Date: 05/10/2010

Final
BILL SUMMARY for SB10-203

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved prepared amendment L.009 (Attachment D). Th
Moved to refer Senate Bill 10-203, as amended, to 		Pass Without Objection
PASS



08:32 AM -- Senate Bill 10-203

Representative Weissmann, prime sponsor, presented Senate Bill 10-203, concerning independent expenditures in Colorado elections after the United States Supreme Court case of Citizens United V. Federal Elections Comm'n. Representative Weissmann provided background on the issues affected by the bill, and explained the effect of the legislation. Representative Weissmann also discussed the effect of certain forthcoming technical amendments. Representative Weissmann explained the effect of the bill on so-called "527" issue committees. Discussion ensued regarding the effect of current law on campaign finance expenditures and disclosure as compared to the bill, and the need for Senate Bill 10-203.


08:39 AM

The following persons testified regarding Senate Bill 10-203:

08:39 AM -- Mr. Bernie Buescher, Secretary of State, testified in favor of the bill. Mr. Buescher explained the effect of the bill on independent expenditures and disclosure of such expenditures. Mr. Buescher also explained the creation of a new entity for making independent expenditures under the bill. Mr. Buescher responded to questions regarding how independent expenditure committees will operate, and further how they will relate to other types of campaign finance entities. Mr. Buescher responded to further questions regarding the need to create the independent expenditure committee entity for disclosure purposes. Discussion ensued regarding the beneficiaries of creating this entity. Mr. Buescher responded to questions regarding the ability of foreign and nondomestic corporations to make independent expenditures under Senate Bill 10-203.


08:50 AM

Discussion continued regarding the treatment of foreign and nondomestic corporations by the bill. Committee members received two flow charts, one diagraming how independent expenditures are made under current law (Attachment B), and one diagraming how independent expenditures would be made under Senate Bill 10-203 (Attachment C). Discussion ensued regarding the desire of the public to have increased disclosure of campaign finance expenditures, and the effect of the bill on 527 groups. Discussion followed regarding the treatment of ballot issue committees by Senate Bill 10-203, and the balance of disclosure between corporations and labor unions under the bill.

10HseState0510AttachB.pdf 10HseState0510AttachC.pdf


09:00 AM

Discussion continued regarding the treatment of foreign corporations and labor unions by Senate Bill 10-203. Mr. Buescher responded to questions regarding the ability of individuals to make independent expenditures, or to make candidate donations, under the bill. Mr. Buescher responded to further questions regarding the need for individuals to create independent expenditure committees to make independent expenditures under the bill. Discussion ensued regarding the need to define "contribution" in Senate Bill 10-203.

09:07 AM -- Mr. Greg Romberg, representing the Colorado Press Association and Colorado Broadcasters Association, testified in favor of the bill. Mr. Romberg spoke in favor of the public disclosure aspects of the bill. Mr. Romberg responded to questions regarding the proper level of required disclosure for campaign finance expenditures and entities.

09:09 AM -- Mr. Phil Hayes, representing the Colorado American Federation of Labor-Congress of Industrial Organizations, testified in favor of Senate Bill 10-203. Mr. Hayes responded to questions regarding the applicability of the foreign corporation restrictions in the bill to international unions. Discussion ensued regarding the potential for increased campaign finance disclosure under the bill, and the impact of the bill on entity compliance. Discussion followed regarding the disclosure requirements for individuals in membership organizations under the bill. Mr. Hayes responded to questions regarding how unions determine their election-related expenditures.


09:19 AM

Discussion returned to the need for the disclosure requirements in Senate Bill 10-203, and how these requirements will represent changes from current law. Discussion ensued regarding how corporations and labor unions are similar in the processes by which they determine their expenditures on election-related issues. Discussion included the process by which union membership is apprised of union positions on elections. Discussion turned to the difference between "contribution" language in current law and "donation" language in the bill, and disclosure requirements associated with these activities.


09:30 AM

Mr. Hayes responded to questions regarding treatment of disclosure requirements for those who pool their resources to make campaign expenditures, and those who do so individually.

09:31 AM -- Ms. Elena Nunez, representing Colorado Common Cause, testified in favor of the bill. Ms. Nunez spoke in favor of disclosure of campaign finance expenditures, as well as disclaimer laws.

09:33 AM -- Ms. Shirley Francis-Fraser, representing the League of Women Voters, testified in favor of Senate Bill 10-203. Ms. Francis-Fraser discussed the U.S. Supreme Court decision in Citizens United, and spoke in favor of the bill's disclosure mechanisms. Ms. Francis-Fraser explained how the bill changes these requirements in light of the Citizens United decision. Ms. Francis-Fraser responded to questions regarding how the bill "overturns" the Citizens United decision, and the treatment of both corporations and unions by the bill.

09:38 AM -- Mr. Mark Grueskin, representing Citizens for Integrity, testified in favor of the bill. Mr. Grueskin explained how the bill closes a disclosure loophole in light of the Citizens United decision. Mr. Grueskin addressed earlier questions regarding the need for parallel disclosure requirements in state law for corporations and labor unions, as opposed to amending current campaign finance disclosure requirements. Mr. Grueskin then addressed other questions posed during earlier discussions. Mr. Grueskin responded to questions regarding the definition of "donation" in forthcoming amendment L.009 (Attachment D). Discussion ensued regarding the campaign finance disclosure requirements applied to donors under certain circumstances.

10HseState0510AttachD.pdf

09:49 AM

The committee recessed.


10:38 AM

The committee returned to order. Representative Weissmann explained the effect of prepared amendment L.009.
BILL:SB10-203
TIME: 10:40:27 AM
MOVED:Court
MOTION:Moved prepared amendment L.009 (Attachment D). The motion passed without objection.
SECONDED:Labuda
VOTE
Casso
Court
DelGrosso
Hullinghorst
McCann
Miklosi
Murray
Nikkel
Waller
Labuda
Todd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


10:40 AM
BILL:SB10-203
TIME: 10:41:10 AM
MOVED:Court
MOTION:Moved to refer Senate Bill 10-203, as amended, to the Committee on Appropriations with favorable recommendation. The motion passed on a 7-4 roll call vote.
SECONDED:Casso
VOTE
Casso
Yes
Court
Yes
DelGrosso
No
Hullinghorst
Yes
McCann
Yes
Miklosi
Yes
Murray
No
Nikkel
No
Waller
No
Labuda
Yes
Todd
Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS