BILL ANALYSIS �
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|Hearing Date:June 23, 2014 |Bill No:AB |
| |690 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: AB 690Author:Campos
As Amended:January 23, 2014 Fiscal: No
SUBJECT: State government: international relations.
SUMMARY: Repeals and recasts provisions related to the Office of
California-Mexico Affairs and California-Mexico Border Relations
Council.
Existing law:
1) Authorizes public (the State and municipalities) corporations and
private corporations to apply to operate and operate a
foreign-trade zone in accordance with the terms of the act of
Congress (which provided for the establishment, operation and
maintenance of foreign-trade zones in ports of entry in the U.S. to
expedite and encourage foreign commerce). (Government Code (GC) ��
6301-6304)
2) Establishes the California Foreign Investment Program, under which
the Governor's Office of Business and Economic Development (GO-Biz)
serves as the lead state entity for overseeing the state's
participating with the United States Citizenship and Immigration
Services' EB-5 Investment Program; a visa category available to
immigrants seeking to enter the U.S. in order to invest in a
business or company that will benefit the economy.
Permanent-resident status through an EB-5 visa is available to
foreign investors who have invested - or are actively in the
process of investing - at least $1million into a new commercial
enterprise, which can entail: the creation of an original business;
the purchase of an existing business and restructuring or
reorganizing the business to the extent that a new commercial
enterprise results; or a significant expansion of an existing
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business. (GC � 6315.1)
3) Establishes the Office of California-Mexico Affairs (Office) to
serve as a clearinghouse for information and assistance to other
state agencies involved with Mexico and develop favorable relations
with the State of Baja California, the State of Baja California
Sur, other Mexican states bordering on the United States, and the
remaining states and territories of Mexico. Requires the office to
cooperate with similar organizations and agencies situated within
California, the U.S., or Mexico, to further economic development,
improve working conditions and living standards, and foster the
protection and improvement of the environment in Mexico and
California. (GC � 8700 et. seq.)
4) Establishes the California-Mexico Border Relations Council
(Council) comprised of the Secretary of the Natural Resources
Agency, the Secretary for Environmental Protection, the Secretary
of Health and Human Services, the Secretary of Transportation, the
Secretary of Food and Agriculture, and the Director of Emergency
Services, with the Secretary for Environmental Protection serving
as Chair. Requires the Council to coordinate activities of state
agencies that are related to cross-border programs, initiatives,
projects, and partnerships that exist within state government, to
improve the effectiveness of state and local efforts that are of
concern between California and Mexico. Requires the Council to
establish policies to coordinate the collection and sharing of data
related to cross-border issues between and among agencies and make
recommendations to the Legislature.
(GC � 8710 et. seq.)
5) Establishes GO-Biz within the Governor's Office for the purpose of
serving as the lead state entity for economic strategy and
marketing of California on issues relating to business development,
private sector investment and economic growth. GO-Biz also serves
as the administrative oversight for the California Business
Investment Service and the Office of the Small Business Advocate.
(GC �� 12096 - 12098.8)
6) Specifies that GO-Biz is the primary state agency authorized to
attract foreign investments, cooperate in international public
infrastructure projects, and support California businesses in
accessing markets, and requires the Director of GO-Biz to develop
an international trade and investment program (Program) attracting
employment-producing direct foreign investment to the state and
provides support for California businesses in accessing
international markets and increasing exports. (GC � 13996.41)
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7) Authorizes GO-Biz to establish international trade and investment
(ITI) offices outside of the U.S. according to certain
requirements. (GC � 13996.42)
8) Requires GO-Biz to prepare an international trade and investment
strategy and provide a report to the Legislature on or before
February 1, 2014, updated once every five years that includes: (GC
� 13996.55)
a) Policy goals, objectives and recommendations necessary to
implement a comprehensive international trade and investment
program.
b) Measurable outcomes and timelines for the goals, objectives
and actions for the program.
c) Impediments to achieving goals and objectives.
d) Key stakeholder partnerships that will be used to implement
the strategy.
e) Options for funding.
f) An organizational structure for state administration of
international trade and investment policies, programs and
services.
9)Requires the Director of GO-Biz to prepare the following: (GC �
13996.65)
a) A budget for the Program and a separately stated budget for
each ITI office, with specified information.
b) A strategy and business plan for the Program, with specified
information, that is developed with input from California
businesses that shall include, but not be limited to, measurable
goals, objectives, and outcomes and timelines necessary to
attract employment-producing direct foreign investment to the
state and increase California exports.
c) A written review of the implementation of the prior year's
strategy and business plan for the Program that addresses the
performance of the program and each ITI Office.
1)Provides that the Controller shall not allocate any state funds to
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GO-Biz for international trade and investment activities unless the
strategy for international trade and investment has been submitted
to the Legislature by May 1, 2014. (GC � 13996.75)
2)Establishes processes and accountability measures for GO-Biz to
accept private monies to fund, establish and operate international
trade offices. (GC � 13997)
3)Provides for the following related to the role of stage agencies
with respect to international relations: (GC � 99500)
a) The Governor is the primary state officer representing
California's interest in international affairs, to the extent
that representation is not in conflict with federal law or the
California Constitution.
b) The Lieutenant Governor is the Chair of the California
Commission for Economic Development, to improve trade
opportunities for California. The Legislature finds that the
commission has developed international partnerships that provide
venues for foreign companies to do business in the state and for
California-based companies to access foreign markets.
c) The Attorney General is the chief law officer of California
and as such assists the federal government in defending against
international challenges to California laws.
d) The Secretary of State oversees the International Business
Relations Program, which aims to develop stronger connections
between the international business community and the state by
assisting foreign business entities with the various filing
processes and procedures in California.
e) The Department of Food and Agriculture is the primary state
agency for the promotion of California agriculture, fish, and
forest exports.
f) The Natural Resources Agency and the California Environmental
Protection Agency are the primary state agencies for the
promotion of international exchange of environmental protection
technologies, alternative energy technologies, and the promotion
of the transfer of environmental technology to and from the
state.
g) GO-Biz is the primary state agency responsible for
international trade and investment activities in areas other than
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those covered by the Department of Food and Agriculture.
13)Establishes a state point of contact (SPOC), within the executive
branch, to act as the liaison between the state and the Office of
the U.S. Trade Representative (USTR) on trade-related matters.
Provides that the SPOC is often provided the opportunity to review
and comment on ongoing trade negotiations and must promptly
disseminate correspondence or information from the USTR to the
appropriate state agencies and departments and legislative
committees and work with the appropriate state agencies and
departments, and the Legislature, to review the effects on the
California environment, and California businesses, workers, and
general lawmaking authority, of any proposed or enacted trade
agreement provisions and communicate those findings to the USTR.
(GC � 99501)
14)Requires the Office of Planning and Research (OPR) to maintain and
update a full and comprehensive list of all state agreements made
with foreign governments, updated within
30 days of the effective date of each new agreement.
This bill:
1) Repeals and recasts provisions related to the California-Mexico
Border Relations Council and Office of California-Mexico Affairs.
2) Strikes current Legislative intent language for the creation of the
Office, about the need for state agencies to address important
United States-Mexico issues, and replaces it with language related
to: (1) trade with Mexico and California's potential to capitalize
on Mexico's growing economy, impacts of border crossing delays
between Mexico and the United States along the Imperial County-Baja
California border, (2) recognition that faster foreign direct
investment is occurring elsewhere, (3) California's lack of a
formal mechanism devoted to maximizing trade, addressing
challenges, and coordinating cross-border programs for trade
development between the two countries, and (4) establishing an
official trade relationship with Mexico that will help ensure that
the state can improve its global competitiveness and protect
California industry, proactively support the expansion and location
of businesses in California, provide international business
assistance to California businesses, and support their entry and
successful participation in the growing Mexican marketplace.
3) Provides that the Governor, or his or her designee, shall serve as
the California member of any board, council, commission, or other
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binational advisory or coordinating body convened under the
auspices of the Office.
4) Adds the Director of GO-Biz to the Council and establishes the
Director of GO-Biz as the Chair of the Council.
FISCAL EFFECT: This bill is keyed "non-fiscal" by Legislative
Counsel.
COMMENTS:
1. Purpose. The Author is the Sponsor of this bill. According to the
Author, "the state's two existing programs on California-Mexico
relations are basically shells. As a result, existing law on
California's trade programs is confusing and does not give
prominence to California-Mexico trade. Business groups have noted
that the state's laws on foreign relations and trade are difficult
to locate and understand because there isn't one comprehensive code
section for all trade programs." This bill seeks to address that
problem by updating California law to create one comprehensive
authorizing statute for the state's international trade activities,
what the Author calls "a technical fix that simply moves the
authorizing statutes for the Office of California-Mexico Affairs
and the California-Mexico Border Relations Council to be within the
other statutes relating to foreign relations." The Author also
adds that this bill aligns the California-Mexico trade programs
with other trade programs within GO-Biz by making the Director of
GO-Biz the chair of the California-Mexico Border Relations Council.
2. Background.
a) Office of California-Mexico Affairs. The Office was initially
created in 1982 to oversee the activities of the former
Commission of the Californias (Commission) and California Office
of the Southwest Border Regional Conference (Conference). The
general charge of the Commission, prior to elimination due to the
elimination of the Technology, Trade and Commerce Agency (TTCA)
in 2004, and the Conference, was to develop favorable economic,
educational, and cultural relations with Baja California, Baja
California Sur and territories with the Republic of Mexico and
coordinate with other American border states. The Office was
charged with serving as a clearinghouse for information and
assistance to other state agencies involved with Mexico.
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b) California Border Relations Council. Created following the
demise of TTCA and concern about the lack of a state government
structure to provide effective coordination of various state
agency efforts, as well as a thoughtful and collaborative
assessment of current and future program development that will
serve the needs of both California and Mexico in the 21st
century, the Council currently operates under the California
Environmental Protection Agency (Cal EPA)'s California-Baja
California Boarder Environmental Program. In 2006, when the
Council was established, there was no entity, despite the
numerous programs and initiatives amongst various agencies, to
coordinate or collaborate or provide for any information sharing.
At that time, the Legislature was focused on mitigating any
potential impacts stemming from the recently enacted North
America Free Trade Agreement (NAFTA), including challenges in the
areas of economic development, labor relations, health care, and
environmental protection. Numerous programs at various levels of
state government have been established to address these issues.
The Council coordinates cross-border programs, initiatives,
projects and partnerships within California state agencies,
establishes California state agency policies or the collection
and sharing of cross-border data, identifies and recommends
changes in the law needed to achieve Council goals and reports
annually to the Legislature.
The Council's 2011-12 annual report to the Legislature provided
an overview of Council activities, highlighting the Council
working "closely and effectively with local governments and
stakeholders on both sides of the border to make great strides in
public health and safety as well as environmental protection and
restoration." The report noted that recent population and
industrial growth, combined with the lack of public funding to
meet these expanding needs has led to pressures on public safety,
environmental ecosystems and infrastructure in the region.
According to the report, the region is experiencing greater
traffic congestion, water shortages, reduced air quality,
increased generation and disposal of hazardous wastes, sewage
infrastructure deficiencies and contaminated beaches and
waterways.
1. Trade with Mexico. According to information provided by United
States International Trade Commission (USITC), Mexico is the United
States' third-largest trading partner. Since the implementation of
the North American Free Trade Agreement (NAFTA), Mexico and the
United States have significantly strengthened their economic ties.
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Mexico ranks third as a source of U.S. imports ($285.4 billion in
2011) and second as an export market for U.S. goods and services
($174.4 billion in 2011).
Beginning in 1999, Mexico became California's number one trade
partner. The Public Policy Institute released a study in 2004 that
highlighted how California and Mexico's 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. One estimate states that
Mexican exports include over 20% U.S. components. Top commodities
for this type of trade include: machinery, vehicles, instruments,
and electronics and electronic equipment. California's top five
exports to Mexico in 2012 were: Computer and Electronic Products
($8.3 billion), Transportation Equipment ($2.4 billion), Machinery,
except Electrical ($2 billion), Petroleum and Coal Products ($1.8
billion), and Chemicals ($1.5 billion).
2. Governor's Office of Business and Economic Development (GO-Biz) and
International Trade Efforts in California. In February 2010, the
Little Hoover Commission undertook a review of the state's economic
and workforce development programs. In its final report, Making up
for Lost Ground: Creating a Governor's Office of Economic
Development, it analyzed the status and effectiveness of current
programs since the 2003 demise of the Technology, Trade and
Commerce Agency and recommended the creation of a new governmental
entity to fill the void left by the dismantled agency.
The report called for a single entity that would promote greater
economic development, foster job creation, serve as a policy
advisor and deliver specific services (i.e., permitting, tax,
regulatory, and other information) directly to the California
business community. In April 2010, Governor Schwarzenegger issued
Executive Order S-05-10 as a means to operationalize the report
recommendations including the creation of the Governor's Office of
Economic Development (GOED).
In October 2011, the Governor signed AB 29 (cited and described
below), which effectively codified GOED and changed its name to
GO-Biz, effective January 1, 2012. Since its inception, the office
has served over 3,000 businesses, 95% of which are small. The most
frequent types of assistance include help with permit streamlining,
starting a businesses, relocation and expansion of businesses, and
regulatory challenges.
When TTCA was eliminated in 2004 due to its poor administrative
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performance, the authority for all state trade activity was also
eliminated and the few remaining programs came under the umbrella
of the Business, Transportation and Housing Agency (BTH). The
former International Investment Division under TTCA had 91
employees and a budget of $43 million, allowing it to engage in
activities like formal marketing. Beginning in the 2005-06
Session, several legislative measures were introduced to reinstate
the state's trade authority. SB 1530 (Romero, 2006) addressed
these concerns by requiring BTH to undertake a trade study to
determine what role the state should play in international trade
and foreign investment activities and required them to establish a
business advisory committee, and development of a trade strategy
consistent with the study and acts as the vehicle for implementing
the state's trade policy. The first strategy was published in
February 2008 and most recent was issued in February 2014.
The February strategy highlighted strategic objectives intended to
implement an overall policy of creating jobs, increasing revenues
for California enterprises, and improving California's
international competitiveness by expanding the export of California
goods and services and by increasing foreign direct investment into
the state. The objectives include:
Developing a comprehensive, coordinated and cohesive
strategy development framework with a clear vision to expand
trade and investment, which includes other relevant state
agencies, with input from private and public sector
stakeholders.
Implementing more proactive outreach, awareness,
education and engagement programs both within the state for
California-based companies and through foreign partners and
trade office(s).
Maximizing China Trade Office resources and
opportunities to expand exports and investment.
Developing an action plan to address key challenges
facing California's ports and related infrastructure to ensure
their competitiveness.
Re-engaging and strengthening working relationships with
the Office of the U.S. Trade Representative and the state's
Congressional delegation to advocate California interests
related to international trade and investment.
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Developing and implementing a more user-friendly,
comprehensive, interactive and useful website to assist
California companies wanting to export and to attract foreign
investment.
In the report, GO-Biz advised it will reevaluate, when appropriate
or necessary, the recommended objectives and actions in order to
achieve the state's overall international trade and investment
policy goals.
In February 2014, Governor Brown announced the creation of a
California International Trade and Investment Advisory Council
(Council) which will advise GO-Biz on strategies to expand
international trade and investment for California businesses.
Specifically, in announcing its creation, the Governor noted that
the Council "will assist GO-Biz in identifying foreign markets with
the greatest potential for export expansion and in developing
specific export strategies for those markets - including the
state's top trading partners, Canada, Mexico and China, and
emerging markets such as Brazil and India."
Until the creation of GO-Biz there were only a very small number of
former International Investment Division staff working on trade
related issues and activities for the state. GO-Biz now has
authority for undertaking international trade and foreign
investment activities, including establishing any international
trade and investment office ( AB 2012 , Perez, Chapter 294, Statutes
of 2012). GO-Biz has partnered with the Bay Area Council to open a
California-China Trade and Investment office in Shanghai's downtown
Yangpu district. In a March 2013 report to the Legislature on the
status of this effort, GO-Biz described the office's goals "to
drive increased employment, revenues at California enterprises, tax
revenues, and international competitiveness in California" which
will be accomplished through promoting investment in California;
facilitating two-way international business growth, with an
emphasis on expanding foreign sales by California employers,
including not only manufacturers, agricultural enterprises, and
commodity producers, but also service providers such as
universities, banks, consulting companies, and the like; supporting
continued growth of California's role as a gateway state for goods
movement and passenger travel; and identifying and addressing
barriers to international expansion by California employers.
1. Related Legislation This Year. SB 511 (Lieu) of 2014 would require
GO-Biz to convene a statewide business partnership for port trade
promotion and would create an export finance office to provide
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export assistance to small and medium sized companies. ( Status:
The bill is currently pending in the Assembly Committee on Jobs,
Economic Development and the Economy.)
SB 928 (Correa) of 2014 requires GO-Biz to establish an
international trade and investment office in Mexico City, Mexico by
January 1, 2016. ( Status: The bill is pending in the Assembly.)
AB 337 (Allen) of 2013 updates requirements for the international
trade strategy prepared by GO-Biz to be based on current and
emerging market conditions and the needs of investors, businesses,
and workers to be competitive in global markets. ( Status: The
bill is pending in the Senate Committee on Appropriations.)
AB 2713 (Quirk-Silva) of 2014 authorizes GO-Biz to establish
public-private partnerships to help guide state activities related
to the export of California products and requires GO-Biz to
establish the South Korean Trade Promotion Advisory Committee to
help guide state activities related to the export of California
products to South Korea and the attraction of employment-producing
direct foreign investment by South Korean investors. ( Status: The
bill is pending in the Senate Committee on Appropriations.)
2. Prior Related Legislation. SB 592 (Lieu) of 2013 was identical to
SB 511 and also would have required GO-Biz to provide a port trade
promotion strategy to the Legislature on or before April 1, 2014.
( Status: The bill was held in the Assembly Committee on
Appropriations.)
SB 810 (Price, 2013) would have authorized the California
Transportation Financing Authority to award $500 million in tax
credit certificates to exporters and importers, as defined, for the
specified increases in cargo tonnage or value, net increases in the
number of qualified full-time employees hired in California, or
capital investment in a cargo facility. ( Status: The bill is
pending in the Senate Committee on Governance and Finance.)
AB 412 (Allen) of 2013 stated the intent of the Legislature to
enact legislation to enhance and expand opportunities for
California businesses to engage in international trade. ( Status:
The bill was held in the Assembly Committee on Appropriations.)
AB 886 (Allen) of 2013 stated the intent of the Legislature to
enact legislation that would address issues that enhance and expand
opportunities for California business to engage in international
trade with Latin America and other nations. ( Status: The bill was
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held in the Assembly Committee on Appropriations.)
AB 1067 (Medina, Chapter 535, Statutes of 2013) established the
California Foreign Investment Program within GO-Biz as the lead
entity for overseeing the state's participation in the federal the
EB-5 visa program.
AB 1081 (Medina) of 2013 would have required the international
trade and investment strategy prepared by GO-Biz to include the
identification of trade-related infrastructure enhancements to
support the state's international trade policies, programs, and
services and requires the interregional transportation improvement
program prepared by the Department of Transportation to include
projects to improve international movement of goods through air,
land, and water ports. ( Status: The bill was held in the Assembly
Committee on Appropriations.)
AB 1088 (Muratsuchi) would have required GO-Biz, no later than
January 1, 2016, to establish an overseas trade office in Tokyo,
Japan. ( Status : This bill was never heard in a policy committee.)
AB 1201 (Allen) of 2013 stated the intent of the Legislature to
enact legislation that would address issues that enhance and expand
opportunities for California business to engage in international
trade with the European Union and other nations. ( Status: The
bill was never heard in a policy committee.)
AJR 4 (Hueso, P�rez, Res. Chapter 24, Statutes of 2013) urges the
federal government to fund necessary improvements at the San
Ysidro, Calexico, and Otay Mesa Ports of Entry.
AB 2012 (Perez, Chapter 294, Statutes of 2012) transferred the
authority for undertaking international trade and foreign
investment activities from BTH to GO-Biz, including establishing
any international trade and investment office.
SB 460 (Price) of 2011 included similar language as contained in SB
511 and SB 592 above, ( Status : The bill was held in the
Assembly Committee on Appropriations.)
SB 830 (Wright, 2011) is virtually identical SB 810 of 2013.
( Status: This measure failed passage in the Senate Committee on
Revenue and Taxation.)
SCR 33 (Price, Resolution Chapter 60, Statutes of 2011) expressed
the sentiment of the Legislature that the EB-5 visa program is
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beneficial to the state's economic development and provides
important opportunities for foreign direct investment to
California.
AB 29 (John A. P�rez, Chapter 475, Statutes of 2011) established
GO-Biz within the Governor's Office for the purpose of serving as
the lead entity for economic strategy and marketing of California
on issues relating to business development, private sector
investment and economic growth.
AB 1137 (V. Manuel P�rez, 2011) would have facilitated local
economic development and job creation by assisting small business
to access new export markets for their goods and services, updating
the law relating to free trade zones, and authorizing the use of
new federal funds under the Small Business Jobs Act of 2010.
( Status: This measure was held in the Senate Committee on
Appropriations.)
AB 2656 (Calderon, 2011) is virtually identical to SB 810 of 2013.
( Status: This measure was held in the Assembly Committee on
Appropriations.)
SB 1175 (Price, 2010) would have required the Secretary of BTH to
direct the California Travel and Tourism Commission to conduct a
review of its principal mission and core competencies in order to
determine if the commission should include trade promotion in its
strategic marketing plan or other future plans of the commission
and provide a report to the Legislature. ( Status: This measure
was held in the Senate Committee on Rules.)
AB 2443 (Perez, 2010) required the state point of contact for trade
agreements 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. The bill
also created a new process for the establishment of Sister State
relationships with a purpose of promoting economic growth and trade
and investment opportunities. ( Status: This measure was vetoed by
the Governor.)
AB 1409 (Jobs, Economic Development and the Economy Committee) of
2011 would have required that the next update by BTH of the
international trade and investment strategy to include policy
goals, objectives and recommendations from the state Goods Movement
Action Plan. ( Status : The bill was amended to deal with another
subject matter and held in the Senate Committee on Rules in 2012.)
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AB 1558 (Assembly Committee on Jobs, 2009) aimed to recodify and
reorganize sections of the Government Code to create one
comprehensive code for the state's international trade activities
and programs. ( Status: The measure was amended to deal with
reorganization of the state's economic development programs. This
measure was held in the Senate Committee on Appropriations in
2010.)
AB 1722 (Committee on Jobs, Economic Development, and the Economy,
2008) would have required BT&H to provide the Legislature with a
copy of the international trade and investment policy, which is a
result of its work on the required international trade study and
strategy. ( Status: This measure was vetoed by the Governor.)
AJR 14 (Jeffries, Resolution Chapter 73, Statutes of 2007)
memorialized the President of the U.S. and Congress to enact
legislation to ensure that a substantial increment of new revenues
derived from customs duties and importation fees be dedicated to
mitigating the economic, mobility, security, and environmental
impacts of trade in California and other trade-affected states
across the U.S.
SB 1513 (Romero, Chapter 663, Statutes of 2006) provided new
authority for BT&H to undertake international trade and investment
activities, and as a condition of that new authority, directs the
development of a comprehensive international trade and investment
policy for California.
AB 3021 (Nunez, Chapter 621 of 2006) established the current
Council.
AB 1395 (Nunez) of 2005 would have required the Secretary of Cal
EPA and the Secretary of BTH to develop and coordinate a strategic
plan, and make recommendations regarding an appropriate governance
structure for California-Mexico relations. ( Status: This measure
was vetoed by the Governor.)
AB 2399 (Garcia) of 2005 would have required the Secretary of BTH
to prepare and provide to the Legislature a study on infrastructure
development along the California-Mexico border and to report
whether there is a need for alternative financing mechanisms.
( Status: The bill was amended to deal with a different subject
matter.)
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SB 772 (Ducheny, Chapter 214, Statues of 2005) required the
California Integrated Waste Management Board's waste tire five-year
plan to incorporate information on border region activities on
waste tires.
AB 1183 (Ridley-Thomas) of 2003-04 would have required BTH to
conduct a feasibility study on the establishment of a California
and Mexico Border Economic Infrastructure Financing Authority.
( Status: This measure was held in the Assembly Committee on
Appropriations.)
SB 865 (Polanco) of 2001 would have established a California and
Mexico Border Infrastructure Financing Authority within the State
Treasurer's Office. ( Status: This measure was held in the Assembly
Committee on Appropriations.)
SB 207 (Peace, Chapter 773, Statutes of 1999) permitted the
establishment of Infrastructure Financing Districts along the
California-Mexico border.
3. Suggested Author's Amendment. The Council's activities, as
highlighted in the 2011-12 annual report, focus on mitigating many
of the significant health and public safety challenges that
California and Mexico face, most especially in border communities.
The majority of California's 32 current agreements or Memorandums
of Understanding with foreign governments focus on environmental
issues or policies. There is some concern that, while it is
imperative for the state to support and promote trade and
international partnerships with other nations as a means of
boosting our economy and the ability for California businesses to
have an international market for their goods and services, this
bill could have the effect of shifting the administration of the
Council's work to an entity that was intended to be under the
Governor for high level economic development activities, by
requiring the Director of GO-Biz to be the Chair of the Council.
The Author may wish to keep language in the bill to add the
Director of GO-Biz to the Council as a means of further enhancing
important strategies and conversations related to trade with
Mexico, but strike the requirement that the GO-Biz Director serve
as Chair.
On page 6, strike lines 37-38 and replace with current law
identifying the Secretary for Environmental Protection as the chair
of the council.
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SUPPORT AND OPPOSITION:
Support:
None on file as of June 18, 2014.
Opposition:
None on file as of June 18, 2014.
Consultant:Sarah Mason