Bill Text: CA SB1465 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Food safety: Asian rice-based noodles.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 658, Statutes of 2012. [SB1465 Detail]
Download: California-2011-SB1465-Amended.html
Bill Title: Food safety: Asian rice-based noodles.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 658, Statutes of 2012. [SB1465 Detail]
Download: California-2011-SB1465-Amended.html
BILL NUMBER: SB 1465 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Yee
( Coauthor: Senator Correa
)
( Coauthors: Assembly Members
Ammiano, Blumenfield, Huffman,
and Wieckowski )
FEBRUARY 24, 2012
An act to add Title 10.5 (commencing with Section 91700) to the
Government Code, relating to state government, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1465, as amended, Yee. California Agriculture and
Clean Energy (solar energy), biotech Renewable Energy
Export Loan Guarantee Financing Program.
The California Industrial Development Financing Act
establishes the California Industrial Development Financing Advisory
Commission Pollution Control Financing Authority Act
establishes the California Pollution Control Financing Authority
, consisting of the Treasurer, the Controller, and
the Director of Finance , the Secretary of Business,
Transportation and Housing, and the Commissioner of Corporations
.
This bill would create the California Agriculture and
Clean Energy (solar energy), biotech Renewable Energy
Export Loan Guarantee Financing Program, to be implemented by
the commission California Pollution Control
Financing Authority , to provide small businesses, as defined,
with financial and technical assistance on export opportunities
and techniques, as specified . This bill would also create the
Export Financing Advisory Board, consisting of 11 members appointed
by the Legislature, the Governor, and specified state officials, to
advise the commission authority on
trends and opportunities in export financing. Members of the board
will serve at the pleasure of their appointing authority and
serve without compensation. This bill would also create the
Export Development Fund, a continuously appropriated fund for the
purposes of the program. By creating a continuously appropriated fund
and providing for the deposit of moneys into the fund, this bill
would make an appropriation.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated 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) The great recession that began in 2007 has severely eroded
California's economy , and the state must restore the
agricultural and clean energy (solar energy), biotech
renewable energy manufacturing and production
sectors by retaining jobs and promoting job growth in those sectors,
while improving revenue collections through an export financing loan
guarantee program for those sectors.
(b) International trade and expanding export markets have been an
important part of California's economic prosperity over the last 60
years. This legislation is necessary to assist California's most
successful and promising new and emerging businesses and industries
secure markets outside of the United States. The credit support
provided by this legislation is necessary to facilitate expansion of
financially secure businesses and industries that have insufficient
international experience or access to credit to secure financing from
private sources. The credit support provided by this legislation
will be used to facilitate export expansion and is intended to be
targeted to new or emerging ventures and provide temporary
assistance.
SEC. 2. Title 10.5 (commencing with Section 91700) is added to the
Government Code, to read:
TITLE 10.5. California Agriculture and Clean Energy
(solar energy), biotech Renewable Energy Export
Loan Guarantee Financing Program
91700. The following definitions shall apply to this title:
(a) "Authority" means the California Pollution Control Financing
Authority, established pursuant to Section 44515 of the Health and
Safety Code.
(a)
(b) "Board" means the Export Financing Advisory Board.
(b) "Commission" means the California Industrial Development
Financing Advisory Commission established pursuant to Section 91550.
(c) "Director" means the Executive Director of the California
Agriculture and Clean Energy (solar energy), biotech Export
Loan Guarantee Financing Program Pollution Control
Financing Authority .
(d) "Financial institution" means any bank or savings and loan
association regulated by the state or the federal government
, any insurance company authorized to transact business in the
state, and or any personal property broker or
industrial loan company that is regulated under state law.
(e) "Program" means the California Agriculture and Clean
Energy (solar energy), biotech Renewable Energy
Export Loan Guarantee Financing Program.
(f) "Small business" means an independently owned and operated
business that meets all of the following:
(1) Primarily engaged in agricultural support, production,
processing, and distribution or clean energy
renewable energy manufacturing and production.
(2) Not dominant in its field of operation.
(3) The principal office is located in California and the officers
are domiciled in California.
(4) Together with affiliates it has 100 or fewer employees and has
average gross receipts of ten million dollars ($10,000,000) or less
over the previous three years.
(5) Creates and sells products that are at least 85 percent
produced and manufactured in California.
91701. The California Agriculture and Clean Energy
(solar energy), biotech Renewable Energy Export
Loan Guarantee Financing Program is hereby established in the
California Industrial Development Financing Advisory
Commission Pollution Control Financing Authority
. The purpose of the program is to expand employment and income
opportunities through increased exports of California goods,
services, and agricultural commodities and renewable energy
manufacturing and production by providing small businesses with
financial and technical assistance on export opportunities,
exporting techniques, and financial assistance in support of export
transactions.
91702. The commission authority
shall do all of the following:
(a) Implement this title and promulgate rules and regulations
necessary to carry out the responsibilities under this title,
including, but not limited to, establishing the program to
insure, coinsure, and provide loan guarantees to support
export transactions. The commission authority
shall ensure that the program conforms to international trade
agreements of the United States.
(b) Create advisory groups as necessary to carry out the powers
and duties of the program.
(c) Publish an annual report critiquing the program, the continued
need for the program, and recommended changes to the program. The
report shall include, but not be limited to, an evaluation of the
program's impact on all of the following:
(1) Jobs created in the state by every program participant.
(2) Participation of private banks in export financing programs.
(3) Access by firms located in the state to federal export
financing programs.
(4) Export volume of firms located in the state.
(5) Other economic and social benefits to the state.
(d) Adopt criteria establishing which exporters and export
transactions shall be eligible for the insurance,
coinsurance, and loan guarantees as may be extended by the
commission authority . Pursuant to this
subdivision, the commission authority
shall adopt regulations to ensure that all of the following criteria
are met:
(1) Borrowers have a minimum equity interest in the business as
determined by the commission authority
.
(2) The loan guarantees , insurance, and coinsurance
are extended exclusively to support the export of goods,
services, and agricultural commodities or renewable energy
products produced or grown primarily in the state by companies
or agricultural enterprises commercially domiciled in the state, as
defined in subdivision (b) of Section 25120 of the Revenue and
Taxation Code.
(3) That financing assistance using state funds shall be extended
only if at least one of the following circumstances is met:
(A) Assistance is part of a state match that may be required to
secure participation of California renewable energy firms
or agricultural enterprises in federal, state, or private financing
programs.
(B) If adequate financing assistance is not readily available from
public or private sources in a timely manner.
(e) Adopt collateral or security requirements to ensure the
reasonable expectation of the full repayment of loan guarantees
and solvency of any insurance and coinsurance program
extended under this title and to assist in evaluating the
program.
(f) Consider and approve or reject any and all extensions of
insurance, coinsurance, or loan guarantees under
this title.
(g) In order to expedite the implementation of this title, if a
loan guarantee does not exceed one hundred thousand dollars
($100,000), the commission authority
may elect to delegate this approval authority
authorization to the director. All approvals made by the
director pursuant to this paragraph shall be reported to, and
reviewed by, the commission authority
at its next regular meeting.
(h) Consult with the office of the Governor to ensure that the
respective loan guarantee programs are not duplicative and that each
program makes full use of, to the extent practicable, the resources
of the other.
(i) Work to secure a delegated line of authority
authorization from the United States
Export-Import Bank of the United States in order to take
advantage of this possible new federal funding source.
(j) Develop a streamlined application and review process.
91703. (a) The director shall administer the program and perform
any duties delegated by the commission
authority and shall exercise any other power as may be
necessary to carry out the purposes of this title. The director shall
provide export finance training for program staff and other
individuals involved in export finance assistance, including any
training sessions as may be provided by the United States
Export-Import Bank of the United States , the
United States Department of Commerce, or other organizations.
(b) The director shall have the power and authority
to carry out the following functions:
(1) To establish a network of contacts among those public and
private organizations that provide technical assistance and financial
support of exporting.
(2) To insure, coinsure, and guarantee loans
related to qualified export transactions pursuant to regulations
adopted by the commission authority .
(3) To seek public and private funding sources for the purpose of
guaranteeing loans.
(4) To coordinate to the maximum extent possible the efforts of
the program with programs and goals of the United States
Export-Import Bank of the United States , United
States Department of Commerce, the United States Small Business
Administration, and other private and public programs designed to
provide export assistance and export-related financing.
(5) Certify that exporters who borrow more than two hundred
thousand dollars ($200,000) create at least one job for each
increment thereof and retain those jobs through the repayment period
for the loan.
(6) Certify that exporters who borrow less than two hundred
thousand dollars ($200,000) retain all jobs at the time of
application through repayment of the loan.
(7) Take any other related actions as may be appropriate and
necessary to facilitate sale of export accounts receivable for
exporters located in the state.
(c) The director shall provide administrative assistance to the
board.
91704. (a) The Export Financing Advisory Board is hereby
established. The purpose of the board is to advise the
commission authority on trends and opportunities
in export financing.
(b) The board shall consist of 11 members as follows:
(1) One member appointed by the Secretary of Food and Agriculture
who is knowledgeable about, and experienced in, the exporting and
export finance needs of California agriculture.
(2) Four members representing export firms, two each appointed by
the Governor and the Speaker of the Assembly, who are experienced in
exporting, knowledgeable about the needs and problems of small and
entrepreneurial exporters, and actively employed with an exporting
firm, export trading company, or export management company.
(3) Four members representing financial institutions, two each
appointed by the Governor and the Senate Committee on Rules, who
shall be experienced in export financing, knowledgeable about the
export financing needs and problems of small and entrepreneurial
exporters, and actively employed with financial institutions.
(4) Two members, one each appointed by the Treasurer and the
Controller, who shall be accomplished credit evaluation
representatives experienced in analyzing financial statements, such
as loan applications, and in evaluating the creditworthiness of the
types of loans, loan guarantees, and firms that are likely to come
before the board.
(c) The appointing authorities described in subdivision
(a) (b) shall make their initial board
appointments on or before April 1, 2013.
(d) Upon appointment of at least seven members under subdivision
(a) (b) , the board may commence formal
action pursuant to this title, but in no case shall this be later
than June 1, 2013.
(e) The director shall call the initial meeting of the board and
serve as interim chair of the board until a chair has been elected.
(f) Board members shall serve at the pleasure of the appointing
authority and vacancies shall be filled by the appointing authority.
(g) Board members shall serve without compensation.
91705. The commission authority may
charge fees, in amounts it determines, for loan guarantees
, insurance, and other services provided by the program.
Fees shall be deposited into the Export Development Fund, created
pursuant to Section 91707.
91706. Loan guarantees and insured export transactions
made by the commission authority
under the program shall be secured by no less than 25 percent
reserve in the Export Development Fund established pursuant to
Section 91707. The commission authority
may require a higher reserve. The commission
authority shall adopt regulations on the terms and limits for
loan guarantees, but a loan guarantee shall not exceed any of the
following:
(a) Ninety percent of the required financing. However, the
commission authori ty may
guarantee a higher percentage of the required financing if there is
evidence of lender credit exposure and adequate analysis of foreign
commercial and political risk.
(b) One million dollars ($1,000,000).
(c) The lesser of two years or the useful life of the product.
91707. (a) The Export Development Fund is hereby established in
the State Treasury.
(b) The fund is created for the purpose of receiving the following
moneys for the purposes of this title:
(1) State, federal, and nonpublic moneys.
(2) Insurance premiums and other fees Fees
earned by the program.
(3) Recoveries and collections on claims paid by the program.
(4) Moneys received from the return of investments of money in the
fund.
(c) Notwithstanding Section 13340, moneys in the fund are
continuously appropriated, without regard to fiscal year, for the
purposes of this title.
91708. Moneys in the Export Development Fund shall be paid out by
the Treasurer on warrants drawn by the Controller upon order of the
commission authority in furtherance of
the purposes of this title, including the payment of claims under
a loan guarantee and insurance programs, payments
for reinsurance, and payments required by state, federal,
or private export programs conducted by the commission
authority .
91709. This title shall be implemented only to the extent that
funding is available for that purpose.
