BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 2719 (Bonta) - Model ordinance for mobile retail and pop-up
operations.
Amended: June 17, 2014 Policy Vote: G&F 6-1
Urgency: No Mandate: No
Hearing Date: August 4, 2014
Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2719 would require the Governor's Office of
Planning and Research (OPR) to develop a model local ordinance
or resolution to regulate the licensing and operation of mobile
retail and pop-up operations within a local agency's
jurisdiction.
Fiscal Impact: One-time OPR costs of up to $65,000 in 2015-16 to
conduct research, consult with interested parties and local
agencies, and draft a model ordinance or resolution. (General
Fund)
Background: Existing law establishes OPR within the Governor's
office as the state's comprehensive planning agency. Among the
functions and responsibilities of OPR are to formulate
long-range land use goals and policies, prepare state CEQA
guidelines and serve as the state clearinghouse for review of
local environmental plans, develop and adopt guidelines for city
and county general plans, and to provide general planning
assistance to local governments.
Mobile retail operations and pop-up shops are a relatively new
phenomenon. These short-term retail spaces typically appear
suddenly, either in a vacant storefront or from a vehicle, to
offer goods or services on a temporary basis. While some local
agencies highly regulate mobile and temporary operations, others
have almost no restrictions. Generally, local retail licensing
and land use regulations have been designed to apply to
stationary and longer term retail operations, so they may not be
conducive to fostering growth in this new marketplace.
Proposed Law: AB 2719 would require OPR to consult with local
AB 2719 (Bonta)
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governments to develop a model ordinance or resolution that
could be used by local agencies to regulate mobile retail and
pop-up operations that sell goods and services (excluding food)
from a vehicle or temporary venue. The model ordinance must do
all of the following:
Define parameters for licensing and operation based on
factors such as walkability, proximity to economic hubs,
and other relevant factors.
Identify the types of vehicles and structures that are
suitable for mobile retail and pop-up operations, and
prohibit businesses that are not suitable for this model.
Specify minimum qualifications and licensing
requirements, and timelines for license renewal and
procedures for license revocation.
Contain other provisions relevant to the operation of
these businesses.
Staff Comments: This bill is intended to provide a model for a
more standardized structure for local licensing and regulation
of these small business operations. The bill excludes
businesses that sell food, so the model ordinance would not
apply to the operations of food trucks.
OPR estimates it would incur costs of approximately $65,000 in
2015-16 to conduct research on the issues regarding licensing
and regulating mobile retail and pop-up operations, to consult
with local governmental agencies and other interested parties,
and to draft a model ordinance and resolution. OPR does not
currently have staff with relevant expertise on the topic, so
the costs noted above would likely include a small consulting
contract.