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HomeMy WebLinkAbout1LDate: Subject: From: By: SUMMARY City Council Staff Report January 14, 2021 CONSENT AGENDA RESOLUTION SUPPORTING SENATE BILL 74 -KEEP CALIFORNIA WORKING ACT David H. Ready, City Manager Marcus L. Fuller, Assistant City Manager RECOMMENDATION: Adopt Resolution No. __ , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUPPORTING SENATE BILL 74 -KEEP CALIFORNIA WORKING ACT." BACKGROUND: COVID-19 has altered nearly every aspect of our lives and brought a halt to much of California's economy. Many small businesses are struggling to survive, and recent data indicates that close to one third of small businesses will not survive beyond January 2021 without additional funding. Non-Profits have also been adversely impacted as their resources and finances have declined . while their demand for services has increased. Small businesses play a major role in California's $3 trillion economy. Businesses with less than 20 employees make up almost 90% of businesses and those with less than 100 employees represent 97.3% of all businesses in the state. As of November 2020, small business revenue was down 33% and in light of the recent increases in COVID-19 cases and new stay at home orders, revenue will likely continue to decrease. A September report from Yelp showed that of the businesses who have closed, 60% have closed permanently. Small businesses employ 35.8% of California's workforce and are a driving force in job creation and tax revenues. Mass closures among small businesses will have devastating long-term impacts on California's economy and job market. 17Et.~ NO. ----- 2City Council Staff Report January 14, 2021 -Page 2 SB 7 4 Support STAFF ANALYSIS: Prioritizing the health and safety of our community while also supporting measures that responsibly and sustainably support our economy is a responsibility of the State Legislature. Now more than ever, California should provide relief to small business and non-profits or risk losing a fundamental component of each community. To that end, a bipartisan effort of the State Legislature has introduced Senate Bill 74 (SB 74) called "Keep California Working Act." As indicated in the Legislative Counsel's Digest: Existing law establishes the Office of Small Business Advocate within the Governor's Office of Business and Economic Development for the purpose of advocating for the causes of small business and to provide small businesses with the information they need to survive in the marketplace. SB 74 will establish the Keep California Working Grant Program. SB 74 will require the Small Business Advocate to administer the program and award grants, of an unspecified amount, to small businesses and nonprofit organizations that have experienced economic hardship resulting from the COVID-19 pandemic. SB 74 will appropriate $2.6 billion to the Office of Small Business Advocate for those purposes. The current text of SB 74 (included as Attachment 1) identifies the following qualifications of this "1st come/ 1st served" small business/ non-profit grant program: • Small business is independently owned and operated, and has fewer than 100 employees; • Small business or non-profit has experienced economic hardship resulting from the COVID-19 pandemic SB 74 declares that it is to take effect immediately as an urgency statute. If enacted, the Small Business Advocate would adopt, as necessary, application procedures, forms, administrative guidelines, and other requirements for purposes of implementing and administering the program. A resolution is proposed for City Council's adoption to affirm its support of SB 7 4 (included as Attachment 2). ENVIRONMENTAL IMPACT: The proposed action (supporting SB 74) is exempt from environmental review requirements of the California Environmental Quality Act ("CEQA") pursuant to Section 15061 (b)(3) of Title 14 of the California Code of Regulations, as there is no possibility that the action will have any effect on the environment. 3City Council Staff Report January 14, 2021 -Page 3 SB 7 4 Support FISCAL IMPACT: SB 7 4, if enacted, will provide $2.6 billion in direct assistance to independently owned and operated small businesses with fewer than 100 employees and non-profits that have sustained financial losses due to the COVID-19 pandemic. This assistance to small businesses and non-profits will have a direct impact on many located in Palm Springs, potentially helping to ensure these small businesses or non-profits do not permanently close due to the COVID-19 pandemic and the resulting emergency orders limiting or closing their operations. SUBMITTED: Marcus L. Fuller, PA, P.E., P.L.S. Assistant City Manager Attachments: 1 . SB 7 4 Legislative Text 2. Resolution David H. Ready,Esq.~ City Manager 4ATTACHMENT 1 5LEGISLATIVE INFORMATION Home I Bill Information California Law I Publications Other Resources My Subscriptions My Favorites SB-74 Keep California Working Act. c2021-2022) SHARE THIS: II Date Published: 12/10/2020 09:00 PM CALIFORNIA LEGISLATURE-2021-2022 REGULAR SESSION SENATE BILL NO. 74 Introduced by Senators Borgeas and Caballero (Coauthors: Senators Bates, Grove, Jones, Melendez, Nielsen, Ochoa Bogh, and Wilk) (Coauthors: Assembly Members Bigelow, Chen, Choi, Davies, Flora, Fong, Gallagher, Eduardo Garcia, Lackey, Mathis, Nguyen, Patterson, Petrie-Norris, Seyarto, Smith, Voepel, and Waldron) December 10, 2020 An act to add Section 12098.8 to the Government Code, relating to COVID-19, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 74, as introduced, Borgeas. Keep California Working Act. Existing law establishes the Office of Small Business Advocate within the Governor's Office of Business and Economic Development for the purpose of advocating for the causes of small business and to provide small businesses with the information they need to survive in the marketplace. This bill, the Keep California Working Act, would establish the Keep California Working Grant Program. The act would require the Small Business Advocate to administer the program and award grants, of an unspecified amount, to small businesses and nonprofit organizations that have experienced economic hardship resulting from the COVID-19 pandemic. The act would appropriate $2.6 billion dollars to the Office of Small Business Advocate for those purposes. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3 Appropriation: yes Fiscal Committee: yes Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. This act shall be known as the Keep California Working Act. SEC. 2. The Legislature finds and declares all of the following: 6(a) COVID-19 has altered nearly every aspect of our lives and brought a halt to much of California's economy. Many small businesses are struggling to survive, and recent data indicates that close to one third of small businesses will not survive beyond January of 2021 without additional funding. Nonprofits have also been adversely impacted as their resources and finances have declined while demand for their services has increased. California has an obligation to support these businesses and nonprofits in reducing their financial burdens as they are forced to alter their operations in order to comply with state mandates. (b) Prioritizing the health and safety of our community while also supporting measures that responsibly and sustainably support our economy is a responsibility we have as a legislative body. We must acknowledge the truly remarkable and selfless ways businesses and their employees have stepped up to serve our communities during this crisis and advocate on their behalf. (c) Now more than ever, California should provide relief to small businesses and nonprofits, or we risk losing a fundamental component of our communities. SEC. 3. Section 12098.8 is added to the Government Code, to read: 12098.8. (a) As used in this section: (1) "Small business" means a business that meets both of the following criteria: (A) The business is independently owned and operated. (8) The business has fewer than 100 employees. (2) "Program" means the Keep California Working Grant Program. (b) The Keep California Working Grant Program is hereby established under the administration of the advocate for the purpose of helping small businesses and nonprofit organizations continue to operate during the COVID-19 pandemic. (c) (1) The advocate shall award a grant, in an amount not exceeding __ dollars ($ __ ), to an applicant who meets both of the following criteria: (A) The applicant is a small business or nonprofit organization. (B) The applicant has experienced economic hardship resulting from the COVID-19 pandemic. (2) The advocate shall award grants on a first-come-first-served basis to applicants who meet the criteria described in paragraph (1). (d) The advocate shall adopt, as necessary, application procedures, forms, administrative guidelines, and other requirements for purposes of implementing and administering the program. All application procedures, forms, administrative guidelines, and other requirements developed by the advocate pursuant to this subdivision shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (e) The sum of two billion six hundred million dollars ($2,600,000,000) is hereby appropriated from the General Fund to the Office of Small Business Advocate for the purpose of administering the program. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are: The COVID-19 pandemic, proclaimed a State of Emergency by Governor Gavin Newsom on March 4, 2020, has devastated California's small business and nonprofit communities. Many have permanently closed, and without additional relief, more will follow. In order to provide timely essential relief to our struggling small businesses and nonprofits, it is necessary that this act take effect immediately. 7ATTACHMENT 2 8RESOLUTION NO. --A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUPPORTING SENATE BILL 74 -KEEP CALIFORNIA WORKING ACT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, AS FOLLOWS: SECTION 1. The City Council of the City of Palm Springs hereby, finds, determines and declares as follows: A. The COVID-19 pandemic has altered nearly every aspect of our lives and brought a halt to much of California's economy. Many small businesses are struggling to survive, and recent data indicates that close to one third of small businesses will not survive beyond January 2021 without additional funding. Non-Profits have also been adversely impacted as their resources and finances have declined while their demand for services has increased. B. Small businesses play a major role in California's $3 trillion economy. Businesses with less than 20 employees make up almost 90% of businesses and those with less than 100 employees represent 97.3% of all businesses in the state. As of November 2020, small business revenue was down 33% and in light of the recent increases in COVID-19 cases and new stay at home orders, revenue will likely continue to decrease. C. On October 9, 2019, the City was awarded Local Equity Grant Funding in the amount of $100,000 from the California Bureau of Cannabis Control (the "Bureau") to implement the City's Program. Pursuant to this grant, the City anticipated funding available for five qualifying Cannabis Social Equity Grant applicants with permit fees of $20,000 each. D. A September report from Yelp showed that of the businesses who have closed, 60% have closed permanently. Small businesses employ 35.8% of California's workforce and are a driving force in job creation and tax revenues. Mass closures among small businesses will have devastating long-term impacts on California's economy and job market. E. Prioritizing the health and safety of our community while also supporting measures that responsibly and sustainably support our economy is a responsibility of the State Legislature. Now more than ever, California should provide relief to small business and non-profits or risk losing a fundamental component of each community. F. To that end, a bipartisan effort of the State Legislature has introduced Senate Bill 7 4 (SB 7 4) called "Keep California Working Act." As indicated in the Legislative 9Counsel's Digest, SB 7 4 will require the Small Business Advocate to administer the program and award grants, of an unspecified amount, to small businesses and nonprofit organizations that have experienced economic hardship resulting from the COVID-19 pandemic. SB 74 will appropriate $2.6 billion to the Office of Small Business Advocate for those purposes. SECTION 2. The City Council of the City of Palm Springs affirms its support of SB 7 4 -Keep California Working Act, and urgently requests the State Legislature to approve, pass and enact SB 7 4 to provide financial assistance to the many small businesses and non-profit organizations located in communities like Palm Springs that have been devastated by the financial impacts caused by the emergency orders adopted by the State of California to mitigate, contain and prevent the continued spread of the COVID-19 pandemic that have otherwise also restricted or closed many of our small business or non-profit organization operations. SECTION 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk of the Council shall attest to and certify the vote adopting this Resolution. The City Council directs the City Clerk to transmit copies of this Resolution to the State Legislature and Governor upon this Resolution's passage. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 14TH DAY OF JANUARY, 2021. ATTEST: Anthony J. Mejia, City Clerk David H. Ready, Esq., Ph.D. City Manager 10CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. __ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January 14, 2021, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anthony J. Mejia, City Clerk City of Palm Springs, California