BILL ANALYSIS Ó AB 1196 Page 1 Date of Hearing: January 21, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1196 (Eduardo Garcia) - As Amended January 4, 2016 ----------------------------------------------------------------- |Policy |Jobs, Economic Development and |Vote:| 9 - 0 | |Committee: |the Economy | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill expands permissible activities of the Commission for Economic Development (CED) and authorizes the Governor to appoint three additional members to the commission. Specifically, this bill: 1)Authorizes the Governor to appoint three Congressional members to the CED, thereby expanding membership to 20 members. 2)Expands permissible activities of the CED to include collaborating with statewide and regional organizations on AB 1196 Page 2 economic and community development initiatives and identifying and supporting this state's access to federal programs, services, and initiatives that would benefit this state's economy, businesses, and workers. 3)States all studies and reports of the CED are public documents and requires the studies or reports to be posted on the Internet Web site of the Lieutenant Governor for not less than 24 months. 4)Authorizes, rather than requires, the CED to appoint advisory committees from outside its membership to represent various segments of the state's economy. Clarifies no reimbursement for travel within the state or per diem is authorized for participation on an advisory committee or for testifying before an advisory committee. 5)Reduces the number of mandatory CED meetings from four to three per year and authorizes meetings via teleconference. 6)Authorizes the CDE to meet and accept testimony and discuss issues without the presence of a quorum. 7)Adds federal, foreign, and local government entities to those groups that the CED is specifically authorized to work with in achieving its objectives. FISCAL EFFECT: Annual GF costs, likely in the range of $200,000 to $250,000, to fully support the activities of the CED. Estimated costs include staff to the commission, member travel and annual reporting AB 1196 Page 3 requirements. The CED is currently inactive and no state resources are dedicated to support the CED. This estimate assumes the CED will perform some functions. COMMENTS: 1)Purpose. According to the author, this bill proposes to update and add flexibility to the existing CED structure as a means to kick-start the re-establishment of this economic stakeholder advisory board. 2)Background. The Commission for Economic Development (CED) was established in 1971 and is charged with the task of assessing specific local and regional economic development problems, providing a forum for economic development-related conversations between the state and private sectors, and furnishing studies and recommendations to resolve important economic development issues. The CED consists of 17 members: The Lieutenant Governor (chair); three members of the Senate appointed by the Senate Rules Committee; three members of the Assembly appointed by the Speaker of the Assembly; and, 10 members appointed by the Governor. The Governor's appointments are made in consultation with business, industry, and labor organizations, with no more than six members registered from the same political party. 3)Comments. The last meeting of the CED was in 2013 and included members from the prior administration. Governor Brown has not AB 1196 Page 4 appointed any members to the CED, leaving all 10 appointments vacant. This bill authorizes the Governor to appoint three additional members to the commission. The commission currently cannot meet for lack of a quorum. It is not clear how increasing the Governor's appointments from 10 to 13 (and thereby increasing the quorum requirements) will make it more likely the commission will meet. The current staffing level at the Lieutenant Governor's office does not appear adequate to support the CED. Current law requires the Governor to appoint an executive secretary for the commission to serve at the pleasure of the Lieutenant Governor and requires the Lieutenant Governor to appoint the staff of the commission. The Governor has not appointed an executive secretary. Furthermore, the Lieutenant Governor's office has seen a significant reduction in staff, going from approximately 33 staff in the early 2000's to 6 staff in FY 2015. Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081