BILL NUMBER: AB 2437 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member V. Manuel Perez
FEBRUARY 19, 2010
An act to add Section 71098 to the Education Code,
relating to community colleges, and making an appropriation therefor.
An act to add Article 6 (commencing with Section
91600) to Chapter 1 of Title 10 of the Government Code,
relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2437, as amended, V. Manuel Perez. Community colleges:
green technology training: workforce development strategy.
State government: economic development.
The California Industrial Development Financing Act authorizes
cities, counties, cities and counties, and redevelopment agencies to
establish industrial development authorities that are authorized to
issue industrial development bonds, the proceeds of which may be used
to fund capital projects of private enterprise under terms and
conditions specified in the act. That act establishes the California
Industrial Development Financing Advisory Commission and grants it
various powers relating to industrial development bonds.
This bill, the California Manufacturing Competitiveness Act of
2010, would require the commission to establish the California
Manufacturing Competitiveness Loan and Loan Guarantee Program for the
purpose of attracting, retaining, and expanding manufacturing
facilities with more than 200 employees, and guidelines for the
implementation of the program. The bill would require the commission
to provide for the development and implementation of the program
application and evaluation process, and would require that applicants
to the program demonstrate that they meet specified requirements.
The bill would also create the Manufacturing Program Account
within the Industrial Development Fund. The bill would allow moneys
in the account to be paid to a lending institution or financial
company that will act as trustee of the funds, with the approval of
the Department of Finance. The fund would also be required to pay for
specified direct loans and defaulted loan guarantees.
The bill would require the commission, beginning October 1, 2012,
and annually thereafter, to post on its Internet Web site and provide
the Legislature with a report on the program's activities and impact
on the manufacturing industry, and on the state's economy generally.
The bill would provide that its provisions only remain in effect
until January 1, 2016, and as of that date are repealed.
(1) Existing law establishes the California Community Colleges
under the administration of the Board of Governors of the California
Community Colleges. Existing law requires the board of governors to
appoint a chief executive officer, known as the Chancellor of the
California Community Colleges.
Existing law establishes, until January 1, 2013, the California
Community Colleges Economic and Workforce Development Program.
Existing law requires the Board of Governors of the California
Community Colleges, as part of the program, to assist economic and
workforce regional development centers and consortia, including
middle and junior high schools or high schools and regional
occupational centers and programs, to improve linkages and
career-technical education pathways between high schools and
community colleges for the benefit of pupils and students in both
education systems and requires this assistance to include, among
other things, expansion of certificate programs in identified
economic development program strategic priority areas.
This bill would require the Economic Development and Workforce
Preparation Division of the office of the chancellor, in cooperation
with the Workforce Investment Board, the California Employment
Training Panel, the California Economic Strategy Panel, and other
organizations, to prepare a strategy for the purpose of determining
how to expend federal economic stimulus moneys targeted for workforce
development. The bill would require the strategy to include an
assessment of workforce training needs and would require the strategy
to identify workforce development partners and resources. The bill
would require the chancellor to submit that strategy to the
Legislature.
(2) Existing law requires the State Energy Resources Conservation
and Development Commission (Energy Commission) to develop, implement,
and administer a program, titled the Public Interest Energy
Research, Development, and Demonstration Program, to include a full
range of research, development, and demonstration activities that are
not adequately provided for by competitive and regulated energy
markets. Existing law establishes the Public Interest Research,
Development, and Demonstration Fund in the State Treasury, and
provides that the money collected from electrical corporations to
support cost-effective energy efficiency and conservation activities,
and public interest research and development not adequately provided
by competitive and regulated markets, be deposited in the fund for
use by the Energy Commission for implementation and administration of
the program.
This bill would appropriate $15,000,000 from the fund to the
California Community Colleges for the purpose of providing green
technology training through career technical and vocational programs.
The bill would authorize the Energy Commission to allocate to the
California Community Colleges up to $15,000,000 from specified
economic recovery funds received from the federal government in lieu
of the appropriation from the fund. The bill would require that an
amount equal to that allocation revert back to the fund if the Energy
Commission makes that allocation.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 6 (commencing with Section
91600) is added to Chapter 1 of Title 10 of the Government
Code , to read:
Article 6. California Manufacturing Competitiveness Act of
2010
91600. This act may be cited as the California Manufacturing
Competitiveness Act of 2010.
91601. (a) The Legislature finds and declares all of the
following:
(1) California is one of the largest and most diverse economies in
the world, with a state gross domestic product (GDP) of over $1.8
trillion in 2008. Based on figures from the International Monetary
Fund, if California were an independent nation it would rank as the
eighth largest economy in the world.
(2) Historically, the state's significance in the global
marketplace resulted from a variety of factors, including: its
strategic west coast location that provides direct access to the
growing markets in Asia; its economically diverse regional economies;
its large, ethnically diverse population, representing both a ready
workforce and significant consumer base; its access to a wide variety
of venture and other private capital; its broad base of small- and
medium-sized businesses that support the global manufacturing supply
chain; and its culture of innovation and entrepreneurship,
particularly in the area of high technology.
(3) Historically, economic growth in California has outpaced the
economic growth rate of the nation as a whole, and the state has led
the nation in export-related jobs, business start-ups, and
innovation. However, since the subprime home mortgage crisis in 2007,
California communities have struggled. With the increasing rates of
home foreclosure and the tightening of the credit markets, many
businesses have found their existing lines of credit unaccessible.
Significant drops in consumer spending have led to workforce
reductions and business bankruptcies.
(4) For much of 2009, the number of unemployed workers rose by
40,000 to 60,000 per month, and the year ended with 2.25 million
unemployed California workers. While California may have emerged from
the recession in the final quarter of 2009, unemployment is expected
to remain high throughout 2010 and 2011. Without specific
intervention to support job creation and business expansion, many
regions of California will be very slow to recover.
(5) Further, as California moves forward from this recession, it
is important that the state support the recovery of industries that
provide quality jobs, including manufacturing industries. A robust
manufacturing sector offers many benefits to the state, including
high-wage jobs, a basis for international trade, and one of the
highest multiplier effects on other industries and businesses. It has
been estimated that for every job created in manufacturing, two and
a half jobs are supported in other industry sectors. For instance, in
the electronic computer manufacturing industry, the multiplier
effect is 16 to one.
(6) Manufacturing employers and other large employers in
California, however, face many challenges in maintaining global and
domestic competitiveness, including maintaining a skilled workforce
and cost-effective productivity in the face of lower safety and wage
standards in emerging foreign markets.
(b) It is therefore the intent of the Legislature to strengthen
the manufacturing capacity of California through the implementation
of the California Manufacturing Competitiveness Act of 2010. The act
will provide the framework and focus to retool and expand California'
s manufacturing facilities, support a vibrant logistics network, and
retain and create more quality jobs.
91602. Unless the context requires otherwise, for the purposes of
this article, the following terms shall have the following meanings:
(a) "Administration expenses" means the reasonable and necessary
expenses incurred by a commission in the administration of this
title, including, without limitation, the fees and costs of paying
agents, trustees, attorneys, consultants, and others.
(b) "Commission" means the California Industrial Development
Financing Advisory Commission established pursuant to Article 3
(commencing with Section 91550).
(c) "Company" means a person, partnership, corporation, whether
for profit or not, limited liability company, trust, or other private
enterprise of whatever legal form, for which a project is undertaken
or proposed to be undertaken pursuant to this title or which is in
possession of property owned by an authority, and may include more
than a single enterprise.
(d) "Cost" as applied to any project, may include all of the
following:
(1) The cost of construction, improvement, repair, rehabilitation,
and reconstruction.
(2) The cost of acquisition, including rights in land and other
property, both real and personal and improved and unimproved, and
franchises, and disposal rights.
(3) The cost of demolishing, removing, or relocating any building
or structures on lands so acquired, including the cost of acquiring
any lands to which the buildings or structures may be moved or
relocated.
(4) The cost of machinery, equipment and furnishings, of
engineering and architectural surveys, plans, and specifications, and
of transportation and storage until the facility is operational.
(5) The cost of agents or consultants, including, without
limitation, legal, financial, engineering, accounting, and auditing,
necessary or incident to a project and of the determination as to the
feasibility or practicability of undertaking the project.
(6) The cost of acquiring or refinancing existing obligations
incident to the undertaking and carrying out, including the
financing, of a project, and the reimbursement to any governmental
entity or agency, or any company, of expenditures made by or on
behalf of the entity, agency, or company that are costs of the
project hereunder, without regard to whether or not the expenditures
may have been made before or after the adoption of a resolution of
intention with respect to that project by an authority.
(7) The cost of making relocation assistance payments as provided
by Chapter 16 (commencing with Section 7260) of Division 7 of Title
1.
(e) "Governing body" means the board of supervisors, city council,
or board of directors of a redevelopment agency, as the case may be.
(f) "Indenture" means any mortgage, deed of trust, trust
indenture, security agreement, or other instrument relating to
establishing a lien or security interest in, or on, property, any
pledge or other instrument relating to the possession of property,
and any assignment or other instrument relating to establishing any
right, title, or interest in, or related to, property, including the
revenues therefrom, given by an authority to a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the state, or bondholder or agent, for the
security of its bonds and the benefit of the bondholders.
(g) "Manufacturing Program Account" means the account established
within the Industrial Development Fund for moneys which are available
for direct loans and loan guarantees. Moneys in this account are not
subject to Section 91554.
(h) "Project" means the acquisition, construction, improvement,
repair, rehabilitation, and reconstruction of facilities and the
acquisition and rehabilitation of machinery, equipment, and
furnishings, and the acquisition of engineering and architectural
surveys, plans, and specifications, and all other necessary and
related capital expenditures by the issuance of bonds upon the
application of and to be repaid by payments from a company for the
purposes of this title.
(i) "Project agreements" means the agreements between an authority
and a company respecting a project, and may include, without
limitation, leases, subleases, options, and installments or the
contracts of purchase or sale, loan, or guaranty agreements, notes,
mortgages, deeds of trust, and security agreements.
(j) (1) "Property" means any land, air rights, water rights,
disposal rights, improvements, buildings or other structures, and any
personal property, tangible or intangible, and includes, but is not
limited to, machinery and equipment, whether or not in existence or
under construction, and interests in any of the foregoing, or
promissory notes or other obligations of any kind respecting such
interests.
(2) Property also means property suitable for one or more of the
activities or uses described below:
(A) Industrial uses including, without limitation, assembling,
fabricating, manufacturing, processing, or warehousing activities
with respect to any products of agriculture, forestry, mining, or
manufacture, if these activities have demonstrated job creation or
retention potential.
(B) Energy development, production, collection, or conversion from
one form of energy to another.
(C) Research and development activities relating to commerce or
industry, including, without limitation, professional,
administrative, and scientific office and laboratory activities or
uses.
(D) Processing or manufacturing recycled or reused products and
materials by manufacturing facilities.
(E) Business activities with the purpose of creating or producing
intangible property.
(F) Airport, dock, wharf, or mass commuting activities, or storage
or training activities related to any of those activities is
prohibited unless the property acquired is suitable for one or more
of the activities described in subdivisions (a) to (e), inclusive.
(G) Sewage or solid waste disposal activities or electric energy
or gas furnishing activities is prohibited unless the property
acquired is suitable for one or more of the activities described in
subdivisions (a) to (e), inclusive.
(H) Water furnishing activities is prohibited unless the property
acquired is suitable for one or more of the activities described in
subdivisions (a) to (e), inclusive.
(k) "Public agency" means any city, county, city and county, or
redevelopment agency.
(l) "Revenues" means all rents, purchase payments, and other
income derived from, or with respect to, the sale, lease, or other
voluntary or involuntary disposition of, or repayment of loans with
respect to, property, bond proceeds, and any receipts derived from
the deposit or investment of any income or proceeds in the account,
but does not include receipts designated to cover administration
expenses.
91603. (a) The commission shall establish the California
Manufacturing Competitiveness Loan and Loan Guarantee Program for the
purpose of attracting, retaining, and expanding manufacturing
facilities with more than 200 employees. The commission shall
establish guidelines for the implementation of this program
consistent with this article.
(b) In designing the California Manufacturing Competitiveness Loan
and Loan Guarantee Program, the commission shall develop a program
that meets all of the following objectives:
(1) Encourages the development of the state's long-term
manufacturing capacity.
(2) Creates jobs through the support of retooling and expansion of
manufacturing facilities.
(3) Prioritizes assistance to manufacturers who consistently pay
the highest wages based on the average weekly wage rate for their
industry subsector and pay health benefits.
(4) Allows manufacturers to access funds under terms and
conditions which would not otherwise be available in the private
market.
(5) Prioritizes assistance to applications that are jointly
submitted by management and the union at the facility or the union
pending representation of workers at the facility.
(6) Assists manufacturers to cost effectively respond to energy
efficiency regulations and new technologies.
(c) The commission shall provide for the development and
implementation of the application, review, and evaluation process for
the program, including, but not limited to, defining the eligibility
standards, rating and ranking criteria, and other appropriate
policies and procedures for implementing a direct loan and guarantee
programs subject to the following provisions:
(1) The maximum loan limit shall be five million dollars
($5,000,000). The maximum loan guarantee about shall be ten thousand
dollars ($10,000).
(2) All loan and loan guarantee applicants shall demonstrate that
they will have the ability to repay the loans.
(3) Loans may be provided at terms and conditions below market to
the extent that the overall program remains financially viable.
(4) Applicants must demonstrate they are in compliance with
applicable federal, state, and local laws and regulations, or that
the project for which they are requesting funding will bring them
into compliance.
(5) Loans must be paid in full six months prior to a relocation of
a facility outside of California. If the loan or loan guarantee
included a subsidized amount, that amount must also be repaid subject
to a sliding scale adopted by the commission.
(6) All applicants must agree to annually report to the commission
on total capital investments made by the company and total
employment, including wage levels by type of work, in the prior year
and the following two years. The applicant shall also estimate the
number of jobs created or retained through the provision of this
state assistance, as well as provide other appropriate performance
data, as determined by the commission.
(d) In addition to any other requirements in this article, all
applicants shall demonstrate that they meet all of the following
requirements:
(1) The facility or facilities where the moneys will be expended
or benefit are located in the state.
(2) The moneys being awarded will be used to create or retain jobs
in the State of California.
(3) Wages for employees in California are on average, equal to or
more than the average weekly wage rate for similar workers in the
same industry subsector.
(4) Provides health insurance benefits for all full-time
employees.
(5) The employer's turnover rate has not exceeded 20 percent
annually at any facility where moneys obtained through the program
will be used.
91604. (a) There is hereby created within the Industrial
Development Fund, an account called the Manufacturing Program
Account. Upon appropriation by the Legislature, all or a portion of
the funds in the account may be allocated by the commission, with the
approval of the Department of Finance, to a lending institution or
financial company that will act as trustee of the funds. The fund
shall be used to pay for direct loans and defaulted loan guarantees
issued pursuant to Article 6 (commencing with Section 91575.3),
administrative costs of the commission, and those costs necessary to
protect a real property interest in a defaulted loan or guarantee.
(b) All loan repayments, interest, and royalties shall be
deposited back into the Manufacturing Program Account.
(c) Moneys in the account shall not be subject to Section 91554.
91605. (a) Beginning October 1, 2012, and annually thereafter,
the commission shall post on its Internet Web site or provide the
Legislature with a report, whichever is more costeffective, on the
program's activities and impact on the manufacturing industry and on
the state's economy, in general.
(b) At a minimum, the information provided pursuant to subdivision
(a) shall include the following:
(1) the total amount of moneys in the Manufacturing Program
Account, at the beginning of the fiscal year and at the end of the
fiscal year.
(2) The number of projects funded and the number of manufacturers
assisted.
(3) The number of jobs created and the number of jobs retained
through program assistance in each of the fiscal years.
(4) The amount of investments made by the manufacturer in the
prior year to their assistance and next two years.
(5) The amount of federal, state, and local taxes paid by the
businesses in aggregate. Information on publicly held companies shall
also be reported separately.
91606. This article shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SECTION 1. Section 71098 is added to the
Education Code, to read:
71098. (a) The Legislature finds and declares all of the
following:
(1) The purpose of the California Community Colleges Economic and
Workforce Development Program is to advance the state's economic
growth and global competitiveness through education, training, and
services that contribute to workforce improvement, technology
deployment, and business development, consistent with the state's
regional economies. Under this program, the California Community
Colleges work with employers, advisory committees, and agency
partners to identify, on a region-by-region basis, workforce
education and training needs, including the needs of small
businesses.
(2) The Career Technical Education Unit of the Economic
Development and Workforce Preparation Division of the Office of the
Chancellor of the California Community Colleges focuses on program
coordination and advocacy, policy development, and coordination with
K-14 workforce preparation and career and technical education
systems. That unit is responsible for implementation of the federal
Carl D. Perkins Career and Technical Education Act of 2006 and the
Governor's Career Pathways Initiative, and for the development,
dissemination, and implementation of the California State Plan for
Vocational and Technical Education and the annual performance
reports.
(3) The Economic Development and Workforce Preparation Division of
the Office of the Chancellor of the California Community Colleges
has a variety of responsibilities related to workforce and economic
development, including the implementation of a comprehensive plan for
vocational and technical education and the delivery of
industry-focused technical assistance activities pursuant to the
California Community Colleges Economic and Workforce Development
Program.
(4) In 1996, economic development became a primary mission of the
California Community Colleges.
(b) The Economic Development and Workforce Preparation Division of
the Office of the Chancellor of the California Community Colleges
shall prepare a strategy for the purpose of determining how to expend
federal economic stimulus funds targeted for workforce development.
The strategy shall include all of the following information:
(1) An assessment of workforce training needs based on existing
job opportunities, the status of workforce skills in each of the
economic regions of the state, and regionally significant and
emerging industries, and shall include particular attention to jobs
in clean technology industries.
(2) An identification of key public and private community,
economic, and workforce development partners.
(3) An identification of existing state, regional, and local
public and private workforce development resources.
(4) An identification of statutory and regulatory changes that
should be made in order to best utilize federal economic stimulus
funds targeted for workforce development.
(5) An identification of new resources that should be made
available to accomplish the objectives of the workforce development
strategy.
(6) A description of key tasks, timelines, outcomes, and
monitoring processes for purposes of developing the workforce
development strategy.
(c) The strategy described in subdivision (b) shall build upon the
California State Plan for Vocational and Technical Education and
shall include priorities determined by the Workforce Investment
Board, the California Employment Training Panel, and the California
Economic Strategy Panel.
(d) The strategy described in subdivision (b) shall be developed
in cooperation with the Workforce Investment Board, the California
Employment Training Panel, the California Economic Strategy Panel,
and appropriate business and labor organizations.
(e) The Chancellor of the California Community Colleges shall
submit the strategy prepared pursuant to this section to the
appropriate policy and fiscal committees of the Legislature within
120 days of holding the first meeting to prepare the strategy.
SEC. 2. (a) The sum of fifteen million dollars
($15,000,000) is hereby appropriated from the Public Interest
Research, Development, and Demonstration Fund to the California
Community Colleges to be used for the purpose of providing green
technology training programs funded through the Economic Development
and Workforce Preparation Division and the Career Technical Division
of the Office of the Chancellor of the California Community Colleges.
(b) The Energy Commission may allocate to the California Community
Colleges, from the moneys received for energy-related projects and
training pursuant to the federal American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) or related federal acts, consistent
with applicable federal law, and in lieu of the moneys appropriated
pursuant to subdivision (a), an amount not exceeding fifteen million
dollars ($15,000,000) for the purposes of subdivision (a). If the
Energy Commission allocates money in lieu of the appropriation by
subdivision (a), the total amount of the moneys appropriated by
subdivision (a) shall be reduced by the amount so allocated and that
amount shall revert to the Public Interest Research, Development, and
Demonstration Fund.