Small business.

Plain English Breakdown

The official summary text does not provide detailed information on the specific criteria required for small business certification processes other than a general goal of 25% procurement participation.

Supporting Small Businesses in California

This legislation requires local agencies to collaborate with the Office of Small Business Advocate on strategies to increase small business participation in procurement opportunities and establishes certification processes for small businesses.

What This Bill Does

• Requires the Office of Small Business Advocate to work with local agencies on developing strategies to boost small business involvement in local procurement opportunities.
• Allows local agencies to create a Small Business Utilization Program (SBUP) to help increase small businesses' participation in their procurement processes.
• Recommends that SBUPs establish certification processes for small businesses, aiming for at least 25% of procurement opportunities going to certified small businesses.
• Requires the Office of Small Business Advocate to collect data on local agency efforts to support small businesses and report annually on this information.
• Modifies eligibility criteria for grants in fiscal years 2025-26 through 2027-28, allowing more flexibility in how funds are used.

Who It Names or Affects

• Small business owners who want to get contracts from local agencies.
• Local government agencies that can create SBUPs and work with small businesses.
• The Office of Small Business Advocate which will collect data and report on small business participation in procurement opportunities.

Terms To Know

Small Business Utilization Program (SBUP)

A program set up by local agencies to help increase the number of contracts awarded to small businesses.

Procurement

The process of buying goods or services from suppliers, including small businesses.

Limits and Unknowns

• Local agencies must choose to establish SBUPs and participate in data collection.
• Details about the specific criteria for certification processes are not fully outlined.
• Funding availability is a key factor as some provisions require funding from the Legislature.

Official Summary Text

SB 781, as amended, Reyes.
Small business.
Existing law establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, led by the Small Business Advocate, and sets forth its powers and duties relating to advocacy on behalf of small business and providing small businesses with the information they need to survive in the marketplace. Existing law requires the advocate to, among other duties, collaborate with the Office of Small Business and Disabled Veteran Business Enterprise Services in their activities under the Small Business Procurement and Contract Act, including promoting small business certification.
This bill would require the advocate to also collaborate with local agencies on the development and implementation of local strategies to increase small business participation in local
procurement opportunities, as specified. In this connection, the bill would authorize a local agency, as defined, to establish a Small Business Utilization Program (SBUP) to increase small businesses’ participation in local agency procurement opportunities.
This bill would require an SBUP, to facilitate the participation of small businesses in the provision of goods, information technology, and services to the local agency, to establish a small business certification process. As part of this process, the bill would require the SBUP, to the extent feasible, to include all of specified criteria, including, among other things, a minimum goal of 25% procurement participation for small businesses certification. The bill would authorize a local agency that establishes an SBUP to engage in specified activities to facilitate contract awards to small businesses.
This bill would authorize a local agency to submit information on its
small business procurement participation to the Office of Small Business Advocate, including progress toward meeting utilization goals. The bill would require the Office of Small Business Advocate, subject to funding being available, and upon appropriation by the Legislature for these purposes, to issue its first data call to local agencies by November 15, 2027, and every year thereafter, as specified. The bill would require the Office of Small Business Advocate to prepare an annual report that may contain, among other things, information received from the data call and to post the report on its internet website within 6 months after each data call. The bill would include related legislative findings.
Existing law creates the California Small Business Technical Assistance Program within the California Office of the Small Business Advocate, under the direct authority of the Small Business Advocate. Existing law requires the office to administer
the program to provide grants to expand the capacity of small business development technical assistance centers in
California,
California that are administered by and primarily funded by federal agencies and other nonprofit small business technical assistance centers,
as specified. Existing law sets forth the criteria that an applicant must meet to be eligible to participate in the program.
Existing law authorizes specified state funding provided pursuant to these provisions to be used for outreach efforts.
This bill
would, for grants made in fiscal years 2025–26 through 2027–28, inclusive, establish specified exceptions and modifications to the eligibility criteria.
would remove provisions that require an applicant to provide a plan of action and commitment to fully draw down all specified federal funds available to it, that authorize the office to require an applicant to provide details relating to the source and amount of nonstate funds, and that require an applicant to demonstrate the ability to fully draw down substantially all federal and private funds available to it in order to be eligible to participate in the program. The bill would authorize an applicant to utilize federal and private funding contracts, as specified. The bill would authorize up to 25% of specified state funding awarded pursuant to these provisions to be used for outreach and limit the awarded funds that may be used for direct program administration expenses to 15%.

Current Bill Text

Download Bill PDF