BILL NUMBER: AB 2670 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Medina
FEBRUARY 21, 2014
An act to amend Section 13997.6 of, and to add Chapter 7
(commencing with Section 63100) to Division 1 of Title 6.7 of, the
Government Code, relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2670, as introduced, Medina. Small Business Technical
Assistance Act of 2014.
The Economic Revitalization Act establishes the Governor's Office
of Business and Economic Development, also known as "GO-Biz," to
serve the Governor as the lead entity for economic strategy and the
marketing of California on issues relating to business development,
private sector investment, and economic growth. Bergeson-Peace
Infrastructure and Economic Development Bank Act establishes the
California Infrastructure and Economic Development Bank within GO-Biz
to, among other things, assist in the promotion of economic
development throughout the state.
This bill would enact the Small Business Technical Assistance Act
of 2014, within the bank under the direction of GO-Biz to, among
other things, serve as the lead state entity for overseeing the state'
s participation with the federal California Small Business
Development Center Program. This act would also recognize the federal
program. This act would authorize GO-Biz or any other state entity
to contract with an Administrative Lead Center established under the
federal program. This act would require the State Chair of the
California Small Business Development Center Leadership Council,
established under the federal program, to report specific information
to GO-Biz relating to any year that state funds are appropriated to
support an Administrative Lead Center, and would, in turn, require
the director of GO-Biz to provide that report to the Legislature and
post the report on the GO-Biz's Internet Web site. This bill would
also require the state chair, as a condition of accepting state
funds, to allow access to other information about the program under
certain conditions. This bill would make legislative findings and
declarations in this regard.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13997.6 of the Government Code is amended to
read:
13997.6. (a) The California Economic Development Fund is hereby
created in the State Treasury for the purpose of receiving federal,
state, local, and private economic development funds, and receiving
repayment of loans or grant proceeds and interest on those loans or
grants.
(b) Upon appropriation by the Legislature, moneys in the fund may
be expended by the Governor's Office of Business and Economic
Development , without regard to fiscal year, to provide
matching funds for loans , matching funds,
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.
SEC. 2. Chapter 7 (commencing with Section 63100) is added to
Division 1 of Title 6.7 of the Government Code, to read:
CHAPTER 7. SMALL BUSINESS TECHNICAL ASSISTANCE ACT OF 2014
63100. This chapter shall be known, and may be cited, as the
Small Business Technical Assistance Act of 2014.
63105. The Legislature finds and declares all of the following:
(a) 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.
(b) 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.
(c) Within the state, the California Small Business Development
Center Program is administered through six Regional Small Business
Development Center Networks, as follows: Northern California;
Northeastern California; Central California; Orange County/Inland
Empire; Los Angeles; and San Diego. Each regional network is managed
by an Administrative Lead Center, designated by the federal Small
Business Administration through a cooperative agreement, and
affiliated with one public institution of higher education. The
centers are responsible for securing required one-to-one matching
funds to draw down federal appropriations, according to a
population-based formula determined by the United States Census, and
the regional networks are held accountable for their productivity and
required to submit regular performance reports to the Office of
Small Business Development Centers, within the federal Small Business
Administration.
(d) Throughout the six regional networks there are more than 30
full-time Small Business Development Centers, with multiple
additional outreach locations serving small businesses in this state.
These centers provide assistance to existing businesses in the areas
of financing, government contracting, business planning and
management, marketing, international trade, energy efficiency and
sustainability, and disaster preparedness. The centers also provide
expert advice to technology companies in the areas of business and
financial plan preparation, angel and venture capital presentation
preparation, funding strategies, product positioning, market launch
strategies, applications for federal grants, technology transfers
with research universities, intellectual property issues, and
strategic partnerships. The centers work in collaboration with
various partners to provide these services, including, but not
limited to, the federal Small Business Administration, the United
States Department of Commerce, the United States Department of
Agriculture, the Governor's Office of Business and Economic
Development, the California Innovation Hub Program, the California
Community Colleges, the California State University, the University
of California, local workforce investment boards, economic
developers, cities, counties, and chambers of commerce.
63110. The following definitions apply for the purposes of this
chapter:
(a) "Act of Congress" refers to the act of Congress signed into
law on July 2, 1980, entitled "The Small Business Development Act of
1980" (Public Law 96-302) which authorized the Small Business
Development Center program, operated by the Small Business
Administration.
(b) "Administrative Lead Center" means the entity with which the
federal Small Business Administration contracts with to administer
the Small Business Development Center Program within a state or
district. The Administrative Lead Center is directly accountable to
the 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.
(c) The "California Small Business Development Center Program" is
comprised of the six 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.
(d) "California Small Business Development Center Leadership
Council" refers to the entity that is comprised of the directors of
the Administrative Lead Centers that coordinate the regional networks
of small business development centers. The council is the statewide
entity tasked with negotiating partnerships on behalf of the
California Small Business Development Center Program, leveraging
operational and technical assistance for best practices across the
six regions, and working with the state government to maximize the
economic impact of the federal Small Business Development Center
Program within the state.
(e) "Director" means the Director of the Governor's Office of
Business and Economic Development.
(f) "Federal match" means the money committed to the operations of
the regional network of Small Business Development Centers by an
Administrative Lead Center, which have come from a nonfederal
government source of moneys. The federal match is used to draw down
moneys from the federal Small Business Administration.
(g) "Office" means the Governor's Office of Business and Economic
Development.
(h) "Regional Directors" refers to the highest level personnel
charged with management and oversight of a regional network of Small
Business Development Center Networks, and who are employed by the
Administrative Lead Centers pursuant to guidelines from the federal
Small Business Development Center. There are six Regional Director
positions in California.
(i) "Regional network of Small Business Development Centers"
refers to the Small Business Development Centers which are
administered under a single Administrative Lead Center. There are six
California Regional Small Business Development Center Networks:
Northern California, Northeastern California, Central California,
Orange County/Inland Empire, Los Angeles, and San Diego.
(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, where
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.
63115. (a) The office shall serve as the lead state entity for
overseeing the state's participation with the California Small
Business Development Center Program. The office may collaborate and
support the Administrative Lead Centers in the provision of technical
assistance and other related services to small businesses through
their regional networks of Small Business Development Centers.
(b) The office or any other state entity may contract with an
Administrative Lead Center. If a contract is entered into and money
is exchanged for services, the Administrative Lead Center or centers
shall report on those activities as specified in Section 63125.
(c) Any public or private corporation authorized to establish,
operate, and maintain a small business development regional center
whose application is granted pursuant to the terms of the Act of
Congress may establish, operate, and maintain the center subject to
the conditions and restrictions of the Act of Congress, and any
amendments thereto.
63120. (a) The state recognizes that the Small Business
Development Center may, pursuant to the Act of Congress, on January
1, 2014, offer a range of services, including, but not limited to:
(1) Providing specialized one-on-one counseling and technical
assistance in the areas of financing, government contracting,
business planning and management, marketing, international trade,
energy efficiency, sustainability, and disaster preparedness for
small businesses with the greatest potential for job retention and
creation.
(2) Providing expert business startup advising, including legal
requirements for starting a business and access to capital for small
businesses and entrepreneurs with the greatest potential to start
companies and provide jobs within California.
(3) Providing commercialization assistance to new and emerging
technology companies in the areas of business and financial plan
preparation, angel and venture capital presentation preparation,
funding strategies, product positioning, market launch strategies,
application for Small Business Innovation Research and Small Business
Technology Transfer federal grants, technology transfer to and from
research universities, intellectual property issues, and strategic
partnerships.
(4) Conducting regional and local workshops, seminars, and
conferences with local partners to meet the needs of small business
clients.
(5) Providing services to link small businesses to research and
development institutions for the purposes of transferring new
technology to a new or an expanding small business.
(6) Assisting with the commercialization of technology products or
services and with the preparation of raising funds.
(7) Providing assistance to high growth and highly scalable
businesses and entrepreneurs seeking angel and venture capital by
preparing and positioning them for funding.
(8) Coordinating with employee training and placement programs.
(9) Providing market research and planning assistance to local,
regional, and statewide economic development partners, projects, and
collaborations.
(10) Gathering, analyzing, and maintaining information on the
economic impact of business assistance provided by the Small Business
Development Center and other organizations.
(b) The Administrative Lead Center is responsible for oversight,
management, and compliance of the Small Business Development Centers
in its geographic region, in accordance with state law and the Act of
Congress.
(c) In accordance with the Act of Congress, the California Small
Business Development Center program is required to provide a federal
match of at least one-to-one with nonfederal funds, and is thus
authorized to receive grants, gifts, and other sources of funds to
support its mission.
63125. (a) On or before August 30 following any year that state
funds are appropriated to an Administrative Lead Center for the
support of the California Small Business Development Center Program,
the State Chair of the California Small Business Development Center
Leadership Council shall provide a written report to the office
consistent with the requirements of this section.
(b) Each Administrative Lead Center shall agree to the reporting
requirement in this section as a condition of receiving state funds.
As a further condition for receiving state funds, the State Chair of
the California Small Business Development Center Leadership Council
shall arrange to provide the office with access to similar
information, in both a similar timeframe and format, that an
Administrative Lead Center may provide to the federal Small Business
Administration on client services and the economic impact of the
California Small Business Development Center Program. Information
provided to the office shall meet applicable privacy standards and
shall not disclose the name of an individual business.
(c) A report prepared pursuant to subdivision (a) shall include,
but not be limited to, all of the following data:
(1) Number of businesses assisted.
(2) Number of employees employed by those businesses at the time
those businesses were assisted.
(3) Number of jobs created.
(4) Number of jobs retained.
(5) Estimated amount of state tax dollars generated from those
businesses.
(6) Industry sectors of the businesses assisted, as reported by
the assisted businesses.
(7) Increase in sales reported by businesses assisted as a result
of the program.
(8) The amount of capital infusion, in both debt and equity,
obtained by assisted businesses.
(9) Total amount of federal funds allocated to the region during
the reporting period.
(d) The director shall submit a copy of the report required
pursuant to subdivision (a) to the Legislature in compliance with
Section 9795 and post the report on the office's Internet Web site no
later than 30 days after the office receives the report.