BILL NUMBER: AB 484 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2012
AMENDED IN SENATE JUNE 14, 2012
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 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 an enterprise zone that expired in 2012
that sent 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 was 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,
the enterprise zone shall be deemed to be temporarily extended and
businesses within the geographic boundaries of the previous
enterprise zone may continue to be eligible to receive all enterprise
zone benefits. The bill would provide that the temporary extension
of an enterprise zone pursuant to this section shall continue until
the earlier of December 31, 2014, or the date that the department
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 an enterprise zone designation pursuant to these
provisions. The bill would also require the department to notify the
Franchise Tax Board within 60 days of the expiration of any
enterprise zone pursuant to these provisions. The bill would
require an enterprise zone that was temporarily extended pursuant to
the provisions of this act to meet certain requirements, including
submitting a report to the departmen t and not exceeding
the size of the previous enterprise zone by more than 10%. The bill
would require the Employment Development Department and the State
Department of Education to take certain steps to assist
individuals who reside in an enterprise zone temporarily extended
pursuant to these provisions. The bill would repeal these provisions
on January 1, 2015.
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 the 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 extended 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 extension of an
enterprise zone pursuant to this section shall continue until the
earlier of December 31, 2014, or the date that the department 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 an enterprise zone designation pursuant to
this section. The department shall notify the Franchise Tax Board
within 60 days of the expiration of any enterprise zone pursuant to
this section.
(c) An enterprise zone temporarily extended pursuant to this
section shall, by October 1, 2013, and again on December 31, 2014,
submit a report to the department that shall include all of the
following:
(1) Progress made during the period of the report relative to its
goals, objectives, and commitments.
(2) An identification of the previous two years' funding,
including in-kind funding.
(3) The number of new qualified employees for which certifications
have been issued.
(4) The number of qualified employees listed by the category that
he or she was eligible to become a qualified employee as described in
clause (iv) of subparagraph (A) of paragraph (4) of subdivision (a)
of Section 17053.74 of the Revenue and Taxation Code.
(5) The total range and the average, median, and mean qualified
employee wage rates that were certified.
(6) The number of businesses obtaining certification for qualified
employees.
(7) The industry classification, based on the North American
Industry Classification System, of businesses obtaining certification
of qualified employees.
(8) The distribution of employee certifications among industry
sectors, based on the North American Industry Classification System.
(9) The distribution of employee certifications by the annual
receipts and asset value of the business obtaining qualified employee
certifications.
(10) The number of state-certified small businesses that submitted
qualified employee certification applications.
(11) The number of state-certified disabled veteran owned-business
enterprises that submitted applications.
(d) The aggregate size of an enterprise zone temporarily extended
pursuant to this section shall not exceed the size of the previous
enterprise zone by more that 10 percent.
(e) The Employment Development Department and the State Department
of Education shall give high priority to the training of unemployed
individuals who reside in a targeted employment area or an enterprise
zone that was temporarily extended pursuant to this section. The
Employment Development Department shall, consistent with its duties
to assist unemployed workers who are registered in the one-stop
career centers, provide letters to unemployed prospective employees
that could be used to certify their eligibility as a person
participating in a program developed pursuant to the federal
Workforce Investment Act of 1998 (Public Law 105-220).
(f) The targeted employment area of an enterprise zone temporarily
extended pursuant to this section shall be updated whenever data
from the United States Census Bureau is available.
(c)
(g) 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.