CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 912Introduced by Assembly Member Obernolte(Coauthor: Assembly Member Baker)February 16, 2017 An act to add Chapter 3.7 (commencing with Section 11367) to Part 1 of Division 3 of Title 2 of the Government Code, relating to small business. LEGISLATIVE COUNSEL'S DIGESTAB 912, as introduced, Obernolte. Small business: California Small Business Regulatory Fairness Act.Existing law, the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and requires, among other things, that a state agency make available to the public facts, evidence, documents, testimony, or other evidence on which the state agency relies to support the agencys determination that the proposed action will not have a significant adverse impact on business. Existing law establishes the Office of Small Business Advocate, within the Governors Office of Business and Economic Development, and establishes the duties and functions of the Director of the Office of Small Business Advocate including, among other duties, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Existing law requires each state agency that significantly regulates small business or that significantly impacts small business to designate at least one person who is required to serve as a small business liaison.This bill would require a state agency to assist a small business, as defined, in complying with all statutes and regulations administered by the state agency and in any enforcement action by the state agency. The bill would require a state agency to establish a policy, by December 31, 2018, that provides for the reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to, that the violation by the small business did not pose an imminent health, safety, or environmental threat.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the California Small Business Regulatory Fairness Act.SEC. 2. Chapter 3.7 (commencing with Section 11367) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 3.7. California Small Business Regulatory Fairness Act11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 912Introduced by Assembly Member Obernolte(Coauthor: Assembly Member Baker)February 16, 2017 An act to add Chapter 3.7 (commencing with Section 11367) to Part 1 of Division 3 of Title 2 of the Government Code, relating to small business. LEGISLATIVE COUNSEL'S DIGESTAB 912, as introduced, Obernolte. Small business: California Small Business Regulatory Fairness Act.Existing law, the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and requires, among other things, that a state agency make available to the public facts, evidence, documents, testimony, or other evidence on which the state agency relies to support the agencys determination that the proposed action will not have a significant adverse impact on business. Existing law establishes the Office of Small Business Advocate, within the Governors Office of Business and Economic Development, and establishes the duties and functions of the Director of the Office of Small Business Advocate including, among other duties, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Existing law requires each state agency that significantly regulates small business or that significantly impacts small business to designate at least one person who is required to serve as a small business liaison.This bill would require a state agency to assist a small business, as defined, in complying with all statutes and regulations administered by the state agency and in any enforcement action by the state agency. The bill would require a state agency to establish a policy, by December 31, 2018, that provides for the reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to, that the violation by the small business did not pose an imminent health, safety, or environmental threat.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 912
Introduced by Assembly Member Obernolte(Coauthor: Assembly Member Baker)February 16, 2017
Introduced by Assembly Member Obernolte(Coauthor: Assembly Member Baker)
February 16, 2017
An act to add Chapter 3.7 (commencing with Section 11367) to Part 1 of Division 3 of Title 2 of the Government Code, relating to small business.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 912, as introduced, Obernolte. Small business: California Small Business Regulatory Fairness Act.
Existing law, the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and requires, among other things, that a state agency make available to the public facts, evidence, documents, testimony, or other evidence on which the state agency relies to support the agencys determination that the proposed action will not have a significant adverse impact on business. Existing law establishes the Office of Small Business Advocate, within the Governors Office of Business and Economic Development, and establishes the duties and functions of the Director of the Office of Small Business Advocate including, among other duties, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Existing law requires each state agency that significantly regulates small business or that significantly impacts small business to designate at least one person who is required to serve as a small business liaison.This bill would require a state agency to assist a small business, as defined, in complying with all statutes and regulations administered by the state agency and in any enforcement action by the state agency. The bill would require a state agency to establish a policy, by December 31, 2018, that provides for the reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to, that the violation by the small business did not pose an imminent health, safety, or environmental threat.
Existing law, the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and requires, among other things, that a state agency make available to the public facts, evidence, documents, testimony, or other evidence on which the state agency relies to support the agencys determination that the proposed action will not have a significant adverse impact on business. Existing law establishes the Office of Small Business Advocate, within the Governors Office of Business and Economic Development, and establishes the duties and functions of the Director of the Office of Small Business Advocate including, among other duties, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Existing law requires each state agency that significantly regulates small business or that significantly impacts small business to designate at least one person who is required to serve as a small business liaison.
This bill would require a state agency to assist a small business, as defined, in complying with all statutes and regulations administered by the state agency and in any enforcement action by the state agency. The bill would require a state agency to establish a policy, by December 31, 2018, that provides for the reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to, that the violation by the small business did not pose an imminent health, safety, or environmental threat.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the California Small Business Regulatory Fairness Act.SEC. 2. Chapter 3.7 (commencing with Section 11367) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 3.7. California Small Business Regulatory Fairness Act11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the California Small Business Regulatory Fairness Act.
SECTION 1. This act shall be known, and may be cited, as the California Small Business Regulatory Fairness Act.
SECTION 1. This act shall be known, and may be cited, as the California Small Business Regulatory Fairness Act.
### SECTION 1.
SEC. 2. Chapter 3.7 (commencing with Section 11367) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 3.7. California Small Business Regulatory Fairness Act11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
SEC. 2. Chapter 3.7 (commencing with Section 11367) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read:
### SEC. 2.
CHAPTER 3.7. California Small Business Regulatory Fairness Act11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
CHAPTER 3.7. California Small Business Regulatory Fairness Act11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
CHAPTER 3.7. California Small Business Regulatory Fairness Act
CHAPTER 3.7. California Small Business Regulatory Fairness Act
11367. The following terms shall have the following meanings for purposes of this chapter:(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.
11367. The following terms shall have the following meanings for purposes of this chapter:
(a) Small business shall have the same meaning as set forth in Section 14837 of the Government Code.
(b) State agency means any state agency except the Franchise Tax Board or the State Board of Equalization.
11367.1. (a) A state agency shall do all of the following:(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.(2) Assist a small business during an enforcement action by the state agency.(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:(A) The small business has not been subject to previous enforcement actions by the agency.(B) The violation by the small business did not involve willful or criminal conduct.(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.(F) The small business cooperated during any investigation by the state agency.(G) The small business engaged in subsequent action to correct the violation.(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.
11367.1. (a) A state agency shall do all of the following:
(1) Assist a small business in achieving compliance with statutes and regulations administered by the state agency.
(2) Assist a small business during an enforcement action by the state agency.
(3) By December 31, 2018, establish a policy to provide for reduction, and under certain circumstances waiver, of civil penalties for a small business based upon mitigating factors including, but not limited to:
(A) The small business has not been subject to previous enforcement actions by the agency.
(B) The violation by the small business did not involve willful or criminal conduct.
(C) The violation by the small business did not pose an imminent health, safety, or environmental threat.
(D) The small business is unable to pay the penalty or the penalty would impair the ability of the small business to conduct business or compete effectively.
(E) The small business has a low degree of culpability when its conduct is judged in light of its size, length of operation, and the sophistication of its owners or managers.
(F) The small business cooperated during any investigation by the state agency.
(G) The small business engaged in subsequent action to correct the violation.
(b) A small business shall not be required to meet all of the mitigating factors adopted by a state agency to receive relief under the policy. A state agency shall not require the mitigating factors to be weighed equally when granting relief to a small business under the policy.