The Business of Elections Introduction

electionline.org ELECTIONELECTION REFORM REFORM lectionline.org, administered by the Election Reform Information Project, is the e nation’s only nonpartisan, non-advocacy website providing up-to-the-minute news and analysis on election reform. After the November 2000 election brought the shortcomings of the American Briefing August 2004 electoral system to the public’s attention, The Pew Charitable Trusts made a three- INSIDE year grant to the University of Richmond to establish a clearinghouse for election The Business of Elections Introduction ...... 1 reform information. Executive Summary ...... 3 In the aftermath of the 2000 election, voting machines became the Political Activity and Voting Serving everyone with an interest in the issue–policymakers, officials, journalists, schol- focus of efforts to improve the nation’s elections. With the passage of Machine Manufacturers . . . .4 ars and concerned citizens–electionline.org provides a centralized source of data and The Industry ...... 8 the $3.86 billion Help America Vote Act (HAVA), counties and cities information in the face of decentralized reform efforts. Voting System Procurement 12 across the country started to consider replacing older voting machines electionline.org hosts a forum for learning about, discussing and analyzing election Tables ...... 16 with newer technologies. Methodology/Endnotes . . .22 reform issues.The Election Reform Information Project also commissions and conducts Nearly four years later, the results are in. Mindful of Florida’s punch-card research on questions of interest to the election reform community and sponsors con- follies in 2000, many state and local officials acted, and as a result, mil- ferences where policymakers, journalists and other interested parties can gather to share lions of voters will cast electronic ballots in 2004, many for the first time.

ideas, successes and failures. The switch from antiquated and maligned systems to state-of-the- art direct-recording electronic (DRE) systems has been increasingly controversial and divisive. As many now realize, paperless electionline.org DREs eliminate the ballot “middle man” that characterizes Your first stop for election reform information punch cards, optical scanner ballots and old-fashioned, 1101 30th Street, NW hand-counted paper ballots. The DREs themselves dis- Suite 210 Washington, DC 20007 play the ballot, store the vote, and generate the tally— tel: 202-338-9860 all within their sleek cases. fax: 202-338-1720 www.electionline.org With high-tech machines now handling more parts of the election process, the attention of many political observers, activists and voters has turned to the typically- ignored voting industry — the companies that make, market

A Project of the University of Richmond and maintain voting machines nationwide. supported by The Pew Charitable Trusts electionline.org THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

In this eighth edition in elec- localities to make voting easier, line, belying the old adage that 36 “State Plan for the State of Georgia,” July 24, 2003, p. 4. 48 “Agreement Between the County of Santa Clara and Sequoia Voting Systems, Inc. for a Direct Recording Electronic Voting System,” April 37 Ibid, p. 5. tionline.org’s series of Election more accurate and more accessible. “there is no such thing as bad pub- 11, 2003. 38 Lemos, Robert and Festa, Paul. “Fight over e-voting leaves election Reform Briefings, we take an in- The industry, after all, is not like licity,” perhaps leading some compa- plans as casualties,” CNET News.com, May 20, 2004. 49 Hoffman, Ian. “Solano County Cans Diebold System,” ANG Newspapers, May 26, 2004. depth look at the “business of elec- any other. It is concerned with the nies to rethink their investment in 39 Press Release, “Secretary of State Heller Announces Direct Recording Electronic Voting Machine Choice,” December 10, 2003. 50 “Commonwealth of Pennsylvania State Plan,” July 31, 2003, p. 9. tions” – the market for election most important exercise of democ- the election business. 51 electionline.org survey response, October 2003. 40 “Nevada Clerks say New Voting Machines Needed Now,” The goods and services that is both the racy. This Briefing is intended to add Associated Press as published in The Reno Gazette-Journal, Nov. 28, 2003. 52 electionline.org survey response, December 2003. 41 Zetter, Kim. “E-Vote Printers’ High Stakes Test,” Wired, May 27, 53 Carr Smyth, Julie. “To Win Contract, Diebold Offers the State a cause and effect of the Help The machines, much like depth and breadth to the current 2004. Carrot,” The Plain Dealer, August 10, 2003. America Vote Act (HAVA) of 2002. HAVA itself, were intended to focus on election companies by 42 Howard, Tommy. “Possible Suit Against Election Group on Hold,” 54 Seymour, LaChelle. “Company Disputes County's Voting Machine Election companies, once rela- restore voter confidence that was offering information in several areas. Georgetown Times, April 9, 2004. Preference,” The Advocate, November 23, 2003. 43 From telephone interview with Kevin Tyne, Arizona deputy Secretary 55 Mallett, Kent. “County Chooses Voting Machines,” The Advocate, tively anonymous in the pre-2000 shaken after 2000. In the last year, It provides a comprehensive of State, June 8, 2004. January 13, 2004. days when election administration however, the voting machine indus- analysis of the campaign finances 44 Ibid. 56 Ibid. “Voting Machine Contract at Risk,” May 13, 2004. was not a front-page issue, have try as a whole has faced questions and lobbying expenditures of sever- 45 “State Plan to Implement the Help America Vote Act,” June 16, 2003, 57 DuPlessis, Jim. “Contract Protest Rejected,” The State, May 14, 2004. p. 26. 58 Indiana Secretary of State Press Release. “Indiana’s Quest Information found themselves at the center of that seem to have done the opposite. al of the largest companies. election- 46 McCarthy, John. “Electronic Voting on Hold,” The Associated Press, Systems Selected to Create Statewide Voter Registration System,” May debate. Embarrassing internal docu- line.org aims to elevate the level of July 17, 2004. 19, 2004. 47 Selweski, Chad. “Many Communities Won't Have New Voting 59 Saber Consulting Press Release. “Saber Consulting to Build Voter In this environment, voting ments have found their way into the debate both by making it clear that Machines,” The Macomb Daily, May 7, 2004. Registration System,” August 8, 2003. machine companies continue to be media. Campaign donations and lob- political activity is common put on the defensive, forced to justi- bying expenditures – not unusual for throughout the “business of democ- fy not just their products but their businesses of any kind but new to racy” and by placing each compa- way of doing business. the world of election reform – are ny’s individual activity in the overall Many industries and workers’ suddenly a hot topic for these com- context of political activity. unions that have dealings with the panies. Security reports by experts This briefing also details the federal government are politically both inside and outside government history of the election business active. For election machine manu- have challenged DRE security and from the late 19th century to the facturers to do the same is certainly accuracy. Nationally, a call for voter- present, looks at the process by not unique. verified paper audit trail to serve as a which state and local election offi- What is unique, however, is the backup to electronic results, is find- cials procure the companies’ delicate role that voting machines ing receptive ears in state capitals goods and services and examines play in our democracy – particular- from Sacramento to Columbus. In the role of “home-state advan- ly the new machines that were some cases, this new scrutiny has had tage” in procurement. specifically purchased by states and an impact on the companies’ bottom

Election companies, once relatively anonymous in the pre-2000 days when election administration was not a front- page issue, have found themselves at the center of debate.

2 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 23 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

10 Because of a combination of funding delays and concerns about the Methodology security and reliability of DRE voting systems, none of Ohio’s 88 counties will switch to touch-screen voting systems in time for the 2004 elec- Information for “Election Reform Briefing #8: The Business of Executive Summary tion. For more information, see: McCarthy, John. “Ohio counties not Elections,” came from a variety of publicly available sources. They are rushing to replace voting machines,” The Associated Press as reported in detailed by area of interest below: The Cleveland Plain Dealer, July 9, 2004. Vendor Campaign Contributions 11 Secretary Shelley also blocked the use of Sequoia DRE machines (and * Campaign contribution information as of May 31, 2004 was gathered all other DREs in the state) in 2004 pending the adoption of security from reports available on the following websites: Federal Election measures and the inclusion of paper-ballot options for voters in the 10 Commission, PolticalMoneyLine, the Institute on Money in State counties using electronic voting machines. Riverside Registrar Mischelle he once-overlooked election and its executives gave more than million for the purchase of new vot- Politics, the Center for Responsive Politics and individual state websites. Townsend dropped a lawsuit against Shelley and the state’s DRE direc- tives in mid-July. For more information, see: Martin, Hugo and Mehta, industry has become the focus $400,000 to Republican candidates ing machines to replace punch cards Voting Machine Vendor Officers and Directors T Seema, “2 counties, state reach deal on e-voting machines,” The Los * The names of company board members, directors and executives Angeles Times, July 14, 2004. of intense scrutiny in recent years and the party from 2001 to the pres- in the state. between the years 2001 and 2004 were gathered through phone 12 All lobbyist compensation and expenditure reporting include only doc- inquiries, emails, Lexis/Nexis, Dun & Bradstreet reports, Hoovers uments filed electronically and made available online through individual with the passage of the Help America ent, other companies, including While some campaign finance Online, Forbes.com company profiles, Yahoo.com Finance search state websites. Not all states require lobbyists to file reports electronically, engine, individual state corporation and business entity searches, nor do they make the information available online. Federal lobbyist’s Google News search and the websites of Diebold, Inc., Election compensation and expenditure reports are not available online. Principal Vote Act (HAVA) and the promise of Election Systems & Software (ES&S) reformers say any political contribu- Systems and Software, Hart InterCivic, Sequoia Pacific Voting and lobbyists names were gathered from states that provide the informa- Equipment and VoteHere. tion online. nearly $4 billion in funds from and Sequoia Voting Systems gave a tion from a company dealing with Registered State and Federal Lobbyist Expenditures and 13 Smith, Erika. “Diebold Bans Execs’ Political Gifts,” The Akron Beacon- Compensation Journal, June 8, 2004. Washington to purchase new voting slight edge to Democratic candidates something as important as elections * All lobbyist compensation and expenditure reporting includes only doc- 14 Shane III, Leo. “Election machine firm blasted,” The News-Messenger, uments filed electronically and made available online through individual August 28, 2003. machines, software and databases. and party organizations. can raise questions about credibility, state websites. Not all states require lobbyists to file reports electroni- 15 2 United States Code § 441c, 11 C.F.R. § 115.1(d). cally, nor do they make the information available online. Federal lobby- In the past two years, as con- Among other findings from 2001 an organization representing manu- ists’ compensation and expenditure reports are not available online. 16 Rule G-37 Municipal Securities Rulemaking Board. Principal and lobbyists names were gathered from states that provide the information online. 17 Rosenberg, Alec. “E-voting profits no pot of gold,” Tri-Valley Herald, cerns over the security and reliability to early 2004: facturers agreed that while company June 14, 2004. All interviewed sources are listed in the endnotes. Their opinions – and the opinions expressed in secondary source material – do not reflect the 18 Ibid. of direct-recording electronic (DRE) • Ohio-based Diebold Inc. con- contributions could raise concerns, views of the nonpartisan, non-advocacy electionline.org or the Election 19 “Second Quarter Earnings Up at Diebold,” The Assoccciated Press, July Reform Information Project. 21, 2004. voting machines have increased, so tributed $409,170 to Republicans executives and other employees do All questions concerning research and methods should be directed to 20 “The Primary System: History of Voting Technology,” PBS.org Online Sean Greene at [email protected] or Elizabeth Schneider at News Hour, December 13, 2003. too has the public wariness over the and $2,500 to Democrats. not have to,“give up their constitu- [email protected]. 21 Jones, Douglas W. “A Brief History of Voting,” Department of Computer Sciences, University of Iowa, 2001. political activity of companies that • Nebraska-based ES&S and execu- tional rights” because of the industry 22 Dugger, Ron. “Annals of Democracy: Counting Votes,” The New Endnotes Yorker, November 7, 1988. design, manufacture and maintain tives gave $21,900 to Republicans in which they work. The influence 23 From phone interview with Roy Saltman, election technology consult- 1 Diebold Inc. CEO Walden O’Dell’s Republican fundraising letter about ant, June 4, 2004. them. Specifically, many press reports and $24,550 to Democrats. those contributions have on procure- “delivering votes” to Bush is cited repeatedly as a prime example of this 24 Remarks by Professor Stephen Ansolabehere, Massachusetts Institute conflict of interest. Others have gone further and suggested vote-fixing in of Technology to the National Conference of State Legislatures Election and Web sites suggest a link between • Contributions from California- ment is questionable based on some the 2002 Senate election in Georgia (which has never been proven.) A Reform Task Force, April 2001. Available here: http://www.ncsl.org/pro- good summary of these allegations can be found here: Campos, Carlos. grams/legman/elect/taskfc/MIT.htm. DRE manufacturers and the based Sequoia Voting Systems and case studies. “Critics punch at touch-screen security,” Atlanta Journal Constitution, February 14, 2004. 25 Ackerman, Elise. “E-voting regulators often join other side when leaving office,” Mercury News, June 15, 2004. Republican Party, primarily owing to executives totaled $3,500 to Furthermore, despite employing 2 Keating, Dan. “Groups Rally for Voting Receipts,” The Washington Post, July 14, 2004. 26 Sequoia Voting Systems Press Release, “Assistant Secretary of State Joins Sequoia Voting Systems, the Oakland-Based Provider of Touch the fundraising activity and state- Republicans and $18,500 to lobbyists in 10 states, the extent of 3 http://www.fec.gov/pages/vendorslist.htm (Federal Election Screen Voting Systems,” August 22, 2002. Commission list of established vendors of computerized vote tabulation systems as of February 20, 2003.) 27 Schweers, Jeff. “Time short to certify ballot software,” The Las Vegas ments made by the CEO of the Democrats. the “home-state advantage” gained by Sun, May 28, 1996.; also see: Schweers, Jeff. “County adds 536 voting 4 Diebold did not purchase Global Election Systems which became machines,” The Las Vegas Sun, December 17, 1997. Diebold Election Systems until January 2002. However, 2001 numbers largest election system company, • Texas-based Hart InterCivic election machine manufacturers in are included because as early as June 2001 there were reports of Diebold’s 28 For more information, see “About Us” at http://www.unilect.com/. pending purchase of Global Election Systems. For more information, see 29 “Lobbyist made money from touch screen sales,” The Associated Press as Diebold Inc., that he would help and executives donated $3,750 the procurement process in their “Diebold to buy Global Election Systems in stock swap,” Dallas Business printed in The St. Petersburg Times, October 6, 2002. Journal, June 21, 2001. 30 Internet sites tracking conspiracy theories (this info came from “deliver Ohio’s electoral votes” to to Republicans and $2,500 own state is not altogether clear. It 5 Campaign contribution information as of May 31, 2004 for all data in ConspiracyPlanet.com but other sources have the same information) are this report was gathered from reports available on the websites main- quick to point out the estimate made by one anti-paperless voting advo- President George W. Bush. to Democrats. has worked to the advantage of some tained by the Federal Election Commission, PolticalMoneyLine, the cate who noted that the Urosevich brothers’ respective employers make Institute on Money in State Politics, the Center for Responsive Politics the machines and software that will collect about 80 percent of the votes Electionline.org’s research found, In addition, Sequoia and ES&S companies in procuring contracts for and individual state websites that provide campaign contribution infor- cast in the country. mation online. 31 Bolton, Alexander. “Hagel’s ethics filings pose disclosure issue,” The however, that there is no industry- contributed $150,000 to an effort to voter registration databases, but 6 Berr, Jonathan. “Diebold's Voting Machine Expansion Rattles Investors, Hill, January 29, 2003. States,” Bloomberg News, May 21, 2004. 32 “Statement of Avi Rubin of Relationship with VoteHere Inc.,” Media wide partisan trend to political con- pass Proposition 41, California’s clearly not for all voting machine 7 “Diebold stops top executive from making political contributions,” The Advisory, Headlines @ Hopkins, August 17, 2003. Associated Press, June 6, 2004. 33 ITAA Press Release: “Companies Form Election Technology tributions among the largest election Voting Modernization Bond Act of manufacturers seeking to sell their 8 Verton, Dan. "Effort afoot to address e-voting at convention," Council,” December 9, 2003. ComputerWorld, July 26, 2004. 34 ITAA Statement: First Hearing of the U.S. Election Assistance system companies. While Diebold 2002, a bill that provided nearly $200 products in their home states. 9 For more information, see the Web site for California Secretary of Commission, May 5, 2004. State Kevin Shelley. www.ss.ca.gov/elections. 35 Mark, Roy. “E-voting group united on security concerns,” InternetNews.com, December 10, 2003.

22 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 3 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS Political Activity and Voting Machine Hart InterCivic Contributions 2001 CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Manufacturers FARMER, JOHN BOARD OF DIRECTORS NATL. ASSC. OF SMALL BUSINESS INVESTMENT CO. PAC 9-JUL $500 Hart InterCivic Contributions 2002

As concerns over the security time with newer technology. However, Miller believes when CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT HART, DAVID CHAIRMAN BENTZIN, BEN - CANDIDATE FOR SENATE R - TX 24-SEP $250 and accuracy of electronic voting sys- In response to these reports and it comes to others who work for RIORDIAN, RICHARD - MAYOR LOS ANGELES R - CA 29-JAN $500 tems have grown, some manufactur- allegations, plus general skepticism voting machine companies, it’s a CORYN, JOHN SEN. R - TX 12-JUN $1,000 ers of voting systems have also had to about e-voting systems, six election different story. KILCREASE, LAURA BOARD OF DIRECTORS WATSON, KIRK - CANDIDATE FOR ATTNY. GEN. D - TX 14-MAR $1,000 grapple with concerns over their role system companies - Advanced “Why should individuals give 9-AUG $1,000 STOTESBERY, BILL VP MARKETING WATSON, KIRK - CANDIDATE FOR ATTNY. GEN. D - TX 1-OCT $500 and influence in partisan politics. Voting Systems, Diebold Election up their constitutional rights to give REPUBLICAN $1,750 Over the past year, there have Systems, Election Systems & money if they work for a voting DEMOCRAT $2,500 been a variety of reports by the Software, Hart InterCivic, Sequoia machine company? There is noth- TOTAL $4,250 press, individuals and independent Pacific Voting Systems, and Unilect ing intrinsically wrong with individ- organizations into campaign contri- – formed the Electronic Technology uals giving money,” Harris said. Hart InterCivic Contributions 2003 butions made by voting machine Council in December 2003, under Any contribution from mem- CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT vendors and their executives. There the umbrella of the Information bers of such an industry could be LUMMIS, FRED BOARD OF DIRECTORS BUSH-CHENEY 2004 R 23-FEB $2,000 have been suggestions that these Technology Association of America too much, said Meredith McGehee, donations are at best conflicts of (ITAA) to advance the interests of a campaign finance reform advocate. interest and, at worst, signs that these manufacturers. McGehee, president of the Sequoia Voting Systems Contributions 2001 voting machine companies might Harris Miller, president of the Alliance for Better Campaigns, a CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT attempt or already have attempted ITAA, stated he agrees that CEOs group that, like electionline.org, BECKSTRAND, MARK VP NEY, ROBERT REP. R - OH 22-AUG $1,000 to “fix” elections in which their of voting machine companies mak- recieves funding from The Pew SEQUOIA BROWN, WILLIE - CANDIDATE FOR STATE SENATE D - CA 08-NOV $3,000 REBUBLICAN $1,000 products are used.1 ing political contributions “could Charitable Trusts, said the nature of DEMOCRAT $3,000 Some see a direct link between create concerns that the process will the business performed by voting TOTAL $4,000 DRE manufacturers and the be distorted.” machine companies make political Republican Party. Norman J. Sequoia Voting Systems Contributions 2002 Ornstein of the American Partisan Contributions by Company, CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Enterprise Institute told The Board Members and Executives SEQUOIA CALIFORNIA DEMOCRATIC PARTY D 11-JAN $2,500 Washington Post that for some 20012001-2003 - 2003 DAVIS, GRAY GOV. D - CA 07-MAR $2,000 Democrats, the election of 2000 Contribution Summary FIREBAUGH, MARCO - ASSEMBLY MEMBER D - CA 18-JUL $5,000 SHELLEY, KEVIN SOS D - CA 15-MAR $2,000 created, "enormous unease and dis- $200,000 YES ON PROP. 41 - VOTING MODERNIZATION ACT 25-JAN $100,000 $179,233 REPUBLICANREPUBLICAN trust in the democratic process. DEMOCRAT DEMOCRATIC STATE CENTRAL COMMITTEE OF CA D 11-JAN $2,500 DEMOCRAT OTHER SAN JOSE SILICON VALLEY CHAMBER OF COMMERCE 19-AUG $5,000 You've triggered not very latent sus- OTHER picions and paranoia among BECKSTRAND, MARK VP TAFT, BOB GOV. R - OH 28-MAY $2,500 $150,000 REPUBLICAN $2,500 Democrats and liberals more than DEMOCRAT $14,000 $126,137 in conservatives.”2 $121,500 OTHER $105,000 The now-infamous quote by $105,950 TOTAL $121,500 Walden O’Dell, CEO of Ohio-based $100,000 $85,650 Diebold, Inc. promising to “deliver” Sequoia Voting Systems Contributions 2003 Ohio’s electoral votes to President CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Bush has become ubiquitous in press SEQUOIA DIAZ, MANNY - ASSEMBLY MEMBER D - CA 31-JAN $1,500 $50,000 SOUTH BAY AFL-CIO LABOR COUNCIL ISSUES 03-OCT $5,000 coverage of the issue. Those who SANTA CLARA & SAN BENITO COUNTIES 31-JAN $1,000 have charged the 2000 election was BUILDING CONSTRUCTION TRADES COUNCIL $10,000 $8,100 $6,800 SF LABOR COUNCIL & NEIGHBOR IND. EXPENDITURE 10-OCT $600 “stolen” point to O’Dell and $4,000 $4,250 $500 $2,000 Diebold as proof that the same will 0 DEMOCRAT $1,500 2001 2002 2003 2001 2002 2003 2001 2002 2003 2001 2002 2003 OTHER $6,600 DIEBOLD SEQUOIA ES&S HART INTERCIVIC happen again in 2004, except this TOTAL $8,100

4 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 21 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

ES &S Contributions 2001 two key differences between Partisan Contributions Summary Diebold and its competitors: scope CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT 20012001-2003 - 2003 Contribution Summary of operations and transparency. ES&S MARION COUNTY DEM. CENTRAL COMMITTEE D - IN 31-JUL $450 Scope of operations. Unlike its MADISON COUNTY DEM. CENTRAL COMMITTEE D - IL 24-JAN $250 DIEBOLD ES&S HART INTERCIVIC SEQUOIA rivals Election Systems & Software SENATE DEM. 2002 OF CT. D 21-JUL $250 $2,500 CARBULLIDO, KEN DIRECTOR VIGIL-GIRON, REBECCA - SOS D - NM 13-DEC $2,500 $3,500 (ES&S), Hart InterCivic and Sequoia GROH, JOHN DIRECTOR NRCCC R 13-NOV $300 Voting Systems, companies that con- MCCARTHY, MICHAEL DIRECTOR JOHANNS, MIKE GOV. R - NE 5-JUN $1,000 $21,900 $2,500 $3,750 $24,550 centrate solely on the manufacturing BALLENGER, JEFFREY - CANIDATE FOR CONGRESS R - IA 14-NOV $250 $409,170 $18,500 SANDHILLS PAC R - NE 29-AUG $5,000 and distribution of voting machine REPUBLICANS $6,550 software and systems, Diebold Inc. DEMOCRATS $3,450 TOTAL TO PARTIES engages in multiple business activi- TOTAL $10,000 REPUBLICAN $48,050 ties with the majority of revenue DEMOCRAT stemming from the sale and mainte- REPUBLICAN ES &S Contributions 2002 DEMOCRAT nance of automatic teller machines $438,320 6 CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT worldwide. Consequently, any analy- ES&S GALE, JOHN - SOS R - NE 05-SEP $500 sis of Diebold’s political activity that 16-SEP $500 associates every contribution with the SHELLEY, KEVIN - SOS D - CA 27-FEB $10,000 company’s voting machine business 28-JUN $10,000 YES ON PROP 41 - VOTING MODERNIZATION N/A 25-FEB $50,000 activity especially troubling. past three years. runs the risk of misleading the read- HETTEL, JOE - LASALLE COUNTY STATE’S D - IL 12-AUG $550 “We all know that democracy Contrary to many conspiracy er. ATTORNEY. CANDIDATE largely depends on the credibility of theories that align voting machine Transparency. Moreover, unlike ABELL, MARSHA - CANDIDATE FOR HOUSE R - IN 12-AUG $600 its rivals, Diebold is a public com- HOUSE REP. CAMPAIGN COMMITTEE OF CT R - CT 06-FEB $250 the process,” she said. “As you companies with the Republican Party, WA STATE REP. PARTY R - WA 17-OCT $500 know, there were rumors that the voting machine companies are prag- pany and as such is much more DONESON, LOUIS FIELD REP. OHIO STATE REPUBLICAN PARTY R - OH 04-NOV $750 machines were going to be all matic in their political contributions. transparent in terms of corporate MCCARTHY, MICHAEL DIRECTOR HAWKS, HOWARD - BOARD OF REGENTS U OF NE N/A 09-APR $1,000 rigged because [O’Dell] was a Bush In California, a state largely leadership. This, in turn, makes it THUNE, JOHN - CANDIDATE FOR SENATE R - SD 21-AUG $1,000 AMERICAN AGRISURANCE ASSOCIATION PAC N/A 07-JAN $5,000 contributor. When you get to this dominated by Democrats, voting easier to identify and aggregate SANDHILLS PAC R - NE 29-APR $5,000 area about the integrity of elections, machine manufacturers have given contributions associated with the REPUBLICAN $9,100 it’s very important that there be no to Democratic candidates. Similarly, company. Also, the company’s DEMOCRAT $20,550 broader scope means that not all OTHER $56,000 conflict of interest and no appear- in Republican-controlled Ohio, the TOTAL $85,650 ance of conflict of interest.” GOP has been, by and large, the Diebold officers and directors who primary recipient of voting machine have made political donations have Partisan Giving company contributions. a hand in the operation of the elec- ES &S Contributions 2003 Previously dominated by a Ohio-based Diebold, Inc. tion systems division – in fact, many CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT handful of companies, the market (which owns Diebold Election play dual roles in the company’s ES&S GREATER INDIANAPOLIS REP. FINANCE COMMITTEE R - IN 29-AUG $1,250 for electronic voting machines has Systems) is most frequently cited as activities. In addition, many of the HETTEL, JOE - LASALLE COUNTY STATE'S D - IL 05-AUG $550 expanded to 19 known vendors showing partisan bias in its political contributions are made by directors ATTORNEY. CANDIDATE competing for multi-million dollar MCCARTHY, MICHAEL DIRECTOR SANDHILLS PAC R - NE 17-OCT $5,000 giving, and the numbers bear this not involved in the day-to-day 3 REPUBLICAN $6,250 state and local contracts. out. Figures show that the company operation of the comapny. DEMOCRAT $550 electionline.org’s analysis suggests was the largest contributor of the TOTAL $6,800 Even Distribution that as the manufacturers joust for voting machine vendors to the Diebold aside, it appears that market share around the country, Republican Party, politicians and political contributions by the there is no industry-wide partisan candidates between 2001 and early trend to political contributions. other voting machine manufactur- 2004.4 During this period, contribu- And, in fact, these contributions ers are relatively small and fairly tions from Diebold and its executives might not have been that significant evenly distributed between the two totaled $409,170 for Republicans in the burgeoning election machine major parties. and $2,500 for Democrats.5 market that has developed in the Nebraska-based ES&S and its Yet, these large numbers mask executives made nearly equal dona-

20 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 5 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS tions to Republicans and $200 million bond for the purchase Sequoia’s bottom line. Diebold Contributions 2003 Democrats. Republicans received of new voting systems. Nearly two- Was it money well spent? With $21,900 and Democrats $24,550. thirds of voters had previously been Shelley’s demand for voter-verified CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Contributions from California- using punch-card machines. paper audit trails, he has often been at BUCCI, DAVID SENIOR VP VOINOVICH, GEORGE SEN. R - OH 29-JUN $1,000 BUSH, GEORGE W. R 26-JUN $2,000 based Sequoia Voting Systems Sequoia and ES&S were the top odds with DRE manufacturers, who BOCKIUS, LOUIS V. III BOARD OF DIRECTORS STARK COUNTY REPUBLICAN PARTY R - OH 10-FEB $1,000 totaled $3,500 to Republicans and two contributors in the effort to pass insist their products are safe and reli- 02-APR $1,000 $18,500 to Democrats. Texas-based Proposition 41, donating $100,000 able without paper receipts. Shelley BUSH, GEORGE W. R 24-JUN $2,000 CONNOR, CHRISTOPHER BOARD OF DIRECTORS VOINOVICH, GEORGE SEN. R - OH 13-AUG $1,000 Hart InterCivic made the smallest and $50,000 respectively. Their has particularly had public differences BUSH, GEORGE W. R 26-JUN $2,000 contributions – totaling just over efforts – which funded advertise- with Riverside County registrar DEWINE, MIKE SEN. R - OH 23-JUL $2,000 $6,000 with $3,750 to Republicans ments, a Web site and other activities Mischelle Townsend, one of the CARE PAC R 29-DEC $500 and $2,500 to Democrats. – helped to nudge the Act over the industry’s most vocal backers of DREs MONTGOMERY, BETTY - AUDITOR R - OH 19-NOV $500 DETERS, JOSEPH - TREASURER R - OH 25-SEP $250 11 Furthermore, political contribu- top in the March 2002 primary. It nationally, and a Sequoia customer. CROWTHER, JOHN M. CIO BUSH, GEORGE W. R 27-AUG $2,000 tions by voting machine manufac- won with 51.6 percent of the vote on D'AMICO, THOMAS R. VP BUSH, GEORGE W. R 03-SEP $2,000 turers to political parties and candi- the strength of strong majorities in Lobbying VOINOVICH, GEORGE SEN. R - OH 21-JUN $500 Vendors have also paid for lob- DETTINGER, WARREN W. VP VOINOVICH, GEORGE SEN. R - OH 25-JUN $500 dates could drop precipitously in the just a few populous counties, includ- bying efforts at both the state and DIMMITT, WILLIAM R. SERVICE TECH. NATIONAL REP. CONGRESSIONAL COMMITTEE R 02-APR $200 near future. Diebold decided in June ing Los Angeles, San Francisco and FRAZITTA, BART VP BUSH, GEORGE W. R 26-JUN $1,000 federal level. 2004 to ban top executives from Marin.9 29-SEP $1,000 Analysis of these reports is making any political contributions.7 But the influence that voting GESWIN, GREGORY T. SENIOR VP & CFO VOINOVICH, GEORGE SEN. R - OH 30-JUN $2,000 more problematic, given the wide BUSH, GEORGE W. R 26-JUN $2,000 According to a company machine companies buy with their range of state lobbying disclosure HILLOCK, JENNIFER L. BUSH, GEORGE W. R 27-AUG $2,000 spokeswoman, ES&S has a policy contributions is not at all clear. HILLOCK, MICHAEL J.. INTERNATIONAL PRES. VOINOVICH, GEORGE SEN. R - OH 21-JUN $2,000 requirements. For example, many against contributions by employees BUSH, GEORGE W. R 26-JUN $2,000 lobbyist reports analyzed for this in the company's name.8 This, how- Home-State Giving HOOVER, TIMOTHY EMPLOYEE SCHURING, KIRK REP. R - OH 02-OCT $50 study did not require lobbyists to INGRAM, LARRY D. VP BUSH, GEORGE W. R 15-SEP $1,000 ever, is offset by federal and state If political contributions were exclusively to curry favor among include targeted officials or legisla- 26-JUN $1,000 requirements that donors disclose LAUER, JOHN N. BOARD OF DIRECTORS VOINOVICH, GEORGE SEN. R - OH 09-AUG $2,000 tion, but rather stated that generally their employers. state voting decision-makers, the 18-NOV $1,000 both House and Senate officials MAHONEY, ROBERT CHAIMAN EMERITUS CARE PAC R 30-NOV $250 While other companies have question arises: why did Diebold give so much money in Ohio, where were lobbied.12 VOINOVICH, GEORGE SEN. R - OH 29-JUN $1,000 not faced the same criticism as STARK COUNTY REPUBLICAN PARTY R - OH 13-JAN $1,000 only a handful of counties are Moreover, lobbying expenses, Diebold for political involvement, BUSH, GEORGE W. R 06-JUN $2,000 compensation and expenditures var- the decision by the company could replacing voting systems this year, O'DELL, WALDEN PRES. & CEO VOINOVICH, GEORGE SEN. R - OH 25-JUN $2,000 ied from vendor to vendor with BUSH, GEORGE W. R 12-JUN $4,000 inspire others in the industry to stay and none in Maryland and Georgia, two states that decided to purchase heavier activity in states considering 08-AUG $2,000 out of elections, other than with ROSENBERG, WILLIAM VP BUSH, GEORGE W. R 19-SEP $2,000 multi-million dollar statewide vot- larger contracts, such as California, their products. SCHEURER, CHARLES B. VP VOINOVICH, GEORGE SEN. R - OH 21-JUN $500 ing systems from the company?10 New York and Ohio. BUSH, GEORGE W. R 27-AUG $2,000 Case Study in Influence: It could have to do with Nevertheless, even a cursory SCHURING, KIRK REP. R - OH 05-JUN $100 California’s Bond Diebold’s other business, banking, look at state lobbying reports sug- OELSLAGER, SCOTT SEN. R - OH 28-OCT $100 SWIDARSKI, THOMAS SENIOR VP BUSH, GEORGE W. R 09-JUL $2,000 There have been instances and because of its relationship with gests that companies are actively TIMKEN, WILLIAM R. BOARD OF DIRECTORS DEWINE, MIKE SEN. R - OH 11-MAR $1,000 where political activity by voting top leaders in its home state, Ohio. engaged in lobbying as part of their VOINOVICH, GEORGE SEN. R - OH 21-JUN $2,000 machine vendors has had an impact Other companies, including Hart business efforts. MCCOLLUM, BILL 2004 CAMPAIGN R - FLA. 27-AUG $1,000 NATIONAL REP. SENATORIAL CAMPAIGN R 09-JUN $8,500 on policy. The 2002 effort to secure InterCivic, ES&S and Sequoia, have Between 2001 and 2003 20-JUN $8,500 public funding for the purchase of similarly made contributions to Diebold, ES&S, Hart InterCivic, CARE PAC R 31-DEC $5,000 voting systems to replace punch hometown candidates, political Sequoia and VoteHere engaged lob- STARK COUNTY REPUBLICAN PARTY R - OH 20-FEB $2,000 cards in California attracted the action committees, or both. byists in 21 states and several at the 24-OCT $1,500 BUSH, GEORGE W. R 02-JUN $2,000 attention and support of two of the Sequoia, for example, con- federal level. REPUBLICAN NATIONAL COMMITTEE R 22-DEC $20,000 “big five” voting machine compa- tributed $2,000 to Secretary of ES&S employed the most lob- UROSOVICH, ROBERT PRESIDENT DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE D 18-DEC $2,500 nies: Sequoia and ES&S. State Kevin Shelley’s election efforts byists at the state level with lobby- REPUBLICAN $105,950 The Voting Modernization in 2002. As the state’s top election ists registered in 14 states from DEMOCRAT $2,500 TOTAL $108,450 Bond Act of 2002, or Proposition official, Shelley is directly responsi- January 2001 to June 2003. ES&S 41, would allow the state to secure a ble for making decisions that impact spent a total of $100,000 on com-

6 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 19 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

Diebold Contributions 2002 Vendors Face Growing Scrutiny Over Contributions CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Political activity by corporations party, election issue or cause, or par- technology context. BUCCI, DAVE SENIOR VP TAFT, BOB GOV. R - OH 05-OCT $250 is nothing new to the American ticipate in any political activities, A third approach is to limit BOCKIUS, LOUIS V. III BOARD OF DIRECTORS STARK COUNTY REPUBLICAN PARTY R - OH 05-FEB $1,000 SCHURING, KIRK REP. R - OH 06-MAY $2,500 political scene. While reports of except for voting." The change also procurement activities by compa- 04-JUN $2,500 campaign contributions and lobbying applies to all employees and execu- nies making political contributions. TAFT, BOB GOV. R - OH 07-JUN $2,500 activity by voting equipment manu- tives of Diebold Election Systems.13 One example is the U.S. Municipal WYOMING REPUBLICAN PARTY R - WY 01-MAY $200 CONNOR, CHRISTOPHER M. BOARD OF DIRECTORS VOINIVICH, GEORGE SEN. R - OH 21-AUG $1,000 facturers represent a new develop- The policy was adopted by the Securities Rulemaking Board’s Rule TAFT, BOB GOV. R - OH 27-SEP $500 ment in the implementation of the company’s board of directors after G-37, which seeks to combat the HOUSEHOLDER, LARRY REP. R - OH 10-MAY $1,000 Help America Vote Act (HAVA), the the controversy generated by practice of “pay to play” in the MONTGOMERY, BETTY - AUDITOR R - OH 06-APR $250 10-MAY $1,000 fact that profit-making enterprises Walden O’Dell, Diebold’s CEO, in municipal bond industry by prohibit- STRATTON, EVELYN - SUPREME COURT JUSTICE R - OH 19-JUL $1,000 are willing to invest to influence 2003, when he made the now-infa- ing certain municipal finance per- 12-SEP $500 DETTINGER, WARREN VP TAFT, BOB GOV. R - OH 05-OCT $250 public policy is not surprising. mous pledge to “[help] deliver sonnel and their employers from FRANCIS-VOGELSANG, CHAREE VP & SEC SCHURING, KIRK REP. R - OH 24-SEP $70 The growing scrutiny of such Ohio’s electoral votes” to President seeking underwriting business from FRAZZITTA, BARTHOLOMEW VP TAFT, BOB GOV. R - OH 05-OCT $250 activity, however, is likely to trigger a Bush in a fundraising letter.14 any jurisdiction within two years of GESWIN, GREG SENIOR VP & CFO TAFT, BOB GOV. R - OH 05-OCT $2,000 INGRAM, LARRY VP SCHURING, KIRK REP. R - OH 24-SEP $35 variety of responses that act to put Another approach is for the making a political contribution to an KRAKORA, KEVIN VP SCHURING, KIRK REP. R - OH 24-SEP $35 checks on political giving by election affected governments to prohibit official with the authority to influ- LAUER, JOHN N. BOARD OF DIRECTORS VOINIVICH, GEORGE SEN. R - OH 21-AUG $1,000 companies – requirements that political contributions. Federal law ence the choice of underwriter.16 REGULA, RALPH S. REP. R - OH 13-AUG $250 REPUBLICAN SENATE CAMPAIGN COMMITTEE OF OH R - OH 07-JUN $500 could alter the relationships prohibits political contributions by Although there are no current TAFT, BOB GOV. R - OH 21-MAR $1,000 between voting equipment manufac- federal contractors, although this laws with similar reach in the voting 17-SEP $250 OH HOUSE REPUBLICAN CAMPAIGN COMMITTEE R - OH 10-JUN $500 turers and their clients in state and prohibition does not apply to state technology industry, such a narrow, STRATTON, EVELYN - SUPREME COURT JUSTICE R - OH 19-FEB $1,000 local government. and local programs supported by targeted reaction to the growing MAHONEY, ROBERT CHAIRMAN EMERITUS STARK COUNTY REPUBLICAN PARTY R - OH 09-JAN $1,000 One response to public outcry federal funds.15 political activity by voting equipment OELSLAGER, SCOTT REP. R - OH 16-SEP $100 OHIO REP. PARTY STATE CANDIDATE FUND R - OH 28-MAR $1,000 about corporate political contribu- Similarly, many state and local manufacturers is certainly possible as 17-OCT $1,000 tions is for companies simply to stop laws prohibit contributions by com- the relationship of vendors and poli- TAFT, BOB GOV. R - OH 13-MAY $2,500 making them.This is the approach panies doing business with their cymakers comes into sharper focus. O'DELL, WALDEN PRES. & CEO TAFT, BOB GOV. R - OH 09-MAY $2,500 SCHEURER, CHARLES VP TAFT, BOB GOV. R - OH 05-OCT $500 adopted by Ohio-based Diebold Inc., jurisdictions. Some jurisdictions go Whatever the eventual TIMKEN, WILLIAM R. BOARD OF DIRECTORS RNC REPUBLICAN NATIONAL STATE ELECTIONS CMT. R - OH 10-OCT $40,000 parent company of Texas-based further to prohibit contributions by response, if any, of policymakers to BLACKWELL, KENNETH SOS R - OH 09-OCT $2,500 DETERS, JOSEPH - TREASURER R - OH 11-OCT $2,500 Diebold Election Systems, which companies seeking to obtain pro- the political activity of election ven- O'CONNOR, MAUREEN - STATE SUPREME COURT R - OH 18-OCT $2,200 recently announced that all execu- curement contracts. As HAVA dors, it is certain that scrutiny of OH REPUBLICAN CAMPAIGN COMMITTEE R - OH 05-DEC $3,000 tives with oversight of the elections implementation continues and pro- such activity by advocates and the REPUBLICAN SENATE CAMPAIGN COMMITTEE OF OH R - OH 19-NOV $3,000 SIMON, BILL - CANDIDATE FOR GOV. R - CA 30-JUN $1,000 division would be prohibited from curement activity accelerates, it will general public will be another key SCHURING, KIRK REP. R - OH 06-MAY $2,500 making,“contributions to, directly or be interesting to see if and how consideration in the ongoing imple- 24-MAY $2,500 indirectly, any political candidate, such laws are enforced in the voting mentation of HAVA nationwide. STRATTON, EVELYN - SUPREME COURT JUSTICE R - OH 10-OCT $2,200 OH REPUBLICAN PARTY STATE CANDIDATE FUND R - OH 03-MAY $16,500 TAFT, BOB GOV. R - OH 15-MAY $2,500 pensation and expenditures for fed- and Ohio. tion involving election reform, VANCE, WES PRES. NORTH AMERICA TAFT, BOB GOV. R - OH 13-MAY $2,500 eral lobbying activities. Hart InterCivic had representa- military voting, election system SCHURING, KIRK REP. R - OH 24-SEP $70 Diebold, with lobbyists operat- tives in Ohio and Texas, and and standards and online voting WALLACE, HENRY D.G. BOARD OF DIRECTORS MONTGOMERY, BETTY - AUDITOR R - OH 03-MAY $48 DIEBOLD INC. REPUBLICAN NATIONAL COMMITTEE R 08-FEB $25,000 ing in 10 states, paid $50,000 in VoteHere engaged lobbyists in its including the Ney-Hoyer election 01-MAY $15,000 2003 for federal lobbying activities home state of Washington. reform bill (H.R. 3295), the Dodd 19-SEP $25,000 and Sequoia hired lobbyists in nine At the federal level, VoteHere reform bill (S. 565), and the CUPAC 17-JUN $100 states and none at the federal level. spent $620,000 from January 2001 Department of Defense authoriza- ROSEMONT VOTERS LEAGUE N/A 29-JAN $1,075 REPUBLICAN $178,158 Diebold, ES&S, and Sequoia to December 2002. The majority tion and appropriations bills. OTHER $1,075 all had lobbyist representatives in of the money went toward office TOTAL $179,233 Arkansas, Louisiana, New York operations and support of legisla-

18 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 7 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS The Industry Federal Lobbyist Expenditures PRINCIPAL FEDERAL LOBBYIST DATES COMPENSATION EXPENSES TOTAL DIEBOLD DAVID DISTEFANO JAN. - JUNE 2003 $30,000 $0 JULY - DEC. 2003 $20,000 $0 TOTAL $50,000 $0 $50,000 ES&S SUSAN PETNIUNAS JAN. - JUNE 2001 $20,000 $0 Voting System The Gold Rush These money shortages at the JULY - DEC. 2001 $20,000 $0 Manufacturers Then and that Wasn’t local level, combined with lingering JAN. - JUNE 2002 $20,000 $0 JULY - DEC. 2002 $20,000 $0 Now – A Brief History With federal money, state questions about the security and JAN. - JUNE 2003 $20,000 $0 Until recently, few people in matching funds and strong local reliability of paperless voting sys- TOTAL $100,000 $0 $100,000 the country, other than those who interest nationwide to avoid “anoth- tems, contributed to growing finan- VOTEHERE, INC. JENNIFER CURLEY JAN. - JUNE 2001 $80,000 $0 purchased and maintained voting er Florida,” the election system cial troubles for voting system man- JULY - DEC. 2001 $0 $120,000 JAN. - JUNE 2002 $0 $220,000 machines, paid any attention to the market in recent years has been ufacturers – troubles that are begin- JULY - DEC. 2002 $0 $140,000 companies that made those systems. transformed from a little-noticed ning to show up on the bottom line. BARRY RHOADS JAN. - JUNE 2002 $60,000 $0 Prior to 2000, few even considered industry dominated by a few compa- Sequoia Pacific Voting Systems, TOTAL $140,000 $480,000 $620,000 what they voted on, much less who nies into a cutthroat business com- the second largest DRE vendor in manufactured the lever, punch-card plete with lawsuits, front-page news the country, reported sales up 75 Diebold Contributions 2001 or optical-scan machine on which reports and public relations blitzes – percent in 2003, but margins fell, they cast their ballots. including newspaper advertisements causing a $3.5 million operating CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT AMES-FORSYTHE, ANNE PAWLENTY, TIM GOV. R - MN 20-NOV $125 The rush to replace maligned, and even highway billboards. loss. Its parent company, London- BOCKIUS, LOUIS V. III BOARD OF DIRECTORS STARK COUNTY REPUBLICAN PARTY R - OH 12-FEB $1,000 older voting technologies has creat- After the 2000 election, it based De La Rue, could dump the TAFT, BOB GOV. R - OH 21-JUN $2,500 ed a highly competitive and poten- seemed clear that punch-card and company, reported one story.17 CONNOR, CHRISTOPHER BOARD OF DIRECTORS MONTGOMERY, BETTY - AG R - OH 19-MAR $250 16-APR $250 tially lucrative market for compa- lever voting systems would be The largest DRE vendor, 17-JUL $100 nies seeking to sell upgraded voting phased out across the country. The Diebold Election Systems has suf- TAFT, BOB GOV. R - OH 14-SEP $1,000 systems to states and localities. Help America Vote Act (HAVA) of fered even more, with operating 05-NOV $1,000 For consumers – states, localities 2002 promised the states $325 mil- profits plummeting 32 percent in DETERS, JOSEPH - TREASURER R - OH 13-JUN $100 DETTINGER, WARREN VP TAFT, BOB GOV. R - OH 20-NOV $1,000 and the voters who will use the lion to replace or upgrade these vot- 2003 while revenues fell 10 percent GESWEIN, GREGORY SENIOR VP & CFO TAFT, BOB GOV. R - OH 25-JUL $2,500 18 newer systems to cast ballots – the ing systems, and mandated the pur- to $100 million. However, the MAHONEY, ROBERT CHAIRMAN EMERITUS VOINOVICH, GEORGE SEN. R - OH 23-MAR $250 market has driven innovation, result- chase of at least one voting machine company began to show signs of a RNC STATE ELECTIONS COMMITTEE R - OH 11-OCT $2,000 ing in easy-to-use ballot formats that per polling place that was accessible recovery in 2004 with revenues STARK COUNTY REPUBLICAN PARTY R - OH 24-JAN $1,500 TAFT, BOB GOV. R - OH 28-JUN $2,000 can allow for multiple languages and for voters with disabilities. from election systems surging from O'DELL, WALDEN PRES. & CEO RNC STATE ELECTIONS COMMITTEE R - OH 30-JAN $3,950 character sets, accessible voting for The once-stagnant election $7.7 million to $27.1 million.19 14-FEB $2,015 voters with certain disabilities, porta- market seemed to resemble a gold VOINOVICH, GEORGE SEN. R - OH 16-AUG $500 bility, flexibility, quicker tabulations, rush, with the lure of nearly $4 bil- A History of Voting TAFT, BOB GOV. R - OH 02-JUL $2,500 Machine Companies TIMKEN, WILLIAM R. BOARD OF DIRECTORS RNC STATE ELECTIONS COMMITTEE R - OH 24-JAN $5,022 and vastly diminished rates of lion in federal funds for states to 26-APR $30,000 The companies that sell the new uncountable ballots. buy new election equipment. NRCCC - NON FEDERAL #2 R 25-APR $5,000 According to the Federal The rush failed to pan out for machinery have faced a difficult road OH REP. PARTY CANDIDATE FUND R - OH 06-JUN $16,500 SCHURING, KIRK REP. R - OH 05-JUN $2,000 Election Commission, 19 compa- many companies – at least in the at times. Manufacturers have both injected themselves into the world of TAFT, BOB GOV. R - OH 21-JUN $2,500 nies produce, “computerized vote immediate aftermath of the 2000 PETRO, JIM - AUDITOR R - OH 28-DEC $2,500 tabulation systems.” A handful were election. HAVA funds were politics and found themselves the BLACKWELL, KENNETH SOS R - OH 20-DEC $2,500 formed after the troubled 2000 delayed, held up by the late subject of intense criticism, conspira- SIMON, BILL - CANDIDATE FOR GOV. R - CA 12-SEP $1,000 cy theories and government scrutiny. SCHEURER, CHARLES VP TAFT, BOB GOV. R - OH 18-JUN $500 election, started by entrepreneurs appointment of the Election VANCE, WESLEY PRES. NORTH AMERICA VOINOVICH, GEORGE SEN. R - OH 16-AUG $500 Voting machines began replac- who predicted a rich market as Assistance Commission and budget TAFT, BOB GOV. R - OH 02-JUL $2,500 states phased out punch cards and complications. The authorized ing paper ballots in the first half of DIEBOLD INC. REPUBLICAN NATIONAL COMMITTEE R 06-MAR $5,000 lever systems in favor of optical $3.86 billion has still not been fully the 20th century, when the lever 05-SEP $25,000 machine began to be used in a num- ROSEMONT VOTERS LEAGUE N/A 31-JAN $1,075 scan and direct-recording electronic appropriated, nearly four years after REPUBLICAN $125,062 ber of states. The mechanical lever (DRE) voting machines. the 2000 election. OTHER $1,075 system, invented in 1892, was TOTAL $126,137

8 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 17 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

Lobbying Expenditures designed to make voting secret, dragged down by little chads. “You have to remember that simple and less susceptible to fraud. A New Yorker Magazine article IBM had almost no negative publici- STATE CLIENT LOBBYIST DATES COMPENSATION EXPENSES TOTAL But the system later proved to be about voting systems concerns pub- ty at the time, so the fact that there CALIFORNIA DIEBOLD ROSE & KINDELL APRIL - JUN 2002 $10,000 $0 JULY - SEPT. 2002 $15,020 $0 vulnerable to tampering by those lished in 1988 detailed some of IBM’s were questions about the Votomatic 20 JULY - SEPT 2003 $7,500 $0 with access to the vote tallies. troubles. During California’s June [punch-card] system seemed to be OCT. - DEC. 2003 $22,560 $0 By the 1930s, lever machines 1968 primary, punch cards could not quite important to them,” said Roy JAN. - MARCH 2004 $15,000 $9,015.58 were ubiquitous, but not without be brought into a tabulating center Saltman, an independent consultant TOTAL $70,080 $9,016 $79,096 ES&S CAPITAL CONNECTION JAN. - MARCH 2004 $15,000 $0 their problems. Newer technology – because of the nearby shooting of on election policy and technology. TOTAL $15,000 $0 $15,000 punch-card machines – was adopted Sen. Robert F. Kennedy. “Reporters “There’s a lot of downside and risk CONNECTICUT SEQUOIA GAFFNERY, BENNETT & ASSC. 2001 $74,200 $0 by many jurisdictions in the 1960s. were worried about the delay and in this industry. The risk of negative 2002 $42,400 $0 Punch cards allowed faster tabula- officials at IBM began to wonder seri- publicity is strong. If it’s only a small 2003 $46,050 $0 TOTAL $162,650 $0 $162,650 tions and permitted an examination ously about the election business, part of your business, why would INDIANA ES&S ICE MILLER JAN. - JUNE 2001 $12,000 $82.20 of each individual vote; ironically, a which, comparatively speaking, was you let yourself be involved if it’s BINGAM MCHALE JULY - DEC. 2001 $30,000 $591.14 feature memorably displayed in providing only a small profit.”22 not important for your bottom line? JAN. - JUNE 2002 $15,000 $293.43 23 JULY - DEC. 2002 $15,318 $775.73 South Florida in November 2000. Problems continued that year, IBM did right – they got rid of it.” TOTAL $72,318 $1,742.50 $74,061 Punch cards also marked the entry the article stated, when during the With IBM’s departure, the elec- NEW YORK SEQUOIA BULEY PUBLIC AFFAIRS JAN. - JUNE 2003 $45,000 $12,895 of the first significantly-sized com- November election, tabulating tion business was predominantly left JULY - DEC. 2003 $45,000 $2,461 pany into the voting system market. machines for precincts in Missoula, to small companies that dealt exclu- JAN - FEB. 2004 $15,000 $16 TOTAL $105,000 $15,372 $120,372 In 1965, IBM – a company that O'DWYER & BERNSTIEN JULY - DEC. 2003 $60,000 $25 had made punch cards for decades TOTAL $60,000 $25 $60,025 before – purchased Harris ES&S BULEY PUBLIC AFFAIRS ??? 2002 $36,000 $14,618 Votomatic, the company that had TOTAL $36,000 $14,618 $50,618 The same fear of technology, suspicion been producing the punch-card DAVIDOFF & MALITO JULY - DEC. 2003 $60,000 $3,822 machines for localities in Oregon, of programmers and concerns about the JAN. - FEB. 2004 $20,000 $1,679 Georgia and California.21 It did not, TOTAL $80,000 $5,501 $85,501 inability to discern voter intent dogged DIEBOLD GREENBERG TRAURIG JAN. - JUNE 2003 $75,000 $0 however, take long for Big Blue to JULY - DEC. 2003 $75,000 $0 exit the market four years later. IBM as much 35 years ago as it does JAN. - FEB. 2004 $25,000 $0 What led IBM to leave the MARCH - APRIL 2004 $25,000 $0 election business is strikingly simi- Diebold, ES&S, Sequoia and other manu- TOTAL $200,000 $0 $200,000 lar to the controversies modern vot- facturers in 2004. ing machine manufacturers face. In fact, the same fear of technology, suspicion of programmers and con- Montana mistakenly counted ballots sively with elections, or in some cerns about the inability to discern cast for Hubert Humphrey for cases, printing and forms. Big Blue’s voter intent dogged IBM as much Richard M. Nixon and vice-versa. punch-card business spun off two 35 years ago as it does Diebold, But, the article continued, the companies, Electronic Voting ES&S, Sequoia and other manufac- defining moment that convinced Machine (E.V.M.) and Computer All lobbyist compensation and expenditure reporting includes only documents filed electronically and made available online turers in 2004. the company to leave the business Election Systems (C.E.S.) The through individual state websites. Not all states require lobbyists to file reports electronically, nor do they make the was an article in a suburban other names in elections through- information available online. Federal lobbyists’ compensation and expenditure reports are not available online. Principal Computer Giant Chicago newspaper suggested that out the past four decades were and lobbyists names were gathered from states that provide the information online. Finds Great Risks, IBM had entered the election busi- hardly household: Cronus and R. F. Few Rewards ness so that Thomas Watson, the Shoup, to name a few. Meanwhile, The trouble with punch cards company’s chairman, “would better-known computer firm Unisys started in the Golden State in 1968. become president.” developed the optical scanner, but According to one former IBM sales- That might have solidified a promptly left the election business man who sold the company’s decision to leave the market that because it was not profitable.24 Votomatic punch cards in was already in the works. Innovation continued with the California, Big Blue was being

16 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 9 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS advent of direct-recording electron- held and, in one instance, the family Clark County opted for the Home-State Advantage ic (DRE) systems that recorded bonds that tie the two largest voting Sequoia DRE machines far votes electromagnetically rather machine companies. A few examples: ahead of the state, using them Companies that manufacture county selected Sequoia voting Ultimately, Palmetto Unilect got than on paper ballots. • Alfie Charles, a spokesman for since the mid-1990s.27 voting machines and set up voter reg- machines in early January 2004. another chance to bid – but not on From the large, push-button Sequoia Voting Systems, joined • DRE maker Unilect is headed istration databases are like any other Mark Radke, director of market- the basis of an in-state preference. DREs that closely resembled the the company in 2002 after work- by Jack Gerbel, who started business — when they pursue con- ing for Diebold said the company Rather, the state reopened bidding elderly lever machines, ATM-style ing for seven years as press sec- with IBM then founded CES. tracts in their home state, they are was,“very disappointed that Licking because ES&S’s winning bid did not machines emerged – paperless, able retary in California Secretary of The company Web site notes not shy about pushing the local angle. County elected to go with a com- provide fixed prices for some items to display multiple character sets State Bill Jones’ office – the same that Gerbel “had at that time When Ohio announced it was petitor, especially considering the over the duration of the contract, as and impossible to over-vote. Voters office which spearheaded the the distinction of personally accepting bids to replace the punch- fact that we have a large manufactur- had been specified. In mid-July 2004, could be warned of non-votes and passage of a $200 million bond selling and installing more suc- card machines in use in most coun- er located in the county and a large ES&S was again awarded the contract. could review their ballots before measure to replace punch cards cessful election systems than ties, North Canton, Ohio-based number of Diebold employees live in In other cases, local vendors 55 they were cast. And people with dis- in the state. Sequoia also hired any other person in the U.S.”28 Diebold, Inc. jumped at the opportu- the county.” have had the advantage of already abilities, particularly blind voters, Jones himself as a consultant in CES was one of two companies nity, as did many other companies. The loss did not leave lasting having done business with their could cast ballots secretly and inde- 2003 – one month after the that had the rights to purchase (Diebold Election Systems, a sub- scars, however. Over 40 counties out home state. pendently, many for the first time in Mercury News reported that he IBM’s punch-card voting sys- sidiary of Diebold, is based in Texas). of 71 eligible to select electronic Indianapolis-based Quest their lives. wrote letters to Santa Clara tems after the company got out However, Diebold made an offer voting machines selected Diebold. Information Systems recently won its County’s Board of Supervisors of the business in 1969. other companies could not – to Sequoia ended up not signing a con- bid to create a statewide voter regis- Family Ties, assuring them the company’s • Nebraska-based Election manufacture all voting machines for tract with the state, leaving Licking tration database for Indiana.The Ex-Election Officials DREs were reliable.25 A compa- Systems and Software (ES&S) the state in-state, at the firm’s County to select from the remaining Secretary of State’s office not only and IBM Veterans ny press release also noted hired Sandra Mortham, a lob- Newark plant where they produce three vendors. noted the company’s Indiana roots in After years of being largely Charles joined Kathryn byist who, in 2002 sold the automated teller machines. Secretary In South Carolina, the selection its announcement, but also men- ignored, the business of selling elec- Ferguson, the company’s vice company’s touch-screen voting of State Kenneth Blackwell, though, of Election Systems and Software tioned the extensive work the election systems has become increasing- president of governmental rela- systems to Florida counties. She pointed out that Diebold’s in-state (ES&S) to supply electronic voting tions division and the company had ly public, with intense media scruti- tions and public affairs.26 served as secretary of state from status would not be a factor in the machines for the state over home- already done together, including proj- ny into the integrity, security and Ferguson, who was hired by the 1995 to 1999 and also split time selection process. town Palmetto Unilect caused a stir, ects such as the state’s campaign accuracy of all types of equipment. 58 company in 2001, was the for- between her ES&S lobbying “This is not an economic develop- The company protested the decision finance reporting system. Not so well known are the close mer election chief in Clark duties and those she performed ment project.This is a process that will partially on the grounds of being an Similarly, in Oregon, the state ties many of those selling voting sys- County, Nevada, the state’s for the Florida Association of provide the voters of Ohio with the in-state company. chose a local vendor with which it tems have to companies that pro- largest. Nevada opted for a Counties, reported The best election systems available, at the The company claimed if they had a history with to set up its duced the punch cards their compa- statewide system of Sequoia Associated Press in The St. best value for taxpayers,” said Carlo were awarded the contract it would statewide registration database. nies are seeking to replace, the posi- 53 touch-screen machines in 2003. Petersburg Times in 2002. LoParo, a Blackwell spokesman. hire at least 85 people to build the Salem-based Saber Consulting won a tions some election system officials Mortham told the paper she When Diebold was one of four machines.“The purchasing ought to $10.5 million contract in August was not involved in the decision companies that eventually did make be geared more toward allowing in- 2003.The company is partnering by the association to endorse the list of approved vendors, the state distributors the right to get a with two other Oregon-based company then focused on the coun- percentage (price advantage) for organizations for this project. Not so well-known are the close ties many of the ES&S touch screens, which are now used in two of Florida’s ties that would be selecting being in-state and hiring South The company estimates the those selling voting systems have to compa- most populous counties, machines.After the Licking County Carolina people,” said state Sen. Jake contract will create over $800,000 Miami-Dade and Broward.29 Board of Elections (home of the Knotts, R-Lexington, supporting in information technology jobs in nies that produced the punch cards their 56 • The nation’s two largest elec- Newark plant) said they were lean- Palmetto Unilect. the state. companies are seeking to replace, the position system manufacturers, ing toward Sequoia Pacific Voting State law requires a “South “This project is about Oregon Systems, Diebold quickly went into Carolina vendor preference,” which companies delivering world-class tions some election system officials held and, Diebold Election Systems and ES&S share more than a hefty action, sending hundreds of letters Unilect officials said was not included value to Oregon clients for the citi- in one instance, the family bonds that tie the chunk of the voting machines to members of the Licking County in the state’s request for proposal. This zens and taxpayers of Oregon….the Chamber of Commerce, asking claim was rebuffed, however, by the choice of Saber keeps $10.5 million two largest voting machine companies. business. They share the Urosevich brothers. Todd business leaders to urge the county state procurement office, stating that it in Oregon for the creation and 54 Urosevich, who has spent near- to choose Diebold. did not apply in this case because these retention of Oregon jobs,” the com- Despite the letter campaign, the were sealed competitive bids.57 pany said in a statement.59

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the procurement process has not ly 20 years in the election been smooth. After the list of possi- industry, works for one of the ble vendors was whittled down to chief competitors of his broth- Six DRE makers united in late 2003 to three, Sequoia, one of the vendors California is also the first state to have a er’s company. Bob Urosevich not selected, protested the process. serves as Diebold Election Ohio Secretary of State Kenneth county cancel a voting machine contract System’s president. Conspiracy form the Election Technology Council, Blackwell avoided any grievance theorists often point out the process and added the vendor to the with a vendor, banning the use of one family ties that link the compa- list. In the end, though, Sequoia nies.30 Both brothers worked at a group under the umbrella of the decided not to sign a contract with type of DRE produced by Diebold. the same election company the state. they founded, American Information Technology Association of Ohio has also faced delays in Information Systems (which releasing funds to purchase DREs in later became ES&S). and jurisdictions in some states are Pennsylvania similarly left it to light of concerns over touch-screen Sen. Charles Hagel, R-Neb., America...A critic dismissed the still responsible for negotiating con- the locals. “The Commonwealth • security and the decision to require had a financial stake in the tracts with vendors. plans to leave decisions regarding paper trails by 2006. The three McCarthy Group, Inc., a com- In California, the epicenter of the replacement or upgrading of counties that were to switch to e- pany that owns ES&S. Hagel Council as,“an attempt to put togeth- DRE controversy, some counties voting systems to the prerogative of voting this November were prohib- was chairman of American negotiated voting machine contracts the governing authorities of the ited because of security concerns.46 Information Systems until 1995, with vendors in 2001 and 2002, Commonwealth’s 67 counties,” the er a united public relations front. Michigan followed a similar just before he became a candi- after the state passed a $200 million state plan noted.50 path and selected three vendors date. Michael R. McCarthy, bond issue to fund the replacement (Diebold, ES&S and Sequoia) to chairman of the McCarthy They’ve always shown an interest in of punch cards. Wait and See supply optical-scan voting systems. Finally, there are a few states, Group, served as Hagel’s cam- Like Ohio, California has man- Diebold and ES&S received state including Idaho, Montana and paign treasurer from 1999 until dated a VVAPT by 2006. And one saying whatever they can to get past certification and Sequoia received Wyoming that are waiting to see how the end of 2002.31 county, Santa Clara, concerned conditional certification. The state the controversy over electronic voting Washington’s secretary of state about what adding printers would • then sent packets to counties with plays out and for the EAC and NIST until 2000, Ralph Munro, cost, negotiated into its contract public relations problems.” information on the vendors. If the to issue voting system standards, serves on the board of direc- with Sequoia Voting Systems that if county opted for Sequoia, the which will likely occur in 2005. tors of VoteHere, a company a paper trail was mandated by the machines would not be purchased Responding to an electionline.org that produces voting applica- Secretary of State, “within six to 12 A press release from the organi- served a public relations role, releas- until 2005. The counties also had survey, Lori Klassen, elections offi- tions. Avi Rubin, a Johns months after the certification by the zation stated Advanced Voting ing statements calling the controver- the option to select no vendor and cer from the Wyoming Secretary of Hopkins University computer Secretary of State Sequoia must Systems, Diebold Election Systems, sy over paperless DREs, “more rhet- opt out until 2005. State’s office said, “Wyoming will scientist who wrote an oft- provide 5500 VVPR [Voter Verified Election Systems & Software, Hart oric than reality,” and stating that, It appears most jurisdictions in be watching NIST very closely cited report on the security Paper Record] devices to the InterCivic, Sequoia Voting Systems “few critics have tried to play to the Michigan that do not already have before moving forward too far in and integrity of Diebold’s County at no additional cost.”48 and Unilect formed the group, “to fears of many Americans by spread- optical scan systems – about 650 – this area.”51 DREs served on the company’s California is also the first state raise the profile of electronic voting myths, misinformation and con- will still be using their old systems advisory board and held stock 34 to have a county cancel a voting Barb Huey, Iowa’s deputy sec- ing, identify and address security spiracy theories.” in November. State and local offi- options until August 2003.32 machine contract with a vendor, retary of state for elections and concerns with electronic voting, DRE researcher Rubin dis- cials say a longer-than-expected cer- banning the use of one type of DRE voter registration, echoed these sen- The Vendors Unite develop a code of ethics for compa- missed the Council as, “an attempt tification process has cut short the timents. “We are waiting for the produced by Diebold. In the face of attacks on their nies in the electronic voting sector, to put together a united public time necessary to convert to the certification process through EAC "There was a confidence issue machines’ reliability and security, and make recommendations in the relations front. They’ve always new system.47 and NIST to be established and will with the way Diebold conducted six DRE makers united in late 2003 areas of election system standards shown an interest in saying whatev- follow their recommendations and 33 Local-level procurement business with the county and the to form the Election Technology and certification.” VoteHere is er they can to get past public rela- guidelines,” she said.52 35 of voting systems state in the past year," said Ira Council, a group under the umbrel- now a member as well. tions problems.” Maintaining a status quo in Rosenthal, Solano County registrar la of the Information Technology In the six months since its for- election administration, counties and chief information officer.49 Association of America. mation, the Council has primarily

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by Sequoia. The state also required vehicle that Detroit has tested for a use touch screens which the state Voting System Procurement a paper trail by the November long time always has bugs."41 could deploy by 2006. Deputy 2004 election. In choosing between Heller, citing public support for Secretary of State Kevin Tyne said Sequoia and Diebold, Secretary of a paper trail, stated that election Arizona will wait to proceed with State Dean Heller looked to the officials such as Glover should be touch screens, track developments state’s Gaming Control Board’s more concerned about maintaining in parts of the country using DREs The Help America Vote Act through large purchases) and Secretary of State’s office “not only Electronic Services Division. The voter confidence at the polls. and see what new technology devel- (HAVA) marks the most compre- then letting counties select recommended that the state adopt a division, citing reports critical of In April, South Carolina’s selec- ops. The state could use the hensive federal involvement in state from this list. single uniform voting platform, but Diebold touch screens in tion process hit a similar snag. Diebold touch screens, but they are and local elections since the Voting • Local level procurement of also initiated a shift in policy – Maryland, noted, “The Diebold The state wants to employ a also “open-armed to all sorts of Rights Act of 1965. More signifi- voting systems. A number of transferring a portion of election electronic voting machine…repre- single voting system statewide. solutions,” Tyne said.43 cantly, it marks the first time the other states, including responsibilities from the counties sents a legitimate threat to the Some counties that already have One potential solution could be U.S. government has provided California and Pennsylvania, and election superintendents to the integrity of the election process.” A electronic voting machines, how- a voting system produced by funds to states to make changes in have continued the traditional state for funding and deployment of paper trail was required so, “voters ever, want to retain the machines ES&S/Automark which combines 37 the election process. practice of allowing local offi- a new statewide election system.” will be confident their choices are that are already in place. In touch-screen and optical scan tech- Despite this level of federal cials to purchase voting systems Accordingly, the state took being recorded accurately.”39 Georgetown County, for example, nology. It is billed by proponents as involvement, including a $3.86 bil- for their jurisdiction. charge of the procurement process: Not everyone in the state was officials say they are pleased with a device that satisfies both the lion authorization and mandates for • Wait and see. Finally, there are requesting and evaluating proposals pleased with the selection process. their current UniLect Patriot desire for a paper trail and the all states and territories to follow, the states that are waiting for from companies; selecting a vendor In a letter to Heller, Carson City electronic voting machines, and HAVA requirement of being acces- the administration of elections the Election Assistance and deploying the system statewide. County Clerk Alan Glover — presi- are worried the state will not be sible to blind and disabled voters. remains a distinctly local process. Commission (EAC) and the By November 2002, all Georgia vot- dent of the Nevada Association of able to reimburse them for what Arizona will be using the machines States that have been replacing or National Institute of ers were casting ballots on Diebold County Clerks — said, “Our unified they spent on these machines.42 in a pilot project this fall in targeted upgrading voting systems have not Technology Standards (NIST) touch-screen voting machines. opinion also still remains strong precincts in two or three counties, been directed how to do so by the to provide guidelines on voting Like Georgia, Maryland also that each county be responsible for New technology including the state’s largest, Controversy over touch screens federal government. systems standards before they started the process of purchasing selecting the equipment and vendor Maricopa County.44 In examining how states have move forward with purchasing new voting machines before the that will best meet the needs of has not only created tension between the counties and states, it has led gone about procuring contracts new voting technology. enactment of HAVA. State officials local voters.”40 State-level some states to examine emerging with companies to deliver new vot- also selected Diebold to implement Clerks were not just bothered procurement of State-level voting technology. ing systems, electionline.org identified a statewide DRE voting system. by the process; they were also con- multiple voting systems procurement of Arizona negotiated a contract four procurement methods: Both states have received kudos cerned about the rush to require a Two other states have taken a uniform voting systems with Diebold for optical-scan sys- • State-level procurement of from some for being the first to paper trail. slightly different approach. Both tems to replace punch-card one voting system. Currently Ahead of the pack make the leap into large-scale “Everyone is very nervous about Ohio and Michigan have negotiated machines in nine counties. The six states have controlled the pro- Georgia, the first state to tackle replacement of voting machines. it,” Glover said. “The timing is not contracts at the state level but opted contract also included an option to curement process and purchased the issue of replacing maligned This praise has been countered good at all. Even a new model of for multiple vendors from which one voting system either for the punch-card voting machines, did so by critics who have voiced concerns counties could choose. entire state or for jurisdictions in on a statewide scale. In the 2000 over the security and reliability of Ohio officials said they hoped the state that needed machine presidential election, 3.6 percent of electronic voting and the lack of a to achieve dual goals -- negotiating replacement – Arizona, Georgia, the Peach State’s voters who cast voter-verified paper audit trail Controversy over touch screens has the best price while keeping the Maryland, Nevada, North ballots did not register a vote for (VVPAT). This growing debate counties involved in the process. Dakota, and South Carolina. president, a higher rate than the 2.9 over paperless voting has had an not only created tension between “Providing counties with the ability • State-level procurement of percent in Florida.36 Secretary of impact on the procurement process to choose among a list of qualified 38 multiple voting systems. Tw o State Cathy Cox, alarmed at this in other states. the counties and states, it has led vendors preserves the involvement states, Ohio and Michigan, statistic, convinced lawmakers to of the counties in the vendor Electronic voting debate and have taken an in-between take action before the promise of process while maximizing the buy- state/county friction some states to examine emerging approach, negotiating contracts any federal funds. ing power of the state under a state Nevada, monitoring this grow- with several vendors (in hopes In Georgia’s plan to implement term contract procedure,” the state ing controversy over electronic voting technology. 45 of receiving better prices HAVA, Cox noted that the HAVA plan states. voting, purchased DREs provided Yet, in Ohio as in other states,

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14 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 11 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS advent of direct-recording electron- held and, in one instance, the family Clark County opted for the Home-State Advantage ic (DRE) systems that recorded bonds that tie the two largest voting Sequoia DRE machines far votes electromagnetically rather machine companies. A few examples: ahead of the state, using them Companies that manufacture county selected Sequoia voting Ultimately, Palmetto Unilect got than on paper ballots. • Alfie Charles, a spokesman for since the mid-1990s.27 voting machines and set up voter reg- machines in early January 2004. another chance to bid – but not on From the large, push-button Sequoia Voting Systems, joined • DRE maker Unilect is headed istration databases are like any other Mark Radke, director of market- the basis of an in-state preference. DREs that closely resembled the the company in 2002 after work- by Jack Gerbel, who started business — when they pursue con- ing for Diebold said the company Rather, the state reopened bidding elderly lever machines, ATM-style ing for seven years as press sec- with IBM then founded CES. tracts in their home state, they are was,“very disappointed that Licking because ES&S’s winning bid did not machines emerged – paperless, able retary in California Secretary of The company Web site notes not shy about pushing the local angle. County elected to go with a com- provide fixed prices for some items to display multiple character sets State Bill Jones’ office – the same that Gerbel “had at that time When Ohio announced it was petitor, especially considering the over the duration of the contract, as and impossible to over-vote. Voters office which spearheaded the the distinction of personally accepting bids to replace the punch- fact that we have a large manufactur- had been specified. In mid-July 2004, could be warned of non-votes and passage of a $200 million bond selling and installing more suc- card machines in use in most coun- er located in the county and a large ES&S was again awarded the contract. could review their ballots before measure to replace punch cards cessful election systems than ties, North Canton, Ohio-based number of Diebold employees live in In other cases, local vendors 55 they were cast. And people with dis- in the state. Sequoia also hired any other person in the U.S.”28 Diebold, Inc. jumped at the opportu- the county.” have had the advantage of already abilities, particularly blind voters, Jones himself as a consultant in CES was one of two companies nity, as did many other companies. The loss did not leave lasting having done business with their could cast ballots secretly and inde- 2003 – one month after the that had the rights to purchase (Diebold Election Systems, a sub- scars, however. Over 40 counties out home state. pendently, many for the first time in Mercury News reported that he IBM’s punch-card voting sys- sidiary of Diebold, is based in Texas). of 71 eligible to select electronic Indianapolis-based Quest their lives. wrote letters to Santa Clara tems after the company got out However, Diebold made an offer voting machines selected Diebold. Information Systems recently won its County’s Board of Supervisors of the business in 1969. other companies could not – to Sequoia ended up not signing a con- bid to create a statewide voter regis- Family Ties, assuring them the company’s • Nebraska-based Election manufacture all voting machines for tract with the state, leaving Licking tration database for Indiana.The Ex-Election Officials DREs were reliable.25 A compa- Systems and Software (ES&S) the state in-state, at the firm’s County to select from the remaining Secretary of State’s office not only and IBM Veterans ny press release also noted hired Sandra Mortham, a lob- Newark plant where they produce three vendors. noted the company’s Indiana roots in After years of being largely Charles joined Kathryn byist who, in 2002 sold the automated teller machines. Secretary In South Carolina, the selection its announcement, but also men- ignored, the business of selling elec- Ferguson, the company’s vice company’s touch-screen voting of State Kenneth Blackwell, though, of Election Systems and Software tioned the extensive work the election systems has become increasing- president of governmental rela- systems to Florida counties. She pointed out that Diebold’s in-state (ES&S) to supply electronic voting tions division and the company had ly public, with intense media scruti- tions and public affairs.26 served as secretary of state from status would not be a factor in the machines for the state over home- already done together, including proj- ny into the integrity, security and Ferguson, who was hired by the 1995 to 1999 and also split time selection process. town Palmetto Unilect caused a stir, ects such as the state’s campaign accuracy of all types of equipment. 58 company in 2001, was the for- between her ES&S lobbying “This is not an economic develop- The company protested the decision finance reporting system. Not so well known are the close mer election chief in Clark duties and those she performed ment project.This is a process that will partially on the grounds of being an Similarly, in Oregon, the state ties many of those selling voting sys- County, Nevada, the state’s for the Florida Association of provide the voters of Ohio with the in-state company. chose a local vendor with which it tems have to companies that pro- largest. Nevada opted for a Counties, reported The best election systems available, at the The company claimed if they had a history with to set up its duced the punch cards their compa- statewide system of Sequoia Associated Press in The St. best value for taxpayers,” said Carlo were awarded the contract it would statewide registration database. nies are seeking to replace, the posi- 53 touch-screen machines in 2003. Petersburg Times in 2002. LoParo, a Blackwell spokesman. hire at least 85 people to build the Salem-based Saber Consulting won a tions some election system officials Mortham told the paper she When Diebold was one of four machines.“The purchasing ought to $10.5 million contract in August was not involved in the decision companies that eventually did make be geared more toward allowing in- 2003.The company is partnering by the association to endorse the list of approved vendors, the state distributors the right to get a with two other Oregon-based company then focused on the coun- percentage (price advantage) for organizations for this project. Not so well-known are the close ties many of the ES&S touch screens, which are now used in two of Florida’s ties that would be selecting being in-state and hiring South The company estimates the those selling voting systems have to compa- most populous counties, machines.After the Licking County Carolina people,” said state Sen. Jake contract will create over $800,000 Miami-Dade and Broward.29 Board of Elections (home of the Knotts, R-Lexington, supporting in information technology jobs in nies that produced the punch cards their 56 • The nation’s two largest elec- Newark plant) said they were lean- Palmetto Unilect. the state. companies are seeking to replace, the position system manufacturers, ing toward Sequoia Pacific Voting State law requires a “South “This project is about Oregon Systems, Diebold quickly went into Carolina vendor preference,” which companies delivering world-class tions some election system officials held and, Diebold Election Systems and ES&S share more than a hefty action, sending hundreds of letters Unilect officials said was not included value to Oregon clients for the citi- in one instance, the family bonds that tie the chunk of the voting machines to members of the Licking County in the state’s request for proposal. This zens and taxpayers of Oregon….the Chamber of Commerce, asking claim was rebuffed, however, by the choice of Saber keeps $10.5 million two largest voting machine companies. business. They share the Urosevich brothers. Todd business leaders to urge the county state procurement office, stating that it in Oregon for the creation and 54 Urosevich, who has spent near- to choose Diebold. did not apply in this case because these retention of Oregon jobs,” the com- Despite the letter campaign, the were sealed competitive bids.57 pany said in a statement.59

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16 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 9 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS The Industry Federal Lobbyist Expenditures PRINCIPAL FEDERAL LOBBYIST DATES COMPENSATION EXPENSES TOTAL DIEBOLD DAVID DISTEFANO JAN. - JUNE 2003 $30,000 $0 JULY - DEC. 2003 $20,000 $0 TOTAL $50,000 $0 $50,000 ES&S SUSAN PETNIUNAS JAN. - JUNE 2001 $20,000 $0 Voting System The Gold Rush These money shortages at the JULY - DEC. 2001 $20,000 $0 Manufacturers Then and that Wasn’t local level, combined with lingering JAN. - JUNE 2002 $20,000 $0 JULY - DEC. 2002 $20,000 $0 Now – A Brief History With federal money, state questions about the security and JAN. - JUNE 2003 $20,000 $0 Until recently, few people in matching funds and strong local reliability of paperless voting sys- TOTAL $100,000 $0 $100,000 the country, other than those who interest nationwide to avoid “anoth- tems, contributed to growing finan- VOTEHERE, INC. JENNIFER CURLEY JAN. - JUNE 2001 $80,000 $0 purchased and maintained voting er Florida,” the election system cial troubles for voting system man- JULY - DEC. 2001 $0 $120,000 JAN. - JUNE 2002 $0 $220,000 machines, paid any attention to the market in recent years has been ufacturers – troubles that are begin- JULY - DEC. 2002 $0 $140,000 companies that made those systems. transformed from a little-noticed ning to show up on the bottom line. BARRY RHOADS JAN. - JUNE 2002 $60,000 $0 Prior to 2000, few even considered industry dominated by a few compa- Sequoia Pacific Voting Systems, TOTAL $140,000 $480,000 $620,000 what they voted on, much less who nies into a cutthroat business com- the second largest DRE vendor in manufactured the lever, punch-card plete with lawsuits, front-page news the country, reported sales up 75 Diebold Contributions 2001 or optical-scan machine on which reports and public relations blitzes – percent in 2003, but margins fell, they cast their ballots. including newspaper advertisements causing a $3.5 million operating CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT AMES-FORSYTHE, ANNE PAWLENTY, TIM GOV. R - MN 20-NOV $125 The rush to replace maligned, and even highway billboards. loss. Its parent company, London- BOCKIUS, LOUIS V. III BOARD OF DIRECTORS STARK COUNTY REPUBLICAN PARTY R - OH 12-FEB $1,000 older voting technologies has creat- After the 2000 election, it based De La Rue, could dump the TAFT, BOB GOV. R - OH 21-JUN $2,500 ed a highly competitive and poten- seemed clear that punch-card and company, reported one story.17 CONNOR, CHRISTOPHER BOARD OF DIRECTORS MONTGOMERY, BETTY - AG R - OH 19-MAR $250 16-APR $250 tially lucrative market for compa- lever voting systems would be The largest DRE vendor, 17-JUL $100 nies seeking to sell upgraded voting phased out across the country. The Diebold Election Systems has suf- TAFT, BOB GOV. R - OH 14-SEP $1,000 systems to states and localities. Help America Vote Act (HAVA) of fered even more, with operating 05-NOV $1,000 For consumers – states, localities 2002 promised the states $325 mil- profits plummeting 32 percent in DETERS, JOSEPH - TREASURER R - OH 13-JUN $100 DETTINGER, WARREN VP TAFT, BOB GOV. R - OH 20-NOV $1,000 and the voters who will use the lion to replace or upgrade these vot- 2003 while revenues fell 10 percent GESWEIN, GREGORY SENIOR VP & CFO TAFT, BOB GOV. R - OH 25-JUL $2,500 18 newer systems to cast ballots – the ing systems, and mandated the pur- to $100 million. However, the MAHONEY, ROBERT CHAIRMAN EMERITUS VOINOVICH, GEORGE SEN. R - OH 23-MAR $250 market has driven innovation, result- chase of at least one voting machine company began to show signs of a RNC STATE ELECTIONS COMMITTEE R - OH 11-OCT $2,000 ing in easy-to-use ballot formats that per polling place that was accessible recovery in 2004 with revenues STARK COUNTY REPUBLICAN PARTY R - OH 24-JAN $1,500 TAFT, BOB GOV. R - OH 28-JUN $2,000 can allow for multiple languages and for voters with disabilities. from election systems surging from O'DELL, WALDEN PRES. & CEO RNC STATE ELECTIONS COMMITTEE R - OH 30-JAN $3,950 character sets, accessible voting for The once-stagnant election $7.7 million to $27.1 million.19 14-FEB $2,015 voters with certain disabilities, porta- market seemed to resemble a gold VOINOVICH, GEORGE SEN. R - OH 16-AUG $500 bility, flexibility, quicker tabulations, rush, with the lure of nearly $4 bil- A History of Voting TAFT, BOB GOV. R - OH 02-JUL $2,500 Machine Companies TIMKEN, WILLIAM R. BOARD OF DIRECTORS RNC STATE ELECTIONS COMMITTEE R - OH 24-JAN $5,022 and vastly diminished rates of lion in federal funds for states to 26-APR $30,000 The companies that sell the new uncountable ballots. buy new election equipment. NRCCC - NON FEDERAL #2 R 25-APR $5,000 According to the Federal The rush failed to pan out for machinery have faced a difficult road OH REP. PARTY CANDIDATE FUND R - OH 06-JUN $16,500 SCHURING, KIRK REP. R - OH 05-JUN $2,000 Election Commission, 19 compa- many companies – at least in the at times. Manufacturers have both injected themselves into the world of TAFT, BOB GOV. R - OH 21-JUN $2,500 nies produce, “computerized vote immediate aftermath of the 2000 PETRO, JIM - AUDITOR R - OH 28-DEC $2,500 tabulation systems.” A handful were election. HAVA funds were politics and found themselves the BLACKWELL, KENNETH SOS R - OH 20-DEC $2,500 formed after the troubled 2000 delayed, held up by the late subject of intense criticism, conspira- SIMON, BILL - CANDIDATE FOR GOV. R - CA 12-SEP $1,000 cy theories and government scrutiny. SCHEURER, CHARLES VP TAFT, BOB GOV. R - OH 18-JUN $500 election, started by entrepreneurs appointment of the Election VANCE, WESLEY PRES. NORTH AMERICA VOINOVICH, GEORGE SEN. R - OH 16-AUG $500 Voting machines began replac- who predicted a rich market as Assistance Commission and budget TAFT, BOB GOV. R - OH 02-JUL $2,500 states phased out punch cards and complications. The authorized ing paper ballots in the first half of DIEBOLD INC. REPUBLICAN NATIONAL COMMITTEE R 06-MAR $5,000 lever systems in favor of optical $3.86 billion has still not been fully the 20th century, when the lever 05-SEP $25,000 machine began to be used in a num- ROSEMONT VOTERS LEAGUE N/A 31-JAN $1,075 scan and direct-recording electronic appropriated, nearly four years after REPUBLICAN $125,062 ber of states. The mechanical lever (DRE) voting machines. the 2000 election. OTHER $1,075 system, invented in 1892, was TOTAL $126,137

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18 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 7 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS tions to Republicans and $200 million bond for the purchase Sequoia’s bottom line. Diebold Contributions 2003 Democrats. Republicans received of new voting systems. Nearly two- Was it money well spent? With $21,900 and Democrats $24,550. thirds of voters had previously been Shelley’s demand for voter-verified CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Contributions from California- using punch-card machines. paper audit trails, he has often been at BUCCI, DAVID SENIOR VP VOINOVICH, GEORGE SEN. R - OH 29-JUN $1,000 BUSH, GEORGE W. R 26-JUN $2,000 based Sequoia Voting Systems Sequoia and ES&S were the top odds with DRE manufacturers, who BOCKIUS, LOUIS V. III BOARD OF DIRECTORS STARK COUNTY REPUBLICAN PARTY R - OH 10-FEB $1,000 totaled $3,500 to Republicans and two contributors in the effort to pass insist their products are safe and reli- 02-APR $1,000 $18,500 to Democrats. Texas-based Proposition 41, donating $100,000 able without paper receipts. Shelley BUSH, GEORGE W. R 24-JUN $2,000 CONNOR, CHRISTOPHER BOARD OF DIRECTORS VOINOVICH, GEORGE SEN. R - OH 13-AUG $1,000 Hart InterCivic made the smallest and $50,000 respectively. Their has particularly had public differences BUSH, GEORGE W. R 26-JUN $2,000 contributions – totaling just over efforts – which funded advertise- with Riverside County registrar DEWINE, MIKE SEN. R - OH 23-JUL $2,000 $6,000 with $3,750 to Republicans ments, a Web site and other activities Mischelle Townsend, one of the CARE PAC R 29-DEC $500 and $2,500 to Democrats. – helped to nudge the Act over the industry’s most vocal backers of DREs MONTGOMERY, BETTY - AUDITOR R - OH 19-NOV $500 DETERS, JOSEPH - TREASURER R - OH 25-SEP $250 11 Furthermore, political contribu- top in the March 2002 primary. It nationally, and a Sequoia customer. CROWTHER, JOHN M. CIO BUSH, GEORGE W. R 27-AUG $2,000 tions by voting machine manufac- won with 51.6 percent of the vote on D'AMICO, THOMAS R. VP BUSH, GEORGE W. R 03-SEP $2,000 turers to political parties and candi- the strength of strong majorities in Lobbying VOINOVICH, GEORGE SEN. R - OH 21-JUN $500 Vendors have also paid for lob- DETTINGER, WARREN W. VP VOINOVICH, GEORGE SEN. R - OH 25-JUN $500 dates could drop precipitously in the just a few populous counties, includ- bying efforts at both the state and DIMMITT, WILLIAM R. SERVICE TECH. NATIONAL REP. CONGRESSIONAL COMMITTEE R 02-APR $200 near future. Diebold decided in June ing Los Angeles, San Francisco and FRAZITTA, BART VP BUSH, GEORGE W. R 26-JUN $1,000 federal level. 2004 to ban top executives from Marin.9 29-SEP $1,000 Analysis of these reports is making any political contributions.7 But the influence that voting GESWIN, GREGORY T. SENIOR VP & CFO VOINOVICH, GEORGE SEN. R - OH 30-JUN $2,000 more problematic, given the wide BUSH, GEORGE W. R 26-JUN $2,000 According to a company machine companies buy with their range of state lobbying disclosure HILLOCK, JENNIFER L. BUSH, GEORGE W. R 27-AUG $2,000 spokeswoman, ES&S has a policy contributions is not at all clear. HILLOCK, MICHAEL J.. INTERNATIONAL PRES. VOINOVICH, GEORGE SEN. R - OH 21-JUN $2,000 requirements. For example, many against contributions by employees BUSH, GEORGE W. R 26-JUN $2,000 lobbyist reports analyzed for this in the company's name.8 This, how- Home-State Giving HOOVER, TIMOTHY EMPLOYEE SCHURING, KIRK REP. R - OH 02-OCT $50 study did not require lobbyists to INGRAM, LARRY D. VP BUSH, GEORGE W. R 15-SEP $1,000 ever, is offset by federal and state If political contributions were exclusively to curry favor among include targeted officials or legisla- 26-JUN $1,000 requirements that donors disclose LAUER, JOHN N. BOARD OF DIRECTORS VOINOVICH, GEORGE SEN. R - OH 09-AUG $2,000 tion, but rather stated that generally their employers. state voting decision-makers, the 18-NOV $1,000 both House and Senate officials MAHONEY, ROBERT CHAIMAN EMERITUS CARE PAC R 30-NOV $250 While other companies have question arises: why did Diebold give so much money in Ohio, where were lobbied.12 VOINOVICH, GEORGE SEN. R - OH 29-JUN $1,000 not faced the same criticism as STARK COUNTY REPUBLICAN PARTY R - OH 13-JAN $1,000 only a handful of counties are Moreover, lobbying expenses, Diebold for political involvement, BUSH, GEORGE W. R 06-JUN $2,000 compensation and expenditures var- the decision by the company could replacing voting systems this year, O'DELL, WALDEN PRES. & CEO VOINOVICH, GEORGE SEN. R - OH 25-JUN $2,000 ied from vendor to vendor with BUSH, GEORGE W. R 12-JUN $4,000 inspire others in the industry to stay and none in Maryland and Georgia, two states that decided to purchase heavier activity in states considering 08-AUG $2,000 out of elections, other than with ROSENBERG, WILLIAM VP BUSH, GEORGE W. R 19-SEP $2,000 multi-million dollar statewide vot- larger contracts, such as California, their products. SCHEURER, CHARLES B. VP VOINOVICH, GEORGE SEN. R - OH 21-JUN $500 ing systems from the company?10 New York and Ohio. BUSH, GEORGE W. R 27-AUG $2,000 Case Study in Influence: It could have to do with Nevertheless, even a cursory SCHURING, KIRK REP. R - OH 05-JUN $100 California’s Bond Diebold’s other business, banking, look at state lobbying reports sug- OELSLAGER, SCOTT SEN. R - OH 28-OCT $100 SWIDARSKI, THOMAS SENIOR VP BUSH, GEORGE W. R 09-JUL $2,000 There have been instances and because of its relationship with gests that companies are actively TIMKEN, WILLIAM R. BOARD OF DIRECTORS DEWINE, MIKE SEN. R - OH 11-MAR $1,000 where political activity by voting top leaders in its home state, Ohio. engaged in lobbying as part of their VOINOVICH, GEORGE SEN. R - OH 21-JUN $2,000 machine vendors has had an impact Other companies, including Hart business efforts. MCCOLLUM, BILL 2004 CAMPAIGN R - FLA. 27-AUG $1,000 NATIONAL REP. SENATORIAL CAMPAIGN R 09-JUN $8,500 on policy. The 2002 effort to secure InterCivic, ES&S and Sequoia, have Between 2001 and 2003 20-JUN $8,500 public funding for the purchase of similarly made contributions to Diebold, ES&S, Hart InterCivic, CARE PAC R 31-DEC $5,000 voting systems to replace punch hometown candidates, political Sequoia and VoteHere engaged lob- STARK COUNTY REPUBLICAN PARTY R - OH 20-FEB $2,000 cards in California attracted the action committees, or both. byists in 21 states and several at the 24-OCT $1,500 BUSH, GEORGE W. R 02-JUN $2,000 attention and support of two of the Sequoia, for example, con- federal level. REPUBLICAN NATIONAL COMMITTEE R 22-DEC $20,000 “big five” voting machine compa- tributed $2,000 to Secretary of ES&S employed the most lob- UROSOVICH, ROBERT PRESIDENT DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE D 18-DEC $2,500 nies: Sequoia and ES&S. State Kevin Shelley’s election efforts byists at the state level with lobby- REPUBLICAN $105,950 The Voting Modernization in 2002. As the state’s top election ists registered in 14 states from DEMOCRAT $2,500 TOTAL $108,450 Bond Act of 2002, or Proposition official, Shelley is directly responsi- January 2001 to June 2003. ES&S 41, would allow the state to secure a ble for making decisions that impact spent a total of $100,000 on com-

6 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 19 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

20 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 5 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS Political Activity and Voting Machine Hart InterCivic Contributions 2001 CONTRIBUTOR POSITION RECIPIENT DATE AMOUNT Manufacturers FARMER, JOHN BOARD OF DIRECTORS NATL. ASSC. OF SMALL BUSINESS INVESTMENT CO. PAC 9-JUL $500 Hart InterCivic Contributions 2002

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22 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 3 THE BUSINESS OF ELECTIONS THE BUSINESS OF ELECTIONS

Election companies, once relatively anonymous in the pre-2000 days when election administration was not a front- page issue, have found themselves at the center of debate.

2 ELECTION REFORM BRIEFING ELECTION REFORM BRIEFING 23 electionline.org ELECTIONELECTION REFORM REFORM lectionline.org, administered by the Election Reform Information Project, is the e nation’s only nonpartisan, non-advocacy website providing up-to-the-minute news and analysis on election reform. After the November 2000 election brought the shortcomings of the American Briefing August 2004 electoral system to the public’s attention, The Pew Charitable Trusts made a three- INSIDE year grant to the University of Richmond to establish a clearinghouse for election The Business of Elections Introduction ...... 1 reform information. Executive Summary ...... 3 In the aftermath of the 2000 election, voting machines became the Political Activity and Voting Serving everyone with an interest in the issue–policymakers, officials, journalists, schol- focus of efforts to improve the nation’s elections. With the passage of Machine Manufacturers . . . .4 ars and concerned citizens–electionline.org provides a centralized source of data and The Industry ...... 8 the $3.86 billion Help America Vote Act (HAVA), counties and cities information in the face of decentralized reform efforts. Voting System Procurement 12 across the country started to consider replacing older voting machines electionline.org hosts a forum for learning about, discussing and analyzing election Tables ...... 16 with newer technologies. Methodology/Endnotes . . .22 reform issues.The Election Reform Information Project also commissions and conducts Nearly four years later, the results are in. Mindful of Florida’s punch-card research on questions of interest to the election reform community and sponsors con- follies in 2000, many state and local officials acted, and as a result, mil- ferences where policymakers, journalists and other interested parties can gather to share lions of voters will cast electronic ballots in 2004, many for the first time.

A Project of the University of Richmond and maintain voting machines nationwide. supported by The Pew Charitable Trusts electionline.org