BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS


          Bill No:  SB 888
          Author:   Dunn (D), et al
          Amended:  8/23/04
          Vote:     21

           
           PRIOR SENATE VOTES NOT AVAILABLE

          ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Employment:  homeland security

           SOURCE  :     Author


           DIGEST  :    This bill prohibits the performance of any work  
          involving information that is essential to homeland  
          security at a work site outside of the United States.

           Assembly Amendments  delete the prior version.  As it left  
          the Senate, the bill enacted the "Repeal of Electricity  
          Deregulation Act of 2003".

           ANALYSIS  :    Existing law, by executive order of the  
          Governor, establishes the Office of Homeland Security.

          This bill prohibits the performance of any work involving  
          information that is essential to homeland security at a  
          work site outside of the United States (U.S.).   
          Specifically, this bill:

          1.Prohibits any work involving information that is  
            essential to homeland security from being performed at a  
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            work site outside of the U.S., unless the expertise  
            necessary to perform the work is unavailable in the U.S.

          2.Defines "information essential to homeland security" as  
            either of the following:

             A.    Information necessary to enhance the capability of  
                state and local jurisdictions to prepare for and  
                respond to terrorist acts, including, but not limited  
                to, acts of terrorism involving weapons of mass  
                destruction and nuclear, radiological, incendiary,  
                chemical, and explosive devices.

             B.    Information relating to physical and information  
                infrastructures, including, but not limited to, the  
                telecommunications, energy, water, and transportation  
                sectors.

          3.Provides that the prohibition does not apply to parts or   
            materials manufactured outside of the United States that  
            are necessary to perform work involving information that  
            is essential to homeland security.

          4.Requires the Office of Homeland Security to adopt  
            regulations necessary to implement these provisions.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/23/04) (per Assembly Labor and  
          Employment Committee analysis)

          American Federation of State, County and Municipal  
          Employees
          California Labor Federation, AFL-CIO
          California School Employees Association
          International Longshore & Warehouse Union
          Ship Clerk's Association, Local 34

           OPPOSITION  :    (Verified 6/23/04) (per Assembly Labor and  
          Employment Committee analysis)

          America's Health Insurance Plans
          Association of California Life and Health Insurance  







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          Companies
          California Healthcare Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          recent media reports about sensitive and private  
          information being offshored raise serious concerns about  
          how to best enforce our state's privacy and security  
          protections in today's global economy. 

          According to the author's office, since September 11, 2001,  
          we have become increasingly concerned with protecting our  
          state from terrorist attack.  At a time when we are  
          spending hundreds of millions of federal and state dollars  
          to protect our dams, bridges, roadways and other  
          infrastructure, it seems foolish to be allowing engineering  
          schematics relating to the state's electricity grid to be  
          worked on overseas.  Recently, a container exploded at the  
          Port of Los Angeles after being inspected at an offshore  
          site.  More and more, containers are not being inspected  
          for their contents once they enter a California port.  This  
          puts the health and safety of port workers as well as the  
          public at large at risk. 

          Similarly, the California Labor Federation, AFL-CIO  
          contends that in these times where we experience the threat  
          of terrorist attacks, Californians should not have to  
          compromise their security simply because businesses are  
          looking for a cheaper bottom line.  

          The International Longshore and Warehouse Union, AFL-CIO  
          (ILWU) argues that prior to September 11, 2001, ILWU marine  
          clerks verified the manifest of cargo containers in  
          California and elsewhere on the West Coast.   The clerks  
          also inspected every empty container that came to port.   
          The ILWU contends that, ironically, since September 11th  
          this no longer happens with any regularity.  This bill will  
          ensure that work related to homeland security at our  
          California ports will be performed in the U.S. instead of a  
          foreign country. 

           ARGUMENTS IN OPPOSITION  :    Opponents argue that the  
          broadly worded language of this bill will interfere with  
          important and legitimate international trade and commerce.








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          NC:cm  8/25/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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