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AB-2596 California Economic Development Strategic Action Plan.(2017-2018)

Current Version: 08/29/18 - Enrolled Compare Versions information image


Enrolled  August 29, 2018
Passed  IN  Senate  August 23, 2018
Passed  IN  Assembly  August 28, 2018
Amended  IN  Senate  August 17, 2018
Amended  IN  Assembly  May 25, 2018
Amended  IN  Assembly  April 26, 2018


Assembly Bill
No. 2596

Introduced by Assembly Members Cooley, Kiley, and Quirk-Silva
(Principal coauthors: Assembly Members Cervantes, Eduardo Garcia, and Steinorth)
(Coauthor: Assembly Member Cooper)

February 15, 2018

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


AB 2596, 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 office to lead the preparation of a California Economic Development Strategic Action Plan, as specified, to commission a study to identify and evaluate economic development issues, and to create a comprehensive agenda and framework for inclusive statewide and regional economic growth. The bill would authorize the office to accept nonstate moneys for the purposes of commissioning the study and developing the action plan. The bill would require the deposit of private sector donations into the Economic Action Plan Account, which the bill would establish in the California Economic Development Fund.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


 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. 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. Future success will require highly refined public policies that help industries, institutions, and individuals adapt and thrive.
(3) California’s commitment to reduce greenhouse gas emissions, to restore ecosystems, and to improve environmental health that requires the skillful integration of regulations and other policies that shape natural resource management, energy, housing, transportation, and the myriad of job-creating economic decisions.
(e) 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, including encouraging all of the following:
(1) The development within California of new technologies that yield more equitable, efficient, sustainable communities and affordable qualities of life.
(2) The rejuvenation of industrial zones, marketplaces, and community hubs to yield a greater diversity of business, employment, housing, and recreational opportunities for current and future residents of all income levels.
(3) Investments that amplify and balance the unique assets of urban, suburban, and rural communities, including working landscapes and infrastructure improvements.
(f) 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 strategy should incorporate mechanisms for assessing and improving the public policies and investments according to triple-bottom-line metrics, affirming and reaffirming California’s commitment to a more inclusive, more sustainable, and more resilient economy.

SEC. 2.

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

 (a) The office shall lead the preparation of a California Economic Development Strategic Action Plan. The purpose of the action plan is to create a comprehensive agenda and framework for inclusive statewide and regional economic growth.
(b) The goal of the action plan is to create a process by which the office can identify economic development challenges that confront the state and develop a plan that addresses the shifting economic landscape, changing demographics, and unique strengths of California’s industries, businesses, workers, and entrepreneurs.
(c) (1) The priorities set in the action plan shall be consistent with a current State Environmental Goals and Policy Report, developed pursuant to Section 65041, and used to guide the development and recommended actions of related state functional plans and strategies of state agencies, boards, and commissions.
(2) The office shall advocate for the alignment of priorities and recommendations for the purpose of increasing the state’s overall national and international competitiveness, to support regional priorities, and lead the state toward an inclusive economic growth agenda.
(d) The action plan shall cover a five-year period, with a review every two years, and the office shall revise the action plan, if the office determines it to be necessary, to ensure the action plan is responsive to the changing economic landscape.
(e) In preparation for the development and update of the action plan, the office shall commission a study that includes, but is not limited to, all of the following:
(1) Identification of state agencies, departments, boards, and commissions that have economic development-related responsibilities.
(2) An evaluation and identification of governmental and nongovernmental impediments to economic development.
(3) Identification and an analysis of economic opportunities for underserved and high-risk populations and geographic areas.
(4) An evaluation of each region’s national and international competitiveness, including major proposals, policies, and goals, and of the effectiveness of state programs supporting regional needs.
(5) An evaluation of the strengths and weaknesses of the California economy, statewide economic development programs, and tools, and the state’s prospects for future economic prosperity, benchmarked against 10 or more competitor states and regions in the world.
(6) An evaluation of the effectiveness of California’s economic development programs in creating and retaining jobs, supporting entrepreneurship, attracting and developing advanced industries, and promoting inclusive growth.
(7) An evaluation of the adequacy of state and local infrastructure to meet current and future business needs, including goods and passenger movement and information networks. Include an analysis of current relevant funding models.
(8) An evaluation of opportunities to leverage federal resources for state priorities.
(9) An evaluation of tactics for attracting private capital to the state and investment in state priority areas.
(10) Identification of state workforce preparation and delivery systems, including workforce training programs, apprenticeships, and incumbent worker training.
(11) Identification and evaluation of impediments and support programs for small businesses and entrepreneurship, including in emerging and advanced industries.
(f) (1) The study shall also include recommendations on goals, priorities, and actions that would advance the purposes of the action plan, as provided in this section.
(2) 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.
(g) The study shall also include potential funding options for covering the cost of implementing the recommendations.
(h) (1) Nothing precludes the office from undertaking additional studies to assist in the development, review, and update of the action plan.
(2) In fulfilling the requirements of this section, the office may utilize portions of previous studies that satisfy the requirements of this section to the extent feasible, current, and topically relevant.
(i) Upon completion of the study required in subdivision (e), the office shall do the following:
(1) Post the study on the office Internet Web site and open a public comment period to obtain feedback on the assessments and recommendations in the study.
(2) Engage with and encourage stakeholders to provide feedback on the assessments and recommendations during the public comment period.
(3) Convene an advisory group consisting of 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 to assist with reviewing the study, evaluating the stakeholder comments, and preparing the California Economic Development Strategic Action Plan.
(j) In reviewing and evaluating the study required in subdivision (e) and any comments submitted pursuant to subdivision (i), the 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 competitiveness relative to other states and nations.
(4) Innovation and advanced technologies and industries.
(k) The California Economic Development Strategic 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, regulatory, and administrative initiatives to address key issues, seize opportunities, and ease impediments.
(5) Identification of key state government and nonstate public and private partners.
(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.
(l) The office, prior to action plan approval, shall seek the advice of the Legislature.
(m) (1) The office shall post the approved action plan on its Internet Web site and submit a letter providing notice of its public availability to the Legislature in the manner required pursuant to Section 9795.
(2) The first action plan shall be posted and notice received by the Legislature on or before January 10, 2020, and every five years after that date.
(3) The office shall notify the Legislature, consistent with Section 9795, each time the action plan is updated pursuant to subdivision (d).
(n) Within 120 days of submitting notice of the posting of the action plan, the office shall publish a list of performance indicators that will be used to evaluate and track the implementation of the action plan. The list 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 benchmarks and timelines for the industry-driven recommendations.
(o) (1) The biennial review pursuant to subdivision (d) shall evaluate the action plan compared to 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.
(2) The biennial review pursuant to subdivision (d) shall include a progress report and identify the next steps toward implementation of the action plan or revised action plan, as appropriate.
(p) (1) The commission of the study and development and update of the California Economic Development Strategic 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 the study and developing the California Economic Development Strategic Action Plan, upon appropriation by the Legislature. A donor shall not donate more than 25 percent of funding for the California Economic Development Strategic Action Plan. The private sector moneys shall be deposited in the Economic Action Plan Account, which is hereby created in the California Economic Development Fund.
(3) For each donation that it receives to fund the California Economic Development Strategic Action Plan for this purpose, the office 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, and the date the donation was made.
(q) 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.