BILL ANALYSIS Ó
SB 2
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 2 (Lieu and Yee) - As Amended: August 14, 2013
Policy Committee: ElectionsVote:5-1
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill makes numerous changes to the Political Reform Act
(PRA) regarding requirements for slate mailers and disclosures
in political advertisements, and increases sanctions for certain
PRA violations. Specifically, this bill:
1) Provides that if a slate mailer is produced entirely in
a language other than English, the required "Notice to
Voters" shall be produced in that language, and if a
substantial portion of a slate mailer, as determined by the
Fair Political Practices Commission (FPPC) through
regulation, is in a language other than English, the
"Notice to Voters" shall be printed both in that language
and in English.
2) Requires, for audio and video advertisements supporting
or opposing a candidate or soliciting contributions for
that purpose, and authorized by a candidate, to include an
audio or visual appearance by the candidate, respectively,
stating that they have approved the message.
3) Increases the maximum fine for failing to comply with
state laws governing disclosures and disclaimers in
political advertisements from three times to six times the
cost of the advertisement, including placement costs.
4) Prohibits a person from making a contribution to a
committee on the condition or with the agreement that it
will be contributed to any particular ballot measure
committee, unless the contribution is fully disclosed, as
specified. For a contribution made in violation of this
provision, or in violation of an identical provision
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governing contributions to candidates, the committee is
subject to a payment to the General Fund in the amount of
the contribution and a fine, in the amount of 15% of the
contribution, to the Political Disclosure, Accountability,
Transparency, and Access Fund (PDATA Fund).
5) Increases the maximum fine, when a person is convicted
criminally for a violation of the PRA, from the greater of
$10,000 or three times the amount the person failed to
report properly or unlawfully contributed, expended, gave,
or received; to the greater of $15,000 or five times the
amount the person failed to report properly or unlawfully
contributed, expended, gave, or received.
6) Increases the maximum fine in a civil proceeding for the
making or receipt of an illegal contribution, gift, or
expenditure, from the greater of $1,000 or three times the
amount of the unlawful contribution, gift, or expenditure,
to the greater of $1,500 or five times the amount of the
unlawful contribution, gift, or expenditure.
7) Increases the maximum fine that can be levied in a civil
proceeding for a violation of the PRA, where no specific
penalty is provided, from $5,000 per violation to $7,000
per violation.
FISCAL EFFECT
1)Any costs to the FPPC will be minor and absorbable.
2)The commission anticipates around $30,000 in additional
penalty revenue annually.
COMMENTS
1) Purpose . According to the author, an estimated $460
million was spent in the 2011-12 election cycle involving
state candidates and statewide propositions. Given this
level of spending and the US Supreme Court's Citizens
United ruling, the author argues that more transparency and
disclosure of campaign activities and spending, and greater
sanctions for improper actions, are required.
2) Slate Mailers . In August 2010, then-chairman of the
FPPC, Dan Schnur, established a 25-member Advisory Task
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Force charged with proposing regulatory and statutory
changes to the PRA. The changes proposed by this bill to
slate mailer requirements are similar to recommendations of
that task force. The requirement for disclaimers to be
printed in the same language as the text of the slate
mailer has already been implemented through regulations
adopted by the FPPC.
3) Advertisements . Existing federal law requires a
candidate for federal office to include a statement made by
the candidate in any television and radio advertisement in
support of his or her candidacy indicating that the
candidate has approved the advertisement. This bill would
enact a similar requirement, known as "stand by your ad,"
for advertisements paid for by candidates for state and
local office in California.
4) PDATA Fund . SB 1001 (Yee)/Chapter 506 of 2012, imposed a
$50 annual fee on specified committees that are required to
file disclosure reports pursuant to the PRA and increased
the fee on lobbying firms and lobbyist employers from $25
to $50 per year per lobbyist. The resulting revenue, about
$490,000 annually, is to deposited into the newly-created
PDATA Fund and used for repair and improvements to the
Secretary of State's online and electronic disclosure
program for reports filed pursuant to the PRA.
5) Related Legislation . SB 3 (Yee & Lieu), also on today's
committee agenda, increases the penalty imposed on a person
or committee who files a statement or report required by
the PRA after the deadline for that report from $10 for
each day after the deadline that the statement or report is
filed to $30 per day, among other provisions.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081