BILL NUMBER: SB 133 INTRODUCED
BILL TEXT
INTRODUCED BY Senator DeSaulnier
JANUARY 28, 2013
An act to amend Section 7073.1 of the Government Code, relating to
economic development.
LEGISLATIVE COUNSEL'S DIGEST
SB 133, as introduced, DeSaulnier. Enterprise zones: applications.
The Enterprise Zone Act provides for the designation of enterprise
zones by the Department of Housing and Community Development, based
on the department's approval of applications from a city, county, or
city and county with a geographic area meeting certain criteria. The
act, among other things, sets forth the application process.
This bill, for any application for an enterprise zone designation
submitted on or after January 1, 2014, if any portion of the proposed
zone is within, or was previously within, the boundaries of a
previously designated zone, or if any portions of the proposed zone
are within, or previously were within, the boundaries of 2 or more
previously designated enterprise zones, would prohibit the proposed
enterprise zone from exceeding a specified aggregate size.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7073.1 of the Government Code is amended to
read:
7073.1. (a) Except as provided in subdivision (e), any
Any city, county, or city and county with an
eligible area within its jurisdiction may complete a preliminary
application for designation as an enterprise zone. The applying
entity shall establish definitive boundaries for the proposed
enterprise zone and the targeted employment area. An entity may
propose zones in areas with noncontiguous boundaries, and the
department may designate those areas as zones if the director
determines both of the following:
(1) The noncontiguous area is needed to implement the applicant's
economic development strategy.
(2) The excluded area between the proposed zone boundaries would
not, based on the proposed economic strategy, also benefit from the
zone designation.
(b) (1) In designating enterprise zones, the department shall
select from the applications submitted those proposed enterprise
zones that, upon a comparison of all of the applications submitted,
indicate that they propose the most appropriate economic development
strategy and implementation plan utilizing state and local programs
and incentives to create jobs, attract private sector investment, and
improve the economic conditions within the zone proposed. The
department shall prescribe a format that promotes succinct and
focused strategies and plans, and set minimum standards for the
strategies and plans. For the purposes of this subdivision, important
elements of a strategy or plan may include, but are not limited to,
all of the following:
(A) An assessment of current financial and community development
strengths, needs, and opportunities.
(B) A framework for investment of time, action, and money.
(C) Clear articulation of goals.
(D) Measurable objectives, including targets.
(E) Proposed implementation activities and tasks, including
timeframes, and a framework for evaluating performance, including
qualitative and quantitative benchmarks.
(2) For purposes of this subdivision, local incentives may
include, but are not limited to, all of the following:
(A) The suspension or relaxation of locally originated or modified
building codes, zoning laws, general development plans, or rent
controls.
(B) The elimination or reduction of fees for applications,
permits, and local government services.
(C) The establishment of a streamlined permit process.
(D) Elimination or reduction of construction taxes or business
license taxes.
(E) The provision or expansion of infrastructure.
(F) The targeting of federal block grant moneys, including small
cities, education, and health and welfare block grants.
(G) The targeting of economic development grants and loan moneys,
including grant and loan moneys provided by the United States
Department of Housing and Urban Development.
(H) The targeting of state and federal job disadvantaged and
vocational education grant moneys, including moneys provided by the
federal Workforce Investment Act of 1998 (Public Law 105-220), or its
successor.
(I) The targeting of federal or state transportation grant moneys.
(J) The targeting of federal or state low-income housing and
rental assistance moneys.
(K) The use of tax allocation bonds, special assessment bonds,
bonds under the Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title
5), industrial development bonds, revenue bonds, private activity
bonds, housing bonds, bonds issued pursuant to the Marks-Roos Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of
Chapter 5), certificates of participation, hospital bonds,
redevelopment bonds, school bonds, and all special provisions
provided for under federal tax law for enterprise community or
empowerment zone bonds.
(3) When designating new enterprise zones, the department shall
take into consideration the location of existing zones and make every
effort to locate new zones in a manner that will not adversely
affect any existing zones.
(4) When reviewing and ranking new enterprise zone applications,
the department shall give bonus points to applications from
jurisdictions that meet minimum threshold points and at least two of
the following criteria:
(A) The percentage of households within the census tracts of the
proposed enterprise zone area, the income of which is below the
poverty level, is at least 17.5 percent.
(B) The average unemployment rate for the census tracts of the
proposed enterprise zone area was not less than five percentage
points above the statewide average for the most recent calendar year
as determined by the Employment Development Department.
(C) The applicant jurisdiction has, and can document that it has,
a unique distress factor affecting long-term economic development,
including, but not limited to, resource depletion, plant closure,
industry recession, natural disaster, or military base closure.
(5) Except as modified pursuant to paragraph (4), applications
shall be ranked by the appropriateness of the economic development
strategy and implementation plan, including all of the following:
(A) The extent the strategy clearly identifies the local
resources, incentives, and programs that will be made available to
the zone for meeting its goals and objectives.
(B) The extent the strategy provides for attracting private sector
investment.
(C) The extent the strategy includes related regional and
community-based partnerships for achieving the goals and objectives
in the strategy.
(D) The extent the strategy fits within the jurisdiction's overall
economic development strategy, including the extent the strategy and
implementation plan is appropriate for the local community.
(E) The extent the strategy addresses the hiring and retention of
unemployed or underemployed residents or low-income individuals in
the proposed zone and surrounding areas.
(F) The extent the strategy sets reasonable and measurable
benchmarks, goals, and objectives.
(G) The extent the strategy sets forth an appropriate funding
schedule for management, oversight, and program delivery within the
zone relative to the benchmarks, goals, and objectives in the
strategy.
(H) The extent that the economic development strategy has a
comprehensive incentive package for attracting private investment to
the enterprise zone.
(c) For any application for an enterprise zone designation
submitted on or after January 1, 2014, both of the following shall
apply:
(1) If any portion of the proposed zone is within, or previously
was within, the boundaries of a previously designated enterprise
zone, the aggregate size of the proposed enterprise zone shall not
exceed the size of the previously designated enterprise zone by more
than 15 percent.
(2) If any portions of the proposed zone are within, or previously
were within, the boundaries of two or more previously designated
enterprise zones, the aggregate size of the proposed enterprise zone
shall not exceed the size of the largest single previously designated
enterprise zone by more than 15 percent.
(c)
(d) In evaluating applications for designation, the
department shall ensure that applications are not disqualified solely
because of technical deficiencies, and shall provide applicants with
an opportunity to correct the deficiencies. Applications shall be
disqualified if the deficiencies are not corrected within two weeks.
(d)
(e) Except upon dedesignation pursuant to subdivision
(c) of Section 7076.1, Section 7076.2, or Section 7085.1, a
designation made by the department shall be binding for a period of
15 years from the date of the original designation.
(e)
(f) This section shall only apply
only to enterprise zone applications for which the
department has issued a solicitation for new enterprise zone
designations on or after January 1, 2007.