BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SCR 158 (Pan) - Promise Zones ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2016 |Policy Vote: G.O. 9 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: |Mandate: | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SCR 158 would encourage the State Department of Education (CDE), the Department of Housing and Community Development (CDHCD), the Department of Justice (DOJ), and the Department of Food and Agriculture (CDFA) to give priority consideration and preferred access to state programs and resources to federally designated Promise Zones in California that support job creation and economic security, expand educational opportunities, increase access to affordable quality housing, and improve public safety. Fiscal Impact: Unknown potential cost pressure to CDE, CDHCD, DOJ, and CDFA to increase funding on state programs and resources to give priority consideration and preferred access to Promise Zones. (GF) SCR 158 (Pan) Page 1 of ? Unknown potential cost pressure to CDE, CDHCD, DOJ, and CDFA to modify procedures to give priority consideration and competitive preference for programming and state funding to Promise Zones. (GF) Unknown potential cost pressure to implement programs modeled after federal programs that give preference to Promise Zones. (GF) Background: Promise Zones are high-poverty urban, rural, and tribal communities designated by President Obama. In his 2013 State of the Union Address, the President laid out an initiative where the federal government will partner with and invest in Promise Zones to create jobs, leverage private investment, increase economic activity, expand educational opportunities, and reduce violent crime. Communities must compete in a transparent application process and demonstrate the strength and effectiveness of their local partners' commitment in order to become Promise Zones. The Promise Zone designation will be for a term of 10 years and may be extended as necessary. Starting January 2014, President Obama has announced 22 Promise Zones over three rounds. Los Angeles was announced in the first round, Sacramento was announced in the second round, and South Los Angeles and San Diego were announced in the third and final round. According to the author, "the resolution raises awareness on federally designated Promise Zones and encourages the CDE, CDHCD, DOJ, and CDFA to give federally designated Promise Zones priority consideration and preferred access to State programs and resources." Proposed Law: This resolution would: Encourage CDE, CDHCD, DOJ, and CDFA to give priority consideration and preferred access to state programs and resources to federally designated Promise Zones in California that support job creation and economic security, expand SCR 158 (Pan) Page 2 of ? educational opportunities, increase access to affordable quality housing, and improve public safety. Encourage CDE, CDHCD, DOJ, and CDFA to consider giving Promise Zones competitive preferences for state funding and programs. Encourage California to explore implementation of the same models that have been developed by the federal programs that give preferences to Promise Zones. Related Legislation: AB 2 (Alejo, Chapter 319, Statutes of 2015) authorizes local governments to create Community Revitalization and Investment Authorities to use tax increment revenue to improve the infrastructure, assist businesses, and support affordable housing in disadvantaged communities. AB 93 (Committee on Budget, Chapter 69, Statutes of 2013) phased-out and ended certain tax provisions related to Enterprise Zones and similar tax incentive areas, and ended the New Jobs Credit tax incentive program. -- END --