BILL NUMBER: SB 765	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ridley-Thomas

                        FEBRUARY 23, 2007

   An act to add Section 13997.2 to the Government Code, relating to
economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 765, as introduced, Ridley-Thomas. Economic development:
economic development corporations and organizations.
    Existing law provides for various programs and activities in the
development of economic opportunities for businesses in the state.
   This bill would make certain findings and declarations with
respect to economic development corporations and organizations, and
define various terms for those purposes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13997.2 is added to the Government Code, to
read:
   13997.2.  (a) The Legislature finds and declares all of the
following:
   (1) California's economic development organizations and
corporations are an integral component of the state job creation
effort because they are a critical link between state economic
development activities and the statewide business community,
providing an excellent opportunity to leverage state resources.
   (2) Economic development corporations and organizations provide
broad public benefit to the residents of this state by alleviating
unemployment, encouraging private investment, and diversifying local
economies.
   (3) Economic development corporations engage in a wide range of
programs and strategies to attract, retain, and expand businesses,
including marketing the community, small business lending, and other
financial services, a wide range of technical assistance to small
business, preparation of economic data, and business advocacy.
   (4) By using public sector resources and powers to reduce the
risks and costs that could prohibit investment, the public sector
often sets the stage for employment-generating investment by the
private sector.
   (b) For purposes of this chapter, all of the following definitions
apply:
   (1) "Economic development" means any activity that enhances the
factors of productive capacity, such as land, labor, capital, and
technology, of a national, state, or local economy. "Economic
development" includes policies and programs expressly directed at
improving the business climate in business finance, marketing,
neighborhood development, small business development, business
retention and expansion, technology transfer, and real estate
redevelopment. "Economic development" is an investment program
designed to leverage private sector capital in such a way as to
induce actions that have a positive effect on the level of business
activity, employment, income distribution, and fiscal solvency of the
community.
   (2) "Economic development corporation" means a local or regional
nonprofit public-private economic development organization recognized
in a defined region by the public and private sector as the lead
agency for the planning and implementation of job creation involving
business retention and new business development.
   (3) "Local economic development" is a process of deliberate
intervention in the normal economic process of a particular locality
to stimulate economic growth of the locality by making it more
attractive, resulting in more jobs, wealth, better quality of life,
and fiscal solvency. Prime examples of local economic development
include business attraction, business expansion and retention, and
business creation.
   (4) "Local economic development organization" means a public or
public-private job creation activity recognized by a city or county
as the lead agency within that city or county for planning and
implementation of job creation involving business expansion, business
retention, and new business development.
   (5) "Regional economic development corporation" means a
corporation composed of any of the following:
   (A) A single county.
   (B) More than one county.
   (C) A subregion within a single county established by a group of
cities and counties.
   (6) "Regional economic development organization" means an
organization composed of any of the following:
   (A) A single county.
   (B) More than one county.
   (C) A subregion within a county established by the cities and
county within that subregion.
   (D) An economic development corporation.