BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 135
                                                                  Page  1

          Date of Hearing:  April 4, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 135 (Hagman) - As Amended:  March 15, 2011
           
          SUBJECT  :  State Air Resources Board:  membership:  small 
          business owner

           SUMMARY  :  Requires, until 2017, that at least one of the 11 
          members of the Air Resources Board (ARB) be a small business 
          owner who has owned the business for at least 10 years.

           EXISTING  LAW  establishes ARB and provides for appointment of 11 
          members by the Governor on the basis of interest and ability in 
          the field of air pollution control, understanding of the needs 
          of the general public in connection with air pollution problems, 
          and additional specified qualifications.  Members serve at the 
          pleasure of the Governor and are subject to confirmation by the 
          Senate.  Members serve part-time, with the exception of the 
          Chair, who is appointed by the Governor and serves full-time.  
          ARB's primary duties are controlling motor vehicle emissions, 
          coordinating activities of air districts for the purposes of the 
          federal Clean Air Act, and implementing the California Global 
          Warming Solutions Act (AB 32).

           THIS BILL:  

          1)Requires that at least one of the 11 members of the ARB be a 
            current owner of a small business who has owned that small 
            business for at least 10 years.

          2)Defines "small business" by reference as an independently 
            owned and operated business that is not dominant in its field 
            of operation, the principal office of which is located in 
            California, the officers of which are domiciled in California, 
            and which, together with affiliates, has 100 or fewer 
            employees, and average annual gross receipts of ten million 
            dollars ($10,000,000) or less over the previous three years, 
            or is a manufacturer with 100 or fewer employees.

          3)Sunsets the above provisions January 1, 2017.

           FISCAL EFFECT  :  Unknown









                                                                  AB 135
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           COMMENTS  :

          The ARB has resources for small businesses wanting to 
          participate in its regulatory processes.  ARB publicly announces 
          any new regulations on their website and allows for 45 days of 
          public comment, either electronically or via regular mail, 
          before the board meets for a public hearing prior to voting to 
          adopt the policy.  This public comment period is open to any 
          member of the community, including small business owners.  All 
          public comments on pending ARB policies are posted publicly on 
          the ARB website.  In addition, the ARB holds public hearings 
          subsequent to the 45 day comment period for any new pending air 
          quality regulation policy, where any members of the public, 
          including small business owners, may voice concerns and 
          questions before the board member prior to a board vote.  

          ARB is federally mandated to house an Ombudsman Office where 
          small and large businesses, trade associations, and individual 
          community members have a resource for help on any aspect of the 
          ARB regulatory process.  Among its provisions, the Ombudsman's 
          mission to the public includes education on California's air 
          quality management system, guidance on air quality rules and 
          regulations, assisting small businesses in compliance with those 
          regulations, and providing help toward solutions when there is 
          an air quality compliance problem.  ARB is currently required to 
          include an additional impact report specifically concerning 
          small businesses in every new regulation package.  

          According to ARB, at least five of its current board members are 
          business owners in addition to their existing board 
          qualifications.  At least three of those five appear to meet the 
          business size and ownership length conditions in this bill.

          This bill is similar to AB 2328 (Niello), which was approved by 
          this committee in 2010 but later failed in the Senate 
          Appropriations Committee.  However, AB 2328 permitted past small 
          business owners and did not require ownership of the business 
          for at least 10 years.  This bill's requirement that the small 
          business owner member must have owned the same small business 
          for at least 10 years seems to have little bearing on competence 
          as a board member and would limit the pool of eligible 
          candidates, even to the exclusion of legitimate small business 
          owners.   The author and the committee may wish to consider  
          deleting the 10-year condition.









                                                                  AB 135
                                                                  Page  3

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          National Federation of Independent Business (sponsor)
          Brea Chamber of Commerce
          California Moving and Storage Association
          California Small Business Association
          Dale Bright Auto Service
          Greater Corona Valley Chamber of Commerce
          Long Beach Area Chamber of Commerce
          Los Angeles Area Chamber of Commerce
          Redondo Beach Chamber of Commerce
          Regional Chamber of Commerce San Gabriel Valley
          San Francisco Chamber of Commerce
          Specialty Equipment Market Association
          Southwest California Legislative Council
          Windsor Chamber of Commerce

           Opposition 
          
          None on file
           

          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092