BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                        AB 857|
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                                    THIRD READING


          Bill No:  AB 857
          Author:   Fong (D)
          Amended:  8/12/13 in Senate
          Vote:     21

           
           SENATE ELECTIONS & CONSTIT. AMEND. CMTE.  :  4-1, 7/2/13
          AYES:  Torres, Hancock, Padilla, Yee
          NOES:  Anderson

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           ASSEMBLY FLOOR  :  53-24, 5/29/13 - See last page for vote


           SUBJECT  :    Initiatives:  petition circulators

           SOURCE  :     California Labor Federation
                      California Professional Firefighters


           DIGEST  :    This bill makes several changes to initiative  
          signature gathering procedures relating to qualification  
          requirements for the state ballot.

           ANALYSIS  :    

          Existing law:

          1.Allows electors to propose statutes and amendments to the  
            Constitution and to adopt or reject them through the  
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            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.
           
           This bill:

           1. Requires at least 20% of the signatures that are required to  
             qualify an initiative measure to be solicited by a person who  
             does not receive money for signature gathering; and requires  
             the county elections official to determine the number of  
             signatures that were submitted by unpaid circulators.

           2. Requires initiatives circulated by volunteers to be printed  
             on white paper with a contrasting ink color, and requires  
             those circulated by paid individuals to be printed on paper  
             that is a color other than white with a contrasting ink  
             color.

           3. Provides local election officials with two additional days  
             (10 up from the current eight day requirement) to determine  
             the total number of signatures affixed to a petition; and an  
             additional five days (35 days up from the current 30 day  
             requirement) to determine that a petition has received a  
             sufficient number of signatures.

           4. Contains Legislative Intent to do the following:  1)  
             preserve and protect the integrity of California's initiative  
             process, 2) ensure that initiative petitions have sufficient  
             public support from informed voters, and 3) protect access to  
             the initiative process and preserve the constitutional right  
             of voters to engage in direct democracy.

           5. Requires initiatives circulated by paid signature gatherers  
             to include the following statement in 18-point boldface type:

             "NOTICE TO THE PUBLIC:  THIS PETITION IS BEING CIRCULATED BY  
             A PERSON PAID TO OBTAIN YOUR SIGNATURE.  YOU ARE ENCOURAGED  

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             TO READ THE CONTENTS OF THIS PETITION BEFORE SIGNING."

           6. Requires initiatives to contain an additional disclosure in  
             14-point boldface type informing voters of the name of the  
             political committee that has paid for the circulation, and  
             the names of donors who had contributed $50,000 or more  
             during the preceding six months. 

           7. Revises the existing declaration of the person soliciting  
             signatures that is attached to the initiative or referendum  
             to state that the initiative is being circulated by a  
             volunteer (if that is the case) and that the signatures  
             attached should be counted toward the 20% minimum  
             requirement.

           8. Requires the Secretary of State to enact regulations  
             pursuant to the provisions in this measure.

           9. Excludes individuals who are an employee or a member of a  
             nonprofit organization and who are paid by the nonprofit  
             organization as part of their employment from the "paid  
             signature gatherer" provisions - unless the primary purpose  
             of that employment is to gather signatures on an initiative  
             petition.

           10.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% requirement. 

           11.Provides that signatures solicited through direct mail do  
             not count toward the 20% requirement, unless as specified.

           12.Provides that nominal benefits other than money, such as  
             food, transportation or lodging, do not preclude that  
             individual from soliciting signatures as a volunteer.

           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 petition.


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           Background
           
          The initiative process is used by the voters to propose new  
          statutes, changes to existing law, and to propose amendments to  
          the California Constitution.  Generally, any matter that is a  
          proper subject of legislation can become an initiative measure;  
          however, no initiative measure addressing more than one subject  
          area may be submitted to the voters or have any effect.  An  
          initiative measure is placed on the ballot after its proponents  
          successfully satisfy the requirements prescribed by law.

          Existing law 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 by a volunteer, and  
          that voters have the right to ask if a petition circulator is a  
          paid gatherer or volunteer.

           Related Legislation
           
          SB 477 (Steinberg) 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.

          AB 400 (Fong) 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  
          of the measure.

           Prior Legislation
           
          SB 334 (DeSaulnier, 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."

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          AB 2946 (Leno, 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."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

           Approximately $50,000 to Secretary of State for revising  
            regulations (General Fund)

           Unknown, probably not substantial, costs to local county  
            election officials (General Fund)

           SUPPORT  :   (Verified  8/30/13)

          California Labor Federation (co-source) 
          California Professional Firefighters (co-source) 
          Alameda Labor Council, AFL-CIO
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California School Employees Association, AFL-CIO
          California Teamsters Public Affairs Council
          Communications Workers of America District 9 
          Engineers and Scientists of California
          Equality California
          International Longshore & Warehouse Union
          Laborers' International Union of North America Locals 777 and  
          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  :    (Verified  8/30/13)

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          Howard Jarvis Taxpayers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, 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 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 necessarily a function  
          of whether there is broad-based community support for a proposed  
          measure, as originally intended, but rather can depend 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.

          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.

          This bill 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, this bill 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, this bill helps ensure that  
          measures do not qualify for the ballot due to fraudulent  

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          activity by signature gatherers by prohibiting fraudulently  
          collected signatures from being used to qualify a measure for  
          the ballot.  Finally, this bill helps protect the integrity of  
          the initiative process by requiring professional petition firms  
          to train their employees 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 ten years.

           ARGUMENTS IN OPPOSITION  :    The Howard Jarvis Taxpayers  
          Association (HJTA) states in opposition, "HJTA has a long  
          history of opposing any legislation that makes it more difficult  
          for voters to engage in the initiative process.  This extends to  
          the signature gathering necessary to qualify a measure for the  
          ballot.  AB 857 makes this process immeasurably more difficult.   
          It forces paid petition circulators to register with the  
          Secretary of State, complete a mandated training program and  
          wear a badge with their registration number.  If circulators  
          fail to register, the signatures they gather will not count.   
          The bill also requires that ballot measure proponents keep all  
          records pertaining to an initiative for two years.  This  
          includes:  payroll, copies of all petition sections that were  
          filled out for compensation, contracts, and training materials.   
          Failure to provide them, upon demand, to the Secretary of State  
          will result in invalidation of signatures.  Signatures gathered  
          by persons who engage in fraud, as presumably determined by a  
          civil action, would also be invalidated.

          "AB 857 would place an unwarranted hindrance on the initiative  
          process that would hurt policy agenda's on both sides of the  
          political aisle.  Perhaps the best recent example is Proposition  
          30, which had to qualify for the ballot in an extremely short  
          and costly timeframe.  Would petition gatherers have time to  
          register and take a class before collecting signatures?  If  
          signatures are gathered and proponents have not kept track of  
          payroll records, do the signatures count?

          "The intent of the bill is not to provide safeguards for the  
          initiative process, but rather to invent ways to ensure that  
          measures the Secretary of State doesn't agree with are removed  
          from the ballot.  This runs directly contrary to the 64% of  
          Californians in a recent PPIC poll that said they want to vote  
          on measures that come before them.  Just because some believe  
          that the initiative process itself impedes the power of the  

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          Legislature doesn't mean we should limit participation in one of  
          the most fundamental tenants of our democracy."


           ASSEMBLY FLOOR  : 53-24, 05/29/13
          AYES: Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,  
            Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,  
            Hall, Roger Hernández, Jones-Sawyer, Levine, Lowenthal,  
            Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Weber, Wieckowski, Williams, Yamada, John A.  
            Pérez
          NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,  
            Logue, Maienschein, Mansoor, Melendez, Morrell, Nestande,  
            Olsen, Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED: Holden, Linder, Vacancy


          RM:nl  9/3/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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