BILL ANALYSIS Ó
AB 1409
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ASSEMBLY THIRD READING
AB 1409 (Jobs, Economic Development and the Economy Committee)
As Amended April 25, 2011
Majority vote
ECONOMIC DEVELOPMENT 5-0 APPROPRIATIONS 17-0
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|Ayes:|V. Manuel Pérez, Grove, |Ayes:|Fuentes, Harkey, |
| |Block, Hueso, Morrell | |Blumenfield, Bradford, |
| | | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires that the next update by Business,
Transportation and Housing Agency (BT&H), of the international
trade and investment strategy to include policy goals,
objectives and recommendations from the state Goods Movement
Action Plan (GMAP).
EXISTING LAW :
1)Authorizes BT&H to undertake international trade and
investment activities, and as a condition of that authority,
directs the development of a comprehensive international trade
and investment policy for California.
2)Requires BT&H to prepare a study every five years on the
potential roles of the state and global markets. The study is
required to make recommendations on policy, program and
funding needs in the near- and long-term. Among other things,
the recommendations may include infrastructure improvements,
workforce training needs, and/or incentives for business.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, BT&H indicates that the updates, including changes to
the requirements of the strategy, can be done within existing
resources.
COMMENTS :
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According to the author, California must ensure that it has a
robust trade infrastructure including its airports, seaports and
land ports of entry in order to facilitate the efficient
transfer of exports and imports. If prepared, California will
benefit under the National Export Initiative, a federal effort
to double American exports from 2010 to 2015 and support the
growth of two million jobs across the United States.
Up until 2004, the Technology, Trade and Commerce Agency was the
responsible government entity for promoting economic
development, international trade, and foreign investment in
California. When the agency was eliminated, due to its poor
administrative performance, the authority for all state trade
activity was also struck from statute.
Beginning in the 2005-06 session, several legislative measures
were introduced to reinstate the state's trade authority. No
measures were successful until a compromise was negotiated by
the Assembly Jobs, Economic Development and the Economy
Committee, SB 1513 (Perata), Chapter 663, Statutes of 2006.
During the deliberations on the re-establishment of the state's
trade authority, concerns were repeatedly raised that the state
lacked a comprehensive, or even generally understandable,
statutory scheme related to trade and foreign relations. SB
1513 (Perata) addressed these concerns by first requiring BT&H
to undertake a trade study to determine what role, if any, the
state should play in international trade and foreign investment
activities. Second, the bill required BT&H to establish a
business advisory committee to provide California businesses
with direct access to the policy making process. Third, the
bill required the development of a trade strategy that is
consistent with the trade study and acts as the vehicle for
implementing the state's trade policy. The first strategy was
published in February 2008. The next update is required in
February 2013.
The purpose of the GMAP is to improve and expand California's
goods movement industry and infrastructure in a manner which
will generate jobs, increase mobility, reduce traffic
congestion, improve air quality, protect public health, enhance
port safety and improve people's quality of life. The GMAP work
done to date takes a very macro look at the goods movement
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industry currently serving California business, and makes
recommendations for projects on California's highway, rail, and
air transport goods movement networks.
Analysis Prepared by : Mercedes Flores / J., E.D. & E. / (916)
319-2090
FN: 0000488