BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2476
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                                Felipe Fuentes, Chair

               AB 2476 (V. Manuel Perez) - As Amended:  April 13, 2010 

          Policy Committee:                              Jobs, Econ.  
          Development & the Economy                     Vote: 6 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          This bill changes the definition of a targeted employment area  
          (TEA) in an Enterprise Zone after January 1, 2011, to include an  
          area within a city or county that is composed solely of those  
          census block groups designated by the United Sates Department of  
          Housing and Urban Development as having at least 61% of its  
          residents living at low- or moderate income levels. 

           FISCAL EFFECT  

          Costs associated with this legislation would be minor and  
          absorbable within existing resources. 


           Purpose  . By the author's admission, this bill is a vehicle that  
          he intends to substantially amend in the Senate to overhaul the  
          state's laws governing enterprise zones. The author is currently  
          holding meetings with various interested parties to determine  
          how the program should be restructured. 

          This bill currently tightens the criteria for designating a TEA  
          for the purposes of establishing one of 13 worker eligibility  
          criteria under the Enterprise Zone (EZ) hiring tax credit  
          requirements.  Under current law, 51% of the population in an  
          area needs to be low or moderate income.  After January 1, 2011,  
          that percentage would become 61% under this legislation. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)