BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2714
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            AB 2714 (V. Manuel Perez) - As Introduced:  February 16, 2010 

          Policy Committee:                             Jobs, Econ.  
          Development and the Economy                   Vote: 6 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill moves the office of the Small Business Advocate from  
          the governor's Office of Planning and Research (OPR) to the  
          Business, Transportation, and Housing (BTH) agency. In addition,  
          this bill adds a representative of the Office of the Small  
          Business Advocate to the Small Business Board.  

          FISCAL EFFECT  

          Currently the office is staffed by the Small Business Advocate  
          and one other person.  In addition, two analysts from OPR have  
          been loaned to the advocate to assist the office in fulfilling  
          its statutory requirements.  If the office is moved to BTH,  
          presumably the office would need two additional staff to replace  
          the two OPR analysts that would not transfer with the  
          organization. The cost would be approximately $190,000 GF per  
          year. 

           COMMENTS  

           1)Purpose  . This bill is intended to relocate the office of the  
            Small Business Advocate from OPR to BTH. The bill is in  
            response to a 2009 Joint Legislative Budget Committee vote and  
            a proposal in the governor's proposed 2010 - 11 budget. 

           2)Key Issue  . The governor recently created the Governor's Office  
            of Economic Development (GOED) and shifted several economic  
            development programs from BTH to GOED, including the Small  
            Business Advocate.  Given that recent effort, the Legislature  
            may wish to consider whether it makes sense to statutorily  
            establish this office in GOED, where it is currently housed,  








                                                                  AB 2714
                                                                  Page  2

            rather than moving it to BTH. 

           3)Related Legislation  . AB 2287 (Bass) would codify the new  
            Governor's Office of Economic Development and creates a  
            California Business Investment Services Program within that  
            office. That bill is currently pending in this committee. 

            AB 2734 (John Perez) codifies the Governor's Office of  
            Economic Development and locates the Small Business Advocate  
            within that office.  In addition, that bill creates a  
            California Business Investment Services Program within that  
            office.  That bill is currently pending in this committee.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081