BILL NUMBER: AB 1137 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2011
INTRODUCED BY Assembly Member V. Manuel Pérez
FEBRUARY 18, 2011
An act to amend Section Sections
6300 , 13996.45, and 13996.6 of, to add Chapter 4.2
(commencing with Section 6315) and Chapter 4.3 (commencing with
Section 6317) to Division 7 of Title 1 of, the Government Code,
relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 1137, as amended, V. Manuel Pérez. Economic development:
foreign trade.
Existing law authorizes any public corporation, as defined, and
specified private corporations to apply for the privilege of
establishing, operating, and maintaining a foreign-trade zone in
accordance with specified provisions of federal law, and authorizes
any public or private corporation whose application is granted
pursuant to those provisions of federal law to establish, operate,
and maintain the foreign trade zone, subject to specified conditions
and restrictions.
This bill would require these provisions of existing law to be
known, and would authorize them to be cited as, the California
Foreign Free Trade Zone Act.
This bill would establish the California Foreign Investment
Program, require the Secretary of Business, Transportation and
Housing to serve as the lead state entity under specified provisions
of the federal Immigration and Nationality Act, and require the
secretary to set the terms and conditions for issuing a state
designation letter within the structure and scope of those provisions
of federal law.
This bill would also establish the California Export
Promotion and Gap Financing Program, and authorize the
secretary to apply for and receive federal funding for the
implementation of a state and federal export financing program. The
bill would require the secretary, upon receipt of moneys pursuant to
that application, to implement a program that meets specified
conditions. The bill would require the secretary to report on the
program, as specified, and to annually post on the agency's Internet
Web site a summary of the programs, annual activities, and key
achievements, and a summary of the information related to the
requirements of the program. The bill would authorize the secretary
to adopt regulations to implement the program, as specified.
Existing law requires the Secretary of Business, Transportation
and Housing to prepare a study on the potential role of the state in
global markets. Existing law requires the secretary to utilize that
study to develop a strategy for international trade and investment.
Existing law requires the secretary to develop a statewide business
partnership for international trade and investment. Existing law
states that California's international trade and investment policy is
directed through its state strategy.
This bill would require California's trade and investment policy
to be implemented pursuant to the strategy developed by the
secretary.
This bill would require the secretary to consult with local and
regional governmental entities and associations. This bill would
authorize the secretary, as a part of the consultation process, to
create an advisory board comprised of representatives from certain
entities to provide the secretary on advice on the content of the
study, and of the strategy that the secretary is developing. This
bill would require the secretary as a part of the consultation to
discuss certain issues related to trade and investment. This bill
would provide that this consultation may be conducted within the
existing business partnership framework or separately, or both.
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 6300 of the Government Code is amended to read:
6300. (a) This chapter shall be known and may be cited as the
California Foreign Free Trade Zone Act.
(b) As used in this chapter, "public corporation" means the state,
any political subdivision thereof, any incorporated municipality
therein, any public agency of the state, of any political subdivision
thereof, or of any municipality therein, or any corporate municipal
instrumentality of this state or of this state and one or more other
states.
SEC. 2. Chapter 4.2 (commencing with Section 6315) is added to
Division 7 of Title 1 of the Government Code, to read:
CHAPTER 4.2. CALIFORNIA FOREIGN INVESTMENT PROGRAM
6315. (a) This chapter shall be known and may be cited as the
California Foreign Investment Program.
(b) (1) As used in this chapter, "public corporation" means the
state, any political subdivision thereof, any incorporated
municipality therein, any public agency of the state, of any
political subdivision thereof, or of any municipality therein, or any
corporate municipal instrumentality of this state or of this state
and one or more other states.
(2) As used in this chapter, "Immigration and Nationality Act"
means Section 203(b)(5) of the Immigration and Nationality Act (8
U.S.C. Sec. 1153(b)(5)).
6315.1. (a) The Secretary of Business, Transportation and Housing
shall serve as the lead state entity under the Immigration and
Nationality Act. The secretary shall set the terms and conditions for
issuing a state designation letter within the structure and scope of
the Immigration and Nationality Act.
(b) Any public or private corporation may apply for the privilege
of establishing, operating, and maintaining a regional center in
accordance with the Immigration and Nationality Act.
(c) (1) Any application for designation as a
regional center shall be accompanied by a letter of support from the
secretary attesting to the legal status of the applicant and that
the applicant has agreed to the reporting and monitoring terms of the
Business, Transportation and Housing Agency.
(2) The secretary shall establish reporting and monitoring
requirements, consistent with federal and state requirements, that,
as a minimum, do the following: identify the number of businesses
assisted, the size of those businesses by number of employees and
gross revenues, and the number of jobs created and retained.
(d) The secretary shall not sign any designation letter without
the applicant first entering into an agreement with the agency to
meet the agency's reporting and monitoring requirements.
(e) The secretary shall post on the agency's Internet Web site a
list with contact information for each regional center applicant that
receives a designation letter from the secretary.
6315.2. (a) Any public or private corporation authorized by this
chapter to apply to establish, operate, and maintain a regional
center whose application is granted pursuant to the terms of the
Immigration and Nationality Act may establish, operate, and maintain
the regional center subject to the conditions and restrictions of the
Immigration and Nationality Act, and any amendments thereto, and any
conditions and restrictions established by the secretary pursuant to
this chapter.
(b) If authorized to establish, operate, and maintain a regional
center, a public corporation may, in addition to its other powers, do
either of the following:
(1) Provide for indemnity or assurance to the federal government
or its agencies as they may request.
(2) Deposit moneys with the federal government, as the federal
government or its agencies may request, provided those moneys are
available by direct appropriation or otherwise.
SEC. 3. Chapter 4.3 (commencing with Section 6317) is added to
Division 7 of Title 1 of the Government Code, to read:
CHAPTER 4.3. CALIFORNIA EXPORT PROMOTION AND GAP
FINANCING PROGRAM
6317. This chapter shall be known and may be cited as the
California Export Promotion and Gap Financing Program.
6317.1. (a) The Secretary of Business, Transportation and Housing
may apply for and receive federal funding for the implementation of
a state and federal promotion or export financing program.
Upon receipt of any moneys pursuant to this application, the
secretary shall cause to be implemented a program that meets the
conditions of the federal program and all of the following
conditions:
(1) Development of the program shall include local governments,
economic development organizations, trade organizations, financial
institutions, small business organizations, the federal Small
Business Administration, the federal Rural Development initiatives
administered by the United States Department of Agriculture, and
financial and community intermediaries that are engaged or could be
engaged in trade development.
(2) Among other elements, the program shall also include all of
the following:
(A) A clear statement of the program's objectives.
(B) A method for establishing a baseline and measurement of
whether the objective was achieved on an annual basis.
(C) Reporting requirements for assisted businesses consistent with
the program's objectives.
(D) An identification of related state
federal, state, and local programs that would add value to the
overall program if implemented in a collaborative fashion.
(E) A method for ensuring program resources are available to all
areas of the state.
(F) An identification of how the program helps to implement the
state's international trade and foreign investment strategy, adopted
pursuant to Section 13996.55.
(3) In reporting on the program, the secretary shall address, but
not be limited to, the number of businesses assisted, the size of
those businesses by number of employees and gross revenues, the
number of jobs created and retained, and an estimate of the economic
impact of the financial assistance.
(b) The secretary shall annually , in any year that the
program is active, post on the Business, Transportation and
Housing Agency's Internet Web site a summary of the programs, annual
activities, and key achievements, and a summary of the information
related to the requirements of subdivision (a).
(c) The secretary shall, during any year that the program is
active, consult with, on a regular and frequent basis, county and
city governments, particularly those that have foreign trade offices,
in developing or participating in trade missions or promotional
efforts established by counties, cities, or special districts.
(c)
(d) If the federal requirements prohibit any of the
requirements of this act, the secretary shall notify the relevant
policy and fiscal committees of the Legislature about the federal
programmatic limitation. The secretary may waive any of the
requirements of paragraph (2) of subdivision (a) if the secretary
determines doing so is necessary to fulfill federal requirements for
the implementation of the export financing program.
(d)
(e) The secretary may adopt regulations to implement
the provisions of this chapter. The secretary may adopt emergency
regulations to implement the provisions of this chapter if necessary
to meet the time lines established by the federal government.
SEC. 4. 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
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 shall
develop an international trade and investment policy, which shall be
consistent with the economic development strategic plan prepared by
the California Economic Strategy Panel pursuant to Section 15570, 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 implemented through
its state strategy the strategy developed
pursuant to Section 13996.55 , 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. 5. Section 13996.6 of the
Government Code is amended to read:
13996.6. (a) The Legislature finds and declares that the
quality and effectiveness of the state's international trade and
foreign investment programs and activities are highly dependent on
establishing and maintaining an open dialogue with a broad range of
trade-related stakeholders including, but not limited to, businesses,
trade and business assistance programs, worker organizations,
education and workforce training entities, and local governments.
(a)
(b) The Secretary of Business, Transportation and
Housing shall convene a statewide business partnership for
international trade and investment no later than March 1, 2007.
(b)
(1) The business partnership shall include
representatives from small, medium, and large businesses and
industries, as well as nongovernmental organizations and government
representatives.
(c)
(2) The business partnership shall advise the secretary
on business needs and strategy priorities as they relate to
international trade and investment. This information shall be used in
establishing the needs and priorities in the plan developed pursuant
to Section 13996.5 and the strategy developed pursuant to Section
13996.55, and for any other uses as determined by the secretary.
(c) (1) The secretary shall consult with local and regional
government entities and associations, particularly those entities and
organizations that have foreign trade economic development offices,
or develop or regularly participate in trade missions and other
promotional efforts.
(2) As part of the consultation process, the secretary may
establish an advisory board comprised of representatives from
counties, cities, and special districts for the purpose of providing
advice on the content of the plan developed pursuant to Section
13996.5, and the strategy developed pursuant to Section 13996.55.
(3) Key issues to be discussed include, but are not limited to,
how the state and local entities can work collaboratively on issues
including, but not limited to, target nations or industries for
exports, foreign district investment, and integration of the EB 5
visa program. Participation on the advisory committee would be
without compensation for time or travel.
(4) Consultation with local and regional governments may be
conducted within the business partnership framework separately, or
both.