BILL NUMBER: AB 2476	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member V. Manuel Perez

                        FEBRUARY 19, 2010

   An act to amend Sections 7072 and 7072.5 of the Government Code,
relating to enterprise zones.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2476, as introduced, V. Manuel Perez. Enterprise zones:
targeted employment area.
   The Enterprise Zone Act authorizes a governing body to include a
targeted employment area in an enterprise zone to encourage
businesses to hire eligible residents of certain geographic areas.
   This bill would modify the definition of a targeted employment
area.
   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.  Section 7072 of the Government Code is amended to read:

   7072.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Department" means the Department of Housing and Community
Development.
   (b) "Date of original designation" means the earlier of the
following:
   (1) The date the eligible area receives designation as an
enterprise zone by the department pursuant to this chapter.
   (2) In the case of an enterprise zone deemed designated pursuant
to subdivision (e) of Section 7073, the date the enterprise zone or
program area received original designation by the former Trade and
Commerce Agency pursuant to Chapter 12.8 (commencing with Section
7070) or Chapter 12.9 (commencing with Section 7080), as those
chapters read prior to January 1, 1997.
   (c) "Eligible area" means any of the following:
   (1) An area designated as an enterprise zone pursuant to Chapter
12.8 (commencing with Section 7070), as it read prior to January 1,
1997, or as a targeted economic development area, neighborhood
development area, or program area pursuant to Chapter 12.9
(commencing with Section 7080), as it read prior to January 1, 1997.
   (2) A geographic area that, based upon the determination of the
department, fulfills at least one of the following criteria:
   (A) The proposed geographic area meets the Urban Development
Action Grant criteria of the United States Department of Housing and
Urban Development.
   (B) The area within the proposed eligible area has experienced
plant closures within the past two years affecting more than 100
workers.
   (C) The city or county has submitted material to the department
for a finding that the proposed geographic area meets criteria of
economic distress related to those used in determining eligibility
under the Urban Development Action Grant Program and is therefore an
eligible area.
   (D) The area within the proposed zone has a history of
gang-related activity, whether or not crimes of violence have been
committed.
   (3) A geographic area that meets at least two of the following
criteria:
   (A) The census tracts within the proposed eligible area have an
unemployment rate not less than 3 percentage points above the
statewide average for the most recent calendar year as determined by
the Employment Development Department.
   (B) The county of the proposed eligible area has more than 70
percent of the children enrolled in public school participating in
the federal free lunch program.
   (C) The median household income for a family of four within the
census tracts of the proposed eligible area does not exceed 80
percent of the statewide median income for the most recently
available calendar year.
   (d) "Enterprise zone" means any area within a city, county, or
city and county that is designated as an enterprise zone by the
department in accordance with Section 7073.
   (e) "Governing body" means a county board of supervisors or a city
council, as appropriate.
   (f) "G-TEDA" means a geographically targeted economic development
area, which is an area designated as an enterprise zone, a
Manufacturing Enhancement Area, a targeted tax area, or a local
agency military base recovery area.
   (g) "High-technology industries" includes, but is not limited to,
the computer, biological engineering, electronics, and
telecommunications industries.
   (h) "Resident," unless otherwise defined, means a person whose
principal place of residence is within a targeted employment area.
   (i) (1) "Targeted employment area" means  an 
 either of the following: 
    (A)     For an area designated on or before
December 31, 2010, an  area within a city, county, or city and
county that is composed solely of those census tracts designated by
the United States Department of Housing and Urban Development as
having at least 51 percent of its residents of low- or
moderate-income levels, using either the most recent United States
Department of Census data available at the time of the original
enterprise zone application or the most recent census data available
at the time the targeted employment area is designated to determine
that eligibility.  The purpose of a "targeted employment area"
is to encourage businesses in an enterprise zone to hire eligible
residents of certain geographic areas within a city, county, or city
and county. A targeted employment area may be, but is not required to
be, the same as all or part of an enterprise zone. A targeted
employment area's boundaries need not be contiguous. A targeted
employment area does not need to encompass each eligible census tract
within a city, county, or city and county. The governing body of
each city, county, or city and county that has jurisdiction of the
enterprise zone shall identify those census tracts whose residents
are in the most need of this employment targeting. Only those census
tracts within the jurisdiction of the city, county, or city and
county that has jurisdiction of the enterprise zone may be included
in a targeted employment area.  
   (B) For an area designated on or after January 1, 2011, or for a
targeted employment area designated before January 1, 2011, following
the release of 2010 census data, subject to the deadline in
paragraph (5), means an area within a city, county, or city and
county that is composed solely of those census block groups
designated by the United States Department of Housing and Urban
Development as having at least 61 percent of its residents as low- or
moderate income levels, using the most recent census data available
at the time the targeted employment area is designated to determine
that eligibility.  
   (2) The purpose of a "targeted employment area" is to encourage
businesses in an enterprise zone to hire eligible residents of
certain geographic areas within a city, county, or city and county. A
targeted employment area may be, but is not required to be, the same
as all or part of an enterprise zone. A targeted employment area's
boundaries need not be contiguous. A targeted employment area does
not need to encompass each eligible census tract or block group
within a city, county, or city and county. The governing body of each
city, county, or city and county that has jurisdiction of the
enterprise zone shall identify those census tracts or block groups
whose residents are in the most need of this employment targeting.
Only those census tracts or block groups within the jurisdiction of
the city, county, or city and county that has jurisdiction of the
enterprise zone may be included in a targeted employment area. 

   (2) 
    (3)  At least a part of each eligible census tract 
or block group  within a targeted employment area shall be
within the territorial jurisdiction of the city, county, or city and
county that has jurisdiction for an enterprise zone. If an eligible
census tract  or block group  encompasses the territorial
jurisdiction of two or more local governmental entities, all of those
entities shall be a party to the designation of a targeted
employment area. However, any one or more of those entities, by
resolution or ordinance, may specify that it shall not participate in
the application as an applicant, but shall agree to complete all
actions stated within the application that apply to its jurisdiction,
if the area is designated. 
   (3) 
    (4)  Each local governmental entity of each city,
county, or city and county that has jurisdiction of an enterprise
zone shall approve, by resolution or ordinance, the boundaries of its
targeted employment area, regardless of whether a census tract 
or block group  within the proposed targeted employment area is
outside the jurisdiction of the local governmental entity. 
   (4) 
    (5)  (A) Within 180 days of updated United States census
data becoming available, each local governmental entity of each
city, county, or city and county that has jurisdiction of an
enterprise zone shall approve, by resolution or ordinance, boundaries
of its targeted employment area reflecting the new census data. If
no changes are necessary to the boundaries based on the most current
census data, the enterprise zone may send a letter to the department
stating that a review has been undertaken by the respective local
governmental entities and no boundary changes are required.
   (B) A targeted employment area boundary approved prior to the 2000
United States census data becoming available that has not been
reviewed and its boundaries revised to reflect the most recent census
data, shall be reviewed and updated, and a new resolution or
ordinance submitted by the appropriate local governmental entity to
the department, by July 1, 2007. However, enterprise zones that
expire on or prior to December 31, 2008, shall be exempt from the
update requirement.
  SEC. 2.  Section 7072.5 of the Government Code is amended to read:
   7072.5.   By April 1, 1998, a governing body that has
already designated a target employment area may request, by a
resolution of all cities or counties having jurisdiction over the
enterprise zone, to redesignate the targeted employment area using
more current census data. A   For a targeted employment
area designated on or before December 31, 2010, a  targeted
employment area shall be comprised of census tracts from only one
decennial census.  For a targeted employment area designated on
or after January 1, 2011, or for a targeted employment area 
 designated before January 1, 2011,   following the
release of the 2010 census data, subject to the deadlines in
paragraph (5) of subdivision (i) of Section 7072, a targeted
employment area shall be comprised of census block groups from only
one decennial census.