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U N I T E D C O N T R A C T O R S G U I D E T O C A L I F O R N I A 2 0 1 2 B A L L O T I N I T I AT I V E S

NOVEMBER 2012 STATEWIDE BALLOT INITIATIVES I N I T I AT I V E P O S I T I O N R E C O M M E N D AT I O N S

Contributed by: United Contractors Government Relations Committee, Director of Government Relations, Emily Cohen, and United Contractors Legislative Advocate, Kevin Pedrotti

United Contractors has created this November 2012 Voters’ Guide with your business and our industry in mind. With the input and agreement of our Government Relations Committee, Board of Directors and staff, long and hard about what is best for the state and fate of our industry. it is meant to help you gain information and insights into the ballot With this Voters’ Guide, you can be assured that no other factors come measures that will have direct impacts on our industry. into play. We are focused on strengthening California’s construction industry—nothing else. On November 6, 2012 you will have ten ballot measures in front of you. You will have a say on everything from taxes (twice, in fact) to the As your Director of Government Relations and your Legislative state budgeting process; from political money to food labeling; from Advocate, and on behalf of United Contractors Government Relations human trafficking to auto insurance. This November’s ballot will be long and cumbersome, but the issues are significant. Make no mistake Committee and Board of Directors, we strongly encourage you to take a good look at each of the initiatives on this year’s ballot. Many of them —many of these ballot measures will have real consequences for California will entail significant policy changes in California, and will impact your business and your pocket book. These are major decisions and our industry. that can help or hurt our industry as we attempt to navigate Whether we have taken a “Yes,” through such incredibly challenging and difficult times. a “No,” or a “Neutral” position, UCON has thought Let’s make sure industry has a voice. Vote!

2 0 1 2 C A L I F O R N I A B A L L O T I N I T I AT I V E S PROPOSITION 30

Jerry Brown’s Tax Increase: Temporary Taxes to Fund Education, Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment. Increases personal income tax on annual earnings over $250,000 for seven years. Increases sales and use tax by ¼ cent for four years. Allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community colleges. Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are spent. Guarantees funding for public safety services realigned from state to local governments.1

On one hand: Prop 30 is the only initiative which addresses the state’s chronic budget mess. CA cannot balance the budget on cuts-only without drastically harming the state. Prop 30’s taxes are temporary, balanced and necessary for vital state service. This measure will help stabilize the state budget. On the other: Politicians and special interests want to continue their out-of-control spending, but not make meaningful reforms. Tax increases will harm industry businesses and hamstring job growth. The tax rate is already high enough – and many would argue it’s too high.

UNITED CONTRACTORS: NEUTRAL


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PROPOSITION 31

Two-Year Budget Cycle: State Budget. State and Local Government. Initiative Constitutional Amendment and Statute. Establishes two-year state budget cycle. Prohibits Legislature from creating expenditures of more than $25 million unless offsetting revenues or spending cuts are identified. Permits Governor to cut budget unilaterally during declared fiscal emergencies if Legislature fails to act. Requires performance reviews of all state programs. Requires performance goals in state and local budgets. Requires publication of all bills at least three days prior to legislative vote. Allows local governments to alter how laws governing state-funded programs apply to them, unless Legislature or state agency vetoes change within 60 days.2

PROPOSITION 32

Ban on Corporate & Union Contributions to State & Local Candidates: Prohibits Political Contributions by Payroll Deduction. Prohibitions on Contributions to Candidates. Initiative Statute Prohibits unions from using payroll-deducted funds for political purposes. Applies same use prohibition to payroll deductions, if any, by corporations or government contractors. Permits voluntary employee contributions to employer-sponsored committee or union if authorized yearly, in writing. Prohibits unions and corporations from contributing directly or indirectly to candidates and candidate-controlled committees. Other political expenditures remain unrestricted, including corporate expenditures from available resources not limited by payroll deduction prohibition. Prohibits government contractor contributions to elected officers or officer-controlled committees.3

If Prop. 31 became law, billions of dollars would be prevented from being spent without public review or citizen oversight. Prop 31 forces politicians to finally live within their means and holds them accountable for their actions by requiring a real balanced budget. Prop. 31 establishes a “pay-as-you-go” system that creates accountability, increased responsibility, and transparency from Legislators, while giving local governments more power over regulations.

UNITED CONTRACTORS: YES

On one hand: Prop. 32 would provide simple straightforward reforms, and cut the money between special interest groups and politicians. Prop. 32 stops special interests from taking political deductions from employee paychecks to guarantee every dollar given for politics is strictly voluntary. On the other: Prop. 32 will not take all of the money out of politics, and exempts business Super PACs and independent expenditure committees from Prop. 32’s controls. Some argue that Prop. 32 would make things worse by not stopping corporate special interests.

UNITED CONTRACTORS: NEUTRAL


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UNITED CONTRACTORS TAKES A “NEUTRAL” POSITION ON THE FOLLOWING PROPOSITIONS NOT DIRECTLY RELEVANT TO INDUSTRY: PROPOSITION 33

Persistency Discounts: Changes Law to Allow Auto Insurance Companies to Set Prices Based on a Driver ’s History of Insurance Coverage.

PROPOSITION 34

End the Death Penalty: Repeals death penalty as maximum punishment for persons found guilty of murder and replaces it with life imprisonment without possibility of parole.

PROPOSITION 35

Prohibition on Human Trafficking & Sex Slavery: Increases criminal penalties for human trafficking,

PROPOSITION 38

Molly Munger ’s State Income Tax Increase: Tax for Education and Early Childhood Programs. Initiative Statute. Increases personal income tax rates for annual earnings over $7,316 using sliding scale from .4% for lowest individual earners to 2.2% for individuals earning over $2.5 million, ending after twelve years. During first four years, 60% of revenues go to K-12 schools, 30% to repaying state debt, and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K-12 schools, 15% to early childhood programs. Provides K-12 funds on school specific, per-pupil basis, subject to local control, audits, and public input. Prohibits state from directing or using new funds.4

including prison sentences up to 15-years-to-life and fines up to $1,500,000.

PROPOSITION 36

Repeal of the ‘Three Strikes’ Law: Revises three strikes law to impose life sentence only when new felony conviction is serious or violent.

PROPOSITION 37

Mandatory Labeling of Genetically Engineered Food: Requires labeling on raw or processed food offered for sale to consumers if made from plants or animals with genetic material changed in specified ways.

If Prop. 38 became law, there would be a massive tax hike for middle class tax payers and small businesses. Taxpayers would be locked into higher taxes until 2024, with virtually no accountability as to how the money is spent and no requirements to improve performance or get rid of bad teachers.

UNITED CONTRACTORS: NO


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PROPOSITION 39

Income Tax Increase for Multistate Businesses: Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statute. Requires multistate businesses to calculate their California income tax liability based on the percentage of their sales in California. Repeals existing law giving multistate businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California. Dedicates $550 million annually for five years from anticipated increase in revenue for the purpose of funding projects that create energy efficiency and clean energy jobs in California.5

PROPOSITION 40

Referendum for State Senate Redistricting Plan: Redistricting. State Senate Districts. Referendum. State Senate districts are revised every 10 years following the federal census. This year, the voter-approved California Citizens Redistricting Commission revised the boundaries of the 40 Senate districts. A “Yes” vote approves, and a “No” votes rejects, new State Senate districts drawn by the Citizens Redistricting Commission. If the new districts are rejected, the State Senate district boundary lines will be adjusted by officials supervised by the California Supreme Court.6

On one hand: Prop. 39 levels the playing field, ensuring that multi-state companies play by the same rules as California employers. Prop. 39 eliminates the out-of-state tax loophole, which in return benefits California’s job market and taxpayers. On the other: California is already losing business at a record rate, and Prop. 39 is a $1 billion tax increase that will result in the loss of thousands of additional jobs. Energy efficiency projects are already funded at a significant level, Prop. 39 could be a recipe for waste and corruption.

UNITED CONTRACTORS: NEUTRAL

United Contractors is a supporter of the voterapproved, non-partisan, Citizens Redistricting Commission—approved in 2010. If Prop. 40 becomes law, the will of the Citizens Redistricting Commission will be upheld and current State Senate districts retained.

UNITED CONTRACTORS: YES

For additional initiative information, analysis and further pro/con arguments, contact United Contractors at (925) 855-7900. W W W. U N I T E D C O N T R A C T O R S . O R G

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http://voterguide.sos.ca.gov/


Ballot Initiatives 2012