BILL NUMBER: AB 1233 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member V. Manuel Pérez
FEBRUARY 18, 2011
An act to amend Section 15570 of, and to add Sections 15571 and
15572 to, the Government Code, relating to state government, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1233, as introduced, V. Manuel Pérez. State government:
economic development.
(1) Existing law establishes the Labor and Workforce Development
Agency in state government, and provides that the Secretary of Labor
and Workforce Development, the executive officer of the agency, is
directly responsible to the Governor for the operations of each
department, office, and unit within the agency. Existing law requires
the secretary to lead the preparation of a biennial California
Economic Development Strategic Plan, as specified, and to convene a
biennial economic strategy panel, its membership to be composed as
specified, to provide recommendations regarding the plan. Existing
law requires the secretary to undertake this process anew in each
succeeding 2-year cycle in order to update the economic strategy
prior to October 31 of each succeeding 2nd year.
This bill would revise and recast these 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 instead require that strategy to be
updated every 5 years rather than biennially. The bill would
authorize the strategy to meet all or a portion of other state-level
strategies, require the strategy to make recommendations regarding an
economic development plan for the state covering a 5-year period,
and require the strategy to contain specified items. The bill would
require the Secretary of Labor and Workforce Development to lead the
preparation of the strategy, and authorize the secretary to call on
the assistance of the California Economic Strategy Panel and the
California Workforce Investment Board in fulfilling this duty. The
bill would also require the secretary to prepare a preliminary
strategy, to post that document on the agency's Internet Web site,
and to submit written notice of that document's posting to the
relevant policy and fiscal committees of each house of the
Legislature by July 1, 2012. This bill would also 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, as specified. The bill would
require the secretary to prepare the final version of the strategy
within 2 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 on or before October 31 of each
succeeding 5th year.
(2) Existing law provides for the composition of the California
Economic Strategy Panel, as specified.
This bill would establish the 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. The bill would
require the secretary to be the chairperson of the panel, and would
provide for the membership of the panel, as specified. The bill would
require the panel to meet upon the call of the secretary, who would
be required to call at least 2 meetings of the panel per year. The
bill would require members of the panel to serve without
compensation, but would authorize their reimbursement for actual
expenses incurred in connection with their duties.
This bill would require the panel, as part of its deliberations in
preparing the strategy, to create an assessment addressing specified
considerations. The bill would also require the panel to review the
strategy within 5 years of the date of its finalization, and every 5
years thereafter, and to make recommendations on how to update the
strategy.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15570 of the Government Code is amended to
read:
15570. (a) The secretary shall lead the preparation of a
biennial the California Economic
Development Strategic Plan and Workforce Development
Strategy . In fulfilling this duty, the secretary shall
do the following: call on the assistance of
the California Economic Strategy Panel, established
pursuant to Section 16671, and the California Workforce Investment
Board, established pursuant to Article 1 (commencing with Section
14010) of Chapter 3 of Division 7 of the Unemployment Insurance Code.
The California Economic and Workforce Development Strategy may serve
to meet all or a portion of other state-level strategies, including,
but not limited to, the state plan required by the federal Workforce
Investment Act (Public Law 105-220).
(b) The strategy shall make recommendations regarding an economic
development strategic plan for the state covering a five-year time
period, and shall contain all of the following:
(1) A statement of economic goals for the state.
(2) A prioritized list of significant issues facing the economy of
the state.
(3) Proposals for legislation, regulations, and administrative
reforms necessary to improve the business climate and economy of the
state.
(4) An evaluation of the effectiveness of the state's economic
development programs.
(5) A list of key industries in which the state shall focus its
economic development efforts.
(1)
(6) Review the recommendations made by the
California Economic Strategy Panel in their biennial economic
development strategic plan document. This document shall make
recommendations regarding an economic development strategic plan for
the state, covering a two-year time period and containing a statement
of economic goals for the state, a prioritized list identifying
significant issues learned from economic development strategic plan
panel meetings, proposals for legislation, regulations, and
administrative reforms necessary to improve the business climate and
economy of the state, evaluation of the effectiveness of the state's
economic development programs, a list of key industries in which the
state shall focus its economic development efforts, and strategies
Strategies to foster job growth and economic
development covering all state agencies, offices, boards, and
commissions that have economic development responsibilities.
(2) Convene a biennial economic strategy panel to provide
recommendations regarding a California economic development strategic
plan. This panel shall conduct meetings in Sacramento, all cities of
the state with populations over 500,000, and in major cities of
other regions of California as designated by the secretary. The
secretary shall invite businesses, labor unions, organizations
representing the interests of diverse ethnic and gender groups, local
government leaders, academic economists and business professors,
chambers of commerce and other business organizations, government
agencies, and key industries to contribute to the preparation of the
recommended economic strategy. These meetings shall address at least
the following matters of concern:
(A) Strengths and weaknesses of the California economy and the
state's prospects for future economic prosperity.
(B) Emerging and declining industries in California and elsewhere.
(C) Effectiveness of California's economic development programs in
creating and retaining jobs and attracting industries.
(D) Adequacy of state and local physical and economic
infrastructure.
(E) Government impediments to economic development.
(F) The development of 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. In developing a
system of accountability, the panel shall, by using only existing
resources and without future budget augmentation made for this
purpose, do all of the following:
(i) Develop a standard definition of economic development.
(ii) Develop, for use in state law, standard measurements of real
per capita income, job growth, new business creation, private sector
investment, minority entrepreneurship, and income inequality.
(iii) Survey and evaluate efforts in other states to develop
accountability measures for public investments in economic
development.
(iv) Determine whether a return on investment calculation is
feasible for public investments in economic development.
(v) Conduct a comparative study of various methodologies for
preparing the economic development sections of a state budget,
including unified functional budget, zero-based budget, and
performance-based budget methodologies.
(vi) Study the feasibility of statutory disclosure requirements on
specified publicly funded subsidies to private sector businesses.
(vii) Submit a report of its findings and recommendations
regarding this subparagraph to the Legislature no later than one year
after its first meeting after January 1, 2005.
(b) The panel shall be composed of the following 15 members:
(c) Based on the assessment completed by the California Economic
Strategy Panel pursuant to Section 15571, the strategy shall also
include, at a minimum, all of the following components:
(1) Policy goals, objectives, and recommendations necessary to
implement a comprehensive economic and workforce development
strategic plan for the state, identifying the priority for each
within the overall strategy.
(2) Measurable outcomes and timelines for implementing the goals,
objectives, and recommendations of the strategy, showing the way in
which key policy development and implementation efforts are
coordinated with emerging issues.
(3) An identification of impediments to achieving the goals,
objectives, and recommendations described in paragraph (1) and the
way in which they will delay the state's ability to improve its
competitive position.
(4) An identification of key stakeholder partnerships to use in
implementing the recommendations.
(5) An identification of options for funding the goals,
objectives, and recommendations described in paragraph (1).
(6) An identification of an organizational structure for the
implementation of the policies, programs, and services recommended in
the strategy.
(d) (1) The secretary shall prepare a preliminary California
Economic and Workforce Strategy, post that document on the agency's
Internet Web site, and submit written notice of that document's
posting to the relevant policy and fiscal committees of each house of
the Legislature by July 1, 2012.
(2) Development of the preliminary strategy pursuant to this
subdivision shall be funded from private donations.
(e) The relevant policy and fiscal committees of each house of the
Legislature shall review the preliminary strategy and hold hearings
regarding the preliminary strategy within 90 days of the date that
notice oft hat document's posting is sent to the relevant policy and
fiscal committees of each house of the Legislature.
(f) (1) Within two months of the final hearing held by a policy or
fiscal committee of either house of the Legislature regarding the
preliminary strategy, the secretary shall prepare the final version
of the strategy.
(1)
(2) The Upon the final strategy'
s completion, the Secretary of Labor and Workforce Development,
who shall serve as chair of the panel
California Economic Strategy Panel, the Secretary of Business,
Transportation and Housing, and the Secret ary of Food and
Agriculture shall post the preliminary and final strategies on each
of their agencies' Internet Web sites .
(2) Eight persons appointed by the Governor.
(3) The Speaker of the Assembly or his or her designee.
(4) The President pro Tempore of the Senate or his or her
designee.
(5) The Minority Leader of the Assembly or his or her designee.
(6) The Minority Leader of the Senate or his or her designee.
(7) One person appointed by the Speaker of the Assembly.
(8) One person appointed by the Senate Committee on Rules.
(c) The panel shall be representative of state government,
business, labor, finance, and academic institutions, and shall be
broadly reflective of the state's population as to gender, ethnicity,
and geographic residence within California.
At least one-half of all the persons on the panel shall be from
the private sector and at least two appointments shall be from
private businesses with less than 50 employees. At least two
appointments shall be from rural areas of the state. Beginning
January 1, 2004, appointments to the panel shall be for four-year
terms, except that the Governor's appointments made pursuant to
paragraph (2) of subdivision (b) shall be made as follows:
(1) Four members shall be appointed on January 1, 2004, and every
four years thereafter.
(2) Four members shall be appointed on January 1, 2004, for a
two-year term.
(3) Upon the expiration of the initial appointments made pursuant
to paragraph (2), four members shall be appointed on January 1, 2006,
and every four years thereafter.
(d)
(3) The secretary shall deliver copies of the
economic strategy panel's recommended California economic development
strategic plan to every constitutional officer, legislator, member
of the Governor's cabinet, members of the economic development
strategic plan panel, and Secretary of Labor and
Workforce Development shall submit written notice of the completion
of the final strategy and its posting to the agency Internet Web
sites specified in paragraph (2) to the relevant policy and fiscal
committees of the Legislature as well as every state agency,
office, board, and commission having economic and workforce
development responsibilities.
(e)
(g) In each succeeding two-year
five-year cycle, the secretary shall undertake this
process anew, so as to update the economic strategy
update the strategy, pursuant to the procedures set forth in this
section, on or before October 31 of each succeeding
second fifth year.
SEC. 2. Section 15571 is added to the Government Code, to read:
15571. (a) The California Economic Strategy Panel within the
office of the Secretary of Labor and Workforce Development shall
research, facilitate outreach, and make policy and fiscal
recommendations to the Governor and the Legislature on issues related
to economic and workforce development.
(b) The panel shall include all of the following members:
(1) The Secretary of Labor and Workforce Development, who shall
serve as the chairperson of the panel.
(2) The Director of the Governor's Office of Economic Development.
(3) The Secretary of Business, Transportation and Housing.
(4) The Secretary of Food and Agriculture.
(5) Eight persons appointed by the Governor, as specified in
paragraph (1) of subdivision (c).
(6) The Speaker of the Assembly or his or her designee.
(7) The President pro Tempore of the Senate or his or her
designee.
(8) The Minority Leader of the Assembly or his or her designee.
(9) The Minority Leader of the Senate or his or her designee.
(10) One person appointed by the Speaker of the Assembly.
(11) One person appointed by the Senate Committee on Rules.
(12) The California Small Business Advocate.
(13) The Executive Director of the California Council on Science
and Technology.
(c) (1) Of the eight members appointed by the Governor, each shall
represent one of the following categories:
(A) Local government.
(B) Small businesses.
(C) Manufacturing.
(D) Workforce development.
(E) Economic development.
(F) Labor.
(G) Finance.
(H) Academic institutions.
(2) The members appointed by the Governor shall also be broadly
reflective of the state's population as to gender, ethnicity, and
geographic residence within California.
(3) At least seven of the members appointed by the Governor shall
be from the private sector.
(4) At least two of the members appointed by the Governor shall be
from rural areas.
(d) The members appointed by the Speaker of the Assembly and the
Senate Committee on Rules shall both be from the private sector.
(e) Commencing January 1, 2012, appointments to the panel shall be
for four-year terms, except for the Governor's appointments, which
shall be made as follows:
(1) Two members shall be appointed on January 1, 2012, and every
four years thereafter.
(2) Two members shall be appointed on January 1, 2013, for a
two-year term. It is not the intent of the Legislature to disturb the
appointment of the members of the panel, as it existed prior to the
enactment of the act that added this section, whose terms are still
ongoing.
(f) Vacancies shall be filled in the same manner as the original
appointments, pursuant to this section.
(g) The panel shall meet upon the call of the Secretary of Labor
and Workforce Development, who shall convene at least two panel
meetings during each year. A quorum shall not be required to meet,
except at the meeting at which the California Economic and Workforce
Development Strategy is approved by a majority of those present.
(h) Panel members shall serve without compensation, but
they may be reimbursed for actual expenses incurred in
connection with their duties.
SEC. 3. Section 15572 is added to the Government Code, to read:
15572. (a) As part of its deliberations in preparing the
California Economic and Workforce Development Strategy, the
California Economic Strategy Panel shall create an assessment
addressing all of the following considerations:
(1) The strengths and weaknesses of the state's economy within a
regional, national, and global context, and the state's prospects for
future economic prosperity, identifying industries and businesses in
each of the state's nine regional economies that are significant in
2012, and those that are likely to be significant in 2021.
(2) The current and emerging economic trends, areas in which the
state has a comparative advantage to other states and foreign
countries, and key opportunities for strategic alliances with other
states and foreign countries.
(3) The effectiveness of the state's economic and workforce
development programs in creating and retaining jobs, improving
productivity, increasing innovation, providing 21st century workforce
skills, and attracting industries providing employment within the
state's core and emerging industry clusters.
(4) The ways in which private resources, including, but not
limited to, investor networks, may be more effectively leveraged to
attract additional private investment within the state's communities
and small businesses.
(5) The adequacy of state and local physical, electronic, and
human infrastructure, including skills relating to digital
technology, to meet the state's current and future needs, and a
discussion of the appropriate role for state government to improve
inadequacies identified in the state's physical, electronic, and
human infrastructure.
(6) Government impediments to economic development.
(7) The role of innovation in keeping the state's regional
economies vibrant, including models and strategies that encourage
partnerships among public, academic, and private entities, located in
this state or other states, that support the state's core and
emerging industries.
(8) The unique opportunities and challenges in developing
businesses and attracting investment along the state's border areas
and in emerging domestic markets.
(9) A review of significant literature by the federal government,
state governments, foreign countries, and international associations
concerning competitive advantages.
(b) As part of its deliberations in preparing the strategy, as
well as other projects and activities of the panel, the panel shall
do all of the following:
(1) Consult with other state entities, including, but not limited
to, all of the following:
(A) The California Transportation Commission.
(B) The California Workforce Investment Board.
(C) The Small Business Council on Procurement.
(D) The office of the Treasurer.
(E) The California Organized Investment Network.
(F) The Department of Insurance.
(G) The California Infrastructure and Economic Development Bank.
(H) The State Energy Resources Conservation and Development
Commission.
(2) Review relevant background, findings, and recommendations of
all of the following:
(A) The California Transportation Plan, required to be updated
pursuant to Chapter 2.3 (commencing with Section 65070) of Division 1
of Title 7, including those portions related to trade infrastructure
and the movement of goods.
(B) The international and foreign investment strategies of state
and local governments.
(C) The State Environmental Goals and Policy Report, prepared
pursuant to Article 5 (commencing with Section 65041) of Chapter 1.5
of Title 7.
(D) The five-year plan for funding infrastructure, prepared
pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of
Part 3 of Division 3 of Title 2.
(E) The state workforce strategy submitted as a condition of
receiving funding pursuant to the federal Workforce Investment Act of
1998 (29 U.S.C. Sec. 2938).
(F) The workforce strategies developed by the Employment Training
Panel and the California Community Colleges.
(c) The panel shall review the California Economic and Workforce
Development Strategy within five years after the date it is
finalized, and every five years thereafter, and make recommendations
on how to update the strategy as the panel deems appropriate. Nothing
in this subdivision shall prohibit the panel from reviewing or
making recommendations on how to update the strategy more frequently.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to preserve the public peace, health, and safety through
the encouragement of economic development throughout the state's
economic regions, it is necessary that this act take effect
immediately.