BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 436
                                                                  Page  1

          Date of Hearing:   April 22, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 436 (Saldana) - As Amended:  April 14, 2009 

          Policy Committee:                              ElectionsVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill incrementally increases the current $200 fee that  
          proponents of an initiative measure must pay when submitting a  
          draft of the measure to the Attorney General (AG) for  
          preparation of the initiative title and summary.  Specifically,  
          this bill: 

          1)Establishes the following fee schedule:

             a)   $500 beginning in 2010.
             b)   $1,000 beginning in 2012.
             c)   $1,500 beginning in 2014.
             d)   $2,000 beginning in 2016.

          2)Requires the AG, in 2018 and every two years thereafter, to  
            adjust the fee for inflation.

          3)Eliminates the refunding of an initiative filing fee to a  
            proponent if a measure qualifies for the ballot within two  
            years after the AG's summary is furnished to the proponents.

           FISCAL EFFECT  

          Minor annual increased revenue to help offset the AG's costs for  
          preparing the title and summary for proposed initiatives.  Based  
          on the average of 59 proposals submitted annually during this  
          decade, additional revenue would initially total $18,000 in 2010  
          and would reach $106,000 in 2016.  The increased cost to  
          initiative proponents may reduce the number of proposal  
          submitted, which would both reduce these revenues and the AG's  
          costs associated with this workload.  There will also be minor  
          cost savings by eliminating the refunding provision for  








                                                                  AB 436
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          qualifying initiatives.

           COMMENTS  

           1)Background and Purpose  .  Before statewide initiative petitions  
            can be circulated for signatures, initiative proponents must  
            submit the text of the measure to the AG's office and pay a  
            $200 fee.  This fee level was established in 1943 and was  
            intended to cover the AG's administrative costs to prepare the  
            initiative for circulation and to discourage frivolous  
            proposals.

            According to the author, AB 436 is intended to address the  
            large disparity between the current fee and the AG's costs for  
            preparing the title and summary.  The author notes that for  
            2007-08, the AG's median cost for this work was $3,157 per  
            proposal.  Even adjusted for inflation, the $200 fee  
            established 66 years ago would equal only $2,441 today-still  
            less than the average cost.  The author argues that the  
            current low fee also fails to discourage frivolous  
            propositions.  According to the author, initiative proponents  
            often submit multiple, incrementally different versions of a  
            measure while they poll test which version is most likely to  
            be successful.  The author believes this "ballot title  
            shopping" is facilitated by the nominal filing fee.  For  
            example, the four versions of Proposition 9 (The Victim's Bill  
            of Rights Act of 2008) prepared by the AG cost $27,231.  Since  
            only one of the four versions was pursued to qualify for the  
            ballot, proponents paid only $600 for the state to provide its  
            service.

           2)Opposition  .  The Capitol Resource Family Impact maintains that  
            the legislation "would deter California voters from filing  
            initiatives, and making their voices heard, by increasing the  
            deposit tenfold. The AG's office is currently able to prepare  
            titles and summaries without this large $2,000 reimbursement.  
            While many offices would doubtless welcome additional money,  
            this particular fee is both unnecessary and unjust to  
            California voters."

            It should be noted, however, that for any person or  
            organization genuinely attempting to qualify an initiative for  
            a statewide ballot, the filing fee, even at $2,000, would  
            likely represent a miniscule portion of an initiative  
            proponent's total costs.








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