BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AJR 14|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AJR 14
Author: Chu (D), et al.
Amended: 5/28/15 in Assembly
Vote: 21
ASSEMBLY FLOOR: 63-1, 5/28/15 - See last page for vote
SUBJECT: Export-Import Bank of the United States:
reauthorization
SOURCE: California Chamber of Commerce
DIGEST: This resolution memorializes the Legislature's desire
for the United States (U.S.) Congress to support legislation
reauthorizing the Export-Import Bank of the United States (Ex-Im
Bank).
ANALYSIS: This resolution makes the following legislative
findings:
1)The Ex-Im Bank is the official export credit agency of the
U.S. and exists for the purposes of financing and insuring
foreign purchases of U.S. goods for customers unable or
unwilling to accept the credit risk;
2)The Ex-Im Bank has supported more than $400 billion in U.S.
exports in the past 70 years and helps to cover critical trade
finance gaps by providing loan guarantees, export credit
insurance, and direct loans for U.S. exports in developing
markets where commercial bank financing is unavailable or
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insufficient. For federal fiscal year (FFY) 2014, the Ex-Im
Bank provided $20.5 billion in loan guarantees which leveraged
$27.5 billion in exports while supporting 164,000 U.S. jobs;
3)The Ex-Im Bank is a self-sustaining agency, which operates at
no cost to the taxpayer and over the last three fiscal years
has generated more than $3 billion in fees from its foreign
customers which were deposited in the U.S. Treasury to reduce
the U.S. deficit and indebtedness;
4)Over the past five years, the Ex-Im Bank has assisted more
than 967 California companies to export their products.
Nearly 200 of those companies are owned by women or minorities
and over 700 are small businesses. These companies export
their products and services around the globe totaling more
than $21 billion in sales. Fifty-two of the 53 congressional
districts in California had companies benefit from the Ex-Im
Bank loans; and
5)Legislation is pending before the 114th U.S. Congress that
would continue the Ex-Im Bank's capacity for creating jobs
while also making its practices more accountable and
transparent, as well as making the bank more solvent and
self-sufficient.
This resolution memorializes the Legislature's desire for the
U.S. Congress to support legislation reauthorizing the Ex-Im
Bank.
Background
The Ex-Im Bank is a wholly owned U.S. government corporation,
which was established by the U.S. Congress to provide
market-oriented public services and to produce revenues to meet
its expenditures. The Ex-Im Bank provides a variety of
financial and insurance products that are designed to fill gaps
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in private export financing. Its charter was last extended
through a FFY 2015 continuing resolution which expires June 30,
2015. The Ex-Im Bank operates at no cost to American taxpayers
and over the past two decades the Bank has generated nearly $7
billion more than the cost of its operations.
In the FFY 2014, the Ex-Im Bank approved $20.5 billion in
financial authorizations, which supported an estimated $27.5
billion in export sales and approximately 164,000 U.S. jobs. Of
the total transactions in 2014, approximately 89% (3,347) were
with small business for a total of $5.9 billion.
Between 2012 and 2015, $7 billion in financial authorizations
went to 704 California exporters, which supported $14 billion in
exports. Of those exporters, 533 were small businesses, 90 were
minority-owned businesses, 63 were women-owned businesses, 10
were businesses in renewable energy, and 34 were environmentally
beneficial.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified6/3/15)
California Chamber of Commerce (source)
Auto Care Association
Boeing
Brea Chamber of Commerce
Caterpillar
El Centro Chamber of Commerce and Visitors Bureau
Ex-Im Coalition
Fullerton Chamber of Commerce
Greater Riverside Chamber of Commerce
Indio Chamber of Commerce
Irvine Chamber of Commerce
Lodi Chamber of Commerce
Long Beach Area Chamber of Commerce
Oxnard Chamber of Commerce
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Palm Desert Area Chamber of Commerce
Redondo Beach Chamber of Commerce
San Diego Regional Chamber of Commerce
San Jose Silicon Valley Chamber of Commerce
Santa Clara Chamber of Commerce and Visitors Bureau
South Bay Association Chamber of Commerce
Southwest California Legislative Council
Torrance Chamber of Commerce
OPPOSITION: (Verified6/3/15)
None received
ARGUMENTS IN SUPPORT: Boeing states in support:
Over the past 80 years, the Export-Import (Ex-Im) Bank of
the United States has been providing an essential service
to companies that operate in the U.S. and export their
products. AJR 14 recognizes the vital role the Ex-Im Bank
plays in job creation and economic growth, both for large
and small businesses alike. Accordingly, we support AJR 14
and recommend passage by the California State Legislature.
ASSEMBLY FLOOR: 63-1, 5/28/15
AYES: Alejo, Travis Allen, Baker, Bonilla, Bonta, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina
Garcia, Eduardo Garcia, Gipson, Gonzalez, Gordon, Gray,
Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer,
Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen,
Patterson, Perea, Quirk, Ridley-Thomas, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Weber, Wilk,
Williams, Wood, Atkins
NOES: Gatto
NO VOTE RECORDED: Achadjian, Bigelow, Bloom, Brough, Dahle,
Beth Gaines, Gallagher, Gomez, Grove, Harper, Mayes, Melendez,
Obernolte, Rendon, Rodriguez, Waldron
AJR 14
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Prepared by: Jonas Austin / SFA / (916) 651-1520
6/5/15 9:45:20
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