BILL ANALYSIS Ó
AB 690
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ASSEMBLY THIRD READING
AB 690 (Campos and Medina)
As Amended January 23, 2014
Majority vote
ECONOMIC DEVELOPMENT 9-0
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|Ayes:|Medina, Mansoor, Campos, |
| |Daly, Fong, Fox, Linder, |
| |Melendez, |
| |V. Manuel Pérez |
| | |
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SUMMARY : Repeals and recasts statutory provisions within the
Government Code relating to California and Mexico relations
including adding the Director of the Governor's Office of
Business and Economic Development (GO-Biz) to the membership of
the California-Mexico Border Relations Council (Border Relations
Council) and designating him or her as Chair. Specifically,
this bill:
1)Expands the membership of the Border Relations Council to
include the Director of GO-Biz.
2)Transfers the responsibility to chair the Border Relations
Council from the Secretary of the Environmental Protection
Agency (EPA) to the Director of GO-Biz.
3)Reorganizes the statutory placement of the Office of
California-Mexico Affairs (Mexico Affairs Office) and the
Border Relations Council from a general title within state
government to a more specific title on foreign relations
within the Government Code.
EXISTING LAW :
1)Establishes a separate Government Code title for issues
relating to foreign relations, which includes the assignment
of responsibilities to specific government entities. GO-Biz
is designated as the primary state agency responsible for
international trade and foreign investment activities,
excluding agriculture. The Natural Resources (NRA) and
Environmental Protection (EPA) Agencies are designated as the
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primary state agencies responsible for the international
exchange of environmental protection and alternative energy
technologies.
2)Establishes the Mexico Affairs Office for the purpose of
furthering and developing favorable economic, educational, and
cultural relations with bordering Mexican and U.S. states.
The Mexico Affairs Office is the successor entity to the
California Office of the Southwest Border Regional Conference
and the Commission of the Californias. The members of the
Southwest Border Regional Conference are specified as the
Governors of the four American border states: California,
Arizona, New Mexico, and Texas.
3)Establishes the Border Relations Council consisting of the
California state agency Secretaries of EPA (chair), NRA,
Health and Human Services, Transportation, Food and
Agriculture, and the Director of the Governor's Office of
Emergency Services.
FISCAL EFFECT : None
COMMENTS : The United States and Mexican economies have become
increasingly integrated, which has brought both opportunities
and challenges to California, most notably in the areas of
business development, labor relations, health care, and
environmental protection.
Beginning in 1999, Mexico became California's number one trade
partner, receiving $26 billion (16% of all exports) in goods in
2012. California's top five exports to Mexico in 2012 were:
Computer and Electronic Products ($8.3 billion); Transportation
Equipment ($2.4 billion); Machinery, except Electrical ($2
billion); Petroleum and Coal Products ($1.8 billion); and
Chemicals ($1.5 billion).
According to a Public Policy Institute study, much of the
California-Mexico trade is two-way within the same commodity
class, suggesting extensive production sharing. Components made
in California are assembled or further processed in Mexico, and
shipped back to California for distribution. One estimate is
that 40% of the content of U.S. imports from Mexico were
originally made in the U.S. That means a large portion of the
money U.S. consumers spend on Mexican imports goes to U.S.
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companies and workers.
Given the significance of California's trade with Mexico, it is
unfortunate that the state's two key forums for engaging with
Mexico do not include a role for the state's top economic and
business development organization, GO-Biz. This bill addresses
this policy oversight by adding GO-Biz to the Border Relations
Council and designates the Director of GO-Biz as Chair.
The policy committee analysis includes additional information on
the history of the California-Mexico coordinating bodies and how
reorganization implementation legislation inadvertently overlook
the inclusion of GO-Biz when replacing the Business,
Transportation, and Housing Agency on the Border Relations
Council. The policy committee analysis also includes a
description of current activities of the Border Relations
Council, background on international trade's contribution to the
California economy, and a list of related legislation.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0002976