BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1832|
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                                 THIRD READING


          Bill No:  AB 1832
          Author:   Saldana (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE ELECTIONS, REAPP. & C.A. COMMITTEE  :  3-2, 6/15/10
          AYES:  Hancock, DeSaulnier, Liu
          NOES:  Denham, Strickland
           
          ASSEMBLY FLOOR  :  48-29, 4/5/10 - See last page for vote


           SUBJECT  :    Initiative measures:  filing fee

           SOURCE  :     Author


           DIGEST  :    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 from $200 to $2,000.  Specifically, this  
          bill establishes the following fee schedule:  $500  
          beginning in 2011, $1,000 beginning in 2013, $1,500  
          beginning in 2015, and $2,000 beginning in 2017.

           ANALYSIS  :    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 within 15 days after  
          receipt of the final version of a proposed initiative  
          measure, or if a fiscal estimate or opinion is to be  
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          included, within 15 days after receipt of the fiscal  
          estimate or opinion prepared by the Department of Finance  
          and the Joint Legislative Budget Committee.  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 $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.

           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 36 years since the initiative filing  
          fee was designated, the nature of the initiative process  

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          has changed dramatically.  Data provided by the AG's office  
          shows the median cost in 2007-08 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.

           How 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.

           Prior Legislation

           AB 436 (Saldana), 2009-10 Session, 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."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/17/10)

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

           OPPOSITION  :    (Verified  6/17/10)

          Governor's office of Planning and Research 
          Howard Jarvis Taxpayers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill raises the initiative measure filing fee from  
          $200 to $2,000 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 $200 in 1943 corresponds to approximately $2,480  
          today.


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Bass, Beall, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Carter, Chesbro,  
            Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,  
            Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,  
            Hernandez, Hill, Huffman, Jones, Lieu, Bonnie Lowenthal,  
            Ma, Mendoza, Monning, Nava, V. Manuel Perez, Portantino,  
            Ruskin, Salas, Saldana, Skinner, Solorio, Swanson,  
            Torlakson, Torres, Torrico, Yamada, John A. Perez
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Conway, Cook, DeVore, Emmerson, Fletcher, Fuller, Gaines,  
            Garrick, Gilmore, Hagman, Harkey, Huber, Jeffries,  
            Knight, Logue, Miller, Nestande, Niello, Nielsen, Norby,  
            Silva, Smyth, Audra Strickland, Tran, Villines
          NO VOTE RECORDED:  Blakeslee, Charles Calderon, Vacancy


          DLW:mw  6/17/10   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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