California Legislature—2013–14 Regular Session

Assembly Bill No. 2670

Introduced by Assembly Member Medina

February 21, 2014

An act to amend Section 13997.6 of, and to add Chapter 7 (commencing with Section 63100) to Division 1 of Title 6.7 of, the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2670, as introduced, Medina. Small Business Technical Assistance Act of 2014.

The Economic Revitalization Act establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank within GO-Biz to, among other things, assist in the promotion of economic development throughout the state.

This bill would enact the Small Business Technical Assistance Act of 2014, within the 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 Program. This act would also recognize the federal program. This act would authorize GO-Biz or any other state entity to contract with an Administrative Lead Center established under the federal program. This act would require the State Chair of the California Small Business Development Center Leadership Council, established under the federal program, to report specific information to GO-Biz relating to any year that state funds are appropriated to support an Administrative Lead Center, and would, in turn, require the director of GO-Biz to provide that report to the Legislature and post the report on the GO-Biz’s Internet Web site. This bill would also require the state chair, as a condition of accepting state funds, to allow access to other information about the program under certain conditions. This bill would make legislative findings and declarations in this regard.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 13997.6 of the Government Code is
amended to read:

13997.6.  

(a) The California Economic Development Fund is
hereby created in the State Treasury for the purpose of receiving
federal, state, local, and private economic development funds, and
receiving repayment of loans or grant proceeds and interest on
those loans or grants.

(b) Upon appropriation by the Legislature, moneys in the fund
may be expended by the Governor’s Office of Business and
Economic Development begin insert , without regard to fiscal year, end insert to provide
begin delete matching end delete funds for loans begin insert , matching funds, end insert or grants to public
agencies, nonprofit organizations, and private entities, and for
other economic development purposes, consistent with the purposes
for which the moneys were received.

SEC. 2.  

Chapter 7 (commencing with Section 63100) is added
to Division 1 of Title 6.7 of the Government Code, to read:

 

Chapter  7. Small Business Technical Assistance Act of
2014

 

63100.  

This chapter shall be known, and may be cited, as the
Small Business Technical Assistance Act of 2014.

63105.  

The Legislature finds and declares all of the following:

(a) The California Small Business Development Center Program
plays a significant role in expanding and supporting California
small businesses. There are more than 1,000 Small Business
Development Centers in the United States and its territories, and
there are over 30 Small Business Development Centers located in
regions throughout California.

(b) The primary role of the California Small Business
Development Center Program, a component of the federal Small
Business Development Center Program, is to provide technical
assistance to the state’s small businesses, including tracking
assistance and outcomes that result in a meaningful contribution
to the California economy.

(c) Within the state, the California Small Business Development
Center Program is administered through six Regional Small
Business Development Center Networks, as follows: Northern
California; Northeastern California; Central California; Orange
County/Inland Empire; Los Angeles; and San Diego. Each regional
network is managed by an Administrative Lead Center, designated
by the federal Small Business Administration through a cooperative
agreement, and affiliated with one public institution of higher
education. The centers are responsible for securing required
one-to-one matching funds to draw down federal appropriations,
according to a population-based formula determined by the United
States Census, and the regional networks are held accountable for
their productivity and required to submit regular performance
reports to the Office of Small Business Development Centers,
within the federal Small Business Administration.

(d) Throughout the six regional networks there are more than
30 full-time Small Business Development Centers, with multiple
additional outreach locations serving small businesses in this state.
These centers provide assistance to existing businesses in the areas
of financing, government contracting, business planning and
management, marketing, international trade, energy efficiency and
sustainability, and disaster preparedness. The centers also provide
expert advice to technology companies in the areas of business
and financial plan preparation, 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. The centers work in collaboration with
various partners to provide these services, including, but not limited
to, the federal Small Business Administration, the United States
Department of Commerce, the United States Department of
Agriculture, the Governor’s Office of Business and Economic
Development, the California Innovation Hub Program, the
California Community Colleges, the California State University,
the University of California, local workforce investment boards,
economic developers, cities, counties, and chambers of commerce.

63110.  

The following definitions apply for the purposes of this
chapter:

(a) “Act of Congress” refers to the act of Congress signed into
law on July 2, 1980, entitled “The Small Business Development
Act of 1980” (Public Law 96-302) which authorized the Small
Business Development Center program, operated by the Small
Business Administration.

(b) “Administrative Lead Center” means the entity with which
the federal Small Business Administration contracts with to
administer the Small Business Development Center Program within
a state or district. The Administrative Lead Center is directly
accountable to the Small Business Administration for all aspects
of the Small Business Development Center, including staffing,
program, outreach, and securing the required one-to-one match to
draw down federal funds to operate the program in the
Administrative Lead Center’s area of responsibility.

(c) The “California Small Business Development Center
Program” is comprised of the six regional networks of Small
Business Development Centers operating in the state pursuant to
a cooperative agreement between the Administrative Lead Centers
and the federal Small Business Administration.

(d) “California Small Business Development Center Leadership
Council” refers to the entity that is comprised of the directors of
the Administrative Lead Centers that coordinate the regional
networks of small business development centers. The council is
the statewide entity tasked with negotiating partnerships on behalf
of the California Small Business Development Center Program,
leveraging operational and technical assistance for best practices
across the six regions, and working with the state government to
maximize the economic impact of the federal Small Business
Development Center Program within the state.

(e) “Director” means the Director of the Governor’s Office of
Business and Economic Development.

(f) “Federal match” means the money committed to the
operations of the regional network of Small Business Development
Centers by an Administrative Lead Center, which have come from
a nonfederal government source of moneys. The federal match is
used to draw down moneys from the federal Small Business
Administration.

(g) “Office” means the Governor’s Office of Business and
Economic Development.

(h) “Regional Directors” refers to the highest level personnel
charged with management and oversight of a regional network of
Small Business Development Center Networks, and who are
employed by the Administrative Lead Centers pursuant to
guidelines from the federal Small Business Development Center.
There are six Regional Director positions in California.

(i) “Regional network of Small Business Development Centers”
refers to the Small Business Development Centers which are
administered under a single Administrative Lead Center. There
are six California Regional Small Business Development Center
Networks: Northern California, Northeastern California, Central
California, Orange County/Inland Empire, Los Angeles, and San
Diego.

(j) “Small Business Development Center” refers to an individual
physical location, recognized by the federal Small Business
Administration and overseen by the Administrative Lead Center,
where a small business owner or an aspiring entrepreneur can
receive free one-on-one consulting and low at-cost training on a
variety of topics including starting, operating, and expanding a
small business.

63115.  

(a) The office shall serve as the lead state entity for
overseeing the state’s participation with the California Small
Business Development Center Program. The office may collaborate
and support the Administrative Lead Centers in the provision of
technical assistance and other related services to small businesses
through their regional networks of Small Business Development
Centers.

(b) The office or any other state entity may contract with an
Administrative Lead Center. If a contract is entered into and money
is exchanged for services, the Administrative Lead Center or
centers shall report on those activities as specified in Section
63125.

(c) Any public or private corporation authorized to establish,
operate, and maintain a small business development regional center
whose application is granted pursuant to the terms of the Act of
Congress may establish, operate, and maintain the center subject
to the conditions and restrictions of the Act of Congress, and any
amendments thereto.

63120.  

(a) The state recognizes that the Small Business
Development Center may, pursuant to the Act of Congress, on
January 1, 2014, offer a range of services, including, but not limited
to:

(1) Providing specialized one-on-one counseling and technical
assistance in the areas of financing, government contracting,
business planning and management, marketing, international trade,
energy efficiency, sustainability, and disaster preparedness for
small businesses with the greatest potential for job retention and
creation.

(2) Providing expert business startup advising, including legal
requirements for starting a business and access to capital for small
businesses and entrepreneurs with the greatest potential to start
companies and provide jobs within California.

(3) Providing commercialization assistance to new and emerging
technology companies in the areas of business and financial plan
preparation, angel and venture capital presentation preparation,
funding strategies, product positioning, market launch strategies,
application for Small Business Innovation Research and Small
Business Technology Transfer federal grants, technology transfer
to and from research universities, intellectual property issues, and
strategic partnerships.

(4) Conducting regional and local workshops, seminars, and
conferences with local partners to meet the needs of small business
clients.

(5) Providing services to link small businesses to research and
development institutions for the purposes of transferring new
technology to a new or an expanding small business.

(6) Assisting with the commercialization of technology products
or services and with the preparation of raising funds.

(7) Providing assistance to high growth and highly scalable
businesses and entrepreneurs seeking angel and venture capital by
preparing and positioning them for funding.

(8) Coordinating with employee training and placement
programs.

(9) Providing market research and planning assistance to local,
regional, and statewide economic development partners, projects,
and collaborations.

(10) Gathering, analyzing, and maintaining information on the
economic impact of business assistance provided by the Small
Business Development Center and other organizations.

(b) The Administrative Lead Center is responsible for oversight,
management, and compliance of the Small Business Development
Centers in its geographic region, in accordance with state law and
the Act of Congress.

(c) In accordance with the Act of Congress, the California Small
Business Development Center program is required to provide a
federal match of at least one-to-one with nonfederal funds, and is
thus authorized to receive grants, gifts, and other sources of funds
to support its mission.

63125.  

(a) On or before August 30 following any year that
state funds are appropriated to an Administrative Lead Center for
the support of the California Small Business Development Center
Program, the State Chair of the California Small Business
Development Center Leadership Council shall provide a written
report to the office consistent with the requirements of this section.

(b) Each Administrative Lead Center shall agree to the reporting
requirement in this section as a condition of receiving state funds.
As a further condition for receiving state funds, the State Chair of
the California Small Business Development Center Leadership
Council shall arrange to provide the office with access to similar
information, in both a similar timeframe and format, that an
Administrative Lead Center may provide to the federal Small
Business Administration on client services and the economic
impact of the California Small Business Development Center
Program. Information provided to the office shall meet applicable
privacy standards and shall not disclose the name of an individual
business.

(c) A report prepared pursuant to subdivision (a) shall include,
but not be limited to, all of the following data:

(1) Number of businesses assisted.

(2) Number of employees employed by those businesses at the
time those businesses were assisted.

(3) Number of jobs created.

(4) Number of jobs retained.

(5) Estimated amount of state tax dollars generated from those
businesses.

(6) Industry sectors of the businesses assisted, as reported by
the assisted businesses.

(7) Increase in sales reported by businesses assisted as a result
of the program.

(8) The amount of capital infusion, in both debt and equity,
obtained by assisted businesses.

(9) Total amount of federal funds allocated to the region during
the reporting period.

(d) The director shall submit a copy of the report required
pursuant to subdivision (a) to the Legislature in compliance with
Section 9795 and post the report on the office’s Internet Web site
no later than 30 days after the office receives the report.