BILL ANALYSIS �
AB 914
Page 1
Date of Hearing: May 24, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 914 (Gordon) - As Amended: May 14, 2013
Policy Committee: ElectionsVote:5-2
Judiciary 8-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires specified nonprofit organizations that make
campaign contributions, expenditures, or independent
expenditures in California elections to file reports disclosing
the donors to the nonprofit organization, as specified.
Specifically, this bill:
1)Requires a nonprofit organization that makes combined
contributions, expenditures, and independent expenditures in
California totaling $50,000 or more during the entity's fiscal
year to file a Nonprofit and Multipurpose Organization
Disclosure Statement (NMODS), as specified, with the Fair
Political Practices Commission (FPPC).
2)Requires the FPPC to develop the NMODS form, to include
specified information.
3)Provides that an entity is not required to disclose any
information on a NMODS form if that information has previously
been disclosed on a campaign statement or report filed
pursuant to the Political Reform Act (PRA).
4)Permits an entity that is subject to the reporting
requirements of this bill, or any donor to such an entity, to
petition the FPPC to maintain the confidentiality of donor
information that is disclosed on the statement. The FPPC must
treat such information as confidential if the petitioner
demonstrates by clear and convincing evidence that either:
a) The public disclosure of donor information will cause
undue harm, threats, harassment, or reprisals to the donor.
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b) The donor did not know or have reason to know that his
or her donation would be used to make a contribution,
expenditure, or independent expenditure in California.
5)Requires the FPPC to inform a petitioner, in writing, whether
the petition to maintain confidentiality has been granted or
denied, and requires the determination to include a statement
of findings and conclusions, and the reasons or basis for the
determination.
6)Requires the FPPC, when it grants a petition to maintain the
confidentiality of donor information, to redact the donor and
donation information from any documents that are made
available to the public.
FISCAL EFFECT
Costs to the FPPC would be minor and absorbable.
COMMENTS
1)Purpose . This bill, sponsored by the Fair Political Practices
Commission (FPPC), creates new disclosure rules for nonprofit
organizations that make large campaign contributions or
expenditures in California. Currently these entities are not
required to disclose contributions or expenditures until after
the first year that the organization makes a contribution,
apparently to prevent the organizations' donors from being
surprised about any required disclosure. AB 914 is intended to
provide greater transparency by requiring reporting when the
nonprofit makes aggregate campaign contributions or
expenditures of $50,000 or more in a fiscal year, thus
eliminating the first-year donation reporting exemption. To
help protect certain donors, the bill provides a mechanism for
individual donors or the reporting entity to petition to keep
donor information confidential if public disclosure will
either cause undue harm, threats, harassment, or reprisals to
the donor; or the donor did not know that his or her donation
would be used to make a political contribution or expenditure
in California.
The bill appears to be in response, in part, to an $11 million
campaign contribution made to the Small Business Action
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Committee PAC (SBAC PAC) three weeks prior to the November
2012 statewide general election.
2)Related Legislation . AB 45 (Dickinson), pending in the
Assembly, makes numerous changes to the Political Reform Act
(PRA) regarding reporting of payments by multipurpose
organizations, adjusting minimum thresholds for reporting
campaign contributions, and authorizing the FPPC to seek court
actions to compel disclosures.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081