BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SCA 6 (DeSaulnier) - Initiative Measures.
          
          Amended: As Introduced          Policy Vote: E&CA 3-1
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Maureen Ortiz
          
          SUSPENSE FILE.
          
          
          Bill Summary:  SCA 6, if approved by the voters, will prohibit  
          future initiatives from being placed on the ballot if the  
          measure would result in a net increase in state or local  
          government costs as determined by the Legislative Analyst and  
          the Director of Finance. 

          Fiscal Impact: 
              One time ballot printing/mailing costs of approximately  
              $198,000 - $264,000 depending on the number of pages and  
              based on an estimated cost per page of $66,000. (General)
              Unknown potentially significant future savings in state and  
              local government costs.

          The actual costs could be higher or lower depending on the  
          length of the title, summary, context, proponents and opponents  
          arguments, as well as the overall size of the ballot pamphlet.   
          Larger ballots generally result in less printing and mailing  
          costs per page. To the extent that initiatives that would result  
          in significant costs will not be permitted to be placed on a  
          ballot, there may be significant future savings to the state and  
          to local governments. 

          Background:  Existing law requires the Attorney General (AG),  
          upon receipt of a draft of a petition for a proposed initiative  
          measure, to draft a title and summary.  Additionally, if the AG  
          determines that a proposed measure would affect state or local  
          revenues or expenditures, he or she must include in the title  
          and summary the estimate of the amount of change in state or  
          local revenue or costs as jointly prepared by the Department of  
          Finance and the Joint Legislative Budget Committee.

          The California Constitution places numerous restrictions on the  
          content of initiative measures as follows:








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          -   An initiative measure embracing more than one subject may  
          not be submitted to the electors or have any effect.
          -  An initiative measure may not include or exclude any  
          political subdivision of the state from the application or  
          effect of its provisions based upon approval or disapproval of  
          the initiative measure, or based upon the casting of a specified  
          percentage of votes in favor of the measure by the electors of  
          that political subdivision.
          -  An initiative measure may not contain alternative or  
          cumulative provisions wherein one or more of those provisions  
          would become law depending upon the casting of a specified  
          percentage of votes for or against the measure.
          -  No initiative that names any individual to hold any office,  
          or names or identifies any private corporation to perform any  
          function or to have any power or duty may be submitted to the  
          electors.

          Over the years, there have been a number of approved  
          propositions which have guaranteed that a certain portion of  
          General Fund spending be dedicated to a specific purpose.  These  
          measures restrict the Legislature's ability to alter the  
          relative shares of General Fund spending provided to program  
          areas in any given year.  For instance, Proposition 98 of 1988  
          provided for a minimum level of total spending (General Fund and  
          local property taxes combined) on K-14 education in any given  
          year.  The required General Fund contribution is roughly 40  
          percent of the state's budget.  Proposition 49 of 2002 required  
          that the state spend a specified amount on after-school  
          programs. 

          Currently, eleven states have restrictions on the use of the  
          initiative with regard to appropriations and funding mechanisms.

          Proposed Law:  SCA 6 will prohibit an initiative measure that  
          would result in a net increase in state or local government  
          costs, other than costs attributable to the issuance, sale or  
          repayment of bonds, from being submitted to the electors or  
          having any effect unless and until the Legislative Analyst and  
          the Director of Finance jointly determine that the initiative  
          measure provides for additional revenues in an amount that meets  
          or exceeds the net increase in costs. 









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          Staff Comments: SCA 6 is similar to SCA 4 (DeSaulnier) of 2011  
          and SCA 14 (Ducheny) of 2009 - both of which failed passage on  
          the Senate Floor, and to ACA 6 (Gatto) of 2011 which failed  
          passage on the Assembly floor.