BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 202 (Hancock)
          
          Hearing Date: 5/16/2011         Amended: As Introduced
          Consultant: Maureen Ortiz       Policy Vote: E&CA  3-2
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 202 increases the fee to submit a proposed 
          ballot initiative or referendum to the Attorney General for 
          preparation of the circulating title and summary from $200 to 
          $2,000.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Revenue increase       ---unknown, potentially $100 annually--   
                General          
          _________________________________________________________________
          ____

          STAFF COMMENTS: 
          
          Although the increased fee may only generate minor additional 
          revenue, it will likely reduce the number of frivolous filings 
          which will result in a substantial reduction in workload to the 
          Attorney General's (AG) office.  If 50 filings are received that 
          result in an increased fee of $1,800 each, additional revenue be 
          $90,000 annually.

          The existing $200 fee imposed for filing a proposed ballot 
          initiative with the Attorney General was originally set in 1943 
          and has never been increased.  It is currently inadequate to 
          cover the administrative costs incurred to prepare the title and 
          summary. For example, the costs in 2007-08 for the AG's Office 
          to prepare titles and summaries were $418,459, while only 
          $22,800 in filing fees was received.  If this fee had been 
          increased annually according to the Consumer Price Index, it 
          would currently be $2,480.  

          Over the last ten years, the number of initiative proposals that 
          were submitted to the Attorney General's Office increased by 60% 
          over the prior decade, going from 391 measures in the 1990s to 








          SB 202 (Hancock)
          Page 1




          647 measures in the most recent ten year period.  The AG is 
          required to develop a title and summary for each initiative, 
          regardless of whether the initiative qualifies for the ballot.

          Existing law requires that prior to the circulation of any 
          initiative or referendum petition for signatures, the text of 
          the proposed measure must be submitted to the Attorney General 
          with a written require that a circulating title and summary of 
          the chief purpose and points of the proposed measure be 
          prepared.  The proponents are required to submit a $200 fee 
          along with the proposed measure which is placed in a trust fund 
          in the Treasurer's office.  If the measure consequently 
          qualifies for the ballot within two years from the date the 
          summary is furnished to the proponents, the $200 fee is 
          refunded.  If the measure does not qualify within that period of 
          time, the fee is transferred to the General Fund.

          AB 1832 (Saldana) in 2010, and AB 436 (Saldana) in 2009, were 
          similar to this measure but would have raised the $200 filing 
          fee incrementally to $2,000 in 2017.  Both bills were vetoed by 
          the Governor who stated in part relating to AB 1832, "While the 
          argument may be made that the current fee is no longer a 
          sufficient deterrent (against frivolous filings), 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."