BILL NUMBER: AB 1555 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Jobs, Economic Development, and the
Economy (V. Manuel Perez (Chair), Logue (Vice Chair), Beall, Bill
Berryhill, Block, Huber, and Salas)
MARCH 11, 2009
An act to amend Section 13997.2 of the Government Code, relating
to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 1555, as introduced, Committee on Jobs, Economic Development,
and the Economy. Economic development.
Existing law designates the Business, Transportation and Housing
Agency as the primary state agency responsible for facilitating
economic development in the state, establishes the California
Economic Development Fund in the State Treasury for the purpose of
receiving specified economic development funds, authorizes the
Secretary of Business, Transportation and Housing to expend moneys in
the fund, upon appropriation by the Legislature, for specified
purposes relating to economic development, authorizes the secretary
to administer the federal Economic Adjustment Assistance Grant, as
defined, and defines various terms for the purposes of these
provisions relating to economic development.
This bill would define additional terms for the purposes of these
provisions in existing law relating to economic development.
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. This act shall be known and may be cited as the
Assembly Committee on Jobs, Economic Development, and the Economy
Annual Economic Development Omnibus Bill.
SEC. 2. Section 13997.2 of the Government Code is amended 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 benefits 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) "Local economic development organization" means a public or
public-private job creation activity recognized by cities and
counties 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.
(2) "Regional economic development organization" means an
organization comprised 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.
(3) "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.
(4) "Regional economic development corporation" means a
corporation comprised 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.
(5) "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.
(6) "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 economic development include
business attraction, business expansion and retention, and business
creation.
(7) "Emerging domestic market" means people, places, or business
enterprises with growth potential that face capital constraints due
to systemic undervaluations as a result of imperfect market
information. These markets include, but are not limited to,
ethnic-owned and women-owned firms, urban and rural communities,
companies that serve low-income or moderate-income populations, and
other small and medium-sized businesses.
(8) "Financial intermediary" means an institution, firm,
organization, or individual who performs intermediation between two
or more parties in a financial context, such as connecting sources of
funds with users of funds. A financial intermediary is typically an
entity that facilitates the channeling of funds between lenders,
investors, foundations, or other entities that have money and are
interested in connecting with businesses or communities where their
money can be deployed. Financial intermediaries include, but are not
limited to, banks, financial development corporations, economic
developers, or microenterprise development organizations, and
community development organizations.
(9) "Community development intermediary" means an institution,
firm, organization, or individual who performs intermediation between
two or more parties in a community development context, such as
connecting people and organizations that have a stake in the future
well-being of communities and individuals who may not easily have
access to these stakeholders. A community development intermediary is
typically an entity that channels financial and nonfinancial
resources between government and foundations and other nonprofit
organizations that have resources and are interested in connecting
with small- and medium-size businesses and low- and moderate-income
households and communities. Community development intermediaries
include, but are not limited to, community development corporations,
microenterprise development organizations, and community development
financial institutions.
(10) "Triple bottom line" means the economic, environmental, and
social benefits arising from a project, investment, or community and
economic development activity.
(11) "Small businesses" means a business with less than 100
employees and with a gross revenue of less than five million dollars
($5,000,000), or a business that is otherwise targeted by or
participating in a federal or state program engaged in programs or
services for small businesses. Application of this definition may
only be used pursuant to a direct reference.
(12) "Community development" means a process designed to create
conditions of economic and social prosperity for the whole community,
or a targeted subset of the whole community, with the fullest
possible reliance on the community's initiative and active
participation.
(13) "Financial institution capital" means resources of a
financial institution, including, but not limited to, a bank or
credit union, that are legally available to be used to generate
wealth for the financial institution.
(14) "California Council on Science and Technology" means the
council established by California academic research institutions,
including the University of California, the University of Southern
California, the California Institute of Technology, Stanford
University, and the California State University, in support of
Assembly Concurrent Resolution No. 162 (Res. Ch. 148, Stats. 1988).
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