AB 780, as introduced, Bocanegra. Small business financial development corporations.
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. These provisions, including the small Business Loan Guarantee Programs are administered by an executive director, who is appointed by the Secretary of the Business, Transportation and Housing Agency. Commencing July 1, 2013, the duties of the agency with respect to these provisions is vested in the Governor’s Office of Business and Economic Development.
This bill would appropriate $2,000,000 from the General Fund to the Governor’s Office of Business and Economic Development, and would require the Executive Director of the Small Business Loan Guarantee Program to distribute these funds to the financial development corporations, as specified, for their ongoing administrative operations. The bill additionally would make specified declarations of legislative intent regarding the oversight and duties of the Governor’s Office of Business and Economic Development with respect to financial development corporations.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 14063 is added to the Corporations Code,
2to read:
(a) (1) The Legislature finds and declares that the
4workload of California financial development corporations has
5increased significantly since the state’s receipt of funds from the
6federal government pursuant to the Small Business Jobs Act of
72010 (Public Law 111-240).
8(2) It is the intent of the Legislature that financial development
9corporations shall be under the jurisdiction of the Governor’s
10Office of Business and Economic Development. It is further the
11intent of the Legislature that the office shall provide each financial
12development corporation with all appropriate administrative
13support to implement its programs.
14(b) (1) The sum
of two million dollars ($2,000,000) is hereby
15appropriated from the General Fund to the Director of the
16Governor’s Office of Business and Economic Development, for
17the purpose of providing administrative funding to financial
18development corporations under this part. These funds shall be
19allocated to the executive director, who shall distribute one hundred
20fifty thousand dollars ($150,000) to each financial development
21corporation, for expenditure for the purposes described in this
22section, and shall be available for this purpose until the federal
23funding referenced in subdivision (a) has been exhausted.
24(2) Funds provided pursuant to this subdivision shall be used
25to supplement, and shall not supplant, other General Fund or other
26moneys made available for financial development corporation
27administration.
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