Legislators have proposed greater disclosure by donors,
higher fines for violations and new powers for officials to
probe suspicious contributions to certain groups.
SACRAMENTO - State lawmakers are moving to curb anonymous
political donations in California after a national election
in which nonprofit groups secretly poured hundreds of
millions of dollars into campaigns.
Legislators have proposed greater disclosure by donors,
higher fines for violations and new powers for officials to
investigate suspicious contributions to certain groups.
Other measures would boost disclosure requirements for
political advertising and campaign websites.
The moves were prompted largely by an Arizona group's
$11-million donation this year to a California campaign
committee, which used the money to oppose Gov. Jerry
Brown's tax-hike measure and support another ballot
initiative that was intended to curb unions' political
fundraising.
State election officials sued the Arizona group to
determine the identities of the contributors - only to
discover that the money had come from two other nonprofits,
which under federal law are not required to reveal their
donors. State law requires groups to identify only donors
who gave money specifically for political purposes.
Ann Ravel, chairwoman of the Fair Political Practices
Commission, said new legislation is necessary to update the
Political Reform Act, the Watergate-era law that governs
campaign finance in the state.
Amendments to the 1974 law require a two-thirds vote. It is
unclear whether California Democrats, who now wield
historic supermajorities in both houses of the Legislature,
will use their newfound powers to make the proposed
changes.
State Sens. Leland Yee (D-San Francisco) and Ted Lieu
(D-Torrance) have introduced legislation, SB 3, to close
the state loophole for nonprofits. Their bill would require
nonprofits that give at least $100,000 to a political
campaign over the course of a year to release the names of
the donors behind the contribution.
"Laundering money through nonprofits in an attempt to avoid
transparency is fundamentally undemocratic," Yee said. "Our
democracy should not be bought and sold in shady backroom
deals."
The rise of so-called dark money is a byproduct of the U.S.
Supreme Court's 2010 ruling in Citizens United vs. Federal
Election Commission, which lifted the ban on direct
political expenditures by corporations. That triggered a
surge of election activity by groups incorporated under the
tax code's section 501(c)4 as social welfare organizations,
which are allowed to engage in issue advocacy.
Advocates for more campaign finance reporting said they
have been pushing lawmakers for years to tighten
California's disclosure rules, which are already among the
strongest in the nation.
"It took $11 million to get their attention," said Phillip
Ung, a policy advocate at Common Cause, which filed the
original complaint about the Arizona donation. "Campaign
strategists are constantly adapting their strategies to
sneak as much money into campaigns from secret donors as
possible, and the law needs to keep up with those
strategists."
Assemblyman Roger Dickinson (D-Sacramento) has legislation,
AB 45, to prevent what he called last-minute "money bombs"
in elections. It would require nonprofits participating in
a political campaign to identify any donors giving at least
$50,000 six months before an election.
"This is the kind of information voters and the public need
to have before they cast their votes," Dickinson said.
The bill would also empower the state's political watchdog
to seek injunctions against nonprofits to compel
disclosure.
Other proposals target political advertising.
State Sens. Mark Leno (D-San Francisco) and Jerry Hill
(D-San Mateo) have introduced SB 52, which would require
the top three funders of political ads to be identified in
the spots and on the campaign's website.
Another bill, SB 26 by state Sen. Louis Correa (D-Santa
Ana), would increase the size of the disclosure notice on
slate mailers, which are paid advertisements for candidates
and ballot measures, telling voters who prepared and
promoted the fliers.
