BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 894
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 894 (Furutani)
        As Amended  September 2, 2009
        Majority vote
         
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        |ASSEMBLY:  |77-0 |(May 21, 2009)  |SENATE: |35-0 |(September 9,  |
        |           |     |                |        |     |2009)          |
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         Original Committee Reference:    E. & R.  

         SUMMARY  :  Requires the Legislative Analyst's Office (LAO), when  
        preparing the required fiscal analysis for initiative measures, to  
        provide specified information.  Specifically,  this bill  :  

        1)Requires the LAO to include in his or her analysis of a state  
          ballot measure the measure's estimated impact on the state and an  
          estimated percentage of the General Fund that would be expended  
          due to the measure's passage, if it is estimated that a measure  
          will result in increased costs to the state.  Allows for the use  
          of visual aids for the estimated impact and the percentage of GF  
          expended.

        2)Requires that any estimate of increased cost to state or local  
          governments be set out in boldface print in the ballot pamphlet. 

        3)Requires the LAO, in preparing the fiscal impact summary for a  
          measure on the ballot, to use a uniform method in each analysis to  
          describe the estimated increase or decrease in revenue or costs of  
          a measure, to allow average voters to draw comparisons among the  
          fiscal impacts of measures. 

         The Senate amendments  :  

         1)Add double-jointing language to avoid chaptering problems with AB  
          753 (Adams).

        2)Require the Attorney General's condensed statement of the fiscal  
          impact to contain the uniform estimate of increase or decrease in  
          revenue or cost of the measure prepared by the LAO.

        3)Make other technical and clarifying changes.
         
        AS PASSED BY THE ASSEMBLY  , this bill was similar to the version  








                                                                AB 894
                                                                Page  2

        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, "the state faces an ongoing  
        budget shortfall of tens of billions of dollars.  This crisis is  
        made far more difficult to solve with the increasing passage of  
        ballot measures and initiatives that set aside state resources,  
        commit future tax revenues, or in some cases do not even identify a  
        funding source, for various projects.  Voters are not sufficiently  
        aware of the cost pressures certain ballot measures and initiatives  
        create.  Voters need to understand the fiscal impact of new ballot  
        proposals in the context of the state's budget and General Fund.   
        This bill would put the fiscal analysis of ballot measures and  
        initiatives in context for voters tasked with making complicated  
        decisions that impact state funds."


         Analysis Prepared by  :    Qiana Charles / E. & R. / (916) 319-2094  
        FN: 0002889