BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2012
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

             AB 2012 (John A. Pérez) - As Introduced:  February 23, 2012 

          Policy Committee:                              JEDE Vote:6-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill transfers the authority for undertaking international 
          trade and foreign investment activities from the Business, 
          Transportation and Housing Agency (BT&H) to the Governor's 
          Office of Business and Economic Development (GO-Biz).  In 
          addition, the bill transfers the responsibility for establishing 
          an Internet-based permit assistance center from the Secretary of 
          the California Environmental Protection Agency (CalEPA) to 
          GO-Biz.

           FISCAL EFFECT  

          Negligible fiscal impact.

           COMMENTS  

           1)Purpose  :  According to the author, AB 2012 is a continuing 
            effort started in 2010, to create a single point of contact 
            for business in California.  The author notes while the 
            foundation for both the inclusion of foreign trade and 
            permitting was included in prior legislation that was signed 
            into law, the details had not been worked out.  The author 
            also states there is currently an agreement between GO-Biz and 
            CalEPA to allow GO-Biz to be able to maintain the permitting 
            system website, called "CALGOLD," and AB 2012 codifies that 
            agreement.  The author also notes this bill formally transfers 
            the responsibility for foreign trade to GO-Biz.
          
           2)Background  .  In April 2010, Governor Schwarzenegger issued 
            Executive Order S-05-10 to create the Governor's Office of 
            Economic Development (GOED).  The office offers assistance to 
            businesses including help with permit streamlining, starting a 








                                                                  AB 2012
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            businesses, relocation and expansion of businesses and 
            regulatory challenges.  Under the auspices of GOED, a number 
            of state programs and services are administered, including 
            programs related to international trade, permit assistance, 
            the Office of the Small Business Advocate, and innovation.  

           3)CalGOLD Program  :  In 1997, the state established CalGOLD to 
            aid businesses in complying with laws and regulations.  
            CalGOLD provides other online resources that business can use 
            to identify permit requirements.  CalGOLD has been operated by 
            CalEPA, the site and its related permit assistance activities 
            are being undertaken by GO-Biz through a memorandum of 
            understanding.
           
          4)Previous legislation  .  AB 29 (John A. Pérez)   Chapter 475, 
            Statutes of 2011 establishes GO-Biz within the Governor's 
            Office for the purpose of serving as the lead entity for 
            economic strategy and marketing of California on issues 
            relating to business development, private sector investment 
            and economic growth.

           5)Reorganization.   The Governor submitted a reorganization plan 
            to the Little Hoover Commission, which includes transferring 
            economic development programs from BT&H to GO-Biz.  The Little 
            Hoover Commission is in the process of reviewing the plan 
            before it submits its recommendation to the Legislature.

           6)There is no registered opposition to this bill.  
               


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081