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