CA AB1554

Repeals Section 7085 of the Government Code, which required the Department of Housing and Community Development to submit a report to the Legislature every five years evaluating the effects of enterprise zones on employment, investment, incomes, and tax revenues.

Amends Section 7085.1 to require the Department to submit a comprehensive report to the Legislature by December 31, 2010, and every six years thereafter, evaluating the impact of geographically targeted economic development areas (G-TEDAs) on employment, investment, incomes, and state and local tax revenues.

Removes the requirement that G-TEDA biennial reports be submitted to the legislative bodies of local jurisdictions comprising the G-TEDA, though local legislative bodies must still review G-TEDA progress toward goals and objectives biennially.

Modifies Section 7076.1 to establish audit procedures for G-TEDAs, with results determined as superior, pass, or fail based on whether jurisdictions meet 100 percent, 75 percent, or less than 75 percent of their stated goals, objectives, and commitments.

Allows G-TEDAs determined to be failing to enter into written agreements with the department to remedy deficiencies within six months, with dedesignation occurring if conditions are not met, though previously authorized tax incentives may continue for qualifying businesses.