BILL ANALYSIS Ó AB 1021 Page 1 Date of Hearing: May 18, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1021 (Gordon) - As Introduced: February 18, 2011 Policy Committee: ElectionsVote:5-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill, as proposed to be amended , requires that specific language be provided for the title and summary of a state initiative petition and be included in the analysis of a state proposition if the estimated fiscal impact of a proposed initiative or proposition meets specified criteria. Specifically, this bill: 1)Requires-if determined by the Legislative Analyst's Office (LAO) that the fiscal impact of a proposed initiative or a proposition, respectively, would (a) establish a new or expanded program, (b) cost more than $1 million in any year, and (c) not provide new revenues or eliminate or reduce other programs sufficient to offset the new costs-that a statement be provided to the Attorney General for potential inclusion in the title and summary for an initiative petition and that a similar statement be included in the analysis of a proposition provided in the state ballot pamphlet. The statement would say that it has been determined "?this measure does not include sufficient funds to pay the cost of the new program or expanded program or service provided herein. Therefore, should the measure pass, its cost would have to be supported from one or more of the following: 1) Reductions to existing state programs. 2) Revenue increases. 3) State reserves, if available." 1)Requires the LAO, in preparing the analysis of a proposition, to: a) Include the estimated percentage of the state General AB 1021 Page 2 Fund that the measure would cost and use visual aids where appropriate. b) Use a uniform method in each analysis, to the extent practicable, to describe the estimated increase or decrease in cost or revenue of each proposition. FISCAL EFFECT Negligible fiscal impact. For every additional page required in the state ballot pamphlet, the cost is $66,000. However, the Secretary of State's (SOS's) office formats the Voter Information Guide in 16-page increments, thus there is often blank space available for additional information. Moreover, additional pages would likely not be necessary solely to include the additional language specified in this bill. COMMENTS 1)Purpose . According to the author, "AB 1021 would require greater transparency in the fiscal analysis of initiatives by adding advisories to the fiscal impact statement for petitions and the ballot pamphlet if the measure does not provide adequate funding or corresponding reductions to fund implementation. The democratic process requires transparency and an honest evaluation of the cost of government. Accordingly, this bill aims to give voters a better understanding of the fiscal impact of initiatives proposed for or placed on a ballot." 2)Related Legislation . AB 65 (Gatto), which passed the Assembly, requires that the top five contributors of $50,000 or more to each committee supporting or opposing a proposition be listed in the state ballot pamphlet. AB 732 (Buchanan), also on today's committee agenda, requires that, for state bond measures, an explanatory table be included for each measure summarizing the LAO's estimate of the measure's fiscal impact. 3)Amendments proposed by the author simply clarify language in the statement to be included in the voter pamphlet. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081 AB 1021 Page 3