BILL ANALYSIS �
AB 1410
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Date of Hearing: April 12, 2011
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
V. Manuel P�rez, Chair
AB 1410 (Committee on Jobs, Economic Development, and the
Economy) - As Introduced: March 10, 2011
SUBJECT : International Relations Omnibus
SUMMARY : Makes technical, non-substantive amendments to the
codes relating to international trade and foreign investment.
Specifically, this bill reorganizes the statutory placement of
the California-Mexico Affairs Office and the California-Mexico
Border Relations Council from a general title within state
government to a more specific title on foreign relations within
the Government Code. No changes are made to the content of
sections.
EXISTING LAW :
1)Establishes the Office of California-Mexico Affairs for the
purpose of furthering and developing favorable economic,
educational, and cultural relations with bordering Mexican
states and United States border states.
2)Places within the Office, the operations of the California
Office of the Southwest Border Regional Conference
(Conference). The members of the Conference are the Governors
of the four American border states: California, Arizona, New
Mexico, and Texas.
3)Establishes the California-Mexico Border Relations Council,
consisting of the California state agency Secretaries of the
Resources Agency, Environmental Protection, Health and human
Services, Business Transportation and Housing, Food and
Agriculture and the Director of Emergency Services.
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of the bill : This bill reorganizes the Government
Code by shifting the placement of the Office of
California-Mexico Affairs from a general title relating to
state government to a more specific title on foreign
AB 1410
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relations, for the purpose of having one comprehensive code
for the state's international trade activities and programs.
There are no additions or modifications being made to the code
sections. The bill is technical in nature.
2)Need for a comprehensive code section on international trade :
International trade-related commerce represents approximately
one-quarter of California's $1.9 trillion economy.
California-made exports account for nearly 7% of gross state
product. Exports from California accounted for 11% of total
U.S. exports in 2009.
In 2009, California's exports totaled $120 billion, this makes
the state the second largest exporter and the leader in 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% to 28% higher wages than the
national average. Besides the production of exported
products, foreign trade results in numerous port-related jobs,
such as wholesale trade, warehousing, and transportation.
During the 2005-06 Legislative Session, significant changes
were made in the area of international trade and development
with the enactment of SB 1513 (Romero), Chapter 663, Statutes
of 2006, which re-established statutory authority for the
Business, Transportation, and Housing (BTH) Agency to conduct
international trade and foreign investment activities. To
address these concerns a new statutory title was added for the
state's foreign relations activities.
During deliberations on the re-establishment of trade
authority for BTH, concerns were raised by international
business groups that the state lacked a comprehensive or even
generally understandable statutory scheme related to trade and
foreign relations.
AB 1410 further reorganizes the Government Code by
consolidating two additional foreign relations programs under
the title.
3)California and Mexico relations : The United States and
Mexican economies have become increasingly integrated,
particularly since the 1994 North American Free Trade
Agreement. This integration has brought California and Mexico
AB 1410
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both opportunities and challenges, most notably in the areas
of economic development, labor relations, health care, and
environmental protection. Beginning in 1999, Mexico became
California's number one trade partner. In 2009, California
posted exports to Mexico of $17.5 billion, which accounted for
15% of the nation's exports.
According to a 2004 Public Policy Institute study, much of the
California-Mexico trade is two-way within the same commodity
class, suggesting extensive production sharing. Components
made in California are assembled or further processed in
Mexico, and shipped back to California. Top commodities for
this type of trade include: machinery, vehicles, instruments,
and electronics and electronic equipment.
4)Related legislation : Below is a list of related legislation
from previous legislative sessions:
a) AB 1719 (JEDE) International Trade Omnibus : This bill
would have made technical and non-substantive changes to
codes relating to the state's international trade
activities. Status: JEDE-related content removed. The
bill was held in the Assembly Committee on Rules in 2008.
b) SB 772 (Ducheny) Border Region: Waste and Used Tires :
This bill requires the California Integrated Waste
Management Board to include in the waste tire recycling
program five-year plan information pertaining to border
region activities. Status: The bill was signed by the
Governor, Chapter 214, Statutes of 2005.
c) SB 1513 (Romero) Final Compromise - California
International Trade and Investment Act : This bill
re-establishes statutory authority for the Business,
Transportation, and Housing (BTH) Agency to conduct
international trade and foreign investment activities.
Status: The bill was signed by the Governor, Chapter 663,
Statutes of 2006.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 1410
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Assembly Committee on Jobs, Economic Development and the Economy
(sponsor)
Opposition
None received
Analysis Prepared by : Mercedes Flores / J., E.D. & E. / (916)
319-2090