Amended in Assembly January 6, 2014

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 674

Introduced by Assembly Member Quirk-Silva

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(Principal coauthor: Assembly Member Brown)

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February 21, 2013

An act to amend Section 18000 of the Business and Professions Code, relating to small business regulations.

LEGISLATIVE COUNSEL’S DIGEST

AB 674, as amended, Quirk-Silva. Microenterprise.

Existing law defines microenterprise as a sole proprietorship, partnership, or corporation that has fewer than 5 employees, including the owner, and generally lacks access to conventional loans, equity, or other banking services, as provided. begin insert Existing law distinguishes microenterprises from small businesses or microbusinesses. end insert Existing law encourages specified local agencies to access, include, and promote local partnerships that invest in microenterprise development, as provided. begin insert Existing law defines a “microenterprise development provider” to mean a nonprofit or public agency that provides self-employment training, technical assistance, and access to microloans to individuals seeking to become self-employed or to expand their current business. end insert

This bill would begin delete expand end delete begin insert modify end insert the definition of microenterprise to begin delete include those entities that have fewer than 10 employees, including the owner, as prescribed end delete begin insert also include a limited liability company, increase the number of employees to 5 or fewer, and require that the entity generally lack sufficient access to conventional loans, equity, or other banking services. The bill would delete those provisions expressly distinguishing microenterprises from small businesses or microbusinesses. The bill would modify the definition of microenterprise development provider to also include a nonprofit organization or public agency that provides self-employment training, technical assistance, and access to microloans to a microbusiness seeking to expand its current business end insert .

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 18000 of the Business and Professions
Code is amended to read:

18000.  

(a)  begin delete (1) end delete begin delete   end delete For purposes of this part, “microenterprise”
means a sole proprietorship, partnership, begin insert limited liability company, end insert
or corporation that meets all of the following requirements:

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(A)

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begin insert (1) end insert  Has begin delete fewer than 10 end delete begin insert five or fewer end insert employees, including the
owner begin insert , who may be part time or full time end insert .

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(B) Is part time or full time.

end delete begin delete

(C)

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begin insert (2) end insert  Generally lacks begin insert sufficient end insert access to conventional loans,
equity, or other banking services.

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(2) Microenterprises are distinct from small businesses or
microbusinesses and include, but are not limited to, businesses
that provide child development services, businesses that provide
landscaping services, businesses that provide building maintenance,
businesses that provide personal and business services, businesses
that provide specialty food products, and home-based businesses.

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(b) For purposes of this part, “microenterprise development
provider” means a nonprofit begin insert organization end insert or public agency that
provides self-employment training, technical assistance, and access
to microloans to individuals seeking to become self-employed or
to begin insert a microbusiness seeking to end insert expand begin delete their end delete begin insert its end insert current business.