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 coun- ties 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.