SB 507: Tijuana River Valley.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-10-06
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, improvement, rehabilitation, protection, and restoration of natural and park lands in the Tijuana River Valley, for specified studies of the land, as provided, and for the development of a campground, as provided. By changing the purposes of an existing appropriation, this bill would create an appropriation.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, improvement, rehabilitation, protection, and restoration of natural and park lands in the Tijuana River Valley, for specified studies of the land, as provided, and for the development of a campground, as provided. By changing the purposes of an existing appropriation, this bill would create an appropriation.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, improvement, rehabilitation, protection, and restoration, including studies, as provided, restoration of natural and park lands in the Tijuana River Valley. Valley, for specified studies of the land, as provided, and for the development of a campground, as provided. By changing the purposes of an existing appropriation, this bill would create an appropriation.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
The Budget Act of 2014 appropriated specified amounts for the support of state government for the 201415 fiscal year.This bill would amend the Budget Act of 2014 by amending an item of appropriation.This bill would declare that it is to take effect immediately as an urgency statute.
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, improvement, rehabilitation, protection, and restoration, including studies studies, as provided, of natural and park lands in the Tijuana River Valley.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
The Budget Act of 2014 appropriated specified amounts for the support of state government for the 201415 fiscal year.
This bill would amend the Budget Act of 2014 by amending an item of appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
The Budget Act of 2014 appropriated specified amounts for the support of state government for the 201415 fiscal year.
This bill would amend the Budget Act of 2014 by amending an item of appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Wildlife, Coastal, and Park Land Conservation Act, an initiative bond measure approved by the voters at the June 7, 1988, statewide primary election, provided bond funds for wildlife, coastal, and parkland conservation. The act establishes the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 and requires money in the fund to be available for specified purposes, including for a grant to the County of San Diego to acquire natural lands in the Tijuana River Valley. The act may be amended by a 2/3 vote of the Legislature if the amendment is consistent with the purposes of the act.
This bill would instead authorize the money granted to the County of San Diego to be available for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
The bill would declare that this provision is an amendment to the act and is consistent with the act.
The Budget Act of 2014 appropriated specified amounts for the support of state government for the 201415 fiscal year.
This bill would amend the Budget Act of 2014 by amending an item of appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2021, a credit for hiring qualified full-time employees within specified economic development areas in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year. For the purposes of that credit, the applicable percentage is calculated, in part, by comparing the total number of full-time employees employed in this state during the taxable year to the total number of full-time employees employed in this state during the base year, as defined, and qualified wages are limited to wages that exceed 150% of minimum wage, or $10 per hour, as applicable, but do not exceed 350% of minimum wage. Existing law also allows a credit against tax under both laws 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 Governors 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 limits the aggregate amount, through the 201718 fiscal year, of credits allocated to taxpayers to a specified sum per fiscal year and provides that the amount available for these credits will decrease based in part, on how much credit is allowed under the hiring credit. This bill would include as a qualified full-time employee an ex-offender, hired on or after January 1, 2018, previously convicted of a felony who is between 18 to 25 years of age, inclusive, and who demonstrates completion of a work readiness program and an ex-foster youth, hired on or after January 1, 2018, who, among other things, demonstrates completion of a work readiness program. The bill would provide that these types of qualified full-time employees are not included in determining the applicable percentage, allows these types of qualified full-time employees to perform work within any area of the state, and provides that the credit allowed to a taxpayer based on the employment of these types of qualified full-time employees shall not affect the calculation with regard to the aggregate amount of credits allowed pursuant to a written agreement from the Governors Office of Business and Economic Development, described above.This bill would take effect immediately as a tax levy.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2021, a credit for hiring qualified full-time employees within specified economic development areas in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year. For the purposes of that credit, the applicable percentage is calculated, in part, by comparing the total number of full-time employees employed in this state during the taxable year to the total number of full-time employees employed in this state during the base year, as defined, and qualified wages are limited to wages that exceed 150% of minimum wage, or $10 per hour, as applicable, but do not exceed 350% of minimum wage.
Existing law also allows a credit against tax under both laws 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 Governors 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 limits the aggregate amount, through the 201718 fiscal year, of credits allocated to taxpayers to a specified sum per fiscal year and provides that the amount available for these credits will decrease based in part, on how much credit is allowed under the hiring credit.
This bill would include as a qualified full-time employee an ex-offender, hired on or after January 1, 2018, previously convicted of a felony who is between 18 to 25 years of age, inclusive, and who demonstrates completion of a work readiness program and an ex-foster youth, hired on or after January 1, 2018, who, among other things, demonstrates completion of a work readiness program. The bill would provide that these types of qualified full-time employees are not included in determining the applicable percentage, allows these types of qualified full-time employees to perform work within any area of the state, and provides that the credit allowed to a taxpayer based on the employment of these types of qualified full-time employees shall not affect the calculation with regard to the aggregate amount of credits allowed pursuant to a written agreement from the Governors Office of Business and Economic Development, described above.
This bill would take effect immediately as a tax levy.
(a)Pursuant to Section 5922, for the purpose of expending funds appropriated to the department in Item 3790-101-0786 of the Budget Act of 2014, and reappropriated in Item 3790-490 of the Budget Act of 2017, funds shall be available to the County of San Diego for the development, improvement, rehabilitation, protection, and restoration of natural and park lands in the Tijuana River Valley, for the studies described in subdivision (b), and for the development of a campground planned for the Tijuana River Valley, as described in the Tijuana River Valley Regional Park Public Use Feasibility Study.
(b)Up to five hundred thousand dollars ($500,000) of the moneys appropriated to the department and available to the County of San Diego, described in subdivision (a), shall be used to update or conduct, as the case may be, the following studies:
(1)An update to the Tijuana River Valley Recovery Teams Recovery Strategy: Living with the Water, January 2012 to include issues related to wastewater and runoff.
(2)A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
SEC. 2.Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)Item 3790-101-0786 of the Budget Act of 2014, as reappropriated in Item 3790-490 of the Budget Act of 2017, appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for the purpose of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2018. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
(a)Pursuant to Section 5922, for the purpose of expending funds appropriated to the department in Item 3790-101-0786 of the Budget Act of 2014, and reappropriated in Item 3790-490 of the Budget Act of 2017, funds shall be available to the County of San Diego for the development, improvement, rehabilitation, protection, and restoration of natural and park lands in the Tijuana River Valley, for the studies described in subdivision (b), and for the development of a campground planned for the Tijuana River Valley, as described in the Tijuana River Valley Regional Park Public Use Feasibility Study.
(b)Up to five hundred thousand dollars ($500,000) of the moneys appropriated to the department and available to the County of San Diego, described in subdivision (a), shall be used to update or conduct, as the case may be, the following studies:
(1)An update to the Tijuana River Valley Recovery Teams Recovery Strategy: Living with the Water, January 2012 to include issues related to wastewater and runoff.
(2)A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
SEC. 2.Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)Item 3790-101-0786 of the Budget Act of 2014, as reappropriated in Item 3790-490 of the Budget Act of 2017, appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for the purpose of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2018. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
(a)Notwithstanding clause (ii) of subparagraph (A) of paragraph (3) of subdivision (b) of Section 5907, moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available Pursuant to Section 5922, for the purpose of expending funds appropriated to the department in Item 3790-101-0786 of the Budget Act of 2014, and reappropriated in Item 3790-490 of the Budget Act of 2017, funds shall be available to the County of San Diego for the development, improvement, rehabilitation, protection, and restoration, including the studies described in subdivision (b), restoration of natural and park lands in the Tijuana River Valley. Valley, for the studies described in subdivision (b), and for the development of a campground planned for the Tijuana River Valley, as described in the Tijuana River Valley Regional Park Public Use Feasibility Study.
(b)Up to five hundred thousand dollars ($500,000) of the moneys appropriated to the department and available to the County of San Diego, described in subdivision (a), shall be used to update or conduct, as the case may be, the following studies:
(1)An update to the Tijuana River Valley Recovery Teams Recovery Strategy: Living with the Water, January 2012 to include issues related to wastewater and runoff.
(2)A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
SEC. 2.Item 3790-101-0786 of Section 2.00 of the Budget Act of 2014 is amended to read:3790-101-0786For local assistance, Department of Parks and Recreation, payable from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988, to be available for expenditure until June 30, 20202,090,000Schedule:(1)80.25.101-San Diego County: Develop- ment, improvement, rehabilitation, protection, and restoration, including studies, as described in Section 5907.5 of the Public Resources Code, of Natural and Park Lands in the Tijuana River Valley2,090,000SEC. 3.SEC. 2.Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 4.SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)The Item 3790-101-0786 of the Budget Act of 2014 2014, as reappropriated in Item 3790-490 of the Budget Act of 2017, appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for the purpose of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2017. 2018. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
REVISIONS: HeadingLine 2.(a)Notwithstanding clause (ii) of subparagraph (A) of paragraph (3) of subdivision (b) of Section 5907, moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available for the development, improvement, rehabilitation, protection, and restoration, including studies, the studies described in subdivision (b), of natural and park lands in the Tijuana River Valley.
(b)Up to five hundred thousand dollars ($500,000) of the moneys appropriated to the County of San Diego, described in subdivision (a), shall be used to update or conduct, as the case may be, the following studies:
(1)An update to the Tijuana River Valley Recovery Teams Recovery Strategy: Living with the Water, January 2012 to include issues related to wastewater and runoff.
(2)A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
SEC. 2.Item 3790-101-0786 of Section 2.00 of the Budget Act of 2014 is amended to read:3790-101-0786For local assistance, Department of Parks and Recreation, payable from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988, to be available for expenditure until June 30, 2017 2020 | 2,090,000 | ||||||
Schedule: | |||||||
| (1) | 80.25.101-San Diego County: Develop- ment, improvement, rehabilitation, protection, and restoration, including studies, as described in Section 5907.5 of the Public Resources Code, of Natural and Park Lands in the Tijuana River Valley | 2,090,000 | |||||
Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)The Budget Act of 2014 appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for the purpose of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2017. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
Notwithstanding clause (ii) of subparagraph (A) of paragraph (3) of subdivision (b) of Section 5907, moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
SEC. 2.Item 3790-101-0786 of Section 2.00 of the Budget Act of 2014 is amended to read:3790-101-0786For local assistance, Department of Parks and Recreation, payable from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988, to be available for expenditure until June 30, 2017 | 2,090,000 | ||||||
Schedule: | |||||||
| (1) | 80.25.101-San Diego County: Development, rehabilitation, protection, and restoration, including studies, of Natural Lands in the Tijuana River Valley | 2,090,000 | |||||
Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)The Budget Act of 2014 appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for purposes the purpose of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2017. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
Notwithstanding clause (ii) of subparagraph (A) of paragraph (3) of subdivision (b) of Section 5907, moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
SEC. 2.Item 3790-101-0786 of Section 2.00 of the Budget Act of 2014 is amended to read:3790-101-0786For local assistance, Department of Parks and Recreation, payable from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988, to be available for expenditure until June 30, 2017 | 2,090,000 | ||||||
Schedule: | |||||||
| (1) | 80.25.101-San Diego County: Acquisition Development, rehabilitation, protection, and restoration, including studies, of Natural Lands in the Tijuana River Valley | 2,090,000 | |||||
Section 1 of this act, which adds Section 5907.5 to the Public Resources Code, is an amendment to the California Wildlife, Coastal, and Park Land Conservation Act (Division 5.8 (commencing with Section 5900) of the Public Resources Code) within the meaning of Section 6 of Proposition 70, adopted by the voters at the June 7, 1988, statewide primary election, and is consistent with the purposes of that act.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are both of the following:
(a)The Budget Act of 2014 appropriated money to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 for purposes of providing funds to the County of San Diego to acquire natural lands in the Tijuana River Valley; however, the funds were only made available for expenditure until June 30, 2017. Due to land constraints in the Tijuana River Valley, new land cannot be acquired with these funds.
(b)In addition, due to the sewage spill into the Tijuana River in February 2017, it is critical to focus on the funding issue now to make improvements to the Tijuana River Valley.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 16, 2017. (JR11)(a)(1)For each taxable year beginning on or after January 1, 2014, and before January 1, 2021, there shall be allowed to a qualified taxpayer that hires a qualified full-time employee and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee, a credit against the net tax, as defined in Section 17039, in an amount calculated under this section.
(2)The amount of the credit allowable under this section for a taxable year shall be equal to the product of the tentative credit amount for the taxable year and the applicable percentage for that taxable year.
(3)(A)If a qualified taxpayer relocates to a designated census tract or economic development area, the qualified taxpayer shall be allowed a credit with respect to qualified wages for each qualified full-time employee employed within the new location only if the qualified taxpayer provides each employee at the previous location or locations a written offer of employment at the new location in the designated census tract or economic development area with comparable compensation.
(B)For purposes of this paragraph, relocates to a designated census tract or economic development area means an increase in the number of qualified full-time employees, employed by a qualified taxpayer, within a designated census tract or tracts or economic development areas within a 12-month period in which there is a decrease in the number of full-time employees, employed by the qualified taxpayer in this state, but outside of designated census tracts or economic development areas.
(C)This paragraph does not apply to a small business.
(4)The credit allowed by this section may be claimed only on a timely filed original return of the qualified taxpayer and only with respect to a qualified full-time employee for whom the qualified taxpayer has received a tentative credit reservation.
(b)For purposes of this section:
(1)The tentative credit amount for a taxable year shall be equal to the product of the applicable credit percentage for each qualified full-time employee and the qualified wages paid by the qualified taxpayer during the taxable year to that qualified full-time employee.
(2)The applicable percentage for a taxable year shall be equal to a fraction, the numerator of which is the net increase in the total number of full-time employees employed in this state during the taxable year, determined on an annual full-time equivalent basis, as compared with the total number of full-time employees employed in this state during the base year, determined on the same basis, and the denominator of which shall be the total number of qualified full-time employees employed in this state during the taxable year. The applicable percentage shall not exceed 100 percent.
(3)The applicable credit percentage means the credit percentage for the calendar year during which a qualified full-time employee was first employed by the qualified taxpayer. The applicable credit percentage for all calendar years shall be 35 percent.
(4)Base year means the 2013 taxable year, except in the case of a qualified taxpayer who first hires a qualified full-time employee in a taxable year beginning on or after January 1, 2015, the base year means the taxable year immediately preceding the taxable year in which a qualified full-time employee was first hired by the qualified taxpayer.
(5)Acquired includes any gift, inheritance, transfer incident to divorce, or any other transfer, whether or not for consideration.
(6)Annual full-time equivalent means either of the following:
(A)In the case of a full-time employee paid hourly qualified wages, annual full-time equivalent means the total number of hours worked for the qualified taxpayer by the employee, not to exceed 2,000 hours per employee, divided by 2,000.
(B)In the case of a salaried full-time employee, annual full-time equivalent means the total number of weeks worked for the qualified taxpayer by the employee divided by 52.
(7)Designated census tract means a census tract within the state that is determined by the Department of Finance to have a civilian unemployment rate that is within the top 25 percent of all census tracts within the state and has a poverty rate within the top 25 percent of all census tracts within the state, as prescribed in Section 13073.5 of the Government Code.
(8)Economic development area means either of the following:
(A)A former enterprise zone. For purposes of this section, former enterprise zone means an enterprise zone designated and in effect as of December 31, 2011, any enterprise zone designated during 2012, and any revision of an enterprise zone prior to June 30, 2013, under former Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1 of the Government Code, as in effect on December 31, 2012, excluding any census tract within an enterprise zone that is identified by the Department of Finance pursuant to Section 13073.5 of the Government Code as a census tract within the lowest quartile of census tracts with the lowest civilian unemployment and poverty.
(B)A local agency military base recovery area designated as of the effective date of the act adding this subparagraph, in accordance with Section 7114 of the Government Code.
(9)Minimum wage means the wage established pursuant to Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code.
(10)(A)Qualified full-time employee means an individual who meets all of the following requirements:
(i)Performs at least 50 percent of his or her services for the qualified taxpayer during the taxable year in a designated census tract or economic development area.
(ii)Receives starting wages that are at least 150 percent of the minimum wage.
(iii)Is hired by the qualified taxpayer on or after January 1, 2014.
(iv)Is hired by the qualified taxpayer after the date the Department of Finance determines that the census tract referred to in clause (i) is a designated census tract or that the census tracts within a former enterprise zone are not census tracts with the lowest civilian unemployment and poverty.
(v)Satisfies either of the following conditions:
(I)Is paid qualified wages by the qualified taxpayer for services not less than an average of 35 hours per week.
(II)Is a salaried employee and was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified taxpayer.
(vi)Upon commencement of employment with the qualified taxpayer, satisfies any of the following conditions:
(I)Was unemployed for the six months immediately preceding employment with the qualified taxpayer. In the case of an individual that completed a program of study at a college, university, or other postsecondary educational institution, received a baccalaureate, postgraduate, or professional degree, and was unemployed for the six months immediately preceding employment with the qualified taxpayer, that individual must have completed that program of study at least 12 months prior to the individuals commencement of employment with the qualified taxpayer.
(II)Is a veteran who separated from service in the Armed Forces of the United States within the 12 months preceding commencement of employment with the qualified taxpayer.
(III)Was a recipient of the credit allowed under Section 32 of the Internal Revenue Code, relating to earned income, as applicable for federal purposes, for the previous taxable year.
(IV)Is an ex-offender previously convicted of a felony.
(V)Is a recipient of either CalWORKs, in accordance with Article 2 (commencing with Section 11250) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, or general assistance, in accordance with Section 17000.5 of the Welfare and Institutions Code.
(VI)(ia)Is either of the following:
(Ia)An ex-offender, hired on or after January 1, 2018, previously convicted of a felony who is between 18 to 25 years of age, inclusive, and who demonstrates completion of a work readiness program.
(Ib)An ex-foster youth, hired on or after January 1, 2018, who is between 18 to 25 years of age, inclusive, who was a child who was the subject of a petition filed pursuant to Section 300 of the Welfare and Institutions Code, whether or not the child had been removed from his or her home by the juvenile court pursuant to Section 319 or 361 of the Welfare and Institutions Code or was a child who was the subject of a petition filed pursuant to Section 602 of the Welfare and Institutions Code and had been removed from his or her home by the juvenile court pursuant to Section 727 of the Welfare and Institutions Code, and who demonstrates completion of a work readiness program.
(ib)For purposes of this subclause:
(Ia)Job training provider means an entity that delivers a combined job readiness and life-skills training program that, at a minimum, includes high school or continuing education courses. The entitys program may also offer additional services like job placement, career and mental health counseling, prisoner reentry services, and relapse prevention and sober-living support.
(Ib)Work readiness program means a program offered by a job training provider that provides vocational job training, educational opportunities, and life skills. A work readiness program shall include paid or unpaid on-the-job training opportunities, preapprenticeship programs, vocational instruction, or internship placement, the opportunity for academic advancement, the opportunity to earn at least one industry recognized certification, and a life-skills training component.
(ic)The qualified full-time employee described in this subclause shall not be taken into account for purposes of calculating the applicable percentage, as described in paragraph (2) of subdivision (b).
(id)The credit allowed by this section shall be allowed for work a qualified employee described in this subclause performs anywhere in the state.
(ie)The credit amount allowed by this section for work performed by a qualified employee described in this subclause shall only be taken into account for the adjustment to the aggregate amount of credit that maybe allocated required by subdivision (g) of Sections 17059.2 and 23689 for the 201819 fiscal year and fiscal years thereafter.
(B)An individual may be considered a qualified full-time employee only for the period of time commencing with the date the individual is first employed by the qualified taxpayer and ending 60 months thereafter.
(11)(A)Qualified taxpayer means a person or entity engaged in a trade or business within a designated census tract or economic development area that, during the taxable year, pays or incurs qualified wages.
(B)In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section or Section 23626 shall be allowed to the pass-thru entity and passed through to the partners and shareholders in accordance with applicable provisions of this part or Part 11 (commencing with Section 23001). For purposes of this subdivision, the term pass-thru entity means any partnership or S corporation.
(C)Qualified taxpayers shall not include any of the following:
(i)Employers that provide temporary help services, as described in Code 561320 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(ii)Employers that provide retail trade services, as described in Sector 44-45 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(iii)Employers that are primarily engaged in providing food services, as described in Code 711110, 722511, 722513, 722514, or 722515 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(iv)Employers that are primarily engaged in services as described in Code 713210, 721120, or 722410 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(v)(I)An employer that is a sexually oriented business.
(II)For purposes of this clause:
(ia)Sexually oriented business means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance.
(ib)Nude means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts.
(D)Subparagraph (C) shall not apply to a taxpayer that is a small business.
(12)Qualified wages means those wages that meet all of the following requirements:
(A)(i)Except as provided in clause (ii), that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds 150 percent of minimum wage, but does not exceed 350 percent of minimum wage.
(ii)(I)In the case of a qualified full-time employee employed in a designated pilot area, that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds ten dollars ($10) per hour or an equivalent amount for salaried employees, but does not exceed 350 percent of minimum wage. For qualified full-time employees described in the preceding sentence, clause (ii) of subparagraph (A) of paragraph (10) is modified by substituting ten dollars ($10) per hour or an equivalent amount for salaried employees for 150 percent of the minimum wage.
(II)For purposes of this clause:
(ia)Designated pilot area means an area designated as a designated pilot area by the Governors Office of Business and Economic Development.
(ib)Areas that may be designated as a designated pilot area are limited to areas within a designated census tract or an economic development area with average wages less than the statewide average wages, based on information from the Labor Market Division of the Employment Development Department, and areas within a designated census tract or an economic development area based on high poverty or high unemployment.
(ic)The total number of designated pilot areas that may be designated is limited to five, one or more of which must be an area within five or fewer designated census tracts within a single county based on high poverty or high unemployment or an area within an economic development area based on high poverty or high unemployment.
(id)The designation of a designated pilot area shall be applicable for a period of four calendar years, commencing with the first calendar year for which the designation of a designated pilot area is effective. The applicable period of a designated pilot area may be extended, in the sole discretion of the Governors Office of Business and Economic Development, for an additional period of up to three calendar years. The applicable period, and any extended period, shall not extend beyond December 31, 2020.
(III)The designation of an area as a designated pilot area and the extension of the applicable period of a designated pilot area shall be at the sole discretion of the Governors Office of Business and Economic Development and shall not be subject to administrative appeal or judicial review.
(B)Wages paid or incurred during the 60-month period beginning with the first day the qualified full-time employee commences employment with the qualified taxpayer. In the case of any employee who is reemployed, including a regularly occurring seasonal increase, in the trade or business operations of the qualified taxpayer, this reemployment shall not be treated as constituting commencement of employment for purposes of this section.
(C)Except as provided in paragraph (3) of subdivision (n), qualified wages shall not include any wages paid or incurred by the qualified taxpayer on or after the date that the Department of Finances redesignation of designated census tracts is effective, as provided in paragraph (2) of subdivision (g), so that a census tract is no longer a designated census tract.
(13)Seasonal employment means employment by a qualified taxpayer that has regular and predictable substantial reductions in trade or business operations.
(14)(A)Small business means a trade or business that has aggregate gross receipts, less returns and allowances reportable to this state, of less than two million dollars ($2,000,000) during the previous taxable year.
(B)(i)For purposes of this paragraph, gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.
(ii)In the case of any trade or business activity conducted by a partnership or an S corporation, the limitations set forth in subparagraph (A) shall be applied to the partnership or S corporation and to each partner or shareholder.
(C)(i)Small business shall not include a sexually oriented business.
(ii)For purposes of this subparagraph:
(I)Sexually oriented business means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance.
(II)Nude means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts.
(15)An individual is unemployed for any period for which the individual is all of the following:
(A)Not in receipt of wages subject to withholding under Section 13020 of the Unemployment Insurance Code for that period.
(B)Not a self-employed individual (within the meaning of Section 401(c)(1)(B) of the Internal Revenue Code, relating to self-employed individual) for that period.
(C)Not a registered full-time student at a high school, college, university, or other postsecondary educational institution for that period.
(c)The net increase in full-time employees of a qualified taxpayer shall be determined as provided by this subdivision:
(1)(A)The net increase in full-time employees shall be determined on an annual full-time equivalent basis by subtracting from the amount determined in subparagraph (C) the amount determined in subparagraph (B).
(B)The total number of full-time employees employed in the base year by the taxpayer and by any trade or business acquired by the taxpayer during the current taxable year.
(C)The total number of full-time employees employed in the current taxable year by the taxpayer and by any trade or business acquired during the current taxable year.
(2)For taxpayers who first commence doing business in this state during the taxable year, the number of full-time employees for the base year shall be zero.
(d)For purposes of this section:
(1)All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single taxpayer.
(2)In determining whether the taxpayer has first commenced doing business in this state during the taxable year, the provisions of subdivision (f) of Section 17276, without application of paragraph (7) of that subdivision, shall apply.
(e)(1)To be eligible for the credit allowed by this section, a qualified taxpayer shall, upon hiring a qualified full-time employee, request a tentative credit reservation from the Franchise Tax Board within 30 days of complying with the Employment Development Departments new hire reporting requirements as provided in Section 1088.5 of the Unemployment Insurance Code, in the form and manner prescribed by the Franchise Tax Board.
(2)To obtain a tentative credit reservation with respect to a qualified full-time employee, the qualified taxpayer shall provide necessary information, as determined by the Franchise Tax Board, including the name, social security number, the start date of employment, the rate of pay of the qualified full-time employee, the qualified taxpayers gross receipts, less returns and allowances, for the previous taxable year, and whether the qualified full-time employee is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013.
(3)The qualified taxpayer shall provide the Franchise Tax Board an annual certification of employment with respect to each qualified full-time employee hired in a previous taxable year, on or before, the 15th day of the third month of the taxable year. The certification shall include necessary information, as determined by the Franchise Tax Board, including the name, social security number, start date of employment, and rate of pay for each qualified full-time employee employed by the qualified taxpayer.
(4)A tentative credit reservation provided to a taxpayer with respect to an employee of that taxpayer shall not constitute a determination by the Franchise Tax Board with respect to any of the requirements of this section regarding a taxpayers eligibility for the credit authorized by this section.
(f)The Franchise Tax Board shall do all of the following:
(1)Approve a tentative credit reservation with respect to a qualified full-time employee hired during a calendar year.
(2)Determine the aggregate tentative reservation amount and the aggregate small business tentative reservation amount for a calendar year.
(3)A tentative credit reservation request from a qualified taxpayer with respect to a qualified full-time employee who is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013, shall be expeditiously processed by the Franchise Tax Board. The residence of a qualified full-time employee in a targeted employment area shall have no other effect on the eligibility of an individual as a qualified full-time employee or the eligibility of a qualified taxpayer for the credit authorized by this section.
(4)Notwithstanding Section 19542, provide as a searchable database on its Internet Web site, for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, the employer names, amounts of tax credit claimed, and number of new jobs created for each taxable year pursuant to this section and Section 23626.
(g)(1)The Department of Finance shall, by January 1, 2014, and by January 1 of every fifth year thereafter, provide the Franchise Tax Board with a list of the designated census tracts and a list of census tracts with the lowest civilian unemployment rate.
(2)The redesignation of designated census tracts and lowest civilian unemployment census tracts by the Department of Finance as provided in Section 13073.5 of the Government Code shall be effective, for purposes of this credit, one year after the date the Department of Finance redesignates the designated census tracts.
(h)For purposes of this section:
(1)All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single taxpayer.
(2)All employees of trades or businesses that are not incorporated, and that are under common control, shall be treated as employed by a single taxpayer.
(3)The credit, if any, allowable by this section with respect to each trade or business shall be determined by reference to its proportionate share of the expense of the qualified wages giving rise to the credit, and shall be allocated to that trade or business in that manner.
(4)Principles that apply in the case of controlled groups of corporations, as specified in subdivision (h) of Section 23626, shall apply with respect to determining employment.
(5)If an employer acquires the major portion of a trade or business of another employer, hereinafter in this paragraph referred to as the predecessor, or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section, other than subdivision (i), for any taxable year ending after that acquisition, the employment relationship between a qualified full-time employee and an employer shall not be treated as terminated if the employee continues to be employed in that trade or business.
(i)(1)If the employment of any qualified full-time employee, with respect to whom qualified wages are taken into account under subdivision (a), is terminated by the qualified taxpayer at any time during the first 36 months after commencing employment with the qualified taxpayer, whether or not consecutive, the tax imposed by this part for the taxable year in which that employment is terminated shall be increased by an amount equal to the credit allowed under subdivision (a) for that taxable year and all prior taxable years attributable to qualified wages paid or incurred with respect to that employee.
(2)Paragraph (1) does not apply to any of the following:
(A)A termination of employment of a qualified full-time employee who voluntarily leaves the employment of the qualified taxpayer.
(B)A termination of employment of a qualified full-time employee who, before the close of the period referred to in paragraph (1), becomes disabled and unable to perform the services of that employment, unless that disability is removed before the close of that period and the qualified taxpayer fails to offer reemployment to that employee.
(C)A termination of employment of a qualified full-time employee, if it is determined that the termination was due to the misconduct, as defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California Code of Regulations, of that employee.
(D)A termination of employment of a qualified full-time employee due to a substantial reduction in the trade or business operations of the qualified taxpayer, including reductions due to seasonal employment.
(E)A termination of employment of a qualified full-time employee, if that employee is replaced by other qualified full-time employees so as to create a net increase in both the number of employees and the hours of employment.
(F)A termination of employment of a qualified full-time employee, when that employment is considered seasonal employment and the qualified employee is rehired on a seasonal basis.
(3)For purposes of paragraph (1), the employment relationship between the qualified taxpayer and a qualified full-time employee shall not be treated as terminated by reason of a mere change in the form of conducting the trade or business of the qualified taxpayer, if the qualified full-time employee continues to be employed in that trade or business and the qualified taxpayer retains a substantial interest in that trade or business.
(4)An increase in tax under paragraph (1) shall not be treated as tax imposed by this part for purposes of determining the amount of any credit allowable under this part.
(j)In the case of an estate or trust, both of the following apply:
(1)The qualified wages for a taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.
(2)A beneficiary to whom any qualified wages have been apportioned under paragraph (1) shall be treated, for purposes of this part, as the employer with respect to those wages.
(k)In the case in which the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and the succeeding four years if necessary, until the credit is exhausted.
(l)The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(m)(1)Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 201314 fiscal year to the 202021 fiscal year, inclusive.
(2)The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the departments estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts.
(n)(1)This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
(2)Notwithstanding paragraph (1) of subdivision (a), this section shall continue to be operative for taxable years beginning on or after January 1, 2021, but only with respect to qualified full-time employees who commenced employment with a qualified taxpayer in a designated census tract or economic development area in a taxable year beginning before January 1, 2021.
(3)This section shall remain operative for any qualified taxpayer with respect to any qualified full-time employee after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, for the remaining period, if any, of the 60-month period after the original date of hiring of an otherwise qualified full-time employee and any wages paid or incurred with respect to those qualified full-time employees after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, shall be treated as qualified wages under this section, provided the employee satisfies any other requirements of paragraphs (10) and (12) of subdivision (b), as if the designated census tract was still designated and binding or the economic development area was still in existence.
SEC. 2.Section 23626 of the Revenue and Taxation Code is amended to read:23626.(a)(1)For each taxable year beginning on or after January 1, 2014, and before January 1, 2021, there shall be allowed to a qualified taxpayer that hires a qualified full-time employee and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee, a credit against the tax, as defined by Section 23036, in an amount calculated under this section.
(2)The amount of the credit allowable under this section for a taxable year shall be equal to the product of the tentative credit amount for the taxable year and the applicable percentage for the taxable year.
(3)(A)If a qualified taxpayer relocates to a designated census tract or economic development area, the qualified taxpayer shall be allowed a credit with respect to qualified wages for each qualified full-time employee who is employed within the new location only if the qualified taxpayer provides each employee at the previous location or locations a written offer of employment at the new location in the designated census tract or economic development area with comparable compensation.
(B)For purposes of this paragraph, relocates to a designated census tract or economic development area means an increase in the number of qualified full-time employees, employed by a qualified taxpayer, within a designated census tract or tracts or economic development areas within a 12-month period in which there is a decrease in the number of full-time employees, employed by the qualified taxpayer in this state, but outside of designated census tracts or economic development areas.
(C)This paragraph does not apply to a small business.
(4)The credit allowed by this section may only be claimed on a timely filed original return of the qualified taxpayer and only with respect to a qualified full-time employee for whom the qualified taxpayer has received a tentative credit reservation.
(b)For purposes of this section:
(1)The tentative credit amount for a taxable year shall be equal to the product of the applicable credit percentage for each qualified full-time employee and the qualified wages paid by the qualified taxpayer during the taxable year to that qualified full-time employee.
(2)The applicable percentage for a taxable year shall be equal to a fraction, the numerator of which is the net increase in the total number of full-time employees employed in this state during the taxable year, determined on an annual full-time equivalent basis, as compared with the total number of full-time employees employed in this state during the base year, determined on the same basis, and the denominator of which shall be the total number of qualified full-time employees employed in this state during the taxable year. The applicable percentage shall not exceed 100 percent.
(3)The applicable credit percentage means the credit percentage for the calendar year during which a qualified full-time employee was first employed by the qualified taxpayer. The applicable credit percentage for all calendar years shall be 35 percent.
(4)Base year means the 2013 taxable year, or in the case of a qualified taxpayer who first hires a qualified full-time employee in a taxable year beginning on or after January 2015, the taxable year immediately preceding the taxable year in which the qualified full-time employee was hired.
(5)Acquired includes any gift, inheritance, transfer incident to divorce, or any other transfer, whether or not for consideration.
(6)Annual full-time equivalent means either of the following:
(A)In the case of a full-time employee paid hourly qualified wages, annual full-time equivalent means the total number of hours worked for the qualified taxpayer by the employee (not to exceed 2,000 hours per employee) divided by 2,000.
(B)In the case of a salaried full-time employee, annual full-time equivalent means the total number of weeks worked for the qualified taxpayer by the employee divided by 52.
(7)Designated census tract means a census tract within the state that is determined by the Department of Finance to have a civilian unemployment rate that is within the top 25 percent of all census tracts within the state and has a poverty rate within the top 25 percent of all census tracts within the state, as prescribed in Section 13073.5 of the Government Code.
(8)Economic development area means either of the following:
(A)A former enterprise zone. For purposes of this section, former enterprise zone means an enterprise zone designated and in effect as of December 31, 2011, any enterprise zone designated during 2012, and any revision of an enterprise zone prior to June 30, 2013, under former Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1 of the Government Code, as in effect on December 31, 2012, excluding any census tract within an enterprise zone that is identified by the Department of Finance pursuant to Section 13073.5 of the Government Code as a census tract within the lowest quartile of census tracts with the lowest civilian unemployment and poverty.
(B)A local agency military base recovery area designated as of the effective date of the act adding this subparagraph, in accordance with Section 7114 of the Government Code.
(9)Minimum wage means the wage established pursuant to Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code.
(10)(A)Qualified full-time employee means an individual who meets all of the following requirements:
(i)Performs at least 50 percent of his or her services for the qualified taxpayer during the taxable year in a designated census tract or economic development area.
(ii)Receives starting wages that are at least 150 percent of the minimum wage.
(iii)Is hired by the qualified taxpayer on or after January 1, 2014.
(iv)Is hired by the qualified taxpayer after the date the Department of Finance determines that the census tract referred to in clause (i) is a designated census tract or that the census tracts within a former enterprise zone are not census tracts with the lowest civilian unemployment and poverty.
(v)Satisfies either of the following conditions:
(I)Is paid qualified wages by the qualified taxpayer for services not less than an average of 35 hours per week.
(II)Is a salaried employee and was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified taxpayer.
(vi)Upon commencement of employment with the qualified taxpayer, satisfies any of the following conditions:
(I)Was unemployed for the six months immediately preceding employment with the qualified taxpayer. In the case of an individual who completed a program of study at a college, university, or other postsecondary educational institution, received a baccalaureate, postgraduate, or professional degree, and was unemployed for the six months immediately preceding employment with the qualified taxpayer, that individual must have completed that program of study at least 12 months prior to the individuals commencement of employment with the qualified taxpayer.
(II)Is a veteran who separated from service in the Armed Forces of the United States within the 12 months preceding commencement of employment with the qualified taxpayer.
(III)Was a recipient of the credit allowed under Section 32 of the Internal Revenue Code, relating to earned income, as applicable for federal purposes, for the previous taxable year.
(IV)Is an ex-offender previously convicted of a felony.
(V)Is a recipient of either CalWORKs, in accordance with Article 2 (commencing with Section 11250) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, or general assistance, in accordance with Section 17000.5 of the Welfare and Institutions Code.
(VI)(ia)Is either of the following:
(Ia)An ex-offender, hired on or after January 1, 2018, previously convicted of a felony who is between 18 to 25 years of age, inclusive, and who demonstrates completion of a work readiness program.
(Ib)An ex-foster youth, hired on or after January 1, 2018, who is between 18 to 25 years of age, inclusive, who was a child who was the subject of a petition filed pursuant to Section 300 of the Welfare and Institutions Code, whether or not the child had been removed from his or her home by the juvenile court pursuant to Section 319 or 361 of the Welfare and Institutions Code or was a child who was the subject of a petition filed pursuant to Section 602 of the Welfare and Institutions Code and had been removed from his or her home by the juvenile court pursuant to Section 727 of the Welfare and Institutions Code, and who demonstrates completion of a work readiness program.
(ib)For purposes of this subclause:
(Ia)Job training provider means an entity that delivers a combined job readiness and life-skills training program that, at a minimum, includes high school or continuing education courses. The entitys program may also offer additional services like job placement, career and mental health counseling, prisoner reentry services, and relapse prevention and sober-living support.
(Ib)Work readiness program means a program offered by a job training provider that provides vocational job training, educational opportunities, and life skills. A work readiness program shall include paid or unpaid on-the-job training opportunities, preapprenticeship programs, vocational instruction, or internship placement, the opportunity for academic advancement, the opportunity to earn at least one industry recognized certification, and a life-skills training component.
(ic)The qualified full-time employee described in this subclause shall not be taken into account for purposes of calculating the applicable percentage, as described in paragraph (2) of subdivision (b).
(id)The credit allowed by this section shall be allowed for work a qualified employee described in this subclause performs anywhere in the state.
(ie)The credit amount allowed by this section for work performed by a qualified employee described in this subclause shall only be taken into account for the adjustment to the aggregate amount of credit that may be allocated required by subdivision (g) of Sections 17059.2 and 23689 for the 201819 fiscal year and fiscal years thereafter.
(B)An individual may only be considered a qualified full-time employee for the period of time commencing with the date the individual is first employed by the qualified taxpayer and ending 60 months thereafter.
(11)(A)Qualified taxpayer means a corporation engaged in a trade or business within designated census tract or economic development area that, during the taxable year, pays or incurs qualified wages.
(B)In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section or Section 17053.73 shall be allowed to the pass-thru entity and passed through to the partners and shareholders in accordance with applicable provisions of this part or Part 10 (commencing with Section 17001). For purposes of this subdivision, the term pass-thru entity means any partnership or S corporation.
(C)Qualified taxpayer shall not include any of the following:
(i)Employers that provide temporary help services, as described in Code 561320 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(ii)Employers that provide retail trade services, as described in Sector 44-45 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(iii)Employers that are primarily engaged in providing food services, as described in Code 711110, 722511, 722513, 722514, or 722515 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(iv)Employers that are primarily engaged in services as described in Code 713210, 721120, or 722410 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition.
(v)(I)An employer that is a sexually oriented business.
(II)For purposes of this clause:
(ia)Sexually oriented business means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance.
(ib)Nude means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts.
(D)Subparagraph (C) shall not apply to a taxpayer that is a small business.
(12)Qualified wages means those wages that meet all of the following requirements:
(A)(i)Except as provided in clause (ii), that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds 150 percent of minimum wage, but does not exceed 350 percent of the minimum wage.
(ii)(I)In the case of a qualified full-time employee employed in a designated pilot area, that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds ten dollars ($10) per hour or an equivalent amount for salaried employees, but does not exceed 350 percent of the minimum wage. For qualified full-time employees described in the preceding sentence, clause (ii) of subparagraph (A) of paragraph (10) is modified by substituting ten dollars ($10) per hour or an equivalent amount for salaried employees for 150 percent of the minimum wage.
(II)For purposes of this clause:
(ia)Designated pilot area means an area designated as a designated pilot area by the Governors Office of Business and Economic Development.
(ib)Areas that may be designated as a designated pilot area are limited to areas within a designated census tract or an economic development area with average wages less than the statewide average wages, based on information from the Labor Market Division of the Employment Development Department, and areas within a designated census tract or an economic development area based on high poverty or high unemployment.
(ic)The total number of designated pilot areas that may be designated is limited to five, one or more of which must be an area within five or fewer designated census tracts within a single county based on high poverty or high unemployment or an area within an economic development area based on high poverty or high unemployment.
(id)The designation of a designated pilot area shall be applicable for a period of four calendar years, commencing with the first calendar year for which the designation of a designated pilot area is effective. The applicable period of a designated pilot area may be extended, in the sole discretion of the Governors Office of Business and Economic Development, for an additional period of up to three calendar years. The applicable period, and any extended period, shall not extend beyond December 31, 2020.
(III)The designation of an area as a designated pilot area and the extension of the applicable period of a designated pilot area shall be at the sole discretion of the Governors Office of Business and Economic Development and shall not be subject to administrative appeal or judicial review.
(B)Wages paid or incurred during the 60-month period beginning with the first day the qualified full-time employee commences employment with the qualified taxpayer. In the case of any employee who is reemployed, including regularly occurring seasonal increase, in the trade or business operations of the qualified taxpayer, this reemployment shall not be treated as constituting commencement of employment for purposes of this section.
(C)Except as provided in paragraph (3) of subdivision (m), qualified wages shall not include any wages paid or incurred by the qualified taxpayer on or after the date that the Department of Finances redesignation of designated census tracts is effective, as provided in paragraph (2) of subdivision (g), so that a census tract is no longer determined to be a designated census tract.
(13)Seasonal employment means employment by a qualified taxpayer that has regular and predictable substantial reductions in trade or business operations.
(14)(A)Small business means a trade or business that has aggregate gross receipts, less returns and allowances reportable to this state, of less than two million dollars ($2,000,000) during the previous taxable year.
(B)(i)For purposes of this paragraph, gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.
(ii)In the case of any trade or business activity conducted by a partnership or an S corporation, the limitations set forth in subparagraph (A) shall be applied to the partnership or S corporation and to each partner or shareholder.
(iii)For taxpayers that are required to be included in a combined report under Section 25101 or authorized to be included in a combined report under Section 25101.15, the dollar amount specified in subparagraph (A) shall apply to the aggregate gross receipts of all taxpayers that are required to be or authorized to be included in a combined report.
(C)(i)Small business shall not include a sexually oriented business.
(ii)For purposes of this subparagraph:
(I)Sexually oriented business means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance.
(II)Nude means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts.
(15)An individual is unemployed for any period for which the individual is all of the following:
(A)Not in receipt of wages subject to withholding under Section 13020 of the Unemployment Insurance Code for that period.
(B)Not a self-employed individual (within the meaning of Section 401(c)(1)(B) of the Internal Revenue Code, relating to self-employed individual) for that period.
(C)Not a registered full-time student at a high school, college, university, or other postsecondary educational institution for that period.
(c)The net increase in full-time employees of a qualified taxpayer shall be determined as provided by this subdivision:
(1)(A)The net increase in full-time employees shall be determined on an annual full-time equivalent basis by subtracting from the amount determined in subparagraph (C) the amount determined in subparagraph (B).
(B)The total number of full-time employees employed in the base year by the taxpayer and by any trade or business acquired by the taxpayer during the current taxable year.
(C)The total number of full-time employees employed in the current taxable year by the taxpayer and by any trade or business acquired during the current taxable year.
(2)For taxpayers who first commence doing business in this state during the taxable year, the number of full-time employees for the base year shall be zero.
(d)For purposes of this section:
(1)All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single taxpayer.
(2)In determining whether the taxpayer has first commenced doing business in this state during the taxable year, the provisions of subdivision (g) of Section 24416, without application of paragraph (7) of that subdivision, apply.
(e)(1)To be eligible for the credit allowed by this section, a qualified taxpayer shall, upon hiring a qualified full-time employee, request a tentative credit reservation from the Franchise Tax Board within 30 days of complying with the Employment Development Departments new hire reporting requirement as provided in Section 1088.5 of the Unemployment Insurance Code, in the form and manner prescribed by the Franchise Tax Board.
(2)To obtain a tentative credit reservation with respect to a qualified full-time employee, the qualified taxpayer shall provide necessary information, as determined by the Franchise Tax Board, including the name, the social security number, the start date of employment, the rate of pay of the qualified full-time employee, the qualified taxpayers gross receipts, less returns and allowances, for the previous taxable year, and whether the qualified full-time employee is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013.
(3)The qualified taxpayer shall provide the Franchise Tax Board an annual certification of employment with respect to each qualified full-time employee hire in a previous taxable year, on or before the 15th day of the third month of the taxable year. The certification shall include necessary information, as determined by the Franchise Tax Board, including the name, social security number, start date of employment, and rate of pay for each qualified full-time employee employed by the qualified taxpayer.
(4)A tentative credit reservation provided to a taxpayer with respect to an employee of that taxpayer shall not constitute a determination by the Franchise Tax Board with respect to any of the requirements of this section regarding a taxpayers eligibility for the credit authorized by this section.
(f)The Franchise Tax Board shall do all of the following:
(1)Approve a tentative credit reservation with respect to a qualified full-time employee hired during a calendar year.
(2)Determine the aggregate tentative reservation amount and the aggregate small business tentative reservation amount for a calendar year.
(3)A tentative credit reservation request from a qualified taxpayer with respect to a qualified full-time employee who is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013, shall be expeditiously processed by the Franchise Tax Board. The residence of a qualified full-time employee in a targeted employment area shall have no other effect on the eligibility of an individual as a qualified full-time employee or the eligibility of a qualified taxpayer for the credit authorized by this section.
(4)Notwithstanding Section 19542, provide as a searchable database on its Internet Web site, for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, the employer names, amounts of tax credit claimed, and number of new jobs created for each taxable year pursuant to this section and Section 17053.73.
(g)(1)The Department of Finance shall, by January 1, 2014, and by January 1 of every fifth year thereafter, provide the Franchise Tax Board with a list of the designated census tracts and a list of census tracts with the lowest civilian unemployment rate.
(2)The redesignation of designated census tracts and lowest civilian unemployment census tracts by the Department of Finance as provided in Section 13073.5 of the Government Code shall be effective, for purposes of this credit, one year after the date that the Department of Finance redesignates the designated census tracts.
(h)(1)For purposes of this section:
(A)All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single qualified taxpayer.
(B)All employees of all corporations that are members of the same controlled group of corporations shall be treated as employed by a single qualified taxpayer.
(C)The credit, if any, allowable by this section to each member shall be determined by reference to its proportionate share of the expense of the qualified wages giving rise to the credit, and shall be allocated in that manner.
(D)If a qualified taxpayer acquires the major portion of a trade or business of another taxpayer, hereinafter in this paragraph referred to as the predecessor, or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section for any taxable year ending after that acquisition, the employment relationship between a qualified full-time employee and a qualified taxpayer shall not be treated as terminated if the employee continues to be employed in that trade or business.
(2)For purposes of this subdivision, controlled group of corporations means a controlled group of corporations as defined in Section 1563(a) of the Internal Revenue Code, except that:
(A)More than 50 percent shall be substituted for at least 80 percent each place it appears in Section 1563(a)(1) of the Internal Revenue Code.
(B)The determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal Revenue Code.
(3)Rules similar to the rules provided in Sections 46(e) and 46(h) of the Internal Revenue Code, as in effect on November 4, 1990, shall apply to both of the following:
(A)An organization to which Section 593 of the Internal Revenue Code applies.
(B)A regulated investment company or a real estate investment trust subject to taxation under this part.
(i)(1)If the employment of any qualified full-time employee, with respect to whom qualified wages are taken into account under subdivision (a), is terminated by the qualified taxpayer at any time during the first 36 months after commencing employment with the qualified taxpayer, whether or not consecutive, the tax imposed by this part for the taxable year in which that employment is terminated shall be increased by an amount equal to the credit allowed under subdivision (a) for that taxable year and all prior taxable years attributable to qualified wages paid or incurred with respect to that employee.
(2)Paragraph (1) does not apply to any of the following:
(A)A termination of employment of a qualified full-time employee who voluntarily leaves the employment of the qualified taxpayer.
(B)A termination of employment of a qualified full-time employee who, before the close of the period referred to in paragraph (1), becomes disabled and unable to perform the services of that employment, unless that disability is removed before the close of that period and the qualified taxpayer fails to offer reemployment to that employee.
(C)A termination of employment of a qualified full-time employee, if it is determined that the termination was due to the misconduct, as defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California Code of Regulations, of that employee.
(D)A termination of employment of a qualified full-time employee due to a substantial reduction in the trade or business operations of the qualified taxpayer, including reductions due to seasonal employment.
(E)A termination of employment of a qualified full-time employee, if that employee is replaced by other qualified full-time employees so as to create a net increase in both the number of employees and the hours of employment.
(F)A termination of employment of a qualified full-time employee, when that employment is considered seasonal employment and the qualified employee is rehired on a seasonal basis.
(3)For purposes of paragraph (1), the employment relationship between the qualified taxpayer and a qualified full-time employee shall not be treated as terminated by reason of a mere change in the form of conducting the trade or business of the qualified taxpayer, if the qualified full-time employee continues to be employed in that trade or business and the qualified taxpayer retains a substantial interest in that trade or business.
(4)An increase in tax under paragraph (1) shall not be treated as tax imposed by this part for purposes of determining the amount of any credit allowable under this part.
(j)In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and the succeeding four years if necessary, until exhausted.
(k)The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(l)(1)Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 201314 fiscal year to the 202021 fiscal year, inclusive.
(2)The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the departments estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts.
(m)(1)This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
(2)Notwithstanding paragraph (1) of subdivision (a), this section shall continue to be operative for taxable years beginning on or after January 1, 2021, but only with respect to qualified full-time employees who commenced employment with a qualified taxpayer in a designated census tract or economic development area in a taxable year beginning before January 1, 2021.
(3)This section shall remain operative for any qualified taxpayer with respect to any qualified full-time employee after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, for the remaining period, if any, of the 60-month period after the original date of hiring of an otherwise qualified full-time employee and any wages paid or incurred with respect to those qualified full-time employees after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, shall be treated as qualified wages under this section, provided the employee satisfies any other requirements of paragraphs (10) and (12) of subdivision (b), as if the designated census tract was still designated and binding or the economic development area was still in existence.
SEC. 3.This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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Date
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Status
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|---|---|
| Oct 6, 2017 | Chaptered by Secretary of State. Chapter 542, Statutes of 2017. |
| Oct 6, 2017 | Approved by the Governor. |
| Sep 21, 2017 | Enrolled and presented to the Governor at 5:30 p.m. |
| Sep 14, 2017 | Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 12, 2017 | Ordered to special consent calendar. |
| Sep 8, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 7, 2017 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. |
| Sep 5, 2017 | Read second time. Ordered to third reading. |
| Sep 1, 2017 | Coauthors revised. |
| Sep 1, 2017 | Joint Rule 62(a) suspended. |
| Aug 30, 2017 | August 30 set for first hearing. Placed on APPR. suspense file. |
| Aug 29, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (August 29). Re-referred to Com. on APPR. |
| Aug 24, 2017 | Assembly Rule 56 suspended. |
| Aug 22, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.S. & T.M. |
| Aug 22, 2017 | From committee: Do pass and re-refer to Com. on E.S. & T.M. (Ayes 12. Noes 0.) (August 22). Re-referred to Com. on E.S. & T.M. |
| Jul 20, 2017 | Referred to Coms. on W.,P., & W. and E.S. & T.M. |
| Jul 17, 2017 | In Assembly. Read first time. Held at Desk. |
| Jul 17, 2017 | Read third time. Urgency clause adopted. Passed. (Ayes 38. Noes 0.) Ordered to the Senate. |
| Jul 11, 2017 | Read second time. Ordered to third reading. |
| Jul 10, 2017 | From committee: Do pass. (Ayes 7. Noes 0.) (July 10). |
| Jul 3, 2017 | Set for hearing July 10. |
| Jun 19, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 15, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0. Page 1517.) (June 13). |
| Jun 2, 2017 | Set for hearing June 13. |
| Jun 1, 2017 | Re-referred to Com. on N.R. & W. |
| May 23, 2017 | Withdrawn from committee. |
| May 22, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| May 16, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| May 1, 2017 | May 10 set for first hearing canceled at the request of author. |
| Mar 21, 2017 | Set for hearing May 10. |
| Mar 2, 2017 | Referred to Com. on GOV. & F. |
| Feb 17, 2017 | From printer. May be acted upon on or after March 19. |
| Feb 16, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
|
Description
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Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2017 | Special Consent Calendar SB507 Hueso et al. Urgency Clause | Senate Floor |
Passed |
|
| Sep 7, 2017 | SB 507 Hueso Third Reading Urgency By GLORIA | Assembly Floor |
Passed |
|
| Sep 1, 2017 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Aug 29, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Environmental Safety and Toxic Materials |
Passed |
|
| Aug 22, 2017 | Do pass and be re-referred to the Committee on [Environmental Safety and Toxic Materials] | Assembly Standing Committee on Water, Parks, and Wildlife |
Passed |
|
| Jul 17, 2017 | Passage | Senate Floor |
Passed |
|
| Jul 10, 2017 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 13, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Natural Resources and Water |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| County Of San Diego | ** Support | Sep 8, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 507
:
SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 6/13/17
AYES: Hertzberg, Stone, Allen, Atkins, Hueso, Jackson, Monning, Stern, Vidak
SENATE APPROPRIATIONS COMMITTEE: 7-0, 7/10/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SENATE FLOOR: 39-0, 7/17/17
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Mendoza
ASSEMBLY FLOOR: 79-0, 9/7/17 - See last page for vote
DIGEST:
This bill authorizes funds initially granted to the County of San Diego in the 2014 Budget Act, and re-appropriated in the 2017 Budget Act, to be available for the development, improvement, rehabilitation, protection, and restoration of natural and park lands, for specified studies of the valley, and for the development of a planned campground in the Tijuana River Valley.
Assembly Amendments
specify that the re-appropriated funds can be used for the development of a planned campground, as described in the Tijuana River Valley Regional Park Public Use Feasibility Study.
ANALYSIS: Existing law, Proposition 70, as approved by the voters in 1988, establishes the Wildlife Coastal, and Park Land Conservation Act (Conservation Act), which provided bond funds for wildlife, coastal and parkland conservation. Pursuant to the Conservation Act (Public Resources Code § 5907 (3)(A)(ii)), $10 million was directed to the County of San Diego for acquisition of natural lands in the Tijuana River Valley.
This bill:
- Amends the Budget Act of 2014 by amending an item of appropriation. Specifically, this bill directs that moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014, and re-appropriated in the Budget Act of 2017 as Item 3790-490, shall be available for the development, improvement, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley and the development of the campgrounds described in the “Tijuana River Valley Regional Park Public Use Feasibility Study.”
- Specifies that up to $500,000 of the moneys appropriated to the County of San Diego shall be used to update or conduct the following studies:
- An update to the Tijuana River Valley Recovery Team’s “Recovery Strategy: Living with the Water,” from January 2012 to include issues related to wastewater and runoff.
- A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
Background
In December 2012, a settlement was approved whereby the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786.
Land acquisition in the Tijuana River Valley is problematic because appropriate lands are not readily available, and the $2.1 million remains unspent.
Comments
Water quality is a common problem in the Tijuana River for multiple reasons. For example, during storms, wastewater overflows enter the river on the Mexico side of the border and flow downstream, impacting the downstream river valley. Erosion in the surrounding watershed can increase the sediment in the river and degrade water quality downstream.
This year, on February 6, 2017, a major sewage spill occurred in the Tijuana River Valley. Estimates of the size of the spill ranged from 28 million gallons of sewage to over 100 million gallons of sewage and precipitated the closer of some San Diego area beaches.
The Tijuana River Valley Regional Park Public Use Feasibility Study was published in January 2017 for the County of San Diego Department of Parks and Recreation by an engineering and design firm. This report provides planning details and analysis of proposed campgrounds and other recreational uses within the regional park. The report indicates that the demand for camping and other outdoor activities is high in San Diego County, and that improvements to the Tijuana River Valley Regional Park could provide desirable camping opportunities. In addition, the report indicates that the development of campgrounds and recreational amenities should be designed to avoid known cultural resources, as well as to avoid sensitive habitat and preserve contiguous areas of high quality habitat for the biological resources in this area.
Related/Prior Legislation
SCR 90 (Hueso, Resolution Chapter 80, Statutes of 2014) declared the Legislature’s intent to work with the Tijuana River Valley Recovery Team to take various actions to protect and preserve the Tijuana River Valley, to encourage collaboration with the team to protect and enhance our natural resources through improved management of sediment and trash, flood control, and ecosystem management.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, while the funds impacted by this bill have already been appropriated, they are unusable within current statutory limitations. This bill will expand the allowable uses of these funds in an effort to allow for their use. Absent this legislation the funds would remain in the state account. The policy changes outlined in the bill will allow for the expenditure of the $2.09 million in Proposition 70 funds granted to San Diego County.
County of San Diego
None received
ARGUMENTS IN SUPPORT: The author argues “the Tijuana River Valley is an environmental jewel consisting of a natural floodplain with wetland and riparian areas. For decades, it has suffered from significant pollution, including sediment, trash, and wastewater flowing into it from Mexico. In February 2017, over 29 million gallons of raw sewage flowed into the Tijuana River Valley, forcing once again the closure of beaches in our Southern coast and emitting sulfuric odors for miles.
The author further argues that “this bill is required in order to authorize the funds to be spent on the Tijuana River Valley for purposes other than acquisition while keeping consistent with the overall intent of the Conservation Act.”
ASSEMBLY FLOOR: 79-0, 9/7/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
9/8/17 15:28:10
**** END ****
SENATE THIRD READING
STR Bill Id:SB 507
Author:(Hueso)
As Amended Ver:August 22, 2017
2/3 vote. Urgency
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Water | 12-0 | Eduardo Garcia, Bigelow, Choi, Chu, Friedman, Gloria, Harper, Mathis, Rubio, Salas, Wood, Cervantes | |
Environmental Safety | 6-0 | Quirk, Dahle, Arambula, Chen, Cristina Garcia, Holden |
|
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Calderon, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Jones-Sawyer, Obernolte, Reyes |
|
SUMMARY: This bill authorizes funds originally granted to the County of San Diego in the 2014 Budget Act, and re-appropriated in the 2017 Budget Act, to be used for the improvement of the Tijuana River Valley (TJRV) and for the development of a planned campground. Specifically, this bill:
- Authorizes the County of San Diego to use $2.09 million in Proposition 70 funds for development, improvement, rehabilitation, protection, restoration, and studies of natural and park lands in the Tijuana River Valley and the development of the campground described in "The Tijuana River Valley Regional Park Public Use Feasibility Study."
- Authorizes up to $500,000 to update a study of the issues relating to wastewater and runoff, and conduct a study focused on the improvement and protection of natural lands, including the main river channel.
EXSITING LAW:
- Proposition 70, as approved by the voters in 1988, established the Wildlife Coastal, and Park Land Conservation Act, which provided bond funds for wildlife, coastal and parkland conservation. Pursuant to the act, $10 million was directed to the County of San Diego for acquisition of natural lands in the TJRV.
- In December 2012, a settlement was approved whereby the federal government agreed to pay $2.09 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786 and appropriated in the 2017 Budget Act as Item 3790-490.
FISCAL EFFECT: According to the Assembly Appropriations Committee, the bill revises the authorized uses for the expenditure of approximately $2.1 million in Proposition 70 funds granted to San Diego County. Funds are currently unusable within statutory limitations.
COMMENTS: The Tijuana River watershed is an approximately 1,700 square mile area that straddles the California-Mexico international border. The watershed drains through an urban environment into the 8 square mile TJRV in the furthest southwestern portion of San Diego County. The Tijuana estuary in the TJRV has been designated as one of 25 wetlands of international importance. Sediment, trash and other pollutants carried in stormwater runoff threaten the TJRV's valuable ecological, recreational, and economic resources. Beginning February 6, 2017, there was a large sewage spill originating in Mexico that lasted 17 days. The spill resulted in at least 28 million gallons of sewage reaching the Pacific Ocean and caused the closure of some San Diego area beaches.
Proposition 70, as approved by the voters in 1988, establishes the Wildlife Coastal, and Park Land Conservation Act, which provides bond funds for wildlife, coastal and parkland conservation. Pursuant to the act, $10 million was directed to the County of San Diego for acquisition of natural lands in the TJRV.
In December 2012, the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act to the Department of Pesticide Regulation as Item 3790-101-0786 for expenditure by June 30, 2017, for the acquisition of lands in the TJRV. These funds were appropriated in the 2017 Budget Act as Item 3790-490 for expenditure by June 30, 2018. Because eligible lands are not available, the $2.1 million remains unspent.
This bill is required to expend funds for purposes other than land acquisition while keeping consistent with the overall intent of the Wildlife Coastal, and Park Land Conservation Act.
Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096 FN: 0001693
Date of Hearing: August 30, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 507
Author:(Hueso) – As Amended Ver:August 22, 2017
Policy Committee: | Water, Parks and Wildlife Environmental Safety and Toxic Materials | Vote: | 12 - 0 |
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| ||
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Urgency: Yes State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill authorizes funds originally granted to the County of San Diego in the 2014 Budget Act, and re-appropriated in the 2017 Budget Act, to be used for the improvement of the Tijuana River Valley and for the development of a planned campground. Specifically, this bill:
- Authorizes the County of San Diego to use $2.09 million Proposition 70 funds for development, improvement, rehabilitation, protection, restoration, and studies of natural and park lands in the Tijuana River Valley and the development of the campground described in “The Tijuana River Valley Regional Park Public Use Feasibility Study.”
- Authorizes up to $500,000 to conduct or update a study of the issues relating to wastewater, runoff, the improvement and protection of natural lands, including the main river channel.
FISCAL EFFECT:
This bill revises the authorized uses for the expenditure of approximately $2.1 million in Proposition 70 funds granted to San Diego County. Funds are currently unusable within statutory limitations.
COMMENTS:
Background and Purpose. Proposition 70, approved by voters in 1988, established the Wildlife Coastal, and Park Land Conservation Act (Act). The Act provided bond funds for wildlife, coastal, and park land conservation. Ten million dollars was appropriated to San Diego County to acquire natural lands in the Tijuana River Valley.
In December 2012, the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786 for the acquisition of lands in the Tijuana River Valley. Because eligible lands are not available, approximately $2.1 million remains unspent and was re-appropriated in the 2017 Budget Act as Item 3790-101-490.
This bill is required to expend funds for purposes other than land acquisition while keeping consistent with the overall intent of the Act.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: August 29, 2017
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Bill Quirk, Chair
SBPCA Bill Id:SB 507
Author:(Hueso) – As Amended Ver:August 22, 2017
SENATE VOTE: 39-0
SUBJECT: Tijuana River Valley
SUMMARY: Authorizes funds granted to the County of San Diego in the 2014 Budget Act to be available for development, improvement, rehabilitation, protection, restoration, and studies of natural and park lands in the Tijuana River Valley. Specifically, this bill:
1) Authorizes the County of San Diego to use funds originally appropriated in the 2014 Budget Act and re-appropriated in the 2017 Budget Act for the improvement of the Tijuana River Valley. Authorizes using up to $500,000 of those funds for studies looking at issues relating to wastewater, runoff, the improvement and protection of natural lands, including the main river channel, and for the development of a campground planned for the Tijuana River Valley.
2) Declares that this bill is an urgency statute due to the fact that the funds that were appropriated in the 2014 Budget Act were only available to acquire new land, and that due to land constraints, new land in the Tijuana River Valley cannot be acquired with these funds and that it is critical to focus on funding improvements in the Tijuana River Valley due to a sewage spill into the Tijuana River in February 2017.
EXISTING LAW:
1) Establishes the Porter-Cologne Water Quality Control Act, which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code § 1300 et seq.)
2) Appropriates $2,090,000 to the Department of Parks and Recreation from the California Wildlife, Coastal, and Park Land Conservation Fund of 1988 to be available for expenditure, until June 30, 2017, to the County of San Diego for the acquisition of natural lands in the Tijuana River Valley. (Budget Act of 2014, Chapter 25, Item 3790-101-0786)
FISCAL EFFECT: Unknown.
COMMENTS:
Need for the bill: According to the author,
"The Tijuana River Valley (TJRV) is an environmental jewel consisting of a natural floodplain with wetland and riparian areas. For decades, it has suffered from significant pollution, including sediment, trash and wastewater flowing into it from Mexico. The surrounding businesses and community have been significantly impacted. In February 2017, over 29 million gallons of raw sewage flowed into the TJRV, forcing once again the closure of beaches in our Southern coast and emitting sulfuric odors for miles. While the TJRV offers residents and tourists an array of experiences, including trails and horseback riding, they are severely limited due to this contamination.
In 1988, California voters passed the Wildlife, Coastal, and Park Land Conservation Act (Act) which provided bond funds for wildlife, coastal and parkland conservation. The Act included a grant to the County of San Diego for the acquisition of natural lands in the TJRV. The County used the funds to acquire about 430 acres, of which 127.6 acres were taken by the federal government through eminent domain. In December 2014, a settlement was approved whereby the federal government agreed to pay $2.1 million as compensation for the lands seized. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014-15 fiscal year; however, the Tijuana River Valley has no more available land to acquire.
SB 507 is required in order to authorize the funds to be spent on the TJRV for purposes other than acquisition while keeping consistent with the overall intent of the Act. The bill would allow the funds to be used for development, rehabilitation, protection, and restoration, including studies of natural lands and parks in the TJRV. The TJRV is unique in that, unlike other natural resources covered under this Act, the community cannot fully enjoy everything it has to offer because of its serious contamination problems. These funds will go a long way in helping restore and develop the TJRV so that its full potential is realized."
Tijuana River Watershed: The Tijuana River Watershed is an approximately 1,700-square mile area that straddles the U.S. / Mexico border. While nearly three-quarters of the watershed is located in Mexico, it drains to the Pacific Ocean through the 8-square mile Tijuana River Valley (Valley) north of the border. The Valley is home to tidally flushed wetland, riparian, and upland habitats supporting a broad range of organisms, including threatened and endangered species, and includes a number of federally-listed historical and archaeological sites.
A diversity of land uses are present in the watershed, from largely undeveloped open space in the upper watershed to highly-urbanized, residential, commercial, military, and industrial areas in the lower watershed. Rapid urbanization has occurred over the past several decades, most dramatically in the city of Tijuana where more than 2.7 million people currently reside. Several large dams (Barrett and Morena in the U.S., and Rodríguez and El Carrizo in Mexico) control a large majority of the surface water flow in the watershed. While these dams provide reservoirs of potable water to support residents and associated infrastructure on both sides of the border, they also serve as traps for the downstream movement of sediment and trash to the lower watershed. Therefore, the sediment and trash produced in the 462-square mile area downstream of the dams are responsible for impacts to the Valley.
While significant improvements in wastewater treatment have, in recent years, improved water quality on both sides of the border, stormwater flows continue to bring substantial amounts of sediment, trash, and other contaminants into the Valley. The sediment and trash pollutants cause water quality impairments, threaten life and property from flooding, degrade valuable habitats, and impact recreational opportunities for residents and visitors.
Tijuana River Recovery Team: The Tijuana River Recovery Team (Recovery Team) is a collaboration of more than 30 federal, state, and local agencies and other interested parties from both sides of the U.S./Mexico border focused on addressing sediment, trash, and associated environmental issues. The mission of the Recovery Team is to bring together the governmental, administrative, regulatory, and funding agencies in tandem with advice from the scientific community, the environmental community, and affected stakeholders to protect the Valley from future accumulations of trash and sediment, identify, remove, recycle or dispose of existing trash and sediment, and restore the Tijuana River floodplain to a balanced wetland ecosystem.
The Recovery Team consists of the following members and organizations: Audubon Society; California Coastal Commission; California Coastal Conservancy; California Department of Conservation, Office of Mining and Reclamation; California Department of Fish and Wildlife; California Department of Resources Recovery and Recycling; California Environmental Protection Agency; California State Parks; California State Water Resources Control Board; City of Imperial Beach; City of San Diego; County of San Diego; International Boundary and Water Commission; National Marine Fisheries Service; National Oceanic and Atmospheric Administration; OpenOceans Global; San Diego Coastkeeper; San Diego County Water Authority; San Diego Regional Water Quality Control Board; San Diego State University; Scripps Institution of Oceanography; Southern California Coastal Water Research Project; Southwest Wetlands Interpretive Association; Surfrider; Tijuana River National Estuarine Research Reserve; Tijuana River Valley Equestrian Association; U.S. Army Corps of Engineers; U.S. Bureau of Reclamation; U.S. Customs and Border Patrol; U.S. Department of Agriculture; U.S. Environmental Protection Agency; U.S. Fish and Wildlife Service; and, U.S. Navy.
Tijuana River Recovery Strategy: The Recovery Strategy, Living with the Water 2012 (Recovery Strategy) is a collaborative recovery plan for the Valley spearheaded by the San Diego Regional Water Quality Control Board and drafted by the Recovery Team. The Recovery Strategy summarizes the first phase of actions for Tijuana River recovery and acknowledges that resolution to the sediment and trash problems will require partnerships between the U.S. and Mexico to provide watershed-based solutions. The Recovery Strategy asserts that source control and pollution prevention activities are often the best and most economically feasible long-term solutions to sediment, trash, and other water quality problems.
The Recovery Strategy summarizes the first phase of actions and outlines the steps necessary to clean up the Valley and restore its beneficial uses. The Recovery Strategy acknowledges that watershed-based solutions to the sediment and trash problems will require partnerships between the U.S. and Mexico, and asserts that source control and pollution prevention activities are often the best and most economically feasible long-term solutions.
Recent Sewage spill in Tijuana River: In February 2017, more than 29 million gallons of raw sewage flowed into the Tijuana River as a result of a sewer main collapse, forcing the closure of beaches and emitting sulfuric odors for miles.
On March 19, 2015, the Assembly Environmental Safety and Toxic Materials Committee held an oversight hearing on Border Water Quality in Imperial Beach California. This oversight hearing looked at the progress on, and challenges facing, action on the Tijuana River Recovery Strategy. While the Recovery Team has made strides implementing the Recovery Strategy, the work is not complete. While efforts have been made to reduce trash and sediment flows, there is an additional need to improve the quality of the water being discharged into and flowing through the Tijuana River. SB 507 provides funding to the County of San Diego, as a member of the Recovery Team, to achieve the short-term goals in the Recovery Strategy and begin the work on needed research regarding wastewater and runoff to achieve some longer-term goals.
Related legislation:
1) SCR 90 (Hueso, Chapter 80, 2014) declared the Legislature’s intent to work with the Tijuana River Valley Recovery Team to take various actions to protect and preserve the Tijuana River Valley, to encourage collaboration with the team to protect and enhance our natural resources through improved management of sediment and trash, flood control, ecosystem management, and recreation and education, and to promote bilateral ties with Mexico that will be beneficial to the enhancement of one of California’s most resilient ecosystems.
2) SB 167 (Ducheny, Chapter 333, Statutes of 2009) requires the California Department of Resources Recycling and Recovery to include additional information relating to waste tires in the California-Mexico Border Region, and authorizes funds generated by the California tire fee to be used for related border activities.
REGISTERED SUPPORT / OPPOSITION:
Support
County of San Diego (sponsor)
Opposition
None on file
Analysis Prepared by: Josh Tooker / E.S. & T.M. /
Date of Hearing: August 22, 2017
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Eduardo Garcia, Chair
SBPCA Bill Id:SB 507
Author:(Hueso) – As Amended Ver:June 19, 2017
SENATE VOTE: 39-0
SUBJECT: Tijuana River Valley
SUMMARY: Authorizes $2.09 million previously appropriated to the California Department of Parks and Recreation (DPR) to be available to the County of San Diego in the Budget Act of 2014 and reappropriated in the Budget Act of 2017, for the development, improvement, rehabilitation, protection, and restoration, including specified studies, of natural and park lands in the Tijuana River Valley (TJRV). Specifically, this bill:
- Allows for up to $500,000 of the money appropriated to the DPR and available to the County of San Diego to update or conduct studies to:
- Update the Tijuana River Valley Recovery Team’s January 2012 recovery strategy to include issues related to wastewater runoff.
- Focus on the improvement and protection of natural lands in the TJRV.
- Specifies that the availability of the $2.09 million is consistent with the purposes of Proposition 70, adopted by the voters in the June 7, 1988, statewide primary election.
- Is an urgency statute, and specifies the facts constituting the necessity for the urgency as:
- Constraints on appropriated funds to acquire new land.
- The sewage spill into the Tijuana River in February 2017.
EXISTING LAW:
- Proposition 70, as approved by the voters in 1988, established the Wildlife Coastal, and Park Land Conservation Act, which provided bond funds for wildlife, coastal and parkland conservation. Pursuant to the act, $10 million was directed to the County of San Diego for acquisition of natural lands in the TJRV.
- In December 2012, a settlement was approved whereby the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786 and appropriated in the 2017 Budget Act as Item 3790-490.
FISCAL EFFECT: According to the Senate Appropriations Committee, while the funds impacted by this bill have already been appropriated, they are unusable with the current statutory limitations. This bill will expand the allowable uses of these funds in an effort to allow for their use. Absent this legislation the funds would remain in the state account. The policy changes outlined in the bill will allow for the expenditure of the $2.09 million previously appropriated.
COMMENTS:
Author’s Statement:
The Tijuana River Valley (TJRV) is an environmental jewel consisting of a natural floodplain with wetland and riparian areas. For decades, it has suffered from significant pollution, including sediment, trash and wastewater flowing into it from Mexico. The surrounding businesses and community have been significantly impacted. In February 2017, over 29 million gallons of raw sewage flowed into the TJRV, forcing once again the closure of beaches in our Southern coast and emitting sulfuric odors for miles. While the TJRV offers residents and tourists an array of experiences, including trails and horseback riding, they are severely limited due to this contamination.
In 1988, California voters passed the Wildlife, Coastal, and Park Land Conservation Act (Act) which provided bond funds for wildlife, coastal and parkland conservation. The Act included a grant to the County of San Diego for the acquisition of natural lands in the TJRV. However, the Tijuana River Valley has no more available land to acquire.
This bill is required in order to authorize the funds to be spent on the TJRV for purposes other than acquisition while keeping consistent with the overall intent of the Act. These funds will go a long way in helping restore and develop the TJRV so that its full potential is realized.
Background: The Tijuana River watershed is an approximately 1,700 square mile area that straddles the California-Mexico international border. The watershed drains through an urban environment into the 8 square mile TJRV in the furthest southwestern portion of San Diego County. The Tijuana estuary in the TJRV has been designated as one of 25 wetlands of international importance. Sediment, trash and other pollutants carried in stormwater runoff threaten the TJRV’s valuable ecological, recreational, and economic resources. Beginning February 6, 2017, there was a large sewage spill originating in Mexico that lasted 17 days. The spill resulted in at least 28 million gallons of sewage reaching the Pacific Ocean and caused the closure of some San Diego area beaches.
Proposition 70, as approved by the voters in 1988, establishes the Wildlife Coastal, and Park Land Conservation Act, which provides bond funds for wildlife, coastal and parkland conservation. Pursuant to the act, $10 million was directed to the County of San Diego for acquisition of natural lands in the TJRV.
In December 2012, the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act to the DPR as Item 3790-101-0786 for expenditure by June 30, 2017, for the acquisition of lands in the TJRV. These funds were appropriated in the 2017 Budget Act as Item 3790-490 for expenditure by June 30, 2018. Because eligible lands are not available, the $2.1 million remains unspent.
The author and sponsor of the bill have been working with the DPR on the best use of these funds in the TJRV. The bill would expand and extend the eligible uses of the funds to June 30, 2020.
Prior and Related Legislation: SCR 90 (Hueso), Resolution Chapter 80, Statutes of 2014, declared the Legislature’s intent to work with the Tijuana River Valley Recovery Team to take various actions to protect and preserve the Tijuana River Valley, to encourage collaboration with the team to protect and enhance our natural resources through improved management of sediment and trash, flood control, and ecosystem management.
Supporting Arguments: All available lands have been purchased and incorporated into San Diego County’s Tijuana River Valley regional park. The county has been working with State Parks and intends to use the funding to build a permanent campground within the Tijuana River Valley Regional Park, giving the public greater access to these natural lands. With its close proximity to densely developed neighborhoods, this project represents a unique opportunity to connect underserved residents with nature. The bill also includes language that would allow a portion of funding to be used to conduct needed studies to look at the issues around bi-national pollution and its impact on the Tijuana River Valley, the county regional park, and the public beaches of San Diego County.
REGISTERED SUPPORT / OPPOSITION:
Support
County of San Diego
Opposition
None on File
Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 507
:
SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 6/13/17
AYES: Hertzberg, Stone, Allen, Atkins, Hueso, Jackson, Monning, Stern, Vidak
SENATE APPROPRIATIONS COMMITTEE: 7-0, 7/10/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
DIGEST:
This bill authorizes the money previously granted to the County of San Diego in the Budget Act of 2014 to be available for the development, improvement, rehabilitation, protection, and restoration, including the studies indicated in the bill, of natural and park lands in the Tijuana River Valley.
ANALYSIS: Existing law, Proposition 70, as approved by the voter in 1988, establishes the Wildlife Coastal, and Park Land Conservation Act (Conservation Act), which provides bond funds for wildlife, coastal and parkland conservation. Pursuant to the Conservation Act (Public Resources Code § 5907 (3)(A)(ii)), $10 million was directed to the County of San Diego for acquisition of natural lands in the Tijuana River Valley.
This bill:
- Amends the Budget Act of 2014 by amending an item of appropriation. Specifically this bill directs that moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available for the development, improvement, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
- Specifies that up to $500,000 of the moneys appropriated to the County of San Diego shall be used to update or conduct the following studies:
- An update to the Tijuana River Valley Recovery Team’s “Recovery Strategy: Living with the Water,” from January 2012 to include issues related to wastewater and runoff.
- A study focused on the improvement and protection of natural lands, including the main river channel, in the Tijuana River Valley.
Background
In December 2012, a settlement was approved whereby the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786.
Land acquisition in the Tijuana River Valley is problematic because appropriate lands are not readily available, and the $2.1 million remains unspent.
Comments
Water quality is a common problem in the Tijuana River for multiple reasons. For example, during storms, wastewater overflows enter the river on the Mexico side of the border and flow downstream, impacting the downstream river valley. Erosion in the surrounding watershed can increase the sediment in the river and degrade water quality downstream.
This year, on February 6, 2017, a major sewage spill occurred in the Tijuana River Valley. Estimates of the size of the spill ranged from 28 million gallons of sewage to over 100 million gallons of sewage and precipitated the closure of some San Diego area beaches.
Related/Prior Legislation
SCR 90 (Hueso, Resolution Chapter 80, Statutes of 2014) declared the Legislature’s intent to work with the Tijuana River Valley Recovery Team to take various actions to protect and preserve the Tijuana River Valley, to encourage collaboration with the team to protect and enhance our natural resources through improved management of sediment and trash, flood control, and ecosystem management.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, while the funds impacted by this bill have already been appropriated, they are unusable with the current statutory limitations. This bill will expand the allowable uses of these funds in an effort to allow for their use. Absent this legislation the funds would remain in the state account. The policy changes outlined in the bill will allow for the expenditure of the $2.09 million previously appropriated to San Diego County.
County of San Diego
OPPOSITION: (Verified 7/11/17)
None received
ARGUMENTS IN SUPPORT: The author argues “the Tijuana River Valley is an environmental jewel consisting of a natural floodplain with wetland and riparian areas. For decades, it has suffered from significant pollution, including sediment, trash, and wastewater flowing into it from Mexico. In February 2017, over 29 million gallons of raw sewage flowed into the Tijuana River Valley, forcing once again the closure of beaches in our Southern coast and emitting sulfuric odors for miles.
The author further argues that “this bill is required in order to authorize the funds to be spent on the Tijuana River Valley for purposes other than acquisition while keeping consistent with the overall intent of the Conservation Act.”
7/12/17 16:52:49
**** END ****
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 507 (Hueso) - Tijuana River Valley
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 507 authorizes the use of moneys appropriated to the County of San Diego in the Budget Act of 2014 for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
Fiscal Impact:
The policy changes outlined in the bill will allow for the expenditure of the $2.09 million previously appropriated to San Diego County. (See staff comments)
Background:
- Proposition 70, which was authorized by voters in 1988, established the Wildlife Coastal, and Park Land Conservation Act (Conservation Act). The Conservation Act provided bond funds for wildlife, coastal, and park land conservation. Ten million dollars was appropriated to San Diego County to acquire natural lands in the Tijuana River Valley.
In December 2012, the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786 for the acquisition of lands in the Tijuana River Valley. Because eligible lands are not available, the $2.1 million remains unspent.
Proposed Law: This bill
authorizes the use of moneys appropriated to the County of San Diego in the Budget Act of 2014 for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
Staff Comments:
Reauthorization of appropriated funds and the Suspense File threshold. The Suspense File threshold is based on the amount of monies that will be expended as a result of a bill that, absent enactment of the bill, would not be spent. While the funds impacted by this bill have already been appropriated, they are unusable with the current statutory limitations. This bill will expand the allowable uses of these funds in an effort to allow for their use. Absent this legislation the funds would remain in the state account.
-- END --
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Robert Hertzberg, Chair
2017 - 2018 Regular
Bill No: SB 507 Hearing Date: June 13, 2017
Author: | |||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Tijuana River Valley
BACKGROUND AND EXISTING LAW
- In 1988, Proposition 70 established the Wildlife Coastal, and Park Land Conservation Act (Conservation Act), which provided bond funds for wildlife, coastal and parkland conservation. Pursuant to the Conservation Act (Public Resources Code § 5907 (3)(A)(ii)), $10 million was directed to the County of San Diego for acquisition of natural lands in the Tijuana River Valley.
- In December 2012, a settlement was approved whereby the federal government agreed to pay $2.1 million as compensation for lands seized through eminent domain. These funds were returned to the 1988 Bond Act fund and then allocated in the 2014 Budget Act as Item 3790-101-0786.
- Land acquisition in the Tijuana River Valley is problematic because appropriate lands are not readily available, and the $2.1 million remains unspent.
PROPOSED LAW
This bill would amend the Budget Act of 2014 by amending an item of appropriation. Specifically this bill would direct that moneys appropriated to the County of San Diego pursuant to Item 3790-101-0786 of the Budget Act of 2014 shall be available for the development, rehabilitation, protection, and restoration, including studies, of natural lands in the Tijuana River Valley.
ARGUMENTS IN SUPPORT
The author argues “the Tijuana River Valley is an environmental jewel consisting of a natural floodplain with wetland and riparian areas. For decades, it has suffered from significant pollution, including sediment, trash, and wastewater flowing into it from Mexico. In February 2017, over 29 million gallons of raw sewage flowed into the Tijuana River Valley, forcing once again the closure of beaches in our Southern coast and emitting sulfuric odors for miles.
The author further argues that “this bill is required in order to authorize the funds to be spent on the Tijuana River Valley for purposes other than acquisition while keeping consistent with the overall intent of the Conservation Act.”
ARGUMENTS IN OPPOSITION
None Received
COMMENTS
- Water quality is a common problem in the Tijuana River for multiple reasons. For example, during storms, wastewater overflows enter the river on the Mexico side of the border and flow downstream, impacting the downstream river valley. Erosion in the surrounding watershed can increase the sediment in the river and degrade water quality downstream.
- This year, on February 6, 2017, a major sewage spill occurred in the Tijuana River Valley. Estimates of the size of the spill ranged from 28 million gallons of sewage to over 100 million gallons of sewage and precipitated the closer of some San Diego area beaches.
Previous/Recent Legislation
SCR 90 (Hueso) – This measure declared the Legislature’s intent to work with the Tijuana River Valley Recovery Team to take various actions to protect and preserve the Tijuana River Valley, to encourage collaboration with the team to protect and enhance our natural resources through improved management of sediment and trash, flood control, and ecosystem management.
SUGGESTED AMENDMENTS
After consulting with the author, committee staff recommend the following amendments.
AMENDMENT 1
Amend 5907.5 to read including two studies, identified as 1) an update to the Tijuana River Valley Recovery Strategy, to include wastewater and runoff, and 2) Tijuana River Main Channel Water Quality Protection Feasibility Study, which in combination are not to exceed a total cost of $500,000.
AMENDMENT 2
Sec. I ...shall be available for the development, improvement, rehabilitation, protection, and restoration, including studies, of natural and park lands in the Tijuana River Valley.
Sec. II (1) ... Development, improvement, rehabilitation, protection, and restoration, including studies, of natural and park land in the Tijuana River Valley.
AMENDMENT 3
Amend Budget Act of 2014 to Budget Act of 2017 to revert the appropriation to the current budget year.
SUPPORT
County of San Diego
OPPOSITION
None Received
-- END --
Discussed in Hearing
3MIN
Assembly Floor
1H
Assembly Standing Committee on Appropriations
14MIN
Assembly Standing Committee on Environmental Safety and Toxic Materials
5MIN
Senate Floor
7MIN
Senate Standing Committee on Appropriations
Bill Author
