Today's Law As Amended


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SB-52 Political Reform Act of 1974: campaign disclosures.(2013-2014)



As Amends the Law Today


SECTION 1.
 This act shall be known as the California Disclose Act.
SEC. 2.
 The Legislature finds and declares all of the following:
(a) Ever-increasing amounts of funds are raised and spent in support of and opposition to state and local ballot measures, especially in the form of advertisements. The outcomes of such elections are disproportionately impacted by campaign expenditures in support of and opposition to those measures.
(b) Ever-increasing amounts of funds are spent on campaigns by persons who do one or more of the following:
(1) Frequently use their wealth to fund local and state ballot measures designed to advance their own economic interests.
(2) Increasingly avoid having their identities disclosed in election-related advertisements by channeling funds through one or more persons before those funds are received by a committee, thereby undermining the purpose and intent of laws requiring disclosure on such advertisements.
(3) Spend extraordinary amounts of money running election-related advertisements while hiding behind dubious and misleading names, including, but not limited to, advertisements by primarily formed committees and general purpose committees.
(4) Increasingly evade disclosure by funding advertisements designed to persuade voters without expressly advocating support or opposition.
(c) The activities described in subdivision (b) cause the public to become increasingly disaffected with the democratic process, discouraging participation in elections and coloring public perceptions of the legitimacy and integrity of state and local government.
(d) The people of California and their government officials have a compelling interest in knowing the true and original source of committee funding and receiving clear information identifying the largest original contributors responsible for political advertisements funded by such committees.
(e) The disclosure of original contributors on advertisements serves the following important governmental and societal purposes:
(1) Providing the people and government officials current and easily accessible information regarding who is funding advertisements that are intended to influence their votes on ballot measures.
(2) Enabling the people and government officials to identify potential bias in advertisements to assist them in making more informed decisions and giving proper weight to different speakers and messages.
(3) Deterring actual corruption and avoiding the appearance of corruption by providing increased transparency of contributions and expenditures.
(4) Improving the people’s confidence in the democratic process and increasing their motivation to actively participate in that process by regular voting and other forms of civic engagement.
(5) Promoting compliance with and detecting violations of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code), while also addressing the problems and advancing the state interests described in that act.

SEC. 3.

 Section 84501 of the Government Code is repealed.

84501.
 For purposes of this article, the following definitions apply:
(a) (1) “Advertisement” means any general or public communication that 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 from an organization, other than a political party, to its members.
(B) An electronic media communication addressed to recipients, such as email messages or text messages, from an organization to persons who have opted in or asked to receive messages from the organization. This subparagraph does not apply to a customer who has opted in to receive communications from a provider of goods or services, unless the customer has provided express approval to receive political messages from that provider of goods or services.
(C) Any communication that was solicited by the recipient, including, but not limited to, acknowledgments for contributions or information that the recipient communicated to the organization, or responses to an electronic message sent by the recipient to the same mobile number or email address.
(D) 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 disclosure required cannot be conveniently printed or displayed.
(E) Wearing apparel.
(F) Sky writing.
(G) Any other type of communication, as determined by regulations of the Commission, for which inclusion of the disclosures required by Sections 84502 to 84509, inclusive, is impracticable or would severely interfere with the committee’s ability to convey the intended message due to the nature of the technology used to make the communication.
(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) A tie between two or more contributors qualifying as top contributors shall be resolved by determining the contributor who made the most recent contribution to the committee, in which case the most recent contributor shall be listed before any other contributor of the same amount.
(3) If a committee primarily formed to support or oppose a state candidate or ballot measure contributes funds to another committee primarily formed to support or oppose the same state candidate or ballot measure and the funds used for the contribution were earmarked to support or oppose that candidate or ballot measure, the committee receiving the earmarked contribution shall disclose the contributors who earmarked their funds as the top contributor or contributors on the advertisement if the definition of top contributor provided for in paragraph (1) is otherwise met. If the committee receiving the earmarked contribution contributes any portion of the contribution to another committee primarily formed to support or oppose the specifically identified ballot measure or candidate, that committee shall disclose the true source of the contribution to the new committee receiving the earmarked funds. The new committee shall disclose the contributor on the new committee’s advertisements if the definition of top contributor provided for in paragraph (1) is otherwise met.
(A) The primarily formed committee making the earmarked contribution shall provide the primarily formed committee receiving the earmarked contribution with the name, address, occupation, and employer, if any, or principal place of business, if self-employed, of the contributor or contributors who earmarked their funds and the amount of the earmarked contribution from each contributor at the time the contribution is made. If the committee making the contribution received earmarked contributions that exceed the amount contributed or received contributions that were not earmarked, the committee making the contribution shall use a reasonable accounting method to determine which top contributors to identify pursuant to this subparagraph, but in no case shall the same contribution be disclosed more than one time to avoid disclosure of additional contributors who earmarked their funds.
(B) The committee receiving the earmarked contribution may rely on the information provided pursuant to subparagraph (A) for purposes of complying with the disclosure required by Section 84503 and shall be considered in compliance with Section 84503 if the information provided pursuant to subparagraph (A) is disclosed as otherwise required.
(C) For purposes of this paragraph, funds are considered “earmarked” if any of the circumstances described in subdivision (b) of Section 85704 apply.
(4) If an advertisement paid for by a committee supports or opposes a candidate, the determination of top contributors pursuant to paragraphs (1) and (2) shall not include any nonprofit organization exempt from federal income taxation pursuant to Section 501(c)(3) of the United States Internal Revenue Code or any person who has prohibited in writing the use of that person’s contributions to support or oppose candidates if the committee does not use such contributions to support or oppose candidates.

SEC. 4.

 Section 84501 is added to the Government Code, to read:

84501.
 For purposes of this article, the following terms have the following meanings:
(a) (1) “Advertisement” means any general or public communication that is either of the following:
(A) Authorized and paid for by a committee for the purpose of supporting or opposing a candidate for elective office or one or more ballot measures.
(B) A ballot measure advocacy communication that satisfies all of the following:
(i) It is disseminated, broadcast, or otherwise communicated within 45 days before an election.
(ii) It concerns a clearly referenced ballot measure that will appear on the ballot at the election.
(iii) A reasonable person would interpret the overall message of the communication as expressing support of or opposition to the ballot measure.
(2) “Advertisement” does not include any of the following:
(A) A communication from an organization, other than a political party, to its members.
(B) A campaign button smaller than 10 inches in diameter; a bumper sticker smaller than 60 square inches; or a small tangible promotional item, including, but not limited to, a pen, pin, or key chain, upon which the disclosures required by this article cannot be conveniently printed or displayed.
(C) Clothing apparel.
(D) Sky writing.
(E) An electronic media communication, if inclusion of the disclosures required by this article is impracticable or would severely interfere with the committee’s ability to convey the intended message because of the nature of the technology used to make the communication.
(F) 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 prior to the date the committee made its first expenditure for the purpose of supporting or opposing a candidate for elective office or for the purpose of qualification, passage, or defeat of a ballot measure, and ending seven days before the time the advertisement is disseminated or broadcast.
(c) “Identifiable contributor” means a person that is the original source of funds for contributions received by a committee that cumulatively total fifty thousand dollars ($50,000) or more, notwithstanding the fact that the contributions were transferred, in whole or in part, through one or more other committees or persons.

SEC. 5.

 Section 84502 of the Government Code is repealed.

84502.
 (a) (1) Any advertisement not described in subdivision (b) of Section 84504.3 that is paid for by a committee pursuant to subdivision (a) of Section 82013, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the words “Ad paid for by” followed by the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101.
(2) Any advertisement not described in subdivision (b) of Section 84504.3 that is paid for by a committee pursuant to subdivision (a) of Section 82013 that is a political party committee or a candidate controlled committee established for an elective office of the controlling candidate shall include the words “Ad paid for by” followed by the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101 if the advertisement is any of the following:
(A) Paid for by an independent expenditure.
(B) An advertisement supporting or opposing a ballot measure.
(C) A radio or television advertisement.
(D) A text message advertisement that is required to include a disclosure pursuant to Section 84504.7.
(b) Any advertisement not described in subdivision (b) of Section 84504.3 that is paid for by a committee pursuant to subdivision (b) or (c) of Section 82013 shall include the words “Ad paid for by” followed by the name that the filer is required to use on campaign statements pursuant to subdivision (o) of Section 84211.
(c) Notwithstanding subdivisions (a) and (b), if an advertisement is a printed letter, internet website, or email message, the text described in subdivisions (a) and (b) may include the words “Paid for by” instead of “Ad paid for by.”
(d) Notwithstanding subdivisions (a) and (b), if an advertisement is a text message, the text described in subdivisions (a) and (b) may include the words “Paid for by” or “With,” instead of “Ad paid for by.”
(e) Notwithstanding subdivision (a), if an advertisement is a video advertisement that is disseminated over the internet, is a print advertisement that is larger than those designed to be individually distributed subject to subdivision (b) of Section 84504.2, is an electronic media advertisement subject to subdivision (b) of Section 84504.3, or is a text message advertisement subject to Section 84504.7, then the text for the name of the committee may be shortened by either of the following:
(1) Displaying only enough of the first part of the committee name to uniquely identify the committee. If the committee is a sponsored committee, then the name displayed must include the portion of the committee name that identifies the sponsor or sponsors, unless all of the sponsors are disclosed on the ad as top contributors as required by Section 84503. For example, if ACME Corporation is not listed as a top contributor, then a committee named “Yes on 99, Californians for a Better Tomorrow, a coalition of X, Y, and Z. Sponsored by ACME Corporation” may be disclosed as only “Yes on 99, Californians for a Better Tomorrow. Sponsored by ACME Corporation.”
(2) If the advertisement is paid for by a committee that has top contributors and is subject to Section 84503, then the committee name may be replaced by displaying the words “Committee ID” followed by the committee’s identification number.

SEC. 6.

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

84502.
 (a) On or before January 1, 2016, the Commission shall promulgate regulations, in furtherance of the purposes of this article, related to identifying and reporting persons who are the original sources of funds transferred through committees or other persons, for the purpose of determining the identifiable contributors required to be disclosed on advertisements regarding ballot measures pursuant to Sections 84503.1, 84503.2, and 84503.3.
(b) The Commission shall promulgate regulations prohibiting a recipient of funds transferred by an identifiable contributor from depositing the funds until any applicable reports required by the regulations promulgated pursuant to subdivision (a) have been received by the recipient.
(c) In any action for a violation of this article brought by the Commission against a recipient of funds transferred by an identifiable contributor, it is a complete defense that information provided by the identifiable contributor was incorrect and the recipient did not know or did not have reason to know it was incorrect.

SEC. 7.

 Section 84503 of the Government Code is amended to read:

84503.
 (a) Any advertisement not described in subdivision (b) of Section 84504.3 that is paid for by a committee pursuant to subdivision (a) of Section 82013, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the words “Ad Committee’s Top Funders” unless only one contributor qualifies as a top contributor, in which case the advertisement shall include the words “Ad Committee’s Top Funder.” These words shall be 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. Except for advertisements described in Sections 84503.1, 84503.2, and 84503.3, any advertisement for or against any ballot measure shall include a disclosure statement identifying any person whose cumulative contributions are fifty thousand dollars ($50,000) or more. 
(b) The disclosure of a top contributor pursuant to this section shall 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) (b)  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. there are more than two donors of fifty thousand dollars ($50,000) or more, the committee is only required to disclose the highest and second highest in that order. In the event that more than two donors meet this disclosure threshold at identical contribution levels, the highest and second highest shall be selected according to chronological sequence. 
(d) This section does not apply to a committee as defined by subdivision (b) or (c) of Section 82013.
(e) Notwithstanding subdivision (a), if an advertisement is a printed letter, internet website, email message, or text message, the text described in subdivision (a) may include the words “Committee Top Funders” or “Committee Top Funder” instead of “Ad Committee’s Top Funders” or “Ad Committee’s Top Funder.”

SEC. 8.

 Section 84503.1 is added to the Government Code, to read:

84503.1.
 (a) An advertisement regarding a ballot measure, disseminated by a political party or candidate-controlled committee, that is a radio advertisement or prerecorded telephonic message shall include a disclosure statement 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 that reads as follows: “Paid for by [name of the committee that paid for the advertisement].”
(b) (1) An advertisement regarding a ballot measure, disseminated by a committee other than a political party or candidate-controlled committee, that is a radio advertisement or prerecorded telephonic message shall include a disclosure statement 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 that reads as follows: “This ad has major funding from [state names in descending order of identifiable contributors who have made the two largest cumulative contributions to the committee that paid for the advertisement]. Paid for by [name of the committee that paid for the advertisement].”
(2) If there is only one identifiable contributor or the advertisement lasts 15 seconds or less, the disclosure statement required by paragraph (1) shall be adjusted to read as follows: “This ad has major funding from [state name of identifiable contributor who made the largest cumulative contributions to the committee that paid for the advertisement]. Paid for by [name of the committee that paid for the advertisement].”
(3) If there are no identifiable contributors to the committee that paid for the advertisement, the advertisement may replace the disclosure statement required by paragraph (1) with the following: “Paid for by [name of the committee that paid for the advertisement].”
(4) If the content of the advertisement names each of the identifiable contributors required to be named pursuant to paragraphs (1) and (2) as top funders of the advertisement, it may replace the disclosure statement required by paragraph (1) with the following: “Paid for by [name of the committee that paid for the advertisement].”

SEC. 9.

 Section 84503.2 is added to the Government Code, to read:

84503.2.
 (a) An advertisement regarding a ballot measure, disseminated by a political party or candidate-controlled committee, that is a television or video advertisement shall include a disclosure area with a solid black background on the entire bottom one-third of the television or video display screen at the beginning or end of the advertisement for a minimum of five seconds in the case of an advertisement that lasts 30 seconds or less or a minimum of 10 seconds in the case of an advertisement that lasts longer than 30 seconds. The disclosure area shall include the following text: “Paid for by [name of the committee that paid for the advertisement].” The text shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be at least 4 percent of the height of the television or video display screen and shall be centered horizontally.
(b) An advertisement regarding a ballot measure, disseminated by a committee other than a political party or candidate-controlled committee, that is a television or video advertisement shall include a disclosure area with a solid black background on the entire bottom one-third of the television or video display screen at the beginning or end of the advertisement for a minimum of five seconds in the case of an advertisement that lasts 30 seconds or less or a minimum of 10 seconds in the case of an advertisement that lasts longer than 30 seconds. The disclosure area shall include all of the following:
(1) The text “Ad Paid for by a Committee whose Top Funders are:”. The text shall be located at the top of the disclosure area and centered horizontally, shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be equivalent to 3 percent of the height of the television or video display screen.
(2) Immediately below the text described in paragraph (1), the names of the identifiable contributors who have made the three largest cumulative contributions to the committee that paid for the advertisement. The identifiable contributors shall each be disclosed on a separate horizontal line, in descending order, beginning with the identifiable contributor who made the largest cumulative contributions on the first line. The name of each of the identifiable contributors shall be centered horizontally in the disclosure area. The text shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be at least 4 percent of the height of the television or video display screen. 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 identifiable contributors to exceed the width of the screen, the type sizes of the names of all the identifiable contributors shall be reduced until the names of the identifiable contributors fit on the width of the screen, but in no case shall the type size be smaller than 2.5 percent of the height of the screen.
(3) The text “Paid for by [name of the committee that paid for the advertisement].” The text shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be equivalent to 2 percent of the height of the television or video display screen. The text shall be left-aligned and located in a position that is vertically at least 2 percent of the height of the television or video display screen away from the bottom left of the television or video display screen.
(4) If there are fewer than three identifiable contributors to the committee that paid for the advertisement, the disclosure statement required by this subdivision shall be adjusted accordingly to disclose only those that qualify as identifiable contributors, if any. If the committee does not have any identifiable contributors, the text required by paragraph (1) shall be adjusted to read “Ad Paid for by” and the name of the committee shall be printed immediately below it, centered horizontally. The text shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be at least 4 percent of the height of the television or video display screen.
(5) In addition to the requirements specified in paragraphs (1) to (4), inclusive, committees subject to Section 84223 shall include the text “Funding Details At [insert Commission Internet Web site address with information required to be posted pursuant to Section 84223].” The text shall be in a contrasting color in Arial Narrow equivalent font, and the type size shall be equivalent to 2.5 percent of the height of the television or video display screen. The text shall be right-aligned and located in a position that is at least 2.5 percent of the height of the television or video display screen away from the bottom right of the television or video display screen.

SEC. 10.

 Section 84503.3 is added to the Government Code, to read:

84503.3.
 (a) An advertisement regarding a ballot measure, disseminated by a political party or candidate-controlled committee, that is a mass mailing or a print advertisement designed to be distributed personally shall include a disclosure area on the outside display surface of the mass mailing or print advertisement that reads as follows: “Paid for by [name of the committee that paid for the advertisement].” The text shall be in an Arial Narrow equivalent font with a type size of at least 10-point in a color or print that contrasts with the background so that it is easily read.
(b) An advertisement regarding a ballot measure, disseminated by a committee other than a political party or candidate-controlled committee, that is a mass mailing or a print advertisement designed to be distributed personally shall include a disclosure area on the largest page of the mass mailing or print advertisement that satisfies all of the following requirements:
(1) The disclosure area shall have a solid white background so as to be easily legible, and shall be in a printed or drawn box on the bottom of the page that is set apart from any other printed matter. All text in the disclosure area shall be black in color. The text in the disclosure area shall be written in the same direction as the text or graphics on the majority of the page that has the disclosure.
(2) The text “Ad Paid for by a Committee whose Top Funders are:” shall be located at the top of the disclosure area and centered horizontally in the disclosure area. The text shall be in an Arial Narrow equivalent font with a type size of at least 12-point for advertisements smaller than 93 square inches and at least 14-point for advertisements that are equal to, or larger than, 93 square inches.
(3) Immediately below the text described in paragraph (2) shall be the names of the identifiable contributors who have made the three largest cumulative contributions to the committee that paid for the advertisement. The identifiable contributors shall each be disclosed on a separate horizontal line, in descending order, beginning with the identifiable contributor who made the largest cumulative contributions on the first line. The name of each of the identifiable contributors shall be centered horizontally in the disclosure area. The text shall identify each identifiable contributor in an Arial Narrow equivalent font with a type size of at least 10-point for advertisements smaller than 93 square inches and at least 12-point for advertisements that are equal to, or larger than, 93 square inches.
(A) If the advertisement is four inches tall or less, it need only show the names of the identifiable contributors who have made the two largest cumulative contributions.
(B) If the advertisement is three inches tall or less, it need only show the name of the identifiable contributor who made the largest cumulative contributions, and the text required by paragraph (2) shall read “Ad Paid for by a Committee whose Top Funder is.”
(4) The text “Paid for by [name of the committee that paid for the advertisement]” shall be located at the bottom of the disclosure area and shall be in an Arial Narrow equivalent font with at least 8-point type size for pages smaller than 93 square inches and at least 10-point type size for pages that are equal to, or larger than, 93 square inches.
(5) If there are fewer than three identifiable contributors to the committee that paid for the advertisement, the disclosure shall be adjusted accordingly to disclose the qualifying identifiable contributors, if any. If the committee does not have any identifiable contributors, the disclosures described in paragraphs (2) and (3) are not required.
(6) In addition to the requirements specified in paragraphs (1) to (5), inclusive, committees subject to Section 84223 shall include, immediately below the text described in paragraph (3), the text “Funding Details At [insert Commission Internet Web site address with information required to be posted pursuant to Section 84223].” The text shall be in an Arial Narrow equivalent font with at least 10-point type size for advertisements smaller than 93 square inches and at least 12-point type size for advertisements that are equal to, or larger than, 93 square inches. This text shall not be required if the advertisement is five inches tall or less.

SEC. 11.

 Section 84503.4 is added to the Government Code, to read:

84503.4.
 (a) The disclosure of the name of an identifiable contributor required by this article need not include such legal terms as “incorporated,” “committee,” “political action committee,” or “corporation,” or their abbreviations, unless the term is part of the contributor’s name in common usage or parlance.
(b) If this article requires the disclosure of the name of an identifiable contributor that is a sponsored committee that has a single sponsor, only the name of the committee’s sponsoring organization shall be disclosed.
(c) If the identifiable contributor is the parent of a subsidiary corporation whose economic interest is more directly impacted than the parent by a measure that is the subject of the advertisement, then the subsidiary’s name shall be disclosed. Disclosure of the parent’s name is optional, but shall not replace the required disclosure of other identifiable contributors otherwise required by this article.
(d) All disclosure text required by this article shall be displayed in the capitalization shown in this article, such as “Ad Paid for by a Committee whose Top Funders are:”. Names of identifiable contributors and committees shall be displayed in title capitalization (e.g. “John Smith”), except for names that are acronyms (e.g. “ACME Hunting Supplies”).

SEC. 12.

 Section 84503.5 is added to the Government Code, to read:

84503.5.
 If the order of the identifiable contributors required to be displayed in an advertisement pursuant to this article changes, the disclosure in the advertisement shall be updated as follows:
(a) A television, radio, or other electronic media advertisement shall be updated to reflect the new ordering of identifiable contributors within seven business days, or five business days if the change in the order of identifiable contributors occurs within 30 days of an election.
(b) A print media advertisement, including nonelectronic billboards, shall be updated to reflect the new ordering of identifiable contributors prior to placing a new or modified order for additional printing of the advertisement.

SEC. 13.

 Section 84504 of the Government Code is amended to read:

84504.
 (a) An advertisement paid for by a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, 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. Any committee that supports or opposes a ballot measure shall print or broadcast its name as provided in this article as part of any advertisement or other paid public statement. 
(b) Notwithstanding the definition of “top contributors” in paragraph (1) of subdivision (c) of Section 84501, radio and prerecorded telephonic advertisements shall disclose only the top two contributors of fifty thousand dollars ($50,000) or 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 fifty thousand dollars ($50,000) or more shall be disclosed. If candidates or their controlled committees, as a group or individually, meet the contribution thresholds for a person, they shall be identified by the controlling candidate’s name. 

SEC. 14.

 Section 84505 of the Government Code is amended to read:

84505.
 (a)  In addition to the requirements of Sections 84502,  84503, 84503.1, 84503.2,  and 84506.5, 84503.3,  the committee placing the  paying for an  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. major funding source. 
(b) Written disclosures required by Sections 84503 and 84506.5 shall not appear in all capital letters, except that capital letters shall be permitted for the beginning of a sentence, the beginning of a proper name or location, part of the contributor’s trademark name or part of its name in common usage or parlance, or as otherwise required by conventions of the English language.

SEC. 15.

 Section 84506 of the Government Code is amended to read:

84506.
 (a) An advertisement supporting or opposing a candidate or a ballot measure and that is paid for by an independent expenditure shall include, except as provided in Sections 84503.1, 84503.2, and 84503.3, a disclosure statement that identifies both of the following:
(1) The name of the committee making the independent expenditure.
(2) The names of the persons from whom the committee making the independent expenditure has received its two highest cumulative contributions of fifty thousand dollars ($50,000) or more during the 12-month period prior to the expenditure. If the committee can show, on the basis that contributions are spent in the order they are received, that contributions received from the two highest contributors have been used for expenditures unrelated to the candidate or ballot measure featured in the communication, the committee shall disclose the contributors making the next largest cumulative contributions of fifty thousand dollars ($50,000) or more.
(b) If an acronym is used to identify any committee names required by this section, the names of any sponsoring organization of the committee shall be printed on print advertisements or spoken in broadcast advertisements.

SEC. 16.

 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) (a)  Makes   A committee that makes  an expenditure of five thousand dollars ($5,000) or more to an individual for the individual’s  his or her  appearance in an advertisement that supports to support  or opposes oppose  the qualification, passage, passage  or defeat of a ballot measure. measure shall file a report within 10 days of the expenditure. The report shall identify the measure, the date of the expenditure, the name of the recipient, and the amount expended. 
(2) Makes an expenditure of any amount to an individual for the individual’s 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) (b)  An advertisement paid for by a committee described in paragraph (1) of subdivision (a) shall include a disclosure statement stating  The advertisement shall include the statement  “(spokesperson’s name) is being paid by this campaign or its donors” in highly visible roman  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 telephone  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 84503.2  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. 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.
(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.

SEC. 16.5.

 Section 84511 of the Government Code is amended to read:

84511.

(a) A committee that makes an expenditure of five thousand dollars ($5,000) or more to an individual for his or her appearance in an advertisement to support or oppose the qualification, passage or defeat of a ballot measure shall file a report within 10 days of the expenditure. The report shall identify the measure, the date of the expenditure, the name of the recipient, and the amount expended.

(b)The advertisement shall include the statement “(spokesperson’s name) is being paid by this campaign or its donors” in highly visible roman 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 telephone message.
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 the individual’s  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 the individual’s  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 roman  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 84503.2  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 roman  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. 
(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.
SEC. 17.
 Section 16.5 of this bill incorporates amendments to Section 84511 of the Government Code proposed by both this bill and Assembly Bill 510. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2015, (2) each bill amends Section 84511 of the Government Code, and (3) this bill is enacted after Assembly Bill 510, in which case Section 16 of this bill shall not become operative.
SEC. 18.
 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.
SEC. 19.
 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.