BILL ANALYSIS Ó
AB 1196
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Date of Hearing: January 21, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1196 (Eduardo Garcia) - As Amended January 4, 2016
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|Policy |Jobs, Economic Development and |Vote:| 9 - 0 |
|Committee: |the Economy | | |
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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
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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
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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
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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