BILL NUMBER: AB 700 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Gomez and Levine
FEBRUARY 25, 2015
An act to add Section 84503.1 to the Government Code, relating to
the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 700, as introduced, Gomez. Political Reform Act of 1974:
advertisement 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.
This bill would impose new disclosure statement requirements for
political advertisements regarding a ballot measure paid for by
specified committees that are radio advertisements, prerecorded
telephonic messages, or television or video advertisements that would
require the identification of identifiable contributors, as defined.
This bill would also state the intent of the Legislature to enact
legislation that would implement a California Disclose Act, with
provisions similar to a specified bill from the 2013-14 Regular
Session of the Legislature.
Because a violation of the act is punishable as a misdemeanor,
this bill would impose a state-mandated local program.
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. The Legislature finds and declares all of the
following:
(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 campaign expenditures in
support of and opposition to those measures.
(b) Ever-increasing amounts of funds are spent on campaigns by
persons who do one or more of the following:
(1) Frequently use their wealth to fund local and state ballot
measures designed to advance their own economic interests.
(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.
(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.
(4) Increasingly evade disclosure by funding advertisements
designed to persuade voters without expressly advocating support or
opposition.
(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.
(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 and societal purposes:
(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.
(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.
(3) Deterring actual corruption and avoiding the appearance of
corruption by providing increased transparency of contributions and
expenditures.
(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.
(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.
SEC. 2. It is the intent of the Legislature to enact legislation
that would implement a California Disclose Act consistent with the
provisions of Senate Bill 52 of the 2013-14 Regular Session of the
Legislature.
SEC. 3. Section 84503.1 is added to the Government Code, to read:
84503.1. (a) For purposes of this section, "identifiable
contributor" means a person that is the original source of funds for
contributions received by a committee that cumulatively total fifty
thousand dollars ($50,000) or more, notwithstanding the fact that the
contributions were transferred, in whole or in part, through one or
more other committees or persons.
(b) A committee that is a candidate controlled committee as
defined in Section 82016 or a political party committee as defined in
Section 85205 is not subject to the disclosure statement
requirements of this section.
(c) An advertisement regarding a ballot measure 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]."
(d) An advertisement regarding a ballot measure 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]. This
ad has major funding from state names in descending order of
identifiable contributors who have made the three largest cumulative
contributions to the committee that paid for the advertisement]." The
text shall be in a contrasting color in Arial Narrow equivalent
font, 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.
(e) The requirements of this section are in addition to any other
requirements imposed by this article.
SEC. 4. 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.
SEC. 5. 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.