BILL ANALYSIS Ó
SB 2
Page 1
SENATE THIRD READING
SB 2 (Lieu and Yee)
As Amended August 14, 2013
2/3 vote
SENATE VOTE :28-11
ELECTIONS 5-1 APPROPRIATIONS 12-5
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|Ayes:|Fong, Bocanegra, Bonta, |Ayes:|Gatto, Bocanegra, |
| |Hall, Perea | |Bradford, |
| | | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Hall, |
| | | |Holden, Pan, Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Donnelly |Nays:|Harkey, Bigelow, |
| | | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : Makes numerous significant changes to the Political
Reform Act of 1974 (PRA). Specifically, this bill :
1)Reduces, from 30 days to 10 days, the amount of time that a
primarily formed committee has from the date that a
proposition it was formed to support or oppose receives a
numerical designation, until the committee is required to
include that numerical designation in any reference to the
committee required by law.
2)Requires a slate mailer to include the Web site address, if
any, of the organization or committee that is sending the
mailer. Requires a slate mailer to include two asterisks (**)
next to any candidate or measure that appears in the slate
mailer if that appearance is paid for by a person other than
the candidate or measure. 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)
by regulation, is in a language other than English, the
"Notice to Voters" shall be printed both in that language and
English.
SB 2
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3)Requires a video or audio broadcast advertisement that
supports or opposes a candidate or solicits contributions for
that purpose, and that is authorized by a candidate or his or
her agent, to include a statement in which the candidate
identifies himself or herself and states that the candidate
has approved the message, as specified.
4)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.
5)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. Requires a
committee that violates this provision or an identical
provision governing contributions to candidates, to pay to the
General Fund the amount of the contribution and to pay a fine
equal to 15% of the contribution to the Political Disclosure,
Accountability, Transparency, and Access Fund (PDATA Fund).
6)Increases the maximum fine that can be levied 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.
7)Increases the maximum fine that can be levied 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.
8)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 : According to the Assembly Appropriations
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Committee:
1)Any costs to the FPPC will be minor and absorbable.
2)The FPPC anticipates around $30,000 in additional penalty
revenue annually.
COMMENTS : According to the author, "The Sunshine in Campaigns
Act provides the increased transparency and disclosure voters
have demanded while, at the same time, simplifying disclosure
requirements to allow better access and compliance with these
important rules. Increasing the penalties on violators is also
an important part of the Sunshine in Campaigns Act because far
too often we see campaigns treat the current fine levels as the
cost of doing business and not a real deterrent to bad behavior.
The Sunshine for Campaigns Act also improves candidate
accountability in broadcast advertisements, requiring candidates
now 'stand by their ad,' matching the long standing requirement
on federal candidates."
In August 2010, then-chairman of the FPPC, Dan Schnur,
established a 25-member Advisory Task 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.
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 requirement is commonly known as the "stand by your ad"
requirement. This bill enacts a similar "stand by your ad"
requirement for advertisements paid for by candidates for state
and local office in California.
SB 1001 (Yee), Chapter 506, Statutes 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 deposited into the newly-created PDATA Fund, and is available
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to be used for the online and electronic disclosure of reports
filed pursuant to the PRA.
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 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
FN: 0001823