Amended in Assembly January 7, 2016

Amended in Assembly May 21, 2015

Amended in Assembly April 14, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 700

Introduced by Assembly Members Gomez and Levine

February 25, 2015

An act to amend begin delete Section 84511 of the Government Code, relating to the Political Reform Act of 1974, and declaring the urgency thereof, to take effect immediately. end delete begin insert Sections 84501, 84505, and 84511 of, to add Sections 84504.1, 84504.2, and 84504.3 to, to repeal Sections 84506, 84507, and 84508 of, and to repeal and add Sections 84502, 84503, 84504, and 84509 of, the Government Code, relating to the Political Reform Act of 1974. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 700, as amended, Gomez. Political Reform Act of 1974: advertisement disclosures.

begin insert

Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing and activities. The act requires a committee that supports or opposes ballot measures to name and identify itself using a name or phrase the clearly identifies the economic or other special interests of its major donors of $50,000 or more. The act also requires that if the major donors share a common employer, the identity of the employer be disclosed.

end insert begin insert

This bill would repeal these provisions.

end insert begin insert

The act also requires advertisements, as defined, to include prescribed disclosure statements, including, among others, a requirement that the disclosure statement include the names of the persons who made the 2 highest cumulative contributions, as defined, to the committee paying for the advertisement.

end insert begin insert

This bill would repeal and recast provisions of the act relating to advertisement disclosure statements. Among those changes, this bill would revise the definition of “advertisement” to exclude a number of communications, including communications paid for by a political party committee or person who is not a committee, and communications that involve wearing apparel, sky writing, and certain electronic media communications, as specified. The bill would also replace existing advertisement disclosure statements with newly prescribed disclosure statements that identify the name of the committee paying for the advertisement and the top contributors of the committee paying for the advertisement. The bill would define “top contributors” for purposes of these provisions as the persons from whom the committee paying for the advertisement received its 3 highest cumulative contributions, as specified. The bill would exempt certain committees, including committees that make independent expenditures totaling $1,000 or more in a calendar year, from the requirement to disclose the top contributors in advertisement disclosure statements. The bill would also prescribe location and format criteria for the disclosure statements that is specific to radio and telephone, television and video, print, and electronic media advertisements.

end insert begin insert

Because a violation of the act is punishable as a misdemeanor, this bill would impose a state-mandated local program.

end insert begin insert

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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin insert

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.

end insert begin insert

This bill would declare that it furthers the purposes of the act.

end insert begin delete

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 requirement with respect to advertisements supporting or opposing a candidate or ballot measure paid for by a committee that makes an expenditure of $5,000 or more.

end delete begin delete

This bill would require that if the advertisement is a television or video advertisement, the disclosure statement shall be shown continuously.

end delete begin delete

This bill would also state the intent of the Legislature to enact legislation that would implement a California Disclose Act.

end delete begin delete

Because a violation of the act is punishable as a misdemeanor, this bill would impose a state-mandated local program.

end delete begin delete

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.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete begin delete

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.

end delete begin delete

This bill would declare that it furthers the purposes of the act.

end delete begin delete

This bill would declare that it is to take effect immediately as an urgency statute.

end delete

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 84501 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

84501.  

begin insert

For purposes of this article the following terms have
the following meanings:

end insert

(a)  begin insert (1) end insert begin insert   end insert “Advertisement” means any general or public
begin delete advertisement end delete begin insert communication end insert which is authorized and paid for by
a begin delete person or end delete committee for the purpose of supporting or opposing
a candidate begin insert or candidates end insert for elective office or a ballot measure
or ballot measures.

begin delete

(b)

end delete

begin insert (2) end insert  “Advertisement” does not include begin delete a communication from
an organization other than a political party to its members, a
campaign button smaller than 10 inches in diameter, a bumper
sticker smaller than 60 square inches, or other advertisement as
determined by regulations of the commission. end delete begin insert any of the following: end insert

begin insert

(A) A communication paid for by a political party committee
or a candidate controlled committee established for elective office
for the controlling candidate.

end insert begin insert

(B) A communication from an organization, other than a
political party, to its members.

end insert begin insert

(C) 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 this article cannot be conveniently
printed or displayed.

end insert begin insert

(D) Wearing apparel.

end insert begin insert

(E) Sky writing.

end insert begin insert

(F) An electronic media communication where inclusion of the
disclosures required by Sections 84502, 84503, or 84506.5, 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.

end insert begin insert

(G) Any other advertisement as determined by regulations of
the Commission.

end insert begin insert

(b) “Cumulative contributions” means the cumulative amount
of contributions received by a committee beginning 12 months
prior to the date of the expenditure and ending seven days before
the time the advertisement is sent to the printer or broadcaster.

end insert begin insert

(c) (1) “Top contributors” means the persons from whom the
committee paying for an advertisement has received its three
highest cumulative contributions of fifty thousand dollars ($50,000)
or more.

end insert begin insert

(2) If two or more contributors of identical amounts qualify as
top contributors, the most recent contributor of that amount shall
be listed as the top contributor in any disclosure required by
Section 84503.

end insert begin insert

(3) If a contributor appears to qualify as a top contributor but
received earmarked funds to make the contribution, the person or
committee that earmarked the funds and gave those funds to the
contributor shall instead be disclosed as the top contributor if they
qualified as such. The person or committee transferring earmarked
funds shall disclose the true source of the funds to the committee
receiving the earmarked funds at the time the funds are transferred.
Funds are “earmarked” in the following circumstances:

end insert begin insert

(A) The contributor solicited and received the funds from donors
for the purpose of making a contribution to the committee paying
for the advertisement.

end insert begin insert

(B) The funds were given to the contributor subject to a
condition, agreement, or understanding with the donor that all or
a portion would be used to make a contribution to the committee
paying for the advertisement, including any circumstance where
the donor identifies the committee as a potential recipient of the
contribution and the committee in fact receives all or a portion of
the donor’s contribution.

end insert begin insert

(C) The contributor had existing funds from a donor and a
subsequent agreement or understanding was reached with the
donor that all or a portion of the funds would be used to contribute
to the committee paying for the advertisement, including any
circumstance where the donor identifies the committee as a
potential recipient of the contribution and the committee in fact
receives all or a portion of the donor's contribution.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 84502 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84502.  

“Cumulative contributions” means the cumulative
amount of contributions received by a committee beginning 12
months prior to the date the committee made its first expenditure
to qualify, support, or oppose the measure and ending within seven
days of the time the advertisement is sent to the printer or broadcast
station.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 84502 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84502. end insert   

(a) Any advertisement paid for by a committee pursuant
to subdivision (a) of Section 82013 shall include the words “Paid
for by” followed by the name of the committee as it appears on
the most recent Statement of Organization filed pursuant to Section
84101.

(b) Any advertisement paid for by a committee as defined by
subdivision (b) or (c) of Section 82013 shall include the words
“Paid for by” followed by the name that the filer is required to
use on campaign statements pursuant to subdivision (o) of Section
84211.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 84503 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84503.  

(a) Any advertisement for or against any ballot measure
shall include a disclosure statement identifying any person whose
cumulative contributions are fifty thousand dollars ($50,000) or
more.

(b) If there are more than two donors of fifty thousand dollars
($50,000) or more, the committee is only required to disclose the
highest and second highest in that order. In the event that more
than two donors meet this disclosure threshold at identical
contribution levels, the highest and second highest shall be selected
according to chronological sequence.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 84503 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84503. end insert   

(a) Any advertisement paid for by a committee pursuant
to subdivision (a) of Section 82013 shall include the words “This
committee has major funding from” followed by the names of the
top contributors to the committee paying for the advertisement. If
fewer than three contributors qualify as top contributors, only
those contributors that qualify shall be disclosed pursuant to this
section. If there are no contributors that qualify as top contributors,
this disclosure is not required. If the content of the advertisement
names each of the top contributors as major funding sources of
the committee, this disclosure is not required.

(b) The disclosure of a top contributor pursuant to this section
need not include legal terms such as “incorporated,” “committee,”
“political action committee,” or “corporation,” or abbreviations
of these terms, unless the term is part of the contributor’s name
in common usage or parlance.

(c) If this article requires the disclosure of the name of a top
contributor that is a committee pursuant to subdivision (a) of
Section 82013 and is a sponsored committee pursuant to 82048.7
with a single sponsor, only the name of the single sponsoring
organization shall be disclosed.

(d) This section does not apply to a committee as defined by
subdivision (b) or (c) of Section 82013 or a political party
committee.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 84504 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84504.  

(a) Any committee that supports or opposes one or
more ballot measures shall name and identify itself using a name
or phrase that clearly identifies the economic or other special
interest of its major donors of fifty thousand dollars ($50,000) or
more in any reference to the committee required by law, including,
but not limited, to its statement of organization filed pursuant to
Section 84101.

(b) If the major donors of fifty thousand dollars ($50,000) or
more share a common employer, the identity of the employer shall
also be disclosed.

(c) Any committee which supports or opposes a ballot measure,
shall print or broadcast its name as provided in this section as part
of any advertisement or other paid public statement.

(d) If candidates or their controlled committees, as a group or
individually, meet the contribution thresholds for a person, they
shall be identified by the controlling candidate’s name.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 84504 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84504. end insert   

(a) An advertisement that is disseminated over the
radio or by telephonic means shall include the disclosures required
by Sections 84502, 84503, and 84506.5 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, and
shall last no less than three seconds.

(b) Notwithstanding the definition of “top contributors” in
paragraph (1) of subdivision (c) of Section 84501, radio and
prerecorded telephonic advertisements shall be required to disclose
only the single top contributor of fifty thousand dollars ($50,000)
or more.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 84504.1 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84504.1. end insert   

(a) An advertisement that is disseminated as a video,
including advertisements on television and videos disseminated
over the Internet, shall include the disclosures required by Sections
84502 and 84503 at the beginning or end of the advertisement.

(b) The disclosure required by subdivision (a) shall be written
and displayed for at least five seconds of a broadcast of thirty
seconds or less or for at least ten seconds of a broadcast that lasts
longer than thirty seconds.

(1) The written disclosure required by subdivision (a) shall
appear on a solid black background on the entire bottom one-third
of the television or video display screen and shall be in a
contrasting color in Arial equivalent type, and the type size for the
tallest letters in the written disclosure shall be exactly 4 percent
of the height of the television or video display screen. The top
contributors, if any, shall each be disclosed on a separate
horizontal line, in descending order, beginning with the top
contributor who made the largest cumulative contributions on the
first line. The name of each of the top contributors shall be centered
horizontally. If the names of the top three contributors exceed or
cause the disclosure to exceed one-third of the television or video
display screen, the percent of the height of the type size shall be
reduced to the minimum amount necessary to provide for full
disclosure of the top contributors. The written disclosures required
by Sections 84502 and 84503 shall be underlined, except for the
names of the top contributors, if any.

(2) Committees subject to Section 84223 shall include the text
“Funding Details At [insert Commission Internet Web site with
information required to be posted by subdivision (c) of Section
84223].” The text shall be in contrasting color in Arial equivalent
type and the type size shall be equivalent to at least 2.5 percent of
the height of the television or video display screen.

(3) If using a type size of 4 percent of the height of the television
or video display screen causes the name of any of the top
contributors to exceed the width of the screen, the type sizes of the
name of the contributor that exceeds the width of the screen shall
be reduced until it fits on the width of the screen, but in no case
shall the type size be smaller than 2.5 percent of the height of the
screen.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 84504.2 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84504.2. end insert   

(a) A print advertisement shall include the disclosures
required by Sections 84502, 84503, and 84506.5, displayed as
follows:

(1) The disclosure area shall have a solid white background
and shall be in a printed or drawn box on the bottom of at least
one page that is set apart from any other printed matter. All text
in the disclosure area shall be in contrasting color.

(2) The text shall be in an Arial equivalent type with a type size
of at least 10-point for printed advertisements designed to be
individually distributed, including, but not limited to, mailers,
flyers, and door hangers.

(3) The top contributors, if any, shall each be disclosed on a
separate horizontal line, in descending order, beginning with the
top contributor who made the largest cumulative contributions on
the first line. The name of each of the top contributors shall be
centered horizontally in the disclosure area.

(4) Immediately below the text described in paragraph (3),
committees subject to Section 84223 shall include the text
“Funding Details At [insert Commission Internet Web site with
information required to be posted by subdivision (c) of Section
84223].” The text shall be in an Arial equivalent type with a type
size of at least 10-point for printed advertisements designed to be
individually distributed, including but not limited to mailers, flyers
and door hangers.

(b) Notwithstanding paragraphs (2) and (4) of subdivision (a),
the disclosure on a printed advertisement that is larger than those
designed to be individually distributed, including, but not limited
to, yard signs or billboards, shall be in Arial equivalent type with
a type size of at least 10 percent of the height of the advertisement,
and printed on a solid background with sufficient contrast that is
easily readable by the average person.

(c) Notwithstanding the definition of “top contributors” in
paragraph (1) of subdivision (c) of Section 84501, newspaper,
magazine, or other public print advertisements that are 20 square
inches or less shall be required to disclose only the single top
contributor of fifty thousand dollars ($50,000) or more.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 84504.3 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 84504.3. end insert   

(a) An electronic media advertisement shall do all
of the following:

(1) Contain the disclosures required by Sections 84502, 84503,
and 84506.5 in a type size and font that is easily readable by the
average viewer, visible for a period of at least four seconds and
contrasts with the background so as to be easily readable by the
average person, unless impractical.

(2) Hyperlink to an Internet Web site containing the text required
by paragraph (1).

(b) An Internet Web site that is hyperlinked to as provided for
in paragraph (2) of subdivision (a) shall remain online and
available to the public until 30 days after the date of the election
where the candidate or measure supported or opposed by the
advertisement was voted upon.

(c) An advertisement made via a form of electronic media that
is audio only and therefore cannot include either of the disclaimers
in subdivision (a) shall comply with the disclaimer requirements
for radio advertisements in Section 84504.

(d) An advertisement made via a form of electronic media that
allows users to engage in discourse and post content, or any other
type of social media, shall only be required to include the
disclaimer required by subdivision (a) on the committee’s home
page, landing page, or similar location and shall not be required
to include the disclaimer required by subdivision (a) on each
individual post, comment, or other similar communication.

(e) The disclaimer required by this section does not apply to
advertisements made via social media where the only expense or
cost of the communication is compensated staff time unless the
social media account where the content is posted was created only
for the purpose of advertisements governed by this title.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 84505 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

84505.  

begin insert (a) end insert begin insert   end insert In addition to the requirements of Sections begin insert 84502, end insert
84503, begin delete 84504, 84506, end delete and 84506.5, the committee placing the
advertisement or persons acting in concert with that committee
shall be prohibited from creating or using a noncandidate-controlled
committee or a nonsponsored committee to avoid, or that results
in the avoidance of, the disclosure of any individual, industry,
business entity, controlled committee, or sponsored committee as
a begin delete major funding source. end delete begin insert top contributor. end insert

begin insert

(b) Written disclosures required by Sections 84502, 84503, and
84506.5 shall not appear in all capital letters provided, however,
capital letters shall be permitted for the beginning of a sentence,
the beginning of a proper name or location, or as otherwise
required by conventions of the English language.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 84506 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84506.  

(a) An advertisement supporting or opposing a
candidate or ballot measure, that is paid for by an independent
expenditure, shall include a disclosure statement that identifies
both of the following:

(1) The name of the committee making the independent
expenditure.

(2) The names of the persons from whom the committee making
the independent expenditure has received its two highest
cumulative contributions of fifty thousand dollars ($50,000) or
more during the 12-month period prior to the expenditure. If the
committee can show, on the basis that contributions are spent in
the order they are received, that contributions received from the
two highest contributors have been used for expenditures unrelated
to the candidate or ballot measure featured in the communication,
the committee shall disclose the contributors making the next
largest cumulative contributions of fifty thousand dollars ($50,000)
or more.

(b) If an acronym is used to identify any committee names
required by this section, the names of any sponsoring organization
of the committee shall be printed on print advertisements or spoken
in broadcast advertisements.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 84507 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84507.  

Any disclosure statement required by this article shall
be printed clearly and legibly in no less than 14-point, bold, sans
serif type font and in a conspicuous manner as defined by the
commission or, if the communication is broadcast, the information
shall be spoken so as to be clearly audible and understood by the
intended public and otherwise appropriately conveyed for the
hearing impaired.

end delete

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 84508 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84508.  

If disclosure of two major donors is required by Sections
84503 and 84506, the committee shall be required to disclose, in
addition to the committee name, only its highest major contributor
in any advertisement which is:

(a) An electronic broadcast of 15 seconds or less, or

(b) A newspaper, magazine, or other public print media
advertisement which is 20 square inches or less.

end delete

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 84509 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84509.  

When a committee files an amended campaign
statement pursuant to Section 81004.5, the committee shall change
its advertisements to reflect the changed disclosure information.

end delete

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 84509 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 84509. end insert   

If the order of top contributors required to be disclosed
pursuant to this article changes or a new contributor qualifies as
a top contributor, the disclosure in the advertisement shall be
updated as follows:

(a) A television, radio, telephone, electronic billboard, or other
electronic media advertisement shall be updated to reflect the new
top contributors within seven business days, or five business days
if the change in top contributors occurs within 30 days of an
election.

(b) A print media advertisement, including nonelectronic
billboards, shall be updated to reflect the new top contributors
prior to placing a new or modified order for additional printing
of the advertisement.

end insert

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 84511 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

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 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. begin insert If the advertisement is a television or video
advertisement, the statement shall be shown continuously, except
when the disclosure statement required by Section 84504.1 is being
shown. end insert

(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 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.

begin insert

begin insert SEC. 18. end insert   

end insert begin insert

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.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert begin insert

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.

end insert

begin delete

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.

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. 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.

SEC. 5.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to protect the interests of Californians who are
empowered with the right to vote, it is appropriate that they be
duly informed and that their constitutional right to instruct their
representative be protected. This purpose is best served by an
informed electorate and an informed press. The need for greater
transparency of campaign contributions and advertisement
disclosures is vital to the interests of the State such that this act
must take effect immediately.

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