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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Hoover and Ahrens</ns0:AuthorText>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Hoover</ns0:Name>
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<ns0:Name>Ahrens</ns0:Name>
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<ns0:Title> An act to amend Section 12098.5 of the Government Code, relating to small businesses. </ns0:Title>
<ns0:RelatingClause>small businesses</ns0:RelatingClause>
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<ns0:Subject>Office of Small Business Advocate: artificial intelligence.</ns0:Subject>
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<html:p>Existing law 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. Existing law requires the advocate to, among other duties, serve as the principal advocate in the state on behalf of small businesses and to represent the views and interests of small businesses before other state agencies policies and activities of which may affect small businesses.</html:p>
<html:p>This bill would enact the AI for Main Street Act, which would require the Small Business Advocate to provide assistance to small businesses in evaluating artificial intelligence concerning operations, including by providing information, guidance, and training, developing training materials, and conducting outreach, as specified.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>This act shall be known, and may be cited, as the AI for Main Street Act.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 12098.5 of the
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is amended to read:
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<ns0:Num>12098.5.</ns0:Num>
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<html:p>In addition to other responsibilities under this article, the advocate shall do the following:</html:p>
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(a)
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Be prepared for designation by the Office of Emergency Services to serve as an official liaison between small businesses impacted by a state-declared state of emergency and other government and nonprofit service providers.
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(b)
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Assist in the state emergency recovery, response, and preparedness efforts related to small businesses, including microenterprises. The advocate’s efforts shall be coordinated and consistent with the Office of Emergency Services, the California Emergency Services Act, and the State of California Emergency Plan.
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(c)
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Conduct at least one
public meeting every year, in coordination with the appropriate state agencies, to share best practices for small business disaster preparedness. The meetings shall be held in consultation with regional and statewide small business organizations and shall take place in different locations throughout the state.
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(d)
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Provide assistance to California small businesses in evaluating artificial intelligence concerning operations, including by doing all of the following:
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<html:p>
(1)
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Providing information, guidance, and training to small business concerns on the use of artificial intelligence, best practices for using artificial intelligence, using artificial intelligence to plan for unexpected circumstances, protecting data and intellectual property, improving cybersecurity, facilitating regulatory compliance, and improving customer trust.
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(2)
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Developing
training materials for incorporating artificial intelligence into business operations.
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(3)
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Conducting outreach to the extent practical to small business concerns regarding the use of artificial intelligence.
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