Amended in Assembly January 14, 2014

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

(Principal coauthor: Assembly Member Brown)

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(Coauthors: Assembly Members Daly, Fox, and Medina)

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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. Existing law distinguishes begin delete microenterprises end delete begin insert a microenterprise end insert from begin insert a end insert small begin delete businesses end delete begin insert business end insert or begin delete microbusinesses end delete begin insert microbusiness end insert . Existing law encourages specified local agencies to access, include, and promote local partnerships that invest in microenterprise development, as provided. 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.

This bill would modify the definition of microenterprise to 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 begin delete conventional end delete loans, equity, or other begin delete banking services end delete begin insert financial capital end insert . The bill would delete those provisions expressly distinguishing begin delete microenterprises end delete begin insert a microenterprise end insert from begin insert a end insert small begin delete businesses end delete begin insert business end insert or begin delete microbusinesses end delete begin insert microbusiness end insert . 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 begin delete microbusiness end delete begin insert microenterprise end insert seeking to expand its current business.

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

(1) Has five or fewer employees, including the owner, who may
be part time or full time.

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

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