BILL NUMBER: AB 180 CHAPTERED 09/29/99 CHAPTER 565 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 1999 APPROVED BY GOVERNOR SEPTEMBER 28, 1999 PASSED THE ASSEMBLY SEPTEMBER 3, 1999 PASSED THE SENATE SEPTEMBER 2, 1999 AMENDED IN SENATE AUGUST 31, 1999 AMENDED IN SENATE AUGUST 18, 1999 AMENDED IN SENATE AUGUST 16, 1999 AMENDED IN SENATE JUNE 24, 1999 AMENDED IN ASSEMBLY MAY 28, 1999 AMENDED IN ASSEMBLY APRIL 28, 1999 AMENDED IN ASSEMBLY APRIL 6, 1999 INTRODUCED BY Assembly Member Havice JANUARY 19, 1999 An act to add Chapter 1.11 (commencing with Section 15365.40) to Part 6.7 of Division 3 of Title 2 of the Government Code, relating to trade and commerce. LEGISLATIVE COUNSEL'S DIGEST AB 180, Havice. International trade: public-private trade development organizations. Existing law provides that the Trade and Commerce Agency shall be the principal state agency to, among other things, respond to inquiries and provide statistics on the economy, visitor attractions, and international trade. This bill would, to the extent funds are made available for this purpose, require the agency to work to develop a statewide alliance of public-private trade development organizations, if determined to be feasible by the agency. The organizations would be authorized to undertake specified tasks in the development of trade opportunities in the state, under the leadership of the agency. The bill would authorize the agency to adopt regulations concerning implementation of these provisions. The bill would also require the Secretary of Trade and Commerce to report to the Governor and the Legislature on the implementation of these provisions no later than December 31, 2001. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 1.11 (commencing with Section 15365.40) is added to Part 6.7 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 1.11. PUBLIC-PRIVATE TRADE DEVELOPMENT ORGANIZATIONS 15365.40. The Legislature finds and declares as follows: (a) Aggressive efforts to broaden the exportation of California-based goods and services are a key to sustaining the state' s economy in the face of aggressive competition from government-funded programs of other states and countries. (b) Public-private trade development organizations such as the CalTrade Coalition, Centers for International Trade Development, Regional Technology Alliances, and the Export Managers' Association of California, are effective at expanding California exports with support of the federal government, local governments, and the private sector. It is in the state's interest to use these organizations as cost-effective local delivery mechanisms of California trade services, especially to small- and medium-size businesses. (c) It is therefore the intent of the Legislature to accomplish the following goals by developing and using a statewide alliance of public-private trade development organizations, as defined in subdivision (c) of Section 15365.41: (1) Leverage available federal, local, public, and private investments in the organizations. (2) Provide better local outreach and more "one-stop" delivery of export services to California businesses from entities, including, but not limited to, all of the following: (A) State agencies, including, but not limited to, California overseas trade offices and other Trade and Commerce Agency programs, the Department of Food and Agriculture, California Community College EDNet Centers for International Trade Development, and the State Energy Resources Conservation and Development Commission. (B) The private sector, including for-profit businesses and nonprofit organizations, such as regional alliances, partnerships, and economic development corporations. (C) Federal government programs, including the United States Department of Commerce Commercial Service, the Export-Import Bank of the United States, the United States Department of Agriculture Foreign Agricultural Service, and other pertinent agencies. (D) Local government, including, but not limited to, ports and airports. (E) Other local community-based organizations committed to international trade development, such as chambers of commerce, as well as city, county, and regional economic development organizations, including members of the California Association of Local Economic Development, and any other appropriate organizations. (3) Leverage investments in electronic resources that provide an information clearinghouse with tutorials and a data base of federal, state, and local international trade information. (4) Support the Trade and Commerce Agency's development of an international trade strategy that addresses public-private partnerships, a federal-state-local division of labor, and local delivery of trade services. 15365.41. For the purposes of this chapter, the following definitions apply: (a) "Agency" means the Trade and Commerce Agency. (b) "Private sector" means private for-profit or nonprofit entities. (c) "Public-private trade development organizations" means one or more organizations designated by the Trade and Commerce Agency that uses public and private resources to measurably increase California exports by providing coordinated services on a one-stop basis. (d) "Public sector" means any branch or agency of the federal, state, or local government. (e) "Statewide" means the ability to serve businesses and involve local stakeholders in a coordinated fashion in at least the majority of the Metropolitan Statistical Areas of California that evidence strong export potential, as demonstrated by appearing on the Exporter Location Series prepared by the United States Office of Trade and Economic Analysis. 15365.42. The agency shall work to develop a statewide alliance of public-private trade development organizations, as defined in subdivisions (c) and (e) of Section 15365.41, if determined to be feasible by the agency. The organizations may undertake all of the following tasks, under the leadership of the agency: (a) Work with existing regional trade and development alliances and organizations to develop an appropriate structure, and to designate organizations that demonstrate the ability to meet criteria such as the following: (1) Receipt of federal and local funding for export development. (2) Documented results of a direct working partnership with entities specified in subparagraphs (A) to (E), inclusive, of paragraph (2) of subdivision (c) of Section 15365.40. Documented results include, but are not limited to, new export sales by California businesses. (3) A common system of performance measurement, client tracking, and statewide coordination based on export results. (4) Local community contribution on a regular basis. (b) Specify services that designated organizations are expected to carry out, including, but not limited to, the following activities within the intent specified in Section 15365.40: (1) Operate local public-private service centers. (2) Identify businesses and assess their preparedness for specific services. (3) Provide customized services to help businesses utilize and maximize the results of state trade programs. (4) Operate an electronic trade information system. (5) Operate a client tracking system, allowing trade service providers to coordinate service delivery to businesses. (6) Organize regular collaborative meetings of trade service providers to improve statewide service delivery. (7) Raise funds from multiple public and private sources to leverage state funding, as may become available for the services of an organization. (c) Designate other qualified organizations as participants. (d) Review and adjust participation criteria, structure, or performance measures. (e) Enter into contracts, as deemed appropriate by the agency and as funding is available, to implement this chapter. (f) Determine a budget needed to implement fully a statewide public-private trade development alliance. 15365.43. (a) The agency may develop an appropriate, ongoing performance reporting system for the organizations, including, but not limited to, the goals expressed in subdivision (c) of Section 15365.40, the activities specified in subdivision (b) of Section 15365.42, and any other data, information, or survey results deemed appropriate by the agency. (b) The agency may establish appropriate criteria to ensure that organizations are cost effective and efficient. (c) Performance requirements specified in Section 15365.42 shall apply only to organizations that receive funding from the agency and shall not apply to other organizations. 15365.44. (a) The Trade and Commerce Agency may adopt regulations concerning the implementation of this chapter as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. The adoption of these regulations is an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare within the meaning of subdivision (b) of Section 11346.1. Notwithstanding subdivision (e) of Section 11346.1, the regulations shall not remain in effect for more than 360 days unless the agency complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2, as required by subdivision (e) of Section 11346.1. (b) The agency shall take all steps it deems appropriate and feasible to carry out the intent of this chapter in a timely manner. 15365.45. Notwithstanding Section 7550.5, the Secretary of Trade and Commerce shall report to the Governor and the Legislature on the implementation of this chapter no later than December 31, 2001. The report may be included in the annual report to the Governor and the Legislature required pursuant to subdivision (c) of Section 15363.6. 15365.46. This chapter shall only be implemented to the extent that funds are made available for that purpose.