Amended in Senate June 26, 2013

Amended in Assembly May 24, 2013

Amended in Assembly April 16, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 857

Introduced by Assembly Member Fong

February 21, 2013

An act to amend Sections begin delete 9012 end delete begin insert 9008 end insert , 9021, 9022, 9030, 9031, and 18602 of, and to add Sections 9009.5, 9009.6, 9036, 9037, 9038, and 9039 to, the Elections Code, relating to elections.

LEGISLATIVE COUNSEL’S DIGEST

AB 857, as amended, Fong. Initiatives: petition circulators.

(1) The California Constitution and existing statutory law provide for the electors to propose statutes or amendments to the Constitution by initiative. Existing law authorizes a person who is a voter or who is qualified to register to vote in California to circulate an initiative or referendum petition anywhere within the state begin delete , and requires the person soliciting signatures to declare end delete begin insert . Existing law requires that each section of a petition for an initiative or referendum measure have attached thereto the declaration of the person soliciting the signatures that includes specified information regarding the person and a statement end insert under penalty of perjury that he or she is a voter or is qualified to register to vote in the state.

This bill would delete the provisions providing that a person who is a voter or is qualified to vote in California is authorized to solicit signatures on an initiative or referendum petition, and requiring that person to declare under penalty of perjury that he or she is a voter or is qualified to register to vote in the state. begin insert The bill would require that the declaration include a statement of consent to jurisdiction of the state and service of process, as specified, by the person soliciting signatures if he or she is not a resident of the state. end insert

(2) Existing law requires local elections officials to perform various duties with respect to statewide initiative petitions including, within 8 days after the filing of a petition, determining the total number of signatures affixed to the petition. Existing law also requires an elections official, within 30 days of notification from the Secretary of State that a petition has received 100% or more of the signatures needed to declare the petition sufficient, to determine the number of qualified voters who signed the petition. Upon order of the Secretary of State, existing law requires an elections official, within 30 days, to verify each signature on a petition, as specified.

This bill would extend the time a local elections official is required to determine the total number of signatures affixed to a petition to 10 days, and would extend the time a local elections official is required to determine the number of qualified voters who signed the petition to 35 days after receiving notice from the Secretary of State that the petition has received the signatures needed to declare the petition sufficient. The bill also would extend the time that an elections official is required to verify the signatures on a petition to 35 days.

This bill would require at least 20% of the signatures begin delete on a petition for end delete begin insert that are required to qualify end insert an initiative measure to be begin delete submitted on a petition or petition section that was circulated end delete begin insert solicited end insert by a person who does not receive money or other valuable consideration for the specific purpose of soliciting signatures of electors, and would require begin delete those persons to sign an affidavit under penalty of perjury end delete begin insert that the declaration of such a person include additional content end insert , as specified. The bill would require an elections official who determines the total number of signatures affixed to a petition and an elections official or registrar of voters who verifies signatures on petitions to also determine the total number of signatures submitted by persons who do not receive money or other valuable consideration for the specific purpose of soliciting signatures of electors, as specified.

This bill would require a professional petition firm, as defined, to register annually with the Secretary of State in order to pay individuals to circulate petitions and collect signatures to qualify an initiative or referendum measure on a state election ballot, as specified, and would require the professional petition firm to provide training to paid circulators related to obtaining signatures for initiative or referendum petitions, as specified. The bill also would require the Secretary of State to assign a unique three-letter code to each professional petition firm, and would require a professional petition firm to assign a unique four-digit identifying number to each person hired begin insert or retained, directly or indirectly, end insert to circulate a state initiative or referendum petition. Before a professional petition firm begins soliciting signatures for an initiative or referendum petition, the bill would require the firm to obtain from each person hired begin insert or retained, directly or indirectly, end insert as a paid circulator a certified statement, as specified. begin insert The bill would prohibit a professional petition firm from hiring, retaining, or otherwise compensating a person, directly or indirectly, for soliciting signatures on an initiative or referendum petition if the person has been convicted, within the past 10 years, of specified criminal offenses. end insert Within 14 days of the date of execution of the certified statement, the bill would require a professional petition firm to provide to the Secretary of State the name and unique identifying number of each paid circulator and to retain copies of each certified statement, as specified, and would authorize the Secretary of State to inspect those records under reasonable conditions during normal business hours, as specified. The bill would require the Secretary of State to provide each county elections official with a list of the names and unique identifying numbers for begin delete paid circulators end delete begin insert person hired or retained, directly or indirectly, to circulate an initiative or referendum petition end insert , and would prohibit the county elections officials from counting signatures on a petition or sections of a petition if the name and unique identifying number of the paid circulator does not appear on the list provided by the Secretary of State.

This bill would further require a professional petition firm that pays any person to solicit signatures of electors on an initiative or referendum petition to keep detailed accounts, as defined, and would authorize the Secretary of State to review those accounts.

The bill would include specified findings and declarations of the Legislature in support of these policies.

begin insert

(3) Existing law requires that, if the statistical sampling shows that the number of valid signatures on a petition is within 95 to 110% of the number of signatures of qualified voters needed to declare the petition sufficient, the Secretary of State shall order the examination and verification of each signature filed, and shall so notify the elections officials.

end insert begin insert

This bill, with regard to an initiative petition for which the statistical sampling shows that the number of valid signatures for all signatures submitted is more than 110% of the number of qualified voters needed to find the petition sufficient, but the number of valid signatures submitted for purposes of the 20% requirement described above is within 95 to 110% of the number of signatures needed to satisfy that requirement, would require the Secretary of State to order an examination and verification of each signature filed that would satisfy the 20% requirement.

end insert begin delete

(3)

end delete

begin insert (4) end insert  Existing law requires every proposed initiative measure, prior to circulation, to include on the petition, among other things, the circulating title and summary prepared by the Attorney General and a heading for the initiative measure, as specified. Existing law also requires a petition for a proposed initiative or referendum measure to be presented in sections, as specified.

begin delete

This

end delete

begin insert This bill would require a petition for a proposed initiative measure to have printed in the one-inch space across the top of the first page of each section of the petition, in 18-point roman boldface type, end insert begin insert the circulating title for the measure prepared by the Attorney General. The end insert bill would additionally require a petition for a proposed initiative measure that is circulated by persons who do not receive money or other valuable consideration for the purpose of obtaining signatures of electors to be printed on white paper in a contrasting color ink. The bill also would require a petition for a proposed initiative measure that is circulated by persons who do receive money or other valuable consideration for the purpose of obtaining signatures of electors to be printed on begin delete bright yellow end delete paper begin insert of a color other than white end insert in a contrasting color ink. begin delete The bill also would require each section of a petition for a proposed initiative measure to bear a unique identifying number. end delete

begin delete

(4)

end delete

begin insert (5) end insert  Under existing law, an initiative petition must contain specified language advising the public of its right to ask whether the person circulating the petition is a paid signature gatherer or a volunteer.

This bill would instead require a statewide initiative, referendum, or recall petition to include specified disclosures notifying the public that the petition circulator is receiving money or other valuable consideration for the specific purpose of soliciting signatures of electors, as specified.

begin delete

(5)

end delete

begin insert (6) end insert  Existing law provides that a person who engages in specified conduct in connection with the collection of signatures on any statewide initiative or referendum petition is guilty of a misdemeanor.

This bill would require a statewide initiative or referendum petition section to be deemed invalid begin insert , end insert and would prohibit begin delete an elections official from using end delete begin insert use of end insert the petition section for the purpose of determining whether the initiative or referendum measure qualifies for the ballot begin insert , end insert if the signatures are solicited and submitted by a person who engages in fraud, misrepresentation, or any of the specified conduct for which he or she may be found guilty of a misdemeanor. The bill would authorize the Secretary of State or any elector to enforce this provision by a civil action upon a showing of clear and convincing evidence.

begin delete

The bill would provide that the provisions of this act take effect January 1, 2014, and apply to any initiative or referendum petition for which the Attorney General issued a circulating title and summary on or after October 1, 2013.

end delete begin delete

(6)

end delete

begin insert (7) end insert  Because this bill would impose new requirements on local elections officials relative to calculating and verifying signatures on a petition, it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) The power of the initiative is a fundamental right reserved
for the voters of California and must be protected as a means of
governing through direct democracy.

(2) The voters amended the California Constitution to reserve
for themselves the power of the initiative because financially
powerful interests, including railroad companies, exercised a
corrupting influence over state politics.

(3) The purpose of reserving the initiative power was to provide
individuals, communities, and coalitions a means to protect the
general interests of the State of California.

(4) For the past 30 years, a disturbing trend in the state’s political
process has undermined the original intent of the initiative power.
Whereas the initiative was reserved by the voters for the purpose
of allowing voters to participate in direct democracy, now the
integrity of the initiative process has been corrupted by
well-financed special interests.

(5) Due to the growth of paid signature gathering, the presence
of an initiative measure on the ballot is no longer necessarily
viewed as an expression of a minimum amount of public support
but, rather, often is the result of a special interest willing to pay a
sufficient number of petition circulators to qualify the initiative
measure for the ballot.

(6) Whereas initiative petitions were originally circulated by
volunteer and grassroots organizations, well-funded individuals
and organizations that promote narrow interests may rely
exclusively on paid circulators to qualify an initiative measure that
does not have broad community support. In many cases, the
individuals and organizations supporting an initiative petition do
not reside in the state and will not be subject to the laws that they
propose.

(7) Professional petition firms hire paid circulators to gather as
many signatures as possible in the least amount of time. Often the
signatures are obtained without providing electors an explanation
of the true purpose and effect of the proposed initiative measure.
Paid circulators are also instructed to solicit signatures from
electors begin delete who do end delete begin insert even if an elector does end insert not understand the contents
of the petition. Due to the prevalence of professional petition firms
and paid circulators, special interests may qualify an initiative
measure for the ballot without the necessary minimum showing
of public support. As a result, the statewide election ballot is
increasingly cluttered with initiative measures that do not have
enough public support to justify the expenses of administering the
election for those particular proposals.

(8) As has been the case since the initiative power was created,
initiative measures that have broad public support continue to
qualify for the ballot through the efforts of volunteers and
organizations, but the sheer number and complexity of proposals
without broad public support have overwhelmed voters,
undermining the integrity of both the signature gathering and
electoral processes.

(9) The prevalence of paid circulators has also led to instances
of fraud and misrepresentation, and the erosion of public
confidence in the initiative process. The most popular means of
paying petition circulators is based on the number of signatures a
person collects. Under a payment-per-signature arrangement, a
paid circulator does not need an incentive to educate voters about
an initiative petition but, instead, may be motivated solely by
financial reasons to gather as many signatures as possible. In their
quest for economic gain, paid circulators often purposefully
mislead voters and leave the public in the dark about the true
content of initiative petitions.

(10) Because the use of paid circulators is no longer a sufficient
means of measuring the necessary public support for an initiative
measure to appear on the ballot and has been associated with
coercive and misleading tactics to collect signatures, the public is
dissatisfied with the initiative process and the means by which a
petition is circulated to qualify a measure for the ballot.

(11) Unlike paid circulators, a widespread volunteer effort to
qualify an initiative measure for the ballot demonstrates a
significant level of public support. Improving the measure of public
support for a proposed initiative measure will increase the public’s
confidence in the integrity of the initiative process.

(12) The Legislature is responsible for providing the manner in
which initiative petitions are circulated, presented, and certified.
Consistent with this constitutional duty, the Legislature must
provide for laws that are consistent with the original intent of the
voters in reserving the power of the initiative; protect the integrity
of the initiative process; and prevent the occurrence of fraud and
misrepresentation in the circulation, presentation, and certification
of initiative petitions.

(b) Therefore, it is the intent of the Legislature to do all of the
following:

(1) Preserve and protect the integrity of California’s initiative
process.

(2) Ensure that initiative petitions have sufficient grassroots
support from informed voters to be placed on the ballot.

(3) Protect access to the initiative process and preserve the
constitutional right of voters in California to engage in direct
democracy.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 9008 of the end insert begin insert Elections Code end insert begin insert is amended to read: end insert

9008.  

begin delete Every end delete begin insert Each end insert proposed initiative measure, prior to
circulation, shall have placed across the top of the petition begin delete in
12-point or larger roman boldface type, end delete all of the following:

(a) The Attorney General’s unique numeric identifier begin insert , in
12-point or larger roman boldface type, end insert placed before the
circulating title and summary upon each page where the circulating
title and summary is to appear.

(b)  begin insert (1) end insert begin insert   end insert The circulating title and summary prepared by the
Attorney General begin insert , in 12-point or larger roman boldface type, end insert upon
each page of the petition on which signatures are to appear.

begin delete

(c)

end delete

begin insert (2) end insert  The circulating title and summary prepared by the Attorney
General begin insert , in 12-point or larger roman boldface type, end insert upon each
section of the petition preceding the text of the measure.

begin insert

(3) Notwithstanding Section 9013, on the first page of each
section of the petition, the circulating title prepared by the Attorney
General shall be placed in the one-inch space across the top of
the page in 18-point roman boldface type.

end insert begin delete

(d)

end delete

begin insert (c) end insert  The circulating title and summary prepared by the Attorney
General begin insert , end insert as required by begin delete subdivision (c) end delete begin insert paragraph (2) of
subdivision (b), end insert shall be preceded by the following statement begin insert in
12-point or larger roman boldface type end insert : “Initiative measure to be
submitted directly to the voters.”

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 9009.5 is added to the Elections Code, to read:

9009.5.  

(a) A petition for a proposed initiative measure that
is circulated by a person who does not receive money or other
valuable consideration for the purpose of soliciting signatures of
electors, for purposes of Section 9036, shall be printed on white
paper in a contrasting color ink.

(b) A petition for a proposed initiative measure that is circulated
by a person who receives money or other valuable consideration
for the purpose of soliciting signatures of electors shall be printed
on begin delete bright yellow end delete paper begin insert of a color other than white end insert in a contrasting
color ink.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 9009.6 is added to the Elections Code, to read:

9009.6.  

(a) Notwithstanding any other provision of law, a
petition for a proposed initiative measure that is circulated by a
person who receives money or other valuable consideration for
the specific purpose of soliciting signatures of electors shall include
the following statement immediately prior to the portion of the
petition for voters’ signatures, printed names, and residence
addresses, printed in 18-point boldface type:
“NOTICE TO THE PUBLIC: THIS PETITION IS BEING
CIRCULATED BY A PERSON PAID TO OBTAIN YOUR
SIGNATURE. YOU ARE ENCOURAGED TO READ THE
CONTENTS OF THIS PETITION BEFORE SIGNING.”

(b) On each state initiative petition, immediately prior to that
portion of the petition for voters’ signatures, printed names, and
residence addresses, but after the language required by subdivision
(a), where applicable, shall be printed a disclosure statement, in
14-point boldface type, that includes the following language:

“The political committee paying for this petition to be circulated
is (insert full name of committee as registered with the Secretary
of State pursuant to Section 84101 of the Government Code).

The following donors have contributed $50,000 or more to the
(insert full name of committee as registered with the Secretary of
State pursuant to Section 84101 of the Government Code) within
six months of the printing of this petition: (insert name of each of
the top three donors who have contributed fifty thousand dollars
($50,000) or more and, if an individual, his or her occupation and
the identity of his or her employer).”

(c) If the information for the disclosure statement described in
subdivision (b) changes, the disclosure statement on the petition
shall be updated within 14 days.

begin insert

(d) Failure to comply with subdivision (b) shall not constitute
grounds for an elections official to refuse to receive or file an
initiative petition under Section 9015 and shall not render invalid
any signature on an initiative petition.

end insert

begin delete

SEC. 4.  

Section 9012 of the Elections Code is amended to read:

9012.  

(a) A petition for a proposed initiative or referendum
measure may be presented in sections, but each section shall
contain a full and correct copy of the circulating title and summary
and text of the proposed measure.

(b) Each section of a petition for a proposed initiative measure
shall bear a unique identifying number.

(c) The text of the proposed initiative or referendum measure
shall be printed in type not smaller than 8 point.

end delete

SEC. 5.  

Section 9021 of the Elections Code is amended to read:

9021.  

Each section of a petition for a proposed initiative or
referendum measure shall bear the name of a county or city and
county, and only qualified registered voters of that county or city
and county may sign that section. The circulator may sign the
section he or she is circulating as provided in Section 106.

SEC. 6.  

Section 9022 of the Elections Code is amended to read:

9022.  

(a) Each section of a petition for a proposed initiative
or referendum measure shall have attached thereto the declaration
of the person soliciting the signatures setting forth the information
required by Section 104. begin insert If the person soliciting the signatures is
not a resident of this state, the declaration shall also state that the
person consents to both of the following: end insert

begin insert

(1) The jurisdiction of the state for purposes of an investigation
or prosecution by any state or local agency regarding the validity
of the signatures he or she submits.

end insert begin insert

(2) Service of process for any legal action pertaining to an
investigation or prosecution by any state or local agency regarding
the validity of the signatures he or she submits.

end insert

(b)  begin delete A end delete begin insert In addition to the information required by Section 104,
the declaration of a end insert person who solicits signatures for a proposed
initiative measure and does not receive money or other valuable
consideration for the specific purpose of soliciting signatures of
electors shall begin delete sign an affidavit that is prepared by the Secretary of
State and that declares end delete begin insert declare end insert all of the following:

(1) The person does not receive money or other valuable
consideration for soliciting signatures of electors for purposes of
subdivision (a) of Section 9036.

(2) To the best of his or her knowledge, the signatures on the
petition sections circulated by him or her should be counted
towards the requirement set forth in subdivision (a) of Section
9036.

(3) The person’s unique identifying number assigned pursuant
to subdivision begin delete (g) end delete begin insert (h) end insert of Section 9037.

begin delete

(4) The person’s current place of permanent residence.

(5) If the person is not a resident of the state, he or she consents
to both of the following:

(A) The jurisdiction of the state for purposes of an investigation
or prosecution by any state or local agency regarding the validity
of the signatures submitted by him or her.

(B) Service of process for any legal action pertaining to an
investigation or prosecution by any state or local agency regarding
the validity of the signatures submitted by him or her.

end delete

(c) The circulator shall certify to the content of the declaration
as to its truth and correctness, under penalty of perjury under the
laws of the State of California, with his or her signature. The
circulator shall state the date and the place of execution on the
declaration immediately preceding his or her signature.

(d) Petitions so verified shall be prima facie evidence that the
signatures thereon are genuine and that the persons signing are
qualified voters.

SEC. 7.  

Section 9030 of the Elections Code is amended to read:

9030.  

(a) Each section of the petition shall be filed with the
elections official of the county or city and county in which it was
circulated, but all sections circulated in any county or city and
county shall be filed at the same time. Once filed, no petition
section shall be amended except by order of a court of competent
jurisdiction.

(b) Within 10 days after the filing of the petition, excluding
Saturdays, Sundays, and holidays, the elections official shall
determine the total number of signatures affixed to the petition
and, in the case of an initiative petition, the total number of
signatures submitted for purposes of subdivision (a) of Section
9036. The elections official shall transmit this information to the
Secretary of State. If the total number of signatures filed with all
elections officials is less than 100 percent of the number of
qualified voters required to find the petition sufficient or, in the
case of an initiative petition, the number of signatures submitted
for purposes of subdivision (a) of Section 9036 is less than the
total number needed to satisfy the requirement of that subdivision,
the Secretary of State shall so notify the proponents and the
elections officials, and no further action shall be taken with regard
to the petition.

(c) If the number of signatures filed with all elections officials
is 100 percent or more of the number of qualified voters needed
to declare the petition sufficient and, in the case of an initiative
petition, the percentage of signatures submitted for purposes of
subdivision (a) of Section 9036 is equal to or greater than the total
number needed to satisfy the requirement of that subdivision, the
Secretary of State shall immediately so notify the elections
officials.

(d) Within 35 days after this notification, excluding Saturdays,
Sundays, and holidays, the elections official shall determine the
number of qualified voters who have signed the petition and the
number of qualified voters who have signed a section of the petition
that satisfies the requirement of subdivision (a) of Section 9036.
If more than 500 names have been signed on sections of the petition
filed with an elections official, the elections official shall use a
random sampling technique for verification of signatures, as
determined by the Secretary of State. The random sample of
signatures to be verified shall be drawn in such a manner that every
signature filed with the elections official shall be given an equal
opportunity to be included in the sample. The random sampling
shall include an examination of at least 500 or 3 percent of the
signatures, whichever is greater. In determining from the records
of registration the number of qualified voters who have signed the
petition, the elections official may use the duplicate file of
affidavits of registered voters or the facsimiles of voters’ signatures,
provided that the method of preparing and displaying the facsimiles
complies with law.

(e) The elections official, upon the completion of the
examination, shall immediately attach to the petition, except the
signatures thereto appended, a properly dated certificate showing
the result of the examination and shall immediately transmit the
petition and the certificate to the Secretary of State. A copy of this
certificate shall be filed in the elections official’s office.

(f) If the certificates received from all elections officials by the
Secretary of State establish that the number of valid signatures
does not equal 95 percent of the number of qualified voters needed
to find the petition sufficient or, in the case of an initiative petition,
that the number of valid signatures submitted for purposes of
subdivision (a) of Section 9036 does not equal 95 percent of the
number of qualified voters needed to satisfy the requirement of
that subdivision, the petition shall be deemed to have failed to
qualify, and the Secretary of State shall immediately so notify the
proponents and the elections officials.

(g) If the certificates received from all elections officials by the
Secretary of State total more than 110 percent of the number of
qualified voters needed to find the petition sufficient and, in the
case of an initiative petition, the number of valid signatures
submitted for purposes of subdivision (a) of Section 9036 total
more than 110 percent of the number of qualified voters needed
to satisfy the requirement of that subdivision, the petition shall be
deemed to qualify as of the date of receipt by the Secretary of State
of certificates showing the petition received more than 110 percent
of the qualified voters needed, and the Secretary of State shall
immediately so notify the proponents and the elections officials.

(h) The Secretary of State shall enact regulations consistent with
this section.

SEC. 8.  

Section 9031 of the Elections Code is amended to read:

9031.  

(a)  begin insert (1) end insert begin insert   end insert If the statistical sampling shows that the number
of valid signatures is within 95 to 110 percent of the number of
signatures of qualified voters needed to declare the petition
sufficient begin delete or, in the case of an initiative petition, the number of
valid signatures submitted for purposes of subdivision (a) of
Section 9036 is within 95 to 110 percent of the number of
signatures needed to satisfy the requirement of that subdivision end delete ,
the Secretary of State shall order the examination and verification
of each signature filed, and shall so notify the elections officials.

begin insert (2) end insert begin insert   end insert begin insert In the case of an initiative petition, if the statistical sampling
shows that the number of valid signatures for all signatures
submitted is more than 110 percent of the number of qualified
voters needed to find the petition sufficient, but the number of valid
signatures submitted for purposes of subdivision (a) of Section
9036 is within 95 to 110 percent of the number of signatures needed
to satisfy the requirement of that subdivision, the Secretary of State
shall order an examination and verification of each signature filed
to satisfy the requirement of subdivision (a) of Section 9036. end insert

(b) Within 35 days, excluding Saturdays, Sundays, and holidays,
after receipt of the order, the elections official or registrar of voters
shall determine from the records of registration the number of
qualified voters who have signed the petition and, in the case of
an initiative petition, the number of qualified voters who have
signed sections of the petition submitted for purposes of
subdivision (a) of Section 9036, and if necessary the board of
supervisors shall allow the elections official or registrar additional
assistance for the purpose of examining the petition and provide
for their compensation. In determining from the records of
registration the number of qualified voters who have signed the
petition, the elections official or registrar of voters may use any
file or list of registered voters maintained by his or her office, or
the facsimiles of voters’ signatures, provided that the method of
preparing and displaying the facsimiles complies with law.

(c) The elections official or registrar, upon the completion of
the examination, shall immediately attach to the petition, except
the signatures thereto appended, an amended certificate properly
dated, showing the result of the examination and shall immediately
transmit the petition, together with the amended certificate, to the
Secretary of State. A copy of the amended certificate shall be filed
in the elections official’s office.

(d) (1) If the amended certificates establish the petition’s
sufficiency, the petition shall be deemed to be filed as of the date
of receipt by the Secretary of State of certificates showing the
petition to be signed by the requisite number of voters of the state.

(2) If the amended certificates received from all elections
officials by the Secretary of State establish that the petition has
still been found insufficient, the Secretary of State shall
immediately so notify the proponents and the elections officials.

(e) The Secretary of State shall adopt regulations consistent
with this section, including, but not limited to, provisions
specifying a procedure that accounts for duplicate signatures that
appear on petitions submitted pursuant to Section 9036.

SEC. 9.  

Section 9036 is added to the Elections Code, to read:

9036.  

(a) At least 20 percent of the signatures begin delete submitted end delete begin delete to
satisfy the requirements of end delete begin insert required under end insert Section 9035 shall be
presented on a petition or section of a petition that was circulated
by a person who does not receive money or other valuable
consideration exclusively or primarily for the specific purpose of
soliciting signatures of electors on the petition.

(b) (1) A person who is an employee or member of a nonprofit
organization, other than an organization in the business of soliciting
signatures on initiative petitions, who receives money or other
valuable consideration from the organization and as part of that
employment or membership solicits signatures for the qualification
of an initiative measure shall be deemed to be a person who does
not receive money or other valuable consideration for the specific
purpose of soliciting signatures of electors, unless a primary
purpose of that employment or membership is to solicit signatures
on an initiative petition.

(2) For purposes of this subdivision, “member” means any of
the following:

(A) A person who, pursuant to a specific provision of an
organization’s articles of incorporation or bylaws, has the right to
vote directly or indirectly for the election of a director or directors,
or an officer or officers, or on a disposition of all or substantially
all of the assets of the organization, or on a merger or a dissolution.

(B) A person who is designated in an organization’s articles of
incorporation or bylaws as a member and, pursuant to a specific
provision of the articles of incorporation or bylaws, has the right
to vote on changes to the articles of incorporation or bylaws.

(C) A person who pays or has paid membership dues in an
amount predetermined by the organization, provided the
organization is tax exempt under Section 501(c) of the Internal
Revenue Code.

(3) For purposes of this subdivision, a member of a local union
is a member of any national or international union of which the
local union is a part and of any federation with which the local,
national, or international union is affiliated.

(4) For purposes of this subdivision, a person is not a member
of a nonprofit organization solely by virtue of being on a mailing
or contact list of the organization.

(c) Signatures that are solicited by a person who is a registered
voter of a political party, a member of a political party committee
as defined in Section 85205 of the Government Code, or an
employee of a political party or a political party committee and
who receives money or other valuable consideration for soliciting
signatures on an initiative petition from the political party or
political party committee do not count towards the number of
signatures needed to satisfy the requirement of subdivision (a).

(d) (1) Signatures on an initiative petition that are solicited
through direct mail do not count towards the number of signatures
needed to satisfy the requirement of subdivision (a) if the person
soliciting the signatures through direct mail, or any other person
who organizes, pays for, or arranges for the direct mail, receives
money or other valuable consideration primarily for the purpose
of soliciting signatures of electors, unless the person is an employee
or member of a nonprofit organization as described in subdivision
(b).

(2) This subdivision shall not be construed to preclude an
organization that has a primary purpose other than soliciting
signatures on initiative petitions from soliciting signatures from
the organization’s members through direct mail and relying on
those signatures for purposes of satisfying the requirement set forth
in subdivision (a).

(e) This section shall not be construed to preclude a person who
receives nominal benefits other than money, including food,
transportation, or lodging, from qualifying under this section as a
person who does not receive money or other valuable consideration
exclusively or primarily for the specific purpose of soliciting
signatures of electors on a petition for a proposed initiative
measure.

begin insert

(f) Verification of a petition pursuant to Section 9022 shall be
prima facie evidence that the signatures thereon satisfy the
requirement of subdivision (a).

end insert

SEC. 10.  

Section 9037 is added to the Elections Code, to read:

9037.  

(a) For purposes of this section, “professional petition
firm” means begin delete an entity end delete begin insert a business end insert that is created and maintained
for the exclusive or primary purpose of paying individuals begin insert , directly
or indirectly, end insert to circulate initiative and referendum petitions for
the purpose of gathering signatures to qualify an initiative or
referendum measure for a state election ballot.

(b)  begin delete (1) end delete begin delete   end delete A professional petition firm shall register annually with
the Secretary of State. The registration form shall include the full
name, address, and partners, owners, or officers of the firm, and
shall be accompanied by a registration fee established by the
Secretary of State. The Secretary of State shall adopt regulations
providing procedures for registration pursuant to this subdivision,
including the denial and revocation of registration.

(c) The Secretary of State shall use the registration fees collected
pursuant to subdivision (b) to maintain a directory of professional
petition firms on his or her Internet Web site and to defray any
other costs associated with the requirements of this section.

(d) A professional petition firm shall provide training to each
begin delete paid end delete begin insert person hired or retained, directly or indirectly, to circulate
an initiative or referendum end insert petition begin delete circulator end delete , individually or in
a group, that includes a review of all applicable laws related to
obtaining signatures on a petition, including any prohibitions, and
shall submit a copy of the training materials to the Secretary of
State. The training materials shall be consistent with the regulations
adopted by the Secretary of State pursuant to subdivision begin delete (l) end delete begin insert (m) end insert .

(e) Prior to soliciting signatures for an initiative or referendum
petition, a professional petition firm shall obtain from each person
hired begin insert or retained, directly or indirectly, end insert as a paid circulator a
statement that includes all of the following:

(1) The full name and any assumed name of the person.

(2) The residential street address of the person.

(3) An example of the signature of the person.

(4) A list of the initiative or referendum petitions for which the
person will solicit signatures.

(5) If the person has been convicted of a criminal offense
involving fraud, forgery, identification theft, or a violation of the
Elections Code, information relating to the circumstances of the
conviction, as required by the Secretary of State.

(6) A statement signed by the person acknowledging that he or
she has received training and has read a summary of applicable
laws pertaining to the soliciting of signatures for an initiative or
referendum measure, as prepared by the Secretary of State or
required by the Secretary of State by regulation.

(7) Proof that the person has completed the training required
by subdivision (d).

(8) A photograph of the person that meets all of the following
requirements:

(A) Is a conventional photograph with a plain background.

(B) Shows the face or the face, neck, and shoulders of the
person.

(C) Is prepared and processed for printing in a format prescribed
by the Secretary of State.

(9) If the person is not a resident of the state, a statement that
he or she consents to both of the following:

(A) The jurisdiction of the state for purposes of an investigation
or prosecution by any state or local agency regarding the validity
of the signatures submitted by him or her.

(B) Service of process for any legal action pertaining to the
validity of the signatures submitted by him or her.

(10) Each person hired by a professional petition firm to
circulate a state initiative or referendum petition shall certify the
truth and correctness of the contents of the statement required by
this subdivision under penalty of perjury under the laws of the
State of California, with his or her signature. The certification shall
state the date and the place of execution immediately preceding
the person’s signature.

begin insert

(f) A professional petition firm shall not hire, retain, or
otherwise compensate a person, directly or indirectly, for soliciting
signatures on an initiative or referendum petition if the person has
been convicted, within the past 10 years, of a misdemeanor or
felony offense defined in this code or a felony involving fraud,
forgery, or identification theft.

end insert begin delete

(f)

end delete

begin insert (g) end insert  Within 14 days of the date of execution of the certified
statement described in subdivision (e), a professional petition firm
shall provide to the Secretary of State the name and unique
identifying number of each begin delete paid circulator end delete begin insert person who is hired or
retained, directly or indirectly, to circulate an initiative or
referendum petition and is end insert assigned pursuant to subdivision begin delete (g) end delete
begin insert (h) end insert and shall retain copies of each certified statement for not less
than two years after the petition is filed or two years after the
deadline for submission of the petition to begin delete the end delete elections officials,
whichever is later. The Secretary of State may inspect the records
under reasonable conditions during normal business hours at any
time before the deadline for filing the petition or during the period
specified for retention. For purposes of this subdivision, normal
business hours means those hours that the proponent of the
initiative or referendum measure is normally open for business to
the public. The right of inspection may be enforced by writ of
mandamus issued by a court of competent jurisdiction.

begin delete

(g)

end delete

begin insert (h) end insert  The Secretary of State shall assign a unique three-letter code
to each professional petition firm. Each professional petition firm
shall assign a unique four-digit identifying number to each person
hired begin insert or retained, directly or indirectly, end insert to circulate a state initiative
or referendum petition. The professional petition firm shall include
the seven-digit alphanumeric code consisting of the three-letter
code of the professional petition firm followed by the four-digit
identifying number of the paid circulator on the top of the first
page of the statement required by subdivision (e).

begin delete

(h)

end delete

begin insert (i) end insert  A person hired begin insert or retained, directly or indirectly, end insert by a
professional petition firm to solicit signatures on a state initiative
or referendum petition shall wear a badge provided by the
professional petition firm when the person is soliciting signatures
on the proposed initiative or referendum petition. The badge shall
be worn in a conspicuous place and contain the person’s
photograph and the seven-digit alphanumeric code consisting of
the three-letter code of the professional petition firm followed by
the four-digit identifying number of the paid circulator pursuant
to subdivision begin delete (g) end delete begin insert (h) end insert .

begin delete

(i)

end delete

begin insert (j) end insert  (1) If a person receives money or other valuable
consideration begin insert , directly or indirectly, end insert from a professional petition
firm for the purpose of soliciting signatures of electors on an
initiative or referendum petition and was not duly trained and
certified pursuant to the requirements of this section at the time
the signatures were solicited, the signatures presented on the
petition or sections of the petition circulated by that person shall
not count towards satisfying the requirements of Sections 9030,
9031, begin delete and end delete 9035 begin insert , and 9036 end insert .

(2) The Secretary of State shall provide to each county elections
official a list of the names and unique identifying numbers for begin delete paid
circulators end delete begin insert persons hired or retained, directly or indirectly, as
provided pursuant to this section end insert . The county elections officials
shall not count signatures on a petition or sections of a petition
circulated by paid circulators if the name and unique identifying
number of the paid circulator on the petition pursuant to paragraph
(3) of subdivision (b) of Section 9022 does not appear on the list
provided by the Secretary of State.

begin delete

(j)

end delete

begin insert (k) end insert  The certified statement of a petition circulator required by
subdivision (e) shall be effective for two years from the date of
execution. If the information in a person’s statement changes during
the two-year effective period of the statement, the professional
petition firm shall obtain an amended statement and provide it to
the Secretary of State within 10 business days or before the person
continues to circulate initiative or referendum petitions, whichever
comes first.

begin delete

(k)

end delete

begin insert ( end insert begin insert l end insert begin insert ) end insert  The Secretary of State shall revoke the registration of a
professional petition firm registered under this section that, in the
course of circulating an initiative or referendum petition or hiring
individuals to circulate an initiative or referendum petition, engages
in fraud, misrepresentation, or any conduct described in Section
18600, 18601, or 18602.

begin delete

(l)

end delete

begin insert (m) end insert  The Secretary of State shall adopt regulations necessary to
implement this section, including, but not limited to, regulations
that do both of the following:

(1) Establish procedures for registering professional petition
firms.

(2) Establish criteria for a training program for persons hired
begin insert or retained, directly or indirectly, end insert by a professional petition firm
to solicit signatures of electors on an initiative or referendum
petition. The training program shall include, but is not limited to,
instruction to circulators regarding how to avoid fraud,
misrepresentation, and other misconduct in the circulation of
petitions and instruction on compliance with, and consequences
for violations of, the requirements of this section.

SEC. 11.  

Section 9038 is added to the Elections Code, to read:

9038.  

(a) As used in this section, “accounts” means all of the
following:

(1) A contract entered into for the specific purpose of soliciting
signatures on a petition.

(2) An employment manual or training materials provided to
persons who solicit signatures on a petition.

(3) Payroll records for each employee soliciting signatures on
a petition showing hours worked, number of signatures collected,
and amounts paid.

(4) Records identifying the amount and purpose of each payment
received from a proponent of an initiative or referendum measure
or from any other person who pays the professional petition firm
for signatures on a petition.

(5) Copies of petition sections circulated by persons who receive
money or other valuable consideration for the specific purpose of
soliciting signatures of electors on a petition.

(b) A professional petition firm, as defined in subdivision (a)
of Section 9037, that pays any person money or other valuable
consideration for the specific purpose of soliciting signatures of
electors on an initiative or referendum petition shall keep detailed
accounts, as follows:

(1) The accounts shall be current as of not later than the seventh
calendar day after the date a payment is made to a person for
soliciting signatures on the petition.

(2)  begin insert (A) end insert begin insert   end insert The accounts shall be preserved for at least two years
after the deadline for filing the petition for verification of signatures
or at least two years after the date the petition is filed under Section
9030, whichever is later.

begin insert

(B) The records in the accounts described in paragraph (5) of
subdivision (a) shall be stored in a secure location and destroyed
at the end of the period described in subparagraph (A).

end insert

(c) The Secretary of State may review the accounts of each
professional petition firm described in subdivision (b) in the
manner prescribed by regulations adopted by the Secretary of State.

(d) The Secretary of State may inspect the accounts of a
professional petition firm described in subdivision (b) under
reasonable conditions during normal business hours at any time
before the deadline for filing the petition or during the period
specified for retention of the accounts under paragraph (2) of
subdivision (b). For purposes of this subdivision, normal business
hours means those hours that the proponent of the initiative or
referendum measure is normally open for business to the public.
The right of inspection may be enforced by writ of mandamus
issued by a court of competent jurisdiction.

(e) If a professional petition firm does not produce accounts
upon demand of the Secretary of State, both of the following shall
apply:

(1) There is a rebuttable presumption that a violation of Section
9037 has occurred.

(2) The professional petition firm shall not solicit additional
signatures on the petition until the professional petition firm makes
the accounts available to the Secretary of State for inspection. Any
signatures solicited in violation of this paragraph shall not be
counted towards satisfying the requirements of Sections 9030,
9031, 9035, and 9036.

(f) This section shall not be construed to require that accounts
be available for inspection by the public.

SEC. 12.  

Section 9039 is added to the Elections Code, to read:

9039.  

(a) An initiative or referendum petition section shall be
deemed invalid and shall not be used by an elections official for
the purpose of determining whether the initiative or referendum
measure qualifies for the ballot if the begin insert requirements of Section 9036,
9037, or 9038 are not satisfied or if end insert signatures are solicited and
submitted by a person who, in connection with the circulation of
the initiative or referendum petition, intentionally engages in fraud,
misrepresentation, or any conduct described in Section 18600,
18601, or 18602.

(b) The relief provided for in subdivision (a) may be obtained
through a civil action brought by the Secretary of State or any
elector upon a showing by clear and convincing evidence that the
requirements for invalidation described in subdivision (a) have
been satisfied. Any civil action brought pursuant to this section
shall have priority over all other matters.

(c) The relief provided for in subdivision (a) shall not be
available after the Secretary of State has certified that an initiative
or referendum petition has qualified for the ballot.

(d) If a local elections official is notified of or discovers any
conduct described in subdivision (a), the local elections official
shall promptly notify the Secretary of State.

SEC. 13.  

Section 18602 of the Elections Code is amended to
read:

18602.  

A person working for the proponent or proponents of
a statewide initiative or referendum measure who covers or
otherwise obscures the summary of the measure prepared by the
Attorney General or the disclosure statement printed on the petition
pursuant to Section 9009.6 from the view of a prospective signer
is guilty of a misdemeanor.

begin delete

SEC. 14.  

The provisions of this act shall take effect January
1, 2014, and shall apply to any initiative or referendum petition
for which the Attorney General issued a circulating title and
summary on or after October 1, 2013.

end delete

begin delete SEC. 15. end delete
begin insert SEC. 14. end insert   

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.