BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1094 (Hernandez) - Initiatives:  petition circulators
          
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          |Version: April 18, 2016         |Policy Vote: E. & C.A. 4 - 1    |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 2, 2016       |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1094 would enact several changes to initiative  
          signature gathering procedures relating to qualification  
          requirements for the state ballot.

          Fiscal Impact: The Secretary of State's Office (SOS) indicates  
          that it would incur one-time costs of $55,000 to revise  
          regulations (General Fund).
          
          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.

          Current 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  







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          that voters have the right to ask if a petition circulator is a  
          paid gatherer or volunteer.

          Proposed Law: This bill would, among other things, do the  
          following: 

                 Require at least 15 percent of the signatures necessary  
               to qualify an initiative measure be solicited by a person  
               who does not receive money or other valuable consideration  
               exclusively or primarily for the specific purpose of  
               soliciting signatures of electors on the petition, as  
               specified.

                 Provide that a person who is an employee or member, as  
               defined, of a nonprofit organization, other than an  
               organization with the primary purpose of soliciting  
               signatures on initiative petitions, who receives money or  
               other valuable consideration from the organization and as  
               part of that employment or membership solicits signatures  
               for the qualification of an initiative measure shall be  
               deemed to be a person who, for purposes of satisfying the  
               15 percent requirement, does not receive money or other  
               valuable consideration for the specific purpose of  
               soliciting signatures of electors, unless the primary  
               purpose of that employment or membership is to solicit  
               signatures on an initiative petition.

                 Require that when determining whether an organization,  
               or a member or employee of an organization, has the primary  
               purpose of soliciting signatures on an initiative petition,  
               the totality of the circumstances, as defined, shall be  
               considered.

                 Provide that signatures solicited by registered voters  
               of, or employees of a political party or political party  
               committee, who receive money or other valuable  
               consideration from the political party or political party  
               committee for soliciting signatures on an initiative  
               petition do not count toward satisfying the 15 percent  
               requirement.

                 Provide that signatures solicited through direct mail do  
               not count towards the number of signatures needed to  
               satisfy the 15 percent requirement if the person soliciting  








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               the signatures through direct mail, or any other person who  
               organizes, pays for, or arranges for the direct mail,  
               receives money or other valuable consideration primarily  
               for the purpose of soliciting signatures of electors,  
               unless the person is an employee or member of a nonprofit  
               organization as described above.

                 Provides that this provision not preclude an  
               organization that has a primary purpose other than  
               soliciting signatures on initiative petitions from  
               soliciting signatures from the organization's members  
               through direct mail and relying on those signatures for  
               purposes of satisfying the 15 percent requirement.

                 Provide that a petition that contains a "volunteer's"  
               declaration shall be prima facie evidence that the  
               signatures thereon satisfy the 15 percent requirement.

                 Provide that nominal benefits other than money, such as  
               food, transportation or lodging, do not preclude that  
               individual from soliciting signatures toward the 15 percent  
               requirement.

                 Provide for purposes of verifying signatures under  
               existing law and the procedures set forth by SOS, if the  
               signature of a qualified voter appears once on a petition  
               or section of a petition submitted to satisfy the 15  
               percent requirement, and the same voter's signature appears  
               on a petition or section of a petition that does not, the  
               qualified voter's signature shall only be counted once and  
               shall be counted towards satisfying the 15 percent  
               requirement.

                 Require the circulating title prepared by the Attorney  
               General (AG) be in 18-point roman boldface type, and placed  
               in the one-inch space across the top of the first page on  
               each section of the petition.

                 Require a petition for a proposed initiative measure  
               that is circulated by a volunteer, be printed on white  
               paper in a contrasting color ink, and requires a petition  
               for a proposed initiative measure that is circulated by a  
               paid circulator be printed on paper of a color other than  
               white in a contrasting color ink. 








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                 Require a petition for a proposed initiative measure  
               that is circulated by a paid circulator, to include the  
               following statement immediately prior to the portion of the  
               petition for voters' signatures, printed names, and  
               residence addresses, printed in 12-point boldface type:

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

               Provides in addition to the information required in the  
               existing declaration of a circulator, a volunteer  
               circulator must declare all of the following: (1) the  
               person does not receive money or other valuable  
               consideration for soliciting signatures of electors, and  
               (2) to the best of his or her knowledge, the signatures on  
               the petition sections circulated by him or her should be  
               counted towards the 15% requirement.

                 Provide that an initiative petition section is invalid  
               if the signatures are solicited and submitted by a person  
               who intentionally engages in fraud, misrepresentation, or  
               any other improper signature-gathering behavior, or by a  
               person who falsely claims to have not received money or  
               other valuable consideration for the specific purpose of  
               soliciting signatures of electors as defined.

                 Permit SOS, the AG, a district attorney, a city attorney  
               of a city with a population greater than 750,000, or any  
               elector to enforce this provision by a civil action in  
               which the plaintiff has the burden of showing a violation  
               by clear and convincing evidence.  The signatures on a  
               petition section shall be invalidated only upon a showing,  
               by clear and convincing evidence, that the person who  
               solicited or obtained the signatures did so through  
               intentional fraud, misrepresentation, or other illegal  
               conduct, or that the person falsely claimed to have not  
               received money or other valuable consideration for the  
               specific purpose of soliciting signatures of electors.  Any  
               civil action brought pursuant to a violation shall have  
               priority over all other civil matters.

                 Prohibit a petition section from being invalidated after  








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               the SOS has certified that the measure has qualified for  
               the ballot.

                 Require that if an elections official is notified of or  
               discovers any illegal conduct of a person circulating a  
               petition, he or she must notify the SOS immediately but  
               does not permit the local elections official to refuse to  
               examine or to stop the examination of the petition or  
               petition sections.

                 Provide local election officials with two additional  
               days beyond the current eight day requirement to determine  
               the total number of signatures affixed to a petition, and  
               in the case of an initiative petition, the total number of  
               signatures submitted to satisfy the 15 percent requirement.  
                Also provides election officials with an additional five  
               days beyond the current 30 day requirement to determine  
               that a petition has received a sufficient number of  
               qualified voter's signatures and signatures that satisfy  
               the 15 percent requirement.

                 Require SOS to adopt emergency regulations pursuant to  
               the provisions of this bill. 

                 Apply to initiatives that receive a title and summary  
               from the Attorney General after January 1, 2017. 

                 Provide that specified provisions of the bill become  
               operative only if the SOS certifies that the state has a  
               statewide voter registration database that complies with  
               the requirements of the federal Help America Vote Act of  
               2002.


          Related Legislation: AB 857 (Fong of 2013) was substantially  
          similar to this bill, but was vetoed by the Governor.  

          Staff Comments: Current law requires that in order for a measure  
          to qualify to be placed before the voters in California on a  
          statewide ballot, there must be sufficient signatures as  
          follows: (1) an initiative measure must have at least 5 percent  
          of the total votes cast for the office of Governor during the  
          preceding gubernatorial election, and (2) a proposed  
          constitutional amendment must have at least 8 percent of the  








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          total votes cast for the last election for Governor.

          This bill would prohibit an initiative from qualifying for the  
          statewide ballot based solely on signatures collected by  
          individuals paid to circulate that petition.

          Under current law, if the amount of raw signatures submitted  
          statewide totals less than 100 percent of the required amount of  
          signatures to qualify the initiative measure for the ballot,  
          then the initiative would fail to qualify. Under this bill, an  
          initiative measure could also fail if the proponents failed to  
          collect 15 percent of the required amount of signatures using  
          unpaid volunteers (or non-profit employees or members paid to  
          collect signatures), regardless of whether the total amount of  
          signatures collected equaled or exceeded 100 percent of the  
          required amount of signatures.

          SOS estimates a one-time cost of $55,000 to develop regulations  
          related to volunteer signature gatherers.




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