California Assembly Bill AB1233 Amended / Bill

 BILL NUMBER: AB 1233AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 4, 2012 AMENDED IN ASSEMBLY AUGUST 15, 2011 INTRODUCED BY Assembly Member V. Manuel Prez FEBRUARY 18, 2011 An act to add  Sections 15570 and 15572 to   Article 6 (commencing with Section 12098.8) to Chapter 1.6 of Division 3 of Title 2 of  the Government Code, relating to state government, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1233, as amended, V. Manuel Prez. State government: economic development.  Existing law establishes the Governor's Office of Business and Economic Development, within the Governor's office, to be administered by a director appointed by the Governor. The office serves the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The office exercises powers related to economic development, including, among others, making recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic goals.   This bill would require the director, in consultation with the Secretary of Labor and Workforce Development, to prepare a California Economic and Workforce Development Strategy, as specified, to be updated every 5 years. The bill would require the strategy to make recommendations regarding an economic and workforce development blueprint for the state covering a 5-year time period. The bill would require the director to consult with certain agencies in preparing the blueprint, and would require the blueprint to address certain topics.   This bill would declare that it is to take effect immediately as an urgency statute.   (1) Existing law establishes the Labor and Workforce Development Agency in state government, and provides that the Secretary of Labor and Workforce Development, the executive officer of the agency, is directly responsible to the Governor for the operations of each department, office, and unit within the agency.   This bill would require the secretary to prepare a California Economic and Workforce Development Strategy, as specified, to be updated every 5 years. The bill would require the secretary to undertake this process anew in each succeeding 5-year cycle in order to update the economic strategy prior to October 31 of each succeeding 5th year.   This bill would authorize the strategy to meet all or a portion of other state-level strategies, require the strategy to make recommendations regarding an economic development plan for the state covering a 5-year period, and require the strategy to contain specified items. The bill would require the secretary to lead the preparation of the strategy, and authorize the secretary to call on the assistance of the California Workforce Investment Board in fulfilling this duty. The bill would also require the secretary to prepare a preliminary strategy, to post that document on the agency's Internet Web site, and to submit written notice of that document's posting to the relevant policy and fiscal committees of each house of the Legislature by July 1, 2013. This bill would also require the relevant policy and fiscal committees of each house of the Legislature to review the preliminary strategy and hold hearings regarding the preliminary strategy, as specified. The bill would require the secretary to prepare the final version of the strategy within 2 months of the final hearing held by a policy or fiscal committee of either house of the Legislature on the preliminary strategy.   (2) This bill would require the Secretary of Labor and Workforce Development to create an assessment addressing specified considerations. The bill would also require the secretary to review the strategy within 5 years of the date of its finalization, and every 5 years thereafter, and to make recommendations on how to update the strategy.   (3) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Article 6 (commencing with Section 12098.8) is added to Chapter 1.6 of Division 3 of Title 2 of the   Government Code  , to read:   Article 6. State Economic and Workforce Development Strategy 12098.8. (a) The director, in consultation with the Secretary of Labor and Workforce Development, shall prepare the California Economic and Workforce Development Strategy. In fulfilling this requirement, the director and the secretary shall be assisted by the California Workforce Investment Board, established pursuant to Article 1 (commencing with Section 14010) of Chapter 3 of Division 7 of the Unemployment Insurance Code. The California Economic and Workforce Development Strategy may serve to meet all or a portion of other state-level strategies, including, but not limited to, the state plan required by the federal Workforce Investment Act (Public Law 105-220). (b) The strategy shall make recommendations regarding an economic and workforce development blueprint for the state covering a five-year time period, and shall contain all of the following: (1) A statement of economic goals and objectives for the state. (2) A prioritized list of significant issues facing the economy of the state and how these issues and trends could be impediments to achieving the goals, objectives, and recommendations in the blueprint. (3) An evaluation of the effectiveness of the state's existing economic development programs in creating and retaining jobs, improving productivity, increasing innovation, providing 21st century workforce skills, and attracting industries providing employment within the state's core and emerging industry clusters. (4) An evaluation of the adequacy of state and local physical, electronic, and human infrastructure, including skills relating to digital technology, to meet the state's current and future needs, and a discussion of the appropriate role for state government to improve inadequacies identified in the state's physical, electronic, and human infrastructure. (5) A list of key industries in which the state shall focus its economic development efforts, including industries where the state has a current dominant position, and industries where the state has an emerging presence within the United States and global economies. This list shall be based on current local and regional priorities of the state's nine economic regions. (6) Recommendations for legislation, regulations, and administrative reforms that are necessary to improve the business climate and economy of the state and meet the state's economic goals and objectives. The recommendations shall address how all state entities have economic and workforce development-related responsibilities or authorities that impact economic and workforce activities in the state can foster greater economic property for all areas of the state, including historically underserved areas, such as those along the state's borders, rural areas, and within its inner cities. The recommendations shall support regional economic development efforts, small and microbusiness development, private investment especially in emerging domestic markets, workforce development among all worker skill levels, and California businesses accessing global markets. (7) Measurable outcomes and timelines for implementing the goals, objectives, and recommendations of the strategy. (8) An identification of key stakeholder partnerships to use in implementing the recommendations. (9) An identification of options for funding the goals, objectives, and recommendations. (c) The blueprint shall be based on existing and current assessments completed by relevant state, federal, local, and regional public and private organizations. As part of their deliberations in preparing the strategy, the director and the secretary shall do all of the following: (1) Consult with other state entities, including, but not limited to, all of the following: (A) The California Transportation Commission. (B) The California Workforce Investment Board. (C) The Small Business Council on Procurement. (D) The Treasurer. (E) The California Organized Investment Network. (F) The Department of Insurance. (G) The California Infrastructure and Economic Development Bank. (H) The State Energy Resources Conservation and Development Commission. (2) Review relevant background, findings, and recommendations of all of the following: (A) The California Transportation Plan, required to be updated pursuant to Chapter 2.3 (commencing with Section 65070) of Division 1 of Title 7, including those portions related to trade infrastructure and the movement of goods. (B) The international and foreign investment strategies of state and local governments. (C) The State Environmental Goals and Policy Report, prepared pursuant to Article 5 (commencing with Section 65041) of Chapter 1.5 of Title 7. (D) The five-year plan for funding infrastructure, prepared pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of Part 3. (E) The state workforce strategy submitted as a condition of receiving funding pursuant to the federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2938). (F) The workforce strategies developed by the Employment Training Panel of the California Community Colleges. (G) The goods movement strategy developed by the Department of Transportation. (d) (1) The director and the secretary shall prepare a preliminary California Economic and Workforce Strategy, post that document on the Cal-BIZ and the agency's Internet Web sites, and submit written notice of that document's posting to the relevant policy and fiscal committees of each house of the Legislature by July 1, 2013. (2) Development of the preliminary strategy pursuant to this subdivision shall be funded from nonstate funds and private donations. (e) The relevant policy and fiscal committees of each house of the Legislature shall review the preliminary strategy and hold hearings regarding the preliminary strategy within 90 days of the date that notice of that document's posting is sent to the relevant policy and fiscal committees of each house of the Legislature. (f) (1) Within two months of the final hearing held by a policy or fiscal committee of either house of the Legislature regarding the preliminary strategy, the director and the secretary shall prepare the final version of the strategy. (2) Upon the final strategy's completion, the director, the secretary, the Secretary of Business, Transportation and Housing, and the Secretary of Food and Agriculture shall post the preliminary and final strategies on each of their agencies' Internet Web sites. (3) The director and the secretary shall submit written notice of the completion of the final strategy and its posting to the agency Internet Web sites specified in paragraph (2), to the relevant policy and fiscal committees of the Legislature, as well as every state agency, office, board, and commission having economic and workforce development responsibilities. (g) In each succeeding five-year cycle, the director and the secretary shall update the strategy, pursuant to the procedures set forth in this section, on or before October 31 of each succeeding fifth year. This subdivision shall not prohibit the secretary from reviewing or making recommendations on how to update the strategy more frequently.   SEC. 2.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:   In order to preserve the public peace, health, and safety through the encouragement of economic development throughout the state's economic regions, it is necessary that this act take effect immediately.   SECTION 1.   Section 15570 is added to the Government Code, to read: 15570. (a) The secretary shall prepare the California Economic and Workforce Development Strategy. In fulfilling this requirement, the secretary shall be assisted by the California Workforce Investment Board, established pursuant to Article 1 (commencing with Section 14010) of Chapter 3 of Division 7 of the Unemployment Insurance Code. The California Economic and Workforce Development Strategy may serve to meet all or a portion of other state-level strategies, including, but not limited to, the state plan required by the federal Workforce Investment Act (Public Law 105-220). (b) The strategy shall make recommendations regarding an economic development strategic plan for the state covering a five-year time period, and shall contain all of the following: (1) A statement of economic goals for the state. (2) A prioritized list of significant issues facing the economy of the state. (3) Proposals for legislation, regulations, and administrative reforms necessary to improve the business climate and economy of the state. (4) An evaluation of the effectiveness of the state's economic development programs. (5) A list of key industries in which the state shall focus its economic development efforts. (6) Strategies to foster job growth and economic development covering all state agencies, offices, boards, and commissions that have economic development responsibilities. (c) Based on assessments completed by relevant state, federal, local, and regional public and private organizations, the strategy shall also include, at a minimum, all of the following components: (1) Policy goals, objectives, and recommendations necessary to implement a comprehensive economic and workforce development strategic plan for the state, identifying the priority for each within the overall strategy. (2) Measurable outcomes and timelines for implementing the goals, objectives, and recommendations of the strategy, showing the way in which key policy development and implementation efforts are coordinated with emerging issues. (3) An identification of impediments to achieving the goals, objectives, and recommendations described in paragraph (1) and the way in which they will delay the state's ability to improve its competitive position. (4) An identification of key stakeholder partnerships to use in implementing the recommendations. (5) An identification of options for funding the goals, objectives, and recommendations described in paragraph (1). (6) An identification of an organizational structure for the implementation of the policies, programs, and services recommended in the strategy. (d) (1) The secretary shall prepare a preliminary California Economic and Workforce Strategy, post that document on the agency's Internet Web site, and submit written notice of that document's posting to the relevant policy and fiscal committees of each house of the Legislature by July 1, 2013. (2) Development of the preliminary strategy pursuant to this subdivision shall be funded from private donations. (e) The relevant policy and fiscal committees of each house of the Legislature shall review the preliminary strategy and hold hearings regarding the preliminary strategy within 90 days of the date that notice oft hat document's posting is sent to the relevant policy and fiscal committees of each house of the Legislature. (f) (1) Within two months of the final hearing held by a policy or fiscal committee of either house of the Legislature regarding the preliminary strategy, the secretary shall prepare the final version of the strategy. (2) Upon the final strategy's completion, the Secretary of Labor and Workforce Development, the Secretary of Business, Transportation and Housing, and the Secretary of Food and Agriculture shall post the preliminary and final strategies on each of their agencies' Internet Web sites. (3) The Secretary of Labor and Workforce Development shall submit written notice of the completion of the final strategy and its posting to the agency Internet Web sites specified in paragraph (2) to the relevant policy and fiscal committees of the Legislature as well as every state agency, office, board, and commission having economic and workforce development responsibilities. (g) In each succeeding five-year cycle, the secretary shall update the strategy, pursuant to the procedures set forth in this section, on or before October 31 of each succeeding fifth year.   SEC. 2.   Section 15572 is added to the Government Code, to read: 15572. (a) As part of its deliberations in preparing the California Economic and Workforce Development Strategy, the Secretary of Labor and Workforce Development shall create an assessment addressing all of the following considerations: (1) The strengths and weaknesses of the state's economy within a regional, national, and global context, and the state's prospects for future economic prosperity, identifying industries and businesses in each of the state's nine regional economies that are significant in 2012, and those that are likely to be significant in 2021. (2) The current and emerging economic trends, areas in which the state has a comparative advantage to other states and foreign countries, and key opportunities for strategic alliances with other states and foreign countries. (3) The effectiveness of the state's economic and workforce development programs in creating and retaining jobs, improving productivity, increasing innovation, providing 21st century workforce skills, and attracting industries providing employment within the state's core and emerging industry clusters. (4) The ways in which private resources, including, but not limited to, investor networks, may be more effectively leveraged to attract additional private investment within the state's communities and small businesses. (5) The adequacy of state and local physical, electronic, and human infrastructure, including skills relating to digital technology, to meet the state's current and future needs, and a discussion of the appropriate role for state government to improve inadequacies identified in the state's physical, electronic, and human infrastructure. (6) Government impediments to economic development. (7) The role of innovation in keeping the state's regional economies vibrant, including models and strategies that encourage partnerships among public, academic, and private entities, located in this state or other states, that support the state's core and emerging industries. (8) The unique opportunities and challenges in developing businesses and attracting investment along the state's border areas and in emerging domestic markets. (9) A review of significant literature by the federal government, state governments, foreign countries, and international associations concerning competitive advantages. (b) As part of its deliberations in preparing the strategy, the secretary shall do all of the following: (1) Consult with other state entities, including, but not limited to, all of the following: (A) The California Transportation Commission. (B) The California Workforce Investment Board. (C) The Small Business Council on Procurement. (D) The office of the Treasurer. (E) The California Organized Investment Network. (F) The Department of Insurance. (G) The California Infrastructure and Economic Development Bank. (H) The State Energy Resources Conservation and Development Commission. (2) Review relevant background, findings, and recommendations of all of the following: (A) The California Transportation Plan, required to be updated pursuant to Chapter 2.3 (commencing with Section 65070) of Division 1 of Title 7, including those portions related to trade infrastructure and the movement of goods. (B) The international and foreign investment strategies of state and local governments. (C) The State Environmental Goals and Policy Report, prepared pursuant to Article 5 (commencing with Section 65041) of Chapter 1.5 of Title 7. (D) The five-year plan for funding infrastructure, prepared pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2. (E) The state workforce strategy submitted as a condition of receiving funding pursuant to the federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2938). (F) The workforce strategies developed by the Employment Training Panel and the California Community Colleges. (c) The secretary shall review the California Economic and Workforce Development Strategy within five years after the date it is finalized, and every five years thereafter, and make recommendations on how to update the strategy as the secretary deems appropriate. Nothing in this subdivision shall prohibit the secretary from reviewing or making recommendations on how to update the strategy more frequently.   SEC. 3.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to preserve the public peace, health, and safety through the encouragement of economic development throughout the state's economic regions, it is necessary that this act take effect immediately.