Veterans Bond Act Signed By Governor
Measure will Authorize Continuation of Bonds for Cal-Vet Home Loan Program
Gov. Arnold Schwarzenegger has signed legislation to place a $900 million bond on the November ballot to finance home loans for California veterans returning from abroad. The measure, Senate Bill 1572, authored by my good friend and Senate Republican colleague Senator Mark Wyland, will be the twelfth measure on the fall ballot.
The proceeds from the bond go to the CalVet Home Loan program, which first began giving loans back in 1921, according to the Senate floor analysis of the bill. Since then, voters have approved $8.8 billion in bonds for the program, most recently voting for $500 million in 2000. The money goes to low-interest loans for veterans. In the history of the program, veterans' payments have always covered the bond principal and interest payments. There is about $102 million left in the current account, but with President Bush signing a law allowing for recent vets to access the funds (previously it was only those who served pre-1977) the fund is expected to become quickly depleted.
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Sales Tax on Digital Downloads Still a Terrible Idea
Assemblyman Charles Calderon got a lot of attention after introducing a bill that proposed digital content be subject to the sales and use tax. The label, “I-Tunes tax,” stuck, and the bill (AB 1956) was defeated in the Assembly Revenue and Taxation Committee, whose Chairman is the same Charles Calderon. What has not gotten as much attention is that Calderon has used the special session to re-introduce the same measure as a special session bill meaning we need to rehash what is so brazen and wrong about the proposal, ABX3 22 once more.
Under the State Constitution, a bill to create a new tax or increase an existing tax is the prerogative of the Legislature. Calderon’s bill would bypass this restriction by mandating the State Board of Equalization draft a regulation declaring that digital content is tangible personal property subject to tax. I believe Calderon’s argument is that in this bill the Legislature is not enacting a tax increase, but is ordering the BOE to take actions that will result in a tax increase. This transparent gimmick to avoid the Constitutional impediment to higher taxes caused BOE board-member, Betty Yee (D-San Francisco), to say at a public meeting that she is offended by Calderon’s proposal. It is a cynical hijacking of our process which exists for the benefit of the public, not Legislators who cannot get their way playing by the rules in the Legislature.
On the policy merits, I say there is simply no way to enforce this law without putting a cop inside everybody’s computer. How else is the BoE going to find out whether someone purchased and downloaded something on their laptop here or in Nevada? Computers receive information constantly for virus protection, upgrades for various forms of software, and so on. Much of the time computer users are not even aware this is happening. How is the BoE supposed to know?
Further our sales tax is a tax on tangible property. Calling computer bytes tangible is like asserting the moon is made of green cheese. You can call it that but that does not make it so.
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Around the District
Independence Day
For the fourteenth year in a row, my wife Dianne and I rode in the Huntington Beach 4 th of July Parade. This year we were joined by my daughter, son-in-law and grandson! I hope that everyone had a relaxing holiday while celebrating our nation’s 232 nd birthday.

Orange County Education Coalition
Representatives from the Orange County Education Coalition, an organization comprised of PTA members, Superintendents, and educators, met with me in my District Office to discuss their concerns related to the state budget.
Costa Mesa Chamber of Commerce
I recently met with representatives from the Costa Mesa Chamber of Commerce regarding some of the problems that often confront businesses and consumers when dealing with unlicensed contractors. Check with the Contractors State License Board to verify your contractor’s good standing: www.cslb.ca.gov
C & D Zodiac
I recently toured the Operations Center of C & D Zodiac, a Huntington Beach-based manufacturer of aircraft interiors. C & D is using the latest technology and sophisticated tooling to design lean and functional interiors—everything from ceiling panels to chair head rests.
Irvine Business Leadership Award
Thank you to the Irvine Chamber of Commerce for awarding me its “Business Leadership Award.” The Irvine Chamber of Commerce represents over 1,000 member businesses and 60,000 employees. I am grateful for this honor and proud to represent businesses in Irvine and throughout the 35 th Senate District.

Westminster’s “Crystal Ball”
Westminster really comes together as a city at the annual Mayor’s “Crystal Ball.” The proceeds from the event go to support the beautiful Westminster Rose Center. Couples of all ages danced the night away on the dance floor while listening to tunes from a live big band.
Orange County Business Council
The Orange County Business Council (OCBC) recently sent a delegation of business, academic and public agency leaders and local elected officials to the State Capitol. It was my pleasure to meet with these OCBC representatives at their “lobby your legislator” dinner.
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Saying Thanks
It is not uncommon to see the brave men and women of our armed forces out in the public, in airports, at restaurants, walking down the street. When I see them I want to rush over and grab their hands and say “Thank you for serving,” but such overt demonstrations are awkward among strangers, even when the gratitude is significant. Apparently, I am not alone. My good friend and former colleague in the Assembly, BOE member Bill Leonard sent me a link to a website that explains how to say “thank you” with a simple sign. As word spread about this easy way to demonstrate our appreciation for the sacrifices of our troops, more people are doing it and more of our service people are getting it. Watch the movie and then join me in saying thanks to our troops whenever and wherever you see them. Go to: http://www.gratitudecampaign.org/fullmovie.php
Another way to express your gratitude is to send our soldiers the things they need to be more comfortable in their harsh overseas environment. Two teenagers started a program to help soldiers call home and it has turned into a tremendous effort resulting in more than 12 million minutes of pre-paid calling cards and 15,000 cell phones each month for soldiers to use to call home. To donate money for calling cards or a used cell phone, go to: http://www.cellphonesforsoldiers.com/index.html.
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November Ballot Propositions
Your November ballot will be full of initiatives for you to consider. Given that about half of California voters now vote by mail, many of them weeks before the election, campaigns will start communicating their messages toward the end of summer. If you want to get ahead of the propaganda, take a look at the initiatives now and think about your position before you are bombarded with simplistic television commercials. The state ballot pamphlet that will include the arguments for and against each measure will be available for public examination beginning July 22nd.
The Secretary of State has announced the ballot numbers for eleven measures that will appear on the ballot for the November 4, 2008 General Election. They are:
Proposition 1 – The Safe, Reliable High Speed Train Bond Act
A $10 billion general obligation bond for a high speed train through California.
Proposition 2 – Prevention of Farm Cruelty Act
An initiative measure providing humane treatment standards for farm animals.
Proposition 3 – Children’s Hospital Bond Act of 2008
A $980 million general obligation bond for construction and renovation of children’s hospitals.
Proposition 4 – Child and Teen Safety and Stop Predators Act: Sarah’s Law
Prohibits a minor from having an abortion without notification of a parent or guardian.
Proposition 5 – Nonviolent Offender Rehabilitation Act of 2008
Increases funding for treatment of non-violent drug offenders on parole.
Proposition 6 – Save Neighborhoods Act
Requires new state spending on crime and anti-gang programs, increases penalties for gang, firearm and drug violations, and eliminates bail for violent gang felonies.
Proposition 7 – The Solar and Clean Energy Act of 2008
Requires all utilities to generate 50 percent of their energy from renewable sources by 2025.
Proposition 8 – California Marriage Protection Act
Amends the California Constitution to provide that only marriage between one man and one woman is valid or recognized in California.
Proposition 9 – Victims’ Bill of Rights Act of 2008
Establishes victim’s rights to notification and participation during criminal trials, parole and bail hearings.
Proposition 10 – California Renewable Energy and Clean Alternative Fuel Act
A $5 billion general obligation bond to fund the purchase of alternative fuel vehicles, and for research on alternative energy and alternative fuel technologies.
Proposition 11 – Voters First Act
Creates a 14 member bipartisan Citizens Redistricting Commission to draw districts for the State Senate, Assembly and Board of Equalization Districts after each decennial census.
The Legislature could still place more measures on the ballot, but for now, these eleven proposals are the ones that will appear when we vote in November.
For more information go to: http://www.sos.ca.gov/elections/elections_j.htm#2008General.
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