BILL ANALYSIS Ó AB 651 Page 1 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 AB 651 Page 2 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. AB 651 Page 3 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 AB 651 Page 4 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 AB 651 Page 5 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. AB 651 Page 6 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. AB 651 Page 7 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 AB 651 Page 8