AB 193

Bill Subjects

Abstract

(1) The Bergeson-Peace Infrastructure and Economic Development Bank Act (Bank Act) establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development (GO-Biz) under the direction of an executive director appointed by the Governor, subject to confirmation by the Senate, and governed by a board of directors composed of specified persons. The Bank Act, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities. Existing law, the Small Business Financial Assistance Act of 2013 (Small Business Act) , establishes the Small Business Expansion Fund, a continuously appropriated fund. This bill would establish a venture capital program within the I-Bank under the Small Business Act to, among other things and to the extent permissible, acquire contract rights, or make loans with respect to investment funds, investment fund management companies, special purpose investment vehicles, trusts, nonprofit entities, small businesses, and other private business entities. The bill would require the Governor to appoint a deputy director for the program. The bill would authorize the fund to be used to make loans, guarantees, and other financial products that may be provided under the program. By expanding the activities of the bank that are funded by continuous appropriation from the expansion fund, the bill would make an appropriation. The California Public Records Act requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. This bill would exempt specified records regarding alternative investments in which the venture capital program invests from the disclosure requirements of the California Public Records Act. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (2) Existing law establishes the California Office of the Small Business Advocate (CalOSBA) within GO-Biz to serve as the principal advocate on behalf of small businesses, including to represent the views and interests of small businesses, among other duties. Existing law establishes various grant programs within CalOSBA. This bill would establish, upon appropriation by the Legislature, the California Regional Initiative for Social Enterprises Program within CalOSBA to provide financial and technical assistance to employment social enterprises for purposes of accelerating economic mobility and inclusion for individuals that experience employment barriers. The bill would set forth requirements for the grant and designation of fiscal agents to administer the program, among other things. Existing law establishes the California Small Business COVID-19 Relief Grant Program to assist qualified small businesses affected by COVID-19. Existing law defines the operative terms of that grant program, including the definition of a "qualified small business." Existing law continuously appropriates a specified sum from the General Fund for purposes of that grant program. This bill would redefine certain definitions of that program, including expanding the definition of "qualified small business" to include divisions or departments of tribal governments, cities, and counties, fiscally sponsored organizations, and organizations with an annual gross revenue of up to $5,000,000, and would additionally define new terms. By expanding the definition of what entity may be considered a "qualified small business" to include a greater pool of applicants, this bill would create an appropriation. The bill would additionally require any qualified small business, as defined, to provide an affidavit from the board or authorizing official, as specified. By requiring an affidavit, which is signed under penalty of perjury, the bill would expand the scope of the crime of perjury, thereby imposing a state-mandated local program. Existing law establishes the California Nonprofit Performing Arts Grant Program within CalOSBA for the purpose of providing grants to eligible nonprofit performing arts organizations, as defined, to encourage workforce development. Existing law authorizes, subject to appropriation by the Legislature, $49,500,000 of program funds to be allocated in one or more rounds to eligible nonprofit performing arts organizations. Existing law repeals the program on December 31, 2022. This bill would instead repeal the California Nonprofit Performing Arts Grant Program on June 30, 2023. Existing law establishes, until December 31, 2022, the California Microbusiness COVID-19 Relief Grant Program within CalOSBA to assist qualified microbusinesses, as defined and certified under penalty of perjury, that have been significantly impacted by the COVID-19 pandemic, as provided. Existing law requires CalOSBA to administer a Request for Proposal (RFP) in no more than 2 rounds for a specified period of time per round for eligible grantmaking entities, defined as a county or consortium of nonprofit, community-based organizations, as specified, and, subject to appropriation by the Legislature, requires a grantmaking entity that receives an allocation to administer a county program to, among other things, award individual grants to qualified microbusinesses. This bill would instead repeal the California Microbusiness Business COVID-19 Relief Grant Program on June 30, 2023, and make conforming changes. By expanding a program that requires qualified microbusinesses to make specified certifications under penalty of perjury, the bill would expand a crime and impose a state-mandated local program. (3) Existing law, until December 31, 2022, creates the California Venues Grant Program within CalOSBA to provide grants to eligible independent live events, as defined, that have been affected by COVID-19 in order to support their continued operation. Existing law requires, subject to appropriation by the Legislature, $150,000,000 to be allocated in one or more rounds to eligible independent live events. Existing law requires, for the purposes of program eligibility, that eligible independent live events be entities that satisfy certain criteria, including, but not limited to, being a specified type of business entity, such as a sole proprietorship or a limited liability company and being a specified type of business, classified under the North American Industry Classification System, such as sports teams and clubs, drinking places serving alcoholic beverages, or full-service restaurants. Existing law specifies that an eligible independent live event does not include, among other things, entities that demonstrate a percentage gross earned revenue decline in California of less than 70%, based on a reporting period comparing specified quarters of 2020 to 2019. This bill would add specified performing arts and recreation businesses to the list of types of businesses, classified under the North American Industry Classification System, eligible for the program. The bill would also add various classifications under the National Taxonomy of Exempt Entities related to art, culture, and education to the list of types of businesses eligible for the program. This bill would specify that an eligible independent live event does not include entities that demonstrate a percentage gross earned revenue decline in California of less than 30%, based on a reporting period comparing specified quarters of 2020 to 2019. Existing law also defines "eligible venue" for the purposes of the program as a venue with a defined performance and audience space and specified equipment and staff. This bill would require an eligible venue to also be one of the 3 highest revenue grossing entities, locations, or franchises associated with the applicant. Existing law authorizes applicants to self-identify race, gender, and ethnicity and requires the office to, within 7 business days of the close of each application period, post the aggregate data, as available, and, within 15 business days of the close of each application period, post data by county and legislative district, as available. Existing law requires the office to post all information on its internet website and provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature. This bill would instead require the office to post the aggregate data, as available, and data by county and legislative district, as available, within 30 business days of the close of each application period. (4) Existing law, the California Small Business Development Technical Assistance Expansion Act of 2018, administered by CalOSBA, establishes the California Small Business Development Technical Assistance Expansion Program to, among other things, provide grants to expand the capacity of small business development technical assistance centers in the state administered by and primarily funded by federal agencies, and authorizes the office to include other nonprofit small business technical assistance centers. The act requires an applicant for a grant to meet specified criteria, including, among others, that the applicant has demonstrated the ability to fully draw down substantially all federal funds available to it. Existing law repeals the act on January 1, 2024. This bill would rename the act to the California Small Business Development Technical Assistance Act of 2022, and would make conforming changes for that purpose. The bill would require the office to provide grants to nonprofit small business technical assistance centers that are not administered by or primarily funded by federal agencies. The bill would additionally require the applicant to demonstrate the ability to fully draw down substantially all private funds available to it. The bill would remove the January 1, 2024, repeal date, thereby extending operation of the act indefinitely. The bill would also make various technical changes to the act. (5) Existing law creates GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth and to administer various programs related to these issues. This bill would create the Local Government Budget Sustainability Fund to provide, upon appropriation, grant funding for project support for county governments with a goal of providing opportunities for revenue stability. The bill would require GO-Biz to develop criteria for the selection of grant recipients and would impose various requirements on applicants, including limiting applicants to county governments in high-unemployment and high-poverty areas, as specified, and requiring grant recipients to meet with GO-Biz at least bimonthly to evaluate project progress. The bill would specify the criteria for evaluation and prioritization of grants and would specify eligible activities for grant funds. The bill would repeal these provisions on June 30, 2028. This bill would require GO-Biz to establish the California Containerized Ports Interoperability Grant Program, upon appropriation, to provide grant funding to specified ports in California for the purpose of improving interoperability among containerized ports in California and would establish criteria for determining grant awards. The bill would require GO-Biz to submit specified reports on the grant program to the Legislature. The bill would repeal its provisions on January 1, 2026. This bill would, until June 30, 2026, establish the Local Government Immigrant Integration Initiative and would, upon appropriation, require GO-Biz to administer competitive grants to local governments to develop or expand local immigrant integration initiatives according to specified grant criteria, and prioritization of equitable distribution of funds across local government jurisdictions. The bill would specify that grants may be used for, among other things, funding immigrant integration focused positions and services. The bill would require grantees to collaborate with one another and would prohibit local governments from using the funding award to replace existing funding or required services. The bill would specify that information that may be collected from individuals participating in the new services and would not constitute a public record subject to disclosure, as specified. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The bill would require, upon appropriation, GO-Biz to administer competitive grants to eligible service providers, as specified, to develop export training programs and curriculum aimed at underserved business owners, including immigrant entrepreneurs, and small business operators. The bill would require GO-Biz to complete an annual report, as described, and would specify that persons who are not lawfully present in the United States may participate in and benefit from services provided by these grant programs. (6) Existing law, until January 1, 2030, and upon appropriation, establishes the California Competes Grant Program to award grants to applicants that meet specified criteria relating to the creation of jobs or investments in the state. The program requires GO-Biz to enter into a written agreement with the grantee, and to consider specified factors when determining whether to enter into the agreement. Existing law specifies various limitations on the allocation of grants under the program, including prohibiting GO-Biz from allocating more than 30% of the aggregate amount of grants appropriated in any fiscal year to one grantee. This bill would additionally authorize GO-Biz to consider, when determining whether to enter into a written agreement with a grantee, for the 2023–24 fiscal year, and each fiscal year thereafter, the grantee's willingness to relocate jobs into California from a state that enacted specified laws and the grantee's commitment to treating their workforce fairly and creating quality, full-time, wage and salary jobs in the state. The bill would authorize GO-Biz to allocate more than 30% of the aggregate amount of grants appropriated in any fiscal year to one grantee if the grant will be used as a state match for the purposes of a business applying for or obtaining specified federal incentives. (7) Existing law, the California Inclusive Innovation Hub Program, within the office, among other things, requires the office to designate Inclusive Innovation Hubs (iHub2s) within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists, as provided. The office is required to oversee, coordinate, and provide assistance to each iHub2. Existing law also requires the office to request proposals for the program from applicants, as defined, that include specified information. Existing law establishes the Community Economic Resilience Fund Program (CERF) within the Workforce Services Branch of the Employment Development Department, requires CERF to establish and support high road transition collaboratives, as specified, and requires planning grants to support at least one collaborative per region, as specified. This bill would revise and recast the California Inclusive Innovation Hub Program by, among other things, renaming the program as the "Accelerate California Inclusive Innovation Hub Program," and renaming an Inclusive Innovation Hub as an "Accelerate California: Inclusive Innovation Hub." The bill would require previously designated iHUB2s to be newly awarded under the Accelerate California: Inclusive Innovation Hub Program and would modify the requirements for the program. The bill would also make conforming changes in this regard. This bill would establish the Accelerate California Entrepreneurship Fund, to be administered by the office upon appropriation by the Legislature, to provide acceleration grants to small businesses and entrepreneurs that participate in the Accelerate California: Inclusive Innovation Hubs, as provided. (8) Existing law, the California Pollution Control Financing Authority Act, establishes the California Pollution Control Financing Authority, with specified powers and duties, and authorizes the authority to approve financing for projects or pollution control facilities to prevent or reduce environmental pollution. Existing federal law establishes the Capital Magnet Fund and makes moneys in that fund available to the United States Secretary of the Treasury to carry out a competitive grant program to attract private capital for, and increase investment in, certain affordable housing and economic development projects by providing grants, as provided, to Treasury-certified community development financial institutions or nonprofit organizations that meet specified criteria. Existing federal law, the federal Community Development Financial Institutions Program, provides financial and technical assistance to specified recipients to enhance their ability to provide specified financial products, financial services, and development services to and in their target markets in order to promote economic revitalization and community development through investment in and assistance to community development financial institutions, as defined and specified. This bill would establish the California Investment and Innovation Program, administered by the California Pollution Control Financing Authority (authority) , 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 the state. The bill would establish the California Investment and Innovation Fund and would continuously appropriate moneys in the fund to the authority to carry out program, among other things. By establishing a continuously appropriated fund, this bill would make an appropriation. The bill would require the authority to award a grant to an eligible applicant, defined as a community development financial institution that meets specified criteria under the program, as provided. The bill would specify authorized uses of grant funds, including increasing working capital for the purpose of funding services and operations that contribute to the overall community development mission of the eligible applicant, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. (9) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.