BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SCR 25|
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                                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.   











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          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) 









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          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.








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          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  








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          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.   








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          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


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