BILL NUMBER: SB 661	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014
	AMENDED IN SENATE  APRIL 29, 2013
	AMENDED IN SENATE  APRIL 2, 2013

INTRODUCED BY   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


   SB 661, as amended, Hill. 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 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 90% of the total
manufacturing costs for the merchandise and the merchandise was last
substantially transformed in the United States. The bill would also
create a rebuttable presumption that the merchandise has been
substantially made, manufactured, or produced within the United
States if an independent 3rd-party verification organization
certifies that the merchandise meets all of these requirements.
 
   This bill would establish an exception to these provisions by
authorizing a person, firm, corporation, or association to sell or
offer for sale in this state any merchandise labeled as being made in
the United States if the merchandise is made, manufactured, or
produced in the United States and has an article, unit, or part from
outside of the United States that cannot be obtained within the
United States, as specified, and constitutes only a negligible part
of the final manufactured product. 
   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.    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
  if  the merchandise or any article, unit, or part
thereof, has been entirely or substantially made, manufactured, or
produced outside of the United States. 
   (b) (1) Subdivision (a) shall not apply to merchandise made,
manufactured, or produced in the United States that has an article,
unit, or part from outside of the United States, if both of the
following apply:  
   (A) The manufacturer of the merchandise certifies that it can
neither produce the article, unit, or part within the United States
nor obtain the article, unit, or part of the merchandise from a
domestic source.  
   (B) The article, unit, or part of the merchandise obtained from
outside the United States constitutes only a negligible part of the
final manufactured product.  
   (2) The determination that the article, unit, or part of the
merchandise cannot be made, manufactured, produced, or obtained
within the United States from a domestic source shall not be based on
the cost of the article, unit, or part.  
  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 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 has been entirely or substantially made,
manufactured, or produced outside of 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 90 percent of the
total manufacturing costs for the merchandise.
   (2) 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 same component, part, article, or unit of the
merchandise from a domestic manufacturer.
   (3) The merchandise was last substantially transformed in the
United States.
   (c) Certification by an independent third-party verification
organization that the merchandise meets all of the requirements of
subdivision (b) shall create a rebuttable presumption, affecting the
burden of producing evidence, that the merchandise has been
substantially made, manufactured, or produced within the United
States.