On March 27, 2009, Governor Schwarzenegger issued an Executive Order to establish the Commission and examine California's tax system, searching for ways to modernize its tax system and eliminate the "ups and downs" of its tax revenues.
The likelihood that the proposal would actually be considered and passed is unknown at the moment; however, with the state's budget crisis only getting worse, I wouldn't rule anything out.
To read an analysis of the Commission's proposal, please click on the following link: http://www.cotce.ca.gov/
In addition, the California Manufacturers and Technology Association (CMTA) is following this proposal and has a nice write-up on their site as well. Click on the following link to access their write-up: http://www.cmta.net/legupdate.php?legupdate_id=1535
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