BILL ANALYSIS Ó AB 2900 Page 1 ASSEMBLY THIRD READING AB 2900 (Committee on Jobs, et al.) As Amended May 27, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Jobs |9-0 |Eduardo Garcia, Kim, | | | | |Achadjian, Brough, | | | | |Brown, Chau, Chu, | | | | |Gipson, Irwin | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | AB 2900 Page 2 | | | | | ------------------------------------------------------------------ SUMMARY: Establishes reporting requirements for state contracts with federal small business technical assistance centers, as defined, 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 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 AB 2900 Page 3 specified. iv) The number of businesses assisted by city and county, as specified. v) The number of businesses assisted with five or fewer employees, 25 or fewer employees, under 100 employees, and between 101 and 500 employees, as specified. vi) The number of jobs created and retained, as specified. 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, 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. AB 2900 Page 4 5)Provides, that to the extent that any provision of this bill conflicts with a federal regulation or law, the provision in this 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)Specifies that the reporting requirements in this bill apply to contracts awarded on or after September 1, 2017, and December 31, 2021. FISCAL EFFECT: According to the Assembly Appropriations Committee, implementation of this measure will result in 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: 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 AB 2900 Page 5 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 of the state are being provided services. The policy committee analysis includes background on each of the federal technical assistance programs and the reporting currently available without this bill. Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0003195