§ 10032. Application Requirements.
4 CA ADC § 10032Barclays Official California Code of RegulationsEffective: April 7, 2022
Effective: April 7, 2022
4 CCR § 10032
§ 10032. Application Requirements.
(A) The announcement will include the (1) application periods, (2) deadline to submit Applications for each application period, (3) tentative dates when the Authority will hold Board meetings to consider Applications, and (4) amount of sales and use tax exclusion available to award during each application period.
(B) The Executive Director may reschedule or amend any previously announced application period by providing notice on the Authority website and may reschedule or relocate any previously announced Authority Board meeting so long as the information is posted on the Authority website at least ten (10) days before the scheduled meeting.
(2) Applications must be submitted via e-mail to [email protected].
(4) $20 million in sales and use tax exclusions shall be available to award only to Applications requesting $2 million or less in sales and use tax exclusion through September each year. If any of the $20 million in sales and use tax exclusion remains after September, it shall be made available to award to all Applicants. Applications being considered under the Small Project Pool will be reviewed and presented to the CAEATFA Board for approval in the order in which the Applications are ranked based on Competitive Criteria, as established in Section 10032(a)(7)(B), and will be heard before Applications being considered for an award under the general pool of STE. When the amount requested in the Application exceeds the STE available from the Small Project Pool, the Authority shall award the remaining STE request using STE from the general pool of STE allocation, if any remains. Any Applicant requesting $2 million or less in STE that is not awarded from the Small Project Pool will be considered for an award from the general pool of STE allocation, if any remains.
(5) Except as provided in subparagraphs (A) and (B) below, Applications shall be capped at $10 million of sales and use tax exclusions per Applicant, per calendar year, based on the average statewide sales tax rate at time of Application. For any Applicant which has a parent company with an ownership interest greater than 50%, the $10 million cap also applies to the Applicant's parent company and the parent company's subsidiaries or affiliates.
(A) If STE will be available at the last application period of the calendar year after all Applications are considered, the Authority may provide additional STE to Applicants that qualified for additional STE but were capped pursuant to this paragraph. The remaining STE available will be awarded first to the last Applicant considered for additional STE pursuant to subparagraph (B), below, if the Applicant did not receive its full STE request, then to any additional Applicants wishing to exceed the $10 million cap that were not awarded pursuant to subparagraph (B), below. The Applications will be reviewed and presented to the CAEATFA Board for approval in the order in which they are ranked based on Competitive Criteria. If there is still additional STE available, then Applicants wishing to exceed $20 million in STE will be reviewed and presented to the CAEATFA Board for approval in the order in which they are ranked based on Competitive Criteria. Applicants wishing to exceed that cap must bring a revised Project Application or a new Application before the Authority Board for consideration in the last application period of the same calendar year in which the original Application was approved. The revised or new Application must include updated information requested in Section 10032 and will be evaluated pursuant to Section 10033. The Executive Director will announce end-of-the-year availability of sales and use tax exclusion no later than 28 days prior to the last Authority Board meeting of the calendar year.
(B) For Applicants wishing to exceed the $10 million in STE cap, $15 million in STE will be available to award to Applicants in addition to the $10 million in STE cap in the first application period of the calendar year. Requests for STE in addition to the $10 million in STE cap shall be capped at $10 million in STE, for a potential total award of $20 million in STE, and must be submitted during the first application period of the calendar year. The Applications will be reviewed and presented to the CAEATFA Board for approval in the order in which they are ranked based on Competitive Criteria, as established in Section 10032(a)(8)(B) below. If the amount requested in the last Application considered exceeds the STE available from the $ 15 million in STE set-aside, the Applicant shall only receive the amount remaining from the $15 million in STE set-aside. If any of the $15 million in STE is not awarded, the remaining STE will be made available to award to all Applicants.
(6) To the extent the total sales and use tax exclusions awarded during the calendar year reaches the Statutory Cap, additional Applications will not be reviewed during that calendar year. Applications that are received but not awarded due to the Statutory Cap will be placed on a waiting list. To the extent that additional STEs become available during the calendar year, it will be awarded first to the last Applicant considered, if that Applicant did not receive its full STE request. If the last Applicant considered received its full STE request, Applications on the waiting list will be reviewed and presented to the CAEATFA Board for approval in the order in which those Applications are ranked based on Competitive Criteria. The waiting list shall expire at midnight on January 1 of the year following the calendar year the list is established.
(A) The Projects with the greatest point score will be reviewed and presented to the CAEATFA Board. In the event of a tie, the Application representing the smaller STE award will move forward to consideration before the Authority. If the STE amounts are identical, the Application that was received by CAEATFA first shall be heard first. When the amount requested in the Application exceeds the STE available in the calendar year, the Authority shall award the remaining STE request using STE from the following calendar year, up to $2 million in STE. Any remaining Applications shall be placed on the waiting list.
f. 50 points for Applicants that are not eligible to use any of the exemptions established pursuant to Section 6377.1 of the Revenue and Taxation Code. The Authority staff will consult with the California Department of Tax and Fee Administration regarding questions of eligibility for any of the exemptions established pursuant to Section 6377.1 of the Revenue and Taxation Code; and
(1) Applications not meeting all requirements shall be considered incomplete. An Applicant shall be notified by the Authority should its Application be deemed incomplete, and the Applicant may correct any deficiency and resubmit the Application. Resubmitted Applications will be reviewed for completeness and, if complete, will be further reviewed by staff and presented to the Authority pursuant to the regular review and evaluation process and timeline with the date of submission determined based on the date the Authority receives the resubmitted Application.
(2) Determination of completeness, compliance with all requirements, and the scoring of the Application shall be based entirely on the documents contained in the Application as of the date on which the Application was submitted. Any additional documents pertaining to the requirements or scoring categories that the Applicant chooses to submit shall be accepted after the Application-filing date only with the understanding that, for purposes of determining the date the Application is deemed to have been received, the date the additional documentation is received shall be the date of receipt of the Application. In the event the Authority asks an Applicant for additional information or requests clarification or correction of errors, Applicants shall be given up to three (3) business days from the date of receipt of staff notification to submit said documents to complete the Application. A timely response shall not cause a redetermination of the date of receipt. The Authority may request additional clarifying information from third party sources, such as local government entities, other state agencies, or subject matter experts. To the extent that third party information is received that contradicts or otherwise calls into question information provided in the Application or otherwise may result in a reduction in the score that an Application would receive, the Applicant will be notified and will be given three (3) business days to respond to the third party information received.
(J) acknowledge, under penalty of perjury, that all information provided to the Authority is true and correct, and that the Applicant has an affirmative duty to notify the Authority of any material changes to the information submitted in the Application during the Application process and the term of the Regulatory Agreement.
(3) Designated Contacts. The Application must identify designated contacts who can respond to questions from the Authority or provide additional information if requested. If the designated contacts are not directly employed by Applicant, the Application must include appropriate documentation signifying the contact's authority to represent and act on behalf of the Applicant with respect to the Application.
d. For all types of business entities, other than publicly traded corporations, private equity firms or sole proprietorships, that are owned by another business entity with an ownership share greater than or equal to 10 percent, identify any individuals or businesses with an ownership share in the parent entity of 10 percent or more.
c. Identification of the Advanced Transportation Technology or Alternative Source product, component or system to be produced, the Advanced Manufacturing process to be utilized, or the type of Recycled Resource Extraction Project. In the case of a Facility producing property or products that, after further manufacture, will become the Green Component of an Advanced Transportation Technology or Alternative Source product or system, the Applicant must describe both the property or product produced by the Facility and the Green Component of the Advanced Transportation Technology or Alternative Source product or system for which the product produced will be used.
l. Average and minimum wage of each classification of full-time employees proposed to be hired or not retained using the following wage categories: up to $20,000; $20,001-$30,000; $30,001-$40,000; $40,001-$50,000; $50,001-$60,000; $60,001-$70,000; $70,001-$80,000; $80,001-$90,000; $90,001-$100,000; $100,001--$110,000; $110,001-$120,000; and over $120,000. Wages include monetary compensation paid to the employee each year, not including tips, commissions, bonuses, stock options, overtime, or other compensation of any kind.
(C) Qualified Property Information. Completed provisional Qualified Property list to include the following information for each piece of property to be subject to the sales and use tax exclusion. Good faith estimates are acceptable if specific property characteristics are not available at the time of the submission of the Application. Individual items of Qualified Property can be grouped together provided the individual items are reasonably related, such as items that will be used together to produce a particular sub-component or perform a discrete function in the manufacturing process. An Applicant is not to reduce the amount of Qualified Property listed in the Application to qualify for consideration under the Small Project Pool. An Application is not to increase the amount of Qualified Property listed in the Application if the total amount of sales and use tax exclusion requested in the Application period for which the Application was submitted represents sales and use tax exclusion in excess of the Statutory Cap.
(i) Applicants claiming any additional significant environmental benefits associated with use of their product beyond those associated with reduced energy consumption or increased Alternative Source energy generation may provide a description of these benefits, including the amount of pollution avoided and a quantification of the impact of the pollution reduction in dollars if possible.
a. Applicants with facilities located in California that perform research and development functions related to the product or production process at the Facility that is the subject of the Application may submit information establishing the location of the research and development facility and the connection between the research and development and the Facility, submission of which may increase an Applicant's score.
b. Applicants that have partnerships with educational institutions either for the purpose of training the workers at the Facility or for purposes of assisting in the training of potential future workers, including workers from disadvantaged communities including women, racial minorities, formerly incarcerated, and veterans, may submit information documenting this partnership, submission of which may increase an Applicant's score.
d. Applicants that provide benefits and fringe benefits to their employees may submit information on the types of benefits and fringe benefits provided, submission of which may increase an Applicant's score. Benefits include medical, health, dental, and vision premiums paid by the Applicant on behalf an employee, an employee's spouse or dependents. Fringe benefits include, but are not limited to, bonuses, pension plans, retirement contributions, profit-sharing programs, dependent care and assistance reimbursement, transportation subsidies, education reimbursement, gym subsidies, employee discounts, and paid leave.
(iii) Additional documentation only for Applicants claiming that without the exclusion the proposed Facility will not be sited in California. Determination of Facility benefits, as further delineated in Section 10033, may be increased for Facilities that would not locate production Facilities in California absent the grant of the sales and use tax exclusion. For Applicants claiming that Facility location or expansion decisions are dependent upon receipt of the sales and use tax exclusion, Applications must provide evidence to support the claim. Such evidence may include the following:
(G) Calculations and assumptions relied upon by the Applicant. For any calculation performed by or assumption relied upon by the Applicant in completing the Application, the Applicant must provide an explanation of the basis for the value resulting from the calculation or reasonableness of the assumption relied upon. Applicants may be asked to provide additional supporting information, including business plans, pro forma financial statements or other comparable documents used for the purpose of soliciting investors to verify responses contained in the Application. Applications that do not adequately document any calculations or assumptions relied upon will be considered incomplete.
Credits
Note: Authority cited: Section 26009, Public Resources Code; and Section 26011.8, Public Resources Code. Reference: Section 26011.8, Public Resources Code; and Section 6010.8, Revenue and Taxation Code.
History
1. New section filed 10-4-2010 as an emergency; operative 10-4-2010 (Register 2010, No. 41). A Certificate of Compliance must be transmitted to OAL by 4-4-2011 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 4-1-2011 as an emergency; operative 4-1-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-30-2011 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 6-24-2011 as an emergency; operative 6-24-2011 (Register 2011, No. 25). A Certificate of Compliance must be transmitted to OAL by 9-22-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 6-24-2011 order, including amendment of section and Note, transmitted to OAL 6-29-2011 and filed 8-10-2011; operative 9-28-2011 (Register 2011, No. 32).
5. Amendment of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; filed 3-8-2012 as an emergency; operative 3-8-2012 (Register 2012, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-4-2012 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; refiled 9-4-2012 as an emergency; operative 9-4-2012 (Register 2012, No. 36). A Certificate of Compliance must be transmitted to OAL by 12-3-2012 or emergency language will be repealed by operation of law on the following day.
7. Amendment of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; refiled 12-3-2012 as an emergency; operative 12-3-2012 (Register 2012, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-4-2013 or emergency language will be repealed by operation of law on the following day.
8. Certificate of Compliance as to 12-3-2012 order transmitted to OAL 2-28-2013 and filed 4-2-2013 (Register 2013, No. 14).
9. Amendment filed 10-7-2013 as a deemed emergency pursuant to Public Resources Code section 26009; operative 10-7-2013 (Register 2013, No. 41). A Certificate of Compliance must be transmitted to OAL by 4-7-2014 or emergency language will be repealed by operation of law on the following day.
10. Amendment refiled 4-3-2014 as a deemed emergency pursuant to Public Resources Code section 26009; operative 4-3-2014 (Register 2014, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-2-2014 or emergency language will be repealed by operation of law on the following day.
11. Amendment of section, including further amendment of subsection (c)(4)(F)(iii), refiled 6-30-2014 as a deemed emergency pursuant to Public Resources Code section 26009; operative 6-30-2014 (Register 2014, No. 27). A Certificate of Compliance must be transmitted to OAL by 9-29-2014 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 6-30-2014 order, including amendment of subsections (c)(1)(H) and (c)(4)(F)(iii)c., transmitted to OAL 9-29-2014 and filed 11-10-2014; amendments effective 11-10-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 46).
13. Amendment filed 8-9-2016 as a deemed emergency pursuant to Public Resources Code section 26009; operative 8-9-2016 (Register 2016, No. 33). A Certificate of Compliance must be transmitted to OAL by 2-6-2017 or emergency language will be repealed by operation of law on the following day.
14. Amendment refiled 2-7-2017 as a deemed emergency pursuant to Public Resources Code section 26009; operative 2-7-2017 (Register 2017, No. 6). A Certificate of Compliance must be transmitted to OAL by 5-8-2017 or emergency language will be repealed by operation of law on the following day.
15. Amendment refiled 5-4-2017 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5-9-2017 (Register 2017, No. 18). A Certificate of Compliance must be transmitted to OAL by 8-7-2017 or emergency language will be repealed by operation of law on the following day.
16. Reinstatement of section as it existed prior to 8-9-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 36).
17. Amendment filed 10-31-2017; operative 10-31-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 44).
18. New subsection (a)(7)(B)(v) filed 12-13-2017 as an emergency; operative 12-13-2017 (Register 2017, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-11-2018 or emergency language will be repealed by operation of law on the following day.
19. Reinstatement of section as it existed prior to 12-13-2017 emergency amendment by operation of Government Code section 11346.1(f) (Register 2018, No. 26).
20. New subsection (a)(7)(B)(v) filed 4-11-2019; operative 7-1-2019 (Register 2019, No. 15).
21. Amendment filed 12-16-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-16-2019 (Register 2019, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-15-2020 or emergency language will be repealed by operation of law on the following day.
22. Emergency filed 12-16-2019 extended 60 days (Executive Order N-40-20). A Certificate of Compliance must be transmitted to OAL by 8-14-2020 or emergency language will be repealed by operation of law on the following day.
23. Emergency filed 12-16-2019 extended an additional 60 days (Executive Order N-66-20). A Certificate of Compliance must be transmitted to OAL by 10-14-2020 or emergency language will be repealed by operation of law on the following day.
24. Reinstatement of section as it existed prior to 12-16-2019 emergency amendment by operation of Government Code section 11346.1(f) (Register 2020, No. 43).
25. Amendment filed 11-4-2020 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11-4-2020. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-66-20) (Register 2020, No. 45). A Certificate of Compliance must be transmitted to OAL by 8-31-2021 or emergency language will be repealed by operation of law on the following day.
26. Amendment refiled 8-30-2021 as a deemed emergency pursuant to Public Resources Code section 26009; operative 9-1-2021 (Register 2021, No. 36). A Certificate of Compliance must be transmitted to OAL by 11-30-2021 or emergency language will be repealed by operation of law on the following day.
27. Amendment refiled 11-29-2021 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-1-2021 (Register 2021, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-1-2022 or emergency language will be repealed by operation of law on the following day.
28. Amendment of section and Note filed 12-9-2021 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-9-2021 (Register 2021, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-7-2022 or emergency language will be repealed by operation of law on the following day.
29. Certificate of Compliance as to 11-29-2021 order, including amendment of subsection (b)(4), transmitted to OAL and filed 4-7-2022; amendments effective 4-7-2022 (Register 2022, No. 14).
This database is current through 8/23/24 Register 2024, No. 34.
Cal. Admin. Code tit. 4, § 10032, 4 CA ADC § 10032
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