Bill Text: CA AB1072 | 2021-2022 | Regular Session | Amended

California Assembly Bill 1072 (Prior Session Legislation)

Bill Title: Small businesses: technical assistance: public contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2022-08-11 - In committee: Held under submission. [AB1072 Detail]

Download: California-2021-AB1072-Amended.html

Amended IN Senate August 01, 2022

Amended IN Assembly May 24, 2021

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 Sections ~~12100.62, 12100.63, 12100.69,~~ 12100.63 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.

(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 These provisions are repealed as of January 1, 2024.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, 2026.
(1) Existing law, the California Small Business Development Technical Assistance Act of 2022, creates the California Small Business Technical Assistance Program within the California Office of the Small Business Advocate, to assist small businesses through consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers. Existing law establishes the procedures for application and award of grants under the program, and, among other things, requires the office to evaluate applications received based on prescribed factors. Existing law requires the office to prioritize funding for applications that best meet these factors and give preference to applications that propose new or enhanced services to underserved business groups and businesses in low-wealth, rural, and disaster-impacted communities included in a state or federal emergency declaration or proclamation. Existing law, upon appropriation of funds by the Legislature for the purpose of implementing the act, requires that state funds provided pursuant to the program be used to expand consulting and training services through existing and new centers, as prescribed.
This bill would also require the office to give preference to applications that propose new or enhanced services to disadvantaged business enterprises. The bill would additionally authorize the application of state funds pursuant to the program to specified costs related to activities by the applicant to expand or enhance technical assistance to priority small businesses and to specified costs related to the delivery of consulting and training services.

(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; developing and maintaining an outreach and education program to assist certified small businesses and certified disabled veteran business enterprises to participate in ~~establishing~~ the California multiple award schedule program (CMAS), actively promoting the availability of these suppliers to deliver or provide a broad range of goods and services to governmental agencies through their participation in the ~~CMAS program,~~ CMAS, establishing a training and development program for acquisition professionals, 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’~~ department’s small business advocate to 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 12100.63 of the Government Code is amended to read:

12100.63.

(a) The California Small Business Technical Assistance Program is hereby created within the California Office of the Small Business Advocate.

(b) The program shall be under the direct authority of the 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 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 small business technical assistance center, including a regional or statewide network, operating as a group or as an individual center.

(1) A 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 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 centers in California, administered by and primarily funded by federal agencies, but shall also include other nonprofit small business technical assistance centers, 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. Alternatively, if the applicant is not a federally contracted small business technical assistance center, the applicant shall document a private funding source with similar intent and meet the criteria defined in subdivision (s) of Section 12100.62.

(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. Alternatively, if the applicant is not a federally contracted small business technical assistance center, the applicant shall present a plan of action for drawing down any match required by those private funding sources using local cash match outside of state funds not described in Section 12100.65 during the award period. The office 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 small business technical assistance center, the applicant has demonstrated the ability to fully draw down substantially all federal or private 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, or the private funding sources specified, 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 or private funding sources 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, disadvantaged business enterprises, and businesses in low-wealth, rural, and disaster-impacted communities 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 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) or in any nonfederal small business technical assistance center’s plan.

(2) In addition to other requirements of this article, state funds provided pursuant to the program may do both of the following:
(A) Be applied to costs related to activities by the applicant to expand or enhance technical assistance to priority small businesses, as described in paragraph (2) of subdivision (h), including, but not limited to, marketing, travel, technology, and administrative costs, but those costs shall not exceed 5 percent of the grant awarded pursuant to this article.
(B) Be applied to costs related to the delivery of consulting and training services, including, but not limited to, both of the following:
(i) Activities that assist small businesses to start up and become established, restructure, expand, remain operational, access capital, participate in government procurement opportunities, incorporate and upgrade business-related technology, become competitive and maintain competitiveness in domestic and foreign markets, understand regulatory compliance issues, and become prepared to address future emergencies.
(ii) Activities that assist small businesses to address emergent issues in the marketplace, such as those needed to respond to the state’s transition to a zero-emission economy, cybersecurity threats, and natural disasters and other states of emergency.

(j) Subject to appropriation of necessary funds by the Legislature, a supplemental grant program designated as the California Dream Fund Program shall be established by the office to provide microgrants as described in this subdivision. The microgrants shall be disbursed through California Small Business Technical Assistance Program grantees. California Small Business Technical Assistance Program applicants, as prescribed by the office, may also request state funds designated as the California Dream Fund Program moneys to provide microgrants up to ten thousand dollars ($10,000) to seed entrepreneurship and small business creation in underserved small business groups that are facing capital and opportunity gaps. These microgrants shall be made available to startup clients participating in intensive startup training and consulting with the center networks.

(k) For purposes of implementing the California Dream Fund Program, a person or entity shall not seek information that is unnecessary to determine eligibility, including whether the individual is undocumented. Information that may be collected from individuals participating in the California Dream Fund Program shall not constitute a record subject to disclosure under Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1.

SEC. 2.

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 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 participate in the California multiple award schedule ~~program.~~ program, 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) 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.