(December 18, 2009) The California Chamber of Commerce Board of Directors has voted to support The Taxpayers Right to Vote Act (TRTVA) and The Continuous Coverage Auto Insurance Act.

Taxpayers Right to Vote Act

The act requires two-thirds voter approval before local governments may use public funds, bonds or other indebtedness to start up electric delivery service, expand electric delivery service into a new territory or implement a Community Choice Aggregation (CCA) program.

One of the reasons the CalChamber Board voted to support the measure is because it is will ensure that taxpayers and ratepayers, who are ultimately financially responsible to pay for the expansion or repay the debt, have the final say if their local elected leaders decide to get involved in or extend their involvement in the retail electric delivery service business.     

Californians generally receive their electric delivery service from one of three types of providers: investor-owned utilities (IOUs), local publically owned electric utilities (LPOUs), and eclectic service providers (ESPs). These providers provide 68 percent, 24 percent and 8 percent, respectively, of retail electricity service in the state.

Various statutes specify whether voter approval is required in connection with the start-up of electricity service by authorized local government entities. However, no vote of the public is generally required in such cases within the existing service territory of the local government entity that is proposing the expansion.

The TRTVA does not stop the start-up or expansion of any type of retail electric delivery service program proposed by local governments. TRTVA also does not preclude local governments from studying CCA or considering whether to implement a CCA program.  

The measure is currently in circulation for signatures.  If it qualifies, the measure would be on the June 2010 ballot.

Continuous Coverage Auto Insurance Discount Act

This measure amends Proposition 103, passed by the voters in 1988, to authorize the use of an additional discount on premiums for automobile insurance policies. In particular, the act would allow an insurer to offer a “continuous coverage” discount to new customers who have maintained their coverage while they previously were customers of another insurer. 

Continuous coverage is defined to also include applicants who experienced up to a 90-day lapse in coverage in the past five years for any reason other than nonpayment of their insurance premiums.  The continuous coverage discount would be based on the length of time the applicant or insured has been continuously covered.  Children residing with a parent may qualify for the discount based on their parent’s eligibility. 

The CalChamber Board voted to support this proposed measures for a number of reasons including the fact that it will align California with the vast majority of other states allowing insurers to offer this discount to all drivers who maintain ongoing auto insurance coverage. It will also allow consumers to access competitive or lower rates if an insured changes their insurer.  

The measure is currently in circulation for signatures. If it qualifies, the measure would be on the June 2010 ballot.