Amended in Senate June 30, 2016

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 Sections 84305, 84310, 84501, 84505, 84506.5, 84511, and 85704 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: campaign disclosures.

(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.

(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.

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.

(3) The act also requires advertisements, as defined, to include prescribed disclosure statements, including, among others, a requirement that the disclosurebegin delete statementend deletebegin insert statementsend insert 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 contributorsbegin delete ofend deletebegin insert toend insert 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 thatbegin delete isend deletebegin insert areend insert specific to radio and telephone, television and video, print, and electronic media advertisements.

(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.

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.

(5) 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.

(6) 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    1

SECTION 1.  

Section 84305 of the Government Code is
2amended to read:

3

84305.  

(a) Except as provided in subdivision (b), a candidate,
4candidate controlled committee, or political party committee shall
5not send a mass mailing unless the name, street address, and city
6of the candidate or committee are shown on the outside of each
7piece of mail in the mass mailing and on at least one of the inserts
8included within each piece of mail of the mailing in no less than
96-point typebegin delete which shall beend deletebegin insert that isend insert in a color or printbegin delete whichend deletebegin insert thatend insert
10 contrasts with the background so as to be easily legible. A post
11office box may be stated in lieu of a street address if the
P4    1 candidate’s, controlled committee’s, or political party committee’s
2address is a matter of public record with the Secretary of State.

3(b) If the sender of the mass mailing is a single candidate or
4committee, the name, street address, and city of the candidate or
5committee need only be shown on the outside of each piece of
6mail.

7(c) If the sender of a mass mailing is a controlled committee,
8the name of the person controlling the committee shall be included
9in addition to the information required by subdivision (a).

10(d) For purposes of this section, the sender is the candidate or
11committee who pays for the largest portion of expenditures
12attributable to the designing, printing, and posting of the mailing
13which are reportable under Sections 84200 to 84217, inclusive.

14(e) For purposes of this section, to pay for a share of the cost
15of a mass mailing means to make, to promise to make, or to incur
16an obligation to make, any payment for either of the following:

17(1) To any person for the design, printing, postage, materials
18or other costs, including salaries, fees, or commissions, of the
19mailing.

20(2) As a fee or other consideration for an endorsement or, in the
21case of a ballot measure, support or opposition in the mailing.

22

SEC. 2.  

Section 84310 of the Government Code is amended
23to read:

24

84310.  

(a) A candidate, candidate controlled committee,
25political party committee, or slate mailer organization shall not
26expend campaign funds, directly or indirectly, to pay for telephone
27calls that are similar in nature and aggregate 500 or more in
28number, made by an individual, or individuals, or by electronic
29means and that advocate support of, or opposition to, a candidate,
30ballot measure, or both, unless during the course of each call the
31name of the candidate, candidate controlled committee, political
32party committee, or slate mailer organization that authorized or
33paid for the call is disclosed to the recipient of the call. Unless the
34organization that authorized the call and in whose name it is placed
35has filing obligations under this title, and the name announced in
36the call either is the full name by which the organization or
37individual is identified in any statement or report required to be
38filed under this title or is the name by which the organization or
39individual is commonly known, the candidate, committee, or slate
40mailer organization that paid for the call shall be disclosed. This
P5    1section shall not apply to telephone calls made by the candidate,
2the campaign manager, or individuals who are volunteers.

3(b) Campaign and ballot measure committees are prohibited
4from contracting with any phone bank vendor that does not disclose
5the information required to be disclosed by subdivision (a).

6(c) A candidate, committee, or slate mailer organization that
7pays for telephone calls as described in subdivision (a) shall
8maintain a record of the script of the call for the period of time set
9forth in Section 84104. If any of the calls qualifying under
10subdivision (a) were recorded messages, a copy of the recording
11shall be maintained for that period.

12

SEC. 3.  

Section 84501 of the Government Code is amended
13to read:

14

84501.  

For purposes of this article the following terms have
15the following meanings:

16(a) (1) “Advertisement” means any general or public
17communication which is authorized and paid for by a committee
18for the purpose of supporting or opposing a candidate or candidates
19for elective office or a ballot measure or ballot measures.

20(2) “Advertisement” does not include any of the following:

21(A) A communication paid for by a political party committee
22or a candidate controlled committee established for an elective
23office for the controlling candidate.

24(B) A communication from an organization, other than a political
25party, to its members.

26(C) A campaign button smaller than 10 inches in diameter; a
27bumper sticker smaller than 60 square inches; or a small tangible
28promotional item, such as a pen, pin, or key chain, upon which the
29disclosures required by this article cannot be conveniently printed
30or displayed.

31(D) Wearing apparel.

32(E) Sky writing.

33(F) An electronic media communication if inclusion of the
34disclosures required by Section 84502, 84503, or 84506.5, is
35impracticable or wouldbegin delete severelyend deletebegin insert substantivelyend insert interfere with the
36committee’s ability to convey the intended message because of
37the nature of the technology used to make the communication.

38(G) Any other communication as determined by regulations of
39the Commission.

P6    1(b) “Cumulative contributions” means the cumulative amount
2of contributions received by a committee beginning 12 months
3begin delete prior toend deletebegin insert beforeend insert the date of the expenditure and ending seven days
4before the time the advertisement is sent to the printer or
5broadcaster.

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

10(2) If two or more contributors of identical amounts qualify as
11top contributors, the most recent contributor of that amount shall
12be listed as the top contributor in any disclosure required by Section
1384503.

14(3) If a contributor appears to qualify as a top contributor but
15received earmarked funds to make the contribution, the person or
16committee that earmarked the funds and gave those funds to the
17contributor shall instead be disclosed as the top contributor if they
18begin delete qualifiedend deletebegin insert qualifyend insert as such. The person or committee transferring
19earmarked funds shall disclose the true source of the funds to the
20committee receiving the earmarked funds at the time the funds are
21begin delete transferred.end deletebegin insert transferred, and the committee receiving those funds
22may reasonably rely upon that disclosure for purposes of
23complying with Section 84503.end insert
Funds are “earmarked” in the
24following circumstances:

25(A) The contributor solicited and received the funds from donors
26for the purpose of making a contribution to the committee paying
27for the advertisement.

28(B) The funds were given to the contributor subject to a
29condition, agreement, or understanding with the donor that all or
30a portion would be used to make a contribution to the committee
31paying for the advertisement, including any circumstance where
32the donor identifies the committee as a potential recipient of the
33contribution and the committee in fact receives all or a portion of
34the donor’s contribution.

35(C) The contributor had existing funds from a donor and a
36subsequent agreement or understanding was reached with the donor
37that all or a portion of the funds would be used to contribute to the
38committee paying for the advertisement, including any
39circumstance where the donor identifies the committee as a
P7    1potential recipient of the contribution and the committee in fact
2receives all or a portion of the donor’s contribution.

3

SEC. 4.  

Section 84502 of the Government Code is repealed.

4

SEC. 5.  

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” followed by, in all capital letters, the name of the committee
9as it appears on the most recent Statement of Organization filed
10pursuant to Section 84101.

11(b) Any advertisement paid for by a committee pursuant to
12subdivision (b) or (c) of Section 82013 shall include the words
13“Paid for by” followed by, in all capital letters, the name that the
14filer is required to use on campaign statements pursuant to
15subdivision (o) of Section 84211.

16

SEC. 6.  

Section 84503 of the Government Code is repealed.

17

SEC. 7.  

Section 84503 is added to the Government Code, to
18read:

19

84503.  

(a) Any advertisement paid for by a committee pursuant
20to subdivision (a) of Section 82013 shall include the words “This
21committee has major funding from” followed by the names of the
22top contributors to the committee paying for the advertisement. If
23fewer than three contributors qualify as top contributors, only those
24contributors that qualify shall be disclosed pursuant to this section.
25If there are no contributors that qualify as top contributors, this
26disclosure is not required. If the content of the radio advertisement
27or telephonic message names each of the top contributors as major
28funding sources of the committee, this disclosure is not required.

29(b) The disclosure of a top contributor pursuant to this section
30need not includebegin delete legalend delete terms such as “incorporated,” “committee,”
31“political action committee,” or “corporation,” or abbreviations
32of these terms, unless the term is part of the contributor’s name in
33common usage or parlance.

34(c) If this article requires the disclosure of the name of a top
35contributor that is a committee pursuant to subdivision (a) of
36Section 82013 and is a sponsored committee pursuant to Section
3782048.7 with a single sponsor, only the name of the single
38sponsoring 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

SEC. 8.  

Section 84504 of the Government Code is repealed.

5

SEC. 9.  

Section 84504 is added to the Government Code, to
6read:

7

84504.  

(a) An advertisement that is disseminated over the
8radio or by telephonic means shall include the disclosures required
9by Sections 84502, 84503, and 84506.5 at the beginning or end of
10the advertisement, read in a clearly spoken manner and in a pitch
11and tone substantially similar to the rest of the advertisement, and
12shall last no less than three seconds.

13(b) Notwithstanding the definition of “top contributors” in
14paragraph (1) of subdivision (c) of Section 84501, radio and
15prerecorded telephonic advertisements shall be required to disclose
16only the single top contributor of fifty thousand dollars ($50,000)
17or more.

18

SEC. 10.  

Section 84504.1 is added to the Government Code,
19to read:

20

84504.1.  

(a) An advertisement that is disseminated as a video,
21including advertisements on television and videos disseminated
22over the Internet, shall include the disclosures required by Sections
2384502 and 84503 at the beginning or end of the advertisement.

24(b) The disclosure required by subdivision (a) shall be written
25and displayed for at least five seconds of a broadcast of thirty
26seconds or less or for at least ten seconds of a broadcast that lasts
27longer than thirty seconds.

28(1) The written disclosure required by subdivision (a) shall
29appear on a solid black background on the entire bottom one-third
30of the television or video display screen and shall be in a
31contrasting color in Arial equivalent type, and the type size for the
32tallest letters in the written disclosure shall be exactly 4 percent
33of the height of the television or video display screen. The top
34contributors, if any, shall each be disclosed on a separate horizontal
35line, in descending order, beginning with the top contributor who
36made the largest cumulative contributions on the first line. The
37name of each of the top contributors shall be centered horizontally.
38begin delete If the names of the top three contributors exceed or cause the
39disclosure to exceed one-third of the television or video display
40screen, the percent of the height of the type size shall be reduced
P9    1to the minimum amount necessary to provide for full disclosure
2of the top contributors.end delete
The written disclosures required by Sections
384502 and 84503 shall be underlined, except for the names of the
4top contributors, if any.

5(2) A committee subject to Section 84223 shall include the text
6“Funding Details At [insert Commission Internet Web site with
7information required to be posted by subdivision (c) of Section
884223].” The text shall be in contrasting color in Arial equivalent
9type and the type size shall be equivalent to at least 2.5 percent of
10the height of the television or video display screen.

11(3) If using a type size of 4 percent of the height of the television
12or video display screen causes the name of any of the top
13contributors to exceed the width of thebegin insert screen or causes the
14disclosures to exceed one-third of the television or video displayend insert

15 screen, the typebegin delete sizesend deletebegin insert sizeend insert of the name of thebegin delete contributor that
16exceeds the width of the screenend delete
begin insert top contributorend insert shall be reduced
17untilbegin delete itend deletebegin insert the top contributor’s nameend insert fits on the width of thebegin insert screen
18or the entire disclosure fits within one-third of the television or
19video displayend insert
screen, but in no case shall the type size be smaller
20than 2.5 percent of the height of the screen.

21

SEC. 11.  

Section 84504.2 is added to the Government Code,
22to read:

23

84504.2.  

(a) A print advertisement shall include the disclosures
24required by Sections 84502, 84503, and 84506.5, displayed as
25follows:

26(1) The disclosure area shall have a solid white background and
27shall be in a printed or drawn box on the bottom of at least one
28page that is set apart from any other printed matter. All text in the
29disclosure area shall be in contrasting color.

30(2) The text shall be in an Arial equivalent type with a type size
31of at least 10-point for printed advertisements designed to be
32individually distributed, including, but not limited to, mailers,
33flyers, and door hangers.

34(3) The top contributors, if any, shall each be disclosed on a
35separate horizontal line, in descending order, beginning with the
36top contributor who made the largest cumulative contributions on
37the first line. The name of each of the top contributors shall be
38centered horizontally in the disclosure area.

39(4) Immediately below the text described in paragraph (3),
40committees subject to Section 84223 shall include the text
P10   1“Funding Details At [insert Commission Internet Web site with
2information required to be posted by subdivision (c) of Section
384223].” The text shall be in an Arial equivalent type with a type
4size of at least 10-point for printed advertisements designed to be
5individually distributed, including, but not limited to, mailers,
6flyers, and door hangers.

7(b) Notwithstanding paragraphs (2) and (4) of subdivision (a),
8thebegin delete disclosureend deletebegin insert disclosures required by Sections 84502, 84503, and
984506.5end insert
on a printed advertisement that is larger than those
10designed to be individually distributed, including, but not limited
11to, yard signs or billboards, shall be in Arial equivalent type with
12a type size of at leastbegin delete 10end deletebegin insert 5end insert percent of the height of the
13advertisement, and printed on a solid background with sufficient
14contrast that is easily readable by the average person.begin insert The text may
15be adjusted so it does not appear on separate horizontal lines,
16with the top contributors separated by a comma.end insert

17(c) Notwithstanding the definition of “top contributors” in
18paragraph (1) of subdivision (c) of Section 84501, newspaper,
19magazine, or other public print advertisements that are 20 square
20inches or less shall be required to disclose only the single top
21contributor of fifty thousand dollars ($50,000) or more.

22

SEC. 12.  

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 is clear and conspicuous,
28visible for a period of at least four seconds and contrasts with the
29background so as to be easily readable by the average person,
30unless impractical or wouldbegin delete severelyend deletebegin insert substantivelyend insert interfere with
31a committee’s ability to convey the intended message because of
32the nature of the technology used to make the communication. The
33Commission may prescribe by regulation minimal disclaimer
34requirements if inclusion of the full disclaimer is deemed
35impractical.

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 election in which
P11   1 the candidate or ballot measure supported or opposed by the
2advertisement 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

SEC. 13.  

Section 84505 of the Government Code is amended
20to read:

21

84505.  

(a) In addition to the requirements of Sections 84502,
2284503, and 84506.5, the committee placing the advertisement or
23persons acting in concert with that committee shall be prohibited
24from creating or using a noncandidate-controlled committee or a
25nonsponsored committee to avoid, or that results in the avoidance
26of, the disclosure of any individual, industry, business entity,
27controlled committee, or sponsored committee as a top contributor.

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

33

SEC. 14.  

Section 84506 of the Government Code is repealed.

34

SEC. 15.  

Section 84506.5 of the Government Code is amended
35to read:

36

84506.5.  

(a) An advertisement supporting or opposing a
37candidate that is paid for by an independent expenditure must
38include the following statement in 14-point font: This
39advertisement was not authorized or paid for by a candidate for
40this office or a committee controlled by a candidate for this office.

P12   1(b) A mailed advertisement subject to this section shall also
2comply with each of the following:

3(1) The disclosure statement in subdivision (a) shall be located
4within one quarter of an inch of the recipient’s name and address
5as printed on the advertisement.

6(2) The text of the disclosure statement shall be contained in a
7box with an outline that has a line weight of at least 3.25 pt. The
8background color of the box shall be in a contrasting color to the
9background of the advertisement. The outline of the box shall be
10in a contrasting color to both the background color of the
11advertisement and the background color of the box. The color of
12the text shall be in a contrasting color to the background color of
13the box.

14

SEC. 16.  

Section 84507 of the Government Code is repealed.

15

SEC. 17.  

Section 84508 of the Government Code is repealed.

16

SEC. 18.  

Section 84509 of the Government Code is repealed.

17

SEC. 19.  

Section 84509 is added to the Government Code, to
18read:

19

84509.  

If the order of top contributors required to be disclosed
20pursuant to this article changes or a new contributor qualifies as
21a top contributor, the disclosure in the advertisement shall be
22updated as follows:

23(a) A television, radio, telephone, electronic billboard, or other
24electronic media advertisement shall be updated to reflect the new
25top contributors within seven business days, or five business days
26if the change in top contributors occurs within 30 days of an
27election.

28(b) A print media advertisement, including nonelectronic
29billboards, shall be updated to reflect the new top contributors
30begin delete prior toend deletebegin insert beforeend insert placing a new or modified order for additional
31printing of the advertisement.

32

SEC. 20.  

Section 84511 of the Government Code is amended
33to read:

34

84511.  

(a) This section applies to a committee that does either
35of the following:

36(1) Makes an expenditure of five thousand dollars ($5,000) or
37more to an individual for his or her appearance in an advertisement
38that supports or opposes the qualification, passage, or defeat of a
39ballot measure.

P13   1(2) Makes an expenditure of any amount to an individual for
2his or her appearance in an advertisement that supports or opposes
3the qualification, passage, or defeat of a ballot measure and that
4states or suggests that the individual is a member of an occupation
5that requires licensure, certification, or other specialized,
6documented training as a prerequisite to engage in that occupation.

7(b) A committee described in subdivision (a) shall file, within
810 days of the expenditure, a report that includes all of the
9following:

10(1) An identification of the measure that is the subject of the
11advertisement.

12(2) The date of the expenditure.

13(3) The amount of the expenditure.

14(4) The name of the recipient of the expenditure.

15(5) For a committee described in paragraph (2) of subdivision
16(a), the occupation of the recipient of the expenditure.

17(c) An advertisement paid for by a committee described in
18paragraph (1) of subdivision (a) shall include a disclosure statement
19stating “(spokesperson’s name) is being paid by this campaign or
20its donors” in highly visible font shown continuously if the
21advertisement consists of printed or televised material, or spoken
22in a clearly audible format if the advertisement is a radio broadcast
23or telephonic message. If the advertisement is a television or video
24advertisement, the statement shall be shown continuously, except
25when the disclosure statement required by Section 84504.1 is being
26shown.

27(d) (1) An advertisement paid for by a committee described in
28paragraph (2) of subdivision (a) shall include a disclosure statement
29stating “Persons portraying members of an occupation in this
30advertisement are compensated spokespersons not necessarily
31employed in those occupations” in highly visible font shown
32continuously if the advertisement consists of printed or televised
33material, or spoken in a clearly audible format if the advertisement
34is a radio broadcast or telephonic message.

35(2) A committee may omit the disclosure statement required by
36this subdivision if all of the following are satisfied with respect to
37each individual identified in the report filed pursuant to subdivision
38(b) for that advertisement:

39(A) The occupation identified in the report is substantially
40similar to the occupation portrayed in the advertisement.

P14   1(B) The committee maintains credible documentation of the
2appropriate license, certification, or other training as evidence that
3the individual may engage in the occupation identified in the report
4and portrayed in the advertisement and makes that documentation
5immediately available to the Commission upon request.

6

SEC. 21.  

Section 85704 of the Government Code is amended
7to read:

8

85704.  

(a) A person shall not make any contribution to any
9committee or candidate that is earmarked for a contribution to any
10other committee or candidate unless the contribution is fully
11disclosed pursuant to Section 84302.

12(b) For purposes of this section a contribution is earmarked if
13the contribution is made under any of the following circumstances:

14(1) The committee or candidate receiving the contribution
15solicited the contribution for the purpose of making a contribution
16to another committee or candidate and requested the contributor
17to consent to such use.

18(2) The contribution was made subject to a condition, agreement,
19or understanding with the contributor that all or a portion of the
20contribution would be used to make a contribution to another
21committee or candidate, including any circumstance in which the
22contributor identifies the committee or candidate as a potential
23recipient of the contribution and the committee or candidate in
24fact receives all or a portion of the contributor’s contribution.

25(3) After the contribution was made, the contributor and the
26committee or candidate receiving the contribution reaching a
27 subsequent agreement or understanding that all or a portion of the
28contribution would be used to make a contribution to another
29committee or candidate, including any circumstance in which the
30contributor identifies the committee or candidate as a potential
31recipient of the contribution and the committee or candidate in
32fact receives all or a portion of the contributor’s contribution.

33

SEC. 22.  

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35the only costs that may be incurred by a local agency or school
36district will be incurred because this act creates a new crime or
37infraction, eliminates a crime or infraction, or changes the penalty
38for a crime or infraction, within the meaning of Section 17556 of
39the Government Code, or changes the definition of a crime within
P15   1the meaning of Section 6 of Article XIII B of the California
2Constitution.

3

SEC. 23.  

The Legislature finds and declares that this bill
4furthers the purposes of the Political Reform Act of 1974 within
5the meaning of subdivision (a) of Section 81012 of the Government
6Code.



O

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