1. (a) “Applicant” means any sole proprietor, corporation, partnership, 501(c) non-profit, or any other business entity type applying for the Made in California Label that is legally authorized to do business in California.
2. (b) “Application” means the request by an Applicant for the Made in California License.
3. (c) “Application Form” means the form designated by GO-Biz, which shall contain the information requested in Section 8110(c) through (e).
4. (d) “Application Portal” means a GO-Biz-designated application portal.
5. (e) “Attestation” means a self-certification statement signed under penalty of perjury and submitted as part of the Application that attests that the Product(s) entered in the Product Database and/or utilizing the Made in California Label complies with the Program.
6. (f) “Brand Guidelines” means the general standards issued by GO-Biz governing licensees' authorized use of the Made in California Label, as specified in the “Made in California Brand Guidelines 2026”, which is hereby incorporated by reference.
7. (g) “California Value-Added Share” means the ratio of Wholesale Value of a product divided by the Total Product Cost of that product.
8. (h) “Certification Term” means the two (2) year term beginning on the date of execution of the Licensing Agreement.
9. (i) “Contract Manufacturer” means a company hired or contracted to produce goods or components, or package products on behalf of another business. These companies typically manage the transformation of raw materials or ingredients supplied by the client into finished products, often handling the entire production and packaging process to prepare them for sale.
10. (j) “Direct Labor Cost” means Salary paid to workers who are directly involved in the production of goods and whose efforts can be directly traced to the production of specific products, as well as supervisors or managers of those employees. Direct Labor Cost is assigned to a specific product, cost center, or work center.
11. (k) “Direct Material Cost” means the cost of raw materials, standard and specialized parts, and components required to assemble, fabricate or manufacture a complete product and which can be easily identified with the complete product. Cost of packaging cannot be included.
12. (l) “Fee” or “Fees” means the Made in California fee charged to Licensees by GO-Biz every two (2) years.
13. (m) “Fixed Overhead Cost” means expenses not directly related to active conversion of materials to a finished product. Allowable fixed overhead costs include, but are not limited to: rent, insurance premiums, and depreciation. Fixed overhead costs do not include Research and Development costs or packaging costs.
14. (n) “GO-Biz” means Governor's Office of Business and Economic Development.
15. (o) “Indirect Labor Cost” means Salary paid to workers to support the production process, but who are not directly involved in the active conversion of materials into finished products.
16. (p) “Indirect Material Cost” means the cost of materials used in the production process, but which cannot be linked to a specific product or job.

17. (q) “Ineligibility Conditions” means the following:

    1. (1) Businesses that do not have their Product(s) manufactured, fabricated, produced, or assembled at a facility located in California;
    2. (2) Businesses primarily engaged in political or lobbying activities, regardless of whether the entity is registered as a 501(c)(3), 501(c)(6), or 501(c)(19);
    3. (3) Businesses engaged in any activity that is unlawful under federal, state, or local law;
    4. (4) Businesses that restrict patronage for any reason other than capacity;

    5. (5) Businesses where the owner has, within the prior three years:

       1. (A) Been convicted of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract;
       2. (B) Had a civil judgment rendered against the owner for fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract;
       3. (C) Commenced any form of parole or probation, including probation before judgment, for any offense described in subparagraph (A), (B), (D), or (E);
       4. (D) Been convicted of or had a civil judgment rendered against the owner for a violation of federal or state antitrust statutes or procurement statutes; or
       5. (E) Been convicted of or had a civil judgment rendered against the owner for commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
    6. (6) Businesses where the owner is presently indicted for or otherwise criminally or civilly charged by a federal, state, or local government entity, with commission of any of the offenses enumerated in subparagraphs (q)(5)(A), (B), (D), or (E); and
    7. (7) Other businesses determined to be ineligible by GO-Biz for reasons of incomplete, confusing, or misleading information submitted through the Application Form.
18. (r) “License” means the right to use the Made in California Label as permitted by GO-Biz in the Licensing Agreement.
19. (s) “Licensee” means an Applicant who has entered into a Licensing Agreement with GO-Biz for the use of the Made in California Label.
20. (t) “Licensing Agreement” means the written agreement between a Licensee and GO-Biz describing the terms and conditions of using the License.
21. (u) “Made in California Fund” means a separate account created and maintained for deposit of fees associated with the Program, as described in Government Code section 12098.10(h).
22. (v) “Made in California Label” means an authorized seal designated by GO-Biz and representing that the Product is certified to meet the minimum requirements pursuant to the Program.
23. (w) “Product” or “Products” mean a final, recognizable good that has been created by a value-added process. It shall also refer to a line or related group of products.
24. (x) “Product Database” means a database of all Licensees and all Products authorized to use the Made in California Label.
25. (y) “Program” means the Made in California program created by Government Code section 12098.10 et seq.
26. (z) “Research and Development” means work directed toward the innovation, introduction, and improvement of products and processes.
27. (aa) “Salary” means the amount of monetary compensation that is paid to a worker in return for work performed but does not include tips, overtime, bonuses, benefits, or other compensation of any kind.
28. (bb) “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.
29. (cc) “Total Product Cost” is calculated by the summation of the following: (1) the Wholesale Value; (2) Direct and Indirect Material Cost generated from outside California; and (3) Direct and Indirect Labor Cost generated from outside California.
30. (dd) “Website” means GO-Biz's designated website.
31. (ee) “Wholesale Value” is calculated by the summation of the following: (1) the Applicant's Direct Labor Cost generated by a cost or work center located in California; (2) the Applicant's Direct Material Cost generated by a cost or work center located in California; and (3) the Applicant's Fixed Overhead Cost generated by a cost or work center located in California.

For purposes of this article, the following definitions shall apply:

Note: Authority cited: Sections 12098.10 and 12098.11, Government Code. Reference: Sections 12098.10 and 12098.11, Government Code.

History

1. New article 2 (sections 8100-8150) and section filed 6-7-2016; operative 6-7-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 24).

2. Amendment filed 6-5-2026; operative 6-5-2026 pursuant to Government Code section 11343.4(b)(3) (Register 2026, No. 23).