BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 412
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 412 (Allen) - As Amended:  April 17, 2013 

          Policy Committee:                              JEDE Vote:8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Governor's Office of Business and  
          Economic Development (GO-Biz) to complete a study of the  
          potential roles for the state in global markets.  Specifically,  
          this bill:   

          1)Requires GO-Biz to submit a study to the Legislature by  
            October 1, 2015 on the state's role in supporting  
            international trade and foreign investment including issues  
            related to infrastructure, workforce development, investor  
            incentives and business development.

          2)Establishes requirements for the study and requires GO-Biz to  
            consult with other relevant agencies, boards, and commissions  
            that have statutory responsibilities related to workforce  
            development, infrastructure, business and international trade  
            and investment.

          3)Requires the study be updated every five years.

           FISCAL EFFECT  

          Estimated costs to GO-Biz of approximately $100,000 for  
          completion of the study. 

           COMMENTS  

           1)Purpose  .  The author notes a study was completed over five  
            years ago and recommendations were implemented to develop  
            international trade and further California's economic  
            opportunities.   However, the author argues there is  
            insufficient follow up and review to ensure that the  








                                                                  AB 412
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            implemented practices and recommendations are achieving their  
            goals and actually assisting in developing California's  
            economic opportunities.  The author adds it is important to  
            take a retrospective look at the work that has been done since  
            the completion of the last study and a review of the policies,  
            practices and procedures that have been put in place to show  
            what is working.  The author states once this information is  
            acquired, the Legislature and the state can better move  
            forward in attempts to provide more economic opportunities to  
            California's residents.

           2)Support  .  The California Asian Pacific Chamber of Commerce  
            supports AB 412 because there has not been a review within the  
            last five years to ensure the state is meeting the implemented  
            practices and recommendations laid out in the California  
            International Trade and Investment Act of 2006.

           3)The International Trade and Investment strategy (ITI).   The  
            state completed an ITI Strategy in 2008 and the next strategy  
            is due in February of 2014.  Similar to what is proposed in AB  
            412, the current ITI Strategy takes an industry sector  
            approach based on the state's core and emerging industries.
                
           4)Related Legislation  :  

             a)   AB 337 (Allen) adds a required element to the state's  
               international trade and investment strategy.  This bill is  
               in the Assembly Committee on Jobs, Economic Development and  
               the Economy.

             b)   AB 1081(Medina) integrates goods movement within the  
               states infrastructure planning including the Five-year  
               Infrastructure Plan and the state's international trade and  
               investment strategy.  This bill is in the Assembly  
               Committee on Jobs, Economic Development and the Economy.

           5)There is no registered opposition to this bill.   


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081