AgdaPkt 2006-09-11 - Laserfiche WebLink

Browse Search

9A �NTERPRfSE Z�NE LEGISLAT[ON REVCVED - C1TIE5 ENCOURAGED TO REVIEW AB 1554 Page 5 The League is seeking inpuf fram cities on AB • Alfows HCD to backdate the effective date 1550 {Arambula), which contains various changes of the redesignated zones in order to cover and reforms #o the enterprise zone program. This the gap period betwe�n designations. bill is the latest inception af AB 485 (Arambufa), Those receiving tax breaks would continue which died in the Senate Appropriatians Committee receiving breaks during the "gap" in desig- last week. The bill is now on the Governor's desk. nation. The most recent version of AB 1550 would have `New' Zones Where HCD Issues Solicitation the following affects: After January 1, 2007 Existing Enterprise Zanes • Applicants for new zones would be altowed to include non-contiguous zones, as long as • Requires existing enterprise zones (EZs) the non-contiguous areas meet certain that expire after 2010 to update their memo- requirements and meet #he overall eco- randa of understanding (MOU) with the nomic strategy of the zone. state's Department of Mousing and Com- • New applicants would be subject to much munity Development (HCD) by April of2008. more stringent requirements in terms of The updated MOU woulct contain bench- determining a strategy for success of the marks, goals, objectives, and funding levels enterprise zone and then subsequently that are measurable and conducive to meeting the identified benchmarks in future implementations of the economic develop- years, ment strategy. No update of the MOU will • New zones will be selected by HCD that result in the zone's de-designation. propose the most "appropriate" economic • Allows businesses that have received tax development strategy and implementation benefits to continue obtaining tax benefits plan, through the originaf Iife of the zone in the event that the zone is de-designa#ed for AB 1550 also includes several new reporting failure to update the MOU by the deadline. requirements for enterprise zones and for HCD. • Requires zones #o report every two years EZs would be responsible fo�reporting to HCD to HCD on the activities of the area, every two years on the activities of the area, and progress in meeting gaals, benchmarks progress of ineeting goals and benchmarks. HCD �nd objectives and �revious and pending would be required a� is currsnt Iaw, to audit each year funding Ievels. zone at {east once every five years, and would also • Allows EZs and Targeted Tax Areas (TTAs) be required to report to the Legislature every other to include noncontiguous areas within their year about the progress of the zones. allowable expansion areas if the area meefs certain criteria and fits with the zone's The League asks cities with enterprise zones to overall economic strategy. examine AB 1550 careful{y to determine the impact this legislation may have, if the bill is signed by the Zones Currently Applying for Renewal Governor. The most current text of this bill can be found at www.leginfo.ca,aov. Comments or ques- • Allow eligible taxpayers to continue receiv- tions on the bill may be sent to League Legislative ing any EZ benefits in the "gap" period Representative Dan Carrigg at when an expiring EZ has applied for dcarrigg@cacities.org and Legislative Analyst redesigrtation and has received a condi- Debbie Michel at dmichel@cacities.org. tional designation letter from HCD. • If applying for redesignation and after receiving a conditional designatian letter from HCD, applicants could include non- contiguous areas in zones. Visit the League's Official Website--www.cacities.org PRIORITY FOCUS - PAGE 5 September 1, 2006- Issue #35