BILL ANALYSIS �
SB 90
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( Without Reference to File )
SENATE THIRD READING
SB 90 (Galgiani and Cannella)
As Amended July 2, 2013
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
LOCAL GOVERNMENT 7-0
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|Ayes:|Achadjian, Levine, Alejo, | | |
| |Bradford, Gordon, Mullin, | | |
| |Rendon | | |
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SUMMARY : Makes a number of changes to AB 93 (Budget Committee)
related to economic development. Specifically, this bill :
1)Prohibits a sexually oriented business from receiving the
hiring credits proposed in AB 93 of the 2013-14 Regular
Session.
2)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.
3)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.
4)Extends the sunset on the Sales Tax Exemption to July 1, 2022
(thereby increasing to eight years for both the manufacturing
credit and bio-tech credits).
5)Strikes the term "former enterprise zone" and replace with the
term "economic development area" in the bill.
6)Defines the term "economic development area" to mean either a
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former enterprise zone or a local agency military base
recovery area (LAMBRA).
7)Clarifies that an enterprise zone designated and in effect as
of December 31, 2011, any enterprise zone designated during
2012, or any revision of an enterprise zone prior to June 30,
2013, as specified, is included in the term "economic
development area."
8)Makes changes to the provisions in AB 93 related to hiring
credits, as follows:
a) Removes provisions related to the small business set
aside (due to the fact that there is no cap to the amount
of hiring credits available);
b) Expands "qualified employee" groups to include
recipients of CalWORKs or general assistance;
c) Revises the term "ex-offender" to mean a "person
previously convicted of a felony"; and,
d) Revises language related to eligibility of veterans to
include those who have separated within the 12 months
preceding commencement of employment with the qualified
taxpayer.
9)Creates a pilot project for up to five pilot areas, as
follows:
a) Defines "designated pilot areas" to mean either:
i) Areas within a designated census tract or an
economic development area with average wages less than
the statewide average wages; and,
ii) Areas within a designated census tract or an
economic development area based on high poverty or high
unemployment.
b) Requires a minimum wage floor of $10 per hour and up to
350% of minimum wage for the portion of wages paid or
incurred by the qualified taxpayer during the taxable year;
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c) Requires the designation of a pilot area to be
applicable for a period of four years subject to renewal
for an additional three years;
d) Sunsets provisions related to designated pilot areas as
of December 31, 2020; and,
e) Requires the Governor's Office of Business and Economic
Development (GO-Biz) to designate and extend pilot areas at
their sole discretion and specifies that the designation
and extension is not be subject to administrative repeal or
judicial review.
10)Clarifies the definition of "qualified full-time employee"
for the purposes of designated pilot areas.
11)Specifies that this bill shall become operative only if AB 93
of the 2013-14 Regular Session is chaptered and becomes
operative.
12)Contains an urgency clause allowing the bill to take effect
immediately upon enactment.
EXISTING LAW : For a full discussion of existing law regarding
Enterprise Zones, please see the AB 93 (Budget Committee)
analysis.
FISCAL EFFECT : Unknown
COMMENTS : This bill makes a number of changes to the provisions
of AB 93 (Budget Committee) of the 2013-14 Regular Session, and
will become operative if AB 93 is chaptered and becomes
operative. This bill extends the sales tax exemption for both
the manufacturing credit and bio-tech credits to July 1, 2022.
Additionally the bill replaces the term "former enterprise zone"
with the term "economic development area" and expands the
definition of "economic development area" to mean either a
former enterprise zone or a LAMBRA. This bill also makes a
number of changes to the provisions contained in AB 93 related
to hiring credits by removing provisions related to the small
business set aside, expanding the definition of "qualified
employee" groups to include recipients of CalWORKs or general
assistance, revising the definition of "ex-offender," and
revising language related to the eligibility of veterans.
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This bill creates up to five pilot areas, as specified, and
requires GO-BIZ to designate those pilot areas, and sunset
provisions related to the pilot areas as of December 31, 2020.
This bill also prohibits a sexually oriented business from
receiving the hiring credits proposed in AB 93, and creates
definitions to implement those provisions. This bill contains
an urgency clause, meaning that it would take effect immediately
upon enactment.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
FN: 0001418