BILL ANALYSIS
SB 1079
Page 1
Date of Hearing: June 15, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 1079 (Walters) - As Amended: May 3, 2010
SENATE VOTE : 30-0
SUBJECT : Office of State Printing: paid advertisements:
authorization.
SUMMARY : Permits the Office of State Printing (OSP) to
authorize paid advertisements, except for paid political
advertising, in materials printed or published by a state agency
or vendor and requires any funds derived from those
advertisements be used for operational expenses. Specifically,
this bill :
1)Permits OSP to authorize paid advertisements in materials
printed or published by OSP, a state agency, or a vendor,
except that OSP shall not print, publish, or authorize paid
political advertising.
2)Requires that funds derived from the placement of paid
advertisements on agency literature or publications pursuant
to this bill be available to the state agency to fund agency
operations upon appropriation by the Legislature.
3)Prohibits OSP from accepting or authorizing any paid
advertisement in materials printed or published for the
Secretary of State.
EXISTING LAW authorizes OSP to accept paid advertisements in
materials printed or published by the state, except for paid
political advertising.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "The
law is not clear as to how one may go about securing
advertising space, nor does it cite how one might go about
securing appropriations language. Government Code Section 14851
SB 1079
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states, 'The [OSP] may accept paid advertisements in materials
printed or published by the state, except that the department
shall not print or publish paid political advertising.'
"When speaking with some agencies (Controllers Office,
Department of Motor Vehicles [DMV], Franchise Tax Board, and
State Board of Equalization) they believe that there is a need
for language that explicitly authorizes them to use third party
advertisers on the outside of their mail."
Background . OSP's Advertising Program was first approved in
July of 1996 as part of a budget trailer bill. The Advertising
Program was intended to allow state agencies to offset their
printing costs through the incorporation of paid advertising in
state publications.
In September 2005, SB 828 (Maldonado), Chapter 381, Statutes of
2005, was enacted to authorize OSP to accept paid advertisements
in state publications. SB 828 also requires any state agency
that was not authorized to accept paid advertising in its
publications before January 1, 2006 to use OSP for all paid
advertising in its publications.
Under SB 828, any material that contains advertising must either
be printed at OSP or come through OSP. Agencies cannot print
ads in publications using other vendors unless the job is vended
out through OSP's Print Procurement Department.
Currently, there are three methods for state agencies to solicit
ads: a state agency may contract directly with OSP, contract
with a commercial advertising firm, or solicit their own ads.
The DMV is OSP's primary customer in the advertising program,
placing paid ads in approximately 10 publications. This
generates roughly between $500,000 - $1 million a year, which in
turn, is used to discount the printing costs of the department's
driver handbooks.
Previous legislation . SB 828 (Maldonado), Chapter 381, Statutes
of 2005, authorized OSP to accept paid advertisements, excluding
paid political advertisements, in materials published by the
state.
AB 2315 (Chu), Chapter 220, Statutes of 2002, extended an
existing exemption allowing OSP, under the jurisdiction of the
SB 1079
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Department of General Services, to continue accepting paid
advertisements in state printed and published materials, as
specified.
REGISTERED SUPPORT / OPPOSITION :
Support
Cross Commerce Media (sponsor)
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301