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SB-460 International trade marketing and promotion.(2011-2012)

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Amended  IN  Assembly  July 13, 2011
Amended  IN  Senate  May 31, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Senate Bill
No. 460

Introduced  by  Senator Price
 (Coauthor(s): Senator Lieu)

February 16, 2011

An act to amend Sections 13996.4, 13996.45, and 13996.6 of the Government Code, relating to international trade.


LEGISLATIVE COUNSEL'S DIGEST


SB 460, as amended, Price. International trade marketing and promotion.
Existing law authorizes the Business, Transportation and Housing Agency to, among other duties, engage in trade and foreign investment activities.
This bill would additionally authorize the agency to coordinate international trade marketing and promotion activities.
Existing law authorizes the secretary to convene a statewide business partnership for international trade and investment, to advise the secretary on business needs and priorities in that regard.
This bill would also authorize the secretary to convene a statewide business partnership for international trade marketing and promotion no later than March 1, 2012, to advise the secretary on what role the state should play in international trade marketing and promotion.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 13996.4 of the Government Code is amended to read:

13996.4.
 The Legislature finds and declares all of the following:
(a) The statutory authority for the Technology, Trade, and Commerce Agency, including the agency’s international trade and investment promotion programs, was repealed by Chapter 229 of the Statutes of 2003, thereby reducing the capacity of state government to assist California firms in developing global business opportunities.
(b) The repeal of the statutory authority for the Technology, Trade, and Commerce Agency has increased the importance of strengthening collaborative linkages among remaining California-based international trade and investment promotion programs operated at federal, state, regional, and local levels. These programs include, but are not limited to, the Centers for International Trade Development operated by the California Community Colleges, 15 offices of the United States Commercial Service within the United States Department of Commerce, numerous local and regional World Trade Centers, and public and private economic development and trade associations.
(c) According to data for 2000, international trade and investment activity in the state supports one in every seven California jobs.
(d) According to the Public Policy Institute of California:
(1) Nearly 94 percent of all exporters located in California are small- or medium-sized firms. Over 90 percent of businesses in California are small businesses and over 50 percent of all workers are employed by a small business.
(2) Exporters are more productive and pay higher wages than nonexporters.
(3) Effective state programs supporting export opportunities should identify and respond to differing needs of both export-willing and export-ready firms.
(e) The adequacy of the state’s infrastructure, workforce, research facilities, manufacturing and service industries, and access to capital form the foundation of California’s global market-related economy.
(f) California’s multicultural and ethnic populations offer unique opportunities for international trade and investment.
(g) United States subsidiaries of foreign companies in California employed 561,000 California workers from 2000 to 2005. This is an increase of 15 percent. In comparison to other states, California is an attractive location for international employers, ranking first in the United States in the number of employees supported by United States subsidiaries.
(h) International trade, which accounts for nearly 25 percent of the state’s economy, relies on airports, land ports of entry, and the largest seaport facilities in the United States to maintain California’s status as a major gateway for products entering and leaving the United States. This includes many goods moving through California ports, such as industrial and postconsumer secondary materials, originated in or destined for other states.
(i) According to the California Marine and Intermodal Transportation System Advisory Council, more than 40 percent of the total containerized cargo entering the United States arrived at California ports, and almost 30 percent of the nation’s exports flowed through ports in The Golden State. Port activities employ more than 500,000 people in California and generate an estimated seven billion dollars ($7,000,000,000) in state and local taxes annually. Nationwide, more than two million jobs are linked to California’s public ports.
(j) California’s trade and investment policy is a living document that should be regularly updated to reflect emerging business trends and the changing needs of California businesses and workers.

SEC. 2.

 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.
(E) Coordinate international trade marketing and promotion strategies.
(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) 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. 3.Section 13996.6 of the Government Code is amended to read:
13996.6.

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

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

(3)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.

(b)(1)The Secretary of Business, Transportation and Housing shall convene a statewide business partnership for international trade marketing and promotion no later than March 1, 2012.

(2)The business partnership shall include, but is not limited to, representatives of public airports, land ports of entry, and seaports, ocean carriers, marine terminal operators, air carriers, warehouse operators, railroads, trucking companies, foreign trade zones, and shippers, specifically including agricultural exporters, manufacturers, postconsumer secondary material handlers, and retailers.

(3)The business partnership shall advise the secretary on what role the state should play in international trade marketing and promotion in the context of growing the utilization of California’s airport, seaport, and land ports of entry infrastructure by importers and exporters, and to increase the opportunity for growth and trade activity.

SEC. 3.

 Section 13996.6 of the Government Code, as amended by Section 10 of Chapter 31 of the Statutes of 2011, is amended to read:

13996.6.
 (a) (1) 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)

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

(c)

(3) The business partnership shall advise the secretary on business needs and strategy priorities as they relate to international trade and investment.
(b) (1) The Secretary of Business, Transportation and Housing shall convene a statewide business partnership for international trade marketing and promotion no later than March 1, 2012.
(2) The business partnership shall include, but is not limited to, representatives of public airports, land ports of entry, and seaports, ocean carriers, marine terminal operators, air carriers, warehouse operators, railroads, trucking companies, foreign trade zones, and shippers, specifically including agricultural exporters, manufacturers, postconsumer secondary material handlers, and retailers.
(3) The business partnership shall advise the secretary on what role the state should play in international trade marketing and promotion in the context of growing the utilization of California’s airport, seaport, and land ports of entry infrastructure by importers and exporters, and to increase the opportunity for growth and trade activity.