BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 830
                                                                  Page  1


          SENATE THIRD READING
          SB 830 (Wright)
          As Amended  August 2, 2010
          Majority vote 

           SENATE VOTE  :36-0  
           
           PUBLIC SAFETY       7-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Ammiano, Hagman, Beall,   |Ayes:|Fuentes, Conway,          |
          |     |Gilmore, Hill,            |     |Bradford,                 |
          |     |Portantino, Skinner       |     |Huffman, Coto, Davis, De  |
          |     |                          |     |Leon, Gatto, Hall,        |
          |     |                          |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Expands the definition of a "recording" for the  
          purposes of prosecution for failing to disclose the origin of a  
          recording when utilizing the recording for financial gain, as  
          specified.  Specifies that "recordings" shall include memory  
          cards, flash drives, hard-drives, or data storage devices.    

           EXISTING LAW  :

          1)States that a person is guilty of failure to disclose the  
            origin of a recording or audiovisual work if, for commercial  
            advantage or private financial gain, he or she knowingly  
            advertises or offers for sale or resale, or sells or resells,  
            or causes the rental, sale or resale, or rents, or  
            manufactures, or possesses for these purposes, any recording  
            or audiovisual work, the cover, box, jacket, or label of which  
            does not clearly and conspicuously disclose the actual true  
            name and address of the manufacturer thereof and the name of  
            the actual author, artist, performer, producer, programmer, or  
            group thereon.  This section does not require the original  
            manufacturer or authorized licensees of software producers to  
            disclose the contributing authors or programmers.  

          2)Defines "recording" as any tangible medium upon which  
            information or sounds are recorded or otherwise stored,  








                                                                  SB 830
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            including any phonograph record, disc, tape, audio cassette,  
            wire, film, or other medium on which information or sounds are  
            recorded or otherwise stored, but does not include sounds  
            accompanying a motion picture or other audiovisual work.  

          3)Defines "audiovisual works" as the physical embodiment of  
            works that consist of related images that are intrinsically  
            intended to be shown using machines or devices such as  
            projectors, viewers, or electronic equipment, together with  
            accompanying sounds, if any, regardless of the nature of the  
            material objects such as films or tapes on which the works are  
            embodied.  Specifies disks, memory cards, flash drives, hard  
            drives, data storage devices, or other devices as examples of  
            material objects on which works may be stored.

          4)States that any person who has been convicted piracy as  
            specified shall be punished as follows:  

             a)   If the offense involves the advertisement, offer for  
               sale or resale, sale, rental, manufacture, or possession  
               for these purposes, of at least 100 articles of audio  
               recordings or 100 articles of audiovisual works, as  
               specified, the person shall be punished by imprisonment in  
               a county jail not to exceed one year, or by imprisonment in  
               the state prison for two, three, or five years, or by a  
               fine not to exceed $250,000, or by both; and,  

             b)   Any other violation not described immediately above,  
               shall, upon a first offense, be punished by imprisonment in  
               a county jail not to exceed one year, or by a fine not to  
               exceed $25,000, or by both.  A second or subsequent  
               conviction shall be punished by imprisonment in a county  
               jail not to exceed one year or in the state prison, or by a  
               fine not to exceed $100,000, or by both.  

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee:

          1)Unknown General Fund costs, potentially in excess of $150,000,  
            for additional state prison commitments.  In 2009, 33 persons  
            were committed to state prison under the section this bill  
            would expand.  If the proposed expansion or clarification in  
            this bill results in three additional three-year, mid-term  
            commitments at current per capita costs, the annual cost would  








                                                                  SB 830
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            be about $175,000.

          2)Unknown, non-reimbursable local incarceration costs, offset to  
            a degree by increased fine revenue.

           COMMENTS  :   According to the author, "SB 830 will clarify  
          existing piracy laws by expanding the term 'recording' to  
          include all newer forms of storage media.  California has a  
          serious problem with intellectual property piracy.   Nearly  
          one-half billion dollars in revenue were lost by the state and  
          local governments due to counterfeited goods, including music  
          and movies.  The state's existing statute to protect against  
          music piracy has not kept pace with latest downloading  
          technologies such as memory cards, flash drives, and data  
          storage devices.  SB 830 is intended to plug this loophole in  
          the law.  SB 830 is supported by the Recording Industry  
          Association of America.  The bill has no opposition."

          Please see the policy committee for a full discussion of this  
          bill.
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916)  
          319-3744 


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