BILL NUMBER: AB 890	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 14, 2013

INTRODUCED BY   Assembly Member Jones
    (   Principal coauthor:   Senator 
 Hill   ) 

                        FEBRUARY 22, 2013

   An act to amend Section 17533.7 of the Business and Professions
Code, relating to advertising.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 890, as amended, Jones. False advertising.
   Existing law makes it unlawful for any person, firm, corporation,
or association to sell, or offer for sale, merchandise that
advertises itself as being made or manufactured in the United States
when any article, unit, or part of the merchandise has been entirely
or substantially made, manufactured, or produced outside of the
United States. 
   This bill would provide that a product that is made all or
virtually all in the United States, within the meaning of a specified
policy statement of the Federal Trade Commission, shall be deemed
made within the United States, as specified. The bill would also
state the intent of the Legislature in enacting the bill. 

   This bill would eliminate the requirement that any article, unit,
or part of the merchandise be substantially manufactured in the
United States in order for the merchandise to advertise that it is
made in the United States. The bill would deem any merchandise to be
substantially made, manufactured, or produced within the United
States if specified requirements are met, including that United
States manufacturing costs constitute at least 90% of the total
manufacturing costs for the merchandise and that the merchandise was
last substantially transformed or assembled in the United States.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    It is the intent of the Legislature
in enacting this measure to clarify existing state law with respect
to federal law in order to improve this state's ability to
successfully compete with other states and nations for jobs,
investments, and manufacturing. 
   SEC. 2.   SECTION 1.   Section 17533.7
of the Business and Professions Code is amended to read:
   17533.7.  (a)  It is unlawful for any person, firm, corporation,
or association to sell or offer for sale in this  State
  state  any merchandise on which merchandise or on
its container there appears the words "Made in U.S.A.," "Made in
America," "U.S.A.," or similar words when the merchandise  or
any article, unit, or part thereof,  has been entirely or
substantially made, manufactured, or produced outside of the United
States. 
   (b) For purposes of subdivision (a), a product that is made all or
virtually all in the United States, within the meaning of the
Enforcement Policy Statement on U.S. Origin Claims issued by the
Federal Trade Commission (62 Fed. Reg. 63756 (Dec. 2, 1997)), shall
be deemed merchandise that has been entirely or substantially made,
manufactured, or produced within the United States.  
   (b) For purposes of this section, any merchandise has been
substantially made, manufactured, or produced within the United
States if it meets all of the following requirements:  
   (1) United States manufacturing costs constitute at least 90
percent of the total manufacturing costs for the merchandise. 

   (2) At least 90 percent of the components, parts, articles, or
units of the merchandise were manufactured in the United States.
 
   (3) No more than 10 percent of the total manufacturing costs for
the merchandise were either incurred outside of the United States as
a result of the unavailability of raw materials in the United States,
or incurred as the costs of a component, part, article, or unit of
the merchandise imported into the United States as a result of the
unavailability of the component, part, article, or unit of the
merchandise from a domestic manufacturer.  
   (4) No more than 10 percent of the components, parts, articles, or
units of the merchandise were manufactured outside of the United
States as a result of the unavailability of raw materials in the
United States, or the component, part, article, or unit of the
merchandise was imported into the United States as a result of the
unavailability of the component, part, article, or unit of the
merchandise from a domestic manufacturer.  
   (5) The merchandise was last substantially transformed or
assembled in the United States.