BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2369
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          Date of Hearing:   May 6, 2014

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                 AB 2369 (Hagman) - As Introduced:  February 21, 2014
           
          SUBJECT  :   Elections: voter-requested recounts.

           SUMMARY  :   Modifies provisions of law that govern who can pay  
          for a recount.  Specifically,  this bill  , requires a voter or the  
          candidate-controlled campaign committee represented by the voter  
          that files a request seeking a recount to deposit money to pay  
          for the recount from the voter's own personal funds or from  
          funds of the candidate-controlled campaign committee of the  
          candidate on whose behalf the recount is being requested. 

           EXISTING LAW  :

          1)Defines "voter" to mean an elector who is registered pursuant  
            to current law.

          2)Allows any voter, within five days following the completion of  
            the official canvass and following the completion of any  
            postcanvass risk-limiting audit conducted pursuant to existing  
            law, to request in writing that the elections official  
            responsible for conducting an election commence a recount of  
            the votes cast for candidates for any office or for or against  
            any measure, provided the office or measure is not voted on  
            statewide.  Allows a recount for an election that is conducted  
            in more than one county to be conducted in any or all of the  
            affected counties.

          3)Allows any voter, following the completion of the official  
            canvass and within five days beginning on the 29th day after a  
            statewide election, to file with the Secretary of State (SOS)  
            a written request for a recount of the votes cast for  
            candidates for any statewide office or for or against any  
            measure voted on statewide.  Allows any voter, within five  
            days following the completion of any postcanvass risk-limiting  
            audit conducted pursuant to existing law, to file with the SOS  
            a written request for a recount of the votes cast for  
            candidates for any statewide office or for or against any  
            measure voted on statewide.  Requires a request filed to  
            specify in which county or counties the recount is sought and  
            specify on behalf of which candidate, slate of electors, or  








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            position on a measure it is filed. 

          4)Permits any other voter, at any time during the conduct of a  
            recount and for 24 hours thereafter, to request the recount of  
            any precincts in an election for the same office, slate of  
            presidential electors, or measure not recounted as a result of  
            the original request.

          5)Requires a voter seeking the recount, before the recount is  
            commenced and at the beginning of each subsequent day, to  
            deposit with the elections official the amount of money  
            required by the elections official to cover the cost of the  
            recount for that day.

           FISCAL EFFECT  :   Keyed non-fiscal by Legislative Counsel.





           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author: 

               While current law requires the voter requesting the recount  
               to deposit the funds required, the law is unclear from  
               where those funds are allowed to come.  AB 2369 clarifies  
               existing law by explicitly stating that funds for the  
               recount have to be provided by the voter's personal funds  
               or funds from the voter's controlled campaign committee.   
               This bill won't stop outside sources from being able to  
               contribute [to] a recount effort, but ensures transparency  
               and accountability within the recount process, as voters  
               can easily track campaign contributions.  However, AB 2369  
               will prevent direct 3rd party contributions towards an  
               election recount.  It is vital that we provide clarity  
               under current law to bring transparency to election  
               recounts.  Voters deserve to know not only who requests a  
               recount, but also how it is being funded.

           2)Restrictions on Who Pays for a Recount  :  Existing law permits  
            any registered voter to request a recount within five days  
            following the completion of the official canvass.  The voter  
            requesting the recount must specify on behalf of which  
            candidate, slate of electors, or position on a measure it is  








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            filed.  Additionally, at any time during the conduct of a  
            recount and for 24 hours thereafter, current law allows any  
            voter other than the original requestor to request a recount  
            of additional precincts.  The voter filing the request for the  
            recount is required to deposit, before the recount commences  
            and at the beginning of each day following, sums as required  
            by the elections official to cover the cost of the recount for  
            that day. If upon completion of the recount, the results are  
            reversed, the deposit shall be returned.  

          This bill restricts who may pay for a recount.  Specifically,  
            this bill requires a voter that requests a recount to pay for  
            the recount from his or her own personal funds and requires a  
            candidate controlled campaign committee that requests a  
            recount to use funds from the candidate-controlled campaign  
            committee of the candidate on whose behalf the recount is  
            being requested to pay for the recount.  According to the  
            author, the law is unclear and there is confusion on where  
            funds are actually allowed to come from to pay for the recount  
            and voters deserve to know not only who requests a recount but  
            also how it is being funded.  

          The practical effect of this bill is that a recount can only be  
            requested if it is paid for by a voter who uses his or her own  
            personal funds or a candidate who uses his or her candidate  
            campaign committee funds.  This bill excludes other entities,  
            such as a local political party, a ballot measure campaign  
            committee, or a passionate advocacy organization interested  
            and invested in the outcome of a particular candidate or a  
            ballot measure, from being able to request a recount because  
            the bill does not permit these entities to directly pay for  
            the recount.  

          It is possible that entities other than a candidate's campaign  
            committee may be interested and invested in pursuing a recount  
            to hopefully change the outcome of an election.  One of the  
            only ways in which another entity could plausibly request and  
            pay for a recount would be if a candidate had a desire to  
            request a recount and agreed to pay for it using funds from  
            the candidate controlled campaign committee and the outside  
            entity contributed to the candidate's controlled campaign  
            committee to pay for the recount.  The only other plausible  
            alternative available to an outside entity would be if the  
            entity was able to convince an individual voter to request a  
            recount on his or her behalf and then paid for it with his or  








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            her own personal funds.  

          In 1978, the Legislature passed and the Governor signed AB 3313  
            (Keysor), Chapter 847, Statutes of 1978, which made  
            significant changes to recount processes and procedures.   
            Specifically, AB 3313 allowed any voter to request and pay for  
            a recount, instead of only allowing a candidate for office, an  
            authorized representative of a candidate for office, or an  
            authorized representative of a ballot measure to request and  
            pay for a recount.  According to bill documents obtained at  
            the California Archives, the policy change to broaden who can  
            request and pay for a recount was necessary because of the  
            difficulty of identifying who is an "authorized  
            representative" or should be entitled to request a recount,  
            especially for ballot measures.  According to the bill  
            analysis, while it might be sufficient to provide that  
            recounts could be only requested by the candidates themselves  
            or by their representative, it is not the case for ballot  
            measures.  Furthermore, school and special district recounts  
            avoided this problem by allowing "any voter" to seek a  
            recount.  Finally, the bill analysis states that it is  
            unlikely that there will be a proliferation of recount  
            requests since the person seeking the recount will have to pay  
            the cost.  It is clear that the Legislature made a conscious  
            effort to change public policy and broaden who is allowed  
            request and pay for a recount.  This bill, which restricts who  
            is able to pay for and request a recount, takes a step back  
            and reverts public policy back to 1977.  

           3)Increased Transparency ?  According to the author's statement,  
            while this bill won't stop outside sources from being able to  
            contribute to a recount effort, it will however, ensure  
            transparency and accountability within the recount process and  
            provide clarity in the law as to who is able to pay for the  
            cost of a recount and reveal how a recount is being funded.   
            While the author's goal is laudable, the committee may wish to  
            consider whether this bill truly provides sunshine on who is  
            paying for a recount.  This bill, which requires a voter that  
            requests a recount to pay for the recount from his or her own  
            personal funds may not truly reveal where those funds are  
            coming from.  A business or organization could contribute  
            money to the person requesting the recount and the voter  
            requesting the recount can then submit cash, a cashier's  
            check, or a money order to cover the costs of the recount.   
            So, while it may seem as though the recount is being paid by  








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            the personal funds of the voter, it is not entirely certain  
            that is the case.  

          Furthermore, if a candidate pays for a recount, it is already  
            required it to be disclosed and reported under the Political  
            Reform Act (PRA).  Additionally, if a recount is paid for by  
            third party in coordination with or at the request of a  
            candidate it is already considered a reportable in-kind  
            contribution under the PRA.  Consequently, it is unclear how  
            this bill will result in more transparency when current law  
            already provides for disclosure.  

           4)Political Reform Act and Enforcement  :  In 1974, California  
            voters passed an initiative, Proposition 9 that created the  
            Fair Political Practices Commission (FPPC) and codified  
            significant restrictions and prohibitions on candidates,  
            officeholders, and lobbyists. That initiative is commonly  
            known as the PRA. The FPPC is responsible for enforcing state  
            laws governing political campaigns, fundraising, lobbying, and  
            conflicts of interest for elected officials.  This bill, which  
            requires a candidate controlled campaign committee to use  
            funds from the candidate controlled campaign committee to pay  
            for the recount, takes an aspect of the PRA and places it in  
            the Elections Code.  As a result, the FPPC would not be  
            required to enforce these provisions of this bill and it is  
            unclear who would enforce the requirements in this bill.   
            Would the enforcement of this bill fall into the hands of the  
            elections official?   

           5)Other States  :  Each state has specific laws for conducting  
            recounts.  A recount can be initiated either automatically or  
            by an individual or group of individuals.  Some states require  
            an automatic recount when the margin of victory falls within a  
            predetermined percentage, such as 0.5 or one percent.   
            According to a 2010 Election Assistance Commission's (EAC)  
            draft Recounts and Contests Study, approximately 21 states and  
            the District of Columbia have automatic recounts in some  
            elections (California does not).  Automatic recounts usually  
            require the state to pay for the recount costs.  The second  
            type of recount is an initiated recount.  Some states allow  
            for candidate-initiated recounts that allow candidates to  
            petition for a recount within a specified time period after  
            certification of election results.  According to the EAC draft  
            study, 39 states and the District of Columbia have statutes or  
            regulations authorizing candidate-initiated recounts.   








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            Additionally, there are citizen-initiated recounts allowed in  
            27 states and the District of Columbia, whereby a citizen may  
            petition for a recount.  It's common for the citizen who  
            requested the recount to pay for the recount.  As mentioned  
            above, California law allows for any voter to request a  
            recount.   

          In addition, election recount laws vary greatly across states.   
            According to EAC's draft study, "there are no common practices  
            across states associated with what an entity pays for the cost  
            of a recount.  For automatic recounts, it is usually the state  
            or government that pays for the recount.  For initiated  
            recounts, there are many different ways states cover the costs  
            of recounts."  For instance, according to the report, 27  
            states have laws that require a petitioner to pay the actual  
            costs of the recount, one state requires petitioners to pay a  
            pre-determined estimated cost, and 17 states have a fixed fee  
            as determined by their state laws.  Additionally, two states  
            give the court or government direction in assessing the costs  
            of a recount, and in one state, the law is not clear regarding  
            how the actual cost of the recount is determined.  Finally, in  
            some states, the outcome of the initiated recount can affect  
            the payment requirement, such as when the petitioner is  
            declared the winner, he or she often does not have to pay for  
            the recount.  California statute requires the voter that  
            requested the recount to pay for the recount.  If upon  
            completion of the recount, the results are reversed, the  
            payment is returned to the requestor.  

          As mentioned above, this bill requires a voter that requests a  
            recount to pay for the recount from his or her own personal  
            funds and requires a candidate controlled campaign committee  
            that requests a recount to use funds from the  
            candidate-controlled campaign committee.  The author argues  
            that other states clarify that the voter or candidate  
            requesting the recount must pay for it at their own expense.   
            The author's office provided the committee with two examples  
            of states that make this clarification - Minnesota and  
            Colorado.  Minnesota requires a candidate to request a full or  
            partial recount at his or her own expense.  However, Minnesota  
            state law allows for statewide automatic recounts.   
            Specifically, if the margin between the two top candidates  
            falls within one-half of one percent, an automatic hand  
            recount is required.  Moreover, in the instance that an  
            automatic hand count is required, the taxpayers pay for the  








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            recount.  However, if the vote margin is greater than the  
            one-half of one percent, then Minnesota state law permits a  
            candidate to request a full or partial recount, but it is at  
            his or her own expense.  Moreover, Colorado state law also  
            provides for automatic recounts and states that a recount of  
            any election contest shall be held if the difference between  
            the highest number of votes cast in that election contest and  
            the next highest number of votes cast in that election contest  
            is less than or equal to one-half of one percent of the  
            highest vote cast in that election contest.  Additionally,  
            whenever a recount is not required, Colorado state law allows  
            an interested party to submit a notarized written request for  
            a recount at the expense of the interested party making the  
            request.  Under Colorado law, the term "interested party" is  
            limited to the candidate who lost the election, the political  
            party or political organization of such candidate, any  
            petition representative for a ballot issue or ballot question  
            that did not pass at the election, or the governing body that  
            referred a ballot question or ballot issue to the electorate  
            if such ballot question or ballot issue did not pass at the  
            election.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Nichole Becker / E. & R. / (916)  
          319-2094