BILL NUMBER: AB 184	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eduardo Garcia

                        JANUARY 26, 2015

   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 184, as introduced, Eduardo Garcia. Small Business Technical
Assistance Act of 2015.
   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. The Bergeson-Peace
Infrastructure and Economic Development Bank Act establishes the
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 2015, 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, the Women's Business Center program, the
Veteran Business Outreach Center program, the Service Corps of
Retired Executives (SCORE), and the Procurement Technical Assistance
Cooperative Agreement program. The bill would also recognize those
federal programs, and would authorize GO-Biz or any other state
entity to contract with a federal small business technical assistance
center. The bill would require the State Chair of the California
Small Business Development Center Leadership Council, or the contract
lead for any of the other federal small business technical
assistance centers, to report specific information to GO-Biz relating
to any year that state funds are appropriated to support the
California Small Business Development Center Program or any of the
other federal small business technical assistance center programs,
and would, in turn, require the director of GO-Biz or the contract
lead for any of the other small business technical assistance centers
to provide that report to the Legislature and post the report on the
GO-Biz's Internet Web site. The bill would also require the state
chair, as a condition of accepting state funds, to allow access to
other information about those federal programs under certain
conditions. The 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  , without regard to fiscal year,  to provide
 matching  funds for loans  , matching funds,
 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 2015


   63100.  This chapter shall be known, and may be cited, as the
Small Business Technical Assistance Act of 2015.
   63105.  The Legislature finds and declares all of the following:
   (a) The federal government funds and operates a range of technical
assistance programs through contracts with nonprofit organizations
who commit to serve and support small businesses in California
including the California Small Business Development Center program,
the Women's Business Center program, the Veteran Business Outreach
Center Program, and the Service Corps of Retired Executives (SCORE).
The Department of Defense also funds and operates the Procurement
Technical Assistance Cooperative Agreement program through contracts
with nonprofit organizations in California. All of these programs
provide free and low-cost services to California small businesses. It
is in the interest of the state to collaborate with these centers
under the state role of helping to provide an economic environment in
which small businesses can be successful, including participation in
a seamless network of federal, state, and nonprofit programs,
services, and activities that benefit small businesses.
   (b) (1) 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.
   (2) 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.
   (3) 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.
   (4) 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.
   (c) (1) The Women's Business Center program plays a significant
role in expanding and supporting California small businesses. The
Women's Business Center program was established to provide in-depth,
substantive, outcome-oriented business services to women
entrepreneurs, both nascent and established businesses, including a
representative number of which are socially and economically
disadvantaged.
   (2) The Women's Business Center program meets its mission through
the award of financial assistance to tax-exempt, private nonprofit
organizations to enable them to effect substantial economic impact in
their communities, as measured by successful business startups, job
creation and retention, and increased company revenues.
   (3) California's network of women's business centers include: Anew
America Women's Business Center/Anew America Community Corporation
(Berkeley); Mendocino Women's Business Center West Company (Fort
Bragg); Asian Pacific Islander Small Business Program WBC/LTSC
Community Development Corp. (Los Angeles); PACE Women's Business
Center/Pacific Asian Consortium Employment (Los Angeles); University
Enterprises Corporation at CSUSB - (Coachella Valley); California
Capital Financial Development Corporation (Sacramento); Inland Empire
Women's Business Center University Enterprise Corp. at California
State University, San Bernardino (San Bernardino); Renaissance
Entrepreneurship Center (San Francisco); Women Business Partners
Program Mission Community Services Corp. (San Luis Obispo); Women's
Economic Ventures (Santa Barbara); and Valley Economic Development
Center (Sherman Oaks).
   (d) The Veteran Business Outreach Center program in California is
one of only four in the United States. The Veteran Business Outreach
Center program plays an important role in meeting the unique needs of
veterans in starting and operating businesses. The program is funded
by the Small Business Administration's veterans unit. The Veteran
Business Outreach Center program provides statewide small business
consulting and workshops for veteran owners of small businesses, and
veterans wishing to start a small business. The Veteran Business
Outreach Center program offers outreach through its network of
related nonprofit veteran service centers in the California Cities of
Santa Rosa, Eureka, Menlo Park, and Redding, and in Reno, Nevada.
   (e) (1) The Service Corps of Retired Executives (SCORE) is managed
by the SCORE Association "Counselors to America's Small Business"
and is organized as a nonprofit association comprised of over 13,000
volunteer business counselors working in 348 SCORE chapters
throughout the United States and its territories. SCORE members are
trained to serve as counselors, advisors, and mentors to aspiring
entrepreneurs and business owners. Services are offered at no fee, as
a community service. SCORE was formed in 1964 and nearly 10 million
Americans have utilized SCORE services.
   (2) SCORE is a resource partner with the Small Business
Administration. The Small Business Administration administers a
congressional grant, which provides SCORE with funding. SCORE
volunteers work with the Small Business Administration and small
business development centers to provide small business mentoring and
training to entrepreneurs through the Small Business Administration
and small business development center offices. There are 19 SCORE
offices in California, as well as a range of online services.
   (f) (1) The Procurement Technical Assistance Cooperative Agreement
program plays an important role in helping small business access
public contract opportunities. The Procurement Technical Assistance
Cooperative Agreement program was authorized by Congress in 1985 in
an effort to expand the number of businesses capable of participating
in the government marketplace.
   (2) The Procurement Technical Assistance Cooperative Agreement
program is administered by the Department of Defense. The program
provides matching funds through cooperative agreements with state and
local governments and nonprofit organizations for the establishment
of procurement technical assistance centers to provide procurement
assistance.
   (3) Procurement technical assistance centers are structured to
reflect the needs, priorities, and resources of the areas they serve.
Some procurement technical assistance centers are administered
directly by state governments; others partner with universities,
community colleges, local economic development corporations, or other
local institutions. Some procurement technical assistance centers
operate within Bureau of Indian Affairs areas and serve exclusively
Native American-owned businesses. Many are affiliated in some way
with small business development centers and other small business
programs.
   (4) Procurement technical assistance centers are staffed with
counselors experienced in government contracting and provide a wide
range of services including classes and seminars, individual
counseling, and easy access to bid opportunities, contract
specifications, procurement histories, and other information
necessary to successfully compete for government contracts.
   63110.  The following definitions apply for the purposes of this
chapter:
   (a) (1) "Small Business Act of Congress" refers to the act of
Congress signed into law on July 2, 1980, entitled "The Small
Business Development Center Act of 1980" (Public Law 96-302) which
authorized the Small Business Development Center Program, operated by
the Small Business Administration.
   (2) "Women's Business Act of Congress" refers to the act of
Congress signed into law in 1988, entitled the "Women's Business
Ownership Act of 1988" (Public Law 100-533), operated by the Small
Business Administration.
   (3) "Veteran's Business Act of Congress" refers to the act of
Congress described in Section 657b of Title 15 of the United States
Code governing the Veteran Business Outreach Center, operated by the
Small Business Administration.
   (4) "SCORE Act of Congress" refers to the act of Congress
described in Section 637 of Title 15 of the United States Code
governing the Service Corps of Retired Executives (SCORE), operated
by the Small Business Administration.
   (5) "Procurement Act of Congress" refers to the act of Congress
described in Chapter 142 (commencing with Section 2411) of Part IV of
Subtitle A of Title 10 of the United States Code governing the
Procurement Technical Assistance Cooperative Agreement program,
operated by the Department of Defense.
   (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, a Women's Business Center, the Veteran
Outreach Center, and a Procurement Technical Assistance Center, that
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) "Regional Network of Women's Business Centers" refers to the
Women's Business Centers. There are 11 California Regional Small
Business Development Center Networks.
   (k) "Regional Network of SCORE" refers to the Service Corps of
Retired Executives, which are administered pursuant to a
congressional grant and guidelines from the federal Small Business
Administration. There are 19 SCORE centers in California located in
Bakersfield, Capitola, Chico, Citrus Heights, Fresno, Glendale,
Modesto, Monterey, Oakland, Oxnard, Palm Desert, Riverside, San
Diego, San Francisco, San Jose, San Luis Obispo, Santa Ana, Santa
Rosa, and Sonora.
   (l) "Regional Network of Procurement Technical Assistance Centers"
refers to procurement technical assistance centers, which are
administered pursuant to guidelines from the United States Department
of Defense.
   (m) "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.
   (n) "Federal small business technical assistance centers" means a
Small Business Development Center, a Women's Business Center, the
Veteran Business Outreach Center, a SCORE center, and a Procurement
Technical Assistance Center that operate in California under federal
contracts.
   (o) The "Women's Business Center" refers to an individual,
physical location, recognized by the federal Small Business
Administration 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.
   (p) The "Veteran's Business Center" refers to an individual,
physical location, recognized by the federal Small Business
Administration where a small business veteran owner or an aspiring
veteran 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.
   (q) "SCORE" refers to an individual, physical location, recognized
by the federal Small Business Administration where a small business
owner or an aspiring entrepreneur can receive free mentoring and
attend workshops on a variety of topics including starting,
operating, and expanding a small business.
   (r) The "Procurement Technical Assistance Center" refers to an
individual, physical location, recognized by the United States
Department of Defense where a small business owner can receive free
training on a variety of state and federal procurement issues.
   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 Women's Business Center
program, the Veteran Business Outreach Center program, the Service
Corps of Retired Executives (SCORE), and the Procurement Technical
Assistance Cooperative Agreement program. The office may collaborate
with and support federal small business technical assistance centers
in the provision of technical assistance and other related services
to small businesses through their regional networks of centers.
   (b) The office or any other state entity may contract with a
federal small business technical assistance center. If a contract is
entered into and money is exchanged for services, the federal small
business technical assistance center shall report on those activities
as specified in Section 63125.
   (c) (1) Any public or private corporation authorized to establish,
operate, and maintain a small business development center whose
application is granted pursuant to the terms of the Small Business
Act of Congress may establish, operate, and maintain the center
subject to the conditions and restrictions of the Small Business Act
of Congress, and any amendments thereto.
   (2) Any public or private corporation authorized to establish,
operate, and maintain a Women's Business Center whose application is
granted pursuant to the terms of the Women's Business Act of Congress
may establish, operate, and maintain the center subject to the
conditions and restrictions of the Women's Business Act of Congress,
and any amendments thereto.
   (3) Any public or private corporation authorized to establish,
operate, and maintain a Veteran's Business Center whose application
is granted pursuant to the terms of the Veteran's Business Act of
Congress may establish, operate, and maintain the center subject to
the conditions and restrictions of the Veteran's Act of Congress, and
any amendments thereto.
   (4) Any public or private corporation authorized to establish,
operate, and maintain a SCORE center whose application is granted
pursuant to the terms of the SCORE Act of Congress may establish,
operate, and maintain the center subject to the conditions and
restrictions of the SCORE Act of Congress, and any amendments
thereto.
   (5) Any public or private corporation authorized to establish,
operate, and maintain a Procurement Technical Assistance Center whose
application is granted pursuant to the terms of the Procurement Act
of Congress may establish, operate, and maintain the center subject
to the conditions and restrictions of the Procurement Act of
Congress, and any amendments thereto.
   63120.  The state recognizes that the federal small business
technical assistance center programs, administered by the federal
Small Business Administration and the United States Department of
Defense through a network of nonprofit service providers, offer a
range of services that benefit California small businesses including
the following:
   (a) (1) The state recognizes that the Small Business Development
Center may, pursuant to the Small Business Act of Congress, on
January 1, 2014, offer a range of services, including, but not
limited to:
   (A) 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.
   (B) 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.
   (C) 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.
   (D) Conducting regional and local workshops, seminars, and
conferences with local partners to meet the needs of small business
clients.
   (E) 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.
   (F) Assisting with the commercialization of technology products or
services and with the preparation of raising funds.
   (G) Providing assistance to high growth and highly scalable
businesses and entrepreneurs seeking angel and venture capital by
preparing and positioning them for funding.
   (H) Coordinating with employee training and placement programs.
   (I) Providing market research and planning assistance to local,
regional, and statewide economic development partners, projects, and
collaborations.
   (J) Gathering, analyzing, and maintaining information on the
economic impact of business assistance provided by the Small Business
Development Center and other organizations.
   (2) 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 Small
Business Act of Congress.
   (3) In accordance with the Small Business 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.
   (b) (1) The state recognizes that the Women's Business Centers
may, pursuant to the Women's Business Act of Congress, offer a range
of services, including, but not limited to:
   (A) Offering financial assistance on how to prepare a loan package
and secure business credit from public and private lending.
   (B) Providing marketing assistance, including how to increase a
business's capacity to prepare and execute marketing plans;
developing pricing, packaging, and distribution strategies; and the
effective use of public relations, networking, and advertising
techniques.
   (C) Offering export assistance in cooperation with the Small
Business Administration's Office of International Trade, the United
States Department of Commerce, and other relevant federal programs.
   (D) Providing additional specialized assistance, including issues
related to home-based businesses, legal matters, accounting, rural
business, agribusiness, construction, child care, elder care,
manufacturing, procurement, web development, business expansion and
franchising, or international trade, business programs helpful to
veterans, people seeking to get off welfare, people with
disabilities, and other subcategories of issues concerning women in
business.
   (2) In accordance with the Women's Business Act of Congress, the
Women's Business 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.
   (c) The state recognizes that the Veteran's Business Center may,
pursuant to the Veteran's Business Act of Congress, offer a range of
services, including, but not limited to:
   (1) Providing statewide small business consulting and workshops
for veteran owners of small businesses and veterans wishing to start
a small business.
   (2) Offering transitional housing, which offers a safe environment
where veterans are supported in their efforts to overcome a variety
of obstacles. The agency has up to 100 transitional beds in
operation.
   (3) Offering a network of services so veterans are connected to
employment and training programs, counseling, and legal services.
   (4) Offering comprehensive employment placement services by
providing clients with job leads, resume preparation, informational
resources, and interview preparation.
   (5) Operating a 22-bed alcohol/drug social recovery model project
established in 2005.
   (d) The state recognizes that SCORE may, pursuant to the SCORE Act
of Congress, offer a range of services, including, but not limited
to:
   (1) Serving as counselors, advisors, and mentors to aspiring
entrepreneurs and business owners.
   (2) Offering online and in-person workshops on management,
marketing, e-commerce, selling your business, accessing capital, and
intellectual property.
   (e) The state recognizes that the Procurement Technical Assistance
Centers may, pursuant to a Procurement Act of Congress, offer a
range of services, including, but not limited to:
   (1) Helping to determine business readiness for taking advantage
of government contracting opportunities.
   (2) Securing the registrations that are necessary to participate
in the government marketplace, including the United States government'
s System for Award Management (SAM), the Small Business
Administration's Dynamic Small Business Search, and other government
vendor databases.
   (3) Obtaining key certifications to participate in the government
marketplace including Small Disadvantaged Business, 8(a) Business
Development Program, HUBzone, and other certifications.
   (4) Identifying which government offices and individuals are most
likely to need a business's products and best ways to connect with
them.
                                                   (5) Researching
government agency procurement histories.
   (6) Hosting "matchmaking" events, which provide critical
opportunities to connect with agency buying officers, prime
contractors, and other businesses that may offer teaming or
subcontracting opportunities.
   (7) Identifying bid opportunities and understanding solicitation
packages.
   63125.  (a) On or before August 30 following any year that state
funds are appropriated to federal small business technical assistance
centers for the support of the California Small Business Development
Center Program or any of the other federal small business technical
assistance center programs, the State Chair of the California Small
Business Development Center Leadership Council, or the contract lead
for any of the other federal small business technical assistance
centers as defined in Section 63110, shall provide a written report
to the office consistent with the requirements of this section.
   (b) Each Administrative Lead Center and each of the other federal
small business technical assistance centers 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 or any of the other federal small
business technical assistance centers 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) (1) The director or the contract lead for any of the other
small business technical assistance centers 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.
   (2) This subdivision shall become inoperative on January 1, 2020,
pursuant to Section 10231.5.