BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 35
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          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 








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            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 








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          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, 








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            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."








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            "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 








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