BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 145
                                                                  Page  1

          Date of Hearing:   August 29, 2012

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     AB 145 (Pan) - As Amended:  August 20, 2012
           
                           CONCURRENCE IN SENATE AMENDMENTS
           
          
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          |ASSEMBLY:  |     |(June 3, 2011)  |SENATE: |25-13|(August 28,    |
          |           |     |                |        |     |2012)          |
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          SUBJECT  :   Voter registration: paid registration activities.

           SUMMARY  :   Prohibits a person from paying another person or 
          receiving payment for registering voters if that payment is on a 
          per-affidavit basis.

           The Senate amendments  delete the Assembly version of the bill, 
          and instead:

          1)Prohibit a person from offering to pay or paying money or 
            other valuable consideration to another person, either 
            directly or indirectly, on a per-affidavit basis to assist 
            another person to register to vote by receiving the completed 
            affidavit of registration.

          2)Prohibit a person from receiving money or other valuable 
            consideration, either directly or indirectly, on a 
            per-affidavit basis to assist another person to register to 
            vote by receiving the completed affidavit of registration.

          3)Provide that nothing in this bill shall be construed to 
            prohibit payment for assisting another person to register to 
            vote by receiving the completed affidavit that is not, either 
            directly or indirectly, on a per-affidavit basis.

          4)Make corresponding and technical changes.

           EXISTING LAW  : 

          1)Requires any person who accepts money or other valuable 
            consideration in return for assisting with voter registration 







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            to sign and affix on the voter registration form his or her 
            full name, telephone number, address, and the name and phone 
            number of the person, company, or organization, if any, that 
            agrees to pay money or valuable consideration for the 
            completed affidavit of registration.

          2)Requires any person, company, or other organization that 
            agrees to pay money or other valuable consideration to a 
            person for assisting with voter registration to maintain 
            specific records.

          3)Establishes penalties for fraudulent activity related to 
            signature gathering and voter registration.

           AS PASSED BY THE ASSEMBLY  , this bill repealed and recast 
          provisions establishing the High-Speed Rail Authority and 
          established the Department of High-Speed Trains.
           
          FISCAL EFFECT  :  Unknown. This bill is keyed non-fiscal by the 
          Legislative Counsel.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               Recently reports of organized voter registration fraud 
               taking place in Sacramento County have come to light. 
               Since then we have found that the problem lies with 
               "Bounty Hunters" companies and organizations that pay 
               per-affidavit for switched voter registrations cards. 
               By eliminating per-affidavit payment we will eliminate 
               an incentive to forge affidavits while protecting the 
               integrity of voters. This will reduce the volume of 
               voter cards that are invalid due to fraud thereby 
               reducing the amount of staff time the county 
               registrars need to spend validating them. Decreasing 
               the backlog and strain on the county registrars can 
               save significant resources for county governments that 
               are struggling in our difficult budget climate.

               Jill LaVine, Sacramento County's Registrar of Voters, 
               reported that her office found "numerous" examples of 
               voters having their political party affiliation 
               switched to "Republican" against their wishes. This 
               and many similar reports have taken place all over 







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               California. The Sacramento County Registrar was also 
               inundated by phone calls the day of the June election, 
               with more victims of voter registration fraud that 
               weren't caught until they actually reached the ballot 
               box. People who went to the polls and received ballots 
               for parties they never signed up for felt that their 
               rights as a voter had been violated. Voter 
               Registration Fraud is a real crime and the victims of 
               these crimes need to have their voices heard.

           2)Voter Registration Fraud  :  While some voter registration 
            drives pay employees on an hourly or salaried basis, other 
            voter registration drives pay workers a specified amount of 
            money for each completed voter registration card.  In some 
            cases, voter registration drives that pay workers on a 
            per-registration basis only pay workers for voters who 
            register with a specific political party, or pay the workers a 
            larger amount of money for voters who register with a specific 
            political party.  While these per-registration payments may 
            create incentives to register voters with a particular 
            political party, they also may create financial incentives for 
            the individuals who are registering voters to commit fraud.

          In each of the last four election cycles, complaints have been 
            filed by voters who said they were misled into changing their 
            party affiliations.  According to media reports of these 
            complaints, the voter registration workers who were accused of 
            misleading these voters were paid as much as $15 for each new 
            voter that the worker registered with a particular political 
            party.  

          In 2006, complaints were reported in Orange, Riverside, and San 
            Bernardino Counties.  According to the Orange County Register, 
            11 individuals were eventually convicted of falsifying voter 
            registrations and other charges in connection with the 
            complaints in Orange County, and eight of those 11 served jail 
            time.  In 2008, press reports focused on similar complaints in 
            Los Angeles, Riverside, San Bernardino, and Ventura Counties, 
            while in 2010, complaints were filed in Orange and Sacramento 
            Counties.  In 2012, complaints were reported once again in 
            Sacramento County.  In every instance, media reports of the 
            complaints indicated that the firms that were conducting the 
            voter registration drives or the individuals who were 
            registering voters as part of those drives were being paid on 
            a per-registration basis.







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            In all, according to the Secretary of State's Election Fraud 
            Investigation Unit (EFIU), between 1994 and 2010, the EFIU 
            opened 960 cases for fraudulent voter registration or 
            fraudulently altering party affiliation on voter registration 
            cards.  Out of these, 99 were referred to district attorneys 
            for prosecution, resulting in 64 convictions.  Since the EFIU 
            was created in 1994, it has opened more cases, and a larger 
            number of convictions have been obtained, for voter 
            registration fraud than for any other election crime.

           3)Other States  :  At least 11 states (Colorado, Florida, Georgia, 
            Iowa, Kentucky, Missouri, Nevada, Pennsylvania, South Dakota, 
            Washington, and Wisconsin) have laws prohibiting payments for 
            registering voters if those payments are based on the number 
            of registrations obtained.  Ohio similarly had a law that 
            prohibited payments for registering voters if those payments 
            were based on anything other than time worked.  Ohio's law 
            also prohibited payments for collecting signatures on election 
            petitions if the payments were based on anything other than 
            time worked.  The Ohio law was struck down by the Sixth 
            Circuit Court of Appeals in  Citizens for Tax Reform et al. v. 
            Deters et al.  (2008), 518 F.3d 375.  However, while the Court 
            struck down the entire Ohio law, including the provisions 
            regarding payments for registering voters, the Court's 
            decision focused on the portion of the law governing payments 
            for collecting signatures on petitions, and did not include 
            substantive discussion about the restrictions on payments for 
            voter registration.

           4)Labor Law Implications  :  This bill prohibits the payment of 
            individuals on a per-piece basis for voter registration.  
            Typically, in California, individuals who are paid to register 
            voters on a per-piece basis are independent contractors.  
            However, to the extent that this bill forces individuals who 
            are paid to register voters to be paid an hourly wage, this 
            bill could also result in these individuals being considered 
            employees under California law.  As such, the individual, 
            corporation, or group paying individuals to register voters 
            may be required to pay minimum wage, provide workers 
            compensation insurance and unemployment insurance for its 
            employees, and maintain a payroll system.

           5)Increased Costs  :  As noted in comment #4, individuals or 
            groups paying people to register voters may be required to 







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            provide certain benefits such as unemployment insurance and 
            workers compensation insurance.  This may result in higher 
            costs to those groups that pay individuals to register voters. 
             In addition, prohibiting payment of individuals on a 
            per-registration basis could increase costs because it may 
            become more difficult to measure the work product of employees 
            who are being paid to register voters.  Potential increased 
            costs may be partially offset if, by reducing the incentive to 
            submit fraudulent registrations, this legislation results in 
            individuals submitting fewer invalid registrations.

           6)Arguments in Opposition  :  The Peace and Freedom Party of 
            California opposes the bill unless it is amended to lower the 
            registration requirement for political bodies to become 
            qualified political parties, and for qualified political 
            parties to maintain their status as qualified political 
            parties.  In its letter of opposition, the Peace and Freedom 
            Party of California writes:

               The connection between this proposal and the payment 
               of voter registration workers is direct and immediate. 
                Small political parties in California are already 
               threatened by the consequences of Proposition 14 and 
               SB 6, which effectively eliminate the percentage of 
               vote test for remaining ballot-qualified.  Small 
               parties must now rely exclusively on increasing and 
               maintaining their voter registration numbers.  
               Eliminating payment per affidavit would make that much 
               more costly and, combined with the continuous removal 
               of voters from the active list of registered voters, 
               would make it very difficult.

               Even without AB 145, the ballot access requirement 
               needs to be changed in response to Proposition 14.  
               Banning payment per affidavit would make the need even 
               more acute.  This bill is therefore an appropriate 
               place for the change to be made.  We continue to 
               believe that the connection between payment per 
               affidavit and any potential for fraud in voter 
               registration campaigns is tenuous at best, and that 
               such payments should be allowed.  
                
           7)Previous Legislation  :  This bill is similar to SB 205 (Correa) 
            of 2011, which was vetoed by Governor Brown, and to SB 812 
            (Correa) of 2007, which was approved by this committee, but 







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            subsequently was amended and used for an unrelated purpose.  
            In his veto message to SB 205, Governor Brown wrote, "I 
            understand the author's desire to stop fraudulent voter 
            registration. But I don't believe this bill - which makes it a 
            crime to pay people for registering voters based on the number 
            of registrations they secure - will help.  Voting is at the 
            heart of our democracy. Efforts to register voters should be 
            encouraged, not criminalized."

          AB 2946 (Leno) of 2006, would have prohibited the payment of an 
            individual to register voters if that payment was on a 
            per-registration basis, among other provisions.  AB 2946 was 
            vetoed by Governor Schwarzenegger, though his veto message 
            focused on other parts of that bill, and did not address the 
            provisions of the bill that would have prohibited 
            per-registration payments for registering voters.

           8)Prior Version  :  The prior version of this bill, which was 
            approved by the Assembly, dealt with high-speed rail.  Those 
            provisions were removed from this bill in the Senate, and the 
            current contents were added.  As a result, this bill has been 
            re-referred to this committee pursuant to Assembly Rule 77.2.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Secretary of State Debra Bowen

           Opposition 
           
          Peace and Freedom Party of California (unless amended)

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