BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 135|
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                                 THIRD READING


          Bill No:  AB 135
          Author:   Hagman (R) and Valadao (R)
          Amended:  8/15/11 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  4-3, 06/27/11
          AYES:  Simitian, Strickland, Blakeslee, Lowenthal
          NOES:  Hancock, Kehoe, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  5-4, 08/22/11
          AYES:  Walters, Alquist, Emmerson, Lieu, Runner
          NOES:  Kehoe, Pavley, Price, Steinberg

           ASSEMBLY FLOOR  :  71-0, 05/12/11 - See last page for vote


           SUBJECT  :    Air Resources Board:  small business ownership:
                        membership

           SOURCE  :     California Small Business Association


           DIGEST  :     This bill:  (1) requires that at least one of 
          the 11 members of the Air Resources Board (ARB) be an owner 
          within five years 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 
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          manufacturer with 100 or fewer employees, and (3) sunsets 
          January 1, 2017.  This bill is double-jointed with AB 146 
          (Dickinson).

           ANALYSIS  :    Current law provides primary responsibility 
          for control of air pollution, other than from vehicular 
          sources, to local air districts.  These districts include 
          county Air Pollution Control Districts (APCDs), unified 
          APCDs (two or more contiguous counties that are part of 
          county districts are merged), and regional APCDs (two or 
          more counties become part of a regional district), and sets 
          requirements for governing board membership that generally 
          includes members who are mayors or city council members, or 
          both, and members who are county supervisors.  The number 
          of members and composition must be determined jointly by 
          the county (or counties) and cities within a district, with 
          certain exceptions.

          Control of vehicular sources is generally the 
          responsibility of the ARB.  The ARB is the state agency 
          charged with coordinating efforts to attain and maintain 
          ambient air quality standards, to conduct research in air 
          pollution issues, "and to systematically attack the serious 
          problem caused by motor vehicles, which is the major source 
          of air pollution in many areas of the state."  The ARB also 
          has responsibilities for implementing the California Global 
          Warming Solutions Act of 2006.  The ARB consists of 11 
          members, and 6 of those members must have certain 
          qualifications (e.g., automotive engineering; chemistry, 
          meteorology, or related field; surgeon or an authority on 
          health effects).  The other five members must be board 
          members from the following entities:  South Coast Air 
          Quality Management District (AQMD), Bay Area AQMD, San 
          Joaquin Valley Unified AQMD, San Diego County APCD, and a 
          board member from any other district.  These board members 
          must reflect the "qualitative requirements" of the other 
          six members to the extent practicable.

           Related Legislation
           
          AB 146 (Dickinson) adds one additional member to the ARB 
          with training and experience in climate change and 
          reduction of greenhouse gas emissions, and another 
          additional member from a district within the Sacramento 

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          federal nonattainment area for ozone in any of the bill's 
          specified districts.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/23/11)

          California Small Business Association (source) 
          Automotive Service Councils of California
          Brea Chamber of Commerce
          California Asian Pacific Chamber of Commerce
          California Bus Association
          California Dump Truck Owners Association
          California Moving and Storage Association
          Chino Valley Chamber of Commerce
          City of Industry Chamber of Commerce
          Dale Bright's Auto Service
          Downey Chamber of Commerce
          Fullerton Chamber of Commerce
          Greater Corona Valley Chamber of Commerce
          Greater Fresno Area Chamber of Commerce Government Affairs 
          Council
          Industry Manufacturers Council
          Long Beach Area Chamber of Commerce
          Los Angeles Area Chamber of Commerce
          National Federation of Independent Business
          North Orange County Legislative Alliance
          Redondo Beach Chamber of Commerce & Visitors Association
          Regional Chamber of Commerce San Gabriel Valley
          San Francisco Chamber of Commerce
          South Bay Association of Chambers of Commerce
          Southwest California Legislative Council
          Specialty Equipment Market Association
          Windsor Chamber of Commerce

           OPPOSITION  :    (Verified  8/23/11)

          Air Resources Board
          Department of Finance
          Sierra Club California

           ARGUMENTS IN SUPPORT  :    According to the author, "Small 
          businesses are heavily impacted by regulations implemented 

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          by �ARB].  They don't possess the time or money that large 
          corporations focus on studying, understanding, and 
          complying with �ARB] codes."  The author believes that "AB 
          135 would fix the problem by representing the voice of 
          small businesses.  The member can serve as the liaison to 
          the small business community, ensuring the businesses' 
          concerns are heard by �ARB] while also encouraging 
          compliance of �ARB's] regulation for small business 
          owners."

          According to the National Federation of Independent 
          Business (NFIB) in supporting AB 135, "California small 
          businesses compose approximately 98 percent of all 
          businesses in the state.  They employ over 50 percent of 
          private sector employees and are responsible for three 
          quarters of all new jobs created.  The impact of small 
          business on California's economic success is nothing short 
          of critical.  AB 135 recognizes this concern and 
          strengthens the voice of small business by designating that 
          one of eleven board members be a small business owner."

           ARGUMENTS IN OPPOSITION  :    According to Sierra Club 
          California in opposing AB 135, "To set aside a seat 
          specifically for small business owners would unnecessarily 
          restrict the Governor's ability to pick the best person for 
          the job.  Earmarking a seat for a particular interest would 
          also invite other interests to seek their own designated 
          slots.  For example, if small business owners deserve their 
          own specified seat, then how about the employees who work 
          for those businesses?  What about the community groups 
          whose members are affected by ARB decisions?  Rather than 
          starting down this slippery slope, the Legislature should 
          avoid reserving seats for particular interests."


           ASSEMBLY FLOOR  :  71-0, 05/12/11
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Huffman, Jeffries, Jones, Knight, Lara, Logue, 

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            Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. 
            Manuel P�rez, Silva, Skinner, Smyth, Solorio, Swanson, 
            Valadao, Wagner, Wieckowski, Williams, John A. P�rez
          NO VOTE RECORDED:  Alejo, Cedillo, Garrick, Gorell, Hueso, 
            Monning, Portantino, Torres, Yamada


          DLW:nl  8/24/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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