BILL NUMBER: SB 52 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senators Leno and Hill
DECEMBER 20, 2012
An act to amend Sections 84505 and 85310 of, to add Sections
84506.1, 84506.2, 84506.3, and 84506.4 to, to add Article 6
(commencing with Section 84550) to Chapter 4 of Title 9 of, to repeal
Sections 84502, 84503, 84504, and 84506.5 of, and to
repeal and add Sections 84501, 84506, 84507, 84508, and 84509 of, the
Government Code, relating to the Political Reform Act of
1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 52, as amended, Leno. Political Reform Act of 1974: campaign
disclosures.
Existing law, the Political Reform Act of 1974, provides for the
comprehensive regulation of campaign financing, including requiring
the reporting of campaign contributions and expenditures and imposing
other reporting and recordkeeping requirements on campaign
committees. Existing law additionally imposes disclosure
statement requirements with respect to advertisements supporting or
opposing a candidate or ballot measure paid for by donors making
contributions of specified amounts or by independent expenditures and
defines several terms and phrases for these purposes. Existing
law makes a knowing or willful violation of the Political Reform Act
of 1974 a misdemeanor and subjects offenders to criminal penalties.
This bill would declare the intent of the Legislature to enact
legislation that would strengthen the Political Reform Act of 1974
and the campaign disclosure requirements within that act to require
that advertisements disclose specified funding, expenditure, and
issue advocacy information in a manner that clearly and unambiguously
identifies the three largest major donors.
This bill would repeal and recast several definitions. The bill
would repeal a committee identification requirement and the
disclosure statement requirements relating to advertisements for or
against any ballot measure paid for by any person whose cumulative
contributions are $50,000 and advertisements paid for by an
independent expenditure. The bill would impose new disclosure
statement requirements for radio advertisements, prerecorded
telephonic messages, television or video advertisements, and mass
mailing or print advertisements that would require the identification
of identifiable contributors, ballot measures, and other funding
details, as specified. The bill would also require a committee, in
prescribed circumstances, to establish and maintain a campaign
disclosure Internet Web site for each of its campaigns for the
purpose of making a contribution disclosure statement. The bill would
require covered organizations, as defined, that make
campaign-related disbursements or expenditures exceeding a certain
amount to comply with disclosure and accounting requirements. Covered
organizations would be required to keep an accounting of all
original contributors of political purpose funds and to make this
accounting available for audit by the Fair Political Practices
Commission. The bill would provide that, in addition to other
remedies, a person who makes a covered transfer of political purpose
funds in violation of specified requirements is liable in a civil or
administrative action brought by the Fair Political Practices
Commission or any person for a fine up to 3 times the amount of the
covered transfer. By introducing new disclosure requirements, the
violation of which would be a misdemeanor, the bill would create a
new crime, thereby imposing a state-mandated local program.
Existing law requires a person who makes a payment or promise of
payment totaling $50,000 or more for a communication that identifies,
but does not advocate the election or defeat of, a candidate for
elective state office, and that is disseminated within 45 days of an
election, to file a disclosure report with the Secretary of State.
This bill would reduce the payment threshold to $10,000 and change
the communication dissemination period to the period beginning 120
days before the primary or special election and ending on the date of
the general or runoff election.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known as the California Disclose Act.
SEC. 2. It is the intent of the Legislature to
enact legislation that would strengthen the Political Reform Act of
1974 and the campaign disclosure requirements within that act to
require that advertisements disclose the largest funders of all
political television, radio, print, and other forms of advertising
for ballot measures, independent expenditures, and issue advocacy in
a manner that clearly and unambiguously identifies the three largest
major donors.
SEC. 2. Section 84501 of the Government
Code is repealed.
84501. (a) "Advertisement" means any general or public
advertisement which is authorized and paid for by a person or
committee for the purpose of supporting or opposing a candidate for
elective office or a ballot measure or ballot measures.
(b) "Advertisement" does not include a communication from an
organization other than a political party to its members, a campaign
button smaller than 10 inches in diameter, a bumper sticker smaller
than 60 square inches, or other advertisement as determined by
regulations of the commission.
SEC. 3. Section 84501 is added to the
Government Code , to read:
84501. For purposes of this article, the following terms have the
following meanings:
(a) (1) "Advertisement" means a general or public advertisement
that is authorized and paid for by a person or committee for the
purpose of supporting or opposing a candidate for elective office or
a ballot measure or ballot measures, for an electioneering
communication, or for an issue advocacy advertisement, as defined in
Section 84550.
(2) "Advertisement" does not include a communication from an
organization other than a political party to its members, a campaign
button smaller than 10 inches in diameter, a bumper sticker smaller
than 60 square inches, or other advertisement as determined by
regulations of the Commission.
(b) "Campaign" means the expenditures and other activities of a
covered organization in support of, or opposition to, or in reference
to a specific ballot measure, candidate, legislative action, or
administrative action, or any combination thereof.
(c) "Campaign disclosure threshold" means ten thousand dollars
($10,000) in the case of a campaign in support of or opposition to a
statewide ballot measure, a state candidate, or issue advocacy, or
two thousand dollars ($2,000) in the case of a campaign in support of
or opposition to a local ballot measure or local candidate.
(d) "Campaign disclosure Internet Web site" means a committee's
Internet Web site for a specific campaign that discloses the top
identifiable contributors to that committee for that campaign, as
described in Section 84506.3.
(e) "Covered organization" has the same meaning as set forth in
subdivision (c) of Section 84550.
(f) "Earmarked original contributions" means the cumulative amount
of original contributions from an identifiable contributor that a
covered organization used for a specific campaign or that have been
directed to be used for the campaign but have not yet been expended.
(g) "Identifiable contributor" means a person whose earmarked
original contributions to a campaign's covered organization meet or
exceed the campaign disclosure threshold. If an original contributor'
s earmarked original contributions do not meet or exceed the campaign
disclosure threshold, the accumulation of those contributions shall
be treated as a single earmarked original contribution to the
original recipient.
(h) "Original contribution" has the same meaning as set forth in
subdivision (h) of Section 84550.
(i) "Original contributor" has the same meaning as set forth in
subdivision (i) of Section 84550.
SEC. 4. Section 84502 of the Government
Code is repealed.
84502. "Cumulative contributions" means the cumulative amount of
contributions received by a committee beginning 12 months prior to
the date the committee made its first expenditure to qualify,
support, or oppose the measure and ending within seven days of the
time the advertisement is sent to the printer or broadcast station.
SEC. 5. Section 84503 of the Government
Code is repealed.
84503. (a) Any advertisement for or against any ballot measure
shall include a disclosure statement identifying any person whose
cumulative contributions are fifty thousand dollars ($50,000) or
more.
(b) If there are more than two donors of fifty thousand dollars
($50,000) or more, the committee is only required to disclose the
highest and second highest in that order. In the event that more than
two donors meet this disclosure threshold at identical contribution
levels, the highest and second highest shall be selected according to
chronological sequence.
SEC. 6. Section 84504 of the Government
Code is repealed.
84504. (a) Any committee that supports or opposes one or more
ballot measures shall name and identify itself using a name or phrase
that clearly identifies the economic or other special interest of
its major donors of fifty thousand dollars ($50,000) or more in any
reference to the committee required by law, including, but not
limited, to its statement of organization filed pursuant to Section
84101.
(b) If the major donors of fifty thousand dollars ($50,000) or
more share a common employer, the identity of the employer shall also
be disclosed.
(c) Any committee which supports or opposes a ballot measure,
shall print or broadcast its name as provided in this section as part
of any advertisement or other paid public statement.
(d) If candidates or their controlled committees, as a group or
individually, meet the contribution thresholds for a person, they
shall be identified by the controlling candidate's name.
SEC. 7. Section 84505 of the Government
Code is amended to read:
84505. In addition to the requirements of Sections
84503, 84504, 84506, and 84506.5
84506.1, 84506.2, 84506.3, and 84506.4 , the committee placing
the advertisement or persons acting in concert with that committee
shall be prohibited from creating or using a noncandidate-controlled
committee or a nonsponsored committee to avoid, or that results in
the avoidance of, the disclosure of any individual, industry,
business entity, controlled committee, or sponsored committee as a
major funding source.
SEC. 8. Section 84506 of the Government
Code is repealed.
84506. (a) An advertisement supporting or opposing a candidate or
ballot measure, that is paid for by an independent expenditure,
shall include a disclosure statement that identifies both of the
following:
(1) The name of the committee making the independent expenditure.
(2) The names of the persons from whom the committee making the
independent expenditure has received its two highest cumulative
contributions of fifty thousand dollars ($50,000) or more during the
12-month period prior to the expenditure. If the committee can show,
on the basis that contributions are spent in the order they are
received, that contributions received from the two highest
contributors have been used for expenditures unrelated to the
candidate or ballot measure featured in the communication, the
committee shall disclose the contributors making the next largest
cumulative contributions of fifty thousand dollars ($50,000) or more.
(b) If an acronym is used to identify any committee names required
by this section, the names of any sponsoring organization of the
committee shall be printed on print advertisements or spoken in
broadcast advertisements.
SEC. 9. Section 84506 is added to the
Government Code , to read:
84506. (a) A radio advertisement paid for by a
candidate-controlled committee that clearly identifies the candidate
or one or more of the opponents of the candidate shall include an
audio statement in which the candidate identifies himself or herself
and states that the candidate has approved the message.
(b) (1) A radio advertisement or prerecorded telephonic message
regarding a campaign shall include a disclosure at the end of the
advertisement read in a clearly spoken manner and in a pitch and tone
substantially similar to the rest of the advertisement that reads as
follows: "Top funders of this ad are state names in descending
order of identifiable contributors who have made the three largest
earmarked original contributions for the campaign]. Paid for by name
of the committee that paid for the advertisement]."
(2) If there are fewer than three identifiable contributors, the
disclosure required by paragraph (1) shall be adjusted accordingly to
disclose the qualifying identifiable contributors, if any.
(3) If there are no identifiable contributors or the committee
that paid for the advertisement is the only identifiable contributor,
it may replace the disclosure required by paragraph (1) with the
following: "Paid for by name of the committee that paid for the
advertisement]."
(4) If the advertisement is a prerecorded telephonic message and
names each of the three largest identifiable contributors of the
campaign and identifies the speaker as speaking on behalf of them, it
may replace the disclosure required by paragraph (1) with the
following: "Paid for by name of the committee that paid for the
advertisement]."
(5) The disclosures specified in this subdivision shall not be
required if the advertisement is paid for by a candidate-controlled
committee and clearly identifies the candidate or one or more of the
opponents of the candidate or if the committee has not expended an
amount on the campaign that meets or exceeds the campaign disclosure
threshold.
SEC. 10. Section 84506.1 is added to the
Government Code , to read:
84506.1. (a) A television or video advertisement paid for by a
candidate-controlled committee that clearly identifies the candidate
or one or more of the opponents of the candidate shall include a
statement in which the candidate identifies himself or herself and
states that the candidate has approved the message. The candidate
statement shall be made using an unobscured, full-screen video of the
candidate, alone, making the statement, or by using an unobscured,
full-screen, and clearly identifiable photographic image of the
candidate, alone, that is displayed during an audio voiceover of the
candidate reading the statement.
(b) Except as otherwise provided by this section, a television or
video advertisement regarding a campaign shall include at the end of
the advertisement a disclosure that includes all of the following:
(1) A full-screen without audio on a black background for a
minimum of three seconds that is dedicated to the disclosure
described in this section.
(2) If the advertisement identifies one or two ballot measures,
the text "Top Funders of This Ad for "Yes on" followed by the ballot
measure number or letter for any ballot measures it supports or "No
on" followed by the ballot measure number or letter for any ballot
measures it opposes]." If the advertisement does not identify ballot
measures or identifies more than two ballot measures, the text "Top
Funders of This Ad." The text shall be located at the top of the
television or video display screen and centered horizontally, shall
be yellow in color in Arial equivalent font, and the font size shall
be at least 5 percent of the height of the television or video
display screen.
(3) Immediately below the text described in paragraph (2), the
logos, if any, as they appear on the Internet Web site homepage of
the identifiable contributor, for the identifiable contributors who
have made the three largest earmarked original contributions to the
committee that paid for the advertisement. Each logo shall occupy at
least 15 percent of the width or height of the television or video
display screen and the logos shall be displayed from left to right in
descending order beginning with the largest identifiable
contributor.
(4) Immediately below the logos, if any, described in paragraph
(3), or beneath the text described in paragraph (2), if no
identifiable contributor has a logo, the identifiable contributors
who have made the three largest earmarked original contributions to
the committee that paid for the advertisement. The three identifiable
contributors shall each be disclosed on a separate vertical line, in
descending order, beginning with the identifiable contributor who
made the largest earmarked original contribution on the first line.
The name of each of the three identifiable contributors shall be
centered horizontally. The text shall be white in color in Arial
Narrow equivalent font and the font size shall be at least 5 percent
of the height of the television or video display screen.
(5) Immediately below the text described in paragraph (4), the
text "Full Funding Details At insert Internet Web site address of the
campaign disclosure Internet Web site]." The text shall be yellow in
color in Arial Narrow equivalent font and the font size shall be
equivalent to 4 percent of the height of the television or video
display screen.
(6) The text "Paid for by name of the committee that paid for the
advertisement]." The text shall be yellow in color in Arial Narrow
equivalent font and the font size shall be equivalent to 3 percent of
the height of the television or video display screen. The text shall
be located in a position that is vertically 3 percent above the
bottom of the television or video display screen and centered
horizontally.
(7) If there are fewer than three identifiable contributors, the
disclosure required by this subdivision shall be adjusted accordingly
to disclose only those that qualify as identifiable contributors, if
any. If the committee does not have any identifiable contributors,
the disclosure shall be adjusted to include the name of the committee
in place of the names of identifiable contributors.
(c) The disclosures described in subdivision (b) shall not be
required if the advertisement is paid for by a candidate-controlled
committee and clearly identifies the candidate or one or more of the
opponents of the candidate or if the committee paying for the
advertisement has not expended an amount on the campaign that meets
or exceeds the campaign disclosure threshold.
SEC. 11. Section 84506.2 is added to the
Government Code , to read:
84506.2. (a) Except for slate mailers or as otherwise provided by
this section, a mass mailing or print advertisement regarding a
campaign shall include a disclosure area on the largest page of the
mass mailing or print advertisement that satisfies all of the
following:
(1) The disclosure area shall be set apart from the rest of the
page on which it is located by a line framing the disclosure area in
the shape of a square or rectangle and the line shall be a color that
establishes a contrast with the background color of the remainder of
the disclosure area. The disclosure area within the border line
shall have a solid background color that establishes a contrast to
the color of the disclosure text that is equivalent to or greater
than the text and background color contrast in the other areas of the
mass mailing or print advertisement.
(2) The text "Top Funders of This Ad" shall be located at the top
of the disclosure area and centered horizontally in the disclosure
area. The text shall be in an Arial equivalent font with a font size
of at least 14-point for pages smaller than 8.5 inches by 11 inches
and at least 16-point for pages that are equal to, or larger than,
8.5 inches by 11 inches.
(3) Immediately below the text described in paragraph (2) shall be
printed the logos, if any, as they appear on the Internet Web site
homepage of the identifiable contributor, for the identifiable
contributors who have made the three largest earmarked original
contributions to the committee that paid for the mass mailing or
print advertisement. Each logo shall occupy at least 8 percent of the
width or height of the page on which the disclosure area is located
and the logos shall be displayed from left to right in descending
order beginning with the largest identifiable contributor.
(4) Immediately below the logos, if any, described in paragraph
(3), or beneath the text described in paragraph (2) if no
identifiable contributor has a logo, shall be identified by name the
identifiable contributors who have made the three largest earmarked
original contributions for the campaign that paid for the mass
mailing or print advertisement. The three identifiable contributors
shall each be disclosed on a separate vertical line, in descending
order, beginning with the identifiable contributor who made the
largest earmarked original contributions on the first line. The name
of each of the three identifiable contributors shall be centered
horizontally. The text shall identify each identifiable contributor
in an Arial Narrow equivalent font with a font size of at least
10-point for pages smaller than 8.5 inches by 11 inches and at least
12-point for pages that are equal to, or larger than, 8.5 inches by
11 inches.
(5) Immediately below the text described in paragraph (4), the
text "Full Funding Details At insert Internet Web site address of the
campaign disclosure Internet Web site]." The text shall be in an
Arial Narrow equivalent font with at least 10-point font size for
pages smaller than 8.5 inches by 11 inches and at least 12-point font
size for pages that are equal to, or larger than, 8.5 inches by 11
inches.
(6) The text "Paid for by name of the committee that paid for the
advertisement]." The text shall be located at the bottom of the
disclosure area and shall be in an Arial Narrow equivalent font with
at least 8-point font size for pages smaller than 8.5 inches and at
least 10-point font size for pages that are equal to, or larger than,
8.5 inches by 11 inches.
(7) If there are fewer than three identifiable contributors, the
disclosure shall be adjusted accordingly to disclose the qualifying
identifiable contributors, if any. If the committee does not have any
identifiable contributors, the disclosure shall be adjusted to
include the name of the committee in place of the names of
identifiable contributors.
(b) The disclosures described in subdivision (a) shall not be
required if the committee paying for the advertisement is a
candidate-controlled committee that pays for advertisements in
support of the candidate or if the committee paying for the
advertisement has not expended an amount on the campaign that meets
or exceeds the campaign disclosure threshold.
SEC. 12. Section 84506.3 is added to the
Government Code , to read:
84506.3. Except for a committee that is controlled by a candidate
and that is paying for advertisements in support of the candidate, a
committee shall establish and maintain a separate campaign
disclosure Internet Web site for each of its campaigns for which it
has expended an amount that meets or exceeds the campaign disclosure
threshold and for which it pays for an advertisement described in
this article. If the campaign has an Internet Web site homepage, that
Internet Web site may also serve as the campaign disclosure Internet
Web site. The homepage of the campaign disclosure Internet Web site
and any other Internet Web sites maintained by the committee shall
include a disclosure statement area for the purpose of making a
contribution disclosure statement that satisfies all of the
following:
(a) The disclosure statement area shall be at least 250 pixels
wide. The disclosure statement area shall have a white background and
a border that is dark in color.
(b) If the campaign involves one or more ballot measures, the
disclosure statement shall include the text "Top Funders of This
Campaign for "Yes on" followed by the ballot measure number or letter
for any ballot measures it supports or "No on" followed by the
ballot measure number or letter for any ballot measures it opposes]."
This text shall be located at the top of the disclosure statement
area and centered horizontally in the disclosure statement area. The
text shall be black in color in an Arial equivalent font and shall be
at least 10-point font size.
(c) Immediately below the text described in subdivision (b), the
disclosure statement shall include a list of the identifiable
contributors who have made the 10 largest earmarked original
contributions to the committee. Each of the 10 identifiable
contributors shall be disclosed on a separate vertical line, in
descending order, beginning with the identifiable contributor who
made the largest cumulative contribution on the first line. The text
shall be black in color in an Arial Narrow equivalent font and shall
be at least 9-point font size.
(d) Immediately below the text described in subdivision (c), the
disclosure statement shall include the logos, if any, as they appear
on the Internet Web site homepage of the identifiable contributor,
for the identifiable contributors who made the 10 largest earmarked
original contributions to the committee. Each logo shall occupy at
least 75 horizontal or vertical pixels and shall be displayed from
left to right in descending order beginning with the largest
identifiable contributor.
(e) (1) The disclosure statement shall include a hyperlink to
another page on the campaign disclosure Internet Web site that lists
all of the campaign's identifiable contributors. The hyperlink shall
be labeled "More funding info" and shall be a standard hyperlink
centered at the bottom of the disclosure area that is displayed as
blue underlined text in Arial-equivalent font in at least 9-point
font size.
(2) The hyperlinked page on the committee disclosure Internet Web
site shall have a title that reads "Large Funders of this Campaign."
The linked page shall disclose each identifiable contributor of the
committee on a separate vertical line, in descending order, beginning
with the identifiable contributor that had the largest earmarked
original contribution on the first line. Each line shall show the
name of the identifiable contributor and the amount of its earmarked
original contributions, current within three days. These disclosures
shall be clear and shall be the only content on the page other than
the campaign disclosure Internet Web site's standard navigation
features.
(f) If there are fewer than 10 identifiable contributors, the
disclosure statement shall be adjusted accordingly to disclose the
qualifying identifiable contributors, if any. If the committee does
not have any identifiable contributors, the disclosure shall be
adjusted to include the name of the committee in place of the names
of identifiable contributors.
SEC. 13. Section 84506.4 is added to the
Government Code , to read:
84506.4. The Commission shall promulgate regulations to require
disclosures on all forms of advertisements not covered by this
article, including, but not limited to, electronic media
advertisements and billboards. If feasible, the regulations shall
require the listing of the name of the committee and as many of the
three identifiable contributors that made the largest earmarked
original contributions to the campaign as possible in a conspicuous
manner. This disclosure
area shall occupy no more than 10 percent of the advertisement. If
the advertisement medium allows, the disclosure area shall contain a
hyperlink to the campaign disclosure Internet Web site.
SEC. 14. Section 84506.5 of the
Government Code is repealed.
84506.5. An advertisement supporting or opposing a candidate that
is paid for by an independent expenditure must include a statement
that it was not authorized by a candidate or a committee controlled
by a candidate.
SEC. 15. Section 84507 of the
Government Code is repealed.
84507. Any disclosure statement required by this article shall be
printed clearly and legibly in no less than 10-point type and in a
conspicuous manner as defined by the commission or, if the
communication is broadcast, the information shall be spoken so as to
be clearly audible and understood by the intended public and
otherwise appropriately conveyed for the hearing impaired.
SEC. 16. Section 84507 is added to the
Government Code , to read:
84507. For purposes of a disclosure required by this article, the
following shall also apply in the event that an identifiable
contributor is a person who is an individual:
(a) If the committee receiving the earmarked original
contributions is supporting or opposing a candidate, the disclosure
shall include the occupation and employer of the identifiable
contributor in addition to the contributor's name.
(b) If the committee receiving the earmarked original
contributions is supporting or opposing a ballot measure, and the
passage or defeat of the ballot measure directly benefits the
employer of the identifiable contributor, the disclosure shall
include the occupation and employer of the identifiable contributor
in addition to the contributor's name. However, if an employer of an
identifiable contributor is also an identifiable contributor of that
committee, the earmarked original contributions of the employees
shall, instead, be deemed to be earmarked original contributions by
the employer for purposes of determining the total earmarked original
contribution made by the employer in order to determine which
identifiable contributors shall be disclosed on an advertisement
pursuant to this article.
(c) If the committee receiving the earmarked original
contributions is supporting or opposing a ballot measure, and the
passage or defeat of the ballot measure does not directly benefit the
employer of the identifiable contributor, the disclosure shall
include only the name of the identifiable contributor.
SEC. 17. Section 84508 of the
Government Code is repealed.
84508. If disclosure of two major donors is required by Sections
84503 and 84506, the committee shall be required to disclose, in
addition to the committee name, only its highest major contributor in
any advertisement which is:
(a) An electronic broadcast of 15 seconds or less, or
(b) A newspaper, magazine, or other public print media
advertisement which is 20 square inches or less.
SEC. 18. Section 84508 is added to the
Government Code , to read:
84508. (a) The disclosure of the name of an identifiable
contributor required by this article need not include such legal
terms as "incorporated," "committee," "political action committee,"
or "corporation," or their abbreviations, unless the term is part of
the contributor's name in common usage or parlance. This section does
not prevent a contributor from being disclosed by a name used in
common usage or parlance, including, but not limited to, an
abbreviation or acronym.
(b) For a disclosure made pursuant to Sections 84506 to 84506.3,
inclusive, the committee name listed need not include its economic or
other special interests, nor the names of any major donors.
SEC. 19. Section 84509 of the
Government Code is repealed.
84509. When a committee files an amended campaign statement
pursuant to Section 81004.5, the committee shall change its
advertisements to reflect the changed disclosure information.
SEC. 20. Section 84509 is added to the
Government Code , to read:
84509. If the order of the identifiable contributors required to
be displayed in an advertisement pursuant to this article changes
after a statement is filed pursuant to Section 84554, the disclosure
in the advertisement shall be updated as follows:
(a) A television, radio, or other electronic media advertisement
shall be updated to reflect the new ordering of identifiable
contributors within three calendar days.
(b) A print media advertisement, including nonelectronic
billboards, shall be updated to reflect the new ordering of
identifiable contributors prior to placing a new or modified order
for additional printing of the advertisement.
SEC. 21. Article 6 (commencing with Section 84550)
is added to Chapter 4 of Title 9 of the Government Code
, to read:
Article 6. Expenditures of Organizations
84550. For purposes of this article, the following terms have the
following meanings:
(a) "Campaign" means the expenditures and other activities of a
covered organization in support of, or opposition to, or in reference
to, a specific ballot measure, candidate, legislative action, or
administrative action, or any combination thereof.
(b) "Campaign-related disbursement" means a disbursement of money
by a covered organization for any of the following:
(1) An expenditure in support of, or opposition to, a ballot
measure.
(2) An independent expenditure in support of, or opposition to, a
candidate.
(3) An electioneering communication.
(4) An issue advocacy advertisement.
(5) A covered transfer of political purpose funds.
(c) "Covered organization" means a person, other than an
individual or political party, that can accept contributions,
donations, payments, or any other form of funds, including, but not
limited to, a committee, a nonprofit organization, a business entity,
a labor organization, and a federal or out-of-state political action
committee.
(d) "Covered transfer of political purpose funds" means a transfer
or payment of political purpose funds in an aggregate amount of one
thousand dollars ($1,000) or more in a calendar year by a covered
organization to another covered organization.
(e) "Electioneering communication" means a communication described
in subdivision (a) of Section 85310.
(f) "Issue advocacy advertisement" means an advertisement in a
calendar quarter that is paid for by a person required to file a
statement under subdivision (b) of Section 86115 in the calendar
quarter and that does all of the following:
(1) Clearly refers to the subject matter, description, or name of
pending legislative or administrative action.
(2) Reflects a view on the legislative or administrative action
referred to in paragraph (1).
(3) Can only be reasonably interpreted as an appeal for the
recipient of the advertisement to take action by contacting an
employee or elected official of the state government or any local
government or encouraging others to contact those persons.
(g) "Ordinary business funds" means amounts received by a covered
organization in the ordinary course of any trade or business
conducted by the covered organization, or in the form of investments
in the covered organization.
(h) "Original contribution" means a contribution, donation,
transfer, or payment of dues made by an original contributor to an
original recipient. In the case of an original contributor that is a
covered organization, the original contribution amount is the amount
that is made up entirely of ordinary business funds and
contributions, donations, transfers, or payments of dues amounting to
less than an aggregate of one thousand dollars ($1,000) from each
person.
(i) "Original contributor" means a person that was the original
source of political purpose funds acquired by a covered organization,
notwithstanding the fact that the political purpose funds were
transferred, in whole or in part, through one or more covered
organizations. An original contributor includes any of the following:
(1) An individual, political party, or other person that does not
accept political purpose funds from others and that makes one or more
contributions or payments of political purpose funds to a covered
organization in an aggregate amount of one thousand dollars ($1,000)
or more in a calendar year.
(2) If a covered organization makes a campaign-related
disbursement, any of the following persons or entities whose
political purpose funds were used in that disbursement:
(A) Any original contributor identified in a covered transfer
statement received by the covered organization.
(B) Any original contributor defined in paragraph (1).
(C) The covered organization, if it used ordinary business funds
totaling one thousand dollars ($1,000) or more.
(D) The covered organization, if it used one thousand dollars
($1,000) or more from persons who each made payments or contributions
totaling less than one thousand dollars ($1,000) in a calendar year.
(j) "Original recipient" means the first covered organization to
which an original contribution is made.
(k) "Political purpose funds" means funds made up of any payments,
including contributions, donations, transfers, or payments of dues,
that qualify as contributions or that are made to a covered
organization by a person who does any of the following:
(1) Requests or gives permission for the payment to be used for
campaign-related disbursements.
(2) Makes the payment in response to a solicitation or other
request for funds that are expected to be used for campaign-related
disbursements.
(3) Makes the payment to a covered organization that publicly
declares that any payments may be expected to be used for
campaign-related disbursements unless the person prohibits, in
writing, the use of their funds for campaign-related disbursements.
84551. (a) A covered organization that makes campaign-related
disbursements aggregating more than one thousand dollars ($1,000) in
a calendar year shall only expend political purpose funds for those
disbursements. A covered organization shall not make any
campaign-related disbursements using funds received by a transfer or
payment from another covered organization if that organization has
not provided a transfer of political purpose funds statement pursuant
to Section 84553.
(b) If a covered organization's political purpose funds and
campaign-related disbursements are fully accounted for, no public
disclosure shall be required relating to the identity of the covered
organization's other members and general donors. Any public
disclosure shall be limited to the sources, amounts, expenditures,
and transfers of the covered organization's political purpose funds
and campaign-related disbursements.
84552. (a) A covered organization shall keep an accounting of all
of the original contributors of its political purpose funds. The
accounting shall be available for audit by the Commission and shall
include all of the following information relating to each original
contributor:
(1) The same identifying information required for persons who make
contributions.
(2) The date, amount, and original recipient of each original
contribution that makes up the covered organization's political
purpose funds from the original contributor.
(3) Any amounts of each original contribution that are directed to
be used for specific campaigns.
(4) The dates, amounts, campaigns, and other purposes for which
original contributors' funds were expended or the covered
organizations that they were transferred to, if any.
(b) Records for each original contribution shall be preserved for
at least 48 months after they are recorded as having been expended,
transferred, or used for other purposes.
84553. (a) If a covered organization makes a covered transfer of
political purpose funds, it shall provide a transfer of political
purpose funds statement made under penalty of perjury to both the
Commission and the recipient organization within 24 hours. The
statement shall include the same identifying information for both the
covered organization and the recipient organization as required for
committees, and a statement of what amounts, if any, of the
transferred funds are directed to be used for specific campaigns.
(b) The transfer of political purpose funds statement shall
include an accounting of each original contribution making up the
transfer that includes all of the following:
(1) The same identifying information required for persons who make
contributions.
(2) The contribution's date, amount, and original recipient.
(3) Any portions of the contribution that are directed to be used
for specific campaigns. If the transfer of political purpose funds
statement specifies that the transferred funds are directed to be
used for specific campaigns, then that direction shall be listed,
provided it is consistent with the original direction for the
original contribution's use.
84554. (a) A covered organization that makes expenditures for a
specific campaign in an amount, in the aggregate, equal to or greater
than the applicable campaign disclosure threshold, as defined in
Section 84501, in a calendar year that are not covered transfers of
political purpose funds shall file a statement made under penalty of
perjury with the Secretary of State and the Commission that includes
the same identifying information for the covered organization as
required for committees.
(b) The statement required by subdivision (a) shall include an
accounting of each original contribution that was used for the
covered organization's cumulative expenditures for the campaign, plus
any original contributions that have been directed to be used for
the campaign but have not yet been expended, and shall contain all of
the following information:
(1) The same identifying information required for persons who make
contributions.
(2) The contribution's date, amount, and original recipient.
(3) The date or dates of the original statement or statements on
which it was listed as expended, if any.
(c) The statement described in subdivision (a) shall be amended
within 24 hours from the time at which the aggregated earmarked
original contributions, as defined in Section 84501, for the campaign
increase by an amount that meets or exceeds the campaign disclosure
threshold since the previous statement.
84555. A covered organization that makes campaign-related
disbursements shall be subject to discretionary audits conducted by
the Commission. An audit conducted pursuant to this section shall be
limited to examining the covered organization's campaign-related
disbursements and sources and uses of its political purpose funds. A
covered organization shall keep copies of records detailing a person'
s request or granting of permission to use its funds for
campaign-related disbursements, any written statements persons made
prohibiting the use of their funds for campaign-related
disbursements, its fundraising solicitations, and the transfer of
political purpose funds statements from the covered organizations
that transfer political purpose funds to it. A covered organization
shall make these records available for inspection by the Commission,
if requested, during an audit.
84556. (a) In addition to the remedies provided for in Chapter 11
(commencing with Section 91000), a person who makes a covered
transfer of political purpose funds in violation of this article is
liable in a civil or administrative action brought by the Commission
or any person for a fine up to three times the amount of the covered
transfer of political purpose funds.
(b) The remedies provided for in subdivision (a) shall also apply
to any person who purposely causes any other person to violate any
provision of this article or who aids and abets any other person in a
violation.
(c) If a judgment is entered against the defendant or defendants
in an action brought under this section, the plaintiff shall receive
50 percent of the amount recovered. The remaining 50 percent shall be
deposited in the General Fund of the state. In an action brought by
a local civil prosecutor, 50 percent shall be deposited in the
account of the agency bringing the action and 50 percent shall be
paid to the General Fund of the state.
SEC. 22. Section 85310 of the
Government Code is amended to read:
85310. (a) Any A person who makes a
payment or a promise of payment totaling fifty
ten thousand dollars ($50,000)
($10,000) or more for a communication that clearly identifies a
candidate for elective state office, but does not
expressly advocate the election or defeat of the candidate, and that
is disseminated, broadcast, or otherwise published within
45 days of an election during the period beginning 120
days before the primary or special election and ending on the date
of the general or runoff election , shall file online or
electronically with the Secretary of State a report disclosing the
name of the person, address, occupation, and employer, and amount of
the payment. The report shall be filed within 48 hours of making the
payment or the promise to make the payment.
(b) (1) Except as provided in paragraph (2), if any
a person has received a payment or a promise of
a payment from other persons totaling five thousand dollars ($5,000)
or more for the purpose of making a communication described in
subdivision (a), the person receiving the payments shall disclose on
the report the name, address, occupation and employer, and date and
amount received from the person.
(2) A person who receives or is promised a payment that is
otherwise reportable under paragraph (1) is not required to report
the payment if the person is in the business of providing goods or
services and receives or is promised the payment for the purpose of
providing those goods or services.
(c) Any A payment received by a
person who makes a communication described in subdivision (a) is
subject to the limits specified in subdivision (b) of Section 85303
if the communication is made at the behest of the clearly identified
candidate.
SEC. 23. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 24. The Legislature finds and declares that
this bill furthers the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.