BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SCR 82
                                                                  Page  1


          SENATE THIRD READING
          SCR 82 (Hueso)
          As Amended  June 4, 2014
          Majority vote  

           SENATE VOTE  :37-0  
           
           ECONOMIC DEVELOPMENT        8-0                                 
           
           ------------------------------------------------------------ 
          |Ayes:|Medina, Brown, Daly,      |                           |
          |     |Fong, Fox, Linder,        |                           |
          |     |Melendez, V. Manuel P�rez |                           |
          |     |                          |                           |
          |     |                          |                           |
           ------------------------------------------------------------ 
           SUMMARY  :  Memorializes the Legislature's desire to recommit to  
          the formalizing of a sister state relationship between  
          California and the State of Jalisco, Mexico (Jalisco), for the  
          purpose of promoting economic growth and well-being of small,  
          medium, and large corporations and by increasing their potential  
          trade and investment within the State of Jalisco.  Specifically,  
           this resolution  :   

          1)Makes declarations, which among other things, state:

             a)   California and Jalisco share a mutually beneficial  
               economic relationship that includes trade, investment, and  
               commerce in areas of high technology, manufacturing,  
               agriculture and tourism, among other important industries;

             b)   Guadalajara, Jalisco is the largest technology center in  
               Mexico and is increasingly recognized as an incubator for  
               small-scale technology start-ups and a main producer of  
               software, electronics, and digital products;

             c)   Generations of people from Jalisco reside in California  
               and represent the most populous community from Mexico in  
               California; and

             d)   Since the approval of ACR 183 (Firebaugh), Resolution  
               Chapter 148, Statutes of 2000, which called for the  
               establishment of a sister state relationship with the State  
               of Jalisco, many delegates from the California Legislature  








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               have visited Jalisco, as well as hosted delegations from  
               Jalisco in California in order to support the exchange of  
               business and culture.

          2)Resolves that the Legislature recommits to formalizing a  
            sister state relationship between California and Jalisco for  
            the purpose of promoting economic growth and well-being of  
            small, medium, and large corporations and by increasing their  
            potential trade and investment within Jalisco.

           FISCAL EFFECT  :  None

           COMMENTS  :  This resolution proposes the recommitment of the  
          Legislature to establish a sister state relationship between  
          California and Jalisco.  No relationship currently exists,  
          although a sister state proposal was put forth in 2000 by the  
          Legislature, but never finalized by Jalisco.   

          A sister state relationship is a formal declaration between two  
          regions, states, or nations.  Such an agreement is a symbol of  
          mutual goodwill.  Additionally, it is an effort to encourage and  
          facilitate mutually beneficial social, economic, educational,  
          and cultural exchanges.  Both the Legislative and Administrative  
          Branches of government have the authority to establish sister  
          state relationships.

          While the California Legislature has proposed 24 sister state  
          relationships, it appears that few have actually been brought to  
          fruition and, of those, there are no records of what actions  
          have been taken or the tracking of results of those actions.   
          The policy analysis includes additional information on Jalisco,  
          California's trade-based economy, and sister state relationships  
          in California and around the world.

          Background on Jalisco:  Jalisco is located in the west central  
          part of Mexico including borders along the Pacific Ocean and  
          seven other Mexican states.  The economy of the state accounted  
          for 6.24% of Mexico's gross domestic product (GDP) in 2012.  The  
          main sectors of the economy are trade at 21.3%; manufacturing at  
          18.8%; financial services and real estate at 13.9% and  
          construction at 9.1%.  Together they account for 63.1% of the  
          state GDP.  Jalisco earns just under 6% of Mexico's foreign  
          earnings from tourism and employment from the various  
          multinational corporations located in the state exporting more  








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          than $5 billion annually to 81 countries.  It ranks first among  
          the states in agricultural products, electronics,  
          telecommunications, and the manufacturing of jewelry and is the  
          second largest producer of furniture, beef, sugar cane, and  
          honey.   

          More people in California have roots in Jalisco than any other  
          state in Mexico.  In fact, many of the things that Californians  
          consider typically Mexican, such as mariachi music, charreadas  
          (rodeos), the Mexican Hat Dance, tequila, and the broad-rimmed  
          sombrero hat, are all derived from Jalisco's cultural heritage  
          and are not necessarily typical of the culture of other Mexican  
          states.  Jalisco is currently a sister state with the State of  
          Washington and Alberta, Canada.


           Analysis Prepared by  :    Toni Symonds / J., E.D. & E. / (916)  
          319-2090 


                                                                FN: 0003937