Cal. Gov. Code § 12100.101

Current through the 2024 Legislative Session.

Section 12100.101 - [Effective until 1/1/2027] Definitions

For the purposes of this article, unless the context requires otherwise:

(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 Agricultural Business Drought and Flood Relief Grant Program" or "program" means the grant program established by this article.

(c) "CalOSBA" or "office" means the Office of the Small Business Advocate within the Governor's Office of Business and Economic Development.

(d) "Decline in annual gross receipts or gross profits" means a decrease in annual gross receipts or gross profits when comparing the 2022 taxable year to the 2019 taxable year, as documented by tax returns or Internal Revenue Service Form 990.

(e) "Director" means the Director of the Office of the Small Business Advocate.

(f) "Fiscal agent" means a nonprofit or private institution 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 for implementation.

(g) "Full-time employee" has the same meaning as in subdivision (c) of Section 515 of the Labor Code.

(h)

(1) "Qualified small business" means a business 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, payroll records, and bank account validation:

(A) Is a sole proprietor, independent contractor, C-corporation, S-corporation, cooperative, limited liability company, partnership, nonprofit, or limited partnership, domiciled in California, with 100 or fewer full-time employees in the 2022 and 2023 taxable years.

(B) Began operating in the state prior to January 1, 2020.

(C) Is currently active and operating.

(D) Has been affected by severe drought according to the United States Department of Agriculture drought monitor or is within or serves a county that has a state or federal disaster declaration for flooding.

(E) Provides organizing documents, including a federal tax return or Internal Revenue Service Form 990, and a copy of official filings 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.

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

(A) Businesses without a physical presence in the state.

(B) Governmental entities, other than Native American tribes, or elected official offices.

(C) 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) nonprofit entity or other nonprofit entity.

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

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

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

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

(H) Speculative businesses.

(I) 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, 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 governmental entity, with commission of any of the offenses enumerated in clause (i).

(J) Affiliated companies, as described in Section 121.103 of Title 13 of the Code of Federal Regulations, as it read on August 1, 2022.

(K) Other businesses to be determined by the office consistently with the requirements and intent of this subdivision.

Ca. Gov. Code § 12100.101

Amended by Stats 2023 ch 131 (AB 1754),s 75, eff. 1/1/2024(not implemented).

Amended by Stats 2023 ch 45 (AB 127),s 31, eff. 7/10/2023.

Added by Stats 2022 ch 570 (AB 157),s 3, eff. 9/27/2022.