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Assembly Committee on Economic Development, Growth & Household Impact 2025 Mid-Year Summary of Legislation

Summary

Mid-year summary of legislation from the Assembly Committee on Economic Development, Growth & Household Impact, with a letter from Chair José Luis Solache Jr., dated 11/30/2025. The letter says affordability remains one of the biggest challenges facing Californians and that the summary covers bills and initiatives the committee has discussed. The contents list committee members, staff, jurisdiction, and 2025 legislation, including AB 254 California-Ireland Trade Commission, AB 265 Small Business Recovery Fund Act, and SB 70 Small Business Procurement and Contract Act. The listed jurisdiction includes small business development and operations, state and local economic development, and international trade.

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“Assembly Committee on Economic Development, Growth & Household Impact 2025 Mid-Year Summary of Legislation.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-01-aedghi-media32-2025-legislative-summary-a735a2696e/, SHA-256 75c97fa1ea2d7b27f0d03245a4a7fe63657576aff326a4425e17eaf356d8df40.

Full text

  Assembly Committee on Economic
 Development, Growth & Household
              Impact

2025 Mid-Year Summary of Legislation




        José Luis Solache Jr., Chair


         Leticia Castillo, Vice Chair
11/30/2025


Dear Friends and Colleagues,

California’s economy is one of the strongest and most diverse in the world, a true engine of
growth, creativity, and innovation. Its reach extends far beyond our state lines, shaping culture,
driving new ideas, and opening doors to opportunity both here at home and across the globe.

However, we also know that behind these big numbers are real people and families who are
feeling the impact of rising costs every day. From housing and groceries to gas and childcare,
affordability remains one of the biggest challenges facing Californians. These pocketbook issues
affect not only our day-to-day lives but also the overall health and stability of our communities.

As Chair of the Assembly Committee on Economic Development, Growth and Household
Impact (E.D.G. &H.I.), I am proud to share the release of our 2025 Legislative Summary. This
report highlights the work our committee has done this year to strengthen California’s economy
while keeping households and affordability at the center of our efforts.

Inside the summary, you will find details on the bills and initiatives we have discussed, each one
aimed at supporting families, creating good jobs, and making sure that opportunity in California
remains within reach for everyone. Whether it is tackling rising costs, boosting small businesses,
or expanding pathways to economic stability, our focus is on realistic, people-centered solutions
that make a meaningful difference.

California’s success story is not just about growth, it is about shared prosperity. I look forward to
continuing these important conversations with you as we work together to build a future where
every household has the chance to thrive.

With appreciation,


José Luis Solache Jr.
Chair, Assembly Committee on Economic Development, Growth and Household Impact




                                               ~2~
Contents
   Committee Members ...................................................................................................................................... 5
   Committee Staff .............................................................................................................................................. 5
   Assembly Republican Caucus, Office of Policy............................................................................................ 5
   Contact Information ....................................................................................................................................... 6
   Jurisdiction ...................................................................................................................................................... 7
Committee Representation ................................................................................................................................. 8
California’s Economic Landscape in Transition: Growth, Challenges, and Opportunities for 2025 ................... 16
2025 Legislation ................................................................................................................................................ 20
   Assembly Bills ............................................................................................................................................... 20
   •        AB 254 (Gallagher) - California-Ireland Trade Commission: .......................................................... 20
   •        AB 265 (Caloza) – Small Business Recovery Fund Act ................................................................... 20
   •        AB 415 (Chen) Office of Small Business Advocate: internet website: information ..................... 21
   •        AB 655 (Alvarez) – California Mexico Border Relations Council .................................................. 21
   •        AB 797 (Harabedian) Community Stabilization Act: Counties of Los Angeles and Ventura....... 21
   •        AB 940 (Wicks, Ellis, Hoover) – Economic Development: Industry Strategies ............................. 22
   •        AB 949 (Schiavo) – Small Business Retail Theft Solutions Grant Program ................................... 22
   •    AB 1232 (Ávila Farías) - Administrative Procedure Act: proposed regulations: cost of living
   impact on residents of the state .................................................................................................................... 22
   •        AB 1254 (Sharp-Collins) - GO-Biz: local immigrant integration initiatives: reporting .................. 22
   •        AB 1347 (Carrillo) – Electrical modernization zones ....................................................................... 23
   •     AB 1477 (Sharp-Collins) - Governor’s Office of Business and Economic Development:
   California Competes Grant Program .......................................................................................................... 23
   Resolutions .................................................................................................................................................... 23
   •        AJR 14 (Gipson) - California Ports: Tariffs ....................................................................................... 23
   •     HR 27 (Gipson) – Supply Chain Awareness Month and the critical role of the supply chain in
   California’s economy .................................................................................................................................... 23
   Senate Bills .................................................................................................................................................... 23
   •        SB 70 (Seyarto) – Public contracts: Small Business Procurement and Contract Act ..................... 23
   •    SB 227 (Grayson, Cabaldon) – Green Empowerment Zone for the Northern Waterfront area of
   the County of Contra Costa ......................................................................................................................... 24
   •        SB 263 (Gonzalez) – International trade: tariffs: impact study ........................................................ 24




                                                                              ~3~
   •    SB 534 (Padilla) – Green Empowerment Zone for the Salton Sea and Southeastern Desert
   Valleys ............................................................................................................................................................ 24
   •        SB 769 (Caballero) – The Golden State Infrastructure Corporation Act ........................................ 24
   •        SB 781 (Reyes) – Small Business ........................................................................................................ 25
Informational Hearings..................................................................................................................................... 26
Glossary of Terms ............................................................................................................................................. 30
   Related definitions ........................................................................................................................................ 32




                                                                               ~4~
             Committee Members

    Assemblymember José Luis Solache Jr., Chair
    Assemblymember Leticia Castillo, Vice Chair
            Assemblymember Mia Bonta
         Assemblymember Darshana Patel
       Assemblymember Cottie Petrie-Norris
         Assemblymember Esmeralda Soria
        Assemblymember Catherina Stefani
           Assemblymember Greg Wallis



                Committee Staff

          Carla Castilla, Chief Consultant
        Ashley Bennett, Committee Secretary




Assembly Republican Caucus, Office of Policy

          Julia King, Principal Consultant
      Katey Patrick, Floor Manager, Consultant




                        ~5~
                 Contact Information


               Office Phone: 916.319.2090
   Committee Website: https://aedghi.assembly.ca.gov/


                    Mailing Address:
                  California State Capital
Assembly Committee on Jobs, Economic Development, and the
                        Economy
               Sacramento, California 95814


                    Office Location:
                Legislative Office Building
Assembly Committee on Jobs, Economic Development, and the
                        Economy
                 1020 N Street, Room 359
               Sacramento, California 95814




                           ~6~
                        Jurisdiction

• Primary jurisdictions are business advocacy within California
  and the United States
• Business advocacy of import/export trade
• California-Mexico relations
• California overseas trade offices; Governor's Office of Business
  and Economic Development
• Development and expansion of new technologies, except
  energy; development of international high-tech markets
• Economic disaster relief
• Economic impact reports
• Effect of balance of trade issues on California
• Expansion of overseas markets
• Foreign investments by California
• Foreign investments in California
• Impacts of federal budget on high-tech projects; impacts of
  federal budget on international trade
• Industrial innovation and research
• International capital, including capital formation
• International trade, research, and import/export finance
• Interstate commerce; seaports and physical infrastructure
• Sister state agreements and friendship agreements with other
  nations
• Small business development and operations
• State and local economic development
• Women and minority business enterprises (WBME).




                              ~7~
Committee Representation

                      Chair, Assemblymember José Luis Solache, Jr.
                      District 62
                      Los Angeles

Assemblymember José Luis Solache, Jr. was first elected to the California State Assembly in
November 2024 representing the cities and
communities of Lakewood, Lynwood, Maywood,
Paramount, South Gate, Huntington Park, Bellflower
and Walnut Park.

Solache has served as a Mayor, Mayor Pro-Tem and
Councilmember in the city of Lynwood since 2013. In
this role, he has worked to recruit new job-creating
employers to the city, build new parks, make City Hall
more transparent and expand youth programs.

Prior to his service in city government, José served for three terms on the Lynwood Unified
School District’s Board of Education. The district educates over 15,000 local students and
                                       José served as Board President three times. His
                                       election to the school board at the age of 23 made him
                                       one of the youngest elected leaders in L.A. County.

                                       Solache was born in Bellflower, grew up in Lynwood
                                      and attended local public schools. He earned a
                                      Bachelor of Arts degree in Liberal Studies from
                                      California State University, Dominguez Hills. While
                                      pursuing his undergraduate degree, he served two
                                      terms as Student Body President. He also served as
                                      statewide Chair of the California State Student
                                      Association (CSSA).




                                           ~8~
                     Vice Chair, Assemblymember Leticia Castillo
                     District 58
                     Riverside, San Bernardino

                     Leticia Castillo is a dedicated
public servant and community advocate proudly
representing California’s 58th Assembly District, which
includes Corona, Eastvale, Jurupa Valley, and Grand
Terrace. Elected in November 2024, she brings decades
of community experience and a lifelong commitment
to service.

Born to immigrant parents from Mexico who came to
the United States in pursuit of the American Dream,
Leticia has lived in Home Gardens, Riverside County,
for more than 50 years. She graduated from Buena
Vista Vocational Educational High School and the Corona College of Cosmetology, later
attending Riverside Community College, where she competed on the Track and Field
Team.

Leticia earned a Bachelor of Science in Human Services from the University of Phoenix and
a Master of Arts in Counseling Psychology from National University, specializing in
                                       Marriage and Family Therapy and Professional
                                       Clinical Counseling.

                                      Before joining the Assembly, Leticia worked for the
                                      Riverside County Department of Mental Health and
                                      later founded her own private counseling practice,
                                      where she provided compassionate care to
                                      individuals and families in need.

                                      The youngest of six siblings, Leticia is a proud
                                      mother and grandmother who remains deeply rooted
                                      in her community and dedicated to building a more
                                      equitable and prosperous future for all Californians.




                                           ~9~
                     Assemblymember Mia Bonta
                     District 18
                     Alameda

                    Mia Bonta was elected to serve California’s 18th Assembly District in a
special election on August 31, 2021. The 18th Assembly District encompasses the East Bay
area of Northern California. It includes a large
portion of the City of Oakland and the cities of
Emeryville and Alameda. Assemblymember Bonta’s
priority is to make California a more affordable,
inclusive, and equitable home for all.

Mia has spent her career advocating for students and
working families. Mia served as the CEO of Oakland
Promise, a cradle-to-college and career preparation
initiative across Oakland public schools. In 2018, Mia
was elected to the Alameda Unified School District School Board and she served as Board
President from 2018-2021. In addition to her professional work, Mia has served on the
boards of national non-profits seeking to build power for low-income people like
                                          Community Change Action and local providers
                                          like Alameda Free Library Foundation. Mia also
                                          served as an appointed 18th Assembly District
                                          Delegate to the California Democratic Party and
                                          on the AD-18 Advisory Committees for Women,
                                          Education, and Early Childhood.

                                          Mia’s advocacy on behalf of children and working
                                          families became the focal point of her campaign for
                                          Assembly. Mia has seen firsthand the cracks in the
                                          systems intended to lift up the most vulnerable in
                                          her community, and she campaigned on priority
                                          issues such as fighting homelessness, building more
                                          affordable housing, passing transformative criminal
justice reform, and combating the threat of climate change. She also intends to prioritize
issues in California’s public education system so that students and teachers have the
necessary resources to succeed.

A proud Black Latina, Mia was raised by activists who protested outside the halls of power
so that one day, people like her could have a seat at the table inside. Mia holds a B.A. in
Psychology from Yale University and went on to pursue an Ed.M from Harvard Graduate
School of Education and a J.D. from Yale Law School.




                                           ~ 10 ~
                      Assemblymember Darshana Patel
                      District 76
                      San Diego


Dr. Darshana R. Patel was elected in November 2024 to represent the 76th Assembly
District in northern San Diego County. The district
spans diverse communities, including the cities of
Escondido, San Marcos, and San Diego, as well as the
unincorporated areas of Del Dios, Elfin Forest,
Fairbanks Ranch, Harmony Grove, Lake San Marcos,
and Rancho Santa Fe.

A research scientist, former school board president,
and dedicated community leader, Dr. Patel brings a
unique blend of expertise and compassion to public
service. As the daughter of immigrants, she experienced firsthand the challenges of building
a new life in California. Her journey was marked by tragedy at an early age when she lost
her mother at 14, a loss that inspired her pursuit of medical and health research. After
earning a B.A. in Biochemistry from Occidental College and a Ph.D. in Biophysics from the
University of California, Irvine, she launched a successful career in biotechnology research
before transitioning to community leadership.

In 2016, as the Poway Unified School District grappled with financial mismanagement and
criminal embezzlement, Dr. Patel ran for the school board to help restore trust and effective
                                   governance. Elected as a Trustee, she focused on
                                   stabilizing the district’s finances, and rebuilding
                                   governance structures, all with a focus on student
                                   success and future readiness. Her efforts earned her
                                   widespread community support, board leadership
                                   positions, and a successful re-election in 2020.

                                     Beyond her local district, Dr. Patel has been a tireless
                                     advocate for educational equity and community
                                     engagement. She served as President of the San Diego
                                     County School Boards Association and on the
                                     California Commission on Asian and Pacific Islander
                                     American Affairs, where she championed policies to
                                     promote inclusion and opportunity. She has also
contributed to public safety as a member of the San Diego Police Department Northeastern
Division Captain’s Advisory Board and has held leadership roles on the Rancho
Peñasquitos Planning Board and Town Council.

Dr. Patel lives in San Diego with her husband and their three daughters.




                                           ~ 11 ~
                     Assemblymember Cottie Petrie- Norris
                     District 73
                     Orange County


Assemblywoman Cottie Petrie-Norris proudly represents California’s 73rd Assembly
District – the cities of Costa Mesa, Irvine and Tustin.

Cottie Petrie-Norris is a businesswoman, mom, and community leader who was elected to
the State Assembly in 2018. In the Assembly, Cottie
has worked to secure millions of dollars in funding for
projects across Orange County and has passed
important legislation to protect the California coast,
improve access to healthcare, keep our children and
communities safe, and help local veterans and small
businesses.

Cottie serves as the Chair of the Assembly’s
Committee on Utilities and Energy. Additionally, she serves on the Assembly’s committees
for Budget; Economic Development, Growth, and Household Impact; Insurance; and
                                   Privacy and Consumer Protection. She also serves on the
                                   Joint Legislative Committee on Climate Change Policies.

                                Assemblywoman Petrie-Norris has been named
                                “Legislator of the Year” by the California Life Sciences
                                Association, the California Family Business Association
                                and the California PACE Association. She received the
                                Watershed Champion Award for her work to preserve
                                clean drinking water and habitat, and the Sierra Club’s
                                Political Leadership Award for her work on climate
                                resilience. She also received the TechNet’s Champion of
Innovation Award for her advocacy to create jobs and fuel economic growth.

Cottie and her husband, Colin, are the proud parents of two sons, Dylan and Hayden, and
their rescue dog, Flounder.




                                         ~ 12 ~
                       Assemblymember Greg Wallis
                       District 47
                       Riverside, San Bernardino


Greg Wallis is a third-generation Californian who is working for a California that is
affordable, safe and vibrant.

Greg studied political science before moving to the Coachella Valley more than a decade
ago. He married his high school sweetheart, Desiree, and they make their home in Bermuda
Dunes with their Great Dane, Harley, and
Australian Cattle Dog, Gunner.

Greg enjoys volunteering with kids, from
coaching young golfers to assisting his wife with
her work as a dance coach and ASB director to
supporting the mission of the local Boys & Girls
Club.

When many of Greg’s friends began moving
out of California because they could not afford
the cost of living here, he decided it was time to
run for the State Assembly. He ran on the belief
that California can do a better job preparing
young people for careers and college, promoting common sense public safety policy that
supports law enforcement, and focusing on providing core government services like water
storage and energy reliability without higher costs that drive families out of the state.

In his first year in office, Greg immediately joined the Problem Solvers Caucus, dedicated to
putting the public good over partisan politics. He is a member of the Committees on
Budget, Economic Development, Growth and Household Impact, Governmental
Organization, Insurance, Utilities and Energy; and he serves as a member on Budget
Subcommittee #3 on Education Finance.




                                           ~ 13 ~
                      Assemblymember Catherine Stefani
                      District 19
                      San Francisco, San Mateo


Catherine Stefani proudly represents California’s 19th Assembly District, encompassing the
western neighborhoods of San Francisco and northern San Mateo County. With decades of
experience as a prosecutor, policy analyst, and
county supervisor, Stefani is a proven leader
dedicated to creating safer, more affordable
communities and ensuring government works for                                         all
Californians.

A lifelong advocate for public safety, Stefani has
worked tirelessly to address gun violence,
domestic violence, and corruption. As a former
prosecutor with the Contra Costa County District
Attorney’s Office, she fought to protect vulnerable victims. Her commitment to reducing
gun violence led her to found the San Francisco chapter of Moms Demand Action, where
she took on the National Rifle Association and pushed for stronger gun safety laws.

In her time as a San Francisco County Supervisor, Stefani focused on improving
community policing, enhancing first responder readiness, and supporting families. She
                                    championed affordable housing initiatives, fought for
                                    humane solutions to homelessness, and prioritized
                                    investments in education and public safety. Her
                                    collaborative leadership style and ability to deliver
                                    results earned her widespread recognition, including
                                    re-election in 2022 with strong community support.
                                    She fought to protect vulnerable victims and authored
                                    Proposition D to establish local advocacy services for
                                    survivors of domestic violence and other crimes.

                                     Stefani grew up in Merced, California, where she
                                     developed a deep appreciation for the challenges facing
                                     working families. She earned her law degree from
McGeorge School of Law and gained policy expertise working with leaders like San Jose
Vice Mayor Cindy Chavez and former California Assembly Speaker Herb Wesson. Stefani
now lives in San Francisco with her two children and her husband.




                                          ~ 14 ~
                    Assemblymember Esmeralda Soria
                    District 27
                    Fresno, Madera, Merced


Assemblywoman Esmeralda Soria serves as California’s 27th Assembly District
Representative, serving the communities of: Biola, Cantua Creek, Caruthers, Coalinga,
Firebaugh, Fresno, Huron, Kerman, Mendota, Raisin City, San Joaquin, Three Rocks,
Tranquility, Westside, Chowchilla, Fairmead, La
Vina, Madera, Madera Acres, Parksdale, Parkwood,
Atwater, Bear Creek, Cressey, Delhi, Dos Palos, El
Nido, Franklin, Le Grand, Livingston, Los Banos,
McSwain, Merced, Planada, Santa Nella, South Dos
Palos, and Tuttle.

A first-generation American and daughter of farm
workers, Assemblywoman Soria knows firsthand about
hard work and sacrifice, having worked alongside her parents in the Central Valley’s
agricultural fields throughout her childhood. She then worked her way through college and
law school. She was born and raised in the Central Valley.

Prior to her work in the Assembly, Soria served as an educator, community advocate, and
Fresno City Councilmember. As Councilmember, she led efforts to increase public safety
and community development, create thousands of good-paying jobs, build affordable and
                               accessible housing, tackle homelessness, and expand access
                               to parks and greenspace.
                                 During her service in the Assembly, Soria worked quickly to
                                 address serious issues facing the Central Valley securing
                                 $300 million dollars for the Distressed Hospital Loan
                                 Program, which helped disperse those funds to hospitals
                                 throughout the state at risk of closing or closed, and seeking
                                 to reopen. Assemblywoman Soria also helped to secure $20
                                 million dollars for flood recovery efforts in the community
                                 of Planada after unprecedented storm surges hit the area in
2023.The Assemblywoman also fought to deliver millions of dollars in funding to the
Central Valley for public safety, student housing, parks and community centers, and
agriculture.
She resides in Fresno with her husband Terance, their five children, and her dog Buddy.




                                            ~ 15 ~
California’s Economic Landscape in Transition: Growth,
Challenges, and Opportunities for 2025

California remains one of the world’s most dynamic and diverse economies, driven by a
vast mix of globally competitive industries spanning technology, entertainment, agriculture,
advanced manufacturing, logistics, clean energy, and climate innovation. By the second
quarter of 2025, California’s GDP had risen to $4.215 trillion, temporarily elevating it to the
fourth-largest global economy before updated IMF estimates placed Japan slightly ahead at
$4.28 trillion, returning California to the fifth position. Despite fluctuations in ranking,
California’s economic momentum has been exceptional, with its 6% growth rate in 2024
outpacing those of the world’s three largest economies: the U.S. at 5.3%, China at 2.6% and
Germany at 2.9%. Over the longer term, California has experienced rapid growth, averaging
                                                        7.5% nominal GDP growth from 2021 to
                                                        2024; however, preliminary projections
                                                        suggest that India may surpass California
                                                        by 2026.

                                                   Over the past 25 years, California’s labor
                                                   market has expanded significantly,
                                                   adding 4.2 million jobs, a 30% increase
                                                   between 1998 and mid-2024. The
                                                   number of employer businesses rose by
                                                   more than 72%, far outpacing the state’s
                                                   18% population growth, and contributing
                                                   to substantial gains in productivity and
economic output. However, the state’s labor force participation rate has gradually fallen
from roughly 67% in 2000 to about 62% today a shift largely driven by demographic aging.
Most Californians remain wage and salary workers, making up 89% of the labor force,
while more than 2 million people operate as self-employed, including independent
contractors and gig workers. Long-term employment growth has paralleled national trends
(1.2% annually versus 1.0% nationally), but California’s post-pandemic recovery has been
slower, adding only 0.9% employment annually compared with the nation’s 1.1%. Today,
the state has 2.3% more jobs than before COVID-19, while the U.S. overall is up 4.4%.
Unemployment rates remain low by historical standards 4.9% in California and 3.8%
nationally though California has generally trended slightly higher than the country over the
last quarter century.




                                            ~ 16 ~
California’s influence across global trade and investment is profound. The state accounts for
9% of all U.S. goods exports and 20% of U.S. services exports, shipping $179 billion in
                                               goods in 2023 and an equal value in services
                                               in 2022. Agriculture remains a major driver:
                                               California exports 17% of the nation’s
                                               agricultural output, while in high-tech
                                               manufacturing it contributes 18% of U.S.
                                               computer and electronic product export.
                                               Mexico, Canada, and China are the state’s
                                               three largest trading partners, representing
                                               19%, 11%, and 9% of exports respectively. On
                                               the import side, California receives $121
                                               billion in goods from China and $61 billion
from Mexico, reinforcing its central role in Pacific commerce. The Ports of Los Angeles and
Long Beach serve as the nation’s most critical gateways for U.S.–Asia trade. Foreign direct
investment is also substantial, with an estimated 18,000 foreign-owned establishments in
2024 supporting roughly 800,000 California jobs, particularly in manufacturing and
professional services. Firms from Japan, the United Kingdom, and France maintain
especially strong footprints in the state.

Despite California’s formidable economic base, business ownership patterns reveal
significant disparities. Men own 62% of all California firms, while women own just 24%,
even though women comprise nearly half of the workforce. Women-owned companies tend
to be smaller in scale: 91% have fewer than 20 employees, compared with 89% of male-
owned firms, and men own seven times as many large firms with more than 500 workers.
Racial gaps are similarly
pronounced. Latinos are
39% of the state’s
workforce and own only
15% of firms, and Black
Californians are 5% of
the workforce and own
just 2%. Asian
Californians are
overrepresented at 23%
of business owners,
compared to 17% of the
workforce. These patterns vary
widely by industry: 41% of accommodation, and food service firms are owned by Asians,
29% of transportation and warehousing firms are owned by Latinos, and 7% of arts and
entertainment firms are owned by Black individuals. Family ownership remains a defining



                                           ~ 17 ~
feature of the business landscape, making up 26% of all California firms, with much higher
rates above 35% in regions such as Merced, Redding, Napa, and Yuba City.

Small businesses form the foundation of California’s economic strength. More than 90% of
private business establishments employ fewer than 20 workers, and another 6% employ
between 20 and 99 workers. These small establishments collectively account for roughly
60% of the state’s jobs. Only 0.1% of California businesses employ 500 or more workers, yet
these large establishments represent 18% of private-sector jobs or 38%, when counting all
locations owned by the same firm. Large employers are concentrated in sectors such as
health care and social assistance, manufacturing, administrative and waste management
services, and transportation and warehousing. While three-quarters of California jobs are in




long-established firms more than a decade old, job creation is increasingly driven by new
businesses: in 2022, firms less than three years old generated 94,000 more jobs than older
firms, with especially strong growth in industries like health care, food services, and
agriculture.

Regional economic dynamics further illustrate California’s shifting landscape. Since 2019,
job growth has been strongest in the Inland Empire and Central Valley, each experiencing
more than 8% employment expansion, particularly in transportation and health services.
Yet growth in these inland regions has been concentrated primarily in middle- and low-
wage sectors, leaving longstanding income divides largely unchanged. In 2023, for example,
the Bay Area’s per-capita income reached $131,000; more than double that of California’s
far northern counties, the Central Valley, and the Inland Empire. Changing migration
patterns, the high cost of living, and the location of emerging industries will all shape future




                                            ~ 18 ~
                                               regional opportunities. Over the long term,
                                                  lifting wages and productivity in inland
                                                  California remains vital to narrowing the
                                                  geographic economic divide.

                                                     These economic strengths exist alongside
                                                     deep structural challenges affecting
                                                    millions of Californians. Roughly, 5
                                                    million residents cannot meet their basic
                                                    needs, and fewer children are surpassing
                                                    their parents’ incomes than in previous
                                                    generations. California’s housing crisis
                                                   marked by extremely high costs and
                                                 limited supply has eroded homeownership
                                           opportunities for younger, lower-income, and
nonwhite residents. In an increasingly knowledge-based economy, higher education remains
one of the strongest pathways to mobility, yet rising tuition costs and student debt
undermine access for those who need it most. Inflation and tariffs have driven up business
operating costs, while workforce constraints tied to an aging population and slow
demographic growth pose long-term challenges to productivity. Climate change adds further
stress, with wildfires, droughts, and energy volatility imposing significant financial and
social burdens. Recent Los Angeles fires, for example, inflicted substantial economic losses
through destroyed businesses, displaced workers, and extensive emergency response costs.

The state holds powerful advantages in emerging sectors such as artificial intelligence,
biotechnology, electric mobility, clean energy, and climate technology. Strengthening global
trade relationships, modernizing supply chains, and investing in climate-resilient
infrastructure will be essential to sustaining growth. Equally important is ensuring that
prosperity is widely shared by expanding access to business ownership, bolstering workforce
training, streamlining pathways into high-growth industries, and reinforcing the safety net
so more Californians can participate
in and benefit from economic
opportunity. With strategic policy
choices, California can preserve its
standing as a global economic leader
while addressing the affordability,
equity, and resilience challenges that
will define its future.




                                           ~ 19 ~
2025 Legislation
During the 2025 Legislative Session, the Committee on Economic Development, Growth,
and Household Impact actively reviewed and discussed numerous bills related to economic
development and affordability. Of the 19 measures considered, four were enacted (chaptered
or adopted), three were vetoed, and the remainder were held, or re-referred, largely due to
fiscal constraints emphasized in the Governor’s budget discipline message.

The Committee’s work centered on advancing policies that promote sustainable economic
growth and expand opportunities across California. The legislation under review addressed
a wide range of priorities, including business incentives, workforce development, trade
partnerships, and investment strategies. Through its deliberations, the Committee continues
to strengthen California’s economic foundation and foster a competitive, inclusive
environment for businesses and communities to thrive.



Assembly Bills

   •   AB 254 (Gallagher) - California-Ireland Trade Commission: Establishes the
       California-Ireland Trade Commission within the Governor's Office of Business and
       Economic Development (Go-Biz) to promote trade and investment between
       California and Ireland. The commission will report findings and recommendations
       annually, and the Governor’s Office must consider them when updating trade
       strategies.
       Status: Held in Committee on Appropriations. August 29, 2025

   •   AB 265 (Caloza) – Small Business Recovery Fund Act: The Small Business
       Recovery Fund Act creates a $100 million state-funded grant program to support
       small businesses affected by a declared state of emergency. Administered by
       CalOSBA, it offers grants of $2,500 to $100,000 with matching requirements,
       supports technical assistance, and requires reporting to the legislature. The program
       runs through January 1, 2032.

       Governor’s message: This bill establishes an unfunded program within the Office of the Small
       Business Advocate to provide competitive grants to small businesses and eligible nonprofit
       organizations directly affected by a declared state of emergency.

       I wholeheartedly support the author's intent to assist small businesses in disaster-affected areas in their
       rebuild and recovery efforts. Just two weeks after the deadly Los Angeles wildfires began in January, I
       signed legislation providing over $2.5 billion in disaster relief to immediately help bolster emergency
       response and jumpstart recovery efforts. In the months since, the state has also administered over $3
       billion in federal small business assistance, including more than $325 million in loans to repair or




                                                   ~ 20 ~
    replace physical property, and more than $235 million in economic injury disaster loans to help
    businesses meet their financial obligations.
    While well intentioned, an unfunded grant program is of little use to small businesses and nonprofits
    without dedicated resources provided through the budget process. In partnership with the Legislature
    this year, my Administration has enacted a balanced budget that recognizes the challenging fiscal
    landscape our state faces while maintaining our commitment to working families and our most
    vulnerable communities. With significant fiscal pressures and the federal government's hostile
    economic policies, it is vital that we remain disciplined when considering bills with significant fiscal
    implications that are not included in the budget, such as this measure.
    For this reason, I cannot sign this bill.
    Status: Vetoed by Governor, October 11, 2025

•   AB 415 (Chen) Office of Small Business Advocate: internet website: information:
    Aims to expand the information currently available on the CalOSBA website.
    Specifically, it would require the Office of Small Business Advocate to post
    information to assist individuals in starting a small business in the state, in addition
    to the existing requirement to assist with starting a nonprofit corporation and
    achieving compliance with statutory and regulatory requirements.
    Status: Hearing cancelled per the request of the author

•   AB 655 (Alvarez) – California Mexico Border Relations Council: Authorizes the
    Speaker of the Assembly to appoint a Member of the Assembly who represents and
    the President pro Tempore to appoint a Member of the Senate who each represent a
    district that shares a border with Mexico to the California-Mexico Border Relations
    Council to serve as an ex officio and nonvoting member.
    Status: Chaptered by Secretary of State- Chapter 41, Statutes of 2025

•   AB 797 (Harabedian) Community Stabilization Act: Counties of Los Angeles and
    Ventura: The Community Stabilization Act, administered by Governor's Office of
    Business and Economic Development (GO-Biz) and the California Infrastructure
    and Economic Development Bank (IBank), creates a program to stabilize property
    values in disaster-affected areas. It enables qualified investors to buy tradable
    securities that fund entities managing and reselling residential land, with profits
    shared between the state and investors. This bill also establishes a Community
    Stabilization Fund, provides tax incentives, and takes effect immediately as an
    urgency statute.

    Governor’s Message:

     This bill requires the California Infrastructure and Economic Development Bank (IBank) to develop
    and administer a program that issues securities to support redevelopment to help stabilize property
    values in disaster-affected areas. The intent of this bill is to ensure fair redevelopment of disaster-
    affected residential properties to help keep such properties in the hands of community members - an




                                                ~ 21 ~
    effort I wholeheartedly support. However, the administration of the IBank program proposed by this
    bill would result in significant, ongoing General Fund impacts in the tens of millions of dollars not
    included in the 2025 Budget Act. In partnership with the Legislature this year, my Administration has
    enacted a balanced budget that recognizes the challenging fiscal landscape our state faces while
    maintaining our commitment to working families and our most vulnerable communities. With
    significant fiscal pressures and the federal government's hostile economic policies, it is vital that we
    remain disciplined when considering bills with significant fiscal implications that are not included in
    the budget, such as this measure.
    For this reason, I cannot sign this bill.
    Status: Vetoed by Governor, October 13, 2025

•   AB 940 (Wicks, Ellis, Hoover) – Economic Development: Industry Strategies:
    Directs the Governor’s Office of Business and Economic Development (GO-Biz) to
    develop a statewide industry strategy for the quantum technology sector, in
    collaboration with regional partners. The bill replaces the original proposal for local
    “quantum innovation zones” with a more coordinated, statewide approach aligned
    with the California Jobs First State Economic Blueprint. The strategy will identify
    key investments, partnerships, and regulatory opportunities to support job creation
    and economic growth in this emerging sector.
    Status: Chaptered by Secretary of State, Chapter 333, Statutes of 2025.

•   AB 949 (Schiavo) – Small Business Retail Theft Solutions Grant Program:
    Establishes the Small Business Retail Theft Solutions Grant Program within the
    Office of the Small Business Advocate to help small businesses prevent and recover
    from retail theft.
    Status: Held under submission in the Assembly Committee of Appropriations.

•   AB 1232 (Ávila Farías) - Administrative Procedure Act: proposed regulations: cost
    of living impact on residents of the state: Requires assessments of regulations to
    consider the cost of living impacts on California residents. It applies to both major
    and non-major regulations. Agencies must notify GO-Biz when contracting for
    analysis services, and GO-Biz will oversee the process and adopt a standardized cost
    of living methodology. If significant impacts are found, GO-Biz will suggest ways to
    reduce them. For major regulations, the approval period is extended to 60 working
    days, and agencies must pursue less costly alternatives or explain why they're
    infeasible. This bill adds consideration to the existing Department of Finance (DOF)
    Standardized Regulatory Impact Assessment (SRIA) process.
    Status: Held under submission in Assembly Committee of Appropriations.

•   AB 1254 (Sharp-Collins) - GO-Biz: local immigrant integration initiatives: reporting:
    require the Governor’s Office of Business and Economic Development (GO-Biz) to
    submit its annual report on awarded grants, project descriptions, and program
    outcomes for the Local Immigrant Integration and Inclusion Grant (LIIIG) to the
    Legislature on or before May 1, instead of the previously unspecified deadline.
    Status: Re-referred to the Assembly Committee of Appropriations




                                               ~ 22 ~
   •   AB 1347 (Carrillo) – Electrical modernization zones: establish six electrical
       infrastructure modernization zones, recognized as priority areas for load growth by
       the Public Utilities Commission (PUC) and Energy Commission. It would allow
       electrical corporations to update load projections with local jurisdictions and
       expedite cost recovery and micro-grid management. The act creates a state-mandated
       local program with no reimbursement required and includes legislative findings for a
       special statute for Altadena in Los Angeles County.
       Status: Hearing canceled at the request of the author.

   •   AB 1477 (Sharp-Collins) - Governor’s Office of Business and Economic
       Development: California Competes Grant Program: Extends the California
       Competes Grant Program, which allows the Governor's Office of Business and
       Economic Development to offer grants to businesses that meet specific criteria, such
       as creating jobs or making investments in California. The bill proposes to continue
       these provisions until January 1, 2031.
       Status: Re-referred to the Committee of Appropriations.

Resolutions

   •   AJR 14 (Gipson) - California Ports: Tariffs: This Resolution urges federal trade and
       economic agencies to assess the impacts of current U.S. tariff policies on California's
       port infrastructure and global trade competitiveness. It calls for coordinated strategies
       to mitigate trade disruptions and support the long-term resilience of the state's ports.
       The resolution highlights the critical role California's ports play in national supply
       chains and seeks federal engagement to address tariff-related challenges.
       Status: Held in Senate Committee on Business Professions & Economic Development.

   •   HR 27 (Gipson) – Supply Chain Awareness Month and the critical role of the supply
       chain in California’s economy: This house resolution recognizes Supply Chain
       Awareness Month and the Critical Role of the Supply Chain in California’s
       Economy.
       Status: Adopted, April 24, 2025.



Senate Bills

   •   SB 70 (Seyarto) – Public contracts: Small Business Procurement and Contract Act:
       raises the maximum contract value under the Small Business Procurement and
       Contract Act from $250,000 to $350,000, allowing state agencies or the California
       State University to award contracts to certified small businesses (SB) or disabled
       veteran business enterprises (DVBE) without competitive bidding. It also requires the
       Department of General Services (DGS) Director to review and adjust the maximum
       value every two years based on changes in the California Consumer Price Index
       (CPI).
       Status: Held in the Committee on Appropriations.



                                            ~ 23 ~
•   SB 227 (Grayson, Cabaldon) – Green Empowerment Zone for the Northern
    Waterfront area of the County of Contra Costa: This bill has an urgency clause
    updating the administration of the Green Empowerment Zone (GEZ) for Contra
    Costa County’s Northern Waterfront area.
    Status: Chaptered by Secretary of State, Chapter 213, Statutes of 2025

•   SB 263 (Gonzalez) – International trade: tariffs: impact study: requires the
    Governor′s Office of Business and Economic Development (GOBiz) in consultation
    with the California State Transportation Agency (CalSTA) and the Department of
    Finance (DOF), to conduct a study on the impacts that increases in tariffs and
    reciprocal tariffs have on the state’s international trade of imports and exports.

    Governor’s message:

    This bill requires the Governor's Office of Business and Economic Development (GOBiz), in
    consultation with the California State Transportation Agency (CalSTA) and the Department of
    Finance, to conduct a study on how increases in tariffs and reciprocal tariffs affect the state's
    international trade of imports and exports.

    The chaos brought by the Trump administration's trade policy is undisputed. California is pushing
    back through all avenues available, including challenging the legality of these actions in court. In
    addition to taking legal action, my Administration is actively assessing and responding to the impact
    of tariffs through various initiatives. GO-Biz's International Affairs and Trade Unit has produced a
    "Tariff Resource Guide" for businesses, and CalSTA's Freight Policy Team has developed a supply
    chain dashboard as they continuously coordinate with stakeholders from the logistics and supply
    chain community. We are also investing in improving and modernizing our own systems, including
    $27 million in Go-Biz's Containerized Ports Interoperability Program and CalSTA's $1.5 billion
    investment to build a more efficient, sustainable, and resilient supply chain across the state.

    While I appreciate the author's intent to study the impacts of tariffs, this bill is duplicative of ongoing
    work; another study is not needed to understand the economic chaos created by the Trump
    administration.
    For this reason, I cannot sign this bill.
    Status: Vetoed by Governor, October 11, 2025

•   SB 534 (Padilla) – Green Empowerment Zone for the Salton Sea and Southeastern
    Desert Valleys: This bill authorizes creating a Green Empowerment Zone for the
    Salton Sea and Southeastern Desert Valleys, effective until January 1, 2035. Status:
    Held in the Committee on Economic Development, Growth and Household Impact

•   SB 769 (Caballero) – The Golden State Infrastructure Corporation Act: Establishes
    the Golden State Infrastructure Corporation (Corporation) as a not-for-profit entity
    within the State Treasurer's Office. Its purpose is to finance in-state infrastructure
    projects through both debt and equity financing. The bill also creates the
    continuously appropriated Golden State Infrastructure Corporation Fund to support
    these efforts. A board of directors will govern the Corporation.
    Status: Ordered to inactive file on request of Assemblymember Aguiar- Curry




                                                 ~ 24 ~
•   SB 781 (Reyes) – Small Business: Requires the Office of the Small Business Advocate
    to work with local agencies to boost small business participation in procurement and
    allows local agencies to create Small Business Utilization Programs to support this
    goal.
    Status: Held in Committee on Appropriations




                                       ~ 25 ~
 Informational Hearings
Although California has demonstrated notable economic resilience in recent years, driven by
strong job growth in the health care, leisure, hospitality, and education sectors, many
Californians continue to face mounting financial challenges resulting from high living costs,
persistent inflation, and widening
income inequality. In response to
these concerns, the Assembly
Committee on Economic
Development, Growth, and
Household Impact dedicated the
2025 legislative year to examining
the rising cost of living and its
effects on households across the
state. Through a series of hearings
collectively known as “The
Pocketbook Tour,” held in four
counties: Fresno, Sacramento, San
Marcos, and Paramount, with
participation from multiple Assemblymembers, the Committee engaged researchers, industry
experts, and community representatives to assess the state’s economic trajectory and identify
strategies to alleviate household financial pressures. The hearings sought to evaluate the effects
of the national inflation crisis, federal trade and tariff policies, and other structural cost drivers
while formulating actionable legislative strategies to promote inclusive, sustainable, and
equitable economic growth.

The Pocketbook Tour began in Sacramento on March 24, 2025, with a hearing titled Making
Sense of California’s Economy: Real Cost Pressures and Household Impacts Facing
Californians. This foundational hearing focused on California’s economy as a whole and
featured three panels:

    •   Panel 1: Statewide Overview, Making Sense of California’s Economy
    •   Panel 2: Investing in California’s Regional Economic Infrastructure
    •   Panel 3: Combating Household Impacts and Cost Pressures from the Ground Up

Together, these discussions established a macro-level understanding of inflationary pressures,
regional disparities, and structural cost drivers affecting households across the state.

Building on this statewide lens, the Committee convened a district hearing on July 11, 2025, in
San Marcos, titled Making Sense of California’s Economy: Real Cost Pressures and Household
Impacts Facing San Diego, with a focus on education and workforce pipelines.

    •   Panel 1: San Diego’s Economic Landscape: Drivers, Data, and Disparities examined
        how affordability challenges intersect with innovation, research and development, small
        businesses, and talent development. Academic and economic development leaders,




                                                ~ 26 ~
       including partners from CSUSM, highlighted how higher education institutions are
       adapting to support workforce readiness and economic mobility.
   •   Panel 2: Resilient by Design: Small Business and Community Adaptation in Real Time
       elevated the voices of small business owners and community innovators navigating rising
       operational costs, talent retention challenges, and local economic pressures, offering
       grounded, solution-oriented insights.

On August 15, 2025, the Committee hosted another district hearing in Paramount, California,
titled Making Sense of California’s Economy: Real Cost Pressures and Household Impacts
Facing Los Angeles, with a specific focus on workforce and small businesses.

   •   Panel 1: Household Impacts and Cost Pressures on Workers and Learners underscored
       the reality that approximately 50 percent of learners in the county are also employed,
       often working long hours in low-wage service industries. Panelists emphasized that
       empowering working learners—through financial supports, flexible employment, and
       career-aligned pathways—is critical to reducing economic insecurity and strengthening
       California’s future labor force.
   •   Panel 2: Microbusiness Affordability and Cost Pressures highlighted the vital role of
       California’s approximately 3.8 million microbusinesses, 67 percent of which are in
       Southern California. Evidence presented demonstrated that higher microbusiness density
       correlates with lower unemployment and higher average household incomes, reinforcing
       the importance of microbusinesses in promoting local economic stability and addressing
       affordability challenges.

The Pocketbook Tour concluded for the year on October 24, 2025, with a Central Valley focused
hearing titled Cost Pressures on California’s Food System and Household Impacts, centered on
agriculture.

   •   Panel 1: Economic Drivers & Affordability in Central Valley Agriculture examined the
       rising costs of production, energy, labor, and regulatory compliance and their effects on
       both agricultural businesses and household affordability in the region.
   •   Panel 2: Challenges & Opportunities for Central Valley Ag Enterprises featured local
       farmers and agricultural business leaders who shared firsthand perspectives on sustaining
       small and mid-sized operations amid cost pressures and market constraints, and how
       these challenges directly influence food prices and household budgets.




                                            ~ 27 ~
The Committee’s findings underscored that rising costs across essential goods and services,
particularly housing, energy, transportation, food, and childcare, have placed considerable strain
                                                                    on California households,
                                                                     disproportionately affecting
                                                                     middle- and low-income
                                                                     earners. Housing costs, in
                                                                     particular, have reached
                                                                     historic highs. Inflationary
                                                                     pressures have further raised
                                                                     prices for food, consumer
                                                                     goods, and household
                                                                     essentials, while
                                                                     transportation and energy
                                                                     costs continue to eat away
                                                                     disposable income. Federal
                                                                     trade and tariff policies have
                                                                     also contributed to cost
                                                                     increases, with tariffs on
imports from Canada, Mexico, and China effectively functioning as taxes that raise consumer
prices and production costs. The resulting loss of manufacturing jobs and retaliatory trade
measures have compounded these challenges, particularly within California’s agricultural,
manufacturing, and construction sectors.

Several factors have driven these record-high cost pressures, including persistent inflation across
key sectors, global supply chain disruptions, energy price volatility, automation-related labor
transitions, and shifting federal trade policies. To address these challenges, the state administers
a range of support programs such as CalFresh, Medi-Cal, energy efficiency initiatives, affordable
housing and rental assistance programs, and small business financing tools to mitigate cost
burdens and promote economic
stability.

Looking forward, the
Committee identified several
key policy priorities for
legislative consideration:
improving economic
forecasting to better
understand household cost
dynamics; addressing
underlying affordability
challenges; evaluating the
effectiveness of state
programs; expanding economic
mobility through education and workforce development; supporting small businesses and
entrepreneurs; and strengthening the state’s resilience to economic volatility. In particular,
investments in affordable housing, wage growth aligned with living costs, and workforce training




                                              ~ 28 ~
in emerging industries such as clean energy, healthcare, and technology were emphasized as
critical pathways to long-term economic equity and sustainability.

Ultimately, while California remains a global leader in innovation, industry, and productivity, its
ongoing affordability crisis threatens to erode the economic security of millions of residents. The
Committee’s work highlights both the urgency and opportunity of the present moment: through
targeted investment, evidence-based policymaking, and a steadfast commitment to inclusivity,
the Legislature can build a more resilient and broadly shared prosperity that ensures all
Californians regardless of income, geography, or background, can fully participate in and benefit
from the state’s continued economic success.




                                              ~ 29 ~
Glossary of Terms
Abbreviations used in committee work are as follows:


          •   BTH: Business Transportation and Housing Agency
          •   BIDs: Business Improvement Districts
          •   CAEATFA: California Alternative Energy and Advanced Transportation
              Financing Authority
          •   CalBIS: California Business Investment Services
          •   CALED: California Association for Local Economic Development
          •   Cal EMA: California Emergency Management Agency
          •   CALGOLD: California Government Online to Desktops
          •   CalCAP: California Small Business Capital Access Loan Program
          •   CalCAP for ADA: California Small Business Capital Access Loan Program
              for Americans with Disabilities Act
          •   CalCAP for Seismic Safety: California Small Business Capital Access Loan
              Program for Seismic Safety
          •   CALWORKS: California Work Opportunity and Responsibility to Kids
              Program
          •   CCTC: California Competes Tax Credit
          •   CDFI: Community Development Financial Institution
          •   CEDP: California Economic Development Partnership
          •   CERF: Community Economic Resiliency Fund Program
          •   CPCFA: California Pollution Control Financing Authority
          •   CWDB: California Workforce Development Board
          •   CWIB: California Workforce Investment Board
          •   DGS: California Department of General Services
          •   DOL: U.S. Department of Labor
          •   DVBE: Disabled Veterans Business Enterprise
          •   EDA: Economic Development Administration
          •   EDC: Economic Development Corporation
          •   EDD: Employment Development Department
          •   ETP: Employment Training Panel
          •   EZ: Enterprise Zone
          •   FDI: Foreign Direct Investment
          •   GEDI: Governor's Economic Development Initiative
          •   GDP: Gross Domestic Product
          •   GHG: Greenhouse Gas



                                         ~ 30 ~
•   G-TEDA: Geographically-Targeted Economic Development Area
•   GO-BIZ: Governor's Office of Business and Economic Development
•   GOED: Governor’s Office of Economic Development
•   HCD: Department of Housing and Community Development
•   HIGH ROAD: High Road policies are a set of economic and workforce
    development strategies to achieve economic growth, economic equity, shared
    prosperity and a clean environment
•   HRTP: High Road Training Partnerships
•   IBANK: California Infrastructure and Economic Development Bank
•   iHUB: Innovation Hub Program
•   IGPAC: Intergovernmental Policy Advisory Committee on Trade
•   IBE: Individuals with Barriers to Employment
•   ITA: International Trade Administration
•   JEDE: Assembly Committee on Jobs, Economic Development, and the
    Economy
•   JTPA: Job Training Partnership Act
•   LAMBRA: Local Agency Military Base Recovery Area
•   LHC: Little Hoover Commission
•   LLR Program: Loan Loss Reserve Program
•   LOCAL BOARDS: Local Workforce Development Boards
•   MASA: Military and Aerospace Support Act
•   MEA: Manufacturing Enhancement Area
•   MOU: Memorandum of Understanding
•   MSA: Metropolitan Statistical Area
•   NS-ADJ: Non-Seasonal Adjustment
•   NAICS: North American Industry Classification System
•   NEC: New Employment Credit
•   NEI: National Export Initiative
•   OSBA: Office of the Small Business Advocate
•   OZ: Opportunity Zone
•   PZ: Promise Zone
•   PACE: Property Assessed Clean Energy
•   REAL: Regional Economic Association of Leaders Coalition
•   ROI: Return on Investment
•   S-ADJ: Seasonal Adjustment
•   SBA: Small Business Administration
•   SBE: Small Business Enterprise
•   SBLGP: Small Business Loan Guarantee Program




                               ~ 31 ~
          •   SBDC: Small Business Development Center
          •   SEDI: Socially and Economically Disadvantaged Individual
          •   SPOC: State Point of Contact
          •   SSBCI: State Small Business Credit Initiative
          •   STEP: State Trade and Export Promotion Program
          •   SUTE: State Sales and Use Tax Exemption
          •   TEA: Targeted Employment Area
          •   TPP: Trans-Pacific Partnership
          •   TTA: Targeted Tax Area
          •   TTIP: Transatlantic Trade and Investment Partnership
          •   USTR: United States Trade Representative
          •   WIA: Workforce Investment Act
          •   WIOA: Workforce Innovation and Opportunity Act
          •   ZEV: Zero Emission Vehicles, as in the ZEV Infrastructure Unit


Related definitions

          •   BUSINESS IMPROVEMENT DISTRICTS (BIDS): Business Improvement
              Districts are nonprofit entities specifically formed to serve property and
              business owners. Once formed under California law, the Business
              Development District is authorized to place assessments on business and
              property owners within the district for the purpose of paying for capital
              improvements and/or operating improvements.

          •   BUSINESS, TRANSPORTATION AND HOUSING AGENCY (BTH):
              BTH oversees the activities of 14 departments consisting of more than 45,000
              employees and a budget greater than $18 billion, as well as several economic
              development programs and commissions. Its operations address financial
              services, transportation, affordable housing, tourism, managed health care
              plans, and public safety. The Governor's Reorganization Plan 2 eliminated
              BTH and transferred all of its programs to other state entities. Several BTH
              programs and services were transferred to the Governor’s Office of Business
              and Economic Development in 2012.

          •   CALIFORNIA ALTERNATIVE ENERGY AND ADVANCED
              TRANSPORTATION FINANCING AUTHORITY (CAEATFA): A state
              financing authority which was established for the purpose of advancing the
              state’s goals of reducing the levels of greenhouse gas emissions, increasing the
              deployment of sustainable and renewable energy sources, implementing
              measures that increase energy efficiency, creating high quality employment




                                           ~ 32 ~
    opportunities, and lessening the state’s dependence on fossil fuels. Among
    other programs, CAEATFA administers the Sales and Use Tax Exclusion
    Program, which reimburses manufacturers for the local and/or state sales tax
    on specified equipment.

•   CALIFORNIA ASSOCIATION FOR LOCAL ECONOMIC
    DEVELOPMENT (CALED): CALED is a statewide professional economic
    development organization dedicated to advancing its members’ abilities to
    achieve excellence in delivering economic development services to their
    communities and business clients. CALED’s membership consists of public
    and private organizations and individuals involved in economic development.
•   CALIFORNIA BUSINESS INVESTMENT SERVICES (CalBIS): Housed in
    the Governor’s Office of Business and Economic Development, CalBIS serves
    employers, corporate real estate executives, and site location consultants
    considering California for new business investment and expansion.

•   CALIFORNIA COMPETES TAX CREDIT (CCTC): The California
    Competes Tax Credit is a capped and allocated tax credit awarded through a
    competitive process overseen by the Governor's Office of Business and
    Economic Development. Credits are available to California taxpayers and
    those that are interested in locating in California.

•   CALIFORNIA ECONOMIC DEVELOPMENT PARTNERSHIP (CEDP):
    The CEDP was formed by Governor Schwarzenegger in 2005 as an
    interagency team to coordinate state government economic development
    activities. Now defunct, its purpose was to facilitate coordination between the
    state, regional/local economic development organizations, and public/private
    resources for the retention, expansion, and attraction of jobs in California.

•   CALIFORNIA EMERGENCY MANAGEMENT AGENCY (Cal EMA):
    Cal EMA was established in 2009 through the merging of the duties and
    powers of the former Governor’s Office of Emergency Services with those of
    the Governor’s Office of Homeland Security. On July 1, 2013, Governor
    Brown’s Reorganization Plan #2 eliminated Cal EMA and restored it to the
    Governor’s Office, renaming it the California Governor’s Office of
    Emergency Services (Cal OES) and merging it with the Office of Public Safety
    Communications.

•   CALIFORNIA GOVERNMENT ONLINE TO DESKTOPS (CalGOLD):
    The CalGOLD database is housed on the Governor’s Office of Business and




                                ~ 33 ~
    Economic Development website and provides links and contact information
    that direct businesses to agencies that administer and issue business permits,
    licenses, and registration requirements from all levels of government. The
    CalGOLD listings include descriptions of the requirements, as well as the
    names, addresses, and telephone numbers of the agencies that administer
    those requirements and issue the permits and licenses, and, in most cases, a
    direct link to the agencies' Internet web pages.

•   CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY
    (CPCFA): A state financing authority which was established for the purpose
    of promoting access to capital through the delivery of financing options to
    California business and environmental industries, including financing to
    qualified waste and recycling projects, and other projects to control pollution
    and improve water supply. Additionally, CPCFA administers the California
    Small Business Capital Access Loan Program, which encourages financial
    institutions to make loans to small businesses and provides for specialty
    programs targeted toward building an improved infrastructure for zero- and
    partial-emission vehicles and assisting small businesses in making structural
    improvements to address seismic safety issues and compliance with the
    federal Americans with Disabilities Act.

•   CALIFORNIA SMALL BUSINESS CAPITAL ACCESS LOAN
    PROGRAM FOR AMERICANS WITH DISABILITIES ACT (CalCAP for
    ADA): A credit enhancement program administered by the California
    Pollution Control Financing Authority for the purpose of encouraging private
    financial institutions to provide small business loans for activities related to
    compliance with the requirements of the ADA.

•   CALIFORNIA SMALL BUSINESS CAPITAL ACCESS LOAN
    PROGRAM (CalCAP): A credit enhancement program administered by
    California Pollution Control Financing Authority for the purpose of assisting
    small business owners in obtaining loans for a variety of purposes through a
    loan loss reserve model.

•   CALIFORNIA SMALL BUSINESS CAPITAL ACCESS LOAN
    PROGRAM FOR SEISMIC SAFETY (CalCAP for Seismic Safety): A credit
    enhancement program administered by California Pollution Control
    Financing Authority for the purpose of assisting residential property owners
    and small business owners in seismically retrofitting residences and small




                                 ~ 34 ~
    businesses with a priority on soft-story buildings and unreinforced brick and
    concrete buildings.

•   CALIFORNIA WORK OPPORTUNITY AND RESPONSIBILITY TO
    KIDS PROGRAM (CALWORKs): Provides temporary financial assistance
    and employment-focused services to families with minor children who have
    income and property below state maximum limits for their family size. Most
    able-bodied parents benefitting from the program are also required to
    participate in the CALWORKs GAIN employment services program.

•   CALIFORNIA WORKFORCE DEVELOPMENT BOARD (CWDB): The
    California Workforce Development Board is responsible for assisting the
    Governor in performing duties and responsibilities required by the federal
    Workforce Opportunity Investment Act of 2014. All members of the Board
    are appointed by the Governor and represent the many facets of workforce
    development – business, labor, public education, higher education, economic
    development, youth activities, employment, and training, as well as the
    Legislature.

•   CALIFORNIA WORKFORCE INVESTMENT BOARD (CWIB): The
    California Workforce Investment Board is responsible for assisting the
    Governor in performing duties and responsibilities required by the federal
    Workforce Investment Act of 1998. In 2015, the California Workforce
    Development Board replaced this board.

•   COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG): The
    Community Development Block Grant Program is a federal program
    administered through the U.S. Department of Housing and Urban
    Development. Funding is provided to states through a formula based on
    population and poverty rates. The three primary goals of the federal program
    are to serve low- and moderate-income people, to eliminate slums and blight,
    and to address other community development needs that pose a serious and
    immediate threat to the health and welfare of the community. Funding is
    provided directly to local jurisdictions with populations over 50,000 for a city
    and 200,000 for a county. For the smallest size communities, the federal
    government provided the money to the state for allocation. In California, the
    California Department of Housing and Community Development administers
    a highly competitive award process to small cities and rural communities.




                                 ~ 35 ~
•   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI):
    Nationwide, over 1000 CDFIs serve economically distressed communities by
    providing credit, capital, and financial services that are often unavailable from
    mainstream financial institutions. CDFIs have loaned and invested in
    distressed communities. Their loans and investments have leveraged billions
    more dollars from the private sector for development activities in low wealth
    communities across the nation. California offers tax credits for investments in
    CDFIs under the Insurance Tax Law, as well as under the Personal and
    Corporate Income Tax Laws.

•   COMMUNITY ECONOMIC RESILIENCY FUND (CERF) PROGRAM:
    The Community Economic Resiliency Fund Program is a $600 million to
    support resilient, equitable, and sustainable regional economies. Policy
    direction is provided by OPR, Labor Agency, and GO-Biz. The Business
    Management Division of EDD oversees the day-today operations.

•   DEPARTMENT OF GENERAL SERVICES (DGS): The department
    employs over 4,000 employees and has a budget in excess of one billion
    dollars. Its functions include e-commerce and telecommunications; siting,
    acquisition, development, leasing, disposal and management of state
    properties; architectural approval of local schools and other state-
    responsibility buildings; printing services provided by the second largest
    government printing plant in the U.S.; procurement of supplies needed by
    other state agencies; and maintenance of the vast fleet of state vehicles. The
    director serves on several state boards and commissions.

•   DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
    (HCD): HCD is one of many departments within BTH. As California's
    principal housing agency, the mission of HCD is to provide leadership,
    policies, and programs to expand and preserve safe and affordable housing
    opportunities and promote strong communities for all Californians. HCD was
    responsible for oversight of California’s G-TEDA programs.

•   DEPARTMENT OF LABOR (DOL): A U.S. government cabinet body
    responsible for standards in occupational safety, wages, number of hours
    worked, unemployment insurance benefits, reemployment services, and a
    portion of the country's economic statistics. The U.S. Department of Labor is
    the lead federal agency on the implementation of the Workforce Innovation
    and Opportunity Act.




                                 ~ 36 ~
•   DISABLED VETERAN BUSINESS ENTERPRISE (DVBE): Certified
    DVBEs that meet eligibility requirements are eligible to receive bid
    preferences on state contracts. DGS’s Procurement Division certifies DVBEs
    and participates in the DVBE Council.

•   ECONOMIC DEVELOPMENT ADMINISTRATION (EDA): The
    Economic Development Administration was established through the Public
    Works and Economic Development Act of 1965 as a part of the U.S.
    Department of Commerce. The EDA’s main goals are to alleviate
    unemployment and diversify the economy as well as assist urban areas with
    planning and emergency public works programs.

•   ECONOMIC DEVELOPMENT CORPORATION (EDC): Locally-based
    corporations whose mission is to promote investment and economic growth
    in their region.

•   ECONOMIC STRATEGY PANEL: The Economic Strategy Panel was
    established in 1993 and eliminated in 2010. The purpose of the Economic
    Strategy Panel was to develop an overall economic vision and strategy to
    guide public policy. The Panel engaged in an objective and collaborative
    biennial planning process that examined economic regions, industry clusters,
    and cross-regional economic issues. The California Regional Economies
    Project was a significant work product of the Economic Strategy Panel.

•   EMPLOYMENT DEVELOPMENT DEPARTMENT (EDD): EDD offers a
    wide variety of services under the Job Service, Unemployment Insurance,
    Disability Insurance, Workforce Investment, and Labor Market Information
    programs. As California’s largest tax collection agency, EDD also handles the
    audit and collection of payroll taxes and maintains employment records for
    more than 16 million California workers.

•   EMPLOYMENT TRAINING PANEL (ETP): The Employment Training
    Panel is a California State agency that began in 1983 and is designed to fund
    training that meets the needs of employers for skilled workers and the need of
    workers for long-term jobs. The program funds the retraining of incumbent,
    frontline workers in companies challenged by out-of-state competition. The
    Employment Training Panel also funds training for unemployed workers and
    prioritizes small businesses and employers and workers in high
    unemployment areas of the State. The Employment Training Panel is funded
    by a tax on business.




                                ~ 37 ~
•   ENTERPRISE ZONE (EZ): Geographically-based economic incentive areas
    in California that provided regulatory or tax benefits to businesses. There
    were 42 Enterprise Zones in California. The California Enterprise Zone
    Program was eliminated in 2013. In its place, three different tax incentives
    were established under the Governor's Economic Development Initiative.

•   GEOGRAPHICALLY TARGETED ECONOMIC DEVELOPMENT
    AREA (G-TEDA): A generic term for all geographically-based economic
    incentive areas in California, including Targeted Tax Areas (TTAs), Local
    Agency Military Base Recovery Areas (LAMBRAs), Enterprise Zones (EZs),
    and Manufacturing Enhancement Areas (MEAs).

•   GOVERNOR'S ECONOMIC DEVELOPMENT INITIAITVE (GEDI): On
    July 11, 2013, California Governor Edmund G. Brown Jr. signed legislation
    to eliminate all Geographically Targeted Economic Development Areas tax
    incentives and to create three new incentives, including the StateSales and
    Use Tax Exemption, the New Employment Credit, and the California
    Competes Tax Credit.

•   GREENHOUSE GAS EMISSIONS (GHG): A greenhouse gas is any of the
    atmospheric gases that absorb infrared radiation and radiate heat. Common
    examples of these gases include carbon dioxide (CO2), methane (CH4),
    nitrous oxide (NO2), ozone, and water vapor. While water vapor is the most
    abundant source of greenhouse gas, it has the least long-term heat impact on
    the earth.

•   GROSS DOMESTIC PRODUCT (GDP): The monetary value of all the
    finished goods and services produced within a country's borders in a specific
    time period, usually calculated on an annual basis. It includes all private and
    public consumption, government outlays, investments, and exports less
    imports that occur within a defined territory.

•   GOVERNOR'S OFFICE OF BUSINESS AND ECONOMIC
    DEVELOPMENT (GO-BIZ): GOBIZ was established in 2012 as a one-stop
    shop intended to help businesses to invest and expand in California. The
    Governor’s Office of Business and Economic Development was established
    through statute in 2012.




                                 ~ 38 ~
•   GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT (GOED):
    GOED was a one-stop shop intended to help businesses to invest and expand
    in California. It was established in 2010 by Executive Order S-05-10.



•   HIGH ROAD: High Road are a set of economic and workforce development
    strategies to achieve economic growth, economic equity, shared prosperity
    and a clean environment. The strategies include, but are not limited to,
    interventions that: (1) Improve job quality and job access, including for
    women and people from underserved and underrepresented populations; (2)
    Meet the skill and profitability needs of employers; and Meet the economic,
    social, and environmental needs of the community.

•   HIGH ROAD TRAINING PARTNERSHIP: High Road Training
    Partnerships are projects or initiatives that use high road strategies for
    developing industry-based and worker-focused partnerships.

•   INDIVIDUAL WITH EMPLOYMENT BARRIERS (IBE): An individual
    with employment barriers” means an individual with any characteristic that
    substantially limits an individual’s ability to obtain employment, including
    indicators of poor work history, lack of work experience, or access to
    employment in nontraditional occupations, long-term unemployment, lack of
    educational or occupational skills attainment, dislocation from high-wage and
    high-benefit employment, low levels of literacy or English proficiency,
    disability status, or welfare dependency. This includes, but is not limited to
    members of all of the following groups:
        ▪ (1) Displaced homemakers:
        ▪ (2) Low-income individuals:
        ▪ (3) Indians, Alaska Natives, and Native Hawaiians;
        ▪ (4) Individuals with disabilities;
        ▪ (5)Older individuals;
        ▪ (6) Ex-offenders;
        ▪ (7) Homeless individuals;
        ▪ (8) Youth who are in, or have aged out of, the foster care system;
        ▪ (9) Individuals who are English language learners, individuals who
            have low levels of literacy, and individuals facing substantial cultural
            barriers;
        ▪ (10) Eligible migrant and seasonal farmworkers;
        ▪ (11) Individuals within two years of exhausting lifetime eligibility
            under Part A of Title IV of the Social Security Act;




                                  ~ 39 ~
       ▪   (12) Single parents, including single, pregnant women;
       ▪   (13) Long-term unemployed individuals; and (14) Transgender and
           gender nonconforming individuals.

•   INNOVATION HUB PROGRAM (iHub): The iHub Program was intended
    to improve the state's national and global competitiveness by stimulating
    partnerships, economic development, and job creation around specific
    research clusters through state-designated iHubs. This program was replaced
    in 2021 by the Inclusive Innovation Hub Program, which was further
    modified in 2022-23 Budget to become the Accelerate California: Inclusive
    Innovation Hub Program.

•   INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
    (IBANK): The Infrastructure and Economic Development Bank is a state
    financing authority that provides low-cost financing to public agencies,
    manufacturing companies, nonprofit organizations, and other entities eligible
    for taxexempt financing. Since January 1, 1999, the Infrastructure and
    Economic Development Bank has financed more than $40 billion in tax-
    exempt bonds and loans for economic development and public infrastructure
    projects throughout the state, as well as various other financings.

•   INTERNATIONAL TRADE ADMINISTRATION (ITA): The
    International Trade Administration strengthens the competitiveness of U.S.
    industry, promotes trade and investment, and ensures fair trade through the
    rigorous enforcement of our trade laws and agreements. ITA works to
    improve the global business environment and helps U.S. organizations
    compete at home and abroad.

•   INTERGOVERNMENTAL POLICY ADVISORY COMMITTEE ON
    TRADE (IGPAC): A federal advisory committee that provides the United
    States Trade Representative advice on matters of international trade from the
    perspective of state and local governments. Current membership includes
    former State Senator and current Los Angeles City Councilman Curren Price,
    and Carlos J. Valderrama of the Los Angeles Area Chamber of Commerce.

•   JOB TRAINING PARTNERSHIP ACT (JTPA): JTPA is a federal law that
    authorizes and funds a number of employment and training programs in
    California. JTPA's primary purpose is to establish programs to provide job-
    training services for economically disadvantaged adults and youth, dislocated
    workers, and others who face significant employment barriers. These




                                ~ 40 ~
    programs help prepare individuals in California for participation in the state's
    workforce, increasing their employment and earnings potential, improving
    their educational and occupational skills, and reducing their dependency on
    welfare.

•   LITTLE HOOVER COMMISSION (LHC): The Little Hoover Commission
    is an independent state oversight agency that was created in 1962. The
    Commission's creation, membership, purpose, duties, and powers are
    enumerated in statute. By statute, the Commission is a balanced bipartisan
    board composed of five citizen members appointed by the Governor, four
    citizen members appointed by the Legislature, two Senators, and two
    Assembly Members.

•   LOAN LOSS RESERVE PROGRAM (LLR Program): A method of
    providing a credit enhancement to financial institutions under which the state,
    lender, and borrower each contribute a set amount of funds, usually 2% to 5%
    of the total loan value, into a loss reserve fund. These funds are generally held
    by the financial institution and multiple loans would be enrolled into a single
    loss reserve fund. This method allows a lender to be fully compensated in the
    case of a default, to the extent there are sufficient moneys in the fund.

•   LOCAL AGENCY MILITARY BASE RECOVERY AREA (LAMBRA): A
    LAMBRA was an area located in California that was designated as such by
    the Business, Transportation and Housing Agency. LAMBRAs were
    established to stimulate growth and development in areas that experienced
    military base closures. Taxpayers that invested, operated, or were located
    within a LAMBRA may have qualified for special tax incentives. There were
    eight LAMBRAs: Southern California Logistics Airport, Castle Airport, Mare
    Island, San Bernardino International Airport, Alameda, Point,
    Mather/McClellan, San Diego Naval Training Center, and Tustin Legacy.

•   LOCAL WORKFORCE DEVELOPMENT BOARD (LOCAL BOARDS):
    There are 49 Local Board, which are comprised of local businesses, labor,
    economic development, workforce training, and local governments. Local
    Boards oversee the delivery of workforce services within their regions. A
    majority (85%) of federal WIOA funds flow directly to Local Boards to
    support their work. In 2015, Local WIBS were replaced by Local Boards.




                                 ~ 41 ~
•   MANUFACTURING ENHANCEMENT AREA (MEA): Incentives
    available to businesses located in an MEA are streamlined local regulatory
    controls, reduced local permitting fees, and eligibility to earn $29,234 or more
    in state tax credits for each qualified employee hired. All manufacturing
    businesses that are engaged in those lines of business described in Codes 2011
    to 3999, inclusive, of the Standard Industrial Classification (SIC) and are
    located in the MEA are eligible for program benefits. There are 2 MEAs
    located in California. They are in the Cities of Brawley and Calexico. Each
    community is located in Imperial County. A MEA designation lasts until
    December 31, 2012.

•   METROPOLITAN STATISTICAL AREA (MSA): In the United States a
    metropolitan statistical area is a geographical region with a relatively high
    population density at its core and close economic ties throughout the area.

•   MICROBUSINESS: A small business which, together with affiliates, has
    annual gross receipts of less than $3,500,000 or is a manufacturer with 25 or
    fewer employees.

•   NATIONAL EXPORT INITIATIVE (NEI): In January 2010, the U.S.
    President launched the National Export Initiative with the goal of doubling
    U.S. exports over 5 years. The initiative is directed through a newly
    established Export Promotion Cabinet and an internal Trade Promotion
    Coordinating Committee which have been tasked to coordinate and align
    their export promotion activities including counseling, customer
    matchmaking services, and financing for exporters.

•   NEW EMPLOYMENT CREDIT (NEC): The New Employment Credit
    provides a tax credit for taxpayers that increases net employment at
    businesses located in high poverty and high unemployment areas of the state,
    as well as the former Enterprise and LAMBRA Zones.

•   NON-SEASONAL ADJUSTMENT: A term used to describe data series that
    have not been subjected to the seasonal adjustment process. In other words,
    the effects of regular or seasonal patterns have not been removed from the
    series.

•   NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
    (NAICS): The North American Industry Classification System (NAICS) has
    replaced the U.S. Standard Industrial Classification (SIC) system. NAICS



                                 ~ 42 ~
    was developed jointly by the U.S., Canada, and Mexico to provide new
    comparability in statistics about business activity across North America. The
    NAICS and SIC manuals provide code numbers for every industry. These
    codes are frequently used in legislation to identify industries, especially those
    benefiting from certain tax legislation like the Manufacturers’ Investment
    Credit (MIC).

•   OFFICE OF THE SMALL BUSINESS ADVOCATE (OSBA): The Office of
    the Small Business Advocate helps support economic growth and innovation
    by working to ensure that California’s small businesses and entrepreneurs
    have the information, tools and resources they need to plan, launch, manage
    and grow their businesses successfully and be resilient. The CalOSBA serves
    to elevate their voices in state government and to advocate on their behalf to
    help ensure all aspiring and current small business owners and entrepreneurs
    are provided with the opportunity to access capital, access markets, and
    connect to the networks and resources they need to succeed.

•   OPPORTUNITY ZONE (OZ): A census tract in this state that has been
    designated by the United States Treasury as an Opportunity Zone, pursuant
    to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code. Federal law
    allows a taxpayer to defer tax payments by depositing capital gains in a
    qualified Opportunity Fund. The Opportunity Fund is required to invest
    funds with Opportunity Zones, which are comprised of low-income census
    tracts, which were recommended by Governors and approved by the U.S.
    Treasury as meeting certain income and/or poverty requirements.

•   PROMISE ZONES (PZ): An urban and rural geographic area designed by
    the federal Department of Housing and Urban Development and the U.S.
    Department of Agriculture. Promise Zones represent areas of high poverty,
    which can benefit from federal, state, and local collaboration of initiatives that
    are designed to increase economic activity, improve educational
    opportunities, leverage private investment, reduce violent crime, enhance
    public health, and address other priorities identified by the community. In
    2018, 22 urban, rural, and tribal Promise Zones were selected through three
    rounds of national competition in which applicants demonstrated a consensus
    vision for their community and its residents, the capacity to carry it out, and a
    shared commitment to specific, measurable results. Tribal communities may
    also be designated as Promise Zones.




                                  ~ 43 ~
•   PROPERTY ASSESSED CLEAN ENERGY (PACE): PACE Programs
    allow local government entities to offer sustainable energy project loans to
    eligible property owners. Through the creation of financing districts, property
    owners can finance renewable onsite generation installations and energy
    efficiency improvements through voluntary assessments on their property tax
    bills.

•   SALES AND USE TAX EXEMPTION (SUTE): Manufacturers and certain
    research and developers may qualify for a partial exemption of sales and use
    tax on certain manufacturing and research and development equipment
    purchases and leases. The partial tax exemption applies to the sale, purchase,
    and lease of qualified tangible personal property on or after July 1, 2014, and
    before July 1, 2022. In order to receive the exemption, the business must
    obtain a timely exemption certificate

•   SEASONAL ADJUSTMENT: A statistical technique that attempts to
    measure and remove the influences of predictable seasonal patterns to reveal
    how employment and unemployment change from month to month.

•   SMALL BUSINESS ADMINISTRATION (SBA): Since its founding in
    1976, the U.S. Small Business Administration has delivered approximately 20
    million loans, loan guarantees, contracts, counseling sessions and other forms
    of assistance to small businesses.

•   SMALL BUSINESS DEVELOPMENT CENTERS (SBDC): The SBDC
    Program is the leader in providing small business owners and entrepreneurs
    with the tools and guidance needed to become successful in today's
    challenging economic climate. Each regional center offers comprehensive
    business guidance on business issues, including, but not limited to, business
    plan development, startup basics, financing, regulatory compliance,
    international trade, and manufacturing assistance. The U.S. Small Business
    Administration and local partners provide funding for the program, in part.

•   SMALL BUSINESS ENTERPRISE (SBE): A business with 100 or fewer
    employees and average annual gross receipts of $14 million or less over the
    previous three tax years, or a manufacturer with 100 or fewer employees.
    SBE’s are eligible to receive a 5% bid preference on state contracts.

•   SMALL BUSINESS LOAN GUARANTEE PROGRAM (SBLGP): The
    state Small Business Loan Guarantee Program (SBLGP) provides guarantees



                                 ~ 44 ~
    on bank loans to small businesses that would otherwise not be made. A
    network of 11 Small Business Financial Development Corporations working
    closely with small business borrowers and local community banks – issues the
    guarantees on behalf of the state.

•   SOCIALLY AND ECONOMICALLY DISADVANTAGED
    INDIVIDUALS (SEDI BUSINESS): Socially and Economically
    Disadvantaged Individuals (SEDI business) are priority business-owners for
    credit enhancement and venture funds allocated to the state under the federal
    State Small Business Credit Initiative.

•   SPECIAL FUND FOR ECONOMIC UNCERTAINTIES: A fund in the
    General Fund (a similar reserve is included in each special fund) authorized
    to be established by statutes and Budget Act control sections to provide for
    emergency situations. (GC 16418)

•   STATE POINT OF CONTACT (SPOC): Funding applications submitted to
    the federal government will often require the applicant to comply with the
    state's SPOC requirements. The SPOC is responsible for reviewing specific
    types of grants for federal funds, loans, or financial assistance.

•   STATE SMALL BUSINESS CREDIT INITIATIVE (SSBCI): The State
    Small Business Credit Initiative (SSBCI) is a $10 billion federal program that
    makes competitive and formula-based awards to states to support the credit
    needs of small businesses, including SEDI-businesses and very small
    businesses (fewer than 10 employees).

•   STATE TRADE AND EXPORT PROMOTION PROGRAM (STEP): The
    STEP Program is a three-year pilot trade and export initiative authorized by
    the Small Business Jobs Act of 2010. Funded by federal grants and matching
    funds from the states, the STEP Program is designed to help increase the
    number of small businesses that are exporting and to raise the value of exports
    for those small businesses that are currently exporting.

•   TARGETED EMPLOYMENT AREA (TEA): One of many options to
    voucher an employee, Targeted Employment Areas (TEA) allow residents of
    certain designated low-income areas to qualify Enterprise Zone employers for
    substantial hiring credits.




                                 ~ 45 ~
•   TARGETED TAX AREA (TTA): The TTA is a program very similar to
    Enterprise Zones. TTA offers incentives that are only available to companies
    located in Tulare County and engaged in a trade or business within certain
    Standard Industrial Codes. State incentives include tax credits for sales and
    use taxes paid on certain machinery, machinery parts, and equipment tax
    credits for hiring qualified employees; and a fifteen-year net operating loss
    carry-forward.

•   TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP
    (TTIP): A proposed trade agreement between the two largest economies in
    the world: the U.S. and the European Union. If realized, the TTIP will create
    a free trade zone that encompasses 46% of the world’s GDP.

•   TRANS-PACIFIC PARTNERSHIP (TPP): A proposed free trade agreement
    that includes economies from within the Pacific region. Negotiations began in
    2010 and currently include 12 countries: Australia, Brunei, Chile, Canada,
    Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S., and
    Vietnam.

•   UNITED STATES TRADE REPRESENTATIVE (USTR): The USTR is an
    agency of more than 200 committed professionals with specialized experience
    in trade issues and regions of the world. The agency directly negotiates with
    foreign governments to create trade agreements, resolve disputes, and
    participate in global trade policy organizations.

•   WORKFORCE INVESTMENT ACT (WIA): The federal Workforce
    Investment Act (WIA), which superseded the Job Training Partnership Act,
    offers a comprehensive range of workforce development activities through
    statewide and local organizations. Available workforce development activities
    provided in local communities can benefit job seekers, laid off workers, youth,
    incumbent workers, new entrants to the workforce, veterans, persons with
    disabilities, and employers. The purpose of these activities is to promote an
    increase in the employment, job retention, earnings, and occupational skills
    improvement of participants.

•   WORKFORCE INNOVATION OPPORTUNITY ACT (WIOA): WIOA is
    the federal law, enacted on July 22, 2014 as Public Law 113-128, which forms
    the basis for awarding approximately $10 billion in federal funds to education




                                ~ 46 ~
    and workforce programs administered by local workforce development boards
    and states.



•   WORKFORCE INVESTMENT BOARD (WIB): The Governor has
    appointed a State Workforce Investment Board (WIB) consisting primarily of
    representatives from businesses, labor organizations, educational institutions,
    and community organizations. The WIB assists the Governor in designing a
    statewide plan and establishing appropriate program policy. In 2015, WIBs
    were replaced by WD.

•   ZERO EMISSION VEHICLE (ZEV): Zero emission vehicles are anticipated
    to play an important role in California reaching its greenhouse gas emission
    reduction goals. There are two kinds of ZEVs: those that use all electric and
    those that are hybrids using both electric and gas combustion technologies.




                                 ~ 47 ~


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