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
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          ____
          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

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          ____

          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 








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          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.









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