BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 397 (Yee)
          
          Hearing Date: 5/16/2011         Amended: 5/11/2011
          Consultant: Maureen Ortiz       Policy Vote: E&CA 3-2
          _________________________________________________________________
          ____
          BILL SUMMARY:   SB 397 authorizes counties to develop and use an 
          electronic voter registration system that will be operable only 
          until a statewide system is implemented upon the completion of 
          VoteCal.  The bill requires the Secretary of State (SOS) to 
          obtain an electronic copy of an affiant's signature from the 
          Department of Motor Vehicles (DMV), and forward that signature 
          to the applicable county for verification.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          SOS                                             $75             
          --unknown, annual ongoing-     General

          DMV                                         ----------unknown, 
          potentially $500--------         Special*     

          County IT costs                   ----potentially $500, offset 
          later from 
                                                         reduction in 
          manual voter registration----           Local

          *Motor Vehicle Account
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Costs to implement any electronic voter registration system will 
          be borne by counties which opt to establish a system pursuant to 
          this bill, and will not be reimbursable by the state. Current 
          estimates are approximately $500,000 if all 58 counties choose 
          to establish an online voter registration program.  Once a 
          system is implemented, costs for registering voters should 








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          greatly diminish, as will state costs for printing paper 
          affidavits of registration.  The Secretary of State expresses 
          concerns over time and funding to modify or restructure its 
          information technology system in order to be able to securely 
          receive, store, and provide the signatures to county election 
          elections officials by January 1, 2012. SOS anticipates first 
          year costs of $75,000 and unknown annual ongoing.  The 
          Department of Motor Vehicles has not completed its fiscal 
          estimate of SB 397 as of this writing however, preliminary costs 
          are in excess of $500,000.

          A voter may use the electronic registration system to submit an 
          affidavit of voter registration on the county elections official 
          Internet Web site, providing the person is qualified to register 
          to vote, has a valid California driver's license or state 
          identification card, and resides in that county.  Other 
          provisions include the following:

          a)  The affidavit is received on or before the 15th day prior to 
          an election to be held in the precinct of the person submitting 
          the affidavit,
          b)  The affiant affirmatively attests to the trust of the 
          information being provided,
          c)  The affiant affirmatively assents to the use of his or her 
          signature from a driver's license of state identification card.
          d)  The county elections official shall notify the Secretary of 
          State of each electronic affidavit received, including all 
          information necessary for the SOS to obtain the signature from 
          the DMV.

          Upon receiving the notice from the county, the SOS will obtain 
          an electronic copy of the affiant's signature directly from the 
          DMV, and shall then provide an electronic copy of the affiant's 
          signature to the applicable county.  The county, upon receipt of 
          the data from the Secretary of State, will then immediately 
          verify the following:  1) that the affiant has a California 
          driver's license or state ID card which matches the number 
          provided by the affiant, and 2) that the date of birth provided 
          by the affiant matches that which is on file with the DMV.

          SB 397 requires the Department of Motor Vehicles to notify the 
          Secretary of State of each person who has a valid California 
          driver's license or state identification card, at regular 








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          intervals.  However, the bill does not define the frequency of 
          those intervals.  If the information is sent at intervals 
          greater than 24 hours, the SOS has concerns about possible voter 
          disenfranchisement.

          Additionally, SB 397 requires the county elections official to 
          employ security measures to ensure the accuracy and integrity of 
          voter registration affidavits that are submitted electronically. 
           

          Any county electronic voter registration systems that are 
          developed and implemented will become invalid when the Secretary 
          of State certifies the completion of a statewide voter 
          registration database that complies with the requirements of the 
          federal Help American Vote Act of 2002 (HAVA).  The SOS is 
          currently in the bidding process of contracting with a vendor 
          and expects the statewide database, known as VoteCal, to be 
          fully operational in 2015 and encompass online voter 
          registration capabilities.

           VoteCal and Online Voter Registration  .  Among other things, HAVA 
          required every state to implement a single, uniform, official, 
          centralized, interactive computerized statewide voter 
          registration list defined, maintained, and administered at the 
          state level.  This statewide voter registration list will serve 
          as the official list of eligible voters for any federal election 
          held within the state.  HAVA provided funds to states to develop 
          voter registration lists and required each state to develop such 
          a list by January 1, 2004.  HAVA also provided a procedure, 
          however, for states to request a waiver that extended the 
          deadline to January 1, 2006.  The SOS applied for, and received, 
          such a waiver.

          At the time HAVA was approved, California was already using a 
          statewide voter registration system known as Calvoter that 
          achieved some of the goals of the voter registration list 
          required by HAVA.  However, Calvoter did not satisfy many of the 
          requirements in that law, including requirements that the 
          database be fully interactive and have the capability of storing 
          a complete voter registration history for every voter.  

          In January 2005, the SOS sought guidance from the United States 
          Department of Justice (Justice Department) regarding a plan for 








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          compliance with HAVA's statewide voter registration list 
          requirements.  Under the initial plan, the state would achieve 
          interim short-term compliance with HAVA by January 1, 2006, 
          through upgrades to Calvoter, with a plan for long-term 
          compliance through the development and implementation of a new 
          voter registration system, to be known as VoteCal.  The Justice 
          Department, however, expressed concerns that this plan did not 
          comply with the requirements of HAVA.  Subsequent discussions 
          between the SOS and the Justice Department led to the adoption 
          of a memorandum of agreement (MOA) between the two parties.  In 
          that MOA, the SOS committed to further upgrades to the Calvoter 
          system to achieve short-term interim compliance with the 
          requirements of HAVA, and to complete development and 
          implementation of a longer-term solution for replacing the 
          Calvoter system with a new permanent statewide voter 
          registration system.  In exchange, the Justice Department agreed 
          to refrain from initiating litigation in federal court against 
          the state to enforce the voter registration list requirements of 
          HAVA.

          Since that MOA was signed on November 2, 2005, the state has 
          continued its efforts to develop the VoteCal system. After 
          completing a planning process that is required by state law for 
          all major technology projects, the procurement process began, 
          and a final deadline for bids to be submitted for the VoteCal 
          project was set for January 29, 2009.  Of all the vendors who 
          submitted bids for the VoteCal project, only one - Catalyst 
          Consulting - met all the requirements of the request for 
          proposal (RFP).  Upon obtaining approvals for expenditure 
          authority for the VoteCal costs, a contract was executed with 
          Catalyst Consulting on September 8, 2009, and work on the 
          VoteCal project commenced.

          However, on April 19, 2010, the SOS discovered that the vendor 
          hired to develop and deploy the VoteCal system had not obtained 
          a performance bond for the project, even though the RFP required 
          the vendor to obtain such a bond within 21 days of the contract 
          being executed.  Additionally, the SOS and the independent 
          project oversight consultant that was hired to oversee the 
          VoteCal project both expressed concerns about the ability of 
          Catalyst Consulting to meet the agreed-upon schedule for VoteCal 
          to be deployed.  On May 21, 2010, the SOS and Catalyst 
          Consulting agreed to terminate the contract for the development 








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          of VoteCal.

          Since terminating the contract with Catalyst Consulting in May, 
          the SOS, in coordination with the Department of General Services 
          and the California Technology Agency, has begun the process 
          again of awarding a contract for the development of VoteCal.  A 
          new RFP was issued on October 29, 2010 but a contract has yet to 
          be awarded.

          The delay in the implementation of a statewide voter 
          registration database that complies with HAVA has notable 
          impacts on election administration in the state.  Among other 
          programs that have been signed into law and absent new 
          legislation to provide otherwise, online voter registration will 
          not go into effect until VoteCal is in place.