Amended in Assembly May 24, 2013

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

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

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 a 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 a California Economic Development
20Strategic 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 a
24California 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 a three-year time period and
28containing a statement of economic goals for the state, a prioritized
29list of significant issues identified from proposals for legislation,
30regulations, and administrative reforms necessary to improve the
31business climate and economy of the state, evaluation of the
32effectiveness of the state’s economic development programs, a list
33of key industries in which the state shall focus its economic
34development efforts, and strategies to foster job growth and
35economic development covering all state agencies, offices, boards,
36and commissions that have economic development responsibilities.

37(2) Convene one or more meetings to provide recommendations
38regarding a California economic development strategic plan. The
39office shall invite businesses, labor unions, organizations
40representing the interests of diverse ethnic and gender groups,
P4    1local government leaders, academic economists and business
2professors, chambers of commerce and other business
3organizations, economic development organizations, government
4agencies, and key industries to contribute to the preparation of the
5recommended economic strategy. These meetings shall address,
6but are not limited to, all of the following:

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

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

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

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

15(E) Governmental and nongovernmental impediments to
16economic development.

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

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

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21(H) The development of a system of accountability for use in
22the annual state budget process and in the legislative process to
23measure the performance of all state policies, programs, and tax
24expenditures intended to stimulate the economy. In developing a
25system of accountability, the office shall do all of the following:

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

27(ii) Develop, for use in state law, standard measurements of real
28per capita income, job growth and retention, new business creation,
29private sector investment, minority entrepreneurship, and income
30inequality.

31(iii) Survey and evaluate efforts in other states to develop
32accountability measures for public investments in economic
33development.

34(iv) Determine whether a return on investment calculation is
35feasible for public investments in economic development.

36(v) Conduct a comparative study of various methodologies for
37preparing the economic development sections of a state budget,
38including unified functional budget, zero-based budget, and
39performance-based budget methodologies.

P5    1(vi) Study the feasibility of statutory disclosure requirements
2on specified publicly funded subsidies to private sector businesses.

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3(b) The office shall submit a report of its findings and
4 recommendations regarding subdivision (a) to the Governor and
5the Legislature no later than October 1, 2014, and every three years
6following that date. The report shall be submitted to the Legislature
7in the manner required pursuant to Section 9795.

8(c) The office shall deliver copies of the recommended
9California economic development strategic plan to every
10constitutional officer, legislator, member of the Governor’s cabinet,
11and every state agency, office, board, and commission having
12economic development responsibilities.

13

SEC. 3.  

Section 1401 of the Labor Code is amended to read:

14

1401.  

(a) An employer may not order a mass layoff, relocation,
15or termination at a covered establishment unless, 60 days before
16the order takes effect, the employer gives written notice of the
17order to the following:

18(1) The employees of the covered establishment affected by the
19order.

20(2) (A) The Employment Development Department, the
21Governor’s Office of Business and Economic Development, the
22local workforce investment board, and the chief elected official
23of each city and county government within which the termination,
24 relocation, or mass layoff occurs.

25(B) The Employment Development Department shall, upon
26receipt of the notice, post the notice on its Internet Web site.

27(b) An employer required to give notice of any mass layoff,
28relocation, or termination under this chapter shall include in its
29notice the elements required by the federal Worker Adjustment
30and Retraining Notification Act (29 U.S.C. Sec. 2101 et seq.).

31(c) Notwithstanding the requirements of subdivision (a), an
32employer is not required to provide notice if a mass layoff,
33relocation, or termination is necessitated by a physical calamity
34or act of war.



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