California Leaders Race to Finalize Ballot Measure Deals Before Deadline

California state leaders are working against the clock to reach last-minute agreements with interest groups on several high-profile ballot measures before Thursday's deadline to withdraw them from the November election. The annual ritual involves intense negotiations behind closed doors, as lawmakers seek to avoid costly and contentious campaigns by striking compromises.

One major deal has already been announced: a compromise between Uber and the state's trial lawyers. Uber had qualified a ballot initiative to cap attorney contingency fees and limit medical cost recoveries for crash victims, while attorney groups countered with a measure to increase Uber's liability for sexual misconduct.

The resulting legislation, Senate Bill 623, would cap medical cost recoveries in cases involving medical liens, but only for crashes involving ride-hailing services. It would not restrict contingency fees.

In exchange, Uber must strengthen driver background checks, including annual renewals and rejection of drivers convicted of violent offenses or DUI in the past seven years. The bill also prohibits attorneys from recommending medical providers they have financial ties to.

Consumer Watchdog praised the deal as striking a fair balance.

A record-breaking $11.25 billion affordable housing bond, Senate Bill 417, appears headed for the November ballot. The bond would authorize $10 billion for affordable housing construction, rehabilitation, and preservation, plus $1.25 billion to help veterans buy homes.

Governor Gavin Newsom said the bond would help over 40,000 people buy homes and create or preserve tens of thousands of affordable units. The Legislature must pass the bill by Thursday and the governor must sign it before it appears on the ballot.

However, the billionaire wealth tax—a one-time 5% tax on California's roughly 200 billionaires proposed by the Service Employees International Union-United Healthcare Workers West—remains unresolved. The union has rejected Governor Newsom's late-hour efforts to negotiate a withdrawal, despite Newsom's opposition and alliance with other labor groups and healthcare organizations.

The union estimates the tax would raise $100 billion for healthcare, schools, and food programs. Billionaires and Silicon Valley moguls argue it would drive wealthy residents out of the state.

The union offered a 2% alternative, but Newsom called it "poorly designed." Union President Dave Regan expressed doubts about a last-minute compromise and said they are prepared to go forward with the ballot measure.

Lawmakers are also expected to vote on a proposed constitutional amendment to increase the cap on deposits into the state's rainy day fund from 10% to 20% of general fund tax revenue. The "Save for California's Future Act" would also allow using excess revenues to pay down the state's $20 billion federal unemployment insurance debt from the COVID-19 pandemic.

The proposal is part of ongoing efforts to stabilize California's finances amid a multi-year budget deficit and heavy reliance on income taxes from wealthy residents.