BILL ANALYSIS Ķ SB 202 Page 1 SENATE THIRD READING SB 202 (Hancock) As Introduced February 8, 2011 Majority vote SENATE VOTE :23-14 ELECTIONS 5-2 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Fong, Bonilla, Gatto, |Ayes:|Fuentes, Blumenfield, | | |Mendoza, Swanson | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Logue, Valadao |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Increases the fee to submit a proposed state ballot initiative to the Attorney General (AG), for preparation of the circulating title and summary, from $200 to $2,000. EXISTING LAW : 1)Establishes a process for the AG to prepare a summary of the chief purpose and points of a proposed state measure. Requires the AG to provide a copy of the title and summary to the Secretary of State (SOS) within 15 days after receipt of the final version of a proposed initiative measure, or if a fiscal estimate or opinion is to be included, within 15 days after receipt of the fiscal estimate or opinion prepared by the Department of Finance (DOF) and the Joint Legislative Budget Committee (JLBC). 2)Requires proponents of an initiative measure, at the time of submitting the text of the proposed measure to the AG, to pay a fee of $200, which shall be placed in a trust fund in the office of the Treasurer and refunded to the proponents, if the measure qualifies for the ballot within two years from the date the summary is furnished to the proponents. Provides that if the measure does not qualify within that period, the SB 202 Page 2 fee shall be immediately paid into the General Fund of the state. FISCAL EFFECT : According to the Assembly Appropriations Committee, minor annual General Fund revenue increase in the range of $100,000, based on an average of about 65 proposed initiatives submitted annually to the AG in the previous decade. The increased cost to initiative proponents may reduce the number of proposals submitted, which would both reduce these revenues and the AG's costs associated with this workload, resulting in a net General Fund savings. (In 2007-08, for example, the AG's costs for this work exceeded $400,000, while filing fee revenue totaled only $22,800.) COMMENTS : According to the author, "For the first time in 68 years, SB 202 will adjust the initiative filing fee in order to more accurately reflect the actual cost of the initiative title-and-summary process on the Attorney General's office, as well as to discourage frivolous filings. Taking into account inflation, the $2000 filing fee is close to - but still less than - the level originally set in 1943, and if the initiative qualifies, then the fee will be completely refunded. This bill protects taxpayer money by discouraging abuse of the initiative process at the expense of the state." AB 1832 (Saldaņa) of 2010 was similar to this bill, but raised the filing fees incrementally. Governor Schwarzenegger vetoed AB 1832. In his veto message, the Governor argued that although the $200 filing fee may not be sufficient to deter frivolous initiative filings, he "cannot support increasing the fee ten-fold," and he stated that "Ũw]hile well-funded special interest groups would have no problem paying the sharply increased fee, it will make it more difficult for citizen groups to qualify an initiative." AB 436 (Saldaņa) of 2009 was similar to AB 1832 and also was vetoed by Governor Schwarzenegger. Analysis Prepared by : Lori Barber / E. & R. / (916) 319-2094 FN: 0001894 SB 202 Page 3