BILL ANALYSIS
SB 1079
Page 1
SENATE THIRD READING
SB 1079 (Walters)
As Amended August 3, 2010
Majority vote
SENATE VOTE :30-0
BUSINESS & PROFESSIONS 11-0APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Conway, Eng, |Ayes:|Fuentes, Conway, |
| |Hernandez, Hill, Ma, | |Bradford, |
| |Nava, Niello, Ruskin, | |Charles Calderon, Coto, |
| |Smyth, Logue | |Davis, |
| | | |De Leon, Gatto, Hall, |
| | | |Harkey, Miller, Nielsen, |
| | | |Norby, Skinner, Solorio, |
| | | |Torklakson, Torrico |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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.
4)Requires written consent prior to printing or publishing
materials for an executive branch agency administered by a
SB 1079
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constitutional officer other than the Governor, by the
director of the agency and authorizes the director to revoke
this consent, as specified.
EXISTING LAW authorizes OSP to accept paid advertisements in
materials printed or published by the state, except for paid
political advertising.
FISCAL EFFECT : According to the Appropriations Committee
analysis, to the extent this bill increases the number of paid
advertisements in state publications it would result in
increased revenue for the state. It is unknown how much revenue
would be generated. However, the Department of General Services
estimates that if successful, this legislation could generate
millions of dollars in revenue depending on the circulation of
the publication or mailing that contained the ads.
COMMENTS : 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 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."
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.
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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: 1) a state agency may contract directly with OSP; 2)
contract with a commercial advertising firm; or, 3) 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.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301
FN: 0005362