BILL ANALYSIS
AB 1460
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Date of Hearing: January 13, 2010
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
V. Manuel Perez, Chair
AB 1460 (Economic Development Committee) - As Amended: January
11, 2010
SUBJECT : International relations code maintenance
SUMMARY : Makes technical changes to the codes relating to
international trade and foreign investment. Specifically, this
bill reorganizes the Government Code by shifting the placement
of the Office of California-Mexico Affairs from a general title
of state government to a more specific title on foreign
relations.
EXISTING LAW establishes the Office of California-Mexico Affairs
to serve as a clearinghouse for information and assistance to
other state agencies involved with Mexico, and to develop
favorable relations with Mexico.
FISCAL EFFECT : None
COMMENTS :
1)Purpose of the bill : This bill reorganizes the Government
Code by shifting the placement of the Office of
California-Mexico Affairs from a general title of state
government to a more specific title on foreign relations, for
the purpose of having one comprehensive code for the state's
international trade activities and programs. This language
was originally included in AB 1719 (Economic Development
Committee) which was taken in the Senate through hostile
amendments. There are no new provisions being added to the
law by this legislation. The bill is technical in nature.
2)Need for a comprehensive code section on international trade :
International trade-related commerce represents approximately
one-quarter of California's $1.8 trillion economy.
California-made exports directly account for about 8% of gross
state product. If California were a country, it would be the
11th largest exporter in the world.
The state leads the nation in export-related jobs. According to
U.S. Department of Commerce estimates, for every one million
AB 1460
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dollars of increased trade activity, 11 new jobs are
supported. Workers in trade related industries earn, on
average, 13% to 28% higher wages than the national average.
Besides the production of exported products, foreign trade
results in numerous port-related jobs, such as wholesale
trade, warehousing, and transportation.
During the 2005-06 Legislative Session, significant changes were
made in the area of international trade and development. Most
significantly, SB 1513 (Romero), was signed by the Governor -
Chapter 663, Statutes of 2006, which re-established statutory
authority for the Business, Transportation and Housing (BTH)
Agency to conduct international trade and foreign investment
activities. The bill also established a new statutory title
relating to foreign relations.
During deliberations on the re-establishment of trade authority
for BTH, concerns were raised that the state lacked a
comprehensive or even generally understandable statutory
scheme related to trade and foreign relations. This bill
furthers the work that was begun in SB 1513 by making related
technical changes to the Government Code.
3)Related legislation : Below is a list of bills relating to
international trade.
a) AB 89 (Garcia) : This bill would have required BTH to
prepare a study by January 1, 2010, regarding
infrastructure development along the California/Mexico
border, including an assessment of whether alternative
financing mechanisms may be necessary to meet the
development needs of the bi-national region. Status: The
international trade language was removed after the bill
left the Assembly. Vetoed by the Governor in 2008.
b) AB 1722 (Committee on Jobs, Economic Development, and
the Economy) : This bill would have required BTH to provide
the Legislature with a copy of the international trade and
investment policy, which is a result of its work on the
required international trade study and strategy. Status:
Vetoed by the Governor in 2008.
c) AB 402 (Dymally) : This bill requires the Office of
California-Mexico Affairs to establish a migrant advisory
committee to focus upon issues confronted by people
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migrating from Mexico to California. Status: The
international trade language was removed after the bill
left the Assembly. Signed by the Governor - Chapter 496,
Statues of 2006.
d) AB 3021 (Nu?ez ): This bill establishes the six-member
California-Mexico Border Relations Council (Border Council)
comprised of all Agency Secretaries and the Director of the
Office of Emergency Services for the purpose of coordinating
activities of state agencies. The Border Council is
required to report to the Legislature on its activities
annually. Status: Signed by the Governor - Chapter 621,
Statutes of 2006.
e) SB 1513 (Romero) : Provides new authority for the BTH to
undertake international trade and investment activities, and
as a condition of that new authority, directs the
development of a comprehensive international trade and
investment policy for California. This bill reflects
extended bi-partisan discussions between the Senate and the
Assembly. Based on these agreements, AB 2601 was dropped to
allow a single consensus bill on international trade which
provides an organizational structure for trade to be sent to
the Governor. Status: Signed by the Governor -Chapter 663,
Statutes of 2006.
f) AB 1558 (Economic Development Committee): This bill makes
technical changes to the codes relating to international
trade and foreign investment. Specifically, this bill
reorganizes the Government Code by shifting the placement of
the Office of California-Mexico Affairs from a general title
of state government to a more specific title on foreign
relations. Status: The contents of the bill were deleted
and amended to restructure all economic workforce
development programs into a new governing department.
Senate Floor.
REGISTERED SUPPORT / OPPOSITION :
Support
Assembly Committee on Jobs, Economic Development, and the
Economy (sponsor)
Opposition
AB 1460
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None received
Analysis Prepared by : Toni Symonds/ Mercedes Flores / J.,
E.D. & E. / (916) 319-2090