BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2600


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2600 (Lackey) - As Amended March 16, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requests that the University of California (UC)  
          Regents establish the California Institute for Aerospace.  
          Specifically, this bill:


          1)Requests that the Regents establish the institute in order to  
            achieve specified goals, including: a) creating new  
            opportunities for jobs in aerospace research; and b) design  








                                                                    AB 2600


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            and using public-private partnerships to perform innovative  
            research in aerospace technology.


          2)Requests that the regents locate the institute at a satellite  
            campus within 20 miles of Edwards Air Force Base or United  
            States Air Force Plant 42, so that it will close to a large  
            part of the state's current aerospace research and  
            development.





          3)Provides that this bill shall only be implemented to the  
            extent that Regents determine adequate funding has been  
            provided from federal, local, or private sector sources, has  
            been appropriated in the annual Budget Act or in another  
            statute, or has been provided from a combination of these  
            sources.
          FISCAL EFFECT:


          Annual costs to UC of at least $1 million to $2 million. UC  
          indicates that it is generally open to establishing research  
          institutes to the extent it has appropriate expertise and  
          adequate funding.


          COMMENTS:


          Purpose. The author argues "California institutes have been  
          tremendous resources for research in various industries. They  
          have successfully addressed critical issues facing the globe  
          in the fields of biology, physics, chemistry, economics, and  
          medicine."  According to the author, "with a small investment,  
          such institutes provide a substantial economic impact on their  
          surrounding areas and the entire state by accelerating  








                                                                    AB 2600


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          research and product development. This institute would  
          strengthen California's position as a global leader in the  
          aerospace industry, increase public-private partnerships and  
          fully maximize our role in designing and building the Long  
          Range Strike Bomber."

          Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081