BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 360
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          Date of Hearing:   August 21, 2103

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 360 (Padilla) - As Amended:  August 6, 2013 

          Policy Committee:                             ElectionsVote:5-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill changes the procedures and criteria for certification  
          of voting systems, and expands the allowable use of state  
          general obligation bond funds for voting system modernization.  
          Specifically, this bill:

          1)Requires the Secretary of State (SOS) to adopt and publish  
            voting system standards and regulations, as specified, to  
            include standards that meet or exceed federal voluntary voting  
            system guidelines set forth by the federal Elections  
            Assistance Commission (EAC) or its successor agency.

          2)Requires the SOS to study the performance of voting systems in  
            use in the state.

          3)Prohibits a jurisdiction from purchasing or contracting for a  
            voting system unless it has been certified or conditionally  
            approved by the SOS, except that a local jurisdiction may  
            contract and pay for the following:

             a)   Research and development of a new, non-certified or  
               conditionally approved voting system that uses only  
               nonproprietary software and firmware with disclosed source  
               code, except for unmodified commercial off-the-shelf  
               software and firmware.

             b)   Manufacture of the minimum number of voting system units  
               reasonably necessary to either:

               i)     Test and seek certification or conditional approval  
                 of the voting system.









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               ii)    Test and demonstrate the capabilities of the voting  
                 system in a pilot program as specified.

          4)Repeals authority of the SOS to employ three expert  
            technicians to examine a voting system, and instead requires  
            the SOS to use a state-approved testing agency, as defined, or  
            expert technicians, to examine and test voting systems or  
            parts of voting systems proposed for use or sale in the state.  
             

          5)Requires the SOS to publish and make publicly available on his  
            or her Internet Web site a quarterly report of regulatory  
            activities related to voting systems.

          6)Authorizes a governing board, without formally adopting a  
            voting system, to test the use of a voting system in a pilot  
            program, as specified, if the voting system is either  
            certified or conditionally approved prior to its experimental  
            use, or meets specified technical requirements and SOS's  
            standards for use of a voting system and regulations for the  
            pilot program.

          7)Requires a governing board, no later than nine months before  
            the election including the voting system, to submit a plan for  
            the pilot program to the SOS, which must approve or reject the  
            plan within three months.

          8)Provides that a person, corporation, or public agency applying  
            for certification of a voting system is responsible for all  
            costs associated with testing the system.

          9)Permits the SOS to contract with one or more experts to assist  
            with the certification of a voting system, including for  
            testing and examination.

          10)Authorizes Voting Modernization Fund monies to be used to  
            purchase systems certified or conditionally approved by the  
            SOS, instead of only systems certified by the SOS, and allows  
            a county to use these moneys for the purposes specified in  
            (3)(a) and (3)(b) above.

           FISCAL EFFECT  

          Minor ongoing GF cost, in the range of $50,000, to the SOS  
          associated with additional voting system evaluation  








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          responsibilities formerly conducted by the EAC and for  
          evaluation of any voting system pilot programs. The SOS  
          indicates that voting systems standards and regulations  
          consistent with this bill's requirements are already planned or  
          under development.

           COMMENTS  

           1)Background  . Current law requires a voting system and any  
            modification to a voting system to be approved by the SOS  
            before it can be used in any election.  Additionally, under  
            California law, electronic voting systems must be certified at  
            the federal level by the EAC before they can be submitted to  
            the SOS's office for review. The SOS's review process is  
            designed to augment, not duplicate, the EAC review and  
            approval process.

            The EAC was established in 2002 to serve as an independent,  
            bipartisan commission responsible for developing guidance to  
            meet the Help America Vote Act (HAVA) requirements and to  
            accredit testing laboratories and certify voting systems, as  
            well as audit the use of HAVA funds.  The EAC has been without  
            a quorum of commissioners since 2011, however.  There are  
            three bills pending in the House of Representatives that  
            eliminate the EAC.

           2)Purpose  . Given the lack of a functioning EAC, this bill  
            removes the federal pre-certification or qualification  
            requirement. To retain the federal testing and approval  
            processes, however, this bill requires the SOS to adopt and  
            publish voting system standards and regulations governing the  
            use of voting systems that meet or exceed federal voluntary  
            voting system guidelines set forth by the EAC or its  
            successor, and requires the state to use the latest updated  
            EAC guidelines until state standards are adopted.

           3)Voting Modernization Bond Fund  .  At the March 2002 state  
            primary election, voters approved $200 million in state  
            general obligation bond funding (Proposition 41) to help  
            counties pay for new voting equipmen, and established a Voting  
            Modernization Board to carry out this task. Proposition 41  
            states that, "Fund money shall only be used to purchase  
            systems certified by the Secretary of State" and that counties  
            receiving funds must match "fund moneys at a ratio of one  
            dollar of county moneys for every three dollars of fund  








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            moneys."

            In April 2003, California received $265 million in HAVA funds,  
            including $75 million for new voting equipment and $40 million  
            for a new statewide voter database.  The voting equipment  
            funds were distributed to each county beginning in 2004.   
            California counties were then authorized to purchase a new  
            voting system. Nearly all California counties purchased their  
            systems from five different vendors.

            SB 360 authorizes fund monies to be used to purchase voting  
            systems that are conditionally approved by the SOS and allows  
            a county to use fund monies to contract and pay for the  
            research and development of a new nonproprietary voting system  
            that uses disclosed source code and has not been certified or  
            conditionally approved by the SOS.  In addition, this bill  
            permits a county to use public funds to manufacture a limited  
            number of voting system units that are reasonably necessary to  
            test and seek certification or conditional approval as well as  
            test and demonstrate the capabilities of the voting system in  
            a pilot program.

            As of December 2012, about $65.6 million of bond moneys  
            allocated to counties was uncommitted. About three-fourths of  
            this total was Los Angeles County's unspent allocation.

           4)Los Angeles County Voting Systems Assessment Project (VSAP)  .   
            Due to Los Angeles County's size, diversity, complexity, and  
            the limited voting systems market, it is difficult for Los  
            Angeles to consider a commercial off-the-shelf voting system.   
            Consequently, in 2009, the Los Angeles County  
            Registrar-Recorder/County Clerk (RR/CC) launched the VSAP in  
            response to the growing voting system needs and challenges  
            faced by Los Angeles County.

            The VSAP is noteworthy because it is attempting to first  
            define the kind of voting system it wants, and then be  
            directly involved in the system's development, which could  
            make Los Angeles the first county in the United States to  
            develop, operate, and own its voting system.

            SB 360 would allow Los Angeles, or any other county, to use  
            its allocation of bond funds toward development of the new  
            system and to manufacture sufficient units to test the system  
            in a pilot program.








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