BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 189 Hearing Date: April 6, 2015
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|Author: |Hueso |
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|Version: |March 26, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Sarah Mason |
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Subject: Clean Energy and Low-Carbon Economic and Jobs Growth Blue
Ribbon Committee.
SUMMARY: Establishes the Clean Energy and Low-Carbon Economic and
Jobs Growth Blue Ribbon Committee to advise state agencies on the
most effective ways to allocate clean energy and greenhouse gas
related funds and to implement policies that maximize economic and
employment benefits.
Existing law:
1) The California Global Warming Solutions Act (Act) requires the
California Air Resources Board (ARB) to determine the 1990
statewide greenhouse gas (GHG) emissions level and approve a
statewide GHG emissions limit that is equivalent to that level,
to be achieved by 2020, and to adopt GHG emission reduction
measures by regulation, and sets certain requirements in
adopting the regulations.
(Health and Safety Code (HSC) §38500 et seq.)
2) Requires the ARB to convene an Environmental Justice Advisory
Committee (EJAC), to advise the Board in developing the Scoping
Plan, and any other pertinent matter in implementing the Act.
Requires that the Committee be comprised of representatives
from communities in the State with the most significant
exposure to air pollution, including, but not limited to,
communities with minority populations or low-income
populations. Requires the ARB to appoint an Economic and
Technology Advancement Advisory Committee (ETAAC) to advise the
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state board on activities that will facilitate investment in
and implementation of technological research and development
opportunities, including, but not limited to, identifying new
technologies, research, demonstration projects, funding
opportunities, developing state, national, and international
partnerships and technology transfer opportunities, and
identifying and assessing research and advanced technology
investment and incentive opportunities that will assist in the
reduction of greenhouse gas emissions. Provides that the ETAAC
may also advise the ARB on state, regional, national, and
international economic and technological developments related
to greenhouse gas emission reductions. (HSC § 38591)
3) Establishes the Greenhouse Gas Reduction Fund (GHGRF) in the
State Treasury and requires all moneys, except for fines and
penalties, collected pursuant to a market-based mechanism be
deposited in the fund. (Government Code (GC) §16428.8)
4) Requires each state agency, on or before October 1 of each
year, to prepare and submit to the agency Secretary the
following:
a) A list of measures that have been adopted and implemented
by the state agency to meet GHG emission reduction targets
and a status report on actual GHG emissions reduced as a
result of these measures
b) A list and timetable for adoption of any additional
measures needed to meet GHG emission reduction targets.
c) An estimate of the department's own greenhouse gas
emissions, as well as an explanation of any increase or
decrease compared to the previous year's emissions. (GC §
12892)
1) Requires the information to also be submitted in a clear and
standardized format on the agency's Web site in the form of a
state agency greenhouse gas emission reduction report card.
Requires the report card to compare actions taken and proposed
to be taken by individual state agencies and their projected
annual GHG emission reductions against the state agency GHG
emission reduction targets and statewide GHG emission reduction
limits. (Id.)
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2) Establishes the Governor's Office of Business and Economic
Development (GO-Biz) within the Governor's Office for the
purpose of serving as the lead state entity for economic
strategy and marketing of California on issues relating to
business development, private sector investment and economic
growth. (GC §§ 12096 - 12098.5)
3) Authorizes GO-Biz to coordinate the development of policies and
criteria to ensure that federal grants administered or directly
expended by state government advance statewide economic goals
and objectives. Authorizes GO-Biz to market the business and
investment opportunities available in California by working in
partnership with local, regional, federal, and other state
public and private institutions to encourage business
development and investment in the state. Authorizes GO-Biz to
support small businesses by providing information about
accessing capital, complying with regulations, and supporting
state initiatives that support small business. (GC § 12096.3)
4) Creates the iHub Program within GO-Biz. Requires GO-Biz to
designate iHubs within the state to stimulate partnerships,
economic development, and job creation by leveraging assets to
provide an innovation platform for startup businesses, economic
development organizations, business groups, and venture
capitalists. Provides that the assets may include, but are not
limited to, research parks, technology incubators,
universities, and federal laboratories. Requires GO-Biz to
oversee, coordinate, and provide assistance to each iHub. (GC
§ 12099.1)
5) Establishes the Commission for Economic Development
(Commission) to provide continuing bipartisan legislative,
executive branch and private sector support and guidance for
the best possible overall economic development of the state.
Tasks the Commission with:
a) Assessing specific regional or local economic development
problems and making recommendations for solving problems.
b) Providing a forum for ongoing dialogue on economic issues
between state government and the private sector.
c) Recommending, where deemed appropriate, legislation to
require evaluation of demonstration and ongoing economic
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development projects and programs to ensure continued cost
effectiveness.
d) Identifying and reporting important secondary effects on
economic development of programs and regulations which may
have other primary purposes.
e) Undertaking specialized studies and preparing specialized
reports at the request of the Governor or Legislature
advisory committees. (GC §14999)
1) Authorizes the Commission appoint task forces to study and
report on specific issues. (GC § 14999.2)
2) Requires the Commission to appoint advisory committees from
outside its membership to represent the aerospace,
manufacturing, maritime, tourism and world trade segments of
the state's economy, and such other advisory committees as it
deems necessary for the purpose of carrying out its
responsibilities.
(GC § 14999.3)
3) Requires the Commission to consider programs to further the
economic development of the state and study the laws and
programs of other states relating to economic development and
the encouragement of business and industry, as well as
conferring with governmental officials and representatives of
business and industry and any other persons or organizations
interested in the promotion of economic development. Requires
the Commission to make recommendations concerning legislation
affecting the economic development of the state and report
annually, no later than February 1 of each year, to the
Governor and Legislature on Commission activities, findings and
recommendations. (GC §§14999.8 and 14999.9)
4) Establishes the Economic and Workforce Development Program
(EWD) within the California Community Colleges System (CCCs),
for the purpose of advancing California's economic growth and
global competitiveness through high quality education and
services focusing on continuous workforce improvement,
technology deployment, and business development, consistent
with the current needs of the state's regional economies.
(Education Code (EC) § 88600-88651 et. seq.)
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5) Requires the Chancellor of the CCCs to establish performance
measures for the EWD program and contract for an independent
evaluation of the effectiveness of the program in achieving the
specific program goals and objectives and provide findings of
this evaluation to the Legislature no later than March 1, 2016.
(EC § 88650.5)
6) Establishes the Green Collar Jobs Council (GCJC) under the
California Workforce Investment Board to focus on developing
the framework, funding, strategies, programs, policies,
partnerships, and opportunities necessary to address the
growing need for a highly skilled and well-trained workforce to
meet the needs of California's emerging green economy.
Requires the GCJC to:
a) Assist in identifying and linking green collar job
opportunities with workforce development training
opportunities.
b) Align workforce development activities with regional
economic recovery and growth strategies.
c) Develop public, private, philanthropic, and
nongovernmental partnerships to build and expand the state's
workforce development programs, network, and infrastructure.
d) Provide policy guidance for job training programs for the
clean and green technology sectors to help them prepare
specific populations, such as at-risk youth, displaced
workers, veterans, formerly incarcerated individuals, and
others facing barriers to employment.
e) Develop, collect, analyze, and distribute statewide and
regional labor market data on California's new and emerging
green industries workforce needs, trends, and job growth.
f) Collaborate with community colleges and other educational
institutions, registered apprenticeship programs, business
and labor organizations, and community-based and
philanthropic organizations to align workforce development
services with strategies for regional economic growth.
g) Identify funding resources and make recommendations on how
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to expand and leverage these funds.
h) Foster regional collaboratives in the green economic
sector. (Unemployment Insurance Code. (UIC) § 15002)
16) Requires the CWIB report to the Legislature on the status of
GCJC activities, grants awarded, and its development and
implementation of a green workforce strategic initiative on or
before April 1, 2011, and annually each April 1 thereafter.
(UIC § 15003)
This bill:
1) Makes the following findings and declarations:
a) Numerous analyses have shown that California's world
leadership in clean energy and greenhouse gas emission
reductions law, and policy have led to major employment and
economic benefits as well as to significant environmental and
public health benefits.
b) In December 2014, the Advanced Energy Economy Institute
issued a report entitled "California Advanced Energy
Employment Survey," which showed that state advanced energy
policies have created over 430,000 jobs, an increase of
5 percent over 2013.
c) The report further showed that California was number one
in installed solar capacity and solar jobs, number one in
total advanced energy investment, number one in electric
vehicle sales, and number two in energy efficiency.
d) In order to ensure that California's clean energy and
climate programs are optimized for maximum economic benefit
and job creation, the State Air Resources Board, the State
Energy Resources Conservation and Development Commission, and
the Public Utilities Commission have all created advisory
committees to help them better understand the implications of
their clean energy and climate policies.
e) The purpose of this act is to create a single independent
blue ribbon committee to provide advice to these and other
agencies on the most effective ways to maximize California's
economic benefits and jobs growth via actions and investments
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in a cleaner, low-carbon economy.
2)Creates The Clean Energy and Low-Carbon Economic and Jobs Growth
Blue Ribbon Committee (Committee) in state government consisting
of seven members. Establishes the Committee's membership
according to the following: five members appointed by the
Governor, subject to Senate confirmation; one member appointed
by the Assembly Speaker; and one member appointed by the Senate
Committee on Rules. Provides that members shall serve a term of
four years and shall not receive per diem or other similar
compensation for serving as a Committee member, but may receive
reimbursement for actual expenses incurred in connection with
the performance of their duties.
3)Specifies that Committee members have expertise in economic,
financial, and policy aspects of clean energy economic growth,
job creation, workforce standards, and employment opportunities
for disadvantaged workers. Specifies that at least two members
of the Committee shall have experience working on economic
projects in disadvantaged communities.
4)Requires the Committee to advise state agencies on the most
effective ways to expend clean energy and greenhouse gas related
gas-related funds and to implement policies in order to maximize
California's economic and employment benefits. Requires the
Committee to:
a) Develop guidance for tracking and reporting jobs outcomes
for state clean energy and low-carbon investments and use
this information to evaluate jobs outcomes.
b) In consultation with the Labor and Workforce Development
Agency, develop guidance to measure the quantity and quality
of jobs created by state investments in clean energy and
low-carbon investments, as well as guidance to measure the
geographic and demographic distribution of jobs.
c) Advise state agencies on the most effective ways to
require responsible contractor standards, as applicable and
minimum training and skill certifications for workers to
ensure high-quality work for state clean energy and
low-carbon investments, and the most effective ways to
connect disadvantaged communities and other target
populations to good quality jobs and career pathways created
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by those investments.
d) In consultation with the California Workforce Investment
Board, advise state agencies on the most effective ways to
align state clean energy and low-carbon training funds with
existing state workforce development investments and
strategies.
1)Requires the Committee to provide an annual update to the
Governor and the appropriate policy and fiscal committees of the
Legislature on its activities.
2)Until January 1, 2021, requires The State Energy Resources
Conservation and Development Commission, the Public Utilities
Commission, the State Air Resources Board, and any other state
agency responsible for implementing clean energy and low-carbon
policies and programs to submit an annual progress report to the
Governor and the appropriate policy and fiscal committees of the
Legislature describing how it implemented or responded to the
advice, guidance, and any recommendations provided by the
Committee.
FISCAL
EFFECT: Unknown. This bill is keyed fiscal by Legislative
Counsel.
COMMENTS:
1. Purpose. The Author is the Sponsor of this measure. According
to the Author, there is no one state agency responsible for
oversight on job creation or maximizing economic growth as we
set new standards for reducing greenhouse gas emission. The
Author notes that other advisory bodies like the Environmental
Justice Advisory Committee (EJAC) and the Economic and
Technology Advancement Advisory Committee (ETAAC) were created
under the California Air Resources Board (ARB) whereas the Blue
Ribbon Committee created in this bill would report directly to
the Legislature. The Author states that this stand-alone
committee will be tasked with the primary role of advising
state agencies on the most effective way to implement clean
energy and greenhouse gas reduction policies in order to create
more jobs and encourage economic innovation.
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The Author provided a 2008 report, Energy Efficiency,
Innovation and Job Creation in California from the University
of California Berkeley Center for Energy, Resources and
Economic Sustainability (CERES) within the Department of
Agricultural and Resource Economics which aimed at capturing
the impacts of innovation in response to state policies. The
report found that household energy savings in California over
the last thirty years have contributed over one million
additional jobs to the state economy and that these jobs have
been concentrated in less energy intensive service sectors,
further reducing the state's carbon footprint and reinforcing
its transition to a post-industrial, greener and more
sustainable future.
The Author also provided a December 2014 from the Advanced
Energy Economy Institute, California Advanced Energy Employment
Survey, which noted, based on a survey of more than 2,000
companies doing business in California that advanced energy
employment in the state is currently 431,800, an increase of 5
percent over the prior year. The survey concluded that energy
efficiency is "far and away the largest segment of the
California advanced energy economy, representing 70 percent
(303,117) of jobs statewide."
2. Environmental Justice Advisory Committee (EJAC) and the
Economic and Technology Advancement Advisory Committee (ETAAC).
AB 32 required ARB to convene advisory committees as part of
the implementation of the Act. The Act required ARB to prepare
and approve a scoping plan for achieving the maximum
technologically feasible and cost-effective reductions in
greenhouse gas emissions from sources or categories of sources
of GHGs by 2020. On January 25, 2007, ARB appointed the first
EJAC to advise it on the Initial Scoping Plan and other climate
change programs. EJAC submitted its final recommendations on
the proposed AB 32 Scoping Plan on April 11, 2014, noting that,
"One of the aspirations of the EJAC and broader social justice
movements is that AB 32 can set the stage for investments in a
new green economy, creating new green career paths and
entrepreneurial opportunities. This scoping plan has a
stronger focus on the short lived climate pollutants and
greater acknowledgment of the need for deeper sector
reductions."
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ETAAC was tasked with advising ARB on activities that will
facilitate investment in, and implementation of, technological
research and development opportunities including, but not
limited to, identifying new technologies, research,
demonstration projects, funding opportunities, developing
state, national, and international partnerships and technology
transfer opportunities, and identifying and assessing research
and advanced technology investment and incentive opportunities
that will assist in the reduction of greenhouse gas emissions.
The Act also authorized ETAAC to advise the ARB on state,
regional, national, and international economic and
technological developments related to greenhouse gas emission
reductions. ETAAC was convened in January 2007 representing a
cross-section of the state's business, academic, government and
non-profit communities. ETAAC conducted
9 public meetings across the state and issued a final report in
2008, identifying five major strategies for promoting economic
and technology advancement:
(1) accelerating GHG emission reductions; (2) balancing a
portfolio of economic and technology policies; (3) creating
innovative public funding to complement private investment; (4)
fostering international and domestic partnerships; and (5)
ensuring effective leadership across all state agencies. The
final report noted that, "In addition to mitigating the dire
impacts of climate change, effective action on AB 32 can also
yield the co-benefits of cleaner air, new industries and jobs
here in California."
3. Workforce and Economic Development Efforts at the State Level.
There are a number of entities throughout state government
aimed at increasing workforce and economic development efforts,
with a particular recent emphasis on emerging technology, green
jobs and the green economy.
The federal Workforce Investment Act (WIA) of 1998 provides
funding for activities and programs for job training and
employment investment in which states may participate,
including work incentive and employment training outreach
programs. Following passage of the federal WIA, the state
established the California Workforce Investment Board (CWIB)
and charged it with the responsibility of developing a unified,
strategic planning process to coordinate various education,
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training, and employment programs into an integrated workforce
development system that supports economic development. There
are 49 Local Workforce Investment Boards that plan and oversee
the workforce investment system at the local level. The CWIB
is charged with developing a unified, strategic planning
process to coordinate various education, training, and
employment programs into an integrated workforce development
system that supports economic development. As such, the CWIB
has adopted "sector strategies" as the statewide framework for
workforce development and works with partners, including other
state agencies, to support the emergence of effective statewide
and regionally driven sector initiatives.
AB 3018 (Nunez, Chapter 312, Statutes of 2008) created the
California Green Collar Jobs Council (GCJC) to perform
specified tasks related to addressing the workforce needs that
accompany California's growing green economy under the purview
of the CWIB. The GCJC makes recommendations and creates
strategies for comprehensive and effective workforce training
opportunities to help prepare California's current and future
workforce to meet the skills demand from businesses supporting
the energy efficiency and clean energy sectors. The GCJC
issued a Proposed Jobs and Workforce Development Program
Elements for Carbon Reduction Investments in California in
January 2014 which proposed "a common approach to workforce
development and job creation for California's multiple public
investments in carbon reduction initiatives under the umbrella
of AB 32. According to the proposal, "California's energy
efficiency, clean energy, and clean transportation programs
currently invest several billion dollars each year in incentive
programs, public works projects, and a variety of other
contracts and subsidies?While the primary purpose of these
programs is to meet our energy and carbon reduction targets,
these investments create and transform jobs and businesses in a
variety of industries in California, particularly the energy,
building and construction, and transportation industries. State
agencies, utilities, and others responsible for these programs
are therefore drivers of economic development and job creation,
in addition to their primary role in implementing energy and
environmental policy." The GCJC states "specific program
elements for California's carbon reduction public investment
programs?can support a skilled workforce that performs the
quality work necessary to accomplish the state's ambitious
energy and environmental goals, while providing career-track
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jobs for California residents, including those from
historically disadvantaged communities."
The Economic and Workforce Development Program within the
California Community Colleges System works to advance
California's economic growth and global competitiveness through
education and services that contribute to continuous workforce
improvement, technology deployment, and business development
and are consistent with the current needs of the state's
regional economies. Local colleges and business partners form
consortia to identify regional workforce needs and priorities,
providing assistance to small businesses in the region through
local Economic and Workforce Development Centers and train
workers. The partnerships enable colleges to develop curricula
that address the training needs of local industry. The Centers
for Excellence within the EWD has coordinated on several
studies to assess the workforce needs of emerging and evolving
green industries and occupations.
4. Related Legislation. SB 274 (Morrell) declares the intent of
the Legislature to enact legislation that would promote job and
business growth and encourage economic development. ( Status :
The measure is currently pending in the Senate Committee on
Rules.)
AB 1196 (Eduardo Garcia) makes changes to the Commission for
Economic Development, including stating that the purpose of the
Commission is to provide continuing support and guidance on
public policies and economic development activities that
support job creation and business growth in California.
( Status: The measure is currently pending in the Assembly
Committee on Jobs, Economic Development and the Economy.)
AB 1030 (Ridley Thomas) requires a state agency that allocates
moneys from the Greenhouse Gas Reduction Fund to prioritize
projects that include project labor agreements with targeted
hire goals, community workforce agreements that connect local
residents to jobs or training opportunities, or partnerships
with training entities that have a proven track record of
placing disadvantaged workers in career-track jobs. ( Status:
The measure is currently pending in the Assembly Committee on
Natural Resources.)
5. Prior Related Legislation. AB 1315 (John A. Perez) of 2013
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would have eliminated the GCJC's requirement to develop a
strategic initiative and instead would have required the GCJC
to develop, and annually update, a common framework consisting
of specified elements to address workforce needs arising from
changes in the energy, building and construction,
transportation, and other industries impacted by state policies
to reduce greenhouse gas emissions.
( Status: The measure failed passage in the Senate.)
SB 1401 (Lieu) of 2012) would have established additional
requirements of the CWIB aimed at better aligning education and
workforce investment training systems to meet the needs of
today's economy and workforce, primarily through an emphasis on
sector strategies. ( Status: The bill was held in the Assembly
Committee on Appropriations.)
SB 1402 (Lieu, Chapter 361, Statutes of 2012) recast and
revised the EWD program within the CCC and extended the
program's sunset date from January 1, 2013, to January 1, 2018.
AB 1532 (John A. Perez, Chapter 807, Statutes of 2012) created
the Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act to set procedures for the
investment of regulatory fee revenues derived from the auction
of greenhouse gas allowances pursuant to the cap and trade
program adopted by the ARB under the California Global Warming
Solutions Act of 2006.
AB 2696 (Bass, Chapter 396, Statutes of 2010) required the
Green Collar Jobs Council to consult with appropriate state and
local agencies to identify opportunities to coordinate the
award of grant and green workforce training funds received by
the state under the federal American Recovery and Reinvestment
Act or any other funding sources. The bill also required the
California Workforce Investment Board, on or before April 1,
2011, and annually each April 1 thereafter, to report to the
Legislature on the status of Council activities, grants
awarded, and the development and implementation of a green
workforce strategic initiative.
AB 1394 (Bass) of 2009 would have made changes to provisions
governing the Green Collar Jobs Council that places additional
requirements on the Council and creates a mechanism for the
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receipt of funds from specified state and federal resources.
( Status: The measure was vetoed by Governor Schwarzenegger who
called it unnecessary.)
AB 2147 (Swanson) of 2008 would have established the Green Jobs
Corps Act of 2008 to fund grants for energy efficiency and
renewable worker training programs. ( Status: The measure was
held in the Assembly Committee on Appropriations.)
AB 2477 (Price) of 2008 set forth legislative findings and
declarations relating to green jobs and would have enacted the
California Green Jobs Act requiring the Employment Development
Department to establish green job training programs, as well as
a statewide database for identifying and tracking new jobs and
the skills needed to expand the renewable energy and
energy-efficient industries.
( Status: The bill was never heard in a policy committee of the
Legislature.)
AB 3018 (Nunez, Chapter 132, Statutes of 2008) enacted the
California Green Collar Act in order to address the state's
green economy workforce needs. The measure established the
California Green Collar Jobs Council under the California
Workforce Investment Board to develop the framework, funding
strategies, programs, partnerships, and opportunities necessary
to address the growing need for a highly skilled and
well-trained workforce to meet the state's growing green
economy. The bill required the Council to do the following:
assist in identifying and linking green collar job
opportunities with workforce development training opportunities
in local workforce investment areas; assist in encouraging
regional collaboration to meet regional economic demands;
create public, private, philanthropic, and nongovernmental
partnerships to build and expand the state's workforce
development programs, network, and infrastructure; provide
policy guidance for job training programs in the clean and
green technology sectors to assist and prepare specific
populations, such as at-risk youth, displaced workers,
veterans, formerly incarcerated individuals, and others facing
barriers to employment; develop, collect, interpret, and
distribute statewide and regional labor market data on
California's new and emerging green industries workforce needs,
trends, and job growth; identify funding resources and make
recommendations on how to expand and leverage these funds;
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foster regional collaborations in the green economic sector;
and report annually to the Legislature on the status of Council
activities and its development of an initiative.
AB 32 (Nunez and Pavley, Chapter 488, Statutes of 2006)
established the California Global Warming Solutions Act of
2006.
NOTE : Double-referral to Senate Committee on Environmental Quality.
SUPPORT AND OPPOSITION:
Support:
None on file as of March 31, 2015.
Opposition:
None on file as of March 31, 2015.
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