BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1832
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1832 (Saldana)
          As Introduced  February 11, 2010
          Majority vote 

           ELECTIONS           5-1                                         
           
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          |Ayes:|Fong, Coto, Mendoza,      |     |                          |
          |     |Saldana, Swanson          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bill Berryhill            |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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  








                                                                  AB 1832
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            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  
            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  :   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 $2,480 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."   

          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  








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          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  
          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."


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

                                                               FN:  0003764