BILL NUMBER: AB 1072AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 27, 2011 AMENDED IN ASSEMBLY MARCH 31, 2011 INTRODUCED BY Assembly Member Fuentes FEBRUARY 18, 2011 An act to add Article 9 (commencing with Section 12092) to Chapter 1 of Part 2 of Division 3 of Title 1 of the Government Code, relating to community development. LEGISLATIVE COUNSEL'S DIGEST AB 1072, as amended, Fuentes. Community development: California Promise Neighborhoods Initiative. Existing law provides for various community development programs in the state. Executive Order S-05-10 created the Office of Economic Development in the Governor's office, for the purpose of coordinating economic development activities in the state. This bill would establish the California Promise Neighborhoods Initiative in the Office of Economic Development. It would require the office to establish 40 promise neighborhoods throughout the state, according to specified criteria, to maximize collective efforts within a community to improve the health, safety, education, and economic development of each neighborhood. It would require the office to use existing state resources and federal funds to implement these provisions, and authorize the office to accept financial support from other public or private sources for these purposes. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares as follows: (a) California continues to endure an unprecedented economic and educational crisis that will have continuing ramifications on the health, safety, education, and economic development of the most underserved communities. (b) The Harlem Children's Zone in New York has demonstrated the lasting benefits of developing a network of support services to revitalize an entire community focusing on the social, health, and educational development of children. (c) The federal Promise Neighborhoods Initiative, inspired by the Harlem Children's Zone, seeks to develop a cradle-to-career pipeline of support services in specific neighborhoods that will transform communities. (d) Central to the development of the Harlem Children's Zone and the federal Promise Neighborhoods Initiative has been the use of data to drive real-time decisionmaking and program improvement. (e) More than 42 communities in California applied for the federal Promise Neighborhoods Initiative grant. The three California communities of Hayward, Pacoima, and Pico-Aliso were among the 21 communities selected nationwide. (f) Many of the communities that were not selected by the federal government continue to work on developing community plans, given that cross-community planning provides lasting benefits in aligning and maximizing resources in a given community. (g) Establishing a network of services to serve specific families breaks down many unnecessary barriers and silos in the effective delivery of programs and services. (h) The alignment of local, state, and federal resources can maximize existing dollars and better serve specific communities. SEC. 2. Article 9 (commencing with Section 12092) is added to Chapter 1 of Part 2 of Division 3 of Title 1 of the Government Code, to read: Article 9. California Promise Neighborhoods Initiative 12092. (a) The California Promise Neighborhoods Initiative is hereby established in the Office of Economic Development in the Governor's office to develop a system of promise neighborhoods throughout the state to support children's development from cradle to career. (b) (1) The purpose of the promise neighborhoods shall be to maximize collective efforts within a community to improve the health, safety, education, and economic development of each neighborhood. (2) Participation by local agencies in the initiative shall be voluntary. (c) Commencing July 2012, the office shall develop an application process for eligible entities to apply for sites to become promise neighborhoods pursuant to this article. (d) (1) The office shall establish 40 promise neighborhoods by January 1, 2014. Except as provided in paragraph (2), the office shall select promise neighborhoods from applicants that meet eligibility criteria set forth in Section 12093, have developed cross community plans, and have established alignment of resources with local cities and counties. (2) The three communities selected for the federal Promise Neighborhoods Initiative, Hayward, Pacoima, and Pico-Aliso, shall be included among the 40 promise neighborhoods established pursuant to paragraph (1). (e) (1) The office shall work with the State Department of Education, the Employment Development Department, the California Health and Human Services Agency, the Business, Transportation and Housing Agency, the California Children and Families Commission, the California Community Colleges, the California State University, the Student Aid Commission, the Department of Parks and Recreation, and at its option, the University of California, in implementing this article. (2) The office shall work with the agencies described in paragraph (1) to identify programs and opportunities for grants suitable for prioritization in promise neighborhoods. (f) The office shall work with promise neighborhood designees to use the federal new markets tax credit program as an opportunity to incentivize the creation of additional public-private partnerships in promise neighborhoods.(f)(g) The office shall use existing state resources and available federal funds to implement this article. If state or federal funds are not available or sufficient, the office may apply for and accept grants and receive donations, and other financial support from public or private sources for purposes of this article. 12093. (a) A nonprofit organization that meets the requirements of this section is eligible to apply for designation of a neighborhood in which it operates as a promise neighborhood pursuant to this article. (b) An eligible applicant shall have at leastoneall the following partners as part of its application: (1) Another community organization. (2) A child development organization. (3) A school district. (4) A postsecondary institution. (5) A city. (6) A county. (7) Business or industry. (c) An eligible applicant shall have a cross-community plan. (d) An eligible applicant shall establish geographic boundaries for the promise neighborhood. The geographic area shall meet at least all of the following criteria: (1) Contain one or more high schools and feeder schools, andhave low high school graduation rates.(2) Have high poverty rates.(3)Have high unemployment.have graduation rates below 70 percent. (2) Have unemployment rates higher than the state as a whole. (3) Have more than 25 percent of families with annual incomes below fifteen thousand dollars ($15,000).