BILL ANALYSIS Ó SB 1094 Page 1 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 Page 2 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." SB 1094 Page 3 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. SB 1094 Page 4 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. SB 1094 Page 5 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. SB 1094 Page 6 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