SAN FRANCISCO (Reuters) - California set tough new standards for electronic voting on Friday, barring a third of existing machines from November's ballot and ordering new security measures before thousands of others already purchased can be used.


California Secretary of State Kevin Shelley also called for a criminal  investigation into the state's largest e-voting machine supplier, Diebold, a firm he called "reprehensible."

Democrat Shelley said that he would decertify Ohio-based Diebold Inc.'s AcuVote-TSx Voting System, which accounts for a third of all of California's 
electronic voting machines following glitches in the March ballot.

"I'm asking the attorney general to pursue criminal and civil actions against Diebold in this matter, based on finding of fraudulent action," he said.

"They broke the law," Shelley continued. "Their conduct was absolutely reprehensible."

"We will not tolerate deceitful tactics engaged in by Diebold and we must send a clear and compelling message to the rest of the industry: Don't try to pull 
a fast one on the voters of California because there will be consequences."

Shelley said Diebold deceived California by saying they were about to receive federal certification which turned out to not be forthcoming.

Diebold, which makes automated teller machines and other products in addition to e voting machines, did not return telephone calls for comment.

Shelley said he nearly acted to bar all electronic voting machines, but then said it would give all but four counties including San Diego the chance to use 
them if they can provide a paper receipt and fulfill other conditions.

"While we are disappointed the secretary of state did not go all the way on this recommendation, he did make a historic step," said Kim Alexander, head of 
the California Voter Foundation, a group that wants e-voting paper receipts.

CALIFORNIA COULD BE E-VOTING MODEL

Shelley's decision, in the state home to Silicon Valley, could cause other sections of the country to rethink their introduction to electronic voting 
systems. The technology is also spreading to other countries, including the world's largest democracy India.

"There will be ramifications in other states, because it shows that Diebold hasn't been conducting business the way you'd believe a company that makes voting 
machines should," said Johns Hopkins University computer science professor Avi Rubin, who uncovered flaws in Diebold software last summer.

A new U.S. government body, the Election Assistance Commission, has already scheduled a day-long hearing on e-voting.

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