BILL NUMBER: AB 1606	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 5, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 7, 2007
	AMENDED IN SENATE  AUGUST 31, 2007
	AMENDED IN SENATE  JULY 16, 2007
	AMENDED IN ASSEMBLY  JUNE 1, 2007
	AMENDED IN ASSEMBLY  APRIL 30, 2007

INTRODUCED BY   Assembly Members Arambula and Lieu

                        FEBRUARY 23, 2007

   An act to amend Sections 13998.5 and 15570 of, and to add Sections
13984.3 and 15570.2 to, the Government Code, relating to the
California Economic Strategy Panel.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1606, Arambula. The California Economic Strategy Panel: state
economic development strategy.
   Existing law requires the Secretary of Labor and Workforce
Development to convene a biennial economic strategy panel, which
includes specified appointed members, for purposes of providing
recommendations regarding a California Economic Development Strategic
Plan and to review those recommendations made by the panel in its
biennial economic development strategic plan document, as specified.
Existing law requires the panel to address various specified matters
of concern, including 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. Existing law
also requires the panel to submit a report of its findings and
recommendations to the Legislature no later than one year after its
first meeting after January 1, 2005.
   This bill would require the Secretary of Labor and Workforce
Development to collaborate with the Secretaries of Business,
Transportation and Housing and of Food and Agriculture in leading the
preparation of a California Economic Development Strategic Plan and
convening a California Economic Strategy Panel, as provided. The bill
would modify the composition of the California Economic Strategy
Panel by adding the Secretary of Business, Transportation and
Housing, the Secretary of Food and Agriculture, and the Director of
the Office of the Small Business Advocate, as members of the panel.
    The bill would also include a review of significant industries
and business clusters in each of the state's 9 regional economies
within the matters of concern to be addressed in the panel's
meetings.
   The bill would require the panel, as part of its deliberations on
the plan, to consult with other state entities, including the Office
of Military and Aerospace Support, the California Commission on
Industrial Innovation, the California Transportation Commission, the
California Community Colleges, the University of California, the
California State University, the Workforce Investment Board, the
Employment Training Panel, and the Energy Resources Conservation and
Development Commission.
   The bill would require the panel, as part of its deliberations on
the plan, to include the findings and recommendations of the most
recent version of the State Transportation Plan, including those
portions related to trade infrastructure and goods movement, and the
findings and recommendations of the most recent international trade
and foreign investment strategy.
    The bill would also revise and restructure provisions relating to
the panel's review of the recommendations made in its economic
development strategic plan document, as provided, and would require
the panel to deliver copies of the recommended economic development
plan, and to submit a biennial report of the activities of the panel
during the preceding 12 months, to the Governor, the Chief Clerk of
the Assembly, and the Secretary of the Senate for a distribution to
the relevant policy and fiscal committees, as specified. The bill
would require the plan to be updated and submitted every 5 years,
rather than biennially.
    The bill would also require the Secretary of Business,
Transportation and Housing, with the assistance of the panel, to
develop a strategy to attract new private investment to the state, as
provided, and, by October 1, 2009, to submit the private investment
strategy to the Governor, the Chief Clerk of the Assembly, and the
Secretary of the Senate.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13984.3 is added to the Government Code, to
read:
   13984.3.  (a) The Secretary of Business, Transportation and
Housing, working with the California Economic Strategy Panel, shall
develop a strategy to attract new private investment to the state.
   (b) The secretary may hold business roundtables and conferences,
and use other devices he or she deems appropriate to engage leaders
in the business, industry, investment, and community development
sectors, to develop the strategy.
   (c) (1) In addition to any other group or entity that the
secretary chooses to consult in preparation of the private investment
strategy developed pursuant to subdivision (a), the secretary shall
consult with key private investment partners assisting in the
development and implementation of the strategy.
   (2) For purposes of this section, "key private investment partners"
includes, but is not limited to, representatives from the banking
and insurance industries, foundations, corporate and public pension
funds, venture capital funds, community development financial
institutions, and community development corporations. "Key private
investment partners" may include foreign and out-of-state, as well as
California-based, entities.
   (3) The Business, Transportation and Housing Agency shall use the
California Economic Development Strategic Plan prepared pursuant to
Section 15570 to facilitate the development of the implementation of
the strategy.
   (d) The private investment strategy shall do all of the following:

   (1) Assess current trends and opportunities in global and domestic
investment practices.
   (2) Assess the unique investment needs of banks, insurance
companies, pension funds, and high wealth individuals. The assessment
shall also include a review of the investment needs of early stage
private equity investors.
   (3) Assess the state's positive and negative qualities as a place
to invest.
   (4) Identify specific capital access needs of businesses,
including small businesses, and industries by economic region.
   (5) Identify areas of the state that have historically been
underserved, but are currently in the process of becoming successful
emerging domestic markets.
   (6) Identify programs, services, tax incentives, or actions taken
by other state governments or the federal government that could be
used by this state in attracting foreign investment and facilitating
wealth creation and low-income neighborhood revitalization.
   (7) Identify and evaluate existing programs, services,
regulations, and incentives that are used, or could be used, to
attract foreign and domestic private investment.
   (8) Identify opportunities to facilitate community-based efforts
to revitalize low-income neighborhoods in the state through increased
private investment.
   (9) Make other recommendations to further the state's interest in
attracting private investment, including changes in applicable
regulations and statutes.
   (10) Propose short-term and long-term strategies for this state to
attract more foreign and domestic investments including, but not
limited to, investments in historically underserved communities,
small businesses, and emerging industries and technologies.
   (e) The private investment strategy may be prepared in conjunction
with, and submitted as part of, the California Economic Development
Strategic Plan prepared pursuant to Sections 15570 and 15570.2. The
private investment strategy shall be consistent with the provisions
of the California Economic Development Strategic Plan.
   (f) By October 1, 2009, the secretary shall submit the private
investment strategy to the Governor, the Chief Clerk of the Assembly,
and the Secretary of the Senate, where it shall be distributed to
the relevant policy and fiscal committees. The private investment
strategy shall be updated not less than once every four years.
  SEC. 2.  Section 13998.5 of the Government Code is amended to read:

   13998.5.  The Office of Military and Aerospace Support shall do
all of the following:
   (a) Develop and recommend to the Governor and the Legislature a
strategic plan for state and local defense retention and conversion
efforts. The plan shall address the state's role in assisting
communities with potential base closures and those impacted by
previous closures. The office may coordinate with the California
Economic Strategy Panel and other state agencies, local groups, and
interested organizations on this strategic plan to retain current
Department of Defense installations, facilities, bases, and related
civilian activities.
   (b) Conduct outreach to entities and parties involved in defense
retention and conversion across the state and provide a network to
facilitate assistance and coordination for all defense retention and
conversion activities within the state.
   (c) Help develop and coordinate state retention advocacy efforts
on the federal level.
   (d) (1) Conduct an evaluation of existing state retention and
conversion programs and provide the Legislature recommendations on
the continuation of existing programs, including, but not limited to,
the possible elimination or alteration of those programs. This
evaluation shall be transmitted to the Legislature.
   (2) The office may provide recommendations to the Legislature on
the necessity of new programs for defense retention and adequate
funding levels.
   (e) Utilize and update the plan prepared by the Defense Conversion
Council as it existed on December 31, 1998, to minimize California's
loss of bases and jobs in future rounds of base closures. This plan
shall include, but not be limited to, all of the following:
   (1) Identification of major installations in California.
   (2) Determination of how best to defend existing bases and base
employment in this state.
   (3) Coordination of retention activities with communities that may
face base closures.
   (4) Development of data and analyses on bases in this state.
   (5) Coordination with the congressional delegation, the
Legislature, and the Governor. With the consent of the appropriate
authority, the office may temporarily borrow technical, policy, and
administrative staff from other state agencies, including the
Legislature.
   (f) Serve as the primary state liaison with the Department of
Defense and its installations in this state. In order to maximize the
mission use of the installations, the Office of Military and
Aerospace Support shall assist in resolving any disputes or issues
between the Department of Defense and state entities.
   (g) Review actions or programs by state agencies that may affect
or impact Department of Defense installations or the state's military
base retention and reuse activities and recommend to the Governor
and the Legislature actions that may be taken to resolve or prevent
similar problems in the future.
   (h) Conduct outreach to entities and parties involved in the
aerospace industry and associated basic and applied research, and
provide a network to facilitate assistance and coordination for
activities designed to promote, foster, and increase aerospace
enterprise in California pursuant to subdivision (a) of Section
13999.2.
   (i) Assist the California Economic Strategy Panel in the
development of the California Economic Development Strategic Plan by
helping to identify the needs of communities impacted by closed
military bases and the economic development opportunities provided by
the aerospace industry.
   (j) Where funds and resources are available, the office may
undertake all of the following activities:
   (1) Provide a central clearinghouse for all base retention or
conversion assistance activities, including, but not limited to,
employee training programs and regulation review and permit
streamlining.
   (2) Provide technical assistance to communities with potential or
existing base closure activities.
   (3) Provide a central clearinghouse for all defense retention and
conversion funding, regulations, and application procedures for
federal or state grants.
   (4) Serve as a central clearinghouse for input and information,
including needs, issues, and recommendations from businesses,
industry representatives, labor, local government, and communities
relative to retention and conversion efforts.
   (5) Identify available state and federal resources to assist
businesses, workers, communities, and educational institutions that
may have a stake in retention and conversion activities.
   (6) Provide one-stop coordination, maintain and disseminate
information, standardize state endorsement procedures, and develop
fast-track review procedures for proposals seeking state funds to
match federal defense conversion funding programs.
   (7) Maintain and establish databases in such fields as
defense-related companies, industry organization proposals for the
state and federal defense industry, community assistance, training,
and base retention, and provide electronic access to the databases.
  SEC. 3.  Section 15570 of the Government Code is amended to read:
   15570.  (a) The Secretary of Labor and Workforce Development,
working in collaboration with the Secretaries of Business,
Transportation and Housing, and of Food and Agriculture, shall lead
the preparation of a California Economic Development Strategic Plan.
In fulfilling this duty, the secretaries shall meet all the
requirements of this section.
   (b) The Secretary of Labor and Workforce Development shall convene
a California Economic Strategy Panel to provide recommendations
regarding the development of the California Economic Development
Strategic Plan.
   (c) (1) The 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 secretaries.
   (2) The Secretary of Labor and Workforce Development, working in
collaboration with the Secretaries of Business, Transportation and
Housing, and of Food and Agriculture, 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 provide
advice on economic development issues and to contribute to the
preparation of the recommended economic strategy.
   (d) As part of its deliberations on the California Economic
Development Strategic Plan, the panel shall, at a minimum, assess the
following:
   (1) Strengths and weaknesses of the California economy and the
state's prospects for future economic prosperity.
   (2) Significant industries and business clusters in each of the
state's nine regional economies, including those that are emerging or
declining.
   (3) Emerging and declining industries in other states and around
the world.
   (4) Effectiveness of California's economic development programs in
creating and retaining jobs and attracting industries.
   (5) Adequacy of state and local physical and economic
infrastructure, including workforce development capacity.
   (6) Government impediments to economic development.
   (e) As part of its deliberations on the California Economic
Development Strategic Plan, the panel shall, at a minimum, consult
with other state entities, including, but not limited to, the Office
of Military and Aerospace Support, the California Commission on
Industrial Innovation, the California Transportation Commission, the
California Community Colleges, the University of California, the
California State University, the Workforce Investment Board, the
Employment Training Panel, and the State Energy Resources
Conservation and Development Commission.
   (f) As part of its deliberations on the California Economic
Development Strategic Plan, the panel shall, at a minimum, review and
include, as appropriate, any of the following:
   (1) The findings and recommendations of the most recent version of
the State Transportation Plan, including those portions related to
trade infrastructure and goods movement.
   (2) The findings and recommendations of the most recent
international trade and foreign investment strategy.
   (g) The panel shall be composed of the following 18 members:
   (1) The Secretary of Labor and Workforce Development, who shall
serve as the chairperson of the panel.
   (2) The Secretary of Business, Transportation, and Housing.
   (3) The Secretary of Food and Agriculture.
   (4) Eight persons appointed by the Governor, at least one of whom
shall have a background in local economic development.
   (5) The Speaker of the Assembly or his or her designee.
   (6) The President pro Tempore of the Senate or his or her
designee.
   (7) The Minority Leader of the Assembly or his or her designee.
   (8) The Minority Leader of the Senate or his or her designee.
   (9) One person appointed by the Speaker of the Assembly.
   (10) One person appointed by the Senate Committee on Rules.
   (11) The Director of the Office of the Small Business Advocate.
   (h) (1) Members of the panel shall be representatives of state
government, business, economic developers, labor, finance, and
academic institutions, and shall be broadly reflective of the state's
population as to gender, ethnicity, and geographic residence within
California.
   (2) 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.
   (i) Beginning January 1, 2004, appointments to the panel shall be
for four-year terms, except that the Governor's appointments made
pursuant to paragraph (4) of subdivision (h) 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.
   (j) The panel shall deliver copies of the recommended California
Economic Development Strategic Plan to the Governor, the Chief Clerk
of the Assembly, and the Secretary of the Senate, where it shall be
distributed to the relevant policy and fiscal committees. The report
shall also be posted on the Internet Web sites of the panel and of
each of the secretaries.
   (k) Beginning in October 2008, and in each succeeding five-year
cycle, the panel shall update and submit the California Economic
Development Strategic Plan, on or before October 31 of the fifth year
of each cycle.
   (l) Beginning in January 2009, the panel shall submit a biennial
report on the preceding 12 months of activities of the California
Economic Strategy Panel to the Chief Clerk of the Assembly and the
Secretary of the Senate where it shall be distributed to the relevant
policy and fiscal committees. The report shall be submitted by
October 31 of each succeeding second year.
  SEC. 4.  Section 15570.2 is added to the Government Code, to read:
   15570.2.  (a) The California Economic Development Strategic Plan
shall provide analysis and make strategic recommendations to support
the sustainable economic growth of the state. The plan shall include
short-term, mid-term, and long-term recommendations.
   (b) The California Economic Development Strategic Plan shall
include, but not be limited to, all of the following:
   (1) A statement of economic goals for the state.
   (2) An assessment of the regional, state, national, and global
economic trends that affect California's economy.
   (3) An assessment of the needs of business and industry,
especially small size companies, to grow and prosper in California.
   (4) An evaluation of the effectiveness of the state's economic and
workforce development programs.
   (5) A prioritized list of significant short-term and mid-term
issues gathered from, among other activities, California Economic
Strategy Panel meetings, regional outreach meetings, and
contributions from key stakeholder groups.
   (6) A list of current and emerging key industries, by region, in
which the state shall focus its economic development efforts.
   (7) Proposals for legislation, regulations, and administrative
reforms necessary to improve the business climate and economy of the
state.
   (8) A process that can be used to track and report on the
implementation and success of the plan.
   (9) Short-term, mid-term, and long-term strategies to encourage
job growth and economic development in this state created by state
agencies, offices, boards, and commissions responsible for economic
development.
   (c) This section does not limit the scope of the plan. The state's
economic development strategy shall be a comprehensive document that
guides state activities and supports the immediate and long-term
economic growth of the state.
   (d) The plan shall be consistent with the goals and objectives in
the California Environmental Goals and Policy Report. The plan shall
provide guidance to all state agencies, departments, boards, and
commissions that develop plans, strategies, and other planning
documents related to infrastructure and economic and workforce
development.