BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1047
                                                                  Page  1

          Date of Hearing:   June 27, 2006

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Tom Umberg, Chair
                     SB 1047 (Bowen) - As Amended:  March 8, 2006

           SENATE VOTE  :   Vote not relevant.
           
          SUBJECT  :   Paid circulators: penalties.

           SUMMARY  :   Prohibits payment on a per-piece or per-signature  
          basis for individuals gathering signatures or registering  
          voters.  Specifically,  this bill  :   

          1)Makes it a misdemeanor for a person to offer to pay or to pay  
            money or other valuable consideration to another person, and  
            makes it a misdemeanor for a person to receive money or other  
            valuable consideration, either directly or indirectly, on a  
            per-affidavit basis to assist another person to register to  
            vote by receiving the completed affidavit of registration.   
            Provides that these provisions shall not be construed to  
            prohibit payment for assisting another person to register to  
            vote if the payment is not, either directly or indirectly, on  
            a per-affidavit basis.

          2)Makes it a misdemeanor for a person to offer to pay or to pay  
            money or other valuable consideration to another person, and  
            makes it a misdemeanor for a person to receive money or other  
            valuable consideration, based either directly or indirectly on  
            the number of signatures obtained on a state, county,  
            municipal, or district initiative, referendum, or recall  
            petition.  Provides that these provisions shall not be  
            construed to prohibit payment for petition circulation if the  
            payment is not based, either directly or indirectly, on the  
            number of signatures obtained.

          3)Makes various corresponding changes.

           EXISTING LAW  :

          1)Authorizes any person who is a voter or who is qualified to  
            register to vote to circulate an initiative or referendum  
            petition.  Authorizes any person who is a voter to circulate a  
            recall petition.









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          2)Requires that a state or local initiative petition contain a  
            notice alerting voters that the petition may be circulated by  
            a paid signature gatherer or a volunteer, and that voters have  
            the right to ask if a petition circulator is a paid gatherer  
            or volunteer.

          3)Requires any person who accepts money or other valuable  
            consideration in return for assisting with voter registration  
            to sign and affix on the voter registration form his or her  
            full name, telephone number, address, and the name and phone  
            number of the person, company, or organization, if any, that  
            agrees to pay money or valuable consideration for the  
            completed affidavit of registration.

          4)Requires any person, company, or other organization that  
            agrees to pay money or other valuable consideration to a  
            person for assisting with voter registration to maintain  
            specific records.

          5)Requires a petition circulator to declare, under penalty of  
            perjury, that the circulator witnessed the petition's  
            signatures being written and that according to the best  
            information available to and belief of the circulator, each  
            signature is the genuine signature of the person whose name it  
            purports to be.

          6)Establishes penalties for fraudulent activity related to  
            signature gathering and voter registration.

           FISCAL EFFECT  :   Unknown.  State-mandated local program;  
          contains a crimes and infractions disclaimer.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author, "petition and  
            voter registration fraud can best be addressed by removing the  
            incentive to commit it.  Press reports and statistics from the  
            Secretary of State demonstrate the need to prohibit per  
            signature and per affidavit payment to circulators.  Recent  
            federal case law permits this."

           2)Bounty Hunter Enforcement Actions  :  Individuals who are paid  
            to register voters or to collect signatures on initiative,  
            referendum, or recall petitions are commonly referred to as  
            "bounty hunters."  According to information from the Secretary  








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            of State (SOS), the Election Fraud Investigation Unit (EFIU)  
            of the SOS has opened 1023 cases involving bounty hunters  
            since 1994.  About 66% of the cases opened by the EFIU  
            involved cases of fraudulent voter registration, while  
            approximately 18% of cases involved falsified petition  
            signatures.

          Of the 1023 cases involving bounty hunters, 163 cases are  
            currently open and 15 cases are pending with various District  
            Attorneys' offices.  Of the cases that have been closed, 67  
            bounty hunters were convicted following an EFIU investigation,  
            with 61 of those convictions for fraudulent voter registration  
            or falsified petition signatures.

           3)Orange County Voter Registration  :  In March of this year, the  
            Orange County Register and the Los Angeles Times reported that  
            Orange County elections officials received several complaints  
            about a voter registration campaign for the Republican Party  
            of Orange County from voters who were re-registered with the  
            Republican Party without their permission.  According to press  
            reports, the company in charge of the registration drive was  
            paying workers as much as $10 for every completed voter  
            registration card.  As of late May, Orange County elections  
            officials reported receiving about 450 complaints of illegal  
            voter registrations.  Similar complaints were made about voter  
            registration campaigns in Riverside and San Bernardino  
            counties.  The Attorney General and SOS are investigating  
            those complaints.  
           
           4)United States Supreme Court Jurisprudence  :  In 1988, the  
            United States Supreme Court ruled that a Colorado prohibition  
            against the use of paid circulators for initiative petitions  
            violated the First Amendment's guarantee of free speech.   
            Writing for a unanimous court, Justice Stevens noted that  
            "[t]he State's interest in protecting the integrity of the  
            initiative process does not justify the prohibition because  
            the State has failed to demonstrate that it is necessary to  
            burden appellees' ability to communicate their message in  
            order to meet its concerns."   Meyer v. Grant  (1988), 486 U.S.  
            414.  The  Meyer  court, however, did not address the issue of  
            whether a state may regulate the manner in which circulators  
            are paid.

           5)Other Federal Court Jurisprudence  :  In February 2001, the  
            Eighth Circuit Court of Appeals ruled that a North Dakota law  








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            prohibiting payment for signature collection on a  
            per-signature basis was consistent with the United States  
            Constitution and with the Supreme Court's rulings in  Buckley   
            and  Meyer .  In reaching this decision, the court noted that  
            the state "produced sufficient evidence that the regulation is  
            necessary to insure the integrity of the initiative process,"  
            and also noted that no evidence was presented "that payment by  
            the hour, rather than on commission, would in any way burden  
            [the] ability to collect signatures."  Initiative & Referendum  
            Institute v. Jaeger  (2001), 241 F.3d 614.

          In February 2006, the Ninth Circuit Court of appeals ruled that  
            an Oregon law that prohibited payment to electoral petition  
            signature gatherers on a piece-work or per-signature basis did  
            not impose a severe burden under the First Amendment, and  
            therefore did not unconstitutionally burden core political  
            speech.  The court found that Oregon had an "important  
            regulatory interest in preventing fraud and its appearances in  
            its electoral processes," and that prohibiting the payment of  
            signature gatherers on a per-signature basis was reasonably  
            related to that interest.   Prete v. Bradbury  (2006), No.  
            04-35285.

           6)Labor Law Implications  :  This bill prohibits the payment of  
            individuals on a per-signature or per-piece basis for  
            signature collection on petitions and voter registration.   
            Typically, in California, those individuals who are paid to  
            circulate petitions or register voters on a per-signature or  
            per-piece basis are independent contractors.  However, to the  
            extent that this bill forces individuals who are paid to  
            circulate petitions or register voters to be paid an hourly  
            wage, this bill could also result in these individuals being  
            considered employees under California law.  As such, the  
            individual, corporation, or group paying individuals to  
            circulate petitions may be required to pay minimum wage,  
            provide workers compensation insurance and unemployment  
            insurance, and maintain a payroll system.

           7)Increased Costs  :  As noted in comment #6, this bill may  
            require those individuals or groups paying signature gatherers  
            to provide certain benefits such as unemployment insurance and  
            workers compensation insurance.  This may result in higher  
            costs to those groups that pay individuals to circulate  
            petitions or register voters. In addition, prohibiting payment  
            of individuals on a per-piece or per-signature basis could  








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            increase costs because it may become more difficult to measure  
            the work product of circulators.  Potential increased costs  
            may be partially offset if, by reducing the incentive to  
            submit fraudulent signatures and registrations, this  
            legislation results in paid circulators submitting fewer  
            fraudulent signatures and registrations.

           8)Related Legislation  :  AB 2946 (Leno), includes provisions that  
            would make it a misdemeanor for a person to pay or receive  
            money or any other thing of value based on the number of  
            signatures obtained on a state or local initiative,  
            referendum, or recall petition, based on the number of voter  
            registration affidavits obtained or completed, or based on the  
            number of absentee ballot applications obtained or completed.   
            AB 2946 is set for hearing in the Senate Elections,  
            Reapportionment and Constitutional Amendments Committee on  
            June 28, 2006.  AB 2946 was approved by this committee on  
            April 18, 2006 by a vote of 4-2, and was approved on the  
            Assembly Floor by a vote of 48-32.

          SB 1598 (Bowen), also being heard in this committee today,  
            requires an initiative, referendum, or recall petition to  
            indicate whether it is being circulated by a paid circulator  
            or a volunteer and to include a statement identifying the five  
            largest contributors in support of the measure.

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file.
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094