BILL ANALYSIS Ó
SB 1327
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Date of Hearing: June 28, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 1327 (Cannella) - As Introduced: February 23, 2012
SENATE VOTE : 39-0
SUBJECT : State government: business information: Internet Web
site
SUMMARY : Requires the Governor to establish an Internet Web
site to provide an individual with all of the necessary
information on how to start a business in the State of
California. Specifically, this bill :
1)Requires that the Internet Web site contain information on the
licensing, permitting, and registration requirements of state
agencies, and shall include, but not be limited to,
information that does all of the following:
a) Assist individuals with identifying the type of
applications, forms, or other similar documents and
applicant may need.
b) Provides a digital copy of all state applications,
forms, or other similar documents available for download.
c) Instructs individuals on how and where to submit
applications, forms, or other similar documents.
2)Requires the Governor to ensure that the Internet Web site is
user friendly and provides accurate, updated information.
3)Requires a state agency to provide accurate updated
information about its licensing requirements.
4)Prohibits a state agency from using the Internet Web site
established by this bill as the exclusive source of licensing
information for the public to access licensing requirements
for that agency.
5)Authorizes the Governor to impose a reasonable fee upon users
of the Internet Web site.
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EXISTING LAW
1)Establishes the Office of Business Development (GO-Biz) within
the Governor's Office, under the control of a director who is
appointed by the Governor, for the purpose of serving as the
lead entity for economic strategy and marketing of California
on issues relating to business development, private sector
investment and economic growth.
2)Provides for the California Economic Strategy Panel within the
Labor and Workforce Development Agency to provide
recommendations regarding an economic development strategic
plan and charges the panel with the new responsibility of
addressing the development of a system of accountability for
use in the annual state budget process.
3)Provides that the California Small Business Financial
Development Corporations Law, creates the Office of the
California Small Business Board and imposes numerous duties on
the Secretary of Business, Transportation and Housing.
4)Creates the Office of Small Business Advocate within the
Office of Planning and Research, and imposes various duties
and requires the Governor to appoint the director of the
Office of Small Business Advocate.
5)Provides for the California Business Investment Services
program, which is currently operated by the Labor and
Workforce Development Agency.
FISCAL EFFECT : Unknown
COMMENTS :
Author's statement : According to the author, "SB 1327 seeks to
create a one-stop-shop internet website for individuals to use
as a tool in obtaining the necessary permits and licenses to
start a business. This measure is designed to help individuals
navigate, California's complex regulatory system by streamlining
the application process." In addition, the author claims that
"while CalGOLD is a useful resource, there is more that can be
done to expedite and streamline the application process."
Governor's Office of Business and Economic Development : GO-Biz
was created by Governor Edmund G. Brown Jr. to serve as
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California's single point of contact for economic development
and job creation efforts. GO-Biz offers a range of services to
business owners including: attraction, retention and expansion
services, site election, permit streamlining, clearing of
regulatory hurdles, small business assistance, international
trade development, assistance with state government, and much
more.
Cal Government On Line to Desktops : GO-Biz created Cal
Government On Line to Desktops (CalGOLD) 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. 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 business continuity plan, the office is planning to
add approximately 100 more business types and make other
improvements to the Web site.
Arguments in Support : Supporters of the bill argue that this
bill is critical in enhancing California's business climate by
making it less complicated for entrepreneurs to relocate or
start a business in our state. They claim that anything that can
be done to streamline the process will be beneficial to the
State of California.
Arguments in Opposition : The California Board of Accountancy
(CBA) states that, "the CBA already maintains its own website
that provides all of its licensing information to the people of
California. It has made great strides in directing individuals
seeking information on Certified Public Accountant (CPA)
licensing to the website, and we believe additional locations
for this information could result in confusion."
Author Amendments : the author will present the following
amendments in committee:
1)On page 2, lines 12-13: add a clause providing that the
website may also provide hyperlinks to the documents that are
hosted elsewhere.
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2)On page 2, line 25, following "reasonable fee": insert "not to
exceed the actual costs of providing this service"
3)Add Assemblymember Solorio as a Co-Author.
Related Legislation : AB 991 (Olsen), 2011-12 Legislative
Session. Requires the Governor to create the California
Licensing and Permit Center Internet Web site to assist the
public, free of charge, with licensing, permitting, and
registration requirements of state agencies. (Held in Assembly
Appropriations Committee)
AB 1549 (Gatto), 2011-12 Legislative Session. Re-establishes
the Office of Permit Assistance under the Governor's Office of
Planning and Research to help facilitate state and local review
of commercial and industrial development projects. (Held in
Assembly Appropriations Committee)
AB 2641 (Skinner), 2011-12 Legislative Session. Requires GO-Biz
to post on its Internet Web site information to assist a person
in starting a nonprofit corporation and to assist nonprofit
corporations to achieve compliance with the state's statutory
and regulatory requirements. (Pending in Senate Business,
Professions and Economic Development Committee)
Prior Legislation : AB 29 (J. Perez), Chapter 475, Statutes of
2011. Created, within the Governor's office, the Governor's
Office of Business and Economic Development.
AB 978 (V. Manuel Pérez), 2009-10 Legislative Session. Would
have required the State Chief Information Officer to collaborate
with the Department of Consumer Affairs to acquire a new,
integrated, enterprise-wide enforcement and licensing system, as
described, that will replace the current licensing and
monitoring system being used by the department. (Held in Senate
Appropriations Committee)
AB 1721 (Arambula), Chapter 631, Statutes of 2007. Designated
the Business, Transportation and Housing Agency as lead agency
on economic development activities, and established a fund for
receiving federal, state, local, and private economic
development moneys that can be used to further state economic
development activities.
REGISTERED SUPPORT / OPPOSITION :
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Support
National Federation of Independent Business
Silicon Valley Leadership Group
Opposition
California Board of Accountancy
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531