BILL NUMBER: SB 1465 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 18, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Yee
(Coauthor: Senator Correa)
(Coauthors: Assembly Members Ammiano, Blumenfield, Huffman, and
Wieckowski)
FEBRUARY 24, 2012
An act to add Title 10.5 (commencing with Section 91700)
to the Government Code, add Section 14077 to the
Corporations Code, to add Article 4.5 (commencing with Section 12097)
to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government
Code, and to add Section 44559.13 to the Health and Safety Code,
relating to state government, and making an
appropriation therefor economic development .
LEGISLATIVE COUNSEL'S DIGEST
SB 1465, as amended, Yee. California Agriculture and
Renewable Energy Export Loan Guarantee Financing Program.
Export Financing Advisory Board.
(1) 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. That law imposes
certain duties with respect to that program on a director designated
by the Secretary of Business, Transportation and Housing. The
California Small Business Expansion Fund, which is created under that
law and is continuously appropriated, provides funds to be used to
pay for defaulted loan guarantees and administrative costs of these
corporations.
This bill would require the Secretary of Business, Transportation
and Housing or his or her designee, to the extent that the secretary
determines to be practical, enter into loans or loan guarantee
agreements with financial institutions that provide export financing
in the state for the purpose of increasing exports to out-of-state
markets and increasing jobs in California.
(2) The Governor's Office of Business and Economic Development
serves as the Governor's lead entity for economic strategy and the
marketing of California on issues relating to business development,
private sector investment, and economic growth. The office, among
others, makes recommendations to the Governor and the Legislature
regarding policies, programs, and actions to advance statewide
economic goals.
This bill would create the Export Financing Advisory Board within
the Governor's Office of Business and Economic Development to advise
the Secretary of Business, Transportation and Housing, the Governor's
Office of Business and Economic Development, and the California
Pollution Control Financing Authority (authority) on trends and
opportunities in export financing.
(3) Existing law establishes the Capital Access Loan Program for
small businesses, administered by the California Pollution Control
Financing Authority (authority), which provides loans through
participating financial institutions to qualifying small businesses.
This bill would require the authority to, to the extent that the
authority determines to be practical, enter into loans or loan
guarantee agreements with financial institutions that provide export
financing, for the purpose of increasing exports to out-of-state
markets and increasing jobs in California.
The California Pollution Control Financing Authority Act
establishes the California Pollution Control Financing Authority,
consisting of the Treasurer, the Controller, and the Director of
Finance.
This bill would create the California Agriculture and Renewable
Energy Export Loan Guarantee Financing Program, to be implemented by
the California Pollution Control Financing Authority, to provide
small businesses, as defined, with financial and technical assistance
on export opportunities and techniques, as specified. This bill
would also create the Export Financing Advisory Board, consisting of
11 members appointed by the Legislature, the Governor, and specified
state officials, to advise the authority on trends and opportunities
in export financing. Members of the board will serve at the pleasure
of their appointing authority and without compensation. This bill
would also create the Export Development Fund, a continuously
appropriated fund for the purposes of the program. By creating a
continuously appropriated fund and providing for the deposit of
moneys into the fund, this bill would make an appropriation.
Vote: 2/3 majority . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The great recession that began in 2007 has severely eroded
California's economy, and the state must restore the
agricultural and renewable energy manufacturing and
production sectors by retaining jobs and promoting job
growth in those sectors, while improving revenue collections through
an export financing loan guarantee program for those sectors.
will be the principal contributors to the economic
recovery. Underwriting export finance loans is a promising financial
tool to grow manufacturing and production jobs, while generating new
revenues for the state.
(b) International trade and expanding export markets have been an
important part of California's economic prosperity over the last 60
years. This legislation is necessary to assist California's most
successful and promising new and emerging
small businesses and industries to secure markets
outside of the United States beyond its
borders . The credit support provided by this legislation is
necessary to facilitate expansion of financially secure businesses
and industries that have insufficient international experience or
access to credit to secure financing from private sources. The credit
support provided by this legislation will be used to facilitate
export expansion and is intended to be targeted to new or emerging
ventures and provide temporary assistance.
(c) It is the intent of the Legislature that the Governor's Office
of Business and Economic Development use California, national, and
international expertise and state resources to support state entities
that provide export finance support in helping small businesses
succeed in markets beyond California's borders.
SEC. 2. Section 14077 is added to the
Corporations Code , to read:
14077. In connection with his or her duties under this chapter,
the secretary or his or her designee shall, to the extent that the
secretary determines to be practical, enter into loans or loan
guarantee agreements with financial institutions that provide export
financing in the state for the purpose of increasing exports to
out-of-state markets and increasing jobs in California.
SEC. 3. Article 4.5 (commencing with Section
12097) is added to Chapter 1.6 of Part 2 of Division 3 of
Title 2 of the Government Code , to read:
Article 4.5. Export Financing Advisory Board
12097. (a) The Export Financing Advisory Board is hereby created
within the Governor's Office of Business and Economic Development.
The purpose of the board is to advise the Secretary of Business,
Transportation and Housing, the Governor's Office of Business and
Economic Development, and the California Pollution Control Financing
Authority on trends and opportunities in export financing. The
executive director of the California Pollution Control Financing
Agency shall oversee the board.
(b) The board shall consist of 11 members as follows:
(1) One member appointed by the Secretary of Food and Agriculture
who is knowledgeable about, and experienced in, the exporting and
export finance needs of California agriculture.
(2) Four members representing export firms, two each appointed by
the Governor and the Speaker of the Assembly, who are experienced in
exporting, knowledgeable about the needs and problems of small and
entrepreneurial exporters, and actively employed with an exporting
firm, export trading company, or export management company.
(3) Four members representing financial institutions, two each
appointed by the Governor and the Senate Committee on Rules, who
shall be experienced in export financing, knowledgeable about the
export financing needs and problems of small and entrepreneurial
exporters, and actively employed with financial institutions.
(4) Two members, one each appointed by the Treasurer and the
Controller, who shall be accomplished credit evaluation
representatives experienced in analyzing financial statements, such
as loan applications, and in evaluating the creditworthiness of the
types of loans, loan guarantees, and firms that are likely to come
before the board.
(c) The appointing authorities described in subdivision (b) shall
make their initial board appointments before April 2, 2013.
(d) Upon appointment of at least seven members under subdivision
(b), the board may commence formal action pursuant to this title, but
in no case shall this be later than June 1, 2013.
(e) The executive director of the California Pollution Control
Financing Agency shall call the initial meeting of the board and
serve as interim chair of the board until a chair has been elected.
(f) Board members shall serve at the pleasure of the appointing
authority and vacancies shall be filled by the appointing authority.
(g) Board members shall serve without compensation.
SEC. 4. Section 44559.13 is added to the
Health and Safety Code , to read:
44559.13. In connection with its duties under this article, the
authority shall, to the extent that the authority determines to be
practical, enter into loans or loan guarantee agreements with
financial institutions that provide export financing, for the purpose
of increasing exports to out-of-state markets and increasing jobs in
California. All matter omitted in this version of the bill
appears in the bill as amended in the Senate, April 9, 2012. (JR11)