AB 3098

Bill Subjects

California Agriculture Relief Act Severe Heat Impacts

Abstract

Existing law, until January 1, 2027, establishes the California Small Agricultural Business Drought and Flood Relief Grant Program in the Office of the Small Business Advocate, under the authority of its director, to provide grants to qualified small agricultural businesses that have been affected by severe drought and flooding. Existing law requires the office to allocate grants to qualified small agricultural businesses that meet the requirements of the program, upon appropriation of grant funds by the Legislature. Existing law defines a "qualified small business" as a business that, among other things, 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. Existing law defines "decline in annual gross receipts or gross profits" for purposes of the program to mean a decrease in annual gross receipts or gross profits when comparing the 2022 taxable year to the 2019 taxable year. This bill, the California Agriculture Relief Act, would rename the program as the California Small Agricultural Business Disaster Relief Grant Program and would expand the purpose of the program to include the provision of grants to qualified small agricultural businesses that have been affected by severe drought, heat, or flooding. The bill would include within the definition of a "qualified small business" one that has been affected by the September 2022 heat wave, as specified. The bill would revise the definition of "decline in annual gross receipts or gross profits" to mean a decrease in annual gross receipts or gross profits when comparing the 2022 or 2023 taxable year to the 2019 taxable year. The bill would make conforming changes. The bill would require funding appropriated related to severe heat impacts to be administered, to the extent feasible, by allocating 20% of grant funds in one or more rounds of grants for small and socially disadvantaged farmers who are qualified small agricultural businesses and by allocating the remainder to qualified small agricultural businesses most impacted by severe heat, including those that are identified using specified codes.