BILL ANALYSIS Ó
SB 52
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SENATE THIRD READING
SB 52 (Leno and Hill)
As Amended August 18, 2014
2/3 vote
SENATE VOTE :28-11
ELECTIONS 5-1 APPROPRIATIONS 9-6
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|Ayes:|Fong, Bonta, Hall, Perea, |Ayes:|Gatto, Bocanegra, |
| |Rodriguez | |Bradford, |
| | | |Ian Calderon, Campos, |
| | | |Eggman, Holden, Pan, |
| | | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Donnelly |Nays:|Bigelow, Donnelly, Jones, |
| | | |Linder, Ridley-Thomas, |
| | | |Wagner |
| | | | |
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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.
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 ad, as specified.
3)Specifies requirements for the size, color, and placement of
the text of disclosure statements required by this bill.
4)Defines "identifiable contributor," for the purposes of this
bill, 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
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were transferred through other committees or persons.
5)Requires the Fair Political Practices Commission (FPPC), not
later than January 1, 2016, to promulgate regulations related
to identifying and reporting persons who are the original
sources of funds for the purpose of determining the
identifiable contributors who are required to be disclosed on
advertisements regarding ballot measures. Requires the FPPC
to promulgate regulations prohibiting a recipient of funds
transferred by an identifiable contributor from depositing the
funds until any applicable reports required by the regulations
adopted by the FPPC have been received by the recipient.
6)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.
7)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.
8)Contains double-jointing language to avoid chaptering problems
with AB 510 (Ammiano) of the current legislative session.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 : According to the author, "SB 52 will increase
transparency of campaign spending in 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
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on ballot measure advertisements is necessary to help
Californians be better informed and feel more represented by
their government."
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.
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.
This bill is similar to AB 1148 (Brownley) of 2011 and AB 1648
(Brownley) of 2011. AB 1148 failed passage on the Assembly
Floor. AB 1648 was approved on the Assembly Floor by a 50-26
vote, but was not heard in the Senate.
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 Political Reform Act (PRA).
Amendments to the PRA that are not 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.
Please see the policy committee analysis for a full discussion
of this bill.
Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094
FN: 0004828
SB 52
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