BILL ANALYSIS                                                                                                                                                                                                    �





                                                                AB 2220

                                                                Page  1


        GOVERNOR'S VETO
        AB 2220 (Gatto)
        As Amended August 20, 2012
        2/3 vote

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        |ASSEMBLY:  |48-25|(May 7, 2012)   |SENATE: |32-5 |(August 27, 2012)    |
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        |ASSEMBLY:  |56-24|(August 29,     |        |     |                     |
        |           |     |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 









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             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 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 









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        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 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.
         
        GOVERNOR'S VETO MESSAGE  :

        "I continue to share the author's concern that voters should 
        understand the impact of their vote for or against an initiative 
        measure.  









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        "The Legislative Analyst already prepares a detailed fiscal summary 
        about each measure, and I am not convinced that adding one of these 
        rote disclaimers will provide more clarity for voters."



         Analysis Prepared by:     Nichole Becker / E. & R. / (916) 319-2094 
        FN: 0005996