BILL NUMBER: AB 2012	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 23, 2012

   An act to amend Sections 13996.45, 13996.55, 13996.6, 13996.65,
13996.7, and 13996.75 of the Government Code, and to amend Section
71040 of the Public Resources Code, relating to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2012, as introduced, John A. Pérez. Economic development.
   (1) Existing law, the California Trade and Investment Act,
designates the Business, Transportation and Housing Agency as the
state agency primarily responsible for international trade and
investment activities in the state, subject to specified conditions.
The act authorizes the Secretary of Business, Transportation and
Housing to, in that capacity, carry out various powers and duties
related to encouraging international trade and investment in the
state, including, among others, developing an international trade and
investment policy and strategy for the state, and convening or
joining a statewide business partnership for international trade and
investment. The act also imposes various related restrictions on the
secretary's authority.
   This bill would instead require that the Governor's Office of
Business and Economic Development serve as the state agency primarily
responsible for international trade and investment activities in the
state, and, in that capacity, authorize that agency to carry out the
powers and duties described above.
   (2) Existing law requires a business or entity to obtain various
environmental permits prior to undertaking any project that may have
an impact on the environment.  Existing law also requires the
Secretary for Environmental Protection to establish an electronic
online permit assistance center for the purpose of assisting a
business or other entity with complying with certain laws and
regulations.
   This bill would instead require the Governor's Office of Business
and Economic Development to establish and maintain the electronic
online permit assistance center described above.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated 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   Governor's Office of Business and Economic
Development  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
  Director of the   Governor's Office of
Business and Economic Development  shall develop an
international trade and investment policy 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. 2.  Section 13996.55 of the Government Code is amended to
read:
   13996.55.  (a) The  Secretary of Business, Transportation
and Housing   Director of the Governor's Office of
Business and Economic Development  shall provide to the
Legislature, not later than February 1, 2008, a strategy for
international trade and investment that, at a minimum, includes all
of the following:
   (1) Policy goals, objectives, and recommendations necessary to
implement a comprehensive international trade and investment program
for the State of California. This information shall be provided in a
fashion that clearly indicates priority within the overall strategy.
   (2) Measurable outcomes and timelines for the goals, objectives,
and actions for the international trade and investment program.
   (3) Identification of impediments for achieving goals and
objectives.
   (4) Identification of key stakeholder partnerships that will be
used in implementing the strategy.
   (5) Identification of options for funding recommended actions.
   (6) Identification of an international trade and investment
organizational structure for the state administration of
international trade and investment policies, programs, and services.
   (b) In the course of developing the strategy, the 
secretary   director  shall also consult with other
agencies, boards, and commissions that have statutory
responsibilities related to workforce development, infrastructure,
business, and international trade and investment including, but not
limited to, the California Commission on Industrial Innovation, the
Office of the Small Business Advocate, the California Transportation
Commission, the California Community Colleges, the University of
California, the California State University, the Workforce Investment
Board, the Employment Training Panel, and the California Energy
Commission.
   (c) The strategy shall be submitted to the Chief Clerk of the
Assembly and the Secretary of the Senate. A copy of the strategy
shall be provided to the Speaker of the Assembly, the President pro
Tempore of the Senate, and the chairs of the Assembly Committee on
Jobs, Economic Development, and the Economy and the Senate Committee
on Business, Professions and Economic Development, or the successor
committees with jurisdiction over international trade and economic
development programs.
   (d) (1) The strategy shall be reviewed in at least one public
hearing by the relevant policy and fiscal committees of each house of
the Legislature. The hearings shall be held within 60 days of the
strategy being submitted to the Legislature. If the strategy is
submitted when the Legislature is in recess, the hearings shall occur
within 60 days of the members convening.
   (2) The legislative committees may make recommendations to the
 secretary   director  on the strategy, and
the  secretary   director  may modify the
strategy accordingly.
   (e) The  secretary   director  shall
report to the fiscal committees of the Legislature on or before
February 1, 2009, and by that date each year thereafter, on how the
Governor's proposed budget relates to the strategy.
   (f) The strategy shall be updated pursuant to the procedures of
this section at least once every five years.
  SEC. 3.  Section 13996.6 of the Government Code is amended to read:

   13996.6.  (a) The  Secretary of Business, Transportation
and Housing   Director of the Governor's Office of
Business and Economic Development  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
  director  on business needs and strategy
priorities as they relate to international trade and investment.
  SEC. 4.  Section 13996.65 of the Government Code is amended to
read:
   13996.65.  (a) (1) The  Secretary of Business,
Transportation and Housing   Director of the Governor's
Office of Business and Economic Development  is prohibited from
establishing any international trade and investment office unless the
following conditions are met:
   (A) The  secretary   director 
determines that, based on a review of the international trade and
investment policies and the recommendations and priorities
established in the international trade and investment strategy
developed pursuant to Section 13996.55, it is appropriate to consider
establishing international trade and investment offices.
   (B) The  secretary   director  prepares
a separate international trade and investment office strategy, that
meets the requirements and conditions of this section.
   (C) The international trade and investment office strategy
receives statutory authorization pursuant to the requirements and
conditions of this section.
   (D) The  secretary   director  submits a
business plan to the Legislature, that meets the requirements of
Section 13996.7.
   (2) This chapter does not apply to any international trade and
investment office established pursuant to Section 13997.1.
   (b) If the  secretary   director 
determines that opening international trade and investment offices is
in the best interest of the state, the  secretary 
 director  shall develop a strategy for selecting, opening,
and managing international trade and investment offices.
   (c) The international trade and investment office strategy shall
conform to at least all of the following requirements:
   (1) It shall be based on the needs and priorities of California's
businesses.
   (2) It shall be consistent with the resources and priorities of
the overall trade and investment strategy submitted to the
Legislature pursuant to Section 13996.55.
   (3) It shall define the program's goals, objectives, and timelines
for achieving quantifiable targets. Individual offices may have
separate missions or play different roles within the overall
international trade and investment office strategy. To the extent
that the proposed offices are expected to assist businesses in
opening new markets, these activities shall be targeted primarily to
small- and medium-sized businesses.
   (4) It shall outline the  Business, Transportation and
Housing Agency's   Governor's Office of Business and
Economic Development's  management and oversight
responsibilities, funding levels, and activities.
   (5) It shall outline how international trade and investment office
locations will be selected by the  secretary  
director  and approved by the Governor, including the general
geographic locations, number of offices, a process for determining
how long an office should remain operational, and duties undertaken
by the offices.
   (6) It shall define how the offices will be funded, including
funding for oversight and monitoring.
   (7) It shall consider how offices will be staffed, including
staffing levels and types of positions needed to operate the offices
proposed in the international trade and investment office strategy.
   (8) It shall provide a conflict-of-interest policy and gift
policy.
   (9) It shall provide for the appointment of a senior level
international trade and investment office manager as described in
subdivision (c) of Section 99106.
   (d) The international trade and investment office strategy shall
be submitted to the Chief Clerk of the Assembly and the Secretary of
the Senate. A copy of the strategy shall be provided to the Speaker
of the Assembly, the President pro Tempore of the Senate, and the
chairs of the Assembly Committee on Jobs, Economic Development, and
the Economy and the Senate Committee on Business, Professions and
Economic Development, or the successor committees with jurisdiction
over international trade and economic development programs.
   (e) (1) The international trade and investment office strategy
shall be reviewed in at least one public hearing by the relevant
policy and fiscal committees of each house of the Legislature. The
hearings shall be held within 60 days of the strategy being submitted
to the Legislature. If the strategy is submitted when the
Legislature is in recess, the hearings shall occur within 60 days of
the members convening.
   (2) The legislative committees may make recommendations to the
 secretary   director  on the strategy, and
the  secretary   director  may modify the
strategy accordingly.
   (f) The international trade and investment office strategy shall
be updated no less than every five years from the date that the first
strategy is submitted to the Chief Clerk of the Assembly and the
Secretary of the Senate.
   (g) The international trade and investment office strategy shall
be implemented only upon statutory authorization by the Legislature.
  SEC. 5.  Section 13996.7 of the Government Code is amended to read:

   13996.7.  (a) Except as specified in Section 13997.1,
international trade and investment offices are prohibited from being
established except under the conditions specified in the
international trade and investment office strategy described in
Section 13996.65. Except as specified in Section 13997.1, no office
may be established except as provided in this chapter.
   (b) In establishing offices pursuant to this section, the 
secretary   Director of the Governor's Office of
Business and Economic Development  shall submit to the
Legislature a business plan for each proposed office, which shall
include, but not be limited to, all of the following:
   (1) The mission of the office, goals, objectives, and timelines
for achieving quantifiable targets.
   (2) The level of staffing and staff expertise requirements needed
to successfully operate the office.
   (3) The proposed terms for the operation of the offices, including
the duration and oversight needed for office operations.
   (4) How the opening of the office relates to the international
trade and investment office strategy and the overall international
trade and investment strategy.
   (c) (1) The international trade and investment offices shall be
under the direction of a manager of international trade and
investment offices within the  agency   Governor'
s Office of Business and Economic Development  , to be
designated by the  secretary   director  .
The manager shall be an individual with experience in management and
oversight of public agencies or experience in international trade,
investments, or global business.
   (2) No international trade and investment office shall be opened
until the position of the manager of international trade and
investment offices is filled within the  agency 
 Governor's Office of Business and Economic Development  .
   (3) The position of the manager of the international trade and
investment offices shall be a state employee position funded and
staffed in a manner consistent with the international trade and
investment office strategy.
   (d) (1) Each office established pursuant to this chapter shall
submit a report to the  agency   Governor's
Office of Business and Economic Development  by December 1 of
each year on meeting its goals, objectives, and timelines as outlined
in its business plan.
   (2) The  secretary   director  shall
provide a summary of the reports to the relevant policy committees of
each house of the Legislature, as set forth in paragraph (2) of
subdivision (f), by the following February 1 of each year.
   (e) The  agency   Governor's Office of
Business and Economic Development  shall conduct an annual
performance review of each office for the first three years of the
office's operation. After this term, upon the determination of the
 secretary   director  , the performance
reviews may be undertaken at a longer interval, but not to exceed
five years. If the  secretary   director 
determines that an extended interval is appropriate for a particular
office, this shall be clearly indicated in the  secretary's
annual   director's  report to the Legislature on
the activities of the offices.
   (f) (1) The  secretary   director  shall
contract for an independent study of the operations and
effectiveness of the international trade and investment offices
established pursuant to this section at the conclusion of the first
two years of operation and at four year intervals after the initial
study.
   (2) The report on the results of the study shall be submitted to
the Chief Clerk of the Assembly and the Secretary of the Senate no
later than two years after the opening of the first office pursuant
to this chapter. A copy of the report shall be provided to the
Speaker of the Assembly, the President pro Tempore of the Senate, and
the chairs of the Assembly Committee on Jobs, Economic Development,
and the Economy and the Senate Committee on Business, Professions and
Economic Development, or the successor committees with jurisdiction
over international trade and economic development programs.
   (g) International trade and investment offices shall be funded
only according to the international trade and investment office
strategy authorized pursuant to subdivision (g) of Section 13996.65,
except as provided for in Section 13997.1. All nonstate sources of
funding shall be identified on the  agency  
Governor's Office of Business and Economic Development's Internet
 Web site by name and the amount contributed. The 
agency     Governor's Office of Business and
Economic Development  shall be responsible for all state
administrative and oversight costs. The  agency 
 Governor's Office of Business and Economic Development 
shall also be responsible for some portion of the costs of each
office, not to exceed one hundred thousand dollars ($100,000) per
office.
   (h) Consistent with the international trade and investment office
strategy, the  secretary   director  shall
make a determination by September 1 of each year that sufficient
funds have been appropriated in the annual Budget Act to meet its
oversight and management responsibilities related to the proper
operation of the offices. If, in the opinion of the 
secretary   director  , insufficient funding has
been provided, the  secretary   director 
shall notify the Joint Legislative Budget Committee and submit a
budget change proposal to request sufficient funding.
  SEC. 6.  Section 13996.75 of the Government Code is amended to
read:
   13996.75.  The Controller shall not allocate any state funds to
the  Business, Transportation and Housing Agency 
   Governor's Office of Business and Economic
Development  for international trade and investment activities
if any of the following conditions occur:
   (a) The strategy for international trade and investment has not
been submitted to the Legislature pursuant to subdivision (a) of
Section 13996.55 by May 1, 2008, or the strategy update required by
subdivision (f) of that section has not been completed within six
years of the completion of the original strategy or the most recent
update, as applicable.
   (b) The report to the fiscal committees of the Legislature
required by subdivision (e) of Section 13996.55 has not been
submitted by May 1 of the year in which it is due.
   (c) The summary required by paragraph (2) of subdivision (d) of
Section 13996.7 has not been submitted to the Legislature by May 1 of
the year in which it is due.
   (d) The determination required by subdivision (h) of Section
13996.7 has not been made by December 1 of the year in which it is
due.
  SEC. 7.  Section 71040 of the Public Resources Code is amended to
read:
   71040.  The  Secretary for Environmental Protection
    Governor's Office of Business and Economic
Development  shall establish an electronic online permit
assistance center through the Internet. The electronic online permit
assistance center shall be available for use by any business or other
entity subject to a law or regulation implemented by a board,
department, or office within the California Environmental Protection
Agency, and shall provide a business or other entity with assistance
in complying with those laws and regulations. The center, which shall
be called the "California Government-On Line to Desktops" or
"CALGOLD" program, shall provide special software, "hotlinks" and
other online resources and tools that may be used by a business or
other entity to streamline and expedite compliance with laws and
regulations implemented by a board, department, or office within the
California Environmental Protection Agency. The CALGOLD program
shall, to the extent feasible, incorporate permit assistance
activities of local and federal entities and of other entities of the
state into its operations.