BILL NUMBER: AB 1554INTRODUCED BILL TEXT INTRODUCED BY Committee on Jobs, Economic Development, and the Economy (V. Manuel Perez (Chair), Logue (Vice Chair), Beall, Bill Berryhill, Block, Huber, and Salas) MARCH 11, 2009 An act to amend Sections 7085 and 7085.1 of the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST AB 1554, as introduced, Committee on Jobs, Economic Development, and the Economy. Economic development: Omnibus bill. Existing law requires the Department of Housing and Community Development to submit a report to the Legislature every 5 years evaluating specified effects of enterprise zones. This bill would revise the dates that the department is required to submit its reports. Existing law requires a geographically targeted economic development area (G-TEDA) to report to the Department of Housing and Community Development by October 1, 2008, and every 2 years thereafter, on progress made toward its existing goals and objectives and plans for the following 2-year period. This bill would make technical, nonsubstantive changes to this provision. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that this act by the Assembly Committee on Jobs, Economic Development, and the Economy is the committee's annual omnibus bill on geographically targeted economic development areas. SEC. 2. Section 7085 of the Government Code is amended to read: 7085. (a) Notwithstanding Section 7550.5, the department shall submit a report to the Legislature on or before December 31, 2010, addressing the period of January 1, 2004, to July 1, 2010, inclusive, and submit a report every five yearsbeginning January 1, 1998,thereafter, addressing the period of the five immediately preceding fiscal years, that evaluates the effect of the program on employment, investment, and incomes, and on state and local tax revenues in designated enterprise zones. The report shall include a department review of the progress and effectiveness of each enterprise zone, including, but not limited to, any efforts made regarding training of unemployed individuals pursuant to Section 7081. The Employment Development Department shall, for the purposes of the report, provide the department with existing data on unemployed individuals receiving training. The Franchise Tax Board shall make available to the department and the Legislature aggregate information on the dollar value of enterprise zone tax credits that are claimed each year by businesses. (b) An enterprise zone governing body shall provide information at the request of the department as necessary for the department to prepare the report required pursuant to subdivision (a). SEC. 3. Section 7085.1 of the Government Code is amended to read: 7085.1. (a) The governing board of the G-TEDA shall report to the department by October 1, 2008, and by that date every other year thereafter, on the activities of the G-TEDA in the previous two fiscal years and its plans for the current and following fiscal year. The biennial report shall include at least both of the following: (1) The progress the G-TEDA has made during the period covered by the report relative to its goals, objectives, and commitments set forth in its original application and the department's memorandum of understanding with the G-TEDA. (2) Identification of the previous two years' funding, including in-kind funding. The previous two years' funding levels shall be compared to the funding levels identified in its original application and the department's memorandum of understanding with the G-TEDA, and the amount identified in the previousyear'sbiennial report. An explanation of any meaningful discrepancies in these amounts shall be provided. (b) A copy of the biennial report developed pursuant to subdivision (a) shall also be submitted to the legislative bodies of the local jurisdictions comprising the G-TEDA. The progress of the G-TEDA in meeting the goals, objectives, and commitments set forth in the original application and the memorandum of understanding with the department shall be reviewed at least biennially by these legislativebodies, either as part of the approval of the G-TEDA's annual work plan or separately, at the discretion of the legislative bodybodies . (c) (1) G-TEDAs designated prior to January 1, 2007, shall have until April 15, 2008, to update their benchmarks, goals, objectives, and funding levels for administering the G-TEDA program, in order to make them measurable and conducive to the successful completion of the economic development strategy. The local legislative body and the department shall approve the updated goals and objectives. The updated goals and objectives shall be included as an update to the existing memorandum of understanding between the G-TEDA and the department. (2) G-TEDAs that fail to obtain approved updated goals and objectives by April 15, 2008, shall be dedesignated effective July 1, 2008. The Director of Housing and Community Development shall provide notice of prospective dedesignation to the local government no later than May 1, 2008. The director may authorize up to two 60-calendar-day extensions, if the local government and G-TEDA are acting in good faith and the additional time would allow them to meet the requirements of this subdivision. Businesses located within a G-TEDA that have been dedesignated shall continue to have access to tax incentives previously authorized within the G-TEDA pursuant to Section 7082.2. (3) G-TEDAs designated prior to January 1, 2007, are not required to implement the biennial reporting requirements of subdivisions (a) and (b) until October 1, 2009. (4) G-TEDAs that expire prior to January 1, 2010, are not required to meet the conditions of this subdivision. (d) The department shall biennially make available to the Legislature information related to the progress that each G-TEDA is making toward implementing its goals, objectives, and commitments set forth in the original application, the department's memorandum of understanding with the G-TEDA, and the G-TEDA's biennial report. SEC. 4. The Legislature finds and declares both of the following: (a) This is an act by the Assembly Committee on Jobs, Economic Development, and the Economy for code maintenance. (b) The changes made by this act to Section 7085.1 of the Government Code are technical, nonsubstantive corrections. ____ CORRECTIONS Heading--Authors line 1. ____