State Assembly Hearings Scheduled for Today Over CA Enterprise Zone Questions


According to the Sacramento Bee’s Capitol Alert this morning, enterprise zones are on the agenda at today’s 1:00 PM meeting of the Assembly Budget Subcommittee on State Administration and Taxation  (read more).  Supporters are preparing arguments that Governor Brown’s proposal to eliminate the program would be unconstitutional.

An attorney for an effort to maintain enterprise zones will testify to legislators today that the state cannot constitutionally take away tax credits earned but not yet claimed for actions businesses have already taken in the zones, according to a copy of the testimony. The attorney will also argue that eliminating the zones “constitutes a massive breach of the state’s contractual obligations to localities and taxpayers” that relocated or expanded in the areas under the understanding that the credits would continue.

The California Enterprise Zone Association (www.CAEZ.org) has also helped to organize business leaders to testify on the program’s behalf.


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