BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 857
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          Date of Hearing:   April 23, 2013

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     AB 857 (Fong) - As Amended:  April 15, 2013
           
          SUBJECT  :   Initiatives: petition circulators.

           SUMMARY  :   Makes numerous significant changes to provisions of  
          state law governing initiatives and referenda.  Specifically,  
           this bill  :  

          1)Requires at least 20 percent of the signatures collected to  
            qualify a proposed state initiative measure for the ballot to  
            be collected by individuals who did not receive money or other  
            valuable consideration exclusively or primarily for the  
            specific purpose of soliciting signatures of electors on the  
            petition, as specified ("20 percent requirement").

             a)   Provides that signatures on a petition qualify toward  
               meeting the 20 percent requirement if they are collected by  
               a person who is an employee or member of a non-profit  
               organization, other than an organization in the business of  
               soliciting signatures on initiative petitions, who receives  
               money or other valuable consideration from the organization  
               and as part of that employment or membership solicits  
               signatures for the qualification of an initiative measure,  
               unless a primary purpose of that employment or membership  
               is to solicit signatures on an initiative petition.   
               Defines "member" for the purposes of this provision.  

             b)   Provides that signatures solicited by registered voters  
               or employees of a political party who receive money or  
               other valuable consideration from the political party for  
               soliciting signatures on an initiative petition do not  
               qualify toward meeting the 20 percent requirement.

             c)   Provides that signatures solicited through direct mail  
               do not count towards the 20 percent requirement unless the  
               person soliciting the signatures through direct mail, and  
               every other person who organizes, pays, or arranges for the  
               direct mail, is eligible to solicit signatures that qualify  
               toward meeting the 20 percent requirement, as described  
               above.  Provides that this provision shall not preclude an  
               organization that has a primary purpose other than  







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               soliciting signatures on initiative petitions from  
               soliciting signatures from its members through direct mail  
               and relying on those signatures for the purposes of  
               satisfying the 20 percent requirement.

             d)   Provides that nothing in this bill shall be construed to  
               preclude signatures that are solicited by a person who  
               receives nominal, non-monetary benefits, including food,  
               transportation, or lodging, from qualifying toward meeting  
               the 20 percent requirement.

          2)Requires a petition for a proposed state initiative measure  
            that is circulated by a person such that it will qualify  
            toward meeting the 20 percent requirement to be printed on  
            white paper in a contrasting color ink.  Requires other  
            petitions for such a measure to be printed on yellow paper in  
            a contrasting color ink.  

          3)Requires a petition for a proposed state initiative measure  
            that is circulated by a person such that it will not qualify  
            toward meeting the 20 percent requirement to include all of  
            the following:

             a)   Immediately prior to the portion of the petition for  
               voters' signatures, the following language printed in  
               18-point boldface type:

             "WARNING TO THE PUBLIC: THIS PETITION IS BEING CIRCULATED BY  
               A PERSON PAID TO OBTAIN YOUR SIGNATURE.  READ THE CONTENTS  
               OF THIS PETITION BEFORE SIGNING."

             b)   Immediately following the warning identified above, a  
               disclosure statement, in 14-point boldface type, that  
               includes the following language:

             "The political committee paying for this petition to be  
               circulated is (insert full name of committee).

             The following donors have contributed $50,000 or more to the  
               (insert full name of committee) within six months of the  
               printing of this petition: (insert name of each of the top  
               three donors who have contributed $50,000 or more and, if  
               an individual, his or her occupation and the identity of  
               his or her employer)."








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             c)   Requires, if the information for the disclosure  
               statement changes, that the statement be updated within 14  
               days.

          4)Requires a person who solicits signatures on a petition that  
            qualify toward meeting the 20 percent requirement to sign an  
            affidavit that declares all of the following:

             a)   That the person did not receive money or other valuable  
               consideration for the specific purpose of soliciting  
               signatures of electors pursuant to the requirements of this  
               bill;

             b)   That to the best of his or her knowledge, the signatures  
               on the petition sections circulated by him or her should be  
               counted towards the 20 percent requirement;

             c)   The person's current place of permanent residence; and,

             d)   If the person is not a resident of the state, a  
               statement that he or she consents to the jurisdiction of  
               the state and service of process for any legal action for  
               the purposes of an investigation or prosecution by any  
               state or local agency regarding the validity of the  
               signatures submitted by that person.

          5)Makes corresponding changes to the process for elections  
            officials to verify signatures submitted on a state initiative  
            petition.

          6)Requires each section of a petition for a proposed state  
            initiative measure to bear a unique identifying number.

          7)Repeals a requirement that a person must be a voter or  
            qualified to register to vote in the state in order to  
            circulate an initiative or referendum petition.

          8)Prohibits a person from paying another person to solicit  
            signatures on a state initiative or referendum petition, and  
            prohibits a person from being paid to solicit signatures on a  
            state initiative or referendum petition, unless the person  
            soliciting the signatures registers with the Secretary of  
            State (SOS) and completes a training program.  Provides that a  
            person who is an employee or member of a nonprofit  
            organization, other than an organization in the business of  







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            soliciting signatures on initiative or referendum petitions,  
            who receives money or other valuable consideration from the  
            organization and as part of that employment or membership  
            solicits signatures for the qualification of an initiative or  
            referendum measure, shall not be required to register or  
            complete the training program, unless a primary purpose of  
            that employment or membership is to solicit signatures on an  
            initiative or referendum petition.  

             a)   Requires a person who is required to register with the  
               SOS to file an application that includes all of the  
               following:

               i)     The applicant's full name and any assumed name;

               ii)    The applicant's residential street address;

               iii)   An example of the applicant's signature;

               iv)    A list of the initiative or referendum petitions for  
                 which the applicant will solicit signatures;

               v)     If the applicant has been convicted of a criminal  
                 offense involving fraud, forgery, identification theft,  
                 or a violation of the Elections Code, information  
                 relating to the circumstances of the conviction, as  
                 required by the SOS;

               vi)    A statement signed by the applicant that he or she  
                 has read and understands the applicable laws pertaining  
                 to the soliciting of signatures for an initiative or  
                 referendum measure;

               vii)   Proof that the applicant has completed the required  
                 training; 

               viii)  A photograph of the applicant, as specified; and,

               ix)    If the applicant is not a resident of the state, a  
                 statement that he or she consents to the jurisdiction of  
                 the state and service of process for any legal action for  
                 the purposes of an investigation or prosecution by any  
                 state or local agency regarding the validity of the  
                 signatures submitted by that person.








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             b)   Requires the application to be signed under penalty of  
               perjury.

             c)   Provides that if an applicant complies with the  
               registration requirements specified above, the SOS shall  
               register the applicant and assign the applicant a  
               registration number within five days.

             d)   Requires the SOS to deny the registration of a person  
               who has been convicted of a criminal offense involving  
               fraud, forgery, or identification theft in any state, or a  
               violation of the Elections Code, during the five-year  
               period prior to the date of the application.

             e)   Requires a person registered pursuant to these  
               provisions to wear a badge provided by the proponent of the  
               measure that evidences a person's registration when the  
               person is soliciting signatures on the petition.  Requires  
               the badge to contain the person's photograph and  
               registration number, and requires the SOS to prescribe the  
               form of the badge by regulation.

             f)   Provides that a person's registration as a petition  
               circulator is effective for two years.  Requires the  
               registrant to amend his or her application to reflect any  
               changes within 10 days, and prior to circulating any  
               petition that was not previously included on the  
               registration as a petition that the person would be  
               circulating.

             g)   Requires the SOS to revoke the registration of a person  
               who, in the course of circulating an initiative or  
               referendum petition, engages in fraud, misrepresentation,  
               or other specified conduct prohibited by the Elections  
               Code.

             h)   Requires the SOS to establish a training program that  
               includes, but is not limited to, instruction to circulators  
               regarding how to avoid fraud, misrepresentation, and other  
               misconduct during the circulation of petitions and  
               instruction on compliance with, and the consequences for  
               violations of, the requirements of these provisions.

          9)Provides that if a person was not registered as a petition  
            circulator pursuant to this bill at the time that person  







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            solicited signatures on a petition, but was required to be  
            registered at that time for the purposes of that petition, the  
            signatures presented on the petitions or sections of the  
            petition circulated by that person shall not count toward  
            qualifying that measure for the ballot.

          10)Requires the proponent of an initiative or referendum measure  
            who pays a circulator who is required to be registered  
            pursuant to this bill to keep detailed accounts, as specified.  
             Provides that "accounts," for these purposes, means all of  
            the following:

             a)   Contracts between the proponent and petition  
               circulators;

             b)   Employment manuals and training materials provided to  
               petition circulators;

             c)   Payroll records for each petition circulator showing  
               hours worked, number of signatures collected, and amounts  
               paid;

             d)    Records identifying the amount and purpose of payments  
               made by the proponent to any contractor or subcontractor  
               soliciting signatures; and,

             e)   Copies of petition sections circulated by registered  
               circulators.

          11)Requires the SOS to review the accounts of initiative and  
            referendum proponents, as specified, according to a regular  
            schedule.

          12)Provides that if the proponent of a measure does not produce  
            accounts upon demand of the SOS, there is a rebuttable  
            presumption that the signatures were gathered in violation of  
            the law and cannot be used to qualify the measure for the  
            ballot.  Prohibits the proponent from soliciting additional  
            signatures on the petition until the proponent makes the  
            accounts available to the SOS for inspection.

          13)Provides that a state initiative or referendum petition  
            section is invalid if the signatures are solicited and  
            submitted by a person who engages in fraud, misrepresentation,  
            or other illegal conduct concerning the circulation of the  







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            petition, as specified.  Provides that the SOS or any elector  
            may enforce this provision by a civil action in which the  
            plaintiff has the burden of showing a violation by clear and  
            convincing evidence. 

          14)Provides that the provisions of this bill shall take effect  
            on January 1, 2014, and shall apply to any initiative or  
            referendum petition for which the Attorney General issued a  
            circulating title and summary on or after October 1, 2013.

          15)Makes various findings and declarations about the initiative  
            process and the influence that special interests and paid  
            circulators have on that process.

          16)Makes corresponding changes.

           EXISTING LAW  :

          1)Allows electors to propose statutes and amendments to the  
            Constitution and to adopt or reject them through the  
            initiative process.

          2)Requires that a state or local initiative petition contain a  
            notice alerting voters that the petition may be circulated by  
            a paid signature gatherer or a volunteer, and that voters have  
            the right to ask if a petition circulator is a paid gatherer  
            or volunteer.

          3)Establishes penalties for fraudulent activity related to  
            signature gathering.

           FISCAL EFFECT  :  Unknown.  State-mandated local program; contains  
          reimbursement direction.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               In 1911, as part of the Progressive movement,  
               California voters amended the state Constitution to  
               reserve for themselves the power of the initiative,  
               because powerful, out-of-state interests exercised a  
               corrupting influence over state politics.

               Unfortunately, over the last 30 years, the original  







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               intent of the initiative process has been undermined,  
               and the initiative has become one of the favorite  
               tools of well-financed special interest groups.   
               Voters recognize that the ability of an initiative's  
               proponents to gather the necessary signatures to  
               qualify a measure for the ballot is not a function of  
               whether there is broad-based community support for a  
               proposed measure, as originally intended, but rather  
               depends on the amount of money that a proponent is  
               willing to spend to place the proposal on the ballot.

               When the initiative process was first created, it was  
               envisioned that petitions would be circulated by  
               volunteers and grassroots organizations that supported  
               the proposed law.  But in the late 1970s, the  
               signature gathering process became a professional  
               undertaking, and a number of professional signature  
               gathering firms were created.  Since the 1990s, most  
               initiative measures have relied primarily on paid  
               signature gatherers to qualify for the ballot, and no  
               state initiative measure has qualified for the ballot  
               using only volunteer signature gatherers since 1990.  

               Too often, those paid signature gatherers have used  
               fraud and deceit to gather the signatures needed to  
               qualify measures for the ballot, or have forged  
               signatures on petitions.  Since 1994, there have been  
               dozens of convictions for fraudulent signature  
               gathering, and most (if not all) of those convictions  
               have been of paid signature gatherers.  In fact, a  
               2008 study by the Center for Governmental Studies  
               found no known cases in California of volunteer  
               signature gatherers submitting fraudulent signatures.

               At the same time, proposed initiative measures with  
               true grassroots support have continued to have success  
               in collecting large numbers of signatures using  
               volunteer signature gatherers.  In 2008, proponents of  
               Proposition 2 gathered half a million signatures using  
               volunteer signature gatherers.

               AB 857 preserves the original intent of the initiative  
               process by ensuring that proposed initiative measures  
               have broad-based community support in order to qualify  
               to appear on the ballot.  To achieve that goal, AB 857  







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               requires at least 20 percent of the signatures  
               gathered to qualify a state initiative for the ballot  
               to be collected by grassroots signature gatherers.   
               Additionally, AB 857 helps ensure that measures do not  
               qualify for the ballot due to fraudulent activity by  
               signature gatherers by prohibiting fraudulently  
               collected signatures from being used to qualify a  
               measure for the ballot.  Finally, AB 857 helps protect  
               the integrity of the initiative process by requiring  
               paid signature gatherers to undergo training and to  
               register with the Secretary of State, and by  
               prohibiting people convicted of fraud or other  
               elections crimes from being paid to collect signatures  
               on initiative petitions for a period of five years.

           2)20 Percent Signature Requirement  :  Under the provisions of  
            this bill, in order for a state initiative measure to qualify  
            for the ballot, at least 20 percent of the signatures gathered  
            on the petition for that measure would have to be collected on  
            petition sections that were circulated by a person who does  
            not receive money or other valuable consideration exclusively  
            or primarily for the specific purpose of soliciting signatures  
            of electors on the petition, as specified.  This "20 percent  
            requirement" does not apply to state referendum or recall  
            petitions, nor does it apply to local initiatives, referenda,  
            or recalls.

          While signatures collected by volunteers will count toward  
            meeting this 20 percent requirement, the language of the bill  
            does not require the signatures to be gathered by volunteers  
            in order to qualify to meet the 20 percent requirement.   
            Instead, in certain circumstances, signatures collected by  
            individuals who were paid for their time could count toward  
            meeting the 20 percent requirement provided that the person  
            wasn't paid exclusively or primarily for the specific purpose  
            of soliciting signatures.  This bill provides that signatures  
            will count toward the 20 percent requirement if they are  
            collected by employees and members of nonprofit organizations  
            who receive compensation from that organization and solicit  
            signatures as a part of their employment or membership, as  
            long as the nonprofit organization is not primarily focused on  
            soliciting signatures on petitions.  In the case of signatures  
            solicited by direct mail, those signatures would apply toward  
            the 20 percent requirement if the person soliciting the  
            signatures through direct mail and all persons that organize,  







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            pay for, and arrange the direct mail are persons who were  
            eligible to solicit signatures that counted toward the 20  
            percent requirement.  Additionally, signatures solicited by  
            direct mail would count toward the 20 percent requirement if  
            they are collected by an organization that is soliciting  
            signatures through direct mail from its members, as long as  
            the organization has a primary purpose other than collecting  
            signatures.

          In 1988, the United States Supreme Court ruled that a Colorado  
            prohibition against the use of paid circulators for initiative  
            petitions violated the First Amendment's guarantee of free  
            speech. Writing for a unanimous court, Justice Stevens noted  
            that "[t]he State's interest in protecting the integrity of  
            the initiative process does not justify the prohibition  
            because the State has failed to demonstrate that it is  
            necessary to burden appellees' ability to communicate their  
            message in order to meet its concerns."   Meyer v. Grant   
            (1988), 486 U.S. 414.  It could be argued that the 20 percent  
            requirement imposed by this bill could be susceptible to a  
            court challenge in light of the United States Supreme Court's  
            ruling in  Meyer  .  However, the 20 percent requirement in this  
            bill is distinguishable from the law struck down in  Meyer  in a  
            number of different ways, and thus may be more likely to  
            withstand constitutional scrutiny.

          Unlike the law considered by the court in  Meyer  , the 20 percent  
            requirement in this bill does not apply to all signatures  
            gathered to qualify a measure for the ballot, but only a  
            portion of the signatures.  Furthermore, as discussed above,  
            the signatures that are gathered to meet that 20 percent  
            requirement do not necessarily have to be collected by  
            individuals who are unpaid if they are gathered by members and  
            employees of a nonprofit organization in furtherance of that  
            nonprofit's objectives.  These provisions are designed to help  
            ensure that initiative measures that qualify for the ballot  
            have sufficient grassroots support, while still providing  
            significant flexibility for proponents of initiative measures  
            to gather the necessary number of signatures.

          Additionally, there is reason to believe that changes in the  
            initiative process since the  Meyer  decision may undercut a key  
                  rationale used by the court in striking down Colorado's law.  
            The  Meyer  court held that Colorado's interest in making sure  
            that an initiative had sufficient grassroots support to be  







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            placed on the ballot did not justify the prohibition on the  
            use of paid signature gatherers because it found that interest  
            was "adequately protected by the requirement that no  
            initiative proposal may be placed upon the ballot unless the  
            required number of signatures has been obtained."  But this  
            bill questions whether the signature requirement, in and of  
            itself, still serves as a sufficient barometer of grassroots  
            support for a measure, finding that "[w]hether an initiative  
            measure qualifies for the ballot no longer depends upon how  
            much the state's voters truly support the proposed law but,  
            rather, depends on how much money a proponent is willing to  
            spend to place the proposal on the ballot."  This bill further  
            finds that "the presence of an initiative on the ballot is no  
            longer viewed as an expression of a minimum amount of public  
            support but, rather, the willingness of a special interest to  
            pay a sufficient number of petition circulators to use  
            whatever means necessary to qualify the initiative measure for  
            the ballot."  Research in 2008 by the now-closed Center for  
            Governmental Studies (CGS) supports these findings, suggesting  
            that over time, the signature requirement has morphed from  
            being a measure of the level of grassroots support for an  
            initiative to instead being a measure of the amount of money  
            that proponents are willing to spend to qualify a measure for  
            the ballot.  In its 2008 report, "Democracy by Initiative:  
            Shaping California's Fourth Branch of Government, Second  
            Edition," CGS wrote:

               For the last few decades, the most important factor  
               determining whether an initiative will qualify for the  
               ballot has been the amount of money spent on petition  
               circulation. In the late 1970s, a gap began to grow  
               between the amount of money spent on successful and  
               unsuccessful attempts to qualify initiatives. Prior to  
               the upsurge in ballot qualification costs that began  
               with the 1978 general election, expenditures on  
               petition circulation for both successful and  
               unsuccessful efforts were reasonably close.

               While expenditures on unballoted initiatives have  
               barely risen, the amount of money spent on successful  
               qualification efforts has increased exponentially. In  
               the early 1990s, ballot qualification could reasonably  
               be assured at a cost of $500,000 and guaranteed at a  
               price tag of $1 million or more. Some initiatives had  
               managed to qualify spending less, and, throughout the  







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               entire history of California's initiative process,  
               only two initiative proposals that spent as much as  
               $500,000 on qualification efforts failed to make it to  
               the ballot.  Proponents of 10 of the 50 balloted  
               initiatives from 1984 through 1990 spent under  
               $500,000 for qualification, while 24 campaigns spent  
               over $1 million. By contrast, the vast majority of the  
               39 campaigns for balloted initiatives between 2000 and  
               2006 spent more than $1 million on qualification, and  
               16 spent over $2 million. The fact that ballot access  
               can be so reliably measured in terms of dollars rather  
               than degree of public concern clearly runs counter to  
               the original intent of the initiative process?. Money,  
               rather than breadth or intensity of popular support,  
               has become the primary threshold for determining  
               ballot qualification.

           3)Registration and Training of Paid Signature Gatherers & Badge  
            Requirement  :  This bill requires individuals who receive  
            compensation for the specific purpose of soliciting signatures  
            on an initiative or referendum petition to register with the  
            SOS and complete a training program designed by the SOS.  The  
            training program would focus primarily on instructing  
            circulators about the requirements of state law when  
            circulating petitions, while the registration requirements  
            appear to be designed primarily to assist in the enforcement  
            of this bill and of other provisions of state law.  This bill  
            additionally requires individuals who receive compensation for  
            the specific purpose of soliciting signatures on an initiative  
            or referendum petition, when circulating a petition, to wear a  
            badge that contains the person's photograph and registration  
            number.  

          In 1999, the United States Supreme Court examined a Colorado law  
            that provided a number of restrictions on the signature  
            collection process for ballot initiatives.  In that case the  
            court ruled that there must be a compelling state interest to  
            justify any restrictions on initiative petition circulation.   
             Buckley v. American Constitutional Law Foundation  (1999), 525  
            U.S. 182.

          In  Buckley  , the court invalidated Colorado's requirement that  
            paid petition circulators wear badges identifying themselves  
            and identifying that they are paid circulators.  The court  
            stated that the requirement to wear badges inhibits  







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            participation in the petitioning process.  "Because the badge  
            requirement compels personal name identification at the  
            precise moment when the circulator's interest in anonymity is  
            greatest, it does not qualify for inclusion among 'the more  
            limited [election process] identification requirement[s]."   
            The Buckley court did not rule on the validity of the  
            requirement that a circulator wear a badge stating whether a  
            petition circulator was paid or a volunteer.

          It could be argued that this bill's requirements for certain  
            circulators to wear a badge could be susceptible to a court  
            challenge in light of the ruling in  Buckley  .  Unlike the badge  
            required by the Colorado law at issue in  Buckley  , however, the  
            badge required by this bill does not "compel personal name  
            identification," or otherwise compromise the anonymity of the  
            circulator because it does not require the circulator's name  
            to appear on the badge.  Instead, the badge would contain a  
            photograph of the circulator and that circulator's  
            registration number issued by the SOS.  Requiring circulators  
            to wear this badge can help facilitate enforcement of this  
            bill's provisions and of existing law by allowing voters who  
            are asked to sign a petition to verify that the person  
            circulating the petition is registered in accordance with the  
            law, and to report any misconduct by petition circulators by  
            referencing the registration number of a circulator who  
            violates the law.  Because the badge required by this bill  
            helps facilitate enforcement of the state's laws governing the  
            initiative process while maintaining the anonymity of the  
            circulator, the badge requirement in this bill would appear to  
            be on firmer ground than the badge requirement in question in  
             Buckley  .

           4)Invalidation of Signatures  :  Existing law generally is silent  
            on the issue of whether violations of state law prohibiting  
            improper signature-gathering tactics will result in the  
            signatures on those petitions being invalidated.  In at least  
            one case, however, a court invalidated signatures gathered to  
            qualify an initiative for the ballot due to improper  
            signature-gathering tactics by the proponents of the measure.   
            In  San Francisco Forty-Niners v. Nishioka  (1999), 75  
            Cal.App.4th 637, the California Court of Appeals for the First  
            District, Division One, prohibited an initiative measure from  
            appearing on the ballot because the initiative petition  
            included false statements intended to mislead voters, in  
            violation of Section 18600 of the Elections Code.  In this  







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            case, the false statements appeared on the text of the  
            petition itself.  As a result, every person who was asked to  
            sign the petition was exposed to these false statements that  
            were intended to mislead voters.

          In a case where petition circulators make false or misleading  
            statements about a proposed ballot measure, or engage in other  
            illegal signature-gathering tactics in an attempt to get  
            voters to sign a petition, it is unclear whether that  
            misconduct can result in signatures being invalidated.   
            Committee staff is not aware of any court cases that have  
            addressed this issue.

          This bill explicitly provides that signatures on a petition  
            section shall be deemed invalid if the signatures were  
            solicited and submitted by a person who engages in fraud,  
            misrepresentation, or other improper signature-gathering  
            tactics, as specified.  In order for signatures to be  
            invalidated under this provision, the SOS or an elector would  
            have to file a civil action, and would have the burden of  
            showing a violation by clear and convincing evidence.

          This bill additionally provides that signatures are invalid if  
            they are gathered by a person who receives money or other  
            valuable consideration for the specific purpose of soliciting  
            signatures if that person was not registered as required by  
            this bill at the time those signatures were gathered.  
           
           5)Non-Resident Circulators  :  In 2008, the United States Court of  
            Appeals for the Ninth Circuit ruled in  Nader v. Brewer  (2008),  
            531 F.3d 1028, that it was unconstitutional for states to  
            prevent non-residents from circulating petitions.  In 2009,  
            the United States Supreme Court declined to hear the case on  
            appeal, so the Ninth Circuit opinion still stands.

          In the latter half of 2012, a number of California counties were  
            sued because their county clerks were allegedly enforcing  
            state laws that prevent non-Californians from circulating  
            initiatives and/or nomination papers.

          In light of the court's ruling in  Nader  , this bill repeals a  
            requirement that a person must be qualified to register to  
            vote in the state in order to circulate an initiative or  
            referendum petition in the state.  To help facilitate  
            enforcement of the law in the case of circulators that are not  







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            residents of California, this bill requires non-residents to  
            sign a declaration consenting to the jurisdiction of the state  
            and to service of process for any legal action for the  
            purposes of an investigation or prosecution by any state or  
            local agency.

           6)Arguments in Support :  The sponsor of this bill, the  
            California Labor Federation, writes, in support:

               Gone are the days when the initiative process was  
               driven by average Californians compelled to act when  
               legislators would not.  Petition circulators were once  
               almost universally unpaid, and signature gathering  
               campaigns failed most often from a lack of volunteers.  
                An inability to qualify was simply a sign that  
               proponents needed more time to recruit an army of  
               volunteers with which to cultivate sufficient  
               grassroots support.  Without both public support and  
               devoted volunteers, campaigns could not generate the  
               required number of petition signatures.  The system,  
               on its own, eliminated proposals that were not ready  
               to become law.

               That system is now a distant memory.  The activists  
               who organized widespread support by devoting time,  
               energy, and passion towards a cause have been  
               replaced; now, wealthy individuals and corporations  
               hire signature gathering firms who run the show.   
               Petition circulators are paid up to $7 for every  
               signature, volunteers and/or grassroots support are  
               nowhere to be found, and many circulators openly  
               mislead potential signers?.

               Taken together, [the] reforms [in AB 857] will  
               dramatically strengthen the integrity of the process  
               by which proposed ballot measures qualify for the  
               ballot.  AB 857 will weaken existing incentives for  
               fraud and deceit while protecting the public interest,  
               promoting transparency, and improving the overall  
               quality of voter-approved public policy.

           7)Concerns Expressed  :  While not taking an official position on  
            this bill, the California Association of Clerks and Election  
            Officials (CACEO) raises concerns about certain provisions of  
            this bill.  In its letter, CACEO writes:  







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               Election Management System Capacity  . Discussions with  
               vendors have confirmed that existing election  
               management systems are not programmed to administer  
               this proposal. This will require numerous programming  
               changes to the current applications in order to comply  
               and to avoid unwanted or unexpected consequences.  
               Moreover, existing systems do not have separate  
               applications for state, county, city or district  
               petitions, or separate applications based on type of  
               petition (initiative, referendum or recall), requiring  
               the development of a completely separate application  
               for state initiatives.

                Proposal Appears to Conflict with Existing Law or  
               Regulation  . The requirement to ensure signatures are  
               collected and included in the verification may be in  
               direct conflict with subsection (d) of Section 9030 of  
               the California Elections Code. Meeting current rules  
               and applying analysis relating to duplicate signatures  
               across petition sections by circulator type would need  
               a solution.

                Increased Workload, Time and Related Cost  .  
               Implementation will require a higher level of manual  
               processing to determine raw counts and prior to data  
               entry or computer processing, increasing the time to  
               complete review and creating a need for additional  
               overtime in order to meet current petition deadlines.  
                
           8)State Mandates  :  The 2011-12 and 2012-13 state budgets  
            included the suspension of various state mandates as a  
            mechanism for cost savings.  Included on the list of  
            suspensions were all six existing elections-related mandates.   
            All the existing elections-related mandates have been proposed  
            for suspension again by the Governor in his budget for the  
            2013-14 fiscal year.  The Committee may wish to consider  
            whether it is desirable to establish new mandates when the  
            Legislature has voted to suspend the existing election  
            mandates.  
           
           9)Related Legislation  :  AB 400 (Fong), which is pending on the  
            Assembly Floor, requires an initiative, referendum, or recall  
            petition that is circulated by a paid circulator to include a  
            statement identifying the five largest contributors in support  







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                                                                  Page  17

            of the measure.  AB 400 was approved by this committee on a  
            5-2 vote.

          SB 477 (Steinberg), which is pending in the Senate Rules  
            Committee, declares the intent of the Legislature to enact  
            legislation to prohibit a political campaign committee from  
            accepting large contributions for supporting the qualification  
            of a statewide initiative ballot measure until the committee  
            has first received a significant number of small individual  
            contributions made for the same purpose, thereby demonstrating  
            a sufficient degree of public support for the proposed  
            initiative measure.  
           
           10)Previous Legislation  :  AB 651 (Hueso) of 2011, would have  
            required all professional petition firms, as defined, to  
            register with the SOS, and to review the law relating to  
            obtaining petition signatures with each paid petition  
            circulator before the circulator could obtain signatures for  
            the firm.  AB 651 was vetoed by Governor Brown, who stated  
            that he was "not convinced that these new requirements are  
            needed or would improve the initiative process."

          SB 334 (DeSaulnier) of 2011, would have required the state  
            ballot pamphlet for an election to include a list of the five  
            highest contributors of $50,000 or more to each primarily  
            formed committee supporting and opposing the ballot measures  
            that would appear on the ballot at that election.  SB 334 was  
            vetoed by Governor Brown, who expressed concern that the  
            cutoff date for including contributors in the ballot pamphlet  
            in order to comply with printing deadlines could "mislead  
            voters about the true supporters and opponents of a ballot  
            measure."

          AB 2946 (Leno) of 2006, would have provided that any signatures  
            collected in violation of any provision of state law relating  
            to the circulation of a statewide initiative, referendum, or  
            recall petition shall be invalid and shall not count towards  
            qualification of the initiative, referendum, or recall, among  
            other provisions.  AB 2946 was vetoed by Governor  
            Schwarzenegger, who argued that it would "allow legal  
            technicalities to thwart the will of hundreds of thousands of  
            Californians who choose to sign initiative petitions."
           
          REGISTERED SUPPORT / OPPOSITION  :   








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           Support 
           
          California Labor Federation (co-sponsor)
          California Professional Firefighters (co-sponsor)
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Teamsters Public Affairs Council
          Engineers and Scientists of California
          International Longshore & Warehouse Union
          Laborers' International Union of North America Local 777
          Laborers' International Union of North America Local 792
          Professional & Technical Engineers, Local 21
          San Mateo County Central Labor Council
          UNITE HERE!
          United Food and Commercial Workers Union, Western States Council
          Utility Workers Union of America, Local 132

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094