BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 857
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 857 (Fong) - As Amended:  April 16, 2013 

          Policy Committee:                              ElectionsVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill establishes additional requirements for initiative  
          petitions and for persons paid to solicit signatures for such  
          petitions. Specifically, this bill: 

          1)Requires an initiative petition circulated by a paid person to  
            be printed on yellow paper and to include all of the  
            following:

             a)   A specified printed warning that the circulator is being  
               paid and an advisement to read the contents before signing.

             b)   The identity of the political committee paying the  
               circulator and a list of top three donors who have  
               contributed more than $50,000 within the last six months.  
               If this information changes, it is to be updated within 14  
               days.

          2)Requires a petition circulated by an unpaid person to be  
            printed on white paper, and requires that person to sign an  
            affidavit from the Secretary of State (SOS) containing  
            specified information, including a declaration that they are  
            not paid for soliciting signatures.

          3)Requires that at least 20% of the total signatures submitted  
            to qualify an initiative be from petitions circulated by  
            unpaid persons.

          4)Stipulates that an employee or member of a nonprofit  
            organization who is paid as part of that employment or  
            membership is not considered a paid signature gatherer for  
            purposes of (3).








                                                                  AB 857
                                                                  Page  2


          5)Stipulates that signatures obtained by a member of a political  
            party who receive money from that party for soliciting those  
            signatures does not count toward meeting the requirement in  
            (3).

          6)Stipulates that signatures gathered via direct mail do not  
            count toward meeting the requirement in (3) if the person  
            soliciting the signatures is paid primarily for that purpose,  
            unless the person belongs to a nonprofit organization per (4).

          7)Requires a person who pays to have signatures solicited and a  
            person who is paid for this work to register with the SOS and  
            complete a training program pursuant to regulations adopted by  
            the SOS.

          8)Requires a person required to register per (7) to file an  
            application, as specified, with the SOS, and requires the SOS,  
            within five business days of receiving a completed application  
            to assign the person a registration number, which shall be  
            effective for two years.

          9)Stipulates that signatures submitted by a paid circulator who  
            is not registered with the SOS do not count toward qualifying  
            the initiative.

          10)Requires paid signature gatherers to wear a badge, as  
            prescribed in regulation by the SOS, containing their  
            photograph and registration number.

          11)Requires the SOS to revoke the registration of person  
            engaging in fraudulent conduct with respect to signature  
            gathering and stipulates that the signatures gathered by this  
            person are invalid.

          12)Requires persons paying to have initiative petitions  
            circulated to maintain specified records, and requires the SOS  
            to review these records on a regular schedule.

          13)Makes all of the above applicable to initiatives for which  
            Attorney General has issued a circulating title and summary on  
            or after October 1, 2013.

           FISCAL EFFECT  









                                                                  AB 857
                                                                  Page  3

          1)The SOS will incur GF significant costs to establish a  
            registration and training program for paid petition  
            circulators and to regularly review accounts of paid signature  
            gathering entities. The number of registrants is unknown, but  
            assuming 75,000 statewide, annual costs are estimated at  
            around $1.6 million (somewhat higher in the first year) for 22  
            staff to process applications, respond to inquiries,  
            investigate complaints and conduct enforcement. (The SOS's  
            current registration program for notaries operates with a  
            staff of 44 for 161,000 registrants.) There will also be  
            one-time information technology costs exceeding $1  
            million-requiring a feasibility study report and state control  
            agency approval-plus ongoing general administrative costs  
            (business services and human resources) of around $250,000. 

          2)County elections officials indicate that an initiative will  
            have separate volunteer and paid circulator-gathered  
            petitions, and thus will be treated as two separate petitions  
            for their signature-checking systems in order to meet the  
            minimum threshold requirement of volunteer-gathered  
            signatures. For a voter who signs both the volunteer's  
            petition and the paid circulator's petition, their systems  
            cannot cross-reference the two different petitions for  
            duplicates. Therefore, the state-reimbursable cost for all 58  
            counties to conduct this cross-referencing could exceed  
            $150,000 per initiative measure.  Depending on the number of  
            initiatives submitted for qualification, the total costs could  
            easily exceed $1 million annually.

           COMMENTS  

           Purpose  . According to the author, over the last 30 years,  
          the initiative has become one of the favorite tools of  
          well-financed special interest groups, contrary to the  
          original intent of the initiative process. Voters recognize  
          that the ability of an initiative's proponents to gather  
          the necessary signatures to qualify a measure for the  
          ballot depends on the amount of money that a proponent is  
          willing to spend, rather than whether there is broad-based  
          community support for a proposed measure.

          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  








                                                                  AB 857
                                                                  Page  4

          1990.  In the past 20 years, there have been dozens of  
          convictions for fraudulent signature gathering, and most  
          (if not all) of those convictions have been of paid  
          signature gatherers. 

          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.
           
           According to the author, to ensure that proposed initiatives  
          have broad-based community support, AB 857 requires at least 20%  
          of initiative petition signatures to be collected by grassroots  
          signature gatherers. Additionally, AB 857 seeks to 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 SOS. 

          Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081