BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1148
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          Date of Hearing:   January 9, 2012

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                  AB 1148 (Brownley) - As Amended:  January 4, 2012
          
                              AS PROPOSED TO BE AMENDED

          SUBJECT  :   Political Reform Act of 1974: advertisements: 
          disclosure.

           SUMMARY  :   Makes significant changes to required disclosures on 
          campaign advertisements and slate mailers.  Specifically,  this 
          bill :  

          1)Defines the following terms, for the purposes of this bill:

             a)   "Advertisement" to mean any general or public 
               advertisement which is authorized and paid for by a person 
               or committee for the purpose of supporting or opposing a 
               candidate for elective office or a ballot measure or 
               measures.  Provides that the term "advertisement" does not 
               include a communication from an organization other than a 
               political party to its members, a campaign button smaller 
               than 10 inches in diameter, a bumper sticker smaller than 
               60 square inches, or any other advertisement as determined 
               by the Fair Political Practices Commission (FPPC).

             b)   "Committee disclosure Internet Web site" to mean the 
               Internet Web site for a committee identifying the top 
               identifiable contributors to that committee.

             c)   "Cumulative contributions" to mean the cumulative amount 
               of contributions received by a committee during a period of 
               time determined by the FPPC by regulation, but in no event 
               less than the period commencing 18 months prior to the date 
               the committee made its first expenditure to qualify, 
               support, or oppose a candidate for elective office or a 
               ballot measure or measures and ending seven days after the 
               advertisement is sent to the printer or broadcast station 
               or uploaded to the Internet.  

             d)   "Identifiable contributor" to mean a person or committee 
               that has made cumulative contributions of at least $10,000 
               to a committee.








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          2)Requires the FPPC to adopt regulations that establish the time 
            used to calculate cumulative contributions for the purposes of 
            this bill.  Provides that a regulation adopted pursuant to 
            this provision shall be adopted as an emergency regulation.

          3)Requires a radio advertisement that supports or opposes a 
            candidate or ballot measure or solicits contributions in 
            support of that purpose, to include the following:

             a)   If the advertisement is authorized by a candidate or an 
               agent of the candidate, an audio statement in which the 
               candidate identifies himself or herself and states that the 
               candidate has approved the message; or, 

             b)   If the advertisement is not authorized by a candidate or 
               agent of a candidate, a disclosure at the end of the ad 
               read in a clearly spoken manner in a pitch and tone 
               substantially similar to the rest of the advertisement that 
               reads as follows:

             "Top three funders are Ýnames in descending order of 
               identifiable contributors who made the three largest 
               cumulative contributions to the committee that paid for the 
               advertisement].  Full funding details at ÝInternet Web site 
               address of the committee disclosure Internet Web site]."

          4)Requires a television or video advertisement that supports or 
            opposes a candidate or ballot measure or solicits 
            contributions in support of that purpose, to include the 
            following:

             a)   If the advertisement is authorized by a candidate or an 
               agent of the candidate, a statement in which the candidate 
               identifies himself or herself and states that the candidate 
               has approved the message; or, 

             b)   If the advertisement is not authorized by a candidate or 
               agent of a candidate, a full-screen disclosure without 
               audio on black background for a minimum of three seconds 
               that includes all of the following:

               i)     The text "Top Funders for This Ad" located on the 
                 top of the screen and centered horizontally.  Requires 
                 the text to be white in color and the font size to be at 








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                 least 5 percent of the height of the screen.

               ii)    Immediately below the text detailed above, the 
                 logos, if any, as they appear on the Internet Web site 
                 homepage of the identifiable contributor, for the 
                 identifiable contributors who have made the three largest 
                 cumulative contributions to the committee that paid for 
                 the advertisement.  Requires each logo to occupy at least 
                 15 percent of the width or height of the screen, and to 
                 be displayed from left to right in descending order 
                 beginning with the largest identifiable contributor.

               iii)   Immediately below the logos, if any, the names of 
                 the identifiable contributors who made the three largest 
                 cumulative contributions to the committee that paid for 
                 the advertisement.  Requires each contributor to be 
                 disclosed on a separate vertical line, in descending 
                 order, beginning with the identifiable contributor who 
                 made the largest cumulative contribution on the first 
                 line.  Requires the names of the identifiable 
                 contributors to be centered horizontally, the text to be 
                 white in color, and the font size to be at least 5 
                 percent of the height of the screen.

               iv)    The text "Full Funding Details At ÝInternet Web site 
                 address of the committee disclosure Internet Web site]."  
                 Requires the text to be white in color, the font size to 
                 be equivalent to 4 percent of the height of the screen, 
                 and to be located in a position that is at vertically 4 
                 percent above the bottom of the screen.

          5)Requires a mass mailing or print advertisement, other than a 
            slate mailer or an advertisement that is authorized by a 
            candidate or an agent of a candidate, that supports or opposes 
            a candidate or ballot measure or solicits contributions in 
            support of that purpose, and that is paid for by a committee 
            or by any person spending over $1,000 cumulatively on mass 
            mailing or print advertising during an election, to include a 
            disclosure area on the largest page of the mass mailing or 
            print advertisement that meets all of the following criteria:

             a)   Requires the disclosure area to be set apart from the 
               rest of the page on which it is located by a line framing 
               the disclosure area in the shape of a square or rectangle 
               and in a color that is darker than the background color of 








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               the remainder of the disclosure area.  Requires the 
               disclosure area within the border line to have a solid 
               background color that establishes a contrast to the color 
               of the disclosure text that is equivalent to or greater 
               than the text and background color contrast in other areas 
               of the mass mailing or print advertisement.

             b)   The text "Top Funders for This Ad" located at the top of 
               the disclosure area and centered horizontally in the 
               disclosure area.  Requires the text to be in a font size of 
               at least 14-point for pages smaller than 8.5 inches by 11 
               inches and at least 16-point for pages that are equal to or 
               larger than 8.5 inches by 11 inches. 

             c)   Immediately below the text detailed above, the logos, if 
               any, as they appear on the Internet Web site homepage of 
               the identifiable contributor, for the identifiable 
               contributors who have made the three largest cumulative 
               contributions to the committee that paid for the 
               advertisement.  Requires each logo to occupy at least 8 
               percent of the width or height of the page on which the 
               disclosure area is located, and to be displayed from left 
               to right in descending order beginning with the largest 
               identifiable contributor.

             d)   Immediately below the logos, if any, the names of the 
               identifiable contributors who made the three largest 
               cumulative contributions to the committee that paid for the 
               advertisement.  Requires each contributor to be disclosed 
               on a separate vertical line, in descending order, beginning 
               with the identifiable contributor who made the largest 
               cumulative contribution on the first line.  Requires the 
               names of the identifiable contributors to be centered 
               horizontally, and requires the text to be in a font size of 
               at least 10-point for pages smaller than 8.5 inches by 11 
               inches and at least 12-point for pages that are equal to or 
               larger than 8.5 inches by 11 inches.

             e)   The text "Full Funding Details At ÝInternet Web site 
               address of the committee disclosure Internet Web site]."  
               Requires the text to be located at the bottom of the 
               disclosure area, and to be in a font size of at least 
               10-point for pages smaller than 8.5 inches by 11 inches and 
               at least 12-point for pages that are equal to or larger 
               than 8.5 inches by 11 inches.








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          6)Requires a committee that pays for an advertisement for which 
            a disclaimer would have to be included under this bill to 
            establish and maintain a committee disclosure Internet Web 
            site.  Provides that if the committee has an Internet Web site 
            home page, that Internet Web site may also serve as the 
            committee disclosure site.  Requires the committee disclosure 
            Internet Web site and any other Web sites maintained by the 
            committee to include a disclosure statement area that complies 
            with all of the following:

             a)   The disclosure statement area is at least 250 pixels 
               wide, with a white background and a border that is dark in 
               color.

             b)   A title that reads "Top Funders of This Committee" in 
               black text of at least 10-point font size.

             c)   Immediately below the text identified above, the names 
               of the identifiable contributors who made the five largest 
               cumulative contributions to the committee that paid for the 
               advertisement.  Requires each contributor to be disclosed 
               on a separate vertical line, in descending order, beginning 
               with the identifiable contributor who made the largest 
               cumulative contribution on the first line.  Requires the 
               text to be black in color, and the font size to be at least 
               10-point.

             d)   Immediately below the text detailed above, the logos, if 
               any, as they appear on the Internet Web site homepage of 
               the identifiable contributor, for the identifiable 
               contributors who have made the five largest cumulative 
               contributions to the committee.  Requires each logo to 
               occupy at least 75 horizontal or vertical pixels, and to be 
               displayed from left to right in descending order beginning 
               with the largest identifiable contributor.

             e)   A link to the Internet Web site maintained by the 
               Secretary of State that contains campaign finance 
               disclosures made by the committee pursuant to existing law. 
                Requires the link to be labeled "Full Funding info at the 
               Secretary of State's Internet Web site."  Requires the link 
               to be a standard hyperlink that is displayed as blue 
               underline text in Arial equivalent font in at least 9-point 
               size.








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          7)Requires, if an entity that is disclosed as an identifiable 
            contributor pursuant to this bill is an individual, that the 
            disclosure of that individual also include the occupation and 
            employer of the contributor in addition to the contributor's 
            name if the committee receiving the contribution is supporting 
            or opposing a candidate.

          8)Requires, if an entity that is disclosed as an identifiable 
            contributor pursuant to this bill is an individual, that the 
            disclosure of that individual also include the occupation and 
            employer of the contributor in addition to the contributor's 
            name if the committee receiving the contribution is supporting 
            or opposing a ballot measure and the passage or defeat of the 
            ballot measure directly benefits or harms the employer of the 
            identifiable contributor.  Provides that if an employer of an 
            identifiable contributor is also an identifiable contributor, 
            that the contributions of the employee shall be deemed to be 
            contributions by the employer for the purposes of determining 
            the total cumulative contributions made by the employer in 
            order to determine which identifiable contributors are 
            disclosed.

          9)Provides that if a committee does not have any identifiable 
            contributors, as defined by the bill, the name of that 
            committee shall be included in the advertisement in the place 
            of the identifiable contributors if the committee has received 
            cumulative contributions of at least $10,000.

          10)Requires a slate mailer to include an asterisk (*) next to 
            each candidate and ballot measure for which the slate mailer 
            organization or committee primarily formed to support or 
            oppose one or more ballot measures has received payment to 
            include the candidate or ballot measure in the slate.

          11)Repeals a requirement that an advertisement for or against a 
            ballot measure include a disclosure statement identifying the 
            two highest cumulative contributors of $50,000 or more to the 
            committee funding the advertisement.  Repeals a requirement 
            that a broadcast or mass mailing advertisement supporting or 
            opposing a candidate or ballot measure that is paid for by an 
            independent expenditure (IE) must include a disclosure 
            statement identifying the name of the committee making the 
            expenditure and the names of the persons from whom the 
            committee making the IE received its two highest cumulative 








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            contributions of $50,000 or more during the 12-month period 
            prior to the expenditure.  Repeals a requirement that an 
            advertisement supporting or opposing a candidate that is paid 
            for by an IE must include a statement that it was not 
            authorized by a candidate or a committee controlled by a 
            candidate.

           EXISTING LAW  :

          1)Requires an advertisement for or against any ballot measure to 
            include a disclosure statement identifying any person whose 
            cumulative contributions are $50,000 or more.  Provides that 
            if there are more than two donors of $50,000 or more, the 
            disclosure only needs to include the highest and second 
            highest donors in that order.

          2)Requires a committee that supports or opposes one or more 
            ballot measures to name itself using a name or phrase that 
            identifies the economic or other special interest of its major 
            donors of $50,000 or more.  Provides that if the major donors 
            of $50,000 or more share a common employer, the identity of 
            the employer must also be disclosed.

          3)Requires a broadcast or mass mailing advertisement supporting 
            or opposing a candidate or ballot measure that is paid for by 
            an IE to include a disclosure statement identifying the name 
            of the committee making the expenditure and the names of the 
            persons from whom the committee making the IE received its two 
            highest cumulative contributions of $50,000 or more during the 
            12-month period prior to the expenditure.

          4)Provides that when a disclosure of the top two donors is 
            required on an advertisement pursuant to either of the above 
            provisions, only the largest donor needs to be disclosed on an 
            advertisement that is an electronic broadcast of 15 seconds or 
            less or a print advertisement of 20 square inches or less.

           FISCAL EFFECT  :   Unknown.  State-mandated local program; 
          contains a crimes and infractions disclaimer.

           COMMENTS  :  

           1)Author's Amendments  :  The author has proposed a number of 
            amendments to address drafting errors in the current version 
            of the bill and to make other changes.  This analysis reflects 








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            those proposed author's amendments.  The proposed author's 
            amendments are as follows:

             a)   The current version of the bill proposes to repeal 
               Sections 84504, 84505, 84509, 84510, and 84511 of the 
               Government Code.  This is a drafting error, and it was not 
               the author's intent to repeal these sections of code.  The 
               author's amendments reinstate these code sections.  
               Additionally, it is the author's intent that the provisions 
               of subdivision (c) of Section 84504 apply only to 
               advertisements that are not subject to other disclaimer 
               requirements under this bill.  The author's amendments make 
               that change.

             b)   The current version of the bill requires a "Top Funder" 
               disclosure to be included on certain radio, television, 
               video, mass mailing, and print advertisements.  Similarly, 
               the bill requires certain committees that must include "Top 
               Funder" disclosures on advertisements to have a "committee 
               disclosure Internet Web site."  It is the author's intent 
               that these requirements only apply to advertisements that 
               are not authorized by candidates, and to committees that 
               are not controlled by candidates.  Additionally, it is the 
               author's intent that the "Top Funder" disclosure 
               requirement apply only to mass mailing and print 
               advertisements if the committee that is paying for the ad 
               has spent over $1,000 cumulatively on mass mailings or 
               print advertising during the election.  The author's 
               amendments make those changes.

             c)   Delete the requirement that a candidate state that his 
               or her contributions helped pay for a broadcast 
               advertisement if the candidate would be considered an 
               "identifiable contributor" under this bill.

             d)   Provide that if a committee does not have any 
               identifiable contributors, as defined by the bill, the name 
               of that committee shall be included in the advertisement in 
               the place of the identifiable contributors if the committee 
               has received cumulative contributions of at least $10,000.

             e)   Make the following technical changes:

               i)     On page 18, line 19, strike out "on the page" and 
                 insert "in the disclosure area";








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               ii)    On page 19, line 18, strike out "committee 
                 disclosure Internet", strike out line 19, on line 20, 
                 strike out "Web site" and insert: "home page of the 
                 committee disclosure Internet Web site and any other Web 
                 sites maintained by the committee shall include a 
                 disclosure statement area".  
                
           2)Purpose of the Bill  :  According to the author:

               Campaign spending has reached unprecedented levels in 
               recent years.  During the November 2010 election in 
               California, nearly $200 million was spent on ballot 
               measures alone.  Although there are limits on the amount of 
               direct contributions candidates can receive, funders can 
               make unlimited contributions to candidates through 
               independent expenditure committees and to ballot measure 
               committees that have significantly shaped the way 
               California is governed.  However, many of these committees 
               are purposely established to hide who exactly is funding 
               the campaign messages that voters see and hear.  For 
               example, Field Poll recently conducted a survey that found 
               that while Californians are still supportive of statewide 
               ballot proposition elections, they believe reforms can be 
               made to weaken the influence special interests have 
               asserted over direct democracy intended to empower the 
               average citizen.  It found that 84% of voters believe that 
               public disclosure requirements of initiative sponsors must 
               more clearly identify who are its major funders.   

               While it is essential in a democracy for individuals and 
               organizations to be able to communicate effectively and 
               efficiently with voters, it is equally important that 
               voters are not intentionally deceived and elections are not 
               decided upon misinformation.  AB 1148 will help cast light 
               on spending in elections by disclosing major funding 
               sources directly on advertisements.  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.

           3)Constitutional Issues  :  This measure could be interpreted as a 
            violation of the United States and California Constitutions' 
            guarantees to free speech.  While the right to freedom of 








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            speech is not absolute, when a law burdens core political 
            speech, the restrictions on speech generally must be "narrowly 
            tailored to serve an overriding state interest,"  McIntyre v. 
            Ohio Elections Commission  (1995), 514 US 334. 

          In  Talley v. California  (1960), 362 US 60, the United States 
            Supreme Court struck down a Los Angeles City ordinance that 
            required any handbill that was distributed in the city to 
            contain the name and address of the person who printed, wrote, 
            compiled, or manufactured the handbill.  The Court found the 
            ordinance to be void on its face, because it believed that the 
            ordinance would restrict freedom of expression, in violation 
            of the First Amendment to the United States Constitution.  In 
            its opinion, the Court wrote that there could be "no doubt" 
                                                                      that the Los Angeles ordinance requiring disclosure on a 
            handbill "would tend to restrict the freedom to distribute 
            information and thereby freedom of expression."  The court 
            continued to note that "Ýa]nonymous pamphlets, leaflets, 
            brochures and even books have played an important role in the 
            progress of mankind.  Persecuted groups and sects from time to 
            time throughout history have been able to criticize oppressive 
            practices and laws either anonymously or not at all.  The 
            obnoxious press licensing law of England, which was also 
            enforced on the Colonies was due in part to the knowledge that 
            exposure of the names of printers, writers, and distributors 
            would lessen the circulation of literature critical of the 
            government. . . . Even the Federalist Papers, written in favor 
            of the adoption of our Constitution, were published under 
            fictitious names.  It is plain that anonymity has sometimes 
            been assumed for the most constructive purposes."

          Building on its holding in  Talley  , the Court more recently 
            considered, in  McIntyre  , an Ohio law that prohibited the 
            distribution of campaign literature that did not contain the 
            name and address of the person or campaign official issuing 
            the literature.  The United States Supreme Court, in reviewing 
            the case, found that the Ohio law unconstitutionally 
            restricted the freedom of speech in violation of the First 
            Amendment to the United States Constitution.  In attempting to 
            justify the Ohio law in light of the Court's decision in 
             Talley  , the Ohio Elections Commission argued that the two laws 
            were distinguishable because the Ohio law applied only to 
            documents designed to influence voters in an election, whereas 
            the law in question in  Talley  applied to all handbills.  While 
            the Court recognized that the two laws were different in this 








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            respect, it nonetheless found that "the category of speech 
            regulated by the Ohio statute occupies the core of the 
            protection offered by the First Amendment," and concluded that 
            "the speech in which Mrs. McIntyre engaged - handing out 
            leaflets in the advocacy of a politically controversial 
            viewpoint - is the essence of First Amendment expression."

          Nonetheless, the State of Ohio argued that even under the 
            strictest standard of review, the statute should have been 
            upheld in recognition of two important state 
            interests-preventing fraudulent and libelous statements, and 
            providing the electorate with relevant information.  The Court 
            found that neither interest was sufficient to justify the 
            restrictions that the Ohio law imposed on the freedom of 
            expression.

          With respect to the interest in preventing fraudulent and 
            libelous statements, the court noted that Ohio already had 
            prohibitions against making or disseminating false statements 
            during political campaigns, and as such, "Ohio's prohibition 
            of anonymous leaflets plainly is not its principal weapon 
            against fraud."  The second state interest offered by Ohio was 
            the interest of "providing the electorate with relevant 
            information" - an interest that is similar to the author's 
            stated reason for seeking to require disclosure on 
            advertisements as required by this bill.  Here too, however, 
            the  McIntyre  court found that such an interest was not 
            sufficient to justify the restrictions that the Ohio statute 
            placed on freedom of speech and expression, stating that 
            "Ýi]nsofar as the interest in informing the electorate means 
            nothing more than the provision of additional information that 
            may either buttress or undermine the argument in a document, 
            we think the identity of the speaker is no different from 
            other components of the document's content that the author is 
            free to include or exclude. . . . The simple interest in 
            providing voters with additional relevant information does not 
            justify a state requirement that a writer make statements or 
            disclosures she would otherwise omit."

          Finally, the  McIntyre  court made an important distinction 
            between a requirement that a person file a report with a 
            government agency to disclose money expended for a campaign 
            advertisement and a requirement that a person must disclose 
            his or her identity on the advertisement itself, noting that 
            while requiring a report to be filed with a government agency 








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            "undeniably impedes protected First Amendment activity, the 
            intrusion is a far cry from compelled self-identification on 
            all election-related writings."  The court continued, "Ýa] 
            written election-related document-particularly a leaflet-is 
            often a personally crafted statement of a political viewpoint. 
            . . . As such, identification of the author against her will 
            is particularly intrusive; it reveals unmistakably the content 
            of her thoughts on a controversial issue. Disclosure of an 
            expenditure and its use, without more, reveals far less 
            information. It may be information that a person prefers to 
            keep secret, and undoubtedly it often gives away something 
            about the spender's political views. Nonetheless, even though 
            money may 'talk,' its speech is less specific, less personal, 
            and less provocative than a handbill - and as a result, when 
            money supports an unpopular viewpoint it is less likely to 
            precipitate retaliation."

          Subsequent to the  Tally  and  McIntyre  rulings, the Ninth Circuit 
            Court of Appeals has rejected arguments that the Supreme 
            Court's holdings in those two cases apply only to materials 
            created and distributed by individuals who are acting alone.  
            In  ACLU v. Heller  (2004), No. 01-15462, the Ninth Circuit 
            Court of Appeals struck down a Nevada law that required any 
            published material concerning a campaign to identify the 
            person paying for the publication.  In an effort to save the 
            law after the Supreme Court's decision in  McIntyre  , Nevada 
            amended its law to include an exception for campaign materials 
            that were paid for by "a natural person who acts independently 
            and not in cooperation with or pursuant to any direction from 
            a business or social organization, nongovernmental legal 
            entity, or governmental entity."  The Court rejected the 
            state's argument that this amendment was sufficient to save 
            the statute in light of  McIntyre  .  In its decision, the Court 
            wrote, "Ýt]he Court in  McIntyre  did stress the particular 
            harshness of Ohio's punishment of McIntyre as the sole 
            advocate for her cause.  But nothing in the decision indicates 
            that if she had been allied with other individuals, or with a 
            'business or social organization,' the result would have been 
            different.  The anonymity protected by  McIntyre  is not that of 
            a single cloak."  The Court continued to note that all of the 
            concerns that applied to an advertisement distributed or paid 
            for by an individual also applied to an advertisement that was 
            distributed or paid for by an organization.  Citing  McIntyre  , 
            the court wrote, "Ýs]imilarly, just as a lone 'advocate may 
            believe her ideas will be more persuasive if her readers are 








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            unaware of her identity,' because readers may otherwise 
            'prejudge her message simply because they do not like its 
            proponent,' so, too, groups or individuals working in 
            cooperation with groups may be concerned about readers 
            prejudging the substance of a message by associating their 
            names with the message.  In fact, groups are more likely to be 
            associated with a certain viewpoint than are individuals 
            (e.g., Greenpeace, ACLU, the National Rifle Association).  So 
            a particular group's concern that its message may be prejudged 
            based on its association with the group could be even more 
            well-founded than an individual's similar concern.  Anonymity 
            may allow speakers to communicate their message when 
            preconceived prejudices concerning the message-bearer, if 
            identified, would alter the reader's receptiveness to the 
            substance of the message.  Like other choice-of-word and 
            format decisions, the presence or absence of information 
            identifying the speaker is no less a content choice for a 
            group or an individual cooperating with a group than it is for 
            an individual speaking alone." (Internal citations omitted)

          In light of the  Talley  ,  McIntyre  , and  ACLU  cases, this bill 
            could be susceptible to challenge on the grounds that it 
            violates the First Amendment's rights to 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.  It is also possible, however, that existing state law 
            that requires certain disclosure statements to be included in 
            political advertisements could be equally susceptible to 
            challenge.  
           
           4)Legislative Authority & Emergency Regulations  :  One provision 
            of this bill requires the FPPC to adopt regulations that 
            establish the time used to calculate cumulative contributions 
            for the purposes of this bill, and requires those regulations 
            to be adopted as emergency regulations.  The committee may 
            wish to consider whether it is appropriate to remove the 
            discretion of setting the standard for determining the 
            timeline for calculating cumulative contributions from the 
            Legislature, and to give that authority to the FPPC.  If this 
            bill becomes law, and the Legislature subsequently decides 
            that the timeline for calculating cumulative contributions 
            established by this bill was insufficient, nothing in this 
            bill or in existing law would prevent the Legislature from 
            revisiting that policy decision.









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          Furthermore, the rationale for requiring the FPPC to adopt these 
            regulations as emergency regulations is unclear.  In fact, 
            allowing the FPPC to adopt these regulations as emergency 
            regulations could create problems if the FPPC amended 
            regulations or adopted new regulations in the middle of a 
            campaign.

          The committee may wish to consider removing this provision of 
            the bill and retaining the authority of the Legislature to 
            revise this timeline as it sees fit.  
           
           5)Third Party Payment for Slate Mailer Placement  :  Under 
            existing law, a slate mailer must have an asterisk next to a 
            ballot measure or candidate that appears in the slate mailer 
            if that candidate or ballot measure has paid to appear in the 
            slate mailer.  However, if someone other than the candidate or 
            ballot measure committee pays the slate mailer organization to 
            include a candidate or ballot measure committee in the slate 
            mailer, no asterisk or other designation is included in the 
            mailer.  So, for instance, if a general purpose committee 
            makes an independent expenditure by paying a slate mailer to 
            include a candidate that the general purpose committee has 
            endorsed, the slate mailer itself would have no indication 
            that the slate mailer organization had been paid to include 
            that candidate in the mailer.

          This bill would require a slate mailer to include an asterisk 
            next to a candidate or ballot measure if the slate mailer 
            received payment to include that candidate or measure, 
            regardless of who paid the slate mailer organization.

           6)Technical Issue  :  The definition of the term "cumulative 
            contributions" that currently appears in the bill includes a 
            drafting error.  To correct this drafting error, committee 
            staff recommends the following technical amendment:  On page 
            16, line 1, strike out "after" and insert: "before".

           7)Arguments in Support  :  The sponsor of the bill, the California 
            Clean Money Campaign, writes the following in support of the 
            bill: 
           
                Full and complete disclosure in political advertising is 
               needed now more than ever. The Supreme Court's 5-4 Citizens 
               United v. FEC decision unleashed the floodgates of 
               anonymous spending on campaigns by ruling there could be no 








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               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".

               Over $235 million was spent on California ballot measures 
               in 2010 alone, almost all of it by veiled actors hiding 
               behind innocuous sounding names that hide their real 
               funders.

               AB 1148 addresses these problems by requiring the three 
               largest funders of political ads to be clearly identified 
               with their names and logos on the ads themselves, so voters 
               know who is actually paying for them. It applies to all 
               television ads, radio ads, print ads, mass mailers, and 
               websites for or against state and local ballot measures, 
               and to independent expenditures for and against candidates. 
               It applies whether ads are paid for by corporations, 
               unions, millionaires, or anybody else.

               AB 1148 is constitutional and reasonable. It in fact 
               reduces the time required for disclosure in typical radio 
               ads from 10-14 seconds in many cases under current law down 
               to only 6-7 seconds in most cases, while at the same time 
               being far clearer about who is actually paying for the ads.

               Required disclosure for television ads is only 3 seconds, 
               enough to clearly get across to the viewers who the top 
               three funders of the ad are, without imposing an undue 
               burden on political advertisers.

           8)Arguments in Opposition  :  In opposition to this bill, the 
            California Broadcasters Association writes:
           
                We have been working with the ÝFPPC] staff and the FPPC 
               Chairman's Task Force for the past year in an effort to 
               resolve the already burdensome disclosure regulations.  One 
               of the stated aims of the Task Force was that "Disclaimer 
               rules should reflect the First Amendment and practical 
               limitations on the amount of space disclaimers take up on 
               political ads."  The ÝFPPC] has already recognized that 
               Internet disclaimers must be sensitive to reasonable 
               guidelines for space and can be placed outside the 
               advertisement.









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               The time constraints in broadcast advertising pose similar 
               problems.  Current disclosures can now require up to 50% of 
               a 30-second radio spot.  If we try to add lengthy spoken 
               disclosures like a web site address, it will discourage 
               consultants from using the medium-costing your local 
               stations revenue and jobs.

               It was appropriate to ask all media to place disclosures 
               inside an ad when they took up little time and space.  That 
               is no longer the case.  ÝThis] bill will impose more 
               disclosure requirements on political ads than are currently 
               required in less protected speech such as commercial ads.

               We have been working with the ÝFPPC] to move these lengthy 
               disclosures to where listeners and viewers tell us they 
               want them: on a web site or toll free number.  
                
           9)Political Reform Act of 1974  :  California voters passed an 
            initiative, Proposition 9, in 1974 that created the FPPC and 
            codified significant restrictions and prohibitions on 
            candidates, officeholders and lobbyists. That initiative is 
            commonly known as the PRA.  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.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Clean Money Campaign (sponsor)
          California Alliance for Retired Americans
          California Church IMPACT
          California Common Cause
          California National Organization for Women
          Congresswoman Anna Eshoo
          Democratic Club of the Conejo Valley (prior version)
          Environmental Caucus of the California Democratic Party
          Greenlining Institute
          League of Women Voters of California
          Lutheran Office of Public Policy - California
          Planning and Conservation League
          Progressive Caucus of the California Democratic Party
          Southwest California Synod, Evangelical Lutheran Church in 
          America








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          One individual

           Opposition 
           
          California Broadcasters Association 
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094