BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 12 (Corbett) - Consumer Affairs
          
          Amended: As Introduced          Policy Vote: Judiciary 5-2,  
          BP&ED 9-0
          Urgency: No                     Mandate: No
          Hearing Date: April 29, 2013                            
          Consultant: Robert Ingenito     
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 12 would establish the Made in California  
          Program within the Governor's Office of Economic Development  
          (GO-Biz) for the purpose of fostering the purchase of products  
          made in California. Additionally, the bill would make it an  
          unfair method of competition or an unfair or deceptive business  
          practice to use a designated "Made in California" label without  
          participating in the Made in California Program. 

          Fiscal Impact: Costs would depend on the size of the program and  
          number of participants. GO-Biz estimates ongoing costs to be  
          roughly $500,000 (General Fund), consisting of three people to  
          administer the program and an annual marketing budget of  
          $200,000. Once the program is fully established, contributions  
          from participating businesses and donations may help offset the  
          General Fund costs of the program.

          Background: The intent of this legislation is to create a made  
          in California marketing program for goods manufactured in  
          California that is similar to the state's Buy California  
          marketing organization which encourages Californians to purchase  
          California grown foods. The result could be a public/private  
          partnership marketing program that is funding by the  
          participating industries and run by the State in order to  
          promote products that are manufactured in California.

          The Buy California Marketing Agreement (BCMA) was created in  
          2001 and is a joint effort of industry groups representing the  
          products of California's farms, ranches, forests and fisheries.  
          Structured as an industry advisory board to the California  
          Department of Food and Agriculture, BCMA brings together  
          industry and government resources to increase the awareness,  








          SB 12 (Corbett)
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          consumption and value of California agricultural products.

          Related Legislation: A similar bill, SB 823 (Corbett, 2011) was  
          held in the Assembly Appropriations Committee.

          Staff Comments: There is no source of funding identified for the  
          Made in California Fund established by this bill.  Presumably,  
          the program will operate similar to the "Buy California"  
          program, a public and private collaboration within the  
          Department of Food and Agriculture.  That program received  
          significant startup funding and now operates on industry  
          self-assessments pursuant to Food and Agricultural Code 58750  
          which authorizes the Secretary of Agriculture to issue a  
          marketing agreement with those elements of the production  
          agriculture and food processing industry willing to participate  
          in the program via co-funding or in-kind contributions in a  
          manner defined under the agreement.