Senate BillNo. 606


Introduced by Senator Nielsen

February 27, 2015


An act to add Chapter 5.2 (commencing with Section 11530) to Part 1 of Division 3 of Title 2 of the Government Code, relating to state government.

LEGISLATIVE COUNSEL’S DIGEST

SB 606, as introduced, Nielsen. Small Business Appeals Board.

Existing law sets forth procedures generally for the administrative review of the regulatory activities of state agencies.

This bill would establish the Small Business Appeals Board in state government composed of 5 board members, as specified. The bill would authorize the board, at its discretion, to grant a hearing and review the order, ruling, action, or failure to act of any state agency, except a state taxing agency, upon the petition of any small business affected by the order, ruling, action, or failure to act. The bill would authorize the board to grant any remedy and impose any penalty authorized under existing law governing administrative procedures. The bill would authorize any other administrative body with jurisdiction over the matter to take the board’s disposition into account in making its own determination on the matter. The bill would make findings and declarations in support of these provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Chapter 5.2 (commencing with Section 11530)
2is added to Part 1 of Division 3 of Title 2 of the Government Code,
3to read:

4 

5Chapter  5.2. Small Business Appeals Board
6

 

7

11530.  

The Legislature finds and declares all of the following:

8(a) Small businesses are the backbone of the California economy
9and are essential to the state’s prospective vitality.

10(b) An often complicated and sometimes arbitrary state
11regulatory system has impeded the growth of some enterprises and
12has caused a perception that California is a hard place to do
13business. Often, small businesses are overwhelmed with red tape
14and agencies that stress formalities over substance.

15

11530.5.  

To allow California’s small businesses to have a
16forum for appeal of what may appear to be a slow or overzealous
17bureaucracy, the Small Business Appeals Board is hereby
18established in state government.

19

11530.10.  

For purposes of this chapter, “small business” means
20an entity that meets either of the following criteria:

21(a) Its gross receipts are less than ten million dollars
22($10,000,000) annually.

23(b) It has fewer than 100 employees.

24

11530.15.  

(a) The Small Business Appeals Board shall be
25composed of five members, as follows:

26(1) An individual appointed by the Governor, who shall serve
27as chair.

28(2) A retired judge appointed by the Chief Justice of the
29California Supreme Court.

30(3) A representative of the office of the Attorney General.

31(4) Two public members with extensive experience in the
32operation of small businesses, one to be appointed by the President
33pro Tempore of the Senate and one to be appointed by the Speaker
34of the Assembly.

35(b) Board members shall not receive compensation, but board
36members not serving in their official capacity may receive per
37diem and actual expenses.

P3    1(c) The board shall meet at least once per month and shall
2commence operations beginning the January after the appointment
3of all board members and the appropriation of funds for its support.
4The board may employ legal and administrative staff for the
5purposes of this chapter.

6

11530.20.  

(a) Except as provided in subdivision (c), the board
7may, at its discretion, grant a hearing and review the order, ruling,
8action, or failure to act of any state agency, upon the petition of
9any small business affected by the order, ruling, action, or failure
10to act. The board may grant any remedy and impose any penalty
11authorized under existing law governing administrative procedures.
12Any other administrative body with jurisdiction over the matter
13may take the board’s disposition into account in making its own
14determination on the matter.

15(b) A small business may petition the board pursuant to this
16chapter regardless of whether it has exhausted its other
17administrative remedies. A decision of the board to grant or deny
18a hearing under this chapter shall not be subject to administrative
19review.

20(c) This chapter shall not apply to any taxing agency of the state.



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