BILL NUMBER: AB 2654ENROLLED BILL TEXT PASSED THE SENATE AUGUST 23, 2010 PASSED THE ASSEMBLY AUGUST 24, 2010 AMENDED IN SENATE AUGUST 19, 2010 AMENDED IN SENATE JUNE 15, 2010 INTRODUCED BY Assembly Member Hill FEBRUARY 19, 2010 An act to amend Section 17533.6 of the Business and Professions Code, relating to solicitations. LEGISLATIVE COUNSEL'S DIGEST AB 2654, Hill. Solicitations. Existing law makes it unlawful for any person, firm, or corporation, or association that is a nongovernmental entity to solicit 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, unless the nongovernmental entity has an expressed connection with a state or local entity or unless the solicitation and mailing contains a specified disclosure that it is not a governmental document. Existing law also requires a business that solicits the purchase of, or payment for, a service by means of an unsolicited mailing offering to assist the recipient in dealing with a state or local governmental agency to disclose on the envelope and in the mailing that the business is not a governmental agency and is not associated with the governmental agency rereferenced. A violation of these or other provisions related to advertising is a misdemeanor, punishable by imprisonment in the county jail for up to 6 months, a fine of up to $1,000, or both. This bill would also make it unlawful for these solicitations to contain an emblem or any other content or specified title, trade, or brand names, that reasonably could be interpreted or construed as implying any federal, state, or local government connection, approval, or endorsement and would require the disclosures to be conspicuously displayed apart from other print in the solicitation and on the envelope, cover, or wrapper in which the solicitation is mailed, as specified. The bill would also prohibit that solicitation from containing certain payment provisions unless a specified disclosure is additionally included. The bill would authorize a person to recover specified damages if the person is harmed from a violation of the provisions regulating the solicitation of funds or information by a nongovernmental entity. The bill would establish specified fines and criminal penalties for a violation of these provisions, and thereby 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) It is unlawful for any person, firm, corporation, or association that is a nongovernmental entity to solicit information, or to solicit the purchase of or payment for a product or service, or to solicit the contribution of funds or membership fees, 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 the federal, state, or local government connection, approval, or endorsement, unless the requirements of paragraph (1) or (2) have been met, 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) The solicitation meets all of the following requirements: (A) 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." (B) In the case of a mailed solicitation, the envelope or outside cover or wrapper in which the matter is mailed conspicuously displays the following disclosure on the front of the envelope, outside cover, or wrapper: "THIS IS NOT A GOVERNMENT DOCUMENT." (C) The disclosure in subparagraph (A) shall be displayed conspicuously, as provided in subdivision (d), 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 subparagraph (B) shall be displayed conspicuously, as provided in subdivision (d), and immediately below the area of the envelope, outside cover, or wrapper that is used for a return address. The disclosures in subparagraphs (A) and (B) shall not be preceded, followed, or surrounded by terms, symbols, or other content that result in the disclosures not being conspicuous or that introduce, modify, qualify, or explain the text of those disclosures. (D) The solicitation shall 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," "state," "county," "city," or "municipal," or the name of any government agency or division. (E) The solicitation shall 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. (F) The solicitation shall 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) 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. (c) 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. (d) 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.