BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 844|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  SB 844
          Author:   Pavley (D), et al.
          Amended:  5/27/14
          Vote:     21

           
           SENATE ELECTIONS & CONST. AMEND. COMM.  :  5-0, 3/18/14
          AYES:  Torres, Anderson, Hancock, Padilla, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  6-1, 5/23/14
          AYES:  De Le�n, Walters, Hill, Lara, Padilla, Steinberg
          NOES:  Gaines


           SUBJECT  :    Ballot measure contributions

           SOURCE  :     Author


           DIGEST  :    This bill requires the Secretary of State (SOS) to  
          create an Internet Web site, or use other available technology,  
          to consolidate information about each ballot measure in a manner  
          that is easy for voters to access and understand.  The Internet  
          Web site will be required to include a summary of each ballot  
          measure, a list of each committee primarily formed to support or  
          oppose a ballot measure, and a list of a committee's top 10  
          contributors, as specified.  Requires the statewide ballot  
          pamphlet to include a printed statement that refers voters to  
          the SOS's Internet Web site for a list of committees primarily  
          formed to support or oppose a ballot measure, and information on  
          how to access the committee's top 10 contributors.


                                                                CONTINUED





                                                                     SB 844
                                                                     Page  
          2


           ANALYSIS  :    

          Existing law:

           1. Provides, pursuant to the Political Reform Act (PRA), for  
             the comprehensive regulation of campaign financing, including  
             requiring the reporting of campaign contributions and  
             expenditures, as defined, and imposing other reporting and  
             recordkeeping requirements on campaign committees, as  
             defined.

           2. Requires each campaign committee formed or existing  
             primarily to support or oppose a statewide ballot measure to  
             file with the SOS periodic reports identifying the sources  
             and amounts of contributions received during specified  
             periods. 

           3. Specifies what information must be included in the statewide  
             ballot pamphlet, including, but not limited to:

                   A complete copy of each measure.

                   A copy of the arguments and rebuttals for and against  
                each state measure.

                   A copy of the analysis of each state measure by the  
                Legislative Analyst.

                   Tables 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.

          This bill:

          1.Requires the SOS to make available the complete state ballot  
            pamphlet over the Internet.

          2.Requires the SOS to create an Internet Web site, or use other  
            available technology, to consolidate information about each  
            ballot measure in a manner that is easy for voters to access  
            and understand.  The information shall include all of the  
            following:

                                                                CONTINUED





                                                                     SB 844
                                                                     Page  
          3


             A.   A summary of the ballot measure's content.

             B.   A list of each committee primarily formed to support or  
               oppose the ballot measure, and a means to access the  
               sources of funding reported for each committee.  The  
               sources of funding shall be updated as new information  
               becomes available to the public.

             C.   For committees primarily formed to support or oppose a  
               state ballot measure that raise $1 million or more for an  
               election, the list of the committee's top 10 contributors  
               provided to the Fair Political Practices Commission (FPPC).  
                The FPPC shall provide top 10 contributor lists, and any  
               subsequent updates to the lists, to the SOS. 

             D.   Any other Internet Web site hyperlinks to other relevant  
               information.

          3.Requires a ballot pamphlet to contain a printed statement, if  
            the ballot contains an election for a state measure, that  
            refers voters to the SOS's Internet Web site for a list of  
            committees primarily formed to support or oppose a ballot  
            measure, and information on how to access the committee's top  
            10 contributors.

          4.Requires a printed statement on a ballot pamphlet to appear  
            immediately below the analysis prepared by the Legislative  
            Analyst, that refers voters to the SOS's Web site for a list  
            of committees primarily formed to support or oppose a ballot  
            measure, and information on how to access the committee's top  
            10 contributors.

           Background
           
           Contributor lists in the ballot pamphlet  .  Numerous prior bills  
          have attempted to add campaign contribution information to the  
          state ballot pamphlet.  Most recently, SB 334 (DeSaulnier,  
          2011), which was vetoed by Governor Brown, would have required  
          the state ballot pamphlet to contain a list of the five highest  
          contributors of $50,000 or more to each primarily formed  
          committee supporting or opposing each state measure appearing on  
          the ballot.  


                                                                CONTINUED





                                                                     SB 844
                                                                     Page  
          4

          It should be noted however that this bill does not require the  
          ballot pamphlet itself to contain the contributor information.   
          Rather, it requires the statewide ballot pamphlet to include a  
          printed statement that refers voters to the SOS's Internet Web  
          site for the required lists of contributors.

           Primarily formed committee  .  The PRA defines a "primarily formed  
          committee" as a recipient committee which is formed or exists  
          primarily to support or oppose any of the following: 

           A single candidate. 

           A single measure. 

           A group of specific candidates being voted upon in the same  
            city, county, or multicounty election. 

           Two or more measures being voted upon in the same city,  
            county, multicounty, or state election.

           Sponsored committee  .  The PRA defines "sponsored committee" as a  
          committee, other than a candidate controlled committee, which  
          has one or more sponsors.  Any person (organizations,  
          associations, business entities, etc.), except a candidate or  
          other individual, may sponsor a committee.  A person sponsors a  
          committee if any of the following apply: 

           The committee receives 80% or more of its contributions from  
            the person or its members, officers, employees, or  
            shareholders. 

           The person collects contributions for the committee by use of  
            payroll deductions or dues from its members, officers, or  
            employees. 

           The person, alone or in combination with other organizations,  
            provides all or nearly all of the administrative services for  
            the committee. 

           The person, alone or in combination with other organizations,  
            sets the policies for soliciting contributions or making  
            expenditures of committee funds.

           Related legislation  .  This bill is similar to provisions  

                                                                CONTINUED





                                                                     SB 844
                                                                     Page  
          5

          contained in SB 27 (Correa, Chapter 16, Statutes of 2104) which  
          requires all primarily formed committees that raise $1 million  
          or more to maintain an accurate list of their top 10  
          contributors and requires those lists to be disclosed on the  
          FPPC's Web site.  SB 27 also requires committees to use  
          reasonable efforts to identify the individuals or corporations  
          that are the true source of contributions made to the committee  
          when listing the top contributors.

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

          According to the Senate Appropriations Committee, one-time costs  
          of $45,000 and $40,000 annual ongoing to the SOS (General Fund).

           SUPPORT  :   (Verified  5/27/14)

          California Clean Money Campaign
          California Common Cause
          California Forward Action Fund
          California Voter Foundation
          League of Woman Voters of California 
          MapLight
          SEIU California

           ARGUMENTS IN SUPPORT  :    According to the author's office, under  
          current law, the state collects and makes public all  
          contributors to the various committees for and against  
          propositions.  However, the SOS does not currently aggregate  
          this information into a single, user-friendly list.  In  
          addition, contributions from individual donors are spread out  
          over multiple campaign committees, obfuscating the real total  
          that these individuals and groups have contributed for or  
          against a single issue.  Thus, voters are prevented from finding  
          out who are the top contributors for and against a ballot  
          initiative. 

          This bill provides voters with the identities of large financial  
          contributors who pump millions of dollars into campaigns to pass  
          or defeat state ballot initiatives.  

          This bill will direct the SOS to aggregate the existing data in  
          its comprehensive database to identify the top 10 contributor  
          for and against each ballot initiative.  This information will  

                                                                CONTINUED





                                                                     SB 844
                                                                     Page  
          6

          be presented in a way which is easily accessible to all voters.  
          In addition, this bill will require the SOS to list a web  
          address on the ballot measure to provide the voters with an  
          opportunity to find out who is funding these ballot measures. 

          Ultimately, this bill will arm voters with reliable information  
          prior to making their voting decisions, and shed some light on  
          the largest financial contributors in the initiative process.


          RM:k  5/27/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****






























                                                                CONTINUED