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Home My WebLink AboutLegislative Review - SB 6 (Ducheny) - Enterprise ZonesYG? CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON SENATE BILL 6 (DUCHENY) AT ITS MEETING OF JANUARY 18, 2005 DATE: January 27, 2005 CONTENTS: SB 6 Language Recommendation: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of January 18, 2005, and direct staff to prepare a letter of support for the Mayor's signature with regard to SB 6 (Duchey) relative to Enterprise Zones. Executive Summary: Passage of SB 6 would extend the life of enterprise zones by five years. Background: The Enterprise Zone Act provides for the designation by the Department of Housing and Community Development of enterprise zones in the State for 15 years from the date of any original designation. Enterprise zones were established at various locations throughout the State of California to attract small businesses to specified areas by providing regulatory, employment, and tax breaks, as well as other incentives, which might make it more desirable for various of types of businesses to locate within the State. Passage of SB 6 would extend the life of enterprise zones throughout the State to a total of 20 years. Because the need to attract various types and sizes of businesses to areas of the State which might not typically be thought of as business friendly and in an effort to continue to make California a business friendly state, the Legislative Review Committee recommends that the City Council support SB 6 and direct staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature. PATRICIA SCULLY, CFEE SENIOR MANAGEMENT ANA SHEILA R. GIL IGAN ASSISTANT CITY MA : ' ER/PIO it1/41- PAUL S. GIBSON DIR OF FINANCE/CITY TREASURER CARLOS L. O EGA CITY MANAG R SB 6 Senate Bill - INTRODUCED Page 1 of 4 BILL NUMBER: SB 6 INTRODUCED BILL TEXT INTRODUCED BY Senator Ducheny DECEMBER 6, 2004 An act to amend Section 7073 of the Government Code, relating to enterprise zones, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 6, as introduced, Ducheny. Enterprise zones: designation period. The Enterprise Zone Act generally provides for the designation by the Department of Housing and Community Development of enterprise zones in the state, pursuant to which certain entities within the enterprise zone may receive regulatory, tax, and other incentives for private investment and employment. A designation is binding for a period of 15 years from the date of the original designation, except that the designation period for an enterprise zone designated pursuant to specified provisions of law prior to 1990 may total 20 years, subject to specified conditions. This bill instead would specify that the designation period of any zone may total 20 years, subject to these conditions. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:` SECTION 1. Section 7073 of the Government Code is amended to read: 7073. (a) Except as provided in subdivision (e), any 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.(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 effective, innovative, and comprehensive regulatory, tax, program, and other incentives in attracting private sector investment in the zone proposed. (2) For purposes of this subdivision, regulatory incentives 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; http://info.sen.ca.gov/pub/bill/sen/sb_0001-0050/sb_6 bill 20041206_introduced.html 12/9/2004 SB 6 Senate Bill - INTRODUCED Page 3 of 4 (d) (1) Except as provided in paragraph (2), or upon dedesignation pursuant to subdivision (c) of Section 7076.1 or Section 7076.2, a designation made by the department shall be binding for a period of 15 years from the date of the original designation. (2) The designation period for any zone designated pursuant to either S cti n '10'73 this section or fo r mer Section 7085 , as it read prior to 1990 January 1, 1997, may total 20 years, subject to possible dedesignation pursuant to subdivision (c) of Section 7076.1 or Section 7076.2, if the following requirements are met: (A) The zone receives a superior or passing audit pursuant to subdivision (c) of Section 7076.1. (B) The local jurisdictions comprising the zone submit an updated economic development plan to the department justifying the need for an additional five years by defining goals and ohjart.tvss that still. need to be achieved and indicating what actions are to be taken to achieve these goals and objectives. (e) (1) Notwithstanding any other provision of law, any 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 economic development area, or program area pursuant to Chapter 12.9 (commencing with Section 7080) as it read prior to January 1, 1997, or any program area or part of a program area deemed designated as an enterprise zone pursuant to Section 7085.5 as it read prior to January 1, 1997, shall be deemed to be designated as an enterprise zone pursuant to this chapter. The effective date of designation of the enterprise zone shall be that of the original designation of the enterprisezone pursuant to Chapter 12.8 (commencing with Section 7070) asit read prior to January 1, 1997, or of the program area pursuant to Chapter 12.9 (commencing with Section 7080) as it read prior to January 1, 1997, and in no event may the total designation period exceed 15 years, except as provided in paragraph (2) of subdivision (d). (2) Notwithstanding any other provision of law, any enterprise zone authorized, but not designated, pursuant to Chapter 12.8 (commencing with Section 7070) as it read prior to January 1, 1997, shall be allowed to complete the application process started pursuant to that chapter, and to receive final designation as an enterprise zone pursuant to this chapter. (3) Notwithstanding any other provision of law, any expansion of a designated enterprise zone or program area authorized pursuant to Chapter 12.8 (commencing with Section 7070) as it read prior to January 1, 1997, or Chapter 12.9 (commencing with Section 7080) as it read prior to January 1, 1997, shall be deemed to be authorized as an expansion for a designated enterprise zone pursuant to this chapter. (4) No part of this chapter may be construed to require a new application for designation by an enterprise zone designated pursuant to Chapter 12.8 (commencing with Section 7070) as it read prior to January 1, 1997, or a targeted economic development area, neighborhood economic development area, or program area designated pursuant to Chapter 12.9 (commencing with Section 7080) as it read prior to January 1, 1997. (f) Notwithstanding any other provision of law, a city, county, or a city and county may designate a joint powers authority to administer the enterprise zone. (g) No more than 42 enterprise zones may be designated at any one time pursuant to this chapter, including those deemed designated http://info.sen.ca.gov/pub/bill/sen/sb 0001-0050/sb_6_bill_20041206_introduced.html 12/9/2004