Small business.

Senator Reyes proposes expanding California's small business support infrastructure through legislation that authorizes local agencies to establish Small Business Utilization Programs while modifying existing technical assistance frameworks. The bill enables cities and counties to implement certification processes, set procurement participation goals, and create preferences aimed at increasing small business access to government contracts.

The legislation requires the state's Small Business Advocate to collaborate with local agencies on procurement strategies and collect data on small business participation rates. Starting in 2027, the Advocate must issue annual data calls to local agencies and publish reports analyzing procurement activities and best practices within six months.

The bill also adjusts the California Small Business Technical Assistance Program by removing certain federal funding requirements and allowing centers to allocate up to 25 percent of state funds for outreach efforts, with administrative expenses capped at 15 percent. A new California Dream Fund Program would provide microgrants to underserved business groups through technical assistance centers, contingent on legislative appropriation.

Local agencies establishing utilization programs must include specific elements such as a 25 percent minimum procurement goal for small businesses, certification processes aligned with state standards, and policies for unbundling larger contracts. The programs require regular review every four years and verification processes to ensure small business subcontractors perform commercially useful functions in awarded contracts.