BILL ANALYSIS Ó AB 1581 Page 1 ASSEMBLY THIRD READING AB 1581 (Wieckowski) As Amended April 26, 2012 Majority vote BUSINESS & PROFESSIONS 8-0 APPROPRIATIONS 11-5 ----------------------------------------------------------------- |Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Blumenfield, | | |Allen, Butler, Eng, Hill, | |Bradford, Charles | | |Ma, Smyth | |Calderon, Campos, Davis, | | | | |Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Donnelly, Gatto, Nielsen, | | | | |Norby, Wagner | ----------------------------------------------------------------- SUMMARY : Prohibits a floral business from misrepresenting the geographic location of its business, as specified. Specifically, this bill : 1)Prohibits a provider or vendor of floral or ornamental products or services from misrepresenting the geographic location of its business by: a) Listing a local telephone number in any advertisement or listing, unless the advertisement or listing identifies the true physical address, including the city, of the provider's or vendor's business; or, b) Listing a fictitious business name or an assumed business name in any advertisement or listing if: i) The name of the business misrepresents the provider's or vendor's geographic location; and, ii) The advertisement or listing does not identify the true physical address, including the city and state, of the provider's or vendor's business. 2)Specifies that this bill does not create or impose any duty or obligation on a person other than a vendor or provider of AB 1581 Page 2 floral or ornamental products or services, as defined. 3)Exempts from the provisions of this bill: a) A publisher of a telephone directory or other publication or a provider of a directory assistance service publishing or providing information about another business; b) An Internet Web site that aggregates and provides information about other businesses; c) An owner or publisher of a print advertising medium providing information about other businesses; d) An Internet service provider; and, e) An Internet service that displays or distributes advertisements for other businesses. 4)Provides that a violation of these provisions is an infraction, punishable by a fine up to $250. 5)Defines the following terms: a) "Floral or ornamental products or services" to mean floral arrangements, cut flowers, floral bouquets, potted plants, balloons, floral designs, and related products and services; and, b) "Local telephone number" to mean a specific telephone number (area code and prefix) assigned for the purpose of completing local calls between a calling party or station and any other party or station within a designated exchange or all of its designated local calling areas. The term "local telephone number" does not include long distance telephone numbers or any toll-free telephone numbers listed in a local telephone directory. EXISTING LAW provides for the regulation of advertising and makes certain advertising practices unlawful. FISCAL EFFECT : According to the Assembly Appropriations Committee, potential nonreimbursable costs to local government for additional enforcement, offset to some extent by additional AB 1581 Page 3 fine revenues. COMMENTS : According to the author, "At its core, this bill is about combating consumer deception. Local consumers are misled when orders are routed to non-local business locations because fees and commissions are usually taken out of the order price. "These non-local fees and commissions are not normally paid when the consumer places a floral order directly with a truly local florist, as intended. Ironically, oftentimes the non-local telemarketer who falsely represents himself or herself as a local florist simply re-routes the order to a truly local florist for processing. In these cases, the consumer paid a higher price, and received less value, while the local florist was subjected to sharing their profit with an unnecessary and non-local third party. "The consumer has the right to know and choose when he or she wants his floral dollars and sales taxes to leave his or her local community and state. This will provide interested consumers relevant information about the location of a floral retail business and prevent unscrupulous floral retailers from parasitical advertising activities on existing community based local flower shops." Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916) 319-3301 FN: 0003395