BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACA 13
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          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   ACA 13 (Hernandez) - As Amended:  June 28, 2009 

          Policy Committee:                              ElectionsVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This measure proposes to amend the state Constitution to  
          establish an indirect initiative process.  
          Specifically, this bill:

          1)Requires the Secretary of State (SOS) to transmit an  
            initiative measure to the Legislature prior to certifying the  
            signatures obtained by the initiative proponents.

          2)Requires that an initiative measure per (1) be assigned to the  
            appropriate Senate and Assembly committees, and requires those  
            committees to commence joint public hearings on the subject of  
            the initiative within 20 legislative session days.

          3)Permits the Legislature, by adopting a concurrent resolution,  
            to amend any initiative in a manner consistent with the  
            initiative, if the proponent accepts the amendments.  

          4)Permits the Legislature to enact into law through a bill, any  
            initiative measure transmitted to it if the initiative measure  
            is a statute.  If the bill is enacted, including any  
            amendments made by the Legislature and accepted by the  
            proponent, the initiative measure shall not be submitted to  
            the electors.

          5)Permits the Legislature-by majority vote for an initiative  
            statute and by a two-thirds vote for an initiative amending  
            the state constitution-to adopt a concurrent resolution and  
            return a proposed initiative to the SOS to be placed on the  
            ballot.

          6)Stipulates that if the Legislature returns an initiative to  








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            the SOS within 30 legislative session days following receipt  
            and the SOS certifies the requisite number of initiative  
            signatures-per current law, equivalent to 5% for a statute and  
            8% for an amendment to the constitution of the votes for all  
            candidates for governor at the last gubernatorial election-the  
            initiative including any proposed amendments, would be placed  
            on the ballot.

          7)Stipulates that if the Legislature does  not  return the  
            initiative measure to the SOS within 30 legislative session  
            days following receipt, the initiative would be placed on the  
            ballot only if certified by the SOS to have valid signatures,  
            equal to 10% for a statute and 16% for an amendment to the  
            constitution, of the votes for all candidates for governor at  
            the last gubernatorial election.  

          8)Requires that the proponents of the initiative measure be  
            provided the opportunity to gather additional signatures of  
            electors required per (7).

           FISCAL EFFECT  

          1)One-time General Fund costs of about $220,000 to include the  
            analysis of this measure and the arguments for and against the  
            measure in the statewide voter information guide.

          2)To the extent initiatives would be enacted by the Legislature  
            rather than placed on the ballot, and fewer initiatives would  
            qualify for the ballot due to the larger signature-gathering  
            requirements, there would be savings associated with the  
            avoided costs for otherwise including these initiatives in the  
            voter information guide.

          3)Counties would likely incur significant additional  
            nonreimbursable costs to verify additional signatures for  
            initiatives not returned by the Legislature within 30  
            legislative session days.  These additional costs would be  
            offset to some extent by reduced signature certification  
            required due to the effects described in (2) above.

           COMMENTS  

           1)Purpose  .  The author cites a December 2008 Public Policy  
            Institute of California report revealing that a majority (63%)  
            of California voters felt they could not adequately deal with  








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            the many proposals typically included in any given election.  
            The report provided evidence that Californians favor some type  
            of reform to the current initiative process, specifically  
            including reforming the time/duration in which the Legislature  
            and an initiative's proponents could try to reach a compromise  
            solution before the initiative goes to the ballot.  The author  
            also states that the report showed that voters support  
            adopting a standard system of review and revision of all  
            proposed initiatives in order to address or avoid potential  
            legal issues and drafting errors before the measure is placed  
            before voters.

           2)Background  .  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.  The indirect option was used successfully  
            only once, however, and voters approved its abolition in 1966.  
             According to the National Conference of State Legislatures  
            (NCSL), eight states currently offer some form of an  
            "indirect" initiative process-Maine, Massachusetts, Michigan,  
            Mississippi, Nevada, Ohio, Utah, and Washington.

            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 rarely  
            engage in negotiation with initiative proponents to seek a  
            compromise and almost always reject initiative proposals,  
            which then end up on the ballot for a popular vote.

           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  
            commission's January 2002 final report included a  
            recommendation to establish an indirect initiative process  
            allowing the Legislature to enact an initiative into law, with  
            the proponents consent, thereby removing the need for the  
            initiative to go to the ballot.  The one key difference  
            between ACA 13 and the commission's recommendation is that,  
            under ACA 13, all initiatives would be subject to Legislative  
            review while the commission recommended that the indirect  
            initiative process be voluntary.


           4)Opposition  .  Capitol Resource Family Impact argues that, "ACA  
            13 makes it more difficult for the people to amend their  








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            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."
           
          5)Prior Legislation  .  ACA 18 (Nation) of 2005, which proposed  
            establishing an indirect initiative process, was never brought  
            up for a vote on the Assembly Floor.

           6)Related Legislation .  SCA 10 (Ducheny) and SCA 16 (DeSaulnier)  
            both propose to establish an indirect initiative process.   
            Both measures are pending in the Senate Appropriations  
            Committee.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081