BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1100 (Low) - Ballot initiatives:  filing fees
          
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          |Version: June 19, 2015          |Policy Vote: E. & C.A. 3 - 2    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: June 29, 2015     |Consultant: Maureen Ortiz       |
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          This bill does not meet the criteria for referral to the  
          Suspense File.




          


          Bill  
          Summary:  AB 1100 increases the filing fee for submitting a  
          proposed ballot initiative or referendum to the Attorney General  
          (AG) for preparation of a circulating title and summary from  
          $200 to $2,500.


          Fiscal  
          Impact:  

           Potentially significant increase in filing fee revenue  
            (General Fund)

          The increase in revenue will be dependent on the number of  







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          initiatives filed, and the number of those which eventually  
          qualify for the ballot (which results in a refund of the filing  
          fee).


        Background:1)  Existing law requires the proponents of a proposed initiative  
          or referendum measure to submit the text of the proposed measure  
          to the Attorney General with a written request that a  
          circulating title and summary of the measure be prepared, prior  
          to circulating the petition for signatures.  Proponents of any  
          initiative measure must, at the time of submitting the text of  
          the proposed initiative measure to the AG, pay a fee of two  
          hundred dollars ($200), which is 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.  If the measure does  
          not qualify within that period, the fee is paid into the state's  
          General Fund. 

          The AG upon receipt of the text of a proposed initiative  
          measure, and after the public review period, prepares a  
          circulating title and summary of the chief purposes and points  
          of the proposed measure.  The circulating title and summary may  
          not exceed 100 words. 


          Proposed Law:  
            AB 1100 increases the fee for submitting a proposed ballot  
          initiative or referendum to the Attorney General for preparation  
          of a circulating title and summary from $200 to $2,500.  The  
          bill requires the AG to adjust the fee in January of every  
          odd-numbered year to reflect any increase in the Consumer Price  
          Index, rounded to the nearest one hundred dollars.


          Staff  
          Comments:  Before circulating a state initiative measure,  
          initiative proponents must first submit their proposal to the  
          AG's office.  Upon receipt of the proposed measure by the AG, a  
          30-day public comment period begins.  Additionally, the  
          proponent(s) may amend the initiative until close of business on  
          the 35th calendar day after receipt.  Before the AG can issue  
          the circulating title and summary, the AG must request the  
          preparation of a fiscal impact report prepared jointly by the  








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          Department of Finance (DOF) and the Legislative Analyst. These  
          agencies have 50 calendar days following receipt of the proposed  
          measure from the AG to prepare the fiscal estimate. 

          Within 15 calendar days following the receipt of the fiscal  
          impact report, the AG is required to issue an official  
          circulating title and summary to the proponent(s).  A copy of  
          the official circulating title and summary is provided to the  
          SOS and the Legislature on the official summary date, the same  
          date it is sent to the proponent(s). 

          Under current law, proponents must pay a $200 filing 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) 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.

          The existing fee was established in 1943 and has never been  
          increased.  When adjusted for inflation that $200 is now  
          somewhere between $2,500 and $3,000, depending on whose rate of  
          inflation figures are used. The purpose of the $200 filing fee  
          is two-fold. Primarily, the fee exists to discourage the  
          submission of frivolous proposals; secondly, the fee is intended  
          to defray some of the administrative costs to the state  
          associated with processing initiatives. 

          According to information obtained from the AG's office, between  
          2009 and 2013 there were 315 proposed initiative measures  
          submitted for a circulating title and summary.  Of those 315  
          initiative proposals 27 qualified for the ballot.  Additionally,  
          the AG 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.  



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