BILL NUMBER: AB 2476 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2010
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 amended, 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 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.
(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 , and
subject to the update 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
over 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 over the enterprise
zone may be included in a targeted employment area.
(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.
(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.
(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 shall
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. (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
(b) 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.
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