Sunday, 28 November 2021

Governor

On behalf of Gov. Arnold Schwarzenegger, the Governor’s Small Business Advocate Marty Keller received the top small business economy policy recommendations produced by participants at the first-ever Governor’s Conference on Small Business and Entrepreneurship.


“Employing more than 52 percent of California’s workforce, small businesses are the driving force of our economy – and they will be the driving force behind our economic recovery,” said Marty Keller, the governor’s small business advocate. “I would like to thank the participants of the first-ever Governor’s Conference on Small Business and Entrepreneurship for their participation and thoughtful recommendations for how we can work together to further the small business economy in California - and maintain our state’s leadership in the global economy.”


The first-ever Governor’s Conference on Small Business and Entrepreneurship was held in Los Angeles Nov. 18 and 19.


The governor invited small business leaders and entrepreneurs representing the spectrum of the state's economy to make recommendations on how to improve the partnership between the private sector and state government to stimulate the economy.


Since May, individuals from these groups prepared over 100 draft proposals for consideration and prioritization by conference participants.


At the conference, participants discussed, revised and voted on the prioritization of these recommendations – yielding top recommendations to submit to the governor for consideration.


Small businesses comprise 98 percent of all enterprises in California. With more than 3.6 million small businesses in the state, they employ more than 52 percent of the state’s workforce.


Policy recommendations:


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 third 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


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'sexecutive 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. TX-1: 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. HC-1: 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. AC-2: 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. PR-2: 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.


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