The pace is picking up in the debate between Governor Jerry Brown’s budget proposals and the California enterprise zone program.
On Friday, Assemblyman and Chair of the Assembly Jobs Committee V. Manuel Perez unveiled three related bills to reform certain aspects of the enterprise zone program.   Perez is a strong supporter of enterprise zones and the proposed legislation seeks to preserve them in California.
The proposed legislation includes AB 231 , AB 232, and ABX1 11.  My quick read of all three bills does not reveal anything to shake my confidence in the program — just the opposite. The proposals strengthen the program by increasing accountability and synergy among local agencies involved.
Contrary to my previously expressed concerns, the proposals do not place a limitation on the amount of time allowed for companies to apply for employee certifications under the hiring credit program.  Nor do they eliminate Targeted Employment Areas (or TEAs).  The debate is far from over, however, and I fully expect modifications and new proposals to emerge during the next few weeks.
Perez’s proposal modifies but retains the TEA. It also preserves TEA residency as one condition for employee qualification under the hiring credit program.  Employee-eligibility under the TEA category would be limited, however, based on the employee’s compensation.
If I am reading the bills correctly, this would be the first time an employee’s eligibility under the hiring credit program is limited by his or her circumstances after hire.  All other criteria look solely at the employee’s circumstances immediately before the date of hire.  Under the new TEA category, higher-paid positions would not be eligible to generate the hiring credit.
Perez announced the bills during an event on Friday at Ernie Ball Guitar Strings in Coachella, CA.  Sterling Ball, the CEO of Ernie Ball Guitar Strings, is throwing his support behind Perez and the effort to counter any proposals to dismantle the program.