BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1968
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          Date of Hearing:  April 20, 2010

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                 AB 1968 (Niello) - As Introduced:  February 17, 2010
          
          SUBJECT  :  Elections: ballot titles.

           SUMMARY  :  Requires the Legislative Analyst's Office (LAO) to  
          prepare the circulating titles and summaries for state  
          initiatives and referenda, the fiscal estimates for proposed  
          state initiative measures, and the ballot titles and summaries  
          and ballot labels for state measures that will appear on the  
          ballot.  Substantially reduces the amount of time allowed for  
          the preparation of fiscal estimates for proposed state  
          initiative measures.  Specifically,  this bill  :  

          1)Requires the LAO, instead of the Attorney General (AG), to  
            prepare a circulating title and summary of the chief purpose  
            and points of a proposed state initiative or referendum  
            measure.

          2)Requires the LAO, instead of the Joint Legislative Budget  
            Committee (JLBC) and the Department of Finance (DOF), to  
            prepare an estimate of the amount of increase or decrease in  
            revenues or costs to the state or local government for a state  
            initiative measure.  

          3)Reduces, from 25 working days to 15 calendar days, the amount  
            of time that is allowed for the preparation of the estimate of  
            the amount of increase or decrease in revenues or costs to the  
            state or local government for a state initiative measure.

          4)Requires the LAO, instead of the AG, to prepare the ballot  
            title and summary and ballot label for each measure submitted  
            to the voters of the whole state.

          5)Makes various corresponding and conforming changes.

          6)Provides that the provisions of this bill will not go into  
            effect unless the voters approve Assembly Constitutional  
            Amendment 20 of the 2009-10 Regular Session.

           EXISTING LAW  : 









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          1)Constitutionally requires the AG to prepare a title and  
            summary of a state initiative or referendum measure before  
            petitions may be circulated for that measure.

          2)Requires the proponents of a state initiative or referendum  
            measure, prior to circulating petitions for that measure, to  
            submit a draft of the proposed measure to the AG with a  
            written request that a circulating title and summary of the  
            chief purpose and points of the proposed measure be prepared.   
            Limits the circulating title and summary to not more than 100  
            words.

          3)Requires the AG to prepare a summary of the chief purposes and  
            points of a proposed state initiative or referendum.  Provides  
            that if the AG determines that an initiative measure would  
            affect the revenues or expenditures of the state or a local  
            government, the circulating title and summary shall include an  
            estimate of the fiscal impact of the measure, to be prepared  
            jointly by the DOF and the JLBC.

          4)Requires the DOF and the JLBC to deliver the fiscal estimate  
            of a state initiative measure to the AG within 25 working days  
            from the receipt of the final version of the proposed  
            initiative.  Permits the DOF and the JLBC to use a statement  
            of fiscal impact prepared by the LAO in the preparation of the  
            fiscal estimate.

          5)Requires the AG to provide a copy of the circulating title and  
            summary to the Secretary of State (SOS) within 15 days after  
            receipt of the fiscal estimate or, if the AG determines that  
            no fiscal estimate is necessary, within 15 days after the  
            receipt of the final version of the proposed initiative  
            measure.

          6)Requires a petition for a proposed state initiative measure to  
            include the circulating title and summary prepared by the AG  
            on each page of the petition on which signatures are to appear  
            and on each section of the petition preceding the text of the  
            measure.

          7)Requires the AG to provide and return to the SOS a ballot  
            title and summary for each measure submitted to the voters of  
            the whole state.  Provides that the ballot title and summary  
            shall express in not more than 100 words the purpose of the  
            measure.








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           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               The soundness of our initiative process is compromised when  
               the ballot title and summary is partial. We want voters to  
               vest their trust in a system that is fair and reliable.  
               Unfortunately, ballot language is susceptible to  
               politicization, causing it to be inaccurate and misleading.  
               This leads to a confused and frustrated, rather than  
               educated and engaged, electorate. While initiatives  
               themselves are inherently political, the ballot title and  
               summary should not be. 

               The Department of Finance and the Joint Legislative Budget  
               Committee are currently responsible for determining the  
               fiscal impact of ballot initiatives. As partisan offices,  
               they can be susceptible to politicizing fiscal estimates.  
               It is imperative that voters know the true cost of ballot  
               initiatives in order to make informed decisions. Moreover,  
               the current system is redundant as the Legislative  
               Analyst's Office already includes a fiscal estimate in its  
               analysis.

               An effective initiative process necessitates a non-partisan  
               entity without political pressures to draft the ballot  
               title and summary and determine fiscal estimates. AB 1968  
               transfers the authority to write the ballot title and  
               summary from the Attorney General's Office to the  
               Legislative Analyst's office. The LAO is a non-partisan  
               organization that provides credible and impartial analysis  
               for the Legislature. The LAO currently provides an unbiased  
               and honest analysis of each initiative. With this new duty,  
               the LAO will create a fair and balanced ballot title and  
               summary for each initiative. AB 1968 also transfers  
               responsibility for the fiscal estimate from the Department  
               of Finance and the Joint Legislative Budget Committee to  
               the Legislative Analyst. These measures will assure  
               California voters that they are not being persuaded by  
               partial or misleading information.

           2)Is the LAO the Appropriate Entity to Prepare a Title & Summary  








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            and Ballot Title  ?  While the LAO currently plays a role in the  
            preparation of the fiscal estimate for state ballot measures,  
            and while the LAO is responsible for preparing an impartial  
            analysis (including a fiscal analysis) that appears in the  
            state ballot pamphlet for every state ballot measure that will  
            appear on the ballot, it is not clear that it is appropriate  
            to shift the duties of preparing the title and summary for  
            state initiatives and referenda, and of preparing the ballot  
            title for state ballot measures, to the LAO from the AG.

          The purpose of a title and summary on an initiative or  
            referendum petition, and the purpose of a ballot title for a  
            measure that appears on the ballot, is to provide a short  
            overview to voters of the primary changes to existing law that  
            would be made by a measure.  This is in contrast to the  
            analysis prepared by the LAO, in which the LAO examines the  
            likely  impacts  of a proposed policy change.

          In that respect, one could argue that it is more appropriate  
            that the AG be the entity to prepare the title and summary,  
            since the AG is the chief lawyer of the state and has legal  
            expertise.  The LAO, on the other hand, has expertise with  
            respect to analyzing the impacts of proposed policy changes,  
            but does not have the level of legal expertise that the AG  
            does in the context of summarizing the legal changes that a  
            measure would make.  
           
           3)LAO's Role in Preparation of Fiscal Estimates of Initiative  
            Measures  :  Existing state law provides that the JLBC and the  
            DOF are jointly responsible for preparing a fiscal estimate  
            for each state initiative measure that is submitted for title  
            and summary if the AG determines that the measure is likely to  
            have a fiscal impact on state or local governments.  However,  
            existing state law also specifies that the JLBC and the DOF  
            may use a statement of fiscal impact prepared by the LAO in  
            the preparation of the fiscal estimate.

          In practice, the LAO has taken a greater role in the preparation  
            of the fiscal estimate than one might assume based on existing  
            state statutes.  When the DOF and JLBC receive a notice from  
            the AG requesting a fiscal analysis of an initiative measure,  
            the LAO usually takes the lead and begins the process of  
            investigative research, including how programs would be  
            affected and how possible passage and implementation would  
            impact the state as a whole.  Once the LAO has completed this  








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            investigative analysis, the DOF is contacted for review and  
            concurrence of the LAO's analysis.  If the DOF concurs and  
            signs off on the LAO's work, the estimate is returned to the  
            AG for inclusion in the title and summary.

           4)Reduced Time Period for Preparation of a Fiscal Estimate  :   
            Under existing law, the DOF and the JLBC have 25 working days  
            to prepare a fiscal estimate for proposed state initiative  
            measures.  Taking weekend days into account, that means that  
            the DOF and the JLBC have at least 33 calendar days to prepare  
            a fiscal estimate for a proposed state initiative measure.  As  
            noted above, the LAO plays a large role in the preparation of  
            that fiscal estimate.

          Under the provisions of this bill, the LAO would have only 15  
            calendar days to prepare the fiscal estimate for each proposed  
            state initiative measure - less than half of the amount of  
            time currently provided to prepare the fiscal estimate.   
            Additionally, under the provisions of this bill, it is unclear  
            whether that 15 days would be in addition to, or would run  
            concurrently with, the 15-day time period that the LAO would  
            have to complete the title and summary for a proposed state  
            initiative measure.  

          The author's office has indicated that the author believes that  
            the fiscal estimate should be able to be completed in a much  
            shorter period of time if there is only one entity - the LAO -  
            responsible for the preparation of that estimate, as opposed  
            to the two entities - the DOF and the JLBC - that are  
            responsible for the preparation of those estimates under  
            existing law.  However, it is not clear whether the LAO will  
            be able to be as thorough in its fiscal estimate if the amount  
            of time provided for the preparation of that estimate is cut  
            in half.  The LAO already does the bulk of the work in  
            preparing fiscal estimates for state initiative measures under  
            existing practice, and it regularly takes most or all of the  
            25 working days to prepare those fiscal estimates.

          The committee may wish to consider whether the shortened  
            timeline provided for the preparation of fiscal estimates of  
            proposed state initiative measures under this bill could  
            negatively impact the LAO's ability to provide a complete and  
            accurate fiscal estimate, particularly in light of the new  
            duties assigned to the LAO under this bill.  
           








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           5)Constitutional Amendment Required  :  Article II, Section 10 (d)  
            of the California Constitution requires that the AG prepare a  
            title and summary for any state initiative or referendum  
            measure before petitions for that measure can be circulated.   
            As such, the policy proposed by this bill cannot be  
            implemented by statute alone - making the LAO responsible for  
            preparing titles and summaries of state initiative and  
            referendum measures requires a constitutional amendment.

          This bill specifies that it will become operative only if the  
            voters approve ACA 20 from this Legislative session.  ACA 20  
            (Niello) requires the LAO, instead of the AG, to prepare the  
            titles and summaries for proposed state initiative and  
            referendum measures.  ACA 20 was heard in this committee last  
            June, when it failed passage on a 2-5 vote.

           6)Arguments in Support  :  According to the Howard Jarvis  
            Taxpayers Association, "Current law provides that the Attorney  
            General has the duty to write the ballot title and summary for  
            each statewide initiative measure.  AB 1968 would transfer  
            this authority to the non-partisan Legislative Analyst's  
            Office (LAO).  We believe that the LAO, who routinely provides  
            advice on California policy issues for the State Legislature  
            is the most qualified to perform this function.  In fact, the  
            LAO is already required to do a detailed fiscal analysis  
            (jointly with the Department of Finance) and policy analysis  
            of each measure before signatures can be obtained."  
           
           7)Technical Issues  :  AB 753 (Adams), Chapter 373, Statutes of  
            2009, reorganized provisions of the Elections Code governing  
            the preparation of official titles and summaries of proposed  
            state initiatives and state ballot measures.  This bill  
            proposes to reinstate language to Section 13247 of the  
            Elections Code that was repealed by AB 753, however, due to  
            the reorganization of the code that was included in AB 753,  
            that language is now obsolete.  To avoid adding obsolete  
            language to the Elections Code, committee staff recommends  
            deleting Section 20 from the bill.

          Additionally, this bill contains a drafting error.  On page 3,  
            lines 28-30 should be amended to reflect that this bill gives  
            the LAO the sole authority to prepare the fiscal estimate for  
            a proposed initiative measure.  To correct this drafting  
            error, committee staff recommends the following amendment:









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          On page 3, strike out lines 28 to 30, inclusive, and insert:

          included, within 15 days after determining that a fiscal  
            estimate or opinion is required pursuant to Section 9005.  If  
            during

           8)Previous Legislation  :  AB 319 (Niello) of 2009 was  
            substantively identical to this bill, though the language in  
            this bill differs from that in AB 319 due to a reorganization  
            of parts of the Elections Code.  AB 319 failed passage in this  
            committee on a 2-5 vote.

          AB 2209 (Niello) of 2008 would have required the LAO, instead of  
            the AG, to prepare the title and summary for state initiatives  
            and referenda and the ballot title for state measures that  
            would appear on the ballot.  AB 2209 failed passage in this  
            committee on a 2-5 vote.

          ACA 18 (Adams) of 2008 would have required the LAO, instead of  
            the AG, to prepare the title and summary for state initiative  
            and referendum measures.  ACA 18, which was a companion  
            measure to AB 2209, was not referred to committee until after  
            AB 2209 had failed passage.  As such, ACA 18 was not heard in  
            this committee.

          SB 1208 (Ducheny) of 2008 would have required the fiscal  
            estimate for a proposed state initiative measure to be  
            prepared by the LAO instead of by the DOF and the JLBC.  SB  
            1208 was vetoed by the Governor, who argued that the joint  
            responsibility of the DOF and the JLBC in preparing fiscal  
            estimates for proposed state initiatives was important in  
            ensuring that the Legislative and Executive branches of  
            government agreed on the possible fiscal impact of a proposed  
            initiative.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Howard Jarvis Taxpayers Association

           Opposition 
           
          None on file.
           








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          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094