BILL NUMBER: AB 1107 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 28, 2007
AMENDED IN SENATE JULY 11, 2007
AMENDED IN ASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY APRIL 11, 2007
INTRODUCED BY Assembly Member Arambula
FEBRUARY 23, 2007
An act to amend Sections 15570 and 65072 of, and to add Section
15571 to, the Government Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1107, as amended, Arambula. Goods movement: small businesses
and microenterprises.
Existing law requires the Department of Transportation to prepare
the California Transportation Plan, which contains policy,
strategies, and recommendations elements. Existing law requires the
Secretary of Labor and Workforce Development to lead the preparation
of a biennial California Economic Development Strategic Plan with
various elements relative to promoting economic development. Existing
law requires $2 billion of the funds made available pursuant to the
Highway Safety, Traffic Reduction, Air Quality, and Port Security
Bond Act of 2006, approved by the voters at the November 7, 2006,
statewide general election, to be allocated by the California
Transportation Commission for trade corridor improvement projects in
consultation with the Goods Movement Action Plan prepared by the
Business, Transportation and Housing Agency and the California
Environmental Protection Agency.
This bill would require the California Small Business Board,
within the Business, Transportation and Housing Agency, in support of
the preparation of the California Economic Development Strategic
Plan and of the California Transportation Plan, and in collaboration
with the Labor and Workforce Development Agency and the Department of
Food and Agriculture, to perform an assessment of shipping needs and
practices of small businesses and microenterprises, and to prepare a
report to be submitted to the Governor and the Legislature by
January 1, 2009, containing various assessments and recommendations
in that regard. The bill would require updates to the California
Transportation Plan to take into account these findings and
recommendations. The bill would also require the Secretary of Labor
and Workforce Development, in leading the preparation of the
California Economic Development Strategic Plan, to consider
incorporating in the plan those findings and recommendations, among
others.
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. The Legislature finds and declares all of the
following:
(a) Small businesses and microenterprises form the core of
California's $1.4 trillion economy. They comprise more than 90
percent of all businesses and are responsible for employing more than
50 percent of all workers in the state, and account for nearly 64
percent of all new employment growth. Small businesses and
microenterprises are a major engine driving California's economy and
economic development.
(b) The Business, Transportation and Housing Agency and the
California Environmental Protection Agency have prepared a statewide
Goods Movement Action Plan to guide the allocation of $3.1 billion
from the Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Chapter 12.49 (commencing with Section
8879.20) of Division 1 of Title 2 of the Government Code). The Goods
Movement Action Plan identifies solutions among California's goods
movement corridors to reduce congestion and accommodate the expansion
of trade between this state and the rest of the world, and was
developed to promote economic growth, encourage the creation of new
high-paying jobs, and address environmental challenges posed by goods
movement activities.
(c) The Department of Transportation, pursuant to Section 65072 of
the Government Code, periodically updates the California
Transportation Plan, which contains goods movement strategies.
(d) In recognition of the important contribution that small
businesses and microenterprises make to California's economy and
economic development, it is in the state's best interest to assess
both the goods movement needs of those entities and the role they
play in goods movement activities within the context of the Goods
Movement Action Plan's proposals.
(e) It is the intent of the Legislature that the
Secretary of Business, Transportation and Housing, the Secretary of
Labor and Workforce Development, and the Department of Food and
Agriculture California Small Business Board, within
the Business, Transportation and Housing Agency, in collaboration
with the Labor and Workforce Development Agency and the Department of
Food and Agriculture, report on the needs and opportunities of
small businesses and microenterprises in goods movement for the
purposes of maintaining the vitality of these entities, supporting
state and regional economic development, enhancing the Goods Movement
Action Plan, updating the California Transportation Plan, and
assisting the process of making decisions regarding the allocation of
funds from the Highway Safety, Traffic Reduction, Air Quality, and
Port Security Fund of 2006.
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, in
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 governmental 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 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.
(3) Review the recommendations made by the California Small
Business Board pursuant to Section 15571 and consider incorporating,
in the biennial plan required by this section, the findings and
recommendations made in the Goods Movement Action Plan and the
findings and recommendations made pursuant to Section 15571.
(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 of 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. Section 15571 is added to the Government Code, to read:
15571. (a) In support of the preparation of the California
Economic Development Strategic Plan pursuant to Section 15570, and in
support of the preparation of the California Transportation Plan
pursuant to Section 65072, the California Small Business Board,
within the Business, Transportation and Housing Agency, shall, in
collaboration with the Labor and Workforce Development Agency and the
Department of Food and Agriculture, do both of the following:
(1) Perform an assessment of all of the following:
(A) The extent to which the proposals recommended by the Goods
Movement Action Plan adequately accommodate the goods movement needs
of small businesses and microenterprises on a statewide and regional
basis.
(B) The extent to which the goods movement strategies in the
California Transportation Plan consider the goods movement needs of
small businesses and microenterprises.
(C) Additional proposals that may need to be incorporated in the
Goods Movement Action Plan and the California Transportation Plan to
address the goods movement needs of small businesses and
microenterprises on a statewide and regional basis.
(D) Statewide and regional opportunities for small businesses and
microenterprises to participate in the state's goods movement
logistics sector, including a review of how these entities may assist
in the implementation of environmental justice policies of goods
movement.
(2) Report on all of the following:
(A) The characteristics of goods movement practices of small
businesses and microenterprises.
(B) The priority goods movement needs of small businesses and
microenterprises.
(C) The ways in which small businesses and microenterprises
participate in the goods movement logistics industry.
(D) The ways and extent to which California's goods movement
industry currently accommodates the goods movement needs of small
businesses and microenterprises.
(E) The extent to which the proposals in the Goods Movement Action
Plan will assist and benefit small businesses and microenterprises
in this state.
(F) Recommendations for additional measures that can be
incorporated into the Goods Movement Action Plan to improve the
competitive position and vitality of this state's small businesses
and microenterprises.
(G) Recommendations on how state economic development programs, in
order to help implement the proposals contained in the Goods
Movement Action Plan, can promote the participation of small
businesses and microenterprises in goods movement activities.
(b) The report prepared pursuant to this section shall be
submitted on or before January 1, 2009, to the Governor, and to the
Secretary of the Senate and the Chief Clerk of the Assembly for
distribution to the relevant policy and fiscal committees.
SEC. 4. Section 65072 of the Government Code is amended to read:
65072. The California Transportation Plan shall include all of
the following:
(a) A policy element that describes the state's transportation
policies and system performance objectives. These policies and
objectives shall be consistent with legislative intent described in
Sections 14000, 14000.5, and 65088.
(b) A strategies element that shall incorporate the broad system
concepts and strategies synthesized from the adopted regional
transportation plans prepared pursuant to Section 65080. The
California Transportation Plan shall not be project specific.
(c) A recommendations element that includes economic forecasts and
recommendations to the Legislature and the Governor to achieve the
plan's broad system concepts, strategies, and performance objectives.
(d) Updates to the California Transportation Plan shall take into
account findings and recommendations made pursuant to Section 15571.