BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 184|
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                                 THIRD READING


          Bill No:  AB 184
          Author:   Block (D)
          Amended:  9/4/09 in Senate
          Vote:     27 - Urgency

           
           PRIOR VOTES NOT RELEVANT  


           SUBJECT  :    Budget Act of 2009

           SOURCE  :     Author


           DIGEST  :    This bill specifies that upon the reversion to  
          the General Fund of a total of $8,300,000, the prohibition  
          on the use of state money in the California Small Business  
          Expansion Fund and the reversion requirement shall become  
          inoperative.

           Senate Floor Amendments  of 9/4/09 delete the prior version  
          of the bill, which expressed the intent of the Legislature  
          to enact statutory revisions relating to the 2009 Budget  
          Act, and instead add the current language.

           ANALYSIS  :    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 (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  
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                                                                AB 184
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          of these corporations, among other investments.  Existing  
          law authorizes monies 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 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 the Department of Finance  
          (DOF), to revert to the General Fund.

          This bill:

          1.Requires, as of July 28, 2009, a total of $8,300,000 of  
            state money, as defined, in the Fund, or the trust fund,  
            or both, as determined by the Director of DOF, shall not  
            be available to corporations or to the state for any  
            authorized purposes, and shall instead revert to the  
            General Fund.

          2.Defines "state money" as money that can be reverted to  
            the General Fund.

          3.Specifies this bill shall become inoperative as of the  
            date upon which the reversion is completed, and shall be  
            repealed on January 1 of the next succeeding calendar  
            year.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No


          JJA:cm  9/8/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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