BILL ANALYSIS                                                                                                                                                                                                    






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


          BILL NO:   SB 1404           HEARING DATE: 4/6/10
          AUTHOR:    PAVLEY            ANALYSIS BY:  Frances Tibon  
          Estoista
          AMENDED:   AS INTRODUCED
          FISCAL:    YES
          
                                     SUBJECT
           
          Elections: ballot cards and voting systems

                                   DESCRIPTION  
          
           Existing law requires  the Secretary of State (SOS) to adopt  
          regulations governing the manufacture, distribution, and  
          inventory control of punchcards, and requiring the  
          inspection of facilities that manufacture and store  
          punchcards.

           Existing law  requires the SOS to approve a punchcard  
          manufacturer prior to the manufacturers providing of  
          punchcards for use in California elections.

           This bill  :

             Requires a voting system vendor that knows of, or  
             becomes aware of, a defect, fault, or failure in the  
             voting system or a part of the voting system, to notify  
             the SOS and all local elections officials who use the  
             system of that defect, fault, or failure.  Requires this  
             notification to be made within 30 calendar days from the  
             date after the vendor learns of the defect, fault, or  
             failure, or at the time the system is submitted for  
             review by the SOS.  Requires all known defects, faults,  
             or failures on systems that are currently approved for  
             use in California to be disclosed no later than January  
             8, 2011.

             Requires the SOS to notify the United States Election  
             Assistance Commission of any defect, fault, or failure  
             disclosed to the SOS by a voting system vendor pursuant  
             to this bill.










             Requires a ballot card manufacturer or finisher to  
             disclose any known flaw or defect in its manufacturing  
             or finishing process in writing to the SOS not later  
             than five working days before the SOS begins his/her  
             initial inspection of that manufacturer's or finisher's  
             facilities.  Requires a ballot card manufacturer or  
             finisher that has been approved by the SOS to notify the  
             SOS and affected local elections officials in writing  
             within two business days after it discovers any flaw or  
             defect in its manufacturing or finishing process.

             Requires the SOS to inspect manufacturing, finishing,  
             and storage facilities for ballot cards biennially.

             Permits the SOS to seek injunctive and administrative  
             relief when a voting system or part of a voting system  
             is defective due to a known hardware, software, or  
             firmware defect, fault, or failure that has not been  
             disclosed as required by this bill.  Permits the SOS to  
             seek all of the following relief for a known but  
             undisclosed defect, fault, or failure in a voting system  
             or part of a voting system approved or conditionally  
             approved for use in California:

           A.  Refund of all moneys paid by a local agency for a  
              voting system or part of a voting system that is  
              defective due to a known but undisclosed defect, fault,  
              or failure.

           B.  A civil penalty from the offending party not to exceed  
              $50,000 per violation.  Each defect, fault, or failure  
              shall be considered a separate violation.  A defect,  
              fault, or failure constitutes a single violation  
              regardless of the number of voting system units in  
              which the defect, fault, or failure is found.

           C.  A penalty of $1,000 for each day between the deadline  
              for the vendor to disclose the defect, fault, or  
              failure and the day when the required disclosure is  
              filed with the SOS.

             Repeals an obsolete provision of law that establishes a  
             revolving fund for the purchase of ballot paper.
          SB 1404 (PAVLEY)                                       Page  
          2  
           









             Changes terminology in the Elections Code from  
             "punchcards" to "ballot cards."

                                    BACKGROUND  
          
           The Humboldt County Incident  .  Currently, ballot vendors or  
          voting system vendors are not required to inform the SOS  
          about previously undisclosed flaws in their product before  
          or after an election.  A recent incident in Humboldt County  
          during the November 2008 elections found that Premier  
          Elections Solutions (formerly Diebold), GEMS software  
          erroneously deleted nearly 200 votes cast.

          It was later learned that while Premier was aware of the  
          problem at least four years before the election in which  
          its effects came to light in Humboldt County, and although  
          Premier made limited attempts (pre-election) to notify  
          affected counties of the software flaw, they failed to  
          provide notice of the defect to the National Association of  
          State Election Directors, the United States Election  
          Assistance Commission, the SOS or to the public.

                                     COMMENTS  
          
              1.   According to the author  , "SB 1404 is designed to  
               ensure the integrity of California's voting system and  
               requires notification steps to prevent future errors,  
               discrepancies and uncertainties surrounding our voting  
               processes."

              2.   Related legislation  .  SB 541 (Pavley), 2009 was  
               almost identical to this bill, but was vetoed by the  
               Governor due to concerns over civil penalty provisions  
               placed on voting system vendors.  

                                    POSITIONS  
          
          Sponsor: Secretary of State

           Support: None received

           Oppose:  None received
          SB 1404 (PAVLEY)                                       Page  
          3