BILL ANALYSIS
AB 2692
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Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2692 (Tran and V. Manuel Perez) - As Amended: April 28,
2010
Policy Committee: Jobs, Econ.
Development & the Economy Vote: 6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill finds and declares that the California Small Business
Board (CSBB) focus on the impact of state regulations on small
businesses. Specifically, this bill finds and declares:
1)The board shall focus on the impact of licensing and
permitting regulations on small businesses.
2)The board shall report a summary of its findings and
recommendations to the governor, Small Business Advocate, and
the Legislature on July 1, 2011, July 1, 2012, and December
31, 2012.
3)The report shall include sufficient detail for the governor
and the Legislature to take concrete steps to streamline and
mitigate the impacts of the state's current regulations in
order to better support small businesses.
4)Sunsets the provisions of the bill on January 1, 2013.
FISCAL EFFECT
Because the CSBB is made up primarily of private, small business
owners they do not have the capacity or the staffing necessary
to undertake a significant study of the state's small business
regulatory process or produce the required report. Hiring a
private consultant or the required staff to undertake the
project would likely cost between $300,000 and $500,000 GF.
COMMENTS
AB 2692
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1)Purpose . The intent of this legislation is to require the
Small Business Board to undertake a study of whether or not
state licensing and permitting is a significant barrier for
small businesses either currently operating in California or
wanting to operate in California.
2)The California Small Business Board . The 10-member voluntary
board made up of the Business Transportation and Housing
Secretary, two members of the Legislature and seven private,
small business owners was created to advise the governor, the
director of the Small Business Loan Guarantee Program, and the
state's Small Business Advocate regarding issues and programs
affecting California's small business community. This
includes, but is not limited to, issues concerning business
innovation and expansion, export financing, state procurement
and management, venture capital, and financial assistance. As
noted above, there is no state staff dedicated to the board.
3)Related Legislation . In 2008, AB 2416 (Fuentes) would have
expanded the role of the California Small Business Board
(CSBB) to require them to examine and advise on new
"innovative" financial products. That bill was held on this
committee's Suspense File.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081