BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON ELECTIONS 
                         AND CONSTITUTIONAL AMENDMENTS
                           Senator Lou Correa, Chair


          BILL NO:   SB 202            HEARING DATE: 5/3/11
          AUTHOR:    HANCOCK           ANALYSIS BY:  Frances Tibon 
          Estoista
          AMENDED:   AS INTRODUCED
          FISCAL:    YES
          
                                     SUBJECT

           Ballot initiatives: filing fees

                                   DESCRIPTION  
          
           Existing law  establishes a process for the Attorney General 
          (AG) to prepare a summary of the chief purposes and points 
          of a proposed statewide initiative measure.  Requires the 
          AG to provide a copy of the title and summary to the 
          Secretary of State (SOS) within 15 days after receipt of 
          the final version of a proposed initiative measure, or if a 
          fiscal estimate or opinion is to be included, within 15 
          days after receipt of the fiscal estimate or opinion 
          prepared by the Department of Finance (DOF) and the Joint 
          Legislative Budget Committee (JLBC).

           Existing law  requires proponents of any initiative measure, 
          at the time of submitting the draft of the measure to the 
          AG, to pay a fee of $200, which shall be placed in a trust 
          fund in the office of the Treasurer and refunded to the 
          proponents if the measure qualifies for the ballot within 
          two years from the date the summary is furnished to the 
          proponents.  If the measure does not qualify within that 
          period, the fee shall be immediately paid into the General 
          Fund of the state.

           This bill  would increase the current $200 filing fee to 
          $2,000.

                                    BACKGROUND  
          
           Increasing Number of Initiatives and Ballot Summaries  .  
          According to the AG's office, there has been a steady 
          increase in the number of statewide initiative proposals 









          submitted in the last few decades.  The following 
          illustrates the increased number of filed initiative 
          proposals:

          47 from 1960 to 1969
          180 from 1970 to 1979
          282 from 1980 to 1989
          391 from 1990 to 1998
          647 from 2000 to 2009

          Although reports show that there has been a recent decline 
          in the number of voter approved initiatives, the AG is 
          still required to develop a title and summary for each 
          initiative, regardless of whether the initiative qualifies 
          for the ballot.

          In California, proponents of an initiative measure must 
          submit the text of a measure to the AG's office for 
          preparation of a title and summary and pay a $200 filing 
          fee before they can circulate petitions for signatures.  
          Originally set in 1943, the filing fee was intended to 
          cover the administrative costs of the initiative process to 
          the state and to discourage frivolous proposals.

          Over the course of the 66 years since the initiative filing 
          fee was designated, the nature of the initiative process 
          has changed dramatically.  Data provided by the AG's office 
          shows the median cost in 2007-2008 to title and summarize 
          each of the 126 initiatives for that cycle was $3,157.  In 
          total, the state received $22,800 in filing fees but it 
          spent $418,459 of taxpayer money (General Fund) and 2933.75 
          hours of paid state attorney time to title and summarize 
          all 126 measures.  One measure from the November 2008 
          General Election cost nearly $20,000 to title and 
          summarize; since the fee was refunded, the entire cost was 
          paid through the General Fund.

                                     COMMENTS  
          
            1. According to the author  , SB 202 does not target 
             good-faith individuals representing broad concerns, as 
             $2,000 is not a prohibitive dollar amount and if the 
             initiative qualifies, then the fee is completely 
             refunded.  Rather, this bill targets those bad actors 
          SB 202 (HANCOCK)                                       Page 
          2  
           








             who abuse the initiative process at the expense of the 
             state.  SB 202 will restore the filing fee to a level 
             close to - but still less than - the level originally 
             sought in 1943, and more accurately reflect the actual 
             cost to the general fund.

            2. Previous legislation  .  AB 1832 (Saldana) 2010 was 
             similar to this bill, but raised the filing fees 
              incrementally  .  The Governor vetoed AB 1832 stating in 
             relevant part:   "While the argument may be made that 
             the current fee is no longer a sufficient deterrent, I 
             cannot support increasing the fee ten-fold.  While 
             well-funded special interest groups would have no 
             problem paying the sharply increased fee, it will make 
             it more difficult for citizen groups to qualify an 
             initiative."

                                    POSITIONS  
          
          Sponsor: Author

           Support: None received

           Oppose:  Howard Jarvis Taxpayers Association


















          SB 202 (HANCOCK)                                       Page 
          3