BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 65
                                                                  Page  1

          Date of Hearing:   April 6, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 65 (Gatto) - As Amended:  March 22, 2011 

          Policy Committee:                              ElectionsVote:5-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill amends the Political Reform Act (PRA) to require the 
          state ballot pamphlet to contain information about the largest 
          contributors supporting and opposing each ballot measure 
          appearing on the ballot.  Specifically, this bill:

          1)Requires the state ballot pamphlet, immediately below the 
            analysis of a state ballot measure prepared by the Legislative 
            Analyst, to include:

             a)   A list of the five highest contributors of $50,000 or 
               more to each committee supporting the measure, 

             b)   A list of the five highest contributors of $50,000 or 
               more to each committee opposing the measure. 

             c)   The total amount of each of the above contributions as 
               of 110 days before the election.

          2)Requires the list to be followed by a statement that the list 
            reflects only the highest contributors of $50,000 or more as 
            of 110 days before election day. (This timeframe accommodates 
            the Secretary of State's schedule for finalizing the pamphlet 
            prior to printing.)

           FISCAL EFFECT  

          Potential minor GF costs for additional printing in the state 
          ballot pamphlet. For every additional page required due to the 
          bill's requirement, the cost would be $66,000. However, the 
          Secretary of State's (SOS's) office formats the Voter 
          Information Guide in 16-page increments, thus there is often 








                                                                  AB 65
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          blank space available for additional information, such as that 
          required by AB 65.

           COMMENTS  

          1)Purpose  . According to the author, "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? 
            Unfortunately �with the initiative process], ?�v]oters are 
            asked to make decisions at the ballot without the benefit of 
            the openness provided by the deliberative, legislative 
            process? 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 
            driving the electoral process."

           2)Prior Legislation . SB 1202 (DeSaulnier) of 2010, which 
            required a similar listing, but only for the five largest 
            contributors supporting an initiative, was vetoed by Governor 
            Schwarzenegger, who argued that the bill would "create 
            confusion for voters and encourage late contributions" and 
            would create cost pressure at the SOS's Office.

           3)Related Legislation  . SB 334 (DeSaulnier), pending in Senate 
            Elections, is substantially similar to SB 1202.

           4)The PRA  , passed by the voters in 1974, created the Fair 
            Political Practices Commission and codified significant 
            restrictions and prohibitions on candidates, officeholders, 
            and lobbyists.  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, such as those proposed in this bill, 
            are to add information to the ballot pamphlet, whereby only a 
            majority vote is required.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081