BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 65
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          Date of Hearing:   March 15, 2011

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                    AB 65 (Gatto) - As Amended:  February 2, 2011
           
          SUBJECT  :   Elections: statewide ballot pamphlet.

           SUMMARY  :   Requires the state ballot pamphlet to contain 
          information about the largest contributors supporting each state 
          measure that will appear on the ballot.  Specifically,  this 
          bill  :  

          1)Requires the state ballot pamphlet, for each state measure to 
            be voted upon, to include, immediately below the analysis of 
            that measure prepared by the Legislative Analyst, a list of 
            the five highest contributors of $50,000 or more to each 
            primarily formed committee supporting the measure and the 
            total amount of each of their contributions as of 110 days 
            before the election.

          2)Requires the list to be followed by a statement that the list 
            only reflects the highest contributors of $50,000 or more as 
            of 110 days before election day.

          3)Provides that if a contributor is a committee controlled by a 
            candidate, the name of the candidate shall be listed.

          4)Provides that if a contributor is a sponsored committee, the 
            name of the sponsor shall be listed.

          5)Makes technical and corresponding changes.

           EXISTING LAW  requires the statewide ballot pamphlet to include 
          information, in a specific order, for each state measure to be 
          voted upon including, but not limited to:

          1)A complete copy of each state measure;

          2)A copy of the specific constitutional or statutory provision, 
            if any, that each state measure would repeal or revise;

          3)A copy of the arguments and rebuttals for and against each 
            state measure; and,









                                                                  AB 65
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          4)A copy of the analysis of each state measure prepared by the 
            Legislative Analyst.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               It has been said that an informed citizenry is the bulwark 
               of democracy. AB 65 seeks to help create a better informed 
               citizenry by giving voters more information when 
               considering initiatives on the ballot. The measure would 
               require the Secretary of State to include in the ballot 
               pamphlet a list of the 5 highest contributors of $50,000 or 
               more to each primarily formed committee supporting each 
               state measure, as well as the total amount of their 
               contributions, as of 110 days before Election Day.  

               With more groups opting to bypass the legislative process 
               and use initiatives to shape public policy, it becomes more 
               important to provide the decision makers, voters, with the 
               most information possible. When a measure goes through the 
               legislative process, there is disclosure at nearly every 
               place in the process, be it lobbyists who state what 
               group(s) they are testifying on behalf of, or letters on 
               the record from groups who are trying to influence the 
               legislative process. It becomes clear to legislators where 
               the real support for measures facing them is coming from. 
               This knowledge leads to better informed decisions on votes. 


               Unfortunately, the level of openness and transparency does 
               not exist with initiatives. Voters are asked to make 
               decisions at the ballot without the benefit of the openness 
               provided by the deliberative, legislative process. This 
               lack of transparency allows interests to spend sometimes 
               millions of dollars to influence voters, often without the 
               voters realization who the groups are that seek to convince 
               them to vote for, or against, a certain initiative measure. 
                

               This sunshine measure seeks to make the electorate better 
               informed as they consider ballot propositions, by allowing 
               them to "follow the money" and see what interests are 








                                                                  AB 65
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               driving the electoral process.  Voters deserve to know 
               whether a ballot initiative is being funded by out-of-state 
               interests or anyone else who donates millions to affect the 
               laws we live by. This ballot measure would result in a 
               better-informed citizenry.

           2)Accurate Information ?  This bill requires that the state 
            ballot pamphlet contain information about contributors to 
            primarily formed committees that support state measures, but 
            does not similarly require that the state ballot pamphlet 
            contain information about contributors to committees that are 
            opposing state ballot measures.  If the author's intent is to 
            provide more transparency for voters on special interests that 
            are driving initiatives, then the author may wish to consider 
            requiring the disclosure of opponents as well.  In addition, 
            this bill could result in larger contributions to an 
            initiative being held off until after the 110-day cutoff 
            proposed by this bill to avoid publication in the ballot 
            pamphlet.

          On the other hand, the proposed 110-day cutoff period 
            accommodates the schedule by which the Secretary of State must 
            finalize the state ballot pamphlet and have it on public 
            display prior to final production.  While proponents of a 
            measure may have spent substantial amounts of money to gather 
            signatures to qualify an initiative for the ballot, it is 
            relatively uncommon for initiative opponents to spend large 
            amounts on an initiative that far in advance of an election.  
            As a result, it seems unlikely that including the disclosure 
            of opponents to an initiative measure would result in more 
            information provided to voters.  This bill could, however, 
            result in voters being given greater information in the state 
            ballot pamphlet about those entities responsible for funding 
            the effort to qualify a measure for the ballot.

           3)Previous Legislation  :  SB 1202 (DeSaulnier) of 2010 was 
            substantially similar to this bill.  SB 1202 was vetoed by 
            Governor Schwarzenegger, who wrote in his veto message: 

               This bill would?create confusion for voters and encourage 
               late contributions. Large donors could avoid being included 
               on the list by limiting contributions until the deadline 
               had passed.  This would undermine the intent of this bill 
               and could instead mislead voters as to the identity of the 
               major contributors.








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               Additionally, this measure creates significant cost 
               pressure to print information that is already available at 
               the Secretary of State website,  www.sos.ca.gov .  Voters 
               have access to an online database that is up-to-date and 
               includes contributors in support and opposition of a 
               measure.  Printing a limited list is expensive and 
               unnecessary. 

           4)Related Legislation  :  SB 334 (DeSaulnier) is substantially 
            similar to this bill.  SB 334 is pending in the Senate 
            Committee on Elections and Constitutional Amendments.

           5)Political Reform Act of 1974  :  California voters passed an 
            initiative, Proposition 9, in 1974 that created the Fair 
            Political Practices Commission and codified significant 
            restrictions and prohibitions on candidates, officeholders, 
            and lobbyists.  That initiative is commonly known as the 
            Political Reform Act (PRA).  Amendments to the PRA that are 
            not submitted to the voters must further the purposes of the 
            initiative and require a two-thirds vote of both houses of the 
            Legislature, unless the amendments are to specified provisions 
            to add information to the ballot pamphlet.  This bill would 
            require additional information to be included in the ballot 
            pamphlet, and therefore requires a majority vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Common Cause
          Fair Political Practices Commission

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Maria Garcia / E. & R. / (916) 319-2094