Amended in Senate August 12, 2013

Amended in Senate June 26, 2013

Amended in Assembly May 24, 2013

Amended in Assembly April 16, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 857

Introduced by Assembly Member Fong

February 21, 2013

An act to amend Sections 9008, 9021, 9022, 9030, 9031, and 18602 of, begin delete and end delete to add Sections 9009.5, 9009.6, 9036, begin delete 9037, 9038, and 9039 end delete begin insert and 9037 end insert to, begin insert and to repeal Section 101 of, end insert 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. Existing law requires that each section of a petition for an initiative or referendum measure have attached thereto the declaration of the person soliciting the signatures that includes specified information regarding the person and a statement 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 The bill would require that the declaration include a statement of consent to jurisdiction of the state and service of process, as specified, by the person soliciting signatures if he or she is not a resident of the state. end delete

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

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

This bill would require at least 20% of the signatures that are required to qualify an initiative measure to be solicited by a person who does not receive money or other valuable consideration for the specific purpose of soliciting signatures of electors, and would require that the declaration of such a person include additional content, 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 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 or retained, directly or indirectly, 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 or retained, directly or indirectly, as a paid circulator a certified statement, as specified. The bill would prohibit a professional petition firm from hiring, retaining, or otherwise compensating a person, directly or indirectly, for soliciting signatures on an initiative or referendum petition if the person has been convicted, within the past 10 years, of specified criminal offenses. 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 person hired or retained, directly or indirectly, to circulate an initiative or referendum petition, 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 delete begin delete

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 delete

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

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

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

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

(5) 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 begin insert delete that requirement and would end insert 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.

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

This bill would require a statewide initiative or referendum petition section to be deemed invalid, and would prohibit use of the petition section for the purpose of determining whether 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 upon a showing of clear and convincing evidence.

(7) 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.
begin delete Whereas the initiative was reserved by the voters for the purpose
of allowing voters to participate in direct democracy, now the
integrity of the initiative process has been corrupted by
well-financed special interests. end delete

(5)  begin delete Due to the growth of paid signature gathering, the end delete begin insert The end insert
presence of an initiative measure on the ballot is no longer
necessarily viewed as an expression of a minimum amount of
public support begin delete but, rather, often end delete begin insert , but, instead, end insert is begin insert often viewed as end insert
the result of a special interest willing to pay begin delete a sufficient number
of petition circulators end delete begin insert the necessary amount of money end insert to qualify
begin delete the end delete begin insert an end insert initiative measure for the ballot. begin insert As a result, the integrity
of the initiative process is threatened by a crowded ballot with
confusing proposals and the perception of fraud and
misrepresentation in the signature gathering phase. end insert

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

(7)  begin delete Professional petition firms hire paid end delete begin insert As has been the case
since the initiative power was created, initiatives that have broad
public support continue to qualify for the ballot through the efforts
of volunteers and grassroots organizations, but the availability of
paid circulators has led to an excess of complex proposals that
lack a broad level of public support. Paid end insert circulators begin delete to end delete gather as
many signatures as possible in the least amount of time begin delete . Often the
signatures are obtained without providing electors an explanation
of end delete begin insert , and may not provide electors with a full explanation of end insert the true
purpose and effect of the proposed initiative measure. begin delete Paid
circulators are also instructed to solicit signatures from electors
even if an elector does not understand the contents of the petition.
Due to the prevalence of professional petition firms and paid
circulators, end delete begin insert Without a better measure of public support, end insert special
interests may qualify an initiative measure for the ballot begin delete without
the necessary minimum showing of public support. As a result,
the statewide election ballot is increasingly cluttered with initiative
measures that do not have enough public support to justify the
expenses of administering the election for those particular
proposals. end delete begin insert regardless of the actual content of the proposal. end insert

begin delete

(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 delete begin delete

(9)

end delete

begin insert (8) end insert  The begin delete prevalence of paid circulators has also led to instances
of fraud and misrepresentation, and the erosion of end delete begin insert prevalent
influence of money in the process of soliciting signatures for
initiative petitions has eroded end insert public confidence in the initiative
process. The most popular means of paying petition circulators is
based on the number of signatures a person collects. Under a
payment-per-signature arrangement, a paid circulator does not
need an incentive to educate voters about an initiative petition but,
instead, may be motivated solely by financial reasons to gather as
many signatures as possible. begin delete 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. end delete

begin delete

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

end delete begin delete

(11)

end delete

begin insert (9) end insert   begin delete Unlike paid circulators, a widespread end delete begin insert Improving the measure
of public support for a proposed initiative measure will increase
the public’s confidence and protect the integrity of the initiative
process. A end insert volunteer begin insert and grassroots end insert effort to qualify an initiative
measure for the ballot demonstrates a significant level of public
support. begin delete 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 delete begin insert By limiting the influence of money
in the signature gathering phase, the public will have greater
confidence in the actual merits of a proposed initiative measure. end insert

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 begin delete original end delete 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 begin delete grassroots end delete
begin insert public end insert support from informed voters to be placed on the ballot.

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

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 101 of the end insert begin insert Elections Code end insert begin insert is repealed. end insert

begin delete

101.  

Notwithstanding any other provision of law, any state or
local initiative petition required to be signed by voters shall contain
in 12-point type, prior to that portion of the petition for voters’
signatures, printed names, and residence addresses, the following
language:

“NOTICE TO THE PUBLIC

THIS PETITION MAY BE CIRCULATED BY A PAID
SIGNATURE GATHERER OR A VOLUNTEER. YOU HAVE
THE RIGHT TO ASK.”

end delete

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

Section 9008 of the Elections Code is amended to read:

9008.  

Each proposed initiative measure, prior to circulation,
shall have placed across the top of the petition all of the following:

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

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

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

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

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

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

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

9009.5.  

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

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

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

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

9009.6.  

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

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

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

The following donors have contributed $50,000 or more to the
(insert full name of committee as registered with the Secretary of
State pursuant to Section 84101 of the Government Code) within
six months of the printing of this petition: (insert name of each of
the top three donors who have contributed fifty thousand dollars
($50,000) or more and, if an individual, his or her occupation and
the identity of his or her employer).” begin insert If there are no such donors,
insert “none.” end insert

(c) If the information for the disclosure statement described in
subdivision (b) changes, the disclosure statement on the petition
shall be updated within 14 days begin insert of the date of receipt of a
contribution that caused the information in the disclosure statement
to change end insert .

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

begin delete SEC. 5. end delete
begin insert SEC. 6. 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. 6. end delete
begin insert SEC. 7. 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. begin delete If the person soliciting the signatures is
not a resident of this state, the declaration shall also state that the
person consents to both of the following: end delete

begin delete

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

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

end delete

(b) In addition to the information required by Section 104, the
declaration of a person who solicits signatures for a proposed
initiative measure and does not receive money or other valuable
consideration for the specific purpose of soliciting signatures of
electors begin insert pursuant to Section 9036 end insert shall declare all of the following:

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

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

begin delete

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

end delete

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

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

begin delete SEC. 7. end delete
begin insert SEC. 8. 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 10 days after the filing of the petition, excluding
Saturdays, Sundays, and holidays, the elections official shall
determine the total number of signatures affixed to the petition
and, in the case of an initiative petition, the total number of
signatures submitted for purposes of subdivision (a) of Section
9036. The elections official shall transmit this information to the
Secretary of State. If the total number of signatures filed with all
elections officials is less than 100 percent of the number of
qualified voters required to find the petition sufficient or, in the
case of an initiative petition, the number of signatures submitted
for purposes of subdivision (a) of Section 9036 is less than the
total number needed to satisfy the requirement of that subdivision,
the Secretary of State shall so notify the proponents and the
elections officials, and no further action shall be taken with regard
to the petition.

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

(d)  begin insert (1) end insert begin insert   end insert Within 35 days after this notification, excluding
Saturdays, Sundays, and holidays, the elections official shall
determine the number of qualified voters who have signed the
petition and the number of qualified voters who have signed a
section of the petition that satisfies the requirement of subdivision
(a) of Section 9036. begin delete If end delete

begin insert (2) end insert begin insert   end insert begin insert (A) end insert begin insert   end insert begin insert If end insert 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 begin insert from all petition
sections end insert in such a manner that every signature filed with the
elections official shall be given an equal opportunity to be included
in the sample. begin delete The end delete

begin insert (B) end insert begin insert   end insert begin insert For initiative petitions, a second random sample of
signatures shall be drawn from all petition sections submitted to
satisfy subdivision (a) of Section 9036 and verified according to
the procedures set forth by the Secretary of State. The verification
of signatures that are submitted for purposes of subdivision (a) of
Section 9036 shall be consistent with subdivision (g) of that section. end insert
begin delete random end delete

begin insert (C) end insert begin insert   end insert begin insert In each case, the random end insert sampling shall include an
examination of at least 500 or 3 percent of the begin delete signatures, end delete
begin insert signatures on the respective petitions or sections of petitions, end insert
whichever is greater. begin delete In end delete

begin insert (3) end insert begin insert   end insert begin insert In end insert determining from the records of registration the number
of qualified voters who have signed the petition, the elections
official may use the duplicate file of affidavits of registered voters
or the facsimiles of voters’ signatures, provided that the method
of preparing and displaying the facsimiles complies with law.

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

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

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

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

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

Section 9031 of the Elections Code is amended to read:

9031.  

(a) (1) If the statistical sampling shows that the number
of valid signatures begin insert on all petition sections, including those
submitted to satisfy end insert begin insert subdivision (a) of Section 9036, end insert is within 95
to 110 percent of the number of signatures of qualified voters
needed to declare the petition sufficient, the Secretary of State
shall order the examination and verification of each signature filed,
and shall so notify the elections officials.

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

(b)  begin insert (1) end insert begin insert   end insert Within 35 days, excluding Saturdays, Sundays, and
holidays, after receipt of the order, the elections official or registrar
of voters shall determine from the records of registration the
number of qualified voters who have signed begin delete the end delete begin insert a section of the end insert
petition begin delete 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, end delete begin insert that is subject to
examination under subdivision (a) end insert and begin insert , end insert if necessary begin insert , end insert 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.

begin insert

(2) The examination of signatures that are submitted to satisfy
subdivision (a) of Section 9036 shall be made pursuant to
subdivision (g) of that section.

end insert

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

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

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

(e) The Secretary of State shall adopt regulations consistent
with this begin delete 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 delete begin insert section. end insert

begin delete SEC. 9. end delete
begin insert SEC. 10. end insert   

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

9036.  

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

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

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

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

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

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

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

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

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

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

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

(e) This section shall not be construed to preclude a person who
receives nominal benefits other than money, begin delete including end delete begin insert such as end insert
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.

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

begin insert

(g) For purposes of verifying signatures under Sections 9030
and 9031 and the procedures set forth by the Secretary of State,
if the signature of a qualified voter appears once on a petition or
section of a petition submitted to satisfy subdivision (a) of this
section, and the same voter’s signature appears on a petition or
section of a petition that does not satisfy subdivision (a), the
qualified voter’s signature shall only be counted once and shall
be counted towards satisfying subdivision (a).

end insert

begin delete

SEC. 10.  

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

9037.  

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

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

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

(d) A professional petition firm shall provide training to each
person hired or retained, directly or indirectly, to circulate an
initiative or referendum petition, 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 (m).

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

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

(2) The residential street address of the person.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(g) 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 person who is hired or retained, directly
or indirectly, to circulate an initiative or referendum petition and
is assigned pursuant to subdivision (h) 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 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.

(h) 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 or retained, directly or indirectly, 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).

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

(j) (1) If a person receives money or other valuable
consideration, directly or indirectly, 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, 9035, and 9036.

(2) The Secretary of State shall provide to each county elections
official a list of the names and unique identifying numbers for
persons hired or retained, directly or indirectly, as provided
pursuant to this section. 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.

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

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

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

(1) Establish procedures for registering professional petition
firms.

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

SEC. 11.  

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

9038.  

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

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

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

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

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

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

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

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

(2) (A) 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.

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

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

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

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

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

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

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

end delete

begin delete SEC. 12. end delete
begin insert SEC. 11. end insert   

Section begin delete 9039 end delete begin insert 9037 end insert is added to the Elections Code, to
read:

begin delete 9039. end delete
begin insert 9037. end insert   

(a)  begin delete An end delete begin insert The signatures on an end insert initiative begin delete or referendum end delete
petition section shall be deemed invalid and shall not be used by
an elections official for the purpose of determining whether the
initiative begin delete or referendum end delete measure qualifies for the ballot if the
begin delete requirements of Section 9036, 9037, or 9038 are not satisfied or
if end delete signatures begin delete are end delete begin insert thereon were end insert solicited begin delete and submitted end delete by a person
who, in connection with the circulation of the initiative begin delete or
referendum end delete petition, intentionally engages in fraud,
misrepresentation, or any conduct described in Section 18600,
18601, or 18602 begin insert , or by a person who falsely claims to have not
received money or other valuable consideration for the specific
purpose of soliciting signatures of electors pursuant to Section
9036 end insert .

(b)  begin delete The relief provided for in subdivision (a) may be obtained
through a end delete begin insert This section may be enforced by a end insert civil action brought
by the Secretary of State or any elector begin insert . The signatures on a
petition section shall be invalidated only end insert upon a showing begin insert , end insert by clear
and convincing evidence begin insert , end insert that the begin delete requirements for invalidation
described in subdivision (a) have been satisfied. end delete begin insert person who
solicited or obtained the signatures did so through intentional
fraud, misrepresentation, or other conduct described in Sections
18600, 18601, and 18602, or that the person falsely claims to have
not received money or other valuable consideration for the specific
purpose of soliciting signatures of electors pursuant to Section
9036. end insert Any civil action brought pursuant to this section shall have
priority over all other matters.

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

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

begin delete SEC. 13. end delete
begin insert SEC. 12. 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. 14. end delete
begin insert SEC. 13. 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.