Amended in Assembly June 18, 2014

Amended in Senate May 16, 2013

Amended in Senate May 7, 2013

Amended in Senate April 24, 2013

Amended in Senate April 1, 2013

Senate Bill No. 52

Introduced by Senators Leno and Hill

(Principal coauthors: Senators Correa and DeSaulnier)

(Principal coauthor: Assembly Member Fong)

(Coauthors: Senators Block, Hancock, and Wolk)

(Coauthors: Assembly Members Ammiano begin insert , Buchanan, end insert and Wieckowski)

December 20, 2012

An act to amend Sections 84505 begin delete and 85310 end delete begin insert , 84506, and 84508 end insert of, to add begin delete Sections 84506.1, 84506.2, 84506.3, and 84506.4 end delete begin insert Sections 84503.1, 84503.2, 84503.3, 84503.4, and 84503.5 end insert to, to repeal Sections 84502 begin delete , 84503, end delete and 84504 of, and to repeal and add Sections 84501, begin delete 84506, 84506.5, 84508, and 84509 end delete begin insert 84502, and 84503 end insert 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 begin delete the end delete begin insert a end insert disclosure statement begin delete requirements end delete begin insert requirement end insert relating to advertisements for or against any ballot measure paid for begin delete by any person whose cumulative contributions are $50,000 and advertisements paid for by an independent expenditure end delete begin insert by a committee end insert . The bill would impose new disclosure statement requirements for political advertisements begin insert regarding a ballot measure end insert that are radio advertisements, prerecorded telephonic messages, television or video advertisements, or mass mailing or print advertisements that would require the identification of identifiable contributors, ballot measures, and other funding details, as specified. begin delete The bill would also require a committee, in prescribed circumstances, to establish and maintain a disclosure Internet Web site for the purpose of making a contribution disclosure statement. 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.

begin delete

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.

end delete begin delete

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.

end delete begin insert

Existing law creates the Fair Political Practices Commission, and gives it primary responsibility for the impartial, effective administration and implementation of the Political Reform Act of 1974.

end insert begin insert

The bill would require the Fair Political Practices Commission to promulgate regulations related to the reporting and tracking of funds transferred by an identifiable contributor to committees and persons by January 1, 2016. The bill would authorize the Commission to promulgate regulations to require disclosures on all forms of advertisements regarding ballot measures not covered by the act, as specified.

end insert

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.

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

The Legislature finds and declares all of the following:

end insert begin insert

(a) Ever-increasing amounts of funds are raised and spent in
support of and opposition to state and local ballot measures,
especially in the form of advertisements. The outcomes of such
elections are disproportionately impacted by whichever side is
able to raise and spend the most money to advance its position.

end insert begin insert

(b) Ever-increasing amounts of funds are spent on campaigns
by persons who do one or more of the following:

end insert begin insert

(1) Frequently use their wealth to fund local and state ballot
measures designed to advance their own economic interests.

end insert begin insert

(2) Increasingly avoid having their identities disclosed in
election-related advertisements by channeling funds through one
or more persons before those funds are received by a committee,
thereby undermining the purpose and intent of laws requiring
disclosure on such advertisements.

end insert begin insert

(3) Spend extraordinary amounts of money running
election-related advertisements while hiding behind dubious and
misleading names, including, but not limited to, advertisements
by primarily formed committees and general purpose committees.

end insert begin insert

(4) Increasingly evade disclosure by funding advertisements
designed to persuade voters without expressly advocating support
or opposition.

end insert begin insert

(c) The activities described in subdivision (b) cause the public
to become increasingly disaffected with the democratic process,
discouraging participation in elections and coloring public
perceptions of the legitimacy and integrity of state and local
government.

end insert begin insert

(d) The people of California and their government officials have
a compelling interest in knowing the true and original source of
committee funding and receiving clear information identifying the
largest original contributors responsible for political
advertisements funded by such committees.

end insert begin insert

(e) The disclosure of original contributors on advertisements
serves the following important governmental and societal purposes:

end insert begin insert

(1) Providing the people and government officials current and
easily accessible information regarding who is funding
advertisements that are intended to influence their votes on ballot
measures.

end insert begin insert

(2) Enabling the people and government officials to identify
potential bias in advertisements to assist them in making more
informed decisions and giving proper weight to different speakers
and messages.

end insert begin insert

(3) Deterring actual corruption and avoiding the appearance
of corruption by providing increased transparency of contributions
and expenditures.

end insert begin insert

(4) Improving the people’s confidence in the democratic process
and increasing their motivation to actively participate in that
process by regular voting and other forms of civic engagement.

end insert begin insert

(5) Promoting compliance with and detecting violations of the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000) of the Government Code), while also addressing the
problems and advancing the state interests described in that act.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 84501 of the Government Code is repealed.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

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 begin delete a end delete begin insert any end insert general or public
begin delete advertisement end delete begin insert communication end insert that is begin delete any end delete begin insert either end insert of the following:

(A) Authorized and paid for by a begin delete person or end delete committee for the
purpose of supporting or opposing a candidate for elective office
begin delete or a ballot measure or ballot measures end delete .

(B)  begin delete An electioneering end delete begin insert A ballot measure advocacy end insert
communication begin insert supporting or opposing the qualification, passage,
or defeat of a ballot measure end insert .

begin delete

(C) An issue advocacy advertisement.

end delete

(2) “Advertisement” does not include begin delete 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. end delete begin insert any of the following: end insert

begin insert

(A) A communication from an organization, other than a
political party, to its members.

end insert begin insert

(B) A campaign button smaller than 10 inches in diameter; a
bumper sticker smaller than 60 square inches; or a small tangible
promotional item, including, but not limited to, a pen, pin, or key
chain, upon which the disclosures required by this article cannot
be conveniently printed or displayed.

end insert begin insert

(C) Clothing apparel.

end insert begin insert

(D) Sky writing.

end insert begin insert

(E) An electronic media communication, if inclusion of the
disclosures required by this article is impracticable or would
severely interfere with the committee’s ability to convey the
intended message because of the nature of the technology used to
make the communication.

end insert begin insert

(F) Any other communication as determined by regulations of
the Commission.

end insert

(b) “Cumulative contributions” means the cumulative amount
of contributions received by a committee beginning begin delete 18 end delete begin insert 12 end insert months
prior to the date the committee made its first expenditure for begin delete a
political advertisement or for end delete the purpose of begin delete qualifying, supporting, end delete
begin insert supporting end insert or opposing a candidate for elective office or begin delete a ballot
measure end delete begin insert for the purpose of qualification, passage, or defeat of a
ballot measure, and ending seven days before the time the
advertisement is disseminated or broadcast end insert .

begin delete

(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 delete begin delete

(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 delete begin delete

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

end delete begin delete

(f)

end delete

begin insert (c) end insert  “Identifiable contributor” means a person that is the original
source of begin insert funds for end insert contributions received by a committee that
cumulatively begin delete meet or exceed the disclosure threshold end delete begin insert total fifty
thousand dollars ($50,000) or more end insert , notwithstanding the fact that
the contributions were transferred, in whole or in part, through one
or more other committees or persons.

begin delete

(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:

(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.

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

(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.

(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 delete

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 84502 of the Government Code is repealed.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 84502 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84502. end insert   

On or before January 1, 2016, the Commission shall
promulgate regulations, in furtherance of the purposes of this
article, related to the reporting and tracking of funds transferred
by an identifiable contributor to committees and other persons.

end insert

begin delete SEC. 5. end delete
begin insert SEC. 7. end insert   

Section 84503 of the Government Code is repealed.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 84503 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84503. end insert   

(a) An advertisement regarding a ballot measure,
disseminated by a political party or candidate-controlled
committee, that is a radio advertisement or prerecorded telephonic
message shall include a disclosure statement at the beginning or
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: “Paid for by [name of the
committee that paid for the advertisement].”

(b) (1) An advertisement regarding a ballot measure,
disseminated by a committee other than a political party or
candidate-controlled committee, that is a radio advertisement or
prerecorded telephonic message shall include a disclosure
statement at the beginning or 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: “This ad has
major funding from [state names in descending order of identifiable
contributors who have made the two largest cumulative
contributions to the committee that paid for the advertisement].
Paid for by [name of the committee that paid for the
advertisement].”

(2) If there is only one identifiable contributor or the
advertisement lasts 15 seconds or less, the disclosure statement
required by paragraph (1) shall be adjusted to read as follows:
“This ad has major funding from [state name of identifiable
contributor who made the largest cumulative contributions to the
committee that paid for the advertisement]. Paid for by [name of
the committee that paid for the advertisement].”

(3) If there are no identifiable contributors to the committee
that paid for the advertisement, the advertisement may replace the
disclosure statement required by paragraph (1) with the following:
“Paid for by [name of the committee that paid for the
advertisement].”

(4) If the content of the advertisement names each of the
identifiable contributors required to be named pursuant to
paragraphs (1) and (2) as top funders of the advertisement, it may
replace the disclosure statement required by paragraph (1) with
the following: “Paid for by [name of the committee that paid for
the advertisement].”

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 84503.1 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84503.1. end insert   

(a) An advertisement regarding a ballot measure,
disseminated by a political party or candidate-controlled
committee, that is a television or video advertisement shall include
a disclosure area with a solid black background on the entire
bottom one-third of the television or video display screen at the
beginning or end of the advertisement for a minimum of five
seconds in the case of an advertisement that lasts 30 seconds or
less or a minimum of 10 seconds in the case of an advertisement
that lasts longer than 30 seconds. The disclosure area shall include
the following text: “Paid for by [name of the committee that paid
for the advertisement].” The text shall be in a contrasting color
in Arial Narrow equivalent type, and the type size shall be at least
4 percent of the height of the television or video display screen
and shall be centered horizontally.

(b) An advertisement regarding a ballot measure, disseminated
by a committee other than a political party or candidate-controlled
committee, that is a television or video advertisement shall include
a disclosure area with a solid black background on the entire
bottom one-third of the television or video display screen at the
beginning or end of the advertisement for a minimum of five
seconds in the case of an advertisement that lasts 30 seconds or
less or a minimum of 10 seconds in the case of an advertisement
that lasts longer than 30 seconds. The disclosure area shall include
all of the following:

(1) The text “Ad Paid for by a Committee whose Top Funders
are:”. The text shall be located at the top of the disclosure area
and centered horizontally, shall be in a contrasting color in Arial
Narrow equivalent type, and the type size shall be at least 4 percent
of the height of the television or video display screen.

(2) Immediately below the text described in paragraph (1), the
names of the identifiable contributors who have made the three
largest cumulative contributions to the committee that paid for the
advertisement. 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 be in a contrasting color in Arial Narrow equivalent
type, and the type size shall be at least 4 percent of the height of
the television or video display screen.

(3) The text “Funding Details At [insert Commission Internet
Web site address with information required to be posted pursuant
to Section 84223].” The text shall be in a contrasting color in
Arial Narrow equivalent type, and the type size shall be at least
2.5 percent of the height of the television or video display screen.
The text shall be right-aligned and located in a position that is at
least 2.5 percent of the height of the television or video display
screen away from the bottom right of the television or video display
screen.

(4) The text “Paid for by [name of the committee that paid for
the advertisement].” The text shall be in a contrasting color in
Arial Narrow equivalent type, and the type size shall be at least 4
percent of the height of the television or video display screen. The
text shall be left-aligned and located in a position that is vertically
at least 2 percent of the height of the television or video display
screen away from the bottom left of the television or video display
screen.

(5) If there are fewer than three identifiable contributors to the
committee that paid for the advertisement, the disclosure statement
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
text required by paragraph (1) shall be adjusted to read “Ad Paid
for by” and the name of the committee shall be printed immediately
below it, centered horizontally. The text shall be in a contrasting
color in Arial Narrow equivalent type, and the type size shall be
at least 4 percent of the height of the television or video display
screen.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 84503.2 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84503.2. end insert   

(a) An advertisement regarding a ballot measure,
disseminated by a political party or candidate-controlled
committee, that is a mass mailing or a print advertisement designed
to be distributed personally shall include a disclosure area on the
outside display surface of the mass mailing or print advertisement
that reads as follows: “Paid for by [name of the committee that
paid for the advertisement].” The text shall be in an Arial Narrow
equivalent type with a type size of at least 10-point in a color or
print that contrasts with the background so that it is easily read.

(b) An advertisement regarding a ballot measure, disseminated
by a committee other than a political party or candidate-controlled
committee, that is a mass mailing or a print advertisement designed
to be distributed personally shall include a disclosure area on the
largest page of the mass mailing or print advertisement that
satisfies all of the following requirements:

(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. The
text in the disclosure area shall be written in the same direction
as the text or graphics on the majority of the page that has the
disclosure.

(2) The text “Ad Paid for by a Committee whose Top Funders
are” shall be located at the top of the disclosure area and centered
horizontally in the disclosure area. The text shall be in an Arial
Narrow equivalent type with a type size of at least 12-point for
advertisements smaller than 93 square inches and at least 14-point
for advertisements that are equal to, or larger than, 93 square
inches.

(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 to the committee that paid
for the advertisement. 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 type with a type 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.

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

(B) If the advertisement is three inches tall or less, it need only
show the name of the identifiable contributor who made the largest
cumulative contributions, and the text required by paragraph (2)
shall read “Ad Paid for by a Committee whose Top Funder is.”

(4) Immediately below the text described in paragraph (3), the
text “Funding Details At [insert Commission Internet Web site
address with information required to be posted pursuant to Section
84223].” The text shall be in an Arial Narrow equivalent type with
at least 10-point type size for advertisements smaller than 93
square inches and at least 12-point type size for advertisements
that are equal to, or larger than, 93 square inches. This text shall
not be required if the advertisement is five inches tall or less.

(5) The text “Paid for by [name of the committee that paid for
the advertisement]” shall be located at the bottom of the disclosure
area and shall be in an Arial Narrow equivalent type with at least
8-point type size for pages smaller than 8.5 inches and at least
10-point type size for pages that are equal to, or larger than, 8.5
inches by 11 inches.

(6) If there are fewer than three identifiable contributors to the
committee that paid for the advertisement, the disclosure shall be
adjusted accordingly to disclose the qualifying identifiable
contributors, if any. If the committee does not have any identifiable
contributors, the disclosures described in paragraphs (2) and (3)
are not required.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 84503.3 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84503.3. end insert   

The Commission may promulgate regulations to
require disclosures on all forms of advertisements regarding ballot
measures 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 cumulative contributions as possible in a conspicuous
manner, unless the committee that paid for the advertisement is a
political party or candidate-controlled committee, in which case
only the name of the committee must be shown. This disclosure
area shall occupy no more than 10 percent of the advertisement.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 84503.4 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84503.4. end insert   

(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.

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

(c) If the identifiable contributor is the parent of a subsidiary
corporation whose economic interest is more directly impacted
than the parent by a measure that is the subject of the
advertisement, then the subsidiary’s name shall be disclosed.
Disclosure of the parent’s name is optional, but shall not replace
the required disclosure of other identifiable contributors otherwise
required by this article.

(d) All disclosure text required by this article shall be displayed
in the capitalization shown in this article, such as “Ad Paid for
by a Committee whose Top Funders are”. Names of identifiable
contributors and committees shall be displayed in title
capitalization (e.g. “John Smith“), except for names that are
acronyms (e.g. “ACME Hunting Supplies”).

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 84503.5 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84503.5. end insert   

If the order of the identifiable contributors required
to be displayed in an advertisement pursuant to this article
changes, 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 seven business days, or five business days if
the change in the order of identifiable contributors occurs within
30 days of an election.

(b) A print media advertisement, including non-electronic
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.

end insert

begin delete SEC. 6. end delete
begin insert SEC. 14. end insert   

Section 84504 of the Government Code is repealed.

begin delete SEC. 7. end delete
begin insert SEC. 15. end insert   

Section 84505 of the Government Code is amended
to read:

84505.  

In addition to the requirements of Sections begin delete 84506,
84506.1, 84506.2, 84506.3, 84506.4, and 84506.5 end delete begin insert 84503, 84503.1,
84503.2, and 84503.3 end insert , the committee begin delete placing the end delete begin insert paying for an end insert
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.

begin delete

SEC. 8.  

Section 84506 of the Government Code is repealed.

SEC. 9.  

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

84506.  

(a) A political advertisement that is a radio
advertisement or prerecorded telephonic message 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 cumulative contributions]. Paid
for by [name of the committee that paid for the advertisement].”

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

(c) If there is only one identifiable contributor or the
advertisement lasts 15 seconds or less, the disclosure required by
subdivision (a) shall be adjusted to read as follows: “Top funder
of this ad is [state name of identifiable contributor who made the
largest cumulative contributions]. Paid for by [name of the
committee that paid for the advertisement].”

(d)

 
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 subdivision (a) with the
following: “Paid for by [name of the committee that paid for the
advertisement].”

(e) If the advertisement names each of the identifiable
contributors required to be named pursuant to subdivisions (a) to
(c), inclusive, and identifies the speaker as speaking on behalf of
them, it may replace the disclosure required by subdivision (a)
with the following: “Paid for by [name of the committee that paid
for the advertisement].”

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

SEC. 10.  

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

84506.1.  

(a) A political advertisement that is a television or
video advertisement shall include a disclosure area with a solid
black background on the entire bottom one-third of the television
or video display screen at the beginning of the advertisement for
a minimum of five seconds in the case of an advertisement that
lasts 30 seconds or less or a minimum of 10 seconds in the case
of an advertisement that lasts longer than 30 seconds. The
disclosure area shall include all of the following:

(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 type, and the type size shall
be at least 4 percent of the height of the television or video display
screen.

(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 type and
the type size shall be at least 4 percent of the height of the
television or video display screen.

(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 type and the type 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.

(4) 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 type and the type size shall be equivalent to
2.5 percent of the height of the television or video display screen.
The text shall be right-aligned and located in a position that is
vertically 2.5 percent of the height of the television or video display
screen away from the bottom right of the television or video display
screen.

(5) 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.

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

SEC. 11.  

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

84506.2.  

(a) Except for slate mailers, a political advertisement
that is a mass mailing or a print advertisement and that is 12 square
inches or more in size 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 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.

(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 type with a type size
of at least 12-point for advertisements smaller than 93 square inches
and at least 14-point for advertisements that are equal to, or larger
than, 93 square inches.

(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 type with a type 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.

(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.

(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.”

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

(5) 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 type
with at least 8-point type size for pages smaller than 8.5 inches
and at least 10-point type size for pages that are equal to, or larger
than, 8.5 inches by 11 inches.

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

SEC. 12.  

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

84506.3.  

A committee that has paid for political advertisements
and that has received cumulative contributions that meet or exceed
the disclosure threshold shall establish and maintain a disclosure
Internet Web site. If the committee has an Internet Web site, that
Internet Web site may also serve as the disclosure Internet Web
site. The homepage of the disclosure Internet Web site and any
landing pages that visitors are directed to on the disclosure Internet
Web site and any other Internet Web sites maintained by the
committee shall include a disclosure area that satisfies all of the
following:

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

(b) The disclosure area shall include the text “Top Funders of
This Committee” located at the top of the disclosure area and
centered horizontally in the disclosure area. The text shall be black
in color in an Arial equivalent type and shall be at least 10-point
type size.

(c) Immediately below the text described in subdivision (b), the
disclosure area shall include a list of the identifiable contributors
who have made the 10 largest cumulative contributions to the
committee. Each identifiable contributor shall 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 text shall be black in color in
an Arial Narrow equivalent type and shall be at least 9-point type
size.

(d) (1) The disclosure area shall include a hyperlink to another
page on the disclosure Internet Web site that lists all of the
committee’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 type in at least 9-point
type size.

(2) The hyperlinked page on the disclosure Internet Web site
shall have a title that reads “Large Funders of this Committee.”
The linked page shall disclose each identifiable contributor of the
committee on a separate horizontal line, in descending order,
beginning with the identifiable contributor that had the largest
cumulative contribution on the first line. Each line shall show the
name of the identifiable contributor and the amount of its
cumulative contributions, current within three business days. These
disclosures shall be clear and shall be the only content on the page
other than the disclosure Internet Web site’s standard navigation
features.

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

(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 type and shall be at least
8-point type size.

  

SEC. 13.  

Section 84506.4 is added to the Government Code,
to read:

84506.4.  

The Commission may promulgate regulations to
require disclosures on all forms of political 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
cumulative contributions 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 disclosure Internet Web site.

SEC. 14.  

Section 84506.5 of the Government Code is repealed.

SEC. 15.  

Section 84506.5 is added to the Government Code,
to read:

84506.5.  

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 delete

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 84506 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

84506.  

(a) An advertisement supporting or opposing a
begin delete candidate or ballot measure, end delete begin insert candidate, end insert 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.

begin delete

SEC. 16.  

Section 84507 of the Government Code is repealed.

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.

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

(c) 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.

end delete

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 84508 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

84508.  

If disclosure of two major donors is required by begin delete Sections
84503 and end delete begin insert Section end insert 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.

begin delete

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,
the disclosure in the advertisement shall be updated as follows:

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

(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.  

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.

end delete

begin delete SEC. 22. end delete
begin insert SEC. 18. 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. 23. end delete
begin insert SEC. 19. 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.