BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 184


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          184 (Eduardo Garcia) - As Amended May 4, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill enacts the Small Business Technical Assistance Act of  
          2015, within the I-Bank under the direction of the Governor's  
          Office of Business and Economic Development (GO-Biz) to, among  
          other things, serve as the lead state entity for overseeing the  








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          state's participation with the federal California Small Business  
          Development Center (SBDC) 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.  
          Specifically, this bill:  


          1)Authorizes GO-Biz to use funding in the California Economic  
            Development Fund, without regard to fiscal year, to provide  
            funds for loans and matching funds.  



          2)Authorizes GO-Biz or any other state entity to contract with a  
            federal small business technical assistance center. 
          3)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.

          FISCAL EFFECT:


          Ongoing administrative costs to Go-Biz of approximately $219,000  
          for two positions to oversee the state's participation with the  
          California SBDC Program.

          COMMENTS:









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          1)Purpose.  According to the author, this bill recognizes SBDCs  
            and their role in promoting small businesses and designates  
            GO-Biz as the lead state entity for facilitating the state's  
            engagement with these centers.  The bill also recognizes the  
            federal requirement that SBDCs must provide a financial match  
            in order to draw down federal funds and sets reporting  
            requirements for the use of any state moneys.  According to  
            the author, while prior legislation proposed to codify the  
            federal SBDC program in state statute, this bill instead  
            establishes a state liaison for collaborating with the federal  
            program and establishes rules for state collaborative actions.  
             

          2)Background.  The SBDC program is administered by the federal  
            Small Business Association (SBA).  The SBDCs assist small  
            businesses with financing, government contracting, business  
            planning and management, marketing, international trade,  
            energy efficiency and sustainability, disaster preparedness,  
            and other business issues.  Funding for the program is  
            provided through a federal SBA population-based grant.  

            The federal government sets aside approximately $12 million  
            for California SBDCs annually, which represents slightly more  
            than 11% of the national program.  A dollar-for-dollar match  
            is required to receive federal funds.  The 2013-14 Budget Act  
            included a one-time General Fund appropriation of $2 million  
            to support SBDCs with the federal match requirement.

          3)Prior legislation. AB 2670 (Medina) of 2014 was substantially  
            similar to this bill and was held on the Suspense file in this  
            committee. 



          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081










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