BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 85
                                                                  Page  1


           (Without Reference to File)
           
          ASSEMBLY THIRD READING
          ACR 85 (Torrico)
          As Introduced July 23, 2009
          Majority vote 

           SUMMARY  :   Memorializes the Legislature's intent to take swift  
          and decisive action to protect California workers and industries  
          including utilizing its vested powers to keep the New United  
          Motor Manufacturing Inc. (NUMMI) facility open.  

           EXISTING LAW  authorizes a variety of economic and workforce  
          development incentives including, but not limited to:

          1)Designating an area as an enterprise zone and other  
            geographically targeted economic development area;

          2)Designating an area as a Free Trade Zone;

          3)Offering preferences for state procurement contracts;

          4)Providing funding for workforce training; 

          5)Authorizing income tax credits; and,

          6)Streamlining state permitting requirements.

           FISCAL EFFECT  :   None

           COMMENT  :  The purpose of this resolution is to formally  
          recognize the Legislature's intent and desire to use its vested  
          powers to retain the last auto manufacturing plant in  
          California.  As part of its bankruptcy proceedings, General  
          Motors (GM) is ending its 25-year joint venture with Toyota  
          Motor Corporation (Toyota) at NUMMI.  Given the current global  
          economic situation and Toyota's reported $4.4 billion year-end  
          loss, Toyota is also considering whether it will abandon the  
          380-acre NUMMI facility in Fremont, California.  

          Should NUMMI close, thousands of workers would become unemployed  
          at NUMMI and in the various supply houses that support the  
          plant.  According to news reports, California officials have  
          been in contact with Toyota and letters have been written to  
          Washington D.C. regarding the federal government's majority  







                                                                  ACR 85
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          investor position at GM and the potential impact the NUMMI  
          closure would have on California.  


          When fully operational, the NUMMI facility produces 250,000 cars  
          and 170,000 trucks on an annual basis includign the Pontiac  
          Vibe, the Toyota Corolla and Toyota Tacoma.  Operations at the  
          facility are supported by 4,700 plant workers and 3,600 North  
          American suppliers, 1,000 of which, are located in California.    
          The 1,000 NUMMI suppliers, vendors and small-parts manufacturers  
          in California employ approximately 15,000 workers and provide  
          $523 million in annual payroll and benefits.




           Analysis Prepared by  :    Toni Symonds / J., E.D. & E. / (916)  
          319-2090                                                 FN:  
          0002068