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Calif. Assemblyman Bonta Authors AB 2719 to Support Innovative Small Businesses

Filipino-American Assemblymember Rob Bonta’s innovative small business bill passed the leigslature with “strong bipartisan support” and now awaits the approval of Governor Jerry Brown.

Bonta believes in the incredible importance of small businesses in the economy of California that led to the creation of AB 2719.

“There are over 3.3 million small businesses in California, providing 51.6 percent of the total private sector jobs in the state.” Bonta said.

“AB 2719 supports small businesses by standardizing the regulatory process for pop-up and mobile boutique retailers across the state through creation of a model local ordinance for adoption by local jurisdictions,” he added.

He envisions his bill as a bridge to the “gap between the new retail environment and outdated law and regulatory frameworks that do not meet the demands of the new market.”

Pop-up businesses sell non-food products from temporary venues. These new outlet of businesses are modeled to “pop-up” at one location and eventually move to other locations. Though small and temporary, it can build up interest and sales by consumer exposure. It is often used by marketers for seasonal items such as Halloween costumes and decorations, Christmas gifts and trees, or fireworks.

On the other hand, mobile boutique retailers are businesses that sell non-food products from mobile vehicles, typically trucks. It allows the retailers to bring their products directly to a consumer across a potentially wide area. Fashion boutiques are one of the most common busiest to retail in this way.

“Mobile boutique retailers and pop-ups are both confronted with similar regulatory challenges because there is no standard process for regulating mobile boutique and pop-up retail operations in local jurisdictions,” said Bonta.

“A mobile business attempting to operate in different local jurisdictions must bear the expense and difficulty of modifying their operation to comply with regulations in each new location.” he warned.

“AB 2719 standardizes the process across the state by providing a model local ordinance that will provide regulatory guidelines for items including: licensing, revocation, timelines, vehicle specifications, and other necessary provisions,” said Bonta. “This bill 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 based on walkability, proximity to economic hubs, and other relevant factors.”

The bill is sponsored by Popuphood, an Oakland based advocacy group for pop-up businesses, and the West Coast Mobile Retail Association, a Los Angeles based advocacy group for mobile retail businesses.