BILL ANALYSIS Ó
SB 90
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Date of Hearing: June 27, 2013
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
SB 90 (Committee on Budget and Fiscal Review) - As Amended:
June 26, 2013
SUBJECT : Economic Development: taxation: credits
SUMMARY : Specifies that for the purposes of the hiring credit
that is proposed in AB 93 (Budget Committee) of the 2013-14
Regular Session, a qualified employee also may be a person who
is on CalWORKs or general county assistance and specifically
prohibits a sexually oriented business a from receiving hiring
credits proposed under the bill. Specifically, this bill :
1)Specifies that a CalWORKs recipient or a person receiving
general assistance would meet the pre-hiring condition as a
"qualified full-time employee" under the hiring credit as
proposed in AB 93 of the 2013-14 Regular Session.
2)Prohibits a sexually oriented business from receiving the
hiring credits proposed in AB 93 of the 2013-14 Regular
Session.
3)Defines "sexually oriented business" as a nightclub, bar,
restaurant, or similar commercial enterprise that provides for
an audience of two or more individuals live nude entertainment
or live nude performances where the nudity is a function of
everyday business operations and where nudity is a planned and
intentional part of the entertainment or performance.
4)Defines "nude" as clothed in a manner that leaves uncovered or
visible, through less than fully opaque clothing, any portion
of the genitals or, in the case of a female, any portion of
the breasts below the top of the areola of the breasts.
5)Specifies that the prohibition applies to all business
receiving the credit, including small businesses with gross
receipts of less than $2 million annually.
6)Specifies that this bill shall become operative only if
Assembly Bill 93 of the 2013-14 Regular Session is chaptered
and becomes operative.
SB 90
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7)Contains an urgency clause.
EXISTING LAW : For a full discussion of existing law regarding
Enterprise Zones, please see the AB 93 (Budget Committee)
analysis.
FISCAL EFFECT : Unknown
COMMENTS :
1)The language as proposed in AB 93 (Budget Committee) of the
2013-14 Regular Session, which is currently back in the
Assembly for concurrence, is ambiguous on whether or not
sexually oriented businesses are expressly prohibited from
receiving a hiring tax credit as proposed in that bill. AB 93
calls out specific North American Industry Classification
System (NAICS) codes that are prohibited from receiving the
proposed credit, including bars, night clubs, casinos,
lounges, and casino hotels. However, not all sexually
oriented businesses fit within these classifications.
Moreover, if a business receiving the hiring tax credit is a
small business, and has under $2 million in gross receipts
annually, then there is no specific prohibition in AB 93 on
what types of businesses can receive the credit.
2)The provisions added by SB 90 will specifically prohibit any
business, no matter the size, from receiving the hiring credit
if the business is a sexually oriented business.
3)AB 93 contains various pre-hiring conditions that an employee
must meet in order to qualify for the credit. These include
that the person must meet one of the of the following
categories: a) long term unemployed (at least 6 months); b) a
veteran that had not been employed since separation from
service in the Armed Forces of the United States; c) was a
recipient in the previous taxable year of a Federal Earned
Income Tax Credit (EITC); or d) an ex-offender, as defined in
code.
4)SB 90 adds CalWORKs recipients and those who receive general
assistance from the county to the pre-hiring qualifications.
Although the EITC covers many persons who are at or near the
poverty level it does not include everyone. By adding
CalWORKs and general assistance SB 90 is offering the
opportunity of job placement and hiring credit for more
SB 90
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Californians.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958