Amended in Assembly May 1, 2013

Amended in Assembly February 20, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 53


Introduced by Assembly Member John A. Pérez

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(Coauthors: Assembly Members Fong, Fox, Medina, and Weber)

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January 7, 2013


An act to amend Section 12096.3 of, and to add Section 12096.35 to, the Government Code, and to amend Section 1401 of the Labor Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 53, as amended, 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 abegin delete biennialend delete California Economic Development Strategic Plan, as specified.

Existing law provides that an employer, with certain exceptions, may not order a mass layoff, relocation, or termination, as defined, at a covered establishment without giving 60 days’ prior written notice to employees and the Employment Development Department and other local agencies, as well as complying with specified federal guidelines.

This bill would require the employer to also provide written notice to the Governor’s Office of Business and Economic Development and require the Employment Development Department to post the notice on its Internet Web site.

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

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

P2    1

SECTION 1.  

Section 12096.3 of the Government Code is
2amended to read:

3

12096.3.  

The office shall serve the Governor as the lead entity
4for economic strategy and the marketing of California on issues
5relating to business development, private sector investment, and
6economic growth. In this capacity, the office may:

7(a) Recommend to the Governor and the Legislature new state
8policies, programs, and actions, or amendments to existing
9programs, advance statewide economic goals and respond to
10emerging economic problems and opportunities, and ensure that
11all state policies and programs conform to the adopted state
12economic and business development goals.

13(b) Coordinate the development of policies and criteria to ensure
14that federal grants administered or directly expended by state
15government advance statewide economic goals and objectives.

16(c) Market the business and investment opportunities available
17in California by working in partnership with local, regional, federal,
18and other state public and private institutions to encourage business
19development and investment in the state.

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

21(1) Economic and demographic data.

22(2) Financial information to help link businesses with state and
23local public and private programs.

24(3) Workforce information, including, but not limited to, labor
25availability, training, and education programs.

26(4) Transportation and infrastructure information.

27(5) Assistance in obtaining state and local permits.

28(6) Information on tax credits and other incentives.

P3    1(7) Permitting, siting, and other regulatory information pertinent
2to business operations in the state.

3(e) Establish a well-advertised telephone number, an interactive
4Internet Web site, and an administrative structure that effectively
5supports the facilitation of business development and investment
6in the state.

7(f) Encourage collaboration among research institutions, startup
8companies, local governments, venture capitalists, and economic
9development agencies to promote innovation.

10(g) In cooperation with the federal government, foster
11relationships with overseas entities to improve the state’s image
12as a destination for business investment and expansion.

13(h) Conduct research on the state’s business climate, including,
14but not limited to, research on how the state can remain on the
15leading edge of innovation and emerging sectors.

16(i) Support small businesses by providing information about
17accessing capital, complying with regulations, and supporting state
18initiatives that support small business.

19(j) Lead the preparation of abegin delete biennialend delete California Economic
20Development Strategic Plan.

21

SEC. 2.  

Section 12096.35 is added to the Government Code,
22to read:

23

12096.35.  

(a) The office shall lead the preparation of abegin delete biennialend delete
24 California Economic Development Strategic Plan. In fulfilling this
25duty, the office shall do all of the following:

26(1) Make recommendations regarding an economic development
27strategic plan for the state, covering abegin delete two-yearend deletebegin insert three-yearend insert time
28period and containing a statement of economic goals for the state,
29a prioritized listbegin delete identifyingend deletebegin insert ofend insert significant issuesbegin delete learnedend deletebegin insert identifiedend insert
30 from proposals for legislation, regulations, and administrative
31reforms necessary to improve the business climate and economy
32of the state, evaluation of the effectiveness of the state’s economic
33development programs, a list of key industries in which the state
34shall focus its economic development efforts, and strategies to
35foster job growth and economic development covering all state
36agencies, offices, boards, and commissions that have economic
37development responsibilities.

38(2) Convenebegin delete a biennial meetingend deletebegin insert one or more meetingsend insert to provide
39recommendations regarding a California economic development
40strategic plan. The office shall invite businesses, labor unions,
P4    1organizations representing the interests of diverse ethnic and gender
2groups, local government leaders, academic economists and
3business professors, chambers of commerce and other business
4organizations,begin insert economic development organizations,end insert government
5agencies, and key industries to contribute to the preparation of the
6recommended economic strategy. These meetings shall address,
7but are not limited to, all of the following:

8(A) Strengths and weaknesses of the California economy and
9the state’s prospects for future economic prosperity.

10(B) Existing, emerging, and declining industries in California
11and elsewhere.

12(C) Effectiveness of California’s economic development
13programs in creating and retaining jobs and attracting industries.

14(D) Adequacy of state and local physical and economic
15infrastructure.

16(E) begin deleteGovernment end deletebegin insertGovernmental and nongovernmental end insert
17impediments to economic development.

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18(F) Opportunities to leverage federal resources for state
19priorities.

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20(G) Tactics for attracting private capital to the state and
21investment in state priority areas.

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22(F)

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23begin insert(H)end insert The development of a system of accountability for use in
24the annual state budget process and in the legislative process to
25measure the performance of all state policies, programs, and tax
26expenditures intended to stimulate the economy. In developing a
27system of accountability, thebegin delete panel, by using only existing
28resources and without future budget augmentation made for this
29purpose shall,end delete
begin insert office shallend insert do all of the following:

30(i) Develop a standard definition of economic development.

31(ii) Develop, for use in state law, standard measurements of real
32per capita income, job growth and retention, new business creation,
33private sector investment, minority entrepreneurship, and income
34inequality.

35(iii) Survey and evaluate efforts in other states to develop
36accountability measures for public investments in economic
37development.

38(iv) Determine whether a return on investment calculation is
39feasible for public investments in economic development.

P5    1(v) Conduct a comparative study of various methodologies for
2preparing the economic development sections of a state budget,
3including unified functional budget, zero-based budget, and
4performance-based budget methodologies.

5(vi) Study the feasibility of statutory disclosure requirements
6on specified publicly funded subsidies to private sector businesses.

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7(vii) Submit

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8begin insert(b)end insertbegin insertend insertbegin insertThe office shall submitend insert a report of its findings and
9 recommendations regardingbegin delete this subparagraphend deletebegin insert subdivision (a)end insert to
10the Governor andbegin insert theend insert Legislature no later thanbegin delete one year after its
11first meeting after January 1, 2015end delete
begin insert October 1, 2014, and every
12three years following that dateend insert
. The report shall be submitted to
13the Legislature in the manner required pursuant to Section 9795.

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14(b)

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15begin insert(c)end insert The office shall deliver copies of the recommended
16California economic development strategic plan to every
17constitutional officer, legislator, member of the Governor’s cabinet,
18and every state agency, office, board, and commission having
19economic development responsibilities.

20

SEC. 3.  

Section 1401 of the Labor Code is amended to read:

21

1401.  

(a) An employer may not order a mass layoff, relocation,
22or termination at a covered establishment unless, 60 days before
23the order takes effect, the employer gives written notice of the
24order to the following:

25(1) The employees of the covered establishment affected by the
26order.

27(2) (A) The Employment Development Department, the
28Governor’s Office of Business and Economic Development, the
29local workforce investment board, and the chief elected official
30of each city and county government within which the termination,
31relocation, or mass layoff occurs.

32(B) The Employment Development Department shall, upon
33receipt of the notice, post the notice on its Internet Web site.

34(b) An employer required to give notice of any mass layoff,
35relocation, or termination under this chapter shall include in its
36notice the elements required by the federal Worker Adjustment
37and Retraining Notification Act (29 U.S.C. Sec. 2101 et seq.).

38(c) Notwithstanding the requirements of subdivision (a), an
39employer is not required to provide notice if a mass layoff,
P6    1relocation, or termination is necessitated by a physical calamity
2or act of war.



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