Proposals support economic recovery, local economic development and small business

(SACRAMENTO) – Today, the Assembly Committee on Jobs, Economic Development, and the Economy, chaired by V. Manuel Pérez (D-Coachella), approved three bills at its first policy hearing of the 2012 legislative session.

“The policy proposals approved today all focus on the state’s economic recovery,” explained Pérez, “and they underscore the importance of improved coordination at different levels of government to best leverage private and public resources for community investment and job creation.”

AB 232 (V. M. Pérez) adds flexibility to the state rules governing the small cities portion of the federal Community Development Block Grant (CDBG) program. The measure will improve the state's ability to more quickly certify and award grant funding to local economic development projects across the state. The change will also bring the state rules into conformity with the federal law.

AB 643 (Davis) supports the development of new capital resources for businesses in low-income neighborhoods by creating a state version of the federal New Markets Tax Credit (NMTC) program. The NMTC program would authorize community development entities (CDEs) to serve as community and financial intermediaries between sources of private capital and low-income communities. The program would be funded with an unused portion of the Small Business Tax Credit allocation. A state credit enables California to more effectively leverage its federal NMTC funds, increasing capital investment in small businesses, a proven model for stimulating job creation.

AB 1233 (V. M. Pérez) requires the Director of the Governor's Office of Business and Economic Development 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 better leveraging of private and public sector resources.

To read the full text of the bills, go to www.leginfo.ca.gov.

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Assemblymember V. Manuel Pérez represents the 80th Assembly District that includes the communities of Blythe, Brawley, Calexico, Calipatria, Cathedral City, Coachella, Desert Hot Springs, El Centro, Holtville, Imperial, Indio, La Quinta, Palm Springs, and Westmorland.

Contact: Amy L. Wilson, 916-319-2080