BILL NUMBER: AB 1137 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 6, 2012
AMENDED IN SENATE JUNE 22, 2011
AMENDED IN ASSEMBLY APRIL 26, 2011
INTRODUCED BY Assembly Member V. Manuel Pérez
FEBRUARY 18, 2011
An act to amend Sections 6300, 13996.45, and 13996.6 of,
and to add Section 12096.25 to, to add Chapter
4.2 (commencing with Section 6315) and Chapter 4.3 (commencing with
Section 6317) to Division 7 of Title 1 of, and to repeal Section
13997 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.
Existing law establishes in state government the Governor's Office
of Business and Economic Development. The office is under the direct
control of the Director of the Governor's Office of Business and
Economic Development.
This bill would establish the California Foreign Investment
Program, require the Secretary of Business, Transportation
and Housing Governor's Office of Business and Economic
Development to serve as the lead state entity under specified
provisions of the federal Immigration and Nationality Act, and
require the secretary Director of the
Governor's Office of Business and Economic Development
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
director to apply for and receive federal
funding for the implementation of a state and federal export
financing program. The bill would require the secretary
director , upon receipt of moneys pursuant to
that application, to implement a program that meets specified
conditions. The bill would require the secretary
director to report on the program, as specified, and to
annually post on the agency's office'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 director 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 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, authorizes that agency to carry out
the powers and duties described above.
This bill would require California's trade and investment policy
to be implemented pursuant to the a
strategy developed by the secretary director
.
This bill would require the secretary
director to consult with local and regional governmental
entities and associations. This The
bill would authorize the secretary director
, as a part of the consultation process, to create an advisory
board comprised of representatives from certain entities to provide
the secretary on director with advice
on the content of the study, and of on
the strategy that the secretary director
is developing. This The bill
would require the secretary director as
a part of the consultation to discuss certain issues related to
trade and investment. This The bill
would provide that this consultation may be conducted within the
existing business partnership framework or separately, or both.
Existing law creates within the Business, Transportation and
Housing Agency, the Economic Development and Trade Promotion Account.
This bill would transfer this account to the Governor's Office of
Business and Economic Development for the same purposes. The bill
would create a new subaccount within the account for purposes of
funding the California Export Promotion and Gap Financing Program,
subject to appropriation by the Legislature.
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 For purposes of this chapter:
(1) "Director" means the
Director of the Governor's Office of Business and Economic
Development.
(2) " Office" means the
Governor's Office of Business and Economic Development.
(3) " 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 ,
(4) "EB-5 Program" 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 office shall serve as the lead state
entity under the EB-5 Program. The secretary
director shall set the terms and conditions for issuing a
state designation letter within the structure and scope of the EB-5
Program.
(b) Any public or private corporation may apply for the privilege
of establishing, operating, and maintaining a regional center in
accordance with the EB-5 Program.
(c) (1) Any application for designation as a regional center shall
be accompanied by a letter of support from the secretary
director 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 office .
(2) The secretary director shall
establish reporting and monitoring requirements, consistent with
federal and state requirements, that, at 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 director shall not
sign any designation letter without the applicant first entering
into an agreement with the agency office
to meet the agency's office'
s reporting and monitoring requirements.
(e) The secretary director shall
post on the agency's office's Internet
Web site a list with contact information for each regional center
applicant that receives a designation letter from the
secretary director .
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
EB-5 Program, and any amendments thereto, and any conditions and
restrictions established by the secretary
director 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.
(c) This section shall apply only to EB-5 activities of the state
relating to the EB-5 Program occurring on or after January 1,
2012 2013 .
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.
6317.01. For purposes of this chapter:
(a) "Director" means the Director of the Governor's Office of
Business and Economic Development.
(b) "Office" means the Governor's Office of Business and Economic
Development.
6317.1. (a) The Secretary of Business, Transportation
and Housing director 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
director 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 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
director 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 director shall
annually, in any year that the program is active, post on the
Business, Transportation and Housing Agency's
office'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 director 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.
(d) If the federal requirements prohibit any of the requirements
of this act, the secretary director
shall notify the relevant policy and fiscal committees of the
Legislature about the federal programmatic limitation. The
secretary director may waive any of the
requirements of paragraph (2) of subdivision (a) if the
secretary director determines doing so is
necessary to fulfill federal requirements for the implementation of
the export financing or promotion program.
(e) The secretary director may adopt
regulations to implement the provisions of this chapter. The
secretary director may adopt emergency
regulations to implement the provisions of this chapter if necessary
to meet the time lines established by the federal government.
(f) The director may enter into partnership agreements and
interagency agreements in order to further the purposes of the
program.
(g) (1) There is hereby created within the Economic Development
and Trade Promotion Account, established pursuant to Section
12096.25, a subaccount called the Export Subaccount. Upon
appropriation by the Legislature, the subaccount shall be used to pay
for trade promotion and export assistance pursuant to this chapter,
including, but not limited to, administrative costs of the office.
(2) All moneys received from the federal government, foundations,
and other public or private funding sources for the purpose of
implementing the program shall be deposited in the subaccount. All
loan repayments and interest shall be deposited back into the
subaccount. No General Fund moneys shall be deposited in the
subaccount.
(3) The office may use existing staff to apply for funds from the
federal government, foundations, and other public and private funding
sources, upon a determination by the director that there is a high
likelihood that the application will be successful.
(h) The office shall not commence operation of the program prior
to the director making a determination that there is sufficient money
in the account or subaccount to cover the costs of implementing the
program, including, but not limited to, appropriate oversight costs.
(i) Upon appropriation by the Legislature, all or a portion of the
funds in the subaccount may be allocated by the office, with the
approval of the Department of Finance, to a lending institution or
financial company that will act as trustee of the funds.
(f)
(j) This section shall apply only to agency
office activities occurring on or after January
1, 2012 2013 .
SEC. 4. Section 12096.25 is added to the Government
Code, to read:
12096.25. (a) The director may accept private sector moneys in an
amount not in excess of ten thousand dollars ($10,000) per donation
made to the state for the purposes of promoting international trade
and investment, subject to Title 9 (commencing with Section 81000),
and not in excess of a total of ten thousand dollars ($10,000) per
quarter per donor. All private sector moneys shall be used for these
purposes but the donor may specify the international trade and
investment office or international trade or investment event for
which the private sector money shall be used. The private sector
moneys shall be deposited into the Economic Development and Trade
Promotion Account, which is hereby established in the Special Deposit
Fund in the State Treasury. The director may expend moneys in the
account, without regard to fiscal years, for the purposes of this
section. Moneys in the Economic Development and Trade Promotion
Account may be allocated to an international trade and investment
office, and if so allocated shall be maintained by that office in an
account. Notwithstanding any other law, the director may use the
private sector moneys for expenses incurred to promote international
trade and investment that will directly benefit California
businesses. Records of donations received and expenditures made
pursuant to this section shall be subject to public disclosure.
(b) The international trade and investment office using the funds
shall memorialize the payment in a written record as follows:
(1) Identifies the donor and the official or officials receiving
or using the payment.
(2) Describes the official office use and the nature and amount of
each payment.
(3) Is filed with the office that maintains the records of the
office's statements of economic interests, and the filing is done
within 30 days of the receipt of the payment by the office.
(c) Nothing in this section shall affect any requirement of the
Political Reform Act (Title 9 (commencing with Section 81000)).
SEC. 4. SEC. 5. 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
entity 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 entity
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, 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 implemented through 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. SEC. 6. 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.
(b) 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.
(1) The business partnership shall include representatives from
small, medium, and large businesses and industries, as well as
nongovernmental organizations and government representatives.
(2) The business partnership shall advise the secretary
director 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 director .
(c) (1) The secretary director shall
consult with local and regional governmental 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
director 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
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.
SEC. 7. Section 13997 of the Government
Code is repealed.
13997. (a) The Secretary of Business, Transportation and Housing
may accept private sector moneys in an amount not in excess of ten
thousand dollars ($10,000) per donation made to the state for the
purposes of promoting international trade and investment, subject to
Title 9 (commencing with Section 81000), and not in excess of a total
of ten thousand dollars ($10,000) per quarter per donor. All private
sector moneys shall be used for these purposes but the donor may
specify the international trade and investment office or
international trade or investment event for which the private sector
money shall be used. The private sector moneys shall be deposited
into the Economic Development and Trade Promotion Account, which is
hereby established in the Special Deposit Fund in the State Treasury.
The secretary may expend moneys in the account, without regard to
fiscal years, for the purposes of this section. Moneys in the
Economic Development and Trade Promotion Account may be allocated to
an international trade and investment office, and if so allocated
shall be maintained by that office in an account. Notwithstanding any
other provision of law, the secretary may use the private sector
moneys for expenses incurred to promote international trade and
investment that will directly benefit California business. Records of
donations received and expenditures made pursuant to this section
shall be subject to public disclosure.
(b) The international trade and investment office using the funds
shall memorialize the payment in a written record as follows:
(1) Identifies the donor and the official or officials receiving
or using the payment.
(2) Describes the official agency use and the nature and amount of
each payment.
(3) Is filed with the Business, Transportation and Housing Agency
that maintains the records of the agency's statements of economic
interests, and the filing is done within 30 days of the receipt of
the payment by the agency.
(c) Nothing in this section shall affect any requirement of the
Political Reform Act (Title 9 (commencing with Section 81000)).