CFRW Capitol Update May 13, 2024

Initiatives and Referenda Cleared for Circulation

The Attorney General prepares a circulating title and summary of the chief purpose and points of a proposed initiative measure. Proposed initiative measures are cleared for circulation on the day the circulating title and summary is sent to the initiative proponent(s). No petition may be circulated for signatures before it has been cleared to do so by the Attorney General.

Please note: Counties have 8 business days after the filing of a petition to determine the total number of signatures affixed to the petition and transmit this information to the Secretary of State’s office (Elections Code section 9030(b)). If no signatures are submitted, a proposed initiative measure will fail on the 9th business day after its circulation deadline.

1967. (23-0025A1)
LIMITS ENVIRONMENTAL LAWSUITS CHALLENGING NEW HOUSING CONSTRUCTION. CAPS DEVELOPMENT FEES ON NEW HOUSING. INITIATIVE STATUTE.

Summary Date: 11/13/23 | Circulation Deadline: 05/13/24 | Signatures Required: 546,651
Proponent(s): Stephen Hilton
Prohibits private parties from filing lawsuits challenging new housing construction based on alleged non-compliance with the California Environmental Quality Act (CEQA). Authorizes only district attorneys to file such lawsuits, as well as the Attorney General if the project is located in multiple counties. Caps fees that local and state agencies may impose on builders for construction of new homes and related infrastructure. Caps do not apply to regulatory costs authorized by statute, school district fees, bond repayments, or costs of providing utility service and roadway access to new homes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Reduced local government development fee revenue, likely at least hundreds of millions of dollars per year, and potentially exceeding $1 billion per year. Uncertain, but potentially significant, savings to state and local governments as a result of lower project costs due to fewer CEQA lawsuits being filed against public projects. (23-0025A1)

1968. (23-0026A1)
REQUIRES STATE FUNDING OF RELIGIOUS AND NONRELIGIOUS PRIVATE SCHOOLS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

Summary Date: 11/17/23 | Circulation Deadline: 05/15/24 | Signatures Required: 874,641
Proponent(s): Kevin McNamee, Marion A. Marshall, Maria Flores, Cecilia Iglesias, Benito Bernal
Requires state to provide yearly voucher payments ($17,000 initially, adjusted annually) into Education Savings Accounts for California residents in grades TK-12 attending religious and nonreligious private schools anywhere in the United States. Payments will come from the General Fund and property tax revenues currently allocated to public schools (including charter schools). Eliminates constitutional prohibition on state funding of religious and nonreligious private schools. Prohibits state from requiring certain curriculum, disciplinary, or teacher credentialing policies as condition of funding. Creates privately appointed board to distribute payments of public funds. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state costs, likely ranging from $6.3 billion to $10 billion per year, to provide funding for students currently enrolled in private schools. The state could pay for these costs with revenues currently reserved for public schools (or other programs in the state budget). To the extent public school students shift to private schools, the state would have additional costs—likely at least several billion dollars annually—that would be offset by lower spending on public schools. Over time, state costs for public school facilities probably would decrease by a couple hundred million dollars per year. Public schools would experience reductions in state funding and some federal and local funding—as well as reductions in various costs—based on decreases in their enrollment. All of these effects assume the state can legally implement the program to its full extent. (23-0026A1)
 

1969. (23-0027A2)
RESTRICTS RIGHTS OF TRANSGENDER YOUTH. INITIATIVE STATUTE.
Summary Date: 11/29/23 | Circulation Deadline: 05/28/24 | Signatures Required: 546,651
(25% of Signatures Reached 04/09/2024 (PDF))
Proponent(s): Jonathan Zachreson

  • Requires public and private schools and colleges to restrict gender-segregated facilities like bathrooms to persons assigned that gender at birth; prohibit transgender female students (grades 7+) from participating in female sports. Repeals law allowing students to participate in activities and use facilities consistent with their gender identity.
  • Requires schools to notify parents whenever a student under 18 asks to be treated as a gender differing from school records without exception for student safety.
  • Prohibits gender-affirming health care for transgender patients under 18, even if parents’ consent or treatment is medically recommended.

 
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potentially minor savings in state and local health care costs of up to millions of dollars annually from no longer paying for prohibited services for individuals under the age of 18. These savings could be affected by many other impacts, such as individuals seeking treatment later in life. Minor administrative and workload costs to schools, colleges, and universities, up to several millions of dollars initially. Potential, but unknown, cost pressures to state and local governments related to federal fiscal penalties if the measure results in federally funded schools, colleges, universities, or health care providers being deemed out of compliance with federal law. (23-0027A2)
 

1970. (23-0028)
CONSTITUTIONAL REQUIREMENTS ON PUBLIC EDUCATION. INITIATIVE CONSTITUTIONAL AMENDMENT.

Summary Date: 12/21/23 | Circulation Deadline: 06/18/24 | Signatures Required: 874,641
Proponent(s): James J. Cowie
Amends California Constitution to require the state and its school districts to “provide all public school students with high-quality public schools,” the requirements of which will depend on how the measure is implemented by the Legislature, state agencies, and public schools (including charter schools), and interpreted by court decisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: No direct fiscal effects on the state or public schools because the measure does not require any change to current policies or programs. Depending on how the measure is legally interpreted by the courts and implemented by the state and public schools, there could be fiscal effects that are unknown and highly uncertain. (23-0028)

1971. (23-0029A1)
EXPANDS STATE HEALTH CARE PROGRAM FOR CHILDREN WITH CERTAIN MEDICAL CONDITIONS. INITIATIVE STATUTE.
Summary Date: 12/27/23 | Circulation Deadline: 06/24/24 | Signatures Required: 546,651
(25% of Signatures Reached 01/26/2024 (PDF))
Proponent(s): Ann-Louise Kuhns
Expands California Children’s Services Program, which provides health care to low-middle income children under 21 with specified medical conditions, by requiring state to provide:

  • financial assistance to families not eligible for Program services for certain out-of-pocket treatment costs for covered conditions;
  • new annual grants to hospitals that provide Program services;
  • increased payment rates for physicians that are at least the federal Medicare rate; and
  • coverage for additional medical conditions including cancer, heart disease, certain infectious diseases, and cerebral palsy that are currently covered only by regulation, not by statute

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State General Fund cost potentially ranging in the hundreds of millions of dollars to around a billion dollars each year to assist families with the cost of health care for children with qualifying serious and chronic diseases, as well as to increase payments to providers in the California Children’s Services program.  (23-0029A1)

1972. (23-0030A1)
LEGALIZES ONLINE AND IN-PERSON SPORTS WAGERING AND OTHER NEW TYPES OF GAMBLING. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
Summary Date: 01/02/24 | Circulation Deadline: 07/01/24 | Signatures Required: 874,641
Proponent(s): Ryan Tyler Walz
Legalizes online sports wagering statewide, and in-person sports wagering, roulette, and dice games on tribal lands, all of which currently are prohibited, if operated by federally recognized Indian tribes under gaming compacts approved by Legislature, the model compact approved by this measure, or state law enacted by this measure. Prohibits sports wagering by persons under 21. Requires participating tribes to pay up to 25% of sports-wagering profits to nonparticipating tribes and up to 1% to the state for regulatory costs. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state revenues that could reach into the tens of millions of dollars annually, depending on how the measure is implemented and legally interpreted. Some portion of these revenues would reflect a shift from other existing state and local revenues. Increased state regulatory costs, potentially in the low- to mid-tens of millions of dollars annually. Some or all of these costs would be offset by the increased revenue or reimbursements to the state. (23-0030A1)

1973. (23-0031)
ALLOWS FOR LEGALIZATION OF ONLINE AND IN-PERSON SPORTS WAGERING. INITIATIVE CONSTITUTIONAL AMENDMENT.
Summary Date: 01/02/24 | Circulation Deadline: 07/01/24 | Signatures Required: 874,641
Proponent(s): Ryan Tyler Walz
Amends California Constitution to authorize the Legislature or the voters by initiative to legalize online and in-person sports wagering, which currently is prohibited, if offered by federally recognized Indian tribes. Authorizes the Legislature to approve gaming compacts with tribes choosing to offer sports wagering. Such compacts must:

  • prohibit wagering by persons under 21;
  • limit wagering to professional, collegiate, and amateur sporting events, and prohibit wagering on amateur sports involving children or events involving animals other than horses; and
  • require revenue sharing with non-gaming tribes and the state.

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: No immediate fiscal effects on the state and local governments as the Legislature would be allowed—but not required—to authorize sports wagering. If the Legislature authorizes sports wagering, uncertain increase in state and local government costs and revenues depending on various factors including the specific regulatory and other requirements adopted. Federal courts have generally limited tribal payments to state and local governments to the amount necessary to cover their regulation and other costs related to gaming activities. (23-0031)

1974. (23-0032A1)
DECRIMINALIZES PSYCHEDELICS FOR PERSONAL USE, MEDICAL TREATMENT, AND RESEARCH. INITIATIVE STATUTE.
Summary Date: 01/02/24 | Circulation Deadline: 07/01/24 | Signatures Required: 546,651
Proponent(s): David Hodges, Tomas Garrett, Chelsea Candelaria, Carsten Fisher
For individuals 18 and over, decriminalizes personal possession, cultivation, and use of psychedelic plants and substances, including psilocybin, DMT, ibogaine, LSD, MDMA, mescaline, and peyote. Allows medical professionals to recommend psychedelic treatments for mental health conditions and other health disorders. Allows research into therapeutic and medical applications of psychedelics. Allows businesses to grow and manufacture psychedelics, and to sell psychedelics to individuals for medical purposes. Requires psychedelics businesses with 50+ employees to hold annual employee votes regarding unionization. Authorizes resentencing, reduction, or dismissal of prior psychedelics-related convictions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potential reduction in state and local regulatory revenues that could result in regulatory costs exceeding revenues by more than $100 million annually. Alternatively, changes in regulatory costs could be roughly offset by changes in regulatory revenue. The actual effect would depend on the way the measure is legally interpreted and implemented. Uncertain net effect on state and local tax revenue that would depend on the way the measure is legally interpreted and implemented. The potential revenue decrease could reach the hundreds of millions of dollars annually. The potential revenue increase would likely be significantly smaller. Net reduction in state and local costs that could eventually reach around a few million dollars annually related to enforcing entheogenic substance-related offenses; handling the related criminal cases, resentencing, and sealing of records in the court system; and incarcerating and supervising people convicted of entheogenic substance-related offences. (23-0032A1)
 

1975. (23-0034)
ESTABLISHES NEW “UNIVERSITY OF CALIFORNIA ONLINE.” INITIATIVE CONSTITUTIONAL AMENDMENT.

Summary Date: 01/10/24 | Circulation Deadline: 07/08/24 | Signatures Required: 874,641
Proponent(s): Boyd Roberts
California’s public higher education systems— University of California, California State University, and California Community Colleges— currently offer courses in person and online. This measure would amend the California Constitution to require creation of an online public university named “University of California Online” with two divisions: one providing online courses for credit towards an academic degree, open to anyone who pays tuition; and one providing free public access to all online courses not for credit. Requires tuition for for-credit courses to be based on their cost, and additional fees for most out-of-state students. Requires State Treasurer to issue bonds to fund University of California Online, repaid from tuition. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Operating a new public online university could cost in the hundreds of millions of dollars to low billions of dollars annually. All of the cost is to be covered through student tuition revenue generated by the new university. The measure is not intended to have any direct fiscal impact on state or local governments. (23-0034)

 1976. (23-0035A1)
CREATES NEW MONETARY PENALTIES FOR INJURIES TO MINORS CAUSED BY CERTAIN SOCIAL MEDIA COMPANIES. INITIATIVE STATUTE.

Summary Date: 02/21/24 | Circulation Deadline: 08/19/24 | Signatures Required: 546,651
Proponent(s): James P. Steyer
Under current law, individuals may sue to recover their actual monetary damages for injuries caused by a company’s negligence (failure to act with ordinary care). This measure would make social media companies with annual revenues exceeding $100,000,000 liable for additional monetary penalties for injuries (such as addiction or self-harm) caused by the platform’s negligence to persons under 18 years old. Penalties would be either: (1) $5,000 per violation, up to $1,000,000 per minor, or (2) three times the minor’s actual damages. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state court costs likely in the millions of dollars depending on the type and volume of additional civil cases filed in state courts and how they are resolved. Uncertain impact on state and local tax revenue that would depend primarily on how social media platforms respond to the measure. (23-0035A1).