BILL NUMBER: SBX8 52	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Correa, Ashburn, Denham, and Walters
   (Coauthors: Assembly Members Fletcher, Hagman, Portantino,
Solorio, Tran, and Villines)

                        FEBRUARY 12, 2010

   An act to amend Section 7074.2 of the Government Code, relating to
economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 52, as introduced, Correa. Economic development: projects.
   The Enterprise Zone Act provides for the designation of enterprise
zones by the Department of Housing and Community Development, based
on the department's approval of applications from a city, county, or
city and county with a geographic area meeting certain criteria.
Certain entities within a designated enterprise zone may receive
regulatory, tax, and other incentives for private investment and
employment. Existing law provides that no more than 42 enterprise
zones be designated at any one time pursuant to the act. Upon the
expiration or termination of a designation, existing law authorizes
the department to designate another enterprise zone to maintain a
total of 42 enterprise zones.
   This bill would authorize the department to designate one special
enterprise zone within the City of Fremont consisting of a
geographical area encompassing a facility that manufactures
automobiles and to designate, until June 30, 2010, an additional 10
special enterprise zones limited to one nonrenewable 15-year term.
The bill would exclude these enterprise zones from the calculation of
the overall number of enterprise zones authorized under the act.
   This bill would make legislative findings and declarations as to
the necessity of a special statute.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
   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 7074.2 of the Government Code is amended to
read:
   7074.2.  (a) Notwithstanding any other  provision of
 law, a city, county, or a city and county may designate a
joint powers authority to administer an enterprise zone.
   (b) No more than 42 enterprise zones may be designated at any one
time pursuant to this chapter, including those deemed designated
pursuant to subdivision (e) of Section 7073. Upon the expiration or
termination of a designation, the department may designate another
enterprise zone to maintain a total of 42 enterprise zones. 
   (c) Notwithstanding subdivision (b), the department may designate
one special enterprise zone pursuant to this chapter within the City
of Fremont that consists of a geographical area encompassing a
facility that manufactures automobiles. The enterprise zone
designated under this subdivision shall not be included in the
calculation of the overall number of enterprise zones authorized
under this chapter. The applicant and application shall comply with
the provisions of this chapter and the department's regulations
governing enterprise zones specified in Title 25 (commencing with
Section 8430) of the California Code of Regulations, except that the
application shall not be subject to a competitive application
process.  
   (d) Notwithstanding subdivision (b), the department may, until
June 30, 2010, designate an additional 10 special enterprise zones
limited to one nonrenewable 15-year term. Enterprise zones designated
under this subdivision shall not be included in the calculation of
the overall number of enterprise zones authorized under this chapter.
If the department has completed its 2009 competitive designation
process as of the date the act amending this section goes into
effect, it may use the results of that process to select the
additional 10 special enterprise zones.  
   (c) 
    (e)  Notwithstanding any other provision of law, an
expiring enterprise zone that applies for a new enterprise zone
designation pursuant to Section 7073 or 7073.1, and receives a
conditional designation letter from the department, may offer, and a
taxpayer doing business within the geographic boundaries of the new
zone referenced in the conditional designation letter shall be
eligible to receive, all enterprise zone benefits until the
department makes a final designation or declines to redesignate the
zone. The department shall make the effective date of the new zone
the date of expiration of the previous designation and the term of
the new zone shall begin on that date.
  SEC. 2.  Due to the unique circumstances of the City of Fremont,
with respect to the need for sustained employment and business
development in the area, the Legislature hereby finds and declares
that a general statute cannot be made applicable within the meaning
of Section 16 of Article IV of the California Constitution.
  SEC. 3.  This act addresses the fiscal emergency declared by the
Governor by proclamation on January 8, 2010, pursuant to subdivision
(f) of Section 10 of Article IV of the California Constitution.