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AB-3046 California Office of Trade and Investment.(2007-2008)

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AB3046:v98#DOCUMENT

Amended  IN  Assembly  April 21, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 3046

Introduced  by Committee on Jobs, Economic Development, and the Economy  (Arambula (Chair), Silva (Vice Chair), Caballero, Fuentes, Garcia, Price, and Salas)
(Principal Coauthor(s): Assembly Member Tran)

February 27, 2008

An act to amend Sections 13996.45, 13996.6, and 15570 of, and to add Section 13996.46 to, the Government Code, relating to the California Office of Trade and Investment.


LEGISLATIVE COUNSEL'S DIGEST


AB 3046, as amended, Committee on Jobs, Economic Development, and the Economy. California Office of Trade and Investment.
Existing law designates the Business, Transportation and Housing Agency as the primary state agency for supporting foreign trade and investment in California. Existing law requires the Secretary of Business, Transportation and Housing to convene a biennial economic strategy panel to provide recommendations for a state economic development strategic plan, and convene a statewide partnership for international trade and investment.
This bill would authorize the secretary to establish the California Office of Trade and Investment to assist the agency in carrying out its duties in supporting foreign trade and investment. This bill would, if the secretary establishes the office, require the office to perform specified duties, in addition to the ones imposed by the secretary, and require a representative of the office to serve as a member of the biennial economic strategy panel. This bill would also require the secretary to convene an advisory group on attracting private investment in California.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 13996.45 of the Government Code is amended to read:

13996.45.
 (a) (1) Subject to paragraph (2), and subject to Section 13996.75, the Business, Transportation and Housing Agency shall be the primary state agency authorized to do all of the following:
(A) Attract employment-producing foreign investment to the state.
(B) Cooperate in international public infrastructure projects.
(C) Provide support for California business in accessing international markets, including, but not limited to, export assistance.
(D) Engage in other trade or foreign investment-related activities specifically assigned by the Governor.
(2) Nothing in this chapter shall be construed to confer powers or impose duties upon the agency in conflict with any powers conferred or duties imposed upon the Department of Food and Agriculture with respect to the promotion of California agriculture, fish, and forest exports.
(b) The international trade and investment activities of the agency shall be monitored by the Legislature, and all public moneys in its budget expended for those purposes, shall be subject to approval by the Legislature.
(c) The Secretary of Business, Transportation and Housing shall develop an international trade and investment policy, which shall be consistent with the economic development strategic plan prepared by the California Economic Strategy Panel pursuant to Section 15570, and shall provide guidance to strategies and plans from other agencies and departments related to workforce and infrastructure development.
(d) In carrying out his or her duties under this chapter, the secretary is authorized to establish the California Office of Trade and Investment.
(e) California’s international trade and investment policy shall be directed through its state strategy, which shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.

SEC. 2.

 Section 13996.46 is added to the Government Code, to read:

13996.46.
 (a) If the secretary establishes a California Office of Trade and Investment, pursuant to subdivision (d) of Section 13996.45, the secretary is authorized to redirect staff from within the agency in order to colocate staff to perform work for the office and support a senior-level policy advisory group on international trade and foreign investment.
(b) If the secretary establishes a California Office of Trade and Investment, pursuant to subdivision (d) of Section 13996.45, the office shall, in addition to any other duties assigned by the secretary, do all of the following:
(1) Facilitate the implementation of the international trade and foreign investment strategy developed and approved pursuant to Section 13996.55.
(2) Ensure that the requirements of Section 13996.75 are fulfilled.
(3) Oversee the operation of the overseas trade offices, to the extent that offices are established and maintained pursuant to the requirements of this chapter.
(4) Facilitate the development of a multiagency coordinated effort to support international trade negotiations that benefit California businesses.
(5) Engage in state, national, and international infrastructure development discussions to ensure that California’s trade-related infrastructure facilitates the state’s global competitive advantage.
(6) Engage in state and national discussions on workforce training discussions to ensure that California’s trade-related infrastructure facilitates workforce development activities enhance the state’s global competitive advantage.
(7) Engage in state and federal business climate discussions to ensure that California’s trade-related infrastructure facilitates enhance the state’s global competitive advantage is maintained and enhanced.
(8) Facilitate the review and streamlined delivery of existing federal, state, and local public and private programs that serve international trade and foreign investment needs.
(9) Work collaboratively with the California Small Business Advocate and the state’s small business liaisons and advisory boards to enhance the ability of small businesses and microenterprise to successfully participate in the global economy.
(10) Engage in state, federal, and international finance and investment discussions to ensure that California’s trade-related infrastructure facilitates the state’s global competitive advantage.
(11) Designate a lead adviser for trade development, investment development, and intergovernmental and regulatory affairs.
(12) Serve as the lead for an intragovernmental coordinating body on international trade and foreign investment activities, programs, and services. The objective of the coordinating body is to maximize state resources, streamline program and service delivery, reduce duplication of state efforts, support businesses’ ability to be globally competitive, and support the state’s ability to be globally competitive in attracting foreign investment.
(13) Work in partnership with the state point of contact, designated pursuant to Section 99501, to establish protocols for reviewing proposed national and international trade agreements and making those reviews available on its Web page.
(14) Systematically and routinely review and make comments on federal and state legislation, proposed regulations, and other official actions that potentially impact the competitive advantage of the state and of California businesses within the global marketplace.
(15) Work collaboratively with the secretary’s business advisory committee to find resources and solutions to address the concerns and opportunities identified by the committee.
(16) Engage major international trade and foreign investment stakeholders directly for the purpose of improving the global competitiveness of the state and of California businesses.
(c) If the secretary establishes a California Office of Trade and Investment, pursuant to subdivision (d) of Section 13996.45, the secretary shall appoint a representative from the office to the California Economic Strategy Panel.

SEC. 3.Section 13996.6 of the Government Code is amended to read:

13996.6.(a)The Secretary of Business, Transportation and Housing shall convene a statewide business partnership for international trade and investment no later than March 1, 2007.

(b)The business partnership shall include representatives from small, medium, and large businesses and industries, as well as nongovernmental organizations and government representatives.

(c)The business partnership shall advise the secretary on business needs and strategy priorities as they relate to international trade and investment. This information shall be used in establishing the needs and priorities in the plan developed pursuant to Section 13996.5 and the strategy developed pursuant to Section 13996.55, and for any other uses as determined by the secretary.

(d)(1)The secretary shall convene an advisory group on attracting private investment to California.

(2)The advisory group shall provide the secretary with information and recommendations on the needs of business, financers, and investors that shall be considered the next following update of the strategy developed pursuant to Section 13996.55. This information shall also be considered in establishing the needs and priorities in the study developed and updated pursuant to Section 13996.5, and for any other uses as determined by the secretary.

(d) If the secretary establishes a California Office of Trade and Investment, pursuant to subdivision (d) of Section 13996.45, the staff of the office who are colocated in other positions within the agency shall scale their level of work on the activities related to paragraphs (4) to (16), inclusive, of subdivision (b), to the extent that funding is available to the agency for the purposes of the office.

SEC. 4.SEC. 3.

 Section 15570 of the Government Code is amended to read:

15570.
 (a) The secretary shall lead the preparation of a biennial California Economic Development Strategic Plan. In fulfilling this duty, the secretary shall do the following:
(1) Review the recommendations made by the California Economic Strategy Panel in their biennial economic development strategic plan document. This document shall make recommendations regarding an economic development strategic plan for the state, covering a two-year time period and containing a statement of economic goals for the state, a prioritized list identifying significant issues learned from economic development strategic plan panel meetings, proposals for legislation, regulations, and administrative reforms necessary to improve the business climate and economy of the state, evaluation of the effectiveness of the state’s economic development programs, a list of key industries in which the state shall focus its economic development efforts, and strategies to foster job growth and economic development covering all state agencies, offices, boards, and commissions that have economic development responsibilities.
(2) Convene a biennial economic strategy panel to provide recommendations regarding a California economic development strategic plan. This panel shall conduct meetings in Sacramento, all cities of the state with populations over 500,000, and in major cities of other regions of California as designated by the secretary. The secretary shall invite businesses, labor unions, organizations representing the interests of diverse ethnic and gender groups, local government leaders, academic economists and business professors, chambers of commerce and other business organizations, government agencies, and key industries to contribute to the preparation of the recommended economic strategy. These meetings shall address at least the following matters of concern:
(A) Strengths and weaknesses of the California economy and the state’s prospects for future economic prosperity.
(B) Emerging and declining industries in California and elsewhere.
(C) Effectiveness of California’s economic development programs in creating and retaining jobs and attracting industries.
(D) Adequacy of state and local physical and economic infrastructure.
(E) Government impediments to economic development.
(F) The development of a system of accountability for use in the annual State Budget process and in the legislative process to measure the performance of all state policies, programs, and tax expenditures intended to stimulate the economy. In developing a system of accountability, the panel shall, by using only existing resources and without future budget augmentation made for this purpose, do all of the following:
(i) Develop a standard definition of economic development.
(ii) Develop, for use in state law, standard measurements of real per capita income, job growth, new business creation, private sector investment, minority entrepreneurship, and income inequality.
(iii) Survey and evaluate efforts in other states to develop accountability measures for public investments in economic development.
(iv) Determine whether a return on investment calculation is feasible for public investments in economic development.
(v) Conduct a comparative study of various methodologies for preparing the economic development sections of a State Budget, including unified functional budget, zero-based budget, and performance-based budget methodologies.
(vi) Study the feasibility of statutory disclosure requirements on specified publicly funded subsidies to private sector businesses.
(vii) Submit a report of its findings and recommendations regarding this subparagraph to the Legislature no later than one year after its first meeting after January 1, 2005.
(b) (1) The panel shall be composed of the following 15 members:
(A) The Secretary of Labor and Workforce Development, who shall serve as chair of the panel.
(B) Eight persons appointed by the Governor.
(C) The Speaker of the Assembly or his or her designee.
(D) The President pro Tempore of the Senate or his or her designee.
(E) The Minority Leader of the Assembly or his or her designee.
(F) The Minority Leader of the Senate or his or her designee.
(G) One person appointed by the Speaker of the Assembly.
(H) One person appointed by the Senate Committee on Rules.
(2) If the secretary establishes a California Office of Trade and Investment, pursuant to subdivision (d) of Section 13996.45, the panel shall also include one person appointed by the secretary who represents the California Office of Trade and Investment.
(c) The panel shall be representative of state government, business, labor, finance, and academic institutions, and shall be broadly reflective of the state’s population as to gender, ethnicity, and geographic residence within California.
At least one-half of all the persons on the panel shall be from the private sector and at least two appointments shall be from private businesses with less than 50 employees. At least two appointments shall be from rural areas of the state. Beginning January 1, 2004, appointments to the panel shall be for four-year terms, except that the Governor’s appointments made pursuant to paragraph (2) of subdivision (b) shall be made as follows:
(1) Four members shall be appointed on January 1, 2004, and every four years thereafter.
(2) Four members shall be appointed on January 1, 2004, for a two-year term.
(3) Upon the expiration of the initial appointments made pursuant to paragraph (2), four members shall be appointed on January 1, 2006, and every four years thereafter.
(d) The secretary shall deliver copies of the economic strategy panel’s recommended California economic development strategic plan to every constitutional officer, legislator, member of the Governor’s Cabinet, members of the economic development strategic plan panel, and every state agency, office, board, and commission having economic development responsibilities.
(e) In each succeeding two-year cycle, the secretary shall undertake this process anew, so as to update the economic strategy on or before October 31 of each succeeding second year.

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Text—Pages 2, 3, 6, 7 and 8.
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