BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SCR 25|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: SCR 25
Author: Block (D), Allen (D), Hertzberg (D), Jackson (D), Leno
(D),
Stone (R), and Wolk (D), et al.
Introduced:3/5/15
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 4/6/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SUBJECT: Trade: Israel: memorandum of understanding
SOURCE: Author
DIGEST: This resolution states the Legislature's recognition
and support for the memorandum of understanding for strategic
partnerships for joint innovation, exchanges, and cooperation
between California and Israel which was signed
March 5, 2014.
ANALYSIS: This resolution states the following:
1) The Legislature recognizes the many ties that inexorably
bind the State of California to the nation of Israel.
2) Two-way trade between Israel and California totaled over
$4.2 billion in 2014 - one of the largest two-way
relationships between Israel and a state in the United
States.
SCR 25
Page 2
3) California and Israel share close ties and are global
leaders in the alternative energy, environmental technology
and other technology-based industry sectors.
4) California is home to the largest in-state innovation
network in the U.S., which offers
technology-commercialization opportunities for Israel.
5) March, 5, 2015, marks the one year anniversary of the
historic meeting at which the Governor of California and the
Prime Minister of Israel signed a memorandum of
understanding (MOU) for strategic partnerships for joint
innovation, exchanges, and cooperation between California
and Israel.
6) The MOU was the culmination of an effort started in the
California Legislature as Assembly Bill 1032 of the 2009-10
Regular Session, calling for the creation of the MOU geared
toward fostering the exchange of information and research.
States that the MOU will strengthen relationships with
Israel and help California and Israel grow in these areas.
7) The participants in this MOU seek to expand the current
level of cooperation between Israel and California in areas
including, but not limited to, alternative energy,
environmental technology, health, food and agriculture, and
other technology-based industry sectors, business
innovation, research, development, and academia.
8) The unfettered collaboration between Israeli and
California universities will benefit multiple disciplines
and enhances the academic experience of the faculty and
students of both countries.
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9) The MOU will also establish a formal relationship between
the two parties to foster economic cooperation and economic
development, facilitate joint industrial research and
development, and enhance business relationships and
educational opportunities between all Israeli universities
and all California universities to foster job creation and
incubate global solutions from joint California-Israel
innovation initiatives.
10) Collaboration with Israel will foster peace and
democracy in the Middle East.
11) To achieve these aims, the MOU envisions
undertaking the following actions: convening bilateral,
interagency working groups with international expertise to
coordinate initiatives; facilitating collaborations between
Israeli and Californian entrepreneurs and researchers
through the California innovation hub network; supporting
and encouraging further development of interpersonal
contacts and exchanges and promoting mutual cooperation,
understanding, and friendship by encouraging ad hoc task
forces, trade delegations, and professional exchanges
between Israel and California in key sectors; creating
public-private partnerships between Californian and Israeli
entities in the areas of economic development, social
entrepreneurship, and academic research; strengthening the
sister city program; and facilitating collaboration between
universities in California and Israel to foster research and
development.
This resolution states that the Legislature hereby supports the
MOU for establishing strategic partnerships between California
and Israel that support joint innovation in clean technologies,
water conservation, health, biotechnology, cybersecurity,
education, agricultural technology, research, and other
informational exchanges, and that also promote mutual
cooperation, understanding, and friendship by encouraging trade
delegations and collaboration on mutual projects and issues of
interest.
SCR 25
Page 4
Background
On March 5, 2014, Governor Jerry Brown and Israeli Prime
Minister Benjamin Netanyahu signed the Israel-California
Strategic Partnership for the purposes of establishing a formal
relationship between them to foster economic cooperation and
economic development, facilitate joint industrial research and
development, and enhance business relationships and educational
opportunities to foster job creation and incubate global
solutions from joint California-Israel innovation initiatives.
California would boost economic, cultural, and academic
cooperation between California and Israel in the areas of
cybersecurity, health, biotechnology, education, agricultural
technology, water conservation, and alternative energy. Since
the MOU was signed, there have been a number of collaborative
efforts initiated to meet the goals of the agreement.
Israel is currently the nation's 25th largest goods trading
partner with $36 billion in total (two ways) goods trade during
2013, including exports of $14 billion and goods imports
totaling $23 billion. The top export categories in 2013 were
precious stones (diamonds) ($5.8 billion), electrical machinery
($1.6 billion), machinery ($1.0 billion), aircraft ($823
million), and optic and medical instruments ($666 million).
U.S. exports of agricultural products to Israel totaled $627
million in 2013, including leading categories of tree nuts ($89
million), soybeans ($83 million), and wheat ($61 million). U.S.
exports of private commercial services (excluding military and
government) to Israel were $4.1 billion in 2012, 3.5% ($138
million) more than 2011. Other private services (business,
professional, and technical services), travel and other
transportation (port services) categories accounted for most of
U.S. exports.
Israel was the United States' 21st largest supplier of goods
imports in 2013. U.S. imports from Israel accounted for 1.0% of
overall U.S. imports in 2013. The five largest import
categories in 2013 were precious stones (diamonds) ($9.0
billion), pharmaceutical products ($5.4 billion), electrical
machinery ($1.4 billion), machinery ($1.4 billion), and optic
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Page 5
and medical instruments ($1.3 billion). U.S. imports of
agricultural products from Israel totaled $327 million in 2013,
including leading categories of snack foods including chocolate
($54 million) and planting seeds ($35 million).
Israel foreign direct investment in the U.S. was $9.8 billion in
2012.
Prior Related Legislation
AB 1166 (Blumenfield, 2013) would have established the
California and Israel Trade and Economic Development Act of 2013
to facilitate greater economic development and job creation
opportunities. The bill directed the Governor's Office of
Business and Economic Development to formalize an economic
relationship between California and Israel and to build a
framework to explore new research and development opportunities
to increase investments for renewable energy and increase clean
technology, promote development of green collar jobs, and expand
employment opportunities in the state. (The bill was never
heard in a policy committee.)
AB 1032 (Blumenfield, 2010) would have required the Governor to
establish a MOU to formalize the relationship between California
and the state of Israel for the purpose of fostering technology
and business development and education opportunities in solar
energy and environmental technology industries. (The bill was
held in the Assembly Committee on Appropriations.)
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified4/8/15)
AJC Global Jewish Advocacy, San Francisco Regional Office
American Jewish Committee, Los Angeles Regional Office
Anti-Defamation League
Bay Area Council
California Israel Chamber of Commerce
Consulates General of Israel in Los Angeles and San Francisco
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Page 6
Jewish Public Affairs Committee of California
Scott Weiner, San Francisco County Supervisor
OPPOSITION: (Verified4/8/15)
None received
ARGUMENTS IN SUPPORT: Supporters believe that this
resolution sends a powerful message about the state's support
for the MOU signed in 2014 which: will forge a strategic
partnership of mutual benefit; is beneficial given California
and Israel's global leadership in the alternative energy,
environmental and other technology-based industry sectors as
well as job creation, a key area of concern and focus for the
state and the nation; will assist both California and Israel to
fulfill their mutual goals of job creation and economic
prosperity and; fostering a formal relationship between these
two states sends the clear message that a shared future of
prosperity exists, particularly in the areas of alternative
energy, environmental technology, and other technology-based
sectors.
Prepared by:Sarah Mason / B. P. & E.D. / (916) 651-4104
4/13/15 10:12:33
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