BILL ANALYSIS
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THIRD READING
Bill No: AB 1558
Author: Assembly Jobs, Econ. Dev., and the Economy
Committee
Amended: As introduced
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 9-0, 7/6/09
AYES: Negrete McLeod, Wyland, Aanestad, Corbett, Correa,
Florez, Romero, Walters, Yee
NO VOTE RECORDED: Oropeza
ASSEMBLY FLOOR : 77-0, 4/27/09 (Consent) - See last page
for vote
SUBJECT : International relations
SOURCE : Author
DIGEST : This bill 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.
ANALYSIS :
CONTINUED
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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 required to annually submit a report on
its activities to the Legislature.
3. 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:
A. 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repealed and its provisions moved to the newly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."
B. Chapter 8 (commencing with Section 8700) of
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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."
C. 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."
D. 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.
Background
International trade-related commerce represents
approximately one-quarter of California's $1.5 trillion
economy. California-made exports directly account for
about eight percent 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 percent to 28 percent
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
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2006, re-established statutory authority for the BT&H to
conduct international trade and foreign investment
activities. That bill 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.
Related Legislation .
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.
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 in 2008.
AB 402 (Dymally), Chapter 496, Statues of 2006 . 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.
AB 3021 (Nu?ez), Chapter 621, Statutes of 2006 . 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.
SB 1513 (Romero), Chapter 663, Statutes of 2006 . Provides
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hagman, Hall, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,
Nestande, Niello, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Price, Ruskin, Salas, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Harkey, Hayashi, Saldana
JJA:do 7/7/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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