BILL NUMBER: SB 633	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 19, 2015
	AMENDED IN SENATE  APRIL 14, 2015

INTRODUCED BY   Senator Hill
   (Coauthor: Senator De León)

                        FEBRUARY 27, 2015

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 633, as amended, Hill. Consumer protection: "Made in U.S.A."
label.
   Existing law prohibits the sale or offering of sale in the state
of any merchandise on which merchandise or on its container 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.
   This  bill, instead,   bill  would
 make 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 unless the
merchandise has been all or virtually all made in the United States,
and provides that "all or virtually all" has the same meaning as in a
specified policy statement of the Federal Trade Commission 
 exempt from the prohibition merchandise made, manufactured, or
produced in the United States if either the merchandise has an
article, unit, or part that does not constitute more than 5% of the
final product or the manufacturer makes a specified showing and the
article, unit, or part does not constitute more than 10% of the final
product. The bill would also exempt merchandise sold for resale to
consumers outside of the state  .
   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 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
 unless the merchandise has been all or virtually all made in
  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) For purposes of subdivision (a), merchandise that is "all or
virtually all" made in the United States has the same meaning as in
the Enforcement Policy Statement on U.S. Origin Claims issued by the
Federal Trade Commission (62 Fed. Reg. 63756 (Dec. 2, 1997)).
 
   (b) This section 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 the article,
unit, or part of the merchandise obtained from outside the United
States constitutes not more than 5 percent of the final manufactured
product.  
   (c) (1) This section 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 shows 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 not more than 10 percent 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.  
   (d) This section shall not apply to merchandise sold for resale to
consumers outside of California.  
   (e) For purposes of this section, goods sold or offered for sale
outside of California shall not be deemed mislabeled if the label
conforms to the law of the forum state or country within which they
are sold or offered for sale.