BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                  AB 651
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 651 (Hueso)
          As Amended  August 29, 2011
          Majority vote
           
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          |ASSEMBLY:  |50-24|(April 25,      |SENATE: |23-16|(August 31,    |
          |           |     |2011)           |        |     |2011)          |
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           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
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            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 








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          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

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