Bill Text: CA AB2734 | 2009-2010 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Amended.html
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-Amended.html
BILL NUMBER: AB 2734 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member John A. Perez
FEBRUARY 19, 2010
An act to relating to state government. An
act to add Chapter 1.6 (commencing with Section 12096) to Part 2 of
Division 3 of Title 2 of, and to repeal Chapter 3 (commencing with
Section 15570) of Part 8. 5 of, and 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, as amended, John A. Perez. California Business
Investment Services. Office of Economic Development.
Existing law provides for various state programs and services for
the purpose of attracting and retaining businesses in this state.
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 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 directed by a secretary appointed by the Governor. The bill
would require that the office serve the Governor as the lead entity
for economic strategy and 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 also create the Economic Development
Council within the office, and the council would, in conjunction with
the office, prepare the Economic Development Strategic Plan, as
specified, to guide the state's activities and investments related to
economic and workforce development, among other things. The bill
would establish certain requirements regarding the composition of the
membership of the council. The bill would create the California
Business Investment Services Program, as specified, within the
office, under the authority of the secretary, 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 repeal provisions
regarding the biennial California Economic Development Strategic Plan
and the California Economic Strategy Panel, described above, and
move the Office of Small Business Advocate to the Office of Economic
Development
This bill would declare the intent of the Legislature to enact
legislation that would codify the existence of, and establish
responsibilities for, the California Business Investment Services
program, which is currently operated by the Labor and Workforce
Development Agency.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
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, and clean and green technology.
(7) Its access to world-class research and educational
institutions.
(c) It is the 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 for entrepreneurs
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'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) "Council" means the Economic Development Council.
(b) "Office" means the Office of Economic Development.
(c) "Plan" means the Economic Development Strategic Plan.
(d) "Secretary" means the Secretary 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 secretary, who shall be
responsible to the Governor.
(b) The Governor shall appoint the Secretary 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 Secretary 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 marketing of California on issues relating
to business development, private sector investment, and economic
growth. In this capacity the office shall:
(a) In conjunction with the council, prepare a five-year plan, as
described in Section 12096.6, to guide the state's activities and
investments related to economic and workforce development, and
maintain an Internet Web site for public dissemination of the plan
and other information.
(b) In conjunction with the council, recommend to the Governor and
the Legislature new state policies, programs, and actions, or
amendments to existing programs, as required, 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.
(c) Assist the Department of Finance in preparing, as part of the
annual state budget, an integrated program of priority actions to
achieve statewide economic goals and objectives and take other
actions to ensure that the program budget, submitted annually to the
Legislature, contains information reporting the achievement of state
economic goals and objectives by departments and agencies of state
government.
(d) 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.
(e) 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.
Article 5. Economic Development Council
12096.5. (a) The Economic Development Council is hereby created
within the office for the purpose of developing a vision for economic
growth and a strategic plan that leverages the state's economic
development programs with local, regional, federal, public, and
private efforts. The council may make policy as well as fiscal
recommendations to the Governor and the Legislature on issues related
to economic and workforce development.
(b) Membership of the council is as follows:
(1) The secretary, who shall serve as the chairperson of the
council.
(2) The Secretary of Labor and Workforce Development.
(3) The Secretary of Business, Transportation and Housing.
(4) The Secretary of Food and Agriculture.
(5) Four persons appointed by the Governor.
(6) One person appointed by the Speaker of the Assembly.
(7) One person appointed by the Senate Committee on Rules.
(8) The Director of the Office of Small Business Advocate.
(c) (1) The four persons appointed by the Governor shall broadly
reflect the state's population as to gender, ethnicity, and
geographic residence, and each appointee shall represent at least one
of the following categories:
(A) Local government.
(B) Small business.
(C) Manufacturing.
(D) Workforce development.
(E) Economic development.
(F) Labor.
(G) Finance.
(H) Academic institutions.
(2) At least six members of the council shall be from the private
sector of the economy and at least one appointment shall be from a
rural area of the state.
(3) Beginning January 1, 2011, appointments to the council shall
be for four-year terms, except that the Governor's appointments made
in the first year shall be made as follows:
(A) Two members shall be appointed on January 1, 2011, and every
four years thereafter.
(B) Two members shall be appointed on January 1, 2011, for a
two-year term.
(d) Vacancies in the council membership shall be filled in the
same manner provided for the original appointment.
(e) The council shall meet on call of the secretary, who shall
convene at least two public council meetings during each year.
(f) Council members shall serve without compensation, but they may
be reimbursed for actual expenses incurred in connection with their
duties.
Article 6. Economic Development Strategic Plan
12096.6. (a) By July 15, 2011, the secretary, in partnership with
the council shall prepare the Economic Development Strategic Plan.
(b) The plan shall include, at a minimum, the following
components:
(1) Policy goals, objectives, and recommendations required to
implement a comprehensive economic and workforce development
strategic plan for the state.
(2) Measurable outcomes and timelines for implementing the goals,
objectives, and recommendations for the strategic plan.
(3) Identification of impediments to achieving the goals,
objectives, and recommendations described in paragraph (1).
(4) Identification of key stakeholder partnerships to use in
implementing the plan.
(5) Identification of options for funding the goals, objectives,
and recommendations described in paragraph (1).
(6) Identification of an organizational structure, including
global logistical and Internet-based networks, for the implementation
of the policies, programs, and services recommended in the plan.
(c) In developing the plan, the secretary and council shall, at a
minimum, assess the following factors:
(1) Strengths and weaknesses of the California economy within a
regional, national, and global context.
(2) Current and emerging trends, industries, and services in
different regions of the state.
(3) Effectiveness of California's economic and workforce
development programs in creating and retaining jobs, providing 21st
century workforce skills, and attracting industries providing
employment within the state's core and emerging industries.
(4) Government and marketplace impediments to economic
development.
(5) The unique opportunities and challenges in developing
businesses and attracting investment along the state's border areas
and in emerging domestic markets.
(6) As part of its deliberations in preparing the plan, the
secretary and council shall consult with other public and private
entities they deem necessary and appropriate.
(7) The secretary and council shall review the plan within five
years of the date it was prepared, and every five years thereafter,
and update the plan as the secretary deems appropriate. Nothing in
this subdivision prohibits the secretary from reviewing or updating
the plan more frequently.
(8) The secretary shall post the plan on the office's Internet Web
site.
Article 7. 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
secretary.
(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. Among
other things, the program shall provide:
(1) Economic and demographic data.
(2) Financial information to help link businesses with state and
local public and private programs.
(3) Workforce information including 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 California.
(d) The program shall have 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.
(e) In implementing the program, the secretary 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.
(f) In implementing the program, the secretary 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 8. 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 that 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, no later than July 1, 2008, at least three public
meetings, and one public meeting every other year thereafter, 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. Chapter 3 (commencing with Section 15570)
of Part 8.5 of Division 3 of Title 2 of the Government
Code is repealed.
SEC. 3. Article 7 (commencing with Section 65054)
of Chapter 1.5 of Division 1 of Title 7 of the Government
Code is repealed.
SECTION 1. It is the intent of the Legislature
to enact legislation that would codify the existence of, and
establish responsibilities for, the California Business Investment
Services program, which is currently operated by the Labor and
Workforce Development Agency.
