BILL NUMBER: AB 184 AMENDED
AMENDED IN SENATE SEPTEMBER 4, 2009
Committee on Budget (
Evans (Chair), Arambula, Beall, Blumenfield,
Brownley, Caballero, Carter, De La Torre, Feuer, Hill, Huffman,
Monning, Ruskin, and Swanson )
Assembly Members Block and V. Manuel
( Coauthor: Senator Price
FEBRUARY 2, 2009
An act relating to the Budget Act of 2009.
An act to repeal, add, and repeal Section 14044 of the Corporations
Code, relating to corporations, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 184, as amended, Committee on Budget
Block . Budget Act of 2009. California
Small Business Expansion Fund.
The California Small Business Financial Development Corporation
Law authorizes the formation of small business financial development
corporations to grant loans or loan guarantees for the purpose of
stimulating small business development. The California Small Business
Expansion Fund, which is a continuously appropriated fund created
under that law, provides funds to be used to pay for defaulted loan
guarantees and administrative costs of these corporations, among
other investments. Existing law authorizes moneys in that fund to be
paid out to a lending institution or financial company that will act
as trustee of the funds, as specified. Existing law, effective July
28, 2009, makes state money, as defined, in the California Small
Business Expansion Fund and the trust fund unavailable for new loans,
loan guarantees, or other investments and requires state money not
needed to guarantee existing loans, to administer existing loans, or
for other existing investments, as determined by the Director of
Finance, to revert to the General Fund.
This bill would specify that upon the reversion to the General
Fund of a total of $8,300,000, the prohibition on the use of state
money in these funds and the reversion requirement shall become
inoperative. By making money in excess of that amount available from
the expansion fund for purposes of loans, loan guarantees, and other
investments, the bill would make an appropriation.
This bill would declare that it is to take effect immediately as
an urgency statute.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14044 of the
Corporations Code is repealed.
14044. (a) As of the effective date of the act adding this
section, notwithstanding any other provision of this chapter, state
money in the expansion fund or the trust fund shall not be available
to corporations or to the state to enter into new loans, loan
guarantees, or other investments authorized by this chapter.
(b) State money in the expansion fund and the trust fund that is
not needed to guarantee existing loans, to administer existing loans,
or for other existing investments authorized under this chapter, as
determined by the Director of Finance, shall revert to the General
(c) For purposes of this section, "state money" means money that
can be reverted to the General Fund.
SEC. 2. Section 14044 is added to the
Corporations Code , to read:
14044. (a) As of July 28, 2009, notwithstanding any other
provision of this chapter, a total of eight million three hundred
thousand dollars ($8,300,000) of state money in the expansion fund,
or the trust fund, or both, as determined by the Director of Finance,
shall not be available to corporations or to the state for any
purposes authorized by this chapter, and shall instead revert to the
(b) For purposes of this section, "state money" means money that
can be reverted to the General Fund.
(c) This section shall become inoperative as of the date upon
which the reversion pursuant to subdivision (a) is completed, and
shall be repealed on January 1 of the next succeeding calendar year.
SEC. 3. 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 Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to ensure that revenue intended by the Legislature is
available in the General Fund to support vital programs, it is
necessary that this act take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.