BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Jim Nielsen, Chair
2015 - 2016 Regular
Bill No: SB 506 Hearing Date: 4/28/15
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|Author: |Fuller |
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|Version: |4/14/15 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Wade Teasdale |
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Subject: Economic development: military and aerospace
DESCRIPTION
*This measure was scheduled to be heard on Monday, April 27,
2015 in the Committee on Business, Professions and Economic
Development.
Summary:
1. Establishes a process for the designation of a local
retention authority to serve as the lead local government
entity responsible for efforts to retain local military
installations.
2. Creates the Military and Aerospace (MA) Program under
the Governor's Office of Business and Economic Development
(GO-Biz) to address concerns relating to state and local
defense retention, base conversion and base reuse
activities.
3. Establishes the Space Enterprise Development Program
within GO-Biz to foster activities that increase the
competitiveness of space enterprise in California,
including the commercial use of space, space vehicle
launches, space launch infrastructure, manufacturing,
applied research, technology development, economic
diversification, and business development.
Existing law:
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Provisions Related to Military Base Retention, Conversion and
Reuse
1. Establishes the Office of Planning and Research (OPR) in
the Governor's office and tasks OPR with the formulation,
evaluation and updating of long-age goals and policies for
land use, population growth and distribution.
2. Requires OPR to develop and adopt guidelines for the
preparation and content of the mandatory elements required
in city and county general plans that, among other
requirements:
a. Contain advice including recommendations for
best practices to allow for collaborative land use
planning of adjacent civilian and military lands and
facilities.
b. Encourage enhanced land use compatibility
between civilian lands and any adjacent or nearby
military facilities through the examination of
potential impacts upon one another.
c. Contain advice for addressing the effects of
civilian development on military readiness activities
carried out on military installations, operating
areas, training areas, training routes, airspace and
other territory adjacent to those installations and
areas.
3. Requires OPR to prepare and publish an advisory planning
handbook for use by local officials, planners, and builders
that explains how to reduce land use conflicts between the
effects of civilian development and military readiness
activities carried out on military installations, operating
areas, training areas, training routes, and airspace, and
other territory adjacent to those installations and areas.
4. Requires OPR to serve as the state's liaison to the
United States Department of Defense (DoD) in order to
facilitate coordination on issues of mutual significant
interest, particularly with regard to any proposed federal
Base Realignment and Closure (BRAC) actions.
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a. Provides that OPR shall:
i. Coordinate with DoD, other state
agencies and departments, local governments, and
other private and public entities to ensure the
sustainability of defense activities within the
state.
ii. Develop legislation
that supports the relationship between the state
and DoD;
iii. Work with federal
defense agencies to address regulatory activities
by state agencies that affect the sustainability
of defense operations within the state and;
iv. Develop any
regional or statewide strategies necessary for
the establishment and retention of the state's
military facilities and installations that are
potentially impacted by any proposed federal BRAC
actions.
5. Establishes the Military Base Reuse Authority Act to
plan for, finance and manage the transition of military
bases from military to civilian use.
6. Establishes GO-Biz within the Governor's Office and
authorizes it to:
a. Serve as lead entity for economic strategy and
the marketing of California on issues relating to
business development, private sector investment and
economic growth.
b. Coordinate development of policies and
criteria to ensure that federal grants administered or
directly expended by state government advance
statewide economic goals and objectives.
c. Market the business and investment
opportunities available in California by working in
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partnership with local, regional, federal, and other
state public and private institutions to encourage
business development and investment in the state.
d. Support small businesses by providing
information about accessing capital, complying with
regulations, and supporting state initiatives that
support small business.
7. Requires GO-Biz to designate Innovation Hubs (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.
8. Requires an iHub to: (a) provide counseling and
technical assistance in the areas of entrepreneurial
business planning and management, financing, and marketing
for small businesses; (b) provide expert advice to
entrepreneurs on starting a business, including legal
requirements for starting a business and access to
financing opportunities; (c) conduct business workshops,
seminars, and conferences with local partners; and (d)
facilitate partnerships between innovative startup
businesses, research institutions, and venture capitalists
or financial institutions.
9. Creates the Innovation Accelerator Account within the
California Economic Development Fund in the State Treasury
and states that, subject to the approval of the Department
of Finance, all moneys collected and received by GO-Biz for
California Innovation Initiatives from gifts, bequests, or
donations shall be deposited in the Innovation Accelerator
Account and continuously appropriated to GO-Biz pursuant to
requirements for a gift, bequest, or donation.
10. Specifies that GO-Biz is the primary state
agency authorized to attract foreign investments, cooperate
in international public infrastructure projects, and
support California businesses in accessing markets, and
requires the Director of GO-Biz to develop an international
trade and investment program attracting
employment-producing direct foreign investment to the state
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and provides support for California businesses in accessing
international markets and increasing exports.
11. Authorizes GO-Biz to establish international
trade and investment (ITI) offices outside of the U.S.
according to certain requirements. Establishes processes
and accountability measures for GO-Biz to accept private
moneys to fund, establish and operate international trade
offices.
12. Establishes the California Economic
Development Fund in the State Treasury for the purpose of
receiving federal, state, local, and private economic
development funds, and receiving repayment of loans or
grant proceeds and interest on those loans or grants.
Provides that upon appropriation by the Legislature, moneys
in the fund may be expended by GO-Biz to provide matching
funds for loans or grants to public agencies, nonprofit
organizations, and private entities, and for other economic
development purposes, consistent with the purposes for
which the moneys were received.
This bill:
Provisions relating to The Military and Aerospace Support Act
1. Enacts the Military and Aerospace Support Act.
2. Establishes the MA Program within GO-Biz to be proactive
in retaining and expanding military facilities, the
aerospace industry, and the jobs and intellectual capital
associated with them in the state. States that the purpose
of the MA Program is to provide a central clearinghouse for
all defense retention, conversion, and base reuse
activities in the state and interacting and communicating
with military installations in the state and to retain and
encourage growth in the aerospace and space flight
industries through technical and regulatory advice, grants
and other programs administered by GO-Biz or other state
agencies.
3. Authorizes GO-Biz to establish a Military Advisory
Council (Council) to provide input, information, technical
advice, or other comments to the MA Program on military
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related matters, including, but not limited to, active DoD
installations in California and defense conversion issues.
Provides that participation by Council members is voluntary
and there is no reimbursement for per diem or expenses.
Provides that the Council may include, but is not limited
to, representatives from any legislative office, state
agency, local government, industry, and civic or research
organizations that may have an interest in defense related
activities.
4. Requires the MA Program to do all of the following:
a. Develop and recommend to the Governor and
Legislature a strategic plan for state and local
defense retention and conversion efforts. The plan
shall address the state's role in assisting
communities with potential base closures and those
impacted by previous closures. GO-Biz may coordinate
with other state agencies, local groups, and
interested organizations on this strategic plan to
retain current DoD installations, facilities, bases,
and related civilian activities.
b. Conduct outreach to entities and parties
involved in defense retention and conversion across
the state and provide a network to facilitate
assistance and coordination for all defense retention
and conversion activities within the state.
c. Help develop and coordinate state retention
advocacy efforts on the federal level.
d. Until January 1, 2020, conduct an evaluation
of existing state retention and conversion programs
and provide the Legislature with recommendations on
the continuation of existing programs, including, but
not limited to, the possible elimination or alteration
of those programs and provide recommendations to the
Legislature on the necessity of new programs for
defense retention and adequate funding levels.
e. Update the plan prepared by the Defense
Conversion Council as it existed on December 31, 1998,
and any subsequent state agency reports, with the goal
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to minimize California's loss of bases and jobs in
future rounds of base closures. States that the new
plan shall include, but not be limited to, identifying
major installations in California, determining how
best to defend existing bases and base employment in
this state, coordinating retention activities with
communities that may face base closures, developing
data and analyses on bases in this state and
coordinating with the state congressional delegation,
the Legislature, and the Governor. Authorizes GO-Biz
to temporarily borrow technical, policy, and
administrative staff from other state agencies,
including the Legislature.
f. Serve as the primary state liaison with DoD
and its installations in this state and assist in
resolving any disputes or issues between the DoD and
state entities.
g. Review actions or programs by state agencies
that may affect or impact DoD installations or the
state's military base retention and reuse activities,
and recommend to the Governor and the Legislature
actions that may be taken to resolve or prevent
similar problems in the future.
5. Authorizes the MA Program, providing that funds and
resources are available, to also:
a. Provide a central clearinghouse for all base
retention or conversion assistance activities,
including, but not limited to, employee training
programs and regulation review and permit
streamlining.
b. Provide technical assistance to communities
with potential or existing base closure activities.
c. Provide a central clearinghouse for all
defense retention and conversion funding, regulations,
and application procedures for federal or state
grants.
d. Serve as a central clearinghouse for input and
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information, including needs, issues, and
recommendations from businesses, industry
representatives, labor, local government, and
communities relative to retention and conversion
efforts.
e. Identify available state and federal resources
to assist businesses, workers, communities, and
educational institutions that may have a stake in
retention and conversion activities.
f. Provide one-stop coordination, maintain and
disseminate information, standardize state endorsement
procedures, and develop fast-track review procedures
for proposals seeking state funds to match funding
from federal defense conversion programs.
g. Maintain and establish databases in fields
such as defense-related companies, industry
organization proposals for the state and federal
defense industry, community assistance, training, and
base retention, and provide electronic access to the
databases.
6. Authorizes GO-Biz to apply for grants and seek
contributions from private industry to fund MA Program
operations. Provides that any private funds shall be
deposited into the Military and Aerospace Account.
Authorizes GO-Biz to expend moneys in the account, upon
appropriation by the Legislature in the annual Budget Act,
only for the purposes outlined above related to the MA
Program. Provides that records of funds received and
expenditures made shall be subject to public disclosure and
a report describing the receipt and expenditure of these
funds shall be submitted to the Department of Finance, the
Assembly Committee on Budget, and the Senate Committee on
Budget and Fiscal Review at least biennially.
7. Requires GO-Biz to establish a Military Support Grant
program (MS Grant Program) to grant funds to communities
with DoD installations to assist them in developing a
retention strategy. States that to discourage multiple
grant applications for individual defense installations in
a region, the criteria for grants shall be drafted to
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encourage a single application for grant funds to develop a
single regional defense retention strategy. Requires that
the structure, requirements, administration, and funding
procedures of the grant program be submitted to the
Legislature for review at least 90 days prior to making the
first grant disbursement. States that GO-Biz may only make
a grant award if the local community provides at least 50
percent or more in matching funds or in-kind services, with
at least 50 percent of that match being in the form of
funding.
8. Requires GO-Biz to adopt necessary regulations to
implement the MA Program and MS Grant Program and shall
adopt these regulations as emergency regulations.
Provisions Related to Local Military Retention Entities
9. Defines the following terms for provisions related to
local retention entities:
a. "Military installation" means a base, camp,
post, station, yard, center, homeport facility for any
ship, or other facility under the jurisdiction of the
DoD.
b. "Affected local government" means any county
or city identified as located wholly or partly within
the boundaries of a military installation or as having
a sphere of influence over any portion of the
installation with responsibility for local zoning and
planning decisions.
10. Finds and declares the following:
a. Because of the tremendous economic impact that
military installations have on the state, it is in the
best interest of the state to facilitate their
retention.
b. It is the intent of the Legislature to
encourage cooperation among affected local governments
in their efforts to retain military installations in
this state by authorizing the creation of a joint
powers authority.
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11. The Legislature also encourages affected
local governments to engage other community-based
organizations in their retention activities.
12. Requires a local retention authority (RA) to
be recognized for each active military installation in this
state. Requires a list of RAs or their successors,
including, but not limited to, separate airport or port
authorities recognized as the local retention authority for
the military installations, to be maintained by OPR.
Authorizes a joint powers authority to be designated or
created if multiple affected local governments are
identified as an affected local government.
13. Requires the state to recognize an RA for
each active military installation if resolutions
acknowledging it as the RA are adopted by all Boards of
Supervisors (BOSs) and City Councils (CCs) for counties and
cities identified as affected local governments.
14. Provides that, if prior to January 1, 2004, a
local government was awarded grant moneys pursuant to any
predecessor agency for a specific military installation and
still qualifies as an affected local government, the
recipient local government shall be recognized by the state
as the RA unless resolutions acknowledging a different RA
are adopted by all County BOSs and CCs for counties and
cities identified as affected local governments.
15. Requires OPR, in consultation with GO-Biz, to
recognize an RA for each military installation if the
necessary resolutions are not adopted and forwarded before
October 1, 2016 to OPR.
16. States that the RA shall be recognized by all
state agencies as the local retention planning authority
for the military installation and requires the state to
encourage the federal government and other local
jurisdictions to recognize these RAs.
Provisions Related to the Space Enterprise Development Act
17. Enacts the Space Enterprise Development Act
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and defines the necessary terms:
18. Requires GO-Biz to implement a space
enterprise development program (Space Program) to foster
activities that increase the competitiveness of space
enterprise in California, including, but not limited to,
the commercial use of space, space vehicle launches, space
launch infrastructure, manufacturing, applied research,
technology development, economic diversification, and
business development. Authorizes GO-Biz to contract with
other state or private agencies, nonprofit corporations,
universities, firms, or individuals for the performance of
technical or specialized work, or for services related to
space enterprise development programs.
19. Authorizes GO-Biz to select a California
nonprofit corporation to assist in the administration of
space enterprise economic development activities through
programs, projects, grants, partnerships, networks, and
collaboration. Requires the nonprofit to be selected
through a solicitation process that includes criteria for
selection of the corporation, which includes, but is not
limited to, demonstrated experience in space enterprise and
the ability to perform space enterprise development
activities. Establishes requirements for a contract between
GO-Biz and the nonprofit which include quarterly reports of
the nonprofit's activities and finances, conflict of
interest provisions developed by GO-Biz and the ability for
GO-Biz to cancel the contract if the nonprofit does not
comply with requirements. Authorizes the nonprofit to
perform one or more of the following activities, as
determined contractually between GO-Biz and the nonprofit:
a. Serve as the Authority.
b. Pursue grants from the federal government or
from private businesses, foundations, or individuals,
for California space enterprise activities, including,
but not limited to, studies, services, infrastructure
improvements and modernization, and defense transition
programs, to the extent permitted by law.
c. Identify science and technology trends that
are significant to space enterprise and the state and
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act as a clearinghouse for space enterprise issues and
information.
d. Develop and implement a state strategy for
applying and commercializing technology to create
jobs, respond to industry changes, and foster
innovation and competitiveness in space enterprise.
e. Provide information to the Director relevant
to changes in federal, state, and local statutes and
regulations that will enhance the development of space
enterprise in California.
f. Provide information to GO-Biz regarding the
development of laws, regulations, decisions, or
determinations affecting the economic and employment
impacts of space enterprise in California.
g. Provide recommendations to the Director for
appropriate state funding mechanisms and amounts to
promote development of space enterprise in California,
including education and workforce development.
h. Provide recommendations to the director in the
form of strategic planning documents.
i. Review applications for, and promote, the
California Space Enterprise Competitive Grant Program.
20. Requires the Authority to designate
spaceports for the operation of launch sites or reentry
sites and specifies that any city, county, city and county,
special district, joint powers authority, or private
entity, may apply to the Authority for designation as a
spaceport. Sets forth application requirements. Designates
an entity that has a federal launch site operator's license
from the United States Secretary of Transportation under
the authority of the Commercial Space Launch Act (49 U.S.C.
Sec. 7101 et seq.) as a spaceport as long as they maintain
their federal designation and provide proof of their
extension to the Authority upon request. Clarifies that
these provisions do not apply to any launch site operator
who is federally licensed on or before January 1, 2005.
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21. Establishes the California Space Enterprise
Competitive Grant Program (Space Grant Program) within
GO-Biz to provide funding, upon appropriation by the
Legislature, for the development of space enterprise in
California. Authorizes entities conducting activities
intended to improve the competitiveness of space enterprise
in California, including public, private, educational,
commercial, nonprofit, or for-profit entities to apply for
grants. Clarifies that space enterprise activities include,
but are not limited to, the commercial use of space, space
vehicle launches, space launch infrastructure,
manufacturing, applied research, technology development,
economic diversification, and business development.
22. Requires GO-Biz or the nonprofit acting as
the Authority to issue solicitations that include minimum
eligibility and requirements for grants and that address
jobs created and retained by the implementation of the
project, cost sharing by other project participants, a
condition that grant funds will not be used to supplant
other project funds, a demonstration that a majority of the
project will be undertaken in California, an agreement
among all project participants as to intellectual property
rights relative to the project, the potential impact on the
state's economy, the cost-effectiveness of the project, the
importance of state funding for the viability of the
project, a demonstration of technical feasibility and an
assessment of programmatic risk. Requires an impartial
review panel to evaluate grant proposals, comprised of
technical and scientific experts and government
representatives from throughout the state who are
knowledgeable about activities related to space enterprise.
Requires applications to be ranked and include
recommendations as to the amount of state funding for each
grant application and. States that the granting of funds to
private entities serves a public purpose by assisting an
industry vital to the health and welfare of the State of
California.
23. Requires GO-Biz to adopt necessary
regulations to implement the Space Program and Space Grant
Program.
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BACKGROUND
Base Realignment and Closure
California has a strategic location, unique landscape and
valuable resources that help further U.S. military readiness for
actions around the globe. As a result, the DoD has made many
economic and technological investments in the state, including
large investments in land and military installations. The
state's unique resources and the military's investments have
fostered a strong partnership, and the ensuing collaboration is
vital for economic, resource management, and military readiness
reasons. State and local economies are influenced by the
military's presence. The burden of maintaining this partnership
often falls on the shoulders of cities and counties. In addition
to juggling the competing demands of expanding development,
promoting economic development and upholding environmental
quality standards, local governments must also consider the
needs of local military installations in their land use
planning. Traditionally, military installations were
strategically located in underdeveloped areas so as to avoid
land use conflicts. As the population of the state continues to
grow and the land use needs of communities continue to expand
outward, the need for stronger relationships and communication
between local governments and the military developed. Without
adequate communication and coordinated land use efforts,
military missions, quality of life and public safety are
increasingly jeopardized. Growth encroaching on a military
installation so as to hinder its mission can contribute to the
installation's closure.
The federal government worked its way through four initial
iterations of the BRAC process between late 1988 and 1993.
Nationally, that process led to the closing of 350 large and
small military bases and 55 major realignments. Reportedly, this
saved federal taxpayers more than $16 billion through 2001 and
six billion dollars more each subsequent year.
Prior to 1988, California had, by far, the largest military
presence of any state, and was home to 335,979 (14.7%) of the
Department of Defense's (DoD) total 2,275,264 personnel and 91
(18.3%) of the 495 major military bases then scattered around
the nation. Not surprisingly, the BRAC cuts fell heavily on
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California.
Through the first four rounds (1988, 1991, 1993, 1995), the
state suffered the loss of 93,546 uniformed and civilian DoD
jobs, which represented 53.8% of the net cuts nationally.
California lost nearly 28 percent of its military personnel,
while the rest of the nation saw a reduction of just 3.6
percent.
In terms of major base closures, California lost 24
installations; Texas, seven; Pennsylvania, six; Illinois and New
York, five each; and Florida, Indiana, Maryland and Virginia,
four each.
Prior to the mid 1990's, California's response to BRAC was
primarily focused on assisting local communities in the reuse of
shuttered military bases. In 1994, then-Governor Wilson issued
an Executive Order (W-87-94) which directed the Governor's
Office of Planning and Research to coordinate the state's effort
to assist local communities in developing strategies to protect
California bases from further closings, as a means of focusing
on the importance military bases have on the state's economy.
Subsequent legislation (AB 639, Alby, 1998 and SB 1099, Knight,
1999) codified an Office of Military Base Retention and Reuse
(OMBRR), placing it within the Technology, Trade and Commerce
Agency (TTCA) and outlining the responsibilities of the office,
including the creation of a Defense Retention Grant Program. The
grant program aided local communities in preparing for future
BRAC rounds. SB 926 (Knight and Ashburn, 2004) then renamed
OMBRR to the Office of Military and Aerospace Support (OMAS),
signifying the close relationship between military and aerospace
activities. OMAS exited through the 2005 BRAC round and
subsequently sunsetted in January of 2007.
Unlike previous rounds, the fifth BRAC round (2005) focused more
on realignment than closure. Along with saving money, a top
priority was military force readiness, consolidating assets onto
centralized installations from which they can be deployed
rapidly and flexibly in support of an evolving global situation,
and joint service missions. Implementation of the 2005 BRAC
recommendations was completed in 2011.
When a military installation is closed or its tenant units
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merely downsized, the communities in the area are adversely
affected, particularly in the short-term. Military and civilian
personnel face the loss or relocation of jobs. The uniformed
personnel expect to be transferred regularly, but civilian
workers on base usually are long-term local residents.
Local retailers who support the bases directly or indirectly
suffer serious revenue decreases and may even be forced to
close. Area governments lose revenues needed to maintain
services and infrastructure. In addition, the negotiation and
execution of land transfer, environmental cleanup, and
redevelopment of the properties can be a challenging, alien
process to communities.
The enabling BRAC statute typically provides a variety of
mechanisms for disposing of property at closed or realigned
military installations. In the past, some federal real property
has been made available by public benefit conveyances for
airport, education, and homeless assistance. Some have been
converted to military reserve component bases. Others have been
transferred to native American tribes. For some properties,
economic development conveyances have been awarded to local
redevelopment authorities. Some have been put up for public
sale.
The 2005 BRAC Commission recommended that Congress authorize
another BRAC round in 2015, and then every 8 years thereafter.
In 2012 then-Defense Secretary Leon Panetta called for two BRAC
rounds for 2013 and 2015, but Congress rejected Panetta's
requests and also declined to fund a Pentagon request in 2014 to
fund another BRAC round.
Aerospace in California
According to a recent report by the Los Angeles Economic
Development Corporation (LAEDC), the aerospace industry is
comprised of companies that manufacture aircraft (civil and
military), missiles, satellites and other space vehicles and the
companies that manufacture and distribute parts and components.
Buyers of these products include private industry, the military
and government space administrations. The report notes that
today, aerospace is a highly concentrated industry, dominated by
a small number of large firms that are supported by a large
number of smaller contractors. It is also characterized as a
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capital intensive and high-value added industry. Profitability
depends a great deal on technical expertise, innovation and the
ability to accurately price long-term contracts for programs
that may take years to design, develop and build. According to
the report, demand for aerospace products is driven by both
civil and military requirements.
The California Spaceport Authority (Authority) to provide was
originally created to recognize the support and unique services
required for the development of commercial launch,
manufacturing, and academic and research operations related to
space flight. A nonprofit corporation was designated as the
Authority with a mission of developing the commercial space
industry in California and assisting with defense conversion
efforts. AB 1475 (Bordonaro, Chapter 938, Statutes of 1997)
then designated a new nonprofit corporation as the Authority and
also created two grant programs to foster space flight-related
infrastructure and associated activities -The Space Flight
Competitive Grant Program and the Highway to Space Competitive
Grant Program ultimately administered by two separate nonprofit
entities, both responsible for the promotion of commercial space
flight activities in the state. In 2003, all space flight
related promotions and programs were consolidated under one
entity and grant program with the passage of AB 1532 (Nakano,
Chapter 627, Statutes of 2003) which tasked the Authority with
responsibility for attraction and promotion of space flight
industries in California and the administration of the space
enterprise development program. Following the 2008 economic
downturn, state and private funding for the Authority became
limited or reallocated. In 2010, the nonprofit corporation
selected to administer the space enterprise development program
shuttered and no action was taken to select another nonprofit to
administer the program. Language in the Government Code related
to the Space Enterprise Development Program was repealed in
2014.
California's robust aerospace industry suffered a significant
downsizing and restructuring with the decline in military
spending following the end of the Cold War and as a result of
numerous BRAC rounds. In the early 1990s, there were efforts to
retain many of California's aerospace companies and jobs through
the development of commercial space activities on California's
Central Coast at Vandenberg Air Force Base. These efforts
generated legislation (AB 279, 1993) to designate California's
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first Spaceport Authority. This designation then allowed this
Authority to lease federal property deemed excess capacity under
the Federal Commercial Space Launch Act. The excess property
was known as Space Launch Complex (SLC 6) [Formerly West Coast
launch site for the Space Shuttle].
According to a brief prepared by the California Research Bureau,
aerospace is one of the nations standout industries. Its
workforce is highly skilled and well paid~ its exports grow our
economy~ and it is a continuing source of innovation. Aerospace
encompasses a diverse range of productive activities, including
the manufacturing of both civilian and military aircraft, space
vehicles, guided missiles and associated parts. In 2011,
California's aerospace industry produced over $31 billion worth
of goods. Nationally, the aerospace industry produced more than
$183 billion in goods in 2011. California represented 17 percent
of this total. This was a slight increase over recent years.
Overall, aerospace represented more than 72 percent of all
transportation equipment manufacturing in California in 2011.
Across all manufacturing sectors, aerospace contributed more
than 6.3 percent of the $495 billion in manufactured goods
produced in California in 2011. (Source: California Research
Bureau, "CRB Briefly Stated: Aerospace Manufacturing in
California's Economy," April 2012)
COMMENT
1.According to the Author (paraphrased) :
Despite the tremendous economic impact and jobs associated
with defense and aerospace in California, there is no
statewide entity designated in law responsible for helping
retain military installations and grow aerospace activities.
This bill recognizes the unique synergy between DoD
activities in the state and aerospace/space flight
industries, by designating GO-Biz as the lead state entity
for fostering these two economic activities.
Nothing in current law ensures there is a continuity of
actions or focus from one administration to the next with
respect to military installation issues and future base
realignment and closures. While GO-Biz has the iHUB program
with centers of innovation throughout the state that are
typically focused on regional economic clusters (including
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the Innovation Hub for Defense, Energy and Aerospace (iDEA
Hub)), this system does not provide for a statewide focus on
military installations as well as aerospace and spaceflight
activities. The iDEA Hub region encompasses California's
Kern, Ventura, Orange, Los Angeles, and San Diego counties
but leaves out other significant aerospace/defense regions
like the Central Coast and Silicon Valley.
This bill provides continuity on issues related to military
installations by designating GO-Biz as the statewide lead on
fostering the state's military, aerospace and spaceflight
sectors and provides flexibility for the administration to
organize and operate programs by allowing GO-Biz to contract
with other state or private agencies, nonprofit corporations,
universities, firms, or individuals to fulfill any of its
duties.
California has benefited significantly from the spending on
the war on terror starting in the early 2000's and that with
a new round of base closures always on the horizon,
California cannot wait to implement measures aimed at keeping
military bases open and operational. Bigger and more
immediate threats to military installations other than BRAC
include federal budget reductions, non-BRAC force
realignments and reductions in aircraft inventory. During
past BRAC rounds, cities and counties within California were
pitted against each other, fighting to keep their local base
from closing and when a base was closed, there was confusion
and debate over which local entity was responsible for the
conversion and cleanup of the base. In some communities,
multiple local jurisdictions claimed management and
development rights to the closed base.
A process was established to end these disputes that involved
bringing the communities together to select single local base
reuse authority. The law was then expanded to select a single
local retention authority responsible for fending off future
BRAC rounds and to promote the retention of the selected
military base. This law was in effect during the 2005 BRAC
round, but was subsequently sunsetted in January 2007. This
bill would reestablish a process for one local retention
authority to be recognized for each military installation in
the state.
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2.Related Legislation
Current Year:
1. SB 121 (Fuller, 2015 ) requires that school construction
projects on military installations that are eligible for
specified federal grants are given priority for funding
under the State School Facility program. (Pending Senate
Committee on Education)
2. AB 442 (Irwin, 2015 ) codifies the Governor's Military
Council, under the direction of the California Military
Department, and provides for appointment to the council by
the Governor. (Pending Assembly Floor)
3. AB 1080 (Obernolte, 2015 ) authorizes the Department of
Finance to find that an agreement between a former
redevelopment agency and a joint powers authority that was
created to exercise the powers provided by the Military
Base Reuse Authority Act is an enforceable obligation.
(Pending Assembly Committee on Local Government)
4. AJR 11 (Burke and Atkins, 2015 ) memorializes the
President and the Congress of the United States to
recognize the unique military value of California's defense
installations and the disproportionate sacrifices
California has endured in previous BRAC rounds. (Pending
Senate Committee on Rules)
Prior Years:
1. AB 1997 (Gorell, 2013 ) provided that tax exemptions for
persons engaged in aircraft manufacturing, for use
primarily in manufacturing, processing, refining,
fabricating, or recycling of property, or research and
development also applies to local sales and use taxes and
those specified state taxes with respect to qualified
tangible personal property purchased by a qualified person
that is engaged in aircraft manufacturing of unmanned
aerial vehicles. (Referred to but not heard in Assembly
Committee on Revenue and Taxation)
2. AB 250 (Holden, Chapter 530, Statutes of 2013 ) codified
the iHub program at GO-Biz and expanded the program.
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3. AB 737 (Fox, 2013 ) would have required GO-Biz to prepare
and submit a proposal for an unmanned aircraft test site to
the FAA on or before May 6, 2013. (Referred to but not
heard in Senate Committee on Business, Professions and
Economic Development)
4. SB 245 (Rubio, 2011 ) would have re-established the
Office of Military Support within the Governor's Office of
Planning and Research (OPR) for the purpose of serving as a
clearinghouse for state activities related to the military,
including base closures.( Died on Suspense, Assembly
Committee on Appropriations)
5. AB 29 (John A. Pérez, Chapter 475, Statutes of 2011 )
established GO-Biz within the Governor's Office for the
purpose of serving as the lead entity for economic strategy
and marketing of California on issues relating to business
development, private sector investment and economic growth.
6. AB 2287 (Bass, 2010 ) would have established the Office
of Economic Development, which includes the California
Business Investment Services Program, within the
then-Governor's Economic Development Office.
(Gut-and-amended into a different topic while in its
initial Assembly policy committee)
7. AB 2734 (John A. Perez, 2010 ) created the Office of
Economic Development which included the California Business
Investment Services Program within the Governor's Office.
Required the Office to serve the Governor as the lead
entity for economic strategy and marketing of California
and make recommendations to the Governor and Legislature
regarding polices, programs, and actions to advance
statewide economic goals. (Vetoed.)
8. SB 1259 (DeSaulnier, 2010 ) would have created the
Economic Development and Job Creation Agency and require
the new agency to perform duties relating to economic
development and job creation. It requires the secretary to
develop a reorganization plan and propose a structure for
the agency. (Died on Suspense, Senate Committee on
Appropriations)
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9. AB 2711 (Portantino, 2008 ) Would have required the
Secretary of Business, Transportation, and Housing Agency
(BT & H) to develop a comprehensive state technology and
innovation plan. Included a provision that extended the
sunset date for the Office of Military and Aerospace
Support (OMAS) from January 1, 2009 to January 1, 2012.
(Died on Suspense, Assembly Committee on Appropriations)
10. SB 1698 (Ashburn, Chapter 681, Statutes of
2006 ) extended the authority for OMAS for two years, until
January 1, 2009, and expanded the duties of the OMAS to
include outreach to the aerospace industry for the purpose
of fostering aerospace enterprises in California.
11. AB 2565 (Parra, Chapter 763, Statutes of
2004 ) requires that the strategic plan originally prepared
by the California Defense Retention and Conversion Council
as it existed in 1998 be updated.
12. AB 1202 (Laird, Chapter 330, Statues of 2005)
replaced obsolete references to the Defense Conversion
Council with OMAS and revised the definition of military
bases, required the Director of OPR to select a mediator,
in consultation with the federal Office of Economic
Adjustment, to reach agreement among different
jurisdictions on a local reuse entity in the event that the
multiple local governments cannot agree on a single reuse
entity for each base.
13. SB 926 (Knight and Ashburn, Chapter 907,
Statutes of 2004 ) consolidated the defense retention and
conversion efforts in the state. The bill changed the name
of OMBRR to OMAS, transferred its functions to BTH, and set
forth its duties and authority with respect to state and
local defense retention and conversion, consolidating all
such programs under a single office within state
government. The bill also provided for the use of state
Infrastructure and Economic Development Bank funds by local
governments to develop projects on or near a military base
that enhance the base's mission.
14. AB 1532 (Nakano, Chapter 627, Statutes of
2003 ) transferred the Technology Planning Program,
California Space Enterprise Competitive Grant Program, and
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the Challenge Grant Program in the TTCA to the BTH and
referred to these programs as the Space Enterprise
Development Program.
15. SB 296 (Soto, 2001 ) would have enacted the
Department of Defense Operational Effectiveness
Preparedness Act to help prevent any further base closures
in the state. (Referred but not heard in Senate Committee
on Governmental Organization)
16. SB 1468 (Knight, Chapter 971, Statutes of
2002 ) required cities and counties to include military
installations, aviation routes, airspace, and readiness
activities in their state-mandated general plans, and
requires OPR to provide guidance to local officials as part
of its advisory General Plan Guidelines.
17. SB 1099 (Knight, Chapter 425, Statutes of
1999 ), the California Defense Retention and Conversion Act,
reconstituted the defunct Defense Conversion Council as the
California Defense and Retention and Conversion Council as
well as required the establishment of a Defense Retention
Grant Program.
18. AB 639 (Alby Chapter 952, Statutes of 1998 )
enacted the Defense Conversion, Reuse and Retention Omnibus
Act which was designed to assist communities in both
closure and retention efforts.
19. AB 1475 (Bordonaro, Chapter 938, Statutes of
1997 ) established the California Space and Technology
Alliance as the primary California Space Authority to
oversee the operations of the California Space Flight
Competitive Grant Program and the Highway to Space Program.
20. SB 268 (Roberti, Chapter 441, Statutes of
1993 ) created the Defense Conversion Matching Grant
Program, administered by the Office of Strategic Technology
within the Trade and Commerce Agency, and overseen by the
Defense Conversion Council. Also appropriated $5.5 million
from the Petroleum Violation Escrow Account to fund defense
conversion efforts.
21. SB 458 (Hart, Chapter 445, Statutes of 1993 )
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enacted the California Defense Conversion Act of 1993 to
enable the state to assume a leadership role in converting
to a peacetime economy. Also created a 15-member Defense
Conversion Council in the Trade and Commerce Agency with
prescribed powers and duties, including the establishment
of criteria for designation of regional technology
alliances.
POSITIONS
Sponsor: Author
Support: None on file (4/24/2015)
Oppose: None on file (4/24/2015)
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