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Assemblyman Alejo Acts to Save Watsonville Enterprise Zone

Assemblyman Luis Alejo (D-28) has gutted and amended AB 484, which has already passed through the Assembly and now resides in the Senate. According to language posted today, the bill would:

…authorize the jurisdiction of an expiring enterprise zone to send a letter to the department expressing the intent of the jurisdiction to reapply for a new enterprise zone designation prior to the expiration of the designation of the enterprise zone. The bill would provide that if that letter is sent and, if prior to the expiration of the designation of the enterprise zone, the department has not issued a request for proposal and has not conditionally designated the maximum number of enterprise zones within the state, then businesses within the geographic boundaries of the existing enterprise zone may continue to be eligible to receive all enterprise zone benefits until the department completes any regulatory or administrative review, issues a request for proposal, and issues conditional designation letters to the maximum number of enterprise zones within the state.

The new legislation is a reaction to a memo issued by HCD last October in which the Department announced that the Administration would not issue applications for new zones to replace the two zones expiring in 2012 as had been the past practice. The Antelope Valley Enterprise Zone already expired on January 31, 2012 and the Watsonville Enterprise Zone, which is in Assemblyman Alejo’s district, is scheduled to expire on April 30, 2012.

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