Copyright© 1999 by School Services of California, Inc.

December 17, 1999


Insurance Referendums Added to March 2000 Ballot

The Secretary of State has announced that two referendums aimed at preventing the implementation of legislation adopted this year to allow "third party lawsuits," have qualified for the March 2000 Ballot. The referendums will appear as Proposition 30 and 31 and are officially titled, "Referendum Petition To Overturn 'Fair Insurance Responsibility Act.'"

As reported in the November 12, 1999, Update article, "Referendums to Overturn Major Liability Bills Gain Speed," the referendums are sponsored by a coalition of consumer, business, and education groups, including the Schools Excess Liability Fund (SELF), which are concerned that implementation of the two bills, AB 1309 (Chapter 721/1999) and SB 1237 (Chapter 720/1999), would increase frivolous lawsuits and insurance premium costs in every industry, including education.

California voters must vote "No" on the referendums to prevent the bills from going into law, a different approach than what is used for initiatives, which typically require an affirmative vote to be enacted.

To date, 19 Propositions have qualified and will appear on the March 2000 ballot. Of key interest to school agencies are measures that would lower the vote threshold for the passage of local school bonds, earmark lottery funding for instructional materials, repeal tobacco tax surcharges being used for child development and smoking prevention programs, and a bond measure geared at funding reading and literacy programs. Below are the official Proposition numbers for those measures:

Proposition 14: California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000.

Proposition 20: California State Lottery. Allocation for Instructional Materials.

Proposition 26: School Facilities. Local Majority Vote. Bonds, Taxes.

Proposition 28: Repeal of Proposition 10 Tobacco Surtax.

Proposition 30: Referendum Petition to Overturn "The Fair Insurance Responsibility Act."

Proposition 31: Referendum Petition to Overturn "The Fair Insurance Responsibility Act."

There are five initiatives that would impact public educational agencies in the process of qualifying to be placed on the November 2000 ballot. One measure is awaiting signature verification by the Secretary of State. This measure would reinforce a local agency's ability to contract with private entities for engineering and architectural services in all phases of public works projects. The initiative is the opposite of Proposition 224 rejected by voters in June 1998 that would have imposed restrictions on the use of private engineers and architects by local agencies.

Additionally, there are four initiatives that are awaiting title and summary. One measure, sponsored by Silicon Valley entrepreneur Tim Draper, would institute a voucher plan, and another measure, sponsored by the California Teachers Association, would earmark new tax revenues to bring California spending for public education to the national average. Two other measures, one of which is sponsored by Senator Jack O'Connell (D-Carpinteria), would reinforce California's Class Size Reduction efforts. Additional information regarding the March and November 2000 ballot can be found on the Secretary of State's web site: www.ss.ca.gov.

-- Nancy LaCasse