BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SCA 10
          Author:   Ducheny (D), et al
          Amended:  8/17/09 
          Vote:     27

           
           SENATE ELEC., REAP. & CONST. AMEND. COMM. :  3-2, 6/16/09
          AYES:  Hancock, DeSaulnier, Liu
          NOES:  Walters, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 8/27/09
          AYES:  Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,  
            Yee
          NOES:  Cox, Denham, Runner, Walters, Wyland


           SUBJECT  :    Statewide initiative measures

           SOURCE  :     Author


           DIGEST  :    This constitutional amendment requires the  
          Secretary of State to transmit a copy of an initiative  
          measure certified for the ballot to each house of the  
          Legislature no later than 176 days prior to the election at  
          which the measure is to be voted upon.  Within 30 days the  
          Legislature may propose an amended form of the initiative  
          measure by adopting a concurrent resolution.  If the  
          Legislature proposes an amended form of the initiative  
          measure, the measure would provide that if the proponent,  
          or a majority of the proponents if there is more than one  
          proponent, of the initiative measure accepts the proposed  
          amendments, the Legislature's proposal would appear on the  
                                                           CONTINUED





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          ballot in place of the certified initiative measure.  The  
          measure requires that, if the amended form proposed by the  
          Legislature is not accepted, information regarding the  
          proposed amended form be included in the ballot materials  
          relating to the initiative measure, as prescribed by  
          statute.

           ANALYSIS  :    Existing law, pursuant to the California  
          Constitution, requires the Secretary of State (SOS) to  
          submit statewide initiative measures at the next general  
          election held at least 131 days after they qualify or at  
          any special statewide election held prior to that general  
          election.  The Governor may also call a special statewide  
          election on the measure.  There is no mechanism for  
          amending an initiative once it has been approved for  
          circulation by the SOS or once it has qualified for the  
          ballot.  Existing statutory law requires the appropriate  
          committees of the Legislature to conduct joint public  
          hearings of any initiative measure which has qualified for  
          the ballot.  These hearings are for informational purposes  
          only and must be held at least 30 days prior to the  
          election. 
           
          This constitutional amendment permits the Legislature to  
          propose amendments to initiatives that amend the  
          Constitution which may be accepted by the proponents.   
          Specifically, this constitutional amendment provides for  
          all of the following:

          1. The SOS must transmit a copy of each initiative measure  
             that has qualified for the ballot to the Legislature no  
             later than 176 days prior to the date of the relevant  
             election.

          2. Within 30 days of receipt of the initiative, the  
             Legislature may propose an amended form of the  
             initiative by adopting a concurrent resolution by a  
             majority vote in each house.

          3. Amendments proposed by the Legislature may only address  
             the subject matter contained in the original initiative.

          4. If the proponent, or a majority of the proponents,  
             accepts the Legislature's amendments no later than 131  







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             days prior to the date of the election, that amended  
             version will be placed on the ballot in place of the  
             original version.  

          5. If the Legislature's amendments are not accepted by that  
             date that substitution shall not occur, but information  
             regarding the proposed amendments shall be included in  
             the ballot materials relating to the initiative measure,  
             as may be prescribed by statute.

          6. In order to facilitate this process, an initiative  
             measure that proposes to amend the Constitution shall be  
             submitted by the SOS at the next general or special  
             statewide election held at least 176 days after the  
             measure qualifies instead of the current 131 days.

           Background  

          According to the National Conference of State Legislatures,  
          eight states currently offer some form of an "indirect"  
          initiative process.  Maine, Michigan, Nevada, Ohio, Utah,  
          and Washington provide for an indirect initiative process  
          for statutory initiatives only.  Mississippi provides the  
          process only for constitutional amendment initiatives while  
          Massachusetts includes both statutory and constitutional  
          amendment initiatives.

          In the indirect initiative process, a proposed initiative  
          is referred to the Legislature after proponents have  
          gathered the required number of signatures.  The  
          Legislature has the option to enact, defeat or amend the  
          measure.  Depending on the Legislature's action, the  
          proponents may continue to pursue placement on the ballot  
          for a popular vote.  In three states (Massachusetts, Ohio  
          and Utah), proponents must gather additional signatures to  
          place the measure on the ballot; in the others, it  
          automatically goes to the ballot.

          In several states (Maine, Massachusetts, Michigan, Nevada  
          and Washington), it is specifically provided for in law  
          that the Legislature may place an alternate proposition on  
          the ballot with the initiative.  Voters may vote for one or  
          the other or for neither.








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          Alaska's and Wyoming's initiative processes are sometimes  
          cited as indirect. However, instead of requiring that an  
          initiative be submitted to the Legislature for action, they  
          require only that an initiative cannot be placed on the  
          ballot until after a legislative session has convened and  
          adjourned, thus providing the Legislature with the  
          opportunity to address the issue if it so chooses.

          Two states, Utah and Washington, offer both the direct and  
          indirect initiative process.  Proponents have the option of  
          choosing either.  In Utah, the initial signature  
          requirement is lower for the indirect process.  This serves  
          as an incentive for proponents to choose the indirect route  
          and thus incorporate the Legislature into the process.   
          Qualifying an initiative directly to the ballot requires  
          signatures equal to 10 percent of the votes cast for  
          Governor in the last election.  Presenting an indirect  
          initiative to the Legislature requires signatures equal to  
          five percent of the votes cast for Governor in the last  
          election.  However, if the indirect initiative is rejected  
          by the Legislature, proponents must gather additional  
          signatures equal to 10 percent of the votes cast for  
          Governor, creating a total signature threshold for indirect  
          initiatives that is higher than that for direct  
          initiatives.  As a consequence, use of Utah's indirect  
          initiative is significantly lower than use of the direct  
          method.

          California had an indirect initiative process until 1966.   
          It was available in addition to the direct process, and  
          proponents were permitted to choose the process they  
          preferred.  The indirect option was rarely used, and voters  
          approved its abolition in 1966.

          Nevada currently has an indirect process for statutory  
          initiatives.  At one time, it also had the indirect process  
          for initiative constitutional amendments, but it abolished  
          this option in 1962.  Voters approved a constitutional  
          amendment referred by the Legislature that abolished the  
          indirect process for constitutional amendments and at the  
          same time imposed the requirement that any constitutional  
          amendment be approved by a majority vote in two successive  
          elections.








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           Comments

           According to the author, lack of legislative review has  
          resulted in the state and/or federal courts either  
          partially or fully striking down 18 of the 41  
          constitutional and statutory initiative measures approved  
          by California voters between 1964 and 1996.  This  
          constitutional amendment seeks to provide a way for the  
          Legislature and the public to participate (by way of  
          hearings) in the analysis of an initiative, while still  
          allowing the initiative proponent to have control over  
          their measure.

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

          According to the Senate Appropriations Committee staff,  
          "SCA 10 will result in one-time General Fund costs of  
          approximately $298,000 to print an analysis of the measure  
          and arguments for and against the measure in the statewide  
          voter pamphlet.  If this measure is enacted by January 28,  
          2010 it will appear on the June 8, 2010 statewide primary  
          election ballot.  If it is not enacted by January 28, 2010,  
          but is enacted before June 24, 2010, SCA 10 will appear on  
          the November 2, 2010 statewide general election ballot.  
          There could be additional future costs if the proposed  
          amendments to an initiative are not accepted by the  
          proponents, and therefore, according to the provisions of  
          SCA 10 will be included in the ballot materials.  The most  
          recent cost estimates from the Secretary of State's Office  
          are $74,500 per page for printing and mailing, and the  
          above fiscal impact reflects four pages of text."  

           SUPPORT  :   (Verified  1/12/10)

          Western Growers

           OPPOSITION  :    (Verified  1/12/10)

          California Taxpayers' Association

           ARGUMENTS IN SUPPORT  :    Western Growers states:  "SCA 10  
          provides that the legislature be afforded an opportunity to  
          analyze and propose amendments to every voter-qualified  







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          initiative prior to the election and further affords the  
          initiative sponsor(s) the opportunity to accept such  
          amendment without having to restart the process of  
          initiative submission, title and summary, signature  
          gathering and qualification.  In the event the sponsor(s)  
          reject the Legislature's proposed amendment(s), voters  
          would be informed of the Legislature's analysis and  
          proposed amendments in ballot materials.  These reforms  
          strike a reasonable balance between protecting the voters'  
          right to qualify and enact initiatives and the benefits of  
          legislative review to suggest amendments that might  
          ameliorate unintended consequences of poorly drafted  
          provisions or identify and clarify provisions that may be  
          in conflict with other laws or provisions of the same  
          initiative.  Voters already receive substantive impartial  
          fiscal analyses of initiatives in ballot materials.  SCA 10  
          would enhance public discussion and consideration of the  
          policy implications of a proposed initiative without  
          restricting the peoples' right to the initiative."

           ARGUMENTS IN OPPOSITION  :    The California Taxpayers'  
          Association is opposed for the following reasons:

          1. "Potentially Misleads Voters.  This constitutional  
             amendment would allow an initiative to change after it  
             has qualified for the ballot.  Voters provide signatures  
             to qualify a measure for the ballot based on the  
             description of the measure.  Allowing the measure  
             subsequently to be amended potentially could be  
             misleading, as the measure that qualified ultimately may  
             not be the measurer that appears on the ballot.  The  
             ability to change a measure without further signatures  
             could lead to collusion between the proponents of a  
             measure and the Legislature, as controversial pieces of  
             the measure could be withheld until after it qualified  
             for the ballot.  For these reasons, SCA 10 is unlikely  
             to improve the initiative process and will instead  
             undermine the integrity of the signature gathering  
             process."

          2. "Undermines Two-Thirds Vote for Constitutional  
             Amendments.  Current law requires a two-thirds vote of  
             both houses of the Legislature before the Legislature  
             may place a measure on the statewide ballot.  This  







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             constitutional amendment would eviscerate the two-thirds  
             vote requirement by allowing the Legislature to amend a  
             qualified initiative by majority vote if the proponents  
             accept the amendment.  As previously stated, this  
             creates a situation in which the Legislature may collude  
             with initiative proponents to qualify a controversial  
             initiative without the requisite signatures and without  
             a two-thirds vote."  
           

          DLW:mw  1/14/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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