Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Each enterprise zone shall have and maintain a vouchering plan containing policies and procedures for the operation of a vouchering program. The plan shall meet the following criteria:
(1) The plan shall have written vouchering policies and procedures that ensure compliance with Revenue and Taxation Code Sections 17053.74 and 23622.7, Government Code Section 7070 et seq., California Code of Regulations title 10, chapter 7.8 commencing with Section 5600, and this subchapter 21.
(2) The plan shall require any Applicant requesting a voucher to provide documentary evidence to substantiate that the employee for whom a voucher is requested satisfied immediately preceding the commencement of employment, the requirements of subdivision (b)(4)(A)(iv) of Revenue and Taxation Code Sections 17053.74 or 23622.7 as a qualified employee.
(3) The plan shall require the zone manager and zone staff to retain and keep confidential a copy of each voucher application received and each voucher issued and their supporting documentation. These records shall include the date the application was received, whether the application was approved or denied, and a statement signed by the zone manager of the basis for the decision on each voucher application. Unless otherwise required by law these records shall be accessible only to the zone manager and zone staff, the zone governing body, the Franchise Tax Board, the Department, and Applicants (or their designees) who may access only their own applications. All applications and voucher records shall be maintained for a minimum of five years from the date an application for a voucher is received.
(4) The plan shall require the zone to certify that the zone manager, zone staff, and any third party entities designated pursuant to subdivision (a)(7) of this section, are free of any conflicts of interest with Applicants or with the zone's obligations to objectively evaluate and process applications.
(5) The plan shall require the zone to certify that vouchering policies and procedures are administered consistently.
(6) The plan shall include an annual affirmative marketing procedure to make businesses aware of the opportunities to participate in the enterprise zone program and of the vouchering plan.
(7) A zone governing body may designate a third party entity to process voucher applications if the plan expressly provides for this designation and the third party entity enters into a written agreement with the zone, which agreement requires compliance with this Article 14 and the third party entity certifies that it is free of any conflict of interest as defined in this Article. The zone shall keep copies of all vouchers and applications processed by a third party.
(b) Zone managers shall apply to the Department for allocations of voucher numbers, and shall sequentially number vouchers issued using numbers in the allocation provided.
(c) Notwithstanding the designation by an enterprise zone governing body of an enterprise zone manager, or of a third party entity to process voucher applications, the enterprise zone governing body shall remain responsible for compliance with the requirements of this Article 14.
(d) Compliance with this Article 14 shall be evaluated as part of any Department audit of an enterprise zone program.
1. New section filed 11-27-2006; operative 11-27-2006 pursuant to Government Code section 11343.4 (Register 2006, No. 48).
Note: Authority cited: Section 7086, Government Code; and Sections 17053.74(c)(1) and 23622.7(c)(1), Revenue and Taxation Code. Reference: Sections 7076, 7076.1, 7085 and 7086, Government Code; and Sections 17053.74(c)(1) and 23622.7(c)(1), Revenue and Taxation Code.
