California Legislature—2015–16 Regular Session

Assembly Bill No. 866

Introduced by Assembly Member Eduardo Garcia

February 26, 2015

An act to amend Sections 12096.3, 12098.3, and 12098.4 of the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 866, as introduced, Eduardo Garcia. Economic development: small business.

Existing law establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.

This bill would additional authorize GO-Biz to support small businesses by advocating for their interests before state agencies and providing information about accessing technical assistance. The bill would expand the duties of the advocate to include advocating for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regrading small businesses.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

This act shall be known as the Small Business
Regulatory Enforcement Fairness Act of 2015.

SEC. 2.  

(a) The Legislature finds and declares all of the
following:

(1) A vibrant and growing small business sector is critical to
creating jobs in a dynamic economy.

(2) In California, 62 percent of all firms have fewer than five
employees and 98 percent of all firms have fewer than 100
employees and account for 36 percent of all jobs in the state.

(3) While California small businesses create jobs and anchor
the state’s economy, research shows that they bear a
disproportionate share of regulatory costs and burdens.

(4) Changes are needed in the regulatory and enforcement
culture of state agencies in order to help agencies be more
responsive to the implementation challenges of small businesses
without compromising statutory missions of the agencies.

(b) The Legislature further declares that the purpose of this act
is to do all of the following:

(1) Encourage the effective participation of small businesses in
the state regulatory process.

(2) Develop more accessible sources of information on
regulatory reporting requirements for small businesses.

(3) Create a more cooperative regulatory environment among
agencies and small businesses that is less punitive and more
solution oriented.

(4) Make state regulators more accountable for their enforcement
actions by providing small businesses and nonprofits with
meaningful opportunities for redress of excessive enforcement
activities.

SEC. 3.  

Section 12096.3 of the Government Code is amended
to read:

12096.3.  

The office shall serve the Governor as the lead entity
for economic strategy and the marketing of California on issues
relating to business development, private sector investment, and
economic growth. In this capacity, the office may:

(a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing
programs, advance statewide economic goals and respond to
emerging economic problems and opportunities, and ensure that
all state policies and programs conform to the adopted state
economic and business development goals.

(b) Coordinate the development of policies and criteria to ensure
that federal grants administered or directly expended by state
government advance statewide economic goals and objectives.

(c) Market the business and investment opportunities available
in California by working in partnership with local, regional, federal,
and other state public and private institutions to encourage business
development and investment in the state.

(d) Provide, including, but not limited to, all of the following:

(1) Economic and demographic data.

(2) Financial information to help link businesses with state and
local public and private programs.

(3) Workforce information, including, but not limited to, labor
availability, training, and education programs.

(4) Transportation and infrastructure information.

(5) Assistance in obtaining state and local permits.

(6) Information on tax credits and other incentives.

(7) Permitting, siting, and other regulatory information pertinent
to business operations in the state.

(e) Establish a well-advertised telephone number, an interactive
Internet Web site, and an administrative structure that effectively
supports the facilitation of business development and investment
in the state.

(f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.

(g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state’s image
as a destination for business investment and expansion.

(h) Conduct research on the state’s business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.

(i) Support small businesses by begin insert advocating for their interests
before state agencies, end insert providing information about accessing
begin delete capital, end delete begin insert capital and technical assistance and end insert complying with
regulations, and supporting state initiatives that support small
business.

SEC. 4.  

Section 12098.3 of the Government Code is amended
to read:

12098.3.  

(a) The Director of the Office of Small Business
Advocate shall be appointed by, and shall serve at the pleasure of,
the Governor.

(b) The Governor shall appoint the employees who are needed
to accomplish the purposes of this article.

(c) The duties and functions of the advocate shall include all of
the following:

(1) Serve as the principal advocate in the state on behalf of small
businesses, including, but not limited to, advisory participation in
the consideration of all legislation and administrative regulations
that affect small businesses, and advocacy on state policy and
programs related to small businesses on disaster preparedness and
recovery including providing technical assistance.

(2) Represent the views and interests of small businesses before
other state agencies whose policies and activities may affect small
business.

(3) Enlist the cooperation and assistance of public and private
agencies, businesses, and other organizations in disseminating
information about the programs and services provided by state
government that are of benefit to small businesses, and information
on how small businesses can participate in, or make use of, those
programs and services.

(4) Consult with experts and authorities in the fields of small
business investment, venture capital investment, and commercial
banking and other comparable financial institutions involved in
the financing of business, and with individuals with regulatory,
legal, economic, or financial expertise, including members of the
academic community, and individuals who generally represent the
public interest.

(5) Seek the assistance and cooperation of all state agencies and
departments providing services to, or affecting, small business,
including the small business liaison designated pursuant to Section
14846, to ensure coordination of state efforts.

(6) Receive and respond to complaints from small businesses
concerning the actions of state agencies and the operative effects
of state laws and regulations adversely affecting those businesses.

begin insert

(7) Advocate for regulatory implementation models that are
flexible in addressing challenges small businesses face in meeting
regulatory mandates without compromising policy standards.

end insert begin delete

(7)

end delete

begin insert (8) end insert  Counsel small businesses on how to resolve questions and
problems concerning the relationship of small business to state
government.

begin delete

(8)

end delete

begin insert ( end insert begin insert 9) end insert  Maintain, publicize, and distribute an annual list of persons
serving as small business ombudsmen throughout state government.

SEC. 5.  

Section 12098.4 of the Government Code is amended
to read:

12098.4.  

(a) Each agency of the state shall furnish to the
advocate the reports, documents, and information that are public
records and that the director deems necessary to carry out his or
her functions under this chapter.

begin insert

(b) Each agency that develops a small entity compliance guide
to assist small businesses and nonprofit organizations in complying
with regulations in collaboration with a federal agency pursuant
to the federal Small Business Regulatory Fairness Act of 1996
(Public Law 104-121) shall notify the advocate within 45 days
after the guide becomes available to the public. The notice to the
advocate shall include information on how a small business or
nonprofit organization can obtain a copy of the small business
compliance guide.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The advocate shall prepare and submit a written annual report
to the Governor and to the Legislature that describes the activities
and recommendations of the office, including an evaluation of the
efforts of state agencies and, where appropriate, specific
departments, that significantly regulate small businesses to assist
minority and other small business enterprises, and making
recommendations that may be appropriate to assist the development
and strengthening of minority and other small business enterprises.

begin delete

(c)

end delete

begin insert (d) end insert  The advocate may establish a centralized interactive
telephone referral system and Internet Web site to assist small and
minority businesses in their operations, including governmental
requirements, such as taxation, accounting, and pollution control,
and to provide information concerning the agency from which
more specialized assistance may be obtained. The advocate may
establish and advertise a telephone number and an Internet Web
site address to serve this centralized interactive telephone referral
system and Internet Web site.