BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1100


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1100 (Low) - As Amended March 24, 2015


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          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.









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          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)  








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            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


















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