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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Gov. Gavin Newsom’s revised state budget tackles a total deficit of $45 billion, including cuts made earlier this year. The governor is proposing to spread the pain widely, with cuts to programs ranging from healthcare and scholarships for the middle class to climate change initiatives he supports. Scott, Marisa and Guy hash out the winners and losers in the May Revise budget.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"slug": "california-could-save-millions-by-closing-more-prisons-so-why-is-newsom-holding-back",
"title": "California Could Save Millions by Closing More Prisons. So Why Is Newsom Holding Back?",
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"content": "\u003cp>Gov. \u003ca href=\"https://calmatters.org/tag/gavin-newsom/\">Gavin Newsom\u003c/a> faces a huge deficit this spring, and he has one especially big money-saving option that he’s not using.\u003c/p>\n\u003cp>California’s rapidly falling inmate population could allow Newsom to close as many as \u003ca href=\"https://calmatters.org/justice/2023/02/how-many-prisons-does-california-need/\">five more prisons\u003c/a>, analysts say, saving $1 billion a year at a moment when he’s pulling from reserves to bring the \u003ca href=\"https://calmatters.org/tag/california-budget/\">state budget\u003c/a> into the black.\u003c/p>\n\u003cp>Instead, Newsom wants to take a more cautious approach to trimming prison beds. His new budget proposal calls on the corrections department to close 46 housing blocks inside 13 state prisons.\u003c/p>\n\u003cp>Prison yard closures save money and decrease the need for staffing, but not to the extent of a prison shutdown. Newsom’s proposal would save about $80 million.\u003c/p>\n\u003cp>Saying his administration had been “scrutinizing” the prisons budget, Newsom said “We’re mindful of the direction we’re going as it relates to public safety.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>At the inmate population’s peak in 2006, California locked up 165,000 people in state prisons. Today, after a decade of sentencing changes, federal court intervention and a surge of releases tied to COVID-19, California’s prisons house about 93,000 people.\u003c/p>\n\u003cp>Because of that trend, Newsom has already moved to close four prisons over the course of his administration. He projects that those shutdowns will save the state $3.4 billion by 2027.\u003c/p>\n\u003cp>He suggested on Friday that the forces fighting prison closures — labor unions representing prison employees, the communities dependent on prison jobs, legislation and litigation intended to slow or stop the closures — forced him to take smaller steps than shuttering entire facilities while he crafted his plan to close a projected \u003ca href=\"https://calmatters.org/politics/2024/05/california-budget-deficit-newsom-may-proposal/\">$27.6 billion deficit\u003c/a>.\u003c/p>\n\u003cp>“Prison housing unit deactivations can happen much sooner than prison closures and provide us more flexibility,” Newsom said. “Legislative leaders have asked me, are we considering collectively reducing the larger footprint in the state? The answer is yes.\u003c/p>\n\u003cp>“But we want to do it in a pragmatic and thoughtful way, we want to be mindful of labor concerns and community concerns, we want to be mindful of trends and we want to be mindful of the unknown, meaning there are proposals to roll back some of our criminal justice reforms that could have significant impact on the census and population.”\u003c/p>\n\u003ch2>California cities fight prison closures\u003c/h2>\n\u003cp>So far, Newsom closed the Deuel Vocational Institution in Tracy in 2021 and the California Correctional Center in Susanville in 2023. He ended a lease with a privately run prison called the California City Correctional Facility, and the corrections department is shutting down Chuckwalla Valley State Prison near the Arizona border.\u003c/p>\n\u003cp>Newsom at Friday’s budget press conference said he would accelerate the proposed March 2025 closure of Chuckwalla prison in Blythe to November, although his office hasn’t yet provided details on how much money that would save the state.\u003c/p>\n\u003cp>That news surprised leaders in Blythe, where city officials had attempted to \u003ca href=\"https://calmatters.org/justice/2023/05/california-state-prison-closure/\">save the prison\u003c/a> as one of the community’s major employers.\u003c/p>\n\u003cp>“This news is disheartening to say the least,” said Blythe Interim City Manager Mallory Crecelius. “Expediting the closure was not discussed with the city prior to it being included in the May (revised budget), and we learned about it with everyone else. Our hearts are heavy for the employees and inmates at (Chuckwalla Valley State Prison) whose lives will be directly impacted as this prison is shuttered.”\u003c/p>\n\u003cp>Because of the declining inmate headcount, California can close \u003ca href=\"https://calmatters.org/justice/2023/05/california-state-prison-closure/\">up to five more of its 33 prisons\u003c/a> and eight yards within operating prisons while still complying with a federal court order that caps the system’s capacity, the Legislative Analyst’s Office found last year. The report estimated the potential savings at $1 billion.\u003c/p>\n\u003cp>The \u003ca href=\"https://calmatters.org/justice/2024/01/california-prison-cost-per-inmate/\">costs of incarcerating prisoners\u003c/a>, meanwhile, is more than ever, rising to $132,860 per inmate.\u003c/p>\n\u003cp>Those numbers have prompted Democratic lawmakers over the past several years to press for more closures, particularly as they try to protect social services from budget cuts or to put money into inmate rehabilitation programs.\u003c/p>\n\u003cp>“If the people you’re serving in the department continues to go down, why is the cost going up?” Democratic Assemblymeber James Ramos of San Bernardino asked corrections department officials at an April budget hearing.\u003c/p>\n\u003ch2>Prison union sees safety risks in closures\u003c/h2>\n\u003cp>Amber-Rose Howard, executive director of Californians United for a Responsible Budget, which advocates for reducing the number of prisons and cutting the prison population, said Newsom’s proposal to close yards instead of whole prisons misses an opportunity for bigger savings.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11985798,news_11985798,news_11981977\"]“The truth is, it doesn’t go far enough,” Howard said. “When only a single yard is closed, then that means that there’s still tens of millions of dollars being spent on operational costs (and) administrative staffing.”\u003c/p>\n\u003cp>She noted that the state still has 15,000 empty prison beds.\u003c/p>\n\u003cp>“These yard deactivation will save $80 million annually,” she said, “and that’s not even equal to the cost savings of one prison closing.”\u003c/p>\n\u003cp>Newsom has previously said he wanted to maintain some capacity in the prisons to provide more space for rehabilitation efforts.\u003c/p>\n\u003cp>The California Correctional Peace Officers Association, the union representing prison guards, has argued that shuttering prisons puts guards and inmates in danger. It’s a heavyweight in the Capitol, and it has supported Newsom. It contributed $1.75 million to help \u003ca href=\"https://www.sacbee.com/news/politics-government/the-state-worker/article253144638.html\">Newsom defeat a recall campaign\u003c/a> in 2021, and it gave $1 million to back \u003ca href=\"https://calmatters.org/health/mental-health/2024/03/proposition-1-gavin-newsom-2/\">Newsom’s mental health ballot measure\u003c/a> that voters approved in March.\u003c/p>\n\u003cp>Writing in opposition to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2178\">a bill that would limit the number of empty beds\u003c/a> the prison system can maintain, the union said prisons are still holding more inmates than they were designed to.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“Higher densities of inmates pose substantial risks to CCPOA’s membership, as well as other staff and inmates. The denser the population, the greater the risk of assaults and other acts of violence,” the union wrote.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Gov. \u003ca href=\"https://calmatters.org/tag/gavin-newsom/\">Gavin Newsom\u003c/a> faces a huge deficit this spring, and he has one especially big money-saving option that he’s not using.\u003c/p>\n\u003cp>California’s rapidly falling inmate population could allow Newsom to close as many as \u003ca href=\"https://calmatters.org/justice/2023/02/how-many-prisons-does-california-need/\">five more prisons\u003c/a>, analysts say, saving $1 billion a year at a moment when he’s pulling from reserves to bring the \u003ca href=\"https://calmatters.org/tag/california-budget/\">state budget\u003c/a> into the black.\u003c/p>\n\u003cp>Instead, Newsom wants to take a more cautious approach to trimming prison beds. His new budget proposal calls on the corrections department to close 46 housing blocks inside 13 state prisons.\u003c/p>\n\u003cp>Prison yard closures save money and decrease the need for staffing, but not to the extent of a prison shutdown. Newsom’s proposal would save about $80 million.\u003c/p>\n\u003cp>Saying his administration had been “scrutinizing” the prisons budget, Newsom said “We’re mindful of the direction we’re going as it relates to public safety.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>At the inmate population’s peak in 2006, California locked up 165,000 people in state prisons. Today, after a decade of sentencing changes, federal court intervention and a surge of releases tied to COVID-19, California’s prisons house about 93,000 people.\u003c/p>\n\u003cp>Because of that trend, Newsom has already moved to close four prisons over the course of his administration. He projects that those shutdowns will save the state $3.4 billion by 2027.\u003c/p>\n\u003cp>He suggested on Friday that the forces fighting prison closures — labor unions representing prison employees, the communities dependent on prison jobs, legislation and litigation intended to slow or stop the closures — forced him to take smaller steps than shuttering entire facilities while he crafted his plan to close a projected \u003ca href=\"https://calmatters.org/politics/2024/05/california-budget-deficit-newsom-may-proposal/\">$27.6 billion deficit\u003c/a>.\u003c/p>\n\u003cp>“Prison housing unit deactivations can happen much sooner than prison closures and provide us more flexibility,” Newsom said. “Legislative leaders have asked me, are we considering collectively reducing the larger footprint in the state? The answer is yes.\u003c/p>\n\u003cp>“But we want to do it in a pragmatic and thoughtful way, we want to be mindful of labor concerns and community concerns, we want to be mindful of trends and we want to be mindful of the unknown, meaning there are proposals to roll back some of our criminal justice reforms that could have significant impact on the census and population.”\u003c/p>\n\u003ch2>California cities fight prison closures\u003c/h2>\n\u003cp>So far, Newsom closed the Deuel Vocational Institution in Tracy in 2021 and the California Correctional Center in Susanville in 2023. He ended a lease with a privately run prison called the California City Correctional Facility, and the corrections department is shutting down Chuckwalla Valley State Prison near the Arizona border.\u003c/p>\n\u003cp>Newsom at Friday’s budget press conference said he would accelerate the proposed March 2025 closure of Chuckwalla prison in Blythe to November, although his office hasn’t yet provided details on how much money that would save the state.\u003c/p>\n\u003cp>That news surprised leaders in Blythe, where city officials had attempted to \u003ca href=\"https://calmatters.org/justice/2023/05/california-state-prison-closure/\">save the prison\u003c/a> as one of the community’s major employers.\u003c/p>\n\u003cp>“This news is disheartening to say the least,” said Blythe Interim City Manager Mallory Crecelius. “Expediting the closure was not discussed with the city prior to it being included in the May (revised budget), and we learned about it with everyone else. Our hearts are heavy for the employees and inmates at (Chuckwalla Valley State Prison) whose lives will be directly impacted as this prison is shuttered.”\u003c/p>\n\u003cp>Because of the declining inmate headcount, California can close \u003ca href=\"https://calmatters.org/justice/2023/05/california-state-prison-closure/\">up to five more of its 33 prisons\u003c/a> and eight yards within operating prisons while still complying with a federal court order that caps the system’s capacity, the Legislative Analyst’s Office found last year. The report estimated the potential savings at $1 billion.\u003c/p>\n\u003cp>The \u003ca href=\"https://calmatters.org/justice/2024/01/california-prison-cost-per-inmate/\">costs of incarcerating prisoners\u003c/a>, meanwhile, is more than ever, rising to $132,860 per inmate.\u003c/p>\n\u003cp>Those numbers have prompted Democratic lawmakers over the past several years to press for more closures, particularly as they try to protect social services from budget cuts or to put money into inmate rehabilitation programs.\u003c/p>\n\u003cp>“If the people you’re serving in the department continues to go down, why is the cost going up?” Democratic Assemblymeber James Ramos of San Bernardino asked corrections department officials at an April budget hearing.\u003c/p>\n\u003ch2>Prison union sees safety risks in closures\u003c/h2>\n\u003cp>Amber-Rose Howard, executive director of Californians United for a Responsible Budget, which advocates for reducing the number of prisons and cutting the prison population, said Newsom’s proposal to close yards instead of whole prisons misses an opportunity for bigger savings.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“The truth is, it doesn’t go far enough,” Howard said. “When only a single yard is closed, then that means that there’s still tens of millions of dollars being spent on operational costs (and) administrative staffing.”\u003c/p>\n\u003cp>She noted that the state still has 15,000 empty prison beds.\u003c/p>\n\u003cp>“These yard deactivation will save $80 million annually,” she said, “and that’s not even equal to the cost savings of one prison closing.”\u003c/p>\n\u003cp>Newsom has previously said he wanted to maintain some capacity in the prisons to provide more space for rehabilitation efforts.\u003c/p>\n\u003cp>The California Correctional Peace Officers Association, the union representing prison guards, has argued that shuttering prisons puts guards and inmates in danger. It’s a heavyweight in the Capitol, and it has supported Newsom. It contributed $1.75 million to help \u003ca href=\"https://www.sacbee.com/news/politics-government/the-state-worker/article253144638.html\">Newsom defeat a recall campaign\u003c/a> in 2021, and it gave $1 million to back \u003ca href=\"https://calmatters.org/health/mental-health/2024/03/proposition-1-gavin-newsom-2/\">Newsom’s mental health ballot measure\u003c/a> that voters approved in March.\u003c/p>\n\u003cp>Writing in opposition to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2178\">a bill that would limit the number of empty beds\u003c/a> the prison system can maintain, the union said prisons are still holding more inmates than they were designed to.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“Higher densities of inmates pose substantial risks to CCPOA’s membership, as well as other staff and inmates. The denser the population, the greater the risk of assaults and other acts of violence,” the union wrote.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>California has \u003ca href=\"https://apnews.com/article/california-budget-deficit-gov-gavin-newsom-8f502d57d00d551c0b6b6331367f7a25\">a huge budget problem\u003c/a> that could force thorny decisions from Democratic leaders who enjoyed a more than $100 billion surplus just three years ago.\u003c/p>\n\u003cp>This is the second year in a row the nation’s most populous state is facing a multibillion-dollar shortfall. State revenues have continued to fall amid increasing inflation and a slowdown in the state’s usually robust technology industry.\u003c/p>\n\u003cp>Democratic Gov. Gavin Newsom on Friday announced his plan to address the deficit in the state’s budget. The release of his plan kicks off a budget negotiation marathon with Democratic lawmakers, who hold supermajorities in both chambers.\u003c/p>\n\u003cp>Newsom and lawmakers have until June 15 to pass a budget, or lawmakers don’t get paid.\u003c/p>\n\u003ch2>How big is the budget?\u003c/h2>\n\u003cp>Newsom proposed a $288 billion spending plan on Friday for the fiscal year that starts July 1. That is well below the nearly \u003ca href=\"https://apnews.com/article/california-state-budget-2023-2db8442a1d7c0ecc5b6827207c1dad03\">$311 billion budget\u003c/a> he signed into law last year. But it is still by far the largest of any state in the country. New York recently passed a $237 billion budget, and Texas and Florida spend far less annually.\u003c/p>\n\u003ch2>What about the deficit?\u003c/h2>\n\u003cp>It’s complicated. Newsom announced on Friday \u003ca href=\"https://apnews.com/article/california-budget-deficit-gov-gavin-newsom-8f502d57d00d551c0b6b6331367f7a25\">a $26.7 billion deficit\u003c/a>, but it’s really closer to $45 billion. That’s because Newsom didn’t include roughly \u003ca href=\"https://apnews.com/article/california-budget-deficit-7f550b21eb13034077bc97e447e30b66\">$17.3 billion worth of actions\u003c/a> he and lawmakers already agreed on. Those included a cut of $3.6 billion in primarily one-time funding to some school, welfare and climate programs. The plan also delays and defers about $5.2 billion in spending for various programs, including $1 billion to fund rail and public transit systems.\u003c/p>\n\u003ch2>Why does the deficit matter?\u003c/h2>\n\u003cp>California’s constitution requires lawmakers and the governor to balance the budget — meaning the state can’t spend more money than it has. That means they have to either find more money by raising taxes, which Newsom doesn’t want to do, or find ways to cut, shift or delay spending. Newsom’s proposal focuses mostly on cuts, but it will also dip into reserve funding.\u003c/p>\n\u003ch2>What are those cuts?\u003c/h2>\n\u003cp>Newsom proposed cuts across 260 state programs. Here are some of the highlights:\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Eliminating 10,000 vacant state worker jobs for a saving of $762 million. Newsom didn’t immediately provide a list of all the jobs.\u003c/p>\n\u003cp>Clawing back $6.7 billion previously set aside to \u003ca href=\"https://apnews.com/article/california-medicaid-rates-gavin-newsom-optometrists-ca1d0fac1f662de24eca5289ff8885c1\">pay doctors more\u003c/a> to see poor patients and immigrants.\u003c/p>\n\u003cp>Shaving off nearly 8% in operating costs to almost all state agencies through actions like getting rid of landlines in state offices and evaluating printing needs.\u003c/p>\n\u003cp>Cutting $2 billion from broadband initiatives to pursue cheaper options\u003c/p>\n\u003cp>Closing housing units with 4,600 beds across 13 state prisons to save $81 million.\u003c/p>\n\u003cp>Reducing funding for homelessness and housing initiatives by nearly $1.2 billion, including $474 million from an anti-foreclosure program to preserve existing affordable housing.\u003c/p>\n\u003cp>Reducing $500 million in water storage funding. He didn’t offer specifics on how that would be applied.\u003c/p>\n\u003cp>Shutting down an in-home service care program that serves 14,000 low-income, undocumented immigrants with disabilities for a savings of $94.7 million.\u003c/p>\n\u003cp>Cutting roughly $2 billion from six education programs, including $550 million from an initiative to upgrade preschool and kindergarten facilities and $510 million in scholarships for middle class college students pursuing a teaching credential.\u003c/p>\n\u003cp>Eliminating $352.5 million in funding for state and local public health and $189.4 million from mental health services fund.\u003c/p>\n\u003ch2>How about tax increases?\u003c/h2>\n\u003cp>Newsom has repeatedly said he could balance the budget without raising taxes. But his proposal calls for the suspension of the widely used net operating loss tax deduction for businesses the following fiscal year, which some are seeing as a tax increase.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He is also increasing the tax on managed care organizations, the private companies that contract with the state to provide Medicaid benefits.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California has \u003ca href=\"https://apnews.com/article/california-budget-deficit-gov-gavin-newsom-8f502d57d00d551c0b6b6331367f7a25\">a huge budget problem\u003c/a> that could force thorny decisions from Democratic leaders who enjoyed a more than $100 billion surplus just three years ago.\u003c/p>\n\u003cp>This is the second year in a row the nation’s most populous state is facing a multibillion-dollar shortfall. State revenues have continued to fall amid increasing inflation and a slowdown in the state’s usually robust technology industry.\u003c/p>\n\u003cp>Democratic Gov. Gavin Newsom on Friday announced his plan to address the deficit in the state’s budget. The release of his plan kicks off a budget negotiation marathon with Democratic lawmakers, who hold supermajorities in both chambers.\u003c/p>\n\u003cp>Newsom and lawmakers have until June 15 to pass a budget, or lawmakers don’t get paid.\u003c/p>\n\u003ch2>How big is the budget?\u003c/h2>\n\u003cp>Newsom proposed a $288 billion spending plan on Friday for the fiscal year that starts July 1. That is well below the nearly \u003ca href=\"https://apnews.com/article/california-state-budget-2023-2db8442a1d7c0ecc5b6827207c1dad03\">$311 billion budget\u003c/a> he signed into law last year. But it is still by far the largest of any state in the country. New York recently passed a $237 billion budget, and Texas and Florida spend far less annually.\u003c/p>\n\u003ch2>What about the deficit?\u003c/h2>\n\u003cp>It’s complicated. Newsom announced on Friday \u003ca href=\"https://apnews.com/article/california-budget-deficit-gov-gavin-newsom-8f502d57d00d551c0b6b6331367f7a25\">a $26.7 billion deficit\u003c/a>, but it’s really closer to $45 billion. That’s because Newsom didn’t include roughly \u003ca href=\"https://apnews.com/article/california-budget-deficit-7f550b21eb13034077bc97e447e30b66\">$17.3 billion worth of actions\u003c/a> he and lawmakers already agreed on. Those included a cut of $3.6 billion in primarily one-time funding to some school, welfare and climate programs. The plan also delays and defers about $5.2 billion in spending for various programs, including $1 billion to fund rail and public transit systems.\u003c/p>\n\u003ch2>Why does the deficit matter?\u003c/h2>\n\u003cp>California’s constitution requires lawmakers and the governor to balance the budget — meaning the state can’t spend more money than it has. That means they have to either find more money by raising taxes, which Newsom doesn’t want to do, or find ways to cut, shift or delay spending. Newsom’s proposal focuses mostly on cuts, but it will also dip into reserve funding.\u003c/p>\n\u003ch2>What are those cuts?\u003c/h2>\n\u003cp>Newsom proposed cuts across 260 state programs. Here are some of the highlights:\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Eliminating 10,000 vacant state worker jobs for a saving of $762 million. Newsom didn’t immediately provide a list of all the jobs.\u003c/p>\n\u003cp>Clawing back $6.7 billion previously set aside to \u003ca href=\"https://apnews.com/article/california-medicaid-rates-gavin-newsom-optometrists-ca1d0fac1f662de24eca5289ff8885c1\">pay doctors more\u003c/a> to see poor patients and immigrants.\u003c/p>\n\u003cp>Shaving off nearly 8% in operating costs to almost all state agencies through actions like getting rid of landlines in state offices and evaluating printing needs.\u003c/p>\n\u003cp>Cutting $2 billion from broadband initiatives to pursue cheaper options\u003c/p>\n\u003cp>Closing housing units with 4,600 beds across 13 state prisons to save $81 million.\u003c/p>\n\u003cp>Reducing funding for homelessness and housing initiatives by nearly $1.2 billion, including $474 million from an anti-foreclosure program to preserve existing affordable housing.\u003c/p>\n\u003cp>Reducing $500 million in water storage funding. He didn’t offer specifics on how that would be applied.\u003c/p>\n\u003cp>Shutting down an in-home service care program that serves 14,000 low-income, undocumented immigrants with disabilities for a savings of $94.7 million.\u003c/p>\n\u003cp>Cutting roughly $2 billion from six education programs, including $550 million from an initiative to upgrade preschool and kindergarten facilities and $510 million in scholarships for middle class college students pursuing a teaching credential.\u003c/p>\n\u003cp>Eliminating $352.5 million in funding for state and local public health and $189.4 million from mental health services fund.\u003c/p>\n\u003ch2>How about tax increases?\u003c/h2>\n\u003cp>Newsom has repeatedly said he could balance the budget without raising taxes. But his proposal calls for the suspension of the widely used net operating loss tax deduction for businesses the following fiscal year, which some are seeing as a tax increase.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He is also increasing the tax on managed care organizations, the private companies that contract with the state to provide Medicaid benefits.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>California’s top court had tough questions for both sides on Wednesday morning about whether voters should be allowed to weigh in on a sweeping ballot initiative that would make it \u003ca href=\"https://www.kqed.org/news/11985267/why-cities-call-this-ballot-measure-an-existential-threat\">more difficult for state and local governments to raise taxes\u003c/a>.\u003c/p>\n\u003cp>The ballot measure, sponsored by business executives and anti-tax groups, would require voters to approve all state and local tax increases — including retroactively applying to any tax approved since January 2022. It also would require the Legislature or local elected leaders to vote to approve all government fees, including library fines and park entrance charges. Dubbed the “Taxpayer Protection Act,” it’s being bankrolled by the California Business Roundtable, a group made up of top executives.\u003c/p>\n\u003cp>Democratic state leaders, including Gov. Gavin Newsom, sued to have the measure taken off the November ballot, claiming that it amounts to a full revision of the state Constitution, not just an amendment. Revisions must be placed on the ballot by either a constitutional convention or a supermajority vote of the state Legislature; this measure was placed on the ballot through the signature-gathering process.\u003c/p>\n\u003cp>Justices seemed skeptical at times of both sides’ arguments during Wednesday’s proceedings at the Supreme Court.\u003c/p>\n\u003cp>Opponents, represented in court by Oakland-based attorney Margaret R. Prinzing, argued that the initiative is already hampering state and local governments’ ability to plan because they are crafting budget proposals without knowing whether dozens of taxes approved since 2022 would have to be delayed and put back before voters.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Prinzing said the proposal clearly shifts power from elected officials to the electorate, making it too far-reaching for the normal initiative process.\u003c/p>\n\u003cp>“What qualifies a revision as a revision is that it’s a fundamental change in the structure of government and its powers. And that’s what’s happening here,” Prinzing said, noting that the court has previously described the power to tax as “the most vital and essential attribute of government, without which government cannot function.\u003c/p>\n\u003cp>“And what we would be talking about here with this measure is the Legislature would no longer have that power. It would instead be delayed through the voter approval requirement and would be in the hands of a body that is not the Legislature,” she said.\u003c/p>\n\u003cp>[aside label='More Politics Coverage' tag='politics']The court pressed Prinzing on why it should strip the measure from the ballot entirely, limiting voters’ ability to weigh in, instead of waiting to see whether it passes and then staying the law while the court decides its legality.\u003c/p>\n\u003cp>Justice Goodwin Liu wondered whether the proposal went so far as to be a constitutional revision, given the state’s long history of sharing the power to tax between elected officials and voters. Prinzing said it’s because the initiative would take away the Legislature’s power to levy taxes “and turn it into a power to propose.\u003c/p>\n\u003cp>“The voters and the Legislature obviously operate, occupy different spaces and in the area of taxation,” she said. “This measure would obliterate that distinction when it comes to taxes…. So it’s a revision, and it’s a revision that would occur in ways that would endanger the government’s ability to provide essential government services.”\u003c/p>\n\u003cp>Thomas Hiltachk, the Sacramento-based lawyer representing the initiative sponsors, pushed back. When pressed by Liu as to whether the ballot measure shifts California from a republican form of government, where elected officials are granted power, to a direct democracy, Hiltachk argued that the state has never had a purely republican form of government.\u003c/p>\n\u003cp>“Because our Constitution, since its inception, has stated that all political power is inherent in the people and has stated that the people have the power to reform and alter their government whenever they decide it needs reform,” he said.\u003c/p>\n\u003cp>Hiltachk also noted that the power to approve taxes has been shared between the electorate and the Legislature “at least since 1911 and the enactment of the initiative referendum power.\u003c/p>\n\u003cp>“It’s a shared power between the people and the Legislature, so there is no unilateral power of the Legislature to impose taxes,” he added.\u003c/p>\n\u003cp>Hiltachk was pressed on whether delaying a tax proposal to get voter approval could tie the government’s hands in an emergency situation like the COVID-19 pandemic. And Liu pushed him on the provision that requires all fees to be approved by lawmakers, musing that it would strip power from the executive branch and potentially expand the referendum power.\u003c/p>\n\u003cp>“So if a local senior center wants to charge a fee, right, for rental of its facilities, that has to be approved now by the city council, right, in order to do that?” Liu asked. “And it is thus subject to the referendum power. If you want to impose a library fine, and you don’t give individual due process to the person subject to the fine, that too right can be subject to legislative approval? I mean, this is vast.”\u003c/p>\n\u003cp>Hiltachk said the measure would simply return California to a system that existed a century ago.\u003c/p>\n\u003cp>“What we have evolved into is an administrative state that has far too much power among non-elected bureaucrats who no one knows their name,” he said, arguing that the Legislature and local elected bodies should have to weigh in. “That’s accountability. That’s not a revision, and that does not impair essential government functions.”\u003c/p>\n\u003cp>The court will decide by the end of June whether to allow the measure to stay on the November ballot. If it does appear before voters, Democrats and their allies will not only campaign against the initiative but also push two of their own aimed at weakening the Business Roundtable measure’s impacts.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>One would require that this type of ballot measure pass by a two-thirds majority to take effect instead of the current majority required. Another would make it easier to pass local tax and bond measures related to housing and infrastructure, requiring only a 55% vote instead of two-thirds.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California’s top court had tough questions for both sides on Wednesday morning about whether voters should be allowed to weigh in on a sweeping ballot initiative that would make it \u003ca href=\"https://www.kqed.org/news/11985267/why-cities-call-this-ballot-measure-an-existential-threat\">more difficult for state and local governments to raise taxes\u003c/a>.\u003c/p>\n\u003cp>The ballot measure, sponsored by business executives and anti-tax groups, would require voters to approve all state and local tax increases — including retroactively applying to any tax approved since January 2022. It also would require the Legislature or local elected leaders to vote to approve all government fees, including library fines and park entrance charges. Dubbed the “Taxpayer Protection Act,” it’s being bankrolled by the California Business Roundtable, a group made up of top executives.\u003c/p>\n\u003cp>Democratic state leaders, including Gov. Gavin Newsom, sued to have the measure taken off the November ballot, claiming that it amounts to a full revision of the state Constitution, not just an amendment. Revisions must be placed on the ballot by either a constitutional convention or a supermajority vote of the state Legislature; this measure was placed on the ballot through the signature-gathering process.\u003c/p>\n\u003cp>Justices seemed skeptical at times of both sides’ arguments during Wednesday’s proceedings at the Supreme Court.\u003c/p>\n\u003cp>Opponents, represented in court by Oakland-based attorney Margaret R. Prinzing, argued that the initiative is already hampering state and local governments’ ability to plan because they are crafting budget proposals without knowing whether dozens of taxes approved since 2022 would have to be delayed and put back before voters.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The court pressed Prinzing on why it should strip the measure from the ballot entirely, limiting voters’ ability to weigh in, instead of waiting to see whether it passes and then staying the law while the court decides its legality.\u003c/p>\n\u003cp>Justice Goodwin Liu wondered whether the proposal went so far as to be a constitutional revision, given the state’s long history of sharing the power to tax between elected officials and voters. Prinzing said it’s because the initiative would take away the Legislature’s power to levy taxes “and turn it into a power to propose.\u003c/p>\n\u003cp>“The voters and the Legislature obviously operate, occupy different spaces and in the area of taxation,” she said. “This measure would obliterate that distinction when it comes to taxes…. So it’s a revision, and it’s a revision that would occur in ways that would endanger the government’s ability to provide essential government services.”\u003c/p>\n\u003cp>Thomas Hiltachk, the Sacramento-based lawyer representing the initiative sponsors, pushed back. When pressed by Liu as to whether the ballot measure shifts California from a republican form of government, where elected officials are granted power, to a direct democracy, Hiltachk argued that the state has never had a purely republican form of government.\u003c/p>\n\u003cp>“Because our Constitution, since its inception, has stated that all political power is inherent in the people and has stated that the people have the power to reform and alter their government whenever they decide it needs reform,” he said.\u003c/p>\n\u003cp>Hiltachk also noted that the power to approve taxes has been shared between the electorate and the Legislature “at least since 1911 and the enactment of the initiative referendum power.\u003c/p>\n\u003cp>“It’s a shared power between the people and the Legislature, so there is no unilateral power of the Legislature to impose taxes,” he added.\u003c/p>\n\u003cp>Hiltachk was pressed on whether delaying a tax proposal to get voter approval could tie the government’s hands in an emergency situation like the COVID-19 pandemic. And Liu pushed him on the provision that requires all fees to be approved by lawmakers, musing that it would strip power from the executive branch and potentially expand the referendum power.\u003c/p>\n\u003cp>“So if a local senior center wants to charge a fee, right, for rental of its facilities, that has to be approved now by the city council, right, in order to do that?” Liu asked. “And it is thus subject to the referendum power. If you want to impose a library fine, and you don’t give individual due process to the person subject to the fine, that too right can be subject to legislative approval? I mean, this is vast.”\u003c/p>\n\u003cp>Hiltachk said the measure would simply return California to a system that existed a century ago.\u003c/p>\n\u003cp>“What we have evolved into is an administrative state that has far too much power among non-elected bureaucrats who no one knows their name,” he said, arguing that the Legislature and local elected bodies should have to weigh in. “That’s accountability. That’s not a revision, and that does not impair essential government functions.”\u003c/p>\n\u003cp>The court will decide by the end of June whether to allow the measure to stay on the November ballot. If it does appear before voters, Democrats and their allies will not only campaign against the initiative but also push two of their own aimed at weakening the Business Roundtable measure’s impacts.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>One would require that this type of ballot measure pass by a two-thirds majority to take effect instead of the current majority required. Another would make it easier to pass local tax and bond measures related to housing and infrastructure, requiring only a 55% vote instead of two-thirds.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Who is the flesh-and-blood landlord with a city-spanning portfolio of apartments concealed behind an obscurely named limited liability company? Who is the proprietor of a local restaurant, hotel or regional car wash chain shrouded beneath a corporate veil?\u003c/p>\n\u003cp>Who actually owns what in California?\u003c/p>\n\u003cp>For three years, a coalition of anti-eviction advocates, unions, legal aid organizations, affordable housing boosters, workers rights groups and pro-transparency activists have been demanding that the state make it easier to answer those questions.\u003c/p>\n\u003cp>And for three years, those efforts have failed in the Legislature.\u003c/p>\n\u003cp>Supporters of this year’s version, \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1201?slug=CA_202320240SB1201\">Senate Bill 1201,\u003c/a> authored by \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/maria-elena-durazo-165445\">Sen. María Elena Durazo\u003c/a>, a Los Angeles Democrat, now worry that their fourth effort will soon meet a similar fate.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Businesses operating in California must regularly submit documents to the Secretary of State that list the company’s name and address, along with those of its top managers and anyone responsible for receiving legal filings on the company’s behalf. That information is publicly available on the \u003ca href=\"https://bizfileonline.sos.ca.gov/search/business\">Secretary of State’s website\u003c/a>.\u003c/p>\n\u003cp>Durazo’s bill would add an additional disclosure requirement: The names and home or business addresses of “beneficial owners” — defined as anyone who “exercises substantial control” or owns at least 25% of a company.\u003c/p>\n\u003cp>[aside postID=\"news_11983000,news_11945744,news_11984610\" label=\"Related Stories\"]As Durazo \u003ca href=\"https://digitaldemocracy.calmatters.org/hearings/257789?t=1504&f=9894c3d5281deb91c62d4cf1b0cd7321\">explained at a recent Senate committee hearing\u003c/a>, the bill is “simply adding one line on the forms that anybody fills out…It’s not asking for any more.”\u003c/p>\n\u003cp>Yet last week, the Senate Appropriations Committee, tasked with putting a fiscal price tag on pending legislation, said implementing the bill would cost the state $9.3 million in its first year and nearly $3 million every year after that. The majority of those ongoing expenses would go toward paying the estimated 24 state employees that Secretary of State analysts say are needed to make the bill work. That would represent \u003ca href=\"https://admin.cdn.sos.ca.gov/reports/2024/bus-filing-processing-time-report-march-2024.pdf\">roughly 10% of the agency’s workforce \u003c/a>that now processes business filings.\u003c/p>\n\u003cp>Though $9 million is \u003ca href=\"https://calmatters.org/politics/capitol/2024/04/budget-deficit-california-deal/\">couch cushion change by California budgetary standards\u003c/a>, the bill’s supporters say the number mystifies them. For a 2020 bill requiring the Secretary of State to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB3075\">add a different question to the same form\u003c/a>, the fiscal estimate was a mere $561,000 in the first year and $79,000 thereafter.\u003c/p>\n\u003cp>“This is an example of a good governance bill that will fail because of bad governance,” said Jyotswaroop Bawa with the progressive nonprofit Rise Economy, which is sponsoring the bill. “By not collecting beneficial owner information, the Secretary of State’s office is allowing chaos to continue with impunity.”\u003c/p>\n\u003cp>Bawa and other supporters of the bill say publishing ownership information will make it easier for tenants, workers and regulators to track down scofflaw landlords and other business owners.\u003c/p>\n\u003cp>Opponents of the bill, which include state and local landlord groups, the California Association of Realtors and the California Chamber of Commerce, argue that it is already easy enough to contact a business and that disclosing the identities of individual owners would violate their privacy and enable harassment.\u003c/p>\n\u003ch3>The Secretary of State’s office refused to break down sky-high estimate\u003c/h3>\n\u003cp>Once a bill receives a big cost estimate, it’s put in a list known\u003ca href=\"https://calmatters.org/politics/2017/09/capitol-suspense-california-bills-vanish-almost-without-trace/\"> as the “suspense file.”\u003c/a> Then, in marathon sessions held twice a year, the Assembly and Senate appropriations committees rapidly tick through every bill on that list, passing some along and killing others without debate or a public vote. The first legislative culling of the year is set for mid-May.\u003c/p>\n\u003cp>With its seven-digit cost estimate, Bawa said she worries SB 1201 will be the latest victim of “death by price tag,” especially when the state is \u003ca href=\"https://calmatters.org/politics/capitol/2024/04/budget-deficit-california-deal/\">facing a multibillion-dollar deficit\u003c/a>. And it wouldn’t be the first time this idea has died a quiet procedural death.\u003c/p>\n\u003cp>In 2021, a bill that would have required companies to unveil their human owners when filing business records with the state \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1199\">didn’t get a hearing\u003c/a>. A \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billVotesClient.xhtml?bill_id=202120220AB889\">revived attempt\u003c/a> the next year failed in the Senate after a majority on a key committee \u003ca href=\"https://calmatters.org/digital-democracy/2024/04/california-democrats-no-votes/\">declined to cast a vote “yes” or “no” but simply abstained\u003c/a>. Last year, a third try succumbed to the suspense file after the bill was dinged with a $9 million cost estimate from the Secretary of State’s office.\u003c/p>\n\u003cp>In coming up with this year’s figure, the Senate \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/05/202320240SB1201_Senate-Appropriations.pdf\">committee’s fiscal analysis\u003c/a> said it got the estimates from the Secretary of State. Itemized totals include $3 million in “IT project costs” and more than $2 million in “mailing costs.”\u003c/p>\n\u003cp>The Secretary of State’s office refused to answer specific questions from CalMatters about the bill’s cost estimate but instead responded by email with an unsigned statement.\u003c/p>\n\u003cp>“The Office of the Secretary of State continues to be involved in deliberations and ongoing discussions with legislative staff related to SB 1201. In furtherance of this process, we must respectfully decline to publicly comment on the substantive or fiscal issues associated with the bill at this early point in the legislative process,” the statement said.\u003c/p>\n\u003cp>While the office “did not provide context” for its fiscal breakdown, the committee analysis says, the Secretary of State expressed more detailed concerns over last year’s version of the bill. Back then, the office warned that investigating and verifying the ownership information through a modified form would be costly.\u003c/p>\n\u003cp>The bill, as currently written, does not require the Secretary of State to perform that due diligence, which led an earlier Senate committee to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=202320240SB1201#\">raise concerns about the bill’s effectiveness.\u003c/a>\u003c/p>\n\u003ch3>‘We could do it for $200’\u003c/h3>\n\u003cp>Corporations and limited liability companies exist in part to ensure that investors in a company aren’t held directly legally responsible for the things that that company does or doesn’t do. If a company maintains unsafe conditions at a rental property, a tenant can sue the company itself, seeking damages from the corporate treasury but not from the business owner’s personal checking account.\u003c/p>\n\u003cp>Publicizing an owner’s name and address, then, doesn’t serve an obvious legal purpose, said Debra Carlton, a spokesperson for the California Apartment Association. Landlords can always be reached through the property management companies they employ. Lawsuits can always be served to a company’s \u003ca href=\"https://www.sos.ca.gov/business-programs/business-entities/service-process\">listed representative.\u003c/a>\u003c/p>\n\u003cp>“The point of the corporate veil is that you go after the corporation’s assets” in a lawsuit, said Carlton, but it doesn’t prevent landlords from getting sued. “You see lawsuits every day being brought against the industry.”\u003c/p>\n\u003cp>Matthew Silver, a lawyer who represents cities and counties in substandard housing cases, agreed that Durazo’s bill isn’t likely to make his work easier going after negligent landlords. It’s often quicker to serve court papers to a corporation or LLC than “an individual slumlord” who doesn’t have a paper trail or web presence, he said.\u003c/p>\n\u003cp>“There’s a path that leads you from the corporate name to the people who actually own it, ultimately, and we will find them and hold them responsible,” he said.\u003c/p>\n\u003cp>But there are times when it’s crucial to track down a human business owner quickly, long before matters end up at court, said Larry Brooks, who runs the residential lead prevention program for Alameda County.\u003c/p>\n\u003cp>He remembers a case in 2022 when twin toddlers were found living in an old apartment with flaking paint. Lead levels in their blood were so high the children were immediately hospitalized. The twins’ parents, undocumented immigrants, initially refused to put Brooks and his team in touch with the building’s property management company, fearing eviction or deportation, he said.\u003c/p>\n\u003cp>So Brooks began hunting on his own. He turned first to the county assessor’s office to find the property owner’s name, then plugged that name into the Secretary of State’s database. The corporate documents there only listed a street address. Brooks struggled to connect that address with a phone number or email address.\u003c/p>\n\u003cp>Finally, a county nurse persuaded the twins’ mother to share the phone number of a Sacramento-based property management company. That company put Brooks in touch with the owner, a corporation in Texas, he said. The entire process took two weeks.\u003c/p>\n\u003cp>“I wish that there were some state or federal law that required every corporate landlord to have a local contact,” said Brooks, who has also advised Human Impact Partners, a public health nonprofit that supports Durazo’s bill. “In a situation like with the twins, where the blood lead levels were so high they were life-threatening, and the kids had to be rushed to the hospital, you want to be able to call somebody immediately.”\u003c/p>\n\u003cp>Brooks said he couldn’t share additional information about the children or the landlord, citing medical privacy laws and pending litigation. CalMatters was unable to verify the details of the story independently.\u003c/p>\n\u003cp>Making it easier to find the name and address of a business owner would provide a treasure trove of data for tenant rights organizations, housing researchers and \u003ca href=\"https://www.latimes.com/opinion/story/2021-02-24/rental-housing-shell-companies-landlords\">investigative reporters\u003c/a>.\u003c/p>\n\u003cp>But it would also be a boon for would-be harassers and activists, said Carlton. “I can’t figure out what their true purpose is,” she said of the bill’s sponsors. “They want to shame people publicly, maybe.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>But Carlton was also puzzled by the $9 million cost estimate: “I almost felt like saying, ‘We could do it,’” she said. “We could do it for $200.”\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Who is the flesh-and-blood landlord with a city-spanning portfolio of apartments concealed behind an obscurely named limited liability company? Who is the proprietor of a local restaurant, hotel or regional car wash chain shrouded beneath a corporate veil?\u003c/p>\n\u003cp>Who actually owns what in California?\u003c/p>\n\u003cp>For three years, a coalition of anti-eviction advocates, unions, legal aid organizations, affordable housing boosters, workers rights groups and pro-transparency activists have been demanding that the state make it easier to answer those questions.\u003c/p>\n\u003cp>And for three years, those efforts have failed in the Legislature.\u003c/p>\n\u003cp>Supporters of this year’s version, \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1201?slug=CA_202320240SB1201\">Senate Bill 1201,\u003c/a> authored by \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/maria-elena-durazo-165445\">Sen. María Elena Durazo\u003c/a>, a Los Angeles Democrat, now worry that their fourth effort will soon meet a similar fate.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Businesses operating in California must regularly submit documents to the Secretary of State that list the company’s name and address, along with those of its top managers and anyone responsible for receiving legal filings on the company’s behalf. That information is publicly available on the \u003ca href=\"https://bizfileonline.sos.ca.gov/search/business\">Secretary of State’s website\u003c/a>.\u003c/p>\n\u003cp>Durazo’s bill would add an additional disclosure requirement: The names and home or business addresses of “beneficial owners” — defined as anyone who “exercises substantial control” or owns at least 25% of a company.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>As Durazo \u003ca href=\"https://digitaldemocracy.calmatters.org/hearings/257789?t=1504&f=9894c3d5281deb91c62d4cf1b0cd7321\">explained at a recent Senate committee hearing\u003c/a>, the bill is “simply adding one line on the forms that anybody fills out…It’s not asking for any more.”\u003c/p>\n\u003cp>Yet last week, the Senate Appropriations Committee, tasked with putting a fiscal price tag on pending legislation, said implementing the bill would cost the state $9.3 million in its first year and nearly $3 million every year after that. The majority of those ongoing expenses would go toward paying the estimated 24 state employees that Secretary of State analysts say are needed to make the bill work. That would represent \u003ca href=\"https://admin.cdn.sos.ca.gov/reports/2024/bus-filing-processing-time-report-march-2024.pdf\">roughly 10% of the agency’s workforce \u003c/a>that now processes business filings.\u003c/p>\n\u003cp>Though $9 million is \u003ca href=\"https://calmatters.org/politics/capitol/2024/04/budget-deficit-california-deal/\">couch cushion change by California budgetary standards\u003c/a>, the bill’s supporters say the number mystifies them. For a 2020 bill requiring the Secretary of State to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB3075\">add a different question to the same form\u003c/a>, the fiscal estimate was a mere $561,000 in the first year and $79,000 thereafter.\u003c/p>\n\u003cp>“This is an example of a good governance bill that will fail because of bad governance,” said Jyotswaroop Bawa with the progressive nonprofit Rise Economy, which is sponsoring the bill. “By not collecting beneficial owner information, the Secretary of State’s office is allowing chaos to continue with impunity.”\u003c/p>\n\u003cp>Bawa and other supporters of the bill say publishing ownership information will make it easier for tenants, workers and regulators to track down scofflaw landlords and other business owners.\u003c/p>\n\u003cp>Opponents of the bill, which include state and local landlord groups, the California Association of Realtors and the California Chamber of Commerce, argue that it is already easy enough to contact a business and that disclosing the identities of individual owners would violate their privacy and enable harassment.\u003c/p>\n\u003ch3>The Secretary of State’s office refused to break down sky-high estimate\u003c/h3>\n\u003cp>Once a bill receives a big cost estimate, it’s put in a list known\u003ca href=\"https://calmatters.org/politics/2017/09/capitol-suspense-california-bills-vanish-almost-without-trace/\"> as the “suspense file.”\u003c/a> Then, in marathon sessions held twice a year, the Assembly and Senate appropriations committees rapidly tick through every bill on that list, passing some along and killing others without debate or a public vote. The first legislative culling of the year is set for mid-May.\u003c/p>\n\u003cp>With its seven-digit cost estimate, Bawa said she worries SB 1201 will be the latest victim of “death by price tag,” especially when the state is \u003ca href=\"https://calmatters.org/politics/capitol/2024/04/budget-deficit-california-deal/\">facing a multibillion-dollar deficit\u003c/a>. And it wouldn’t be the first time this idea has died a quiet procedural death.\u003c/p>\n\u003cp>In 2021, a bill that would have required companies to unveil their human owners when filing business records with the state \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1199\">didn’t get a hearing\u003c/a>. A \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billVotesClient.xhtml?bill_id=202120220AB889\">revived attempt\u003c/a> the next year failed in the Senate after a majority on a key committee \u003ca href=\"https://calmatters.org/digital-democracy/2024/04/california-democrats-no-votes/\">declined to cast a vote “yes” or “no” but simply abstained\u003c/a>. Last year, a third try succumbed to the suspense file after the bill was dinged with a $9 million cost estimate from the Secretary of State’s office.\u003c/p>\n\u003cp>In coming up with this year’s figure, the Senate \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/05/202320240SB1201_Senate-Appropriations.pdf\">committee’s fiscal analysis\u003c/a> said it got the estimates from the Secretary of State. Itemized totals include $3 million in “IT project costs” and more than $2 million in “mailing costs.”\u003c/p>\n\u003cp>The Secretary of State’s office refused to answer specific questions from CalMatters about the bill’s cost estimate but instead responded by email with an unsigned statement.\u003c/p>\n\u003cp>“The Office of the Secretary of State continues to be involved in deliberations and ongoing discussions with legislative staff related to SB 1201. In furtherance of this process, we must respectfully decline to publicly comment on the substantive or fiscal issues associated with the bill at this early point in the legislative process,” the statement said.\u003c/p>\n\u003cp>While the office “did not provide context” for its fiscal breakdown, the committee analysis says, the Secretary of State expressed more detailed concerns over last year’s version of the bill. Back then, the office warned that investigating and verifying the ownership information through a modified form would be costly.\u003c/p>\n\u003cp>The bill, as currently written, does not require the Secretary of State to perform that due diligence, which led an earlier Senate committee to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=202320240SB1201#\">raise concerns about the bill’s effectiveness.\u003c/a>\u003c/p>\n\u003ch3>‘We could do it for $200’\u003c/h3>\n\u003cp>Corporations and limited liability companies exist in part to ensure that investors in a company aren’t held directly legally responsible for the things that that company does or doesn’t do. If a company maintains unsafe conditions at a rental property, a tenant can sue the company itself, seeking damages from the corporate treasury but not from the business owner’s personal checking account.\u003c/p>\n\u003cp>Publicizing an owner’s name and address, then, doesn’t serve an obvious legal purpose, said Debra Carlton, a spokesperson for the California Apartment Association. Landlords can always be reached through the property management companies they employ. Lawsuits can always be served to a company’s \u003ca href=\"https://www.sos.ca.gov/business-programs/business-entities/service-process\">listed representative.\u003c/a>\u003c/p>\n\u003cp>“The point of the corporate veil is that you go after the corporation’s assets” in a lawsuit, said Carlton, but it doesn’t prevent landlords from getting sued. “You see lawsuits every day being brought against the industry.”\u003c/p>\n\u003cp>Matthew Silver, a lawyer who represents cities and counties in substandard housing cases, agreed that Durazo’s bill isn’t likely to make his work easier going after negligent landlords. It’s often quicker to serve court papers to a corporation or LLC than “an individual slumlord” who doesn’t have a paper trail or web presence, he said.\u003c/p>\n\u003cp>“There’s a path that leads you from the corporate name to the people who actually own it, ultimately, and we will find them and hold them responsible,” he said.\u003c/p>\n\u003cp>But there are times when it’s crucial to track down a human business owner quickly, long before matters end up at court, said Larry Brooks, who runs the residential lead prevention program for Alameda County.\u003c/p>\n\u003cp>He remembers a case in 2022 when twin toddlers were found living in an old apartment with flaking paint. Lead levels in their blood were so high the children were immediately hospitalized. The twins’ parents, undocumented immigrants, initially refused to put Brooks and his team in touch with the building’s property management company, fearing eviction or deportation, he said.\u003c/p>\n\u003cp>So Brooks began hunting on his own. He turned first to the county assessor’s office to find the property owner’s name, then plugged that name into the Secretary of State’s database. The corporate documents there only listed a street address. Brooks struggled to connect that address with a phone number or email address.\u003c/p>\n\u003cp>Finally, a county nurse persuaded the twins’ mother to share the phone number of a Sacramento-based property management company. That company put Brooks in touch with the owner, a corporation in Texas, he said. The entire process took two weeks.\u003c/p>\n\u003cp>“I wish that there were some state or federal law that required every corporate landlord to have a local contact,” said Brooks, who has also advised Human Impact Partners, a public health nonprofit that supports Durazo’s bill. “In a situation like with the twins, where the blood lead levels were so high they were life-threatening, and the kids had to be rushed to the hospital, you want to be able to call somebody immediately.”\u003c/p>\n\u003cp>Brooks said he couldn’t share additional information about the children or the landlord, citing medical privacy laws and pending litigation. CalMatters was unable to verify the details of the story independently.\u003c/p>\n\u003cp>Making it easier to find the name and address of a business owner would provide a treasure trove of data for tenant rights organizations, housing researchers and \u003ca href=\"https://www.latimes.com/opinion/story/2021-02-24/rental-housing-shell-companies-landlords\">investigative reporters\u003c/a>.\u003c/p>\n\u003cp>But it would also be a boon for would-be harassers and activists, said Carlton. “I can’t figure out what their true purpose is,” she said of the bill’s sponsors. “They want to shame people publicly, maybe.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But Carlton was also puzzled by the $9 million cost estimate: “I almost felt like saying, ‘We could do it,’” she said. “We could do it for $200.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"tagline": "The flip side of gentrification, told through one town",
"info": "Gentrification is changing cities across America, forcing people from neighborhoods they have long called home. Call them the displaced. Now those priced out of the Bay Area are looking for a better life in an unlikely place. American Suburb follows this migration to one California town along the Delta, 45 miles from San Francisco. But is this once sleepy suburb ready for them?",
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"tagline": "Exploring the Bay Area, one question at a time",
"info": "KQED’s new podcast, Bay Curious, gets to the bottom of the mysteries — both profound and peculiar — that give the Bay Area its unique identity. And we’ll do it with your help! You ask the questions. You decide what Bay Curious investigates. And you join us on the journey to find the answers.",
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"info": "KQED’s statewide radio news program providing daily coverage of issues, trends and public policy decisions.",
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"order": 8
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},
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"id": "commonwealth-club",
"title": "Commonwealth Club of California Podcast",
"info": "The Commonwealth Club of California is the nation's oldest and largest public affairs forum. As a non-partisan forum, The Club brings to the public airwaves diverse viewpoints on important topics. The Club's weekly radio broadcast - the oldest in the U.S., dating back to 1924 - is carried across the nation on public radio stations and is now podcasting. Our website archive features audio of our recent programs, as well as selected speeches from our long and distinguished history. This podcast feed is usually updated twice a week and is always un-edited.",
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"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Commonwealth-Club-Podcast-Tile-360x360-1.jpg",
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"source": "Commonwealth Club of California"
},
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"info": "KQED’s live call-in program discussing local, state, national and international issues, as well as in-depth interviews.",
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"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Forum-Podcast-Tile-703x703-1.jpg",
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"order": 9
},
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"hidden-brain": {
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"airtime": "SUN 7:30pm-8pm",
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"tagline": "Where conversation and cultura meet",
"info": "What kind of no sabo word is Hyphenación? For us, it’s about living within a hyphenation. Like being a third-gen Mexican-American from the Texas border now living that Bay Area Chicano life. Like Xorje! Each week we bring together a couple of hyphenated Latinos to talk all about personal life choices: family, careers, relationships, belonging … everything is on the table. ",
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"title": "The Political Mind of Jerry Brown",
"tagline": "Lessons from a lifetime in politics",
"info": "The Political Mind of Jerry Brown brings listeners the wisdom of the former Governor, Mayor, and presidential candidate. Scott Shafer interviewed Brown for more than 40 hours, covering the former governor's life and half-century in the political game – and Brown has some lessons he'd like to share. ",
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"order": 18
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"id": "latino-usa",
"title": "Latino USA",
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"info": "Latino USA, the radio journal of news and culture, is the only national, English-language radio program produced from a Latino perspective.",
"imageSrc": "https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/latinoUsa.jpg",
"officialWebsiteLink": "http://latinousa.org/",
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},
"marketplace": {
"id": "marketplace",
"title": "Marketplace",
"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
"airtime": "MON-FRI 4pm-4:30pm, MON-WED 6:30pm-7pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Marketplace-Podcast-Tile-360x360-1.jpg",
"officialWebsiteLink": "https://www.marketplace.org/",
"meta": {
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"source": "American Public Media"
},
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"rss": "https://feeds.publicradio.org/public_feeds/marketplace-pm/rss/rss"
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},
"masters-of-scale": {
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"title": "Masters of Scale",
"info": "Masters of Scale is an original podcast in which LinkedIn co-founder and Greylock Partner Reid Hoffman sets out to describe and prove theories that explain how great entrepreneurs take their companies from zero to a gazillion in ingenious fashion.",
"airtime": "Every other Wednesday June 12 through October 16 at 8pm (repeats Thursdays at 2am)",
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"officialWebsiteLink": "https://mastersofscale.com/",
"meta": {
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"source": "WaitWhat"
},
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"rss": "https://rss.art19.com/masters-of-scale"
}
},
"mindshift": {
"id": "mindshift",
"title": "MindShift",
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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