Governor's office of planning and research
Recovery.


REGULATIONS

Many state agencies often develop regulations that impact small business. The Office of Administrative Law (OAL) has the final authority to approve all regulations. It maintains a register of all regulatory actions. The following departments frequently propose regulations that can have a major impact on small businesses. We suggest you check this list regularly.

Occupational Safety and Health Administration

California Environmental Protection Agency

Employment Development Department

California Air Resources Board

Bureau of Automotive Repair

Franchise Tax Board

Department of General Services

Department of Toxic Substance Control

Small Business Advocate's Blog

Stimulus Opportunity Program Events - Jul 2, 2009

I had the pleasure of participating in the Stimulus Opportunity Program being produced by a partnership between California’s Small Business Development Centers and Business Matchmaking (see the June 17th blog, below). The program delivered a great deal of specific and useful information for the business people that attended. State, federal, and local government officials provided a range of ways for businesses to find contracting opportunities, and private sector businesses like American Express, Chevron, American Airlines, and Hewlett Packard also explained how they and other big businesses reach out to small business suppliers. Chuck Ashman of Business Matchmaking and Kristin Johnson of the SBDC network and their staffs were able to provide direct assistance to businesses seeking various opportunities or information right on the spot. I trust that everyone got something valuable from the presentations.

The next event will be at the Scottish Rite Center in San Jose on Thursday, July 9. You must register to attend; all pertinent information can be found here.


Weatherization is Upon Us! - Jun 19, 2009

We recently convened an important conference call regarding the federal stimulus weatherization program. Reneé Webster-Hawkins, Chief Deputy Director for the Department of Community Services and Development (CSD), gave us an in depth perspective on what the weatherization program means to local small businesses, and strategies on how to compete for the weatherization contracts coming to your neighborhood.

The American Recovery and Reinvestment Act (ARRA) has allocated to California an additional $185 million over the next two years for CSD to expand its income weatherization projects; the Department of Energy announced today approval of $74.3 million to fund the program for the next twelve months.

The 40 local action agencies around the state that administer the program have submitted their proposals to CSD on how they plan to apply these funds to their existing programs. They are now preparing to receive the money and start weatherizing homes. For many of the agencies, that includes hiring subcontractors in the form of local small businesses.

The opportunity for small businesses to compete for these contracts is NOW. The first step is to contact your local agency and finding out when they will be sending out bids, what their needs will be, and what you need to do to position your business accordingly.

A list of the local action agencies in your area can be found here, contact information included. Call your respective local action agency and find out more about the weatherization projects coming to your area. Information is the key and this will get you started toward competing for federal stimulus dollars.

Ms. Webster-Hawkins stressed that these programs are part of a larger, more sustained effort to reduce greenhouse gas emissions. Other programs are being managed by the California Energy Commission, the California Public Utilities Commission, and the California Air Resources Board.

As a member of the Green Collar Jobs Council, I am happy to let you know that all these agencies, along with representatives of business and labor, are meeting monthly to help co-ordinate these efforts.



Events About Recovery Act Business Opportunities - Jun 17, 2009

The state’s Small Business Development Centers (SBDCs), in partnership with the non-profit Business Matchmaking, are presenting a series of workshops around the state to provide small businesses with detailed information about potential contracting and other business opportunities coming out of the federal economic stimulus bill.

The first event will be held next week in the Laney Theatre at Laney College in Oakland, from 9:00 am until 1:00 pm. Laney College is part of the Peralta Community College District. We are honored to be hosted by the District President Elihu Harris, and to hear from Congresswoman Barbara Lee. I am excited about participating, and plan to bring up-to-date news about what’s going on at the state level. But there will be insights about all the various sources of stimulus dollars, including from the federal government and local agencies. Information about registration and the agenda, along with a map to the college, can be found here.

Similar events will be held at regular intervals across the state. There is no cost to the participants, but you must register because space is limited. You can contact the
SBDCs and Business Matchmaking for more information.

The next event will be on July 9th in Ventura.

Also, check out the nifty new
projects map on the Governor’s Recovery website.



Updates on Economic Stimulus, the Governor’s Conference, and Other Good Things - May 6, 2009

As I reported several weeks ago, Governor Schwarzenegger appointed me to his Economic Stimulus Task Force, which has been meeting twice a week since its inception in February. The Task Force is led by my immediate boss,
Cynthia Bryant, who is Director of the Office of Planning and Research (OPR) and Deputy Chief of Staff to the Governor. Among our responsibilities is to ensure total transparency of the moneys being spent. One of our key tools is the state’s central Economic Stimulus web site at www.recovery.ca.gov.

My direct task is to work with all of the state agencies that will be managing programs funded by the American Recovery and Reinvestment Act (ARRA) to list and publicize any and all opportunities for small businesses to participate in Stimulus projects.

This is quite a daunting challenge. Congress chose, in crafting the ARRA, to use existing federal programs as vehicles for Stimulus spending, rather than to create entirely new programs. At the same time, it added new strings and conditions to many of those existing programs, which has forced the agencies that administer them to modify their rules for states and local agencies to receive and use the federal dollars. These modifications take time, so the state still doesn’t have guidance about how to spend billions of dollars that we ultimately expect to receive.

What this means for small businesses is that almost all the opportunities to bid for and win contracts from Stimulus projects lie in the future. I and my team are working as quickly as we can to find and publish information about specific projects and chances for contracting. As soon as we can, we will make this information available both on this site and on www.recovery.ca.gov. We also expect other agencies like the Department of General Services to link to the information as well.

I am pleased that OPR has lent us the very capable Brook Taylor to help accomplish this task. Many of you know Brook from the excellent work he did last year on the Governor’s Conference on Small Business & Entrepreneurship. This frees up our wonderful Michael Gonzalez to continue doing all the other things he does to ensure we are serving the state’s small businesses as effectively as possible.

So while we are working on identifying the business opportunities created by ARRA, I strongly urge businesses that have not yet done so to get certified in the state’s small business certification program. You can do so on-line, and if you have the required financial documentation you can accomplish it in about twenty minutes.


Governor’s Conference Update

At our bi-monthly Small Business Advocate’s Advisory Committee meeting on April 21st, I gave an update on the status of the eleven recommendations ratified by the participants in last November’s Governor Conference on Small Business & Entrepreneurship. In the meantime, a number of the caucuses that developed the proposals considered by the general session have continued to meet to move and improve the small business agenda. In addition, two new working groups have been created: Water, which has had several conference calls, and Workers Compensation, which will have its first call next Monday, May 11. We will be posted a complete list of the caucuses, their conveners, and any regular established conference call times soon.

We have also convened a new Steering Committee for the Second Annual Conference on Small Business & Entrepreneurship, which is tentatively scheduled for November 19, 2009, somewhere in the San Francisco Bay area. This will be a one-day event, preceded by an optional evening reception. We will be holding another Steering Committee conference call soon; Michael will send the details as soon as we get it scheduled.

To get on our email distribution list and receive all of our regular updates, please email your contact information to Michael.Gonzalez@opr.ca.gov.


Jobs, Economic Development, and the Economy Committee

Finally, I had the pleasure of testifying yesterday at an informational hearing on small business held by the Assembly Committee on Jobs, Economic Development, and the Economy. The Committee is chaired by V. Manuel Pérez (D-Coachella); its Vice Chair is Dan Logue (R-Yuba City). You can see my testimony here; the hearing begins at 3:00 into the video.

After my testimony, the Committee heard from a number of experts on the current and expected financial and economic conditions that small businesses are operating in. I highly recommend spending some time listening to what they have to say, especially about the impact of the second wave of adjustments to Adjustable Rate Mortgages (ARMs) that began late last year on the stock of working capital for small businesses.



Advisory Council Meeting Agenda - Apr 16, 2009

April 21, 2009
10:00am – 3:00pm
California Community Colleges, Office of the Chancellor
1102 Q Street, Sacramento, CA
Conference Room 3B/C


I. Welcome/Introductions

II. Update on the Governor’s Conference on Small Business & Entrepreneurship/ Status of Recommendations

III. California Federal Economic Stimulus Task Force – Cynthia Bryant, Task Force Chair, Deputy Chief of Staff, Director of the Office of Planning & Research (OPR)

IV. Business, Transportation & Housing (BTH) Agency’s Regional Economies Project – Brian McGowan, Deputy Secretary for Economic Development

V. Update on SBA and the ARRA – Mark Quinn, District Director, U.S. Small Business Administration (SBA) San Francisco District Office

VI. Update on Legislative Approach to ARRA (tentative) – Hon V. Manuel Pérez, Chair of the Assembly Committee on Jobs, Economy, and Economic Development (JEDE)

VII. Study on the Cost of Regulations

VIII. Legislative Update

IX. Next Meeting/Adjournment



Karen Mills Takes Over SBA - Apr 10, 2009

The Senate unanimously confirmed Karen Mills as Administrator of the Small Business Administration on April 2, and she took the oath of office last Monday. You might find her remarks to the Senate Small Business Committee, which recommended her confirmation, enlightening. We look forward to working with her and her new team to help California small businesses find the capital they need to continue to create wealth, provide jobs, and contribute the innovative, can-do spirit that so characterizes the Golden State.

In the meantime, we are happy that SBA San Francisco regional Director Mark Quinn will be joining us at the Small Business Advocate’s advisory committee meeting here in Sacramento on April 21. He will update us on Administrator Mills’ plans and on the SBA’s role in the federal economic stimulus strategy.

The meeting is in Conference Room 3B/C of the Community Colleges Chancellor’s Office, 1102 Q Street, Sacramento, from 10 am – 3 pm. We will post the complete agenda shortly.



KAREN MILLS CONFIRMATION HEARING - Mar 27, 2009

The Senate Committee on Small Business will take up the nomination of Karen Mills to be the Administrator of the Small Business Administration next Wednesday, April 1, at 9:30 am EDT. You can watch the hearing at the Committee’s website. Ms. Mills’ testimony should be quite revealing about her goals and strategy to use the SBA as a vehicle for economic stimulus and recovery.

We all look forward to Ms. Mills assuming this very important position; there’s a lot of work to be done.




California Prepares to Speed Economic Stimulus Dollars to Small Business - Feb 24, 2009

President Barack Obama signed the new federal economic stimulus bill, titled the “American Recovery and Reinvestment Act of 2009,” on February 17. The bill contains a myriad of provisions on hundreds of pages, so determining exactly what the people and businesses of the state of California can expect will take some time to pinpoint.

We have taken a first shot at listing the programs and amounts of money that the bill authorizes and that we expect to impact small businesses. (The rule of thumb about California’s share of any general federal program is roughly 10-12%. That’s just a rough estimate; exact amounts are specified sometimes in the legislation but more usually through formulas that the federal agencies charged with managing the programs and money use).

In the meantime, this office has convened a weekly Interagency Working Group for Small Business Success. This brings together all state agencies whose work impacts the state’s small businesses. We are working first to share information about the specifics of the stimulus programs and second to coordinate how the state will work with the federal government to get the appropriate stimulus funds to the street as quickly and efficiently as possible.

We have also reached out to the Small Business Administration to support their efforts to meet the goals created for them in the stimulus bill. Information on their role in these efforts can be read here.

We will keep you posted about specific programs the state will manage as the information becomes available.




Advisory Group Meeting in Los Angeles - Jan 30, 2009

Yesterday the Small Business Advocate’s Advisory Group met in Los Angeles, graciously hosted by Mr. John Arena and the Metropolitan Water District. We had 22 people in attendance, with another dozen joining us by phone.

It was our first opportunity to gather together since the Governor’s Conference and Small Business & Entrepreneurship last November. It goes without saying that a lot has changed since then, so it was a good opportunity for all of us to catch up on these things.

The meeting had two primary focuses: first, a review of and follow-up to the Governor’s Conference, and second, to reaffirm our mutual agenda for 2009.

I reported on several important matters:
  • Virgil Welch of the California Air Resources Board and I hosted a meeting earlier this month of small business leaders to frame the dialogue on small business participation in the development of regulations for implementing AB 32. The Board passed the final Scoping Plan last month, which provides the framework for the regulations. We will keep everyone posted on next steps.
  • I have convened an interagency working group to help co-ordinate and leverage the efforts of each state department with a small business mission and/or impact. These include the Employment Development Department (EDD); Department of General Services; the Business, Transportation & Housing Agency; the team at the California Community Colleges Economic & Workforce Development Initiative; the California Workforce Investment Board; the California Air Resources Board (CARB); the Department of Veterans Affairs; and the California Public Utilities Commission (CPUC).

    Our first order of business has been to develop an agenda for working closely with the incoming leadership of the Small Business Administration.
  • My primary focus for 2009 is to continue to build the small business network. To that end I encourage everyone to send me or Michael Gonzalez the names and contact information for anyone you think should be part of this network, and we will add them in.
As we discussed network building, several innovative ideas came up, including the development of a master calendar of as many small business events as we at the OSBA are notified of. This will give all small businesses not only information about events they may find useful, but it will give us all a sense of how much is already available, but of which we simply were unaware.

We also discussed the impact of the looming water shortage as a small business issue. Several folks present agreed to serve as co-conveners of a new working group on this issue, including John Arena from MWD.

We discussed the potential for building a database of all the local, regional, and ethnic chambers of commerce statewide to add them to the network. Some people suggested the possibility of a “chamber summit” to focus on the economy.

There is new leadership in both houses of the legislature on the committees that generally oversee small business proposals. The Senate Committee on Business, Professions, and Economic Development is now chaired by Senator Gloria Negrete McCloud; Senator Mark Wyland is the vice chair. The Assembly Committee on Jobs, Economic Development, and the Economy is now chaired by Assemblyman Manuel Perez, with Assemblyman Dan Logue serving as vice chair.

Follow-up on the Governor’s Conference:

I reported that the administration continues its review of the eleven top recommendations from the Governor’s Conference.
  • Already the Air Resources Board added explicit reference to small business concerns and inclusion in its AB32 Scoping Plan. Our communications to the SBA are part of our response to the recommendations from the Access to Capital pod. Several bills have been or will be introduced to respond to the Procurement Caucus’ recommendations, including AB 31 (Price).
  • It is likely that several other bills addressing topics from the conference will be introduced. We are coming up on the “bill deadline” in the legislature; once we pass that we will know which bills we can focus on.
  • Several of the caucuses have continued to meet, and participants present gave updates on the following working groups: Regulatory Reform, Procurement, and Access to Capital. Taxation and AB 32 are also meeting. We regularly send out notices of the working group conference calls. Anyone is welcome to call in and participate.
We have not completely decided on the size and scope of the next Governor’s Conference, but we are currently thinking of a one-day event in San Francisco next November. We expect to have details completed within the month.

Next Meeting:

The Small Business Advocate’s advisory group will next meet on Thursday, March 26, from 11 – 4 in the Executive Dining Room of the Department of General Services in West Sacramento. Mark your calendars; everyone is welcome.


Staying Focused in Economically Challenging Times - Jan 13, 2009

We all know the difficulties many of the state’s small businesses are experiencing today. It is nonetheless a truism that challenging times offer significant opportunities for those entrepreneurs with a little vision and moxie. We thought you might find this article in today’s Los Angeles Times about how some businesses are taking the challenge on being inspirational.


The Governor's Conference on Small Business & Entrepreneurship Nov. 18-19, 2008 Archived Video - Dec 18, 2008

Day one's proceedings of The Governor's Conference on Small Business & Entrepreneurship have been separated into 6 different videos that can be viewed by clicking here.

Note: the Governor's Conference starts with the video entitled, "Welcome Remarks and Conference Overview" and ends with the video entitled, "Young Entrepreneurs."

The second day's events are in the process of being edited and will be available for viewing soon!




The Governor's Conference on Small Business & Entrepreneurship -- Top Ten Policy Recommendations - Nov 21, 2008

1. Ask the Legislature to restore investment in programs that support small businesses.

Action Items:
  • Restore investment in existing SBDC infrastructure to expand support for small business to leverage federal dollars by matching with state funding.
  • Upgrade one SBDC in each of the six SBDC regions to receive accreditation as Small Business Development & Technology Centers (SBDTC) to be a next step for the Technology Accelerators
2. The California Air Resources Board (CARB) should perform a comprehensive assessment of the interim costs for AB 32 implementation that affects small businesses and identify financing programs that could help alleviate those costs.

Action Items:
  • CARB, in collaboration with California’s small business leaders, should developing innovative market mechanisms designed to achieve the mandated emission reduction targets.
  • CARB should provide implementation benchmarks and their implications prior to finalizing timelines for compliance.
  • CARB should work with California small business leadership to develop a dialogue on all policy matters, including the development of regulations pertaining to the implementation of AB 32, and CARB should tailor all information related to AB 32 implementation according to the size of the business and the type of industry impacted.
  • CARB should conduct an economic analysis of near-term, and mid-term costs of AB 32.
3. Small business partnering in the state regulatory process.

Action Items:
  • Hold agencies accountable to small business through the Office of Administrative Law prior to enactment and 3rd party review but subsequent to implementation- Recommend legislation for:
  • Strengthening the authority of Office of Administrative Law
  • Establishing 3rd party criteria protocol
  • Implementing elements of other regulatory flexibility acts
  • Standardize economic impact analysis and review lower cost alternatives
  • Establish review criteria and standardize methodology through enforced use of the APA and conformity amongst regulatory agencies
  • Consider cumulative (multi-agency) effect in economic impact analysis
  • Encourage early and meaningful small business participation in regulation drafting
  • Expand criteria to require small business workshop during regulation drafting through regulation or legislation
  • Consider an executive order to improve agencies notice and outreach processes to be more inclusive through better use of cutting edge technology, making California the leader in small business outreach.
4. Implement a program to ensure that the current laws and regulations regarding SB/DVBE contracting procedures, laws and goals are enforced.

Action Items:
  • Enforce compliance, including, but not limited to CUF, prompt pay and “Loss Leader,” through creating an independent third party auditory review.
5. Enhance and increase funding for loan guarantees and micro lending programs.

Action Items:
  • Support increasing SBA guarantee, decrease loan fees, streamline processes, and facilitate new SBA lenders.
  • Encourage state and federal collaboration to raise loan guarantees to lower lender risk exposure.
  • Increase micro-lending and technical assistance funds.
6. Amend the CA Education Code to state that the priority of the K-16 public education system is to prepare students to compete and contribute to a global economy with the outcome being the ability to demonstrate the applied relevancy of their education.

Action Items:
  • Legislation should be introduced.
7. Create a more effective and transparent system for the setting and monitoring actual utilization of SB/DVBE procurement inclusion goals.

Action Items:
  • Place the Governor's executive order S-O2-O6 into public contract code 10115.
  • Require reporting of actual prime and sub spend vs. promise participation.
  • Set aside contracts under $500,000 for SB/DVBE.
8. The state should shift the Minimum Franchise Tax into a uniform fee applicable to all business entities that incorporate.

Action Items:
  • Legislation should be introduced to eliminate the Minimum Franchise Tax and to increase Secretary of State filing fees for incorporations in an amount that offsets the loss of Minimum Franchise Tax revenue.
9. Subject to significant cost containment small businesses will support legislation that requires shared financial responsibility among all stakeholders (employers, individuals, government, health industry, providers, insurers, etc.) to facilitate health care access for all.

Action Items:
  • Legislation should be introduced
10. Eliminate barriers to capital through restructuring and developing creative forms for financing.

Action Items:
  • Streamline loan agreements, guarantee restrictions, and cost structures.
  • Create more innovative and additional uses of pension funds for small businesses.
  • Establish new public-private funding mechanisms to encourage investments in small businesses including emerging domestic markets and veterans.
11. Execute the process of un-bundling State contracts.

Action Items:
  • Eliminate the practice of strategic sourcing.
  • Review all contracts over $500,000 for un-bundling.


*Please note that 2 recommendations tied for the number 10 spot.



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