SB 1228 Summary

• Establishes the California Small Business Regulatory Fairness Act requiring state agencies to assist small businesses in complying with statutes, regulations, and enforcement actions.

• Requires state agencies to create a policy by December 31, 2017 that provides for reduction and potential waiver of civil penalties for small businesses based on mitigating factors including prior enforcement history, lack of willful conduct, and cooperation during investigations.

• Specifies mitigating factors agencies must consider when reducing penalties, including whether the violation posed an imminent health, safety, or environmental threat and whether the small business engaged in corrective action.

• Exempts the Franchise Tax Board and State Board of Equalization from these requirements.