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AB-427 California Aerospace and Aviation Commission.(2017-2018)

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Date Published: 06/20/2018 09:00 PM
AB427:v93#DOCUMENT

Amended  IN  Senate  June 20, 2018
Amended  IN  Senate  June 18, 2018
Amended  IN  Senate  May 08, 2018
Amended  IN  Senate  April 26, 2018
Amended  IN  Assembly  January 11, 2018
Amended  IN  Assembly  January 03, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 427


Introduced by Assembly Member Muratsuchi
(Principal coauthor: Senator Allen)
(Coauthors: Assembly Members Berman, Bloom, Cunningham, Fong, Lackey, Obernolte, Patterson, and Quirk-Silva)
(Coauthor: Senator Wilk)

February 09, 2017


An act to add Part 6.8 (commencing with Section 15375) to Division 3 of Title 2 of the Government Code, relating to aerospace.


LEGISLATIVE COUNSEL'S DIGEST


AB 427, as amended, Muratsuchi. California Aerospace and Aviation Commission.
Existing law establishes the Spaceport Office in the Department of Transportation to seek and obtain federal funding for the commercialization of private space activities in the state. Existing law, for the January 1, 2014, lien date to, and including, the January 1, 2024, lien date, exempts from taxation qualified property, as defined, for use in space flight. Existing law authorizes airport districts to provide and maintain spaceports and landing places for space reentry traffic.
Existing law establishes the Governor’s Office of Business and Economic Development (office), which is 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.
This bill would establish the California Aerospace and Aviation Commission consisting of 16 members, as specified, to serve as a central point of contact for businesses engaged in the aerospace and aviation industries and to support the health and competitiveness of these industries in California. The bill would require the commission to make recommendations on legislative and administrative action that may be necessary or helpful to maintain or improve the state’s aerospace and aviation industries and would require the commission to report and provide recommendations to the Governor and the Legislature, as specified. The bill would require the commission to have at least 2 offices within existing operations of the state, as specified, and would require the operations of the commission to be supported through nonstate moneys. The bill would also require that funds received by the commission be deposited in the Aerospace and Aviation Account, which the bill would create in the California Economic Development Fund, to be used by the commission upon appropriation by the Legislature. The bill would enact other related provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares that, in 2016, the aerospace and defense industry within the United States provided, produced, or generated the following:
(1) Support for 1.7 million jobs within both businesses that produce end-user goods and services and within the industry’s supply chain.
(2) Approximately 2 percent of the nation’s employment base and 13 percent of the nation’s manufacturing employment base.
(3) Approximately $300 billion in economic value, representing 1.8 percent of total nominal gross domestic product in the United States, and 10 percent of total manufacturing output.
(4) Labor income of approximately 44 percent above the national average, at $93,000 average labor income per job, reflecting the highly skilled nature of the workforce.
(5) Tax receipts to federal, state, and local governments from companies and their employees of $63 billion, or about 1.7 percent of total tax revenues.
(b) The Legislature further finds and declares all of the following:
(1) Aerospace is one of California’s largest industries, with a total economic impact in 2014 of more than $100 billion annually, including $38.8 billion in indirect revenues that support related industries.
(2) California is a global leader in space instrumentation, satellite services and manufacturing, and engineering services. The state provides more than 50 percent of all aerospace engineering services and 59 percent of aircraft search, detection, navigation, guidance, and nautical instrumentation.
(3) The California aerospace industry employs 230,000 workers directly and supports 511,000 jobs across related industry sectors, including finance, construction, and transportation.
(4) Key California strengths include having a capable and skilled workforce, with numerous technical universities to provide a pipeline for the industry, ideal climate conditions for flight-testing, large restricted airspace, high concentration of military operations, easy access to international manufacturing as an aerospace industry legacy, major international shipping ports, and an emerging startup scene, which has introduced new players such as SpaceX, Orbital ATK, and Virgin Galactic, among others, into the area.
(5) California’s position as a global leader, however, is being increasingly challenged. Primary industry challenges have been identified to include competition from abroad in aerospace manufacturing, a declining in-state customer base with government contracts, and state tax credits that need modification to match incentives in other states.

SEC. 2.

 Part 6.8 (commencing with Section 15375) is added to Division 3 of Title 2 of the Government Code, to read:

PART 6.8. California Aerospace and Aviation Commission

15375.
 This part shall be known, and may be cited, as the California Aerospace and Aviation Act of 2018.

15376.
 (a) The Legislature finds that the aerospace and aviation industries in California provide unique and significant contributions to the economy and history of California.
(b) The Legislature further finds that the significant benefits provided to California by the aerospace and aviation industries are in jeopardy as a result of the concerted efforts of other states and countries to lure the industry away from California.
(c) The Legislature declares that there is a need for a concerted and collaborative effort by the state and local governments within the state to provide an environment supportive of, and conducive to, the undertakings of the aerospace and aviation industries in this state.

15377.
 (a) There is in the Governor’s Office of Business and Economic Development, the California Aerospace and Aviation Commission consisting of 16 members. Any reference in this part to the commission shall be deemed to refer to the California Aerospace and Aviation Commission. The Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall appoint the voting members, as provided in subdivisions (c) to (e), inclusive.
(b) (1) All members of the commission, other than the ex officio nonvoting members, shall serve at the pleasure of the appointing authority for a term of two years from the effective date of the appointment, except that the initial term of a member appointed prior to January 1, 2020, pursuant to paragraph (2), (4), (5), or (6), inclusive, of subdivision (c) shall be three years.
(2) An individual shall not serve more than three terms on the commission.
(c) The members appointed by the Governor shall be as follows:
(1) Three members shall be from large aerospace or aviation corporations.
(2) Two members shall be from small- and medium-size aerospace or aviation businesses.
(3) One member shall be from a local or regional economic development corporation.
(4) One member shall be from a seaport that exports aerospace or aviation equipment.
(5) One member shall be from the aerospace or aviation industry supply chain.
(6) One member shall be from a general aviation airport.
(7) One member shall have workforce development experience from an aerospace or aviation-related field.
(d) The members appointed by the Speaker of the Assembly shall be as follows:
(1) One member shall be from California’s higher education system.
(2) One member shall be a member or an employee of a union or guild of aerospace or aviation employees.
(e) The members appointed by the Senate Committee on Rules shall be as follows:
(1) One member shall be a representative of investment and incubators of the aerospace or aviation industry.
(2) One member shall be a member or an employee of a union or guild of aerospace or aviation employees.
(f) The ex officio nonvoting members of the commission shall be as follows:
(1) The Director of the Governor’s Office of Business and Economic Development, who may designate a representative to serve on his or her behalf.
(2) The Director of the California Military Department, who may designate a representative to serve on his or her behalf.

15378.
 (a) The Governor shall appoint the director of the commission. The commission may submit a list of recommended candidates for the position of director to the Governor for consideration.
(b) The director of the commission shall report to the Director of the Governor’s Office of Business and Economic Development and shall receive a salary to be determined by the Department of Human Resources.
(c) The Director of the Governor’s Office of Business and Economic Development, or his or her designee, shall act as the commission director during a vacancy in that position and during a temporary absence, disability, or unavailability of the director to perform his or her duties.

15379.
 (a) The commission shall meet at least four times a year, with the first meeting being scheduled on or before May 1, 2019.

(b)Commission meetings may be held in person, via the Internet, or via telephone. The commission may meet without a quorum for the purpose of taking testimony. No official acts may be approved by the commission without a quorum being present.

(c)

(b) The commission shall select a chairperson and a vice chairperson from among its members. The vice chairperson shall act as chairperson in the chairperson’s absence.

(d)

(c) Each commission member shall serve without compensation. Actual and necessary travel expenses for each commission member while on official business of the commission shall be reimbursed.

15380.
 The commission is authorized to contract for consultants and appoint an advisory board. A member of the advisory board shall not receive any compensation, or use the name of the commission on any letterhead, business card, or identification badge except to the extent that the person is authorized to do so by the commission.

15381.
 (a) (1) The director of the commission shall provide staff support to the commission. The Director of the Governor’s Office of Business and Economic Development may assign additional staff on a temporary or permanent basis to support the work of the commission.
(2) The commission shall have at least two offices strategically located within the state, one within northern California and one within southern California. These offices shall be contained within existing operations of the Governor’s Office of Business and Economic Development.
(b) Operations of the commission shall be supported through nonstate moneys.
(c) (1) Unless otherwise specified, all moneys received by the commission shall be deposited in the Aerospace and Aviation Account, which is hereby created within the California Economic Development Fund, established pursuant to Section 13997.6. Moneys in the Aerospace and Aviation Account shall, upon appropriation by the Legislature, be used by the commission for purposes of this part.
(2) Any funds appropriated to, or for use by, the commission for purposes of this part shall be under the control of the Director of the Governor’s Office of Business and Economic Development or his or her designee.
(3) (A) The commission may accept nonstate moneys, including, but not limited to, federal funds and private donations, for the purposes of operating the commission and undertaking commission activities, subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).
(B) The commission shall not accept a private donation from a single donor in excess of 25 percent of the annual budget of the commission in a calendar year.
(C) For each private donation that the commission receives to fund the work of the commission, the commission shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain all of the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any.
(D) Nothing in this section shall affect any requirement of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).

15382.
 (a) The purpose of the commission is to serve as a central point of contact for businesses engaged in the aerospace and aviation industries and to support the health and competitiveness of these industries in California.
(b) The commission shall make recommendations to the Legislature, the Governor, the Governor’s Office of Business and Economic Development, and other state agencies on legislative or administrative actions that may be necessary or helpful to maintain and improve the position of the state’s aerospace and aviation industries in the national and world markets.
(c) In undertaking its mission and responsibilities, the commission may do all of the following:
(1) Advise the Legislature and the Governor on issues relating to the aerospace and aviation industries.
(2) Hold hearings, meetings, and other activities designed to solicit information from aerospace and aviation businesses and related stakeholders.
(3) Host and participate in trade shows.
(4) Approve or modify any marketing and promotion plan developed by the director to promote aerospace and aviation industries in the state.
(5) Adopt operational rules and procedures, consistent with the authorities and requirements of this part, the Governor’s Office of Business and Economic Development, and general operating procedures of the state.
(6) Request and obtain any information from state entities necessary to carry out the purposes of this part.
(7) Accept grant moneys for the purpose of implementing this part.
(8) Accept gifts and donations for the purpose of implementing this part.

15383.
 (a) Notwithstanding Section 10231.5, the commission shall annually report on its activities. At a minimum, the report shall include a list of activities, outcomes of those activities, trends impacting the competitiveness of California’s aerospace and aviation industry, and key economic data about the industry.
(b) The report shall be available through a link on the commission’s Internet Web site no later than 90 days following the close of the fiscal year. A notice that this requirement has been met shall be provided to the Chief Clerk of the Assembly, the Secretary of the Senate, and the relevant policy and fiscal committees of both houses of the Legislature. Reports and recommendations provided to the Legislature pursuant to this part shall be submitted pursuant to Section 9795.