BILL NUMBER: SB 1465	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 9, 2012
	AMENDED IN SENATE  MAY 1, 2012
	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  and repeal  Section 14077  to
  of  the Corporations Code,   and to
addSection 44559.13 to the Health and Safety Code, 
relating to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1465, as amended, Yee. Loan programs. 
   (1) The 
    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  , until March 31, 2017,  require the
Secretary of Business, Transportation and Housing or his or her
designee, to the extent that the secretary determines to be
practical, to 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) Existing law establishes the Capital Access Loan Program for
small businesses, administered by the California Pollution Control
Financing 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 qualified loans, as
defined, with financial institutions that provide export financing,
for the purpose of increasing exports to out-of-state markets and
increasing jobs in California. 
   Vote: majority. Appropriation: 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 manufacturing and production 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 small businesses and industries to secure
markets 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) The Governor's Office of Business and Economic Development
uses its expertise and state resources to support small businesses
that need financial assistance and professional advice to succeed in
markets beyond California's borders.
  SEC. 2.  Section 14077 is added to the Corporations Code, to read:
   14077.   (a)    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. 
   (b) This section shall remain in effect only until March 31, 2017,
and as of that date is repealed, unless a later enacted statute,
that is enacted before March 31, 2017, deletes or extends that date.
 
  SEC. 3.    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 a qualified loan, as defined by subdivision (j)
of Section 44559.1, with financial institutions that provide export
financing, for the purpose of increasing exports to out-of-state
markets and increasing jobs in California.