BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2713
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 2713 (Quirk-Silva) - As Amended:  May 5, 2014 

          Policy Committee:                              JEDE Vote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the Governor's Office of Business and  
          Economic Development (GO-BIZ) to establish one or more  
          public-private partnerships to help guide state activities  
          relating to the export of California products and the attraction  
          of employment-producing direct foreign investment with key  
          country and industry partners. Specifically, this bill:

          1)Requires GO-BIZ to establish a South Korean Trade Promotion  
            Advisory Committee to 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.

          2)Authorizes GO-BIZ, for each public-private partnership  
            established, to accept nonstate moneys, including, but not  
            limited to, private sector funds, for activities related to  
            this particular public-private partnership, consistent with  
            specified requirements. 

          3)Requires private sector moneys to be deposited in the  
            Public-Private Partnership Subaccount, which would be  
            established within the Economic Development and Trade  
            Promotion Account and would be continuously appropriated to  
            the Director of GO-BIZ, as specified.

           FISCAL EFFECT  

          Ongoing General Fund administrative costs to GO-Biz of  
          approximately $100,000 to establish a public-private  
          partnership.









                                                                  AB 2713
                                                                  Page  2

           COMMENTS  

           1)Purpose  . According to the author, South Korea is the 12th  
            largest economy in the world, 11th in purchasing power parity,  
            and third largest economy in Asia (Behind China and Japan).  
            Majority of South Korea's trade is with USA and with Pacific  
            Rim State, California. In 2012 South Korea was in the five top  
            trading partners of California. The landmark Korea-U.S. Free  
            Trade Agreement (KORUS FTA) entered into force on March 15,  
            2012, underscoring the depth of bilateral trade ties. The  
            agreement is expected to boost exports by billions of dollars  
            annually for both sides and create new export-related jobs in  
            both South Korea and the United States.

            This bill is intended to grant greater access for Korean and  
            California and create an opportunity for economic development.

           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081