SECTIONS 13996.4-13996.75 - California Statutes

GOVERNMENT CODE

SECTION 13996.4-13996.75

13996.4. The Legislature finds and declares all of the following:
(a) The statutory authority for the Technology, Trade, and
Commerce Agency, including the agency's international trade and
investment promotion programs, was repealed by Chapter 229 of the
Statutes of 2003, thereby reducing the capacity of state government
to assist California firms in developing global business
opportunities.
(b) The repeal of the statutory authority for the Technology,
Trade, and Commerce Agency has increased the importance of
strengthening collaborative linkages among remaining California-based
international trade and investment promotion programs operated at
federal, state, regional, and local levels. These programs include,
but are not limited to, the Centers for International Trade
Development operated by the California Community Colleges, 15 offices
of the United States Commercial Service within the United States
Department of Commerce, numerous local and regional World Trade
Centers, and public and private economic development and trade
associations.
(c) According to data for 2000, international trade and investment
activity in the state supports one in every seven California jobs.
(d) According to the Public Policy Institute of California:
(1) Nearly 94 percent of all exporters located in California are
small- or medium-sized firms. Over 90 percent of businesses in
California are small businesses and over 50 percent of all workers
are employed by a small business.
(2) Exporters are more productive and pay higher wages than
nonexporters.
(3) Effective state programs supporting export opportunities
should identify and respond to differing needs of both export-willing
and export-ready firms.
(e) The adequacy of the state's infrastructure, workforce,
research facilities, manufacturing and service industries, and access
to capital form the foundation of California's global market-related
economy.
(f) California's multicultural and ethnic populations offer unique
opportunities for international trade and investment.
(g) United States subsidiaries of foreign companies in California
employed 561,000 California workers from 2000 to 2005. This is an
increase of 15 percent. In comparison to other states, California is
an attractive location for international employers, ranking first in
the United States in the number of employees supported by United
States subsidiaries.
(h) California's trade and investment policy is a living document
that should be regularly updated to reflect emerging business trends
and the changing needs of California businesses and workers.

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 through its state strategy, which shall be based on
current and emerging market conditions and the needs of investors,
businesses, and workers to be competitive in global markets.

13996.5. (a) Not later than October 1, 2007, the Secretary of
Business, Transportation and Housing shall complete a study on the
potential roles of the state in global markets.
(b) The study shall include, but not be limited to, all of the
following:
(1) A discussion of California's economy and its relationship to
global markets, including identification of current and emerging
trends, industries, services, and areas of comparative advantage.
(2) An inventory and gap analysis of existing programs and
services provided by local, state, federal, and private entities,
which serve, or could serve, businesses in opening new foreign
markets for their products, attracting foreign investment to their
businesses, or generally assisting California businesses in global
markets.
(3) An assessment and gap analysis of the current and future
physical and human infrastructure related to foreign trade and
investment markets, and the appropriate role for state government to
improve the infrastructure needs.
(4) The results of a survey of businesses on their needs and
priorities related to foreign trade and investment. The study may
rely on current surveys prepared by trade organizations or academic
centers dedicated to economic development, or other surveys, as
appropriate.
(5) An examination of how best to coordinate and leverage existing
local, state, and federal organizations, programs, and services
related to international trade and investment.
(6) An assessment of unique opportunities and challenges in
developing businesses and attracting investment along the border and
in historically underserved urban and rural areas.
(c) (1) The study shall make recommendations on policies,
programs, and funding needs for the next three years, seven years,
and over the long term.
(2) Recommendations may include infrastructure improvements,
workforce training needs, incentives for business or investors, and
need for international trade and investment offices in relation to
the international trade and investment needs of the state.
(3) To the extent international trade and investment offices are
found to be appropriate, the study may make general recommendations
on the administration, oversight, and mission or missions of the
offices.
(4) The study shall recommend priorities for state activities and
funding related to international trade and investment. The priorities
shall be based on the assessment of current and emerging market
trends, the inventory and gap analysis of programs and services, the
assessment of current and future infrastructure and workforce needs,
and input by the business community.
(5) The study shall recommend an organizational structure for the
state administration of international trade and investment policies,
programs, and services.
(d) During the course of the study, the secretary shall 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 Economic Strategy Panel, 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.
(e) The results of the study shall be submitted to the Chief Clerk
of the Assembly and the Secretary of the Senate. A copy of the study
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.

13996.55. (a) Based on the study prepared pursuant to Section
13996.5, the Secretary of Business, Transportation and Housing shall
provide to the Legislature, not later than February 1, 2008, 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) The strategy shall be developed in consultation with the
California Economic Strategy Panel. In the course of developing the
strategy, the secretary 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) 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) (1) The strategy shall be reviewed in at least one public
hearing by the relevant policy and fiscal committees of each house of
the Legislature. The hearings shall be held within 60 days of the
strategy being submitted to the Legislature. If the strategy is
submitted when the Legislature is in recess, the hearings shall occur
within 60 days of the members convening.
(2) The legislative committees may make recommendations to the
secretary on the strategy, and the secretary may modify the strategy
accordingly.
(e) The secretary shall report to the fiscal committees of the
Legislature on or before February 1, 2009, and by that date each year
thereafter, on how the Governor's proposed budget relates to the
strategy.
(f) The strategy shall be updated pursuant to the procedures of
this section at least once every five years.

13996.6. (a) 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) The business partnership shall include representatives from
small, medium, and large businesses and industries, as well as
nongovernmental organizations and government representatives.
(c) 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.

13996.65. (a) (1) The Secretary of Business, Transportation and
Housing is prohibited from establishing any international trade and
investment office unless the following conditions are met:
(A) The secretary determines that, based on a review of the
international trade and investment policies and the recommendations
and priorities established in the international trade and investment
strategy developed pursuant to Section 13996.55, it is appropriate to
consider establishing international trade and investment offices.
(B) The secretary prepares a separate international trade and
investment office strategy, that meets the requirements and
conditions of this section.
(C) The international trade and investment office strategy
receives statutory authorization pursuant to the requirements and
conditions of this section.
(D) The secretary submits a business plan to the Legislature, that
meets the requirements of Section 13996.7.
(2) This chapter does not apply to any international trade and
investment office established pursuant to Section 13997.1.
(b) If the secretary determines that opening international trade
and investment offices is in the best interest of the state, the
secretary shall develop a strategy for selecting, opening, and
managing international trade and investment offices.
(c) The international trade and investment office strategy shall
conform to at least all of the following requirements:
(1) It shall be based on the needs and priorities of California's
businesses.
(2) It shall be consistent with the resources and priorities of
the overall trade and investment strategy submitted to the
Legislature pursuant to Section 13996.55.
(3) It shall define the program's goals, objectives, and timelines
for achieving quantifiable targets. Individual offices may have
separate missions or play different roles within the overall
international trade and investment office strategy. To the extent
that the proposed offices are expected to assist businesses in
opening new markets, these activities shall be targeted primarily to
small- and medium-sized businesses.
(4) It shall outline the Business, Transportation and Housing
Agency's management and oversight responsibilities, funding levels,
and activities.
(5) It shall outline how international trade and investment office
locations will be selected by the secretary and approved by the
Governor, including the general geographic locations, number of
offices, a process for determining how long an office should remain
operational, and duties undertaken by the offices.
(6) It shall define how the offices will be funded, including
funding for oversight and monitoring.
(7) It shall consider how offices will be staffed, including
staffing levels and types of positions needed to operate the offices
proposed in the international trade and investment office strategy.
(8) It shall provide a conflict-of-interest policy and gift
policy.
(9) It shall provide for the appointment of a senior level
international trade and investment office manager as described in
subdivision (c) of Section 99106.
(d) The international trade and investment office 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.
(e) (1) The international trade and investment office strategy
shall be reviewed in at least one public hearing by the relevant
policy and fiscal committees of each house of the Legislature. The
hearings shall be held within 60 days of the strategy being submitted
to the Legislature. If the strategy is submitted when the
Legislature is in recess, the hearings shall occur within 60 days of
the members convening.
(2) The legislative committees may make recommendations to the
secretary on the strategy, and the secretary may modify the strategy
accordingly.
(f) The international trade and investment office strategy shall
be updated no less than every five years from the date that the first
strategy is submitted to the Chief Clerk of the Assembly and the
Secretary of the Senate.
(g) The international trade and investment office strategy shall
be implemented only upon statutory authorization by the Legislature.

13996.7. (a) Except as specified in Section 13997.1, international
trade and investment offices are prohibited from being established
except under the conditions specified in the international trade and
investment office strategy described in Section 13996.65. Except as
specified in Section 13997.1, no office may be established except as
provided in this chapter.
(b) In establishing offices pursuant to this section, the
secretary shall submit to the Legislature a business plan for each
proposed office, which shall include, but not be limited to, all of
the following:
(1) The mission of the office, goals, objectives, and timelines
for achieving quantifiable targets.
(2) The level of staffing and staff expertise requirements needed
to successfully operate the office.
(3) The proposed terms for the operation of the offices, including
the duration and oversight needed for office operations.
(4) How the opening of the office relates to the international
trade and investment office strategy and the overall international
trade and investment strategy.
(c) (1) The international trade and investment offices shall be
under the direction of a manager of international trade and
investment offices within the agency, to be designated by the
secretary. The manager shall be an individual with experience in
management and oversight of public agencies or experience in
international trade, investments, or global business.
(2) No international trade and investment office shall be opened
until the position of the manager of international trade and
investment offices is filled within the agency.
(3) The position of the manager of the international trade and
investment offices shall be a state employee position funded and
staffed in a manner consistent with the international trade and
investment office strategy.
(d) (1) Each office established pursuant to this chapter shall
submit a report to the agency by December 1 of each year on meeting
its goals, objectives, and timelines as outlined in its business
plan.
(2) The secretary shall provide a summary of the reports to the
relevant policy committees of each house of the Legislature, as set
forth in paragraph (2) of subdivision (f), by the following February
1 of each year.
(e) The agency shall conduct an annual performance review of each
office for the first three years of the office's operation. After
this term, upon the determination of the secretary, the performance
reviews may be undertaken at a longer interval, but not to exceed
five years. If the secretary determines that an extended interval is
appropriate for a particular office, this shall be clearly indicated
in the secretary's annual report to the Legislature on the activities
of the offices.
(f) (1) The secretary shall contract for an independent study of
the operations and effectiveness of the international trade and
investment offices established pursuant to this section at the
conclusion of the first two years of operation and at four year
intervals after the initial study.
(2) The report on the results of the study shall be submitted to
the Chief Clerk of the Assembly and the Secretary of the Senate no
later than two years after the opening of the first office pursuant
to this chapter. A copy of the report 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.
(g) International trade and investment offices shall be funded
only according to the international trade and investment office
strategy authorized pursuant to subdivision (g) of Section 13996.65,
except as provided for in Section 13997.1. All nonstate sources of
funding shall be identified on the agency Web site by name and the
amount contributed. The agency shall be responsible for all state
administrative and oversight costs. The agency shall also be
responsible for some portion of the costs of each office, not to
exceed one hundred thousand dollars ($100,000) per office.
(h) Consistent with the international trade and investment office
strategy, the secretary shall make a determination by September 1 of
each year that sufficient funds have been appropriated in the annual
Budget Act to meet its oversight and management responsibilities
related to the proper operation of the offices. If, in the opinion of
the secretary, insufficient funding has been provided, the secretary
shall notify the Joint Legislative Budget Committee and submit a
budget change proposal to request sufficient funding.

13996.75. The Controller shall not allocate any state funds to the
Business, Transportation and Housing Agency for international trade
and investment activities if any of the following conditions occur:
(a) The strategy for international trade and investment has not
been submitted to the Legislature pursuant to subdivision (a) of
Section 13996.55 by May 1, 2008, or the strategy update required by
subdivision (f) of that section has not been completed within six
years of the completion of the original strategy or the most recent
update, as applicable.
(b) The report to the fiscal committees of the Legislature
required by subdivision (e) of Section 13996.55 has not been
submitted by May 1 of the year in which it is due.
(c) The summary required by paragraph (2) of subdivision (d) of
Section 13996.7 has not been submitted to the Legislature by May 1 of
the year in which it is due.
(d) The determination required by subdivision (h) of Section
13996.7 has not been made by December 1 of the year in which it is
due.