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AB-1577 Microenterprise development: local partnerships.(2019-2020)

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Date Published: 04/30/2019 08:55 AM
AB1577:v96#DOCUMENT

Amended  IN  Assembly  April 29, 2019
Amended  IN  Assembly  April 10, 2019
Amended  IN  Assembly  April 02, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1577


Introduced by Assembly Member Burke

February 22, 2019


An act to amend Section 18001 repeal Part 4 (commencing with Section 18000) of Division 7 of the Business and Professions Code, and to add Chapter 2 (commencing with Section 15904) to Part 12 of Division 3 of Title 2 of the Government Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


AB 1577, as amended, Burke. Microenterprise development: local partnerships.
Existing law encourages every city, county, and city and county to access microenterprise development in order to create new jobs and income opportunities for individuals of low and moderate income. income and to include microenterprise development as a part of their development strategy. Existing law encourages California communities and the public agencies that serve them to promote local partnerships that invest in microenterprise development. Existing law defines the terms term “microenterprise” and “microenterprise development provider” for these purposes. purposes to mean a sole proprietorship, partnership, limited liability company, or corporation that meets specified requirements, including a requirement that the entity generally lacks sufficient access to loans, equity, or other financial capital.
This bill would move the provisions described above from the Business and Professions Code to the Government Code and would modify the definition of microenterprise by removing the requirement that the entity generally lacks sufficient access to loans, equity, or other financial capital.

This bill, when promoting these local partnerships, would require California communities and the public agencies that serve them to engage, to the extent feasible, microenterprise development providers for input on effective systems to support and effectively partner with microenterprises.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   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) Microenterprises play a vital role in the prosperity of our state, representing over 90 percent of all business firms in the state.
(b) Microenterprise development providers are essential to expanding prosperity equitably by serving women, minorities, and low- or medium-income individuals and assisting those individuals in building their own proprietary business.
(c) Social enterprises further expand equitable prosperity by hiring vulnerable and hard-to-employ individuals in businesses focused on a social mission that often strive to bring self-sufficiency to an individual’s life through stable employment and the teaching of life skills.
(d) Studies examining the impact of social enterprises highlight the positive gains to employees, noting, specifically, that employment among these populations increased from 18 to 51 percent, wage and salary income increased by 268 percent, while decreasing income from government benefits from 71 to 24 percent.
(e) Social enterprises foster economic activity by providing incomes to individuals who otherwise may not be able to find gainful employment; for every $1 spent by a social enterprise, a $2.23 return on investment for society was realized.
SEC. 2.Section 18001 of the Business and Professions Code is amended to read:
18001.

(a)Every city, county, and city and county is encouraged to access microenterprise development in order to create income opportunities and new jobs for individuals of low and moderate income.

(b)Every city, county, and city and county is encouraged to include microenterprise development as a part of their economic development strategy.

(c)California communities and the public agencies that serve them, such as workforce investment boards, community colleges, and local economic development agencies, are encouraged to promote local partnerships that invest in microenterprise development. When promoting these local partnerships, California communities and public agencies that serve them shall engage, to the extent feasible, microenterprise development providers for input on effective systems to support and effectively partner with microenterprises.

SEC. 2.

 Part 4 (commencing with Section 18000) of Division 7 of the Business and Professions Code is repealed.

SEC. 3.

 Chapter 2 (commencing with Section 15904) is added to Part 12 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER  2. Microenterprises

15904.
 For purposes of this part, both of the following definitions shall apply:
(a) “Microenterprise” means a sole proprietorship, partnership, limited liability company, or corporation that has five or fewer employees, including the owner, who may be part time or full time.
(b) “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 microenterprise seeking to expand its current business.

15906.
 (a) Every city, county, and city and county is encouraged to access microenterprise development in order to create new jobs and income opportunities for individuals of low and moderate income.
(b) Every city, county, and city and county is encouraged to include microenterprise development as a part of their economic development strategy to support upward mobility and inclusive economic growth.
(c) California communities and the public agencies that serve them, such as workforce investment boards, community colleges, and local economic development agencies, are encouraged to participate in and promote local partnerships that invest in microenterprise development.