BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 400
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 400 (Fong)
          As Amended  August 11, 2014
          Majority vote
           
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          |ASSEMBLY:  |53-24|(April 29,      |SENATE: |23-12|(August 13,    |
          |           |     |2013)           |        |     |2014)          |
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           Original Committee Reference:    E. & R.  

           SUMMARY  :  Requires an initiative, referendum, or recall petition  
          that is circulated by a paid circulator to include a statement  
          identifying the five largest contributors in support of the  
          measure, as specified.  Specifically,  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  
            requires the SOS to post those statements on his or 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  








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            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.

           The Senate amendments  :

          1)Provide that a person who is one of the five largest  
            contributors to a proposed measure is required to be listed on  
            the petition for that measure, pursuant to this bill, only if  
            the person's cumulative contributions to the committee that is  
            seeking to qualify the measure total $10,000 or more. 

          2)Provide that a requirement for the disclosure statement  
            required by this bill to be submitted to the SOS and posted on  
            the SOS's Internet Web site applies only to state initiatives,  
            referenda, and recalls, and not to local measures.

          3)Make a technical change.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  According to the author, "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  
          has found greater than 70 percent support for increasing public  
          disclosure of funding sources for initiative campaigns each of  
          the eight times that they asked that question.  AB 400 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."  
           
          In 2000, then-Assembly Speaker Robert M. Hertzberg created a  








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          commission on the California initiative process.  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.

          The Senate amendments to this bill established a threshold of  
          $10,000 in contributions before a contributor is required to be  
          listed on a petition, pursuant to this bill, and provided that  
          proponents of local measures are not required to submit their  
          disclosure statements to be posted on the SOS's Internet Web  
          site.  This bill, as amended in the Senate, is consistent with  
          Assembly actions.
           

          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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