BILL NUMBER: AB 1554	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Jobs, Economic Development, and the
Economy (V. Manuel Perez (Chair), Logue (Vice Chair), Beall, Bill
Berryhill, Block, Huber, and Salas)

                        MARCH 11, 2009

   An act to amend Sections 7085 and 7085.1 of the Government Code,
relating to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1554, as introduced, Committee on Jobs, Economic Development,
and the Economy. Economic development: Omnibus bill.
   Existing law requires the Department of Housing and Community
Development to submit a report to the Legislature every 5 years
evaluating specified effects of enterprise zones.
   This bill would revise the dates that the department is required
to submit its reports.
   Existing law requires a geographically targeted economic
development area (G-TEDA) to report to the Department of Housing and
Community Development by October 1, 2008, and every 2 years
thereafter, on progress made toward its existing goals and objectives
and plans for the following 2-year period.
   This bill would make technical, nonsubstantive changes to this
provision.
   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.  The Legislature finds and declares that this act by the
Assembly Committee on Jobs, Economic Development, and the Economy is
the committee's annual omnibus bill on geographically targeted
economic development areas.
  SEC. 2.  Section 7085 of the Government Code is amended to read:
   7085.  (a) Notwithstanding Section 7550.5, the department shall
submit a report to the Legislature  on or before December 31,
2010, addressing the period of January 1, 2004, to July 1, 2010,
inclusive, and submit a report  every five years 
beginning January 1, 1998,   thereafter, addressing the
period of the five immediately preceding fiscal years,  that
evaluates the effect of the program on employment, investment, and
incomes, and on state and local tax revenues in designated enterprise
zones. The report shall include a department review of the progress
and effectiveness of each enterprise zone, including, but not limited
to, any efforts made regarding training of unemployed individuals
pursuant to Section 7081. The Employment Development Department
shall, for the purposes of the report, provide the department with
existing data on unemployed individuals receiving training. The
Franchise Tax Board shall make available to the department and the
Legislature aggregate information on the dollar value of enterprise
zone tax credits that are claimed each year by businesses.
   (b) An enterprise zone governing body shall provide information at
the request of the department as necessary for the department to
prepare the report required pursuant to subdivision (a).
  SEC. 3.  Section 7085.1 of the Government Code is amended to read:
   7085.1.  (a) The governing board of the G-TEDA shall report to the
department by October 1, 2008, and by that date every other year
thereafter, on the activities of the G-TEDA in the previous two
fiscal years and its plans for the current and following fiscal year.
The biennial report shall include at least both of the following:
   (1) The progress the G-TEDA has made during the period covered by
the report relative to its goals, objectives, and commitments set
forth in its original application and the department's memorandum of
understanding with the G-TEDA.
   (2) Identification of the previous two years' funding, including
in-kind funding. The previous two years' funding levels shall be
compared to the funding levels identified in its original application
and the department's memorandum of understanding with the G-TEDA,
and the amount identified in the previous  year's 
biennial report. An explanation of any meaningful discrepancies in
these amounts shall be provided.
   (b) A copy of the biennial report developed pursuant to
subdivision (a) shall also be submitted to the legislative bodies of
the local jurisdictions comprising the G-TEDA. The progress of the
G-TEDA in meeting the goals, objectives, and commitments set forth in
the original application and the memorandum of understanding with
the department shall be reviewed at least biennially by these
legislative  bodies, either as part of the approval of the
G-TEDA's annual work plan or separately, at the discretion of the
legislative body   bodies  .
   (c) (1) G-TEDAs designated prior to January 1, 2007, shall have
until April 15, 2008, to update their benchmarks, goals, objectives,
and funding levels for administering the G-TEDA program, in order to
make them measurable and conducive to the successful completion of
the economic development strategy. The local legislative body and the
department shall approve the updated goals and objectives. The
updated goals and objectives shall be included as an update to the
existing memorandum of understanding between the G-TEDA and the
department.
   (2) G-TEDAs that fail to obtain approved updated goals and
objectives by April 15, 2008, shall be dedesignated effective July 1,
2008. The Director of Housing and Community Development shall
provide notice of prospective dedesignation to the local government
no later than May 1, 2008. The director may authorize up to two
60-calendar-day extensions, if the local government and G-TEDA are
acting in good faith and the additional time would allow them to meet
the requirements of this subdivision. Businesses located within a
G-TEDA that have been dedesignated shall continue to have access to
tax incentives previously authorized within the G-TEDA pursuant to
Section 7082.2.
   (3) G-TEDAs designated prior to January 1, 2007, are not required
to implement the biennial reporting requirements of subdivisions (a)
and (b) until October 1, 2009.
   (4) G-TEDAs that expire prior to January 1, 2010, are not required
to meet the conditions of this subdivision.
   (d) The department shall biennially make available to the
Legislature information related to the progress that each G-TEDA is
making toward implementing its goals, objectives, and commitments set
forth in the original application, the department's memorandum of
understanding with the G-TEDA, and the  G-TEDA's  biennial
report.
  SEC. 4.  The Legislature finds and declares both of the following:
   (a) This is an act by the Assembly Committee on Jobs, Economic
Development, and the Economy for code maintenance.
   (b) The changes made by this act to Section 7085.1 of the
Government Code are technical, nonsubstantive corrections.
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