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AB 685

Relating to: individual income tax subtraction for certain theft losses. (FE)

2025-2026 Regular Session Introduced by Rob Swearingen

Creates a dedicated $50 million fund to directly aid small businesses and their employees affected by the January 2025 LA/Ventura wildfires, via CIP, SB-TAP, and targeted relief.

Presented to the Governor on 4-2-2026
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WeVote Research Nonpartisan
Bill Summary · AB 685

AB 685 — Los Angeles and Ventura Wildfire Small Business Recovery Act (Summary)

Purpose and intent

  • Establishes a targeted recovery framework for small businesses directly impacted by the January 2025 wildfires in Los Angeles and Ventura Counties.
  • Creates a dedicated funding mechanism to bolster small business recovery through existing GO-Biz programs (CIP and SB-TAP) and to provide targeted relief to employees of affected businesses.
  • Provides immediate (urgency) funding and a sunset date to evaluate program effectiveness, with a legislative reporting requirement to track use and impact.

Key provisions

  • New funding and fund administration

    • Creates the Los Angeles and Ventura Wildfire Small Business Recovery Fund in the State Treasury.
    • Appropriates $50,000,000 from the General Fund to the new fund.
    • Office of Small Business Advocate (OSBA) at GO-Biz administers the fund and allocates money to:
    • Capital Infusion Program (CIP)
    • Small Business Technical Assistance Program (SB-TAP)

  • Targeted use of funds

    • Money from the fund may be used solely to assist small businesses directly impacted by the January 2025 wildfires in Los Angeles and Ventura Counties.
    • OSBA must allocate a portion of these funds to CIP and SB-TAP to support recovery, resilience, and access to capital for affected businesses.

  • Employee relief program

    • OSBA must establish a separate program to provide relief for employees of small businesses directly impacted by the wildfires.

  • Reporting requirements

    • GO-Biz must submit a report to the Legislature detailing allocations and expenditures.
    • Report content includes:
    • Number of businesses assisted
    • Types of assistance provided
    • Assessment of impact on recovery
    • Detailed accounting of allocations and impact of SB-TAP and CIP
    • Compliance with Section 9795 reporting requirements

  • Sunset and renewal

    • The act remains in effect until January 1, 2031, at which time it is repealed.

  • Legislative mechanics

    • Declares findings and necessity for a special statute due to unique wildfire-related circumstances.
    • This is an urgency statute, taking effect immediately.
    • The bill is subject to a two-thirds vote for enactment (as indicated by the urgency and appropriation provisions).

Who is affected

  • Primary beneficiaries: small businesses directly affected by the January 2025 wildfires in Los Angeles and Ventura Counties.
  • Indirect beneficiaries: employees of those affected businesses.
  • Programs involved: CIP and SB-TAP administered through OSBA/GO-Biz.
  • State government: GO-Biz/OSBA administers the fund and reports to the Legislature.

Timing and procedural notes

  • Introduced: February 14, 2025
  • Referred to Committee: March 3, 2025 (Economic Development, Housing, and Intergovernmental Affairs/related committees)
  • Immediate effect: Yes (urgency statute)
  • Sunset: January 1, 2031
  • Fiscal reporting: Requires standard reporting aligned with Section 9795

Potential impact

  • Provides a dedicated $50 million infusion to accelerate recovery for affected small businesses.
  • Enhances capacity of CIP and SB-TAP to deliver targeted support (capital infusion, technical assistance, wraparound services).
  • Establishes an employee relief mechanism to address workforce impacts.
  • Creates formal accountability through mandated legislative reporting on outcomes and fund usage.

Compiled from official sources — confirm details with the bill’s official record.

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