BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:June 23, 2014         |Bill No:AB                         |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                          Bill No:        AB 690Author:Campos
                       As Amended:January 23, 2014  Fiscal:  No 

        
        SUBJECT:  State government: international relations. 
        
        SUMMARY:  Repeals and recasts provisions related to the Office of  
        California-Mexico Affairs and California-Mexico Border Relations  
        Council.

        Existing law:
        
        1) Authorizes public (the State and municipalities) corporations and  
           private corporations to apply to operate and operate a  
           foreign-trade zone in accordance with the terms of the act of  
           Congress (which provided for the establishment, operation and  
           maintenance of foreign-trade zones in ports of entry in the U.S. to  
           expedite and encourage foreign commerce).  (Government Code (GC) §§  
           6301-6304)

        2) Establishes the California Foreign Investment Program, under which  
           the Governor's Office of Business and Economic Development (GO-Biz)  
           serves as the lead state entity for overseeing the state's  
           participating with the United States Citizenship and Immigration  
           Services' EB-5 Investment Program; a visa category available to  
           immigrants seeking to enter the U.S. in order to invest in a  
           business or company that will benefit the economy.   
           Permanent-resident status through an EB-5 visa is available to  
           foreign investors who have invested - or are actively in the  
           process of investing - at least $1million into a new commercial  
           enterprise, which can entail: the creation of an original business;  
           the purchase of an existing business and restructuring or  
           reorganizing the business to the extent that a new commercial  
           enterprise results; or a significant expansion of an existing  





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           business.  (GC § 6315.1)

        3) Establishes the Office of California-Mexico Affairs (Office) to  
           serve as a clearinghouse for information and assistance to other  
           state agencies involved with Mexico and develop favorable relations  
           with the State of Baja California, the State of Baja California  
           Sur, other Mexican states bordering on the United States, and the  
           remaining states and territories of Mexico.  Requires the office to  
           cooperate with similar organizations and agencies situated within  
           California, the U.S., or Mexico, to further economic development,  
           improve working conditions and living standards, and foster the  
           protection and improvement of the environment in Mexico and  
           California.  (GC § 8700 et. seq.)

        4) Establishes the California-Mexico Border Relations Council  
           (Council) comprised of the Secretary of the Natural Resources  
           Agency, the Secretary for Environmental Protection, the Secretary  
           of Health and Human Services, the Secretary of Transportation, the  
           Secretary of Food and Agriculture, and the Director of Emergency  
           Services, with the Secretary for Environmental Protection serving  
           as Chair.  Requires the Council to coordinate activities of state  
           agencies that are related to cross-border programs, initiatives,  
           projects, and partnerships that exist within state government, to  
           improve the effectiveness of state and local efforts that are of  
           concern between California and Mexico.  Requires the Council to  
           establish policies to coordinate the collection and sharing of data  
           related to cross-border issues between and among agencies and make  
           recommendations to the Legislature.  
        (GC § 8710 et. seq.)

        5) Establishes GO-Biz within the Governor's Office for the purpose of  
           serving as the lead state entity for economic strategy and  
           marketing of California on issues relating to business development,  
           private sector investment and economic growth.  GO-Biz also serves  
           as the administrative oversight for the California Business  
           Investment Service and the Office of the Small Business Advocate.   
           (GC §§ 12096 - 12098.8)

        6) Specifies that GO-Biz is the primary state agency authorized to  
           attract foreign investments, cooperate in international public  
           infrastructure projects, and support California businesses in  
           accessing markets, and requires the Director of GO-Biz to develop  
           an international trade and investment program (Program) attracting  
           employment-producing direct foreign investment to the state and  
           provides support for California businesses in accessing  
           international markets and increasing exports.  (GC § 13996.41) 





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        7) Authorizes GO-Biz to establish international trade and investment  
           (ITI) offices outside of the U.S. according to certain  
           requirements.  (GC § 13996.42)

        8) Requires GO-Biz to prepare an international trade and investment  
           strategy and provide a report to the Legislature on or before  
           February 1, 2014, updated once every five years that includes:  (GC  
           § 13996.55)

           a)   Policy goals, objectives and recommendations necessary to  
             implement a comprehensive international trade and investment  
             program.

           b)   Measurable outcomes and timelines for the goals, objectives  
             and actions for the program.

           c)   Impediments to achieving goals and objectives.

           d)   Key stakeholder partnerships that will be used to implement  
             the strategy.

           e)   Options for funding.

           f)   An organizational structure for state administration of  
             international trade and investment policies, programs and  
             services.  

        9)Requires the Director of GO-Biz to prepare the following:  (GC §  
          13996.65)

           a)   A budget for the Program and a separately stated budget for  
             each ITI office, with specified information.

           b)   A strategy and business plan for the Program, with specified  
             information, that is developed with input from California  
             businesses that shall include, but not be limited to, measurable  
             goals, objectives, and outcomes and timelines necessary to  
             attract employment-producing direct foreign investment to the  
             state and increase California exports.  

           c)   A written review of the implementation of the prior year's  
             strategy and business plan for the Program that addresses the  
             performance of the program and each ITI Office.  

        1)Provides that the Controller shall not allocate any state funds to  





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          GO-Biz for international trade and investment activities unless the  
          strategy for international trade and investment has been submitted  
          to the Legislature by May 1, 2014.  (GC § 13996.75)

        2)Establishes processes and accountability measures for GO-Biz to  
          accept private monies to fund, establish and operate international  
          trade offices.  (GC § 13997)  

        3)Provides for the following related to the role of stage agencies  
          with respect to international relations:  (GC § 99500)

           a)   The Governor is the primary state officer representing  
             California's interest in international affairs, to the extent  
             that representation is not in conflict with federal law or the  
             California Constitution.

           b)   The Lieutenant Governor is the Chair of the California  
             Commission for Economic Development, to improve trade  
             opportunities for California. The Legislature finds that the  
             commission has developed international partnerships that provide  
             venues for foreign companies to do business in the state and for  
             California-based companies to access foreign markets.

           c)   The Attorney General is the chief law officer of California  
             and as such assists the federal government in defending against  
             international challenges to California laws.

           d)   The Secretary of State oversees the International Business  
             Relations Program, which aims to develop stronger connections  
             between the international business community and the state by  
             assisting foreign business entities with the various filing  
             processes and procedures in California.

           e)   The Department of Food and Agriculture is the primary state  
             agency for the promotion of California agriculture, fish, and  
             forest exports.

           f)   The Natural Resources Agency and the California Environmental  
             Protection Agency are the primary state agencies for the  
             promotion of international exchange of environmental protection  
             technologies, alternative energy technologies, and the promotion  
             of the transfer of environmental technology to and from the  
             state.

           g)   GO-Biz is the primary state agency responsible for  
             international trade and investment activities in areas other than  





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             those covered by the Department of Food and Agriculture.

        13)Establishes a state point of contact (SPOC), within the executive  
          branch, to act as the liaison between the state and the Office of  
          the U.S. Trade Representative (USTR) on trade-related matters.   
          Provides that the SPOC is often provided the opportunity to review  
          and comment on ongoing trade negotiations and must promptly  
          disseminate correspondence or information from the USTR to the  
          appropriate state agencies and departments and legislative  
          committees and work with the appropriate state agencies and  
          departments, and the Legislature, to review the effects on the  
          California environment, and California businesses, workers, and  
          general lawmaking authority, of any proposed or enacted trade  
          agreement provisions and communicate those findings to the USTR.   
          (GC § 99501)

        14)Requires the Office of Planning and Research (OPR) to maintain and  
          update a full and comprehensive list of all state agreements made  
          with foreign governments, updated within 
        30 days of the effective date of each new agreement. 

        This bill:

        1) Repeals and recasts provisions related to the California-Mexico  
           Border Relations Council and Office of California-Mexico Affairs. 

        2) Strikes current Legislative intent language for the creation of the  
           Office, about the need for state agencies to address important  
           United States-Mexico issues, and replaces it with language related  
           to: (1) trade with Mexico and California's potential to capitalize  
           on Mexico's growing economy, impacts of border crossing delays  
           between Mexico and the United States along the Imperial County-Baja  
           California border, (2) recognition that faster foreign direct  
           investment is occurring elsewhere, (3) California's  lack of a  
           formal mechanism devoted to maximizing trade, addressing  
           challenges, and coordinating cross-border programs for trade  
           development between the two countries, and (4) establishing an  
           official trade relationship with Mexico that will help ensure that  
           the state can improve its global competitiveness and protect  
           California industry, proactively support the expansion and location  
           of businesses in California, provide international business  
           assistance to California businesses, and support their entry and  
           successful participation in the growing Mexican marketplace.

        3) Provides that the Governor, or his or her designee, shall serve as  
           the California member of any board, council, commission, or other  





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           binational advisory or coordinating body convened under the  
           auspices of the Office.

        4) Adds the Director of GO-Biz to the Council and establishes the  
           Director of GO-Biz as the Chair of the Council.  

        
        FISCAL EFFECT:  This bill is keyed "non-fiscal" by Legislative  
        Counsel.

        
        COMMENTS:
        
        1. Purpose.  The  Author  is the Sponsor of this bill.  According to the  
           Author, "the state's two existing programs on California-Mexico  
           relations are basically shells.  As a result, existing law on  
           California's trade programs is confusing and does not give  
           prominence to California-Mexico trade.  Business groups have noted  
           that the state's laws on foreign relations and trade are difficult  
           to locate and understand because there isn't one comprehensive code  
           section for all trade programs."  This bill seeks to address that  
           problem by updating California law to create one comprehensive  
           authorizing statute for the state's international trade activities,  
           what the Author calls "a technical fix that simply moves the  
           authorizing statutes for the Office of California-Mexico Affairs  
           and the California-Mexico Border Relations Council to be within the  
           other statutes relating to foreign relations."  The Author also  
           adds that this bill aligns the California-Mexico trade programs  
           with other trade programs within GO-Biz by making the Director of  
           GO-Biz the chair of the California-Mexico Border Relations Council.

        2. Background.
        
           a)   Office of California-Mexico Affairs.  The Office was initially  
             created in 1982 to oversee the activities of the former  
             Commission of the Californias (Commission) and California Office  
             of the Southwest Border Regional Conference (Conference).  The  
             general charge of the Commission, prior to elimination due to the  
             elimination of the Technology, Trade and Commerce Agency (TTCA)  
             in 2004, and the Conference, was to develop favorable economic,  
             educational, and cultural relations with Baja California, Baja  
             California Sur and territories with the Republic of Mexico and  
             coordinate with other American border states. The Office was  
             charged with serving as a clearinghouse for information and  
             assistance to other state agencies involved with Mexico.






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           b)   California Border Relations Council.  Created following the  
             demise of TTCA and concern about the lack of a state government  
             structure to provide effective coordination of various state  
             agency efforts, as well as a thoughtful and collaborative  
             assessment of current and future program development that will  
             serve the needs of both California and Mexico in the 21st  
             century, the Council currently operates under the California  
             Environmental Protection Agency (Cal EPA)'s California-Baja  
             California Boarder Environmental Program.  In 2006, when the  
             Council was established, there was no entity, despite the  
             numerous programs and initiatives amongst various agencies, to  
             coordinate or collaborate or provide for any information sharing.  
              At that time, the Legislature was focused on mitigating any  
             potential impacts stemming from the recently enacted North  
             America Free Trade Agreement (NAFTA), including challenges in the  
             areas of economic development, labor relations, health care, and  
             environmental protection.  Numerous programs at various levels of  
             state government have been established to address these issues.  
             
             The Council coordinates cross-border programs, initiatives,  
             projects and partnerships within California state agencies,  
             establishes California state agency policies or the collection  
             and sharing of cross-border data, identifies and recommends  
             changes in the law needed to achieve Council goals and reports  
             annually to the Legislature. 

             The Council's 2011-12 annual report to the Legislature provided  
             an overview of Council activities, highlighting the Council  
             working "closely and effectively with local governments and  
             stakeholders on both sides of the border to make great strides in  
             public health and safety as well as environmental protection and  
             restoration."  The report noted that recent population and  
             industrial growth, combined with the lack of public funding to  
             meet these expanding needs has led to pressures on public safety,  
             environmental ecosystems and infrastructure in the region.   
             According to the report, the region is experiencing greater  
             traffic congestion, water shortages, reduced air quality,  
             increased generation and disposal of hazardous wastes, sewage  
             infrastructure deficiencies and contaminated beaches and  
             waterways.
             
        1. Trade with Mexico.  According to information provided by United  
           States International Trade Commission (USITC), Mexico is the United  
           States' third-largest trading partner.  Since the implementation of  
           the North American Free Trade Agreement (NAFTA), Mexico and the  
           United States have significantly strengthened their economic ties.   





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           Mexico ranks third as a source of U.S. imports ($285.4 billion in  
           2011) and second as an export market for U.S. goods and services  
           ($174.4 billion in 2011).   
            
           Beginning in 1999, Mexico became California's number one trade  
           partner.  The Public Policy Institute released a study in 2004 that  
           highlighted how California and Mexico's 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.  One estimate states that  
           Mexican exports include over 20% U.S. components.  Top commodities  
           for this type of trade include: machinery, vehicles, instruments,  
           and electronics and electronic equipment.  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). 

        2. Governor's Office of Business and Economic Development (GO-Biz) and  
           International Trade Efforts in California.  In February 2010, the  
           Little Hoover Commission undertook a review of the state's economic  
           and workforce development programs.  In its final report, Making up  
           for Lost Ground:  Creating a Governor's Office of Economic  
           Development, it analyzed the status and effectiveness of current  
           programs since the 2003 demise of the Technology, Trade and  
           Commerce Agency and recommended the creation of a new governmental  
           entity to fill the void left by the dismantled agency.

           The report called for a single entity that would promote greater  
           economic development, foster job creation, serve as a policy  
           advisor and deliver specific services (i.e., permitting, tax,  
           regulatory, and other information) directly to the California  
           business community.  In April 2010, Governor Schwarzenegger issued  
           Executive Order S-05-10 as a means to operationalize the report  
           recommendations including the creation of the Governor's Office of  
           Economic Development (GOED).

           In October 2011, the Governor signed  AB 29  (cited and described  
           below), which effectively codified GOED and changed its name to  
           GO-Biz, effective January 1, 2012.  Since its inception, the office  
           has served over 3,000 businesses, 95% of which are small.  The most  
           frequent types of assistance include help with permit streamlining,  
           starting a businesses, relocation and expansion of businesses, and  
           regulatory challenges.  

           When TTCA was eliminated in 2004 due to its poor administrative  





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           performance, the authority for all state trade activity was also  
           eliminated and the few remaining programs came under the umbrella  
           of the Business, Transportation and Housing Agency (BTH).  The  
           former International Investment Division under TTCA had 91  
           employees and a budget of $43 million, allowing it to engage in  
           activities like formal marketing.  Beginning in the 2005-06  
           Session, several legislative measures were introduced to reinstate  
           the state's trade authority.   SB 1530  (Romero, 2006) addressed  
           these concerns by requiring BTH to undertake a trade study to  
           determine what role the state should play in international trade  
           and foreign investment activities and required them to establish a  
           business advisory committee, and development of a trade strategy  
           consistent with the study and acts as the vehicle for implementing  
           the state's trade policy.  The first strategy was published in  
           February 2008 and most recent was issued in February 2014. 

           The February strategy highlighted strategic objectives intended to  
           implement an overall policy of creating jobs, increasing revenues  
           for California enterprises, and improving California's  
           international competitiveness by expanding the export of California  
           goods and services and by increasing foreign direct investment into  
           the state.  The objectives include:

                     Developing a comprehensive, coordinated and cohesive  
                strategy development framework with a clear vision to expand  
                trade and investment, which includes other relevant state  
                agencies, with input from private and public sector  
                stakeholders.

                     Implementing more proactive outreach, awareness,  
                education and engagement programs both within the state for  
                California-based companies and through foreign partners and  
                trade office(s).

                     Maximizing China Trade Office resources and  
                opportunities to expand exports and investment.

                     Developing an action plan to address key challenges  
                facing California's ports and related infrastructure to ensure  
                their competitiveness.

                     Re-engaging and strengthening working relationships with  
                the Office of the U.S. Trade Representative and the state's  
                Congressional delegation to advocate California interests  
                related to international trade and investment.






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                     Developing and implementing a more user-friendly,  
                comprehensive, interactive and useful website to assist  
                California companies wanting to export and to attract foreign  
                investment.

           In the report, GO-Biz advised it will reevaluate, when appropriate  
                                                                               or necessary, the recommended objectives and actions in order to  
           achieve the state's overall international trade and investment  
           policy goals.

           In February 2014, Governor Brown announced the creation of a  
           California International Trade and Investment Advisory Council  
           (Council) which will advise GO-Biz on strategies to expand  
           international trade and investment for California businesses.   
           Specifically, in announcing its creation, the Governor noted that  
           the Council "will assist GO-Biz in identifying foreign markets with  
           the greatest potential for export expansion and in developing  
           specific export strategies for those markets - including the  
           state's top trading partners, Canada, Mexico and China, and  
           emerging markets such as Brazil and India."   
           
           Until the creation of GO-Biz there were only a very small number of  
           former International Investment Division staff working on trade  
           related issues and activities for the state.  GO-Biz now has  
           authority for undertaking international trade and foreign  
           investment activities, including establishing any international  
           trade and investment office (  AB 2012 , Perez, Chapter 294, Statutes  
           of 2012).  GO-Biz has partnered with the Bay Area Council to open a  
           California-China Trade and Investment office in Shanghai's downtown  
           Yangpu district.  In a March 2013 report to the Legislature on the  
           status of this effort, GO-Biz described the office's goals "to  
           drive increased employment, revenues at California enterprises, tax  
           revenues, and international competitiveness in California" which  
           will be accomplished through promoting investment in California;  
           facilitating two-way international business growth, with an  
           emphasis on expanding foreign sales by California employers,  
           including not only manufacturers, agricultural enterprises, and  
           commodity producers, but also service providers such as  
           universities, banks, consulting companies, and the like; supporting  
           continued growth of California's role as a gateway state for goods  
           movement and passenger travel; and identifying and addressing  
           barriers to international expansion by California employers. 

        1. Related Legislation This Year.   SB 511  (Lieu) of 2014 would require  
           GO-Biz to convene a statewide business partnership for port trade  
           promotion and would create an export finance office to provide  





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           export assistance to small and medium sized companies.  (  Status:    
           The bill is currently pending in the Assembly Committee on Jobs,  
           Economic Development and the Economy.)

            SB 928  (Correa) of 2014 requires GO-Biz to establish an  
           international trade and investment office in Mexico City, Mexico by  
           January 1, 2016.  (  Status:   The bill is pending in the Assembly.)

            AB 337  (Allen) of 2013 updates requirements for the international  
           trade strategy prepared by GO-Biz to be based on current and  
           emerging market conditions and the needs of investors, businesses,  
           and workers to be competitive in global markets.  (  Status:   The  
           bill is pending in the Senate Committee on Appropriations.)  

            AB 2713  (Quirk-Silva) of 2014 authorizes GO-Biz to establish  
           public-private partnerships to help guide state activities related  
           to the export of California products and requires GO-Biz to  
           establish the South Korean Trade Promotion Advisory Committee to  
           help guide state activities related to the export of California  
           products to South Korea and the attraction of employment-producing  
           direct foreign investment by South Korean investors.  (  Status:   The  
           bill is pending in the Senate Committee on Appropriations.)  

        2. Prior Related Legislation.   SB 592  (Lieu) of 2013 was identical to  
           SB 511 and also would have required GO-Biz to provide a port trade  
           promotion strategy to the Legislature on or before April 1, 2014.   
           (  Status:   The bill was held in the Assembly Committee on  
           Appropriations.)   

            SB 810  (Price, 2013) would have authorized the California  
           Transportation Financing Authority to award $500 million in tax  
           credit certificates to exporters and importers, as defined, for the  
           specified increases in cargo tonnage or value, net increases in the  
           number of qualified full-time employees hired in California, or  
           capital investment in a cargo facility.  (  Status:   The bill is  
           pending in the Senate Committee on Governance and Finance.)  

            AB 412  (Allen) of 2013 stated the intent of the Legislature to  
           enact legislation to enhance and expand opportunities for  
           California businesses to engage in international trade.  ( Status:    
           The bill was held in the Assembly Committee on Appropriations.) 

            AB 886  (Allen) of 2013 stated the intent of the Legislature to  
           enact legislation that would address issues that enhance and expand  
           opportunities for California business to engage in international  
           trade with Latin America and other nations.  (  Status:   The bill was  





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           held in the Assembly Committee on Appropriations.) 

            AB 1067  (Medina, Chapter 535, Statutes of 2013) established the  
           California Foreign Investment Program within GO-Biz as the lead  
           entity for overseeing the state's participation in the federal the  
           EB-5 visa program.

            AB 1081  (Medina) of 2013 would have required the international  
           trade and investment strategy prepared by GO-Biz to include the  
           identification of trade-related infrastructure enhancements to  
           support the state's international trade policies, programs, and  
           services and requires the interregional transportation improvement  
           program prepared by the Department of Transportation to include  
           projects to improve international movement of goods through air,  
           land, and water ports.  (  Status:   The bill was held in the Assembly  
           Committee on Appropriations.) 

            AB 1088  (Muratsuchi) would have required GO-Biz, no later than  
           January 1, 2016, to establish an overseas trade office in Tokyo,  
           Japan.  (  Status  : This bill was never heard in a policy committee.)

            AB 1201  (Allen) of 2013 stated the intent of the Legislature to  
           enact legislation that would address issues that enhance and expand  
           opportunities for California business to engage in international  
           trade with the European Union and other nations.  (  Status:   The  
           bill was never heard in a policy committee.)  

            AJR 4  (Hueso, Pérez, Res. Chapter 24, Statutes of 2013) urges the  
           federal government to fund necessary improvements at the San  
           Ysidro, Calexico, and Otay Mesa Ports of Entry.    
             
           AB 2012  (Perez, Chapter 294, Statutes of 2012) transferred the  
           authority for undertaking international trade and foreign  
           investment activities from BTH to GO-Biz, including establishing  
           any international trade and investment office.  
         
            SB 460  (Price) of 2011 included similar language as contained in SB  
           511 and SB 592 above,    (  Status  :  The bill was held in the  
           Assembly Committee on Appropriations.)
             
           SB 830  (Wright, 2011) is virtually identical SB 810 of 2013.   
           (  Status:   This measure failed passage in the Senate Committee on  
           Revenue and Taxation.) 

            SCR 33  (Price, Resolution Chapter 60, Statutes of 2011) expressed  
           the sentiment of the Legislature that the EB-5 visa program is  





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           beneficial to the state's economic development and provides  
           important opportunities for foreign direct investment to  
           California.   

            AB 29  (John A. Pérez, Chapter 475, Statutes of 2011) established  
           GO-Biz within the Governor's Office for the purpose of serving as  
           the lead entity for economic strategy and marketing of California  
           on issues relating to business development, private sector  
           investment and economic growth.  
            
           AB 1137  (V. Manuel Pérez, 2011) would have facilitated local  
           economic development and job creation by assisting small business  
           to access new export markets for their goods and services, updating  
           the law relating to free trade zones, and authorizing the use of  
           new federal funds under the Small Business Jobs Act of 2010.   
           (  Status:   This measure was held in the Senate Committee on  
           Appropriations.)  
            
            AB 2656  (Calderon, 2011) is virtually identical to SB 810 of 2013.   
           (  Status:   This measure was held in the Assembly Committee on  
           Appropriations.) 

            SB 1175  (Price, 2010) would have required the Secretary of BTH to  
           direct the California Travel and Tourism Commission to conduct a  
           review of its principal mission and core competencies in order to  
           determine if the commission should include trade promotion in its  
           strategic marketing plan or other future plans of the commission  
           and provide a report to the Legislature.  (  Status:   This measure  
           was held in the Senate Committee on Rules.)  

            AB 2443  (Perez, 2010) required the state point of contact for trade  
           agreements to provide specified Legislative committees with copies  
           of any official position taken or comments, that any entity within  
           the executive branch of state government provided to the U.S. Trade  
           Representative relating to a pending trade agreement.  The bill  
           also created a new process for the establishment of Sister State  
           relationships with a purpose of promoting economic growth and trade  
           and investment opportunities.  (  Status:  This measure was vetoed by  
           the Governor.)
            
            AB 1409  (Jobs, Economic Development and the Economy Committee) of  
           2011 would have required that the next update by BTH of the  
           international trade and investment strategy to include policy  
           goals, objectives and recommendations from the state Goods Movement  
           Action Plan.  (  Status  :  The bill was amended to deal with another  
           subject matter and held in the Senate Committee on Rules in 2012.)   





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           AB 1558  (Assembly Committee on Jobs, 2009) aimed to recodify and  
           reorganize sections of the Government Code to create one  
           comprehensive code for the state's international trade activities  
           and programs.  (  Status:   The measure was amended to deal with  
           reorganization of the state's economic development programs.  This  
           measure was held in the Senate Committee on Appropriations in  
           2010.)

            AB 1722  (Committee on Jobs, Economic Development, and the Economy,  
           2008) would have required BT&H 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:   This measure was vetoed by the Governor.)

            AJR 14  (Jeffries, Resolution Chapter 73, Statutes of 2007)  
           memorialized the President of the U.S. and Congress to enact  
           legislation to ensure that a substantial increment of new revenues  
           derived from customs duties and importation fees be dedicated to  
           mitigating the economic, mobility, security, and environmental  
           impacts of trade in California and other trade-affected states  
           across the U.S.  

            SB 1513  (Romero, Chapter 663, Statutes of 2006) provided new  
           authority for BT&H 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.   

            AB 3021  (Nunez, Chapter 621 of 2006) established the current  
           Council.

            AB 1395   (Nunez) of 2005 would have required the Secretary of Cal  
           EPA and the Secretary of BTH to develop and coordinate a strategic  
           plan, and make recommendations regarding an appropriate governance  
           structure for California-Mexico relations.  (  Status:   This measure  
           was vetoed by the Governor.)

            AB 2399   (Garcia) of 2005 would have required the Secretary of BTH  
           to prepare and provide to the Legislature a study on infrastructure  
           development along the California-Mexico border and to report  
           whether there is a need for alternative financing mechanisms.   
           (  Status:   The bill was amended to deal with a different subject  
           matter.)






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            SB 772  (Ducheny, Chapter 214, Statues of 2005) required the  
           California Integrated Waste Management Board's waste tire five-year  
           plan to incorporate information on border region activities on  
           waste tires.

            AB 1183  (Ridley-Thomas) of 2003-04 would have required BTH to  
           conduct a feasibility study on the establishment of a California  
           and Mexico Border Economic Infrastructure Financing Authority.   
           (  Status:   This measure was held in the Assembly Committee on  
           Appropriations.) 

            SB 865  (Polanco) of 2001 would have established a California and  
           Mexico Border Infrastructure Financing Authority within the State  
           Treasurer's Office. (  Status:   This measure was held in the Assembly  
           Committee on Appropriations.)

            SB 207  (Peace, Chapter 773, Statutes of 1999) permitted the  
           establishment of Infrastructure Financing Districts along the  
           California-Mexico border.
         
         3. Suggested Author's Amendment.  The Council's activities, as  
           highlighted in the 2011-12 annual report, focus on mitigating many  
           of the significant health and public safety challenges that  
           California and Mexico face, most especially in border communities.   
           The majority of California's 32 current agreements or Memorandums  
           of Understanding with foreign governments focus on environmental  
           issues or policies.  There is some concern that, while it is  
           imperative for the state to support and promote trade and  
           international partnerships with other nations as a means of  
           boosting our economy and the ability for California businesses to  
           have an international market for their goods and services, this  
           bill could have the effect of shifting the administration of the  
           Council's work to an entity that was intended to be under the  
           Governor for high level economic development activities, by  
           requiring the Director of GO-Biz to be the Chair of the Council.   
           The Author may wish to keep language in the bill to add the  
           Director of GO-Biz to the Council as a means of further enhancing  
           important strategies and conversations related to trade with  
           Mexico, but strike the requirement that the GO-Biz Director serve  
           as Chair. 
           
           On page 6, strike lines 37-38 and replace with current law  
           identifying the Secretary for Environmental Protection as the chair  
           of the council.  
        






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        SUPPORT AND OPPOSITION:
        
         Support:  

        None on file as of June 18, 2014.

         Opposition: 

        None on file as of June 18, 2014.



        Consultant:Sarah Mason