AB 657

Under current law, public agencies are required to provide assistance to small

businesses to help those small businesses comply with the rules promulgated by

those agencies. Public agencies are required under current law to establish a rule

that creates reduced fines and enforcement mechanisms for minor violations of

agency rules by small businesses. Current law requires public agencies to consider

the appropriateness of a written warning, a reduced fine, or an alternative penalty

if the small business violates a rule, that small business has made a good faith effort

to comply with the rule, and the minor violation does not pose a threat to public

health, safety, or welfare.

In addition, under current law, each public agency is required to promulgate a

rule that discloses in advance the discretion that the agency will follow in the

enforcement of rules against a small business. The rule promulgated shall include

a reduction or waiver of a penalty if the small business voluntarily discloses a rule

violation, and may include consideration of the small business's ability to pay when

determining the penalty. Current law prohibits any discretion in the enforcement

of a rule if certain conditions apply, including if the agency discovers the violation

first, the violation resulted in a substantial economic advantage to the small

business, the small business has repeatedly violated the rule, or the violation may

result in an imminent endangerment to public health or safety.

This bill continues to require public agencies to promulgate a rule that discloses

in advance the discretion that the public agency will follow in the enforcement of

rules against a small business that commits a minor violation of a rule, but limits the

conditions when such discretion is not allowed to minor violations involving a small

business that has repeatedly violated the rule, to minor violations that result in a

substantial economic advantage for the small business, and to minor violations that

may result in an imminent endangerment to public health or safety.

The bill also specifies that the public agency shall consider a number of criteria

for allowing discretion in the enforcement of a rule or assessment of a penalty for a

minor violation, including the following:

1. The difficulty and cost to a small business of complying with a rule.

2. The financial capacity of the small business, including the ability of the small

business to pay the amount of the possible penalty.

3. The compliance options available.

4. The level of public interest and concern.

5. The opportunities available to the small business to understand and comply

with a rule.

6. Fairness to the small business and to others, including competitors and the

public.