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AB-2463 Small Business Technical Assistance and Expansion Act of 2018.(2017-2018)

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Date Published: 06/07/2018 09:00 PM
AB2463:v97#DOCUMENT

Amended  IN  Senate  June 07, 2018
Amended  IN  Assembly  April 26, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2463


Introduced by Assembly Members Quirk-Silva and Cervantes
(Coauthors: Assembly Members Cooley and Eduardo Garcia)

February 14, 2018


An act to add and repeal Article 7 (commencing with Section 12100.60) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to economic development.


LEGISLATIVE COUNSEL'S DIGEST


AB 2463, as amended, Quirk-Silva. Small Business Technical Assistance and Expansion Act of 2018.
Existing law, the Economic Revitalization Act, establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, under the control of a director. Existing law requires GO-Biz to serve the Governor as the lead entity for economic strategy and authorizes it to undertake specified activities, including supporting small businesses by providing information about accessing capital, complying with regulations, and supporting state initiatives that support small business. Existing law also creates the California Economic Development Fund for the purpose of receiving federal, state, local, and private economic development funds and, upon appropriation by the Legislature, authorizes moneys in the fund to be expended by GO-Biz to provide matching funds for loans or grants to public agencies, nonprofit organizations, and private entities, and for other economic development purposes, consistent with the purposes for which the moneys were received.
This bill would create the California Small Business Technical Assistance and Expansion Program within GO-Biz, under the director, for the purpose of assisting small businesses through free or low-cost one-on-one counseling and low-cost training by entering into partnership grant agreements with one or more federal small business technical assistance centers, as defined, centers and providing grants to those centers. centers to expand the capacity of small business development technical assistance programs in California. This bill, upon appropriation of funds by the Legislature into the Small Business Technical Assistance and Expansion Account, which this bill creates within the California Economic Development Fund, would require the office to make grants to federal small business technical assistance centers. This bill would require the director to adopt regulations to implement the program. The bill would require any center completing a partnership agreement to provide a written report to the office containing specified information. This bill would make the program inoperative on March 30, 2025 and repealed repeal the program on January 1, 2026.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 7 (commencing with Section 12100.60) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  7. Small Business Technical Assistance and Expansion Act of 2018

12100.60.
 This article shall be known and may be cited as the Small Business Technical Assistance and Expansion Act of 2018.

12100.61.
 The Legislature finds and declares all of the following:
(a) Small businesses form the core of the California economy and it is in the interest of the state to increase opportunities for entrepreneurs, the self-employed, and microbusiness and small business owners to have better access to business and technical resources.
(b) The federal government funds and operates a range of technical assistance programs through contracts with nonprofit organizations who commit to serve and support small businesses in California, including the California Small Business Development Center Program, the Women’s Business Center Program, the Minority Business Development Agency Business Center Program, and the Veterans Business Outreach Center Program. All of these programs provide free and low-cost services to California small businesses. It is in the interest of the state to collaborate with these centers under the state role of helping to provide an economic environment in which small businesses can be successful, including participation in a seamless network of federal, state, and nonprofit programs, services, and activities that benefit small businesses.
(c) (1) The California Small Business Development Center Program plays a significant role in expanding and supporting California small businesses. There are more than 1,000 small business development centers in the United States and its territories, and there are over 30 small business development centers located in regions throughout California.
(2) The primary role of the California Small Business Development Center Program, a component of the federal Small Business Development Center Program, is to provide technical assistance to the state’s small businesses, including tracking assistance and outcomes that result in a meaningful contribution to the California economy.
(d) (1) The Women’s Business Center Program plays a significant role in expanding and supporting California small businesses. The Women’s Business Center program was established to provide in-depth, substantive, outcome-oriented business services to women entrepreneurs, both nascent and established businesses, including a representative number of which are socially and economically disadvantaged.
(2) The Women’s Business Center Program meets its mission through the award of financial assistance to tax-exempt, private nonprofit organizations to enable them to effect substantial economic impact in their communities, as measured by successful business startups, job creation and retention, and increased company revenues.
(e) The Veterans Business Outreach Center Program in California plays an important role in meeting the unique needs of veterans in starting and operating businesses. The program is funded by the Small Business Administration’s veterans unit. The Veterans Business Outreach Center Program provides statewide small business consulting and workshops for veteran owners of small businesses, and veterans wishing to start a small business.
(f) (1) The Procurement Technical Assistance Cooperative Agreement program plays an important role in helping small business access public contract opportunities. The Procurement Technical Assistance Cooperative Agreement program was authorized by Congress in 1985 in an effort to expand the number of businesses capable of participating in the government marketplace.
(2) The Procurement Technical Assistance Cooperative Agreement program is administered by the Department of Defense. The program provides matching funds through cooperative agreements with state and local governments and nonprofit organizations for the establishment of procurement technical assistance centers to provide procurement assistance.
(3) Procurement technical assistance centers are staffed with counselors experienced in government contracting and provide a wide range of services including classes and seminars, individual counseling, and easy access to bid opportunities, contract specifications, procurement histories, and other information necessary to successfully compete for government contracts.
(g) The Hollings Manufacturing Extension Partnership was established in the 1980’s as United States manufacturing began to lose ground to Japan. The United States faced key competitive challenges in consumer electronics, steel, and other industries. United States goods production processes were deemed comparatively outdated and innovation stagnated. The program is administered by the National Institute of Standards and Technology.
(h) The Minority Business Development Agency Business Center Program provides a range of services to minority-owned businesses seeking to expand to new markets, both foreign and domestic, as well as a wide range of technical assistance and business services, including business consulting, private equity, and venture capital opportunities, facilitating joint ventures, and strategic partnerships.

12100.62.

Unless the context otherwise requires, the definitions in this section shall govern the construction of this article.

(a)“Administrative lead center” means the entity with which the federal Small Business Administration contracts with to administer the Small Business Development Center Program, authorized pursuant to the Small Business Development Center Act of 1980 (15 U.S.C. 648), within a state or district and that is directly accountable to the federal Small Business Administration for all aspects of the small business development center, including staffing, program, outreach, and securing the required one-to-one match to draw down federal funds to operate the program in the administrative lead center’s area of responsibility. The California Small Business Development Center Leadership Council may apply for grants under this article for administrative lead centers in California.

(b)“California Small Business Development Center Program” is comprised of the five regional networks of small business development centers operating in the state pursuant to a cooperative agreement between the administrative lead centers and the federal Small Business Administration.

(c)“Director” means the Director of the Governor’s Office of Business and Economic Development.

(d)“Federal small business technical assistance centers” means an administrative lead center, a women’s business center, a veterans business outreach center, a manufacturing extension partnership center, a minority business development center, and a procurement technical assistance center that operate in California under federal contracts.

(e)“Manufacturing extension partnership center” means a California contractor recognized by the federal National Institute of Standards and Technology pursuant to the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418), at which small manufacturers can obtain information and assistance on new technology acceleration, supply chain management, lean processing, export development, sustainable manufacturing practices, and other issues related to innovation.

(f)“Minority business development center” means a center designated through the Minority Business Development Agency of the United States Department of Commerce that promotes the growth of minority-owned businesses through the mobilization and advancement of public and private sector programs, policy, and research.

(g)“Office” means the Governor’s Office of Business and Economic Development.

(h)“Procurement technical assistance center” means an entity or physical location, recognized by the United States Department of Defense for purposes of the Procurement Technical Assistance Cooperative Agreement Program (Chapter 142 (commencing with Section 2411) of Part IV of Subtitle A of Title 10 of the United States Code), at which a small business owner may receive free training on a variety of local, state, and federal procurement issues.

(i)“Program” means the California Small Business Technical Assistance and Expansion Program created pursuant to Section 12100.63 and administered in accordance with this article.

(j)“Small business development center” refers to an individual physical location, recognized by the federal Small Business Administration and overseen by the administrative lead center, at which a small business owner or an aspiring entrepreneur can receive free one-on-one consulting and low at-cost training on a variety of topics including starting, operating, and expanding a small business.

(k)“Veterans business center” means an individual, physical location, recognized by the federal Small Business Administration for the purposes specified in Section 657b of Title 15 of the United States Code, at which a small business veteran owner or an aspiring veteran entrepreneur can receive free one-on-one consulting and low at-cost training on a variety of topics including starting, operating, and expanding a small business.

(l)“Women’s business center” means an individual, physical location, recognized by the federal Small Business Administration for purposes of the Women’s Business Ownership Act of 1988 (Public Law 100-533), at which a small business owner or an aspiring entrepreneur can receive free one-on-one consulting and low at-cost training on a variety of topics including starting, operating, and expanding a small business.

12100.63.
 (a) The California Small Business Technical Assistance and Expansion Program is hereby created within the office.
(b) The program shall be under the direct authority of the director.
(c) (1)The purpose of the program is to assist small businesses through free or low-cost one-on-one counseling and low-cost training by entering into partnership grant agreements with one or more of the federal small business technical assistance centers and providing grants to those centers.
(d) In implementing the program, the director shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of small businesses in California.

(2)

(e) (1) An applicant pursuant to this article shall be a federal small business technical assistance center operating as a group, including a regional or statewide network, or as an individual center.
(2) (A) A federal small business technical assistance center operating as a group consisting of centers organized under a coordinating administrative or fiscal entity shall apply by submitting a single consolidated application to the office.
(B) A federal small business technical assistance center operating as an individual center shall apply by submitting a single application for that center to the office.
(f) The office shall administer the program to provide grants to expand the capacity of small business development technical assistance programs in California, administered by and primarily funded by federal agencies, that provide one-on-one confidential counseling and training to small businesses and entrepreneurs in the state.

(3)

(g) A grant award application may be for one or multiple years, as determined by the office.

(d)The director shall adopt regulations that are consistent with the purpose and requirements of this article.

(e)In implementing the program, the director shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of small businesses in California.

(h) The requested funding amount for an award shall not exceed the lesser of the total dollars specified in the contract with the federal funding partner or twenty-five thousand dollars ($25,000).
(i) An applicant shall have a fiscal agent that is able to receive nonfederal funds.

12100.65.
 (a) Upon appropriation of funds by the Legislature for the purpose of implementing this article, the office shall make grants to federal small business technical assistance centers, consistent with the regulations developed pursuant to subdivision (d) requirements of Section 12100.63.
(b) Unless otherwise specified, all moneys appropriated for the purpose of this article shall be deposited in the Small Business Technical Assistance and Expansion Account, which is hereby created within the California Economic Development Fund created pursuant to Section 13997.6.

12100.67.

(a)No more than 60 days following the completion of a partnership agreement, the federal small business technical assistance center shall provide a written report to the office consistent with the requirements of this section and in a form prescribed by the office.

(b)Each federal small business technical assistance center shall accept the reporting requirement in this section as a condition of receiving the grant.

(c)The report prepared pursuant to subdivision (a) shall include, but not be limited to, all of the following data:

(1)Number of businesses assisted.

(2)The amount of funds awarded.

(3)The size of businesses assisted, based on the number of employees at the time those businesses were assisted, as reported by the assisted businesses. Reporting shall be in categories of business size, as determined by the office.

(4)The city and county in which the assisted businesses are located.

(5)Industry sectors of the assisted businesses, as reported by the assisted businesses.

(6)Other program- and performance-based information, as determined by the office.

(d)The director shall include the outcome of the program’s activities within the annual report of the Office of the Small Business Advocate required by Section 12098.4.

12100.69.
 This article shall become inoperative on March 30, 2025, and, as of January 1, 2026, is repealed.