BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2900|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 2900
Author: Committee on Jobs, Economic Development, and the
Economy
Amended: 8/19/16 in Senate
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/20/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 79-0, 6/1/16 - See last page for vote
SUBJECT: Small business technical assistance centers: income
taxation: credits: California Competes Tax Credit
Committee: GO-Biz
SOURCE: Author
DIGEST: This bill creates three additional disclosure
requirements for the California Competes Tax Credit Program
(CCTC Program) under the Governor's Office of Business and
Economic Development (GO-Biz).
Senate Floor Amendments of 8/19/16 delete provisions that
require a state department that awards state funds to a federal
small business technical assistance center to report annually on
the outcomes of those contracts.
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ANALYSIS:
Existing law:
1)Establishes GO-Biz to serve as the lead state entity for
economic strategy and marketing of California on issues
relating to business development, private sector investment,
and economic growth. (Government Code (GC) §§ 12096 -
12098.5)
2)Establishes the Office of Small Business Advocate (OSBA)
within the GO-Biz to advocate the causes of small business and
to provide small businesses with the information necessary to
survive in the marketplace. (GC §§ 12098 - 12098.9)
3)Requires GO-Biz to post information on its website relating to
the CCTC Program including: (Revenue and Taxation Code (RTC)
§ 17059.2 and § 23689)
a) The name of each taxpayer allocated a credit pursuant to
this section
b) The estimated amount of the investment by each taxpayer;
c) The estimated number of jobs created or retained;
d) The amount of the credit allocated to the taxpayer; and
e) The amount of the credit recaptured from the taxpayer,
if applicable.
1)Requires that priority for the CCTC Program be given to
applications from taxpayers with projects or businesses
located in high unemployment or high poverty areas. (RTC §
17059.2(c)(1) and § 23689(c)(1))
2)Requires that at least 25 percent of the CCTC Program's tax
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credits be awarded to small businesses annually. (RTC §
17059.2(g)(2)(3) and § 23689(g)(2)(3))
This bill expands the reporting requirements of the CCTC Program
to include, on its Web site, the following information:
1)The primary location of the facility(s) for which the taxpayer
is applying for credits listed by city or, in the case of
unincorporated areas, by county;
2)Information that identifies each tax credit award that was
given a priority for being located in a high unemployment or
poverty area, as specified; and
3)Information that identifies each tax credit award that is
being counted toward the requirement that, each fiscal year,
25 percent of the aggregate amount of credits allocated are
required to be reserved for small business, as defined.
Background
The Assembly Committee on Jobs, Economic Development, and the
Economy (JEDE) is the Author and sponsor of this bill.
According to the JEDE, the bill would "codify the reporting of
key elements of the tax credit program, including the
identification of business or project location, credits awarded
to small businesses, and credit awards that received priority
consideration. Each of these new reporting requirements
represents a key element of the tax credit program and is
essential to providing appropriate oversight and program
transparency. These elements include information to identify:
areas that are not currently being served; whether the
requirements of the small business set aside are being met; and
which areas of the state are benefiting from the priority
application requirements for high unemployment and high
poverty."
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
A Senate Committee on Appropriations analysis dated August 11,
2016 indicated that the total fiscal impact of this bill is
unknown, but could exceed $150,000 annually. However, the
amendments taken on August 19, 2016 removed the provisions in
the bill that were estimated to result in significant
administrative costs. The analysis also indicated that the
provisions that are now the remainder of the bill would be
"minor and absorbable" to GO-Biz.
SUPPORT: (Verified8/22/16)
None received
OPPOSITION: (Verified8/22/16)
None received
ASSEMBLY FLOOR: 79-0, 6/1/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Cooper
Prepared by:Nicole Billington / B., P. & E.D. / (916) 651-4104
8/22/16 20:38:01
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