November 2018 Elections- Four Months Out

by Jessica Duboff

After months of signature gathering, verifications and last minute legislative negotiations, Secretary of State Alex Padilla certified the state ballot at the end of June, solidifying 12 measures for California voters to decide in November. The Chamber’s Board of Directors has analyzed a number of the measures to date, taking positions and authorizing staff to work with relevant campaigns to ensure the business community voice is communicated to voters.

Proposition 1- Veterans & Affordable Housing Bond Act: SUPPORT
Prop 1 would authorize $4 billion in bonds for affordable housing programs and a veteran's homeownership program. This will help address our housing crisis by investing additional resources in existing programs.

Proposition 2- No Place Like Home Act: SUPPORT
Prop 2 would authorize shifting $2 billion from Mental Health Services Act, passed in 2004, towards homeless housing and supportive services for the mentally ill population. The Chamber supported the passage of 2016 legislation to shift the funds, but that has been tied up in the courts and this measure would release those dollars to begin building homes.

Proposition 4- Children’s Hospitals Construction Bond Act: SUPPORT
Prop 4 would authorize $1.5 billion in bonds for California’s 13 regional Children’s Hospitals and five University of California acute hospitals for construction, expansion, renovation and acquisition of latest technology and life-saving equipment. Children’s Hospitals perform 97 percent of all pediatric organ transplants, 96 percent of all pediatric heart surgeries and conduct 96 percent of pediatric cancer treatment.

Proposition 6- Eliminates Recently Enacted Road Repair and Transportation Funding: OPPOSE
Prop 6 would repeal SB 1, the Road Repair & Accountability Act of 2017, which is set to invest $5.2 billion annually to fix roads, bridges and freeways throughout the state. The Chamber strongly supported SB 1, as modern, maintained infrastructure is foundational to our economic health.

Proposition 8- California Limits on Charges for Dialysis Initiative: OPPOSE
Prop 7 would limit the amount outpatient kidney dialysis clinics may charge for patient care and mandate rebates to insurers when total revenue exceeds 115 percent of certain costs. However, the definition of "patient care services costs," excludes many federally required and critical parts of operating a clinic. Without accounting for the costs of those services, clinics could be forced to limit hours or close entirely, leaving patients to emergency rooms.

Proposition 9- Division of California into Three States: OPPOSE
Prop 9 would direct the Governor to request that Congress begin the approval process to divide California into three states - Northern California, Southern California and California. As the world’s 5th largest economy, this measure would greatly damage business and residents, as well as create massive uncertainty around existing state infrastructure, education systems, taxes and laws.

Proposition 10- Expands Local Government’s Authority to Enact Rent Control on Residential Property: OPPOSE
Prop 10 would repeal the Costa-Hawkins Rental Act, which was passed in 1995 to limit municipalities’ ability to enact rent control laws stricter than the statewide standard and provided a toolbox for owners to adjust rental rates when a unit is voluntarily vacated. Rent control is not the same thing as affordable housing; expanding it disincentivizes new construction, makes it harder to fund necessary upgrades and maintenance and is the wrong solution to our housing crisis.

The Chamber will continue to explore the impacts and weigh in on the remaining five state measures, as well as a County stormwater parcel tax and two measures under consideration by the City of Los Angeles to create a municipal bank and direct a certain percentage of cannabis tax revenues to social equity and youth education programs.

As has become common, these general election ballots are long and are often asking for simple yes or no votes on complicated issues. The engagement and voice of the business community is vital and we urge you to get involved and share your stories on the measures that impact you.

And that's the Business Perspective.