BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 857| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 857 Page 2 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 CONTINUED AB 857 Page 3 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. CONTINUED AB 857 Page 4 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." CONTINUED AB 857 Page 5 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) CONTINUED AB 857 Page 6 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 CONTINUED AB 857 Page 7 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 CONTINUED AB 857 Page 8 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 **** END **** CONTINUED