Code Section Group

Government Code - GOV

TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 22980]

  ( Title 2 enacted by Stats. 1943, Ch. 134. )

DIVISION 3. EXECUTIVE DEPARTMENT [11000 - 15986]

  ( Division 3 added by Stats. 1945, Ch. 111. )

PART 2. CONSTITUTIONAL OFFICERS [12001 - 12790]

  ( Part 2 added by Stats. 1945, Ch. 111. )

CHAPTER 1.6. Governor’s Office of Business and Economic Development [12096 - 12100.110]

  ( Chapter 1.6 added by Stats. 2011, Ch. 475, Sec. 2. )

ARTICLE 4.4. California Competes Grant Program [12096.6 - 12096.6.6]
  ( Article 4.4 added by Stats. 2021, Ch. 74, Sec. 1. )

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.

(Added by Stats. 2021, Ch. 74, Sec. 1. (SB 151) Effective July 12, 2021. Repealed as of January 1, 2030, pursuant to Section 12096.6.6.)

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.

(C) Current and prior litigation involving the qualified grantee.

(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.

(Added by Stats. 2021, Ch. 74, Sec. 1. (SB 151) Effective July 12, 2021. Repealed as of January 1, 2030, pursuant to Section 12096.6.6.)

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 9 (commencing with Section 19296) of Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code.

(c) Amounts recaptured pursuant to Article 9 (commencing with Section 19296) 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.

(Amended by Stats. 2021, Ch. 256, Sec. 1. (AB 176) Effective September 23, 2021. Repealed as of January 1, 2030, pursuant to Section 12096.6.6.)

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.

(C) The estimated number of jobs created or retained.

(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.

(Added by Stats. 2021, Ch. 74, Sec. 1. (SB 151) Effective July 12, 2021. Repealed as of January 1, 2030, pursuant to Section 12096.6.6.)

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.

(Added by Stats. 2021, Ch. 74, Sec. 1. (SB 151) Effective July 12, 2021. Repealed as of January 1, 2030, pursuant to Section 12096.6.6.)

12096.6.6.
  

This article shall be repealed on January 1, 2030.

(Added by Stats. 2021, Ch. 74, Sec. 1. (SB 151) Effective July 12, 2021. Repealed as of January 1, 2030, by its own provisions. Note: Repeal affects Article 4.4, commencing with Section 12096.6.)

GOVGovernment Code - GOV4.4.