BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 135

                                                                  Page 1


          GOVERNOR'S VETO
          AB 135 (Hagman and Valadao)
          As Amended  August 15, 2011
          2/3 vote
           
           
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          |ASSEMBLY:  |71-0 |(May 12, 2011)  |SENATE: |24-7 |(August 30,    |
          |           |     |                |        |     |2011)          |
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          |ASSEMBLY:  |72-2 |(September 2,   |        |     |               |
          |           |     |2011)           |        |     |               |
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          Original Committee Reference:   NAT. RES.
           
           SUMMARY  :  Requires, until 2017, that at least one of the 11 
          members of the Air Resources Board (ARB) be a small business 
          owner.  
           
           The Senate amendments  adding chaptering out amendments, 
          incorporating the provisions of AB 146 (Dickinson), which 
          increases the membership of the ARB from 11 to 13 and requires 
          the additional members to be:  1) a board member from specified 
          air districts in the Sacramento federal nonattainment area; and, 
          2) an expert in climate change.  

           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 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 135

                                                                  Page 2


           
          AS PASSED BY THE ASSEMBLY  , this bill:

          1)Required that at least one of the 11 members of the ARB be a 
            current owner of a small business.

          2)Defined "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)Repealed the above provisions on January 1, 2017.
           
          FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, minor and absorbable costs.

           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 










                                                                  AB 135

                                                                  Page 3


          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.
           
          GOVERNOR'S VETO MESSAGE  :

              This bill requires that one member of the governing 
              board of the California Air Resources Board (CARB) be 
              an owner of a small business, as defined, within the 
              past five years.

              I agree that persons with business experience should be 
              on the Air Board.  In fact, four sitting members have 
              such experience.

              But, whether the Air Board should have one member, as 
              provided in this bill, or four, is best left to the 
              discretion of the Governor.

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

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