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AB-906 California Economic Development Strategic Action Plan.(2019-2020)

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Date Published: 04/30/2019 08:55 AM
AB906:v98#DOCUMENT

Amended  IN  Assembly  April 29, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 906


Introduced by Assembly Members Cooley, Cervantes, and Kiley
(Coauthors: Assembly Members Dahle, Gallagher, and Petrie-Norris)

February 20, 2019


An act to add Section 12096.35 to the Government Code, relating to economic development.


LEGISLATIVE COUNSEL'S DIGEST


AB 906, as amended, Cooley. California Economic Development Strategic Action Plan.
The Economic Revitalization Act establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, to serve as the Governor’s lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The office, among others, makes recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic goals.
This bill would require the economic development activities of this state to be guided by the policies, priorities, and actions identified in the California Economic Development Strategic Action Plan, which would, among other things, set a comprehensive agenda and framework for the purpose purposes of supporting regional economic priorities, increasing the state’s overall national and international competitiveness, to support regional economic priorities, and lead the state toward and resulting in inclusive economic growth. This bill would require GO-Biz to develop facilitate the development of the action plan with public input and a stakeholder advisory group, through a public engagement process that includes local and regional stakeholders, and to post the first action plan on its Internet Web site internet website on or before January 10, 2021. The bill would require, by July 1, 2020, GO-Biz to commission prepare or cause to be prepared an economic status report before the development of the action plan that would include, among other things, an evaluation of the strengths and weaknesses of the California economy. California’s national and international competitiveness, as specified. This bill would require the action plan to be reviewed biennially and revised every 5 years in accordance with certain requirements.
Existing law creates the California Economic Development Fund in the State Treasury for the purpose of receiving federal, state, local, and private economic development funds, which, upon appropriation by the Legislature, may be expended by GO-Biz to provide matching funds for loans or grants to public and private entities and for other economic development purposes.
The bill would authorize GO-Biz to accept nonstate moneys for the purposes of commissioning preparing, developing, and updating the economic status report and developing and revising the action plan. The bill would require the deposit of any amounts received by GO-Biz into the Economic Action Plan Account, which this bill would establish in the California Economic Development Fund. This bill would make those amounts available to the office for those purposes upon appropriation by the Legislature.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California’s regional economies compete in an increasingly connected and complex global market driven by changes in technologies, demographics, and geopolitics.
(b) Public policy plays multiple and critical roles in creating the conditions that attract private capital investment, while encouraging equitable and sustainable economic growth.
(c) Scores of state, regional, and local programs strive to develop skilled workers, to attract and grow employers, and to support small businesses and entrepreneurs. Billions of dollars are spent each year on infrastructure to support development, transportation, and trade. Dozens of programs promote industries and encourage commerce.
(d) Yet California lacks an assessment of its competitiveness agenda and a coherent strategy that explicitly links state and regional priorities with goals and metrics, investments, and programs.
(e) An integrated economic strategy is essential to the success of existing and future programs and investments addressing the following:
(1) Growing inequality and the erosion of upward mobility in California that call for state policy to be intensely focused on increasing economic opportunity and security for all Californians.
(2) Global disruptions that are challenging California’s economic leadership in advanced manufacturing, agriculture, technology, health and life sciences, future mobility, and many other sectors.
(3) California’s commitment to reduce greenhouse gas emissions, to restore ecosystems, and to improve environmental health.
(4) A significant generational shift as baby boomers leave the marketplace and fewer, and more diverse, working age individuals take their place.
(f) To reconcile and align these ambitious and essential goals, California needs a “triple-bottom-line” strategy that simultaneously advances an inclusive economy through equity, prosperity, and sustainability while responding to market forces. California’s triple-bottom-line prosperity strategy should be predicated on partnerships among state and local governments, and among public, private, and civic organizations, through which projects can integrate legal authorities, financial resources, and organizational expertise.
(g) The development and review of an action plan is to be designed in a manner that helps the state identify economic development challenges and addresses the shifting economic landscape, changing demographics, and unique strengths of California’s industries, businesses, workers, and entrepreneurs.

SEC. 2.

 Section 12096.35 is added to the Government Code, to read:

12096.35.
 (a) The economic development activities of this state shall be guided by the policies, priorities, and actions identified in the California Economic Development Strategic Action Plan. The development of the action plan shall be developed facilitated by the office with public input and a stakeholder advisory group through a public engagement process that includes local and regional stakeholders pursuant to this section. The action plan shall do all of the following:
(1) Set a comprehensive agenda and framework for the purpose purposes of supporting regional economic priorities, increasing the state’s overall national and international competitiveness, to support regional economic priorities, and lead the state toward and resulting in inclusive economic growth.
(2) Establish a process for inclusive and collaborative regional economic development priorities to be brought forward and acted upon by relevant state partners.

(2)

(3) Be based on an economic status report, as required in subdivision (c). (c), and outcomes tracked through a California demographic index established pursuant to subdivision (i).

(3)Contain a list of recommended goals, priorities, and actions that would advance the purposes of the action plan, as provided in this subdivision. At minimum, the recommendations shall include, but not be limited to, a list of legislative, regulatory, and administrative initiatives to address key issues, seize opportunities, and ease impediments.

(4)Identify potential funding options for covering the cost of implementing the recommendations.

(5)

(4) Be developed through a public engagement process pursuant to subdivision (e).

(6)

(5) Be used to guide the development and recommended actions of related state functional plans and strategies of state agencies, boards, and commissions.
(b) (1) The office shall initiate the preparation of an action plan through the convention of interested stakeholders and state, regional, and local stakeholders, the publication of the economic status report, as report required by subdivision (c). (c), and the opening of a public comment period required in subdivision (e).
(2) The office shall first convene interested stakeholder groups and publish the economic status report no later than July 1, 2020. The office shall update the economic status report at least every five years following the initial publication date, and may periodically updated the report whenever the office deems necessary.
(c) At least six months before the development and update of the action plan, the The office shall commission prepare or cause to be prepared an economic status report that includes, but is not limited to, all of the following:
(1) An evaluation of the strengths and weaknesses of the California economy and the state’s prospects for future economic prosperity, California’s national and international competitiveness, benchmarked against 10 or more competitor states and regions in the world.

(2)An evaluation of the effectiveness of California’s economic development programs and tools in creating and retaining jobs, supporting entrepreneurship, attracting and developing advanced industries, and promoting inclusive growth.

(3)

(2) An evaluation of each region’s national and international competitiveness, including competitiveness and identification of related major proposals, policies, and goals, and of the effectiveness of state programs goals supporting regional needs. This information shall include information submitted by the regions.
(3) An evaluation of the effectiveness of state programs and tools in meeting regional needs, including creating and retaining jobs, supporting entrepreneurship, attracting and developing advanced industries, and promoting inclusive growth. This information shall include information submitted by the regions.
(4) An identification and evaluation of governmental and nongovernmental impediments to economic and business development, including startups, small businesses, and microbusinesses.
(5) An identification and an analysis of economic opportunities for underserved and high-risk populations and geographic areas.
(6) An evaluation of the adequacy of federal, state, and local infrastructure to meet current and future business needs, including goods and passenger movement and information networks. This evaluation shall include an analysis of current relevant funding models.
(7) An evaluation of opportunities to leverage federal resources for state and regional priorities.
(8) An evaluation of tactics for attracting private capital to the state and investment in state and regional priority areas.
(9) Identification of state state, local, and regional workforce preparation and delivery systems, including workforce training programs, apprenticeships, and incumbent worker training.
(10) Identification of federal, state, and regional public agencies, departments, boards, and commissions that have economic and business development-related responsibilities.

(11)Recommendations

(10) Recommendations, in addition to those submitted by the regions pursuant to paragraph (2), on goals, priorities, and actions that would advance the purposes of the action plan, as provided in this section, including legislative, regulatory, and administrative initiatives to address key issues, seize opportunities, and ease impediments. The report shall also include potential funding options for covering the cost of implementing the recommendations.
(d) (1) The office shall update the economic status report at least every five years following the initial publication date, and may periodically update the report whenever the office deems necessary.

(d)(1)

(2) The office may undertake additional studies to assist in the development and update of the economic status report and the development, biennial review, and update of the action plan.

(2)

(3) In fulfilling the requirements of this section, the office may utilize portions of previous other studies and economic development documents that satisfy the requirements of this section to the extent feasible, current, and topically relevant.
(e) Upon completion of the economic status report required in subdivision (c), the office shall do the following:
(1) Post the economic status report on the office’s Internet Web site internet website and open a public engagement period to obtain feedback on the assessments and recommendations in the report.
(2) Engage with and encourage stakeholders to provide feedback on the assessments and recommendations during the public comment period.
(3) Convene a stakeholder advisory group group, pursuant to subdivision (f), to assist with reviewing the report, evaluating the stakeholder comments, and developing the action plan. The stakeholder advisory group may include representatives from businesses, labor unions, organizations representing the interests of diverse ethnic and gender groups, local government leaders, academic economists and business professors, chambers of commerce and other business organizations, economic development organizations, economic development groups focusing on regional economies, government agencies, and key industries. In convening the stakeholder advisory group, the office shall consider effectiveness when determining the membership and size of the group.
(f) In reviewing and evaluating the economic status report required in subdivision (c) and any comments submitted pursuant to paragraphs (1) and (2) of subdivision (e), the stakeholder advisory group shall consider how this information relates to supporting the following:
(1) Upward mobility, including enhanced economic opportunities, workforce development, wage and income growth, job creation, and poverty reduction.
(2) Local and regional economic development efforts.
(3) Supporting the state and regional competitiveness relative to other states and nations.
(4) Innovation and advanced technologies and industries.
(g) The action plan shall include the following:
(1) A statement of statewide economic development goals, with the development of a service model to support regionally created economic goals.
(2) A prioritized list of short-term and long-term issues that the action plan is designed to address.
(3) Identification of statewide and regionally dominant and emerging industry sectors.
(4) Legislative, A list of state and regional goals and actions that advance the purposes of the action plan as provided in this section. At minimum, the recommendations shall include, but not be limited to, a list of legislative, regulatory, and administrative initiatives to address key state and regional issues, seize opportunities, and ease impediments.
(5) Identification of key state government federal, state, and regional public entities and nonstate public and private partners. partners that are available to support implementation of the action plan.
(6) An outline of funding options for key features of the action plan.
(7) An evaluation process and metrics that will be used to assess, track, and report on the implementation and success of the action plan.
(h) The office, prior to action plan approval, shall seek the advice of the Legislature.
(i) (1) Based on comments submitted pursuant to paragraphs (1) and (2) of subdivision (e), the stakeholder advisory group pursuant to subdivision (f), and the Legislature pursuant to subdivision (h), the office shall consider modifications to goals, policies, and actions recommended in paragraph (10) of subdivision (c) and publish the action plan. Nothing in this subdivision limits the authority of the office to seek additional comments on the action plan before its finalization.
(2) The office shall post the approved action plan on its Internet Web site internet website and submit a letter providing notice of its public availability to the Legislature in the manner required pursuant to Section 9795.
(3) The office shall post the first action plan, and the Legislature shall receive the notice required by paragraph (2), no later than January 10, 2021. The office shall revise the action plan every five years following the initial publication in accordance with the reviews described in subdivision (k), and shall post the revised action plan, and submit a notice to the Legislature as required in paragraph (2), every five years following the initial publication date.
(j) (1) Within 120 days of submitting notice of the posting of the action plan, the office shall publish a list of California demographic index that contains performance indicators that will be used to evaluate and track the implementation of the action plan. The list
(2) The index shall include specific benchmarks, metrics, and timelines for each recommendation that is under the control or direct influence of the state. In meeting the requirements of this subdivision, the office shall engage relevant stakeholders for the inclusion of metrics, benchmarks and timelines for the industry-driven recommendations. the following:
(A) The industry-driven recommendations.
(B) The local and regional economic development-driven recommendations.
(C) The small business, microenterprise, and social enterprise-driven recommendations.
(k) (1) The action plan plan, that shall include regional report cards, shall be reviewed through a public process facilitated by the office at least every two years following its publication on the office’s Internet Web site. internet website. Each region is authorized to submit a regional report card, including recommendations and modifications.
(2) The biennial review shall evaluate the action plan compared to relevant factors, including, but not limited to, significant shifts in state or regional economic environments, available funding models, the removal of impediments, and new implementation options for identified priorities and goals.
(3) The biennial review shall include each of the following:
(i) A progress report on its implementation.
(ii) Comments from representatives of regions, industries, small businesses, and other stakeholder groups.

(ii)

(iii) Identification of the next steps toward implementation of the action plan or proposed revisions to the action plan, as appropriate.
(4) The office shall notify the Legislature, consistent with Section 9795, each time the action plan is reviewed pursuant to this subdivision.
(l) (1) The commission preparation and update of the economic status report and the development and revision of the action plan may be funded in whole or in part by nonstate funds.
(2) The office may accept nonstate moneys, including, but not limited to, federal and private sector funds, for the purposes of commissioning preparing, developing, and updating the economic status report and developing the action plan. A donor shall not donate more than 25 percent of funding for the economic status report, action plan. plan, and any updates to these documents. Any amounts received by the office shall be deposited in the Economic Action Plan Account, which is hereby created in the California Economic Development Fund. Any amounts in the account, upon appropriation by the Legislature, shall be available for the office to effectuate its purposes as set forth in this section.
(3) For each donation that it receives pursuant to this subdivision, the office shall post a report on its Internet Web site internet website within 30 days of receiving that donation containing all of the following information:
(A) The name and address of the donor.
(B) The amount of the donation.
(C) The date the donation was made.
(m) As used in this section, “California Economic Development Strategic Action Plan” or “action plan” means the California Economic Development Strategic Action Plan established pursuant to this section.