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        
           
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          |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
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            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 








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          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 


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