BILL ANALYSIS Ó
SB 52
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Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 52 (Leno and Hill) - As Amended: August 4, 2014
Policy Committee: ElectionsVote:5-1
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill amends the Political Reform Act (PRA) to change the
disclosure requirements for advertisements supporting or
opposing ballot measures. Specifically, this bill:
1)Requires, in general, that such ads disseminated by a
political party or candidate-controlled committee identify the
name of the committee paying for the ad, as specified.
2)Requires, in general, that ads disseminated by a committee
other than a political party or candidate-controlled committee
disclose the identifiable contributors making the two largest
(radio) or three largest (television, video, mass mailing, or
print) cumulative contributions to the committee and the name
of the committee paying for the add, as specified.
3)Defines "identifiable contributor" as a person who is the
original source of funds for contributions received by
committee that cumulatively total $50,000 or more,
notwithstanding that the contributions were transferred
through one or more committees or persons.
4)Requires the Fair Political Practices Commission (FPPC), by
January 1, 2016, to promulgate regulations regarding the
reporting and tracking of funds transferred by an identifiable
contributor to committees or other persons.
5)Provides a defense for a recipient committee, in any action
brought by the FPPC, if information provided by a contributor
was incorrect and the committee did not have reason to know it
was incorrect.
SB 52
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6)Requires updating of the disclosures, to reflect any changes
in the order of identifiable contributors as follows: within
seven business days, or within five business days if within 30
days before an election (for non-print ads); or prior to
placing a new or modified order for a print ad.
FISCAL EFFECT
Annual General Fund costs to the FPPC of $400,000 for three
positions to promulgate regulations, update manuals, and then
process increased requests for advice and for additional
investigation and enforcement. The FPPC also indicates the
specific regulations could lead to litigation, which would
require an additional attorney position at a cost of $175,000.
COMMENTS
1)Purpose . According to the author, many ballot measure
committees and general purpose committees that contribute to
them are established to disguise who exactly is funding their
campaign messages. Money is purposefully channeled through
multiple layers of committees or organizations, making it
harder to trace and disclose. SB 52 is intended to increase
transparency of ballot measure campaign spending by ensuring
that the true original major campaign contributors are
disclosed to voters when they see the ads.
2)Current law .
a) 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.
b) 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.
3)Prior Legislation . This bill is similar to AB 1148 (Brownley)
and AB 1648 (Brownley) of 2012. AB 1148 failed passage on the
Assembly Floor and AB 1648 was approved on the Assembly, but
was not heard in the Senate.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081
SB 52
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