BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 135
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          ASSEMBLY THIRD READING
          AB 135 (Hagman and Valadao)
          As Amended  April 25, 2011
          Majority vote 

           NATURAL RESOURCES   9-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Knight,          |Ayes:|Fuentes, Harkey,          |
          |     |Brownley, Dickinson,      |     |Blumenfield, Bradford,    |
          |     |Grove, Halderman,         |     |Charles Calderon, Campos, |
          |     |Huffman, Monning, Skinner |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Hall, Hill, Lara,         |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires, until 2017, that at least one of the 11 
          members of the Air Resources Board (ARB) be a small business 
          owner.  Specifically,  this bill:
           
          1)Requires that at least one of the 11 members of the ARB be a 
            current owner of a small business.

          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 $10 million or 
            less over the previous three years, or is a manufacturer with 
            100 or fewer employees.

          3)Sunsets the above provisions January 1, 2017.

           EXISTING  LAW  establishes the ARB and provides for an 
          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 








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          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 
          (Nu�ez and Pavley), Chapter 488, Statutes of 2006).

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, negligible cost, if any.

           COMMENTS  :  The ARB has resources for small businesses wanting to 
          participate in its regulatory processes.  ARB publicly announces 
          any new regulations on their Web site 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 Web site.  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 condition in this bill.

          This bill is similar to AB 2328 (Niello), which was approved by 
          the Assembly Natural Resources Committee in 2010 but later 
          failed in the Senate Appropriations Committee.  
           








                                                                 AB 135
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          Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092 


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