The following are minutes from the morning Governor’s Office Meetings at the California State Capitol, which took place as part of 2013 LBA LEGISLATIVE DAY in SACRAMENTO, Wednesday, May 15, 2013:

9:30 AM- Marty Morgenstern- Secretary- State of California Labor and Workforce Development Agency (LWDA)

  • Statewide unemployment steadily doing down; now close to 9%
  • California owes the federal government $10 billion in Unemployment Insurance Money, paying $340 million annually in interest alone
  • Plan is to infuse the state’s business community to pay that money back
  • Workplace OSHA reforms- lower cost of worker’s compensation- $740 million in benefits for workers
  • Workforce Investment Board & Training Panel creating jobs through training
  • Provide “School to Work” training and improve tracking of same
  • Reorganization of WIB & Training BOD- spend more on training. New appointee Mike Rossi, former Bank of America president, now running board
  • Gov. Brown’s Letter on Immigration to entire delegation, urging prompt support of immigration reform; foreign-born citizens are more likely to start businsses

Mr. Brian McMann- California Employment Training Panel (ETP):

  • ETP nearly 30 years in existence- Training of unemployed. Employer-based program, whereby employers contribute 1/10th of 1 precent towards cost of training
  • $80-90 million and 100 projects per year involving Community Colleges, Chambers of Commerce and other community-based organizations marketing to local employers on “fixed-fee basis”
  • For every hour of training a worker receives, employer receives $22-26 compensation, after a required 90-day retention period for 100% compensation
  • tangible job placement
  • “Multiple Contract Structures”
  • Fast-trac system for employers with fewer than 100 employees
  • How to apply (employers): submit preliminary application to and you will be contacted by an ETP representative
  • Monitor-assisted traing, tracking, etc. New data base beiing formed, available in next 12 months
  • Marketing & Outreach team available for onsite assistance

(Mr. Morgenstern):

  • WIB & EDD people are now in attendance at LWDA BOD meetings
  • Workforce Investment= federal money; ETB= state money; working to make a seemless effort between them

10:00 AM- Ms. Anna Caballero- Secretary State and Consumer Services Agency (SCSA)

(Background: from Arizona; Attorney; Salinas City Council Member and Mayor; and legislator, particularly with water-related issues)

Governor’s vision:

  • Improve efficiency (of state agencies/programs) streamlining; reducing red tape; and consolidation. Down-sizing/”right-sizing”
  • Transition from manual to electronic systems
  • Reduction (in state boards and commissions) from 16 down to 12 (with one transferring to HR)
  • Recommend DGS- Department of General Services Small Business Services’ Angel Carrera, with a procurement budget $83 billion/year
  • DBE “First” Program (about 1 year old)- pilot project/autosystem expediting contracts below $250K
  • $2.4 billion Small Business; minimum 3% DBE- Disabled Business Enterprises
  • Reciprocity with other certifying agencies towards goal of 25% spend to SBE’s and minimum 3% to DBE’s

10:30 AM- Mr. John Hanna- General Counsel Department of Corporations (CORP)

Background: Top lawyer in CORP, with 41 lawyers in agency

  • CORP seeks certainty/uniformity in laws and regulations, making them simple and clear
  • 8 lawyers in Securities Regulation Division
  • everyday duty council available for customer service and to answer questions
  • pursue fraud; “go after bad guys”
  • partner with DA’s- Districts Attorney- and Attornies General, and occassionally with federal agencies CFPB
  • As of July 1st, 2013, merging with Department Financial Institute
  • Dept. of Business Oversight (or Department of Financial Services) saving $1 million to business community (savings on licenses)

Question from LBA Chairman Ruben Guerra (re: Texas, and KTLK’s David Cruz Show radio program “Not a Good Thing for California Business to Move”): “Are there incentives for businesses to come to California?

Answer: GoBiz rep with authority to charter cities with their own constitutions and authority. California has the people (e.g. with educational background), educational infrastructure and ethnic diversity. California is usually ahead of curves/trends. Governor’s achievements: dreamers to have access to scholarships and state aid, which includes undocumented people; Prop. 30

11:15 AM- Ms. Mona Pasquil- Secretary of Appointments Office of Governor Edmund G. Brown Jr.

Opening comment from LBA Chairman Ruben Guerra on lack of Latino Appointments.

  • Of 1700 total appointments, they are about one/third the way through
  • (in evaluating candidates) “Governor asks questions”, e.g. “What is this board? Is it necessary (or is it duplicating what we already have)?; How is their track record/what does the public say? What voice is missing?
  • Candidates are proposed/considered. “Mozaic” facet then considered.

11:45 AM- Ms. Panorea Avdis- Chief Deputy Director Office of Business & Economic Development

  • Permit assistance
  • CAL (BOLD)
  • CAL GoBiz- state incentives/state agencies expanding
  • International (new China office) through AB 2012 to work with nonprofits for innovation and entrepreneurship
  • federal funds through Department of Energy for advanced technology
  • Governor’s bill to modernize Enterprise Zones: hiring tax credits; sales tax exempt on manufacturers of equipment; GoBiz credit

12:15 PM- Mr. Brian Kelley- Acting Secretary Business, Transportation & Housing Agency (BTH)

  • BTH is 12 different departments; 1 bank; Housing Financing Authority, etc.; 50 different boards and commissions
  • proposals to streamline agency; create cabinet level state agency for transportation to be STA- State Transportation Agency with seven departments
  • Will add High-Speed Rail; large ships; Office of Traffic Safety for grants
  • California has largest and most complex transportation system in the nation
  • 3 of 5 of the world’s busiest ports are in California
  • 3 of 5 of the world’s busiest rail routes are in California
  • High-Speed Rail- with strong small business outreach effort- intiating through Central Valley and later through Northern and Southern California
  • SB 75 Land Use for fall 2013

Comment from LBA Chairman Ruben Guerra: LBA has representation on CalTrans and High-Speed Rail Boards.

High-Speed Rail Timeline:

  • Late 2013- Start of construction in Central Valley
  • 2018- (Completion of) Central Valley (segment)
  • 2022- (Completion of) Palmdale (segment)
  • Later through Tehachapis (SF to LA)
  • 2026- Scheduled completion of entire system