Amended in Senate April 14, 2015

Senate BillNo. 633


Introduced by Senator Hill

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(Coauthor: Senator De León)

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February 27, 2015


An actbegin delete relating to consumer protection.end deletebegin insert to amend Section 17533.7 of the Business and Professions Codeend insertbegin insert, relating to false advertising.end insert

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.

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This bill would declare the intent of the Legislature to enact legislation that would update the “Made in U.S.A.” labeling standard to allow California based companies that manufacture their products within the state while employing state residents to utilize this label even if their products contain insignificant components not available in the United States.

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This bill, instead, 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.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insertSECTION 1.end insert  

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begin insertSection 17533.7 of the end insertbegin insertBusiness and Professions
2Code
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begin insert is amended to read:end insert

3

17533.7.  

begin insert(a)end insertbegin insertend insertIt is unlawful for any person, firm, corporation
4or association to sell or offer for sale in thisbegin delete Stateend deletebegin insert stateend insert any
5merchandise on which merchandise or on its container there
6appears the words “Made inbegin delete U.S.A.”end deletebegin insert U.S.A.,end insertbegin insertend insert “Made in America,”
7“U. S.A.,” or similar wordsbegin delete whenend deletebegin insert unlessend insert the merchandisebegin delete or any
8article, unit, or part thereof,end delete
has beenbegin delete entirely or substantially made,
9manufactured, or produced outside of end delete
begin insert all or virtually all made inend insert
10 the United States.

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11(b) For purposes of subdivision (a), merchandise that is “all or
12virtually all” made in the United States has the same meaning as
13in the Enforcement Policy Statement on U.S. Origin Claims issued
14by the Federal Trade Commission (62 Fed. Reg. 63756 (Dec. 2,
151997)).

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16

SECTION 1.  

It is the intent of the Legislature to enact
17legislation that would update California’s “Made in U.S.A.”
18labeling standard, which was enacted in 1961, to allow California
19based companies that manufacture their products within the state
20while employing state residents to utilize the “Made in the U.S.A.”
21label even if their products contain insignificant components that
22are not available in the United States.

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