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SB-635 Governor’s Office of Business and Economic Development: Office of Geographically Targeted Economic Development.(2017-2018)

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Date Published: 06/28/2018 04:00 AM
SB635:v94#DOCUMENT

Amended  IN  Assembly  June 27, 2018
Amended  IN  Assembly  June 12, 2018
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. Geographically Targeted Economic Development.
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 create the Office of the Promise Zone Coordinator Geographically Targeted Economic Development within its office to provide state assistance to for the purpose of supporting place-based and other geographically targeted economic development programs, including, but not limited 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. Zones and California Opportunity Zones, as defined. The bill would authorize the Promise Zone Coordinator office coordinator to provide state liaison services to California Promise Zone lead agencies and other place-based and geographically targeted economic development areas 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 direct benefit of residents within, a California Promise Zone or any community in California that applied to be designated a Promise Zone and a California Opportunity Zone. The bill would limit its application to a Promise Zone or Opportunity 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 Geographically Targeted Economic Development

12097.5.
 (a) 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 Geographically Targeted Economic Development for the purpose of supporting 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. The Promise Zone
Development; and Opportunity Zones designated by the United States Treasury, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.
The Coordinator may provide state liaison services to California Promise Zone lead agencies and other place-based and geographically targeted economic development areas in their efforts to receive state assistance, access state resources and services, including, but not limited to, those programs listed in subdivision (c).
(b) As used in this section, “California 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.
(3) “Coordinator” means the person who leads and is responsible for the activities of the Office of Geographically Targeted Economic Development, if that office is created.
(c) The following programs shall provide preference or priority points to entities, projects, or both, located within, or for the direct benefit of residents within, within a California Promise Zone Zone, or any community in California that applied to be designated a Promise Zone: Zone, and a California Opportunity 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) All programs administered by the Board of State and Community Corrections.
(3) 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.
(4) All programs administered by the California Workforce Development Board.
(5) 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.
(6) 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.

(d)

(e) (1) For a project to be eligible for preference or priority points pursuant to this act, the California Promise Zone lead agency shall certify that the project is consistent with and in furtherance of one or more of the goals of the Promise Zone.
(2) For a project not meeting the requirements of subparagraph (1) to be eligible for a preference or priority pursuant to this act, the Opportunity Zone shall provide evidence that the project or facility will be located in an Opportunity Zone.

(e)

(f) 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, should that office be established.

(f)

(g) (1) The provisions of this act shall only apply to a Promise Zone or Opportunity 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.

(g)

(h) Any amount of the low-income housing tax credit awarded pursuant to Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code to a taxpayer for a project located within a California Promise Zone shall not be counted against any aggregate limit on the amount of the credit that may be allowed for any year.