HomeMy WebLinkAbout2014-06-24 - AGENDA REPORTS - STATE LEGISLATION AB 2717 (6)CONSENT CALENDAR
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SUBJECT:
DEPARTMENT:
Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
June 24, 2014
Michael P. Murphy
STATE LEGISLATION: ASSEMBLY BILL 2717
City Manager's Office
RECOMMENDED ACTION
City Council adopt the recommendation of the City Council Legislative Subcommittee to support
Assembly Bill 2717 (Boma) and transmit position statements to Assembly Member Bonta, Santa
Clarita's state legislative delegation, appropriate legislative committees, Governor Brown, and
the League of California Cities.
BACKGROUND
Assembly Bill 2717 seeks to appropriate $6 million from the State of California General Fund to
the California Economic Development Fund to serve as a cash match for the federal
appropriation supporting the federal Small Business Development Center program in California.
Existing law has created the California Economic Development Fund and authorizes the
Governor's Office of Business and Economic Development (GO -Biz), upon appropriation by the
Legislature, to provide matching funds for loans or grants for economic development purposes.
Since 2003, with the demise of the California Technology, Trade and Commerce Agency, the
State of California has not consistently provided the maximum amount of matching funds
required for the state to receive the maximum amount of federal funds available for the federal
Small Business Development Center program.
AB 2717 seeks to appropriate a full match amount of $6 million to leverage the $12 million in
federal funds potentially available to the State of California. Any federal funds not accessed by
the State of California are distributed to other states.
The Small Business Development Center (SBDC) program provides small businesses with
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assistance in areas such as financing, marketing, business planning, disaster preparedness, and
government contracting. In Santa Clarita, the SBDC provides assistance to small businesses
throughout North Los Angeles County. For example, in 2013, the North Los Angeles County
SBDC served more than 4,000 clients and assisted in the creation of approximately 700 new jobs
in the region. The local SBDC has requested the City Council's support for the legislation.
On May 23, 2014, the Assembly Committee on Appropriations met and held AB 2717 under
submission, effectively killing this bill for the current legislative session. In his May Revise,
Governor Brown proposed $2 million as the state's match. Assuming enactment of the
Governor's proposed match amount, the State of California will only be able to access one-third
of the available federal funding. Assembly Member Jose Medina, Chair of the Assembly
Committee on Jobs, Economic Development and the Economy, has expressed his intention to
continue working throughout the remainder of the current legislative session to position the state
to receive the full amount of federal funding available for the SBDC program.
On June 2, 2014, the City Council Legislative Subcommittee met and recommends to the City
Council that it "support" Assembly Bill 2717. Should Chairman Medina be successful in his
quest to secure the full amount of federal funding, it will occur through another legislative
vehicle other than AB 2717. Support for AB 2717 provides the Council's endorsement for a
future effort during this legislative session for the state to provide the full match amount required
to secure the $12 million federal funding for the Small Business Development Center program.
While the specific amount of additional funding to be received by the local SBDC is presently
unknown, it is likely that the local program will receive some level of additional funding.
ALTERNATNE ACTION
1. Oppose AB 2717
2. Take no position on AB 2717
3. Refer AB 2717 back to the Legislative Subcommittee
4. Other action as determined by the City Council
FISCAL IMPACT
No additional resources, beyond those contained within the adopted FY 13/14 City budget, are
required for implementation of the recommended action.
ATTACHMENTS
AB 2717, As Amended May 27, 2014
AMENDED IN ASSEMBLY MAY 27, 2014
AMENDED IN ASSEMBLY APRIL 23, 2014
AMENDED IN ASSEMBLY APRIL 9, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
CALIFORNIA LEGISLATURE -2013-14 REGULAR SESSION
ASSEMBLY BILL No. 2717
Introduced by Assembly Members Bonta and Skinner
(Principal coauthor: Assembly Member Medina)
(Coauthors: Assembly Members Daly, Fong, Fox, and
V. Manuel Perez)
February 21, 2014
An act relating to economic development, making an appropriation
therefor, and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2717, as amended, Bonta. Small Business Development Center
Program: appropriation.
Existing law establishes the California Economic Development Fund
and authorizes the Governor's Office of Business and Economic
Development, upon appropriation by the Legislature, to provide
matching funds for economic development purposes from that fund.
This bill would appropriate $6 million from the General Fund to the
California Economic Development Fund to provide a cash match for
federal funds to the administrative lead centers that have contracts with
the United States Small Business Administration to administer the
federal Small Business Development Center Program in California,
subject to a specified condition. This bill would become operative only
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AB 2717 —2—
if AB 2670 of the 2013-14 Regular Session is enacted and becomes
operative.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
I SECTION I. (a) Six million dollars ($6,000,000) is hereby
2 appropriated from the General Fund to the California Economic
3 Development Fund, established pursuant to subdivision (a) of
4 Section 13997.6 of the Government Code, to provide a cash match
5 for the administrative lead centers that have contracts with the
6 United States Small Business Administration to administer the
7 federal Small Business Development Center Program in California.
8 Funds shall be awarded only to an administrative lead center that
9 submits written confirmation from the regional administrator of
10 the United States Small Business Administration documenting
11 that the state funds will be matched by federal funds on a
12 one-for-one basis.
13 (b) This act shall become operative only if Assembly Bill 2670
14 of the 2013-14 Regular Session is enacted and becomes operative.
15 SEC. 2. This act is an urgency statute necessary for the
16 immediate preservation of the public peace, health, or safety within
17 the meaning of Article IV of the Constitution and shall go into
18 immediate effect. The facts constituting the necessity are:
19 In order to effectuate the match of federal funds for the
20 administration of the federal Small Business Development Center
21 Program in California in the upcoming federal fiscal year, it is
22 necessary that this act take effect immediately.
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