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
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            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