BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2946|
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                                 THIRD READING


          Bill No:  AB 2946
          Author:   Leno (D), et al
          Amended:  8/7/06 in Senate
          Vote:     21

           
           SENATE ELEC., REAP. & CONST. AMEND. COMM.  :  3-1, 6/28/06
          AYES:  Bowen, Murray, Romero
          NOES:  Battin
          NO VOTE RECORDED:  Poochigian

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 8/17/06
          AYES:  Murray, Alarcon, Alquist, Escutia, Florez, Ortiz,  
            Romero, Torlakson
          NOES:  Aanestad, Ashburn, Battin, Dutton, Poochigian

           ASSEMBLY FLOOR  :  48-32, 5/31/06 - See last page for vote


           SUBJECT  :    Initiative petitions

           SOURCE  :     California Labor Federation, AFL-CIO
                      Service Employees International Union


           DIGEST  :    This bill makes several changes to the  
          signature-gathering process for initiatives, referenda, and  
          recalls.

           ANALYSIS  :    

           Existing Law
           
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           1.Requires any person who accepts money or other valuable  
            consideration in return for assisting with voter  
            registration to sign and affix on the voter registration  
            form his/her full name, telephone number, address, and  
            the name and phone number of the person, company, or  
            organization, if any, that agrees to pay money or  
            valuable consideration for the completed affidavit of  
            registration.

          This bill:

           1.Makes it a misdemeanor for a person to pay or receive  
            money or 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.

           2.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.

           3.Prohibits the doctrine of substantial compliance from  
            being used by any elections official or court to excuse a  
            violation of any provision of state law relating to the  
            circulation of a statewide initiative, referendum, or  
            recall petition, except for non-substantive grammatical  
            and spelling errors.

           4.Permits any statewide initiative, referendum, or recall  
            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 of whether or not the petition complies with the  
            requirements of the Elections Code, and further provides  
            that if the AG determines the petition does not comply,  
            he or she shall notify the proponent as to why the  
            petition does not comply and allow the proponent to  
            submit a corrected petition for approval.

           5.Requires the ballot title, summary, and label prepared  







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            by the AG to be stated in complete sentences and written  
            such that the average voter will easily understand the  
            purpose of this bill.

           6.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 violation by the person  
            obtaining signatures shall be conclusively considered a  
            violation by the proponent.

           7.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.

           8.Provides that if a statewide initiative, referendum, or  
            recall petition has more than one proponent, each  
            proponent with knowledge may be held liable, though this  
            liability does not apply to a violation of law that is  
            subject to a criminal penalty.

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2006-07     2007-08     
           2008-09   Fund  

          Enforcement                                             
          -------potentially up to $200-------                         
            General

          Exact costs to the Attorney General's office will be  
          dependent on the amount of time spent on investigative  
          work, discovery actions, interviews, trial work, and the  
          appeals process.

           SUPPORT  :   (Verified  8/18/06)








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          California Labor Federation, AFL-CIO (co-source)
          Service Employees International Union (co-source)
          AFT College Staff Guild, Local 1521A
          AFT Guild, Local 1931
          AFSCME
          Art Directors Guild & Scenic, Title & Graphic Artists IATSE
          Local 800
          Bakers' Union, Local No. 85
          Butte Glenn Central Labor Council
          California Common Cause
          California Conference Board of the Amalgamated Transit  
          Union
          California Conference of Machinists
          California Federation of Teachers
          California Professional Firefighters
          California School Employees Association, AFL-CIO
          California Teachers Association
          Central Labor Council of Alameda County, AFL-CIO
          UNITE HERE Local 49
          Communications Workers of America, Local 9333, 9415, 9510
          Engineers & Scientists of California
          Foundation for Taxpayer and Consumer Rights
          General Teamsters, Warehousemen & Helpers Union, Local 890
          International Association of Machinists Local Lodge 1782
          I.A.T.S.E. Local 80
          I.A.T.S.E. Local 728
          IBEW, Local Union 9, 18, 45, 302, 441, 595, 2295
          International Association of Machinists & Aerospace  
          Workers,
          District Lodge 725
          Ironworkers Local 155, 377, 433
          Kern County Fire Fighters
          Laborers' International Union of North America
          Local Union 250
          Long Beach Fire Fighters, Local 372
          Musicians Union Local 6
          Napa-Solano Building & Construction Trades Council
          Northern California District Council - ILWU
          OP&CMIA Plasterers' Local Union 200
          OPEIU, Local 3
          Plumber's Local 78
          Plumbers & Pipefitters Local Union 230
          Plumbers & Steamfitters Local Union 398, 484
          Plumbers, Steamfitters & Refrigeration Fitters Local Union  







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          467
          Professional & Technical Engineers, Local 21
          San Francisco Labor Council, AFL-CIO
          San Mateo County Building & Construction Trades Council
          Santa Clara County Fire Fighters
          Santa Rosa Fire Fighters, Local 1401
          Script Supervisors/Continuity & Allied Production  
          Specialists
          Guild, Local 871
          SEIU Local 1280
          Sheet Metal Workers' International Association Local
          Union 104, and 162
          Strategic Committee of Public Employees
          Studio Transportation Drivers Teamsters Local 399 
          Teamsters
          Teamsters Automotive, Industrial & Allied Workers Local 495
          Teamsters Local 228, 396, 601, 683, 853
          Transport Workers Union of America
          Transport Workers Union of America Local 250-A
          United Educators of San Francisco 
          UFCW Local 428, 1179, 1428, 1442
          United Administrators of San Francisco
          United Food & Commercial Workers Union
          Unite Here
          United Professional Fire Fighters of Contra Costa County  
          IAFF Local 1230
          United Steelworkers Local 418G
          Western States Council

           OPPOSITION  :    (Verified  8/18/06)

          California Chamber of Commerce

          Note:  The following were listed as opposed in their  
          letter:

          American Insurance Association
          Associated General Contractors of California
          Association of California Insurance Companies
          California Apartment Association
          California Beer & Beverage Distributors
          California Building Industry Association
          California Business Roundtable
          California Grocers Association







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          California Hotel & Lodging Association
          California Independent Petroleum Association
          California Restaurant Association
          California Retailers Association
          California Taxpayers Association
          Consulting Engineers and Land Surveyors of California
          Personal Insurance Federation of California

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "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 those to use deception  
          and fraud are not held responsible.  Proponents indicate  
          this bill implements some of the reforms already in place  
          in Oregon.  States the around the country have concluded  
          that the initiative process must be reformed.  Several  
          states have banned the practice of paying signature  
          gatherers by the signature gatherers to disclose whether  
          they are paid or volunteer.  

          Oregon has enacted among the most comprehensive initiative  
          reforms.  In 2001, the Oregon Legislature passed SB 216,  
          which penalized signature gatherers for knowingly making  
          false statements or soliciting signatures from those  
          unqualified to sign.  In addition, SB 216 extends liability  
          to the proponents of an initiative if they know their  
          signature gatherers have violated the law.  This bill was  
          signed in to law by the Governor in June 2001.  The  
          following year, Measure 26, a labor-backed initiative that  
          required signature gatherers to be paid by the hour rather  
          than by the signature garnered support from 75 percent of  
          voters.  In 2004, Measure 26 survived a First Amendment  
          challenge in federal court and in February 2006, it was  
          again upheld by the Ninth Circuit Court of Appeal.

           ARGUMENTS IN OPPOSITION  :    The Chamber of Commerce state,  
          "By outlawing payment for signature collection on a per  







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          signature basis, AB 2946 would make it prohibitively  
          expensive to do an initiative or a recall and next to  
          impossible to do a referendum.  Furthermore, it is unclear  
          how limiting the payment type for signatures will ensure  
          that the public will receive better information when  
          petitioners approach them.  Indeed, Ab 2946 is likely to  
          limit how far and wide this important election material is  
          is disseminated and even exclude certain areas as  
          petitioners attempt to reach as many California voters as  
          possible.  The current process serves as a check and  
          balance on government.  By making it harder to qualify  
          ballot measures you are denying Californians the right to  
          address grievances with government through initiatives,  
          referendums and recalls.  
           
           ASSEMBLY FLOOR  : 
          AYES:  Arambula, Baca, Bass, Berg, Bermudez, Calderon,  
            Canciamilla, Chan, Chavez, Chu, Cohn, Coto, De La Torre,  
            Dymally, Evans, Frommer, Goldberg, Hancock, Jerome  
            Horton, Jones, Karnette, Klehs, Koretz, Laird, Leno,  
            Levine, Lieber, Lieu, Liu, Matthews, Montanez, Mullin,  
            Nation, Nava, Negrete McLeod, Oropeza, Parra, Pavley,  
            Ridley-Thomas, Ruskin, Saldana, Salinas, Torrico, Umberg,  
            Vargas, Wolk, Yee, Nunez
          NOES:  Aghazarian, Benoit, Blakeslee, Bogh, Cogdill,  
            Daucher, DeVore, Emmerson, Garcia, Harman, Haynes,  
            Shirley Horton, Houston, Huff, Keene, La Malfa, La Suer,  
            Leslie, Maze, McCarthy, Mountjoy, Nakanishi, Niello,  
            Plescia, Richman, Sharon Runner, Spitzer, Strickland,  
            Tran, Villines, Walters, Wyland


          DLW:do  8/19/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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