BILL NUMBER: AB 1816	CHAPTERED  07/24/00

	CHAPTER   185
	FILED WITH SECRETARY OF STATE   JULY 24, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE SENATE   JULY 6, 2000
	PASSED THE ASSEMBLY   MAY 18, 2000
	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   APRIL 27, 2000

INTRODUCED BY   Assembly Member Wayne
   (Coauthors:  Assembly Members Alquist, Cardenas, Dutra, Kuehl,
Machado, and Strom-Martin)
   (Coauthors:  Senators Karnette and Solis)

                        FEBRUARY 3, 2000

   An act to amend Section 22433 of the Business and Professions
Code, relating to simulated checks.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1816, Wayne.  Simulated checks.
   Existing law provides that no person shall produce, advertise,
offer for sale, sell, distribute, or otherwise transfer for use in
this state any simulated check, as defined, unless the document bears
language in clear and conspicuous type indicating that the document
is not a check.  Existing law provides for enforcement of this
provision by the Attorney General, who may seek an injunction and a
civil penalty, as specified.
   This bill would completely prohibit the use of simulated checks,
and would make legislative findings in this regard.


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


  SECTION 1.  The Legislature finds and declares that the use of
simulated checks is inherently misleading to many members of the
public who believe that they have won a prize or gift or received a
monetary benefit represented by the simulated check and that the
simulated check itself either has the value represented on its face
or represents an actual check or other item of value that can be
claimed or redeemed with the simulated check.  The Legislature
further finds and declares that disclosures, such as an indication
that the simulated check is not a real check, have not been effective
in curing the misleading impact created by the bogus checks.  It is,
therefore, the intent of the Legislature to prevent the deception
inherent in simulated checks by prohibiting their use.
  SEC. 2.  Section 22433 of the Business and Professions Code is
amended to read:
   22433.  (a) As used in this section, "simulated check" means any
document that is not currency or a check, draft, note, bond, or other
negotiable instrument but that, because of its appearance, has the
tendency to mislead or deceive any person viewing it into believing
that it, in fact, represents any of the following:  (1) currency or a
negotiable instrument that can be deposited in a bank or used for
third party payments; (2) a prize, gift, or monetary benefit that the
recipient has won or is entitled or guaranteed to receive; or (3) an
actual check or other item of value that can be claimed or redeemed.
  "Simulated check" does not include a nonnegotiable check, draft,
note, or other instrument that is used for soliciting orders for the
purchase of checks, drafts, notes, bonds, or other instruments, and
that is clearly marked as a sample, specimen, or nonnegotiable.
"Simulated check" also does not include any document indicating in a
truthful and nonmisleading manner that a person, in fact,
unconditionally has won or is entitled or guaranteed to receive a
specific prize, gift, or amount of money or credit.
   (b) No person shall produce, advertise, offer for sale, sell,
distribute, or otherwise transfer for use in this state any simulated
check.
   (c) The Attorney General may bring an action to enjoin a violation
of this section, and to recover a civil penalty of not more than one
hundred dollars ($100) for each violation of this section.  A
violation of this section may be enjoined without proof that any
person has, in fact, been injured or damaged by the violation.