BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                  SB 202
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          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 








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            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









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