BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1558 (V Perez)
Hearing Date: 8/12/2010 Amended: 6/30/2010
Consultant: Bob Franzoia Policy Vote: B,P&ED 6-1
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BILL SUMMARY: AB 1558, an urgency measure, would do the
following:
- Revise 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 require that strategy to be updated every
five years rather than biennially.
- Require the Secretary of Labor and Workforce Development, with
the assistance of the California Economic Strategy Panel and the
California Workforce Investment Board, to prepare a preliminary
strategy by July 1, 2011.
- 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.
- Require the secretary to prepare the final version of the
strategy within two 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 every five
years thereafter.
- Establish the 20 member Economic Strategy 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.
- Require the panel to meet upon the call of the secretary, who
would be required to call at least two meetings of the panel per
year.
- Require members of the panel to serve without compensation,
but would authorize their reimbursement for actual expenses
incurred in connection with their duties.
- Require the panel, as part of its deliberations in preparing
the strategy, to create an assessment addressing specified
considerations.
- Require the panel to review the strategy within five years of
the date of its finalization, and every five years thereafter,
and to make recommendations on how to update the strategy.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
California Economic andUp to $100; minor costs in future
yearsPrivate
Workforce Development
Strategy
Economic Strategy Panel Minor, absorbable costs ongoing
Various
assessment
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Page 2
AB 1558 (V Perez)
Chapter 1153/1993 established the Economic Strategy Panel under
the Technology, Trade and Commerce Agency. Chapter 627/2003
moved the responsibility for the Economic Strategy Panel to the
Labor and Workforce Development Agency. In addition, Chapter
627 required the Economic Strategy Panel to develop a standard
definition of economic development and to develop 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.
This bill specifies that development of the preliminary
California Economic and Workforce Development strategy shall be
funded from private donations. Staff recommends the bill be
amended to require the Department of Finance determine that
private funds sufficient to fund the cost of the preliminary
strategy have been deposited with the state and to notify the
secretary when development may occur.
The author's proposed amendments are as follows:
Amendment 1
Page 4, line 23, insert "and final" after the word "preliminary"
Amendment 2
Page 5, insert after line 7,
(h) The California Economic Strategy Panel Account is herby
created within the Labor and Workforce Fund. All private moneys
received for the purpose of developing the preliminary and final
strategy shall be deposited in the account. Commencement on the
development of the preliminary strategy shall not commence until
the Department of Finance determines that there is sufficient
money in the account to complete the preliminary and final
strategy and notifies the secretary of this determination.
Moneys in the fund shall only be expended for those costs
directly associated with the development of the preliminary and
final strategy.