Amended in Assembly May 15, 2014

Amended in Assembly May 7, 2014

Amended in Assembly April 1, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2517

Introduced by Assembly Member Daly

(Coauthors: Assembly Members begin delete Brown and Fox end delete begin insert Brown, Cooley, Eggman, Fox, and Hall end insert )

( begin delete Coauthor: Senator end delete begin insert Coauthors: Senators Cannella, Correa, and end insert Hueso)

February 21, 2014

An act to amend Section 7069 of the Government Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 2517, as amended, Daly. Economic development: taxation: credits: certifications.

The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws, including a hiring credit for qualified taxpayers who hire qualified employees, as defined, within enterprise zones and local agency military base recovery areas, subject to specified criteria and requirements. Those laws require that a taxpayer obtain a certification from the Employment Development Department, as permitted by federal law, the local county or city Job Training Partnership Act administrative entity, the local county GAIN office or social services agency, or the local government administering a specified area or zone that provides that a qualified employee meets the specified eligibility requirements. Existing law authorizes any local entity formerly authorized to issue a certification that provides that a qualified employee, qualified disadvantaged individual, or qualified displaced employee meets specified eligibility requirements, to continue to accept applications for certification and to issue the certifications up to but no later than January 1, 2015.

This bill would instead authorize those local entities to continue to accept applications for the certification up to but no later than January 1, 2015, and would provide that a local entity has until January 1, 2016, to issue the certifications.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 7069 of the Government Code is amended
to read:

7069.  

Notwithstanding the repeal of Chapter 12.8 (commencing
with Section 7070), Chapter 12.93 (commencing with Section
7097), and Chapter 12.97 (commencing with Section 7105) of the
Government Code by Chapter 69 of the Statutes of 2013, a local
entity formerly authorized by one or more of those chapters of the
Government Code to issue a certification that provides that a
qualified employee, qualified disadvantaged individual, or qualified
displaced employee meets the specified eligibility requirements
under Section 17053.34, 17053.46, 17053.47, 17053.74, 23622.7,
23622.8, 23634, or 23646 of the Revenue and Taxation Code may
continue to accept applications for the certification up to but no
later than January 1, 2015. A local entity shall have until January
1, 2016, to issue the certifications.

SEC. 2.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to extend the deadline to ensure that taxpayers can timely
obtain certifications from local entities begin delete for purposes of end delete begin insert to be eligible
for end insert income tax hiring credits for employees hired within enterprise
zones and local agency military base recovery areas, it is necessary
that this act take immediate effect.