BILL NUMBER: SB 426	CHAPTERED
	BILL TEXT

	CHAPTER   642
	FILED WITH SECRETARY OF STATE   OCTOBER 6, 1995
	APPROVED BY GOVERNOR   OCTOBER 5, 1995
	PASSED THE SENATE   SEPTEMBER 5, 1995
	PASSED THE ASSEMBLY   SEPTEMBER 1, 1995
	AMENDED IN ASSEMBLY   JULY 28, 1995
	AMENDED IN ASSEMBLY   JULY 1, 1995
	AMENDED IN SENATE   MAY 15, 1995
	AMENDED IN SENATE   APRIL 4, 1995
	AMENDED IN SENATE   MARCH 20, 1995

INTRODUCED BY  Senator Leslie

                        FEBRUARY 15, 1995

   An act to amend Section 17580 of, to add Section 17580.5 to, and
to repeal Section 17508.5 of, the Business and Professions Code,
relating to environmental advertising.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 426, Leslie.  Environmental advertising.
   Under existing law, it is unlawful for a person to represent that
a consumer good, as defined, which it manufactures or distributes, is
"ozone friendly," "biodegradable," "photodegradable," "recyclable,"
or "recycled," unless that article meets specified definitions or
meets definitions established in trade rules adopted by the Federal
Trade Commission.
   The bill would repeal this provision.
   Under existing law, a person who represents that a consumer good
that it manufactures or distributes is not harmful to, or is
beneficial to, the natural environment, through the use of specified
environmental terms, is required to maintain in written form in its
records information and documentation supporting the validity of the
representation, as specified.  This information and documentation is
required to be furnished to any member of the public upon request and
to be fully disclosed to the public, within the limits of all
applicable laws.  A violation of these requirements is a misdemeanor.

   This bill would also provide that it is unlawful for a person to
make any untruthful, deceptive, or misleading environmental marketing
claim , whether explicit or implied.  This bill would provide that
"environmental claim" includes any claim contained in the "Guides for
the Use of Environmental Marketing Claims" published by the Federal
Trade Commission.  This bill would provide a defense to a suit or
complaint brought under its provisions, as specified.  Violation of
this provision would be a misdemeanor.  This bill would therefore
create a new crime and 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that it is the
public policy of the state that environmental marketing claims,
whether explicit or implied, must be substantiated by competent and
reliable evidence to prevent deceiving or misleading consumers about
the environmental impact of products and packages.  Accurate and
useful information about the environmental impact of products and
packages will not be available to consumers unless uniform standards
for environmental marketing claims, such as the Federal Trade
Commission Guidelines for Environmental Marketing Claims, are adopted
by the various states.
  SEC. 2.  Section 17508.5 of the Business and Professions Code is
repealed.
  SEC. 3.  Section 17580 of the Business and Professions Code is
amended to read:
   17580.  (a) Any person who represents in advertising or on the
label or container of a consumer good that the consumer good that it
manufactures or distributes is not harmful to, or is beneficial to,
the natural environment, through the use of such terms as
"environmental choice," "ecologically friendly," "earth friendly,"
"environmentally friendly," "ecologically sound," "environmentally
sound," "environmentally safe," "ecologically safe," "environmentally
lite," "green product," or any other like term, shall   maintain in
written form in its records the following information and
documentation supporting the validity of the representation:
   (1) The reasons why the person believes the representation to be
true.
   (2) Any significant adverse environmental impacts directly
associated with the production, distribution, use, and disposal of
the consumer good.
   (3) Any measures that are taken by the person to reduce the
environmental impacts directly associated with the production,
distribution, and disposal of the consumer good.
   (4) Violations of any federal, state, or local permits directly
associated with the production or distribution of the consumer good.

   (5) Whether or not, if applicable, the consumer good conforms with
the uniform standards contained in the Federal Trade Commission
Guidelines for Environmental Marketing Claims for the use of the
terms "recycled," "recyclable," "biodegradable," "photodegradable,"
or "ozone friendly."
   (b) Information and documentation maintained pursuant to this
section shall be furnished to any member of the public upon request.

   (c) For the purposes of this section, a wholesaler or retailer who
does not initiate a representation by advertising or by placing the
representation on a package shall not be deemed to have made the
representation.
   (d) It is the intent of the Legislature that the information and
documentation supporting the validity of the representation
maintained under this section shall be fully disclosed to the public,
within the limits of all applicable laws.
  SEC. 4.  Section 17580.5 is added to the Business and Professions
Code, to read:
   17580.5.  (a) It is unlawful for any person to make any
untruthful, deceptive, or misleading environmental marketing claim,
whether explicit or implied.  For the purpose of this section,
"environmental marketing claim" shall include any claim contained in
the "Guides for the Use of Environmental Marketing Claims" published
by the Federal Trade Commission.
   (b) It shall be a defense to any suit or complaint brought under
this section that the person's environmental marketing claims conform
to the standards or are consistent with the examples contained in
the "Guides for the Use of Environmental Marketing Claims" published
by the Federal Trade Commission.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.