BILL NUMBER: SB 1156	CHAPTERED  07/01/04

	CHAPTER  87
	FILED WITH SECRETARY OF STATE  JULY 1, 2004
	APPROVED BY GOVERNOR  JUNE 30, 2004
	PASSED THE SENATE  JUNE 24, 2004
	PASSED THE ASSEMBLY  JUNE 21, 2004
	AMENDED IN ASSEMBLY  JUNE 9, 2004
	AMENDED IN SENATE  APRIL 26, 2004

INTRODUCED BY   Senator Alarcon
   (Coauthors:  Senators Chesbro and Romero)
   (Coauthors:  Assembly Members Chu and Ridley-Thomas)

                        JANUARY 28, 2004

   An act to add Part 4 (commencing with Section 18000) to Division 7
of the Business and Professions Code, relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1156, Alarcon.  Microenterprise.
   Existing law authorizes the State Department of Social Services,
with the consent of participating counties, to implement
demonstration projects to provide self-employment training and
technical assistance, including microenterprise demonstration
projects, to CalWORKs recipients and persons at risk of receiving
those benefits.
   This bill would encourage cities and counties to access
microenterprise development in order to create new jobs and income
opportunities for individuals of low and moderate income.  The bill
would encourage California communities and the public agencies that
serve them to promote local partnerships that invest in
microenterprise development.


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


  SECTION 1.  The Legislature hereby declares all of the following:
   (a) Microenterprises create jobs, build the economies of
communities, and help individuals and families earn the income needed
to be economically self-sufficient.
   (b) Microenterprises are generally started by individuals of low
and moderate income for the purpose of creating a job or extra income
for themselves and their families.
   (c) Seventy-two percent of low-income microentrepreneurs increased
their household income over five years by an average of eight
thousand four hundred eighty-four dollars ($8,484), and 61 percent
decreased their reliance on public assistance.
   (d) Individuals who seek to create their own employment
opportunities through a microenterprise could benefit from training,
technical assistance, and access to capital.
   (e) Healthy microenterprises are vital to the California economy.

   (f) Between 1995 and 2000, 44 percent of all new job growth in
California was created by microenterprises.
   (g) In 2000, 2.2 million Californians were either self-employed or
working for a microenterprise.
  SEC. 2.  Part 4 (commencing with Section 18000) is added to
Division 7 of the Business and Professions Code, to read:

      PART 4.  MICROENTERPRISES

   18000.  (a) (1) For purposes of this part, "microenterprise" means
a sole proprietorship, partnership, or corporation that meets all of
the following requirements:
   (A) Has fewer than five employees, including the owner.
   (B) Is part time or full time.
   (C) Generally lacks access to conventional loans, equity, or other
banking services.
   (2) Microenterprises are distinct from small businesses or
microbusinesses and include, but are not limited to, businesses that
provide child development services, businesses that provide
landscaping services, businesses that provide building maintenance,
businesses that provide personal and business services,  businesses
that provide specialty food products, and home-based businesses.
   (b) For purposes of this part, "microenterprise development
provider" means a nonprofit or public agency that provides
self-employment training, technical assistance, and access to
microloans to individuals seeking to become self-employed or to
expand their current business.
   18001.  (a) Every city, county, and city and county is encouraged
to access microenterprise development in order to create new jobs and
income opportunities for individuals of low and moderate income.
   (b) Every city, county, and city and county is encouraged to
include microenterprise development as a part of their economic
development strategy.
   (c) California communities and the public agencies that serve
them, such as workforce investment boards, community colleges, and
local economic development agencies, are encouraged to promote local
partnerships that invest in microenterprise development.