Bill
AB 940
AB 940: Economic Development - Industry Strategies SummaryMain Purpose:AB 940 aims to enhance California's economic development efforts by requiring the Governor's Office of Busine
Main Purpose:
AB 940 aims to enhance California's economic development efforts by requiring the Governor's Office of Business and Economic Development (GO-Biz) to develop and implement targeted industry strategies. The goal is to support high-priority industries that are critical to the state's economic growth and competitiveness.
Key Provisions:
- Mandates GO-Biz to identify up to 10 key industry sectors for focused economic development strategies.
- Requires GO-Biz to work with industry stakeholders to develop 5-year strategic plans for each priority sector, addressing workforce needs, innovation, infrastructure, and other critical factors.
- Establishes the Industry Strategies Fund to provide grants and other financial assistance to implement the strategic plans.
- Directs GO-Biz to coordinate with other state agencies to align programs and funding to support the industry strategies.
- Calls for annual reporting to the Legislature on the development and outcomes of the industry strategies.
Affected Parties:
- The Governor's Office of Business and Economic Development (GO-Biz), which will lead the industry strategy development and implementation.
- Businesses, industry groups, and other stakeholders in the priority industry sectors, who will participate in strategy development.
- State agencies whose programs and funding can support the industry strategies.
- Local economic development organizations that work to attract and retain businesses in the target industries.
- Workers and job-seekers in the priority industries, who may benefit from workforce development efforts.
Timeline and Implementation:
- AB 940 was signed into law in September 2025 and takes effect immediately.
- GO-Biz must identify the initial set of priority industry sectors within 6 months of the law's effective date.
- The first 5-year strategic plans for the priority industries must be completed and submitted to the Legislature within 18 months.
- Ongoing implementation and annual reporting to the Legislature is required to track the progress and outcomes of the industry strategies.
Compiled from official sources — confirm details with the bill’s official record.
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