BILL ANALYSIS AB 3014 Date of Hearing: May 2, 1994 ASSEMBLY COMMITTEE ON TRANSPORTATION RICHARD KATZ, Chair AB 3014 (Seastrand) - As Amended: April 4, 1994 SUBJECT California Spaceport Authority DIGEST Existing law: 1) Designates the Western Commercial Space Center (WCSC), a non-profit š corporation, as the California Spaceport Authority to provide support for the development of commercial space flight activities. 2) Recognizes the WCSC as an eligible recipient for grants and loans for š the purposes of planning, developing and operating commercial space launch facilities at Vandenberg Air Force Base and for promoting business opportunities in the space field. 3) Requires that the California Spaceport Authority be the recipient of š federal grants for space related studies, services, infrastructure improvements and modernization, and defense transition programs to the extent permitted by federal law. 4) Creates the Spaceport Office within the Department of Transportation š (Caltrans), and establishes that the primary responsibility of the office is to seek federal funding for the commercialization of private space activities in California. 5) Requires the Spaceport Office to work with the WCSC and any other š corporations or consortia to develop grant proposals and other requests for federal and private funds to support commercial space programs in California, and requires the Spaceport Office to receive, evaluate and give consideration to the requests submitted by those corporations and consortia. 6) Pursuant to the California Defense Conversion Act of 1993, creates the š Defense Conversion Council, provides for designation of regional technology alliances, and authorizes the council, generally, to coordinate the state's defense conversion activities, and the regional alliances to implement those activities. - continued - AB 3014 Page 1 AB 3014 This bill: 1) Requires the California Spaceport Authority/WCSC to be designated as š the primary advocate in support of commercial space business by state agencies and commissions (instead of the Defense Conversion Council and regional technology alliances). 2) Requires the California Spaceport Authority/WCSC to define and promote š regulatory reductions that will enhance the development of commercial space business, and to provide information regarding the economic impact of commercial space business to the Legislature and other regulatory agencies. 3) Requires the California Spaceport Authority/WCSC to coordinate with š regional technology alliances to achieve optimum utilization of federal and state grant funds for the development of commercial space business. 4) Requires the California Spaceport Authority/WCSC to evaluate the š benefits of establishing a Central Coast Regional Technology Alliance around a commercial spaceport being built at Vandenberg Air Force Base and report its recommendations to the California Defense Conversion Council. FISCAL EFFECT None known. COMMENTS 1) According to the author, this measure was introduced to further define š the functions and expectations of the Western Commercial Space Center. 2) AB 279 (Seastrand), Chapter 1003, Statutes of 1993, designated the WCSC š as the California Space Authority, and established the broad role of the authority to support a wide range of activities intended to encourage commercial space business in California. 3) AB 485 (O'Connell), Chapter 1005, Statutes of 1993, created the š Spaceport Office in Caltrans, directed the office to work with other corporations and consortia toward obtaining grant funds for commercial space programs, and recognized the WCSC as eligible to receive grant funds to develop commercial space programs at Vandenberg Air Force Base. 4) The WCSC, therefore, was apparently intended to function as an industry š association, supporting efforts to develop Vandenberg AFB as a commercial launch facility, and otherwise assisting the private sector to access government grant funds. Subsequently, the WCSC has created a for-profit subsidiary, the California Commercial Spaceport, Inc., placing it in direct competition with other private firms seeking assistance and funding. It is unclear how the WCSC and its for-profit subsidiary can be the designated recipient of all š - continued - AB 3014 Page 2 AB 3014 government funds and still act on behalf of other for-profit entities šthroughout California. 5) This bill would further confuse these roles by giving the š authority/WCSC pre-eminence over all state agencies and commissions in advocating for funding for commercial space activities, and calling for the authority/WCSC to coordinate activities by all regional technology alliances throughout the state. 6) The Defense Conversion Council has the primary responsibility to š coordinate the state's activities in seeking federal funds for defense conversion. This bill would give that responsibility to the authority for seeking funds for commercial space activities, essentially dividing what was intended to be a consolidation of the state's efforts to seek federal funding. 7) The bill also requires the authority/WCSC, a non-profit 501(c)(3) š corporation, to be the primary advocate for funding, and to promote regulatory reductions throughout the state that affect the creation of commercial space business. By law, non-profit corporations are prohibited from political lobbying activities. 8) The state's Spaceport Office is charged with working with the center š and any other corporation or consortia to develop grant applications, bids or proposals for funding commercial space programs in California. This bill would give the authority/WCSC similar authority, creating an even greater conflict of interest in the competition for funding. 9) Suggested Committee Amendments: The Committee may wish to amend the š bill to do the following: a) Define the role of the WCSC as an industry support organization with primary responsibility for education and promotion of commercial space activities in California, and specify that the WCSC is authorized to receive, to extent permitted by federal law, grants for those purposes. b) Require the Space Authority to coordinate its efforts through the California Defense Conversion Council. c) Delete those provisions of the bill which direct the authority to undertake lobbying activities which are prohibited for 501(c)(3) corporations. d) Clarify that any private or public applicant may receive federal grant funds if eligible under federal law. - continued - AB 3014 Page 3 AB 3014 SUPPORT California Manufacturers Association OPPOSITION Unknown John Stevens AB 3014 445-1616 Page 4 5/2/94:atrans