BILL ANALYSIS �
AB 2717
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2717 (Bonta and Skinner) - As Amended: April 23, 2014
Policy Committee: JEDE Vote:6-0
Urgency: Yes State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill appropriates $6 million from the General Fund to the
California Economic Development Fund for the purpose of
providing a cash match for the administrative lead centers that
have contracts with the U.S. Small Business Administration (SBA)
to administer the regional networks of Small Business
Development Centers (SBDCs). An administrative lead center is
required to provide written confirmation that state funds will
be matched by the federal SBA. Implementation of this measure
is contingent upon enactment of AB 2670 (Medina), which sets
forth reporting and other requirements related to operation of
SBDCs in California.
FISCAL EFFECT
Appropriates $6 million GF to the California Economic
Development Fund to provide a cash match for SBDCs.
COMMENTS
1)Purpose. This bill appropriates funds to assist
administrative lead centers in California with matching funds
required under the federal SBDC program. According to the
author, without such assistance, it is unlikely that
California SBDCs will have the necessary match to draw down
all available federal funds. Unused moneys from one state are
reallocated to other states.
2)Background . The SBDC program is administered by the federal
SBA. The SBDCs assist small businesses with financing,
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government contracting, business planning and management,
marketing, international trade, energy efficiency and
sustainability, disaster preparedness, and other business
issues. In California, SBDCs are administered through a
partnership between the California State Universities at
Chico, Humboldt, and Fullerton; the University of California
at Merced; Long Beach City College; and Southwestern Community
College.
Historically, California provided matching funds for the SBDC
program, from the mid-1980s through 2003. Since the demise of
the Technology, Trade and Commerce Agency in 2003, California
has not consistently provided matching funds. In 2010, the
budget included $6 million for this purpose.
This bill appropriates funding to the California Economic
Development Fund. This fund was created by AB 2012 (John A.
Perez), Chapter 294, Statutes of 2012 as part of the larger
reorganization that shifted a number of programs and services
from the Business, Transportation and Housing (BTH) Agency to
the Governor's Office of Business and Economic Development
(GO-Biz), including the California Economic Development Fund.
The California Economic Development Fund receives federal,
state, local and private economic development funds, and
repayment of loans or grant proceeds and interest on those
loans and grants. Existing law provides that upon
appropriation by the Legislature, moneys in the Fund may be
expended by the GO-Biz to provide matching funds for loans or
grants to public agencies, nonprofit organizations, and
private entities, and for other economic development purposes,
consistent with the purposes for which moneys were received.
3)Related legislation . AB 2670 (Medina), pending in this
committee, designates GO-Biz as the lead state entity for
facilitating relationships with the SBDCs in California and
codifies the existence and role of the SBDCs in providing
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technical assistance to small businesses throughout the state.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081