BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 400
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          ASSEMBLY THIRD READING
          AB 400 (Fong)
          As Amended  April 23, 2013
          Majority vote 

           ELECTIONS           5-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Bocanegra, Bonta,   |Ayes:|Gatto, Bocanegra,         |
          |     |Hall, Perea               |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Hall,      |
          |     |                          |     |Holden, Pan, Quirk,       |
          |     |                          |     |Ammiano                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones, Logue              |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Linder, Wagner  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires an initiative, referendum, or recall petition  
          that is circulated by a paid circulator to include a statement  
          identifying the five largest contributors in support of the  
          measure.  Specifically,  this bill  :  

          1)Requires a state or local initiative, referendum, or recall  
            petition that is circulated by a paid circulator, as defined,  
            who is paid by a committee to include, in 12-point type at the  
            top of the petition, a disclosure statement identifying the  
            names of the persons from whom the committee received the five  
            largest cumulative contributions, as defined.

          2)Provides that if more than five donors meet the disclosure  
            threshold at identical contribution levels, the five highest  
            donations shall be disclosed according to chronological  
            sequence.

          3)Requires the disclosure statement to be updated within seven  
            days of any change in the five largest cumulative  
            contributors.

          4)Requires a committee that employs one or more paid circulators  
            to circulate an initiative, referendum, or recall petition to  
            submit the disclosure statement required by this bill, and any  








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            updates, to the Secretary of State (SOS), and requires the SOS  
            to post those statements on his or her Internet Web site.

          5)Requires the petition to include the name of the committee  
            immediately following the disclosure statement.  Requires the  
            committee to identify itself using a name or phrase that  
            clearly identifies the economic or other special interest of  
            its major donors of $50,000 or more.  Provides that if the  
            major donors to the committee share a common employer, the  
            identity of that employer shall be disclosed.

          6)Provides that local elections officials shall not be required  
            to verify the accuracy of the disclosures required by this  
            bill, or to reapprove the petition when the petition is  
            updated to reflect a change in the five largest cumulative  
            contributors.

          7)Provides that signatures collected on a petition shall not be  
            invalid solely because the information required by this bill  
            was absent or inaccurate.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, costs to the SOS will be minor and absorbable.

           COMMENTS  :  According to the author, "Surveys consistently have  
          shown that voters want improved public disclosure of the sources  
          that are funding signature gathering for proposed ballot  
          measures.  In fact, the Public Policy Institute of California  
          has found greater than 70 percent support for increasing public  
          disclosure of funding sources for initiative campaigns each of  
          the eight times that they asked that question.  AB 400 will  
          improve transparency about the financial backers of proposed  
          ballot measures by requiring initiative, referendum, and recall  
          petitions to include a listing of the five top donors to the  
          committee that is funding the petition drive."  
           
          In 2000, then-Assembly Speaker Robert M. Hertzberg created a  
          commission on the California initiative process.  The goal of  
          the commission was to examine the initiative process and  
          recommend changes to make the process more responsive to voter  
          concerns.  The commission issued its final report in January  
          2002.  Among the recommendations proposed by the commission was  
          a requirement that all petitions to qualify a statewide  
          initiative for the ballot be accompanied by a written campaign  








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          financial disclosure, which may be printed on, attached, or  
          bound to the petition.
           

          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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