Amended in Assembly April 13, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 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 amended, 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 wouldbegin delete additionalend deletebegin insert additionallyend insert authorize GO-Biz to support small businesses bybegin delete advocating for their interests before state agencies andend delete providing information aboutbegin delete accessingend delete technical assistance. The bill would expand the duties of the advocate to includebegin delete advocating for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards.end deletebegin insert providing information to rulemaking agencies regarding the number and size of businesses which may be affected by a proposed new or amended regulation, as specified.end insert 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 declarationsbegin delete regradingend deletebegin insert regardingend insert 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:

P2    1

SECTION 1.  

This act shall be known as the Small Business
2Regulatory Enforcement Fairness Act of 2015.

3

SEC. 2.  

(a) The Legislature finds and declares all of the
4following:

5(1) A vibrant and growing small business sector is critical to
6creating jobs in a dynamic economy.

7(2) In California, 62 percent of all firms have fewer than five
8employees and 98 percent of all firms have fewer than 100
9employees and account for 36 percent of all jobs in the state.

10(3) While California small businesses create jobs and anchor
11the state’s economy, research shows that they bear a
12disproportionate share of regulatory costs and burdens.

13(4) Changes are needed in the regulatory and enforcement
14culture of state agencies in order to help agencies be more
15responsive to the implementation challenges of small businesses
16without compromising statutory missions of the agencies.

17(b) The Legislature further declares that the purpose of this act
18is to do all of the following:

19(1) Encourage the effective participation of small businesses in
20the state regulatory process.

21(2) Develop more accessible sources of information on
22regulatory reporting requirements for small businesses.

P3    1(3) Create a more cooperative regulatory environment among
2agencies and small businesses that is less punitive and more
3solution oriented.

4(4) Make state regulators more accountable for their enforcement
5actions by providing small businesses andbegin delete nonprofitsend deletebegin insert nonprofit
6organizationsend insert
with meaningful opportunities for redress of
7excessive enforcement activities.

8

SEC. 3.  

Section 12096.3 of the Government Code is amended
9to read:

10

12096.3.  

The office shall serve the Governor as the lead entity
11for economic strategy and the marketing of California on issues
12relating to business development, private sector investment, and
13economic growth. In this capacity, the office may:

14(a) Recommend to the Governor and the Legislature new state
15policies, programs, and actions, or amendments to existing
16programs, advance statewide economic goals and respond to
17emerging economic problems and opportunities, and ensure that
18all state policies and programs conform to the adopted state
19economic and business development goals.

20(b) Coordinate the development of policies and criteria to ensure
21that federal grants administered or directly expended by state
22government advance statewide economic goals and objectives.

23(c) Market the business and investment opportunities available
24in California by working in partnership with local, regional, federal,
25and other state public and private institutions to encourage business
26development and investment in the state.

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

28(1) Economic and demographic data.

29(2) Financial information to help link businesses with state and
30local public and private programs.

31(3) Workforce information, including, but not limited to, labor
32availability, training, and education programs.

33(4) Transportation and infrastructure information.

34(5) Assistance in obtaining state and local permits.

35(6) Information on tax credits and other incentives.

36(7) Permitting, siting, and other regulatory information pertinent
37to business operations in the state.

38(e) Establish a well-advertised telephone number, an interactive
39Internet Web site, and an administrative structure that effectively
P4    1supports the facilitation of business development and investment
2in the state.

3(f) Encourage collaboration among research institutions, startup
4companies, local governments, venture capitalists, and economic
5development agencies to promote innovation.

6(g) In cooperation with the federal government, foster
7relationships with overseas entities to improve the state’s image
8as a destination for business investment and expansion.

9(h) Conduct research on the state’s business climate, including,
10but not limited to, research on how the state can remain on the
11leading edge of innovation and emerging sectors.

12(i) Support small businesses bybegin delete advocating for their interests
13before state agencies,end delete
providing information about accessingbegin delete capital
14andend delete
begin insert capital,end insert technicalbegin delete assistanceend deletebegin insert assistance,end insert and complying with
15regulations, andbegin insert byend insert supporting state initiatives that support small
16business.

17

SEC. 4.  

Section 12098.3 of the Government Code is amended
18to read:

19

12098.3.  

(a) The Director of the Office of Small Business
20Advocate shall be appointed by, and shall serve at the pleasure of,
21the Governor.

22(b) The Governor shall appoint the employees who are needed
23to accomplish the purposes of this article.

24(c) The duties and functions of the advocate shall include all of
25the following:

26(1) Serve as the principal advocate in the state on behalf of small
27businesses, including, but not limited to, advisory participation in
28the consideration of all legislation and administrative regulations
29that affect small businesses, and advocacy on state policy and
30programs related to small businesses on disaster preparedness and
31recovery including providing technical assistance.

32(2) Represent the views and interests of small businesses before
33other state agencies whose policies and activities may affect small
34business.

35(3) Enlist the cooperation and assistance of public and private
36agencies, businesses, and other organizations in disseminating
37information about the programs and services provided by state
38government that are of benefit to small businesses, and information
39on how small businesses can participate in, or make use of, those
40programs and services.

P5    1(4) Consult with experts and authorities in the fields of small
2business investment, venture capital investment, and commercial
3banking and other comparable financial institutions involved in
4the financing of business, and with individuals with regulatory,
5legal, economic, or financial expertise, including members of the
6academic community, and individuals who generally represent the
7public interest.

8(5) Seek the assistance and cooperation of all state agencies and
9departments providing services to, or affecting, small business,
10including the small business liaison designated pursuant to Section
1114846, to ensure coordination of state efforts.

12(6) Receive and respond to complaints from small businesses
13concerning the actions of state agencies and the operative effects
14of state laws and regulations adversely affecting those businesses.

begin delete

15(7) Advocate for regulatory implementation models that are
16flexible in addressing challenges small businesses face in meeting
17regulatory mandates without compromising policy standards.

end delete
begin insert

18(7) Provide information to rulemaking agencies on the aggregate
19numbers and size of businesses which may be affected by a
20proposed new or amended regulation, including, to the extent
21information is available, identification of small business
22stakeholder groups which the rulemaking agency may want to
23include when disseminating public information about the proposed
24new rule or amendment.

end insert

25(8) Counsel small businesses on how to resolve questions and
26problems concerning the relationship of small business to state
27government.

28(9) Maintain, publicize, and distribute an annual list of persons
29serving as small business ombudsmen throughout state government.

30

SEC. 5.  

Section 12098.4 of the Government Code is amended
31to read:

32

12098.4.  

(a) Each agency of the state shall furnish to the
33advocate the reports, documents, and information that are public
34records and that the director deems necessary to carry out his or
35her functions under this chapter.

36(b) Each agency that develops a small entity compliance guide
37to assist small businesses and nonprofit organizations in complying
38with regulations in collaboration with a federal agency pursuant
39to the federal Small Business Regulatory Fairness Act of 1996
40(Public Law 104-121) shall notify the advocate within 45 days
P6    1after the guide becomes available to the public. The notice to the
2advocate shall include information on how a small business or
3nonprofit organization can obtain a copy of the small business
4compliance guide.

5(c) The advocate shall prepare and submit a written annual report
6to the Governor and to the Legislature that describes the activities
7and recommendations of the office, including an evaluation of the
8efforts of state agencies and, where appropriate, specific
9departments, that significantly regulate small businesses to assist
10minority and other small business enterprises, and making
11recommendations that may be appropriate to assist the development
12and strengthening of minority and other small business enterprises.

13(d) The advocate may establish a centralized interactive
14telephone referral system and Internet Web site to assist small and
15minority businesses in their operations, including governmental
16requirements, such as taxation, accounting, and pollution control,
17and to provide information concerning the agency from which
18more specialized assistance may be obtained. The advocate may
19establish and advertise a telephone number and an Internet Web
20site address to serve this centralized interactive telephone referral
21system and Internet Web site.



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