BILL ANALYSIS �
AB 2719
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CONCURRENCE IN SENATE AMENDMENTS
AB 2719 (Bonta)
As Amended June 17, 2014
Majority vote
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|ASSEMBLY: |67-6 |(May 23, 2014) |SENATE: |30-3 |(August 25, |
| | | | | |2014) |
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Original Committee Reference: L. GOV.
SUMMARY : Requires the Governor's Office of Planning and
Research (OPR) to develop, in consultation with local
governmental entities, a model local ordinance or resolution
regulating mobile retail operations and pop-up operations.
The Senate amendments :
1)Add pop-up operations to the requirements for OPR to develop a
model local ordinance or resolution.
2)Modify provisions to the bill to specify what is required to
be contained in the model ordinance or resolution developed by
OPR, as follows:
a) Requires the model ordinance or resolution to contain
guidelines for prohibiting pop-up businesses that are not
suitable for pop-up operations;
b) Revises the definition of "mobile retail operations" to
include services;
c) Requires the model ordinance or resolution to contain
the types of structures allowed to be used in pop-up
operations; and,
d) Requires the model ordinance or resolution to contain
other provisions relevant to the operation of mobile retail
and pop-up businesses.
EXISTING LAW :
1)Allows, pursuant to the California Constitution, a county or
city to make and enforce all local, police, sanitary and other
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regulations not in conflict with state law (known as police
powers).
2)Allows, pursuant to the California Constitution, charter
cities to make and enforce all ordinances and regulations in
respect to municipal affairs.
3)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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required OPR 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)Required 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)Required 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)Required 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; and,
c) Appropriate timelines for license renewal and procedures
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for license revocation.
5)Defined the following terms:
a) "Mobile retail operations" means the sale of goods that
are not food from a vehicle; and,
b) "Pop-up operations" means the sale of goods and services
that are not food or related to food from a temporary
venue.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill contains 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)
COMMENTS :
1)Purpose of this bill. This bill requires OPR 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
defines the terms "mobile retail operations" and "pop-up
operations." This 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
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
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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 Legislature may wish to consider
the following in relation to this bill:
a) Value of model ordinance. Would cities and counties
find a model ordinance useful? The Legislature may wish to
ask local government associations whether their members
need state guidance with regulating mobile retailers, and
also seek a better understanding of how local governments
are currently regulating mobile retailers at the local
level.
b) One-size-fits-all-approach. This bill does not require
local agencies to adopt the model ordinance developed by
OPR. Local agencies can already adopt regulations that fit
their own unique local needs, so the Legislature may wish
to consider whether a one-size-fits-all approach is helpful
or necessary.
c) Broad definitions. The Legislature may wish to consider
whether the definitions of "mobile retail operations" and
"pop-up operations" should be more narrowly defined. The
bill defines "mobile retail operations" as "the sale of
goods and services that are not food from a vehicle" and
defines "pop-up operations" as "the sale of goods and
services that are not food or related to food from a
temporary venue." With these definitions it is unclear
what sorts of "goods" are being sold and what sorts of
"services" are being provided by these vendors. The
Legislature may wish to give OPR clear direction on the
types of mobile vendors and pop-up vendors that the model
ordinance should apply to.
4)Arguments in support. Supporters argue that this bill
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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.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
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