(1) The California Constitution generally requires appropriations from the General Fund to be enacted in a bill passed by a 2 3 vote in each house of the Legislature. Notwithstanding that requirement, the California Constitution authorizes the budget bill, other bills providing for appropriations related to the budget bill, and bills that make General Fund appropriations for the public schools, to be passed by a majority vote.

The California Constitution also generally requires a statute enacted at a regular session to go into effect on the January 1 next following a 90-day period from the date of enactment, except that the budget bill and other bills providing for appropriations related to the budget bill take effect immediately upon being signed by the Governor or upon a date specified in the legislation.

This measure would repeal the exceptions to the requirement that a bill making General Fund appropriations must be passed by a 2 3 vote, thereby requiring any bill that makes General Fund appropriations to be passed by a 2 3 vote. The measure would also repeal the exception authorizing the budget bill and other bills providing for appropriations related to the budget bill to take effect immediately upon being signed by the Governor or upon a date specified in the legislation.

(2) The California Constitution requires any change in state statute that results in any taxpayer paying a higher tax to be enacted in a bill passed by a 2 3 vote in each house of the Legislature.

This measure would also prohibit any action by a state agency that would impose a new charge, or that would increase an existing charge, on any person from taking effect unless the action is ratified by a bill passed by a 2 3 vote in each house of the Legislature.

(3) The California Constitution includes every officer and employee of the State within the state civil service, except as provided. The state judiciary has construed this civil service mandate to prohibit the state from contracting with private entities for the performance of governmental functions, except under specified circumstances. Notwithstanding the prohibition on contracting with private entities, the California Constitution authorizes the state and local governments to contract with qualified private entities for architectural and engineering services for public works of improvement.

This measure would expressly authorize the State of California and local governmental entities to contract with private entities for the performance of governmental services. The measure would require every state agency to annually subject at least 10% of its program activities, as measured by total budgetary expenditures for that state agency, to fair and open competitive bidding and would make each program activity executed by a state agency subject to competitive bidding at least once every 7 years. The measure would exclude state or local governmental services performed by sworn law enforcement personnel from these provisions.

The measure, beginning in the 2028–29 fiscal year, would prohibit total state employment costs from exceeding 95% of total state employment costs in the 2024–25 fiscal year, as provided. Beginning in the 2029–30 fiscal year, the measure would prohibit total state employment costs from exceeding total state employment costs in the immediately preceding fiscal year, as adjusted by the annual percentage change nationally in average wages as determined by the federal Bureau of Labor Statistics. The measure would require the California State Auditor to certify compliance with these requirements.