BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1399
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

            AB 1399 (Committee on JEDE) - As Introduced:  March 11, 2013 

          Policy Committee:                              JEDE Vote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes technical changes relating to the transfer of  
          economic development 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)Makes a number of additional conforming and technical changes.

           FISCAL EFFECT  

          Neglible fiscal impact.

           COMMENTS  

           1)Purpose  .  Current law places the definitions for specified  
            economic development terms within statute relating to the  
            activities of BTH.  On July 1, 2013, BTH will be eliminated  
            and its programs and authorities will be shifted to other  
            state government entities. This bill transfers, from BTH to  
            GO-Biz, key components of current law and the authority to  
            administer the Economic Adjustment Assistance Grant and the  
            Severe Economic Dislocation Grant.

           2)Governor's Office of Business and Economic Development  :   
            GO-Biz was established through the enactment of AB 29 (J.  
            P�rez), Chapter 475, Statutes of 2011, to serve as the primary  
            executive agency responsible for economic development and job  
            creation efforts. GO-Biz offers a range of services to  








                                                                  AB 1399
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            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.
            
           4)There is no registered opposition to this bill.  


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081