BILL ANALYSIS �
AB 991
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 991 (Olsen) - As Amended: April 13, 2011
Policy Committee: Business and
Professions Vote: 9 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the governor to create the California
Licensing and Permit Center (CLPC) Internet Web site.
Specifically, this bill:
1)Requires the governor to create the CLPC tol assist the
public, free of charge, with licensing, permitting, and
registration requirements of state agencies.
2)Requires the governor to establish a help center to provide
both e-mail and phone assistance to applicants with licensing,
permitting, and registration requirements.
3)Requires all affected state agencies to cooperate with this
program by providing accurate and updated information about
their licensing requirements.
FISCAL EFFECT
1)One time GF costs in excess of $750,000 to create the CLPC
website and to gather all of the required information.
On-going costs in the range of $500,000 per year to maintain
and update the website, to advertise the required phone
number, and to provide staff to answer the dedicated telephone
line and assist callers.
2)The administration is currently beginning work on a new,
automated licensing system for the Department of Consumer
Affairs (DCA). Over the life of the project, the BreEZe
system could cost up to $50 million (various DCA licensing
funds).
AB 991
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COMMENTS
1)Purpose . The author contends that California's various
licensing and permitting requirements make it difficult for
new businesses to establish themselves in California. She
contends creating a single database with information on all of
California's business permits and licenses will make it easier
for businesses to navigate the requirements.
2)CalGOLD . The Employment Development Department (EDD) currently
maintains the CalGOLD website which is a catalog of searchable
information on various permits and licensing requirements
throughout the state.
3)Committee Question . There are multiple bills this session, as
there were last session, which require various entities to
create websites or other automated systems to streamline the
business licensing process. In addition, the administration
is currently working on creating the BreEze system within the
Department of Consumer Affairs. The committee may wish to
consider whether it is prudent in this fiscal environment to
spend state resources on multiple business licensing systems.
In addition, it is unclear how this system would differ from
the existing CalGOLD system, which is maintained by EDD.
4)Related Legislation . In the current session, AB 569 (B.
Berryhill) creates the Business Master License Center (BMLC)
within the State and Consumer Services Agency. This system is
intended to act as a one-stop system for all business licenses
within the state. That bill is currently pending before this
committee.
Also, in the current session, AB 29 (John A. Perez) is a
reintroduction of AB 2734 from last year. That bill is
currently awaiting hearing in the Jobs Committee.
AB 2734 (John A. Perez) in 2010 would have codified the
Governor's Office of Economic Development (GOED) and
establishes its powers and duties. The bill also created the
California Business Investment Services Program (CalBIS) and
required that it have a well-advertised phone number,
interactive Internet Web site and an administrative structure
effective enough to support business development. That bill
AB 991
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was vetoed. In his veto message, Governor Schwarzenegger
noted that he was disappointed in the State Senate for
insisting that the director of GOED be confirmed by the
Legislature and therefore could not sign the bill.
In 2008, AB 2854 (Mendoza) required, upon available funding,
the Office of the Small Business Advocate to create a one-stop
web site for small business-related announcements and funding
opportunities offered by state agencies. That bill was vetoed
by the governor. In his veto message he noted, that "this
bill does not offer any additional significant information to
these businesses that is not already provided on the existing
Small Business Advocate website." In addition, he stated, "The
report mandate in this bill would create additional workload
that would result in a General Fund cost pressure that is
unsustainable during our current budget situation."
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081