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AB 265

Revises provisions relating to water. (BDR 48-887)

2025 Regular Session Introduced by Rich DeLong and 2 co-sponsors

Creates a Small Business Recovery Fund to provide competitive grants (2,500 to 100,000) and targeted assistance to California small businesses affected by emergencies.

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 265

AB 265 — Summary

Note on source material: The documents provided contain two different AB 265 texts. The primary, repeatedly appearing text is a California bill establishing a Small Business Recovery Fund (author: Caloza). A separate “As Introduced” text (different jurisdiction and subject matter) concerns revisions to water permitting procedures (NRS / Nevada draft). Below is a comprehensive summary of the California Small Business Recovery Fund Act (the dominant text in the record), followed by a brief note summarizing the unrelated water‑related provisions that appear elsewhere in the packet.

I. Small Business Recovery Fund Act (California AB 265 — Caloza)

Purpose and intent

Establishes, upon legislative appropriation, a Small Business Recovery Fund administered by the Office of Small Business Advocate (OSBA) within GO‑Biz to provide competitive recovery grants and related assistance to small businesses directly impacted by gubernatorial or local emergency proclamations (including natural disasters and other emergencies). The Act aims to support recovery, rebuilding, and investments in resilient infrastructure and to improve long‑term business viability after disasters.

Key provisions

  • Creates the Small Business Recovery Fund in the State Treasury (funding only upon appropriation by the Legislature).
  • Funding allocation:
    • 90% of appropriated funds to a competitive Small Business Recovery Grant Program.
    • 5% to the Small Business Technical Assistance Program (grants to technical assistance centers serving disaster areas).
    • 5% to the Capital Infusion Program (to support capital‑related technical assistance in disaster areas).
  • Grant program specifics:
    • Grants awarded competitively in amounts from $2,500 to $100,000.
    • Grantees must provide a dollar‑for‑dollar match for the grant; match may include insurance proceeds, SBA (or other small‑business) recovery loans, or in‑kind contributions.
    • Uses allowed: recovery/rebuilding costs, resilient infrastructure investments (e.g., infrastructure upgrades, relocating equipment, business relocation, additional insurance), and costs to reopen and remain viable.
    • Retroactive reimbursement allowed with adequate documentation for qualifying work already performed.
    • Preference in award selection to applicants who have received technical assistance through the Small Business Technical Assistance Program.
    • Potential rating criteria include viability of recovery plan, ability to match funds, and long‑term impact.
  • Eligibility and exclusions:
    • Applicants must meet qualifications: current on state payroll/sales/income taxes (as applicable); not the subject of an order for relief in bankruptcy as of the disaster date; have not permanently ceased operations; not barred from receiving federal/state funds.
    • Ineligible recipients include foundations/charitable trusts, gambling establishments, adult entertainment establishments, hospitals or nursing facilities, and rental property businesses.
  • Equity intent: Legislative direction to prioritize outreach/assistance to small businesses owned by ethnic minorities, women, and other disenfranchised groups.
  • Reporting & evaluation:
    • OSBA Director must prepare and submit a report to the Legislature on results of grant funding for each state of emergency covered.
    • Legislature intends periodic evaluation and possible additional appropriations as needed.
  • Sunset: The Act (Small Business Recovery Fund) is set to be repealed on January 1, 2032.

Who is affected

  • Directly: California small businesses (per Section 14837 definition) damaged or disrupted by Governor‑declared or local emergencies that meet eligibility.
  • Indirectly: small business technical assistance centers; GO‑Biz/OSBA (administration and reporting duties); recipients of Capital Infusion technical assistance.
  • Excluded entities listed above would not be eligible.

Fiscal and procedural notes

  • The program requires an appropriation by the Legislature to become operational.
  • Fiscal report indicators: "Fiscal Committee: YES"; "Appropriation: NO" in digest (meaning the bill itself does not appropriate money).
  • Legislative history (selected): Passed both houses (roll calls noted), enrolled and presented to the Governor 9/24/2025; vetoed by the Governor on 10/11/2025.

II. (Unrelated) Water‑Related Provisions — Alternate “AB 265” (As Introduced, appears to be NRS / Nevada draft)

The packet also includes an “As Introduced” text that revises provisions relating to water and the State Engineer (NRS/Title 48 style). Key provisions in that draft include:
- Requirement that the Division of Water Resources notify applicants if a committee is assigned to review their permit/change application, and set committee review deadlines (30 days if no protest; 60 days if protests were filed).
- Deadlines for the State Engineer to approve or deny extension requests (30 days).
- Faster processing for certain nonconsumptive use applications (approve/reject within 30 days if no protests).
- Deadlines for review of reports of conveyance (14 days).
- Requirement that the State Engineer issue permits within 14 days after receiving applicable fees.
- Notice requirements to permit holders before cancellation: notify at least 30 days before date set for completion/application to beneficial use.

Note: This water‑related text appears to be from another jurisdiction (Nevada / NRS references) and is not consistent with the California Small Business Recovery Fund Act described above.

If you want, I can:
- Produce a one‑page fact sheet for small businesses explaining eligibility and how to apply (based on the Recovery Fund provisions); or
- Produce a focused summary just of the water‑related draft (including crosswalk to current NRS sections).

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

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