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 --