HB2404 - 531R - House Bill Summary

Abstract

Relating to paid circulators of statewide initiative and referendum measures.

Provisions

1. Requires a person or organization who intends to use paid circulators for statewide initiative or referendum petitions to file the following information with the SOS before obtaining signatures:

a. A signed and notarized affidavit declaring that:

i. One or more persons will be paid money or other compensation to collect petition signatures and that those persons will comply with all applicable state laws; and

ii. The person or organization proposing the initiative or referendum is liable for any violations committed by the paid circulators and may be subject to a civil penalty for any violations.

b. Evidence of a surety bond executed by the person or organization proposing the measure as principal, subject to claims for civil or criminal violations. (Sec. 2)

2. Prohibits a person from paying or receiving money or any other thing of value based upon the number of signatures collected:

a. ~~Permits a person to receive~~ ~~compensation for signature collection that is not directly or indirectly based upon the number of signatures obtained.~~

b. Classifies a violation as a Class 1 misdemeanor (6 months/$2,500 plus surcharges). (Sec. 6) (GOV)

3. Requires the surety bond filed by a person or organization proposing an initiative or referendum to be continuous in form, remain in effect while obtaining signatures with paid circulators and be in the following amounts. (Sec. 4)

Bond Amount	Number of Estimated Signatures
$10,000	Less than 25,000
$25,000	Between 25,001 and 75,000
$35,000	Between 15,001 and 125,000
$50,000	More than 150,001

4. ~~Requires paid circulators, when registering with the SOS, to pay a registration fee in an amount determined by the SOS and requires the fee to be deposited into the Fund~~. (Sec. 5) (GOV)

5. Requires the SOS to include a circulator registration application in the instruction and procedures manual. (Sec. 5)

6. Prohibits a person from registering as a paid circulator if the person has:

a. Been convicted of a ~~criminal offense~~ FELONY involving fraud, forgery or identity theft in any state within the last five years;

b. Had a civil or criminal penalty imposed for a violation of Arizona law relating to elections or initiative and referendums within the last five years; or

c. Been convicted of a felony and has not had their civil rights restored. (Sec. 5) (GOV)

7. Requires the circulator registration application to include:

a. The paid circulators full name;

b. A copy of a valid driver license, state issued ID card, U.S. Passport, military ID card or U.S. citizenship certified with a photo;

c. If the paid circulator has been convicted of a ~~criminal offense~~ FELONY involving fraud, forgery or identity theft and the year and state in which the conviction occurred;

d. A list of the initiative and referendum petitions on which the circulator will gather signatures;

e. A statement that the circulator consents to the jurisdiction of Arizona courts for resolving disputes;

f. The address of each committee for which the paid circulator is gathering signatures and will accept service of process for disputes;

g. ~~Proof that the paid circulator completed the online circulator training class;~~

h. A copy of a local and national criminal background check that was completed within 12 months before registration; and

i. A signature of the paid circulator and the chairman or treasurer of each committee for which the circulator will gather signatures with a declaration stating that:

i. The circulator has read and understands applicable Arizona law; and

ii. The committee acknowledges that it is liable for violations of law or rules committed by the circulator while collecting signatures. (Sec. 5) (GOV)

8. ~~Requires the SOS to make information regarding online circulator training classes available to each person or organization circulating a statewide initiative, referendum or recall petition, and~~:

a. Requires the person or organization using paid OR UNPAID circulators to provide each paid circulator with the SOS training materials ~~and information on the online circulator training class; and~~

b. ~~Requires each paid circulator to acknowledge completion of the online training class in writing.~~ (Sec. 2) (GOV)

9. Stipulates that any civil or criminal violation committed by a paid circulator is deemed a violation by the person or organization proposing the measure.

a. States that the person or organization is liable for a civil penalty of up to $10,000 for each violation by the paid circulator. (Sec. 2)

10. Permits a person or organization that submits an application or a PAC that intends to support or oppose a measure to submit a copy of the proposed law, referral or amendment to the Director of Legislative Council at any time after filing an application. (Sec. 3)

11. States that any change in the law or procedure adopted by a governing body with respect to the employment, use or registration of paid circulators applies to any statewide initiative or referendum petition. (Sec. 4)

12. Classifies the following as a Class 1 misdemeanor (6 months/$2,500 plus surcharges):

a. Knowingly omitting, misrepresenting or providing false information on a circulator registration form; or

b. Registering as a circulator despite a previous conviction or assessed penalty prohibiting the person from registering (Sec. 5)

13. Requires the SOS to register and assign the paid circulator a registration number within five days of submission of the registration form. (Sec. 5)

14. Permits service of process related to disputes concerning circulation of a paid circulator's petitions to be effected by mailing a copy of the subpoena to the committee by certified mail to the address provided in the paid circulator's registration application. (Sec. 5)

15. Permits a person registered as a paid circulator to amend their registration to add or remove any initiative or referendum petitions. (Sec. 5)

16. Stipulates that if a paid circulator is adding a petition to their registration form, the amended form must include the signature of the circulator and the treasurer or chairman of the committee for which the circulator is gathering signatures. (Sec. 5)

17. Permits a person to challenge the lawful registration of circulators in the superior court of the county in which the circulator is registered within 10 days, rather than 5 days, after the final date on which the petitions for the circulator must be registered. (Sec. 5)

18. ~~Establishes the Fund within the SOS and directs the SOS to use Fund monies to carry out duties relating to the initiative and referendum process.~~ (Sec. 5) (GOV)

19. ~~Requires all monies collected from paid circulator's applications to be deposited into the Fund~~. (Sec. 5) (GOV)

20. Requires signature sheets for initiatives and referendums to have the registration number assigned to the paid circulator on the lower right-hand corner of the sheet. (Sec. 7)

21. Requires a committee that is a proponent of an initiative measure to file all signatures collected by registered paid circulators each month with the SOS on the 15^th of each month, and:

a. States that the petitions must be filed on the business day following any filing day that falls on a Saturday, Sunday or legal holiday; and

b. Requires the SOS to:

i. Hold all filed petitions and issue a receipt based on an estimate of the purported number of sheets and signatures filed; and

ii. Make electronic copies of all filed signatures available within 5 days of filing. (Sec. 7)

22. Requires the SOS to remove sheets filed for:

a. Statewide measures that are circulated using paid circulators dated earlier than the affidavit; and

b. Statewide initiatives that are not properly submitted on the 15^th day of each month. (Sec. 8)

23. Permits any person to contest the validity of an initiative or referendum. (Sec. 9)

24. Requires multiple actions contesting the validity to be consolidated before the Maricopa County Superior Court. (Sec. 9)

25. Permits any person to seek to enjoin the SOS or other officer from certifying or printing the official ballot that will include a contested initiative or referendum measure. (Sec. 9)

26. Modifies the definition of paid circulator to:

a. Include a person who receives compensation to obtain signatures on a statewide initiative or referendum, rather than a person who is compensated based on the number of signatures obtained or petitions circulated; and

b. Exclude a paid employee of any committee, rather than any political committee. (Sec. 5)

27. Contains a legislative findings and intent clause. (Sec. 1)

28. Contains a severability clause. (Sec. 10)

29. Makes technical and conforming changes. (Sec. 2, 3, 4, 5, 7, 8, 9)

Current Law

Any person or organization intending to propose a law or constitution amendment by initiative or file a referendum petition is required to file an application and statement of organization with the SOS (A.R.S. § 19-111). All paid circulators who receive monetary or other compensation based on the number of signatures obtained on a petition or the number of petitions circulated for a statewide ballot measure are required to register as circulators with the SOS before circulating any petitions. The SOS is required to disqualify all signatures collected by a circulator who fails to register (A.R.S. § 19-118).

Every qualified elector that signs a petition must do so in the presence of the person who is circulating the petition. The person before whom the signatures are signed must submit an affidavit swearing before a notary public that each of the names on the sheet were signed by the elector (A.R.S. § 19-112). All petitions are required to be filed with the SOS, which must remove any sheets or signatures that do not comply with statutory requirements (A.R.S. §§ 19-121 & 19-121.01).

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Fifty-third Legislature HB2404

First Regular Session Version 2: Caucus and COW

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ARIZONA HOUSE OF REPRESENTATIVES