BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1956
                                                                  Page  1

          Date of Hearing:   April 16, 2002

                           ASSEMBLY COMMITTEE ON JUDICIARY
                               Ellen M. Corbett, Chair
                    AB 1956 (Vargas) - As Amended:  April 4, 2002
           
          SUBJECT  :  VIDEO ARCADE FACILITIES:  POSTING REQUIREMENTS 

           KEY ISSUE  :  SHOULD VIDEO ARCADE FACILITIES BE REQUIRED TO POST A  
          SIGN WARNING OF THE POTENTIAL HARMFUL EFFECTS ON CHILDREN OF  
          EXTENSIVE EXPOSURE TO VIOLENT VIDEO GAMES AND ENCOURAGING THE  
          USE OF A RATING SYSTEM WHEN SELECTING A GAME?

                                      SYNOPSIS
          
          This bill seeks to educate parents and other patrons of video  
          arcades through the use of a sign warning of the potential  
          harmful effects of extensive exposure to violent video arcade  
          games and encouraging the use of a game rating system created by  
          the video arcade gaming industry.  The measure also requires an  
          arcade facility to make available to consumers a brochure that  
          explains the rating system.  

          The bill's author argues that the measure is necessary because  
          the industry-created rating system is neither widely known nor  
          effective since minors have access, without adult supervision,  
          "to the most graphic of video games."  The analysis cites a  
          policy statement on media violence by the American Academy of  
          Pediatrics in which the organization stated that "repeated  
          exposure to violent behavioral scripts can lead to increased  
          feelings of hostility, expectations that others will behave  
          aggressively, desensitization to the pain of others, and  
          increased likelihood of interacting and responding to others  
          with violence."

          Opponents, on the other hand, assert that the measure is  
          constitutionally infirm, arguing that governmental attempts to  
          compel speech impermissibly interfere with free expression.   
          They also take issue with the bill's statement that "due to the  
          graphic display of virtual violence, extensive exposure to video  
          arcade games may be psychologically harmful to children,"  
          arguing that the research does not support this statement. 
           
           SUMMARY  :   Seeks to educate parents and other patrons of video  
          arcade facilities through the use of signs and brochures.   








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          Specifically,  this bill  :  

          1)Requires a video arcade facility to post a sign that warns  
            consumers that due to the graphic display of virtual violence,  
            extensive exposure to video arcade games may be  
            psychologically harmful to children.

          2)Provides that the sign shall also encourage the use of a video  
            arcade game rating system, created by the video arcade gaming  
            industry, when selecting a game and requires that the sign be  
            posted on the wall of the facility in a prominent area and be  
            in specified type. 

          3)Requires a video arcade facility to make a brochure available  
            to consumers that explains the rating system described above  
            and requires that the brochures be located in a prominent area  
            of the arcade.

          4)Provides that a failure to comply with the requirements of the  
            bill is a misdemeanor, punishable by a fine in the amount of  
            one hundred fifty dollars ($150) and provides that each day a  
            violation continues constitutes a separate offense under this  
            section.

           EXISTING LAW  :  

          1)Provides, under the United States and California  
            Constitutions, that a law may not restrain or abridge the  
            freedom of speech.  (U.S. Const. Amendment I, Calif. Const.  
            Art. I, Sec. 2.)

          2)Provides that speech is obscene and may be regulated when:

             a)   The average person, applying contemporary community  
               standards, would find that the work, taken as a whole,  
               appeals to the prurient interest;

             b)   The work depicts or describes, in a patently offensive  
               way, sexual conduct defined by the applicable state law;  
               and

             c)   The work, taken as a whole, lacks serious literary,  
               artistic, political or scientific value. (  Miller v.  
               California  (1973) 413 U.S. 15.)









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          3)Provides that material considered obscene as to minors, but  
            not as to adults, may be regulated.  (  Ginsberg v. New York   
            (1968) 390 U.S. 629.)

           FISCAL EFFECT :   The bill as currently in print is keyed fiscal.  


           COMMENTS  :  In support of the measure, the author states: 

               Advancements in technology and graphics have allowed  
               the introduction of life-like depictions of extreme  
               violence in publicly accessible coin-operated video  
               games.

               A rating system has been created by the video  
               industry, but it is neither widely known nor effective  
               as minors have unfettered access, without adult  
               supervision, to the most graphic of video games.   
               While signage and brochures are available from the  
               American Amusement Machine Association, these  
               materials do not include a warning that parental  
               discretion is advised when selecting a video arcade  
               game nor do they state that prolonged use of these  
               machines may cause psychological harm to children.

               The Coin-Operated Video Game Parental Advisory System  
               was created to allow consumers to ascertain the  
               content of coin-operated video games.  It uses a  
               color-coded, "traffic light" system.  Despite the  
               creation of this rating system, not every machine  
               carries a label of its rated content in a visible  
               area.

           AB 40 (Vargas) of 2001 compared.   This bill seeks to address  
          similar issues raised in AB 40 (Vargas).  That bill, however,  
          focused on minors' unsupervised access to graphically violent  
          and sexually explicit games in amusement arcades.  AB 40 was  
          approved by this Committee by a vote of 8-0, but was held in the  
          Assembly Appropriations Committee.  Critics of the bill raised  
          concerns that it was a constitutionally impermissible limit on  
          minors' access to amusement machines because it required that  
          each game display the appropriate rating assigned to it by the  
          arcade industry's game rating system and required that those  
          games that had been deemed to contain graphic violence or  
          sexually explicit content be located in a separate area to which  








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          minors' access was restricted.  

          In opposing AB 40, opponents noted that an Indianapolis  
          ordinance, which was substantially similar to the bill, was  
          enacted in 2000 and never put into effect because of subsequent  
          legal challenges.  In ruling for the plaintiffs, members of the  
          arcade industry, the 7th Circuit Court of Appeals stated that  
          the plaintiffs were entitled to a preliminary injunction because  
          they had shown a strong likelihood of ultimate victory.   
          According to the opponents of this bill, on December 31, 2001,  
          the U.S. District Court entered a Consent Judgment and Permanent  
          Injunction, ending the case. 
           
          This year, the author has revised his bill and decided to take a  
          different approach to address minors' exposure to violent video  
          games.  This bill seeks to educate parents and other patrons of  
          video arcades through the use of a sign warning of the potential  
          harmful effects of extensive exposure to violent video arcade  
          games and encouraging the use of the rating system created by  
          the video arcade gaming industry.  Opponents, however, still  
          maintain that this bill is unconstitutional as impermissibly  
          compelled speech.  Given that the bill is a significant  
          departure from the approach taken in AB 40, which was modeled on  
          the Indianapolis ordinance found to be invalid, the issue of  
          whether this particular bill is also invalid is untested in the  
          courts.

           The Coin-Operated Video Game Parental Advisory System.  Under  
          the bill, video arcade facilities must display a sign that  
          encourages the use of a video arcade game rating system, created  
          by the video arcade gaming industry, when selecting a game.  In  
          addition, the facility must make a brochure available to  
          consumers that explains the rating system.  
           
          According to a brochure on the rating system distributed by the  
          video game industry, the system uses "a color-coded traffic  
          light approach [to] alert players at all times to the game's  
          content."  The system is self-regulating, and parents and others  
          are encouraged to notify the coin industry when they see a game  
          that is missing a parental advisory disclosure message.   
          According to the brochure, the color-coded rating is assigned to  
          the game by the manufacturer and "every new coin-op game has a  
          disclosure message in the artwork of the game's 'header.'  Older  
          games have been stickered with the appropriate disclosure  
          message."








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           ARGUMENTS IN SUPPORT  :  In November 2001, the American Academy of  
          Pediatrics issued a policy statement on media violence, stating:

               Experimental studies have shown that after playing  
               video games, young people exhibit measurable decreases  
               in pro-social and helping behaviors and increases in  
               aggressive thoughts and violent retaliation to  
               provocation.  Playing violent video games has been  
               found to account for a 13% to 22% increase in  
               adolescents' violent behavior ?

               Children learn by observing and trying out "behavioral  
               scripts."  Repeated exposure to violent behavioral  
               scripts can lead to increased feelings of hostility,  
               expectations that others will behave aggressively,  
               desensitization to the pain of others, and increased  
               likelihood of interacting and responding to others  
               with violence.  Active participation increases  
               effective learning.  

               Video games are an ideal environment in which to learn  
               violence.  They place the player in the role of the  
               aggressor and reward him or her for successful violent  
               behavior.  Rather than observing part of a violent  
               interaction, video games allow the player to rehearse  
               an entire behavioral script, from provocation, to  
               choosing to respond violently, to resolution of the  
               conflict.  Moreover, video games have been found to be  
               addictive; children and adolescents want to play them  
               for long periods of time to improve their scores and  
               advance to higher levels.  Repetition increases their  
               effect.  (citations omitted.)

          In support of the measure, the author cites studies that have  
          shown that the viewing of violence by children has lead to more  
          aggressive behavior, noting:

               On July 26, 2000, a joint statement was issued at the  
               Congressional Public Health Summit on the Impact of  
               Entertainment Violence on Children.  It included the  
               following excerpt: 

               "At this time, well over 1,000 studies - including  
               reports from the Surgeon General's office, the National  








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               Institute of Mental Health, and numerous studies  
               conduced by leading figures within our medical and  
               public health organizations-our own members-point  
               overwhelmingly to a causal connection between media  
               violence and aggressive behavior in some children.  Its  
               effects are measurable and long-lasting.  Moreover,  
               prolonged viewing of media violence can lead to  
               emotional desensitization toward violence in real  
               life."

               The statement was signed by leading members of the  
               following organizations:  American Medical  
               Association, President, American Academy of  
               Pediatrics, American Academy of Family Physicians,  
               President, America Academy of Child & Adolescent  
               Psychiatry, American Psychological Association, and  
               American Psychiatric Association

          In addition, the Federal Trade Commission issued a study in  
          September of 2000 that examined the marketing of violent  
          entertainment to children.  In its Executive Summary, the  
          Commission stated:

               The Commission's literature review reveals that a  
               majority of the investigations into the impact of  
               media violence on children find that there is a high  
               correlation between exposure to media violence and  
               aggressive, and at times, violent, behavior.  In  
               addition a number of research efforts report that  
               exposure to media violence is correlated with  
               increased acceptance of violent behavior in others, as  
               well as an exaggerated perception of the amount of  
               violence in society. 

           ARGUMENTS IN OPPOSITION  :  The Media Coalition, Inc. opposes this  
          measure, writing:

               The primary constitutional infirmity is that the  
               posting requirement is clearly compelled speech.  The  
               government cannot mandate that arcade owners take up  
               the state endorsed position on the impact of arcade  
               games on non-adult users.  The First Amendment allows  
               speakers not only the right to communicate freely but  
               creates the complimentary right "to refrain from  
               speaking at all," Wooley v. Maynard, 430 U.S. 705, 714  








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               (1977). ? 

               Arcade owners will inevitably lose patrons who, without  
               being aware that the material referenced by the posted  
               signs is protected by the First Amendment, will refuse  
               to enter places or access games that have been deemed  
               potentially harmful.  Many retailers will refuse to  
               have arcade games that could be construed as violent  
               and allegedly harmful.  As a result, A.B. 1956 would  
               cause an unconstitutional "chilling effect" on the  
               availability of constitutionally protected material and  
               would inevitably prevent minors from using games they  
               have a First Amendment right to access.

               Finally, we challenge the claim that "due to the  
               graphic display of virtual violence, extensive  
               exposure to video arcade games may be psychologically  
               harmful to children."  While many newspaper headlines  
               may have jumped to this conclusion, the research  
               certainly does not support this statement.  There is  
               very little research on the impact of violence in  
               video games and no research the effect of violent  
               content in video arcade games.  We recently released a  
               report, Shooting the Messenger: Why Censorship Won't  
               Stop Violence that surveys the research on the effects  
               of violent media on the consumer.  We found that the  
               research is contradictory and inconclusive.

          The Interactive Digital Software Association (IDSA) and its  
          California-based member companies oppose the measure, arguing  
          that it "would not survive judicial scrutiny" because  
          "governmental attempts to compel speech would impermissibly  
          interfere with free expression."

          The American Amusement Machine Association and Amusement and  
          Music Operators Association oppose the measure, writing:

               The legislation seeks to stigmatize video games based  
               on their message.  "Violent" speech enjoys the full  
               protection of the First Amendment.  Violent, and even  
               "graphically violent" speech has never been included  
               under any judicial definition of obscenity, a  
               definition that has consistently been limited to  
               material of a sexual nature.  (citations omitted.) 









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               In light of the above precedent, we believe that  
               Assembly Bill 1956 would not survive a constitutional  
               challenge.  As a preliminary matter, there is a strong  
               possibility that enforcement of the proposed  
               legislation would be enjoined pending resolution of any  
               lawsuit challenging the legislation.  Expending the  
               resources of taxpayers of California to enact and  
               defend legislation of questionable legal validity would  
               be financially costly and, most importantly, would do  
               nothing to address the real causes of youth violence.   
               Moreover, passage of this legislation would impose  
               burdensome regulations on entertainment establishments  
               ranging from family entertainment centers and amusement  
               parks, to restaurants and movie theaters, that would be  
               detrimental to these types of businesses, and which  
               could lead to a loss of jobs and tax revenue in the  
               State of California as a whole.

           Double referral.   This bill has been double referred by the  
          Assembly Rules Committee to the Assembly Committee on Arts,  
          Entertainment, Sports, Tourism, and Internet Media. 
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          American Amusement Machine Association
          Amusement and Music Operators Association
          Interactive Digital Software Association
          Media Coalition, Inc. 
          Motion Picture Association of America, Inc. 
           
          Analysis Prepared by  :    Saskia Kim / JUD. / (916) 319-2334