BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 541
                                                                  Page  1

          SENATE THIRD READING
          SB 541 (Pavley)
          As Amended  September 3, 2009
          Majority vote

           SENATE VOTE  :22-15  
           
           ELECTIONS           4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Coto, Mendoza,      |Ayes:|De Leon, Ammiano,         |
          |     |Swanson                   |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Fuentes, Hall,     |
          |     |                          |     |John A. Perez,            |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Hill           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Adams, Bill Berryhill     |Nays:|Conway, Duvall, Harkey,   |
          |     |                          |     |Miller, Audra Strickland  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Requires voting system vendors and ballot paper  
          manufacturers to notify the Secretary of State (SOS) of any  
          flaws or defects that they discover in their products.  Requires  
          ballot paper manufacturers and finishers to pay the costs  
          associated with facility inspections by the SOS.  Specifically,  
           this bill  :   

          1)Requires a voting system vendor that knows of, or becomes  
            aware of, a defect, fault, or failure in the voting system or  
            a part of the voting system, to notify the SOS and all local  
            elections officials who use the system of that defect, fault,  
            or failure.  Requires this notification to be made within 30  
            calendar days from the date after the vendor learns of the  
            defect, fault, or failure, or at the time the system is  
            submitted for review by the SOS.  Requires all known defects,  
            faults, or failures on systems that are currently approved for  
            use in California to be disclosed no later than January 8,  
            2010.

          2)Requires the SOS to notify the United States Election  
            Assistance Commission (EAC) of any defect, fault, or failure  
            disclosed to the SOS by a voting system vendor pursuant to  
            this bill.








                                                                  SB 541
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          3)Requires a ballot card manufacturer or finisher to disclose  
            any known flaw or defect in its manufacturing or finishing  
            process in writing to the SOS not later than five working days  
            before the SOS begins his or her initial inspection of that  
            manufacturer's or finisher's facilities.  Requires a ballot  
            card manufacturer or finisher that has been approved by the  
            SOS to notify the SOS and affected local elections officials  
            in writing within two business days after it discovers any  
            flaw or defect in its manufacturing or finishing process.

          4)Requires the SOS to inspect manufacturing, finishing, and  
            storage facilities for ballot cards biennially.

          5)Permits the SOS to seek injunctive and administrative relief  
            when a voting system or part of a voting system is defective  
            due to a known hardware, software, or firmware defect, fault,  
            or failure that has not been disclosed as required by this  
            bill.  Permits the SOS to seek all of the following relief for  
            a known but undisclosed defect, fault, or failure in a voting  
            system or part of a voting system approved or conditionally  
            approved for use in California:

             a)   Refund of all moneys paid by a local agency for a voting  
               system or part of a voting system that is defective due to  
               a known but undisclosed defect, fault, or failure;

             b)   A civil penalty from the offending party not to exceed  
               $50,000 per violation; and,

             c)   A penalty of $1,000 for each day between the deadline  
               for the vendor to disclose the defect, fault, or failure  
               and the day when the required disclosure is filed with the  
               SOS.

          6)Repeals an obsolete provision of law that establishes a  
            revolving fund for the purchase of ballot paper.

          7)Changes terminology in the Elections Code from "punchcards" to  
            "ballot cards."

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor absorbable costs to the SOS for enforcement of  
          the bill's provisions, and potential revenue from civil  
          penalties.








                                                                  SB 541
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           COMMENTS  :  According to the author, "Under current law, ballot  
          vendors and voting system vendors are not required to inform the  
          Secretary of State about previously undisclosed flaws in their  
          product before or after an election. . . . This bill would help  
          prevent future errors and discrepancies surrounding our voting  
          processes, by requiring voting system vendors and ballot  
          manufacturers to notify the Secretary of State about problems  
          and flaws with their respective systems and ballots, before and  
          after an election."

          This bill is prompted in part by an incident in Humboldt County  
          during the November 2008 election that resulted in the deletion  
          of nearly 200 votes cast in that election.  The deletion was  
          caused by a programming error in a version of the election  
          management software produced by Premier Elections Solutions.   
          Premier knew of this problem at least four years prior to the  
          November 2008 election, and developed a "work-around" to avoid  
          the deletion of ballots.  While Premier did notify elections  
          officials in the 11 affected California counties of the  
          "work-around," they did not explain why it was necessary.   
          Furthermore, Premier did not provide notice of the defect to the  
          National Association of State Election Directors, the EAC, SOS  
          or to the public.  When the Humboldt County employee who had  
          been notified of the "work-around" left Humboldt County for  
          another job in 2007, that employee did not pass the information  
          about the "work-around" along to anyone else in the county  
          elections official's office.

          Please see the policy committee analysis for a full discussion  
          of this bill.


           Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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