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.
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          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  
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            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.   
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            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)                                                   
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