Bill Text: CA AB495 | 2013-2014 | Regular Session | Amended
Bill Title: Community investment.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2014-08-14 - In committee: Held under submission. [AB495 Detail]
Download: California-2013-AB495-Amended.html
BILL NUMBER: AB 495 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2014
AMENDED IN ASSEMBLY JANUARY 23, 2014
AMENDED IN ASSEMBLY JANUARY 13, 2014
AMENDED IN ASSEMBLY JANUARY 6, 2014
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Campos
(Coauthor: Assembly Member Dickinson)
FEBRUARY 20, 2013
An act to add Article 6.5 (commencing with Section 12099.20) to
Chapter 1.6 of Part 2 of Division 3 of Title 2 to the Government
Code, relating to community investment.
LEGISLATIVE COUNSEL'S DIGEST
AB 495, as amended, Campos. Community investment.
Existing law authorizes the Governor's Office of Business and
Economic Development to, among other things, advance statewide
economic goals.
This bill would establish the California Community Investment
Program within the Governor's Office of Business and Economic
development Development . The program
would be governed by a 14 10 member
California Community Investment Council comprised of 6 citizens
appointed by the Governor, 4 members of the Legislature,
the Treasurer, the Controller, the Secretary of
the Business, Consumer Services, and Housing
Agency , and the Director of the Governor's Office of
Business and Economic Development, as specified. The bill would
also establish an advisory committee to advise the California
Community Investment Council composed solely of four members of the
Legislature, as specified.
The program would be required to create a database of low-income
neighborhoods, compile and maintain an inventory of California public
sector funding resources and financing mechanisms, coordinate public
sector financial investment and public programs to assist low-income
communities to become business, development, and investment ready,
develop criteria for triple bottom-line investment funds, establish
overall triple bottom-line goals and standardized metrics for
economic, social, and environmental outcomes to be accepted by
eligible investment funds, establish and convene regular meetings of
the California Community Investment Network comprised of
organizations and institutions with expertise and resources to advise
the California Community Investment Council and eligible investment
fund managers, and report biannually to the Legislature and the
Governor on the status and progress of the California Community
Investment Program and performance on goals and triple bottom-line
outcomes, as specified.
The bill would require the program to encourage significant
private sector commitment, cooperation, and collaboration to invest
private capital in low-income neighborhoods through eligible triple
bottom-line investment funds with the goal of obtaining, by January
1, 2019, at least $1,000,000,000 of new investment by triple
bottom-line investment funds in triple bottom-line real estate
developments and businesses located in low-income California
neighborhoods.
This
The bill would also make legislative findings and
declarations in this regard .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be cited as the
California Community Investment Program.
SEC. 2. The Legislature finds and declares all of the following:
(a) Despite having the largest state economy in the United States,
California has the highest poverty rate of any state, according to
the United States Census Bureau's new definition of poverty that
takes cost of living into consideration, with nearly a quarter of its
residents living in poverty.
(b) In this era of public budget constraints, public sector
dollars are insufficient to solve the problems of low-income
neighborhoods. Therefore, private sector market forces need to be
engaged to make substantial investments that produce a risk adjusted
market rate of return.
(c) Low-income neighborhoods constitute domestic emerging markets
with significant purchasing power and location efficiencies, but
suffer from social, public safety, broadband, and physical
infrastructure problems that contribute to market prejudices that
lead to disinvestment.
(d) To overcome these problems and market prejudices, low-income
neighborhoods need to become business, development, and
investment-ready through a partnership of government, private sector,
community, and environmental leaders focused on generating
coordinated, focused, effective human services, public safety,
broadband, workforce, education, and physical infrastructure.
(e) A new class of real estate and business developments is
emerging that actively pursues economically, socially, and
environmentally responsible outcomes. These real estate and business
developments often are the result of investments from private sector
investment funds that generate market-rate returns to investors, but
are also committed to improving economic, social, and environmental
conditions and characteristics for the existing residents in these
neighborhoods. These private sector investment mechanisms often are
referred to as "triple bottom-line" investment funds.
(f) Triple bottom-line investment funds and the real estate and
business developments resulting from them are helping to reduce
poverty and improve the social and environmental dynamics of
low-income neighborhoods. Triple bottom-line investments can be
encouraged and the benefits from them can be enhanced and accelerated
by coordinated assistance from existing State of California programs
and funding resources.
(g) Many low-income neighborhoods are at transit hubs or have the
transit and mixed-use characteristics in place to make development in
them more climate friendly than development elsewhere.
(h) The State of California should encourage responsible
businesses and real estate developments to locate and do business in
business and development-ready low-income neighborhoods in ways that
solve economic, social, and environmental problems rather than cause
them.
(i) To accomplish this, the State of California intends to
establish the California Community Investment Program to assist
low-income neighborhoods by encouraging private sector investment
consistent with the economic development and community improvement
strategies of the cities, counties, and regions where they are
located. It is the intent of the State of California that such
private sector investment is accomplished without permanent
displacement of existing residents in low-income neighborhoods.
(j) It is the intent of the Legislature that state agencies
cooperate with the California Community Investment Program to align
their resources to transform low-income neighborhoods and to attract
private investments into these neighborhoods.
SEC. 3. Article 6.5 (commencing with Section 12099.20) is added to
Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government
Code, to read:
Article 6.5. California Community Investment Program
12099.20. For the purposes of this article, the following
definitions shall apply:
(a) "Poverty" means the supplemental poverty measure, established
by the United States Census Bureau in 2013 to incorporate cost of
living in the established rate of poverty.
(b) "Triple bottom-line investment funds" include, but are not
limited to, equity and debt investment vehicles that pursue market
and above market rates of financial return while at the same time
producing living wage jobs, affordable housing, and other economic,
social, and environmental benefits for the residents of the
communities where the investments are made.
(c) "Low-income" means households whose income does not exceed 80
percent of area median income.
12099.22. (a) The California Community Investment Program is
hereby established within the Governor's Office of Business and
Economic Development.
(b) The program shall be under the direct authority of the
director.
(c) The purpose of the program is to:
(1) Encourage private sector investment in low-income
neighborhoods to improve the economic, environmental, and social
conditions for the existing residents, thereby helping improve the
overall economic, environmental, and social well-being for
California.
(2) Serve investors, employers, corporate executives, business
owners, and site location consultants who are considering low-income
neighborhoods for business investment and expansion.
(3) Coordinate state programs and funding resources that can be
used to address poverty reduction in California and to assist
low-income neighborhoods to become business, development, and
investment ready.
(d) The California Community Investment Program shall be supported
and staffed by the Governor's Office of Business and Economic
Development using existing resources.
(e) In implementing the program, the director shall establish and
implement a process for establishing public education programs and
providing technical assistance to private sector investors.
(f) The California Community Investment Program shall be governed
by a 14 10 member California Community
Investment Council comprised of:
(1) Six persons appointed by the Governor, comprised of three
members with private sector business or investment expertise, two
members with community development expertise, and one representative
of organized labor.
(2) Four members of the Legislature, two from the Senate appointed
by the Senate Committee on Rules, one from each of the two political
parties with the most representatives in the Senate, and two from
the Assembly appointed by the Speaker of the Assembly, one from each
of the two political parties with the most representatives in the
Assembly. The members shall be nonvoting members of the California
Community Investment Council and shall participate in the activities
of the council only to the extent that their participation is
compatible with their respective positions as Members of the
Legislature.
(3)
(2) The Treasurer.
(4)
(3) The Controller.
(5)
(4) The Secretary of the Business,
Consumer Services, and Housing Agency .
(6)
(5) The Director of the Governor's Office of Business
and Economic Development, shall serve as chair of the council.
(g) There shall be an advisory committee to advise the California
Community Investment Council composed solely of four members of the
Legislature as follows:
(1) Two from the Senate appointed by the Senate Committee on
Rules with one from each of the two political parties with the most
representatives in the Senate.
(2) Two from the Assembly appointed by the Speaker of the Assembly
with one from each of the two political parties with the most
representatives in the Assembly.
12099.24. The California Community Investment Program shall do
all of the following:
(a) Develop and annually update a database of low-income
neighborhoods in California by county and city with relevant
information about each neighborhood, including socioeconomic
demographic data, descriptions of pertinent characteristics to inform
private sector investments, such as local land use plans and zoning
or other development designations, and commitments from local
governments to support private sector investments. These
neighborhoods shall be known as California Community Investment
Neighborhoods. The California Community Investment Council shall
adopt criteria whereby an eligible low-income neighborhood can become
a California Community Investment Neighborhood.
(b) Compile and maintain a current inventory of California public
sector funding resources and financing mechanisms that may be
allocated to or utilized in low-income neighborhoods.
(c) Coordinate public sector financial investment and public
programs to assist low-income communities that are eligible
California Community Investment Neighborhoods to become business,
development, and investment ready and to attract private sector
triple bottom-line fund investments.
(d) Develop and adopt criteria for identifying eligible triple
bottom-line investment funds that will serve as partners and invest
in enterprises and employers that generate permanent living wage
jobs, including investments to assist in starting-up,
starting up, locating, and expanding employers
in low-income neighborhoods.
(e) Develop and adopt criteria for eligible triple bottom-line
investment funds that invest in real estate developments to assist in
constructing, expanding, renovating, and rehabilitating buildings in
low-income neighborhoods that accommodate all allowed land use
approved and permitted by the local government land use regulations.
(f) Establish overall triple bottom-line goals and standardized
metrics for economic, social, and environmental outcomes that shall
be accepted by all eligible investment funds.
(g) Gather evidence and conduct public forums to identify a broad
array of incentives that will encourage triple bottom-line fund
investments in low-income neighborhoods.
(h) Establish and convene regular meetings of the California
Community Investment Network comprised of organizations and
institutions with expertise and resources to advise the California
Community Investment Council and eligible investment fund managers.
(i) Report biannually to the Legislature and the Governor on the
status and progress of the California Community Investment Program
and performance on goals and triple bottom-line outcomes pursuant to
subdivision (f).
12099.26 12099.26. The California
Community Investment Program shall encourage significant private
sector commitment, cooperation, and collaboration to invest private
capital in low-income neighborhoods through eligible triple
bottom-line investment funds with the goal of obtaining, by January
1, 2019, at least one billion dollars ($1,000,000,000) of new
investment by triple bottom-line investment funds in triple
bottom-line real estate developments and businesses located in
low-income California neighborhoods.
