BILL ANALYSIS �
AB 1543
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1543 (Holden) - As Introduced: January 23, 2014
Policy Committee: LaborVote: 6-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill adds the Governor's Office of Business and Economic
Development (GO-Biz) to the list of entities employers are
required to contact when ordering a mass lay-off, relocation or
termination at a covered establishment. In addition, the bill
requires the Employment Development Department (EDD) to post
notice of mass lay-off, relocation or termination on its
Internet Web site, upon receipt.
FISCAL EFFECT
Minor, absorbable costs to EDD.
COMMENTS
1)Purpose. Current law requires covered employers to provide a
copy of the federal Worker Adjustment and Retraining
Notification (WARN) Act notice to affected employees, the EDD,
the local workforce investment board and specified government
officials 60 days prior to initiating a mass layoff,
termination or relocation. According to the author, providing
the WARN Act notice to GO-Biz allows for quick and rapid
assistance to an employer who is relocating or closing, and
helps identify ways state resources can be utilized to keep
operations going in California.
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,
AB 1543
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Chapter 475, Statues of 2010.
3)Related legislation .
AB 53 (John A. P�rez) of 2013 would have required GO-Biz to
prepare the California Economic Development Strategic Plan and
a triennial report to the Legislature. The bill was vetoed by
Governor Brown with the following 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 P�rez helped make possible
earlier this year. In addition, thanks to legislation authored
by Speaker P�rez, 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 all these reasons, I don't think a study and
report will bring any additional focus to our efforts.
The bill also required a copy of the WARN notice be provided
to GO-Biz and posted on the EDD Web site. The veto message
did not address these specific requirements.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081