BILL ANALYSIS
AB 2654
Page 1
ASSEMBLY THIRD READING
AB 2654 (Hill)
As Introduced February 19, 2010
Majority vote
BUSINESS & PROFESSIONS 7-2 APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Eng, Hernandez, |Ayes:|Fuentes, Ammiano, Bradford, |
| |Hill, Ma, Nava, Ruskin | |Charles Calderon, Coto, |
| | | |Davis, Nava, Hall, Skinner, |
| | | |Solorio, Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+-----------------------------|
|Nays:|Niello, Smyth |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
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SUMMARY : Requires the disclaimer presently required on
solicitations and mailings to be conspicuously posted on the top of
the first page.
EXISTING LAW :
1)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.
2)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."
FISCAL EFFECT : According to the Assembly Appropriations Committee,
potential minor nonreimbursable costs to counties for prosecution
and incarceration related to violations of the bill's provisions,
offset to some extent by fine revenues. (The bill expands
provisions of current law, the violation of which is a
misdemeanor.)
AB 2654
Page 2
COMMENTS : 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 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."
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."
Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916)
319-3301 FN: 0004002