BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                          AJR 3

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       Date of Hearing:  June 21, 2016


                                Eduardo Garcia, Chair

       AJR 3  
       (Alejo) - As Amended May 19, 2016

       SUBJECT:  Cuban embargo

       SUMMARY:  Memorializes the California Legislature's support for full  
       normalization of diplomatic relations with Cuba and calls on the U.S.  
       Congress to advance legislation remove barriers full diplomatic  
       relations and to help increase trade between the U.S. and Cuba.   
       Specifically, this bill:

       1)Makes a number of declarations, including, but not limited to:

          a)   The Obama administration announced that new regulations would  
            be proposed at the U.S. Department of the Treasury and the U.S.  
            Department of Commerce that would allow for more exports of  
            certain products to Cuba; 

          b)   The U.S. and Cuba recently signed an agreement to restore  
            commercial airline service between both countries. Potential air  
            travel could be as high as 115 flights per day.  Authorized travel  


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            to Cuba by U.S. citizens has already increased by over 50% since  
            travel restrictions were eased in December 2014; 

          c)   Prior to the 1960 U.S. embargo, the U.S. accounted for nearly  
            70% of Cuba's international trade, with nearly 84% of all food  
            consumed in Cuba being imported;

          d)   In 2000, under the Trade Sanctions Reform and Export  
            Enhancement Act (TSRA), the U.S. Congress began to allow the sale  
            of agricultural and medical products to Cuba. In four years, U.S.  
            exports to Cuba rose from less than $1 million to $392 million by  
            2004, with U.S. agricultural products capturing 42% of the Cuban  
            market.  A 2001 study sponsored by the Cuba Policy Foundation  
            found the estimated economic impact of expanded agricultural  
            exports under the TSRA is $3.6 billion;

          e)   A report by the U.S. International Trade Commission states that  
            small exporters currently avoid the Cuban market because of the  
            complexity of TSRA regulations; 

          f)   Studies show that lifting the embargo could result in an  
            economic spark of $1.1 billion, $365 million from sales of U.S.  
            goods, and a creation of up to 6,000 American jobs, predominantly  
            in agriculture, and telecommunications;  

          g)   California is currently the eighth largest economy in the world  
            but exported only $122,000 in agricultural products to Cuba in  
            2013.  According to the U.S. Department of Agriculture's Economic  
            Research Service data for 2013, each dollar of agricultural  
            exports stimulated an additional $1.22 in business activity,  


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            thereby further highlighting the potential for creating American  
            jobs through California agricultural exports; 

          h)   As Cuba raises its agricultural profile, Cuba will need food  
            manufacturing technology and education on effective practices that  
            Californian expertise can provide; and

          i)   As a growing middle class rises, Cuba will require and be able  
            to pay for new infrastructure, including telecommunications,  
            medical devices, and pharmaceuticals.  

          j)   The U.S. will also benefit from Cuba's current expertise in  
            providing high-quality, low-cost medicines, including vaccines.

       2)Resolves that the California Legislature urges the U.S. Congress to  
         support President Obama's initiative to normalize diplomatic  
         relations with Cuba and to move forward with legislation to help  
         increase trade with Cuba.

       3)Resolves that the Chief Clerk of the Assembly transmit copies of this  
         resolution to the U.S. President and Vice President and to the  
         leadership in U.S. Senate and House of Representatives.  

       FISCAL EFFECT:  None



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       The U.S. has maintained an economic, commercial, and financial embargo  
       of Cuba for more than 50 years.  Since the removal of Soviet financial  
       backing in the 1990s, Cuba has faced even more severe econmic  
       difficulties.  Cuba has routinely used the status of the embargo, both  
       internally and with the world at-large, as the primary reason for their  
       economic problems.  For 26 consecutive years, the United Nations has  
       annually passed a resolution calling for the lift of the embargo and  
       condemning the U.S. for using access to food as a tool to gain a  
       political objective.  Since the embargo, the U.S. has almost  
       consistently accepted Cuban asylum seekers and supported their  
       adjustment to permanent resident status.  

       In December 2014, President Obama called for a new path forward for  
       U.S. and Cuba relations, which included the normalization of foreign  
       relations and the lifting of all special sanctions.  In taking this  
       unprecedented action, President Obama said "it was clear that decades  
       of U.S. isolation of Cuba had failed to accomplish our enduring  
       objective of promoting the emergence of a democratic, prosperous, and  
       stable Cuba."  In the ensuing months, the Obama Administration has  
       taken a wide range of regulatory steps toward normalization.  A 2015  
       Poll by the Pew Research Center found that 73% of Americans approve the  
       thawing of relations between the U.S. and Cuba and the reestablishment  
       of trade relations.

       This resolution expresses the California Legislature's support for  
       lifting sanctions and taking concrete steps to expand trade  
       opportunities with Cuba.  The analysis includes background on U.S.  
       relations with Cuba, human rights challenges, and California's  
       important role in advising on federal issues impacting the economic  
       conditions of California.  Amendments are discussed in Comment #7.


       1)Author Purpose:  According to the Author, "AJR 3 was created as a way  
         to urge the United States Congress to recognize the importance of  
         supporting the Obama Administration for improving trade relations  


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         with the Cuban government. By normalizing trade relations with Cuba,  
         California and its small and medium-sized enterprises would have  
         access to a much needed market, and allowing them to provide produce  
         and telecommunication goods to a developing market. Cuba is in the  
         beginning stages of creating a private industry sector for small  
         business, as well as tourism, and to create construction jobs for the  
         improvement of their crumbling infrastructure. A healthy trade  
         partnership with Cuba would create thousands of new American jobs,  
         and bring revenue and economic development for our country and the  
         state of California. This bill will allow the Legislature of the  
         State of California to continue its worldwide leadership role by  
         expressing their support for normalizing trade relations with Cuba,  
         and to champion a positive worldwide outcome."
       2)U.S. Relations with Cuba:  Western European influence in Cuba began  
         with the first voyage of Christopher Columbus in 1492.  Cuba was  
         claimed and held by Spain for the next several centuries.  African  
         slaves were imported to work on coffee and sugar plantations.  Harsh  
         conditions for the native peoples under Spanish rule resulted in a  
         number of unsuccessful independence movements.  Ultimately, U.S.  
         intervention during the Spanish-American War and the Treaty of Paris  
         established Cuban independence from Spain in 1898.  Following  
         three-and-a-half years of U.S. military rule, Cuba became an  
         independent republic in 1902.  Subsequent Cuban governments,  
         according to the World Fact Book, have been primarily dominated by  
         the military and corrupt politicians that failed to provide  
         broad-based prosperity to the people of Cuba.

         In 1959, Fidel Castro, led a rebel army that overthrew a U.S.-backed  
         government and established a communist government that has held  
         uninterrupted power up to today.  Castro stepped down as president in  
         February 2008 and selected his younger brother Raul Castro as the  
         next and current president.  Cuba's communist revolution, with Soviet  
         support, was exported to other areas of South and Central America and  
         Africa during the 1960s, 1970s, and 1980s.  With the demise of the  
         Soviet Union in the 1990s, Cuba's subsidies ($4 to $6 billion  
         annually) were eliminated, resulting in great economic hardship for  
         the people.

         Illegal migration of Cubans seeking asylum in the U.S. has continued  
         throughout the nearly 60 years since the revolution.  In FY 2014, the  


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         U.S. Coast Guard interdicted 2,111 Cuban nationals at sea, the  
         highest number since FY 2008.  Also in FY 2014, 24,289 Cuban migrants  
         presented themselves at various land border ports of entry throughout  
         the U.S. 

         U.S. President Barak Obama initiated the re-establishment of  
         diplomatic relations with the Cuban government in December 2014, with  
         the reopening of U.S. and Cuban embassies in their respective  
         countries in July 2015.  The first visit of a sitting U.S. President  
         in nearly 90 years, occurred when President Obama, his wife, and two  
         daughters visited Havana in March 2016.  The chart below provides a  
         historical outline of the U.S.' trade relationship with Cuba.

          |  The Trade Relationship Between the U.S. and Cuba (1961 to 2016)   |
          |Ending Relations with Cuba                                          |
          |January   |The U.S. severs diplomatic relations with Cuba.         |
          |1961      |                                                        |
          |April     |The Bay of Pigs invasion is launched.                   |
          |1961      |                                                        |
          |September |The Foreign Assistance Act of 1961authorizes the        |
          |1961      |President to establish and maintain "a total embargo    |
          |          |upon all trade between Cuba and the U.S."               |
          |February  |The Kennedy Administration extends the embargo to       |
          |1962      |prohibit imports into the U.S.                          |
          |March     |The embargo is further tightened to prohibit imports    |
          |1962      |into the U.S. from any country, if those goods were     |
          |          |made in or contained Cuban materials.                   |
          |February  |The Kennedy Administration prohibits U.S.               |


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          |1963      |government-purchased cargoes from being transported on  |
          |          |foreign flag vessels which had called at a Cuban port.  |
          |July 1963 |The U.S. Treasury publish the Cuban Assets Control      |
          |          |Regulations.  These regulations embody the essential    |
          |          |features of the U.S. economic embargo against Cuba that |
          |          |have been in effect ever since, including a freeze on   |
          |          |all Cuban-owned assets in the U.S. and a prohibition on |
          |          |all non-licensed financial and commercial transactions  |
          |          |between Cuba and the U.S. and between Cuban and U.S.    |
          |          |nationals (including the spending of money by U.S.      |
          |          |citizens in the course of travel to Cuba).              |
          |1966      |The Cuban Adjustment Act of 1966 is enacted, which      |
          |          |allows Cubans arriving in the U.S. without immigration  |
          |          |documentation to stay and adjust to permanent resident  |
          |          |status.                                                 |
          |1976      |The U.S. Immigration and Nationality Act amends the     |
          |          |Cuban Adjustment Act by exempting Cuban immigration     |
          |          |from the numerical limitations in the U.S. preference   |
          |          |system.                                                 |
          |1980      |The Refugee Act of 1980 is enacted, which reduces the   |
          |          |time Cuban immigrants must stay in the country in order |
          |          |to adjust to permanent resident status from two years   |
          |          |to one year.                                            |
          |More Recent Developments                                            |
          |1994      |The U.S.-Cuba Migration Accord is signed under which    |
          |          |the U.S. agreed to admit at least 20,000 Cubans per     |
          |          |year directly from Cuba through legal channels.  In     |
          |          |exchange Cuba pledged to prevent further unlawful       |
          |          |departures by rafters.  The objective of the Accord was |
          |          |to provide for the safe, legal and orderly immigration  |
          |          |to the U.S.                                             |


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          |1995      |The second U.S. Cuban Migration Accord is signed to     |
          |          |address the outcome of the approximately 33,000 Cubans  |
          |          |who were encamped at Guantanamo.  These individuals had |
          |          |been relocated to Guantanamo, when the U.S. had         |
          |          |temporally implemented a policy of intercepting Cuban   |
          |          |asylum seekers before they could reach U.S. soil.       |
          |1996      |The Cuba Liberty and Democratic Solidarity Act (the     |
          |          |"Helms-Burton Act") becomes law.  The act seeks to      |
          |          |strengthen international sanctions against Cuba.  Among |
          |          |other measures, the Helms-Burton Act required the       |
          |          |preparation of a plan for U.S. assistance to help       |
          |          |transition Cuba to a democratically elected form of     |
          |          |government.  The Helms-Burton Act also codified the     |
          |          |existing Cuban Asset Control Regulations, which meant   |
          |          |that future substantives changes would require U.S.     |
          |          |Congressional action.                                   |
          |1998      |The U.S. eases restrictions on the sending of money to  |
          |          |relatives by Cuban Americans.                           |
          |2000      |Trade Sanctions Reform and Export Enhancement Act is    |
          |          |adopted which allows for the sale of agricultural and   |
          |          |medical products to Cuba.                               |
          |2001      |U.S. food exports are allowed to Cuba for the first     |
          |          |time in 40 years after a request comes from the Cuban   |
          |          |government following Hurricane Michelle.                |
          |          |                                                        |
          |          |                                                        |
          |2003      |President George Bush implements measures to hasten the |
          |          |end of communist rule in Cuba, including tightening of  |
          |          |travel restrictions, increasing enforcement on illegal  |
          |          |cash transfers, and a more vigorous information         |
          |          |campaign against Cuba.                                  |
          |          |                                                        |
          |          |                                                        |
          |2008      |During his first U.S. presidential campaign, Barack     |


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          |          |Obama stated he would seek to change U.S. policy        |
          |          |regarding Cuba by allowing unlimited family travel and  |
          |          |remittances to Cuba.                                    |
          |          |                                                        |
          |          |                                                        |
          |December  |President Obama issues statement about charting a new   |
          |2014      |course on Cuba, which includes the re-establishment of  |
          |          |diplomatic relations with Cuba.                         |
          |          |                                                        |
          |          |                                                        |
          |January   |The U.S. initiates a new round of talks under 1994-95   |
          |2015      |U.S. Cuba Migration Accords.  These were the first      |
          |          |talks held after the policy changes announced in        |
          |          |December 2014 and reflected the new emphasis of         |
          |          |engagement and dialogue.                                |
          |          |                                                        |
          |          |                                                        |
          |July 2015 | The U.S. and Cuba reestablish diplomatic relations by |
          |          |  opening embassies in each other's capitols.           |
          |          |                                                        |
          |          |                                                        |
          |          |                                                        |
          |          | General licenses become available for authorized      |
          |          |  travelers under 12 official travel categories: (1)    |
          |          |  family visits, (2) official business of the U.S.      |
          |          |  government and certain intergovernmental              |
          |          |  organizations; (3) journalistic activities; (4)       |
          |          |  professional research and professional meetings; (5)  |
          |          |  educational activities; (6) religious activities; (7) |
          |          |  public performances, clinics, athletics and other     |
          |          |  competitions; (8) support for the Cuban people; (9)   |
          |          |  humanitarian projects; (10) activities of private     |
          |          |  foundations, research, or educational activities;     |
          |          |  (11) exportation, importation, or transmission of     |
          |          |  information or information materials; and (12)        |
          |          |  certain export transactions.                          |


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          |September |Revisions to the Cuban Assets Control Regulations and   |
          |2015      |the Export Administration Regulations are announced to  |
          |          |authorize, among other things:                          |
          |          |                                                        |
          |          |                                                        |
          |          |                                                        |
          |          |                                                        |
          |          |                                                        |
          |          | The transport of certain travelers sea under a        |
          |          |  general license;                                      |
          |          | Persons subject to U.S. jurisdiction to establish     |
          |          |  telecommunication and internet-based businesses in    |
          |          |  Cuba;                                                 |
          |          |                                                        |
          |          |                                                        |
          |          | Banking institutions to open and maintain accounts    |
          |          |  for Cuban individuals for use while he or she is      |
          |          |  located outside Cuba;                                 |
          |          |                                                        |
          |          |                                                        |
          |          | Certain commodities and software for use in software  |
          |          |  development will be allowed to be exported and        |
          |          |  reexported to eligible users in Cuba;                 |
          |          |                                                        |
          |          |                                                        |
          |          | Limits on donative remittances, except to the Cuban   |
          |          |  government or Communist Party, are eliminated; and a  |
          |          |  range of other actions related to commerce.           |
          |          |                                                        |
          |          |                                                        |
          |November  |U.S. and Cuba hold binational migration talks based on  |
          |2015      |the further implementation of the 1994-95 U.S. Cuba     |
          |          |Migration Accords.  The Whitehouse states that there is |
          |          |no plan to alter the current migration policy regarding |
          |          |Cuba.                                                   |
          |January   | President Obama issues Presidential Memorandum to the |
          |2016      |  U.S. Trade Representative relative to the Bipartisan  |
          |          |  Congressional Trade Priorities and Accountability Act |


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          |          |  of 2015.                                              |
          |          | The U.S. Department of Commerce issues final rule for |
          |          |  the creation of a License Exception Support for the   |
          |          |  Cuban People, which authorizes the export and         |
          |          |  reexport, without license, of certain items that are  |
          |          |  intended to improve the living conditions of the      |
          |          |  people of Cuba.  The new policy also authorized a     |
          |          |  case-by-case license review of telecommunication      |
          |          |  devises.                                              |
          |          | U.S. Treasury amends restrictions regarding the entry |
          |          |  into blocked airspace, code-sharing, and leasing      |
          |          |  arrangements to facilitate carrier services by air.   |
          |          |  This is expected to ease transportation sanctions     |
          |          |  which allow up to 110 non-stop flights per day        |
          |          |  between the U.S. and Cuba.                            |
          |March     | Travel restrictions are lifted for individuals who    |
          |2016      |  are traveling to Cuba for people-to-people            |
          |          |  educational travel, provided that the traveler        |
          |          |  participates in a full schedule of educational        |
          |          |  activities.  This change is intended to make          |
          |          |  authorized educational travel more accessible and     |
          |          |  less expensive to U.S. citizens.  The statutory       |
          |          |  prohibition on travel for tourist activities remains  |
          |          |  in place.                                             |
          |          | Cuban nationals in the U.S. under a non-immigrant     |
          |          |  status are allowed to earn a salary, consistent with  |
          |          |  their particular visa category.  U.S. companies are   |
          |          |  authorized to sponsor or hire Cuban nationals to work |
          |          |  or perform in the U.S. under similar conditions as    |
          |          |  other foreign nationals.   Particularly focused on    |
          |          |  artists, performers, and athletes.                    |
          |April     |Regulatory changes are made to the Cuban Assets Control |
          |2016      |Regulation to allow importation of certain goods        |
          |          |produced by independent Cuban entrepreneurs.  Products  |
          |          |NOT covered include, but are not limited to, animal,    |
          |          |vegetable, and mineral products, vehicles and           |
          |          |associated transportation equipment, arms and           |
          |          |munitions, machinery and electronical equipment,        |


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          |          |alcohol, and tobacco.                                   |
          |      Source:  Multiple sources including press statements, Federal |
          | Register publications, and news stories.  Not all sources could be |
          |corroborated by official documents.                                 |

       1)President's 2016 Proclamation:  In February of 2016, President Obama  
         issued Presidential Proclamation (PP) officially modifying the U.S.'s  
         position on the Cuba.  The PP noted that the underlying conditions  
         which necessitated the national emergency were no longer relevant and  
         that the U.S.' longstanding policy had, at times, resulted in the  
         U.S. being isolated from regional and international partners and  
         being limited in its ability to influence outcomes in the Western  
         Hemisphere.  The policy also, according to the PP, impaired the U.S.'  
         ability to promote positive change in Cuba. 

         The PP cited the U.S. intention and commitment to work with Cuba on  
         matters of mutual concern including migration, human rights,  
         counter-narcotics, environmental protection, and human trafficking.   
         In moving forward on these actions, it is the U.S.' overarching  
         objective to stabilize the region and to stem the flow of Cuban  
         nationals to U.S., which have had a destabilizing effect on  
         neighboring countries.

         As the chart above outlines, since President Obama first announced a  
         new path forward with Cuba in December 2014, the Administration has  
         taken many steps toward removing barriers to full diplomatic  
         relations.  With each of these actions, the positon of many Americans  
         has also been evolving.   A February 2016 Gallup Poll found that a  
         majority of Americans view Cuba favorably, an increase of 16 points  
         from two years ago and 33 points from 2006.  According to Gallup, the  
         largest shift in public opinion came in the summer of 2015 when  
         formal diplomatic relations were restored and both countries opened  
         embassies.   The highest unfavorable rating was in 1996 when the U.S.  
         Congress passed the Helms-Burton Act.


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       2)Federal Legislation:  The U.S. Congress is currently considering  
         legislation that would effectuate the purposes of this resolution,  
         including, but not limited to, HR 3238 (Emmer R-Minnesota) The Cuba  
         Trade Act of 2015.  This bill is currently pending before the U.S.  
         House of Representative's Subcommittee on Trade.  There are 23  
         co-authors (12-Dem and 11-Rep), including California Representatives  
         Sam Farr, Barbara Lee, and Ann Eshoo.  A summary of the changes, as  
         identified by the Congressional Research Service are described below.

          a)   The Cuban Democracy Act of 1992 is amended to eliminate:

            i)     Presidential authority to impose sanctions against Cuban  
              trading partners;
            ii)    Restrictions on transactions between U.S.-owned or  
              controlled firms and Cuba; and
            iii)   Limitations on direct shipping between Cuban and U.S.  
              ports, and restrictions on remittances.

          b)   The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of  
            1996 is amended to eliminate:

            i)     The enforcement of an economic embargo of Cuban provisions;  
            ii)    The prohibition on indirect financing of Cuba.

          c)   The Trade Sanctions Reform and Export Enhancement Act of 2000  
            is amended to:

            i)     Remove Cuba from the list of state sponsors of terrorism  
              subject to agricultural and medical export restrictions;
            ii)    Eliminate the prohibition on U.S. assistance, including  
              foreign assistance, export assistance, and any credit or  
              guarantees being made available for exports to Cuba;
            iii)   Eliminate the prohibition against a U.S. person's providing  
              payment or financing terms for sales of agricultural commodities  
              or products to Cuba;
            iv)    Prohibit the U.S from providing any foreign assistance to  
              Cuba or any financial assistance, loans, loan guarantees,  
              extension of credit, or other financing for exports to Cuba; and
            v)     Eliminate the prohibition on the U.S. entry of merchandise  


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              that is of Cuban origin is or has been located in or transported  
              from or through Cuba, or is made or derived in whole or in part  
              of any article which is the growth, produce, or manufacture of  

          d)   The federal government is prohibited from obligating or  
            expending funds to promote trade with or develop markets in Cuba,  
            except for certain commodity promotion programs.

       3)Human Rights in Cuba:  The harsh treatment of individuals who are  
         considered counter-revolutionary, including journalists, teachers,  
         and human rights activities have been well documented.   According to  
         Human Rights Watch, "The Cuban government continues to repress  
         dissent and discourage public criticism. While in recent years it has  
         relied less on long-term prison sentences to punish its critics,  
         short-term arbitrary arrests of human rights defenders, independent  
         journalists, and other critics have increased dramatically. Other  
         repressive tactics employed by the government include beatings,  
         public acts of shaming, and the termination of employment."

         Freedom House, a U.S. based nonprofit that annually produces a  
         comparative assessment of over 195 countries, scored Cuba a 6 out 7  
         (7 being the worst) for its actions related to civil liberties.   
         Among other concerns raised was the escalation of short-term  
         "preventative" detentions, which further eroded core civil rights  
         such as freedom of the press, expression, belief, and assembly.   
         Freedom House notes in their 2015 assessment that the Cuban Council  
         of State has complete control over the courts and the judiciary.   
         Cuba does not regularly grant international humanitarian  
         organizations access to prisons and Cubans of African descent have  
         been reported to experience widespread discrimination.

         While human rights groups express significant concerns over the abuse  
         of human rights, including arbitrary detentions in which individuals  
         are beaten, threatened, and held incommunicado for hours and days,  
         groups like Human Rights Watch, also believe that the U.S. sanctions  
         have imposed indiscriminate hardship on the Cuban people and have  
         done little to address the country's poor record on human rights.  

         These concerns over the impact of U.S. sanctions on the Cuban people  


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         have also been repeatedly and consistently expressed through  
         resolutions adopted by the General Assembly of the United Nations.   
         In October 2014, 188 of the 192 member countries voted to approve a  
         resolution that called on the U.S. to end its economic, commercial,  
         and financial embargo of Cuba.  Among other issues, the resolution  
         called on the U.S. to refrain from applying laws and regulations,  
         such as the 1996 Helms-Burton Act, and that food should not be used  
         as an instrument for political and econmic pressure.

         In announcing the U.S.' intent to normalize diplomatic relations with  
         Cuba and ease restrictions on travel and commerce, President Obama  
         noted that these changes in U.S. policy were predicated on key  
         concessions by the Cuban government, including a commitment to  
         release 53 political prisoners and to allow visits by international  
         human rights monitors.  President Obama has also stated that human  
         rights will be a "critical focus" to the U.S. continued engagement.

       4)State's role in Federal Trade Policy:  U.S. trade policy is developed  
         within a framework that envisions active participation by both the  
         Administrative and Legislative branches, as well as input from states  
         and the public at-large.

         One component of this consultation process is led by the U.S. Trade  
         Representative (USTR) who regularly seeks the input of states through  
         a Governor appointed State Point of Contract (SPOC).  California has  
         chosen to codify this federal-state consultation process by defining  
         the role of the SPOC in statute.  Not only is the SPOC the designated  
         trade policy liaison between the Administration and Legislative  
         branches, but the individual is also tasked with assisting the  
         Legislature in assessing the impact of federal trade policy on  
         California.  In addition to the SPOC process, the USTR maintains  
         nearly 30 trade-related advisory committees, including the  
         Intergovernmental Policy Advisory Committee on Trade (IGPAC).  The  
         IGPAC is currently comprised of 24 state and local officials,  
         including members of state legislatures, state trade directors, and  
         related national associations.  Mark Chandler with the City and  
         County of San Francisco is the only California member of the IGPAC. 

         Another component of the consultation process is the ability of  
         states to speak directly to the U.S. President and Congress.  Given  


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         the significance of the trade and foreign investment to the  
         California economy, the Legislature has regularly weighed-in on  
         important trade-related discussions.  These issues range for export  
         finance, the foreign investor visa program, infrastructure  
         development, and trade agreements.  Comment 8 includes a partial list  
         of related resolutions expressing California's position on trade and  
         matters of foreign relations.  

       5)Amendments:  Staff understands that the author will offer additional  
         whereas clauses to be adopted by the Committee.  These provisions are  
         intended to provide a further framework for the Legislature's support  
         for normalizing relations with Cuba.  In summary, this language  
         includes the following:

          a)   WHEREAS, California is the main producer, in the U.S, of  
            delicate fresh fruits and vegetables such as strawberries,  
            raspberries, lettuce, broccoli, artichokes, and cauliflower, that  
            contain essential vitamins and minerals needed for daily nutrition  
            that Cuba's population could benefit from; 

          b)   WHEREAS, California would benefit from Cuba's medical advances  
            in lung cancer, diabetic foot ulcer, and advanced head and neck  
            tumor treatment, and the opportunity to conduct further research  
            on Cuba's medical accomplishments; 

          c)   WHEREAS, California's 89,000 Cuban Americans would benefit from  
            normalizing trade relations with Cuba by permitting air travel to  
            and from Cuba, and for remittance practice purposes; and

          d)   WHEREAS, by normalizing trade relations would enable  
            California, the Cuban Government and its people to exchange  
            dialogue, and a better opportunity for influence on one another in  
            regards to human right practices.

       6)Related Legislation:  Below is a list of the related bills.  The  
         first subsection is a list of bills related to Cuba and the second  
         subsection includes resolutions to the U.S. Congress on trade related  

          a)   Cuba-related legislation:


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            i)     SCR 79 (Murry, Alpert, Burton, Figueroa, and Karnett)  
              Sister State Relationship with Cuba:  This resolution would have  
              extended an invitation to the people of Cuba, to join with  
              California in a sister state relationship that would have  
              facilitated the exchange of cultural and environmental  
              information and ultimately promoted mutual international trade  
              and commerce between Cuba and California. Status:  Died on the  
              Senate Inactive File, 2002.

            ii)    SJR 39 (Burton, Alpert, Figueroa, Karnette, Murray, and  
              Romero) Removal of Trade Restrictions:  This resolution urges  
              the President and Congress of the U.S. to consider the removal  
              of trade, financial, and travel restrictions to Cuba.  Status:   
              Adopted, Resolution Chapter 136, Statutes of 2002.

            iii)   SJR 36 (Cedillo) Removal of Trade Restrictions:  This  
              resolution urges the President and the Congress of the U.S. to  
              consider the removal of commercial, economic, and financial  
              restrictions relating to agricultural sales to Cuba.  Status:   
              Held at the Assembly Desk, 2010.

          b)   Resolutions expressing California's position on U.S. Trade  
            Policy and related issues:

            i)     AJR 4 (Hueso and V. Manuel Pérez) United States-Mexico  
              Border Infrastructure:  This resolution states the Legislature's  
              support for federal funding of necessary infrastructure  
              improvements to the San Ysidro, Calexico, and Otay Mesa Ports of  
              Entry.  Status:  Adopted by the Legislature, Resolution 24,  
              Statutes of 2013.

            ii)    AJR 12 (Gatto) Foreign Minimum Wage:  This resolution  
              states the Legislature's support for raising minimum wage in  
              foreign countries when discussing international treaties and  
              trade agreements.  Status:  Adopted by the Legislature,  
              Resolution 152, Statutes of 2013.

            iii)   AJR 37 (Muratsuchi) Export-Import Bank of the United  
              States:  This resolution expresses Legislature's support for  


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              reauthorizing the Export-Import Bank of the United States.   
              Status:  Adopted by the Legislature, Resolution 72, Statutes of  

            iv)    AJR 53 (Rendon) National Freight Network Trust Fund Act of  
              2014:  This resolution expresses the Legislature's support for  
              the passage and enactment of the National Freight Network Trust  
              Fund Act of 2014, which would provide a dedicated federal  
              funding source for freight-related transportation projects.   
              Status:  Adopted by the Legislature, Resolution 167, Statutes of  

            v)     SR 20 (Emmerson, Berryhill, DeSaulnier, Liu, Steinberg,  
              Walters, and Wright) Transatlantic Trade and Investment  
              Partnership*:  This resolution urges the President and United  
              States Senate to negotiate and ratify, respectively, the  
              Transatlantic Trade and Investment Partnership agreement with  
              the European Union.  Status:  Approved, by the Senate, Statutes  



       American Federation of State, County and Municipal Employees, AFL-CIO


       None Received


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       Analysis Prepared by:Toni Symonds / J., E.D., & E. / (916) 319-2090