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SB-635 Governor’s Office of Business and Economic Development: local economic development liaison services.(2017-2018)

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Date Published: 09/28/2018 09:00 PM
SB635:v91#DOCUMENT

Senate Bill No. 635
CHAPTER 888

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.

[ Approved by Governor  September 28, 2018. Filed with Secretary of State  September 28, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 635, Hueso. Governor’s Office of Business and Economic Development: local economic development liaison services.
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 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. Existing federal law allows for the designation of certain census tracts as opportunity zones, and provides that specified investments in these zones receive beneficial tax treatment.
This bill would authorize the Governor’s Office of Business and Economic Development to develop content on its Internet Web site or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, California Promise Zones and California Opportunity Zones, as defined. The bill would require the Governor’s Office of Business and Economic Development to convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs, as provided.
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 four 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 Secretary of the United States Treasury certified 879 Opportunity Zones within California which are designed to create incentives for investments and job creation in distressed communities and is currently developing guidelines outlining how the program will work.

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. Local Economic Development Liaison Services

12097.5.
 (a) (1) The Governor’s Office of Business and Economic Development is hereby authorized to develop content on its Internet Web site or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development; and Opportunity Zones designated by the United States Treasury, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.
(2) The information and resources shall include, but not be limited to, how the local jurisdictions or census tracts were created, where locals and investors may get additional information, and updates regarding federal programs as that information becomes available.
(b) The Governor’s Office of Business and Economic Development shall convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs. The convention topics shall include, but not be limited to, discussions on enhanced engagement opportunities and targeted outreach to assist designated areas in their efforts to access state resources and services.
(c) As used in this section:
(1) “California Opportunity Zone” means a census tract in this state that has been designated by the United States Treasury as an Opportunity Zone, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.
(2) “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.