BILL ANALYSIS Ó
AB 393
Page 1
Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 393 (Cooley) - As Amended: March 21, 2013
SUBJECT : Office of Business and Economic Development: Internet
Web site
SUMMARY : Requires the Director of the Governor's Office of
Business and Economic Development (GO-Biz) to ensure that the
office's Internet Web site contains information on the fee
requirements and fee schedules of state agencies. Specifically,
this bill :
1)Requires a state agency that the Governor determines has
licensing authority to provide accurate updated information
about its fee schedule, as follows:
a) Assists individuals with identifying the types of fees
and their due dates.
b) Provides direct links to the fee requirements and fee
schedules for all state agencies. If a direct link cannot
be provided, the information shall be posted and made
easily accessible on the office's Internet Web site.
c) Instructs individuals on how and where to submit
payments.
EXISTING LAW
1)Establishes the 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)Requires the Director of the GO-Biz to ensure that the
office's Internet Web site contains information to assist an
individual with the licensing, permitting, and registration
requirements necessary to start a business.
3)Requires a state agency that the Governor determines has
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licensing authority to provide accurate updated information
about its licensing requirements, as provided.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill : According to the Author, small business is
a cornerstone of California's economy. There are approximately
3.5 million small businesses in California, accounting for over
99% of the state's employers and roughly 50% of California's
private sector employment. That said, during the recent
economic downturn, California lost more than 20,000 small
businesses in 2009. Additionally, Forbes recently placed
California 41st in their 2012 "Best States for Business"
ranking.
Small businesses are responsible for paying a variety of fees to
numerous state agencies throughout the year, depending on the
nature of their business. Monitoring the various fee
requirements and fee schedules is an additional burden to small
businesses, which already have limited capital and time, and can
lead to unpaid fees, late charges, and mismanagement of their
finances.
AB 393 will help California small businesses plan their yearly
operations by making the fee requirements and fee schedules of
state agencies readily available online via the GO-Biz Internet
Web site.
Governor's Office of Business and Economic Development : GO-Biz
was created by Governor Edmund G. Brown Jr. in 2011 to serve as
California's single point of contact for economic development
and job creation efforts. The 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.
Arguments in support : According to the California Small
Business Association, providing small business with an online
location where they are provided with information on the fee
requirements and fee schedules will help small businesses ensure
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they pay state fees and avoid penalties. By providing small
businesses with an efficient method to research and pay their
state fees, they are able to focus on increasing revenue and
providing more jobs to Californians.
The California Taxpayers Association states that California is
considered by businesses to be among the most heavily regulated
states in the nation. Businesses are subjected to countless
state and local permitting and licensing requirements, yet much
of these requirements are widely segregated among the numerous
agencies - making it difficult for new businesses to obtain the
required approvals. The state attempted to consolidate this
information on the GO-Biz website by identifying links to the
various regulatory agencies. However, the website does not
provide a direct link to the agency's fee requirements or
schedules, nor does it identify the agency to whom the fees are
to be remitted. This renders the website less useful, because
individuals must still navigate through another agency's website
in order to determine the appropriate fee and remittance
information.
AB 393 would increase compliance with regulatory requirements,
simplify the compliance burden on businesses, and reduce the
administrative workload for state agencies. This measure is a
win-win for taxpayers and the state.
Prior legislation : SB 1327 (Canella), Chapter 763, Statutes of
2012. The bill required the Governor to create a one-stop-shop
Internet Web site to provide individuals with essential
information for establishing a business in California.
AB 29 (J. Perez), Chapter 475, Statutes of 2011. The measure
created, within the Governor's office, the Governor's Office of
Business and Economic Development.
AB 978 (V. Manuel Pérez), 2009-10 Legislative Session. The bill
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 would 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. The bill
designated the Business, Transportation and Housing Agency as
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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 :
Support
Association Builders and Contractors of California
California Business Roundtable
California Chamber of Commerce
California League of Food Processors
California Manufacturers and Technology Association
California Restaurant Association
California Small Business Association (Sponsor)
California Taxpayers Association
Carmichael Chamber of Commerce
Citrus Heights Regional Chamber of Commerce
Golden State Builders Exchanges
Natural Federation of Independent Business
Rancho Cordova Chamber of Commerce
Small Business California
United Contractors
Opposition
None on file
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531