Today's Law As Amended


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SB-1018 Salmon fishing: economic aid.(2007-2008)



As Amends the Law Today


SECTION 1.

 Section 14030.5 is added to the Corporations Code, to read:

14030.5.
 (a) As used in this section, the following terms have the following meanings:
(1) “Account” means the Salmon Fishing Aid Revolving Loan Program Account established by subdivision (b).
(2) “Eligible business” means a commercial fisherman or commercial passenger vessel operator operating recreational charter services, or a business directly related to the salmon fishing industry, directly affected by the 2006 National Marine Fisheries Service restrictions on, and closures of, salmon fisheries.
(3) “Loan” means a loan of funds by a corporation pursuant to this section.
(b) (1) The Salmon Fishing Aid Revolving Loan Program Account is hereby created in the expansion fund.
(2) The moneys in the account shall consist of all moneys authorized or required to be deposited in the account by the Legislature.
(3) Notwithstanding Section 13340 of the Government Code, the moneys in the account are hereby continuously appropriated to the agency for payments, with the approval of the Department of Finance, to an administering corporation under contract pursuant to subdivision (c) that will act as trustee of those moneys for the purposes of this section.
(c) The agency shall contract with one or more corporations that are located within an area declared to be in a state of emergency to administer a revolving loan program in accordance with this section. Contracts with corporations to administer this section shall be sole source contracts.
(d) An eligible business may submit an application to a corporation for a loan, at an interest rate and terms established by the agency, for the purpose of financing all or a portion of the costs of economic losses experienced by an eligible business. The application shall be in a form and contain information as prescribed by the agency.
(e) A loan made pursuant to this section shall be used for the purposes specified in the approved application.
(f) If the corporation determines that a loan has been expended for purposes other than those specified in the approved application, it shall immediately request the return of the full amount of the loan. The eligible business shall immediately comply with that request. If the business fails to comply with the request, the corporation shall begin foreclosure on the collateral used to secure the loan.
(g) To execute the revolving loan program established by this section, the agency shall loan funds from the Salmon Fishing Aid Revolving Loan Program Account to corporations on contract with the agency to administer this section that have approved loans to eligible businesses. The amount of the loan shall not exceed the amount of the loan approved by the corporation for the eligible business, and will be based on terms established by the agency.
(h) The loan between the agency and a corporation shall be evidenced by a credit agreement. The agency shall consult with the Department of General Services in the development of the terms and conditions of the credit agreement. All credit agreements under this section between the agency and corporations shall be exempt from Department of General Services approval.
(i) The agency may adopt regulations for the administration of this section. The agency, in the administration of this section, shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(j) This section shall remain in effect until January 1, 2012, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2012, deletes or extends that date.
(k) The repeal of this section does not terminate any of the following rights, obligations, or authorities, or any provision necessary to carry out these rights, obligations, and authorities:
(1) The repayment of loans, outstanding as of January 1, 2012, due and payable from an eligible business to a corporation.
(2) The repayment of loans, outstanding as of January 1, 2012, due and payable from a corporation to the agency.
(3) The resolution of any cost recovery action.

SEC. 2.

 Section 14037.5 of the Corporations Code is amended to read:

14037.5.
 The Director of Finance, with the approval of the Governor, may transfer moneys in the Special Fund for Economic Uncertainties to the Small Business Expansion Fund for use as authorized by the director, in an amount necessary to make loan guarantees pursuant to this chapter, or to make direct loans pursuant to Section 14030.5.
SEC. 3.
 The sum of _____ is hereby appropriated from the General Fund, for programs to mitigate the economic losses resulting from the 2006 National Marine Fisheries Service restrictions on, and closures of, salmon fisheries in this state, to be used as matching funds for related federal appropriations, and shall be available as follows:
(a) _____ to the Department of Fish and Game for the development of a direct grant program or the development of a program that utilizes commercial salmon fishermen to assist in the collection of fisheries data.
(b) _____ to the Department of Fish and Game for grants to support tribal and river community impacts that benefit fisheries.
(c) _____ to the Small Business Expansion Fund for the implementation of Section 14030.5 of the Corporations Code.
SEC. 4.
  This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to mitigate the severe economic losses resulting from the 2006 National Marine Fisheries Service restrictions on, and closures of, salmon fisheries in the state, it is necessary for this measure to take effect immediately.