BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2076
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2076 (Salas) - As Introduced:  February 18, 2010 

          Policy Committee:                              B, P, and  
          C.P.Vote:    11 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill prohibits a provider or vendor of floral or ornamental  
          products or services from misrepresenting the location of its  
          business by: 

          1)Listing a local telephone number in any advertisement if calls  
            to that number are forwarded to a location different than the  
            location indicated in the advertisement and if the  
            advertisement does not identify the true physical address of  
            the business. 

          2)Listing a fictitious business name in any advertisement if the  
            name misrepresents the business' geographic location and if  
            the advertisement does not identify the true physical address  
            of the business.

           FISCAL EFFECT  

          Potential minor non-reimbursable local costs for investigation  
          and prosecution of violations, potentially offset by fine  
          revenue.

           COMMENTS 

           1)Purpose  . According to the sponsor, the California State Floral  
            Association (CSFA), this bill will prohibit out-of-state  
            marketers from stealing the identity of local florists. CSFA  
            claims that sellers of floral products have been able to  
            represent themselves as local businesses in advertisements in  
            any given area by using a local community name and/or using a  
            local phone number that is re-directed to a different  








                                                                  AB 2076
                                                                  Page  2

            location, oftentimes out-of-state. CSFA maintains that this  
            arrangement has led to a situation where "California florists  
            are losing income, California workers are losing wages, the  
            state of California is losing tax revenue and finally,  
            California consumers are losing their ability to choose to buy  
            a local product from a local vendor."  CSFA indicates that 22  
            other states have passed similar legislation. 

           2)Prior Legislation  . AB 1282 (Salas) of 2007 makes it unlawful  
            for a provider of floral or ornamental products or services to  
            misrepresent the geographic location of its business.  The  
            bill was vetoed. In his veto message the governor wrote, "In  
            today's global economy, it is unreasonable to limit  
            out-of-area businesses from using local names and telephone  
            numbers.  In virtually every aspect of the economy, consumers  
            are accustomed to purchasing products from around the world  
            via many methods."

            AB 1074 (Nakano) of 2002, which was substantially similar to  
            this bill, was vetoed by Governor Davis, who noted the same  
            concerns as Governor Schwarzenegger did in his veto of AB 1282  
            (Salas).

            AB 1375 (House) of 1999, which was also similar, was also  
            vetoed.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081