BILL ANALYSIS Ó SB 511 Page 1 Date of Hearing: June 24, 2014 ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY Jose Medina, Chair SB 511 (Lieu) - As Amended: May 19, 2014 SENATE VOTE : 31-0 SUBJECT : Trade promotion and California ports SUMMARY : Establishes the California Export Finance Office within the California Infrastructure and Economic Development Bank (I-Bank) and requires the Governor's Office of Business and Economic Development (GO-Biz) to convene a statewide business partnership to discuss the promotion and greater utilization of California ports. Specifically, this bill : 1)Sets forth findings and declarations, including, but not limited to, the value of trade to the California economy, that there are substantial opportunities to strengthen and grow California's trade sectors, and the benefits small and medium size businesses would receive from financing and technical assistance. 2)Requires GO-Biz to convene a statewide business partnership by February 1, 2015, for the purpose of advising the Director on promoting trade for California ports, while increasing the use of California ports of entry, and ways to increase the opportunity for growth and trade activity. 3)Requires representatives from the following groups be included in the business partnership: ports of entry; ocean carriers; marine terminal operators; warehouse operators; railroads; trucking companies; labor representatives; foreign trade zones; environmental group representatives; and shippers, as specified. 4)Establishes the Export Finance Office within the I-Bank, for the purpose of expanding employment and income opportunities for Californians through increased exports of California goods, services, and agricultural commodities. This purpose is to be achieved by providing actual and potential California small and medium-size exporters with information and technical assistance on export opportunities, exporting techniques, and financial assistance in support of export transactions. 5)Requires the executive director of the I-Bank or his or her designee SB 511 Page 2 to serve as the director of the Export Finance Office. Among other activities the director is authorized to: a) Hold public hearings; b) Contract for services; c) Call upon and reimburse other state entities for assisting in carrying out the objectives of the Export Finance Office; d) Participate with government or private industry in programs for technical assistance, loans, technology, transfer, or any other programs related to the Export Finance Office; e) Undertake or commission studies on methods to increase financial resources to expand the exports of California goods, services, and agricultural commodities; f) Exercise other power as may be necessary to carry out the purpose of the Export Finance Office; g) Provide export finance training for staff and other individuals involved. 6)Authorizes the California Export Finance Office to: a) Insure, coinsure, and guarantee loans related to qualified export transactions; b) Coordinate the activities of the California Export Finance Office with the Export-Import Bank of the U.S., the International Trade Administration, the Foreign Credit Insurance Association, and other public and private programs designated to provide export assistance and export-related financing; c) Establish a network of contacts among public and private organizations that provide technical assistance, information, and financial support for exporting; d) Assembly, publish, and disseminate information to California exporters on export opportunities, techniques for exporting, sources of public and private export assistance, and sources of export-related financing; e) Organize, host, and participate in seminars and other forums designed to disseminate information and technical assistance on exporting and export financing; f) Provide individual firms and agricultural enterprises with information and technical assistance relating to exporting and exporting finance; g) Act as an agent for creditworthy California growers, manufacturers, and other exporters to sell accounts receivable that are approved by the California Export Finance Office and insured by the Foreign Credit Insurance Association or an acceptable insurer, to qualified parties; and SB 511 Page 3 h) Function as a clearinghouse for the collection and disbursement of funds relative to those sales through the use of a segregated bank account. 7)Establishes an 11-member California Export Finance Board (Board) and authorizes the Board to adopt regulations to implement the responsibilities and activities of the California Export Finance Office. Board members are proposed to serve two-year terms, be compensated for their time, as specified, and include: a) The Executive Director of the I-Bank or his or her designee; b) The Secretary of Food and Agriculture; c) One individual appointed by the Governor who has knowledge of exporting agricultural products; d) Three individuals appointed by the Governor and one individual appointed the Speaker who are knowledgeable and know the needs of small exporters and are actively employed with an exporting firm; e) One individual appointed by the Governor and one individual appointed by the Senate Committee on Rules, each of whom are knowledgeable about export financing, the problems of small and entrepreneurial exporters, and actively employed by a financial institution; f) One person appointed by the Controller and one person appointed by the Treasurer, each of whom has expertise as an accomplished credit evaluation representative experienced in analyzing financial statements, as specified. 8)Authorizes the Board to elect a chair and vice chair from among its members, oversee the programs and promulgate rules and regulations that are necessary to establish those programs, including, but not limited to, programs to insure, co-insure, and provide loan guarantees to support export transactions. The Board is also required to adopt by-laws; appoint advisory committees; and hold regularly scheduled meetings, at least quarterly. 9)Requires, as part of adopting the rules and regulations, to adopt criteria establishing which exports and export transactions are eligible for insurance, coinsurance, and loan guarantees, which include all the following: a) Borrowers have a minimum equity interest in the business, as specified; b) Loan guarantees, insurance, and coinsurance are extended exclusively to support the export of goods, services, and agricultural commodities produced or grown primarily in SB 511 Page 4 California by companies or agricultural enterprises that have California as a principal place from which their trade or business is directed or managed; c) Financing assistance, which is backed by money in the Export Finance Funds, which is created in this bill, is only offered under the following circumstances: i) As part of a state match that is required to secure participation of California firms or agricultural enterprise in federal, state, or private financing; ii) If inadequate financing assistance is not otherwise readily available from other public or private sources in a timely manner; d) Collateral and security requirements to ensure full repayment of loan guarantees and solvency of any insurance and coinsurance program, as well as assisting in the evaluation of the program. e) Approve all extensions of insurance, coinsurance, or loan guarantees. This authority may be delegated to three or more members of the Board, as specified. 10)Requires the Board to issue an annual report critiquing the program, its needs, and recommend changes. Requires the report to also include an evaluation of the program's impact on all of the following: a) Participation of financial institutions in export finance programs; b) Access of California firms to federal export financing programs; c) Export volume of California firms; and d) Economic and social benefits of exports to the state. 11)Requires the California Export Finance Office to comply with the Bagley-Keene Open Meeting Act and the California Public Records Act. 12)Authorizes the executive director of the I-Bank to determine whether the disclosure of financial data contained in applications for financial assistance would be competitively injurious to the applicant and, if so, not require such information. 13)Establishes the Export Finance Fund, as a continuously appropriated fund, for the purpose of receiving state, federal, and private funds, fees and collections, and the return from investments made pursuant to this bill. 14)Provides that the state is not liable or obligated beyond the state SB 511 Page 5 funds deposited in the Export Finance Fund. EXISTING LAW: 1)Establishes GO-Biz for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues related to business development, private sector investment, and economic growth. 2)Establishes the I-Bank, within GO-Biz, to administer a range of programs including the Small Business Finance Center, the State Infrastructure Revolving Loan Fund, and to serve as a conduit bond issuer. FISCAL EFFECT : Unknown COMMENTS : 1)Author's Purpose : "Currently, the Government Code does not explicitly require the California Infrastructure and Economic Development Bank (I-Bank) to allocate funds for export finance. From 1985-2003, California had a state entity, the California Export Finance Office (CEFO), that provided capital loan guarantees to banks and other financial institutions on behalf of small and medium-sized California companies to support their export efforts, much like the proposed office in SB 511. The program was successful in that it helped many companies, generated nearly a half billion dollars in export sales and was primarily fiscally self-sustaining. Unfortunately, CEFO expired with the elimination of the Technology, Trade and Commerce Agency in 2004. Given that China, India, and other Asian countries are now growing their economies, a huge number of new middle class consumers will emerge, providing an enormous market that California, as the gateway to the Pacific Rim, is well positioned to go after. To remain competitive with Mexico and British Columbia - both of which have dramatically increased exports in 2012 - California needs to engage small and medium sized businesses into the export market. Namely, reinstating CEFO would achieve this goal by providing transactional export financing for small and medium sized businesses." 2)Framing the Policy Issue : This measure proposes the re-establishment of the California Export Finance Office, a government entity which last existed in 2003 within the Technology, Trade, and Commerce Agency (TTCA). In 2003, the TTCA was eliminated SB 511 Page 6 along with all of the trade-related programs. The California Export Finance Office was a very popular state program and served as an important link within California's network of export-related programs and services. Today, however, California and the federal government offer small business financing and technical assistance programs in an organizational framework which is different from a decade ago. Integrating, rather than duplicating, export program and service responsibilities would result in a leaner California Export Finance Office structure and offer opportunities to leverage existing program proficiencies, while compensating for weaknesses. The analysis includes information on the state's current international trade programs and services, California's trade dependent economy, and the national trade initiate. Amendments are discussed in Comment 8. 3)Traded industries and Economic Growth : California's $2 trillion economy naturally functions as an independent economic power within the global economy. In fact, compared to other nations, California has one of the 10 largest economies in the world, due to it being a top-tier trade partner, a best-in-class investment location, a high quality producer of goods and services, and the home and key access point for a massive consumer-base. In 2013, California exported $168 billion in products to over 220 foreign countries. While California has been significantly impacted by the recession, exports continued to increase in almost every quarter from 2010 through 2013. Recently, the value of trade-related industries, as a component of the broader economy, was the subject of a study by the Brookings Institute and JP Morgan Chase, Export Nation 2013. The report found that between 2003 to 2012 exports drove post-recession growth in the 100 largest metro areas including Los Angeles, San Diego, and the Inland Empire. The study is unique in that it collected data by origin of production rather than origin of export movement, as is the case with the U.S. Department of Commerce export data. Using the Export Nation methodology, total California exports for goods and services in 2012 was $252 billion, as compared to the U.S. Census Bureau's 2012 number of $162 billion for goods only, as measured by origin of movement. SB 511 Page 7 In 2012, exports represented 8.8% of California GDP, based on Export Nation data. The top five California metro areas with the highest concentration of export-related GDP in the report period include: (1) Los Angeles (37.1%); (2) San Francisco (15%); (3) San Jose (13.7%); (4) San Diego (11.5%), and (5) the Inland Empire (9.2%). Chart 1 includes more specific data on selected California exports of goods and services, as expressed in 2012 dollars (adjusted for inflation) and based on the Export Nation methodology. ----------------------------------------------------------------- | Chart 1 - Southern California Largest Metro Areas | | Exports (2007-2012)(in millions, adjusted for inflation) | ----------------------------------------------------------------- |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |Metropolitan | 2003 Exports | 2012 Exports | Export Share | Export in | Export in |Annualized | |Statistical | (millions) | (millions) | of GDP | Goods 2012 |Services 2012 |2009-2012 | |Area | | | | | |Growth in | | | | | | | |Manufacturing | | | | | | | |(Post-Recessio| | | | | | | |n) | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |El Centro, CA |432.7954 |586.8708 |9.3% |456.5946 |130.2762 | 8.9% | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |Los |62850.51 |93871.65 |12.0% |56462.39 |37409.26 | 4.0% | |Angeles-Long | | | | | | | |Beach-Santa | | | | | | | |Ana, CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |Oxnard-Thousan|3997.99 |6462.674 |15.2% |4822.016 |1640.658 | 3.8% | |d | | | | | | | |Oaks-Ventura, | | | | | | | |CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |Riverside-San |7999.825 |13128.07 |9.2% |8407.373 |4720.697 | 5.9% | |Bernardino-Ont| | | | | | | SB 511 Page 8 |ario, CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |San |11996.96 |21613.47 |11.5% |13702.52 |7910.954 | 7.2% | |Diego-Carlsbad| | | | | | | |-San Marcos, | | | | | | | |CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |San |15417.44 |38046.75 |12.5% |23306.12 |14740.64 | -0.7% | |Francisco-Oakl| | | | | | | |and-Fremont, | | | | | | | |CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| |San |21384.90 |34641.22 |23.8% |26418.39 |8222.831 | 10.9% | |Jose-Sunnyvale| | | | | | | |-Santa Clara, | | | | | | | |CA | | | | | | | |Metropolitan | | | | | | | |Statistical | | | | | | | |Area | | | | | | | -------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------- | Source: Export Nation 2013, Global Cities Initiative, a joint | |project of Brookings Institute and JP Morgan Chase | ----------------------------------------------------------------- According to research by the California Employment Development Department, the state's future economic growth will be strongly correlated to the strength of its trade-related industry sectors including advanced manufacturing, information technology, and professional services. The high growth potential of these industry sectors is based on their links to external markets, as well as internal markets in the U.S. and California. 4)California's Trade Framework : In California, the primary state agency responsible for state trade and foreign investment activity (excluding agriculture) is GO-Biz. Initially established in 2011, SB 511 Page 9 international trade responsibility was transferred from the Business, Transportation, and Housing Agency to GO-Biz in 2012. Among GO-Biz' assets are the Office of the Small Business Advocate, the Permit Assistance Unit, the Office of Foreign Trade and Investment, and the Business Investment Services Unit. [AB 29 (John A. Pérez), Chapter 475, Statutes of 2011 and AB 2012 (John A. Pérez), Chapter 294, Statutes of 2012] The Governor's Reorganization Plan transferred a number of additional economic development related entities under the purview of GO-Biz in 2012 including the California Travel and Tourism Commission, the I-Bank, the Small Business Loan Guarantee Program, and the California Film Commission. The graphic below illustrates the organization of GO-Biz. Areas of similar services or programs with SB 511 are marked with a *. SB 511 Page 10 In 2013, the Innovation Hub Program and the EB-5 investment visa program were codified under the administration of GO-Biz. There are 14 ihubs throughout California, each focusing on specific industry sectors including the Southern California Link that includes Riverside, San Bernardino, and Los Angeles Counties which collaborate on issues related to trade, manufacturing, and logistics. [AB 250 (Holden and V. Manuel Pérez), Chapter 530, Statutes of 2013] Also in 2013, a Small Business Finance Center was established within the I-Bank and the small business debt and credit enhancement programs were transferred from within GO-Biz to be managed under the auspices of the new Center. A range of finance programs are delivered through a statewide network of 11 small business finance development corporations (FDCs) using both state and federal Jobs Act funds. Among other financial products, the FDCs offer loan guarantees and lines of credit that can be used to support export activities. [AB 1247 (Medina and Bocanegra), Chapter 537, Statutes of 2013] In addition, GO-Biz is responsible for preparing the International Trade and Investment Strategy to guide state activities, oversee the use of federal money received through the State Trade and Export Promotion (STEP) Program, work with EB-5 investors and regional centers, provide data and track global business and trade trends, and to collaborate on the activities of California's new China Trade Office. STEP is a three-year pilot trade and export initiative authorized by the federal Small Business Jobs Act of 2010. The program is regionally administered through a partnership between GO-Biz and the California Community Colleges their network of Centers for International Trade and Development. The primary purpose of the program is to create jobs by increasing the number of, and the volume of, small businesses exporting. The California Trade and Investment Office in Shanghai is the first trade office opened under the AB 2012 program authority. The Trade Office is self-funded through private contributions and operates under a cooperative agreement between GO-Biz and the Bay Area Council, a San Francisco-headquartered nonprofit business organization. Opened in October 2012, the purpose of the Trade Office is to provide Californian companies increased access to Chinese business contacts, Chinese investors with access to California projects, and spur new investment and trade growth SB 511 Page 11 between California and China. SB 511 proposes the establishment of a number of new programs and the undertaking of new activities that are materially similar to existing programs and services. Overlaps include, but are not limited to: providing credit enhancements to assist small businesses access capital, marketing promotion activities, and technical assistance. These similar programs are identified with a * (see chart on previous page). As an example $2 million was just approved in 2014-15 budget for the Small Business Development Centers to assist small businesses prepare and access capital support including for those businesses interested in export activities. 5)California Export Activities : If California were a country, it would be the 17th largest exporter and the 14th largest importer in the world. Merchandise exports from California ($168 billion) accounted for over 10.6% of total U.S. exports in goods, shipping to over 220 foreign destinations in 2013. California's land, sea, and air ports of entry served as key international commercial gateways for the $538 billion in products entering and exiting the U.S. in 2012. Statewide, 4.4 million California jobs are dependent on foreign trade. Over 562,700 California workers benefit from jobs with foreign-owned firms, which accounts for 5.1% of all private sector jobs in the state. Mexico has been California's top trading partner since 1999 and in 2013, California exported $23.9 billion (14%) in goods. Chart 2 shows export data on the state's top five trade partners. Other top-ranking export destinations not shown on the chart include Hong Kong, Taiwan, Germany, the Netherlands, and the United Kingdom. -------------------------------------------------------------------- | Chart 2 - California Export based on Movement of Goods 2012 and | | 2013 | -------------------------------------------------------------------- |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | Rank | Country | 2012 Value | 2013 Value | 2012 % Share | 2013 % Share | % Change, | | | | | | | | 2012 - 2013 | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | --- |Total | 161,880| 168,128| 10.5| 10.6| 3.9| | |California | | | | | | | |Exports and % | | | | | | | |Share of U.S. | | | | | | SB 511 Page 12 | |Total | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | --- |Total, Top 25 | 143,671| 149,020| 88.8| 88.6| 3.7| | |Countries and | | | | | | | |% Share of | | | | | | | |State Total | | | | | | |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | 1 |Mexico | 26,370| 23,933| 16.3| 14.2| -9.2| |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | 2 |Canada | 17,424| 18,819| 10.8| 11.2| 8.0| |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | 3 |China | 13,970| 16,359| 8.6| 9.7| 17.1| |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | 4 |Japan | 13,033| 12,711| 8.1| 7.6| -2.5| |--------------+--------------+--------------+--------------+--------------+--------------+--------------| | 5 |South Korea | 8,246| 8,394| 5.1| 5.0| 1.8| -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------- |Source: tradeport.org | | | | | -------------------------------------------------------------------- California's largest industry sector by employment is Trade, Transportation, and Utilities, which encompasses everything from major retail outlets, to import-export businesses, to transportation and warehousing. California leads the nation in export-related jobs. The U.S. Department of Commerce estimates that for every one million dollars of increased trade activity, 11 new jobs are supported. Workers in trade-related jobs earn on average 13% to 28% higher wages than the national average. In today's globally linked economy, manufacturing utilizes products from across the U.S., as well as from other nations. In 2012, 61% ($1.3 trillion) of the products imported into the U.S. were inputs and components intended for use by American producers. In addition, U.S. imports often include components or benefited from services provided by U.S. firms, including many California companies. The Wilson Center estimates that Mexican imports and Canadian imports contain 40% and 20% U.S. components, respectively. Trade and foreign investment support new job creation, bring new technologies and skills to California workers, generate local and state revenues, and generally strengthen the state's economic base. In the future, California's economy will become increasingly reliant SB 511 Page 13 on accessing foreign markets where a majority of global economic growth is expected to occur. 6)National Export Initiative : In January 2010, the President launched the National Export Initiative with the goal of doubling U.S. exports over 5 years ($1.5 trillion to $3.17 trillion). The initiative is directed through a newly established Export Promotion Cabinet and an internal Trade Promotion Coordinating Committee which has been tasked to coordinate and align their export promotion activities including counseling, customer matchmaking services, and financing for exporters. Chart 3 shows the U.S.' progress toward meeting the national export goal. The chart was developed using a GAO analysis based on data from the U.S. Bureau of Economic Analysis. Priority initiatives include: a) Exports by small and medium-sized businesses b) Federal export assistance c) Increased export credit d) Reduced barriers to trade e) Export promotion of services As noted earlier in the analysis, California is currently participating in the federal STEP program. Over the term of the initiative, California exports have increased from $120 billion in 2009 to $169 billion in 2013, representing a 40% increase. 7)Export Competition: Domestic and Foreign : The California Center at the Milken Institute released a study in 2012 that considered what actions the state should consider in expanding export opportunities for California businesses. The report's major recommendation called for the state to develop and implement a comprehensive trade strategy that utilizes existing resources, leverages private sector expertise, focuses on key export destinations, and includes a detailed export promotion strategy. Top barriers to export promotion (cited from a prior BTH study) included regulatory problems, access to capital, difficulty in identifying foreign business partners, lack of internal resources and market knowledge, and the fragmented state of trade services offered by California. As shown in Chart 4, the California Center found that California's export growth fell far short of other states. By comparison, the study noted, states that had aggressively advanced trade promotion strategies were more successful including Florida, Alabama, and Pennsylvania. These strategies often included partnerships with private industry, overseas trade promotion, and trade assistance to SB 511 Page 14 exporting businesses. Other examples highlighted in the report included Germany and South Korea who both implemented robust trade strategies which included direct investment in export promotion. Germany also offered loan guarantees to small and medium-sized businesses and South Korea help businesses identify growing markets for goods and then assisting its companies to penetrate those markets. ------------------------------------------- -------------------------------------------- ------------------------------------------- In February 2014, GO-Biz issued the California International Trade and Investment Strategy, which called for expanding the export of California goods and services, and by increasing foreign direct investment into the state. Based on these guiding policy goals, the California strategy sets forth a comprehensive set of recommendations around six strategic objectives: 1. Develop a comprehensive, coordinated and cohesive strategy framework with a clear vision to expand trade and investment, which includes other relevant state agencies, with input from private and public sector stakeholders; 2. Implement more proactive outreach, awareness, education and engagement programs both within the state for California-based companies and through foreign partners and trade office(s); 3. Maximize China Trade Office resources and opportunities to expand exports and investment; 4. Develop an action plan to address key challenges facing our ports and related infrastructure to ensure their competitiveness; 5. Re-engage and strengthen 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; and 6. Develop and implement a more user-friendly, comprehensive, interactive and useful website to assist California companies wanting to export and to attract foreign investment. SB 511 could assist in the implementation of these strategic objectives and serve as a key facilitator for bringing resources together into a comprehensive network for services for smaller size exporting businesses. SB 511 Page 15 1)Amendments : In re-establishing the 2003 California Export Office in a 2014 GO-Biz administrative structure a number of technical issues arise including duplicative programs and services including, but not limited to, the Small Business Finance Center, Small Business Loan Guarantee Program, small business technical assistance, and coordination with federal small business and export related programs. While duplications exist, given the significant role that trade plays within the California economy, the Committee may wish to consider the following: a) Shifting the California Export Finance Office to a position within the Small Business Finance Center, which is located at the I-Bank; b) Expanding the Small Business Finance Center's existing authority to include insurance and co-insurance; c) Designating the I-Bank Board to set and adopt directives and requirements for the operations of the California Export Office (removes the need for regulations); and d) Expanding the scope of the Small Business Advisory Committee to include members with export experience. 2)Related Legislation : Below is a list of legislation from the current and prior legislative sessions. a) AB 1067 (Medina) EB-5 Immigration Oversight: This bill establishes the California Foreign Investment Program within the Governor's Office of Business and Economic Development to oversee the state's participation in the federal EB-5 foreign investment visa program. Among other things, this office will set the terms and conditions regarding the designation of targeted employment areas, as related to the EB-5 visas. Status: Signed by the Governor, Chapter 535, Statutes of 2013. b) AB 1545 (V. Manuel Pérez) Bi-National Infrastructure and Economic Development Bank: This bill would have expanded the role of the California Infrastructure and Economic Development Bank to include facilitating infrastructure and economic development financing activities within the California and Mexico border region. Status: Held on the Suspense File of the Senate Committee on Appropriations, 2012. c) AB 2012 (John A. Pérez) Economic Development Reorganization: This bill transferred the authority for undertaking international trade and foreign investment activities from the Business, SB 511 Page 16 Transportation and Housing Agency to the Governor's Office of Business and Economic Development. In addition, the bill transferred the responsibility for establishing an Internet-based permit assistance center from the Secretary of the California Environmental Protection Agency to GO-Biz. Status: Signed by the Governor, Chapter 294, Statutes of 2012. d) AB 2713 (Qurik-Silva) Public Private Partnerships to Promote Trade: This bill authorizes the Governor's Office of Business and Economic Development to establish public-private partnerships to help guide state activities related to the export of California products and the attraction of employment-producing foreign investment. The bill requires the establishment of a subaccount to hold private donation for county and industry-specific marketing activities. The bill also requires the establishment of a partnership to support California trade and investment within South Korea. Status: Pending in the Senate Appropriations Committee. e) AB 337 (Allen) Ports and International Trade Strategy: This bill requires the Governor's Office of Business and Economic Development (GO-Biz) to evaluate key issues affecting trade and foreign investment as part of the development of the previously mandated international trade and investment strategy. In undertaking this evaluation, GO-Biz is directed, to the greatest extent possible, to use existing reports and other resources. The evaluation required by this measure applies to the second update of the strategy, which should occur no later than February 1, 2019. Status: Pending in the Senate Appropriations Committee. f) SB 460 (Price) International Trade Marketing and Promotion: This bill would have required the Secretary of the Business, Transportation and Housing Agency to convene a statewide business partnership for international trade marketing and promotion. Status: Held on the Suspense File of the Assembly Committee on Appropriations, 2011. g) SB 592 (Lieu) Trade Promotion of California Ports: This bill would have required the Governor's Office of Business and Economic Development to provide a port trade promotion strategy to the Legislature and convene a statewide business partnership for port trade promotion. Status: Held on the Suspense File of the Assembly Committee on Appropriations, 2013. SB 511 Page 17 REGISTERED SUPPORT / OPPOSITION : Support California Association of Port Authorities California Small Business Association California State Controller California Trucking Association CleanTECH San Diego CONNECT Greater Los Angeles African American Chamber of Commerce Harbor Association of Industry & Commerce Jobs 1st Alliance Los Angeles County Economic Corporation National Association of Women Business Owners Port of San Diego Redondo Beach Chamber of Commerce Regional Economic Association Leader of California San Diego & Imperial District Export Council San Diego North Economic Development Council San Diego Regional Chamber of Commerce Southern California Association of Governments Southern California Leadership Council Southern California Leadership Council The California Contract Cities Association The California Export Finance Office The California Taxpayers Association The Greater Los Angeles African American Chamber of Commerce The Inland Empire Economic Partnership The Los Angeles Area Chamber of Commerce The Los Angeles Customs Brokers and Freight Forwarders Association, Inc. The North San Diego Business Chamber The Port of Los Angeles The San Diego East County Economic Development Council The San Diego Imperial District Export Council The Southern California Association of Governments The Valley Economic Development Center Opposition None received Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916) 319-2090 SB 511 Page 18