BILL NUMBER: AB 1233	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2012
	AMENDED IN ASSEMBLY  AUGUST 15, 2011

INTRODUCED BY   Assembly Member V. Manuel Pérez

                        FEBRUARY 18, 2011

   An act to add  Sections 15570 and 15572 to  
Article 6 (commencing with Section 12098.8) to Chapter 1.6 of
Division 3 of Title 2 of  the Government Code, relating to state
government, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1233, as amended, V. Manuel Pérez. State government: economic
development. 
   Existing law establishes the Governor's Office of Business and
Economic Development, within the Governor's office, to be
administered by a director appointed by the Governor. The office
serves the Governor as the lead entity for economic strategy and the
marketing of California on issues relating to business development,
private sector investment, and economic growth. The office exercises
powers related to economic development, including, among others,
making recommendations to the Governor and the Legislature regarding
policies, programs, and actions to advance statewide economic goals.
 
   This bill would require the director, in consultation with the
Secretary of Labor and Workforce Development, to prepare a California
Economic and Workforce Development Strategy, as specified, to be
updated every 5 years. The bill would require the strategy to make
recommendations regarding an economic and workforce development
blueprint for the state covering a 5-year time period. The bill would
require the director to consult with certain agencies in preparing
the blueprint, and would require the blueprint to address certain
topics.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   (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.  
   This bill would require the secretary to prepare a California
Economic and Workforce Development Strategy, as specified, to be
updated every 5 years. The bill would require the secretary to
undertake this process anew in each succeeding 5-year cycle in order
to update the economic strategy prior to October 31 of each
succeeding 5th year.  
   This 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 to lead the
preparation of the strategy, and authorize the secretary to call on
the assistance of 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, 2013. 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.  
   (2) This bill would require the Secretary of Labor and Workforce
Development to create an assessment addressing specified
considerations. The bill would also require the secretary 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.    Article 6 (commencing with Section
12098.8) is added to Chapter 1.6 of Division 3 of Title 2 of the
  Government Code  , to read:  

      Article 6.  State Economic and Workforce Development Strategy


   12098.8.  (a) The director, in consultation with the Secretary of
Labor and Workforce Development, shall prepare the California
Economic and Workforce Development Strategy. In fulfilling this
requirement, the director and the secretary shall be assisted by 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
and workforce development blueprint for the state covering a
five-year time period, and shall contain all of the following:
   (1) A statement of economic goals and objectives for the state.
   (2) A prioritized list of significant issues facing the economy of
the state and how these issues and trends could be impediments to
achieving the goals, objectives, and recommendations in the
blueprint.
   (3) An evaluation of the effectiveness of the state's existing
economic 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) An evaluation of 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.
   (5) A list of key industries in which the state shall focus its
economic development efforts, including industries where the state
has a current dominant position, and industries where the state has
an emerging presence within the United States and global economies.
This list shall be based on current local and regional priorities of
the state's nine economic regions.
   (6) Recommendations for legislation, regulations, and
administrative reforms that are necessary to improve the business
climate and economy of the state and meet the state's economic goals
and objectives. The recommendations shall address how all state
entities have economic and workforce development-related
responsibilities or authorities that impact economic and workforce
activities in the state can foster greater economic property for all
areas of the state, including historically underserved areas, such as
those along the state's borders, rural areas, and within its inner
cities. The recommendations shall support regional economic
development efforts, small and microbusiness development, private
investment especially in emerging domestic markets, workforce
development among all worker skill levels, and California businesses
accessing global markets.
   (7) Measurable outcomes and timelines for implementing the goals,
objectives, and recommendations of the strategy.
   (8) An identification of key stakeholder partnerships to use in
implementing the recommendations.
   (9) An identification of options for funding the goals,
objectives, and recommendations.
   (c) The blueprint shall be based on existing and current
assessments completed by relevant state, federal, local, and regional
public and private organizations. As part of their deliberations in
preparing the strategy, the director and the secretary 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 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.
   (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 of the California Community Colleges.
   (G) The goods movement strategy developed by the Department of
Transportation.
   (d) (1) The director and the secretary shall prepare a preliminary
California Economic and Workforce Strategy, post that document on
the Cal-BIZ and the agency's Internet Web sites, 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, 2013.
   (2) Development of the preliminary strategy pursuant to this
subdivision shall be funded from nonstate funds and 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 of that 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 director and the secretary shall prepare
the final version of the strategy.
   (2) Upon the final strategy's completion, the director, the
secretary, the Secretary of Business, Transportation and Housing, and
the Secretary of Food and Agriculture shall post the preliminary and
final strategies on each of their agencies' Internet Web sites.
   (3) The director and the secretary 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.
   (g) In each succeeding five-year cycle, the director and the
secretary shall update the strategy, pursuant to the procedures set
forth in this section, on or before October 31 of each succeeding
fifth year. This subdivision shall not prohibit the secretary from
reviewing or making recommendations on how to update the strategy
more frequently. 
   SEC. 2.    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.  
  SECTION 1.    Section 15570 is added to the
Government Code, to read:
   15570.  (a) The secretary shall prepare the California Economic
and Workforce Development Strategy. In fulfilling this requirement,
the secretary shall be assisted by 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.
   (6) Strategies to foster job growth and economic development
covering all state agencies, offices, boards, and commissions that
have economic development responsibilities.
   (c) Based on assessments completed by relevant state, federal,
local, and regional public and private organizations, 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, 2013.
   (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.
   (2) Upon the final strategy's completion, the Secretary of Labor
and Workforce Development, the Secretary of Business, Transportation
and Housing, and the Secretary of Food and Agriculture shall post the
preliminary and final strategies on each of their agencies' Internet
Web sites.
   (3) The 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.
   (g) In each succeeding five-year cycle, the secretary shall update
the strategy, pursuant to the procedures set forth in this section,
on or before October 31 of each succeeding fifth year. 

  SEC. 2.    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 Secretary
of Labor and Workforce Development 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, the
secretary 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 secretary 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 secretary deems appropriate.
Nothing in this subdivision shall prohibit the secretary from
reviewing or making recommendations on how to update the strategy
more frequently.  
  SEC. 3.    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.