Amended in Senate August 17, 2016

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 Bill No. 700

Introduced by Assembly Members Gomez and Levine

February 25, 2015

An act to amend Sections begin insert 82025, end insert 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 begin delete the end delete begin insert that end insert 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 “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 describe circumstances in which a payment would be made for political purposes within the meaning of the definition of “expenditure.”

end insert begin delete

(2)

end delete

begin insert (3) end insert  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 begin delete committee, end delete begin insert committee established for an elective office for the controlling candidate, end insert a political party committee, and a slate mailer organization that expends campaign funds to pay for such telephone calls.

begin delete

(3)

end delete

begin insert (4) end insert  The act also requires advertisements, as defined, to include prescribed disclosure statements, including, among others, a requirement that the disclosure statements 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 begin delete political party committee or end delete person who is not a begin delete committee, end delete begin insert committee end insert and communications that involve wearing apparel, sky writing, and certain electronic media communications, as specified. begin insert The bill would prohibit specified entities from sending a mass electronic mailing, as defined, unless the name of the candidate or committee are shown in the electronic mailing preceded by the words “Paid for by” in at least the same size font as a majority of the text in the mass electronic mailing. end insert 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 to 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 are specific to radio and telephone, television and video, print, and electronic media advertisements.

begin delete

(4)

end delete

begin insert (5) end insert  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 begin insert , ballot measure, end insert 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.

begin delete

(5)

end delete

begin insert (6) 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

(6)

end delete

begin insert (7) 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.

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

The Legislature finds and declares both of the
following:

end insert begin insert

(a) For voters to make an informed choice in the political
marketplace, political advertisements should not intentionally
deceive voters about the identity of who or what interest is trying
to persuade them how to vote.

end insert begin insert

(b) Disclosing who or what interest paid for a political
advertisement will help voters be able to better evaluate the
arguments to which they are being subjected during political
campaigns and therefore make more informed voting decisions.

end insert

begin insert

begin insert SEC. 2. 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

(b) 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 any of the following:

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 described in paragraph (1), including, but not limited
to, a political action committee established by any membership
organization, labor union, or corporation.

end insert begin insert

(c) “Expenditure” includes any monetary or nonmonetary
payment made by any person, other than the persons or
organizations described in subdivision (b), that is used for
communications that 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

(1) “Clearly identified” is defined as follows:

end insert begin insert

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

end insert begin insert

(B) 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

(C) 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

(D) 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 the qualification drive.

end insert begin insert

(2) 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 60
days before 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

(A) Except for those communications paid for with public
moneys by a state or local government agency, 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 of
both of the following:

end insert begin insert

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

end insert begin insert

(ii) 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.

end insert begin insert

(B) The following non-exhaustive examples, referring to
candidates or measures on the ballot in an upcoming election,
illustrate statements that in most contexts would be susceptible of
no reasonable interpretation other than as an appeal to vote for
or against a specific candidate or measure: “Smith’s the One”:
“No Measure A”; “Rally ‘round O’Malley”; “Create jobs with
Measure X”; “Only Nancy Brown can clean out City Hall”;
“Proposition 123 - your last change to save California”; “Joe
Green will earn your trust”; “Bob Boone is an unqualified for
office and a special-interest puppet”; “Shirley Hall - bad for
California, bad for you.”

end insert begin insert

(C) The following non-exhaustive examples, referring to
candidates or measures on the ballot in an upcoming election,
illustrate statements that would be susceptible of a reasonable
interpretation other than as an appeal to vote for or against a
specific candidate or measure: “Assemblymember Nancy Brown
needs to be tough on criminals. Call her and tell her to stand firm
on AB 100”; “Poor children need a home too. Support the Mayor’s
stance against more budget cuts”; “Thank you, Supervisor Smith,
for continuing to support our farmers.”

end insert begin insert

(D) Safe Harbor. A communication does not expressly advocate
the nomination, election, or defeat of a candidate, or the
qualification, passage, or defeat of a measure, within the meaning
of this section, if both of the following apply:

end insert begin insert

(i) The communication does not mention an election, candidacy,
political party unless required by law, opposing candidate, or
voting by the general public, and it 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.

end insert begin insert

(ii) The communication 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

(E) Rules of Interpretation. If a communication does not qualify
for the safe harbor described in subparagraph (D), the Commission
shall consider whether the communication has an interpretation
other than as an appeal to vote for or against a clearly identified
candidate or measure, in order to determine whether, on balance,
the communication is susceptible of no reasonable interpretation
other than as an appeal to vote for or against a clearly identified
candidate or measure.

end insert begin insert

(3) Reporting Expenditures.

end insert begin insert

(A) The amount of an expenditure reportable pursuant to this
subdivision shall include all costs directly attributable to the
communication, including, but not limited to, salaries, production,
postage, space or time purchased, agency fees, printing, and any
additional administrative or overhead costs attributable to the
communication. The expenditure does not include any of the
regular ongoing business overhead that will be incurred in similar
amounts regardless of the communication.

end insert begin insert

(B) When a printed or broadcast communication circulates
outside the state, the expenditure may be calculated on the basis
of the fraction of the total cost attributable to circulation within
the state.

end insert begin insert

(C) Costs directly traceable to the communication are reportable
when the communication is made, or when payments are made in
connection with the development, production, or dissemination of
the communication, whichever occurs first.

end insert begin insert

(D) The costs of printing and distributing petitions, recruiting,
training and paying expenses of petition circulators, and other
costs incurred in connection with the qualification of a measure
are reportable expenditures.

end insert begin insert

(4) Notwithstanding this subdivision, “expenditure” does not
include costs incurred for communications that expressly advocate
the nomination, election, or defeat of a clearly identified candidate
or candidates, or the qualification, passage, or defeat of a clearly
identified measure or measures by either of the following:

end insert begin insert

(A) A broadcasting station, including a cable or satellite
television operation, programmer, or producer, Internet Web site,
or a regularly published newspaper, magazine, or other periodical
of general circulation, including an Internet or electronic
publication, that routinely carries news and commentary of general
interest, for the cost of covering or carrying a news story,
commentary, or editorial.

end insert begin insert

(B) A regularly published newsletter or regularly published
periodical, other than those specified in subparagraph (A), whose
circulation is limited to an organization’s members, employees,
shareholders, other affiliated individuals, and those who request
or purchase the publication. This subparagraph applies only to
the costs regularly incurred in publishing the newsletter or
periodical. If additional costs are incurred because the newsletter
or periodical is issued on other than its regular schedule, expanded
in circulation, or substantially altered in style, size, or format, the
additional costs are expenditures.

end insert begin insert

(5) The term expenditure also does not include uncompensated
Internet activity by an individual supporting or opposing a
candidate or measure as stated in Section 18215.2 of Division 6
of Title 2 of the California Code of Regulations.

end insert begin insert

(d) A payment used to make contributions, as defined in Section
82015, is an expenditure.

end insert

begin delete SECTION 1. end delete

begin insert SEC. 3. end insert   

Section 84305 of the Government Code is amended
to read:

84305.  

(a) Except as provided in subdivision (b), a candidate,
candidate controlled begin delete committee, end delete begin insert committee established for an
elective office for the controlling candidate, end insert or political party
committee shall not 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 that is in a color or print that 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 candidate’s,
controlled committee’s, or political party committee’s address is
a matter of public record with the Secretary of State.

begin insert

(b) A candidate, candidate controlled committee established
for an elective office for the controlling candidate, or political
party committee shall not send a mass electronic mailing unless
the name of the candidate or committee are shown in the electronic
mailing preceded by the words “Paid for by” in at least the same
size font as a majority of the text in the electronic mailing.

end insert begin delete

(b)

end delete

begin insert (c) end insert  If the sender of the mass mailing begin insert or mass electronic mailing end insert
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 begin delete mail. end delete begin insert mail or in the electronic mail itself. end insert

begin delete

(c)

end delete

begin insert (d) end insert  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 delete

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

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

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

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

end delete begin insert

(e) For purposes of this section, the following terms have the
following meaning:

end insert begin insert

(1) A “mass electronic mailing” has been made when more
than two hundred substantially similar pieces of electronic mail
have been sent within a calendar month.

end insert begin insert

(2) The “sender” is the candidate, candidate controlled
committee established for an elective office for the controlling
candidate, or political party committee who pays for the largest
portion of expenditures attributable to the designing, printing, and
posting of the mailing which are reportable pursuant to Sections
84200 to 84217, inclusive.

end insert begin insert

(3) To “pay for” a share of the cost of a mass mailing means
to make, to promise to make, or to incur an obligation to make,
any payment: (A) to any person for the design, printing, postage,
materials, or other costs of the mailing, including salaries, fees,
or commissions, or (B) as a fee or other consideration for an
endorsement or, in the case of a ballot measure, support or
opposition, in the mailing.

end insert

begin delete SEC. 2. end delete

begin insert SEC. 4. end insert   

Section 84310 of the Government Code is amended
to read:

84310.  

(a) A candidate, candidate controlled begin delete committee, end delete begin insert end insert
begin insert committee established for an elective office for the controlling
candidate, end insert political party committee, or slate mailer organization
shall 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 candidate, candidate controlled begin delete committee, end delete begin insert committee
established for an elective office for the controlling candidate, end insert
political party committee, or slate mailer 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,
begin insert candidate controlled committee established for an elective office
for the controlling candidate, political party end insert 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 SEC. 3. end delete

begin insert SEC. 5. 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 an 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 begin delete if end delete begin insert where end insert inclusion of
the disclosures required by Section 84502, 84503, or 84506.5, is
impracticable or would begin delete substantively end delete begin insert severely end insert 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 communication as determined by regulations of
the Commission.

(b) “Cumulative contributions” means the cumulative amount
of contributions received by a committee beginning 12 months
before 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 begin delete contributor if they
qualify as such. end delete begin insert contributor. end insert 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, and the committee receiving those funds may
reasonably rely upon that disclosure for purposes of complying
with Section 84503. Funds are “earmarked” in the following
circumstances:

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

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

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

begin delete SEC. 4. end delete

begin insert SEC. 6. end insert   

Section 84502 of the Government Code is repealed.

begin delete SEC. 5. end delete

begin insert SEC. 7. 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 begin delete by, in all capital letters, end delete begin insert by end insert 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 pursuant to
subdivision (b) or (c) of Section 82013 shall include the words
“Paid for by” followed begin delete by, in all capital letters, end delete begin insert by end insert the name that
the filer is required to use on campaign statements pursuant to
subdivision (o) of Section 84211.

begin delete SEC. 6. end delete

begin insert SEC. 8. end insert   

Section 84503 of the Government Code is repealed.

begin delete SEC. 7. end delete

begin insert SEC. 9. 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. begin delete If the content of the radio advertisement
or telephonic message names each of the top contributors as major
funding sources of the committee, this disclosure is not required. end delete

(b) The disclosure of a top contributor pursuant to this section
need not include 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 Section
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 begin delete 82013 or a political party
committee. end delete begin insert 82013. end insert

begin delete SEC. 8. end delete

begin insert SEC. 10. end insert   

Section 84504 of the Government Code is repealed.

begin delete SEC. 9. end delete

begin insert SEC. 11. 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 begin delete single top contributor end delete begin insert top two contributors end insert of fifty
thousand dollars ($50,000) or begin delete more. end delete begin insert more unless the advertisement
lasts 15 seconds or less or the disclosure statement would last
more than eight seconds, in which case only the single top
contributor of $50,000 or more shall be disclosed. end insert

begin delete SEC. 10. end delete

begin insert SEC. 12. 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 begin delete screen end delete begin insert screen, or bottom
one-fourth of the screen if the committee does not have or is
otherwise not required to list top contributors, end insert and shall be in a
contrasting color in Arial equivalent type, and the type size for the
begin delete tallest end delete begin insert smallest end insert letters in the written disclosure shall be begin delete exactly end delete 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. The written disclosures begin delete required by Sections 84502
and 84503 end delete shall be underlined, except for the names of the top
contributors, if any.

(2) A committee begin insert that is not subject to Section 84506.5 and that
is end insert subject to Section 84223 shall include the text “Funding Details
At [insert Commission Internet Web begin delete site with information required
to be posted by subdivision (c) of Section 84223].” end delete begin insert site]. end insert begin insert ” end insert The
text shall be in contrasting color begin insert to the background color required
in paragraph (1) end insert 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 or causes the
disclosures to exceed one-third of the television or video display
screen, the type size of the name of the top contributor shall be
reduced until the top contributor’s name fits on the width of the
screen or the entire disclosure fits within one-third of the television
or video display screen, but in no case shall the type size be smaller
than 2.5 percent of the height of the screen.

begin insert

(c) An advertisement that is an independent expenditure
supporting or opposing a candidate shall include the appropriate
statement from Section 84506.5 in the solid black background
described in paragraph (1) of subdivision (b) below all other text
required to appear in that area in a contrasting color and in Arial
equivalent type no less than 2.5 percent of the height of the
television or video display screen.

end insert

begin delete SEC. 11. end delete

begin insert SEC. 13. 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 begin delete site with
information required to be posted by subdivision (c) of Section
84223].” end delete begin insert site]. end insert begin insert ” end insert 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 disclosures required by Sections 84502, 84503, and 84506.5
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 5 percent of the height of the advertisement, and printed
on a solid background with sufficient contrast that is easily readable
by the average begin delete person. end delete begin insert viewer. end insert The text may be adjusted so it does
not appear on separate horizontal lines, with the top contributors
separated by a comma.

(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. 12. end delete

begin insert SEC. 14. end insert   

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

begin delete

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 clear and conspicuous,
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 or would substantively interfere with a
committee’s ability to convey the intended message because of
the nature of the technology used to make the communication. The
Commission may prescribe by regulation minimal disclaimer
requirements if inclusion of the full disclaimer is deemed
impractical.

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

end delete

begin insert

begin insert 84504.3. end insert   

end insert begin insert

(a) An electronic media advertisement, other than
an Internet Web site, shall comply with both of the following:

end insert begin insert

(1) Include the text “Who funded this ad?” in a contrasting
color and a font size that is easily readable to the average viewer.

end insert begin insert

(2) Such text shall be a hyperlink to an Internet Web site
containing the disclosures required by Sections 84502, 84503, and
84506.5 in a contrasting color and in no less than 8 point font.

end insert begin insert

(b) Notwithstanding subdivision (a), the text required by
paragraph (1) of subdivision (a) is not required if including the
language would be impracticable. In such circumstances the
advertisement need only include a hyperlink to an Internet Web
site containing the disclosures required by Sections 84502, 84503,
and 84506.5.

end insert begin insert

(c) Notwithstanding subdivisions (a) and (b), an Internet Web
site shall include the disclosures required by Sections 84502,
84503, and 84506.5 in a contrasting color and in no less than 8
point font.

end insert begin delete

(b)

end delete

begin insert (d) end insert  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 in which
the candidate or ballot measure supported or opposed by the
advertisement was voted upon.

begin delete

(c)

end delete

begin insert (e) end insert  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.

begin delete

(d)

end delete

begin insert (f) end insert  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
begin delete disclaimer required by subdivision (a) on the committee’s home
page, landing page, end delete begin insert disclosures required by Sections 84502, 84503,
and 84506.5 in a contrasting color and in no less than 8 point font
on the committee’s profile, landing page, end insert 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.

begin delete

(e)

end delete

begin insert (g) end insert  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. 13. end delete

begin insert SEC. 15. 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 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. 14. end delete

begin insert SEC. 16. end insert   

Section 84506 of the Government Code is repealed.

begin delete SEC. 15. end delete

begin insert SEC. 17. end insert   

Section 84506.5 of the Government Code is amended
to read:

84506.5.  

begin delete (a) end delete begin delete   end delete An advertisement supporting or opposing a
candidate that is paid for by an independent expenditure must
include begin delete the following statement in 14-point font: This end delete begin insert a statement
that it was not authorized by a candidate or a committee controlled
by a candidate. If the advertisement was authorized or paid for by
a candidate for another office, the expenditure shall instead include
a statement that “This end insert advertisement was not authorized or paid
for by a candidate for this office or a committee controlled by a
candidate for this begin delete office. end delete begin insert office. end insert begin insert ” end insert

begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete

begin delete SEC. 16. end delete

begin insert SEC. 18. end insert   

Section 84507 of the Government Code is repealed.

begin delete SEC. 17. end delete

begin insert SEC. 19. end insert   

Section 84508 of the Government Code is repealed.

begin delete SEC. 18. end delete

begin insert SEC. 20. end insert   

Section 84509 of the Government Code is repealed.

begin delete SEC. 19. end delete

begin insert SEC. 21. 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 begin delete seven business days, or five business days
if the change in top contributors occurs within 30 days of an
election. end delete begin insert five business days. A committee shall be deemed to have
complied with this paragraph if the amended advertisement is
delivered, containing a request that the advertisement immediately
be replaced, to all affected broadcast stations or other location
where the advertisement is placed no later than the fifth business
day. end insert

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

begin delete SEC. 20. end delete

begin insert SEC. 22. 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 delete SEC. 21. end delete

begin insert SEC. 23. end insert   

Section 85704 of the Government Code is amended
to read:

85704.  

(a) A person shall not make any contribution to any
committee or candidate that is earmarked for a contribution to any
other begin delete committee end delete begin insert particular committee, ballot measure, end insert or candidate
unless the contribution is fully disclosed pursuant to Section 84302.

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

(1) The committee or candidate receiving the contribution
solicited the contribution for the purpose of making a contribution
to another begin delete committee or candidate and requested the contributor
to consent to such use. end delete begin insert specifically identified committee, ballot
measure, or candidate, requested the contributor to expressly
consent to such use, and the contributor consents to such use. end insert

(2) The contribution was made subject to a begin delete condition, agreement,
or understanding end delete begin insert condition or agreement end insert with the contributor that
all or a portion of the contribution would be used to make a
contribution to another begin delete committee or candidate, including any
circumstance in which the contributor 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
contributor’s contribution. end delete begin insert specifically identified committee, ballot
measure, or candidate. end insert

(3) After the contribution was made, the contributor and the
committee or candidate receiving the contribution begin delete reaching end delete begin insert reached end insert
a subsequent agreement begin delete or understanding end delete that all or a portion of
the contribution would be used to make a contribution to another

begin delete committee or candidate, including any circumstance in which the
contributor 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 contributor’s contribution. end delete

begin insert specifically identified committee, ballot measure, or candidate. end insert

begin insert

(c) Notwithstanding subdivision (a) and (b), dues, assessments,
fees, and similar payments made to a membership organization in
an amount less than that specified in subdivision (a) of Section
85303 per calendar year from a single source for the purpose of
making contributions or expenditures shall not be considered
earmarked.

end insert begin insert

(d) A violation of this section shall not be based solely on the
timing of contributions made or received.

end insert

begin delete SEC. 22. end delete

begin insert SEC. 24. 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. 23. end delete

begin insert SEC. 25. 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.