BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 436

                                                                  Page  1


          GOVERNOR'S VETO
          AB 436 (Saldana)
          As Amended  September 4, 2009
          2/3 vote
           
           
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          |ASSEMBLY:  |47-28|(May 28, 2009)  |SENATE: |21-18|(September 9,  |
          |           |     |                |        |     |2009)          |
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          |ASSEMBLY:  |49-29|(September 10,  |        |     |               |
          |           |     |2009)           |        |     |               |
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          Original Committee Reference:    E. & R.  
           
          SUMMARY  :  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 Attorney  
          General (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.  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; and, 
             d)   $2,000 beginning in 2016.

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

           The Senate amendments  :

          1)Restore a provision of existing law that allows for an  
            initiative filing fee to be refund to a proponent if the  










                                                                  AB 436

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            measure qualifies for the ballot within two years. 

          2)Move the section of the Elections Code in which the policy of  
            this bill is contained to avoid chaptering problems with AB  
            753 (Adams).

          3)Make technical non-substantive changes. 

           AS PASSED BY THE ASSEMBLY  , this bill was similar to the version  
          passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  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.  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 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.   
          The current filing fee for initiative measures no longer covers  
          the Attorney General's administrative costs.  For 2007-2008, the  
          median cost to the Attorney General to prepare titles and  
          summaries for initiative measures was $3,157; of those measures,  
          one of the most expensive was Proposition 9 ("The Victims' Bill  
          of Rights Act of 2008: Marsy's Law") which bore a price tag of  
          $15,504.50.  Since Proposition 9 qualified for the ballot, its  
          $200 filing fee was refunded to the proponents.  Adjusted for  
          inflation, the value of the $200 filing fee in 1943 corresponds  
          to approximately $2,441 today."

          Before circulating a measure, initiative proponents must first  
          submit their proposal to the AG's office.  The AG obtains a  










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          fiscal analysis from the Department of Finance and the Joint  
          Legislative Budget Committee 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. 

          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 8 months remaining in the decade.  Although reports show  
          that there has been a recent decline 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 qualified for the ballot.  
           
          GOVERNOR'S VETO MESSAGE :

               This bill would incrementally increase the current  
               fee that proponents of an initiative are required to  
               pay at the time of submitting the draft of the  
               measure to the [AG].  Under the provisions of this  
               bill the fee would increase from $200 to $2,000 in  
               2016.  

               The original fee was established to deter frivolous  
               filings; this bill would fundamentally alter the  
               purpose of the fees to instead be used to pay the  
               administrative costs borne by the AG.  Using the fees  
               to reimburse the AG for actual costs sets a precedent  
               of allowing the fees to increase to the point that it  
               would significantly deter grassroots and volunteer  
               efforts to qualify a measure.  Whether or not the fee  










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               should be increased to reflect an amount that would  
               deter frivolous filings today is a separate question  
               than how the fees should be defined and distributed.



           Analysis Prepared by:     Qiana Charles / E. & R. / (916)  
          319-2094 


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