BILL ANALYSIS �
AB 1399
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Date of Hearing: April 23, 2013
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Jose Medina, Chair
AB 1399 (Jobs, Economic Development and the Economy) - As Introduced:
March 11, 2013
SUBJECT : Economic Development Definitions
SUMMARY : Makes technical changes to the Government Code relating to
the transfer of economic related programs from the Business,
Transportation and Housing Agency (BTH) to the Governor's Office of
Business and Economic Development (GO-Biz). Specifically, this bill :
1)Transfers administration of the Economic Adjustment Assistance Grant
and the Sudden and Severe Economic Dislocation Grant Program from
the BTH to GO-Biz.
2)Renumbers within statute the following definitions (no changes have
been made to the definitions):
-------------------------------------------------------------
|a) Local Economic Development | b) Financial Intermediary |
| Organization | |
|------------------------------+------------------------------|
|c)Local Economic Development | d) California Council on |
| Organization | Science and Technology |
|------------------------------+------------------------------|
|e)Regional Economic | f) Regional Economic |
| Development Organization | Development Corporation |
|------------------------------+------------------------------|
|g)Regional Economic | h) Small Businesses |
| Development Organization | |
|------------------------------+------------------------------|
|i)Economic Development | j) Community Development |
| Corporation | |
|------------------------------+------------------------------|
|aa)Triple Bottom Line | bb)Financial Institution |
| | Capital |
|------------------------------+------------------------------|
|cc)Economic Development | dd)Community Development |
| | Intermediary |
|------------------------------+------------------------------|
AB 1399
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|ee)Local Economic Development | ff)Microbusiness Lender |
|------------------------------+------------------------------|
|gg)Emerging Domestic Market | |
-------------------------------------------------------------
FISCAL EFFECT : Unknown
COMMENTS :
1)Framing the Policy Issue : Current law places the definitions for
specified economic development terms within statute relating to the
activities of BTH. On July 1, 2013, BTH will cease to exist and its
programs and authorities will be either eliminated or transferred to
other existing and new state government entities.
This bill transfers, without substantive changes, key economic
development definitions, as well as the authority to administer the
Economic Adjustment Assistance Grant and the Severe Economic
Dislocation Grant from BTH to GO-Biz.
2)Governor's Office of Business and Economic Development : GO-Biz was
established through the enactment of AB 29 (John A. P�rez), Chapter
475, Statutes of 2010, to serve as the primary executive agency
responsible for economic development and job creation efforts.
GO-Biz offers a range of services to business owners including:
attraction, retention and expansion services, site selection, permit
streamlining, small business assistance, international trade
development, and assistance with the government. Prior to the
creation of GO-Biz, economic development programs were administered
through a number of state entities including BTH.
3)Governor's Reorganization Plan 2 (GRP 2) : In 2012, Governor Brown
proposed with the approval of the Legislature, a comprehensive
reorganization plan (GRP 2) of state agencies and programs. Among
other changes, the GRP 2 reduces the number of state agencies by
eliminating five agencies and merging their responsibilities into
three new agencies: Government Operations; Business, Consumer
Services and Housing; and Transportation. In addition, the plan
proposes eliminating or transferring parts or all of the activities
of several boards and commissions to other locations within the
executive branch, and combining the activities of several
departments into new or existing departments. Among other changes,
the GRP 2 authorized the transfer of the Small Business Loan
Guarantee Program and the Infrastructure and Economic Development
Bank to GO-Biz.
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4)Economic Adjustment Assistance Grant : The federal Economic
Adjustment Assistance Grant program was initially designated to be
administered through the Technology, Trade, and Commerce Agency,
which was eliminated in 2003. Although the State Controller
retained the money for uses consistent with the federal program, no
state entity had authority to actually use the money. In 2008, BTH
was designed to administer the program and the moneys were
transferred to the California Expansion Fund to be used under
contract through the small business financial development
corporations (FDCs). BTH is now going to be eliminated and a new
administering entity needs to be provided for these programs. GRP 2
consolidates several economic development programs at GO-Biz
including contracting authority for FDCs
5)Related Legislation : The following is a list of related
legislation.
a) AB 29 (John A. P�rez) Creation of GO-Biz : This bill
established the Office of Economic Development within the
Governor's Office (GOED) for the purpose of serving as the lead
entity for economic strategy and marketing of California on
issues relating to business development, private sector
investment and economic growth. Status: Signed by the Governor,
Chapter 475, Statutes of 2011.
b) AB 901 (V. Manuel P�rez) Definition of Financial Institutions :
This bill expanded the definition of financial institutions
eligible to participate. Particularly, the bill included a small
business financial development corporation or microenterprise
development organization that met the established standards.
Additionally, it required an annual report to be given to
Governor and the Legislature that included: outstanding loans,
new loans issued since the prior report, total number of
businesses served, jobs created, jobs retained, the geographic
distribution of loans, and the breakdown of businesses served by
industry sector. Status: Signed by the Governor, Chapter 483,
Statutes 2011.
c) AB 192 (Budget Committee) BTH Authority to Administer Grant
Program : This bill, among other things, made the necessary
statutory changes to allow the transfer of $4.3 million in
federal funds held by the State Controller's Office to the
Business Transportation and Housing Agency in order to reactivate
the Sudden and Severe Economic Dislocation Grant Program as was
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approved in the budget. Status: Signed by the Governor, Chapter
312, Statutes of 2007.
d) AB 1317 (Frazer) GRP 2 Implementation : This bill makes the
necessary statutory changes to reflect the alterations made by
the Governors' Reorganization Plan 2 (GRP 2) as introduced to the
Legislature on May 3, 2012 and made effective on July 3, 2012.
Status: Pending on the Assembly Floor.
REGISTERED SUPPORT / OPPOSITION :
Support
None received
Opposition
None received
Analysis Prepared by : Toni Symonds & Edith Gonzalez / J., E.D. & E.
/ (916) 319-2090