JEDE COVID-19 Update for May 22, 2020

MAJOR COVID-19 ANNOUNCEMENTS

ECONOMIC RECOVERY

  • Manufacturing Response and Recovery Initiative:  The Assembly Committee on Jobs, Economic Development, and the Economy sent recommendations to the Governor on how to jump-start the state’s economic recovery and to become better prepared to protect the health and safety of Californians in the future.  The JEDE Committee called for the establishment of a Manufacturing Response and Recovery Initiative (MRR Initiative), which includes integration of manufacturing and supply chain considerations into state emergency planning, as well as five key program actions to address the coronavirus emergency now and put the state on a solid track to recovery.  [The letter is attached.]  The release of the letter coincides with the JEDE Committee’s unanimous passage of several economic recovery bills, including:

    • AB 3101 (B. Rubio and Cervantes)This bill establishes a New Market Tax Credit to spur private investment in small businesses located in low-income neighborhoods.  Funding for the tax credit could be carved out from the existing California Competes Tax Credit, as recommended in the MRR Initiative.  The bill responds to the growing income disparities individuals from historically underinvested communities face and which the coronavirus emergency have laid bare. 

    • AB 3307 (E. Garcia and Cervantes as authors, and all JEDE members as co-authors):  This bill authorizes the establishment of the California Manufacturing Disaster Direct Loan and Loan Guarantee Program for the purpose of attracting, retaining, retooling, establishing, and expanding manufacturing and logistics capacity to meet the needs of California.  The bill responds to the current lack of domestic production in key areas and the need to pivot existing manufacturers to new and expanded lines of production.

  • Housing Bill Package to Spur Economic Recovery:  Senate Democrats unveiled a package of legislation today intended to bolster production of new housing and remove existing barriers by further streamlining the development process.  The housing production package includes the following bills:

    • SB 902 (Wiener):  This bill allows local governments to pass a zoning ordinance that is not subject to CEQA for projects that allow up to 10 units, if they are located in a transit-rich area, jobs-rich area, or an urban infill site. *As proposed to be amended on May 20, 2020.

    • SB 995 (Atkins):  This bill would expand the application of streamlining the CEQA process to smaller housing projects that include at least 15% affordable housing. It also would broaden application and utilization of the Master Environmental Impact Report (MEIR) process, which allows cities to do upfront planning that streamlines housing approvals on an individual project level. The bill would extend and expand a program that has generated 10,573 housing units and created nearly 47,000 jobs since 2011.

    • SB 1085 (Skinner):  This bill would enhance existing Density Bonus Law by increasing the number of incentives provided to developers in exchange for providing more affordable housing units.  

    • SB 1120 (Atkins):  This bill would encourage small-scale neighborhood development by streamlining the process for a homeowner to create a duplex or subdivide an existing lot in all residential areas. Such applications would be required to meet a list of qualifications that ensure protection of local zoning and design standards, historic districts, environmental quality, and existing tenants vulnerable to displacement.

    • SB 1385 (Caballero):  This bill would unlock existing land zoned for office and retail use and allow housing to become an eligible use on those sites. It also would extend the state’s streamlined ministerial housing approval process to office and retail sites that have been vacant or underutilized for at least three years.

  • Health and Safety Re-Opening Poster:  California Manufacturing and Technology Association created a poster to support the safe re-opening of manufacturing facilities.  The post includes important reminders for employees regarding self-screening and facility mitigation efforts during COVID-19.  A Spanish-language poster is under development.  Copy of poster:  https://www.cmta.net/multimedia/cmta_covid19_11x17_poster_english.pdf

  • Federal Regulatory Action:  President Trump issued an executive order (issued May 19, 2020) that instructs the head of every federal agency to remove any regulations that threaten economic recovery.  “The heads of all agencies shall identify regulatory standards that may inhibit economic recovery and shall consider taking appropriate action, consistent with applicable law, including by issuing proposed rules as necessary, to temporarily or permanently rescind, modify, waive, or exempt persons or entities from those requirements, and to consider exercising appropriate temporary enforcement discretion or appropriate temporary extensions of time as provided for in enforceable agreements with respect to those requirements, for the purpose of promoting job creation and economic growth, insofar as doing so is consistent with the law and with the policy considerations identified in section 1 of this order.”  https://www.whitehouse.gov/presidential-actions/executive-order-regulatory-relief-support-economic-recovery/

  • Re-Opening Orange County Businesses:  The Orange County Business Council reports that 25 Orange County business organizations are asking the County to re-open and to prioritize CARES “Act funding -- whatever it takes -- to implement measures and programs required to support your efforts for early reopening and allow for state certification as required by the Resilience Roadmap with a local variance attestation.”

  • Tax Exempt Bonds:  The Council of Development Finance Agencies is leading a coalition that is urging Congress to improve tax-exempt bonds provisions. The group believes that bonds are a critical economic recovery tool.

BUDGET ACTIVITIES RELATED TO ECONOMIC RECOVERY

  • Assembly Budget Subcommittee 4 Hearing:  Assembly Budget Subcommittee 4 began hearing the May Revision Budget.

  • Small Business Budget Items:  The JEDE Committee has tracked over 500 support letters/signatories from small business owners and nonprofit organizations serving the needs of small businesses, including the $50 million for the Small Business Loan Guarantee Program, the $20 million for the state’s network of technical assistance centers, the retention of the Earned Income Tax Credit, and the retention of the waiver of the $800 minimum franchise tax for small and medium size business during their first year of businesses.

  • Opposition to CA Budget Proposal on Paid Family Leave:  56 business organizations submitted a letter to the Governor and Budget Committee opposing the proposed Paid Family Leave budget trailer bill, as included within the Governor’s May Revision Budget.

COVID-19 PROGRAM UPDATES

  • Help with EDD:  the California Employment Development Department prepared a video overview of benefit programs available for Californians impacted by COVID-19 and tips for navigating their website. Watch video here. https://www.youtube.com/watch?v=DEQBmpkgEQ0

GRANTS

  • Grants for Financial Literacy:  The Department of Business Oversight announced that it will begin accepting applications on July 1 for CalMoneySmart, a grant program created by Senate Bill 455 (Ch. 478, Stats. 2019).  Applicants can apply for grants of up to $100,000 to develop and deliver free financial education and empowerment programs to help unbanked and underbanked communities.  https://dbo.ca.gov/calmoneysmart/

SURVEYS, DATA, AND ANALYSES

 Economic Impact Payments, totals by State

State

Total Number of EIP Payments

Total Amount of EIP Payments

Arizona

3,242,043

$       5,573,167,261

California

16,869,636

$     27,897,283,972

Colorado

2,605,089

$       4,407,408,401

Florida

10,618,792

$     17,546,164,251

Georgia

4,763,109

$       8,081,253,826

Illinois

5,729,351

$       9,630,495,809

Indiana

3,174,698

$       5,613,824,661

Maryland

2,692,062

$       4,380,831,484

Massachusetts

3,136,787

$       5,028,963,151

Michigan

4,813,156

$       8,286,614,929

Minnesota

2,613,771

$       4,577,086,990

Missouri

2,933,973

$     5,118,911,639

New Jersey

3,955,396

$       6,507,621,505

New York

9,341,632

$     15,034,060,259

North Carolina

4,820,974

$       8,264,415,092

Ohio

5,828,477

$       9,833,041,489

Oregon

2,031,861

$       3,425,278,483

Pennsylvania

6,258,107

$     10,596,406,088

South Carolina

2,443,864

$       4,174,979,940

Tennessee

3,305,606

$       5,693,071,645

Texas

12,396,590

$     21,635,810,592

Virginia

3,796,975

$       6,447,589,217

Washington

3,453,810

$       5,876,091,642

Wisconsin

2,817,912

$       4,948,382,340

Foreign Addresses

748,724

$    1,222,795,510

 

 

 

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