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AB-1445 Designated qualified opportunity zones: sale or lease of property.(2017-2018)

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Date Published: 09/17/2018 09:00 PM
AB1445:v93#DOCUMENT

Assembly Bill No. 1445
CHAPTER 380

An act to add Article 11 (commencing with Section 50574) to Chapter 2 of Part 1 of Division 1 of Title 5 of the Government Code, relating to local government.

[ Approved by Governor  September 14, 2018. Filed with Secretary of State  September 14, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1445, Reyes. Designated qualified opportunity zones: sale or lease of property.
Existing law generally governs the sale or lease of property owned by a city or county under various circumstances, including, among others, surplus property and property sold for economic development purposes.
Existing federal law authorizes the governor of a state to nominate a specified number of census tracts that meet certain requirements as a qualified opportunity zone and authorizes the Secretary of the Treasury to designate those tracts as qualified opportunity zones. Existing federal law provides certain federal tax incentives to a taxpayer who invests in a qualified opportunity fund, which is an investment vehicle organized for the purpose of investing in qualified opportunity zone property, as prescribed.
This bill would direct a city or county to require a qualified opportunity zone fund to provide, as part of any transaction for the sale or lease of property owned by the city or county that is located within a designated qualified opportunity zone to a qualified opportunity zone fund for use as a qualified opportunity zone business property, a timeline for completion of the investment activity on the property and information relating to the development of the property, as specified. The bill would require that information to be posted on the city or county’s Internet Web site. The bill would define various terms for these purposes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Article 11 (commencing with Section 50574) is added to Chapter 2 of Part 1 of Division 1 of Title 5 of the Government Code, to read:
Article  11. Property Within Designated Qualified Opportunity Zones

50574.
 (a) For purposes of this article, the following terms have the following meanings:
(1) “Designated qualified opportunity zone” means a qualified opportunity zone, as defined in subsection (a) of Section 1400Z-1 of Title 26 of the United States Code, that has received a designation pursuant to that section.
(2) “Qualified opportunity zone business property” has the same meaning as defined in subparagraph (D) of paragraph (2) of subsection (d) of Section 1400Z-2 of Title 26 of the United States Code.
(3) “Qualified opportunity zone fund” has the same meaning as defined in subsection (d) of Section 1400Z-2 of Title 26 of the United States Code.
(b) (1) A city or county shall require a qualified opportunity zone fund to provide all of the following as part of any transaction for the sale or lease to a qualified opportunity zone fund for use as a qualified opportunity zone business property of property owned by the city or county that is located within a designated qualified opportunity zone:
(A) A timeline for completion of the investment activity on the property.
(B) An estimation of the number of jobs that will be created as a result of the investment activity on the property.
(C) A summary of local workforce utilization strategies that will be employed as part of the investment activity on the property.
(2) A qualified opportunity zone fund shall provide the information required by paragraph (1) as part of its request for the sale or lease of property owned by the city or county.
(3) A city or county shall not sell or lease property to a qualified opportunity zone fund unless the qualified opportunity zone fund has submitted the information required by paragraph (1).
(c) The information required by paragraph (1) of subdivision (b) shall be posted on the city or county’s Internet Web site.