BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2220
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2220 (Gatto)
          As Amended August 20, 2012
          Majority vote
           
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          |ASSEMBLY:  |48-25|(May 7, 2012)   |SENATE: |32-5 |(August 27,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    E. & R. 

          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.  
           
          The Senate amendments  :

          1)Revise the language that the Analyst is required to include in 
            the summary statement of a qualified initiative that appears 
            in the state ballot pamphlet when the Analyst determines that 
            the measure will provide for an increase in revenues to fund 
            new or existing programs, and require the Analyst to include 
            language in the summary statement if the initiative creates a 
            new fund, or creates or changes a funding formula for one or 
            more specified programs.  Require the language to be one of 
            the following, as applicable:

             a)   "Unless changed by a future voter-approved ballot 
               measure, this initiative would permanently dedicate state 
               funding to the program(s) identified, and these funds would 
               not be available to meet other responsibilities of the 
               state.";

             b)   "Unless changed by a future voter-approved ballot 
               measure, or by a supermajority vote of each house of the 
               Legislature and approval by the Governor, this initiative 
               would permanently dedicate state funding to the program(s) 
               identified, and these funds would not be available to meet 
               other responsibilities of the state."; 

             c)   "Unless changed by a future voter-approved ballot 
               measure, or by a supermajority vote of each house of the 
               Legislature and approval by the Governor, this initiative 








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               would permanently create and lock in a formula for the 
               state budget."; or,

             d)   "Unless changed by a future voter-approved ballot 
               measure, this initiative would permanently dedicate the 
               revenue it generates to the program(s) identified, and 
               these revenues would not be available to meet other 
               responsibilities of the state." 

          2)Provide that the summary described in d) above, will 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.

          3)Require the Analyst, if the Analyst determines that none of 
            the summaries stated above are applicable, to add a paragraph 
            at the end of the summary statement stating, in boldface type 
            and in a form similar to the above prescribed summaries, the 
            effect of the initiative measure on state funding 
            requirements. 

           AS PASSED BY THE ASSEMBLY  , this bill was similar to the version 
          approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs. 
           

           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."  
           
          Since the implementation of the initiative process in 1911, 
          there have been a number of approved measures that have required 








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          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 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.

          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."

          The Senate amendments modify the language that the Analyst is 
          required to add to the summary statement of an initiative 
          measure that the Analyst prepares.  Additionally, if the Analyst 
          determines that none of the summary descriptions listed in this 
          bill are applicable, the Senate amendments instead require the 
          Analyst to prepare a summary statement which states the effect 
          of the initiative measure on state funding requirements.  This 
          bill, as amended in the Senate, is consistent with the Assembly 
          actions.

          Please see the policy committee analysis for a full discussion 
          of this bill.

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



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