Bill Text: CA AB1248 | 2019-2020 | Regular Session | Amended
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
|
Amended
IN
Assembly
April 29, 2019 |
|
Amended
IN
Assembly
March 28, 2019 |
| Assembly Bill | No. 1248 |
| Introduced by Assembly Member Eduardo Garcia |
February 21, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 51298 of the Government Code is amended to read:51298.
It is the intent of the Legislature in enacting this chapter to provide local governments with opportunities to attract large manufacturing facilities to invest in their communities and to encourage industries, such as high technology, aerospace, automotive, biotechnology, software, environmental sources, and others, to locate and invest in those facilities in California. It is further the intent of the Legislature in enacting this chapter to provide local governments with tools to spur economic development and revitalize their communities by attracting and supporting industrial investment that creates jobs, increases the tax base, and encourages the rehabilitation of underutilized sites.(2)
(3)
(4)
(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.
(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.
(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.
