BILL NUMBER: SBX6 1INTRODUCED BILL TEXT INTRODUCED BY Senators Correa, Ashburn, Denham, Huff, and Walters (Principal coauthors: Assembly Members Blakeslee and Solorio) (Coauthors: Assembly Members Conway, Fletcher, Garrick, Hagman, Hall, Nava, Portantino, Tran, and Villines) OCTOBER 26, 2009 An act to amend Section 7074.2 of the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST SB 1, as introduced, Correa. Economic development: projects. The Enterprise Zone Act provides for the designation of enterprise zones by the Department of Community Housing and Development, based on the department's approval of applications from a city, county, or city and county with a geographic area meeting certain criteria. Certain entities within a designated enterprise zone may receive regulatory, tax, and other incentives for private investment and employment. Existing law provides that no more than 42 enterprise zones be designated at any one time pursuant to the act. Upon the expiration or termination of a designation, existing law authorizes the department to designate another enterprise zone to maintain a total of 42 enterprise zones. This bill would authorize the department to designate one special enterprise zone within the City of Fremont consisting of a geographical area encompassing a facility that manufactures automobiles and to designate, until June 30, 2010, an additional 10 special enterprise zones limited to one nonrenewable 15-year term. The bill would exclude these enterprise zones from the calculation of the overall number of enterprise zones authorized under the act. The bill would also make legislative findings and declarations as to the necessity of a special statute. 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. Section 7074.2 of the Government Code is amended to read: 7074.2. (a) Notwithstanding any otherprovision oflaw, a city, county, or a city and county may designate a joint powers authority to administer an enterprise zone. (b) No more than 42 enterprise zones may be designated at any one time pursuant to this chapter, including those deemed designated pursuant to subdivision (e) of Section 7073. Upon the expiration or termination of a designation, the department may designate another enterprise zone to maintain a total of 42 enterprise zones. (c) Notwithstanding subdivision (b), the department may designate one special enterprise zone pursuant to this chapter within the City of Fremont that consists of a geographical area encompassing a facility that manufactures automobiles. The enterprise zone designated under this subdivision shall not be included in the calculation of the overall number of enterprise zones authorized under this chapter. The applicant and application shall comply with the provisions of this chapter and the department's regulations governing enterprise zones specified in Title 25 (commencing with Section 8430) of the California Code of Regulations, except that the application shall not be subject to a competitive application process. (d) Notwithstanding subdivision (b), the department may, until June 30, 2010, designate an additional 10 special enterprise zones limited to one nonrenewable 15-year term. Enterprise zones designated under this subdivision shall not be included in the calculation of the overall number of enterprise zones authorized under this chapter. If the department has completed its 2009 competitive designation process as of the date the act amending this section goes into effect, it may use the results of that process to select the additional 10 special enterprise zones.(c)(e) Notwithstanding any other provision of law, an expiring enterprise zone that applies for a new enterprise zone designation pursuant to Section 7073 or 7073.1, and receives a conditional designation letter from the department, may offer, and a taxpayer doing business within the geographic boundaries of the new zone referenced in the conditional designation letter shall be eligible to receive, all enterprise zone benefits until the department makes a final designation or declines to redesignate the zone. The department shall make the effective date of the new zone the date of expiration of the previous designation and the term of the new zone shall begin on that date. SEC. 2. Due to the unique circumstances of the City of Fremont, with respect to the need for sustained employment and business development in the area, the Legislature hereby finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution.