BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  June 23, 2009

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                   ACA 13 (Hernandez) - As Amended:  June 16, 2009
           
          SUBJECT  :  Initiatives.

           SUMMARY  :  Establishes an indirect initiative process.   
          Specifically,  this measure  :  

          1)Requires the Secretary of State (SOS) to transmit an  
            initiative measure to the Legislature prior to the  
            certification of the signatures of electors once signatures  
            have been gathered from the following number of voters:

             a)   A number of signatures equal to five percent of the  
               votes cast for candidates for Governor at the last  
               gubernatorial election in the case of a statute; or,

             b)   A number of signatures equal to eight percent of the  
               votes cast for candidates for Governor at the last  
               gubernatorial election in the case of an amendment to the  
               state constitution.

          2)Requires an initiative measure that is transmitted by the SOS  
            to the Legislature to be assigned to the appropriate  
            committees in the Senate and Assembly for analysis.  Requires  
            those committees to commence joint public hearings on the  
            subject of the initiative within 20 legislative session days.

          3)Permits the Legislature to enact into law any initiative  
            measure transmitted to it pursuant to this measure by bill if  
            the initiative measure is a statute only.  Provides that if  
            the bill is enacted as a statute and the initiative proponents  
            accept any amendments of the Legislature and so informs the  
            SOS, the initiative measure shall not be submitted to the  
            electors. 

          4)Permits the Legislature to amend any initiative in a manner  
            consistent with the initiative prior to the appearance of that  
            initiative on the ballot by the adoption of a concurrent  
            resolution.  

          5)Permits the Legislature to return a proposed initiative  








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            measure to the SOS to be placed on the ballot through the  
            adoption of a concurrent resolution.  Requires a majority vote  
            of the Legislature to adopt such a concurrent resolution for a  
            statutory initiative, and requires a two-thirds vote of the  
            Legislature to adopt such a concurrent resolution for an  
            initiative that amends the state constitution.

          6)Provides that if the Legislature does not return the  
            initiative measure to the SOS within 30 legislative session  
            days after the measure is transmitted to the Legislature, the  
            SOS shall submit the measure to the electors only if the  
            measure is certified, on or after that deadline, to have been  
            signed by electors equal in number to 10 percent in the case  
            of a statute, and 16 percent in the case of an amendment to  
            the Constitution, of the votes for all candidates for Governor  
            at the last gubernatorial election.  Requires that the  
            proponents of the initiative measure be provided the  
            opportunity subsequent to that deadline, as specified by  
            statute, to gather additional signatures of electors.

          7)Provides that, for the purposes of this constitutional  
            amendment, "legislative session day" means a day on which the  
            Members of both houses of the Legislature are required to be  
            in Sacramento to attend a session of the Legislature.

           EXISTING LAW  :

          1)Permits voters to propose statutes or amendments to the  
            Constitution by initiative.  Requires an initiative petition  
            to contain a number of signatures equal to five percent of the  
            votes cast for candidates for Governor at the last  
            gubernatorial election in the case of an initiative that  
            amends or enacts a statute for that initiative to appear on  
            the ballot.  Requires an initiative petition to contain a  
            number of signatures equal to eight percent of the votes cast  
            for candidates for Governor at the last gubernatorial election  
            in the case of an amendment to the state constitution for that  
            initiative to appear on the ballot.

          2)Requires the SOS to submit statewide initiative measures to  
            the voters at the next general election held at least 131 days  
            after they qualify or at any special statewide election held  
            prior to that general election.

          3)Permits the Governor to call a special statewide election on  








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            any initiative measure.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

           1)Purpose of the Constitutional Amendment  :  According to the  
            author:

               The initiative process was created in an attempt to prevent  
               special interest/corruption from influencing state law and  
               policy.  The process was to give the Californian voter more  
               power, more influence, and a stronger voice.  

               However, over time the looseness of the procedure for  
               placing initiatives on the ballot has allowed loopholes for  
               special interest groups to gain influence, the exact  
               opposite of the initiative process' original intent.  As a  
               result, the system is now corrupted.  Instead of giving  
               power to the voter, the process often results in California  
               voters feeling overwhelmed and confused by measures  
               included on the ballot.  A recent PPIC report released  
               December 2008 revealed that a majority (63%) of California  
               voters felt they could not adequately deal with the many  
               proposals typically included in any given election.  

               This report also revealed compelling evidence that  
               Californians favor some type of reform to the current  
               initiative process.  In fact, the report found that  
               California voters support proposals reforming the  
               time/duration in which the Legislature and the initiative's  
               proponent(s) could try to reach a compromise solution  
               before the initiative reaches the ballot.  

               Voters also support adopting a standard system of review  
               and revision of all proposed initiatives-this process would  
               address or avoid potential legal issues and drafting errors  
               before the measure is placed before voters.  This topic was  
               highlighted in last year's Center for Governmental Studies  
               Report, "Democracy by Initiative: Shaping California's  
               Fourth Branch of Government."  The CGS report stressed the  
               importance of implementing a formal process for drafting  
               and revising initiative measures-this will ensure quality  
               control of any measure placed in front of voters.  Far too  
               often, initiatives placed on the ballot are vague,  








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               contradictory, and sometimes even unconstitutional.  There  
               have been countless instances of unforeseen consequences or  
               unexpected interpretations due to ambiguous language of a  
               voter-approved ballot measure.  Proposition 13 (1978), a  
               measure relating to property taxes, illustrates how poorly  
               drafted language creates an array of unforeseen problems.  

               ACA 13, to address this issue, would provide the  
               Legislature with the ability to thoroughly analyze and, if  
               necessary, amend an initiative measure before it is placed  
               on the ballot.  If proponents accept the Legislature's  
               amendments to their ballot measure, proponents may withdraw  
               their initiative from the ballot and allow the Legislature  
               to enact their proposal.

               If proponents accept legislative amendments and decide to  
               withdraw their initiative measure from the ballot, the  
               Legislature would adopt the measure through a floor vote in  
               both houses.  Any measure proposing a new statute or  
               changing a current statute must be approved with a majority  
               vote from members in both houses.  A measure proposing an  
               amendment to the Constitution must be approved with a  
               two-thirds vote from members in both houses.  

               Should the proponents not agree to the Legislature's  
               proposed amendments, the proponents may place the measure  
               on the next statewide ballot only if the initiative measure  
               is certified to have been signed by a specified percentage  
               of electors; 10% in the case of a proposed statute, and 16%  
               in the case of a proposed constitutional amendment.  

           2)Indirect Initiative Background  :  According to the National  
            Conference of State Legislatures (NCSL), eight states  
            currently offer some form of an "indirect" initiative process.  
             Maine, Michigan, Nevada, Ohio, Utah, and Washington provide  
            for an indirect initiative process for statutory initiatives  
            only; Mississippi provides the process only for constitutional  
            amendment initiatives while Massachusetts includes both  
            statutory and constitutional amendment initiatives.

          In the indirect initiative process, a proposed initiative is  
            referred to the legislature after proponents have gathered the  
            required number of signatures.  The legislature has the option  
            to enact, defeat or amend the measure. Depending on the  
            legislature's action, the proponents may continue to pursue  








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            placement on the ballot for a popular vote.  In three states  
            (Massachusetts, Ohio and Utah), proponents must gather  
            additional signatures to place the measure on the ballot; in  
            the others, it automatically goes to the ballot.

          Alaska's and Wyoming's initiative processes are sometimes cited  
            as indirect. However, instead of requiring that an initiative  
            be submitted to the legislature for action, they require only  
            that an initiative cannot be placed on the ballot until after  
            a legislative session has convened and adjourned, thus  
            providing the legislature with the opportunity to address the  
            issue if it so chooses.

          Two states - Utah and Washington - offer both the direct and  
            indirect initiative process; proponents have the option of  
            choosing either.  In Utah, the initial signature requirement  
            is lower for the indirect process.  This serves as an  
            incentive for proponents to choose the indirect route and thus  
            incorporate the legislature into the process.  Qualifying an  
            initiative directly to the ballot requires signatures equal to  
            10 percent of the votes cast for governor in the last  
            election; presenting an indirect initiative to the legislature  
            requires signatures equal to 5 percent of the votes cast for  
            governor in the last election. However, if the indirect  
            initiative is rejected by the legislature, proponents must  
            gather additional signatures equal to 10 percent of the votes  
            cast for governor, creating a total signature threshold for  
            indirect initiatives that is higher than that for direct  
            initiatives.  As a consequence, use of Utah's indirect  
            initiative is significantly lower than use of the direct  
            method.

          California had an indirect initiative process until 1966.  It  
            was available in addition to the direct process, and  
            proponents were permitted to choose the process they  
            preferred.  However, the indirect option was used successfully  
            only once, and voters approved its abolition in 1966.

          The NCSL further states that the indirect initiative is  
            frequently offered as an improvement over the direct  
            initiative because it allows for legislative analysis,  
            committee hearings and floor debate.  Legislative deliberation  
            and debate on the issue itself and its effect on other  
            existing policies may result in an improved initiative  
            proposal because unintended consequences and errors may come  








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            to light.

          Pitfalls exist in the indirect initiative process, however,  
            which prevent it from being a panacea to the problems of the  
            initiative.  The main argument against the indirect initiative  
            is that, where the process is currently offered, legislatures  
            rarely take up the initiative proposal and, when they do, they  
            almost always reject initiative proposals.  Rarely do they  
            engage in negotiation with initiative proponents and seek to  
            craft a compromise.  Most often, indirect initiatives are  
            rejected by the legislature and end up on the ballot for a  
            popular vote; the indirect process has done little but prolong  
            the initiative process.

           3)Speaker's Commission on the California Initiative Process  :  In  
            2000, then-Assembly Speaker Robert M. Hertzberg created a  
            commission on the California initiative process.  The goal of  
            the Commission was to examine the initiative process and  
            recommend changes to make the process more responsive to voter  
            concerns.  The Commission issued its final report in January  
            2002.  Among the recommendations proposed by the Commission  
            was the creation of an indirect initiative process that would  
            allow the Legislature to enact an initiative into law, with  
            the proponents consent, thereby removing the need for the  
            initiative to go to the ballot.

          In stating the desirability of creating an indirect initiative  
            process, the Commission noted that when drafting problems are  
            discovered in an initiative being circulated, there is no  
            process for correcting such mistakes.  The Commission's report  
            argued that allowing the Legislature to review initiative  
            measures, and make minor changes or suggestions for changes to  
            such measures, could reduce technical problems or unintended  
            consequences in initiative measures.

          There is one key difference, however, between this proposal and  
            the recommendation by the Commission for the creation of an  
            indirect initiative process.  While this measure provides that  
            all initiatives would be subject to Legislative review, the  
            Commission recommended that the indirect initiative process be  
            voluntary.  
           
           4)Should Initiative Proponents Have the Final Say  ?  This measure  
            gives the proponents of an initiative measure the  
            unconditional authority to allow an initiative to be withdrawn  








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            from the ballot by endorsing a bill that has been approved by  
            the Legislature that the proponents determine is consistent  
            with the intent of the initiative measure.

          It is unclear whether the proponents of an initiative measure  
            should have this unconditional authority.  The initiative  
            process is the power of the electors to propose statutes and  
            amendments to the Constitution, and to approve or reject them.  
             The hundreds of thousands of voters who signed petitions to  
            place the initiative measure on the ballot would have no  
            recourse if they did not agree with the proponents that the  
            bill approved by the Legislature was consistent with the  
            intent of the initiative measure.

          However, such a situation is already possible under existing  
            law.  It is not uncommon for initiative proponents to collect  
            more than enough signatures than necessary to qualify an  
            initiative for the ballot, but to delay turning in some of  
            those signatures in the hopes of prompting the Legislature to  
            adopt a bill or constitutional amendment that is consistent  
            with the purposes of the initiative measure.  If the  
            Legislature fails to act, the proponents submit the signatures  
            and the initiative measure qualifies for the ballot.  If the  
            Legislature adopts a bill or constitutional amendment that is  
            consistent with the purposes of the initiative measure, the  
            proponents do not submit the remaining signatures, and the  
            initiative measure fails to qualify for the ballot.  In this  
            scenario, which already occurs under existing law, those  
            voters who signed petitions to place the initiative measure on  
            the ballot have no recourse if they do not agree with the  
            proponents that the bill or constitutional amendment approved  
            by the Legislature was consistent with the intent of the  
            initiative measure.

           5)Amendments Consistent with the Intent of the Measure  :  This  
            constitutional amendment allows the Legislature to amend any  
            initiative measure before it appears on the ballot, provided  
            that such amendments are "consistent with the intent of the  
            measure."  It is unclear, however, who would make a  
            determination about whether amendments adopted by the  
            Legislature were consistent with the intent of the measure.   
            If such a determination were left to the Legislature, it is  
            unclear what recourse the initiative proponents would have if  
            they disagreed with the determination that the amendments were  
            consistent with the initiative.  The committee may wish to  








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            consider amending this measure to allow amendments that are  
            consistent with the initiative only if the proponents of the  
            initiative measure agree with those amendments.

           6)Doubling the Signature Threshold  :  For any initiative measure  
            that is not returned by the Legislature to the SOS under the  
            provisions of this constitutional amendment, the net effect of  
            this measure will be to double the number of signatures  
            necessary for that initiative measure to appear on the ballot.  
              
           
           7)Technical Issue :  Recent amendments to this measure added a  
            cross reference to a portion of the measure to make it clear  
            that the Legislature had to act within 30 legislative days on  
            any statutory initiative.  However, those amendments did not  
            make a corresponding cross reference in the section of the  
            measure dealing with initiative constitutional amendments.  To  
            correct this inconsistency, committee staff recommends the  
            following amendment:

          On page 3, line 28, after "State" insert "pursuant to  
            subdivision (e)".  
           
           8)Arguments in Opposition  :  In opposition to this constitutional  
            amendment, Capitol Resource Family Impact writes, "ACA 13  
            makes it more difficult for the people to amend their  
            constitution and pass laws via the initiative process by  
            increasing the amount of signatures required for qualifying  
            the measure.  It also inserts the legislature into the  
            initiative process, a direct violation of the purpose for the  
            constitution's initiative provision."  
           
           9)Previous Measures  :  ACA 18 (Nation) of 2005 proposed  
            establishing an indirect initiative process.  ACA 18 was  
            approved by this committee on a 4-2 vote, but was never  
            brought up for a vote on the Assembly Floor.

           10)Related Measures  :  SCA 10 (Ducheny) and SCA 16 (DeSaulnier)  
            both propose to establish an indirect initiative process.  SCA  
            10 was approved by the Senate Elections, Reapportionment and  
            Constitutional Amendments Committee by a 3-2 vote, and is  
            pending in the Senate Appropriations Committee.  SCA 16  
            (DeSaulnier) is pending in the Senate Elections,  
            Reapportionment and Constitutional Amendments Committee.  
           








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           11)Approval of Voters  :  As a constitutional amendment, this  
            measure requires the approval of the voters to take effect.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          Capitol Resource Family Impact
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094