§ 5060. Proposal Process.

(a) The Director is authorized to adopt a resolution of intent to establish a new Corporation. The resolution shall include the following information:

(1) The geographic service area for the new Corporation;

(2) The date when the Request for Proposal shall be distributed; and

(3) The date when the Proposal shall be due to the Agency.

(b) The geographic service area for a new Corporation shall be based upon the number of small businesses in the area, unemployment levels and the lack of available debt financing for small businesses. The Director shall select the area which he or she believes to be most underserved, using the above described criteria.

(c) Within seven (7) calendar days following the due date for the Proposal the Director shall summarize the Proposals, and determine which Proposer is most likely to meet the Program goals specified in Corporations Code section 14002.

(d) Within thirty (30) calendar days following the Proposal due date, the Director shall present the information contained in subsection (c) to the entire Board.

(e) At the Board meeting where the presentation described in subsection (d) is presented, the Board shall take one of the following actions:

(1) Approve the recommendation of the Director, or if the Director presented more than one recommendation, approve one of the recommendations; or

(2) Not approve the recommendation of the Director, and instruct the Director to submit a new recommendation at a subsequent Board meeting; or

(3) Cancel the Proposal.

(f) If, pursuant to the procedures contained in subsection (e), the Board approves a recommendation of the Director, the Board shall adopt a resolution creating a new Corporation. The resolution shall include the approval of the proposed articles of incorporation, and shall instruct the Director to file the articles with the Secretary of State.

(g) The Agency shall notify all Proposers of the Board's decision within five (5) calendar days.

HISTORY

1. New section filed 6-24-91; operative 7-24-91 (Register 91, No. 42).

2. Amendment filed 6-9-97 as an emergency; operative 6-9-97 (Register 97, No. 24). A Certificate of Compliance must be transmitted to OAL by 10-7-97 or emergency language will be repealed by operation of law on the following day.

3. Reinstatement of section heading and section as they existed prior to 6-9-97 emergency amendment by operation of Government Code section 11346.1(f) (Register 98, No. 30)

4. Amendment of section heading, section and Note filed 7-24-98; operative 7-24-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 30).

5. Amendment filed 12-27-2004 as a deemed emergency pursuant to Corporations Code section 14024; operative 12-27-2004 (Register 2004, No. 53). A Certificate of Compliance must be transmitted to OAL by 6-27-2005 or emergency language will be repealed by operation of law on the following day.

6. Editorial correction of History5 (Register 2005, No. 27).

7. Certificate of Compliance as to 12-27-2004 order, including amendment of Note, transmitted to OAL 5-25-2005 and filed 7-7-2005 (Register 2005, No. 27).

Note

Note: Authority cited: Section 14024, Corporations Code. Reference: Sections 14022, 14025(c), 14025(d), 14045, 14046 and 14050, Corporations Code.