Below is a summary of selected legislation from 2021 related to the informational hearing, SSBCI and Inclusive Economic Growth. These include bills related to small business development, including bills related to capital access, technical assistance, and targeted procurement programs.
AB 915 (Chiu and Holden) Minority Procurement Participation: This bill codifies a 25% small business goal for state procurement and proposes a number of actions to enhance the ability and commitment of state agencies to include small businesses, disadvantaged business enterprises (DBEs), and disabled veteran business enterprises (DVBEs) in state contracting. Status: Held in Senate Committee on Appropriations, 2021.
AB 1072 (Reyes) Small Business Technical Assistance Expansion Program: This bill reinforces the ability of the Office of Small Business and DVBE Services to work with awarding departments on certification of small businesses and DVBEs and targeted outreach for upcoming disaster-related contracts. The bill also creates a more decisive programmatic relationship between the state's small business procurement advocates and the statewide network of 80+ small business technical assistance centers, which participate in the Small Business Technical Assistance Expansion Program (SB TAEP). Status: Pending in the Senate Committee on Appropriations.
AB 1106 (Cervantes and Reyes) Training for Rapid Re-Hiring: This bill establishes a pilot project, administered through the Employment Training Panel, to leverage the expertise of the state's regionally-focused statewide network of Community College Contract Education Centers to provide training to new and incumbent workers. Status: Pending in the Senate Committee on Appropriations.
AB 1146 (Cervantes) Commercial Rent Forgiveness: This bill authorizes the establishment of the California Rent Forgiveness and Tax Relief Program for the purpose of providing grants to qualified counties to implement local rent forgiveness and tax relief programs. Status: Held in the Assembly Revenue and Taxation Committee, 2022.
AB 1571 (JEDE) Rational Regulations: This bill delivers regulatory relief to small businesses during a state of disaster by either exempting them from compliance until after the state of emergency or, in the case the regulation is necessary to address the emergency or a serious and immediate health and safety issue, providing small businesses with sufficient time to learn about and implement the new regulation. Status: Held in the Assembly Committee on Appropriations, 2021.
AB 1572 (JEDE) New Market Tax Credit: This bill establishes the California New Market Tax Credit (NMTC) Program and authorizes the awarding of $100 million in tax credits annually for five years, beginning in the 2023 tax year. The purpose of the California NMTC Program is to attract new private capital to small businesses located in very low-income neighborhoods in California. In general, the new state credit parallels the federal NMTC Program. Status: Held in the Assembly Committee on Appropriations, 2022.
AB 1573 (JEDE) Business Retention Program: This bill establishes a supplemental grant program, within Small Business Technical Assistance Expansion Program, for the purpose of providing matching funds for local small business retention programs being administered by local governments, chambers of commerce, economic development corporations, federal small business technical assistance centers, and other nonprofits that serve small businesses. Implementation of the program is contingent upon a supplemental appropriation. Status: Pending in the Senate Committee on Appropriations.
AB 1574 (JEDE) Small Business and DVBE Procurement Participation: This bill, which is the product of input from stakeholders and recommendations from the 2019 State Audit of the DVBE Procurement Program, enhances the ability to prosecute fraudulent contracting activity, increases collaboration among small business and DVBE advocates, and provides more targeted support to awarding departments in achieving small business and DVBE procurement participation goals. Status: Signed by the Governor, 2021.
AB 2019 (Petrie-Norris and Holden) Minority Procurement Participation: This bill codifies a 25% small business goal for state procurement and proposes a number of actions to enhance the ability and commitment of state agencies to include small businesses, disadvantaged business enterprises (DBEs), and disabled veteran business enterprises (DVBEs) in state contracting. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
AB 2226 (Cervantes) California Main Street Program and Cultural Districts: This bill strengthens the linkages between GO-Biz and other state agencies that are also responsible for implementing geographically-based economic development programs, including the Main Street Program and the Cultural Districts. In undertaking these activities, the bill emphasizes the role entrepreneurship can play in creating vital and sustainable communities. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
AB 2314 (Petrie-Norris) Transparent and Fair Lending Practices: This bill sets fair and ethical lending standards for loans issued guarantees under the California Small Business Loan Guarantee Program and financial institutions who participate in the California Capital Access Program. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
AB 2376 (Petrie-Norris) One-Stop Capital Shop: This bill establishes an online platform, the One-Stop Capital Shop, to assist small businesses in accessing safe funding opportunities and to reduce barriers in access to affordable capital. Among other objectives, the One-Stop Capital Shop platform is intended to serve as a loan marketplace that allows small businesses to compare and access public and private financing programs. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
AB 2400 (Cervantes) California Capital Access Program: This bill modifies California Capital Access Program in preparation for state’s receipt of nearly $1.2 billion in federal State Small Business Credit Initiative funds. Proposed changes reflect issues which arose during the first round of SSBCI funding. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
SB 625 (Caballero) California Investment and Innovation Program: This bill establishes the California Investment and Innovation Program for the purpose of providing grants to qualified community development financial institutions. Grant funds may be used by the CDFI to, among other things, provide loans, grants, equity investments, or technical assistance within low-income communities. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
SB 777 (Bradford) California Jumpstart Act: This bill establishes the California Jump Start Tax Credit Program for the purpose of addressing the growing economic hardships California small businesses, workers, and vulnerable communities are grappling with and provide a long-term recovery solution. The purpose of the credit is also to incentivize and mobilize rapid and scalable private sector investment that encourages economic growth beyond the initial relief provided under the federal small business stimulus programs, enabling small business growth, job creation, and relief for families in communities where such economic assistance is needed the most. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.