Bill by Assemblymember Gloria to Help Deregulate Small Businesses, Collectible Merchandise Advances

Tuesday, May 2, 2017

Legislation to Fix Flawed Memorabilia Law Unanimously Passes Assembly Privacy & Consumer Protection Committee

SACRAMENTO, CA – In connection with National Small Business Week, legislation authored by California State Assemblymember Todd Gloria (D-San Diego) that will relieve small businesses of unnecessary regulatory burdens and help protect consumers of autographed memorabilia received unanimous approval by the Assembly Committee on Privacy and Consumer Protection today with a vote of 7-0.

Small businesses across California have felt the unintended impacts of AB 1570, and it’s time for the Legislature to correct these overly burdensome regulations,” said Assemblymember Todd Gloria. “AB 228 addresses these problems by targeting bad actors and ensuring that we are protecting consumers from industries that have high levels of fraud. AB 228 provides an elegant solution to a complex problem, and I’m grateful for my colleague’s unanimous support today.”

AB 228 amends AB 1570 (Chang) which was signed into law last year and took effect on January 1, 2017. While the intent of AB 1570 was to deter sellers of autographed material from peddling counterfeit merchandise, AB 1570 was written so broadly that it overregulated small businesses, independent booksellers, and any Californian who possess a signed item.

AB 228 by Assemblymember Gloria rectifies this overregulation first by making several clarifications, including:

  • The definition of a “collectible” to mean any autographed item sold or offered in the categories of sports or entertainment related to music, television, or film.
  • The definition of a “dealer” to mean a person or business who is in the trade of selling collectibles and has sold three or more collectibles in either the current or previous year.

In addition, AB 228 requires dealers (as defined above) to provide an express warranty to consumers for financial redress should the sold item be fraudulent. Further, consumers will have the right to return collectibles (as defined above) within three days if they believe the item to be inauthentic. Lastly, AB 228 protects consumer privacy by requiring dealers to collect and store personal information instead of disclosing it to a third party as required under AB 1570.

AB 228 is joint-authored by Assemblymember David Chiu (D-San Francisco) and sponsored by the Antiquarian Booksellers Association of America. Supporters of AB 228 include Barnes & Noble, the Book Club of California, the Comic Book Legal Defense Fund, the Horror Writers Association, the Independent Online Booksellers Association, the Professional Autograph Dealers Association, and the Universal Autographed Collectors Club.

AB 228 is now awaiting a hearing by the Assembly Judiciary Committee.

Assemblymember Gloria represents the 78th Assembly District of California, which includes the Cities of Coronado, Del Mar, Imperial Beach, San Diego, and Solana Beach. He also serves as the Assistant Majority Whip. Assemblymember Gloria’s official, high-resolution photo can be downloaded here.

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FOR IMMEDIATE RELEASE
Contact: Nick Serrano, (619) 645-3090

050217 Asm Gloria Bill to Help Deregulate Small Businesses Advances in the Assembly.pdf