Creative Economy Incentive Act.

Existing law, the Economic Revitalization Act, establishes the Governor's Office of Business and Economic Development, also known as "GO-Biz," to, among other duties, serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing state sales and use tax laws impose a tax on retailers measured by gross receipts on the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. These taxes are remitted to the California Department of Tax and Fee Administration. This bill would, until January 1, 2031, establish the Creative Economy Incentive Act, which would be administered by GO-Biz, for the purpose of providing financial support to any nonprofit organization, city, county, special district, or any politicalsubdivision of state or local government, including a department, agency, commission, district, joint powers authority, or a combination thereof for the purpose of assisting in financing a creative economy event, as defined. The bill would require an applicant to apply to GO-Biz for financial support pursuant to the program on an application that contains specified minimum information, including the adopted resolution of a county or city, if any, within the designated market area for the creative economy event evidencing that city's or county's commitment to contribute a portion of its respective local sales and use tax revenue or other local revenue as a local contribution to the creative economy event. The bill would require an applicant who receives financial support under these provisions to comply with specified reporting requirements and would require the office to complete a study of a creative economy event, as specified. The bill would require the office to form a steering committee to make recommendations to the office regarding the development of guidelines and the review of applications under these provisions. The bill would establish the Creative Economy Incentive Program Account, which, upon appropriation, would be used to carry out these provisions. The bill would require the office to annually prepare a report on its activities and outcomes under these provisions and submit the report to specified committees in the Senate and the Assembly on March 15 of each year, beginning with the year 2021. The bill would require the California Department of Tax and Fee Administration to transfer specified sales and use tax receipts correlated with a creative economy event into the Creative Economy Incentive Program Fund until an amount equal to the total amount of financial support funding awarded to the applicant for the creative economy event has been transferred.