BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        AB 400|
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                                    THIRD READING


          Bill No:  AB 400
          Author:   Fong (D), et al.
          Amended:  8/11/14 in Senate
          Vote:     21


           SENATE ELECTIONS & CONST. AMEND. COMM.  :  3-1, 6/4/13
          AYES:  Hancock, Yee, Torres
          NOES:  Anderson
          NO VOTE RECORDED:  Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  53-24, 4/29/13 - See last page for vote


           SUBJECT  :    Petitions:  initiative, referendum, or recall

           SOURCE  :     Author


           DIGEST  :    This bill requires an initiative, referendum, or  
          recall petition that is circulated by a paid circulator to  
          include a statement identifying the five largest contributors of  
          $10,000 or more in support of the measure.

           Senate Floor Amendments  of 8/11/14 make a technical change to  
          avoid unintentional changes to an existing code section.

           ANALYSIS  :    

          Existing law:
           
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           1.Requires political committees, as defined, to periodically  
            report contributions received and expenditures made to support  
            or oppose the qualification or passage of an initiative,  
            referendum, or recall measure.

          2.Requires an advertisement for or against any ballot measure to  
            include a disclosure statement identifying any person whose  
            cumulative contributions are $50,000 or more, as specified.

          3.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.

          4.Requires that any state or local initiative petition contain a  
            statement notifying voters of their right to inquire whether  
            the petition is being circulated by a paid signature gatherer  
            or a volunteer.

          This bill:

          1.Requires a state or local initiative, referendum, or recall  
            petition that is circulated by a paid circulator, as defined,  
            who is paid by a committee to include, in 12-point type at the  
            top of the petition, a disclosure statement identifying the  
            names of the persons from whom the committee received the five  
            largest cumulative contributions of $10,000 or more, as  
            defined.

          2.Provides that if more than five donors meet the disclosure  
            threshold at identical contribution levels, the five highest  
            donations shall be disclosed according to chronological  
            sequence.

          3.Requires the disclosure statement to be updated within seven  
            days of any change in the five largest cumulative  
            contributors.

          4.Requires a committee that employs one or more paid circulators  
            to circulate a state initiative, referendum, or recall  
            petition to submit the disclosure statement required by this  
            bill, and any updates, to the Secretary of State (SOS), and  

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            requires the SOS to post those statements on his/her Internet  
            Web site.

          5.Requires the petition to include the name of the committee  
            immediately following the disclosure statement.  Requires the  
            committee to identify itself using a name or phrase that  
            clearly identifies the economic or other special interest of  
            its major donors of $50,000 or more.  Provides that if the  
            major donors to the committee share a common employer, the  
            identity of that employer shall be disclosed.

          6.Provides that local elections officials shall not be required  
            to verify the accuracy of the disclosures required by this  
            bill, or to reapprove the petition when the petition is  
            updated to reflect a change in the five largest cumulative  
            contributors.

          7.Provides that signatures collected on a petition shall not be  
            invalid solely because the information required by this bill  
            was absent or inaccurate.

           Background
           
           Speaker's Commission on the California Initiative Process  .  In  
          2000, then-Assembly Speaker Robert M. Hertzberg created a  
          Commission on the California Initiative Process (Commission).   
          The goal of the Commission was to examine the initiative process  
          and recommend changes to make the process more responsive to  
          voter concerns.  The Commission issued its final report in  
          January 2002.  Among the recommendations proposed by the  
          Commission was a requirement that all petitions to qualify a  
          statewide initiative for the ballot be accompanied by a written  
          campaign financial disclosure, which may be printed on,  
          attached, or bound to the petition.

           Prior Legislation  

          SB 469 (Bowen, 2005) would have required an initiative,  
          referendum, or recall petition to include a statement  
          identifying the five largest contributors in support of the  
          measure, among other provisions.  SB 469 was vetoed by Governor  
          Schwarzenegger.

          AB 1500 (Hertzberg, 2002) would have required any person who  

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          circulates an initiative petition for signatures to make  
          available to potential signers the names of the top five  
          contributors to the committee and the cumulative amount  
          contributed by each as disclosed on the committee's most recent  
          campaign report, among other provisions.  AB 1500 died on the  
          Senate Inactive File.

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

           SUPPORT  :   (Verified  8/11/14)

          American Association of University Women
          California Common Cause
          California Conference Board of Amalgamated Transit Union
          California Teamsters Public Affairs Council
          California Voter Foundation
          Communications Workers of America, District 9
          Engineers and Scientists of California, IFPTE Local 20, AFL-CIO
          International Association of Heat and Frost Insulators, Local 5
          International Longshore and Warehouse Union
          Pacific Media Workers Guild
          Professional and Technical Engineers, IFPTE Local 21, AFL-CIO
          United Food and Commercial Workers Western States Council
          UNITE-HERE, AFL-CIO
          Utility Workers Union of America, Local 132, AFL-CIO

           OPPOSITION  :    (Verified  8/11/14)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    According to the author's office:  

               While committees supporting or opposing ballot measures are  
               required to file periodic campaign finance reports,  
               potential signers of the petitions do not have easy access  
               to this information when approached by a petition  
               circulator.  Petitions contain official titles, summaries,  
               and (in some cases) the text of the proposed measures, but  
               there is no readily available information regarding the  
               source or sponsors of the measures at the time a voter is  
               asked to sign a petition.  While the voter can ask the  
               circulator for this information, the circulator is not  
               required to know or disclose this information.  Circulators  

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               often only know who is paying them and little else about  
               the petitions they are helping to qualify.

               Surveys consistently have shown that voters want improved  
               public disclosure of the sources that are funding signature  
               gathering for proposed ballot measures.  In fact, the  
               Public Policy Institute of California (PPIC) has found  
               greater than 70% support for increasing public disclosure  
               of funding sources for initiative campaigns each of the  
               eight times that they asked that question.  In their most  
               recent survey in March of this year, the PPIC found that  
               81% of Democrats, 80% of Republicans, and 85% of  
               Independents supported increased disclosure of the funding  
               sources for initiative campaigns.

               This bill will improve transparency about the financial  
               backers of proposed ballot measures by requiring  
               initiative, referendum, and recall petitions to include a  
               listing of the five top donors to the committee that is  
               funding the petition drive.

               Unfortunately, it is far too common for paid petition  
               circulators to mislead voters about the effects of proposed  
               ballot measures in order to get those voters to sign the  
               petitions.  By requiring petitions to include information  
               about the largest financial donors to proposed ballot  
               measures, this bill will provide important clues about the  
               potential impacts of those measures, and will help those  
               voters see through misleading statements made by petition  
               circulators.

           ASSEMBLY FLOOR  :  53-24, 4/29/13
          AYES:  Alejo, Ammiano, Bloom, Blumenfield, Bocanegra, Bonilla,  
            Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Garcia, Gatto, Gomez, Gordon, Gray, Hall, Roger Hern�ndez,  
            Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell,  
            Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel P�rez,  
            Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,  
            Torres, Weber, Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Achadjian, Allen, Bigelow, Conway, Dahle, Donnelly, Beth  
            Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue,  
            Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen,  
            Patterson, Wagner, Waldron, Wilk

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          NO VOTE RECORDED:  Atkins, Ch�vez, Vacancy


          RM:e  8/12/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE




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