BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 541|
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                              UNFINISHED BUSINESS


          Bill No:  SB 541
          Author:   Pavley (D)
          Amended:  9/3/09 
          Vote:     21

           
           SENATE ELEC., REAPP. & CONST. AMEND. CMTEE  :  3-2, 3/31/09
          AYES:  Hancock, DeSaulnier, Liu
          NOES:  Walters, Strickland
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  22-15, 5/14/09
          AYES:  Alquist, Calderon, Corbett, Correa, DeSaulnier,  
            Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal,  
            Negrete McLeod, Oropeza, Pavley, Romero, Simitian,  
            Steinberg, Wiggins, Wolk, Wright, Yee
          NOES:  Aanestad, Ashburn, Benoit, Cogdill, Cox, Denham,  
            Dutton, Harman, Hollingsworth, Huff, Maldonado, Runner,  
            Strickland, Walters, Wyland
          NO VOTE RECORDED:  Cedillo, Padilla, Vacancy

           ASSEMBLY FLOOR  :  50-29, 9/9/09 - See last page for vote


           SUBJECT  :    Elections:  ballot cards and voting systems

           SOURCE  :     Secretary of State


           DIGEST  :    This bill amends existing law governing  
          oversight of ballot cards to include finishing and quality  
          standards, to specify the cost of biennial facility  
                                                           CONTINUED





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          inspections be paid for by the ballot card manufacturer or
          finisher, and specify disclosure requirements of any known  
          flaw, defect, or error, as specified.  This bill also  
          repeals an obsolete provision for a revolving fund to  
          purchase ballot paper and punchcards and replaces the term  
          "punchcard" with "ballot card."

           Assembly Amendments  (1) add definitions, (2) change the  
          terminology of "fault" to "flaw", (3) delete Senate  
          provisions requiring the costs of biennial inspections be  
          paid for by the ballot card manufacturer or provider, and  
          (4) place monetary values on penalties connected with the  
          bill.

           ANALYSIS :    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:

          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 of any defect, fault, or failure  
             disclosed to the SOS by a voting system vendor pursuant  
             to this bill. 








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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/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.
              
             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." 

           Background  







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           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, the United States Election  
          Assistance Commission, the SOS or to the public.


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

          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. 

           SUPPORT  :   (Verified  9/10/09) 

          Secretary of State (source)
          American Federation of State, County and Municipal  
          Employees, AFL-CIO
          Disability Rights California

           OPPOSITION  :    (Verified  9/10/09) 

          Election Technology Council

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "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 serious election delays or  
          jeopardize or nullify votes in counties."







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          The author's office indicates they have taken amendments to  
          speak to opposition concerns but the opposition still  
          remains opposed and they will work with them to clarify the  
          bill.

          AFSCME supports this bill "because it seeks to make known  
          the flaws of a voting system before the system is adopted  
          by California.  Previous elections in California have shown  
          what can occur when a voting system does not work correctly  
          with votes going uncounted or longer than anticipated vote  
          counts.  Ensuring ballots can be used by voters and  
          counters correctly are key for a seamless and transparent  
          election process."

          Disability Rights California states:  "This bill will help  
          prevent future errors and discrepancies surrounding the  
          voting processes by requiring vendors and ballot  
          manufacturers to notify the Secretary of State about  
          problems and flaws before and after an election.  Further,  
          the Secretary of State will have a variety of relief  
          available if there are flaws or defects that were not  
          reported.  This helps provide a secure voting system for  
          all, including for people with disabilities."

           ARGUMENTS IN OPPOSITION  :    The opposition has concerns  
          with the penalty provisions of the bill.  
           

           ASSEMBLY FLOOR : 
          AYES:  Ammiano, Arambula, Beall, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jones, Krekorian, Lieu,  
            Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A.  
            Perez, V. Manuel Perez, Portantino, Ruskin, Salas,  
            Saldana, Skinner, Solorio, Swanson, Torlakson, Torres,  
            Torrico, Yamada, Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson,  
            Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman,  
            Harkey, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran,  







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            Villines
          NO VOTE RECORDED:  Vacancy


          DLW:mw  9/10/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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