BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1929 (Gorell) - Ballot Marking Systems
          
          Amended: June 28, 2012          Policy Vote: E&CA 5-0
          Urgency: Yes                    Mandate: No
          Hearing Date: August 16, 2012                          
          Consultant: Maureen Ortiz       
          
          SUSPENSE FILE.


          Bill Summary:  AB 1929 requires the Secretary of State (SOS) to 
          study and adopt regulations relating to the use of ballot 
          marking systems by special absentee voters.

          Fiscal Impact: Although the costs of reviewing and testing a 
          ballot marking system will be paid for by the vendor that 
          submits the system, staff estimates that the SOS will likely 
          incur costs of over $50,000 to study and adopt regulations 
          governing the use of ballot marking systems before a vendor can 
          submit a system for approval.

          The Secretary of State will additionally incur costs for 
          conducting hearings, and examinations.  AB 1929 authorizes the 
          SOS to employ up to three expert electronic technicians, and 
          requires their compensation to be paid by the vendor that 
          submits the ballot marking system.

          Background:  A "special absentee voter" is an elector who is any 
          of the following:

             -    A member of the Armed Forces of any auxiliary branch 
               thereof;
             -    A citizen of the U. S. temporarily living outside of the 
               territorial limits of the U. S.,
             -    Servicing on a merchant vessel documented under the laws 
               of the U. S., or
             -    A spouse or dependent of a member of the Armed Forces of 
               any auxiliary branch.

          Existing law requires the county elections official to mail a 
          ballot to all special absentee voters and overseas voters who 
          are permanent vote by mail voters as soon as possible on or 








          AB 1929 (Gorell)
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          after the 60th day prior to an election.  Existing law permits 
          ballots to be sent by mail, facsimile, or electronic 
          transmission.  A special absentee ballot may be returned by mail 
          or by fax transmission.

          A voting system must be approved by the Secretary of State prior 
          to its use, and is prohibited from being connected to the 
          Internet or from electronically receiving or transmitting 
          election data through an exterior communication network, 
          including a public telephone system, when the communication 
          originates from or terminates at a polling place, satellite 
          location, or counting center - or from receiving or transmitting 
          wireless communications or wireless data transfers.  

          Proposed Law:  AB 1929 establishes processes and procedures for 
          the review and approval of "ballot marking systems" for use in 
          California elections.

          AB 1929 requires the Secretary of State to study and adopt 
          regulations relating to the use of ballot marking systems.  The 
          bill also provides that no later than 10 business days after the 
          Secretary of State approves the use of a new or updated ballot 
          marking system, the vendor of the ballot marking system shall 
          put an exact copy of the approved source code for each component 
          of the ballot marking system, including complete build and 
          configuration instructions and related documents for compiling 
          the source code into object code into an approved escrow 
          facility.

          AB 1929 defines "ballot marking system" as any mechanical, 
          electromechanical, or electronic system and its software that is 
          used for the sole purpose of marking a ballot for a special 
          absentee voter and is not connected to a voting system at any 
          time.  The bill specifically provides that a ballot marking 
          system is not a voting system.  A ballot marking system shall 
          not have the capability to use a remote server to mark a voter's 
          selections transmitted to the server from the voter's computer 
          via the Internet, and may not store or tabulate votes.

          Any vendor of a ballot marking system must submit an application 
          to the Secretary of State.  The SOS will conduct an examination 
          and will furnish a complete report of the findings of the 
          examining engineers to the Governor and the Attorney General.   








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          The SOS must hold a public hearing to give interested persons an 
          opportunity to express their views for or against the system.

          AB 1929 further requires the SOS to establish the specifications 
          for and the regulations governing ballot marking systems, and 
          the related software to ensure its suitability, to preserve the 
          secrecy of the ballot, and to be safe from fraud or 
          manipulation.   The SOS will be authorized to employ up to three 
          expert electronic technicians, but their compensation will be 
          paid by the vendor that submits the ballot marking system.  
          Vendors will be required to deposit sufficient funds to 
          guarantee the payment of the examination charges. 

          The SOS must issue a report within 30 days after completing the 
          examination of any ballot marking system stating whether it can 
          safely be used in a California election, thereby issuing final 
          approval for use of the system.  A copy of the report will be 
          sent to the board of supervisors in every county within 10 days 
          after it is filed. 

          AB 1929 additionally authorizes the Secretary of State to seek 
          injunctive and administrative relief when a ballot marking 
          system has been compromised by the addition or deletion of 
          hardware, software, or firmware without prior approval or if it 
          is found to be defective.  A civil penalty of up to $10,000 per 
          violation will be split between the Secretary of State and the 
          county where the violation occurred.  The penalty for a known, 
          but undisclosed defect, fault, or failure in a system will be 
          subject to a civil penalty of up to $50,000 per violation.

          Staff Comments:  AB 1929 is an urgency measure intended to 
          potentially allow the use of a ballot marking system in the 
          upcoming statewide general election in November.