Senate Standing Committee on Elections and Constitutional Amendments

On our agenda today. Before we hear the presentation on the bill, let's establish a quorum. Secretary, please call the roll.

[Roll Call]

The Secretary notes a quorum has been established. Let us begin with our item on file, SB 512 by Senator Pérez. Please begin when you are ready.

Thank you, Madam Chair and your Members. As I run to a couple different committee hearings this morning. SB 512 clarifies and ensures voters in a transportation district can exercise their right to propose and pass a transportation transactions and use tax measure by means of a citizens ballot initiative.

Over the past 40 years, Proposition 2 has granted voters across 25 counties the ability to approve local sales taxes to fund local and regionally significant transportation projects that have provided public and active transportation interchanges, roadway improvements, and other essential transportation infrastructure.

Although Prop 218 acknowledges the power of the people to affect local taxes, California's election code conflicts with that authority due to the lack of explicit authority to allow for residents of local transportation districts to propose and pass transportation transaction and use tax measures by means of a citizens ballot initiative.

As a result of these inconsistencies, any transportation tax measure that is passed by citizens ballot initiative may be susceptible to litigation, rendering these crucial transportation projects vulnerable to unnecessary delays and increased cost. SB 512 addresses this discrepancy that exists by aligning the state's election code with the provisions of Prop 218 and other authorizing statutes, bringing much needed consistency and clarity in California law.

This bill clarifies that the voters within a transportation district can qualify a transportation sales tax measure by citizens ballot initiative and reaffirms the ability of Californians to fund transportation projects that benefit their communities. Today with me to provide testimony in support and help answer technical questions is Keith Dunn on behalf of the Self Help Counties Coalition and the State Building and Construction Trades Council. I respectfully ask your aye at the appropriate time.

Let us begin with your lead witness in support.

Thank you, Madam Chair. Keith Dunn here on behalf of the Self Help Counties Coalition, the State Building Construction Trades Council, as well as the District Council of Ironworkers. I'll be very brief and just say this is really about trusting our citizens who want to invest in their own communities. And when they make those decisions, allowing a properly authorized transportation agency to administer those resources.

We've got 25 self help counties throughout our state who leverage those funds to not only attract state dollars, but also federal dollars. And again, this does not authorize any taxes. This just says that if the citizens decide that they would like to invest in their communities, that we're going to provide the oversight, protections, labor protections, to make sure that those funds are treated appropriately. With that, I'm happy to answer your questions and would ask for your support. Thank you.

Thank you. Any other witnesses in support? Please approach.

Good morning, Senators. Jason Bryant on behalf of Transportation California, and we're in support. Thank you.

We will now move to any lead witnesses in opposition. Seeing none. Any individual wishing to speak in opposition? Seeing none. We will move it back to the committee. Members, any questions or comments for the author? Dr. Choi.

Thank you, Chair. As only Republican Member on the committee, I think I need to express my opposition to this SB 512. This bill would authorize voters in certain districts to impose certain taxes through the initiative process. Most concerning is that this bill bypasses the requirement that 2/3 of the electorate must vote to approve local special taxes.

Proposition 13 in 1978 and then Prop 218 in 1996 codified and expanded the 2/3 vote requirement. This vote approved measures were passed with the intent of ensuring affordability for Californians and requiring a strong consensus before imposing new costs.

Further, this will encourage local elected officials and special interest groups to utilize the initiative process to impose new taxes with the simple majority rather than that strong consensus of the voters. This would make the most regressive form of taxation, sales tax, easier to enact. Sales taxes disproportionately affects low income Californians.

We should not be acting to increase costs on everyday essentials that impact our most needy citizens. At a time when Californians are struggling with the cost of living, the Legislature should not make it easier to increase taxes. This bill has the potential to set a precedent that could ultimately weaken or eliminate the 2/3 of voter approval safeguard. For these reasons, I'm voting no today.

Thank you. Senator Pérez, would you like to close?

No, respectfully ask for your aye vote. Thank you.

Secretary, please call the roll. We have a motion by Senator Limón. Secretary, please call the roll.

The motion is that the Assembly amendments be concurred in. [Roll Call]

2-1. That bill is on call.

This committee stands in recess.

This committee is gaveling back in. Secretary, please lift the call on the Item on file, SB 512.

Motion is that the Assembly amendments be concurred in. Current vote is 2-1. Chair voted aye. Vice Chair voted no. [Roll Call]

3-1. That bill is out, and we are closing the roll. This committee is now adjourned.