BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  ACA 12
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          Date of Hearing:   August 25, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  ACA 12 (Gatto) - As Introduced:  December 9, 2010 

          Policy Committee:                              ElectionsVote:5-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This measure proposes to amend the State Constitution to allow 
          the Legislature to propose amendments to statewide initiatives 
          prior to such measures appearing on the ballot. Specifically, 
          this bill:

          1)Requires the Secretary of State to transmit to the Legislature 
            each initiative measure certified for the ballot at least 176 
            days prior to the election.

          2)Authorizes the Legislature, within 30 days of receiving a 
            certified initiative measure, to propose one amended form of 
            the measure by concurrent resolution adopted by a majority 
            vote of each house.

          3)Stipulates that, if the measure's proponent, or a majority of 
            the proponents, accepts the amended form in the concurrent 
            resolution within 131 days prior to the election, the amended 
            form shall be placed on the ballot in lieu of the certified 
            initiative. If the amended form is not accepted by the 
            proponents, the original certified initiative shall be placed 
            on the ballot, but information regarding the proposed 
            amendment shall be included in the ballot materials.

           FISCAL EFFECT  

          One-time General Fund costs of about $220,000, to include the 
          analysis and arguments for and against the measure, in the state 
          voter pamphlet.

           COMMENTS  









                                                                  ACA 12
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           1)Purpose  . According to the author, a lack of legislative review 
            of initiatives has resulted in the courts striking down 
            initiatives, as well as other unintended consequences. ACA 12 
            would provide a means for initiative proponents to fix 
            unforeseen flaws in their proposal before it goes to the 
            ballot. There author asserts, "There is little room for 
            mischief because the proponents would reserve the right to 
            refuse any proposed changes by the Legislature at any time. 
            Unlike other states where the legislature can put a competing 
            initiative comprised of their proposed changes, ACA 12 would 
            only put on the ballot what the proposed changes were in an 
            effort to give voters more information as to the 
            inner-workings of the initiative and any potential flaws that 
            may exist."

           2)Background  . 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 used successfully only 
            once, however, and voters approved its abolition in 1966. 
            According to the National Conference of State Legislatures 
            (NCSL), eight states currently offer some form of an indirect 
            initiative process-Maine, Massachusetts, Michigan, 
            Mississippi, Nevada, Ohio, Utah, and Washington. 

            The main argument against the indirect initiative is that, 
            where the process is currently offered, legislatures rarely 
            take up the initiative proposal and, when they do, they rarely 
            engage in negotiation with initiative proponents to seek a 
            compromise and almost always reject initiative proposals, 
            which then end up on the ballot for a popular vote.  

          3)Speaker's Commission on the California Initiative Process  . In 
            2000, then-Assembly Speaker Robert M. Hertzberg created a 
            commission on the California initiative process. The 
            commission's January 2002 final report included a 
            recommendation to establish an indirect initiative process 
            allowing the Legislature to enact an initiative into law, with 
            the proponents consent, thereby removing the need for the 
            initiative to go to the ballot. The one key difference between 
            ACA 19 and the commission's recommendation is that, under ACA 
            19, all initiatives would be subject to Legislative review 
            while the commission recommended that the indirect initiative 
            process be voluntary.









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           4)Opposition  . The California Taxpayers Association raises 
            several operational concerns including disagreements with 
            initiative sponsors and confusion regarding additional ballot 
            information.
           
          5)Related Legislation  . ACA 19 (Allen), pending in the Assembly, 
            also proposes an indirect initiative process, whereby the 
            Legislature could proposal an alternative constitutional 
            amendment and enact legislation, in lieu of a statutory 
            initiative, with the concurrence of the initiative proponents.

           6)Prior Legislation  . ACA 13 (Hernandez) of 2009 and ACA 18 
            (Nation) of 2005, both of which proposed establishing an 
            indirect initiative process, were never brought up for a vote 
            on the Assembly Floor.

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