Bill Text: CA SB736 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creative Economy Incentive Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2019-08-30 - August 30 hearing: Held in committee and under submission. [SB736 Detail]

Download: California-2019-SB736-Amended.html

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Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 736

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Introduced by Senator Umberg

February 22, 2019

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An act to add Section 16428.88 to and repeal Article 8 (commencing with Section 12100.100) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to greenhouse gases. state government.

LEGISLATIVE COUNSEL'S DIGEST

SB 736, as amended, Umberg. Airport Greenhouse Gas Reduction Account. Creative Economy Incentive Program.

Existing law, the Economic Revitalization Act, establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to, among other duties, serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.

This bill would, until an unspecified date, enact the Creative Economy Incentive Program, which would be administered by GO-Biz, for the purpose of providing loans to cities, counties, and joint powers agencies to provide assistance in financing a creative economy event. The bill would require a city, county, or joint powers agency to apply to GO-Biz for a loan pursuant to the program on an application that contains specified minimum information. The bill would require an applicant who receives funds under these provisions to comply with repayment and reporting requirements. The bill would authorize the office to form a steering committee to make recommendations to the office regarding applicants under the program. The bill would establish the Creative Economy Incentive Program Fund, which, upon appropriation, would be used to carry out these provisions.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

This bill would create the Airport Greenhouse Gas Reduction Account in the Greenhouse Gas Reduction Fund. The bill would require all moneys in the account to be available upon appropriation for allocation to airport greenhouse gas emissions reduction projects.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Article 8 (commencing with Section 12100.100) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article  8. Creative Economy Incentive Program

12100.100.

 (a) This article shall be known, and may be cited, as the Creative Economy Incentive Program.

(b) (1) There is in the State Treasury, the Creative Economy Incentive Program Fund. Upon appropriation by the Legislature, the office may use moneys in the fund to carry out the purposes of this article.

(c) A prudent reserve balance shall be maintained in the Creative Economy Incentive Program Fund at all times. The office may retain an amount not to exceed ____ percent of the total amount appropriated to the fund in a fiscal year for its reasonable administrative expenses, including, but not limited to, loan servicing and accounting costs.

12100.101.

 (a) (1) It is the intent of the Legislature to spur jobs and economic growth throughout the state by establishing a loan program to provide timely and reliable financial support that is accessible to all cities, counties, and joint powers agencies in the state.

(2) It is the intent of the Legislature in enacting this program to allow cities, counties, and joint powers agencies to successfully compete against jurisdictions in other states to attract creative economy events aimed at growing jobs and stimulating the state’s economy.

(b) The Legislature hereby finds and declares that a variety of approaches for attracting significant creative economy events in other regions outside of California have been demonstrated to be successful, including the establishment of the Major Events Incentive Program, in Louisiana, and the Event Trust Fund, in Texas, which allow local governments and local organizing committees to apply to the state for the establishment of separate event trust funds to help pay for certain eligible costs associated with conducting those events.

(c) The Legislature hereby finds and declares that the establishment of a state fund for attracting events with major beneficial impact to the state and its regions has been shown to be successful in stimulating the economy through job growth, economic and infrastructure development, and the influx of increased net revenue for the state and local governments as a result of increased tourism.

12100.102.

 For purposes of this article, the following terms have the following meanings:

(a) “Applicant” means a city, county, or joint powers agency.

(b) “Program” means the Creative Economy Incentive Program established by this article.

12100.103.

 (a) The office shall solicit applications from applicants for loans administered pursuant to this article.

(b) Each application submitted to the office shall be submitted in the form and manner prescribed by the office and shall include any information the office determines is necessary or convenient to administer the program, including, at a minimum, all of the following:

(1) A description of the proposed creative economy event and its likely impact on the local economy.

(2) A description of the applicant’s and any partnering organization’s experience in sponsoring or hosting significant creative economy events.

(3) A description of the financial strength and stability of the applicant and any partnering organizations.

(4) A proposed budget for the creative economy event, that shall include, but is not limited to, income and projected net revenues.

(5) A description and specific accounting of how the loan will be used.

(6) The amount of matching funds to be provided from both the applicant and any partner organizations.

(7) The mechanism to be used for repayment of the loan from proceeds of the creative economy event or other revenues.

(8) A proposal outlining a contribution by the applicant to the Creative Economy Incentive Program Fund above the repayment of the proposed loan.

(c) The office shall review any application received pursuant to subdivision (b) to determine if it meets the requirements of this article and to evaluate the quality of the proposed creative economy event for which the loan is to be awarded. The office shall notify applicants of whether the application was approved or denied and state the reasons of the approval or denial.

(d) The office may publish guidelines for applications submitted pursuant to this section.

12100.104.

 (a) (1) The office shall issue a promissory note to an applicant approved pursuant to Section 12100.103, which shall state the approved loan amount.

(2) The office shall make those funds available to an approved applicant upon confirmation that the applicant was successfully selected as the host for the creative economy event for which the application was made.

(b) The office and the approved applicant shall enter into a contract to secure repayment of the loan. That contract shall include the terms and conditions of repayment.

(c) (1) An applicant that has received a loan pursuant to this article shall report, on an annual basis, to the office on the status of the creative economy event for which the loan was approved.

(2) The report shall include an accounting, updated on an annual basis, for any funds received pursuant to this article.

12100.105.

 (a) The office may establish an executive steering committee to make recommendations to the office regarding applications.

(b) The steering committee may include members from relevant state agencies and departments with expertise in economic development, job growth, and tourism.

(c) The office may consult with the steering committee on applications submitted pursuant to Section 12100.103. The steering committee may make recommendations to the office regarding the efficiency and viability of those applications and any criteria for prioritizing applications for approval if funding requested by those applications exceed the amount determined to be available in the fund for a particular fiscal year.

12100.106.

 This article shall remain in effect only until ____, and as of that date is repealed.

SECTION 1.Section 16428.88 is added to the Government Code, to read:

16428.88.

(a)The Airport Greenhouse Gas Reduction Account is hereby created in the Greenhouse Gas Reduction Fund in the State Treasury.

(b)Moneys in the Airport Greenhouse Gas Reduction Account shall be available upon appropriation by the Legislature for allocation to airport greenhouse gas emissions reduction projects, including, but not limited to, the purchase of zero-emission vehicles and related infrastructure.