BILL NUMBER: AB 1411AMENDED BILL TEXT AMENDED IN SENATE AUGUST 21, 2012 AMENDED IN SENATE AUGUST 6, 2012 AMENDED IN SENATE AUGUST 15, 2011 AMENDED IN SENATE JULY 12, 2011 AMENDED IN SENATE JUNE 28, 2011 INTRODUCED BY Assembly Members V. Manuel Prez and Alejo (Principal coauthor: Senator DeSaulnier) (Coauthor:SenatorRubioCoauthors: Senators Price and Rubio ) MARCH 10, 2011 An act to amend Sections 7071, 7072, 7073.1, 7076, 7076.1, 7081, 7085, 7085.1,and7085.5 , and 7114.2 of the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST AB 1411, as amended, V. Manuel Prez. Economic development: enterprise zones. The Enterprise Zone Act provides for the designation and oversight by the Department of Housing and Community Development of various types of economic development areas throughout the state, including enterprise zones, targeted tax areas, local agency military base recovery areas (LAMBRAs), and manufacturing enhancement areas, collectively known as geographically targeted economic development areas, or G-TEDAs. Pursuant to these provisions, qualifying entities in those areas may receive certain tax and regulatory incentives. This bill would revise various definitions for purposes of the act and modify specified requirements for designating and administering enterprise zones, LAMBRAs, and G-TEDAs , collectively. The bill would impose new requirements on the Department of Housing and Community Development with respect to the enterprise zone program and modify department and Franchise Tax Board reporting requirements. Existing law, the Enterprise Zone Act, authorizes the Department of Housing and Community Development to assess a fee of not more than $15 on each enterprise zone and manufacturing enhancement area for each application for issuance of a certificate pursuant to specified tax credit provisions. Existing law, the Local Agency Military Base Recovery Area Act, authorizes the Department of Housing and Community Development to assess a fee of not more than $15 on each local agency military base recovery area for each application for issuance of a certificate pursuant to specified tax credit provisions. This bill would instead authorize the department to charge a fee for those applications not to exceed the reasonable cost of administering the Enterprise Zone Act or the Local Agency Military Base Recovery Area Act, respectively, but not to exceed $20. The bill would require any increase in the fee higher than the amount that was charged by the department as of January 1, 2013, to be adopted by regulation. 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 7071 of the Government Code is amended to read: 7071. The Legislature finds and declares as follows: (a) The health, safety, and welfare of the people of California depend upon the development, stability, and expansion of private business, industry, and commerce, and there are certain areas within the state that are economically depressed due to a lack of investment in the private sector. Therefore, it is declared to be the purpose of this chapter to help stabilize local communities, alleviate poverty, and enhance the state's economic prosperity through the streamlining and expediting of licensing and permitting of development-related activities and the implementation of publicly and privately funded programs and services that stimulate business and industrial growth in the depressed areas of the state. (b) The geographically targeted economic development area (G-TEDA) programs are based on the economic principle that targeting significant incentives to lower income communities allows these communities to more effectively compete for new businesses and retain existing businesses, which results in increased tax revenues, less reliance on social services, and lower public safety costs. Residents and businesses also directly benefit from these more sustainable economic conditions through improved neighborhoods, business expansion, and job creation. (c) Therefore, it is in the economic interest of the state to have one strong, combined, and business-friendly and community development-friendly incentive program to help attract business and industry to the state, to help retain and expand existing state business and industry, and to create increased job opportunities for all Californians. (d) This chapter shall not be construed to infringe upon regulations relating to the civil rights, equal employment rights, equal opportunity rights, or fair housing rights of any person. SEC. 2. 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) (A) 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. (B) A geographic area within census tracts of the proposed eligible area with a median household income for a family of four that does not exceed 80 percent of the statewide median income for the most recently available calendar year, as well as meeting at least one of the following criteria: (i) 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. (ii) The census tracts for the proposed eligible area are served by public schools that have more than 70 percent of the children enrolled in the federal free lunch program. (iii) The area within the proposed zone has experienced significant distress factors, as defined by the department, including, but not limited to, a history of significant gang-related activity, high crime rates, or a significant number of plant or business closures, or all of these. (2) The amendments made to this subdivision during the 2011-12 Regular Session shall apply only to requests for proposals issued on or after January 1, 2013. (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 7073that includes both of the following:(1) An eligible area.(2) Either or both of the following:(A) A qualifying commercial area, as defined by the department.(B)A qualifying industrial area, as defined by the department. (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, 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) "Rural city" means a city with a population under 75,000 that, in whole or in part, is located in an area designated as "frontier" or "rural" on the California Medical Service Study Areas map, as it was published in September 2010 or more recently updated by the Office of Statewide Health Planning and Development. (j) (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 Census Bureau data available at the time of the original enterprise zone application or the most recent United States Census Bureau 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 Bureau 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. SEC. 3. Section 7073.1 of the Government Code is amended to read: 7073.1. (a) A city, county, or city and county with an eligible area within its jurisdiction may complete a preliminary application for designation as an enterprise zone. The applying entity shall establish definitive boundaries for the proposed enterprise zone and the targeted employment area. An entity may propose zones in areas with noncontiguous boundaries, and the department may designate those areas as zones if the director determines both of the following: (1) The noncontiguous area is needed to implement the applicant's economic development strategy. (2) The excluded area between the proposed zone boundaries would not, based on the proposed economic strategy, also benefit from the zone designation. (b) (1) In designating enterprise zones, the department shall select from the applications submitted those proposed enterprise zones that, upon a comparison of all of the applications submitted, indicate that they propose the most appropriate economic development strategy and implementation plan utilizing state and local programs and incentives to create jobs, attract private sector investment, and improve the economic conditions within the zone proposed. The department shall prescribe a format that promotes succinct and focused strategies and plans, and set minimum standards for the strategies and plans. For the purposes of this subdivision, important elements of a strategy or plan may include, but are not limited to, all of the following: (A) An assessment of current financial and community development strengths, needs, and opportunities. (B) A framework for investment of time, action, and money. (C) Clear articulation of goals. (D) Measurable objectives, including targets. (E) Proposed implementation activities and tasks, including timeframes, and a framework for evaluating performance, including qualitative and quantitative benchmarks. (F) An identification of local resources, including incentives, the jurisdiction will utilize to implement the strategy or plan and how those resources will help to leverage or maximize the benefit of state resources that become available for enterprise zone communities. (2) For purposes of this subdivision, local resources may include, but are not limited to, all of the following: (A) The suspension or relaxation of locally originated or modified building codes, zoning laws, general development plans, or rent controls. (B) The elimination or reduction of fees for applications, permits, and local government services. (C) The establishment of a streamlined permit process. (D) Elimination or reduction of construction taxes or business license taxes. (E) The provision or expansion of infrastructure. (F) The targeting of federal block grant moneys, including small cities, education, and health and welfare block grants. (G) The targeting of economic development grants and loan moneys, including grant and loan moneys provided by the United States Department of Housing and Urban Development. (H) The targeting of state and federal job disadvantaged and vocational education grant moneys, including moneys provided by the federal Workforce Investment Act of 1998 (Public Law 105-220), or its successor. (I) The targeting of federal or state transportation grant moneys. (J) The targeting of federal or state low-income housing and rental assistance moneys. (K) The use of tax allocation bonds, special assessment bonds, bonds under the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5), industrial development bonds, revenue bonds, private activity bonds, housing bonds, bonds issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5), certificates of participation, hospital bonds, redevelopment bonds, school bonds, and all special provisions provided for under federal tax law for enterprise community or empowerment zone bonds. (L)Redevelopment tax increment moneys and localLocal financing authorities. (M) Federal Workforce Investment Act moneys and programs funded with those moneys. (N) Federal Community Development Block Grant Program moneys. (O) CalWORKs funding and other related resources. (P) Local education entities, including K-12, adult education, community colleges, and public and private universities. (3) When designating new enterprise zones, the department shall take into consideration the location of existing zones and make every effort to locate new zones in a manner that will not adversely affect any existing zones. (4) When reviewing and ranking new enterprise zone applications, the department shall give bonus points to applications from jurisdictions that meet minimum threshold points and at least both of the following criteria: (A) The percentage of households within the census tracts of the proposed enterprise zone area, the income of which is below the poverty level, is at least 17.5 percent. (B) The average unemployment rate for the census tracts of the proposed enterprise zone area was not less than five percentage points above the statewide average for the most recent calendar year as determined by the Employment Development Department. (5) Except as modified pursuant to paragraph (4), applications shall be ranked by the appropriateness of the economic development strategy and implementation plan, including all of the following: (A) The extent the strategy clearly identifies the local resources, incentives, and programs that will be made available to the zone for meeting its goals and objectives. (B) The extent the strategy provides for attracting private sector investment. (C) The extent the strategy includes related regional and community-based partnerships for achieving the goals and objectives in the strategy. (D) The extent the strategy fits within the jurisdiction's overall economic development strategy, including the extent the strategy and implementation plan is appropriate for the local community. (E) The extent the strategy addresses the hiring and retention of unemployed or underemployed residents or low-income individuals in the proposed zone and surrounding areas. (F) The extent the strategy sets reasonable and measurable benchmarks, goals, and objectives. (G) The extent the strategy sets forth an appropriate funding schedule for management, oversight, and program delivery within the zone relative to the benchmarks, goals, and objectives in the strategy. (H) The extent that the economic development strategy has a comprehensive incentive package for attracting private investment to the enterprise zone. (c) For applications for enterprise zone designation submitted on or after January 1, 2013, both of the following shall apply: (1) If any portion of the proposed zone is within, or previously was within, the boundaries of a previously designated enterprise zone, the aggregate size of the proposed zone shall not exceed the size of the previously designated and expanded enterprise zone by more than 15 percent.For a proposed zone located in a rural city or in a county with a total population under 275,000, the proposed zone shall not exceed the size of the previously designated and expanded enterprise zone by more than 25 percent.(2) If any portions of the proposed zone are within, or previously were within, the boundaries of two or more previously designated enterprise zones, the aggregate size of the proposed zone shall not exceed the size of the largest single previously designated and expanded enterprise zone by more than 15 percent. (d) In evaluating applications for designation, the department shall ensure that applications are not disqualified solely because of technical deficiencies, and shall provide applicants with an opportunity to correct the deficiencies. Applications shall be disqualified if the deficiencies are not corrected within two weeks. (e) Except upon dedesignation pursuant to subdivision (c) of Section 7076.1, Section 7076.2, or Section 7085.1, a designation made by the department shall be binding for a period of 15 years from the date of the original designation. (f) The applicant shall be required to begin implementation of the enterprise zone plan contained in the final application within six months after notification of final designation, or the enterprise zone shall be dedesignated. (g) (1) This section shall apply only to enterprise zone applications for which the department has issued a solicitation for new enterprise zone designations on or after January 1, 2007. (2) The amendments made to this section during the 2011-12 Regular Session shall apply only to enterprise zone applications for which the department has issued a solicitation for new enterprise zone designations on or after January 1, 2013. SEC. 4. Section 7076 of the Government Code is amended to read: 7076. (a) The department shall serve as a liaison between the state and enterprise zone residents, businesses, workers, nonprofit organizations, and local governments. State agencies and departments shall affirmatively support their statutory responsibilities under this chapter and, consistent with their statutory duties, respond to requests made by and on the behalf of an enterprise zone. (b) (1) The department shall provide technical assistance to the enterprise zones designated pursuant to this chapter with respect to all of the following activities: (A) Furnish limited onsite assistance to the enterprise zones when appropriate. (B) Ensure that the locality has developed a method to make residents, businesses, and neighborhood organizations aware of the opportunities to participate in the program. (C) Help the locality develop a marketing program for the enterprise zone. (D) Coordinate activities of other state agencies regarding the enterprise zones. (E) Monitor the progress of the program. (F) Help businesses to participate in the program. (2) Notwithstanding existing law, the provision of services in subparagraphs (A) to (F), inclusive, shall be a high priority of the department. (3) The department may, at its discretion, undertake other activities in providing management and technical assistance for successful implementation of this chapter. (c) The department shall assess a feeof fifteen dollars ($15)on each enterprise zone and manufacturing enhancement area for each application for issuance of a certificate pursuant to subdivision (j) of Section 17053.47 of, subdivision (c) of Section 17053.74 of, subdivision (c) of Section 23622.7 of, or subdivision (i) of Section 23622.8 of, the Revenue and Taxation Code , not to exceed the reasonable cost of administering this chapter, but not to exceed twenty dollars ($20). If the department increases the fee higher than the amount that was charged by the department as of January 1, 2013, then the department shall adopt the fee increase by regulation . The department shall collect the fee for deposit into the Enterprise Zone Fund, pursuant to Section 7072.3, for the costs of administering this chapter. The enterprise zone or manufacturing enhancement area administrator shall collect this fee at the time an application is submitted for issuance of a certificate. (d) (1) (A) The department shall maintain, and post on its Internet Web site, a catalog of all administrative memoranda in effect that implement this chapter, including the subject matter of the memoranda and the effective dates of their publication, modification, or repeal, along with the text of the memoranda. (B) The department shall post on its Internet Web site the publication, modification, or repeal of any of those administrative memoranda, within 10 business days of that publication, modification, or repeal. (2) The department shall post on its Internet Web site enterprise zone and targeted employment area boundary approvals, modifications, and repeals within 10 business days of the approval, modification, or repeal becoming final. SEC. 5. Section 7076.1 of the Government Code is amended to read: 7076.1. (a) The department may audit the program of any jurisdiction in any designated G-TEDA at any time during the duration of the designation, as appropriate. However, the department shall audit each G-TEDA at least once every five years from the date of designation or the operative date of this section, whichever is the latest. The matters to be examined in the course of an audit shall include an examination of the progress made by the G-TEDA toward meeting the goals, objectives, and commitments set forth in its original application and the department's memorandum of understanding with the G-TEDA. (b) The department shall, for each audit, determine a result of superior, pass, or fail in accordance with subdivision (c). The results of each audit shall be based upon the success of the G-TEDA in making substantial and sustained efforts since the later of its designation or last audit to meet the standards, criteria, and conditions contained in the application and the memorandum of understanding (MOU) between the department and the G-TEDA, as may be amended pursuant to the agreement of the G-TEDA and the department. In each audit, the department shall focus upon the G-TEDA's use of the marketing plan, local incentives, financing programs, job development, and program management as described in the application and the MOU. The department shall also evaluate the vouchering plan, staffing levels, budget, and elements unique to each application. (c) For purposes of subdivision (b), an audit determination of superior, pass, or fail shall be made in accordance with the following: (1) A G-TEDA will be determined to be superior if each jurisdiction comprising the G-TEDA does all of the following: (A) Meets 90 to 100 percent of its goals, objectives, and commitments as defined in its application, most recent audit, biennial report, and memorandum of understanding with the department, and as determined by the department in consultation with the G-TEDA. An equivalent or similar commitment may be substituted for an existing commitment of a G-TEDA if it is determined by the department that an original commitment was not realistically practical or is no longer relevant. (B) Demonstrates that it has reviewed and updated its goals, objectives, and commitments as defined in its original application, most recent audit, biennial report, and memorandum of understanding with the department. (C) Identifies to the department's satisfaction that it has incorporated economic development commitments in addition to those commitments previously made in its application. (2) (A) A G-TEDA will be determined to be passing if each jurisdiction comprising the area meets 75 to 90 percent of its goals, objectives, or commitments as defined in its original application, most recent audit, biennial report, and memorandum of understanding with the department, and as determined by the department in consultation with the G-TEDA. An equivalent or similar commitment may be substituted for an existing commitment of a G-TEDA if it is determined by the department that an original commitment was not realistically practical or is no longer relevant. (B) Any G-TEDA that is determined to be passing may appeal in writing to the department for a determination of superior. Only one appeal may be filed pursuant to this subparagraph with respect to a determination by the department, and may be filed no later than 30 days after the G-TEDA's receipt of the determination to which the appeal pertains. The department shall respond in writing to any appeal that is properly filed pursuant to this subparagraph within 60 days of the date of that filing. (3) (A) A G-TEDA will be determined to be failing if any jurisdiction comprising the G-TEDA fails to meet or exceed 75 percent of its goals, objectives, or commitments as defined in its original application, most recent audit, biennial report, and memorandum of understanding with the department, and as determined by the department in consultation with the G-TEDA. An equivalent or similar commitment may be substituted for an existing commitment of a G-TEDA if it is determined by the department that an original commitment was not realistically practical or is no longer relevant. (B) Any G-TEDA that is determined to be failing shall enter into a written agreement with the department that specifies those items that the G-TEDA is required to remedy or improve. Failure of the G-TEDA and the department to negotiate and enter into a written agreement as so described within 60 days of the last day upon which the department is required to deliver a response letter pursuant to subparagraph (C) of paragraph (4) shall result in the dedesignation of the G-TEDA on January 1 immediately following the department's written notice of dedesignation to the G-TEDA. (C) A written agreement entered into pursuant to this paragraph shall be for a six-month period. If, upon the expiration of the agreement, the department determines that the G-TEDA has not met or implemented at least 75 percent of the conditions set forth in the agreement, the department shall, after immediately providing written notification to each jurisdiction comprising the G-TEDA that the G-TEDA is to be dedesignated. Dedesignation of the G-TEDA is effective on the first day of the month next following the date upon which the agreement expired. If, upon expiration of the agreement, the department determines that the G-TEDA has met or implemented at least 75 percent of the conditions set forth in the agreement, the department shall do either of the following: (i) Allow the G-TEDA an additional year, or a longer period in the department's discretion, to meet or implement those conditions in their entirety. (ii) Pursuant to written notice provided immediately to each jurisdiction that comprises the G-TEDA that the G-TEDA is to be dedesignated, dedesignate the G-TEDA effective on January 1 immediately following the date of the department's written notification of dedesignation to those jurisdictions. (D) Any business, located within any jurisdiction that comprises a G-TEDA that has been dedesignated, that has elected to avail itself of any state tax incentive specifically applicable to a G-TEDA for any taxable or income year beginning prior to the dedesignation of the G-TEDA may, to the extent the business is otherwise still eligible for those incentives, continue to avail itself of those incentives for a period equal to the remaining life of the G-TEDA. However, any business, located within any jurisdiction that comprises a G-TEDA that has been dedesignated, that has not availed itself of any state tax incentive in the manner described in the preceding sentence may not, after dedesignation of the G-TEDA, avail itself of any state incentive specifically applicable to a G-TEDA. (4) (A) Notwithstanding paragraphs (1) to (3), inclusive, a G-TEDA shall be determined to be failing if any jurisdiction comprising the G-TEDA, in the determination of the director, provides funding support in at least three of the previous five years at a level that is less than 75 percent of the amount committed to in the G-TEDA's memorandum of understanding with the department. (B) In the event that a G-TEDA is determined to be failing pursuant to this paragraph, subparagraph (B) of paragraph (3) shall apply. (C) Any G-TEDA that is determined to be failing pursuant to this paragraph may appeal in writing to the department. The appeal shall be filed within 30 days of the G-TEDA's receipt of the determination to which the appeal pertains. The department shall respond in writing to any appeal that is properly filed within 60 days of the date of filing. (d) In undertaking its audit responsibilities pursuant to this section, the department shall seek appropriate opportunities to provide technical assistance and training to help G-TEDAs address inadequacies identified through the audit of the program. Assistance may include, but is not limited to, workshops, mentoring programs, and referrals to other federal, state, and local public and private entities. (e) (1) For purposes of this section, "dedesignation" means that a G-TEDA is no longer a G-TEDA for purposes of either Section 7073 or 7085. (2) Upon notification by the department of the dedesignation of a G-TEDA and the end of the appeal period with respect to that dedesignation, the department shall initiate an application process for a new designation as provided in Section 7073, 7073.8, 7085, 7097, or 7114. (f) In addition to any other oversight activities that the department determines are appropriate and necessary, the department shall review the progress reports submitted by a G-TEDA pursuant to Section 7085.1 and determine whether an audit is warranted. SEC. 6. Section 7081 of the Government Code is amended to read: 7081. (a) Notwithstanding any other provision of state law, and to the extent permitted by federal law, the Employment Development Department and the State Department of Education shall give high priority to the training of unemployed individuals who reside in a targeted employment area or a designated enterprise zone. (b) When developing workforce development and training plans and strategies, including, but not limited to, plans, activities, and responsibilities related to Section 14010 of the Unemployment Insurance Code or accessing or allocating funds from the federal Workforce Development Act of 1998 (Public Law 105-220), a state entity shall consider how the G-TEDA programs could be integrated so as to maximize the benefits to workers and businesses.(c) The Employment Development Department shall, consistent with its duties to assist unemployed workers who are registered in the one-stop career centers, provide letters to unemployed prospective employees that could be used to certify their eligibility as a person participating in a program developed pursuant to the federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2081 et seq.).(d)(c) The department may assist localities in designating local business, labor, and education consortia to broker activities between the employment community and educational and training institutions. Any available discretionary funds may be used to assist the creation of those consortia.(e)(d) Local education entities that administer student work permits shall consider how enterprise zone program hiring credits could be used to benefit lower income students who apply for work permits at their offices. SEC. 7. Section 7085 of the Government Code is amended to read: 7085. (a) In addition to the information it makes available biennially pursuant to subdivision (e) of Section 7085.1, the department shall submit a report to the Legislature every six years that evaluates the effect of the program on retaining and increasing employment among targeted populations as described in subdivision (c), public and private 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 and placement of unemployed individuals pursuant to Section 7081. The Employment Development Department, the State Department of Social Services, and the State Department of Education shall, for the purposes of the report, provide the department with existing data on unemployed individuals receiving training. The Department of General Services shall provide information on the use and outcomes that the department tracks relating to the enterprise zone procurement preference. (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). (c) Targeted populations included within the report required pursuant to subdivision (a) shall include, but not be limited to, the disabled, disabled veterans, individuals formerly on forms of federal and state assistance, individuals within the targeted employment areas, ex-offenders, and veterans. (d) The base year for the report required pursuant to subdivision (a) shall be the calendar year commencing January 1, 2013. SEC. 8. 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 all 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 previous biennial report. An explanation of any meaningful discrepancies in these amounts shall be provided. (3) Identification of the financial value of local incentives provided during the report period, and of federal and other state resources accessed to serve the residents, workers, and businesses in the G-TEDA. (4) Information aggregated from certification applications approved in the zones relating to the hiring credit. The type of information may include, but not be limited to, the number of jobs for which certifications have been issued and the wage rates and the number and size of the businesses utilizing the program. (5) Information on the number of state-certified disabled veteran-owned business enterprises that submitted applications for employee certification. (b) 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 the legislative bodies comprising the G-TEDA. (c) 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 this section and Section7085.17085 . (d) (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. (e) The department shall biennially, beginning on or before December 31, 2008, 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. (f) G-TEDAs that fail to submit a timely biennial report to the department shall be audited pursuant to Section 7076.1. This subdivision shall apply to all reports due on or after October 1, 2013. SEC. 9. Section 7085.5 of the Government Code is amended to read: 7085.5.(a)The Franchise Tax Board shall annually make available to the department and the Legislature information, to the extent it is reasonably available, by enterprise zone and by city or county, on the dollar value of the G-TEDA tax credits and other G-TEDA tax incentives that are claimed each year by businesses and shall design and distribute forms and instructions that will allow the following information to be accessible:(1)(a) The total number of jobs for which the hiring credits are claimed.(2)(b) The number of businesses claiming each individual tax credit.(3)(c) The nature of the business claiming each individual tax credit.(4)(d) The distribution of zone tax incentives among industry groups.(5)(e) The distribution of zone tax incentives by the annual receipts and asset value of the business claiming each individual tax credit.(6)(f) The total amount of capital investments made, as well as the value of the total amount of credit claimed by businesses under the sales and use tax credit.(7)(g) Any other information that the Franchise Tax Board and the department deem to be important in determining the cost to, and benefit derived by, the taxpayers of the state.(b) In developing this information, the Franchise Tax Board shall review returns from personal and corporate tax returns. The totals for each G-TEDA tax incentive shall, at a minimum, be reported separately.SEC. 10. Section 7114.2 of the Government Code is amended to read: 7114.2. (a) The department shall assess each LAMBRA a feeof fifteen dollars ($15)for each application for issuance of a certificate pursuant to subdivision (c) of Section 17053.46 of the Revenue and Taxation Code and subdivision (c) of Section 23646 of the Revenue and Taxation Code , not to exceed the reasonable cost of administering this chapter, but not to exceed twenty dollars ($20). If the department increases the fee higher than the amount that was charged by the department as of January 1, 2013, then the department shall adopt the fee increase by regulation . The department shall collect the fee for deposit into the Enterprise Zone Fund, pursuant to Section 7072.3, for the costs of administering this chapter. The LAMBRA administrator shall collect this fee at the time an application is submitted for issuance of a certificate. (b) The department shall adopt regulations governing the imposition and collection of fees pursuant to this section and the issuance of certificates pursuant to subdivision (c) of Section 17053.46 of the Revenue and Taxation Code and subdivision (c) of Section 23646 of the Revenue and Taxation Code. The regulations shall provide for a notice or invoice to fee payers as to the amount and purpose of the fee. The adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding subdivision (e) of Section 11346.1, the regulations shall remain in effect for no more than 360 days unless the agency complies with all the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 as required by subdivision (e) of Section 11346.1.