BILL NUMBER: SB 1400	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Simitian

                        FEBRUARY 21, 2008

   An act to amend Section 17539.15 of the Business and Professions
Code, relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1400, as introduced, Simitian. Sweepstakes.
   Existing law provides that any person who contrives, prepares,
sets up, proposes, or draws any lottery is guilty of a misdemeanor.
   Existing law defines "sweepstakes" to mean any procedure for the
distribution of anything of value by lot or by chance that is not
unlawful. Existing law sets forth specified advertising and
solicitation requirements with regard to the operation of
sweepstakes, as specified.
   This bill would specify that the operator of any sweepstakes may
not condition the collection of a prize upon payment of a fee.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 17539.15 of the Business and Professions Code
is amended to read:
   17539.15.  (a) Solicitation materials containing sweepstakes entry
materials shall not represent, taking into account the context in
which the representation is made, including, without limitation,
emphasis, print, size, color, location, and presentation of the
representation and any qualifying language, that a person is a winner
or has already won a prize unless that person has in fact won a
prize. If the representation is made on or visible through the
mailing envelope containing the sweepstakes materials, the context in
which the representation is to be considered, including any
qualifying language, shall be limited to what appears on, appears
from, or is visible through the mailing envelope.
   (b) Solicitation materials containing sweepstakes entry materials
shall include a prominent statement of the no-purchase-necessary
message, in readily understandable terms, in the official rules
included in those solicitation materials and, if the official rules
do not appear thereon, on the entry-order device included in those
solicitation materials. The no-purchase-necessary message included in
the official rules shall be set out in a separate paragraph in the
official rules and be printed in capital letters in contrasting
typeface not smaller than the largest typeface used in the text of
the official rules.
   (c) Sweepstakes entries not accompanied by an order for products
or services shall not be subjected to any disability or disadvantage
in the winner selection process to which an entry accompanied by an
order for products or services would not be subject.
   (d) Sweepstakes materials containing sweepstakes entry materials
shall not represent that an entry in the promotional sweepstakes
accompanied by an order for products or services will be eligible to
receive additional prizes or be more likely to win than an entry not
accompanied by an order for products or services or that an entry not
accompanied by an order for products or services will have a reduced
chance of winning a prize in the promotional sweepstakes. 
   (e) A person or entity that operates a sweepstakes may not charge
a fee as a condition of collecting a prize.  
   (e) 
    (f)    For purposes of this section:
   (1) "No-purchase-necessary message" means a statement to the
effect that no purchase is necessary as a condition of entering the
promotional sweepstakes.
   (2) "Official rules" means the formal printed statement, however
designated, of the rules for the promotional sweepstakes appearing in
the solicitation materials. The official rules shall be prominently
identified and all references thereto in any solicitation materials
shall consistently use the designation for the official rules that
appears in those materials. Each sweepstakes solicitation shall
contain a copy of the official rules.