BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2012 (J Perez) - Economic development.
Amended: August 6, 2012 Policy Vote: B,P&ED 8-0
Urgency: No Mandate: No
Hearing Date: August 6, 2012 Consultant:
Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2012 would transfer the authority for
undertaking international trade and foreign investment
activities from the Business, Transportation and Housing Agency
to the Governor's Office of Business and Economic Development
(GO-Biz), including establishing any international trade and
investment office. This bill would transfer the responsibility
for establishing an Internet-based permit assistance center from
the California Environmental Protection Agency to GO-Biz.
Fiscal Impact: $100,000 to $200,000 in 2012-13 and 2013-14 to
the General Fund for workload and contracts to update the trade
and investment studies.
Estimated $250,000 to $1,000,000 from private funds
annually depending on the location of the trade office.
Background: The International Trade and Investment Strategy was
prepared pursuant to the California International Trade and
Investment Act of 2006 established by SB 1513 (Romero) Chapter
663/2006. The strategy included policy goals, objectives and
recommendations necessary to implement an international trade
and investment program; measurable outcomes and timelines;
impediments for achieving goals and objectives; identification
of key stakeholder partnerships; funding options; and, an
organizational structure for administration of policies,
programs and services.
The strategy was to be developed in consultation with agencies,
boards and commissions that had statutory responsibilities
related to workforce development, infrastructure, business, and
international trade and investment. The strategy was to be
updated, pursuant to the specifications outlined in the act, at
least once every five years.
AB 2012 (J Perez)
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The Toward a California Trade and Investment Strategy was to
report on the potential roles for California government in
global markets, the first of two reports pursuant to the act.
The act specified that this report include a discussion of
economic trends, existing programs, physical and human
infrastructure, business surveys, opportunities for
coordination, border and under-served areas, and recommendations
on policies, programs, funding, priorities and structure. The
act specified inter-agency consultations and delivery of a
specific strategy in 2008.
In preparing this report, the authors undertook original
research, writing, and analysis; organized four business focus
groups; and held meetings with administrators of over a dozen
State offices. The team assisting on this report came from the
University of California and the Bay Area Economic Forum (BAEF).
UC efforts, organized by the Office of the President, included
a multi-campus faculty group providing research, counsel, and
production of several white papers. BAEF provided staff,
consulting and community resources for the production of the
final report, input from trade organizations, and business
survey results.
These reports have not been updated. The initial strategy
report cost approximately $150,000, which included a $40,000
contract with the BAEF (which merged with the Bay Area Council
in 2008 to become the Bay Area Council Economic Institute).
Proposed Law: Any international trade and investment office
established by GO-Biz may be funded only by nonstate funds. The
sources and amounts of those funds shall be disclosed on the
GO-Biz Web site within 30 days of receipt.
Staff Comments: GO-Biz will likely need to contract in order to
update some or all of the International Trade and Investment
Strategy and the Toward a California Trade and Investment
Strategy.
The transfers of authority for undertaking international trade
and foreign investment activities from BT&H to GO-Biz and
CalGOLD from CalEPA to GO-Biz were accomplished as part of the
Budget Act of 2012.
AB 2012 (J Perez)
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