Is California in error though? Because Jerry Brown has certainly served more than 2 terms.
State law has changed since 1974. Not sure when it changed into 2 lifetime term limit, but it must have excluded all the governors before the change because Brown wouldn't be able to be governor today if not.
Proposition 140 was passed in November 1990. It implemented term limits for state executive officers, the legislature, and state board of equalization. In addition, it eliminated pensions for state officials, other than Social Security, and limited spending for the legislature.
The provision in the constitution for the governor is straightforward. Article V, Section 2 reads, "No governor may serve more than two terms."
But Proposition 140 also added Article XX (miscellaneous subjects), Section 7, which provided that term limits only applied to terms that began after January 1, 1990. It also defined a partial term that was more than half a full term, to count as a term (Arnold Schwarzenegger served 3-1/2 years in his first term, and was term limited). Gray Davis only served half a year of his second term, so is eligible for election, as is George Deukmejian who was finishing his second term when Proposition 140 was passed.
Proposition 140 also said that a senator elected in 1988 (and thus not on the ballot in 1990) would have that term (1988-1992) counted as one of his maximum of two. So it did have some retroactive effect.
I suspect that the transitional language was written in the way that it was primarily in consideration of the legislature, which would have most of its members termed out, even those re-elected in 1990. It probably would have been considered quite remote that any of the living ex-governors: Pat Brown (Jerry Brown's father), Ronald Reagan, Jerry Brown, or Deukmejian would seek to be elected governor again. It was 36 years (1974 to 2010) between Brown's two elections to begin two terms.
Pat Brown and Reagan have since died, so only Deukmejian (age 86) and Gray Davis remain as former governors eligible for election as governor. This picture from 2010 shows the 3 former governors who were eligible for election at that time
Interestingly, the opponents of Proposition 140 argued that it was placing a lifetime ban on additional service. Most gubernatorial term limits are on the number of consecutive terms, or on the number of terms in a certain time period.
In 2012, when the term limits of the legislature were modified, the transitional language was added in the section of the Constitution for the legislature, so the pre-1990 exemption in Article XX remains in effect.
From November 1990-2012, term limits for senators were 2 terms (8 years) and assembly members (6 years). Beginning in 2012, term limits are a combined limit of 12 years. A legislature who has served in the legislature for 10 years is not eligible for election to the senate.
So there are three classes of persons:
(1) Those whose service began before 1990. Since they were first elected before 2012, the old term limits apply, but their terms before 1990 do not count (except from 1988-1992 as a term for senator).
(2) Those whose service began after 1990, but before 2012. The old term limits apply, even if they switch from the Assembly to the Senate, or vice versa.
(3) Those whose service began after 2012. The new term limit applies. The change in term limits were modified in June 2012, with immediate effect, so the new limits apply to legislators first elected in November 2012.