BILL ANALYSIS �
AB 2719
Page 1
Date of Hearing: April 23, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 2719 (Bonta) - As Amended: March 28, 2014
SUBJECT : Governor's Office of Business and Economic
Development: Standard Pop-Up Regulation Zones Act: model local
ordinance or resolution.
SUMMARY : Requires the Governor's Office of Business and
Economic Development (GO-Biz) to develop, in consultation with
local governmental entities, a model local ordinance or
resolution regulating mobile retail operations. Specifically,
this bill :
1)Requires GO-Biz to develop, in consultation with local
governmental entities, a model local ordinance or resolution
regulating mobile retail operations within the jurisdiction of
a city, county, or city and county, for adoption by a city,
county, or city and county.
2)Requires the model local ordinance to define the parameters of
licensing a mobile retail operation based on factors such as
walkability, proximity to economic hubs, and price for retail
space.
3)Requires the model local ordinance or resolution to contain
guidelines for licensing mobile and pop-up retail operations
and to prohibit mobile retail businesses that are not suitable
for mobile operations.
4)Requires the model local ordinance or resolution to contain
all of the following:
a) The types of vehicles or containers allowed to operate
as mobile retailers, include a weight limitation;
b) The minimum qualifications and licensing requirements
for businesses to operate as mobile vendors and service
providers;
c) Appropriate timelines for license renewal and procedures
for license revocation; and,
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d) A requirement that the city, county, or city and county
conduct and publish a study on the impact of the local
ordinance or resolution a year after the ordinance or
resolution was adopted.
EXISTING LAW :
1)Establishes GO-Biz to, among other duties, serve the Governor
as the lead entity for economic strategy and the marketing of
California on issues relating to business development, private
sector investment, and economic growth.
2)Allows, pursuant to the California Constitution, a county or
city to make and enforce all local, police, sanitary and other
regulations not in conflict with state law (known as police
powers).
3)Allows, pursuant to the California Constitution, charter
cities to make and enforce all ordinances and regulations in
respect to municipal affairs.
4)Allows for the imposition of business license taxes (either as
general taxes or special taxes) imposed on persons or entities
for the privilege of conducting business within a city or
county.
FISCAL EFFECT : This bill is keyed fiscal.
COMMENTS :
1)Purpose of this bill . This bill requires GO-Biz to develop a
model ordinance, in consultation with local governments, to
regulate mobile retail operations and pop-up retail
operations. The bill also prescribes the factors that should
be required in a model local ordinance or resolution, and a
requirement that the city or county must publish a study on
the impact of the local ordinance or resolution one year after
adoption.
The bill is author-sponsored.
2)Author's statement . According to the author, "A pop-up shop
is a short-term retail space that appears seemingly out of
nowhere, quickly drawing in customers, and then disappears
when the optimal selling season is over. Arts and crafts
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businesses can briefly set up shop in a vacant storefront in a
mall or other type of shopping center. Many large retailers
incorporate pop-ups in their main retail space to briefly
promote trendy events.
"Temporary stores or pop-ups run up against regulatory
challenges. There is no standard process for licensing mobile
and pop-up retail operations. Some local districts highly
regulate these operations through strict rule enforcement
while others exercise very little regulatory authority over
these businesses. The lack of a standardized process deters
small business development because owners bear the expense and
difficulty of modifying their operation to suit each new
location. Owners are discouraged by a hugely bureaucratic
structure that ill suits the realities of operating a limited
or temporary retail business.
"This bill standardizes the process across the state by
drafting a model local ordinance that will provide regulatory
guidelines for items including: licensing, revocation,
timelines, vehicle specifications, and a validation study to
be conducted one year after the ordinance is adopted. These
measures provide a flexible template necessary to operate
safe, clean, thriving small businesses in an ever-changing
business environment."
3)Policy considerations . The Committee may wish to consider the
following in relation to the bill:
a) The author mentions that some "local districts highly
regulate these operations through strict rule enforcement
while others exercise very little regulatory authority" -
what local government entities is the author referencing?
b) Would cities and counties find a model ordinance useful?
The Committee may wish to ask local government
associations whether their members need state help with
regulating these entities.
c) What does the term "mobile retail operations" mean and
what entities does it include? Does it include food
trucks? The author may wish to add a definition into the
bill.
d) Is GO-Biz the appropriate entity to develop a model
ordinance for locals, or is the Governor's Office of
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Planning and Research (OPR) the more appropriate entity to
suggest a model ordinance and work with local governments
on its contents?
e) This bill does not require local agencies to adopt the
model ordinance. Local agencies can already adopt
regulations that fit their own unique local needs, so the
Committee may wish to consider whether a one-size-fits-all
approach is helpful or necessary. Also, how would the
model ordinance affect those entities that may already have
an ordinance in place?
f) What is the value of the study? The bill requires the
model ordinance to require that the local agency publish a
study one year after adopting the model ordinance, but the
provisions of the bill do not detail what should be
included in the study, or how it should be published.
Should it be posted on the local agency's website?
4)Arguments in support . Supporters argue that this bill
standardizes the regulatory process for pop-up and mobile
boutique retail operations across the state by providing a
model local ordinance for adoption by local jurisdictions.
5)Arguments in opposition . None on file.
REGISTERED SUPPORT / OPPOSITION :
Support
PopupHood
The Fashion Law Group
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958