Amended in Assembly January 12, 2016

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 Sections begin insert 82025, 84305, 84310, end insert 84501, 84505, begin delete and end delete 84511 begin insert , and 85704 end insert 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 begin insert and declaring the urgency thereof, to take effect immediately end insert .

LEGISLATIVE COUNSEL’S DIGEST

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

begin insert (1) end insert begin insert   end 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.

This bill would repeal these provisions.

begin insert

(2) The act defines the term “expenditure” as a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes.

end insert begin insert

This bill would specify additional types of payments that are or are not included in the definition of expenditure. The bill would also define terms used within those provisions, including “clearly identified” and “expressly advocates.”

end insert begin insert

(3) The act prohibits a candidate, committee, or slate mailer organization from expending campaign funds to pay for specified telephone calls that advocate support of, or opposition to, a candidate, ballot measure, or both, unless the name of the organization that authorized or paid for the call is disclosed to the recipient of the call during the course of each call.

end insert begin insert

This bill would instead make these requirements applicable to a candidate, a candidate controlled committee established for elective office for the controlling candidate, a political party committee, and a slate mailer organization that expends campaign funds to pay for such telephone calls.

end insert

begin insert (4) end insert begin insert   end 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.

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.

begin insert

(5) The act prohibits a person from making a contribution as an intermediary on behalf of another person without disclosing to the recipient of the contribution specified information about both the intermediary and the source of the contribution. The act also prohibits a person from making a contribution to a committee on the condition or with the agreement that it will be contributed to a particular candidate unless the contribution is disclosed in compliance with those requirements for contributions made by an intermediary.

end insert begin insert

This bill would revise the latter provision to prohibit a person from making a contribution to a committee or candidate that is earmarked for a contribution to another committee or candidate, unless the contribution is disclosed in compliance with the requirements for contributions made by an intermediary. The bill would also describe circumstances in which a contribution is deemed to be earmarked.

end insert

begin insert (6) end insert begin insert   end insert 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.

begin insert (7) end insert begin insert   end 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.

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

begin insert

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

end insert

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 82025 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

82025.  

begin insert (a) end insert begin insert   end insert “Expenditure” means a payment, a forgiveness of
a loan, a payment of a loan by a third party, or an enforceable
promise to make a payment, unless it is clear from the surrounding
circumstances that it is not made for political purposes.
“Expenditure” does not include a candidate’s use of his or her own
money to pay for either a filing fee for a declaration of candidacy
or a candidate statement prepared pursuant to Section 13307 of
the Elections Code. An expenditure is made on the date the
payment is made or on the date consideration, if any, is received,
whichever is earlier. begin insert A payment is made for political purposes if
it is any of the following: end insert

begin insert

(1) For the purpose of influencing or attempting to influence
the action of the voters for or against the nomination or election
of a candidate or candidates, or the qualification or passage of
any measure.

end insert begin insert

(2) Made by:

end insert begin insert

(A) A candidate, unless it is clear from surrounding
circumstances that the payment was made for personal purposes
unrelated to his or her candidacy or status as an officeholder.

end insert begin insert

(B) A controlled committee.

end insert begin insert

(C) An official committee of a political party, including a state
central committee, county central committee, assembly district
committee, or any subcommittee of such committee.

end insert begin insert

(D) An organization formed or existing primarily for political
purposes as defined in paragraph (1), including, but not limited
to, a committee sponsored by any membership organization, labor
union, or corporation.

end insert begin insert

(b) “Expenditure” includes any monetary or non-monetary
payment made by any person, who is not a person or organization
described in paragraph (2) of subdivision (a), that is used for
communications which expressly advocate the nomination, election,
or defeat of a clearly identified candidate or candidates, or the
qualification, passage, or defeat of a clearly identified ballot
measure.

end insert begin insert

(c) “Clearly identified” has the following meaning:

end insert begin insert

(1)  A candidate is clearly identified if the communication states
his name, makes unambiguous reference to his office or status as
a candidate, or unambiguously describes him in any manner.

end insert begin insert

(2) A group of candidates is clearly identified if the
communication makes unambiguous reference to some well-defined
characteristic of the group, even if the communication does not
name each candidate. A communication that clearly identifies a
group of candidates and expressly advocates their election or
defeat is reportable as an expenditure, but the expenditure need
not be allocated among all members of the class or group on the
campaign statement reporting the expenditure.

end insert begin insert

(3) A measure that has qualified to be placed on the ballot is
clearly identified if the communication states a proposition number,
official title, or popular name associated with the measure. In
addition, the measure is clearly identified if the communication
refers to the subject matter of the measure and either states that
the measure is before the people for a vote or, taken as a whole
and in context, unambiguously refers to the measure.

end insert begin insert

(4) A measure that has not qualified to be placed on the ballot
is clearly identified if the communication refers to the subject
matter of the measure and to the qualification drive.

end insert begin insert

(d) A communication “expressly advocates” the nomination,
election, or defeat of a candidate or the qualification, passage, or
defeat of a measure if it contains express words of advocacy such
as “vote for,” “elect,” “support,” “cast your ballot,” “vote
against,” “defeat,” “reject,” “sign petitions for” or, within 120
days prior to an election in which the candidate or measure
appears on the ballot, the communication otherwise refers to a
clearly identified candidate or measure so that the communication,
taken as a whole, unambiguously urges a particular result in an
election.

end insert begin insert

(1) Except for those communications paid for with public monies
by a state or local government agency and reported as specified
by the Commission, a communication, taken as a whole,
unambiguously urges a particular result in an election if it is
susceptible of no reasonable interpretation other than as an appeal
to vote for or against a specific candidate or measure. A
communication is susceptible of no reasonable interpretation other
than as an appeal to vote for or against a specific candidate or
measure when, taken as a whole, it could only be interpreted by
a reasonable person as containing an appeal to vote for or against
a specific candidate or measure because:

end insert begin insert

(A) The electoral portion of the communication is unmistakable,
unambiguous, and suggestive of only one meaning; and

end insert begin insert

(B) Reasonable minds could not differ as to whether it
encourages a vote for or against a clearly identified candidate or
measure, or encourages some other kind of action on a legislative,
executive, or judicial matter or issue, or

end insert begin insert

(C) The solicitation of funds for the communication demonstrates
a clear intent for the communication to encourage a vote for or
against a clearly identified candidate or measure.

end insert begin insert

(e) Safe Harbor. A communication does not “expressly
advocate” the nomination, election, or defeat of a candidate or
the qualification, passage, or defeat of a ballot measure, within
the meaning of this section, if:

end insert begin insert

(1) It does not mention an election, candidacy, political party
(unless required by law), opposing candidate, voting by the general
public, and does not take a position on the character,
qualifications, or fitness for office of a candidate or officeholder,
or the merits of a ballot measure; and

end insert begin insert

(2) It focuses on a legislative, executive, or judicial matter or
issue, either urging a candidate to take a particular position or
action with respect to the matter or issue, or urging the public to
adopt a particular position and to contact the candidate with
respect to the matter or issue.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 84305 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

84305.  

(a) Except as provided in subdivision (b), no candidate begin insert ,
candidate controlled committee established for elective office for
the controlling candidate, political party committee, end insert or committee
shall send a mass mailing unless the name, street address, and city
of the candidate or committee are shown on the outside of each
piece of mail in the mass mailing and on at least one of the inserts
included within each piece of mail of the mailing in no less than
6-point type which shall be in a color or print which contrasts with
the background so as to be easily legible. A post office box may
be stated in lieu of a street address if the begin delete organization’s end delete begin insert candidate’s,
controlled committee’s, political party committee end insert begin insert ’ end insert begin insert s, or committee end insert begin insert ’s end insert
address is a matter of public record with the Secretary of State.

(b) If the sender of the mass mailing is a single candidate or
committee, the name, street address, and city of the candidate or
committee need only be shown on the outside of each piece of
mail.

(c) If the sender of a mass mailing is a controlled committee,
the name of the person controlling the committee shall be included
in addition to the information required by subdivision (a).

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 84310 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

84310.  

(a) A candidate, begin insert candidate controlled committee
established for elective office for the controlling candidate,
political party end insert committee, or slate mailer organization may not
expend campaign funds, directly or indirectly, to pay for telephone
calls that are similar in nature and aggregate 500 or more in
number, made by an individual, or individuals, or by electronic
means and that advocate support of, or opposition to, a candidate,
ballot measure, or both, unless during the course of each call the
name of the begin insert candidate, candidate controlled committee established
for elective office for the controlling candidate, political party
committee, committee or slate mailer end insert organization that authorized
or paid for the call is disclosed to the recipient of the call. Unless
the organization that authorized the call and in whose name it is
placed has filing obligations under this title, and the name
announced in the call either is the full name by which the
organization or individual is identified in any statement or report
required to be filed under this title or is the name by which the
organization or individual is commonly known, the candidate,
committee, or slate mailer organization that paid for the call shall
be disclosed. This section shall not apply to telephone calls made
by the candidate, the campaign manager, or individuals who are
volunteers.

(b) Campaign and ballot measure committees are prohibited
from contracting with any phone bank vendor that does not disclose
the information required to be disclosed by subdivision (a).

(c) A candidate, committee, or slate mailer organization that
pays for telephone calls as described in subdivision (a) shall
maintain a record of the script of the call for the period of time set
forth in Section 84104. If any of the calls qualifying under
subdivision (a) were recorded messages, a copy of the recording
shall be maintained for that period.

begin delete SECTION 1. end delete
begin insert SEC. 4. end insert   

Section 84501 of the Government Code is amended
to read:

84501.  

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

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

(2) “Advertisement” does not include any of the following:

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

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

(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.

(D) Wearing apparel.

(E) Sky writing.

(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.

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

(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.

(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.

(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.

(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:

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

(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.

(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.

begin delete SEC. 2. end delete
begin insert SEC. 5. end insert   

Section 84502 of the Government Code is repealed.

begin delete SEC. 3. end delete
begin insert SEC. 6. end insert   

Section 84502 is added to the Government Code, to
read:

84502.  

(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.

begin delete SEC. 4. end delete
begin insert SEC. 7. end insert   

Section 84503 of the Government Code is repealed.

begin delete SEC. 5. end delete
begin insert SEC. 8. end insert   

Section 84503 is added to the Government Code, to
read:

84503.  

(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.

begin delete SEC. 6. end delete
begin insert SEC. 9. end insert   

Section 84504 of the Government Code is repealed.

begin delete SEC. 7. end delete
begin insert SEC. 10. end insert   

Section 84504 is added to the Government Code, to
read:

84504.  

(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.

begin delete SEC. 8. end delete
begin insert SEC. 11. end insert   

Section 84504.1 is added to the Government Code,
to read:

84504.1.  

(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.

begin delete SEC. 9. end delete
begin insert SEC. 12. end insert   

Section 84504.2 is added to the Government Code,
to read:

84504.2.  

(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.

begin delete SEC. 10. end delete
begin insert SEC. 13. end insert   

Section 84504.3 is added to the Government Code,
to read:

84504.3.  

(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.

begin delete SEC. 11. end delete
begin insert SEC. 14. end insert   

Section 84505 of the Government Code is amended
to read:

84505.  

(a) In addition to the requirements of Sections 84502,
84503, 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 top contributor.

(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.

begin delete SEC. 12. end delete
begin insert SEC. 15. end insert   

Section 84506 of the Government Code is repealed.

begin delete SEC. 13. end delete
begin insert SEC. 16. end insert   

Section 84507 of the Government Code is repealed.

begin delete SEC. 14. end delete
begin insert SEC. 17. end insert   

Section 84508 of the Government Code is repealed.

begin delete SEC. 15. end delete
begin insert SEC. 18. end insert   

Section 84509 of the Government Code is repealed.

begin delete SEC. 16. end delete
begin insert SEC. 19. end insert   

Section 84509 is added to the Government Code, to
read:

84509.  

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.

begin delete SEC. 17. end delete
begin insert SEC. 20. end insert   

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 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, except
when the disclosure statement required by Section 84504.1 is being
shown.

(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. 21. end insert   

end insert

begin insert Section 85704 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

85704.  

begin insert (a) end insert begin insert   end insert A person may not make any contribution to begin delete a
committee on the condition or with the agreement that it will be
contributed end delete begin insert any committee or candidate that is earmarked for a
contribution end insert to any begin delete particular end delete begin insert other committee or end insert candidate unless
the contribution is fully disclosed pursuant to Section 84302.

begin insert

(b) For purposes of this section a contribution is earmarked if
the contribution is made under any of the following circumstances:

end insert begin insert

(1) The committee or candidate receiving the contribution
solicited the contribution for the purpose of making a contribution
to another committee or candidate, and requests the contributor
to consent to such use.

end insert begin insert

(2) The contribution was made subject to a condition,
agreement, or understanding with the donor that all or a portion
of the contribution would be used to make a contribution to another
committee or candidate including any circumstance in which the
donor identifies the committee or candidate as a potential recipient
of the contribution and the committee or candidate in fact receives
all or a portion of the donor’s contribution.

end insert begin insert

(3) After the contribution was made the contributor and the
committee or candidate receiving the contribution reached a
subsequent agreement or understanding that all or a portion of
the contribution would be used to make a contribution to another
committee or candidate including any circumstance in which the
donor identifies the committee or candidate as a potential recipient
of the contribution and the committee or candidate in fact receives
all or a portion of the donor’s contribution.

end insert

begin delete SEC. 18. end delete
begin insert SEC. 22. end 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.

begin delete SEC. 19. end delete
begin insert SEC. 23. end 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.

begin insert

begin insert SEC. 24. end insert   

end insert begin insert

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:

end insert begin insert

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
representatives 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.

end insert