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REFERENCE TITLE: commerce authority; small business loans |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SB 1079 |
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Introduced by Senator Allen: Representative Crandell
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AN ACT
amending title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41‑1512; relating to small business loans.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1512, to read:
41-1512. Small business loan commission; members; duties; program termination
A. A small business loan commission is established. The commission consists of five voting members of the board who are appointed by the chief executive officer. The chief executive officer shall designate one of the members as chair. The state treasurer shall be an ex officio member without the power to vote. The commission may use the resources of the authority in conducting its business.
B. A majority of voting members constitutes a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the members present at an official meeting is sufficient for any action to be taken.
C. The commission shall keep and maintain a complete and accurate record of all of its proceedings. The commission is subject to title 38, chapter 3, article 3.1, relating to public meetings.
D. Members of the commission are subject to title 38, chapter 3, article 8, relating to conflicts of interest.
E. The purpose of the commission is to establish a small business loan program for corporations, partnerships, limited liability companies, sole proprietorships or individual operating a business for profit in this sate with not more than one hundred employees. The commission shall:
1. Accept loan applicants from small businesses that meet the requirements of this subsection. In addition, an applicant must demonstrate to the commission the past and future ability to create new jobs in this state.
2. Establish application and loan approval criteria.
3. Define terms of the loans.
4. Enter into loan agreements on behalf of this state with approved applicants.
5. Administer the loan through the duration of the loan.
F. Loans approved pursuant to this section shall not exceed a length of five years. Interest paid by an approved small business shall be prescribed at the prevailing rate that financial institutions are charging in the private sector. The commission shall subject an applicant for a loan to the same due diligence that is provided by a financial institution in the private sector.
G. The authority shall make the sum of ten million dollars from the Arizona commerce authority fund established by section 41-1506 available to the commission for the purpose of funding approved loans pursuant to this section.
H. The program established pursuant to this section ends on July 1, 2022 pursuant to section 41‑3102.