Arizona 2023 Regular Session

Arizona House Bill HB2732 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: micro-business loans; report; appropriation State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023 HB 2732 Introduced by Representative Blattman An Act amending title 6, chapter 1, article 3, Arizona Revised Statutes, by adding section 6-139.01; appropriating monies; relating to the department of insurance and financial institutions. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: micro-business loans; report; appropriation
10	10	State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
11	11	HB 2732
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14	14	REFERENCE TITLE: micro-business loans; report; appropriation
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40	40	HB 2732
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66	66	An Act
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70	70	amending title 6, chapter 1, article 3, Arizona Revised Statutes, by adding section 6-139.01; appropriating monies; relating to the department of insurance and financial institutions.
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76	76	(TEXT OF BILL BEGINS ON NEXT PAGE)
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80	80	Be it enacted by the Legislature of the State of Arizona: Section 1. Title 6, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 6-139.01, to read: START_STATUTE6-139.01. Micro-business loan fund; lending requirements; report; definition A. The micro-business loan fund is established consisting of legislative appropriations to provide low-interest loans to community development financial institutions that provide loans to micro-businesses in this state. The DEPARTMENT shall administer The fund, and monies in the fund are CONTINUOUSLY appropriated. Subject to available monies, the department shall lend monies to community development financial institutions. B. The community development financial institution must satisfy the following criteria to qualify for a disbursement from the fund: 1. The institution must have expertise in micro-business loan applications. 2. The institution must have knowledge of micro-business creditworthiness. 3. The institution must establish an administrative system to monitor the micro-business loan. 4. The institution must have knowledge of WHETHER the micro-business loan will generate economic development and jobs within this state. C. The micro-business loans may be used for the following: 1. Operation of the micro-business, including creation and retention of jobs. 2. working capital. 3. Acquisition or improvement of real property. 4. Acquisition of machinery and equipment. 5. Refinancing of debt obligations. D. The department shall market and advertise the fund to minority-owned and woman-owned businesses that are unable to access traditional funding sources. E. The community development financial institution may disburse a micro-loan or a regular loan, both of which have a principal amount of less than $25,000. F. A community development financial institution must certify with the department that the loan to a micro-business complies with this section. G. The fund amount used by the community development financial institution may not be more than twenty-five percent of the principal amount of the loan, but the department may set a higher cap by rule. H. A community development financial institution may charge application, commitment and loan guarantee fees as established by the community development financial institution's management. All fees must be waived for micro-loans that are less than $5,000. I. Within six months after the effective date of this section, The department shall evaluate and examine whether there is a need to increase the number of microfinance lenders in this state, and if so, how to increase that number. On or before February 1, 2024, The department shall submit a report of its findings and recommendations to the governor, the president of the senate, the speaker of the house of representatives and provide a copy of the report to the secretary of state. J. For the purposes of this section, "micro-business" means a business that is located in this state, that is independently owned and operated and that employs five or fewer people. END_STATUTE Sec. 2. Appropriation; micro-business loan fund The sum of $10,000,000 is appropriated from the state general fund in fiscal year 2023-2024 to the micro-business loan fund established by section 6-139.01, Arizona Revised Statutes, as added by this act. Sec. 3. Short title Section 6-139.01, Arizona Revised Statutes, as added by this act, may be cited as the "Support Micro-businesses Act". Sec. 4. Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
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82	82	Be it enacted by the Legislature of the State of Arizona:
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84	84	Section 1. Title 6, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 6-139.01, to read:
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86	86	START_STATUTE6-139.01. Micro-business loan fund; lending requirements; report; definition
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88	88	A. The micro-business loan fund is established consisting of legislative appropriations to provide low-interest loans to community development financial institutions that provide loans to micro-businesses in this state. The DEPARTMENT shall administer The fund, and monies in the fund are CONTINUOUSLY appropriated. Subject to available monies, the department shall lend monies to community development financial institutions.
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90	90	B. The community development financial institution must satisfy the following criteria to qualify for a disbursement from the fund:
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92	92	1. The institution must have expertise in micro-business loan applications.
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94	94	2. The institution must have knowledge of micro-business creditworthiness.
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96	96	3. The institution must establish an administrative system to monitor the micro-business loan.
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98	98	4. The institution must have knowledge of WHETHER the micro-business loan will generate economic development and jobs within this state.
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100	100	C. The micro-business loans may be used for the following:
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102	102	1. Operation of the micro-business, including creation and retention of jobs.
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104	104	2. working capital.
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106	106	3. Acquisition or improvement of real property.
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108	108	4. Acquisition of machinery and equipment.
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110	110	5. Refinancing of debt obligations.
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112	112	D. The department shall market and advertise the fund to minority-owned and woman-owned businesses that are unable to access traditional funding sources.
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114	114	E. The community development financial institution may disburse a micro-loan or a regular loan, both of which have a principal amount of less than $25,000.
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116	116	F. A community development financial institution must certify with the department that the loan to a micro-business complies with this section.
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118	118	G. The fund amount used by the community development financial institution may not be more than twenty-five percent of the principal amount of the loan, but the department may set a higher cap by rule.
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120	120	H. A community development financial institution may charge application, commitment and loan guarantee fees as established by the community development financial institution's management. All fees must be waived for micro-loans that are less than $5,000.
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122	122	I. Within six months after the effective date of this section, The department shall evaluate and examine whether there is a need to increase the number of microfinance lenders in this state, and if so, how to increase that number. On or before February 1, 2024, The department shall submit a report of its findings and recommendations to the governor, the president of the senate, the speaker of the house of representatives and provide a copy of the report to the secretary of state.
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124	124	J. For the purposes of this section, "micro-business" means a business that is located in this state, that is independently owned and operated and that employs five or fewer people. END_STATUTE
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126	126	Sec. 2. Appropriation; micro-business loan fund
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128	128	The sum of $10,000,000 is appropriated from the state general fund in fiscal year 2023-2024 to the micro-business loan fund established by section 6-139.01, Arizona Revised Statutes, as added by this act.
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130	130	Sec. 3. Short title
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132	132	Section 6-139.01, Arizona Revised Statutes, as added by this act, may be cited as the "Support Micro-businesses Act".
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134	134	Sec. 4. Emergency
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136	136	This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.