BILL ANALYSIS Ó
AB 2900
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2900 (Committee on Jobs, Economic Development, and the Economy)
- As Amended April 12, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires, starting September 30, 2018, and any
following year in which state funds are awarded by a state
department to a federal small business technical assistance
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center, the awarding department to report certain outcomes to
the Legislature. Specifically, this bill:
1)Requires the report to include the following: the purpose of
the contract, the amount of state funds awarded and expended
during the report year, the amount of federal funds drawn down
as a result of the state contract, the number and types of
businesses assisted, the number of employees employed by those
businesses, and the number of jobs created and retained.
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 "federal small business technical assistance center"
as 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. The bill also codifies the federal definition of
each of these centers.
4)Authorizes, as an alternative to submitting the information in
a separate report, the awarding department may include the
same information in another annual report, as specified.
5)Sunsets the provisions of this bill on January 1, 2022.
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FISCAL EFFECT:
Administrative costs, ranging from minor to $40,000 per
contract, for each agency to report outcomes of state funds
provided to federal small business technical assistance centers.
Costs will depend on the existing ability of these federal
centers to track data. Departments and agencies that may be
subject to requirements of this bill include: High Speed Rail,
CalTrans, the Employment Development Department, Department of
General Services and GO-Biz. The total amount of contracts and
agencies subject to this reporting requirement is unknown.
Assuming one contract per agency, total costs across all
departments could be in the low hundreds of thousands.
COMMENTS:
1)Purpose. According to the author, the federal small business
technical assistance centers are an important resource for
California entrepreneurs. State agencies contract with these
centers to provide assistance in helping small businesses
become ready to compete for state contracts and comply with
new state laws. This bill ensures consistent reporting across
agencies and greater transparency.
2)Prior legislation.
a) AB 2670 (E.Garcia) of 2014 designated the Governor's
Office of Business and Economic Development (GO-Biz) to
serve as the lead state entity for overseeing California's
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participation in the federal California Small Business
Development Center Program, the Women's Business Center
program, the Veteran Business Outreach Center program, the
Service Corps of Retired Executives (SCORE), and the
Procurement Technical Assistance Cooperative Agreement
program. This bill was held on this Committee's Suspense
file.
b) AB 184 (E. Garcia) of 2015 proposed to enact the Small
Business Technical Assistance Act of 2015, within the
I-Bank under the direction of GO-Biz to, among other
things, serve as the lead state entity for overseeing the
state's participation with the federal California Small
Business Development Center (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. This bill was held on this
Committee's Suspense file.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081