BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND  
                           CONSTITUTIONAL AMENDMENTS
                          Senator Loni Hancock, Chair


          BILL NO:   AB 6              HEARING DATE: 7/7/09
          AUTHOR:    SALDANA           ANALYSIS BY:  Frances Tibon  
          Estoista
          AMENDED:   4/28/09
          FISCAL:    YES
          
                                     SUBJECT
           
          Initiatives: paid circulators
                                   DESCRIPTION 
          
           Existing law  establishes a process for proposing initiative  
          measures submitted to voters in California and sets forth  
          qualifications for persons who circulate initiative  
          petitions.

           Existing law  provides that a person who is a voter or who  
          is qualified to register to vote in this state may  
          circulate an initiative or referendum petition anywhere  
          within the state.

           Existing law  provides that only proponents of an initiative  
          may file petitions.
           
          This bill  requires professional petition firms to register  
          with the Secretary of State (SOS) and pay a registration  
          fee established by the SOS.  Requires the SOS to use the  
          fees collected to maintain an online directory of  
          professional firms.

          Specifically,  this bill  :

           1. Defines the term, "professional petition firm" as an  
             entity that pays individuals to circulate petitions and  
             gather signatures for the purpose of qualifying an  
             initiative on a state or local election ballot.

           2. Requires a professional petition firm to register  
             annually with the SOS in order to pay individuals to  
             circulate petitions and collect signatures to qualify an  
             initiative on a state or local election ballot.










           3. Requires the registration to include the full name,  
             address, and partners, owners, or officers of the firm  
             and to be accompanied by a registration fee to be  
             established by the SOS.

           4. Requires the SOS to use the fee revenues to maintain on  
             its Internet web site a directory of professional  
             petition firms and defray any other associated costs  
             with the requirements of this bill.

           5. Requires a member of a professional petition firm to  
             review the law relating to obtaining petition signatures  
             with each paid petition circulator as a condition of the  
             circulator's hiring.

           6. Requires a copy of the training materials provided to  
             the prospective petition firm employees to be submitted  
             by the firm to the SOS. Requires the firm to submit a  
             statement to the SOS for each circulator, signed by the  
             circulator and the individual conducting the review,  
             that the circulator has received the review.

                                    BACKGROUND  
          
          It's reasonable to say that any proponent with a million  
          dollars can easily qualify a ballot measure.  This allows  
          well-financed proponents to circumvent the screening  
          mechanisms designed by the drafters of the initiative  
          process to ensure that initiatives reach the ballot with  
          broad public support.  The extent of fraudulent signature  
          gathering in California is unknown.  According to a 2008  
          report issued by the Center for Governmental Studies, there  
          are no known cases in the state of volunteer signature  
          gatherers submitting fraudulent signatures.  However, since  
          2000, there have been 13 convictions on charges of  
          falsified petitions in California, with the most recent  
          occurring in August 2006 when a solicitor signed 14  
          fictitious signatures for a measure that qualified for the  
          November 2004 ballot.  

                                     COMMENTS  
          
           1.According to the author  :  Over the decades California has  
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            seen the initiative process shift from what was  
            originally envisioned to be a volunteer-based effort to a  
            system where increasingly large sums of money are  
            required in order to qualify a measure for the ballot.   
            Qualifying an initiative for the ballot now necessitates  
            the use of paid signature gathers (usually employed by a  
            professional petition firm, at a typical cost of between  
            $1 million and $3 million per petition), yet  
            unfortunately, the state lacks a mechanism to verify  
            whether or not these individuals are provided with  
            sufficient understanding of the laws that regulate this  
            activity, including what constitutes fraud.  This bill  
            seeks to create a proactive requirement that better  
            ensures that proper training of these laws is provided.

           2.National Efforts to Curb Signature Gathering Fraud  :  On  
            May 15, 2009, the Governor of Colorado signed House Bill  
            1326, which will require signature-gathering firms to be  
            licensed by the state and would prohibit them from paying  
            petition circulators by the signature.  The bill will  
            also impose several new accountability measures such as  
            tougher rules for petition notarization and will create a  
            system by which a circulator's signatures could be  
            invalidated if certain requirements are not met.

          In Oregon, Secretary of State Kate Brown sponsored House  
            Bill 2005, a bill that will make substantial changes to  
            the state's current initiative process.  This bill was  
            signed into law on June 25, 2009, and will among other  
            things increase the time allowed for background checks of  
            prospective signature gatherers from three days to five,  
            give the state Elections Division access to state police  
            databases, and authorize the Secretary of State to  
            invalidate signatures gathered by anyone convicted of  
            fraud, forgery or identity theft and signatures gathered  
            by circulators who are not properly registered with the  
            state or who have been found liable for certain civil or  
            criminal election law offenses.  The bill will also make  
            chief petitioners or petition gathering firms liable in  
            cases where they should have known that a circulator  
            broke the law and require those chief petitioners to turn  
            in signature sheets once a month and authorize the  
            secretary of state to begin verifying signatures once a  
            petition has reached 50 percent of the signatures  
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            required to qualify for the ballot.  The bill also  
            prohibits circulators from simultaneously gathering  
            signatures as a volunteer and as a paid circulator.

           3.Related Legislation  :  SB 34 (Corbett), which is scheduled  
            for hearing in the Assembly Elections and Redistricting  
            Committee, makes it a misdemeanor for a person to pay or  
            to receive money or any other thing of value based on the  
            number of signatures collected on a state or local  
            initiative, referendum, or recall petition.

          SB 1686 (Denham) of 2008 would have made it a misdemeanor,  
            punishable by a fine not exceeding $5,000, by  
            imprisonment in a county jail not exceeding one year, or  
            by both the fine and imprisonment, for a person, company,  
            organization, company official, or other organizational  
            officer in charge of a person who circulates an  
            initiative, referendum, or recall petition to knowingly  
            direct or permit the person to make a false affidavit  
            concerning the initiative, referendum, or recall  
            petition.  SB 1686 was vetoed by the Governor, though the  
            Governor did not express any policy objections to the  
            bill.  Instead the bill was one of 136 bills that  
            received the same veto message.  That veto message  
            stated:

          The historic delay in passing the 2008-2009 State Budget  
            has forced me to prioritize the bills sent to my desk at  
            the end of the year's legislative session.  Given the  
            delay, I am only signing bills that are the highest  
            priority for California.  This bill does not meet that  
            standard and I cannot sign it at this time.

           4.Establishing Registration Fees  .  The Assembly  
            Appropriations Committee analysis notes the following in  
            its fiscal assessment of AB 6:  Likely minor costs to the  
            SOS to establish and maintain the registration system, at  
            least partially offset by fees paid by registrants.  The  
            SOS indicates that there are currently less than 20  
            petition firms operating in the state.

          The Committee notes that while the intent of this bill is  
            to continue to ensure a fair and regulated initiative  
            signature gathering process, there is no explanation as  
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            to how the SOS is planning to formulate registration  
            fees, nor are limits set forth as to how high fees can be  
            established including if they will ever be raised in the  
            future to keep in line with inflation etc.

                                   PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:  5-2
          Assembly Appropriations Committee:       11-5
          Assembly Floor:                          49-28

                                    POSITIONS  
          
          Sponsor: Author

          Support: Planned Parenthood Affiliates of California
                   Secretary of State

          Oppose:  California Family Council
                   Capitol Resource Family Impact
                   Crusade for Life, Inc.
                   Life Priority Network




















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