BILL ANALYSIS
AB 2443
Page 1
ASSEMBLY THIRD READING
AB 2443 (V. Manuel Perez)
As Amended May 10, 2010
Majority vote
ECONOMIC DEVELOPMENT 4-2APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|V. Manuel Perez, Beall, |Ayes:|Fuentes, Ammiano, |
| |Block, Salas | |Bradford, |
| | | |Charles Calderon, Coto, |
| | | |Davis, |
| | | |De Leon, Hall, Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Logue, Bill Berryhill |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
-----------------------------------------------------------------
SUMMARY : Requires the state point of contact (SPOC) to provide
the Legislature with copies of any official position taken or
comments made to the United States Trade Representative (USTR)
relating to a pending trade agreement.
EXISTING LAW :
1)States that the Governor is the primary state officer
representing California's interest in international affairs,
to the extent that representation is not in conflict with
federal law or the California Constitution. Further, this
recognition is declaratory of existing law and does not in and
of its self confer any new authority.
2)Specifies that the SPOC acts, in compliance with federal
practice, as the liaison between the state and the Office of
the USTR on trade-related matters. State law recognizes that
the SPOC receives updates from the federal government on trade
policies and is often provided the opportunity to review and
comment on ongoing trade negotiations.
3)Requires the SPOC, in addition to any other duties assigned by
the Governor, to do both of the following:
AB 2443
Page 2
a) Promptly disseminate information from the USTR to the
appropriate state agencies, departments, and legislative
committees; and,
b) Work with the Legislature and appropriate state agencies
to review the effects of any proposed or enacted trade
agreement provisions on California environment, businesses,
workers, and general lawmaking authority and to communicate
those findings to the USTR.
FISCAL EFFECT : The Assembly Appropriations Committee analysis
states that there are no significant costs associated with this
bill.
COMMENTS
1)In California, the SPOC serves as the official liaison between
the USTR, the Administration, and the Legislature. As the
liaison, the SPOC is required to share key correspondence from
the USTR to the relevant state agencies, departments, and
legislative policy committees and to work with the
Administration and Legislature to review and comment to the
USTR on the effects of proposed and enacted trade agreements.
The SPOC, however, is not currently required to share a copy
of the Administration's comments to the USTR. This includes
when the Governor takes a formal position and/or officially
comments on a pending trade agreement. Given the importance
of international trade and foreign investment in the
California economy, the author believes, that the free
exchange of information between the state's executive and
legislative branches is imperative.
2)International trade is a very important component of
California's $1.8 trillion economy. In 2009, $120 billion in
goods were exported from California to over 200 countries.
Computers and electronic products were California's top
exports, accounting for 29.3% of all state exports, or $35
billion. If California were a country, it would be the 11th
largest exporter in the world.
3)The United States (U.S.) Constitution grants the federal
AB 2443
Page 3
government the power to enter into treaties and trade
agreements and provides that these treaties and agreements are
laws of the U.S. and, as such, are supreme over the laws of
states.
By Congressional directive, the U.S. Trade Representative
(USTR) is required to secure advice from states on trade
negotiations through a number of means including the
Intergovernmental Policy Advisory Committee (IGPAC). IGPAC is
one of six policy advisory committees established in the Trade
Act of 1974. IGPAC is comprised of state and local officials,
including members of state legislatures, state trade
directors, and related national associations.
The USTR also maintains a SPOC system in which the governor of
each state designates a single point of contact within the
state that is responsible for transmitting information to the
USTR and disseminating information from the USTR to state
officials.
In California, the SPOC serves as the official liaison between
the USTR, the Administration, and the Legislature. As the
liaison, the SPOC is required to "promptly disseminate
correspondence or information" from the USTR to the relevant
state agencies, departments, and legislative policy committees
in the Senate and the Assembly. The SPOC is also required to
work with the Administration and the relevant state committees
to review and comment to the USTR on the effects of proposed
and enacted trade agreements.
4)The policy committee analysis includes an expended discussion
on the bill including additional information on California's
trade position within the global economy.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0004192