BILL NUMBER: AB 700	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2015

INTRODUCED BY   Assembly Members Gomez and Levine

                        FEBRUARY 25, 2015

   An act to  add Section 84503.1 to   amend
Section 84511 of  the Government Code, relating to the Political
Reform Act of 1974.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 700, as amended, 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  a  disclosure
statement  requirements   requirement 
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   a committee that
makes an expenditure of $5,000 or more  .
   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   require that if the
advertisement is a television or video advertisement, the disclosure
statement shall be shown continuously  .
   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.    It is the intent of the Legislature to
enact legislation that would implement a California Disclose Act to
ensure that advertisements that seek to persuade voters to cast a
vote in favor or against ballot measures do not mislead voters as to
who is funding the campaign that paid for the advertisement. 
   SEC. 2.    Section 84511 of the   Government
Code   is amended to read: 
   84511.  (a) This section applies to a committee that does either
of the following:
   (1) Makes an expenditure of five thousand dollars ($5,000) or more
to an individual for his or her appearance in an advertisement that
supports or opposes the qualification, passage, or defeat of a ballot
measure.
   (2) Makes an expenditure of any amount to an individual for his or
her appearance in an advertisement that supports or opposes the
qualification, passage, or defeat of a ballot measure and that states
or suggests that the individual is a member of an occupation that
requires licensure, certification, or other specialized, documented
training as a prerequisite to engage in that occupation.
   (b) A committee described in subdivision (a) shall file, within 10
days of the expenditure, a report that includes all of the
following:
   (1) An identification of the measure that is the subject of the
advertisement.
   (2) The date of the expenditure.
   (3) The amount of the expenditure.
   (4) The name of the recipient of the expenditure.
   (5) For a committee described in paragraph (2) of subdivision (a),
the occupation of the recipient of the expenditure.
   (c) An advertisement paid for by a committee described in
paragraph (1) of subdivision (a) shall include a disclosure statement
stating "(spokesperson's name) is being paid by this campaign or its
donors" in highly visible roman font shown continuously if the
advertisement consists of printed or televised material, or spoken in
a clearly audible format if the advertisement is a radio broadcast
or telephonic message.  If the advertisement is a television or
video advertisement, the statement shall be shown continuously. 

   (d) (1) An advertisement paid for by a committee described in
paragraph (2) of subdivision (a) shall include a disclosure statement
stating "Persons portraying members of an occupation in this
advertisement are compensated spokespersons not necessarily employed
in those occupations" in highly visible roman font shown continuously
if the advertisement consists of printed or televised material, or
spoken in a clearly audible format if the advertisement is a radio
broadcast or telephonic message.
   (2) A committee may omit the disclosure statement required by this
subdivision if all of the following are satisfied with respect to
each individual identified in the report filed pursuant to
subdivision (b) for that advertisement:
   (A) The occupation identified in the report is substantially
similar to the occupation portrayed in the advertisement.
   (B) The committee maintains credible documentation of the
appropriate license, certification, or other training as evidence
that the individual may engage in the occupation identified in the
report and portrayed in the advertisement and makes that
documentation immediately available to the Commission upon request.

  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.   SEC. 3.   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.   SEC. 4.   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.