BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 334
                                                                  Page  1

          Date of Hearing:   July 5, 2011

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                  SB 334 (DeSaulnier) - As Amended:  April 26, 2011

           SENATE VOTE  :   23-14
           
          SUBJECT  :   Elections: statewide ballot pamphlet.

           SUMMARY  :   Requires the state ballot pamphlet to contain 
          information regarding the largest contributors supporting and 
          opposing each state measure that will appear 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 primarily formed committee supporting the 
               measure;

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

             c)   The total amount of each of the above contributions as 
               of 110 days before election day or, if a special election 
               is called on a date before election day for that special 
               election so as to make compliance with the 110-day 
               timeframe infeasible, as of a later date as feasible under 
               timeframes and procedures set forth by the Secretary of 
               State (SOS) for preparation of the state ballot pamphlets 
               for that special election.

             d)   A printed statement that reads substantially similar to 
               the following: "To learn who contributed to committees 
               supporting or opposing each state measure, access the 
               Secretary of State's Internet Web site at �Internet Web 
               site address]."

          2)Requires the lists and statement described above to be 
            followed by a statement that the lists only reflect the 
            highest contributors of $50,000 or more as of 110 days before 








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            election day or, if a special election is called on a date 
            before election day for that special election so as to make 
            compliance with the 110-day timeframe infeasible, as of a 
            later date as feasible under timeframes and procedures set 
            forth by the SOS for preparation of the state ballot pamphlets 
            for that special election.

          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.

           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;

          4)A copy of the analysis of each state measure prepared by the 
            Legislative Analyst; and,

          5)Table of contents, indexes, art work, graphics, and other 
            materials that the SOS determines will make the ballot 
            pamphlet easier to understand or more useful for the average 
            voter.

           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee, to the extent that the additional information 
          required under the provisions of this bill extends the length of 
          the ballot and requires extra pages, there would be additional 
          expenses of approximately $66,000 per page for printing and 
          mailings costs.  However, the SOS's office formats the Voter 
          Information Guide in 16 page increments so oftentimes there are 
          blank pages that could be used for these purposes.  Therefore, 
          actual costs are unknown and will be dependent on the number of 
          initiatives as well as available ballot space.

           COMMENTS  :   








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           1)Purpose of the Bill  :  According to the author, "In recent 
            years, observers noted that interests have increasingly turned 
            to California's initiative system to amend the California 
            Constitution or state statutes to benefit themselves. Because 
            SB 334 requires information to be gathered and disclosed as of 
            110 days before Election Day, the bill will help voters 
            determine the interests behind the qualification efforts of 
            ballot measures."

           2)All Inclusive  :  This bill applies to all state measures, 
            including initiative measures placed on the ballot through 
            voter petitions as well as measures placed on the ballot by 
            the Legislature.

           3)Committee Distinctions  :  This bill requires that certain 
            contributions to primarily formed committees supporting and 
            opposing each state measure be listed in the state ballot 
            pamphlet.  A primarily formed committee means a committee 
            which is formed or exists primarily to support or oppose a 
            measure or candidate, or a group of measures or candidates, as 
            specified.  Aside from individual contributions, a primarily 
            formed committee may also receive contributions from sponsored 
            and controlled committees.  

          A candidate or state measure proponent controls a committee if 
            he or she, his or her agent, or any other committee he or she 
            controls has a significant influence on the actions or 
            decisions of the committee.  Any entity, except a candidate or 
            other individual, may be the sponsor of a committee, if 
            specified conditions apply.  This bill provides that if the 
            contributor is a committee controlled by a candidate, the name 
            of the candidate shall be listed on the ballot pamphlet, and 
            if the contributor is a sponsored committee, the name of the 
            sponsor shall be listed.  

           4)Timing  :  The SOS can begin sending out the state ballot 
            pamphlet to voters on the 40th day before an election.  
            However, a large amount of lead-time is necessary to produce 
            the state ballot pamphlet and to have that pamphlet on public 
            display at least 20 days prior to final production, as 
            required by current law.  To accommodate the timing required 
            for state ballot pamphlet production, this bill requires 
            specific contributors to primarily formed committees 
            supporting and opposing state ballot measures to be listed as 








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            of 110 days before election day.  In addition, this bill 
            provides that if a special election is called on a date before 
            election day for that special election so as to make 
            compliance with the 110-day timeframe infeasible, the list of 
            contributors shall be listed as of a later date as feasible 
            under timeframes and procedures set forth by the SOS for 
            preparation of the state ballot pamphlets for that special 
            election.

           5)Accurate Information  :  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 more than three months prior to an election.  As a 
            result, most, if not all, spending intended to influence 
            voters after a measure has qualified for the ballot will not 
            be disclosed in the ballot pamphlet, which could give voters a 
            misleading picture of the true supporters and opponents of a 
            state ballot measure.  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.  In addition, this 
            bill requires that a statement be included in the pamphlet to 
            notify voters that contributor information is available on the 
            SOS's Internet web site.

           6)Arguments in Support  :  In support of this bill, the California 
            Clean Money Campaign writes, "The information in the ballot 
            pamphlet is a crucial source of information for voters in 
            helping them to decide how to vote on ballot measures.  
            However, it does not currently provide any objective 
            information on the source of campaign contributions in support 
            or opposition to them, something that studies have shown that 
            the vast majority of Californians believe is important to 
            know.  SB 334 is thus a crucial step in providing voters with 
            information they need to know to help make up their minds how 
            to vote."

           7)Arguments in Opposition  :  In opposition to this bill, the 
            Howard Jarvis Taxpayers Association writes:

               The Secretary of State has gone to great lengths in recent 
               years to make financial information available on their 
               website in an easy to read format.  �SB 334] will increase 
               printing costs at a time when the state simply cannot 








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               afford any further exactions?Also, the information would 
               largely become outdated the moment it was published.  
               What's to stop contributors from giving on day 109 before 
               an election?  The measure could arguably lead to less 
               transparency, as more and larger contributions are received 
               in the days and weeks before an election when the sheer 
               volume becomes harder to effectively monitor.

           8)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.

               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. 

           9)Related Legislation  :  This bill is similar to a prior version 
            of AB 65 (Gatto), which was approved by this committee.  
            However, AB 65 was subsequently amended for an unrelated 
            purpose.

          AB 732 (Buchanan) requires the Attorney General's summary 
            prepared in the state voter pamphlet for each state bond 
            measure to include an explanatory table summarizing the 
            Legislative Analyst's Office estimated fiscal impact of the 
            bond measure.  AB 732 was approved by this committee on a 7-0 
            vote and is pending in the Senate Appropriations Committee.

           10)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 








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            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 
           
          Ballot Initiative Strategy Center
          California Clean Money Campaign
          California Common Cause
          California State PTA
          Secretary of State Debra Bowen
           
            Opposition 
           
          California Taxpayers Association
          Howard Jarvis Taxpayers Association

           Analysis Prepared by  :    Maria Garcia / E. & R. / (916) 319-2094