California Assembly Bill AB538

California 2021-2022 Regular Session

• Introduced: 2/10/21
• Refer: 2/18/21
• Report Pass: 4/28/21
• Refer: 5/3/21
• Refer: 5/12/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/2/21
• Refer: 6/9/21
• Report Pass: 6/15/21
• Refer: 6/15/21
• Report Pass: 6/21/21
• Refer: 6/21/21
• Refer: 7/5/21

Caption

California Aerospace Commission: establishment.

Impact

The bill mandates that the commission be comprised of 15 members representing various sectors of the aerospace industry. The commission will operate under the purview of the Governor's Office of Business and Economic Development, ensuring alignment with state economic strategies. One significant aspect of the bill is the requirement that the commission's funding comes from nonstate sources, ensuring that taxpayers are not directly responsible for financial support. This funding model is intended to create a more sustainable and less dependent agency, set against a backdrop of a tight budget environment in state finances.

Summary

Assembly Bill 538 proposes the establishment of the California Aerospace Commission, aimed at enhancing the competitiveness and health of the aerospace industry in California. This commission will serve as a central contact point for businesses within the sector and will be tasked with providing legislative and administrative recommendations to relevant stakeholders including the Governor and the Legislature. The ultimate goal is to bolster the state's position in the global aerospace market and address emerging challenges posed by competing states and countries that seek to attract aerospace business operations away from California.

Sentiment

Overall, the sentiment surrounding AB 538 appears to be cautiously optimistic. Proponents within the business community view the establishment of the California Aerospace Commission as a crucial first step in securing California's dominance in the aerospace sector. They appreciate the intended proactive measures for economic engagement and support. However, concerns were raised regarding the reliance on nonstate funding, as it may limit operational flexibility and create challenges in ensuring stable funding channels for the commission's activities. Additionally, some stakeholders questioned whether the legislative body can adequately prioritize and address the industry's needs amid broader economic considerations.

Contention

Key points of contention in the discourse surrounding this legislation focus on the implications of nonstate funding and the potential impact of external influences on the commission's agenda. Critics argue that relying heavily on private donations could lead to conflicts of interest and potentially skew the commission's efforts towards the priorities of larger corporations at the expense of smaller entities. Furthermore, the temporary nature of the commission's authority, set to repeal in 2027 unless extended, raises questions about the long-term commitment to fostering the aerospace sector in California.