BILL ANALYSIS                                                                                                                                                                                                    

          |SENATE RULES COMMITTEE            |                         AJR 3|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                    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  

          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.


                                                                      AJR 3  
                                                                    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  

          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.


          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  


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          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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