BILL NUMBER: AB 77	CHAPTERED  09/26/00

	CHAPTER   650
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999

INTRODUCED BY   Assembly Member Cardenas
   (Coauthors:  Assembly Members Correa, Hertzberg, and Honda)
   (Coauthors:  Senators Baca, Dunn, and Karnette)

                        DECEMBER 8, 1998

   An act to add Section 14060.6 to the Corporations Code, relating
to small  business development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 77, Cardenas.  Small business development corporations.
   The Small Business Development Corporation Law authorizes the
formation of California small business financial development
corporations, subject to the approval of the California Small
Business Board in the Trade and Commerce Agency, to grant loans or
guarantees for the purpose of stimulating small business development.
  The California Small Business Expansion Fund, created under the
law, provides funds to be used to pay for defaulted loan guarantees
and administrative costs of these corporations.
   Existing law provides that state funds may only be expended for a
small business development corporation established in a location
approved pursuant to a statewide plan.  Existing law requires the
Trade and Commerce Agency to contract for an independent statewide
assessment of capital needs in California as they pertain to the
Small Business Financial Development Corporation program.
   This bill, notwithstanding these provisions, would require the
Trade and Commerce Agency to establish new small business financial
development corporations in San Jose, Santa Ana, the San Fernando
Valley, and Ontario.
   It would also require each of the small business financial
development corporations, upon the recommendation of the California
Small Business Board and at least once each year, to make a
presentation and overview of the corporation's business operations to
the board.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14060.6 is added to the Corporations Code, to
read:
   14060.6.  (a) The Legislature finds and declares that the Small
Business Loan Guarantee Program 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.  The study commissioned by Section
14069.6, as added by Chapter 919 of the Statutes of 1997, documented
the return on investment of the program and the need for its
services.  The value of the program has also been recognized by the
Governor through proposals contained in the May revision to the
Budget Act of 2000 for the 2000-01 fiscal year.
   (b) Notwithstanding Section 14060.5, the Trade and Commerce Agency
shall establish new small business financial development
corporations pursuant to the procedures otherwise established by this
chapter in the following areas:
   (1) San Jose.
   (2) Santa Ana.
   (3) San Fernando Valley.
   (4) Ontario.
   (c) Each of the small business financial development corporations,
upon the recommendation of the board and at least once each year,
shall make a presentation and overview of the corporation's business
operations to the board.