California Senate Bill SCA17 Latest Draft

 BILL NUMBER: SCA 17INTRODUCED BILL TEXT INTRODUCED BY Senator Hollingsworth MARCH 9, 2009 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 thereof, by amending Section 8 of Article III thereof, by amending Section 4 of, and amending, repealing, and adding Sections 3, 8, 10, and 12 of, Article IV thereof, by amending Sections 6 and 10.5 of, adding Section 14 to, and amending, repealing, and adding Sections 1, 2, 3, and 8 of, Article XIII B thereof, and by amending Section 20 of, and amending, repealing, and adding Sections 8 and 8.5 of, Article XVI thereof, relating to legislative powers. LEGISLATIVE COUNSEL'S DIGEST SCA 17, as introduced, Hollingsworth. Legislative powers. (1) The California Constitution requires the Legislature to convene in regular session for 2-year periods at noon on the first Monday in December of each even-numbered year to consider legislation, including the Budget Bill, and requires that the Budget Bill provide for an annual budget. Existing law also provides that, on extraordinary occasions, the Governor by proclamation may cause the Legislature to assemble in special session to legislate on subjects specified in the proclamation. This measure would instead require the Legislature, on and after December 6, 2010, to convene in annual regular session, with a session held in an odd-numbered year to be known as a general session when general legislation may be adopted, subject to specified limitations, and a session held in an even-numbered year to be known as a budget session. The measure would require the Legislature to adopt a 2-year Budget Bill during each budget session, and would prohibit the Legislature during that session from considering legislation other than the Budget Bill, revenue acts necessary therefor, and acts necessary to provide for the expenses of the session, except that the Legislature could also consider bills that would repeal provisions of existing law during a budget session held in a gubernatorial election year. The measure would limit each annual regular session to not more than 100 calendar days, not including Saturdays and Sundays, except that the session could be reconvened to consider bills vetoed by the Governor. The measure would make various conforming changes relating to annual sessions and the 2-year budget requirement, including providing for the calculation of the state appropriations limit, the funding of the Budget Stabilization Account, and the calculation of the state school funding obligation on a 2-year basis. (2) The California Constitution requires the California Citizens Compensation Commission, at or before the end of each fiscal year, to adopt a resolution to adjust the annual salary and the medical, dental, insurance, and similar benefits of elected constitutional officers, as defined, including Members of the Legislature. The annual salary and benefits specified in this resolution become effective on and after the first Monday of the next December without further action by the Legislature. This measure would require the commission to reduce the annual salary of Members of the Legislature in the commission's first resolution following the adoption of this measure by 2/3, as specified, and would require the commission to apply the existing criteria for adjusting this annual salary to maintain it at 1/3 of the amount that would otherwise be determined. (3) Existing law provides for travel and living expenses for Members of the Legislature in connection with their official duties to be prescribed by statute passed by rollcall vote entered in the journal, 2/3 of the membership of each house concurring, with specified limitations. This measure would prohibit a Member of the Legislature from receiving living expenses for more than 100 days in an annual regular session, and would prohibit a Member of the Legislature from receiving living expenses for more than 45 days spent in special sessions in a calendar year. 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 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   statutes that go into effect immediately upon their enactment  . (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)  (1)    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,   (2)     Thereafter,  at or before the end of each fiscal year, the commission shall, by a single resolution adopted by a majority of the membership of the commission, adjust the annual salary and the medical, dental, insurance, and other similar benefits of state officers  established pursuant to paragraph (1)  . The annual salary and benefits specified in the resolution shall be effective on and after the first Monday of the next December.  (3) Notwithstanding Section 4, at the time of adoption of the first annual resolution pursuant to paragraph (2) following the effective date of the amendment adding this paragraph, the commission shall reduce the annual salary that it would otherwise establish at that time for Members of the Legislature by two-thirds, and all future adjustments to that annual salary pursuant to paragraph (2) based on the considerations specified in subdivision (h) shall set the annual salary of Members of the Legislature at one-third of the amount that would otherwise result from the application of those considerations.  (h) In establishing or adjusting the annual salary and the medical, dental, insurance, and other similar benefits, 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. (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. () "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. 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 and each house shall immediately organize. 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) 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.  (c) This section shall not apply to any legislative session commencing on or after December 6, 2010. This section shall remain in effect until December 6, 2010, and as of that date is repealed. Section 3 of Article IV, as added by the measure that amended this section to add this subdivision, shall apply to legislative sessions commencing on or after December 6, 2010.  Fourth-- That Section 3 is added to Article IV thereof, to read: SEC. 3. (a) (1) The regular sessions of the Legislature shall be annual. The annual session held in an odd-numbered year shall be known as a general session, and that held in an even-numbered year shall be known as a budget session. (2) The Legislature shall convene in general session at noon on the Monday after January 1 of each odd-numbered year and each house shall immediately organize. The Legislature shall convene in budget session on the first Monday in February of each even-numbered year and each house shall immediately organize. Except as provided by paragraph (3), each general session or budget session shall adjourn sine die by operation of the Constitution at midnight on the date 100 calendar days following the date the session was convened, not including Saturdays or Sundays. (3) The Legislature may reconvene a regular session at any time during a calendar year for the purpose of considering one or more bills vetoed by the Governor. (b) On extraordinary occasions, including a case in which it is necessary to make changes to a budget act due to a fiscal emergency as provided by subdivision (d) of Section 10, the Governor by proclamation may cause the Legislature to assemble in special session. Except for a session assembled as provided by subdivision (d) of Section 10, a special session may not exceed 45 calendar days in duration and, if not previously adjourned sine die, at the end of that period is concluded by operation of this subdivision. When so assembled the Legislature has power to legislate only on subjects specified in the proclamation but may provide for expenses and other matters incidental to the session. (c) (1) Except as provided by paragraph (2), at a budget session the Legislature shall consider no bill other than a budget bill for the succeeding two fiscal years, revenue acts necessary therefor, and acts necessary to provide for the expenses of the session. (2) At a budget session in a gubernatorial election year, the Legislature may also consider bills that would only repeal existing provisions of law. (d) At the 2011 general session, the Legislature shall pass a budget bill for the 2011-12 fiscal year. Fifth-- 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. A Member may not receive payment for  travel and living expenses  incurred  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.  A Member of the Legislature shall not receive payment for more than 100 days of living expenses for a regular session. Additionally, regardless of the number and duration of special sessions in a calendar year, a Member of the Legislature shall not receive payment for more than 45 days of living expenses for any calendar year for special   sessions.  (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   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. 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  . 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 (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) 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.  (e) This section shall not apply to any legislative session commencing on or after December 6, 2010. This section shall remain in effect until December 6, 2010, and as of that date is repealed. Section 8 of Article IV, as added by the measure that amended this section to add this subdivision, shall apply to legislative sessions commencing on or after December 6, 2010.  Seventh-- That Section 8 is added to Article IV thereof, to read: SEC. 8. (a) At a regular session no bill other than a 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 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 three days in each house except that the house may dispense with this requirement by rollcall vote entered in the journal, two-thirds of the membership concurring. No bill may be passed until the bill with amendments has been printed and distributed to the Members. 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 by paragraph (2), a statute enacted at a regular session shall go into effect on the next January 1 following its enactment 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) Statutes calling elections, statutes providing for tax levies or appropriations for the usual current expenses of the State, budget acts, 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 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. (Sec. 8 amended June 5, 1990, by Prop. 109. Res. Ch. 74, 1988.) Eighth-- 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) Any bill passed by the Legislature before September 1 of the second calendar year of the biennium of the legislative session and in the possession of the Governor on or after September 1 that is not returned on or before September 30 of that year becomes a statute. (3) Any other bill presented to the Governor that is not returned within 12 days becomes a statute. (4) 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) If the 12th day of the period within which the Governor is required to perform an act pursuant to paragraph (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) The Legislature may not present any bill to the Governor after November 15 of the second calendar year of the biennium of the legislative session. (e) 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) (1) If, following the enactment of the budget bill for the 2004-05 fiscal year or any subsequent fiscal year, the Governor determines that, for that fiscal year, General Fund revenues will decline substantially below the estimate of General Fund revenues upon which the budget bill for that fiscal year, 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 on any other bill, 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.  (g) This section shall not apply to any legislative session commencing on or after December 6, 2010, except that subdivision (f) shall be operative until July 1, 2010. This section shall remain in effect until December 6, 2010, and as of that date is repealed. Section 10 of Article IV, as added by the measure that amended this section to add this subdivision, shall apply to legislative sessions commencing on or after December 6, 2010, and subdivision (f) of that section shall apply commencing July 1, 2010.  Ninth-- That Section 10 is added to Article IV thereof, 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 passed by the Legislature in a regular session on or before the date on which the session is adjourned sine die, and in the possession of the Governor on or after that date, that is not returned within 30 days after that date becomes a statute. (2) Any other bill presented to the Governor that is not returned within 12 days becomes a statute. (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. (4) If the 12th day of the period within which the Governor is required to perform an act pursuant to paragraph (2) or (3) is a Saturday, Sunday, or holiday, the period is extended to the next day that is not a Saturday, Sunday, or holiday. (c) 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. (d) (1) If, following the enactment of the budget bill for the 2010-11 or 2011-12 fiscal year, or the budget bill for the 2012-14 fiscal period or any subsequent two-year fiscal period, the Governor determines that, for that fiscal year or fiscal period, 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 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 or by the conclusion of the special session, whichever is sooner, the Legislature may not act on any other bill until a bill or bills to address the fiscal emergency 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. Tenth-- 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 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  , except that in 2011 the Legislature shall pass the budget bill by midnight of the date the 2011 general session is adjourned sine die  . (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  or a bill amending a budget act,  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 for that fiscal year pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscal year 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.  (g) This section shall not apply to the budget or budget bill for any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 12 of Article IV, as added by the measure that amended this section to add this subdivision, shall apply to the budget and budget bill for fiscal periods commencing on or after July 1, 2012.  Eleventh-- That Section 12 is added to Article IV thereof, to read: SEC. 12. (a) Within the first three days of the budget session in each even-numbered calendar year, the Governor shall submit to the Legislature, with an explanatory message, a budget for the two-year fiscal period commencing on July 1 of that even-numbered calendar year, 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 of the date the budget session is adjourned sine die. (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 two-year fiscal 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. (d) No bill, except the budget bill or a bill amending a budget act, 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) 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 the two-year fiscal period addressed by the budget bill, a total amount that, when combined with all appropriations from the General Fund for that fiscal period made as of the date of the budget bill's passage and with the amount of any General Fund moneys transferred to the Budget Stabilization Account for that fiscal period pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscal 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. Twelfth-- 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 shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.  (b) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 1 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Thirteenth-- That Section 1 is added to Article XIII B thereof, to read: SECTION 1. (a) The total appropriations subject to limitation of the State for each two-year fiscal period, as specified in Section 12 of Article IV, may not exceed the appropriations limit of the State for the prior 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 may 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. Fourteenth-- 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 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 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 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 shall be returned by a revision of tax rates or fee schedules  within   during  the  next   subsequent  two  subsequent  fiscal years. (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) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 2 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Fifteenth-- That Section 2 is added to Article XIII B thereof, to read: SEC. 2. (a) (1) Fifty percent of all revenues received by the State in a two-year fiscal period in excess of the amount that may be appropriated by the State in compliance with this article during that 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 two-year fiscal period in excess of the amount that may be appropriated by the State in compliance with this article during that period shall be returned by a revision of tax rates or fee schedules within the subsequent fiscal period. (b) All revenues received by an entity of government other than the State in a fiscal year and in the subsequent fiscal year in excess of the amount 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. Sixteenth-- That Section 3 of Article XIII B thereof is amended to read: SEC. 3. The appropriations limit for any fiscal year 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 year in which  such   that  transfer becomes effective the appropriations limit of the transferee entity shall be increased by such reasonable amount as  the said   those  entities shall mutually agree 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 year of  such   that  transfer the appropriations limit of  such   the  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 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   do 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) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 3 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Seventeenth-- That Section 3 is added to Article XIII B thereof, to read: SEC. 3. The appropriations limit for any 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 Section 1 shall be adjusted as follows: (a) 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 the transfer becomes effective, the appropriations limit of the transferee entity shall be increased by such reasonable amount as the affected entities shall mutually agree and the appropriations limit of the transferor entity shall be decreased by the same amount. (b) 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 that transfer, the appropriations limit of the affected entity of government shall be decreased accordingly. (c) (1) 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 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) 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 do 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. Eighteenth-- 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 2011-12, and for the 2012-14 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. Nineteenth-- 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 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. (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 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 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 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 that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the community 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 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, investment (or authorizations to 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) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 8 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Twentieth-- That Section 8 is added to Article XIII B thereof, 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 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 than subventions made pursuant to Section 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 than subventions made pursuant to Section 6, exclusive of refunds of taxes. (c) "Proceeds of taxes" includes, but 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" includes subventions received from the State, other than pursuant to Section 6, and, with respect to the State, "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 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 in population" of a school district or a community college district 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 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 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 in the community colleges, multiplied by the percentage of the State's budget in the prior two-year fiscal period that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the community 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 that the total 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 is the total of the appropriations subject to limitation of the entity for that fiscal year. For the 1978-79 fiscal year, 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 authorizations to 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. Twenty-First-- 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, 2012, the appropriations limit shall be the aggregate of the appropriations limits for the 2010-11 and 2011-12 fiscal years, adjusted for the changes made pursuant to this article and adjusted for the changes required by Section 3.  Twenty-Second-- 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, 2012, 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. Twenty-Third-- 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, 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, 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 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. (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, 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 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 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, 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. (d) In any fiscal year in which school districts and community college districts are allocated funding pursuant to paragraph (3) of subdivision (b) or pursuant to subdivision  (h)   (g)  , 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. (e) The maintenance factor for school districts and community college districts determined pursuant to subdivision (d) shall be adjusted annually 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 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  fiscal  year by the amount allocated by the Legislature in that fiscal year. The minimum maintenance factor amount to be allocated in a fiscal year 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, there shall be no adjustment for decreases in enrollment between the prior fiscal year and the current fiscal year unless there have been decreases in enrollment between the second prior fiscal year and the prior fiscal year and between the third prior fiscal year and the second prior fiscal year.  (h)   (g)    Subparagraph (B) of paragraph (3) of subdivision (b) may be suspended for one year 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 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.  (h) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 8 of Article XVI, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Twenty-Fourth-- That Section 8 is added to Article XVI thereof, 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) For the 2012-14 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 that, as a percentage of General Fund revenues 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. (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 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 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 of 1 percent. For purposes of the 2012-14 fiscal period, "prior fiscal period," as used in this paragraph and paragraph (3), is deemed to refer to, collectively, the 2010-11 and 2011-12 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 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 1 percent times the prior fiscal period 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, 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 period in which the percentage growth in California per capita personal income in a fiscal period is greater than the percentage growth in per capita General Fund revenues plus one-half of 1 percent. (c) In any fiscal 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 11/2 percent of General Fund revenues, the amount in excess of 11/2 percent of General Fund revenues shall not be considered allocations to school districts and community college districts for purposes of computing the amount of state aid pursuant to paragraph (2) or (3) of subdivision (b) in the subsequent fiscal period. (d) In any fiscal 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 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 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 period. (e) The maintenance factor for school districts and community college districts determined pursuant to subdivision (d) shall be adjusted 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 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 fiscal period by the amount allocated by the Legislature in that fiscal period. The minimum maintenance factor amount to be allocated in a fiscal 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. The adjustments and repayment shall also include the maintenance factors, if any, determined pursuant to subdivision (d) of the predecessor to this section. (f) For purposes of this section, "changes in enrollment" shall be measured by the percentage change in average daily attendance. However, in any fiscal period, there shall be no adjustment for decreases in enrollment between the prior fiscal period and the current fiscal period unless there were also decreases in enrollment between the second prior fiscal period and the prior fiscal period. For purposes of this subdivision, "prior fiscal period" as applied prior to July 1, 2012, 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 2012-14 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 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 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. (Sec. 8 amended June 5, 1990, by Prop. 111. Res. Ch. 66, 1989.Effective July 1, 1990.) Twenty-Fifth-- 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  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  fiscal  year  ,  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) This section shall not apply to any fiscal period commencing on or after July 1, 2012. This section shall remain in effect until July 1, 2012, and as of that date is repealed. Section 8.5 of Article XVI, as added by the measure that amended this section to add this subdivision, shall apply to fiscal periods commencing on or after July 1, 2012.  Twenty-Sixth-- That Section 8.5 is added to Article XVI thereof, 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, during each fiscal period the Controller may transfer and allocate all revenues available pursuant to paragraph (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 Article XIII B, funds allocated pursuant to this section 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 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 those funds and shall adopt a School Accountability Report Card for each school. Twenty-Seventh-- 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 2012  , 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, 2012, and by September 30 of each even-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   sixteen  billion dollars  ($8,000,000,000)   ($16,000,000,000)  , 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.