BILL NUMBER: SB 272	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 8, 2013

INTRODUCED BY   Senator Corbett

                        FEBRUARY 14, 2013

   An act to  add Section 17533.65 to   amend
Section 17533.6 of  the Business and Professions Code, relating
to  advertising.   business. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 272, as amended, Corbett. Advertising  and solicitations
 :  government and  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,   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   this provision 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. 
 revise and recast that provision and would 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, state, or
local government, military veteran entity, or military or veteran
service organization connection, approval, or   endorsement
of any product or service, including, but not limited to, any
financial product, goods, or services, by any means, including, but
not limited to, a mailing, electronic message, Internet Web site,
periodical, or television commercial.  
   This bill would authorize any person, firm, corporation, or
association that is a nongovernmental entity to advertise or promote
any event, presentation, seminar, workshop, or other public gathering
using a seal, emblem, insignia, trade or brand name, or any other
term, symbol, or content, if the person, firm, corporation, or
association that is a nongovernmental entity has an expressed
connection with, or the approval or endorsement of, a federal, state,
or local government, military veteran entity, or military or veteran
service organization. The bill would authorize any person, firm,
corporation, or association that is a nongovernmental entity to
solicit information, solicit the purchase of or payment for a product
or service, or solicit the contribution of funds or membership fees,
by any means, including, but not limited to, a mailing, electronic
message, Internet Web site, periodical, or television commercial
disseminated in this state, using a seal, emblem, insignia, trade or
brand name, or any other term, symbol, or content, if the person,
firm, corporation, or association that is a nongovernmental entity
meets certain requirements.  
   Because a violation of the bill's provisions would be a crime,

    By changing the definition of a crime and creating new
crimes,  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:

   SECTION 1.    Section 17533.6 of the  
Business and Professions Code   is amended to read: 
   17533.6.  (a)  It   Except as described in
subdivisions (b) and (c), it  is unlawful for any person, firm,
corporation, or association that is a nongovernmental entity 
to solicit information, or to solicit the purchase of or payment for
a product or service, or to solicit the contribution of funds or
membership fees, by means of a mailing, electronic message, or
Internet Web site that contains   to use  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  , military veteran
entity, or military or veteran service organization  connection,
approval, or endorsement  , unless the requirements of
paragraph (1) or (2) have been met, as follows:   of any
product or service, inclu   ding, but not limited to, any
financial product, goods, or services, by any means, including, but
not limited to, a mailing, electronic message, Internet Web site,
periodical, or television commercial disseminated in this state.
 
   (b) Notwithstanding subdivision (a) and if permitted by other
provisions of law, any person, firm, corporation, or association that
is a nongovernmental entity may advertise or promote any event,
presentation, seminar, workshop, or other public gathering using a
seal, emblem, insignia, trade or brand name, or any other term,
symbol, or content as described in subdivision (a), if the person,
firm, corporation, or association that is a nongovernmental entity
has an expressed connection with, or the approval or endorsement of,
a federal, state, or local government, military veteran entity, or
military or veteran service organization.  
   (c) Notwithstanding subdivision (a), any person, firm,
corporation, or association that is a nongovernmental entity may
solicit information, solicit the purchase of or payment for a product
or service, or solicit the contribution of funds or membership fees,
by any means, including, but not limited to, a mailing, electronic
message, Internet Web site, periodical, or television commercial
disseminated in this state, using a seal, emblem, insignia, trade or
brand name, or any other term, symbol, or content as described in
subdivision (a), if the person, firm, corporation, or association
that is a nongovernmental entity meets the requirements of paragraph
(1) or (2) as follows: 
   (1) The nongovernmental entity has an expressed connection with,
or the approval or endorsement of, a federal, state, or local
government entity, if permitted by other provisions of law.
   (2) The solicitation meets all of the following requirements:
   (A) The solicitation conspicuously displays the following
disclosure on the front and back of every page of the solicitation:

"THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY
GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF
THE GOVERNMENT."

   (B) In the case of a mailed solicitation, the front of the
envelope, outside cover, or wrapper in which the matter is mailed
conspicuously displays the following disclosure:

"THIS IS NOT A GOVERNMENT DOCUMENT."

   (C) If permitted by other provisions of law, in the case of a
television commercial disseminated in this state, the solicitation
conspicuously displays the following disclosure at the top of the
television screen for the entire duration of the television
commercial:  
   "THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY
GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF
THE GOVERNMENT." 

   (C) 
    (D)  The disclosure in subparagraph (A) shall be
displayed conspicuously, as provided in subdivision  (d)
  (f)  , and immediately below each portion of the
solicitation that reasonably could be construed to specify an amount
due and payable by the recipient. The disclosure in subparagraph (B)
shall be displayed conspicuously, as provided in subdivision 
(d)   (f)  , and immediately below the area of the
envelope, outside cover, or wrapper that is used for a return
address.  The disclosure in subparagraph (C) shall be displayed
conspicuously, as provided in subdivision (f), and at the top of the
television screen.  The disclosures in subparagraphs 
(A) and   (A),  (B)  , and (C)  shall not
be preceded, followed, or surrounded by symbols, terms, or other
content that result in the disclosures not being conspicuous or that
introduce, modify, qualify, or explain the text of those disclosures.

   (D) 
    (E)  The solicitation does not use a title or trade or
brand name that reasonably could be interpreted or construed as
implying any federal, state, or local government connection,
approval, or endorsement, including, but not limited to, use of the
term "agency," "administrative," "assessor," "board," "bureau,"
"collector," "commission," "committee," "department," "division,"
"recorder," "unit," "federal," "state," "county," "city," or
"municipal," or the name or division of any government agency.

   (E) 
    (F)  The solicitation does not specify a date or time
period when payment to the soliciting nongovernmental person, firm,
corporation, or association is due, including, but not limited to,
use of the terms "due date," "due now," "remit by," "remit
immediately," "payment due," "pay now," "pay immediately," or "pay no
later than," unless the solicitation displays, in the same sentence
as the date or time period specified, how the information being
solicited will be used, a description of the product or service that
is to be provided and to what government agency it shall be rendered,
or how the solicited funds or membership fees will be used, as
applicable. 
   (F) 
    (G)  The solicitation does not state or imply that
payment to any person, firm, corporation, or association that is not
a government entity is mandatory or required by law, or state or
imply that penalties, fines, or consequences will occur if payment is
not made to the soliciting nongovernmental person, firm,
corporation, or association. 
   (b) 
    (d)  Notwithstanding Section 17534, any violation of
this section is a misdemeanor punishable by imprisonment in a county
jail not exceeding six months, or by a fine not exceeding two
thousand five hundred dollars ($2,500), or by both that fine and
imprisonment. 
   (c) 
    (e)   Any person who is harmed as a result of a
violation of this section shall be entitled to recover, in addition
to any other available remedies, damages in an amount equal to three
times the amount solicited. 
   (d) 
    (f)  For purposes of this section, "conspicuous" or
"conspicuously" means displayed apart from other print on the page,
envelope, outside cover, or wrapper and in not less than 12-point
boldface font type in capital letters that is at least 2-point
boldface font type sizes larger than the next largest print on the
page, envelope, outside cover, or wrapper and in contrasting type,
layout, font, or color in a manner that clearly calls attention to
the language. 
  SECTION 1.    Section 17533.65 is added to the
Business and Professions Code, to read:
   17533.65.  (a) It is 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, unless the
person, firm, corporation, or association has an expressed connection
with, or the approval or endorsement of, the federal military, state
military, or military veteran entity, or military or veteran service
organization.
   (b) A person, firm, corporation, or association that is a
nongovernmental entity shall not use any seal, emblem, insignia,
trade, or brand name, or any other term, symbol, or content in any
advertising or to promote any event, presentation, seminar, workshop,
or other public gathering 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, unless the person, firm, corporation, or association has an
expressed connection with, or the approval or endorsement of, the
federal military, state military, or military veteran entity, or
military or veteran service organization.
   (c) Any violation of this section is a misdemeanor punishable by
imprisonment in a county jail not exceeding six months, or by a fine
not exceeding two thousand five hundred dollars ($2,500), or by both
that fine and imprisonment.
   (d) Any person who is harmed as a result of a violation of this
section shall be entitled to recover, in addition to any other
available remedies, damages in an amount equal to three times the
amount solicited.
   (e) For purposes of this section, "state military" has the same
meaning set forth in Section 120 of the Military and Veterans Code,
and includes the National Guard, State Military Reserve, and the
Naval Militia. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.