BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2946
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          ASSEMBLY THIRD READING
          AB 2946 (Leno)
          As Amended May 30, 2006
          Majority vote 

           ELECTIONS           4-2         APPROPRIATIONS                  
                                             (vote not available)
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          |Ayes:|Umberg, Karnette, Leno,   |     |                          |
          |     |Levine                    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Wyland, Villines          |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Makes various significant and substantive changes to  
          the initiative process.  Specifically,  this bill  :  

          1)Requires that an initiative, referendum, or recall petition  
            circulated by a paid circulator contain the phrase "PAID  
            CIRCULATOR" in 24-point type, followed by the following  
            language in 12-point type:  

               "NOTICE TO THE PUBLIC:  THIS PETITION IS BEING CIRCULATED  
               BY A PERSON WHO IS BEING PAID TO COLLECT SIGNATURES."

          2)Requires that an initiative, referendum, or recall petition  
            circulated by a volunteer contain the phrase "VOLUNTEER  
            CIRCULATOR" in 24-point type, followed by the following  
            language in 12-point type:

               "NOTICE TO THE PUBLIC:  THIS PETITION IS BEING CIRCULATED  
               BY A VOLUNTEER."

          3)Defines "paid circulator," for the purposes of this bill, as a  
            person who is compensated in any manner for collecting  
            petition signatures to qualify a state or local initiative,  
            referendum, or recall measure.

          4)Defines "volunteer," for the purposes of this bill, as a  
            person who is not a paid circulator.

          5)Makes it a misdemeanor for a person to pay or receive money or  








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            any other thing of value based on the number of signatures  
            obtained on a state or local initiative, referendum, or recall  
            petition, based on the number of voter registration affidavits  
            obtained or completed, or based on the number of absentee  
            ballot applications obtained or completed.  Provides that this  
            prohibition shall not be construed to prohibit payment for  
            signature gathering, voter registration, or absentee ballot  
            application distribution that is not based on the number of  
            signatures obtained or the number of affidavits or  
            applications obtained or completed.

          6)Provides that any signatures collected in violation of any  
            provision of state law relating to the circulation of a  
            statewide initiative, referendum, or recall petition shall be  
            invalid and shall not count towards qualification of the  
            initiative, referendum or recall.  Prohibits the doctrine of  
            substantial compliance from being used by any elections  
            official or court to excuse a violation of state law relating  
            to the circulation of a statewide initiative, referendum, or  
            recall petition, except for non-substantive grammatical and  
            spelling errors.

          7)Permits any state initiative, referendum, or recall proponent  
            to submit a petition to the Attorney General (AG) for approval  
            prior to circulation of the petition.  Requires the AG to  
            notify the proponent within 10 days of whether or not the  
            petition complies with the requirements of the Elections Code.  
             Provides that if the AG determines that the petition does not  
            comply, he or she shall notify the proponents as to why the  
            petition does not comply and allow the proponent to submit a  
            corrected petition for approval.

          8)Requires a state or local initiative, referendum, or recall  
            petition that is circulated by a paid circulator who is paid  
            by a committee to include, in 12-point type at the top of the  
            petition, a disclosure statement identifying the names of the  
            persons from whom the committee received the three largest  
            cumulative contributions.  Provides that this requirement may  
            also be satisfied by a separate disclosure statement on the  
            top of the petition that is readily visible to the voter.   
            Requires the disclosure statement to include, in addition to  
            the name of the person, the nature of the person's business  
            interests.  Requires, for committees, the disclosure statement  
            to identify the persons and the nature of their business  








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            interests from whom the committee received the two largest  
            cumulative contributions in excess of $10,000.  Requires the  
            disclosure statement to be updated within 14 days of any  
            change in the three largest cumulative contributors.  Provides  
            that if more than three donors meet the disclosure threshold  
            at identical contribution levels, the three highest donations  
            shall be disclosed according to chronological sequence  
            beginning with the most recent contribution.  Requires a  
            committee that employs one or more paid circulators to  
            circulate a state initiative, referendum, or recall petition  
            to submit the disclosure statement and any updates to the  
            statement to the Secretary of State (SOS) for inclusion on the  
            SOS's Internet Web site.

          9)Requires any committee that employs one or more paid  
            circulators to circulate an initiative, referendum, or recall  
            petition to print on the petition its name and to identify  
            itself using a name or phrase that clearly identifies the  
            economic or other special interest of its major donors of  
            $50,000 or more.  Provides that if the major donors share a  
            common employer, the identity of the employer shall be  
            disclosed.

          10)Defines "cumulative contributions," for the purposes of this  
            bill, as the cumulative amount of contributions received by a  
            committee beginning 12 months prior to the date the committee  
            made its first expenditure to qualify or support the measure.

          11)Defines "nature of the individual's business interest," for  
            the purposes of this bill, as a term or words which accurately  
            describe the person's principle business activity, source of  
            income or activity.

          12)Provides that a local elections official shall not be  
            required to verify the accuracy of any of the information  
            required to be disclosed on the petition, and shall not be  
            required to re-approve any petition that is updated to reflect  
            a change in the largest cumulative contributors.

          13)Provides that if a proponent of a statewide initiative,  
            referendum, or recall petition has knowledge of a violation of  
            any provision of state law relating to the circulation of a  
            statewide initiative or referendum petition committed by a  
            person obtaining signatures on the proponent's petition, the  








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            violation by the person obtaining signatures shall be  
            conclusively considered a violation by the proponent.   
            Provides that a proponent shall not be liable if he or she  
            notifies the SOS within one business day after the proponent  
            obtains knowledge of a potential violation.  Provides that if  
            a statewide initiative, referendum, or recall petition has  
            more than one proponent, no more than one proponent shall be  
            held liable.  Provides that this liability does not apply to a  
            violation of law that is subject to a criminal penalty.

          14)Requires the ballot title and summary prepared by the AG to  
            be stated in complete sentences and written such that the  
            average voter will easily understand the purpose of the  
            measure.

          15)Requires the ballot label prepared by the AG to be stated in  
            complete sentences and written such that the average voter  
            will easily understand the purpose of the measure.

           FISCAL EFFECT  :  According to an Assembly Appropriations  
          Committee, 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  :  According to the author, "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 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  








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          have signed a petition funded by entities they may not agree  
          with."  
           
          Please see the policy committee analysis for a full discussion  
          of this bill.
           

          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 



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