BILL NUMBER: AB 1021	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 19, 2011

INTRODUCED BY   Assembly Member Gordon

                        FEBRUARY 18, 2011

   An act to amend Sections 9005 and 9087 of the Elections Code, and
to amend Section 88003 of the Government Code, relating to elections.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1021, as amended, Gordon. Ballot measures: fiscal analysis.
   Existing law directs the Attorney General, in preparing a
circulating title and summary for a proposed ballot initiative, to
include an estimate of the amount of increase or decrease of revenues
or costs to the state. Existing law requires the Department of
Finance and the Joint Legislative Budget Committee to jointly make
and deliver such an estimate to the Attorney General so that he or
she may include it in the circulating title and summary.
   This bill would, based on the fiscal analysis by the Department of
Finance and the Joint Legislative Budget Committee, that a measure
which would establish a new or expanded program costing more than
$1,000,000  per   in any  year without
providing new revenues or eliminating existing programs to offset
those costs, require that specified language be provided to the
Attorney General which may be included in the circulating title and
summary advising that the proposed initiative does not include
sufficient funding to pay the cost of the measure.
   Existing law directs the Legislative Analyst to prepare an
unbiased fiscal analysis of a measure that is included in the ballot
pamphlet stating whether the measure would result in increased or
decreased costs to the state and an estimate of those costs or
savings.
   This bill also would require, if a fiscal analysis by the
Legislative Analyst determines that a measure would establish a new
or expanded program costing more than $1,000,000  per
  in any  year without providing new revenues or
eliminating existing programs to offset those costs, that specified
language be added to the ballot pamphlet advising that the proposed
measure does not include sufficient funding to pay the cost of the
measure.
   This bill would also make technical changes to conform provisions
of the Political Reform Act of 1974 and parallel provisions in the
Elections Code relating to the ballot pamphlet.
   The Political Reform Act of 1974, an initiative measure, generally
provides that the Legislature may amend the act to further the act's
purposes upon a 2/3 vote of each house and compliance with specified
procedural requirements.
   The act also provides that, notwithstanding this requirement, the
Legislature may amend specified provisions to add to the ballot
pamphlet information regarding candidates or other information.
   This bill, which would permit or require additional information to
be included in the ballot pamphlet, would therefore require a
majority vote.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 9005 of the Elections Code is amended to read:
   9005.  (a) The Attorney General, in preparing a circulating title
and summary for a proposed initiative measure, shall, in boldface
print, include in the circulating title and summary either the
estimate of the amount of any increase or decrease in revenues or
costs to the state or local government, or an opinion as to whether
or not a substantial net change in state or local finances would
result if the proposed initiative is adopted.
   (b) The estimate as required by this section shall be made jointly
by the Department of Finance and the Joint Legislative Budget
Committee, who shall deliver the estimate to the Attorney General so
that he or she may include the estimate in the circulating title and
summary prepared by him or her.
   (c) The estimate shall be delivered to the Attorney General within
25 working days from the date of receipt of the final version of the
proposed initiative measure from the Attorney General, unless, in
the opinion of both the Department of Finance and the Joint
Legislative Budget Committee, a reasonable estimate of the net impact
of the proposed initiative measure cannot be prepared within the
25-day period. In the latter case, the Department of Finance and the
Joint Legislative Budget Committee shall, within the 25-day period,
give the Attorney General their opinion as to whether or not a
substantial net change in state or local finances would result if the
proposed initiative measure is adopted.
   (d) A statement of fiscal impact prepared by the Legislative
Analyst pursuant to subdivision (b) of Section 12172 of the
Government Code may be used by the Department of Finance and the
Joint Legislative Budget Committee in the preparation of the fiscal
estimate or the opinion.
   (e) If an initiative measure submitted for circulating title and
summary is determined in the joint analysis of the Joint Legislative
Budget Committee and Department of Finance to (1) establish a new or
expanded program, (2) cost more than one million dollars ($1,000,000)
 per   in any  year, excluding costs
attributable to the issuance, sale, or repayment of general
obligation bonds, and (3) not either provide new revenues or
eliminate all or part of existing programs sufficient to pay the cost
of the new or expanded program or service, a paragraph shall be
provided to the Attorney General, at the same time as the estimate
provided pursuant to subdivision (c), which may be included in the
title and summary prepared by the Attorney General pursuant to
Section 9004, stating as follows:
   "The Joint Legislative Budget Committee and Department of Finance
have determined that this measure does not include sufficient funds
to pay the cost of the new or expanded program or service provided
therein. Therefore, should the measure pass,  other programs
or services provided by the state would need to be reduced or
eliminated, or new state revenues raised, in order for the measure to
be implemented."   its costs would have to be paid from
one or more of the following:  
   (1) Reductions to existing state programs.  
   (2) Revenue increases.  
   (3) State reserves, if available." 
  SEC. 2.  Section 9087 of the Elections Code is amended to read:
   9087.  (a) The Legislative Analyst shall prepare an impartial
analysis of the measure describing the measure and including a fiscal
analysis of the measure showing the amount of any increase or
decrease in revenue or cost to state or local government. If it is
estimated that a measure would result in increased cost to the state,
an analysis of the measure's estimated impact on the state shall be
provided, including an estimate of the percentage of the General Fund
that would be expended due to the measure, using visual aids when
appropriate. An estimate of increased cost to the state or local
governments shall be set out in boldface print in the ballot
pamphlet.
   (b) The analysis shall be written in clear and concise terms, so
as to be easily understood by the average voter, and shall avoid the
use of technical terms wherever possible. The analysis may contain
background information, including the effect of the measure on
existing law and the effect of enacted legislation which will become
effective if the measure is adopted, and shall generally set forth in
an impartial manner the information the average voter needs to
adequately understand the measure. To the extent practicable, the
Legislative Analyst shall utilize a uniform method in each analysis
to describe the estimated increase or decrease in revenue or cost of
a measure, so that the average voter may draw comparisons among the
fiscal impacts of measures. The condensed statement of the fiscal
impact summary for the measure prepared by the Attorney General to
appear on the ballot shall be followed immediately by the uniform
estimate of increase or decrease in revenue or cost of the measure
prepared pursuant to this subdivision.
   (c) The Legislative Analyst may contract with professional
writers, educational specialists, or other persons for assistance in
writing an analysis that fulfills the requirements of this section,
including the requirement that the analysis be written so that it
will be easily understood by the average voter. The Legislative
Analyst may also request the assistance of a state department,
agency, or official in preparing his or her analysis.
   (d) Prior to submitting the analysis to the Secretary of State,
the Legislative Analyst shall submit the analysis to a committee of
five persons, appointed by the Legislative Analyst, for the purpose
of reviewing the analysis to confirm its clarity and easy
comprehension to the average voter. The committee shall be drawn from
the public at large, and one member shall be a specialist in
education, one member shall be bilingual, and one member shall be a
professional writer. Members of the committee shall be reimbursed for
reasonable and necessary expenses incurred in performing their
duties. Within five days of the submission of the analysis to the
committee, the committee shall make recommendations to the
Legislative Analyst as it deems appropriate to guarantee that the
analysis can be easily understood by the average voter. The
Legislative Analyst shall consider the committee's recommendations,
and he or she shall incorporate in the analysis those changes
recommended by the committee that he or she deems to be appropriate.
The Legislative Analyst is solely responsible for determining the
content of the analysis required by this section.
   (e) The title of the measure that appears on the ballot shall be
amended to contain a summary of the Legislative Analyst's estimate of
the net state and local government fiscal impact.
   (f) If a measure qualifies for the ballot and the Legislative
Analyst's analysis pursuant to this section determines that the
measure would (1) establish a new or expanded program, (2) cost more
than one million dollars ($1,000,000)  per   in
any  year, excluding costs attributable to the issuance, sale,
or repayment of general obligation bonds, if implemented, and (3)
does not either provide new revenues or eliminate all or part of
existing programs sufficient to pay the cost of the new or expanded
program or service, a paragraph shall be added to the summary
statement established pursuant to Section 9085 of the ballot pamphlet
prepared pursuant to Section 9081, stating as follows:
   "This measure does not include sufficient funds to pay the cost of
the new or expanded program or service provided therein. Therefore,
should the measure pass,  other programs or services provided
by the state would need to be reduced or eliminated, or new state
revenues raised, in order for the measure to be implemented."
  its costs would have to be paid from one or more of
the following:  
   (1) Reductions to existing state programs.  
   (2) Revenue increases.  
   (3) State reserves, if available." 
  SEC. 3.  Section 88003 of the Government Code is amended to read:
   88003.  (a) The Legislative Analyst shall prepare an impartial
analysis of the measure describing the measure and including a fiscal
analysis of the measure showing the amount of any increase or
decrease in revenue or cost to state or local government. If it is
estimated that a measure would result in increased cost to the state,
an analysis of the measure's estimated impact on the state shall be
provided, including an estimate of the percentage of the General Fund
that would be expended due to the measure, using visual aids when
appropriate. An estimate of increased cost to the state or local
governments shall be set out in boldface print in the ballot
pamphlet.
   (b) The analysis shall be written in clear and concise terms, so
as to be easily understood by the average voter, and shall avoid the
use of technical terms wherever possible. The analysis may contain
background information, including the effect of the measure on
existing law and the effect of enacted legislation which will become
effective if the measure is adopted, and shall generally set forth in
an impartial manner the information the average voter needs to
adequately understand the measure. To the extent practicable, the
Legislative Analyst shall utilize a uniform method in each analysis
to describe the estimated increase or decrease in revenue or cost of
a measure, so that the average voter may draw comparisons among the
fiscal impacts of measures. The condensed statement of the fiscal
impact summary for the measure prepared by the Attorney General to
appear on the ballot shall be followed immediately by the uniform
estimate of increase or decrease in revenue or cost of the measure
prepared pursuant to this subdivision.
   (c) The Legislative Analyst may contract with professional
writers, educational specialists, or other persons for assistance in
writing an analysis that fulfills the requirements of this section,
including the requirement that the analysis be written so that it
will be easily understood by the average voter. The Legislative
Analyst may also request the assistance of a state department,
agency, or official in preparing his or her analysis.
   (d) Prior to submitting the analysis to the Secretary of State,
the Legislative Analyst shall submit the analysis to a committee of
five persons appointed by the Legislative Analyst for the purpose of
reviewing the analysis to confirm its clarity and easy comprehension
to the average voter. The committee shall be drawn from the public at
large, and one member shall be a specialist in education, one member
shall be bilingual, and one member shall be a professional writer.
Members of the committee shall be reimbursed for reasonable and
necessary expenses incurred in performing their duties. Within five
days of the submission of the analysis to the committee, the
committee shall make recommendations to the Legislative Analyst as it
deems appropriate to guarantee that the analysis can be easily
understood by the average voter. The Legislative Analyst shall
consider the committee's recommendations, and he or she shall
incorporate in the analysis those changes recommended by the
committee that he or she deems to be appropriate. The Legislative
Analyst is solely responsible for determining the content of the
analysis required by this section.
   (e) The title of the measure that appears on the ballot shall be
amended to contain a summary of the Legislative Analyst's estimate of
the net state and local government fiscal impact.
   (f) If a measure qualifies for the ballot and the Legislative
Analyst's analysis pursuant to this section determines that the
measure would (1) establish a new or expanded program, (2) cost more
than one million dollars ($1,000,000)  per   in
any  year, excluding costs attributable to the issuance, sale,
or repayment of general obligation bonds, if implemented, and (3)
does not either provide new revenues or eliminate all or part of
existing programs sufficient to pay the cost of the new or expanded
program or service, a paragraph shall be added to the summary
statement established pursuant to Section 88002.5 of the ballot
pamphlet prepared pursuant to Section 88000, stating as follows:
   "This measure does not include sufficient funds to pay the cost of
the new or expanded program or service provided therein. Therefore,
should the measure pass,  other programs or services provided
by the state would need to be reduced or eliminated, or new state
revenues raised, in order for the measure to be implemented."
  its costs would have to be paid from one or more of
the following:  
   (1) Reductions to existing state programs.  
   (2) Revenue increases.  
   (3) State reserves, if available." 
  SEC. 4.  The Legislature finds and declares that this act permits
or requires the inclusion of additional information on the ballot
pamphlet in accordance with Section 88007 of the Government Code.