BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 2900


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       Date of Hearing:   April 19, 2016


          ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY


                                Eduardo Garcia, Chair


       AB 2900  
       (Committee on Jobs, Economic Development, and the Economy) - As  
       Amended April 12, 2016


       SUBJECT:  State contracting with federal small business technical  
       assistance centers


       SUMMARY:  Establishes reporting requirements for state contracts with  
       federal small business technical assistance centers, including  
       information on the number and types of businesses served.  
       Specifically, this bill:  


       1)Requires a state department that awards state funds to a federal  
         small business technical assistance center to report annually on the  
         outcomes of the those contracts, including:


          a)   The purpose of the contract and contract metrics;



          b)   The amount of state funds awarded and expended during the  
            report year; and












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          c)   Specific information about the businesses served and the  
            outcomes from that assistance.  The information reported to the  
            Legislature is required to be provided by the federal small  
            business technical assistance center.  The information includes:





            i)     The amount of federal funds drawn down as a result of  
              funding through the state contract.



            ii)    The number of businesses assisted.





            iii)   The industry sectors of the businesses assisted, as  
              reported by the business.





            iv)    The city, county, and small business technical assistance  
              center jurisdiction in which the businesses are located.  If  
              the population of the county is less than 250,000, only the  
              name of the county is required to be reported.



            v)     The number of total employees employed by those businesses  
              at the time those businesses were assisted based on the  
              following categories: no employees, five or less employees, 20  
              or less employees, under 50 employees, under 100 employees, and  








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              under 500 employees, as reported by the business.



            vi)    The number of jobs created and retained, as reported by  
              the business.



            vii)   Other program outcomes related to the purpose of the  
              program and contract metrics.   



       2)Defines an "awarding department" as a department, board, agency, or  
         authority of the state, or an officer, agent, or other authorized  
         representative of such a state entity awarding a contract for  
         services, including technical assistance to small businesses.



       3)Defines a "federal small business technical assistance center" to  
         mean a Small Business Development Center, a Women's Business Center,  
         a Veteran Business Outreach Center, a Service Corps of Retired  
         Executives (SCORE) center, a Hollings Manufacturing Extension  
         Partnership center, or a Procurement Technical Assistance Center  
         operating in California under a federal contract.  Each of these  
         federal contractors is defined in the bill.



       4)Requires the report to the Legislature be submitted in compliance  
         with state reporting and that a copy of the report be posted on the  
         Internet Web site of the awarding department.



       5)Provides, that to the extent that any provision of this bill  
         conflicts with a federal regulation or law, the provision in this  








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         bill will be inoperable.



       6)Authorizes a department to include these reporting requirements as  
         part of any other annual report as an alternative to submitting a  
         separate report.  If the agency chooses to include the information  
         within a separate report, deadline for submission may be modified  
         for up to three months. 



       7)Sunsets these reporting requirements on January 1, 2022.



       FISCAL EFFECT:  Unknown


       POLICY ISSUE FRAME


       The federal small business technical assistance centers are an  
       important resource for California entrepreneurs.  A growing number of  
       state agencies are contracting with these centers to provide valuable  
       assistance in helping small businesses become ready to compete for  
       state contracts and comply with new state laws.  This measure ensures  
       consistent reporting across agencies and greater transparency as to  
       which areas are the state of being provided services.  


       The analysis includes background on each of the federal technical  
       assistance programs and the reporting currently available without this  
       bill. 


       COMMENTS:  










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       1)The Role of Small Businesses 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 $2.3  
         trillion economy.  Two separate studies, one by the U.S. Census  
         Bureau and another by the Kaufman Foundation, found that net job  
         growth was strongest among businesses with less than 20 employees.   
         Among other advantages, small businesses are crucial in 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 non-employer 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.  In this most recent recession the trend  
         continued, 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, competing for large-size contracts and marketing their  
         goods and services.  

       2)Small Business Development Center Program:  The SBDC program is  
         sponsored by the federal Small Business Administration (SBA) and  
         functions as a cooperative effort of the private sector, the  
         educational community, and federal, state, and local governments.   








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         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 40  
         permanent and satellite offices.

         The SBDCs facilitate the creation, expansion, and retention of  
         businesses.  Each SBDC provides one-on-one counseling, workshops,  
         advisory services, 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  
         property issues, and strategic partnerships.

         In 2014, the California SBDC network reported that they had advised  
         more than 60,000 clients and helped these small businesses raise  
         over $500 million in capital through its core small business  
         advising and training program, as well as through its array of  
         specialty programs. 










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        ----------------------------------------------------------------- 
       |               California SBDC Performance in 2015               |
       |                                                                 |
       |                                                                 |
        ----------------------------------------------------------------- 
       |-----------------+--------------+---------------+-----------------|
       | Impact Category |     2015     |    Impact     |      2015       |
       |                 |              |   Category    |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Counseling Hours |    93,412    |Capital        | $  633,756,877  |
       |                 |              |Infusion       |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Clients          |    16,958    |    -Debt      | $  169,480,856  |
       |Counseled        |              |Financing      |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Extended         |    6,453     |    -Equity    | $  464,276,020  |
       |Engagement       |              |Financing      |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Long Term        |    5,720     |Jobs Created   |      5,464      |
       |Clients          |              |               |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Training Events  |    1,893     |Jobs Retained  |      2,998      |
       |                 |              |               |                 |
       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Attendees        |    29,935    |Change in      | $  271,781,435  |
       |Trained          |              |Sales          |                 |
       |                 |              |               |                 |








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       |                 |              |               |                 |
       |-----------------+--------------+---------------+-----------------|
       |Business         |    1,039     |               |                 |
       |Startups         |              |               |                 |
       |                 |              |               |                 |
       |                 |              |               |                 |
        ------------------------------------------------------------------ 



         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 $13 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;


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


              Helped small business clients raise $176 million in new  








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            capital, which was a 22% increase over the prior year. 


         The 2014-15 and the 2015-16 Budget Acts included $2 million in  
         General Fund assistance for contracts with the SBDCs to assist small  
         businesses in accessing capital.  Grant agreements were awarded to  
         34 SBDCs in September 2014, covering activities beginning October 1,  
         2014 through September 30, 2015.  In the first year of the program,  
         the Capital Infusion Program resulted in $202,645,464 in documented  
         capital infusion, exceeding the capital infusion goal for the  
         program by more than 50%. The program served 9,702 small business  
         owners across the state.   The chart below shows information  
         provided by GO-Biz at the special request of the JEDE Committee.








                  ------------------------------------------------------------ 
                 | First Year Reported Outcomes from Capital Infusion Program |
                 |                                                            |
                  ------------------------------------------------------------ 
                 |----------------------+---+----------+-----------+---------|
                 |Regional              |   |Funding   |Capital    |Clients  |
                 |                      |   |          |           |         |
                 |Administrative Lead   |   |Received  |Infusion   |Served   |
                 |                      |   |          |           |         |
                 |Center                |   |          |           |         |
                 |                      |   |          |           |         |
                 |----------------------+---+----------+-----------+---------|
                 |Northern CA SBDC      |   |$382,124  |$30,128,694|2,312    |
                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                 |----------------------+---+----------+-----------+---------|
                 |Northeastern CA SBDC  |   |$192,708  |$17,731,645|569      |








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                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                 |----------------------+---+----------+-----------+---------|
                 |UC Merced SBDC        |   |$208,795  |$12,536,699|1,141    |
                 |                      |   |          |           |         |
                 |(Central CA)          |   |          |           |         |
                 |                      |   |          |           |         |
                 |----------------------+---+----------+-----------+---------|
                 |Los Angeles SBDC      |   |$540,000  |$33,933,198|3,147    |
                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                 |                      |   |          |           |         |
                  ----------------------------------------------------------- 
                  ------------------------------------------------------------ 
                 |Orange County/Inland       |$393,665  |$101,257,66|1,003    |
                 |                           |          |           |         |
                 |Empire SBDC                |          |7          |         |
                 |                           |          |           |         |
                 |---------------------------+----------+-----------+---------|
                 |San Diego/Imperial Valley  |$198,000  |$4,304,862 |1,051    |
                 |                           |          |           |         |
                 |SBDC                       |          |           |         |
                 |                           |          |           |         |
                  ------------------------------------------------------------ 
                  ----------------------------------------------------------- 
                 |Pasadena City College |   |$54,708   |$2,477,700 |344      |
                 |                      |   |          |           |         |
                 |SBDC                  |   |          |           |         |
                 |                      |   |          |           |         |
                  ----------------------------------------------------------- 
                 |University of La      |   |$30,000   |$275,000   |135      |
                 |                      |   |          |           |         |
                 |Verne SBDC            |   |          |           |         |
                 |                      |   |          |           |         |
                 |----------------------+---+----------+-----------+---------|
                 |                      |Tot|$2,000,000|$202,645,46|9,702    |
                 |                      |   |          |           |         |
                 |                      |al |          |5          |         |








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                 |                      |   |          |           |         |
                  ----------------------------------------------------------- 
                  ------------------------------------------------------------ 
                 |                                          GO-Biz, March 2016|
                 |                                                            |
                 |                                                            |
                 |                                                            |
                 |                                                            |
                 |                                                            |
                  ------------------------------------------------------------ 



         AB 2900 would require more in-depth reporting on geographic regions  
         being served by the program.  This would allow a Member of the  
         Legislature and the public to see whether businesses in the City of  
         Indio or the County of Ventura were being served under the state  
         contract. 


       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 in making 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  








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         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). 

         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 the  
         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     |
                                            







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         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(1) Number of Clients Counseled       |              2,395|
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (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|
         |                                      |                   |
         |                                      |                   |








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         |--------------------------------------+-------------------|
         |(4) Number of Training Event          |              10672|
         |Attendees                             |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Sponsored Training Event       |              10656|
         |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)                       |                   |
         |                                      |                   |
         |                                      |                   |








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         |--------------------------------------+-------------------|
         |   (b) Large Business Dollars         |             $0.00 |
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |(7) Number of Prime Contract Awards   |                 11|
         |(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)                       |                   |
         |                                      |                   |








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         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (a) Small Business Sub-Contracts   |                  2|
         |(Fed+DoD+State)                       |                   |
         |                                      |                   |
         |                                      |                   |
         |--------------------------------------+-------------------|
         |   (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  








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         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.   
         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.









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         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  
         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 the 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 in 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 2900 represent best practices and ensures, according to the  
         author, that the state will receive key information on the impact of  
         state funding, including data on the number of businesses assisted,  
         jobs created/retained, and industry sectors served.

         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,  








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         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 2900 takes a different approach.  This bill  
         establishes a method for tracking the state's activities through the  
         federal small business technical assistance programs.   

       6)Related Legislation:  Below is a list of the related bills.

          a)   AB 184 (E. Garcia) Small Business Technical Assistance Act of  
            2015:  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 Suspense in the Assembly Committee on Appropriations,  
            2015.



          b)   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."

          c)   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  
            funding.   The $32.35 million was allocated as follows: $20  
            million was appropriated for use within the state Small Business  








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            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.

          d)   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.

          e)   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.

          f)   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 to provide  
            the mandatory match to draw down federal funds.  Status:  Held on  
            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:












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       Support - None Received            Opposition - None Received


       


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