BILL NUMBER: AB 625 CHAPTERED 09/30/02 CHAPTER 1125 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2002 APPROVED BY GOVERNOR SEPTEMBER 30, 2002 PASSED THE ASSEMBLY AUGUST 28, 2002 PASSED THE SENATE AUGUST 27, 2002 AMENDED IN SENATE AUGUST 22, 2002 AMENDED IN SENATE AUGUST 12, 2002 AMENDED IN SENATE AUGUST 5, 2002 AMENDED IN SENATE JUNE 28, 2002 AMENDED IN SENATE JUNE 13, 2002 AMENDED IN SENATE JUNE 6, 2002 AMENDED IN SENATE MAY 13, 2002 AMENDED IN ASSEMBLY JANUARY 18, 2002 AMENDED IN ASSEMBLY JANUARY 8, 2002 INTRODUCED BY Assembly Member Oropeza FEBRUARY 22, 2001 An act to add Section 15364.72 to, to add and repeal Section 15364.73 of, and to repeal Section 15364.725 of, the Government Code, relating to international trade and investment offices. LEGISLATIVE COUNSEL'S DIGEST AB 625, Oropeza. International trade and investment offices: proposals. (1) Existing law provides for the establishment of international trade and investment offices and the administration of those offices by the International Trade and Investment Division within the Technology, Trade, and Commerce Agency. This bill would require the proponent of any new international trade and investment office to submit a proposed business plan for the office, with specified information, to the agency. The bill would require the proponent of an international trade and investment office to submit a letter of intent to the agency 90 days prior to submitting the proposed business plan. It would require the agency, to the extent funds are available for that purpose, to evaluate the business plans, and submit reports on the evaluations that would be required to include specified information, to the Legislature. It would require that the agency's costs for evaluating each plan not exceed $10,000. This bill would prohibit the establishment of any international trade and investment office authorized by law on or after January 1, 2003, until after January 1, 2005, and as of January 1, 2005, this provision would be repealed. (2) AB 3000, if enacted, would add provisions to the Government Code that require each international trade and investment office to provide annually to the agency specified baseline information about the region served by that office and to prepare annual reports regarding its clients and changes in its baseline information. It would also require the agency to submit those annual reports to the Legislature. This bill would repeal these provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 15364.72 is added to the Government Code, to read: 15364.72. (a) The proponent of any new international trade and investment office shall submit a proposed business plan for the office to the Technology, Trade, and Commerce Agency. Ninety days prior to submitting the proposed business plan, the proponent of an international trade and investment office shall submit a letter of intent to the Technology, Trade, and Commerce Agency. The business plan shall contain all of the following: (1) The delineated geographical area to be served by the office, to be defined as the "region" to be served by the office. (2) Actual and potential investment and tourism directed to the state from the region. (3) Actual and potential export markets in the region for goods produced in the state, and type of goods categorized according to sector. (4) Leading industries in the region. (5) Existing federal trade offices, and municipal trade offices from California operating in the region that provide investment, tourism, and export promotion activities for the state. (6) Other states that have trade offices, or that have investment, tourism, or export promotion offices in the region. (7) A cost-benefit analysis, including return-on-investment projections and assumptions on which the analysis is based. (8) Target export industry markets. (9) State objectives, goals, and estimated outcome performance. (10) A proposed detailed budget, including one-time and ongoing costs, and proposed staffing for the international trade and investment office. (11) A statistical profile of the proposed location of the international trade and investment office that compares the data with comparable locations as provided by the Technology, Trade, and Commerce Agency. The statistical profile of the location shall include all of the following: (A) California exports to the region for the previous calendar year. (B) Whether the region ranks within the first quartile of those nations that consume California exports. (C) Gross domestic product. (D) Per capita gross domestic product. (E) Average inflation for the previous five years. (F) Unemployment rate for the previous five years. (G) Current Human Development Index ranking as published by the United Nations Human Development Program. (H) A list of the industry sectors that the country has in common with California, that supply materials to California companies, or that consume California-made materials for manufacturing. (b) To the extent that funds are appropriated for these purposes in the Budget Act, or upon appropriation, the agency shall evaluate all proposed business plans that have been submitted to the agency pursuant to subdivision (a) during the 12-month period ending on July 1 of any given year. No later than January 15 of the following year, the agency shall submit those evaluations to the Legislature. The evaluation reports shall include a breakdown of the agency's costs for completion of the evaluation, which shall not exceed ten thousand dollars ($10,000) per plan evaluated. (c) To the extent that the agency is not funded to perform the evaluation of the proposed business plans described in subdivision (b), proponents may pay the cost of the evaluation, provided that proponents pay sufficient funds to cover all of the agency's costs. The agency shall determine the level of funding necessary to cover all of the agency's costs associated with evaluating the proposed business plan. (d) The agency may issue clarifying instructions that meet the requirements of this section, including specifying the sources of data to be used, citation requirements, and the form of submitting the proposed business plans. Provided that the agency develops instructions, the proponent shall adhere to the instructions provided by the agency. SEC. 2. Section 15364.725 of the Government Code, as added by Assembly Bill 3000 of the 2001-02 Regular Session, is repealed. SEC. 3. Section 15364.73 is added to the Government Code, to read: 15364.73. (a) Notwithstanding any other provision of law, no international trade and investment office authorized by law on or after January 1, 2003, shall be established until after January 1, 2005. (b) This section shall not apply to a trade office authorized pursuant to Section 15364.80, as added by Senate Bill 1657 of the 2001-02 Regular Session of the Legislature. (c) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. SEC. 4. Section 2 shall become operative only if Assembly Bill 3000 is enacted during the 2001-02 Regular Session and adds Section 15364.725 to the Government Code.