Amended in Senate June 20, 2016

Amended in Assembly January 14, 2016

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 BillNo. 700


Introduced by Assembly Members Gomez and Levine

February 25, 2015


An act to amend Sectionsbegin insert 84305, 84310,end insert 84501, 84505,begin delete and 84511end deletebegin insert 84506.5, 84511, and 85704end 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.

LEGISLATIVE COUNSEL’S DIGEST

AB 700, as amended, Gomez. Political Reform Act of 1974:begin delete advertisement disclosures.end deletebegin insert campaign disclosures.end insert

(1) 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 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, a political party committee, and a slate mailer organization that expends campaign funds to pay for such telephone calls.

end insert
begin delete

(2)

end delete

begin insert(3)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

(4) 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 delete

(3)

end delete

begin insert(5)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 delete

(4)

end delete

begin insert(6)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 23 vote of each house and compliance with specified procedural requirements.

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

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 84305 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

84305.  

(a) Except as provided in subdivision (b),begin delete no candidate
4orend delete
begin insert a candidate, candidate controlled committee, or political partyend insert
5 committee shallbegin insert notend insert send a mass mailing unless the name, street
6address, and city of the candidate or committee are shown on the
7outside of each piece of mail in the mass mailing and on at least
8one of the inserts included within each piece of mail of the mailing
9in no less than 6-point type which shall be in a color or print which
10contrasts with the background so as to be easily legible. A post
P4    1office box may be stated in lieu of a street address if the
2begin delete organization’send deletebegin insert candidateend insertbegin insert’s, controlled committee’s, or political
3party committee’send insert
address is a matter of public record with the
4Secretary of State.

5(b) If the sender of the mass mailing is a single candidate or
6committee, the name, street address, and city of the candidate or
7committee need only be shown on the outside of each piece of
8mail.

9(c) If the sender of a mass mailing is a controlled committee,
10the name of the person controlling the committee shall be included
11in addition to the information required by subdivision (a).

begin insert

12
(d) For purposes of this section, the sender is the candidate or
13committee who pays for the largest portion of expenditures
14attributable to the designing, printing, and posting of the mailing
15which are reportable under Sections 84200 to 84217, inclusive.

end insert
begin insert

16
(e) For purposes of this section, to pay for a share of the cost
17of a mass mailing means to make, to promise to make, or to incur
18an obligation to make, any payment for either of the following:

end insert
begin insert

19
(1) To any person for the design, printing, postage, materials
20or other costs, including salaries, fees, or commissions, of the
21mailing.

end insert
begin insert

22
(2) As a fee or other consideration for an endorsement or, in
23the case of a ballot measure, support or opposition in the mailing.

end insert
24begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 84310 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
25read:end insert

26

84310.  

(a) A candidate,begin insert candidate controlled committee,
27political partyend insert
committee, or slate mailer organizationbegin delete mayend deletebegin insert shallend insert
28 not expend campaign funds, directly or indirectly, to pay for
29telephone calls that are similar in nature and aggregate 500 or more
30in number, made by an individual, or individuals, or by electronic
31means and that advocate support of, or opposition to, a candidate,
32ballot measure, or both, unless during the course of each call the
33name of thebegin insert candidate, candidate controlled committee, political
34party committee, or slate mailerend insert
organization that authorized or
35paid for the call is disclosed to the recipient of the call. Unless the
36organization that authorized the call and in whose name it is placed
37has filing obligations under this title, and the name announced in
38the call either is the full name by which the organization or
39individual is identified in any statement or report required to be
40filed under this title or is the name by which the organization or
P5    1individual is commonly known, the candidate, committee, or slate
2mailer organization that paid for the call shall be disclosed. This
3section shall not apply to telephone calls made by the candidate,
4the campaign manager, or individuals who are volunteers.

5(b) Campaign and ballot measure committees are prohibited
6from contracting with any phone bank vendor that does not disclose
7the information required to be disclosed by subdivision (a).

8(c) A candidate, committee, or slate mailer organization that
9pays for telephone calls as described in subdivision (a) shall
10maintain a record of the script of the call for the period of time set
11forth in Section 84104. If any of the calls qualifying under
12subdivision (a) were recorded messages, a copy of the recording
13shall be maintained for that period.

14

begin deleteSECTION 1.end delete
15
begin insertSEC. 3.end insert  

Section 84501 of the Government Code is amended
16to read:

17

84501.  

For purposes of this article the following terms have
18the following meanings:

19(a) (1) “Advertisement” means any general or public
20communication which is authorized and paid for by a committee
21for the purpose of supporting or opposing a candidate or candidates
22for elective office or a ballot measure or ballot measures.

23(2) “Advertisement” does not include any of the following:

24(A) A communication paid for by a political party committee
25or a candidate controlled committee established forbegin insert anend insert elective
26office for the controlling candidate.

27(B) A communication from an organization, other than a political
28party, to its members.

29(C) A campaign button smaller than 10 inches in diameter; a
30bumper sticker smaller than 60 square inches; or a small tangible
31promotional item, such as a pen, pin, or key chain, upon which the
32disclosures required by this article cannot be conveniently printed
33or displayed.

34(D) Wearing apparel.

35(E) Sky writing.

36(F) An electronic media communicationbegin delete whereend deletebegin insert ifend insert inclusion of
37the disclosures required bybegin delete Sectionsend deletebegin insert Sectionend insert 84502, 84503, or
3884506.5, is impracticable or would severely interfere with the
39committee’s ability to convey the intended message because of
40the nature of the technology used to make the communication.

P6    1(G) Any otherbegin delete advertisementend deletebegin insert communicationend insert as determined by
2regulations of the Commission.

3(b) “Cumulative contributions” means the cumulative amount
4of contributions received by a committee beginning 12 months
5prior to the date of the expenditure and ending seven days before
6the time the advertisement is sent to the printer or broadcaster.

7(c) (1) “Top contributors” means the persons from whom the
8committee paying for an advertisement has received its three
9highest cumulative contributions of fifty thousand dollars ($50,000)
10or more.

11(2) If two or more contributors of identical amounts qualify as
12top contributors, the most recent contributor of that amount shall
13be listed as the top contributor in any disclosure required by Section
1484503.

15(3) If a contributor appears to qualify as a top contributor but
16received earmarked funds to make the contribution, the person or
17committee that earmarked the funds and gave those funds to the
18contributor shall instead be disclosed as the top contributor if they
19qualified as such. The person or committee transferring earmarked
20funds shall disclose the true source of the funds to the committee
21receiving the earmarked funds at the time the funds are transferred.
22Funds are “earmarked” in the following circumstances:

23(A) The contributor solicited and received the funds from donors
24for the purpose of making a contribution to the committee paying
25for the advertisement.

26(B) The funds were given to the contributor subject to a
27condition, agreement, or understanding with the donor that all or
28a portion would be used to make a contribution to the committee
29paying for the advertisement, including any circumstance where
30the donor identifies the committee as a potential recipient of the
31contribution and the committee in fact receives all or a portion of
32the donor’s contribution.

33(C) The contributor had existing funds from a donor and a
34subsequent agreement or understanding was reached with the donor
35that all or a portion of the funds would be used to contribute to the
36committee paying for the advertisement, including any
37circumstance where the donor identifies the committee as a
38potential recipient of the contribution and the committee in fact
39receives all or a portion of the donor’s contribution.

P7    1

begin deleteSEC. 2.end delete
2
begin insertSEC. 4.end insert  

Section 84502 of the Government Code is repealed.

3

begin deleteSEC. 3.end delete
4
begin insertSEC. 5.end insert  

Section 84502 is added to the Government Code, to
5read:

6

84502.  

(a) Any advertisement paid for by a committee pursuant
7to subdivision (a) of Section 82013 shall include the words “Paid
8for by” followedbegin delete byend deletebegin insert by, in all capital letters,end insert the name of the
9committee as it appears on the most recent Statement of
10Organization filed pursuant to Section 84101.

11(b) Any advertisement paid for by a committeebegin delete as defined byend delete
12begin insert pursuant to end insertsubdivision (b) or (c) of Section 82013 shall include
13the words “Paid for by” followedbegin delete byend deletebegin insert by, in all capital letters,end insert the
14name that the filer is required to use on campaign statements
15pursuant to subdivision (o) of Section 84211.

16

begin deleteSEC. 4.end delete
17
begin insertSEC. 6.end insert  

Section 84503 of the Government Code is repealed.

18

begin deleteSEC. 5.end delete
19
begin insertSEC. 7.end insert  

Section 84503 is added to the Government Code, to
20read:

21

84503.  

(a) Any advertisement paid for by a committee pursuant
22to subdivision (a) of Section 82013 shall include the words “This
23committee has major funding from” followed by the names of the
24top contributors to the committee paying for the advertisement. If
25fewer than three contributors qualify as top contributors, only those
26contributors that qualify shall be disclosed pursuant to this section.
27If there are no contributors that qualify as top contributors, this
28disclosure is not required. If the content of thebegin insert radioend insert advertisement
29begin insert or telephonic messageend insert names each of the top contributors as major
30funding sources of the committee, this disclosure is not required.

31(b) The disclosure of a top contributor pursuant to this section
32need not include legal terms such as “incorporated,” “committee,”
33“political action committee,” or “corporation,” or abbreviations
34of these terms, unless the term is part of the contributor’s name in
35common usage or parlance.

36(c) If this article requires the disclosure of the name of a top
37contributor that is a committee pursuant to subdivision (a) of
38Section 82013 and is a sponsored committee pursuant tobegin insert Sectionend insert
39 82048.7 with a single sponsor, only the name of the single
40sponsoring organization shall be disclosed.

P8    1(d) This section does not apply to a committee as defined by
2subdivision (b) or (c) of Section 82013 or a political party
3committee.

4

begin deleteSEC. 6.end delete
5
begin insertSEC. 8.end insert  

Section 84504 of the Government Code is repealed.

6

begin deleteSEC. 7.end delete
7
begin insertSEC. 9.end insert  

Section 84504 is added to the Government Code, to
8read:

9

84504.  

(a) An advertisement that is disseminated over the
10radio or by telephonic means shall include the disclosures required
11by Sections 84502, 84503, and 84506.5 at the beginning or end of
12the advertisement, read in a clearly spoken manner and in a pitch
13and tone substantially similar to the rest of the advertisement, and
14shall last no less than three seconds.

15(b) Notwithstanding the definition of “top contributors” in
16paragraph (1) of subdivision (c) of Section 84501, radio and
17prerecorded telephonic advertisements shall be required to disclose
18only the single top contributor of fifty thousand dollars ($50,000)
19or more.

20

begin deleteSEC. 8.end delete
21
begin insertSEC. 10.end insert  

Section 84504.1 is added to the Government Code,
22to read:

23

84504.1.  

(a) An advertisement that is disseminated as a video,
24including advertisements on television and videos disseminated
25over the Internet, shall include the disclosures required by Sections
2684502 and 84503 at the beginning or end of the advertisement.

27(b) The disclosure required by subdivision (a) shall be written
28and displayed for at least five seconds of a broadcast of thirty
29seconds or less or for at least ten seconds of a broadcast that lasts
30longer than thirty seconds.

31(1) The written disclosure required by subdivision (a) shall
32appear on a solid black background on the entire bottom one-third
33of the television or video display screen and shall be in a
34contrasting color in Arial equivalent type, and the type size for the
35tallest letters in the written disclosure shall be exactly 4 percent
36of the height of the television or video display screen. The top
37contributors, if any, shall each be disclosed on a separate horizontal
38line, in descending order, beginning with the top contributor who
39made the largest cumulative contributions on the first line. The
40name of each of the top contributors shall be centered horizontally.
P9    1If the names of the top three contributors exceed or cause the
2disclosure to exceed one-third of the television or video display
3screen, the percent of the height of the type size shall be reduced
4to the minimum amount necessary to provide for full disclosure
5of the top contributors. The written disclosures required by Sections
684502 and 84503 shall be underlined, except for the names of the
7top contributors, if any.

8(2) begin deleteCommittees end deletebegin insertA committee end insertsubject to Section 84223 shall
9include the text “Funding Details At [insert Commission Internet
10Web site with information required to be posted by subdivision
11(c) of Section 84223].” The text shall be in contrasting color in
12Arial equivalent type and the type size shall be equivalent to at
13least 2.5 percent of the height of the television or video display
14screen.

15(3) If using a type size of 4 percent of the height of the television
16or video display screen causes the name of any of the top
17contributors to exceed the width of the screen, the type sizes of
18the name of the contributor that exceeds the width of the screen
19shall be reduced until it fits on the width of the screen, but in no
20case shall the type size be smaller than 2.5 percent of the height
21of the screen.

22

begin deleteSEC. 9.end delete
23
begin insertSEC. 11.end insert  

Section 84504.2 is added to the Government Code,
24to read:

25

84504.2.  

(a) A print advertisement shall include the disclosures
26required by Sections 84502, 84503, and 84506.5, displayed as
27follows:

28(1) The disclosure area shall have a solid white background and
29shall be in a printed or drawn box on the bottom of at least one
30page that is set apart from any other printed matter. All text in the
31disclosure area shall be in contrasting color.

32(2) The text shall be in an Arial equivalent type with a type size
33of at least 10-point for printed advertisements designed to be
34individually distributed, including, but not limited to, mailers,
35flyers, and door hangers.

36(3) The top contributors, if any, shall each be disclosed on a
37separate horizontal line, in descending order, beginning with the
38top contributor who made the largest cumulative contributions on
39the first line. The name of each of the top contributors shall be
40centered horizontally in the disclosure area.

P10   1(4) Immediately below the text described in paragraph (3),
2committees subject to Section 84223 shall include the text
3“Funding Details At [insert Commission Internet Web site with
4information required to be posted by subdivision (c) of Section
584223].” The text shall be in an Arial equivalent type with a type
6size of at least 10-point for printed advertisements designed to be
7individually distributed,begin delete includingend deletebegin insert including,end insert but not limitedbegin delete toend deletebegin insert to,end insert
8 mailers,begin delete flyersend deletebegin insert flyers,end insert and door hangers.

9(b) Notwithstanding paragraphs (2) and (4) of subdivision (a),
10the disclosure on a printed advertisement that is larger than those
11designed to be individually distributed, including, but not limited
12to, yard signs or billboards, shall be in Arial equivalent type with
13a type size of at least 10 percent of the height of the advertisement,
14and printed on a solid background with sufficient contrast that is
15easily readable by the average person.

16(c) Notwithstanding the definition of “top contributors” in
17paragraph (1) of subdivision (c) of Section 84501, newspaper,
18magazine, or other public print advertisements that are 20 square
19inches or less shall be required to disclose only the single top
20contributor of fifty thousand dollars ($50,000) or more.

21

begin deleteSEC. 10.end delete
22
begin insertSEC. 12.end insert  

Section 84504.3 is added to the Government Code,
23to read:

24

84504.3.  

(a) An electronic media advertisement shall do all
25of the following:

26(1) Contain the disclosures required by Sections 84502, 84503,
27and 84506.5 in a type size and font that isbegin delete easily readable by the
28average viewer,end delete
begin insert clear and conspicuous,end insert visible for a period of at
29least four seconds and contrasts with the background so as to be
30easily readable by the average person, unlessbegin delete impractical.end delete
31
begin insert impractical or would severely interfere with a committee’s ability
32to convey the intended message because of the nature of the
33technology used to make the communication. The Commission
34may prescribe by regulation minimal disclaimer requirements if
35inclusion of the full disclaimer is deemed impractical.end insert

36(2) Hyperlink to an Internet Web site containing the text required
37by paragraph (1).

38(b) An Internet Web site that is hyperlinked to as provided for
39in paragraph (2) of subdivision (a) shall remain online and available
40to the public until 30 days after the date of the electionbegin delete whereend deletebegin insert in
P11   1whichend insert
the candidate orbegin insert ballotend insert measure supported or opposed by
2the advertisement was voted upon.

3(c) An advertisement made via a form of electronic media that
4is audio only and therefore cannot include either of the disclaimers
5in subdivision (a) shall comply with the disclaimer requirements
6for radio advertisements in Section 84504.

7(d) An advertisement made via a form of electronic media that
8allows users to engage in discourse and post content, or any other
9type of social media, shall only be required to include the
10disclaimer required by subdivision (a) on the committee’s home
11page, landing page, or similar location and shall not be required
12to include the disclaimer required by subdivision (a) on each
13individual post, comment, or other similar communication.

14(e) The disclaimer required by this section does not apply to
15advertisements made via social media where the only expense or
16cost of the communication is compensated staff time unless the
17social media account where the content is posted was created only
18for the purpose of advertisements governed by this title.

19

begin deleteSEC. 11.end delete
20
begin insertSEC. 13.end insert  

Section 84505 of the Government Code is amended
21to read:

22

84505.  

(a) In addition to the requirements of Sections 84502,
2384503, and 84506.5, the committee placing the advertisement or
24persons acting in concert with that committee shall be prohibited
25from creating or using a noncandidate-controlled committee or a
26nonsponsored committee to avoid, or that results in the avoidance
27of, the disclosure of any individual, industry, business entity,
28controlled committee, or sponsored committee as a top contributor.

29(b) Written disclosures required by Sectionsbegin delete 84502, 84503,end delete
30begin insert 84503end insert and 84506.5 shall not appear in all capital letters provided,
31however, capital letters shall be permitted for the beginning of a
32sentence, the beginning of a proper name or location, or as
33otherwise required by conventions of the English language.

34

begin deleteSEC. 12.end delete
35
begin insertSEC. 14.end insert  

Section 84506 of the Government Code is repealed.

36begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 84506.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert

38

84506.5.  

(a) An advertisement supporting or opposing a
39candidate that is paid for by an independent expenditure must
40include the following statementbegin insert in 14-point fontend insert: This advertisement
P12   1was not authorized or paid for by a candidate for this office or a
2committee controlled by a candidate for this office.

3(b) begin deleteIn addition to the requirements of Section 84507, a end deletebegin insertA end insertmailed
4advertisement subject to this section shall also comply with each
5of the following:

6(1) The disclosure statement in subdivision (a) shall be located
7within one quarter of an inch of the recipient’s name and address
8as printed on the advertisement.

9(2) The text of the disclosure statement shall be contained in a
10box with an outline that has a line weight of at least 3.25 pt. The
11background color of the box shall be in a contrasting color to the
12background of the advertisement. The outline of the box shall be
13in a contrasting color to both the background color of the
14advertisement and the background color of the box. The color of
15the text shall be in a contrasting color to the background color of
16the box.

17

begin deleteSEC. 13.end delete
18
begin insertSEC. 16.end insert  

Section 84507 of the Government Code is repealed.

19

begin deleteSEC. 14.end delete
20
begin insertSEC. 17.end insert  

Section 84508 of the Government Code is repealed.

21

begin deleteSEC. 15.end delete
22
begin insertSEC. 18.end insert  

Section 84509 of the Government Code is repealed.

23

begin deleteSEC. 16.end delete
24
begin insertSEC. 19.end insert  

Section 84509 is added to the Government Code, to
25read:

26

84509.  

If the order of top contributors required to be disclosed
27pursuant to this article changes or a new contributor qualifies as
28a top contributor, the disclosure in the advertisement shall be
29updated as follows:

30(a) A television, radio, telephone, electronic billboard, or other
31electronic media advertisement shall be updated to reflect the new
32top contributors within seven business days, or five business days
33if the change in top contributors occurs within 30 days of an
34election.

35(b) A print media advertisement, including nonelectronic
36billboards, shall be updated to reflect the new top contributors
37prior to placing a new or modified order for additional printing of
38the advertisement.

P13   1

begin deleteSEC. 17.end delete
2
begin insertSEC. 20.end insert  

Section 84511 of the Government Code is amended
3to read:

4

84511.  

(a) This section applies to a committee that does either
5of the following:

6(1) Makes an expenditure of five thousand dollars ($5,000) or
7more to an individual for his or her appearance in an advertisement
8that supports or opposes the qualification, passage, or defeat of a
9ballot measure.

10(2) Makes an expenditure of any amount to an individual for
11his or her appearance in an advertisement that supports or opposes
12the qualification, passage, or defeat of a ballot measure and that
13states or suggests that the individual is a member of an occupation
14that requires licensure, certification, or other specialized,
15documented training as a prerequisite to engage in that occupation.

16(b) A committee described in subdivision (a) shall file, within
1710 days of the expenditure, a report that includes all of the
18following:

19(1) An identification of the measure that is the subject of the
20advertisement.

21(2) The date of the expenditure.

22(3) The amount of the expenditure.

23(4) The name of the recipient of the expenditure.

24(5) For a committee described in paragraph (2) of subdivision
25(a), the occupation of the recipient of the expenditure.

26(c) An advertisement paid for by a committee described in
27paragraph (1) of subdivision (a) shall include a disclosure statement
28stating “(spokesperson’s name) is being paid by this campaign or
29its donors” in highly visible font shown continuously if the
30advertisement consists of printed or televised material, or spoken
31in a clearly audible format if the advertisement is a radio broadcast
32or telephonic message. If the advertisement is a television or video
33advertisement, the statement shall be shown continuously, except
34when the disclosure statement required by Section 84504.1 is being
35shown.

36(d) (1) An advertisement paid for by a committee described in
37paragraph (2) of subdivision (a) shall include a disclosure statement
38stating “Persons portraying members of an occupation in this
39advertisement are compensated spokespersons not necessarily
40employed in those occupations” in highly visible font shown
P14   1continuously if the advertisement consists of printed or televised
2material, or spoken in a clearly audible format if the advertisement
3is a radio broadcast or telephonic message.

4(2) A committee may omit the disclosure statement required by
5this subdivision if all of the following are satisfied with respect to
6each individual identified in the report filed pursuant to subdivision
7(b) for that advertisement:

8(A) The occupation identified in the report is substantially
9similar to the occupation portrayed in the advertisement.

10(B) The committee maintains credible documentation of the
11appropriate license, certification, or other training as evidence that
12the individual may engage in the occupation identified in the report
13and portrayed in the advertisement and makes that documentation
14immediately available to the Commission upon request.

15begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 85704 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

85704.  

begin insert(a)end insertbegin insertend insert A personbegin delete mayend deletebegin insert shallend insert not make any contribution to
18begin delete a committee on the condition or with the agreement that it will be
19contributed to any particularend delete
begin insert any committee or candidate that is
20earmarked for a contribution to any other committee orend insert
candidate
21unless the contribution is fully disclosed pursuant to Section 84302.

begin insert

22
(b) For purposes of this section a contribution is earmarked if
23the contribution is made under any of the following circumstances:

end insert
begin insert

24
(1) The committee or candidate receiving the contribution
25solicited the contribution for the purpose of making a contribution
26to another committee or candidate and requested the contributor
27to consent to such use.

end insert
begin insert

28
(2) The contribution was made subject to a condition,
29agreement, or understanding with the contributor that all or a
30portion of the contribution would be used to make a contribution
31to another committee or candidate, including any circumstance
32in which the contributor identifies the committee or candidate as
33a potential recipient of the contribution and the committee or
34candidate in fact receives all or a portion of the contributor’s
35contribution.

end insert
begin insert

36
(3) After the contribution was made, the contributor and the
37committee or candidate receiving the contribution reaching a
38 subsequent agreement or understanding that all or a portion of
39the contribution would be used to make a contribution to another
40committee or candidate, including any circumstance in which the
P15   1contributor identifies the committee or candidate as a potential
2recipient of the contribution and the committee or candidate in
3fact receives all or a portion of the contributor’s contribution.

end insert
4

begin deleteSEC. 18.end delete
5
begin insertSEC. 22.end insert  

No reimbursement is required by this act pursuant to
6Section 6 of Article XIII B of the California Constitution because
7the only costs that may be incurred by a local agency or school
8district will be incurred because this act creates a new crime or
9infraction, eliminates a crime or infraction, or changes the penalty
10for a crime or infraction, within the meaning of Section 17556 of
11the Government Code, or changes the definition of a crime within
12the meaning of Section 6 of Article XIII B of the California
13Constitution.

14

begin deleteSEC. 19.end delete
15
begin insertSEC. 23.end insert  

The Legislature finds and declares that this bill
16furthers the purposes of the Political Reform Act of 1974 within
17the meaning of subdivision (a) of Section 81012 of the Government
18Code.



O

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