BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   August 27, 2014

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     ACA 6 (Gatto) - As Amended:  August 21, 2014
           
               RE-REFERRED TO COMMITTEE PURSUANT TO ASSEMBLY RULE 77.2

          PRIOR COMMITTEE CONSIDERATION:

          ELECTIONS           5-2         APPROPRIATIONS      12-5        
                                           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Bocanegra, Bonta,   |Ayes:|Gatto, Bocanegra,         |
          |     |Hall, Weber               |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Hall,      |
          |     |                          |     |Ammiano, Pan, Quirk,      |
          |     |                          |     |Weber                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Donnelly, Logue           |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Linder, Wagner  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUBJECT  :   Constitutional amendments: voter approval.

           SUMMARY  :   Requires a measure that amends or revises the state  
          constitution to receive 55% of the vote in order to be approved,  
          unless the measure reverses a previously adopted constitutional  
          amendment or revision, as specified.  Specifically,  this  
          constitutional amendment  :  

          1)Requires a proposed amendment or revision of the state  
            constitution, except as provided below, to receive a minimum  
            of 55% of votes cast thereon in support in order to be  
            approved.

          2)Provides that a proposed amendment or revision of the state  
            constitution may be approved by a majority of the votes cast  
            thereon if the sole effect of that amendment or revision is to  
            reverse one or more of the changes made to the constitution by  
            a previous amendment or revision that, prior to the operative  
            date of this measure, was adopted by a majority of the votes  
            cast thereon.







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           EXISTING LAW  provides that a constitutional amendment or  
          revision shall take effect if approved by a majority of votes  
          cast thereon.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, one-time General Fund costs of about $220,000 to  
          include an analysis of this measure, and arguments for and  
          against the measure, in the state voter information guide.

           COMMENTS  :   

           1)Initiatives vs. Ballot Measures  :  Although the terms  
            "initiative" and "ballot measure" are sometimes used  
            interchangeably, the two terms are not synonymous.  An  
            "initiative" is a measure that qualifies to appear on the  
            ballot through the presentation of petitions containing the  
            signatures of a specified number of voters.  All initiatives  
            that qualify for the ballot are "ballot measures."  However,  
            the term "ballot measure" includes not only initiatives, but  
            also includes referenda, recall measures, and measures placed  
            on the ballot by the Legislature.

          Proposals to amend the California Constitution can be placed on  
            the ballot in two different ways.  Voters may propose to amend  
            the constitution through an initiative measure by presenting  
            the Secretary of State with a petition that sets forth the  
            text of the proposed amendment to the Constitution that is  
            certified to have been signed by electors equal in number to  
            8% of the votes for all candidates for Governor at the last  
            gubernatorial election. Constitutional amendments placed on  
            the ballot in this manner are "initiative constitutional  
            amendments."  Alternately, the Legislature may place a  
            proposed amendment to or revision of the Constitution on the  
            ballot by a two-thirds vote of each house.  Constitutional  
            amendments that are placed on the ballot in this manner are  
            "legislative constitutional amendments."

           2)Prior Committee Consideration of This Measure  :  In May of last  
            year, this committee considered and approved this measure on a  
            5-2 vote.  At that time, this measure would have required  
            initiative constitutional amendments, but not legislative  
            constitutional amendments, to receive at least 55% of the vote  
            in order to be approved.  Subsequent to the committee's  
            approval of this measure, it was amended on the Assembly Floor  







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            to increase the vote requirement for legislative  
            constitutional amendments, in addition to affecting the vote  
            threshold for initiative constitutional amendments.  After the  
            adoption of those amendments, this measure was re-referred to  
            this committee for further consideration pursuant to Assembly  
            Rule 77.2.  
           
           3)Purpose of the Measure  :  According to the author:

               ACA 6 requires any constitutional amendment that adds  
               any new sections pass with a 55% supermajority in  
               order to achieve parity with both the California  
               legislative threshold and come close to the US  
               Constitutional threshold. The straight repeal of any  
               sections, however, would occur by the same threshold  
               that was required to insert that language into the  
               Constitution.

               It is worth noting that supermajority thresholds have  
               already been approved by voters. The legendary  
               Proposition 13 included a provision that demanded a  
               2/3 vote for certain taxes. It is not unreasonable to  
               suggest that we put the process of amending the  
               constitution on a higher pedestal-just as we do with  
               new taxes. Both are highly important to the people of  
               California and should not be taken lightly.

               ACA 6 is a reasonable measure that seeks to make  
               California's constitutional amendment process more  
               reflective of the national constitutional amendment  
               process by placing a higher threshold for voters'  
               consideration and passage of? constitutional  
               amendments to protect the document's sacredness. 

           4)Constitutional Amendment History  :  Since 2004, California  
            voters have voted on 99 ballot measures.  Of those 99  
            measures, 47 proposed to amend the state constitution.  During  
            that time, about 45% of ballot measures that amended the  
            constitution were approved, compared to 48% of ballot measures  
            that did not propose to amend the constitution.  
           
           5)Supermajority Vote Requirement  :  Currently, all state ballot  
            measures require a simple majority to be approved by the  
            voters, regardless of the changes to state law made by the  
            measure.  If this constitutional amendment is approved by  







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            voters, it would mark the first time that any measure that  
            appears on the statewide ballot would require more than a  
            simple majority to be approved by voters.

          Among the high profile ballot measures that passed and amended  
            the constitution, but did not receive 55% of the vote, are:  
            Proposition 98 of 1988 (school funding); Proposition 140 of  
            1990 (term limits); Proposition 209 of 1996 (affirmative  
            action); Proposition 8 of 2008 (same-sex marriage);  
            Proposition 11 of 2008 (redistricting commission); and  
            Proposition 14 of 2010 (top two primary). 

           6)Other States  :  According the National Conference of State  
            Legislatures, all states except Delaware require voter  
            approval in order to adopt a proposed amendment to the state  
            constitution.  While almost all states require a supermajority  
            vote of the legislature in order to propose a constitutional  
            amendment to the voters, most states permit the voters to  
            adopt a proposed constitutional amendment by a simple majority  
            vote.

          In fact, just one state-Florida-requires a supermajority vote  
            for the approval of any constitutional amendment.  In 2006,  
            Florida voters approved a constitutional amendment that  
            requires any future amendment to the Florida Constitution,  
            whether put on the ballot by initiative or by the Legislature,  
            to be approved by 60% of voters in order to take effect.   
            Additionally, any constitutional amendment that imposes a tax  
            or fee not in place in November 1994 must receive a two-thirds  
            vote in order to pass.

          Other states do require a supermajority vote to approve a  
            constitutional amendment in certain circumstances, however.   
            In Illinois, constitutional amendments must pass by  
            three-fifths of those voting on the measure or by a majority  
            of those voting in the election.  Massachusetts, Mississippi,  
            and Nebraska all permit initiative constitutional amendments  
            to pass on a majority vote, provided that the total number of  
            votes cast on the initiative equals a specified threshold  
            (ranging from 30% to 40%) of the total votes cast in the  
            election.  Constitutional amendments proposed by the  
            Legislature in these three states require a simple majority to  
            pass.

          Nevada does not require a supermajority vote on constitutional  







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            amendments, but initiative constitutional amendments must  
            receive a majority vote at two consecutive general elections  
            in order to pass.  Constitutional amendments that are proposed  
            by the Legislature, however, do not need to be approved at two  
            consecutive elections.

           7)Status Quo Bias  ?  Under a provision of this measure, a  
            previously approved constitutional amendment that required a  
            majority vote of the people at the time that it was adopted  
            could be reversed by a majority vote.  That provision ensures  
            that a majority of the voters today can reverse an action that  
            was approved by a slim majority of voters at some point in the  
            past.  

          Any change to a previously adopted constitutional amendment  
            other than a reversal, however, would require 55% of the vote  
            in order to be approved.  For example, Proposition 98, dealing  
            with school funding, received 50.7% of the vote at the 1988  
            statewide general election.  While this measure would allow  
            Proposition 98 to be reversed by a simple majority of voters,  
            a proposal to change the school funding formulas contained in  
            Proposition 98 would require 55% of the vote.

          Similarly, Proposition 11, dealing with redistricting, received  
            50.9% of the vote in 2008.  Although this measure would allow  
            Proposition 11 to be reversed by a majority vote, a proposal  
            to change the criteria used by the Citizens Redistricting  
            Commission when creating Legislative, Congressional, and Board  
            of Equalization districts would require 55% of the vote.  If  
            voters in the future wished to retain the major elements of  
            Proposition 11 while making changes to certain aspects of that  
            measure, it would require 55% of the vote to approve such  
            changes, even though those elements were added to the  
            constitution by a measure that received less than 55% of the  
            vote.  In essence, this measure would permit the policy  
            preferences of less than 51% of the voters in 2008 to prevail  
            over the policy preferences of 54.9% of the voters at a future  
            election.  

          Notwithstanding the fact that this measure allows previously  
            adopted constitutional amendments to be reversed by a majority  
            vote, by making it more difficult to amend previously adopted  
            constitutional amendments, this measure nonetheless may  
            prejudice the constitution in favor of policies that were  
            adopted by a slim majority of the voters in prior elections.  







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           8)Arguments in Opposition  :  In opposition to this measure, the  
            Howard Jarvis Taxpayers Association writes:

               ACA 6 represents the gravest attack to the initiative  
               process in years.  It strips away the ability of the  
               people to engage in the democratic process when the  
               Legislature refuses to confront important issues,  
               including increased property taxes. Such was the case  
               in 1978 prior to the passage of Proposition 13, when  
               seniors on fixed incomes were getting foreclosed on  
               their homes because they couldn't pay the property  
               taxes.  Thousands were able to continue to live out  
               the American Dream as a direct result of the  
               initiative process. 

               As drafted, ACA 6 makes it harder for individuals to  
               engage in this process.  It could lead to majority  
               vote attacks to eliminate the entirety of Proposition  
               13, or create a split roll commercial property tax.   
               Any attempt to restore or protect against future  
               loopholes created by the legislative or judicial  
               branches of government would require a 55% vote. Under  
               such a scenario, Proposition 26, a 2010 constitutional  
               amendment would not have been approved.

               The language of ACA 6 is plagued by the same ambiguity  
               as previous versions.  Under this language, a brand  
               new provision added to the constitution (which should  
               need 55% approval under this bill) could be passed  
               with a simple majority if lawyers convinced a court  
               that the sole effect of the new language was to  
               "reverse changes made" to the Constitution by a  
               previous amendment.  For example, the new provision  
               need only start with the phrase, "Notwithstanding  
               Article XIII A ..."  In this way, the new provision  
               could do much more than simply delete an existing  
               provision of the constitution (like Proposition 13)  
               and could replace it with a whole new policy or  
               program.  
                
           9)Previous Legislation  :  ACA 11 (Gatto) of the 2011-12  
            Legislative Session, would have required initiative  
            constitutional amendments, but not legislative constitutional  
            amendments, to receive 55% of the vote in order to be  







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            approved, except as specified.  ACA 11 was approved by this  
            committee on a 4-2 vote, but was held on the Assembly  
            Appropriations Committee's suspense file.

          ACA 10 (Gatto) of the 2011-12 Legislative Session, would have  
            required an initiative measure that amends the state  
            constitution to receive 55% of the vote in order to be  
            approved, except as specified, among other provisions.  ACA 10  
            was approved by this committee on a 4-1 vote, but failed  
            passage on the Assembly Floor.

            ACA 9 (Gatto) of the 2011-12 Legislative Session, would have  
            required an initiative that would increase the current vote  
            requirement for an action by either the electors or by the  
            Legislature, or would impose an extraordinary vote requirement  
            for the amendment of an initiative statute by the Legislature  
            without approval by the electors, to itself receive the same  
            affirmative vote percentage in order to be approved by the  
            electors.  ACA 9 was never voted on in this committee.  

             As introduced, ACA 21 (Charles Calderon) of the 2009-10  
            Legislative Session, would have required an initiative measure  
            that amended the state constitution to receive a two-thirds  
            vote in order to be approved.  ACA 21 was never voted on in  
            this committee in that form, but instead was amended to  
            address another issue.  
             
           10)Approval of Voters  :  As a constitutional amendment, this  
            measure requires the approval of the voters to take effect.





















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           REGISTERED SUPPORT / OPPOSITION  :   

           Support                    
           
          None on file.

           Opposition 
           
          American Council of Engineering Companies California
          Associated General Contractors of California
          Association of California Life & Health Insurance Companies
          California Apartment Association
          California Association of Bed & Breakfast Inns
          California Business Properties Association
          California Business Roundtable
          California Chamber of Commerce
          California Hotel & Lodging Association
          California Manufacturers and Technology Association
          California Taxpayers Association
          Howard Jarvis Taxpayers Association
          National Federation of Independent Business
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094