Government Code section 12096.6.1
(a)
Upon appropriation by the Legislature, GO-Biz shall establish the California Competes Grant Program pursuant to this article.(b)
Upon appropriation by the Legislature, GO-Biz is authorized to provide grants pursuant to this article. GO-Biz shall provide grants only to an applicant that meets at least one of the following criteria:(1)
The applicant will create at least 500 new, full-time jobs in this state, determined on the basis of an annual full-time equivalent, as defined in Section 8000 of Title 10 of the California Code of Regulations, as that section read on January 1, 2021.(2)
The applicant will make a significant infrastructure investment, defined as a project requiring construction or renovation expenditures of at least ten million dollars ($10,000,000) over no more than five years, in this state.(3)
The applicant will create jobs or make the investments in a high-poverty area or high-unemployment area, as those terms are defined in Section 8000 of Title 10 of the California Code of Regulations, as that section read on January 1, 2021, in this state.(c)
The committee shall approve or reject grants pursuant to subdivision (b) of Section 18410.2 of the Revenue and Taxation Code.(d)
(1)The amount of a grant shall be set forth in a written agreement between GO-Biz and the qualified grantee, and shall be based on the factors as described in subparagraphs (A) to (L), inclusive, of paragraph (2) of subdivision (a) of Section 17059.2 and 23689 of the Revenue and Taxation Code, and considerations described in paragraph (2).(2)
When determining whether to enter into a written agreement with a qualified grantee pursuant to this section, GO-Biz shall consider the extent to which the grant will influence the qualified grantee’s ability, willingness, or both, to create jobs in this state that might not otherwise be created in the state by the qualified grantee or any other California business. GO-Biz may also consider other factors, including, but not limited to, all of the following:(A)
The financial solvency of the qualified grantee and the qualified grantee’s ability to finance its proposed expansion.(B)
The qualified grantee’s current and prior compliance with federal and state laws.(C)
Current and prior litigation involving the qualified grantee.(D)
The reasonableness of the fee arrangement between the qualified grantee and any third party providing any services related to the grant allowed pursuant to this section.(E)
Any other factors GO-Biz deems necessary to ensure that the administration of the California Competes Grant Program allowed pursuant to this article is a model of accountability and transparency and that the effective use of the limited amount of grant funds is maximized.(F)
For determinations made under this paragraph during the 2023–24 fiscal year, and each fiscal year thereafter, the grantee’s willingness to relocate jobs into California from a state that has enacted a law that does any of the following:(i)
Voids or repeals, or has the effect of voiding or repealing, existing state protections against discrimination on the basis of sexual orientation, gender identity, or gender expression.(ii)
Authorizes or requires discrimination against same-sex couples or their families, or discrimination on the basis of sexual orientation, gender identity, or gender expression.(iv)
Denies or interferes with, or has the effect of denying or interfering with, a woman’s right to choose to bear a child or to choose and obtain an abortion, as provided by Article 2.5 (commencing with Section 123460) of Chapter 2 of Part 2 of Division 106 of the Health and Safety Code.(G)
For determinations made under this paragraph during the 2023–24 fiscal year, and each fiscal year thereafter, the grantee’s commitment to treating their workforce fairly and creating quality, full-time, wage and salary jobs in the state. Evidence to demonstrate the grantee’s commitment may include, but not be, limited to, the following:(i)
Training, career ladder, apprenticeship, or pre-apprenticeship programs for nonsupervisorial employees.(ii)
Joint labor-management letter of support.(iv)
Little to no history of a bad safety record, or resolved or pending litigation, violations, citations, fines, or penalties relating to any state or federal environmental and labor laws within the last 10 years.(H)
(i) No more than 30 percent of the aggregate amount of grants appropriated in any fiscal year shall be allocated to any one grantee.(ii)
For fiscal years beginning on or after the 2023–24 fiscal year, clause (i) shall not apply if the grant will be used as a state match for a business applying for or obtaining federal incentives to conduct semiconductor research and development or manufacturing.(e)
A qualified grantee shall receive a grant pursuant to this article only if the qualified grantee has not received a tax credit, pursuant to Sections 17059.2 or 23689 of the Revenue and Taxation Code, for the same jobs or investment on which the grant is sought.(f)
The written agreement described in subdivision (d) shall include both of the following:(1)
Provisions indicating whether the grant is to be allocated in full upon approval, or in increments based on mutually agreed-upon milestones, when satisfactorily met by the qualified grantee.(2)
Provisions that allow the committee to recapture the grant, in whole or in part, if the qualified grantee fails to fulfill the terms and conditions of the written agreement.(g)
(1)Implementation of subparagraphs (F) and (G) of paragraph (2) of subdivision (d) of this section for the 2022–23 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the Governor’s Office of Business and Economic Development is hereby authorized to adopt emergency regulations to implement subparagraphs (F) and (G) of paragraph (2) of subdivision (d) of this section during the 2022–23 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(2)
Nothing in this subdivision shall be construed to require the Governor’s Office of Business and Economic Development to approve emergency regulations adopted pursuant to this subdivision.
Source:
Section 12096.6.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=12096.6.1. (accessed Jun. 2, 2025).