PROP 26 - REQUIRING CERTAIN STATE & LOCAL FEES BE APPROVED BY 2/3 VOTE

PROP 26 IN BASIC TERMS:

To pass fees, levies, charges and tax revenue allocations, Prop 26 seeks to change the current simple majority vote requirement to a two- thirds majority vote . On State items this would be a two-thirds vote from the legislature. For City items, this would be a 2/3 majority by voters.

On the State side, a 2/3 vote would be required for certain tax measures , "that do not result in a net increase in revenue."

A LITTLE CIVICS REFRESHER:

- Simple Majority - When the highest number of votes determines the result. At a minimum it is a subset "consisting of more than half of the group."

- Super Majority - When more than a "simple majority" vote is required to approve an item. In California we currently have a 2/3 Super majority requirement for a State budget and for Parcel tax ballot measures. We have a 55% super majority for a School Bond measures.

- According to the Constitution of the State of California, Fees do not require a 2/3 Super Majority vote to be enacted. Fees only require a Simple majority.

- Budgets and taxes currently require a 2/3 Super Majority vote to be passed.

WEIRD FACTOID:

Supporters of Prop 26 call it the "Stop Hidden Taxes Initiative."

Opponents of Prop 26 call it the "Polluters Protection Act."

ARGUMENTS FOR A YES ON 26:

- Supporters believe fees, levies, etc are in fact taxes, and therefore should be subject to the state constitutional rule of a 2/3 majority vote required for income or sales tax increases.

- The Hidden taxes are making it difficult for businesses to stay in California.

- State and Local officials have been using "loopholes" to raise taxes by "disguising them as fees."

As fees they can be passed with a simple majority at the state level.

On the city level they then pass without a public vote.

ARGUMENTS FOR A NO ON 26

- Opponents say Prop 26 "will make it harder to impose fees on corporations that cause environmental or public health problems. For example, it would be harder to impose so-called "pollution fees" on polluting corporations because it will take a higher vote to pass such fees than is currently needed."

- Prop 26 is a "corporate loophole." It allows "companies cloak themselves as defenders of jobs and fairness, when they are gaming the system to maximize profits."

- If local governments are required to hold an election every time they want to impose a new fee, Proposition 26 will end up "harm[ing] local public safety and health, by requiring expensive litigation and endless elections."

PROP 26 A SUMMARY

Y - On Prop 26 allows us to change requirement for passing State fee, levies, and tax allocation to a 2/3 legislative majority vote, from the current simple majority. It will also require local 2/3 voter majority elections for City items.

N - On Prop 26 will have the State and City maintain the Simple Majority vote requirements for passing fee, levies, and tax allocations.

For more information on Prop 26 go to http://ballotpedia.org/wiki/index.php/California_Proposition_26,_Supermajority_Vote_to_Pass_New_Taxes_and_Fees_%282010%29

Also watch ABC7's coverage on this item.