BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1094|
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                                        VETO 


          Bill No:  SB 1094
          Author:   Hernandez (D), et al.
          Amended:  8/19/16  
          Vote:     21 

           SENATE ELECTIONS & C.A. COMMITTEE:  4-1, 4/19/16
           AYES:  Allen, Hancock, Hertzberg, Liu
           NOES:  Anderson

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/27/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           SENATE FLOOR:  25-14, 6/1/16
           AYES:  Allen, Beall, Block, De León, Glazer, Hall, Hancock,  
            Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva,  
            Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth,  
            Wieckowski, Wolk
           NOES:  Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,  
            Galgiani, Huff, Moorlach, Morrell, Nguyen, Nielsen, Stone,  
            Vidak
           NO VOTE RECORDED:  Runner

           SENATE FLOOR:  25-13, 8/26/16
           AYES:  Allen, Beall, Block, De León, Glazer, Hall, Hancock,  
            Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva,  
            Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth,  
            Wieckowski, Wolk
           NOES:  Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,  
            Huff, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak
           NO VOTE RECORDED:  Galgiani

           ASSEMBLY FLOOR:  52-28, 8/24/16 - See last page for vote

           SUBJECT:   Initiatives:  petition circulators








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          SOURCE:    California Labor Federation 
                     California Professional Firefighters 




          DIGEST:   This bill makes numerous significant changes to  
          provisions of state law governing initiatives.

          ANALYSIS:   


          Existing law:


           1) Allows electors to propose statutes and amendments to the  
             Constitution and to adopt or reject them through the  
             initiative process.


           2) Requires every state or local initiative petition contain a  
             notice alerting voters that the petition may be circulated by  
             a paid signature gatherer or a volunteer and that voters have  
             the right to ask if a petition circulator is paid or is a  
             volunteer.


           3) Provides instruction on how to file petitions and provides  
             elections officials with instructions for the examination of  
             signatures, as well as procedures for the certification and  
             full check of petition signatures.


           4) Establishes penalties for fraudulent activity related to  
             signature gathering.


          This bill:










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           1) Requires at least 5% 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.


           2) Provides that a person who is an employee or member 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 5% 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.


           3) Defines "member" for this purpose to mean any of the  
             following:


              a)    A person who, pursuant to a specific provision of an  
                organization's articles of incorporation or bylaws, has  
                the right to vote directly or indirectly for the election  
                of a director or directors, or an officer or officers, or  
                on a disposition of all or substantially all of the assets  
                of the organization, or on a merger or a dissolution.

              b)    A person who is designated in an organization's  
                articles of incorporation or bylaws as a member and,  
                pursuant to a specific provision of the articles of  
                incorporation or bylaws, has the right to vote on changes  
                to the articles of incorporation or bylaws.

              c)    A person who pays or has paid membership dues in an  
                amount predetermined by the organization, provided the  
                organization is tax exempt under Section 501(c) of the  
                Internal Revenue Code.








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              d)    A member of a union.  Defined as a member of any  
                national or international union of which the local union  
                is a part and of any federation with which the local,  
                national, or international union is affiliated.

              e)    For these purposes, a person is not a member of a  
                nonprofit organization solely by virtue of being on a  
                mailing or contact list of the organization.


           4) Requires for this purpose, 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.


           5) Provides 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 5% requirement.


           6) Provides that signatures solicited through direct mail do  
             not count towards the number of signatures needed to satisfy  
             the 5% requirement if the person soliciting 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.


           7) 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 5%  








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             requirement.


           8) Provides that a petition that contains a "volunteer's"  
             declaration shall be prima facie evidence that the signatures  
             thereon satisfy the 5% requirement.


           9) Provides that nominal benefits other than money, such as  
             food, transportation or lodging, do not preclude that  
             individual from soliciting signatures toward the 5%  
             requirement.


           10)Provides for purposes of verifying signatures under existing  
             law and the procedures set forth by the Secretary of State  
             (SOS), if the signature of a qualified voter appears once on  
             a petition or section of a petition submitted to satisfy the  
             5% 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 5% requirement.


           11)Requires 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.


           12)Requires 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. 


           13)Requires 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  








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             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."


           14)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."


           15)Provides in addition to the information required in the  
             existing declaration of a circulator, a volunteer circulator  
             must declare all of the following:


              a)    The person does not receive money or other valuable  
                consideration for soliciting signatures of electors.

              b)    To the best of his or her knowledge, the signatures on  
                the petition sections circulated by him or her should be  
                counted towards the 5% requirement.


           16)Provides 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.








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           17)Allows the 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.


           18)Prohibits a petition section from being invalidated after  
             the SOS has certified that the measure has qualified for the  
             ballot.


           19)Requires 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.


           20)Makes multiple corresponding changes to the process for  
             elections officials to verify signatures submitted on a state  
             initiative petition.


           21)Provides 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 5% requirement.  Also  
             provides election officials with an additional five days  
             beyond the current 30 day requirement to determine that a  








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             petition has received a sufficient number of qualified  
             voter's signatures and signatures that satisfy the 5%  
             requirement.


           22)Requires the SOS to adopt emergency regulations pursuant to  
             the provisions of this bill.


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


           24)Provides that the provisions of this bill do not apply to an  
             initiative petition for which the AG issued a circulating  
             title and summary before January 1, 2017.


           25)Provides 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 (52  
             U.S.C. Sec. 20901 et seq.).


           26)Makes other minor, corresponding, clarifying, and technical  
             changes.




          Background


          The initiative is the power of the people of California to  
          propose statutes 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  








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          successfully satisfy the requirements prescribed by law.


          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  








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          referendum or recall petitions, nor does it apply to local  
          initiatives, referenda, or recalls.


          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  
          U.S. 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. 


           NOTE:  Please refer to the policy committee analysis for a full  
                 discussion of this bill.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Assembly Appropriations Committee, 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 the 10% volunteer-generated petitions did not have  
          sufficient signatures, the 90% 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  








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          costs could be up to several hundred thousand dollars per  
          general election.  One-time General Fund costs of $55,000 for  
          the SOS to adopt regulations.  Due to constitutional issues  
          raised by this bill, there is a strong potential that the state  
          could incur significant legal costs.




          SUPPORT:   (Verified10/13/16)


          California Labor Federation (co-source) 
          California Professional Firefighters (co-source)
          Secretary of State Alex Padilla
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Faculty Association
          California School Employees Association 
          California State Council of the Service Employees International  
          Union
          Courage Campaign
          Equality California


          OPPOSITION:   (Verified10/13/16)


           Howard Jarvis Taxpayers Association


           GOVERNOR'S VETO MESSAGE:
               
               I am returning Senate Bill 1094 without my signature.

               This bill requires that at least five percent of the  
               signatures collected on state initiative petitions be  
               obtained by volunteer circulators.

               This bill is virtually identical to AB 857, which I vetoed  
               in 2013. Lowering the percentage from 10 percent to 5  
               percent does not change my view that this measure will not  








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               keep out special interests or favor volunteer signature  
               gathering.


          ASSEMBLY FLOOR:  52-28, 8/24/16
          AYES:  Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez,  
            Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood, Rendon
          NOES:  Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Chávez, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper,  
            Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes,  
            Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner,  
            Waldron, Wilk


          Prepared by:Frances Tibon Estoista / E. & C.A. / (916) 651-4106
          10/17/16 15:24:33


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