BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 510
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          ASSEMBLY THIRD READING
          AB 510 (Ammiano)
          As Amended  January 6, 2014
          2/3 vote 

           ELECTIONS           5-1         APPROPRIATIONS      12-2        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Bonta, Hall, Perea, |Ayes:|Gatto, Bocanegra,         |
          |     |Rodriguez                 |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Donnelly                  |Nays:|Allen, Wagner             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires an advertisement relating to a ballot measure  
          to include a specified disclaimer if it includes an appearance  
          by an individual who is paid to appear in the advertisement and  
          it communicates that the individual is a member of an occupation  
          that requires licensure or specialized training.  Specifically,  
           this bill  :  

          1)Requires a committee that 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, to do  
            both of the following:

             a)   File a report within 10 days of the expenditure  
               identifying the measure, date of the expenditure, name and  
               occupation of the recipient, and amount expended; and,

             b)   Include the following statement in the advertisement in  
               highly visible roman 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 telephone message:








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                 Persons portraying members of an occupation in  
                 this advertisement are compensated spokespersons  
                 not necessarily employed in those occupations.

          2)Permits a committee to apply to the Fair Political Practices  
            Commission (FPPC) for a waiver from the requirement to include  
            the statement detailed above in an advertisement.  Requires  
            the FPPC to grant the waiver if the occupation of the  
            individual who is being paid to appear in the advertisement is  
            substantially similar to the occupation portrayed in the  
            advertisement and the committee submits credible documentation  
            of the license, certification, or other training that permits  
            the individual to engage in the occupation portrayed in the  
            advertisement.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, 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.

           COMMENTS  :  According to the author, "Campaign commercials use  
          the professional status of commercial participants as  
          spokespersons in an attempt to sway the opinion of the voters by  
          giving the viewer the impression that professionals in that  
          field may be better informed than they. These spokespersons, be  
          they doctors, engineers, or other professionals are often  
          compensated by the campaign for their participation in the  
          commercial with the audience left knowing no better."

          In 2000, the Legislature passed and the Governor signed SB 1223  
          (Burton), Chapter 102, Statutes of 2000, which became  
          Proposition 34 on the November 2000 general election ballot.   
          One of the provisions of Proposition 34 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, any entity that qualifies as a "committee" under  
          the PRA is required to itemize all expenditures of $100 or more  
          on periodic campaign disclosure reports.  To the extent that a  
          committee paid a spokesperson $100 or more to appear in an  
          advertisement supporting or opposing a ballot measure, that  








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          information is already required to be reported on the  
          committee's campaign disclosure statements.

          The primary difference between the existing "paid spokesperson"  
          requirement and this bill is that this bill's reporting and  
          disclaimer requirements apply if a person was paid any amount of  
          money, but only if the advertisement suggested or stated that  
          the person who was being paid 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 this bill's reporting and  
          disclosure requirements are important to ensure that voters are  
          not mislead into thinking that the opinions of paid  
          spokespersons are those of a licensed professional. 

          California voters passed an initiative, Proposition 9, in 1974  
          that created the FPPC and codified significant restrictions and  
          prohibitions on candidates, officeholders and lobbyists. That  
          initiative is commonly known as the Political Reform Act (PRA).   
          Amendments to the PRA that are not submitted to the voters, such  
          as those contained in this bill, must further the purposes of  
          the initiative and require a two-thirds vote of both houses of  
          the Legislature.

          Please see the policy committee analysis for a full discussion  
          of this bill.
           

          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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