BILL ANALYSIS Ó
AB 53
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GOVERNOR'S VETO
AB 53 (John A. Pérez)
As Amended September 3, 2013
2/3 vote
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|ASSEMBLY: |55-21|(May 30, 2013) |SENATE: |28-11|(September 9, |
| | | | | |2013) |
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|ASSEMBLY: |57-19|(September 10, | | | |
| | |2013) | | | |
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Original Committee Reference: J., E.D. & E.
SUMMARY : Requires the Governor's Office of Business and Economic
Development (GO-Biz) to lead the preparation of the California
Economic Development Strategic Plan (ED Strategy), as specified. In
addition, the bill requires a copy of the Worker Adjustment and
Retraining Notification Act (WARN) notice be provided to GO-Biz and
that it be posted on the Employment Development Department (EDD) Web
site.
The Senate amendments:
1)Modify the update schedule to be two years following the first
report period.
2)Remove the specific requirement to convene one or more stakeholder
meetings to help develop recommendations for the strategy and,
instead, require a stakeholder advisory meeting following the
completion of the strategy.
3)Specify that GO-Biz may utilize portions of previous studies in
developing the strategy.
4)Provide that the ED Strategy may be funded in whole or in part by
nonstate funds, the sources of which are to be reported, as
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specified.
5)Make other clarifying and technical changes.
EXISTING LAW :
1)Establishes GO-BIZ within the Governor's Office for the purpose of
serving as the lead state entity for economic strategy and
marketing of California on issues relating to business
development, private sector investment and economic growth.
2)Requires a copy of the federal WARN notice be provided by a
covered employer to specified state and local government entities
60 days prior to initiating a mass layoff, termination, or
relocation.
FISCAL EFFECT : According to the Senate Appropriations Committee,
GO-Biz estimates that it would incur a cost of $500,000 (General
Fund) and EDD estimates it incur minor and absorbable costs. To the
extent that 1) existing studies could be used to satisfy the bill's
reporting requirements, and 2) non-General Fund funding sources are
identified, costs could be lower.
COMMENTS : This measure proposes the development of a strategy to
guide the state's economic development activities. Just like a
business strategy, a state strategy provides the big picture that
shows how all the individual activities are coordinated to achieve a
desired end result. As the ninth largest economy in the world,
California's lack of a strategic plan impedes the state's ability to
communicate clear priorities on key issues such as infrastructure
development, workforce preparation, and support for emerging and
dominant industry sectors within the state's nine regional
economies.
The policy committee analysis includes additional information on the
advantages of a strategy, the interrelationships between state
planning and funding, and the role of GO-Biz.
What a strategy could accomplish: There are eight key drivers of
the California economy: capital, infrastructure, labor, business,
education, consumers, nonprofits, and government actions. Each of
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these drivers has its own unique characteristics, as well as
qualities that they share in common. In addition, each of the
drivers is inextricably linked within the overall economy. A
weakness within any one of the drivers affects the others.
As an example, California's aging infrastructure limits the state's
ability to move products from farm to factories and on to foreign
and domestic markets. These delays in moving goods and the higher
costs of transportation impacts businesses all along the supply
chain resulting in less job growth, lower discretionary income, and
ultimately less tax revenues. While the impacts of poor quality
infrastructure are known, addressing this challenge requires a
coordinated and comprehensive approach by both public and private
stakeholders.
The ED Strategy would serve as a single document for identifying
important economic issues, engaging stakeholders in the development
of solutions, and the prioritizing of key state actions.
Up until August 2011, existing law required the state to have a
two-year state Economic Development Strategic Plan, substantially
similar to the ED Strategy proposed in this bill. This bill
re-establishes the mandate for a comprehensive strategy to guide
state actions related to job creation, business development, and
attraction of private sector investment.
GOVERNOR'S VETO MESSAGE :
This bill requires the Governor's Office of Business and
Economic Development (GO Biz) to prepare the California
Economic Development Strategic Plan and a triennial
report to the Legislature.
GO Biz is now implementing the state's new economic
development initiative that Speaker Pérez helped make
possible earlier this year. In addition, thanks to
legislation authored by Speaker Pérez, GO Biz is
expanding direct foreign investment, promoting export of
California products, removing unnecessary government
barriers for businesses, and helping large and small
businesses innovate, grow, and prosper in California. For
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all these reasons, I don't think a study and report will
bring any additional focus to our efforts.
Analysis Prepared by: Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0002899