BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 412 Hearing Date: May 4, 2015
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|Author: |De León |
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|Version: |February 25, 2015 |
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|Urgency: |No |Fiscal: |No |
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|Consultant|Sarah Mason |
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Subject: The Commission for Economic Development.
SUMMARY: Adds the biotechnology industry to the list of segments of the
state's economy from which the Commission for Economic
Development shall appoint an advisory committee.
Existing law:
1) 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. (Government Code (GC) §§ 12096 - 12098.5)
2) 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
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require evaluation of demonstration and ongoing economic
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)
This bill adds the biotechnology industry to the list of
segments of the state's economy from which the Commission for
Economic Development shall appoint an advisory committee.
FISCAL EFFECT: None. This bill is not keyed "fiscal" by
Legislative Counsel.
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COMMENTS:
1. Purpose. The Author is the Sponsor of this bill. According
to the Author, biotechnology is an important segment of
California's economy. The Author cites an April 2013
Employment Development Department report entitled
"Biotechnology in California," which showed the unique
position California is in to lead the nation in
biotechnology, with the largest concentration of
biotechnology firms in the United States. According to the
Author, biotechnology application can be found across a
number of industries including medicine, manufacturing,
agriculture, energy, and the environment. The Author notes
that the Commission is authorized to appoint advisory
committees from outside its membership to represent specified
segments of the state's economy for the purpose of carrying
out its responsibilities and while segments of the state's
economy like aerospace, manufacturing, maritime, tourism, and
world trade are represented, the biotech segment of the
state's economy is missing. The Author believes that the
Commission should be authorized to appoint individuals to
represent this important segment of the state's economy.
2. Background. The Commission exists to provide continuing
bipartisan legislative, executive branch, and private sector
support and guidance for economic development in California.
Established in 1971, the Commission is chaired by the
Lieutenant Governor and comprised of 17 members: six
commissioners are members of the State Legislature and ten
members of the public are appointed by the Governor and
represent various industries throughout the state. The
Commission is authorized to appoint advisory committees from
outside its membership to represent specified segments of the
state's economy for the purpose of carrying out its
responsibilities. The segments of the state's economy that
are represented include aerospace, manufacturing, maritime,
tourism, and world trade.
According to a 2014 report published by BayBio and Biocom,
the life sciences associations representing the San Francisco
Bay Area and Southern California biotech clusters, the life
science industry in California continues to be a major source
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of employment, directly employing over 300,000 people in the
state and when jobs attributable to the life sciences are
factored in as well such as professional services, suppliers,
construction and others, that number climbs to over one
million jobs related to the industry. The report outlined
nearly $259 billion in economic activity in the state.
SUPPORT AND OPPOSITION:
Support: None on file as of April 29, 2015.
Opposition: None on file as of April 29, 2015.
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