BILL NUMBER: SB 1240	CHAPTERED  09/03/02

	CHAPTER  319
	FILED WITH SECRETARY OF STATE  SEPTEMBER 3, 2002
	APPROVED BY GOVERNOR  AUGUST 30, 2002
	PASSED THE ASSEMBLY  AUGUST 15, 2002
	PASSED THE SENATE  MAY 8, 2002

INTRODUCED BY   Senator Figueroa

                        JANUARY 7, 2002

   An act to amend Section 17533.6 of the Business and Professions
Code, relating to advertising.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1240, Figueroa.  Advertising.
   (1) Existing law makes it unlawful for any person, firm,
corporation, or association that is a nongovernmental entity to
solicit funds or information by means of a mailing that contains a
seal, insignia, trade or brand name, or any other term or symbol that
reasonably could be interpreted or construed as implying any state
or local government connection, approval, or endorsement, unless the
nongovernmental entity has an expressed connection with a state or
local entity or unless the solicitation contains a specified
disclosure.  A violation of these or other related provisions is a
misdemeanor.
   This bill would extend the application of these provisions to
solicitations made by nongovernmental entities by electronic message
or over an Internet Web site.  Because this bill would revise the
definition of a crime, it would thereby impose a state-mandated local
program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17533.6 of the Business and Professions Code is
amended to read:
   17533.6.  It is unlawful for any person, firm, corporation, or
association that is a nongovernmental entity to solicit information,
or to solicit the purchase of or payment for a product or service, or
to solicit the contribution of funds or membership fees, by means of
a mailing, electronic message, or Internet Web site that contains a
seal, insignia, trade or brand name, or any other term or symbol that
reasonably could be interpreted or construed as implying any state
or local government connection, approval, or endorsement, unless the
requirements of subdivision (a) or (b) have been met, as follows:
   (a) The nongovernmental entity has an expressed connection with,
or the approval or endorsement of, a state or local government
entity, if permitted by other provisions of law.
   (b) The solicitation meets both of the following requirements:
   (1) The solicitation bears on its face, in conspicuous and legible
type in contrast by typography, layout, or color with other type on
its face, the following notice:  "THIS PRODUCT OR SERVICE HAS NOT
BEEN APPROVED OR ENDORSED BY ANY GOVERNMENT AGENCY, AND THIS OFFER IS
NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT."
   (2) In the case of a mailed solicitation, the envelope or outside
cover or wrapper in which the matter is mailed bears on its face in
capital letters and in conspicuous and legible type, the following
notice:  "THIS IS NOT A GOVERNMENT DOCUMENT."
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.