BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 592 (Price) - Trade Promotion of California Ports
          
          Amended: As Introduced          Policy Vote: BP&ED 10-0
          Urgency: Yes                    Mandate: No
          Hearing Date: April 15, 2013                            
          Consultant: Robert Ingenito     
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 592, an urgency measure, would require the  
          Governor's Office of Business and Economic Development (GO-Biz)  
          (1) to provide a port trade promotion strategy to the  
          Legislature on or before April 1, 2014, and (2) to convene a  
          statewide business partnership for port trade promotion.   

          Fiscal Impact: GO-Biz estimates that it would require $150,000  
          (General Fund) to fund one position for six months to implement  
          the provisions of the bill.

          Background: Current law establishes eleven ports in the State,  
          ranging geographically from San Diego to Humboldt Bay. Available  
          data indicate that 40 percent of the nation's imports and 30  
          percent of its exports move through California ports.

          Panama is currently increasing the shipping capacity of the  
          Panama Canal. Specifically, the project will reportedly double  
          the capacity of the canal, such that it will be able to  
          accommodate larger cargo ships than is the case currently.  
          Consequently, shipping from Asia that currently utilizes  
          California ports could bypass them and instead move through the  
          canal destined for ports in the Eastern United States. To the  
          extent that this occurs, California would lose cargo business,  
          which could, in turn, negatively impact the State's economy and  
          employment, particularly in communities located near the ports. 

          Proposed Law: SB 592 would require GO-Biz to provide a trade  
          promotion strategy for California ports to the Legislature by  
          April 1, 2014, that includes:

             1)   Policy goals, objectives and recommendations necessary  
               to implement a comprehensive port trade promotion strategy.








          SB 592 (Price)
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             2)   Measurable outcomes and timelines for the goals,  
               objectives and actions of promoting trade at ports. 

             3)   Impediments to achieving goals and objectives.

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

             5)   Options for funding the recommended actions.




          Additionally, the measure would require GO-Biz to convene a  
          statewide business partnership comprised of specified  
          stakeholders to advise it on the port trade promotion strategy  
          by February 1, 2014. 

          Related Legislation: There are currently eight measures moving  
          through the Legislature to improve and promote opportunities for  
          California business to engage in international trade.