BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AJR 14|
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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:   (Verified6/10/15)


          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








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          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,  








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            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
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