BILL ANALYSIS �
SB 12
Page 1
Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 12 (Corbett) - As Amended: June 26, 2013
Policy Committee: Business and
Professions Vote: 8 - 4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Made in California Program within the
Governor's Office of Business and Economic Development (GO-Biz)
to promote products manufactured in California, and authorizes
GO-Biz to develop and adopt standards that would permit a
company to represent that a product is made in California.
FISCAL EFFECT
1)On-going costs would depend on the number of participants in
the program and the size of the program. GO-Biz estimates
those costs to be approximately $500,000 GF per year. Once
the program is fully established, contributions from
participating businesses may help offset the GF costs of the
program. However, it is unlikely the fee would be sufficient
to fully offset the GF costs.
2)It is unclear from the current language whether or not GO-Biz
will be required to enforce, audit or investigate companies
that participate in the program to ensure the products meet
the adopted standards. Should GO-Biz be required to take on
that function, costs would likely exceed several million per
year.
COMMENTS
1)Purpose . 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 author envisions a
SB 12
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public/private partnership marketing program that is funded by
the participating industries and run by the state in order to
promote products that are manufactured in California.
2)Buy California Marketing Program . 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, consumption and value of
California agricultural products.
The California Grown campaign is funded by the Buy California
Initiative, the California Department of Food and Agriculture,
the U.S. Department of Agriculture, and by BCMA's member
organizations, including the California Table Grape Commission
and the California Avocado Commission. The 2012-13 budget for
the program assumed the marketing agreements would generate
approximately $200,000 in revenue.
3)Related Legislation . In 2011, SB 823 (Corbett) would have
created a "Made in California" program within the Governor's
Office of Economic Development. That bill was held on this
committee's Suspense File.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081