BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 36|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 36
Author: Florez (D)
Amended: 5/4/05
Vote: 27 - Urgency
SENATE ELECTIONS, REAP. & CONST. AMEND. COM. : 4-2, 4/27/05
AYES: Bowen, Dunn, Murray, Romero
NOES: Battin, Poochigian
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 26-13, 6/2/05 (Failed passage -
reconsideration granted)
AYES: Alarcon, Alquist, Bowen, Cedillo, Chesbro, Ducheny,
Dunn, Escutia, Figueroa, Florez, Kehoe, Kuehl, Lowenthal,
Machado, McClintock, Migden, Murray, Ortiz, Perata,
Romero, Scott, Simitian, Soto, Speier, Torlakson, Vincent
NOES: Aanestad, Ackerman, Ashburn, Battin, Campbell, Cox,
Denham, Dutton, Hollingsworth, Maldonado, Margett,
Poochigian, Runner
NO VOTE RECORDED: Morrow
SUBJECT : Political Reform Act of 1974: disclosure
SOURCE : Author
DIGEST : This bill requires disclosure by a person who
pays or promises to pay for a communication within the
jurisdiction that the candidate is seeking office, and if a
person has received the payment or promise of payment
CONTINUED
SB 36
Page
2
totaling $2,500 or more, for the purpose of making the
communication.
ANALYSIS : Existing law requires a report to be filed
online or electronically with the Secretary of State within
48 hours of making a payment of $50,000 or more for a
communication that is disseminated, broadcast or otherwise
published within 45 days of an election if the
communication clearly identifies a candidate for elective
state office but does not expressly advocate the election
or defeat of that candidate. The report must disclose the
person's name, address, occupation, employer, and amount of
the payment.
This bill additionally requires that:
1.Any person receiving a payment totaling $5,000 or more
for one of these communications must also disclose the
identity of the payer as well as other relevant
information.
2.Any payments received for the purposes of making one of
these communications are limited to $25,000 per calendar
year per contributor if the communication is made at the
behest of the clearly identified candidate.
3.Current Fair Political Practices Commission (FPPC)
regulations further specify these reports are required
only if the communication occurs within 45 days before an
election at which the clearly identified candidate is
actually on the ballot.
This bill requires that a similar report be filed by any
person who pays $50,000 or more for a communication that
clearly identifies a candidate for elective state office,
but does not expressly advocate the election or defeat of
the candidate, and the communication is disseminated,
broadcast, or otherwise published within the jurisdiction
that the candidate is seeking office regardless of when the
communication is made. The report must be filed online or
electronically with the Secretary of State within 48 hours
of making the payment. Any payment totaling $2,500 or more
that person receives for the purpose of making the
communication must also be disclosed.
SB 36
Page
3
This bill further specifies that compliance with its
reporting requirements will constitute compliance with the
similar, existing reporting requirement, thereby clarifying
that no person will have to file separate reports for the
same communication.
For the purposes of this bill, "candidate" means an
individual who is listed on the ballot or who has qualified
to have write-in votes on his or her behalf counted by
election officials, for nomination for or election to any
elective office, or who receives a contribution or makes an
expenditure or gives his or her consent for any other
person to receive a contribution or make an expenditure
with a view to bringing about his or her nomination or
election to any elective office, whether or not the
specific elective office for which he or she will seek
nomination or election is known at the time the
contribution is received or the expenditure is made and
whether or not he or she has announced his or her candidacy
or filed a declaration of candidacy at such time.
"Candidate" also includes any officeholder who is the
subject of a recall election. An individual shall not be
considered a candidate for the purposes of this section the
day after the election at which the individual is either
elected or defeated. "Candidate" does not include any
person within the meaning of the Federal Election Campaign
Act of 1971.
This bill also provides that if any of its provisions are
successfully challenged, any award of attorney's fees,
costs, or both will be paid from the General Fund and the
FPPC's budget shall not be reduced accordingly.
Background
This bill was introduced in response to a television
advertisement campaign broadcast last year in Senator
Florez's district both before and after the General
Election. The following is the script of one of these
advertisements:
"Dean Florez talks like a moderate. But his voting
record in Sacramento tells a different story.
SB 36
Page
4
"Florez says he supports business, but he's voted
against business 89 percent of the time.
"Florez says he supports agriculture, but he's voted
against farmers 90 percent of the time.
"According to the Chamber of Commerce, the bills
Florez voted for will drive thousands of jobs out of
California.
"You decide. Is Dean Florez really a moderate?"
The source of the advertisements was a non-profit
corporation called the Consumer Alliance for a Strong
Economy (CASE) organized under Section 501 (c)(4) of the
United States Internal Revenue Code. Since Senator Florez
was not appearing on the ballot last year, CASE wasn't
required to disclose its contributions pursuant to the
current law.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/25/05)
- - - -
OPPOSITION : (Verified 5/25/05)
Capitol Resource Institute
Consumer Alliance for a Strong Economy
California Association of Nonprofits
ARGUMENTS IN SUPPORT : According to the author's office,
this bill "will help provide sunlight on
politically-oriented organizations who masquerade as
working in the interests of public education by requiring
accountability and disclosure. Specifically, this bill
would require anyone who pays $50,000 or more for a
communication that is disseminated, broadcast, or otherwise
published within 45 days of an election if the
communication clearly identifies a candidate for public
office but does not expressly advocate the election or
SB 36
Page
5
defeat of that candidate."
The author's office contends that the issue of issue
advocacy has been a subject of intense debate on a national
level where politicians, corporations, nonprofit
organizations, and regular everyday people want to know
about people who operate "shadow ad campaigns" that look to
discredit or question a candidate's credentials without
knowing who is behind them. People should have an
opportunity to debate their positions and issues with the
party who is contesting them.
ARGUMENTS IN OPPOSITION : The Capitol Resource Institute
states that, "SB 36 would infringe upon the constitutional
rights of citizens to anonymous political speech. The
identities of persons who donate to policy and special
interest organizations should be kept confidential so their
privacy is respected."
The California Association of Nonprofits states,
"Nonprofits that provide public affairs educational
materials, without any express or implicit intent to
support, promote, attack or oppose a candidate for elective
state office, should not be required to divert their
resources from their charitable purposes in order to comply
with the recordkeeping, reporting and disclosure required
by SB 36."
DLW:nl 6/8/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****