June 11, 2018 by chandan.kumar
(Source: BallotPedia) Proposition 70 would have required a one-time two-thirds vote in each chamber of the California State Legislature to use revenue from the State Air Resources Board’s auctioning or sale of greenhouse gas emissions allowances under the state’s cap-and-trade program. To make sure no revenue was spent without the two-thirds vote, the measure would have placed all revenue from the cap-and-trade program in a Greenhouse Gas Reduction Reserve Fund beginning on January 1, 2024. The vote would have taken place anytime on or after January 1, 2024. Revenue would have been collected in this reserve fund until the one-time two-thirds vote occurred. If legislators failed to secure a two-thirds vote, revenue would have kept collecting in the reserve fund and the state would be unable to spend the revenue. Between January 1, 2024, and the passage of the spending bill, the measure would have also suspended a sales tax exemption for manufacturers, increasing tax revenue about $260 million per year. If legislators succeeded at securing a two-thirds vote, revenue would have begun to fill the non-reserve Greenhouse Gas Reduction Fund, which requires a simple majority vote to use money from. Read full article….