BILL ANALYSIS
AB 2654
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Date of Hearing: April 6, 2010
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 2654 (Hill) - As Introduced: February 19, 2010
SUBJECT : Solicitations
SUMMARY : Requires the disclaimer presently required on
solicitations and mailings to be conspicuously posted on the top
of the first page.
EXISTING LAW :
1)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.
2)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 referenced. A
violation of these or other provisions related to advertising
is a crime.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office,
"Constituents have been contacting [Assemblymember Hill's]
office with concerns about receiving 'state' documents warning
of penalties, fines, and even suspension of business if they
fail to immediately remit payment for business filings. These
documents look official with a government-looking logo and
heading that resembles government documents. While existing law
AB 2654
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requires disclosure that the business is not a government agency
or affiliated with the government, such disclosures are often
buried within the 'fine print' of the solicitation or mailing."
Background . Existing law prohibits any non-government person,
firm, or corporation, or association that solicits 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.
Existing law also requires a solicitation to bears on its face,
in conspicuous and legible type in contrast by typography,
layout, or color with other type on its face, the following
notice: "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," and, if a mailed document,
on the outside of the envelope: "THIS IS NOT A GOVERNMENT
DOCUMENT."
The author's office asserts that some solicitors are following
the letter of the law by including this disclosure statement,
but bury it deep in the communication so that it is not
immediately obvious to recipients. This bill would require such
solicitations to present their nature at the top of the first
page of their mailing, as is customarily done with full-page
advertisements in magazines and newspapers, which are clearly
labeled "advertisement."
Previous legislation . AB 2919 (Garcia), Chapter 256, Statutes
of 2008 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 state on the envelope and in the
mailing that the business is not a governmental agency and is
not associated with the governmental agency, and to include in
the mailing the contact information for the governmental agency.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
AB 2654
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Opposition
None on file.
Analysis Prepared by : Sarah Weaver / B. & P. / (916) 319-3301