Bill Text: CA ACA28 | 2011-2012 | Regular Session | Introduced


Bill Title: Legislature: revised biennial sessions and part-time

Spectrum: Moderate Partisan Bill (Republican 8-1)

Status: (Introduced - Dead) 2012-08-13 - Joint Rule 62(a), file notice suspended. (Page 5866.) [ACA28 Detail]

Download: California-2011-ACA28-Introduced.html
BILL NUMBER: ACA 28	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Garrick
   (Coauthors: Assembly Members Donnelly, Beth Gaines, Grove,
Halderman, Jones, Mansoor, Miller, and Silva)

                        MAY 10, 2012

   A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section 9
of Article II, by amending Section 8 of Article III thereof, by
amending Sections 3, 4, 7.5, 8, 10, 11, and 12 of Article IV thereof,
by amending Sections 1, 2, 3, 6, 8, and 10.5 of, and adding Section
14 to, Article XIII B thereof, by amending Sections 8, 8.5, and 20 of
Article XVI thereof, by amending Section 2 of Article XIX B thereof,
and by amending Section 4 of Article XXXV thereof, relating to the
Legislature.



	LEGISLATIVE COUNSEL'S DIGEST


   ACA 28, as introduced, Garrick. Legislature: revised biennial
sessions and part-time status.
   (1) The California Constitution establishes a full-time
Legislature. The Constitution authorizes the California Citizens
Compensation Commission to determine the annual salary and the
medical, dental, insurance, and other similar benefits of state
officers, including Members of the Legislature.
   This measure would instead provide for a part-time Legislature and
set the annual salary for Members of the Legislature at $24,000, to
be adjusted thereafter by the commission consistent with the Consumer
Price Index.
   (2) The California Constitution requires the Legislature to
convene on the first Monday of December of each even-numbered year
and adjourn on November 30 of the following even-numbered year.
   This measure would set specific time periods in which the
Legislature must complete its work. The bill would require the
Legislature to organize and swear in its Members on the first Monday
of December of each even-numbered year and reconvene not later than
January 7 for a duration of not more than 120 consecutive calendar
days in odd-numbered years, and not more than 60 consecutive calendar
days in even-numbered years. The measure would require that any
legislation introduced in an odd-numbered year be passed within the
120-day period and any legislation introduced in an even-numbered
year be passed within the 60-day period. The measure would allow the
Legislature to convene for an additional 7 consecutive calendar days
for the sole purpose of considering bills vetoed by the Governor, and
items of appropriation reduced or eliminated by the Governor. The
measure would make other conforming changes.
   (3) The California Constitution authorizes the Governor, by
proclamation, to cause the Legislature to assemble in special session
and prohibits the Legislature from legislating on subjects not
specified in the proclamation when so assembled.
   This measure would limit a special session to 30 days in duration
and make other related changes.
   (4) The California Constitution authorizes the Governor, following
the enactment of the Budget Bill, to issue a proclamation declaring
a fiscal emergency if the Governor determines that General Fund
revenues will decline substantially below, or that General Fund
expenditures will increase substantially above, the estimate of
General Fund revenues upon which the Budget Bill, as enacted, was
based. The California Constitution provides that if the Legislature
fails to pass and send to the Governor a bill or bills to address the
fiscal emergency by the 45th day following the issuance of the
proclamation, the Legislature may not act on any other bill until
that bill or those bills addressing the fiscal emergency have been
passed and sent to the Governor.
   This measure would specify that the prohibited actions include
acting upon or taking any action on any other bill, including casting
a vote on any other bill in either a policy or fiscal committee, or
on the floor of the Assembly or Senate.
   (5) The California Constitution requires the Governor to submit to
the Legislature a budget for the ensuing fiscal year within the
first 10 days of each calendar year and requires the Legislature to
pass the Budget Bill by midnight on June 15 of each year.
   This measure would instead require the Governor to submit a
biennial budget within the first 7 days of each odd-numbered year and
require the Legislature to pass the Budget Bill within 120 days, as
specified, and would make conforming changes to other provisions of
the California Constitution relating to the biennial budget.
   This measure would authorize the Governor to propose changes to an
enacted biennial state budget when the Legislature is not in
session, which changes would become law upon approval by resolution
adopted by the Joint Legislative Budget Committee.
   (6) The California Constitution requires that travel and living
expenses for Members of the Legislature in connection with their
official duties be prescribed by statute passed by rollcall vote, 2/3
of the membership of each house concurring.
   This measure would limit these expenses in amount to the per diem
rates established by the United States General Services
Administration for federal employees.
   (7) The California Constitution provides that the aggregate
expenditures for the compensation of Members and employees of, and
the operating expenses and equipment for, the Legislature may not
exceed a specified amount.
   This measure would additionally require that the annual budget
amounts for a Member of either house be equal to that of other
Members of the same house.
   (8) The California Constitution provides that no bill may be
passed until the bill with amendments has been printed and
distributed to the Members.
   This measure would instead require that each bill with amendments
be distributed to the Members at least 72 hours prior to passage.
   (9) The California Constitution provides that the Legislature or
either house may by resolution provide for the selection of
committees necessary for the conduct of its business.
   This measure would require that every political party represented
in a house of the Legislature be, to the greatest extent possible,
proportionately represented in each legislative committee of that
house. The measure would additionally specify membership requirements
for the Joint Legislative Budget Committee.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.



   Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2011-12 Regular Session
commencing on the sixth day of December 2010, 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 9 of Article II thereof is amended to read:
      SEC. 9.  (a) The referendum is the power of the electors to
approve or reject statutes or parts of statutes except urgency
statutes, statutes calling elections, and statutes providing for tax
levies or appropriations for usual current expenses of the State.
   (b) A referendum measure may be proposed by presenting to the
Secretary of State, within 90 days after the enactment date of the
statute, a petition certified to have been signed by electors equal
in number to 5 percent of the votes for all candidates for Governor
at the last gubernatorial election, asking that the statute or part
of it be submitted to the electors.  In the case of a statute
enacted by a bill passed by the Legislature on or before the date
the Legislature adjourns for a joint recess to reconvene in the
second calendar year of the biennium of the legislative session, and
in the possession of the Governor after that date, the petition may
not be presented on or after January 1 next following the enactment
date unless a copy of the petition is submitted to the Attorney
General pursuant to subdivision (d) of Section 10 of Article II
before January 1. 
   (c) The Secretary of State shall then submit the measure at the
next general election held at least 31 days after it qualifies or at
a special statewide election held prior to that general election. The
Governor may call a special statewide election for the measure.
  Second--  That Section 8 of Article III thereof is amended to read:

      SEC. 8.  (a) The California Citizens Compensation Commission is
hereby created and shall consist of seven members appointed by the
Governor. The commission shall establish the annual salary and the
medical, dental, insurance, and other similar benefits of state
officers.
   (b) The commission shall consist of the following persons:
   (1) Three public members, one of whom has expertise in the area of
compensation, such as an economist, market researcher, or personnel
manager; one of whom is a member of a nonprofit public interest
organization; and one of whom is representative of the general
population and may include, among others, a retiree, homemaker, or
person of median income. No person appointed pursuant to this
paragraph may, during the 12 months prior to his or her appointment,
have held public office, either elective or appointive, have been a
candidate for elective public office, or have been a lobbyist, as
defined by the Political Reform Act of 1974.
   (2) Two members who have experience in the business community, one
of whom is an executive of a corporation incorporated in this State
which ranks among the largest private sector employers in the State
based on the number of employees employed by the corporation in this
State and one of whom is an owner of a small business in this State.
   (3) Two members, each of whom is an officer or member of a labor
organization.
   (c) The Governor shall strive insofar as practicable to provide a
balanced representation of the geographic, gender, racial, and ethnic
diversity of the State in appointing commission members.
   (d) The Governor shall appoint commission members and designate a
chairperson for the commission not later than 30 days after the
effective date of this section. The terms of two of the initial
appointees shall expire on December 31, 1992, two on December 31,
1994, and three on December 31, 1996, as determined by the Governor.
Thereafter, the term of each member shall be six years. Within 15
days of any vacancy, the Governor shall appoint a person to serve the
unexpired portion of the term.
   (e) No current or former officer or employee of this State is
eligible for appointment to the commission.
   (f) Public notice shall be given of all meetings of the
commission, and the meetings shall be open to the public.
   (g) On or before December 3, 1990, the commission shall, by a
single resolution adopted by a majority of the membership of the
commission, establish the annual salary and the medical, dental,
insurance, and other similar benefits of state officers. The annual
salary and benefits specified in that resolution shall be effective
on and after December 3, 1990.
   Thereafter, at or before the end of each fiscal year, the
commission shall, by a resolution adopted by a majority of the
membership of the commission, adjust the medical, dental, insurance,
and other similar benefits of state officers. The benefits specified
in the resolution shall be effective on and after the first Monday of
the next December.
   Thereafter, at or before the end of each fiscal year, the
commission shall adjust the annual salary of state officers by a
resolution adopted by a majority of the membership of the commission.
 The annual salary of Members of the Legislature shall be
determined pursuant to subdivision (m).  The annual salary
specified in the resolution shall be effective on and after the first
Monday of the next December, except that a resolution shall not be
adopted or take effect in any year that increases the annual salary
of any state officer if, on or before the immediately preceding June
1, the Director of Finance certifies to the commission, based on
estimates for the current fiscal year, that there will be a negative
balance on June 30 of the current fiscal year in the Special Fund for
Economic Uncertainties in an amount equal to, or greater than, 1
percent of estimated General Fund revenues.
   (h) In establishing or adjusting the annual salary  of state
officers other than Members of the Legislature  and the medical,
dental, insurance, and other similar benefits  of all state
officers  , the commission shall consider all of the following:
   (1) The amount of time directly or indirectly related to the
performance of the duties, functions, and services of a state
officer.
   (2) The amount of the annual salary and the medical, dental,
insurance, and other similar benefits for other elected and appointed
officers and officials in this State with comparable
responsibilities, the judiciary, and, to the extent practicable, the
private sector, recognizing, however, that state officers do not
receive, and do not expect to receive, compensation at the same
levels as individuals in the private sector with comparable
experience and responsibilities.
   (3) The responsibility and scope of authority of the entity in
which the state officer serves.
   (4) Whether the Director of Finance estimates that there will be a
negative balance in the Special Fund for Economic Uncertainties in
an amount equal to or greater than 1 percent of estimated General
Fund revenues in the current fiscal year.
   (i) Until a resolution establishing or adjusting the annual salary
and the medical, dental, insurance, and other similar benefits for
state officers takes effect, each state officer shall continue to
receive the same annual salary and the medical, dental, insurance,
and other similar benefits received previously.
   (j) All commission members shall receive their actual and
necessary expenses, including travel expenses, incurred in the
performance of their duties. Each member shall be compensated at the
same rate as members, other than the chairperson, of the Fair
Political Practices Commission, or its successor, for each day
engaged in official duties, not to exceed 45 days per year.
   (k) It is the intent of the Legislature that the creation of the
commission should not generate new state costs for staff and
services. The Department of Personnel Administration, the Board of
Administration of the Public Employees' Retirement System, or other
appropriate agencies, or their successors, shall furnish, from
existing resources, staff and services to the commission as needed
for the performance of its duties.
   (l) "State officer," as used in this section, means the Governor,
Lieutenant Governor, Attorney General, Controller, Insurance
Commissioner, Secretary of State, Superintendent of Public
Instruction, Treasurer, member of the State Board of Equalization,
and Member of the Legislature. 
   (m) The annual salary of each Member of the Legislature shall be
twenty-four thousand dollars ($24,000) commencing the first Monday of
December 2012, and shall thereafter be adjusted annually by the
commission to reflect changes in the Consumer Price Index calculated
by the Federal Bureau of Labor Statistics or its successor. 
  Third--  That Section 3 of Article IV thereof is amended to read:
      SEC. 3.  (a) The Legislature shall convene in regular session
at noon on the first Monday in December of each even-numbered year
 for the sole purpose of organizing and swearing in Members 
and each house shall immediately organize  and swear in its
Members  . Each session of the Legislature shall adjourn sine
die by operation of the Constitution at midnight on November 30 of
the following even-numbered year. 
   (b) (1) After the Legislature has organized, each house shall
reconvene no later than January 7 of the following odd-numbered year
for a duration of not more than 120 consecutive calendar days. 

   (2) The Legislature shall reconvene in the following even-numbered
year, no later than January 7, for a duration of not more than 60
consecutive calendar days.  
   (3) Notwithstanding paragraphs (1) and (2), the Legislature may
convene each year for an additional seven consecutive calendar days
for the sole purpose of reconsidering, and acting upon, bills vetoed
by the Governor or items of appropriation reduced or eliminated by
the Governor.  
   (b) 
    (c)     (1)  On extraordinary
occasions the Governor by proclamation may cause the Legislature to
assemble in special session. When so assembled it has power to
legislate only on subjects specified in the proclamation but may
provide for expenses and other matters incidental to the session.

   (2) No special session assembled pursuant to this subdivision may
exceed 30 days in duration, after which time the special session is
dissolved and no subsequent action of the Legislature respecting that
special session shall have any force or effect.  
   (3) The Legislature may convene for no more than three additional
consecutive days for the sole purpose of voting to override a veto of
a measure passed in a special session, but may take no other action
or pass any other measure when reconvened.  
   (4) Neither the Chief Clerk of the Assembly nor the Secretary of
the Senate shall accept for introduction any measure in a special
session that does not address a subject specified in the
proclamation. 
  Fourth--  That Section 4 of Article IV thereof is amended to read:
      SEC. 4.  (a) To eliminate any appearance of a conflict with the
proper discharge of his or her duties and responsibilities, no
Member of the Legislature may knowingly receive any salary, wages,
commissions, or other similar earned income from a lobbyist or
lobbying firm, as defined by the Political Reform Act of 1974, or
from a person who, during the previous 12 months, has been under a
contract with the Legislature. The Legislature shall enact laws that
define earned income. However, earned income does not include any
community property interest in the income of a spouse. Any Member who
knowingly receives any salary, wages, commissions, or other similar
earned income from a lobbyist employer, as defined by the Political
Reform Act of 1974, may not, for a period of one year following its
receipt, vote upon or make, participate in making, or in any way
attempt to use his or her official position to influence an action or
decision before the Legislature, other than an action or decision
involving a bill described in subdivision (c) of Section 12 
of this article  , which he or she knows, or has reason to
know, would have a direct and significant financial impact on the
lobbyist employer and would not impact the public generally or a
significant segment of the public in a similar manner. As used in
this subdivision, "public generally" includes an industry, trade, or
profession.
   (b) Travel and living expenses for Members of the Legislature in
connection with their official duties shall be prescribed by statute
passed by rollcall vote entered in the journal, two-thirds of the
membership of each house concurring  ,   except that the
amount shall not exceed the per diem rates established for federal
employees by the United States General Services Administration 
. A Member may not receive travel and living expenses during the
times that the Legislature is in recess for more than three calendar
days, unless the Member is traveling to or from, or is in attendance
at, any meeting of a committee of which he or she is a member, or a
meeting, conference, or other legislative function or responsibility
as authorized by the rules of the house of which he or she is a
member, which is held at a location at least 20 miles from his or her
place of residence.
   (c) The Legislature may not provide retirement benefits based on
any portion of a monthly salary in excess of five hundred dollars
($500) paid to any Member of the Legislature unless the Member
receives the greater amount while serving as a Member in the
Legislature. The Legislature may, prior to their retirement, limit
the retirement benefits payable to Members of the Legislature who
serve during or after the term commencing in 1967.
   When computing the retirement allowance of a Member who serves in
the Legislature during the term commencing in 1967 or later,
allowance may be made for increases in cost of living if so provided
by statute, but only with respect to increases in the cost of living
occurring after retirement of the Member. However, the Legislature
may provide that no Member shall be deprived of a cost of living
adjustment based on a monthly salary of five hundred dollars ($500)
which has accrued prior to the commencement of the 1967 Regular
Session of the Legislature.
  Fifth--  That Section 7.5 of Article IV thereof is amended to read:

      SEC. 7.5.   (  a)    In the 
1991-92  fiscal year  immediately following the adoption
of this Act  , the total aggregate expenditures of the
Legislature for the compensation of  members  
Members  and employees of, and the operating expenses and
equipment for, the Legislature may not exceed an amount equal to nine
hundred fifty thousand dollars ($950,000) per  member
  Member  for that fiscal year or 80 percent of the
amount of money expended for those purposes in the preceding fiscal
year, whichever is less. For each fiscal year thereafter, the total
aggregate expenditures may not exceed an amount equal to that
expended for those purposes in the preceding fiscal year, adjusted
and compounded by an amount equal to the percentage increase in the
appropriations limit for the State established pursuant to Article
XIII B. 
   (b) Each Assembly Member shall be accorded an annual budget amount
equal to the annual budget amount of all other Members of the
Assembly. Each Senator shall be accorded an annual budget amount
equal to the annual budget amount of all other Senators. 
  Sixth--  That Section 8 of Article IV thereof is amended to read:
      SEC. 8.  (a) At regular sessions no bill  ,  other
than the budget bill  ,  may be heard or acted on by
committee or either house until the 31st day after the bill is
introduced unless the house dispenses with this requirement by
rollcall vote entered in the journal,  three fourths
  three   -fourths  of the membership
concurring.
   (b) The Legislature may make no law except by statute and may
enact no statute except by bill. No bill may be passed unless it is
read by title on  3   three  days in each
house except that the house may dispense with this requirement by
rollcall vote entered in the journal,  two thirds 
 two  -thirds  of the membership concurring. No
bill may be passed until the bill with amendments has been 
printed and  distributed to the  members 
 Members at least 72 ho   urs prior to passage  .
No bill may be passed unless, by rollcall vote entered in the
journal, a majority of the membership of each house concurs.
   (c) (1) Except as provided in  paragraphs  
paragraph  (2)  and (3) of this subdivision  ,
a statute enacted at a regular session shall go into effect on
January 1 next following a 90-day period from the date of enactment
of the statute and a statute enacted at a special session shall go
into effect on the 91st day after adjournment of the special session
at which the bill was passed. 
   (2) A statute, other than a statute establishing or changing
boundaries of any legislative, congressional, or other election
district, enacted by a bill passed by the Legislature on or before
the date the Legislature adjourns for a joint recess to reconvene in
the second calendar year of the biennium of the legislative session,
and in the possession of the Governor after that date, shall go into
effect on January 1 next following the enactment date of the statute
unless, before January 1, a copy of a referendum petition affecting
the statute is submitted to the Attorney General pursuant to
subdivision (d) of Section 10 of Article II, in which event the
statute shall go into effect on the 91st day after the enactment date
unless the petition has been presented to the Secretary of State
pursuant to subdivision (b) of Section 9 of Article II. 

   (3) 
    (2)  Statutes calling elections, statutes providing for
tax levies or appropriations for the usual current expenses of the
State, and urgency statutes shall go into effect immediately upon
their enactment.
   (d) Urgency statutes are those necessary for immediate
preservation of the public peace, health, or safety. A statement of
facts constituting the necessity shall be set forth in one section of
the bill. In each house the section and the bill shall be passed
separately, each by rollcall vote entered in the journal, 
two thirds   two-thirds  of the membership
concurring. An urgency statute may not create or abolish any office
or change the salary, term, or duties of any office, or grant any
franchise or special privilege, or create any vested right or
interest.
  Seventh--  That Section 10 of Article IV thereof is amended to
read:
      SEC. 10.  (a) Each bill passed by the Legislature shall be
presented to the Governor. It becomes a statute if it is signed by
the Governor. The Governor may veto it by returning it with any
objections to the house of origin, which shall enter the objections
in the journal and proceed to reconsider it. If each house then
passes the bill by rollcall vote entered in the journal, two-thirds
of the membership concurring, it becomes a statute. 
   (b) (1) Any bill, other than a bill which would establish or
change boundaries of any legislative, congressional, or other
election district, passed by the Legislature on or before the date
the Legislature adjourns for a joint recess to reconvene in the
second calendar year of the biennium of the legislative session, and
in the possession of the Governor after that date, that is not
returned within 30 days after that date becomes a statute. 

   (2) 
    (b)     (1)  Any bill passed by the
Legislature  in the first calendar year of the biennium on or
 before  September 1 of the second calendar year of the
biennium of the legislative session   the 120th day
  of the period specified in paragraph (1) of subdivision
(b) of Section 3  and in the possession of the Governor on or
after  September 1   that day, or passed in the
second calendar year of the biennium on or before the 60th day of the
period specified in paragraph (2) of subdivision (b) of Section 3
and in the possession of the Governor on or after that day, 
that is not returned  on or before September 30 of that year
  within 30 calendar days  becomes a statute.

   (3) 
    (2)  Any other bill presented to the Governor that is
not returned within 12 days becomes a statute. 
   (4) 
    (3)  If the Legislature by adjournment of a special
session prevents the return of a bill with the veto message, the bill
becomes a statute unless the Governor vetoes the bill within 12 days
after it is presented by depositing it and the veto message in the
office of the Secretary of State. 
   (5) 
    (4)  If the 12th day of the period within which the
Governor is required to perform an act pursuant to paragraph  (2)
or  (3)  or (4) of this subdivision  is a
Saturday, Sunday, or holiday, the period is extended to the next day
that is not a Saturday, Sunday, or holiday. 
   (c) Any bill introduced during the first year of the biennium of
the legislative session that has not been passed by the house of
origin by January 31 of the second calendar year of the biennium may
no longer be acted on by the house. No bill may be passed by either
house on or after September 1 of an even-numbered year except
statutes calling elections, statutes providing for tax levies or
appropriations for the usual current expenses of the State, and
urgency statutes, and bills passed after being vetoed by the
Governor.  
   (d) 
    (c)  The Legislature  may   shall
 not present  to the Governor  any bill  to the
Governor   passed in regular session in the first
calendar year of the biennium  after  November 15 of the
second calendar year of the biennium of the legislative session
  the 120th day of the period specified in paragraph (1)
of subdivision (b) of Section 3, or any bill passed in regular
session in the second calendar year of the biennium after the 60th
day of the period specified in paragraph (2) of subdivision (b) of
Section 3  . 
   (e) 
    (d)  The Governor may reduce or eliminate one or more
items of appropriation while approving other portions of a bill. The
Governor shall append to the bill a statement of the items reduced or
eliminated with the reasons for the action. The Governor shall
transmit to the house originating the bill a copy of the statement
and reasons. Items reduced or eliminated shall be separately
reconsidered and may be passed over the Governor's veto in the same
manner as bills. 
   (f) 
    (e)  (1) If, following the enactment of the budget bill
for the 2004-05 fiscal year  ,  or any subsequent fiscal
year  or two-year fiscal period  , the Governor determines
that, for that fiscal year  or fiscal period, as applicable 
, General Fund revenues will decline substantially below the
estimate of General Fund revenues upon which the budget bill for that
fiscal year  or fiscal period, as applicable  , as enacted,
was based, or General Fund expenditures will increase substantially
above that estimate of General Fund revenues, or both, the Governor
may issue a proclamation declaring a fiscal emergency and shall
thereupon cause the Legislature to assemble in special session for
this purpose. The proclamation shall identify the nature of the
fiscal emergency and shall be submitted by the Governor to the
Legislature, accompanied by proposed legislation to address the
fiscal emergency.
   (2) If the Legislature fails to pass and send to the Governor a
bill or bills to address the fiscal emergency by the 45th day
following the issuance of the proclamation, the Legislature may not
act  upon or take any action  on any other bill  ,
including casting a vote on any other bill in   a policy or
fiscal committee, or on the floor of the Assembly or Senate  ,
nor may the Legislature adjourn for a joint recess, until that bill
or those bills have been passed and sent to the Governor.
   (3) A bill addressing the fiscal emergency declared pursuant to
this section shall contain a statement to that effect.
  Eighth--  That Section 11 of Article IV thereof is amended to read:

      SEC. 11.   (a)   The Legislature or either
house may by resolution provide for the selection of committees
necessary for the conduct of its business, including committees to
ascertain facts and make recommendations to the Legislature on a
subject within the scope of legislative control. 
   (b) Each political party represented in each house shall, to the
greatest extent possible, be proportionately represented in each
legislative committee of that house.  
   (c) (1) The Joint Legislative Budget Committee is established to
ascertain facts and make recommendations to the Legislature and the
houses thereof concerning the state budget, the revenues and
expenditures of the State, and the organization and functions of the
State and its departments, subdivisions, and agencies.  
   (2) The membership of the Joint Legislative Budget Committee shall
be as follows:  
   (A) Chairperson of the Assembly Committee on Budget, appointed by
the Speaker of the Assembly.  
   (B) Vice-Chairperson of the Assembly Committee on Budget,
appointed by the Assembly Minority Leader.  
   (C) Four Assembly Members appointed by the Speaker of the
Assembly.  
   (D) Two Assembly Members appointed by the Assembly Minority
Leader.  
   (E) Chairperson of the Senate Committee on Budget and Fiscal
Review, appointed by the President pro Tempore of the Senate. 

   (F) Vice-Chairperson of the Senate Committee on Budget and Fiscal
Review, appointed by the Senate Minority Leader.  
   (G) Four Senators appointed by the President pro Tempore of the
Senate.  
                                 (H) Two Senators appointed by the
Senate Minority Leader.  
   (3) In addition to the advisory duties set forth in paragraph (1),
the Joint Legislative Budget Committee may, by resolution, approve
any changes proposed by the Governor pursuant to paragraph (5) of
subdivision (c) of Section 12 to the enacted biennial budget bill.
Notwithstanding any other provision of this Constitution, any changes
to the enacted biennial budget bill thus approved shall take
immediate effect as a statute. 
  Ninth--  That Section 12 of Article IV thereof is amended to read:
      SEC. 12.  (a) Within the first  10   seven
 days of each  calendar  odd-numbered
 year, the Governor shall submit to the Legislature, with an
explanatory message, a budget for the  ensuing  
next two-year  fiscal  year  period
commencing on July 1,  containing itemized statements for
recommended state expenditures and estimated state revenues. If
recommended expenditures exceed estimated revenues, the Governor
shall recommend the sources from which the additional revenues should
be provided.
   (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   the last day of the
120-day period specified in paragraph (1) of subdivision (b) of
Section 3  .
   (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  
period  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. 
   (5) When the Legislature is not in session, the Governor may
propose to the Legislature reductions to appropriations made in an
enacted biennial budget bill. 
   (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  passed in the first year of the biennium that are 
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   The  Legislature  may
  shall  not send to the Governor for
consideration,  nor may   and  the Governor
 shall not  sign into law, a budget bill that would
appropriate from the General Fund, for  that  
the two-year  fiscal  year   period
addressed by that budget bill  , a total amount that, when
combined with all appropriations from the General Fund for 
that   the  fiscal  year  
period  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 for that fiscal  year  
period  pursuant to Section 20 of Article XVI, exceeds General
Fund revenues for that fiscal  year   period
 estimated as of the date of the budget bill's passage. That
estimate of General Fund revenues 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 
odd-numbered  year in which the budget bill is not passed by the
Legislature by midnight on  June 15   the last
day of the 120-day period specified in paragraph (1) of subdivision
(b) of Section 3  , 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   the last day of the 120-day 
 period specified in paragraph (1) of subdivision (b) of Section
3  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.
  Tenth--  That Section 1 of Article XIII B thereof is amended to
read:
      SEC. 1.   (a)    The total  annual
 appropriations subject to limitation of the State 
and of each local government   for each two-year fiscal
period  shall not exceed the appropriations limit of the
 entity of government   State  for the
prior  year   two-year fiscal period 
adjusted for the change in the cost of living and the change in
population, except as otherwise provided in this article. 
   (b) The total annual appropriations subject to limitation of each
local government for each fiscal year shall not exceed the
appropriations limit of the local government for the prior fiscal
year adjusted for the change in the cost of living and the change in
population, except as otherwise provided in this article.  
   (c) The amendments to this section made by the measure that added
this subdivision shall take effect on July 1, 2013, and shall apply
to fiscal periods commencing on or after July 1, 2013. 
  Eleventh--  That Section 2 of Article XIII B thereof is amended to
read:
      SEC. 2.  (a) (1) Fifty percent of all revenues received by the
State in a  fiscal year and in the fiscal year immediately
following it   two-year fiscal period  in excess of
the amount  which   that  may be
appropriated by the State in compliance with this article during that
 fiscal year and the fiscal year immediately following it
  period  shall be transferred and allocated, from
a fund established for that purpose, pursuant to Section 8.5 of
Article XVI.
   (2) Fifty percent of all revenues received by the State in a
 fiscal year and in the fiscal year immediately following it
  two-year fiscal period  in excess of the amount
 which   that  may be appropriated by the
State in compliance with this article during that  fiscal
year and the fiscal year immediately following it  
period  shall be returned by a revision of tax rates or fee
schedules within the  next two  subsequent fiscal
 years   period  .
   (b) All revenues received by an entity of government, other than
the State, in a fiscal year and in the fiscal year immediately
following it in excess of the amount  which  
that  may be appropriated by the entity in compliance with this
article during that fiscal year and the fiscal year immediately
following it shall be returned by a revision of tax rates or fee
schedules within the next two subsequent fiscal years. 
   (c) The amendments to this section made by the measure that added
this subdivision shall take effect July 1, 2013, and shall apply to
fiscal periods commencing on or after July 1, 2013. 
  Twelfth--  That Section 3 of Article XIII B thereof is amended to
read:
      SEC. 3.  The appropriations limit for any  fiscal year
  two-year fiscal period, in the case of the State, or
for any fiscal year, in the case of an entity of government other
than the State,  pursuant to  Sec.  
Section  1 shall be adjusted as follows:
   (a)  In the event that   If   
the financial responsibility of providing services is transferred, in
whole or in part, whether by annexation, incorporation  , 
or otherwise, from one entity of government to another, then for the
 fiscal period or fiscal  year in which  such
    the  transfer becomes effective  ,
 the appropriations limit of the transferee entity shall be
increased by such reasonable amount as the  said 
 affected  entities shall mutually agree  to  and
the appropriations limit of the transferor entity shall be decreased
by the same amount.
   (b)  In the event that   If  the
financial responsibility of providing services is transferred, in
whole or in part, from an entity of government to a private entity,
or the financial source for the provision of services is transferred,
in whole or in part, from other revenues of an entity of government
 ,  to regulatory licenses, user charges  ,
 or user fees, then  ,  for the  fiscal period or
fiscal  year of  such   that  transfer
 ,  the appropriations limit of  such 
 the affected  entity of government shall be decreased
accordingly.
   (c) (1)  In the event   If  an emergency
is declared by the legislative body of an entity of government, the
appropriations limit of the affected entity of government may be
exceeded  ,  provided that the appropriations limits in the
following  three years   two fiscal periods, in
the case of the State, or three fiscal years, in the case of local
government,  are reduced accordingly to prevent an aggregate
increase in appropriations resulting from the emergency.
   (2)  In the event   If  an emergency is
declared by the Governor, appropriations approved by a two-thirds
vote of the legislative body of an affected entity of government to
an emergency account for expenditures relating to that emergency
shall  not  constitute appropriations subject to limitation.
As used in this paragraph, "emergency" means the existence, as
declared by the Governor, of conditions of disaster or of extreme
peril to the safety of persons and property within the State, or
parts thereof, caused by such conditions as attack or probable or
imminent attack by an enemy of the United States, fire, flood,
drought, storm, civil disorder, earthquake, or volcanic eruption.

   (d) The amendments to this section made by the measure that added
this subdivision shall take effect July 1, 2013, and shall apply to
fiscal periods commencing on or after July 1, 2013. 
  Thirteenth--  That Section 6 of Article XIII B thereof is amended
to read:
      SEC. 6.  (a) Whenever the Legislature or any state agency
mandates a new program or higher level of service on any local
government, the State shall provide a subvention of funds to
reimburse that local government for the costs of the program or
increased level of service, except that the Legislature may, but need
not, provide a subvention of funds for the following mandates:
   (1) Legislative mandates requested by the local agency affected.
   (2) Legislation defining a new crime or changing an existing
definition of a crime.
   (3) Legislative mandates enacted prior to January 1, 1975, or
executive orders or regulations initially implementing legislation
enacted prior to January 1, 1975.
   (b) (1) Except as provided in paragraph (2), for the 2005-06
fiscal year  and every subsequent fiscal year through the 2012-13
fiscal year, and for the 2013-15 fiscal period  and every
subsequent  two-year  fiscal  year  
period  , for a mandate for which the costs of a local
government claimant have been determined in a preceding fiscal year
 or fiscal period, as applicable,  to be payable by the
State pursuant to law, the Legislature shall either appropriate, in
the  annual   Budget Act  
budget act  , the full payable amount that has not been
previously paid, or suspend the operation of the mandate for the
fiscal year  or fiscal   period  for which the
 annual   Budget Act   budget
act  is applicable in a manner prescribed by law.
   (2) Payable claims for costs incurred prior to the 2004-05 fiscal
year that have not been paid prior to the 2005-06 fiscal year may be
paid over a term of years, as prescribed by law.
   (3) Ad valorem property tax revenues shall not be used to
reimburse a local government for the costs of a new program or higher
level of service.
   (4) This subdivision applies to a mandate only as it affects a
city, county, city and county, or special district.
   (5) This subdivision shall not apply to a requirement to provide
or recognize any procedural or substantive protection, right,
benefit, or employment status of any local government employee or
retiree, or of any local government employee organization, that
arises from, affects, or directly relates to future, current, or past
local government employment and that constitutes a mandate subject
to this section.
   (c) A mandated new program or higher level of service includes a
transfer by the Legislature from the State to cities, counties,
cities and counties, or special districts of complete or partial
financial responsibility for a required program for which the State
previously had complete or partial financial responsibility.
  Fourteenth--  That Section 8 of Article XIII B thereof is amended
to read:
      SEC. 8.  As used in this article and except as otherwise
expressly provided herein:
   (a) "Appropriations subject to limitation" of the State means any
authorization to expend during a  fiscal year  
two-year fiscal period  the proceeds of taxes levied by or for
the State, exclusive of state subventions for the use and operation
of local government  (other   , other  than
subventions made pursuant to Section  6)   6,
 and further exclusive of refunds of taxes, benefit payments
from retirement, unemployment insurance, and disability insurance
funds.
   (b) "Appropriations subject to limitation" of an entity of local
government means any authorization to expend during a fiscal year the
proceeds of taxes levied by or for that entity and the proceeds of
state subventions to that entity  (other   ,
other  than subventions made pursuant to Section  6)
  6,  exclusive of refunds of taxes.
   (c) "Proceeds of taxes"  shall include  
includes  , but  not be   is not 
restricted to, all tax revenues and the proceeds to an entity of
government  ,  from (1) regulatory licenses, user
charges, and user fees to the extent that those proceeds exceed the
costs reasonably borne by that entity in providing the regulation,
product, or service, and (2) the investment of tax revenues. With
respect to any local government, "proceeds of taxes"  shall
include   includes  subventions received from the
State, other than pursuant to Section 6, and, with respect to the
State,  proceeds of taxes shall exclude such  
"proceeds of taxes" excludes these  subventions.
   (d) "Local government" means any city, county, city and county,
school district, special district, authority, or other political
subdivision of or within the State.
   (e) (1) "Change in the cost of living" for the State, a school
district, or a community college district means the percentage change
in California per capita personal income from the preceding 
year   two-year fiscal period, in the case of the
State, or the preceding fiscal year, in the case of a school district
or community college district  .
   (2) "Change in the cost of living" for an entity of local
government, other than a school district or a community college
district, shall be either (A) the percentage change in California per
capita personal income from the preceding year, or (B) the
percentage change in the local assessment roll from the preceding
year for the jurisdiction due to the addition of local nonresidential
new construction. Each entity of local government shall select its
change in the cost of living pursuant to this paragraph annually by a
recorded vote of the entity's governing body.
   (f) "Change in population" of any entity of government, other than
the State, a school district, or a community college district, shall
be determined by a method prescribed by the  Legislature.

    "Change   Legislature. "Change  in
population" of a school district or a community college district
 shall be   means  the percentage change in
the average daily attendance of the school district or  the
number of full-time equivalent students of the  community
college district from the preceding fiscal year, as determined by a
method prescribed by the  Legislature. 
    "Change   Legislature. "Change  in
population" of the State shall be determined by adding (1) the
percentage change in the State's population multiplied by the
percentage of the State's budget in the prior  fiscal year
  two-year fiscal period  that is expended for
other than educational purposes for kindergarten and grades one to
12, inclusive, and the community colleges, and (2) the percentage
change in the total statewide average daily attendance in
kindergarten and grades one to 12, inclusive, and the  number of
full-time equivalent students of the  community colleges,
multiplied by the percentage of the State's budget in the prior
 fiscal year   two-year fiscal period  that
is expended for educational purposes for kindergarten and grades one
to 12, inclusive, and the community  colleges. 
    Any   colleges. Any  determination of
population pursuant to this subdivision, other than that measured by
average daily attendance  or   the number of full-time
equivalent students  , shall be revised, as necessary, to
reflect the periodic census conducted by the United States Department
of Commerce, or successor department.
   (g) "Debt service" means appropriations required to pay the cost
of interest and redemption charges, including the funding of any
reserve or sinking fund required in connection therewith, on
indebtedness existing or legally authorized as of January 1, 1979, or
on bonded indebtedness thereafter approved according to law by a
vote of the electors of the issuing entity voting in an election for
that purpose.
   (h) The "appropriations limit" of each entity of government for
each fiscal year  or fiscal period, as applicable,  is that
amount  which   that  total annual
appropriations subject to limitation may not exceed under Sections 1
and 3. However, the "appropriations limit" of each entity of
government for  the 1978   -79  fiscal year
 1978-79  is the total of the appropriations subject
to limitation of the entity for that fiscal year. For  the 1978
  -   79  fiscal year  1978-79
 , state subventions to local governments, exclusive of
federal grants, are deemed to have been derived from the proceeds of
state taxes.
   (i) Except as otherwise provided in Section 5, "appropriations
subject to limitation" do not include local agency loan funds or
indebtedness funds,  or  investment  (or 
 , or  authorizations to  invest)  
invest,  funds of the State, or of an entity of local government
in accounts at banks or savings and loan associations or in liquid
securities. 
   (j) The amendments to this section made by the measure that added
this subdivision shall take effect July 1, 2013, and shall apply to
fiscal periods commencing on or after July 1, 2013. 
  Fifteenth--  That Section 10.5 of Article XIII B thereof is amended
to read:
      SEC. 10.5.   (a)   For fiscal years beginning
on or after July 1, 1990, the appropriations limit of each entity of
government shall be the appropriations limit for the 1986-87 fiscal
year adjusted for the changes made from that fiscal year pursuant to
this article, as amended by the measure adding this section, adjusted
for the changes required by Section 3. 
   (b) In the case of the State, for the two-year fiscal period
commencing on July 1, 2013, the appropriations limit shall be the
aggregate of the appropriations limits for the 2011-12 and 2012-13
fiscal years, adjusted for the changes made pursuant to this article
and adjusted for the changes required by Section 3. 
  Sixteenth--  That Section 14 is added to Article XIII B thereof, to
read:
      SEC. 14.  State subventions provided during a fiscal period
commencing on or after July 1, 2013, to an entity of local government
shall be applied to an appropriate fiscal year as specified by
statute, for purposes of determining appropriations subject to
limitation for that entity.
  Seventeenth--  That Section 8 of Article XVI thereof is amended to
read:
      SEC. 8.  (a) From all state revenues there shall first be set
apart the moneys to be applied by the State for support of the public
school system and public institutions of higher education.
   (b)  Commencing with the 1990-91 fiscal year 
 For the 2013-15 fiscal period and each subsequent two-year
fiscal period,  the moneys to be applied by the State for the
support of school districts and community college districts shall be
not less than the greater of the following amounts:
   (1) The amount  which   that  , as a
percentage of General Fund revenues  which  
that  may be appropriated pursuant to Article XIII B, equals the
percentage of General Fund revenues appropriated for school
districts and community college districts, respectively, in  the
1986   -   87  fiscal year  1986-87
 .
   (2) The amount required to ensure that the total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes shall not be less than the total
amount from these sources in the prior fiscal  year 
 period  , excluding any revenues allocated pursuant to
subdivision (a) of Section 8.5, adjusted for changes in enrollment
and adjusted for the change in the cost of living pursuant to
paragraph (1) of subdivision (e) of Section 8 of Article XIII B. This
paragraph shall be operative only in a fiscal  year
  period  in which the percentage growth in
California per capita personal income is less than or equal to the
percentage growth in per capita General Fund revenues plus 
one half   one-half  of  one  
1  percent.  For purposes of the 2013-15 fiscal period,
"prior fiscal period," as used in this paragraph and paragraph (3),
is deemed to refer to, collectively, the 2011-12 and 2012-13 fiscal
years. 
   (3) (A) The amount required to ensure that the total allocations
to school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes shall equal the total amount from
these sources in the prior fiscal  year  period
 , excluding any revenues allocated pursuant to subdivision (a)
of Section 8.5, adjusted for changes in enrollment and adjusted for
the change in per capita General Fund revenues.
   (B) In addition, an amount equal to one-half of one
  1  percent times the prior  year
  period  total allocations to school districts and
community  colleges   college districts 
from General Fund proceeds of taxes appropriated pursuant to Article
XIII B and allocated local proceeds of taxes, excluding any revenues
allocated pursuant to subdivision (a) of Section 8.5, adjusted for
changes in enrollment.
   (C) This paragraph (3) shall be operative only in a fiscal
 year   period  in which the percentage
growth in California per capita personal income in a fiscal year is
greater than the percentage growth in per capita General Fund
revenues plus  one half   one-half  of
 one   1  percent.
   (c) In any fiscal  year   period  , if
the amount computed pursuant to paragraph (1) of subdivision (b)
exceeds the amount computed pursuant to paragraph (2) of subdivision
(b) by a difference that exceeds  one and one-half 
 1-   1/2  percent of General Fund revenues, the
amount in excess of  one and one-half   1- 
 1/2  percent of General Fund revenues shall not be
considered allocations to school districts and community 
colleges  college districts  for purposes of
computing the amount of state aid pursuant to paragraph (2) or
 3   (3)  of subdivision (b) in the
subsequent fiscal  year   period  .
   (d) In any fiscal  year   period  in
which school districts and community college districts are allocated
funding pursuant to paragraph (3) of subdivision (b) or pursuant to
subdivision (h), they shall be entitled to a maintenance factor,
equal to the difference between (1) the amount of General Fund moneys
 which   that  would have been
appropriated pursuant to paragraph (2) of subdivision (b) if that
paragraph had been operative or the amount of General Fund moneys
 which   that  would have been appropriated
pursuant to subdivision (b) had subdivision (b) not been suspended,
and (2) the amount of General Fund moneys actually appropriated to
school districts and community college districts in that fiscal
 year   period  .
   (e) The maintenance factor for school districts and community
college districts determined pursuant to subdivision (d) shall be
adjusted  annually   each fiscal  
period  for changes in enrollment, and adjusted for the change
in the cost of living pursuant to paragraph (1) of subdivision (e) of
Section 8 of Article XIII B, until it has been allocated in full.
The maintenance factor shall be allocated in a manner determined by
the Legislature in each fiscal  year   period
 in which the percentage growth in per capita General Fund
revenues exceeds the percentage growth in California per capita
personal income. The maintenance factor shall be reduced each
 year   fiscal   period  by the
amount allocated by the Legislature in that fiscal  year
  period  . The minimum maintenance factor amount
to be allocated in a fiscal year   period 
shall be equal                                                to the
product of General Fund revenues from proceeds of taxes and one-half
of the difference between the percentage growth in per capita General
Fund revenues from proceeds of taxes and in California per capita
personal income, not to exceed the total dollar amount of the
maintenance factor.
   (f) For purposes of this section, "changes in enrollment" shall be
measured by the percentage change in average daily attendance.
However, in any fiscal  year   period  ,
there shall be no adjustment for decreases in enrollment between the
prior fiscal  year  period  and the current
fiscal  year   period  unless there
 have been   were also  decreases in
enrollment between the second prior fiscal  year 
 period  and the prior fiscal  year and between the
third prior fiscal year and the second prior fiscal year 
 period  .  For purposes of this subdivision, "prior
fiscal period" as applied prior to July 1, 2013, is deemed to refer
to the average of the enrollments for two fiscal years, as
appropriate.  
   (g) For purposes of Article XIII B, the Legislature shall
identify, in the budget bill for the 2013-15 fiscal period and each
subsequent fiscal period, the amount of the appropriations made by
that budget bill that apply for the support of school districts and
community college districts for each of the two fiscal years within
that fiscal period. 
   (h) Subparagraph (B) of paragraph (3) of subdivision (b) may be
suspended for one  year   fiscal period 
only when made part of or included within any bill enacted pursuant
to Section 12 of Article IV. All other provisions of subdivision (b)
may be suspended for one  year   fiscal period
 by the enactment of an urgency statute pursuant to Section 8 of
Article IV, provided that the urgency statute may not be made part
of or included within any bill enacted pursuant to Section 12 of
Article IV. 
   (i) The amendments to this section made by the measure that added
this subdivision shall take effect July 1, 2013, and shall apply to
fiscal periods commencing on or after July 1, 2013. 
  Eighteenth--  That Section 8.5 of Article XVI thereof is amended to
read:
      SEC. 8.5.  (a) In addition to the amount required to be applied
for the support of school districts and community college districts
pursuant to Section 8,  the Controller shall  during
each fiscal  year   period the Controller shall
 transfer and allocate all revenues available pursuant to
paragraph  1   (1)  of subdivision (a) of
Section 2 of Article XIII B to that portion of the State School Fund
restricted for elementary and high school purposes, and to that
portion of the State School Fund restricted for community college
purposes, respectively, in proportion to the enrollment in school
districts and community college districts respectively.
   (1) With respect to funds allocated to that portion of the State
School Fund restricted for elementary and high school purposes, no
transfer or allocation of funds pursuant to this section shall be
required at any time that the Director of Finance and the
Superintendent of Public Instruction mutually determine that current
annual expenditures per student equal or exceed the average annual
expenditure per student of the 10 states with the highest annual
expenditures per student for elementary and high schools, and that
average class size equals or is less than the average class size of
the 10 states with the lowest class size for elementary and high
schools.
   (2) With respect to funds allocated to that portion of the State
School Fund restricted for community college purposes, no transfer or
allocation of funds pursuant to this section shall be required at
any time that the Director of Finance and the Chancellor of the
California Community Colleges mutually determine that current annual
expenditures per student for community colleges in this State equal
or exceed the average annual expenditure per student of the 10 states
with the highest annual expenditures per student for community
colleges.
   (b) Notwithstanding  the provisions of  Article
XIII B, funds allocated pursuant to this section  shall
  do  not constitute appropriations subject to
limitation.
   (c) From any funds transferred to the State School Fund pursuant
to subdivision (a), the Controller shall  ,  each 
year   fiscal period   ,  allocate to each
school district and community college district an equal amount per
enrollment in school districts from the amount in that portion of the
State School Fund restricted for elementary and high school purposes
and an equal amount per enrollment in community college districts
from that portion of the State School Fund restricted for community
college purposes.
   (d) All revenues allocated pursuant to subdivision (a) shall be
expended solely for the purposes of instructional improvement and
accountability as required by law.
   (e) Any school district maintaining an elementary or secondary
school shall develop and cause to be prepared an annual audit
accounting for such funds and shall adopt a School Accountability
Report Card for each school. 
   (f) The amendments to this section made by the measure that added
this subdivision shall take effect July 1, 2013, and shall apply to
fiscal periods commencing on or after July 1, 2013. 
  Nineteenth--  That Section 20 of Article XVI thereof is amended to
read:
      SEC. 20.  (a) The Budget Stabilization Account is hereby
created in the General Fund.
   (b) In each fiscal year  or fiscal period  as specified
in paragraphs (1) to  (3)   (4)  ,
inclusive, the Controller shall transfer from the General Fund to the
Budget Stabilization Account 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 
until 2013  , a sum equal to 3 percent of the estimated amount
of General Fund revenues for the current fiscal year. 
   (4) No later than September 30, 2013, and by September 30 of each
odd-numbered year thereafter, a sum equal to 3 percent of the
estimated amount of General Fund revenues for the current fiscal
period. 
   (c) The transfer of moneys shall not be required by subdivision
(b) in any fiscal year  or fiscal period  to the extent that
the resulting balance in the account would exceed 5 percent of the
General Fund revenues estimate set forth in the budget bill for that
fiscal year  or fiscal period  , 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  or fiscal periods  , to transfer into the
account 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 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 may be suspended or reduced for a fiscal year
 or fiscal period, as applicable,  as specified by an
executive order issued by the Governor no later than June 1 of the
 immediately  preceding fiscal year  or  fiscal
period  .
   (f) (1) Of the moneys transferred to the account in each fiscal
year  or fiscal period  , 50 percent, up to the aggregate
amount of five billion dollars ($5,000,000,000) for all fiscal years
 and fiscal periods  , shall be deposited in the Deficit
Recovery Bond Retirement Sinking Fund Subaccount, which is hereby
created in the account 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, and may be transferred to the General
Fund pursuant to paragraph (2).
   (2) All other funds transferred to the account in a fiscal year
 or fiscal period  shall not be deposited in the sinking
fund subaccount and may, by statute, be transferred to the General
Fund.
  Twentieth--  That Section 2 of Article XIX B thereof is amended to
read:
      SEC. 2.  (a) For the 2003-04 fiscal year and each fiscal year
 or fiscal period  thereafter,  as applicable,  all
revenues that are collected during the fiscal year  or fiscal
period  from taxes under the Sales and Use Tax Law (Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code), or any successor to that law, upon the sale, storage,
use, or other consumption in this State of motor vehicle fuel, as
defined for purposes of the Motor Vehicle Fuel License Tax Law (Part
2 (commencing with Section 7301) of Division 2 of the Revenue and
Taxation Code), shall be deposited into the Transportation Investment
Fund or its successor, which is hereby created in the State Treasury
and which is hereby declared to be a trust fund. The Legislature may
not change the status of the Transportation Investment Fund as a
trust fund.
   (b) (1) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys
in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, in accordance with Section 7104 of
the Revenue and Taxation Code as that section read on March 6, 2002.
   (2) For  each of  the 2008-09  , 2009-10, 2010-11,
2011-12, and 2012-13 fiscal  year   years,
 and  for  each  two-year  fiscal 
year   period  thereafter, moneys in the
Transportation Investment Fund shall be allocated solely for the
following purposes:
   (A) Public transit and mass transportation. Moneys appropriated
for public transit and mass transportation shall be allocated as
follows: (i) Twenty-five percent pursuant to subdivision (b) of
Section 99312 of the Public Utilities Code, as that section read on
July 30, 2009; (ii) Twenty-five percent pursuant to subdivision (c)
of Section 99312 of the Public Utilities Code, as that section read
on July 30, 2009; and (iii) Fifty percent for the purposes of
subdivisions (a) and (b) of Section 99315 of the Public Utilities
Code, as that section read on July 30, 2009.
   (B) Transportation capital improvement projects, subject to the
laws governing the State Transportation Improvement Program, or any
successor to that program.
   (C) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by cities, including
a city and county.
   (D) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by counties,
including a city and county.
   (c) For  each of  the 2008-09  , 2009-10, 2010-11,
2011-12, and 2012-13  fiscal  year   years,
 and  for  each  two-year  fiscal 
year   period  thereafter, moneys in the
Transportation Investment Fund are hereby continuously appropriated
to the Controller without regard to fiscal years, which shall be
allocated as follows: 
   (A) 
    (1)  Twenty percent of the moneys for the purposes set
forth in subparagraph (A) of paragraph (2) of subdivision (b).

   (B) 
    (2)  Forty percent of the moneys for the purposes set
forth in subparagraph (B) of paragraph (2) of subdivision (b).

   (C) 
    (3)  Twenty percent of the moneys for the purposes set
forth in subparagraph (C) of paragraph (2) of subdivision (b).

   (D) 
    (4)  Twenty percent of the moneys for the purposes set
forth in subparagraph (D) of paragraph (2) of subdivision (b).
   (d) The Legislature may not enact a statute that modifies the
percentage shares set forth in subdivision (c) until all of the
following have occurred:
   (1) The California Transportation Commission has held no less than
four public hearings in different parts of the State to receive
public input about the need for public transit, mass transportation,
transportation capital improvement projects, and street and highway
maintenance  ;   . 
   (2) The California Transportation Commission has published a
report describing the input received at the public hearings and how
the modification to the statutory allocation is consistent with the
orderly achievement of local, regional and statewide goals for public
transit, mass transportation, transportation capital improvements,
and street and highway maintenance in a manner that is consistent
with local general plans, regional transportation plans, and the
California Transportation Plan  ;   . 
   (3) Ninety days have passed since the publication of the report by
the California Transportation Commission.
   (4) The statute enacted by the Legislature pursuant to this
subdivision must be by a bill passed in each house of the Legislature
by rollcall vote entered in the journal, two-thirds of the
membership concurring, provided that the bill does not contain any
other unrelated provision and that the revenues described in
subdivision (a) are expended solely for the purposes set forth in
paragraph (2) of subdivision (b).
   (e) (1) An amount equivalent to the total amount of revenues that
were not transferred from the General Fund of the State to the
Transportation Investment Fund, as of July 1, 2007, because of a
suspension of transfer of revenues pursuant to this section as it
read on January 1, 2006, but excluding the amount to be paid to the
Transportation Deferred Investment Fund pursuant to Section 63048.65
of the Government Code, shall be transferred from the General Fund to
the Transportation Investment Fund no later than June 30, 2016.
Until this total amount has been transferred, the amount of transfer
payments to be made in each fiscal year  or fiscal period 
shall not be less than one-tenth of the total amount required to be
transferred by June 30, 2016. The transferred revenues shall be
allocated solely for the purposes set forth in this section as if
they had been received in the absence of a suspension of transfer of
revenues.
   (2) The Legislature may provide by statute for the issuance of
bonds by the state or local agencies, as applicable, that are secured
by the minimum transfer payments required by paragraph (1). Proceeds
from the sale of those bonds shall be allocated solely for the
purposes set forth in this section as if they were revenues subject
to allocation pursuant to paragraph (2) of subdivision (b).
   (f) This section constitutes the sole method of allocating,
distributing, and using the revenues described in subdivision (a).
The purposes described in paragraph (2) of subdivision (b) are the
sole purposes for which the revenues described in subdivision (a) may
be used. The Legislature may not enact a statute or take any other
action which, permanently or temporarily, does any of the following:
   (1) Transfers, diverts, or appropriates the revenues described in
subdivision (a) for any other purposes than those described in
paragraph (2) of subdivision (b)  ;   . 
   (2) Authorizes the expenditures of the revenues described in
subdivision (a) for any other purposes than those described in
paragraph (2) of subdivision (b)  or;   . 
   (3) Borrows or loans the revenues described in subdivision (a),
regardless of whether these revenues remain in the Transportation
Investment Fund or are transferred to another fund or account such as
the Public Transportation Account, a trust fund in the State
Transportation Fund.
   (g) For purposes of this article, "mass transportation," "public
transit" and "mass transit" have the same meanings as "public
transportation." "Public transportation" means:
   (1) (A) Surface transportation service provided to the general
public, complementary paratransit service provided to persons with
disabilities as required by  42 U.S.C.   Section
 12143  of Title 42 of the United States Code  , or
similar transportation provided to people with disabilities or the
elderly; (B) operated by bus, rail, ferry, or other conveyance on a
fixed route, demand response, or otherwise regularly available basis;
(C) generally for which a fare is charged; and (D) provided by any
transit district, included transit district, municipal operator,
included municipal operator, eligible municipal operator, or transit
development board, as those terms were defined in Article 1 
(commencing with Section 99200)  of Chapter 4 of Part 11 of
Division 10 of the Public Utilities Code on January 1, 2009, a joint
powers authority formed to provide mass transportation services, an
agency described in subdivision (f) of Section 15975 of the
Government Code, as that section read on January 1, 2009, any
recipient of funds under  Sections   Section
 99260, 99260.7,  or  99275, or subdivision (c) of
Section 99400 of the Public Utilities Code, as those sections read on
January 1, 2009, or a consolidated agency as defined in Section
132353.1 of the Public Utilities Code, as that section read on
January 1, 2009.
   (2) Surface transportation service provided by the Department of
Transportation pursuant to subdivision (a) of Section 99315 of the
Public Utilities Code, as that section read on July 30, 2009.
   (3) Public transit capital improvement projects, including those
identified in subdivision (b) of Section 99315 of the Public
Utilities Code, as that section read on July 30, 2009.
   (h) If the Legislature reduces or repeals the taxes described in
subdivision (a) and adopts an alternative source of revenue to
replace the moneys derived from those taxes, the replacement revenue
shall be deposited into the Transportation Investment Fund, dedicated
to the purposes listed in paragraph (2) of subdivision (b), and
allocated pursuant to subdivision (c). All other provisions of this
article shall apply to any revenues adopted by the Legislature to
replace the moneys derived from the taxes described in subdivision
(a).
  Twenty-First--  That Section 4 of Article XXXV thereof is amended
to read:
      SEC. 4.  Funds authorized for, or made available to, the
institute shall be continuously appropriated without regard to fiscal
year  or fiscal period  ,  shall  be available and
used only for the purposes provided in this article, and shall not
be subject to appropriation or transfer by the Legislature or the
Governor for any other purpose.
  Twenty-Second--  That the amendments set forth in this measure
shall become operative on the first Monday in December 2012 after the
date on which this measure is approved by the voters.

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