BILL NUMBER: AB 2654	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2010
	AMENDED IN SENATE  JUNE 15, 2010

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 19, 2010

   An act to amend Section 17533.6 of the Business and Professions
Code, relating to solicitations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2654, as amended, Hill. Solicitations.
   Existing law makes it unlawful for any person, firm, or
corporation, or association that is a nongovernmental entity to
solicit funds or information by means of a mailing, electronic
message, or Internet Web site that contains any term or symbol that
reasonably could be interpreted or construed as implying any state or
local government connection, approval, or endorsement, unless the
nongovernmental entity has an expressed connection with a state or
local entity or unless the solicitation and mailing contains a
specified disclosure that it is not a governmental document. Existing
law also requires a business that solicits the purchase of, or
payment for, a service by means of an unsolicited mailing offering to
assist the recipient in dealing with a state or local governmental
agency to disclose on the envelope and in the mailing that the
business is not a governmental agency and is not associated with the
governmental agency rereferenced. A violation of these or other
provisions related to advertising is a misdemeanor, punishable by
imprisonment in the county jail for up to 6 months, a fine of up to
$1,000, or both.
   This bill would also make it unlawful for these solicitations to
contain an emblem or  any  other  language 
 content  or specified title, trade, or brand names, that
reasonably could be interpreted or construed as implying any 
federal,  state  ,  or local government connection,
approval, or endorsement and would require the disclosures to be
conspicuously displayed apart from other print in the solicitation
and on the envelope, cover, or wrapper in which the solicitation is
mailed, as specified. The bill would  also prohibit that
solicitation from containing certain payment provisions unless a
specified disclosure is additionally included. The bill would 
authorize a person to recover specified damages if the person is
harmed from a violation of the provisions regulating the solicitation
of funds or information by a nongovernmental entity. The bill would
establish specified fines and criminal penalties for a violation of
these provisions, and thereby would impose a state-mandated local
program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 17533.6 of the Business and Professions Code is
amended to read:
   17533.6.  (a) It is unlawful for any person, firm, corporation, or
association that is a nongovernmental entity to solicit information,
or to solicit the purchase of or payment for a product or service,
or to solicit the contribution of funds or membership fees, by means
of a mailing, electronic message, or Internet Web site that contains
a seal, emblem, insignia, trade or brand name, or any other 
language, term, or symbol   term, symbol, or content
 that reasonably could be interpreted or construed as implying
 any state   the federal, state,  or local
government connection, approval, or endorsement, unless the
requirements of paragraph (1) or (2) have been met, as follows:
   (1) The nongovernmental entity has an expressed connection with,
or the approval or endorsement of, a  state  
federal, state,  or local government entity, if permitted by
other provisions of law.
   (2) The solicitation meets all of the following requirements:
   (A) The solicitation conspicuously displays the following
disclosure on the front and back of every page of the solicitation:
"THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY
GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF
THE GOVERNMENT."
   (B) In the case of a mailed solicitation, the envelope or outside
cover or wrapper in which the matter is mailed conspicuously displays
the following disclosure  on the front of the envelope, outside
cover, or wrapper  :
"THIS IS NOT A GOVERNMENT DOCUMENT."
   (C) The disclosure in subparagraph (A) shall be displayed
conspicuously, as provided in subdivision  (f)  
(d)  , and immediately below each portion of the solicitation
that reasonably could be construed to specify an amount due and
payable by the recipient. The disclosure in subparagraph (B) shall be
displayed conspicuously, as provided in subdivision  (f)
  (d)  , and immediately below the area of the
envelope, outside cover, or wrapper that is used for a return
address. The disclosures in subparagraphs (A) and (B) shall not be
preceded, followed, or surrounded by  language, words,
symbols, terms   terms, symbols  , or other content
that result in the disclosures not being conspicuous or that
introduce, modify, qualify, or explain the text of those disclosures.

   (D) The solicitation shall not use a title or trade or brand name
that reasonably could be interpreted or construed as implying any
 state   federal, state,  or local
government connection, approval, or endorsement, including, but not
limited to, use of the  word   term 
"agency," "administrative," "assessor," "board," "bureau,"
"collector," "commission," "committee," "department," "division,"
"recorder," "unit," "state," "county," "city," or "municipal," or the
name of any government agency  or division  . 
   (E) The solicitation shall not specify a date or time period when
payment to the soliciting nongovernmental person, firm, corporation,
or association is due, including, but not limited to, use of the
terms "due date," "due now," "remit by," "remit immediately,"
"payment due," "pay now," "pay immediately," or "pay no later than,"
unless the solicitation displays, in the same sentence as the date or
time period specified, how the information being solicited will be
used, a description of the product or service that is to be provided,
and to what government agency it shall be rendered, or how the
solicited funds or membership fees will be used, as applicable. 

   (E) 
    (F)  The solicitation shall not state or imply that
payment to any person, firm, corporation, or association that is not
a government entity is mandatory or required by law, or state or
imply that penalties, fines, or consequences will occur if payment is
not made to the soliciting nongovernmental person, firm,
corporation, or association. 
   (b) Except as provided in subdivision (c), any business that
solicits the purchase of, or payment for, a service by means of an
unsolicited mailing that offers to assist the recipient in dealing
with a state or local governmental agency shall conspicuously state
on the envelope and in the mailing that the business is not a
governmental agency and is not associated with the governmental
agency referenced.  
   (c) Subdivision (b) shall not apply if the business has an
expressed connection with, or the approval or endorsement of, a state
or local governmental entity, if permitted by other provisions of
law.  
   (d) 
    (b)  Notwithstanding Section 17534, any violation of
this section is a misdemeanor punishable by imprisonment in a county
jail not exceeding six months, or by a fine not exceeding two
thousand five hundred dollars ($2,500), or by both that fine and
imprisonment. 
   (e) 
    (c)  Any person who is harmed as a result of a violation
of this section shall be entitled to recover, in addition to any
other available remedies, damages in an amount equal to three times
the amount solicited. 
   (f) 
    (d)  For purposes of this section, "conspicuous" or
"conspicuously" means displayed apart from other print on the page,
envelope, outside cover, or wrapper and in not less than 12-point
boldface font type in capital letters that is at least 2-point
boldface font type sizes larger than the next largest print on the
page, envelope, outside cover, or wrapper and in contrasting type,
layout, font, or color in a manner that clearly calls attention to
the language.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
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