Update From the CAEZ Meeting

I spent yesterday in Sacramento with the CAEZ folks. The most important updates came from our guests from HCD and legislators' offices.

Mark Maldonado of HCD brought the group up to speed on the new organization of SEEDS (State Enterprise and Economic Development Section), something one could have read about here quite some time ago.

• On the voucher regulations front, Mark expected that an internal draft of HCD responses to comments would be ready today. This has to go through some administrative channels before it can be released to the public, that could take a couple of weeks.
• The draft of the study of the zones commissioned by HCD is already done. This is currently going through those administrative channels in order to determine if/when it will be released.
• September 6 is the deadline for applications for new EZ designations. There are 23 slots that will be considered. Mark ventured a guess that he thinks there will be close to 40 applications. The list of communities applying will be made public after 9/6.
• Finally, HCD is working on a memo that will explain what will happen to zones that expire. This should be particularly fascinating. Mark expects it to be released "this month."

On the legislative front the focus was on SB 1008. We heard presentations from Colin Grinnell, legislative aide to Senator Machado, and from Toni Symonds, Chief Consultant to the Assembly Committee on Jobs, Economic Development and the Economy. Colin explained that work is currently being done to formulate amendments to the bill that will incorporate Assemblyman Arambula's recommendations and take into account CAEZ's responses to those recommendations. There are some other voices involved in the process as well, but Colin thought that there was still a possibility to get a bill to the Governor by June.

Ms. Symonds elaborated on the time frame and explained that the schedule is in fact quite tight. I inferred from her comments that the Jobs Committee does not feel that it is being included in the amendment negotiations to the degree necessary. Unless corrected, this could lead to an undesirable situation where a competing bill might be introduced.

It was also clear from the discussion that the California Budget Project report is making its way around the Capitol.