BILL ANALYSIS Ó
AB 1137
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1137 (V. Manuel Perez) - As Amended: April 26, 2011
Policy Committee: JEDE Vote:6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the establishment of the California Export
Promotion and Gap Financing Program (Export Assistance Program)
and codifies the state's participation in the federal EB5
(Employment Based Immigration) visa program. Specifically, this
bill:
1)Authorizes the establishment of the Export Assistance Program,
within the Business, Transportation and Housing Agency (BTH),
for the purpose of applying for, receiving and implementing a
federally funded export assistance program. Limits
implementation of the program until federal moneys are
received and authorizes BTH to adopt regulations to implement
this measure.
2)Codifies the state's participation in the federal program for
investor visas, known as the EB5 program. Requires BTH to
serve as the lead state entity under specified provisions of
the federal Immigration and Nationality Act.
FISCAL EFFECT
The BTH agency estimates that it would cost $600,000 to
administer the program envisioned in this bill.
COMMENTS
1)Purpose : According to the author, increasing the number of
businesses and workers engaged in development and movement of
products and services for export can play an important role in
the state's overall economic recovery strategy. Last October,
as part of the federal Small Business Jobs Act, Congress
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passed and the president signed, the State Trade and Export
Promotion Grant Act (STEP), which authorized $90 million in
competitive grants to fund state trade promotion programs over
the next three years.
California is currently in the process of applying for a share
of the first $30 million in STEP funds. California needs a
framework to implement the program and overseeing these funds.
AB 1137 provides such a framework and helps California in
applying for the next round of funding."
2)State activities. Agreements on a new trade strategy program
were codified in SB 1513(Romero), Chapter 663, Statutes of
2006. This bill provided new authority for BTH to undertake
international trade and investment activities. It also
directs the development and implementation of a comprehensive
international trade and investment strategy (ITI Strategy.)
All international trade and foreign investment activities and
funding are required to be consistent with the ITI strategy.
3)Federal programs. In January 2010, the president announced a
national goal of doubling U.S. exports within five years,
setting a 2015 target for U.S. exports of $3.14 trillion. The
National Export Initiative (NEI) is the mechanism by which the
federal Administration is managing activities and funds
related to increasing U.S. exports.
Under federal law, 10,000 immigrant visas per year are
available to qualified individuals seeking permanent resident
status on the basis of their engagement in a new commercial
enterprise. This visa program is called the EB5 visa program.
Permanent resident status based on EB5 eligibility is
available to investors who have invested - or are actively in
the process of investing - at least $1,000,000 into a new
commercial enterprise that they have established.
4)Current session related legislation.
a) AB 1409 (Jobs Committee) - Goods Movement Update to the
State Economic Strategy . Requires that the next update of
the international trade and investment strategy include
policy goals, objectives and recommendations, as specified.
Pending in this committee.
b) AB 1410 (Jobs Committee) - Trade Omnibus Bill . Makes
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technical, non-substantive amendments to the codes relating
to international trade and foreign investment. Pending on
the Assembly Floor.
c) SB 460 (Price) - Trade Marketing and Promotion . The
bill requires the Secretary of BTH to convene a business
partnership on trade promotion. Pending in Senate
Appropriations.
6)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081