BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 29
Author: John A. Pérez (D), et al.
Amended: 9/2/11 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 13-0, 6/28/11
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De León, Evans, Hernandez, Padilla, Strickland,
Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : 8-1, 8/25/11
AYES: Kehoe, Alquist, Emmerson, Lieu, Pavley, Price,
Runner, Steinberg
NOES: Walters
ASSEMBLY FLOOR : 76-2, 5/31/11 - See last page for vote
SUBJECT : Governors Office of Business and Economic
Development
(GO-Biz)
SOURCE : Author
DIGEST : This bill creates the Governors Office of
Business and Economic Development (GO-Biz), establishes
specific tasks and duties for the office, including
reorganizing such entities as the Small Business Advocate
and CalBIS into this new office, and specifies that this
new office will establish long-term economic goals and
strategies as well as specific and effective services to
CONTINUED
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California's businesses both large and small.
Senate Floor Amendments of 9/2/11 change the name of the
Office and remove Senate confirmation of the Director.
Senate Floor Amendments of 8/31/11 rename the Office of
Economic Development (GoED) to the Governor's Office of
Business Development (GO-Biz).
ANALYSIS :
Existing law:
1. Establishes various state programs and services to
attract and retain businesses in California.
2. Creates the Office of Small Business Advocate in the
Office of Planning and Research (OPR) in the Governor's
Office.
3. Requires the Secretary of Labor and Workforce
Development to lead the development of a biennial
California Economic Development Strategic Plan and, in
doing so, to review the recommendations of the
California Economic Strategy Panel, which was created
for this purpose.
4. Requires the Labor Secretary to convene a biennial
economic strategy panel, conduct meetings, and submit a
report to the Legislature regarding its findings and
recommendations regarding developing a system of
accountability, as specified.
5. Requires the Governor to prepare the Environmental Goals
and Policy Report every four years that outlines the
state's 20-year growth and economic development
strategy.
This bill creates the Governor's Office of Business and
Economic Development (GO-Biz), establishes specific tasks
and duties for the office, including reorganizing such
entities as the Small Business Advocate and CalBIS into
this new office, and specifies that this new office will
establish long-term economic goals and strategies as well
as specific and effective services to California's
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businesses both large and small.
Comments
Purpose of the bill . In February 2010, the Little Hoover
Commission released a report, entitled "Making up for Lost
Ground: Creating a Governor's Office of Economic
Development". The report analyzed the status and
effectiveness of the various entities of the defunct
Technology, Trade and Commerce Agency that had been
reorganized into other entities. The report recommended
the creation of a new governmental entity that would
promote greater economic development, foster job creation,
and deliver specific services such as permitting, tax, and
regulatory information directly to the California business
community.
The Little Hoover Commission report . Although the
Commission heard substantial criticism about the state's
business climate, its report focused on how the state could
better organize and utilize its existing business focused
and broader economic and workforce development programs and
services. The report noted that the state's current
economic development activities are spread out over
numerous agencies, boards, commissions and financing
authorities.
Executive Order S-05-10 . Issued on April 8, 2010, creates
the Governor's Office of Economic Development or GoED. The
Governor stated that its purpose is to promote California
as a place to do business, to support those interested in
starting, expanding, financing or relocating a business in
California, to the extent possible, help businesses facing
challenges to operating in California.
Governor's Office of Economic Development . The GoED
administers several programs and services, including
programs related to international trade, permit assistance,
and the like. The GoED currently has 23 staff, most all of
whom are on loan to GoED from state agencies and
departments.
The GoED is sponsoring a permit streamlining pilot project,
which will offer a One-Stop-Shop for state and local
permits. The pilot project was undertaken in partnership
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with the City and County of San Francisco, and allows a
business owner to apply and pay for all necessary city,
county and state permits through a dedicated Web site.
Prior Legislation
SB 1259 (DeSaulnier), 2009-10 Session, would have created
the Economic Development and Job Creation Agency and would
have required the new agency to perform duties relating to
economic development and job creation. It would have
required the Secretary to develop a reorganization plan and
propose a structure for the agency. (Held in Senate
Appropriations Committee)
AB 2734 (John A. Pérez), 2009-10 Session, would have
established the Office of Economic Development within the
Governor's Office to serve as the lead entity for economic
strategy and marketing of California on issues relating to
business development, private sector investment and
economic growth. The bill was vetoed by Governor
Schwarzenegger. In his veto message, he stated:
"This bill would create the Office of Economic
Development within the Governor's office. I am very
supportive of the effort to create an entity within my
office to give companies, entrepreneurs and small
businesses information and assistance on business growth
and economic development opportunities.
"However, I purposefully placed this entity within the
Governor's office to underscore the importance of this
mission to the state. Therefore, I am disappointed at
the insistence of the State Senate to make the director
of this office subject to confirmation, which
inappropriately infringes on the rights and powers of my
office."
AB 2287 (Bass), 2009-10 Session, would have established the
Office of Economic Development, which includes the
California Business Investment Services Program, within the
Governor's Office. (Held in Assembly Jobs, Economic
Development, and the Economy Committee)
AB 1558 (V. Manuel Pérez), 2009-10 Session, would have
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realigned the state's economic and workforce development
programs within the Employment Development Department, to
be renamed the Economic and Employment Development
Department. (Held in Senate Appropriations Committee)
AB 699 (Portantino), 2009-10 Session, would have updated
the requirements for the development of a State Economic
Development Strategy, especially in the areas of technology
and innovation, and requires it be submitted to the
Legislature. (Held in Assembly Appropriations Committee)
AB 2711 (Portantino), 2007-08 Session, would have required
the Secretary of the Business, Transportation and Housing
Agency to develop a comprehensive state technology and
innovation strategy to guide future state expenditures and
activities. (Held in Assembly Appropriations Committee)
AB 1916 (Portantino), 2007-08 Session, would have modified
the requirements of the Economic Development Strategic
Plan, especially in the areas of technology and innovation,
and required that the next State Economic Development
Strategy be submitted to the Legislature by
January 1, 2010. The bill was vetoed by Governor
Schwarzenegger.
AB 1721 (Arambula), Chapter 631, Statutes of 2007,
designates the Business, Transportation and Housing Agency
as lead agency on economic development activities, and
established a fund for receiving federal, state, local, and
private economic development moneys that can be used to
further state economic development activities.
AB 1606 (Arambula), 2007-08 Session, would have required
the development of a strategy to increase private
investment in California's historically underserved
communities, also known as emerging domestic markets. The
bill was vetoed by Governor Schwarzenegger.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/2/11)
Bay Area Council
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Business Council, Inc.
CalAsian Chamber of Commerce
California Aerospace Technology Association
California Association for Local Economic Development
California Center for Rural Policy, Humboldt State
University
California Faculty Association
California Hispanic Chamber of Commerce
California Labor Federation/AFL-CIO
California Retailers Association
City of San Bernardino
City of Selma
Contra Council
CSU Fresno
Economic Vitality Corp.
Fresno Business Council
Greater Antelope Valley Economic Alliance
Greater Corona Valley Chamber of Commerce
Hollywood Chamber of Commerce
Joint Venture Silicon Valley Network
Kings County Economic Development Corporation
Little Hoover Commission
Los Angeles Area Chamber of Commerce
Los Angeles County Business Federation
Los Angeles County Economic Development Corporation
Los Rios Community College District
North Bay Leadership Council
Oakland Metropolitan Chamber of Commerce
Orange County Business Council
Rafter Group, Inc.
Sacramento Metro Chamber
Sacramento Municipal Utility District
San Diego Chamber of Commerce
San Diego Regional, EDC
San Francisco Chamber of Commerce
San Gabriel Valley Economic Partnership
San Jose Silicon Valley Chamber of Commerce
Sierra Business Council
Silicon Valley Leadership Group
Small Business Development Center - NorCal
Sonoma County Economic Development Board
South Bay Association of Chambers of Commerce
Southern California Leadership Council
Team California
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The Greater Corona Valley Chamber of Commerce
Tuolumne County Economic Development Authority
ARGUMENTS IN SUPPORT : According to the author's office,
in February 2010, the Little Hoover Commission released a
report entitled "Making up for Lost Ground: Creating a
Governor's Office of Economic Development". The report
analyzed the status and effectiveness of the various pieces
of the defunct Trade and Commerce Agency that had been
reorganized into other state entities. The report
recommended the creation of a new governmental entity to
fill the void left by the dismantled agency. One agency
that would promote greater economic development, foster job
creation, and deliver specific services (i.e. permitting,
tax, regulatory, and other information) directly to the
California business community. This bill creates the
Governor's Office of Business Development (GO-Biz), and
establishes specific tasks and duties for the office,
including reorganizing such entities as the Small Business
Advocate and CalBIS into this new office. Ultimately, this
new office will establish long-term economic goals and
strategies as well as specific and effective services to
California's businesses both large and small.
ASSEMBLY FLOOR : 76-2, 5/31/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Olsen, Pan, Perea,
V. Manuel Pérez, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. Pérez
NOES: Donnelly, Norby
NO VOTE RECORDED: Gorell, Halderman
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PQ:mw 9/6/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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