BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                     AB 7|
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                                 THIRD READING


          Bill No:  AB 7
          Author:   Krekorian (D)
          Amended:  8/17/09 in Senate 
          Vote:     27

           
           SENATE ELECTIONS, REAP. & CONST. AMEND. COMM  :  3-2, 7/7/09
          AYES:  Hancock, DeSaulnier, Liu
          NOES:  Walters, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  61-15, 06/02/09 - See last page for vote


           SUBJECT  :    Political Reform Act of 1974

           SOURCE  :     Author


           DIGEST  :    This bill requires, with specified exceptions, a  
          broadcast or mass mailing advertisement supporting or  
          opposing a candidate or ballot measure that is paid for by  
          an independent expenditure to include a statement or phrase  
          that clearly identifies the economic or other special  
          interest of the major donors of $50,000 or more, listing  
          the economic or other special interest in descending order  
          based on the amount of contributions made by the respective  
          donor to the committee, except for a general interest  
          committee.  This bill also requires a committee that files  
          electronically with the Secretary of State to list the  
          Secretary of State's Internet Web site in its disclosure  
          statement.  A committee not required to file electronically  
                                                           CONTINUED





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          would be required to disclose the Uniform Resource Locator  
          for its Internet Web site and to list the committee's  
          principal officer and specified information regarding each  
          donor to the committee who contributed at least $100.   
          (This would not apply to radio advertisements.) 

           ANALYSIS  :    Existing law:

          1.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. 

          2.Requires a 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.

           Comments
           
          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.  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 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  







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          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. 

           Related Legislation
           
          AB 1322 (Huffman), pending on the Assembly floor, specifies  
          the text and format in which a disclosure must appear when  
          such disclosures are required on certain IEs. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/18/09)

          California Common Cause
          New America Foundation

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "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."


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Arambula, Beall, Tom Berryhill,  
            Blakeslee, Blumenfield, Brownley, Buchanan, Caballero,  
            Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,  
            Davis, De La Torre, De Leon, DeVore, Emmerson, Eng,  
            Evans, Feuer, Fong, Fuentes, Furutani, Galgiani, Gilmore,  
            Hall, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,  
            Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza,  
            Monning, Nava, Niello, John A. Perez, V. Manuel Perez,  







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            Portantino, Price, Ruskin, Salas, Saldana, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Yamada, Bass
          NOES:  Anderson, Bill Berryhill, Duvall, Fletcher, Fuller,  
            Gaines, Hagman, Knight, Logue, Miller, Nielsen, Silva,  
            Smyth, Tran, Villines
          NO VOTE RECORDED:  Block, Garrick, Harkey, Nestande


          DLW:nl  8/19/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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