BILL NUMBER: AB 2711 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2008
AMENDED IN ASSEMBLY APRIL 10, 2008
INTRODUCED BY Assembly Members Portantino, Arambula, Price, and
Salas
( Coauthors: Assembly Members
Caballero, Garcia, and Silva )
FEBRUARY 22, 2008
An act to amend Section 13998.10 of, and to repeal and add Chapter
2 (commencing with Section 13996) of Part 4.7 of Division 3 of,
Title 2 of the Government Code, relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2711, as amended, Portantino. Economic development.
(1) Existing law establishes the Manufacturing Technology Program
within the Business, Transportation and Housing Agency to award
grants and technical assistance to nonprofit organizations and public
agencies to assist manufacturing technology. Under existing
law, government and private economic development funds are deposited
into the California Economic Development Fund, and upon appropriation
by the Legislature, these funds may be expended by the Secretary of
Business, Transportation and Housing for economic development
purposes.
This bill would delete those the
Manufacturing Technology Program provisions and would instead
require the Secretary of Business, Transportation and Housing to
serve as a facilitator of high technology businesses, developers, and
investors , ; to complete a study and
submit it to the Legislature on or before July 1, 2009, on the
competitiveness of California's businesses in technology and
innovation , ; and to prepare a
strategy for technology and innovation and submit it to the
Legislature on or before February 1, 2010. The bill would require the
Legislature to hold a hearing on the strategy, and would require the
secretary to report annually on the ways in which the Governor's
proposed budget relates to it the strategy
and to periodically update the study and strategy. The bill
would require the secretary to develop a state innovation and
technology policy based on the study and strategy submitted to the
Legislature. The bill would require the secretary to notify the
Legislature if he or she is unable to complete the study or strategy
by the requisite due date because of a lack of funding and to
estimate a date by which the study or strategy will be completed. The
bill would authorize the Director of Finance to accept monetary
gifts for the cost of developing and updating the study, strategy,
and policy, which would be deposited in the California
Economic Development Fund, and would require the director to record
each gift and to file a copy of the record with the
Business, Transportation and Housing Agency.
(2) Existing law, the Military and Aerospace Support Act,
establishes the Office of Military and Aerospace Support and requires
the office to conduct specific defense retention and conversion
activities. Under existing law, the provisions of the act are
repealed on January 1, 2009.
This bill would extend the duration of the act to January 1, 2012.
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. This act shall be known and may be cited as the
California Innovation and Technology Policy Act.
SEC. 2. The Legislature finds and declares all of the following:
(a) California is the eighth largest economy in the world, with a
gross state product of over $1.7 trillion. The state's significance
in the global marketplace results from a variety of factors,
including its strategic west coast location that provides direct
access to the growing markets in Asia; its diverse regional
economies; its large, ethnically diverse population that provides
both a ready workforce and a significant consumer base; its access to
a wide variety of venture and other private capital; its broad base
of small- and medium-size businesses; and its culture of innovation
and entrepreneurship, particularly in the area of high technology.
(b) In general, California is well-positioned to take advantage of
the new technologies and innovations. However, other states and
foreign countries are also vying for domination of current and
emerging technology industries. Connecticut, Massachusetts, Texas,
New Mexico, New York, New Jersey, Florida, and Pennsylvania all have
proactive economic policies. Europe and Asia are also successfully
building technology clusters, and Germany and Japan have already
surpassed California's once leading position in solar and wind energy
through targeted policies and initiatives.
(c) California could lose its pivotal global role in the design
and manufacture of technologies without implementing its own,
proactive, aggressive, and comprehensive strategy for supporting
California's technology-based industries, including, but not limited
to computers, commercial space, biotech, cleantech, and nanotech.
(d) Supporting the state's technology economy will require the
state to increase its investment in the human and physical
infrastructure necessary to support this type of innovation.
(e) California's innovation and technology policy should be
regularly updated to reflect emerging business trends and the
changing needs of California's businesses and workers.
SEC. 3. Chapter 2 (commencing with Section 13996) of Part 4.7 of
Division 3 of Title 2 of the Government Code is repealed.
SEC. 4. Chapter 2 (commencing with Section 13996) is added to Part
4.7 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER 2. INNOVATION AND TECHNOLOGY DEVELOPMENT
13996. (a) The Secretary of Business, Transportation and Housing
shall serve as a facilitator of the interests of high technology
businesses and of developers and investors. The secretary may convene
a statewide business partnership for innovation and technology or
take any other action he or she deems appropriate to engage with
private business and the financial sector.
(b) The business, academic, and financial sectors shall advise the
secretary on business needs and strategy priorities as they relate
to innovation and technology. This information shall be used in
establishing the needs and priorities in the study required pursuant
to Section 13996.01 and the strategy developed pursuant to Section
13996.02, and for any other uses as determined by the secretary.
13996.01. (a) (1) On or before July 1,
2009, the Secretary of Business, Transportation and Housing shall
complete a study on the competitiveness of California's businesses in
domestic and global markets in the area of technology and innovation
and submit it to the Chief Clerk of the Assembly and the Secretary
of the Senate. The secretary shall provide a copy of the study to the
Speaker of the Assembly, the President pro Tempore of the Senate,
and the chairs of the Assembly Committee on Jobs, Economic
Development, and the Economy and the Senate Committee on Business,
Professions and Economic Development, or the successor committees
with jurisdiction over economic development programs.
(2) If the secretary is unable to complete the study specified in
paragraph (1) due to a lack of funding, he or she shall notify the
Joint Budget Committee and the chairs of the Assembly Committee on
Jobs, Economic Development and the Economy and the Senate Committee
on Business, Professions and Economic Development, or the successor
committees having jurisdiction over economic development programs.
The notice shall, at a minimum, include an estimated date by which
the secretary expects that the study will be completed based upon
public or private funding becoming available for that purpose. The
revised date shall become the new date for the completion and
submission of the study, and the date for completion and submission
of the strategy pursuant to Section 13996.02 shall be adjusted
accordingly.
(b) The study shall include, but not be limited to, all of the
following components:
(1) A discussion of California's economy and its relationship to
global markets, including identification of current and emerging
trends, industries, and services and areas of comparative advantage
to other states and foreign countries. The discussion shall include
an assessment of the state of innovation in foreign countries and the
potential impact of the growing innovative capacity of foreign
countries on the state's ability to compete in the global economy.
(2) An inventory of existing programs and services provided by
local, state, federal, and private entities that serve, or could
serve, technology-based businesses and an analysis of any gaps in
those programs and services.
(3) An assessment of the current and future physical and human
infrastructure related to technology and an analysis of any
inadequacies in that infrastructure and the appropriate role for
state government to improve this infrastructure.
(4) An assessment of existing public, academic, and private
partnerships that support innovation and technology-based businesses.
(5) An examination of the challenges researchers and designers
encounter from the laboratory to the marketplace in developing new
products, including issues relating to access to capital,
intellectual capital, and governmental constraints. The examination
shall include an explanation of the reasons research is conducted in
a particular location, including, this state, other states, and
foreign countries.
(6) An assessment of the needs and priorities of businesses
related to technology and innovation, which may be based on current
surveys prepared by trade organizations or academic centers dedicated
to economic development or other surveys, as appropriate.
(7) An examination of the best methods to coordinate and leverage
existing local, state, and federal organizations, programs, and
services related to technology and innovation.
(8) An assessment of unique opportunities and challenges in
developing businesses and attracting investment along California's
border areas and in emerging domestic markets.
(9) A summary of the issues and concerns of key national and
international stakeholders who are engaged in the development,
testing, manufacturing, distribution, installation, and maintenance
of high technologies. The summary shall include recommendations on
the process California may use to enhance its relationship with these
stakeholders to benefit the state's business community.
(10) An assessment of local, regional, and state land use
decisions that encourage the development of technology and the
potential local benefits of technology industry clusters.
(11) An assessment of the ways in which the process of innovation
is changing in large companies and in small entrepreneurial
businesses.
(c) The study shall make recommendations on policies, programs,
and funding needs for the next three years, for the next seven years,
and over the long term. Recommendations may include, but are not
limited to, infrastructure improvements, workforce training needs,
incentives for businesses and investors, and the need for enhanced
research and development facilities. The study shall recommend
priorities for state activities and for funding related to innovation
and technology. The priorities shall be based on the inventory,
assessments, examinations, and discussions described in subdivision
(b). The study shall recommend an organizational structure for the
state administration of innovation and technology policies, programs,
and services.
(d) During the course of the study, the secretary shall consult
with other agencies, boards, and commissions that have statutory
responsibilities related to workforce development, infrastructure,
business, and technology including, but not limited to, the
California Economic Strategy Panel, the California Council on Science
and Technology, the California Commission on Industrial Innovation,
the Office of the Small Business Advocate, the California
Transportation Commission, the California Community Colleges, the
University of California, the California State University, the
California Workforce Investment Board, the Employment Training Panel,
and the State Energy Resource Conservation and Development
Commission.
(e) The secretary shall utilize current, related studies on
economic and workforce development, infrastructure, finance,
management, technology, and innovation in preparing the study.
(e)
(f) The secretary shall update the study at least once
every five years using the procedures set forth in this section.
13996.02. (a) (1) Based on the study
prepared pursuant to Section 13996.01, the Secretary of Business,
Transportation and Housing shall provide to the Legislature, on or
before January 15, 2010, a strategy for technology and innovation and
submit the strategy to the Chief Clerk of the Assembly and the
Secretary of the Senate and provide a copy of the strategy to the
Speaker of the Assembly, the President pro Tempore of the Senate, and
the chairs of the Assembly Committee on Jobs, Economic Development,
and the Economy and the Senate Committee on Business, Professions and
Economic Development, or the successor committees with jurisdiction
over economic development programs.
(2) If the secretary is unable to complete the strategy specified
in paragraph (1) due to a lack of funding, he or she shall notify the
Joint Budget Committee and the chairs of the Assembly Committee on
Jobs, Economic Development and the Economy and the Senate Committee
on Business, Professions and Economic Development, or the successor
committees having jurisdiction over economic development programs.
The notice shall, at a minimum, include an estimated date by which
the secretary expects that the strategy will be completed based upon
public or private funding becoming available for that purpose. The
revised date shall become the new date for completion and submission
of the strategy.
(b) The strategy shall, at a minimum, include all of the following
components:
(1) Policy goals, objectives, and recommendations required to
implement a comprehensive innovation and technology strategy for the
state, identifying the priority for each within the overall strategy.
(2) Measurable outcomes and timelines for implementation of the
goals, objectives, and recommendations for the technology and
innovation strategy.
(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 strategy.
(5) Identification of options for funding the actions described in
paragraph (1).
(6) Identification of an innovation and technology organizational
structure for the state administration of technology and innovation
policies, programs, and services.
(c) The secretary shall develop the strategy in consultation with
the California Economic Strategy Panel. In the course of developing
the strategy, the secretary shall also consult with other agencies,
boards, and commissions that have statutory responsibilities related
to workforce development, infrastructure, business, and technology
including, but not limited to, the California Commission on
Industrial Innovation, the Office of the Small Business Advocate, 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.
(d) (1) The relevant policy and fiscal committees of each house of
the Legislature shall review the strategy, holding hearings within
60 days of the date the strategy is submitted to the Legislature. If
the strategy is submitted when the Legislature is in recess, the
hearings shall occur within 60 days of the date that the Members
convene.
(2) The legislative committees may make recommendations to the
secretary on the strategy, and the secretary may modify the strategy
accordingly.
(e) The secretary shall report to the fiscal committees of the
Legislature on or before February 1, 2010, and by that date each year
thereafter, on the ways in which the Governor's proposed budget
relates to the strategy.
(f) The secretary shall update the strategy, at minimum, once
every five years, beginning five years after submitting the strategy
to the Legislature.
13996.03. (a) The Secretary of Business, Transportation and
Housing shall develop a state innovation and technology policy based
on the study and strategy completed pursuant to this chapter and that
is consistent with both the study and the strategy. The policy shall
also be consistent with the California Economic Development
Strategic Plan prepared by the California Economic Strategy Panel
pursuant to Section 15570, to the extent that plan is current, and
shall provide guidance to other agencies and departments for their
strategies and plans related to workforce and infrastructure
development.
(b) California's innovation and technology policy shall maximize
the state's comparative advantage to other states and foreign
countries for research, finance, development, manufacturing,
installation, and maintenance of high-technology products. The policy
shall mitigate areas of critical disadvantages and seek to maximize
opportunities for small- and mid-size firms.
(c) California's innovation and technology policy shall be based
on current and emerging market conditions and the needs of investors,
businesses, and workers to be competitive in global markets.
13996.04. (a) The Director of Finance may accept monetary gifts
to pay for a part of, or the entire cost of, developing and updating
the study, strategy, and policy required by this chapter. Any moneys
received as a gift pursuant to this section shall be deposited in the
California Economic Development Fund, established pursuant to
Section 13997.6. Records of donations received and expenditures made
pursuant to this section shall be subject to public disclosure.
(b) The director shall record each gift received pursuant to this
section, including all of the following information for each gift:
(1) The donor's name and the amount of the donation.
(2) A description of the manner in which the donation was
expended.
(c) The director shall, within 30 days of receipt of the donation,
provide a copy of the record to the Business, Transportation and
Housing Agency, and the agency shall maintain the record with its
statements of economic interests.
SEC. 5. Section 13998.10 of the Government Code is amended to
read:
13998.10. This chapter shall remain in effect only until January
1, 2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
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