California Legislature—2013–14 Regular Session

Assembly Bill No. 53

Introduced by Assembly Member John A. Pérez

January 7, 2013

An act to amend Section 12096.3 of, and to add Section 12096.35 to, the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 53, as introduced, John A. Pérez. Governor’s Office of Business and Economic Development: biennial California Economic Development Strategic Plan.

The Governor’s Office of Business and Economic Development serves as the Governor’s lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The office, among others, makes recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic goals.

This bill would require the office to lead the preparation of a biennial California Economic Development Strategic Plan, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 12096.3 of the Government Code is
amended to read:

12096.3.  

The office shall serve the Governor as the lead entity
for economic strategy and the marketing of California on issues
relating to business development, private sector investment, and
economic growth. In this capacity, the office may:

(a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing
programs, advance statewide economic goals and respond to
emerging economic problems and opportunities, and ensure that
all state policies and programs conform to the adopted state
economic and business development goals.

(b) Coordinate the development of policies and criteria to ensure
that federal grants administered or directly expended by state
government advance statewide economic goals and objectives.

(c) Market the business and investment opportunities available
in California by working in partnership with local, regional, federal,
and other state public and private institutions to encourage business
development and investment in the state.

(d) Provide, including, but not limited to, all of the following:

(1) Economic and demographic data.

(2) Financial information to help link businesses with state and
local public and private programs.

(3) Workforce information, including, but not limited to, labor
availability, training, and education programs.

(4) Transportation and infrastructure information.

(5) Assistance in obtaining state and local permits.

(6) Information on tax credits and other incentives.

(7) Permitting, siting, and other regulatory information pertinent
to business operations in the state.

(e) Establish a well-advertised telephone number, an interactive
Internet Web site, and an administrative structure that effectively
supports the facilitation of business development and investment
in the state.

(f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.

(g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state’s image
as a destination for business investment and expansion.

(h) Conduct research on the state’s business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.

(i) Support small businesses by providing information about
accessing capital, complying with regulations, and supporting state
initiatives that support small business.

begin insert

(j) Lead the preparation of a biennial California Economic
Development Strategic Plan.

end insert

SEC. 2.  

Section 12096.35 is added to the Government Code,
to read:

12096.35.  

(a) The office shall lead the preparation of a biennial
California Economic Development Strategic Plan. In fulfilling this
duty, the office shall do all of the following:

(1) Make recommendations regarding an economic development
strategic plan for the state, covering a two-year time period and
containing a statement of economic goals for the state, a prioritized
list identifying significant issues learned from proposals for
legislation, regulations, and administrative reforms necessary to
improve the business climate and economy of the state, evaluation
of the effectiveness of the state’s economic development programs,
a list of key industries in which the state shall focus its economic
development efforts, and strategies to foster job growth and
economic development covering all state agencies, offices, boards,
and commissions that have economic development responsibilities.

(2) Convene a biennial meeting to provide recommendations
regarding a California economic development strategic plan. The
office shall invite businesses, labor unions, organizations
representing the interests of diverse ethnic and gender groups,
local government leaders, academic economists and business
professors, chambers of commerce and other business
organizations, government agencies, and key industries to
contribute to the preparation of the recommended economic
strategy. These meetings shall address, but are not limited to, all
of the following:

(A) Strengths and weaknesses of the California economy and
the state’s prospects for future economic prosperity.

(B) Existing, emerging, and declining industries in California
and elsewhere.

(C) Effectiveness of California’s economic development
programs in creating and retaining jobs and attracting industries.

(D) Adequacy of state and local physical and economic
infrastructure.

(E) Government impediments to economic development.

(F) The development of a system of accountability for use in
the annual state budget process and in the legislative process to
measure the performance of all state policies, programs, and tax
expenditures intended to stimulate the economy. In developing a
system of accountability, the panel, by using only existing
resources and without future budget augmentation made for this
purpose shall, do all of the following:

(i) Develop a standard definition of economic development.

(ii) Develop, for use in state law, standard measurements of real
per capita income, job growth and retention, new business creation,
private sector investment, minority entrepreneurship, and income
inequality.

(iii) Survey and evaluate efforts in other states to develop
accountability measures for public investments in economic
development.

(iv) Determine whether a return on investment calculation is
feasible for public investments in economic development.

(v) Conduct a comparative study of various methodologies for
preparing the economic development sections of a state budget,
including unified functional budget, zero-based budget, and
performance-based budget methodologies.

(vi) Study the feasibility of statutory disclosure requirements
on specified publicly funded subsidies to private sector businesses.

(vii) Submit a report of its findings and recommendations
regarding this subparagraph to the Governor and Legislature no
later than one year after its first meeting after January 1, 2015. The
report shall be submitted to the Legislature in the manner required
pursuant to Section 9795.

(b) The office shall deliver copies of the recommended
California economic development strategic plan to every
constitutional officer, legislator, member of the Governor’s cabinet,
and every state agency, office, board, and commission having
economic development responsibilities.