BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 319
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          Date of Hearing:  April 21, 2009

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                    AB 319 (Niello) - As Amended:  April 13, 2009
           
          SUBJECT  :  Elections: ballot titles.

           SUMMARY  :  Requires the Legislative Analyst's Office (LAO) to  
          prepare the title and summary for state initiatives and  
          referenda, the fiscal estimates for proposed state initiative  
          measures, and the ballot titles for state measures that will  
          appear on the ballot.  Substantially reduces the amount of time  
          allowed for the preparation of fiscal estimates for proposed  
          state initiative measures.  Specifically,  this bill  : 

          1)Requires the LAO, instead of the Attorney General (AG), to  
            prepare a title and summary of the chief purpose and points of  
            a proposed state initiative or referendum measure.

          2)Requires the LAO, instead of the Joint Legislative Budget  
            Committee (JLBC) and the Department of Finance (DOF), to  
            prepare an estimate of the amount of increase or decrease in  
            revenues or costs to the state or local government for a state  
            initiative measure.  Allows the LAO to request the assistance  
            of any state department, agency, or official in preparing the  
            estimate.

          3)Reduces, from 25 working days to 15 calendar days, the amount  
            of time that is allowed for the preparation of the estimate of  
            the amount of increase or decrease in revenues or costs to the  
            state or local government for a state initiative measure.

          4)Requires the LAO, instead of the AG, to prepare the ballot  
            title for each measure submitted to the voters of the whole  
            state.

          5)Makes corresponding changes.

          6)Provides that the provisions of this bill will not go into  
            effect unless the voters approve Assembly Constitutional  
            Amendment 20 of the 2009-10 Regular Session.

           EXISTING LAW  :









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          1)Constitutionally requires the AG to prepare a title and  
            summary of a state initiative or referendum measure before  
            petitions may be circulated for that measure.

          2)Requires the proponents of a state initiative or referendum  
            measure, prior to circulating petitions for that measure, to  
            submit a draft of the proposed measure to the AG with a  
            written request that a title and summary of the chief purpose  
            and points of the proposed measure be prepared.  Limits the  
            title and summary to not more than 100 words.

          3)Requires the AG to prepare a summary of the chief purposes and  
            points of a proposed state initiative or referendum.  Provides  
            that if the AG determines that an initiative measure would  
            affect the revenues or expenditures of the state or a local  
            government, the title and summary shall include an estimate of  
            the fiscal impact of the measure, to be prepared jointly by  
            the DOF and the JLBC.

          4)Requires the DOF and the JLBC to deliver the fiscal estimate  
            of a state initiative measure to the AG within 25 working days  
            from the receipt of the final version of the proposed  
            initiative.  Permits the DOF and the JLBC to use a statement  
            of fiscal impact prepared by the LAO in the preparation of the  
            fiscal estimate.

          5)Requires the AG to provide a copy of the title and summary to  
            the Secretary of State (SOS) within 15 days after receipt of  
            the fiscal estimate or, if the AG determines that no fiscal  
            estimate is necessary, within 15 days after the receipt of the  
            final version of the proposed initiative measure.

          6)Requires a petition for a proposed state initiative measure to  
            include the title and summary prepared by the AG on each page  
            of the petition on which signatures are to appear and on each  
            section of the petition preceding the text of the measure.

          7)Requires the AG to provide and return to the SOS a ballot  
            title for each measure submitted to the voters of the whole  
            state.  Provides that the ballot title shall express in not  
            more than 100 words the purpose of the measure.  Requires each  
            state measure to be designated on the ballot by the ballot  
            title certified to the SOS by the AG.

           FISCAL EFFECT  :  Unknown








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           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               The initiative process is an integral and vital component  
               of the democratic process in California and is being  
               exercised with increasing frequency.  California statute  
               dictates that the Attorney General shall provide a ballot  
               and title and summary for each initiative, which will "give  
               a true and impartial statement of the purpose of the  
               measure in such language that the ballot title shall  
               neither argue, nor be likely to create prejudice, for or  
               against the proposed measure."   In addition, the  
               Department of Finance and the Joint Legislative Budget  
               Committee are charged with determining the fiscal impact of  
               each initiative.  It is important to maintain the  
               credibility of the initiative process with a non persuasive  
               ballot title and summary and an accurate fiscal estimate.

               The soundness of our initiative process is compromised when  
               the ballot title and summary is partial.  We want voters to  
               vest their trust in a system that is fair and reliable.   
               Unfortunately, ballot language is susceptible to  
               politicization, causing it to be inaccurate and misleading.  
                This leads to a confused and frustrated rather than  
               educated and engaged electorate.  While initiatives  
               themselves are inherently political, the ballot title and  
               summary should not be.

               The Department of Finance and the Joint Legislative Budget  
               Committee are currently responsible for determining the  
               fiscal impact of ballot initiatives.  As partisan offices,  
               they can be susceptible to politicizing fiscal estimates.   
               It is imperative that voters know the true cost of ballot  
               initiatives in order to make informed decisions.  Moreover,  
               the current system is redundant as the Legislative  
               Analyst's Office already includes a fiscal estimate in its  
               analysis.

               An effective initiative process necessitates a non-partisan  
               entity without political pressures to draft the ballot  
               title and summary and determine fiscal estimates.  AB 319  
               transfers the authority to write the ballot title and  
               summary from the Attorney General's Office to the  








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               Legislative Analyst's office.  The LAO is a non-partisan  
               organization that provides credible and impartial analysis  
               for the Legislature.  The LAO currently provides an  
               unbiased and honest analysis of each initiative.  With this  
               new duty, the LAO will create a fair and balanced ballot  
               title and summary for each initiative.  AB 319 also  
               transfers responsibility for the fiscal estimate from the  
               Department of Finance and the Joint Legislative Budget  
               Committee to the Legislative Analyst.  These measures will  
               assure California voters that they are not being persuaded  
               by biased or misleading information.

           2)Is the LAO the Appropriate Entity to Prepare a Title & Summary  
            and Ballot Title  ?  While the LAO currently plays a role in the  
            preparation of the fiscal estimate for state ballot measures,  
            and while the LAO is responsible for preparing an impartial  
            analysis (including a fiscal analysis) that appears in the  
            state ballot pamphlet for every state ballot measure that will  
            appear on the ballot, it is not clear that it is appropriate  
            to shift the duties of preparing the title and summary for  
            state initiatives and referenda, and of preparing the ballot  
            title for state ballot measures, to the LAO from the AG.

          The purpose of a title and summary on an initiative or  
            referendum petition, and the purpose of a ballot title for a  
            measure that appears on the ballot, is to provide a short  
            overview to voters of the primary legal changes to existing  
            law that would be made by a measure.  This is in contrast to  
            the analysis prepared by the LAO, in which the LAO examines  
            the likely  impacts  of a proposed policy change.

          In that respect, one could argue that it is more appropriate  
            that the AG be the entity to prepare the title and summary,  
            since the AG is the chief lawyer of the state and has legal  
            expertise.  The LAO, on the other hand, has a great deal of  
            expertise with respect to analyzing the impacts of proposed  
            policy changes, but does not have the level of legal expertise  
            that the AG does in the context of summarizing the legal  
            changes that a measure would make.  
           
           3)LAO's Role in Preparation of Fiscal Estimates of Initiative  
            Measures  :  Existing state law provides that the JLBC and the  
            DOF are jointly responsible for preparing a fiscal estimate  
            for each state initiative measure that is submitted for title  
            and summary if the AG determines that the measure is likely to  








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            have a fiscal impact on state or local governments.  However,  
            existing state law also specifies that the JLBC and the DOF  
            may use a statement of fiscal impact prepared by the LAO in  
            the preparation of the fiscal estimate.

          In practice, the LAO has taken a greater role in the preparation  
            of the fiscal estimate than one might assume based on existing  
            state statutes.  When the DOF and JLBC receive a notice from  
            the AG requesting a fiscal analysis of an initiative measure,  
            the LAO usually takes the lead and begins the process of  
            investigative research, including how programs would be  
            affected and how possible passage and implementation would  
            impact the state as a whole.  Once the LAO has completed this  
            investigative analysis, the DOF is contacted for review and  
            concurrence of the LAO's analysis.  If the DOF concurs and  
            signs off on the LAO's work, the estimate is returned to the  
            AG for inclusion in the title and summary.

           4)Reduced Time Period for Preparation of a Fiscal Estimate  :   
            Under existing law, the DOF and the JLBC have 25 working days  
            to prepare a fiscal estimate for proposed state initiative  
            measures.  Taking weekend days into account, that means that  
            the DOF and the JLBC have at least 33 calendar days to prepare  
            a fiscal estimate for a proposed state initiative measure.  As  
            noted above, the LAO plays a large role in the preparation of  
            that fiscal estimate.

          Under the provisions of this bill, the LAO would have only 15  
            calendar days to prepare the fiscal estimate for each proposed  
            state initiative measure - less than half of the amount of  
            time currently provided to prepare the fiscal estimate.   
            Additionally, under the provisions of this bill, it is unclear  
            whether that 15 days would be in addition to, or would run  
            concurrently with, the 15-day time period that the LAO would  
            have to complete the title and summary for a proposed state  
            initiative measure.  

          The author's office has indicated that the author believes that  
            the fiscal estimate should be able to be completed in a much  
            shorter period of time if there is only one entity - the LAO -  
            responsible for the preparation of that estimate, as opposed  
            to the two entities - the DOF and the JLBC - that are  
            responsible for the preparation of those estimates under  
            existing law.  However, it is not clear whether the LAO will  
            be able to be as thorough in its fiscal estimate if the amount  








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            of time provided for the preparation of that estimate is cut  
            in half.  The LAO already does the bulk of the work in  
            preparing fiscal estimates for state initiative measures under  
            existing practice, and it regularly takes most or all of the  
            25 working days to prepare those fiscal estimates.

          The committee may wish to consider whether the shortened  
            timeline provided for the preparation of fiscal estimates of  
            proposed state initiative measures under this bill could  
            negatively impact the LAO's ability to provide a complete and  
            accurate fiscal estimate, particularly in light of the new  
            duties assigned to the LAO under this bill.  
           
           5)Constitutional Amendment Required  :  Article II, Section 10 (d)  
            of the California Constitution requires that the AG prepare a  
            title and summary for any state initiative or referendum  
            measure before petitions for that measure can be circulated.   
            As such, the policy proposed by this bill cannot be  
            implemented by statute alone - making the LAO responsible for  
            preparing titles and summaries of state initiative and  
            referendum measures requires a constitutional amendment.

          This bill specifies that it will become operative only if the  
            voters approve ACA 20 from this Legislative session.  ACA 20  
            was introduced by the author of this bill on March 31, 2009,  
            but has not yet been referred to committee and will not be  
            eligible to be heard in committee until May 1.  If the  
            committee approves this bill today, it will also need to  
            approve ACA 20 or some other constitutional amendment at a  
            later date, and that constitutional amendment will have to be  
            approved by voters, in order to implement the changes proposed  
            by this bill.

           6)Arguments in Opposition  :  In opposition to this bill, the  
            California School Employees Association writes:

               The Attorney General is elected to office and  
               accountable to voters, while the Legislative Analyst  
               is an appointed position with no accountability to  
               voters.  It is appropriate to maintain the current  
               process whereby the Attorney General writes the ballot  
               title and summary for all state ballot initiatives.   
               [If] the Attorney General does not carry out these  
               responsibilities in accordance with law, parties have  
               the option of challenging the ballot title and summary  








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               in court and voters have the opportunity to express  
               their dissatisfaction at the polls.

           7)Related Legislation  :  AB 753 (Adams), which is also being  
            heard in this committee today, standardizes and clarifies  
            terminology and procedures for the preparation of titles,  
            summaries, and ballot labels for state ballot measures, and  
            reorganizes provisions of existing law governing the  
            preparation of titles, summaries, and ballot labels for state  
            ballot measures.

          ACA 20 (Niello), which is awaiting referral to committee by the  
            Assembly Rules Committee, would require the LAO, instead of  
            the AG, to prepare the titles and summaries for proposed state  
            initiative and referendum measures.  ACA 20 is a companion  
            measure to this bill.

           8)Previous Legislation  :  AB 2209 (Niello) of 2008 would have  
            required the LAO, instead of the AG, to prepare the title and  
            summary for state initiatives and referenda and the ballot  
            title for state measures that would appear on the ballot.  AB  
            2209 failed passage in this committee on a 2-5 vote.

          ACA 18 (Adams) of 2008 would have required the LAO, instead of  
            the AG, to prepare the title and summary for state initiative  
            and referendum measures.  ACA 18, which was a companion  
            measure to AB 2209, was not referred to committee until after  
            AB 2209 had failed passage.  As such, ACA 18 was not heard in  
            this committee.

          SB 1208 (Ducheny) of 2008 would have required the fiscal  
            estimate for a proposed state initiative measure to be  
            prepared by the LAO instead of by the DOF and the JLBC.  SB  
            1208 was vetoed by the Governor, who argued that the joint  
            responsibility of the DOF and the JLBC in preparing fiscal  
            estimates for proposed state initiatives was important in  
            ensuring that the Legislative and Executive branches of  
            government agreed on the possible fiscal impact of a proposed  
            initiative.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.








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           Opposition 
           
          California School Employees Association, AFL-CIO
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094