BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 510
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 510 (Ammiano)
          As Amended  May 28, 2014
          2/3 vote
           
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          |ASSEMBLY:  |58-16|(January 30,    |SENATE: |27-9 |(August 18,    |
          |           |     |2014)           |        |     |2014)          |
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           Original Committee Reference:    E. & R.

          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:

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

          2)Permits a committee to omit the statement detailed above in an  
            advertisement if the occupation of the individual who is being  
            paid to appear in the advertisement is substantially similar  








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            to the occupation portrayed in the advertisement and the  
            committee maintains credible documentation of the license,  
            certification, or other training that permits the individual  
            to engage in the occupation portrayed in the advertisement and  
            provides it to the Fair Political Practices Commission (FPPC)  
            upon request.

           The Senate amendments  delete a requirement that a committee must  
          obtain a waiver from the FPPC in order to omit the disclosure  
          statement required by this bill, and instead permit a committee  
          to omit that statement as long as the committee maintains  
          documentation that the occupation of the individual who is being  
          paid to appear in the advertisement is substantially similar to  
          the occupation portrayed in the advertisement.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           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, 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 Political  
          Reform Act (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  
          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  








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          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 of 1974,  
          that created the FPPC and codified significant restrictions and  
          prohibitions on candidates, officeholders and lobbyists.  That  
          initiative is commonly known as the 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.

          The disclaimer created by this bill is not required to be  
          included in an advertisement related to a ballot measure if the  
          person who appears in the advertisement actually engages in the  
          occupation that is represented in the advertisement.  As  
          approved by the Assembly, this bill would have required the  
          committee to seek and obtain a waiver from the FPPC in order to  
          omit the disclaimer.  The Senate amendments delete the  
          requirement to obtain a waiver, and instead require the  
          committee to maintain documentation that the person in the  
          advertisement is permitted to engage in the occupation  
          represented, and to make that documentation available to the  
          FPPC upon request so that the FPPC can verify compliance with  
          this bill.  This bill, as amended in the Senate, is consistent  
          with Assembly actions.

          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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