BILL ANALYSIS Ó SENATE COMMITTEE ON ELECTIONS AND CONSTITUTIONAL AMENDMENTS Senator Norma J. Torres, Chair BILL NO: SB 844 HEARING DATE: 3/18/14 AUTHOR: PAVLEY ANALYSIS BY: Darren Chesin AMENDED: 3/12/14 FISCAL: YES SUBJECT Ballot measure contributions DESCRIPTION Existing law , pursuant to the Political Reform Act (PRA), provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, as defined, and imposing other reporting and recordkeeping requirements on campaign committees, as defined. Existing law further requires each campaign committee formed or existing primarily to support or oppose a statewide ballot measure to file with the Secretary of State (SOS) periodic reports identifying the sources and amounts of contributions received during specified periods. Existing law specifies what information must be included in the statewide ballot pamphlet, including, but not limited to: A complete copy of each measure. A copy of the arguments and rebuttals for and against each state measure. A copy of the analysis of each state measure by the Legislative Analyst. Tables of contents, indexes, art work, graphics, and other materials that the SOS determines will make the ballot pamphlet easier to understand or more useful for the average voter. This bill would require the SOS to post on his or her Internet Web site a list of the 10 highest contributors of $50,000 or more who have made the largest cumulative contributions to campaign committees formed or existing primarily to support or oppose for each statewide ballot measure. This bill would also require the statewide ballot pamphlet to include a printed statement that refers voters to the SOS's Internet Web site for these contributor lists. This bill would also provide for all of the following: a.Each list of contributors must identify the names of the 10 contributors who have made the largest cumulative contributions to the committee, the total amount of each contributor's contributions, the employer and occupation of the contributor, if any, the city and state of the contributor, and the contributor's committee identification number, if any. b.Each list of contributors must be in order from the contributor who made the largest cumulative amount of contributions to the contributor who made the smallest cumulative amount of contributions. If two or more contributors made an equal amount of contributions, the contributor who made the most recent contribution must be placed higher on the list.c.Each list of contributors must reflect the cumulative amount of contributions received by primarily formed committees beginning 12 months before the date each committee made its first expenditure to qualify, support, or oppose the measure.d.If a contributor is a committee controlled by a candidate, the name of the candidate must be listed.e.If a contributor is a sponsored committee, the name of the sponsor must be listed. f.The SOS must update each list of contributors within five business days after specified campaign statement deadlines if the information in the report affects the lists. During the 16 days before the election for each statewide ballot measure, each list must be updated every 48 hours to include new contributions, with a final update two business days before the election. g.The SOS must, within 10 business days after January 31st, post a final version of each list for any statewide ballot measure voted on in the previous calendar year. SB 844 (PAVLEY) Page 2 h.The SOS must post in a prominent place on the homepage of his or her Internet Web site and in the online version of the statewide ballot pamphlet a hyperlink to the lists of contributors. BACKGROUND Contributor Lists in the Ballot Pamphlet . Numerous prior bills have attempted to add campaign contribution information to the state ballot pamphlet. Most recently, SB 334 (DeSaulnier) of 2011, which was vetoed by Governor Brown, required the state ballot pamphlet to contain a list of the five highest contributors of $50,000 or more to each primarily formed committee supporting or opposing each state measure appearing on the ballot. In his veto message the Governor stated the following: "This bill would require that the voter pamphlet list the top five contributors for and against a ballot measure. Printing of the voter pamphlet starts months before an election, so the required contributor list would only include contributions received more than 15 weeks before an election. I am concerned that this outdated information could mislead voters about the true supporters and opponents of a ballot measure. The Secretary of State's website already provides up-to-date and accurate information on all campaign contributions. It is a helpful resource for concerned voters." It should be noted however that this bill, SB 844, does not require the ballot pamphlet itself to contain the contributor information. Rather, it requires the statewide ballot pamphlet to include a printed statement that refers voters to the SOS's Internet Web site for the required lists of contributors. What is a Primarily Formed Committee ? The PRA defines a "primarily formed committee" as a recipient committee which is formed or exists primarily to support or oppose any of the following: A single candidate. A single measure. A group of specific candidates being voted upon in the same SB 844 (PAVLEY) Page 3 city, county, or multicounty election. Two or more measures being voted upon in the same city, county, multicounty, or state election. What is a Sponsored Committee ? The PRA defines "sponsored committee" as a committee, other than a candidate controlled committee, which has one or more sponsors. Any person (organizations, associations, business entities, etc.), except a candidate or other individual, may sponsor a committee. A person sponsors a committee if any of the following apply: The committee receives 80 percent or more of its contributions from the person or its members, officers, employees, or shareholders. The person collects contributions for the committee by use of payroll deductions or dues from its members, officers, or employees. The person, alone or in combination with other organizations, provides all or nearly all of the administrative services for the committee. The person, alone or in combination with other organizations, sets the policies for soliciting contributions or making expenditures of committee funds. COMMENTS 1.According to the Author : Under current law, the state collects and makes public all contributors to the various committees for and against propositions. However, the Secretary of State does not currently aggregate this information into a single, user-friendly list. In addition, contributions from individual donors are spread out over multiple campaign committees, obfuscating the real total that these individuals and groups have contributed for or against a single issue. Thus, voters are prevented from finding out who are the top contributors for and against a ballot initiative. SB 844 would provide voters with the identities of large financial contributors who pump millions of dollars into campaigns to pass or defeat state ballot initiatives. This bill will direct the Secretary of State to aggregate the existing data in its comprehensive database to identify the top 10 contributor for and against each ballot initiative. SB 844 (PAVLEY) Page 4 This information will be presented in a way which is easily accessible to all voters. In addition, SB 844 will require the Secretary of State to list a web address on the ballot measure to provide the voters with an opportunity to find out who is funding these ballot measures. Ultimately, SB 844 will arm voters with reliable information prior to making their voting decisions, and shed some light on the largest financial contributors in the initiative process. 2.Related Legislation . This bill is similar to provisions contained in SB 27 (Correa) which was pending on the Senate floor awaiting concurrence in Assembly amendments at the time this analysis was printed. SB 27 differs from this bill in that it requires all primarily formed committees that raise $1 million or more to maintain an accurate list of their top 10 contributors and requires those lists to be disclosed on the FPPC's Web site. SB 27 also requires committees to use reasonable efforts to identify the individuals or corporations that are the true source of contributions made to the committee when listing the top contributors. POSITIONS Sponsor: Author Support: California Common Cause California Voter Foundation League of Woman Voters of California MapLight Oppose: None received SB 844 (PAVLEY) Page 5