BILL ANALYSIS Ó
AB 2176
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2176 (John A. Perez) - As Amended: April 9, 2014
Policy Committee: JEDE Vote:6-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Governor's Office of Business and
Economic Development (GO-Biz) to develop recommendations for a
state economic development plan and to be notified when an
employer submits notice to the state of his or her intent to
undertake a mass layoff, as specified. Specifically, this bill:
1)Requires GO-Biz to develop recommendations for an economic
development strategic plan for the state. Requires, rather
than authorizes, GO-Biz to do the following:
a) Make recommendations to the Governor and the Legislature
that relate to statewide economic goals, respond to
emerging economic problems, and to ensure that all state
policies and programs conform to the adopted state economic
and business development goals.
b) Coordinate development of policies and take actions that
ensure federal grants are expended in a manner that
advances statewide economic goals and objectives;
c) Market the business and investment opportunities
available in California;
d) Provide economic, workforce, and demographic data as
well as information on state programs, permitting, and
incentives.
e) Establish a well-advertised telephone number, an
interactive Internet Web site, and an administrative
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structure that supports the facilitation of business
development and investment in the state.
f) Encourage collaboration among research institutions,
startup companies, local governments, venture capitalists,
and economic development agencies to promote innovation.
g) Foster relationships with overseas entities to improve
the state's image as a destination for business investment
and expansion.
h) Conduct research on the state's business climate.
i) Support small business development.
2)Includes GO-Biz in the required written notification from an
employer ordering a mass layoff, relocation, or termination,
and requires the Employment Development Department (EDD) to
post the notice on its Internet Web site, upon receipt.
FISCAL EFFECT
1)General Fund costs in the range of $100,000 to $500,000,
depending on Go-Biz recommendations for the state's economic
development strategic plan.
2)Minor costs to EDD to forward the federal Worker Adjustment
and Retraining Notification (WARN) notice to GO-Biz and for
both EDD and GO-Biz to post the notice on their Web sites.
COMMENTS
1)Purpose . 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, AB 29 (Perez), Chapter 475, Statues of 2010
codified and renamed the office as the Governor's Office of
Business and Economic Development (GO-Biz).
According to the author, AB 29 made permissive specific tasks
and duties for GO-Biz, including providing the Governor and
Legislature with recommendations on new state policies,
programs, and actions, to advance statewide economic goals and
respond to emerging economic problems and opportunities.
The last statewide economic strategy report was released in
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2002, by the California Economic Strategy Panel, "Creating a
Shared California Economic Development Strategy: A Call to
Action." In 2011, however, the Economic Strategy Panel was
removed from statute.
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, addressing the
relocation of large manufacturers or the closure of a large
business employer.
AB 2176 requires Go-Biz to develop an economic development
strategic plan for the state and requires, rather than
authorizes, several tasks and duties related to the strategic
plan.
2)Related legislation. AB 1543 (Holden) requires EDD to forward
a copy of the 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.
3)Prior legislation . AB 53 (John A. Pérez) of 2013, similar to
this bill, required GO-Biz to prepare the California Economic
Development Strategic Plan and a triennial report to the
Legislature. AB 53 also required a copy of the WARN notice be
provided to GO-Biz and posted on the EDD Web site.
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 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 all these reasons, I don't think a study and
report will bring any additional focus to our efforts."
AB 2176
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Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081