BILL ANALYSIS Ó SB 360 Page 1 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. SB 360 Page 2 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 SB 360 Page 3 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 SB 360 Page 4 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. SB 360 Page 5 Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081