancy of a motor vehicle known by him or her to be stolen or to be operated without the permission of its owner,. (2) any person involved in a motor vehicle accident while engaged in the use or occupanc!t ora motor vehicle owned by him or her (or by his or her spouse residing in the same household) with respect to which no motor vehicle insurance has been provided in accordance with Section 1£002; (3) any person involved in a motor vehicle accident while engaged in the use ea motor vehicle not owned by him or her (or by his or her spouse residing in same household) for Which no insurance has been provided in accordance with Section 1200£ if such person (i) would have been insltred under an insurance policy constituting insurance 146 for that vehicle had the owner of that vehicle obtained such a policy; and (ii) is not an insured under a policy of insurance providing insurance for some other motor vehicle; (4) any person who intentionally attempts to cause harm, to himself or herself or others, in a motor vehicle accident; (5) any person who suffers injury while engaged in the use or occupancy of a motorized vehicle with three or fewer load bearing wheels; and (6) any person who suffers injury while engaged in the commission of a felony. (c) Only one insurer shall be liable to pay required loss benefits to a person suffering personal injury, except that all owners liable pursuant to priority (6) of subdivision (a) of this Section shall be jointly and severally liable for such benefits. (d) A victim who is an insured under a policy providing for basic loss benefits in excess of required loss benefits may recover any additional benefits to which such victim is entitled from his or her own insurer. (e) lf two or more insurers are obligated at the same level of priority to pay benefits in accordance with the priorities set forth in subdivision (a) of this Section, the insurer against whom the claim is first made shall pay the claim as if wholly responsible, and may thereafter recover contribution pro rata from any other insurer at that priority level for the costs of the benefit payments. If contribution is sought under prioritF (4), (5), or (6) of subdivision (a) of this Section, pro ration shall be based on the number of motor vehicles involved. (f) For purposes of this Section, a parked or unoccupied motor vehicle is not a motor vehicle involved in an accident unless it was so parked as to cause unreasonable risk of injury. (g) Payment of benefits. (1) Timeliness. Basic loss benefits shall be pagtable when loss accrues. Loss accrues not when personal injury occurs but when medical expense or work loss is incurred or when death occurs, Benefits payable for accrued losses are not due until the insurer has received reasonable proof of the fact of the loss, the amount of the loss (including the reasonableness and necessity eany medical expenses and the duration of any disability), and the causation of loss by the accident or until such proof would have been received had the insurer timely requested such proof after being notified of the accrual of the loss. If an insurer uses reasonable diligence to investigate whether a loss of whose accrual it has been notified is payable, reasonable proof of loss is complete only when the insurer has completedits investigation or has received information which demonstrates that further investigation is not reasonably necessary. (g) (2) Interest on overdue payments. Subject to the provisions of subdivi- sion (g) (3) of this Section and to Section 12014, such benefits are overdue if not paid within thirt!t days after completion of reasonable proof of the loss sustained in accordance with subdivision (g) (1), except that an insurer may accumulate claims for periods not exceeding one month, and benefits are not overdue if paid within twenty days after the period of accumulation. If reasonable proof is not supplied as to the entire claim, the amount supported by reasonable proof is overdue/fnot paid within thirty days after such proof is complete. A ny part of the remaindbr of the claim that is later supported by reasonable proof is overdue if net paid within thirty days after such proof is complete. For the purpose of calculating the extent to which any benefits are overdue, payment shall be treated as made on the date a draft or other valid instrument was placed in the United States mail in a propedy addressed, postpaid envelope, or, if not so posted, on the date of delivery. All overdue payments shall bear interest at the rate of 18% per annum. (g) (3) Suspension of benefits. Where an insurer has requested of a person receiving basic loss benefits that such person undergo medical treatment or medica[ rehebilitation services, and such person unreasonably refuses to comply with such request, the insurer may suspend all future basic loss benefits until such person complies with the request of the insurer, provided, however, that the insurer shall notify the person in writing whose benefits are suspended of its action and the basis thereof and shall maintain proof of its request and the victim 's r_efasal to comply. It shall not be unreasonable for a person utilizing only non-medical care in accordance with a religious method of healing recognized by the laws of this State to refuse to undergo medical treatment to which such person conscientiously objects fqr religious reasons. (h) (1) Any dispute between a victim and an insurer regarding the insurer's liabiliOt to pay basic loss benefits, the amount thereof and any interest due thereon shall be submitted to arbitration pursuant to simpl~'ed procedures to be promulgated or approved by the Commissioner which procedures shall allow participation by the parties in the selection of the arbitrator. A decision by an arbitrator may be vacated or modified by a master arbitrator in accordance with simplified procedures to be promulgated or approved by the Commissioner and on such grounds as may be provided by such procedures. The decision of a master arbitrator shall be binding unless set aside by a court for fraud, corruption, bias or misconduct of the master arbitrator, or as exceeding the powers of the master arbitrator. A n arbitrator or master arbitrator shall award the claimant reasonable attorneys' fees expended or incurred to obtain basic loss benefits which the arbitrator or master arbitrator finds to have been withheld or delayed without reasonable grounds. Such awards may exceed the limits set forth in Section 12019. (fi) (2) Benefits, interest, and attorneys' fees shall be the only amounts recoverable for any and all disputes relating to a claim for basic loss benefits, including without limitation, delay in paymeng and no other amounts shall be recoverable pursuant to any statute or to the common law, provided that, upon pro_of that any payment has been delayed or denied by an insurer without any substantial justification, the arbitrator may award, in addition to benefits, interest and attorneys'fees, treble the amount found to have been delayed or denied without any substantial justification and any other consequential economic damages determined by the arbitrator to have been sustained as a result of the unjus#fied delay or denial in payment. The proceedings specified by subdivisions (h) (1) and (i) (2) of this Section shall be the sole methods of recovering such amounts. (i) A victim's assignment or agreement to assign any basic loss benefits to become payable under this Chapter, for loss accruing in the future, is unenforce- able except as to.. (1) Benefits for work loss assigned to secure payment of alimony, mainte- nance, or child support; and (2) Benefits for medical expense to the extent that benefits are for the cost of products, services, or accommodations provided or to be provided by the assignee. The assignee of a claim shall have no greater right to payment than would the victim had there been no assignment. A provider which accepts an assignment of medical expense benefits for products, services, or accommodations provided or to be provided to a victim shall not receive or demand any additional amount for such services from such victim except to the extent that payment of the reasonable value of or reasonable charges for such products services or accommodations as were reasonably necessary is prevented by exhaustion ~? the aggregate benefit limits or the time limits for furnishing covered products services or accommoda- tions applicable under the insurance for such victim's b'enefits. ~ ny dispute as to the reasonable charges for (or value of) or the reasonable necessity for products, services, or accommodations for which the provider accepted an assigned claim shall be resolved solely between such provider and the insurer denying payment for allegedly unreasonable amounts or unnecessary services but such disputes are not subject to the arbitration provisions of subdivision (h)'. However, any action to resotve such a dispute must be commenced within the time allowed_for the assignor of the claim to commence an arbitration proceeding had the clMm not been assigned, but in no event later than one year after the insurer has denied payments. If an insurer is found to have withheld or delayed payment on a claim assigned to a provider without reasonable grounds the provider may recover as costs of the proceeding reasonable attorncys'~e's (based upon actual time expended) incurred or expended to obtain the benefits which were withheM or delayed without reasonable grounds. (j) Benefits for work loss are exempt from garnishment attachment execution and any other process or claim to the extent that wages 'or earnings 'are exemp} under any applicable law exempting wages or earnings from legal process or claims. (k) lf no basic loss benefits have been paid, an arbitration proceeding pursuant to subdivision (h) for basic loss benefits may be commenced not later than one year after the victim suffers the loss. If basic loss benefits have been paid for such loss, an arbitration proceeding pursuant to subdivision (h ) for recovery of further benefits for such loss shall be commenced not later than one year after the last payment of benefits but in no event later than one year after death of the victim. The limitations periods prescribed in this Section shall govern all arbitration proceedinqs for benefits under this Chapter, notwithstanding any limitations prescribes elsewhere in the laws of this State. 12006. Interstate basis for insurance. (a) The insurance required by this Chapter applies whenever an insured suffers personal injury occurring within the United States of America its territories or possessions, or Canada. ' (b) An insurance policy which purports to provide insurance or is soM with the representation that it fulfills the requirements of insurance as required by this Chapter is deemed to include all coverage required by this Chapter except to the extent that such coverage has been deleted or mode'ed in accordance with this Chapter. (c) Every insurer authorized to transact the business of providing insurance under this Chapter shall submit to the Commissioner of lnsurance as a condition flits continued transaction of such business within this State, a ~t~claration that its motor vehicle insurance policies, providing protection against bodily injury liability, and issued with respect to any motor vehicle registered in the United States of America, its territories or possessions, or Canada, shall be deemed to provide the insurance required by this Chapter and to satisfy the requirements of the motor vehicle financial responsibility laws of this State when any insured vehicle is operated in this State. Any non-admitted insurer may file such a form. Such a declaration does not obligate the insurer to provide uninsured motorist coverage or any other coverage not necessary to establish financial responsibility under this Chapter and the motor vehicle financial responsibility laws of this State. (d) In the event a person who suffers personal injury occurring in this State is entitled to basic loss or other first-party benefits under the insurance requirements of more than one state, such person shall elect to recover under the laws of any one such state and only the benefits payable to such person under the insurance requirements of that state shall be due to such person. 1200Z Tort suits--preservation of right to sue for damages in certain circum- stances. (a) To the extent otherwise permitted by the tort law of this State, an accident victim (or the victim's legal representative) may recover for medical expenses, work loss or funeral expenses to the extent that the amounts of those losses exceed the weekly or aggregate limits on the amounts of such losses for which basic loss benefits are paid or payable or which wouM have been payable but for the exercise of a cost reduciy~ option authorized by Section 12011. (b) Any accident victim (or the legal representative of the victim) shall have no right to recover any damages in tort for medical expenses or work loss for which basic loss benefits are paid or payable or which wouM have been payable but for the exercise o! a cost reducing option authorized by Section 12011. Any accident vict. im who is ineligibl, e for basic loss benefits pursuant to Section 12005(b) has no rigl;t to recover any damages in tort for medical expenses or work loss for which such person would have been eligible for basic loss benefits had he or she not been disqual~'ed by Section 12005(b). Work loss benefits of SO% of the work loss (after G88 deduction of all federal and state taxes) suffered are the benefits recoverable for all of such work loss and no work loss for which such benefits have been paid or are payable shall be recoverable. (c) No person shall recover non-economic loss for personal injury unless the injury to the victim giving rise to such non-economic loss: (1) results in death, (2) consists in whole or in part of a serious and permanent disfigurement, or (3) is an injury which is both serious and permanent within a reasonable degree of medical probability. For purposes of this sub- paragraph (3), an injury is "serious" only if it has a substantial bearing on the injured person 'S ability to resume substantially all of his or her normal activities and life style and is "permanent" only if its effects cannot be eliminated by further time for recovery or by further medical treatment and care, including surgery. (d) Nothing in this Section 12007 sboll limit the right of any person to bring a tort action against.. (1) a person involved in a motor vehicle accident while voluntarily engaged in the use or occupancy of a motor vehicle known to him or her to be stolen or to be operated without the permission of its owner,. ' (2) a person engaged in the use of a motor vehicle with respect to which no insurance has been provided in accordance with Section 12002 if such person wouM have been an insured under a policy of insurance constituting insurance for that vehicle had the owner of such vehicle oeen the named insured under such a policy,. (3) a person who intentionally attempted to cause harm in a motor vehicle accident; (4) a person engaged in the use of a motorized vehicle with three or fewer load bearing wheels; (5) a person who, as a result of committing any one ode the following offenses, for which offense that person was convicted, caused harm in a motor vehicle accident. . (i) any felony,. (ii) Vehicle Code Sections 20001 or 2000£ (hit and run driving),. (iii) Vehicle Code Sections 23152 or 23153 (driving under the influence of alcohol or other controlled substances). (6) the owner of any vehicle for which insurance has not been provided in accordance with Section 12002 if such owner is legally responsible for the conduct of some other person engaged in the use of such vehicle regardles~ of whether the person so engaged is protected by the limitations ~n recovery contained in subdivisions (a), (b) and (c) of this Section;for purposes of this subdivision (d) the term "owner" does not exclude the United States of America. (e) The provisions of subdivisions (a), (b) and (c) ~of this Section do not apply in those instances where the person suffering personal injury is a person engaged in the use or occupancy of a motorized vehicle with three or fewer load bearing wheels, unless such person had failed to comply with iaml obligation to maintain insurance with respect to the use of such motorized vehicle imposed by the laws of this State. (f) Nothing in this Section shall authorize or prohibit the recovery of punitive or exemplary damages from any person whose conduct in the use of a motor vehicle which causes personal injury warrants such an award under the laws of this State, but such punitive or exemplary damages shall not be paid or reimbursed by any insurer. 12008. Subrogation. No insurer shall have a lien on any recovery in tort by judgment, settlement or otherwise, or any right to recover from any person for ibasic loss benefits, whe't'her suit has been filed or settlement has been reached without suit, except in those instances where a claimant is entitled to recover in tort for economic loss with respect to which basic loss benefits have been paid or are payable. Nothing in this Section shall prohibit any insurer from obtaining subrogation from any person who was convicted of a violation of Vehicle Code Section 23152 or Section 23153 (driving under the influence of alcohol or any COntrolled substance). Any subrogation recovery obtained by an insurer pursuant to thepreceding sentence shall be first applied to reimburse the insured for any deductible amounts on any coverage borne by the insured with respect to the losg 12009. Amount of work loss. (a) In computing the amount of work loss of an accident victim who is disabled from working as a result of personal injury, it shall be presumed, absent a contrary showing, that such accident victim 'S income but for such disability during a given period prior to the victim 'S death wouM have been the product of (1) the number of weeks in that period the victim probably wouM have worked had the victim not been disabled, and (2) the victim's ''probable weekly income if employed" as determined pursuant to this Section. In no event shall any work loss be computed fqr any period in which the victim probably wouM not have worked even if not disabled (b) For purposes of subdivision (a) (2) of this Section, a victim's "probable weekly income if employed" shall be determined as ]bllows: (1) If a victim was regularly employed or self-employed or had been so emplogied in the prior three months at the time of, the accident the victim's '`probable weekly income if employed" shall be tie victim's pro'bable annual income divided by 52. The victim 's probable annual income shall be the greater of. (i) twelve times the monthl~l gross income earned by the victim from work in the month preceding the monthin which the accident ~sulting in personal injury occurred; or (ii) the average income earned by the victim during the two calendar years preceding the year in which that accident occurred. (2) Ifa victim was seasonally or irregularly employed as of the time of the accident causing personal injury, or had been unemployed for at least three 147 months but less than two years, the victim's "probable weekly income if employed"shall be the total gross income of the victim during the prior two years divided by the number of weeks in which the victim worked during that period. (3) Ifa victim had not been remuneratively employed or self-employed within the two years next preceding the accident causing personal injury, the victim's ''probable weekly income if emplo~ted"shall be presumed to be zero, provided that the victim may rebut the presumption b~l proof that the victim would have been employed during the first year after the accident, and further provided, that the ''probable weekly income if employed" shall be presumed not to exceed 80% of the average weekly gross income of a production or non-supervisory worker in the private non-farm economy in the state in which the victim was domiciled during the year preceding the year in which the accident occurred (4) Ifa victim is disabled affom performing one or more but less than all duties of the victim's usual and customary occupation, the victim's work loss shall not include any portion of the victim's probable income but for the disability which the victim reasonably could earn despite the disability. However, if it is more reasonable for the victim to engage in available substitute work, then this limitation shall not apply, and the work loss shall instead be reduced with respect to the substitute work as provided in Section 12001(18). 12010. Source of benefits; net loss. (a) Where an accident victim is entitled to benefits under any federal or state workers'compensation law fot any medical expense incurred because of personal injury or to have his or her employer bear such expense connected with his or her employment without regard to the employer's fault, basic loss benefits shall not be payable for such medical expenses except to the extent that the workers' compensation benefits and employer payments fail to provide for payment of reasonable charges actually incurred for products, services, or accommodations for which basic loss benefits SWuM otherwise be payable. Only those medical expenses actually paid or reimbursed by basic loss benefits shall be considered in determining whether the aggregate limit on payment of basic loss benefits for medical expenses has been reached. (b) All benefits paid or payable under any state or federal workers' compen- sation law or any state or federal occupational or non-occupational disability law (including Social Security) on account of disability produced by personal injury shall be deducted from the basic loss benefits otherwise pa~lable for work loss during the same period on account of that same disability, and no basic loss benefits for work loss shall l~ payable if such other benefits payable for the same period equal or exceed the benefits otherwise payable for work loss during that period. 12011. Options to reducelpremium costs. (a) Insurers may offer modified forms of the coverages required by Section 1200~ which enable purchaSers of insurance to reduce their premium costs by eliminating unwanted, unnecessary or duplicate insurance coverage. Examples of such modified forms of coverage include, but are not limited to, provisions that those insured under the polic~ (i) wouM limit or forego required loss benefits which wouM duplicate benefi'ts available under other insurance or income continuation plans, (ii) woul~l limit or forego required loss benefi'ts for medical care which would be provided without charge pursuant to any agreement with a Health Maintenance Orgam~ation or similar entity, (iii) would limit or forego (through deductibles or waiting periods) required loss benefits for smaller losses (provided that the deductible for medical expense shall not exceed $2,000 per person and all policies shall provide at least $5,000 per person in coverage for medical expense in excess of the stated deductible), (iv) wouM limit or forego the weekly required loss benefits payable for work loss to reflect the lack of any earnings by one or more insureds or earnings insufficient to require payment of the maximum benefit amounts specified in Section 12003(b), or (v) would accept medical and medical rehabilitation services in kind from providers of such services engaged by the insurer in lieu of medical expense benefits for such services. The insurer shall provide an appropriate agreed reduction in premium for any policy containing any such modified form of coverage. (b) A ny reduction in or modification of the coverage for required loss benefits shall apply only to insureds under the policy and not to other victims for whom the policy constitutes insurance for required loss benefits. (c) Any agreement to accept such a modified form of coverage must be made in writing by a named insured under the policy. Any such agreement by any named insured shall be binding on every insured to whom the policy applies while the policy is in force, and shall continue to be so binding with respect to any continuation or renewal of the policy or with respect to any other policy which extends, changes, supersedes, or replaces the policy issued to the same named insured by the same insurer, or withrespect to reinstatement of the policy within 30 days of any lapse thereof (d) No such modified coverage shall be offered without giving the named insured the option to purchase the unmodified coverages as specified in Section 1200~. Any agreement to accept modified coverage (1) shall recite that it provides for a coverage modification, (2) shall describe the benefit reductions resulting fwm that modification, (3) shall state that the named insured need not accept that modification to the coverage and may purchase unmodified coverage without the premium reduction given for such modification, and (4) shall be signed by a named insured. At or befqre the time a named insured enters into such an agreement, the insured shall be given written notice indicating the approximate amount or magnitude of the premium reduction provided on account of such modification. Any agreement to modify coverage complying with this Section shalI be conclusively deemed to be valid and binding unless set aside for fraud or mutual mistake. ~ (e) At the request of any insurer desiring to ~offer a particular form of modified coverage, the Commissionet shall provide a ruling on whether a specified form of agreement satisfies the requirements of this Section and, if not, the respects in 148 which it fails to do so. Nothing herein shall prevent an insurer from using a form not subject to such a ruling. 12012. Supervision--penalties. (aJ The Commissioner shall regularly and systematically monitor the opera- tion of every insurer providing the insurance required under Section 12002 of this Chapter to assure that such insurers are in compliance with this Chapter. (b) If as a result of such review, the Commissioner finds that an insurer is in violation of this Chapter, with such frequency that the conduct of the insurer in violation of the Chapter amounts to a regular and ongoing business practice, he or she may, after hearing, assess a fine against such insurer in an amount not less than $1,000 nor more than $50,000, unless he or she finds that the insurer reasonably believed that its conduct was lawful. (c) If the Commissioner finds that a regular and ongoing business practice violative of this Chapter was (1) committed by an insurer with knowledge on the part of managerial personnel of its illegality or with deliberate and reckless disregard for whether it was legal and (2) designed specifically to deny benefi'ts to eligible victims under this Chapter, he or she mag after hearing, suspend or revoke the insurer's license to do business in this State. (d) Except as set forth in Section 12005(h) (2), no insurer to which the penalty provisions of this Section apply, nor any officer, director, employee, or agent thereof, shall be subject topunitive or exemplar!t damages for any claim arising out of allegedly improper handling of any application for basic loss benefits, or any act or omission of such insurer, or anal officer, director, employee, or agent thereof, in adjusting any claim for such behalf_its. 12013. ?rocedures for Liability Claims and Tort Actions. (a) No accident victim shall make, directly or through any representative, any demand to settle any claim for damages for personal injury on any insurer which includes any amount for non-economic loss unless such accident victim or a representative ~'rst complies with the following procedures. A victim desiring to make such a demand shall offer in writing to tt~e insurer to which the demand will be addressed an opportunity to conduct an independent medical examination of the victim. Within fifteen days of receipt of such offer to conduct an independent medical examination, the insurer shal[either (i) designate in writing a date, time and place for such examination or (i~J state in writing that it waives the opportunity to conduct such examination. The date designated for such examination shall be at least ten days but no later than thirty days aft_er the date of mailing to the accident victim (or legal representative) the written designation of the date, time and place for such examination. A demand to settle a claim for damages for personal injury which includes an amount for non-economic loss may be made (i) at any time after receipt from the insurer of a notice that it waives the opportunity to conduct such examination or (iii fifteen days after such examination. An insurer shall have no duty to consider any settlement demand made in violation of this Section, and any settlement demand made in violation of this Section shall not be admissible in any action for any purpose. (b) If any person who suffered personalinjury brings an action to recover non-economic losses arising out of that accident, such person may neither plead nor prove the amount of any losses for which basic loss benqfits were paid or are payable in his or her action to recover non-economic losses. The court shall instruct the jury that, in arriving at a verdict as to the amount of damages for non-economic losses recoverable by such a person, the jury shall not speculate as to the amount of any medical expenses or other losses not proven in the action or consider such expenses or other losses. (c) Pretrial threshold determination. In any action where the defendant contends that the plaintifsUs injury does not meet the requirements ~f Section 12007(c), either party may seek summary judgment on that issue. If such a motion is made, the court must determine at least 30 da~s before the date set for trial whether there is any material issue of fact as to wt~ether those requirements have been met and, if not, render summary judgment in accordance with the undisputed facts. Jf the facts regarding the nature of the injury or disfigurement and its effect on the plaintiff are undisputed, the question of whether those effects render the injury or disfigurement serious and permanent, within the meaning of Section 12007(c), is a question of law to be decided by the court. If the court renders summary judgment on this issue and finds that the party against whom such summary judgment is rendered had no reasonable basis for its position as to whether the requirements of Section 12007(c) had been met, the court shall assess against such party the reasonable costs and attorneys'fees (based upon actual time expended) incurred or expended by the other party to obtain a determination on that issue. (d) Bifurcated jury trial of threshold determination. In anal action tried to a jury where the defendant contends that plaintif~s injury does not meet the requirements of Section 12007(c) but the defendant concedes or the court determines that' there is a material issue of fact as to whether those requirements have been met, then, upon motion of the defendant, that issue shall be separately tried and no other evidence as to the plaintifjvs damages shall be received until that issue has been resolved. Aftqr resolution of that issue, the amount of the plaintiffls damages may be tried before the same jury or a different jury, as the court may in its discretion decide. (e) Until it has been determined in such action that aplaintiff has met the requirements of Section 12007(c), a liability insurer is not obligated to consider or settle any claim of that plaintiff for non-economic losses unless it has admitted to such plaintiff or to the court that the plaintiff has met those requirements, provided that nothing in this subdivision shall qffect the obligation to consider or settle any claim after such determination has been made. (f) Non-joinder of insurers. No motor vehicle liability insurer shall be joined as a party defendant in an action to determine the insured's liability. 12014. Discovery of facts about an injured person. (a) Every employer shall, ifa request is made by an insurer providing basic loss benefits under this Chapter against whom a claim has been made, furnish G88 forthwith, in a form approved by the Department of lnsurance, a sworn statement of the earnings since the time of the personal injury and for a reasonable period before the injury of the person upon whose injury the claim is based. The sworn statement shall state: "Under penalty of perjury I declare that I have read the foregoing and the facts stated are true to the best of my knowledge and belief" To facilitate the insurer's investigation of these matters, every person claiming basic loss benefits shall, upon request by the insurer, execute a written authorization for release of such information. (b) Every physician, hospital, clinic, or other medical institution providing (before or after a personal injury upon which a claim for basic loss benefits is based) any products, services, or accommodations in relation to that or any other injury, or in relation to a condition claimed to be connected with that or any other injury, shall, if requested to do so by the insurer against whom the claim has been made, furnisha written report of the history, condition, prognosis, disability, dates of disability, treatment, and dates and costs of such treatment of the injured person, together with a sworn statement that the treatment or services rendered were reasonable and necessary with respect to the injury sustained and identify- ing which portion of the expenses for said treatment or services was incurred as a result of such injury and whichportion of any disability resulted from such injury, and produce forthwith and permit the inspection and copying of his~her or its records regarding such history, condition, disability, dates of disability, treatment, and dates and costs of treatment. The sworn statement shall state.. "Under penalty of pe~ury I declare that I have read the fo~regoing and the facts stated are true to the best of my knowledge and belief' No cause of action for violation of physician~patient privilege shall arise against any physician, hospi- tal, clinic, or other medical institution complying with the provisions of this Section. The person requesting such records and saidsworn statement shall pay all reasonable costs connected therewith, To facilitate the insurer's investigation o_f these matters, every person claiming basic loss benefits shall, upon request by the insurer, execute a written authorization for release of such information. (c) In tbe event of any dispute regarding an insurer's right to discovery offacts about an injured person's earnings or about his or her history, condition, prognosis, disability, dates of disability, treatment, and dates and costs of such treatment, the insurer may petition a court of competent jurisdiction to enter an order compelling such discovery, which shall be granted where good cause is shown. Notice of such a motion shall be given to all persons having an interest and the petition shall be heard as expeditiously as possible. A ny order shall specify the time, place, manner, conditions, and scope of the discovery. Discovery may be denied or may be permitted only upon conditions where necessary to protect against unwarranted annoyance or embarrassment, oppression, or as justice requires. The prevailing party on such a petition shall be awarded payment of its reasonable costs and expenses of the proceeding, including reasonable fees for the appearance of attorneys at the proceedings, unless the court determines that the other party's making of or opposition to the motion was substantially justified. (d) The victim shall be furnished, upon request, a copy of all information obtained by the insurer under the provisions of this Section, and shall pay a reasonable charge, if required by the insurer. (e) Notice to an insurer of the existence of a claim shall not be unreasonably withheld by a victim. (f) Where an insurer has requested of a claimant that he/she submit himself/ herself to an independent medical examination, said claimant must present himself/herself for such examination at a reasonable location and within a reasonable tithe'after said request is made. In the event the claimant refuses to comply with an insurer's reasonable request for a medical examination, the insurer may deny all future claims fqr first-party benefi'ts for personal injury (including, but not limited to, basic lo3s benef'ts) under any policy of motor vehicle insurance made by or on behalf of the claimant with respect to lhe same accident. (g) Exchange of information. Where a third-party liability claim has been made against an insurer, or where the insurer has reason to believe that such a claim will be made, the insurer, upon request, may obtain all pertinent informa- tion submitted to any insurer obligated to pay first-party benefits to the claimant under any ~olicy of motor vehicle insurance. 12015. Stacking of coverages prohibiteet. If an insured or named insured is protected by any type of insurance pursuant to ~his Chapter or any type of motor vehicle insurance policy for liability, uninsured motorist, basic loss benef'ts, or any other coverage, the insurance shall provide that any insured or named insured is protected only to the extent of the coverage provided on the vehicle involved in the accident; however, if none of the vehicles covered by the policies applicable to the insured or nambd insuied is involved in the accident, coverage is available (if provided by the policy) only to the extent of coverage on any one of the vehicles (to be selected by the insured) with applicable coverage. Coverage on any other vehicles shall not be added to or stacked upon that coverage. The foregoing provisions of this Section shall not apply to the extent that any policy of insurance expressly declares that 4t applies to losses in excess of those covered under other policies of insurance but the coverage provided by such insurance shall not exceed that specified by its terms. Forpurposes of this Section, the meaning of the term "insurance"is not restricted to t/~at specified in Section 12001(5). 12016. No penalties for use of basic loss benefits. No insurer shall cancel, refuse to renew, or increase the rate charged for any insurance policy solely on account of any prior payment of basic loss benefits to its insured or applicant. 12017. Uninsured and Underinsured Motorist Insurance. In any policy affording insurance required by law to be purchased or offered providing for payment of sums which a person insured under that policy wouM be legally entitled to recover from the owner or operator of an uninsured or underinsured motorized vehicle, the amount which such person would be legally G88 entitled to recover from such owner or operator shall be determined in accordance with subdivisions (a) and (b) of Section 12007as ~f such vehicle were a motor vehicle covered by applicable insurance, except thatiif the victim injured by such uninsured or underinsured motor vehicle wouM be exempt from the operation of subdivisions (a) and (b) of Section 12007pursuant ito subdivision (d) of Section 12007, then subdivisions (a) and (b) of Section 1£007 shall be disregarded in determining the amount recoverable. In no event shdll the benefits payable under uninsured or underinsured motorist coverage required by law to be purchased or offered include any amounts which the insured would be entitled to recover as punitive or exemplary damages or any amounts for lwhich the owner or operator of such vehicle wouM not have been liable had such Owner or operator maintained insurance in accordance with this Chapter. Nothing in the foregoing provisions of this Section shall prevent any insurer from agreeing to provide coverage for losses whose payment is excluded by those provisions but such coverage may be provided only pursuant to an express agreement in writing. 12018. Initial premium charges. (a) During the first two years following the effective date of the California Guaranteed Protection Plan, no insurer may establish or use statewide average premium rates for the New Insurance Package which, as of the effective date of such premium rates, are more than 80% of the statewide average premium rates for the OM Insurance Package. (b) For purposes of this Section, the statewide average premium rates for the "OM Insurance Package'' shall consist of the sum of the statewide average premium rates under that insurer's rating system in effebt for new business issued on the day this Chapter is adopted for each of the following coverages: (1) bodily injury liability coverage with limits of liability for any one accident of $15,000 for all damages arising fro_m bodily injuries to any one person and $30,O00 for all damages arising from bodily injuries to two or more persons; (2) uninsured motorist coverage with similar limits; and (3) primartj automobile medical payments coverage with a limit of liability of $5,000 for all medical payments (without deductible, coinsurance or co-payments) by any one person as a result of any one accident irrespective of other medical coverage. (c) For purposes of this Section, statewide average ~remium rates for the "New Insurance Package" shall consist of the sum of the statewide average premium rates for the insurer for the following coverages: (1)bodily injury liability coverage and uninsured motorist coverage with the same limits as in the Old Insurance Package; and 2~) coverage for required loss benefits pursuant to Section 12003. The premium charged, either before or after adoption of this Chapter, for coverage for property damage liability shall be disregarded for~ purposes of this Section, despite any requirement that such coverage be included in the insurance policy issued. (e) The California Automobile Assigned t?isk Planishall adopt a rating system providing premium reductions from tT~e rates provided by it as of the date this Chapter is adopted comparablk to those required by this Chapter for the rating systems established by or on behalf of individual insurers. 0c) TheCommissioneroflnsuranceshallhaveexclUsivejurisdiction, subjectto judicial review, to administer and enforce this SectiO_n. The Commissioner may require insurers to provide appropriate information about their rating s~stems in effect at the time this Chapter is adopted and/or at,any time within two years after it takes effect. If the Commissioner finds, after appropriate hearings, that any insurer has failbd to comply with this Section, he or she may order such insurer to adopt rates in compliance with this Section and to provide an appropriate remedy for any charges in excess of those permitted by this Section. 12019. Attorneys' Contingency Fees. (a) An attorney shall not contract for or collect a contingency fee for representing any accident victim as defined in subdivision (1) of Section 12001 (or legal representative of any accident victim) seeking basic loss benefits and/or damages in connection with any arbitration proceeding or civil action in excess of the following limits: (1) Fifteen percent of any basic loss benefits recovered, regardless of amount,. (2) Thirty-three andone-third percent of the f~rst fifty thousand dollars ($50,000) of damages recovered other than bi, sic loss benefits; (3) Twenty-five percent of the next fifty thousand dollars ($5~,000) of damages recovered other than basic loss benefits; (4) F~ ifteqn percent of any amount by which the amount of damages recovered other than basic loss benefits exceeds one hundred thousand dollars ($100,000). (b) These limitations shall apply regardless of whe#~er the recovery is by settlement, arbitration, orjudgmen~ or whether the person for whom the recovery is made is a responsible adult, an infant or a person of unsound mind. . (c) If periodic payments are awarded to the plaintiff a total present value shall be placed on these payments based upon the projec-tbd life expectancy ~f the plainOff and this amount shall be included in computing the total award from which attorney's fees are calculated under this Section. de(dd) For purposes of this Section, "recovered" means:the net sum recovered after ucting any disbursements or costs in connection with prosecution or settlement of the claim. Costs of medical care incurred by the Plaintiff and the attorney's office overhead costs or charges are not deductible disbursements or costs for such purpose. 12020. Severability. If any provision of this Chapter or the applicatioa thereof to any person or circumstance is held invalid, the invalidity shall not~ affect other provisions or applications of the Chapter which can be given effect without the invalid provision or application, and to this end the prov~iions of this Chapter are declared severable, provided, however, that invalidity of the provisions of Section 12007 shall render this Chapter inoperative. 12021. Effective date. 149 (a) This Chapter shall take effect on July 1, 1,989, shall be effective as to personal injury occurring on or after July 1, 1980, and shall govern pohh'es of insurance in effect on and after that date. [b) Effective on July 1, 1989, any insurance policy insuring a motor vehicle registeredin this State and sufficient to satisfy the financial responsibility requirements of the laws of this ~ate in effect at the time this Chapter is adopted shall be deemed amended to provide the coverages necessary fqr such policy to constitute insurance pursuat?t to this Chapter. The insurer shall determine any premium change resultingfwm such amendment for the remaining portion of the policy period and shall refund any amount due to the policyholder within 90 days after that date. However, if,: prior to the expiration of such 90 day period, any payment becomes due under any premium payment plan or any named insured requests that the policy be altered, renewed, extended, or replaced in a way which calls for an increased premiUm, any amount due to the policyholder as a result of the amendment may be credited against any such premium payment or increased premium rather than being refunded. SECTION 5. Section 11~22 of the Insurance Code is amended to read as follows: 11622. Required Coverage. Such plan shall require the issuance of a policy affording coverage for required loss benefit~ and coverage in the amount of fifteen thousand dollars ($15,000) for bodily'injury to or death of each person as a result of any one accident and, subject to said limit as to one person, the amount of thirty thousand dollars ($30,000) for bodily injury to or death of all persons as a result of any one accident, and the amount of five thousand dollars ($5,000) for damage to property of others as a result of any one accident, or in such minimum amounts as are necessary to rovide exemption from the security requirements of Section 16023 of the Vehicle ode or for which proof of ability to respond in damages or adequate protection against liability is otherwise !required bylaw, but shall not require the issuance of a policy affording coverage ~n excess of said amounts. SECTION 6. Section 11624 of the Insurance Code is amended to add a new subdivision (f) as follows: 11624. Requirements of Plan. The Such plan shall contain: '('fi Provisions specifying what mode'ed forms of coverage, if any, shall be made available pursuant to Section 12011. ~ A~ (g) Such other provisions as may be necessary to carry out the purpose of this article. SECTION 7. Division 31 Article 5 of the Insurance Code is amended as follows: Article 5. Eurz.gu mc Frandulcnt C1a/r..a Investigation and Prosecution of Insurance Fraud 12990. Bureau of Fraudulent Claims. ~v~._.~ ~s ................ ~ dopartmcnt e ~'arcau mc Fraudulcnt o~.:_~ to There shall be a Burea~ of Fraudulent Claims which shall fall under the authority and supervision of the Commissioner of lnsurance. 12991. Investigation of IVraudulent Claims. (a) If by its own inquiries or as a result of complaints, the Bureau of Fraudulent Claims has reason to believe that a person has engaged in, or is engaging in, an act or practice ~ ;'lc, lares $cc~cn ~ that violates any criminal statute of this state relating to the presentatioa or preparation of fraudulent insurance [laims, the eomm~ioncr Commissioner in his or her discretion (1) may make such public or private investigations within or outside of this state as he or she deems necessary to determine whether any Person has violated or is about to violate any provision of Scz2cn ~ ~ t~ such criminal statute or to otherwise aid in the enforcement of this law, and (2) may publish information concerning any violation of this law. (b) For purposes of any investigation under this law, the commissioner Commissioner or any officer designated by him or her may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require t-he production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the cemmi~ioncr Commis- sioner deems relevant or material to the inquiry; ~s ~rcv~dcd by ~ ~rc;~zlc, n: mc Scctic, n 129~. . (c) If matter that the commiosioncr Commissioner seeks to obtain by request is located outside the state, the person so requested may make it available to the commissioner Commissioner or his or her representative to be examined at the place where it is located. The eommi~ioncr Commissioner may designate representatives including Officials of the state in which fee a matter is located, to inspect the matter on his~ or her behalf, and he or she may respond to similar requests from officials of other states. (d) Except as provideel in subdivision (e), the department's papers, docu- ments, reports or evidene~ relative to the subject of an investigation under this ;cc~c,n Section shall not be subject to public inspection for so long a period as the comm~ioncr Commissioner deems reasonably necessary to complete the inves- tigation, to protect the person investigated from unwarranted injury, or to serve the public interest. Furthermore, such papers, documents, reports or evidence shall not be subject to subpoena or subpoena duces tecum until opened for public inspection by the eomm~ioncr Commissioner, unless the cemmbaioncr Commis- sioner otherwise consents or, after notice to the eomm~ioncr Commissioner and a hearing, the superior court determines that the public interest in any angcAng on-going investigation by! the eomm~ioncr Commissioner would not be unnec- essarily jeopardized by ob~yance of such a subpoena or a subpoena duces tecum. (e) The Bureau of Fraudulent Claims shall furnish all papers, documents, reports, complaints, or other facts or evidence to any police, sheriff or other law enforcement agency, when so requested, and will assist and cooperate with such law enforcement agencies. 12992. Reporting of Fraudulent Claims. 150 (a) Any company licensed to write insurance in this state which believes that a fraudulent claim is being made shall, within 60 days after determination by the insurer that the claim appears to be a fraudulent claim, send to the Bureau of Fraudulent Claims, on a form prescribed by the department, the information requested by the form and in such additional information relative to the factual circumstances of the claim and the parties claiming loss or damages as the commissioncr Commissioner may require. The Bureau of Fraudulent Claims shall review each report and undertake such further investigation as it deems necessary and proper to determine the validity of the allegations. Whenever the :igr.¢r Commissioner is satisfied that fraud, deceit, or intentional misrepresenta- tion of any kind has been committed in the submission of the claim, he or she shall report any such violations of law to the insurer, to the appropriate licensing agency and to the district attorney of the county in which such offenses were committed a~ prg;'idcd by the ~rc;'L~cn~ of £ccticn3 12~ a-nd I~30. If the comm~ioncr Commissioner is satisfied that fraud, deceit, or intentional misrepresentation has not been committed, he or she shall report such determination to the insurer. If prosecution by the district attorney concerned is not begun within 60 days of the receipt of the eommissioncr's Commissioner's report, the district attorney shall inform the commissioner Commissioner and the insurer as to the reasons for the lack of prosecution regarding the reported violations. (b) This acctlc, n Section shall not require an insurer to submit to the bureau the information specified in.subdivision (a) in either of the following: (1) The insurer's initial investigation indicated a potentially fraudulent claim but which further investigation revealed not to be fraudulent. (2) The insurer and the claimant have reached an agreement as to the amount of the claim and the insurer does not have reasonable grounds to believe the claim to be fraudulent. (c) Nothing contained in this article. Article shall relieve an insurer of its existing obligations to also report suspected violations of law to appropriate local law enforcement agencies. (d) Any police, sheriff or other law enforcement agency shall furnish all papers, documents, reports, complaints, or other facts or evidenCe to the Bureau of Fraudulent Claims, when so requested, and shall otherwise assist and cooperate with the bureau. 12993. Immunity from Liability for Reporting. No insurer, or the employees or agents of any insurer, shall be subject to civil liability for libel, slander or any other relevant tort cause of action by virtue oft-he filing of reports, without malice, or furnishing other information, without malice, required by this artlclc Article or required by the commissioner Commissioner under the authority granted in this article Article. 12994. Prosecution of Fraudulent Claims. Nothing contained in this arffc!c Article shall preempt the authority of local law enforcement agencies to investigate and prosecute suspected violations of law nor shall it relieve them of their duty to do so. However, if the district attorney informs the Commissioner, pursuant to Section 129~2 that he or she chooses not to prosecute a violation reported to him or her by the Commissioner, then the Commissioner may direct the Bureau of Fraudulent Claims to prosecute such violation. 12995. Funding of Bureau. The costs of administration and operation of the Bureau of Fraudulent Claims shall be borne by all of the insurers admitted to transact insurance in this state. The commissioner Commissioner shall divide such costs among all such companies, assessing each such company an identical amount adequate to provide the total cost f~ of each fiscal year of the operation of the~urcaa Bureau; provided, however, the assessment for each company shall not exceed one thousand dollars ($I,000) in each fiscal year. All moneys received by the commissioner imurcra Commissioner pursuant to this acc~i~= Section shall be transmitted to the State Treasurer to be deposited in the State Treasury to the credit of the Insurance Commissioner's Begulator!t Trust Fund, which shall be created for this purpose. All moneys ',;-,~ck m-e dc~c,r, ltcd in One such fund after ~ by received from the commissioner ,c,m inaurcra pursuant to this section are hereby appropriated to the department and are to be exclusively used for the support of the Bureau of Fraudulent Claims. T~ t-he extent tone assessments agcAn~'~ imurcra ~adc to t4~is :~zr. a~e no~ ~ufSclcnt to fund One enfi~ op~a{4~ mc the ~urcau, ctkcr mcncy appropriated to t4~e dcpartmcnt, i~ a-,-ai.a~.c,~-'~-~ may be ugcd, in One eommisaioncr's dlacrctlc, n, to hind tka;c c, Fcra~icns n~ ~ by ~he memo. The total budget of the ~urcaa Bureau shall be as determined annually in the Budget Act, which may make additional appropriations to the Bureau if the maximum assessment permitted by law has already been levied on insurers. SECTION 8. Section 12924.5 is added to the Insurance Code as follows: 12924.5. Consumers' rights to present evidence. (a) In any proceeding before the commissioner, any person or organization may present written or oral evidence, subject to such rules and regulations that may oe established by the commissioner, provided that nothing herein shall create a right of any person or organization to intervene in any proceeding. (b) Any person or organization, whether a party, intervenor, witness or other participant in any proceeding before the commissioner, shall hear its own costs and attorney's fe_es. No state funds or award against any other person or organization shall be used to reimburse the costs or attorney 's fees incurred by any party or participant in any such proceeding. SECTION 9. Secticr, s 790.03.1 and 790.03.2 of the Insurance Code are added as follows: 790.03.1. Procedur,,':, t, Resolve Claims under Policies of Liability lnsurance. a An cla~man' /,v assubm~tted ( ) y ' , ~, ' a claim to any insurer under any policy of liability insurane~ :,,~, ~,~ .~t any~ time after submitting the claim, serve upon the insurer a Demand to bie3'olve Claim. (b) A Demand to Resolve Claim shall be in writing, shall state that it is a Demand to Resolve Claim under Insurance Code Section 790.03.1, and shall set forth a specific dollar amount within poli~ limits which the claimant offers to G88 accept in full settlement of the claim of the claimant against the person or persons insured under the policy of liability insurance. (c) If the insurer, within thirty days of receipt of a Demand to Resolve Claim, tenders the amount specified therein to the claimant, the claimant shall have no right to maintain a private civil action for violation of Section 790.03(h) with respect to the claim. id) If the insurer, within thirty days of receipt of a Demand to Resolve Claim, reaches a written agreement with the claimant in settlement of the claim, the claimant shall have no right to maintain a private civil action for violation of Section 790.03(h) with respect to the claim. (e) If the insurer, within thirty days of receipt of a Demand to Resolve Claim, offers in writing to submit the claim to binding arbitration under Section 790.00.2, the claimant shall have no right to maintain a private civil action for violation of Section 79t2.03(h) with respect to the claim. This subdividon shall apply whether or not the claimant accepts the offer to submit the claim to binding arbitration. if) The time limits set forth in subdivisions (c), id) and (e) of this Section shall be increased to ninety days if the Demand to Resolve Claim is served prior to sixty days after the date the claim was first submitted to the insurer. (g) No claimant may maintain a private civil action for violation of Section 790.00(h) which relates in any way to any claim made under any policy of liability insurance unless that claimant has, at least ninety days prior to the commencement of the action, served upon the insurer a Demand to Resolve Claim. Unless there is a dispute as to whether an insurer received a Demand to Resolve Claim or a dispute as to whether an insurer offered to submit the claim to binding arbitration, the fact that an insurer received-a Demand to Resolve Claim and the manner in which an insurer responded to any Demand to Resolve Claim shall not be admissible in evidence in any private civil action to prove a violation of Section 790.00(h). ih) Nothing in this Section shall be deemed to expand or limit in any way the right of any person to maintain a private civil action for violation of Section 790.00(h) with respect to any first-party claim made under any policy which provides insurance to that person. 79t2.00.2 Procedures for Binding Arbitration of Claims Under Policies of Liability Insurance. ia) A n insurer who receives a Demand to Resolve Claim from a claimant under any policy of liability insurance may, within the time allowed by Section 790.03.1, serve on the claimant an offer to submit the claim to binding arbitration under this Section. (b) The claimant shall, within thirty days after receipt of such offer to submit the claim to binding arbitration, serve on the insurer a notice either accepting or rejecting the offer to submit the claim to binding arbitration. Failure by the claimant to respond within the time specified shall be deemed to constitute a rejection of the offer to submit the claim to binding arbitration. (c) No later than twenty calendar days after the dat~ of service of a notice accepting an offer to submit a claim to binding arbitration, each party shall select a referee and shall serve upon the other party a notice designating the name, address and telephone number of said referee. id) Within thirty days after the service of the last notice designating a referee, the referees so designated shall meet and confer, in person or by telephone, an.d agree upon the appointment of a neutral arbitrator. If thcy fail to agree upon tl~e appointment of a neutral arbitrator within the time specified, any party may petition a superior court to designate an odd-numbered list bf ncutral arbitrators. The parties shall then either agree on a neutral arbitrator or shall select a neutral arbitrator from the list by the claimant fi'rst striking a name, the insurer then striking a name, and proceeding to strike names alternately until only one name remains. That person shall be the neutral arbitrator. The referees shall not participate in the arbitration proceeding after selection of the neutral arbitrator except to select another neutral arbitrator in the event the arbitrator selected cannot serve for any reason. (e) The neutral arbitrator so selected shall proceed to arbitrate the claim. Unless the parties agree in writing otherwise, the neutral arbitrator shall be informed ff the applicable policy limits but shall not be informed of settlement offers and demands, including the amount set forth in the Demand to Resolve Claim, until the initial award. The arbitration hearing shall commence within ninety days of the selection of the neutral arbitrator and the taking of evidence shall be concluded no later than thirty calendar days aftqr the date of commence- men~ regardless of the number of actual hearing days held. if) When an insurer makes an offer to arbitrate under Section 790.00,2(a) and the offe_r is accepted by the claimant, the insurer shall be deemed to have waived the right to assert a lack of coverage in the arbitration and as a basis for not paying any part or all of the final arbitration award. Nothing in this subdivision shall be deemed to impair or prejudice an insurer's right to seek a determination in any court of competent jurisdiction of its coverage obligations relative to its insured. (g) The arbitration proceeding, including any discovery pertaining thereto, shall be conducted in accordance with and be governed by Sections 1280 to 1288.2 of the Code of Civil Procedure except as specified in this Section. ih) Upon request of either side, a record shall be made of the arbitration hearing. ii) The neutral arbitrator shall issue an initial award in writing within thirty days after the conclusion of the taking of evidence. The amount of the initial award (exclusive of costs, expert witness fees and attorney's fees) shall not exceed the limit of the policy of insurance applicable to the claim. (j) The neutral arbitrator shall retain jurisdiction for thirty days after the issuance of the initial award to receive and determine a request for an award of attorney's fees and expert witness fees. (k) Within ten days after the issuance of an initial award, the claimant may submit to the neutral arbitrator and serve on the insurer a request for an award of G88 attorney's fees and expert witness fees. The insurer ~hall have ten days to submit to the neutral arbitrator and serve on the claimant its response to the request for attorney's fees and expert witness fees. The claimant shall be entitled to an award of reasonable attorney's fees and reasonable expert witness fees incurred after service of the Demand to Resolve Claim but before the commencement of the arbitration hearing only if the amount of the initial award exceeds the highest amount offered by the insurer to the claimant at ang time prior to the selection of the neutral arbitrator. The claimant shall be entitled to an award of reasonable attorney's fees and reasonable expert witness fees incurred after the commence- ment of the arbitration hearing only if the amount of the initial award exceeds the highest amount offered by the insurer to the clai~nant at any time prior to the commencement of the arbitration hearing. In no case shall the combined amount of attorney's fees and expert witness fees awarded exceed the amount of the initial award. : il) Within thirty days qfter the issuance of the initial award, the neutral arbitrator shall enter a final award, including any amount awarded for attorney's fees and expert witness fees. (m) The expenses and fees of the neutral arbitrator, together with other expenses incurred or approved bd the neutral arbitrator, not including attorney's fees or expert witness fees, shall be paid in all cases by the insurer. The claimant 'S referee 'S fees shall not exceed $250. in) Payment by an insurer of any arbitration award issued hereunder, or of a judgment confirming any such award, shall discharge any and all liability to the claimant of the person or persons insured under the policy of insurance under which the claim was made. (o) The parties may agree in writing on any alternative arbitration procedure allowable by law including, without limitation, different time requirements, conducting the proceeding before more than one ~eutral arbitrator, different provisions regarding costs and attorney's fees, or different procedures for selection of a neutral arbitrator or arbitrators. SECTION 10. Sections 679.70, 679.71 and 790.03(f) of the Insurance Code are reenacted as follows: 679.70. Application of chapter,, certain property and liability insurance,. exceptions. This chapter shall apply to policies of insuranCe, other than automobile insurance and workmen's compensation insurance, o*1 risks located or resident in this state which are issued and take effect or which ars renewed after the effective date of this chapter and which insure any of the following contingencies: ia) Loss of or damage to real property which is used predominantly for residential purposes. (b) Loss of or damage to personal property in which natural persons resident in specifically described real property of the kind described in subdivision ia) have an insurable interest. (c) Legal liability of a natural person or persons for loss of, damage to, or injury to, persons or property. 679.71. Failure or refusal to accept application far, issue or cancel insurance based on marital status, sex, race, color, religion, national origin or ancestry. No admitted insurer, licensed to issue any policy o[ insurance covered by this chapter, shall fail or refuse to accept an application for, or to issue a policy to an applicant for, such insurance (unless such insurance is to be issued to the applicant by another insurer under the same management and control), or cancel such insurance, under conditions less favorable to the insured than in other comparable cases, except for reasons applicable alike to persons Of every marital status, sex, race, color, religion, national origin, or ancestry; nor shall sex, race, color, religion, national origin, or ancestry of itself constitute a condition or risk for which a higher rate, premium, or charge may be required of the insured for such insurance. 790.03. Prohibited acts. The following are hereby defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance. if) Making or permitting any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract. This subdivision shall be interpreted, for any contract of ordinary life insurance or individual life annuity applied for and issued on Or after January 1, 1981, to require differentials based upon the sex of the individl~al insured or annuitant in the rates or dividends or benefits, or any combination thereof. This requirement is satisfied if such differentials are substantially supl~orted by valid pertinent data segregated by sex, including, but not necessarily limited to, mortality data segregated by sex. However, for any contract of ordinary life insurance or individual life annuity applied for and issued on or after January 1,1981, but before the compliance date, in lieu of such differentials based on data segregated bYsex, rates Or dividends or benefits, or any combination thereof, for ordinary life insurance or individual life annuity on a female life may be calculated as follows: ia) according to an age not less than three years nor more than six years younger than the actual age of the female insured or female annuitant, in the case of a contract of ordinary life insurance with a face value greater than five thousand dOllars ($5,000) or a contract of individual life annuity; and (b) according to an age not more than six years younger than the actual age of the female insured, in the case of a contract of ordinary life insurance with a face value of five thousand dollars ($5,000) or less. "Compliance date" as used in this paragraph shall mean the date or dates established as the operative date or dates by future amendments to this code directing and authorizing life insurers to use a mortalityitable containing mortality data segregated by sex for the calculation of adjusted premiums and present values for nonforfeiture benefits and valuation reserves as specified in Sections 10163.5 and 10489.2 or successor sections. 151 Notwithstanding the provisions of this subdivision, sex based differentials in rates or dividends or benefits, or any combination thereof, shall not be required for (1) any contract of life insurastce or life annuity issued pursuant to arrangements which may be considered terms, conditions, or privileges of employment as such terms are used in Title VII of fine Civil Rights Act of 1964, as amended, and (2) tax sheltered annuities for employees of public schools or of tax exempt organizations described in Section 501 (e) (3~ of the Internal Revenue Code. SECTION 11. Section 400~.26 of the Vehicle Code is added as follows: 40000.26. Misdemeanors A violation of the following provision is a misdemeanor, and notan infraction: Section 16050 (concerning a second or subsequent conviction of an offense relating to proof of financial responsfbility by every driver or employer involved in an accident). ' SECTION 12. Section 16050 of the Vehicle Code is amended as follows: 16050. Establishing Proof of Financial Responsibility. (a) In order to establish proof of financial responsibility every driver or employer involved in an accident and required to report such accident by Section 16000 shall establish to the satisfaction of the department that the provisions of this article are applicable to his responsibilities arising out of the accident. (b) A violation of this section is an infraction, A second or subsequent conviction of a violation of this section is a misdemeanor. SECTION 13. Section 1852 of the Insurance Code is amended as follows: 1852. Standards in making and using rates. The following standards shtill apply to the makingand use of rates pertaining to all classes of insurance to which the provisions of this chapter are applicable: (a) Excessive, inadequate, !or unfairly discriminatory rates. Rates shall not be excessive or inadequate, as herein defined, nor shall they be unfairly discrimina- tory. No rate shall be held to be excessive unless (1) such rate is unreasonably high for the insurance provided and (2) a reasonable degree of competition does not exist in the area with respect to the classification to which such rate is applicable. No rate shall be held to be inadequate unless (1) suer rate is unreasonably low for the insurance provided and (2) the continued use of such rate endangers the solvency of the insurer using the same, or unless (3) such rate is unreasonably low for the insurance provided and the use of such rate by the insurer using same has, or if continued will have, the effect of destroying competition or creating a monopoly. (b) Loss experience. Consideration shall be given, to the extent applicable, to past and prospective loss experience within and outside this State, to confla~?ation and catastrophe hazards, to a reasonable margin for underwriting profit and contingencies, to past and lJrospective expenses both ceuntry/widc countrywide and those specially applicable to this State, and to all other factors, including judgment factors, deemed relevant within and outside this State; and in the case of fire insurance rates, consideration may be given to the experience of the fire insurance business during the most recent five-year period for which such experience is available. Consideration may also be given in the making and use of rates to dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or Subscribers. (c) Expense provisions. The systems of expense provisions in- cluded in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to retlect the operating methods of any such insurer or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof. (d) Risk classification. Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provi- sions, or both Such standarkts may measure any difference among risks that have a probable effect upon losses or expenses. Classifications or modifications of classifications of risks may be established based upon size, expense, management, individual experience location or dispersion of hazard, or any other reasonable considerations. Such classifications and modifications shall apply to all risks under the same or substantially the same circumstances or conditions. (e) Enforcement. The bommissioner shall have exclusive jurisdiction to en- force this section, subject tO judicial review. SECTION 14. Section 1850.01 is added to the Insurance Code as follows: 1850.01. Rates to be established by competition. (a) No public official ~hall have or be granted the power to establish, fix, determine, set or require ~pproval prior to effectiveness of any rate level for insurance (other than workers' compensation insurance or insurance issued pursuant to an assigned ri~k plan or other residual market mechanism). SECTION 15. Section 10140 of the Insurance Code is reenacted as follows: 10140. Practices based on race, color, etc. proscribed. No admitted insurer, licensed to issue life or disability insurance, shall fail or refuse to accept an application for such insurance, to issue such insurance to an applicant therefor, or issue or cancel such insurance, under conditions less favorable to the insured than in other comparable cases, except for reasons applicable alike to persons of every race, color, religion, national origin, or ancestry; nor shall race, color, religion, national origin, or ancestry of itself constitute a condition or risk for which a higher rate, premium, or charge may be required of the insured fei' such insurance. SECTION 16. Section 11628 of the Insurance Code is reenacted as follows: 11628. Rosenthal-Robbins Auto Insurance Nondiscrimination Law. (a) No admitted insurer, licensed to issue and issuing motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application for guch insurance, to issue such insurance to an applicant therefor, or issue or cancel such insurance under conditions less favorable to the 152 insured than in other comparable cases, except for reasons applicable alike to persons of every race, language, color, religion, national origin, ancestry, or the same geographic area; nor shall race, language, color, religion, national origin, ancestry, or location within a geographic area of itself constitute a condition or risk for which a higher rate, premium, or charge may be required of the insured for such insurance. As used in this section "geographic area" means a portion of this state of not less than 20 square miles defined by description in the rating manual of an insurer or in the rating manual of a rating bureau of which the insurer is a member or subscriber. In order that geographic areas used for rating purposes may reflect homogeneity of loss experience, a record of loss experience for such geographic area shall include the breakdown of actual loss experience statistics by zip code area (as designated by the United State States Postal Service) within each geographic area for family owned private passenger motor vehicles and light- weight commercial motor vehicles, under ll/~-ton load capacity, used for local service or retail delivery, normally within a 50-mile radius of garaging, and which are not part of a fleet of five or more motor vehicles under one ownership. A record of loss experience for such geographic area, including such statistical data by zip code area, shall be submitted annually to the commissioner for examination by each insurer. An insurer may satisfy its obligation to report statistical data under this subparagraph by providing its loss experience data to a rating or advisory organization for submission to the commissioner. This data shall be made available to the public by the commissioner annually after examination; however, it shall be released in aggregate form by zip code in order that no individual insurer's loss experience for any specific geographic area be revealed. Differentiation in rates between geographical areas shall not constitute unfair discrimination. All information reported to the department pursuant to this subdivision shall be confidential. As used in this section, "language" means the inability to speak, read, write, or comprehend the English language. (b) No admitted insurer, licensed to issue and issuing motor vehicle liability insurance policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application for such insurance, refuse to issue such insurance to an applicant therefor, or cancel such insurance solely for the reason that the applicant for such insurance or any insured is employedin a specific occupation. Nothing in this section shall prohibit an insurer from: (1) Considering the occupation of the applicant or insured as a condition or risk for which a higher rate or discounted rate may be required or offered for coverage in the course and scope of his or her occupation. (2) Charging a deviated rate to any classification of risks involving a specific occupation, or grouping thereof, if the rate meets the requirements of Chapter 9 (commencing with Section 1850) of Part 2 of Division 1 and is based upon actuarial data which demonstrates a significant actual historical differential between past losses or expenses attributable to the specific occupation, or grouping thereof, and the past losses or expenses attributable to other classification of risks. For purposes of compiling such actuarial data for a specific occupation or grouping thereof, a person shall be deemed employed in the occupation in which that data is compiled if: (A) the majority of his or her employment during the previous year was in the occupation, or (B) the majority of his or her aggregate earnings for the immediate preceding three-year period were derived from the occupation, or (C) the person is a member in good standing of a union which is an authorized collective bargaining agent for persons engaged in the occupation. Nothing in this section shall be construed to include in the definition of "occupation" active duty service in the Armed Forces of the United States, any status or activity which does not result in remuneration for work done or services performed, or self-employment in a business operated out of an applicant's or insured's place of residence or persons engaged in the renting, leasing, selling, repossessing, rebuilding, wrecking or salvaging of motor vehicles. (c) Nothing in this section shall limit or restrict the ability of an insurer to refuse to accept an application for or refuse to issue or cancel such insurance for the reason that it is a commercial vehicle or based upon the consideration of a vehicle's size, weight, design or intended use. (d) It is the intent of the Legislature that actuarial data by occupation may be examined for credibility by the commissioner on the same basis as any other automobile insurance data which he or she is empowered to examine. (e) The provisions of this section shall be known and may be cited as the "Bosenthal-Bobbins Auto Insurance Nondiscrimination Law." SECTION 17. Section 1853.10 of the Insurance Code is added as follows: 185S. 10. Prohibition of anti-competitive behavior. (a) Consistent with the provisions of the Insurance Code, generally, and of this Chapter 9, specifically: (1) No insurer shall monopolize or attempt to monopolize, or combine or conspire with any other insurer or with a rating or advisory organization to monopolize, in any territory, any class of insurance as defined in Sections 100 through 121 of Chapter 1 of Part 1 of Division 1 of the Insurance Code. (2) No insurer shall agree with any other insurer or with a rating or advisory organization to adhere to any rate. ($) No insurer shall make any agreement with any other insurer or rating or advisory organization to refuse to provide any class of insurance as defined in Sections 100 through 121 of Chapter 1 of?art 1 of Division 1 of the Insurance Code. (4) No insurer or rating or advisory organization shall enter into an agreement to commit any act qf boycott, coercion or intimidation. (5) No insurer shall enter into an agreement with any other insurer or rating or advisory organization to withhold any class of insurance as defined in Sections 100 through 121 of Chapter 1 of Part 1 of Division l of the Insurance Code. (6) No rating or advisory organization shall preclude any insurer from making its rates independently of such rating organization or charging rates differenl from the rates made by the rating organization. G88 (b) (1) Any rate made or action taken in violation of subdivision (a) may be disapproved by the commissioner pursuant to the applicable procedures pre- scribed in Section 1857.2. Nothing in this section shall be construed to apply to or prohibit any rate made or such other actions as may be authorized or permitted under this Code in general or this Chapter 9 in particular. Without limiting the generality of the preceding sentence, the prohibitions of Section 1853.10 shall not be construed to apply to or prohibit joint activity by or among: (i) two or more insurers having a common ownership or control or operating in this State under common ownership or control,. (ii) joint underwriting joint reinsurance, or pooling arrangements authorized or permitted by the Insurance Code or the commissioner including, but not limited to, those established to provide property insurance; automobile insurance on an assigned risk basis; child care liability insurance or such similar arrangements as may now or hereafter be established; (iii) joint underwriting, joint reinsurance, or pooling arrangements pertaining to the availability of insurance or the ability ~f an insured or insureds to obtain desired coverages, amounts of insurance or limits of liability; (iv) insurers with respect to the apportionment of casualty insurance as authorized by Section 1853.8 of this Chapter,. or (v) insurers and rating or advisory organizations exchanging, analyzing, or otherwise developing, information and experience data as provided in this Chapter 9 of the Insurance Code. (2) As the exclusive methods for enforcing this Section, the Commissioner may initiate action under Section 1857.2 or a person injured in his business or property by reason of anything fqrbidden in subdivision (a) of this Section may fi'lc a complaint and request a hearing with the Commissioner in accordance with the procedures prescribed in Section 1858. SECTION 18. Section 12901.6 of the Insurance Code is added as follows: 12901.6. Prohibition of conflicts of interest. Neither the commissioner nor any deputy or employee of the department shall, within one year aft_er his or her tenure in office or termination of employment, represent, or counsel, advise or assist in representing, any insurer or licensee before the department in connection with any particular matter involving specific parties (i) that teas actually pending under his or her gfficial responsibility within a period of one year prior to the termination _of such responsibility or (ii) in which he or she participated personally or substantially as an officer or employee. SECTION 19. Section 12921.6 of the Insurance Code is added as follows: 12921.6. Administrative interpretations. For the guidance of insurers and others obligated to comply with this code and other laws regulating the business of insurance in this State, the commissioner may issue written administrative interpretations of any provision of this code or any other law regulating the business of insurance in this State. No person shall be liable for any action taken in good faith conformity with and in reliance on any such administrative interpretation. An insurer whose policy has been written and thepremium determined in good faith conformity with and in reliance on any such administrative interpretation shall not be liable to provide different coverage during the term of such policy even if the administrative interpretation relied upon shall be determined to be incorrect. A ny person aggrieved by any such administrative interpretation may obtain judicial review thereof in such manner as may be provided b~l law. SECTION 20. Section 1643 of the Insurance Code is amended as follows: 1643. Bank, holding compang subsidia~, affiliate and officers and employ- ecs; prohibition against licensing; exception. (a) No bank, or bank holding company, subsidiary, or affiliate thereof, or any officer or employee of a bank, bank holdingeompany, subsidiary, or affiliate, may be licensed as an insurance agent or broker or act as an agent or broker for insurance, in this state, or control a licensed insurance agent orbroker, except that a bank or a bank holding company subsidiary, or affiliate of a bank, may be issued a license to act as a life and disability agent limited to the transaction of credit life and disability insurance, or an agent limited to the transaction of insurance which is limited solely to assuring repayment of the outstanding balance due on a specific extension of credit by a bank or bank holding company or its subsidiary in the event of the involuntary unemployment of the debtor, or both. A commercial bank may be licensed to sell insurance or act as an insurance broker as provided in Section 1208 of the Financial Code. This section shall not apply to any bank or bank holding company which, under the authorization of the Federal Reserve Board, had prior to January 1, 1976, a subsidiary or affiliate licensed to sell insurance (except that subsequent authorization to expand such activities shall be subject to this section), or to any bank holding company owning a state-chartered bank which had, prior to January I, 1976, a subsidiary or affiliate licensed to sell insurance. This section shall not apply to any person authorized or licensed to make loans pursuant to Division 7 (commencing with Section 18000), Division 9 (commencing with Section 22000), Division 10 (commencing with Section 24000), or Division 11 (commencing with Section 26000) of the Financial Code. (b) For the purposes of this section, the following definitions shall apply: ~ (1) "Bank" means any institution in this state defined in Section 102 of the Financial Code except that such term does not include a title insurance company authorized to transact a trust business under the provisions of Article 4 (com- mencing with Section 12390) of Chapter 1 of Part 6 of Division 2 or a trust company controlled by or under common control with a title insurance company. 44¢r (2) "Bank holding company" means the same as the definition of that term set forth in Section 2 of the federal Bank Holding Company Act of 1956, as amended, but limited to holding companies which control a bank authorized to accept deposits in this state. ~ (3) "Subsidiary" means any corporation, association, or partnership, owned in whole or part by a bank or bank holding company. 44)' (4) "Affiliate" means any corporation, association, or partnership con- nected through the ownership of a 10-percent or greater interest by a common parent. G88 4e~r (5) "Credit life, health; and accident insurance" means insurance on the life and health of a borrower from a bank issued tO secure the repayment of the amount borrowed. ~ 44~ (6) "Control" means the possession, by any means, of the power to direct or cause the direction of the management or activities of a licensed insurance agent or broker. (c) The provisions of this section may be amended by the Legislature by Statute. SECTION 21. Section 750 of the Insurance Code is reenacted as follows: 750. Rebate of premium. An insurer, insurance agent, broker, or solicitor, personally or by any other party, shall not offer or pay, directly or indirectly, as an inducement to insurance on any subject-matter in this State, any rebate of the ~vhole or part of the premium payable on an insurance contract, or of the agent's or broker's commission thereon, and such rebate is an unlawful rebate. SECTION 22. Section 750.1 of the Insurance Code is amended as follows: 750.1. Unlawful rebates, profits and commissions; legislative findings, decla- rations and intent. The Lcgislaturc people hereby ~.d; find and dc~arcs declare that the continued regulation of the business practices of insurers and their producers is in the interest of the citizens of the state and that tile control and limitations of unlawful rebates, profits, and commissions is an essential component of that regulation which is necessary to effectuate an adequate and complete system and regulation of insurer and producer business practices. The Lcgislaturc people c,",nd; find that the statutes controlling unlawful rebates, profits, and commissions continue to provide critical protection to insureds in this state from the numerous consequences that would occur in the absence of such regulation, including company insolvencies, unfair discrimination between insu- reds with identical risks creating subsidies from small purchasers of insurance in favor of large purchasers of insurance, decreased quality of services to insurance consumers, increased concentration of insurance distribution and sales mecha- nisms, and misrepresentation and unethical sales practices such as improper replacement or twisting to the detriment of the public. It is the intent of the Legislature people in cnactlr.$ reenacting this section to clearly set forth the !cglglat:vc intent supporting the enactment, continuing vitality, and importance of the unlawful rebates, profits, and commissions sections of this code. SECTION 23. Section 751 of the Insurance Coda is reenacted as follows: 751. Specification of consideration in policy or application. An insurer, or an insurance agent, broker, or solicitor, personally or otherwise, shall not offer or pay, directly or indirectly, as an inducement to enter into an insurance contract, any valuable consideration which is not clearly specified, promised or provided for in the policy, or application for the insurance, and any such consideration not appearing in the policy is an Unlawful rebate. SECTION 24. Section 752 of the Insurance Code is reenacted as follows: 752. Acceptance of rebate; misdemeanor. Any person named as the insured in any policy or named as the principal, or obligee, in any surety policy or the agent or representative of any such person who, directly or indirectly, knowingly accepts or receives any unlawful rebate is guilty of a misdemeanor. SECTION 25. Section 754 of the Insurance Code:is reenacted as follows: 754. Payments to insurance brokers. Payments of commissions or fees by insurers or their agents to insurance brokers, when otherwise lawful under this code, are expressly authorized. SECTION 26. Section 755 of the Insurance Code is reenacted as follows: 755. Splitting commissions. The paying or allowing of any commission or oth¢r valuable consideration on insurance business in this State to other than an admitted insurer or a licensed insurance agent, broker or solicitor is an unlawful rebate. SECTION 27. Section 755.2 of the Insurance Code is reenacted as follows: 755.2. Receipt of continuing commissions on policy. If at the time of the solicitation and issuance of a policy of life or disability insurance, or of a surety bond which by its terms continues until canceled, a person may lawfully receive commissions thereon, such person, or in the event of his death, his estate or heirs may continue to receive commissions thereon during the continuance in force or renewal of such policy or bond without being licensed under the provisions of Chapter 5, Part 2, Division 1 of this code, provided: (a) Such recipient does not transact insurance in Connection with such policy or bond while not so licensed; and (b) The payment is made pursuant to a contract entered into, before such solicitation and issuance, between the insurer paying or allowing the commission and such person. SECTION 28. Section 755.5 of the Insurance Code is reenacted as follows: 755.5. Receipt of commissions by agents, solicitor$ and insurers. It is unlawful for an insurance agent who is not also licensed as an insurance broker to receive commissions derived from insurance placed with an insurer which has not appointed him to act as its agent in the transaction of such insurance. It is unlawful for an insurance solicitor to receive commissions on insurance from any source other than the employer for whom he~s licensed excepting on life or disability insurance transactedby him under individual licenses as life or disability agent issued to him pursuant to this code. It is unlawful for any person to pay to an insurance agent or solicitor any commissions which he can not lawfully receive. Except as provided in Section 763 it is unlawful for an insurer to receive for its own use commissions on insurance placed with another insurer. SECTION 29. Section 755.fi of the Insurance Code is reenacted as follows: 153 755.6. Insurer participating in assigned risk plan; payment of commission for additional coverages. Notwithstanding the provisions of Section 755.5, an insurer participating in any Assigned Risk Plan, as provided for in Article 4 (commencing with Section 11620), Chapter 1, Part 3, Division 2 of the Insurance Code, may pay to a licensed insurance agent, and such agent may receive, a commission or consideration on any automobile or liability coverages written in addition to any commission or consideration required under Such plan if such agent has been designated by the applicant for insurance as producer of record for the coverages required under such plan. SECTION 30. Section 755.7 of the Insurance Code is reenacted as follows: 755.7. Advising persons concerning insurance for consideration; allowing credit for service; misdemeanor. Any person, including but not hmited to any person licensed, certificated under this code or exempted under this code from regulation, who for consideration advises, or agrees to advise, any person concerning insurance, insurance policies, insurance needs or insuranee~programs of any sort and who agrees to, or does, allow credit against such conSideration for such service for any portion of any insurance commission which imay accrue, directly or indirectly, to suchperson who so advises or agrees to advise, is guilty of making an unlawful rebate and guilty of a misdemeanor. SECTION 31. Section 758 of the Insurance Code is reenacted as follows: 756. Misrepresentation ofipay roll to procure lower premium. When the premium on a policy insuring an employer is based upon the amount or segregation of the empl~)yer's pay roll, and the employer, personally or knowingly through his employee, procures a lower premium by wi!ful!y willfully misrepresenting the amount or segregation, such misrepresentation is an unlawful rebate as to the employer. Liability to state; penalty. In addition to any penalty provided by law for unlawful rebates, the employer in such case is liable to the State in an amount ten times the difference betweenj the lower premium paid and the premium properly payable. The commissioner shall collect the amount so payable and may bringa civil aehon in his name as commissioner to enforce collection unless the misrepresentation is made to and lower premium procured from the State Compensation Insurance Fund. In the latter ease the liability to the State under this sect/on shall be enforced in a civil action in the name of the State Compensation Insurance Fund and any amount so collected shall become a part of that fund. SECTION 32. Section 75'/of the Insurance Code is reenacted as follows: 7,57. Insurer's acceptanceiof false pay roll statement. When a statement of the amount or segregation of a pay roll is materially false, and an insurer, through a person employed by it in a managerial capacity, accepts the statement as the basis for the premium on a policy, the acceptance is an unlawful rebate if the accepting employee knows of the falsity. SECTION 33. Section 7§8 of the Insurance Code is reenacted as follows: 758. Insurer's duty of diligence. Every insurer shall exercise reasonable diligence in securing the observance of this article by its agents. 1 SECTION 34. Section 759 of the Insurance Code is reenacted as follows: 759. Appointment of aggmt for rebate. It is unlawful for any insurer to appoint an agent for the purpose of enabling such agent, or the employer or person requesting the appointment of the agent, to obtain insurance at a cost less than that specified in the policy, or at a cost less than that specified in the aPPlication therefor. SECTION 35. Section 760 of the Insurance Code is reenacted as follows: 760. Personal or controlled insurance. Definition& As used in this section "personal or controlled insurance" means insurance covering an insurance agent, broker, or solicitor, or (a) His spouse, his employer or his employer's spouse. (b) Any person related to him or the persons mentioned in subdivision (a) within the second degree by blood or marriage. (c) If his employer is a corporation, any person directly or indirectly owning or controlling a majority of the voting stock or controlling interest in such corpora- tion. (d) If his employer is a partnership or association, any person owning any interest in such partnership or association. (e) If the agent or broker is a corporation, any person directly or indirectly owning or controlling a majority of the voting stock or controlling interest in the agent or broker and any ccrporation which is also similarly directly or indirectly controlled by the person who directly or indirectly controls the agent or broker. (f) If the agent or broker is a corporation, any corporation making consolidated returns for United States income tax purposes with any corporation described in subdivision (e). Unlawful rebate. If prOmiums on personal or controlled insurance transacted by an insurance agent, broker, or solicitor payable in one year exceed the premiums on other insurance transacted by such licensee payable in the same year, the receipt of commissions upon the excess is an unlawful rebate. Provided that during and after the sixth calendar year following the initial licensing of such agent, broker, or solicitor, in any manner as an agent, broker or solicitor, whether continuously licensed or not, if premiums on personal or controlled insurance transacted by him payable in any one such calendar year exceed 331/o percent of the other premiums transacted by him payable in the same calendar year, the receipt of commissions upon the excess over such 331/a percent is an unlawful rebate. For the pm,poses purpose of this paragraph, if the agent or broker be an organization the sixth calendar year shallbe the first calendar year beginning five years or more after the initial licensing of the organization, or any predecessor thereof, as an! agent or broker. Inapplicability to certMn individual licensees. Provided further, that this 154 section does not apply to an individual licensee who: (1) is licensed during all of such calendar year as a solicitor, or individually as an agent or broker; (2) during such calendar year conducts an individual business, not being named to transact on any organization license nor owning any interest in any corporation or partnership transacting an insurance agency or brokerage business; (3) has been continuously licensed in some manner as an active agent, broker or solicitor for at least 25 years; and (4) is at least 65 years of age at the beginning of the calendar year. Presumptions. Whenever an officer or director of a corporation acts as agent, broker, or solicitor in the transaction of insurance covering the corporation, he shall be conclusively presumed to have received the full commission on such contract while an employee of the corporation. Whenever the remuneration for services of an employee is decreased by the employer or is made unreasonably small in amount but the employee is permitted, as an insurance agent, broker, or solicitor, to transact personal or controlled insurance, it shall be conclusively presumed that such employee receives the full amount of commission on such personal or controlled insurance. Year defined,, suspension, revocation or denial of h'cense. "Year" as used in this section means the calendar year. Suspension, revocation or denial of license for violation of this section may be ordered at any time within five years after the close of the year in which the violation occurred. SECTION 36. Section 760.5 of the Insurance Code is reenacted as follows: 760.5. Personal or controlled life insurance. Definition. As used in this section "personal or controlled insurance" means insurance coveringa life agent, or (a) His spouse,his employer, his employer's spouse, or any group of employees under a group policy issued to his employer. (b) Any person related to him, his spouse, his employer or his employer's spouse within the second degree by blood or marriage. (c) If his employer is a corporation, any person directly or indirectly owning or controlling a majority of the voting stock or controlling interest in such corpora- hon. (d) If his employer is a partnership or association, any person owning any interest in such partnership or association. (e) If the agent is a corporation, any person directly or indirectly owning or controlling a majority of the voting stock or controlling interest in the agent. Unlawfyl rebate. If commissions on personal or controlled insurance trans- acted by a life agent under his license as a life agent received in one year exceed the commissions received in that year on other insurance transacted by such licensee under his license as life agent, the receipt of commissions upon personal or controlled insurance in excess of those on such other insurance is an unlawful rebate. Provided that during and after the sixth calendar year following the initial licensing of such life agent in any manner as a life agent, disability agent or life and disability agent, whether continuously licensed or not, if commissions on personal or controlled insurance transacted by him under any or all such licenses received in any such calendar year exceed 33~ percent of the commissions received in the same calendar year on other insurance transacted by him under any or all such licenses, the receipt of commissions upon personal or controlled insurance in excess of 331/a percent of those on such other insurance is an unlawful rebate. For the purposes of this paragraph, if the license be a joint firm license: The sixth calendar year as respects the firm shall be the first calendar year beginning five years or more after the initial licensing of the firm or any predecessor thereof as a joint firm licensee with any individual; the firm may be charged with a violation of this section separately based upon all joint firm licenses it may have held during the calendar year; and an individual named on one or more joint firm licenses may be charged with a violation of this section separately based upon all life licenses, individual and joint firm, he may have held during the calendar year. Inapplicability to certain individual licensees. Provided, further, that this section does not apply to an individual licensee who: (1) is licensed during all of such calendar year under one or more kinds of individual life licenses; (2) during all of such calendar year conducts an individual business, not being named in any joint firm license nor owning any interest in a corporation or partnership transacting business under any kind of life license; (3) has been continuously licensed in some manner as an active agent under some kind of life license for at least 25 years; and (4) is at least 65 years of age at the beginning of the calendar year. Year defined,, suspension, revocation or denial of license. "Year" as used in this section means the calendar year. Suspension, revocation or denial of license for violation of this section may be ordered at any time within five years after the dose of the year in which the violation occurred. SECTION 37. Section 761 of the Insurance Code is reenacted as follows: 761. Making or receiving unlawful rebate; misdemeanor. Any insurer, insurance agent, broker, solicitor, or life agent and any officer or employee of an insurer, insurance agent, broker, or life agent that makes or receives an unlawful rebate is guilty of a misdemeanor. SECTION 38. Section 763 of the Insurance Code is reenacted as follows: 763. Acts not unlawful rebates. The following acts are not unlawful rebates: (a) Dividends on participating policies. The return by an insurer issuing policies on a participating plan, or any portion of the premium as a dividend after the expiration of the term covered by such policy. (b) Commissions. The payment of commission by any insurer, or insurance agent, broker or solicitor, to another insurer, or insurance agent, broker or solicitor, upon insurance lawfully transacted in that capacity. (c) Marine discounts. The allowance by any marine insurer, or marine insurance agent, broker, or solicitor to any insured, of such usual discount as is sanctioned by custom among marine insurers as being additional to the agent's or broker's commission. G88 (d) Commissions to insured payee. The paying by an insurer to another insurer, or to an insurance agent, broker, or solicitor, of a commission in respect to a policy under which the payee is insured, or the receiving by such payee of such commission. (e) Bonuses on nonparticipating life policies. The paying by an insurer of bonuses to policyholders on nonparticipating life insurance or otherwise abating their premiums, in whole or in part, out of surplus accumulated from nonpartici- pating insurance. (f) Dividends on participating life policies. The return as a dividend by a life insurer of any portion of the premium on policies issued on a participating plan at any time. (g) Adjustments for direct payment of industrial life premiums. The return, by an insurer transacting industrial insurance on a weekly payment plan, to policyholders who have made premium payments for a period of at least one year directly to the insurer at its home or district office, of a percentage of the premium which the insurer would have paid for the weekly collection of such premiums. (h) Existing life policies. The paying by any life insurer, or the receiving by life insurance policyholders of special compensations, or the allowing and receiv- ing of credits already agreed upon in life insurance contracts now in force. (i) Insurer's group life plan for own employees. The payment by an insurer of any portion of life insurance premiums payable by its employees pursuant to a life insurance program under which 75 pe~ een~ percent or more of its employees are required to carry life insurance on their lives so long as they remain in the employment of insurer, O) Cosureties. The payment or allowance of a fee or commission by one surety insurer to another surety insurer in respect to a risk on which both are cosureties. SECTION 39. Section 763.5 of the Insurance Code is reenacted as follows: 763.5. Sale of agent's or broker's business. The sale of the good will, business, list of policyholders or similar assets of an agent or broker in consideration of commissions or portions thereof to be thereafter earned by the use of such assets and payments of such consideration are not unlawful rebates if the purchaser is duly licensed to transact insurance and the receipt of the commissions would not constitute a violation of Section 760 if the person receiving them were licensed as an insurance agent. SECTION 40. Section 764 of the Insurance Code is reenacted as follows: 764. Privilege against self-incrimination. Any person may be compelled to testify or produce evidence at the trial or hearing on a charge of violating a provision of this article, even though such testimony or evidence may incriminate him. A prosecution shall not be brought or maintained against such person for any act concerning which he thus testifies or produces evidence, except for perjury committed in so testifying. SECTION 41. Section 765 of the Insurance Code is ~eenacted as follows: 765. Suspension of certificate of authoriO/. If an insurer knowingly violates any provisions of this article, or knowingly permits any officer, agent, or employee so to do, the commissioner, after a hearing in accordance with the procedure provided in Section 704, may suspend the insurer's certificate of authority to do the class of insurance in which the violation of this article occurred. SECTION 42. Section 766 of the Insurance Code is reenacted as follows: 766. Suspension or revocation of license. If an insurance agent, broker, or solicitor knowingly and wilfully violates any of the provisions of this article, the commissioner, after a hearing in accordance with the procedure provided in Article 13 of Chapter 5 of this part may suspend or revoke the violator's license. SECTION 43. Section 767 of the Insurance Code is reenacted as follows: 767. Payment of commission to agent or broker licensed in Mexico. Notwithstanding any provision in this article to the contrary, it shall not be unlawful for any licensed insurance broker to pay a commission to an agent or broker licensed under the laws of Mexico when such agent or broker in Mexico refers to the insurance broker licensed in this state a resident of Mexico who wishes to obtain a policy of automobile liability insurance to be effective in this state from an insurer licensed in this state, and such broker negotiates and effects such a policy of insurance for such resident of Mexico. SECTION 44. Section 1850 of the Insurance Code is reenacted as follows: 1850. Purpose of chapter. The purpose of this chapter is to promote the public welfare by regulating insurance rates as herein provided to the end that they shall not be excessive, inadequate or unfairly discriminatory, to authorize the existence and operation of ualified rating organizations and advisory organizations and require that speci- ed rating services of such rating organizations be generally available to all admitted insurers, and to authorize cooperation between insurers in rate making and other related matters. It is the express intent of this chapter to permit and encourage competition between insurers on a sound flnancialbasis and nothing in this chapter is intended to give the Commissioner power to fix and determine a rate level by classification or otherwise. SECTION 45. Section 1850.1 of the Insurance Code is reenacted as follows: 1850.1. Bating organization defined In this chapter "rating organization" means every person, other than an admitted insurer, whether located within or outside this State, who has as his object or purpose the making of rates, rating plans or rating systems. Two or more admitted insurers which act in concert for the purpose of making rates, rating plans or rating systems, and which do not operate within the specific authoriza- tions contained in Sections 1853.5, 1853.7, 1853.8, and Article 5 shall be deemed to be a rating organization. No single insurer shall be deemed to be a rating organization. SECTION 46. Section 1850.2 of the Insurance Code is reenacted as follows: 1850.2. Advisory organization defined. In this chapter "advisory organization" means every person, other than an admitted insurer, whether located within or outside this State, who prepares policy forms or makes underwriting rules incident to but not including the making of rates, rating plans or rating systems, or which collects and furnishes to admitted insurers or rating organizations loss or expense statistics or other statistical information and data and acts in an advisory, as distinguished from a rate making, capacity. No duly authorized attorney at law acting in the usual course of 'his profession shall be deemed to be an advisory organization. SECTION 47. Section 1850.3 of the Insurance Code is reenacted as follows: 1850.3. Member and subscriber defined. . Unless otherwise apparent from the context, in this chapter: (a) "Member" means an insurer who participates in or is entitled to participate in the management of a rating, advisory or other organization. (b) "Subscriber" means an insurer which is furnished at its request (1) with rates and rating manuals by a rating organization of Which it is not a member, or (2) with advisory services by an advisory organization of which is is not a member. SECTION 48. Section 1853 of the Insurance Code is reenacted as follows: 1853. Concerted action of insurers. Subject to and in compliance with the provisionsI of this chapter authorizing insurers to be members or subscribers of rating or advisory organizations or to engage in joint underwriting or joint reinsurance, two or more insurers may act in concert with each other and with others with respect ire any matters pertainine to the making of rates or rating systems, the preparation or making of insura~,.ce policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research. SECTION 49. Section 1853.5 of the Insurance Code is reenacted as follows: 1853.5. Insurers having common ownership or management; concerted action. With respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research, two or more admitted insurers having a common ownership or operating in this State under common management or control, are hereby authorized to act in concert between or among themselves the same as if they constituted a single insurer, and to the extent that such matters relate to co-surety bonds, two or more admitted insurers executing such bonds are hereby authorized to act in concert between or among themselves the same as if they constituted a single insurer. SECTION 50. Section 1853.6 of the Insurance Code is reenacted as follows: 1853.6. Agreements to adhere to rates. Members and subscribers of rating or advisory organizations may use the rates, rating systems, underwriting rules or policy or bonc~ ~rms of such organizations, either consistently or intermittently, but, except as Provided in Sections 1853.5, 1853.8, and Article 5, shall not agree with each other or rating organizations or others to adhere thereto. The fact that two or more admitted insurers, whether or not members or subscribers of a rating or advisory organization, use, either consistently or intermittently, the rates or rating systems made or adopted by a rating organization, or the underwriting rules or policy or bond forms prepared by a rating or advisory organization, shall not be sufficient in itself to support a finding that an agreement to so adhere exists, and may be u~ed only for the purpose of supplementing or explaining direct evidence of the existence of any such agreement. SECTION 51. Section 1853.7 of the Insurance Code is reenacted as follows: 1853.7. Exchange of information and experience data. Licensed rating organizations and admitted insurers are authorized to exchange information and experience data with rating organizations and insurers in this and other states and may consult with them with respect to rate-making and the application of rating systems. SECTION 52. Section 1854 of the Insurance Code is reenacted as follows: 1854. Bequirement of license; application; fee, No rating organization shall conduct its operations in this state without first filing with the commissioner a written application for and securing a license to act as a rating organization. Any rating organization ma)' make application for and obtain a license as a rating organization if it shall meet the requirements for license set forth in this chapter. Every such rating organ/zation shall file with its application (a) a copy of its constitution, its articles of incorporation, agreement or association, and of its bylaws, rules and regulations gOVerning the conduct of its business, all duly certified by the custodian of the originals thereof, ih) a list of its members and subscribers, (c) the name and address oft resident of this state upon whom notices or orders of the commissioner or process affecting such rating organization may be served, and (d) a statement of its qualifications as a rating organization. The fee for filing an application for license as a rating organization is one hundred seventy-seven dollars ($177) lawful money of the United States, payable in advance to the commissioner. SECTION 53. Section 1854.1 of the Insurance Code is reenacted as follows: 1854.1. Bequisites for obtaining and retaining license. To obtain and retain a license, a rating organization shall provide satisfactory evidence to the commissioner that it will: (a) Permit any admitted insurer to become a member of or a subscriber to such rating organization at a reasonable cost and without discrimination, or withdraw therefrom. wh(b)ich Neither have nor adopt any rule or exact any agreement, the effect of would be to require any member or subscriber as a condition to member- ship or subscribership, to adhere to its rates, rating plans, rating systems, underwriting rules, or policy or bond forms. (c) Neither adopt any rule nor exact any agreement the effect of which would 155 be to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their -^~:~-- ~,~a~.~ policyholders, members or subscribers. id) Neither practice nor sanction any plan or act of boycott, coercion or intimidation. (e) Neither enter into nor sanction any contract or act by which any person is restrained from lawfully engaging in the insurance business. if) Notify the commissioner promptly of every change in its constitution, its articles of incorporation agreement or association, and of its by-laws, rules and regulations governing the conduct of its business; its list of members and subscribers; and the name and address of the resident of this State designated by it upon whom notices or orders of the commissioner or process affecting such organization may be served. (g) Comply with the provisions of Section 1857. SECTION 54. Section 1854.2 of the Insurance Code is reenacted as follows: 1854.2. Investigationofa~plicanL. requirementsforissuanceoflicense;limited license; license period. ~ The commissioner shall examine each application for license to act as a rating organization and the documents filed therewith and may make such further investigation of the applicant, its affairs and its proposed plan of business, as he deems desirable. The commissioner shall issue the license applied for within 60 days of its filing with him if from such examihation and investigation he is satisfied that: ia) The business reputation of the applicant and its officers is good. (b) The facilities of the ~pplieant are adequate to enable it to furnish the services it proposes to furnish. (c) The applicant and its proposed plan of operation conform to the require- ments of this chapter. Otherwise, but only after hearing upon notice, the commissioner shall in writing deny the application and notify the applicant of his decision and his reasons therefor. The commissioner may grant an application in part only and issue a license to act as a rating organizatiot~ for one or more of the classes of insurance or subdivisions thereof or class df risk or a part or combination thereof as are specified in the application if the applicant qualifies for only a portion of the classes applied for. Licenses issued pursuant to this section shall remain in effect until revoked as provided in this chapter. SECTION 55. Section 1854.25 of the Insurance Code is reenacted as follows: 1854.25. Annual fee. Notwithstanding the provision of Section 1854.2, each rating organization possessing a license of indefinite term pursuant to such section shall owe and pay to the commissioner an annual fee of one hundred seventy-seven dollars ($177) in lawful money of the UnitedlStates in advance on account of such license until its final terminahon. Such fee shall be for periods commencing o~ July 1,1964, and on each July 1st thereafter and ~nding on June 30,1965, and each June 30th thereafter, and shall be due and payable on March 1, 1964, and on each March 1st thereafter and shall be delinquent on April 1, 1964, and each April 1st thereafter. SECTION 56. Section 1854.3 of the Insurance Code is reenacted as follows: 1854.3. Membership eligibility rules. Subject to the approval of the commissioner licensed rating organizations may make reasonable rules governing eligibility for membership. SECTION 57. Section 1854.4 of the Insurance Code is reenacted as follows: 1854.4. Insurers with Common ownership or management; conditions of membership. If two or more insurers having a common ownership or operating in this State under common management are admitted for the classes or types of insurance for which a rating organization is licensed to make rates, the rating organization may require as a condition to membership or subscribership of one or more that all such insurers shall become members or subscribers. SECTION 58. Section 1854.5 of the Insurance Code is reenacted as follows', 1854.5. Workers' compensation insurance rating organizations; exemption from licensing or registration requirements of this chapter,, authority. A workers' compensation insurance rating organization licensed pursuant to the provisions of Article 3 (commencing with Section 11750) of Chapter 3 of Part 3 of Division 2 which does not make rates, rating plans or rating systems for insurance covering the liability of employers for compensation or damages under the United States Longshoremen's and Harbor Workers' Compensation Act (33 U.S.C. 901, et seq.) shall not be required *to be licensed as a rating organization or registered as an advisory organization pursuant to the provisions of this chapter and shall have authority under its license as a workers' compensation insurance rating organiza- tion to: ia) Collect and tabulate loss and expense experience statistics and other information and data relating to insurance covering employers against their liability' for compensation under the United States Longshoremen's and Harbor Workers' Compensation Act. (b) Furnish or exchange such information and experience data to or with rating organizations, advisory organizations and insurers in this and other states. (c) Adopt and enforce compliance by its insurer members with reasonable rules and statistical plans to be used in the recording and reporting by insurer members of their Califorriia longshoremen's and harbor workers' insurance loss and expense experience in order that such experience of all of/ts insurer members shall be available in such form and detail as will be of aid to the commissioner in the enforcement of, and to its insurer members in complying with, the provisions of this chapter. id) Engage in the sam4 activities and carry out the same functions with respect to insurance covering the liability of employers for compensation or damages under the United States LOngshoremen's and Harbor Workers' Compensation Act 156 that it is authorized to engage in or carry out with respect to California workers' compensation insurance generally under the provisions of Article 3 (commencing with Section 11750) of Chapter 3 of Part 3 of Division 2 other than the making of rates, rating plans and rating systems. SECTION 59. Section 1857.5 of the Insurance Code is reenacted as follows: 18.57.5. Rules and statistical plans; promulgation; compilations. ia) The commissioner may promulgate reasonable rules and statistical plans, reasonably adapted to each of the rating systems in use within the state, which may be modified from time to time and which shall be used thereafter by each insurer in the recording and reporting of its loss and countrywide expense experience, in order that the experience of all insurers may be made available at least annually in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in this chapter. Such rules and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this state and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating such rules and plans, the commissioner may give due consideration to the rating systems in use and, in order that such rules and plans may be as uniform as ispractieable among the several states, to the rules and to the form of the plans usedfor such rating systems in other states. No insurer shall be required to record or report its loss experience on a classification basis that is inconsistent with the rating system in use by it. The commissioner may designate one or more rating organizations or advisory organizations to assist him in gathering such experience and making compilations thereof, and such compilations shall be made available, subject to reasonable rules promulgated by the commissioner, to insurers and rating organizations. (b) Reasonable rules and plans may be promulgated by the commissioner for the interchange of data necessary for the application of rating plans. (c) In order to further uniform administration or rate regulatory laws, the commissioner and every insurer and rating organization may exchange informa- tion and experience data with insurance supervisory officials, insurers and rating organizations in other states and may consult with them with respect to ratemaking and the application of rating systems. SECTION 60. Section 1857.7 of the Insurance Code is reenacted as follows: 1857.7. Products liability insurers; transmission of information. ia) Any insurer issuing a policy of products liability insurance in this state shall transmit the following information, based on its nationwide products liability insurance writings, to the department each year in the annual report of the insurer: (1) Premiums written. (2) Premiums earned. (3) Unearned premiums. (4) The dollar amount of claims paid. (5) The number of outstanding claims. (6) Net loss reserves for outstanding claims excluding claims incurred but not reported. (7) Net loss reserves for claims incurred but not reported. (8) Losses incurred as a percentage of premiums earned. (9) Net investment gain or loss and other income or gain or loss allocated to products liability lines. (10) Net income before federal and foreign income taxes. (11) Expenses incurred including loss adjustment expense, commission and brokerage expense, other acquisition expense and general expense. (b) The reports provided pursuant to subdivision (a) shall be available for public inspection and shall be retained on file by the department for five years. (e) The reports required by subdivision (a) shall only contain information for theyear for which the reports are being filed. (d) Any information provided by any insurer to the department pertaining to a specific claim or a products liability insurance policy shall be classified as confidential and shall not be revealed by the department. SECTION 61. Section 1857.9 of the Insurance Code is reenacted as follows: 1857.9. Report; contents; designating classes 9f insurance generally unavail- able, unaffordable, or for which there have been unusually great premium increases; information on classes of insurance; excluded commercial liability insurance;filing reports; emergency regulations. (a) Every insurer doing business in this state, except as provided by subdivision (g), shall report on a calendar year basis for each class of insurance designated in the prior calendar year by the commissioner pursuant to subdivision (b) and for each class listed in subdivision (c), both for policies issued or issued for delivery in California, and for policies issued or issued for delivery in the United States and territories: (1) The number of policies written, the direct premiums written, the direct oremiums earned, the direct losses paid, the direct losses incurred, the direct sses unpaid (not including losses incurred but not reported) the number of outstanding claims at year end and the number of claims paid in the preceding year, the allocated loss adjustment expense, and the percentage of allocated loss adjustment expense attributable to defense attorney expenses. (2) Whether policies are written on a claim made or occurrence basis, and whether there has been a change in the preceding 12 months. (3) For each loss reserve for each class, whether the reserve is discounted in anticipation of future investment earnings. (4) The commissioner shall waive the requirements of paragraph (1) for any information that has been provided to the Insurance Services Office by the insurer, if the Insurance Services Office provides the information to the commis- sioner on or before the date on which the insurer is required to file the statement. (b) No later than October 1 of each year the commissioner shall designate those classes of insurance, as defined by the Insurance Service Office, that are generally unavailable or unaffordable in California, or for which there have been unusually G88 great premium increases. The factors the commissioner shall consider in making this determination shall include, but are not limited to, the following: (1) Consumer complaints. (2) Rate complaints. (3) Surveillance by the department. (4) Market conduct. (c) In addition to the classes designated by the commissioner pursuant to subdivision (b) the insurer shall include the information required by subdivision (a) for those classes of insurance, as defined by the Insurance Services Office, covering liability insurance for municipalities, products liability insurance, liability insurance for any business or nonprofit enterprise required to carry liability insurance by state law, news publishers' liability insurance, and professional errors and omissions (malpractice) liability insurance for doctors and for lawyers. Collection of the data described in this section shall be terminated upon a joint resolution of the Legislature specifying such termination of collection. Insurers shall not be required to report under this section information required to be reported under Sections 1857.7, 1864, 11555.2, and 12958. (d) The insurer shall also report for both California and for the United States and its territories for the calendar year: (1) Each class of commercial liability insurance, as defined by the Insurance Services Office, that is specifically excluded from any reinsurance treaty for reinsurance ceded. (2) Each class of commercial liability insurance, as defined by the Insurance Services Office, that is specifically excluded from any reinsurance treaty for reinsurance assumed. (e) The department shall retain the information reported pursuant to this section for a period of no less than five years. (f) Insurers that are members of the same insurance group may aggregate the information required by this section in a single report. (g) The reports required by this section shall not be applicable to any insurer that has been established for less than three years. (h) The reports required by this section shall be filed on a form provided by the commissioner no later than May 1 of the calendar year following the year for which the information is reported. (i) The department shall adopt regulations implementing this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code, except that for the purposes of Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code, any regulations adopted under this section shall be deemed to be necessary for the immediate preservation of the public peace, health and safety, or general welfare. These regulations shall remain in effect for 180 days. The regulations may require insurers to report the information required by subdivision (d) by categories other than those used by the Insurance Services Office. (j) The information provided pursuant to subdivision (a) shall be confidential and not revealed by the department, except that the commissioner may publish an analysis of the data in aggregate form or in a maturer which does not disclose confidential information about identified insurers or insureds. SECTION 62. Sections 1860.1 and 1860.2 of the Insurance Code are reenacted as follows: 1860.1. Applicability of other laws. No act done, action taken or agreement made pursuant to the authority conferred by this chapter shall constitute a violation of or grounds for prosecution or civil proceedings under any other law of this State heretofore or hereafter enacted which does not specifically refer to insurance. 1860.2. Applicability of other laws. The administration and enforcement of this chapter shall be governed solely by the provisions of this chapter. Except as provided in this chapter, no other law relating to insurance and no other provisions in this code heretofore or hereafter enacted shall apply to or be construed as supplementing or modifying the provisions of this chapter unless such other law or other provisions expressly so provides and specifically refers to the sections of this chapter which it intends to supplement or modify. SECTION 63. Section 11628.3 of the Insurance Code is reenacted as follows: Proposition 105: Text of Proposed Law Continued from page 107 84502. "Committee" means an~t committee, as defined in Section 82013 of the Government Code, which has made expenditures of ftfty thousand dollars ($50,000j or more, in support of or in opposition to, an initiative. 84503. "Advertisement" means any general or public advertisement which is authorized and paid for by a committee for the purpose of supporting or opposing an initiative. "Advertisement" does not include a communication from an organization to its members. 84504. "Industry" means those individuals and persons who derive economic benefit from the manufacture, sale, or distribution of a like or similar product, commodity, or service, including but not limited to professional services. 84505. "Person" means any individual, business, and any other organization or group of persons acting in concert. 84506. "Contributions" means the cumulative contributions ora committee for the period beginning with January 1 of the year prior to the year during which the initiative is to be voted upon and ending with the closing date for the campaign finance disclosure report whose ft'ling deadline precedes the dissemination to the public of an advertisement by seven days or more. A committee may optionally compute its contributions using only items required to be individually itemized on State campaign finance disclosure reports. G88 11628.3. Operators over 55; driver improvementcourse graduates,, reduction in premium. (a) Based on the actuarial and loss experience data available to each insurer, including the driving records of mature driver improvement course graduates, as recorded by the Department of Motor Vehicles, ~every admitted insurer shall provide for an appropriate percentage of reduction in premium rates for motor vehicle liability insurance for principal operators who are 55 years of age or older and who produce proof of successful completion of the mature driver improve- ment course provided for and approved by the Department of Motor Vehicles pursuant to Section 1675 of the Vehicle Code. (b) The insured shall enroll in and successfully complete the course described in subdivision (a) once every three years in order to continue to be eligible for an appropriate percentage of reduced premium. (c) The percentage of premium reduction required by subdivision (a) shall be reassessed by the insurer upon renewal of the insured's policy. The insured's eligibility for any percentage of premium reduction shall be effective for a three-year periodfrom the date of successful completion of the course described in subdivision (a), except that the insurer may discontinue the reduced premium rate if the insured is in any case: (1) Involved in an accident for which the insured is at fault, as determined by the insurer. (2) Convicted of a violation of Division 11 (commencing with Section21000) of the Vehicle Code, except Chapter 9 (commencing with Section 22500) of that division, or of a traffic related offense involving alcohol or narcotics. (d) The percentage of premium rate reduction required by subdivision (a) does not apply in the event the insured enrolls in, and successfully completes, an approved course pursuant to a court order provided for in Section 42005 of the Vehicle Code. Nothing in this subdivision precludes an insured from also enrolling in a driver improvement course. SECTION 64. Section 11628.4 of the Insurance Code is added as follows: 11628.4. Good driver discounts. Based on the actuarial and loss experience data aVailable to each insurer, every admitted insurer may provide for an appropriate: percentage of reduction in premium rates for motor vehicle liability insurance for good drivers who have not been involved in any accident in the last three years for which the insured was at fault, as determined by the insurer, and who have nbt been convicted within the last three years of a violation of Division 11 (commencing with Section 21000) of the Vehicle Code, except Chapter 9 (commencing with Section 22500) of that division, or ora traffic related offense involving alaohol or narcotics. SECTION 65. Section 12900 of the Insurance Code is reenacted as follows: 12900. Appointment,. term. The commissioner shall be appointed by the Govei'nor, with the consent of the Senate and shall hold office for a term of four years, Coextensive with the term of office of the Governor. SECTION66. Severability. Except as provided in Insurance Code Section 120170, if any provision enacted, reenacted or amended by this initiative or the application thereof to any person or circumstance is hem invalid, the invalidity shall not affect any other provisions enacted, reenacted or amended by this initiative or the application thereof which can be given effect without the invalid provision or application, and, to this end, except as provided in Insurance Code Section 12020, the provisions enacted, reenacted or amended by this initiative are deemed Severable. SECTION 67. Inconsistency with Other Initiatives. The provisions of this initiative constitute an integrated program of insurance reform and are intended to occupy theft'eM of insurance reform in the election in which they are adopted. If this initiative receives a higher number of votes than another initiative statute adopted at the same election as this initiative, such other initiative statute shall not have any force or effect to the extent that its provisions specifically relate to the business of insurance or the regulation of that business by this State. SEUTION 68. Amendment. Except as provided in section 20 of this initiative, the provisions of this initiative statute shall not be amended by the legislature except ky another statute passed in each house by roll call entered in the Journal, two-thirds of the membership concurring, or by another statute that becomes effectS'ye only when approved by the electorate. 84507. Any advertisement authorized by a committee shall include a statement that each of the following, where applicable, is a major funding source: (a) Any industry which is both the largest industry contributor to the committee and whose combined contributions to the Committee are five hundred thousand dollars ($502008) or more, or are fifty thousand dollars ($50,000) or more and constitute 25 percent or more of all -contributions. (b) A person whose contributions to the committee are one hundred thousand dollars ($100,090) or more and who is the largest coatributor, (c) Corporations as a group when their combined contributions to the commit- tee are one hundred thousand dollars ($100,000) or more and constitute 50 percent or more of all contributions, and unions as a grOup when their combined contributions to the committee are one hundred thousand dollars ($100,000) or more, and constitute 50 percent or more of all contributions. (d) Out-of-state contributors as a group, when their combined contributions to the committee are one hundred thousand dollars ($100,000) or more, and constitute 50% or more of all contributions. 84508. If there are more than two major funding sources, the committee is only required to disclose the first two applicable funding sources, in the order they are listed in in Section 84507. 84509. Any disclosure statement required by this chapter shall be printed clearly and legibly in a conspicuous manner, or, if the communication is broadcast, the information shall be spoken. 157 84310. If disclosure of two funding sources is required by Section 84507, the committee is only required to disclose one funding source on any advertisement which is: fa) an electronic broadcast advertisement of less than 25 second~, or (b) a newspaper, magazine, or other public print media advertisement which is less than 25 square inches. 84511. A committee may flle an amended campaign finance disclosure report with the Secretary of State at!any time, and may then change some or all of its advertisements to rdflect the Changed disclosure information. 84512. This chapter shall only apply to advertisements the contents of which are more than ~9 percent devoted to one initiative. 84513. The Fair Political Practices Commission (the Commission) shall issue regulations to implement this Article, 84514. The sole remedy for violation of this Article is that any person who violates this Am'vie is liable in a civil action brought by the Commission, or by any person, for a fine of three times the cost of the advertisement, including placement casts. SECTION §. Article § (commencing with Section 1~§1) is added to Chapter $ of Part 2 of Division $ of Title 2 of the Government Code, to read: Article 6. Anti-Apartheid Disclosure 12261. fa) "Commonly owned corporation. "A subsidiary corporation is a "commonlg/ owned corporation" in its relation to ang/ other corporation which is owned by the same parent corporation. (b) "Corporation selling stocks" means any corporation or financial institution selling stocks or securities which is required by law to issue a prospectus or similar informational statement to the buyer. (c) "Parent corporation" means a corporation which has power either directly or indirectly or through another corporation or series of corporations to elect a majoritg/ of the directors of another corporation. (d) "Subsidianj corporation" means a corporation which is subject to a parent corporation which has power either directly or indirectly or through another corporation or series of othe~ corporations to elect a majoritg/ of its directors. 1£262. All corporations $elling stocks in California must disclose on the prospectus, for each of the fOllowing categories, whether or not the following are doing business in South Af?ica or with any person or group located in South Afdca: fa) The corporation. (b) One or more of the corporation's parent corporations or subsidiary corporations. (c) One or more of the corporation 's commonly owned corporations. 12263. All disclosures pursuant to Section 12262 shall indicate that the information is only accurate when the prospectus was written, that the buyer may contact the Secretary of State for updated information, and shall give the Secretary of State's address and phone number. 12264. All corporations shall, prior to selling stock in Ualifornia, file a copg/ of the notice required by Section 12262 with the Secretary of State. 12265. Changes in status for any of the categories listed in Section 12262 shall be reported witldn $0 days to the Secretary of State. 12266. The Secretary of State shall adopt regulations to implement this section, including regulations governing the form in which the disclosures required by this article shall be made and the manner in which the Secretary of State shall make available the information acquired pursuant to this article. 1226Z The remedies for violations of this Article are as provided in Govern- ment Code Section 12~69. SECTION 7. Section 1~69 is added to the Government Code, to read: 12269. The sole remedies for violations of the following provisions of this Act shall be fines often thousand dollars ($10,~ 00) for each advertisement, contract or prospectus which violates this Act. The provisions are: Article 10 (commencing with Section 667~9) of Chapter 3 of Title 7.3 of the Government Code; Sections 10195.1-10195.8 of the Insurance Code; Chapter 3.95 (commencing with Section 15~.85) of Division 2 of the Health and Safetg/ Code; and Article 6 (commencing with SeCtion 12261) of Chapter 3 of Part 2 of Division 3 of Title 2 of the Government Code. For purposes of this Act, multiple copies of the same advertisemen¢ contract or prospectus shall count as one violation. A ny person mag/ bring an action in Superior Court to impose any fine Pursuant to this Act. Fines shall be deposited to the General Fund of the State. SECTION 8. If any provision of this Act or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the Act which can be given effect without ihe invalid prow'sion or application, and to this end the provisions df this Act are severable. SECTION 9. Ndthing in this Act shall alter or diminish ang/ legal obligation otherwise required in common law or by statute or regulation. Fines imposed under this Act shall be in addition to any penalties or sanctions otherwise prescribed by law. The disclosures required by this Act shall be without prejudice to the enactment of statutes or adoption of regulations to provide for additional disclosures. SECTION 10. To further its purposes, this initiative may be amended by statute, passed in each house bg/ a two-thirds vote. SECTION IL This Act shall take effect upon adoption by the people, but the substantive provisions shall not become operative until January I of the second year following passage of this Act. The administrative agencies shall adopt the regulations specified by this Act as soon as is reasonably possible, but in no event later than the operative date of this Act. 158 G88 Political Party Statements of Purpose Democratic Party After eight years of prosperity for the few and uncertainty for the many--all paid for by a staggering national debt which threatens the future of our children, Americans are seeking a new vision, a new direction. The California Democratic Party offers a program of growth and stability, peace and environmental safety, justice and equality. Our 1988 program presents candidates and a platform to rebuild and revitalize our country. As a citizen of the United States, you are part of this vision. As a voting citizen, you can help make it happen. We support: · Quality education for all. · Equality of opportunity regardless of race, age, sex, or wealth, so that each individual and each family may reach the limits of their potential. · A strong economy where American jobs are no longer exported to foreign countries, where American workers can earn the wa~es necessary to support their families, where no one is among the homeless. · A society where the health care for our citizens, and especially our children and our elderly, is an obligation we fully discharge. · Balancing strong laws to stop criminals and care for victims while insuring privacy and individual rights. · Improved international relations and world peace. For more information, please write or call the California Democratic Party, 5711 W. Slauson, Suite 210, Culver iCity, CA 90230, (213) 649-2944. PETER D. KELLY, State Chair Republican Party For the past eight years, Republican principles and policies have been creating jobs, stimulating economic growth, and bringing prosperity to America. They have swept away the "malaise" of the last decade, replacing it with hope, purpose, and confidence. What are those principles? Republicans believe in individual rights and in the duty of all citizens to assume the responsibilities of self-government. Republicans believe that a government big enough to give us everything we need is big enough to take everything we have. Republicans believe that American free enterprise and individual initiative have given greater prosperity for more people more fairly and more widely distributed than has any other economic system at any time, anywhere. Republicans believe that to promise to deliver people from want by destroying the very source of our prosperity--free enterprise--through crushing tax increases and bloated bureaucracy is hypocritical and immoral. Republicans believe in sound management of taxpayers' dollars. The huge federal deficit was created by liberals trying to use government spending, rather than the energies of the American people, to solve our problems. Republicans support--and liberals oppose--a balanced budget amendment and a line-item veto. Republicans believe in a strong defense to preserve freedom and to achieve peace through strength. We reject liberal isolationism and "blame America first" pessimism. We believe in the rights of crime victims as well as those of defendants, in just punishment for heinous crimes, and in judges who rule, not according to their personal politics, but according to the law. The first Republican president, Abraham Lincoln, established ours as the party of equal rights, justice, and opportunity for all regardless of race, creed, sex, or national origin. The Republican message of hope, opportunity, family values, and individual rights is a positive, open, inclusive message for anyone who loves freedom, believes in individual responsibility, and desires a government the people control. ROBERT W. NAYLOR, State Chair American Independent Party America faces a number of crucial issues to which the major parties refuse to address themselves in spite of increasingly insistent demands by the American people. The American Independent Party presents the following solutions to these critical issues, which we deem to be the most important concerns in this critical and dangerous time in American history. Only the American Independent Party recognizes the imperative need for these alternatives to the continued surrender to profit from private control of our currency, high interest rates, and exorbitant and artificial national debt. We believe in: The repeal of the federal income tax on individuals; The enactment of tariff laws which will rejuvenate American industry and protect the living standard of our working men and women; The restriction of immigration to protect the jobs of American workers; The restoration of the "America First" tradition of non-involvement in foreign wars; Revitalization of the family farm in America; Protection of the right o flaw-abiding citizens to keep and bear arms. We invite you to register with the American Independent Party and help keep America First. FOr further information call (415) 355-3037. NICHOLAS W. KUDRqVZEFF, State Chairman Libertarian Party The goal of the Libertarian Party is liberty. The principles which guide the Party are the same principles which sparked the American Revolution: that people have the rights to life, liberty, and property, and that government must never violate these rights. Instead, government has mushroomed in size, and its policies have been disastrous. Regulation, taxation, and government spending have soared ever higher for 50 years. The government has pursued a foreign policy of global intervention, supporting foreign rulers with American lives and money. Our personal freedoms have been constantly eroded. At no other time in American history has the average citizen been so taxed, regulated, registered, licensed, numbered, told what to do, and told what not to do. More and more, the role of people once considered public servants has changed to public masters. Presiding over this, without a dime's worth of difference between them, have been the Democrats and Republicans. Not only are they incapable of making significant change, but they don't want to, since they have become the willing partners of special interests of all kinds who seek favor in the halls of city, state, and federal government. Because of its principled stands, the Libertarian Party is now the third largest political party in America, and growing daily. For a free information packet, call 1-800-637-1776. TED BROWN, State Chairman Peace & Freedom Party Born 20 years ago, out of the struggles for civil rights and against the war in Vietnam, Peace & Freedom Party today has expanded those ideals to include: · end the arms race, both nuclear and conventional · withdraw U.S. troops and weapons from other countries · conversion from a military to a peace-oriented economy · socially useful jobs at union pay levels for all · guaranteed dignified income for those who cannot work · full education and employment rights for the disabled · end discrimination based on race, sex, sexual preference, age or disability · full rights of citizenship for undocumented workers · equal pay for equal work and for work of comparable worth · a 30-hour work week at 40 hours' pay · social ownership and democratic management of industry and natural resources · restore and protect clean air, water, land and ecosystems · free, high-quality comprehensive health care for all people; free birth control upon request, including abortion; no forced sterilizations · massive development of free public transpOrtation · decent, secure housing affordable for all people · defend and extend liberties guaranteed in the Bill of Rights, and · democratic elections through proportional representation. For more information, call (408) 248-5225 or write to P.O. Box 2325, Aptos, CA 95001. MAUREEN SMITH, State Chair G88 88 78,2~ ~ 159 lSXl~Uv OA!lglS!~O~I oql Aq sosXlgUv olglS }o A:tglo:~aoS oql Aq pol!dmoD '~LLOA-Sff£-008-! ~U!lleO Xq ao ao!jjo suo!~oala Xlunoo anoX mo,~3 auo u!e;qo OSle ueo no,( 'palu!ad s! ;alqdmed Imuam 'alddns ~ JI 'e!ua°J!leD moq~noaqa saad~dsa~au u! paau!ad aq II!A~ aO noX oa pal!em aq ll!m aeqa lalqdmed ~olI~q lmuamalddns e m papnlou! aq 1I!~ '886I 'I ;sn~nv .~aaje ao uo a.mlels!~aq aqa Xq paldope aq ;qfl!tu aeq; saanseam Xu~ ~u!pae~aa uo!aem./ojuI saoaoA o~ ov!~oN ~um.~odmI