BILL ANALYSIS                                                                                                                                                                                                    







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          |Hearing Date:June 26, 2006     |Bill No:AB                |
          |                               |3021                      |
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               SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC  
                                     DEVELOPMENT
                             Senator Liz Figueroa, Chair

                         Bill No:        AB 3021Author:Nunez
                 As Amended:  April 6, 2006              Fiscal: Yes

          
          SUBJECT:  California - Mexico relations.

          SUMMARY:  Establishes the California-Mexico Border  
          Relations Council comprised of all agency secretaries and  
          the Director of the Office of Emergency Services to  
          coordinate all border activities of state agencies.  

          Existing law:

          1)Establishes the office of California-Mexico Affairs and  
            places the operations of the California Office of  
            Southwest Border Regional Conference within this office.   


          2)Assigns the former duties of the Commission of the  
            Californias to the office of California-Mexico Affairs.  

          3)Generally charges the office of California-Mexico Affairs  
            with furthering and developing favorable economic,  
            educational and cultural relations with bordering Mexican  
            states and other U.S. border states.

          4)Recognizes California's participation in the California  
            Office of Southwest Border Regional Conference (formerly  
            commission) which was established as a part of a joint  
            American border states effort to further and develop  
            favorable relations with Mexican border states.

          5)Generally provides for additional programs administered  
            by various state agencies regarding issues of concern  
            between California and Mexico.





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          This bill:

          1)Would establish the California-Mexico Border Relations  
            Council, with membership consisting of all agency  
            secretaries and the Director of Emergency Services.   
            Would establish the Secretary for Environmental  
            Protection as the chair of the Council.

          2)Would direct the Council to coordinate and establish  
            policies to coordinate all cross-border activities within  
            state government in order to improve coordination of  
            programs and information sharing among agencies.

          3)Requires the Council to make recommendations to the  
            Legislature on improving coordination.

          4)Requires the Council to report to the Legislature  
            annually on the Council's activities beginning January 1,  
            2008.

          5)Defines the following terms:

             a)   "Border" means the line of demarcation between  
               California and Mexico.

             b)   "Council" means the California-Mexico Border  
               Relations Council.

             c)   "Public agency" means a city, county, city and  
               county, district, or the state or any agency or  
               department of the state.

          6)Makes the following findings and declarations:

             a)   The California Research Bureau recently identified  
               in its "Inventory of Mexico Related Projects Conducted  
               by California State Agencies," more than 100 programs,  
               initiatives, projects, and partnerships that exist  
               within state government and are administered by 12  
               departments and agencies, eight boards and  
               commissions, and various campuses of the University of  
               California, the California State University, and the  
               California Community Colleges. 

             b)   Programs generally fall into the areas of trade,  





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               immigration, environment, energy, transportation,  
               health, homeland security, agriculture, education, and  
               tourism.

             c)   The Office of California-Mexico Affairs was  
               previously housed within the Technology, Trade, and  
               Commerce Agency, which no longer exists. Therefore,  
               the office is not active in coordinating these  
               programs.

             d)   The State Water Resources Control Board directs the  
               state's border environmental efforts through its  
               Border Environmental Program. The program is a  
               collaborative effort that includes the California  
               Environmental Protection Agency, other state agencies,  
               the State of Baja California, and tribal nations  
               located along the border region. All California  
               Environmental Protection Agency boards, departments,  
               and officers actively participate in the program to  
               ensure that environmental issues are addressed on a  
               multimedia basis.

             e)   There is a need to develop a state government  
               structure that will provide effective coordination of  
               various state agency efforts, as well as a thoughtful  
               and collaborative assessment of current and future  
               program development that will serve the needs of both  
               California and Mexico in the 21st century.

          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, annual General Fund cost of about $100,000 for  
          one position to support the work of the council.
          
          COMMENTS:
          
          1.Purpose.  According to the Author, neither the Commission  
            on the Californias nor the California Office of Southwest  
            Border Regional Conference within the Office of  
            California-Mexico affairs includes in their membership  
            any of the heads of the agencies or department that  
            administer the various cross-border programs.  The Author  
            argues, that despite the numerous programs and  
            initiatives amongst various agencies, no entity exists to  
            coordinate or collaborate on the programs or provide for  
            any information sharing.






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          2.Background.  The U.S. and Mexican economies have become  
            increasingly integrated, particularly since the 1994  
            North American Free Trade Agreement (NAFTA).  This  
            integration has brought California and Mexico both  
            opportunities and challenges, most notably in the areas  
            economic development, labor relations, health care, and  
            environmental protection.  Numerous programs at various  
            levels of state government have been established to  
            address these issues.

            The Office of California-Mexico Affairs (office) was  
            initially created in 1982.  The office oversaw the  
            activities of the former Commission of the Californias  
            (Commission) and currently is charged with overseeing the  
            California Office of the Southwest Border Regional  
            Conference (Conference).  

            The Office was part of the Technology, Trade and Commerce  
            Agency, and lost its funding and positions when that  
            Agency was eliminated by Chapter 229, Statutes of 2003. 

            The general charge of the Commission, prior to  
            elimination, and the current charge of the Office and the  
            Conference is to develop favorable economic, educational,  
            and cultural relations with Baja California, Baja  
            California Sur and territories with the Republic of  
            Mexico and coordinate with other American boarder states.  
            The Office is charged with serving as a clearinghouse for  
            information and assistance to other state agencies which  
            are involved with Mexico.

            Last year, the Governor's California Performance Review  
            proposed both the Office and Commission for elimination  
            from statute. The approved 2005-06 budget eliminated the  
            Commission, but retained the Office.  Committee staff  
            understands that the Office of California-Mexico Affairs  
            is not active in coordinating programs today.

          3.Related Legislation.  

             AB 2399  (Garcia, 2005-2006, Sen Business, Professions and  
            Economic Development) Would require the Secretary of  
            Business, Transportation and Housing (BTH) to prepare and  
            provide to the Legislature a study on infrastructure  
            development along the California - Mexico border and to  
            report whether there is a need for alternative financing  





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            mechanisms.

             AB 1395  (Nunez, 2005-2006 Session, Vetoed by Governor)  
            Would have required the Secretary of Environmental  
            Protection and the Secretary of Business, Transportation  
            and Housing to develop and coordinate a strategic plan,  
            and make recommendations regarding an appropriate  
            governance structure for California-Mexico relations.

             SB 772  (Ducheny, 2005, Chapter 214, Statues of 2005)  
            Requires the California Integrated Waste Management  
            Board's waste tire five-year plan to incorporate  
            information on border region activities on waste tires.

             AB 1183  (Ridley-Thomas, 2003-04, Held in Asm.  
            Appropriations) Would have required BTH to conduct a  
            feasibility study on the establishment of a California  
            and Mexico Border Economic Infrastructure Financing  
            Authority.  

             SB 865  (Polanco, 2001-02, Held in Asm. Appropriations)  
            would have established a California and Mexico Border  
            Infrastructure Financing Authority within the State  
            Treasurer's Office. The bill was held on the Assembly  
            Committee on Appropriations' Suspense File.

             SB 207  (Peace, 1999-00, Chapter 773, Statutes of 1999)  
            permits establishment of Infrastructure Financing  
            Districts along the California-Mexico border.


          SUPPORT AND OPPOSITION:
          
           Support:  None on File.

            Opposition:  None on File.


          Consultant: Laura Metune