Chapter 2.5. International Trade And Investment of California Government Code >> Division 3. >> Title 2. >> Part 4.7. >> Chapter 2.5.
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investment promotion programs, was repealed by Chapter 229 of the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.
(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 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 in whole or in part by nonstate funds.
(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.
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 is among those with 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.
(a) The Director of the Governor's Office of Business and
Economic Development shall provide to the Legislature, not later
than February 1, 2019, 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. 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) (1) The strategy shall be based on current and emerging market
conditions and the needs of investors, businesses, and workers to be
competitive in global markets. In addition to the policy goals,
objectives, and recommendations required pursuant to subdivision (a),
the strategy shall include a framework that enables the Governor's
Office of Business and Economic Development to evaluate on an ongoing
basis, as appropriate, current workforce, infrastructure, research
and development, and other needs of small and large firms, including,
but not limited to, highways, airports, and rail that link
businesses with the state's ports of entry and foreign and domestic
markets.
(2) The strategy may, to the extent relevant and feasible, be
based on existing studies and reports, including, but not limited to,
the Goods Movement Action Plan, the California Strategic Workforce
Development Plan, the California Export of Recycled Materials Report,
the California Five-Year Infrastructure Plan, and the Environmental
Goals and Policy Report.
(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) The strategy shall be updated pursuant to the procedures of
this section at least once every five years.
(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 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.
(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.
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.