BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1373|
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THIRD READING
Bill No: AB 1373
Author: Lieu (D)
Amended: 6/29/10 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 6/22/10
AYES: Corbett, Harman, Hancock, Leno
NO VOTE RECORDED: Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Advertising: grant deed copy services
SOURCE : Author
DIGEST : This bill restricts the activities of grant deed
copy services by: (1) prohibiting misleading
representations about the necessity of obtaining a copy of
a grant deed and that the copy service is a governmental
entity or affiliated with such an entity; and (2) requiring
specific disclosures that informs homeowners that they may
obtain a copy of their grant deed directly from the county
recorder.
ANALYSIS :
Existing law provides that certain advertising-related
practices are unlawful and makes a violation of those
provisions a crime. (Business & Professions Code Section
CONTINUED
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17530 et seq.)
Existing law states that it is unlawful for any person to
make any untrue or misleading statements in any manner in
connection with the offering or performance of any
assessment reduction filing service, as defined. (Business
& Professions Code Section 17537.9.)
This bill states that is unlawful for any person, firm,
corporation, association, or any other business entity to
make any untrue or misleading statements in any manner in
connection with the offering or performance of a grant deed
copy service.
This bill provides that an "untrue or misleading statement"
includes, but is not limited to, any representation with
regards to property identified by its address or assessor's
parcel number that any of the following is true:
1. That due to property foreclosures and loan
modifications in the county where the property is
located, the property owner should obtain a copy of his
or her grant deed or other record of title.
2. That a governmental entity, or any other entity that
includes in its name words that could lead a person to
reasonably believe that the entity is affiliated with
the government, has recommended that a property owner
should have a copy of his or her grant deed or other
record of title.
3. That the offer or of the grant deed copy service is,
or is affiliated with, any governmental entity. A
violation of this prohibition includes, but is not
limited to, the following:
A. The misleading use of a governmental seal,
emblem, or other similar symbol.
B. The use of a business name including the words
"title" or "grant deed" or "public record" and the
word "agency," "bureau," "department," "division,"
"federal," "state," "county," "city," or
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"municipal," or the name of any city, county, city
and county, or any governmental entity.
C. The use of an envelope that simulates an
envelope containing a government check, tax bill,
or government notice or an envelope that otherwise
has the capacity to be confused with, or mistaken
for, an envelope sent by a government entity.
D. The use of an envelope or outside cover or
wrapper in which a solicitation is mailed that
does not bear on its face in capital letters and
in conspicuous and legible type the following
notice: "THIS IS NOT A GOVERNMENT APPROVED OR
AUTHORIZED DOCUMENT."
E. That there is a fee payment deadline to obtain
a copy of a property owner's grant deed or other
record of title.
This bill provides that it is unlawful to offer to perform
a grant deed copy service without providing a specified
disclosure, in all caps, that the service is not associated
with any governmental entity, that the individual can
obtain a copy of their grant deed from the county recorder,
and the fee for the copy of the grant deed in that county.
This bill requires the above disclosure to be placed at the
top of each page of every advertisement or promotional
material disseminated by an offeror of a grant deed copy
service and printed in 14-point boldface type enclosed in a
box formed by a heavy line. That disclosure must also be
recited at the beginning of every oral solicitation or
broadcast advertisement, and delivered in printed form
before any person who responds is obligated to pay for the
service.
This bill means a service offered by a person, firm,
corporation, association, or any other business entity,
through a mailed solicitation to a property owner, to
obtain, for compensation, a copy of the property owner's
grant deed or other record of title.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: Yes
SUPPORT : (Verified 8/2/10)
County Recorders Association of California
ARGUMENTS IN SUPPORT : According to the author's office,
this bill ends [a] despicable practice by making it illegal
for any person, association, or other business entity to
make any untrue or misleading statements in any manner that
connects with the offering or performing of a Grant Deed
copy service. This is defined as any service performed, or
offered to be performed, for compensation in connection
with obtaining a copy from the county recorder of a
property owner's Grant Deed or other record title.
This bill makes it illegal to [] send the mailing without
making important disclosures, including clearly disclosing
that they are not affiliated with any government agency.
Under this bill, all future solicitations must print in
boldface type, "THIS IS NOT A GOVERNMENT APPROVED OR
AUTHORIZED DOCUMENT." Furthermore, under this bill, these
solicitations would also have to declare that consumers
have the right to obtain their grant deeds from their
county recorder for a nominal charge.
RJG:do 8/2/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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