BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2220
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2220 (Gatto) - As Introduced:  February 24, 2012 

          Policy Committee:                              ElectionsVote:4-2

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Requires the Legislative Analyst's Office (LAO) to include the 
            following paragraph in the summary statement of a qualified 
            initiative in the state ballot pamphlet if the LAO determines 
            that the measure will provide for new revenues to fund new or 
            existing programs:

          "Unless changed by a future measure approved by the voters, this 
            initiative would forever dedicate the revenue it generates to 
            programs identified in the initiative by its backers, and 
            these revenues would not be available to meet other 
            responsibilities of the state not identified in the 
            initiative." 

          2)Provides that the paragraph described above shall not be 
            printed in the summary statement for any initiative measure 
            that provides that the new revenues are to be deposited 
            without restriction into the General Fund (GF) commencing at a 
            future date after enactment or if the measure allows the 
            Legislature to reallocate the increase in revenues.
           
          FISCAL EFFECT  

          Negligible fiscal impact. For every additional page required in 
          the state ballot pamphlet, the cost is about $55,000. However, 
          the Secretary of State's (SOS's) office formats the Voter 
          Information Guide in 16-page increments, thus there is often 
          blank space available for additional information. Moreover, 
          additional pages would likely not be necessary solely to include 
          the additional language specified in this bill.








                                                                  AB 2220
                                                                  Page  2


           COMMENTS  

           1)Purpose  . According to the author, "All too often, voters 
            are unaware of the intersection between the initiative 
            process and the budget process. There is a lack of 
            understanding that revenue streams created via the 
            initiative process are essentially put into silos, 
            untouchable by the legislature during the budget process. 
            Unless these initiatives say otherwise, the monies go 
            into special funds that cannot be used for anything but 
            programs specified in the initiative. This especially 
            comes to light during tough budget times such as now when 
            the public wonders why the legislature simply cannot 
            shift certain monies from special funds into the state's 
            general fund to help fund." 
            The author contends that the disclosure required by AB 
            2220 will help voters to understand any limitation on the 
            use of new revenues proposed by an initiative.

           2)Prior Legislation  . AB 65 (Gatto) of 2011, which was similar to 
            this bill, was vetoed, with the governor stating, "I am 
            sympathetic to the author's concerns that voters should 
            understand more clearly the consequences of initiatives that 
            dedicate revenue to a specific purpose.  But the rote 
            disclaimer mandated by this bill won't provide voters greater 
            clarity."

          AB 1021 (Gordon) of 2011, which required additional information 
            to be included in petitions and the ballot pamphlet for 
            initiatives resulting in costs over $1 million, without 
            providing additional funding, was also vetoed, with the 
            governor stating, "the additional disclosure required by this 
            bill will add words, but not greater understanding about the 
            financial impact of a voter initiative."

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