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 9. California Microbusiness COVID-19 Relief Grant Program [12100.90 - 12100.95]
  ( Article 9 added by Stats. 2021, Ch. 74, Sec. 18. )

12100.90.
  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(A) A local business permit or license.

(B) A bank statement.

(C) A tax return.

(Amended by Stats. 2021, Ch. 256, Sec. 8. (AB 176) Effective September 23, 2021. Repealed as of December 31, 2022, pursuant to Section 12100.95.)

12100.91.
  

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

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

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

(Added by Stats. 2021, Ch. 74, Sec. 18. (SB 151) Effective July 12, 2021. Repealed as of December 31, 2022, pursuant to Section 12100.95.)

12100.91.5.
  

A grant may be recaptured, in whole or in part, in accordance with Article 8 (commencing with Section 19294) of Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code, if CalOSBA determines that the grantee has failed to meet the criteria for a qualified microbusiness pursuant to subdivision (g) of Section 12100.90.

(Added by Stats. 2021, Ch. 256, Sec. 9. (AB 176) Effective September 23, 2021.)

12100.92.
  

The office shall do all of the following:

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

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

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

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

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

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

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

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

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

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

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

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

(Added by Stats. 2021, Ch. 74, Sec. 18. (SB 151) Effective July 12, 2021. Repealed as of December 31, 2022, pursuant to Section 12100.95.)

12100.93.
  

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

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

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

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

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

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

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

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

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

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

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

(B) Investment in working capital.

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

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

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

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

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

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

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

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

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

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

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

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

(A) Race and ethnicity.

(B) Women owned.

(C) Veteran owned.

(D) Located in a rural area.

(E) County.

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

(Amended by Stats. 2021, Ch. 256, Sec. 10. (AB 176) Effective September 23, 2021. Repealed as of December 31, 2022, pursuant to Section 12100.95.)

12100.94.
  

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

(Added by Stats. 2021, Ch. 74, Sec. 18. (SB 151) Effective July 12, 2021. Repealed as of December 31, 2022, pursuant to Section 12100.95.)

12100.95.
  

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

(Added by Stats. 2021, Ch. 74, Sec. 18. (SB 151) Effective July 12, 2021. Repealed as of December 31, 2022, by its own provisions. Note: Repeal affects Article 9, commencing with Section 12100.90.)

GOVGovernment Code - GOV9.