California Legislature—2015–16 Regular Session

Assembly Bill No. 184

Introduced by Assembly Member Eduardo Garcia

January 26, 2015

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 184, as introduced, Eduardo Garcia. Small Business Technical Assistance Act of 2015.

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. The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the 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 2015, 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, the Women’s Business Center program, the Veteran Business Outreach Center program, the Service Corps of Retired Executives (SCORE), and the Procurement Technical Assistance Cooperative Agreement program. The bill would also recognize those federal programs, and would authorize GO-Biz or any other state entity to contract with a federal small business technical assistance center. The bill would require the State Chair of the California Small Business Development Center Leadership Council, or the contract lead for any of the other federal small business technical assistance centers, to report specific information to GO-Biz relating to any year that state funds are appropriated to support the California Small Business Development Center Program or any of the other federal small business technical assistance center programs, and would, in turn, require the director of GO-Biz or the contract lead for any of the other small business technical assistance centers to provide that report to the Legislature and post the report on the GO-Biz’s Internet Web site. The bill would also require the state chair, as a condition of accepting state funds, to allow access to other information about those federal programs under certain conditions. The 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 begin insert , without regard to fiscal year, end insert to provide
begin delete matching end delete funds for loans begin insert , matching funds, end insert 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
2015

 

63100.  

This chapter shall be known, and may be cited, as the
Small Business Technical Assistance Act of 2015.

63105.  

The Legislature finds and declares all of the following:

(a) 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
Veteran Business Outreach Center Program, and the Service Corps
of Retired Executives (SCORE). The Department of Defense also
funds and operates the Procurement Technical Assistance
Cooperative Agreement program through contracts with nonprofit
organizations in California. 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.

(b) (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.

(3) 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.

(4) 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.

(c) (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.

(3) California’s network of women’s business centers include:
Anew America Women’s Business Center/Anew America
Community Corporation (Berkeley); Mendocino Women’s
Business Center West Company (Fort Bragg); Asian Pacific
Islander Small Business Program WBC/LTSC Community
Development Corp. (Los Angeles); PACE Women’s Business
Center/Pacific Asian Consortium Employment (Los Angeles);
University Enterprises Corporation at CSUSB - (Coachella Valley);
California Capital Financial Development Corporation
(Sacramento); Inland Empire Women’s Business Center University
Enterprise Corp. at California State University, San Bernardino
(San Bernardino); Renaissance Entrepreneurship Center (San
Francisco); Women Business Partners Program Mission
Community Services Corp. (San Luis Obispo); Women’s Economic
Ventures (Santa Barbara); and Valley Economic Development
Center (Sherman Oaks).

(d) The Veteran Business Outreach Center program in California
is one of only four in the United States. The Veteran Business
Outreach Center program 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 Veteran 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. The Veteran Business Outreach Center program offers
outreach through its network of related nonprofit veteran service
centers in the California Cities of Santa Rosa, Eureka, Menlo Park,
and Redding, and in Reno, Nevada.

(e) (1) The Service Corps of Retired Executives (SCORE) is
managed by the SCORE Association “Counselors to America’s
Small Business” and is organized as a nonprofit association
comprised of over 13,000 volunteer business counselors working
in 348 SCORE chapters throughout the United States and its
territories. SCORE members are trained to serve as counselors,
advisors, and mentors to aspiring entrepreneurs and business
owners. Services are offered at no fee, as a community service.
SCORE was formed in 1964 and nearly 10 million Americans
have utilized SCORE services.

(2) SCORE is a resource partner with the Small Business
Administration. The Small Business Administration administers
a congressional grant, which provides SCORE with funding.
SCORE volunteers work with the Small Business Administration
and small business development centers to provide small business
mentoring and training to entrepreneurs through the Small Business
Administration and small business development center offices.
There are 19 SCORE offices in California, as well as a range of
online services.

(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 structured to
reflect the needs, priorities, and resources of the areas they serve.
Some procurement technical assistance centers are administered
directly by state governments; others partner with universities,
community colleges, local economic development corporations,
or other local institutions. Some procurement technical assistance
centers operate within Bureau of Indian Affairs areas and serve
exclusively Native American-owned businesses. Many are affiliated
in some way with small business development centers and other
small business programs.

(4) 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.

63110.  

The following definitions apply for the purposes of this
chapter:

(a) (1) “Small Business Act of Congress” refers to the act of
Congress signed into law on July 2, 1980, entitled “The Small
Business Development Center Act of 1980” (Public Law 96-302)
which authorized the Small Business Development Center Program,
operated by the Small Business Administration.

(2) “Women’s Business Act of Congress” refers to the act of
Congress signed into law in 1988, entitled the “Women’s Business
Ownership Act of 1988” (Public Law 100-533), operated by the
Small Business Administration.

(3) “Veteran’s Business Act of Congress” refers to the act of
Congress described in Section 657b of Title 15 of the United States
Code governing the Veteran Business Outreach Center, operated
by the Small Business Administration.

(4) “SCORE Act of Congress” refers to the act of Congress
described in Section 637 of Title 15 of the United States Code
governing the Service Corps of Retired Executives (SCORE),
operated by the Small Business Administration.

(5) “Procurement Act of Congress” refers to the act of Congress
described in Chapter 142 (commencing with Section 2411) of Part
IV of Subtitle A of Title 10 of the United States Code governing
the Procurement Technical Assistance Cooperative Agreement
program, operated by the Department of Defense.

(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, a Women’s Business
Center, the Veteran Outreach Center, and a Procurement Technical
Assistance Center, that 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) “Regional Network of Women’s Business Centers” refers
to the Women’s Business Centers. There are 11 California Regional
Small Business Development Center Networks.

(k) “Regional Network of SCORE” refers to the Service Corps
of Retired Executives, which are administered pursuant to a
congressional grant and guidelines from the federal Small Business
Administration. There are 19 SCORE centers in California located
in Bakersfield, Capitola, Chico, Citrus Heights, Fresno, Glendale,
Modesto, Monterey, Oakland, Oxnard, Palm Desert, Riverside,
San Diego, San Francisco, San Jose, San Luis Obispo, Santa Ana,
Santa Rosa, and Sonora.

(l) “Regional Network of Procurement Technical Assistance
Centers” refers to procurement technical assistance centers, which
are administered pursuant to guidelines from the United States
Department of Defense.

(m) “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.

(n) “Federal small business technical assistance centers” means
a Small Business Development Center, a Women’s Business
Center, the Veteran Business Outreach Center, a SCORE center,
and a Procurement Technical Assistance Center that operate in
California under federal contracts.

(o) The “Women’s Business Center” refers to an individual,
physical location, recognized by the federal Small Business
Administration 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.

(p) The “Veteran’s Business Center” refers to an individual,
physical location, recognized by the federal Small Business
Administration where 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.

(q) “SCORE” refers to an individual, physical location,
recognized by the federal Small Business Administration where a
small business owner or an aspiring entrepreneur can receive free
mentoring and attend workshops on a variety of topics including
starting, operating, and expanding a small business.

(r) The “Procurement Technical Assistance Center” refers to
an individual, physical location, recognized by the United States
Department of Defense where a small business owner can receive
free training on a variety of state and federal procurement issues.

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 Women’s Business
Center program, the Veteran Business Outreach Center program,
the Service Corps of Retired Executives (SCORE), and the
Procurement Technical Assistance Cooperative Agreement
program. The office may collaborate with and support federal
small business technical assistance centers in the provision of
technical assistance and other related services to small businesses
through their regional networks of centers.

(b) The office or any other state entity may contract with a
federal small business technical assistance center. If a contract is
entered into and money is exchanged for services, the federal small
business technical assistance center shall report on those activities
as specified in Section 63125.

(c) (1) Any public or private corporation authorized to establish,
operate, and maintain a small business development center whose
application is granted pursuant to the terms of the Small Business
Act of Congress may establish, operate, and maintain the center
subject to the conditions and restrictions of the Small Business
Act of Congress, and any amendments thereto.

(2) Any public or private corporation authorized to establish,
operate, and maintain a Women’s Business Center whose
application is granted pursuant to the terms of the Women’s
Business Act of Congress may establish, operate, and maintain
the center subject to the conditions and restrictions of the Women’s
Business Act of Congress, and any amendments thereto.

(3) Any public or private corporation authorized to establish,
operate, and maintain a Veteran’s Business Center whose
application is granted pursuant to the terms of the Veteran’s
Business Act of Congress may establish, operate, and maintain
the center subject to the conditions and restrictions of the Veteran’s
Act of Congress, and any amendments thereto.

(4) Any public or private corporation authorized to establish,
operate, and maintain a SCORE center whose application is granted
pursuant to the terms of the SCORE Act of Congress may establish,
operate, and maintain the center subject to the conditions and
restrictions of the SCORE Act of Congress, and any amendments
thereto.

(5) Any public or private corporation authorized to establish,
operate, and maintain a Procurement Technical Assistance Center
whose application is granted pursuant to the terms of the
Procurement Act of Congress may establish, operate, and maintain
the center subject to the conditions and restrictions of the
Procurement Act of Congress, and any amendments thereto.

63120.  

The state recognizes that the federal small business
technical assistance center programs, administered by the federal
Small Business Administration and the United States Department
of Defense through a network of nonprofit service providers, offer
a range of services that benefit California small businesses
including the following:

(a) (1) The state recognizes that the Small Business
Development Center may, pursuant to the Small Business Act of
Congress, on January 1, 2014, offer a range of services, including,
but not limited to:

(A) 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.

(B) 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.

(C) 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.

(D) Conducting regional and local workshops, seminars, and
conferences with local partners to meet the needs of small business
clients.

(E) 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.

(F) Assisting with the commercialization of technology products
or services and with the preparation of raising funds.

(G) Providing assistance to high growth and highly scalable
businesses and entrepreneurs seeking angel and venture capital by
preparing and positioning them for funding.

(H) Coordinating with employee training and placement
programs.

(I) Providing market research and planning assistance to local,
regional, and statewide economic development partners, projects,
and collaborations.

(J) Gathering, analyzing, and maintaining information on the
economic impact of business assistance provided by the Small
Business Development Center and other organizations.

(2) 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 Small Business Act of Congress.

(3) In accordance with the Small Business 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.

(b) (1) The state recognizes that the Women’s Business Centers
may, pursuant to the Women’s Business Act of Congress, offer a
range of services, including, but not limited to:

(A) Offering financial assistance on how to prepare a loan
package and secure business credit from public and private lending.

(B) Providing marketing assistance, including how to increase
a business’s capacity to prepare and execute marketing plans;
developing pricing, packaging, and distribution strategies; and the
effective use of public relations, networking, and advertising
techniques.

(C) Offering export assistance in cooperation with the Small
Business Administration’s Office of International Trade, the United
States Department of Commerce, and other relevant federal
programs.

(D) Providing additional specialized assistance, including issues
related to home-based businesses, legal matters, accounting, rural
business, agribusiness, construction, child care, elder care,
manufacturing, procurement, web development, business expansion
and franchising, or international trade, business programs helpful
to veterans, people seeking to get off welfare, people with
disabilities, and other subcategories of issues concerning women
in business.

(2) In accordance with the Women’s Business Act of Congress,
the Women’s Business 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.

(c) The state recognizes that the Veteran’s Business Center may,
pursuant to the Veteran’s Business Act of Congress, offer a range
of services, including, but not limited to:

(1) Providing statewide small business consulting and workshops
for veteran owners of small businesses and veterans wishing to
start a small business.

(2) Offering transitional housing, which offers a safe
environment where veterans are supported in their efforts to
overcome a variety of obstacles. The agency has up to 100
transitional beds in operation.

(3) Offering a network of services so veterans are connected to
employment and training programs, counseling, and legal services.

(4) Offering comprehensive employment placement services
by providing clients with job leads, resume preparation,
informational resources, and interview preparation.

(5) Operating a 22-bed alcohol/drug social recovery model
project established in 2005.

(d) The state recognizes that SCORE may, pursuant to the
SCORE Act of Congress, offer a range of services, including, but
not limited to:

(1) Serving as counselors, advisors, and mentors to aspiring
entrepreneurs and business owners.

(2) Offering online and in-person workshops on management,
marketing, e-commerce, selling your business, accessing capital,
and intellectual property.

(e) The state recognizes that the Procurement Technical
Assistance Centers may, pursuant to a Procurement Act of
Congress, offer a range of services, including, but not limited to:

(1) Helping to determine business readiness for taking advantage
of government contracting opportunities.

(2) Securing the registrations that are necessary to participate
in the government marketplace, including the United States
government’s System for Award Management (SAM), the Small
Business Administration’s Dynamic Small Business Search, and
other government vendor databases.

(3) Obtaining key certifications to participate in the government
marketplace including Small Disadvantaged Business, 8(a)
Business Development Program, HUBzone, and other
certifications.

(4) Identifying which government offices and individuals are
most likely to need a business’s products and best ways to connect
with them.

(5) Researching government agency procurement histories.

(6) Hosting “matchmaking” events, which provide critical
opportunities to connect with agency buying officers, prime
contractors, and other businesses that may offer teaming or
subcontracting opportunities.

(7) Identifying bid opportunities and understanding solicitation
packages.

63125.  

(a) On or before August 30 following any year that
state funds are appropriated to federal small business technical
assistance centers for the support of the California Small Business
Development Center Program or any of the other federal small
business technical assistance center programs, the State Chair of
the California Small Business Development Center Leadership
Council, or the contract lead for any of the other federal small
business technical assistance centers as defined in Section 63110,
shall provide a written report to the office consistent with the
requirements of this section.

(b) Each Administrative Lead Center and each of the other
federal small business technical assistance centers 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 or any of the other federal
small business technical assistance centers 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) (1) The director or the contract lead for any of the other
small business technical assistance centers 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.

(2) This subdivision shall become inoperative on January 1,
2020, pursuant to Section 10231.5.