BILL NUMBER: AB 484	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 9, 2012
	AMENDED IN SENATE  FEBRUARY 15, 2012
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MARCH 29, 2011

INTRODUCED BY   Assembly Member Alejo
   (Principal coauthor: Assembly Member Knight)
   (Coauthor: Senator Runner)

                        FEBRUARY 15, 2011

   An act to amend Section 7074.2 of the Government Code, relating to
enterprise zones.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 484, as amended, Alejo. Enterprise zones: expiration of
designation.
   The Enterprise Zone Act requires the Department of Housing and
Community Development to administer the act and to designate no more
than 42 enterprise zones at any one time that may be proposed by a
city, county, or city and county from applications selected on the
basis of the most effective, innovative, and comprehensive
regulatory, tax program, and other incentives in attracting private
sector investment in the zone proposed. The act specifies that any
enterprise zone designated by the department on or after January 1,
1997, may not exceed a designation period of 15 years. Existing law
also authorizes an expiring enterprise zone that applies for a new
enterprise zone designation and receives a conditional designation
letter from the department, to offer, and a taxpayer doing business
within the geographic boundaries of the new zone referenced in the
conditional designation letter is eligible to receive, all enterprise
zone benefits until the department makes a final designation or
declines to redesignate the zone, as specified.
   This bill would authorize the jurisdiction of an expiring
enterprise zone to send a letter to the department expressing the
intent of the jurisdiction to reapply for a new enterprise zone
designation before the expiration of the designation of the
enterprise zone. The bill would provide that if that letter is sent
and, if before the expiration of the designation of the enterprise
zone, the department has not issued a request for proposal and has
not conditionally designated the maximum number of enterprise zones
within the state, then businesses within the geographic boundaries of
the existing enterprise zone may continue to be eligible to receive
all enterprise zone benefits until the department completes any
regulatory or administrative review, issues a request for proposal,
and issues conditional designation letters to the maximum number of
enterprise zones within the state  . The bill would also require
the department to notify the Franchise Tax Board of any extension of
enterprise zone benefits pursuant to these provisions  .
   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 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 any other 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.
   (d) Notwithstanding any other law, if the jurisdiction of an
expiring enterprise zone has sent a letter to the department
expressing the intent of the jurisdiction to reapply for a new
enterprise zone designation before the expiration of the designation
of the enterprise zone, and if before the expiration of the
designation of the enterprise zone the department has not issued a
request for proposal and has not conditionally designated the maximum
number of enterprise zones within the state, the businesses within
the geographic boundaries of the existing enterprise zone shall
continue to be eligible to receive all enterprise zone benefits until
the department completes any regulatory or administrative review,
issues a request for proposal, and issues conditional designation
letters to the maximum number of enterprise zones within the state
 . The department shall notify the Franchise Tax Board of any
extension of enterprise zone benefits pursuant to this subdivision
 .