BILL NUMBER: SB 1193	CHAPTERED  10/10/01

	CHAPTER  674
	FILED WITH SECRETARY OF STATE  OCTOBER 10, 2001
	APPROVED BY GOVERNOR  OCTOBER 9, 2001
	PASSED THE SENATE  SEPTEMBER 15, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 15, 2001
	AMENDED IN ASSEMBLY  SEPTEMBER 14, 2001
	AMENDED IN ASSEMBLY  JULY 5, 2001
	AMENDED IN SENATE  MAY 2, 2001

INTRODUCED BY   Senator Polanco
   (Coauthor:  Assembly Member Firebaugh)

                        MARCH 15, 2001

   An act to amend Section 14060.6 of the Corporations Code, relating
to small business programs.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1193, Polanco.  Small business financial development.
   Existing law requires the Technology, Trade, and Commerce Agency
to establish new small business financial development corporations in
San Jose, Santa Ana, the San Fernando Valley, and Ontario.
   This bill would additionally require that the Secretary of the
Technology, Trade and Commerce Agency establish a new small business
financial development corporation in southeast Los Angeles upon an
appropriation in the annual Budget Act for this purpose.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14060.6 of the Corporations Code is amended to
read:
   14060.6.  (a) The Legislature finds and declares that the Small
Business Loan Guarantee Program has enabled participating small
businesses that do not qualify for conventional business loans or
Small Business Administration loans to secure funds to expand their
businesses.  These small businesses would not have been able to
expand their businesses in the absence of the program.  The program
has also provided valuable technical assistance to small businesses
to ensure growth and stability.  The study commissioned by Section
14069.6, as added by Chapter 919 of the Statutes of 1997, documented
the return on investment of the program and the need for its
services.  The value of the program has also been recognized by the
Governor through proposals contained in the May Revision to the
Budget Act of 2000 for the 2000-01 fiscal year.
   (b) Notwithstanding Section 14060.5, the Technology, Trade, and
Commerce Agency shall establish new small business financial
development corporations pursuant to the procedures otherwise
established by this chapter in the following areas:
   (1) San Jose.
   (2) Santa Ana.
   (3) San Fernando Valley.
   (4) Ontario.
   (c) Upon an appropriation in the annual Budget Act for this
purpose, the Secretary of the Technology, Trade, and Commerce Agency
shall establish a small business financial development corporation in
southeast Los Angeles.
   (d) Each of the small business financial development corporations,
upon the recommendation of the board and at least once each year,
shall make a presentation and overview of the corporation's business
operations to the board.