BILL ANALYSIS                                                                                                                                                                                                    �



                                                               SCR 121 
                                                               Page  1


       SENATE THIRD READING
       SCR 121 (Block, et. al)
       As Amended  June 30, 2014 
       Majority vote

        SENATE VOTE  :34-0  
        
        ECONOMIC DEVELOPMENT       8-0                                        
        
        ----------------------------------------------------------------- 
       |Ayes:|Medina, Mansoor, Campos,  |     |                          |
       |     |Daly, Fong, Fox, Linder,  |     |                          |
       |     |Melendez                  |     |                          |
       |     |                          |     |                          |
        ----------------------------------------------------------------- 
        SUMMARY  :  Memorializes the Legislature's support for the memorandum of  
       understanding (MOU) calling for strategic partnerships between  
       California and Israel.  Specifically,  this bill  :  

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

          a)   The Governor of California and the Prime Minister of Israel  
            signed a MOU calling for  strategic partnerships on innovation,  
            exchanges, and cooperation and that the signing of the MOU was  
            the culmination of an effort started by the California  
            Legislature in 2009;

          b)   The participants in the MOU seek to expand the current level  
            of cooperation between Israel and California in the areas  
            including alternative energy, environmental technology, health,  
            food and agriculture, research, and development; and


          c)   The MOU will solidify a formal relationship between the two  
            parties to foster economic cooperation and economic development,  
            facilitate joint industrial research and development, and enhance  
            business relationships between Israeli universities and  
            universities throughout California.

       2)States that the MOU envisions, among other actions, that the  
         following actions will be undertaken:

          a)   Bilateral, interagency working groups with international  
            expertise will be convened to coordinate initiatives;








                                                               SCR 121 
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          b)   The California innovation hub network will be used to  
            facilitate collaborations between Israeli and Californian  
            entrepreneurs and researchers;

          c)   Ad hoc task forces, trade delegations, and professional  
            exchanges between Israel and California in key sectors will be  
            encouraged;  

          d)   Public-private partnerships between Californian and Israeli  
            entities in the areas of economic development, social  
            entrepreneurship, or academic research will be established; and,

          e)   Collaboration between universities in California and Israel on  
            research and development will be facilitated.
       3)Resolves that the Legislature supports the MOU for establishing  
         strategic partnerships between California and the nation of Israel  
         that support joint innovation in clean technologies and water  
         conservation, health and biotechnology, cybersecurity, education,  
         agricultural technology, research, and other informational  
         exchanges, and that also promote mutual cooperation, understanding,  
         and friendship by encouraging trade delegations and collaboration on  
         mutual projects and issues of interest.

        FISCAL EFFECT  :  None 

        COMMENTS  :  This resolution, sponsored by the California Legislative  
       Jewish Caucus (Caucus), recognizes the Legislature's support for the  
       March 5, 2014, MOU between the State of California and Country of  
       Israel.  The MOU lays the foundation and framework for joint research  
       and development projects, academic and business exchanges, and the  
       overall enhancement of the cooperation between the two signatories. 

       The Legislative Jewish Caucus:  The Caucus was formed in January of  
       2014 to discuss and advocate for issues of priority to its members,  
       including immigration reform, civil rights including anti-Semitism on  
       college campuses, and Israel.  Members of the Caucus have described it  
       as secular, rather than religious.  One of the first official acts of  
       the Caucus was to participate in the California State Senate's  
       official ceremony honoring civil rights leader Martin Luther King,  
       Jr.,  Senator Marty Block, chair of the Caucus, spoke about the  
       significant work of Martin Luther King Jr. and the important role Jews  
       played in the civil rights movement.









                                                               SCR 121 
                                                               Page  3


       California's Trade Economy:  International trade and foreign  
       investment serve as critical components of California's $2 trillion  
       economy.  If California were a country, it would be the 17th largest  
       exporter and the 14th largest importer in the world.  Merchandise  
       exports from California ($168 billion) accounted for over 10.6% of  
       total United States exports in goods, shipping to over 220 foreign  
       destinations in 2013.  Statewide, 4.4 million California jobs are  
       dependent on foreign trade.  Over 562,700 California workers benefit  
       from jobs with foreign-owned firms, which accounts for 5.1% of all  
       private sector jobs in the state.  

        ----------------------------------------------------------------------- 
       |      California Export based on Movement of Goods 2012 and 2013       |
        ----------------------------------------------------------------------- 
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |     Rank     |   Country    |  2012 Value  |  2013 Value  | 2012 % Share | 2013 % Share |  % Change,   |
       |              |              |              |              |              |              | 2012 - 2013  |
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |     ---      |Total         |       161,880|       168,128|          10.5|          10.6|           3.9|
       |              |California    |              |              |              |              |              |
       |              |Exports and % |              |              |              |              |              |
       |              |Share of U.S. |              |              |              |              |              |
       |              |Total         |              |              |              |              |              |
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |     ---      |Total, Top 25 |       143,671|       149,020|          88.8|          88.6|           3.7|
       |              |Countries and |              |              |              |              |              |
       |              |% Share of    |              |              |              |              |              |
       |              |State Total   |              |              |              |              |              |
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      1       |Mexico        |        26,370|        23,933|          16.3|          14.2|          -9.2|
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      2       |Canada        |        17,424|        18,819|          10.8|          11.2|           8.0|
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      3       |China         |        13,970|        16,359|           8.6|           9.7|          17.1|
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      4       |Japan         |        13,033|        12,711|           8.1|           7.6|          -2.5|
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      5       |South Korea   |         8,246|         8,394|           5.1|           5.0|           1.8|
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |              |              |              |              |              |              |              |
       |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
       |      17      |Israel        |         8,246|         2,323|           5.1|           1.4|         -12.5|
        -------------------------------------------------------------------------------------------------------- 
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                                                               SCR 121 
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       |Source: tradeport.org                                                  |
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        Analysis Prepared by  :  Toni Symonds and Holland Nguyen / J., E.D. & E.  
       / (916) 319-2090
                                                                        FN:  
                                                                   0004147