BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1100 (Low) - Ballot initiatives: filing fees ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 19, 2015 |Policy Vote: E. & C.A. 3 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 29, 2015 |Consultant: Maureen Ortiz | | | | ----------------------------------------------------------------- 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 AB 1100 (Low) Page 1 of ? 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 AB 1100 (Low) Page 2 of ? 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. -- END -- AB 1100 (Low) Page 3 of ?