BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2946
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          Date of Hearing:   May 24, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 2946 (Leno) - As Amended:  April 26, 2006 

          Policy Committee:                              ElectionsVote:4-2

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

           SUMMARY  

          This bill places several new requirements on the  
          signature-gathering process for initiatives, referenda, and  
          recalls. Specifically, this bill:

          1)Requires a petition for a state or local initiative to  
            identify whether the petition is being circulated by a paid  
            signature gatherer or a volunteer. 

          2)Makes it a misdemeanor for anyone to pay or be paid based on  
            the number of signatures obtained on a state or local  
            initiative, referendum, or recall petition or the number of  
            affidavits or applications obtained when assisting in a voter  
            registration or absentee voter ballot applications,  
            respectively. 

          3)Makes any signature obtained in violation of the Elections  
            Code invalid. 

          4)Permits any state initiative or referendum proponent to submit  
            a petition to the Attorney General (AG) for approval prior to  
            circulation of the petition, and requires the AG to notify the  
            proponent within 10 days as to whether the petition complies  
            with the requirements of the Elections Code, and, if not, to  
            notify the proponents why it does not and to allow a corrected  
            petition to be submitted for approval. 

          5)Requires a petition circulated by a circulator paid by a  
            campaign committee to include: 

             a)   A statement identifying the committee's three largest  
               cumulative contributions, to be updated within 14 days of  








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               any changes in the three largest contributors. The  
               committee must also submit this statement, and any updates,  
               to the Secretary of State (SOS), who must post the  
               disclosure statements on their website. 

             b)   The committee's name, using a phrase that clearly  
               identifies the economic or other special interest of its  
               donors of $50,000 or more. 

          6)Requires the ballot title and summary and the ballot label  
            prepared by the AG to be stated in complete sentences and be  
            understandable to the average voter. 

          7)Establishes that, if the proponent of a statewide initiative  
            or recall petition has knowledge of a violation by a  
            circulator of any state law regarding circulation of the  
            proponent's petition, it shall be considered a violation by  
            the proponent unless the proponent notifies the SOS within one  
            business day of obtaining knowledge of the violation.

           FISCAL EFFECT  

          Minor to moderate costs for the SOS to post petition statements  
          on its website and for the AG to review petitions prior to  
          circulation.

           COMMENTS  

           1)Purpose  . In support of this bill, sponsored by the California  
            Labor Federation, the author states, "The initiative process  
            is in desperate need of reform. Recent times have seen an  
            increase in the amount and complexity of petitions being  
            circulated throughout the state. The public is oftentimes  
            asked to sign petitions to qualify initiatives they know  
            nothing about. Frequently, signature gatherers are paid per  
            signature. This creates an incentive to lie or mislead the  
            public as to what they are really signing. Furthermore, when  
            signature gatherers are prosecuted for violations of the law,  
            those who paid them, trained them, and encouraged them to use  
            deception and fraud are not held responsible.

            Many signature gatherers are paid; some are volunteers.  
            However, nothing in current law requires a signature gatherer  
            to disclose which category he or she falls into. This  
            information proves useful when trying to determine the  








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            signature gatherer's motivation and understanding of an  
            initiative. Additionally, when a voter is asked to sign a  
            petition, he or she cannot see which individuals or  
            organizations are funding the initiative. This leaves the  
            voter vulnerable to a situation in which they have signed a  
            petition funded by entities they may not agree with."

           2)Related Legislation  . SB 1047 (Bowen) prohibits payment on a  
            per-piece or per-signature basis for individuals gathering  
            signatures on petitions or registering voters. SB 1047 is  
            awaiting referral by the Assembly Rules Committee.

            SB 1598 (Bowen) requires an initiative, referendum, or recall  
            petition to indicate whether it is being circulated by a paid  
            circulator or volunteer and to include a statement identifying  
            the five largest contributors in support of the measure.  SB  
            1598 is pending in the Senate Appropriations Committee.

            AB 2460 (Evans), also on today's committee agenda, requires  
            the SOS to approve an initiative petition before that petition  
            can be circulated, and provides that no signatures on an  
            initiative petition section shall be counted unless the  
            section is identical to the petition approved by the SOS.

           3)Prior Legislation  . SB 469 (Bowen) of 2005, which was vetoed by  
            the Governor, would have required an initiative, referendum,  
            or recall petition to indicate whether it is being circulated  
            by a paid circulator or volunteer and to include a statement  
            identifying the five largest contributors in support of the  
            measure.  In his veto message to SB 469, Governor  
            Schwarzenegger indicated that he believed the bill "attacks  
            the initiative process and makes it more difficult for the  
            people of California to gather signatures and qualify measures  
            for the ballot."

            AB 738 (Nation) of 2005, which was vetoed by the Governor,  
            would have required an individual who receives compensation to  
            circulate an initiative, referendum, or recall petition to  
            wear a badge identifying himself or herself as a paid  
            signature gatherer.  In his veto message to AB 738, Governor  
            Schwarzenegger noted that existing law requires petitions to  
            contain a notice that the petition may be circulated by a paid  
            signature gatherer or a volunteer, and so he saw no compelling  
            reason to sign the bill.









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            SB 725 (Scott) of 2001 would have required an initiative,  
            referendum, or recall petition to reflect whether it is being  
            circulated by a person paid to collect signatures or by a  
            volunteer.  SB 725 was vetoed by Governor Davis, who argued  
            that the bill was unnecessary because petitions are already  
            required to inform voters that the circulator may be a  
            volunteer or may be paid, and that the voter has the right to  
            ask.

            SB 725 was similar to SB 1219 (Schiff) of 1999 and SB 1979  
            (Schiff) of 1998, which were vetoed by Governor Davis and  
            Governor Wilson, respectively.

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