BILL ANALYSIS
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|Hearing Date:July 6, 2009 |Bill No:AB |
| |1558 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Gloria Negrete McLeod, Chair
Bill No: AB 1558Author:Committee on Jobs, Economic Development,
and the Economy
As Amended: March 11, 2009Fiscal: No
SUBJECT: International relations.
SUMMARY: Recodifies and reorganizes the sections of the Government
Code which establish the Office of California-Mexico Affairs and the
California-Mexico Border Relations Council. By shifting the placement
in the Code of the provision governing the Office of California-Mexico
Affairs and California-Mexico Border Relations Council the bill
creates one comprehensive code for the state's international trade
activities and programs.
Existing law:
1)Authorizes any public corporation, as defined, and specified private
corporations to apply for the privilege of establishing, operating,
and maintaining a foreign trade zone in accordance with federal law,
and provides that any public or private corporation whose
application is granted pursuant to federal law is authorized to
establish, operate, and maintain a foreign trade zone, subject to
specified conditions.
2)Establishes the Office of California-Mexico Affairs to serve as a
clearinghouse for information and assistance to other state agencies
involved with Mexico, and to develop favorable relations with
Mexico.
3)Establishes the California-Mexico Border Relations Council to consist of
specified state officials. The duties of the council includes,
among other things, coordinating activities of state agencies that
are related to cross-border programs, initiatives, projects, and
partnerships that exist within state government. The Council is
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required to annually submit a report on its activities to the
Legislature.
4)Establishes the Business, Transportation and Housing Agency (BT&H) as the
primary state agency responsible for international trade and
investment activities, other than those related to the export of
agriculture, fish and forest products.
This bill:
1)Recodifies and reorganizes the following provisions:
1) Chapter 4 (commencing with Section 6300) of Division 7 of
Title 1 of the Government Code is repealed and its provisions
moved to the newly created Chapter 2 (commencing with Section
99600) of Title 20 of the Government Code. Chapter 2 now
includes those provisions related to "Foreign Trade Zones."
1) Chapter 8 (commencing with Section 8700) of Division 1 of
Title 2 of the Government Code is repealed and its provisions
moved to the newly created Chapter 3 (commencing with Section
99700) of Title 20 of the Government Code. Chapter 3 now
includes those provisions related to the "Office of
California-Mexico Affairs."
1) Chapter 8.1 (commencing with Section 8710) of Division 1 of
Title 2 of the Government Code is repealed and its provisions
moved to the newly created Chapter 4 (commencing with Section
99800) of Title 20 of the Government Code. Chapter 4 now
includes those provisions related to the "California-Mexico
Border Relations Council."
1) The heading of Chapter 1 (commencing with Section 99500) is
added to Title 20 of the Government Code. Chapter 1 now includes
"General Provisions" governing the state's role and interests in
international relations and foreign trade.
FISCAL EFFECT: None. This bill has not been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1.Purpose. This bill seeks to reorganize the Government Code by
shifting foreign trade related code sections under a new, more
specific title pertaining to foreign relations.
AB 1558
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2.Background. International trade-related commerce represents
approximately one-quarter of California's $1.5 trillion economy.
California-made exports directly account for about 8% of gross state
product. If California were a country, it would be the 11th largest
exporter in the world.
The state leads the nation in export-related jobs. According to U.S.
Department of Commerce estimates, for every one million dollars of
increased trade activity, 11 new jobs are supported. Workers in
trade related industries earn, on average, 13% to 28% higher wages
than the national average. Besides the production of exported
products, foreign trade results in numerous jobs that are related to
port-related activity, wholesale trade, warehousing, and
transportation.
During the 2005-06 Legislative Session, significant changes were made
in the area of international trade and development. SB 1513
(Romero, Chapter 663, Statutes of 2006) re-established statutory
authority for the Business, Transportation, and Housing Agency to
conduct international trade and foreign investment activities. That
measure also established a new statutory title relating to foreign
relations.
During deliberations on the re-establishment of trade authority for
BT&H, concerns were raised that the state lacked a comprehensive or
even generally understandable statutory scheme related to trade and
foreign relations. This bill furthers the work that was begun in
SB 1513 by making related technical changes to the Government Code.
3.Related Legislation.
3. AB 89 (Garcia) : This bill would have required BT&H to prepare
a study by January 1, 2010, regarding infrastructure development
along the California/Mexico border, including an assessment of
whether alternative financing mechanisms may be necessary to meet
the development needs of the bi-national region. The
international trade language was removed after the bill left the
Assembly and was vetoed by the Governor in 2008.
3. AB 1722 (Committee on Jobs, Economic Development, and the
Economy) : This bill would have required BTH to provide the
Legislature with a copy of the international trade and investment
policy, which is a result of its work on the required
international trade study and strategy. Vetoed by the Governor
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in 2008.
3. AB 402 (Dymally) : This bill requires the Office of
California-Mexico Affairs to establish a migrant advisory
committee to focus upon issues confronted by people migrating
from Mexico to California. The international trade language was
removed after the bill left the Assembly. This bill was signed
by the Governor - Chapter 496, Statues of 2006.
3. AB 3021 (Nu?ez ): This bill establishes the six-member
California-Mexico Border Relations Council (Border Council)
comprised of all Agency Secretaries and the Director of the
Office of Emergency Services for the purpose of coordinating
activities of state agencies. The Border Council is required to
report to the Legislature on its activities annually. This bill
was signed by the Governor - Chapter 621, Statutes of 2006.
3. SB 1513 (Romero) : Provides new authority for BTH to undertake
international trade and investment activities, and as a condition
of that new authority, directs the development of a comprehensive
international trade and investment policy for California. This
bill reflects extended bi-partisan discussions between the Senate
and the Assembly. Based on these agreements, AB 2601 was dropped
to allow a single consensus bill on international trade which
provides an organizational structure for trade to be sent to the
Governor. This bill was signed by the Governor - Chapter 663,
Statutes of 2006.
SUPPORT AND OPPOSITION:
Support: None on file as of July 1, 2009.
Opposition: None on file as of July 1, 2009.
Consultant:Yuliya Zeynalova