BILL ANALYSIS �
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|Hearing Date:June 18, 2012 |Bill No:AB |
| |1460 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: AB 1460Author:Huber
As Introduced: January 9, 2012 Fiscal: Yes
SUBJECT: State government: California Commission on Industrial
Innovation.
SUMMARY: Repeals the implementing codes for the California Commission
on Industrial Innovation (Commission) and deletes one cross reference
to the Commission in a separate code.
Existing law:
1)Establishes the Commission within the Office of the Governor for
purposes of encouraging industrial innovation and developing
policies that maintain California's leadership in the national
economy. (Chapter 1.5, of Part 2, of Division 3, of Title 2 of the
Government Code (GC) �� 12095-12095.53)
2)Provides that the Commission shall consist of 25 members, including
five from the public sector, six from labor, and ten from industries
characterized by industrial innovation.
(GC � 12095.10)
3)Specifies that, for purposes of defining the scope of the
Commission, industrial innovation refers to technology based
companies that devote at least 5% of sales to research and
development and at least 15% of sales to depreciable investments.
Companies captured within this definition include, but are not
limited to, those making electronic components, computers,
peripherals, instruments, communication equipment, robotics,
biotechnology, photovoltaic, and aerospace equipment. (GC �
12095.02)
AB 1460
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4)Requires the Commission to convene representatives of business,
labor, academia and government for purposes of assessing problems
inhibiting, and latent opportunities for, industrial innovation
throughout the state including: (GC � 12095.40)
a) Assessing and evaluating programs which improve productivity
while maintaining regard for worker involvement and satisfaction;
b) Identifying means by which industries and universities can
cooperate on research and development projects and in the
establishment and or expansion of cooperative research and
development institutes;
c) Identifying models for financing industrial innovation;
d) Identifying management techniques necessary for successful
industrial innovation;
e) Examining and evaluating the effectiveness of any state
programs assisting or hindering industrial innovation; and,
f) Identifying shortcomings in the transportation, sewer, water,
energy, and waste disposal systems which inhibit existing or
future industrially innovative firms.
1)Establishes the Governor's Office of Business and Economic
Development (Office), also known as "GO-Biz," to serve as the lead
entity for economic strategy and the marketing of California on
issues relating to business development, private sector investment,
and economic growth. (Chapter 1.6, of Part 2, of Division 3, of
Title 2 of the GC, �� 12096-12098.5)
2)Provides that the Office may recommend to the Governor and
Legislature policies and actions to advance statewide economic goals
and respond to emerging economic problems and opportunities;
coordinate efforts to ensure federal grants administered or directly
expended by the state advance statewide economic goals and
objectives; market the business and investment opportunities
available in California with both other states and internationally;
encourage collaboration among research institutions, startup
companies, local governments, venture capitalist and economic
development agencies to promote innovation; conduct research on how
the state can remain on the leading edge of innovation and emerging
sectors; and support small businesses by providing information about
accessing capital, complying with regulations, and supporting state
initiatives that support small business.
(GC � 12096.3)
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This bill:
1) Repeals provisions which established the California Commission on
Industrial Innovation.
2) Makes conforming changes.
FISCAL EFFECT: According to the Assembly Appropriations Committee
analysis dated April 25, 2012, costs are "negligible."
COMMENTS:
1.Purpose. According to the Author: "The California Commission on
Industrial Innovation was created by Executive Order in 1981
(B-91-81) and made permanent in statute in 1982. The Commission was
envisioned to recommend effective and aggressive strategies for
expanding the state's economy and employment rate. This Commission
no longer exists and its proposed activities are supported by other
divisions of government, including the Governor's Office of Economic
Development."
2.Background. The Commission, administered through Governor's Office
of Planning and Research, was established to encourage the
development of high technology industries, develop policies that
maintain California's leadership in the national economy and retain
the state's international competitive position.
The focus of the Industrial Commission was to be on technology based
companies such as those making or developing electronic components,
computers and peripherals, instruments, communications equipment,
robotics, biotechnology, photovoltaics, and aerospace equipment.
It is unclear if this Commission was convened and how often it may
have met or what reports, recommendations or other information may
have been generated by this Commission.
3. Related Legislation. AB 699 (Portantino and V. Manuel P�rez, of
2009) would have updated the requirements for the development of a
State Economic Development Strategy, especially in the areas of
technology and innovation, and requires it be submitted to the
Legislature by May 1, 2010. This bill was held in Assembly
Appropriations Committee.
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AB 2711 (Portantino, Arambula, Price and Salas, of 2008) would have
required the Secretary of the Business, Transportation and Housing
Agency to develop a comprehensive state technology and innovation
strategy to guide future state expenditures and activities. This
bill was held under submission in the Assembly Committee on
Appropriations.
AB 2860 (Lieu, of 2007) would have renamed the California Commission
on Industrial Innovation (Commission) the California Commission on
Manufacturing Competitiveness and Innovation, specified the
Commission should avoid recommendations that could diminish certain
worker protections, and made conforming changes to the enabling
statute.
This bill was held in the Senate Appropriations Committee.
SUPPORT AND OPPOSITION:
Support: None on file as of May 30, 2012.
Opposition: None on file as of May 30, 2012.
Consultant:Bill Gage