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 MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member John A. Perez
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 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. Office of Economic
Development.
Existing
(1) 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 administered by a
secretary director 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 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
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 .
(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.
Vote: majority. Appropriation: no. Fiscal committee: 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)
(a) "Office" means the Office of Economic Development.
(c) "Plan" means the Economic Development Strategic Plan.
(d) "Secretary" means the Secretary
(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 secretary,
director, who shall be responsible to the
Governor.
(b) The Governor shall appoint the Secretary
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 Secretary 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 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
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
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. 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
secretary 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. 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
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.
(f) In implementing the program, the secretary
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 8. 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 that
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, no later than July 1, 2008, at least three public
meetings, and one public meeting every other year thereafter, to
(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. Chapter 3 (commencing with Section
15570) of Part 8.5 of Division 3 of Title 2 of the Government Code is
repealed.
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) 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, 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) Submit 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 no later than one year
after its first meeting after January 1, 2005 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.
