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sr-032012-13c13 -C March 20, 2012 CITY CLERK'S OFFICE - MEMORANDUM To: City Council From: Councilmember McKeown Date: March 20, 2012 13 -C: Request of Councilmember McKeown that the Council authorize City of Santa Monica support for the California DISCLOSE Act, AB 1648 (Brownley), which would require enhanced public information regarding the true funding of political messages including slate cards, mass mailings, and broadcast advertising; and that our support be conveyed to legislators and the Governor in hopes of speedy enactment." 13 -C March 20, 2012 AB 1648 Assembly Bill - INTRODUCED Page 1 of 10 BILL NUMBER: AB 1648 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Brownley (Principal coauthors: Assembly Members Fong and Gallo) (Coauthors: Assembly Members Alejo, Ammiano, Beall, Blumenfield, Bonilla, Dickinson, Fletcher, Galgiani, Gordon, Hayashi, Hill, Huber, Huffman, Bonnie Lowenthal, V. Manuel Perez, and Wieckowski) (Coauthor: Senator Hancock) FEBRUARY 13, 2012 An act to amend Sections 84305.5, 84504, and 84505 of, to add Sections 84506.1, 84506.2, and 84506.3 to, to repeal Sections 84502, 84503, and 84506.5 of, and to repeal and add Sections 84501, 84506, 84507, and 84508 of, the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGEST AN 1648, as introduced, Brownley. Political Reform Act of 1974: advertisements: disclosure. The Political Reform Act of 1974 regulates mass mailings, known as slate mailers, that support or oppose multiple candidates or ballot measures for an election. The act requires that each slate mailer identify the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures that is sending the slate mailer, and to contain other specified information in specified formatting. The act requires that each candidate and each ballot measure that has paid to appear in the slate mailer be designated by an asterisk. This bill would instead require that a candidate or ballot measure appearing in the .slate mailer be designated by an asterisk if the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures that is sending the slate mailer has received payment to include the candidate or ballot measure in the slate mailer. The bill would also recast the language of the prescribed notice to voters that must be included on a slate mailer. The act also regulates advertisements, which are defined as any general or public advertisement that is authorized and paid for by a person or committee for the purpose supporting or opposing a candidate for elective office or aballot measure or ballot measures. The act places certain disclosure requirements on advertisements for or against any ballot measure, including that the advertisement disclose any person who has made cumulative contributions of $50,000 or more, as prescribed. The act places more specific disclosure requirements on broadcast or mass mailing advertisements that are paid for by independent expenditures that support or oppose a candidate or ballot measure. This bill would repeal provisions relating to disclosures for advertisements paid for by an independent expenditure and required disclosures of persons who have made cumulative contributions of $50,000 or more. This bill would, instead, impose specified disclosure requirements on radio, television, and video advertisements, and certain mass mailing and print advertisements that support or oppose a candidate or ballot measure or solicit contributions in support of those purposes. The bill would require advertisements that are authorized by a candidate or agent of the candidate to include a statement in which the candidate identifies himself or herself and states that he or she approves the message, as http: / /www.leginfo.ca.gov /pub /l l -12 /bill /asmlab_ 1601 - 1650 /ab_ 1648 _bill_20120213_introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED specified. The bill would require advertisements that are not authorized by a candidate or an ,agent of the candidate to disclose, in a prescribed format, the 3 largest identifiable contributors, as defined, of the committee that paid for the advertisement. The bill would require mass mailings or.print advertisements that are paid for by certain persons who are not committees to disclose the name of that person as the funder of the mass mailing or print advertisement. The bill would also require that certain committees establish and maintain a committee disclosure Internet Web site, as defined, which discloses the top 10 identifiable contributors and provides a link to the Internet Web site maintained by the Secretary of State for campaign finance disclosures of the committee. The bill would require these advertisements to identify the address for the committee disclosure Internet Web site. Existing law makes -a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties. This bill would impose a state - mandated local program by creating additional crimes. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act's purposes upon a 2/3 vote of each house and compliance with specified procedural requirements. This bill would declare that it furthers the purposes of the act. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 84305.5 of the Government Code is amended to read: 84305.5. (a) -A}e- A slate mailer organization or committee primarily formed to support or oppose one or more ballot measures shall not send a slate mailer unless the slate mailer complies with all of the following (1) The name, street address, and city of the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures are shown on the outside of each piece of slate mail and on at least one of the inserts included with each piece of slate mail in no less than 8 -point roman type , which shall be in a color or print i -ter that contrasts with the background so as to be easily legible. A post office box may be stated in lieu of a street address if the street address of the slate mailer organization or the committee primarily formed to support or oppose one or more ballot Ineastnre- measures is a matter of public record with the Secretary of State's Political Reform Division. (2) At the top or bottom of the front side or surface of at least one insert or at the top or bottom of one side or surface of a postcard or other self - mailer, there is anotice in at least 8 -point roman boldface type, which shall be in a color or print Uv'+eh that contrasts with the background so as to be easily legible, and in a printed or drawn box and set apart from any other printed matter. The notice shall consist of the following statement: Page 2 of 10 http: / /www.leginfo.ca.gov/ pub /11 -12 /bill /asm/ab_1601- 1650/ab_1648 bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED NOTICE TO VOTERS I I ITHIS DOCUMENT WAS PREPARED BY (name of slate Imailer organization or committee primarily I Iformed to support I I I ]or oppose one or more ballot measures), NOT AN I (OFFICIAL I I I (POLITICAL PARTY ORGANIZATION. Appearance in this I I I Imailer does not necessarily imply endorsement of I (others I I I (appearing in this mailer, nor does it imply I (endorsement of, or I I I (opposition to, any issues set forth in this I Imailer. I (Appearance I by each candidate and ballot I Imeasure I Ithat is designated by an * has been paid for. I ------------------------------------- ------- ---- ttn e= (3) (A) Each candidate and each ballot measure =Hiatt for which the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures has —pa!ed received payment to - appear include the candidate or ballot measure in the slate mailer is designated by an. *. -iknr A candidate or ballot measure prat— for which the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures has not — gai-eF received payment to — arseat include the candidate or ballot measure in the slate mailer +.r shall not be designated by an *. (B) The * required by this paragraph shall be of the same type size, type style, color or contrast, and legibility as is used for the name of the candidate or the ballot measure name or number and position advocated to which the * designation applies , except that in no case shall the * be required to be larger than 10 -point boldface type. The designation shall immediately follow the name of the candidate, or the name or number and position advocated on the ballot measure where the Page 3 of 10 http: / /www.leginfo.ca.gov /pub /I 1 -12/ bill /asm/ab_1601- 1650/ab_1648_bill 20120213_introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED designation appears in the slate of candidates and measures. If there is no slate listing, the designation shall appear at least once in at least 8 -point boldface type, immediately following the name of the candidate, or the name or number and position advocated on the ballot measure. (5) (4) The name of a candidate appearing in the slate mailer who is a member of a political party differing from the political party Ezra that the mailer appears by representation or - indicia to represent is accompanied, immediately below the name, by the party designation of the candidate, in no less than 9 -point roman type which shall be in a color or print that contrasts with the background so as to be easily legible. The designation shall not be required in the case of candidates for nonpartisan office. (b) -.te The name,' street address, and city of the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures, as required by paragraph (1) of subdivision (a), and the notice required by paragraph (2) of subdivision (a) may appear on the same side or surface of an insert in the slate mailer. SEC. 2. Section 84501 of the Government Code is repealed. Tgn SEC. 3. 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 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 ballot measures. (2) "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 other advertisement as determined by regulations of the Commission. (b) "Committee disclosure Internet Web site" means the Internet Web site for a committee identifying the top identifiable contributors to that committee, as described in Section 84506.3. (c) "Cumulative contributions" means the cumulative amount of contributions received by a committee beginning 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 ballot measures and ending seven days before the advertisement is sent to the printer or broadcast station or uploaded to the Internet. (d) "Identifiable contributor" means a person or committee that has made cumulative contributions of at least ten thousand dollars ($10,000) to a committee. Page 4 of 10 http: / /www.leginfo.ca.gov/ pub /ll -12 /bill /asmlab_1601- 1650/ab_1648 bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED SEC. 4. Section 84502 of the Government Code is repealed. SEC. 5. Section 84503 of the Government Code is repealed. SEC. 6. Section 84504 of the Government Code is amended to read: 84504. (a) Any committee that supports or opposes one or more ballot measures shall name and identify itself using a name or phrase that clearly identifies the economic or other special interest of its major donors of fifty thousand dollars ($50,000) or more in any reference to the committee required by law, including, but not limited, to its statement of organization filed pursuant to Section 84101. (b) If the major donors of fifty thousand dollars ($50,000) or more share a common employer, the identity of the employer shall also be disclosed. (c) Any committee which supports or opposes a ballot measure — shall print or broadcast its name as provided in this section as part of any advertisement or other paid public statement , unless the advertisement is required to include a disclosure pursuant to any other section of this article . (d) 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. 7. Section 84505 of the Government Code is amended to read: 84505. In addition to the requirements of Sections 84583, 84504, 84506, 84506.1, 84506.2, and 8449 . S 84506.3 , the committee placing the advertisement or persons acting in concert with that committee shall be prohibited from creating or using a noncandidate - controlled committee or a nonsponsored committee to avoid, or that results in the avoidance of, the disclosure of any individual, industry, business entity, controlled committee, or sponsored committee as a major funding source. SEC. 8. Section 84506 of the Government Code is repealed. Page 5 of 10 http: / /www.leginfo.ca.gov/ pub /ll -12 /bill /asmlab_1601- 1650/ab_1648 bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED Page 6 of 10 SEC. 9. Section 84506 is added to the Government Code, to read: 84506. (a) A radio advertisement that supports or opposes a candidate or ballot measure or solicits contributions in support of that purpose shall, if the advertisement is authorized by a candidate or an agent of the candidate, include an audio statement in which the candidate identifies himself or herself and states that the candidate has approved the message. (b) A radio advertisement that supports or opposes a candidate or ballot measure or solicits contributions in support of that purpose shall, if the advertisement is not authorized by a candidate or an agent of the candidate, include at the end of the advertisement .a disclosure read in a clearly spoken manner in a pitch and tone substantially similar to the rest of the advertisement that reads as follows: "Top funders of this ad are state names 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 state Internet Web site address of the committee disclosure Internet Web site]." (c) If there are fewer than three identifiable contributors, the disclosure shall be adjusted accordingly to disclose the qualifying identifiable contributors, if any. If the committee does not have any identifiable contributors, but the committee has received cumulative contributions totaling at least ten thousand dollars ($10,000), the disclosure shall be adjusted to include the name of the committee in the place of the names of identifiable contributors. SEC. 10. Section 84506.1 is added to the Government Code, to read: 84506.1. (a) A television or video advertisement that supports or opposes a candidate or ballot measure or solicits contributions in support of that purpose shall, if the advertisement is authorized by a candidate or an agent of the candidate, include a statement in which the candidate identifies himself or herself and states that the candidate has approved the message. The candidate statement shall be made using an unobscured, full- screen video of the candidate, alone, making the statement, or by using an unobscured, full- screen, and clearly identifiable photographic image of the candidate, alone, that is displayed during an audio voiceover of the candidate reading the statement. (b) A television or video advertisement that supports or opposes a candidate or ballot measure or solicits contributions in support of that purpose shall, if the advertisement is not authorized by a candidate or an agent of the candidate, include all of the following at the end of the advertisement: (1) A full- screen without audio on a black background for a minimum of three seconds that is dedicated to the disclosure described in this subdivision. (2) The text "Top Funders for This Ad" located at the top of the television or video display screen and centered horizontally. The text shall be white in color and the font size shall be at least 5 percent of the height of the television or video display screen. (3) Immediately below the text described in paragraph (2), the logos, if any, as they appear on the Internet Web site homepage of the identifiable contributor, for the identifiable contributors who made the three largest cumulative contributions to the committee that paid for the advertisement. Each logo shall occupy at least 15 percent of the width or height of the television or video display screen and the logos shall be displayed from left to right in http: / /www.leginfo.ca.gov/ pub /11- 12/bill /asm /ab_1601- 1650 /ab 1648 bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED Page 7 of 10 descending order beginning with the largest identifiable contributor. (4) Immediately below the logos, if any, described in paragraph (3), or beneath the text described in paragraph (2) if no identifiable contributor has logo, the identifiable contributors who have made the three largest cumulative contributions to the committee that paid for the advertisement. The three identifiable contributors shall each 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. The name of each of the three identifiable contributors shall be centered horizontally. The text shall be white in color and the font size shall be at least 5 percent of the height of the television or video display screen. (5) The text "Full Funding Details At insert Internet Web site address of the committee disclosure Internet Web site]." The text shall be white in color and the font size shall be equivalent to 4 percent of the height of the television or video display screen. The text shall be located in apposition that is vertically 4 percent above the bottom of the television or video display screen. (6) If there are fewer than three identifiable contributors, the disclosure shall be adjusted accordingly to disclose only those that qualify as identifiable contributors, if any. If the committee does not have any identifiable contributors, but the committee has received cumulative contributions totaling at least ten thousand dollars ($10,000), the disclosure shall be adjusted to include the name of the committee in the place of the names of identifiable contributors. SEC. 11. Section 84506.2 is added to the Government Code, to read: 84506.2. Except for slate mailers or advertisements that are authorized by a candidate or an agent of the candidate, any mass mailing or print advertisement 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 who is not a committee and who spends more than one thousand dollars ($1,000) on mass mailing or print advertising cumulatively in the period beginning 18 months prior to the date the person made his or her first expenditure to qualify, support, or oppose the candidate for elective office or the ballot measure and ending seven days before the mass mailing or print advertisement is sent to the printer, shall include a disclosure area on the largest page of the mass mailing or print advertisement that meets all of the following criteria: (a) The disclosure area shall 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 the line shall be a color that is darker than the background color of the remainder of the disclosure area. The disclosure area within the border line shall 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 the other areas of the mass mailing or print advertisement. (b) For purposes of a mass mailing or print advertisement paid for by a committee, the disclosure shall include the following: (1) The text "Top Fenders of This Ad" shall be located at the top of the disclosure area and centered horizontally in the disclosure area. The text shall 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. (2) Immediately below the text described in paragraph (1) shall be printed the logos, if any, as they appear on the Internet Web site homepage of the identifiable contributor, for the identifiable contributors who made the three largest cumulative contributions to http: / /www.leginfo.ca.gov /pub/ 11- 12/ bil l /asm /ab_1601- 1650/ab_i648_bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED the committee. Each logo shall occupy at least 8 percent of the width or height of the page on which the disclosure area is located and the logos shall be displayed from left to right in descending order beginning with the largest identifiable contributor. (3) Immediately below the logos, if any, described in paragraph (2), or beneath the text described in paragraph (1) if no identifiable contributor has a logo, shall be identified by name the identifiable contributors who have made the three largest cumulative contributions to the committee that paid for the mass mailing or print advertisement. The three identifiable contributors shall each 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. The name of each of the three identifiable contributors shall be centered horizontally. The text shall identify the identifiable contributor 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. (4) The text "Full Funding Details At insert Internet Web site address of the committee disclosure Internet Web site]." The text shall be located at the bottom of the disclosure area and shall be in 10 -point font size for pages smaller than 8.5 inches by 11 inches and at least 12 -point font size for pages that are equal to, or larger than, 8.5 inches by 11 inches. (5) If there are fewer than three identifiable contributors, the disclosure shall be adjusted accordingly to disclose the qualifying identifiable contributors, if any. If the committee does not have any identifiable contributors, but the committee has received cumulative contributions totaling at least ten thousand dollars ($10,000), the disclosure shall be adjusted to include the name of the committee in the place of the names of identifiable contributors. (c) For purposes of a mass mailing or print advertisement paid for by a person who is not a committee and who spends more than one thousand dollars ($1,000) on mass mailings or print advertisements, as described in this section, the disclosure shall include the text "This advertisement funded by insert name of the person who paid for the mass mailing or print advertisement]." The text shall be centered within the disclosure area and shall 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. The person shall not be required to create or maintain a disclosure Internet Web site described in Section 85406.3. SEC. 12. Section 84506.3 is added to the Government Code, to read: 84506.3. Except for a committee that is controlled by a candidate, a committee that pays for an advertisement described in this article shall establish and maintain a committee disclosure Internet Web site. If the committee has an Internet Web site homepage, that Internet Web site may also serve as the committee disclosure Internet Web site. The homepage of the committee disclosure Internet Web site and any other Internet Web sites maintained by the committee shall include a disclosure statement area for the purpose of making a contribution disclosure statement that includes all of the following: (a) The disclosure statement area shall be at least 250 pixels wide. The disclosure area shall have a white background and a border that is dark in color. (b) A title that reads "Top Funders of This Committee." The text shall be black in color and shall be at least 10 -point font size. (c) Immediately below the text described in subdivision (b), a list of the identifiable contributors who have made the 10 largest cumulative contributions to the committee. Each of the 10 identifiable contributors shall be disclosed on a separate vertical line, in descending order, beginning with the identifiable Page 8 of 10 http: / /wwwleginfo.ca.gov /pub /11 -12/ bill /asm/ab_1601- 1650/ab_1648_bill 20120213 introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED Page 9 of 10 contributor who made the largest cumulative contribution on the first line. The text shall be black in color and shall be at least 9 -point font size. (d) Immediately below the text described in subdivision (c), the logos, if any, as they appear on the Internet Web site homepage of the identifiable contributor, for the identifiable contributors who - made the 10 largest cumulative contributions to the committee. Each logo shall occupy at least 75 horizontal or vertical pixels and shall 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 this title for the current election cycle. The link shall be labeled "Full funding info at Secretary of State's Internet Web site." The link shall be a standard hyperlink that is displayed as blue underlined text in Arial equivalent font in at least 9 -point font size. (f) If there are fewer than 10 identifiable contributors, the disclosure shall be adjusted accordingly to disclose the qualifying identifiable contributors, if any. If the committee does not have any identifiable contributors, but the committee has received cumulative contributions totaling at least ten thousand dollars ($10,000), the disclosure shall be adjusted to include the name of the committee in the place of the names of identifiable contributors. SEC. 13. Section 84506.5 of the Government Code is repealed. SEC. 14. Section 84507 of the Government Code is repealed. SEC. 15. Section .84507 is added to the Government Code, to read: 84507. For purposes of any disclosure required by Sections 84506 to 84506.3, inclusive, for advertisements that are not authorized by a candidate or an agent of the candidate, the following shall also apply in the event that an identifiable contributor is a person who is an individual: (a) If the committee receiving the contribution is supporting or opposing a candidate, then the disclosure shall include the occupation and employer of the identifiable contributor in addition to the contributor's name. (b) 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, then the disclosure shall include the occupation and employer of the identifiable contributor in addition to the contributor's name. However, if an employer of an identifiable contributor is also an identifiable contributor of that committee, then the contributions of the employees shall, instead, be deemed to be contributions by the employer for purposes of determining the total cumulative contribution made by the employer in order to determine which identifiable contributors shall be disclosed on an advertisement pursuant to this article. (c) If the committee receiving the contribution is supporting or opposing a ballot measure, and the passage or defeat of the ballot measure does not directly benefit or harm the employer of the identifiable contributor, then the disclosure shall include only the littp: / /www.leginfo.ca.gov /pub /11 -12 /bill /asm /ab 1601- 1650/ab -1648 bill 201202l3_introduced.html 3/8/2012 AB 1648 Assembly Bill - INTRODUCED name of the identifiable contributor. SEC. 16. Section 84508 of the Government Code is repealed. 84S89 ftnd 84566, neol SEC. 17. Section 84508 is added to the Government Code, to read: 84508. Disclosures made pursuant to Sections 84506 to 84506.3, inclusive, shall be sufficient to identify the identifiable contributor but need not include such legal terms as "incorporated," "committee," "political action committee," or "company," or their abbreviations. Nothing in this section shall prevent a contributor from being disclosed as a name used in common usage or parlance, including, but not limited to, an abbreviation or acronym. 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. Page 10 of 10 http: / /Www.leginfo.ca.gov /pub /ll -12 /bill /asm /ab 1601- 1650/ab_1648_bill 20120213_fntroduced.btml 3/8/2012 About AB 1648, California DISCLOSE Act - YesFairElections.org About AB 1648, California DISCLOSE Act Change the Big Money Game with True Transparency AB 1648, the California DISCLOSE Act, would fight back against unlimited hidden spending on campaigns by letting voters know who REALLY is paying for political ads — on the ads themselves. Authored by Assemblymember Julia Brownley and sponsored by the California Clean Money Campaign, AS 1648 would amend the Political Reform Act of 1974. AS 1648 is a direct follow -up to AB 1148, which received 52 votes in the Assembly on January 31st, 2012, missing its 2/3 vote requirement by only two votes. California DISCLOSE Act Provisions • Requires 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. • 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, or millionaires. • Tells voters where to find the details — Requires ads to list a website with greater disclosure and a link to the Secretary of State's website We Need AB 1648 The Supreme Court's Citizens United decision unleashed unlimited anonymous spending on campaigns. Over $235 million was spent on CA ballot measures in 2010 alone, almost all of it by veiled actors hiding behind innocuous - sounding names like "Stop Hidden Taxes" or the "California Jobs Initiative ". Government - changing propositions are passed by hidden special interests spending millions on deceptive ads. Example: Prop 26 passed after $18 million in ads, stopping the state or cities from raising fees even on polluters without a 213 vote. Three largest funders: Chevron, the American Beverage Association, and Philip Morris. Page I of 3 * E -mail *Zip code _ • . Will "pierce through" hidden funders by requiring political ads to report their three largest actual contributors, no matter how many committees or groups their contributions pass through. • Applies to slate mailers: Requires slate mailers to show when ads are paid for by independent expenditures. • Requires candidates to appear and say they "approve this message ", just like federal candidates. Disclosure of Big Spenders Works 9.1 ■ 0 ■ California Field Poll Support for Increased Disclosure 10/13/2011 http: / /www.yesfairelections.org /about/ 3/8/2012 10% Favor Oppose http: / /www.yesfairelections.org /about/ 3/8/2012 About AB 1648, California DISCLOSE Act - YesFairElections.org • The attempt by Texas oil interests to overturn California's landmark climate change law with Prop 23 in 2010 failed because opponents had enough funds to disclose to voters that it was funded by Texas oil companies. • Despite tens of millions spent in 2010 on Props 16 and 17 by PG &E and Mercury Insurance, both lost because enough people knew they were the largest spenders and took that into account when viewing their ads. Unfortunately, the largest funders aren't usually as clear as in Props 16, 17, and 23. AS 1648 would make sure they're clear all the time. AB 1648 is Constitutional and Reasonable AB 1648 Links Would your group like a speaker onto endorse? Email or call (310) 397 -0200 Print AS 1648 Overview Print AS 1648 FAO Print AS 1648 Provisions Print AS 1648 Comparison to Current Law Print AS 1648 Endorsers Print AS 1648 Petition Print AS 1648 Language Print AS 1648 Before and After Example Other AS 1648 Materials The California DISCLOSE Act doesn't have to wait for a constitutional amendment. California can put it into place itself. • 8 out of 9 justices in the Supreme Court's Citizens United decision noted the problems when groups run ads "while hiding behind dubious and misleading names" and said we need transparent disclosure for voters "to make informed decisions and give proper weight to different speakers and messages." • Required radio ad disclosures are shorter than those in current law in most cases — but more effective. • Print ad and mass mailer disclosure areas are similar in size to current required slate mailer disclosure areas. See our full comparison to current disclosure law to see how AB 1648 is both reasonable and effective. Californians are Ready for the California DISCLOSE Act 84% of California voters said they favored legislation to "increase the public disclosure requirements of initiative sponsors to more clearly identify who are its major funders" in the October 13, 2011 Field Poll, including 86% of Democrats, 88% of Independents, and 78% of Republicans. "The overwhelming power of money to mislead voters is a profound moral issue." — Reverend Dr. Rick Schlosser, Executive Director of California Church IMPACT, representing 1.5 million people of faith in California. Tell voters who is really funding propositions and attack ads when it counts! Print Before and After Examples Page 2 of 3 Sign Up Create an accxlt cc log in to see what your friends like. California Disclose Acton -t, Facebook Like California Disclose Act ' What do you know? The GOP presidential candidates each just happen to be pushing ideas that their billionaire Super PAC donors are pushing. You know, the donors that most voters don't know about. What coincidence... Campaigns can push mega - donors'pet causes 815 people like California Disclose Act. Bryson Shirley An ,n ( Marie F=[cb[Jk 5.ci pban _ .. .. AS 1148 ENDORSED BY League of 4Vommr Voters of California California Clean Money Campaign California Alliance of Retired Americans California Common Cause California Church IMPACT Green Chamber of Commerce Greenlining Institute Planning and Conservation League Redwood Empire Business Association Sierra Club California Southwest California S}mod of the Evangelical Lutheran Church in America INill!aw C. Velazquez Institute Ted Costa, CFO of People's Advocate And Other Leading Groups and Individuals See all... http: / /www.yesfairelections.org /about/ 3/8/2012 About AB 1648, California DISCLOSE Act - YesFairElections.org for 2010's Yes on 26 and 25 Real disclosure with AB 1148 for the same ads ORTFAIAELECTIONS Page 3 of 3 iGive.com Donated v+� } We get %5%flen you loin and another $5 when you select California Clean a° Money Campaign asyour cause. RS, This campaign ends March 31, 2012 a, when 1,000,000 Buttons are iv <lalled, vorcO2V6r Comes Idst or 6% of all purchases through Amazon.com Help for free! Learn more The need for the California DISCLOSE Act of 2012 was shown by all the deceptive political ads that helped lead to the defeat of Proposition 15. But Prop 15 built a huge coalition for Fair Elections and helped lead to the overwhelming victory of Measure H in Los Angeles with 75% of the vote. Website designed by Catherine Ashworth of Effective Interfaces and built by James Saxon (James Saxon) of Shan ing Software Design Consultation as a project of Non - Profit Catalyst, supported by FreeGiving.com. © California Clean Money Campaign California Clean Money Campaign 3916 S. Sepulveda Blvd, Suite 109, Culver City, CA 90230. United States. Phone: (310) 397 -0200. Fax: (888) 633 -8898. info @CAclean.org http: / /www.yesfairelections.org /about/ 3/8/2012