(April 30, 2004) California Chamber-opposed legislation that in effect prohibits even the most basic and innocuous international commercial transactions passed the Senate Industrial Relations Committee this week.

SB 1492 (Dunn; D-Garden Grove) mandates: “No work involving information that is private or essential to homeland security shall be performed at a worksite outside of the United States.”

In opposing the bill, the Chamber noted that most international commercial transactions require at least one of the types of private information enumerated in the bill to be transmitted outside of the United States to be “worked on.”

One-fourth of California’s economic activity depends on foreign trade. SB 1492 would stop these commercial transactions and prevent Californians from participating in any commercial venture that has international implications without having to individually identify each and every piece of information they want sent outside of the United States.

For instance, an individual who wishes to purchase property in a country other than the United States would be required to individually identify each piece of financial information that is to be sent outside of the United States. Under this scenario, Californians would be prevented from engaging in any international purchase because the cost and time required to comply with SB 1492 would make such a commercial transaction impracticable for commercial institutions.

Individuals who seek medical treatment in foreign countries could be prohibited from doing so under another section of the bill.

SB 1492 passed on a party-line vote of 5-3. Voting Aye: Alarcon (D-San Fernando Valley), Dunn (D- Garden Grove), Figueroa (D-Fremont), Kuehl (D- Santa Monica), Romero (D-Los Angeles).  Voting No: Oller (R-R-San Andreas), Margett (R-Arcadia), McClintock (R- Thousand Oaks).

The Chamber believes the damage SB 1492 will do to Californians attempting to participate in global commerce outweighs any of the benefits from the bill,' continued DiMare.

For more information about this bill please visit the Government relations Section of our website at:www.calchamber.com.


Staff Contact: Dominic DiMare