BILL NUMBER: AB 2633 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2010
AMENDED IN ASSEMBLY APRIL 12, 2010
INTRODUCED BY Assembly Member Davis
FEBRUARY 19, 2010
An act to amend Section 17602 of the Business and
Professions Code, relating to business. An act to
amend Section 8880.56 of the Government Code, relating to the
California State Lottery Commission.
LEGISLATIVE COUNSEL'S DIGEST
AB 2633, as amended, Davis. Business: automatic renewals
or continuous service offers. California State Lottery
Commission: report.
Existing law requires the California State Lottery Commission to
prepare and submit to the Legislature by October 1 of each year a
report detailing the lottery's purchase of goods and services through
the Department of General Services. Existing law requires also
requires this report to include a listing of contracts awarded for
more than $100,000, and to provide specified information in this
regard.
This bill would require that the report described above include a
list of each advertizing agency from which the commission has
purchased services, how much the agency was paid, and what specific
services the agency provided. The bill would also reduce the
threshold amount of a contract that is required to be listed in the
report from $100,000 to $10,000.
Existing law, on and after December 1, 2010, makes it unlawful for
any business making an automatic renewal or continuous service offer
to a consumer in this state to, among other things, fail to present
the automatic renewal or continuous service offer terms in a clear
and conspicuous manner.
Existing law imposes specified duties on the Director of Consumer
Affairs with regard to consumer interests.
This bill, on and after December 1, 2011, and until December 1,
2015, would require the Department of Consumer Affairs to annually
report to the Legislature any consumer complaints made to the
department related to automatic renewal or continuous service offer
terms and any recommendations for corrective legislation.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8880.56 of the
Government Code is amended to read:
8880.56. (a) Notwithstanding other provisions of law, the
director may purchase or lease goods and services as are necessary
for effectuating the purposes of this chapter. The director may not
contract with any private party for the operation and administration
of the California State Lottery, created by this chapter. However,
this section does not preclude procurements which integrate functions
such as game design, supply, advertising, and public relations. In
all procurement decisions, the director shall, subject to the
approval of the commission, award contracts to the responsible
supplier submitting the lowest and best proposal that maximizes the
benefits to the state in relation to the areas of security,
competence, experience, and timely performance, shall take into
account the particularly sensitive nature of the California State
Lottery and shall act to promote and ensure integrity, security,
honesty, and fairness in the operation and administration of the
lottery and the objective of raising net revenues for the benefit of
the public purpose described in this chapter.
(b) Notwithstanding any other provision of this chapter, the
following shall apply to contracts or procurement by the lottery:
(1) To ensure the fullest competition, the commission shall adopt
and publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than one
hundred thousand dollars ($100,000). The competitive bidding
procedures shall include, but not be limited to, requirements for
submission of bids and accompanying documentation, guidelines for the
use of requests for proposals, invitations to bid, or other methods
of bidding, and a bid protest procedure. The director shall determine
whether the goods or services subject to this paragraph are
available through existing contracts or price schedules of the
Department of General Services.
(2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand dollars
($100,000). The commission shall establish, as part of its bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.
(3) The provisions of Article 1 (commencing with Section 11250) of
Chapter 3 of Part 1 of Division 3 apply to the commission.
(4) The commission is subject to the Small Business Procurement
and Contract Act, as provided in Chapter 6.5 (commencing with Section
14835) of Part 5.5 of Division 3.
(5) In advertising or awarding any general contract for the
procurement of goods and services exceeding five hundred thousand
dollars ($500,000), the commission and the director shall require all
bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business concerns. The subcontracting plans shall
delineate the nature and extent of the services to be utilized, and
those concerns or individuals identified for subcontracting if known.
It is the intention of the Legislature in enacting this section to
establish as an objective of the utmost importance the advancement
of business opportunities for these small business concerns in the
private business activities created by the California State Lottery.
In that regard, the commission and the director shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by socially and economically disadvantaged small
business concerns in its procurement programs.
By July 1, 1986, the commission shall adopt proposal evaluation
procedures, criteria, and contract terms which are consistent with
the advancement of business opportunities for small business concerns
in the private business activities created by the California State
Lottery and which will achieve the most feasible and practicable
level of participation by socially and economically disadvantaged
small business concerns in its procurement programs. The proposal
evaluation procedures, criteria, and contract terms adopted shall be
reported in writing to both houses of the Legislature on or before
July 1, 1986.
For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the commission
to be disadvantaged.
The commission shall report to the Legislature by July 1, 1987,
and by each July 1 thereafter, on the level of participation of small
businesses, socially and economically disadvantaged businesses, and
California businesses in all contracts awarded by the commission.
(6) The commission shall prepare and submit to the Legislature by
October 1 of each year a report detailing the lottery's purchase of
goods and services through the Department of General Services. The
report shall also include , but not be limited to, a
listing of contracts awarded for more than one hundred
ten thousand dollars ($100,000)
($10,000) , the name of the contractor, amount
and term of the contract, and the basis upon which the contract was
awarded. The report shall further include a list of each
advertizing agency from which the commission has purchased services,
how much the agency was paid, and what specific services the agency
provided. If the advertizing agency subcontracted to another agency,
that agency shall be listed and the specific services that the agency
provided shall be enumerated. The report submitted pursuant to this
subdivision shall be submitted in compliance with Section 9795.
The lottery shall fully comply with the requirements of paragraphs
(2) to (5), inclusive, except that any function or role which is
otherwise the responsibility of the Department of Finance or the
Department of General Services shall instead, for purposes of this
subdivision, be the sole responsibility of the lottery, which shall
have the sole authority to perform that function or role.
SECTION 1. Section 17602 of the Business and
Professions Code is amended to read:
17602. (a) It shall be unlawful for any business making an
automatic renewal or continuous service offer to a consumer in this
state to do any of the following:
(1) Fail to present the automatic renewal offer terms or
continuous service offer terms in a clear and conspicuous manner
before the subscription or purchasing agreement is fulfilled and in
visual proximity, or in the case of an offer conveyed by voice, in
temporal proximity, to the request for consent to the offer.
(2) Charge the consumer's credit or debit card or the consumer's
account with a third party for an automatic renewal or continuous
service without first obtaining the consumer's affirmative consent to
the agreement containing the automatic renewal offer terms or
continuous service offer terms.
(3) Fail to provide an acknowledgment that includes the automatic
renewal or continuous service offer terms, cancellation policy, and
information regarding how to cancel in a manner that is capable of
being retained by the consumer. If the offer includes a free trial,
the business shall also disclose in the acknowledgment how to cancel
and allow the consumer to cancel before the consumer pays for the
goods or services.
(b) A business making automatic renewal or continuous service
offers shall provide a toll-free telephone number, electronic mail
address, a postal address only when the seller directly bills the
consumer, or another cost-effective, timely, and easy-to-use
mechanism for cancellation that shall be described in the
acknowledgment specified in paragraph (3) of subdivision (a).
(c) In the case of a material change in the terms of the automatic
renewal or continuous service offer that has been accepted by a
consumer in this state, the business shall provide the consumer with
a clear and conspicuous notice of the material change and provide
information regarding how to cancel in a manner that is capable of
being retained by the consumer.
(d) The requirements of this article shall apply only prior to the
completion of the initial order for the automatic renewal or
continuous service, except as follows:
(1) The requirement in paragraph (3) of subdivision (a) may be
fulfilled after completion of the initial order.
(2) The requirement in subdivision (c) shall be fulfilled prior to
implementation of the material change.
(e) Commencing December 1, 2011, and annually thereafter on
December 1, the Department of Consumer Affairs shall report to the
Legislature the number of consumer complaints received by the
department related to automatic renewal or continuous service offer
terms, the nature of those complaints, and any recommendations for
corrective legislation if the department considers legislation to be
necessary.
(f) (1) The requirements for submitting a report imposed under
subdivision (e) shall become inoperative on December 1, 2015,
pursuant to Section 10231.5 of the Government Code.
(2) A report to be submitted pursuant to subdivision (e) shall be
submitted in compliance with Section 9795 of the Government Code.