BILL ANALYSIS                                                                                                                                                                                                    






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


          BILL NO:   AB 1832             HEARING DATE:6/15/10
          AUTHOR:    SALDANA             ANALYSIS BY:Frances Tibon  
          Estoista
          AMENDED:   AS INTRODUCED
          FISCAL:    NO
          
                                     SUBJECT
           
          Initiative measures: filing fees

                                  DESCRIPTION  
          
           Existing law  establishes a process for the Attorney General  
          (AG) to prepare a summary of the chief purposes and points  
          of a proposed statewide initiative 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 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.

           This bill  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:  
           
               $500 beginning in 2011
               $1,000 beginning in 2013









               $1,500 beginning in 2015
               $2,000 beginning in 2017

                                    BACKGROUND  
          
           Increasing Number of Initiatives and Ballot Summaries  :   
          According to the AG's office, there has been a steady  
          increase in the number of statewide initiative proposals  
          submitted in the last few decades.  The following  
          illustrates the increased number of filed initiative  
          proposals:

          47 from 1960 to 1969
        180 from 1970 to 1979
        282 from 1980 to 1989
        391 from 1990 to 1998
        647 from 2000 to 2009

          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 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 before 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.
          AB 1832 (SALDANA)                                      Page  
          2  
           








                                         
                                    COMMENTS  
          
           1.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.
           
          2.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.
           
          3.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 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."
          AB 1832 (SALDANA)                                      Page  
          3 
           








           
                                  PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:  5-1
          Assembly Floor:                           48-29
                                         
                                   POSITIONS  

          Sponsor: Author

           Support: American Federation of State, County and  
                   Municipal Employees,
                      AFL-CIO
                    California Common Cause
                    League of Women Voters of California

           Oppose:  Governor's office of Planning and Research 

























          AB 1832 (SALDANA)                                      Page  
          4