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AB-1344 Enterprise zones.(2013-2014)

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CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1344

Introduced by Assembly Member Mansoor

February 22, 2013

An act to amend Section 7072 of the Government Code, relating to enterprise zones.


LEGISLATIVE COUNSEL'S DIGEST


AB 1344, as introduced, Mansoor. Enterprise zones.
The Enterprise Zone Act provides for the designation of zones according to specified criteria, pursuant to which certain entities within each zone may receive regulatory, tax, and other incentives for economic and employment development and private investment. Existing law provides definitions for the purposes of the act.
This bill would make a technical, nonsubstantive change to this provision.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 7072 of the Government Code is amended to read:

7072.
 For purposes of this chapter, the following definitions shall apply:
(a) “Department” means the Department of Housing and Community Development.
(b) “Date of original designation” means the earlier of the following:
(1) The date the eligible area receives designation as an enterprise zone by the department pursuant to this chapter.
(2) In the case of an enterprise zone deemed designated pursuant to subdivision (e) of Section 7073, the date the enterprise zone or program area received original designation by the former Trade and Commerce Agency pursuant to Chapter 12.8 (commencing with Section 7070) or Chapter 12.9 (commencing with Section 7080), as those chapters read prior to January 1, 1997.
(c) “Eligible area” means any of the following:
(1) An area designated as an enterprise zone pursuant to Chapter 12.8 (commencing with Section 7070), as it read prior to January 1, 1997, or as a targeted economic development area, neighborhood development area, or program area pursuant to Chapter 12.9 (commencing with Section 7080), as it read prior to January 1, 1997.
(2) A geographic area that, based upon the determination of the department, fulfills at least one of the following criteria:
(A) The proposed geographic area meets the Urban Development Action Grant criteria of the United States Department of Housing and Urban Development.
(B) The area within the proposed eligible area has experienced plant closures within the past two years affecting more than 100 workers.
(C) The city or county has submitted material to the department for a finding that the proposed geographic area meets criteria of economic distress related to those used in determining eligibility under the Urban Development Action Grant Program and is therefore an eligible area.
(D) The area within the proposed zone has a history of gang-related activity, whether or not crimes of violence have been committed.
(3) A geographic area that meets at least two of the following criteria:
(A) The census tracts within the proposed eligible area have an unemployment rate not less than 3 percentage points above the statewide average for the most recent calendar year as determined by the Employment Development Department.
(B) The county of the proposed eligible area has more than 70 percent of the children enrolled in public school participating in the federal free lunch program.
(C) The median household income for a family of four within the census tracts of the proposed eligible area does not exceed 80 percent of the statewide median income for the most recently available calendar year.
(d) “Enterprise zone” means any area within a city, county, or city and county that is designated as an enterprise zone by the department in accordance with Section 7073.
(e) “Governing body” means a county board of supervisors or a city council, as appropriate.
(f) “G-TEDA” means a geographically targeted economic development area, which is an area designated as an enterprise zone, a Manufacturing Enhancement Area, manufacturing enhancement area, a targeted tax area, or a local agency military base recovery area.
(g) “High-technology industries” includes, but is not limited to, the computer, biological engineering, electronics, and telecommunications industries.
(h) “Resident,” unless otherwise defined, means a person whose principal place of residence is within a targeted employment area.
(i) (1) “Targeted employment area” means an area within a city, county, or city and county that is composed solely of those census tracts designated by the United States Department of Housing and Urban Development as having at least 51 percent of its residents of low- or moderate-income levels, using either the most recent United States Department of Census data available at the time of the original enterprise zone application or the most recent census data available at the time the targeted employment area is designated to determine that eligibility. The purpose of a “targeted employment area” is to encourage businesses in an enterprise zone to hire eligible residents of certain geographic areas within a city, county, or city and county. A targeted employment area may be, but is not required to be, the same as all or part of an enterprise zone. A targeted employment area’s boundaries need not be contiguous. A targeted employment area does not need to encompass each eligible census tract within a city, county, or city and county. The governing body of each city, county, or city and county that has jurisdiction of the enterprise zone shall identify those census tracts whose residents are in the most need of this employment targeting. Only those census tracts within the jurisdiction of the city, county, or city and county that has jurisdiction of the enterprise zone may be included in a targeted employment area.
(2) At least a part of each eligible census tract within a targeted employment area shall be within the territorial jurisdiction of the city, county, or city and county that has jurisdiction for an enterprise zone. If an eligible census tract encompasses the territorial jurisdiction of two or more local governmental entities, all of those entities shall be a party to the designation of a targeted employment area. However, any one or more of those entities, by resolution or ordinance, may specify that it shall not participate in the application as an applicant, but shall agree to complete all actions stated within the application that apply to its jurisdiction, if the area is designated.
(3) Each local governmental entity of each city, county, or city and county that has jurisdiction of an enterprise zone shall approve, by resolution or ordinance, the boundaries of its targeted employment area, regardless of whether a census tract within the proposed targeted employment area is outside the jurisdiction of the local governmental entity.
(4) (A) Within 180 days of updated United States census data becoming available, each local governmental entity of each city, county, or city and county that has jurisdiction of an enterprise zone shall approve, by resolution or ordinance, boundaries of its targeted employment area reflecting the new census data. If no changes are necessary to the boundaries based on the most current census data, the enterprise zone may send a letter to the department stating that a review has been undertaken by the respective local governmental entities and no boundary changes are required.
(B) A targeted employment area boundary approved prior to the 2000 United States census data becoming available that has not been reviewed and its boundaries revised to reflect the most recent census data, shall be reviewed and updated, and a new resolution or ordinance submitted by the appropriate local governmental entity to the department, by July 1, 2007. However, enterprise zones that expire on or prior to December 31, 2008, shall be exempt from the update requirement.