BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1554
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

            AB 1554 (Committee on Jobs) - As Introduced:  March 11, 2009 

          Policy Committee:                              Jobs Vote:7 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes technical and non-substantive changes to the  
          statutes related to Geographically Targeted Economic Development  
          Areas (G-TEDAs). Specifically, this bill: 

          1)Revises the due date by which the California Department of  
            Housing and Community Development (HCD) must submit the  
            required five-year report to reflect only those years HCD  
            administered the programs.

          2)Eliminates an obsolete reference to an annual work plan. 

           FISCAL EFFECT  

          There are no costs associated with this legislation.

           COMMENTS  

           1)Purpose  . This bill is the annual G-TEDA omnibus bill for the  
            Assembly Jobs, Economic Development and the Economy Committee.  
            It is intended to make non-controversial technical changes to  
            the statutes governing G-TEDAs. 
           
          2)G-TEDA programs  . The Geographically-Targeted Economic  
            Development Area (G-TEDA) programs are based on the economic  
            principle that targeting significant incentives to lower  
            income communities allows these communities to more  
            effectively compete for new businesses and retain existing  
            businesses, which may result in increased tax revenues, less  
            reliance on social services, and lower public safety costs.  
            Residents and businesses also directly benefit from these more  
            sustainable economic conditions through improved  








                                                                  AB 1554
                                                                  Page  2

            neighborhoods, business expansion, and job creation.  G-TEDA  
            programs include LAMBRAs, Enterprise Zones, Manufacturing  
            Enhancement Zones, and Targeted Tax Areas. 

            Under the G-TEDA programs, businesses and other entities  
            located within the area are eligible for a variety of local  
            and state incentives. Local government incentives can include  
            writing down the costs of development, funding related  
            infrastructure improvements, providing job training to  
            prospective employees, or establishing streamlined processes  
            for obtaining permits. The state also offers a number of  
            incentives, including: tax credits, special tax provisions,  
            priority notification in the sale of state surplus lands,  
            access to certain Brownfield clean-up programs, and  
            preferential treatment for state contracts. 

           3)Related Legislation  . This bill is virtually identical to AB  
            1720(Committee on Jobs) from 2008 that was vetoed due to the  
            late passage of the 2008-09 budget.  In the message the  
            governor wrote, "I am only signing bills that are the highest  
            priority for California. This bill does not meet that standard  
            and I cannot sign it at this time." 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081