BILL NUMBER: AB 65AMENDED BILL TEXT AMENDED IN SENATE AUGUST 24, 2011 AMENDED IN SENATE JULY 13, 2011 AMENDED IN SENATE JUNE 27, 2011 AMENDED IN ASSEMBLY MARCH 22, 2011 AMENDED IN ASSEMBLY FEBRUARY 2, 2011 INTRODUCED BY Assembly Member Gatto DECEMBER 9, 2010 An act to amend Sections 9005 and 9087 of the Elections Code, and to amend Section 88003 of the Government Code, relating to elections. LEGISLATIVE COUNSEL'S DIGEST AB 65, as amended, Gatto. Elections: statewide ballot pamphlet. The California Constitution requires the Attorney General to prepare a title and summary of an initiative measure prior to its circulation for signatures. Existing law directs the Attorney General, in preparing the circulating title and summary for an initiative, to include an estimate of the amount of increase or decrease of revenues or costs to the state. Existing law requires the Department of Finance and the Joint Legislative Budget Committee to jointly make and deliver that estimate to the Attorney General so that he or she may include it in the circulating title and summary. This bill would, except as specified, based on a determination in the fiscal analysis by the Department of Finance and the Joint Legislative Budget Committee that a measure would provide new revenues for new or existing programs, require that specified language, which advises that the revenue generated by the measure will be forever dedicated for the purposes specified in the measure unless the measure is changed by a future initiative, be provided to the Attorney General and included in the circulatory title and summary. The Political Reform Act of 1974 requires the Legislative Analyst to prepare an impartial analysis of each initiative measure to appear on the ballot, and provides that the Legislative Analyst is solely responsible for determining the content of the analysis. Existing law directs the Legislative Analyst to prepare an unbiased fiscal analysis of a measure that is included in the ballot pamphlet stating whether the measure would result in increased or decreased costs to the state and an estimate of those costs or savings. The Political Reform Act of 1974, an initiative statute, generally provides that the Legislature may amend the act to further the act's purposes upon a 2/3 vote of each house and compliance with specified procedural requirements. The act also provides that, notwithstanding this requirement, the Legislature may without restriction amend specified provisions of the act to add to the ballot pamphlet information regarding candidates or other information. This bill would, except as specified, require, if a fiscal analysis prepared by the Legislative Analyst determines that a measure would provide new revenues for new or existing programs, that specified language be added to the ballot pamphlet advising that the revenue generated by the measure will be forever dedicated to the purposes specified in the measure unless the measure is changed by a future initiative measure. The bill also would contain a finding and declaration of the Legislature that the bill permits or requires additional information to be included in the ballot pamphlet in accordance with the provision of the Political Reform Act of 1974 described above that authorizes the Legislature to add information to the ballot pamphlet. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 9005 of the Elections Code is amended to read: 9005. (a) The Attorney General, in preparing a circulating title and summary for a proposed initiative measure, shall, in boldface print, include in the circulating title and summary either the estimate of the amount of any increase or decrease in revenues or costs to the state or local government, or an opinion as to whether or not a substantial net change in state or local finances would result if the proposed initiative is adopted. (b) The estimate as required by this section shall be made jointly by the Department of Finance and the Joint Legislative Budget Committee, who shall deliver the estimate to the Attorney General so that he or she may include the estimate in the circulating title and summary prepared by him or her. (c) The estimate shall be delivered to the Attorney General within 25 working days from the date of receipt of the final version of the proposed initiative measure from the Attorney General, unless, in the opinion of both the Department of Finance and the Joint Legislative Budget Committee, a reasonable estimate of the net impact of the proposed initiative measure cannot be prepared within the 25-day period. In the latter case, the Department of Finance and the Joint Legislative Budget Committee shall, within the 25-day period, give the Attorney General their opinion as to whether or not a substantial net change in state or local finances would result if the proposed initiative measure is adopted. (d) A statement of fiscal impact prepared by the Legislative Analyst pursuant to subdivision (b) of Section 12172 of the Government Code may be used by the Department of Finance and the Joint Legislative Budget Committee in the preparation of the fiscal estimate or the opinion. (e) (1) Except as provided in paragraph (2), if an initiative measure submitted for circulating title and summary is determined in the joint analysis of the Joint Legislative Budget Committee and Department of Finance to provide new revenues for new or existing programs, a paragraph shall be provided to the Attorney General, at the same time as the estimate provided pursuant to subdivision (c), which shall be included in the circulating title and summary prepared by the Attorney General pursuant to Section 9004, stating as follows: "The following disclaimer is provided pursuant to Assembly Bill No. 65 of the 2011-12 Regular Session:" "Unless changed by a future initiative, the taxpayer dollars generated by this initiative will be forever dedicated to the purposes listed in this initiative, and cannot beusedspent by the state for any other purpose, even during a budget emergency." (2) Paragraph (1) shall not apply if the initiative measure provides that the new revenues are to be deposited without restriction into the General Fund commencing at a future date after its enactment , or if the initiative measure allows the Legislature to reallocate the revenues . SEC. 2. Section 9087 of the Elections Code is amended to read: 9087. (a) The Legislative Analyst shall prepare an impartial analysis of the measure describing the measure and including a fiscal analysis of the measure showing the amount of any increase or decrease in revenue or cost to state or local government. If it is estimated that a measure would result in increased cost to the state, an analysis of the measure's estimated impact on the state shall be provided, including an estimate of the percentage of the General Fund that would be expended due to the measure, using visual aids when appropriate. An estimate of increased cost to the state or local governments shall be set out in boldface print in the ballot pamphlet. (b) The analysis shall be written in clear and concise terms, so as to be easily understood by the average voter, and shall avoid the use of technical terms wherever possible. The analysis may contain background information, including the effect of the measure on existing law and the effect of enacted legislation which will become effective if the measure is adopted, and shall generally set forth in an impartial manner the information the average voter needs to adequately understand the measure. To the extent practicable, the Legislative Analyst shall utilize a uniform method in each analysis to describe the estimated increase or decrease in revenue or cost of a measure, so that the average voter may draw comparisons among the fiscal impacts of measures. The condensed statement of the fiscal impact summary for the measure prepared by the Attorney General to appear on the ballot shall contain the uniform estimate of increase or decrease in revenue or cost of the measure prepared pursuant to this subdivision. (c) The Legislative Analyst may contract with a professional writer, educational specialist, or another person for assistance in writing an analysis that fulfills the requirements of this section, including the requirement that the analysis be written so that it will be easily understood by the average voter. The Legislative Analyst may also request the assistance of a state department, agency, or official in preparing his or her analysis. (d) Prior to submitting the analysis to the Secretary of State, the Legislative Analyst shall submit the analysis to a committee of five persons, appointed by the Legislative Analyst, for the purpose of reviewing the analysis to confirm its clarity and easy comprehension to the average voter. The committee shall be drawn from the public at large, and one member shall be a specialist in education, one member shall be bilingual, and one member shall be a professional writer. Members of the committee shall be reimbursed for reasonable and necessary expenses incurred in performing their duties. Within five days of the submission of the analysis to the committee, the committee shall make recommendations to the Legislative Analyst as it deems appropriate to guarantee that the analysis can be easily understood by the average voter. The Legislative Analyst shall consider the committee's recommendations, and he or she shall incorporate in the analysis those changes recommended by the committee that he or she deems to be appropriate. The Legislative Analyst is solely responsible for determining the content of the analysis required by this section. (e) The title of the measure that appears on the ballot shall be amended to contain a summary of the Legislative Analyst's estimate of the net state and local government fiscal impact. (f) (1) Except as provided in paragraph (2), if an initiative measure qualifies for the ballot and the Legislative Analyst's analysis prepared pursuant to this section determines that the initiative measure would provide new revenues for new or existing programs, a paragraph shall be added to the summary statement prepared pursuant to Section 9085 of the ballot pamphlet prepared pursuant to Section 9081, stating as follows: "The following disclaimer is provided pursuant to Assembly Bill No. 65 of the 2011-12 Regular Session:" "Unless changed by a future initiative, the taxpayer dollars generated by this initiative will be forever dedicated to the purposes listed in this initiative, and cannot beusedspent by the state for any other purpose, even during a budget emergency." (2) Paragraph (1) shall not apply if the measure provides that the new revenues are to be deposited without restriction into the General Fund commencing at a future date after its enactment , or if the initiative measure allows the Legislature to reallocate the revenues . SEC. 3. Section 88003 of the Government Code is amended to read: 88003. (a) The Legislative Analyst shall prepare an impartial analysis of the measure describing the measure and including a fiscal analysis of the measure showing the amount of any increase or decrease in revenue or cost to state or local government. Any estimate of increased cost to local governments shall be set out in boldface print in the ballot pamphlet. The analysis shall be written in clear and concise terms which will easily be understood by the average voter, and shall avoid the use of technical terms wherever possible. The analysis may contain background information, including the effect of the measure on existing law and the effect of enacted legislation which will become effective if the measure is adopted, and shall generally set forth in an impartial manner the information which the average voter needs to understand the measure adequately. The Legislative Analyst may contract with professional writers, educational specialists or other persons for assistance in writing an analysis that fulfills the requirements of this section, including the requirement that the analysis be written so that it will be easily understood by the average voter. The Legislative Analyst may also request the assistance of any state department, agency, or official in preparing his or her analysis. Prior to submission of the analysis to the Secretary of State, the Legislative Analyst shall submit the analysis to a committee of five persons appointed by the Legislative analyst for the purpose of reviewing the analysis to confirm its clarity and easy comprehension to the average voter. The committee shall be drawn from the public at large, and one member shall be a specialist in education, one shall be bilingual, and one shall be a professional writer. Members of the committee shall be reimbursed for reasonable and necessary expenses incurred in performing their duties. Within five days of the submission of the analysis to the committee, the committee shall make such recommendations to the Legislative Analyst as it deems appropriate to guarantee that the analysis can be easily understood by the average voter. The Legislative Analyst shall consider the committee's recommendations, and he or she shall incorporate in the analysis those changes recommended by the committee that he or she deems to be appropriate. The Legislative Analyst is solely responsible for determining the content of the analysis required by this section. The title of the measure which appears on the ballot shall be amended to contain a summary of the Legislative Analyst's estimate of the net state and local government financial impact. (b) (1) Except as provided in paragraph (2), if an initiative measure qualifies for the ballot and the Legislative Analyst's analysis prepared pursuant to this section determines that the initiative measure would provide new revenues for new or existing programs, a paragraph shall be added to the summary statement prepared pursuant to Section 9085 of the Elections Code of the ballot pamphlet prepared pursuant to Section 9081 of the Elections Code, stating as follows: "Unless changed by a future initiative, the taxpayer dollars generated by this initiative will be forever dedicated to the purposes listed in this initiative, and cannot be used by the state for any other purpose, even during a budget emergency." (2) Paragraph (1) shall not apply if the measure provides that the new revenues are to be deposited without restriction into the General Fund commencing at a future date after its enactment. SEC. 4. The Legislature finds and declares that this act permits or requires the inclusion of additional information on the ballot pamphlet in accordance with Section 88007 of the Government Code.