BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND  
                           CONSTITUTIONAL AMENDMENTS
                          Senator Loni Hancock, Chair


          BILL NO:   AB 436            HEARING DATE: 7/7/09
          AUTHOR:    SALDANA           ANALYSIS BY:  Frances Tibon  
          Estoista
          AMENDED:   4/14/09
          FISCAL:    YES
          
                                     SUBJECT
           
          Elections: initiatives

                                   DESCRIPTION  
          
           Existing law  establishes a process for the Attorney General  
          (AG) to prepare a summary of the chief purposes and points  
          of a proposed measure.  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 final version of a  
          proposed initiative measure, or if a fiscal estimate or  
          opinion is to be included, within 15 days after receipt of  
          the fiscal estimate or opinion prepared by the Department  
          of Finance (DOF) and the Joint Legislative Budget Committee  
          (JLBC).

           Existing law  requires proponents of any initiative measure,  
          at the time of submitting the draft of the measure to the  
          AG, to pay a fee of $200, which shall be 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 shall be immediately paid into the General  
          Fund of the state.

           Existing law  specifies that in preparing a title and  
          summary, the AG shall determine whether the substance  
          thereof, if adopted, would affect the revenues or  
          expenditures of the state or local government, and if he or  
          she determines that it would, he or she shall include in  
          the title either the estimate of the amount of any increase  
          or decrease in revenues or costs to the state or local  
          government.










           This bill  incrementally increases the current fee that  
          proponents of an initiative measure are required to pay at  
          the time of submitting the draft of the measure to the AG  
          from $200 to $2,000.  Specifies that fee revenues shall be  
          used for the reimbursement of the costs incurred by the AG  
          for preparing the title and summary of the proposed  
          initiative measure.




           This bill  establishes the following fee schedule:

                 $500 beginning in 2010;
                 $1,000 beginning in 2012;
                 $1,500 beginning in 2014; and,
                 $2,000 beginning in 2016.

           This bill  requires the AG in 2018 and every two years  
          thereafter, to adjust the fee for inflation.

           This bill  eliminates the refund 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.

                                    BACKGROUND  
          
           Increasing Number of Initiatives and Ballot Summaries  :   
          According to the AG's office, there has been a steady  
          increase in the number of initiative proposals submitted in  
          the last few decades.  In the 1960s, just 47 proposed  
          initiatives were submitted to the AG for a title and  
          summary to be prepared - a number that more than tripled to  
          180 proposed initiative measures in the 1970s.  In the  
          1980s, 282 proposed initiatives were submitted to the AG,  
          while in the 1990s, 391 were submitted - more than double  
          the number that was submitted just two decades earlier.   
          The number of initiatives submitted to the AG for  
          preparation of a title and summary has continued to  
          increase this decade, with 545 measures submitted to the AG  
          since 2000, with 9 months remaining in the decade.   
          Although reports show that there has been a recent decline  
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          in the number of voter approved initiatives, the AG is  
          still required to develop a title and summary for each  
          initiative, regardless of whether the initiative qualifies  
          for the ballot.

          In California, proponents of an initiative measure must  
          submit the text of a measure to the AG's office for  
          preparation of a title and summary and pay a $200 filing  
          fee bore they can circulate petitions for signatures.   
          Originally set in 1943, the filing fee was intended to  
          cover the administrative costs of the initiative process to  
          the state and to discourage frivolous proposals.  

          Over the course of the sixty-six years since the initiative  
          filing fee was designated, the nature of the initiative  
          process has changed dramatically.  Data provided by the  
          AG's office shows the median cost in 2007-2008 to title and  
          summarize each of the 126 initiatives for that cycle was  
          $3,157.  In total, the state received $22,800 in filing  
          fees but it spent $418,459 of taxpayer money (General Fund)  
          and 2933.75 hours of paid state attorney time to title and  
          summarize all 126 measures.  One measure from the November  
          2008 General Election cost nearly $20,000 to title and  
          summarize; since the fee was refunded, the entire cost was  
          paid through the General Fund.




                                     COMMENTS  
          
            1. According to the author  :  In California, proponents  
             must submit the text of a measure to the state Attorney  
             General's office and pay a $200 filing fee before they  
             can begin circulating petitions for signatures.   
             Originally set in 1943, this $200 fee was intended to  
             cover the administrative costs of analyzing and  
             verifying petitions and to discourage frivolous  
             proposals.  The filing fee is then refunded to  
             proponents if the measure qualifies for the ballot, and  
             this practice is unaffected by the provisions of this  
             bill.  AB 436 addresses the drastic disparity between  
             the historical cost to file an initiative measure and  
             the actual cost incurred by our state's Attorney General  
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             to prepare a measure's title and summary.  The  
             initiative process in California has radically changed  
             since its inception in 1911 and the designation of its  
             filing fee in 1943, and there is a pressing need to  
             balance the cost to proponents to file initiative  
             measures with the cost to the state to prepare them.
            
           2. Attorney General's Process for Preparing Ballot  
             Summaries and Titles  :  Before circulating a measure,  
             initiative proponents must first submit their proposal  
             to the AG's office.  The AG obtains a fiscal analysis  
             from the DOF and the JLBC and then provides the  
             proponent with a title and summary that must be placed  
             at the top of each petition.  Current law states that  
             proponents must pay a $200 fee to the AG, a fee that is  
             refunded if the initiative qualifies for the ballot.
           
           3. How Do Other States Administer Filing Fees for  
             Initiative Petitions  :  According to the National  
             Conference of State Legislatures, there are a number of  
             ways in which states have addressed the issue of filing  
             fees for initiative petitions.  States like Arizona,  
             Colorado, Illinois and Ohio do not require an initiative  
             filing fee, while others like Alaska, Mississippi,  
             Washington and Wyoming require anywhere from $5 to $500  
             for filing fees.  Only Alaska and California allow for  
             refunds if petitions are properly filed or if petitions  
             qualify for the ballot within two years from the date  
             the summary is furnished, respectively.

           The Florida Legislature requires elections officials to  
             collect, in advance, the sum of 10 cents for each  
             signature checked or the actual cost of verifying such  
             signatures, whichever is less, by the person or  
             organization submitting the petition.  However, if a  
             person or organization seeking to have an issue placed  
             upon the ballot cannot pay such charges without imposing  
             an undue burden on personal resources they can, upon  
             written certification of such inability given under oath  
             to the elections official, be entitled to have the  
             signatures verified at no charge.  In most cases, a  
             person or organization is required to collect signatures  
             of at least one percent of the total number of  
             registered voters of that geographical area in order to  
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             qualify a ballot measure.
           

           4. Will this Bill Limit Access to the Ballot for Some  
             Organizations  ?  Proponents of an initiative proposal now  
             pay a $200 filing fee, which is refunded if the  
             initiative qualifies for the ballot.  The fee's primary  
             purpose is to discourage frivolous proposals, and it  
             also helps to defray some of the administrative costs  
             associated with processing initiatives.  Although the  
             AG's cost to prepare the title and summary of each filed  
             initiative has increased over the years, increasing the  
             filing fee however incremental, could potentially limit  
             access to the initiative process.

                                   PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:  5-2
          Assembly Appropriations Committee:        11-5
          Assembly Floor:                           47-28

                                    POSITIONS  
          
          Sponsor: Author

          Support: American Federation of State, County and Municipal  
                 Employees
                      (AFSCME)
                   California Common Cause
                   League of Women Voters of California

          Oppose:  Capitol Resource Family Impact










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