BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1629  
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ASSEMBLY THIRD READING
AB 1629 (Miller) 
As Amended May 14, 1998 
Majority vote 

  CONSUMER PROTECTION  13-0        JUDICIARY         15-1             
  

Ayes:  Davis, Runner, Alquist,   Ayes:  Escutia, Morrow, Alby,  
Aroner, 
      Cedillo, Figueroa, Firestone,    Baugh, Figueroa, Honda, 
      Frusetta, Machado, Morrissey,    Kaloogian, Keeley, Knox,  
Kuehl,
      Napolitano, Strom-Martin,        Martinez, Ortiz, Pacheco,
      Baldwin, Wildman                 Shelley
      
                                 Nays:  McClintock

  APPROPRIATIONS       17-0                                        

Ayes:  Woods, Aguiar, Baca, Brewer, 
      Cardenas, Escutia, Granlund,  
      Hertzberg, Kuehl, Machado,  
      Olberg, Papan, Poochigian,  
      Strom-Martin, Sweeney, 
      Thompson, Thomson

  SUMMARY  : Prohibits the unauthorized use of electronic mail  
networks and provides for specified penalties.  Specifically,  this  
bill  :

1) Prohibits the practice of sending unsolicited advertising by  
   electronic mail, which commonly is known as "spamming," by  
   clarifying that electronic mail service providers control the  
   use of their services and equipment.

2) Allows for the recovery of civil damages against spammers,  
   either for actual monetary damages or liquidated damages of $50  
   per spam, up to $15,000 per day, whichever is greater, and the  
   recovery of reasonable attorney's fees.

3) Prohibits the unauthorized use of computer domain names by  
   adding domain name forgery to the list of computer crimes  
   punishable by a fine of up to $10,000 and/or imprisonment for  
   up to three years.

4) Defines various terms, including "unsolicited electronic mail  
   advertisement," "electronic mail service provider," and  
   "Internet domain name" for purposes of this bill.

  FISCAL EFFECT  :  No significant state costs.

  COMMENTS  :

1) According to the author's office, this measure is intended to  
   prevent spamming and domain name fraud.  Domain names, such as  







                                                          AB 1629  
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   , can be considered the addresses of the paths  
   used to transmit e-mail via the Internet.  This bill seeks to  
   stop spamming by: a) allowing electronic mail service providers  
   to sue spammers for damage they cause to electronic mail  
   networks; and b) criminalizing unauthorized domain name use.

   Supporters argue that Internet users face a daily onslaught of  
   unsolicited e-mail from Internet businesses advertising goods  
   and services.  Known as spamming, the practice of sending mass  
   e-mails often imposes a significant time burden on Internet  
   users and often can slow down or disrupt on-line service. 

2) Spammers often use the domain names of others to disguise the  
   origin and content of their junk e-mail.  For example, Company  
   X may send out a large bulk e-mail advertisement for its  
   services with a forged and falsified return address such as  
    or . 

   Currently, a semiformal domain name registry exists that offers  
   some level of protection to domain names.  However, domain name  
   fraud is on the rise, and it can be considered akin to personal  
   name forgery or trademark infringement in that a protected  
   identity has been falsely used.  Supporters of this bill argue  
   that prohibiting unauthorized domain name use will help stop  
   the theft of service and electronic trespass that spammers  
   commit.

3) AB 1676 (Bowen), pending in the Assembly, is also an  
   anti-spamming bill.  AB 1676 takes a different approach to the  
   junk e-mail problem by: a) allowing consumers the option of  
   opting-out of spam distribution lists; and b) making spamming  
   an infraction punishable by a $500 fine for each violation. 

   In addition, AB 2640 (Bowen), which is pending in the Assembly,  
   also seeks to address the domain name forgery issue by creating  
   additional civil remedies recoverable by electronic mail  
   service providers for unauthorized domain name usage.   
   Specifically, AB 2640 allows for recovery of actual damages  
   suffered or an amount determined as specified.

4) The question can be asked whether this bill will be effective  
   against spam that originates from outside of California's  
   borders.  Specifically, it is not clear that senders of  
   out-of-state or offshore junk e-mail would be subject to the  
   provisions of this bill and whether the provisions could be  
   enforced outside of the state's jurisdiction.

5) Opponents of claim that this bill may be an unconstitutional  
   infringement on free speech and that any government regulation  
   of the Internet may have a dampening effect on Internet  
   commerce.

6) Proposed floor amendments would restore the $15,000 per day  
   liquidated damages cap in the measure. This provision was  
   removed by the Assembly Committee on Judiciary, but now is  
   being restored with the consent of that committee.







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 Analysis prepared by  :  Sailaja Cherukuri / aconpro / (916)  
319-2089 

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