§ 91502.1. — 91502.1. (Amended by Stats. 2009, Ch. 648, Sec. 4.)

California § 91502.1.

• Jurisdiction: California
• Code GOV: Government Code - GOV
• Title 10.: TITLE 10. CALIFORNIA INDUSTRIAL DEVELOPMENT FINANCING ACT
• Ch. 1.: CHAPTER 1. California Industrial Development Financing
• Art. 1.: ARTICLE 1. General Provisions and Definitions

Text

(a)
The Legislature declares that it is the policy of this state, consistent with environmental, resource conservation, and other policies, to facilitate for and on behalf of private enterprise the acquisition of property, either suitable for or evidencing an obligation respecting any one or more of the activities or uses set forth in Section 91503, through the issuance of revenue bonds by authorities in accordance with the criteria set forth in subdivision (b), and that this additional method of financing when made available in accordance with that policy serves a public purpose and will promote the prosperity, health, safety, and welfare of the citizens of the State of California.
(b)
The Legislature declares that the criteria to be utilized to determine whether this method of financing may be made available shall include the following:
(1)
Whether employment benefits arising out of the use of the facilities may ensue by securing or increasing (A) the number of employees of the company and any other direct users of the facilities or (B) compensation for that employment, the value of which may be expressed in terms of aggregate direct employment earnings.
(2)
Whether energy, mineral or natural or cultivated resource conservation benefits arising out of the use of the facilities may ensue by the reduction of waste, improvement of recovery or intensification of utilization of resources that otherwise would be less intensively utilized, or wasted, or not recovered, the value of which may be expressed in terms of the price and amount of the energy,
minerals, or other resources saved or recovered, or the price and amount of equivalent energy, minerals, or other resources that would be utilized were the resources not utilized as intensively.
(3)
Whether consumer benefits arising out of the use of the facilities may ensue by any of the following:
(A)
Improvement of the quantity or quality or reduction in the price of products, energy, or related services or facilities, the value of which may be expressed in terms of quantity and price differentials.
(B)
Production of new or improved products, or related services or facilities, the value of which may be expressed in terms of quantity and price.
(C)
The transfer of ownership of a business or place of work that has closed or is in danger of closing, to
its employees for the purpose of formation of an employee-owned corporation, as defined by subdivision (c).
(4)
Whether economic benefits to the surrounding community or state may ensue.
(c)
For purposes of this section, “employee-owned corporation” means a corporation that is under employee ownership. “Employee ownership” means the majority ownership of a business in this state by a majority of its employees under either of the following methods:
(1)
Establishment of an Employee Stock Ownership Plan (ESOP) pursuant to the federal Employee Retirement Income and Security Act (ERISA). All stock initially issued at the time of formation of the employee-owned corporation shall be allocated to the employees and become fully vested within five years of the date the employee-owned corporation begins operation. Voting rights
of the employees are established in accordance with Section 409A(e) of the Internal Revenue Code as effective on January 1, 1983.
(2)
Establishment of a worker-owned cooperative.

Legislative History

Amended by Stats. 2009, Ch. 648, Sec. 4. (AB 1009) Effective November 5, 2009.