BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SCR 25| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SCR 25 Author: Block (D), Allen (D), Hertzberg (D), Jackson (D), Leno (D), Stone (R), and Wolk (D), et al. Amended: 7/13/15 Vote: 21 SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/6/15 AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski SENATE FLOOR: 34-0, 4/13/15 AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, McGuire, Mendoza, Mitchell, Moorlach, Morrell, Nguyen, Nielsen, Pan, Roth, Stone, Vidak, Wieckowski, Wolk NO VOTE RECORDED: Gaines, Liu, Monning, Pavley, Runner ASSEMBLY FLOOR: Read and adopted, 7/13/15 SUBJECT: Trade: Israel: memorandum of understanding SOURCE: Author DIGEST: This resolution states the Legislatures recognition and support for the memorandum of understanding for strategic partnerships for joint innovation, exchanges, and cooperation (MOU) between California and Israel which was signed on March 5, 2014. SCR 25 Page 2 Assembly Amendments add co-authors and make additional statements about the importance of California's MOU with Israel. ANALYSIS: Existing federal law: 1)Gives the federal government the power to enter into treaties and trade agreements. Federal law requires Congress to approve international agreements. (United States (U.S.) Constitution, Article II) 2)Establishes, by executive order, the United States Trade Representative as an agency within the Executive Office of the President to be responsible for international trade negotiations. (Executive Order 12188) Existing state law: 1)Establishes the Governor's Office of Business and Economic Development (GO-Biz) within the Governor's Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (Government Code (GC) §§ 12096 - 12098.5) 2)Specifies that GO-Biz is the primary state agency authorized to attract foreign investments, cooperate in international public infrastructure projects, and support California businesses in accessing markets, and requires the Director of GO-Biz to develop an international trade and investment program attracting employment-producing direct foreign investment to the state and providing support for California businesses in accessing international markets and increasing exports. (GC § 13996.41) SCR 25 Page 3 3)Authorizes GO-Biz to establish international trade and investment offices outside of the U.S. according to certain requirements. (GC § 13996.42) This resolution: 1) States the importance of California's relationship with Israel and significance of the MOU. 2) States that the MOU has resulted in increased cooperation between California and Israel in areas of alternative energy, environmental technology, health, food and agriculture, trade and other technology-based industry sectors, business innovation, research, development, and academia. 3) States that since the MOU was signed in 2014, two additional agreements have been signed with the assistance of GO-Biz including agreements to add an economic component to the bilateral partnership and a second agreement between the California Institute of Regenerative Medicine and Israel's Ministry of Economy to facilitate matching grants for stem cell research and development. 4) States that collaboration with Israel will foster peace and democracy in the Middle East. 5) States that 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. SCR 25 Page 4 6) Resolves 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. 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. A new California iHub program was developed, iHub Worldwide Innovation Network, to facilitate the introduction of foreign companies, investment and partners, including those in Israel, to the state's iHubs. Cyber security discussions, including workshops and seminars on business expansion partnerships with Israeli experts and firms are in the works. Leading Israeli water experts visited California to learn more about water management in the state. Israel and the California Department of Food and Agriculture are in contact and GO-Biz works with agri-tech companies from both California and Israel to advance partnership and business opportunities. Alternative energy and clean technology efforts between California and Israel are being advanced through discussions at the California SCR 25 Page 5 Energy Commission and a delegation visit of Israeli companies, led by Israeli officials, to the Los Angeles Clean Tech Global Showcase. Arts and cultural exchanges are underway, including partnership between the California Arts Council and Israel. California officials have spearheaded introductions between Israel and the University of California Office of the President and California State University Chancellor's Office to further develop educational partnerships. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified7/14/15) American Jewish Committee of Los Angeles American Jewish Committee of San Francisco Bay Area Council California Israel Chamber of Commerce City of Los Angeles Consulate General of Israel Jewish Public Affairs Committee of California San Francisco Supervisor Scott Wiener The Anti-Defamation League University of California OPPOSITION: (Verified7/14/15) None received ARGUMENTS IN SUPPORT: Supporters state 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 and note that there are multiple reasons why the MOU makes sense and is beneficial, including 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. SCR 25 Page 6 Supporters also believe this resolution assists both California and Israel to fulfill their mutual goals of job creation and economic prosperity. Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104 7/14/15 19:26:04 **** END ****