BILL NUMBER: AB 1464 CHAPTERED 10/10/99 CHAPTER 597 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 5, 1999 PASSED THE ASSEMBLY SEPTEMBER 8, 1999 PASSED THE SENATE SEPTEMBER 7, 1999 AMENDED IN SENATE SEPTEMBER 2, 1999 AMENDED IN ASSEMBLY APRIL 27, 1999 INTRODUCED BY Assembly Members Florez and Cardoza (Principal coauthor: Assembly Member Strom-Martin) FEBRUARY 26, 1999 An act to add Article 7 (commencing with Section 15373.100) to Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of, and to repeal Chapter 1.9 (commencing with Section 65055) of Division 1 of Title 7 of, the Government Code, relating to economic development, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1464, Florez. Rural development. (1) Existing law provides for various rural development programs in the state. This bill would set forth the authority and duties of the Rural Development Council , within the Trade and Commerce Agency, the purpose of advocating and recommending programs that foster community sustainability and community and economic development initiatives in rural, nonurban, and nonmetropolitan areas of California. The council would consist of members with up to 27 votes. Twenty of these members would be appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, the state director of the United States Department of Agriculture, Rural Development would also be urged to sit as a member, and various state and federal government representatives would be authorized to serve on the council. Two Members of the Assembly and 2 Senators would serve in an advisory capacity . The council would have specified powers and duties. The bill would create the Rural Development Fund within the State Treasury to promote and assist in rural development efforts across the state. (2) Existing law required the Director of Planning and Research, in consultation with the Governor's Interagency Council on Growth Management and an advisory committee composed of rural landowners and citizens, to adopt a rural economic growth strategy, on or before December 31, 1994, to encourage a healthy, self-sustaining rural economy and society, among other things. This bill would repeal these provisions. (3) This bill would appropriate $15,000 from the General Fund to the Trade and Commerce Agency for specified 1999-2000 fiscal year reimbursement costs for the council. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) According to the United States Bureau of the Census, California has 2.1 million rural residents, representing 7 percent of the state's total population. California has the eighth largest rural population in the nation, and its rural population is greater than the total population of 17 states. Outside of California's four major metropolitan areas, the majority of the state's geography is rural. (b) Rural areas of California offer more open space, more natural recreational facilities, less congestion and pollution, and closer-knit communities than urban areas. (c) While rural areas of California have a lower cost of living than urban areas, residents of rural areas also have lower incomes, and are more likely to be unemployed than are residents of urban areas. (d) In general, the population of California's rural counties contains a much larger percentage of both children ages 14 years and younger and adults ages 45 years and older than do the populations of urban counties. Consequently, rural areas have more elderly residents and children than do urban areas. (e) California is a relatively wealthy state, yet most of its wealth is concentrated in its urbanized areas. The average per capita income of California's rural counties in 1989 was fifteen thousand four hundred thirty dollars ($15,430), only 94 percent of the state's per capita income of sixteen thousand four hundred nine dollars ($16,409). (f) Unemployment rates in nonurban and nonmetropolitan areas of California are significantly higher than the state average based on 1990 United States Census data. These rates, averaged across regions, mask even higher unemployment rates at local levels and during winter months when unemployment is highest. In addition, the gap between metropolitan and nonmetropolitan unemployment has remained stable in recent years. (g) Based on the average wage per job in 1990, those who are able to find employment in rural areas earn significantly less than those in similar positions in urban areas. (h) Despite these grim statistics, based on a low labor force participation rate there is strong potential for economic growth in rural areas. (i) The Legislature recognizes the need for the state to create a California Rural Development Council to advocate and recommend programs that foster community sustainability and economic development initiatives in rural, nonurban, and nonmetropolitan areas of California. SEC. 2. (a) It is the intent of the Legislature in enacting this act to provide statutory authority for the Rural Development Council, which exists within the Trade and Commerce Agency for the following purposes: (1) Improving communication between state and federal agencies and rural areas, and providing a forum for the discussion of issues related to rural development. (2) Coordinating the efforts of state and federal agencies in working with local and tribal governments and the private sector in matters related to rural development. (3) Recommending policies, strategies, and programs to address the needs of rural California. (4) Providing advice to California state agencies on issues affecting rural California. (b) It is further the intent of the Legislature that the Rural Development Council shall be established outside of state government as a separate, private nonprofit corporation upon meeting the following criteria: (1) The council becomes a member of the United States Department of Agriculture National Rural Development Partnership. (2) The council conducts a feasibility analysis and, notwithstanding Section 7550.5 of the Government Code, submits a report to the Legislature no later than January 1, 2003, that outlines a process for incorporating as a private nonprofit corporation, demonstrating fiscal and legal accountability, organizational capacity, leadership, and staffing, and support of partners and stakeholders. (3) The council has secured funding in support of rural program development from various sources, including, but not limited to, federal, state, and local government, or private entities. SEC. 3. Article 7 (commencing with Section 15373.100) is added to Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of the Government Code, to read: Article 7. Rural Development Council 15373.100 (a) The Rural Development Council, within the Trade and Commerce Agency, shall have the authority and duties specified in this article. The council shall advocate and recommend programs that foster community sustainability and community and economic development initiatives in rural, nonurban, and nonmetropolitan areas of California. (b) The mission of the council shall be to provide a voice for the needs and interests of rural residents and businesses in a comprehensive and collaborative manner. Further, it shall be the mission of the council to support and encourage local decisionmaking efforts to improve the quality of life in rural areas. (c) During the first five years after enactment of this article, the council shall minimally consider addressing the following issues and concerns of rural areas: (1) Methods of increasing available financing for small and medium-sized businesses, agricultural enterprises, residential development, essential public facilities, and infrastructure. (2) Encouraging the development of new domestic and foreign marketing opportunities for manufacturing, service, and agricultural enterprises. (3) An analysis of the impact that the lack of health care has on the development and expansion of businesses, senior citizens, and children. (4) Examples of successful programs that enhance the viability of agricultural enterprises located in the agricultural and urban interface. 15373.101. For purposes of this article, "rural development" means economic and community development activities that address the specific needs of rural, nonurban, and nonmetropolitan areas. Rural development shall include, but not be limited to, issues and concerns of agriculture, manufacturing, and other business enterprises; health care; housing; infrastructure; law enforcement; fire safety; public health; and education. 15373.102. The council shall represent a wide range of rural interests and geographic areas from across the state. In making appointments pursuant to Sections 15373.103, 15373.104, and 15373.105, the appointing authorities shall, to the greatest extent possible, appoint members who represent a fair geographic distribution of the state. 15373.103. (a) The Governor shall appoint 10 members to the council, each of whom shall have expertise in one or more of the following areas as it relates to rural, nonurban, or nonmetropolitan communities: (1) Small business. (2) Agriculture, which may include crop production or range management. (3) Manufacturing. (4) Law enforcement. (5) Native American affairs. (6) Forestry. (7) Fisheries. (8) Water. (9) Land use planning. (10) Local government. (b) At least four members appointed by the Governor shall represent a nonprofit organization from a rural, nonurban, or nonmetropolitan community. 15373.104. (a) The Speaker of the Assembly shall appoint five public members to the council, each of whom shall have expertise in one of the following areas as it relates to rural, nonurban, or nonmetropolitan communities: (1) Banking or lending. (2) Human services or social services. (3) Economic development. (4) Transportation. (5) Health. (b) No public member appointed by the Speaker of the Assembly shall have expertise in the same area as any other appointed member. At least two members appointed by the Speaker of the Assembly shall represent a nonprofit organization from a rural, nonurban, or nonmetropolitan community. (c) The Speaker of the Assembly shall also appoint two Members of the Assembly from different political parties as nonvoting advisory members of the council. 15373.105. (a) The Senate Committee on Rules shall appoint five public members to the council, each of whom shall have expertise in one of the following areas as it relates to rural, nonurban, or nonmetropolitan communities: (1) Education. (2) Farmworker labor. (3) The environment or natural resources. (4) Housing. (5) Telecommunications or information technology. (b) No public member appointed by the Senate Committee on Rules shall have expertise in the same area as any other appointed member. At least two members appointed by the Senate Committee on Rules shall represent a nonprofit organization from a rural, nonurban, or nonmetropolitan community. (c) The Senate Committee on Rules shall also appoint two Members of the Senate from different political parties as nonvoting advisory members of the council. 15373.106. (a) The state director of the United States Department of Agriculture, Rural Development, shall be urged to sit as a federal government representative to the council. The state director shall be a voting member of the council. (b) (1) Members of the council representing state government may include the following: (A) The executive director of the Governor's Rural Development Advisory Committee. (B) The Secretary of Trade and Commerce. (C) The Director of Housing and Community Development. (D) The Governor's Rural Health Policy Council adviser. (E) The Superintendent of Public Instruction. (F) The Secretary of Agriculture. (G) The Secretary of Business, Transportation and Housing. (H) Any other representatives of state government, to be appointed by the Governor as he or she deems necessary. (2) These state government members may have no more than three votes collectively, regardless of how many serve. (c) (1) Members of the council representing the federal government may include, but need not be limited to, the following: (A) The Region IX representative for the federal Department of Education. (B) The Region IX representative for the federal Economic Development Agency. (C) The Region IX representative for the federal Department of Housing and Urban Development. (D) The Region IX representative for the Federal Emergency Management Agency. (E) The Region IX representative for the federal Department of Health and Human Services. (F) The Region IX representative for the Environmental Protection Agency. (G) The Region IX representative for the United States Forest Service. (H) Any other federal government representatives who wish to participate. (2) These federal government members may have no more than three votes collectively, regardless of how many serve. (d) The council may add ex officio, nonvoting members as it deems appropriate. 15373.107. Members appointed by the Governor pursuant to Section 15373.103, and by the Speaker of the Assembly and the Senate Committee on Rules may represent the private sector, local government, state government, the federal government, academia, nonprofit organizations, Indian tribes, trade or labor associations, community groups, or any other group that has provided the member with an expertise in his or her particular area. 15373.108. (a) All members of the council shall serve for two-year terms, except that five of the initial members appointed by the Governor, two of the initial members appointed by the Speaker of the Assembly, and three of the initial members appointed by the Senate Committee on Rules shall each serve a one-year term. (b) Legislative members shall serve for two-year terms. (c) There is no limitation on the number of terms that may be served by any member. (d) Members may only be removed from the council by their appointing authority for reasonable cause. For purposes of this article, reasonable cause shall include, but is not limited to, conviction of a felony, physical inability to carry out the requirements and responsibilities of the office, neglect of duty, misconduct, or malfeasance in office. 15373.109. The Secretary of Trade and Commerce shall serve as chairperson of the council. The council shall annually select a vice chairperson from among its members for a one-year term. There is no limitation on the number of terms that may be served by a vice chair. 15373.110. (a) (1) The council shall meet at least biannually and at any additional time that the chairperson or a majority of the council deems necessary to fulfill the function and operations of the council. (2) Meetings shall rotate to different locations across the state. Pursuant to Article 9 (commencing with Section 11120) of Chapter 1 of Part 1, all meetings shall be open to the public and shall include provisions for public comment. (3) (A) Council members shall be compensated for appropriate and necessary travel expenses, consistent with state guidelines for reimbursed travel expenses for nonrepresented excluded employees. (B) It is the intent of the Legislature that an annual appropriation of thirty thousand dollars ($30,000) be made for reimbursement costs under this paragraph. (b) A quorum shall be 11 of the 21 voting members appointed pursuant to Sections 15373.103, 15373.104, and 15373.105. For the initial meeting and the two subsequent meetings a quorum of the council need not be present. (c) The council shall adopt bylaws outlining its operations and procedures within six months of their first meeting. (d) The first meeting of the council shall be called by March 1, 2000. The Secretary of Trade and Commerce, as chairperson, shall convene the initial meeting. Subsequent meetings shall be at times and locations agreed upon by a majority of the voting members of the council. 15373.111. The council shall do all of the following: (a) Focus attention on, and increase public awareness of, the opportunities and needs of Californians living and working in rural, nonurban, and nonmetropolitan communities. (b) Advocate for rural California by proposing solutions to challenges facing rural, nonurban, and nonmetropolitan communities across this state. (c) Strengthen community sustainability and growth in rural, nonurban, and nonmetropolitan California through increased community-based wealth creation, expanded economic opportunity, and improved quality of life. (d) Stimulate rural development innovation and foster the transfer of information to, from, and within rural, nonurban, and nonmetropolitan California. (e) Encourage and support continuity, coordination, and cooperation among national, state, multicommunity, and local rural development initiatives and service providers. (f) Ensure that Californians in rural, nonurban, and nonmetropolitan areas are afforded the opportunity to determine this state's rural development agenda for their communities. (g) Provide a voice to all segments of this state's rural, nonurban, and nonmetropolitan communities on rural issues. (h) Serve as an advisory board to the Governor, state agencies, and the Legislature on rural development issues. (i) Establish an information clearinghouse on rural challenges and needs, development services, model initiatives, available resources, and service providers. (j) Foster community-based development initiatives through multicommunity partnerships. (k) Support strategic planning and research for, and evaluation of, rural development initiatives and service providers. (l) Bring together in a comprehensive and understandable way the fragmented community development resources that rural communities must rely on to meet their residents' needs. (m) Serve as California's state rural development council within the meaning of the Presidential Initiative on Rural America and the United States Department of Agriculture's National Rural Development Partnership by providing inventories, reports, assessments, and implementation plans as appropriate, and working together with the federal government to achieve the National Rural Development Partnerships Goals of collaboration and effective utilization of rural development resources in order to identify, resolve, and eliminate intergovernmental and interagency impediments and other barriers that hinder effective rural development efforts. (n) Engage in any other appropriate activities necessary to fulfill the purposes, duties, and powers of the council, which may include, but are not limited to, all of the following: (1) Obtaining advisers. (2) Creating task forces composed of noncouncil members. (3) Holding, hosting, planning, or attending conferences on rural development issues. (4) Creating and managing an Internet home page. (5) Producing a newsletter. (6) Issuing reports, recommendations, or other communications as deemed necessary by the council. (7) Making recommendations to the Legislature, Governor, and federal government on issues related to rural California. (8) Hiring employees. 15373.112. The council may apply for and receive gifts, grants, contributions, and other funds from the state government, local government, federal government, private agencies, corporate entities, affiliated associations, agricultural boards, agricultural advisory boards, agricultural marketing programs, and individuals and may, consistent with state law, contract with public and private groups to conduct its business. 15373.113. Notwithstanding Section 7550.5, on or before November 15 of each year, the Secretary of Trade and Commerce, as chairperson of the council, shall transmit to the Governor and the Legislature a report that includes a summary of the council's activities, recommendations for future rural development action, and an accounting of the source and use of funds disbursed during the previous fiscal year. 15373.114. (a) The Rural Development Fund is hereby created in the State Treasury to promote and assist in rural development efforts across the state. (b) Money deposited in the fund shall include any monetary gifts, grants, and donations, and reimbursements of expenses, including, but not limited to, moneys from the United States Department of Agriculture. SEC. 4. Chapter 1.9 (commencing with Section 65055) of Division 1 of Title 7 of the Government Code is repealed. SEC. 5. The sum of fifteen thousand dollars ($15,000) is hereby appropriated from the General Fund to the Trade and Commerce Agency for the 1999-2000 fiscal year reimbursement costs specified in paragraph (3) of subdivision (a) of Section 15373.110 of the Government Code, as added by Section 3 of this act.