Bill Text: CA AB2428 | 2009-2010 | Regular Session | Amended
Bill Title: Economic development: Green Technology Zone Pilot
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-10 - In committee: Hearing postponed by committee. [AB2428 Detail]
Download: California-2009-AB2428-Amended.html
BILL NUMBER: AB 2428 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Buchanan
FEBRUARY 19, 2010
An act relating to enterprise zones
economic development .
LEGISLATIVE COUNSEL'S DIGEST
AB 2428, as amended, Buchanan. Enterprise zones.
Economic development: Green Technology Zone Pilot
Program.
The Enterprise Zone Act provides for the Department of
Housing and Community Development's designation and oversight
by the Department of Housing and Community Development
of various economic development areas in the state,
including, but not limited to, enterprise zones , pursuant
to which qualifying entities in those areas may receive various tax
and regulatory incentives.
This bill would establish the Green Technology Zone Pilot Program
and authorize the City of Elk Grove and the City of Livermore,
respectively, to participate in the program. The bill would authorize
those governing bodies to designate, by resolution or ordinance, a
green technology zone, as defined, within each one's respective
jurisdiction. The bill would authorize those governing bodies to, by
resolution or ordinance, adopt or suspend specified local laws to
encourage economic development. The bill would prohibit a resolution
or ordinance adopted for this purpose from preempting state law, and
would require the resolution or ordinance to be subordinate to state
law.
The bill would also establish various incentives for economic
development within a designated green technology zone, including,
among others, a tax credit for the purchase of qualified property, as
defined, a tax credit for the employment of a qualified employee, as
defined, a 5% preference in specified solicitations for bids on
contracts for goods by California-based companies located within a
green technology zone, and the authority for state and local agencies
to lease land to a business in a green technology zone at a price
below fair market value, if that lease serves a public purpose.
The bill would require an individual or business that takes
advantage of these incentives to enter into agreements with state,
local, regional, or county programs, or a qualified nonprofit
organization, that provides education, job training, or career
opportunities for individuals under 22 years of age, relating to
clean technology, renewable energy, or energy efficiency.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the Cities of Elk Grove and
Livermore.
This bill would state the intent of the Legislature to enact
legislation to expand the definition of enterprise zone to include
green technology zones.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be
cited as the Green Technology Zone Pilot Program Act.
SEC. 2. (a) The Legislature finds and declares all
of the following:
(1) For decades, California has been a national leader in
environmental protection. The state was the first to adopt air
quality standards for vehicle emissions, and to establish statewide
goals for reduction of solid waste through source reduction and
recycling. More recently, the state enacted legislation to reduce its
greenhouse gas emissions to 1990 levels by no later than 2020.
(2) The state also provides incentives to employers to provide
jobs in areas of limited opportunity or in industries with tremendous
growth potential. It is the purpose of this act to create new
permanent jobs in California.
(b) It is the intent of the Legislature that the Green Technology
Zone Pilot Program concurrently facilitate the policy objectives of
job creation, economic development, and environmental protection.
(c) The Green Technology Zone Pilot Program shall be a 10-year
program to promote energy efficiency, clean technology, and the
creation of high quality jobs within geographical zones established
pursuant to the program. The results of the pilot program shall aid
in determining whether this type of program can effectively promote
these state interests. The program shall also encourage individuals
and businesses that take advantage of program incentives to partner
with local K-12 schools and community colleges to provide job skills
and training necessary for a career in green technology and to
contribute to the state's goals for greenhouse gas emissions
reduction.
SEC. 3. For the purposes of this act, the
following definitions shall apply:
(a) "Eligible area" means a geographic area that is authorized to
participate in the Green Technology Zone Pilot Program in which 20
percent of the businesses located therein can verify that they are
currently meeting any of the following standards:
(1) Researching and developing technology that promotes energy
efficiency.
(2) Manufactures technology that reduces greenhouse gas, pollution
in air or water, or energy consumption.
(3) Manufactures renewable energy. "Renewable energy" for purposes
of this paragraph means a device or technology that conserves or
produces heat, processes heat, space heating, water heating, steam,
space cooling, refrigeration, mechanical energy, electricity, or
energy in any form convertible to these uses, that does not expend or
use conventional energy fuels, and that uses any of the following
electrical generation technologies:
(A) Biomass.
(B) Solar thermal.
(C) Photovoltaic.
(D) Wind.
(E) Geothermal
(b) "Green technology zone" means not more than one geographical
area within a city, that is smaller than the geographical boundaries
of the city, that could encompass one or more eligible areas that are
authorized to participate in the Green Technology Zone Pilot
Program, and that has been designated as a green technology zone by
the governing body of that city.
(c) "Governing body" means the city council or the county board of
supervisors, as appropriate, of a city, county, or city and county
that is authorized to participate in the program.
(d) "Qualified employee" means an individual who meets all of the
following standards:
(1) At least 90 percent of his or her services for the qualified
taxpayer during the taxable year were directly related to the conduct
of the qualified taxpayer's trade or business located within a green
technology zone.
(2) Performed at least 50 percent of his or her services for the
qualified taxpayer during the taxable year within a green technology
zone.
(3) Was hired by the qualified taxpayer after the date of original
designation of the green technology zone where at least 50 percent
of his or her services were performed for the qualified taxpayer
during the taxable year.
(e) "Qualified property" means any of the following if used
exclusively within a green technology zone:
(1) Machinery and machinery parts used for fabricating,
processing, assembling, manufacturing, or production of renewable
resources.
(2) Machinery and machinery parts used for either of the
following:
(A) Air pollution control mechanisms.
(B) Water pollution control mechanisms.
(3) Data processing and communications equipment, including, but
not limited to, computers, computer-automated drafting systems, copy
machines, telephone systems, and faxes.
(4) Motion picture manufacturing equipment central to production
and postproduction, including, but not limited to, cameras, audio
recorders, and digital image and sound processing equipment.
(f) "Qualified wages" means the portion of wages paid to a
qualified employee by the taxpayer during the taxable year that does
not exceed 150 percent of the minimum wage.
SEC. 4. (a) The Green Technology Zone Pilot
Program shall be operative as of the effective date of this act for a
period of 10 years. The City of Elk Grove and the City of Livermore
exclusively may participate in the Green Technology Zone Pilot
Program.
(b) The City Council of the City of Elk Grove or the City of
Livermore, respectively, may, by resolution or ordinance, designate a
green technology zone in any eligible area, as defined in Section 3
of this act, within its jurisdiction.
(c) (1) The resolution or ordinance may do any of the following:
(A) Suspend or relax locally originated or modified building
codes, zoning laws, general development plans, or rent controls.
(B) Eliminate or reduce fees for applications, permits, and local
government services.
(C) Establish a streamlined permit process.
(D) Create additional incentives as permitted by law.
(2) A resolution or ordinance adopted pursuant to paragraph (1)
may be harmonized with, but shall not preempt, state law, and in any
conflict between the resolution or ordinance and state law, the
resolution or ordinance shall be subordinate to state law.
SEC. 5. There shall be allowed a credit against
the "net tax" (as defined in Section 17039 of the Revenue and
Taxation Code) for the taxable year an amount equal to the sales or
use tax paid or incurred during the taxable year by the taxpayer in
connection with the taxpayer's purchase of qualified property, as
defined in Section 3 of this act. A taxpayer who elects to be subject
to this section shall not be entitled to increase the basis of the
qualified property as otherwise required by Section 164(a) of the
Internal Revenue Code with respect to sales or use tax paid or
incurred in connection with the taxpayer's purchase of qualified
property. The amount of the credit otherwise allowed under this act
and Section 17053.74 of the Revenue and Taxation Code, including any
credit carryover from prior years, that may reduce the "net tax" for
the taxable year shall not exceed the amount of tax that would be
imposed on the taxpayer's business income attributable to the green
technology zone as if that attributable income represented all of the
income of the taxpayer subject to tax under Part 10 (commencing with
Section 17001) of Division 2 of the Revenue and Taxation Code.
SEC. 6. There shall be allowed a credit against
the "net tax" (as defined in Section 17039 of the Revenue and
Taxation Code) to a taxpayer who employs a qualified employee in a
green technology zone during the taxable year. The credit shall be
equal to the sum of each of the following:
(1) Fifty percent of qualified wages in the first year of
employment.
(2) Forty percent of qualified wages in the second year of
employment.
(3) Thirty percent of qualified wages in the third year of
employment.
(4) Twenty percent of qualified wages in the fourth year of
employment.
(5) Ten percent of qualified wages in the fifth year of
employment.
SEC. 7. Whenever the state prepares a solicitation
for a contract for goods in excess of one hundred thousand dollars
($100,000), except a contract in which the worksite is fixed by the
provisions of the contract, the state shall award a 5-percent
preference to California-based companies located within a green
technology zone.
SEC. 8. Notwithstanding any contrary law, state
and local agencies may lease land to businesses in a designated green
technology zone at a price below fair market value, provided that it
serves a public purpose to lease at below fair market value.
SEC. 9. The limitations in Section 91503 of the
Government Code on the allowable uses of proceeds of bonds issued
pursuant to Title 10 (commencing with Section 91500) of the
Government Code shall not apply to bonds issued on behalf of a green
technology zone or any portion of that zone.
SEC. 10. Notwithstanding any contrary law, the
California Office of Small Business shall establish regulations for
loans and loan guarantees administered by the office that give high
priority to businesses in a designated green technology zone.
SEC. 11. Notwithstanding Sections 32646 and 32647
of the Financial Code, a high priority in ranking loan applications
by the State Assistance Fund for Energy, California Business and
Development Corporation, shall be given to businesses in a designated
green technology zone that are purchasing or providing alternative
energy systems.
SEC. 12. An individual or a business that takes
advantage of incentives provided pursuant to this act shall enter
into agreements, including, but not limited to, partnerships,
contracts, memoranda of understanding, or other mutually agreed upon
arrangements with a state, local, regional, or county program, or a
qualified nonprofit organization that provides education, job
training, or career opportunities for minors or adults under 22 years
of age and fosters the knowledge, skills, and credentials necessary
for their successful employment in careers directly related to clean
technology, renewable energy, or energy efficiency that may also
contribute to the state's goals for greenhouse gas emissions
reduction.
SEC. 13. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique opportunities for
synergy in promoting economic development and environmental
protection in the Cities of Elk Grove and Livermore.
SECTION 1. It is the intent of the Legislature
to enact legislation to expand the definition of enterprise zone to
include green technology zones.
