BILL ANALYSIS �
AB 2719
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GOVERNOR'S VETO
AB 2719 (Bonta)
As Amended June 17, 2014
2/3 vote
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|ASSEMBLY: |67-6 |(May 23, 2014) |SENATE: |30-3 |(August 25, |
| | | | | |2014) |
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|ASSEMBLY: |69-9 |(August 27, | | | |
| | |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
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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
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.
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
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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
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."
GOVERNOR'S VETO MESSAGE :
"I am not persuaded that requiring the Office of Planning and
Research to develop a model local ordinance to regulate mobile
retail operations is a wise use of state resources. This is a
matter well within the competence of local officials."
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
FN: 0005612
AB 2719
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