Fair Political Practices Commission

Subcommittee on the Political Reform Act & Internet Political Activity

Statement of Purpose

In 2000 the state Legislature passed and Governor Davis signed into law AB 2720 which declared, in part,

“Because political activity on the Internet presents novel and difficult issues, and because questions exist as to the extent that the Internet as a medium should be, or can be, subject to regulation, there exists a need for a study to address the issues presented by political activity on the Internet and on the desirability of state regulation in light of the goals and purposes of the (Political Reform) Act.”ⁱ

AB 2720, authored by Republican Assembly Member Keith Olberg, created the Bipartisan California Commission on Internet Political Activity. That Commission conducted the study called for by AB 2720 and issued its report in December 2003. The Report’s conclusions can be summarized as

• The Internet is an important means of political communication and source of political information that is democratic in nature, i.e., inexpensive and widely available.
• Political activity on the Internet can, however, include “political cyberfraud” and be used to hide from voters the true source of information and political communications.
• It would not be wise or necessary to adopt new laws to limit or regulate the use of the Internet by political actors at the time the Commission issued its report.
• Actions can and should be taken to protect and enhance forms of Internet political participation, enhance the accessibility of campaign finance information and ensure that citizens, nonprofit groups and the private sector can respond to abusive political activity by finding alternative information, often through the internet, and holding responsible campaign actors accountable.

The Report also, urged that the “…legislature and the FPPC to make use of this Report to continue to examine the Internet related areas…” ⁱⁱ

Mindful of this charge, the Fair Political Practices Commission has decided to update the work of the Bipartisan California Commission on Internet Political Activity. In the six years since the release of the Commission’s Report, the scope, pervasiveness, sophistication and influence of the Internet with respect to political activity has grown exponentially. What has not changed is the validity and importance of the basic purposes of the Political Reform Act and the right of Californians to be fully informed of the sources of campaign contributions, expenditures, and political advertising.

Indeed, as traditional campaign media like slate mailers, direct mail flyers and advertisements – all of which are currently required by the Act to include disclosures of their source and financing – are increasingly replaced by email, tweets, websites and YouTube Videos, it is the responsibility of the Fair Political Practices Commission to evaluate and, if necessary and consistent with its statutory authority, adopt appropriate responses to new political realities. The FPPC does not, of course, have authority over the content of political communications nor does it have authority over the actions of individuals or groups, including using the Internet for political purposes, so long as those individuals or groups do not raise or expend sufficient funds to trigger reporting obligations under the Political Reform Act.

Consequently, the FPPC has created a subcommittee comprised of Commissioners Elizabeth Garrett and Timothy A. Hodson with the purpose of providing information to the full commission about the current state of the disclosure of the sources and financing of Internet political activity; whether voters are subject to false or misleading information regarding the source and funding of Internet political activities; the need, if any, to enhance and protect political activity on the Internet; and the need, if any, for legislative or regulatory actions. Specifically, the subcommittee will:

• Describe current federal laws and regulations regarding disclosure of sources and financing of Internet political activity as well as similar actions in other states;
• Solicit information and advice from scholars, legal experts , political activists and practitioners regarding political activity in the Internet, the need, if any, of state action to ensure full disclosure of the sources and financing of paid Internet political communications, and, if state action is necessary and desirable, the nature and shape of such action;
• Solicit information and advice from scholars, legal experts , political activists and practitioners regarding how well the FPPC and other state agencies are making use of the Internet to enhance the public accessibility of campaign finance, lobbyist and other information;
• Assess the authority of the FPPC and other state agencies to take action in this area;
• Evaluate current FPPC regulations , advice letters, etc. pertaining to Internet political activity;
• Assess the current status of the Bipartisan California Commission on Internet Political Activity’s recommendations for regulatory and statutory, including any actions taken in response to those recommendations; and
• Report back to the Fair Political Practices Commission with findings no later than June 2010.

To accomplish these goals the subcommittee will hold at least two public informational hearings, one in Los Angeles and one in Sacramento, in 2010. The Subcommittee will also be assisted by FPPC staff in developing some of this information. The Commission will also establish a website on which testimony and information will posted and through which public comments can be submitted. Budgetary and other constraints preclude the subcommittee from replicating fully the work of the Bipartisan California Commission on Internet Political Activity. Instead, the Subcommittee will provide an update to the FPPC of developments since the Commission’s Report and provide a basis for the FPPC to consider appropriate responses.

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^i. AB 2720, Chapter 975, Stats of 2000
^ii. Report of the Bipartisan California Commission on Internet Political Practices. December 2003, page 6 http://www.fppc.ca.gov/InternetCom/FinalRept01-04.pdf