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The motivation for SB 905 was a pilot program under which city officials and employees in a <br /> number of cities have started to contribute funds to a special account established by Action for <br /> Better Cities (ABC) to protect city govemment services, revenues and jobs. As Assembly <br /> Member Daucher pointed out during the floor debate, the purpose of SB 905 was to prevent <br /> employees and officers from making contributions to groups that would work to stabilize local <br /> govemment revenues and jobs, and to return the share of the property tax which continues to be <br /> taken by state leaders. <br /> <br /> The Governor did sign a companion measure, AB 1243 (VViggins). The sponsors of SB 905 <br /> introduced this measure in a late-hour attempt to preempt the field of payroll deduction <br /> programs. However, this attempt failed with the veto of SB 905. The League's legal counsel <br /> has advised that AB 1243 grants authority to cities and other public agencies, that they don't <br /> need in order to establish payroll deduction programs. Further, the law cannot be either <br /> exclusive nor preemptive in its language or effect since it omits many of the most common <br /> payroll deductions currently requested by city employees. As a result, it does not limit the <br /> authority of cities or other public agencies in establishing payroll deduction programs or making <br /> other payroll deductions requested by their employees. In establishing such programs in the <br /> future, the League urges cities to rely on their alternative legal authority rather than that contained <br /> in AB 1243. <br /> <br /> League Supports Proposition 46: Housing & Emergency <br /> Shelter Trust Fund Act of 2002-City Officials Urged to Get <br /> Involved <br /> <br /> The League Board of Directors in July voted to support Proposition 46, the Housing and <br />Emergency Shelter Trust Fund Act of 2002 -- and to make it a priority for the League and its <br />Grassroots Network. With 5 to 6 weeks left before the November vote on Proposition 46, the <br />League has established a rigorous schedule of local activities designed to build support for the <br />measure. <br /> <br /> It is no secret that California's housing problem is building to crisis proportion. The housing <br />crisis cuts across all age and economic levels. Whether directly or indirectly, lack of housing <br />affects everyone. In our communities, the problems of safe and clean shelters, housing <br />affordability, and homelessness have gotten progressively worse. Proposition 46, the Housing <br />and Emergency Shelter Trust F~nd Act of 2002, provides significant help to these pressing <br />problems. <br /> <br /> Proposition 46 is a $2.1 billion bond measure that provides emergency shelters for battered <br />women, affordable housing for seniors, Iow-income families and homeless shelters with social <br />services, it is an important step forward in providing housing and emergency shelters for needy <br />Californians. <br /> <br /> Proposition 46 also allocates hundreds of millions of dollars to provide housing loan <br />assistance for Iow-and moderate-income families -- such as seniors, families with children, <br />teachers, disabled persons, veterans and working people. Proposition 46 funds housing and <br />shelter programs that have a proven track record of success. <br /> <br /> Page 2 of 13 <br /> <br /> <br />