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AB-245 California Aerospace and Aviation Commission: establishment.(2019-2020)

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Date Published: 05/17/2019 09:00 PM
AB245:v96#DOCUMENT

Amended  IN  Assembly  May 17, 2019
Amended  IN  Assembly  April 10, 2019
Amended  IN  Assembly  March 26, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 245


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

January 22, 2019


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


LEGISLATIVE COUNSEL'S DIGEST


AB 245, as amended, Muratsuchi. California Aerospace and Aviation Commission: establishment.
Existing law establishes the Governor’s Office of Business and Economic Development, 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, within the office, the California Aerospace and Aviation Commission consisting of 17 15 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 authorize the commission to engage in various other activities in undertaking its mission and responsibilities, as specified.
This bill would require the commission to have offices contained within existing operations of the office, as specified. 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 preclude any actions by the office relating to the commission until a determination is made and reported regarding the sufficiency of the funds received. The bill would require state funds, averaged over 3 years, that are allocated to the commission to be matched by nonstate funds. The bill would repeal its provisions on January 1, 2025.
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) Considered together, the aerospace and aviation industries constitute one of the largest high-technology manufacturing sectors within the United States.
(b) The aerospace and aviation industries generate a significant portion of economic output from companies that manufacture goods and provide services throughout the industry’s supply chain.
(c) Accelerated by surges in delivery of civil aircraft systems across platforms and commercial space launches, production grew in 2017 and is poised for continued growth across all sectors in 2018.
(d) 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.
(e) The California aerospace industry employs approximately 230,000 workers directly and supports 511,000 jobs across related industry sectors, including finance, construction, and transportation.
(f) 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.
(g) 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 2019.

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.
 There is in the Governor’s Office of Business and Economic Development, the California Aerospace and Aviation Commission consisting of 17 15 members. Any reference in this part to the commission shall be deemed to refer to the California Aerospace and Aviation Commission.

15377.1.
 (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 Within the annual report, as provided in subdivision (a) of Section 15382, 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 and other events designed to promote the state’s aerospace and aviation industries.
(4) Review and provide comments on reports and plans related to aerospace and aviation industries, including, but not limited to, marketing and promotional plans.
(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.

15377.2.
 (a) 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, 2021, pursuant to paragraphs (2), (4), (5), and (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 from large aerospace or aviation corporations.
(2) Two members from small- and medium-size aerospace or aviation businesses.
(3) One member from a local or regional economic development corporation.
(4) One member from a seaport that exports aerospace or aviation equipment.
(5) One member from the aerospace or aviation industry supply chain.
(6) One member from a general aviation airport. airport or commercial airport.

(7)One member with workforce development experience from an aerospace or aviation-related field.

(8)One member from a commercial airport.

(d) The members appointed by the Speaker of the Assembly shall be as follows:
(1) One member from California’s higher education system.
(2) One member who is 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 who is a representative of investment and incubators of the aerospace or aviation industry.
(2) One member who is a member or an employee of a union or guild of aerospace or aviation employees. with workforce development experience from an aerospace- or aviation-related field.
(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 the director’s behalf.
(2) The Adjutant General of the California National Guard, who may designate a representative to serve on the adjutant’s 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 the director’s 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 their duties.

15379.
 (a) The commission shall meet at least four two times per year, with the first meeting being held on or before May 1, 2021.
(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.
(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.

15379.5.
 A member of the commission, upon identifying a conflict of interest or a potential conflict of interest regarding a matter before the commission, immediately before consideration of the matter, shall do all of the following:
(a) Publicly identify the interest that gives rise to the conflict of interest or potential conflict of interest.
(b) Recuse themselves from discussing or voting on the matter.
(c) Leave the room until after the discussion, vote, and any other disposition of the matter is concluded.

15380.
 The commission may 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) Commission offices shall be contained within existing operations of the Governor’s Office of Business and Economic Development, except that the commission may use additional office and meeting space donated by a nonprofit entity.
(b) State funds, averaged over 3 three years, that are allocated to the commission shall be matched by nonstate funds. For the establishment of the commission and the initial three years, the Director of the Governor’s Office of Business and Economic Development shall set the nonstate match, based on the budget of the commission and related administrative costs.
(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) All funds deposited in the Aerospace and Aviation Account shall be under the control of the Director of the Governor’s Office of Business and Economic Development or the director’s 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 website 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) This section shall not affect any requirement of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).
(d) The Director of the Governor’s Office of Business and Economic Development shall notify the Department of Finance once the director determines that a sufficient amount of nonstate money has been deposited in the Aerospace and Aviation Account to support the operations of the commission. Activities related to the commission shall not be undertaken by the Governor’s Office of Business and Economic Development until the director makes this determination.

15382.
 (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 website within 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.

15383.
 This part shall remain in effect only until January 1, 2025, and as of that date is repealed.