BILL ANALYSIS �
AB 690
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CONCURRENCE IN SENATE AMENDMENTS
AB 690 (Campos and Medina)
As Amended August 11, 2014
Majority vote
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|ASSEMBLY: |78-0 |(January 29, |SENATE: |36-0 |(August 13, |
| | |2014) | | |2014) |
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Original Committee Reference: L. GOV.
SUMMARY : Repeals and recasts statutory provisions relating to
the California-Mexico Border Relations Council (Border Relations
Council) and adds the Director of the Governor's Office of
Business and Economic Development (GO-Biz) to its membership.
The Senate amendments remove the designation of GO-Biz as the
chair of the Border Relations Council. The amendments also
remove the provisions related to the Office of California-Mexico
Affairs.
EXISTING LAW :
1)Establishes a separate Government Code title for issues
relating to foreign relations, which includes the assignment
of responsibilities to specific government entities. GO-Biz
is designated as the primary state agency responsible for
international trade and foreign investment activities,
excluding agriculture. The Natural Resources (NRA) and
Environmental Protection (EPA) Agencies are designated as the
primary state agencies responsible for the international
exchange of environmental protection and alternative energy
technologies.
2)Establishes the Border Relations Council consisting of the
California state agency Secretaries of EPA (chair), NRA,
Health and Human Services, Transportation, Food and
Agriculture, and the Director of the Governor's Office of
Emergency Services.
FISCAL EFFECT : None
COMMENTS : The United States (U.S.) and Mexican economies have
become increasingly integrated, which has brought both
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opportunities and challenges to California, most notably in the
areas of business development, labor relations, health care, and
environmental protection.
Beginning in 1999, Mexico became California's number one trade
partner, receiving $23.9 billion (14% of all exports) in goods
in 2013. Computers and electronic products have been
California's highest single export to Mexico since 2000. The
top five exports to Mexico were: Computer and Electronic
Products ($5 billion); Transportation Equipment ($2.5 billion);
Machinery, except Electrical ($2 billion); Petroleum and Coal
Products ($1.5 billion); and Chemicals ($1.5 billion). In 2013,
California imported $36 billion worth of goods and services from
Mexico. Mexican imports accounted for 9.5% share of total
imports to California.
According to a 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 for distribution. One estimate is
that 40% of the content of U.S. imports from Mexico were
originally made in the U.S. That means a large portion of the
money U.S. consumers spend on Mexican imports goes to U.S.
companies and workers.
Given the significance of California's trade with Mexico, it is
unfortunate that the state's two key forums for engaging with
Mexico do not include a role for the state's top economic and
business development organization, GO-Biz. This bill addresses
this policy oversight by adding GO-Biz to the Border Relations
Council and designates the Director of GO-Biz as Chair.
The policy committee analysis includes additional information on
the history of the California-Mexico coordinating bodies and the
economic importance of Mexico to the California economy.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0004890
AB 690
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