BILL ANALYSIS AB 2476 Page 1 Date of Hearing: May 12, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS 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: SUMMARY 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. COMMENTS 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) 319-2081