BILL NUMBER: AB 1530 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Members Huffman and Olsen
JANUARY 23, 2012
An act to add Chapter 9 (commencing with Section 51299) to
Part 1 of Division 1 of Title 5 of the Government Code, and to add
Section 242 to the Revenue and Taxation Code, relating to
economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 1530, as amended, Huffman. Economic development: Clean
Manufacturing and Job Creation Incentive Act of 2012.
The
(1) The Enterprise Zone Act
provides for the designation and oversight by the Department of
Housing and Community Development of various types of economic
development areas throughout the state, including enterprise zones,
targeted tax areas, local agency military base recovery areas
(LAMBRAs), and manufacturing enhancement areas, collectively known as
geographically targeted economic development areas, or G-TEDAs.
Pursuant to these provisions, qualifying entities in those areas may
receive certain tax and regulatory incentives.
This bill would establish the Clean Manufacturing and Job Creation
Incentive Act of 2012, and would authorize the legislative body of a
city, county, or city and county to establish a clean manufacturing
zone, as defined, within the city, county, or city and county's
boundaries for the purpose of providing incentives to manufacturing
businesses to locate within that city, county, or city and county.
(2) The California Constitution authorizes the Legislature to
classify personal property for differential taxation or for exemption
by means of a statute approved by a 2/3 vote of the membership of
each house.
This bill would, pursuant to this constitutional authorization,
commencing with the 2013-14 fiscal year and for each fiscal year
thereafter, exempt from property taxation qualified personal
property, as defined, used in a clean manufacturing zone, as defined.
By imposing new duties upon local tax officials with respect to
the personal property tax exemption described above, this bill would
impose a state-mandated local program.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(4) Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
This bill would state the intent of the Legislature to enact the
Clean Manufacturing and Job Creation Incentive Act of 2012. That act
would, among other things, establish clean manufacturing zones that
would attract new manufacturing businesses to California by approving
necessary permits and licenses in advance, and provide a property
tax exemption for new manufacturing equipment purchased for use in a
clean manufacturing zone.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be
cited as the Clean Manufacturing and Job Creation Incentive Act of
2012.
SEC. 2. SECTION 1. The Legislature
finds and declares all of the following:
(a) California's economy is among the 10 largest in the world,
with a gross domestic product of almost $2 trillion.
(b) Although the state unemployment rate remains over 11 percent,
California still ranks first among all 50 states in new branches of
high-tech manufacturing and first in the number of manufacturing
industry jobs.
(c) Economic development and job creation are essential elements
of California's fiscal recovery.
(d) California must compete with other states to attract
high-skill, high-wage manufacturing businesses and jobs, and to
retain manufacturing jobs and facilities as companies grow and
expand, which in turn can stimulate and support new businesses and
jobs in a range of sectors.
(e) California's environmental protections and public health and
safety standards are essential to ensure quality of life and economic
growth in the Golden State.
(f) One of the major obstacles identified by businesses to opening
new facilities in California is delays in acquiring the licenses and
permits necessary to operate, including local and state business
licenses and other regulatory approvals.
(g) The purpose of this act is to stimulate growth in the
manufacturing industry without compromising California's high
environmental, public health, and safety standards by creating clean
manufacturing zones with preapproved permits and licenses to
accommodate new and expanding manufacturing businesses.
SEC. 2. Chapter 9 (commencing with Section 51299)
is added to Part 1 of Division 1 of Title 5 of the
Government Code , to read:
CHAPTER 9. CLEAN MANUFACTURING AND JOB CREATION INCENTIVE ACT
OF 2012
51299. This act shall be known, and may be cited, as the Clean
Manufacturing and Job Creation Incentive Act of 2012.
51299.2. (a) For purposes of this chapter, the following terms
have the following meanings:
(1) "Clean manufacturing zone" means an area within a city,
county, or city and county that is designated by the legislative body
of the city, county, or city and county as a clean manufacturing
zone and is suitable for commercial or industrial use.
(2) "Manufacturing" means the activity of converting or
conditioning property by changing the form, composition, quality, or
character of the property for sale at retail or use in manufacturing
of a product to be sold at retail. Manufacturing includes any
improvements to tangible personal property that result in a greater
service life or greater functionality than that of the original
property.
(b) A city, county, or city and county may establish a clean
manufacturing zone within its boundaries by ordinance or resolution
of the legislative body of the city, county, or city and county for
the purpose of providing incentives to manufacturing businesses to
locate within that city, county, or city and county.
SEC. 3. Section 242 is added to the
Revenue and Taxation Code , to read:
242. (a) For the 2013-14 fiscal year and for each fiscal year
thereafter, qualified personal property used in a clean manufacturing
zone is exempt from taxation.
(b) For purposes of this section, both of the following shall
apply:
(1) "Qualified personal property" means property that is purchased
on or after January 1, 2013, for use in a clean manufacturing zone.
Qualified personal property includes, but is not limited to,
equipment or devices used or required to operate, control, regulate,
or maintain machinery and equipment, including, without limitation,
computers, data processing equipment, and computer software, together
with all repair and replacement parts with a useful life of one or
more years, whether purchased separately or in conjunction with the
machinery or equipment.
(2) "Clean manufacturing zone" means a zone that is established
pursuant to the authorization in the Clean Manufacturing and Job
Creation Incentive Act of 2012 (Chapter 9 (commencing with Section
51299) of Part 1 of Division 1 of Title 5 of the Government Code).
SEC. 4. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 5. Notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any property tax
revenues lost by it pursuant to this act.
SEC. 3. The Legislature declares its intent to
enact legislation to do both of the following:
(a) Establish clean manufacturing zones, with all necessary
permits and licenses approved in advance, to attract new
manufacturing businesses.
(b) Provide a property tax exemption for new manufacturing
equipment purchased for use in clean manufacturing zones.