BILL NUMBER: SB 301 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 26, 2012
AMENDED IN ASSEMBLY MAY 31, 2011
AMENDED IN SENATE APRIL 7, 2011
INTRODUCED BY Senator DeSaulnier
FEBRUARY 14, 2011
An act to amend Section 7073.1 12098
of the Government Code, relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
SB 301, as amended, DeSaulnier. Enterprise zones:
applications. Office of Small Business Advocate.
Existing law establishes a small business advocate within the
Department of General Services, and requires that advocate to carry
out various powers and duties relating to the support of small
businesses. Existing law requires each state agency to designate a
small business advocate to serve as a liaison to small business
suppliers.
Existing law establishes the Office of Small Business Advocate
within the Governor's Office of Business and Economic Development.
Existing law requires the advocate to carry out various duties
relating to promoting small business, including, among others,
posting on its Internet Web site the name and telephone number of
each small business advocate designated by a state agency to serve as
a liaison to small business suppliers.
This bill would require the Office of Small Business Advocate to
also post on its Internet Web site the name and telephone number of
the Department of General Services' small business advocate.
The Enterprise Zone Act provides for the designation of enterprise
zones by the Department of Housing and Community Development, based
on the department's approval of applications from a city, county, or
city and county with a geographic area meeting certain criteria. The
act, among other things, sets forth the application process.
This bill would provide that for applications submitted on or
after January 1, 2012, if any portion of the proposed zone is within,
or was previously within, the boundaries of a previously designated
zone, or if any portions of the proposed zone are within, or
previously were within, the boundaries of 2 or more previously
designated enterprise zones, the proposed enterprise zone would be
prohibited from exceeding a specified aggregate size.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12098 of the
Government Code is amended to read:
12098. (a) The Legislature finds and declares that it is in the
public interest to aid, counsel, assist, and protect, insofar as is
possible, the interests of small business concerns in order to
preserve free competitive enterprise and maintain a healthy state
economy.
(b) In order to advocate the causes of small business and to
provide small businesses with the information they need to survive in
the marketplace, there is created within the Governor's Office of
Business and Economic Development the Office of Small Business
Advocate.
(c) The advocate shall post on his or her Internet Web site the
name and telephone number of the Department of General Services'
small business advocate, which is designated pursuant to Section
14845 for the purpose of facilitating small business
procurement-related issues, and each state agency's small
business liaison advocate designated
to serve as a liaison to small business suppliers pursuant
to Section 14846.
SECTION 1. Section 7073.1 of the Government
Code is amended to read:
7073.1. (a) Any city, county, or city and county with an eligible
area within its jurisdiction may complete a preliminary application
for designation as an enterprise zone. The applying entity shall
establish definitive boundaries for the proposed enterprise zone and
the targeted employment area. An entity may propose zones in areas
with noncontiguous boundaries, and the department may designate those
areas as zones if the director determines both of the following:
(1) The noncontiguous area is needed to implement the applicant's
economic development strategy.
(2) The excluded area between the proposed zone boundaries would
not, based on the proposed economic strategy, also benefit from the
zone designation.
(b) (1) In designating enterprise zones, the department shall
select from the applications submitted those proposed enterprise
zones that, upon a comparison of all of the applications submitted,
indicate that they propose the most appropriate economic development
strategy and implementation plan utilizing state and local programs
and incentives to create jobs, attract private sector investment, and
improve the economic conditions within the zone proposed. The
department shall prescribe a format that promotes succinct and
focused strategies and plans, and set minimum standards for the
strategies and plans. For the purposes of this subdivision, important
elements of a strategy or plan may include, but are not limited to,
all of the following:
(A) An assessment of current financial and community development
strengths, needs, and opportunities.
(B) A framework for investment of time, action, and money.
(C) Clear articulation of goals.
(D) Measurable objectives, including targets.
(E) Proposed implementation activities and tasks, including
timeframes, and a framework for evaluating performance, including
qualitative and quantitative benchmarks.
(2) For purposes of this subdivision, local incentives may
include, but are not limited to, all of the following:
(A) The suspension or relaxation of locally originated or modified
building codes, zoning laws, general development plans, or rent
controls.
(B) The elimination or reduction of fees for applications,
permits, and local government services.
(C) The establishment of a streamlined permit process.
(D) Elimination or reduction of construction taxes or business
license taxes.
(E) The provision or expansion of infrastructure.
(F) The targeting of federal block grant moneys, including small
cities, education, and health and welfare block grants.
(G) The targeting of economic development grants and loan moneys,
including grant and loan moneys provided by the United States
Department of Housing and Urban Development.
(H) The targeting of state and federal job disadvantaged and
vocational education grant moneys, including moneys provided by the
federal Workforce Investment Act of 1998 (Public Law 105-220), or its
successor.
(I) The targeting of federal or state transportation grant moneys.
(J) The targeting of federal or state low-income housing and
rental assistance moneys.
(K) The use of tax allocation bonds, special assessment bonds,
bonds under the Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title
5), industrial development bonds, revenue bonds, private activity
bonds, housing bonds, bonds issued pursuant to the Marks-Roos Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of
Chapter 5), certificates of participation, hospital bonds,
redevelopment bonds, school bonds, and all special provisions
provided for under federal tax law for enterprise community or
empowerment zone bonds.
(3) When designating new enterprise zones, the department shall
take into consideration the location of existing zones and make every
effort to locate new zones in a manner that will not adversely
affect any existing zones.
(4) When reviewing and ranking new enterprise zone applications,
the department shall give bonus points to applications from
jurisdictions that meet minimum threshold points and at least two of
the following criteria:
(A) The percentage of households within the census tracts of the
proposed enterprise zone area, the income of which is below the
poverty level, is at least 17.5 percent.
(B) The average unemployment rate for the census tracts of the
proposed enterprise zone area was not less than five percentage
points above the statewide average for the most recent calendar year
as determined by the Employment Development Department.
(C) The applicant jurisdiction has, and can document that it has,
a unique distress factor affecting long-term economic development,
including, but not limited to, resource depletion, plant closure,
industry recession, natural disaster, or military base closure.
(5) Except as modified pursuant to paragraph (4), applications
shall be ranked by the appropriateness of the economic development
strategy and implementation plan, including all of the following:
(A) The extent the strategy clearly identifies the local
resources, incentives, and programs that will be made available to
the zone for meeting its goals and objectives.
(B) The extent the strategy provides for attracting private sector
investment.
(C) The extent the strategy includes related regional and
community-based partnerships for achieving the goals and objectives
in the strategy.
(D) The extent the strategy fits within the jurisdiction's overall
economic development strategy, including the extent the strategy and
implementation plan is appropriate for the local community.
(E) The extent the strategy addresses the hiring and retention of
unemployed or underemployed residents or low-income individuals in
the proposed zone and surrounding areas.
(F) The extent the strategy sets reasonable and measurable
benchmarks, goals, and objectives.
(G) The extent the strategy sets forth an appropriate funding
schedule for management, oversight, and program delivery within the
zone relative to the benchmarks, goals, and objectives in the
strategy.
(H) The extent that the economic development strategy has a
comprehensive incentive package for attracting private investment to
the enterprise zone.
(c) For applications for enterprise zone designation submitted on
or after January 1, 2012, both of the following shall apply:
(1) If any portion of the proposed zone is within, or previously
was within, the boundaries of a previously designated enterprise
zone, then the aggregate size of the proposed enterprise zone shall
not exceed the size of the previously designated enterprise zone by
more than 15 percent.
(2) If any portions of the proposed zone are within, or previously
were within, the boundaries of two or more previously designated
enterprise zones, the aggregate size of the proposed enterprise zone
shall not exceed the size of the largest single previously designated
enterprise zone by more than 15 percent.
(d) In evaluating applications for designation, the department
shall ensure that applications are not disqualified solely because of
technical deficiencies, and shall provide applicants with an
opportunity to correct the deficiencies. Applications shall be
disqualified if the deficiencies are not corrected within two weeks.
(e) Except upon dedesignation pursuant to subdivision (c) of
Section 7076.1, Section 7076.2, or Section 7085.1, a designation made
by the department shall be binding for a period of 15 years from the
date of the original designation.
(f) This section shall apply only to enterprise zone applications
for which the department has issued a solicitation for new enterprise
zone designations on or after January 1, 2007.