Bill Text: CA AB2012 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Economic development.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-11 - Chaptered by Secretary of State - Chapter 294, Statutes of 2012. [AB2012 Detail]

Download: California-2011-AB2012-Amended.html

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BILL NUMBER: AB 2012	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 21, 2012
	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 25, 2012

INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 23, 2012

   An act to amend Sections 13996.55, 13996.75, 13997, 13997.6, and
99500 of, to add Sections 13996.41 and 13996.42 to, to repeal
Sections 13996.45, 13996.6, and 13996.7 of, and to repeal and add
Section 13996.65 of, the Government Code, and to amend Section 71040
of the Public Resources Code, relating to economic development  ,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2012, as amended, 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, including, among others, prohibiting the
Controller from allocating any state funds to the secretary for
international trade and investment activities if specified
requirements are met. 
   Existing law authorizes the Secretary of Business, Transportation
and Housing to accept private donations for the purposes of promoting
international trade and investment, and requires those moneys to be
deposited in the Economic Development and Trade Promotion Account, a
continuously appropriated fund in the Special Deposit Fund in the
State Treasury. Existing law authorizes the secretary to use money in
that account for purposes of supporting international trade and
investment offices, and for expenses incurred to promote
international trade and investment that will directly benefit
California businesses. 
   This bill would repeal the authority of the Secretary of Business,
Transportation and Housing to carry out the powers and duties
described above. The bill would instead authorize 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 specified powers and duties including, among others,
establishing  and terminating  an international trade and
investment office outside of the United States, and accepting private
donations for those purposes.  The bill would authorize the
office to designate a nonprofit entity to operate international trade
and investment offices outside of the United States.  The bill
would require the office to carry out various duties related to
encouraging international trade and investment in the state,
including, among others, developing and implementing an International
Trade and Investment Program, and developing an international trade
and investment strategy for the state. The bill would prohibit the
Controller from allocating any state funds to the secretary for
international trade and investment activities if the international
trade and investment strategy is not prepared by a specified date.
 The bill would impose various limitations on the office in the
collection and management of money donated to the office for
international trade and investment purposes, including, among others,
a limitation on the amount that can be donated by a single donor,
and public disclosure requirements. The bill wou   ld
authorize the office to use money in the Economic Development and
Trade Promotion Account for purposes of promoting international trade
and investment events. By expanding the scope of a continuously
appropriated fund, this bill would constitute an appropriation. 

   (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 laws and regulations
implemented by a board, department, or office within the California
Environmental Protection Agency.
   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. The bill would
expand the scope of the electronic online permit assistance center to
include any business or other entity subject to a law or regulation
implemented by any agency, authority, bureau, board, commission,
conservancy, council, department, state district, or office. 
   (3) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13996.41 is added to the Government Code, to
read:
   13996.41.  (a) The Governor's Office of Business and Economic
Development shall develop and implement an International Trade and
Investment Program that does all of the following:
   (1) Attracts employment-producing direct foreign investment to the
state.
   (2) Provides support for California businesses in accessing
international markets, including assistance to increase California
exports.
   (3) Engages in other international trade or foreign investment
activities assigned by the Governor.
   (b) The Director of the Governor's Office of Business and Economic
Development may establish  and terminate  international
trade and investment offices outside of the United States as he or
she determines is appropriate if the requirements of Section 13996.65
are satisfied.
   (c) This section shall not be construed to confer powers or impose
duties  imposed  upon the Governor's Office of
Business and Economic Development that conflict with any powers
conferred or duties imposed upon the Department of Food and
Agriculture with respect to the promotion of California agriculture,
fish, or forest exports.
   (d) The Governor's Office of Business and Economic Development
shall develop a conflict-of-interest and gift policy that applies to
the Governor's Office of Business and Economic Development and all
international trade and investment offices established by it.
   (e) Any international trade and investment office established by
the Governor's Office of Business and Economic Development may be
funded  only   in whole or in part  by
nonstate funds.  The sources and amounts of these funds shall
be disclosed on it's Internet Web site within 30 days of receipt and
shall include, but not be limited to, the name of the contributor
and the amount contributed.  
   (f) The Governor's Office of Business and Economic Development may
contract with a nonprofit entity to operate an international trade
and investment office. The contract shall, among other provisions,
require the nonprofit entity to provide the Governor's Office of
Business and Economic Development information sufficient to satisfy
the reporting requirements in subdivision (c) of Section 13997 within
30 days of receipt by the nonprofit entity of each donation used to
fund an international trade and investment office. 
  SEC. 2.  Section 13996.42 is added to the Government Code, to read:

   13996.42.  The Governor's Office of Business and Economic
Development may establish an international trade and investment
office outside of the United States if both of the following
conditions are met:
   (a) The country where an international trade and investment office
would be located has the greatest potential for direct foreign
investment in California, export growth, or both, as determined by
the director.
   (b) The Director of the Governor's Office of Business and Economic
Development has included the new international trade and investment
office in the Governor's Office of Business and Economic Development'
s current annual program budget and strategy and business plan for
the year for the International Trade and Investment Program as
required by Section 13996.65  of the Government Code
 .
  SEC. 3.  Section 13996.45 of the Government Code is repealed.
  SEC. 4.  Section 13996.55 of the Government Code is amended to
read:
   13996.55.  (a) The Director of the Governor's Office of Business
and Economic Development shall provide to the Legislature, not later
than February 1, 2014, 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 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) 
    (b)  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) 
    (c)  The strategy shall be updated pursuant to the
procedures of this section at least once every five years.
  SEC. 5.  Section 13996.6 of the Government Code is repealed.
  SEC. 6.  Section 13996.65 of the Government Code is repealed.
  SEC. 7.  Section 13996.65 is added to the Government Code, to read:

   13996.65.  (a) The director shall prepare the following:
   (1) A budget for the International Trade and Investment Program
that includes a separately stated budget for each international trade
and investment office. The budget shall provide all the following:
   (A) A description of how the International Trade and Investment
Program and each individual international trade and investment office
will be funded.
   (B) A description of staffing levels and the positions needed to
operate each international trade and investment office.
   (2) A strategy and business plan for the International Trade and
Investment Program, developed with input from California businesses
that shall include, but not be limited to, measurable goals,
objectives, and outcomes and timelines necessary to attract
employment-producing direct foreign investment to the state and
increase California exports. The strategy and business plan shall
include, but not be limited to, all of the following:
   (A) A description of the staffing levels and staff expertise
needed to operate  the   each 
international trade and investment office.
   (B) A description of monitoring and oversight procedures
implemented for the International Trade and Investment Program.
   (C) A description of how a newly proposed international trade and
investment office will facilitate an increase of direct foreign
investment in California  ,   or  an
increase in California exports, or both.
   (3) A written review of the implementation of the prior year's
strategy and business plan for the International Trade and Investment
Program that addresses the performance of the program and each
international trade and investment office. 
   (4) 
    (b)  The annual budget, the strategy and business plan
for the International Trade and Investment Program, and the prior
year's review drafted pursuant to subdivision (a) shall be
transmitted to the Chief Clerk of the Assembly, the Secretary of 
the  Senate, the Speaker of the Assembly, the President pro
Tempore of the Senate, the chair of the Assembly Committee on Jobs,
Economic Development, and the Economy and the chair of the Senate
Committee on Business, Professions and Economic Development, or
respective successor committees, with jurisdiction over the
international trade and economic development programs.
  SEC. 8.  Section 13996.7 of the Government Code is repealed.
  SEC. 9.  Section 13996.75 of the Government Code is amended to
read:
   13996.75.  The Controller shall not allocate any state funds to
the Governor's Office of Business and Economic Development for
international trade and investment activities if the strategy for
international trade and investment has not been submitted to the
Legislature pursuant to subdivision (a) of Section 13996.55 and
subdivision (b) of Section 13996.65 by May 1, 2014.
  SEC. 10.  Section 13997 of the Government Code is amended to read:

   13997.  (a) The Governor's Office of Business and Economic
Development 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 Director of
the Governor's Office of Business and Economic Development 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 Governor's Office of Business and Economic
Development that maintains the records of the statements of economic
interests, and the filing is done within 30 days of the receipt of
the payment by the Governor's Office of Business and Economic
Development. 
    13997.    (a) With respect to international trade
and investment offices funded in whole or in part by nonstate funds
pursuant to subdivision (e) of Section 13996.41, all of the following
shall apply:  
   (1) The Governor's Office of Business and Economic Development may
accept nonstate moneys, including, but not limited to, federal and
private sector funds, for the purposes of operating any international
trade and investment office, subject to Title 9 (commencing with
Section 81000). A donor shall not donate more than 25 percent of the
annual budget of an international trade and investment office in a
calendar year. The donor may specify the international trade and
investment office for which the private sector moneys shall be used.
The private sector moneys shall be deposited in the Economic
Development and Trade Promotion Account, which is hereby established
in the Special Deposit Fund (Art. 2 (commencing with Section 16370),
Ch. 2, Pt. 2, Div. 4) within the State Treasury. Notwithstanding
Section 13340, the Director of the Governor's Office of Business and
Economic Development may expend moneys in the Economic Development
and Trade Promotion Account, without regard to fiscal year, for the
purposes of this subdivision. 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. Records of donations received and
expenditures made pursuant to this section shall be subject to public
disclosure.  
   (2) For each donation that it receives to fund an international
trade and investment office, the Governor's Office of Business and
Economic Development shall post a report on its Internet Web site
within 30 days of receiving that donation. The report shall contain
all of the following information: name and address of the donor;
amount of the donation; date the donation was made; name and address
of the entity receiving or using the donation; a brief description of
the goods or services provided or purchased, if any; and a
description of the specific purpose or event for which the donation
was made, if any.  
   (b) The Governor's Office of Business and Economic Development may
accept private moneys for the purposes of promoting international
trade and investment events subject to Title 9 (commencing with
Section 81000). The donor may specify the international trade and
investment event for which the private sector moneys shall be used.
 
   (1) The private sector moneys shall be deposited into the Economic
Development and Trade Promotion Account. Notwithstanding Section
13340, the Director of the Governor's Office of Business and Economic
Development may expend moneys in the Economic Development Trade
Promotion Account without regard to fiscal year, for purposes of this
subdivision. Records of donations received and expenditures made
pursuant to this section shall be subject to public disclosure. 

   (2) For each donation that it receives to fund international trade
and investment events, the Governor's Office of Business and
Economic Development shall post a report on its Internet Web site
within 30 days of receiving that donation. The report shall contain
the following information: name and address of the donor; amount of
the donation; date the donation was made; name and address of the
entity receiving or using the donation; a brief description of the
goods or services provided or purchased, if any; and a description of
the specific purpose or event for which the donation was made, if
any.  
   (c) With respect to international trade and investment offices
operated under contract with a nonprofit entity pursuant to
subdivision (f) of Section 13996.41:  
   (1) A donor shall not donate more than 25 percent of the annual
budget of an international trade and investment office in a calendar
year.  
   (2) For each donation that it receives to fund an international
trade and investment office, the Governor's Office of Business and
Economic Development shall post a report on its Internet Web site
within 30 days of receiving that donation. The report shall contain
the following information: name and address of the donor; amount of
the donation; date the donation was made; name and address of the
entity receiving or using the donation; a brief description of the
goods or services provided or purchased, if any; and a description of
the specific purpose or event for which the donation was made, if
any.  
   (c) 
    (d)  Nothing in this section shall affect any
requirement of the Political Reform Act (Title 9 (commencing with
Section 81000)).
  SEC. 11.  Section 13997.6 of the Government Code is amended to
read:
   13997.6.  (a) The California Economic Development Fund is hereby
created in the State Treasury for the purpose of receiving federal,
state, local, and private economic development funds, and receiving
repayment of loans or grant proceeds and interest on those loans or
grants.
   (b) Upon appropriation by the Legislature, moneys in the fund may
be expended by the Governor's Office of Business and Economic
Development to provide matching funds for loans or grants to public
agencies, nonprofit organizations, and private entities, and for
other economic development purposes, consistent with the purposes for
which the moneys were received.
  SEC. 12.  Section 99500 of the Government Code is amended to read:
   99500.  (a) The Governor is the primary state officer representing
California's interest in international affairs, to the extent that
representation is not in conflict with federal law or the California
Constitution, and except as otherwise specified in this title, to the
extent this title is not in conflict with federal law or the
California Constitution.
   (b) The Lieutenant Governor is the Chair of the California
Commission for Economic Development, to improve trade opportunities
for California. The Legislature finds that the commission has
developed international partnerships that provide venues for foreign
companies to do business in the state and for California-based
companies to access foreign markets.
   (c) The Attorney General is the chief law officer of California
and as such assists the federal government in defending against
international challenges to California laws.
   (d) The Secretary of State oversees the International Business
Relations Program, which aims to develop stronger connections between
the international business community and the state by assisting
foreign business entities with the various filing processes and
procedures in California.
   (e) The Department of Food and Agriculture is the primary state
agency for the promotion of California agriculture, fish, and forest
exports.
   (f) The  Natural  Resources Agency and the California
Environmental Protection Agency are the primary state agencies for
the promotion of international exchange of environmental protection
technologies, alternative energy technologies, and the promotion of
the transfer of environmental technology to and from the state.
   (g) The Governor's Office of Business and Economic Development is
the primary state agency responsible for international trade and
investment activities in areas other than those covered by the
Department of Food and Agriculture.
   (h) Subdivisions (a) to (f), inclusive, are declaratory of, and do
not constitute a change in, existing law.
  SEC. 13.  Section 71040 of the Public Resources Code is amended to
read:
   71040.  The 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 an agency, authority, bureau,
board, commission, conservancy, council, department, state district,
or office, 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 an agency, authority, bureau, board,
commission, conservancy, council, department, state district, or
office. 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.
   SEC. 14.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   International trade is a critical part of the state's economy, and
immediate implementation of this bill is necessary for the state's
economy to grow and prosper.