Bill Text: CA SB1486 | 2017-2018 | Regular Session | Amended

California Senate Bill 1486 (Prior Session Legislation)

Bill Title: Governor’s Office of Business and Economic Development: small business: income tax credit: outreach program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-05-25 - May 25 hearing: Held in committee and under submission. [SB1486 Detail]

Download: California-2017-SB1486-Amended.html

Amended IN Senate April 25, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 1486

Introduced by Senator Hernandez

February 16, 2018

An act to amend Section 18410.2 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

SB 1486, as amended, Hernandez. ~~California Competes Tax Credit Committee:~~ Governor’s Office of Business and Economic Development: small business: income tax credit: outreach program.

Existing law allows a credit against the taxes imposed under the Personal Income Tax Law and the Corporation Tax Law for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor’s Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law provides for the allocation of credit amounts only through the 2017–18 fiscal year and limits the aggregate amount of credit that may be allocated in a fiscal year. Existing law requires 25% of the aggregate amount of the credit to be reserved for small businesses, as defined.

This bill would require the ~~California Competes Tax Credit Committee~~ Governor’s Office of Business and Economic Development to conduct an outreach program for small businesses eligible for the above-described credits if, among other things, the Governor’s Office of Business and Economic Development is authorized to allocate those credits ~~for at least 2 consecutive fiscal years,~~ in the 2018–19 and 2019–20 fiscal years, a reservation for small businesses ~~of the aggregate amount of those credits that may be allocated~~ is in effect, and that reservation amount is not allocated by the Governor’s Office of Business and Economic Development during the ~~first~~ 2018–19 fiscal year.

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

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

SECTION 1.

Section 18410.2 of the Revenue and Taxation Code is amended to read:

18410.2.

(a) The California Competes Tax Credit Committee is hereby established. The committee shall consist of the Treasurer, the Director of Finance, and the Director of the Governor’s Office of Business and Economic Development, who shall serve as chair of the committee, or their designated representatives, and one appointee each by the Speaker of the Assembly and the Senate Committee on Rules. A Member of the Legislature shall not be appointed.

(b) For purposes of Sections 17059.2 and 23689, the California Competes Tax Credit Committee shall do all of the following:

(1) Approve or reject any written agreement for a tax credit allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the fully executed written agreement between the taxpayer and the Governor’s Office of Business and Economic Development.

(2) Approve or reject any recommendation to recapture, in whole or in part, a tax credit allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the recommendation from the Governor’s Office of Business and Economic Development pursuant to the terms of the fully executed written agreement.

(c) ~~The California Competes Tax Credit Committee~~ (1) The Governor’s Office of Business and Economic Development shall conduct an outreach program for small businesses eligible for a credit allocation pursuant to Section 17059.2 or 23689 if all of the following occur:

~~(1)~~

(A) The Governor’s Office of Business and Economic Development is authorized to allocate credits pursuant to Sections 17059.2 and 23689 ~~for at least two consecutive fiscal years beginning on or after the 2018–19 year~~ in the 2018–19 and 2019–20 fiscal years and a reservation for small businesses ~~of the aggregate amount of credit that may be allocated pursuant to those sections~~ is in effect.

(2)In the first fiscal year in which the Governor’s Office of Business and Economic Development is authorized to allocate tax credits pursuant to Sections 17059.2 and 23689, it does not allocate to small businesses the full amount of the reservation of credits for small businesses.
(3)On or before ____ months after the close of first fiscal year, the Governor’s Office of Business and Economic Development shall report to the Legislature the amount of unallocated credits reserved for small businesses. The report shall be submitted in compliance with Section 9795 of the Government Code. This paragraph shall become inoperative on January 1, 2023, pursuant to Section 102315 of the Government Code.
(B) In the 2018–19 fiscal year, the Governor’s Office of Business and Economic Development does not allocate to small businesses the full amount of the reservation of credits for small businesses.
~~(4)~~

(C) The Legislature, in the Budget Act or another bill, appropriates an amount ~~equal to the unallocated credit amount~~ from the General Fund to the ~~California Competes Tax Credit Committee~~ Governor’s Office of Business and Economic Development to conduct an outreach program for small businesses eligible for a credit allocation pursuant to Section 17059.2 or 23689.

(2) On or before ____ months after the close of first fiscal year, the Governor’s Office of Business and Economic Development shall report to the Legislature the amount of unallocated credits reserved for small businesses. The report shall be submitted in compliance with Section 9795 of the Government Code. This paragraph shall become inoperative on January 1, 2023, pursuant to Section 10231.5 of the Government Code.