BILL ANALYSIS
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THIRD READING
Bill No: AB 1721
Author: Assembly Committee on Jobs, Economic Development,
and the
Economy
Amended: 7/18/07 in Assembly
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 7-0, 7/2/07
AYES: Ridley-Thomas, Aanestad, Calderon, Corbett, Denham,
Florez, Simitian
NO VOTE RECORDED: Harman, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/10/07 - See last page for vote
SUBJECT : Economic development
SOURCE : California Association of Local Economic
Development
DIGEST : This bill authorizes the Secretary of Business,
Transportation and Housing to administer the federal
Economic Adjustment Assistance Grant subject to specified
criteria. The secretary would be authorized to sign and
contract administration of the grant to a joint powers
agency. In addition, the bill defines the terms "economic
development," "economic development corporation," and
"regional economic development organization," and make
related findings and declarations.
CONTINUED
AB 1721
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2
ANALYSIS :
Existing law:
1.Provides for the Trade, Technology and Commerce Agency
(TTCA) to adopt state matching grant criteria for the
California Technology Reinvestment Project (TRP)
proposals.
2.Defines terms such as "economic development lenders,"
"economic development facilities" and "economic
development plan," but provides no specific definition of
"economic development."
3.Creates the Economic Development Adjustment Assistance
(EDAA) program, funded by the federal government, to
administer and distribute federal funds for the grant
program.
This bill:
1.Deletes an obsolete section of the Government Code
related to the TRP.
2.Makes findings and declarations regarding the state's
economic development organizations and corporations and
how they are linked with the state's economic development
activities.
3.Defines several key terms used in statute pertaining to
economic development, including "Local Economic
Development Corporation," "Regional Economic Development
Organization," Regional Economic Development
Corporation," "Economic Development," and "Local Economic
Development."
4.Establishes the Business, Transportation and Housing
Agency as the primary state agency responsible for
facilitating economic development in the state, and
direct the agency to work with federal, state, local, and
international public and private entities in meeting this
responsibility.
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5.Creates the California Economic Development Fund for the
purpose of receiving federal, state, local, and private
economic development funds and receiving repayment of
loans or grant proceeds and interest on those loans and
grants.
6.Specifies that upon appropriation, moneys in the fund may
be expended by the Secretary to provide matching funds
for loans and grants to public agencies, nonprofit
organizations, and private entities, and for other
economic development purposes, consistent with the
purposes for which the moneys were received.
7.Authorizes the Secretary of Business, Transportation, and
Housing Agency to administer the federal EDAA grant
program and to assign and contract administration to a
joint powers agency.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/17/07)
California Association of Local Economic Development
(source)
California Community Economic Development Association
CHARO Community Development Corporation
City of Ceres
City of Eureka
City of San Mateo
City of Santa Rosa
City of Selma
City of Taft
City of Vista
Claggett Wolfe Associates
Economic Development Corporation
Tulare County Economic Development Corporation
ARGUMENTS IN SUPPORT : The California Association of
Local Economic Development states that the federal Economic
Development Administration awarded a grant to California to
assist business expansion in economically distressed areas
of the State. However, with the elimination of the TTCA,
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the EDAA program is not being actively managed and that
loan repayments are not being utilized for the purpose they
were originally intended. They indicate that this bill is
needed to remove an obsolete reference in the Government
Code, define and or redefine economic development terms
consistently, and to reactivate an existing grant program.
ASSEMBLY FLOOR : 72-0, 5/10/07
AYES: Adams, Aghazarian, Arambula, Bass, Beall, Benoit,
Berg, Berryhill, Blakeslee, Brownley, Caballero, Charles
Calderon, Carter, Cook, Coto, Davis, De La Torre, De
Leon, DeSaulnier, DeVore, Duvall, Emmerson, Eng, Evans,
Feuer, Fuller, Gaines, Galgiani, Garcia, Hancock,
Hayashi, Hernandez, Horton, Houston, Huff, Huffman,
Jeffries, Jones, Karnette, Keene, Krekorian, La Malfa,
Laird, Leno, Levine, Lieber, Ma, Maze, Mendoza, Mullin,
Nakanishi, Nava, Niello, Parra, Plescia, Portantino,
Price, Richardson, Salas, Saldana, Silva, Smyth, Solorio,
Spitzer, Strickland, Swanson, Torrico, Tran, Villines,
Walters, Wolk, Nunez
NO VOTE RECORDED: Anderson, Dymally, Garrick, Lieu, Sharon
Runner, Ruskin, Soto, Vacancy
JJA:nl 7/18/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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