California Code, Elections Code - ELEC § 9604

(a)(1) Notwithstanding any other law, any person may engage in good faith bargaining between competing interests to secure legislative approval of matters embraced in a statewide or local initiative or referendum measure, and the proponents may, as a result of these negotiations, withdraw the measure at any time before filing the petition with the appropriate elections official.

(2) Withdrawal of a statewide initiative or referendum measure pursuant to paragraph (1) shall be effective upon receipt by the Secretary of State of a written notice of withdrawal, signed by all proponents of the measure.

(3) Withdrawal of a local initiative or referendum measure pursuant to paragraph (1) shall be effective upon receipt by the appropriate local elections official of a written notice of withdrawal, signed by all proponents of the measure.

(b)(1) In addition to the procedure under subdivision (a), the proponents of a statewide initiative or referendum measure may withdraw the measure after filing the petition with the appropriate elections official at any time before the Secretary of State certifies that the measure has qualified for the ballot pursuant to Section 9033.

(2) Except as provided in subdivision (c), withdrawal of a statewide initiative or referendum measure after filing the petition with the appropriate elections official shall be effective upon receipt by the Secretary of State of a written notice of withdrawal, signed by a majority of the proponents of the measure.

(c)(1) After filing the petition with the appropriate elections official at any time before the Secretary of State certifies that a statewide initiative or referendum measure has qualified for the ballot pursuant to Section 9033, the proponents may file with the Secretary of State a written notice of withdrawal that is contingent on the enactment of a particular legislative measure. In the written notice, the proponents shall identify the publication date of the most recent version of the legislative measure. The Secretary of State shall reject any notice of contingent withdrawal that is contingent on any action other than the enactment of a particular legislative measure.

(2) The Secretary of State shall deem a written notice of contingent withdrawal of a statewide initiative or referendum measure to be effective if the legislative measure identified in the notice is enacted and given a chapter number by the Secretary of State before the Secretary of State certifies that the statewide initiative or referendum measure has qualified for the ballot pursuant to Section 9033.

(4) The proponents may file a written notice with the Secretary of State to cancel the contingent withdrawal at any time before the legislative measure is enacted and given a chapter number by the Secretary of State.

(5) A contingent withdrawal, or a cancellation of a contingent withdrawal, filed with the Secretary of State pursuant to this subdivision shall be signed by at least a majority of the proponents of the initiative or referendum measure.

(6) Notwithstanding any provision of this subdivision, the proponents of a statewide initiative or referendum measure may file a written notice pursuant to subdivision (b) to withdraw the measure at any time before the Secretary of State certifies that the measure has qualified for the ballot. A notice of withdrawal filed pursuant to subdivision (b) shall take precedence over any notice of contingent withdrawal on file with the Secretary of State pursuant to this subdivision.