Bill Text: CA AB857 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Initiatives: petition circulators.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2014-03-06 - Last day to consider Governor's veto pursuant to Joint Rule 58.5. [AB857 Detail]

Download: California-2013-AB857-Amended.html

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BILL NUMBER: AB 857	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2013
	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 21, 2013

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 857, as amended, Fong. Initiatives: petition circulators.
   (1) The California Constitution and existing statutory law provide
for the electors to propose statutes or amendments to the
Constitution by initiative. Existing law authorizes a person who is a
voter or who is qualified to register to vote in California to
circulate an initiative or referendum petition anywhere within the
state , and requires the person soliciting signatures to
declare   . 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. 
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. 
   (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  on
a petition for   that are required to qualify  an
initiative measure to be  submitted on a petition or petition
section that was circulated   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  those persons to sign an affidavit under penalty of
perjury   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.
   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  paid circulators   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.
   This bill would further require a professional petition firm that
pays any person to solicit signatures of electors on an initiative or
referendum petition to keep detailed accounts, as defined, and would
authorize the Secretary of State to review those accounts.
   The bill would include specified findings and declarations of the
Legislature in support of these policies. 
   (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 order an examination and verification of each signature
filed that would satisfy the 20% requirement.  
   (3) 
    (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 
    This bill w   ould 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  bright yellow  paper  of a color
other than white  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) 
    (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 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) 
    (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
 an elections official from using   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. 
   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) 
    (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. Whereas the initiative was reserved by the voters
for the purpose of allowing voters to participate in direct
democracy, now the integrity of the initiative process has been
corrupted by well-financed special interests.
   (5) Due to the growth of paid signature gathering, the presence of
an initiative measure on the ballot is no longer necessarily viewed
as an expression of a minimum amount of public support but, rather,
often is the result of a special interest willing to pay a sufficient
number of petition circulators to qualify the initiative measure for
the ballot.
   (6) Whereas initiative petitions were originally circulated by
volunteer and grassroots organizations, well-funded individuals and
organizations that promote narrow interests may rely exclusively on
paid circulators to qualify an initiative measure that does not have
broad community support. In many cases, the individuals and
organizations supporting an initiative petition do not reside in the
state and will not be subject to the laws that they propose.
   (7) Professional petition firms hire paid circulators to gather as
many signatures as possible in the least amount of time. Often the
signatures are obtained without providing electors an explanation of
the true purpose and effect of the proposed initiative measure. Paid
circulators are also instructed to solicit signatures from electors
 who do   even if an elector does  not
understand the contents of the petition. Due to the prevalence of
professional petition firms and paid circulators, special interests
may qualify an initiative measure for the ballot without the
necessary minimum showing of public support. As a result, the
statewide election ballot is increasingly cluttered with initiative
measures that do not have enough public support to justify the
expenses of administering the election for those particular
proposals.
   (8) As has been the case since the initiative power was created,
initiative measures that have broad public support continue to
qualify for the ballot through the efforts of volunteers and
organizations, but the sheer number and complexity of proposals
without broad public support have overwhelmed voters, undermining the
integrity of both the signature gathering and electoral processes.
   (9) The prevalence of paid circulators has also led to instances
of fraud and misrepresentation, and the erosion of public confidence
in the initiative process. The most popular means of paying petition
circulators is based on the number of signatures a person collects.
Under a payment-per-signature arrangement, a paid circulator does not
need an incentive to educate voters about an initiative petition
but, instead, may be motivated solely by financial reasons to gather
as many signatures as possible. In their quest for economic gain,
paid circulators often purposefully mislead voters and leave the
public in the dark about the true content of initiative petitions.
   (10) Because the use of paid circulators is no longer a sufficient
means of measuring the necessary public support for an initiative
measure to appear on the ballot and has been associated with coercive
and misleading tactics to collect signatures, the public is
dissatisfied with the initiative process and the means by which a
petition is circulated to qualify a measure for the ballot.
   (11) Unlike paid circulators, a widespread volunteer effort to
qualify an initiative measure for the ballot demonstrates a
significant level of public support. Improving the measure of public
support for a proposed initiative measure will increase the public's
confidence in the integrity of the initiative process.
   (12) The Legislature is responsible for providing the manner in
which initiative petitions are circulated, presented, and certified.
Consistent with this constitutional duty, the Legislature must
provide for laws that are consistent with the original intent of the
voters in reserving the power of the initiative; protect the
integrity of the initiative process; and prevent the occurrence of
fraud and misrepresentation in the circulation, presentation, and
certification of initiative petitions.
   (b) Therefore, it is the intent of the Legislature to do all of
the following:
   (1) Preserve and protect the integrity of California's initiative
process.
   (2) Ensure that initiative petitions have sufficient grassroots
support from informed voters to be placed on the ballot.
   (3) Protect access to the initiative process and preserve the
constitutional right of voters in California to engage in direct
democracy.
   SEC. 2.    Section 9008 of the   Elections
Code   is amended to read: 
   9008.   Every   Each  proposed
initiative measure, prior to circulation, shall have placed across
the top of the petition  in 12-point or larger roman boldface
type,  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. 
   (c) 
    (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.  
   (d) 
    (c)  The circulating title and summary prepared by the
Attorney General  ,  as required by  subdivision (c)
  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."
   SEC. 2.   SEC. 3.   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  bright yellow  paper  of a
color other than white  in a contrasting color ink.
   SEC. 3.   SEC. 4.   Section 9009.6 is
added to the Elections Code, to read:
   9009.6.  (a) Notwithstanding any other provision of law, a
petition for a proposed initiative measure that is circulated by a
person who receives money or other valuable consideration for the
specific purpose of soliciting signatures of electors shall include
the following statement immediately prior to the portion of the
petition for voters' signatures, printed names, and residence
addresses, printed in 18-point boldface type:
"NOTICE TO THE PUBLIC: THIS PETITION IS BEING CIRCULATED BY A PERSON
PAID TO OBTAIN YOUR SIGNATURE. YOU ARE ENCOURAGED TO READ THE
CONTENTS OF THIS PETITION BEFORE SIGNING."

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

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

   (c) If the information for the disclosure statement described in
subdivision (b) changes, the disclosure statement on the petition
shall be updated within 14 days. 
   (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.  
  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.  If the person soliciting the signatures
is not a resident of this state, the declaration shall also sta
  te that the person consents to both of the following:
 
   (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. 
   (b)  A   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 shall  sign an
affidavit that is prepared by the Secretary of State and that
declares   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.
   (3) The person's unique identifying number assigned pursuant to
subdivision  (g)   (h)  of Section 9037.

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

   (5) If the person is not a resident of the state, he or she
consents to both of the following:  
   (A) The jurisdiction of the state for purposes of an investigation
or prosecution by any state or local agency regarding the validity
of the signatures submitted by him or her.  
   (B) Service of process for any legal action pertaining to an
investigation or prosecution by any state or local agency regarding
the validity of the signatures submitted by him or her. 
   (c) The circulator shall certify to the content of the declaration
as to its truth and correctness, under penalty of perjury under the
laws of the State of California, with his or her signature. The
circulator shall state the date and the place of execution on the
declaration immediately preceding his or her signature.
   (d) Petitions so verified shall be prima facie evidence that the
signatures thereon are genuine and that the persons signing are
qualified voters.
  SEC. 7.  Section 9030 of the Elections Code is amended to read:
   9030.  (a) Each section of the petition shall be filed with the
elections official of the county or city and county in which it was
circulated, but all sections circulated in any county or city and
county shall be filed at the same time. Once filed, no petition
section shall be amended except by order of a court of competent
jurisdiction.
   (b) Within 10 days after the filing of the petition, excluding
Saturdays, Sundays, and holidays, the elections official shall
determine the total number of signatures affixed to the petition and,
in the case of an initiative petition, the total number of
signatures submitted for purposes of subdivision (a) of Section 9036.
The elections official shall transmit this information to the
Secretary of State. If the total number of signatures filed with all
elections officials is less than 100 percent of the number of
qualified voters required to find the petition sufficient or, in the
case of an initiative petition, the number of signatures submitted
for purposes of subdivision (a) of Section 9036 is less than the
total number needed to satisfy the requirement of that subdivision,
the Secretary of State shall so notify the proponents and the
elections officials, and no further action shall be taken with regard
to the petition.
   (c) If the number of signatures filed with all elections officials
is 100 percent or more of the number of qualified voters needed to
declare the petition sufficient and, in the case of an initiative
petition, the percentage of signatures submitted for purposes of
subdivision (a) of Section 9036 is equal to or greater than the total
number needed to satisfy the requirement of that subdivision, the
Secretary of State shall immediately so notify the elections
officials.
   (d) Within 35 days after this notification, excluding Saturdays,
Sundays, and holidays, the elections official shall determine the
number of qualified voters who have signed the petition and the
number of qualified voters who have signed a section of the petition
that satisfies the requirement of subdivision (a) of Section 9036. If
more than 500 names have been signed on sections of the petition
filed with an elections official, the elections official shall use a
random sampling technique for verification of signatures, as
determined by the Secretary of State. The random sample of signatures
to be verified shall be drawn in such a manner that every signature
filed with the elections official shall be given an equal opportunity
to be included in the sample. The random sampling shall include an
examination of at least 500 or 3 percent of the signatures, whichever
is greater. In determining from the records of registration the
number of qualified voters who have signed the petition, the
elections official may use the duplicate file of affidavits of
registered voters or the facsimiles of voters' signatures, provided
that the method of preparing and displaying the facsimiles complies
with law.
   (e) The elections official, upon the completion of the
examination, shall immediately attach to the petition, except the
signatures thereto appended, a properly dated certificate showing the
result of the examination and shall immediately transmit the
petition and the certificate to the Secretary of State. A copy of
this certificate shall be filed in the elections official's office.
   (f) If the certificates received from all elections officials by
the Secretary of State establish that the number of valid signatures
does not equal 95 percent of the number of qualified voters needed to
find the petition sufficient or, in the case of an initiative
petition, that the number of valid signatures submitted for purposes
of subdivision (a) of Section 9036 does not equal 95 percent of the
number of qualified voters needed to satisfy the requirement of that
subdivision, the petition shall be deemed to have failed to qualify,
and the Secretary of State shall immediately so notify the proponents
and the elections officials.
   (g) If the certificates received from all elections officials by
the Secretary of State total more than 110 percent of the number of
qualified voters needed to find the petition sufficient and, in the
case of an initiative petition, the number of valid signatures
submitted for purposes of subdivision (a) of Section 9036 total more
than 110 percent of the number of qualified voters needed to satisfy
the requirement of that subdivision, the petition shall be deemed to
qualify as of the date of receipt by the Secretary of State of
certificates showing the petition received more than 110 percent of
the qualified voters needed, and the Secretary of State shall
immediately so notify the proponents and the elections officials.
   (h) The Secretary of State shall enact regulations consistent with
this section.
  SEC. 8.  Section 9031 of the Elections Code is amended to read:
   9031.  (a)  (1)    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 that
subdivision  , 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 order an examination and
verification of each signature filed to satisfy the requirement of
subdivision (a) of Section 9036. 
   (b) Within 35 days, excluding Saturdays, Sundays, and holidays,
after receipt of the order, the elections official or registrar of
voters shall determine from the records of registration the number of
qualified voters who have signed the petition and, in the case of an
initiative petition, the number of qualified voters who have signed
sections of the petition submitted for purposes of subdivision (a) of
Section 9036, and if necessary the board of supervisors shall allow
the elections official or registrar additional assistance for the
purpose of examining the petition and provide for their compensation.
In determining from the records of registration the number of
qualified voters who have signed the petition, the elections official
or registrar of voters may use any file or list of registered voters
maintained by his or her office, or the facsimiles of voters'
signatures, provided that the method of preparing and displaying the
facsimiles complies with law.
   (c) The elections official or registrar, upon the completion of
the examination, shall immediately attach to the petition, except the
signatures thereto appended, an amended certificate properly dated,
showing the result of the examination and shall immediately transmit
the petition, together with the amended certificate, to the Secretary
of State. A copy of the amended certificate shall be filed in the
elections official's office.
   (d) (1) If the amended certificates establish the petition's
sufficiency, the petition shall be deemed to be filed as of the date
of receipt by the Secretary of State of certificates showing the
petition to be signed by the requisite number of voters of the state.

   (2) If the amended certificates received from all elections
officials by the Secretary of State establish that the petition has
still been found insufficient, the Secretary of State shall
immediately so notify the proponents and the elections officials.
   (e) The Secretary of State shall adopt regulations consistent with
this section, including, but not limited to, provisions specifying a
procedure that accounts for duplicate signatures that appear on
petitions submitted pursuant to Section 9036.
  SEC. 9.  Section 9036 is added to the Elections Code, to read:
   9036.  (a) At least 20 percent of the signatures 
submitted   to satisfy the requirements of 
 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, 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. 
   (f) Verification of a petition pursuant to Section 9022 shall be
prima facie evidence that the signatures thereon satisfy the
requirement of subdivision (a). 
  SEC. 10.  Section 9037 is added to the Elections Code, to read:
   9037.  (a) For purposes of this section, "professional petition
firm" means  an entity   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)  (1)    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
 paid   person hired or retained, directly or
indirectly, to circulate an initiative or referendum  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)
  (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.  
   (f) 
    (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  paid circulator 
 person who is hired or retained, directly or indirectly, to
circulate an initiative or referendum petition and is  assigned
pursuant to subdivision  (g)   (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  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. 
   (g) 
    (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
indi   rectly,  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). 
   (h) 
    (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  (g)   (h)  .

   (i) 
    (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,  and  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
 paid circulators   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.

   (j) 
    (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. 
   (k) 
    (   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. 
   (l) 
    (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.
  SEC. 12.  Section 9039 is added to the Elections Code, to read:
   9039.  (a) An initiative or referendum petition section shall be
deemed invalid and shall not be used by an elections official for the
purpose of determining whether the initiative or referendum measure
qualifies for the ballot if the  requirements of Section 9036,
9037, or 9038 are not satisfied or if  signatures are solicited
and submitted by a person who, in connection with the circulation of
the initiative or referendum petition, intentionally engages in
fraud, misrepresentation, or any conduct described in Section 18600,
18601, or 18602.
   (b) The relief provided for in subdivision (a) may be obtained
through a civil action brought by the Secretary of State or any
elector upon a showing by clear and convincing evidence that the
requirements for invalidation described in subdivision (a) have been
satisfied. Any civil action brought pursuant to this section shall
have priority over all other matters.
   (c) The relief provided for in subdivision (a) shall not be
available after the Secretary of State has certified that an
initiative or referendum petition has qualified for the ballot.
   (d) If a local elections official is notified of or discovers any
conduct described in subdivision (a), the local elections official
shall promptly notify the Secretary of State.
  SEC. 13.  Section 18602 of the Elections Code is amended to read:
   18602.  A person working for the proponent or proponents of a
statewide initiative or referendum measure who covers or otherwise
obscures the summary of the measure prepared by the Attorney General
or the disclosure statement printed on the petition pursuant to
Section 9009.6 from the view of a prospective signer is guilty of a
misdemeanor. 
  SEC. 14.    The provisions of this act shall take
effect January 1, 2014, and shall apply to any initiative or
referendum petition for which the Attorney General issued a
circulating title and summary on or after October 1, 2013. 
   SEC. 15.   SEC. 14.   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.