California Code, Government Code - GOV § 8757

(a) “Adjusted gross revenue” means the average annual revenue received over the preceding three years, in whatever form, received or accrued from whatever source, excluding funds received pursuant to Section 8753.6 and excluding revenue earmarked by the grantor or donor solely for capital expenditures or any passthrough funds collected for the benefit of another organization that is received during the tax year of an organization.

(b) “Capital expenditures” means funds used by a company to acquire, upgrade, or maintain fixed assets, including property, plants, buildings, technology, or equipment.

(c) “Fiscally sponsored performing arts organization” means a performing arts organization that is fiscally sponsored under a Model C contract by a nonprofit organization that is exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code,  1 and the performing arts organization's primary mission is the creation of or presentation of performing arts.

(e) “Office” means the Office of Small Business Advocate within the Governor's Office of Business and Economic Development pursuant to subdivision (b) of Section 12098, unless stated otherwise.

(f) “Payroll expenses” means wages paid to employees, payroll taxes, workers' compensation, unemployment insurance, paymaster fees, and pension, health, and welfare contributions.

(g) “Performing arts” means the types of arts that are performed live for a remote or in-person audience, including, but not limited to, music, dance, and drama.

(h) “Small nonprofit performing arts organization” means a nonprofit performing arts organization, or a Model C fiscally sponsored performing arts organization, with an adjusted gross revenue equal to or less than two million dollars ($2,000,000). The office shall adjust this amount every five years using the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.