BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 53
                                                                  Page  1

          Date of Hearing:   May 15, 2015

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 53 (John A. Pérez) - As Amended:  May 1, 2013 

          Policy Committee:                              JEDE Vote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Governor's Office of Business and  
          Economic Development (GO-Biz) to lead the preparation of a  
          biennial California Economic Development Strategic Plan, as  
          specified.   In addition, the bill requires the Employment  
          Development Department (EDD) to post a copy of any notice  
          provided by an employer of a mass layoff, relocation or  
          termination.  

           FISCAL EFFECT  

          1)Significant costs to GO-Biz in the hundreds of thousands of  
            dollars for the development of a statewide economic strategic  
            plan.

          2)Minor and absorbable costs to EDD.

           COMMENTS  

           1)Purpose  .  The author states AB 53 requires the development of  
            a statewide economic strategic plan that will provide an  
            economic development roadmap to guide public policy decisions  
            and actions to foster and promote California's economic growth  
            and competitiveness.  According to the author, recognizing the  
            need to better assist businesses in California and to attract  
            new and emerging companies to California, the AB 53 strategic  
            plan requirement seeks develop recommended actions that will  
            assist in this effort and draw input from labor unions, local  
            government leaders, academics, Chambers of Commerce and other  
            business organizations and government agencies.

            The author also points out under another provision of the  








                                                                  AB 53
                                                                  Page  2

            bill, GO-Biz will be provided mandatory reporting status,  
            pursuant to the WARN Act, so that it can effectively respond  
            to companies that may be contemplating relocating, closing, or  
            significantly scaling back on their instate business  
            operations.  The author notes GO-Biz has the ability to  
            convene strike forces or teams to address key business  
            development situations, including, but not limited to,  
            attracting new businesses, the relocation of large  
            manufacturers or the closure of a large business employer. 
          
           2)Office of Business and Economic Development  :  In April 2010,  
            the Governor's Office of Economic Development was established  
            to serve the needs of businesses and economic developers.   
            While initially established through executive order, the  
            office was later codified and renamed as the Governor's Office  
            of Business and Economic Development (GO-Biz), in AB 29,  
            Chapter 475, Statues of 2010.  In 2012, GO-Biz directly  
            assisted 5,308 companies, resulting in the creation and/or  
            retention of 9,050 jobs and $1.45 billion in investments.

           3)Prior legislation  .   

             a)   AB 1233 (V. Manuel Pérez) of 2012, would have required  
               the Director of GO-Biz to prepare a five-year economic and  
               workforce development strategy.  This bill was held in the  
               Assembly Appropriations Committee.

             b)   AB 699 (Portantino and V. Manuel Pérez) of 2009, would  
               have updated the requirements for the development of a  
               State Economic Development Strategy.  This bill was held in  
               Assembly Appropriations Committee.



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