BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2357
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          ASSEMBLY THIRD READING
          AB 2357 (Saldana)
          As Amended  April 8, 2010
          2/3 vote 

           ELECTIONS           7-0         APPROPRIATIONS      13-1        
               
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Adams, Bill         |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Berryhill, Coto, Mendoza, |     |Coto, Davis, Bonnie       |
          |     |Saldana, Swanson          |     |Lowenthal, Hall, Miller,  |
          |     |                          |     |Nielsen, Skinner,         |
          |     |                          |     |Solorio, Torlakson, Hill  |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Norby                     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires certain expenditures made in connection with  
          polls or surveys regarding ballot measures to be disclosed on  
          campaign reports.  Specifically,  this bill  requires a committee  
          that is primarily formed for the qualification or support of, or  
          opposition to, an initiative or ballot measure, to include the  
          following information in campaign statements filed by the  
          committee:

          1)The amount of each expenditure made in connection with a poll  
            or survey used in a communication to influence voters  
            regarding the qualification or passage of an initiative or  
            ballot measure.

          2)The amount of each expenditure made in connection with a poll  
            or survey used to gauge the public's opinion on the ballot  
            title and summary of an initiative or ballot measure.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Minor absorbable costs to the Fair Political Practices  
            Commission (FPPC), which administers and enforces the  
            Political Reform Act (PRA), potentially offset by penalty  
            revenues.

          2)Potential non-reimbursable costs to local governments for  








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            prosecution, offset to some extent by fine revenues.

           COMMENTS  :  According to the author, "In the 1960s, there were 47  
          initiative proposals submitted for review.  That number  
          increased to 391 in the 1990's, and then jumped to 647 in the  
          2000-2009 decade. One contributing factor for this drastic  
          increase is that initiative proponents frequently choose to  
          submit numerous, largely duplicative, measures to the State to  
          have their ballot titles and summaries drafted, with the intent  
          of ultimately pursuing signatures for only one of them.  In one  
          particularly egregious example this year, a total of seven  
          similarly-worded initiative proposals were filed.  In this  
          practice, sometimes referred to as 'ballot-title shopping,'  
          proponents will then commission polls or surveys to gauge the  
          public's opinion of the nuanced ballot titles and summaries in  
          order to determine which version might fare the best in a  
          petition drive, or raise the most money from potential  
          contributors.  While it is not the intent of this bill to alter  
          that practice, it is clear that these polling activities are on  
          par with other communication efforts to qualify and pass an  
          initiative, and therefore should adhere to the same disclosure  
          requirements.  The [FPPC] has found on numerous occasions that  
          when results of a poll or survey are used in a communication to  
          advocate the qualification or passage of a ballot measure, the  
          cost of conducting the poll or survey constitutes a reportable  
          expenditure.  While records of this determination can be found  
          in FPPC Advice Letters, it is not clearly stated in Code. AB  
          2357 will codify those findings."

          The FPPC has long held that an initiative, referendum, or recall  
          does not become a "measure" for the purposes of the PRA until  
          the proponents begin to circulate petitions to qualify the  
          proposal for the ballot.  However, it is also the longstanding  
          position of the FPPC that once a proposal becomes a measure,  
          campaign statements filed by committees supporting or opposing  
          the measure must include contributions received and expenditures  
          made in anticipation of the proposal being placed on the ballot,  
          even if those contributions and expenditures were made before  
          the proposal became a "measure" (In re: Fontana (1976), 2 FPPC  
          Ops. 25).

          In requests for advice, the FPPC has distinguished between  
          payments made by an entity other than a committee that are  
          exploratory in nature from payments that are used to expressly  








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          advocate for the qualification or passage of a ballot measure.   
          Given that general policy, an FPPC campaign manual indicates  
          that the cost of a poll or survey is a reportable expenditure  
          under the PRA if the results of that poll or survey are used in  
          a communication to influence voters regarding the qualification  
          or passage of a measure.  However, the same manual indicates  
          that the costs of a poll or survey to determine the feasibility  
          of drafting a measure are  not  reportable as long as the results  
          from the poll or survey are not used in a communication to  
          influence voters.

          This bill expressly requires committees that are primarily  
          formed for the qualification or support of, or opposition to, an  
          initiative or ballot measure, to disclose the amount of money  
          spent on certain polls or surveys on campaign statements if  
          certain conditions are met.  First, this bill requires  
          expenditures on a poll to be disclosed if that poll is used in a  
          communication to influence voters regarding the qualification or  
          passage of an initiative or ballot measure.  Because  
          expenditures on polls are already required to be disclosed in  
          these circumstances under the FPPC's interpretation of the PRA,  
          this provision of the bill has little substantive effect other  
          than to codify the FPPC's interpretation.

          This bill also requires, however, that expenditures on polls by  
          a committee primarily formed for the qualification or support  
          of, or opposition to, an initiative or ballot measure be  
          disclosed on campaign reports if those polls are used to gauge  
          the public's opinion of the ballot title and summary of an  
          initiative or ballot measure.  This provision of the bill  
          appears to require disclosure of certain polling expenditures  
          that are not required to be disclosed under existing law.  

          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 









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