BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                        AB 184


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       Date of Hearing:  April 21, 2015


          ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY


                                Eduardo Garcia, Chair


       AB 184  
       (Eduardo Garcia) - As Introduced January 26, 2015


       SUBJECT:  Small Business Technical Assistance Act of 2015


       SUMMARY:  Recognizes the importance of the federal small business  
       technical assistance programs and designates the Governor's Office of  
       Business and Economic Development (GO-Biz), as the lead state entity  
       for overseeing the state's participation and collaboration with the  
       specified federal programs.    Specifically, this bill:  


       1)Makes findings and declarations on, among other things, the  
         importance of the federal small business technical assistance  
         programs in expanding and supporting California's small businesses. 

       2)Defines the federal small business technical assistance centers to  
         include:  

          a)   The Small Business Development Centers (SBDC), 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.  The California SBDC Program is administered through  
            six regional networks of SBDCs which operate under a contract  
            between the six Administrative Lead Centers and the federal Small  
            Business Administration (SBA).  The Administrative Lead Center is  
            the entity which the federal government contracts with and is  








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            directly accountable for all aspects of the California SBDC  
            Program including staffing, program outreach, and securing the  
            required federal match.

          b)   Women's Business Centers, designated by the SBA, delivers  
            business training, coaching, mentoring and other assistance  
            geared toward women, particularly those who are socially and  
            economically disadvantaged.

          c)   SCORE, sponsored by the SBA, is a national network of over  
            14,000 entrepreneurs, business leaders, and executives who  
            volunteer as mentors to America's small businesses.

          d)   Veteran Business Outreach Center, designated by the SBA,  
            delivers entrepreneurial development services to eligible  
            veterans owning or considering starting a small business.

          e)   Procurement Technical Assistance Centers, designated by the  
            federal Department of Defense, offer training on how to contract  
            with federal, state, and local governments 

       3)Codifies the existence of five federally designated small business  
         technical assistance center programs and grants them all rights and  
         responsibilities as authorized under federal law.

       4)Recognizes that the federal small business technical assistance  
         centers offer a range of services including, but not limited to,  
         providing specialized counseling and technical assistance, offering  
         expert start-up business advising, commercialism assistance,  
         mentoring, conducting workshops and seminars, and coordinating  
         employee training and placement programs.

       5)Requires GO-Biz to serve as the lead state entity for overseeing the  
         state's participation with the California small business technical  
         assistance center programs.   

       6)Authorizes GO-Biz and other state entities to contract with any of  
         the federal small business technical assistance centers.  









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       7)Requires annual reporting on any activities that are the result of  
         state funds being contributed to one or more of the small business  
         technical assistance centers, including, the number of businesses  
         assisted, number of jobs created and retained as a result of  
         assistance, estimated amount of tax dollars generated, increase in  
         sales reported as a result of the assistance, the amount of capital  
         infusion obtained by the assistance, and the amount of total federal  
         funds allocated to each region.  For general tracking purposes,  
         these reports are also required to provide information on the  
         businesses assisted including industry sector and size of the  
         business based on employment.  Sunsets the reporting requirements on  
         January 1, 2020.

       EXISTING LAW:

       1)Establishes GO-Biz within the Governor's Office for the purpose of  
         serving as the lead state entity for economic strategy and marketing  
         of California on issues relating to business development, private  
         sector investment, and economic growth. GO-Biz also serves as the  
         administrative oversight for the Office of the Small Business  
         Advocate (OSBA), and the California Infrastructure and Economic  
         Development Bank (I-Bank). 



       2)Establishes the OSBA for the purpose of advocating on the behalf of  
         small businesses. Among other duties, the Office responds to  
         complaints from small businesses concerning the actions of state  
         agencies and the operative effects of state laws and regulations  
         adversely affecting those businesses. 



       3)Establishes the Small Business Finance Center within GO-Biz under  
         the direct administrative oversight of the I-Bank for the purpose of  
         addressing the capital needs of California small businesses through  
         a statewide network of small business financial development  
         corporations. 









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       FISCAL EFFECT:   Unknown





       POLICY ISSUE FRAME:





       In the last decade, federal money that could have gone to support  
       California small businesses was re-directed to other states because  
       California was unable to fully match the allocated federal dollars.  



       AB 184 designates the GO-Biz as the lead state agency for facilitating  
       the state's engagement with the federally-sponsored technical  
       assistance centers serving California small businesses.

       While AB 184 does not appropriate funding for the federal match, the  
       bill does lay the foundation for the Legislature and the Governor  
       having a more meaningful discussion regarding financial support for  
       small business technical assistance.  Among other things, the bill  
       sets stringent reporting requirements for any state moneys used to  
       finance projects undertaken by the small business technical assistance  
       centers.





       The Comment section of this analysis includes information on  
       California small businesses, each of the technical assistance  
       providers, and related legislation.  Amendments are described in  








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       Comment 9.


       


       COMMENTS:  


       1)The Role of Small Business within the California Economy:   
         California's dominance in many economic areas is based, in part, on  
         the significant role small businesses play in the state's $2.2  
         trillion economy.  Among other advantages, small businesses are  
         crucial to the state's international competitiveness and are an  
         important means for dispersing the positive economic impacts of  
         trade within the California economy.  

         Nonemployer firms make up the single largest component of businesses  
         in California, 2.9 million out of an estimated 3.6 million firms in  
         2012, representing over $149 billion in revenues with the highest  
         number of businesses in the professional, scientific, and technical  
         services industry sector.  As these nonemployer businesses grow,  
         they continue to serve as an important component of California's  
         dynamic economy.  Excluding nonemployer firms, businesses with less  
         than 20 employees comprise nearly 90% of all businesses and employ  
         approximately 18% of all workers.  These non-employer and small  
         employer firms create jobs, generate taxes, and revitalize  
         communities. 

         In hard economic times, smaller size businesses often function as  
         economic engines.  The trend continued in this most recent recession  
         with the number of nonemployer firms increasing from 2.6 million  
         firms ($137 billion in revenues) for 2008 to 2.8 million firms ($138  
         billion in revenues) for 2010.  In the post-recession economy, small  
         businesses are expected to become increasingly important due to  
         their ability to be more flexible and better suited to meet niche  
         market needs.  Their small size, however, results in certain  
         challenges in meeting regulatory requirements, accessing capital,  
         and marketing their goods and services.  California's network of  








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         technical assistance providers assist businesses with a range of  
         services, including access to quality training, one-on-one  
         counseling, mentoring, marketing data, and other business  
         development resources.

       2)Small Business Development Center Program:  The SBDC program is  
         sponsored by the federal SBA and functions as a cooperative effort  
         of the private sector, the educational community, and federal,  
         state, and local governments.  In California, SBDCs are administered  
         through a partnership between the California State Universities at  
         Chico, Humboldt, and Fullerton; the University of California at  
         Merced; Long Beach City College; and Southwestern Community College,  
         Chula Vista.  

         Formal management of the partnership is provided through the six  
         Administrative Lead Centers that are designated by, and responsible  
         to, the SBA.  Each Administrative Lead Center serves a specific  
         geographic area compromised of several SBDCs. The California SBDC  
         network serves businesses throughout California with over 30  
         permanent and satellite office.

         The SBDCs facilitate the creation, expansion, and retention of  
         businesses.  Each SBDC provides one-on-one counseling, workshops,  
         advice, and referrals to prospective and existing business owners.   
         The SBDCs assist with financing, government contracting, business  
         planning and management, marketing, international trade, energy  
         efficiency and sustainability, disaster preparedness and other  
         business issues.  Each Administrative Lead Center has its own  
         resources and maintains links with other public and private small  
         business service providers in the region, such as financial  
         institutions, local workforce investment boards, economic  
         development corporations, and federal, state, and local government  
         entities.  

         There are also SBDCs which specialize in assisting technology based  
         companies with advice and training on angel and venture capital  
         presentation preparation, funding strategies, product positioning,  
         market launch strategies, applications for federal grants,  
         technology transfers with research universities, intellectual  








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         property issues, and strategic partnerships.



         Last year the California SBDC network reported that they had advised  
         more than 60,000 clients and helped small businesses raise over  
         $500,000 in capital through its core small business advising and  
         training program, as well as through its array of specialty  
         programs. 


         Funding for the program is provided through a federal SBA  
         population-based grant.  In order to draw down these funds, each  
         Administrative Lead Center must provide a dollar-for-dollar match.   
         The federal government sets aside approximately $12 million for  
         California SBDCs annually, which represents slightly more than 11%  
         of the national program.  Since the demise of the Technology, Trade,  
         and Commerce Agency in 2003, California has only received the full  
         amount of eligible federal funds once.  


         In 2010, Speaker John A. Pérez negotiated $6 million for the SBDCs  
         as part of the final budget negotiations with the Governor.  [AB  
         1632 (Assembly Budget Committee) Chapter 731, Statutes of 2010]  In  
         2010-11 federal fiscal year, the for-once fully funded California  
         SDBCs consulted with 50,000 business including 50% women, 48%  
         minorities, and 12% veterans.  In addition, the SBDCs:


              Created and retained 7,944 jobs, which was a 38% increase over  
            the prior year;
              Assisted in 740 business startups, which was a 23% increase  
            over the prior year;


              Help small business clients to increase sales by $220,000,  
            which was a 71% increase over the prior year; and 










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              Help small business clients raised $176 million in new  
            capital, which was a 22% increase over the prior year. 


         The 2013-14 Budget Act included $2 million in General Fund  
         assistance for contracts with the SBDCs to assist small businesses  
         in accessing capital.  Initial awards were granted to 34 SDBCs, who  
         will work regionally to deliver the program. Quarterly progress  
         reports are required, but no information on outcomes are currently  
         available.  Given this state support, the SBDCs may fully match for  
         the related federal fiscal year.


       1)Women's Business Center Program:  The Women's Business Center  
         program is sponsored by the federal SBA and 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.

         The Women's Business Center program is administered through a  
         regional network of 11 nonprofit organizations who are required to  
         assist businesses make a substantial economic impact in their  
         communities, as measured by successful business startups, job  
         creation and retention, and increased company revenues.  

         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  








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         Development Center (Sherman Oaks). 

         In federal fiscal year 2014, assistance from the Women's Business  
         Centers resulted in the creation of 63 new jobs, and the retention  
         of 80 retained jobs in California.  The Women's Business Centers  
         assisted 80 business start-ups, and helped clients access over $1  
         million in capital, which included $67, 625 in SBA loans, $729,400  
         in non-SBA loans, and $238,240 in equity.

       2)The Veteran Business Outreach Center program:  The Veteran Business  
         Outreach Center program in California is one of only four in the  
         U.S. The Veteran Business Outreach Center program is designed to  
         play a significant role in meeting the unique needs of veterans in  
         starting and operating businesses. The program is funded by through  
         federal SBA. 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.  


         According to information on its website, 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.  
          Below are 2014 outcomes for  all four  Veteran Business Outreach  
         Centers.




          ---------------------------------------------------------- 
         |  Activities at all Veteran Business  |    1/1/2014 to    |
         |           Outreach Centers           |    12/31/2014     |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(1) Number of Clients Counseled       |              2,395|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|








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         |   (a) Small Businesses Counseled     |              1,636|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Businesses Counseled     |                759|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(2) Number of Initial/Follow-up       |              5,433|
         |Counseling Sessions                   |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Sessions        |              3,482|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Sessions        |              1,951|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(3) Number of Training Events         |                201|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Sponsored Training Events      |                198|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Non-sponsored Training Events  |                  3|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(4) Number of Training Event          |              10672|
         |Attendees                             |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Sponsored Training Event       |              10656|








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         |Attendees                             |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Non-sponsored Training Event   |                 16|
         |Attendees                             |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(5) Number of Awards (Fed+DoD+State)  |                 13|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Awards          |                 13|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Awards          |                  0|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(6) Dollar Value of Awards            |        $38,782.69 |
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Dollars         |        $38,782.69 |
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Dollars         |             $0.00 |
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(7) Number of Prime Contract Awards   |                 11|








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         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Prime Contracts |                 11|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Prime Contracts |                  0|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(8) Dollar Value of  Prime Contract   |        $22,455.00 |
         |Awards (Fed+DoD+State)                |                   |
         |                                      |                   |
         |                                      |                   |
                                                     |--------------------------------------+-------------------|
         |   (a) Small Business Prime Contract  |        $22,455.00 |
         |Dollars (Fed+DoD+State)               |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Prime Contract  |             $0.00 |
         |Dollars (Fed+DoD+State)               |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(9) Number of Sub-Contract Awards     |                  2|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Sub-Contracts   |                  2|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|








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         |   (b) Large Business Sub-Contracts   |                  0|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(10) Dollar Value of  Sub-Contract    |        $16,327.69 |
         |Awards (Fed+DoD+State)                |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Sub-Contract    |        $16,327.69 |
         |Dollars (Fed+DoD+State)               |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (b) Large Business Sub-Contract    |             $0.00 |
         |Dollars (Fed+DoD+State)               |                   |
         |                                      |                   |
         |                                      |                   |
          ---------------------------------------------------------- 
          ---------------------------------------------------------- 
         |                        Source:  SBA tracking system, 2014|
         |                                                          |
         |                                                          |
          ---------------------------------------------------------- 
          
       3)The Service Corps of Retired Executives (SCORE):  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 U.S. 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.

         SCORE is considered a resource partner with the SBA, which  
         administers a congressional grant that provides SCORE funding.   








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         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.

         In federal fiscal year 2014, SCORE counseled 15,698 clients and  
         provided a range of training workshops where 37,913 small business  
         owners attended.  

       4)The Procurement Technical Assistance Cooperative Agreement:  The  
         Procurement Technical Assistance Cooperative Agreement program is  
         administered by the Department of Defense for the purpose of   
         helping small businesses access public contracts at the federal,  
         state, and local levels.  The program provides matching funds  
         through cooperative agreements with state and local governments and  
         nonprofit organizations for the establishment of procurement  
         technical assistance centers

         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.

         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.

         There are 98 procurement technical assistance centers in the U.S.  
         including all 50 states, Washington D.C., Puerto Rico, and Guam.   
         Total funding for the program was $63.5 million in federal fiscal  








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         year 2014 (federal and nonfederal funds combined.)  California 6  
         centers operated under contract by California Capital CDFI  
         (Sacramento), Los Angeles Office of Small Business (Los Angeles),  
         Monterey County Business Council (Seaside), Northern California  
         Small Business Development Center (Arcata), Riverside Community  
         College District (Corona), and San Diego County (San Diego).  The  
         American Indian Chamber of Commerce has a contract that serves  
         Native Americans throughout the state.

         Centers are funded based on, among other things, the service areas  
         level of distress including having a median income at or below 80%  
         of statewide average, an unemployment rate 1% higher than the  
         national average for the most recent 24 months, or serving Native  
         American Indian reservations.  Proposed new annual reporting will  
         include:  number of clients served, number of new clients; amount of  
         counseling time; and number events the procurement technical  
         assistance center participated during the report year.

       5)Accountability and Transparency:  Public accountability of state  
         expenditures is very important, as is having clear strategic  
         objectives and measurable outcomes.  The reporting requirements in  
         AB 184 represent best practices and ensure, according to the author,  
         that GO-Biz will receive key information on the impact of any state  
         funding provided, including data on the number of businesses  
         assisted, jobs created/retained, and state tax dollars generated  
         from assisted businesses.

         While top level oversight remains in Washington D.C. for these small  
         business technical assistance programs, the six SBA district  
         directors actively participate with the SBDC Lead Centers, SCORE,  
         the Women's Business Centers, and the Veteran Outreach Center on  
         both program and administrative issues.  The federal programs are  
         also independently reviewed to ensure management and accounting  
         methods are accurate.   

         While prior legislation proposed to codify and make the SBDC program  
         a state program, AB 184 takes a different approach.  This bill  
         establishes a state lead entity for collaborating with the range of  
         federal small business technical assistance programs and sets ground  








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         rules for state collaborative actions.  Nothing in the bill would  
         require the state to become responsible for activities or actions of  
         the technical assistance centers operated by any SBDC, Women's  
         Business Center, SCORE, PTAC, or Veteran Center.  
         
       6)Governor's Office of Business and Economic Development:  In April  
         2010, the Governor's Office of Economic Development was established  
         to provide a one-stop-shop for serving the needs of businesses and  
         economic developers.  While initially established through Executive  
         Order S-01-10, the office was later codified and renamed GO-Biz.   
         [AB 29 (John A. Pérez), Chapter 475, Statues of 2010]  

         In 2014, GO-Biz assisted over 7,500 companies.  This number includes  
         assistance provided by the six GO-Biz service units: California  
         Business Investment Services, Permit Assistance, the Office of the  
         Small Business Advocate, International Affairs and Business  
         Development, the California Competes Tax Credit Program, and the  
         Innovation and Entrepreneurship Program.

         Among other programs, GO-Biz provides permit and other business  
         assistance for new and expanding businesses, as well as  
         administering the California Innovation Hub Program under an initial  
         partnership with the statewide network of SBDCs.  GO-Biz also  
         oversees the OSBA, who advocates for and provides key information to  
         small businesses.   

         The Governor's 2012 reorganization plan (GRP2), further aligned the  
         state's economic development-related administrative structure.  Key  
         changes included dismantling of the Business, Transportation and  
         Housing Agency and the shifting of a number of programs and services  
         to GO-Biz including:

              The Small Business Loan Guarantee Program;
              The California Travel and Tourism Commission;
              The California Film Commission; 
              The Film California First Program; and
              The I-Bank.

         AB 184 codifies the state's relationship with the federal small  








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         business technical assistance programs within the specific  
         responsibilities of the I-Bank and designating GO-Biz as the state  
         lead entity for overseeing the state's participation and  
         collaboration with the statewide network of federal small business  
         technical assistance providers.  In doing so, this would further  
         GO-Biz' ability to serve as a strategic resource for start-ups,  
         small businesses, and entrepreneurs in California.

       1)Amendments:  Staff understands that the author will offer amendments  
         to expand the federal technical assistance programs covered under  
         the bill to include Hollings Manufacturing Extension Partnership,  
         administered through the National Institute of Standards and  
         Technology, an agency of the U.S. Commerce Department.  California  
         has two centers with the Corporation for Manufacturing Excellence  
         (Manex) serving northern California and the California Manufacturing  
         Technology Consulting serving southern California.  Services at the  
         centers include assistance on issues relating to new technology  
         acceleration, supply chain management, lean processing, export  
         development, sustainable manufacturing practices, and other issues  
         related to innovation.

       2)Related Legislation:  Legislation related to this measure includes  
         the following:

          a)   AB 837 (Campos) Economic Development Program Reporting:  As  
            passed by JEDE, this bill would have required annual reporting to  
            GO-Biz from the Small Business Development Center Leadership  
            Council on its activities in any year that the state contributes  
            funds. Amendments taken in the Senate deleted the content of the  
            bill and added language relating to CalPERS with Assemblymember  
            Wieckowski as the author.  Status:  Vetoed by the Governor, 2014.  
             The veto message reads:  "This measure creates an exemption to  
            the California Public Employees' Pension Reform Act of 2013.  I  
            am unwilling to begin chipping away at these reforms."

          b)   AB 1632 (Assembly Budget Committee) Financing and Technical  
            Assistance Funds for Small Businesses:  This bill provided $32.35  
            million in funds for small business finance and technical  
            assistance, which leveraged $174 million in federal and in-kind  








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            funding.   The $32.35 million was allocated as follows: $20  
            million was appropriated for use within the state Small Business  
            Loan Guarantee Program; $6 million to provide a federal match for  
            California SBDCs to draw-down federal dollars; $6 million for the  
            California Capital Access Program for loss reserve programs; and  
            $350,000 to the Federal Technology Program to draw-down federal  
            dollars.  Status: Signed by the Governor, Chapter 731, Statutes  
            of 2010.

          c)   AB 2206 (Price) Small Business Development Centers:  This bill  
            would have re-established the California Small Business  
            Development Center Program through the auspices of the Business,  
            Transportation, and Housing Agency.  Status:  Held in Assembly  
            Committee on Appropriations, 2008.

          d)   AB 2670 (Medina) Small Business Technical Assistance Centers:   
            This bill would have designated the Governor's Office of Business  
            and Economic Development as the lead state entity for overseeing  
            the state's participation and collaboration with the federal  
            small business technical assistance programs.   Status:  Held on  
            the Suspense File in the Assembly Committee on Appropriations,  
            2014.  As a result of this bill and AB 2717, $2 million dollars  
            was provided in the budget to the SBDCs for assisting small  
            businesses access capital.

          e)   AB 2717 (Bonta) Funding for Small Business Development  
            Centers:  This bill would have appropriated $6 million for the  
            purpose of assisting SBDC Administrative Lead Centers provide the  
            mandatory match to draw down federal funds.  Status:  Held one  
            the Suspense File in the Assembly Committee on Appropriations,  
            2014.  As a result of this bill and AB 2670, $2 million dollars  
            was provided in the budget to the SBDCs for assisting small  
            businesses access capital.

       REGISTERED SUPPORT / OPPOSITION:


       Support









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       Alameda County Small Business Development Center


       Alicia K. Designs 


       Asian Business Association


       Black Chamber of Commerce of Orange County 


       Cabrillo College Small Business Development Center 


       Cal Poly SBDC for Innovation 


       California Association for Micro Enterprise Opportunity 


       California Small Business Development Center Leadership Council 


       California State University, Bakersfield 


       Callahan Pickups 


       CDC Small Business Finance 


       City of Alameda 


       City of Crescent City 









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       City of Gardena


       City of Merced 


       City of Mission Viejo 


       City of Oakland


       City of Torrance 


       College of the Canyons


       Del Norte County 


       Del Norte Workforce Center 


       design LAB 


       Disabled Veteran Business Alliance 


       Doing What Matters for Jobs and the Economy 


       East Bay Economic Development Alliance 


       East Bay Leadership Council 









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       Economic Development and Financing Corporation 


       Economic Vitality Corporation 


       El Camino Community College District


       Encinitas Chamber of Commerce 


       Financial Development Corporations


       Fresno Community Development Financial Institution 


       Humboldt County Board of Supervisors 


       Inproma, LLC. 


       Jefferson Economic Development Institute 


       Lawyers' Committee for Civil Rights of San Francisco Bay Area 


       League of California Cities 


       Local Marketing Center


       Long Beach City College 









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       Los Angeles Regional Small Business Development Center Network 


       Mendocino County Workforce Investment Board 


       Microenterprise Collaborative of Inland Southern California 


       Napa-Sonoma Small Business Development Center at Napa Valley College 


       National Federation for Independent Business


       National Hispanic Business Women Association 


       Northern California Procurement Technical Assistance Center 


       Northern California Small Business Development Center 


       Oceanside Chamber of Commerce 


       Orange County Hispanic Chamber of Commerce 


       Rancho Santiago Community College District 


       Redwood Coast Rural Action 


       Renaissance Entrepreneurship Center 









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       Sales Coach Now 


       San Diego and Imperial SBDC Network


       San Diego, County


       San Francisco Chamber of Commerce 


       San Francisco Small Business Development Center 


       San Gabriel Valley Economic Partnership 


       San Mateo Small Business Development Center 


       Seedles LLC 


       Small Business Development Center Program 


       Solano Community College


       Sonoma County Economic Development Board 


       Stanislaus Business Alliance 


       Sundt Construction, Inc. 









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       The Hispanic Chamber of Commerce Silicon Valley 


       The National Federation of Independent Business 


       The University of California, Merced Small Business Development Center  
       Network 


       Thermo Fisher Scientific 


       Three Sheets Craft Beer Bar 


       Valley Economic Development Center 


       Vietnamese American Chamber of Commerce of Orange County 


       Vietnamese American Chamber of Orange County 


       West Company 


       Working Solutions




       Opposition


       None known









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       Analysis Prepared by:Toni Symonds / J., E.D., & E. / (916) 319-2090