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
CONTINUED
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repealed on January 1 of the next succeeding calendar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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