Bill Text: CA SB746 | 2021-2022 | Regular Session | Chaptered
Bill Title: Political Reform Act of 1974: business entities: online advocacy and advertisements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-09-30 - Chaptered by Secretary of State. Chapter 876, Statutes of 2022. [SB746 Detail]
Download: California-2021-SB746-Chaptered.html
Senate Bill
No. 746
CHAPTER 876
An act to add Section 84512 to the Government Code, relating to the Political Reform Act of 1974.
[
Approved by
Governor
September 30, 2022.
Filed with
Secretary of State
September 30, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 746, Skinner.
Political Reform Act of 1974: business entities: online advocacy and advertisements.
Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing and related matters, including by prohibiting, limiting, or requiring disclosure of certain political activities and by regulating certain political advertisements.
This bill, beginning on January 1, 2024, would require a business entity to submit a report to the Secretary of State following any calendar year in which the business entity used its products or services to alter its online search results to emphasize or deemphasize materials containing express advocacy, or to target online advertisements to individuals
or groups, or generally to users or members of the public, for political purposes and without full and adequate consideration. The bill would require the report to contain certain information relating to the search results and advertisements, as specified. The bill would require reports to be filed on paper or by email with the Secretary of State, and to be made publicly available in a conspicuous location on the Secretary of State’s website. These provisions would not apply to a business entity’s use of its products or services exclusively to carry out its commercial activities, including delivering user-generated content or a paid advertisement on behalf of another person, or to communications that are internal to a business entity or entities.
Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties. By expanding the scope of an existing crime, 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: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 84512 is added to the Government Code, to read:84512.
(a) (1) A business entity shall submit a report to the Secretary of State following any calendar year in which the business entity does either of the following:(A) Uses its products or services to alter the online search results its products or services generate in order to emphasize or deemphasize materials containing express advocacy, as that term is defined in paragraph (2) of subdivision (c) of Section 82025.
(B) Uses its products or services to target online advertisements to individuals or groups, or generally to users or members of the public, without full and adequate consideration and for political purposes, as that term is described in paragraph (1) of subdivision (b) of Section 82025.
(2) The report shall contain information including, but not limited to, all of the following:
(A) The name of each candidate or measure with regard to which the search results were altered as described in subparagraph (A) of paragraph (1) or that was the subject of an advertisement targeted as described in subparagraph (B) of paragraph (1).
(B) For each candidate or measure,
whether the search results or advertisements were to support or oppose the nomination or election of the candidate or the qualification or passage of the measure.
(C) The full name, title, and business street address and telephone number of each person with final decision making authority as to which candidates or measures will be supported or opposed by the business entity’s search results or advertisements.
(D) The date or range of dates in which the activity described in subparagraph (A) or (B) of paragraph (1) occurred.
(3) A report shall be filed by January 31 for activity occurring during the previous calendar year.
(4) The report shall be filed on paper or by email with the Secretary of State and shall be made publicly available in a conspicuous location on the Secretary of State’s website.
(5) The report required by this section may be included in an online filing and disclosure system developed in accordance
with subdivision (b) of Section 84602 if the Secretary of State, pursuant to paragraph (7) of that subdivision, certifies that the system is able to incorporate filing of the report.
(b) A business entity subject to this section shall maintain detailed accounts and records necessary to prepare the report required pursuant to subdivision (a), and shall retain those detailed accounts and records for a period of four years following the date that the report is filed.
(c) This section does not apply to either of the following activities:
(1) A business
entity’s use of its products or services exclusively to carry out its commercial activities, including, but not limited to, delivering user-generated content or a paid advertisement on behalf of another person.
(2) Communications that are internal to a business entity or entities.
(d) This section is not intended to expand or limit the definition of contribution or expenditure under this title.
(e) This section shall become operative on January 1, 2024.
