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JUN 4; 2010 Mr. Jay McIlrath -2- Claim No. 013882 Section 25299.52(b) of the H&SC states, in part, that the State Water Resources Control Board shall pay claims in accordance with the following order of priority: [Residential tank owners]. Owners and operators of tanks that are either of the following: An owner or operator of a tank that is a small business, by meeting the requirements of subdivision (d) of Section 14837 of the Government Code. An owner or operator that meets that definition of small business, but who is domiciled or has its principal office outside of the state, shall be classified in this category if the owner or operator otherwise meets the requirements of subdivision (d) of Section 14837 of the Government Code with regard to the number of employees and the total annual revenues received. An owner or operator that is a city, county, district, or nonprofit organization that receives total annual revenues of not more than seven million dollars ($7,000,000). In determining the amount of a non-profit organization's annual revenues, the board shall calculate only those revenues directly attributable to the particular site at which the tank or tanks for which the claim is submitted are located. . . . Government Code Section 14837(d) defines "small business," in relevant part, as: (d)(1) "Small business" means an independently owned and operated business that is not dominant in its field of operation, . . . and that, together with affiliates, has 100 or fewer employees, and average annual gross receipts of ten million dollars ($10,000,000) or less over the previous three years, or is a manufacturer, as defined in subdivision (c), with 100 or fewer employees. The Small Business Regulations implement Government Code Section 14837(d) by establishing current small business standards. Section 1896.12(a), of the Small Business Regulations describes, in relevant part, the current qualifying criteria for small business certification as follows: (a) To be eligible for certification as a small business, a business must meet all of the following qualifying criteria: California Environmental Protection Agency R ecy cled Paper