BEVERLY
HILLS
STAFF REPORT
Meeting Date: January 4, 2022
To: Honorable Mayor and City Council
From: Laurence S. Wiener, City Attorney
Subject: Update to Campaign Disclosure Regulations
Attachments: 1. Proposed Ordinance
2. State DISCLOSE Act
INTRODUCTIONSince 2010 the City has had an ordinance that covered campaign disclosurerequirements for ballot measure committees (i.e., committees formed to support or oppose initiatives and referenda). The legislation forced ballot measure committees todisclose in their advertisements who were their “top contributors.” Top contributors aredefined as those contributors donated more than $10,000. The legislation also required that an advertisement supporting or opposing a ballot measure contain the official title provided by the City Attorney and contain a reference that additional financialinformation could be obtained at the City’s website.
Although cutting-edge when it was adopted, this ordinance has become out of step with new technology. Additionally, the City Council has previously indicated a desire to expand this ordinance so that it encompasses mote than simply ballot measures.
In 2018, the State legislature adopted the DISCLOSE (Democracy is Strengthened by Casting Light on Spending in Elections) act which incorporated many of the concepts embodied in the 2010 ordinance. Thus, the City Attorney’s office is recommending that the City adopt the regulations of the DISCLOSE act and supplement them with some unique features of the Beverly Hills ordinance.DISCUSSION In 2010, the City of Beverly Hills enacted disclosure requirements applicable to ballot measure committees. At that time, this legislation was considered to be trailblazing.However, the 2010 ordinance has now become a bit outdated. In 2018, the Statelegislature adopted the DISCLOSE (Democracy is Strengthened by Casting Light onSpending in Elections) act. This legislation incorporated many of the City of Beverly Hillsrequirements and provided additional detail in its regulations. Furthermore, thislegislation and subsequent legislation contains updated requirements to conform to new technology and advertising forms. As a consequence, the City Attorney’s office is B07$5-0001\2606919v1 .doc
Meeting Date: January 4, 2022
proposing an update of the 2010 ordinance to incorporate the requirements of the DISCLOSE act and preserve the unique aspects of the 2010 ordinance.
Proposed Ordinance Provisions
Pursuant to City Council direction, the proposed ordinance will expand the scope of the proposed regulations beyond ballot measure committees. Instead, the regulations will apply to any committee other than political party committees and candidate-controlledcommittees (which are limited to a maximum $450 contribution). Thus, in addition toapplying to referenda and initiatives, the proposed ordinance would apply its disclosure requirements to independently funded committees, including political action committees.
In addition, this ordinance will bring its requirements in line with the DISCLOSE act and subsequent clarifying amendments. Thus, committees will have one set of rules to abide by so that a different font or different audio message is not required by state and local law.
The proposed ordinance through incorporation of the DISCLOSE act, will also capture funds that are laundered through a separate organization in order to mask the true contributor. If funds are so earmarked, then the original contributor must be disclosed.
Also, the DISCLOSE act details specific rules for advertising on television and radio, print advertising, and public facing internet websites, including social media sites and text messages. There are rules regarding background color, contrast with text, size of disclosure, length of time of disclosure for shorter or longer radio commercials and otherdetails that were not covered in the 2010 Beverly Hills ordinance.
Additionally, the definition of advertising” will change. Previously advertising consisted of any communication other than a personal communication between individuals. Under the proposed ordinance advertising,” that requires disclosures, would not include 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. It wouldalso not include sky writing or wearing apparel or communications from an organization to its members.
Provisions Preseived from 2070
Of course, the threshold for triggering disclosures will remain lower for local elections and will continue to be the same as they were in 2010. While state law requires anycontribution of $50,000 or more to be disclosed, the proposed ordinance requires anycontribution of $10,000 or more to be disclosed.
Additionally, for initiatives and referenda, the proposed ordinance preserves the requirement for the advertisement to use the official title assigned to the initiative orreferendum. However, if the official title is too lengthy, the advertiser may use a twenty five word summary that is prepared by the City Attorney.
30785-0001\2606919v1 .doc
Meeting Date: January 4, 2022
City Attorney Recommendation
The City Attorney’s office would recommend adoption of the proposed ordinance. The proposed ordinance would expand the reach of the 2010 ordinance, would address technologies that were not addressed in the 2010 ordinance, and would close loopholesthat were not addressed in the 2010 ordinance. In addition, it would better protect the City’s ordinance from legal challenge and would make compliance easier.FISCAL IMPACT The proposed update to the ordinance would not have any material fiscal impact on the City.
RECOMMENDATION
This ordinance is on the study session agenda to receive questions and comments fromthe City Council. If the City Council believes that this update is acceptable, it will be placed on the City Council’s consent calendar for introduction at the second meeting in January.
Laurence S. Wiener,
City Attorney
Approved By
30785-0001\2606919v 1 .doc
ORDINANCE NO.
AN ORDINANCE Of THE CITY Of BEVERLY HILLS
AMENDING DISCLOSURE REQUIREMENTS FOR
BALLOT MEASURE COMMITTEES AND AMENDING
THE BEVERLY HILLS MUNICIPAL CODE
THE CITY COUNCIL Of THE CITY Of BEVERLY HILLS HEREBY
ORDAINS AS fOLLOWS:
Section 1. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to replace the definition of ADVERTISEMENT as follows:
“ADVERTISEMENT shall have the same meaning as set forth in Government Code Section 84501”
Section 2. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of Cumulative Contribution as follows:
“CUMULATIVE CONTRIBUTIONS means the cumulative amount of contributions received by a committee beginning 12 months before the date of expenditure and ending 7 days before the time advertisements are sent to the printer orbroadcaster.” Section 3. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of “Top Contributors” asfollows:
“TOP CONTRIBUTORS shall have the same meaning as set forth in Government Code Section 84501 except that the threshold for a Top Contributor shall be ten thousanddollars ($10,000) rather than fifty thousand dollars ($50,000).” Section 3. Section 1-8-5 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended and restated as follows:
‘WA. In addition to the requirements of this chapter, every committee and ballot measure committee, shall comply with the registration and reporting requirements set forth in the political reform act applicable to committees. In addition to other reports 24453583 —1—
required by law, any committee and ballot measure committee that makes a qualifying payment shall, within seventy two (72) hours of making the first such qualifyingpayment. file in the office of the city clerk a letter containing the name and address of the committee, the full street address of the committee, the FPPC/Secretary of Stateidentification number of the committee, the name of the treasurer of the committee, if applicabLe, the identifying letter or number of the city balLot measure(s) supported or opposed by such qualifying payment and, if applicable the candidate supported oropposed by such qualifying payment. It shall be unlawful for any person or committee toknowingly file or publish any name or street address for a committee that is not thecomplete and accurate name and/or street address of the committee.
B. In addition to any preelection statement required by the Political Reform Act, every committee and ballot measure committee shall file a preelection statement for the following periods at the following times:
1. For the period ending thirty (30) days before the election, the statement shall be filed not later than twenty five (25) days before the election.
2. For the period ending ten (10) days before the election, the statement shall be filed no later than five (5) days before the election.
Any contribution from any person of more than one thousand dollars ($1,000.00), individually or in the aggregate, that is made less than ten (10) days before the electionshall be reported to the city clerk on the next business day following receipt of the contribution.
C. Every advertisement in support of or opposition to any city ballot measure placed by a ballot measure committee, or in an advertisement in support of or in opposition to a city council or city’ treasurer candidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee.shall comply with the disclosure requirements contained in Article 5, Disclosure in Advertisements, of Chapter 4, Campaign Disclosure, of Title 9, Political Reform, of the Government Code beginning with section 84501 and the accompanying regulations of theFair Political Practices Commission.
I. For the purposes of this Subsection C, any reference in the Government Code to “top contributors” shall mean top contributors as defined in this Chapter of the Beverly Hills Municipal Code.
D. Every advertisement in support of or opposition to a city ballot measure or every advertisement in support of or opposition to a city council or city treasurercandidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee, shall comply with the disclosure requirements contained in Article 5, Disclosure in, shall include a statement indicating that additional information about contributions to the ballot measure committee or other committee paying for theadvertisement is available at x\\vw.hevcrlyhills.oru. The statement shall be substantially in the following form: “funding details at i’i’ui’. hc’vcrl’hitLs. or’.” 244535$_3 —2-
1. This requirement shall be waived for any advertisement that is required to have a similar reference to funding details at the Secretary of State’s website.
E. The city clerk shall maintain an online publicly available data base of all reports submitted by the ballot measure committees and other committees to the cityclerk.
F. In addition to the other requirements of this Section, every advertisement in support of, or opposition to one or more city ballot measures shall contain the official title of the city ballot measure, as provided by the City Attorney pursuant to Elections Code Section 9203, and a clearly audible or legible form.
1. If the title of the ballot measure exceeds 25 words, then the proponent or proponents of the ballot measure may request a shorter title. The City Attorney, within2 business days, shall provide a title that does not exceed 25 words.
2. The shortened ballot title prepared by the City Attorney shall be a true and impartial statement of the purpose of the proposed measure and shall not containarguments nor be likely to cause prejudice for or against the proposed measure. The shortened ballot title shall be used solely for the purposes of compliance with this Section, and the City Attorney’s original title and summary shall continue to be used to comply with all requirements of Article 1 of Chapter 3 of Division 9 (commencing with section 9200) of the Elections Code and for all other requirements imposed by state law.
3. A radio advertisement, or other advertisement that is solely audible, of less than 45 seconds shall be exempt from this requirement.
0. All disclosures shall conform to the requirements set forth in the Political Reform Act, unless a more stringent requirement is included herein. In that instance,committees shall comply with the applicable requirement in this Chapter.” 24453583 -3-
Section 4. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated inthe City within fifteen (15) days after its passage, in accordance with Section 36933 ofthe Government Code; shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk’s certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 5. Pursuant to California Government Code Section 81009.5, the City Clerk shall cause a copy of this ordinance to be forwarded to the California Fair PoliticalPractices Commission.
Section 6. Effective Date. The City Council hereby declares that this Ordinance relates to an election and shall take effect immediately upon its adoption.
Adopted:
Effective:PASSED, APPROVED and ADOPTED this day of , 2022.
ROBERT WUNDERLICHMayor of the City of Beverly Hills,
California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:LAURENCE S. WIENER GEORGE CHAVEZ City Attorney City Manager
24453583 —4—
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/ LEGISLATIVE INFORMATION
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GOVERNMENT CODE - GOV
TITLE 9. POLITICAL REFORM [81000 -91014] (Title 9 added June 4, 7974. by initiative Proposition 9.) CHAPTER 4. Campaign Disclosure [84100 - 84511] (Chapter 4 added June 4, 7974, by initiative Proposition 9 ARTICLE 5. Disclosure in Advertisements [84501 -84511] (Article 5 added November 5, 1996, by initiative Proposition 208, Sec. 37. )
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 subparagraphdoes 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 beconveniently 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 thecommittee’s ability to convey the intended message due to the nature of the technology used to make thecommunication. (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 contributorshall 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 toanother committee primarily formed to support or oppose the same state candidate or ballot measure and the funds Lised for the contribution were earmarked to sLipport or oppose that candidate or ballot measure, the committee receiving the earmarked contribution shall disclose the contributors who earmarked their funds as thetop 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 earmarkedfunds. The new committee shall disclose the contributor on the new committee’s advertisements if the definition oftop 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 earnarked 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 iii no case shall the same contribution be disclosed more than one time to avoid disclosure of additional contributors who earmarkedtheir 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 hasprohibited in writing the use of that person’s contributions to support or oppose candidates if the committee doesnot use such contributions to support or oppose candidates. (Amended by Stats. 2019. Ch. 558, Sec. 2. (AB 864) Effective January 1, 2020. Note: This section was added on Nov. 5, 1996, by initiative Prop. 208.)
$4501.1. The Commission shall not, by regulation, policy, opinion, or advice letter, construe or interpret any ofSections 82025, 84305, 84310, 84501 through 84511, inclusive, or Section 85704 as allowing the Commission toestablish or maintain any thresholds in quantity or amount that are not specified in those sections, Unless otherwise specified in this title, those sections apply regardless of quantity or amount.(Added by Stats. 2018, Ch. 777, Sec. 2. (AB 2155 Effective January 1, 2019.)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 candidatecontrolled committee established for an elective office of the controlling candidate, shall include the words “Ad paidfor 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 committeeestablished 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 84101if 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 fb) or fc) 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 emailmessage, the text described in subdivisions (a) and (b) may include the words “Paid for by” instead of “Ad paid forby.” (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.” (Amended by Stats. 2019, Ch. 558. Sec. 3.5. CAB 864) Effective January 1, 2020.) 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 tot an elective office of the controlling candidate, shall include the words “committee major funding from” followed by the names of the top contributors to the committee paying for the advertisement. If fewer than three contributors qualify as top contributors, only those contributors that qualify shall be disclosed pursuant to this section. If there are no contributors that qualify as top contributors, this disclosure is not required.(b) The disclosure of a top contributor pursuant to this section need not include terms such as “incorporated,” “committee,” “political action committee,” or “corporation,” or abbreviations of these terms, unless the term is part of the contributor’s name in common usage or parlance.
(c) If this article requires the disclosure of the name of a top contributor that is a committee pursuant to subdivision (a) of Section 82013 and is a sponsored committee pursuant to Section 82048.7 with a single sponsor,only the name of the single sponsoring organization shall be disclosed. (d) This section does not apply to a committee as defined by subdivision (b) or (c) of Section 82013. (Amended by Stats. 2019, Ch. 558, Sec. 4. CAB 864) Effective January 1, 2020.) 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 thebeginning or end of the advertisement, read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement, and shall last no less than three seconds. (b) Notwithstanding the definition of “top contribcitors” 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 (550,000) or more shall be disclosed.
(Repealed and added by Stats. 2017, Ch. 546, Sec. 12. (4B 249) Effective October 7, 2017. Operative January 1, 2018, by Stats. 2017, Ch. 546, Sec. 29.)
64504.1. (a) An advertisement paid for by a committee, other than a political party committee or a candidatecontrolled committee established for an elective office of the controlling candidate, that is disseminated as a video,including advertisements on television and videos disseminated over the Internet, shall include the disclosures required by Sections 84502 and 84503 at the beginning or end of the advertisement.(b) The disclosure required by subdivision (a) shall be written and displayed for at least five seconds of a broadcast of 30 seconds or less or for at least 10 seconds of a broadcast that lasts longer than 30 seconds. (1) The written disclosure required by subdivision (a) shall appear on a solid black background on the entire bottom one-third of the television or video display screen, or bottom one-fourth of the screen if the committee does not have or is otherwise not required to list top contributors, and shall be in a contrasting color in Anal equivalent type, and the type size for the smallest letters in the written disclosure shall be 4 percent of the height of the televisionor video display screen. The top contributors, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top contributor who made the largest cumulativecontributions on the first line. All disclosure text shall be centered horizontally in the disclosure area. It there areany top contributors, the written disclosures shall be underlined in a manner clearly visible to the average viewer,except for the names of the top contributors, if any. (2) The name of the top contributor shall not have its type condensed or have the spacing between charactersreduced to be narrower than a normal non-condensed Anal equivalent type, unless doing so is necessary to keep the name of the top contributor from exceeding the width of the screen. (c) An advertisement that is an independent expenditure supporting or opposing a candidate shall include the appropriate statement from Section 84506.5 in the solid black background described in paragraph (1) of subdivision (b) below all other text required to appear in that area in a contrasting color and in Anal equivalent type no less than 2.5 percent of the height of the television or video display screen. If including this statement causes the disclosures to exceed one-third of the television or video display screen, then it may instead be printed immediately above the background with sufficient contrast that is easily readable by the average viewer.(Amended by Stats. 2018, Ch. 777, Sec. 4. (AR 2155) Effective January 1, 2019.) $4504.2. (a) A print 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, shall include the disclosures required by Sections 84502, 84503, and 84506,5, displayed as follows:(1) The disclosure area shall have a solid white background and shall be in a printed or drawn box on the bottom of at least one page that is set apart from any other printed matter, All text in the disclosure area shall be incontrasting color and centered horizontally in the disclosure area. (2) The text shall be in an Anal equivalent type with a type size of at least 10-point for printed advertisements designed to be individually distributed, including, but not limited to, mailers, flyers, and door hangers. (3) The top of the disclosure area shall include the disclosure required by Sections 84502 and 84503, The text of the disclosure shall be underlined if there are any top contributors. (4) The top contributors, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top contributor who made the largest cumulative contributions on the firstline. The name of each of the top contributors shall be centered horizontally in the disclosure area and shall not beunderlined, The names of the top contributors shall not be printed in a type that is condensed to be narrower than a normal non-condensed Anal equivalent type.
(5) A committee subject to Section 84506.5 shall include the disclosure required by Section 84506.5, which shall beunderlined and on a separate line below any of the top contributors.(6) A committee subject to Section 84223 shall next include the text “Funding Details At [insert Commission Internet Web site],” which shall be underlined and printed on a line separate from any other text. (b) Notwithstanding paragraphs (2) and (4) of subdivision (a), the disclosures required by Sections 84502, 84503, and 84506.5 on a printed advertisement that is larger than those designed to be individually distributed, including, but not limited to, yard signs or billboards, shall be in Anal equivalent type with a total height of at least 5 percent of the height of the advertisement, and printed on a solid background with sufficient contrast that is easily readable by the average viewer. The text may be adjusted so it does not appear on separate horizontal lines, with the top contributors separated by a comma.
(c) Notwithstanding the definition of “top contributors” in paragraph (1) of subdivision (c) of Section 84501, newspaper, magazine, or other public print advertisements that are 20 square inches or less shall be required to disclose only the single top contributor of fifty thousand dollars ($50,000) or more.(Amended by Stats. 2018, Ch. 777, Sec. 5. (AR 2155,) Effective January 1, 2019. Superseded, pursuant to Stats. 2018, Ch. 777, Sec. 8, on date prescribed in Stats. 2018, Ch. 662, Sec. 44. See later operative amendment by Stats. 2019, Ch. 558.) 84504.2. (a) A print advertisement designed to be individually distributed, including, but not limited to, a mailer, flyer, or door hanger, that is 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, shall include the disclosures required by Sections 84502, 84503, and 84506.5, displayed as follows:(1) The disclosure area shall have a solid white background and shall be in a printed or drawn box on the bottom of at least one page that is set apart from any other printed matter. All text in the disclosure area shall be incontrasting color and centered horizontally in the disclosure area. (2) The text shall be in an Anal equivalent type with a type size of at least 10-point.(3) The top of the disclosure area shall include the disclosure required by Sections 84502 and 84503. The text of the disclosure shall be underlined if there are any top contributors. (4) The top contributors, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top contributor who made the largest cumulative contributions on the first line. The name of each of the top contributors shall be centered horizontally in the disclosure area and shall not beunderlined. The names of the top contributors shall not be printed in a type that is condensed to be narrower than a normal non-condensed Anal equivalent type.
(5) An advertisement supporting or opposing a candidate that is paid for by an independent expenditure shall include the disclosure required by Section 84506.5, which shall be underlined and on a separate line below any of the top contributors,
(6) A committee subject to Section 84223 shall next include the text “Funding Details At [insert link to Secretary of State internet website page with top 10 contributor lists],” which shall be underlined and printed on a line separate from any other text at the bottom of the disclosure area. (7) Notwithstanding the definition of “top contributors” in paragraph (1) of subdivision (c) of Section 84501,newspaper magazine, or other public print advertisements that are 20 square inches or less shall be required to disclose only the single top contributor of fifty thousand dollars ($50,000) or more. (b) A print advertisement that is larger than those designed to be individually distributed, including, but not limited to, a yard sign or billboard, 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, shall include the disclosures pursuant to Section 84502, 84503, and 84506.5 in a printed or drawn box with a solid white background on thebottom of the advertisement that is set apart from any other printed matter. Each line of the written disclosures shall be in a contrasting color in Anal equivalent type no less than 5 percent of the height of the advertisement, andshall not be condensed to be narrower than a normal non-condensed Anal equivalent type. The text may be adjusted so it does not appear on separate horizontal lines, with the top contributors separated by a comma. (Amended (as amended by Stats. 2018, Ch. 777, Sec. 5,5) by Stats. 2019, Ch. 558, Sec. 6. (AB 864) Effective January 1, 2020.
Conditionally operative on date prescribed by Stats. 2018, Ch. 662, Sec. 44.) 84504.3. (a) This section applies to an electronic media advertisement ii either of the following is true; (1) The advertisement is 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. (2) The advertisement is paid for by a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, and is either of the following; (A) Paid for by an independent expenditure.(B) An advertisement supporting or opposing a ballot measure. (b) An electronic media advertisement that is a graphic, image, animated graphic, or animated image that the online platform hosting the advertisement allows to link to an internet website paid for by a committee shall complywith both of the following; (1) Include the text “Who funded this ad?,” “Paid for by,” or “Ad Paid for by” in a contrasting color and a font size that is easily readable by the average viewer for the duration of the advertisement. (2) The text shall be included or displayed as a hyperlink, icon, button, or tab to an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5 in a contrasting color and in no less than 8-point font. (c) Notwithstanding subdivision (b), the text required by paragraph (1) of subdivision (b) is not required if including the language in an 8-point font would take up more than one-third of the graphic or image. In those circumstances, the advertisement need only include a hyperlink to an internet website containing the disclosures required bySections 84502, 84503, and 84506.5. (d) Notwithstanding subdivisions (b) and (c), an email message or internet website paid for by a committee shall include the disclosures requited by Sections 84502, 84503, and 84506.5 printed clearly and legibly in a contrasting color and in no less than 8-point font at the top or bottom of the email message, or at the top or bottom of every publicly accessible page of the internet website, as applicable. (e) An internet website that is linked as provided for in paragraph (2) of subdivision (b) shall remain online and available to the public until 30 days after the date of the election in which the candidate or ballot measure supported or opposed by the advertisement was voted upon. (f) An advertisement made via a form of electronic media that is audio only and therefore cannot include either of the disclosures in subdivision (b) shall comply with the disclosure requirements for radio advertisements in Section 84504.(g) An electronic media advertisement that is disseminated as a video shall comply with the disclosurerequirements of Sections 84504.1 and 84504.5, depending on the type of committee that paid for it. If the video islonger than 30 seconds, the disclosures required by Sections 84504.1 and 84504.5 shall be made at the beginning of the advertisement.
(h) (1) An advertisement made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, shall only be required to include the disclosures required by Sections 84502, 84503, and 84506,5 in a contrasting color that is easily readable by the average viewer and in no less than 10-point font on the cover or header photo of the committee’s profile, landing page, or similar location and shall not be required to include the disclosure required by subdivision (b) on each individual post, comment, or other similar communication. The disclosures specified in this subdivision shall be fully visible on the cover or header photo when the profile, landing page, or similar location is viewed from any electronic device that is commonly used to view thisform of electronic media, including, but not limited to, a computer screen, laptop, tablet, or smart phone. (2) Notwithstanding paragraph (1), if making the disclosures specified in paragraph (1) fully visible on a commonlyused electronic device would be impracticable, the cover or header photo of the profile, landing page, or similarlocation need only include a hyperlink, icon, button, or tab to an internet website containing the disclosures specified in paragraph (1).
(i) The disclosures required by this section do not apply to advertisements made via social media for which the only expense or cost of the communication is compensated staff time unless the social media account where the contentis posted was created only for the purpose of advertisements governed by this title.(Amended (as amended by Stats, 2018, Ch. 777, Sec. 6.5) by Stats. 2019, Ch. 558, Sec. 7. (AB 864) Effective January 1, 2020.)
84504.4. (a) A radio or television advertisement that is paid for by a political party or a candidate controlledcommittee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measure and is not paid for by an independent expenditure, shall include the disclosure required by Section84502 subject to the following requirements:(1) In a radio advertisement the words shall be included at the beginning or end of the advertisement and read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement (2) In a television advertisement, the words shall appear in writing for at least four seconds with letters in a type size that is greater than or equal to 4 percent of the height of the screen. fb) An advertisement that is made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, that is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measureand is not paid for by an independent expenditure, shall include the disclosure required by Section 84502 inaccordance with subdivision fh) of Section 84504.3.(Amended by Stats. 2019, Ch. 558, Sec. 8. (AB 864) Effective January 1, 2020.) 84504.5. An advertisement that is an independent expenditure and paid for by a political party or a candidatecontrolled committee established for an elective office of the controlling candidate shall include the disclosures required by Sections 84502 and 84506.5. An advertisement that supports or opposes a ballot measure and is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate shall include the disclosure required by Section 84502 A disclosure that is included in an advertisement pursuant to this section is subject to the following requirements(a) A radio or telephone advertisement shall include the required disclosures at the beginning or end of the advertisement and be read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement, and shall last no less than three seconds. (b) A video advertisement, including television and videos disseminated over the internet, shall include the required disclosures in writing at the beginning or end of the advertisement in a text that is of sufficient size to be readily legible to an average viewer and in a color that has a reasonable degree of contrast with the background of the advertisement for at least four seconds. The required disclosure must also be spoken during the advertisement if the written disclosure appears for less than five seconds of a broadcast of 30 seconds or less or for less than 10seconds of a broadcast that lasts longer than 30 seconds. (c) (1) A print advertisement shall include the required disclosLires in no less than 10-point font and in a color thathas a reasonable degree of contrast with the background of the advertisement. (2) Notwithstanding paragraph (1), each line of the required disclosures on a print advertisement that is larger than those designed to be individually distributed, such as a yard sign or billboard, shall in total constitute no less than 5 percent of the total height of the advertisement and shall appear in a color that has a reasonable degree of contrast with the background of the advertisement.
(d) An electronic media advertisement shall include the disclosures required by Section 84504.3. (Amended by Stats. 2019, Ch. 558, Sec. 9. (‘AB 864) Effective January 1, 2020.)84504.6. (a) For purposes of this article, the following terms have the following meanings:
(1) “Online platform” means a public-facing internet website, web application, or digital application, including a social network, ad network, or search engine, that sells advertisements directly to advertisers, A public-facing internet website, web application, or digital application is not an online platform for purposes of this article to the extent that it displays advertisements that are sold directly to advertisers through another online platform. (2) (A) “Online platform disclosed advertisement” means either of the following:(i) A paid electronic media advertisement on an online platform made via a form of electronic media that allowsusers to engage in discourse and post content, or any other type of social media, for which the committee pays the online platform, unless all advertisements on the platform are video advertisements that can comply with Section84504,1, Individual posts, comments, or other similar communications are not considered online platform disclosed advertisements if they are posted without payment to the online platform. (ii) A paid electronic media advertisement on an online platform that is not any of the following:(I) A graphic, image, animated graphic, or animated image that the online platform hosting the advertisement allows to hyperlink to an internet website containing required disclosures, as described in subdivision (b) of Section $4504.3,(II) Video, acidic, or email.
(B) Electronic media advertisements that are not online platform disclosed advertisements as defined in subparagraph (A) shall follow disclosure requirements for electronic media advertisements under Section $4504.3. (b) A committee that disseminates an online platform disclosed advertisement shall do all of the following:
(1) Upon requesting the dissemination, expressly notify the online platform through which the advertisement wouldbe disseminated, using the online platform’s chosen notification method, that the advertisement is an advertisement as defined in Section 84501.
(2) (A) Provide the online platform with the disclosure name of the committee.(B) For purposes of this section, “disclosure name” means the text required by Section 84503, followed by a colon, followed by, surrounded in quotation marks, the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101 or the name that the filer is required to use on campaign statements pursuant to subdivision (0) of Section 84211. If no disclosure text is required by Section 84503, “disclosure name” means the name of the committee as it appears on the most recent Statement of Organization filed pursuant to Section 84101 or the name that the filer is required to use on campaign statements pursuant tosubdivision to) of Section 84211. (C) If the disclosure name changes due to a change in the top contributors or the name of the committee, the committee shall provide the online platform with an updated disclosure name within five business days. (3) Provide the online platform with the name of the candidate to which the advertisement refers and the office to which the candidate is seeking election, as applicable, or number or letter of the ballot measure and the jurisdictionto which the advertisement refers. (4) Provide the online platform with the name and identification number of the committee that paid for the advertisement.
(c) An online platform that disseminates a committee’s online platform disclosed advertisement shall do one of the following:
(1) Display “Paid for by” or “Ad Paid for by” followed by the disclosure name provided by the committee, easilyreadable to the average viewer, located adjacent to any text stating that the advertisement is an advertisement oris promoted or sponsored. The online platform may display only one hundred or more characters of the disclosurename if it is followed by a “...“ that is clearly clickable and that links to a page as described in paragraph (3).(2) The online platform may instead display a hyperlink, icon, button, or tab with the text “Who funded this ad?,” “Paid for by,” or “Ad Paid for by” that is clearly clickable in the same or similar font and in at least the same fontsize as the online platform’s text, and easily readable to the average viewer, stating that the advertisement is an advertisement or is promoted or sponsored, that links to a page as described in paragraph (3). (3) Hyperlinks, icons, buttons, or tabs used for the purposes described in paragraphs (1) and (2) shall be linked to the profile or landing page of the committee that paid for the advertisement; to another page to which the averageviewer would normally navigate to view additional information about a committee containing the disclosure name ina manner that is easily seen and readable by the average viewer; or to an internet website containing thedisclosure required by subdivision fd) of Section $4504.3. (d) An online platform that disseminates committees’ online platform disclosed advertisements shall meet all of the following requirements:
(1) Maintain, and make available for online public inspection in a machine readable format, a record of any advertisement disseminated on the online platform by a committee that purchased five hundred dollars ($500) or more in advertisements on the online platform during the preceding 12 months. Each record shall contain all of the following:
(A) A digital copy of the advertisement.(B) The approximate number of views generated from the advertisement and the date and time that the advertisement was first displayed and last displayed.
(C) Information regarding the range charged or the total amount spent on the advertisement. (D) The name of the candidate to which the advertisement refers and the office to which the candidate is seeking election, as applicable, or number or letter of the ballot measure and the jurisdiction to which the advertisement refers.(E) The name and identification number of the committee that paid for the advertisement, it the committee is assigned an identification number.
(2) The information required under this subdivision shall be made available as soon as practicable and shall beretained by the online platform for no less than four years.(3) (A) Display a prominent button, icon, tab, or hyperlink with the text “View Ads” or similar text in one of the following locations: (i) near the top of a profile, landing page, or similar location of a committee that paid for an advertisement in a position that the average viewer will readily see it upon viewing that page; (ii) on a page that displays the committee’s profile information or biographical information; (iii) or on a page on which the averageviewer would normally navigate to view additional information about a committee. (B) The button, icon, tab, or hyperlink shall link to a page clearly showing all of the advertisement records required by paragraph (1).
(e) An online platform that creates a mechanism for a committee requesting dissemination of an online platform disclosed advertisement to expressly notify the online platform whether the advertisement is an advertisement asdefined in Section 84501 and to provide all information necessary for the online platform to comply with the requirements of this section may rely in good faith on the information provided by the committee to the onlineplatform to satisfy the online platform’s obligations under subdivisions (c) and (a). (Amended by Stats. 2019, Ch. 558, Sec. 10. (AS 864) Effective 3anuary 1, 2020.) 84504.7. (a) A candidate or committee shall not authorize or pay for an advertisement that is a text message, unless the disclosures described in subdivision (b) are made, if the text message meets one of the following conditions:
(1) The text message supports or opposes a candidate.(2) The text message supports or opposes a ballot measure. (b) (1) A committee, other than a candidate controlled committee established for an elective office of the controlling candidate, subject to subdivision (a) shall include the text “Paid for by” or “With’ followed by either the name of the committee, or a hyperlink or Uniform Resource Locator (URL) for an internet website containing the disclosures required by Sections 84502, 84503, and 84506.5. The text of the disclosures on the internet website shall be in a color that reasonably contrasts with the background on which it appears and in no less than eightpoint font. If the word “With” is used, the individual sending the text shall identify themselves in the following manner: “(Name of individual) with (name of committee or hyperlink or URL).” A disclosure using the word “With”may appear anywhere in the text message, including in conversational content, and need not appear as a separate statement apart from the other content of the message.
(2) A candidate controlled committee established for an elective office of the controlling candidate subject to subdivision (a) shall include the text “Paid for by” or “With” followed by the name of the candidate, followed by theword “For,” and followed by the name of the elective office sought. If the word “With” is used, the individual sending tIje text shall identify themselves in the following manner: “(Name of individual) with (name of candidate) for (name of elective office).” A discloscire using the word “With” may appear anywhere in the text message, including in conversational content, and need not appear as a separate statement apart from the other content of the message.
(3) A committee subject to subdivision (a) that has top contributors, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall comply with the following:
(A) Immediately following the name of the committee or the hyperlink or URL required by paragraph (1), the text message shall also include the text “Top funders:” followed by the names of the top two contributors of fifty thousand dollars ($50,000) or more to the committee paying for the advertisement, separated by “&“ or “and.” (B) The names of the top two contributors may be spelled using acronyms, abbreviations, or other shorthand in common usage or parlance. If a top contributor is an individual, their first and last name shall both be used. (C) Notwithstanding subparagraph (A), if the disclosures required by paragraph (1) and this paragraph would exceed 35 characters, the text message shall disclose only the single top contributor of fifty thousand dollars ($50,000) or more to the committee paying for the advertisement.(D) Notwithstanding subparagraph (A), if the text message includes the name of the committee paying for the advertisement in accordance with paragraph (1), and the committee’s name includes the name of one of the top two contributors of fifty thousand dollars ($50,000) or more to the committee paying for the advertisement, thetext message is not required to include the name of that contributor after the text “Top funders:”. (4) The text required to be included in a text message sent pursuant to this subdivision shall be in a color thatreasonably contrasts with the background on which it appears and in a font size that is readable by the average viewer.
(c) (1) This section does not apply to a text message that is individually sent without the assistance of mass distribution technology, including a text messaging platform. (2) If a committee, other than a political party committee or a candidate controlled committee established for an elected office of the controlling candidate, subject to subdivision (a) that has top contributors uses individuals whoare unpaid volunteers to send text messages with the assistance of mass distribution technology, including a text message platform, the text messages sent by individuals who are unpaid volunteers are not required to disclose the top two contributors pursuant to paragraph (3) of subdivision (b). Text messages sent by unpaid volunteers shall include a disclosure stating that the text message is being sent by a volunteer. For purposes of this paragraph, receiving payments for food, transportation, or lodging in connection with campaign activity shall not disqualify aperson from being classified as an unpaid volunteer.(d) An internet website that is hyperlinked as provided for in this section shall remain online and available to thepublic until 30 days after the date of the election in which the candidate or ballot measure supported or opposed by the advertisement was voted on.
(e) (1) If an exchange consists of a sequence of multiple text messages sent on the same day, a candidate or committee shall be deemed in compliance with this section if the candidate or committee sends the disclosures requited by subdivision (b) with the first text message in the sequence that meets one of the conditions of subdivision (a).
(2) A committee shall be deemed in compliance with this section if the disclosures required by subdivision (b) are included in the text message in the form the committee intended it to be sent, regardless of the form the carrier relayed it to the recipient.(3) If a committee includes a hyperlink or URL in the text message sent pursuant to subdivision (b), the committee shall be deemed to be in compliance with subdivision (b) even if the recipient’s device is incapable of accessing the corresponding Internet website.(Added by Stats. 2019, Ch. 555, Sec. 3. (AB 201) Effective January 1, 2020.)84505. (a) In addition to the requirements of Sections 84502, 84503, and 84506.5, the committee placing theadvertisement 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 topcontributor. (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, or asotherwise required by conventions of the English language. (Amended by Stats. 2017, Ch. 546, Sec. 18. (AS 249) Effective October 7, 2017. Operative January 1, 2018, by Stats. 2017,Ch. 546, Sec. 29. Note: This section was added on Nov. 5, 1996, by initiative Prop. 208.) 84506.5. An advertisement supporting or opposing a candidate that is paid for by an independent expenditure shall include a statement that it was not authorized by a candidate or a committee controlled by a candidate. If the advertisement was authorized or paid for by a candidate for another office, the expenditure shall instead include a statement that “This advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office.”(Amended by Stats. 2017, Ch. 546, Sec. 20. (AB 249) Effective October 7, 2017. Operative January 1, 2018, by Stats. 2017,Ch. 546, Sec. 29.) 84509. If the order of top contributors required to be disclosed pursuant to this article changes or a new contributor qualifies as a top contributor, the disclosure in the advertisement shall be updated as follows:
(a) A television, radio, telephone, electronic billboard, or other electronic media advertisement shall be updated toreflect the new top contributors within five business days. A committee shall be deemed to have complied with this subdivision if the amended advertisement is delivered, containing a request that the advertisement immediately be replaced, to all affected broadcast stations or other locations where the advertisement is placed no later than the fifth business day.
(b) A print media advertisement, including nonelectronic billboards, shall be updated to reflect the new top contributors before placing a new or modified order for additional printing of the advertisement.(Repealed and added by Stats. 2017, CO. 546, Sec. 24. (AB 249) Effective October 7, 2017. Operative January 1, 2018, by Stats. 2017, Ch. 546, Sec. 29.)84510. (a) (1) In addition to the remedies provided for in Chapter 11 (commencing with Section 91000), a person who violates Section 84503 or 84506.5 is liable in a civil or administrative action brought by the Commission or anyperson for a fine up to three times the cost of the advertisement, including placement costs.(2) Notwithstanding paragraph (1), a person who intentionally violates a provision of Sections 84504 to 84504.3,inclusive, or Section 84504.5 or 84504.6, for the purpose of avoiding disclosure is liable in a civil or administrative action brought by the Commission or any person for a fine up to three times the cost of the advertisement,including placement costs. fb) The remedies provided in subdivision (a) shall also apply to any person who purposely causes any other person to violate any of the sections described in paragraph (1) or (2) of subdivision (a) or who aids and abets any other person in a violation.(C) If a judgment is entered against the defendant or defendants in an action brought under this section, theplaintiff shall receive 50 percent of the amount recovered. The remaining 50 percent shall be deposited in the General Fund of the state. In an action brought by a local civil prosecutor, 50 percent shall be deposited in the account of the agency bringing the action and 50 percent shall be paid to the General Fund of the state.(Amended by Stats. 2018, Ch. 754, Sec. 5. (AB 2188) Effective January 1, 2019. Operative January 1, 2020, by Stats, 2018,Ch. 754, Sec. 7. Note: This section was added on Nov. 5, 1996, by initiative Prop. 208.) 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 appearancein 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 appearance in an advertisement that supports or opposes the qualification, passage, or defeat of a ballot measure and that states or suggests that the individual is a member of an occupation that requires licensure, certification, or other specialized, documented training as a prerequisite to engage in that occupation. (b) A committee described in subdivision (a) shall file, within 10 days of the expenditure, a report that includes all of the following:
(1) An identification of the measure that is the subject of the advertisement.(2) The date of the expenditure.(3) The amount of the expenditure. (4) The name of the recipient of the expenditure.(5) For a committee described in paragraph (2) of subdivision (a), the occupation of the recipient of the expenditure.
(c) An advertisement paid for by a committee described in paragraph (1) of subdivision (a) shall include a disclosure statement stating “(spokesperson’s name) is being paid by this campaign or its donors” in highly visible font shown continuously if the advertisement consists of printed or televised material, or spoken in a clearly audibleformat if the advertisement is a radio broadcast or telephonic message. If the advertisement is a television or video advertisement, the statement shall be shown continuously, except when the disclosure statement required by Section 84504.1 is being shown.
(d) (1) An advertisement paid for by a committee described in paragraph (2) of subdivision (a) shall include a disclosure statement stating “Persons portraying members of an occupation in this advertisement are compensated spokespersons not necessarily employed in those occupations” in highly visible font shown continuously if theadvertisement consists of printed or televised material, or spoken in a clearly audible format if the advertisement isa 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 theadvertisement and makes that documentation immediately available to the Commission upon request. (Amended by Stats. 2019, Ch. 55$, Sec. 11. (AB 864) Effective January 1, 2020. Note: Before it was repealed and added by Stats. 2014, ci. 868, this section was added by Stats. 2000, Ch. 102, and approved in Prop. 34 on Nov. 7, 2000.)