BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 2946

                                                                  Page  1


          GOVERNOR'S VETO
          AB 2946 (Leno)
          As Amended August 23, 2006
          2/3 vote

           ----------------------------------------------------------------- 
          |ASSEMBLY:  |48-32|(May 31, 2006)  |SENATE: |21-13|(August 30,    |
          |           |     |                |        |     |2006)          |
           ----------------------------------------------------------------- 
           
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |47-30|(August 31,     |        |     |               |
          |           |     |2006)           |        |     |               |
           ----------------------------------------------------------------- 
           
           Original Committee Reference:    E. & R.

          SUMMARY  :  Prohibits the payment of an individual to collect  
          signatures on an initiative, referendum, or recall petition or  
          to register voters if that payment is on a per-signature or  
          per-registration basis.  Specifically,  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.  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.

          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.  Prohibits the doctrine of  
            substantial compliance from being used by any elections  










                                                                  AB 2946

                                                                  Page  2


            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.

          3)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.

          4)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, referendum, or recall petition committed  
            by a person obtaining signatures on the proponent's petition,  
            the proponent shall be subject to a civil penalty in an amount  
            not exceeding the fine applicable to the violation committed  
            by the circulator.  Provides that a proponent shall not be  
            liable if he or she notifies the Secretary of State within one  
            business day after the proponent obtains knowledge of a  
            potential violation.

          5)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.   
            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.






















                                                                  AB 2946

                                                                  Page  3


           The Senate amendments  :
           
           1)Delete a provision of the bill that required a state or local  
            initiative, referendum, or recall petition to contain a  
            disclosure statement identifying the three largest  
            contributors to the measure.

          2)Delete a provision of the bill that required a state or local  
            initiative, referendum, or recall petition to indicate whether  
            it was being circulated by a paid signature gatherer or by a  
            volunteer.

          3)Clarify that when a proponent of an initiative measure is held  
            liable for the unlawful conduct of one of his or her  
            circulators, the penalty shall be a fine not exceeding the  
            fine applicable to the violation committed by the circulator.

          4)Add a severability clause.
           
          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, enforcement costs potentially reaching $200,000  
          annually.

           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."

          The Senate amendments to this bill removed various provisions of  
          this bill that were substantially similar to provisions in SB  
          1598 (Bowen), so as to avoid a conflict with that bill.  SB 1598  










                                                                  AB 2946

                                                                  Page  4


          is pending a vote on concurrence in Assembly amendments on the  
          Senate Floor.  
           
          Please see the policy committee analysis for a full discussion  
          of this bill.
           
          GOVERNOR'S VETO MESSAGE  :

               The California Constitution provides the People the  
               right to directly enact laws, approve amendments to  
               the Constitution, to reject laws passed by the  
               legislature and signed by the Governor, and to remove  
               those elected from office. As envisioned by Hiram  
               Johnson, this important democratic process gives the  
               people direct control over their government and is one  
               of our most important means to prevent out of control  
               special interests.

               This measure is a direct assault on the People's right  
               to initiative, referendum and recall. By requiring  
               signatures to be held invalid if a petition has any  
               sort of defect, this bill would allow legal  
               technicalities to thwart the will of hundreds of  
               thousands of Californians who choose to sign  
               initiative petitions. This runs counter to the  
               longstanding judicial policy of applying a liberal  
               construction to the people's power of the initiative.

               The prohibitions on per-signature payments will make  
               it more difficult for grass-roots organizations to get  
               the necessary signatures in the time allotted. As I  
               have said before making the process more difficult may  
               be fine for those opposed to the initiative process or  
               those who profit from it, but it is not for everyday  
               Californians with an idea for reform.



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












                                                                  AB 2946

                                                                  Page  5



                                                                FN: 0017912