(a) The Made in California Program, a public and private collaboration, is hereby created within the Governor’s Office of Business and Economic Development. The purposes of the program are to encourage consumer product awareness and to foster purchases of high-quality products made in this state.

(b) (1) The office shall develop a program that permits a company to represent that a product is made in this state. To be eligible under the program, a company shall establish that the product is substantially made by an individual located in the state.

(2) For purposes of this section, “substantially made” means completing an act that adds at least 51 percent of a final product’s wholesale value by manufacture, assembly, fabrication, or production to create a final, recognizable product. “Substantially made” does not include the act of packaging a product.

(c) The program shall not apply to those agricultural products subject to the Buy California Program described in § 58750 of the Food and Agricultural Code.

(d) In accordance with the provisions of Chapter 1 (commencing with Section 58601) of Part 2 of Division 21 of the Food and Agricultural Code, the office may issue and make effective a marketing agreement, including, but not limited to, issuance of a Made in California label, and be advised by those California businesses willing to participate in the program on a voluntary basis via funding or in-kind contributions in a manner defined under the agreement.

(e) (1) As part of the Made in California Program, the office shall require each company to register with the office for use of the Made in California label.

(2) The company filing the registration shall submit a certification at least once every three years that the product is made in accordance with this section.

(3) The office may require a fee to accompany the registration. The fee shall be determined by the office, and shall not exceed the reasonable costs to the office in providing the services for which it is charged, including, but not limited to, the costs to implement the marketing program. Proceeds from the fee shall be deposited in the Made in California Fund established in subdivision (h).

(f) The office may accept monetary donations or other donations from businesses, nonprofit organizations, or individuals for the purpose of implementing the Made in California Program. These donations shall be deposited in the Made in California Fund established in subdivision (h).

(g) (1) Notwithstanding Section 10231.5, the office shall report to the Legislature on January 1, 2015, and each successive February 15, regarding all of the following:

(A) Program expenditures.

(B) Program progress.

(C) The number of companies registered for the Made in California label.

(D) The number of products registered for the Made in California label.

(E) The program fees collected.

(F) Ongoing priorities with the program.

(G) Any other information about the program that the office deems appropriate.

(2) The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted pursuant to Section 9795.

(h) The Made in California Fund is hereby created as a fund within the State Treasury. Notwithstanding Section 13340, funds deposited and maintained in the Made in California Fund that were donated pursuant to subdivision (f) are continuously appropriated, without regard to fiscal years, to the director, for the purposes of implementing the Made in California Program. Any other funds deposited and maintained in the Made in California Fund are available, subject to appropriation by the Legislature, for purposes of implementing the program.

(i) The Legislature finds and declares all of the following:

(1) If successful, the Made in California Program should be nearly or completely financially self-sustaining in the long term.

(2) It may take several years for the Made in California Program to demonstrate its value to businesses that make products in California.

(3) If the number of companies and products registered for the Made in California Program does not significantly increase by 2028, the state should strongly consider ending the program.

(Amended by Stats. 2023, Ch. 45, Sec. 21. (AB 127) Effective July 10, 2023.)