BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1148
                                                                  Page  1

          Date of Hearing:   January 19, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 1148 (Brownley) - As Amended:  January 18, 2012 

          Policy Committee:                              ElectionsVote:5-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill amends the Political Reform Act (PRA) by making 
          several changes to the disclosures required in campaign 
          advertisements and slate mailers. Specifically, this bill:

          1)Requires, in general, that advertisements supporting or 
            opposing a candidate or ballot measure via radio, television, 
            or print or mass mailing, identify the top three funders of 
            the advertisement, based on "cumulative contributions," as 
            defined, by means detailed in the bill for each respective 
            medium.

          2)Provides that the disclosures in (1) are not required if an 
            advertisement is authorized by a candidate, or agent of the 
            candidate, and includes, for radio and television 
            advertisements, a statement in which the candidate has 
            approved the message. This exemption would not apply in the 
            case of independent expenditures, except for those made by 
            candidate-controlled ballot measure committees.

          3)Requires a committee paying for an advertisement requiring 
            disclosure per (1) to disclose its top funders on the 
            committee's website in a manner specified. 

          4)Requires a slate mailer to designate an asterisk next to a 
            candidate or a ballot measure for which payment has been made 
            for inclusion on the slate mailer.

          5)Repeals existing, conflicting disclosure requirements for 
            campaign advertisements.
           
          FISCAL EFFECT  








                                                                  AB 1148
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          The Fair Political Practices Commission (FPPC) will incur annual 
          GF costs of around $200,000, for the equivalent of two 
          positions, associated with the initial writing new regulations 
          and re-writing campaign materials and increased ongoing costs to 
          provide advice and for investigation and enforcement. The 
          commission could also incur significant costs for litigation 
          related to the constitutionality of some of the bills provision. 

           
          COMMENTS  

           1)Purpose  . The author notes the use of unlimited contributions 
            to candidates through independent expenditure committees and 
            to ballot measure committees, many of which are purposely 
            established to hide who is funding campaign messages. A recent 
            Field Poll found that Californians believe reforms can be made 
            to weaken the influence special interests have asserted over 
            the initiative system. This poll found that 84% of voters 
            believe public disclosure requirements of initiative sponsors 
            must more clearly identify who are its major funders. 

            The author argues, "At a time when public confidence in its 
            elected officials is unequivocally low, strengthening 
            disclosure requirements on political advertisements is 
            necessary to help Californians be better informed and feel 
            more represented by their government."

            This bill is sponsored by the California Clean Money Campaign, 
            which argues that disclosure of political advertising is 
            needed now more than ever, particularly in light of the 
            Supreme Court's Citizen's United decision, which the campaign 
            claims "unleashed the floodgates of anonymous spending on 
            campaigns by ruling there could be no limits on outside 
            spending by corporations, unions, or individuals. At the same 
            time, the Court in Citizens United specifically noted the 
            problems that result when groups run ads 'while hiding behind 
            dubious and misleading names'."

           2)Constitutional Issues  . The analysis of this bill by the 
            Assembly Elections and Redistricting Committee includes a 
            thorough discussion of this measure's potential to violate 
            constitutional free speech guarantees, concluding, in light of 
            case law, that "this bill could be susceptible to challenge on 
            the grounds that it violates the First Amendment's rights to 








                                                                  AB 1148
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            freedom of speech and freedom of expression by compelling a 
            person to include speech in an advertisement that he or she 
            may otherwise choose to omit."

           3)Opposition  . The California Broadcasters Association argues 
            that the bill will add time to disclosure requirements, thus 
            discouraging consultants from using the medium.

           4)Political Reform Act  : In 1974, California voters passed 
            Proposition 9, commonly known as the PRA, which created the 
            FPPC and codified significant restrictions and prohibitions on 
            candidates, officeholders and lobbyists. Amendments to the PRA 
            that are not submitted to the voters, such as those contained 
            in this bill, must further the purposes of the initiative and 
            require a two-thirds vote of both houses of the Legislature.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081