published on June 25, 2020 - 1:17 PM
Written by The Business Journal Staff

Sen. Andreas Borgeas’ Senate Bill 1457, the Small Business Protection Bill, passed out of that house on Thursday.

The bill would allow state agencies to provide financial relief for small businesses by operating with more discretion when enforcing monetary penalties. The bill requires a state agency to establish a policy that will provide for the reduction or waiver of civil penalties for violations of regulatory or statutory requirements by a small business under appropriate circumstances by Jan. 1, 2022.

In the bill’s context, “state agency” means any state agency, department, board or commission that has significant rulemaking authority over small business, except for the Franchise Tax Board, the California Department of Tax and Fee Administration and the State Board of Equalization.

“I am proud this important piece of legislation was passed by my colleagues today,” Borgeas said in a statement on Thursday. “Small business and employees throughout our state are struggling to recover from the pandemic-induced recession. California must do everything in its power to help them recover — including the waiver and reduction of civil penalties if they are trying to make a correction in good faith.”

The bill has received widespread support from several chambers of commerce and chamber coalitions.

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