BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND  
                           CONSTITUTIONAL AMENDMENTS
                          Senator Loni Hancock, Chair


          BILL NO:  SB 541             HEARING DATE:3/31/09
          AUTHOR:   PAVLEY             ANALYSIS BY:Frances Tibon  
          Estoista
          AMENDED:  AS INTRODUCED
          FISCAL:   YES
          
                                     SUBJECT
           
          Elections: ballot cards and voting systems

                                   DESCRIPTION  
          
           Existing law  requires the Secretary of State (SOS) to adopt  
          regulations governing the manufacture, distribution, and  
          inventory control of punchcards, and requiring the  
          inspection of facilities that manufacture and store  
          punchcards.  

           Existing law  requires the SOS to approve a punchcard  
          manufacturer prior to the manufacturer's providing of  
          punchcards for use in California elections. 

           This bill  would instead require the SOS to adopt  
          regulations governing the manufacture, finishing, quality  
          standards, distribution and inventory control of ballot  
          cards, and the periodic inspection of facilities that  
          manufacture, finish, and store ballot cards.   This bill   
          also requires the SOS to approve each ballot card  
          manufacturer or finisher prior to a manufacturer or  
          finisher providing ballot cards for use in California  
          elections.

           This bill  would require that the costs of the inspection be  
          paid for by the ballot card manufacturer or finisher, and  
          would require that, no later than 5 days prior to  
          inspection, the ballot card manufacturer or finisher  
          disclose to the SOS in writing of any known flaws or  
          defects in its current or past manufacturing or finishing  
          process of ballot cards or of manufactured or finished  
          ballot cards that could adversely affect the casting or  
          tallying of votes.  










           This bill  would require a manufacturer or finisher of  
          ballot cards, once approved by the SOS, to notify the SOS  
          and the affected local elections officials in writing  
          within two business days after it discovers any flaw or  
          defect in its ballot card manufacturing or finishing  
          process or manufactured or finished ballot cards that could  
          adversely affect the casting or tallying of votes.

           This bill  would require that before a user may purchase  
          ballot cards, the user shall request in writing a release  
          for a specific quantity of these ballot cards from the SOS.  
          If the request is in order, the SOS shall then issue a  
          written release for that quantity to the manufacturer, or  
          to the authorized warehouse, and to the user.  The format,  
          text, and use of the request and release shall be governed  
          by regulations adopted by the Secretary of State.  Nothing  
          in this bill will prohibit a verbal request or verbal  
          release, provided that this verbal request or verbal  
          release is immediately confirmed in writing.  The  
          regulations shall expressly deny the manufacturing of  
          ballot cards without a specific release.

           Existing law  specifies the procedures for storing of unused  
          ballot paper and the destruction of unused ballot paper.

           Existing law  provides that any person who makes, uses,  
          keeps, or furnishes to others, any paper or punchcards  
          watermarked or overprinted in imitation of ballot paper or  
          punchcards is subject to a penalty punishable by a fine not  
          exceeding $1,000, or by imprisonment in the state prison  
          for 16 months, two or three years, or by both the fine and  
          imprisonment.

           This bill  replaces several references to "punchcard" and  
          replaces it with the more generic term "ballot card".
           
          Existing law  provides for a revolving fund that is  
          continuously appropriated for the purpose of purchasing  
          ballot paper and punchcards.

           This bill  would repeal this obsolete provision.

           Existing law  provides that any person or corporation owning  
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          or being interested in any voting system or part of a  
          voting system may apply to the SOS to examine it and report  
          on its accuracy and efficiency to fulfill its purpose.   
          Existing law further requires the SOS complete his or her  
          examination without undue delay.

           This bill would require as part of its application, the  
          vendor of a voting system or the part of a voting system to  
          notify the SOS in writing of a known defect, flaw, or error  
          in the hardware, software, or firmware of the voting system  
          or a part of the voting system.  The SOS shall not begin  
          his or her examination until he or she receives a completed  
          application from the vendor of the voting system or the  
          part of the voting system.  The vendor shall also notify  
          the SOS in writing of a defect, flaw, or error in the  
          hardware, software, or firmware of the voting system or a  
          part of the voting system discovered after the application  
          is submitted and before the SOS submits his or her voting  
          system examination report.

           This bill  would also require that within 72 hours after  
          receiving a vendor's written notification of a defect,  
          flaw, or error, the SOS shall notify the United States  
          Election Assistance Commission (EAC) of the problem.   
          Within 30 days after receiving a vendor's written  
          notification of a defect, flaw, or error, the SOS shall  
          submit a report regarding the problem to the EAC.

           Existing law  requires the SOS to file a voting system  
          report.  If the report states that the voting system can be  
          used, it shall be deemed approved by the SOS and machines  
          or devices of its kind may be adopted for use at elections.
           

          This bill  would provide that when a voting system or a part  
          of a voting system has been approved by the SOS, the vendor  
          shall notify the SOS and all local elections officials who  
          use the system in writing of a defect, flaw, or error in  
          the hardware, software, or firmware of the voting system or  
          a part of the voting system within five working days after  
          the vendor learns of the defect, flaw, or error.

           This bill  further provides that no later than January 8,  
          2010, the vendor of a voting system or a part of a voting  
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          system that has been approved by the SOS prior to the  
          effective date of this bill shall notify the SOS and all  
          local elections officials who use the system in writing of  
          a defect, flaw, or error in the hardware, software, or  
          firmware of the voting system or a part of the voting  
          system the vendor was aware of prior to January 1, 2010.   
          Within 72 hours after receiving a vendor's written  
          notification of a defect, flaw, or error before a voting  
          system or a part of a voting system has been approved by  
          the SOS or no later than January 8, 2010, the SOS shall  
          notify the EAC of the problem.  Within 30 days after  
          receiving a vendor's written notification of a defect,  
          flaw, or error, the SOS shall submit a report regarding the  
          problem to the EAC.

           Existing law  permits the SOS to seek injunctive and  
          administrative relief when a voting system has been  
          compromised by the addition or deletion of hardware,  
          software, or firmware without prior approval. 

           This bill  would instead permit the SOS to seek injunctive  
          and administrative relief when a voting system or a part of  
          a voting system has been compromised by the addition or  
          deletion of hardware, software, or firmware without prior  
          approval or is defective due to an undisclosed hardware,  
          software, or firmware flaw, defect, or error. 

           Existing law  permits the SOS to seek all of the following  
          relief for an unauthorized change or undisclosed defect,  
          flaw, or error in hardware, software, or firmware to any in  
          a voting system certified approved or conditionally  
          certified approved in California:

             1.   Monetary damages from the offending party or  
               parties, not to exceed $10,000 per violation.  Each  
               voting machine found to contain the unauthorized  
               hardware, software, or firmware is considered a  
               separate violation.  Damages imposed pursuant to this  
               provision are apportioned 50 percent to the county in  
               which the violation occurred, if applicable, and 50  
               percent to the SOS for purposes of bolstering voting  
               systems security efforts. 
             2.   Immediate commencement of decertification  
               proceedings to withdraw for the voting system in  
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               question. 
             3.   Prohibiting the manufacturer or vendor of a voting  
               system from doing any elections-related business in  
               the state for one, two, or three years.
             4.   Refund of all moneys paid by a locality for a  
               compromised voting system whether or not the voting  
               system has been used in an election.
             5.   Any other remedial actions authorized by law to  
               prevent unjust enrichment of the offending party.

          Prior to seeking any measure of relief under this  
          provision, the SOS must hold a public hearing.

           This bill  additionally allows the SOS to seek all of the  
          aforementioned relief for an undisclosed defect, flaw, or  
          error in hardware, software or firmware in a voting system  
          approved or conditionally approved in California.

                                    BACKGROUND  
          
           The Humboldt County Incident  .  Currently, ballot vendors or  
          voting system vendors are not required to inform the SOS  
          about previously undisclosed flaws in their product before  
          or after an election.  A recent incident in Humboldt County  
          during the November 2008 elections found that Premier  
          Elections Solutions (formerly Diebold), GEMS software  
          erroneously deleted nearly 200 votes cast.

          It was later learned that while Premier was aware of the  
          problem at least four years before the election in which  
          its effects came to light in Humboldt County, and although  
          Premier made limited attempts (pre-election) to notify  
          affected counties of the software flaw, they failed to  
          provide notice of the defect to the National Association of  
          State Election Directors (NASED), the EAC, SOS or to the  
          public.

                                     COMMENTS  
          
            1. According to the author  :  SB 541 is designed to ensure  
             the integrity of California's voting system and requires  
             early notification steps to prevent future errors,  
             discrepancies and uncertainties surrounding our voting  
             processes.  The current lack of disclosure can result in  
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             serious election delays or jeopardize or nullify votes  
             in counties.

                                    POSITIONS  

          Sponsor: Secretary of State

           Support: American Federation of State, County and  
                   Municipal Employees (AFSCME), AFL-CIO

           Oppose:  None received































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