BILL ANALYSIS �
AB 337
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CONCURRENCE IN SENATE AMENDMENTS
AB 337 (Allen)
As Amended August 14, 2014
Majority vote
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|ASSEMBLY: |76-1 |(January 1, |SENATE: |34-0 |(August 25, |
| | |2014) | | |2014) |
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Original Committee Reference: J., E.D. & E
SUMMARY : Adds specificity to the development and content of the
state international trade and investment strategy (ITI
Strategy), which is an existing report requirement of the
Governor's Office of Business and Economic Development (GO-Biz).
This bill requires the ITI Strategy to be based on current and
emerging market conditions and the needs of investors,
businesses, and workers. Specific new content requirements
include the addition of a framework, which can be used by GO-Biz
to evaluate the changing needs of business during the five-year
term of the ITI Strategy.
The Senate amendments expand the content of the ITI Strategy to
include a framework for evaluating future conditions that affect
the trade and investment needs of business.
EXISTING LAW :
1)Requires GO-Biz to provide the Legislature with an ITI
Strategy at least once every five years. The next ITI
Strategy is due in February 2019.
2)Requires the ITI Strategy to, at a minimum, include the
following:
a) Policy, goals, objectives and recommendations;
b) Measurable outcomes and timelines for meeting the ITI
Strategy goals, objectives, and actions;
c) Identification of key stakeholder partnerships that will
be used to implement the goals and objectives;
d) Identification of impediments for achieving the goals
AB 337
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and objectives;
e) Identification of options for funding recommended
actions; and
f) Identification of an international trade and investment
organizational structure.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The ITI Strategy is designed to focus and prioritize
state actions and investments around international trade,
foreign investment, and cross-border business activities.
California's Trade Economy: California's $2.2 trillion economy
naturally functions as an independent nation and is highly
dependent on industry sectors that participate within the larger
global economy. In fact, compared to other nations, California
has the 8th largest economy in the world, due to it being a
top-tier trade partner, a best-in-class investment location, a
high quality producer of goods and services, and the home and
key access point for a massive consumer-base.
In 2013, California exported $168 billion in products to over
220 foreign countries. While California has been significantly
impacted by the recession, exports continued to increase in
almost every quarter from 2010 through 2013. It is estimated
that one in five manufacturing jobs in California is related to
trade. Goods movement supports employment, business profit, and
state and local tax revenue. The logistics industry is
responsible for hiring 73,000 workers.
California businesses rely heavily on the state's ports and
their related transportation systems to move manufactured goods.
Firms rely on fast, flexible, and reliable shipping to link
national and global supply chains and bring products to the
retail market. Transportation breakdowns and congestion can
idle entire global production networks. Further, global
competition for moving goods is highly competitive and will
become increasingly so with the opening of the upgraded Panama
Canal. The Trans-Pacific Partnership and the Transatlantic
Trade and Investment Agreement) will also place greater pressure
on California infrastructure to perform.
AB 337
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Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0004881