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Committee advances SB 781 to create local small‑business utilization programs and shore up assistance

5329675 · July 8, 2025
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Summary

SB 781, carried on behalf of Sen. Reyes, would create a Small Business Utilization Program and protect technical assistance funding; the committee passed the bill as amended to local government.

On July 11, 2025 the Assembly committee voted to pass SB 781, carried by proxy on behalf of Senator Reyes, as amended to the Local Government Committee. The bill would authorize local governments to adopt small business utilization plans, create a Small Business Utilization Program within the Office of Small Business Advocates, and provide temporary protections for the California Small Business Technology Assistance Program (SBTAP) where federal funding has been reduced or canceled.

Speakers representing the California Asian Chamber of Commerce, the California Hispanic Chamber of Commerce and the California African American Chamber of Commerce described the measure as a coordinated approach to increase small and diverse business participation in local procurement. "SB 7 81 provides the framework for a comprehensive local small business procurement program and allocates new resources to support implementation," said Karen Nelson of the California Asian Chamber.

Supporters listed specific program elements the bill promotes, including small business goals for tracking, safeguards so identified small business subcontractors remain on awarded contracts, unbundling of large procurements, and technical assistance to help small firms compete. Committee members expressed support and several asked to be added as coauthors. The committee moved the bill as amended to the Local Government Committee; the secretary reported the item out of committee, 7‑0.