BILL ANALYSIS �
SB 823
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Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 823 (Corbett) - As Amended: August 15, 2011
Policy Committee: Business and
Professions Vote: 6 - 0
Judiciary 6 - 3
Urgency: No State Mandated Local
Program:Reimbursable:
SUMMARY
This bill creates the Made in California Program within the
Governor's Office of Economic Development (GOED) and makes 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. Specifically,
this bill:
1)Creates the Made in California Program within GOED.
2)Makes it unlawful as an unfair method of competition to
designate a product as being made in California unless the
manufacturer participates in the Made in California Program.
3)Authorizes GOED to enter into voluntary marketing agreements
with California businesses that wish to participate in the
program and provide funding or in-kind contributions.
4)Creates the Made in California Fund in the State Treasury for
the purposes of funding the Made in California Program.
5)Requires an annual report to the Legislature beginning January
1, 2013.
FISCAL EFFECT
On-going costs would depend on the number of participants in the
program and the size of the program. GOED estimates those costs
to be somewhere between $300,000 and $500,000 General Fund.
Once the program is fully established, contributions from
SB 823
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participating businesses may help offset the General Fund costs
of the program.
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
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.
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 2011-12 budget for
the program assumes the marketing agreements will generate
approximately $1 million in revenue.
3)Related Legislation . AB 29 (John Perez) codifies the
Governor's Office of Economic Development and establishes its
powers and duties. That bill is currently pending in the
Senate Appropriations Committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081