BILL NUMBER: AB 866	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eduardo Garcia

                        FEBRUARY 26, 2015

   An act to amend Sections 12096.3, 12098.3, and 12098.4 of the
Government Code, relating to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 866, as introduced, Eduardo Garcia. Economic development: small
business.
   Existing law establishes the Governor's Office of Business and
Economic Development, also known as GO-Biz, to 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. Existing law authorizes GO-Biz to,
among other things, support small businesses by providing information
about accessing capital. Existing law establishes the Office of
Small Business Advocate, within GO-Biz. Existing law establishes the
duties and functions of the Director of the Office of Small Business
Advocate, also known as the advocate. Those duties include, among
other things, representing the views and interests of small
businesses before other state agencies whose policies and activities
may affect small businesses. Under existing law, each agency of the
state is required to furnish to the advocate reports, documents, and
information that are public records and that the advocate deems
necessary to carry out his or her functions.
   This bill would additional authorize GO-Biz to support small
businesses by advocating for their interests before state agencies
and providing information about accessing technical assistance. The
bill would expand the duties of the advocate to include advocating
for regulatory implementation models that are flexible in addressing
challenges small businesses face in meeting regulatory mandates
without compromising policy standards. The bill would additionally
require each agency that develops a small entity compliance guide, as
specified, to notify the advocate within 45 days after the guide
becomes available to the public, and to include in that notice
information on how a small business can obtain a copy of the small
business compliance guide. The bill would also make various findings
and declarations regrading small businesses.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  This act shall be known as the Small Business
Regulatory Enforcement Fairness Act of 2015.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) A vibrant and growing small business sector is critical to
creating jobs in a dynamic economy.
   (2) In California, 62 percent of all firms have fewer than five
employees and 98 percent of all firms have fewer than 100 employees
and account for 36 percent of all jobs in the state.
   (3) While California small businesses create jobs and anchor the
state's economy, research shows that they bear a disproportionate
share of regulatory costs and burdens.
   (4) Changes are needed in the regulatory and enforcement culture
of state agencies in order to help agencies be more responsive to the
implementation challenges of small businesses without compromising
statutory missions of the agencies.
   (b) The Legislature further declares that the purpose of this act
is to do all of the following:
   (1) Encourage the effective participation of small businesses in
the state regulatory process.
   (2) Develop more accessible sources of information on regulatory
reporting requirements for small businesses.
   (3) Create a more cooperative regulatory environment among
agencies and small businesses that is less punitive and more solution
oriented.
   (4) Make state regulators more accountable for their enforcement
actions by providing small businesses and nonprofits with meaningful
opportunities for redress of excessive enforcement activities.
  SEC. 3.  Section 12096.3 of the Government Code is amended to read:

   12096.3.  The office shall 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. In this capacity, the office may:
   (a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing programs,
advance statewide economic goals and respond to emerging economic
problems and opportunities, and ensure that all state policies and
programs conform to the adopted state economic and business
development goals.
   (b) Coordinate the development of policies and criteria to ensure
that federal grants administered or directly expended by state
government advance statewide economic goals and objectives.
   (c) Market the business and investment opportunities available in
California by working in partnership with local, regional, federal,
and other state public and private institutions to encourage business
development and investment in the state.
   (d) Provide, including, but not limited to, all of the following:
   (1) Economic and demographic data.
   (2) Financial information to help link businesses with state and
local public and private programs.
   (3) Workforce information, including, but not limited to, labor
availability, training, and education programs.
   (4) Transportation and infrastructure information.
   (5) Assistance in obtaining state and local permits.
   (6) Information on tax credits and other incentives.
   (7) Permitting, siting, and other regulatory information pertinent
to business operations in the state.
   (e) Establish a well-advertised telephone number, an interactive
Internet Web site, and an administrative structure that effectively
supports the facilitation of business development and investment in
the state.
   (f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.
   (g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state's image as
a destination for business investment and expansion.
   (h) Conduct research on the state's business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.
   (i) Support small businesses by  advocating for their
interests before state agencies,  providing information about
accessing  capital,   capital and technical
assistance and  complying with regulations, and supporting state
initiatives that support small business.
  SEC. 4.  Section 12098.3 of the Government Code is amended to read:

   12098.3.  (a) The Director of the Office of Small Business
Advocate shall be appointed by, and shall serve at the pleasure of,
the Governor.
   (b) The Governor shall appoint the employees who are needed to
accomplish the purposes of this article.
   (c) The duties and functions of the advocate shall include all of
the following:
   (1) Serve as the principal advocate in the state on behalf of
small businesses, including, but not limited to, advisory
participation in the consideration of all legislation and
administrative regulations that affect small businesses, and advocacy
on state policy and programs related to small businesses on disaster
preparedness and recovery including providing technical assistance.
   (2) Represent the views and interests of small businesses before
other state agencies whose policies and activities may affect small
business.
   (3) Enlist the cooperation and assistance of public and private
agencies, businesses, and other organizations in disseminating
information about the programs and services provided by state
government that are of benefit to small businesses, and information
on how small businesses can participate in, or make use of, those
programs and services.
   (4) Consult with experts and authorities in the fields of small
business investment, venture capital investment, and commercial
banking and other comparable financial institutions involved in the
financing of business, and with individuals with regulatory, legal,
economic, or financial expertise, including members of the academic
community, and individuals who generally represent the public
interest.
   (5) Seek the assistance and cooperation of all state agencies and
departments providing services to, or affecting, small business,
including the small business liaison designated pursuant to Section
14846, to ensure coordination of state efforts.
   (6) Receive and respond to complaints from small businesses
concerning the actions of state agencies and the operative effects of
state laws and regulations adversely affecting those businesses.

   (7) Advocate for regulatory implementation models that are
flexible in addressing challenges small businesses face in meeting
regulatory mandates without compromising policy standards. 

   (7) 
    (8)  Counsel small businesses on how to resolve
questions and problems concerning the relationship of small business
to state government. 
   (8) 
    (   9)  Maintain, publicize, and distribute an
annual list of persons serving as small business ombudsmen throughout
state government.
  SEC. 5.  Section 12098.4 of the Government Code is amended to read:

   12098.4.  (a) Each agency of the state shall furnish to the
advocate the reports, documents, and information that are public
records and that the director deems necessary to carry out his or her
functions under this chapter. 
   (b) Each agency that develops a small entity compliance guide to
assist small businesses and nonprofit organizations in complying with
regulations in collaboration with a federal agency pursuant to the
federal Small Business Regulatory Fairness Act of 1996 (Public Law
104-121) shall notify the advocate within 45 days after the guide
becomes available to the public. The notice to the advocate shall
include information on how a small business or nonprofit organization
can obtain a copy of the small business compliance guide. 

   (b) 
    (c)  The advocate shall prepare and submit a written
annual report to the Governor and to the Legislature that describes
the activities and recommendations of the office, including an
evaluation of the efforts of state agencies and, where appropriate,
specific departments, that significantly regulate small businesses to
assist minority and other small business enterprises, and making
recommendations that may be appropriate to assist the development and
strengthening of minority and other small business enterprises.

   (c) 
    (d)  The advocate may establish a centralized
interactive telephone referral system and Internet Web site to assist
small and minority businesses in their operations, including
governmental requirements, such as taxation, accounting, and
pollution control, and to provide information concerning the agency
from which more specialized assistance may be obtained. The advocate
may establish and advertise a telephone number and an Internet Web
site address to serve this centralized interactive telephone referral
system and Internet Web site.