BILL ANALYSIS �
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THIRD READING
Bill No: AB 2672
Author: Assembly Jobs, Economic Development, and the
Economy Committee
Amended: 8/22/12 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMM. : 9-3, 6/26/12
AYES: Wright, Calderon, Corbett, De Le�n, Evans,
Hernandez, Padilla, Wyland, Yee
NOES: Anderson, Berryhill, Cannella
NO VOTE RECORDED: Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 46-24, 5/3/12 - See last page for vote
SUBJECT : Procurement omnibus bill
SOURCE : Author
DIGEST : This bill increases communication between the
Department of General Services (DGS) and the Housing and
Community Development Department (HCD) for purposes of
implementing the state's enterprise zone and Local Agency
Military Base Realignment Areas (LAMBRA) programs.
Specifically, it (1) requires DGS to report to HCD
aggregate figures on the number of businesses located in
enterprise zones or in LAMBRAs claiming preferences for
state contracts, and (2) requires the Department of Human
Services to change their contracts training program to
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address the requirements for preference for small
businesses, disabled veteran-owned business and enterprise
zone preferences.
Senate Floor Amendments of 8/22/12 remove from the bill a
requirement that state departments awarding contracts shall
submit a report to the DGS on the number of businesses that
claim enterprise zone preferences. In addition, a
technical amendment changed the name of the Department of
Personnel Administration to the Department of Human
Resources, its new name.
ANALYSIS : The California Enterprise Zone Program and the
other geographically-targeted economic development areas
(G-TEDAs) represent the state's primary economic
development programs in California. Eligibility for G-TEDA
designation is limited to areas within communities that can
demonstrate blighted conditions such as high poverty or
high unemployment rates.
HCD administers four G-TEDA programs including: Enterprise
Zones, Manufacturing Enhancement Areas (MEAs), LAMBRAs and
the Targeted Tax Area (TTA). G-TEDA programs are based on
the principle that targeting significant economic
incentives to low-income communities allows these
communities to more effectively compete for new businesses
and retain existing businesses, resulting in increased tax
revenues, less reliance on social services, and lower
public safety costs. Residents and businesses directly
benefit from these more sustainable economic conditions
through improved neighborhoods, business expansion, and job
creation.
The 42 enterprise zones, eight LAMBRAs, two MEAs and one
TTA are located in portions of 54 Assembly Districts and 34
Senate Districts. Each zone designation is for a period of
15 years, although the initial zones were given an
additional five years due to the slow start-up of the
program. No other extensions have been authorized.
G-TEDAs range in size from one square mile to over 70
square miles and in geographic locations ranging from
Eureka and Shasta Valley near the Oregon border to San
Diego and Calexico along the can border. With the approval
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of the 2006 reforms, each designated area is governed by a
comprehensive economic strategy that details local
government commitments, benchmarks, and baselines.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/7/12)
California Association of Enterprise Zones
California Association for Micro Enterprise Opportunity
ASSEMBLY FLOOR : 46-24, 5/3/12
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bradford, Brownley, Buchanan, Butler,
Campos, Carter, Cedillo, Chesbro, Davis, Dickinson, Eng,
Feuer, Fong, Fuentes, Galgiani, Gatto, Gordon, Hayashi,
Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma,
Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel P�rez,
Portantino, Skinner, Solorio, Swanson, Torres,
Wieckowski, Yamada, John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman,
Harkey, Jeffries, Knight, Logue, Mansoor, Miller,
Morrell, Nielsen, Norby, Olsen, Silva, Valadao, Wagner
NO VOTE RECORDED: Bonilla, Charles Calderon, Fletcher,
Furutani, Hall, Roger Hern�ndez, Jones, Nestande, Smyth,
Williams
DLW:k 8/23/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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