BILL NUMBER: AB 1676	AMENDED

	BILL TEXT



	AMENDED IN SENATE   AUGUST 20, 1998

	AMENDED IN SENATE   JUNE 30, 1998

	AMENDED IN ASSEMBLY   APRIL 28, 1998

	AMENDED IN ASSEMBLY   MARCH 26, 1998

	AMENDED IN ASSEMBLY   MARCH 12, 1998



INTRODUCED BY   Assembly Member Bowen

   (Coauthors:  Assembly Members Brown, Campbell, Kuehl, Leach,

Martinez, and Mazzoni)

   (Coauthors:  Senators Dills, Karnette, O'Connell, Solis,

Vasconcellos, and Watson)



                        JANUARY 14, 1998



   An act to amend Section 17538.4 of the Business and Professions

Code, relating to advertising.





	LEGISLATIVE COUNSEL'S DIGEST





   AB 1676, as amended, Bowen.  Advertising:  electronic mail.

   Existing law prohibits a person conducting business in this state

from faxing unsolicited advertising material, unless certain

conditions are satisfied.

   This bill would expand that prohibition to include the

transmission of unsolicited advertising by electronic mail (e-mail),

and would make several related changes.  

   This bill would become inoperative if federal law on this subject

is enacted. 

   Existing law provides for the regulation of advertising and

provides that a violation of those provisions is a crime.  This bill,

by creating additional prohibitions with regard to advertising,

would expand the scope of an existing crime, thereby imposing 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.

   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.

State-mandated local program:  yes.





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





  SECTION 1.  Section 17538.4 of the Business and Professions Code is

amended to read:

   17538.4.  (a) No person or entity conducting business in this

state shall facsimile (fax) or cause to be faxed, or electronically

mail (e-mail) or cause to be e-mailed, documents consisting of

unsolicited advertising material for the lease, sale, rental, gift

offer, or other disposition of any realty, goods, services, or

extension of credit unless:

   (1) In the case of a fax, that person or entity establishes a

toll-free telephone number that a recipient of the unsolicited faxed

documents may call to notify the sender not to fax the recipient any

further unsolicited documents.

   (2) In the case of e-mail, that person or entity establishes a

toll-free telephone number or valid sender operated return e-mail

address that the recipient of the unsolicited documents may call or

e-mail to notify the sender not to e-mail any further unsolicited

documents.

   (b) All unsolicited faxed or e-mailed documents subject to this

section shall include a statement informing the recipient of the

toll-free telephone number that the recipient may call, or a valid

return address to which the recipient may write or e-mail, as the

case may be, notifying the sender not to fax or e-mail the recipient

any further unsolicited documents to the fax number, or numbers, or

e-mail address, or addresses, specified by the recipient.

   In the case of faxed material, the statement shall be in at least

nine-point type.  In the case of e-mail, the statement shall be the

first text in the body of the message and shall be of the same size

as the majority of the text of the message.

   (c) Upon notification by a recipient of his or her request not to

receive any further unsolicited faxed or e-mailed documents, no

person or entity conducting business in this state shall fax or cause

to be faxed or e-mail or cause to be e-mailed any unsolicited

documents to that recipient.

   (d) In the case of e-mail, this section shall apply when the

unsolicited e-mailed documents are delivered to a California resident

via an electronic mail service provider's service or equipment

located in this state.  For these purposes "electronic mail service

provider" means any business or organization qualified to do business

in this state that provides individuals, corporations, or other

entities the ability to send or receive electronic mail through

equipment located in this state and that is an intermediary in

sending or receiving electronic mail.

   (e) As used in this section, "unsolicited e-mailed documents"

means any e-mailed document or documents consisting of advertising

material for the lease, sale, rental, gift offer, or other

disposition of any realty, goods, services, or extension of credit

that meet both of the following requirements:  

   (A)  

   (1)  The documents are addressed to a recipient with whom the

initiator does not have an existing business or personal

relationship.  

   (B)  

   (2)  The documents are not sent at the request of, or with

the express consent of, the recipient.

   (f) As used in this section, "fax" or "cause to be faxed" or

"e-mail" or "cause to be e-mailed" does not include or refer to the

transmission of any documents by a telecommunications utility or

Internet service provider to the extent that the telecommunications

utility or Internet service provider merely carries that transmission

over its network.

   (g) In the case of e-mail that consists of unsolicited advertising

material for the lease, sale, rental, gift offer, or other

disposition of any realty, goods, services, or extension of credit,

the subject line of each and every message shall include "ADV:" as

the first four characters.  If these messages contain information

that consists of unsolicited advertising material for the lease,

sale, rental, gift offer, or other disposition of any realty, goods,

services, or extension of credit, that may only be viewed, purchased,

rented, leased, or held in possession by an individual 18 years of

age and older, the subject line of each and every message shall

include "ADV:ADLT" as the first eight characters.

   (h) An employer who is the registered owner of more than one

e-mail address may notify the person or entity conducting business in

this state e-mailing or causing to be e-mailed, documents consisting

of unsolicited advertising material for the lease, sale, rental,

gift offer, or other disposition of any realty, goods, services, or

extension of credit of the desire to cease e-mailing on behalf of all

of the employees who may use employer-provided and

employer-controlled e-mail addresses.  

   (i) This section, or any part of this section, shall become

inoperative on and after the date that federal law is enacted that

prohibits or otherwise regulates the transmission of unsolicited

advertising by electronic mail (e-mail). 

  SEC. 2.  No reimbursement is required by this act pursuant to

Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

   Notwithstanding Section 17580 of the Government Code, unless

otherwise specified, the provisions of this act shall become

operative on the same date that the act takes effect pursuant to the

California Constitution.