BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 52
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          Date of Hearing:   June 24, 2014

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                  SB 52 (Leno and Hill) - As Amended:  June 18, 2014

           SENATE VOTE  :   28-11
           
          SUBJECT  :   Political Reform Act of 1974: campaign disclosures.

           SUMMARY  :   Changes the content and format of disclosure  
          statements required on advertisements supporting or opposing  
          ballot measures.  Specifically,  this bill  :   

          1)Repeals existing requirements governing disclaimers and  
            disclosure statements that must appear on campaign  
            advertisements relating to ballot measures, including all of  
            the following:

             a)   A requirement that an advertisement for or against a  
               ballot measure include a disclosure statement identifying  
               the two highest cumulative contributors of $50,000 or more  
               to the committee funding the advertisement;

             b)   A requirement that a committee that supports or opposes  
               one or more ballot measures must name and identify itself  
               using a name or phrase that clearly identifies the economic  
               or other special interest of its major donors of $50,000 or  
               more in any reference to the committee required by law;  
               and,

             c)   A requirement that an advertisement supporting or  
               opposing a ballot measure that is paid for by an  
               independent expenditure (IE) must include a disclosure  
               statement identifying the name of the committee making the  
               expenditure and the names of the persons from whom the  
               committee making the IE received its two highest cumulative  
               contributions of $50,000 or more during the 12-month period  
               prior to the expenditure.

          2)Requires an advertisement regarding a ballot measure that is  
            disseminated by a political party or candidate-controlled  
            committee to include a disclosure statement that reads as  
            follows:








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          "Paid for by [name of the committee that paid for the  
            advertisement]."

          3)Requires an advertisement regarding a ballot measure that is  
            disseminated by a committee other than a political party or  
            candidate controlled committee to include a disclosure  
            statement in accordance with the following:

             a)   In the case of a radio advertisement or a prerecorded  
               telephonic message, the disclosure statement shall read 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]."

               i)     Provides that only one identifiable contributor is  
                 required to be included in a disclosure statement if  
                 there is only one identifiable contributor to the  
                 committee that paid for the ad or if the ad lasts 15  
                 seconds or less.

               ii)    Provides that if there are no identifiable  
                 contributors to the committee that paid for the ad, or if  
                 the content of the ad names each of the identifiable  
                 contributors required to be named in the disclosure  
                 statement, the ad may include only the following sentence  
                 of the disclosure statement:

               "Paid for by [name of the committee that paid for the  
                 advertisement]."

             b)   In the case of a television or video advertisement, the  
               disclosure statement shall read as follows:

             Ad Paid for by a Committee whose Top Funders are: 

               1. [Identifiable contributor who made the largest  
               contribution to the committee]
               2. [Identifiable contributor who made the second largest  
               contribution to the committee]
               3. [Identifiable contributor who made the third largest  
               contribution to the committee]







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               Funding Details At: [website containing contributor  
               information].

               Paid for by [name of the committee that paid for the  
               advertisement].

             c)   In the case of a mass mailing or print advertisement  
               designed to be distributed personally, the disclosure  
               statement shall read as follows:

             Ad Paid for by a Committee whose Top Funders are: 

             1. [Identifiable contributor who made the largest  
               contribution to the committee]
             2. [Identifiable contributor who made the second largest  
               contribution to the committee]
             3. [Identifiable contributor who made the third largest  
               contribution to the committee]

             Funding Details At: [website containing contributor  
               information].

             Paid for by [name of the committee that paid for the  
               advertisement].

               i)     Provides that if the advertisement is five inches  
                 tall or less, it does not need to include the "Funding  
                 Details" line.

               ii)    Provides that if the advertisement is four inches  
                 tall or less, it needs to include only the two top  
                 funders, instead of the three top funders.

               iii)   Provides that if the advertisement is three inches  
                 tall or less, it needs to include only the top funder,  
                 instead of the three top funders.

          4)Imposes the following requirements on the disclosure  
            statements required by this bill:

             a)   In the case of a radio advertisement or prerecorded  
               telephonic message, the statement must be at the beginning  
               or end of the advertisement, read in a clearly spoken  
               manner and in a pitch and tone substantially similar to the  







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               rest of the advertisement.

             b)   In the case of a television or video advertisement, the  
               statement must be included in a disclosure area with a  
               solid black background on the entire bottom one-third of  
               the screen at the beginning or end of the advertisement for  
               a minimum of five seconds in the case of an advertisement  
               lasting 30 seconds or less, or for a minimum of 10 seconds  
               in the case of an advertisement lasting longer than 30  
               seconds.

             c)   In the case of a mass mailing or print advertisement  
               designed to be distributed personally:

               i)     In the case of an advertisement disseminated by a  
                 political party or candidate-controlled committee, the  
                 statement must be included in a disclosure area on the  
                 outside display surface of the advertisement; and,

               ii)    In the case of an advertisement disseminated by a  
                 committee other than a political party or  
                 candidate-controlled committee, the statement must be  
                 included in a disclosure area on the largest page of the  
                 advertisement with a solid white background with black  
                 text.  

          5)Specifies requirements for the size, color, and placement of  
            the text of disclosure statements required by this bill.

          6)Provides that the disclosure of the name of an identifiable  
            contributor under this bill does not need to include legal  
            terms such 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.

          7)Provides that if this bill requires 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.

          8)Provides that if an identifiable contributor that is required  
            to be included in a disclosure statement pursuant to this bill  
            is the parent of a subsidiary corporation whose economic  
            interest is more directly impacted than the parent by a  







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            measure that is the subject of the advertisement, then the  
            subsidiary's name shall be disclosed.

          9)Defines the following terms, for the purposes of this bill:

             a)   "Advertisement" to mean any general or public  
               communication that is either of the following:

               i)     Authorized and paid for by a committee for the  
                 purpose of supporting or opposing a candidate for  
                 elective office; or,

               ii)    A ballot measure advocacy communication supporting  
                 or opposing the qualification, passage, or defeat of a  
                 ballot measure.

             b)   Provides that the term "advertisement" does not include  
               any of the following:

               i)     A communication from an organization, other than a  
                 political party, to its members;

               ii)    A campaign button smaller than 10 inches in  
                 diameter; a bumper sticker smaller than 60 square inches;  
                 or a small tangible promotional item such as a pen, pin,  
                 or key chain, upon which the disclosures required by law  
                 cannot be conveniently printed or displayed;

               iii)   Clothing apparel;

               iv)    Sky writing;

               v)     An electronic media communication, if inclusion of  
                 disclosures 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; or,

               vi)    Any other advertisement as determined by regulations  
                 of the Fair Political Practices Commission (FPPC).

             c)   "Cumulative contributions" to mean the cumulative amount  
               of contributions received by a committee beginning 12  
               months prior to the date the committee made its first  
               expenditure for the purpose of supporting or opposing a  







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               candidate for elective office or 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. 

             d)   "Identifiable contributor" to mean a person that is the  
               original source of funds for contributions received by a  
               committee that cumulatively total $50,000 or more,  
               notwithstanding the fact that the funds were transferred,  
               in whole or in part, through one or more other committees  
               or persons.  

          10)Requires the FPPC, not later than January 1, 2016, to  
            promulgate regulations related to the reporting and tracking  
            of funds transferred by an identifiable contributor to  
            committees and other persons.

          11)Requires disclosure statements to be updated to reflect any  
            changes in the order of identifiable contributors as follows:

             a)   In the case of television, radio, or other electronic  
               media advertisements, within seven business days, or within  
               five business days if the order of contributors changes  
               within 30 days of an election; and,

             b)   In the case of a print advertisement, including  
               non-electronic billboards, prior to placing a new or  
               modified order for additional printing of the  
               advertisement.

          12)Permits the FPPC to promulgate regulations to require  
            disclosures on all forms of advertisements regarding ballot  
            measures not covered by this bill, including electronic media  
            advertisements and billboards.  Requires the regulations, if  
            feasible, to 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.  Provides that the disclosure area may occupy no  
            more than 10 percent of the advertisement.

          13)Makes the following findings and declarations:








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             a)   Ever-increasing amounts 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.

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

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

               ii)    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.

               iii)   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.

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

             c)   The activities described in (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.

             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.

             e)   The disclosure of original contributors on  
               advertisements serves the following important governmental  







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               and societal purposes:

               i)     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.

               ii)    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.

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

               iv)    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.

               v)     Promoting compliance with and detecting violations  
                 of the Political Reform Act (PRA), while also addressing  
                 the problems and advancing the state interests described  
                 in the PRA.

          14)Makes technical and conforming changes.

           EXISTING LAW  :

          1)Creates the FPPC, and makes it responsible for the impartial,  
            effective administration and implementation of the PRA.

          2)Requires an advertisement for or against any ballot measure to  
            include a disclosure statement identifying any person whose  
            cumulative contributions are $50,000 or more.  Provides that  
            if there are more than two donors of $50,000 or more, the  
            disclosure only needs to include the highest and second  
            highest donors in that order.

          3)Requires a committee that supports or opposes one or more  
            ballot measures to name itself using a name or phrase that  
            identifies the economic or other special interest of its major  
            donors of $50,000 or more.  Provides that if the major donors  
            of $50,000 or more share a common employer, the identity of  







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            the employer must also be disclosed.

          4)Requires a broadcast or mass mailing advertisement supporting  
            or opposing a candidate or ballot measure that is paid for by  
            an IE to include a disclosure statement identifying the name  
            of the committee making the expenditure and the names of the  
            persons from whom the committee making the IE received its two  
            highest cumulative contributions of $50,000 or more during the  
            12-month period prior to the expenditure.

          5)Provides that when a disclosure of the top two donors is  
            required on an advertisement pursuant to either of the above  
            provisions, only the largest donor needs to be disclosed on an  
            advertisement that is an electronic broadcast of 15 seconds or  
            less or a print advertisement of 20 square inches or less.

          FISCAL EFFECT  :   Unknown.  State-mandated local program;  
          contains a crimes and infractions disclaimer.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               Campaign spending has reached unprecedented levels in  
               recent years.  In 2012, over $475 million was spent on  
               ballot measures alone in California. Furthermore, many  
               ballot measure committees and general purpose  
               committees that contribute to them are purposely  
               established to disguise who exactly is funding the  
               campaign messages that voters see and hear, hiding  
               behind vague names such as "Californians for  
               Progress."  Money is often purposefully channeled  
               through multiple layers of committees or organizations  
               to make it harder to trace and disclose. As a result,  
               the March 2013 PPIC Poll found that 84% of all likely  
               voters, across political ideology, want increased  
               public disclosure of funding sources for signature  
               gathering and initiative campaigns.

               While it is essential for individuals and  
               organizations in a democracy to be able to communicate  
               effectively and efficiently with voters, it is equally  
               important that voters are not intentionally deceived  
               and elections are not decided upon misinformation. SB  
               52 will increase transparency of campaign spending in  







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               elections by disclosing major contributors on campaign  
               advertisements for and against ballot measures to  
               ensure that the true original contributors are known  
               by voters when they see the ads. SB 52 requires all  
               state and local ballot measure ads in California to  
               clearly and prominently list their top three original  
               funders of $50,000 or more in the case of television  
               and print ads, or top two funders in the case of radio  
               ads. Strengthening disclosure requirements on ballot  
               measure advertisements is necessary to help  
               Californians be better informed and feel more  
               represented by their government.

               Current law does not require disclosure of any major  
               funders for ads that clearly refer to ballot measures  
               that are meant to influence the public on their vote,  
               but that do not expressly advocate for their passage  
               or defeat. SB 52 resolves this loophole by requiring  
               clear and prominent disclosure of the top funders on  
               "ballot measure advocacy communications," which means  
               "an advertisement that is disseminated, broadcast, or  
               otherwise communicated within 45 days of the election  
               concerning a measure that clearly refers to the  
               measure and that a reasonable person would interpret  
               the overall message as being for or against the  
               measure."

               SB 52 will also ensure that the top contributors  
               disclosed on ballot measure advertisements are truly  
               the top three original funders of the advertisement,  
               not misleading committee or nonprofit names. Current  
               disclosure reporting law has a fundamental limitation  
               in that ballot measure ads must only show their direct  
               contributors that gave them money, not the original  
               contributors of that money - i.e., the original  
               individuals, corporations or unions that gave it. SB  
               52 ensures that ballot measure disclosure will follow  
               the money - no matter how many committees or other  
               persons funds are transferred through.

           2)Existing Political Advertising Disclaimers  :  Under the PRA,  
            committees must put "paid for by" disclaimers on campaign  
            advertising, including campaign mailers, radio and television  
            ads, telephone robocalls, and electronic media ads. The  
            following, which is based on a publication produced by the  







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            FPPC, discusses disclaimer requirements for committees that  
            purchase advertisements or circulate material supporting or  
            opposing a state or local candidate or ballot measure in  
            California.

          When is a disclaimer required on political ads or materials?  

           Political committees must include the following disclaimers:  
               
                Mass mailings, including blast campaign emails, must  
               include identification of the sender.

                Paid telephone calls must identify the candidate or  
               committee who paid for or authorized the call.

                Radio and television ads must include a "paid for by"  
               disclaimer under Federal Communications Commission (FCC)  
               law. 

                Ballot measure ads and independent expenditure ads must  
               include "paid for by committee name" and such ads by  
               primarily formed committees must also list top two donors  
               of $50,000 or more. This applies to television, radio, and  
               electronic media advertisements, robocalls, mass mailings,  
                                                                                             and print ads such as newspaper ads, billboards and yard  
               signs. 

            Are the PRA's disclaimer rules the same for all committees and  
            all ads? 
            
            No. Basic disclaimer rules apply to campaign materials  
            disseminated by a candidate for their own election campaign  
            because it is generally clear to the public that the candidate  
            is sending the communication. Stricter disclaimer rules apply  
            to (1) ballot measure advertisements and (2) independent  
            expenditure advertisements on candidates and ballot measures,  
            because it is less clear to the public who is responsible for  
            these ads. 

            What does the disclaimer have to state? 
            
            The basic disclaimer must state: "Paid for by committee name."  
            Ballot measure and independent expenditure ads paid for by  
            primarily formed committees must also list top two donors of  
            $50,000 or more and special committee name rules apply. All  







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            independent expenditure ads for or against a candidate must  
            state that the ad was: "Not authorized by a candidate or a  
            committee controlled by a candidate."

            How must the disclaimer appear? 

            Disclaimers on political ads and literature must be clear and  
            conspicuous so as to be understood by the intended public.  
            Written disclaimers must be printed clearly and legibly.  
            Spoken disclaimers must be clearly audible and intelligible.

            Updating a disclaimer 
            
            When a committee's name changes because of new top donors or  
            otherwise, advertisement disclaimers must be revised.  
            Television, radio, electronic media, or robocalls must be  
            amended within five calendar days. Print media, mass mailings,  
            or other tangible items must be amended every time an order to  
            reproduce is placed. 

            Advertisements in Languages Other than English 
            
            Disclaimers on political advertisements should be written or  
            spoken in the same language used in the advertisement. 

            Does a disclaimer have to appear on ALL printed materials or  
            campaign items? 
            
            No. A disclaimer is not required on regular-size campaign  
            buttons, pins, bumper stickers, or magnets. It is not required  
            on pens, pencils, rulers, mugs, potholders, key tags, golf  
            balls and similar small campaign promotional items where a  
            disclaimer cannot be conveniently printed. 

            The disclaimer is not required on t-shirts, caps, hats, and  
            other articles of clothing; skywriting and airplane banners;  
            or committee checks and receipts. 
             
          3)Constitutional Issues  :  This measure could be interpreted as a  
            violation of the United States and California Constitutions'  
            guarantees to free speech.  While the right to freedom of  
            speech is not absolute, when a law burdens core political  
            speech, the restrictions on speech generally must be "narrowly  
            tailored to serve an overriding state interest,"  McIntyre v.  
            Ohio Elections Commission  (1995), 514 US 334.







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          In  ACLU v. Heller  (2004), 378 F.3d 979, the Ninth Circuit Court  
            of Appeals struck down a Nevada law that required any  
            published material concerning a campaign to identify the  
            person paying for the publication.  In that case, the state of  
            Nevada argued that its law served three state interests,  
            including helping voters evaluate the usefulness of  
            information in a campaign communication, preventing fraud and  
            libel, and furthering enforcement of disclosure and  
            contribution election laws.  The court concluded that Nevada  
            failed to demonstrate that its statute was "narrowly tailored  
            to serve an overriding state interest" in accordance with the  
            test established in  McIntyre  .  The court did note in its  
            ruling, however, that "[a]n on-publication identification  
            requirement carefully tailored to further a state's campaign  
            finance laws, or to prevent the corruption of public  
            officials, could well pass constitutional muster."

          Additionally, supporters of this bill have argued that,  
            notwithstanding the decision in the  Heller  case, the  
            provisions of this bill nonetheless are constitutional in  
            light of disclosure requirements that were upheld by the  
            United States Supreme Court in  Citizens United v. Federal  
            Election Commission  (2010), 130 S.Ct. 876.  While the  Citizens  
            United case is probably best known as the case in which the  
            United States Supreme Court struck down a 63 year old law that  
            prohibited corporations and unions from using their general  
            treasury funds to make IEs in federal elections, in the same  
            case, the Court also upheld certain disclaimer and disclosure  
            provisions of the federal Bipartisan Campaign Reform Act  
            (BCRA) of 2002, also sometimes called "McCain-Feingold" for  
            its Senate authors.

          The  Citizens United  case involved a nonprofit corporation  
            (Citizens United) that sought to run television commercials  
            promoting a film it produced that was critical of then-Senator  
            and presidential candidate Hillary Clinton.  Because federal  
            law prohibited corporations and unions from using their  
            general treasury funds to make expenditures for  
            "electioneering communications" or for communications that  
            expressly advocated the election or defeat of a candidate,  
            Citizens United was concerned that the television commercials  
            promoting its film could subject the corporation to criminal  
            and civil penalties.  Under BCRA, the film produced by  
            Citizens United and the television commercials promoting that  







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            movie were subject to certain disclaimer and disclosure  
            requirements-specifically, a requirement that televised  
            electioneering communications must include a disclaimer  
            indicating the name of the person or organization that was  
            "responsible for the content" of the advertising.   
            Additionally, each communication was required to include a  
            statement that the communication was "not authorized by any  
            candidate or candidate's committee," and was required to  
            display the name and address of the person or group that  
            funded the advertisement.  Finally, under a different  
            provision of BCRA, any person who spent more than $10,000 in a  
            calendar year is required to file a disclosure statement with  
            the Federal Elections Commission (FEC) identifying the person  
            making the expenditure, the amount of the expenditure, the  
            election to which the communication was directed, and the  
            names of contributors in certain circumstances.

          Citizens United (the corporation) challenged these disclaimer  
            and disclosure requirements as applied to the film and the  
            television advertisements promoting that film.  Specifically,  
            Citizens United argued that the disclaimer and disclosure  
            requirements were unconstitutional on the grounds the  
            governmental interest in providing information to the  
            electorate did not justify requiring disclaimers for  
            commercial advertisements.  The court disagreed, finding that  
            the disclaimers provided the electorate with important  
            information, helping to ensure that voters were informed, and  
            "avoid[ed] confusion by making clear that the ads are not  
            funded by a candidate or political party."

          While some of the requirements of this bill are comparable to  
            provisions of federal law that were at issue in  Citizens  
            United  (for instance, certain disclaimer requirements included  
            in this bill are similar to those required under federal law  
            that were upheld by the court in  Citizens United  ), other  
            requirements in this bill go beyond what is required by  
            federal law, and beyond what was considered by the court in  
             Citizens United  .  Specifically, the provisions of this bill  
            that require the identities of certain campaign  
            contributors-entities that were not individually responsible  
            for the content or the production of the advertising-to be  
            included in campaign advertising go beyond what is required by  
            federal law.  In light of that fact, while the court in  
             Citizens United  did uphold certain federal disclaimer  
            requirements, it is unclear whether the broader requirements  







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            in this bill would similarly be upheld against a  
            constitutional challenge on the grounds that those  
            requirements violate the First Amendment.  
           
           4)Ballot Measure Advertisements Only  :  Unlike prior versions of  
            this bill, and of similar previous legislation (see below),  
            this bill does not apply to campaign advertisements related to  
            candidates.  The existing requirements that apply to those  
            advertisements would continue to apply to candidate ads under  
            this bill.  Instead, the new on-advertisement disclosure  
            requirements contained in this bill apply only to  
            advertisements related to ballot measures.  
           
           5)FPPC Discretion  :  This bill provides the FPPC with a  
            significant amount of discretion and authority to determine  
            how key portions of this bill will be implemented.  For  
            instance, this bill requires an advertisement to include the  
            name of a person who is "the original source of funds" for  
            contributions received by the committee that pays for the  
            advertisement, notwithstanding the fact that the funds were  
            transferred through one or more other committees or persons.   
            This bill does not, however, establish the methodology for  
            reporting and tracking of funds that are transferred through  
            committees so that the "original source of funds" can be  
            determined, but instead tasks the FPPC with developing  
            regulations to create such a methodology.

          Furthermore, this bill provides that if an identifiable  
            contributor that is required to be disclosed in a campaign  
            advertisement is the parent of a subsidiary corporation whose  
            economic interest is more directly impacted than the parent by  
            the ballot measure that is the subject of the advertisement,  
            then the subsidiary's name shall be disclosed on the  
            advertisement.  However, this bill does not define the term  
            "economic interest," nor does it establish a method for  
            determining which entity's economic interest would be more  
            directly impacted.  As a result, these details would need to  
            be determined by the FPPC through the adoption of regulations  
            or the issuance of advice.  

           6)Changes to Findings and Technical Amendments  :  In order to  
            ensure that one of the legislative findings in this bill more  
            precisely describes the research that has been submitted by  
            the author and sponsor of this bill, committee staff  
            recommends the following amendment:







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          On page 3, lines 7 to 8, strike out "whichever side is able to  
            raise and spend the most money to advance its position" and  
            insert:

              campaign expenditures in support of and in opposition to  
            these measures

              In addition, committee staff recommends the following  
            technical amendments to this bill:

              On page 11, line 19, strike out "8.5" and insert:

              93 square

              On page 11, lines 20-21, strike out "8.5 inches by 11" and  
            insert:

              93 square  
               
           7)Previous Legislation  :  This bill is similar to AB 1148  
            (Brownley) and AB 1648 (Brownley) from the 2011-2012  
            Legislative session.  AB 1148 was approved by this committee  
            by a 5-0 vote, but failed passage on the Assembly Floor.  AB  
            1648 was approved by this committee by a 4-2 vote, and was  
            approved on the Assembly Floor by a 50-26 vote, but was not  
            heard in the Senate.

          SB 27 (Correa), Chapter 16, Statutes of 2014, establishes  
            conditions under which a multipurpose organization that makes  
            campaign contributions or expenditures is required to disclose  
            names of its donors.  One provision of SB 27 requires a  
            committee that is primarily formed to support or oppose a  
            state ballot measure or state candidate that raises $1,000,000  
            or more for an election to maintain an accurate list of the  
            committee's top 10 contributors, and requires that list to be  
            posted on the FPPC's website.  This bill requires the  
            disclosure statements on certain types of advertisements to  
            include a link to that contributor list on the FPPC's website.  
           
           8)Political Reform Act of 1974  :  California voters passed an  
            initiative, Proposition 9, in 1974 that created the FPPC and  
            codified significant restrictions and prohibitions on  
            candidates, officeholders and lobbyists. That initiative is  
            commonly known as the PRA.  Amendments to the PRA that are not  







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            submitted to the voters, such as those contained in this bill,  
            must further the purposes of the initiative and require a  
            two-thirds vote of both houses of the Legislature.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Clean Money Campaign (Sponsor)
               In addition, the California Clean Money Campaign submitted  
               copies of petitions signed by more than 5,000 individuals  
               in support of SB 52
          Brennan Center for Justice (prior version)
          California Alliance for Retired Americans (prior version)
          California Church IMPACT (prior version)
          California Common Cause
          California Federation of Interpreters (prior version)
          California Forward Action Fund (prior version)
          California League of Conservation Voters (prior version)
          California National Organization for Women (prior version)
          California OneCare (prior version)
          California State Retirees (prior version)
          CALPIRG (prior version)
          City of Watsonville (prior version)
          Consumer Federation of California (prior version)
          Courage Campaign (prior version)
          Endangered Habitats League (prior version) 
          Fresno Stonewall Democrats (prior version)
          Friends Committee on Legislation of California (prior version)
          Global Exchange (prior version)
          Green Chamber of Commerce (prior version)
          Insurance Commissioner Dave Jones (prior version)
          Jericho (prior version)
          League of Women Voters of California (prior version)
          Los Angeles County Democratic Party (prior version)
          Lutheran Office of Public Policy (prior version)
          MapLight (prior version)
          National Council of Jewish Women (prior version)
          Pacific Palisades Democratic Club (prior version)
          Progressives United (prior version)
          Public Citizen (prior version)
          Redwood Empire Business Association (prior version)
          Rootstrikers (prior version)
          San Diego County Democratic Party (prior version)
          Southwest California Synod Evangelical Lutheran Church in  







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          America (prior version)
          Southwest Voter Registration Education Project (prior version)
          Union of American Physicians and Dentists/AFSCME Local 206  
          (prior version)
          United Teachers Los Angeles (prior version)
          10 individuals (prior version)
           
          Opposition 
           
          Howard Jarvis Taxpayers Association

           Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094