BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 651
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          Date of Hearing:   March 29, 2011

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     AB 651 (Hueso) - As Amended:  March 22, 2011
           
          SUBJECT  :   Initiatives: paid circulators.

           SUMMARY  :   Requires a person who is paid to gather signatures on 
          an initiative, referendum, or recall petition to wear a badge 
          that indicates the name of the person's employer.  Requires 
          professional petition firms, as defined, to register with the 
          Secretary of State (SOS).  Specifically,  this bill  :  

          1)Requires an individual who receives compensation to circulate 
            an initiative, referendum, or recall petition to identify him 
            or herself as a paid signature gatherer by wearing a clearly 
            visible badge on his or her chest stating "EMPLOYED BY" 
            followed by the name of the employer.

          2)Requires the print on the badge to be in at least 30-point 
            type, and makes violation of this provision an infraction 
            punishable by a fine of not more than $500.

          3)Defines the term, "professional petition firm," as an entity 
            that pays individuals to circulate petitions and gather 
            signatures for the purpose of qualifying an initiative for a 
            state or local election ballot.

          4)Requires a professional petition firm to register annually 
            with the SOS in order to pay individuals to circulate 
            petitions and collect signatures to qualify an initiative on a 
            state or local election ballot.

          5)Requires the registration of a professional petition firm to 
            include the full name, address, and partners, owners, or 
            officers of the firm, and to be accompanied by a registration 
            fee established by the SOS.

          6)Requires the SOS to use the fee revenue to maintain on its 
            Internet web site a directory of professional petition firms 
            and to defray any other associated costs with the requirements 
            of this bill.

          7)Requires a member of a professional petition firm to review 








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            the law relating to obtaining petition signatures with each 
            paid petition circulator before a paid petition circulator can 
            obtain any signatures for the firm.

          8)Requires a copy of the training materials provided to the 
            prospective petition firm employees to be submitted by the 
            firm to the SOS.  Requires the firm to submit a statement to 
            the SOS for each circulator, signed by the circulator and the 
            individual conducting the review, that the circulator has 
            received the review.











































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           EXISTING LAW  :

          1)Requires every state or local initiative petition to contain a 
            statement notifying voters of their right to inquire whether 
            the petition is being circulated by a paid signature gatherer 
            or volunteer.

          2)Establishes a process for proposing initiative measures 
            submitted to voters in California and sets forth 
            qualifications for persons who circulate initiative petitions.

          3)Provides that a person who is a voter or who is qualified to 
            register to vote in this state may circulate a state 
            initiative or referendum petition anywhere within the state.

           FISCAL EFFECT  :   Unknown.  State-mandated local program; 
          contains a crimes and infractions disclaimer.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:
             
                AB 651 requires professional petition firms to register 
               with the Secretary of State (SOS) and pay a registration 
               fee established by the SOS.  The bill also allows the SOS 
               to use the fees collected to maintain an online directory 
               of professional firms.  This bill also requires individuals 
               who receive a salary to circulate an initiative, 
               referendum, or recall petition to clearly identify him or 
               herself as a paid signature gatherer by wearing a clearly 
               visible badge on his or her chest stating "EMPLOYED BY" 
               followed by the name of the employer.
               
               The initiative process was designed to allow average 
               citizens to participate in direct democracy through 
               grassroots efforts. Ironically, the initiative process is 
               now heavily influenced by special interest groups. In fact, 
               the National Conference of State Legislators notes that the 
               cost of qualifying an initiative for the ballot in 
               California has risen to more than $1 million. The 
               consequence is that a system that was once designed as a 
               grassroots tool for average voters has now become a tool 
               for special interest groups to avoid the legislative 
               process.  California lacks a mechanism for providing 
               oversight of professional petition gathering firms.  We are 








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               currently unable to verify whether paid signature gatherers 
               are provided with information on the laws that regulate 
               petition gathering.  This bill will help ensure that paid 
               petition gatherers are informed of California law.  This 
               may result in fewer cases of election fraud by paid 
               petition gatherers.  According to the Secretary of State's 
               Office, there have been 32 convictions on petition fraud 
               since 1994.  According to a report issued by the Center for 
               Governmental Studies, there are no known cases in the state 
               of volunteer signature gatherers submitting fraudulent 
               signatures. 

               AB 651 will help ensure an open and transparent ballot 
               initiative process by making information about professional 
               petition firms available on the Secretary of State's 
               Website directory.  Many voters will find it valuable to 
               know whether a petition is being supported by grassroots 
               organizations or special interest groups that have paid to 
               qualify an initiative for the ballot.  AB 651 will help 
               educate the public and will not inherently hinder the 
               ability of organizations to qualify ballot initiatives.

           2)United States Supreme Court Jurisprudence  :  In 1988, the 
            United States Supreme Court ruled that a Colorado prohibition 
            against the use of paid circulators for initiative petitions 
            violated the First Amendment's guarantee of free speech. 
            Writing for a unanimous court, Justice Stevens noted that 
            "İt]he State's interest in protecting the integrity of the 
            initiative process does not justify the prohibition because 
            the State has failed to demonstrate that it is necessary to 
            burden appellees' ability to communicate their message in 
            order to meet its concerns."   Meyer v. Grant  (1988), 486 U.S. 
            414.

          In 1999, the United States Supreme Court examined a Colorado law 
            that provided a number of other restrictions on the signature 
            collection process for ballot initiatives.  In that case the 
            court ruled that there must be a compelling state interest to 
            justify any restrictions on initiative petition circulation.  
             Buckley v. American Constitutional Law Foundation  (1999), 525 
            U.S. 182.

          In  Buckley  , the court invalidated Colorado's requirement that 
            paid petition circulators wear a badge identifying themselves 
            and identifying that they are paid circulators.  The court 








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            stated that the requirement to wear badges inhibits 
            participation in the petitioning process.  "Because the badge 
            requirement compels personal name identification at the 
            precise moment when the circulator's interest in anonymity is 
            greatest, it does not qualify for inclusion among 'the more 
            limited İelection process] identification requirementİs]."  
            The Buckley court did not rule on the validity of the 
            requirement that a circulator wear a badge stating whether a 
            petition circulator was paid or a volunteer.

           3)Legislative Counsel Opinion  :  In an April 17, 2001, opinion, 
            Legislative Counsel opined that a statute to require an 
            individual circulating a petition to disclose (verbally or by 
            a sign, pin, badge, hat, or other indication) whether the 
            individual is paid to circulate the petition is valid under 
            the California and United States Constitutions.  In its 
            analysis, Legislative Counsel wrote "in our view the 
            disclosure of the paid or unpaid status of the petition 
            circulator at the time of circulation properly may be 
            characterized as the least drastic means to accomplish the 
            substantial state interest of enabling potential petition 
            signers to assess the sincerity of circulators."

           4)Arguments in Support  :  The SOS has taken a support if amended 
            position on this bill.  The first proposed amendment from the 
            SOS would replace the requirement that a paid circulator wear 
            a badge stating whom he or she is employed by with the 
            requirement that a paid circulator wear a badge with the 
            statement "Paid Signature Gatherer," instead.   In addition, 
            the SOS has requested an amendment to require both paid and 
            volunteer circulators wear a badge designating whether or not 
            they are being compensated. 

          In support of the goal of this bill, the SOS argues that 
            although current law gives a person the right to inquire as to 
            whether the person circulating the petition is paid or is a 
            volunteer, not all people are aware of this right, let alone 
            exercise it.  The SOS notes that the badge-wearing 
            requirement, with the proposed amendments, would promote 
            fairness and transparency.  Furthermore, the SOS states that 
            the provisions in this bill related to petition firms are 
            designed to ensure that they appropriately educate their 
            employees about how to comply with the law and will 
            potentially decrease fraudulent or illegal practices in 
            signature gathering.








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           5)Arguments in Opposition  :  The Capitol Resource Family Impact, 
            in opposition to this bill, argues that it will stigmatize and 
            neutralize groups as well as paid signature gatherers who seek 
            to place a referendum or initiative or have a recall on the 
            ballot.  They argue that the requirement of firms to register 
            with the SOS is an assault to California's direct initiative 
            process and that current law, which allows an individual 
            approached by a signature gatherer to ask whether they are 
            paid to collect signatures or not, is sufficient.

           6)Constitutional Issues and Suggested Amendments  :  According to 
            the Legislative Counsel opinion discussed above, the state 
            interest implicated by the provision in this bill that 
            requires the badge worn by signature gatherers to identify the 
            person or entity that is paying the circulator is that of 
            providing "a control or check on domination of the initiative 
            process by affluent special interest groups."  However, the 
            Legislative Counsel wrote "in our opinion, this state interest 
            alternatively could be accomplished by a less restrictive form 
            of regulation?thus, we conclude that disclosure of this 
            information?would be invalid."

          In light of concerns that these provisions may be deemed 
            unconstitutional, the author may wish to amend this bill to 
            require a person who receives compensation to circulate an 
            initiative, referendum, or recall petition to identify himself 
            or herself as a paid signature gatherer by wearing a clearly 
            visible badge on his or her chest stating their paid status 
            only, and remove the requirement that the badge identify the 
            employer.

          Alternatively, in light of AB 481 (Gordon), also scheduled to be 
            heard in this committee today, which similarly requires a paid 
            signature gatherer to wear a badge indicating that he or she 
            is paid, the author may wish to remove the badge requirement 
            in this bill altogether, leaving only the requirement that 
            professional petition firms register with SOS.

           7)Related Legislation  :  AB 481 (Gordon), also being heard in 
            this committee today, requires a person who is paid for 
            collecting petition signatures to wear a badge indicating that 
            he or she is a paid signature gatherer, and requires similar 
            information be disclosed on any state or local initiative, 
            referendum, or recall petition.








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          SB 168 (Corbett), pending in the Senate Public Safety Committee, 
            makes it a misdemeanor for a person to pay or to receive money 
            or any other thing of value based on the number of signatures 
            collected on a state or local initiative, referendum, or 
            recall petition.

            SB 448 (DeSaulnier), pending in the Senate Elections and 
            Constitutional Amendments Committee, requires every paid 
            signature gatherer to wear a badge that indicates that he or 
            she is paid and discloses whether he or she is registered to 
            vote and if so, the county in which he or she is registered to 
            vote.

           8)Previous Legislation  :  SB 1203 (DeSaulnier) of 2010, would 
            have required a person who is paid to gather signatures on an 
            initiative, referendum, or recall petition to wear a badge 
            that indicates that he or she is paid and discloses whether he 
            or she is registered to vote and if so, the county in which he 
            or she is registered to vote.  SB 1203 was approved by this 
            committee, but subsequently was gutted and amended for an 
            unrelated purpose.
           
           AB 6 (Saldana) of 2009, would have required professional 
            petition firms to register with the SOS and pay a registration 
            fee.  AB 6 was vetoed by Governor Schwarzenegger, who wrote in 
            his veto message, "The people of California often exercise 
            their important role in government oversight through the 
            initiative, referendum and recall process.  I cannot support a 
            measure that places an undue burden on reform-minded 
            Californians."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Secretary of State Debra Bowen (if amended)

           Opposition 
           
          Capitol Resource Family Impact
           
          Analysis Prepared by :    Maria Garcia / E. & R. / (916) 319-2094 










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