Bill Text: CA SB151 | 2021-2022 | Regular Session | Enrolled

California Senate Bill 151 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Economic development.

Spectrum: Committee Bill

Status: (Passed) 2021-07-12 - Chaptered by Secretary of State. Chapter 74, Statutes of 2021. [SB151 Detail]

Download: California-2021-SB151-Enrolled.html

Enrolled July 05, 2021

Passed IN Senate July 01, 2021

Passed IN Assembly July 01, 2021

Amended IN Assembly June 28, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 151

Introduced by Committee on Budget and Fiscal Review

January 08, 2021

An act to amend Sections 12099.1, 12099.2, 12099.3, 12099.4, 10299.5, 12099.6, 12099.7, 12100.61, 12100.62, 12100.63, 12100.65, 12100.67, 12100.83, and 13995.44 of, and to add and repeal Article 4.4 (commencing with Section 12096.6) and Article 9 (commencing with section 12100.90) of Chapter 1.6 of Part 2 of Division 3 of Title 2, and Sections 12100.83.5 and 12100.83.6 of, and to repeal Section 12099 of, the Government Code, and to amend Section 18410.2 of, and to add Article 8 (commencing with Section 19292) to Chapter 5 of Part 10.2 of Division 2 to, and to add and repeal Section 17158.1 of, the Revenue and Taxation Code, relating to economic development, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL'S DIGEST

SB 151, Committee on Budget and Fiscal Review. Economic development.

(1) Existing law establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, under the control of a director.

Existing law, the California Innovation Hub Program, within GO-Biz, among other things, requires GO-Biz to designate Innovation Hubs (iHubs) within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists, as provided. GO-Biz is required to oversee, coordinate, and provide assistance to each iHub. Existing law also requires GO-Biz to request proposals for the program from applicants, as defined, that include specified information.

Existing law defines an iHub as a partnership between interrelated firms, local governments, economic development organizations, educational entities, and industries that collectively drive economic growth within a defined geographic area. Existing law establishes the Innovation Accelerator Account, as a continuously appropriated fund, within the California Economic Development Fund, to GO-Biz to be used for California Innovation Initiatives, as specified.

This bill would revise and recast the California Innovation Hub Program by, among other things, renaming the program as the “California Inclusive Innovation Hub Program,” renaming an Innovation Hub as an “Inclusive Innovation Hub,” “iHub Squared,” or “iHub2,” renaming the Innovation Accelerator Account as the “Inclusive Innovation Accelerator Account,” and replacing GO-Biz as the government entity directly supervising the program with the Office of the Small Business Advocate (office) within GO-Biz. The bill would also provide that the office limit the iHub2s within the state to stimulating partnerships, economic development, and job creation for underserved geographic areas, industry sectors, and business owners. The bill would define an iHub2 as a partnership between interrelated firms, local governments, economic development organizations, educational entities, and industries that collectively drive economic growth within a defined geographic area and for defined underserved geographic areas, industry sectors, and business owners. The bill would also make conforming changes in this regard.

Because the bill would affect a continuously appropriated fund by changing the purpose for which the funds are used, it would make an appropriation.

(2) Existing law establishes the Office of Small Business Advocate (CalOSBA) within GO-Biz to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace. Existing law prescribes the duties and functions of the Small Business Advocate, who is also the Director of CalOSBA.

(A) Existing law, until January 1, 2024, establishes the California Small Business COVID-19 Relief Grant Program within CalOSBA. The program requires CalOSBA to make grants to assist qualified small businesses negatively affected by the COVID-19 pandemic, in accordance with specified criteria, including geographic distribution based on COVID-19 restrictions and industry sectors most impacted by the pandemic, among other things. Existing law appropriates $2,075,000,000 from the General Fund to the Golden State Stimulus Emergency Fund to be transferred to the Office of Small Business Advocate for purposes of the program.

Existing law requires that $50,000,000 of those funds be allocated in a single round to eligible nonprofit cultural institutions, as defined.

This bill would instead require that a total of $50,000,000 be allocated in one or more rounds.

(B) This bill would establish the California Microbusiness COVID-19 Relief Grant Program within CalOSBA to assist qualified microbusinesses, as defined, that have been significantly impacted by the COVID-19 pandemic, as provided. The bill would require CalOSBA to administer a Request for Proposal (RFP) in no more than 2 rounds for a specified period of time per round for eligible grantmaking entities defined as a county or consortium of nonprofit, community-based organizations, as specified. The bill would permit the CalOSBA and eligible grantmaking entities to use a certain percentage of the funds for the program’s administrative expenses. The bill would require CalOSBA to adopt regulations to implement these provisions and would provide that these regulations are exempt from the Administrative Procedure Act. The bill would make these provisions subject to appropriation by the Legislature. By requiring qualified microbusinesses to make specified certifications under penalty of perjury, the bill would expand a crime and impose a state-mandated local program. The bill would repeal these provisions on December 31, 2022.

The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define “gross income” as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income.

This bill would exclude from gross income grant allocations made pursuant to the California Microbusiness COVID-19 Relief Grant Program for taxable years beginning on or after January 1, 2020, and before January 1, 2023.

(C) This bill would create the California Nonprofit Performing Arts Grant Program within CalOSBA. The bill would provide that the purpose of the program is to provide grants to eligible nonprofit performing arts organizations, as defined, to encourage workforce development. Subject to appropriation by the Legislature, the bill would require $50,000,000 to be allocated in one or more rounds to eligible nonprofit performing arts organizations that meet certain criteria. The bill would require these grants to be awarded on a first-come-first-served basis in specified amounts depending on the applicant’s annual gross revenue in the 2019 taxable year. The bill would require GO-Biz to post certain information on its internet website and provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature. The bill would repeal these provisions on December 31, 2022.

(D) This bill would create the California Venues Grant Program within CalOSBA. The bill would provide that the purpose of the program is to provide grants to eligible independent live events, as defined, that have been affected by COVID-19 in order to support their continued operation. Subject to appropriation by the Legislature, the bill would require $150,000,000 to be allocated in one or more rounds to eligible independent live events that meet certain criteria. The bill would set forth parameters for prioritization of grants and would require these grants to be in an amount equal to the lesser of $250,000 or 20% of gross earned revenue for the 2019 taxable year. The bill would require GO-Biz to post certain information on its internet website and provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature. The bill would repeal these provisions on December 31, 2022.

(3) Existing law, until January 1, 2024, creates the California Small Business Development Technical Assistance Expansion Program within GO-Biz. Upon appropriation of funds, GO–Biz is required to administer the program for the provision of grants to expand the capacity of small business development technical assistance programs in California, as specified, that provide one-on-one confidential consulting and training to small businesses and entrepreneurs. Existing law requires a federal small business technical assistance center that receives funding under this program to provide periodic performance and financial reports and to provide a final written performance and financial report within 60 days following the completion of an agreement term.

This bill would place the administration of the California Small Business Development Technical Assistance Expansion Program within the duties of CalOSBA and its director. The bill would revise the program generally to apply to small business technical assistance centers that are funded privately and would make a variety of conforming changes in this regard. The bill would make a finding of legislative intent, in accordance with specified federal law, in connection with allowing persons who are undocumented to receive consulting and training services and microgrants pursuant to the program.

The bill would also require the CalOSBA upon appropriation of necessary funds, to establish a grant program designated as the California Dream Fund Program, to provide grants, as specified, in connection with the above-described program to be disbursed through California Small Business Technical Assistance Expansion Program grantees. The bill would exempt certain records connected to the program from public disclosure.

(4) Existing law establishes the California Travel and Tourism Commission in the Office of Tourism for purposes of increasing the number of persons traveling to and within California. Existing law requires the commission to annually provide to all assessed businesses a report on the activities and budget of the commission, as described.

This bill would require the commission to also annually provide that report to the chairperson of the Joint Legislative Budget Committee, and the chairpersons of the Assembly Committee on Budget and the Senate Committee on Budget and Fiscal Review. The bill would require the commission to annually post the report on its internet website.

(5) Existing law vests the California Competes Tax Credit Committee (committee) with the authority to approve or reject written agreements between GO-Biz and a taxpayer related to the California Competes tax credit (office).

This bill would create, until January 1, 2030, and upon appropriation, a California Competes Grant Program. The bill would authorize the office to provide grants to an applicant that meets specified criteria relating to the creation of jobs or investments in the state, following the receipt of a fully executed written agreement containing certain provisions between the office and a qualified grantee, as defined. The bill would provide that the grant is only available for applicants, as defined, that have not received a California Competes tax credit for the same jobs or investments for which the grant is to be allocated. The bill would set forth procedures for recapturing grant amounts if the qualified grantee fails to satisfy the terms of the written agreement and would set forth additional duties of the committee and office in relation to the program.

(6) Existing law makes it a misdemeanor for the Franchise Tax Board or any member thereof, or as specified, who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed under specified laws, to disclose or make known in any manner information as to the amount of income or any particulars, as provided.

This bill would also make this provision applicable to all information obtained by the Franchise Tax Board and office for the purpose of administering the program and recapturing grant amounts. By expanding the scope of a crime, the bill would impose a state-mandated local program.

(7) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(9) This bill would make its provisions severable.

(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.

Article 4.4 (commencing with Section 12096.6) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article 4.4. California Competes Grant Program

12096.6.

For purposes of this article, all of the following definitions apply:

(a) “Applicant” means any taxpayer, including, but not limited to, an individual, corporation, or partnership, submitting a California Competes Grant Program application to GO-Biz that is a person or entity legally authorized to do business in California or that will incorporate, qualify, or register with the Secretary of State to do business in California prior to the execution of an agreement under this article.

(b) “California Competes Grant Program” means the program that authorizes the grants allowed under this article.

(c) “Committee” means the California Competes Tax Credit Committee established in Section 18410.2 of the Revenue and Taxation Code.

(d) “GO-Biz” means the Governor’s Office of Business and Economic Development.

(e) “Qualified grantee” means an applicant for grants under this article that satisfies the requirements of subdivision (b) of Section 12096.6.1.

(f) “Recaptured grant amount” shall mean the amount identified in any recommendation for recapture of a grant approved, in whole or in part, by the committee pursuant to this article and Section 18410.2 of the Revenue and Taxation Code.

12096.6.1.

(a) Upon appropriation by the Legislature, GO-Biz shall establish the California Competes Grant Program pursuant to this article.

(b) Upon appropriation by the Legislature, GO-Biz is authorized to provide grants pursuant to this article. GO-Biz shall provide grants only to an applicant that meets at least one of the following criteria:

(1) The applicant will create at least 500 new, full-time jobs in this state, determined on the basis of an annual full-time equivalent, as defined in Section 8000 of Title 10 of the California Code of Regulations, as that section read on January 1, 2021.

(2) The applicant will make a significant infrastructure investment, defined as a project requiring construction or renovation expenditures of at least ten million dollars ($10,000,000) over no more than five years, in this state.

(3) The applicant will create jobs or make the investments in a high-poverty area or high-unemployment area, as those terms are defined in Section 8000 of Title 10 of the California Code of Regulations, as that section read on January 1, 2021, in this state.

(c) The committee shall approve or reject grants pursuant to subdivision (b) of Section 18410.2 of the Revenue and Taxation Code.

(d) (1) The amount of a grant shall be set forth in a written agreement between GO-Biz and the qualified grantee, and shall be based on the factors as described in subparagraphs (A) to (L), inclusive, of paragraph (2) of subdivision (a) of Sections 17059.2 and 23689 of the Revenue and Taxation Code, and considerations described in paragraph (2).

(2) When determining whether to enter into a written agreement with a qualified grantee pursuant to this section, GO-Biz shall consider the extent to which the grant will influence the qualified grantee’s ability, willingness, or both, to create jobs in this state that might not otherwise be created in the state by the qualified grantee or any other California business. GO-Biz may also consider other factors, including, but not limited to, all of the following:

(A) The financial solvency of the qualified grantee and the qualified grantee’s ability to finance its proposed expansion.

(B) The qualified grantee’s current and prior compliance with federal and state laws.

(D) The reasonableness of the fee arrangement between the qualified grantee and any third party providing any services related to the grant allowed pursuant to this section.

(E) Any other factors GO-Biz deems necessary to ensure that the administration of the California Competes Grant Program allowed pursuant to this article is a model of accountability and transparency and that the effective use of the limited amount of grant funds is maximized.

(F) No more than 30 percent of the aggregate amount of grants appropriated in any fiscal year shall be allocated to any one grantee.

(e) A qualified grantee shall receive a grant pursuant to this article only if the qualified grantee has not received a tax credit, pursuant to Sections 17059.2 or 23689 of the Revenue and Taxation Code, for the same jobs or investment on which the grant is sought.

(f) The written agreement described in subdivision (d) shall include both of the following:

(1) Provisions indicating whether the grant is to be allocated in full upon approval, or in increments based on mutually agreed-upon milestones, when satisfactorily met by the qualified grantee.

(2) Provisions that allow the committee to recapture the grant, in whole or in part, if the qualified grantee fails to fulfill the terms and conditions of the written agreement.

12096.6.2.

(a) A grant may be recaptured, in whole or in part, if the qualified grantee fails to fulfill the terms and conditions of the written agreement entered into pursuant to Section 12096.6.1.

(b) Any recapture, in whole or in part, of a grant approved by the committee pursuant to Section 18410.2 of the Revenue and Taxation Code shall be collected by the Franchise Tax Board pursuant to Article 8 (commencing with Section 19292) of Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code.

(c) Amounts recaptured pursuant to Article 8 (commencing with Section 19292) of Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code shall be transmitted to the General Fund, and, if necessary, transferred to the fund from which the appropriation was made, if not the General Fund.

12096.6.4.

(a) GO-Biz shall do all of the following:

(1) Negotiate with a qualified grantee the terms and conditions of proposed written agreements that provide the grant allowed pursuant to this article to a qualified grantee.

(2) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2 of the Revenue and Taxation Code.

(3) Post on its internet website all of the following:

(A) The name of each qualified grantee allocated a grant.

(B) The estimated amount of the investment by each qualified grantee.

(D) The amount of the grant approved for the qualified grantee.

(E) The amount of the grant recaptured from the qualified grantee, if applicable.

(F) The primary location where the grantee has committed to increasing the net number of jobs or making investments. The primary location shall be listed by city or, in the case of unincorporated areas, by county.

(b) The Franchise Tax Board shall do both of the following:

(1) Review the books and records of all qualified grantees allocated a grant pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the qualified grantee and GO-Biz.

(2) Notwithstanding Section 19542 of the Revenue and Taxation Code, notify GO-Biz of a possible breach of the written agreement by a qualified grantee and provide detailed information regarding the basis for that determination.

12096.6.5.

(a) The Franchise Tax Board and GO-Biz may prescribe regulations as necessary or appropriate to carry out the purposes of this article.

(b) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board or GO-Biz pursuant to this article.

(c) Except as provided in this article, Section 19542 of the Revenue and Taxation Code shall apply to all information obtained by the Franchise Tax Board and GO-Biz for the purpose of administering the California Competes Grant Program.

(d) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board may disclose information to GO-Biz and GO-Biz may disclose information to the Franchise Tax Board for administration of the California Competes Grant Program.

12096.6.6.

This article shall be repealed on January 1, 2030.

SEC. 2.

Section 12099 of the Government Code is repealed.

SEC. 3.

Section 12099.1 of the Government Code is amended to read:

12099.1.

(a) The California Inclusive Innovation Hub Program is hereby created within the office, within GO-Biz.

(b) The office shall designate Inclusive Innovation Hubs within the state to stimulate partnerships, economic development, and job creation for underserved geographic areas, industry sectors, and business owners by leveraging assets to provide an innovation platform for startup businesses, research institutions, economic development organizations, business groups, and venture capitalists. The assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories.

SEC. 4.

Section 12099.2 of the Government Code is amended to read:

12099.2.

For purposes of this article, the following terms shall be defined as follows:

(a) “Applicant” means one or more entities that submit an application to the office. Eligible applicants shall be one or more of the following:

(1) A fully accredited institution of higher education.

(2) A private nonprofit corporation engaged in economic development activities.

(3) A county or municipality in this state that has a preexisting economic development department or program or both.

(4) A public economic development institution such as a workforce investment board or an economic development corporation.

(b) “GO-Biz” means the Governor’s Office of Business and Economic Development.

(c) “Inclusive Innovation Hub,” “iHub Squared,” or “iHub2” means a partnership between interrelated firms, local governments, economic development organizations, educational entities, and industries that collectively drive economic growth within a defined geographic area and for defined underserved geographic areas, industry sectors, and business owners.

(d) “iHub2” coordinator” means the individual or entity agreed to by the iHub2 partnership that is responsible for all of the following:

(1) Implementing the objectives of the iHub2.

(2) Serving as the primary agent responsible for coordinating services and resources and maintaining the iHub2 partnership.

(3) Serving as the primary liaison to the state and the office.

(e) “Office” means the Office of the Small Business Advocate.

SEC. 5.

Section 12099.3 of the Government Code is amended to read:

12099.3.

(a) The office shall issue a request for proposals for the California Inclusive Innovation Hub Program.

(b) An applicant’s proposal shall include, but shall not be limited to, all of the following information:

(1) A statement of purpose.

(2) A signed statement of cooperation and a description of the roles and relationships of each entity involved in the iHub2 partnership.

(3) A designated iHub2 coordinator.

(4) A clear explanation and map conveying the iHub2 physical boundary.

(5) A clearly stated designee to coordinate iHub2 activities.

(6) A clearly identified central location.

(7) Clearly identified benchmarks or milestones with approximate dates as to when they will be achieved.

(8) A complete budget including a description of secured funds with proof, pending funds, and potential future funding sources.

(9) A list and brief description of local and regional incentives and support programs.

(10) A clearly articulated commercial market focus and plan.

(11) A clearly articulated iHub2 management structure and plan that may include a description of the capabilities, qualifications, and experience of the proposed management team, team leaders, or key personnel who are critical to achieving the proposed objectives.

(12) A list of iHub2 assets and resources.

(13) A clearly articulated focus area of the iHub2 including underserved geographic areas, industry sectors, and business owners, or other targeted areas for development and growth.

(14) A list of specific resources available to support and guide startup companies.

(15) A clearly articulated list of goals to be achieved with the certification of the iHub2.

(16) Expectations for job development and business creation.

(17) Defined performance standards agreed upon by the partners involved in the development of the iHub2 that support underserved geographic areas, industry sectors, and business owners.

(18) Evaluation procedures that will be used to measure the level of achievement for each stated goal.

(19) A plan for sustainability.

(20) Organizational experience including capabilities, related experience, facilities, techniques, unusual resources, or unique combinations of these that are integral factors for achieving the proposed objectives.

(21) Demonstrated experience with innovation programs such as involvement with technology commercialization.

(22) Demonstrated experience with technology transfer or licensing.

(23) Demonstrated experience with intellectual property management.

(24) Evidence of community engagement and support.

(d) The office may designate an iHub2 for a term of not more than three years. An iHub2 may reapply for a designation without limitation on the number of times.

(e) (1) The iHub2 designation shall not be official until a memorandum of understanding is entered into by the applicant and the office. The memorandum of understanding shall include the goals and performance standards identified in the application and other related requirements as determined by the office.

(2) For an iHub previously designated by GO-Biz to be designated as an iHub2 by the office, the designation is required to be newly awarded.

(f) More than one iHub2 may be designated in an area to the extent that there is a clear distinction between the focus area of each iHub2.

(g) The office shall set guidelines for approval, designation, operation, reporting, redesignation, and dedesignation of iHub2 s.

(h) An iHub2 shall annually report to the office on its progress in meeting the goals and performance standards as described in the iHub2 application and implementing memorandum of understanding with the office. The office shall annually post the information from these reports on the office internet website and provide notice to the Governor and relevant policy committees of the Legislature that the information is available on the internet website.

SEC. 6.

Section 12099.4 of the Government Code is amended to read:

12099.4.

A designated iHub2 shall include at least one major university or research center or institute, one economic development organization, and consist of at least four of the following:

(a) A business support organization including a workforce development or training organization, incubator or business accelerator, business technical assistance providers, chamber of commerce, and networking organization that supports innovation.

(b) An educational consortium including technology transfer representatives.

(d) A business foundation, innovation foundation, science foundation, laboratory research institution, federal laboratory, or research and development facility.

(e) A municipal economic development division or department.

(f) A federal government partner such as a national laboratory.

SEC. 7.

Section 12099.5 of the Government Code is amended to read:

12099.5.

Before an official designation as an iHub2 the applicant shall self-certify both of the following:

(a) That the iHub2 will comply with the state’s nondiscrimination policy.

(b) That the iHub2 and its principals are current in payment of all state and local taxes owed unless they have entered into an agreement that was deemed satisfactory by the respective taxing authority and are in full compliance with the agreement.

SEC. 8.

Section 12099.6 of the Government Code is amended to read:

12099.6.

(a) An iHub2 may do all of, but shall not be limited to, the following:

(1) Provide free or low-cost advisory services and technical assistance to entrepreneurs and startups.

(2) Facilitate community programming and engagement with local partners, including, but not limited to, state universities and research institutes, state community colleges, local governments, state and federal service providers, private industry, workforce investment boards and agencies, small business and microenterprise development organizations, economic development organizations, and chambers of commerce.

(3) Facilitate partnerships between innovative startup businesses, research institutions, and venture capitalists or financial institutions.

(b) The iHub2 shall, to the extent feasible, work in close collaboration with the activities of the office as its primary statewide partner.

SEC. 9.

Section 12099.7 of the Government Code is amended to read:

12099.7.

The Inclusive Innovation Accelerator Account is hereby created within the California Economic Development Fund in the State Treasury. Subject to the approval of the Department of Finance, all moneys collected and received by the office or the Governor’s Office of Business and Economic Development on the office’s behalf for California Inclusive Innovation Initiatives from gifts, bequests, or donations shall be deposited in the Inclusive Innovation Accelerator Account. Notwithstanding Section 13340, the moneys in the account are continuously appropriated to the office to be used for California Inclusive Innovation Initiatives pursuant to the terms of the gift, bequest, or donation.

SEC. 10.

Section 12100.61 of the Government Code is amended to read:

12100.61.

The Legislature finds and declares all of the following:

(a) Small businesses form the core of the California economy and that it is in the interest of the state to increase opportunities and improve access to business and technical resources for entrepreneurs, the self-employed, and microbusiness and small business owners, particularly underserved business groups, including women, minority, and veteran-owned businesses, and businesses in low-wealth, rural, and disaster-impacted communities.

(b) The federal government funds and operates a range of technical assistance programs through contracts with nonprofit organizations that commit to serve and support small businesses in California, including the California Small Business Development Center Program, the Women’s Business Center Program, the Veteran Business Outreach Center Program, the Procurement Technical Assistance Center Program, the Manufacturing Extension Partnership, and the Minority Business Development Agency Center Program, and other similar programs. All of these programs provide free or low-cost services to California small businesses to enable their launch and sustained growth. It is in the interest of the state to collaborate with these programs to provide an economic environment in which small businesses can be successful, including participation in a seamless network of federal, state, and nonprofit programs, services, and activities that benefit small businesses.

(c) (1) The California Small Business Development Center Program, a component of the federal Small Business Development Center Program, plays a significant role in expanding and supporting California small businesses. There are more than 1,000 small business development centers in the United States and its territories, over 40 of which are located throughout California.

(2) The primary role of the California Small Business Development Center Program is to provide technical assistance to the state’s small businesses, including tracking assistance and outcomes that result in a meaningful contribution to the California economy. This program is administered through the federal Small Business Administration.

(d) (1) The Women’s Business Center Program plays a significant role in expanding and supporting women-owned small businesses in California. The Women’s Business Center Program was established to provide in-depth, substantive, outcome-oriented business services to women entrepreneurs, both nascent and established businesses, including a representative number of which are socially and economically disadvantaged.

(2) The Women’s Business Center Program meets its mission through the award of financial assistance to tax-exempt, private nonprofit organizations to enable them to effect a substantial economic impact in their communities, as measured by successful business startups, job creation and retention, and increased company revenues. This program is administered through the federal Small Business Administration.

(e) The Veteran Business Outreach Center Program in California plays an important role in meeting the unique needs of veterans in starting and operating businesses. The program is funded by the federal Small Business Administration’s veterans unit. The Veteran Business Outreach Center Program provides statewide small business consulting and workshops for veteran owners of small businesses, and veterans wishing to start a small business.

(f) (1) The Procurement Technical Assistance Center Program plays an important role in helping small businesses access public contract opportunities. Congress authorized the Procurement Technical Assistance Center Program in 1985 in an effort to expand the number of businesses capable of participating in the government marketplace.

(2) The Procurement Technical Assistance Center Program is administered by the federal Department of Defense. The program provides matching funds through cooperative agreements with state and local governments and nonprofit organizations for the establishment of procurement technical assistance centers to provide procurement assistance.

(3) Procurement technical assistance centers are staffed with counselors experienced in government contracting and provide a wide range of services including classes and seminars, individual counseling, and easy access to bid opportunities, contract specifications, procurement histories, and other information necessary to successfully compete for government contracts.

(g) The Hollings Manufacturing Extension Partnership was established in the 1980s as United States manufacturing faced increased competition from other countries. The United States faced key competitive challenges in consumer electronics, steel, and other industries. United States goods production processes were deemed comparatively outdated and innovation stagnated. The program is administered by the National Institute of Standards and Technology, within the Department of Commerce.

(h) The Minority Business Development Center Program is administered by the federal Department of Commerce’s Minority Business Development Agency. The program provides a range of services to minority-owned businesses seeking to expand to new markets, both foreign and domestic, as well as a wide range of technical assistance and business services, including business consulting, private equity and venture capital opportunities, facilitating joint ventures, and strategic partnerships.

(i) Nonprofit, community-based 501(c)(3) organizations, often funded by financial institutions, corporations, universities and colleges, corporate social responsibility programs, and philanthropy, have emerged to fill gaps in entrepreneurial education and training for microbusinesses and small businesses and entrepreneurs in underserved business groups, and play a critical role in the local small business ecosystems.

(j) It is the intent of the Legislature to allow persons who are undocumented to receive consulting and training services and microgrants pursuant to this article. The Legislature finds and declares that this article is a state law that provides payments or assistance for persons who are undocumented within the meaning of Section 1621(d) of Title 8 of the United States Code.

SEC. 11.

Section 12100.62 of the Government Code is amended to read:

12100.62.

Unless the context otherwise requires, the following definitions in this section shall govern the construction of this article:

(a) “California Office of the Small Business Advocate,” “CalOSBA,” or “office,” means the office created pursuant to Section 12098.

(b) “California Small Business Development Center Program” is comprised of the five regional networks of small business development centers operating in the state pursuant to a cooperative agreement between the fiscal agent and the federal Small Business Administration.

(c) “Committed nonstate local cash match” means funding awarded by a nonstate local source to a small business technical assistance center through a letter of intent, notice of award, or cash deposit.

(d) “Director” means the Director of the Governor’s Office of Business and Economic Development.

(e) “Federal small business technical assistance center” means an organization that contracts with a federal funding partner to operate a small business development center, a women’s business center, a veterans business outreach center, a manufacturing extension partnership center, a minority business development center, a procurement technical assistance center, or a federally funded similar program within this state to support small businesses.

(f) “Federal funding partner” means the federal Small Business Administration, federal Department of Commerce, federal Department of Defense, or any other federal agency with the authority to administer a small business technical assistance program in this state.

(g) “Fiscal agent” means the entity with which a funding partner contracts to administer small business technical assistance programs within a state or district. The fiscal agent shall be directly accountable to the funding partner for all aspects of the specified small business technical assistance program, including staffing, programming, outreach, securing any required matching funds to draw down federal funds or private funding sources, and reporting performance outcomes to operate the program in the fiscal agent’s area of responsibility.

(h) “GO-Biz”” means the Governor’s Office of Business and Economic Development.

(i) “Local cash match” means nonfederal funds that are spent on eligible program costs.

(j) “Manufacturing extension partnership center” means a California contractor recognized by the federal National Institute of Standards and Technology pursuant to the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418), at which small manufacturers can obtain information and assistance on new technology acceleration, supply chain management, lean processing, export development, sustainable manufacturing practices, and other issues related to innovation.

(k) “Minority business development agency center” means an entity or physical location, recognized by the federal Department of Commerce, from which a minority-owned small business may receive consulting and technical services to expand to new markets, both foreign and domestic.

(l) “Minority business development agency export center” means an entity or physical location, recognized by the federal Department of Commerce, from which a minority-owned small business may receive consulting and technical services to increase access to capital, contracts, and foreign markets.

(m) “Private funding source” means any entity that makes grants, and includes corporate or private philanthropy or similarly established nongovernmental entities.

(n) “Procurement act” means Chapter 142 (commencing with Section 2411) of Part IV of Subtitle A of Title 10 of the United States Code, which governs the Procurement Technical Assistance Cooperative Agreement program, administered by the federal Department of Defense.

(o) “Procurement technical assistance center” means an entity or physical location, recognized by the federal Department of Defense, from which a small business owner may receive free training on a variety of topics, including starting, operating, and expanding a small business.

(p) “Program” means the California Small Business Development Technical Assistance Expansion Program created pursuant to Section 12100.63 and administered in accordance with this article.

(q) “Small business act” means the Small Business Development Center Act of 1980 (Public Law 96-302), and any amendments to that act, which authorizes the Small Business Development Center Program, administered by the federal Small Business Administration.

(r) “Small business development center” means to an entity or physical location, recognized by the federal Small Business Administration, from which a small business owner or an aspiring entrepreneur may receive free one-on-one consulting and low at-cost training on a variety of topics, including starting, operating, and expanding a small business.

(s) “Small business technical assistance center” includes a federal small business technical assistance center or any established nonprofit community-based organization, exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, the mission of which includes economic empowerment of underserved microbusinesses or small businesses and entrepreneurs and that operates entrepreneurial or small business development programs which provide free or low-cost services to California’s underserved businesses and entrepreneurs to enable their launch and sustained growth.

(t) “Small Business Advocate” is the individual designated pursuant to Section 12098.1.

(u) “Veteran’s business act” means Section 657b of Title 15 of the United States Code, which establishes the Office of Veterans Business Development and governs veteran business outreach centers, administered by the federal Small Business Administration.

(v) “Veterans business center” means an entity or physical location, recognized by the federal Small Business Administration, from which a small business veteran owner or an aspiring veteran entrepreneur can receive free one-on-one consulting and low at-cost training on a variety of topics including starting, operating, and expanding a small business.

(w) “Women’s business act” means the Women’s Business Ownership Act of 1988 (Public Law 100-533), and any amendments to that act, administered by the federal Small Business Administration.

(x) “Women’s business center” means an entity or physical location, recognized by the federal Small Business Administration, from which a small business owner or an aspiring entrepreneur can receive free one-on-one consulting and low at-cost training on a variety of topics including starting, operating, and expanding a small business.

SEC. 12.

Section 12100.63 of the Government Code is amended to read:

12100.63.

(a) The California Small Business Technical Assistance Expansion Program is hereby created within the California Office of the Small Business Advocate.

(b) The program shall be under the direct authority of the Small Business Advocate.

(c) The purpose of the program is to assist small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers.

(d) In implementing the program, the office shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of small businesses in California.

(e) An applicant pursuant to this article shall be a small business technical assistance center operating as a group, including a regional or statewide network, or as an individual center.

(1) A small business technical assistance center operating as a group consisting of centers organized under a coordinating administrative or fiscal entity shall apply by submitting a single consolidated application to the office.

(2) A small business technical assistance center operating as an individual center shall apply by submitting a single application for that center to the office.

(f) The office shall administer the program to provide grants to expand the capacity of small business development technical assistance centers in California, administered by and primarily funded by federal agencies, but may also include other nonprofit small business technical assistance centers, that provide one-on-one confidential consulting and training to small businesses and entrepreneurs in this state. An applicant shall be eligible to participate in the program if the office determines that the applicant meets all of the following criteria:

(1) At the time of applying for funds, the applicant has an active contract with a federal funding partner to administer a program in this state, or has received a letter of intent from a federal funding partner to administer a federal small business technical assistance center program in this state within the next fiscal year. Alternatively, if the applicant is not a federally contracted small business technical assistance center, the applicant shall document a private funding source with similar intent and meet the criteria defined in subdivision (d) of Section 12100.62.

(2) (A) The applicant provided a plan of action and commitment to fully draw down all of the federal funds available using local cash match and state funds not described in Section 12100.65 during the duration of the award period. Alternatively, if the applicant is not a federally contracted small business technical assistance center, the applicant shall present a plan of action for drawing down any match required by those private funding sources using local cash match outside of state funds not described in Section 12100.65 during the award period. The office may request that the applicant provide details relating to the source and amount of these nonstate local match funds.

(B) If the applicant is a new small business technical assistance center, the applicant has demonstrated the ability to fully draw down substantially all federal funds available to it.

(3) The requested funding amount does not exceed the total federal award specified in the contract with the federal funding partner contract, or the private funding sources specified, but in any event is no less than twenty five thousand dollars ($25,000).

(4) The applicant seeks funding for one or more years, but no more than five years in duration.

(5) The grant agreements authorized by this article are not subject to the model contract provisions developed pursuant to Chapter 14.27 (commencing with Section 67325) of Part 40 of Division 5 of Title 3 of the Education Code.

(6) The applicant has a fiscal agent that is able to receive nonfederal funds.

(g) The office shall issue a request for proposal for grants under the program, which may contain the following information:

(1) The eligibility requirements described in subdivision (e).

(2) The available funding range.

(3) Funding instruments.

(4) The local cash match requirement described in subdivision (f).

(5) Operational capacity.

(6) The duration of the program.

(7) The start date of the program.

(8) Narrative requirements.

(9) Reporting requirements.

(10) Required attachments.

(11) Submission requirements.

(12) Application evaluation criteria.

(13) An announcement of an awards timeline.

(h) (1) The office shall evaluate applications received based on the following factors:

(A) The proposed use of the requested funding, including the specificity, measurability, and ability of the applicant to document and achieve the goals and objectives identified in its application.

(B) The proposed management strategy of the applicant to achieve its goals and objectives identified in its application.

(C) The applicant’s ability to complement and leverage the work of other local, state, federal, nonprofit, or private business technical assistance resource providers.

(D) The applicant’s historical performance with federal funding partner contracts or private funding sources and the strength of its fiscal controls.

(2) The office shall prioritize funding for applications that best meet the factors listed in paragraph (1) and give preference to applications that propose new or enhanced services to underserved business groups, including women, minority, and veteran-owned businesses, and businesses in low-wealth, rural, and disaster-impacted communities included in a state or federal emergency declaration or proclamation.

(i) State funds provided pursuant to the program shall be used to expand consulting and training services through existing and new centers, including satellite offices. State funds provided pursuant to the program shall not supplant nonstate local cash match dollars included in a federal small business technical assistance center’s plan described in subparagraph (A) of paragraph (2) of subdivision (f) or in any nonfederal small business technical assistance center’s plan.

(j) Subject to appropriation of necessary funds by the Legislature, a supplemental grant program designated as the California Dream Fund Program shall be established by the office to provide microgrants as described in this subdivision. The microgrants shall be disbursed through California Small Business Technical Assistance Expansion Program grantees. California Small Business Technical Assistance Expansion Program applicants, as prescribed by the office, may also request state funds designated as the California Dream Fund Program moneys to provide microgrants up to ten thousand dollars ($10,000) to seed entrepreneurship and small business creation in underserved small business groups that are facing capital and opportunity gaps. These microgrants shall be made available to startup clients participating in intensive startup training and consulting with the center networks.

(k) For purposes of implementing the California Dream Fund Program, a person or entity shall not seek information that is unnecessary to determine eligibility, including whether the individual is undocumented. Information that may be collected from individuals participating in the California Dream Fund Program shall not constitute a record subject to disclosure under Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1.

SEC. 13.

Section 12100.65 of the Government Code is amended to read:

12100.65.

Upon appropriation of funds by the Legislature for the purpose of implementing this article, the office shall make grants to small business technical assistance centers, consistent with the requirements of Section 12100.63.

SEC. 14.

Section 12100.67 of the Government Code is amended to read:

12100.67.

(a) Upon approval of an award to a small business technical assistance center pursuant to this article, the office shall issue to a notice of an award that includes all of the following:

(1) The amount of the award.

(2) A requirement that the small business technical assistance center periodically provide a performance report that includes all of the following information:

(A) The number of businesses consulted and trained.

(B) The amount of funds awarded.

(C) The size of businesses assisted based on the number of employees at the time those businesses were assisted, as reported by those assisted businesses, categorized based on the size of the assisted businesses, as determined by the office.

(D) The city and county in which any assisted businesses are located.

(E) Industry sectors of the businesses assisted, as reported by those businesses.

(F) A narrative description of how the funds awarded were used to expand services to underserved business groups, including women, minority, and veteran-owned businesses, and to help businesses and entrepreneurs to start, expand, facilitate investment, and create jobs in California, including in rural communities, low-wealth communities, and disaster-impacted areas included in a state or federal emergency declaration or proclamation.

(3) A requirement that the small business technical assistance center periodically provide a financial report that includes all of the following information:

(A) The name of any business consultant employed.

(B) The hourly rates of any business consultant employed.

(D) Costs for client trainings.

(E) Cost for administration and marketing.

(F) The duration of the assistance provided by the small business technical assistance center.

(G) The start date of the assistance provided by the small business technical assistance center.

(b) Each small business technical assistance center shall accept the reporting requirement in this section as a condition of receiving the grant.

(c) No more than 60 days following the completion of an agreement term pursuant to this article, a small business technical assistance center shall provide a final written performance and financial report to the office consistent with the requirements of this section.

(d) The director shall include the outcome of the program’s activities within the annual report required by Section 12098.4.

SEC. 15.

Section 12100.83 of the Government Code is amended to read:

12100.83.

(a) The California Small Business COVID-19 Relief Grant Program is hereby created within CalOSBA.

(b) The program shall be under the direct authority of the director.

(c) The purpose of the program is to provide grants to qualified small businesses affected by COVID-19 in order to support their continued operation.

(d) The office or its fiscal agent shall consult with local, regional, state, and federal public and private entities, as applicable, that share a similar mission to support the needs of small businesses and nonprofits in California.

(e) The office may contract with a fiscal agent, or amend an existing contract with a fiscal agent to meet the requirements of this article, to carry out the programs, at a rate of no more than 5 percent of administrative and programs funds appropriated by the Legislature for the purposes of this article.

(f) The office shall allocate grants to qualified small businesses that meet the requirements of this article.

(g) (1) The office shall conduct marketing and outreach for equitable awareness and the distribution of grants that includes all of the following:

(A) Engaging multiple partners, including, but not limited to, business and nonprofit associations, chambers of commerce, economic development corporations, and other nonprofit mission-based organizations, and organizations with nonprofit expertise.

(B) Providing access to technical assistance services covering all counties in the state and in multiple languages to reach non-English-speaking individuals in all counties in the state.

(C) Building awareness throughout the state, including in underserved and underbanked communities, by collaborating with multiple community groups to distribute program information, applicant access through multiple branded partner portals, and advertising and social media outreach through owned, paid, and earned media channels.

(2) For the qualified small business program, outreach in advance of open application rounds shall be conducted for a minimum of three weeks prior to opening each application round. Following each round, the fiscal agent shall assess service gaps and address outreach deficiencies as necessary to improve program equity.

(3) The fiscal agent shall provide information on how to connect to additional support resources to each applicant whether or not the applicant is selected as a grant recipient.

(h) Grants shall be prioritized, to the extent permissible under state and federal equal protection laws, in accordance with the following criteria:

(1) Geographic distribution based on COVID-19 health and safety restrictions following California’s Blueprint for a Safer Economy and county status and the Regional Stay Home Order.

(2) Industry sectors most impacted by the pandemic, including, but not limited to, those identified as in the North American Industry Classification System codes beginning with:

(A) 61 – Educational Services.

(B) 71 – Arts, Entertainment, and Recreation.

(D) 315 – Apparel Manufacturing.

(E) 448 – Clothing and Clothing Accessory Stores.

(F) 451 – Sporting Goods, Hobby, Musical Instrument, and Book Stores.

(G) 485 – Transit and Ground Passenger Transportation.

(H) 487 – Scenic and Sightseeing Transportation.

(I) 512 – Motion Picture and Sound Recording Industries.

(J) 812 – Personal and Laundry Services.

(K) 5111 – Newspaper, Periodical, Book, and Directory Publishers.

(3) Nonprofit mission services most impacted by the pandemic, including, but not limited to, emergency food provisions, emergency housing stability, childcare, and workforce development.

(4) Underserved small business groups that have faced historic barriers to access to capital and networks, and are defined as businesses majority owned and operated on a daily basis by women, minorities or persons of color, and veterans, or businesses in rural and low-wealth communities.

(5) Disadvantaged communities tracked by socioeconomic indicators that may include, but are not limited to, low to moderate income, poverty rates, unemployment, educational attainment, and other disadvantaging factors that limit access to capital and other resources.

(i) (1) Grants to qualified small businesses shall be awarded in a minimum of three rounds, which includes a closed round, in the following amounts:

(A) Five thousand dollars ($5,000) for applicants with an annual gross revenue of one thousand dollars ($1,000) to one hundred thousand dollars ($100,000) in the 2019 taxable year.

(B) Fifteen thousand dollars ($15,000) for applicants with an annual gross revenue greater than one hundred thousand dollars ($100,000), and up to one million dollars ($1,000,000), in the 2019 taxable year.

(C) Twenty five thousand dollars ($25,000) for applicants with an annual gross revenue greater than one million dollars ($1,000,000), and up to two million five hundred thousand dollars ($2,500,000), in the 2019 taxable year.

(2) The office, or its fiscal agent, may conduct, pursuant to the existing eligibility, criteria, or other requirements from Rounds 1 and 2 of the COVID-19 Relief Grant Program, a closed round for existing applicants from those two rounds in order to award up to 25 percent of any newly allocated funds while initial outreach for future open rounds is conducted.

(3) Rounds 1 and 2 of the COVID-19 Relief Grant Program shall not be considered a round for purposes of meeting the minimum round requirements described in paragraph (1).

(j) (1) A total of fifty million dollars ($50,000,000) of program funds shall be allocated in one or more rounds to eligible nonprofit cultural institutions.

(2) For purposes of this subdivision, “eligible nonprofit cultural institution” means a registered 501(c)(3) nonprofit entity that satisfies the criteria for a qualified small business pursuant to subdivision (f) of Section 12100.82, but with no limitation on annual gross revenue, and that is in one of the following North American Industry Classification System codes:

(A) 453920 - Art Dealers.

(B) 711110 - Theater Companies and Dinner Theaters.

(D) 711130 - Musical Groups and Artists.

(E) 711190 - Other Performing Arts Companies.

(F) 711310 - Promoters of Performing Arts, Sports, and Similar Events with Facilities.

(G) 711320 - Promoters of Performing Arts, Sports, and Similar Events without Facilities.

(H) 711410 - Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures.

(I) 711510 - Independent Artists, Writers, and Performers.

(J) 712110 - Museums.

(K) 712120 - Historical Sites.

(L) 712130 - Zoos and Botanical Gardens.

(M) 712190 - Nature Parks & Other Similar Institutions.

(3) Grants to eligible nonprofit cultural institutions shall be prioritized on documented percentage revenue declines based on a reporting period comparing Q2 and Q3 of 2020 versus Q2 and Q3 of 2019.

(4) Eligible nonprofit cultural institutions shall complete a new application for the grants allocated under this subdivision, even if they already applied in Rounds 1 and 2 of the COVID-19 Relief Grant Program.

(5) Grants shall not be awarded to an eligible nonprofit cultural institution under this subdivision if the eligible nonprofit cultural institution has otherwise been awarded a grant under subdivision (i).

(6) Grants under this subdivision shall be awarded in the following amounts:

(A) Five thousand dollars ($5,000) for applicants with an annual gross revenue of one thousand dollars ($1,000) to one hundred thousand dollars ($100,000) in the 2019 taxable year.

(C) Twenty-five thousand dollars ($25,000) for applicants with an annual gross revenue greater than one million dollars ($1,000,000) in the 2019 taxable year.

(k) Grant moneys awarded under this section shall only be used for costs resulting from the COVID-19 pandemic and related health and safety restrictions, or business interruptions or closures incurred as a result of the COVID-19 pandemic, including the following:

(1) Employee expenses, including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.

(2) Working capital and overhead, including rent, utilities, mortgage principal, and interest payments, but excluding mortgage prepayments, and debt obligations, including principal and interest, incurred before March 1, 2020.

(3) Costs associated with reopening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures.

(4) Costs associated with complying with COVID-19 federal, state, or local guidelines for reopening with required safety protocols, including, but not limited to, equipment, plexiglass barriers, outdoor dining, PPE supplies, testing, and employee training expenses.

(5) Any other COVID-19-related expenses not already covered through grants, forgivable loans, or other relief through federal, state, county or city programs.

(6) Any other COVID-19-related costs that are not human resource expenses for the state share of Medicaid, employee bonuses, severance pay, taxes, legal settlements, personal expenses, or other expenses unrelated to COVID-19 impacts, repairs from damages already covered by insurance, or reimbursement to donors for donated items or services.

(l) (1) Applicants may self-identify race, gender, and ethnicity. Within seven business days of the close of each application period, the office shall post the aggregate data, as available. Within 15 business days of the close of each application period, the office shall post data by legislative district, as available. Within 45 business days, the office shall post the actual awarded information, as available. All information shall be posted on the GO-Biz internet website and GO-Biz shall provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature.

(2) The office shall report to the Legislature the number of grants and dollar amounts awarded for each of the following categories:

(A) Race and ethnicity.

(B) Women-owned.

(D) Located in a disadvantaged community pursuant to paragraph (5) of subdivision (h).

(E) Located in a rural area.

(F) County.

(G) State Senate district.

(H) State Assembly district.

(I) Nonprofits, including by geography.

(J) Cultural institutions, including by geography.

(m) The fiscal agent shall issue Forms 1099 and otherwise adhere to tax reporting guidelines regardless of whether the grants are excluded from gross income for purposes of the Personal Income Tax Law (Part 10 (commencing with Section 17001)) or the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code).

SEC. 16.

Section 12100.83.5 is added to the Government Code, to read:

12100.83.5.

(a) The California Venues Grant Program is hereby created within CalOSBA.

(b) The program shall be under the direct authority of the director.

(c) The purpose of the program is to provide grants to eligible independent live events that have been affected by COVID-19 in order to support their continued operation.

(d) The office may contract with a fiscal agent, or amend an existing contract with a fiscal agent to meet the requirements of this section, to carry out the program, at a rate of no more than 5 percent of administrative and programs funds appropriated by the Legislature for the purposes of this section.

(e) Subject to appropriation by the Legislature, the office shall allocate grants to eligible independent live events that meet the requirements of this section.

(f) (1) Subject to appropriation by the Legislature, one hundred fifty million dollars ($150,000,000) shall be allocated in one or more rounds to eligible independent live events.

(2) For purposes of this section, “eligible venue” means a venue with the following characteristics:

(A) A defined performance and audience space.

(B) Mixing equipment, a public address system, and a lighting rig.

(i) A sound engineer.

(ii) A booker.

(iii) A promoter.

(iv) A stage manager.

(v) Security personnel.

(vi) A box office manager.

(D) For a venue owned or operated by a nonprofit entity that produces free events, the events are produced and managed primarily by paid employees, not by volunteers.

(3) For purposes of this section, “eligible independent live event” means an entity that satisfies all of the following:

(A) Is a sole proprietor, C-corporation, S-corporation, cooperative, limited liability company, partnership, limited partnership, or a registered 501(c)(3) nonprofit entity that satisfies the criteria defined in subparagraphs (B) through (G) inclusive of paragraph (1) of subdivision (f) of Section 12100.82.

(B) Is in any of the following North American Industry Classification System codes:

(i) 711211 – Sports Teams and Clubs.

(ii) 711310 - Promoters of Performing Arts, Sports, and Similar Events with Facilities.

(iii) 711320 - Promoters of Performing Arts, Sports, and Similar Events without Facilities.

(iv) 722410 – Drinking Places (Alcoholic Beverages).

(v) 722511 – Full-Service Restaurants.

(i) An individual or entity that meets both of the following criteria:

(I) As a principal business activity, organizes, promotes, produces, manages, or hosts live concerts, comedy shows, theatrical productions, or other events by performing artists at an eligible venue where both of the following take place:

(ia) A cover charge through ticketing or front door entrance fee is applied.

(ib) Performers are paid.

(II) At least 70 percent of the earned revenue of the individual or entity is generated through cover charges or ticket sales, production fees or production reimbursements, or the sale of event beverages, food, or merchandise.

(ii) An individual or entity that, as a principal business activity, makes tickets to events available for purchase by the public an average of not less than 60 days before the date of the event, which shall meet both of the following:

(I) The requirements of subclause (I) of clause (i).

(II) Performers are paid in an amount that is based on a percentage of sales, a guarantee in writing or standard contract, or another mutually beneficial formal agreement.

(iii) An individual or entity that meets both of the following criteria:

(I) As a principal business activity, organizes, promotes, produces, manages, or hosts live sporting events at an eligible venue where both of the following take place:

(ia) A cover charge through ticketing or front door entrance fee is applied.

(ib) Performers are paid.

(III) The individual or entity is not a major league or professional sports team or club, and is not owned by a major league or professional sports team or club.

(4) Notwithstanding paragraph (3), “eligible independent live event” shall not include entities that satisfy any of the following:

(A) Is a publicly traded corporation, or is majority owned and controlled by a publicly traded corporation.

(B) Owns or operates entities in more than five states or in another country, or is owned by an entity that owns or operates entities in more than five states or in another country.

(D) Demonstrates a percentage gross earned revenue decline in California of less than 70 percent, based on a reporting period comparing Q2, Q3, and Q4 of 2020, compared to Q2, Q3, and Q4 of 2019.

(E) Is an excluded entity as defined in paragraph (2) of subdivision (f) of Section 12100.82.

(5) Grants to eligible independent live events shall be prioritized on documented percentage gross earned revenue declines based on a reporting period comparing California gross earned revenues in Q2, Q3, and Q4 of 2020 and California gross earned revenues in Q2, Q3, and Q4 of 2019.

(6) Grants awarded under this subdivision shall be in an amount equal to the lesser of two hundred fifty thousand dollars ($250,000) or 20 percent of the applicant’s gross earned revenue in California for the 2019 taxable year.

(7) Eligible independent live event applicants shall complete a new and separate application for the grants allocated under this section even if they already have submitted an application for the California Small Business COVID-19 Relief Grant Program established in Section 12100.83.

(8) If an eligible independent live event has been awarded a grant under the California Small Business COVID-19 Relief Grant Program established in Section 12100.83, the amount of that grant shall be subtracted from the grant amount awarded under this section. If the grant amount awarded under Section 12100.83 is greater than the amount awarded under this section, the eligible independent live event shall not receive a grant under this subdivision and no amount shall be subtracted.

(9) No more than twenty five million ($25,000,000) in grants may be allocated to eligible independent live events that qualify under clause (iii) of subparagraph (C) of paragraph (2) of subdivision (f), unless all other eligible independent live events have received funding.

(g) Grant moneys awarded under this section shall only be used for costs resulting from the COVID-19 pandemic and related health and safety restrictions, or business interruptions or closures incurred as a result of the COVID-19 pandemic, including the following:

(1) Employee expenses, including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.

(3) Costs associated with reopening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures.

(4) Costs associated with complying with COVID-19 federal, state, or local guidelines for reopening with required safety protocols, including, but not limited to, equipment, plexiglass barriers, outdoor dining, personal protective equipment (PPE) supplies, testing, and employee training expenses.

(5) Any other COVID-19-related expenses not already covered through grants, forgivable loans, or other relief through federal, state, county, or city programs.

(h) Applicants may self-identify race, gender, and ethnicity. Within seven business days of the close of each application period, the office shall post the aggregate data, as available. Within 15 business days of the close of each application period, the office shall post data by county and legislative district, as available. Within 45 business days, the office shall post the actual awarded information, as available. All information shall be posted on the Governor’s Office of Business and Economic Development (GO-Biz) internet website and GO-Biz shall provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature.

(i) The fiscal agent shall issue Forms 1099 and otherwise adhere to tax reporting guidelines regardless of whether the grants are excluded from gross income for purposes of the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) or the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code).

(j) This section shall remain in effect only until December 31, 2022, and as of that date is repealed.

SEC. 17.

Section 12100.83.6 is added to the Government Code, to read:

12100.83.6.

(a) The California Nonprofit Performing Arts Grant Program is hereby created within CalOSBA.

(b) The program shall be under the direct authority of the director.

(c) The purpose of the program is to provide grants to eligible nonprofit performing arts organizations to encourage workforce development.

(d) The office may contract with a fiscal agent, or amend an existing contract with a fiscal agent to meet the requirements of this section, to carry out the program, at a rate of no more than 5 percent of administrative and program funds appropriated by the Legislature for the purposes of this section.

(e) Subject to appropriation by the Legislature, the office shall allocate grants to eligible nonprofit performing arts organizations that meet the requirements of this section.

(f) (1) Subject to appropriation by the Legislature, fifty million dollars ($50,000,000) of program funds shall be allocated in one or more rounds to eligible nonprofit performing arts organizations.

(2) For purposes of this subdivision, an “eligible nonprofit performing arts organization” means a registered 501(c)(3) nonprofit entity that satisfies the criteria for a qualified small business pursuant to subdivision (f) of Section 12100.82, with no more than two million dollars ($2,000,000) in annual gross revenue, and that is in one of the following North American Industry Classification System codes:

(A) 711110 - Theater Companies and Dinner Theaters.

(B) 711120 - Dance Companies.

(D) 711190 - Other Performing Arts Companies.

(3) Grants under this subdivision shall be awarded on a first-come, first-served basis in the following amounts:

(A) Twenty-five thousand dollars ($25,000) for applicants with annual gross revenue greater than one thousand dollars ($1,000) to one hundred thousand dollars ($100,000) in the 2019 taxable year.

(B) Fifty thousand dollars ($50,000) for applicants with annual gross revenue greater than one hundred thousand dollars ($100,000), and up to one million dollars ($1,000,000) in the 2019 taxable year.

(C) Seventy-five thousand dollars ($75,000) for applicants with annual gross revenue greater than one million dollars ($1,000,000), and up to two million dollars ($2,000,000) in the 2019 taxable year.

(g) Grant moneys awarded under this section shall only be used for the following:

(1) Employee expenses, including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.

(2) Contributions or payments to a centralized payroll service.

(3) Recruitment, training, development, and other human resources related expenses.

(4) Other operating expenses or equipment for employees.

(h) (1) Applicants may self-identify race, gender, and ethnicity. Within seven business days of the close of each application period, the office shall post the aggregate data, as available. Within 15 business days of the close of each application period, the office shall post data by legislative district, as available. Within 45 business days, the office shall post the actual awarded information, as available. All information shall be posted on the internet website of the Governor’s Office of Business and Economic Development (GO-Biz) and GO-Biz shall provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature.

(2) The office shall report to the Legislature the number of grants and dollar amounts awarded for each of the following categories:

(A) Race and ethnicity.

(B) Women-owned.

(D) Located in or serve a disadvantaged community as described in paragraph (5) of subdivision (h) of Section 12100.83.

(E) Located in a rural area.

(F) County.

(G) State Senate district.

(H) State Assembly district.

(I) Geography.

(i) The fiscal agent shall issue Form 1099 and otherwise adhere to tax reporting guidelines regardless of whether the grants are excluded from gross income for purposes of the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) or the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code).

(j) This section shall remain in effect only until December 31, 2022, and as of that date is repealed.

SEC. 18.

Article 9 (commencing with Section 12100.90) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article 9. California Microbusiness COVID-19 Relief Grant Program

12100.90.

For purposes of this article, all of the following shall apply:

(a) “CalOSBA” or “office” means the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development.

(b) “Program” means the California Microbusiness COVID-19 Relief Grant Program established pursuant to this article.

(c) “California Small Business COVID-19 Relief Grant Program” means the grant program established pursuant to Section 12100.83.

(d) “Eligible grantmaking entity” means a county, or if a county applicant is not available, a consortium of nonprofit community-based organizations, exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, with a mission that includes economic or business development support for California’s underserved businesses and entrepreneurs.

(e) “Fiscal agent” means the eligible grantmaking entity or a designated representative of the eligible grantmaking entity selected by the office from among eligible grantmaking entities to administer the California Microbusiness COVID-19 Relief Program funds in a county.

(f) “Grantmaking agreement” means the required cooperative agreement between the office and fiscal agent which includes the duties and responsibilities of the fiscal agent in carrying out the purpose of the article.

(g) “Qualified microbusiness” means an entity that meets and self-certifies, under penalty of perjury, all of the following criteria:

(1) The microbusiness began its operation prior to December 31, 2019.

(2) The microbusiness is currently active and operating, or has a clear plan to reopen when the state permits reopening of the business.

(3) The microbusiness was significantly impacted by COVID-19 pandemic.

(4) The microbusiness had less than fifty thousand dollars ($50,000) in revenues in the 2019 taxable year.

(5) The microbusiness currently has fewer than five full-time equivalent employees and had fewer than five full-time equivalent employees in the 2019 and 2020 taxable years.

(6) The microbusiness is not a business excluded from participation in the California Small Business COVID-19 Relief Grant Program, as specified in paragraph (2) of subdivision (f) of Section 12100.82.

(h) “Qualified microbusiness owner” means an individual that meets and self-certifies, under penalty of perjury, all of the following criteria:

(1) The microbusiness owner is the majority-owner and manager of the qualified microbusiness.

(2) The microbusiness owner’s primary means of income in the 2019 taxable year was the qualified microbusiness.

(3) The microbusiness owner did not receive a grant under the California Small Business COVID-19 Relief Grant Program.

(4) The microbusiness owner can demonstrate their eligibility as a “qualified microbusiness owner” by providing the fiscal agent with a government issued photo identification (state, domestic, or foreign), and documentation that includes the owner’s name and may include, but is not limited to, the following:

(A) A local business permit or license.

(B) A bank statement.

12100.91.

Subject to appropriation by the Legislature, the following shall apply:

(a) The office may use up to 0.5 percent of funds for administrative expenses. A grantmaking entity may use up to 20 percent of its allocation for administrative expenses (including fiscal agent fee), marketing, and outreach to qualified microbusiness owners in underserved business groups, including businesses owned by women, minorities, veterans, individuals without documentation, individuals with limited English proficiency, and business owners located in low-wealth and rural communities.

(b) Any unused money by the grantmaking entity, less that 20 percent administrative expenses, outreach and marketing funds, must be transferred back to the office by December 30, 2022.

12100.92.

The office shall do all of the following:

(a) Administer a Request for Proposal (RFP) in no more than two open rounds, for a period of no more than 60 days per round, for eligible grantmaking entities.

(1) First round will be open to all 58 county governments as eligible grantmaking entities.

(2) Second round will be open to remaining county governments that did not apply in the first round, and open to nonprofits as eligible grantmaking entities.

(b) Subject to appropriation by the Legislature, allocate funding to one fiscal agent per county as a per capita percentage of available funding, based on the county’s estimated population on January 1, 2021, as determined by the Department of Finance.

(c) Develop processes and requirements for monitoring, tracking, and reporting on the use of these funds by the office and each fiscal agent.

(d) Establish criteria to be used to select one fiscal agent per county from among the eligible grantmaking entities. These criteria shall include, but are not limited to, all of the following:

(1) Demonstrated operational experience and organizational capacity to serve one county, or in the case of a consortium of nonprofits, one or more counties, of the state, consistent with the requirements of this article.

(2) Demonstrated preexisting relationships with the county’s microbusiness community.

(3) Identified key outreach activities for the specific county they will serve, aimed at identifying underserved small business groups that have faced historic barriers to accessing capital, including businesses majority owned and operated on a daily basis by women, minorities or persons of color, veterans, undocumented individuals, and individuals living in rural or low-wealth areas on low incomes.

(4) Prioritization for eligible grantmaking entities that are qualified and experienced in administering similar programs.

(5) Prioritization for eligible grantmaking entities that commit to working with nonprofit organizations with a mission that includes economic or business development support for California’s underserved businesses and entrepreneurs.

(e) The office shall enter into a grantmaking agreement with each fiscal agent selected to implement the program. The grantmaking agreement shall identify the duties and responsibilities of the fiscal agent and the grantmaking entity in carrying out the purposes of this article. The grantmaking agreement shall identify the county the fiscal agent is required to serve, the fiscal controls that will be applied during the program term, a commitment that outreach and marketing to underserved business groups and business owners located in low-wealth and rural areas, as appropriate, will be undertaken, and the tracking and reporting requirements related to outreach and technical assistance activities, applications received, and microbusiness grants awarded. The office may provide additional guidance and requirements in the grantmaking agreement to ensure the requirements and purposes of this article are met.

12100.93.

(a) Subject to appropriation by the Legislature, a grantmaking entity that receives an allocation shall administer a county program that includes all of the following:

(1) The development and implementation of an outreach and marketing plan to identify and engage eligible microbusiness that face systemic barriers to accessing capital, including, but not limited to, businesses owned by women, minorities, veterans, individuals without documentation, individuals with limited English proficiency, and business owners located in low-wealth and rural communities. The office shall review the plan and may make recommendations for additional measures or modifications to the plan.

(2) Individual grant awards to qualified microbusinesses shall be two thousand five hundred dollars ($2,500).

(3) The grantmaking entity shall accept applications for a period of at least four weeks.

(4) The grantmaking entity shall prioritize outreach efforts to qualified microbusinesses which meet one or both of the following criteria:

(A) The owner of the microbusiness is a member of a group that has faced historic barriers in accessing capital, and is defined as business majority owned and operated on a daily basis by women, minorities or persons of color, veterans, undocumented individuals, and individuals living in low-wealth or rural areas on low incomes.

(B) The microbusiness has suffered economic impacts or revenue losses due to the COVID-19 pandemic, as determined by the fiscal agent.

(5) A grantmaking entity may, in addition to the priorities in paragraph (4), prioritize applications from qualified microbusinesses that are sidewalk vendors.

(6) The grantmaking entity shall request, but shall not mandate, each microbusiness applying for a grant to self-identify the race, gender, and ethnicity of its owner.

(7) The grantmaking entity shall require a microbusiness owner who is a recipient of a grant pursuant to this article to self-certify that grant funds will be used for one or more of the following eligible uses:

(A) The purchase of new certified equipment including, but not limited to, a cart.

(B) Investment in working capital.

(C) Application for, or renewal of, a local permit including, but not limited to, a permit to operate as a sidewalk vendor.

(D) Payment of business debt accrued due to the COVID-19 pandemic.

(E) Costs resulting from the COVID-19 pandemic and related health and safety restrictions, or business interruptions or closures incurred as a result of the COVID-19 pandemic, as defined in subdivision (l) of Section 12100.83.

(b) For purposes of implementing the program, a person or entity shall not seek information that is unnecessary to determine eligibility, including whether the individual is an undocumented immigrant. Information, including documents, collected from a microbusiness applying to or participating in the program shall not constitute a record subject to disclosure under Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1.

(c) The fiscal agent and grantmaking entity shall separately track and report funding used for the administration and marketing of the county program pursuant to subdivision (d) of Section 12100.92.

(d) The grantmaking entity shall provide the office with aggregate-level data necessary to meet the reporting requirements of this article, as the requirements relate to the county designated in the grantmaking agreement.

(e) The fiscal agent and grantmaking entity shall provide the office, at minimum, two narrative reports during and after the awards process.

(f) The office shall provide a periodic update on the use of the funds awarded pursuant to Section 12100.92, in accordance with the following:

(1) The first report shall be made within 15 days of the funds being awarded and shall identify the fiscal agents who were awarded funding, how much each fiscal agent received, key outreach activities committed to in each grantmaking agreement, and the county served.

(2) The second report shall be made within 120 days of the funds being awarded. The office shall report every 60 days following the second report until all funds allocated to each county have been awarded.

(3) The office shall post each report on its internet website and provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature.

(4) The second and subsequent reports shall identify by county, the number of applications received, the number of grant awards made, the outreach and technical assistance provided, and other information determined by the office as appropriate and necessary. The second and subsequent reports shall, to the extent that the information is available, include the number of applications, grant awards, and the dollar amounts awarded for each county in each of the following categories:

(A) Race and ethnicity.

(B) Women owned.

(D) Located in a rural area.

(E) County.

12100.94.

The office may adopt regulations to implement this article. The rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the office pursuant to this article.

12100.95.

This article shall remain in effect only until December 31, 2022, and as of that date is repealed.

SEC. 19.

Section 13995.44 of the Government Code is amended to read:

13995.44.

(a) (1) The commission shall annually provide to all assessed businesses, the chairperson of the Joint Legislative Budget Committee, and the chairpersons of the Assembly Committee on Budget and the Senate Committee on Budget and Fiscal Review a report on the activities and budget of the commission including, but not limited to, income and expenses, the fund balance, a summary of the tourism marketing plan, and a report of progress in achieving the goals set forth in the plan. The portions of the report that pertain to the commission’s income and expenses and the fund balance, as well as those other portions that the commission may from time to time deem appropriate, shall be audited by independent accountants retained by the commission for this purpose. The commission shall also annually post the report on its internet website.

(2) The commission’s annual budget shall be subject to the review and approval of the director. However, any decision of the director related to the budget may be overridden by a vote of three-fifths or more of the commissioners then in office.

(b) The commission shall maintain a report on the percentage assessment allocation between industry categories and industry segments. The report shall also specify the reasons and methodology used for the allocations. This report shall be updated every time the assessment allocations are amended. The report shall be made available to any assessed business.

SEC. 20.

Section 17158.1 is added to the Revenue and Taxation Code, to read:

17158.1.

For taxable years beginning on or after January 1, 2020, and before January 1, 2023, gross income does not include grant allocations received by a taxpayer pursuant to the California Microbusiness COVID-19 Relief Program that is administered by the Office of Small Business Advocate pursuant to Article 9 (commencing with Section 12100.90) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code.

SEC. 21.

Section 18410.2 of the Revenue and Taxation Code is amended to read:

18410.2.

(a) The California Competes Tax Credit Committee is hereby established. The committee shall consist of the Treasurer, the Director of Finance, and the Director of the Governor’s Office of Business and Economic Development, who shall serve as chair of the committee, or their designated representatives, and one appointee each by the Speaker of the Assembly and the Senate Committee on Rules. A Member of the Legislature shall not be appointed.

(b) For purposes of Article 4.4 (commencing with Section 12096.6) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code and Sections 17059.2 and 23689, the California Competes Tax Credit Committee shall do all of the following:

(1) Approve or reject any written agreement for a tax credit or grant allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the fully executed written agreement between the taxpayer and the Governor’s Office of Business and Economic Development.

(2) Approve or reject any recommendation to recapture, in whole or in part, a tax credit or grant allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the recommendation from the Governor’s Office of Business and Economic Development pursuant to the terms of the fully executed written agreement.

(c) For purposes of Article 4.4 (commencing with Section 12096.6) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code and Sections 17059.2 and 23689, the Governor’s Office of Business and Economic Development shall provide a member of the committee, or their designated representatives, listed in subdivision (a), upon request of that member, with any information necessary to fulfill their duties or otherwise comply with the requirements of this section. Nothing in this subdivision shall be construed to require the Governor’s Office of Business and Economic Development to provide information to the member or their designated representative that the applicant considers to be a trade secret, confidential, privileged, or otherwise exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).

SEC. 22.

Article 8 (commencing with Section 19292) is added to Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:

Article 8. Collection of Recaptured California Competes Grants

19292.

For purposes of this article, all of the following definitions apply:

(a) “California Competes Grant Program” means the program that authorizes the grants allowed under Article 4.4 (commencing with Section 12096.6) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code.

(b) “Committee” means the California Competes Tax Credit Committee established in Section 18410.2.

(d) “Qualified grantee” means an applicant for grants the California Competes Grant Program that satisfies the requirements of subdivision (b) of Section 12096.6.1 of the Government Code.

(e) “Recaptured grant amount” shall mean the amount identified in any recommendation for recapture of a grant approved, in whole or in part, by the committee pursuant to the California Competes Grant Program and Section 18410.2 of this code.

19293.

(a) GO-Biz shall provide to the Franchise Tax Board a list of qualified grantees and their respective recaptured grant amounts as approved, in whole or in part, by the committee pursuant to Section 18410.2 for collection.

(b) Any recaptured grant amount shall be treated as final and due and payable to the State of California, and shall be collected from the qualified grantee by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes, and any overpayment of any liability imposed under this part or, Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) shall be credited against any balance due pursuant to this section.

(c) The Controller may, in the Controller’s discretion, offset any amount due a qualified grantee by a state agency against any recaptured grant amount pursuant to Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code.

(d) This part and Part 10 (commencing with Section 17001), Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts provided to the Franchise Tax Board under this section in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article.

(e) For amounts that GO-Biz provided to the Franchise Tax Board for collection under subdivision (a), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the qualified grantee and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice.

(f) Any information, information sources, or enforcement remedies and capabilities available to GO-Biz or the state with respect to the recaptured grant amount described in subdivision (a) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board.

(g) The activities required to implement and administer this article shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001), this part, and Part 11 (commencing with Section 23001).

(h) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) of Division 2 this code.

19294.

(a) The Franchise Tax Board and GO-Biz may prescribe regulations as necessary or appropriate to carry out the purposes of this article.

(b) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of the Government Code) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board or GO-Biz pursuant to this article.

(c) Except as provided in this article, Section 19542 shall apply to all information obtained by the Franchise Tax Board and GO-Biz for the purpose of administering the California Competes Grant Program.

(d) Notwithstanding Section 19542, the Franchise Tax Board may disclose information to GO-Biz and GO-Biz may disclose information to the Franchise Tax Board to facilitate the collection of recaptured grant amounts under this article.

SEC. 23.

The Legislature finds and declares that Section 12 of this act, which amends Section 12100.63 of, and Section 18 of this act, which adds Section 12100.93 to, the Government Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

The restrictions on information prescribed in Sections 12100.63 and 12100.93 of the Government Code strike the appropriate balance between the public’s right to access information about the conduct of their government agencies and the need to protect the personal information of the private individuals participating in the California Dream Fund Program and the California Microbusiness COVID-19 Relief Program.

SEC. 24.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 25.

The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 26.

This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.

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Bill Text: CA SB151 | 2021-2022 | Regular Session | Enrolled

California Senate Bill 151 (Prior Session Legislation)

LEGISLATIVE COUNSEL'S DIGEST

Digest Key

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Article 4.4. California Competes Grant Program

12096.6.

12096.6.1.

12096.6.2.

12096.6.4.

12096.6.5.

12096.6.6.

SEC. 2.

SEC. 3.

12099.1.

SEC. 4.

12099.2.

SEC. 5.

12099.3.

SEC. 6.

12099.4.

SEC. 7.

12099.5.

SEC. 8.

12099.6.

SEC. 9.

12099.7.

SEC. 10.

12100.61.

SEC. 11.

12100.62.

SEC. 12.

12100.63.

SEC. 13.

12100.65.

SEC. 14.

12100.67.

SEC. 15.

12100.83.

SEC. 16.

12100.83.5.

SEC. 17.

12100.83.6.

SEC. 18.

Article 9. California Microbusiness COVID-19 Relief Grant Program

12100.90.

12100.91.

12100.92.

12100.93.

12100.94.

12100.95.

SEC. 19.

13995.44.

SEC. 20.

17158.1.

SEC. 21.

18410.2.

SEC. 22.

Article 8. Collection of Recaptured California Competes Grants

19292.

19293.

19294.

SEC. 23.

SEC. 24.

SEC. 25.

SEC. 26.

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