BILL ANALYSIS Ó 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 Page 2 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