Bill Text: CA SB52 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Political Reform Act of 1974: campaign disclosures.
Spectrum: Partisan Bill (Democrat 21-0)
Status: (Engrossed - Dead) 2014-08-29 - Ordered to inactive file on request of Assembly Member V. Manuel Pérez. [SB52 Detail]
Download: California-2013-SB52-Amended.html
Bill Title: Political Reform Act of 1974: campaign disclosures.
Spectrum: Partisan Bill (Democrat 21-0)
Status: (Engrossed - Dead) 2014-08-29 - Ordered to inactive file on request of Assembly Member V. Manuel Pérez. [SB52 Detail]
Download: California-2013-SB52-Amended.html
BILL NUMBER: SB 52 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 24, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senators Leno and Hill
DECEMBER 20, 2012
An act to amend Sections 84505 and 85310 of, to add Sections
84506.1, 84506.2, 84506.3, and 84506.4 to, to add Article 6
(commencing with Section 84550) to Chapter 4 of Title 9 of,
to repeal Sections 84502, 84503, 84504, and 84506.5
and 84504 of, and to repeal and add Sections
84501, 84506, 84506.5, 84507, 84508, and 84509 of, the
Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 52, as amended, Leno. Political Reform Act of 1974: campaign
disclosures.
Existing law, the Political Reform Act of 1974, provides for the
comprehensive regulation of campaign financing, including requiring
the reporting of campaign contributions and expenditures and imposing
other reporting and recordkeeping requirements on campaign
committees. Existing law additionally imposes disclosure statement
requirements with respect to advertisements supporting or opposing a
candidate or ballot measure paid for by donors making contributions
of specified amounts or by independent expenditures and defines
several terms and phrases for these purposes. Existing law makes a
knowing or willful violation of the Political Reform Act of 1974 a
misdemeanor and subjects offenders to criminal penalties.
This bill would repeal and recast several definitions. The bill
would repeal a committee identification requirement and the
disclosure statement requirements relating to advertisements for or
against any ballot measure paid for by any person whose cumulative
contributions are $50,000 and advertisements paid for by an
independent expenditure. The bill would impose new disclosure
statement requirements for political advertisements that are
radio advertisements, prerecorded telephonic messages,
television or video advertisements, and or
mass mailing or print advertisements that would require the
identification of identifiable contributors, ballot measures, and
other funding details, as specified. The bill would also require a
committee, in prescribed circumstances, to establish and maintain a
campaign disclosure Internet Web site for
each of its campaigns for the purpose of making a
contribution disclosure statement. The bill would require
covered organizations, as defined, that make campaign-related
disbursements or expenditures exceeding a certain amount to comply
with disclosure and accounting requirements. Covered organizations
would be required to keep an accounting of all original contributors
of political purpose funds and to make this accounting available for
audit by the Fair Political Practices Commission. The bill would
provide that, in addition to other remedies, a person who makes a
covered transfer of political purpose funds in violation of specified
requirements is liable in a civil or administrative action brought
by the Fair Political Practices Commission or any person for a fine
up to 3 times the amount of the covered transfer. By
introducing new disclosure requirements, the violation of which would
be a misdemeanor, the bill would create a new crime, thereby
imposing a state-mandated local program.
Existing law requires a person who makes a payment or promise of
payment totaling $50,000 or more for a communication that identifies,
but does not advocate the election or defeat of, a candidate for
elective state office, and that is disseminated within 45 days of an
election, to file a disclosure report with the Secretary of State.
This bill would reduce the payment threshold to $10,000 and change
the communication dissemination period to the period beginning 120
days before the primary or special election and ending on the date of
the general or runoff election.
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 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. This act shall be known as the California Disclose Act.
SEC. 2. Section 84501 of the Government Code is repealed.
SEC. 3. Section 84501 is added to the Government Code, to read:
84501. For purposes of this article, the following terms have the
following meanings:
(a) (1) "Advertisement" means a general or public advertisement
that is authorized and paid for by a person or committee for
the purpose of supporting or opposing a candidate for elective
office or a ballot measure or ballot measures, for an electioneering
communication, or for an issue advocacy advertisement, as defined in
Section 84550. any of the following:
(A) Authorized and paid for by a person or committee for the
purpose of supporting or opposing a candidate for elective office or
a ballot measure or ballot measures.
(B) An electioneering communication.
(C) An issue advocacy advertisement.
(2) "Advertisement" does not include a communication from an
organization other than a political party to its members, a campaign
button smaller than 10 inches in diameter, a bumper sticker smaller
than 60 square inches, or other advertisement as determined by
regulations of the Commission.
(b) "Campaign" means the expenditures and other activities of a
covered organization in support of, or opposition to, or in reference
to a specific ballot measure, candidate, legislative action, or
administrative action, or any combination thereof.
(c) "Campaign disclosure threshold" means ten thousand dollars
($10,000) in the case of a campaign in support of or opposition to a
statewide ballot measure, a state candidate, or issue advocacy, or
two thousand dollars ($2,000) in the case of a campaign in support of
or opposition to a local ballot measure or local candidate.
(d) "Campaign disclosure Internet Web site" means a committee's
Internet Web site for a specific campaign that discloses the top
identifiable contributors to that committee for that campaign, as
described in Section 84506.3.
(e) "Covered organization" has the same meaning as set forth in
subdivision (c) of Section 84550.
(f) "Earmarked original
(b) "Cumulative contributions"
means the cumulative amount of original
contributions from an identifiable contributor that a
covered organization used for a specific campaign or that have been
directed to be used for the campaign but have not yet been expended
received by a committee beginning 18 months prior to
the date the committee made its first expenditure for a political
advertisement or for the purpose of qualifying, supporting, or
opposing a candidate for elective office or a ballot measure .
(g) "Identifiable contributor" means a person whose earmarked
original contributions to a campaign's covered organization meet or
exceed the campaign disclosure threshold. If an original contributor'
s earmarked original contributions do not meet or exceed the campaign
disclosure threshold, the accumulation of those contributions shall
be treated as a single earmarked original contribution to the
original recipient.
(h) "Original contribution" has the same meaning as set forth in
subdivision (h) of Section 84550.
(i) "Original contributor" has the same meaning as set forth in
subdivision (i) of Section 84550.
(c) "Disclosure Internet Web site" means a committee's Internet
Web site for a specific campaign that discloses the top identifiable
contributors to that committee for that campaign, as described in
Section 84506.3.
(d) "Disclosure threshold" means ten thousand dollars ($10,000)
in the case of a campaign regarding a statewide ballot measure or a
state candidate or in the case of a statewide issue advocacy
advertisement, or two thousand dollars ($2,000) in the case of a
campaign regarding a local ballot measure or a local candidate or in
the case of a local issue advocacy advertisement.
(e) "Electioneering communication" means a communication described
in subdivision (a) of Section 85310.
(f) "Identifiable contributor" means a person that is the original
source of contributions received by a committee that cumulatively
meet or exceed the disclosure threshold, notwithstanding the fact
that the contributions were transferred, in whole or in part, through
one or more other committees or persons.
(g) "Issue advocacy advertisement" means an advertisement that
clearly refers to and reflects a view on the subject matter,
description, or name of a pending legislative action, administrative
action, or one or more 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 a pending legislative action and is disseminated,
broadcast, or otherwise communicated within 60 days of the end of the
legislative session.
(3) Refers to one or more ballot measures and is disseminated,
broadcast, or otherwise communicated within 120 days of the election
concerning that measure or measures.
(h) "Political advertisement" means an advertisement, unless it is
paid for by a candidate-controlled committee and is an advertisement
relating to the candidate's own election and not for any other
campaign.
SEC. 4. Section 84502 of the Government Code is repealed.
SEC. 5. Section 84503 of the Government Code is repealed.
SEC. 6. Section 84504 of the Government Code is repealed.
SEC. 7. Section 84505 of the Government Code is amended to read:
84505. In addition to the requirements of Sections 84504, 84506,
84506.1, 84506.2, 84506.3, and 84506.4, 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
major funding source.
SEC. 8. Section 84506 of the Government Code is repealed.
SEC. 9. Section 84506 is added to the Government Code, to read:
84506. (a) A radio advertisement paid for by a
candidate-controlled committee that clearly identifies the candidate
or one or more of the opponents of the candidate shall include an
audio statement in which the candidate identifies himself or herself
and states that the candidate has approved the message.
(b)
84506. (a) (1)
A political advertisement that is a radio
advertisement or prerecorded telephonic message regarding a
campaign shall include a disclosure at the end of the
advertisement read in a clearly spoken manner and in a pitch and tone
substantially similar to the rest of the advertisement that reads as
follows: "Top funders of this ad are state names in descending
order of identifiable contributors who have made the three largest
earmarked original contributions for the campaign]
cumulative contributions ] . Paid for by name
of the committee that paid for the advertisement]."
(2)
(b) If there are fewer than three identifiable
contributors, the disclosure required by paragraph (1)
subdivision (a) shall be adjusted accordingly to
disclose the qualifying identifiable contributors, if any.
(3)
(c) If there are no identifiable contributors or the
committee that paid for the advertisement is the only identifiable
contributor, it may replace the disclosure required by
paragraph (1) subdivision (a) with the
following: "Paid for by name of the committee that paid for the
advertisement]."
(4)
(d) If the advertisement is a prerecorded
telephonic message and names each of the three largest
identifiable contributors of the campaign and
identifies the speaker as speaking on behalf of them, it may replace
the disclosure required by paragraph (1)
subdivision (a) with the following: "Paid for by name of the
committee that paid for the advertisement]."
(5)
(e) The disclosures specified in this
subdivision subdivision (a) shall not be
required if the advertisement is paid for by a
candidate-controlled committee and clearly identifies the candidate
or one or more of the opponents of the candidate or if the committee
has not expended an amount on the campaign that meets or exceeds the
campaign disclosure threshold committee paying for the
political advertisement does not have cumulative contributions that
meet or exceed the disclosure threshold .
SEC. 10. Section 84506.1 is added to the Government Code, to read:
84506.1. (a) A television or video advertisement paid for by a
candidate-controlled committee that clearly identifies the candidate
or one or more of the opponents of the candidate shall include a
statement in which the candidate identifies himself or herself and
states that the candidate has approved the message. The candidate
statement shall be made using an unobscured, full-screen video of the
candidate, alone, making the statement, or by using an unobscured,
full-screen, and clearly identifiable photographic image of the
candidate, alone, that is displayed during an audio voiceover of the
candidate reading the statement.
(b)
84506.1. (a) Except as otherwise
provided by this section, A political advertisement
that is a television or video advertisement regarding
a campaign shall include at the end of the advertisement a disclosure
shall include a disclosure area with a solid black
background on the entire bottom one - third of the
television or video display screen for a minimum of six seconds at
the beginning of the advertisement that includes all of the
following:
(1) A full-screen without audio on a black background for a
minimum of three seconds that is dedicated to the disclosure
described in this section.
(2) If the advertisement identifies one or two ballot measures,
the text "Top Funders of This Ad for "Yes on" followed by the ballot
measure number or letter for any ballot measures it supports or "No
on" followed by the ballot measure number or letter for any ballot
measures it opposes]." If the advertisement does not identify ballot
measures or identifies more than two ballot measures, the text "Top
Funders of This Ad." The text shall be located at the top of the
television or video display screen and centered horizontally, shall
be yellow in color in Arial equivalent font, and the font size shall
be at least 5 percent of the height of the television or video
display screen.
(3) Immediately below the text described in paragraph (2), the
logos, if any, as they appear on the Internet Web site homepage of
the identifiable contributor, for the identifiable contributors who
have made the three largest earmarked original contributions to the
committee that paid for the advertisement. Each logo shall occupy at
least 15 percent of the width or height of the television or video
display screen and the logos shall be displayed from left to right in
descending order beginning with the largest identifiable
contributor.
(4) Immediately below the logos, if any, described in paragraph
(3), or beneath the text described in paragraph (2), if no
identifiable contributor has a logo, the identifiable contributors
who have made the three largest earmarked original contributions to
the committee that paid for the advertisement. The three identifiable
contributors shall each be disclosed on a separate vertical line, in
descending order, beginning with the identifiable contributor who
made the largest earmarked original contribution on the first line.
The name of each of the three identifiable contributors shall be
centered horizontally. The text shall be white in color in Arial
Narrow equivalent font and the font size shall be at least 5 percent
of the height of the television or video display screen.
(5) Immediately below the text described in paragraph (4), the
text "Full Funding Details At insert Internet Web site address of the
campaign disclosure Internet Web site]." The text shall be yellow in
color in Arial Narrow equivalent font and the font size shall be
equivalent to 4 percent of the height of the television or video
display screen.
(6)
(1) The text "Top Funders of This Ad." The text shall be located
at the top of the disclosure area and centered horizontally, shall be
yellow in color in Arial equivalent font, and the font size shall be
at least 4 percent of the height of the television or video display
screen.
(2) Immediately below the text described in paragraph (1), the
names of the identifiable contributors who have made the three
largest cumulative contributions. The identifiable contributors shall
each be disclosed on a separate horizontal line, in descending
order, beginning with the identifiable contributor who made the
largest cumulative contributions on the first line. The name of each
of the identifiable contributors shall be centered horizontally. The
text shall be white in color in Arial Narrow equivalent font and the
font size shall be at least 4 percent of the height of the television
or video display screen.
(3) The text "Funding Details At insert Internet Web site address
of the disclosure Internet Web site]." The text shall be yellow in
color in Arial Narrow equivalent font and the font size shall be
equivalent to 2.5 percent of the height of the television or video
display screen. The text shall be left-aligned and located in a
position that is 2.5 percent of the height of the television or video
display screen away from the bottom left of the television or video
display screen.
(4) The text "Paid for by name of the committee that
paid for the advertisement]." The text shall be yellow in color in
Arial Narrow equivalent font and the font size shall be equivalent to
3 2.5 percent of the height of the
television or video display screen. The text shall be
right-aligned and located in a position that is vertically
3 2.5 percent above the bottom
of the height of the television or video
display screen and centered horizontally away
from the bottom right of the television or video display screen
.
(7)
(5) If there are fewer than three identifiable
contributors, the disclosure required by this subdivision shall be
adjusted accordingly to disclose only those that qualify as
identifiable contributors, if any. If the committee does not have any
identifiable contributors, the disclosure shall be adjusted to
include the name of the committee in place of the names of
identifiable contributors.
(c)
(b) The disclosures described in subdivision
(b) (a) shall not be required if the
advertisement is paid for by a candidate-controlled committee and
clearly identifies the candidate or one or more of the opponents of
the candidate or if the committee paying for the advertisement has
not expended an amount on the campaign that meets or exceeds the
campaign disclosure threshold committee paying for the
political advertisement does not have cumulative contributions that
meet or exceed the disclosure threshold .
SEC. 11. Section 84506.2 is added to the Government Code, to read:
84506.2. (a) Except for slate mailers or as otherwise
provided by this section , a political advertisement
that is a mass mailing or a print advertisement
regarding a campaign and that is 12 square
inches or more in size shall include a disclosure area on the
largest page of the mass mailing or print advertisement that
satisfies all of the following:
(1) The disclosure area shall be set apart from the rest of the
page on which it is located by a line framing the disclosure area in
the shape of a square or rectangle and the line shall be a color that
establishes a contrast with the background color of the remainder of
the disclosure area. The disclosure area within the border line
shall have a solid background color that establishes a contrast to
the color of the disclosure text that is equivalent to or greater
than the text and background color contrast in the other areas of the
mass mailing or print advertisement.
(1) The disclosure area shall have a solid white background so as
to be easily legible, and shall be in a printed or drawn box on the
bottom of the page that is set apart from any other printed matter.
All text in the disclosure area shall be black in color.
(2) The text "Top Funders of This Ad" shall be located at the top
of the disclosure area and centered horizontally in the disclosure
area. The text shall be in an Arial equivalent font with a font size
of at least 14-point 12-point for
pages advertisements smaller than
8.5 inches by 11 inches 93 square inches
and at least 16-point 14-point
for pages advertisements that are equal
to, or larger than, 8.5 inches by 11 93
square inches.
(3) Immediately below the text described in paragraph (2) shall be
printed the logos, if any, as they appear on the Internet Web site
homepage of the identifiable contributor, for the identifiable
contributors who have made the three largest earmarked original
contributions to the committee that paid for the mass mailing or
print advertisement. Each logo shall occupy at least 8 percent of the
width or height of the page on which the disclosure area is located
and the logos shall be displayed from left to right in descending
order beginning with the largest identifiable contributor.
(4) Immediately below the logos, if any, described in paragraph
(3), or beneath the text described in paragraph (2) if no
identifiable contributor has a logo, shall be identified by name the
identifiable contributors who have made the three largest earmarked
original contributions for the campaign that paid for the mass
mailing or print advertisement. The three identifiable contributors
shall each be disclosed on a separate vertical line, in descending
order, beginning with the identifiable contributor who made the
largest earmarked original contributions on the first line. The name
of each of the three identifiable contributors shall be centered
horizontally. The text shall identify each identifiable contributor
in an Arial Narrow equivalent font with a font size of at least
10-point for pages smaller than 8.5 inches by 11 inches and at least
12-point for pages that are equal to, or larger than, 8.5 inches by
11 inches.
(3) Immediately below the text described in paragraph (2) shall be
the names of the identifiable contributors who have made the three
largest cumulative contributions. The identifiable contributors shall
each be disclosed on a separate horizontal line, in descending
order, beginning with the identifiable contributor who made the
largest cumulative contributions on the first line. The name of each
of the identifiable contributors shall be centered horizontally in
the disclosure area. The text shall identify each identifiable
contributor in an Arial Narrow equivalent font with a font size of at
least 10-point for advertisements smaller than 93 square inches and
at least 12-point for advertisements that are equal to, or larger
than, 93 square inches.
(A) If the advertisement is 4 inches tall or less, it need only
show the names of the identifiable contributors who have made the two
largest cumulative contributions.
(B) If the advertisement is 3 inches tall or less, it need only
show the name of the identifiable contributor who made the largest
cumulative contribution, and the text required by paragraph (2) may
say "Top Funder of This Ad."
(5)
(4) Immediately below the text described in paragraph
(4) (3) , the text "Full
Funding "Funding Details At insert
Internet Web site address of the campaign
disclosure Internet Web site]." The text shall be in an Arial Narrow
equivalent font with at least 10-point font size for pages
advertisements smaller than 8.5 inches
by 11 93 square inches and at least 12-point
font size for pages advertisements that
are equal to, or larger than, 8.5 inches by 11
93 square inches. This text shall not be required if
the advertisement is 5 inches tall or less.
(6)
(5) The text "Paid for by name of the committee that
paid for the advertisement]." The text shall be located at the bottom
of the disclosure area and shall be in an Arial Narrow equivalent
font with at least 8-point font size for pages smaller than 8.5
inches and at least 10-point font size for pages that are equal to,
or larger than, 8.5 inches by 11 inches.
(7)
(6) If there are fewer than three identifiable
contributors, the disclosure shall be adjusted accordingly to
disclose the qualifying identifiable contributors, if any. If the
committee does not have any identifiable contributors, the disclosure
shall be adjusted to include the name of the committee in place of
the names of identifiable contributors.
(b) The disclosures described in subdivision (a) shall not be
required if the committee paying for the advertisement is a
candidate-controlled committee that pays for advertisements in
support of the candidate or if the committee paying for the
advertisement has not expended an amount on the campaign that meets
or exceeds the campaign political advertisement does
not have cumulative contributions that meet or exceed the
disclosure threshold.
SEC. 12. Section 84506.3 is added to the Government Code, to read:
84506.3. Except for a A committee
that is controlled by a candidate and that is paying for
has paid for political advertisements
in support of the candidate, a committee and that has
received cumulative contributions that meet or exceed the di
sclosure threshold shall establish and maintain a
separate campaign disclosure Internet Web site
for each of its campaigns for which it has expended an amount that
meets or exceeds the campaign disclosure threshold and for which it
pays for an advertisement described in this article . If
the campaign committee has an Internet
Web site homepage , that Internet Web site may
also serve as the campaign disclosure Internet Web
site. The homepage of the campaign
disclosure Internet Web site and any landing pages that visitors are
directed to on the disclosure Internet Web site and any other
Internet Web sites maintained by the committee shall include a
disclosure statement area for the purpose
of making a contribution disclosure statement that
satisfies all of the following:
(a) The disclosure statement area shall be at
least 250 pixels wide and visible upon landing on the Internet
Web site's homepage . The disclosure statement
area shall have a white background and a border that is
dark in color.
(b) If the campaign involves one or more ballot measures,
the disclosure statement The disclosure area
shall include the text "Top Funders of This Campaign for
"Yes on" followed by the ballot measure number or letter for any
ballot measures it supports or "No on" followed by the ballot measure
number or letter for any ballot measures it opposes]." This text
shall be located Committee" located at the top
of the disclosure statement area and centered
horizontally in the disclosure statement area. The
text shall be black in color in an Arial equivalent font and shall
be at least 10-point font size.
(c) Immediately below the text described in subdivision (b), the
disclosure statement area shall include
a list of the identifiable contributors who have made the 10 largest
earmarked original cumulative
contributions to the committee. Each of the 10
identifiable contributors contributor
shall be disclosed on a separate vertical
horizontal line, in descending order, beginning with the
identifiable contributor who made the largest cumulative
contribution contributions on the first line.
The text shall be black in color in an Arial Narrow equivalent font
and shall be at least 9-point font size.
(d) Immediately below the text described in subdivision
(c), the disclosure statement shall include the logos, if any, as
they appear on the Internet Web site homepage of the identifiable
contributor, for the identifiable contributors who made the 10
largest earmarked original contributions to the committee. Each logo
shall occupy at least 75 horizontal or vertical pixels and shall be
displayed from left to right in descending order beginning with the
largest identifiable contributor.
(e)
(d) (1) The disclosure statement
area shall include a hyperlink to another page on the
campaign disclosure Internet Web site that lists
all of the campaign's committee's
identifiable contributors. The hyperlink shall be labeled "More
funding info" and shall be a standard hyperlink centered at the
bottom of the disclosure area that is displayed as blue underlined
text in Arial-equivalent font in at least 9-point font size.
(2) The hyperlinked page on the committee
disclosure Internet Web site shall have a title that reads "Large
Funders of this Campaign." Committee.
" The linked page shall disclose each identifiable
contributor of the committee on a separate vertical
horizontal line, in descending order, beginning
with the identifiable contributor that had the largest
earmarked original cumulative contribution on
the first line. Each line shall show the name of the identifiable
contributor and the amount of its earmarked original
cumulative contributions, current within three
business days. These disclosures shall be clear and shall
be the only content on the page other than the campaign
disclosure Internet Web site's standard navigation
features.
(f)
(e) If there are fewer than 10 identifiable
contributors, the disclosure statement area
shall be adjusted accordingly to disclose the qualifying
identifiable contributors, if any. If the committee does not have any
identifiable contributors, the disclosure area shall be
adjusted to include the name of the committee in place of the names
of identifiable contributors.
(f) Every page of an Internet Web site maintained by a committee
that has paid for political advertisements and that has cumulative
contributions that meet or exceed the disclosure threshold shall
include the statement "Paid for by name of the committee that paid
for the advertisement]" and any other identifying information
specified by the Commission. The text shall have a solid white
background so as to be easily legible, and shall be in a printed or
drawn box on the bottom of the page that is set apart from any other
printed matter. The text shall be black in color in an Arial Narrow
equivalent font and shall be at least 8-point font size.
SEC. 13. Section 84506.4 is added to the Government Code, to read:
84506.4. The Commission shall promulgate regulations to require
disclosures on all forms of political advertisements not
covered by this article, including, but not limited to, electronic
media advertisements and billboards. If feasible, the regulations
shall require the listing of the name of the committee and as many of
the three identifiable contributors that made the largest
earmarked original cumulative contributions
to the campaign as possible in a conspicuous
manner. This disclosure area shall occupy no more than 10 percent of
the advertisement. If the advertisement medium allows, the disclosure
area shall contain a hyperlink to the campaign
disclosure Internet Web site.
SEC. 14. Section 84506.5 of the Government Code is repealed.
SEC. 14.5. Section 84506.5 is added to the
Government Code , to read:
84506.5. The Commission shall promulgate regulations to require
disclosure of the name of the committee, if feasible, on all
advertisements that are paid for by a candidate-controlled committee
and that are advertisements relating to the candidate's own election
and not for any other campaign.
SEC. 15. Section 84507 of the Government Code is repealed.
SEC. 16. Section 84507 is added to the Government Code, to read:
84507. For purposes of a disclosure required by this article, the
following shall also apply in the event that an identifiable
contributor is a person who is an individual:
(a) If the committee receiving the earmarked original
cumulative contributions is supporting or
opposing a candidate, the disclosure shall include the occupation and
employer of the identifiable contributor in addition to the
contributor's name. If the identifiable contributor is not
employed, no occupation or employer shall be listed.
(b) If the committee receiving the earmarked original
cumulative contributions is supporting or
opposing a ballot measure, and the passage or defeat of the ballot
measure directly benefits the employer of the identifiable
contributor, the disclosure shall include the occupation and employer
of the identifiable contributor in addition to the contributor's
name. However, if an employer of an identifiable contributor
is also an identifiable contributor of that committee, the earmarked
original contributions of the employees shall, instead, be deemed to
be earmarked original contributions by the employer for purposes of
determining the total earmarked original contribution made by the
employer in order to determine which identifiable contributors shall
be disclosed on an advertisement pursuant to this article.
(c) If the committee receiving the earmarked original
contributions is supporting or opposing a ballot measure, and the
passage or defeat of the ballot measure does not directly benefit the
employer of the identifiable contributor, the disclosure shall
include only the name of the identifiable contributor.
(c) If the employer of an identifiable contributor is also an
identifiable contributor of that committee, the cumulative
contributions of its employees shall be deemed to be cumulative
contributions by the employer for purposes of determining which
identifiable contributors shall be disclosed on an advertisement
pursuant to this article. This subdivision does not apply to an
employee whose cumulative contributions amount to more than 75
percent of the cumulative contributions of the employer.
SEC. 17. Section 84508 of the Government Code is repealed.
SEC. 18. Section 84508 is added to the Government Code, to read:
84508. (a) The disclosure of the name of an identifiable
contributor required by this article need not include such legal
terms as "incorporated," "committee," "political action committee,"
or "corporation," or their abbreviations, unless the term is part of
the contributor's name in common usage or parlance. This section does
not prevent a contributor from being disclosed by a name used in
common usage or parlance, including, but not limited to, an
abbreviation or acronym.
(b) If this article requires the disclosure of the name of an
identifiable contributor that is a sponsored committee, the name of
the committee's sponsoring organization shall be disclosed.
(b)
(c) For a disclosure made pursuant to Sections 84506 to
84506.3, inclusive, the committee name listed need not include its
economic or other special interests, nor the names of any major
donors.
SEC. 19. Section 84509 of the Government Code is repealed.
SEC. 20. Section 84509 is added to the Government Code, to read:
84509. If the order of the identifiable contributors required to
be displayed in an advertisement pursuant to this article changes
after a statement is filed pursuant to Section 84554
, the disclosure in the advertisement shall be updated as
follows:
(a) A television, radio, or other electronic media political
advertisement shall be updated to reflect the new ordering of
identifiable contributors within three calendar
seven business days , or five business days if the
change in the order of identifiable contributors occurs within 30
days of an election .
(b) A print media advertisement, including nonelectronic
billboards, shall be updated to reflect the new ordering of
identifiable contributors prior to placing a new or modified order
for additional printing of the advertisement.
SEC. 21. Article 6 (commencing with Section
84550) is added to Chapter 4 of Title 9 of the Government Code, to
read:
Article 6. Expenditures of Organizations
84550. For purposes of this article, the following terms have the
following meanings:
(a) "Campaign" means the expenditures and other activities of a
covered organization in support of, or opposition to, or in reference
to, a specific ballot measure, candidate, legislative action, or
administrative action, or any combination thereof.
(b) "Campaign-related disbursement" means a disbursement of money
by a covered organization for any of the following:
(1) An expenditure in support of, or opposition to, a ballot
measure.
(2) An independent expenditure in support of, or opposition to, a
candidate.
(3) An electioneering communication.
(4) An issue advocacy advertisement.
(5) A covered transfer of political purpose funds.
(c) "Covered organization" means a person, other than an
individual or political party, that can accept contributions,
donations, payments, or any other form of funds, including, but not
limited to, a committee, a nonprofit organization, a business entity,
a labor organization, and a federal or out-of-state political action
committee.
(d) "Covered transfer of political purpose funds" means a transfer
or payment of political purpose funds in an aggregate amount of one
thousand dollars ($1,000) or more in a calendar year by a covered
organization to another covered organization.
(e) "Electioneering communication" means a communication described
in subdivision (a) of Section 85310.
(f) "Issue advocacy advertisement" means an advertisement in a
calendar quarter that is paid for by a person required to file a
statement under subdivision (b) of Section 86115 in the calendar
quarter and that does all of the following:
(1) Clearly refers to the subject matter, description, or name of
pending legislative or administrative action.
(2) Reflects a view on the legislative or administrative action
referred to in paragraph (1).
(3) 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.
(g) "Ordinary business funds" means amounts received by a covered
organization in the ordinary course of any trade or business
conducted by the covered organization, or in the form of investments
in the covered organization.
(h) "Original contribution" means a contribution, donation,
transfer, or payment of dues made by an original contributor to an
original recipient. In the case of an original contributor that is a
covered organization, the original contribution amount is the amount
that is made up entirely of ordinary business funds and
contributions, donations, transfers, or payments of dues amounting to
less than an aggregate of one thousand dollars ($1,000) from each
person.
(i) "Original contributor" means a person that was the original
source of political purpose funds acquired by a covered organization,
notwithstanding the fact that the political purpose funds were
transferred, in whole or in part, through one or more covered
organizations. An original contributor includes any of the following:
(1) An individual, political party, or other person that does not
accept political purpose funds from others and that makes one or more
contributions or payments of political purpose funds to a covered
organization in an aggregate amount of one thousand dollars ($1,000)
or more in a calendar year.
(2) If a covered organization makes a campaign-related
disbursement, any of the following persons or entities whose
political purpose funds were used in that disbursement:
(A) Any original contributor identified in a covered transfer
statement received by the covered organization.
(B) Any original contributor defined in paragraph (1).
(C) The covered organization, if it used ordinary business funds
totaling one thousand dollars ($1,000) or more.
(D) The covered organization, if it used one thousand dollars
($1,000) or more from persons who each made payments or contributions
totaling less than one thousand dollars ($1,000) in a calendar year.
(j) "Original recipient" means the first covered organization to
which an original contribution is made.
(k) "Political purpose funds" means funds made up of any payments,
including contributions, donations, transfers, or payments of dues,
that qualify as contributions or that are made to a covered
organization by a person who does any of the following:
(1) Requests or gives permission for the payment to be used for
campaign-related disbursements.
(2) Makes the payment in response to a solicitation or other
request for funds that are expected to be used for campaign-related
disbursements.
(3) Makes the payment to a covered organization that publicly
declares that any payments may be expected to be used for
campaign-related disbursements unless the person prohibits, in
writing, the use of their funds for campaign-related disbursements.
84551. (a) A covered organization that makes campaign-related
disbursements aggregating more than one thousand dollars ($1,000) in
a calendar year shall only expend political purpose funds for those
disbursements. A covered organization shall not make any
campaign-related disbursements using funds received by a transfer or
payment from another covered organization if that organization has
not provided a transfer of political purpose funds statement pursuant
to Section 84553.
(b) If a covered organization's political purpose funds and
campaign-related disbursements are fully accounted for, no public
disclosure shall be required relating to the identity of the covered
organization's other members and general donors. Any public
disclosure shall be limited to the sources, amounts, expenditures,
and transfers of the covered organization's political purpose funds
and campaign-related disbursements.
84552. (a) A covered organization shall keep an accounting of all
of the original contributors of its political purpose funds. The
accounting shall be available for audit by the Commission and shall
include all of the following information relating to each original
contributor:
(1) The same identifying information required for persons who make
contributions.
(2) The date, amount, and original recipient of each original
contribution that makes up the covered organization's political
purpose funds from the original contributor.
(3) Any amounts of each original contribution that are directed to
be used for specific campaigns.
(4) The dates, amounts, campaigns, and other purposes for which
original contributors' funds were expended or the covered
organizations that they were transferred to, if any.
(b) Records for each original contribution shall be preserved for
at least 48 months after they are recorded as having been expended,
transferred, or used for other purposes.
84553. (a) If a covered organization makes a covered transfer of
political purpose funds, it shall provide a transfer of political
purpose funds statement made under penalty of perjury to both the
Commission and the recipient organization within 24 hours. The
statement shall include the same identifying information for both the
covered organization and the recipient organization as required for
committees, and a statement of what amounts, if any, of the
transferred funds are directed to be used for specific campaigns.
(b) The transfer of political purpose funds statement shall
include an accounting of each original contribution making up the
transfer that includes all of the following:
(1) The same identifying information required for persons who make
contributions.
(2) The contribution's date, amount, and original recipient.
(3) Any portions of the contribution that are directed to be used
for specific campaigns. If the transfer of political purpose funds
statement specifies that the transferred funds are directed to be
used for specific campaigns, then that direction shall be listed,
provided it is consistent with the original direction for the
original contribution's use.
84554. (a) A covered organization that makes expenditures for a
specific campaign in an amount, in the aggregate, equal to or greater
than the applicable campaign disclosure threshold, as defined in
Section 84501, in a calendar year that are not covered transfers of
political purpose funds shall file a statement made under penalty of
perjury with the Secretary of State and the Commission that includes
the same identifying information for the covered organization as
required for committees.
(b) The statement required by subdivision (a) shall include an
accounting of each original contribution that was used for the
covered organization's cumulative expenditures for the campaign, plus
any original contributions that have been directed to be used for
the campaign but have not yet been expended, and shall contain all of
the following information:
(1) The same identifying information required for persons who make
contributions.
(2) The contribution's date, amount, and original recipient.
(3) The date or dates of the original statement or statements on
which it was listed as expended, if any.
(c) The statement described in subdivision (a) shall be amended
within 24 hours from the time at which the aggregated earmarked
original contributions, as defined in Section 84501, for the campaign
increase by an amount that meets or exceeds the campaign disclosure
threshold since the previous statement.
84555. A covered organization that makes campaign-related
disbursements shall be subject to discretionary audits conducted by
the Commission. An audit conducted pursuant to this section shall be
limited to examining the covered organization's campaign-related
disbursements and sources and uses of its political purpose funds. A
covered organization shall keep copies of records detailing a person'
s request or granting of permission to use its funds for
campaign-related disbursements, any written statements persons made
prohibiting the use of their funds for campaign-related
disbursements, its fundraising solicitations, and the transfer of
political purpose funds statements from the covered organizations
that transfer political purpose funds to it. A covered organization
shall make these records available for inspection by the Commission,
if requested, during an audit.
84556. (a) In addition to the remedies provided for in Chapter 11
(commencing with Section 91000), a person who makes a covered
transfer of political purpose funds in violation of this article is
liable in a civil or administrative action brought by the Commission
or any person for a fine up to three times the amount of the covered
transfer of political purpose funds.
(b) The remedies provided for in subdivision (a) shall also apply
to any person who purposely causes any other person to violate any
provision of this article or who aids and abets any other person in a
violation.
(c) If a judgment is entered against the defendant or defendants
in an action brought under this section, the plaintiff shall receive
50 percent of the amount recovered. The remaining 50 percent shall be
deposited in the General Fund of the state. In an action brought by
a local civil prosecutor, 50 percent shall be deposited in the
account of the agency bringing the action and 50 percent shall be
paid to the General Fund of the state.
SEC. 22. SEC. 21. Section 85310 of
the Government Code is amended to read:
85310. (a) A person who makes a payment or a promise of payment
totaling ten thousand dollars ($10,000) or more for a communication
that clearly identifies a candidate for elective office, but does not
expressly advocate the election or defeat of the candidate, and that
is disseminated, broadcast, or otherwise published during the period
beginning 120 days before the primary or special election and ending
on the date of the general or runoff election, shall file online or
electronically with the Secretary of State a report disclosing the
name of the person, address, occupation, and employer, and amount of
the payment. The report shall be filed within 48 hours of making the
payment or the promise to make the payment.
(b) (1) Except as provided in paragraph (2), if a person has
received a payment or a promise of a payment from other persons
totaling five thousand dollars ($5,000) or more for the purpose of
making a communication described in subdivision (a), the person
receiving the payments shall disclose on the report the name,
address, occupation and employer, and date and amount received from
the person.
(2) A person who receives or is promised a payment that is
otherwise reportable under paragraph (1) is not required to report
the payment if the person is in the business of providing goods or
services and receives or is promised the payment for the purpose of
providing those goods or services.
(c) A payment received by a person who makes a communication
described in subdivision (a) is subject to the limits specified in
subdivision (b) of Section 85303 if the communication is made at the
behest of the clearly identified candidate.
SEC. 23. SEC. 22. 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. 24. SEC. 23. 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.
