BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 34
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 34 (Corbett) - As Amended:  April 14, 2009 

          Policy Committee:                              ElectionsVote:4-2

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

           SUMMARY  

          This bill:

          1)Makes it unlawful for anyone to pay, or be paid, based on the  
            number of signatures obtained for a state or local initiative,  
            referendum, or recall petition.

          2)Makes a violation of the above a misdemeanor, subject to the  
            following penalties:

             a)   For a person or organization that pays someone based on  
               the number of signatures collected, a fine of up to $25,000  
               and/or imprisonment in county jail for up to one year.

             b)   For a person paid based on the number of signatures  
               collected, a fine of up to $1,000 and/or imprisonment in  
               county jail for up to six months.

           FISCAL EFFECT  

          Unknown non-reimbursable costs to cities and counties for  
          prosecution and incarceration, offset to some extent by fine  
          revenues.

           COMMENTS  

           1)Purpose  .  According to the author's office, in California and  
            throughout the country there are increasing reports of ballot  
            initiative fraud in the signature gathering process. Critics  
            argue that paying signature gatherers on a per-signature basis  
            encourages fraud, i.e. since a circulator who collects more  
            signatures will earn more, they are more likely to forge  








                                                                  SB 34
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            signatures or to misrepresent the content of the petition in  
            order to encourage people to sign.  (According to the National  
            Conference of State Legislatures, payments typically range  
            from $1 to $3 per signature, and occasionally are as high as  
            $10 per signature.)  

            Specific cases of fraud in Montana, Nevada, and Oklahoma  
            included circulators who forged signatures onto their  
            petitions of names they chose from a phonebook.  Others have  
            inserted carbon paper and a second petition beneath the  
            original one, without the persons' knowledge, to get their  
            signature on another petition. This bill is intended to  
            address this issue by banning the possibility of paying per  
            signature.

           2)Prior Legislation  .  AB 2946 (Leno) of 2006, which included  
            provisions establishing penalties for paying or receiving  
            payment on a per-signature basis, was vetoed due to concerns  
            that the bill would inhibit the initiative process.

           3)Opposition  .  A coalition of associations representing business  
            interests, including the California Chamber of Commerce, the  
            California Apartment Association, and the Pharmaceutical  
            Research and Manufacturers of America, argues that the bill  
            will limit the public's role in the initiative process and  
            "would make it prohibitively expensive to do an initiative or  
            a recall and next to impossible to do a referendum."

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