BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1460|
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                                 THIRD READING


          Bill No:  AB 1460
          Author:   Huber (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 9-0, 6/18/12
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Strickland, Vargas, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-0, 5/3/12 (Consent) - See last page for 
            vote


           SUBJECT  :    California Commission on Industrial Innovation

           SOURCE  :     Author


           DIGEST  :    This bill repeals the implementing codes for the 
          California Commission on Industrial Innovation (Commission) 
          and deletes one cross reference to the Commission in a 
          separate code.  

           ANALYSIS  :    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.  

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          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.  

          3.Specifies that, for purposes of defining the scope of the 
            Commission, industrial innovation refers to technology 
            based companies that devote at least five percent 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.

          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:  

             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 

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               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.  

          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.

          This bill:

          1.Repeals provisions which established the California 
            Commission on Industrial Innovation.

          2.Makes conforming changes.

           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 

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          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.

           Comments
           
          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." 

           Related Legislation
           
          AB 699 (Portantino and V. Manuel P�rez, 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.  The bill was held in 
          Assembly Appropriations Committee.

          AB 2711 (Portantino, Arambula, Price and Salas, 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.  The bill 
          was held under submission in the Assembly Appropriations 
          Committee.

          AB 2860 (Lieu, 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 

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          statute.  The bill was held in the Senate Appropriations 
          Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No



           ASSEMBLY FLOOR  :  72-0, 5/3/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, 
            Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, 
            Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, 
            Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Silva, Skinner, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Yamada, John A. 
            P�rez
          NO VOTE RECORDED:  Bonilla, Fletcher, Furutani, Hall, Roger 
            Hern�ndez, Jones, Smyth, Williams


          JJA:n  7/3/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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