BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1094


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          SENATE THIRD READING


          SB  
          1094 (Hernandez)


          As Amended  August 19, 2016


          Majority vote


          SENATE VOTE:  25-14


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Elections       |5-2  |Weber, Gordon, Low,    |Harper, Travis Allen |
          |                |     |Mullin, Nazarian       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |14-6 |Gonzalez, Bloom,       |Bigelow, Chang,      |
          |                |     |Bonilla, Bonta,        |Gallagher, Jones,    |
          |                |     |Calderon, Daly,        |Obernolte, Wagner    |
          |                |     |Eggman, Eduardo        |                     |
          |                |     |Garcia, Holden, Quirk, |                     |
          |                |     |Santiago, Weber, Wood, |                     |
          |                |     |McCarty                |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
           -------------------------------------------------------------------- 


          SUMMARY:  Makes numerous significant changes to provisions of  








                                                                    SB 1094


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          state law governing state initiatives.  Specifically, this bill:


          1)Requires at least 5% of the signatures collected to qualify a  
            proposed state initiative measure for the ballot to be  
            collected by individuals who did not receive money or other  
            valuable consideration exclusively or primarily for the  
            specific purpose of soliciting signatures of electors on the  
            petition, as specified ("5% requirement").


             a)   Provides that signatures qualify toward meeting the 5%  
               requirement if they are collected by an employee or member  
               of a non-profit organization (except a political party), as  
               specified, who receives money or other valuable  
               consideration from the organization and as part of that  
               employment or membership solicits signatures, as specified.  
                
             b)   Provides that signatures solicited through direct mail  
               do not count towards the 5% requirement unless every person  
               who organizes, pays, or arranges for the direct mail, is  
               eligible to solicit signatures that qualify toward meeting  
               the 5% requirement, or an organization that has a primary  
               purpose other than soliciting signatures on initiative  
               petitions is soliciting signatures from its members through  
               direct mail.


          1)Requires a petition for a proposed state initiative measure  
            that is circulated by a person such that it will qualify  
            toward meeting the 5% requirement to be printed on white paper  
            in a contrasting color ink and to include the following notice  
            printed in 12-point boldface type immediately prior to the  
            portion of the petition for voters' signatures:
          "NOTICE TO THE PUBLIC:  THIS PETITION IS BEING CIRCULATED BY A  
          VOLUNTEER OR AN EMPLOYEE OF A NONPROFIT ORGANIZATION.  YOU ARE  
          ENCOURAGED TO READ THE CONTENTS OF THIS PETITION BEFORE  
          SIGNING."









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          2)Requires a petition for a proposed state initiative measure  
            that is circulated by a person such that it will not qualify  
            toward meeting the 5% requirement to be printed on paper of a  
            color other than white in a contrasting color ink and to  
            include the following notice printed in 12-point boldface type  
            immediately prior to the portion of the petition for voters'  
            signatures:
          "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."


          3)Requires a person who solicits signatures on a petition that  
            qualify toward meeting the 5% requirement to sign an  
            affidavit, as specified. 
          4)Makes corresponding changes to the process for elections  
            officials to verify signatures submitted on a state initiative  
            petition.  Requires the Secretary of State (SOS) to adopt  
            regulations consistent with these provisions and permits the  
            initial regulations to be adopted as emergency regulations.


          5)Provides that the signatures on a state initiative petition  
            section are invalid if they are solicited and submitted by a  
            person who engages in intentional fraud, misrepresentation, or  
            other illegal conduct concerning the circulation of the  
            petition, as specified.  Provides that the SOS, the Attorney  
            General (AG), any district attorney, or any city attorney of a  
            city, may enforce this provision by a civil action in which  
            the plaintiff has the burden of showing a violation by clear  
            and convincing evidence.  Prohibits a petition section from  
            being invalidated after the SOS has certified that the measure  
            has qualified for the ballot.  


          6)Provides that the provisions of this bill do not apply to any  
            initiative measure for which the AG issues a circulating title  
            and summary before January 1, 2017.








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          7)Makes various findings and declarations about the initiative  
            process and the influence that special interests and paid  
            circulators have on that process.


          8)Makes other clarifying, corresponding, and technical changes.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)County elections officials indicate that an initiative will  
            have separate volunteer and paid circulator-gathered  
            petitions, and thus will be treated as two separate petitions  
            for their signature-checking systems in order to meet the  
            minimum threshold requirement of volunteer-gathered  
            signatures.  One county estimated this would increase its  
            verification costs by about 40% for each initiative.  (The  
            county did note, however, that if? volunteer-generated  
            petitions did not have sufficient signatures, the? paid  
            signature-gathering section would not have to be verified,  
            thus resulting in some cost savings.)  Depending on the number  
            of statewide initiatives submitted for verification,  
            additional statewide reimbursable costs could be up to several  
            hundred thousand dollars per general election. 


          2)One-time General Fund costs of $55,000 for the SOS to adopt  
            regulations. 


          3)Due to the Constitutional issues raised by this bill, there is  
            a strong potential that the state could incur significant  
            legal costs. 










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          COMMENTS:  According to the author, "[The] initiative system was  
          established as a means of giving power back to the California  
          voters.  In recent years, however, this process has become  
          increasingly dominated by corporations and wealthy individuals  
          pushing narrower agendas.  For numerous measures, volunteers  
          and/or grassroots support are nowhere to be found... In many  
          instances, nearly every signature is gathered by paid  
          circulators, earning a fixed amount per signature, with little  
          or no interest in the issue at hand.  This may lead to  
          abbreviated, simplistic explanations of the initiative, or in  
          the worst cases, fraud and deception on the part of the  
          circulator.  Currently, initiatives can qualify using solely  
          paid circulators, making volunteers and genuine grassroots  
          support for causes unnecessary, thus granting wealthy  
          individuals and corporations unfettered access to the ballot.   
          In such a system, money, not the quality or wisdom of a proposed  
          policy, is the deciding factor when qualifying a measure for the  
          ballot? Allowing monied interests unchecked access to the  
          ballots often results in long and confusing ballots, which can  
          discourage voters and be a contributing factor to record low  
          turnouts.  In fact, lack of interest is a main reason cited for  
          not voting.  Requiring broad-based support for ballot measures  
          will take steps to reignite public interest in the voting  
          process, while drastically reducing the number of issues a voter  
          must be informed on.  Passing SB 1094 will be the first step to  
          returning our initiative process to the people."


          Under the provisions of this bill, in order for a state  
          initiative measure to qualify for the ballot, at least 5% of the  
          signatures gathered on the petition for that measure would have  
          to be collected on petition sections that were circulated 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.  This "5% requirement" does not apply to state  
          referendum or recall petitions, nor does it apply to local  
          initiatives, referenda, or recalls.









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          In 1988, the United States (U.S.) Supreme Court ruled that a  
          Colorado prohibition against the use of paid circulators for  
          initiative petitions violated the First Amendment's guarantee of  
          free speech.  Writing for a unanimous court, Justice Stevens  
          noted that "[t]he State's interest in protecting the integrity  
          of the initiative process does not justify the prohibition  
          because the State has failed to demonstrate that it is necessary  
          to burden appellees' ability to communicate their message in  
          order to meet its concerns."  Meyer v. Grant (1988), 486 U.S.  
          414.  It could be argued that the 5% requirement imposed by this  
          bill could be susceptible to a court challenge in light of the  
          United States Supreme Court's ruling in Meyer.  However, the 5%  
          requirement in this bill is distinguishable from the law struck  
          down in Meyer and thus may be able to withstand constitutional  
          scrutiny.  


          Please see the policy committee analysis for a full discussion  
          of this bill.




          Analysis Prepared by:                                             
                          Nichole Becker / E. & R. / (916) 319-2094  FN:  
          0004597