BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2330|
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THIRD READING
Bill No: AB 2330
Author: Arambula (D)
Amended: 5/1/06 in Assembly
Vote: 27
SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 3-1, 6/26/06
AYES: Figueroa, Florez, Simitian
NOES: Aanestad
NO VOTE RECORDED: Morrow
SENATE APPROPRIATIONS COMMITTEE : 11-2, 8/7/06
AYES: Murray, Alarcon, Alquist, Battin, Dutton, Escutia,
Florez, Ortiz, Poochigian, Romero, Torlakson
NOES: Aanestad, Ashburn
ASSEMBLY FLOOR : 80-0, 5/30/06 - See last page for vote
SUBJECT : Small businesses: Office of the Small Business
Advocate
SOURCE : California Chamber of Commerce
California Small Business Association
Office of the State Controller
DIGEST : This bill requires the Office of the Small
Business Advocate to have a study prepared by October 1,
2007, regarding the cost impact of state regulations on
small businesses.
ANALYSIS :
CONTINUED
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Existing law:
1.Creates the Office of the Small Business Advocate (OSBA)
under the Governor's Office of Planning and Research.
2.Requires the OSBA to report to the Governor and the
Legislature every two years on the efforts of the state
to assist minority and other small businesses, and makes
recommendations on how to strengthen them.
3.Establishes the Office of Administrative Law as the
entity with purview over the state's regulatory process,
including assessing the impact of proposed regulations on
small businesses and consideration of reasonable
alternatives that would lessen identified adverse
impacts.
This bill:
1.Requires the OSBA to commission a study on the effect and
cost impact of state regulations on California small
businesses, due no later than October 1, 2007, parallel
to the scope of a similar study by the federal Small
Business Administration (SBA) Office of Advocacy.
2.Requires the study to examine successful models from
other states, identify regulatory costs, and develop
potential alternative approaches to meeting the same
regulatory objectives with fewer burdens to small
businesses.
3.Requires the study to make recommendations on how
California's regulatory process can assess a regulation's
impact, including the cumulative impact on small business
and methods for developing appropriate policy
alternatives.
4.Requires that the report must avoid making
recommendations that could diminish wage and hour, social
insurance, or health and safety protections for
California workers.
5.Requires OSBA to convene a small business advisory
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committee to provide advice on the development of the
report.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2006-07 2007-08
2008-09 Fund
Study $85
General
SUPPORT : (Verified 8/10/06)
California Chamber of Commerce (co-source)
California Small Business Association (co-source)
Office of the State Controller (co-source)
Automotive Aftermarket Services, Inc.
California Association for Local Economic Development
California Independent Oil Marketers Association
California Manufacturers and Technology Association
California Metals Coalition
California Spa and Pool Industry Education Council
Fresno Area Chamber of Commerce
Greater Riverside Chambers of Commerce
Lumber Association of California and Nevada
National Federation of Independent Business
Palm Desert Chamber of Commerce
Simi Valley Chamber of Commerce
Small Business Action Committee
Small Business California
State Farm Insurance Companies
Thousand Oaks/Westlake Village Regional Chamber of Commerce
Tulare Chamber of Commerce
United Chambers of Commerce of the San Fernando Valley
ARGUMENTS IN SUPPORT : According to the author's office,
regulatory burdens and costs continue to be a major concern
for small businesses. Research shows that small businesses
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continue to bear a disproportionate share of the federal
regulatory burden.
The cost of California regulations for small businesses is
unknown. Although state agencies are required to consider
the effects of adopted regulations on the California
economy, in general, and on small business specifically,
state agencies are not required to consider the cumulative
cost impact of regulations. The author's office argues
that those costs must be analyzed in order to fully measure
the impact of regulations on small businesses. This would
help policymakers reduce or design more cost-effective
regulatory approaches that achieve desired policy
objectives while placing the least burden on the regulated
industry.
Supporters of this bill contend that by the very nature of
their size, the operation of small businesses requires that
owners "wear several hats," handling numerous compliance
issues not directly related to the productive purpose of
their businesses. Time away from actual production of
goods or services equates to lost time and money.
Supporters also note the importance of the advisory
committee required in this bill. Input from businesses
that are financially impacted by regulations will be
critical in designing the study. Additionally, large
manufacturers are concerned that their smaller suppliers
are not disproportionately burdened by regulatory
requirements and costs that limit their ability to remain
profitable in the state.
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Baca, Bass, Benoit, Berg,
Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan,
Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre,
DeVore, Dymally, Emmerson, Evans, Frommer, Garcia,
Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley
Horton, Houston, Huff, Jones, Karnette, Keene, Klehs,
Koretz, La Malfa, La Suer, Laird, Leno, Leslie, Levine,
Lieber, Lieu, Liu, Matthews, Maze, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nation, Nava, Negrete
McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman,
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Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas,
Spitzer, Strickland, Torrico, Tran, Umberg, Vargas,
Villines, Walters, Wolk, Wyland, Yee, Nunez
JJA:do 8/10/06 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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