BILL ANALYSIS Ó AB 393 Page 1 ASSEMBLY THIRD READING AB 393 (Cooley) As Amended May 24, 2013 Majority vote GOVERNMENTAL ORGANIZATION 17-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Hall, Nestande, Bigelow, |Ayes:|Gatto, Harkey, Bigelow, | | |Chesbro, Cooley, Gray, | |Bocanegra, Bradford, Ian | | |Hagman, | |Calderon, Campos, | | |Roger Hernández, Jones, | |Donnelly, Eggman, Gomez, | | |Jones-Sawyer, Levine, | |Hall, Ammiano, Linder, | | |Medina, Perea, | |Pan, Quirk, Wagner, Weber | | |V. Manuel Pérez, Salas, | | | | |Torres, Waldron | | | | | | | | ----------------------------------------------------------------- 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 has licensing, permitting, or registration authority to provide direct links to information about its fee schedule to GO-Biz, 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, where available for download. c) Instructs individuals on how and where to submit payments. d) Makes legislative findings. e) Makes technical and clarifying changes. 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 AB 393 Page 2 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 licensing authority to provide accurate updated information about its licensing requirements, as provided. FISCAL EFFECT : According to the Assembly Appropriations Committee, costs should be minor and absorbable within existing GO-Biz resources. 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. This bill 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 AB 393 Page 3 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 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 Web site by identifying links to the various regulatory agencies. However, the Web site 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 Web site less useful, because individuals must still navigate through another agency's Web site in order to determine the appropriate fee and remittance information. This bill 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. Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531 FN: 0000914