Bill Text: CA SB635 | 2017-2018 | Regular Session | Amended

California Senate Bill 635 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Governor’s Office of Business and Economic Development: local economic development liaison services.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2018-09-28 - Chaptered by Secretary of State. Chapter 888, Statutes of 2018. [SB635 Detail]

Download: California-2017-SB635-Amended.html

Amended IN Senate January 23, 2018

Amended IN Senate January 03, 2018

Amended IN Senate April 03, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 635

Introduced by Senator Hueso

February 17, 2017

An act to add Article 4.6 (commencing with Section 12097.5) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to economic development.

LEGISLATIVE COUNSEL'S DIGEST

SB 635, as amended, Hueso. Governor’s Office of Business and Economic Development: Office of the Promise Zone Coordinator.

Existing law establishes the Governor’s Office of Business and Economic Development in state government. Existing law requires that the office serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing ~~federal and~~ state regulation defines a “Federal Promise Zone” as any area with a continuous boundary and a population of not more than 200,000 that is nominated by a local government or Indian tribe and designated by the United States Department of Housing and Urban Development to receive priority for federal funding on the basis of its unemployment, poverty, vacancy, and crime rates.

This bill would ~~establish, within~~ authorize the Governor’s Office of Business and Economic ~~Development,~~ Development to create the Office of the Promise Zone Coordinator within its office to provide state assistance to California Promise Zones. This bill would define a California Promise Zone as a community in this state that has been designated by the United States Department of Housing and Urban Development as a Promise Zone. The bill would ~~require~~ authorize the Promise Zone Coordinator to provide state liaison services to California Promise Zone lead agencies in their efforts to receive state assistance, as specified. The bill would require designated state programs to provide preferences to entities or projects located within, or for the benefit of residents within, ~~California Promise Zones.~~ a California Promise Zone or any community in California that applied to be designated a Promise Zone. The bill would limit its application to a Promise Zone for the 10-year duration of its designation by the federal government or to a community in California that applied to be designated a Promise Zone for 10 years from the date the designations were made for the competition round in which the community applied. The bill also would apply to any Promise Zone designated after its enactment and any community that applies to be a Promise Zone after its enactment.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

The Legislature hereby finds and declares the following:

(a) Despite overall statewide economic improvement in recent years, there remain pockets of significant unemployment and economic distress in certain areas of the state.

(b) The federal Department of Housing and Urban Development recently designated Promise Zones throughout the country, including in California, which are intended to boost economic activity and job growth, improve educational opportunities, reduce crime, and leverage private investment to improve the quality of life in these vulnerable areas.

(c) The success of Promise Zones is based on the creation of strategic relationships among all levels of government, community organizations, and the private sector.

(d) The Promise Zone designation commits the federal government to partner with local leaders who are addressing multiple community revitalization challenges with on-the-ground technical assistance to help navigate federal programs and regulations. This intensive engagement will help communities make the most of funding already available.

(e) Currently, the state does not offer any targeted assistance to California Promise Zones. By folding in the focused attention of state programs to the California Promise Zones, we will be able to further strengthen and revitalize areas of our state where most needed. Additionally, by including state programmatic assistance in accordance with this act, it is hoped that other California communities, both rural and urban, would be well suited to compete in any future round of designations the federal government may authorize.

SEC. 2.

Article 4.6 (commencing with Section 12097.5) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article 4.6. Office of the Promise Zone Coordinator

12097.5.

(a) ~~There is hereby established within the~~ The Governor’s Office of Business and Economic Development is hereby authorized to create the Office of the Promise Zone Coordinator within its office to provide state assistance to federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development. The Promise Zone Coordinator ~~shall~~ may provide state liaison services to California Promise Zone lead agencies in their efforts to receive state assistance, including, but not limited to, those programs listed in subdivision (c).

(b) As used in this section, “California Promise Zone” means a community in this state that has been designated by the United States Department of Housing and Urban Development as a Promise Zone.

(c) The following programs shall provide preference or priority points to entities, projects, or both, located within, or for the benefit of residents within, ~~California Promise Zones:~~ a California Promise Zone or any community in California that applied to be designated a Promise Zone:

(1) California Competes tax credit, pursuant to Sections 17059.2 and 23689 of the Revenue and Taxation Code, or the successor program. Any amount of the credit awarded to a taxpayer receiving preference or priority points pursuant to this subdivision shall not be counted against any aggregate limit on the amount of the credit that may be allowed for any year. In no case shall the preference provide more than a 5-percentage point preference.

(2) Low-Income Housing Tax Credit, pursuant to Section 17058 of the Revenue and Taxation Code. Any amount of the credit awarded to a taxpayer receiving preference or priority points pursuant to this subdivision shall not be counted against any aggregate limit on the amount of the credit that may be allowed for any year. In no case shall the preference provide more than a 5-percentage point preference.

(3) All programs administered by the Board of State and Community Corrections.

(4) No Place Like Home as set forth in Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code.

(5) All programs administered by the California Workforce Development Board.

(6) The Employment Training Fund as set forth in Article 6 (commencing with Section 1610) of Chapter 6 of Part 1 of Division 1 of the Unemployment Insurance Code.

(7) Any programs administered by the Department of Parks and Recreation or the Department of Housing and Community Development that provide grants to local agencies for local park creation, rehabilitation, or improvement.

~~(8)Any program established or funded by the Road Repair and Accountability Act of 2017.~~

(d) For a project to be eligible for preference or priority points pursuant to this act, the California Promise Zone lead agency must certify that the project is consistent with and in furtherance of one or more of the goals of the Promise Zone.

(e) The degree and amount of preference or priority points established pursuant to this act shall be determined by each implementing agency and may be developed in collaboration with the Office of the Promise Zone ~~Coordinator.~~ Coordinator, should that office be established.

(f) (1) The provisions of this act shall only apply to a Promise Zone for the 10-year duration of its designation by the federal government or to a community in California that applied to be designated a Promise Zone for 10 years from the date the designations were made for the competition round in which the community applied.
(2) Any Promise Zone designated after the enactment of this act, and any community in California that applies to be a designated Promise Zone after the enactment of this act, shall receive the benefit of the provisions of this act.