Runners Economic Incentive Package Passes First Committee
Legislation will cut red tape and promote job creation
Assemblywoman Sharon Runner's (R-Lancaster) economic incentive package passed its first test this week with flying colors. Runner garnered unanimous support for her legislation, which will allow businesses more efficient judicial access and facilitate greater investment in Enterprise Zones (EZ's), such as the Antelope Valley. "This legislative package supports our working men and women by reducing economic obstacles and promoting job creation," said Runner. "Gaining bi-partisan support early-on should provide momentum as these bills move through the legislative process."
Runner's legislation makes simple amendments to state law that will streamline government bureaucracy and encourage business growth. AB 2588 addresses the myriad of mandates, forms, and applications that California businesses face. As Runner stated, "even a business that wishes to stop doing business in California must currently file termination documents with the Secretary of State." Under current law, if this termination is wrongfully filed, then the business must sue the Secretary of State. AB 2588, would eliminate this unnecessary step and simply require the business to obtain a judicial determination, and if appropriate a court order, for reinstatement. AB 2589 encourages greater employer investment in EZs. Throughout California, EZs target specified areas with special state and local incentives to increase business investment and promote the creation of new jobs. Unfortunately, a number of EZ employers are not able to utilize every EZ credit earned simply because they invested in multiple EZs. AB 2589 eliminates these penalties and allows employers to fully utilize all of the EZ credits to which they are entitled. "These bills make real economic sense," said Runner. "AB 2588 and AB 2589 will enable taxpayers to further grow California's economic prosperity, not its bureaucracy. "AB 2588 will next be heard in the Assembly Appropriations Committee, while AB 2589 moves on to the Assembly Committee on Revenue and Taxation.