Bill Text: CA AB1248 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Institutional purchasers: purchase of California-grown agricultural products.

Spectrum: Moderate Partisan Bill (Democrat 9-1-1)

Status: (Engrossed - Dead) 2020-07-02 - Re-referred to Com. on G.O. [AB1248 Detail]

Download: California-2019-AB1248-Amended.html

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Amended  IN  Assembly  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1248

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Introduced by Assembly Member Eduardo Garcia

February 21, 2019

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An act to amend Section 9546 of the Welfare and Institutions Code, relating to public social services. add Chapter 9 (commencing with Section 51299) to Part 1 of Division 1 of Title 5 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL'S DIGEST

AB 1248, as amended, Eduardo Garcia. Mello-Granlund Older Californians Act. Targeted Revitalization Incentive Program: local governments: property tax abatement.

Existing law, until January 1, 2024, authorizes the governing body of a county, city and county, or city to establish a capital investment incentive program, pursuant to which the county, city and county, or city is authorized to pay, upon request, a capital investment incentive amount that does not exceed the amount of ad valorem property tax revenues derived from that portion of the assessed value of a qualified manufacturing facility, as defined, that exceeds $150,000,000 to a proponent of a qualified manufacturing facility for up to 15 years.

This bill would, commencing with the 2020–21 fiscal year, until January 1, 2035, authorize the governing body of a city or county to establish a targeted revitalization incentive program, pursuant to which the city or county is authorized to pay a proponent of a qualified manufacturing facility a targeted revitalization incentive amount, for up to 10 consecutive years, that does not exceed the amount of ad valorem property tax revenues derived from that portion of the assessed value of a qualified manufacturing facility located within the jurisdiction of that city or county, commencing with the first fiscal year after the date upon which the qualified manufacturing facility is certified for occupancy or commences operation, as specified. The bill would require that annual payment of the targeted revitalization incentive amount to be contingent on the proponent’s compliance with a community services agreement, which this bill would require the city or the county to enter into with the proponent, and the payment of a specified community services fee required to be paid by the proponent to the city or county. The bill would prohibit abatement under a capital investment incentive program for ad valorem property tax amounts taken into account in calculating the payment authorized by a targeted revitalization incentive program.

The bill would require a city or county that establishes a targeted revitalization incentive program to provide the Governor’s Office of Business and Economic Development with specified information. The bill would require the Governor’s Office of Business and Economic Development to compile the information submitted by each city and county and submit a report to the Legislature containing this information on or before October 1, 2025, and no later than October 1 every 2 years thereafter.

Existing law requires the California Department of Aging to administer the Mello-Granlund Older Californians Act, which establishes and provides funding for various programs that serve older individuals. Among the programs provided for under that act is the Respite Program, which, among other things, provides temporary or periodic services for frail elderly or functionally impaired adults to relieve care providers. Existing law requires direct service contractors participating in the program to carry out one or more of the following functions: (1)in acting as a respite care information and referral agency, recruit and screen respite providers and match respite providers to clients, (2)arrange for and purchase respite services for program participants, and (3)maintain a systematic means of capturing and reporting all required community-based services program data.

This bill would instead require direct service contractors to carry out 2 or more of the above-described functions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Chapter 9 (commencing with Section 51299) is added to Part 1 of Division 1 of Title 5 of the Government Code, to read:

CHAPTER  9. Targeted Revitalization Incentive Program

51299.

 (a) This chapter shall be known and may be cited as the Targeted Revitalization Incentive Program.

(b) It is the intent of the Legislature in enacting this chapter do both of the following:

(1) Authorize cities and counties to implement and administer a property tax abatement program that spurs economic development.

(2) Provide local governments with tools to revitalize their communities by attracting and supporting industrial investment that creates jobs, increases the tax base, and encourages the rehabilitation of underutilized sites.

51299.1.

 (a) (1) Commencing in the 2020–21 fiscal year, the governing body of a city or county may, by majority vote of that governing body, establish a targeted revitalization incentive program consistent with this chapter.

(2) A city or county that has established a targeted revitalization incentive program may, for up to 10 consecutive years, approve the payment of a targeted revitalization incentive amount to the proponent of a qualified manufacturing facility upon making the following findings:

(A) The qualified manufacturing facility is located within the jurisdiction of the city or county.

(B) The proponent of the qualified manufacturing facility enters into a community services agreement with the city or county.

(C) The city or county has considered the comments, if any, from stakeholders on the economic impact of the qualified manufacturing facility on the residents and businesses of the community where the qualified manufacturing facility will be located.

(3) The consecutive fiscal years during which a targeted revitalization incentive amount is to be paid shall commence with the first fiscal year after the date upon which the qualified manufacturing facility is certified for occupancy or the first fiscal year commencing after the date the qualified manufacturing facility commences operation.

(4) The annual payment of the targeted revitalization incentive amount shall be contingent on the proponent’s compliance with a community services agreement and the payment of the community services fee required therein.

(5) (A) A city or county that establishes a targeted revitalization incentive program shall provide the Governor’s Office of Business and Economic Development with all of the following:

(i) Notice of the city or county’s election to establish the program no later than June 30 of the fiscal year in which the election was made.

(ii) The amount of any targeted revitalization incentive payments made and the proponent of the qualified manufacturing facility to whom the payments were made during that fiscal year.

(iii) Programs or projects established or funded in part by the community services agreement.

(iv) Economic activity generated, directly or indirectly, in the area in which the qualified manufacturing facility is located, including, but not limited to, changes in median income, the number of businesses, and the volume or value of exported goods.

(B) The Governor’s Office of Business and Economic Development shall compile the information submitted by each city and county and submit a report to the Legislature containing this information on or before October 1, 2025, and no later than October 1 every two years thereafter. The reports shall be submitted in compliance with Section 9795.

(b) For the purposes of this section:

(1) “Community services agreement” means an agreement by the proponent that includes, but is not limited to, all of the following provisions:

(A) A job creation plan that specifies the number and types of jobs to be created by the qualified manufacturing facility, the compensation ranges for each job type, and the coverage to be provided by an employer-sponsored health benefits plan.

(B) A requirement that a community services fee be remitted by the proponent to the city or county, in each fiscal year, in an amount up to or equal to 25 percent of the targeted revitalization incentive amount calculated for that proponent for that fiscal year.

(C) The dates in each relevant fiscal year upon which payment of the community services fee is due and delinquent, and the rate of interest to be charged to a proponent for any delinquent portion of the community services fee amount.

(D) The procedures and rules for the determination of underpayments or overpayments of a community services fee, for the appeal of determinations of any underpayment, and for the refunding or crediting of any overpayment.

(E) The procedures and rules for the determination of the proponent’s ineligibility to receive a targeted revitalization incentive amount if the proponent is delinquent in the payment of any portion of the community services fee, if the city or county finds the qualified manufacturing facility is materially different from the facility as described in building permit application materials, or if the facility is no longer operated as a qualified manufacturing facility.

(F) The procedures and rules for the determination of the proponent’s failure to operate the qualified manufacturing facility as required by the community services agreement and for the recapture of any portion of any targeted revitalization incentive amount previously paid to the proponent, less all of the community services fees received from the proponent and less any targeted revitalization incentive amounts previously recaptured.

(G) (i) The procedures and rules for the determination of whether good cause exists for the proponent’s failure to operate the qualified manufacturing facility as required by the community services agreement. For the purposes of this subdivision, good cause includes, but is not limited to:

(I) The sale or lease of the property to a person who has entered into an agreement with the city or county to assume all of the responsibilities of the proponent under the community services agreement.

(II) The qualified manufacturing facility has been rendered inoperable or beyond repair as a result of an act of God, civil disorder, failure of power, riots, insurrections, war, acts of terrorism, or any other causes, whether the kind herein enumerated or otherwise, not within the control of the qualified manufacturing facility claiming good cause, which restrict or interfere with a qualified manufacturing facility’s ability to perform in a timely manner, and which by the exercise of reasonable due diligence, such party is or would have been unable to prevent or overcome.

(ii) Upon a finding that good cause exists, the city or county shall waive any portion of the recaptured targeted revitalization incentive amount due under this subdivision.

(2) “Manufacturing facility” means a facility operated by a business entity with manufacturing as its principal business activity code, as reported on the entity’s tax return filed under Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code.

(3) “Proponent” means any party that is either the fee owner of the qualified manufacturing facility, the lessee of real property constructing the qualified manufacturing facility, or the applicant named on a permit to construct a qualified manufacturing facility located in the city or county.

(4) “Qualified manufacturing facility” means a proposed manufacturing facility where the proponent’s investment, in real or personal property, exceeds five million dollars ($5,000,000).

(5) “Targeted revitalization incentive amount” means an amount up to or equal to the amount of ad valorem property tax revenue, not to exceed a total of fifty million dollars ($50,000,000), allocated to a city or county that has established a targeted revitalization incentive program pursuant to this chapter, which excludes the revenue transfers required by Sections 97.2 and 97.3 of the Revenue and Taxation Code, from the taxation of that portion of the total assessed value of that real and personal property described in paragraph (4).

(c) No abatement shall be allowed pursuant to the authorization in Section 51298 for ad valorem property tax amounts taken into account in calculating the payment authorized by this section.

51299.2.

 (a) This chapter shall remain in effect until January 1, 2035.

(b) Notwithstanding subdivision (a), a targeted revitalization incentive program established pursuant to this chapter before January 1, 2035, may remain in effect for the full term of that program.

SECTION 1.Section 9546 of the Welfare and Institutions Code is amended to read:

9546.

(a)The purpose of the Respite Program shall be to provide temporary or periodic services for frail elderly or functionally impaired adults to relieve persons who are providing care, or recruitment and screening of providers and matching respite providers to clients.

(b)Direct services contractors shall do two or more of the following:

(1)In acting as a respite care information and referral agency, recruiting and screening respite providers and matching respite providers to clients. Respite care registries shall consist of the names, addresses, and telephone numbers of providers, including, but not limited to, individual caregivers, volunteers, adult daycare services, including adult day health care services and services provided by licensed residential care facilities for the elderly.

(2)Arranging for and purchasing respite services for program participants.

(3)Maintaining a systematic means of capturing and reporting all required community-based services program data.

(c)This section shall be implemented only to the extent that funds are appropriated for its purposes in the annual Budget Act or in another statute.