12100.82.

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

(a) “Applicant” means any California taxpayer, including, but not limited to, an individual, corporation, nonprofit organization, cooperative, or partnership, who submits an application for the program.

(b) “California Small Business COVID-19 Relief Grant Program” or “program” means the grant program established in Section 12100.83.

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

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

(e) “Fiscal agent” means a California-based Community Development Financial Institution (CDFI) capable of online and mobile application development, customer support, document validation, impact analysis, grant agreements, and awards disbursement, as well as marketing, engagement, and strategic partnerships with a network of CDFIs and nonprofits for implementation.

(f) “Fiscal sponsorship” means an existing nonprofit offering to provide its tax exemption and associated benefits to another group, such as a charitable project.

(g) (1) “Qualified small business” means a business or nonprofit that meets all of the following criteria, as confirmed by the office or fiscal agent through review of revenue declines, other relief funds received, credit history, tax returns, and bank account validation:

(A) Is one of the following:

(i) A sole proprietor, independent contractor, 1099 employee, C-corporation, S-corporation, cooperative, limited liability company, partnership, or limited partnership, with an annual gross revenue of less than five million dollars ($5,000,000), but greater than one thousand dollars ($1,000), in the 2019 taxable year.

(ii) A registered 501(c)(3), 501(c)(6), or 501(c)(19) nonprofit entity that had an annual gross revenue of less than five million dollars ($5,000,000), but greater than one thousand dollars ($1,000), in the 2019 taxable year.

(iii) A division or department of a larger organization or entity, such as a tribal government, city, county, or city and county.

(iv) An organization that is fiscally sponsored by a nonprofit corporation.

(B) Began operating in the state prior to June 1, 2019.

(C) Is currently active and operating, or has a clear plan to reopen when the state permits reopening of the business.

(D) Has been impacted by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic.

(E) Provides organizing documents, such as a 2019 tax return or Form 990, an affidavit from the board or authorizing official from the governing authority, detailing the governance structure; or a copy of an official filing with the Secretary of State or with the local municipality, as applicable, including, but not limited to, Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or Government-Issued Business License.

(F) Provides an acceptable form of government-issued photo identification, where applicable.

(2) Notwithstanding paragraph (1), “qualified small business” shall not include any of the following:

(A) Businesses without a physical presence in the state and not headquartered in the state.

(B) Businesses primarily engaged in political or lobbying activities, regardless of whether the entity is registered as a 501(c)(3), 501(c)(6), or 501(c)(19).

(C) Passive businesses, investment companies, and investors who file a Schedule E on their tax returns.

(D) Financial institutions or businesses primarily engaged in the business of lending, such as banks, finance companies, and factoring companies.

(E) Businesses engaged in any activity that is unlawful under federal, state, or local law.

(F) Businesses that restrict patronage for any reason other than capacity.

(G) Speculative businesses.

(H) Businesses with any owner of greater than 10 percent of the equity interest in it who meets one or more of the following criteria:

(i) The owner has, within the prior three years, been convicted of or had a civil judgment rendered against the owner, or has had commenced any form of parole or probation, including probation before judgment, for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract under a public transaction, violation of federal or state antitrust or procurement statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property.

(ii) The owner is presently indicted for or otherwise criminally or civilly charged by a federal, state, or local government entity, with commission of any of the offenses enumerated in clause (i).

(I) Affiliated companies, as defined in Section 121.103 of Title 13 of the Code of Federal Regulations.

(J) Other businesses determined by the office, consistent with the limitations and exclusions set in Rounds 1 and 2 of the COVID-19 Relief Grant Program.

(h) “Rounds 1 and 2 of the COVID-19 Relief Grant Program” means the first two rounds of grant allocations awarded, prior to the enactment of this article, through the COVID-19 Relief Grant that is administered by CalOSBA and that is funded by Executive Order No. E 20/21-182.

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.

(C) 72 – Accommodation and Food Services.

(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 five million dollars ($5,000,000), 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)  All remaining funds from the original allocation of fifty million dollars ($50,000,000) of program funds for eligible nonprofit cultural institutions, including those associated with educational institutions, shall be allocated in one or more rounds to eligible nonprofit cultural institutions.

(2) Required verifying documentation: Form 990 verification, signed affidavit from governing body, or fiscal sponsor agreement to validate entities.

(3) For purposes of this subdivision, “eligible nonprofit cultural institution” means a nonprofit entity that is organized primarily for the purpose of producing, promoting, or presenting the arts, history, heritage, or humanities to the public; or, organized for identifying, documenting, interpreting, and preserving cultural resources and that satisfies the criteria for a qualified small business applicant pursuant to subdivision (g) of Section 12100.82.

(4) (A)  The office shall not regrant funding to repeat eligible nonprofit cultural institution awardees unless the program is under subscribed and all entities seeking a first-time grant have been awarded.

(B)  Pursuant to subparagraph (A), the office shall:

(C) 711120 - Dance Companies.

(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.</p>

(i)  Prioritize grants to repeat eligible nonprofit cultural institution awardees based on documented percentage revenue declines that are based on a reporting period comparing 2020 versus 2019.

(ii) Prioritize organizations with the largest operating losses relative to their budget and past performance.

(5) Eligible nonprofit cultural institutions include theater companies, dance companies, musical groups, symphony and opera companies, performing arts companies, arts & education organizations, art and history museums, historical sites, historical societies, zoos, aquariums, science centers, children’s museums, botanical gardens, nature parks, and cultural centers.

(6)  The office shall give the first priority of grant awards to nonprofit cultural institutions that did not previously receive a grant from the California Small Business COVID-19 Relief Grant Program.

(7) Grants shall be awarded to an eligible nonprofit cultural institution under this subdivision even if the eligible nonprofit cultural institution has otherwise been awarded a grant under subdivision (i).

(8) 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.

(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) 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, or 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 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.

(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.

(C) Veteran-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.

(K) Nonprofit 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).

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.

(C) Engages one or more individuals to carry out not less than two of the following roles:

(i) A sound engineer.

(ii) A booker.

(iii) A promoter.

(iv) A stage manager.

(v) Security personnel.

(vi) A box office manager.

(D) Is one of the three highest revenue grossing entities, locations, or franchises associated with the applicant.

(E) 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 (NAICS) codes, clauses (i) to (xiv), inclusive, or National Taxonomy of Exempt Entities (NTEE) codes, clauses (xv) to (xxxi), inclusive:

(i) 512131 - Motion Picture Theaters (except Drive-Ins).

(ii) (I) 512132 - Drive-In Motion Picture Theaters.

(II) An entity that qualifies under this clause shall be an authentic drive-in motion picture theater. For purposes of this clause, “authentic drive-in motion picture theater” means a permanently constructed commercial motion picture drive-in theater of which the main purpose of the property is the outdoor exhibition of motion pictures for patrons in vehicles using professional Digital Cinema Initiatives (DCI) compliant digital projectors or 35mm or 70mm film.

(iii) 7111 – Performing Arts Companies.

(iv) 711110 - Theater Companies and Dinner Theaters.

(v) 711120 – Dance Companies.

(vi) 711130 – Musical Groups and Artists.

(vii) 711211 – Sports Teams and Clubs.

(viii) 7113 - Promoters of Performing Arts, Sports, and Similar Events.

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

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

(xi) 7139 – Other Amusement and Recreation Industries.

(xii) 713990 – All Other Amusement and Recreation.

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

(xiv) 722511 – Full-Service Restaurants.

(xv) A20 – Arts, Cultural Organizations - Multipurpose.

(xvi) A23 – Cultural, Ethnic Awareness.

(xvii) A25 – Arts Education.

(xviii) A50 – Museums.

(xix) A54 – History Museums.

(xx) A56 – Natural History, Natural Science Museums.

(xxi) A60 – Performing Arts Organizations.

(xxii) A61 – Performing Arts Centers.

(xxiii) A62 – Dance.

(xxiv) A63 – Ballet.

(xxv) A65 – Theater.

(xxvi) A68 – Music.

(xxvii) A69 – Symphony Orchestras.

(xxviii) A6A – Opera.

(xxix) A6B – Singing, Choral.

(xxx) A6C – Music Groups, Bands, Ensembles.

(xxxi) A90 – Arts Service Organizations and Activities.

(C) Is any of the following:

(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 30 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.

(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.

(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.

(C) Generates less than 75 percent of its gross earned revenue in California.

(D) Demonstrates a percentage gross earned revenue decline in California of less than 30 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 (3), 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.

(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, 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.

(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.

(h) Applicants may self-identify race, gender, and ethnicity. Within 30 business days of the close of each application period, the office shall post the aggregate data, as available, and 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 Office of Small Business Advocate (CalOSBA) internet website and CalOSBA 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.

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, forty-nine million five hundred thousand dollars ($49,500,000) 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.

(C) 711130 - Musical Groups and Artists.

(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.

(4) A registered 501(c)(3) nonprofit entity, without regard to its annual gross revenue, may be eligible for funds if it serves as a fiscal sponsor for entities that are qualified small businesses 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.

(C) 711130 - Musical Groups and Artists.

(D) 711190 - Other Performing Arts Companies.

(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 Office of Small Business Advocate (CalOSBA) and CalOSBA 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.

(C) Veteran-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 June 30, 2023, and as of that date is repealed.

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 June 29, 2023.

12100.95.

 This article shall remain in effect only until June 30, 2023, and as of that date is repealed.

12100.120.

 This article shall be known and may be cited as the Local Government Budget Sustainability Fund.

12100.121.

 All efforts funded under this article are intended to support and be aligned with other initiatives in the State of California to support economic and workforce diversification, including, but not limited to, the Community Economic Resilience Fund. This article is intended to focus on providing project support for county governments in areas of the state facing high unemployment and high poverty that demonstrate a commitment to advancing a more climate-resilient local economy and pursuing economic diversification initiatives and projects that will provide opportunities for revenue stability. Funds provided under this article are intended to enable county governments to pursue a range of projects that have the potential to diversify their industry presence and create high road jobs, while creating additional potential sources of county revenues over time.

12100.122.

 (a) The Local Government Budget Sustainability Fund is hereby created within the Governor’s Office of Business and Economic Development. Upon appropriation, moneys in the fund shall be available for purposes of this article.

(b) The purpose of the program is to provide grants on a competitive basis to local entities that meet the requirements of the article and, when possible, prioritizing those that have the ability to leverage projects that are affiliated with a federal, state, or local program. The success of each grant shall be evaluated on a project-specific basis.

(c) Grants shall be awarded to eligible local entities through at least one round of grants per fiscal year.

(d) The Governor’s Office of Business and Economic Development shall develop, in consultation with other state agencies and departments, criteria for the selection of grant recipients, which shall include, but not be limited to, all of the following:

(1) Applicants shall be limited to county governments in high-unemployment and high-poverty areas. For purposes of this grant program, high-unemployment and high-poverty areas are defined as geographic areas with a poverty rate or geographic rate that is 150 percent of the California statewide poverty rate, per the most recently updated data available from the United States Census Bureau’s American Community Survey 5-Year Estimates on or after January 1, 2022. Counties within geographic areas that fall under the high-unemployment and high-poverty designation as of July 1, 2022 are eligible for the duration of the program. Counties within geographic areas that fall under either the high-unemployment or high-poverty designations as of July 1, 2022, shall be eligible for the program if moneys are available following rounds designated for applicants that are county governments in high-unemployment and high-poverty areas.

(2) Applicants shall be participants in their region’s respective Community Economic Resilience Fund planning table.

(3) Applicants shall explain current challenges to local revenue sustainability for the next six years, and specifically challenges that pose a risk to the ability of applicants to continue existing government services.

(4) Applicants shall explain how funding secured from this program will be used for specific staffing needs to facilitate project identification, execution, construction, and implementation.

(5) Applicants shall explain how funding secured from this program will be used to support its ability to pursue projects that would advance one of the following five categories:

(A) Process improvement projects, which are defined as permit streamlining, inspections and siting review streamlining, business and community resource toolkits, or technological improvement and modernization, among others.

(B) Economic diversification and stability projects, such as those included in existing Comprehensive Economic Development Strategies, other regional economic development strategies, projects identified and prioritized by the regional high road transition collaboratives, which are defined as construction and nonconstruction opportunities aimed at new and emerging industry clusters that leverage workforce transition and skills generation, additional General Fund revenue sources, or construction and nonconstruction efforts to create new climate related accelerators or incubators and investment centers. Nonconstruction includes research, planning, strategic development and other predevelopment related expenses. Construction includes materials, labor, acquisition and final construction and other related activities.

(C) Workforce development projects, which are defined as construction and nonconstruction opportunities for new and existing workforce programs that will provide training, upskilling, or reskilling and can provide additional support services for participants specifically tied to economic diversification and stability opportunities.

(D) Existing process improvement, economic diversification and stability, and workforce development projects, as described in subparagraphs (A) to (C), inclusive, which have defined awards from federal agencies and include local jurisdiction matching funds requirements. Projects with a clear nexus to projects described in subparagraphs (A) to (C), inclusive, shall be considered.

(E) (i) Project identification and planning resources.

(ii) “Project identification and planning resources” means moneys intended to build staff specifically designed for staffing increases for the recognized economic development departments within the eligible counties to perform the actions required by this article, including for purposes of identifying, defining, applying for grants for, developing a Comprehensive Economic Development Strategy, as described in Section 303.7 of Title 13 of the Code of Federal Regulations, and developing projects described in subparagraphs (A) to (C), inclusive.

(iii) Funding provided pursuant to this subparagraph shall not exceed three million dollars ($3,000,000) in total to all applicants over the duration of the program.

(iv) A request made pursuant to this subparagraph shall include information on the applicable job requirements and skills needed to identify, propose, define, apply for grants for, and develop projects associated with subparagraphs (A) to (C), inclusive.

(6) If an applicant applies to receive funding pursuant to subparagraph (A), (B), or (C) of paragraph (5), the applicant shall provide details pertaining to projects that would be supported with these funds, including, but not limited to, budget, staffing, contracting, materials, equipment, and other expenses.

(7) Applicants shall include information pertaining to how projects are attributive to climate-resilience.

(8) Applicants shall agree to initiation meetings with office staff for resource identification, project scoping, industry engagement, regulatory agency engagement, other planning, and alignment with administration priorities.

(9) (A) Applicants shall be encouraged to utilize funds as match funding to other established state, federal, philanthropic, or other grant opportunities. Projects including a federal, local, or philanthropic match shall be prioritized by the Governor’s Office of Business and Economic Development.

(B) Applicants shall engage with the Governor’s Office of Business and Economic Development during development, and prior to, submission of an application that includes a local match. For projects where the local match funding requirements exceed the funding capacity of the program, the excess requirements shall be funded by the local jurisdiction providing the associated local match.

(C) Applicants shall provide detailed information, if they have match funding, on the matching funds available, in-kind matching funds budget details, grant application and submission details, grant award notices, and any other information that indicates the applicant’s receipt of match funding.

(10) Applicants shall provide a detailed assessment of the staffing requirements related to project applicants, including, but not limited to, duties and responsibilities, salary and benefits, working titles, reporting structure, and duration.

(11) Applicants shall include countywide government employment data as a part of an application.

(e) Grant recipients shall meet with the office periodically, at least bimonthly, to ensure projects are meeting specified benchmarks associated with climate resilience, business services process improvement, economic diversification, and long-term economic stability. If key indicators of progress are not being met, the office may take actions to terminate the grant agreement and have unspent dollars allocated to the project returned. The office may require reimbursement for allocated dollars that have been spent if it determines dollars have been spent improperly or in a manner that is outside the scope of the agreement.

(f) The office shall report to the Legislature each calendar year the number of grants and dollar amounts by local entity. The report shall be submitted in compliance with Section 9795.

12100.123.

 The office shall evaluate and prioritize grants, to the extent permissible under state and federal equal protection laws, in accordance with the following criteria:

(a) Assessment of proposal details submitted, including, but not limited to, budget information, staffing requirements, positions, project goals, timeliness, and, if applicable, industry partners, workforce and labor partners, trade associations, and local businesses.

(b) Assessment of coalition-building capacity, as evidenced by letters of support that speak to the potential community benefit of projects from labor, business, community, city government, and other stakeholders, including, but not limited to, economic development, philanthropy, education, and workforce partners.

(c) Other qualitative and quantitative measures determined by the specific project or grant application utilizing these funds for required match funding.

12100.124.

 Eligible activities for grant funds shall include, but are not limited to, all of the following:

(a) Staffing requirements, position classifications, and wages. Salary increases outside the scope of bargaining agreements are explicitly prohibited from utilizing these funds.

(b) Project costs including, but not limited to, budget, staffing, contracting, consulting, materials, equipment, and other expenses.

(c) Match funding for other federal, state, philanthropic, or other grant opportunities with a required match. Programs without a match requirement that have specific scoring improvement through match funding shall be prioritized.

12100.125.

 This article shall remain in effect until June 30, 2028, and as of that date is repealed.

12100.130.

 For purposes of this article, the following terms have the following meanings:

(a) “Applicant” means any port in California with container terminals that specialize in handling goods transported in intermodal shipping containers and provides details on demonstrated data system needs plans for using grant funds to support cloud-based data system development.

(b) “Interoperability” means the ability for a port’s computerized and cloud-based data systems to securely share information and expedite information exchange across port users and relevant transportation service providers, including other port or public sector-based, computerized, and cloud-based cargo data systems as needed, in support of operational improvement, efficiency, and emissions reduction.

12100.131.

 (a) Upon appropriation by the Legislature, GO-Biz shall establish the California Containerized Ports Interoperability 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 award grants and determine grant amounts based on the following criteria:

(1) (A) The applicant agrees to reach a memorandum of understanding (MOU) with all other grantees on or before May 1, 2023, that defines how they will work to help achieve real-time interoperability among the containerized ports in California. GO-Biz shall withhold the disbursement of one-half of each successful applicant’s grant funding until after an MOU is reached. No later than 30 days after an MOU has been reached, GO-Biz shall report to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee that a port data interoperability agreement has been reached.

(B) Notwithstanding any other law, if an individual applicant does not reach a Memorandum of Understanding with all other grantees by May 1, 2023, the applicant shall return the funds to GO-Biz and GO-Biz shall revert the funds to the General Fund.

(2) Grant funding allocations to each applicant shall be considered based on demonstrated data system needs and key performance metrics, including, but not limited to, historical container volumes.

(3) Grant funding shall not be used by a grantee to support a system that would, in any way, track or monitor labor, including, but not limited to, productivity metrics, or a system that would infringe on a collective bargaining agreement or workers’ right to collectively bargain.

(c) Grant funding shall only be used to support operations of computerized and cloud-based data systems that are necessary to achieve interoperability.

(d) (1) On or before January 1, 2024, GO-Biz shall report to the Legislature, pursuant to Section 9795, information on awarded grants, a project description of each grant award, available information on data system enhancements or other project outcomes, and the implementation status of the MOU.

(2) On or before January 1, 2026, GO-Biz shall provide a final report to the Legislature, pursuant to Section 9795, describing the final results of the program.

(e)  This article shall remain in effect only until January 1, 2026, and as of that date is repealed.

12100.140.

 The Local Government Immigrant Integration Initiative is hereby created within GO-Biz.

12100.141.

 (a) Upon appropriation by the Legislature, GO-Biz shall administer competitive grants to local governments to develop or expand local immigrant integration initiatives.

(b) Applications shall include the following grant criteria:

(1) A description of the proposed activities and how they will advance immigrant integration through locally administered public programs that advance quality of life (health, social services, housing, civic participation services), and economic mobility (education, workforce development, and entrepreneurship services).

(2) An analysis of the demographics and related needs of the immigrant community in the jurisdiction and alignment with proposed activities.

(3) A description of a public and accessible community input process implemented prior to submission of the proposal to solicit recommendations from immigrant residents, community organizations and service providers that represent or serve the diverse demographics in the jurisdiction, the recommendations provided, and how proposed activities incorporate those recommendations where appropriate.

(4) Plans to ensure continuity of funding for proposed activities after the one-time grant is awarded for sustainability, including through public-private partnerships, or other means.

(5) A description of how the impact, challenges and reach of proposed activities will be objectively measured and reported to GO-Biz not to include personally identifiable information or information that is unnecessary to determine program eligibility, including immigration or citizenship status.

(c) Grants may be used for, but are not limited to, the following activities:

(1) Creating multilingual local government immigrant resources or positions to support community engagement and community navigation, or other local government efforts to improve immigrant access and use of quality of life services.

(2) Funding immigrant integration focused positions and services, such as financial assistance, training or financial literacy programs, referral services for immigrant workers or entrepreneurs, or other local government efforts to improve immigrant access and use of economic mobility and opportunity services.

(3) Creating navigation assistance to specific language needs, working with community-based organizations, nonprofits, counties, and city governments, or a combination of those entities, social service agencies to develop reciprocal referral systems, or other local government efforts to improve access and use of some or all of the above services to support an emerging newcomer population, including immigrant youth, refugees, asylum seekers, or other newly arrived immigrant residents.

(d) Grantees shall collaborate with one another, including through convenings organized by GO-Biz, to share and scale best practices.

(e) Local governments applying for grant funding shall not use the funding award to replace existing funding or required services.

(f) In addition to the grant criteria described in subdivision (b), GO-Biz shall prioritize equitable distribution of funds, where possible, across local government jurisdictions, with consideration to estimates of where immigrants reside and supporting underserved regions. GO-Biz shall consult with relevant state agencies and departments with expertise in public health, housing and social services, workforce development, immigration legal services, and entrepreneurial support services. This includes, but is not limited to, the State Department of Social Services, Department of Housing and Community Development, the State Department of Public Health, and the Labor and Workforce Development Agency.

(g) GO-Biz shall include in an annual report to each house of the Legislature, in accordance with Section 9795, information on awarded grants, project descriptions for each grant award, and information on program outcomes.

(h) Persons who are not lawfully present in the United States may participate in and benefit from local government services provided by this grant program, consistent with Section 1621(d) of Title 8 of the United States Code. For purposes of implementing this grant program, no entity or person shall seek or disclose information that is unnecessary to determine eligibility for program services, including immigration or citizenship status.

(i) Information that may be collected from individuals participating in new services provided under this funding shall not constitute a record subject to disclosure under Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code.

(j) This section shall be operative only until January 1, 2023, and as of that date, is repealed.

12100.141.

 (a) Upon appropriation by the Legislature, GO-Biz shall administer competitive grants to local governments to develop or expand local immigrant integration initiatives.

(b) Applications shall include the following grant criteria:

(1) A description of the proposed activities and how they will advance immigrant integration through locally administered public programs that advance quality of life (health, social services, housing, civic participation services), and economic mobility (education, workforce development and entrepreneurship services).

(2) An analysis of the demographics and related needs of the immigrant community in the jurisdiction and alignment with proposed activities.

(3) A description of a public and accessible community input process implemented prior to submission of the proposal to solicit recommendations from immigrant residents, community organizations and service providers that represent or serve the diverse demographics in the jurisdiction, the recommendations provided, and how proposed activities incorporate those recommendations where appropriate.

(4) Plans to ensure continuity of funding for proposed activities after the one-time grant is awarded for sustainability, including through public-private partnerships, or other means.

(5) A description of how the impact, challenges, and reach of proposed activities will be objectively measured and reported to GO-Biz not to include personally identifiable information or information that is unnecessary to determine program eligibility, including immigration or citizenship status.

(c) Grants may be used for, but are not limited to, all of the following activities:

(1) Creating multilingual local government immigrant resources or positions to support community engagement and community navigation, or other local government efforts to improve immigrant access and use of quality of life services.

(2) Funding immigrant integration focused positions and services, such as financial assistance, training or financial literacy programs, referral services for immigrant workers or entrepreneurs, or other local government efforts to improve immigrant access and use of economic mobility and opportunity services.

(3) Creating navigation assistance to specific language needs, working with community-based organizations, nonprofits, counties, and city governments, or a combination of those entities, social service agencies to develop reciprocal referral systems, or other local government efforts to improve access and use of some or all of the above services to support an emerging newcomer population, including immigrant youth, refugees, asylum seekers, or other newly arrived immigrant residents.

(d) Grantees shall collaborate with one another, including through convenings organized by GO-Biz, to share and scale best practices.

(e) Local governments applying for grant funding shall not use the funding award to replace existing funding or required services.

(f) In addition to the grant criteria described in subdivision (b), GO-Biz shall prioritize equitable distribution of funds, where possible, across local government jurisdictions, with consideration to estimates of where immigrants reside and supporting underserved regions. GO-Biz shall consult with relevant state agencies and departments with expertise in public health, housing and social services, workforce development, immigration legal services, and entrepreneurial support services. This includes, but is not limited to, the State Department of Social Services, Department of Housing and Community Development, the State Department of Public Health, and the Labor and Workforce Development Agency.

(g) GO-Biz shall include in an annual report to each house of the Legislature, in accordance with Section 9795, information on awarded grants, project descriptions for each grant award, and information on program outcomes.

(h) Persons who are not lawfully present in the United States may participate in and benefit from local government services provided by this grant program, consistent with Section 1621(d) of Title 8 of the United States Code. For purposes of implementing this grant program, no entity or person shall seek or disclose information that is unnecessary to determine eligibility for program services, including immigration or citizenship status.

(i) Information that may be collected from individuals participating in new services provided under this funding shall not constitute a record subject to disclosure under Division 10 (commencing with Section 7920.000) of Title 1.

(j) This section shall become operative January 1, 2023.

12100.142.

 (a) Upon appropriation by the Legislature, GO-Biz shall administer competitive grants to service providers to develop export training programs and curriculum aimed at underserved business owners, including immigrant entrepreneurs and small business operators.

(b) Eligible service providers may include, but are not limited to, nonprofit community organizations, economic development agencies, and educational institutions with demonstrated success reaching the target populations, including in languages other than English. Export training and curriculum of applicants shall include all of the following:

(1) Planned outreach to and engagement with underserved businesses, immigrant entrepreneurs, and small business operators including in languages other than English.

(2) A description of how curriculum and instruction would consider the needs of underserved businesses, immigrant entrepreneurs and small business operators, including in languages other than English.

(3) As a component of the training programs, recruitment of business professionals to mentor underserved businesses, immigrant entrepreneurs, and small business operators as part of programming including in languages other than English.

(4) A process by which voluntary, de-identified, aggregate data regarding the demographics of the training participants is reported to GO-Biz.

(5) An agreement that service providers will collaborate with one another, including through convenings organized by GO-Biz, to share and scale best practices.

(c) GO-Biz shall include in an annual report to each house of the Legislature, in accordance with Section 9795, information on awarded grants, a project description for each grant award, the findings of any research conducted during the grant program, and available information on training and program outcomes.

(d) Persons who are not lawfully present in the United States may participate in and benefit from services provided by this initiative, and this section is therefore enacted pursuant to Section 1621(d) of Title 8 of the United States Code. For purposes of implementing this initiative, no entity or person shall seek information that is unnecessary to determine eligibility, including immigration or citizenship status.

12100.143.

 This article shall remain in effect only until June 30, 2026, and as of that date is repealed.

63089.5.

 (a) There is hereby continued in existence in the State Treasury the California Small Business Expansion Fund. All or a portion of the funds in the expansion fund may be paid out, with the approval of the Department of Finance, to a financial institution or financial company that will establish a trust fund and act as trustee of the funds.

(b) The expansion fund and the trust fund shall be used for the following purposes:

(1) To pay defaulted loan guarantee or surety bond losses, or other financial product defaults or losses.

(2) To fund direct loans and other debt instruments.

(3) To pay administrative costs of corporations.

(4) To pay state support and administrative costs.

(5) To pay those costs necessary to protect a real property interest in a financial product default.

(c) The expansion fund and trust fund are created solely for the purpose of receiving state, federal, or local government moneys, and other public or private moneys to make loans, guarantees, and other financial products that the California Small Business Finance Center or a financial development corporation is authorized to provide or that may be provided pursuant to Article 12 (commencing with Section 63089.99). The program manager shall provide written notice to the Joint Legislative Budget Committee and to the Chief Clerk of the Assembly and the Secretary of the Senate who shall provide a copy of the notice to the relevant policy committees within 10 days of any nonstate funds being deposited in the expansion fund. The notice shall include the source, purpose, timeliness, and other relevant information as determined by the bank board.

(d) (1) One or more accounts in the expansion fund and the trust fund may be created by the program manager for corporations participating in one or more programs authorized under this chapter and Section 8684.2. Each account is a legally separate account, and shall not be used to satisfy loan guarantees or other financial product obligations of another corporation except when the expansion fund or trust fund is shared by multiple corporations.

(2) The program manager may create one or more holding accounts in the expansion fund or the trust fund, or in both, to accommodate the temporary or permanent transfers of funds pursuant to Section 63089.3.

(e) The amount of guarantee liability outstanding at any one time shall not exceed 10 times the amount of funds on deposit in the expansion fund plus any receivables due from funds loaned from the expansion fund to another fund in state government as directed by the Department of Finance pursuant to a statute enacted by the Legislature, including each of the trust fund accounts within the trust fund.

63089.99.

 (a) A venture capital program is hereby established within the bank.

(b) The Governor shall appoint a deputy director who shall have direct authority over the venture capital program and serve at the pleasure of the Governor. Notwithstanding any law in this chapter, the deputy director shall act under the guidance and authority of the executive director.

(c) The venture capital program shall operate pursuant to directives and requirements developed and approved by the bank board.

(d) Pursuant to the venture capital program and to the extent permissible, the bank may do both of the following:

(1) Acquire contract rights, or enter into contracts involving loans or bonds (including without limitation, loans and bonds with shared appreciation rights or contingent interest payments) with respect to investment funds, investment fund management companies, special purpose investment vehicles, trusts, nonprofit entities, small businesses, and other private business entities.

(2) Reinvest the proceeds received by the bank from any loans or contract rights, as described in paragraph (1).

(e) Any loans or contract rights made by the bank pursuant to this section shall be exempt from the usury provisions of Section 1 of Article XV of the California Constitution. This subdivision creates and authorizes exempt classes of transactions and persons pursuant to Section 1 of Article XV of the California Constitution.

(f) An action to determine the validity of any resolution, agreement, or other method of financing authorized or undertaken pursuant to this section may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

44526.

 The authority is authorized to do any of the following:

(a) To determine the location and character of any project to be financed under the provisions of this division, to lend financial assistance to any participating party, to construct, reconstruct, renovate, replace, lease, as lessor or lessee, and regulate the same, and to enter into contracts for the sale of any pollution control facilities, including installment sales or sales under conditional sales contracts, and to make loans to participating parties to lend financial assistance in the acquisition, construction, or installation of a project.

(b) To issue bonds, notes, bond anticipation notes, and other obligations of the authority for any of its corporate purposes, and to fund or refund the same, all as provided in this division.

(c) To fix fees and charges for pollution control facilities, or for the loan of moneys to finance pollution control facilities, and to revise from time to time those fees and charges, and to collect rates, rents, fees, loan repayments, and charges for the use of and for any facilities or services furnished, or to be furnished, by a project or any part thereof and to contract with any person, partnership, association, corporation, or public agency with respect thereto, and to fix the terms and conditions upon which any pollution control facilities may be sold or disposed of, whether upon installment sales contracts or otherwise.

(d) To employ and fix the compensation of bond counsel, financial consultants, and advisers as may be necessary in its judgment in connection with the issuance and sale of any bonds, notes, bond anticipation notes, or other obligations of the authority; to contract for engineering, architectural, accounting, or other services of appropriate agencies as may be necessary in the judgment of the authority for the successful development of any project; and to pay the reasonable costs of consulting engineers, architects, accountants, and construction experts employed by any participating party if, in the judgment of the authority, those services are necessary to the successful development of any project, and those services are not obtainable from any public agency.

(e) To receive and accept loans, contributions, or grants, of money, property, labor, or other things of value, for, or in aid of, the authority in carrying out the purposes of this division, from any source, including, but not limited to, the federal government, the state, or any agency of the state, any local government or agency thereof, or any nonprofit or for-profit private entity or individual.

(f) To apply for, and accept, subventions, grants, loans, advances, and contributions from any source, of money, property, labor, or other things of value. The sources may include, but are not limited to, bond proceeds, dedicated taxes, state appropriations, federal appropriations, federal grant and loan funds, public and private sector retirement system funds, and proceeds of loans from the Pooled Money Investment Account.

(g) To provide grants and loans to any city or county deemed eligible by the authority. The grants and loans shall be used to assist California neighborhoods suffering from high poverty or unemployment levels, or from low-income levels, to assist cities and counties in developing and implementing growth policies and programs that reduce pollution hazards and the degradation of the environment, or to promote infill development to revitalize these communities. The grants and loans may be used to employ the technical expertise necessary to identify, assess, and complete applications for state, federal, and private economic assistance programs that develop and implement sustainable development and sound environmental policies and programs. Priority shall be given to applicants lacking the resources to identify, assess, and complete applications to economic assistance, and for those lacking the resources to develop and implement sustainable growth and other sound environmental policies and programs. The authority shall fund these grants and loans from any funds available to the authority or set aside for the authority’s administrative expenses. The authority may not award more than seven million five hundred thousand dollars ($7,500,000) in grants and loans pursuant to this subdivision. This subdivision shall remain operative only until January 1, 2012.

(h) (1) To provide a loan directly, or indirectly through one or more public or private sector intermediaries, to any city, county, school district, redevelopment agency, financial institution, as defined in subdivision (d) of Section 44559.1, for-profit or not-for-profit organization, or participating party, as defined in Section 44506, to assist in financing, among other things, the costs of performing or obtaining brownfield site assessments, remedial action plans and reports, technical assistance, the cleanup, remediation, or development of brownfield sites, or any other similar or related costs, subject to all applicable federal, state, and local laws, procedures, and regulations.

(2) The authority shall establish standards and criteria to ensure that a recipient of direct or indirect financing for cleanup or remediation pursuant to this subdivision has the necessary financial resources and expertise to successfully and appropriately complete the cleanup or remediation of the property.

(3) The authority may pay all, or a portion, of the associated program development and implementation costs of any public or private sector intermediaries through which a loan is made. A loan authorized by this subdivision is subject to both of the following:

(A) A loan may be used in connection with a brownfield site prior to a determination of whether the site has a reasonable potential for economically beneficial reuse.

(B) A loan may be made upon the terms determined by the authority and may provide for any rate of interest or no interest.

(4) The authority shall fund a loan made pursuant to this subdivision from any funds available to it, from any funds set aside for the authority’s administrative expenses, or from any small business assistance fund established for these purposes pursuant to Section 44548.

(5) The authority may waive repayment of all, or a portion, of any loan made pursuant to this subdivision upon conditions to be determined by the authority, and the amount so waived shall be deemed a grant to the recipient.

(i) To provide grants to enhance the capacity of community development financial institutions, as defined in Section 44558, to provide technical assistance and capital access to economically disadvantaged communities in this state, pursuant to Article 7.

(j) To do all things generally necessary or convenient to carry out the purposes of this division.

44558.

 For purposes of this article:

(a) “Administration expenses” means the reasonable and necessary expenses incurred by the authority in the administration of this article, including, without limitation, the fees and costs of attorneys, consultants, and other individuals.

(b) “Applicant” means an eligible applicant that applies to the authority for a grant pursuant to this article.

(c) “Authority” means the California Pollution Control Financing Authority

(d) “Community development financial institution” means any community development financial institution certified by the federal Community Development Financial Institutions Fund under Part 1805 (commencing with Section 1805.100) of Chapter XVIII of Title 12 of the Code of Federal Regulations.

(e) “Disadvantaged community” means a census tract in which the median household income is less than 80 percent of the statewide or county annual median household income level, whichever is less.

(f) “Eligible applicant” means a community development financial institution for which all of the following applies:

(1) The applicant shall have a current certification pursuant to Section 1805 of Title 12 of the Code of Federal Regulations.

(2) The applicant shall have a minimum net worth of twenty-five thousand dollars ($25,000) as indicated on its financial statements prepared in accordance with generally accepted accounting principles.

(3) The applicant shall have made a minimum of five loans in the 12 months prior to submitting its application.

(4) Either of the following applies:

(A) The community development financial institution has a principal office in California, the officers of which are domiciled in California.

(B) The community development financial institution has a record of lending in this state, based on either of the following:

(i) At least 25 percent of the community development financial institution’s loan portfolio, at the time of the application, provides financial assistance to persons or projects located in this state.

(ii) The community development financial institution has provided financing assistance in this state totaling at least ten million dollars ($10,000,000) in the three years prior to its application.

(g) “Executive director” means the Executive Director of the California Pollution Control Financing Authority.

(h) “Fund” means the California Investment and Innovation Fund created in subdivision (b) of Section 44558.1.

(i) “Low-income communities” has the same meaning as defined in Section 39713 of the Health and Safety Code.

(j) “Lower income household” has the same meaning as defined in Section 50079.5 of the Health and Safety Code.

(k) “Program” means the California Investment and Innovation Program established in subdivision (a) of Section 44558.1.

(l) “Small and emerging community development financial institution” means a community development financial institution that has less than ten million dollars ($10,000,000) in assets.

44558.1.

 (a) (1) The authority shall establish the California Investment and Innovation Program for the purpose of providing grants to enhance the capacity of community development financial institutions to provide technical assistance and capital access to economically disadvantaged communities in this state.

(2) The authority shall adopt guidelines for the implementation of this program consistent with this article.

(b) The California Investment and Innovation Fund is created in the State Treasury. The authority shall allocate moneys in the fund to eligible recipients in accordance with this article. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the authority to carry out the purposes of this article. All moneys accruing to the authority pursuant to this article from any source shall be deposited into the fund.

(c) The California Investment and Innovation Fund may receive funds from any source, including, but not limited to, the federal government, philanthropic entities, financial institutions, and state funds appropriated for this purpose.

(d) The authority may access moneys in the fund for administrative costs as necessary to implement the program, subject to conditions, if any, stipulated in the appropriation of the funds.

(e) Notwithstanding any other law, the authority may direct the Treasurer to invest moneys in the fund that are not required for its current needs in the eligible securities specified in Section 16430 of the Government Code as the authority shall designate. The authority may direct the Treasurer to deposit moneys in interest-bearing accounts in state or national banks or other financial institutions having principal offices located in the state. The authority may alternatively require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. All interest or other increment resulting from an investment or deposit shall be deposited into the fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund.

44558.2.

 (a) When funding is available, the authority shall make the funding available to eligible applicants selected by the authority to participate in the program. Unless otherwise prohibited by law, the authority shall use the available funding to do all of the following:

(1) Develop an application process for awarding grants to eligible applicants pursuant to the program and require each eligible applicant to submit an application in the form and manner prescribed by the authority.

(2) Set aside at least 20 percent of any amount made available in a program funding round for eligible applicants that are small and emerging community development financial institutions.

(3) Ensure that eligible recipients receiving grants pursuant to the program serve geographically diverse areas, both urban and rural, across this state.

(b) (1) When funding is available, the authority shall make grants available in one or more rounds of funding availability, not to exceed fifteen million dollars ($15,000,000) in total grants in any calendar year.

(2) Awards shall be announced by February 1 of each year. The first round of funding shall be awarded by February 1, 2024.

(3) Funds shall be available for use by the grantee for a period of two years, as specified in the grant agreement entered into pursuant to Section 44558.3. Grant funds shall be used as prescribed by the article and the grant agreement for a period of two years. Upon the expiration of that two-year period and that grant agreement, there shall be no limitation on the use of the grant funds.

(4) Any income generated from the grant award during the term of grant agreement entered into pursuant to Section 44558.3 shall be reinvested by the grantee into activities allowable under the grant agreement.

(c) As part of the application process described in subdivision (a), the authority shall determine the amount that any eligible applicant who submits a timely and complete application may receive per calendar year, subject to the following conditions:

(1) All eligible applicants that submit a timely and complete application shall receive a grant. In each round of funding the authority shall, in announcing the availability of funding, establish a minimum and maximum grant amount.

(2) For the purpose of determining the amount of individual grants, the authority shall develop criteria to adjust the size of awards based on the total amount of loans closed by the applicant in the most recently completed fiscal year.

(3) After receiving a grant in one year, an eligible applicant may apply in a future funding round if the eligible applicant has made reasonable progress in deploying the previously awarded grant funding.

44558.3.

 (a) Prior to receiving any grant funds under this program, an applicant selected by the authority to participate in the program shall enter into a grant agreement with the authority that requires the applicant to do all of the following:

(1) Achieve specific goals related to capacity building described in subdivision (b).

(2) Provide information requested by the authority to support administration of the program.

(3) Comply with terms and conditions imposed by the authority.

(b) Unless otherwise prohibited by law, an eligible applicant that receives grant funds under the program may use those funds for either or both of the following purposes:

(1) (A) To increase total net assets for the purpose of increasing the eligible applicant’s capacity to attract additional financing that the applicant uses to fund loans, loss reserves, or other means of finance for any of the following:

(i) Commercial facilities that promote revitalization, community stability, or job creation or retention.

(ii) Businesses that provide jobs for low-income persons, are owned by low-income persons, or increase the availability of products and services to low-income persons.

(iii) Facilities providing health care, childcare, educational, cultural, or social services.

(iv) The provision of checking, savings accounts, check cashing, money orders, certified checks, automated teller machines, deposit taking, safe deposit box services, and other similar services.

(v) Development, preservation, or renovation of affordable housing.

(vi) Credit building consumer loans with charges that do not exceed the amounts allowed by Sections 22304.5 and Section 22370 of the Financial Code.

(B) For purposes of this section, “total net assets” means the amount of total assets minus total liabilities, as disclosed in an audited financial statement prepared according to generally accepted accounting principles.

(2) To increase working capital for the purpose of funding services and operations that contribute to the overall community development mission of the eligible applicant, including technical assistance, technology, training, and other activities that benefit low-income neighborhoods, undercapitalized business owners, and other socially and economically disadvantaged individuals.

(c) If a grantee is licensed pursuant to any division of the Financial Code and the grantee loses its license, the grant shall be forfeited and returned, in total, to the authority.

44558.4.

 (a) Notwithstanding any other law, including subdivision (a) of Section 44520, the authority may adopt, amend, or repeal rules and regulations for the administration of the program pursuant to this article without complying with the procedural requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, except as described in subdivision (b).

(b) The authority shall provide a notice of proposed action as described in Section 11346.5 of the Government Code. The notice of proposed action shall be provided to the public at least 21 days before the close of the public comment period, and the authority shall schedule at least one public hearing as described in Section 11346.8 of the Government Code before the close of the public comment period. The committee shall maintain a rulemaking file as described in Section 11347.3 of the Government Code. The final version of the regulations shall be accompanied by a final statement of reasons as described in subdivision (a) of Section 11346.9 of the Government Code.

(c) These rules and regulations shall be effective immediately upon adoption by the authority.

44558.5.

 (a) The authority shall adopt guidelines for annual reporting by grantees that do all of the following:

(1) Provide a description of the grantee’s overall activities during the report period, including how the grant specifically contributed to these activities.

(2) Require a grantee to provide an annual financial statement and meet record retention and audit requirements for the duration of the grant to ensure compliance with the limitations and requirements of this article.

(3) Align the time period covered by the annual report required by this subdivision with the reporting period covered by the federal CDFI Program administered by the United States Department of the Treasury.

(4) For the purpose of tracking the impact of individual grant awards, establish that the performance period shall start no earlier than the date the grant award agreement entered into pursuant to Section 44558.3 is signed and the funding is under the control of the grantee.

(5) Unless otherwise prohibited by law, as a condition of receiving the grant, all grantees shall request businesses directly served by the grantee with grant funds to self-identify their gender, race, and ethnicity. Grantees shall annually report to the authority the information provided to them by the businesses.

(b) By March 1, 2024, and annually thereafter, the authority shall post a report on the authority’s internet website that describes the results of the program, including, but not limited to, the total number of grants awarded, the amount of previously awarded grants that have been reported as spent by the grantees, an aggregation of any data provided by grantees, and a descriptive summary of the information provided by grantees pursuant to subdivision (a) in the most recent reporting period. The authority shall also include in the report any recommendations for improving the effectiveness, transparency, and accountability of public funds deployed to community development financial entities to serve the unmet needs of, and build inclusive economic prosperity in, California’s lower income neighborhoods and undercapitalized small businesses.