BILL ANALYSIS
AB 7
Page 1
ASSEMBLY THIRD READING
AB 7 (Krekorian)
As Amended May 14, 2009
2/3 vote
ELECTIONS 6-0 APPROPRIATIONS 12-2
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|Ayes:|Fong, Adams, Coto, |Ayes:|De Leon, Ammiano, Charles |
| |Mendoza, Saldana, Swanson | |Calderon, Davis, Fuentes, |
| | | |Hall, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, Torlakson |
| | | | |
|-----+--------------------------+-----+-----------------------------|
| | |Nays:|Nielsen, Harkey |
| | | | |
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SUMMARY : Requires an independent expenditure (IE) advertisement
that supports or opposes a candidate or ballot measure to
contain a statement identifying the economic or other special
interests of the major donors to the committee. Requires the
committee to provide an address for a Web site that lists the
donors to the committee. Specifically, this bill :
1)Requires every broadcast or mass mailing advertisement
supporting or opposing a candidate or ballot measure that is
paid for by an IE to include both of the following:
a) A statement or phrase that clearly identifies the
economic or other special interest of the major donors of
$50,000 or more to the committee; and,
b) The Uniform Resource Locator (URL) for an Internet Web
site established by the committee that lists the
committee's principal officer and all donors who made
contributions of $100 or more to the committee.
2)Provides that if any of the major donors of $50,000 or more to
the committee is another committee, that major donor shall be
identified by the names of the economic or other special
interest that made the highest cumulative contributions of
$50,000 or more to that committee. Requires the economic or
other special interest of the major donors of $50,000 or more
AB 7
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to be listed in descending order based on the amount of the
contributions made by the respective donor to the committee.
EXISTING LAW requires a:
1)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.
2)Broadcast or mass mailing advertisement supporting or opposing
a candidate or ballot measure that is paid for by an IE to
include a disclosure statement identifying the name of the
committee making the expenditure and the names of the persons
from whom the committee making the IE received its two highest
cumulative contributions of $50,000 or more during the
12-month period prior to the expenditure.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs to the Fair Political Practices Commission
(FPPC), which enforces the Political Reform Act (PRA), will be
minor and absorbable.
COMMENTS : According to the author, "Given the volume of cash
contributed to ballot measure committees and IE committees with
the goal of influencing California's political process, AB 7 has
a simple premise: the voters, and those affected by the
political influence of such committees, have a right to know who
is trying to move their votes. AB 7 approaches this problem by
expanding the disclosures required on broadcasts and mailers by
. . . independent expenditure campaigns."
Existing law generally requires IEs and ads supporting or
opposing ballot measures to include a disclosure statement
identifying the top two donors of $50,000 or more to the
committee paying for the ad. Additionally, existing law
requires any committee that supports or opposes one or more
ballot measures to name itself using a name or phrase that
clearly identifies the economic or other special interest of its
major donors of $50,000 or more; and, since the name of the
committee paying for an advertisement is required to be included
in the advertisement, any ad in support of or in opposition to a
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ballot measure will include an identification of the economic or
other special interest of the major donors to the committee
funding the ad.
This bill places a similar requirement on ads that are paid for
by IEs. However, rather than requiring the committee name to
include the economic or other special interest of the major
donors of $50,000 or more to the committee, this bill instead
requires that the economic or other special interest of the
donors of $50,000 or more to the committee funding the ad be
included in the ad. Additionally, to ensure that IEs contain a
full disclosure of the interests that are funding an ad, this
bill provides that if one of the major donors of $50,000 or more
to the committee funding the ad is another committee, the ad
must also include the economic or special interest of the major
donors to the committee that made the donation.
California voters passed an initiative, Proposition 9, in 1974
that created the FPPC and codified significant restrictions and
prohibitions on candidates, officeholders and lobbyists. That
initiative is commonly known as the PRA. Amendments to the PRA
that are not submitted to the voters, such as those contained in
this bill, must further the purposes of the initiative and
require a two-thirds vote of both houses of the Legislature.
Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094
FN: 0000891