BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AJR 3|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AJR 3
Author: Alejo (D)
Amended: 8/4/16 in Assembly
Vote: 21
ASSEMBLY FLOOR: Read and adopted, 8/4/16
SUBJECT: Cuban embargo
SOURCE: Author
DIGEST: This resolution urges the Congress of the United States to
support President Obama's initiative to normalize diplomatic
relations with Cuba and to move forward with legislation to help
increase trade with Cuba.
ANALYSIS: This resolution makes the following legislative
findings:
1)The Obama administration announced new United States
Department of the Treasury and United States Department of
Commerce regulations allowing more exports of certain products
to Cuba.
2)The United States and Cuba recently signed an agreement to
restore commercial airline service between both countries,
which could potentially result in 110 daily flights to and
from Cuba. According to the United States Embassy in Havana,
authorized travel to Cuba by United States citizens increased
by over 50 percent since travel restrictions were eased in
December 2014.
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Page 2
3)The United States and Cuba are natural trading partners, and
California stands ready to be a major source for Cuba's
domestic consumption, which will result in significant growth
in the United States exports and the creation of more American
jobs.
4)Removing the embargo would provide small- and medium-sized
enterprises with access to a much needed market. Studies on
lifting the embargo show a possible economic spark of $1.1
billion, $365 million from sales of United States goods, and a
creation of up to 6,000 American jobs, predominantly in
agriculture and telecommunications.
5)Normalizing trade relations would enable California and the
Cuban government and its people to exchange dialogue, giving
them a better opportunity to influence one another regarding
human rights practices.
This resolution urges the Congress of the United States to
support President Obama's initiative to normalize diplomatic
relations with Cuba and to, with all deliberate speed, move
forward with legislation to help increase trade with Cuba.
Background
Federal Legislation: The U.S. Congress is currently considering
legislation that would advance the purposes of this resolution,
including, but not limited to, HR 3238 (Emmer
Republican-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-Democrats
and 11-Republicans), 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.
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Page 3
1)The Cuban Democracy Act of 1992 is amended to eliminate:
a) Presidential authority to impose sanctions against Cuban
trading partners;
b) Restrictions on transactions between U.S.-owned or
controlled firms and Cuba; and
c) Limitations on direct shipping between Cuban and U.S.
ports, and restrictions on remittances.
2)The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of
1996 is amended to eliminate:
a) The enforcement of an economic embargo of Cuban
provisions; and
b) The prohibition on indirect financing of Cuba.
3)The Trade Sanctions Reform and Export Enhancement Act of 2000
is amended to:
a) Remove Cuba from the list of state sponsors of terrorism
subject to agricultural and medical export restrictions;
b) Eliminate the prohibition on U.S. assistance, including
foreign assistance, export assistance, and any credit or
guarantees being made available for exports to Cuba;
c) Eliminate the prohibition against a U.S. person's
providing payment or financing terms for sales of
agricultural commodities or products to Cuba;
d) 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
e) Eliminate the prohibition on the U.S. entry of
merchandise 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 Cuba.
4)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.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified8/9/16)
American Federation of State, County and Municipal Employees
OPPOSITION: (Verified8/9/16)
None received
Prepared by: Jonas Austin / SFA / (916) 651-1520
8/10/16 15:34:56
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