Enterprise zones: expiration of designation.

The Enterprise Zone Act requires the Department of Housing and Community Development to administer the act and to designate no more than 42 enterprise zones at any one time that may be proposed by a city, county, or city and county from applications selected on the basis of the most effective, innovative, and comprehensive regulatory, tax program, and other incentives in attracting private sector investment in the zone proposed. The act specifies that any enterprise zone designated by the department on or after January 1, 1997, may not exceed a designation period of 15 years. Existing law also authorizes an expiring enterprise zone that applies for a new enterprise zone designation and receives a conditional designation letter from the department, to offer, and a taxpayer doing business within the geographic boundaries of the new zone referenced in the conditional designation letter is eligible to receive, all enterprise zone benefits until the department makes a final designation or declines to redesignate the zone, as specified. This bill would authorize an enterprise zone that expired in 2012 that sent a letter to the department in 2012 expressing the intent of the jurisdiction to reapply for a new enterprise zone designation before the expiration of the designation of the enterprise zone. The bill would provide that if that letter was sent and, if before the expiration of the designation of the enterprise zone, the department has not issued a request for proposal and has not conditionally designated the maximum number of enterprise zones within the state, the enterprise zone shall be deemed to be temporarily extended and businesses within the geographic boundaries of the previous enterprise zone may continue to be eligible to receive all enterprise zone benefits. The bill would provide that the temporary extension of an enterprise zone pursuant to this section shall continue until the earlier of December 31, 2014, or the date that the department issues conditional designation letters to the maximum number of enterprise zones within the state. The bill would also require the department to notify the Franchise Tax Board within 60 days of any extension of an enterprise zone designation pursuant to these provisions. The bill would also require the department to notify the Franchise Tax Board within 60 days of the expiration of any enterprise zone pursuant to these provisions. The bill would require an enterprise zone that was temporarily extended pursuant to the provisions of this act to meet certain requirements, including submitting a report to the department and not exceeding the size of the previous enterprise zone by more than 10%. The bill would require the Employment Development Department and the State Department of Education to take certain steps to assist individuals who reside in an enterprise zone temporarily extended pursuant to these provisions. The bill would repeal these provisions on January 1, 2015.