Bonta Bill to Support Innovative Small Businesses Passes Legislature

Thursday, August 28, 2014

AB 2719 Reduces Market Entry Barriers for Emerging Pop-up and Mobile Retail Businesses

(SACRAMENTO, CA) – Assemblymember Rob Bonta (D-Oakland) is proud to announce that his groundbreaking legislation to aid innovative small businesses passed the Legislature with strong bipartisan support and now heads to Governor Brown for his consideration. 

“Small businesses are incredibly important to the economy of our state,” said Assemblymember Bonta.  “There are over 3.3 million small businesses in California, providing 51.6 percent of the total private sector jobs in the state.

Bonta explained, “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. AB 2719 bridges the gap between the new retail environment and outdated laws and regulatory frameworks that do not meet the demands of the new market.”

Pop-up businesses sell non-food products from temporary venues.  These businesses are modeled to "pop up" at one location and eventually move to another. These stores, while small and temporary, can build up interest and sales by consumer exposure. They are often used by marketers for seasonal items such as Halloween costumes and decorations, Christmas gifts and Christmas trees, or fireworks.

Mobile boutique retailers are businesses that sell non-food products from mobile vehicles, typically trucks.  This allows the retailers to bring their products directly to consumers across a potentially wide area.  Mobile fashion boutiques are one of the most common businesses 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 Assemblymember 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.”

“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 Assembly Member 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.”

AB 2719 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.

See AB 2719 for the full text of the bill.