Bill Text: CA SB1144 | 2023-2024 | Regular Session | Amended
Bill Title: Marketplaces: online marketplaces.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced) 2024-05-06 - May 6 hearing: Placed on APPR suspense file. [SB1144 Detail]
Download: California-2023-SB1144-Amended.html
Amended
IN
Senate
March 19, 2024 |
Introduced by Senator Skinner (Coauthors: Senators Min, Ochoa Bogh, Rubio, and Wiener) |
February 14, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
The bill would require the Department of Justice to create a searchable database named the California Online Market Anti-Theft (COMAT) system, which would receive, file, and make available specific information to law enforcement, including, among other things, the business names of online marketplaces and high-volume third-party sellers. The bill
would require the department to create a licensing system for online marketplaces and high-volume third-party sellers and assess a reasonable license fee, as specified, to cover the reasonable regulatory costs of developing, implementing, and maintaining the COMAT system and the licensing system. The bill would establish the COMAT Fund for these purposes.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares(a)It is the intent of the Legislature to curtail the dissemination of stolen property via the internet and to facilitate the recovery of stolen property by means of a uniform, statewide, and state-administered program for the regulation of online marketplaces that allows for the sale or resale of products to Californians.
(b)Vast and highly profitable online marketing companies have a responsibility to prevent the sale of stolen goods through their platforms, and have been making strides to prevent fencing of stolen goods. It is the intent of the Legislature to support that effort though the creation of a
searchable database to identify sellers of stolen goods, and to provide a statutory framework for the online marketers to ban illegal sale and illegal sellers from their networks.
(c)It is the intent of the Legislature that the cost of the system be supported by licensing fees paid by online marketplaces and high-volume sellers.
(d)Further, it is the intent of the Legislature that the online system be a valuable and accessible tool to allow law enforcement to identify stolen goods being resold via the internet, and to allow for prosecutions of those who sell stolen property.
SEC. 2.
Section 1749.8 of the Civil Code is amended to read:1749.8.
For purposes of this title:(b)“Department” means the Department of Justice.
(c)
(d)
(e)
(f)
(a)The department shall create the California Online Market Anti-Theft (COMAT) system to receive, file, and make available, through a searchable database, to state, regional, and local law enforcement agencies all of the following information:
(1)The business name of each online marketplace.
(2)The business name of each high-volume third-party seller.
(3)Whether the high-volume third-party seller has been certified pursuant to Section 1749.8.9.
(4)The stock keeping unit (SKU) for each consumer product advertised utilizing an online marketplace by a high-volume third-party seller.
(b)An online marketplace or high-volume third-party seller shall upload the SKU to the COMAT system for each consumer product that the high-volume third-party seller advertised utilizing the online marketplace.
(a)(1)The department shall create a system to license online marketplaces and high-volume third-party sellers.
(2)(A)The department shall levy an annual licensing fee on each online marketplace and each high-volume third-party seller.
(B)Fees may be tiered based on annual revenue.
(b)The licensing fee assessed pursuant to subdivision (a) shall be no more than is necessary to cover the reasonable regulatory costs to the department for developing, implementing, and maintaining the licensing system described in this section and the COMAT system described in Section
1740.8.6.
(a)The COMAT Fund, which shall be administered by the department, is hereby established in the State Treasury.
(b)All licensing fees collected by the department pursuant to Section 1749.8.7 shall be deposited into the COMAT Fund.
(c)The moneys in the COMAT Fund shall, upon appropriation by the Legislature, be used for the development, implementation, and maintenance of the COMAT system described in Section 1740.8.6 and the licensing system described in Section 1740.8.7.
SEC. 3.
Section 1749.8.4 of the Civil Code is amended to read:1749.8.4.
(a) A person or entity who violates any provision of this title shall be liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each violation, which may be assessed and recovered only in a civil action brought in the name of the people of the State of California by the AttorneySEC. 6.SEC. 4.
Section 1749.8.9 is added to the Civil Code, to read:1749.8.9.
(a) An online marketplace shall verify and(b)(1)To assist consumers, an online marketplace shall identify, on its internet website, the third-party sellers that are certified as operating in a legal and ethical manner.
(2)An online marketplace shall develop a means of making the certification required by paragraph (1) through which a third-party seller is able to prove that the consumer products that they sell are lawfully produced, procured, purchased, or acquired by the seller. At minimum, a seller shall be able to provide all elements required by Section 1749.8.1, as well as evidence of lawful production, procurement, or purchase in the forms of receipts, invoices, shopkeeping units (SKUs), serial numbers, or other evidence.
(c)
(d)