Amended in Senate April 24, 2013

Amended in Senate April 1, 2013

Senate Bill No. 52

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, begin delete to add Article 6 (commencing with Section 84550) to Chapter 4 of Title 9 of, end delete to repeal Sections 84502, 84503, begin delete 84504, and 84506.5 end delete begin insert and 84504 end insert of, and to repeal and add Sections 84501, 84506, begin insert 84506.5, end insert 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 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 begin insert political advertisements that are end insert radio advertisements, prerecorded telephonic messages, television or video advertisements, begin delete and end delete begin insert or end insert 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 begin delete campaign end delete disclosure Internet Web site begin delete for each of its campaigns end delete for the purpose of making a contribution disclosure statement. begin delete 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. end delete 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: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: 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.  

Section 84501 of the Government Code is repealed.

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 begin delete 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. end delete begin insert any of the following: end insert

begin insert

(A) 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.

end insert begin insert

(B) An electioneering communication.

end insert begin insert

(C) An issue advocacy advertisement.

end insert

(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.

begin delete

(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

end delete

begin insert (b) end insert begin insert   end insert begin insert “Cumulative end insert contributions” means the cumulative amount
of begin delete original end delete contributions begin delete 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 end delete begin insert received by a committee beginning 18 months prior to
the date the committee made its first expenditure for a political
advertisement or for the purpose of qualifying, supporting, or
opposing a candidate for elective office or a ballot measure end insert .

begin delete

(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.

end delete begin delete

(h) “Original contribution” has the same meaning as set forth
in subdivision (h) of Section 84550.

end delete begin delete

(i) “Original contributor” has the same meaning as set forth in
subdivision (i) of Section 84550.

end delete begin insert

(c) “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.

end insert begin insert

(d)  “Disclosure threshold” means ten thousand dollars
($10,000) in the case of a campaign regarding a statewide ballot
measure or a state candidate or in the case of a statewide issue
advocacy advertisement, or two thousand dollars ($2,000) in the
case of a campaign regarding a local ballot measure or a local
candidate or in the case of a local issue advocacy advertisement.

end insert begin insert

(e) “Electioneering communication” means a communication
described in subdivision (a) of Section 85310.

end insert begin insert

(f) “Identifiable contributor” means a person that is the original
source of contributions received by a committee that cumulatively
meet or exceed the disclosure threshold, notwithstanding the fact
that the contributions were transferred, in whole or in part, through
one or more other committees or persons.

end insert begin insert

(g) “Issue advocacy advertisement” means an advertisement
that clearly refers to and reflects a view on the subject matter,
description, or name of a pending legislative action, administrative
action, or one or more ballot measures and does any of the
following:

end insert begin insert

(1) 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.

end insert begin insert

(2) Refers to a pending legislative action and is disseminated,
broadcast, or otherwise communicated within 60 days of the end
of the legislative session.

end insert begin insert

(3) Refers to one or more ballot measures and is disseminated,
broadcast, or otherwise communicated within 120 days of the
election concerning that measure or measures.

end insert begin insert

(h) “Political advertisement” means an advertisement, unless
it is paid for by a candidate-controlled committee and is an
advertisement relating to the candidate’s own election and not for
any other campaign.

end insert

SEC. 4.  

Section 84502 of the Government Code is repealed.

SEC. 5.  

Section 84503 of the Government Code is repealed.

SEC. 6.  

Section 84504 of the Government Code is repealed.

SEC. 7.  

Section 84505 of the Government Code is amended
to read:

84505.  

In addition to the requirements of Sections 84504,
84506, 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.

SEC. 9.  

Section 84506 is added to the Government Code, to
read:

begin delete

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)

end delete

begin insert

begin insert 84506. end insert   

end insert

begin insert (a) end insert   begin delete (1) end delete begin delete   end delete A begin insert political advertisement that is a end insert radio
advertisement or prerecorded telephonic message begin delete regarding a
campaign end delete 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 begin delete earmarked original contributions for the campaign] end delete begin insert cumulative
contributions] end insert . Paid for by [name of the committee that paid for
the advertisement].”

begin delete

(2)

end delete

begin insert (b) end insert  If there are fewer than three identifiable contributors, the
disclosure required by begin delete paragraph (1) end delete begin insert subdivision (a) end insert shall be
adjusted accordingly to disclose the qualifying identifiable
contributors, if any.

begin delete

(3)

end delete

begin insert (c) end insert  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 begin delete paragraph (1) end delete begin insert subdivision
(a) end insert with the following: “Paid for by [name of the committee that
paid for the advertisement].”

begin delete

(4)

end delete

begin insert (d) end insert  If the advertisement begin delete is a prerecorded telephonic message
and end delete names each of the three largest identifiable contributors begin delete of the
campaign end delete and identifies the speaker as speaking on behalf of them,
it may replace the disclosure required by begin delete paragraph (1) end delete begin insert subdivision
(a) end insert with the following: “Paid for by [name of the committee that
paid for the advertisement].”

begin delete

(5)

end delete

begin insert (e) end insert  The disclosures specified in begin delete this subdivision end delete begin insert subdivision (a) end insert
shall not be required if the begin delete 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 end delete begin insert committee paying
for the political advertisement does not have cumulative
contributions that meet or exceed the disclosure threshold end insert .

SEC. 10.  

Section 84506.1 is added to the Government Code,
to read:

begin delete

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)

end delete

begin insert

begin insert 84506.1. end insert   

end insert

begin insert (a) end insert   begin delete Except as otherwise provided by this section, end delete begin insert A
political advertisement that is end insert a television or video advertisement begin delete regarding a campaign shall include at the end of the advertisement
a disclosure end delete begin insert shall include a disclosure area with a solid black
background on the entire bottom one end insert - begin insert third of the television or
video display screen for a minimum of six seconds at the beginning
of the advertisement end insert that includes all of the following:

begin delete

(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)

end delete begin insert

(1) The text “Top Funders of This Ad.” The text shall be located
at the top of the disclosure area and centered horizontally, shall
be yellow in color in Arial equivalent font, and the font size shall
be at least 4 percent of the height of the television or video display
screen.

end insert begin insert

(2) Immediately below the text described in paragraph (1), the
names of the identifiable contributors who have made the three
largest cumulative contributions. The identifiable contributors
shall each be disclosed on a separate horizontal line, in descending
order, beginning with the identifiable contributor who made the
largest cumulative contributions on the first line. The name of each
of the 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 4 percent of the height of the television
or video display screen.

end insert begin insert

(3) The text “Funding Details At [insert Internet Web site
address of the disclosure Internet Web site].” The text shall be
yellow in color in Arial Narrow equivalent font and the font size
shall be equivalent to 2.5 percent of the height of the television or
video display screen. The text shall be left-aligned and located in
a position that is 2.5 percent of the height of the television or video
display screen away from the bottom left of the television or video
display screen.

end insert

begin insert (4) end insert  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 begin delete 3 end delete
begin insert 2.5 end insert percent of the height of the television or video display screen.
The text shall be begin insert right-aligned and end insert located in a position that is
vertically begin delete 3 end delete begin insert 2.5 end insert percent begin delete above the bottom end delete begin insert of the height end insert of the
television or video display screen begin delete and centered horizontally end delete begin insert away
from the bottom right of the television or video display screen end insert .

begin delete

(7)

end delete

begin insert (5) end insert  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.

begin delete

(c)

end delete

begin insert (b) end insert  The disclosures described in subdivision begin delete (b) end delete begin insert (a) end insert shall not be
required if the begin delete 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 end delete begin insert committee
paying for the political advertisement does not have cumulative
contributions that meet or exceed the disclosure threshold end insert .

SEC. 11.  

Section 84506.2 is added to the Government Code,
to read:

84506.2.  

(a) Except for slate mailers begin delete or as otherwise provided
by this section end delete , a begin insert political advertisement that is a end insert mass mailing or
begin insert a end insert print advertisement begin delete regarding a campaign end delete begin insert and that is 12 square
inches or more in size end insert shall include a disclosure area on the largest
page of the mass mailing or print advertisement that satisfies all
of the following:

begin delete

(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.

end delete begin insert

(1) The disclosure area shall have a solid white background so
as to be easily legible, and shall be in a printed or drawn box on
the bottom of the page that is set apart from any other printed
matter. All text in the disclosure area shall be black in color.

end insert

(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 begin delete 14-point end delete begin insert 12-point end insert for begin delete pages end delete begin insert advertisements end insert smaller than
begin delete 8.5 inches by 11 inches end delete begin insert 93 square inches end insert and at least begin delete 16-point end delete
begin insert 14-point end insert for begin delete pages end delete begin insert advertisements end insert that are equal to, or larger than,
begin delete 8.5 inches by 11 end delete begin insert 93 square end insert inches.

begin delete

(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.

end delete begin insert

(3) Immediately below the text described in paragraph (2) shall
be the names of the identifiable contributors who have made the
three largest cumulative contributions. The identifiable
contributors shall each be disclosed on a separate horizontal line,
in descending order, beginning with the identifiable contributor
who made the largest cumulative contributions on the first line.
The name of each of the identifiable contributors shall be centered
horizontally in the disclosure area. The text shall identify each
identifiable contributor in an Arial Narrow equivalent font with
a font size of at least 10-point for advertisements smaller than 93
square inches and at least 12-point for advertisements that are
equal to, or larger than, 93 square inches.

end insert begin insert

(A) If the advertisement is 4 inches tall or less, it need only show
the names of the identifiable contributors who have made the two
largest cumulative contributions.

end insert begin insert

(B) If the advertisement is 3 inches tall or less, it need only show
the name of the identifiable contributor who made the largest
cumulative contribution, and the text required by paragraph (2)
may say “Top Funder of This Ad.”

end insert begin delete

(5)

end delete

begin insert (4) end insert  Immediately below the text described in paragraph begin delete (4) end delete begin insert (3) end insert ,
the text begin delete “Full Funding end delete begin insert end insert begin insert “Funding end insert Details At [insert Internet Web
site address of the begin delete campaign end delete disclosure Internet Web site].” The
text shall be in an Arial Narrow equivalent font with at least
10-point font size for begin delete pages end delete begin insert advertisements end insert smaller than begin delete 8.5 inches
by 11 end delete begin insert 93 square end insert inches and at least 12-point font size for begin delete pages end delete
begin insert advertisements end insert that are equal to, or larger than, begin delete 8.5 inches by 11 end delete
begin insert 93 square end insert inches. begin insert This text shall not be required if the
advertisement is 5 inches tall or less. end insert

begin delete

(6)

end delete

begin insert (5) end insert  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.

begin delete

(7)

end delete

begin insert (6) end insert  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 begin delete 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 end delete begin insert political advertisement does not
have cumulative contributions that meet or exceed the end insert disclosure
threshold.

SEC. 12.  

Section 84506.3 is added to the Government Code,
to read:

84506.3.  

begin delete Except for a end delete begin insert A end insert committee that begin delete is controlled by a
candidate and that is paying for end delete begin insert has paid for political end insert
advertisements begin delete in support of the candidate, a committee end delete begin insert and that
has received cumulative contributions that meet or exceed the
disclosure threshold end insert shall establish and maintain a begin delete separate
campaign end delete disclosure Internet Web site begin delete 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 end delete . If the begin delete campaign end delete begin insert committee end insert
has an Internet Web site begin delete homepage end delete , that Internet Web site may
also serve as the begin delete campaign end delete disclosure Internet Web site. The
homepage of the begin delete campaign end delete begin insert disclosure Internet Web site and any
landing pages that visitors are directed to on the end insert disclosure Internet
Web site and any other Internet Web sites maintained by the
committee shall include a disclosure begin delete statement end delete area begin delete for the purpose
of making a contribution disclosure statement end delete that satisfies all of
the following:

(a) The disclosure begin delete statement end delete area shall be at least 250 pixels
wide begin insert and visible upon landing on the Internet Web site’s homepage end insert .
The disclosure begin delete statement end delete area shall have a white background and
a border that is dark in color.

(b)  begin delete If the campaign involves one or more ballot measures, the
disclosure statement end delete begin insert The disclosure area end insert shall include the text
“Top Funders of This begin delete 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 end delete
begin insert Committee” located end insert at the top of the disclosure begin delete statement end delete area and
centered horizontally in the disclosure begin delete statement end delete 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 begin delete statement end delete begin insert area end insert shall include a list of the identifiable
contributors who have made the 10 largest begin delete earmarked original end delete
begin insert cumulative end insert contributions to the committee. Each begin delete of the 10 end delete
identifiable begin delete contributors end delete begin insert contributor end insert shall be disclosed on a separate
begin delete vertical end delete begin insert horizontal end insert line, in descending order, beginning with the
identifiable contributor who made the largest cumulative
begin delete contribution end delete begin insert contributions end insert 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.

begin delete

(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.

end delete begin delete

(e)

end delete

begin insert (d) end insert  (1) The disclosure begin delete statement end delete begin insert area end insert shall include a hyperlink
to another page on the begin delete campaign end delete disclosure Internet Web site that
lists all of the begin delete campaign’s end delete begin insert committee’s end insert 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 begin delete committee end delete disclosure Internet
Web site shall have a title that reads “Large Funders of this
begin delete Campaign.” end delete begin insert Committee. end insert begin insert ” end insert The linked page shall disclose each
identifiable contributor of the committee on a separate begin delete vertical end delete
begin insert horizontal end insert line, in descending order, beginning with the identifiable
contributor that had the largest begin delete earmarked original end delete begin insert cumulative end insert
contribution on the first line. Each line shall show the name of the
identifiable contributor and the amount of its begin delete earmarked original end delete
begin insert cumulative end insert contributions, current within three begin insert business end insert days. These
disclosures shall be clear and shall be the only content on the page
other than the begin delete campaign end delete disclosure Internet Web site’s standard
navigation features.

begin delete

(f)

end delete

begin insert (e) end insert  If there are fewer than 10 identifiable contributors, the
disclosure begin delete statement end delete begin insert area end insert shall be adjusted accordingly to disclose
the qualifying identifiable contributors, if any. If the committee
does not have any identifiable contributors, the disclosure begin insert area end insert
shall be adjusted to include the name of the committee in place of
the names of identifiable contributors.

begin insert

(f) Every page of an Internet Web site maintained by a committee
that has paid for political advertisements and that has cumulative
contributions that meet or exceed the disclosure threshold shall
include the statement “Paid for by [name of the committee that
paid for the advertisement]” and any other identifying information
specified by the Commission. The text shall have a solid white
background so as to be easily legible, and shall be in a printed or
drawn box on the bottom of the page that is set apart from any
other printed matter. The text shall be black in color in an Arial
Narrow equivalent font and shall be at least 8-point font size.

end insert

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 begin insert political end insert 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
begin delete earmarked original end delete begin insert cumulative end insert contributions begin delete to the campaign end delete 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 begin delete campaign end delete disclosure Internet Web site.

SEC. 14.  

Section 84506.5 of the Government Code is repealed.

begin insert

begin insert SEC. 14.5. end insert   

end insert

begin insert Section 84506.5 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84506.5. end insert   

The Commission shall promulgate regulations to
require disclosure of the name of the committee, if feasible, on all
advertisements that are paid for by a candidate-controlled
committee and that are advertisements relating to the candidate’s
own election and not for any other campaign.

end insert

SEC. 15.  

Section 84507 of the Government Code is repealed.

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 begin delete earmarked original end delete begin insert cumulative end insert
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. begin insert If the identifiable
contributor is not employed, no occupation or employer shall be
listed. end insert

(b) If the committee receiving the begin delete earmarked original end delete begin insert cumulative end insert
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. begin delete 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. end delete

begin delete

(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.

end delete begin insert

(c) If the employer of an identifiable contributor is also an
identifiable contributor of that committee, the cumulative
contributions of its employees shall be deemed to be cumulative
contributions by the employer for purposes of determining which
identifiable contributors shall be disclosed on an advertisement
pursuant to this article. This subdivision does not apply to an
employee whose cumulative contributions amount to more than
75 percent of the cumulative contributions of the employer.

end insert

SEC. 17.  

Section 84508 of the Government Code is repealed.

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.

begin insert

(b) If this article requires the disclosure of the name of an
identifiable contributor that is a sponsored committee, the name
of the committee’s sponsoring organization shall be disclosed.

end insert begin delete

(b)

end delete

begin insert (c) end insert  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.

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
begin delete after a statement is filed pursuant to Section 84554 end delete , the disclosure
in the advertisement shall be updated as follows:

(a) A television, radio, or other electronic media begin insert political end insert
advertisement shall be updated to reflect the new ordering of
identifiable contributors within begin delete three calendar end delete begin insert seven business end insert days begin insert ,
or five business days if the change in the order of identifiable
contributors occurs within 30 days of an election end insert .

(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.

begin delete

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.

end delete

begin delete SEC. 22. end delete
begin insert SEC. 21. end insert   

Section 85310 of the Government Code is amended
to read:

85310.  

(a) A person who makes a payment or a promise of
payment totaling ten thousand dollars ($10,000) or more for a
communication that clearly identifies a candidate for elective
office, but does not expressly advocate the election or defeat of
the candidate, and that is disseminated, broadcast, or otherwise
published 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 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) 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.

begin delete SEC. 23. end delete
begin insert SEC. 22. end insert   

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.

begin delete SEC. 24. end delete
begin insert SEC. 23. end insert   

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.