BILL NUMBER: AB 2673INTRODUCED BILL TEXT INTRODUCED BY Committee on Jobs, Economic Development, and the Economy (Assembly Members V. Manuel Prez (Chair), Beall, Block, and Hueso) MARCH 5, 2012 An act to amend Section 7085.1 of, and to add Section 7072.3 to, the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST AB 2673, as introduced, Committee on Jobs, Economic Development, and the Economy. 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 define, for purposes of the act, the term "census tract" to include the term "census block group," and modify specified reporting requirements to the Department of Housing and Community Development. 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 7072.3 is added to the Government Code, to read: 7072.3. For purposes of this chapter, "census tract" shall also mean "census block group." SEC. 2. 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 leastbothall 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. (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) The following information based on the certification applications approved in the zones relating to the hiring credit: (A) The number of jobs for which certifications have been issued. (B) The number of new employees for whom certifications have been issued. (C) The number of employees replacing previous employees for whom certifications were issued. (D) The number of employees by qualified employee category pursuant to Sections 17053.74 and 23622.7 of the Revenue and Taxation Code. (E) The total range of, and the average, median, and mean, employee wage rates that were certified. (F) The number of businesses obtaining certification for qualified employees. (G) The industry classification, based on the North American Industry Classification System, of businesses obtaining certification of qualified employees. (H) The distribution of employee certifications among industry sectors based on the North American Industry Classification System. (I) The distribution of employee certifications by the annual receipts and asset value of the business obtaining qualified employee certifications. (J) The number of state-certified small businesses that submitted qualified employee certification applications. (K) The number of state-certified, disabled veteran-owned business enterprises that submitted applications. (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 legislative bodies, either as part of the approval of the G-TEDA's annual work plan or separately, at the discretion of the legislative body. (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 biennial report.