BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1259 (DeSaulnier)
Hearing Date: 5/27/2010 Amended: 5/24/2010
Consultant: Bob Franzoia Policy Vote: G O 8-0
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BILL SUMMARY: SB 1259 would create the Economic Development and
Job Creation Agency in state government. This bill would
provide for the appointment of the Secretary of Economic
Development and Job Creation who would serve as executive
officer. This bill would require the secretary to develop a
reorganization plan and to propose a structure for the agency.
This agency would be required to perform duties relating to
economic development and job creation.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Creation of new state $1,250 $2,500 $2,500 General/
agency Various
Special
* Based on 22 professional positions (and projected three
support staff) within the Governor's Office of Economic
Development. As a reference, 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: SUSPENSE FILE.
The Economic Development and Job Creation Agency would be
required to:
(1) Develop a statewide strategy that identifies the state's
goals and objectives for job creation and specify performance
measures to assess the state's progress towards attaining those
goals and objectives.
(2) Ensure that there is a cabinet-level official within the
Governor's administration responsible for presenting and
addressing economic development and job creation issues.
(3) Create a clearinghouse of accurate data on the state's
economic development activities and their effectiveness.
(4) Simplify, strengthen, and improve the operation and
management of economic development programs that provide
services to California's workers and employers.
(5) Eliminate duplicative duties, achieve cost efficiencies, and
promote accountability for the attainment of economic
development goals and objectives.
(6) Allow the state to marshal all of its resources to
systematically target new industries to site within the state.
(7) Build on our state's educational, workforce, and geographic
assets to seed innovation.
(8) Attract new and sustainable industries that will create
high-wage, middle-class jobs.
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SB 1259 (DeSaulnier)
(9) Provide a better understanding of federal and state laws
that protect workers.
Pursuant to Executive Order S-05-10, the Governor's Office of
Economic Development is hereby created. 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 business support activities with the Office of
Economic Development.
The office has one Executive Director, six deputies and two
project managers in California Business Investment Services
(CalBis), 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).
As amended on May 24, 2010, this bill would require the Governor
to appoint the secretary only upon determining that surplus
funds are available for general state government purposes.