BILL ANALYSIS �
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 2719 HEARING: 6/25/14
AUTHOR: Bonta FISCAL: Yes
VERSION: 6/17/14 TAX LEVY: No
CONSULTANT: Ewing
MOBILE RETAIL OPERATIONS: MODEL ORDINANCE
Directs the Governor's Office of Planning and Research to
develop a model local ordinance on mobile and pop-up retail
operations.
Background and Existing Law
The Governor's Office of Planning and Research (OPR) was
established in 1970 to serve the Governor and his cabinet
on issues of long-range planning and research (AB 2070,
Assembly Select Committee on Environmental Quality, Chapter
1534). Among other duties, OPR researches growth and
development, manages state planning grants and coordinates
federal grants, and is the comprehensive state planning
agency for California.
Local agencies have authority over land use decisions and
the regulation of retail establishments, under their
general police powers. State law can limit local land use
regulation. For instance, the state limits local agencies'
authority to permit housing construction in a flood zone
unless certain safety standards are met.
To address issues of statewide concern, the state
periodically has issued model ordinances. The state has
adopted model ordinance language for landscape
conservation, to reduce water consumption (AB 325, Clute,
Chapter 1145, 1990), for the diversion of construction and
demolition wastes from landfills, to improve reuse and
recycling of construction materials (SB 1374, Kuehl,
Chapter 501, 2002), and on other topics as well.
Recent trends in mobile retail, including the sale of
non-food items from vehicles, and short-term retail venues
- lasting from just a few hours to a few months, and often
referred to as "Pop-Up" retail - have run into conflict
AB 2719 (Bonta) -- 6/17/14 -- Page 2
with local licensing and land use regulations, which
generally were crafted to apply to stationary and longer
term retail venues.
Some business owners want the state to provide guidance to
local agencies to improve the relevance and consistency of
local regulatory ordinances and licensing requirements for
mobile and pop-up retail enterprises as emerging sectors of
the economy.
Proposed Law
AB 2719 directs the Governor's Office of Planning and
Research, in consultation with local agencies, to establish
a model local ordinance regulating mobile retail
operations, with guidelines for the regulation of temporary
or pop-up retail operations. AB 2719 does not apply to
retail food sales.
The model ordinance must:
Define parameters for licensing of mobile retail
operations based on factors such as walkability,
proximity to economic hubs, and other relevant
factors.
Contain guidelines for licensing mobile retail and
pop-up operations and prohibit operations that are not
suitable for mobile or pop-up retail.
Designate the types of vehicles or structures
allowed to be used for these retail operations.
Establish minimum qualifications and licensing
requirements for businesses to operate as mobile or
pop-up vendors.
Establish appropriate timelines for license renewal
and procedures for license revocation.
Identify other factors relevant to the operations
of these businesses.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . Mobile retail and pop-up
AB 2719 (Bonta) -- 6/17/14 -- Page 3
entrepreneurs represent a growing segment of California's
economy. These businesses, typically operated as small
businesses, can face a tangle of licensing and regulatory
barriers that impede their success and the economic growth
they can bring to California. Local agencies are beginning
to recognize the value of these emerging business
strategies, but few local agencies have amended their
regulatory and licensing requirements around the unique
nature of these businesses. AB 2719 will support greater
consistency across local agencies and improved recognition
of how these businesses operate through the drafting of a
model ordinance. AB 2719 directs the Governor's Office of
Planning and Research, in consultation with local agencies,
to draft an appropriate model ordinance for statewide
dissemination.
2. Right tool for the job ? The state has promulgated model
ordinances in the past, typically as a strategy to promote
a statewide goal, such as reduced water consumption during
times of drought. When the state has issued model
ordinances, it has drawn upon the expertise of a state
agency familiar with the goal to be addressed. Mobile and
pop-up enterprises are recent entrants in to the
marketplace. It is not clear that the Governor's Office
of Planning and Research has the experience and expertise
with mobile and pop-up retail to craft a model ordinance,
or that such an ordinance would have statewide
implications. The Committee may wish to consider whether
the mobile and pop-up retail industry should work directly
with local agencies to craft a model ordinance.
Assembly Actions
Assembly Local Government Committee9-0
Assembly Appropriations Committee 15-2
Assembly Floor 67-6
Support and Opposition (6/19/14)
Support : City and County of San Francisco; PopupHood;
Fashion Law Group; West Coast Mobile Retail Association.
Opposition : Unknown.
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