BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           496 (Davis)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant:  Maureen Ortiz      Policy Vote: ER&CA: 4-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 496, an urgency measure, requires the state  
          to reimburse counties for the costs of special elections to fill  
          vacancies of State Senator, Member of the Assembly, United  
          States Senator, or Representative in Congress.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Election reimbursement    $0                 $1,000               
          $1,000           General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE.
          
          Costs to hold a special election to fill a vacancy vary and  
          depend on the size of the county, but the average costs are  
          approximately $1 million.  AB 496 provides that any costs  
          incurred by counties for elections held in 2010 will not be  
          reimbursed before the 2011-12 fiscal year.

          AB 496 requires that all expenses authorized and necessarily  
          incurred in the preparation for and the conduct of elections  
          proclaimed by the Governor to fill a vacancy will be paid by the  
          state.  When such an election is consolidated with an already  
          scheduled local election, the state will pay only those  
          incremental costs directly related to the election proclaimed by  
          the Governor.

          Since the enactment of AB 37 (Johnson), Chapter 39, Statutes of  
          1993, the state has reimbursed counties for the cost of special  
          elections held to fill legislative and congressional vacancies.   
          That measure, however, contained a sunset which repealed the  
          reimbursement requirement January 1, 1996.  Legislation  
          extending the sunset date has been enacted several times as  










          follows:

          a)  AB 1709 (McPherson), Chapter 1102, Statutes of 1996 extended  
          the sunset date for the reimbursement to January 1, 2000. 
          b)  AB 547 (Longville), Chapter 790, Statutes of 1999 further  
          extended the sunset date to January 1, 2005.  
          c)  AB 183 (Longville) of 2001 which would have removed the  
          sunset entirely was vetoed by Governor Davis who indicated that  
          California's economy was in decline, and that there was ample  
          time to extend the sunset before the reimbursement requirement  
          was repealed in 2005.  
          d)  AB 783 (Jones), Chapter 714, Statutes of 2005 reinstated the  
          reimbursement provision and extended the sunset date to January  
          1, 2006.  
          e)  AB 1799 (McCarthy), Chapter 727, Statutes of 2006 extended  
          the sunset date until January 1, 2007.


          AB 496 (Davis)
          Page2



          Special elections that are called by the Governor to fill a  
          vacancy place a tremendous financial burden on counties that  
          likely had not budgeted for the unanticipated additional  
          expenses of such an election.  Often times, resources must be  
          taken from other essential programs to pay for these elections.

          AB 1769 (Tran) which was held on the Assembly Appropriations  
          Suspense File in May will require reimbursements to counties for  
          special elections held to fill vacancies between January 1, 2009  
          and December 31, 2010.    During 2009, special elections were  
          held to fill seven vacancies including three Assembly seats, two  
          Senate seats, and two seats in the House of Representatives, at  
          a cost of approximately $9.3 million.  Two elections are  
          scheduled in 2010 for vacant seats, one in each of the Senate  
          and Assembly with estimated costs of about $2.7 million. 

          This bill is similar to SB 994 (Davis) which was held on this  
          committee's Suspense File earlier this year.