BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 866


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          866 (Eduardo Garcia) - As Amended April 13, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: This bill expands the duties of the Office of the Small  
          Business Advocate (OSBA), in the Governor's Office of Business  
          and Economic Development (GO-Biz), to include assisting state  
          rulemaking agencies in identifying the aggregate number and size  
          of businesses which may be affected by a new or amended  
          regulation.  Further, this bill requires a state agency that  
          develops a small business compliance guide under the federal  








                                                                     AB 866


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          Small Business Regulatory Fairness Act, to notify the OSBA  
          within 45 days after the guide becomes available to the public.  
          The notice is also required to include information on how a  
          small business or nonprofit organization can obtain a copy of  
          the guide.


          FISCAL EFFECT:


          Ongoing General Fund costs to GO-Biz of approximately $260,000  
          to fund three positions for workload related to the expanded  
          duties of the OSBA. 


          The OSBA does not currently have the staff to formally comment  
          on pending state regulations.  On a case-by-case basis, GO-Biz  
          has engaged on current and proposed regulatory proposals through  
          its Office of Permit Assistance but state statutory direction is  
          currently permissive.   

          COMMENTS:


          1)Background. The Office of Small Business Advocate (OSBA)  
            serves as the primary advocate for California's small business  
            community. The OSBA engages in outreach with small businesses  
            through a variety of methods, including workshops and  
            individual assistance to small business owners. OSBA also  
            manages programs to assist small businesses with capital  
            access and marketing. Additionally, OSBA collaborates with  
            GO-Biz's Permit Assistance Unit to convene an Interagency  
            Working Group that focuses on regulatory updates and small  
            business outreach.

          2)Purpose. This bill seeks to make the regulatory process more  
            accessible to small businesses and requires OSBA to assist  
            state agencies in their rule making process by providing  
            information on the number and size of businesses within the  








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            industry sector that could be impacted by the regulation.   
            Further, OSBA would assist the rulemaking agency in  
            identifying key small business stakeholder groups, which  
            should be included in the public dissemination of information.


          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081