Amended in Assembly May 28, 2015

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 would additionally authorize GO-Biz to support small businesses by providing information about technical assistance. The bill would expand the duties of the advocate to includebegin delete 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 deletebegin insert sharing with a rulemaking agency the contact information for small business organizations, to the extent that information is available and requested.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 declarations regarding 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.

P3    1(2) Develop more accessible sources of information on
2regulatory reporting requirements for small businesses.

3(3) Create a more cooperative regulatory environment among
4agencies and small businesses that is less punitive and more
5solution oriented.

6(4) Make state regulators more accountable for their enforcement
7actions by providing small businesses and nonprofit organizations
8with meaningful opportunities for redress of excessive enforcement
9activities.

10

SEC. 3.  

Section 12096.3 of the Government Code is amended
11to read:

12

12096.3.  

The office shall serve the Governor as the lead entity
13for economic strategy and the marketing of California on issues
14relating to business development, private sector investment, and
15economic growth. In this capacity, the office may:

16(a) Recommend to the Governor and the Legislature new state
17policies, programs, and actions, or amendments to existing
18programs, advance statewide economic goals and respond to
19emerging economic problems and opportunities, and ensure that
20all state policies and programs conform to the adopted state
21economic and business development goals.

22(b) Coordinate the development of policies and criteria to ensure
23that federal grants administered or directly expended by state
24government advance statewide economic goals and objectives.

25(c) Market the business and investment opportunities available
26in California by working in partnership with local, regional, federal,
27and other state public and private institutions to encourage business
28development and investment in the state.

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

30(1) Economic and demographic data.

31(2) Financial information to help link businesses with state and
32local public and private programs.

33(3) Workforce information, including, but not limited to, labor
34availability, training, and education programs.

35(4) Transportation and infrastructure information.

36(5) Assistance in obtaining state and local permits.

37(6) Information on tax credits and other incentives.

38(7) Permitting, siting, and other regulatory information pertinent
39to business operations in the state.

P4    1(e) Establish a well-advertised telephone number, an interactive
2Internet Web site, and an administrative structure that effectively
3supports the facilitation of business development and investment
4in the state.

5(f) Encourage collaboration among research institutions, startup
6companies, local governments, venture capitalists, and economic
7development agencies to promote innovation.

8(g) In cooperation with the federal government, foster
9relationships with overseas entities to improve the state’s image
10as a destination for business investment and expansion.

11(h) Conduct research on the state’s business climate, including,
12but not limited to, research on how the state can remain on the
13leading edge of innovation and emerging sectors.

14(i) Support small businesses by providing information about
15accessing capital, technical assistance, and complying with
16regulations, and by supporting state initiatives that support small
17business.

18

SEC. 4.  

Section 12098.3 of the Government Code is amended
19to read:

20

12098.3.  

(a) The Director of the Office of Small Business
21Advocate shall be appointed by, and shall serve at the pleasure of,
22the Governor.

23(b) The Governor shall appoint the employees who are needed
24to accomplish the purposes of this article.

25(c) The duties and functions of the advocate shall include all of
26the following:

27(1) Serve as the principal advocate in the state on behalf of small
28businesses, including, but not limited to, advisory participation in
29the consideration of all legislation and administrative regulations
30that affect small businesses, and advocacy on state policy and
31programs related to small businesses on disaster preparedness and
32recovery including providing technical assistance.

33(2) Represent the views and interests of small businesses before
34other state agencies whose policies and activities may affect small
35business.begin insert To the extent information is available and requested,
36share with a rulemaking agency the contact information for small
37business organizations,end insert
begin insert which the rulemaking agency may want
38to include when disseminating public information about a proposed
39new rule or amendment.end insert

P5    1(3) Enlist the cooperation and assistance of public and private
2agencies, businesses, and other organizations in disseminating
3information about the programs and services provided by state
4government that are of benefit to small businesses, and information
5on how small businesses can participate in, or make use of, those
6programs and services.

7(4) Consult with experts and authorities in the fields of small
8business investment, venture capital investment, and commercial
9banking and other comparable financial institutions involved in
10the financing of business, and with individuals with regulatory,
11legal, economic, or financial expertise, including members of the
12academic community, and individuals who generally represent the
13public interest.

14(5) Seek the assistance and cooperation of all state agencies and
15departments providing services to, or affecting, small business,
16including the small business liaison designated pursuant to Section
1714846, to ensure coordination of state efforts.

18(6) Receive and respond to complaints from small businesses
19concerning the actions of state agencies and the operative effects
20of state laws and regulations adversely affecting those businesses.

begin delete

21(7) Provide information to rulemaking agencies on the aggregate
22numbers and size of businesses which may be affected by a
23proposed new or amended regulation, including, to the extent
24information is available, identification of small business
25stakeholder groups which the rulemaking agency may want to
26include when disseminating public information about the proposed
27new rule or amendment.

end delete
begin delete

28(8)

end delete

29begin insert(7)end insert Counsel small businesses on how to resolve questions and
30problems concerning the relationship of small business to state
31government.

begin delete

32(9)

end delete

33begin insert(8)end insert Maintain, publicize, and distribute an annual list of persons
34serving as small business ombudsmen throughout state government.

35

SEC. 5.  

Section 12098.4 of the Government Code is amended
36to read:

37

12098.4.  

(a) Each agency of the state shall furnish to the
38advocate the reports, documents, and information that are public
39records and that the director deems necessary to carry out his or
40her functions under this chapter.

P6    1(b) Each agency that develops a small entity compliance guide
2to assist small businesses and nonprofit organizations in complying
3with regulations in collaboration with a federal agency pursuant
4to the federal Small Business Regulatory Fairness Act of 1996
5(Public Law 104-121) shall notify the advocate within 45 days
6after the guide becomes available to the public. The notice to the
7advocate shall include information on how a small business or
8nonprofit organization can obtain a copy of the small business
9compliance guide.

10(c) The advocate shall prepare and submit a written annual report
11to the Governor and to the Legislature that describes the activities
12 and recommendations of the office, including an evaluation of the
13efforts of state agencies and, where appropriate, specific
14departments, that significantly regulate small businesses to assist
15minority and other small business enterprises, and making
16recommendations that may be appropriate to assist the development
17and strengthening of minority and other small business enterprises.

18(d) The advocate may establish a centralized interactive
19telephone referral system and Internet Web site to assist small and
20minority businesses in their operations, including governmental
21requirements, such as taxation, accounting, and pollution control,
22and to provide information concerning the agency from which
23more specialized assistance may be obtained. The advocate may
24establish and advertise a telephone number and an Internet Web
25site address to serve this centralized interactive telephone referral
26system and Internet Web site.



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