BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 888| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 888 Page 2 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 SB 888 Page 3 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. SB 888 Page 4 NC:cm 8/25/04 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****