BILL ANALYSIS Ó
SB 550
Page 1
SENATE THIRD READING
SB 550 (Padilla)
As Amended August 23, 2011
Majority vote
SENATE VOTE :33-6
BUSINESS & PROFESSIONS 8-0PUBLIC SAFETY 7-0
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|Ayes:|Hayashi, Allen, Butler, |Ayes:|Ammiano, Knight, Cedillo, |
| |Eng, Hagman, Hill, Ma, | |Hagman, Hill, Mitchell, |
| |Smyth | |Skinner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 14-3
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|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Gatto, Hall, Hill, | | |
| |Lara, Mitchell, Norby, | | |
| |Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Donnelly, Nielsen, Wagner | | |
| | | | |
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SUMMARY : Authorizes law enforcement officials to inspect
commercial optical disc manufacturing facilities to ensure
compliance with existing laws requiring certain identifying
marks on each disc, and increases the fines for individuals who
violate provisions regulating manufactured optical discs.
Specifically, this bill :
1)Prohibits manufacturers of optical discs for commercial
purposes from:
a) Possessing, owning, controlling, or operating
manufacturing equipment or any optical disc mold unless it
has been adapted to apply the appropriate identification
mark or unique identifying code, as specified; or,
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b) Making, possessing, or adapting any optical disc mold
for the purpose of applying to an optical disc a forged or
false identification mark or identifying code, or any mark
so similar to a manufacturer's identification mark or
identifying code as to be likely to deceive.
2)Provides that any manufacturing equipment, optical disc mold,
or production part found on the premises of a commercial
manufacturer shall be deemed to be in the possession of the
manufacturer.
3)Authorizes law enforcement officers to perform inspections at
commercial optical disc manufacturing facilities to verify
compliance, as specified.
4)Specifies that any inspection shall be conducted by officers
whose primary responsibilities include investigation of
high-technology crime or intellectual property piracy, during
regular business hours, and limited to the areas of the
premises where manufacturing equipment is located and where
optical discs and production parts are manufactured and
stored.
5)Limits the scope of the inspection to the physical review of
items and collection of information necessary to verify
compliance, as specified.
6)Authorizes officers performing inspections to do so without
providing prior notice or obtaining a warrant, and to:
a) Take an inventory of all manufacturing equipment,
including the identification mark or unique identifying
code that any piece of equipment has been modified to
apply;
b) Review any optical disc, manufacturing equipment,
optical disc mold, or production part;
c) Review any record, book, or document, as specified, kept
in any format, electronic or otherwise, relating to the
business concerned;
d) Inspect, remove, and detain for the purpose of
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examination for as long as reasonably necessary any optical
disc, production part, or record, book, or document, as
specified;
e) Seize any optical disc or production part manufactured
in violation of this bill; and,
f) Obtain and remove four samples each of the optical discs
molded by each mold that has been used or could be used to
manufacture optical discs.
7)Prohibits individuals from evading, obstructing, or refusing
any inspection requested or being carried out by a law
enforcement officer to determine compliance with this bill.
8)Requires the manufacturer, and the employees, servants, or
agents of the manufacturer, to cooperate during the course of
the inspection by promptly:
a) Providing and explaining any record, book, or document,
as specified;
b) Pointing out and providing access to all optical discs,
manufacturing equipment, optical disc molds, and production
parts and demonstrating to the satisfaction of the officer
that they include or have been adapted to apply the
required identification mark or unique identifying code;
and,
c) Providing and permanently surrendering four samples each
of the optical discs molded by each mold that has been used
or could be used to manufacture optical discs.
9)Increases the fine for failing to properly mark an optical
disc manufactured for commercial purposes to a maximum of
$25,000 for a first offense and a maximum of $250,000 for a
subsequent offense.
10)Requires individuals who manufacture optical discs for
commercial purposes to keep full and accurate records,
including specified information, of their manufacturing
equipment, and make them available to law enforcement for
inspection pursuant to this bill.
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11)Requires individuals who manufacture optical discs for
commercial purposes to keep all of the following, for no less
than five years from the date of production:
a) One sample of each optical disc title manufactured by
it;
b) One copy in a retrievable form of the content of each
production part manufactured by it; and,
c) The name and physical address of the customer, or if the
order was placed by an intermediary, the name and physical
address of the actual customer who originated the order.
EXISTING LAW :
1)Requires individuals who manufacture an optical disc, as
defined, for commercial purposes to permanently mark the
manufactured optical disc with an identification mark or a
unique identifying code, as specified.
2)Provides that a manufacturer that violates these provisions is
guilty of a misdemeanor and subject to a fine between $500 and
$5,000 for a first offense and between $5,000 and $50,000 for
a subsequent offense.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential minor nonreimbursable costs to counties for
prosecution and incarceration related to violations of the
bill's provisions, offset to some extent by fine revenues.
COMMENTS : According to the author, "The crime of illegal mass
reproduction of music and movies is a serious problem in
California. Last year alone, more than 820,000 illegal discs
were seized by law enforcement authorities in California.
"Music and movie piracy undermines the California economy and
deprives artists, record labels, and production companies of
hard earned revenue, resulting in job loss in California and
across the nation. Legitimate music and movie retailers cannot
compete with pirates who fail to pay for the discs and fail to
pay local, state, and federal taxes.
"Allowing for inspections of plant manufacturing equipment and
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the collection of sample discs would allow state authorities to
verify compliance with existing regulations. These safeguards
would advance the state's interest in creating a level playing
field amongst disc manufacturers and retailers and protect
California's global leadership in the entertainment industry."
The passage of AB 2633 (Murray), Chapter 712, Statutes of 1998,
made California the first state to require optical disc
manufacturers to permanently mark their discs with identifying
information. The effort was intended to prevent the loss of
revenue due to pirated material by curtailing illegal activity
associated with the production, distribution, sale and
possession of counterfeit optical disks. AB 2633 (Murray)
required disk manufacturers to permanently mark each disc with
the name of the manufacturer and the state that the disc was
manufactured in.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301 FN:
0001924