AB 1137

Bill Subjects

Abstract

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 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 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 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 director to apply for and receive federal funding for the implementation of a state and federal export financing program. The bill would require the director, upon receipt of moneys pursuant to that application, to implement a program that meets specified conditions. The bill would require the director to report on the program, as specified, and to annually post on the 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 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 a strategy developed by the director. This bill would require the director to consult with local and regional governmental entities and associations. The bill would authorize the director, as a part of the consultation process, to create an advisory board comprised of representatives from certain entities to provide the director with advice on the content of the study, and on the strategy that the director is developing. The bill would require the director as a part of the consultation to discuss certain issues related to trade and investment. 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.