BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AJR 14| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AJR 14 Page 2 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 AJR 14 Page 3 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: (Verified6/10/15) California Chamber of Commerce (source) Auto Care Association Boeing Brea Chamber of Commerce Caterpillar Desert Hot Springs Chamber of Commerce and Visitors Center 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 AJR 14 Page 4 Oxnard Chamber of Commerce 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 Simi Valley Chamber of Commerce South Bay Association of Chamber of Commerce Southwest California Legislative Council Torrance Chamber of Commerce OPPOSITION: (Verified6/10/15) 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, AJR 14 Page 5 Beth Gaines, Gallagher, Gomez, Grove, Harper, Mayes, Melendez, Obernolte, Rendon, Rodriguez, Waldron Prepared by: Jonas Austin / SFA / (916) 651-1520 6/10/15 14:25:57 **** END ****