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 9012, 9021, 9022, 9030, begin delete and 9031 end delete begin insert 9031, 18601, and 18602 end insert of, and to add Sections 9009.5 begin delete and end delete begin insert , 9009.6, end insert 9036 begin insert , 9037, 9038, and 9039 end insert 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, and requires the person soliciting signatures to declare 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.

(2) Existing law requires local elections officials to perform various duties with respect to statewide initiative petitions, including determining the total number of signatures affixed to the petitions, transmitting that information to the Secretary of State, and performing a random sampling technique for verification of signatures on specified petitions. Once an initiative measure is certified to have been signed by a specified number of voters, existing law provides that a petition setting forth the text of the proposed statute or amendment to the Constitution may be presented to the Secretary of State.

This bill would require at least 20% of the signatures on a petition for an initiative begin delete measure, and at least 20% of the signatures used to verify the qualification of an initiative measure, end delete begin insert measure end insert to be begin delete collected and end delete submitted begin delete by persons who qualify as end delete begin insert on a petition or petition section that was circulated by end insert a person who does not receive money or other valuable consideration for the specific purpose of begin delete obtaining end delete begin insert soliciting end insert signatures of electors, and would require those persons to sign an affidavit under penalty of perjury, 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 begin delete collected and end delete submitted by persons begin delete who qualify as a person who does end delete begin insert who do end insert not receive money or other valuable consideration for the specific purpose of begin delete obtaining end delete begin insert soliciting end insert signatures of electors, as specified. begin delete The bill would include specified findings and declarations of the Legislature in support of these policies. end delete

begin insert

This bill would prohibit a person from paying money or other valuable consideration to another person for soliciting signatures of electors on an initiative or referendum petition, and would prohibit a person from receiving money or other valuable consideration for soliciting signatures of electors on an initiative or referendum petition, unless the person soliciting signatures registers with the Secretary of State and completes a training program, as specified. The bill would require the Secretary of State to adopt regulations establishing registration procedures and establishing a training program, as specified. The bill also would require a proponent of an initiative or referendum petition who pays any person to solicit signatures of electors on the petition to keep detailed accounts, as defined, and would require the Secretary of State to regularly review the accounts. The bill would include specified findings and declarations of the Legislature in support of these policies.

end insert

(3) 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.

This 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 specific 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 specific purpose of obtaining signatures of electors to be printed on bright yellow paper in a contrasting color ink. The bill also would require each section of a petition for a proposed initiative measure to bear a unique identifying number.

begin insert

(4) 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.

end insert begin insert

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.

end insert begin insert

(5) Existing law provides that a person who engages in specified conduct in connection with the collection of signatures on any state or local initiative, referendum or recall petition is guilty of a misdemeanor.

end insert begin insert

This bill would require a statewide initiative or referendum petition section to be deemed invalid and would prohibit an elections official from using the petition section for the purpose of determining if the initiative or referendum measure qualifies for the ballot 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 in which the plaintiff has the burden of showing a violation by clear and convincing evidence.

end insert begin insert

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 insert begin delete

(4)

end delete

begin insert (6) 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 begin delete powerful,
out-of-state end delete begin insert financially powerful end insert 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 begin delete volunteers and grassroots organizations end delete begin insert voters end insert to
participate in direct democracy, begin insert now the integrity of end insert the initiative
process has been corrupted by well financed special interests.

(5) Whether an initiative measure qualifies for the ballot no
longer depends upon how much the state’s voters truly support the
proposed law but, rather, depends upon how much money a
proponent is willing to spend to place the proposal on the ballot. begin insert end insert
begin insert Thus, the presence of an initiative measure on the ballot is no
longer viewed as an expression of a minimum amount of public
support but, rather, the willingness of a special interest to pay a
sufficient number of petition circulators to use whatever means
necessary to qualify the initiative measure for the ballot. end insert

(6) Whereas initiative petitions were originally circulated by
volunteer and grassroots organizations, the demonstration of
community support for an initiative petition has given way to paid
circulators who work at the behest of well-funded individuals and
begin delete organizations. end delete

begin delete (7) end delete begin delete   end delete begin delete In end delete begin insert organizations. In end insert 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.

begin insert

(7) Due to the prevalence of paid circulators, 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.
Additionally, voters have been overwhelmed by the number and
complexity of the proposals.

end insert

(8) The prevalence of paid circulators has begin insert also end insert 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 has no incentive to educate voters about an initiative
petition but, instead, is motivated solely 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.

(9)  begin delete The end delete begin insert Because the end insert use of paid circulators has been associated
with coercive and misleading tactics to collect begin delete signatures from the
public. As a result, end delete begin insert signatures, end insert the public is dissatisfied with the
initiative process.

begin delete

(10) The presence of an initiative measure on the ballot is no
longer viewed as an expression of a minimum amount of public
support but, rather, the willingness of a special interest to pay a
sufficient number of petition circulators to use whatever means
necessary to qualify the initiative measure for the ballot.

end delete begin delete

(11) 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. Additionally, voters have been overwhelmed by the
number and complexity of the proposals.

end delete begin delete

(12)

end delete

begin insert (10) end insert  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 begin insert from informed voters end insert 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.

SEC. 2.  

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 specific purpose of begin delete obtaining end delete
begin insert soliciting end insert signatures of electors, begin delete as described in subdivision (c)
of end delete begin insert for purposes of end insert 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 specific purpose of begin delete obtaining end delete begin insert soliciting end insert signatures of electors
shall be printed on bright yellow paper in a contrasting color ink.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 9009.6 is added to the end insert begin insert Elections Code end insert begin insert , to read: end insert

begin insert

begin insert 9009.6. end insert   

(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
all of the following:

(1) Immediately prior to the portion of the petition for voters’
signatures, printed names, and residence addresses, the following
language shall be printed in 18-point boldface type:
“WARNING TO THE PUBLIC: THIS PETITION IS BEING
CIRCULATED BY A PERSON PAID TO OBTAIN YOUR
SIGNATURE. READ THE CONTENTS OF THIS PETITION
BEFORE SIGNING.”

(2) Immediately following the language required by paragraph
(1) 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 $50,000 or more and,
if an individual, his or her occupation and the identity of his or
her employer).”

(b) If the information for the disclosure statement described in
paragraph (2) of subdivision (a) changes, the disclosure statement
on the petition shall be updated within 14 days.

end insert

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

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.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

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.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

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.

(b) A person who begin delete qualifies to collect end delete begin insert solicits end insert and begin delete submit end delete begin insert submits end insert
signatures for a proposed initiative measure and begin delete who is a person
who end delete does not receive money or other valuable consideration for
the specific purpose of begin delete obtaining end delete begin insert soliciting end insert signatures of electors
begin delete within the meaning of subdivision (c) of Section 9036 end delete shall sign
an affidavit that is prepared by the Secretary of State and that
declares all of the following:

(1) The person begin delete is a person who end delete does not receive money or other
valuable consideration for begin delete the specific purpose of obtaining end delete
begin insert soliciting end insert signatures of electors begin delete within the meaning of subdivision
(c) of Section 9036 end delete .

(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 begin delete requirements end delete begin insert requirement end insert set forth in begin delete subdivisions (a)
and (b) end delete begin insert subdivision (a) end insert of Section 9036.

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

(4) 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.

(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 begin delete the end delete begin insert his or her end insert signature begin delete of his
or her name end delete . 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. Unless otherwise proven upon official
investigation, it shall be presumed that the petition presented
contains the signatures of the requisite number of qualified voters.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

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 eight 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 begin delete by persons who qualify under end delete begin insert for purposes
of end insert subdivision begin delete (c) end delete begin insert (a) end insert 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 begin delete sufficient, end delete begin insert sufficient end insert or begin insert , end insert in the case of an initiative petition begin insert , end insert
the number of signatures submitted begin delete by persons who qualify under end delete
begin insert for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert of Section 9036 is less than 20
percent of the total number of signatures submitted, 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 begin delete by persons who
qualify under end delete begin insert for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert of Section 9036
is equal to or greater than 20 percent of the number of signatures
submitted, the Secretary of State shall immediately so notify the
elections officials.

(d) Within 30 days after this notification, excluding Saturdays,
Sundays, and holidays, the elections official shall determine the
number of qualified voters who have signed the petition. 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, including, in the case of an initiative
petition, the total number of qualified voters who signed the
sections of the petition submitted begin delete by persons who qualify under end delete
begin insert for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert of Section 9036, 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 begin delete by persons who
qualify under end delete begin insert for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert of Section 9036
does not equal 95 percent of the number of qualified voters needed
to satisfy the begin delete requirements of end delete begin insert requirement set forth in subdivision
(a) of end insert Section 9036, 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 begin delete by persons who qualify under end delete begin insert for purposes of end insert subdivision
begin delete (c) end delete begin insert (a) end insert of Section 9036 total more than 110 percent of the number
of qualified voters needed to satisfy the begin delete requirements of end delete
begin insert requirement set forth in subdivision (a) of end insert Section 9036, the petition
shall be deemed to qualify as of the date of receipt by the Secretary
of State of certificates showing the petition to have reached the
110 percent, 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.

begin delete SEC. 7. end delete
begin insert SEC. 8. end insert   

Section 9031 of the Elections Code is amended to read:

9031.  

(a) 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 or, in the case of an initiative petition, the number of
valid signatures begin delete collected by persons who qualify under end delete begin insert submitted
for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert of Section 9036 is within 95 to
110 percent of the number of signatures begin delete required by end delete begin insert needed to
satisfy the requirement of subdivision (a) of end insert Section 9036, the
Secretary of State shall order the examination and verification of
each signature filed, and shall so notify the elections officials.

(b) Within 30 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 begin delete by persons who qualify
under end delete begin insert for purposes of end insert subdivision begin delete (c) end delete begin insert (a) end insert 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.

begin delete SEC. 8. end delete
begin insert SEC. 9. end insert   

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

9036.  

(a) At least 20 percent of the signatures begin delete of registered
voters collected and end delete submitted pursuant to Section 9035 shall begin delete have
been obtained by persons who do end delete begin insert be presented on a petition or
section of a petition that was circulated by a person who does end insert not
receive money or other valuable consideration begin insert exclusively or
primarily end insert for the specific purpose of begin delete obtaining end delete begin insert soliciting end insert signatures
of electors on begin delete a petition for a proposed initiative measure. end delete begin insert the
petition. end insert

begin delete

(b) At least 20 percent of the signatures collected and used to
verify the qualification of an initiative measure pursuant to Sections
9030 and 9031 shall have been obtained by persons who do not
receive money or other valuable consideration for the specific
purpose of obtaining signatures of electors on a petition for a
proposed initiative measure.

(c) For purposes of this article, the following persons qualify
as a “person who does not receive money or other valuable
consideration for the specific purpose of obtaining signatures of
electors”:

(1) A person who does not receive money or other valuable
consideration exclusively or primarily for the purpose of obtaining
signatures of electors on a petition for a proposed initiative
measure.

(2)

end delete

begin insert (b) end insert   begin insert (1) end insert begin insert   end insert A person who is an employee begin insert or member end insert of begin delete an end delete begin insert a
nonprofit end insert organization, other than an organization in the business
of begin delete collecting end delete begin insert soliciting end insert signatures on initiative petitions, who begin delete is
paid by end delete begin insert receives money or other valuable consideration from end insert the
organization and as part of that employment begin delete obtains end delete begin insert or membership
solicits end insert signatures for the qualification of an initiative measure
begin insert 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 end insert .

begin insert

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

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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).

end insert begin insert

(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).

end insert begin insert

(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).

end insert begin delete

(d)

end delete

begin insert (e) end insert  This section shall not be construed to preclude a person who
receives nominal, non-monetary benefits, including food,
transportation, or lodging, from qualifying under begin delete subdivision (c). end delete
begin insert 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. end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 9037 is added to the end insert begin insert Elections Code end insert begin insert , to read: end insert

begin insert

begin insert 9037. end insert   

(a) A person shall not pay money or other valuable
consideration to another person for the specific purpose of
soliciting signatures of electors on an initiative or referendum
petition, and a person shall not receive money or other valuable
consideration for the specific purpose of soliciting signatures of
electors on an initiative or referendum petition, unless the person
soliciting the signatures does both of the following:

(1) Registers with the Secretary of State in the manner
prescribed by subdivision (c) and by regulations adopted by the
Secretary of State.

(2) Completes a training program prescribed by regulations
adopted by the Secretary of State.

(b) A person who is an employee or member of a nonprofit
organization, other than an organization in the business of
soliciting signatures on initiative or referendum 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 or referendum
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 for purposes of subdivision (a),
unless a primary purpose of that employment or membership is to
solicit signatures on an initiative or referendum petition.

(c) A person who is required to register with the Secretary of
State pursuant to subdivision (a) shall file an application with the
Secretary of State that includes all of the following:

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

(2) The residential street address of the applicant.

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

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

(5) If the applicant 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 applicant acknowledging that he
or she has read and understands applicable laws pertaining to the
soliciting of signatures for an initiative or referendum measure.

(7) Proof that the applicant has completed the training required
by paragraph (2) of subdivision (a).

(8) A photograph of the applicant 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
applicant.

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

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

(d) If an applicant complies with subdivision (c), not later than
five business days after the applicant submits the application, the
Secretary of State shall register the applicant and assign the
applicant a registration number.

(e) The Secretary of State shall deny the registration of a person
who has been convicted of a criminal offense involving fraud,
forgery, or identification theft in any state, or a violation of the
Elections Code, during the five-year period prior to the date of
the application.

(f) If a person receives money or other valuable consideration
for the specific purpose of soliciting signatures of electors on an
initiative or referendum petition and the person was not registered
pursuant to 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, and 9035.

(g) A person registered under this section shall wear a badge
provided by the proponent of the initiative or referendum measure
that evidences the person’s registration when the person is
soliciting signatures on the proposed initiative or referendum
petition. The badge shall contain the person’s photograph and
registration number. The Secretary of State shall prescribe the
form of the registration badge by regulation.

(h) The registration of a petition circulator under this section
shall be effective for two years from the date the Secretary of State
assigns a registration number to the applicant. Upon expiration
of the registration, the applicant may reapply in accordance with
subdivision (c). If an applicant’s information changes during the
period of his or her registration, the applicant shall amend his or
her application and file the amended application with the Secretary
of State within 10 business days. If the changes relate to the
circulation of specific initiative or referendum petitions under
paragraph (4) of subdivision (c), the applicant’s amended
application shall be filed with and approved by the Secretary of
State prior to the circulation of an initiative or referendum petition
that was not previously identified on the applicant’s registration.
The Secretary of State shall approve or deny an amended
application within five business days from the filing of the amended
application.

(i) The Secretary of State shall revoke the registration of a
person registered under this section who, in the course of
circulating an initiative or referendum petition, engages in fraud,
misrepresentation, or any conduct described in Section 18600,
18601, or 18602.

(j) 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 persons who receive
money or other valuable consideration for the specific purpose of
soliciting signatures of electors on an initiative or referendum
petition.

(2) Establish a training program for persons who receive money
or other valuable consideration for the specific purpose of
soliciting 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.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 9038 is added to the end insert begin insert Elections Code end insert begin insert , to read: end insert

begin insert

begin insert 9038. end insert   

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

(1) A contract entered into by a proponent of an initiative or
referendum measure and any person 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
made by the proponent of an initiative or referendum measure to
any contractor or subcontractor soliciting 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 proponent of an initiative or referendum measure who
pays any person money or other valuable consideration for the
specific purpose of soliciting signatures of electors on a petition
shall keep detailed accounts. 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.

(c) The Secretary of State shall review the accounts of each
proponent described in subdivision (b) in the manner, and
according to a regular schedule, prescribed by regulations adopted
by the Secretary of State.

(d) The Secretary of State may inspect the accounts of a
proponent 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 subdivision (e). 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) A proponent of an initiative or referendum measure shall
preserve the accounts pertaining to an initiative or referendum
petition 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.

(f) If a proponent of an initiative or referendum measure 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 proponent shall not solicit additional signatures on the
petition until the proponent 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.

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

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 9039 is added to the end insert begin insert Elections Code end insert begin insert , to read: end insert

begin insert

begin insert 9039. end insert   

(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 if the initiative or referendum measure
qualifies for the ballot if the signatures are solicited and submitted
by a person who engages in fraud, misrepresentation, or any
conduct described in Section 18600, 18601, or 18602.

(b) The Secretary of State or any elector may enforce this section
by a civil action in which the plaintiff has the burden of showing
a violation of this section by clear and convincing evidence.

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 18601 of the end insert begin insert Elections Code end insert begin insert is amended to
read: end insert

18601.  

begin delete Any end delete begin insert (a) end insert begin insert   end insert begin insert A end insert person working for the proponent or
proponents of an initiative or referendum measure or recall petition
who refuses to allow a prospective signer to read the measure or
petition is guilty of a misdemeanor.

begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert An arrest or conviction pursuant to this section begin insert in
connection with a local initiative or referendum measure or local
recall petition end insert shall not invalidate or otherwise affect the validity
of any signature begin delete obtained end delete begin insert solicited end insert by the person arrested or
convicted.

begin insert

(2) A conviction pursuant to this section in connection with a
statewide initiative or referendum measure or statewide recall
petition shall invalidate the signatures solicited by the person
convicted.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 18602 of the end insert begin insert Elections Code end insert begin insert is amended to
read: end insert

18602.  

begin delete Any end delete begin insert A end insert 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 begin insert or the disclosure statement printed on the petition
pursuant to Section 9009.6 end insert from the view of a prospective signer
is guilty of a misdemeanor.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert 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 insert

begin delete SEC. 9. end delete
begin insert SEC. 16. 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.