BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 29 (J Perez)
Hearing Date: 8/15/2011 Amended: 7/5/2011
Consultant: Bob Franzoia Policy Vote: G O 13-0
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BILL SUMMARY: AB 29 would create the Office of Economic
Development as the
lead entity for economic strategy and marketing of California.
This bill would create the California Business Investment
Services Program (CalBIS) for the purpose of serving employers,
corporate executives, business owners, and site location
consultants who are considering California for business
investment and expansion. This bill would move the Office of
Small Business Advocate to the Office of Economic Development.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Creation of the Office of Up to $1,166* Up to
$2,332 Up to $2,332 General/
Economic Development Various
Special
* Based on 14 program positions, 4 administrative positions and
5 vacancies within the Governor's Office of Economic
Development. The proposed 2002-03 Technology, Trade and
Commerce Agency budget was approximately $20 million but
included programs not referenced in this bill. That agency was
abolished in the 2003-04 Budget Act and several of its programs
were transferred to other departments.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Executive Order S-05-10 created the Governor's Office of
Economic Development (GoED). Its purpose is to promote
California as a place to do business, to support those
interested in starting, growing, financing, expanding or
relocating a business in California, and to help, to the extent
AB 29 (Perez)
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possible, those businesses facing challenges to operating in
California. (The Office of Economic Development shall exist
within the Governor's Office, be headed by a director designated
by the Governor, and shall be the state's lead entity for
economic development coordination with all public and private
entities.)
Also according to the Executive Order, GoED shall be created
with existing resources and shall be staffed with personnel from
agencies and departments whose functions relate to economic
development, including small business promotion. These agencies
shall include, but not be limited to, the Labor and Workforce
Development Agency, the Business, Transportation and Housing
Agency, the Environmental Protection Agency, the Natural
Resources Agency, the State and Consumer Services Agency, the
Department of Food and Agriculture, the Office of the Chief
Information Officer, and the Office of Planning and Research.
Each member of the Cabinet shall identify a senior manager
within his or her agency to coordinate business support
activities with GoED.
Initially, GoED had one Executive Director, six deputies and two
project managers in the CalBIS program, three deputies and one
project manager in small business, two deputies in innovation
and entrepreneurship, two deputies and one manager in
international trade, one deputy and one analyst in policy and
research planning, one deputy in marketing and communications,
and one deputy in external affairs.
The current GoED has personnel from 13 agencies, departments and
offices. Classifications include director (1), deputy directors
(6), CEA III (1), staff services manager (5), staff services
analyst (2), associate governmental program analyst (2) and
office manager (1). There are 5 vacancies. All personnel are
in one location.
The appropriate combination of programs and staffing will likely
vary and grow in future years. For example, in 2002-03 programs
in the Technology, Trade and Commerce Agency included, among
others:
California Infrastructure and Economic Development Bank (21 PY).
Military Base Retention and Reuse (6 PY).
California Film Commission (19 PY).
Regional Offices for Economic Development (117 PY).
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International Trade and Investment (148 PY).
Tourism (21 PY).
There were 65.8 administrative positions and 367 authorized
positions.
This bill states that during 2011-12, the office shall be funded
with existing resources and shall be staffed by personnel loaned
from agencies and departments that address economic development
and the promotion of small business. For 2012-13 and subsequent
fiscal years, the office shall develop a budget in coordination
with the Department of Finance pursuant to the state budgeting
processes, including the permanent transfer of associated
positions.
This bill is similar to AB 2734 (J Perez) which was vetoed by
Governor Schwarzenegger with a veto message that requiring the
director of the Office of Economic Development to be subject to
Senate confirmation inappropriately infringed on the rights and
powers of the Governor. Staff notes AB 29 makes the director of
the Office of Economic Development subject to Senate
confirmation.