Section 1: Title.
This measure shall be known and may be cited as the "Improving Classroom Education Act."
Section 2: Findings and Declaration of Purpose.
1. We must invest in our childrens education. Providing a quality education for our children is the most important thing
we can do for their future and the future of our state.
2. California must make children and classrooms the priority in school funding.
3. California schools continue to be underfunded. Education funding in California has been below the national average for
more than a decade.
4. Because of the state budget crisis, education spending in California has been cut by billions of dollars. These cuts
have resulted in teacher lay-offs, fewer textbooks and other classroom materials, as well as increased class size. We need
to restore these cuts and ensure that our classrooms are adequately funded.
5. As a result of chronic underfunding, California class sizes are among the largest in the nation, denying children the
individualized learning they deserve.
6. California must improve student performance by increasing funding to reduce class sizes, provide new instructional supplies
and materials, offer teacher training and increase teacher compensation in order to attract the best and brightest into the
teaching profession.
7. Studies show that children who go to preschool do better in reading and math and are more likely to graduate
from high school and college. That is why we should give all children access to voluntary universal preschool to help
them succeed.
8. A well-educated workforce increases productivity and quality for California businesses.
9. Education programs should be funded without raising homeowners property taxes or reducing important services such as
police and fire protection.
10. Unlike single-family residences, commercial buildings produce income for their owners. Business property changes ownership
less often than houses, so the share of property taxes paid by businesses has been declining. Furthermore, California commercial
real property tax rates are among the lowest in the nation. It makes sense, therefore, to tax commercial real property
at a higher rate than private homes. The increased revenues will be used to improve the quality of Californias public schools.
Small businesses will be protected by new exemptions from the personal property tax.
11. We must provide protections from waste and mismanagement. None of the funds in this initiative will be used for administrative
overhead. It also provides for criminal penalties, loss of credentials and/or fines for administrators who misuse school funds.
12. The annual audit required by this initiative will ensure that every penny goes into our classrooms, where it is needed
most.
13. We must ensure that these funds are used for improving learning. None of the funds in this initiative can be used to
replace or supplant existing funding.
Section 3. Purpose and Intent.
This measure is not intended to alter or repeal any exemption currently applicable to taxes on real property or to increase
or in any way affect the property taxes paid by homeowners on noncommercial property.
Section 4. Section 5.5 is hereby added to Article IX of the Constitution of the State of California, to read as follows:
Sec. 5.5. (a) The Improving Classroom Education Fund is hereby created in the State Treasury to be held in trust
for the purposes set forth below and is continuously appropriated for the support of school districts as follows:
(1) Two-thirds (2/3) for the support of the K-12 educational program, the funds to be distributed to school districts
based on enrollment;
(2) One-third (1/3) to provide voluntary universal pre-school for children one year prior to kindergarten, the funds
to be distributed based on preschool enrollment.
(b) Improving Classroom Education Funds dedicated to the support of the K-12 educational program shall not be used to
pay administrative costs and may be used for the following educational purposes only:
(1) To reduce class size in grades kindergarten through 12, inclusive.
(2) To purchase textbooks and instructional materials, supplies, and equipment.
(3) To provide teacher salaries and benefits that will encourage qualified individuals to become teachers and to remain
teachers in Californias public schools.
(4) To provide training for teachers.
(c) Improving Classroom Education Funds dedicated to the support of voluntary, universal preschool may only be used to
provide preschool programs, including:
(1) To provide salaries and benefits for certificated, permit, and classified employees, provided, however, that no
Improving Classroom Education Funds shall be used for administrative costs other than those for clerical functions such as
maintaining pupil and personnel records;
(2) To provide training for teachers;
(3) To purchase textbooks and instructional materials, supplies, and equipment.
(4) For renovation, rental, or leasing of facilities, provided that Improving Classroom Education Funds shall not be used
for construction of new facilities;
(5) For purchase of school furniture and other school equipment.
(d) The amounts deposited in the Improving Classroom Education Fund shall be used exclusively for the purposes set forth
in this section. No moneys in the Improving Classroom Education Fund shall be used to supplant federal, state, or local funds
used for educational programs. The Legislature shall set penalties, including loss of credentials, fines, and/or criminal
prosecution for school district administrators who misuse funds appropriated and allocated pursuant to this Section and Section 5.6
of this Article.
(e) None of the provisions of this Section or of Section 5.6 shall alter or affect any right to equal protection provided
by this Constitution.
Section 5. Section 5.6 is hereby added to Article IX of the Constitution of the State of
California:
Sec. 5.6. (a) Elementary and unified school districts shall provide for a program of free, voluntary preschool for
children one year prior to kindergarten. The program shall be staffed by school districts or combinations of school
districts or county offices of education using employees of a school district or a county office of education.
(b) School districts shall have a transition period to implement the requirements of this Section as provided by law.
Section 6. Section 1 of Article XIII A of the Constitution of the State of California is
hereby amended
to read:
Sec. 1 (a). The Except as provided in subdivisions (b), (e) and (f), the maximum amount
of any ad valorem tax on residential real property shall not exceed One percent (1%) of the full cash value of such
property. No new ad valorem taxes shall be imposed on residential real property except for taxes identified in subdivisions
(e) and (f). The one percent (1%) tax to shall be collected by the counties and apportioned according
to law to the districts within the counties.
(b) Notwithstanding any other provision of law or of this Constitution, in addition to the ad valorem property tax on real
property imposed pursuant to subdivision (a), the following ad valorem taxes are imposed on commercial real property.
(1) On commercial real property other than commercial residential rental property, an additional ad valorem property tax
at the rate of .55 percent of the full cash value of that property.
(2) On commercial residential rental property, an additional ad valorem property tax at a rate, as prescribed by statute,
not greater than .55 percent of the full cash value of that property.
(c) The ad valorem tax imposed by subdivision (b) shall be collected by the counties and transferred to the
State Treasury for distribution pursuant to Section 8.6 of Article XVI.
(d)(1) For purposes of this section, "residential real property" means any of the following:
(A) An owner-occupied single-family dwelling unit which is intended to be used and is used primarily as a permanent
residence;
(B) A second home and the land on which that dwelling unit is constructed;
(C) Unimproved real property that is zoned for a single-family residential dwelling.
(2) For purposes of this section, the following property shall not be considered commercial real property:
(A) Real property used for commercial agricultural production, as defined by statute;
(B) Open space and historically significant property as defined in Section 8 of Article XIII;
(C) Taxable government-owned property as defined in Section 11 of Article XIII.
(3) For purposes of this section, "commercial real property" means all real property not defined in paragraphs (1)
or (2) or not otherwise exempt from taxation pursuant to any provision of this Constitution.
(b) (e) The limitations provided for in subdivisions (a) and (b) shall
not apply to ad valorem taxes or special assessments to pay the interest and redemption charges on any of the following:
(1) Indebtedness approved by the voters prior to July 1, 1978.
(2) Bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by
two-thirds of the votes cast by the voters voting on the proposition.
(3) Bonded indebtedness incurred by a school district, community college district, or county office of education for the
construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping
of school facilities, or the acquisition or lease of real property for school facilities, approved by 55 percent of the
voters of the district or county, as appropriate, voting on the proposition on or after the effective date of the measure
adding this paragraph. This paragraph shall apply only if the proposition approved by the voters and resulting in the bonded
indebtedness includes all of the following accountability requirements:
(A) A requirement that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIII A,
Section 1(b)(e)(3), and not for any other purpose, including teacher and administrator salaries
and other school operating expenses.
(B) A list of the specific school facilities projects to be funded and certification that the school district board, community
college board, or county office of education has evaluated safety, class size reduction, and information technology needs
in developing that list.
(C) A requirement that the school district board, community college board, or county office of education conduct an annual,
independent performance audit to ensure that the funds have been expended only on the specific projects listed.
(D) A requirement that the school district board, community college board, or county office of education conduct an annual,
independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for
the school facilities projects.
(c) (f) Notwithstanding any other provisions of law or of
this Constitution, school districts, community college districts, and county offices of education may levy a 55 percent
vote ad valorem tax pursuant to subdivision (b) (e) on all property described in subdivisions (a)
and (b) that is not otherwise exempt from taxation.
Section 7. Section 3.7 is added to Article XIII A of the California Constitution to read:
Sec. 3.7. In addition to any personal property tax exemption established in accordance with Section 2 of Article XIII,
a personal property tax exemption may be established by statute to provide aid to businesses in that amount as provided for
in paragraph (1) of subdivision (b) of Section 8.6 of Article XVI.
Section 8. Section 8.3 is added to Article XVI of the California Constitution to read:
Sec. 8.3 (a) Funds appropriated pursuant to subdivision (a) of Section 5.5 of Article IX shall not
be deemed to be part of "total allocations to school districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIIIB" as that term is used in paragraphs (2) and (3) of subdivision (b)
of Section 8.
(b) Revenues derived from the taxes imposed pursuant to subdivision (b) of Section 1 of Article XIIIA
shall not be deemed to be "General Fund revenues which may be appropriated pursuant to Article XIIIB" as that term is used
in paragraph (1) of subdivision (b) of Section 8 nor shall they be considered in the determination of "per
capita General Fund revenues" as that term is used in paragraph (3) of subdivision (b) and in subdivision (e)
of Section 8.
(c) Notwithstanding Section 16, revenues derived from the taxes imposed on taxable property in a redevelopment
project pursuant to subdivision (b) of Section 1 of Article XIIIA shall not be used for any purpose other than
those set forth in Section 8.6.
Section 9. Section 8.6 is added to Article XVI of the California Constitution to read:
Sec. 8.6 (a). During each fiscal year, from the revenues generated by the additional ad valorem property tax imposed pursuant
to subdivision (b) of Section 1 of Article XIII A, the Controller shall calculate and transfer to the
State General Fund the amount necessary to offset the decrease in State personal and corporate income tax revenues caused
by increased deductions taken as a result of the additional ad valorem property tax imposed pursuant to paragraph (1)
of subdivision (b) of Section 1 of Article XIII A.
(b) The Controller shall allocate the revenues remaining after the distribution made pursuant to subdivision (a) as
follows:
(1) Ten percent for aid to businesses as set forth in law;
(2) The remainder, including any interest earned thereon, to the Improving Classroom Education Fund for allocation and
distribution as set forth in Sections 5.5 and 5.6 of Article IX.
Section 10. Section 14 is hereby added to Article XIIIB of the Constitution to read:
Sec. 14 (a). For purposes of this article, "proceeds of taxes" shall not include the revenues derived from the taxes
imposed pursuant to subdivision (b) of Section 1 of Article XIIIA.
(b) For purposes of this article, "appropriations subject to limitation" of each entity of government shall not include
appropriations of revenues derived from the taxes imposed pursuant to subdivision (b) of Section 1 of Article XIIIA.
(c) The duty to collect the tax imposed by subdivision (b) of Section 1 of Article XIIIA shall not be considered
a new program or higher level of service mandated by the State for purposes of this article.
Section 11. Chapter 1.5 is hereby added to Part 9 of Division 1 of Title 1 of the Education
Code, to read as follows:
CHAPTER 1.5 THE IMPROVING CLASSROOM EDUCATION ACT
ARTICLE 1. GENERAL PROVISIONS
Sec. 14100. For purposes of this Chapter and Sections 5.5 and 5.6 of Article IX of the California Constitution,
the following shall apply:
(a) "School districts" shall include county offices of education and any programs or schools operated under the supervision
of a county office of education.
(b) "Teacher" means a non-management certificated or teacher permit employee of a school district or county office
of education.
(c) "Enrollment" in the K-12 educational program includes pupils enrolled in a charter school all of whose teachers
hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a teacher in other
public schools would be required to hold.
Sec. 14101. Each school district shall prepare and file with the State Superintendent of Public Instruction an annual
audit of the funds received from the Improving Classroom Education Fund. The audit may be prepared separately or as part of
any annual audit required by the State, but it shall show how the funds were spent by category and program. School districts
shall post the audit reports required pursuant to this Section on their Internet web sites. If a district does not maintain
an Internet web site, it shall forward its audit to the State Superintendent of Public Instruction, who shall post it on the
State Superintendents web site.
Sec. 14102. The Superintendent of Public Instruction shall not include funds distributed pursuant to this chapter
in calculating and apportioning funds as provided in Sections 2558, 42238, or 56836.08, nor shall such revenues
be included in a school districts expenditures for purposes of calculating the districts required reserve for economic uncertainties
pursuant to Section 33128.
ARTICLE 2. VOLUNTARY UNIVERSAL PRESCHOOL
Sec. 14110. (a) By July 1, 2011, every elementary and unified school district shall provide a program of free,
voluntary preschool to all children in their districts one year prior to kindergarten, provided, however, that districts
may join together to meet their obligation under this Section. A high school district may provide a voluntary preschool program
for children of its own pupils.
(b) For purposes of the Improving Classroom Education Act, "one year prior to kindergarten" means access to a program that
commences one year prior to the date a child is eligible to attend kindergarten.
Sec. 14111. For purposes of Section 5.6 of Article IX of the California Constitution, a program of free, voluntary
preschool for children one year prior to kindergarten shall include all of the following:
(a) Classes of no more than 20 children taught by at least one teacher holding a teaching credential or permit issued
by the State Commission on Teacher Credentialing;
(b) A minimum of 180 instructional minutes per day for 175 days each year;
(c) A curriculum that is age and developmentally appropriate and aligned with statewide academic standards for elementary
education.
Sec. 14112. (a) School districts shall have a transition period of five years from July 1, 2005 to implement
the requirements of this Section. The transition period may be extended for up to two years as provided in subdivision (f).
(b) During the transition period, districts may use funds from the universal preschool portion of the Improving Classroom
Education Fund for any of the purposes identified in subdivision (c) of Section 5.5 of Article IX of the California
Constitution, as well as for workforce recruitment and certification, provided, however, that districts shall only use transition
funding to further the implementation of a program of free, voluntary preschool.
(c) During the transition period, the State Controller shall allocate and distribute the amounts available
to school districts from the universal preschool portion of the Improving Classroom Education Fund as follows:
(1) By July 15 of each year during the transition period the State Controller shall determine the projected amount
that will be transferred during that fiscal year into the portion of the Improving Classroom Education Fund dedicated to universal
preschool pursuant to Section 5.5 of Article IX.
(2) The Controller shall determine the statewide per pupil amount available to school districts for every child
enrolled in a universal preschool program during each fiscal year by dividing seventy percent (70%) of the statewide
kindergarten enrollment for the prior school year into the amount determined pursuant to paragraph (1).
(3) By the tenth day of each month during the school year, school districts shall report to the Controller their average
enrollment for the previous month in preschool programs that meet the requirements of Section 14111, including programs
that meet the requirements of Section 14114.
(4) At least twice during the school year, the Controller shall determine a school districts average preschool enrollment
using the figures submitted pursuant to paragraph (3) and multiply that by the statewide per pupil amount determined
pursuant to paragraph (2). The resulting amount shall be apportioned and distributed to the school districts in at least
two payments during the fiscal year for support of voluntary universal preschool programs, provided, however, that by September 10,
2005 the Controller shall distribute to school districts an amount equal to the statewide per pupil amount multiplied by the
number of children in the district enrolled in preschool as of August 30, 2005.
(d) In order to prepare for full implementation by 2011, school districts shall receive transition funding from the
preschool portion of the Improving Classroom Education Fund to recruit, pay and train staff, purchase instructional
materials and supplies, and provide facilities for preschool. On or before July 31 of each year, the Controller shall
apportion transition funding to the school districts as follows:
(1) The Controller shall calculate 70% of the districts kindergarten enrollment for the prior school year;
(2) From the amount calculated pursuant to paragraph (1), the Controller shall subtract the number of pupils enrolled
in a preschool program for which the district receives funds pursuant to subdivision (a) of this Section;
(3) The Controller shall multiply the number calculated pursuant to paragraph (2) by 80% of the statewide per pupil
amount calculated pursuant to subdivision (a) of this Section. The resulting amount shall be distributed to the school
district as transition funding.
(e) In order to be eligible to receive transition funding pursuant to this Section, a school district must submit a plan
to the State Superintendent of Public Instruction describing how the district will achieve full compliance with the Improving
Classroom Education Act by July 1, 2011. The superintendent of the district must certify the contents of the plan.
(f) If a district cannot reach full compliance with the Improving Classroom Education Act by July 1, 2011, the district
may request an extension of transition funding under this Section for no more than two additional years. The State Superintendent
shall grant an extension only if the district can demonstrate that its failure to comply is due to lack of facilities to house
a preschool program. The district shall amend its plan to demonstrate how it will reach full compliance by July 1, 2013.
Sec. 14113. (a) The Controller shall segregate the funds remaining in the preschool portion of the Improving
Classroom Education Fund as of December 15, 2010 as a contingency reserve. Funds received into the preschool portion
of the fund after December 15, 2010 shall be distributed to school districts to provide universal voluntary preschool
for the 2011-2012 school year and for every year thereafter.
(b) No distributions shall be made from the contingency reserve until July 1, 2015.
(c) After July 1, 2015, in any year in which the projected per pupil amount to be distributed from the portion
of the Improving Classroom Education Fund dedicated to universal preschool falls below the per pupil amount for the
previous year, the Controller shall distribute sufficient contingency reserve funds on a per pupil basis to equal the previous
years amount. If the revenues in the contingency reserve are not sufficient to equal the previous years amount for all districts,
the Controller shall distribute the funds in the contingency reserve on a pro rata basis.
Sec. 14114. (a) Notwithstanding Section 14100, during the five-year transition period provided by the Improving Classroom
Education Act, school districts may contract for the purposes identified in subdivision (c) of Section 5.5 of Article IX
of the California Constitution with providers who:
(1) Operate a facility located within the school district;
(2) Operate publicly funded, licensed programs serving children who are eligible under the Improving Classroom Education
Act; and
(3) Meet the standards of educational programs specified in Articles 6, 7, 8 and 9 of the Child Care and Development
Act, commencing with Section 8230 of this Code.
(b) Providers who receive transition funding pursuant to this Section may only use the funds for the purposes specified
in subdivision (c) of section 5.5 of Article IX of the California Constitution.
(c) After July 1, 2011, districts may use Improving Classroom Education Funds to contract only with providers
with whom they have contracted during the transition period, provided, however, that no later than July 1, 2011, all
employees who provide instructional services to children in the programs funded by the Act shall become employees of the contracting
school district as specified in Section 5.6 of Article IX of the California Constitution. An employee organization
that has been recognized as the exclusive representative of such employees who become employees of a contracting school district
or county office of education shall continue to be recognized as the exclusive representative of the same employees, except
that certificated employees who provide instructional services shall become part of an appropriate existing bargaining unit
of a contracting school district or county office of education.
Sec. 14115. After July 1, 2011, the Controller shall draw warrants on the portion of the Improving Classroom Education
Fund dedicated to universal preschool and distribute them twice yearly to school districts based on their preschool enrollment,
provided, however, that school districts and providers who meet the requirements of the Improving Classroom Education Act
and who receive state or federal funds for children who are eligible for state preschool or Headstart programs shall be entitled
to the difference between the per-pupil amounts apportioned pursuant to Section 5.6 of Article IX and the state
or federal per-pupil amount received for the children who are eligible for the state preschool program or for Headstart.
Sec. 14116. Notwithstanding any other provisions of law, voluntary universal preschool programs established pursuant
to Section 5.6 of Article IX of the California Constitution shall not be considered state preschool or general child
care and development programs within the meaning of Chapter 2 of Part 6 of this Code, commencing with Section 8200.
ARTICLE 3. FUNDING FOR K-12 EDUCATION
Sec. 14120. After July 1, 2005, the Controller shall distribute the revenues in the portion of the Improving
Classroom Education Fund dedicated to K-12 education at least twice during the fiscal year to school districts based
on their enrollment. The funds shall be spent only for the purposes set forth in Section 5.5 of Article IX of the California
Constitution.
Section 12. Government Code Section 13340 is amended to read:
(a) Except as provided in subdivision (b), on and after July 1, 2004, no moneys in any fund that, by any statute
other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature,
by statute, specifies that the moneys in the fund are appropriated for encumbrance.
(b) Subdivision (a) does not apply to any of the following:
(1) The scheduled disbursement of any local sales and use tax proceeds to any entity of local government pursuant to Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue and Taxation Code.
(2) The scheduled disbursement of any transactions and use tax proceeds to an entity of local government pursuant to Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and Taxation Code.
(3) The scheduled disbursement of any funds by a state or local agency or department that issues bonds and administers
related programs for which funds are continuously appropriated as of June 30, 2004.
(4) Moneys that are deposited in proprietary or fiduciary funds of the California State University and that are continuously
appropriated without regard to fiscal years.
(5) The scheduled disbursement of any motor vehicle license fee revenues, including the General Fund appropriations made
pursuant to Sections 11000 and 11000.1 of the Revenue and Taxation Code, to an entity of local government pursuant to
the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation
Code).
(6) Moneys that are deposited in the Improving Classroom Education Fund.
Section 13. Section 94 is hereby added to the Revenue and Taxation Code, to read as follows:
Sec. 94. For purposes of Section 1 of Article XIII A and Section 8.6 of Article XVI
of the California Constitution, the following definitions shall apply:
(a) "Dwelling unit" includes, among other real properties, a unit or lot within a cooperative housing corporation
or stock cooperative, a community apartment project, a condominium project, a planned unit development, or a mobilehome or
manufactured home and any land owned by the homeowner and on which the mobilehome or manufactured home is located.
(b) "Commercial residential rental property" means that portion of a building that contains one or more dwelling
units that are not owner-occupied.
(c) "Real property used for commercial agricultural production" means land zoned and used for producing commercial
agricultural commodities and any improvements thereon , exclusive of that portion of the full value of non-residential structures
situated on the land that exceeds $500,000.
Section 14. Section 94.1 is hereby added to the Revenue and Taxation Code, to read as
follows:
Sec. 94.1. The rate of additional ad valorem property tax imposed on commercial residential rental property by subdivision (b)
of Section 1 of Article XIIIA of the California Constitution shall be determined as follows:
(a) For commercial residential rental property with an assessed valuation between $700,000 and $799,999, the
rate of tax shall be .10 percent higher than the ad valorem tax on residential real property;
(b) For commercial residential rental property with an assessed valuation between $800,000 and $899,999, the rate
of tax shall be .25 percent higher than the ad valorem tax on residential real property;
(c) For commercial residential rental property with an assessed valuation between $900,000 and $999,999, the rate of tax
shall be .40 percent higher than the ad valorem tax on residential real property; and
(d) For commercial residential rental property with an assessed valuation of $1,000,000 or more, the rate of
tax shall be .55 percent higher than the ad valorem tax on residential real property.
Section 15. Section 100.7 is hereby added to the Revenue and Taxation Code, to read as
follows:
Sec. 100.7. (a) For the 2005-06 fiscal year and each fiscal year thereafter, the Controller shall allocate among
the counties those moneys set aside for aid to businesses pursuant to paragraph (1) of subdivision (b) of Section 8.6
of Article XVI of the California Constitution. The Controller shall allocate those moneys among the counties in shares
that, as determined pursuant to subdivision (b), correspond to each countys percentage share of the total statewide property
tax revenue loss resulting in that fiscal year from the tax exemption established by Section 210. Each county shall apportion
its allocation under this subdivision among the jurisdictions in that county in the same manner as revenues derived from locally
assessed property are required by law to be allocated among those same jurisdictions.
(b) For the 2005-06 fiscal year and each fiscal year thereafter, each countys allocation under subdivision (a) shall
be calculated as follows:
(1) Each county shall report to the Controller the total taxable value of personal property in that county for the property
tax lien date immediately preceding the subject fiscal year.
(2) The Controller shall determine the combined total of all of the amounts reported pursuant to paragraph (1).
(3) The Controller shall divide each amount reported under paragraph (1) by the combined total determined under paragraph (2).
(4) The Controller shall multiply each ratio determined under paragraph (3) by the total amount of moneys set aside
for the subject fiscal year for aid to business under paragraph (1) of subdivision (b) of Section 8.6 of Article
XVI of the California Constitution.
Section 16. Section 210 is hereby added to the Revenue and Taxation Code, to read as
follows:
Sec. 210. (a) For purposes of providing aid to business as described in paragraph (1) of subdivision (b)
of Section 8.6 of Article XVI of the California Constitution, for the January 1, 2005 lien date and each lien
date thereafter, there is exempted from tax that amount of the full value of personal property assessable to each taxpayer
that does not exceed the amount most recently estimated under subdivision (b) by the Small Business Tax Relief Funding
Authority.
(b)(1) The Small Business Tax Relief Funding Authority is hereby established to consist of the Controller, the State
Treasurer, and the Director of Finance, or the designee of any of them.
(2) For the set of three property tax lien dates commencing with January 1, 2005, and for each set of three property
tax lien dates thereafter, the Small Business Tax Relief Funding Authority shall estimate that single amount that,
when applied under subdivision (a) to each of the three subject lien dates, will result in a statewide personal property
tax revenue loss equal to 10 percent of the average annual amount of revenue to be derived over the three lien dates
from the additional ad valorem property tax rate imposed under subdivision (b) of Section 1 of Article XIII A
of the California Constitution.
Section 17. Amendment.
The statutory provisions of this measure may be amended to further the purposes of the initiative by a statute other than
the annual budget act. Any such amendment must be passed in each house by rollcall vote entered in the journal, two-thirds
of the membership concurring, and signed by the Governor.
Section 18. Severability.
The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that
invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Section 19. Conflicting Initiatives.
In the event that this measure and another initiative measure or measures relating to taxation of real or personal
property or funding for education or preschool shall appear on the same statewide election ballot, the provisions
of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives
a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions
of the other measure shall be null and void.
Section 20. Effective Date.
This measure shall go into effect on January 1, 2005.
