No matter how you slice it, ACA 1 is a tax hike and any Legislator that votes for it is voting to hike your taxes. Be warned.

At your request: This week's California Commentary by Jon Coupal
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** California Commentary
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** California’s shakedown government expands under Gavin Newsom
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By Jon Coupal

If you thought Governor Gavin Newsom’s new gas tax, SBX1-2, was about punishing big, bad oil companies, it’s not. It’s actually about much more – and none of it is good news for taxpayers.

For those who weren’t paying attention last week, SBX1-2 was Newsom’s attack on California’s oil producers who, he alleges, have been gouging consumers with high gas prices. This is horrible legislation, not only for its substance, but also for how it became law. The bill’s unusual number, SBX1-2, is the first giveaway that this was not normal legislation, but rather the product of a “special session,” which Newsom called last December.

After no action on Newsom’s declared “crisis” for months, the bill was jammed through in less than a week. There were no meaningful hearings, no public testimony, no opportunity for those directly impacted to present opposing views. Because the legislation was moved during a “special session,” it was able (by design) to avoid many of the procedural requirements of normal legislation. This was a shameful display of raw political power which, thanks to one-party rule, is now all too common.

As for substance, SBX1-2 sets a new speed record in California’s headlong rush toward Soviet-style central planning. The Newsom gas tax law creates a new agency under the California Energy Commission with powers to investigate petroleum companies and impose new penalties, costs and regulations. This new agency is vested with the authority to decide how much profit oil and gas businesses are allowed to make.

SBX1-2 is a gross insult to taxpayers. First, the Legislature’s own analysis projects that it will cost nearly $10 million annually with a minimum of 34 new enforcement bureaucrats. Specifically, according to the Assembly Appropriations Committee, “this bill will result in significant ongoing costs to the [California Energy Commission] in the millions of dollars annually, to develop rules and review data submissions; to establish and administer the Advisory Committee and the Division; to exercise its new authority to set a maximum margin; and to administer a penalty, if created.”

But this cost is a bargain compared to what the creation of this new Orwellian agency will do to the price of gas and other petroleum products. The regulatory scheme created by SBX1-2 is almost certain to disrupt California’s energy market and threaten the reliability of the state’s already fragile fuel supply.

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Click here to listen to this week's Howard Jarvis Podcast, "California: Exempt From Reality" ([link removed]) The Howard Jarvis Podcast features HJTA President Jon Coupal and VP of Communications Susan Shelley with a lively conversation that takes you inside California government in a way that's fun, interesting and sometimes scary. Check out all the recent podcasts by clicking here: [link removed]
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Jon Coupal is the President of the Howard Jarvis Taxpayers Association (HJTA). He is a recognized expert in California fiscal affairs and has argued numerous tax cases before the courts.
HJTA always appreciates the support of its members, if it doesn't pose a hardship. Your donations help us fight to protect Proposition 13 and all California taxpayers.
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