BILL ANALYSIS
AB 2734
Page 1
ASSEMBLY THIRD READING
AB 2734 (John A. Perez)
As Amended May 28, 2010
Majority vote
ECONOMIC DEVELOPMENT 6-0 APPROPRIATIONS 12-5
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|Ayes:|V. Manuel Perez, Logue, |Ayes:|Fuentes, Ammiano, |
| |Beal, | |Bradford, |
| |Bill Berryhill, Block, | |Charles Calderon, Coto, |
| |Salas | |Davis, |
| | | |Monning, Ruskin, Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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SUMMARY : Establishes the Office of Economic Development
(Office) 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. Specifically, this bill :
1)Specifies that the Office includes the existing California
Business Investment Services Program, and the existing Office
of the Small Business Advocate (OSBA). The Office is under
the control of a director, who is appointed by the Governor.
Among the Office's required duties are to:
a) Prepare a five-year strategic plan to guide the state's
activities and investments relative to economic and
workforce development, maintain an Internet website for
public dissemination of the plan and other specified
information;
b) Make recommendations to the Governor and Legislature on
new state policies, programs and actions, as well as
amendments to existing programs for the purpose of
advancing statewide economic goals, respond to emerging
AB 2734
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issues, and ensure that all state policies and programs
conform to the adopted state economic and business
development goals;
c) Assist the Department of Finance in preparing, as part
of the annual state budget, an integrated program of
priority actions to achieve statewide economic goals and
objectives;
d) Coordinate the development of policies and criterion to
ensure that federal grants administered or directly
expended by the state advance statewide economic goals and
objectives; and,
e) Market the business and investment opportunities
available in California by working in partnership with
local, regional, federal and other state public and private
institutions to encourage business development and
investment in the state.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, implementation of this bill will result in one-time
General Fund costs in excess of $750,000 to create the
California Business Investment Service Web site and ongoing
costs in the range of $500,000 per year to maintain and update
the website, to advertise the phone number, and staff the
phones.
COMMENTS : Since 2005, the Assembly Committee on Jobs, Economic
Development and the Economy (JEDE) has held more than a dozen
oversight hearings examining the effectiveness of the state's
economic and workforce development program network. Based on
the testimony and related research, JEDE sponsored over a dozen
bills in the ensuing four years to address the state's failure
to produce a current economic development strategy, the
insufficient linkages between existing programs, and lack of
focus and measurement toward California's global
competitiveness.
In February 2010, the Little Hoover Commission undertook its own
review of the state's economic and workforce development
programs. In its final report, Making up for Lost Ground:
Creating a Governor's Office of Economic Development , it
analyzed the status and effectiveness of current programs since
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the 2003 demise the Technology, Trade and Commerce Agency and
recommended the creation of a new governmental entity to fill
the void left by the dismantled agency.
The report called for a single agency that would promote greater
economic development, foster job creation, and deliver specific
services (i.e. permitting, tax, regulatory, and other
information) directly to the California business community.
AB 2734 creates the Office of Economic Development within the
Governor's Office, and establishes specific tasks and duties for
the office, including developing a statewide strategic economic
plan and reorganizing such entities as the Small Business
Advocate and CalBIS into this new office. Ultimately, this new
office will establish long-term economic goals and strategies as
well as specific and effective services to California's
businesses both large and small.
The policy committee analysis includes an extended discussion on
this measure.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0004626