Senate BillNo. 272


Introduced by Senator Corbett

February 14, 2013


An act to add Section 17533.65 to the Business and Professions Code, relating to advertising.

LEGISLATIVE COUNSEL’S DIGEST

SB 272, as introduced, Corbett. Advertising: military endorsements.

Existing law makes it unlawful for any person, firm, corporation, or association that is a nongovernmental entity to solicit funds or information, or the purchase of goods or services, 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 any federal, state, or local government connection, approval, or endorsement, unless certain criteria are met. A violation of provisions related to advertising is a crime.

This bill would additionally make it unlawful for any person, firm, corporation, or association that is a nongovernmental entity to use any seal, emblem, insignia, trade, or brand name, or any other term, symbol, or content, that reasonably could be interpreted or construed as implying any federal military, state military, military veteran, or military or veteran service organization connection, approval, or endorsement of any financial product, goods, or services, or for purposes of advertising or to promote certain events, as specified, unless the nongovernmental entity has an expressed connection with, or the approval or endorsement of, that entity. The bill would establish specified civil and criminal penalties for a violation of its provisions.

Because a violation of the bill’s provisions would be a crime, the bill 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 17533.65 is added to the Business and
2Professions Code
, to read:

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17533.65.  

(a) It is unlawful for any person, firm, corporation,
4or association that is a nongovernmental entity to use any seal,
5emblem, insignia, trade, or brand name, or any other term, symbol,
6or content that reasonably could be interpreted or construed as
7implying any federal military, state military, military veteran, or
8military or veteran service organization connection, approval, or
9endorsement of any financial product, goods, or services, unless
10the person, firm, corporation, or association has an expressed
11connection with, or the approval or endorsement of, the federal
12military, state military, or military veteran entity, or military or
13veteran service organization.

14(b) A person, firm, corporation, or association that is a
15nongovernmental entity shall not use any seal, emblem, insignia,
16trade, or brand name, or any other term, symbol, or content in any
17advertising or to promote any event, presentation, seminar,
18workshop, or other public gathering that reasonably could be
19interpreted or construed as implying any federal military, state
20military, military veteran, or military or veteran service
21organization connection, approval, or endorsement of any financial
22product, goods, or services, unless the person, firm, corporation,
23or association has an expressed connection with, or the approval
24or endorsement of, the federal military, state military, or military
25veteran entity, or military or veteran service organization.

26(c) Any violation of this section is a misdemeanor punishable
27by imprisonment in a county jail not exceeding six months, or by
28a fine not exceeding two thousand five hundred dollars ($2,500),
29or by both that fine and imprisonment.

P3    1(d) Any person who is harmed as a result of a violation of this
2section shall be entitled to recover, in addition to any other
3available remedies, damages in an amount equal to three times the
4amount solicited.

5(e) For purposes of this section, “state military” has the same
6meaning set forth in Section 120 of the Military and Veterans
7Code, and includes the National Guard, State Military Reserve,
8and the Naval Militia.

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SEC. 2.  

No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district will be incurred because this act creates a new crime or
13infraction, eliminates a crime or infraction, or changes the penalty
14for a crime or infraction, within the meaning of Section 17556 of
15the Government Code, or changes the definition of a crime within
16the meaning of Section 6 of Article XIII B of the California
17Constitution.



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