Prop Spotlight: Prop 70 - Vote Requirement to Use Cap and Trade Funds Amendment
The CFRW Recommends a NO Vote
Ballot Title: Requires Legislative Supermajority Vote Approving Use of Cap-and-trade Reserve Fund. Legislative Constitutional Amendment
- Beginning in 2024, cap-and-trade revenues will accumulate in a reserve fund.
- These cap-and-trade revenues cannot be used unless the Legislature authorizes such use by a two-thirds majority.
- On the effective date of any such authorization, the requirement that new revenues accumulate in this reserve fund will expire.
- Suspends certain tax exemptions, including for equipment used in manufacturing and research and development, beginning in 2024, until the effective date of any such authorization
AB 32 was passed in 2006. It created California’s Cap and Trade program, whereby the California Air Resources Board monitors and regulates the greenhouse gas emissions of businesses with the goal of 1990 levels by 2020. Last year, the legislature passed AB 398 to extend Cap and Trade to 2030, giving CARB regulating powers once more. AB 398 needed a 2/3rds vote in each chamber to pass. A deal was struck and 8 Republicans (7 Assembly members and 1 Senator) voted for the extension of Cap and Trade in exchange for a repeal of the Fire Tax (until 2031) and Prop 70 being on the June ballot.
- Prop 70 is a straw man. The “if we don’t pass it, we might get something worse” argument doesn’t work here. This was a bad deal that a few Republicans made, allowing three vulnerable Democrats to vote against the Cap and Trade extension.
- There is no guarantee that the Cap and Trade funding will be allocated in any way that benefits taxpayers. There is also no guarantee that it will not be sent to fund the High Speed Rail project.
- Again, there is also no guarantee that a 2/3rds vote in both chambers will be a bi-partisan vote. Republicans are currently in the super-minority, so a measure like this would do nothing to protect taxpayers or provide bi-partisanship.
- It is time for Californians to stand up to the legislative Democrat bullying. This deal was made with broad Democrat support, and now virtually every legislative Democrat except Governor Jerry Brown opposes it. The Republicans who made this deal were duped. This might sound like enough reason to support Prop 70, but a message should be sent to Sacramento. Duplicitous back-room deals should not be tolerated from EITHER party.
Official CFRW Positions
- Prop 68: NO
- Prop 69: NO
- Prop 70: NO
- Prop 71: YES
- Prop 72: YES
June Ballot Measures
Proposition 68: California Parks, Environment, and Water Bond- would issue a $4 billion general obligation bond, with a 3.5% interest rate over 30 years, bringing the bill to the taxpayers up to $6.4 billion total. The CFRW says vote NO.
Proposition 69: Transportation Taxes and Fees Lockbox and Appropriations Limit Exemption Amendment- states that Senate Bill 1 revenue from diesel taxes will be placed in a “lockbox” and used only for transportation fund purposes. The CFRW says vote NO.
Proposition 70: Vote Requirement to Use Cap and Trade Funds Amendment- would require a one-time vote in 2024 by a 2/3rds legislative majority to allocate state Cap and Trade program revenue. The CFRW says NO.
Proposition 71: Effective Date of Ballot Measures Amendment- changes the date for when voter approved ballot measures take effect from the day after the election to the fifth day after the Secretary of State certifies the election. The CFRW says vote YES.
Proposition 72: Rainwater Capture Systems Excluded from Property Tax Assessment- would exclude any new rainwater capture structures from property value tax reassessment from counting as a new structure. The CFRW says vote YES.
If you would like ALL the talking points for each proposition, please email our Advocate at firstname.lastname@example.org. It is a large file, but we will be publishing all 5 propositions’ talking points closer to the election.
SUPPORT SB 1485: The Universal Charitable Tax Credit!
SB 1485 (Morrell, R), the Universal Charitable Tax Credit, is long overdue! The bill language reads, “The Personal Income Tax Law allows various credits against the taxes imposed. This bill, under the Personal Income Tax Law for taxable years beginning on or after January 1, 2018, would establish the California Universal Charitable Credit to allow a credit equal to the amount contributed by the taxpayer for the taxable year to a qualified charitable organization, resulting in significant financial and civic benefits for our state. This bill would require the Franchise Tax Board to compile a list of qualifying charitable organizations, and create forms for taxpayers to obtain the credit for contributions to qualifying charitable organizations.”
The government should not be a charitable organization. But the government can and should encourage taxpayers to support charities through tax credits. The Universal Charitable Tax Credit would allow taxpayers to choose to give to qualified nonprofits, up to $500, for a state tax credit of the same amount. It’s a win-win! SB 1485 will be heard in the Senate Governance and Finance Committee on May 9th. Please call these committee members and let them know you SUPPORT SB 1485!
From Senator Morrell's office: How can you support SB 1485 (Morrell) the Universal Charitable Tax Credit?
Write and Email Letter of support to:
Senator Mike Morrell Attn: Rebecca Ann Fontaine, Legislative Director at Rebecca.email@example.com
Write letters to: Senator Mike Morrell; State Capitol, Room 3056; Sacramento, CA 95814
Call your Senators on the Governance and Finance Committee: “I am calling to express my support for SB 1485, Senator Mike Morrell’s Universal Charitable Tax Credit that is being heard in the Senate Governance and Finance Committee on May 9th , and I hope that Senator ________________ will also support SB 1485. Thank you.
Find your California State Senator at: ◼ http://findyourrep.legislature.ca.gov
Senator Mike McGuire: (Chair) Capitol: (916) 651-4002
Senator Jim Beall Capitol: (916) 651-4015
Senator, Dr. Ed Hernandez Capitol: (916) 651-4022
Senator Robert M. Hertzberg Capitol: (916) 651-4018
Senator Ricardo Lara Capitol: (916) 651-4033
3. Show up in support at the Senate Governance and Finance Committee hearing on May 16th , 2018 at 9:30 a.m. California State Capitol, 1303 10th Street, Sacramento, CA 95814, Room 112 on the historic side of the building!!!
Social Media Censorship
SB 1424 is being heard in the Senate Judiciary Committee on May 8th! As you will recall, SB 1424 would mandate that social media applications (like Facebook and Twitter) enlist a small army of “fact-checkers” to censor your information! CLICK HERE for last week’s summary of SB 1424. If your Senator is on the Senate Judiciary Committee, call them next week and ask them to VOTE NO on SB 1424! Find your Senator ◼ HERE.
Senate Judiciary Committee
◼ Senator Hannah-Beth Jackson (Chair): D-19th, (916) 651-4019
◼ Senator John M. W. Moorlach (Vice Chair): R-37th, (916) 651-4037
◼ Senator Joel Anderson: R- 38th, (916) 651-4038
◼ Senator Robert M. Hertzberg: D-18th, (916) 651-4018
◼ Senator Bill Monning: D-17th, (916) 651-4017
◼ Senator Henry I. Stern: D-27th, (916) 651-4027
◼ Senator Bob Wieckowski: D-10th, (916) 651-4010
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Disclaimer: The Capitol Update is an activity of the CFRW Advocate's Office. The update is for information only. CFRW official positions on legislation are stated immediately preceding the stated legislation or immediately following the stated legislation in this report.