BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 361
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          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 361 (Padilla) - As Amended:  August 26, 2013 

          Policy Committee:                             ElectionsVote:5-1

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

           SUMMARY  

          This bill requires the DMV, the California Community Colleges  
          (CCC), the California State University, and voter registration  
          agencies as designated by the National Voter Registration Act of  
          1993 (NVRA) -one year after the Secretary of State (SOS)  
          certifies that the state has a statewide voter registration  
          database (VoteCal) in compliance with the federal Help America  
          Vote Act of 2002 (HAVA)- to allow customers, students, and  
          clients, respectively, to submit voter registration forms  
          electronically to the SOS. Specifically, this bill:

          1)Requires the DMV to ensure that a system allowing a person to  
            electronically submit an application for a new or renewal  
            driver's license or change of address for a driver's license,  
            and also affords the applicant an opportunity to  
            electronically submit a voter registration affidavit or update  
            his or her voter registration information. The DMV must  
            electronically transmit the voter registration information to  
            the Secretary of State (SOS) in a format prescribed by the S0S  
            and in a manner that does not require the applicant to  
            duplicate or re-enter information provided on the driver's  
            license application.

          2)Requires voter registration agencies, under the NVRA, to  
            provide the same voter registration capability as in (1).

          3)Requires the SOS, in the written form currently provided to  
            high school and college students describing voter registration  
            eligibility and procedures, to inform each student that he or  
            she may complete and submit the voter registration application  
            electronically on the SOS's website.









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          4)Requires CSU and CCC campuses that operate automated class  
            registration systems to allow students, during class  
            registration, to elect to apply to register to vote online, as  
            provided under current law, and encourages UC to comply with  
            this requirement.

          5)Requires CSU and CCC campuses to provide the same voter  
            registration capability as in (1) during the online voter  
            registration process, and encourages UC to comply with this  
            requirement.

          6)Requires the CCC or CSU campus, at the start of each academic  
            term, to send an email notice to each student that exclusively  
            conveys voter registration information, as specified, and  
            encourages UC to comply with this requirement.

          7)Requires the SOS website, upon certification of VoteCal to  
            allow a voter to:

             a)   Check his or her voter registration status and review  
               his or her voter registration information.
             b)   Locate his or her polling place or the polling place  
               location for any residence in the state within 30 days  
               before an election.
             c)   Determine whether his or her vote-by-mail ballot was  
               counted.
             d)   Determine whether his or her provisional ballot was  
               counted.
             e)   Opt out of receiving his or her voter pamphlet by mail  
               and instead receive electronically.

           FISCAL EFFECT

           One-time General Fund costs of around $18 million and ongoing  
          General Fund costs of around $1 million, with ongoing savings  
          exceeding $1 million.

           1)SOS Costs  . The bill requires the SOS to work with colleges and  
            universities, NVRA agencies, and the DMV to establish online  
            links to the SOS's online voter registration system such that  
            an applicant is not required to duplicate or re-enter  
            information already provided by the applicant to the entity.  
            This provision is to be operative one year after the online  
            system (VoteCal) is certified as operational, which is  
            expected in July 2016.








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            The SOS is currently developing a system with Rock the Vote  
            whereby that organization may direct applicants to the SOS's  
            online voter registration website and pre-populate data fields  
            with information already collected from the applicant, such as  
            name and address. Once this application is operational, other  
            entities such as colleges and NVRA agencies may be able create  
            similar applications and connect to the online voter  
            registration system. 

            The SOS estimates its costs-for IT staff time to ensure that  
            systems are securely connected and operating correctly-would  
            be $10,000, but this does not include the larger cost, likely  
            in the tens of thousands of dollars, for each entity to  
            develop the application for their legacy computer systems.The  
            SOS indicates that, since there may be some duplication of  
            tasks stemming from connecting to data systems that are  
            virtually the same, its cost per site may be 25% less. 

              a)   For Colleges and Universities  . Using the above cost  
               factor, total costs for 72 community college districts, 23  
               CSU campuses, and 10 UC campuses would be about $800,000.

              b)   For NVRA agencies  . Total costs for 603 agencies would be  
               $4.6 million.

              c)   For the DMV  . Due to security requirements, the SOS  
               estimates a one-time cost of around $50,000.

            The requirements in (7) above will be incorporated into the  
            VoteCal system.

            The SOS also anticipates annual costs of $125,000 for an IT  
            position to provide ongoing support with the hundreds of sites  
            described above.

           2)Colleges and Universities  . Initial costs are estimated at  
            $700,000 for the community college-about 80% of the 72  
            districts use one of three systems and the other 20% have  
            legacy system that will require a unique application--$500,000  
            at CSU, and $500,000 at UC. Ongoing costs for the three  
            segments would be around $500,000.

           3)NRA agencies  . Initial costs would depend on the extent to  
            which these agencies have common data systems. For example,  








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            the 58 counties use one of three systems. Using the SOS's  
            assumption of 25% redundancy, initial costs, assuming $20,000  
            per site, would total $9 million.

           4)DMV  would incur one-time costs in the low millions of dollars.  
            (The bill only requires the DMV to implement the voter  
            registration requirements if it develops an online driver's  
            license application system.) The DMV indicates that it could  
            not use Motor Vehicle Account funds for this activity.

           5)Savings  . County elections offices that currently manually  
            enter voter registration information into their systems will  
            realize significant ongoing saving from the expansion of  
            paperless registration. Statewide these savings are unknown,  
            but would likely exceed $1 million annually.

           COMMENTS  

           1)Purpose  . According to the author, "California has fallen  
            behind other states in the adoption of election information  
            technology that can expand voter participation and ensure  
            every vote is counted? In February of this year, the Pew  
            Center on the States released the Election Performance Index  
            which measures 17 indicators of effective election  
            administration. California ranks 48th, right below West  
            Virginia and just above Alabama and Mississippi.

            "A paperless system that allows for the electronic  
            transmission of voter registration applications to election  
            officials and to the statewide registration database reduces  
            both data entry costs and the costs associated with clerical  
            errors. Paperless registration in Arizona has reduced voter  
            registration costs to three cents per application from 83  
            cents for paper applications."

           2)Background  . According to the Brennan Center's 2010 report,  
            "Voter Registration in a Digital Age," seven states - Arizona,  
            Delaware, Florida, Kansas, Pennsylvania, Rhode Island, and  
            Washington - currently have fully automated or paperless voter  
            registration systems with their motor vehicle agencies. The  
            report defines automated voter registration as one in which  
            the government offices, including DMV or social service  
            offices, collect and transfer voter registrations to elections  
            officials without using separate paper forms.  According to  
            the report, these offices enter registration data into their  








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            computers and transfer them electronically in a format that  
            the elections official can securely review and upload directly  
            into their voter registration database systems. Additionally,  
            the report states that at least ten states - Arkansas,  
            California, Georgia, Kentucky, Michigan, New Jersey, North  
            Carolina, South Carolina, South Dakota and Texas - have DMV  
            registrations that are partially automated.  

           3)National Voter Registration Act  . The NVRA was enacted by  
            Congress in 1993 and took effect in 1995. Also known as the  
            "Motor Voter Act," the enactment of the NVRA was intended to  
            enhance and increase voting opportunities for eligible voters  
            to register to vote and maintain their registration.  In  
            addition to other methods of voter registration states offer,  
            the NVRA requires states to provide the opportunity to apply  
            to register to vote for federal elections through various  
            methods.

            In California, the following state and local offices are NVRA  
            voter registration agencies: DMV, public assistance agencies,  
            including county human service agencies and community-based  
            nonprofit organizations under contract to administer the  
            Women, Infants, and Children (WIC) program, state-funded  
            agencies primarily serving persons with disabilities, armed  
            Forces Recruitment offices, Franchise Tax Board offices  
            offering forms, instruction, and assistance to the public, and  
            Board of Equalization offices serving the public. There are an  
            estimated 600 NVRA voter registration agencies in the state.

           4)Related Legislation  . AB 1122 (Levine), which required the DMV,  
            to the extent the state's plan for implementation of the NVRA  
            is inconsistent with the NVRA, to take additional steps to  
            fully implement and further comply with the NVRA, was held  
            this committee's Suspense file.

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