Bill Text: CA AB1217 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Political Reform Act of 1974: electioneering and issue lobbying communications: disclosures.

Spectrum: Strong Partisan Bill (Democrat 16-1)

Status: (Engrossed - Dead) 2019-08-19 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1217 Detail]

Download: California-2019-AB1217-Amended.html

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Amended  IN  Assembly  April 03, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1217

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Introduced by Assembly Member Mullin
(Coauthor: Assembly Member Ting)
(Coauthors: Senators Dodd and Hill)

February 21, 2019

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An act to amend Sections 82015, 82025, 84501, 84502, 84503, 84504, 84504.1, 84504.2, 84504.3, 84504.4, 84504.5, 84504.6, and 84506.5, and to add Section Sections 82040 and 86116.6 to, the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL'S DIGEST

AB 1217, as amended, Mullin. Political Reform Act of 1974: campaign disclosures.

The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and activities. Among other things, the act requires specified disclosures in advertisements regarding the source of the advertisement. The act defines “advertisement” for these purposes to mean a general or public communication that is authorized and paid for by a committee for the purpose of supporting or opposing a candidate or candidates for elective office or a ballot measure or ballot measures. The act also requires certain advertisements paid for by certain committees to disclose the names of the top contributors, which is defined for these purposes to mean the persons from whom the committee paying for an advertisement has received its three highest cumulative contributions of $50,000 or more.

This bill would expand the definition of “advertisement” to include any general or public communication that is an “electioneering communication” or an “issue advocacy advertisement,” as defined. The bill would require a “major advertiser,” which is defined as a person who has made expenditures for advertisements totaling $10,000 or more in a calendar year, to comply with specified disclosures for regarding the source of the advertisement. The bill would change the term “top contributors” to “top funders.” The bill would define “top funders” of a major advertiser, and would require an advertisement paid for by a major advertiser that is not a committee to disclose the names of the top funders to the major advertiser.

The act requires lobbyist employers and any person who directly or indirectly makes payments to influence legislative or administrative action of $5,000 or more in value in any calendar quarter to file periodic reports with the Secretary of State containing specified information including, among other things, the total amount of certain payments made to influence legislative or administrative action.

This bill would require a person who is required to file these periodic reports, and who is also a major advertiser, to additionally report to the Secretary of State each expenditure of $1,000 or more made for issue advocacy advertisements within 72 hours of making the expenditure.

The act defines “contribution” to mean a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received or if it is clear from the surrounding circumstances that the payment is not made for political purposes. The act defines “expenditure” to mean a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes, and specifies when a payment is made for political purposes.

This bill would specify when a payment is made for political purposes for purposes of these definitions, which would include a payment made for the purpose of an electioneering communication.

Because a violation of the act is punishable as a misdemeanor, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a ²/₃ vote of each house of the Legislature and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 This act shall be known and may be cited as the Issue Ad DISCLOSE Act.

Issue Ad DISCLOSE Act

SECTION 1.SEC. 2.

 Section 82015 of the Government Code is amended to read:

82015.

 (a) “Contribution” means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received or if it is clear from the surrounding circumstances that the payment is not made for political purposes.

(b) “Contribution” includes all of the following:

(1) The purchase of tickets for events such as dinners, luncheons, rallies, and similar fundraising events; the candidate’s own money or property used on behalf of the candidate’s candidacy, other than personal funds of the candidate used to pay either a filing fee for a declaration of candidacy or a candidate statement prepared pursuant to Section 13307 of the Elections Code; the granting of discounts or rebates not extended to the public generally or the granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; the payment of compensation by any person for the personal services or expenses of any other person if the services are rendered or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration.

(2) The transfer of anything of value received by a committee from another committee, unless full and adequate consideration is received.

(3) The payment of public moneys by a state or local governmental agency for a communication to the public that satisfies both of the following:

(A) The communication expressly advocates the election or defeat of a clearly identified candidate or the qualification, passage, or defeat of a clearly identified measure, or, taken as a whole and in context, unambiguously urges a particular result in an election.

(B) The communication is made at the behest of the affected candidate or committee.

(4) A payment made by a person to a multipurpose organization as defined and described in Section 84222.

(5) (A)   A payment made by a lobbyist or a cohabitant of a lobbyist for costs related to a fundraising event held at the home of the lobbyist, including the value of the use of the home as a fundraising event venue. A payment described in this paragraph is attributable to the lobbyist for purposes of Section 85702.

(B) A payment made by a lobbying firm for costs related to a fundraising event held at the office of the lobbying firm, including the value of the use of the office as a fundraising event venue.

(c) “Contribution” does not include any of the following:

(1) Amounts received pursuant to an enforceable promise to the extent those amounts have been previously reported as a contribution. However, the fact that those amounts have been received shall be indicated in the appropriate campaign statement.

(2) Except as provided in paragraph (5) of subdivision (b), a payment made by an occupant of a home or office for costs related to any meeting or fundraising event held in the occupant’s home or office if the costs for the meeting or fundraising event are five hundred dollars ($500) or less.

(3) Volunteer personal services or payments made by any individual for the individual’s own travel expenses if the payments are made voluntarily without any understanding or agreement that they will be, directly or indirectly, repaid to the individual.

(4) A behested payment, as defined in Section 82004.5, but only as to the behesting committee, elected officer, or member of the Public Utilities Commission.

(d) A payment is made for political purposes if it is:

(1) For the purpose of influencing or attempting to influence the action of the voters for or against the nomination or election of a candidate or candidates, or the qualification or passage of any measure.

(2) For the purpose of an electioneering communication, as defined in Section 84501.

(3) Received by or made at the behest of one of the following or any agent thereof:

(A) A candidate.

(B) A controlled committee.

(C) An official committee of a political party, including a state central committee, county central committee, assembly district committee, or any subcommittee of such committee.

(D) An organization formed or existing primarily for political purposes, including, but not limited to, a political action committee established by any membership organization, labor union, or corporation.

SEC. 2.SEC. 3.

 Section 82025 of the Government Code is amended to read:

82025.

 (a) “Expenditure” means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes. “Expenditure” does not include a candidate’s use of the candidate’s own money to pay for either a filing fee for a declaration of candidacy or a candidate statement prepared pursuant to Section 13307 of the Elections Code. An expenditure is made on the date the payment is made or on the date consideration, if any, is received, whichever is earlier.

(b) A payment is made for political purposes if it is any of the following:

(1) For purposes of influencing or attempting to influence the action of the voters for or against the nomination or election of a candidate or candidates, or the qualification or passage of any measure.

(2) For purposes of an electioneering communication, as defined in Section 84501.

(3) Made by any of the following:

(A) A candidate, unless it is clear from surrounding circumstances that the payment was made for personal purposes unrelated to the candidate’s candidacy or status as an officeholder.

(B) A controlled committee.

(C) An official committee of a political party, including a state central committee, county central committee, assembly district committee, or any subcommittee of such committee.

(D) An organization formed or existing primarily for political purposes, as described in paragraph (1), including, but not limited to, a political action committee established by any membership organization, labor union, or corporation.

(c) “Expenditure” includes any monetary or nonmonetary payment made by any person, other than the persons or organizations described in subdivision (b), that is used for communications that expressly advocate the nomination, election, or defeat of a clearly identified candidate or candidates, or the qualification, passage, or defeat of a clearly identified ballot measure.

(1) “Clearly identified” is defined as follows:

(A) A candidate is clearly identified if the communication states the candidate’s name, makes unambiguous reference to the candidate’s office or status as a candidate, or unambiguously describes the candidate in any manner.

(B) A group of candidates is clearly identified if the communication makes unambiguous reference to some well-defined characteristic of the group, even if the communication does not name each candidate. A communication that clearly identifies a group of candidates and expressly advocates their election or defeat is reportable as an expenditure, but the expenditure need not be allocated among all members of the class or group on the campaign statement reporting the expenditure.

(C) A measure that has qualified to be placed on the ballot is clearly identified if the communication states a proposition number, official title, or popular name associated with the measure. In addition, the measure is clearly identified if the communication refers to the subject matter of the measure and either states that the measure is before the people for a vote or, taken as a whole and in context, unambiguously refers to the measure.

(D) A measure that has not qualified to be placed on the ballot is clearly identified if the communication refers to the subject matter of the measure and the qualification drive.

(2) A communication “expressly advocates” the nomination, election, or defeat of a candidate or the qualification, passage, or defeat of a measure if it contains express words of advocacy such as “vote for,” “elect,” “support,” “cast your ballot,” “vote against,” “defeat,” “reject,” “sign petitions for,” or, within 60 days before an election in which the candidate or measure appears on the ballot, the communication otherwise refers to a clearly identified candidate or measure so that the communication, taken as a whole, unambiguously urges a particular result in an election.

(A) Except for those communications paid for with public moneys by a state or local government agency, a communication, taken as a whole, unambiguously urges a particular result in an election if it is not susceptible of any reasonable interpretation other than as an appeal to vote for or against a specific candidate or measure. A communication is not susceptible of any reasonable interpretation other than as an appeal to vote for or against a specific candidate or measure when, taken as a whole, it could only be interpreted by a reasonable person as containing an appeal to vote for or against a specific candidate or measure because of both of the following:

(i) The electoral portion of the communication is unmistakable, unambiguous, and suggestive of only one meaning.

(ii) Reasonable minds could not differ as to whether it encourages a vote for or against a clearly identified candidate or measure, or encourages some other kind of action on a legislative, executive, or judicial matter or issue.

(B) The following nonexhaustive examples, referring to candidates or measures on the ballot in an upcoming election, illustrate statements that in most contexts would not be susceptible of any reasonable interpretation other than as an appeal to vote for or against a specific candidate or measure: “Smith’s the One”; “No Measure A”; “Rally ‘round O’Malley”; “Create jobs with Measure X”; “Only Nancy Brown can clean out City Hall”; “Proposition 123 - your last chance to save California”; “Joe Green will earn your trust”; “Bob Boone is unqualified for office and a special-interest puppet”; “Shirley Hall - bad for California, bad for you.”

(C) The following nonexhaustive examples, referring to candidates or measures on the ballot in an upcoming election, illustrate statements that would be susceptible of a reasonable interpretation other than as an appeal to vote for or against a specific candidate or measure: “Assembly Member Nancy Brown needs to be tough on criminals. Call her and tell her to stand firm on AB 100”; “Poor children need a home too. Support the Mayor’s stance against more budget cuts”; “Thank you, Supervisor Smith, for continuing to support our farmers.”

(D) Safe Harbor. A communication does not expressly advocate the nomination, election, or defeat of a candidate, or the qualification, passage, or defeat of a measure, within the meaning of this section, if both of the following apply:

(i) The communication does not mention an election, candidacy, political party unless required by law, opposing candidate, or voting by the general public, and it does not take a position on the character, qualifications, or fitness for office of a candidate or officeholder, or the merits of a ballot measure.

(ii) The communication focuses on a legislative, executive, or judicial matter or issue, either urging a candidate to take a particular position or action with respect to the matter or issue, or urging the public to adopt a particular position and to contact the candidate with respect to the matter or issue.

(E) Rules of Interpretation. If a communication does not qualify for the safe harbor described in subparagraph (D), the commission shall consider if the communication has an interpretation other than as an appeal to vote for or against a clearly identified candidate or measure, in order to determine if, on balance, the communication is not susceptible of any reasonable interpretation other than as an appeal to vote for or against a clearly identified candidate or measure.

(3) Reporting Expenditures.

(A) The amount of an expenditure reportable pursuant to this subdivision shall include all costs directly attributable to the communication, including, but not limited to, salaries, production, postage, space or time purchased, agency fees, printing, and any additional administrative or overhead costs attributable to the communication. The expenditure does not include any of the regular ongoing business overhead that will be incurred in similar amounts regardless of the communication.

(B) When a printed or broadcast communication circulates outside the state, the expenditure may be calculated on the basis of the fraction of the total cost attributable to circulation within the state.

(C) Costs directly traceable to the communication are reportable when the communication is made, or when payments are made in connection with the development, production, or dissemination of the communication, whichever occurs first.

(D) The costs of printing and distributing petitions, recruiting, training, and paying expenses of petition circulators, and other costs incurred in connection with the qualification of a measure are reportable expenditures.

(4) Notwithstanding this subdivision, “expenditure” does not include costs incurred for communications that expressly advocate the nomination, election, or defeat of a clearly identified candidate or candidates, or the qualification, passage, or defeat of a clearly identified measure or measures by either of the following:

(A) A broadcasting station, including a cable or satellite television operation, programmer, or producer, internet website, or a regularly published newspaper, magazine, or other periodical of general circulation, including an internet or electronic publication, that routinely carries news and commentary of general interest, for the cost of covering or carrying a news story, commentary, or editorial.

(B) A regularly published newsletter or regularly published periodical, other than those specified in subparagraph (A), whose circulation is limited to an organization’s members, employees, shareholders, other affiliated individuals, and those who request or purchase the publication. This subparagraph applies only to the costs regularly incurred in publishing the newsletter or periodical. If additional costs are incurred because the newsletter or periodical is issued on other than its regular schedule, expanded in circulation, or substantially altered in style, size, or format, the additional costs are expenditures.

(5) The term “expenditure” also does not include uncompensated internet activity by an individual supporting or opposing a candidate or measure as stated in Section 18215.2 of Title 2 of the California Code of Regulations.

(d) A payment used to make contributions, as defined in Section 82015, is an expenditure.

SEC. 3.SEC. 4.

 Section 82040 is added to the Government Code, to read:

82040.

 (a) “Lobbying-available donation” means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received or if it is clear from the surrounding circumstances that the payment is not made for lobbying purposes.

(b) “Lobbying-available donations” do not include either of the following:

(1) Donations from a donor who designates or restricts the donation for purposes other than for lobbying or issue advocacy advertisements.

(2) Donations from a donor who prohibits the multipurpose organization’s use of its donation for lobbying or issue advocacy advertisements.

SEC. 4.SEC. 5.

 Section 84501 of the Government Code is amended to read:

84501.

 For purposes of this article, the following definitions apply:

(a) (1) “Advertisement” means any general or public communication that is any of the following:

(A) Authorized and paid for by a committee for the purpose of supporting or opposing a candidate or candidates for elective office or a ballot measure or ballot measures.

(B) An electioneering communication.

(C) An issue advocacy advertisement.

(2) “Advertisement” does not include any of the following:

(A) A communication from an organization, other than a political party, to its members.

(B) An electronic media communication addressed to recipients, such as email messages or text messages, from a multipurpose organization or committee to persons who have opted in or asked to receive messages from the organization or from a business to persons that have opted-in to receive messages from the business regarding political actions. A customer of a business is not considered to have opted in unless they have explicitly checked or replied to a statement that is primarily about whether they would like to receive messages of a political nature from the business.

(C) Any communication that was solicited by the recipient, including, but not limited to, acknowledgments for contributions or information that the recipient communicated to the organization.

(D) A campaign button smaller than 10 inches in diameter; a bumper sticker smaller than 60 square inches; or a small tangible promotional item, such as a pen, pin, or key chain, upon which the disclosure required cannot be conveniently printed or displayed.

(E) Wearing apparel.

(F) Sky writing.

(G) Any other type of communication, as determined by regulations of the Commission, for which inclusion of the disclosures required by Sections 84502 to 84509, inclusive, is impracticable or would severely interfere with the committee’s ability to convey the intended message due to the nature of the technology used to make the communication.

(b) “Cumulative contributions” means the cumulative amount of contributions received by a committee beginning 12 months before the date of the expenditure and ending seven days before the time the advertisement is sent to the printer or broadcaster.

(c) “Electioneering communication” means an advertisement that refers to one or more clearly identified candidates for elective office, but does not expressly advocate for the election or defeat of the candidate or candidates, and that is disseminated, broadcast, or otherwise communicated during the period beginning 120 days before the primary or special election and ending on the date of the general or runoff election. 60 days before a general or special election or 30 days before a primary election concerning the candidate or candidates.

(d) “Issue advocacy advertisement” means an advertisement that clearly refers to and reflects a view on the subject matter, description, or name of one or more clearly identified pending legislative actions, administrative actions, or ballot measures and does any of the following:

(1) Can only be reasonably interpreted as an appeal for the recipient of the advertisement to take action by contacting an employee or elected official of the state government or any local government or encouraging others to contact those persons.

(2) Refers to one or more clearly identified pending legislative actions and is disseminated, broadcast, or otherwise communicated within 60 days of the end of the legislative session.

(3) Refers to one or more clearly identified ballot measures and is disseminated, broadcast, or otherwise communicated within 120 60 days of the election concerning that measure or measures.

(e) “Major advertiser” means a person who has made expenditures for advertisements totaling ten thousand dollars ($10,000) or more in a calendar year.

(f) (1) “Top funders” of a committee means the persons from whom the committee paying for an advertisement has received its three highest cumulative contributions of fifty thousand dollars ($50,000) or more.

(A) If a committee primarily formed to support or oppose a state candidate or ballot measure contributes funds to another committee primarily formed to support or oppose the same state candidate or ballot measure and the funds used for the contribution were earmarked to support or oppose that candidate or ballot measure, the committee receiving the earmarked contribution shall disclose the contributors who earmarked their funds as the top funder or funders on the advertisement if the definition of top funder provided for in this paragraph is otherwise met. If the committee receiving the earmarked contribution contributes any portion of the contribution to another committee primarily formed to support or oppose the specifically identified ballot measure or candidate, that committee shall disclose the true source of the contribution to the new committee receiving the earmarked funds. The new committee shall disclose the funder on the new committee’s advertisements if the definition of top funder provided for in this paragraph is otherwise met.

(i) The primarily formed committee making the earmarked contribution shall provide the primarily formed committee receiving the earmarked contribution with the name and address of the contributor or contributors who earmarked their funds and the amount of the earmarked contribution from each contributor at the time the contribution is made. If the committee making the contribution received earmarked contributions that exceed the amount contributed or received contributions that were not earmarked, the committee making the contribution shall use a reasonable accounting method to determine which top funders to identify pursuant to this subparagraph, but in no case shall the same contribution be disclosed more than one time to avoid disclosure of additional contributors who earmarked their funds.

(ii) The committee receiving the earmarked contribution may rely on the information provided pursuant to clause (i) for purposes of complying with the disclosure required by Section 84503 and shall be considered in compliance with Section 84503 if the information provided pursuant to clause (i) is disclosed as otherwise required.

(iii) For purposes of this subparagraph, funds are considered “earmarked” if any of the circumstances described in subdivision (b) of Section 85704 apply.

(B) If an advertisement paid for by a committee supports or opposes a candidate, the determination of top funders pursuant to paragraphs (1) and (3) shall not include any nonprofit organization exempt from federal income taxation pursuant to Section 501(c)(3) of the United States Internal Revenue Code or any person who has prohibited in writing the use of the person’s contributions to support or oppose candidates if the committee does not use such contributions to support or oppose candidates.

(2) “Top funders” of a major advertiser that is not a committee but that has made expenditures for issue advocacy advertisements totaling fifty thousand dollars ($50,000) or more in a calendar year, and that did not make the expenditures using only available nondonor or small donor funds, means the lobbying donors from whom the advertiser has received its three highest cumulative lobbying-available donations of ten thousand dollars ($10,000) or more beginning 12 months before the date of the expenditure and ending seven days before the time the advertisement is sent to the printer or broadcaster.

(A) For purposes of this paragraph, “nondonor funds” means investment income, including capital gains, or income earned from providing goods, services, or facilities, whether related or unrelated to the multipurpose organization’s program, sale of assets, or other receipts that are not donations.

(B) For purposes of this paragraph, “small donor funds” means donations from persons who made cumulative donations of less than one thousand dollars ($1,000) beginning 12 months before the date of the expenditure and ending seven days before the time the advertisement is sent to the printer or broadcaster.

(C) For purposes of this paragraph, “lobbying donor” means the person who made the lobbying-available donation, unless the donation was earmarked for lobbying for a clearly identified pending legislative action or administrative action, in which case the “lobbying donor” is the person who earmarked the lobbying-available donation.

(3) A tie between two or more funders qualifying as top funders shall be resolved by determining the funder who made the most recent contribution or payment to the committee, in which case the most recent funder shall be listed before any other funder of the same amount.

SEC. 5.SEC. 6.

 Section 84502 of the Government Code is amended to read:

84502.

 (a) (1) Any advertisement paid for by a committee pursuant to subdivision (a) of Section 82013, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the words “Ad paid for by” followed by the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101.

(2) Any advertisement paid for by a committee pursuant to subdivision (a) of Section 82013 that is a political party committee or a candidate controlled committee established for an elective office of the controlling candidate shall include the words “Ad paid for by” followed by the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101 if the advertisement is any of the following:

(A) Paid for by an independent expenditure.

(B) An advertisement supporting or opposing a ballot measure.

(C) A radio or television advertisement.

(b) Any advertisement paid for by a committee pursuant to subdivision (b) or (c) of Section 82013 shall include the words “Ad paid for by” followed by the name that the filer is required to use on campaign statements pursuant to subdivision (o) of Section 84211.

(c) Any advertisement paid for by a major advertiser that is not a committee shall include the words “Ad paid for by” followed by the name of the major advertiser.

(d) Notwithstanding subdivisions (a), (b), and (c), if an advertisement is a printed letter, internet website, or email message, the text described in subdivisions (a), (b), and (c) may include the words “Paid for by” instead of “Ad paid for by.”

SEC. 6.SEC. 7.

 Section 84503 of the Government Code is amended to read:

84503.

 (a) Any advertisement paid for by a committee pursuant to subdivision (a) of Section 82013, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the words “committee major funding from” followed by the names of the top funders to the committee paying for the advertisement. If fewer than three funders qualify as top contributors, only those contributors that qualify shall be disclosed pursuant to this section. If there are no contributors that qualify as top funders, this disclosure is not required.

(b) Any advertisement paid for by a major advertiser that is not a committee pursuant to subdivision (a) of Section 82013 and that has top funders shall include the words “major funding from” followed by the names of the top funders to the major advertiser. If fewer than three funders qualify as top funders, only those funders that qualify shall be disclosed pursuant to this section.

(c) The disclosure of a top funder pursuant to this section need not include terms such as “incorporated,” “committee,” “political action committee,” or “corporation,” or abbreviations of these terms, unless the term is part of the contributor’s name in common usage or parlance.

(d) If this article requires the disclosure of the name of a top funder that is a committee pursuant to subdivision (a) of Section 82013 and is a sponsored committee pursuant to Section 82048.7 with a single sponsor, only the name of the single sponsoring organization shall be disclosed.

(e) This section does not apply to a committee as defined by subdivision (b) or (c) of Section 82013.

SEC. 7.SEC. 8.

 Section 84504 of the Government Code is amended to read:

84504.

 (a) An advertisement paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, that is disseminated over the radio or by telephonic means shall include the disclosures required by Sections 84502, 84503, and 84506.5 at the beginning or end of the advertisement, read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement, and shall last no less than three seconds.

(b) Notwithstanding the definition of “top funders” in subdivision (f) of Section 84501, radio and prerecorded telephonic advertisements shall disclose only the top two funders of fifty thousand dollars ($50,000) or more unless the advertisement lasts 15 seconds or less or the disclosure statement would last more than eight seconds, in which case only the single top funder of fifty thousand dollars ($50,000) or more shall be disclosed.

SEC. 8.SEC. 9.

 Section 84504.1 of the Government Code is amended to read:

84504.1.

 (a) An advertisement paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, that is disseminated as a video, including advertisements on television and videos disseminated over the internet, shall include the disclosures required by Sections 84502 and 84503 at the beginning or end of the advertisement.

(b) The disclosure required by subdivision (a) shall be written and displayed for at least five seconds of a broadcast of 30 seconds or less or for at least 10 seconds of a broadcast that lasts longer than 30 seconds.

(1) The written disclosure required by subdivision (a) shall appear on a solid black background on the entire bottom one-third of the television or video display screen, or bottom one-fourth of the screen if the committee does not have or is otherwise not required to list top funders, and shall be in a contrasting color in Arial equivalent type, and the type size for the smallest letters in the written disclosure shall be 4 percent of the height of the television or video display screen. The top funders, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top funder who made the largest cumulative contributions on the first line. All disclosure text shall be centered horizontally in the disclosure area. If there are any top funders, the written disclosures shall be underlined in a manner clearly visible to the average viewer, except for the names of the top funders, if any.

(2) The name of the top funder shall not have its type condensed or have the spacing between characters reduced to be narrower than a normal non-condensed Arial equivalent type, unless doing so is necessary to keep the name of the top funder from exceeding the width of the screen.

(c) An advertisement that is an independent expenditure supporting or opposing a candidate shall include the appropriate statement from Section 84506.5 in the solid black background described in paragraph (1) of subdivision (b) below all other text required to appear in that area in a contrasting color and in Arial equivalent type no less than 2.5 percent of the height of the television or video display screen. If including this statement causes the disclosures to exceed one-third of the television or video display screen, then it may instead be printed immediately above the background with sufficient contrast that is easily readable by the average viewer.

SEC. 9.SEC. 10.

 Section 84504.2 of the Government Code, as amended by Section 5 of Chapter 777 of the Statutes of 2018, is amended to read:

84504.2.

 (a) A print advertisement paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502, 84503, and 84506.5, displayed as follows:

(1) The disclosure area shall have a solid white background and shall be in a printed or drawn box on the bottom of at least one page that is set apart from any other printed matter. All text in the disclosure area shall be in contrasting color and centered horizontally in the disclosure area.

(2) The text shall be in an Arial equivalent type with a type size of at least 10-point for printed advertisements designed to be individually distributed, including, but not limited to, mailers, flyers, and door hangers.

(3) The top of the disclosure area shall include the disclosure required by Sections 84502 and 84503. The text of the disclosure shall be underlined if there are any top funders.

(4) The top funders, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top funder who made the largest cumulative contributions on the first line. The name of each of the top funders shall be centered horizontally in the disclosure area and shall not be underlined. The names of the top funders shall not be printed in a type that is condensed to be narrower than a normal non-condensed Arial equivalent type.

(5) A committee subject to Section 84506.5 shall include the disclosure required by Section 84506.5, which shall be underlined and on a separate line below any of the top funders.

(6) A committee subject to Section 84223 shall next include the text “Funding Details At [insert Commission internet website],” which shall be underlined and printed on a line separate from any other text.

(b) Notwithstanding paragraphs (2) and (4) of subdivision (a), the disclosures required by Sections 84502, 84503, and 84506.5 on a printed advertisement that is larger than those designed to be individually distributed, including, but not limited to, yard signs or billboards, shall be in Arial equivalent type with a total height of at least 5 percent of the height of the advertisement, and printed on a solid background with sufficient contrast that is easily readable by the average viewer. The text may be adjusted so it does not appear on separate horizontal lines, with the top funders separated by a comma.

(c) Notwithstanding the definition of “top funders” in subdivision (f) of Section 84501, newspaper, magazine, or other public print advertisements that are 20 square inches or less shall be required to disclose only the single top funder of fifty thousand dollars ($50,000) or more. funder.

SEC. 10.SEC. 11.

 Section 84504.2 of the Government Code, as amended by Section 5.5 of Chapter 777 of the Statutes of 2018, is amended to read:

84504.2.

 (a) A print advertisement paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502, 84503, and 84506.5, displayed as follows:

(1) The disclosure area shall have a solid white background and shall be in a printed or drawn box on the bottom of at least one page that is set apart from any other printed matter. All text in the disclosure area shall be in contrasting color and centered horizontally in the disclosure area.

(2) The text shall be in an Arial equivalent type with a type size of at least 10-point for printed advertisements designed to be individually distributed, including, but not limited to, mailers, flyers, and door hangers.

(3) The top of the disclosure area shall include the disclosure required by Sections 84502 and 84503. The text of the disclosure shall be underlined if there are any top funders.

(4) The top funders, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top funder who made the largest cumulative contributions on the first line. The name of each of the top funders shall be centered horizontally in the disclosure area and shall not be underlined. The names of the top funders shall not be printed in a type that is condensed to be narrower than a normal non-condensed Arial equivalent type.

(5) A committee subject to Section 84506.5 shall include the disclosure required by Section 84506.5, which shall be underlined and on a separate line below any of the top funders.

(6) A committee subject to Section 84223 shall next include the text “Funding Details At [insert link to Secretary of State internet website page with top 10 contributor lists],” which shall be underlined and printed on a line separate from any other text.

(b) Notwithstanding paragraphs (2) and (4) of subdivision (a), the disclosures required by Sections 84502, 84503, and 84506.5 on a printed advertisement that is larger than those designed to be individually distributed, including, but not limited to, yard signs or billboards, shall be in an Arial equivalent type with a total height of at least 5 percent of the height of the advertisement, and printed on a solid background with sufficient contrast that is easily readable by the average viewer. The text may be adjusted so it does not appear on separate horizontal lines, with the top funders separated by a comma.

(c) Notwithstanding the definition of “top funders” in subdivision (f) of Section 84501, newspaper, magazine, or other public print advertisements that are 20 square inches or less shall be required to disclose only the single top funder of fifty thousand dollars ($50,000) or more. funder.

SEC. 11.SEC. 12.

 Section 84504.3 of the Government Code, as amended by Section 6 of Chapter 777 of the Statutes of 2018, is amended to read:

84504.3.

 (a) An electronic media advertisement, other than an email message or internet website, paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall comply with both of the following:

(1) Include the text “Who funded this ad?” in a contrasting color and a font size that is easily readable by the average viewer.

(2) Such text shall be a hyperlink to an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5 in a contrasting color and in no less than 8-point font.

(b) Notwithstanding subdivision (a), the text required by paragraph (1) of subdivision (a) is not required if including the language would be impracticable. In such circumstances the advertisement need only include a hyperlink to an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5.

(c) Notwithstanding subdivisions (a) and (b), an email message or internet website paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502, 84503, and 84506.5, printed clearly and legibly in a contrasting color and in no less than 8-point font at the top or bottom of the email message and every publicly accessible page of the internet website.

(d) An internet website that is hyperlinked as provided for in paragraph (2) of subdivision (a) shall remain online and available to the public until 30 days after the date of the election in which the candidate or ballot measure supported or opposed by the advertisement was voted upon.

(e) An advertisement made via a form of electronic media that is audio only and therefore cannot include either of the disclaimers in subdivision (a) shall comply with the disclaimer requirements for radio advertisements in Section 84504.

(f) An advertisement made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, shall only be required to include the disclosures required by Sections 84502, 84503, and 84506.5 in a contrasting color and in no less than 8-point font on the committee’s profile, landing page, or similar location and shall not be required to include the disclaimer required by subdivision (a) on each individual post, comment, or other similar communication.

(g) The disclaimer required by this section does not apply to advertisements made via social media for which the only expense or cost of the communication is compensated staff time unless the social media account where the content is posted was created only for the purpose of advertisements governed by this title.

SEC. 12.SEC. 13.

 Section 84504.3 of the Government Code, as amended by Section 6.5 of Chapter 777 of the Statutes of 2018, is amended to read:

84504.3.

 (a) An electronic media advertisement that is a graphic, image, animated graphic, or animated image that the online platform hosting the advertisement allows to link to an internet website, paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall comply with both of the following:

(1) Include the text “Who funded this ad?,” “Paid for by,” or “Ad Paid for by” in a contrasting color and a font size that is easily readable by the average viewer for the duration of the advertisement.

(2) The text shall be included or displayed as a hyperlink, icon, button, or tab to an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5 in a contrasting color and in no less than 8-point font.

(b) Notwithstanding subdivision (a), the text required by paragraph (1) of subdivision (a) is not required if including the language would take up more than one-third of the graphic or image. In those circumstances, the advertisement need only include a hyperlink to an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5.

(c) Notwithstanding subdivisions (a) and (b), an email message, or internet website, paid for by a major advertiser or a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502, 84503, and 84506.5 printed clearly and legibly in a contrasting color and in no less than 8-point font at the top or bottom of the email message, or at the top or bottom of every publicly accessible page of the internet website, as applicable.

(d) An internet website that is linked as provided for in paragraph (2) of subdivision (a) shall remain online and available to the public until 30 days after the date of the election in which the candidate or ballot measure supported or opposed by the advertisement was voted upon.

(e) An advertisement made via a form of electronic media that is audio only and therefore cannot include either of the disclosures in subdivision (a) shall comply with the disclosure requirements for radio advertisements in Section 84504.

(f) An electronic media advertisement that is disseminated as a video shall comply with the disclosure requirements of Sections 84504.1, 84504.4, and 84504.5, depending on the type of major advertiser or committee that paid for it. If the video is longer than 30 seconds, the disclosures required by Sections 84504.1, 84504.4, and 84504.5 shall be made at the beginning of the advertisement.

(g) (1) An advertisement made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, shall only be required to include the disclosures required by Sections 84502, 84503, and 84506.5 in a contrasting color that is easily readable by the average viewer and in no less than 10-point font on the cover or header photo of the committee’s profile, landing page, or similar location and shall not be required to include the disclosure required by subdivision (a) on each individual post, comment, or other similar communication. The disclosures specified in this subdivision shall be fully visible on the cover or header photo when the profile, landing page, or similar location is viewed from any electronic device that is commonly used to view this form of electronic media.

(2) Notwithstanding paragraph (1), if making the disclosures specified in paragraph (1) fully visible on a commonly used electronic device would be impracticable, the cover or header photo of the profile, landing page, or similar location need only include a hyperlink, icon, button, or tab to an internet website containing the disclosures specified in paragraph (1).

(h) The disclosures required by this section do not apply to advertisements made via social media for which the only expense or cost of the communication is compensated staff time unless the social media account where the content is posted was created only for the purpose of advertisements governed by this title.

SEC. 13.SEC. 14.

 Section 84504.4 of the Government Code is amended to read:

84504.4.

 (a) A radio or television advertisement that is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measure, is not paid for by an independent expenditure, and is not an electioneering communication or issue advocacy advertisement, shall include the disclosure required by Section 84502 subject to the following requirements:

(1) In a radio advertisement, the words shall be included at the beginning or end of the advertisement and read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement.

(2) In a television advertisement, the words shall appear in writing for at least four seconds with letters in a type size that is greater than or equal to 4 percent of the height of the screen.

(b) An advertisement that is made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, that is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measure and is not paid for by an independent expenditure, shall include the disclosure required by Section 84502 in accordance with subdivision (g) of Section 84504.3.

SEC. 14.SEC. 15.

 Section 84504.5 of the Government Code is amended to read:

84504.5.

 An advertisement that is an independent expenditure or an electioneering communication, and is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502 and 84506.5. An advertisement that supports or opposes a ballot measure or is an issue advocacy advertisement, and is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosure required by Section 84502. A disclosure that is included in an advertisement pursuant to this section is subject to the following requirements:

(a) A radio or telephone advertisement shall include the required disclosures at the beginning or end of the advertisement and be read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement, and shall last no less than three seconds.

(b) A video advertisement, including television and videos disseminated over the internet, shall include the required disclosures in writing at the beginning or end of the advertisement in a text that is of sufficient size to be readily legible to an average viewer and in a color that has a reasonable degree of contrast with the background of the advertisement for at least four seconds. The required disclosure must also be spoken during the advertisement if the written disclosure appears for less than five seconds of a broadcast of 30 seconds or less or for at least 10 seconds of a broadcast that lasts longer than 30 seconds.

(c) (1) A print advertisement shall include the required disclosures in no less than 10-point font and in a color that has a reasonable degree of contrast with the background of the advertisement.

(2) Notwithstanding paragraph (1), the required disclosures on a print advertisement that is larger than those designed to be individually distributed, such as a yard sign or billboard, shall in total constitute no less than 5 percent of the total height of the advertisement and shall appear in a color that has a reasonable degree of contrast with the background of the advertisement.

(d) An electronic media advertisement shall include the disclosures required by Section 84504.3.

SEC. 16.

 Section 84504.6 of the Government Code is amended to read:

(a)

84504.6.

 (a) For purposes of this article, the following terms have the following meanings:

(1) “Online platform” means a public-facing internet website, web application, or digital application, including a social network, ad network, or search engine, that sells advertisements directly to advertisers. A public-facing internet website, web application, or digital application is not an online platform for purposes of this article to the extent that it displays advertisements that are sold directly to advertisers through another online platform.

(2) (A)   “Online platform disclosed advertisement” means either of the following:

(i) A paid electronic media advertisement on an online platform made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, for which the committee pays the online platform, unless all advertisements on the platform are video advertisements that can comply with Section 84504.1. Individual posts, comments, or other similar communications are not considered online platform disclosed advertisements if they are posted without payment to the online platform.

(ii) A paid electronic media advertisement on an online platform that is not any of the following:

(I) A graphic, image, animated graphic, or animated image that the online platform hosting the advertisement allows to hyperlink to an internet website containing required disclosures, as described in subdivision (a) of Section 84504.3.

(II) Video, audio, or email.

(B) Electronic media advertisements that are not online platform disclosed advertisements as defined in subparagraph (A) shall follow disclosure requirements for electronic media advertisements under Section 84504.3.

(b) A major advertiser or a committee that disseminates an online platform disclosed advertisement shall do all of the following:

(1) Upon requesting the dissemination, expressly notify the online platform through which the advertisement would be disseminated disseminated, using the online platform’s chosen notification method, that the advertisement is an advertisement as defined in Section 84501.

(2) (A) Provide the online platform with the disclosure name of the committee. advertiser.

(B) For purposes of this section, “disclosure name” means the text required by Section 84503, followed by a colon, followed by, surrounded in quotation marks, the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101. 84101, the name that the filer is required to use on campaign statements pursuant to subdivision (o) of Section 84211, or the name of the major advertiser. If no disclosure text is required by Section 84503, “disclosure name” means the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101. 84101, the name that the filer is required to use on campaign statements pursuant to subdivision (o) of Section 84211, or the name of the major advertiser.

(C) If the disclosure name changes due to a change in the top contributors funders or the name of the committee, advertiser, the committee advertiser shall provide the online platform with an updated disclosure name within five business days.

(3) Provide the online platform with the name of the candidate to which the advertisement refers and the office to which the candidate is seeking election, as applicable, or number or letter of the ballot measure and the jurisdiction to which the advertisement refers.

(4) Provide the online platform with the name and identification number of the committee that paid for the advertisement. of the advertiser that paid for the advertisement and its identification number, if it is assigned an identification number.

(b)

(c) An online platform that disseminates a major advertiser or committee’s online platform disclosed advertisement shall do one of the following:

(1) Display “Paid for by” or “Ad Paid for by” followed by the disclosure name provided by the committee, advertiser, easily readable to the average viewer, located adjacent to any text stating that the advertisement is an advertisement or is promoted or sponsored. The online platform may display only one hundred or more characters of the disclosure name if it is followed by a “…” that is clearly clickable and that links to a page as described in paragraph (3).

(2) The online platform may instead display a hyperlink, icon, button, or tab with the text “Who funded this ad?,” “Paid for by,” or “Ad Paid for by” that is clearly clickable in the same or similar font and in at least the same font size as the online platform’s text, and easily readable to the average viewer, stating that the advertisement is an advertisement or is promoted or sponsored, that links to a page as described in paragraph (3).

(3) Hyperlinks, icons, buttons, or tabs used for the purposes described in paragraphs (1) and (2) shall be linked to the profile or landing page of the committee advertiser that paid for the advertisement; to another page to which the average viewer would normally navigate to view additional information about a committee an advertiser containing the disclosure name in a manner that is easily seen and readable by the average viewer; or to an Internet Web site internet website containing the disclosure required by subdivision (c) of Section 84504.3.

(c)

(d) An online platform that disseminates committees’ a major advertiser or committee’s online platform disclosed advertisements shall meet all of the following requirements:

(1) Maintain, and make available for online public inspection in a machine readable format, a record of any advertisement disseminated on the online platform by a major advertiser or committee that purchased five hundred dollars ($500) or more in advertisements on the online platform during the preceding 12 months. Each record shall contain all of the following:

(A) A digital copy of the advertisement.

(B) The approximate number of impressions views generated from the advertisement and the date and time that the advertisement was first displayed and last displayed.

(C) Information regarding the range charged or the total amount spent on the advertisement.

(D) The name of the candidate to which the advertisement refers and the office to which the candidate is seeking election, as applicable, or number or letter of the ballot measure and the jurisdiction to which the advertisement refers.

(E) The name and identification number of the committee that paid for the advertisement. of the advertiser that paid for the advertisement and its identification number, if it is assigned an identification number.

(2) The information required under this subdivision shall be made available as soon as practicable and shall be retained by the online platform for no less than four years.

(3) (A) Display a prominent button, icon, tab, or hyperlink with the text “View Ads” or similar text in one of the following locations: (i) near the top of a profile, landing page, or similar location of a committee an advertiser that paid for an advertisement in a position that the average viewer will readily see it upon viewing that page; (ii) on a page that displays the committee’s advertiser’s profile information or biographical information; (iii) or on a page on which the average viewer would normally navigate to view additional information about a committee. an advertiser.

(B) The button, icon, tab, or hyperlink shall link to a page clearly showing all of the advertisement records required by paragraph (1).

(d)

(e) An online platform that creates a mechanism for a committee an advertiser requesting dissemination of an online platform disclosed advertisement to expressly notify the online platform whether the advertisement is an advertisement as defined in Section 84501 and to provide all information necessary for the online platform to comply with the requirements of this section may rely in good faith on the information provided by the committee advertiser to the online platform to satisfy the online platform’s obligations under subdivisions (b) and (c). (c) and (d).

(e)For purposes of this article, the following terms have the following meanings:

(1)“Online platform” means a public-facing Internet Web site, web application, or digital application, including a social network, ad network, or search engine, that sells advertisements directly to advertisers. A public-facing Internet Web site, web application, or digital application is not an online platform for purposes of this article to the extent that it displays advertisements that are sold directly to advertisers through another online platform.

(2)“Online platform disclosed advertisement” means an electronic media advertisement on an online platform that is not any of the following:

(A)A graphic, image, animated graphic, or animated image that the online platform hosting the advertisement allows to hyperlink to an Internet Web site.

(B)A video, audio, or email.

SEC. 15.SEC. 17.

 Section 84506.5 of the Government Code is amended to read:

84506.5.

 An advertisement supporting or opposing a candidate that is paid for by an independent expenditure or an electioneering communication that is not paid for by a candidate shall include a statement that it was not authorized by a candidate or a committee controlled by a candidate. If the advertisement was authorized or paid for by a candidate for another office, the expenditure shall instead include a statement that “This advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office.”

SEC. 18.

 Section 86116.6 is added to the Government Code, to read:

86116.6.

 (a) A person who is a major advertiser pursuant to subdivision (e) of Section 84501, and who is required to file reports pursuant to Sections 86115 and 86116, shall also report to the Secretary of State each expenditure of one thousand dollars ($1,000) or more made for issue advocacy advertisements, as defined by subdivision (d) of Section 84501, within 72 hours of making the expenditure.

(b) For each expenditure covered by paragraph (a), the person shall report the following information:

(1) The date and amount of the expenditure.

(2) The name and address of the payee.

(3) The legislative or administrative action the person was attempting to influence with the payment and whether the advertisement the expenditure paid for was in support of or in opposition to the action.

(c) When a person who is required to file reports pursuant to Sections 86115 and 86116 becomes a major advertiser pursuant to subdivision (e) of Section 84501, the person shall report to the Secretary of State within 72 hours each unreported expenditure covered by paragraph (a) made during the calendar year.

SEC. 16.SEC. 19.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 17.SEC. 20.

 The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.