BILL ANALYSIS �
AB 1543
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1543 (Holden) - As Amended: April 21, 2014
Policy Committee: LaborVote: 6-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Employment Development Department (EDD)
to forward a copy of the federal Worker Adjustment and
Retraining Notification (WARN) Act notice to the Governor's
Office of Business and Economic Development (GO-Biz).
Additionally, this bill requires EDD and GO-Biz to post this
notice on its Internet Web site.
FISCAL EFFECT
Minor costs to EDD to forward the WARN notice to GO-Biz and for
both EDD and GO-Biz to post the notice on their Web sites.
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 2176 (John A. P�rez), pending in the
Jobs, Economic Development, and the Economy Committee,
requires GO-Biz to make recommendations to the Governor and
Legislature on new state policies, programs, and actions, or
amendments to existing programs, as specified. The bill also
requires a copy of the WARN notice be provided to GO-Biz and
posted on the EDD Web site.
4)Prior 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."
AB 53 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