(a) As used in this chapter, “state-designated cultural district” means a geographical area certified pursuant to this chapter with a concentration of cultural facilities, creative enterprises, or arts venues that does any of the following:

1. (1) Attracts artists, creative entrepreneurs, and cultural enterprises.
2. (2) Encourages economic development and supports entrepreneurship in the creative community.
3. (3) Encourages the preservation and reuse of historic buildings and other artistic and culturally significant structures.
4. (4) Fosters local cultural development.
5. (5) Provides a focal point for celebrating and strengthening the unique cultural identity of the community.
6. (6) Promotes opportunity without generating displacement or expanding inequality.

(b) The Arts Council shall establish criteria and guidelines for state-designated cultural districts. In executing its powers and duties under this chapter, the council shall do all of the following:

1. (1) Establish a competitive application system by which a community may apply for certification as a state-designated cultural district.
2. (2) Provide technical assistance for state-designated cultural districts from, among others, artists who have experience with cultural districts and provide promotional support for state-designated cultural districts.
3. (3) Collaborate with other public agencies and private entities to maximize the benefits of state-designated cultural districts.