BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 342 (Atkins) Hearing Date: 08/25/2011 Amended: As Introduced Consultant: Mark McKenzie Policy Vote: G.O. 12-0 _________________________________________________________________ ____ BILL SUMMARY: AB 342 would require the Governor's Office of Planning and Research (OPR) to serve as the state's liaison to the United States Department of Defense (DOD). The bill would also require OPR to coordinate with state, federal, local, and private entities to ensure the sustainability of defense activities, to work with federal defense agencies to address state regulatory activities that affect the sustainability of defense activities, and to develop legislation that supports the relationship between the state and the DOD. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund OPR staff liaison Annual costs in the range of $50-$100General _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. In 1994, Governor Wilson's executive order created the Office of Military Base Retention and Reuse within the State Technology, Trade & Commerce Agency in anticipation of federal action to close military bases in the state. When the State Technology, Trade and Commerce Agency was abolished, the Legislature renamed the Office of Military Base Retention and Reuse as the Office of Military and Aerospace Support (OMAS), moved it to the State Business, Transportation and Housing Agency (SB 926, Knight, 2004), and then extended its operations until January 1, 2009 (SB 1698, Ashburn, 2006). In addition to serving as the primary state liaison with the DOD, the OMAS served as the central clearinghouse for all defense retention, conversion, and base reuse activities in the state, served as a single state entity to interact and communicate with military installations AB 342 (Atkins) Page 1 throughout California, and also provided technical assistance to communities with potential or existing base closure activities. The annual budget for OMAS was approximately $517,000 annually. Executive Order S-16-06 ÝSchwarzenegger, 2006] established the Governor's Advisor for Military Affairs within OPR, with duties to coordinate: Land use planning to ensure sustainable defense activities. Bills to support California's relationship with the DOD. State regulatory activities that affect defense operations. Administration officials to cooperate with the military. Issues important to military personnel and their families. Advocacy on policies that affect armed forces based in California. AB 342 would codify the relationship between OPR and the DOD to ensure continuity in the relationship between the military and the state on issues relating to state policies that affect the military. In practical terms, OPR does not have a single staff person dedicated to military affairs, but various staff share these responsibilities; land use planning issues are handled by state clearinghouse staff, while a Deputy Director dedicates some of his time to serving as the Military Affairs Advisor. Staff estimates that OPR currently dedicates approximately 1/2 PY of total staff time to these duties. By codifying OPR as the state liaison to the DOD, AB 342 would create General Fund cost pressures to continue the activities that OPR currently conducts. OPR indicates that the bill would require an additional staff person to serve as a single point of contact as the liaison to DOD at a cost of approximately $100,000. Staff estimates these costs could be as low as $50,000, however, if OPR simply continued the current activities and division of labor dedicated to military affairs. It is possible that the state could seek federal funding for a dedicated position if the DOD perceived the state commitment as an effective and efficient resource to help streamline military operations in California. AB 342 (Atkins) Page 2