BILL ANALYSIS Ó AB 1100 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1100 (Low) - As Amended March 24, 2015 ----------------------------------------------------------------- |Policy |Rules |Vote:|11 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Elections and Redistricting | |5 - 2 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill 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 $8,000. AB 1100 Page 2 FISCAL EFFECT: According to the AG's office, between 2009 and 2013 there were 315 proposed initiative measures submitted for a circulating title and summary, of which only 27 qualified for the ballot. The AG's estimates that an average of 56 hours of staff time is accumulated in the preparation of each title and summary. Although the current fee is $200, the average proposed initiative will cost the state more than $8,000. Any costs for preparing a title and summary that exceed the $200 fee are ultimately covered by the General Fund. This significant fee increase could greatly reduce the number of initiative proposals submitted for title and summary, and thus reduce the AG's workload in this area, in addition to that of the Legislative Analyst's Office and the Department of Finance, which jointly prepare a fiscal estimate of proposed initiatives. COMMENTS: 1)Purpose. According to the author, "The $200 fee was set in 1943 to cover the administrative costs by the Attorney General (AG) to analyze a proposal and prepare a title and summary. According to the Consumer Price Index, the value of $200 today is the equivalent of $14.80 in 1943 dollars. [In other words, $200 in 1943 equates to about $2,700 today.] It has been 72 years since this aspect of the initiative process has been updated. This proposal is long overdue." 2)Background. Under current law proponents must pay a $200 fee to the AG, a fee that is placed in a trust fund in the office of the Treasurer and is refunded in full to the proponent(s) AB 1100 Page 3 if the initiative qualifies for the ballot within two years after the summary has been issued to the proponents. If the measure fails to qualify the fee is immediately paid into the General Fund of the state. 3)Opposition. The California Taxpayers Association in part asserts that the fee imposes an illegal tax, arguing that "A true filing fee should cover the administrative costs provided by the attorney general's office necessary to process and file an initiative measure." (As discussed above, the increased fee amount would do just that.) 4)Prior Legislation. AB 1832 (Saldana) of 2010, was similar to this bill, but raised the filing fees incrementally. Governor Schwarzenegger vetoed AB 1832, arguing that it would make it more difficult for citizen groups to qualify an initiative. AB 436 (Saldana) of 2009 was similar to AB 1832 and also was vetoed by Governor Schwarzenegger. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 1100 Page 4