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SB-1136 Technology.(1999-2000)

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Senate Bill No. 1136
CHAPTER 1056

An act to amend Sections 15310, 15311, 15313, 15325, and 15363.6 of, to add Sections 15310.1, 15329, 15333.10, and 15333.11 to, and to add Article 3.9 (commencing with Section 15348) to Chapter 1 of Part 6.7 of Division 3 of Title 2 of, the Government Code, and to add Section 22553.2 to, and to repeal Section 22002.5 of, the Public Utilities Code, relating to technology.

[ Filed with Secretary of State  September 30, 2000. Approved by Governor  September 30, 2000. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1136, Vasconcellos. Technology.
(1) Existing law establishes the Trade and Commerce Agency and describes the duties of the Secretary of Trade and Commerce. Existing law establishes various offices and programs within the Trade and Commerce Agency, including the Competitive Technology Advisory Committee.
This bill would rename the Trade and Commerce Agency the Technology, Trade, and Commerce Agency, and establish additional duties for its secretary. It would also, among other things, establish the Division of Science, Technology, and Innovation within the Technology, Trade, and Commerce Agency to administer specified existing offices and programs, would provide that the division is under the supervision of a Deputy Secretary of Science, Technology, and Innovation, and would specify his or her duties. The bill would repeal the Competitive Technology Advisory Committee and would establish the California Research and Development Council and the Small Business Competitiveness Council, as specified.
(2) Existing law provides for various programs for the development of spaceport capacity in the state, and authorizes the existence of the California Spaceport Authority in this regard.
This bill would require the authority to designate spaceports based upon applications by various entities, including special districts, and would define various terms for this purpose.
(3) Existing law sets forth the authority and duties of airport districts in developing airports and air navigation facilities. Existing law, to take effect January 1, 2001, authorizes airport districts to provide and maintain spaceports and landing places for space reentry traffic, and defines various terms for this purpose.
This bill would specify that an airport district may not exercise authority for the development of spaceports unless it has been designated as a spaceport by the California Spaceport Authority.

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California is the world’s leader in advancing cutting-edge science and technology and in creating new technology enterprises, but the infrastructure that helped achieve this status will not be adequate for future growth.
(b) A recent study by the California Council on Science and Technology found that there is a need for increased partnerships between industry, academia, and government in order to expand the state’s research base upon which industry relies.
(c) The same study also found that state government science and technology research and applied application programs are uncoordinated and not leveraged together to provide services to industry in a flexible, agile, and targeted way and called for a more strategic focus of state research and development programs and tax incentives.
(d) Private foundation funding is very important to basic and applied research. The state has not developed a way to help top researchers position themselves to receive these funds.
(e) The amount of state research and development funding is not tracked or coordinated in a way that increases the state’s technology competitive advantage.
(f) Although California is the world leader in venture capital investments, there is a need to develop other early-stage funding methods for selected technology areas and small startup companies.
(g) The California Research Bureau, in its profile of California computer and Internet users, has found that there is, indeed, a significant “digital divide” between various groups within the state based on income, educational level, age, race, and ethnicity. This digital divide is isolating those without computer equipment and skills from participation in the new global economy. The report also found that the Hispanic community, while being one of the fastest growing groups in California, is lagging behind other groups.

SEC. 2.

 It is the intent of the Legislature in enacting this act to provide for all of the following:
(a) Establishment of a position for a high-level, high-visibility state official responsible for overall development and articulation of state policies and programs that support “new technology” as the underpinning of California’s economic growth.
(b) Addressing the “digital divide” issue by encouraging broader access to technology and more equity in sharing in the benefits of technology for all Californians.
(c) Coordination of disparate high-technology programs throughout state government.
(d) Creation of financial incentives for private sector participation in access to technology and technology programs.
(e) Maximization of participation of California industries and universities in federal research and development activities, including accessing grant programs.
(f) Implementation of a strategic planning process within state government that will ensure that research and development funding allocation decisions are based on economic considerations.
(g) State leadership to encourage industry to continue and expand support of university-based research and development.
(h) Development of plans and programs for improving access to capital for technology-based entrepreneurs.

SEC. 3.

 Section 15310 of the Government Code is amended to read:

15310.
 The following definitions shall apply to this part:
(a) “Agency” means the Technology, Trade, and Commerce Agency.
(b) “Secretary” means the Secretary of Technology, Trade, and Commerce.

SEC. 4.

 Section 15310.1 is added to the Government Code, to read:

15310.1.
 Whenever the term “Trade and Commerce Agency” appears in any law, it means the “Technology, Trade, and Commerce Agency,” and whenever the term “Secretary of the Trade and Commerce Agency” appears in any law, it means the “Secretary of Technology, Trade, and Commerce.”

SEC. 5.

 Section 15311 of the Government Code is amended to read:

15311.
 The Technology, Trade, and Commerce Agency is administered by the Secretary of Technology, Trade, and Commerce who shall be appointed by the Governor with the advice and consent of the Senate, and who shall be paid a salary at the amount prescribed under Section 11550.

SEC. 6.

 Section 15313 of the Government Code is amended to read:

15313.
 It is the intent of the Legislature in enacting this chapter that the duties of the Business, Transportation and Housing Agency regarding the California State World Trade Commission, the Department of Commerce, and the Trade and Commerce Agency be transferred to the Technology, Trade, and Commerce Agency. Any reference in this code to duties of the Business, Transportation and Housing Agency with regard to the department, office, or Trade and Commerce Agency shall be deemed to mean the Technology, Trade, and Commerce Agency.

SEC. 7.

 Section 15325 of the Government Code is amended to read:

15325.
 The work of the agency shall be divided into at least the following:
(a) The Office of Economic Research.
(b) The Office of Local Development.
(c) The Office of Business Development.
(d) The Office of Tourism.
(e) The Office of Small Business.
(f) The Film Office.
(g) The Office of Marketing and Communications.
(h) The Office of Strategic Technology.
(i) The Office of Foreign Investment.
(j) The California State World Trade Commission, including international trade and investment offices, the Office of Export Development, and the Export Finance Office.
(k) California Field Offices.
(l) The Office of Trade Policy and Research.
(m) The Office of Permit Assistance.
(n) The Office of California-Mexico Affairs.
(o) The Office of Military Base Retention.
(p) The Division of Science, Technology, and Innovation.

SEC. 8.

 Section 15329 is added to the Government Code, to read:

15329.
 (a) There is hereby established within the Technology, Trade, and Commerce Agency the Division of Science, Technology, and Innovation. The Division of Science, Technology, and Innovation shall be under the supervision of a Deputy Secretary of Science, Technology, and Innovation who shall be appointed by, and serve at the pleasure of, the Governor.
(b) The deputy secretary’s duties shall include, but not be limited to, all of the following:
(1) Oversight of the Division of Science, Technology, and Innovation.
(2) Responsibility for identifying science and technology trends, including, but not limited to, information technology, telecommunications, and e-commerce, that are significant to the state, particularly for small businesses, and, in consultation with the Small Business Competitiveness Council, developing a state strategy to address them. This shall be coordinated with the California Economic Strategy Panel.
(3) Working closely with industry, academia, and government to encourage technology research, development, transfer, and applications to particularly meet the needs of small businesses.
(4) Working closely with the federal government to maximize participation of state industries, small businesses, national laboratories, and universities in technology research, and in obtaining research and development funding.
(5) Working closely with private foundations to maximize participation of state industries, small businesses, national laboratories, and universities, including the University of California, the California State University, and private universities, in technology research and engineering, and in obtaining research and development funding.
(6) In consultation with the California Research and Funding Council, evaluating proposals for, and making recommendations on, the coordination, consolidation, or relocation of research and development programs throughout state government.
(7) Developing plans and implementing programs for improving access to early-stage capital investment, particularly for technology-based small businesses in the state.
(8) Coordinating state science and technology policies and programs.
(9) Participating in the development and management of the Small Business Development Center program.
(10) Developing and administering grant and matching grant programs that provide funding to appropriate public and private entities for increased access to digital technology for all citizens of the state.
(c) Notwithstanding any other provision of law, the Division of Science, Technology, and Innovation shall administer all programs established pursuant to Section 15333.2, the California Space and Technology Alliance established pursuant to Section 15333.3, the Highway to Space Program established pursuant to Section 15333.4, the Office of Strategic Technology established pursuant to Section 15333.5, the Competitive Technology Advisory Committee established pursuant to former Section 15333.6, the California Research and Funding Council established pursuant to Section 15333.10, the Small Business Competitiveness Council established pursuant to Section 15333.11, the Regional Technology Alliances established pursuant to Section 15379.2, the Challenge Grant Program established pursuant to Section 15379.3, the Technology Planning Program established pursuant to Section 15379.14, and the Manufacturing Technology Program established pursuant to Section 15379.15.
(d) For purposes of this section, the following definitions shall apply:
(1) “Information technology” includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications that include voice, video, and data communications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines.
(2) “Technology” includes, but is not limited to, the application of science and engineering to research and development, especially for industrial or commercial objectives, in sectors that include telecommunications, information technologies, electronics, biochemistry, medicine, agriculture, transportation, space, and aerospace.

SEC. 9.

 Section 15333.6 of the Government Code is repealed.

SEC. 10.

 Section 15333.10 is added to the Government Code, to read:

15333.10.
 The California Research and Development Council is hereby established in the Division of Science, Technology, and Innovation to advise the deputy secretary on the role that government is playing in supporting California research and development activities, the role of research and development tax incentives, and related incentives, and to make recommendations on how government funding can be effectively coordinated, and used to leverage California’s research and development competitiveness.

SEC. 11.

 Section 15333.11 is added to the Government Code, to read:

15333.11.
 The Small Business Competitiveness Council is established in the Division of Science, Technology, and Innovation to advise the deputy secretary on how technology can improve the competitive advantage of small businesses and manufacturers by identifying industry driven vocational education, training, and technical assistance priorities, and developing a collaborative strategy with higher education and manufacturing technology centers, small business development centers, community college applied technology centers, trade centers, and other services to meet these needs, and a means to determine if the priorities are being met by the respective programs.

SEC. 12.

 Article 3.9 (commencing with Section 15348) is added to Chapter 1 of Part 6.7 of Division 3 of Title 2 of the Government Code, to read:
Article  3.9. Designation of Spaceports

15348.
 For purposes of this article, the following definitions apply:
(a) “Agency” means the Technology, Trade, and Commerce Agency.
(b) “Authority” means the California Spaceport Authority.
(c) “Date of designation” means the date that the spaceport receives designation by the authority pursuant to Section 15348.5.
(d) “Governing body” means the governing body of a city, county, city and county, special district, or joint powers authority, as appropriate.
(e) “Launch” means to place or attempt to place a launch vehicle into a ballistic, suborbital, or orbital trajectory, into Earth orbit in outer space, or otherwise into outer space. It is also a means of placing a commercial, civil, or military payload into Earth orbit or beyond. It includes all activities involved in the preparation of a launch vehicle for flight, including all processing, servicing, and support activities that take place at a launch site or at a California mission control support site for ocean launches. A “launch” begins with the arrival of the launch vehicle or payload at the launch site.
(f) “Launch site” means a location from which a space launch or operation directly associated with a space launch takes place, a location at which a launch vehicle or its payload, if any, is intended to land, or as defined in the Commercial Space Launch Act (49 U.S.C.A. Sec. 70101 and following). The site includes any right-of-way directly associated with the space launch or reentry operations and all facilities and support infrastructure related to launch, reentry, or payload processing.
(g) “Launch vehicle” means a vehicle specifically designed and built to operate in or place a payload in the upper atmosphere or outer space. “Launch vehicles” include, but are not limited to, expendable space launch vehicles and reusable launch vehicles.
(h) “Operation of a launch site” means the conduct of approved safety operations at a launch site to support the launching of vehicles and payloads.
(i) “Operation of a reentry site” means the conduct of safety operations at a fixed site on Earth at which a reentry vehicle and its payload, if any, is intended to land.
(j) “Payload” means an object, including, but not limited to, a satellite that a licensed launch site undertakes to place into outer space by means of a launch vehicle, including components of the vehicle specifically designed or adopted to support that activity.
(k) “Person” means any individual and any corporation, partnership, joint venture, association, or other entity organized or existing under the laws of any state or nation.
(l) “Reentry” means the return of any launch vehicle that has been placed in a ballistic, suborbital, or orbital trajectory, and its payload, if any, to the Earth. “Reentry” includes all activities involved in the postflight ground operations. A “reentry” ends when a launch vehicle or payload, if any, has completed its descent to Earth and is retrieved.
(m) “Reentry site” means the location on Earth at which a reentry is intended to occur, as defined in a license issued or transferred by the United States Secretary of Transportation, and any necessary support infrastructure related to reentry or payload recovery.
(n) “Reusable launch vehicle” means a vehicle that is designed to launch into an orbital or suborbital trajectory, into Earth orbit in outer space, or otherwise into outer space, that returns to Earth and is reused for a subsequent future launch.
(o) “Spaceport” means an entity that has been designated pursuant to Section 15348.5.

15348.5.
 (a) The California Spaceport Authority shall designate spaceports for the operation of launch sites, as defined in subdivision (f) of Section 15348, or reentry sites, as defined in subdivision (m) of that section.
(b) Any city, county, city and county, special district, joint powers authority, or private entity, as appropriate, may apply to the authority for designation as a spaceport.
(c) (1) The application described in subdivision (b) shall require at least the following information to be submitted to the authority:
(A) A written notice of intent to apply for a federal launch site operator’s license from the United States Secretary of Transportation under the authority of the Commercial Space Launch Act (49 U.S.C.A. Sec. 70101 and following), to be received by the authority no later than 60 days prior to the submission of the application to the United States Secretary of Transportation.
(B) A copy of the perfected application submitted to the United States Secretary of Transportation for a federal launch site operator’s license.
(C) A written notice of acceptance or denial by the United States Secretary of Transportation for a federal launch site operator’s license. If acceptance is granted, a copy of the license shall be included in the written notice.
(2) This subdivision shall not apply to any launch site operator who is federally licensed on or before January 1, 2001.
(d) The authority shall withdraw spaceport designation upon receipt of notice from the Federal Aviation Administration that the launch site operator of the spaceport no longer meets safety requirements or that safety deficiencies in the spaceport have remained uncorrected for a reasonable period of time after being identified.

SEC. 13.

 Section 15363.6 of the Government Code is amended to read:

15363.6.
 The secretary shall have the following responsibilities:
(a) Coordinating the various trade, investment, and tourism activities of the Technology, Trade, and Commerce Agency to ensure that the resources that the state has invested in these programs are used effectively and efficiently and that they foster the state’s reputation as a source of high quality, cost-effective goods and services including tourism destinations.
(b) Coordinating, on behalf of the Governor, the use of the overseas trade offices by any state export program not under the California State World Trade Commission, such as those that are operated by the Department of Food and Agriculture and the California Energy Commission, and by any state agency which may have occasion to need the services of the overseas trade offices in carrying out that agency’s official duties and responsibilities.
(c) Reporting to the Governor and the Legislature on an annual basis about the policies, plans, budgeting, and accomplishments of the agency and its programs.
(d) In his or her capacity as a member of the Governor’s cabinet, coordinating the development of a state policy on economic development and trade, and advising the Governor and members of the cabinet of the potential impacts of regulations on the state’s business, economy, and job base. The initial policy and implementation strategy shall be included as a part of the secretary’s first annual report to the Governor and the Legislature following enactment of this chapter. Each year thereafter, the secretary’s annual report shall discuss economic development and trade policies including accomplishments and needed modifications.
(e) Evaluating, at his or her discretion, the findings and determinations required of any state agency which proposes to adopt regulations under Article 5 (commencing with Section 11346) of Chapter 3.5 of Part 1, including economic and cost impacts, reporting requirements, and alternatives analyses. The secretary shall, during the written comment period specified pursuant to paragraph (9) of subdivision (a) of Section 11346.5, submit written comments into the record of the agency which proposes to adopt those regulations in those instances when the secretary determines that the contents of the notice of the proposed action or the supporting analysis and initial statement of reasons do not sufficiently support the findings and determinations of the agency. The secretary may, at his or her discretion, comment on other aspects of the proposed action that significantly impact the state’s business, industry, economy, or job base, including the cumulative effects of the proposed action that significantly impact the state’s business, industry, economy, or job base, including the cumulative impacts of the proposed action considered along with regulatory requirements in place at the federal, state, and local levels.
(f) Identifying science and technology trends that are significant to the state and developing a state strategy to address them.
(g) Developing a state strategy for applying and commercializing technology to create jobs, respond to industry changes, and foster innovation and competitiveness.
(h) Coordinating state science and technology policies and programs.
(i) Consulting frequently with the California Council on Science and Technology. The secretary may, as deemed appropriate and necessary, request specific studies and reports from the council.

SEC. 14.

 Section 22002.5 of the Public Utilities Code, as added by Chapter 191 of the Statutes of 2000, is repealed.

SEC. 15.

 Section 22553.2 is added to the Public Utilities Code, to read:

22553.2.
 No district may exercise any of the authority granted under this part for the development of spaceports unless it has been designated as a spaceport pursuant to Section 15348.5 of the Government Code.