Bill Text: CA AB700 | 2015-2016 | Regular Session | Amended
Bill Title: Political Reform Act of 1974: campaign disclosures.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2016-08-31 - Read third time. Refused passage. (Ayes 26. Noes 11. Page 5601.). [AB700 Detail]
Download: California-2015-AB700-Amended.html
BILL NUMBER: AB 700 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 17, 2016
AMENDED IN SENATE JUNE 30, 2016
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN ASSEMBLY JANUARY 14, 2016
AMENDED IN ASSEMBLY JANUARY 12, 2016
AMENDED IN ASSEMBLY JANUARY 7, 2016
AMENDED IN ASSEMBLY MAY 21, 2015
AMENDED IN ASSEMBLY APRIL 14, 2015
INTRODUCED BY Assembly Members Gomez and Levine
FEBRUARY 25, 2015
An act to amend Sections 82025, 84305, 84310, 84501,
84505, 84506.5, 84511, and 85704 of, to add Sections 84504.1,
84504.2, and 84504.3 to, to repeal Sections 84506, 84507, and 84508
of, and to repeal and add Sections 84502, 84503, 84504, and 84509 of,
the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 700, as amended, Gomez. Political Reform Act of 1974: campaign
disclosures.
(1) Existing law, the Political Reform Act of 1974, provides for
the comprehensive regulation of campaign financing and activities.
The act requires a committee that supports or opposes ballot measures
to name and identify itself using a name or phrase the
that clearly identifies the economic or other
special interests of its major donors of $50,000 or more. The act
also requires that if the major donors share a common employer, the
identity of the employer be disclosed.
This bill would repeal these provisions.
(2) The act defines "expenditure" as 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.
This bill would describe circumstances in which a payment would be
made for political purposes within the meaning of the definition of
"expenditure."
(2)
(3) The act prohibits a candidate, committee, or slate
mailer organization from expending campaign funds to pay for
specified telephone calls that advocate support of, or opposition to,
a candidate, ballot measure, or both, unless the name of the
organization that authorized or paid for the call is disclosed to the
recipient of the call during the course of each call.
This bill would instead make these requirements applicable to a
candidate, a candidate controlled committee,
committee established for an elective office for the controlling
candidate, a political party committee, and a slate mailer
organization that expends campaign funds to pay for such telephone
calls.
(3)
(4) The act also requires advertisements, as defined,
to include prescribed disclosure statements, including, among others,
a requirement that the disclosure statements include the names of
the persons who made the 2 highest cumulative contributions, as
defined, to the committee paying for the advertisement.
This bill would repeal and recast provisions of the act relating
to advertisement disclosure statements. Among those changes, this
bill would revise the definition of "advertisement" to exclude a
number of communications, including communications paid for by a
political party committee or person who is not a
committee, committee and communications
that involve wearing apparel, sky writing, and certain electronic
media communications, as specified. The bill would prohibit
specified entities from sending a mass electronic mailing, as
defined, unless the name of the candidate or committee are shown in
the electronic mailing preceded by the words "Paid for by" in at
least the same size font as a majority of the text in the mass
electronic mailing. The bill would also replace existing
advertisement disclosure statements with newly prescribed disclosure
statements that identify the name of the committee paying for the
advertisement and the top contributors to the committee paying for
the advertisement. The bill would define "top contributors" for
purposes of these provisions as the persons from whom the committee
paying for the advertisement received its 3 highest cumulative
contributions, as specified. The bill would exempt certain
committees, including committees that make independent expenditures
totaling $1,000 or more in a calendar year, from the requirement to
disclose the top contributors in advertisement disclosure statements.
The bill would also prescribe location and format criteria for the
disclosure statements that are specific to radio and telephone,
television and video, print, and electronic media advertisements.
(4)
(5) The act prohibits a person from making a
contribution as an intermediary on behalf of another person without
disclosing to the recipient of the contribution specified information
about both the intermediary and the source of the contribution. The
act also prohibits a person from making a contribution to a committee
on the condition or with the agreement that it will be contributed
to a particular candidate unless the contribution is disclosed in
compliance with those requirements for contributions made by an
intermediary.
This bill would revise the latter provision to prohibit a person
from making a contribution to a committee or candidate that is
earmarked for a contribution to another committee , ballot
measure, or candidate, unless the contribution is disclosed in
compliance with the requirements for contributions made by an
intermediary. The bill would also describe circumstances in which a
contribution is deemed to be earmarked.
(5)
(6) 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.
(6)
(7) 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 and compliance with
specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares both
of the following:
(a) For voters to make an informed choice in the political
marketplace, political advertisements should not intentionally
deceive voters about the identity of who or what interest is trying
to persuade them how to vote.
(b) Disclosing who or what interest paid for a political
advertisement will help voters be able to better evaluate the
arguments to which they are being subjected during political
campaigns and therefore make more informed voting decisions.
SEC. 2. 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 his or her 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 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) 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 his or
her 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
his or her name, makes unambiguous reference to his or her office or
status as a candidate, or unambiguously describes him or her 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 susceptible of no reasonable interpretation other than as an
appeal to vote for or against a specific candidate or measure. A
communication is susceptible of no 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 non-exhaustive examples, referring to candidates
or measures on the ballot in an upcoming election, illustrate
statements that in most contexts would be susceptible of no
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 change to save California"; "Joe Green will earn your trust";
"Bob Boone is an unqualified for office and a special-interest puppet"
; "Shirley Hall - bad for California, bad for you."
(C) The following non-exhaustive 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: "Assemblymember 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 whether 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 whether, on balance, the
communication is susceptible of no 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 Web site, 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 Division 6 of Title 2 of
the California Code of Regulations.
(d) A payment used to make contributions, as defined in Section
82015, is an expenditure.
SECTION 1. SEC. 3. Section 84305 of
the Government Code is amended to read:
84305. (a) Except as provided in subdivision (b), a candidate,
candidate controlled committee, committee
established for an elective office for the controlling candidate,
or political party committee shall not send a mass mailing
unless the name, street address, and city of the candidate or
committee are shown on the outside of each piece of mail in the mass
mailing and on at least one of the inserts included within each piece
of mail of the mailing in no less than 6-point type that is in a
color or print that contrasts with the background so as to be easily
legible. A post office box may be stated in lieu of a street address
if the candidate's, controlled committee's, or political party
committee's address is a matter of public record with the Secretary
of State.
(b) A candidate, candidate controlled committee established for an
elective office for the controlling candidate, or political party
committee shall not send a mass electronic mailing unless the name of
the candidate or committee are shown in the electronic mailing
preceded by the words "Paid for by" in at least the same size font as
a majority of the text in the electronic mailing.
(b)
(c) If the sender of the mass mailing or mass
electronic mailing is a single candidate or committee, the
name, street address, and city of the candidate or committee need
only be shown on the outside of each piece of mail.
mail or in the electronic mail itself.
(c)
(d) If the sender of a mass mailing is a controlled
committee, the name of the person controlling the committee shall be
included in addition to the information required by subdivision (a).
(d) For purposes of this section, the sender is the candidate or
committee who pays for the largest portion of expenditures
attributable to the designing, printing, and posting of the mailing
which are reportable under Sections 84200 to 84217, inclusive.
(e) For purposes of this section, to pay for a share of the cost
of a mass mailing means to make, to promise to make, or to incur an
obligation to make, any payment for either of the following:
(1) To any person for the design, printing, postage, materials or
other costs, including salaries, fees, or commissions, of the
mailing.
(2) As a fee or other consideration for an endorsement or, in the
case of a ballot measure, support or opposition in the mailing.
(e) For purposes of this section, the following terms have the
following meaning:
(1) A "mass electronic mailing" has been made when more than two
hundred substantially similar pieces of electronic mail have been
sent within a calendar month.
(2) The "sender" is the candidate, candidate controlled committee
established for an elective office for the controlling candidate, or
political party committee who pays for the largest portion of
expenditures attributable to the designing, printing, and posting of
the mailing which are reportable pursuant to Sections 84200 to 84217,
inclusive.
(3) To "pay for" a share of the cost of a mass mailing means to
make, to promise to make, or to incur an obligation to make, any
payment: (A) to any person for the design, printing, postage,
materials, or other costs of the mailing, including salaries, fees,
or commissions, or (B) as a fee or other consideration for an
endorsement or, in the case of a ballot measure, support or
opposition, in the mailing.
SEC. 2. SEC. 4. Section 84310 of the
Government Code is amended to read:
84310. (a) A candidate, candidate controlled committee,
committee established for an elective
office for the controlling candidate, political party
committee, or slate mailer organization shall not expend campaign
funds, directly or indirectly, to pay for telephone calls that are
similar in nature and aggregate 500 or more in number, made by an
individual, or individuals, or by electronic means and that advocate
support of, or opposition to, a candidate, ballot measure, or both,
unless during the course of each call the name of the candidate,
candidate controlled committee, committee
established for an elective office for the controlling candidate,
political party committee, or slate mailer organization that
authorized or paid for the call is disclosed to the recipient of the
call. Unless the organization that authorized the call and in whose
name it is placed has filing obligations under this title, and the
name announced in the call either is the full name by which the
organization or individual is identified in any statement or report
required to be filed under this title or is the name by which the
organization or individual is commonly known, the candidate,
candidate controlled committee established for an elective office for
the controlling candidate, political party committee, or slate
mailer organization that paid for the call shall be disclosed. This
section shall not apply to telephone calls made by the candidate, the
campaign manager, or individuals who are volunteers.
(b) Campaign and ballot measure committees are prohibited from
contracting with any phone bank vendor that does not disclose the
information required to be disclosed by subdivision (a).
(c) A candidate, committee, or slate mailer organization that pays
for telephone calls as described in subdivision (a) shall maintain a
record of the script of the call for the period of time set forth in
Section 84104. If any of the calls qualifying under subdivision (a)
were recorded messages, a copy of the recording shall be maintained
for that period.
SEC. 3. SEC. 5. Section 84501 of the
Government Code is amended to read:
84501. For purposes of this article the following terms have the
following meanings:
(a) (1) "Advertisement" means any general or public communication
which 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.
(2) "Advertisement" does not include any of the following:
(A) A communication paid for by a political party committee or a
candidate controlled committee established for an elective office for
the controlling candidate.
(B) A communication from an organization, other than a political
party, to its members.
(C) 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
disclosures required by this article cannot be conveniently printed
or displayed.
(D) Wearing apparel.
(E) Sky writing.
(F) An electronic media communication if
where inclusion of the disclosures required by Section 84502,
84503, or 84506.5, is impracticable or would substantively
severely interfere with the committee's ability
to convey the intended message because of the nature of the
technology used to make the communication.
(G) Any other communication as determined by regulations of the
Commission.
(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) (1) "Top contributors" 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.
(2) If two or more contributors of identical amounts qualify as
top contributors, the most recent contributor of that amount shall be
listed as the top contributor in any disclosure required by Section
84503.
(3) If a contributor appears to qualify as a top contributor but
received earmarked funds to make the contribution, the person or
committee that earmarked the funds and gave those funds to the
contributor shall instead be disclosed as the top
contributor if they qualify as such. contributor.
The person or committee transferring earmarked funds shall
disclose the true source of the funds to the committee receiving the
earmarked funds at the time the funds are transferred, and the
committee receiving those funds may reasonably rely upon that
disclosure for purposes of complying with Section 84503. Funds are
"earmarked" in the following circumstances:
(A) The contributor solicited and received the funds from donors
for the express purpose of making a contribution to the
committee paying for the advertisement.
(B) The funds were given to the contributor subject to a
condition, agreement, or understanding an express
condition or agreement with the donor that all or a portion
would be used to make a contribution to the committee paying for the
advertisement, including any circumstance where the donor
identifies the committee as a potential recipient of the contribution
and the committee in fact receives all or a portion of the donor's
contribution. advertisement.
(C) The contributor had existing funds from a donor and a
subsequent agreement or understanding was reached
with the donor that all or a portion of the funds would be used to
contribute to the committee paying for the advertisement,
including any circumstance where the donor identifies the committee
as a potential recipient of the contribution and the committee in
fact receives all or a portion of the donor's contribution.
advertisement.
SEC. 4. SEC. 6. Section 84502 of the
Government Code is repealed.
SEC. 5. SEC. 7. Section 84502 is
added to the Government Code, to read:
84502. (a) Any advertisement paid for by a committee pursuant to
subdivision (a) of Section 82013 shall include the words "Paid for by"
followed by, in all capital letters, by
the name of the committee as it appears on the most recent
Statement of Organization filed pursuant to Section 84101.
(b) Any advertisement paid for by a committee pursuant to
subdivision (b) or (c) of Section 82013 shall include the words "Paid
for by" followed by, in all capital letters,
by the name that the filer is required to use on
campaign statements pursuant to subdivision (o) of Section 84211.
SEC. 6. SEC. 8. Section 84503 of the
Government Code is repealed.
SEC. 7. SEC. 9. Section 84503 is
added to the Government Code, to read:
84503. (a) Any advertisement paid for by a committee pursuant to
subdivision (a) of Section 82013 shall include the words "This
committee has major funding from" followed by the names of the top
contributors to the committee paying for the advertisement. If fewer
than three contributors 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
contributors, this disclosure is not required. If the
content of the radio advertisement or telephonic message names each
of the top contributors as major funding sources of the committee,
this disclosure is not required.
(b) The disclosure of a top contributor 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.
(c) If this article requires the disclosure of the name of a top
contributor 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.
(d) This section does not apply to a committee as defined by
subdivision (b) or (c) of Section 82013 or a political party
committee. 82013.
SEC. 8. SEC. 10. Section 84504 of
the Government Code is repealed.
SEC. 9. SEC. 11. Section 84504 is
added to the Government Code, to read:
84504. (a) An advertisement 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 contributors" in
paragraph (1) of subdivision (c) of Section 84501, radio and
prerecorded telephonic advertisements shall be required to disclose
only the single top contributor top two
contributors of fifty thousand dollars ($50,000) or
more. 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 contributor of $50,000 or
more shall be disclosed.
SEC. 10. SEC. 12. Section 84504.1 is
added to the Government Code, to read:
84504.1. (a) An advertisement 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 thirty
seconds or less or for at least ten seconds of a broadcast that lasts
longer than thirty 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
screen, or bottom one-fourth of the screen if the committee
does not have or is otherwise not
required to list top contributors, and shall be in a
contrasting color in Arial equivalent type, and the type size for the
tallest smallest letters in the
written disclosure shall be exactly 4 percent of
the height of the television or video display screen. The top
contributors, if any, shall each be disclosed on a separate
horizontal line, in descending order, beginning with the top
contributor who made the largest cumulative contributions on the
first line. The name of each of the top contributors shall be
centered horizontally. The written disclosures required by
Sections 84502 and 84503 shall be underlined, except for
the names of the top contributors, if any.
(2) A committee that is not subject to Section 84506.5 and
that is subject to Section 84223 shall include the text
"Funding Details At insert Commission Internet Web site
with information required to be posted by subdivision (c) of Section
84223]." site ] . "
The text shall be in contrasting color to the background
color required in paragraph (1) in Arial equivalent type and
the type size shall be equivalent to at least 2.5 percent of the
height of the television or video display screen.
(3) If using a type size of 4 percent of the height of the
television or video display screen causes the name of any of the top
contributors to exceed the width of the screen or causes the
disclosures to exceed one-third of the television or video display
screen, the type size of the name of the top contributor shall be
reduced until the top contributor's name fits on the width of the
screen or the entire disclosure fits within one-third of the
television or video display screen, but in no case shall the type
size be smaller than 2.5 percent of the height 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.
SEC. 11. SEC. 13. Section 84504.2 is
added to the Government Code, to read:
84504.2. (a) A print advertisement 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.
(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 contributors, if any, shall each be disclosed on a
separate horizontal line, in descending order, beginning with the top
contributor who made the largest cumulative contributions on the
first line. The name of each of the top contributors shall be
centered horizontally in the disclosure area.
(4) Immediately below the text described in paragraph (3),
committees subject to Section 84223 shall include the text "Funding
Details At insert Commission Internet Web site with
information required to be posted by subdivision (c) of Section
84223]." site ] . "
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.
(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 type size 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 person. viewer. The text
may be adjusted so it does not appear on separate horizontal lines,
with the top contributors separated by a comma.
(c) Notwithstanding the definition of "top contributors" in
paragraph (1) of subdivision (c) 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
contributor of fifty thousand dollars ($50,000) or more.
SEC. 12. SEC. 14. Section 84504.3 is
added to the Government Code, to read:
84504.3. (a) An electronic media advertisement shall do all of
the following:
(1) Contain the disclosures required by Sections 84502, 84503, and
84506.5 in a type size and font that is clear and conspicuous,
visible for a period of at least four seconds and contrasts with the
background so as to be easily readable by the average person, unless
impractical or would substantively interfere with a committee's
ability to convey the intended message because of the nature of the
technology used to make the communication. The Commission may
prescribe by regulation minimal disclaimer requirements if inclusion
of the full disclaimer is deemed impractical.
(2) Hyperlink to an Internet Web site containing the text required
by paragraph (1).
84504.3. (a) An electronic media advertisement,
other than an Internet Web site, 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 to the average viewer.
(2) Such text shall be a hyperlink to an Internet Web site
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 Web site
containing the disclosures required by Sections 84502, 84503, and
84506.5.
(c) Notwithstanding subdivisions (a) and (b), an Internet Web site
shall include the disclosures required by Sections 84502, 84503, and
84506.5 in a contrasting color and in no less than 8 point font.
(b)
(d) An Internet Web site that is hyperlinked to 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.
(c)
(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.
(d)
(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
disclaimer required by subdivision (a) on the committee's
home page, landing page, 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.
(e)
(g) The disclaimer required by this section does not
apply to advertisements made via social media where 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. 15. Section 84505 of
the Government Code is amended to read:
84505. (a) In addition to the requirements of Sections 84502,
84503, and 84506.5, the committee placing the advertisement or
persons acting in concert with that committee shall be prohibited
from creating or using a noncandidate-controlled committee or a
nonsponsored committee to avoid, or that results in the avoidance of,
the disclosure of any individual, industry, business entity,
controlled committee, or sponsored committee as a top contributor.
(b) Written disclosures required by Sections 84503 and 84506.5
shall not appear in all capital letters provided, however, capital
letters shall be permitted for the beginning of a sentence, the
beginning of a proper name or location, or as otherwise required by
conventions of the English language.
SEC. 14. SEC. 16. Section 84506 of
the Government Code is repealed.
SEC. 15. SEC. 17. Section 84506.5 of
the Government Code is amended to read:
84506.5. (a) An
advertisement supporting or opposing a candidate that is paid for by
an independent expenditure must include the following
statement in 14-point font: This 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. office.
"
(b) A mailed advertisement subject to this section shall also
comply with each of the following:
(1) The disclosure statement in subdivision (a) shall be located
within one quarter of an inch of the recipient's name and address as
printed on the advertisement.
(2) The text of the disclosure statement shall be contained in a
box with an outline that has a line weight of at least 3.25 pt. The
background color of the box shall be in a contrasting color to the
background of the advertisement. The outline of the box shall be in a
contrasting color to both the background color of the advertisement
and the background color of the box. The color of the text shall be
in a contrasting color to the background color of the box.
SEC. 16. SEC. 18. Section 84507 of
the Government Code is repealed.
SEC. 17. SEC. 19. Section 84508 of
the Government Code is repealed.
SEC. 18. SEC. 20. Section 84509 of
the Government Code is repealed.
SEC. 19. SEC. 21. Section 84509 is
added to the Government Code, to read:
84509. If the order of top contributors required to be disclosed
pursuant to this article changes or a new contributor qualifies as a
top contributor, the disclosure in the advertisement shall be updated
as follows:
(a) A television, radio, telephone, electronic billboard, or other
electronic media advertisement shall be updated to reflect the new
top contributors within seven business days, or five
business days if the change in top contributors occurs within 30 days
of an election. five b usiness days. A
committee shall be deemed to have complied with this
paragraph if the amended advertisement is delivered, containing a
request that the advertisement immediately be replaced, to all
affected broadcast stations or other location where the advertisement
is placed no later than the fifth business day.
(b) A print media advertisement, including nonelectronic
billboards, shall be updated to reflect the new top contributors
before placing a new or modified order for additional printing of the
advertisement.
SEC. 20. SEC. 22. Section 84511 of
the Government Code is amended to read:
84511. (a) This section applies to a committee that does either
of the following:
(1) Makes an expenditure of five thousand dollars ($5,000) or more
to an individual for his or her appearance in an advertisement that
supports or opposes the qualification, passage, or defeat of a ballot
measure.
(2) Makes an expenditure of any amount to an individual for his or
her appearance in an advertisement that supports or opposes the
qualification, passage, or defeat of a ballot measure and that states
or suggests that the individual is a member of an occupation that
requires licensure, certification, or other specialized, documented
training as a prerequisite to engage in that occupation.
(b) A committee described in subdivision (a) shall file, within 10
days of the expenditure, a report that includes all of the
following:
(1) An identification of the measure that is the subject of the
advertisement.
(2) The date of the expenditure.
(3) The amount of the expenditure.
(4) The name of the recipient of the expenditure.
(5) For a committee described in paragraph (2) of subdivision (a),
the occupation of the recipient of the expenditure.
(c) An advertisement paid for by a committee described in
paragraph (1) of subdivision (a) shall include a disclosure statement
stating "(spokesperson's name) is being paid by this campaign or its
donors" in highly visible font shown continuously if the
advertisement consists of printed or televised material, or spoken in
a clearly audible format if the advertisement is a radio broadcast
or telephonic message. If the advertisement is a television or video
advertisement, the statement shall be shown continuously, except when
the disclosure statement required by Section 84504.1 is being shown.
(d) (1) An advertisement paid for by a committee described in
paragraph (2) of subdivision (a) shall include a disclosure statement
stating "Persons portraying members of an occupation in this
advertisement are compensated spokespersons not necessarily employed
in those occupations" in highly visible font shown continuously if
the advertisement consists of printed or televised material, or
spoken in a clearly audible format if the advertisement is a radio
broadcast or telephonic message.
(2) A committee may omit the disclosure statement required by this
subdivision if all of the following are satisfied with respect to
each individual identified in the report filed pursuant to
subdivision (b) for that advertisement:
(A) The occupation identified in the report is substantially
similar to the occupation portrayed in the advertisement.
(B) The committee maintains credible documentation of the
appropriate license, certification, or other training as evidence
that the individual may engage in the occupation identified in the
report and portrayed in the advertisement and makes that
documentation immediately available to the Commission upon request.
SEC. 21. SEC. 23. Section 85704 of
the Government Code is amended to read:
85704. (a) A person shall not make any contribution to any
committee or candidate that is earmarked for a contribution to any
other committee particular committee, ballot
measure, or candidate unless the contribution is fully
disclosed pursuant to Section 84302.
(b) For purposes of subdivision (a) of this
section a contribution is earmarked if the contribution is made under
any of the following circumstances:
(1) The committee or candidate receiving the contribution
solicited the contribution for the purpose of making a contribution
to another committee or candidate and requested the
contributor to consent to such use. specifically
identified committee, ballot measure, or candida te,
requested the contributor to expressly consent to such use, and the
contributor consents to such use.
(2) The contribution was made subject to a condition,
agreement, or understanding condition or agreement
with the contributor that all or a portion of the contribution
would be used to make a contribution to another committee or
candidate, including any circumstance in which the contributor
identifies the committee or candidate as a potential recipient of the
contribution and the committee or candidate in fact receives all or
a portion of the contributor's contribution.
specifically identified committee, ballot measure, or candidate.
(3) After the contribution was made, the contributor and the
committee or candidate receiving the contribution reaching
reached a subsequent agreement or
understanding that all or a portion of the contribution
would be used to make a contribution to another committee or
candidate, including any circumstance in which the contributor
identifies the committee or candidate as a potential recipient of the
contribution and the committee or candidate in fact receives all or
a portion of the contributor's contribution.
specifically identified committee, ballot measure, or candidate.
(c) Notwithstanding subdivision (a) and (b), dues, assessments,
fees, and similar payments made to a membership organization in an
amount less than that specified in subdivision (a) of Section 85303
per calendar year from a single source for the purpose of making
contributions or expenditures shall not be considered earmarked.
(d) A violation of this section shall not be based solely on the
timing of contributions made or received.
SEC. 22. SEC. 24. 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. 23. SEC. 25. 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.
