BILL ANALYSIS �
AB 541
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 541 (Morrell) - As Amended: April 25, 2011
Policy Committee: JEDE Vote:4-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill directs the California Small Business Board to focus
for the next two years on, among other items, the impact of
licensing and permitting regulations on small business startups.
The board is required to report its findings and
recommendations to the governor, the Small Business Advocate,
and the Legislature in July 2012, July 2013 and December 2013.
FISCAL EFFECT
Because the California Small Business Board is made up primarily
of private, small business owners, it does 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
1)Purpose. According to the author, over the past 20 years,
regulations have been created in California, often in a
vacuum, without a proper perspective on how they impact and
affect the business environment. This sometimes haphazard
nature of regulation has led to unintended consequences and
California being regularly rated as one of the worst states to
create and do business.
The author notes that small businesses are very important to
the state's economy. Last year, according to the California
Association of Independent Businesses, "California's small
AB 541
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businesses, which average 5.8 employees, comprise 98% of all
businesses in the state, provide 82% of the private sector
jobs and 75% of the gross state product. The author notes
that with small business being such a driving factor in our
economy, impediments must be identified that stand in the way
of small businesses if we hope to turn our economy around he
contends AB 541 will help identify the rules and regulations
preventing small businesses from opening their doors and
keeping their doors open.
2)The California Small Business Board. The 11-member voluntary
board made up of the Business Transportation and Housing
Secretary, two members of the Legislature and seven 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.
3)Related Legislation. AB 2692 (Tran and V. Manuel P�rez) of
2010 was a very similar bill. The bill was held on the
Suspense File by the Assembly Appropriation Committee in May
2010.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081