Proposition 65 was aCalifornia ballot proposition on the November 2, 2004 ballot. It failed to pass with 3,901,748 (37.6%) votes in favor and 6,471,506 (62.4%) against. It was a stateconstitutional amendment that would have required voter approval for any state legislation reducing certainlocal government revenues from January 2003 levels. It was officially known as theLocal Taxpayers and Public Safety Protection Act.
Local governments (cities andcounties) inCalifornia primarily receive their revenue from three sources:property taxes, localsales taxes, and thevehicle license fees. Proposition 65 was born out of frustration from local governments as theCalifornia state government increasingly used local revenues to pay forstate government programs, especially during tough financial times.
Proponents of the proposition ultimately used it as a bargaining tool to negotiate an agreement withGovernorArnold Schwarzenegger and theCalifornia State Legislature on protecting local government revenues. The result was the compromiseProposition 1A on the same ballot, which provided more flexible terms and deferred its restrictions until 2006. As a result, previous proponents of Proposition 65 dropped their support in favor of Proposition 1A.
This proposition conflicted with the provisions of Proposition 1A on the same ballot. TheCalifornia Constitution provides that if the provisions of two approved propositions are in conflict, only the provisions of the measure with the higher number of "yes" votes at the statewide election take effect. (Since Prop 65 did not pass, the issue was moot.)
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
