BILL NUMBER: AB 2654	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 23, 2010
	PASSED THE ASSEMBLY  AUGUST 24, 2010
	AMENDED IN SENATE  AUGUST 19, 2010
	AMENDED IN SENATE  JUNE 15, 2010

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 19, 2010

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2654, Hill. Solicitations.
   Existing law makes it unlawful for any person, firm, or
corporation, or association that is a nongovernmental entity to
solicit funds or information by means of a mailing, electronic
message, or Internet Web site that contains any 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 and mailing contains a
specified disclosure that it is not a governmental document. Existing
law also requires a business that solicits the purchase of, or
payment for, a service by means of an unsolicited mailing offering to
assist the recipient in dealing with a state or local governmental
agency to disclose on the envelope and in the mailing that the
business is not a governmental agency and is not associated with the
governmental agency rereferenced. A violation of these or other
provisions related to advertising is a misdemeanor, punishable by
imprisonment in the county jail for up to 6 months, a fine of up to
$1,000, or both.
   This bill would also make it unlawful for these solicitations to
contain an emblem or any other content or specified title, trade, or
brand names, that reasonably could be interpreted or construed as
implying any federal, state, or local government connection,
approval, or endorsement and would require the disclosures to be
conspicuously displayed apart from other print in the solicitation
and on the envelope, cover, or wrapper in which the solicitation is
mailed, as specified. The bill would also prohibit that solicitation
from containing certain payment provisions unless a specified
disclosure is additionally included. The bill would authorize a
person to recover specified damages if the person is harmed from a
violation of the provisions regulating the solicitation of funds or
information by a nongovernmental entity. The bill would establish
specified fines and criminal penalties for a violation of these
provisions, and thereby would impose a state-mandated local program.
   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.  (a) 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, emblem, insignia, trade or brand name, or any other term,
symbol, or content that reasonably could be interpreted or construed
as implying the federal, state, or local government connection,
approval, or endorsement, unless the requirements of paragraph (1) or
(2) have been met, as follows:
   (1) The nongovernmental entity has an expressed connection with,
or the approval or endorsement of, a federal, state, or local
government entity, if permitted by other provisions of law.
   (2) The solicitation meets all of the following requirements:
   (A) The solicitation conspicuously displays the following
disclosure on the front and back of every page of the solicitation:
"THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY
GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF
THE GOVERNMENT."
   (B) In the case of a mailed solicitation, the envelope or outside
cover or wrapper in which the matter is mailed conspicuously displays
the following disclosure on the front of the envelope, outside
cover, or wrapper:
"THIS IS NOT A GOVERNMENT DOCUMENT."
   (C) The disclosure in subparagraph (A) shall be displayed
conspicuously, as provided in subdivision (d), and immediately below
each portion of the solicitation that reasonably could be construed
to specify an amount due and payable by the recipient. The disclosure
in subparagraph (B) shall be displayed conspicuously, as provided in
subdivision (d), and immediately below the area of the envelope,
outside cover, or wrapper that is used for a return address. The
disclosures in subparagraphs (A) and (B) shall not be preceded,
followed, or surrounded by terms, symbols, or other content that
result in the disclosures not being conspicuous or that introduce,
modify, qualify, or explain the text of those disclosures.
   (D) The solicitation shall not use a title or trade or brand name
that reasonably could be interpreted or construed as implying any
federal, state, or local government connection, approval, or
endorsement, including, but not limited to, use of the term "agency,"
"administrative," "assessor," "board," "bureau," "collector,"
"commission," "committee," "department," "division," "recorder,"
"unit," "state," "county," "city," or "municipal," or the name of any
government agency or division.
   (E) The solicitation shall not specify a date or time period when
payment to the soliciting nongovernmental person, firm, corporation,
or association is due, including, but not limited to, use of the
terms "due date," "due now," "remit by," "remit immediately,"
"payment due," "pay now," "pay immediately," or "pay no later than,"
unless the solicitation displays, in the same sentence as the date or
time period specified, how the information being solicited will be
used, a description of the product or service that is to be provided,
and to what government agency it shall be rendered, or how the
solicited funds or membership fees will be used, as applicable.
   (F) The solicitation shall not state or imply that payment to any
person, firm, corporation, or association that is not a government
entity is mandatory or required by law, or state or imply that
penalties, fines, or consequences will occur if payment is not made
to the soliciting nongovernmental person, firm, corporation, or
association.
   (b) Notwithstanding Section 17534, any violation of this section
is a misdemeanor punishable by imprisonment in a county jail not
exceeding six months, or by a fine not exceeding two thousand five
hundred dollars ($2,500), or by both that fine and imprisonment.
   (c) Any person who is harmed as a result of a violation of this
section shall be entitled to recover, in addition to any other
available remedies, damages in an amount equal to three times the
amount solicited.
   (d) For purposes of this section, "conspicuous" or "conspicuously"
means displayed apart from other print on the page, envelope,
outside cover, or wrapper and in not less than 12-point boldface font
type in capital letters that is at least 2-point boldface font type
sizes larger than the next largest print on the page, envelope,
outside cover, or wrapper and in contrasting type, layout, font, or
color in a manner that clearly calls attention to the language.
  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.