The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

The California Constitution requires appropriations from the General Fund of the state to be passed by a ²/₃ vote of the membership of each house of the Legislature and requires a majority vote to pass appropriations for the public schools and appropriations in the Budget Bill and in other bills providing for appropriations related to the Budget Bill.

This measure would create the Greenhouse Gas Reduction Reserve Fund, in which all moneys collected by the state board as part of a market-based compliance mechanism beginning January 1, 2024, and until the effective date of specified legislation would be deposited. The measure would require all moneys in the fund to be available upon appropriation for specified purposes and would require a bill making those appropriations to be passed by a ²/₃ vote of the membership of each house of the Legislature. The measure would require all new moneys collected as part of a market-based compliance mechanism after the effective date of that specified legislation to be deposited in the Greenhouse Gas Reduction Fund. The measure would prohibit a specified sales tax exemption from being applied until the effective date of that specified legislation.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

The California Constitution requires appropriations from the General Fund of the state to be passed by a ²/₃ vote of the membership of each house of the Legislature and requires a majority vote to pass appropriations for the public schools and appropriations in the Budget Bill and in other bills providing for appropriations related to the Budget Bill.

This measure would create the Greenhouse Gas Reduction Reserve Fund, in which all moneys collected by the state board as part of a market-based compliance mechanism beginning January 1, 2024, and until the effective date of specified legislation would be deposited. The measure would require all moneys in the fund to be available upon appropriation for specified purposes and would require a bill making those appropriations to be passed by a ²/₃ vote of the membership of each house of the Legislature. The measure would require all new moneys collected as part of a market-based compliance mechanism after the effective date of that specified legislation to be deposited in the Greenhouse Gas Reduction Fund. The measure would prohibit a specified sales tax exemption from being applied until the effective date of that specified legislation.

The California Constitution provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes thereon takes effect the day after the election unless the measure provides otherwise. Existing law requires the Secretary of State to compile the results of all statewide measures, and to prepare, certify, and file a statement of the vote from the compiled results no later than the 38th day after the election.

This measure would instead provide that an initiative statute, a referendum, or a constitutional amendment or revision approved by a majority of votes thereon takes effect 5 days after the Secretary of State files the statement of the vote for the election at which the measure is voted on, and the measure clarifies that an initiative statute, referendum, or constitutional amendment or revision may provide that it becomes operative after its effective date. The measure would also make nonsubstantive changes to these provisions.

The California Constitution provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes thereon takes effect the day after the election unless the measure provides otherwise. Existing law requires the Secretary of State to compile the results of all statewide measures, and to prepare, certify, and file a statement of the vote from the compiled results no later than the 38th day after the election.

This measure would instead provide that an initiative statute, a referendum, or a constitutional amendment or revision approved by a majority of votes thereon takes effect 5 days after the Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. on, and the measure clarifies that an initiative statute, referendum, or constitutional amendment or revision may provide that it becomes operative after its effective date. The measure would also make nonsubstantive changes to these provisions.

The California Constitution provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes thereon takes effect the day after the election unless the measure provides otherwise. Existing law requires the Secretary of State to compile the results of all statewide measures, and to prepare, certify, and file a statement of the vote from the compiled results no later than the 38th day after the election.

This measure would instead provide that an initiative statute, a referendum, or a constitutional amendment or revision approved by a majority of votes thereon takes effect 5 days after the Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. The measure would also make nonsubstantive changes to these provisions.

WHEREAS, The California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) establishes statewide targets for reducing greenhouse gases that cause global warming to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030; and

WHEREAS, The State Air Resources Board adopted the market-based compliance mechanism, known as the Cap-and-Trade Program, which is the most cost-effective means to assist the state in reaching the statewide emissions reduction targets by allocating allowances to represent greenhouse gas emissions and decreasing the number of allowances over time; and

WHEREAS, The market-based compliance mechanism includes the distribution of a portion of the allowances by auction and reserve sales, the proceeds of which the Legislature has directed to be deposited in the Greenhouse Gas Reduction Fund; and

WHEREAS, The projects funded by moneys derived from the auction or sale of allowances, among other things, assist farmers in making changes needed to reduce emissions; enable residents to invest in energy efficiency and renewable energy upgrades; improve air quality for millions of residents, especially in our most polluted communities; support low- and zero-carbon transportation alternatives and sustainable communities; and enhance natural resources, including healthy forests and parks; and

WHEREAS, Moneys from the sale of allowances must continue to achieve additional emissions reductions and provide benefits to low-income and disadvantaged communities; and

WHEREAS, It is vital to protect the integrity of the Cap-and-Trade Program; and

WHEREAS, The Legislature, representing a diverse range of Californians, should assess the efficacy of the programs funded by the Cap-and-Trade Program to ensure those programs are furthering the states ambitious plan to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030; now, therefore, be it

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended as follows:

(a)The Greenhouse Gas Reduction Reserve Fund is hereby created as a special fund in the State Treasury.

(b)For the time period specified in subdivision (d) only, all moneys collected by the State Air Resources Board from the auction or sale of allowances pursuant to a market-based compliance mechanism established pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) shall be deposited in the Greenhouse Gas Reduction Reserve Fund.

(c)Notwithstanding any other provision of this Constitution, moneys in the Greenhouse Gas Reduction Reserve Fund shall be available upon appropriation by the Legislature by rollcall vote entered in the journal, two-thirds of the membership of each house concurring, for the same purposes applicable on January 1, 2024, to the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(d)Subdivision (b) shall apply beginning January 1, 2024, and until the effective date of legislation that contains an appropriation from the Greenhouse Gas Reduction Reserve Fund. After the effective date of that legislation, all new moneys collected pursuant to a market-based compliance mechanism shall be deposited in the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(e)Section 6377.1 of the Revenue and Taxation Code shall not apply to sales that occur while the moneys specified in subdivision (b) are being deposited in the Greenhouse Gas Reduction Reserve Fund, but shall resume on the effective date of legislation identified in subdivision (d).

WHEREAS, The California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) establishes statewide targets for reducing greenhouse gases that cause global warming to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030; and

WHEREAS, The State Air Resources Board adopted the market-based compliance mechanism, known as the Cap-and-Trade Program, which is the most cost-effective means to assist the state in reaching the statewide emissions reduction targets by allocating allowances to represent greenhouse gas emissions and decreasing the number of allowances over time; and

WHEREAS, The market-based compliance mechanism includes the distribution of a portion of the allowances by auction and reserve sales, the proceeds of which the Legislature has directed to be deposited in the Greenhouse Gas Reduction Fund; and

WHEREAS, The projects funded by moneys derived from the auction or sale of allowances, among other things, assist farmers in making changes needed to reduce emissions; enable residents to invest in energy efficiency and renewable energy upgrades; improve air quality for millions of residents, especially in our most polluted communities; support low- and zero-carbon transportation alternatives and sustainable communities; and enhance natural resources, including healthy forests and parks; and

WHEREAS, Moneys from the sale of allowances must continue to achieve additional emissions reductions and provide benefits to low-income and disadvantaged communities; and

WHEREAS, It is vital to protect the integrity of the Cap-and-Trade Program; and

WHEREAS, The Legislature, representing a diverse range of Californians, should assess the efficacy of the programs funded by the Cap-and-Trade Program to ensure those programs are furthering the states ambitious plan to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030; now, therefore, be it

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended as follows:

(a)The Greenhouse Gas Reduction Reserve Fund is hereby created as a special fund in the State Treasury.

(b)For the time period specified in subdivision (d) only, all moneys collected by the State Air Resources Board from the auction or sale of allowances pursuant to a market-based compliance mechanism established pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) shall be deposited in the Greenhouse Gas Reduction Reserve Fund.

(c)Notwithstanding any other provision of this Constitution, moneys in the Greenhouse Gas Reduction Reserve Fund shall be available upon appropriation by the Legislature by rollcall vote entered in the journal, two-thirds of the membership of each house concurring, for the same purposes applicable on January 1, 2024, to the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(d)Subdivision (b) shall apply beginning January 1, 2024, and until the effective date of legislation that contains an appropriation from the Greenhouse Gas Reduction Reserve Fund. After the effective date of that legislation, all new moneys collected pursuant to a market-based compliance mechanism shall be deposited in the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(e)Section 6377.1 of the Revenue and Taxation Code shall not apply to sales that occur while the moneys specified in subdivision (b) are being deposited in the Greenhouse Gas Reduction Reserve Fund, but shall resume on the effective date of legislation identified in subdivision (d).

WHEREAS, The California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) establishes statewide targets for reducing greenhouse gases that cause global warming to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030; and

WHEREAS, The State Air Resources Board adopted the market-based compliance mechanism, known as the Cap-and-Trade Program, which is the most cost-effective means to assist the state in reaching the statewide emissions reduction targets by allocating allowances to represent greenhouse gas emissions and decreasing the number of allowances over time; and

WHEREAS, The market-based compliance mechanism includes the distribution of a portion of the allowances by auction and reserve sales, the proceeds of which the Legislature has directed to be deposited in the Greenhouse Gas Reduction Fund; and

WHEREAS, The projects funded by moneys derived from the auction or sale of allowances, among other things, assist farmers in making changes needed to reduce emissions; enable residents to invest in energy efficiency and renewable energy upgrades; improve air quality for millions of residents, especially in our most polluted communities; support low- and zero-carbon transportation alternatives and sustainable communities; and enhance natural resources, including healthy forests and parks; and

WHEREAS, Moneys from the sale of allowances must continue to achieve additional emissions reductions and provide benefits to low-income and disadvantaged communities; and

WHEREAS, It is vital to protect the integrity of the Cap-and-Trade Program; and

WHEREAS, The Legislature, representing a diverse range of Californians, should assess the efficacy of the programs funded by the Cap-and-Trade Program to ensure those programs are furthering the states ambitious plan to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030; now, therefore, be it

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended as follows:

(a)The Greenhouse Gas Reduction Reserve Fund is hereby created as a special fund in the State Treasury.

(b)For the time period specified in subdivision (d) only, all moneys collected by the State Air Resources Board from the auction or sale of allowances pursuant to a market-based compliance mechanism established pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) shall be deposited in the Greenhouse Gas Reduction Reserve Fund.

(c)Notwithstanding any other provision of this Constitution, moneys in the Greenhouse Gas Reduction Reserve Fund shall be available upon appropriation by the Legislature by rollcall vote entered in the journal, two-thirds of the membership of each house concurring, for the same purposes applicable on January 1, 2024, to the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(d)Subdivision (b) shall apply beginning January 1, 2024, and until the effective date of legislation that contains an appropriation from the Greenhouse Gas Reduction Reserve Fund. After the effective date of that legislation, all new moneys collected pursuant to a market-based compliance mechanism shall be deposited in the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(e)Section 6377.1 of the Revenue and Taxation Code shall not apply to sales that occur while the moneys specified in subdivision (b) are being deposited in the Greenhouse Gas Reduction Reserve Fund, but shall resume on the effective date of legislation identified in subdivision (d).

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201617 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

(a)An initiative statute or referendum approved by a majority of votes cast thereon takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on, but the measure may provide that it becomes operative after its effective date. If a referendum petition is filed against a part of a statute, the remainder of the statute shall not be delayed from going into effect.

(b)If provisions of two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative votes shall prevail.

(c)The Legislature may amend or repeal a referendum statute. The Legislature may amend or repeal an initiative statute by another statute that becomes effective only when approved by the electors unless the initiative statute permits amendment or repeal without the electors approval.

(d)Before circulation of an initiative or referendum petition for signatures, a copy shall be submitted to the Attorney General who shall prepare a title and summary of the measure as provided by law.

(e)The Legislature shall provide for the manner in which a petition shall be circulated, presented, and certified, and the manner in which a measure shall be submitted to the electors.

A proposed amendment or revision shall be submitted to the electors and, if approved by a majority of votes casts thereon, takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on, but the measure may provide that it becomes operative after its effective date. If provisions of two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative votes shall prevail.

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201617 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

(a)An initiative statute or referendum approved by a majority of votes cast thereon takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. on, but the measure may provide that it becomes operative after its effective date. If a referendum petition is filed against a part of a statute, the remainder of the statute shall not be delayed from going into effect.

(b)If provisions of two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative votes shall prevail.

(c)The Legislature may amend or repeal a referendum statute. The Legislature may amend or repeal an initiative statute by another statute that becomes effective only when approved by the electors unless the initiative statute permits amendment or repeal without the electors approval.

(d)Before circulation of an initiative or referendum petition for signatures, a copy shall be submitted to the Attorney General who shall prepare a title and summary of the measure as provided by law.

(e)The Legislature shall provide for the manner in which a petition shall be circulated, presented, and certified, and the manner in which a measure shall be submitted to the electors.

A proposed amendment or revision shall be submitted to the electors and, if approved by a majority of votes casts thereon, takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. on, but the measure may provide that it becomes operative after its effective date. If provisions of two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative votes shall prevail.

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201617 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

(a)An initiative statute or referendum approved by a majority of votes cast thereon takes effect on the fifth day after the election Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. If a referendum petition is filed against a part of a statute statute, the remainder of the statute shall not be delayed from going into effect.

(b)If provisions of 2 two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative vote votes shall prevail.

(c)The Legislature may amend or repeal a referendum statutes. It statute. The Legislature may amend or repeal an initiative statute by another statute that becomes effective only when approved by the electors unless the initiative statute permits amendment or repeal without their the electors approval.

(d)Prior to Before circulation of an initiative or referendum petition for signatures, a copy shall be submitted to the Attorney General who shall prepare a title and summary of the measure as provided by law.

(e)The Legislature shall provide for the manner in which petitions a petition shall be circulated, presented, and certified, and measures the manner in which a measure shall be submitted to the electors.

A proposed amendment or revision shall be submitted to the electors and and, if approved by a majority of votes thereon casts thereon, takes effect on the fifth day after the election Secretary of State files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise. If provisions of 2 two or more measures approved at the same election conflict, those of the measure receiving the highest number of affirmative vote votes shall prevail.

 THIRD READING  

Bill No: ACA 1

Author:

:

Vote:

PRIOR VOTES NOT RELEVANT

SUBJECT: Greenhouse Gas Reduction Reserve Fund

SOURCE: Author

DIGEST:

This constitutional amendment creates the Greenhouse Gas Reduction Reserve Fund, and requires all moneys in the Fund to be available upon appropriation if passed by a two-thirds vote of each house of the Legislature, as specified.

ANALYSIS:

Existing law:

1. Requires, pursuant to the California Global Warming Solutions Act of 2006 (AB 32), the Air Resources Board (ARB) to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.
2. Requires the ARB to ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030 (known as the SB 32 cap). The ARB is authorized to adopt a regulation that establishes a market-based compliance mechanism for sources that emit GHGs (the Cap-and-Trade Program).
3. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to the Cap-and-Trade Program be deposited in the fund and requires the Department of Finance, in consultation with the ARB and any other relevant state agency, to develop, as specified, a three-year investment plan for the moneys deposited in the GGRF.
4. Prohibits the state from approving allocations for a measure or program using GGRF moneys except after determining that the use of those moneys furthers the regulatory purposes of AB 32.
5. Authorizes expenditures from the GGRF for investments that reduce GHG emissions through, among other things, clean energy and renewable energy generation and advanced biofuels.
6. Requires at least 25% of available moneys in the GGRF to go toward projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities.
7. Appropriates continuously the GGRF as follows:
   1. 25% for the state’s high‑speed rail project.
   2. 20% for affordable housing and sustainable communities grants (with at least half of this amount for affordable housing).
   3. 10% for intercity rail capital projects.
   4. 5% for low carbon transit operations.
   5. The remaining 40% is available for annual appropriation by the Legislature through the state budget. The statute also requires that an outstanding loan of $400 million in auction revenues to the General Fund be repaid to the high‑speed rail project when needed by the project.
8. Provides, pursuant to the California Constitution, that the state budget bill and other bills providing for appropriations related to the budget bill may be passed in each house of the Legislature by a majority of the membership concurring, to take effect immediately upon being signed by the Governor or upon a date specified in the legislation.

This constitutional amendment:

1. Adds a new section to the California Constitution, subject to voter approval, to provide all of the following:
2. The Greenhouse Gas Reduction Reserve Fund (GGRRF) is hereby created as a special fund in the State Treasury.
3. For the time period specified in subdivision (d) only, all moneys collected by the ARB from the auction or sale of allowances pursuant to the Cap-and-Trade Program shall be deposited in the GGRRF.
4. Notwithstanding any other provision of the Constitution, moneys in the GGRRF shall be available upon appropriation by the Legislature by a two-thirds vote of the membership of each house, for the same purposes applicable on January 1, 2024, to the GGRF.
5. Moneys collected by the ARB and deposited in the GGRRF per (b), above, shall commence January 1, 2024, and continue only until the effective date of legislation that contains an appropriation from the GGRRF. After the effective date of that legislation, all new moneys collected pursuant to a market-based compliance mechanism shall be deposited in the GGRF.
6. Specified state sales and use taxes shall not apply to sales that occur while moneys are being deposited in the GGRRF, but shall resume on the effective date of legislation identified in (d), above.
7. Makes the following legislative findings:
8. The California Global Warming Solutions Act of 2006 establishes statewide targets for reducing greenhouse gases that cause global warming to 1990 levels by 2020 and to 40% below 1990 levels by 2030; and
9. The ARB adopted the market-based compliance mechanism, known as the Cap-and-Trade Program, which is the most cost-effective means to assist the state in reaching the statewide emissions reduction targets by allocating allowances to represent GHG emissions and decreasing the number of allowances over time; and
10. The market-based compliance mechanism includes the distribution of a portion of the allowances by auction and reserve sales, the proceeds of which the Legislature has directed to be deposited in the GGRF; and
11. The projects funded by moneys derived from the auction or sale of allowances, among other things, assist farmers in making changes needed to reduce emissions; enable residents to invest in energy efficiency and renewable energy upgrades; improve air quality for millions of residents, especially in our most polluted communities; support low- and zero-carbon transportation alternatives and sustainable communities; and enhance natural resources, including healthy forests and parks; and
12. Moneys from the sale of allowances must continue to achieve additional emissions reductions and provide benefits to low-income and disadvantaged communities; and
13. It is vital to protect the integrity of the Cap-and-Trade Program; and
14. The Legislature, representing a diverse range of Californians, should assess the efficacy of the programs funded by the Cap-and-Trade Program to ensure those programs are furthering the state’s ambitious plan to reduce GHG emissions to 40% below 1990 levels by 2030;

Background

Implementing AB 32: The California Global Warming Solutions Act of 2006. In addition to calling on the ARB to inventory GHGs in California (including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride) and approve a statewide GHG emissions limit, to be achieved by December 31, 2020, equivalent to the level of 1990 emissions, AB 32 (Núñez, Pavley, Chapter 488, Statutes of 2006) also requires ARB to (1) implement regulations that achieve the maximum technologically feasible and cost-effective reduction of GHG emissions, (2) identify and adopt regulations for discrete early-action measures, and (3) prepare and approve a Scoping Plan, to be updated every five years, to achieve the maximum technologically feasible and cost-effective reduction of GHG emissions by 2020.

The statute also specifies that ARB may include market-based compliance mechanisms. The Legislature defined “market-based compliance mechanism” as either (1) “a system of market-based declining annual aggregate emissions limitations for sources or categories of sources that emit greenhouse gases”, or (2) “greenhouse gas emissions exchanges, banking, credits, and other transactions, governed by rules and protocols established by the state board, that result in the same greenhouse gas emission reduction, over the same time period, as direct compliance with a greenhouse gas emission limit or emission reduction measure adopted by the state board pursuant to this division.”

The Legislature further specified that prior to the inclusion of any market-based compliance mechanism in the regulations, the ARB was required to (1) “consider the potential for direct, indirect, and cumulative emission impacts from these mechanisms, including localized impacts in communities that are already adversely impacted by air pollution,” (2) “design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants,” and (3) “maximize additional environmental and economic benefits for California, as appropriate.”

The Cap-and-Trade Program was recommended in the Scoping Plan as a central approach to flexibly and iteratively reduce emissions over time. Pursuant to legal authority under AB 32, ARB adopted cap-and-trade regulations and those regulations were approved on December 13, 2011.

Beginning on January 1, 2013, the cap-and-trade regulation sets a firm, declining cap on total GHG emissions from sources that make up approximately 85% of all statewide GHG emissions. Sources included under the cap are termed “covered” entities. The cap is enforced by requiring each covered entity to surrender one “compliance instrument” for every emissions unit (i.e., metric ton of carbon dioxide equivalent or MTCO₂e) that it emits at the end of a compliance period.

Over time, the cap declines, resulting in GHG emission reductions. Two forms of compliance instruments are used: allowances and offsets. Allowances are generated by the state in an amount equal to the cap and may be “banked” (i.e., allowing current allowances to be used for future compliance). An offset is a credit for a real, verified, permanent, and enforceable emission reduction project from a source outside a capped sector (e.g., a certified carbon-storing forestry project). Offsets may be used to satisfy up to 8% of a covered entity’s compliance obligation. Some fraction of allowances are allocated freely to covered entities, a small portion is set aside as part of an allowance price-containment reserve, and the rest is auctioned off quarterly.

Use of Cap-and-Trade Auction Revenue. Since November 2012, ARB has conducted eight California-only and nine joint California-Québec cap-and-trade auctions. To date, $3.8 billion has been appropriated by the Legislature to 12 state agencies that have distributed $1.2 billion to projects that have been completed or are under way.

Existing state law specifies that the auction revenues must be used to facilitate the achievement of measurable GHG emissions reductions and outlines various categories of allowable expenditures. Statute further requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop a three-year investment plan for the auction proceeds, which are deposited in the GGRF. ARB is required to develop guidance for administering agencies on reporting and quantifying methodologies for programs and projects funded through the GGRF to ensure the investments further the regulatory purposes of AB 32.

Proceeds from cap-and-trade auctions provide an opportunity for the state to invest in projects that help California achieve its climate goals and provide benefits to disadvantaged communities. Several bills in 2012, one in 2014, and one in 2016 provide legislative direction for the expenditure of auction proceeds including SB 535 (de León, Chapter 830, Statutes of 2012), AB 1532 (J. Pérez, Chapter 807, Statutes of 2012), SB 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012), SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014), and AB 1550 (Gomez, Chapter 369, Statutes of 2016).

These statutes also require a state agency, prior to expending any money appropriated to it by the Legislature from the fund, to prepare a description of (1) proposed expenditures, (2) how they will further the regulatory purposes of AB 32, (3) how they will achieve specified greenhouse gas emission reductions, (4) how the agency considered other objectives of that act, and (5) how the agency will document expenditure results.

Legislative Analyst Office (LAO). In the LAO’s review of the Governor’s 2017-18 Budget released in February, LAO made the following recommendations:

1. “Authorize Cap-and-Trade Beyond 2020 Because Likely Most Cost-Effective Approach. We recommend the Legislature authorize cap-and-trade (or a carbon tax) beyond 2020 because it is likely the most cost-effective approach to achieving the state’s 2030 GHG emissions target. If the Legislature approves cap-and-trade, we recommend the Legislature (1) strengthen the allowance price ceiling because there is potential for substantial price volatility associated with the lower cap and (2) provide clearer direction to ARB regarding the criteria that the board should use to determine whether complementary policies should be adopted. We also recommend the Legislature continue to take steps to ensure oversight and evaluation of major climate policies by establishing an independent expert committee.”
2. “Approve With a Two-Thirds Vote to Ensure Ability to Design Effective Program. Although cap-and-trade could be extended with a simple majority vote, we recommend the Legislature approve cap-and-trade (or carbon tax) with a two-thirds vote because it would provide greater legal certainty and ensure ARB has the ability to design an effective program. For example, a two-thirds vote would provide legal certainty regarding ARB’s authority to auction allowances -- a method for distributing allowances that is generally recommended by economists. A two-thirds vote would also allow the Legislature to remove the current requirement that cap-and-trade auction revenues can only be used on activities that reduce GHG emissions.”
3. “Broaden Allowable Uses of Revenue to Include Other Legislative Priorities. With a two-thirds vote, we recommend the Legislature broaden the allowable uses of auction revenue because it would give the Legislature flexibility to use the funds on its highest priorities. The Legislature could use the funds to (1) offset higher energy costs for households and businesses by providing tax reductions or rebates; (2) promote other climate-related policy goals, such as climate adaptation activities; and/or (3) support other legislative priorities unrelated to climate policy. In our view, returning the revenue to businesses and consumers by reducing taxes or providing rebates could become a particularly important option if allowance prices -- and, consequently energy costs for households and businesses -- increase substantially in the future.”

Total Cap-and-Trade Spending Through 2016-17 (per the LAO):

Program Total (In Millions)

High-speed rail 958

Affordable housing/sustainable communities 696

Low carbon vehicles 688

Transit and intercity rail capital 443

Low-income weatherization and solar 174

Transit operations 167

Transformational Climate Communities 140

Agricultural energy and efficiency 140

Sustainable forests and urban forestry 82

Green infrastructure 80

Waste diversion 71

Water efficiency 70

Wetlands and watershed restoration 27

Active transportation 10

Black carbon woodsmoke 5

Other technical assistance and administration 50

Totals $3,800

Related/Prior Legislation

AB 398 (E. Garcia, 2017), which is pending in the Senate Appropriations Committee, provides for all of the following:

1. Requires the ARB, no later than January 1, 2018, to update the scoping plan,
2. Extends ARB’s authority to establish and utilize, through regulations, a market-based mechanism, specifically cap-and-trade,
3. Requires ARB to include specified price ceilings, price containment points, offset credit compliance limits, and industry assistance factors for allowance allocation as part of the regulation,
4. Requires additional reports and accountability to the Legislature,
5. Prohibits an air quality management district (AQMD) from adopting or implementing an emission reduction rule for carbon dioxide from stationary sources that are also subject to cap-and-trade,
6. Suspends the State Responsibility Area (SRA) Fire Prevention Fee on January 1, 2031 and then repeals the fee as of that date,
7. Provides additional tax exemptions for qualified tangible personal property purchased for use by a qualified person, as specified,
8. Provides the GGRF are to be transferred to the General Fund to offset the revenue loss to the state of this tax exemption, and
9. Provides that it is the intent of the Legislature for GGRF to be used to fund the activities funded by the SRA Fire Prevention Fee. 

Because the Cap-and-Trade Program is not authorized beyond 2020 unless AB 398 is enacted, ACA 1 is only applicable if AB 398 becomes law.

FISCAL EFFECT: Appropriation: Fiscal Com.: Yes Local:

SUPPORT: (Verified 7/17/17)

None received

OPPOSITION: (Verified 7/17/17)

None received

ASSEMBLY FLOOR: 75-0, 5/31/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Chen, Choi, Eggman, Limón, Melendez

Prepared by:

7/17/17 15:33:17

**** END ****

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:ACA 1

Author:(Mayes)

As Amended Ver:July 14, 2017

2/3 vote

(Vote not relevant)

Original Committee Reference: BUDGET

SUMMARY: Requires that the first appropriation of any moneys collected from the auction or sale of cap and trade allowances after January 1, 2024 be subject to a two-thirds vote of the Legislature. Upon the effective date of the two-thirds vote appropriation, moneys from the auction or sale of cap and trade allowances will return to being subject to a majority vote of the Legislature.

The Senate amendments delete the previous contents of the measure and instead:

1. Creates a new "Greenhouse Gas Reduction Reserve Fund."
   1. Beginning on January 1, 2024, deposits cap and trade revenues in the Greenhouse Gas Reduction Reserve Fund.
   2. Requires a two-thirds vote threshold to appropriate funds out of the Greenhouse Gas Reduction Reserve Fund.
   3. After a two-thirds vote appropriation takes effect, ends the deposits into the Greenhouse Gas Reduction Reserve Fund, and instead deposits moneys into the Greenhouse Gas Reduction Fund, which is not subject to the two-thirds vote threshold.
2. Suspends the Manufacturing Sales Tax Exemption after January 1, 2024 until a two-thirds appropriation from the Greenhouse Gas Reduction Reserve Fund takes effect.

FISCAL EFFECT: No fiscal impact if the two-thirds appropriation is approved by the Legislature that takes effect on January 1, 2024.

If a two-thirds appropriation from the Greenhouse Gas Reduction Reserve Fund is not approved by that time, then:

1. The balance in the Greenhouse Gas Reduction Reserve Fund will accumulate based on the level of moneys received from the auction or sale of cap and trade allowance.
2. No new funds will be deposited into Greenhouse Gas Reduction Fund for appropriation, including existing continuous appropriations from this fund that exist in current law.
3. Manufacturers would not benefit from the Manufacturing Sales Tax Exemption, and therefore pay increased taxes at a rate of about $260 million per year.

COMMENTS: This constitutional amendment is predicated on a continuation of auctions of greenhouse gas emission allowances under a state-run cap and trade program, such as the one proposed in AB 398 (Eduardo Garcia) of the current legislative session.

The intent of this constitutional amendment is to establish a one-time two-thirds vote requirement, about half way between now and the 2030 extension period of cap and trade provided by AB 398, to help ensure the expenditure of funds from the cap and trade program maintains broad support of the Legislature.

If passed by the Legislature, this constitutional amendment will be placed on the June 2018 ballot and become operative if approved by voters.

Analysis Prepared by: Christian Griffith / BUDGET / (916) 319-2099 FN: 0001198

SENATE COMMITTEE ON

ELECTIONS AND CONSTITUTIONAL AMENDMENTS

Senator Henry Stern, Chair

2017 - 2018 Regular

Bill No: 1 Hearing Date: 7/12/17

Subject:

DIGEST

This measure provides that an initiative statute, referendum, or constitutional amendment or revision approved by the voters takes effect on the fifth day after the Secretary of State (SOS) files the statement of the vote.

ANALYSIS

Existing law:

1. Requires any initiative statute, a referendum, or constitutional amendment or revision approved by a majority of votes cast to take effect the day after the election, unless the measure provides otherwise. If a referendum petition is filed against a part of a statute, the remainder shall not be delayed from going into effect.
   
2. Requires that when provisions of two or more measures approved at the same election conflict, those measures receiving the highest number of affirmative votes shall prevail.
   
3. Requires the SOS to tally the results of all statewide measures, and prepare, certify, and file a statement of the vote from the compiled results not later than the 38^th day after the election.

This bill:

1. Provides instead that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes cast shall take effect on the fifth day after the SOS files the statement of the vote unless the measure provides that it becomes operative after its effective date.

BACKGROUND

Waiting for VBM Ballots. A majority of California voters now choose to vote using a vote by mail ballot (VBM), either by returning their ballot through the mail or by dropping off their VBM ballot in person. Under existing law, VBM ballots are required to be received by the elections official from who they were obtained or by the precinct board by the close of the polls on election day; or VBM ballots may be counted if they are cast by election day and received by the elections official by mail no later than three days after the election, as specified.

In the November 2016 general election, voter participation increased to 74% and more than 57% of voters chose to vote by mail. VBM ballots can be received by counties for up to three days after Election Day, and the time it takes to process those ballots is extended accordingly.

Under current law an initiative statute, a referendum, or constitutional amendment or revision approved by the majority of votes cast takes effect the day after the election. Because VBM ballots are still being delivered to elections officials to be processed for up to three days after the election and because counties continue to process and count VBM and provisional ballots for weeks after the election, it may not be possible to determine the accurate outcome until the SOS files the statement of the vote. This measure will help ensure that VBM and provisional ballots are included in the official canvass before determining if an initiative statute, a referendum, or a constitutional amendment or revision is to be enacted.

COMMENTS

1. According to the author: In 2016, with millions of ballots still left to be counted, initiatives and referenda deemed to have passed went into effect the day after the election, unless specified otherwise in the language of the measure. Even before the vote had been finalized and certified, these measures were considered law. This begs the question: what if a measure that was deemed to have passed was in fact shown not to have received enough votes by the certification of the vote? Allowing initiatives and referenda to go into effect essentially immediately following the election has the potential to create confusion and even the potential for an erroneous perceived change in the law.
   
   This problem is exacerbated by the increase in vote-by-mail (VBM), which has led to longer times in counting ballots as many VBM ballots arrive on, or up to three days after, Election Day. Additionally, processing these VBM ballots takes longer - elections officials must confirm each voter's registration status, verify each voter's signature on the vote-by-mail envelope, and ensure each person did not vote elsewhere in the same election.
   
   After a statewide election counties must send their certified election results to the Secretary of State up to 30 days after Election Day. Following that, the Secretary of State has seven days to compile the complete Statement of Vote (SOV), containing the official results.
   
   ACA 1 will delay the enactment of initiative or referenda until five days after the Secretary of State releases the SOV. By delaying the enactment until after the vote has been certified, this measure ensures that the true and correct implementation of ballot measures occurs.

PRIOR ACTION

POSITIONS

Sponsor: Author

Support: Secretary of State

California Grocers Association

Oppose: None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:ACA 1

Author:(Mullin)

As Introduced Ver:December 5, 2016

2/3 vote

SUMMARY: Provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes cast shall take effect on the fifth day after the Secretary of State (SOS) files the statement of the vote unless the measure provides otherwise, instead of going into effect the day after the election as is the case under existing law. Makes technical changes.

EXISTING LAW:

1. Requires any initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes cast to take effect the day after the election, unless the measure provides otherwise. Provides that if a referendum petition is filed against a part of a statute, the remainder shall not be delayed from going into effect.
2. Requires that when provisions of two or more measures approved at the same election conflict, those measures receiving the highest number of affirmative votes shall prevail.
3. Requires the SOS to tally the results of all statewide measures, and prepare, certify, and file a statement of the vote from the compiled results not later than the 38th day after the election.

FISCAL EFFECT: According to the Assembly Appropriations Committee, one-time General Fund costs of several hundred thousands of dollars for printing and mailing costs to place the measure on the ballot on June 5, 2018. For example, at a cost of $69,000 per page in the voter guide, assuming a total of four pages, the cost would be $276,000 to place this measure on the ballot. The actual costs would depend on the length of the title and summary, analysis by the Legislative Analyst's Office, proponent and opponent arguments, and text of the proposal.

COMMENTS: According to the author, "In 2016, with millions of ballots still left to be counted, initiatives and referenda deemed to have passed went into effect the day after the election, unless specified otherwise in the language of the measure. Even before the vote had been finalized and certified, these measures were considered law. This begs the question: what if a measure that was deemed to have passed was in fact shown not to have received enough votes by the certification of the vote? Allowing initiatives and referenda to go into effect essentially immediately following the election has the potential to create confusion and even the potential for an erroneous perceived change in the law.

"This problem is exacerbated by the increase in vote-by-mail (VBM), which has led to longer times in counting ballots as many VBM ballots arrive on, or up to three days after, Election Day. Additionally, processing these VBM ballots takes longer - elections officials must confirm each voter's registration status, verify each voter's signature on the vote-by-mail envelope, and ensure each person did not vote elsewhere in the same election.

"After a statewide election counties must send their certified election results to the Secretary of State up to 30 days after Election Day. Following that, the Secretary of State has seven days to compile the complete Statement of Vote (SOV), containing the official results.

"ACA 1 will delay the enactment of initiative or referenda until five days after the Secretary of State releases the SOV. By delaying the enactment until after the vote has been certified, this measure ensures that the true and correct implementation of ballot measures occurs."

Analysis Prepared by: Lori Barber / E. & R. / (916) 319-2094 FN: 0000620

Date of Hearing: May 17, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:ACA 1

Author:(Mullin) – As Introduced Ver:December 5, 2016

Urgency: State Mandated Local Program: No Reimbursable: No

SUMMARY:

This proposed constitutional amendment provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes cast will take effect on the fifth day after the Secretary of State (SOS) files the statement of the vote unless the measure provides otherwise, instead of going into effect the day after the election as is the case under existing law.

FISCAL EFFECT:

One-time GF costs of several hundred thousands of dollars for printing and mailing costs to place the measure on the ballot on June 5, 2018. For example, at a cost of $69,000 per page in the voter guide, assuming a total of four pages, the cost would be $276,000 to place this measure on the ballot. The actual costs would depend on the length of the title and summary, analysis by the Legislative Analyst’s Office, proponent and opponent arguments, and text of the proposal.

COMMENTS:

1. Background. Existing law requires any initiative statute, a referendum, or constitutional amendment or revision approved by a majority of votes cast to take effect the day after the election, unless the measure provides otherwise. Existing law also provides that if a referendum petition is filed against a part of a statute, the remainder will not be delayed from going into effect. The SOS is required to tally the results of all statewide measures, and prepare, certify, and file a statement of the vote from the compiled results not later than the 38^th day after the election.
2. Purpose. According to the author, “In 2016, with millions of ballots still left to be counted, initiatives and referenda deemed to have passed went into effect the day after the election, unless specified otherwise in the language of the measure. Even before the vote had been finalized and certified, these measures were considered law.” The author further states, “After a statewide election counties must send their certified election results to the Secretary of State up to 30 days after Election Day. Following that, the Secretary of State has seven days to compile the complete Statement of Vote (SOV), containing the official results.” In describing how this constitutional amendment would address the problem, the author states, “ACA 1 will delay the enactment of initiative or referenda until five days after the Secretary

of State releases the SOV. By delaying the enactment until after the vote has been certified, this measure ensures that the true and correct implementation of ballot measures occurs.”

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: May 10, 2017

ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING

Marc Berman, Chair

ABPCA Bill Id:ACA 1 (

Author:Mullin) – As Introduced Ver:December 5, 2016

SUBJECT: Ballot measures: effective date.

SUMMARY: Provides that an initiative statute, referendum, or constitutional amendment or revision approved by a majority of votes cast shall take effect on the fifth day after the Secretary of State (SOS) files the statement of the vote unless the measure provides otherwise, instead of going into effect the day after the election as is the case under existing law. Specifically, this measure:

1. Provides that an initiative statute, a referendum, or constitutional amendment or revision approved by a majority of votes cast thereon takes effect on the fifth day after the SOS files the statement of the vote for the election at which the measure is voted on unless the measure provides otherwise.
2. Makes technical changes.

EXISTING LAW:

1. Requires any initiative statute, a referendum, or constitutional amendment or revision approved by a majority of votes cast to take effect the day after the election, unless the measure provides otherwise. Provides that if a referendum petition is filed against a part of a statute, the remainder shall not be delayed from going into effect.
2. Requires that when provisions of two or more measures approved at the same election conflict, those measures receiving the highest number of affirmative votes shall prevail.
3. Requires the SOS to tally the results of all statewide measures, and prepare, certify, and file a statement of the vote from the compiled results not later than the 38^th day after the election.

FISCAL EFFECT: Unknown. Although this measure has been keyed non-fiscal by the Legislative Counsel, it has been double-referred to the Assembly Appropriations Committee.

COMMENTS:

1. Purpose of the Bill: According to the author:

In 2016, with millions of ballots still left to be counted, initiatives and referenda deemed to have passed went into effect the day after the election, unless specified otherwise in the language of the measure. Even before the vote had been finalized and certified, these measures were considered law. This begs the question: what if a measure that was deemed to have passed was in fact shown not to have received enough votes by the certification of the vote? Allowing initiatives and referenda to go into effect essentially immediately following the election has the potential to create confusion and even the potential for an erroneous perceived change in the law.

This problem is exacerbated by the increase in vote-by-mail (VBM), which has led to longer times in counting ballots as many VBM ballots arrive on, or up to three days after, Election Day. Additionally, processing these VBM ballots takes longer - elections officials must confirm each voter's registration status, verify each voter's signature on the vote-by-mail envelope, and ensure each person did not vote elsewhere in the same election.

After a statewide election counties must send their certified election results to the Secretary of State up to 30 days after Election Day. Following that, the Secretary of State has seven days to compile the complete Statement of Vote (SOV), containing the official results.

ACA 1 will delay the enactment of initiative or referenda until five days after the Secretary of State releases the SOV. By delaying the enactment until after the vote has been certified, this measure ensures that the true and correct implementation of ballot measures occurs.

1. Including VBM Ballots: A majority of California voters now choose to vote using a VBM ballot, either by returning their ballot through the mail or by dropping off their VBM ballot in person. Under existing law, VBM ballots are required to be received by the elections official from who they were obtained or by the precinct board by the close of the polls on election day; or VBM ballots may be counted if they are cast by election day and received by the elections official by mail no later than three days after the election, as specified.

In the November 2016 general election, voter participation increased to 74% and more than 57% of voters chose to vote by mail. VBM ballots can be received by counties for up to three days after election day, and the time it takes to process those ballots is extended accordingly.

Under current law an initiative statute, a referendum, or constitutional amendment or revision approved by the majority of votes cast takes effect the day after the election. Because VBM ballots are still being delivered to elections officials to be processed for up to three days after the election and because counties continue to process and count VBM and provisional ballots for weeks after the election, it may not be possible to determine the accurate outcome until the SOS files the statement of the vote.

This measure will help ensure that VBM and provisional ballots are included in the official canvass before determining if an initiative statute, a referendum, or a constitutional amendment or revision is to be enacted.

1. When Does That Measure Take Effect? According to the California Constitution an initiative statute, referendum, or constitutional amendment or revision that is approved by a majority of voters takes effect on the day following the election unless the measure provides otherwise. Under existing law the SOS is required to compile the results of all statewide measures, and to then prepare, certify, and file a statement of the vote from the compiled results no later than the 38^th day after the election.

This measure delays the enactment of an initiative statute, a referendum, or a constitutional amendment or revision approved by the voters until five-days after the SOS files the statement of the vote for the election at which the measure is voted on, unless the measure specifies that it will take effect on a different date.

1. Argument in Support: In support of the measure, the California Grocers Association (CGA) writes:

The measure would clarify that the effective date of voter-passed measures is five days after the election is certified by the Secretary of State, unless otherwise specified by the measure itself. CGA is no stranger to the confusion that is often associated with an initiative’s passage. At the last general election, our association supported Prop. 67, a referendum on the legislatures ban on single-use plastic bags. The measure passed, but there were many questions from grocers, consumers, and even the press as to when the actual ban would go into effect.

Though the Constitution states that voter approved measures go into effect “the day after the election”, there was some dispute as to the meaning of that term. Some argued that “the day after the election” meant the day after the election was certified, reasoning that the election was not complete until it had been certified. With the uncertainty over the effective date some of our members experienced pushback from customers who remained convinced that we were complying with the removal of single-use plastic bags too soon.

1. Double-Referred: This measure is double-referred to the Assembly Appropriations Committee.
2. Voter Approval: As a constitutional amendment, this measure requires the approval of the voters to take effect.

REGISTERED SUPPORT / OPPOSITION:

Support

California Grocers Association

Secretary of State Alex Padilla

Opposition

None on file.

Analysis Prepared by: Lori Barber / E. & R. / (916) 319-2094