BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SCR 158| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SCR 158 Author: Pan (D) and De León (D), et al. Amended: 8/16/16 Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE: 9-2, 8/9/16 AYES: Hall, Block, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire NOES: Bates, Vidak NO VOTE RECORDED: Berryhill, Gaines SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen SUBJECT: Promise Zones SOURCE: Author DIGEST: This resolution encourages 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. Senate Floor Amendments of 8/16/16 (1) add Senator Hall and Assembly Member Atkins as coauthors and (2) make a minor SCR 158 Page 2 technical change. ANALYSIS: This resolution: 1)Encourages 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 educational opportunities, increase access to affordable quality housing, and improve public safety. 2)Encourages CDE, CDHCD, DOJ, and CDFA to consider giving Promise Zones competitive preferences for state funding and programs. 3)Encourages California to explore implementation of the same models that have been developed by the federal programs that give preferences to Promise Zones. 4)Declares that a child's Zip Code should never determine his or her destiny and that the community a child grows up in greatly impacts his or her odds of graduating from high school, health outcomes, and economic opportunities. Background Purpose of the resolution. 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." Promise Zones. In his 2014 State of the Union Address, President Obama laid out an initiative to designate a number of urban, rural, and tribal communities as Promise Zones. Promise Zones are high poverty communities where the federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health and address other priorities identified by the community. The Promise Zone designation lasts for a term of 10 years. SCR 158 Page 3 During this term, the specific benefits available to Promise Zones will vary from year to year, and sometimes more often, due to changes in the agency policies and changes in appropriations and authorizations for relevant programs. There are 22 urban, rural and tribal Promise Zones, including four in California. These include Los Angeles, South Los Angeles, San Diego, and Sacramento. Promise Zones were selected through three rounds of national competition, in which applicants demonstrated a consensus vision for their community and its residents, the capacity to carry out that vision, and a shared commitment to specific, measurable results. Related/Prior Legislation AB 2 (Alejo, Chapter 319, Statutes of 2015) authorized 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. FISCAL EFFECT: Appropriation: No Fiscal Com.: YesLocal: No According to the Senate Appropriations Committee, 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. Additionally, 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. Finally, unknown potential cost pressure to implement programs SCR 158 Page 4 modeled after federal programs that give preference to Promise Zones. SUPPORT: (Verified8/16/16) None received OPPOSITION: (Verified8/16/16) None received Prepared by:Felipe Lopez / G.O. / (916) 651-1530 8/17/16 15:50:35 **** END ****