BILL ANALYSIS Ķ AB 651 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 651 (Hueso) As Amended August 29, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |50-24|(April 25, |SENATE: |23-16|(August 31, | | | |2011) | | |2011) | ----------------------------------------------------------------- Original Committee Reference: E. & R. SUMMARY : Requires professional petition firms, as defined, to register with the Secretary of State (SOS) and establishes penalties for non-compliance. Specifically, this bill : 1)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. 2)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. 3)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. 4)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. 5)Requires a member of a professional petition firm to review the law relating to obtaining petition signatures with each paid petition circulator before a paid petition circulator can obtain any signatures for the firm. 6)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 AB 651 Page 2 individual conducting the review, to verify that the circulator has received the review. The Senate amendments permit the SOS to seek penalties from a professional petition firm that fails to comply with the provisions of this bill, as follows: 1)A civil penalty not exceeding $10,000 from a firm that fails to register with the SOS; 2)A civil penalty not exceeding $5,000 from a firm that fails to submit training materials to the SOS; and, 3)A civil penalty not exceeding $5,000 from a firm that fails to submit a statement to the SOS verifying that each paid petition circulator has received a review of the law relating to obtaining petition signatures. AS PASSED BY THE ASSEMBLY , this bill did not specify penalties for a professional petition firm that failed to comply with the provisions of this bill, but otherwise was similar to the version approved by the Senate. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : According to the author, the initiative process has shifted from what was originally envisioned to be a grassroots effort to a system heavily influenced by special interests that spend large sums of money, using paid signature gatherers, to qualify a measure for the ballot. The author believes that this bill, by requiring state registration of petition gathering firms, posting this information on the SOS Web site, and requiring these firms to train their workers regarding relevant state law, will help ensure an open and transparent initiative process. In support of this bill, the SOS argues that it will ensure that professional petition firms appropriately educate their employees about how to comply with the law and will potentially decrease fraudulent or illegal practices in signature gathering. The Capitol Resource Family Impact, in opposition to this bill, argues that the requirement of firms to register with the SOS is AB 651 Page 3 an assault to California's direct initiative process. AB 6 (Saldaņa) of 2009, would have required professional petition firms to register with the SOS and pay a registration fee. AB 6 (Saldaņa) 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." Analysis Prepared by : Ethan Jones and Maria Garcia / E. & R. / (916) 319-2094 FN: 0002363