BILL NUMBER: AB 1558 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 22, 2010
AMENDED IN SENATE SEPTEMBER 4, 2009
INTRODUCED BY Assembly Member V. Manuel Perez
MARCH 11, 2009
An act to amend Sections 14010, 14020, 14021, 14022,
14023, 14024, 14025, 14026, 14030, 14030.2, 14034, 14074, and 14076
of, to add Section 14000.7 to, and to repeal Section 14075 of, the
Corporations Code, to amend Sections 4532, 7073, 7079, 7081, 7082,
7085, 7086, 7114.5, 7117, 7280.6, 7280.8, 7281.4, 8684.2, 13994,
13994.1, 13994.5, 13994.6, 13994.8, 13994.9, 13994.11, 13994.12,
13996, 13996.1, 13996.2, 13996.45, 13996.5, 13996.55, 13996.6,
13996.65, 13996.7, 13996.75, 13999.1, 13999.2, 13999.4, 15570, 15901,
63021, 63021.5, 65054, 65054.1, 65054.3, 65054.4, and 99502 of, to
add Section 65054.5 to, and to repeal Chapter 1.5 (commencing with
Section 12095) of Part 2 of Division 3 of Title 2 of, the Government
Code, and to amend Sections 9101, 9102, 9600.5, 10200, 10201,
10201.5, 10202, 10205, 10213, 10214, 10510, 10529, 10530, and 10533
of the Unemployment Insurance Code, relating to state government.
An act to add Sections 15571 and 15572 to, and to
repeal and add Section 15570 of, the Government Code, relating to
economic development, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1558, as amended, V. Manuel Perez. State government.
(1) Existing law establishes the Labor and Workforce Development
Agency in state government, and provides that the Secretary of Labor
and Workforce Development, the executive officer of the agency, is
directly responsible to the Governor for the operations of each
department, office, and unit within the agency. Existing law requires
the secretary to lead the preparation of a biennial California
Economic Development Strategic Plan, as specified, and to convene a
biennial economic strategy panel, its membership to be composed as
specified, to provide recommendations regarding the plan. Existing
law requires the secretary to undertake this process anew in each
succeeding 2-year cycle in order to update the economic strategy
prior to October 31 of each succeeding 2nd year.
This bill would revise and recast these provisions relating to the
preparation of the California Economic Development Strategic Plan,
which this bill would rename the California Economic and Workforce
Development Strategy, and would instead require that strategy to be
updated every 5 years rather than biennially. The bill would also
require the strategy to make recommendations regarding an economic
development plan for the state covering a 5-year period, and to
contain specified items. The bill would require the Secretary of
Labor and Workforce Development to lead the preparation of the
strategy, and authorize the secretary to call on the assistance of
the California Economic Strategy Panel and the California Workforce
Investment Board in fulfilling this duty. The bill would also require
the secretary to prepare a preliminary strategy, to post that
document on the agency's Internet Web site, and to submit written
notice of that document's posting to the relevant policy and fiscal
committees of each house of the Legislature by July 1, 2011. This
bill would also require the relevant policy and fiscal committees of
each house of the Legislature to review the preliminary strategy and
hold hearings regarding the preliminary strategy, as specified. The
bill would require the secretary to prepare the final version of the
strategy within 2 months of the final hearing held by a policy or
fiscal committee of either house of the Legislature on the
preliminary strategy, and to update the strategy on or before October
31 of each succeeding 5th year.
(2) Existing law provides for the composition of the California
Economic Strategy Panel, as specified.
This bill would establish the panel within the office of the
Secretary of Labor and Workforce Development and require it to
research, facilitate outreach, and make policy and fiscal
recommendations to the Governor and the Legislature on issues
relating to economic and workforce development. The bill would
require the secretary to be the chairperson of the panel, and would
provide for the membership of the panel, as specified. The bill would
require the panel to meet upon the call of the secretary, who would
be required to call at least 2 meetings of the panel per year. The
bill would require members of the panel to serve without
compensation, but would authorize their reimbursement for actual
expenses incurred in connection with their duties.
This bill would require the panel, as part of its deliberations in
preparing the strategy, to create an assessment addressing specified
considerations. The bill would also require the panel to review the
strategy within 5 years of the date of its finalization, and every 5
years thereafter, and to make recommendations on how to update the
strategy.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
(1) Existing law, the California Small Business Financial
Development Corporation Law, creates the Office of the California
Small Business Board and imposes numerous duties on the Secretary of
Business, Transportation and Housing.
This bill would eliminate the duties of the secretary and transfer
modified duties under these provisions to a director and executive
director of a renamed Economic and Employment Development Department,
which would succeed to some of the duties of the existing Employment
Development Department under this bill.
(2) Existing law, the Target Area Contract Preference Act, defines
the term "distressed" for purposes of its provisions as, among other
things, being an urbanized area identified by the Office of Planning
and Research.
This bill would eliminate the Office of Planning and Research from
identifying the area, and instead require the Department of Finance
to make the identification.
(3) Existing law, the Enterprise Zone Act, imposes numerous duties
on the Employment Development Department and other state entities to
promote economic development within specified geographic areas.
This bill would eliminate the duties of the Employment Development
Department under these provisions and instead transfer them to the
renamed entity, the Economic and Employment Development Department.
This bill would also modify other duties under these provisions.
(4) Existing law, the Local Agency Military Base Recovery Area
Act, imposes numerous duties on the California Environmental
Protection Agency (Cal EPA) and the Office of Permit Assistance.
This bill would eliminate certain duties of Cal EPA and instead
transfer them to state licensing and regulatory bodies, generally.
This bill would state that the Office of Permit Assistance is within
the renamed Economic and Employment Development Department.
(5) Existing law, the Burton-Stull Vietnam Veterans Employment
Act, imposes duties on the Employment Development Department.
This bill would eliminate the duties of the Employment Development
Department and transfer them to the renamed Economic and Employment
Development Department.
(6) Existing law, the California Disaster Assistance Act,
authorizes the Business, Transportation and Housing Agency to adopt
specified regulations to implement a loan program.
This bill would eliminate these duties of the Business,
Transportation and Housing Agency and transfer them to the Office of
Small Business or the renamed Economic and Employment Development
Department, as specified.
(7) Existing law creates the California Commission for Industrial
Innovation within the office of the Governor to encourage industrial
innovation and develop policies to maintain the state's leadership in
the national economy.
This bill repeals these provisions, thereby eliminating the
commission.
(8) Existing law establishes the Manufacturing Technology Program
and imposes duties on the Business, Transportation and Housing Agency
under the program.
This bill would eliminate the duties of the agency under these
provisions and transfer them to the Office of Technology and
Innovation, which is created within the renamed Economic and
Employment Development Department. This bill would also impose
specified duties under this program on the new department and a
director and executive director of the department.
(9) Existing law imposes specified duties on the Business,
Transportation and Housing Agency and the secretary of the agency
with regard to international trade and investment.
This bill would eliminate the duties of the Business,
Transportation and Housing Agency and its secretary and transfer them
yo the renamed Economic and Employment Development Department. This
bill would also rename the Economic Strategy Panel as the California
Economic and Workforce Development Panel.
(10) Existing law establishes the Regional Technology Alliance
Program within the Business, Transportation and Housing Agency, and
imposes specified duties on the agency and its secretary.
This bill would eliminate the duties of the Business,
Transportation and Housing Agency and its secretary and transfer them
to the Office of Technology and Innovation or to the renamed
Economic and Employment Development Department, as specified.
(11) Existing law creates the Space Enterprise Development Act and
imposes duties on the Business, Transportation and Housing Agency
and its secretary.
This bill would eliminate the duties of the Business,
Transportation and Housing Agency and its secretary and transfer them
to the Office of Technology and Innovation or on the renamed
Economic and Employment Development Department, as specified.
(12) Existing law imposes specified duties on the Secretary of
Business, Transportation and Housing regarding a biennial California
Economic Development Strategic Plan.
This bill would rename the plan the California Economic and
Employment Development Strategic Plan. The bill would also eliminate
the duties of the Business, Transportation and Housing Agency and its
secretary and transfer modified duties to a director of the renamed
Economic and Employment Development Department. The bill would
specifically modify the requirement of a biennial strategic plan to
one every 5 years.
(13) Existing law establishes the Infrastructure and Economic and
Development Bank within the Business, Transportation and Housing
Agency.
This bill would eliminate the duties of the Business,
Transportation and Housing Agency and its secretary and transfer them
to the renamed Economic and Employment Development Department.
(14) Existing law creates the Office of Small Business Advocate
within the Office of Planning and Research, and imposes various
duties. Existing law requires the Governor to appoint the director of
the Office of Small Business Advocate.
This bill renames the office as the Office of Small Business,
eliminates the duties of the Office of Planning and Research, and
transfers modified duties to the renamed Economic and Employment
Development Department. This bill also eliminates the Governor's
requirement to appoint a director, and instead requires the Small
Business Board to appoint the director. This bill establishes the
Small Business Board, consisting of specified members, to perform
certain duties, adopt bylaws, and hold public hearings.
(15) Existing law requires the Office of Planning and Research to
maintain and update a list of state agreements with foreign
governments.
This bill would eliminate this duty of the Office of Planning and
Research and transfer it to the office of the Governor.
(16) Existing law imposes various duties on the State Job Training
Coordinating Council, Employment Development Department, the
Business, Transportation and Housing Agency, and its secretary.
This bill would eliminate certain specified duties of the State
Job Training Coordinating Council, Employment Development Department,
the Business, Transportation and Housing Agency, and its secretary
and transfer them to the renamed Economic and Employment Development
Department. This bill would also rename the federal Job Training
Partnership Act as the Workforce Investment Act.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15570 of the
Government Code is repealed.
15570. (a) The secretary shall lead the preparation of a biennial
California Economic Development Strategic Plan. In fulfilling this
duty, the secretary shall do the following:
(1) Review the recommendations made by the California Economic
Strategy Panel in their biennial economic development strategic plan
document. This document shall make recommendations regarding an
economic development strategic plan for the state, covering a
two-year time period and containing a statement of economic goals for
the state, a prioritized list identifying significant issues learned
from economic development strategic plan panel meetings, proposals
for legislation, regulations, and administrative reforms necessary to
improve the business climate and economy of the state, evaluation of
the effectiveness of the state's economic development programs, a
list of key industries in which the state shall focus its economic
development efforts, and strategies to foster job growth and economic
development covering all state agencies, offices, boards, and
commissions that have economic development responsibilities.
(2) Convene a biennial economic strategy panel to provide
recommendations regarding a California economic development strategic
plan. This panel shall conduct meetings in Sacramento, all cities of
the state with populations over 500,000, and in major cities of
other regions of California as designated by the secretary. The
secretary shall invite businesses, labor unions, organizations
representing the interests of diverse ethnic and gender groups, local
government leaders, academic economists and business professors,
chambers of commerce and other business organizations, government
agencies, and key industries to contribute to the preparation of the
recommended economic strategy. These meetings shall address at least
the following matters of concern:
(A) Strengths and weaknesses of the California economy and the
state's prospects for future economic prosperity.
(B) Emerging and declining industries in California and elsewhere.
(C) Effectiveness of California's economic development programs in
creating and retaining jobs and attracting industries.
(D) Adequacy of state and local physical and economic
infrastructure.
(E) Government impediments to economic development.
(F) The development of a system of accountability for use in the
annual state budget process and in the legislative process to measure
the performance of all state policies, programs, and tax
expenditures intended to stimulate the economy. In developing a
system of accountability, the panel shall, by using only existing
resources and without future budget augmentation made for this
purpose, do all of the following:
(i) Develop a standard definition of economic development.
(ii) Develop, for use in state law, standard measurements of real
per capita income, job growth, new business creation, private sector
investment, minority entrepreneurship, and income inequality.
(iii) Survey and evaluate efforts in other states to develop
accountability measures for public investments in economic
development.
(iv) Determine whether a return on investment calculation is
feasible for public investments in economic development.
(v) Conduct a comparative study of various methodologies for
preparing the economic development sections of a state budget,
including unified functional budget, zero-based budget, and
performance-based budget methodologies.
(vi) Study the feasibility of statutory disclosure requirements on
specified publicly funded subsidies to private sector businesses.
(vii) Submit a report of its findings and recommendations
regarding this subparagraph to the Legislature no later than one year
after its first meeting after January 1, 2005.
(b) The panel shall be composed of the following 15 members:
(1) The Secretary of Labor and Workforce Development, who shall
serve as chair of the panel.
(2) Eight persons appointed by the Governor.
(3) The Speaker of the Assembly or his or her designee.
(4) The President pro Tempore of the Senate or his or her
designee.
(5) The Minority Leader of the Assembly or his or her designee.
(6) The Minority Leader of the Senate or his or her designee.
(7) One person appointed by the Speaker of the Assembly.
(8) One person appointed by the Senate Committee on Rules.
(c) The panel shall be representative of state government,
business, labor, finance, and academic institutions, and shall be
broadly reflective of the state's population as to gender, ethnicity,
and geographic residence within California.
At least one-half of all the persons on the panel shall be from
the private sector and at least two appointments shall be from
private businesses with less than 50 employees. At least two
appointments shall be from rural areas of the state. Beginning
January 1, 2004, appointments to the panel shall be for four-year
terms, except that the Governor's appointments made pursuant to
paragraph (2) of subdivision (b) shall be made as follows:
(1) Four members shall be appointed on January 1, 2004, and every
four years thereafter.
(2) Four members shall be appointed on January 1, 2004, for a
two-year term.
(3) Upon the expiration of the initial appointments made pursuant
to paragraph (2), four members shall be appointed on January 1, 2006,
and every four years thereafter.
(d) The secretary shall deliver copies of the economic strategy
panel's recommended California economic development strategic plan to
every constitutional officer, legislator, member of the Governor's
cabinet, members of the economic development strategic plan panel,
and every state agency, office, board, and commission having economic
development responsibilities.
(e) In each succeeding two-year cycle, the secretary shall
undertake this process anew, so as to update the economic strategy on
or before October 31 of each succeeding second year.
SEC. 2. Section 15570 is added to the
Government Code , to read:
15570. (a) The secretary shall lead the preparation of the
California Economic and Workforce Development Strategy. In fulfilling
this duty, the secretary shall call on the assistance of the
California Economic Strategy Panel, established pursuant to Section
15571, and the California Workforce Investment Board, established
pursuant to Article 1 (commencing with Section 14010) of Chapter 3 of
Division 7 of the Unemployment Insurance Code.
(b) The strategy shall make recommendations regarding an economic
development strategic plan for the state covering a five-year time
period, and shall contain all of the following:
(1) A statement of economic goals for the state.
(2) A prioritized list of significant issues facing the economy of
the state.
(3) Proposals for legislation, regulations, and administrative
reforms necessary to improve the business climate and economy of the
state.
(4) An evaluation of the effectiveness of the state's economic
development programs.
(5) A list of key industries in which the state shall focus its
economic development efforts.
(6) Strategies to foster job growth and economic development
covering all state agencies, offices, boards, and commissions that
have economic development responsibilities.
(c) Based on the assessment completed by the California Economic
Strategy Panel pursuant to Section 15571, the strategy shall also
include, at a minimum, all of the following components:
(1) Policy goals, objectives, and recommendations necessary to
implement a comprehensive economic and workforce development
strategic plan for the state, identifying the priority for each
within the overall strategy.
(2) Measurable outcomes and timelines for implementing the goals,
objectives, and recommendations of the strategy, showing the way in
which key policy development and implementation efforts are
coordinated with emerging issues.
(3) An identification of impediments to achieving the goals,
objectives, and recommendations described in paragraph (1) and the
way in which they will delay the state's ability to improve its
competitive position.
(4) An identification of key stakeholder partnerships to use in
implementing the recommendations.
(5) An identification of options for funding the goals,
objectives, and recommendations described in paragraph (1).
(6) An identification of an organizational structure for the
implementation of the policies, programs, and services recommended in
the strategy.
(d) (1) The secretary shall prepare a preliminary California
Economic and Workforce Strategy, post that document on the agency's
Internet Web site, and submit written notice of that document's
posting to the relevant policy and fiscal committees of each house of
the Legislature by July 1, 2011.
(2) Development of the preliminary strategy pursuant to this
subdivision shall be funded from private donations.
(e) The relevant policy and fiscal committees of each house of the
Legislature shall review the preliminary strategy, and hold hearings
regarding the preliminary strategy within 90 days of the date that
notice of that document's posting is sent to the relevant policy and
fiscal committees of each house of the Legislature.
(f) (1) Within two months of the final hearing held by a policy or
fiscal committee of either house of the Legislature regarding the
preliminary strategy, the secretary shall prepare the final version
of the strategy.
(2) Upon the final strategy's completion, the Secretary of Labor
and Workforce Development, the California Economic Strategy Panel,
the Secretary of Business, Transportation and Housing, and the
Secretary of Food and Agriculture shall post the preliminary and
final strategies on each of their agencies' Internet Web sites.
(3) The Secretary of Labor and Workforce Development shall submit
written notice of the completion of the final strategy and its
posting to the agency Internet Web sites specified in paragraph (2)
to the relevant policy and fiscal committees of the Legislature as
well as every state agency, office, board, and commission having
economic and workforce development responsibilities.
(g) In each succeeding five-year cycle, the secretary shall update
the strategy, pursuant to the procedures set forth in this section,
on or before October 31 of each succeeding fifth year.
SEC. 3. Section 15571 is added to the
Government Code , to read:
15571. (a) The California Economic Strategy Panel within the
office of the Secretary of Labor and Workforce Development shall
research, facilitate outreach, and make policy and fiscal
recommendations to the Governor and the Legislature on issues related
to economic and workforce development.
(b) The panel shall include all of the following members:
(1) The Secretary of Labor and Workforce Development, who shall
serve as the chairperson of the panel.
(2) The Director of the Governor's Office of Economic Development.
(3) The Secretary of Business, Transportation and Housing.
(4) The Secretary of Food and Agriculture.
(5) Eight persons appointed by the Governor, as specified in
paragraph (1) of subdivision (c).
(6) The Speaker of the Assembly or his or her designee.
(7) The President pro Tempore of the Senate or his or her
designee.
(8) The Minority Leader of the Assembly or his or her designee.
(9) One person appointed by the Speaker of the Assembly.
(10) One person appointed by the Senate Committee on Rules.
(11) The California Small Business Advocate.
(12) The Executive Director of the California Council on Science
and Technology.
(c) (1) Of the eight members appointed by the Governor, each shall
represent one of the following categories:
(A) Local government.
(B) Small businesses.
(C) Manufacturing.
(D) Workforce development.
(E) Economic development.
(F) Labor.
(G) Finance.
(H) Academic institutions.
(2) The members appointed by the Governor shall also be broadly
reflective of the state's population as to gender, ethnicity, and
geographic residence within California.
(3) At least seven of the members appointed by the Governor shall
be made from the private sector.
(4) At least two of the members appointed by the Governor shall be
from rural areas.
(d) The members appointed by the Speaker of the Assembly and the
Senate Committee on Rules shall both be from the private sector.
(e) Commencing January 1, 2011, appointments to the panel shall be
for four-year terms, except that the Governor's appointments, which
shall be made as follows:
(1) Two members shall be appointed on January 1, 2011, and every
four years thereafter.
(2) Two members shall be appointed on January 1, 2012, for a
two-year term. It is not the intent of the Legislature to disturb the
appointment of the members of the panel, as it existed prior to the
enactment of the act that added this section, whose terms are still
ongoing.
(f) Vacancies shall be filled in the same manner as the original
appointments, pursuant to this section.
(g) The panel shall meet upon the call of the Secretary of Labor
and Workforce Development, who shall convene at least two panel
meetings during each year. A quorum shall not be required to meet,
except at the meeting at which the California Economic and Workforce
Development Strategy is approved by a majority of those present.
(h) Panel members shall serve without compensation, but they may
be reimbursed for actual expenses incurred in connection with their
duties.
SEC. 4. Section 15572 is added to the
Government Code , to read:
15572. (a) As part of its deliberations in preparing the
California Economic and Workforce Development Strategy, the
California Economic Strategy Panel shall create an assessment
addressing all of the following considerations:
(1) The strengths and weaknesses of the state's economy within a
regional, national, and global context, and the state's prospects for
future economic prosperity, identifying industries and businesses in
each of the state's nine regional economies that are significant in
2011, and those that are likely to be significant in 2020.
(2) The current and emerging economic trends, areas in which the
state has a comparative advantage to other states and foreign
countries, and key opportunities for strategic alliances with other
states and foreign countries.
(3) The effectiveness of the state's economic and workforce
development programs in creating and retaining jobs, improving
productivity, increasing innovation, providing 21st century workforce
skills, and attracting industries providing employment within the
state's core and emerging industry clusters.
(4) The ways in which private resources, including, but not
limited to, investor networks, may be more effectively leveraged to
attract additional private investment within the state's communities
and small businesses.
(5) The adequacy of state and local physical, electronic, and
human infrastructure, including skills relating to digital
technology, to meet the state's current and future needs, and a
discussion of the appropriate role for state government to improve
inadequacies identified in the state's physical, electronic, and
human infrastructure.
(6) Government impediments to economic development.
(7) The role of innovation in keeping the state's regional
economies vibrant, including models and strategies that encourage
partnerships among public, academic, and private entities, located in
this state or other states, that support the state's core and
emerging industries.
(8) The unique opportunities and challenges in developing
businesses and attracting investment along the state's border areas
and in emerging domestic markets.
(9) A review of significant literature by the federal government,
state governments, foreign countries, and international associations
concerning competitive advantages.
(b) As part of its deliberations in preparing the strategy, as
well as other projects and activities of the panel, the panel shall
do all of the following:
(1) Consult with other state entities, including, but not limited
to, all of the following:
(A) The California Transportation Commission.
(B) The California Workforce Investment Board.
(C) The Small Business Council on Procurement.
(D) The Office of the Treasurer.
(E) The California Organized Investment Network.
(F) The Department of Insurance.
(G) The California Infrastructure and Economic Development Bank.
(H) The State Energy Resources Conservation and Development
Commission.
(2) Review relevant background, findings, and recommendations from
all of the following:
(A) The California Transportation Plan, required to be updated
pursuant to Chapter 2.3 (commencing with Section 65070) of Division 1
of Title 7, including those portions related to trade infrastructure
and the movement of goods.
(B) The international and foreign investment strategies of state
and local governments.
(C) The State Environmental Goals and Policy Report, prepared
pursuant to Article 5 (commencing with Section 65041) of Chapter 1.5
of Title 7.
(D) The five-year plan for funding infrastructure, prepared
pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of
Part 3 of Division 3 of Title 2.
(E) The state workforce strategy submitted as a condition of
receiving funding pursuant to the federal Workforce Investment Act of
1998 (29 U.S.C. Sec. 2938).
(F) The workforce strategies developed by the Employment Training
Panel and the California Community Colleges.
(c) The panel shall review the California Economic and Workforce
Development Strategy within five years after the date it is
finalized, and every five years thereafter, and make recommendations
on how to update the strategy as the panel deems appropriate. Nothing
in this subdivision shall prohibit the panel from reviewing or
making recommendations on how to update the plan more frequently.
SEC. 5. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to preserve the public peace, health, and safety through
the encouragement of economic development throughout the state's
economic regions, it is necessary that this act take effect
immediately. All matter omitted in this version of the bill
appears in the bill as amended in the Senate, September 4, 2009.
(JR11)