Legislative Report

Legislative Update -- August 29, 2026

CSDVB is a strong advocate on behalf of the SB/DVBEs in our state and regularly meets with the Governor’s Office and his Senior Policy Staff on Procurement; CA State Senate and Assembly; Department of General Services; Department of Corrections; Prison Industry Authority; Department of Industrial Relations; Cal/OSHA; Labor Commissioner; Employment Development Department; Franchise Tax Board; and all other agencies, boards, and commissions whose actions affect our CSDVB Membership.

Below are the bills that are of interest to CSDVB’s Members including micro, small and disabled veteran enterprise businesses. We are actively watching all of the bills of interest to the SB/DVBEs and CSDVB Members. This list will be updated each month.

AB 685 (Solache, D) Small Business Development Technical Assistance.

Current Text: 08/27/2026 - Enrollment HTML PDF
Introduced: 02/14/2025
Last Amended: 08/21/2026
Status: 08/27/2026 - In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0.).
Location: 08/27/2026 - Assembly ENROLLMENT
Summary: Existing law establishes the California Small Business Technical Assistance Program (SB-TAP) within the Office of Small Business Advocate (OSBA), under the direct authority of the Small Business Advocate, for the purpose of assisting small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers. Under existing law, OSBA administers the Capital Infusion Program (CIP) pursuant to the SB-TAP, as specified. Existing law sets forth the criteria that an applicant must meet to be eligible to participate in these programs, which can vary depending on whether the applicant is receiving funding from federal or private sources.
This bill would revise certain eligibility criteria for the small business technical assistance center grant programs, as specified. The bill would create uniform eligibility requirements for applicants with funding from a nonstate source. The bill would also authorize multiple small business technical assistance centers to apply as a network with a single fiscal agent if their active contracts are under the same funding authority. The bill would also require the OSBA to establish standardized performance metrics, reporting requirements, and outcome measures applicable to all grant recipients participating in the SB-TAP and would require the OSBA to monitor grant recipients during the grant performance period to ensure their compliance with SB-TAP requirements, as provided. The bill would include findings and declarations by the Legislature relating to the administration of the CIP and would require the OSBA to report its findings and actions and aggregate program outcomes to the Legislature.

AB 2116 (Schiavo, D) Commercial financing.
Current Text: 08/27/2026 - Enrolled HTML PDF
Introduced: 02/18/2026
Last Amended: 08/13/2026
Status: 08/27/2026 - Enrolled and presented to the Governor at 4 p.m.
Location: 08/27/2026 - Assembly ENROLLED
Summary: The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation, including by regulating the provision of commercial loans, as defined. A willful violation of the CFL is a crime, except as specified. This bill would, beginning January 1, 2028, generally provide for the regulation under the CFL of commercial financing, which the bill would define to mean an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose, as specified. Beginning July 1, 2028, the bill would prohibit a person from engaging in the business of a commercial financing provider, as defined, or a commercial financing broker, as defined, without obtaining a license from the commissioner, except as specified. The bill would impose various duties on commercial financing providers and commercial financing brokers.

SB 1240 (McNerney, D) Office of Nonprofit Empowerment.
Current Text: 08/27/2026 - Enrollment HTML PDF
Introduced: 02/19/2026
Last Amended: 08/20/2026
Status: 08/27/2026 - Assembly amendments concurred in. (Ayes 35. Noes 0.) Ordered to engrossing and enrolling.
Location: 08/27/2026 - Senate ENROLLMENT
Summary: Existing law contains numerous provisions authorizing state agencies to award grants or contracts to nonprofit organizations to carry out various services and programs. Existing law authorizes a state agency that administers a grant program or contract to advance funds to a private nonprofit organization to which it has awarded a grant or contract, subject to certain limitations and requirements, as specified.
This bill, upon appropriation by the Legislature, would create the Office of Nonprofit Empowerment within the Government Operations Agency with the primary responsibility of overseeing and coordinating state-level policies and strategies that support California’s nonprofit organizations. The bill would specify various duties and functions of the office, including providing guidance, resources, and technical assistance to nonprofit organizations on procurement and grantmaking laws, regulations, and best practices. The bill would also require the office to develop and administer training and materials, in consultation with the appropriate control agency, for state entities on advance payment and other strategies to reduce hurdles for nonprofit organizations to access state funding and implement state projects, as specified.
The bill would, upon appropriation by the Legislature, place the office under the control of a director who would be appointed by the Governor, as specified, and require the director to hire staff to assist in the fulfillment of the duties and responsibilities of the office. The bill would also require the office to post on its internet website, on or before July 1, 2028, opportunities to improve how nonprofits and the state partner, as specified. The bill would establish the Nonprofit Empowerment Fund in the State Treasury and would make moneys in the fund available, upon appropriation by the Legislature, to carry out the purposes of these provisions in support of the office.

SB 781 (Reyes, D) Small business.
Current Text: 07/14/2025 - Amended HTML PDF
Introduced: 02/21/2025
Last Amended: 07/14/2025
Status: 8/14/2026 Failed Deadline pursuant to Rule 61(b)(14). (Last location was APPR. SUSPENSE FILE on 8/20/2025)
Location: 8/14/2026 A – DEAD
Summary: Current 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. Current 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.

Government Regulations & Contracts

The SBA’s proposal to massively increase small business size standards will have an equally massive impact on federal government contracting. As you probably already know, the U.S. Small Business Administration recently proposed an enormous increases to its small business size standards by 1,000%!

The SBA is proposing to increase the size standard under North American Industry Classification System Code (NAICS) 541511 (Custom Computer Programming Services) from $34 million to $531 million, a jump of more than 1,400%. The size standard under NAICS Code 541611 (Administrative Management and General Management Consulting Services) would be hiked from $24.5 million to $295 million, an increase of over 1,100%. These are some examples of an across-the-board redefinition of what it means to be a “small business.”

We’ll have much more to report on the SBA’s proposed increase to the small business size standards in the September Newsletter!

Regulatory Front – DGS and CSDVB Activity Report

As reported last month, CSDVB has served since 2009 as a lead member of DGS’ Small Business Advisory Council (SBAC) on behalf of all of the Certified Small and Disabled Veteran Businesses to make sure your concerns are heard and acted upon by DGS’ Director. This includes strengthening the enforcement of rules and regulations to ensure more contracting opportunities go to the Certified Small Businesses. The CSDVB and DGS are working on the projects important to all SB/DVBEs included below.

We work closely with DGS to correct inconsistent contracting practices that result in the loss of contracting opportunities for small businesses throughout our state, including our rural and underserved communities. We continue to work with DGS in advocating for the unbundling of contracts so that more small businesses can participate in the solicitation process thereby creating more jobs.

Our goal is to continue working with DGS and to serve on committees that will consolidate the delegated purchasing authority tiers from four to three tiers, and every department in the first tier receive an increase in their delegated purchasing authority. Purchasing tiers are published on the DGS website. Vendors can check departmental authority for direct procurement. We believe that this will increase competitive procurement opportunities for SB/DVBEs.

We succeeded in increasing the Fair and Reasonable threshold, increasing it from $10,000 to $20,000, to allow state departments to procure without full competition under $20K. This will create more opportunities for SB/DVBE who want to contract with the state.

We continue to support improvements to the E-Marketplace online punch-out catalog for state contracts. Phase one was launched in mid-November with enhanced search functionality. This will enable state departments to search by item code that is in a contract by vendor, location, and to access attachments related to those contracts more efficiently.

Cal eProcure remains active and is working on efficiency Improvements in Bid Documentation. This will likely require policy changes and potential legislative changes. DGS is working on reducing redundant documents in bids with the goal to consolidate or embed required documents into state standard terms and conditions, thereby reducing paperwork during the bid process. The objective is to prevent bid rejections due to missing legally required forms. These changes are part of a broader push for efficiency and simplification, with more updates expected in late 2026.

Finally, it is important to note that the end-of-fiscal-year buying cycle is expected to begin around February–March 2026. Departments will be reviewing budgets closely due to fiscal constraints, focusing on essential purchases. The new purchasing authority tiers and SB/DVBE options will be more actively used during this time.

If you haven’t done so already, please join CSDVB! We can only achieve success in our advocacy efforts in the Legislature and through our partnership with DGS with your help! For $100 per year as an Associate Member, you will receive the CSDVB’s monthly to-the-point briefing and update to keep you informed on key legislation, regulations, and DGS’ activities that will affect your ability to grow and thrive.

Formed in 2009 by a small group of small, microbusinesses and disabled veteran business enterprises, the CSDVB is mission-driven to improve state contracting opportunities for small businesses through our highly effective education and advocacy efforts in working with the state legislature, regulators, agencies, boards and commissions on your behalf. The CSDVB has been responsible for securing over $1 billion dollars of contracts with the state.

Our mission is to ensure that ALL contracts are fairly and equitably awarded to Certified Small Businesses, especially when bidding against the large prime vendors, many of whom are located outside of the state.

Most importantly, as a Member you will have exclusive access to the 21,612 Certified Small and Disabled Veteran Businesses, along with connecting you to programs that our business association partners hold each month.

Also, your membership will provide you with the state-of-the-art link to statewide contracts that DGS sends out daily so you will have quick and easy access without having to navigate through DGS’ CalEprocurment system that can take hours to sort and download.

Please join our broad-based Coalition of Certified Small Businesses, Disabled Veteran Businesses, Women-Owned Businesses, and Micro-Businesses today so we can continue our efforts to increase your contracting opportunities with the state while working to make the procurement process more fair, efficient and equitable!

Contact

Coalition of Small &
Disabled Veteran Businesses
P.O. Box 2576
Fresno CA 93745

Email

Phone

info@csdvb.online

(279) 284-4170

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