REFORM
CALIFORNIA
September 25, 2018
Anabel Renteria
Initiative Coordinator
Office of the Attorney General
1300 I Street, 17'h Floor
Sacramento, CA 95814

RECEIVED
SEP25 2018
INITIATIVE COORDINATOR
ATTORNEY GENERAL S OFFICE

Re: Request for Title and Summary for Initiative Constitutional Amendment - "Citizens' Lockbox for
Road Repairs and Infrastructure Improvements"

Dear Ms. Renteria:
Pursuant to Elections Code 9001(a), I hereby request that the Attorney General prepare a circulating
title and summary of the chief purpose and points of the following proposed initiative measure.
Enclosed please find a check for $2000 for the fee required to initiate this process.
Any correspondence
regarding this initiative should be directed to Reform California, Attention Carl DeMaio at PO Box 27227
San Diego CA 92198 (telephone: 619-786-8019)- email carl@carldemaio.com
Thank you for your anticipated cooperation.

~
Carl DeMaio
Proponent of Enclosed Initiative

I, CarlDeMaio,declare under penalty of perjury that I am a citizen of the United States, 18 years of age
or alder, and a resident of San Diegocounty, California.(Elec.Code,§ 9001.} I, CarlDeMaio,
acknowledge that it is a misdemeanor under state law (Section18650 of the ElectionsCode)to
knowingly or willfullyallow the signatures on an initiativepetition to be usedfor any purpose other than
qualificationof the proposed measurefor the ballot. I certify that I will not knowingly or willfullyallow
the si natures for this initiative to be used for any purpose other than qualificationof the measure for
th
lot.

Paid for by Reform California, Yes on 6 FPPC# 1268914 - PO Box 27227, San Diego CA 92198

 Yes on Prop 6 Campaign Offers "Replacement" Initiative to Fund Roads/Infrastructure

Section 1. Title.

This Act shall be known, and may be cited as, the Citizens' Lockbox for Road Repairs and
Infrastructure Improvements.

Section 2. Findings & Declarations.
(a) California's taxpayers already pay some of the highest gas taxes in the country but are forced
to suffer with some of the worst roads and infrastructure in the country because politicians have
diverted, stolen, and wasted the funds. California taxpayers desire to end the diversion of tax
funds that should properly go to fund roads and infrastructure.

(b) Due to lack of accountability and efficient management, infrastructure projects cost far more

in California than projects implemented in other states.

(c) Therefore, the people hereby amend the Constitution to impose accountability on the
allocation and use of tax funds for road repairs and infrastructure improvements.

Section 3. Article XIX E of the California Constitution is added to read:
ARTICLE XIXE
Citizens' Lock Box and Accountability Reforms for Infrastructure
SECTION 1. Notwithstanding Articles XIX to XIX D, inclusive, all revenues collected on and
after January 1, 2021, from taxes imposed by the State on motor vehicle fuels for use in motor
vehicles upon public streets and highways shall be deposited into the Citizens' Lock Box for
Road Repairs, Maintenance, and Improvement, which is hereby created and declared to be a trust
fund, and shall be allocated monthly in accordance with Section 4 and shall be used solely for the
following purposes:
(a) Capital outlay for public streets and highways, provided that the entity carrying out the
capital outlay project is a private, non-governmental entity. For purposes of this subdivision,
"capital outlay" means the expenditure of funds for the acquisition of land or other real property,
major construction, improvements, equipment, designs, specifications, and equipment necessary
in connection with a construction or improvement project on a public street or highway.

 Yes on Prop 6 Campaign Offers "Replacement" Initiative to Fund Roads/Infrastructure

(b) Repairs and maintenance of public streets and highways, which are intended to keep a
facility functional at its designed level of services and life expectancy, provided that the entity
carrying out the repairs and maintenance is a private, non-governmental entity.
SECTION 2. (a) Notwithstanding Articles XIX to XIX D, inclusive, and Section 15 of Article
XI, all revenues collected on and after January 1, 2021, from taxes imposed by the State on the
purchase, use, or operation of vehicles, including taxes and fees imposed pursuant to the Sales
and Use Tax Law or the Vehicle License Fee Law and taxes imposed on insurance for motor
vehicles used upon the public streets and highways, and all amendments and additions now or
hereafter made to such statutes, shall be deposited into the Citizens' Lock Box for Transportation
Infrastructure Repair, Maintenance, Operation, and Improvement, which is hereby created and
declared to be a trust fund, and shall be allocated monthly in accordance with Section 4 and shall
be used solely for the research, planning, construction, improvement, maintenance, and operation
of public streets and highways (and their related public facilities for nonmotorized traffic), public
mass transit guideways (and their related fixed facilities), including the mitigation of their
environmental effects, the payment for property taken or damaged for such purposes, and state
administration and enforcement.
(b) Notwithstanding Articles XIX to XIX D, inclusive, all revenues collected on and after
January 1, 2021, from fines and penalties imposed for violation of traffic and vehicle laws and
from fees imposed by the State upon motor vehicles or their use or operation, including license
fees, and all amendments and additions now or hereafter made to such statutes governing those
penalties, fines, and fees, shall be deposited into the Citizens' Lock Box for Transportation
Infrastructure Repair, Maintenance, Operation, and Improvement, and shall be used solely for the
state administration and enforcement of laws regulating the use, operation or registration of
vehicles used upon the public streets and highways of this state, including the enforcement of
traffic and vehicle laws by state agencies, support for courts with regard to costs incurred for
cases relating to the enforcement of traffic and vehicle laws, and the mitigation of the
environmental effects of motor vehicle operation due to air and sound emissions.
SECTION 3. (a) For the purposes of this section, "transportation project" means any project or
expenditure of state or local funds for activities related to the construction, improvement,
maintenance, or operation of highways, roads, bridges, rail, transit, airport, port, or supporting
infrastructure facilitating movement of people and things.
(b) State or local government resources shall not be used to fund any transportation project
that limits the rights of any contractor or worker from participating on the project because of
their union or non-union status, including any limitations imposed by a project labor agreement
binding any contractor hired or funded by a state or local government entity.
(c) The State or a local government shall not impose any requirement regarding
compensation and benefits that an employer or entity must pay to employees
transportation project that is greater than the requirements expressly mandated by
regulation or a requirement imposed by the federal government as a condition
federal funds for that transportation project.

the amount of
working on a
federal law or
for receipt of

 Yes on Prop 6 Campaign Offers "Replacement" Initiative to Fund Roads/Infrastructure

(d) The Legislature shall not enact a law, and state government agencies shall not take any
action, to prohibit or limit the ability of a local government to use competitive bidding or
outsourcing as a means of carrying out work on a transportation project.
(e) (1) The Governor and Legislature shall terminate any funding for the project known as
California High-Speed Rail, which is a project funded by in part by bonds authorized by
Proposition IA that was approved by voters at the November 4, 2008, general election. The state
government shall cease all activities on the California High-Speed Rail project carried out or
funded in whole or in part by public funds. The Governor may only expend such minimal funds
as is necessary to effect the orderly and complete termination of the project no later than June 30,
2021. The Governor and the Legislature shall not take any action that would have the effect of
extending activity or supporting the successful completion of this project.
(2) No further bonds shall be issued and sold for purposes of Section 2704.06 of the Streets
and Highways Code on and after the effective date of this section. The unspent proceeds received
from outstanding bonds issued and sold pursuant to Section 2704.06 of the Streets and Highways
Code prior to the effective date of this section shall be redirected from high-speed rail purposes
for use in retiring the debt incurred from the issuance and sale of those outstanding bonds.
(f) (1) The State Auditor shall conduct an annual program of transportation project
performance and efficiency audits on transportation projects funded by revenues covered by
Sections 1 and 2 that examines the quality of projects, the cost of projects, internal management
efficiency, and contractor performance. The Legislative Analyst's Office (LAO) or its successor
shall select the projects that are to be audited each year by the State Auditor. The LAO shall
select one-quarter of the projects based on proposals from the majority party of the State Senate,
one-quarter of the projects based on proposals from the minority party of the State Senate, one­
quarter of the projects based on proposals from submissions from city and county governments,
and one-quarter of projects based on proposals of citizens of California.
(2) By January 1, 2024, and at least every three years thereafter, the State Auditor shall
conduct a perfonnance and efficiency audit of the Department of Motor Vehicles or its successor
that examines customer service, quality of projects, cost of projects, internal management
efficiency, and contractor perfonnance.
SECTION 4. (a) (1) All revenues described in Section 1 and in subdivision (a) of Section 2
shall be allocated to cities and counties. Each city and county shall receive a percentage of these
revenues corresponding to the percentage of funds they received under any formulas or
allocations governing transportation funding for cities and counties that were in place as of
January 1, 2018.
(2) A statute enacted by the Legislature modifying the allocations required by paragraph (1)
must be by a bill passed in each house of the Legislature by rollcall vote entered in the journal,
two-thirds of the membership concurring, provided that the bill does not contain any other
unrelated provision.

 Yes on Prop 6 Campaign Offers "Replacement" Initiative to Fund Roads/Infrastructure

(b) The revenues allocated by statute to cities and counties pursuant to this article may be
used solely by the city or county to which they are allocated, and solely for the purposes
described in Sections 1 and 2 and subject to the restrictions established in Section 3.
(c) Cities and counties are responsible for maintaining and constructing local streets and roads
and the portions of state highways located within their jurisdiction. This section does not limit
the ability of the state government to regulate the use, condition, or safety of local streets and
roads and state highways.
(d) The Governor or the Legislature may not take any action that permanently or temporarily
does any of the following: (1) changes the status of the Citizens' Lock Boxes established by this
article as trust funds; (2) borrows, diverts, or appropriates these revenues for purposes other than
those described in this article; or (3) delays, defers, suspends, or otherwise interrupts the
payment, allocation, distribution, disbursal, or transfer of revenues from taxes described in this
article to cities and counties.
(e) If the Legislature reduces or repeals the taxes described in this article and adopts an
alternative source of revenue to replace the moneys derived from those taxes, the replacement
revenue shall be deposited into the trust funds established by this article and dedicated to the
purposes listed in this article, and allocated to cities and counties pursuant to this article. All
other provisions of this article shall apply to any revenues adopted by the Legislature to replace
the moneys derived from the taxes described in this article.