BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 2900


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       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


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       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


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              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.











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       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  











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       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