BILL ANALYSIS Ó
AB 53
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CONCURRENCE IN SENATE AMENDMENTS
AB 53 (John A Pérez)
As Amended September 3, 2013
Majority vote
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|ASSEMBLY: |55-21|(May 30, 2013) |SENATE: |28-11|(September 9, |
| | | | | |2013) |
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Original Committee Reference: J., E.D. & E.
SUMMARY : Requires the Governor's Office of Business and
Economic Development (GO-Biz) to lead the preparation of the
California Economic Development Strategic Plan (ED Strategy), as
specified. In addition, the bill requires a copy of the Worker
Adjustment and Retraining Notification Act (WARN) notice be
provided to GO-Biz and that it be posted on the Employment
Development Department (EDD) Web site.
The Senate amendments:
1)Modify the update schedule to be two years following the first
report period.
2)Remove the specific requirement to convene one or more
stakeholder meetings to help develop recommendations for the
strategy and, instead, require a stakeholder advisory meeting
following the completion of the strategy.
3)Specify that GO-Biz may utilize portions of previous studies
in developing the strategy.
4)Provide that the ED Strategy may be funded in whole or in part
by nonstate funds, the sources of which are to be reported, as
specified.
5)Make other clarifying and technical changes.
EXISTING LAW :
1)Establishes GO-BIZ within the Governor's Office for the
purpose of serving as the lead state entity for economic
strategy and marketing of California on issues relating to
business development, private sector investment and economic
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growth.
2)Requires a copy of the federal WARN notice be provided by a
covered employer to specified state and local government
entities 60 days prior to initiating a mass layoff,
termination, or relocation.
a) Covered employers include those that have employed more
than 75 individuals during the prior 12-months.
b) State and local government entities include the EDD, the
local workforce investment board (WIB) and the chief
elected official of each city and county government within
which the termination, relocation or mass layoff occurs.
c) A mass layoff is defined as any 30-day period in which
50 or more employees at a covered establishment are
separated from the business for a lack of funds or work.
d) Relocation is defined as the removal of all or
substantially all of the industrial or commercial
operations in a covered establishment to a location 100
miles or more away.
e) Termination is defined as the cessation or substantial
cessation of industrial or commercial operations in a
covered establishment.
FISCAL EFFECT : According to the Senate Appropriations
Committee, GO-Biz estimates that it would incur a cost of
$500,000 (General Fund) and EDD estimates it incur minor and
absorbable costs. To the extent that 1) existing studies could
be used to satisfy the bill's reporting requirements, and 2)
non-General Fund funding sources are identified, costs could be
lower.
COMMENTS : This measure proposes the development of a strategy
to guide the state's economic development activities. Just like
a business strategy, a state strategy provides the big picture
that shows how all the individual activities are coordinated to
achieve a desired end result. As the ninth largest economy in
the world, California's lack of a strategic plan impedes the
state's ability to communicate clear priorities on key issues
such as infrastructure development, workforce preparation, and
support for emerging and dominant industry sectors within the
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state's nine regional economies.
The policy committee analysis includes additional information on
the advantages of a strategy, the interrelationships between
state planning and funding, and the role of GO-Biz.
What a strategy could accomplish: There are eight key drivers
of the California economy: capital, infrastructure, labor,
business, education, consumers, nonprofits, and government
actions. Each of these drivers has its own unique
characteristics, as well as qualities that they share in common.
In addition, each of the drivers is inextricably linked within
the overall economy. A weakness within any one of the drivers
affects the others.
As an example, California's aging infrastructure limits the
state's ability to move products from farm to factories and on
to foreign and domestic markets. These delays in moving goods
and the higher costs of transportation impacts businesses all
along the supply chain resulting in less job growth, lower
discretionary income, and ultimately less tax revenues. While
the impacts of poor quality infrastructure are known, addressing
this challenge requires a coordinated and comprehensive approach
by both public and private stakeholders.
The ED Strategy would serve as a single document for identifying
important economic issues, engaging stakeholders in the
development of solutions, and the prioritizing of key state
actions.
Up until August 2011, existing law required the state to have a
two-year state Economic Development Strategic Plan,
substantially similar to the ED Strategy proposed in this bill.
This bill re-establishes the mandate for a comprehensive
strategy to guide state actions related to job creation,
business development, and attraction of private sector
investment.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0002585
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