Amended in Senate April 2, 2013

Senate Bill No. 661

Introduced by Senator Hill

February 22, 2013

An act to amend Section begin delete 1747.01 end delete begin insert 17533.7 end insert of the begin delete Civil end delete begin insert Business and Professions end insert Code, relating to begin delete credit cards end delete begin insert advertising end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 661, as amended, Hill. begin delete Credit cards. end delete begin insert False advertising. end insert

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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.

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This bill would eliminate the requirement that any article, unit, or part of the merchandise also 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 further provide that any merchandise has been substantially made, manufactured, or produced within the United States if specified requirements are met, including that United States manufacturing costs constitute 75% of the total manufacturing costs for the merchandise and the merchandise was last substantially transformed in the United States.

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The Song-Beverly Credit Card Act of 1971 expresses the intent of the Legislature that certain provisions of the act that are similar to specified federal provisions essentially conform and be interpreted to conform to those federal provisions.

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This bill would make technical, nonsubstantive changes to this provision.

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

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 17533.7 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

17533.7.  

begin insert (a) end insert begin insert   end insert It is unlawful for any person, firm, corporation
or association to sell or offer for sale in this begin delete State end delete begin insert state end insert any
merchandise on which merchandise or on its container there
appears the words “Made in begin delete U.S.A.” end delete begin insert U.S.A., end insert begin insert ” end insert “Made in America,”
begin delete “U. S.A.,” end delete begin insert “U.S.A.,” end insert or similar words when the merchandise begin delete or
any article, unit, or part thereof, end delete has been entirely or substantially
made, manufactured, or produced outside of the United States.

begin insert

(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:

end insert begin insert

(1) United States manufacturing costs constitute 75 percent of
the total manufacturing costs for the merchandise.

end insert begin insert

(2) No more than 25 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 same component, part, article,
or unit of the merchandise from a domestic manufacturer.

end insert begin insert

(3) The merchandise was last substantially transformed in the
United States.

end insert

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SECTION 1.  

Section 1747.01 of the Civil Code is amended
to read:

1747.01.  

It is the intent of the Legislature that the provisions
of this title as to which there are similar provisions in the federal
Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.),
essentially conform, and be interpreted by anyone construing the
provisions of this title to conform to the Truth in Lending Act and
any rule, regulation, or interpretation promulgated thereunder by
the Board of Governors of the Federal Reserve System, and any
interpretation issued by an official or an employee of the Federal
Reserve System duly authorized to issue such interpretation.

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