BILL NUMBER: AB 484 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 6, 2012
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 add and
repeal Section 7074.4 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
that expired in 2012 a letter to the department
in 2012 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 the
enterprise zone shall be deemed to be temporarily redesignated and
businesses within the geographic boundaries of the
existing previous enterprise zone may continue
to be eligible to receive all enterprise zone benefits until
. The bill would provide that the temporary
redesignation of an enterprise zone pursuant to this section shall
continue until the earlier of December 31, 2014, or the
date that 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 within 60 days of any
extension of enterprise zone benefits pursuant to these provisions.
The bill would also require the department to notify the
Franchise Tax Board and any affected taxpayers within an enterprise
zone that has been temporarily redesignated pursuant to this section
60 days prior to the date that the temporary redesignation period is
to expire or December 31, 2014.
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 7074.4 is added to th
e Government Code , to read:
7074.4. (a) Notwithstanding any other law, if an enterprise zone
that expired in 2012 had sent a letter to the department in 2012
expressing the intent 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 enterprise zone shall be
deemed to be temporarily redesignated and businesses within the
geographic boundaries of the previous enterprise zone shall be
eligible to receive all enterprise zone benefits as of the date that
the previous enterprise zone expired. The temporary redesignation of
an enterprise zone pursuant to this section shall continue until the
earlier of December 31, 2014, or the date that 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.
(b) The department shall notify the Franchise Tax Board within 60
days of any extension of enterprise zone benefits pursuant to this
section. The department shall notify the Franchise Tax Board and any
affected taxpayers within an enterprise zone that has been
temporarily redesignated pursuant to this section 60 days prior to
the date that the temporary redesignation period is to expire or
December 31, 2014.
(c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
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.