EXECUTIVE ORDER S-05-10


WHEREAS job creation and retention are critical to California's economic well-being and quality of life; and

WHEREAS in 2009, the United States confronted the most severe economic downturn since the Great Depression; and

WHEREAS California was especially hard hit by the global financial crisis, and while the recovery has begun, economic growth remains modest and high unemployment persists; and

WHEREAS unemployment in the State stood at 12.5 percent as of February 2010; and

WHEREAS it will take aggressive action on the part of government and the private sector to ensure that California leads the recovery; and

WHEREAS
good jobs enable Californians to achieve their potential and contribute to the economic performance of the State; and

WHEREAS California has led the world in innovation as the high-technology capital of the world, the biotechnology capital of the world, the agriculture capital of the world, the entertainment capital of the world, the aerospace capital of the world, and now the green-technology capital of the world; and

WHEREAS in 2009, venture capital investment in California led all other states, with approximately $8.9 billion of the $50 billion invested nationwide; and

WHEREAS in my State of the State Address this year, I announced a job creation package that will create or retain at least 100,000 jobs, and additional efforts are necessary to eliminate barriers in further creating jobs; and

WHEREAS I have just signed two important parts of this jobs package: a homebuyer tax credit and a sales tax exemption for companies purchasing green-technology manufacturing equipment; and

WHEREAS
people who want to do business in California must interact with the State to establish and maintain their businesses, by obtaining permits and licenses, registering their businesses, reporting required information, and paying taxes; and

WHEREAS California has at least 100 individual programs and services across 28 separate state government entities that support economic development; and

WHEREAS the American Recovery and Reinvestment Act of 2009 will provide approximately $85 billion in cash and tax benefits to Californians; and

WHEREAS state-level services and resources for California businesses are disjointed, with an uneven geographical distribution of services, no centralized entity with broad expertise, no mechanism to focus efforts and measure results, and a lack of effective coordination with other government and private sector resources; and

WHEREAS some of these services and resources reside under the authority of other constitutional officers, including the Lieutenant Governor, the Treasurer, and the Secretary of State; and

WHEREAS from a business owner's perspective, state government is not a collection of independent agencies, but rather one "state government" and therefore, business owners expect seamless services from the State; and

WHEREAS some who want to start a business in California do not know where to begin, and even some established business owners find it difficult to navigate the state bureaucracy; and

WHEREAS the State should simplify the path to the state-level resources and services that businesses need to grow and succeed in California; and

WHEREAS the California Performance Review and the Little Hoover Commission have also recognized this need for a central economic development entity, and action is needed.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power vested in me by the Constitution and statutes of the State of California, do hereby order effective immediately:

1. The Governor's Office of Economic Development is hereby created. Its purpose is to promote California as a place to do business, to support those interested in starting, growing, financing, expanding or relocating a business in California, and to help, to the extent possible, those businesses facing challenges to operating in California. The Office of Economic Development shall exist within the Governor's Office, and shall be headed by a director designated by the Governor.

2. The Office of Economic Development shall be the state's lead entity for economic development coordination with all public and private entities and shall perform the following functions:

a) Leading the State's business-oriented outreach and marketing efforts and promoting California as a place for business investment and job creation, working with private-sector, nonprofit and other government entities;
b) Creating a Web portal that will provide one-stop access to state-level information and resources for businesses;
c) Serving employers, corporate real estate executives and site location consultants who are considering California for business investment and expansion;
d) Communicating the business advantages of California locations for new business investment and expansion;
e) Providing site, workforce training and infrastructure availability and cost information;
f) Providing permit and regulatory assistance;
g) Facilitating participation in state capital financing, grants, loans, tax credits, and other incentives;
h) Supporting the State's small businesses by providing information about accessing capital, regulatory compliance, state procurement and state initiatives that support small businesses;
i) Encouraging collaboration among research institutions, start-up companies, local governments, venture capitalists and economic development organizations to promote innovation;
j) Working with the federal government to leverage economic development programs and to foster relationships with international counterparts to help address barriers to trade, find business partners and promote California's strengths; and
k) Conducting ongoing research about how California can remain on the leading edge of innovation and emerging sectors.

3. The Office of Economic Development shall be created with existing resources and shall be staffed with personnel from agencies and departments whose functions relate to economic development, including small business promotion. These agencies shall include, but not be limited to, the Labor and Workforce Development Agency, the Business, Transportation and Housing Agency, the Environmental Protection Agency, the Natural Resources Agency, the State and Consumer Services Agency, the Department of Food and Agriculture, the Office of the Chief Information Officer, and the Office of Planning and Research.

4. Each member of the Cabinet shall identify a senior manager within his or her agency to coordinate business support activities with the Office of Economic Development.

5. The Office of Economic Development shall operate a Web portal, as described above in paragraph 2(b), and shall be prepared to respond appropriately and promptly to all requests for information and assistance from businesses that need help interacting with California state government.

a) The Web portal shall provide assistance with: establishing or registering a business; license, permitting and registration requirements; tax requirements; and building codes and zoning.

b) The Office of Economic Development shall ensure all state Web sites focused on economic development and business support are user-friendly and provide accurate, updated resources.

6. The Director shall seek advice and input from local government officials, economic development agency officials, and industry leaders.

IT IS FURTHER ORDERED that the agencies and departments under my executive authority shall cooperate in the implementation of this Order. Other entities of state government not under my direct authority are requested to assist in its implementation.

This Order does not and is not intended to create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees or any other person.

I FURTHER DIRECT that as soon as hereafter possible, this Order shall be filed with the Office of the Secretary of State and that widespread publicity and notice be given to this Order.