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AB-1715 International trade and investment offices.(2017-2018)

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Date Published: 08/29/2018 09:00 PM
AB1715:v94#DOCUMENT

Enrolled  August 29, 2018
Passed  IN  Senate  August 21, 2018
Passed  IN  Assembly  August 27, 2018
Amended  IN  Senate  August 17, 2018
Amended  IN  Assembly  January 11, 2018
Amended  IN  Assembly  January 04, 2018
Amended  IN  Assembly  April 24, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1715


Introduced by Assembly Members Quirk-Silva, Berman, Cervantes, Patterson, and Rodriguez
(Principal coauthor: Senator Portantino)

March 15, 2017


An act to amend Section 13997 of, and to add Section 13996.43 to, the Government Code, relating to economic development, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1715, Quirk-Silva. International trade and investment offices.
Existing law requires the Governor’s Office of Business and Economic Development (GO-Biz) to develop and implement an International Trade and Investment Program that serves specified purposes. Existing law authorizes the Director of GO-Biz to establish and terminate international trade and investment offices outside of the United States if certain conditions are met. Existing law also authorizes GO-Biz to designate a nonprofit entity to operate international trade and investment offices outside of the United States.
This bill would require the Director of GO-Biz to establish a process for accepting letters of interest from public and private entities that are interested in partnering with the state to operate an international trade and investment office in a foreign country. The bill would require the office to review the letters of interest and determine whether they are complete within 30 days of submittal. The bill would also require the director to make a determination, within 90 days of receipt of a complete letter of interest, as to whether to request a full proposal, as specified, for the operation of the office.
Existing law authorizes GO-Biz to accept nonstate moneys for the purposes of operating an international trade and investment office. Existing law requires private sector moneys for these purposes to be deposited in the Economic Development and Trade Promotion Account, which is continuously appropriated to the Director of GO-Biz for these purposes.
This bill would additionally authorize the moneys in the account to be used for the support of the operation of an international trade and investment office. By expanding the purposes of a continuously appropriated fund, this bill would make an appropriation.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California’s $2.6 trillion economy is supported by a diverse set of dominant and emerging industry sectors, many of which are recognized as global leaders in their field.
(b) With over 95 percent of the customer purchasing power located outside the United States, having a globally connected economy is essential for long-term economic growth.
(c) In 2016, exports from California were valued at $163.5 billion and represented 11.3 percent of total United States exports. California’s largest export market is Mexico, where the value of exports totaled $25.2 billion in 2016. After Mexico, California’s top export markets were: Canada ($16.2 billion); China ($14.3 billion); Japan ($11.7 billion); Hong Kong ($9.6 billion); South Korea ($8.2 billion); Taiwan ($6.9 billion); the Netherlands ($5.4 billion); the United Kingdom ($5.4 billion); and Germany ($5.3 billion).
(d) In 2015, 706,969 jobs were supported by goods exported from California, which represented 11 percent of all United States jobs supported by goods exported. In 2014, California had the highest number of small and medium-sized exporting companies at 72,591, followed by Florida with 58,404 exporting companies.
(e) In 2015, global foreign direct investment (FDI) reached $1.7 trillion, with the United States continuing to receive the largest amount of FDI in the world, totaling $384 billion (23 percent of global FDI). Japan, Canada, Switzerland, and the European Union contributed over 80 percent of FDI inflows to the United States.

SEC. 2.

 Section 13996.43 is added to the Government Code, to read:

13996.43.
 (a) The director shall establish a process for accepting letters of interest from public and private entities that are interested in partnering with the state in operating an international trade and investment office in a foreign country.
(b) The director shall identify and make publicly available the requirements for submitting information within the letter of interest, which shall include, at a minimum, all of the following:
(1) The proposed location of the international trade and investment office.
(2) A preliminary market analysis of the proposed location, including export and import opportunities that would benefit California businesses.
(3) A list of resources and services that could be made available to California businesses and potential California investors at this location.
(4) A description of how the activities of the international trade and investment office are aligned with the international trade and investment strategy developed pursuant to Section 13996.55.
(5) An outline of a proposed management structure, including a description of staffing levels and the positions needed to operate the international trade and investment office.
(6) A list of potential key stakeholder partnerships that will support the operations and activities of the international trade and investment office.
(7) Potential funding opportunities.
(8) A preliminary first and second year budget.
(c) The Governor’s Office of Business and Economic Development shall review the letters of interest and determine whether they are complete within 30 days of submittal. Interested parties may submit additional information following the initial submittal to ensure that the office is able to review a complete letter of interest.
(d) The Governor’s Office of Business and Economic Development may facilitate discussions between key stakeholder groups in order to support the development of a letter of interest and other trade and investment purposes consistent with this chapter.
(e) The director or his or her designee shall meet with each entity or group of entities that submits a complete letter of interest. The director may request additional information prior to, during, or following that meeting.
(f) (1) The director shall determine within 90 days of receipt of a complete letter of interest whether to request the entities that submitted the letter to provide a full proposal for the operation of an international trade and investment office. A full proposal shall include sufficient evidence of support for any claims and representations made within the letter of interest.
(2) After the Governor’s Office of Business and Economic Development receives a full proposal, the director shall determine whether to establish an international trade and investment office pursuant to Section 13996.42 in partnership with the entities that submitted the letter of interest and full proposal.
(g) A potential partner in the operation of an international trade and investment office may submit more than one letter of interest.

SEC. 3.

 Section 13997 of the Government Code is amended to read:

13997.
 (a) With respect to international trade and investment offices funded in whole or in part by nonstate funds pursuant to subdivision (e) of Section 13996.41, all of the following shall apply:
(1) The Governor’s Office of Business and Economic Development may accept nonstate moneys, including, but not limited to, federal and private sector funds, for the purposes of operating or supporting the operation of any international trade and investment office, subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). A donor shall not donate more than 25 percent of the annual budget of an international trade and investment office in a calendar year. The donor may specify the international trade and investment office for which the private sector moneys shall be used. The private sector moneys shall be deposited in the Economic Development and Trade Promotion Account, which is hereby established in the Special Deposit Fund (Article 2 (commencing with Section 16370) of Chapter 2 of Part 2 of Division 4) within the State Treasury. Notwithstanding Section 13340, the Director of the Governor’s Office of Business and Economic Development may expend moneys in the Economic Development and Trade Promotion Account, without regard to fiscal year, for the purposes of this subdivision. Moneys in the Economic Development and Trade Promotion Account may be allocated to an international trade and investment office, and if so allocated shall be maintained by that office in an account. Records of donations received and expenditures made pursuant to this section shall be subject to public disclosure.
(2) For each donation that it receives to fund an international trade and investment office, the Governor’s Office of Business and Economic Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain all of the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any.
(b) The Governor’s Office of Business and Economic Development may accept private moneys for the purposes of promoting international trade and investment events subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). The donor may specify the international trade and investment event for which the private sector moneys shall be used.
(1) The private sector moneys shall be deposited into the Economic Development and Trade Promotion Account. Notwithstanding Section 13340, the Director of the Governor’s Office of Business and Economic Development may expend moneys in the Economic Development and Trade Promotion Account without regard to fiscal year, for purposes of this subdivision. Records of donations received and expenditures made pursuant to this section shall be subject to public disclosure.
(2) For each donation that it receives to fund international trade and investment events, the Governor’s Office of Business and Economic Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any.
(c) With respect to international trade and investment offices operated under contract with a nonprofit entity pursuant to subdivision (f) of Section 13996.41:
(1) A donor shall not donate more than 25 percent of the annual budget of an international trade and investment office in a calendar year.
(2) For each donation that it receives to fund an international trade and investment office, the Governor’s Office of Business and Economic Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain all of the following information:
(A) The name and address of the donor.
(B) The amount of the donation.
(C) The date the donation was made.
(D) The name and address of the entity receiving or using the donation.
(E) A brief description of the goods or services provided or purchased, if any.
(F) A description of the specific purpose or event for which the donation was made, if any.
(d) Nothing in this section shall affect any requirement of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).