California Enterprise Zone – AB 1411
The Senate Appropriations Committee passed California Enterprise Zone bill AB 1411.
The two most notable provisions include the following:
· A $15 fee on vouchers to fund Housing and Community Development’s (HCD) administration
of the new requirements.
· Limiting the size of the proposed zones that are within the boundaries of one or more previously
designated zones to no more than 15% larger than the previous zone, except those in
rural areas may exceed the size of previous zones by 25%.
If enacted, AB 1411 would make to the following changes to the enterprise zone program
and other requirements for Geographically-Targeted Economic Development Areas (G-TEDAs) including:
· Revise the eligibility criteria for proposed zones to require the zone to be located solely
in low-income census tracts and meet specified criteria.
an applicant’s economic development strategy and implementation plan to identify specified
local resources that will be used to implement the plan and explain how these resources
will leverage available state resources.
· Require Housing and Community Development (HCD) to post specified information on administrative
memoranda, and enterprise zone and targeted employment area boundaries, on its
· Revise the information that G-TEDAs report biennially to HCD.
· Require HCD to review biennial progress reports to determine whether an audit is warranted
and require HCD to audit a G-TEDA that fails to submit timely reports.
· Require HCD to provide technical assistance and training during the audit process to help
G-TEDAs address identified deficiencies.
· Revise the criteria HCD uses to judge whether a G-TEDA audit determination is superior, passing,
· Require state entities to consider how G-TEDA programs could be integrated to maximize benefits
to workers and businesses when developing specified workforce development and training
plans and strategies.
· Require the Employment Development Department (EDD) provide letters to certify an unemployed
person’s eligibility for a hiring tax credit as a person participating in a federal
Workforce Development Act program.
· Require local education entities that administer student work permits to consider how hiring
credits could be used to benefit lower-income applicants for permits.
· Revise Franchise Tax Board’s (FTB) annual reporting requirement to include additional information
on G-TEDA tax credits and other incentives, to the extent available, and require FTB
to review both personal income tax and corporate tax returns when collecting information.
TALX is actively monitoring legislation and will continue to do our best to keep you updated
on the status of the California Enterprise Zone Program.
This weblog is sponsored by TALX.