BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1832
                                                                  Page  1

          Date of Hearing:   March 16, 2010

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                AB 1832 (Saldana) - As Introduced:  February 11, 2010
           
          SUBJECT  :   Initiative measures: filing fee.

           SUMMARY  :   Incrementally increases the 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 $2000.  Specifically,  this bill establishes  the following fee  
          schedule:

          1)$500 beginning in 2011.
          2)$1,000 beginning in 2013.
          3)$1,500 beginning in 2015. 
          4)$2,000 beginning in 2017. 

           EXISTING LAW  :

          1)Establishes a process for the 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 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). 

          2)Requires proponents of any initiative measure, at the time of  
            submitting the draft of the measure to the AG, to pay a fee of  
            two hundred dollars ($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. 

          3)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  








                                                                  AB 1832
                                                                  Page  2

            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.

           FISCAL EFFECT  :   Keyed non-fiscal by the Legislative Counsel.

           COMMENTS  : 
            
           1)Purpose of the Bill  :   According to the author:
           
                AB 1832 would raise the initiative measure filing fee from  
               $200 to $2000 over a period of six years.  In 2011, the fee  
               would initially increase to $500 and continue to do so by  
               $500 every two years until 2017.  This bill will generate  
               additional revenue to offset the administrative costs of  
               the initiative process as well as reduce costs by deterring  
               frivolous proposals.  Originally set in 1943, the fee was  
               intended to cover the administrative costs of the  
               initiative process to the state and to discourage frivolous  
               proposals.   According to the Consumer Price Index, the  
               value of the $200 in 1943 corresponds to approximately  
               $2480 today.  

               According to the Attorney General's office, 107 initiatives  
               were filed in 2009, making it the second-highest annual  
               total in California history.  From 2000-2009, 647  
               initiative proposals were submitted for preparation of a  
               title and summary; in contrast, 1990-1999 saw only 391  
               measures filed.  That is a 60% increase this decade over  
               the previous one with more measures having been submitted  
               from 2000-2009 than the sum total during the 74 year period  
               from 1912 to 1986.  By realigning the fee closer to its  
               original value, frivolous filings would again be  
               discouraged.  
             
          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)Increasing Number of Initiatives and Ballot Summaries:    








                                                                  AB 1832
                                                                  Page  3

            According to the AG's office, there has been a steady increase  
            in the number of initiative proposals submitted in the last  
            few decades.  The following illustrates the increased number  
            of filed initiative proposals:

               a)     47 from 1960 to 1969
               b)     180 from 1970 to 1979
               c)     282 from 1980 to 1989
               d)     391 from 1990 to 1998
               e)     647 from 2000 to 2009
           
          4)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.  Currently only Alaska, California,  
            and Washington allow for refunds if petitions are properly  
            filed or if initiatives qualify for the ballot.  

           5)Arguments in Support  :   According to the California Common  
            Cause:

               The current initiative filing fee does not accurately  
               reflect the cost to the Attorney General's office to  
               prepare the initiative title and summary, and by increasing  
               the initiative filing fee, AB 1832 will deter some  
               dishonest practices currently used by committees that  
               choose to submit multiple initiatives on the same topic to  
               ensure favorable public opinion.  This practice is both  
               wasteful and confusing to citizens seeking to gain  
               information about initiatives and their sponsors.

           6)Previous Legislation  :  AB 436 (Saldana) of 2009 was  
            substantially similar to this bill, except that it would have  
            begun to increase the initiative filing fee in 2010 and every  
            two years thereafter until 2018, at which time the AG would  
            have been required to adjust the fee for inflation.  AB 436  
            was vetoed by the Governor.  In his veto message, Governor  
            Schwarzenegger argues that "the original fee was established  
            to deter frivolous filings and that 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  








                                                                  AB 1832
                                                                  Page  4

            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."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Common Cause

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Qiana Charles / E. & R. / (916)  
          319-2094