BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 245
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 245 (Rubio) - As Amended:  August 7, 2012 

          Policy Committee:                              Jobs and Economic 
          Development  Vote:                            6-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill re-establishes the Office of Military Support (OMS) 
          within the Governor's Office of Planning and Research (OPR) for 
          the purpose of serving as a clearinghouse for state activities 
          related to the military, including base closures. Specifically, 
          this bill:

          1)Requires OMS to be the lead agency on the planning and 
            coordination of all matters related to base retention and 
            conversion.

          2)Requires the governor to appoint a Governor's Advisor on 
            Military Affairs (AMA), who will be responsible for the 
            operations of OMS.
            
          3)Requires OMS to solicit and accept funds from industry, 
            foundations or other sources to help support its operations.  

          4)Authorizes OMS to establish a Military Advisory Committee 
            (MAC) to advise the OMS on military-related matters including, 
            but not limited to, active U.S. Department of Defense (DOD) 
            installations and defense conversion issues.  

          5)Authorizes OPR, with input from OMS, to establish a military 
            support grant program to provide moneys to communities with 
            military bases to assist them with the development of a 
            retention strategy.


           FISCAL EFFECT  









                                                                  SB 245
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          Costs of approximately $1 million for the Governor's Office of 
          Planning and Research.

           COMMENTS  

           1)Purpose  :  According to the author, over 230,000 active duty 
            and civilian personnel are currently employed by the 
            Department of Defense and California receives close to $60 
            billion of the Department's direct expenditures.  The author 
            argues while the military has always been an important 
            participant in California's economy, in today's current 
            economic downturn the military's role is even more crucial and 
            the Legislature must take a leadership role in preserving the 
            state's relationship with the military.

           2)Background.   According to the author, California currently has 
            over 30 active bases, with 237,000 active duty and civilian 
            defense personnel.  Direct DOD expenditures in California are 
            over $59 billion, including employees, contracts and capital 
            investments.

            Military spending was once much more important to the 
            California economy.  With the end of the cold war, there was a 
            significant reduction in military spending.  One of the 
            results was the closure of 29 major bases in California with 
            the loss of 100,000 military and civilian jobs.  To help 
            address the subsequent issues, California had an office 
            similar to that proposed in this bill.  The office was 
            eliminated in 2009.

            The White House has called for two new Base Realignment and 
            Closure (BRAC) rounds which presumably would lead to 
            recommendations for base closures and realignments.  DOD 
            intends to use the potential savings from the closures to 
            offset Congress' 10-year DOD budget savings target of $487 
            billion.   Both the House and Senate Armed Services Committees 
            have produced 2013 spending bills, however, that do not 
            include the administration's request to establish a BRAC in 
            2013.  

           3)Related legislation.    AB 342(Atkins) directs OPR to serve as 
            the state's liaison to the U.S. Department of Defense in order 
            to facilitate coordination regarding issues that are of 
            significant interest to the state and the department, 
            particularly with regard to any proposed federal Base 








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            Realignment and Closure actions. The bill is pending on the 
            Senate Floor.

           4)Previous legislation.  

              a)   SB 1698 (Ashburn) Chapter 681, Statutes of 2006, 
               extended the authority for the Office of Military and 
               Aerospace Support (OMAS) until January 1, 2009, 

             b)   SB 926 (Knight and Ashburn) Chapter 907, Statutes of 
               2004 transferred OMAS to the Business, Transportation and 
               Housing Agency (BTH) and provided a January 1, 2007 sunset 
               date for the office.

             c)   SB 1099 (Pete Knight), Chapter 425, Statues of 1999, 
               codified an executive order which established the 
               predecessor to OMAS in the Trade and Commerce Agency.

             d)   SB 458 (Hart), Chapter 445, Statues of 1993, codified 
               the executive order designating Trade and Commerce Agency 
               as the lead coordinating agency.

           5)History.   SB 245 was not heard in the Senate; it was a 
            gut-and-amend in the Assembly Jobs Committee.  
            
          6)There is no registered opposition to this bill.
           
            

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081