Bill Text: CA SB272 | 2013-2014 | Regular Session | Chaptered


Bill Title: Advertising and solicitations: government and military endorsements.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2013-10-10 - Chaptered by Secretary of State. Chapter 695, Statutes of 2013. [SB272 Detail]

Download: California-2013-SB272-Chaptered.html
BILL NUMBER: SB 272	CHAPTERED
	BILL TEXT

	CHAPTER  695
	FILED WITH SECRETARY OF STATE  OCTOBER 10, 2013
	APPROVED BY GOVERNOR  OCTOBER 10, 2013
	PASSED THE SENATE  AUGUST 30, 2013
	PASSED THE ASSEMBLY  AUGUST 26, 2013
	AMENDED IN ASSEMBLY  JULY 1, 2013
	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 8, 2013

INTRODUCED BY   Senator Corbett

                        FEBRUARY 14, 2013

   An act to amend Section 17533.6 of the Business and Professions
Code, relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 272, Corbett. Advertising and solicitations: government and
military endorsements.
    Existing law makes it unlawful for any person, firm, corporation,
or association that is a nongovernmental entity to solicit funds or
information, or the purchase of goods or services, by means of a
mailing, electronic message, or Internet Web site that contains a
seal, emblem, insignia, trade or brand name, or any other term,
symbol, or content that reasonably could be interpreted or construed
as implying any federal, state, or local government connection,
approval, or endorsement, unless certain criteria are met. A
violation of this provision is a crime.
   This bill would revise and recast that provision. Except as
specified, the bill would make it unlawful for any person, firm,
corporation, or association that is a nongovernmental entity to use
any seal, emblem, insignia, trade or brand name, or any other term,
symbol, or content that reasonably could be interpreted or construed
as implying any federal, state, or local government, military veteran
entity, or military or veteran service organization connection,
approval, or endorsement of any product or service, including, but
not limited to, any financial product, goods, or services, by any
means, including, but not limited to, a mailing, electronic message,
Internet Web site, periodical, or television commercial.
   This bill would authorize any person, firm, corporation, or
association that is a nongovernmental entity to advertise or promote
any event, presentation, seminar, workshop, or other public gathering
using a seal, emblem, insignia, trade or brand name, or any other
term, symbol, or content, if the person, firm, corporation, or
association that is a nongovernmental entity has an expressed
connection with, or the approval or endorsement of, a federal, state,
or local government, military veteran entity, or military or veteran
service organization. The bill would authorize any person, firm,
corporation, or association that is a nongovernmental entity to
solicit information, solicit the purchase of or payment for a product
or service, or solicit the contribution of funds or membership fees,
by any means, including, but not limited to, a mailing, electronic
message, Internet Web site, periodical, or television commercial
disseminated in this state, using a seal, emblem, insignia, trade or
brand name, or any other term, symbol, or content, if the person,
firm, corporation, or association that is a nongovernmental entity
meets certain requirements.
   By changing the definition of a crime and creating new crimes, the
bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17533.6 of the Business and Professions Code is
amended to read:
   17533.6.  (a) Except as described in subdivisions (b) and (c), it
is unlawful for any person, firm, corporation, or association that is
a nongovernmental entity to use a seal, emblem, insignia, trade or
brand name, or any other term, symbol, or content that reasonably
could be interpreted or construed as implying any federal, state, or
local government, military veteran entity, or military or veteran
service organization connection, approval, or endorsement of any
product or service, including, but not limited to, any financial
product, goods, or services, by any means, including, but not limited
to, a mailing, electronic message, Internet Web site, periodical, or
television commercial disseminated in this state, unless the
nongovernmental entity has an expressed connection with, or the
approval or endorsement of, a federal, state, or local government,
military veteran entity, or military or veteran service organization.

   (b) Notwithstanding subdivision (a) and if permitted by other
provisions of law, any person, firm, corporation, or association that
is a nongovernmental entity may advertise or promote any event,
presentation, seminar, workshop, or other public gathering using a
seal, emblem, insignia, trade or brand name, or any other term,
symbol, or content as described in subdivision (a), if the person,
firm, corporation, or association that is a nongovernmental entity
has an expressed connection with, or the approval or endorsement of,
a federal, state, or local government, military veteran entity, or
military or veteran service organization.
   (c) Notwithstanding subdivision (a), any person, firm,
corporation, or association that is a nongovernmental entity may
solicit information, solicit the purchase of or payment for a product
or service, or solicit the contribution of funds or membership fees,
by any means, including, but not limited to, a mailing, electronic
message, Internet Web site, periodical, or television commercial
disseminated in this state, using a seal, emblem, insignia, trade or
brand name, or any other term, symbol, or content as described in
subdivision (a), if the person, firm, corporation, or association
that is a nongovernmental entity meets the requirements of paragraph
(1) or (2) as follows:
   (1) The nongovernmental entity has an expressed connection with,
or the approval or endorsement of, a federal, state, or local
government entity, if permitted by other provisions of law.
   (2) (A) The solicitation meets all of the following requirements:
   (i) The solicitation conspicuously displays the following
disclosure on the front and back of every page of the solicitation:

"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."

   (ii) In the case of a mailed solicitation, the front of the
envelope, outside cover, or wrapper in which the matter is mailed
conspicuously displays the following disclosure:

"THIS IS NOT A GOVERNMENT DOCUMENT."

   (iii) If permitted by other provisions of law, in the case of a
television commercial disseminated in this state, the solicitation
conspicuously displays the following disclosure at the top of the
television screen for the entire duration of the television
commercial:

   "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."

   (iv) The disclosure in clause (i) shall be displayed
conspicuously, as provided in subdivision (f), and immediately below
each portion of the solicitation that reasonably could be construed
to specify an amount due and payable by the recipient. The disclosure
in clause (ii) shall be displayed conspicuously, as provided in
subdivision (f), and immediately below the area of the envelope,
outside cover, or wrapper that is used for a return address. The
disclosure in clause (iii) shall be displayed conspicuously, as
provided in subdivision (f), and at the top of the television screen.
The disclosures in clauses (i), (ii), and (iii) shall not be
preceded, followed, or surrounded by symbols, terms, or other content
that result in the disclosures not being conspicuous or that
introduce, modify, qualify, or explain the text of those disclosures.

   (v) The solicitation does not use a title or trade or brand name
that reasonably could be interpreted or construed as implying any
federal, state, or local government connection, approval, or
endorsement, including, but not limited to, use of the term "agency,"
"administrative," "assessor," "board," "bureau," "collector,"
"commission," "committee," "department," "division," "recorder,"
"unit," "federal," "state," "county," "city," or "municipal," or the
name or division of any government agency.
   (vi) The solicitation does not specify a date or time period when
payment to the soliciting nongovernmental person, firm, corporation,
or association is due, including, but not limited to, use of the
terms "due date," "due now," "remit by," "remit immediately,"
"payment due," "pay now," "pay immediately," or "pay no later than,"
unless the solicitation displays, in the same sentence as the date or
time period specified, how the information being solicited will be
used, a description of the product or service that is to be provided
and to what government agency it shall be rendered, or how the
solicited funds or membership fees will be used, as applicable.
   (vii) The solicitation does not state or imply that payment to any
person, firm, corporation, or association that is not a government
entity is mandatory or required by law, or state or imply that
penalties, fines, or consequences will occur if payment is not made
to the soliciting nongovernmental person, firm, corporation, or
association.
   (B) Subparagraph (A) is not applicable to seals, emblems,
insignia, trade or brand name, or any other term, symbol, or content
of the United States Department of Veterans Affairs, the Department
of Veterans Affairs, the federal and state military, military veteran
entities, and military or veteran service organizations.
   (d) Notwithstanding Section 17534, any violation of this section
is a misdemeanor punishable by imprisonment in a county jail not
exceeding six months, or by a fine not exceeding two thousand five
hundred dollars ($2,500), or by both that fine and imprisonment.
   (e)  Any person who is harmed as a result of a violation of this
section shall be entitled to recover, in addition to any other
available remedies, damages in an amount equal to three times the
amount solicited.
   (f) For purposes of this section, "conspicuous" or "conspicuously"
means displayed apart from other print on the page, envelope,
outside cover, or wrapper and in not less than 12-point boldface font
type in capital letters that is at least 2-point boldface font type
sizes larger than the next largest print on the page, envelope,
outside cover, or wrapper and in contrasting type, layout, font, or
color in a manner that clearly calls attention to the language.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.                 
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