BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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                                 THIRD READING


          Bill No:  SB 202
          Author:   Hancock (D)
          Amended:  9/8/11
          Vote:     21

           
           SENATE FLOOR  :  Not relevant

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Elections:  Ballot measure

           SOURCE  :     Author


           DIGEST  :    This bill requires all future initiatives and 
          referendums to be placed on November General Elections and 
          requires the Secretary of State to submit ACA 4 at the 
          November 4, 2014 statewide general election instead of the 
          2012 statewide presidential election.

           Assembly Amendments  delete Senate version of the bill 
          relating to initiative filing fees increase and instead 
          adds the above language.

           ANALYSIS  :   Existing law permits the voters to propose and 
          adopt a statute or constitutional amendment through the 
          power of the initiative, and to approve or reject a statute 
          or a part of a statute through the power of the referendum, 
          by presenting to the Secretary of State a petition that 
          sets forth the text of the proposed measure and is 
          certified to have been signed by a specified number of 
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          electors.

          Existing law requires the Secretary of State to submit a 
          certified initiative measure at the next general election 
          held at least 131 days after the measure qualifies for the 
          ballot or at any statewide special election that is held 
          prior to that general election and is held at least 131 
          days after the measure qualifies for the ballot, and 
          further requires the Secretary of State to submit a 
          certified referendum measure at the next general election 
          held at least 31 days after the measure qualifies for the 
          ballot or at any statewide special election that is held 
          prior to that general election.  Under existing law, 
          "general election" is defined to mean either the election 
          held throughout the state on the first Tuesday after the 
          first Monday in November of each even-numbered year or any 
          statewide election held on a regular election date, as 
          specified.

          This bill provides that, notwithstanding the above 
          definition of "general election," that term means, for 
          purposes of submitting to the voters an initiative or 
          referendum measure that is certified for the ballot on or 
          after July 1, 2011, only the election held throughout the 
          state on the first Tuesday after the first Monday in 
          November of each even-numbered year.

          Existing law requires the Secretary of State to submit ACA 
          4 of the 2009-10 Regular Session, a proposed legislative 
          constitutional amendment relating to state finance, to the 
          voters at the 2012 statewide presidential primary election, 
          as specified.

          This bill repeals those provisions and, instead, requires 
          the Secretary of State to submit ACA 4 to the voters at the 
          November 4, 2014, statewide general election.

          ACA 4 (Res. Chapter 174, Statues of 2010) proposes various 
          changes to the state budget process and to the state's 
          Budget Stabilization fund.  As with all constitutional 
          amendments, ACA 4 requires the approval of the voters. 
          Among other provisions, AB 1619 (Chapter 732, Statutes of 
          2010) requires ACA 4 to be submitted to the voters at the 
          2012 statewide presidential primary election.  







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          In addition to specifying the election at which ACA 4 will 
          appear on the ballot, AB 1619 also outlined the text to be 
          used as the ballot label, title and summary for ACA 4 when 
          it is placed on the ballot.  Subsequent to the 
          Legislature's enactment of AB 1619, the Court of Appeal of 
          the State of California for the Third Appellate District 
          ruled in  Howard Jarvis Taxpayer Association v. Bowen  (2011) 
          192 Cal. App. 4th 110, that the Political Reform Act 
          requires the Attorney General to prepare the ballot label 
          and ballot title and summary for state ballot measures, and 
          that an attempt by the Legislature to override that 
          requirement for any particular measure was not a valid 
          amendment of the PRA, without the approval of the voters.

          In light of this decision, the ballot label, and ballot 
          title and summary language contained in AB 1619 is deemed 
          to be invalid.  This bill will, therefore, delete the 
          following language from Chapter 732, Statutes of 2010, and 
          the Attorney General will prepare the label, title and 
          summary as provided in existing law.

           Ballot Label for ACA 4  :  'RAINY DAY' BUDGET STABILIZAIN 
          FUND.  Changes the budge process.  Could limit future 
          deficits and spending by increasing the size of the state 
          'rainy day' fund and requiring above-average revenues to be 
          deposited into it, for use during economic downturns and 
          other purposes.

           Ballot Title and Summary for ACA 4  :  SATE BUDGET CHANGES 
          CALIFORNIA BUDGET PROCESS.  LIMITS STATE SPENDING.  
          INCREASES 'RAINY DAY' BUDGET STABILIZATIN FUND.  Increase 
          amount of potential savings in the state 'rainy day' fund 
          from five percent to 10 percent of the General fund.  
          Requires three percent of the general revenues to be 
          deposited each year into the state 'rainy day' fund, except 
          when revenues drop below last year's budget, adjusted for 
          population and inflation, and other limited purposes, 
          including for a declared emergency.

           History of Initiatives on Primary Election Ballots  .  Since 
          the initiative and referendum processes were created in 
          1911, the state Constitution has always provided that 
          qualified measures will appear on the ballot at the next 







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          general election held after a specified time period, or at 
          any special election called by the governor held prior to 
          that general election.  In 1972, however, the Secretary of 
          State placed an initiative on the ballot at a primary 
          election that was not consolidated with a statewide special 
          election for the first time, and has since continued the 
          practice of including initiative on the allot at primary 
          elections.

          Although it appears that the courts have not been asked to 
          consider a challenge to the Secretary of State's practice 
          of placing initiative and referendum measures on the allot 
          at primary elections, a dissenting opinion in a state 
          Supreme Court case raised a question about whether such a 
          practice was consistent with the state Constitution.  In 
          her dissenting opinion in  Brosnahan v Eu  , (1982) 31 Cal.3d 
          1, Chief Justice Bird noted that the constitutionality of 
          submitting initiatives to votes at primary elections "would 
          appear to be an open question."  In a footnote to her 
          dissenting opinion, the chief Justice wrote:

            An additional issue, not raised by parties her, 
            apparently has never been resolved by this court.  The 
            Constitution requires that initiative and referendum 
            measures be submitted to the voters "at the next 
            general election" after the measures qualify, or at a 
            special election called by the Governor. (Cal. Const. 
            art. II �8, subd. (c) and �9, subd.(c)?)  The 
            Elections Code defines a general election as "the 
            election held throughout the stat on the first Tuesday 
            after the first Monday of November in each 
            even-numbered year." (Elec. Code, �20.)  A special 
            election is an election the timing of which is not 
            otherwise prescribed by law.  (Elec. Code, �27.)  The 
            election scheduled for June of 1982 is a regularly 
            scheduled "direct primary" (see Elec. Code, �23) - not 
            a special election or a general election.  Thus, the 
            constitutionality of submitting an initiative to the 
            voters at a June primary election would appear to be 
            an open question.

          Subsequent to the Supreme Court's decision in  Brosnahan v 
          Eu  , the definition of "general election" was revised in AB 
          1466 (Statham), Chapter 405, Statutes of 1993, to include 







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          regularly scheduled statewide primary elections.

          According to information from the National Conference on 
          State legislatures, only four (Alaska, California, North 
          Dakota, and Oklahoma) of the 24 states that have the 
          initiative process allow initiatives to be placed on the 
          ballot at a primary or special election. 

          Those measures, relating to term limits and cigarette 
          taxes, will be unaffected by SB 202 because those measures 
          were certified for the ballot in 2010.  This bill provides 
          that the change in the definition of "general election" 
          applies to initiative or referendum measures that are 
          certified for the ballot on or after July 1, 2011.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2011-12     2012-13    
           2013-14   Fund  

          Ballot initiativesunknown, costs in general elections 
          offset  General
                              By saving sin primary elections in even 

                              Numbered years

           SUPPORT  :   (Verified  9/9/11)

          California Labor Federation
          SEIU

           OPPOSITION  :    (Verified  9/9/11)

          Acclamation Insurance Management Services
          Allied Managed Care
          California Broadcasters Association
          California Chamber of Commerce
          California Chapter of American Fence Association
          California Fence Contractors Association







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          California Independent Oil Marketers  Association
          California League of Food Processors
          California Manufacturers and Technology Association
          Engineering Contractors Association
          Flasher Barricade Association
          Howard Jarvis Taxpayers Association
          Marin Builders Association

           ARGUMENTS IN OPPOSITION  :    Proponents of this bill writes: 
           "SB 202 makes an important clarification California law 
          that is both consistent with the original intent of the 
          initiative law and the State Constitution. In fact, the 
          State Constitution clearly specifies that an initiative is 
          to appear "at the next general election held at least 131 
          days after it qualifies or at any special statewide 
          election held prior to that general election."  This bill 
          ensures that this Constitutional requirement is adhered to, 
          which was the case for all initiatives prior to 1970.  
          SB202 will also greatly increase voter participation in the 
          initiative process.  This should be a goal of all 
          Californians.  It is clear that initiatives have far 
          reaching impact on schools, the environment, businesses and 
          our everyday lives.  Yet, very few voters actually 
          participate in those decisions because many initiatives 
          appear in primary elections when voter participation is 
          historically and consistently much lower than in general 
          elections.  As reported in the  Ventura County Star  , in 
          every election since 2000 more than 2 million Californians 
          voted in the general election than in the primary election. 
           In the presidential elections the differences were even 
          more profound.  Clearly this demonstrates the need for 
          initiatives to appear during general elections, to ensure 
          that more Californians participate in the initiative 
          process and decide on issues that impact their lives."  
           

          DLW:do  9/9/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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