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Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)
AMENDED IN SENATE MAY 10, 2011

INTRODUCED BY Senator Padilla
(Coauthor: Senator Price)
(Coauthors: Assembly Members Blumenfield, Butler, Gatto, and
Hagman)

FEBRUARY 17, 2011

An act to amend Sections 21800, 21804, 21805, and 21806 of, to add
Section 21807 to, and to repeal and add Sections 21801, 21802, and
21803 of, the Business and Professions Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


SB 550, as amended, Padilla. Business: manufactured optical disc.
Existing law requires every person who manufactures an optical
disc, as defined, for commercial purposes to permanently mark the
manufactured optical disc with an identification mark or a unique
identifying code, as specified. Existing law sets forth various
definitions for purposes of these provisions. Existing law makes a
manufacturer that violates these provisions guilty of a crime
punishable by specified fines. Existing law also makes a person that
engages in specified prohibited acts in violation of these provisions
guilty of a crime punishable by specified fines or imprisonment.
This bill would recast the definitions applicable to these
provisions. The bill would prohibit a person who manufactures optical
discs for commercial purposes from possessing, owning, controlling,
or operating manufacturing equipment or any optical disc mold unless
it has been adapted to apply the appropriate identification mark or
unique identifying code. The bill would prohibit a person who
manufactures optical discs for commercial purposes from making,
possessing, or adapting any optical disc mold for the purpose of
applying a forged, false, or deceptive identification mark or
identifying code. The bill would authorize law enforcement officers
to perform inspections, as specified, at commercial optical disc
manufacturing facilities during regular business hours without a
warrant for the purpose of verifying compliance with these provisions
and would authorize law enforcement officers, in performing these
investigations, to seize any optical disc or production part
manufactured in violation of these provisions. The bill would require
a person manufacturing optical discs for commercial purposes to
maintain specified records. The bill would also increase the fines
applicable to a manufacturer or person that violates the provisions
regulating manufactured optical discs.
Because a violation of the bill's provisions by a person who
manufactures optical discs would be a crime, 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.
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 21800 of the Business and Professions Code is
amended to read:
21800. (a) Every person who manufactures an optical disc for
commercial purposes shall permanently mark each manufactured optical
disc with an identification mark that identifies the name of the
manufacturer and the state in which the optical disc was manufactured
or, alternatively, a unique identifying code that will allow law
enforcement personnel to determine the name of the manufacturer and
the state in which the optical disc was manufactured.
(b) The identification mark required by this section shall be
affixed by molding, diestamping, etching, or other permanent method
in a manner in which it is clearly visible without the aid of
magnification or special devices to read the mark.
SEC. 2. Section 21801 of the Business and Professions Code is
repealed.
SEC. 3. Section 21801 is added to the Business and Professions
Code, to read:
21801. (a) No person who manufactures optical discs for
commercial purposes shall (1) possess, own, control, or operate
manufacturing equipment or any optical disc mold unless it has been
adapted to apply the appropriate identification mark or unique
identifying code in accordance with this chapter, or (2) make,
possess, or adapt any optical disc mold for the purpose of applying
to an optical disc a forged or false identification mark or
identifying code, or any mark so similar to a manufacturer's
identification mark or identifying code as to be likely to deceive.
(b) Any manufacturing equipment, optical disc mold, or production
part found on the premises of a commercial manufacturer shall for the
purposes of this chapter be deemed to be in the possession of the
manufacturer.
SEC. 4. Section 21802 of the Business and Professions Code is
repealed.
SEC. 5. Section 21802 is added to the Business and Professions
Code, to read:
21802. For purposes of this chapter, the following terms shall
have the following meanings:
(a) "Commercial purposes" means the manufacture of at least 10 of
the same or different optical discs in a 180-day period by storing
information on the disc for the purposes of resale by that person or
others.
(b) "Manufacturer" means a person who replicates the physical
optical disc or produces the master used in any optical disc
replication process. It does not include a person who manufactures
optical discs for internal use, testing, or review, or a person who
manufactures blank optical discs.
(c) "Manufacturing equipment" means any machine, equipment, or
device, including mastering equipment, used for the manufacture of
optical discs or production parts in accordance with this chapter.
(d) "Mastering equipment" means any machine, equipment, or device
used for the mastering of optical discs or production parts
consisting of a signal processor and laser beam recorder or any other
recorder, used to record data onto the glass or polymer master disc
from which production parts are produced, or to record data directly
onto a production part.
(e) "Optical disc" means a disc capable of being read by a laser
or other light source on which data is stored in digital form. It
includes, but is not limited to, discs known as CDs, DVDs, or related
mastering source materials. It does not include blank optical discs.

(f) "Production part" means the item usually referred to as a
stamper that embodies data in a digital form and is capable of being
used to mold optical discs, and includes any other item, usually
referred to as a master, father or mother, embodying data from which
a stamper may be produced by means of an electroplating process.
(g) "Professional organization" means an organization whose
membership consists wholly or substantially of intellectual property
rights owners, and which is mandated by those members to enforce
their rights against counterfeiting and piracy.
SEC. 6. Section 21803 of the Business and Professions Code is
repealed.
SEC. 7. Section 21803 is added to the Business and Professions
Code, to read:
21803. (a) Law enforcement officers are authorized to perform
inspections at commercial optical disc manufacturing facilities to
verify compliance with the provisions of this chapter. Any inspection
may be carried out with the assistance of a professional
organization designated by law enforcement
shall be
conducted by officers whose primary responsibilities include
investigation of high-technology crime or intellectual property
piracy
. Inspections shall take place during regular business
hours and shall be limited to the areas of the premises where
manufacturing equipment is located and where optical discs and
production parts are manufactured and stored. The scope of the
inspection shall be restricted to the physical review of items and
collection of information necessary to verify compliance with the
provisions of this chapter. Officers performing inspections may do so
without providing prior notice or obtaining a warrant, and shall
have the authority to do all of the following:
(1) Take an inventory of all manufacturing equipment, including
the identification mark or unique identifying code that any piece of
equipment has been modified to apply.
(2) Review any optical disc, manufacturing equipment, optical disc
mold, or production part.
(3) Review any record, book, or document maintained under Section
21807, kept in any format, electronic or otherwise, relating to the
business concerned.
(4) Inspect, remove, and detain for the purpose of examination for
as long as reasonably necessary any optical disc, production part,
or record, book, or document maintained under Section 21807.
(5) Seize any optical disc or production part manufactured in
violation of this chapter.
(6) Obtain and remove four samples each of the optical discs
molded by each mold that has been used or could be used to
manufacture optical discs.
(b) No person shall evade, obstruct, or refuse any inspection
requested or being carried out by a law enforcement officer to
determine compliance with this chapter. The manufacturer, and the
employees, servants, or agents of the manufacturer, shall cooperate
during the course of the inspection by promptly doing all of the
following:
(1) Providing and explaining any record, book, or document
required to be maintained pursuant to Section 21807.
(2) Pointing out and providing access to all optical discs,
manufacturing equipment, optical disc molds, and production parts and
demonstrating to the satisfaction of the officer that they include
or have been adapted to apply the required identification mark or
unique identifying code.
(3) Providing and permanently surrendering four samples each of
the optical discs molded by each mold that has been used or could be
used to manufacture optical discs.
SEC. 8. Section 21804 of the Business and Professions Code is
amended to read:
21804. Except as otherwise provided in this chapter, any
manufacturer of optical discs who violates this chapter is guilty of
a misdemeanor, and shall be subject to a fine of not less than two
thousand five hundred dollars ($2,500) and not more than twenty-five
thousand dollars ($25,000) for a first offense, and shall be subject
to a fine of not less than twenty-five thousand dollars ($25,000) nor
more than two hundred fifty thousand dollars ($250,000) for a second
or subsequent offense.
SEC. 9. Section 21805 of the Business and Professions Code is
amended to read:
21805. Any person who buys, sells, receives, transfers, or
possesses for purposes of sale or rental an optical disc knowing that
the identification mark required by this chapter has been removed,
defaced, covered, altered, or destroyed, or knowing it was
manufactured in California without the required identification mark,
or knowing it was manufactured in California with a false
identification mark is guilty of a misdemeanor punishable by
imprisonment in a county jail for a term not exceeding one year, or
by a fine of not less than one thousand dollars ($1,000) nor more
than ten thousand dollars ($10,000), or by both the fine and
imprisonment.
SEC. 10. Section 21806 of the Business and Professions Code is
amended to read:
21806. Any person who knowingly removes, defaces, covers, alters,
or destroys the identification mark required by this chapter is
guilty of a misdemeanor punishable by imprisonment in a county jail
for a term not exceeding one year, or by a fine of not less than one
thousand dollars ($1,000) nor more than ten thousand dollars
($10,000), or by both the fine and imprisonment.
SEC. 11. Section 21807 is added to the Business and Professions
Code, to read:
21807. (a) Every person who manufactures optical discs for
commercial purposes shall keep full and accurate records of its
manufacturing equipment, and shall make them available to law
enforcement for inspection pursuant to this chapter. The records
shall include a current inventory of manufacturing equipment, and
every purchase, lease, sale, disposal, or other transaction relating
to any manufacturing equipment, specifying the make, model, and
serial number of the equipment, the identification mark or unique
identifying code which the equipment has been adapted to apply, the
date and nature of each transaction, and the full name and address of
the party with whom the transaction was entered into.
(b) Every person who manufactures optical discs for commercial
purposes shall keep all of the following, for a period of not less
than five years from the date of production:
(1) One sample of each optical disc title manufactured by it.
(2) One copy in a retrievable form of the content of each
production part manufactured by it.
(3) The name and physical address of the customer, or if the order
was placed by an intermediary, the name and physical address of the
actual customer who originated the order.
SEC. 12. 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.