Bill Text: CA AB2734 | 2009-2010 | Regular Session | Enrolled
Bill Title: Office of Economic Development.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Vetoed) 2010-09-23 - Vetoed by Governor. [AB2734 Detail]
Download: California-2009-AB2734-Enrolled.html
BILL NUMBER: AB 2734 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2010
PASSED THE ASSEMBLY AUGUST 31, 2010
AMENDED IN SENATE AUGUST 17, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member John A. Perez
(Coauthors: Assembly Members Arambula, Bill Berryhill, Block,
Caballero, and Logue)
(Coauthor: Senator DeSaulnier)
FEBRUARY 19, 2010
An act to amend Section 15570 of, to add Chapter 1.6 (commencing
with Section 12096) to Part 2 of Division 3 of Title 2 of, and to
repeal Article 7 (commencing with Section 65054) of Chapter 1.5 of
Division 1 of Title 7 of, the Government Code, relating to economic
development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2734, John A. Perez. Office of Economic Development.
(1) Existing law provides for various state programs and services
for the purpose of attracting and retaining businesses in this state.
Existing law creates the Office of Small Business Advocate in the
Office of Planning and Research in the Governor's office.
This bill would create the Office of Economic Development, which
would be administered by a director appointed by the Governor. The
bill would require that the office serve the Governor as the lead
entity for economic strategy and the marketing of California on
issues relating to business development, private sector investment,
and economic growth, and make recommendations to the Governor and the
Legislature regarding policies, programs, and actions to advance
statewide economic goals. The bill would create the California
Business Investment Services Program, as specified, within the
office, under the authority of the director, for the purpose of
serving employers, corporate executives, business owners, and site
location consultants who are considering California for business
investment and expansion. The bill would also move the Office of
Small Business Advocate to the Office of Economic Development.
(2) Existing law requires the Secretary of Labor and Workforce
Development to lead the development of a biennial California Economic
Development Strategic Plan and, in doing so, to review the
recommendations of the California Economic Strategy Panel, which is
created for this purpose. Existing law requires the secretary to
convene a biennial economic strategy panel, conduct meetings, and
submit a report to the Legislature regarding its findings and
recommendations regarding developing a system of accountability, as
specified.
This bill would delete the date for the submission of the report
described above and instead require that the report also be submitted
to the Governor's Office of Economic Development after the necessary
meetings have been held.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 1.6 (commencing with Section 12096) is added to
Part 2 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER 1.6. OFFICE OF ECONOMIC DEVELOPMENT
12096. This chapter shall be known, and may be cited, as the
Economic Revitalization Act.
Article 1. Intent
12096.1. The Legislature finds and declares all of the following:
(a) In 2008, California had the eighth largest economy in the
world, with a gross state product of over one trillion eight hundred
billion dollars ($1,800,000,000,000).
(b) California's significance in the global marketplace results
from a variety of factors, including:
(1) Its strategic west coast location that provides direct access
to the growing markets and technology centers of Mexico, Latin
America, Japan, China, and Southeast Asia.
(2) Its diverse regional economies.
(3) Its ethnically diverse population and well-educated workforce.
(4) Its access to a wide variety of venture and other private
capital.
(5) Its rich inventory of pioneering businesses.
(6) Its culture of entrepreneurship, particularly in the areas of
computer technology, biotechnology, medical devices and diagnostic
tools, and clean and green technology.
(7) Its access to world-class research and educational
institutions.
(c) It is therefore in California's best interest to have a
designated Office of Economic Development within the Governor's
office to provide a visible point of contact and assistance to
companies, entrepreneurs, and small business owners, seeking
information on business growth and economic development
opportunities, as well as technical assistance for navigating the
state's regulatory environment.
(d) It is further in California's best interest to reexamine and
reframe the state government's apparatus for the delivery of services
to the business community, particularly the small business
community, to better position California to compete in the global
economy.
Article 2. Definitions
12096.2. For purposes of this chapter:
(a) "Office" means the Office of Economic Development.
(b) "Director" means the Director of the Office of Economic
Development.
Article 3. General
12096.3. (a) The Office of Economic Development is hereby
established in state government within the Governor's office. The
office shall be under the direct control of a director, who shall be
responsible to the Governor.
(b) The Governor shall appoint the Director of the Office of
Economic Development, subject to confirmation by the Senate, who
shall perform all duties, exercise all powers, assume and discharge
all responsibilities, and carry out and effect all purposes vested by
law in the office, including contracting for professional or
consultant services in connection with the work of the office.
(c) The salary of the Director of the Office of Economic
Development shall be fixed pursuant to Section 12001.
Article 4. Powers and Duties
12096.4. The office shall serve the Governor as the lead entity
for economic strategy and the marketing of California on issues
relating to business development, private sector investment, and
economic growth. In this capacity, the office shall:
(a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing programs,
advance statewide economic goals and respond to emerging economic
problems and opportunities, and ensure that all state policies and
programs conform to the adopted state economic and business
development goals.
(b) Coordinate the development of policies and criteria to ensure
that federal grants administered or directly expended by state
government advance statewide economic goals and objectives.
(c) Market the business and investment opportunities available in
California by working in partnership with local, regional, federal,
and other state public and private institutions to encourage business
development and investment in the state.
(d) Provide, including, but not limited to, all of the following:
(1) Economic and demographic data.
(2) Financial information to help link businesses with state and
local public and private programs.
(3) Workforce information, including, but not limited to, labor
availability, training, and education programs.
(4) Transportation and infrastructure information.
(5) Assistance in obtaining state and local permits.
(6) Information on tax credits and other incentives.
(7) Permitting, siting, and other regulatory information pertinent
to business operations in the state.
(e) Establish a well-advertised telephone number, an interactive
Internet Web site, and an administrative structure that effectively
supports the facilitation of business development and investment in
the state.
(f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.
(g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state's image as
a destination for business investment and expansion.
(h) Conduct research on the state's business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.
(i) Support small businesses by providing information about
accessing capital, complying with regulations, and supporting state
initiatives that support small business.
12096.5. (a) During the 2010-11 fiscal year, the office shall be
funded with existing resources and staffed by personnel loaned from
agencies and departments that address economic development,
including, but not limited to, the promotion of small business. The
agencies shall include, but not be limited to, the Labor and
Workforce Development Agency, the Business, Transportation and
Housing Agency, the California Environmental Protection Agency, the
Natural Resources Agency, the State and Consumer Services Agency, the
Department of Food and Agriculture, the State Chief Information
Officer, and the Office of Planning and Research.
(b) Each member of the Governor's cabinet shall identify a senior
manager within his or her agency who shall coordinate business
support activities with the office.
(c) For the 2011-12 fiscal year and subsequent fiscal years, the
office shall develop a budget in coordination with the Department of
Finance pursuant to the state budgeting process, including the
permanent transfer of associated positions.
Article 5. California Business Investment Services Program
12096.7. (a) The California Business Investment Services Program
is hereby created within the Office of Economic Development.
(b) The program shall be under the direct authority of the
director.
(c) The purpose of the program is to serve employers, corporate
executives, business owners, and site location consultants who are
considering California for business investment and expansion.
(d) In implementing the program, the director shall establish and
implement a process for convening strike teams on key business
development situations, including, but not limited to, attracting new
businesses, relocation of large manufacturers, or the closure of a
large business employer.
(e) In implementing the program, the director shall work
cooperatively with local, regional, federal, and other state public
and private marketing institutions and trade organizations in
attracting, retaining, and helping businesses grow and be successful
in California.
Article 6. Small Business Advocate
12098. (a) The Legislature finds and declares that it is in the
public interest to aid, counsel, assist, and protect, insofar as is
possible, the interests of small business concerns in order to
preserve free competitive enterprise and maintain a healthy state
economy.
(b) In order to advocate the causes of small business and to
provide small businesses with the information they need to survive in
the marketplace, there is created within the Office of Economic
Development the Office of Small Business Advocate.
(c) The advocate shall post on his or her Internet Web site the
name and telephone number of the small business liaison designated
pursuant to Section 14846.
12098.1. The following definitions apply to this article, unless
otherwise indicated:
(a) "Advocate" means the Small Business Advocate who is also the
Director of the Office of Small Business Advocate.
(b) "Director" means the Director of the Office of Small Business
Advocate.
(c) "Office" means the Office of Small Business Advocate.
12098.3. (a) The Director of the Office of Small Business
Advocate shall be appointed by, and shall serve at the pleasure of,
the Governor.
(b) The Governor shall appoint the employees who are needed to
accomplish the purposes of this article.
(c) The duties and functions of the advocate shall include all of
the following:
(1) Serve as the principal advocate in the state on behalf of
small businesses, including, but not limited to, advisory
participation in the consideration of all legislation and
administrative regulations that affect small businesses, and advocacy
on state policy and programs related to small businesses on disaster
preparedness and recovery including providing technical assistance.
(2) Represent the views and interests of small businesses before
other state agencies whose policies and activities may affect small
business.
(3) Enlist the cooperation and assistance of public and private
agencies, businesses, and other organizations in disseminating
information about the programs and services provided by state
government that are of benefit to small businesses, and information
on how small businesses can participate in, or make use of, those
programs and services.
(4) Issue a report every two years evaluating the efforts of state
agencies and, where appropriate, specific departments that
significantly regulate small businesses to assist minority and other
small business enterprises, and making recommendations that may be
appropriate to assist the development and strengthening of minority
and other small business enterprises.
(5) Consult with experts and authorities in the fields of small
business investment, venture capital investment, and commercial
banking and other comparable financial institutions involved in the
financing of business, and with individuals with regulatory, legal,
economic, or financial expertise, including members of the academic
community, and individuals who generally represent the public
interest.
(6) Determine the desirability of developing a set of rational,
objective criteria to be used to define small business, and develop
those criteria, if appropriate.
(7) Seek the assistance and cooperation of all state agencies and
departments providing services to, or affecting, small business,
including the small business liaison designated pursuant to Section
14846, to ensure coordination of state efforts.
(8) Receive and respond to complaints from small businesses
concerning the actions of state agencies and the operative effects of
state laws and regulations adversely affecting those businesses.
(9) Counsel small businesses on how to resolve questions and
problems concerning the relationship of small business to state
government.
(10) Maintain, publicize, and distribute an annual list of persons
serving as small business ombudsmen throughout state government.
(11) Consult with the Department of Transportation in the
development and administration of the Small and Emerging Contractor
Technical Assistance Program established pursuant to Article 2.6
(commencing with Section 14137) of Chapter 2 of Part 5.
12098.4. (a) Each agency of the state shall furnish to the
advocate the reports, documents, and information that are public
records and that the director deems necessary to carry out his or her
functions under this chapter.
(b) The advocate shall prepare and submit a written annual report
to the Governor and to the Legislature that describes the activities
and recommendations of the office.
(c) The advocate may establish a centralized interactive telephone
referral system to assist small and minority businesses in their
operations, including governmental requirements, such as taxation,
accounting, and pollution control, and to provide information
concerning the agency from which more specialized assistance may be
obtained. The advocate may establish and advertise a telephone number
to serve this centralized interactive telephone referral system.
12098.5. In addition to his or her other responsibilities under
this article, the advocate shall do the following:
(a) Develop on the office's Internet Web site, and update as
necessary, a handbook about emergency preparedness, responses to
emergencies, and recovery strategies for small businesses.
(b) Conduct at least one public meeting every year to share best
practices for small business disaster preparedness. The meetings
shall be held in consultation with regional and statewide small
business organizations and shall take place in different locations
throughout the state.
SEC. 2. Section 15570 of the Government Code is amended to read:
15570. (a) The secretary shall lead the preparation of a biennial
California Economic Development Strategic Plan. In fulfilling this
duty, the secretary shall do the following:
(1) Review the recommendations made by the California Economic
Strategy Panel in their biennial economic development strategic plan
document. This document shall make recommendations regarding an
economic development strategic plan for the state, covering a
two-year time period and containing a statement of economic goals for
the state, a prioritized list identifying significant issues learned
from economic development strategic plan panel meetings, proposals
for legislation, regulations, and administrative reforms necessary to
improve the business climate and economy of the state, evaluation of
the effectiveness of the state's economic development programs, a
list of key industries in which the state shall focus its economic
development efforts, and strategies to foster job growth and economic
development covering all state agencies, offices, boards, and
commissions that have economic development responsibilities.
(2) Convene a biennial economic strategy panel to provide
recommendations regarding a California economic development strategic
plan. This panel shall conduct meetings in Sacramento, all cities of
the state with populations over 500,000, and in major cities of
other regions of California as designated by the secretary. The
secretary shall invite businesses, labor unions, organizations
representing the interests of diverse ethnic and gender groups, local
government leaders, academic economists and business professors,
chambers of commerce and other business organizations, government
agencies, and key industries to contribute to the preparation of the
recommended economic strategy. These meetings shall address at least
the following matters of concern:
(A) Strengths and weaknesses of the California economy and the
state's prospects for future economic prosperity.
(B) Existing, emerging, and declining industries in California and
elsewhere.
(C) Effectiveness of California's economic development programs in
creating and retaining jobs and attracting industries.
(D) Adequacy of state and local physical and economic
infrastructure.
(E) Government impediments to economic development.
(F) The development of a system of accountability for use in the
annual state budget process and in the legislative process to measure
the performance of all state policies, programs, and tax
expenditures intended to stimulate the economy. In developing a
system of accountability, the panel shall, by using only existing
resources and without future budget augmentation made for this
purpose, do all of the following:
(i) Develop a standard definition of economic development.
(ii) Develop, for use in state law, standard measurements of real
per capita income, job growth and retention, new business creation,
private sector investment, minority entrepreneurship, and income
inequality.
(iii) Survey and evaluate efforts in other states to develop
accountability measures for public investments in economic
development.
(iv) Determine whether a return on investment calculation is
feasible for public investments in economic development.
(v) Conduct a comparative study of various methodologies for
preparing the economic development sections of a state budget,
including unified functional budget, zero-based budget, and
performance-based budget methodologies.
(vi) Study the feasibility of statutory disclosure requirements on
specified publicly funded subsidies to private sector businesses.
(vii) After the biennial economic strategy panel has been convened
and its meetings are conducted, submit a report of its findings and
recommendations regarding this subparagraph to the Legislature and
the Governor's Office of Economic Development.
(b) The panel shall be composed of the following 15 members:
(1) The Secretary of Labor and Workforce Development, who shall
serve as chair of the panel.
(2) Eight persons appointed by the Governor.
(3) The Speaker of the Assembly or his or her designee.
(4) The President pro Tempore of the Senate or his or her
designee.
(5) The Minority Leader of the Assembly or his or her designee.
(6) The Minority Leader of the Senate or his or her designee.
(7) One person appointed by the Speaker of the Assembly.
(8) One person appointed by the Senate Committee on Rules.
(c) The panel shall be representative of state government,
business, labor, finance, and academic institutions, and shall be
broadly reflective of the state's population as to gender, ethnicity,
and geographic residence within California.
At least one-half of all the persons on the panel shall be from
the private sector and at least two appointments shall be from
private businesses with less than 50 employees. At least two
appointments shall be from rural areas of the state. Beginning
January 1, 2004, appointments to the panel shall be for four-year
terms, except that the Governor's appointments made pursuant to
paragraph (2) of subdivision (b) shall be made as follows:
(1) Four members shall be appointed on January 1, 2004, and every
four years thereafter.
(2) Four members shall be appointed on January 1, 2004, for a
two-year term.
(3) Upon the expiration of the initial appointments made pursuant
to paragraph (2), four members shall be appointed on January 1, 2006,
and every four years thereafter.
(d) The secretary shall deliver copies of the economic strategy
panel's recommended California economic development strategic plan to
every constitutional officer, legislator, member of the Governor's
cabinet, members of the economic development strategic plan panel,
and every state agency, office, board, and commission having economic
development responsibilities.
(e) In each succeeding two-year cycle, the secretary shall
undertake this process anew, so as to update the economic strategy on
or before October 31 of each succeeding second year.
SEC. 3. Article 7 (commencing with Section 65054) of Chapter 1.5
of Division 1 of Title 7 of the Government Code is repealed.
