BILL ANALYSIS Ó
SB 272
Page 1
SENATE THIRD READING
SB 272 (Corbett)
As Amended July 1, 2013
Majority vote
SENATE VOTE :37-0
BUSINESS & PROFESSIONS 13-0 APPROPRIATIONS 17-0
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|Ayes:|Gordon, Jones, Bocanegra, |Ayes:|Gatto, Harkey, Bigelow, |
| |Campos, Dickinson, | |Bocanegra, Bradford, Ian |
| |Bonilla, Hagman, Holden, | |Calderon, Campos, |
| |Maienschein, Mullin, | |Donnelly, Eggman, Gomez, |
| |Skinner, Ting, Wilk | |Hall, Holden, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
| | | | |
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SUMMARY : Restricts the use of military or government terms,
symbols, and content that reasonably could be interpreted or
construed as implying a connection, approval, or endorsement of
any product or service. Specifically, this bill :
1)Declares it unlawful, unless otherwise specified, for any
person, firm, corporation, or association that is a
nongovernmental entity 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 of any product or service, by any means
disseminated in this state, unless the 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.
2)Permits 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
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or veteran service organization, as specified.
3)Recasts provisions permitting any person, firm, corporation, or
association that is a nongovernmental entity to 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
implying the connection, approval, or endorsement of any
federal, state, or local government, military veteran entity, or
military or veteran service organization, if either:
a) The nongovernmental entity has an expressed connection
with, or the approval or endorsement of, a federal, state, or
local government entity; or,
b) The solicitation provides specified disclosures.
4)Permits the use of a government or military-style indicator in a
television commercial in California if 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."
5)Prohibits, for purposes of the provisions related to
solicitations, the use of seals, emblems, insignia, trade or
brand name, or any other term, symbol, or content of the United
States Department of Veterans Affairs, the California Department
of Veterans Affairs, the federal and state military, military
veteran entities, and military or veteran service organizations.
6)States that no reimbursement is required by this act 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, changes the
penalty for a crime or infraction, or changes the definition of
a crime.
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7)Makes other clarifying and technical amendments.
FISCAL EFFECT : According to Assembly Appropriations Committee,
there are no significant costs associated with this legislation.
COMMENTS :
1)Purpose of this bill . This bill expands and clarifies existing
law restricting the use of government and military symbols in
advertising and solicitation, with the aim of reducing
misleading communications to consumers. This bill is sponsored
by the California Advocates for Nursing Home Reform;
AMVETS-Department of California; Veterans of Foreign Wars
(VFW)-Department of California; and Vietnam Veterans of
America-California State Council.
2)Author's statement . According to the author, "SB 272 is needed
because [as] our service men and women return from deployment
and our veteran population increases, some unscrupulous
businesses and nongovernmental entities are targeting veterans
and increasingly trying to sell their products or services or
promote events by appearing to be connected to the military.
They establish the connection by featuring military emblems or
military department insignias, or both, on their promotional
materials and Internet Web sites without receiving permission
from the U.S. Navy, Marines, and Coast Guard or Department of
Defense and Department of Veterans Affairs."
3)Scams targeting veterans and servicemembers . This bill seeks to
protect consumers in general, and servicemembers and veterans in
particular, from potentially being misled or defrauded into
purchasing services or goods based on the use of certain
identifying seals and emblems that falsely imply a connection to
a military or veterans group.
According to the Census Bureau, California has two million
former servicemen and women, the highest number of any state in
the country, and scams targeting older adults and veterans are
on the rise. The Better Business Bureau has recently been
alerting service members, veterans and their families to the
following scams:
a) High-priced loans - Purveyors of loans may make
guarantees, promise instant approval or say their loans are
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available without credit checks, but the loans often include
hidden fees or extremely high interest rates. Legitimate
lenders generally will not guarantee a loan before
application, and loans that require upfront fees are usually
scams.
b) Veterans' benefits buyout plans - Cash payments may be
offered in exchange for a disabled veteran's future benefits
or pension payments. However, the cash is just 30-40% of
what the veteran is entitled to.
c) Fake rental properties - Stolen photos of legitimate
rental properties may be used in ads that promise military
discounts or other incentives. Service members must pay
security payments or fees via wire transfer to obtain a key.
In the end, they receive nothing.
d) Phony jury duty summons - A caller claiming to work for
the local court system tells the service member that he or
she did not show up for jury duty and now has a warrant out
for their arrest. When the victim says they never got a
summons, the caller will ask for a credit card number or
Social Security number to clear up the matter.
e) Misleading car sales - Web sites posting classified ads
will offer false discounts for military personnel or claim to
be from service members who need to sell their vehicle fast
since they are being deployed. Payment will be requested via
wire transfer, but either no vehicle arrives or it has
undisclosed problems.
f) Expensive life insurance policies - Members of the
military often are targets of high-pressure sales pitches
that offer unnecessary, expensive life insurance policies.
Solicitors may also make false statements regarding the
benefits that these policies offer.
This bill would make it unlawful for nongovernmental entities
without a valid connection to the government or military from
falsely claiming or implying a military or veterans organization
endorsement or connection.
Analysis Prepared by : Sarah Huchel / B.,P. & C.P. / (916)
SB 272
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319-3301
FN: 0001889