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CC SR 20180306 05 - Props 68 & 69RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 03/06/2018 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to take positions regarding Proposition 68 ("Parks, Environment and Water Bond") and Proposition 69 ("Transportation Taxes and Fees Lockbox and Appropriations Limit Exemption Amendment") on the June 5, 2018, statewide ballot; and the possible repeal of SB 1 ("Road Repair and Accountability Act of 2017") on the November 6, 2018, statewide ballot. RECOMMENDED COUNCIL ACTION: (1) Consider whether or not to take a position on Proposition 68; (2) Adopt Resolution No. 2018-_, thereby supporting Proposition 69; and, (3) Consider whether or not to take a position on the repeal of SB 1. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst REVIEWED BY: Gabriella Yap, Deputy City Manager APPROVED BY: Doug Willmore, City Manager,/' ATTACHED SUPPORTING DOCUMENTS: A. League "Action Alert," dated 2/7/18 (page A-1) B. Proposition 68 fact sheet and funding priorities (page B-1) C. Proposition 69 and SB -1 fact sheet (page C-1) D. Draft Resolution No. 2018-, supporting Proposition 69 (page D-1) E. City Council Minutes (excerpt), dated 2/7/17 (page E-1) F. Proposed Initiative No. 17-0033, repealing SB 1 (page F-1) BACKGROUND AND DISCUSSION: On February 7, 2018, the League of California Cities (League) contacted Staff and asked the City Council to consider adopting resolutions supporting Propositions 68 and 69, and to oppose efforts to repeal Senate Bill No. 1 (SB 1), which increased the State gas tax by $0.12/gallon beginning on November 1, 2017, and imposed a new Transportation Improvement Fee on annual motor vehicle registrations beginning on January 1, 2018 (Attachment A). 1 Proposition 68 Senate Bill No. 5 (SB 5)—known officially as "The California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018"—was passed in the State Legislature in September 2017 and signed by Governor Brown. SB 5's passage placed a $4 billion bond (Proposition 68) on the June 2018 ballot that would fund parks, water, climate and environmental programs. If the voters approve Proposition 68, local governments would receive funding for local park improvements and will be eligible for grants to fund water, local parks, coastal and climate resiliency projects. A fact sheet and list of funding priorities for Proposition 68 is attached (Attachment B). The complete text of Proposition 68 is available on-line at http://elections.cdn.sos.ca.gov/ballot-measures/pdf/sb5-ch852.pdf. Rancho Palos Verdes was founded on the principals of fiscal conservatism and has never relied upon bond funding for public infrastructure projects. At this point, the amount of direct funding that the City might expect to receive under Proposition 68 is unclear. However, among the list of funding priorities under Proposition 68 are: • Assistance to coastal communities for climate change adaptation ($41 million); • Local park safety and improvements ($285 million); • Natural Community Conservation Plan (NCCP) projects ($52 million); and, • Wildlife and land conservation ($18 million). Staff believes that some or all of these funding priorities could be of benefit to the City. If the City Council wishes to support the passage of Proposition 68, Staff will prepare a resolution for adopt at a future meeting on or before the June 5, 2018, statewide election. Proposition 69 Passed by the State Legislature in April 2017, Assembly Constitutional Amendment No. 5 (ACA 5)—now known as Proposition 69—was part of the agreement to secure passage of SB 1 (see discussion below), the transportation funding proposal that is now law. Although roughly 70% of the SB 1 funds are already named in the State Constitution and, therefore, can only be used for transportation purposes, roughly 30% of SB 1 funds are going to newly -formed accounts that must be called out in the State Constitution in order to prevent them from being diverted by the legislature in the future (Attachment C). Proposition 69 would prohibit the legislature from raiding these new transportation funds, ensuring that these funds cannot be borrowed or diverted by the legislature, and can only be used for transportation purposes. Staff believes that there is value in ensuring that the State Legislature cannot raid transportation funds to fill unrelated program needs, as has happened from time to time in the past. Therefore, Staff has prepared a draft resolution supporting Proposition 69 (Attachment D) for the City Council's consideration and possible adoption. 2 Repeal of SB 1 In February 2017, the City Council was asked to consider supporting Senate Bill No. 1 (SB 1) to fund local street and roadway projects through a combination of a State gas tax increase and other mechanisms. The City Council Staff report may be viewed at http://rpv.granicus.com/MetaViewer.php?view id=5&clip id=2719&meta id=35810. As reflected in the minutes of this meeting (Attachment E), the City Council decided not to support SB 1. Ultimately, SB 1 was approved in the State legislature in April 2017 and began taking effect in November 2017. In October 2017, the City committed to spend its proportional share of the initial proceeds from SB 1 ($243,186) on the resurfacing of Crest Road East. In the wake of the passage of SB 1, supporters of an initiative to repeal SB 1 (Proposed Initiative No. 17-0033) are gathering signatures in an attempt to place this matter on the November 6, 2018, statewide ballot (Attachment F). The League is urging member cities to oppose any effort to repeal SB 1. As discussed above, Staff believes that it would be beneficial to support Proposition 69 to the extent that it will ensure that the SB 1 funds collected and disbursed by the State will be used for appropriate, transportation -related purposes. However, Staff suspects that, based upon the City Council's previous direction, the City Council might not wish to go so far as to oppose a ballot initiative that would repeal SB 1. Therefore, Staff seeks any direction that the City Council wishes to provide with respect to the possible repeal of SB 1. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council's consideration: 1. Take no position on, Proposition 68, Proposition 69 and/or the repeal of SB -1. 2. Direct Staff to further research these issues, and continue this matter to a future agenda. 3 From: Jeff Kiernan To: Jeff Kiernan Subject: YES on 68 & 69 and NO on the SB 1 Repeal Date: Wednesday, February 07, 2018 3:35:32 PM Attachments: SB 5 Park and Water Bond Funding Breakdown.docx Final Resolution -SB 5 Park Bond.docx Prop. 68 Fact Sheet.pdf Prop. 68 Priorities. pdf DRAFT Yes on Prop 69 oppose SB 1 repeal Sample Local Gov Resolution.docx DRAFT Yes on 69 ONLY Sample Local Gov Resolution.docx Fact Sheet Prop 69 SBI Repeal Coalition.pdf Good Afternoon Mayors, Council Members, City Managers, & Local Area Stakeholders: The June statewide election ballot information has been posted by the Attorney General and the Secretary of State and the League of California Cities° would like to ask for your help in supporting two of the 5 measures that will appear on the June 5th ballot, Propositions 68 & 69. Additionally we would like to get cities, Chambers, and local community organizations to officially come out against any effort to repeal SB 1, which would reduce funding that is used to maintain our transportation network. Below and attached I have included detailed information on these measures, as well as sample resolutions for your use. Please let me know if you have any questions. Proposition 68 — California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018, a.k.a. SB 5 (De Leon — 2017) or simply the 2018 Park/Water Bond. Passed by the legislature on September 16, 2017, SB 5 — now known as Proposition 68 — was signed by the Governor to place a $4 billion bond on the June 2018 ballot that would fund parks, water, climate and environmental programs. If the voters approve Proposition 68, local governments would receive funding for local park improvements and will be eligible for grants to fund water, local parks, coastal and climate resiliency projects. A detailed funding breakdown is attached, along with a fact sheet, a sample resolution, and a priorities document. The attached pdf documents, as well as information on the current coalition list, can be found at the Yes on 68 website: https://ves68ca.com. The full text of the initiative can be found on the Secretary of State's website HERE. Proposition 69 — Motor Vehicle Fees and Taxes: Restrictions on expenditures: appropriations limit, a.k.a. ACA 5 (Frazier, 2017). Passed by the legislature on April 6, 2017, ACA 5 — now known as Proposition 69 — was part of the agreement to secure passage of SB 1, the transportation funding proposal which is now law. Although —70% of the SB 1 funds are already named in the Constitution and are therefore can only be used for transportation, —30% of SB 1 funds are going to newly formed accounts which must be called out in the CA Constitution in order to prevent them from being diverted by the legislature in the future. Proposition 69 will prohibit the legislature from raiding these new A-1 transportation funds and ensures that these funds cannot be borrowed or diverted by the legislature and can only be used for transportation purposes. The Yes on 69 campaign is a broad coalition of business, labor, local governments, transportation advocates and taxpayers. Some of the organizations who have already pledged their support: California Alliance for Jobs; California Association of Councils of Governments (CALCOG); California State Association of Counties (CSAC); California State Conference NAACP; California State Council of Laborers; California Transit Association; California Trucking Association, the Los Angeles Area Chamber of Commerce; and the CalChamber. The www.fixCAroads.com website is in the process of being updated and rebranded to be the YES on 69 and NO on SB 1 repeal site. If you need any additional information please feel free to ask me. III. No on Repeal of SB 1— Proposed Initiative No. 17-0033 Although this proposed initiative has not qualified for the November 2018 ballot at this time, the Coalition that worked on fully funding the maintenance of our transportation network for decades is not wasting any time opposing this ill-conceived and dangerous proposal and we would hope that rather than taking two items to your council that you would pre-emptively oppose any SB 1 repeal effort at the same time as you protect these funds by supporting Proposition 69. As written, the proposal to repeal SB 1 would rob our communities of critical transportation improvement funds and require that any future fuel tax or transportation fees be approved by a statewide vote of the electorate. If passed, billions in funding currently being used to maintain our transportation network would be cut off— reducing funding to the pre -SB 1 levels which were inadequate to stave off the crumbling of our bridges, highways and roads. Proper preventative maintenance of our streets and road is by far cheaper than waiting for a road to fail (-8x cheaper) and driving over broken roads filled with potholes is not only dangerous and creates congestion, it also costs motorists in the LA Metro Area an average of $892 annually in additional vehicle maintenance. The Attorney General's title and summary of the proposed measure can be found HERE and the (dangerously broad) initiative language is HERE. Attached are two sample resolutions — one which only indicates your city's support of proposition 69 and one that has both a YES on 69 and a NO on Repeal of SB 1. Thank you in advance for your attention to these critical issues. Please let me know if you have any questions or would like more information. Jeff A-2 Jeffrey Kiernan Regional Public Affairs Manager League of California Cities® 8581 Santa Monica Blvd. #325 West Hollywood, CA goo6g Cell: (31o) 630-7505 A-3 wwr# YESon the CALIFORNIA CLEAN WATER &SAFE PARKS ACT BROAD COALITION SUPPORT The Act is supported by a broad, bipartisan coalition of conservation groups, local park advocates, water experts, and business organizations, that all care about the critical impact of water and parks on our health, economy, and California way of life. In Uncertain Times, California Must Lead the Way. OUR STATE is facing frequent and severe droughts, wildfires, the impacts of climate change, and a lack of support from the federal government to protect our water and natural areas. Now more than ever, California must take responsibility to protect our own unique natural resources and ensure every Californian has access to clean drinking water and safe places for kids to play. THE CLEAN WATER AND SAFE PARKS ACT is a general obligation bond that invests $4 billion in the coming years to address some of California's most important water, park, and natural resource needs. The state legislature passed the California Clean Water & Parks Act (SB5) with bipartisan support, and it will appear on the June statewide ballot. ENSURING CLEAN DRINKING WATER. SECURING FUTURE WATER SUPPLIES. The Act will help keep toxic pollutants out of our water supplies, clean up groundwater, and protect land around the rivers, lakes, and streams that are the sources of our drinking water. PREPARING CALIFORNIA FOR THE NEXT DROUGHT. USING LOCAL WATER MORE EFFICIENTLY The Act will help California deal with droughts and wildfires that could become more frequent and severe with climate change. It takes a smart, efficient approach to ensure clean, safe drinking water—capturing and recycling more water locally, and making local water systems more effective with proven cost-saving solutions. This June, Californians can help to ensure clean, safe drinking water and protect natural resources in uncertain times. CLEAN WATER FOR EVERY COMMUNITY. SAFE PARKS FOR EVERY CHILD. Today, there are underserved communities in California where families cannot turn on the tap and get safe water to drink. And many communities lack parks and safe places for kids to play and grow. The Act addresses these inqualities by cleaning up contaminated local water supplies and making important investments in neighborhood parks in underserved areas. /OTE YES on the CALIFORNIA CLEAN WATER &SAFE PARKS ACTPROTECTING WHAT MATTERS. PREPARING FOR THE FUTURE. Paid for by Californians for Clean Water and Safe Parks, sponsored by Conservation Groups. Committee major funding from The Nature Conservancy Conservation Action Fund for clean water and parks, sponsored by environmental organizations B-2 Committee for Clean Water Natural Resources and Parks L CALIFORNIA CLEAN WATER SAFE PARKS ACTPROTECTING WHAT MATTERS. PREPARING FOR THE FUTURE. + Cleans up and protects our drinking water supplies + Protects streams and rivers that provide drinking water from pollution + Smart, proven, efficient solutions to secure future water supplies + Restores groundwater, which was severely drained in the last drought + Keeps toxic pollution out of our drinking water + Provides safe drinking water to communities with contaminated water + Improves the safety of neighborhood parks throughout California + Helps ensure every California community has access to quality parks + Increases access to our coast and beaches + Restores and protects our natural areas and implements wildfire protection measures + Cleans up groundwater and funds water recycling projects + Captures more stormwater and prevents flooding THE CALIFORNIA CLEAN WATER SAFE PARKS ACT Investment Priorities ENSURING CLEAN DRINKING WATER + $250 million for clean drinking water and drought preparedness + $80 million for groundwater cleanup + $290 million for regional water sustainability, including $50 million for groundwater sustainability planning + $100 million to enhance water supplies by recycling water and helping farms conserve water PROTECTING LOCAL COMMUNITIES FROM FLOOD + $550 million for flood protection and repair, including $350 million for flood protection, $100 million for stormwater, mudslide, and other flood -related protections, and $100 million for urban multibenefit flood projects PROTECTING CALIFORNIA'S RIVERS, LAKES AND STREAMS + $162 million for river parkways and urban streams restoration +$30 million to connect habitat areas, including $10 million for the California Waterfowl Habitat Program + $25 million to restore rivers and streams in support of fisheries and wildlife, including $5 million for salmon and steelhead projects in Klamath -Trinity watershed + $60 million to improve wildlife and fish passage, including $30 million for Southern California steelhead habitat + $60 million for upper watersheds protection in the Sierra Nevada and Cascades + $30 million to improve conditions forfish and wildlife in streams PROTECTING COAST, BEACHES, BAYS, AND OCEANS + $175 million for coastal and ocean resource protection of beaches, bays, wetlands, lagoons, and coastal watersheds and wildlife areas + $40 million to assist coastal communities in adapting to climate change + $20 million for San Francisco Bay restoration SAFE PARKS FOR EVERY CHILD + $725 million for parks in neighborhoods with the greatest need + $285 million to cities, counties, and local park and open space districts to make local parks safer and improve facilities + $218 million to repair and improve state parks IMPROVING RESILIENCE TO CLIMATE CHANGE + $30 million for innovative farm practices that improve climate resilience + $50 million for forest restoration, fire protection and management for wildfire and climate change + $40 million to restore natural and community resources, including conversion of fossil fuel power plants to green space + $20 million for green infrastructure projects that benefit disadvantaged communities CONSERVING AND PROTECTING NATURAL AREAS + $160 million to state conservancies, including $87 million for rivers, lakes and streams, and $73 million for open green space + $200 million to restore the Salton Sea and prevent toxic air pollution + $137 million to the Wildlife Conservation Board, including $5 million for regional conservation investment strategies, $52 million for Natural Community Conservation Plan projects, and up to $10 million to the UC Natural Reserve System + $200 million to implement habitat restoration + $50 million to repair and improve state fish and wildlife areas PROMOTING RECREATION AND TOURISM AND SUPPORTING CONSERVATION JOBS + $25 million in grants for rural recreation, tourism and economic enrichment programs + $30 million to improve access to parks, waterways, natural areas, and outdoor recreation areas, including expanding outdoor experiences for disadvantaged youth + $40 million for state and local conservation corps for restoration projects and equipment + $18 million for wildlife and land conservation Paid for by Californians for Clean Water and Safe Parks, sponsored by Conservation Groups. Committee major funding from The Nature Conservancy Conservation Action Fund for clean water and parks, sponsored by environmental organizations B_4 Committee for Clean Water Natural Resources and Parks Californians depend on a safe and reliable transportation network to support our quality of life and a strong economy. In April 2017, California passed Senate Bill 1 (SB 1) — which will provide more than $5 billion annually to make road safety improvements, fill potholes, repair local streets, freeways, tunnels, bridges and overpasses and invest in public transportation in every California community. Road safety and transportation improvement projects are already underway or planned in every community, but this long- awaited progress could come to a halt unless voters take action in 2018. The Coalition to Protect Local Transportation Improvements has formed to support the June 2018 constitutional amendment protecting transportation funds from being diverted and to oppose the November 2018 measure to repeal transportation funds. Here's how you can help: SUPPORT Prop 69: June 2018 ballot measure: Prohibits the Legislature from raiding new transportation funds and ensures funds can only be used for transportation projects. Prop 69 extends constitutional protections to the new revenues generated by SB 1 that aren't currently protected and ensures these funds can only be used for transportation improvement purposes. The measure would prohibit the Legislature from borrowing or diverting these revenues for non - transportation purposes. This will ensure that all revenues from SB 1 can only be used for transportation improvement purposes. maxrPPOSE SB 1 Repeal: ember 2018 ballot measure: Would repeal SB 1 and rob our communities of vital l road safety and transportation improvement funds. Certain politicians are currently collecting signatures to try to repeal the Road Repair and Accountability Act of 2017 (SB 1) and stop critical investments in future transportation improvement projects. We need to build a strong coalition to oppose this measure now because its passage would: X Jeopardize public safety. According to the National Highway Traffic Safety Administration, poor roadways were a contributing factor in more than half of the 3,623 roadway fatalities on California roads in 2016. Currently, 89% of California counties have roads that are in poor or at -risk condition, and 25% of local bridges show significant deterioration. Roadway improvements at the state and local level will save lives and increase safety for the traveling public. This measure will cut funding currently dedicated to fixing roads and upgrading freeways, bridges, tunnels and overpasses to make them safer. C-1 OPPOSE the November 2018 ballot measure that would repeal SB 1 and rob our communities of vital local road safety and transportation improvement funds. X Take away road improvement funds dedicated to every community. SB 1 guarantees funds to every city and county to fix potholes, make safety improvements, ease traffic congestion and improve public transportation. These funds are already being put to use and California cities and counties have already identified 4,000 local projects for funding in 2017-18 and into the future. This measure would rob funding currently benefiting every California community and stop thousands of local road improvement projects from moving forward. Our local roads, streets and state highways already face a backlog of $132 billion and this measure will only worsen the crisis. X Make traffic congestion worse. Our freeways and major thoroughfares are among the most congested in the nation, and Californians spend too much time stuck in traffic away from family and work. This measure would make our traffic worse by repealing SB 1 funds that are dedicated to reducing traffic congestion. X Cost drivers and taxpayers more money in the long -run. Repealing the gas tax and vehicle fee will only save the average driver $10 per month. But it will cost drivers much more in the long -run because of the wear and tear on our vehicles caused by bad roads. The average driver spends $762 per year on front end alignments, body damage, shocks, tires and other repairs because of bad roads. It is important to fix our roads now vs. later as it costs 8 times more to fix a road than to maintain it. X Would hurt job -creation and our economy. A reliable transportation infrastructure is critical to get people to work, to move goods and services to the market and to support our economy. Furthermore, every $1 billion invested in transportation infrastructure supports 13,000 jobs a year. By repealing funding for road repairs and transportation improvements, this measure would eliminate 650,000 good -paying jobs and $100 billion dollars in economic growth that will be created fixing our roads over the next decade. Paid for by the Coalition to Protect Local Transportation Improvements, sponsored by business, labor, local governments, transportation advocates and taxpayers Committee Major Funding from California Alliance for Jobs Funding details at www.fppc.ca.gov C-2 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF RANCHO PALOS VERDES IN SUPPORT OF PROPOSITION 69, THE "TRANSPORTATION TAXES AND FEES LOCKBOX AND APPROPRIATIONS LIMIT EXEMPTION AMENDMENT" THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES RESOLVE AS FOLLOWS: WHEREAS, California's cities, counties and transportation agencies need dedicated funding to support transportation infrastructure road safety improvements, fill potholes, and repair local streets, highways, freeways, bridges and overpasses; and, WHEREAS, there is a statewide backlog of over $130 billion in needed road repairs, including $73 billion needed for local streets and roads; and, WHEREAS, last year's "Road Repair and Accountability Act" (SB 1 — Beall) will raise $5 billion annually in long-term, dedicated transportation funding to make road safety improvements, fill potholes and repair local streets, highways, bridges and overpasses, with the revenues split equally between state and local government projects; and, WHEREAS, these transportation revenues should have additional Constitutional protections to ensure funds are used only for transportation purposes; and, WHEREAS, Proposition 69 on the June 2018 ballot would add another layer of accountability by preventing the State Legislature from diverting or raiding any new transportation revenues for non -transportation improvement purposes. NOW, THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby resolve as follows: Section 1: The City of Rancho Palos Verdes hereby supports Proposition 69 on the June 2018 ballot to prevent new transportation funds from being diverted for non - transportation purposes. Section 2: The City of Rancho Palos Verdes supports and can be listed as a member of the Coalition to Protect Local Transportation Improvements, a diverse coalition of local government, business, labor, transportation and other organizations throughout the state, in support of Proposition 69. Section 3: Staff is directed to email a copy of this adopted resolution to Kyle Griffith of the Coalition to Protect Local Transportation Improvements campaign at kgriffith bcfpublicaffairs.com. D-1 PASSED, APPROVED and ADOPTED this to day of March 2018. Mayor ATTEST: City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Emily Colburn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2018-_, was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 6, 2018. City Clerk Resolution No. 2018 - Page 2 of 2 D-2 Consideration and Possible Action to Revise and Approve the City Manager's Office Records Retention Schedule Administrative Analyst II Cloke provided staff report. Council Members and Staff discussed records and email retention. Councilman Misetich moved, seconded by Mayor Pro Tem Duhovic to approve the City Manager's Records Retention Schedule and to retain all emails across all departments, for 5 years. The motion passed on the following roll call vote: AYES: Brooks, Duhovic, NOES: None ABSENT: Dyda (excused) Misetich and Mayor Campbell Consideration and Possible Action to Provide Direction on the Proposed Revisions to Rancho Palos Verdes Municipal Code Chapter 2.08 This item was continued to February 21, 2017, City Council Meeting. ITEMS REMOVED FROM THE CONSENT CALENDAR: Consideration and Possible Action to Support Assembly Bill No. 1 and Senate Bill No. 1 Regarding Local Street and Roadway Project Funding This item was removed by Mayor Pro Tem Duhovic from the Consent Calendar for separate consideration. Discussion ensued among Council Members. Councilwoman Brooks moved, seconded by Mayor Pro Tem Duhovic, to NOT accept the Staff recommendation to authorize the Mayor to sign the letters supporting Assembly Bill No. 1 (AB 1) and Senate Bill No. 1 (SB 1) regarding local street and roadway project funding The motion passed on the following roll call vote: AYES: Brooks, Duhovic, Misetich, and Mayor Campbell NOES: None ABSENT: Dyda (excused) Consideration and Possible Action to Award a Contract for the Construction of the Palos Verdes Drive East Traffic Safety (Guardrails) Project (Federal -Aid Highway Safety Improvement Program Project #6544) City Council Minutes Adjourned Regular Meeting February 7, 2017 Page 8 of 9 E-1 November 20, 2017 Initiative 17-0033 (Arndt. #1) The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure: ELIMINATES RECENTLY ENACTED ROAD REPAIR AND TRANSPORTATION FUNDING BY REPEALING REVENUES DEDICATED FOR THOSE PURPOSES. REQUIRES ANY MEASURE TO ENACT CERTAIN VEHICLE FUEL TAXES AND VEHICLE FEES BE SUBMITTED TO AND APPROVED BY THE ELECTORATE. INITIATIVE CONSTITUTIONAL AMENDMENT. Repeals a 2017 transportation law's tax and fee provisions that pay for repairs and improvements to local roads, state highways, and public transportation. Requires the Legislature to submit any measure enacting specified taxes or fees on gas or diesel fuel, or on the privilege to operate a vehicle on public highways, to the electorate for approval. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Reduced annual state transportation tax revenues of $2.9 billion in 2018-19, increasing to $4.9 billion annually by 2020-21. These revenues would primarily have supported state highway maintenance and rehabilitation, local streets and roads, and mass transit. In addition, potentially lower transportation tax revenues in the future from requiring voter approval of such tax increases, with the impact dependent on future actions by the Legislature and voters. (17-0033.) F-1 1 7-0033 M"L#I BELL, McANDIREWS & HILT'ACHK, LLP ATTORNEYS AND COUNSELORS AT LAW 455 CAPITOL MALL. SUITE 600 SACRAMENTO. CALIFORNIA 95814 (916) 442-7797 FAX (916) 442-7759 www. hmhlaw.com October 13, 2017 Initiative Coordinator Office of the Attorney General State of California PO Box 994255 Sacramento, CA 94244-25550 RECEIVER OCT 13 2017 INITIATIVE COORDINATOR ATTORNEY GENERAL'S OFFICE Re: Amendment of Proposed Initiative No. 17-0033 "Voter Approval for Increases in Gas and Car Tax" Dear Initiative Coordinator: With this letter I submit an amendment to the above -referenced proposed statewide initiative measure in accordance with Elections Code section 9002. I am the proponent of the measure and a registered voter in the State of California. Please prepare a circulating title and summary of the measure using the amended language as provided by law. Enclosed with this letter please find the text of the proposed measure as amended. Thank you for your attention to processing my request. Respectfu Submitted, r Thomas W. Hiltachk F-2 1 7- 0 0 3 3 h,,_ , J INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS SECTION 1. STATEMENT OF FINDINGS AND PURPOSES (a) California's taxes on gasoline and car ownership are among the highest in the nation. (b) These taxes have been raised without the consent of the people. (c) Therefore, the people hereby amend the Constitution to require voter approval of the recent increase in the gas and car tax enacted by Chapter 5 of the Statutes of 2017 and any future increases in the gas and car tax. SECTION 2. VOTER APPROVAL FOR INCREASES IN GAS AND CAR TAX Section 3.5 of Article XIII A of the California Constitution is added to read: Sec. 3.5(a) Notwithstanding any other provision of law, the Legislature shall not impose, increase or extend any tax, as defined in section 3, on the sale, storage, use or consumption of motor vehicle gasoline or diesel fuel, or on the privilege of a resident of California to operate on the public highways a vehicle, or trailer coach, unless and until that proposed tax is submitted to the electorate and approved by a majority vote. (b) This section does not apply to taxes on motor vehicle gasoline or diesel fuel, or on the privilege of operating a vehicle or trailer coach at the rates that were in effect on January 1, 2017. Any increase in the rate of such taxes imposed after January 1, 2017 shall cease to be imposed unless and until approved by the electorate as required by this section. F-3