15570.
(a) There shall be established within state government, in the Government Operations Agency, the California Department of Tax and Fee Administration. The department’s headquarters shall be in Sacramento. The California Economic Strategy Panel within the office of the Secretary of Labor and Workforce Development shall research, facilitate outreach, and make policy and fiscal recommendations to the Governor and the Legislature on issues related to economic and workforce development. (b) (1) The department is under the control of a director. The Governor shall appoint the director, a chief deputy director, and a chief counsel, and these appointees shall hold office at the pleasure of the Governor. The appointment of the director shall be subject to confirmation by the Senate. panel shall be composed of the following 19 members:
(A) The Secretary of Labor and Workforce Development, who shall serve as the chairperson of the panel.
(B) The Secretary of Business, Transportation and Housing.
(C) The Secretary of Food and Agriculture.
(D) Eight persons appointed by the Governor, at least one of whom shall have a background in economic development.
(E) The Speaker of the Assembly or his or her designee.
(F) The President pro Tempore of the Senate or his or her designee.
(G) The Minority Leader of the Assembly or his or her designee.
(H) The Minority Leader of the Senate or his or her designee.
(I) One person appointed by the Speaker of the Assembly.
(J) One person appointed by the Senate Committee on Rules.
(K) The Director of the Office of Small Business Advocate.
(L) The Executive Director of the California Council on Science and Technology.
(2) Members of the panel shall be representatives of state government, business, economic developers, labor, finance, and academic institutions, and shall be broadly reflective of the state’s population as to gender, ethnicity, and geographic residence within California.
(3) At least one-half of all the persons on the panel shall be from the private sector, and at least two appointments shall be from private businesses with less than 50 employees. At least two appointments shall be from rural areas of the state.
(4) Beginning January 1, 2004, appointments to the panel shall be for four-year terms, except that the Governor’s appointments made pursuant to subparagraph (D) of paragraph (1) shall be made as follows:
(A) Four members shall be appointed on January 1, 2004, and every four years thereafter.
(B) Four members shall be appointed on January 1, 2004, for a two-year term.
(C) Upon the expiration of the initial appointments made pursuant to subparagraph (B), four members shall be appointed on January 1, 2006, and every four years thereafter.
(D) All members of the panel as of January 1, 2009, shall continue to serve as members of the panel for the remaining duration of their terms.
(c) In fulfilling the duties described in subdivision (a), the secretary shall, working in collaboration with the Secretary of Business, Transportation and Housing and the Secretary of Food and Agriculture, satisfy all of the requirements of this section.
(d) Among other activities, the panel shall prepare the California Economic Development Strategic Plan. The secretary, working in collaboration with the Secretary of Business, Transportation and Housing, and the Secretary of Food and Agriculture, shall lead the preparation of the plan. The secretaries shall invite businesses, labor unions, organizations representing the interests of diverse ethnic and gender groups, local government leaders, academic economists and business professors, national laboratories, the University of California, the California State University, private research universities, the California Community Colleges, chambers of commerce, business organizations in biotech, nanotech, multimedia, information technology, and similar fields, government agencies, and key industries to provide advice on economic development issues and to contribute to the preparation of the recommended economic strategy.
(e) As part of its deliberations in preparing the California Economic Development Strategic Plan, the panel shall, at a minimum, include an assessment of the following factors:
(1) Strengths and weaknesses of the California economy within a regional, national, and global context and the state’s prospects for future economic prosperity, identifying industries and businesses in the state’s nine regional economies that are significant in 2009, and those that are likely to be significant in 2019.
(2) Current and emerging trends, industries, and services and areas of the state, including electronic and surface or air transportation logistical capabilities, with a comparative advantage to other states and foreign countries. The assessment shall include a discussion of the state of innovation in foreign countries and the potential impact of the growing innovative capacity of foreign countries on the state’s ability to compete in the global economy, including advantages that businesses, research institutions, and financial sectors in the state could obtain by networking with foreign countries in a smart and productive manner.
(3) Effectiveness of California’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. The assessment shall also include the ways in which public resources, such as angel capital networks, may be more effectively leveraged to attract additional private investment within the state’s communities and small businesses.
(4) Adequacy of state and local physical, electronic, and human infrastructure, including digitally related skills, to meet the state’s current and future needs. The analysis shall also include a discussion of the appropriate role for state government to improve inadequacies identified in the state’s physical and human infrastructure.
(5) Government impediments to economic development.
(6) The role of innovation in keeping the state’s regional vibrant economies, 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.
(7) The unique opportunities and challenges in developing businesses and attracting investment along the state’s border areas and in emerging domestic markets.
(8) A review of significant literature by the federal government, state governments, foreign countries, and international associations concerning competitive advantages.
(f) As part of its deliberations in preparing the California Economic Development Strategic Plan, as well as other projects and activities of the panel, the panel shall, at a minimum, consult with other state entities, including, but not limited to, the Office of Military and Aerospace Support, the California Commission on Industrial Innovation, the California Transportation Commission, the California Workforce Investment Board, the Employment Training Panel, the California Small Business Board, the Small Business Council on Procurement, the office of the Treasurer, the California Organized Investment Network, the Department of Insurance, the California Infrastructure and Economic Development Bank, and the State Energy Resources Conservation and Development Commission.
(g) As part of its deliberations in preparing the California Economic Development Strategic Plan, as well as other projects and activities of the panel, the panel shall, at a minimum, review and include, as appropriate, any of the following materials:
(1) The most recent version of the State Transportation Plan, including those portions related to trade infrastructure and goods movement.
(2) The significant findings and recommendations of the current international trade and foreign investment strategies of the state and of local governments.
(3) The findings and recommendations of the Environmental Goals and Policy Report, of energy generation and generation-related reports, and of global warming studies related to the state.
(4) The findings and recommendations of the five-year infrastructure plan prepared pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of Part 3.
(5) The findings and recommendations of other key stakeholder organizations related to workforce and economic development.
(h) Based on the assessment by the panel pursuant to subdivision (e), the California Economic Development Strategic Plan shall include, at a minimum, the following components:
(c) (1) The director shall be solely responsible for selecting persons for career executive assignment positions and other noncivil service managers for the department. Policy goals, objectives, and recommendations required 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 for the strategic plan showing the way in which key policy development and implementation efforts are coordinated with emerging issues.
(3) 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) Identification of key stakeholder partnerships to use in implementing the California Economic Development Strategic Plan.
(5) Identification of options for funding the goals, objectives, and recommendations described in paragraph (1).
(6) Identification of an organizational structure, including global logistical and Internet-based networks, for the implementation of the policies, programs, and services recommended in the California Economic Development Strategic Plan, including a communication plan for key constituencies that details the way in which the plan interfaces with private, academic, and private nonprofit corporations.
(i) (1) The panel shall prepare a preliminary California Economic Development Strategic Plan and submit it to the Governor, the Chief Clerk of the Assembly, and the Secretary of the Senate prior to January 1, 2010. The Chief Clerk of the Assembly and the Secretary of the Senate shall distribute the preliminary strategic plan to the relevant policy and fiscal committees of the Legislature.
(2) Development of the plan pursuant to this subdivision shall be funded from private donations.
(j) The relevant policy and fiscal committees of each house of the Legislature shall review the preliminary strategic plan, holding hearings within 90 days of the date it is submitted to the Legislature. If the preliminary strategic plan is submitted to the committees when the Legislature is in recess, the hearings shall occur within 90 days of the date that the Members convene. The committees may make recommendations to the panel on the preliminary strategic plan, and the panel may modify the preliminary strategic plan in accordance with those recommendations.
(k) Within five months of the final hearing held by the Legislature on the preliminary strategic plan, the panel shall prepare the final version of the California Economic Development Strategic Plan. The panel, 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 the final California Economic Development Strategic Plan on their Internet Web sites.
(l) The panel shall review the California Economic Development Strategic Plan within five years of the date it was prepared, and every five years thereafter, and update the plan as the panel deems appropriate. Nothing in this subdivision prohibits the panel from reviewing or updating the plan more frequently.
(m) Beginning October 1, 2010, and biennially thereafter, the panel shall report to the Chief Clerk of the Assembly and the Secretary of the Senate on its activities during the preceding 24 months. The Chief Clerk of the Assembly and the Secretary of the Senate shall transmit the report to the relevant fiscal and policy committees of the Legislature.