BILL ANALYSIS Ó SB 1327 Page 1 SENATE THIRD READING SB 1327 (Cannella) As Amended August 21, 2012 Majority vote SENATE VOTE :39-0 GOVERNMENTAL ORGANIZATION 15-0 APPROPRIATIONS 16-0 ----------------------------------------------------------------- |Ayes:|Hall, Nestande, Atkins, |Ayes:|Gatto, Harkey, | | |Block, Chesbro, Cook, | |Blumenfield, Bradford, | | |Galgiani, Garrick, Gatto, | |Charles Calderon, Campos, | | |Hill, Jeffries, Ma, | |Davis, Fuentes, Hall, | | |Perea, Silva, Bradford | |Hill, Cedillo, Mitchell, | | | | |Nielsen, Norby, Solorio, | | | | |Wagner | ----------------------------------------------------------------- SUMMARY : Requires the Director of the Governor's Office of Business and Economic Development to ensure that the office's Internet Web site contain information to assist an individual with all the necessary information on how to start a business in the State of California, 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. SB 1327 Page 2 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. 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 : According to the Assembly Appropriations Committee, costs associated with this legislation should be minor and absorbable within existing resources. COMMENTS : SB 1327 Page 3 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 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. Related legislation : AB 991 (Olsen) of the current 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) of the current legislative session, re-establishes the Office of Permit Assistance under the SB 1327 Page 4 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) of the current 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 on the Senate Floor) Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531 FN: 0005270