BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1968
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1968 (Niello) - As Amended:  May 3, 2010

          Policy Committee:                              ElectionsVote:4-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill provides the Legislative Analyst's Office (LAO) with  
          exclusive responsibilities with regard to state initiatives and  
          referenda, and modifies the time allowed for preparing the title  
          and summary and fiscal estimate for proposed 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.

          2)Requires the LAO, instead of the Joint Legislative Budget  
            Committee (JLBC) and the Department of Finance (DOF), to  
            assess the fiscal impacts of a proposed state initiative  
            measure.

          3)Provides that the LAO, upon receipt of the final version of a  
            proposed initiative, has 30 days to prepare the circulating  
            title and summary and the accompanying fiscal estimate to the  
            Secretary of State.

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

          5)Makes all of the above operative only upon approval by the  
            voters of ACA 20 of the 2009-10 Regular Session.

           FISCAL EFFECT  

          1)Minor absorbable costs to the LAO associated with the added  
            responsibilities of this bill.








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          2)The AG will realize cost savings from the shift of  
            responsibilities to the LAO.

           COMMENTS  

           1)Purpose  .  The author asserts that ballot title and summary  
            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 author also contends that "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?The LAO is a non-partisan organization that provides  
            credible and impartial analysis for the Legislature. ?[AB  
            1968] will assure California voters that they are not being  
            persuaded by partial or misleading information."

           2)Constitutional Amendment Required  : Article II, Section 10 (d)  
            of the state 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,  
            one of the changes proposed by this bill cannot be implemented  
            by statute alone.  This bill specifies that it will become  
            operative only if the voters approve ACA 20 from this  
            Legislative session. ACA 20 failed passage in the Assembly  
            Elections Committee last June.

           3)Opposition  . The AG argues that all three branches of  
            government have an opportunity to inform the public of the  
            meaning of initiative measures-the Executive Branch through  
            the AG's title and summary; the LAO through the ballot  
            summary; and the Judicial Branch through court orders stemming  
            from ballot-related litigation-and that AB 1968 eliminates the  








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            Executive Branch from this process, which the AG argues is  
            inappropriate. The AG further argues that "?the Constitution  
            has charged a constitutional officer having political  
            accountability to the voters with this responsibility.  The  
            People's desire for such accountability, which is not shared  
            by the Legislative Analyst, should not be lightly undone."

           4)Prior Legislation  .  AB 319 (Niello) of 2009, which was  
            substantively identical to this bill, failed passage in the  
            Assembly Elections Committee. 

            AB 2209 (Niello) of 2008, which 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, failed passage in  
            the Assembly Elections Committee.

            SB 1208 (Ducheny) of 2008, which 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, was  
            vetoed.  The governor 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. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081