BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2443|
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THIRD READING
Bill No: AB 2443
Author: V. Manuel Perez (D)
Amended: 06/21/10 in Senate
Vote: 21
SEN. BUS., PROF. & ECON. DEV. COMMITTEE : 6-1, 6/28/10
AYES: Negrete McLeod, Calderon, Corbett, Correa, Florez,
Yee
NOES: Aanestad
NO VOTE RECORDED: Wyland, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 47-25, 5/17/10 - See last page for vote
SUBJECT : State government: international relations
SOURCE : Author
DIGEST : This bill requires the state point of contact to
provide specified Legislative committees with copies of any
official position taken or comments, that any entity within
the executive branch of state government provided to the
U.S. Trade Representative relating to a pending trade
agreement, and authorizes the establishment of Sister State
relationships for the purpose of promoting economic growth
and trade and investment opportunities.
ANALYSIS :
CONTINUED
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Existing Law
1.The United States Constitution gives the federal
government the power to enter into trade agreements.
Federal law requires Congress to approve international
agreements.
2.Specifies that the Governor is the primary state officer
representing California's interest in international
affairs.
3.Specifies the Business, Transportation and Housing Agency
(BT&H) as the primary state agency authorized to attract
foreign investments, cooperate in international public
infrastructure projects, and support California
businesses, not otherwise assisted by the Department of
Food and Agriculture (DFA), in assessing markets, and
requires the Secretary of BT&H to develop an
international trade and investment policy.
4.Specifies that the state point of contact, within the
executive branch, acts, in compliance with federal
practice, as the liaison between the state and the Office
of the U.S. Trade Representative (USTR) on trade-related
matters.
5.Clarifies that the state point of contact is often
provided with the opportunity to review and comment on
ongoing trade negotiations and requires the state point
of contact, in addition to other duties assigned by the
Governor, to do all of the following:
A. Promptly disseminate information from the USTR to
the appropriate state agencies, departments, and
legislative committees.
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.
C. Serve as the liaison to the Legislature on matters
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of trade policy oversight.
6.Requires the Office of Planning and Research (OPR) to
maintain and update, a full and comprehensive list of all
state agreements with foreign governments, updated within
30 days of the efforts of each new agreement.
This bill:
1.Requires the state point of contract to provide any
official position or comments that any entity within the
executive branch of state government provided to the
USTR, within five days, to the legislative committees
assigned responsibility for international trade issues.
2.Enacts the Sister State Relationship Act of 2010 (Act).
3.Defines Sister State as a foreign nation or particular
jurisdiction within a foreign nation.
4.Defines Sister State relationship as one characterized by
a mutual interest in collaboration and the sharing of
information to further educational, economic and cultural
exchanges between California and a Sister State.
Clarifies that a Sister State relationship does not
create any legal relationship. Clarifies the purpose of
a Sister State relationship may include, but is not
limited to:
A. Promoting the economic growth and well-being of
small, medium and large companies in both states by
increasing their potential for trade and investment.
B. Providing a forum for sustained goodwill and
cooperation between the elected leaders of the
states.
C. Promoting bilateral ties that lead to a more
indelible and lasting relationship between the
citizens of the states.
5.Authorizes a Sister State to be initiated by the
enactment of a concurrent resolution by either house of
the Legislature or an Executive Order issued by the
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Governor, expressing a desire to enter into a Sister
State relationship for the purpose of encouraging and
facilitating mutually beneficial educational, economic
and cultural exchanges.
6.Sets forth a policy to certify and officially recognize
Sister State relationships that:
A. Demonstrate a mutual interest by the State of
California and the Sister State.
B. Designate a contact person in each state
responsible for developing and implementing sister
state activities.
C. Specify in writing the goals and objectives sought
to be accomplished during the term of the Sister
State relationship.
D. Establish a term for the initial Sister State
relationship not to exceed four years.
E. Ensure that the contact person will prepare and
submit a report for the OPR, no later than six months
after the term of a Sister State relationship,
summarizing all known activities conducted pursuant
to the sister state relationship.
F. Show that the Sister State is not on the United
States Department of State (State Department) list of
countries that condone or engage in inhumane
treatment of individuals or is otherwise prohibited
from entering into such a relationship under federal
law.
7.Maintains that a Sister State relationship is not
officially recognized or implemented until it has been
certified by OPR.
8.Requires OPR to maintain a list of all certified Sister
State relationships, updated within 30 days of the
expiration of the term of each existing Sister State
relationship or certification of a new relationship.
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9.Grants OPR authority to decertify a previously certified
Sister State relationship if the Sister State
subsequently appears on the State Department list.
Comments
Office of the U.S. Trade Representative (USTR) . Created in
1962 by Executive Order as an agency within the Executive
Office of the President, the USTR negotiates directly with
foreign governments on internal trade agreements. The USTR
consults states on provisions of a trade agreement through:
direct consultation with a state Governor; a state SPOC and
Intergovernmental Policy Advisory Committee (IGPAC).
Currently, when a trade agreement is under negotiation, the
USTR sends all correspondence and requests to Governors.
If a Governor agrees to bind the state or state agency to
the provisions or a procurement agreement, the USTR
includes the state or state agency as a bound party in the
appendix to the specific trade agreement. Past California
governors have bound the state to the terms of specific
government procurement provisions via the USTR directly.
Recent Experiences with Binding Agreements . On May 6,
2004, Governor Schwarzenegger agreed to bind the state to
terms of the U.S. - Australia Free Trade Agreement. In
response, 21 legislators sent a letter on May 28, 2004
expressing their concern that the state be bound to the
procurement chapter of that agreement and requesting the
Governor to not commit to procurement chapters of upcoming
agreements, noting that "international procurement
agreements could jeopardize important California
procurement laws promoting economic development,
environmental protection and human rights."
In January 2005, the USTR sent letters to state Governors
detailing trade agreement negotiations with several Central
American countries. In November of that year, legislators
sent the Governor a letter requesting that he not
voluntarily agree to be bound to a trade pact that could
arguably preempt California law; ask that a bipartisan and
bicameral group of California Legislators be appointed to
IGPAC; commit to weighing in on trade agreements in a
bipartisan fashion before commitments are made.
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Sister State Relationships . According to information
provided by the California State Senate Office of
International Relations, a Sister State relationship is a
formal declaration of friendship between two regions,
states, or nations. These agreements are seen as a symbol
of mutual goodwill and serve as an effort to encourage and
facilitate mutually beneficial social, economic,
educational, and cultural exchange. Under current law,
Sister State agreements are brought to the Senate or
Assembly floor by a Member in the form of a resolution and
must be passed by a simple majority. Once the resolution
is approved, a Sister State relationship is established but
this process does not provide the formality usually
associated with international agreements, particularly
since there is no requirement for a request to be submitted
to the Sister State or any mechanism to determine that
state's role in the relationship. Additionally, there is
not a state entity that officially monitors and tracks
these relationships or the outcomes that come from Sister
State relationships. Despite the presence of Sister State
relationships in many states throughout the U.S., there is
no one national framework or association for these
relationships. Sister City relationships, on the other
hand, do have an official organization. Sister Cities
International (SCI) links jurisdictions from the U.S. to
communities across the globe and recognizes, registers, and
coordinates Sister City relationships. The U.S. Sister
City program originated in 1956, when President Dwight D.
Eisenhower proposed a people-to-people, citizen diplomacy
initiative. According to information from SCI, there are
currently more than 2,000 cities, states and counties that
are partnered in 136 countries around the world. These
relationships have historically been key to local community
development, but were also important in setting the stage
for international diplomacy.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ARGUMENTS IN SUPPORT : According to the author's office,
"In California the SPOC serves, by statute, 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
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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 comments on a pending trade
agreement. Given the importance of international trade and
foreign investment in the California economy, the free
exchange of information between the state's executive and
legislative branches is imperative."
The author's office also adds that establishing Sister
State relationships with a refined purpose of promoting the
economic growth and well-being of small, medium and large
companies can increase their potential for trade and
investment but also promote a more "indelible and lasting
relationship between the citizens of California and the
citizens of a Sister State". The author's office believes
that establishing a process for the creation of Sister
State relationships promotes accountability and
transparency in the state's international relations.
Additionally, Sister State relationships can have a
significant positive impact on rural economies in terms of
broad based promotion and marketing of those communities.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Beall, Block, Blumenfield,
Bradford, Brownley, Buchanan, Carter, Chesbro, Coto,
Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong,
Fuentes, Galgiani, Hall, Hayashi, Hernandez, Hill, Huber,
Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza,
Monning, Nava, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Skinner, Solorio, Swanson, Torlakson,
Torres, Torrico, Tran, John A. Perez
NOES: Anderson, Bill Berryhill, Tom Berryhill, Blakeslee,
Conway, Cook, DeVore, Emmerson, Fletcher, Fuller, Gaines,
Garrick, Gilmore, Hagman, Harkey, Jeffries, Knight,
Logue, Miller, Nestande, Niello, Nielsen, Smyth, Audra
Strickland, Villines
NO VOTE RECORDED: Bass, Caballero, Charles Calderon,
Furutani, Norby, Silva, Yamada, Vacancy
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JJA:cm 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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