BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2220
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2220 (Gatto)
          As Introduced  February 24, 2012
          Majority vote 

           ELECTIONS           4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Bonilla, Allen,     |Ayes:|Fuentes, Blumenfield,     |
          |     |Swanson                   |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Donnelly, Logue           |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires a specified disclaimer to be included in the 
          summary statement prepared by the Legislative Analyst (Analyst) 
          for a proposed initiative measure that provides new revenues for 
          new or existing programs, as specified.  Specifically,  this 
          bill  :  

          1)Requires the Analyst to include the following paragraph in the 
            summary statement of a qualified initiative that appears in 
            the state ballot pamphlet if the Analyst 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 its enactment or if the initiative measure 
            allows the Legislature to reallocate the increase in revenues.








                                                                  AB 2220
                                                                  Page  2



           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, 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 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.

           COMMENTS  :  According to the author, "AB 2220 would require that 
          voters receive more information on the impact of specific ballot 
          initiatives.  The structural budget deficit has resulted in 
          significant pressure on vital public services.  The size of the 
          structural deficit has been impacted, in part, by voter-approved 
          initiatives which both expend State resources and which raise 
          revenues and commit them to specific programs. ?  
           
          "This measure would not impact the public's ability to 
          qualify or approve an initiative which raises revenue and 
          commits it to specific programs.  It would simply require 
          that the Legislative Analyst's Office provide information 
          about the initiative's commitment of resources to a 
          specific purpose. ? 

          "It is in the best interest of voters to know, up-front, 
          about the conditions of their approval for such 
          initiatives. This simple disclosure would help clarify to 
          voters, without comment on the merits of the initiative 
          itself, the disposition of revenue streams created by an 
          initiative without provisions which allow a recommitment to 
          other priorities during times when priorities may change."

          Since the implementation of the initiative process in 1911, 
          there have been a number of approved measures that have 
          required a certain portion of GF spending to be dedicated 
          to a specific purpose.  These measures restrict the 
          Legislature's ability to alter the relative shares of GF 
          spending provided to program areas in any given year.  For 
          instance, Proposition 98 of 1988, provided for a minimum 
          level of total spending (GF and local property taxes 
          combined) on K-14 education in any given year.  Proposition 
          98 accounts for over 40% of annual state GF spending.  
          Proposition 49 of 2002, requires that the state spend a 








                                                                  AB 2220
                                                                  Page  3


          certain amount on after-school programs, which exceeded 
          $540 million in fiscal year 2010-11.  This bill will inform 
          voters of initiative measures that generate revenue and 
          earmark that revenue for a specific purpose.

          California voters passed an initiative, Proposition 9, in 
          1974 that created the Fair Political Practices Commission 
          and codified significant restrictions and prohibitions on 
          candidates, officeholders, and lobbyists.  That initiative 
          is commonly known as the Political Reform Act (PRA).  
          Amendments to the PRA that are not submitted to the voters 
          must further the purposes of the initiative and require a 
          two-thirds vote of both houses of the Legislature, unless 
          the amendments are to specified provisions to add 
          information to the ballot pamphlet.  This bill would 
          require additional information to be included in the ballot 
          pamphlet, and therefore requires a majority vote.

          AB 65 (Gatto) of 2011, which is similar to this bill, was 
          vetoed by Governor Brown.  In his veto message, the 
          Governor wrote, "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."


           Analysis Prepared by  :    Nichole Becker / E. & R. / (916) 
          319-2094 


                                                                FN: 0003304