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Changes in Government to Support Industrial Innovation

Government actions can take many forms including setting tax policy, administering financing programs, and educating and training workers.  Testimony from hearings held by the Assembly Committee on Jobs, Economic Development and the Economy, has consistently included comments on the need for state government to set a more hospitable environment for businesses to start-up and grow.  For companies in industries that depend on the use of new and evolving technologies, is government setting regulatory standards. 

Below is a selection of legislation from the last three sessions, which were designed to provide an administrative and legislative structure within state government that is more conducive to supporting private sector innovation.   

AB 29 (John A. Pérez, Mike Feuer and V. Manuel Pérez) Office of Business and Economic Development:  This bill establishes the Governor's Office of Business and Economic Development (GO-BIZ), which would be administered by a director appointed by the Governor. The bill would also move the Office of Small Business Advocate to the Office of Economic Development.  Status:  Signed by the Governor, Chapter 475, Statutes of 2011.

AB 1037 (V. Manuel Pérez) - Small Business Regulatory Reform:  This bill would have removed statutory barriers that inhibit the full consideration of the impacts of state rules and regulations on the economy, including the small business sector, and requires a review of all regulations on small businesses after five years to identify opportunities to mitigate negative impacts.  Status:  The bill was held on the Suspense File of the Assembly Committee on Appropriations.

AB 1409 (V. Manuel Pérez) Small Business Regulation Reform:  This bill modifies the state rulemaking process to require state agencies to consider alternative small business compliance mechanisms.  Rulemaking agencies would also be required to consider whether there are opportunities to coordinate or harmonize compliance activities with other state entities with similar or related rules.  Further, the bill encourages the Small Business Advocate to solicit comments from small businesses on proposed regulations and make recommendations on reasonable alternatives as part of the rulemaking process.   Status:  The bill is pending in the Senate Committee on Rules.

AB 1620 (Arambula) California Clean Technology Services Unit:  This bill would have established the California Clean Technology Services Unit within the Business, Transportation, and Housing Agency to promote the development of environmentally-friendly technologies, help businesses bring clean technology to California, and coordinate efforts between state agencies that encourage clean technology development that meets the state's environmental goals and standards.  The provisions of this bill sunset on January 1, 2013.  Status:  The bill was held under submission in the Senate Committee on Environmental Quality, 2007.

AB 1646 (Campos) California Demonstration of Emerging Market Opportunities Act:  This bill establishes the California Demonstration of Emerging Market Opportunities Program, administered through the Governor's Office of Business and Economic Development, for the purposes of facilitating public/private partnerships and other opportunities for businesses and nonprofit organizations to test, evaluate, or demonstrate innovative products and services.  Status:  The bill is pending in the Senate Appropriations Committee.

AB 2012 (John A. Pérez) Governor's Office of Business and Economic DevelopmentThis bill restructures the state's international trade and foreign relations duties by transferring authority from the Business, Transportation and Housing Agency to the Governor's Office of Business and Economic Development where these activities can better serve the needs of the California business community.  Status:  The bill is pending in the Senate Appropriations Committee.

AB 2135 (Blumenfield) Locating Distributed Generation Technology: This bill authorizes the adoption of building standards for solar distributed generation technology on residential and commercial property under the rules approved for emergencies.  Expediting the ability of businesses and consumers to utilize distributed generation technology supports an important emerging industry subsection.  Status:  The bill is in the Senate Governmental Organization Committee.

AB 2711 (Portantino) State Innovation and Technology Strategy:  This bill would have required the Secretary of the Business, Transportation and Housing Agency to develop a comprehensive state technology and innovation strategy to guide future state expenditures and activities.  Status:  The bill was held under submission in the Assembly Committee on Appropriations, 2008.

AJR 32 (Karnette) Federal Military Contracts and California Manufacturing Facilities:  This resolution memorializes California's support for the production of the C-17 transport aircraft and pledges the state's support for ongoing efforts to secure commitments from the President, Congress, and the military for funding that would continue the production of that aircraft.  Support for continued production of the C-17 transport aircraft is based on the importance of the aircraft to the security of the nation and the negative impact that ending production would have on the economy of the nation, the state, and the Southern California region.   Status:  The resolution was approved by the Assembly and the Senate, Resolution Chapter 152, Statutes of 2007.

SB 16 (Rubio) - Renewable Energy and Expedited Permitting:  This bill requires the Department of Fish and Game to take steps to expedite the processing of renewable energy permits.  Status:  The bill was signed by the Governor, Chapter 311, Statutes of 2011.

SB 617 (Calderon) - State Government and Financial and Administrative Accountability:  This bill revises the state Administrative Procedure Act to require each state agency adopting a major regulation to prepare an economic impact analysis and requires state agencies to implement ongoing monitoring of internal auditing and financial controls and other best practices in financial accounting.  Status:  The bill was signed by the Governor, Chapter 496, Statutes of 2011.

SB 861 (Corbett) - Public Contracts and Conflict Minerals in the Democratic Republic of the Congo:  This bill prohibits a company that (1) uses conflict minerals from the Democratic Republic of Congo and (2) is found to be in violation of related disclosure laws by the Securities and Exchange Commission, from bidding on a state goods or services contract.  Status:  Signed by the Governor, Chapter 715, Statutes of 2011.

SB 959 (Ducheny) Office of Permit AssistanceThis bill would have reestablished the Office of Permit Assistance under the Governor's Office of Planning and Research to help facilitate state and local review of commercial and industrial development projects.  Status:  The bill was vetoed by the Governor, 2010.

SB 1099 (Wright) Streamline Implementation of Regulations:  The bill requires new regulations to take effective on one of four dates in any given year.  This limitation is designed to create a regulatory environment that is more predictable. In addition, the bill requires regulations to be posted on the internet Web site in an easily identifiable location and maintain the regulation of the Web site for at least six months from the date the regulation is filed with the SOS.  Status:  The bill is pending in the Assembly Committee on Appropriations.   

SB 1550 (Florez) Climate Risk Disclosure Standard:  This bill would have required the establishment of a voluntary, investor-driven climate change disclosure standard to guide disclosures made by publicly listed companies that operate within California.  In establishing this standard and opportunity for publicly listed companies to disclosure their climate risk, California is enhancing its competitive position as a state with a good business investment climate.  The standard proposed in this bill is consistent with the ongoing efforts of institutional investors to have better information on the carbon exposure of the companies in their portfolios.  Status:  The bill failed concurrence in Assembly amendments on the Senate Floor, 2008.

SB 1698 (Ashburn) Military and Aerospace Enterprise Development:  This bill extends the sunset on the Military and Aerospace Support Act from January 1, 2007, to January 1, 2009, and expands the duties of the Office of Military and Aerospace Support to include outreach to the aerospace industry for the purpose of fostering aerospace enterprises in California.  Status: The bill was signed by the Governor, Chapter 681, Statutes of 2006.

SB 1155 (Dutton) Capital Access Companies:  This bill amends the Capital Access Company Law, by changing the definition of a small business and adding a definition for a smaller business; exempting Capital Access Companies from the Corporate Securities Law of 1968; exempting businesses from the Capital Access Company Law, if they are approved as Small Business Investment Companies by the federal Small Business Administration; replacing existing law conflict of interest provisions with conflict of interest provisions utilized by the federal Small Business Administration for its licensees; and making related changes, as specified.  Status:  The bill was signed by the Governor, Chapter 516, Statutes of 2010.

HR 29 (Houston) Joint Bio-Energy Institute:  This resolution affirms the Assembly's support of the outstanding proposal developed by the national laboratory partnership of Sandia National Laboratories, Lawrence Livermore National Laboratory, and the Lawrence Berkeley National Laboratory to bring the Joint Bio-Energy Institute to California.  Status:  The bill was approved by the Assembly, August 10, 2006.

SJR 29 (Wright) Aerospace Industry C-17 Production: This measure urges the President of the United States, the U.S. Congress, and the Department of Defense to take immediate and necessary actions to protect national security by ensuring the continuation of C-17 production to meet future domestic and international airlift needs and to preserve the crown jewel of the American industrial base.  Status:  The resolution was adopted - Resolution Chapter 138, Statutes of 2010.  

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