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AB 106 (Salas) — Assembly Committee on Jobs, Economic Development, and the Economy (April 27, 2021)

Summary

Analysis of AB 106 (Salas), Regions Rise Grant Program, for the April 27, 2021 hearing of the Assembly Committee on Jobs, Economic Development, and the Economy, Sabrina Cervantes, Chair. It says the bill establishes a competitive grant program, administered by the Governor's Office of Planning and Research (OPR), to support regional collaboration among public and private sector stakeholders. It states that concerns were initially raised by some stakeholders that the bill appeared to designate official spokespeople for regions, and that amendments have been proposed to clarify the role of regional collectives. Registered support lists organizations such as the Bay Area Council, the City of El Centro and the Fresno Business Council; opposition is None on File.

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“AB 106 (Salas) — Assembly Committee on Jobs, Economic Development, and the Economy (April 27, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-04-27-ab-106-jede-analysis-56196cffa0/, SHA-256 6e64a867033765afe41fe8cf7745ba32db10ad13e2fb5fbfdaabc3b6819075cd.

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                                                                                                  AB 106
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Date of Hearing: April 27, 2021

   ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
                            Sabrina Cervantes, Chair
                   AB 106 (Salas) – As Amended April 20, 2021

SUBJECT: Regions Rise Grant Program

POLICY FRAME: The individuals most impacted by the coronavirus emergency are also California’s
most economically vulnerable. As income disparities have grown, these individuals from historically
underinvested communities face even greater social-economic challenges. Research shows that the
inequality between the residents in low-income communities and those that reside in California’s most
affluent communities has dramatically increased in the past several decades. For example, the pretax
income among the highest 1% of California taxpayers increased from 9.82% in 1980 to 25.1% of total
income in 2013. During the last seven years, the pace of these disparities has only increased.
AB 106 establishes a competitive grant program to support regional collaboration among public and
private sector stakeholders to address and resolve significant community development issues which
currently impede inclusive economic growth and upward mobility for historically marginalized groups.

The analysis includes information on the growing income disparities among Californian regions and
population groups, regional approaches to increasing economic security, and related legislation. Concerns
were initially raised by some stakeholders that the bill appeared to designate official spokespeople for
regions by virtue of receiving a grant. As this was not the intention of the author or sponsor, amendments
have been proposed to clarify the role of regional collectives and better align their work with local
governments. The recommended amendments are outlined in Comment 6.

SUMMARY: AB 106 establishes the Regions Rise Grant Program, administered by the Governor’s
Office of Planning and Research (OPR), for the purpose of supporting inclusive, cross jurisdictional, and
innovative processes that lead to inclusive strategies to address barriers and challenges confronting
communities in creating economic prosperity for all. Specifically, this bill:

1) Legislative Findings: Makes a series of legislative findings:
   a) Growing inequality, which disproportionately affects communities of color, and the erosion of
      upward mobility in California calls for state policy to be intensely focused on increasing economic
      opportunity and security for all Californians.
   b) The COVID-19 pandemic has hit certain populations harder than others and exposed more clearly
      the vulnerabilities in our communities. State policy and investments should address not only the
      economic impacts of the COVID-19 pandemic, but the structural inequities plagued by gender,
      race, ethnicity, income, and occupation.
   c) The need to address regional inequities calls for a collaborative, community-engaged process that
      reflects shared decision-making and power. There needs to be greater support for capacity building
      of historically underserved communities and disenfranchised groups to meaningfully participate in
      those cross-sectoral regional initiatives in every step of the process.
   d) There is also a need to create a state program that provides competitive grants for
      multijurisdictional collectives that involve local and regional governments, labor, community-
      based organizations, and private and civic organizations covering locally defined economic
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       regions to adopt a comprehensive shared prosperity strategy with a focus on the priority challenges
       of the respective region.

2) Creation of Program: Establishes the Regions Rise Grant Program, within OPR, for the purpose of
   supporting inclusive, cross-jurisdictional, and innovative engagement processes that lead to inclusive
   strategies to address barriers and challenges confronting communities in creating economic prosperity
   for all.

3) Eligible Applicants: Limits eligible applicants to only those regional collectives that meets all of the
   following requirements:
   a) Consists of at least one government agency, one local business, one educational or workforce
      entity, one economic development entity, and two nonprofit organizations working on behalf of
      social and racial justice.
   b) Brings together a diverse set of sectors and anchor institutions with the leadership of trusted
      intermediaries to establish a coalition representing all regional interests that is ready to develop
      and implement a set of strategies that are supported across the community.
   c) The primary mission of the regional collective is the creation of a plan for equitable and
      sustainable economic development.

   d) The partners of the regional collective are representatives of the region’s diverse demographic
      makeup, key industries, city and county governments, local economic development and planning
      practitioners, councils of governments, private businesses, educational and workforce partners,
      labor, and nonprofit and philanthropic organizations. The bill describes a diverse demographic
      makeup including, but is not limited to, Black, Indigenous, Latino, Asian, women, and individuals
      who identify as being a member of the LGBTQIA community.

4) Inclusive Community Mandates: As a condition of funding, a regional collective agrees to do both
   of the following:
   a) Establish a steering committee that is inclusive of historically underrepresented persons and
      representative of the membership of the region.
   b) Establish an inclusive public process for community residents, including underserved,
      disadvantaged, and rural populations, to identify, prioritize, and vote on strategies and priorities.

5) Competitive Awards: Requires OPR to develop and implement a process for the awarding of
   competitive grants to eligible applicants meeting the requirements pursuant to this article. At a
   minimum the process shall meet all of the following conditions:
   a) Eligible activities shall include funding to support regional collectives initiating, expanding, or
      sustaining regional convenings and planning activities.
   b) Funds awarded pursuant to this program shall be available to the successful applicant for a period
      of three years.
   c) Applications with overlapping geographic boundaries may be funded if, in the determination of
      the director, the regional issues and challenges being addressed in the applications are sufficiently
      distinct.
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6) Content of the application: Requires the application to include, at a minimum, each of the
   following:
   a) Identification of how the funding is to be used to facilitate the resolution or mitigations of one or
      more regional issues and challenges, including information on why and how an inclusive, cross-
      jurisdictional, and innovative process is best suited to address these challenges and result in
      greater economic prosperity for all.
   b) Identification of the principal agency or intermediary organization that shall be the main point of
      contact with the office.
   c) Identification of the members of the steering committee, required by subdivision (b) of Section
      66302, with documentation of how the steering committee members represent historically
      underrepresented persons within the region and the region’s demographic makeup, key industries,
      city and county governments, council of governments, private businesses, educational and
      workforce partners, and nonprofit and philanthropic organizations. A commitment letter by each
      member of the steering committee shall accompany the application.
   d) A letter from each member of the regional collective documenting their participation in the
      regional collective and participation in the activities proposed in the application. If the member is
      also a member of the steering committee, these letters shall be combined.

   e) To the extent possible, a commitment to find funds to match nonstate funds. If matching funds are
      not available, the applicant shall include a statement documenting the reason for the lack of
      matching funds.
   f) Letters of support from local government agencies, councils of governments, nonprofit
      organizations, private businesses, education partners, organizations representing communities of
      color, and philanthropic organizations that indicate a significant threshold of community support
      for the application.
   g) A commitment to collect and share data, as required by the office, that can help inform as to the
      effectiveness of the grant dollars in building strategies for regional prosperity and to hold partners
      accountable for progress.
   h) A plan for an inclusive, transparent community-driven process where residents who will be
      affected may identify, prioritize, and vote on priorities. This includes demonstrated capacity of the
      regional collective to directly engage and financially assist community members in meaningfully
      contributing to the design of an inclusive economic development roadmap.
   i) A list of key deliverables during the grant period.

7) Program Priorities: Requires GO-Biz to provide priority to applications that come from regions that
   are able to demonstrate all of the following:
   a) The need for cross-sectoral and cross-jurisdictional solutions to the demonstrated key regional
      challenges.
   b) The readiness and capacity to support rural, disadvantaged areas, or underserved population
      groups.
   c) The assessment of key deliverables and the potential of the initiative to make system changes that
      can be operationalized based on success stories and best practices.
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8) Funding Trigger: Requires OPR to implement the program upon appropriation of funds by the
   Legislature for the purpose of implementing program, as specified.

9) Regional Collective Reporting: Requires each regional collective receiving funding to submit an
   annual and a final report detailing the regional issues analyzed, priorities identified, strategies
   developed to address regional issues, and plans to implement priority efforts. In addition, the bill:
   a) Requires the report to document how the regional collective engaged with community residents on
      a regular basis to review and guide the activities funded by this grant.
   b) Requires, to the extent that plans produced “touch” on issues of transportation or land use, the
      report must show how those portions of the report are aligned with long-term transportation and
      land use plans of regional agencies, including strategy plans for sustainable communities.
   c) Requires community residents to be engaged in the preparation of the report, as specified.
   d) Requires a copy of the annual and final report be provided to each city and county within the
      region, as specified.

10) Benchmarks, Metrics, and Outcomes: Requires the regional collective to adopt a transparency and
    accountability tool to help track the progress of regional economic development strategies and track
    equity activities and mobility outcomes.

11) Sharing Outcomes and Recommendations: Requires OPR to create a process for issues,
    recommendations, and regional priorities identified through the collaborative work funded by the
    program to be brought forward to the Governor, the Legislature, and any other relevant agency,
    including the Department of Housing and Community Development. This information shall be
    considered in the development and recommended actions of related state functional plans, strategies,
    and investments.

12) Definitions: Defines a number of terms:
   a) “Region” means a geographic area composed of one or more counties and cities that form a
      functional economy. A region may be a metropolitan statistical area, as established by the United
      States Office of Management and Budget, or by an area of an existing regional government,
      including, but not limited to, a council of governments.
   b) “Eligible applicant” means a regional collective composed of a diverse set of public and private
      stakeholders who organize themselves around one or more community challenges or priorities
      impacting a region and meet certain other program requirements. The bill also:
       i) Specifies that a “diverse set of public and private stakeholders” may include cities, counties,
          local agencies, including joint powers agencies, elected officials, private businesses, including
          small business enterprises owned by people of color, educational entities, social enterprises,
          nonprofit, labor, community-based organizations, census coalitions, and individuals.
       ii) Requires the regional collective to have as one of its primary missions to work with and on the
           behalf of disadvantaged and underserved communities.

EXISTING LAW

1) Establishes OPR for the purpose of assisting the Governor and the Administration in planning,
   research, policy development, and legislative analysis. In addition:
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   a) OPR formulates long-range state goals and policies to address four key areas: land use and
      planning, climate risk and resilience, sustainable economic development, and targeted long-range
      research needs.
   b) OPR also acts as the state's liaison to a variety of entities including local and regional government,
      planning professionals, small business, and the US Department of Defense.

2) Establishes the California Strategic Growth Council (SGC) to coordinate and work collaboratively
   with public agencies, communities, and stakeholders to advance healthy, thriving, and resilient
   communities for all. In addition, the SGC:
   a) Integrates state, regional, and local efforts to reduce greenhouse gas emissions, increase the
      availability of affordable housing located near jobs, services, and green space, conserve
      agriculture lands, promote public health, and advance racial equity.
   b) Administers the following grant programs: Affordable Housing and Sustainable Communities,
      Transformative Climate Communities, Sustainable Agricultural Lands Conservation, Climate
      Change Research–all of which are part of the California Climate Investments Program, funded by
      proceeds from the State’s cap-and-trade auction revenues.
   c) Reviews the State’s 5-Year Infrastructure Plan and contributes to interagency efforts to promote
      sustainability, equity, and resilience in State investments.

FISCAL EFFECT: Unknown

COMMENTS & CONTEXT:

1) Growing Income Inequality: In the pre-coronavirus economy, California’s dominance in
   innovation-based industries was unquestionable, however, even with 120 months of uninterrupted
   economic growth, the divide between the middle and lower income households and the top income
   earners was accelerating. The coronavirus has only deepened California’s income inequality, with the
   state’s most vulnerable being at the greatest risk for poor health outcomes, having the least amount of
   savings to survive the economic impacts of the Stay-at-Home Order, and being most likely to work in
   low-paid and least protected essential businesses.

   According to April 2020 research by the McKinsey Institute, 57 million jobs are at risk in the US due
   to the necessary, but extreme, steps that are taking place to stop the spread of the coronavirus. In
   California, McKinsey estimates that certain sectors will be more severely impacted than others. As
   examples of sectors with the highest vulnerability, in the accommodation and food service sector, an
   estimated 1.6 million jobs are at risk (95% of all jobs in the sector), and, in the arts and entertainment
   sector, 287,000 jobs (87% of all jobs) are at risk. The economic impacts are, however, much more
   widespread. The McKinsey Institute reports that 48% of jobs in the construction sector, 49% of jobs
   in real estate, and 37% of jobs in manufacturing are at risk, to name only a few sectors identified as
   having more than 30% of their jobs at risk.

   In addition to losing their jobs, many of these impacted workers have little formal education beyond
   high school and possibly a few additional years of higher education course work and/or occupational
   training. In the last recession, individuals without four-year degrees faced the greatest challenges in
   becoming reemployed and remained unemployed for significantly longer time periods.
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2) The Challenge of Income Inequality during COVID-19: While California’s dominance in
   innovation-based industries is unquestionable, the divide between the middle- and lower-income
   households and the top income earners is accelerating. Even when California’s unemployment was at
   historic lows pre-pandemic, unemployment within certain geographic regions and population groups
   remained significantly higher, as did the number of people in the state who were not participating
   within the core economy. In March 2020, California reported an unemployment rate (not seasonally
   adjusted) of 5.1% as compared to the US rate of 4.5%. From the employment side, this represents 18.1
   million people in California, with (according to 12-month moving average) 82.5% being employed in full
   time work.

   The State of California Economic Development Department, in March 2020 ( not seasonally adjusted),
   reported three of California’s 58 counties had unemployment below 3.0%, with San Mateo County
   reporting the lowest at 2.5%. The highest unemployment was reported in Colusa (21.4%). Year-over
   (March 2019- March 2020), three counties experienced an unemployment rate decline, three counties
   experienced no change in unemployment rate and 52 experienced unemployment rate increases from
   the prior year.

   Chart 1 – Selected Data on Unemployment shows unemployment-related information by selected
   counties and population groups for a time period that includes COVID-19, March 2020 to March
   2021.

    Chart 1 - Selected Data on Unemployment (2020-2021)
                             Unemployment      Unemployment                    Unemployment      Unemployment
                             Rate              Rate                            Rate              Rate
                             March             March                           March             March
                             2020              2021                            2020              2021
                             (Not Seasonally   (Not Seasonally                 (12-month         (12-month
                             Adjusted)         Adjusted)                       moving            moving
                                                                               average)          average)

    California               5.1%              8.2%              California    4.1%              11.1%

    Colusa County            21.4%             15.4%             Blacks        5.2%              13.9%

    Imperial County          20.4%             15.7%             Hispanics     4.7%              12.5%

    Los Angeles County       5.6%              10.9%             Whites        4.0%              10.8%
                                                                 16 to 19
    Riverside County         4.7%              7.7%                             15.1%              24.5%
                                                                 years old
                                                                 20 to 24
    Sacramento County        4.3%              7.4%                             7.6%               17.5%
                                                                 years old
                                                                 25 to 34
    San Bernardino County    4.4%              7.8%                             4.1%               11.7%
                                                                 years old
    San Luis Obispo County   3.5%              5.8%              *The Employment Development Department
                                                                 reports a March 2021 (12-month moving average)
    San Mateo County         2.5%              5.0%              Labor Participation Rate (LPR) of 60.2% with
                                                                 12.4 million people in California representing
                                                                 those who were not participating in the workforce
    Tulare County            13.2%             11.6%             (the remaining 38.8%). The
                                                                 LPR for veterans is 42.4% vs nonveterans LPR of
                                                                 63.3%.
                                                                                          Source: www.edd.ca.gov
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In March 2021, California was reported to have an unemployment rate (not seasonally adjusted) of 8.2%
as compared to the US rate of 6.2%. From the employment side, this represents 17.3 million people,
with (according to 12-month moving average) 83.0% being employed in full time work.

During this same period of time, only three of California’s 58 counties had an unemployment rate (not
seasonally adjusted) below 5.5%, with Marin County reporting the lowest at 4.8%. The highest
unemployment was reported in Imperial (15.7%). Year-over (2020-2021), 46 counties experienced
unemployment rate rises, and 11 experienced unemployment rate decreases; moreover, one county
had its unemployment rate stay the same (Lassen County).

Looking more specifically at different population groups, the data ( 12-month moving average) also show
great disparities between the statewide rate of 11.2% and the rates of key subgroups, including
unemployment among Blacks and Hispanics being 13.9% and 12.5% respectively. For the youngest
members of the workforce, obtaining quality jobs remains a significant issue, with unemployment
among 16- to 19-year-olds and 20- to 24-year-olds being well above the state average, ranging from
24.5% to 17.5% respectively. According to the March 2021 figures, 12.4 million people in California
are not participating in the labor force, an increase of 596,000 individuals during a 12-month period.

The disparities shown in these charts are driven by and also influence a range of economic and
societal issues, including, but not limited to, minimal educational attainment, economic insecurity,
poor health outcomes, negative engagements with law enforcement, and lack of a safety net for the
elderly and individual with special needs. COVID-19 magnified these effects, further putting strains
on already struggling low-wage workers, particularly in the Black and Latinx communities.

The California Latino Economic Institute released a new policy brief in December 2020, which
provides new data on the disparate and growing negative impact of COVID-19 on Latinos in
California. Among other findings, the briefing noted the following:
   Latinos are overrepresented among California’s COVID-19 cases and deaths—59% of cases and
    49% of the state’s deaths.
   Latino overrepresentation in California’s cases has increased since April 2020.
   Nearly 12% of California Latinos are currently uninsured—double the rate of other groups.
   Latino unemployment rates are double those from the same time last year.
   Nearly two-thirds of California Latinos report experiencing a loss of employment income since
    March 2020.
   Over 40% of Latinos currently report that it is somewhat or very difficult to pay their usual
    household expenses in the last 7 days.
   Over three-quarters of California small business owners report that COVID-19 has had a moderate
    to large effect on their businesses.

There are a number of reasons that contribute to the disparate health impacts of COVID-19, including
economic differences. Latinos and Blacks are a significant component of the essential workforce.
While a majority of White workers have jobs that allow them to work from home and decrease
potential COVID-19 contacts, Latinos and Blacks, due to economic circumstances, have jobs in high-
risk environments.
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   The data shows income disparities are increasing, which is impacting a range of economic and societal
   issues. California is not unique in experiencing a rise in income inequality. National data show that
   while the top 1% of income households were significantly impacted by the recession, by 2017, annual
   revenues had risen to the highest levels ever. Between 1979 and 2017, the income for the top 1% of
   income households cumulatively rose by 157%.

3) Helping Communities become Investment Ready: The geographic targeting of economic and
   community development programs is based on the development principle that focusing significant
   incentives and other resources to lower income communities allows these communities to more
   effectively compete for new businesses, retain existing businesses, and stop or slow the spiraling
   effects of poverty and unemployment. Geographically targeted approaches to economic and
   community development are designed to result in increased tax revenues, higher rates of private
   investment, less reliance on public health and social services, and lower public safety costs.

   A central component of the state/region partnership model funded through the Regions Rise Grant
   Program is its potential to assist at-risk communities in stopping the downward spiral of poverty and
   (re)build communities with economic and social promise. In the last decade, there has been a renewed
   interest by institutional investors in identifying communities which have turned the corner and now
   represent unique economic opportunities. These communities are sometimes referred to by investors
   as emerging domestic markets (EDMs).

   EDMs are people, places, or business enterprises with growth potential that face capital constraints
   due to systematic undervaluation as a result of imperfect market information. While not every low
   income neighborhood in California is ready for private sector investment, many neighborhoods can
   become investment ready through effective partnerships between the nonprofit, private, and public
   sectors.

   The demographics of EDMs include minority- and women-owned firms, urban and rural
   communities, companies which serve low-to-moderate-income populations, and other small and
   medium-sized businesses. The increase in investor interest is driven, in part, by the recognition of the
   changing demographics in the US which are resulting in a significant increase in minority purchasing
   power and business development by minority-owned firms.

   Both the California Public Employees Retirement System (CalPERS) and the California State
   Teachers Retirement System adopted EDM investment goals for their entire portfolios. Under its
   California Initiative, which began in 2001 and focuses on historically underserved areas, CalPERS has
   directed and invested over $1 billion in 569 companies primarily located in California. California has
   no other similar program that could possibly outpace the volume of investments large institutional
   investors can make. Experience is showing that adopting policies and programs that support
   investment by institutional investors is sound economic policy.

4) Examples of Regional Approaches to Upward Mobility: In February 2019, the Assembly
   Committee on Jobs, Economic Development, and the Economy (JEDE) began a series of hearings
   examining how public and private sector initiatives were being used or could be used to support
   upward mobility, reduce racial disparities, and address climate change. Three primary themes
   emerged from these hearings, being the need to:
      Upskill individuals to meet market challenges;
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      Establish integrated and accountable governance structures to better support businesses, program
       and service providers, and individuals; and
      Remove barriers for start-ups, entrepreneurs, and expanding businesses, including manufacturers.

   In order to advance the JEDE Committee’s understanding of how sustainable and inclusive economic
   strategies can actually be implemented in the real world, a field hearing was conducted outside of the
   confines of the State Capitol, which highlighted regional initiatives in the Inland Empire. The keynote
   presentation by Dr. Karthick Ramakrishnan, Chair of the Center for Social Innovation at the
   University of California, Riverside, highlighted a number of regional initiatives being conducted
   within the Inland Empire. Among other initiatives presented, Dr. Ramakrishnan discussed Inland
   California Rising, an initiative he co-launched in February 2019 and which hosted summits in both of
   its partner regions, the Inland Empire and the San Joaquin Valley. The following is a selection of
   other initiatives discussed in the course of the hearing:
      GenerationGO/Vision2Succed: An initiative of San Bernardino County using its local workforce
       board as the facilitator. The purpose of GenerationGO is to connect K-12 schools, community
       colleges, and businesses to create and enhance career pathways and provide hands-on training.
       After several successful years, both the scope and geographic footprint are being expanded.
      Consortium for Excellence in Logistics: The mission of this initiative, facilitated by the Inland
       Empire Economic Partnership, is to leverage the region’s large number of warehouses and
       strategic location to position the Inland Empire as a supply chain and logistics hub. By fully
       embracing the leadership role, the consortium believes the Inland Empire can drive innovation
       within the sector resulting in economic growth and better paying jobs while still providing
       environmental and societal benefits.
      Inland Economic Growth & Opportunity (IEGO): This initiative, supported through the
       Community Foundation, is a network of business, government, educational, and nonprofit
       institutions, working to better align workforce and economic development efforts. Their objective
       is to increase high-paying quality jobs, increase opportunities for advanced manufacturing, and
       accelerate the growth of promising emerging industries (such as IT, cybersecurity, and battery
       storage).

   JEDE’s hearing aligned with Governor Newsom’s Region’s Rise Together, which was led by GO-Biz
   and supported by California Forward, the sponsor of this bill.

5) Roadmap to Shared Prosperity: This bill is an outgrowth of the California Economic Summit, a
   year-round collaboration of over 750 public and private stakeholders who annually meet to share their
   work, be inspired, and make plans for the following year’s activities. This important work is
   supported and facilitated by California Forward and the Roadmap to Shared Prosperity. The 2021
   Roadmap to Shared Prosperity outlined the California Economic Summit’s plans for a comprehensive
   agenda to address the state’s biggest challenges with a triple bottom line approach.
      Supporting the training and upskilling of workers within a strategic plan tied with the Commission
       on the Future of Work and efforts to increase worker engagement and empowerment.
      Creating the California Dream Index, a new scorecard for tracking the state’s progress toward
       improving economic mobility.
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      Issuing recommendations to guide Community Development Financial Institutions, governments,
       financial institutions, and other capital providers to help strengthen businesses by transforming
       pathways to capital and addressing social, racial, and institutional systemic issues.
      Advancing the implementation of a regional, scalable, data-driven prototype for employer
       engagement with community colleges meant to address systemic barriers students face in
       accessing work-based learning and job placement opportunities, while strengthening relationships
       between colleges, employers, industry associations and regional business intermediaries like local
       economic development corporations.

   A key issue in moving forward on this work was the limited capacity of regional collectives to sustain
   their valuable work. While many policy makers call for emphasizing interconnectivity, collaboration,
   and equity to help regions create economic recovery strategies in the wake of COVID-19, there are
   few public programs that support these activities. AB 106 establishes a grant program that would both
   help fund and elevate this work by

6) Proposed Amendments: Below is a list of amendments the committee members may wish to review
   when considering the bill.
   a) Clarify the organic nature of a regional collaborative, as compared to a regional council of
      government, joint powers of authority, or any quasi-governmental entity. Definition: A quasi-
      governmental organization is one that has some, but not all, of the defining characteristics of a
      government.
   b) Clarify that implementation of any aspect of the program is dependent upon funding being
      appropriated for this purpose.
   c) Requires funding to be awarded to selected regional collectives in phases. Following an initial
      amount of money, to initiate the activities in the grant proposal, subsequent allocations are to be
      based on the regional collaborative meeting pre-determined milestones.
   d) Requires a collaborative to have at least one local business organization participating. Current
      language is having one local business, while all the other members of the collaborative are
      organizations.
   e) Requires OPR to a post on its website:
       i) Copies annual reports and final reports submitted by the regional collectives.
       ii) Links to two or more free to access databases and platforms that regional collectives may use
           to select metrics, set baselines and benchmarks, and track outcomes.
   f) Requires the office to provide an annual report to the Legislature, beginning 12 months following
      funding becoming available, as specified. The first report shall identify the regional collectives
      selected, the purpose of their grants, including meters and milestones that will be used to track the
      success of the engagement. In the following reports shall report on the progress of each regional
      collective in meeting milestones.

7) Related Legislation: Below is a list of bills from the current and prior sessions.
   a) AB 29 (John A. Pérez, Feuer, and V. Manuel Pérez) Office of Business and Economic
      Development: This bill established GO-Biz to include the newly codified California Business
      Services and the existing Office of the Small Business Advocate. Status: Signed by the
      Governor, Chapter 475, Statutes of 2011.
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b) AB 27 (Parra) California Partnership for the San Joaquin Valley: This bill would have codified
   the establishment and operation of an up to 64-member California Partnership for the San Joaquin
   Valley for the purpose of improving the economic, social, and environmental conditions of the
   San Joaquin Valley. Status: Held on the Suspense File of the Assembly Committee on
   Appropriations, 2008.
c) AB 31 (Parra) California Partnership for the San Joaquin Valley: This bill would have created
   a 24-member California Partnership for the San Joaquin Valley (SJV) for the purpose of
   coordinating and improving state and federal efforts in the SJV, in concert with locally led efforts
   to improve the living standards and overall economic performance of the region. Status: Died on
   the Senate Floor, August 2006.
d) AB 119 (Assembly Budget Committee) Elimination of State Economic Strategy: This bill
   eliminated, commencing January 1, 2012, the responsibility of the Secretary of Labor and
   Workforce Development Agency to lead the preparation of a biennial California Economic
   Development Strategic Plan and to biennially convene an Economic Strategy Panel to provide
   recommendations regarding the plan. Status: Signed by the Governor, Chapter 31, Statutes of
   2011.
e) AB 358 (Greyson) Regional Economic Development Areas: This bill would have enacted the
   Regional Economic Development Area Act for the purpose of certifying regional economic
   development areas that include, but are not limited to, active and inactive military bases. Status:
   Died without action in Assembly Committee on Jobs, Economic Development, and the Economy,
   2018.
f) AB 742 (Cervantes) Office of Place-Based Strategies: This bill would have established the
   Office of Place-Based Economic Strategies within GO-Biz for the purpose of supporting local and
   regional economic development entities to access programs and implement place-based and other
   community- and neighborhood-level strategies. Status: Held in the Assembly Appropriations
   Committee, 2019.
g) AB 844 (Grayson) Contra Costs County Green Empowerment Zone: This bill establishes the
   Green Empowerment Zone for the Northern Waterfront area of the Counties of Contra Costa and
   Solano. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the
   Economy.
h) AB 906 (Cooley, Cervantes, Kiley) State Action Plan: This bill would have required the
   Governor’s Office of Business and Economic Development to take the lead in preparing a
   California Economic Development Strategy based on regional priorities. Status: Held in the
   Assembly Committee on Appropriations, 2019.
i) AB 1171 (Arambula) California Partnership for the San Joaquin Valley: This bill establishes
   the California Partnership for the San Joaquin Valley for the purpose of supporting regional
   collaboration among individuals and public and private entities committed to improving the
   quality of life in the San Joaquin Valley. Status: Pending in the Assembly Committee on Jobs,
   Economic Development, and the Economy.
j) AB 1233 (V. Manuel Pérez) State Economic & Workforce Development Strategy: This bill
   would have required GO-Biz to prepare a five-year Economic and Workforce Development
   Strategy. The blueprint will help the state set a strategic path forward by prioritizing and
   coordinating state activities, supporting local and regional economic development activities, and
                                                                                                  AB 106
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      better leveraging private and public sector resources. Status: Held in the Assembly Committee on
      Appropriations, 2012.
   k) AB 1274 (Arambula and Salas) California Partnership for the San Joaquin Valley: This bill
      establishes the California Partnership for the San Joaquin Valley for the purpose of supporting
      regional collaboration among individuals and public and private entities committed to improving
      the quality of life in the San Joaquin Valley. Status: Held in the Senate Committee on Business
      Professions, and Economic Development, 2020.
   l) AB 3205 (Salas) Regions Rise Grant Program: This bill establishes the Regions Rise Grant
      Program, administered by the Governor’s Office of Business and Economic Development, for the
      purpose of supporting inclusive, cross jurisdictional, and innovative processes that lead to
      inclusive strategies to address barriers and challenges confronting communities in creating
      economic prosperity for all. Status: Held in the Senate Committee on Appropriations, 2020.
   m) AB 2596 (Cooley, Kiley, Quirk-Silva) State Action Plan: This bill would have required the
      Governor’s Office of Business and Economic Development to take the lead in preparing a
      California Economic Development Strategy based on regional priorities. Status: Vetoed by the
      Governor. The veto message stated: “Since its inception, GO-Biz has expanded direct foreign
      investment, created opportunities for small businesses, identified incentives for growth, and
      helped resolve barriers for businesses navigating the government. These successes are due, in
      part, to the ability of GO-Biz to nimbly respond to rapidly changing economic factors including
      unpredictable federal decisions, natural disasters and more. I don’t believe an ongoing costly
      study and report will provide any additional benefit to these efforts.”

   n) SB 1230 (Umberg and Caballero) CDFI Grant and Tax Credit: This bill establishes the
      Community Development Financial Institutions Grant Program, administered by GO-Biz, and
      authorizes the California Department of Financial Institutions Tax Credit, as specified. Status:
      Pending in the Senate Committee on Business, Professions, and Economic Development.

REGISTERED SUPPORT / OPPOSITION:

Support

3core
Bay Area Council
Cal Asian Chamber of Commerce
California Economic Summit
California Edge Coalition
California Forward Action Fund
California Partnership for The San Joaquin Valley
California Travel Association (CALTIA)
City of El Centro
Csu Fresno, Office of Community and Economic Development
East Bay Leadership Council
Fresno Business Council
Fresno State Connect Initiative
Greater Bakersfield Chamber of Commerce
Imperial County Transportation Commission
Inland Empire Community Foundation
                                                                        AB 106
                                                                       Page 13

Inland Empire Economic Partnership (IEEP)
Kern Community Foundation
Local Government Commission
Los Angeles County Economic Development Corporation
Monterey Bay Economic Partnership
North Bay Leadership Council
Reach Central Coast
Sacramento Hispanic Chamber of Commerce
San Joaquin Valley Regional Broadband Consortium
San Joaquin Valley Rural Development Center
San Mateo County Economic Development Association (SAMCEDA)
Sierra Business Council
Sonoma County Economic Development Board
Stanislaus Community Foundation
Tahoe Prosperity Center
Unite-la, INC.
Valley Economic Alliance
Valley Vision
Western Riverside Council of Governments (WRCOG)

Opposition
None on File

Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090


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