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SPONSOR: |
Salazar |
DATE TYPED: |
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HB |
80/aSCORC |
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SHORT TITLE: |
Small Business Investment Corporation |
SB |
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ANALYST: |
Collard |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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See Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates Senate Bill 10
1988
Responses
Received From
State
Investment Council
Responses
Not Received From
Economic
Development Department
SUMMARY
Synopsis
of SCORC Amendment
The Senate Corporations and Transportation
Committee amendment to House Bill 80 inserts a new Section 8. This section defines the corporation board of
directors as the following individuals or their designee: the state treasurer, the state investment
officer and six members appointed by the governor. The members shall serve at the pleasure of
the governor. The governor’s appointees
will have general expertise in small business management, but cannot work with
businesses receiving investments from the corporation. Further, no two members can represent the
same company, a chairman will be a member who is elected annually by the
members, the board will set its policies and procedures, public members of the
board will receive per diem, and the board will conduct an annual audit, which
will be open to the public.
The amendment also deletes a subsection that permits
equity investments in
OTHER
SUBSTANTIVE ISSUES
It should be noted that
Synopsis
of Original Bill
House Bill 80
clarifies the power, status and permitted investments of the Small Business Investment
Corporation (SBIC). It also requires the
State Investment Council to review SBIC funding once per year and adjust the
funding to one-fourth percent of the market value of the Severance Tax
Permanent Fund if the funding is below this level. Finally, it requires the State Investment
Council to report semi-annually on
ADMINISTRATIVE IMPLICATIONS
The State Investment
Council expects a minor impact in reporting requirements.