2020 California Propositions that Passed

On November 3, 2020, while the Country, writ large, was voting for the next President of the United States, Californians also voted on 12 ballot propositions that, if passed, would alter California law. From property tax breaks to further protections for data privacy, this year’s propositions covered a significant breadth of issues. But, after the votes were tallied, only 5 propositions received a majority of “Yes” votes: Propositions 14, 17, 19, 22, and 24. This article will briefly summarize the content and future effects of each.

Proposition 14

Embryonic stem cell research is used to conduct medical trials and research in hopes of discovering lifesaving treatments and cures for human ailments. In 2004, California borrowed $3 billion to create its own stem cell agency—the California Institute for Regenerative Medicine.

Proposition 14 will allow California to take out an additional loan of 5.5 billion dollars to expand its agency’s research capacity. Opponents of Prop 14 believed it would waste taxpayers’ dollars because, over the last 16 years, stem cell research has yet to produce any groundbreaking cures. However, only the future will tell whether this additional funding will lead to future cures. But one thing is for certain, when considering interest, Prop 14 will ultimately cost California taxpayers around 8 billion dollars over the next 30 years as the State pays back the loan.

Proposition 17

California, in 1974, changed its law so that felons could have the right to vote once their sentences were completed, and they were no longer on parole. With the passing of Proposition 17, that right to vote is now strengthened. Felons will now be able to vote while they are on parole but only still after their sentences are completed. This criminal justice reform will end up giving approximately 40,000 more people the right to vote in California; and of that substantial group, two-thirds will be Black or Latino. Prop 17, therefore, will make California’s voting population more racially diverse.

Proposition 19

In California, taxes are booming, except for the property taxes of baby boomers that is. The state historically has established property taxes mostly on the value of one’s home when he or she bought it — not its current market value. This perk is not exclusive to baby boomers, however. Their children, or other beneficiaries, pay the same low property tax if they inherit the baby boomer’s home. This tax safe haven has encouraged people over the age of 55 from done scaling their homes and moving to new properties as they age because doing so would be to costly. Not only would they have to worry about the cost of buying a new home in California’s expensive housing market, but they would have to give up their low costing property tax. Of course, realtors aren’t happy about this incentive and want the market to be filled with as many potential buyers as possible. Hence, the introduction of Proposition 19.

Prop. 19 gives Californians, aged 55 or older, a property tax break when buying a new home. And to make up for that loss on potential tax dollars, inheritors of the property (e.g., children) will only continue to receive the tax break if they make the it their primary home; and even then,  the tax break will only apply to the first 1 million dollars that is between the home’s original purchase price and its market value.

Proposition 22

In 2019, Assembly Bill 5 passed and made it difficult for companies to label their workers as independent contractors, rather than full-fledged employees. As a result, business such as Uber, Lyft, and Doordash took a financial hit. They were being forced to follow standard wage and hour restrictions, which were contrary to their business model.

Proposition 22, thus, serves as the response to Assembly Bill 5. It will transform “app-based” workers (e.g., drivers) back into independent contractors, exempting companies such as Lyft and Uber from having to follow standard wage and hour restrictions. But, to address concerns of fairness to workers, it will also guarantee an earnings floor, and a stipend to purchase health insurance. Customers of these “app-based” companies, moreover, can expect cheaper prices for using their services because the cost of California labor law will not be passed off on to them.

Proposition 24

In 2018, California lawmakers passed the California Consumer Privacy Act (CCPA), which gave consumers the right to find out how companies are collecting information about them, the option to opt out of having it collected, and the right to have that data deleted. Proposition 24 will strengthen the rights of consumers under the CCPA—which is currently the most consumer protective cyber security legislation in the country.

Specifically, Proposition 24 will: 1) allow consumers to tell businesses to limit the use of sensitive data, such as your exact location, health information, race and religion; 2) allow consumers to prohibit businesses from holding onto your data for longer than necessary;

3) allow the government to fine companies up to $7,500 for violating children’s privacy rights;

4) create a new state agency to enforce the privacy law, investigate violations and assess penalties; 5) reduce the number of businesses that have to comply, making it apply only to companies that buy or sell data of at least 100,000 households a year. their available sick leave.

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