BILL ANALYSIS                                                                                                                                                                                                    �






                           SENATE COMMITTEE ON ELECTIONS 
                            AND CONSTITUTIONAL AMENDMENTS
                           Senator Norma J. Torres, Chair


          BILL NO:   AB 400               HEARING DATE: 6/4/13
          AUTHOR:    FONG                 ANALYSIS BY:  Darren Chesin
          AMENDED:   5/28/13
          FISCAL:    YES
          
                                        SUBJECT
           
          Initiative, referendum and recall petitions: contributors

                                      DESCRIPTION  
          
           Existing law  requires political committees, as defined, to  
          periodically report contributions received and expenditures made  
          to support or oppose the qualification or passage of an  
          initiative, referendum, or recall measure.

           Existing law  requires an advertisement for or against any ballot  
          measure to include a disclosure statement identifying any person  
          whose cumulative contributions are $50,000 or more, as  
          specified.

           Existing law  requires a committee that supports or opposes one  
          or more ballot measures to name itself using a name or phrase  
          that identifies the economic or other special interest of its  
          major donors of $50,000 or more.  Provides that if the major  
          donors of $50,000 or more share a common employer, the identity  
          of the employer must also be disclosed.

           Existing law  requires that any state or local initiative  
          petition contain a statement notifying voters of their right to  
          inquire whether the petition is being circulated by a paid  
          signature gatherer or a volunteer.

           This bill  requires an initiative, referendum, or recall  petition   
          that is circulated by a paid circulator to include a statement  
          identifying the five largest contributors of $10,000 or more 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 of $10,000 or more, 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 a  state  initiative, referendum, or recall  
            petition to submit the disclosure statement required by this  
            bill, and any 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.

                                      BACKGROUND  
          
           Existing Disclosure Requirements  :  As noted above, existing law  
          AB 400 (FONG)                                                     
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          requires campaign committees to file periodic reports disclosing  
          contributions received and expenditures made to support or  
          oppose the qualification or passage of an initiative,  
          referendum, or recall measure.  In most cases, those campaign  
          disclosure reports will be available online if the measure is a  
          state measure.  To the extent that having more information about  
          the financial supporters of a measure is an important  
          consideration for a voter when deciding whether to sign a  
          petition to place that measure on the ballot, the voter  
          typically will be able to get that information from campaign  
          reports.

          On the other hand, existing law also recognizes an interest in  
          providing voters with information about the contributors to a  
          measure at the time voters are asked to support or oppose that  
          measure.  Specifically, existing law requires advertisements for  
          or against ballot measures to include a disclosure statement  
          identifying the two largest donors of $50,000 or more to the  
          committee paying for the advertisement.  Additionally, existing  
          law requires a committee that is supporting or opposing one or  
          more ballot measures to name and identify itself using a name  
          that identifies the economic or other special interest of its  
          major donors of $50,000 or more.  
           
           Speaker's Commission on the California Initiative Process  :  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  
          financial disclosure, which may be printed on, attached, or  
          bound to the petition.

                                       COMMENTS  
          
           1.According to the author  :  While committees supporting or  
            opposing ballot measures are required to file periodic  
            campaign finance reports, potential signers of the  
            petitions do not have easy access to this information  
            when approached by a petition circulator.  Petitions  
            contain official titles, summaries, and (in some cases)  
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            the text of the proposed measures, but there is no  
            readily available information regarding the source or  
            sponsors of the measures at the time a voter is asked to  
            sign a petition.  While the voter can ask the circulator  
            for this information, the circulator is not required to  
            know or disclose this information.  Circulators often  
            only know who is paying them and little else about the  
            petitions they are helping to qualify.

          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 (PPIC)  
            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.  In their most recent survey in March of this  
            year, the PPIC found that 81 percent of Democrats, 80  
            percent of Republicans, and 85 percent of Independents  
            supported increased disclosure of the funding sources for  
            initiative campaigns.

          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.

          Unfortunately, it is far too common for paid petition  
            circulators to mislead voters about the effects of  
            proposed ballot measures in order to get those voters to  
            sign the petitions.  By requiring petitions to include  
            information about the largest financial donors to  
            proposed ballot measures, AB 400 will provide important  
            clues about the potential impacts of those measures, and  
            will help those voters see through misleading statements  
            made by petition circulators.

           2.Previous Legislation  :  SB 469 (Bowen) of 2005, would have  
            required an initiative, referendum, or recall petition to  
            include a statement identifying the five largest contributors  
            in support of the measure, among other provisions.  SB 469 was  
            vetoed by Governor Schwarzenegger.

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          AB 1500 (Hertzberg) of 2002, would have required any person who  
            circulates an initiative petition for signatures to make  
            available to potential signers the names of the top 5  
            contributors to the committee and the cumulative amount  
            contributed by each as disclosed on the committee's most  
            recent campaign report, among other provisions.  AB 1500 died  
            on the Senate inactive file.

                                     PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:  5-2
          Assembly Appropriations Committee: 12-5
          Assembly Floor:                         53-24
                                           
                                      POSITIONS  

          Sponsor: Author

           Support:    American Association of University Women
           California Common Cause
                   California Conference Board of Amalgamated Transit  
                   Union
                   California Teamsters Public Affairs Council
                   Engineers and Scientists of California, IFPTE Local 20,  
                   AFL-CIO
                   International Longshore and Warehouse Union
                   Pacific Media Workers Guild
                   Professional and Technical Engineers, IFPTE Local 21,  
                   AFL-CIO
                   UNITE-HERE, AFL-CIO
                   United Food and Commercial Workers Western States  
                   Council
                   Utility Workers Union of America, Local 132, AFL-CIO

           Oppose:  None received


                                              





          AB 400 (FONG)                                                     
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