Bill Text
Bill Start
Amended
IN
Assembly
June 21, 2018 |
Amended
IN
Assembly
June 13, 2018 |
Amended
IN
Assembly
September 06, 2017 |
Amended
IN
Assembly
June 27, 2017 |
Amended
IN
Assembly
June 12, 2017 |
Amended
IN
Senate
April 17, 2017 |
Amended
IN
Senate
April 17, 2017 |
Amended
IN
Senate
March 27, 2017 |
Senate Bill | No. 551 |
Introduced by Senator Hueso |
February 16, 2017 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares as follows:(b)In February 2011, the California Pollution Control Financing Authority was awarded approximately eighty-four million dollars ($84,000,000) pursuant to the State Small Business Credit Initiative (Chapter 54 (commencing with Section 5701) of Title 12 of the United
States Code) for use by the authority in its California Capital Access Program for Small Businesses and the California Capital Access Collateral Support program.
(3)It is intent the Legislature that nothing in this act impede the ability of the CPCFA to operate the California Capital Access Program with other program funds, as well as administering the California Americans with Disabilities Small Business Capital Access Loan Program established in Section 44559.13 of the Health and Safety Code and the California Seismic Safety Capital Access Loan Program established in Section 44559.14 of the Health and Safety Code.
SEC. 2.
Section 63089.1 of the Government Code is amended to read:63089.1.
(a) The program manager acting under theSEC. 3.
Section 63089.4 of the Government Code is amended to read:63089.4.
The bank is authorized to:(c)
(d)
(e)
(f)
(g)
SEC. 4.
Section 63089.5 of the Government Code is amended to read:63089.5.
(a) There is hereby continued in existence in the State Treasury the California Small Business Expansion Fund. All or a portion of the funds in the expansion fund may be paid out, with the approval of the Department of Finance, to a financial institution or financial company that will establish a trust fund and act as trustee of the funds.SEC. 4.SEC. 5.
Section 63089.642 is added to the Government Code, immediately following Section 63089.62, to read:63089.642.
(a) (1) There is hereby created in the(3)The funds in the Capital Access Reserve Fund shall be paid out to a trust fund by the Treasurer on funds drawn by the Controller and requisitioned by the bank.
(b)Capital Access Reserve Fund shall be used for the following purposes:
(1)To fund financial products authorized pursuant to this chapter.
(2)To pay defaults directly related to financial products authorized pursuant to this chapter.
(3)To pay administrative costs of
financial institutions and financial companies, pursuant to the directives and requirements adopted by the bank board.
(4)To pay state support, information technology, and administrative costs related to programs and services authorized pursuant to this chapter.
(5)To pay those costs necessary to protect a real property interest in a financial product default.
(c)(1)The Capital Access Reserve Fund is created for the purpose of receiving state, federal, or local government moneys, and other public or private moneys to make loans, credit enhancements, and other financial products that the California Small Business Finance Center is authorized to provide or manage pursuant to this chapter.
(2)The bank shall provide written notice
to the Joint Legislative Budget Committee, the Chief Clerk of the Assembly, and the Secretary of the Senate, who shall provide a copy of the notice to the relevant policy committees within 10 days of any nonstate funds being deposited in the Capital Access Reserve fund. The notice shall include the source, purpose, timeliness, and other relevant information as determined by the bank board.
(3)(A)
(B)
(4)
(d)The Small Business Finance Center shall manage all moneys in Capital Access Reserve Fund. Interest or income earned on moneys shall be deemed to be part of the fund and used solely for programs, services, and actions authorized pursuant
to this chapter.
(e)(1)Pursuant to the directives and requirements adopted in this chapter, the state has a residual interest in the funds deposited in the trust fund, including any individual accounts, and to the return on these funds from investment. On dissolution, suspension, or termination of an agreement related to a program or service authorized pursuant to this chapter, these funds shall be withdrawn from the applicable account and returned to the Capitol Access Reserve Fund or temporarily transferred to another trust fund account. This provision shall be contained in relevant trust instructions to a trustee.
(2)For the purposes of paragraph (1),the bank may create one or more holding accounts in the Capital Access Reserve Fund, to accommodate the temporary or permanent transfer of funds pursuant to requirements and
directives adopted by the bank board relating to the suspension and termination of a financial institution or financial company’s participation in a program or offering a service authorized under this chapter.
(f)All money in the Capital Access Reserve Fund is hereby continuously appropriated without regard to fiscal years, for the purposes of this chapter.
(g)The state or the bank shall not be liable or obligated in any way beyond the money that is allocated in the Capital Access Reserve Fund for these purposes.
SEC. 5.SEC. 6.
Section 63089.644 is added to the Government Code, immediately following Section 63089.642, to read:63089.644.
(a) TheFunding in the account
(b)The bank
(c)
(a)The bank shall provide the a progress report to the Legislature on the implementation of the transfer of funds and loan portfolios pursuant to Sections 63089.642, 63090, and 63091.
(b)The progress report shall be in the form of a letter submitted to the relevant policy and fiscal committees every six months, and the first letter shall be submitted no later than July 1, 2019, and the last letter shall be submitted and received no later than July 1, 2020.
(c)The report required by this section shall be submitted in compliance with Section 9795.
SEC. 7.
Section 63089.98 of the Government Code is amended to read:63089.98.
(a) Annually, not later than January 1 of each year commencing January 1, 2014, and notwithstanding Section 10231.5, the program manager shall prepare and submit to the Governor and the Legislature, pursuant to Section 9795, a report for the preceding fiscal year ending June 30, containing the expansion fund and trust fund financial product activity of each(b)
SEC. 7.SEC. 8.
Article 12 (commencing with Section 63090) is added to Chapter 6 of Division 1 of Title 6.7 of the Government Code, to read:Article 12. Loan Loss Reserves
63090.
(a) The(5)Annual reporting requirements on the use and outcomes of the program.