Requires entities advertising for political purposes to disclose in such advertisements the source thereof

BILL NUMBER:A10976A

Title of bill

An act to amend the election law, in relation to the disclosure of sources for political advertisements

Purpose or general idea of bill

The purpose of this bill is to ensure that the public is fully informed of the sources of political advertise- ments in support of or in opposition to a candidate, or a ballot proposal or constitutional amendment, in order to prevent the sponsors of such communications from concealing their interests in the outcome by acting through third parties, such as trade associations.

Summary of specific provisions

Section 1: Adds a new election law section Sec. 14107, which defines independent expenditures and those affected by the bill, such as trade associations, and requires that whenever a person or trade association makes an independent expenditure of more than one thousand dollars for a political advertisement or other communication to the general public, the one paying for it must be iden- tified, the communication must state that it is not authorized by the candidate or his or her committee, and. if the sponsor is a trade asso- ciation, it must disclose its three largest donors.

The attorney general will have concurrent jurisdiction with any district attorney I the prosecution of any offenses under this section relating to deceptive practices as well as any offenses arising out of such pros- ecution.

Section 2: Provides that the Act takes effect immediately.

Justification

This bill is a response to the decision of the U.S. Supreme Court in Citizens United v. Federal Election Commission, which effectively eliminated restrictions on corporations' ability to spend corporate treasury funds in support of or in opposition to political candidates, political Parties, and ballot issues. Disclosure of corpo- rate funding of political advertising is viewed by many as at least a partial solution, as it will empower the press to investigate the inter- ests being served by the political advertising, and allow the public to make informed decisions regarding the weight to be given to such adver- tising. Because recent statements by some corporate leaders have indi- cated that they would try to hide their political expenditures by contributing to trade associations that could buy political advertise- ments without disclosing the source of their funding, this bill requires that such trade associations disclose in any such advertisements their three largest contributors.

Prior legislative history

This is new legislation.

Fiscal implications

None.

Effective date

This act would take effect immediately.