Existing law establishes the Office of Small Business Advocate within the Governors Office of Business and Economic Development, and prescribes the duties and functions of the Small Business Advocate, who is also the Director of the Office of Small Business Advocate. Existing law requires the Small Business Advocate to, among other things, serve as the principal advocate on behalf of small businesses and to represent the views and interests of small businesses, among other duties. Existing law establishes the California Small Business Technical Assistance Program within the Office of the Small Business Advocate, 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.

This bill would establish the Small Business Retail Theft Solutions Grant Program, within the Office of the Small Business Advocate, for the purpose of assisting small businesses prevent and recover from retail theft. The bill would require the office, in implementing the program, to consult with local, regional, federal, and other state public and private entities that share a mission to support the needs of small businesses in California. Upon appropriation of funds by the Legislature for implementing these provisions, the bill would require the office to make grants to small businesses to expand the capacity of small business to prevent and recover from retail theft.

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 949

Author:(Schiavo) – As Introduced Ver:February 20, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill creates the Small Business Retail Theft Solutions Grant Program within the Office of the Small Business Advocate (CalOSBA).

Specifically, this bill requires CalOSBA, upon appropriation by the Legislature, to make grants of unspecified amounts to small businesses to expand the capacity of small business to prevent and recover from retail theft. The bill directs CalOSBA, in implementing the grant program, to consult with local, regional, federal and other state public and private entities that share a similar mission to support the needs of small businesses in California.

FISCAL EFFECT:

Cost pressure in the millions to tens of millions of dollars, one-time, to fund the grant program and its administration (General Fund, federal funds or special funds).

COMMENTS:

The author intends this bill to ensure small businesses “receive the support and opportunities they need to thrive.”

CalOSBA, within the Governor’s office of Business and Economic Development (GO-Biz), describes its mission as “to help all California small business-owners find and navigate resources, programs and regulations so they can start, manage, grow, become more resilient, and thrive.” CalOSBA has administered a variety of grant programs in recent years, with grant awards totaling in the billions of dollars.

This bill appropriates no funding for the grant program it would have CalOSBA administer.

Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081

Date of Hearing: April 22, 2025

ASSEMBLY COMMITTEE ON ECONOMIC DEVELOPMENT, GROWTH, AND HOUSEHOLD IMPACT

José Solache, Chair

ABPCA Bill Id:AB 949 (

Author:Schiavo) – As Introduced Ver:February 20, 2025

SUBJECT: Small Business Retail Theft Solutions Grant Program

SUMMARY: AB 949 would establish the Small Business Retail Theft Solutions Grant Program within the Office of the Small Business Advocate to help small businesses prevent and recover from retail theft.

Specifically, this bill:

1. Establishes the Small Business Retail Theft Solutions Grant Program, within the Office of the Small Business Advocate, for the purpose of assisting small businesses prevent and recover from retail theft.
2. Requires the office, implementing the program, to consult with local, regional, federal, and other state public and private entities that share a mission to support the needs of small businesses in California. Upon appropriation of funds by the Legislature for implementing these provisions.
3. The bill would require the office to make grants to small businesses to expand the capacity of small businesses to prevent and recover from retail theft.

EXISTING LAW:

1. Establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, and prescribes the duties and functions of the Small Business Advocate, who is also the Director of the Office of Small Business Advocate. 
2. Requires the Small Business Advocate to, among other things, serve as the principal advocate on behalf of small businesses and to represent the views and interests of small businesses, among other duties.
3. Establishes the California Small Business Technical Assistance Program within the Office of the Small Business Advocate, 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.

FISCAL EFFECT: Unknown

COMMENTS: According to a new NRF study conducted in partnership with the Loss Prevention Research Council and sponsored by Sensormatic Solutions, retailers surveyed experienced a 26% increase in average shoplifting incidents from 2022 to 2023, while 42% of retailers reported an increase in shoplifting events that involved the threat or act of violence.

According to the Little Hoover Commission’s 2024 report on Retail Theft, “Retail theft’s most direct consequences are the losses experienced by businesses. Some businesses have cited theft as a reason for closing stores. Mom-and-pop businesses, often operating on razor-thin margins, have a smaller safety net than national retailers to recover from these losses.

In addition to the immediate monetary losses, there are indirect costs associated with retail theft, such as enhanced security measures and an increase in insurance premiums. In extreme cases, these cumulative expenses can result in business closures, subsequently affecting local employment.

The effects aren’t limited to businesses. Losses due to theft are often recuperated through higher prices. This can be particularly challenging for economically vulnerable populations. Furthermore, frequent incidents of theft can lead to an unpleasant shopping experience, characterized by a visible security presence, locking items away from customers, and other measures resulting in a perceived decline in customer service. This, in turn, can lead consumers to shop elsewhere, further harming the store’s bottom line.”

California is home to a range of small business technical assistance centers (“Centers”) that provide free or low-cost one-on-one, confidential consulting and training to help small businesses and entrepreneurs start, grow and expand, and create jobs in California. These Centers are funded in part by federal and private funding sources and are a crucial aspect of the support system for small business growth and entrepreneurship across the State.

TAP provides state funding to support direct services to small businesses and entrepreneurs including through expansion of services to underserved businesses and regions. The program is intended for established Centers with a track record of high-quality technical assistance work. In addition, the program is intended for centers with the capacity to build on existing work, expand to serve California’s underserved business groups, and ensure equitable access and opportunity for all California small businesses. Small Business Development Centers (SBDCs) are a part of the TAP network.

Currently, SBDCs can offer technical assistance related to retail theft prevention, but their focus is on business management and operations, not direct law enforcement. They can help businesses implement strategies to reduce theft, such as improved security measures, training for employees, and better inventory management. They can also help businesses understand and navigate relevant legal and financial aspects related to theft and recovery.

Author’s Statement: “My priority in our office is to ensure that everyone in our community has access to state funding and grants while actively facilitating information sharing. I am committed to making sure small businesses, especially those that may not always be aware of available resources, receive the support and opportunities they need to thrive”.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Carla Castilla/ E.D., G., & H.I. / (916) 319-2090