BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 412|
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                                      CONSENT 


          Bill No:  SB 412
          Author:   De León (D)
          Introduced:2/25/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 5/4/15
           AYES:  Hill, Bates, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NO VOTE RECORDED:  Berryhill

           SUBJECT:   The Commission for Economic Development


          SOURCE:    Author


          DIGEST:  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.


          ANALYSIS:   


          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  








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             (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  
                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.   








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             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 shall  
          appoint an advisory committee.
          
          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 10 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, however the biotechnology industry is  
          notably absent.

          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 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.   

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No










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          SUPPORT:   (Verified5/4/15)


          None received


          OPPOSITION:   (Verified5/4/15)


          None received



          Prepared by:  Sarah Mason / B., P. & E.D. / (916) 651-4104
          5/6/15 16:16:19


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