BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 1327 (Cannella) - state government: business information: Internet Web site Amended: As Introduced Policy Vote: GO 12-0 Urgency: No Mandate: No Hearing Date: April 30, 2012 Consultant: Bob Franzoia This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill would require the Governor to establish an Internet Web site to assist a person with the licensing, permitting, and registration requirements necessary to start a business. Fiscal Impact: Up to $75,000 from the General Fund one time to develop digital copies of all state applications, forms and other similar documents available for download. Minor ongoing General Fund and special fund costs to maintain the Web site. Background: Executive Order S-05-10 created the Office of Economic Development in the Governor's Office. AB 29 (J Perez) Chapter 475/2011 created the Governor's Office of Business and Economic Development. Among other things, the office may provide assistance in obtaining state and local permits, assistance in permitting, siting, and other regulatory information pertinent to business operations in the state, and establish a well-advertised telephone number, an interactive Internet Web site, and an administrative structure that effectively supports the facilitation of business development and investment in the state. The office has created CalGOLD (Cal Government On Line to Desktops) as a catalog of information posted on the Internet. CalGOLD does not issue permits or licenses and specific permitting and licensing questions must be directed to the agencies catalogued within CalGOLD. The CalGOLD database provides links and contact information that direct the user to agencies that administer and issue business permits, licenses and registration requirements from all levels of government. SB 1327 (Cannella) Page 1 Much of the information is specific to the type of business and its location in California. The CalGOLD site currently lists 147 business types. As part of a 2012-13 BCP, the office is planning to add approximately 100 more business types and make other improvements to the Web site. The Department of Consumer of Affairs is implementing BreEZe, an online enterprise licensing and enforcement solution intended to improve licensing and enforcement efficiency. With BreEZe, licensees and businesses may apply for or renew a license, pay with a credit card in a secure environment, track the status of an application or licensing request, submit address changes and obtain proof of renewal status. BCP 1110/1111-01 requests additional funding for continued support and to fund credit card processing fees on behalf of users of credit card payments through the BreEZe system. Proposed Law: The Internet Web site shall include information that does the following: (1) Assists individuals with identifying the type of applications, forms, or other similar documents an applicant may need. (2) Provides a digital copy of all state applications, forms, or other similar documents available for download. (3) Instructs individuals on how and where to submit applications, forms, or other similar documents. Related Legislation: AB 2012 (J Pérez) would require, among other things that the Governor's Office of Business and Economic Development establish and maintain an electronic online permit assistance center. (Existing law requires the Secretary for Environmental Protection to establish an electronic online permit assistance center for the purpose of assisting a business or other entity with complying with certain laws and regulations.) Staff Comments: It appears most, if not all, information and instruction this bill requires a Web site to provide is present in CalGOLD. Providing digital copies of all state applications and improving the graphical user interface so a user is taken directly to a permit, and not dropped into a board or department menu, could involve up to six months of IT staffing. Some or all of this work may be undertaken as part of the BCP noted SB 1327 (Cannella) Page 2 above. Recommended Amendments: This bill would permit the imposition of a reasonable fee as a condition of accessing information on the Web site. This provision is unclear. Is the intent to permit a charge for the continued general use of the Web site, which is likely unnecessary, or to permit online payment of an application or permit fee similar to BreEZe? Staff recommends this provision be clarified.