Business investments: Small Business Financial Assistance Act of 2013.

Existing law, the California Small Business Financial Development Corporation Law, creates the California Small Business Board and the California Small Business Expansion Fund, a continuously appropriated fund which includes General Fund moneys. Existing law authorizes the formation of small business financial development corporations to grant loans from, or guarantee loans made by a financial institution or financial company, as defined, against, moneys awarded to the corporation from the expansion fund for the purpose of stimulating small business development. Existing law authorizes a director designated by the Secretary of Business, Transportation and Housing, the latter office abolished by existing law and the Governor's Reorganization Plan No. 2 of 2012, effective on July 3, 2012, and operative July 1, 2013, to perform specified duties under that law. A violation of certain conflict-of-interest provisions by the director and other persons, as specified, is a crime. This bill would revise and recast these provisions, and would transfer the administration of the California Small Business Financial Development Corporation Law to the California Infrastructure and Economic Development Bank (I-Bank) , located within the Governor's Office of Business and Economic Development, and a program manager designated by the executive director of the I-Bank, as specified. The bill would expand the definitions of "financial institution" and "financial company" for those purposes. The bill would also describe the transition of oversight of the Small Business Loan Guarantee Program from the Business, Transportation and Housing Agency to the I-Bank and compliance with federal and state program requirements. Because the above-described conflict-of-interest provisions would apply to the members of the I-Bank's board of directors, the program manager, the executive director, and other officers and employees, as specified, the bill would extend the application of a crime, and impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Because this bill would expand the purposes for which a continuously appropriated fund is expended, the bill would make an appropriation. This bill would declare that it is to take effect immediately as an urgency statute.