BILL ANALYSIS Ó SB 35 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 35 (Padilla) - As Amended: August 6, 2012 Policy Committee: Elections and RedistrictingVote: 5-1 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill significantly expands the list of state agencies providing voter registration services, and provides the Secretary of State (SOS) and county election officials with corresponding responsibilities. Specifically, this bill: 1)Requires that the following agencies and government bodies provide a citizen an opportunity to register to vote, and assistance in completing a voter registration card, "with each application for service or assistance": Department of Aging, Health Benefit Exchange, Department of Veterans Affairs, Employment Development Department, Franchise Tax Board, Office of AIDS, State Board of Equalization, State Emergency Food Assistance Program, State Personnel Board, high schools, community colleges, California State University campuses, and other small offices that administer benefits through a limited number of state programs. Agencies and government bodies with these responsibilities are known as "voter registration agencies" (VRAs). 2)Requires VRAs to train relevant employees on providing voter registration services, using training materials provided by SOS. 3)Requires VRAs that provide services online to provide users with an opportunity to register to vote online. 4)Requires the SOS to notify each county elections office of all VRA locations within that county. 5)Requires the SOS to communicate best practices for providing SB 35 Page 2 voter registration services to VRAs; to assist VRAs in providing voter registration services; and to follow-up with VRAs that fail to provide timely reports on the results of their voter registration services. 6)Allows the SOS to conduct an audit of a VRA's compliance with SB 35 or a county elections office's compliance with SB 35, if either fails to provide timely reports on the results of its voter registration services. 7)Requires county elections offices to provide voter registration cards to VRAs as needed; maintain a record of the number of voter registration cards provided to and received from each VRA; and assist a VRA, upon request, in conducting a training program for VRA employees. County election offices are responsible for coordinating with the SOS and their local VRAs to ensure the requirements of this bill are met. 8)Requires county elections offices to report monthly to the SOS the number of voter registration cards provided to and received from each VRA. Requires the SOS to publish this information on its website. FISCAL EFFECT This bill creates minor costs for the SOS and county elections offices, and major costs - in the tens of millions for state agencies newly designated as VRAs. The costs incurred by state agencies vary, depending on how many Californians they serve and the number of formats in which they serve them. For example, agencies that serve Californians in person, by mail, by phone, and online must provide voter registration services in all of those formats, driving up costs. Over time, as voter registration services merge into the other services provided by each newly designated VRA, costs will likely decline. Moreover, agencies are likely overestimating the cost of providing online voter registration services, because online voter registration (created in 2011 by SB 397) is new to California. Costs should decline as online voter registration becomes more widely used and agencies develop a familiarity with it. SB 35's total costs likely range from $60-75 million annually in initial years, dropping substantially in subsequent years. Costs SB 35 Page 3 are due to increased staffing needs, postage, and IT development. 1)The SOS estimates General Fund costs of up to $100,000 for assisting VRAs with voter registration services, and for following up with VRAs and county election officials not complying with the provisions of SB 35. 2)County elections offices should see minor and absorbable costs, as many already have automated systems that can expand to comport with the requirements of SB 35. 3)The Employment Development Department (EDD), which provides services in person, by phone, by mail, and online, estimates annual General Fund costs of $18.6 million. Those costs will fund staffing to provide voter registration services and postage to mail voter registration materials to customers served via phone or mail. EDD will also likely incur first-year costs in the low millions of dollars to upgrade IT systems. 4)CSU states that if SB 35 only requires its campuses to provide students with an opportunity to register to vote when enrolling or accessing a variety of frequently used online portals, it is already in compliance with SB 35. If, however, a more expansive definition of "service or assistance" is used, CSU will face new costs. Assuming a half-time position at each of CSU's 23 campuses creates a total cost of $800,000. 5)The community college system estimates that each of its 112 campuses will require a half-time position to handle new voter registration responsibilities, for a total General Fund (Proposition 98) reimbursable cost of $3.9 million. 6)High schools will likely see fewer new responsibilities than community college campuses because they have fewer voting-age students. Assuming a one-third position at each of California's 1,290 public high schools, high schools will see annual General Fund (Proposition 98) costs of $36.7 million. Assuming a one-quarter position at each of the 82 high school district offices adds an additional $1.8 million annually. 7)The Department of Aging estimates that each of the 33 Area Agencies on Aging would require a one-quarter position to handle new voter registration responsibilities. Staffing, SB 35 Page 4 postage, and IT costs bring the total annual General Fund cost for CDA to $5.6 million. 8)The Board of Equalization (BOE) was designated a VRA shortly after the passage of the National Voter Registration Act of 1993 (NVRA) and thus faces expanded duties under SB 35 instead of entirely new ones. BOE estimates costs of up to $90,000 in 2012-13, $51,000 in 2013-14, and $30,000 every year thereafter. These costs are attributable to training staff and adapting BOE's IT infrastructure to satisfy the online voter registration provisions of the bill. 9)The Franchise Tax Board was also designated a VRA after the passage of the NVRA. It estimates first-year costs of $500,000 to $1.2 million, and costs of $50,000 to $350,000 every year thereafter. 10)A small number of additional agencies, servicing comparatively fewer Californians, are also affected by SB 35. Annual costs incurred due to SB 35 by these additional agencies would likely be in the low millions of dollars. COMMENTS 1)Background and Purpose : According to the author: "Congress enacted the National Voter Registration Act of 1993 ("NVRA" or the "Motor Voter Act"), to enhance voting opportunities for every American?. A lesser known provision of the Motor Voter Act requires states to provide individuals the opportunity to register to vote or to change their voter registration data when applying for, or receiving, services at state public assistance offices as designated by the state. These designated agencies are known as Voter Registration Agencies." "Following the passage of the NVRA, Governor Pete Wilson designated the minimum number of agencies, two, as voter registration agencies as required by the law. Since 1994, no additional agencies have been designated Voter Registration Agencies despite California's discretionary authority to do so. Thus, multiple state agencies in California, some of which did not even exist in 1994 and that together process millions of applications for public benefits each year, have yet to be designated voter registration agencies." SB 35 Page 5 "The need for stronger compliance with Ýthe NVRA] is demonstrated by the number of unregistered voters in California, especially among low-income citizens. Since the implementation of NVRA there has been an 87% decline in the amount of registration applications collected by California Voter Registration Agencies." In California, the following state and local offices are already designated as VRAs: Department of Motor Vehicles, a number of public assistance agencies (including County Human Service Agencies), State-funded agencies primarily serving persons with disabilities, Armed Forces Recruitment offices, Franchise Tax Board, and Board of Equalization. 2)Amendments . The author's most recent amendments to SB 35 remove a number of provisions that would have made the bill difficult to implement. For example, a requirement that the SOS audit a VRA if a VRA fails to timely submit a required report has been replaced by an option to do so. Another amendment eliminated a requirement that non-profits contracting with a VRA provide voter registration services. 3)Definition of Service or Assistance . SB 35 does not define what kind of service or assistance would require a VRA to provide a citizen with a voter registration card. For example, it is not clear if a community college student seeing a faculty member for academic advisement would meet the definition of seeking a service, or if a CSU student going to the Student Health Center for a medical appointment would meet that definition. Moreover, in a single visit to a state office a citizen may seek a service or assistance a number of times. Following the letter of the law would require VRAs to provide citizens with several opportunities to register to vote in a single day. 4)State Mandates. The 2011-12 and 2012-13 Budget Acts suspended various state mandates, including all six existing election-related mandates. In light of this action and continuing budget challenges, the committee may wish to consider whether it is desirable to create new election mandates. Analysis Prepared by : Jonathan Stein / APPR. / (916) 319-2081 SB 35 Page 6