BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2734 (J Perez)
Hearing Date: 8/2/2010 Amended: 5/28/2010
Consultant: Bob Franzoia Policy Vote: G O 8-0
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BILL SUMMARY: AB 2734 would create the Office of Economic
Development as the lead entity for economic strategy and
marketing of California. This bill would create the California
Business Investment Services Program (CalBIS) within the office
for the purpose of serving employers, corporate executives,
business owners, and site location consultants who are
considering California for business investment and expansion.
This bill would move the Office of Small Business Advocate to
the Office of Economic Development. This bill would revise the
conditions relating to the preparation and reporting of the
California Economic Development Strategic Plan.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Creation of Office of $1,250* $2,500 $2,500 General/
Economic Development Various
Special
* Based on 22 professional positions (and projected three
support staff) within the Governor's Office of Economic
Development. The proposed 2002-03 Technology, Trade and
Commerce Agency budget was approximately $20 million but
included programs not referenced in this bill. This agency was
abolished in the 2003-04 Budget Act although several of its
programs were transferred to other departments.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Executive Order S-05-10 created the Governor's Office of
Economic Development. Its purpose is to promote California as a
place to do business, to support those interested in starting,
growing, financing, expanding or relocating a business in
California, and to help, to the extent possible, those
businesses facing challenges to operating in California. The
Office of Economic Development shall exist within the Governor's
Office, be headed by a director designated by the Governor, and
shall be the state's lead entity for economic development
coordination with all public and private entities.
Also according to the Executive Order, the Office of Economic
Development shall be created with existing resources and shall
be staffed with personnel from agencies and departments whose
functions relate to economic development, including small
business promotion. These agencies shall include, but not be
limited to, the Labor and Workforce Development Agency, the
Business, Transportation and Housing Agency, the Environmental
Protection Agency, the Natural Resources Agency, the State and
Consumer Services Agency, the Department of Food and
Agriculture, the Office of the Chief Information Officer, and
the Office of Planning and Research. Each member of the Cabinet
shall identify a senior manager within his or her agency to
coordinate
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AB 2734 (J Perez)
business support activities with the Office of Economic
Development.
The office has one Executive Director, six deputies and two
project managers in the CalBIS program, three deputies and one
project manager in small business, two deputies in innovation
and entrepreneurship, two deputies and one manager in
international trade, one deputy and one analyst in policy and
research planning, one deputy in marketing and communications,
and one deputy in external affairs.
Staff notes the appropriate combination of programs and staffing
will likely vary and grow in future years. For example,
programs in the Technology, Trade and Commerce Agency included,
among others:
California Infrastructure and Economic Development Bank (21 PY).
Military Base Retention and Reuse (6 PY).
California Film Commission (19 PY).
Regional Offices for Economic Development (117 PY).
International Trade and Investment (148 PY).
Tourism (21 PY).
There were 65.8 total administrative positions and a total of
367 authorized positions with a total budget of approximately
$20,000,000 (2002-03).