BILL ANALYSIS Ó AB 510 Page 1 Date of Hearing: January 23, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 510 (Ammiano) - As Amended: January 6, 2014 Policy Committee: ElectionsVote:5-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill amends the Political Reform Act to require reporting and disclosure of political advertisements portraying persons in licensed occupations. Specifically, this bill: 1)Requires a committee providing any compensation to someone for appearing in an advertisement regarding a ballot measure that suggests the person is a member of an occupation requiring licensing or certification to file a report of such expenditure with the Fair Political Practices Commission (FPPC) within 10 days. 2)Requires an advertisement as described in (1) to include the following disclosure statement: "Persons portraying members of an occupation in this advertisement are compensated spokespersons not necessarily employed in those occupations." 3)Authorizes a committee to petition the FPPC for a waiver of the disclosure statement, and requires the commission to grant the waiver if: (a) the occupation in the report is substantially similar to the occupation portrayed in the advertisement and (b) the committee submits credible documentation that the compensated individual may engage in the occupation portrayed in the advertisement. FISCAL EFFECT Ongoing General Fund costs to the FPPC of up to $70,000 for one-half attorney position for regulations, responding to inquiries and potential litigation, and administering waiver requests. AB 510 Page 2 COMMENTS 1)Background . Proposition 34, approved by the voters in November 2000, in part established new reporting and disclaimer requirements for ballot measure advertisements that featured paid spokespeople. Those requirements apply only when a committee makes an expenditure of $5,000 or more to the individual appearing in the advertisement. Additionally, under the PRA, a committee is required to itemize all expenditures of $100 or more on the periodic campaign disclosure reports filed with the FPPC. To the extent that a committee paid a spokesperson $100 or more to appear in an advertisement supporting or opposing a ballot measure, such information is therefore already report on the committee's campaign disclosure statements. 2)Purpose . Under AB 510, the reporting and disclaimer requirements will apply if a person was paid any amount of money, but only if the advertisement suggested or stated that the person is a member of an occupation that requires licensure, certification, or other specialized, documented training as a prerequisite to engage in that occupation. The author argues that these requirements are important to ensure that voters are not mislead into thinking that the opinions of paid spokespersons are those of a licensed professional. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081