Amended  IN  Assembly  April 20, 2021
Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1072

Introduced by Assembly Member Reyes

February 18, 2021

An act to amend Section Sections 12100.62, 12100.63, 12100.69, and 14845 of the Government Code, relating to small businesses.


LEGISLATIVE COUNSEL'S DIGEST


AB 1072, as amended, Reyes. Small businesses: technical assistance: public contracts.

Existing

(1) Existing law, the California Small Business Development Technical Assistance Expansion Act of 2018, creates the California Small Business Technical Assistance Expansion Program within the Governor’s Office of Business and Economic Development, under the authority of the Director of the Governor’s Office of Business and Economic Development, to assist small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more federal small business technical assistance centers, as prescribed. Existing law, upon appropriation of funds by the Legislature, requires the office to make grants to federal small business technical assistance centers that the office determines meet specified eligibility criteria. Existing law requires the office to evaluate applications received based on prescribed factors, to prioritize funding for applications that best meet the factors, and give preference to applications that propose new or enhanced services to specified underserved business groups. Existing law requires the use of state funds provided pursuant to the program to expand consulting and training services through existing and new centers, including satellite offices. These provisions are repealed as of January 1, 2024.
This bill would relocate the program within the Office of Small Business Advocate, under the direction of the Small Business Advocate. The bill would expand underserved business groups to be prioritized to include disadvantaged business enterprises. The bill would additionally require the use of state funds provided pursuant to the program to support a range of programs and services delivered through one or more small business technical assistance centers, as specified. The bill would also authorize the use of state funds provided pursuant to the program for certain purposes relating to small business technical assistance. The bill would extend the repeal date to January 1, 2027.
(2) Other existing law requires the Department of General Services’ small business advocate, using existing resources, to provide certain services, including, but not limited to, to; developing and maintaining an outreach and education program to assist certified small businesses and certified disabled veteran business enterprises in establishing the California multiple award schedule (CMAS), actively promoting the availability of certified small business and certified disabled veteran business enterprise these suppliers to deliver or provide a broad range of goods and services to governmental agencies through their participation in the California multiple award schedule CMAS program, establishing a training and development program for acquisition professionals, including methods for structuring solicitations to enhance the participation of certified small businesses and certified disabled veteran business enterprises in state contracting, establishing a recognition and awards program, and preparing and making available to the public a directory of certified small business and certified disabled veteran business enterprise suppliers.
This bill would additionally require the Department of General Services’ small business advocate to additionally conduct outreach and provide assist state agencies, in collaboration with the California Disabled Veteran Business Enterprise Program Advocate and the Small Business Advocate, in improving small business and disabled business enterprise procurement participation, as specified, including outreach and providing technical assistance to small businesses seeking certification to be eligible for additional small business assistance related to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 12100.62 of the Government Code is amended to read:

12100.62.
 Unless the context otherwise requires, the following definitions in this section shall govern the construction of this article:
(a) “California Small Business Development Center Program” is comprised composed of the five regional networks of small business development centers operating in the state pursuant to a cooperative agreement between the fiscal agent and the federal Small Business Administration.
(b) “Committed nonstate local cash match” means funding awarded by a nonstate local source to a federal small business technical assistance center through a letter of intent, notice of award, or cash deposit.
(c) “Director” means the Director of the Governor’s Office of Small Business and Economic Development. Advocate.
(d) “Federal small business technical assistance center” means an organization that contracts with a federal funding partner to operate a small business development center, a women’s business center, a veterans business outreach center, a manufacturing extension partnership center, a minority business development center, a procurement technical assistance center, or a similar program within this state to support small businesses.
(e) “Federal funding partner” means the federal Small Business Administration, federal Department of Commerce, federal Department of Defense, or any other federal agency with the authority to administer a small business technical assistance program in this state.
(f) “Fiscal agent” means the entity with which a federal funding partner contracts to administer small business technical assistance programs within a state or district. The fiscal agent shall be directly accountable to the federal funding partner for all aspects of the specified small business technical assistance program, including staffing, programming, outreach, securing any required matching funds to draw down federal funds, and reporting performance outcomes to operate the program in the fiscal agent’s area of responsibility.
(g) “GO-Biz” or “office” “Office” means the Governor’s Office of Small Business and Economic Development. Advocate.
(h) “Local cash match” means nonfederal funds that are spent on eligible program costs.
(i) “Manufacturing extension partnership center” means a California contractor recognized by the federal National Institute of Standards and Technology pursuant to the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418), at which small manufacturers can obtain information and assistance on new technology acceleration, supply chain management, lean processing, export development, sustainable manufacturing practices, and other issues related to innovation.
(j) “Minority business development center” means an entity or physical location, recognized by the federal Department of Commerce, from which a minority-owned small business may receive consulting and technical services to expand to new markets, both foreign and domestic.
(k) “Minority business export center” means an entity or physical location, recognized by the federal Department of Commerce, from which a minority-owned small business may receive consulting and technical services to increase access to capital, contracts, and foreign markets.
(l) “Procurement act” means Chapter 142 (commencing with Section 2411) of Part IV of Subtitle A of Title 10 of the United States Code, which governs the Procurement Technical Assistance Cooperative Agreement program, administered by the federal Department of Defense.
(m) “Procurement technical assistance center” means an entity or physical location, recognized by the federal Department of Defense, from which a small business owner may receive free training on a variety of topics, including starting, operating, and expanding a small business.
(n) “Program” means the California Small Business Development Technical Assistance Expansion Program created pursuant to Section 12100.63 and administered in accordance with this article.
(o) “Small business act” means the Small Business Development Center Act of 1980 (Public Law 96-302), and any amendments to that act, which authorizes the Small Business Development Center Program, administered by the federal Small Business Administration.
(p) “Small business development center” means to an entity or physical location, recognized by the federal Small Business Administration, from which a small business owner or an aspiring entrepreneur may 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) “Veteran’s business act” means Section 657b of Title 15 of the United States Code, which establishes the Office of Veterans Business Development and governs veteran business outreach centers, administered by the federal Small Business Administration.
(r) “Veterans business center” means an entity or physical location, recognized by the federal Small Business Administration, from which 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.
(s) “Women’s business act” means the Women’s Business Ownership Act of 1988 (Public Law 100-533), and any amendments to that act, administered by the federal Small Business Administration.
(t) “Women’s business center” means an entity or physical location, recognized by the federal Small Business Administration, from which 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.

SEC. 2.

 Section 12100.63 of the Government Code is amended to read:

12100.63.
 (a) The California Small Business Technical Assistance Expansion Program is hereby created within the office. Office of Small Business Advocate.
(b) The program shall be under the direct authority of the director. Small Business Advocate.
(c) The purpose of the program is to assist small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more federal small business technical assistance centers.
(d) In implementing the program, the office shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of small businesses in California.
(e) An applicant pursuant to this article shall be a federal small business technical assistance center operating as a group, including a regional or statewide network, or as an individual center.
(1) A federal small business technical assistance center operating as a group consisting of centers organized under a coordinating administrative or fiscal entity shall apply by submitting a single consolidated application to the office.
(2) A federal small business technical assistance center operating as an individual center shall apply by submitting a single application for that center to the office.
(f) The office shall administer the program to provide grants to expand the capacity of small business development technical assistance programs in California, administered by and primarily funded by federal agencies, that provide one-on-one confidential consulting and training to small businesses and entrepreneurs in this state. An applicant shall be eligible to participate in the program if the office determines that the applicant meets all of the following criteria:
(1) At the time of applying for funds, the applicant has an active contract with a federal funding partner to administer a program in this state, or has received a letter of intent from a federal funding partner to administer a federal small business technical assistance center program in this state within the next fiscal year.
(2) (A) The applicant provided a plan of action and commitment to fully draw down all of the federal funds available using local cash match and state funds not described in Section 12100.65 during the duration of the award period. GO-Biz may request that the applicant provide details relating to the source and amount of these nonstate local match funds.
(B) If the applicant is a new federal small business technical assistance center, the applicant has demonstrated the ability to fully draw down substantially all federal funds available to it.
(3) The requested funding amount does not exceed the total federal award specified in the contract with the federal funding partner contract, but in any event is no less than twenty five thousand dollars ($25,000).
(4) The applicant seeks funding for one or more years, but no more than five years in duration.
(5) The grant agreements authorized by this article are not subject to the model contract provisions developed pursuant to Chapter 14.27 (commencing with Section 67325) of Part 40 of Division 5 of Title 3 of the Education Code.
(6) The applicant has a fiscal agent that is able to receive nonfederal funds.
(g) The office shall issue a request for proposal for grants under the program, which may contain the following information:
(1) The eligibility requirements described in subdivision (e).
(2) The available funding range.
(3) Funding instruments.
(4) The local cash match requirement described in subdivision (f).
(5) Operational capacity.
(6) The duration of the program.
(7) The start date of the program.
(8) Narrative requirements.
(9) Reporting requirements.
(10) Required attachments.
(11) Submission requirements.
(12) Application evaluation criteria.
(13) An announcement of an awards timeline.
(h) (1) The office shall evaluate applications received based on the following factors:
(A) The proposed use of the requested funding, including the specificity, measurability, and ability of the applicant to document and achieve the goals and objectives identified in its application.
(B) The proposed management strategy of the applicant to achieve its goals and objectives identified in its application.
(C) The applicant’s ability to complement and leverage the work of other local, state, federal, nonprofit, or private business technical assistance resource providers.
(D) The applicant’s historical performance with federal funding partner contracts and the strength of its fiscal controls.
(2) The office shall prioritize funding for applications that best meet the factors listed in paragraph (1) and give preference to applications that propose new or enhanced services to underserved business groups, including women, minority, and veteran-owned businesses, and businesses in low-wealth, rural, and disaster-impacted communities communities, and disadvantaged business enterprises included in a state or federal emergency declaration or proclamation.
(i) (1) State funds provided pursuant to the program shall be used to expand consulting and training services through existing and new centers, including satellite offices. State
(2) State funds provided pursuant to the program may also be applied to costs related to activities that will effectively expand small business technical assistance to priority businesses, as described in paragraph (2) of subdivision (h), including, but not limited to, marketing, travel, and administrative costs, but those costs shall not exceed five percent of the grant awarded pursuant to this article.
(3) State funds provided pursuant to the program shall not supplant nonstate local cash match dollars included in a federal small business technical assistance center’s plan described in subparagraph (A) of paragraph (2) of subdivision (f).
(j) (1) State funds provided pursuant to the program shall be used to support a range of programs and services delivered through one or more small business technical assistance centers, including, but not limited to, business startups, business restructuring, business expansion and retention, accessing capital, participating in government procurement opportunities, becoming competitive and maintaining competitiveness in foreign markets, regulatory compliance, and emergency preparedness.
(2) State funds provided pursuant to the program may also be utilized for emergent small business technical assistance activities, such as those that are created in response to natural disasters and other state of emergencies, economic crises, and new economic market sectors and factors, such as cyber and technology modalities.

SEC. 3.

 Section 12100.69 of the Government Code is amended to read:

12100.69.
 This article shall remain in effect only until January 1, 2024, 2027, and as of that date is repealed.

SECTION 1.SEC. 4.

 Section 14845 of the Government Code is amended to read:

14845.
 Using existing resources, the Department of General Services’ small business advocate shall, at a minimum, provide the following services:
(a) Assist certified small businesses and certified disabled veteran business enterprises by providing information regarding all of the following:
(1) Identification of potential certified small business and certified disabled veteran business enterprise subcontractors and potential subcontracting opportunities.
(2) Solicitation protest procedures and timelines.
(3) Prompt payment procedures.
(b) Using existing resources, develop Develop and maintain an outreach and education program to assist certified small businesses and certified disabled veteran business enterprises to establish in establishing the California multiple award schedule. schedule, or CMAS. The department shall actively promote the availability of certified small business and certified disabled veteran business enterprise suppliers to deliver or provide a broad range of goods and services to governmental agencies through their participation in the California multiple award schedule program established pursuant to Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code CMAS and other types of contracts established by state agencies for repetitively used and commonly needed goods and services.
(c) Whenever the director consolidates the needs of multiple state agencies and establishes a contract for repetitively purchased or commonly needed goods or services, the director shall both encourage bidders to utilize certified small business and certified disabled veteran business enterprise suppliers and subcontractors, and utilize multiple award methods whenever practicable to further ensure that a fair proportion of needed goods and services are obtained from certified small businesses and certified disabled veteran business enterprises.
(d) Using existing resources, establish Establish a training and development program for acquisition professionals, including methods for structuring solicitations to enhance the participation of certified small businesses and certified disabled veteran business enterprises in state contracting.
(e) Using existing resources, the The department shall establish a recognition and awards program for state employees who make an outstanding contribution to the state’s overall effort to increase the level of certified small business participation in state contracting or certified disabled veteran business enterprise participation in state contracting.
(f) Prepare, and make available to the public, a directory of certified small business and certified disabled veteran business enterprise suppliers.
(g) In its review of state agency acquisitions, the department, as applicable, shall identify areas where improvements in the level of participation of certified small businesses and certified disabled veteran business enterprises in state contracting can be achieved.

(h)Conduct outreach and provide technical assistance to small businesses seeking certification to be eligible for additional small business assistance related to this section.

(h) Assist state agencies, in collaboration with the California Disabled Veteran Business Enterprise Program Advocate, appointed pursuant to Section 999.11 of the Military and Veterans Code, and the Small Business Advocate, appointed pursuant to Section 12098.3, in improving small business and disabled business enterprise procurement participation. This shall include outreach and providing technical assistance to small businesses seeking certification to be eligible for additional small business assistance related to this section. In undertaking the requirements of this subdivision, the department and the advocates shall at least annually consider how to align existing programs, services, and initiatives.
(i) As used in this section, “California multiple award schedule program” or “CMAS” means the multiple award schedule program established pursuant to Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code.