BILL NUMBER: AB 201 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2013
INTRODUCED BY Assembly Member Holden
JANUARY 29, 2013
An act to amend Sections 14010, 14021, and
Section 14025 of the Corporations Code, relating to
corporations.
LEGISLATIVE COUNSEL'S DIGEST
AB 201, as amended, Holden. Small business financial development
corporations.
Existing law, the
The California Small Business Financial Development
Corporation Law , creates the California Small Business
Board and the California Small Business Expansion Fund. Existing law
authorizes the formation of small business financial
development corporations to grant loans from, or guarantee loans made
by a financial institution or financial company against, moneys
awarded to the corporation from the expansion
a specified fund for the purpose of stimulating small business
development. Existing That law
authorizes or requires the director designated by the
Secretary of Business, Transportation and Housing , as
designated, to perform specified duties.
This bill would require the director to cause the names
of the financial institutions and financial companies making direct
loans under the program to be posted on the agency's
main tain an Internet Web site that would
include, in a specified manner, information on the programs
administered through the statewide network of small business
financial development corporations, including loan guarantees, direct
lending, surety bond guarantees, and disaster loans . This
bill would also make conforming changes based on the Governor's
Reorganization Plan Number 2 of 2012.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14010 of the Corporations
Code is amended to read:
14010. Unless the context otherwise requires, the definitions in
this section govern the construction of this part.
(a) "Corporation" or "the corporation" means any nonprofit
California small business financial development corporation created
pursuant to this part.
(b) "Financial institution" means banking organizations including
national banks and trust companies authorized to conduct business in
California and state-chartered commercial banks, trust companies, and
savings and loan associations.
(c) "Financial company" means banking organizations including
national banks and trust companies, savings and loan associations,
state insurance companies, mutual insurance companies, and other
banking, lending, retirement, and insurance organizations.
(d) "Expansion Fund" means the California Small Business Expansion
Fund.
(e) Unless otherwise defined by the director by regulation, "small
business loan" means a loan to a business defined as an eligible
small business as set forth in Section 121.3-10 of Part 121 of
Chapter 1 of Title 13 of the Code of Federal Regulations, including
those businesses organized for agricultural purposes that create or
retain employment as a result of the loan. From time to time, the
director shall provide guidelines as to the preferred ratio of jobs
created or retained to total funds borrowed for guidance to the
corporations.
(f) "Employment incentive loan" means a loan to a qualified
business, as defined in subdivision (h) of Section 7082 of the
Government Code, or to a business located within an enterprise zone,
as defined in subdivision (b) of Section 7072 of the Government Code.
(g) "Loan committee" means a committee appointed by the board of
directors of a corporation to determine the course of action on a
loan application pursuant to Section 14060.
(h) "Board of directors" means the board of directors of the
corporation.
(i) "Board" means the California Small Business Board.
(j) "Agency" means the Business and Consumer Services Agency.
(k) "Director" means the person designated to this title by the
secretary.
( l ) "Secretary" means the Secretary of
Business and Consumer Services.
(m) "Trust fund" means the money from the expansion fund that is
held in trust by a financial institution or a financial company. A
trust fund is not a deposit of state funds and is not subject to the
requirements of Section 16506 of the Government Code.
(n) "Trust fund account" means an account within the trust fund
that is allocated to a particular small business financial
development corporation for the purpose of paying loan defaults and
claims on bond guarantees for a specific small business financial
development corporation.
(o) "Trustee" is the lending institution or financial company
selected by the office to hold and invest the trust fund. The
agreement between the agency and the trustee shall not be construed
to be a deposit of state funds.
SEC. 2. Section 14021 of the Corporations Code
is amended to read:
14021. The board consists of the following membership:
(a) The Secretary of Business and Consumer Services or his or her
designee.
(b) Six members appointed by the Governor, one of whom will serve
as chair of the board, who are actively involved in the California
small business community.
(c) Two persons actively involved in the business or agricultural
communities, one appointed by the Speaker of the Assembly and one
appointed by the Senate Committee on Rules.
(d) Two Members of the Legislature or their designees, one
appointed by the Speaker of the Assembly and one appointed by the
Senate Committee on Rules, shall serve on the board insofar as it
does not conflict with the duties of the legislators.
SEC. 3. SECTION 1. Section 14025 of
the Corporations Code is amended to read:
14025. The director shall do all of the following:
(a) Administer this part.
(b) In accordance with program resources, stimulate the formation
of corporations and the use of branch offices for the purposes of
making this program accessible to all areas of the state.
(c) Expeditiously approve or disapprove the articles of
incorporation and any subsequent amendments to the articles of
incorporation of a corporation.
(d) Require each corporation to submit an annual written plan of
operation.
(e) Review reports from the Division of Financial Institutions
within the Department of Business Oversight, and inform corporations
as to what corrective action is required.
(f) Examine, or cause to be examined, at any reasonable time, all
books, records, and documents of every kind, and the physical
properties of a corporation. The inspection shall include the right
to make copies, extracts, and search records.
(g) Cause the names of the financial institutions and financial
companies making direct loans under the program to be posted on the
agency's Internet Web site.
(g) Maintain or cause to be maintained an Internet Web site that
includes information on the programs administered through the
statewide network of small business financial development
corporations. Programs covered shall include loan guarantees, direct
lending, surety bond guarantees, and disaster loans. Information
shall be presented in a manner appropriate to address the needs of
both small businesses and existing and potential financial
institutions and financial companies.