BILL NUMBER: AB 2692 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 28, 2010 INTRODUCED BY AssemblyMemberTranMembers Tran and V. Manuel Perez ( Coauthors: Assembly Members Bill Berryhill and Logue ) FEBRUARY 19, 2010An act to add and repeal Chapter 11 (commencing with Section 8850) of Division 1 of Title 2 of the Government Code, relating to state government.An act to add Section 14022.2 to the Corporations Code, relating to small business. LEGISLATIVE COUNSEL'S DIGEST AB 2692, as amended, Tran. California Small BusinessRegulatory Reform Commission.Board. Existing law establishes the California Small Business Board in the Business, Transportation and Housing Agency and specifies its duties, including, but not limited to, advising the Governor, the director, as specified, and the Small Business Advocate regarding issues and programs affecting California's small business community, and to hold public hearings in order to carry out the objectives of the agency. This bill would require the board, until January 1, 2013, as a priority area of focus and deliberation, to review the state's licensing and permitting regulations as they impact small businesses, with special attention to the regulatory impact on small business startups, and would require each state agency to cooperate with the board in that review. The bill would require the board to report a summary of its findings and recommendations to the Governor, the Small Business Advocate, and the Legislature on July 1, 2011, July 1, 2012, and December 31, 2012, as specified.Existing law authorizes various state entities to regulate businesses operating within the state.This bill would, until January 1, 2014, create the Small Business Regulatory Reform Commission, consisting of 7 members appointed by Governor, the Senate Committee on Rules, and the Speaker of the Assembly, and authorize the commission to recommend reforms to state regulations that will encourage the development and expansion of small businesses operating within the state by submitting an annual report to the Governor and Legislature.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. Section 14022.2 is added to the Corporations Code , to read: 14022.2. (a) The Legislature finds and declares that: (1) One purpose of the board is to provide special advice on issues and programs affecting the state's small business community, as specified in subdivision (e). (2) In the current recession, small businesses face especially difficult times. (3) Bankruptcies in the state are reported to have increased by 81 percent compared with the previous 12-month period (September 2008 through August 2009), and is almost double the nationwide increase of 41 percent. (b) In order to assist the state in better supporting small business development, the board shall, as a priority area of focus and deliberation, review the impact of licensing and permitting regulations on small businesses. The board should provide special attention to the impact on small business startups. (c) The board shall undertake its activities pursuant to this section as part of the board's regularly scheduled quarterly meetings and within existing resources. (d) The board shall report a summary of its findings and recommendations to the Governor, the Small Business Advocate, and the Legislature on July 1, 2011, July 1, 2012, and December 31, 2012. The report, including recommendations, shall be in sufficient detail as to guide the Governor and the Legislature to take concrete steps to streamline and mitigate the impacts of the state's current regulations described in subdivision (b), in a manner to better support small businesses without diminishing employee rights and health and safety protections. (e) Each state agency, as defined in Section 11000 of the Government Code, shall cooperate with the board in the board's review of state licensing and permitting regulations and shall respond to all inquiries by the board in a timely manner. The board shall report to the Small Business Advocate any significant challenges the board incurs in obtaining the cooperation and timely responses required by this subdivision. (f) The priority focus of the board on the impact of regulations on small businesses required by this section shall be in effect until January 1, 2013. (g) The reports required by this section shall be made in accordance with Section 9795 of the Government Code.SECTION 1.Chapter 11 (commencing with Section 8850) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER 11. SMALL BUSINESS REGULATORY REFORM COMMISSION 8850. (a) There is in state government the Small Business Regulatory Reform Commission, consisting of seven members, selected as follows and who serve at the pleasure of their appointing authority: (1) Four members appointed by the Governor. (2) Two members appointed by the Senate Committee on Rules. (3) One member appointed by the Speaker of the Assembly. (b) Members of the Small Business Regulatory Reform Commission may receive a per diem for days on which the commission meets and be compensated for reasonable travel expenses to attend those meetings. 8851. (a) The Small Business Regulatory Reform Commission is authorized to recommend reforms to state regulations that will encourage the development and expansion of small businesses operating within the state, including, but not limited to, reforms that will decrease expenses incurred by small businesses that result from state regulations and encourage small businesses to hire employees and buy supplies and materials from within the state. (b) The Small Business Regulatory Reform Commission shall make its recommendations by submitting an annual report to the Governor and Legislature. 8852. This chapter shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.