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  April 22, 2019

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 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 state government.

LEGISLATIVE COUNSEL'S DIGEST

SB 736, as amended, Umberg. Creative Economy Incentive Program. Task Force.

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.

This bill would establish the Creative Economy Task Force within GO-Biz, chaired by the Director of GO-Biz and comprised of various representatives from the Governor’s Office, the Department of Finance, rural and urban tourism organizations, the California State Association of Counties, and the League of California Cities and representatives appointed by the Senate and the Assembly. The bill would require the task force to study and submit a report to the Legislature by June 30, 2020, regarding the creation of a state fund designated to assist local governments to compete with other states in the bidding processes for major events, which includes arts and cultural events, entertainment events, agricultural events, sporting events, and international conferences. The bill would provide that the task force terminates on December 31, 2020.

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 ProgramCreative Economy Task Force

12100.100.

 (a) This article shall be known, and may be cited, as the Creative Economy Task Force Act.

(b) It is the intent of the Legislature in enacting this article to explore strategies for the state to assist local governments in attracting major events to spur job growth and to boost the economy.

(c) For purposes of this article, “major events” includes, but is not limited to, arts and cultural events, entertainment events, agricultural events, sporting events, and international conferences.

12100.101.

 (a) There is hereby created a Creative Economy Task Force within the office.

(b) The task force shall study and submit a report to the Legislature on the creation of a state fund designated to assist local governments to compete with other states in the bidding process for major events. The report shall include, among other things, all of the following:

(1) A detailed description and fiscal analysis of major events that currently take place within the state.

(2) A projection and fiscal analysis of major events which occur outside of the state.

(3) A list of major events that could be targeted by the fund.

(c) The task force shall submit the report to the appropriate policy and fiscal committees of the Legislature by June 30, 2020.

(d) The task force shall terminate on December 31, 2020.

12100.102.

 (a) The task force shall be comprised of the following individuals:

(1) The director or their designee.

(2) A representative appointed by the Governor’s Office.

(3) A representative from the Department of Finance.

(4) A representative appointed by the Senate.

(5) A representative appointed by the Assembly.

(6) Two representatives from tourism organizations from urban counties.

(7) Two representatives from tourism organizations from rural counties.

(8) A representative from the California State Association of Counties.

(9) A representative from the League of California Cities.

(10) A representative from a private or non-profit group that has a track record of financing, planning, implementing, and executing large scale major events.

(b) The director shall serve as the chairperson of the task force.

(c) Members of the task force shall not receive compensation or any other payment for their service on the task force.

12100.103.

 This article shall remain in effect only until December 31, 2020 and as of that date is repealed.

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.