Bill Text: CA SCA10 | 2009-2010 | Regular Session | Amended

---

Bill Title: State finance.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Introduced - Dead) 2010-10-07 - Read second time. To third reading. Senate Rule 29.3 suspended. (Page 5222.) Joint Rule 10.5 suspended. (Page 5222.) [SCA10 Detail]

Download: California-2009-SCA10-Amended.html

---

BILL NUMBER: SCA 10	AMENDED
	BILL TEXT

	AMENDED IN SENATE  OCTOBER 6, 2010
	AMENDED IN SENATE  AUGUST 17, 2009

INTRODUCED BY   Senator  Ducheny   Ashburn 

    (   Coauthor:   Senator
  DeSaulnier   ) 
   ( Coauthor:   Assembly Member 
 Huffman   Coauthors:   Assembly
Members   Gatto  and Niello  )

                        JANUARY 26, 2009

   A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section
 8 of, and by adding Section 8.5 to, Article II thereof,
relating to initiatives.   12 of Article IV thereof, and
by amending Section 20 of, and adding Section 21 to, Article XVI
thereof, relating to state finance. 



	LEGISLATIVE COUNSEL'S DIGEST


   SCA 10, as amended,  Ducheny   Ashburn 
.  Statewide initiative measures: legislative amendment.
  State finance.  
   Existing provisions of the California Constitution require the
Governor to submit to the Legislature, within the first 10 days of
each calendar year, a proposed budget for the ensuing fiscal year
containing itemized statements for recommended state expenditures and
estimated state revenues. In addition, the Constitution prohibits
the Legislature from passing, and the Governor from signing, a Budget
Bill that would appropriate from the General Fund a total amount
that, when combined with all appropriations from the General Fund for
that fiscal year made as of the date of the Budget Bill's passage,
and the amount of any General Fund moneys transferred to a reserve
account, exceeds estimated General Fund revenues for that fiscal
year. The estimate of General Fund revenues is required to be set
forth in the Budget Bill.  
   This measure would require the Governor, in his or her proposed
budget, to identify estimated total state resources available to meet
recommended state expenditures and, further, to identify the amount
of those resources that are anticipated to be one-time resources. The
measure would prohibit passage of a Budget Bill that appropriates an
amount that, when combined with prior appropriations and transfers
to the reserve account, exceeds the estimate of General Fund
revenues, transfers, and balances available from the prior fiscal
year. The measure would require the estimate of General Fund
revenues, transfers, and balances to be set forth in the Budget Bill.
 
   Existing provisions of the California Constitution establish the
Budget Stabilization Account in the General Fund and currently
require the Controller, no later than September 30 of each year, to
transfer from the General Fund to the account a sum equal to 3% of
the estimated amount of General Fund revenues for the current fiscal
year. This transfer of moneys is not required, unless otherwise
directed by the Legislature by statute, in any fiscal year to the
extent that the resulting balance in the account would exceed 5% of
the General Fund revenues estimate set forth in the Budget Bill for
that fiscal year, as enacted, or $8,000,000,000, whichever is
greater. This transfer of moneys also may be suspended or reduced for
a fiscal year as specified by an executive order issued by the
Governor no later than June 1 of the preceding fiscal year. Of the
moneys transferred to the account in each fiscal year, 50%, up to an
aggregate amount of $5,000,000,000 for all fiscal years, is deposited
in the Deficit Recovery Bond Retirement Sinking Fund Subaccount and
continuously appropriated to the Treasurer for the purpose of
retiring state deficit recovery bonds. All other moneys transferred
to the account in a fiscal year are not deposited in the sinking fund
subaccount and may, by statute, be transferred back to the General
Fund.  
   This measure would rename this account the Budget Stabilization
Fund. This measure would also provide that the transfer of moneys
from the General Fund to the Budget Stabilization Fund is not
required in any fiscal year to the extent that the resulting balance
in the fund would exceed 10% of the General Fund revenues estimate
set forth in the Budget Bill for that fiscal year, as enacted, and
would delete the alternative $8,000,000,000 limit on the fund. This
measure would provide that, apart from a transfer made for the
purpose of responding to an emergency declared by the Governor, as
defined, or a loan to meet General Fund cash requirements which would
be repaid within a fiscal year, the total amount that may be
transferred from the Budget Stabilization Fund to the General Fund
for any fiscal year shall not exceed the lesser of the shortfall
amount for the current fiscal year, as defined, or 50% of the balance
of the Budget Stabilization Fund, depending upon specified criteria.
 
   In addition, this measure would create in the General Fund the
Supplemental Budget Stabilization Account and would direct the
Controller to transfer, on October 1 of each year beginning in 2013,
from the Budget Stabilization Fund to the Supplemental Budget
Stabilization Account a sum equal to 1.5% of the estimated amount of
General Fund revenues for the current fiscal year, except that this
transfer would not be made in a fiscal year for which the Governor
issues an executive order to suspend or reduce the transfer of moneys
from the General Fund to the Budget Stabilization Fund. The measure
would permit appropriations to be made from the Supplemental Budget
Stabilization Account only for capital outlay purposes or to retire
bonded indebtedness of the state.  
   This measure would require the Director of Finance, on or before
May 29 of each year beginning in 2014, to report to the Legislature
and the Governor (1) an estimate of the amount of General Fund
revenues, transfers, and balances available from the prior fiscal
year for the current fiscal year, (2) the revenue forecast amount, as
defined, for the current fiscal year, and (3) an estimate of
specified General Fund obligations for the public schools. The
measure would provide that if, pursuant to a formula based on those
figures, there are unanticipated revenues in the current fiscal year,
beginning in the 2013-14 fiscal year, those revenues may be used
only for specified purposes, and in a specified order of priority.
 
   Existing provisions of the California Constitution provide that
the initiative is the power of the electors to propose statutes and
amendments to the Constitution and to adopt or reject those
proposals. Those provisions require the Secretary of State to submit
the measure at the next general election held at least 131 days after
it qualifies or at any special statewide election held prior to that
general election. The Governor may also call a special statewide
election on the measure.  
   This measure would require the Secretary of State to transmit a
copy of an initiative measure certified for the ballot to each house
of the Legislature no later than 176 days prior to the election at
which the measure is to be voted upon. Within 30 days, the
Legislature may propose an amended form of the initiative measure by
adopting a concurrent resolution. If the Legislature proposes an
amended form of the initiative measure, the measure would provide
that if the proponent, or a majority of the proponents if there is
more than one proponent, of the initiative measure accepts the
proposed amendments, the Legislature's proposal would appear on the
ballot in place of the certified initiative measure. The measure
would require that, if the amended form proposed by the Legislature
is not accepted, information regarding the proposed amended form be
included in the ballot materials relating to the initiative measure,
as prescribed by statute.  
   The measure would make conforming election changes. 
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.



    RESOLVED BY THE SENATE, THE ASSEMBLY CONCURRING, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended as follows: 
  First--  That Section 12 of Article IV thereof is amended to read:
      SEC. 12.  (a) Within the first 10 days of each calendar year,
the Governor shall submit to the Legislature, with an explanatory
message, a budget for the ensuing fiscal year containing itemized
statements for recommended state expenditures and estimated 
total  state  revenues   resources
available to meet those expenditures  . If recommended
expenditures exceed estimated  revenues 
resources  , the Governor shall recommend the sources from which
the additional  revenues   resources 
should be provided.  The itemized statement of estimated total
state resources available to meet recommended expenditures submitted
pursuant to this subdivision shall identify the amount, if any, of
those resources that are anticipated to be one-time resources. 
   (b) The Governor and the Governor-elect may require a state
agency, officer, or employee to furnish whatever information is
deemed necessary to prepare the budget.
   (c) (1) The budget shall be accompanied by a budget bill itemizing
recommended expenditures.
   (2) The budget bill shall be introduced immediately in each house
by the persons chairing the committees that consider the budget.
   (3) The Legislature shall pass the budget bill by midnight on June
15 of each year.
   (4) Until the budget bill has been enacted, the Legislature shall
not send to the Governor for consideration any bill appropriating
funds for expenditure during the fiscal year for which the budget
bill is to be enacted, except emergency bills recommended by the
Governor or appropriations for the salaries and expenses of the
Legislature.
   (d) No bill except the budget bill may contain more than one item
of appropriation, and that for one certain, expressed purpose.
Appropriations from the General Fund of the State, except
appropriations for the public schools, are void unless passed in each
house by rollcall vote entered in the journal, two-thirds of the
membership concurring.
   (e) The Legislature may control the submission, approval, and
enforcement of budgets and the filing of claims for all state
agencies.
   (f) For the 2004-05 fiscal year, or any subsequent fiscal year,
the Legislature may not send to the Governor for consideration, nor
may the Governor sign into law, a budget bill that would appropriate
from the General Fund, for that fiscal year, a total amount that,
when combined with all appropriations from the General Fund for that
fiscal year made as of the date of the budget bill's passage, and the
amount of any General Fund moneys transferred to the Budget
Stabilization  Account   Fund  for that
fiscal year pursuant to Section 20 of Article XVI, exceeds General
Fund revenues  , transfers, and balances available from the prior
fiscal year  for that fiscal year estimated as of the date of
the budget bill's passage. That estimate of General Fund revenues
 , transfers, and balances  shall be set forth in the budget
bill passed by the Legislature.
  Second--  That Section 12 of Article IV thereof, as amended by
Proposition 25 at the November 2, 2010, statewide general election,
is amended to read:
      SEC. 12.  (a) Within the first 10 days of each calendar year,
the Governor shall submit to the Legislature, with an explanatory
message, a budget for the ensuing fiscal year containing itemized
statements for recommended state expenditures and estimated 
total  state  revenues   resources
available to meet those expenditures  . If recommended
expenditures exceed estimated  revenues  
resources  , the Governor shall recommend the sources from which
the additional  revenues   resources 
should be provided.  The itemized statement of estimated total
state resources available to meet recommended expenditures submitted
pursuant to this subdivision shall identify the amount, if any, of
those resources that are anticipated to be one-time resources. 
   (b) The Governor and the Governor-elect may require a state
agency, officer, or employee to furnish whatever information is
deemed necessary to prepare the budget.
   (c) (1) The budget shall be accompanied by a budget bill itemizing
recommended expenditures.
   (2) The budget bill shall be introduced immediately in each house
by the persons chairing the committees that consider the budget.
   (3) The Legislature shall pass the budget bill by midnight on June
15 of each year.
   (4) Until the budget bill has been enacted, the Legislature shall
not send to the Governor for consideration any bill appropriating
funds for expenditure during the fiscal year for which the budget
bill is to be enacted, except emergency bills recommended by the
Governor or appropriations for the salaries and expenses of the
Legislature.
   (d) No bill except the budget bill may contain more than one item
of appropriation, and that for one certain, expressed purpose.
Appropriations from the General Fund of the State, except
appropriations for the public schools and appropriations in the
budget bill and in other bills providing for appropriations related
to the budget bill, are void unless passed in each house by rollcall
vote entered in the journal, two-thirds of the membership concurring.

   (e) (1) Notwithstanding any other provision of law or of this
Constitution, the budget bill and other bills providing for
appropriations related to the budget bill may be passed in each house
by rollcall vote entered in the journal, a majority of the
membership concurring, to take effect immediately upon being signed
by the Governor or upon a date specified in the legislation. Nothing
in this subdivision shall affect the vote requirement for
appropriations for the public schools contained in subdivision (d) of
this section and in subdivision (b) of Section 8 of this article.
   (2) For purposes of this section, "other bills providing for
appropriations related to the budget bill" shall consist only of
bills identified as related to the budget in the budget bill passed
by the Legislature.
   (f) The Legislature may control the submission, approval, and
enforcement of budgets and the filing of claims for all state
agencies.
   (g) For the 2004-05 fiscal year, or any subsequent fiscal year,
the Legislature may not send to the Governor for consideration, nor
may the Governor sign into law, a budget bill that would appropriate
from the General Fund, for that fiscal year, a total amount that,
when combined with all appropriations from the General Fund for that
fiscal year made as of the date of the budget bill's passage, and the
amount of any General Fund moneys transferred to the Budget
Stabilization  Account   Fund  for that
fiscal year pursuant to Section 20 of Article XVI, exceeds General
Fund revenues  , transfers, and balances available from the prior
fiscal year  for that fiscal year estimated as of the date of
the budget bill's passage. That estimate of General Fund revenues
 , transfers, and balances  shall be set forth in the budget
bill passed by the Legislature.
   (h) Notwithstanding any other provision of law or of this
Constitution, including subdivision (c) of this section, Section 4 of
this article, and Sections 4 and 8 of Article III, in any year in
which the budget bill is not passed by the Legislature by midnight on
June 15, there shall be no appropriation from the current budget or
future budget to pay any salary or reimbursement for travel or living
expenses for Members of the Legislature during any regular or
special session for the period from midnight on June 15 until the day
that the budget bill is presented to the Governor. No salary or
reimbursement for travel or living expenses forfeited pursuant to
this subdivision shall be paid retroactively.
  Third--  That Section 20 of Article XVI thereof is amended to read:

      SEC. 20.  (a) The  Budget Stabilization Fund and the
Supplemental  Budget Stabilization Account  is 
 are  hereby created in the General Fund.
   (b) In each fiscal year as specified in paragraphs (1) to (3),
inclusive, the Controller shall transfer from the General Fund to the
Budget Stabilization  Account   Fund  the
following amounts:
   (1) No later than September 30, 2006, a sum equal to 1 percent of
the estimated amount of General Fund revenues for the 2006-07 fiscal
year.
   (2) No later than September 30, 2007, a sum equal to 2 percent of
the estimated amount of General Fund revenues for the 2007-08 fiscal
year.
   (3) No later than September 30, 2008, and annually thereafter
 ,   through 2012,  a sum equal to 3
percent of the estimated amount of General Fund revenues for the
current fiscal year. 
   (4) On September 23, 2013, and on September 23 annually
thereafter, a sum equal to 3 percent of the estimated amount of
General Fund revenues for the current fiscal year. 
   (c) The transfer of moneys shall not be required by subdivision
(b) in any fiscal year to the extent that the resulting balance in
the  account   Budget Stabilization Fund 
would exceed  5   10  percent of the
General Fund revenues estimate set forth in the budget bill for that
fiscal year, as enacted  , or eight billion dollars
($8,000,000,000), whichever is greater  . The Legislature
may, by statute, direct the Controller, for one or more fiscal years,
to transfer into the  account   Budget
Stabilization Fund  amounts in excess of the levels prescribed
by this subdivision.
   (d) Subject to any restriction imposed by this section, funds
transferred to the  Budget Stabilization Fund or the Supplemental
 Budget Stabilization Account shall be deemed to be General
Fund revenues for all purposes of this Constitution.
   (e) The transfer of moneys from the General Fund to the Budget
Stabilization  Account   Fund  may be
suspended or reduced for a fiscal year as specified by an executive
order issued by the Governor no later than  June 1 of the
preceding fiscal year   the date of the transfer set
forth in subdivision (b)  .  For a fiscal year commencing on
or after July 1, 2013, this subdivision shall be operative only if a
transfer of moneys from the Budget Stabilization Fund to the General
Fund is authorized pursuant to paragraph (1) of subdivision (g).

   (f) (1) Of the moneys transferred to the  account
  Budget Stabilization Fund  in each fiscal year,
50 percent, up to the aggregate amount of five billion dollars
($5,000,000,000) for all fiscal years, shall be deposited in the
Deficit Recovery Bond Retirement Sinking Fund Subaccount, which is
hereby created in the  account   Budget
Stabilization Fund  for the purpose of retiring deficit recovery
bonds authorized and issued as described in Section 1.3, in addition
to any other payments provided for by law for the purpose of
retiring those bonds. The moneys in the sinking fund subaccount are
continuously appropriated to the Treasurer to be expended for that
purpose in the amounts, at the times, and in the manner deemed
appropriate by the Treasurer. Any funds remaining in the sinking fund
subaccount after all of the deficit recovery bonds are retired shall
be transferred to the  account   Budget
Stabilization Fund  , and may be transferred to the General Fund
pursuant to paragraph (2).
   (2) All other funds transferred to the  account 
 Budget Stabilization Fund  in a fiscal year shall not be
deposited in the sinking fund subaccount and may  , by
statute,  be transferred to the General Fund by statute
pursuant to subdivision (g) or (h)  . 
   (g) (1) Subject to paragraph (2), the total amount that may be
transferred from the Budget Stabilization Fund to the General Fund
pursuant to this subdivision for any fiscal year shall not exceed the
lesser of the following:  
   (A) The shortfall amount for the current fiscal year.  
   (B) Fifty percent of the balance of the Budget Stabilization Fund.
 
   (2) If a transfer was made pursuant to this subdivision in both
the prior fiscal year and the fiscal year immediately preceding that
year, the total amount that may be transferred from the Budget
Stabilization Fund to the General Fund pursuant to this subdivision
for the current fiscal year shall not exceed the shortfall amount for
the current fiscal year.  
   (3) For purposes of this subdivision, the "shortfall amount for
the current fiscal year" is the amount derived by subtracting the
General Fund revenues, transfers, and balances available from the
prior fiscal year for that fiscal year from the expenditure forecast
amount for the current fiscal year.  
   (4) For purposes of this subdivision, "General Fund revenues,
transfers, and balances available from the prior fiscal year for that
fiscal year" does not include revenues transferred from the General
Fund to the Budget Stabilization Fund pursuant to subdivision (b) for
that fiscal year.  
   (5) For purposes of this subdivision, Section 21, and Section 12
of Article IV, "balances available from the prior fiscal year for
that fiscal year" means the funds in the Special Fund for Economic
Uncertainties, or a successor fund, as of June 30 of the prior fiscal
year. "The prior fiscal year" means the immediately preceding fiscal
year.  
   (6) For purposes of this subdivision and Section 21, the
"expenditure forecast amount" for the current fiscal year is the
total General Fund expenditures for the prior fiscal year adjusted
for the change in population of the State, as defined in Section 8 of
Article XIII B, and the change in the cost of living for the State,
as measured by the California Consumer Price Index, between the prior
fiscal year and the current fiscal year.  
   (7) For purposes of this subdivision, "total General Fund
expenditures for the prior fiscal year" does not include the
expenditure of funds transferred pursuant to subdivision (h), or the
expenditure of unanticipated revenues pursuant to paragraph (3) or
(4) of subdivision (c) of Section 21.  
   (h) Any funds necessary for the purpose of responding to an
emergency declared by the Governor may be transferred from the Budget
Stabilization Fund to the General Fund by statute. For purposes of
this subdivision, "emergency" has the same meaning as set forth in
paragraph (2) of subdivision (c) of Section 3 of Article XIII B.
 
   (i) In addition to any transfer authorized by this section, funds
in the Budget Stabilization Fund or the Supplemental Budget
Stabilization Account may be loaned to meet General Fund cash
requirements on the condition that the funds are repaid within the
same fiscal year in which the loan is made.  
   (j) (1) Except as provided in paragraph (3), on October 1, 2013,
and on October 1 annually thereafter, the Controller shall transfer
from the Budget Stabilization Fund to the Supplemental Budget
Stabilization Account a sum equal to 1.5 percent of the estimated
amount of General Fund revenues for the current fiscal year. 

   (2) Funds in the Supplemental Budget Stabilization Account may be
appropriated only for the purposes set forth in subparagraphs (B) and
(C) of paragraph (4) of subdivision (c) of Section 21.  
   (3) Paragraph (1) shall not be operative in a fiscal year for
which the Governor issues an executive order pursuant to subdivision
(e) to suspend or reduce the transfer of moneys from the General Fund
to the Budget Stabilization Fund. 
  Fourth--  That Section 21 is added to Article XVI thereof, to read:

      SEC. 21.  (a) On or before May 29, 2014, and on or before May
29 of each year thereafter, the Director of Finance shall do all of
the following, reporting the result in each case to the Legislature
and the Governor:
   (1) Separately estimate General Fund revenues, transfers, and
balances available from the prior fiscal year for the current fiscal
year.
   (2) Determine the revenue forecast amount for the current fiscal
year in the manner set forth in subdivision (d).
   (3) Estimate the amount, as of that date, of any General Fund
obligations arising under Section 8 for the current fiscal year,
including any maintenance factor allocation for the current fiscal
year required pursuant to subdivision (e) of Section 8, that are
attributable to unanticipated revenues in the current fiscal year.
   (b) (1) Except as provided in paragraph (2), "unanticipated
revenues" for a fiscal year, for purposes of this section, shall be
the lesser of the following:
   (A) Estimated General Fund revenues for the current fiscal year
reported pursuant to paragraph (1) of subdivision (a) minus the
revenue forecast amount for the current fiscal year.
   (B) Estimated General Fund revenues, transfers, and balances
available from the prior fiscal year for the current fiscal year
reported pursuant to paragraph (1) of subdivision (a) minus the
expenditure forecast amount for the current fiscal year determined
pursuant to paragraph (6) of subdivision (g) of Section 20.
   (2) If the amount determined pursuant to paragraph (1) is less
than zero, the amount of unanticipated revenues shall be zero.
   (c) Unanticipated revenues, as determined pursuant to this
section, may be used only as follows:
   (1) Unanticipated revenues shall be appropriated to satisfy any
General Fund obligations arising under Section 8 for the current
fiscal year, as estimated pursuant to paragraph (3) of subdivision
(a).
   (2) Any unanticipated revenues that remain after deducting, in
accordance with paragraph (1), the amount of the estimate required by
paragraph (3) of subdivision (a) shall be transferred by the
Controller no later than June 27 of the current fiscal year to the
Budget Stabilization Fund, not exceeding the amount needed to
increase the balance in the fund to an amount equal to 10 percent of
the General Fund revenues estimate set forth in the budget bill for
that fiscal year, as enacted. Notwithstanding any other provision of
this Constitution:
   (A) If the Director of Finance determines at any time that the
total amount of General Fund obligations arising under Section 8 for
a fiscal year, including any maintenance factor allocation for that
fiscal year required pursuant to subdivision (e) of Section 8,
exceeds the total amount of those General Fund obligations as
calculated for that fiscal year for purposes of the estimate required
by paragraph (3) of subdivision (a), he or she shall so report to
the Legislature, the Governor, and the Controller. The Controller
shall thereupon transfer funds in the amount of that difference from
the Budget Stabilization Fund to the General Fund, and the funds so
transferred shall be appropriated only for purposes of funding the
additional amount of General Fund obligations under Section 8
determined pursuant to this paragraph.
   (B) If the Director of Finance determines at any time that the
total amount of General Fund obligations arising under Section 8 for
a fiscal year, including any maintenance factor allocation for that
fiscal year required pursuant to subdivision (e) of Section 8, is
less than the total amount of those General Fund obligations as
calculated for that fiscal year for purposes of the estimate required
by paragraph (3) of subdivision (a), he or she shall so report to
the Legislature, the Governor, and the Controller. The Controller
shall thereupon transfer funds in the amount of that difference from
the General Fund to the Budget Stabilization Fund, not exceeding the
amount needed to increase the balance in the latter fund to an amount
equal to 10 percent of the estimate of General Fund revenues as set
forth in the enacted budget bill for that fiscal year.
   (3) Any unanticipated revenues remaining after any appropriations
and transfers described in paragraphs (1) and (2) shall be
appropriated to retire outstanding budgetary obligations. For
purposes of this paragraph, "budgetary obligations" means any of the
following:
   (A) Unfunded General Fund obligations pursuant to Section 8 for
one or more prior fiscal years.
   (B) Any repayment obligations created by the suspension of
subparagraph (A) of paragraph (1) of subdivision (a) of Section 25.5
of Article XIII.
   (C) Any repayment obligations created by the suspension of
subdivision (a) of Section 1 of Article XIX B.
   (D) Bonded indebtedness authorized pursuant to Section 1.3.
   (4) Any unanticipated revenues remaining after any appropriations
and transfers described in paragraphs (1), (2), and (3) are made to
retire all outstanding budgetary obligations shall be used for one or
more of the following purposes:
   (A) Transfer by statute to the Budget Stabilization Fund.
   (B) Appropriation for one-time infrastructure or other capital
outlay purposes.
   (C) Appropriation to retire, redeem, or defease outstanding
general obligation or other bonded indebtedness of the State.
   (D) Return to taxpayers within the current or immediately
following fiscal year by a one-time revision of tax rates, or by
rebates.
   (E) Appropriation for unfunded liabilities for vested nonpension
benefits for state annuitants.
   (d) For the 2013-14 fiscal year, and for each fiscal year
thereafter, the revenue forecast amount shall be determined as
follows:
   (1) The General Fund revenues for the current fiscal year shall be
forecast by extrapolating from the trend line derived by a linear
regression of General Fund revenues as a function of fiscal year for
the period of the 20 preceding fiscal years. For purposes of this
paragraph, General Fund revenues shall exclude both of the following:

   (A) The General Fund revenue effect of a change in state taxes
that affects General Fund revenues for less than the entire period of
the 20 preceding fiscal years.
   (B) Any proceeds of bonds authorized by subdivision (a) of Section
1.3.
   (2) The amount forecast pursuant to paragraph (1) shall be
increased or decreased, as applicable, to reflect the net current
fiscal year General Fund revenue effect of a change in state taxes
for which General Fund revenue effects were excluded pursuant to
subparagraph (A) of paragraph (1).
  Fifth--  That if Proposition 25 is not approved by the voters at
the November 2, 2010, statewide general election, the amendments to
Section 12 of Article IV of the California Constitution proposed by
the first section of this measure, and not the amendments to Section
12 of Article IV proposed by the second section of this measure,
shall be submitted to the electors by the Secretary of State. If
Proposition 25 is approved by the voters at the November 2, 2010,
statewide general election, the amendments to Section 12 of Article
IV of the California Constitution proposed by the second section of
this measure, and not the amendments to Section 12 of Article IV
proposed by the first section of this measure, shall be submitted to
the electors by the Secretary of State. 
   Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended as follows:
  First--  That Section 8 of Article II thereof is amended to read:
      SEC. 8.  (a) The initiative is the power of the electors to
propose statutes and amendments to the Constitution and to adopt or
reject them.
   (b) An initiative measure may be proposed by presenting to the
Secretary of State a petition that sets forth the text of the
proposed statute or amendment to the Constitution and is certified to
have been signed by electors equal in number to 5 percent in the
case of a statute, and 8 percent in the case of an amendment to the
Constitution, of the votes for all candidates for Governor at the
last gubernatorial election.
   (c) The Secretary of State shall then submit the measure at the
next general election held at least 176 days after it qualifies or at
any special statewide election held prior to that general election.
The Governor may call a special statewide election for the measure.
   (d) An initiative measure embracing more than one subject may not
be submitted to the electors or have any effect.
   (e) An initiative measure may not include or exclude any political
subdivision of the State from the application or effect of its
provisions based upon approval or disapproval of the initiative
measure, or based upon the casting of a specified percentage of votes
in favor of the measure, by the electors of that political
subdivision.
   (f) An initiative measure may not contain alternative or
cumulative provisions wherein one or more of those provisions would
become law depending upon the casting of a specified percentage of
votes for or against the measure.
  Second--  That Section 8.5 is added to Article II thereof, to read:

      SEC. 8.5.  (a) (1) The Secretary of State shall transmit a copy
of each initiative measure certified for the ballot to each house of
the Legislature not later than 176 days prior to the date of the
election at which the measure is to be voted upon.
   (2) Not later than 30 days after both houses of the Legislature
receive a copy of a certified initiative measure pursuant to
paragraph (1), the Legislature may propose one amended form of the
measure by a concurrent
  resolution adopted by each house, a majority of the membership
concurring.
   (3) An amended form of a certified initiative measure proposed by
the Legislature shall address only the subject matter addressed by
the certified initiative measure.
   (b) Immediately upon adoption of the concurrent resolution
proposing an amended form of the certified initiative measure, the
Legislature shall deliver it to both the proponent of the measure and
the Secretary of State. If the proponent, or a majority of the
proponents if there is more than one proponent, accepts the amended
form proposed in the concurrent resolution not later than 131 days
prior to the date of the election at which the certified initiative
measure is to be voted upon, the amended form shall be placed on the
ballot in place of the proposal set forth in the certified initiative
measure. If the proposed amended form is not accepted by that date,
that substitution shall not occur, but information regarding the
proposed amended form shall be included in the ballot materials
relating to the initiative measure, as may be prescribed by statute.
   (c) For purposes of this section, "proponent" means a person or
entity that presented the Secretary of State with a petition for an
initiative measure that has been certified pursuant to subdivision
(b) of Section 8.