BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1537|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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CONSENT
Bill No: AB 1537
Author: Committee on Jobs, Economic Development, and the
Economy
Amended: 6/25/15 in Senate
Vote: 27
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 6/15/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/18/15 - See last page for vote
SUBJECT: Small Business Financial Assistance Act of 2013:
reports
SOURCE: Author
DIGEST: This bill expands the reporting requirements of the
California Small Business Finance Center to include the
geographic location of businesses assisted by its programs.
ANALYSIS:
Existing law:
1)Establishes the Governor's Office of Business and Economic
Development (GO-Biz) within the Governor's Office for the
purpose of serving as the lead state entity for economic
strategy and marketing of California on issues relating to
business development, private sector investment and economic
growth. GO-Biz also serves as the administrative oversight
for the California Business Investment Service and the Office
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of the Small Business Advocate.
(Government Code (GC) §§ 12096 - 12098.5)
2)Enacts the California Small Business Financial Development
Corporation Law with the intention of promoting the economic
development of small businesses by making available capital,
general management assistance, and other resources, including
loan services, personnel, and business education to small
business entrepreneurs, including women and minority owned
businesses, for the purpose of promoting the health, safety,
and social welfare of the citizens of California, to eliminate
unemployment of the economically disadvantaged of the state,
and to stimulate economic development, employment, minority
group, women, and disabled persons entrepreneurship.
(Corporations Code §§ 14000-14024)
3)Authorizes under the Bergeson-Peace Infrastructure and
Economic Development Bank Act the creation of the
Infrastructure and Economic Development Bank (I-Bank) within
GO-Biz, to promote economic revitalization, enable future
development, and encourage a healthy climate for jobs in
California. (GC § 63000 et seq.)
4)Requires the I-Bank to submit a report to the Governor and
Legislature not later than November 1 of each year containing
information relating to the I-Bank fund and programs. (GC §
63035)
5)Enacts the Small Business Financial Assistance Act of 2013 and
establishes the Small Business Finance Center within the
I-Bank for the purpose of assisting businesses seeking capital
resources not otherwise available in the private markets
including:
a) Loan guarantees and other credit enhancements;
b) Direct loans and other debt instruments;
c) Disaster loan guarantees; and
d) Surety bond guarantees. (GC §§63088-63089.98)
6)Establishes the California Small Business Expansion Fund for
the purpose of retaining the moneys which separately
capitalize the Small Business Loan Guarantee Program (SBLGP)
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and paying out defaulted loan guarantees issued under the
SBLGP. States findings and declarations that the SBLGP has
enabled participating small businesses that do not qualify for
conventional business loans or Small Business Administration
loans to secure funds to expand their businesses. These small
businesses would not have been able to expand their businesses
in the absence of the program. The program has also provided
valuable technical assistance to small businesses to ensure
growth and stability. (GC § 63089.70)
7)Requires the small business finance development corporations
(FDCs) to report annually on their activities financed through
the Small Business Finance Center. (GC § 63089.97)
8)Requires the I-Bank to prepare an annual report to the
Governor and the Legislature that includes the information
provided by the FDCs. (GC § 63089.98)
This bill:
1)Adds a list by city and county of the number and dollar value
of all credit enhancements and debt instruments the
corporation entered into during the report year, and that are
outstanding at the close of the fiscal year to the reporting
requirements of FDCs to the Small Business Finance Center.
2)Adds geographic distribution by city and county of the direct
loans, guarantees, and other financial products awarded and
outstanding at the close of the fiscal year to the reporting
requirements of the I-Bank to the Governor and Legislature.
Comments
According to the author, when FDCs were initially designated,
the designation was for a geographic region. The author states
that today, the FDCs have varying geographic regions including
some that work statewide and that without more information on
their financing activities, it is difficult for the public and
Legislature to evaluate whether all areas of the state are being
served. Some FDCs serve small businesses across the state or
within larger and sometimes overlapping geographic areas in the
state. This change in program delivery necessitates a change
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in reporting and this bill expands reporting requirements for
all programs offered through the Small Business Finance Center,
including the SBLGP, to include the city and county where the
business is located.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
SUPPORT: (Verified7/7/15)
None received
OPPOSITION: (Verified7/7/15)
None received
ASSEMBLY FLOOR: 77-0, 5/18/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez,
Low, Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian,
Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark
Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,
Wood, Atkins
NO VOTE RECORDED: Kim, Mathis, Melendez
Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
7/7/15 17:16:58
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