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Measure AB 265
Authors Caloza  
Principle Coauthors: Solache  
Coauthors: Bonta   Fong   Garcia   Gipson   Harabedian   Pacheco   Schiavo   Cortese  
Subject Small Business Recovery Fund Act.
Relating To relating to economic recovery.
Title An act to add and repeal Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to economic recovery.
Last Action Dt 2025-09-16
State Enrolled
Status Vetoed
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-10-11     Consideration of Governor's veto pending.
2025-10-11     Vetoed by Governor.
2025-09-24     Enrolled and presented to the Governor at 3 p.m.
2025-09-12     Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3370.).
2025-09-12     In Assembly. Concurrence in Senate amendments pending.
2025-09-11     Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2930.).
2025-09-09     Ordered to special consent calendar.
2025-09-02     Read second time. Ordered to third reading.
2025-08-29     From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).
2025-08-29     Read second time and amended. Ordered returned to second reading.
2025-08-18     In committee: Referred to suspense file.
2025-07-07     From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 7). Re-referred to Com. on APPR.
2025-06-26     From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
2025-06-11     Referred to Com. on B. P. & E.D.
2025-06-03     In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-02     Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1899.)
2025-05-27     Read second time. Ordered to third reading.
2025-05-23     Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)
2025-05-23     From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 23).
2025-05-23     Read second time and amended. Ordered returned to second reading.
2025-05-07     In committee: Set, first hearing. Referred to APPR. suspense file.
2025-04-22     Re-referred to Com. on E.D., G., & H.I.
2025-04-22     Coauthors revised.
2025-04-22     From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 22). Re-referred to Com. on APPR.
2025-04-21     From committee chair, with author's amendments: Amend, and re-refer to Com. on E.D., G., & H.I. Read second time and amended.
2025-02-10     Referred to Com. on E.D., G., & H.I.
2025-01-18     From printer. May be heard in committee February 17.
2025-01-17     Read first time. To print.
Keywords
Tags
Versions
Enrolled     2025-09-16
Amended Senate     2025-08-29
Amended Senate     2025-06-26
Amended Assembly     2025-05-23
Amended Assembly     2025-04-21
Introduced     2025-01-17
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Caloza</ns0:AuthorText>
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		<ns0:Title> An act to add and repeal Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to economic recovery.</ns0:Title>
		<ns0:RelatingClause>economic recovery</ns0:RelatingClause>
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			<ns0:Subject>Small Business Recovery Fund Act.</ns0:Subject>
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			<html:p>Existing law establishes the Office of Small Business Advocate (OSBA) within the Governor’s Office of Business and Economic Development, also known as GO-Biz, to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace.</html:p>
			<html:p>This bill, upon appropriation by the Legislature, would require OSBA to allocate 90% of the moneys appropriated to the Small Business Recovery Fund, which would be created within the State Treasury, for purposes of a small business recovery grant program to provide competitive grants to small
			 businesses, as defined, that are directly impacted by a state of emergency proclaimed by the Governor or other specified emergencies. The bill would require the funds to be used for, among other things, to support recovery and rebuilding efforts, and would require a grantee to match the amount of the grant awarded. The bill would require OSBA to award grants in amounts that range from $2,500 to $100,000, inclusive.</html:p>
			<html:p>This bill
			 would require OSBA to allocate 5% of the moneys appropriated to the fund to the Small Business Technical Assistance Program administered by GO-Biz, for grants to small business technical assistance centers that provide direct service to disaster-affected areas, and 5% to the Capital Infusion Program administered by GO-Biz, to support increased demand for capital-related technical assistance in disaster areas.</html:p>
			<html:p>This bill would require the Director of the Office of Small Business Advocate to prepare and submit a report to the Legislature on the results of grant funds awarded for each state of emergency proclaimed by the Governor, as provided.</html:p>
			<html:p>This bill would repeal the Small Business Recovery Fund Act on January 1, 2032.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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			<ns0:Num>SECTION 1.</ns0:Num>
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				Article 8 (commencing with Section 12100.80) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the 
				<ns0:DocName> Government Code</ns0:DocName>
				, to read:
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						<ns0:LawHeadingText>Small Business Recovery Fund Act</ns0:LawHeadingText>
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						<ns0:Num>12100.80.</ns0:Num>
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								<html:p>This article shall be known, and may be cited, as the Small Business Recovery Fund Act.</html:p>
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								<html:p>The Legislature finds and declares all of the following:</html:p>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									Severe weather-related and natural disaster events have caused significant economic and operational disruptions to small businesses across California.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Recovery, rebuilding, and investments in resilient infrastructure are essential to ensuring businesses remain viable and contribute to California’s economic stability.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Establishing a recovery fund will provide essential support to impacted
						  entities and promote long-term resilience against future disasters.
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						<ns0:Num>12100.83.</ns0:Num>
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									(a)
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									Upon appropriation by the Legislature for purposes of this article, the Office of Small Business Advocate shall allocate 90 percent of the moneys appropriated to the Small Business Recovery Fund, which shall be created within the State Treasury, for purposes of a small business recovery grant program to provide competitive grants to small businesses that are directly impacted by a state of emergency proclaimed by the Governor,
						  a local emergency proclaimed by the governing body of a city, county, or city and county, or other state of emergency, including, but not limited to, earthquakes, natural or man-made disasters specific to that jurisdiction, conditions of extreme peril to persons or property, or a state of war emergency.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									The grant program shall prioritize funding for eligible small businesses affected by the natural disasters referenced in the Governor’s Proclamation of a State of Emergency, issued January 7, 2025, and by any subsequent disasters covered by a proclamation of a state of emergency issued by the Governor while the fund is in existence.
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						<ns0:Num>12100.84.</ns0:Num>
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								<html:p>
									(a)
									<html:span class="EnSpace"/>
									Funds awarded pursuant to the small business recovery grant program shall be used for the following purposes:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									To support recovery and rebuilding efforts for grantees.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									To promote investment in more resilient infrastructure, including, but not limited to, all of the following: 
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									Infrastructure upgrades and improvements.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									Relocation of electrical or business equipment.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									Business relocation to more secure locations within the state.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									Investment in additional insurance coverage.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									To ensure that grantees can reopen and remain viable.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Grant funds may be used retroactively for work already performed in response to the proclaimed disaster, provided sufficient documentation is submitted to the Office of Small Business Advocate.
								</html:p>
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					<ns0:LawSection id="id_857B9840-1C4A-4266-A871-7132219D0505">
						<ns0:Num>12100.85.</ns0:Num>
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								<html:p>
									(a)
									<html:span class="EnSpace"/>
									Except as provided in subdivision (b), and in accordance with Section 12100.86, a small business, as defined in Section 14837, may apply for funds under the small business recovery grant program.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Notwithstanding subdivision (a), funds shall not be awarded to any of the following: 
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Foundations and charitable trusts.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Gambling establishments.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Adult entertainment establishments.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Hospitals or nursing facilities. 
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Rental property businesses.
								</html:p>
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					<ns0:LawSection id="id_E35099B2-02FA-45F6-ACB5-640E15AF68C1">
						<ns0:Num>12100.86.</ns0:Num>
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								<html:p>An applicant for the small business recovery grant program shall meet the following qualifications:</html:p>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									The applicant shall be current with all state payroll taxes, sales taxes, and income taxes, as applicable.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									The applicant was not the subject of an order for relief in bankruptcy as of the date of the declared disaster.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									The applicant has not permanently ceased operations.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									The applicant is not barred from
						  receiving federal or state
						  funds.
								</html:p>
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					<ns0:LawSection id="id_4AD0CFA3-6A5C-44E4-9A01-EFE6AAA2749B">
						<ns0:Num>12100.87.</ns0:Num>
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								<html:p>
									(a)
									<html:span class="EnSpace"/>
									The Office of Small Business Advocate shall award grants pursuant to the small business recovery grant program through a competitive process. 
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The rating criteria for the grant application may include, but is not limited to, all of the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									The viability of the applicant’s recovery plan.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The applicant’s ability to match grant funds.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The efficacy and long-term impact of the
						  applicant’s proposed recovery efforts.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Preference in awarding grants shall be given to applicants who receive technical assistance through the Small Business Technical Assistance Program administered by the Office of Small Business Advocate. 
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									The office shall award grants in amounts that range from two thousand five hundred dollars ($2,500) to one hundred thousand dollars ($100,000), inclusive.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									A grantee shall match on a dollar-for-dollar basis, the amount of the funds awarded pursuant to the small business recovery grant program. The applicant may use funds received from insurance claims, small business association
						  recovery loans, or in-kind contributions to satisfy the match requirement.
								</html:p>
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					</ns0:LawSection>
					<ns0:LawSection id="id_6005672C-86D9-492C-BFDD-E535D381A062">
						<ns0:Num>12100.88.</ns0:Num>
						<ns0:LawSectionVersion id="id_AC4840FF-2CD4-4EFD-A44C-E10F75272E8B">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									The Office of Small Business Advocate shall allocate 10 percent of the funds appropriated to the Small Business Recovery Fund for both of the following purposes:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Five percent shall be allocated to the Small Business Technical Assistance Program for grants to small business technical assistance centers that provide direct service to disaster-affected areas.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Five percent shall be allocated to the Capital Infusion Program, administered by the Governor’s Office of Business and Economic Development, to
						  support increased demand for capital-related technical assistance in disaster areas.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									It is the intent of the Legislature that funds allocated pursuant to this section be prioritized to provide outreach and assistance to small businesses owned by ethnic minorities, women, and other disenfranchised segments of the population.
								</html:p>
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					</ns0:LawSection>
					<ns0:LawSection id="id_AAA38738-4FA8-44AD-AD10-5749C98BA0B2">
						<ns0:Num>12100.89.</ns0:Num>
						<ns0:LawSectionVersion id="id_EFF47861-C992-4615-A2EF-02014AC22429">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									It is the intent of the Legislature to evaluate the effectiveness of the Small Business Recovery Fund periodically and appropriate additional funds as necessary to address ongoing and future disaster recovery needs.
								</html:p>
								<html:p>
									(b)
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									The Director of the Office of Small Business Advocate shall prepare a report on the results of grant funds awarded pursuant to this article for each state of emergency proclaimed by the Governor. The director shall submit a report to the Legislature on or before 180 days after a state of emergency is proclaimed by the Governor. The report shall be submitted
						  in compliance with Section 9795.
								</html:p>
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					</ns0:LawSection>
					<ns0:LawSection id="id_53B974DB-64C2-4BAE-83C9-D50BBA47A88B">
						<ns0:Num>12100.90.</ns0:Num>
						<ns0:LawSectionVersion id="id_A4F4C481-E8BE-4074-A495-755BDC39049B">
							<ns0:Content>
								<html:p>This article shall remain in effect only until January 1, 2032, and as of that date is repealed.</html:p>
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Last Version Text Digest Existing law establishes the Office of Small Business Advocate (OSBA) within the Governor’s Office of Business and Economic Development, also known as GO-Biz, to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace. This bill, upon appropriation by the Legislature, would require OSBA to allocate 90% of the moneys appropriated to the Small Business Recovery Fund, which would be created within the State Treasury, for purposes of a small business recovery grant program to provide competitive grants to small businesses, as defined, that are directly impacted by a state of emergency proclaimed by the Governor or other specified emergencies. The bill would require the funds to be used for, among other things, to support recovery and rebuilding efforts, and would require a grantee to match the amount of the grant awarded. The bill would require OSBA to award grants in amounts that range from $2,500 to $100,000, inclusive. This bill would require OSBA to allocate 5% of the moneys appropriated to the fund to the Small Business Technical Assistance Program administered by GO-Biz, for grants to small business technical assistance centers that provide direct service to disaster-affected areas, and 5% to the Capital Infusion Program administered by GO-Biz, to support increased demand for capital-related technical assistance in disaster areas. This bill would require the Director of the Office of Small Business Advocate to prepare and submit a report to the Legislature on the results of grant funds awarded for each state of emergency proclaimed by the Governor, as provided. This bill would repeal the Small Business Recovery Fund Act on January 1, 2032.