BILL ANALYSIS Ó
AB 507
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
507 (Olsen) - As Amended March 26, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of Consumer Affairs (DCA) to
submit an annual report to the Legislature and the Department of
Finance that includes an implementation plan for phase three of
the "BreEZe" computer system. Specifically, this bill:
AB 507
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1)Requires the DCA, on or after January 31, 2016, to submit an
annual report to the Legislature and the Department of Finance
that includes the following:
a) The DCA's plan for implementing the BreEZe system for
the regulatory entities in the third phase of the
implementation project, including a timeline for
implementation.
b) The total estimated costs of implementation of the
system for the regulatory entities in the third phase of
implementation along with the results of any cost-benefit
analysis DCA conducted for the third phase.
c) A description of whether the BreEZe system will achieve
any operational efficiencies after being implemented by
boards and regulatory entities.
2)Lists the 19 regulatory entities to be included in the DCA's
third phase of the implementation project.
FISCAL EFFECT:
On-going minor and absorbable costs to DCA (GF) to complete the
annual report.
COMMENTS:
1)Purpose. According to the author, "In order to ensure that
AB 507
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Californians can rely on the services they depend on in a
timely and efficient manner - even after implementing new
technology - the Legislature and Department of Finance need to
keep a close eye on the negotiation, planning, development and
implementation processes for the boards that we entrust with
licensing professionals."
2)Background. In 2009, DCA proposed the BreEZe information
technology system and the California Department of Technology
(CalTech) approved the proposal. BreEZe was envisioned to
replace DCA's out of date Legacy technology system and would
provide needed applicant tracking of licensing, renewal,
enforcement monitoring and cashiering support for 37 of the 40
boards, bureaus, committees and one commission housed within
DCA. The project began in 2011, and BreEZe was launched for
ten of the regulatory entities (release 1) in 2013. BreEZe is
intended to be launched for another eight entities (release 2)
in March, 2016.
In the midst of BreEZe implementation for the regulatory
entities in releases 1 and 2, the DCA's management of the
project came under public scrutiny, and the Joint Legislative
Audit Committee (JLAC) approved an audit of the policies and
procedures used in the planning, development and
implementation of BreEZe. On February 12, 2015, the State
Auditor released a report indicating that: a) DCA did not
adequately plan, staff and manage the project for developing
BreEZe; b) CalTech did not ensure oversight for BreEZe until
more than one year after the project's commencement; and c)
the three contracts that DCA awarded and the Department of
General Services approved for the BreEZe project did not
adequately protect the State. The State Auditor also provided
the recommendations contained in this bill.
AB 507
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Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081