BILL NUMBER: SB 1657 CHAPTERED 09/25/02 CHAPTER 863 FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2002 APPROVED BY GOVERNOR SEPTEMBER 25, 2002 PASSED THE SENATE AUGUST 30, 2002 PASSED THE ASSEMBLY AUGUST 27, 2002 AMENDED IN ASSEMBLY AUGUST 25, 2002 AMENDED IN ASSEMBLY AUGUST 23, 2002 AMENDED IN ASSEMBLY JUNE 28, 2002 AMENDED IN SENATE APRIL 1, 2002 INTRODUCED BY Senator Scott (Principal coauthor: Assembly Member Frommer) (Coauthors: Senators Johannessen, Machado, Margett, Monteith, Poochigian, and Speier) FEBRUARY 21, 2002 An act to amend the heading of Chapter 1.7 (commencing with Section 15364.71) of Part 6.7 of Division 3 of Title 2 of, to add and repeal Section 15364.80 of, and to repeal the heading of Chapter 1.8 (commencing with Section 15364.80) of Part 6.7 of Division 3 of Title 2 of, the Government Code, relating to international trade. LEGISLATIVE COUNSEL'S DIGEST SB 1657, Scott. International trade and investment office: Republic of Armenia. Existing law provides for the administration of international trade and investment offices by the International Trade and Investment Division of the Technology, Trade, and Commerce Agency. The secretary of the agency is authorized to accept private donations for the operation of these offices, among other purposes, and these donations are to be deposited in the Economic Development and Trade Promotion Account, as specified. This bill would require the Governor to instruct the Secretary of Technology, Trade, and Commerce to establish, on a contract basis, an international trade and investment office in Yerevan, in the Republic of Armenia. It would require the secretary to report to the Legislature on the success of the international trade and investment office no later than March 1, 2005. It would specify that its provisions shall be implemented only to the extent that funds are available to the agency for purposes of the bill from any source. The bill would require that private donations specified for the operation of this office be deposited in a separate subaccount within the Economic Development and Trade Promotion Account and be used only for that purpose. These provisions would be repealed as of January 1, 2006. This bill would make various technical, conforming changes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) California has established international trade and investment offices charged with developing the state's exports and promoting job-creating industry investment in the state. (b) While the State of California has international trade and investment offices in most of the industrialized world, including Western Europe, Eastern Asia, and Latin America, it does not have a significant presence in many of the developing regions of the world, including Eastern Europe and Western and Central Asia. (c) It is important for California to build linkages in developing regions in order to facilitate trade and commerce with Eastern Europe and Western Asia. (d) Armenia is a small, but strategically important, country located at a crossroads of Europe and Asia, along the ancient Silk Road. (e) The United States has sent a substantial amount of aid to Armenia and is currently actively engaged in encouraging and developing manufacturing and trade relations. (f) Over 120 countries have recognized Armenia as an independent state and over 70 countries have established direct diplomatic relations with Armenia. Armenia is also a member of the United Nations and the Organization for Security and Cooperation in Europe, formerly the Conference on Security and Cooperation in Europe. (g) Therefore, it is the intent of the Legislature in enacting this act to provide for the establishment of an international trade and investment office in the Republic of Armenia to promote mutually beneficial trade relations on a pilot basis with developing areas of the world that show emerging market potential. SEC. 2. The heading of Chapter 1.7 (commencing with Section 15364.71) of Part 6.7 of Division 3 of Title 2 of the Government Code is amended to read: CHAPTER 1.7. INTERNATIONAL TRADE AND INVESTMENT OFFICES SEC. 3. The heading of Chapter 1.8 (commencing with Section 15364.80) of Part 6.7 of Division 3 of Title 2 of the Government Code is repealed. SEC. 4. Section 15364.80 is added to the Government Code, to read: 15364.80. (a) The Governor shall instruct the Secretary of Technology, Trade, and Commerce to establish, on a contract basis, an international trade and investment office in Yerevan, in the Republic of Armenia, to serve the region of Eastern Europe and Western Asia. (b) The secretary shall report to the Legislature on the success of the international trade and investment office in Yerevan no later than March 1, 2005. The report shall include, but not be limited to, all of the following: (1) The level of investment and tourism directed to California as a direct result of the international trade and investment office. (2) The level of imports sent to California as a direct result of the international trade and investment office. (3) The level of California exports sent to the region of Eastern Europe and Western Asia as a direct result of the international trade and investment office. (4) A cost-benefit analysis of the international trade and investment office. (5) An analysis of the costs and outcomes of the international trade and investment office compared with those of the other international trade and investment offices. (c) This section shall be implemented only to the extent that funds are available to the Technology, Trade, and Commerce Agency for this purpose from any source, including, but not limited to, federal funding and private donations authorized pursuant to Section 15364.79. Private donations made pursuant to Section 15364.79 and specified for the international trade and investment office in Yerevan shall be deposited in a separate subaccount within the Economic Development and Trade Promotion Account and may be used only for the operation of this office. (d) This section shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2006, deletes or extends that date.