BILL NUMBER: AB 29 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 31, 2011
AMENDED IN SENATE JULY 5, 2011
INTRODUCED BY Assembly Member John A. Pérez
(Principal coauthors: Assembly Members Feuer and V. Manuel Pérez)
DECEMBER 6, 2010
An act to add Chapter 1.6 (commencing with Section 12096) to Part
2 of Division 3 of Title 2 of, and to repeal 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 29, as amended, John A. Pérez. Office of Economic
Governor's Office of Business Development.
Existing law provides for various state programs and services for
the purpose of attracting and retaining businesses in this
the state. Existing law creates the Office of
Small Business Advocate in the Office of Planning and Research in the
Governor's office.
Executive Order S-05-10 created the Office of Economic Development
in the Governor's office, for the purpose of coordinating economic
development activities in the state.
This bill would create the Office of Economic
, within the Governor's office, the Governor's Office
of Business Development, which would be administered by a
director appointed by the Governor, subject to confirmation by the
Senate. The bill would require that the office serve the Governor as
the lead entity for economic strategy and the marketing of California
on issues relating to business development, private sector
investment, and economic growth, and would authorize the office
to exercise various powers, including, among others, to make
recommendations to the Governor and the Legislature regarding
policies, programs, and actions to advance statewide economic goals.
The bill would create the California Business Investment Services
Program, as specified, within the office, under the authority of the
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
move the Office of Small Business Advocate to the Office of
Economic Governor's Office of Business
Development.
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) In 2008, California had the eighth largest economy in the
world, with a gross state product of over $1.8 trillion.
(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, medical devices and diagnostic
tools, and clean and green technology.
(7) Its access to world-class research and educational
institutions.
(c) It is 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 and assistance to
companies, entrepreneurs, and small business owners, 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 government'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.
SECTION 1. SEC. 2. 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
GOVERNOR'S OFFICE OF BUSINESS 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, medical devices and diagnostic
tools, and clean and green technology.
(7) Its access to world-class research and educational
institutions.
(c) It is 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 and assistance to
companies, entrepreneurs, and small business owners, 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 government'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. 1. Definitions
12096.2. 12096.1. For purposes of
this chapter:
(a) "Office" means the Office of Economic
Governor's Office of Business Development.
(b) "Director" means the Director of the Office of
Economic Governor's Office of Business
Development.
Article 3. 2. General
12096.3. 12096.2. (a) The
Office of Economic Development Governor's Office of
Business Development, also known as "GO-Biz," is hereby
established in state government within the Governor's office. The
office shall be under the direct control of a director, who shall be
responsible to the Governor.
(b) The Governor shall appoint the Director of the Office
of Economic Development Governor's Office of Business
, 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 Director of the Office of Economic
Governor's Office of Business Development shall
be fixed pursuant to Section 12001.
Article 4. 3. Powers and Duties
12096.4. 12096.3. The office shall
serve the Governor as the lead entity for economic strategy and the
marketing of California on issues relating to business development,
private sector investment, and economic growth. In this capacity, the
office shall: may:
(a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing programs,
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.
(b) 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.
(c) 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.
(d) Provide, including, but not limited to, all of the following:
(1) Economic and demographic data.
(2) Financial information to help link businesses with state and
local public and private programs.
(3) Workforce information, including, but not limited to, 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 the state.
(e) Establish 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.
(f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.
(g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state's image as
a destination for business investment and expansion.
(h) Conduct research on the state's business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.
(i) Support small businesses by providing information about
accessing capital, complying with regulations, and supporting state
initiatives that support small business.
12096.5. (a) During the 2011-12 fiscal year, the office shall be
funded with existing resources and staffed by personnel loaned from
agencies and departments that address economic development,
including, but not limited to, the promotion of small business. The
agencies shall include, but not be limited to, the Labor and
Workforce Development Agency, the Business, Transportation and
Housing Agency, the California Environmental Protection Agency, the
Natural Resources Agency, the State and Consumer Services Agency, the
Department of Food and Agriculture, the California Technology
Agency, and the Office of Planning and Research.
(b)
12096.4. (a) Each member of the Governor's
cabinet shall identify a senior manager within his or her agency who
shall coordinate business support activities with the office.
(c)
(b) For the 2012-13 fiscal year and subsequent fiscal
years, the office shall develop a budget in coordination with the
Department of Finance pursuant to the state budgeting process,
including the permanent transfer of associated positions.
Article 5. 4. California
Business Investment Services Program
12096.7. 12096.5. (a) The
California Business Investment Services Program is hereby created
within the Office of Economic Governor's
Office of Business Development.
(b) The program shall be under the direct authority of the
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.
(d) In implementing the program, the 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.
(e) In implementing the program, the 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 6. 5. 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 Governor's Office of Business
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 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)
(4) 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)
(5) 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)
(6) 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)
(7) Counsel small businesses on how to resolve
questions and problems concerning the relationship of small business
to state government.
(10)
(8) Maintain, publicize, and distribute an annual list
of persons serving as small business ombudsmen throughout state
government.
(11)
(9) 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 , including an evaluation of
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
.
(c) The advocate may establish a centralized interactive telephone
referral system and Internet Web site 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 and an Internet Web site
address to serve this centralized interactive telephone
referral system and Internet Web site .
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 in consultation
with the appropriate state agencies , and update as necessary,
a handbook information about emergency
preparedness, responses to emergencies, and recovery strategies for
small businesses.
(b) Conduct at least one public meeting every year in
coordination with the appropriate state agencies, 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. SEC. 3. Article 7
(commencing with Section 65054) of Chapter 1.5 of Division 1 of Title
7 of the Government Code is repealed.