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 9012, 9021, 9022, 9030, 9031, begin delete 18601, end delete 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, 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.

begin delete

(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.

end delete begin 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.

end insert begin insert

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.

end insert

This bill would require at least 20% of the signatures on a petition for an initiative measure to be submitted on a petition or petition section that was circulated by a person who does not receive money or other valuable consideration for the specific purpose of soliciting 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 submitted by persons who do not receive money or other valuable consideration for the specific purpose of soliciting signatures of electors, as specified.

begin delete

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 delete begin insert

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 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 as a paid circulator a certified statement, as specified. 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 paid circulators, 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.

end insert begin insert

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.

end insert begin insert

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 begin delete specific end delete 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 begin delete specific end delete 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.

(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.

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.

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

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 begin delete if end delete begin insert whether end insert 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 begin delete in which the plaintiff has the burden of end delete begin insert upon a end insert showing begin delete a violation by end delete begin insert of end insert clear and convincing evidence.

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.

(6) 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 begin delete well
financed end delete begin insert well-financed end insert special interests.

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

(6) Whereas initiative petitions were originally circulated by
volunteer and grassroots organizations, begin delete the demonstration of
community support for an initiative petition has given way to paid
circulators who work at the behest of end delete well-funded individuals and
organizations begin insert that promote narrow interests may rely exclusively
on paid circulators to qualify an initiative measure that does not
have broad community support end insert . 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)  begin insert 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 who do not understand the contents of the petition. end insert
Due to the prevalence of begin insert professional petition firms and end insert paid
circulators, begin insert special interests may qualify an initiative measure for
the ballot without the necessary minimum showing of public
support. As a result, end insert 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. begin delete Additionally, voters have been
overwhelmed by the number and complexity of the proposals. end delete

begin insert

(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.

end insert begin delete

(8)

end delete

begin insert (9) end insert  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 begin delete has no end delete begin insert does not need an end insert incentive to educate voters
about an initiative petition but, instead, begin delete is end delete begin insert may be end insert motivated solely
begin insert by financial reasons end insert 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.

begin delete

(9)

end delete

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

begin insert

(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.

end insert begin delete

(10)

end delete

begin insert (12) 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 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.

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 begin delete specific end delete 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 begin delete specific end delete purpose of soliciting signatures of electors shall
be printed on bright yellow paper in a contrasting color ink.

SEC. 3.  

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
begin delete all of end delete the begin delete following: end delete

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

begin delete

(2)

end delete

begin insert (b) end insert   begin delete Immediately following end delete begin insert On each state initiative petition,
immediately prior to that portion of the petition for voters’
signatures, printed names, and residence addresses, but after end insert the
language required by begin delete paragraph (1) end delete begin insert subdivision (a), where
applicable, end insert 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 begin delete $50,000 end delete begin insert fifty thousand
dollars ($50,000) end insert or more and, if an individual, his or her
occupation and the identity of his or her employer).”

begin delete

(b)

end delete

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

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.

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.

(b) A person who solicits begin delete and submits end delete 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 sign an affidavit that is prepared by the Secretary of
State and that declares all of the following:

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

(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.

begin insert

(3) The person’s unique identifying number assigned pursuant
to subdivision (g) of Section 9037.

end insert begin delete

(3)

end delete

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

begin delete

(4)

end delete

begin insert (5) end insert  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 his or her begin delete signature. end delete begin insert signature. end insert
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. begin delete Unless otherwise proven upon official
investigation, it shall be presumed that the petition presented
contains the signatures of the requisite number of qualified voters. end delete

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 begin delete eight end delete begin insert 10 end insert 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 begin delete 20
percent of the total number of signatures submitted, end delete begin insert the total
number needed to satisfy the requirement of that subdivision, end insert 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 begin delete 20
percent of the number of signatures submitted, end delete begin insert the total number
needed to satisfy the requirement of that subdivision, end insert the Secretary
of State shall immediately so notify the elections officials.

(d) Within begin delete 30 end delete begin insert 35 end insert days after this notification, excluding
Saturdays, Sundays, and holidays, the elections official shall
determine the number of qualified voters who have signed the
petition begin insert and the number of qualified voters who have signed a
section of the petition that satisfies the requirement of subdivision
(a) of Section 9036 end insert . 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 begin delete examination, including, in the case of an initiative
petition, the total number of qualified voters who signed the
sections of the petition submitted for purposes of subdivision (a)
of Section 9036, end delete begin insert examination end insert 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 begin delete set
forth in subdivision (a) of Section 9036, end delete begin insert of that subdivision, end insert 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 begin delete set forth in subdivision (a) of Section
9036, end delete begin insert of that subdivision, end insert the petition shall be deemed to qualify
as of the date of receipt by the Secretary of State of certificates
showing the petition begin delete to have reached the 110 percent, end delete begin insert received
more than 110 percent of the qualified voters needed, end insert 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) 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 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 begin delete subdivision (a) of
Section 9036, end delete begin insert that subdivision, end insert the Secretary of State shall order
the examination and verification of each signature filed, and shall
so notify the elections officials.

(b) Within begin delete 30 end delete begin insert 35 end insert 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.

begin insert

(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.

end insert

SEC. 9.  

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

9036.  

(a) At least 20 percent of the signatures submitted
begin delete pursuant to end delete begin insert to satisfy the requirements of 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 begin delete nominal, non-monetary benefits, end delete begin insert nominal benefits other
than money, end insert 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.

SEC. 10.  

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

9037.  

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

begin delete

(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.

end delete

begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert 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. end insert

begin insert

(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.

end insert begin insert

(d) A professional petition firm shall provide training to each
paid petition circulator, 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 (l).

end insert begin delete

(c)

end delete

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

(1) The full name and any assumed name of the begin delete applicant. end delete
begin insert person. end insert

(2) The residential street address of the begin delete applicant. end delete begin insert person. end insert

(3) An example of the signature of the begin delete applicant. end delete begin insert person. end insert

(4) A list of the initiative or referendum petitions for which the
begin delete applicant end delete begin insert person end insert will solicit signatures.

(5) If the begin delete applicant end delete begin insert person end insert 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 begin delete applicant end delete begin insert person end insert acknowledging
that he or she has begin insert received training and has end insert read begin delete and understands end delete
begin insert a summary of end insert applicable laws pertaining to the soliciting of
signatures for an initiative or referendum measure begin insert , as prepared
by the Secretary of State or required by the Secretary of State by
regulation end insert .

(7) Proof that the begin delete applicant end delete begin insert person end insert has completed the training
required by begin delete paragraph (2) of end delete subdivision begin delete (a). end delete begin insert (d). end insert

(8) A photograph of the begin delete applicant end delete begin insert person end insert 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
begin delete applicant. end delete begin insert person. end insert

(C) Is prepared and processed for printing begin delete as end delete begin insert in a format end insert
prescribed by the Secretary of State.

(9) If the begin delete applicant end delete begin insert person end insert 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)  begin delete The applicant end delete begin insert Each person hired by a professional petition
firm to circulate a state initiative or referendum petition end insert shall
certify the begin delete content of the application as to its end delete truth and correctness begin delete , end delete
begin insert of the contents of the statement required by this subdivision end insert under
penalty of perjury under the laws of the State of California, with
his or her signature. The begin delete applicant end delete begin insert certification end insert shall state the date
and the place of execution begin delete on the application end delete immediately
preceding begin delete his or her end delete begin insert the person’s end insert signature.

begin delete

(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.

end delete begin insert

(f) 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 paid circulator assigned pursuant to
subdivision (g) 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 the 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.

end insert begin insert

(g) 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 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).

end insert begin delete

(g)

end delete

begin insert (h) end insert  A person begin delete registered under this section end delete begin insert hired by a professional
petition firm to solicit signatures on a state initiative or referendum
petition end insert shall wear a badge provided by the begin delete proponent of the
initiative or referendum measure that evidences the person’s
registration end delete begin insert professional petition firm end insert when the person is soliciting
signatures on the proposed initiative or referendum petition. The
badge shall begin insert be worn in a conspicuous place and end insert contain the
person’s photograph and begin delete registration number. The Secretary of
State shall prescribe the form of the registration badge by
regulation. end delete begin insert the seven end insert begin insert -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 (g). end insert

begin insert

(i) (1) If a person receives money or other valuable
consideration 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, and 9035.

end insert begin insert

(2) The Secretary of State shall provide to each county elections
official a list of the names and unique identifying numbers for paid
circulators. 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.

end insert begin delete

(h)

end delete

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

begin delete

(i)

end delete

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

begin delete

(j)

end delete

begin insert (l) 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 begin delete persons who receive
money or other valuable consideration for the specific purpose of
soliciting signatures of electors on an initiative or referendum
petition end delete begin insert professional petition firms end insert .

(2) Establish begin insert criteria for end insert a training program for persons begin delete who
receive money or other valuable consideration for the specific
purpose of soliciting end delete begin insert hired by a professional petition firm to solicit end insert
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 begin delete by a proponent of an initiative or
referendum measure and any person end delete 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
begin delete made by the end delete begin insert received from a end insert proponent of an initiative or
referendum measure begin delete to any contractor or subcontractor soliciting end delete
begin insert or from any other person who pays the professional petition firm
for end insert 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 begin delete proponent of an initiative or referendum measure who end delete
begin insert professional petition firm, as defined in subdivision (a) of Section
9037, that end insert pays any person money or other valuable consideration
for the specific purpose of soliciting signatures of electors on begin delete a end delete begin insert an
initiative or referendum end insert petition shall keep detailed begin delete accounts. end delete
begin insert accounts, as follows: end insert begin delete The end delete

begin insert (1) end insert begin insert   end insert begin insert The end insert 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.

begin insert

(2) 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.

end insert

(c) The Secretary of State begin delete shall end delete begin insert may end insert review the accounts of each
begin delete proponent end delete begin insert professional petition firm end insert described in subdivision (b)
in the begin delete manner, and according to a regular schedule, end delete begin insert manner end insert
prescribed by regulations adopted by the Secretary of State.

(d) The Secretary of State may inspect the accounts of a
begin delete proponent end delete begin insert professional petition firm end insert 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 begin delete subdivision (e) end delete
begin insert paragraph (2) of subdivision (b) end insert . 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

(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)

end delete

begin insert (e) end insert  If a begin delete proponent of an initiative or referendum measure end delete
begin insert professional petition firm end insert 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 begin delete proponent end delete begin insert professional petition firm end insert shall not solicit
additional signatures on the petition until the begin delete proponent end delete
begin insert professional petition firm end insert 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.

begin delete

(g)

end delete

begin insert (f) end insert  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 begin delete if end delete begin insert whether end insert the initiative or referendum
measure qualifies for the ballot if the signatures are solicited and
submitted by a person who begin insert , in connection with the circulation of
the initiative or referendum petition, intentionally end insert engages in fraud,
misrepresentation, or any conduct described in Section 18600,
18601, or 18602.

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

begin insert

(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.

end insert begin insert

(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.

end insert

begin delete

SEC. 13.  

Section 18601 of the Elections Code is amended to
read:

18601.  

(a) A 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.

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

(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 delete

begin delete SEC. 14. end delete
begin insert SEC. 13. end insert   

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

begin delete SEC. 16. end delete
begin insert SEC. 15. 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.