BILL ANALYSIS Ó
AB 1137
Page 1
ASSEMBLY THIRD READING
AB 1137 (V. Manuel Pérez)
As Amended April 26, 2011
Majority vote
ECONOMIC DEVELOPMENT 6-0 APPROPRIATIONS 12-5
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|Ayes:|V. Manuel Pérez, Grove, |Ayes:|Fuentes, Blumenfield, |
| |Beall, Block, Hueso, | |Bradford, Charles |
| |Morrell | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
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SUMMARY : Makes a number of changes to programs designed to
increase foreign trade and investments as a tool for expanding
local business opportunities and creating jobs. Specifically,
this bill :
1)Authorizes the establishment of the California Export
Promotion and Gap Financing Program (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.
Among other requirements, the bill:
a) Limits implementation of the program until federal
moneys are received;
b) Requires that the program have clear objectives,
reporting requirements, methods for ensuring program
resources are available statewide, and be implemented in a
collaborative fashion with other related business
assistance programs;
c) Requires that program reporting be done annually on the
BTH Web site and include, at a minimum, the number of
businesses assisted, the number of jobs created and
retained, an estimate of the economic impact of the
AB 1137
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assistance and other key program achievements; and,
d) Provides that if any federal requirements prohibit any
of the state statutory requirements of the Export
Assistance Program, BTH is to notify the relevant policy
and fiscal committees and is then authorized to waive the
state rules to the extent necessary to fulfill the federal
requirements.
2)Codifies the state's participation in the federal EB5 program
(foreign investment visa initiative) by establishing the
California Foreign Investment Program, which, among other
things:
a) Requires BTH to serve as the lead state entity under
specified provisions of the federal Immigration and
Nationality Act; and,
b) Requires BTH to set the terms and conditions for issuing
a state designation letter within the structure and scope
of those provisions of federal law.
3)Makes technical updates to the Foreign Free Trade Zone Act,
including renaming it the California Foreign Free Trade Zone
Act.
EXISTING LAW authorizes BTH to undertake international trade and
investment activities and, as a condition of that authority,
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.
FISCAL EFFECT : According the Assembly Appropriations Committee,
BTH estimates that it would cost $600,000 to administer the
program envisioned in this bill. Under the terms of the bill,
these moneys would come from federal sources.
COMMENTS : 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. In accomplishing
this goal, the federal government will be proposing new
programs, targeting existing trade related activities, and
increasing funding and technical assistance within current
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programs. This increase in related funds and activities could
result in significant new economic opportunities for California
businesses.
This bill proposes to proactively design a flexible state
program in order to maximize the ability of the state to access
federal funds. The bill precludes the establishment of the
program prior to federal moneys becoming available.
Under the American Recovery and Reinvestment Act, many of the
state-level applications had only a six-week turn around, which
resulted in funding proposals that were not necessarily
reflective of the state's highest priorities. Establishing a
framework for the trade program that ensures collaboration with
local businesses and communities could help California submit a
more competitive application that is also reflective of the
state's highest economic and business development priorities.
Background on California trade: International trade is a very
important component of California's $1.9 trillion economy. If
California were a country, it would be the 11th largest exporter
in the world. Exports from California accounted for over 11% of
total U.S. exports in goods, shipping to over 226 foreign
destinations in 2010.
California's land, sea, and air ports of entry serve as key
international commercial gateways for products entering the
country. California exported $143 billion in goods in 2010 (up
from $120 billion in 2009), ranking only second to Texas with
$163 billion in export goods. Computers and electronic products
were California's top exports in 2010, accounting for 30.1% of
all state exports, or $43 billion.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0001136