BILL ANALYSIS
AB 978
Page 1
Date of Hearing: January 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 978 (V. Manuel Perez) - As Amended: May 7, 2009
Policy Committee: Jobs, Econ
Development and the Economy Vote: 6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the office of the state Chief Information
Officer (OCIO), in collaboration with relevant state agencies,
to develop an online master application for businesses to file
for state permits and licenses.
FISCAL EFFECT
1)Costs in excess of $50 million ($15 million GF) depending on
the number of participating departments and whether or not the
licensing done by the Department of Social Services (DSS)
Community Care Licensing Division (CCLD) and the Department of
Public Health (DPH) Licensing and Certification Division (L &
C) are included in the scope of the project. DSS is
responsible for licensing various types of facilities and
workers, including those providing child care services and
foster care. DPH is responsible for licensing all hospitals,
surgical centers, home health agencies, and skilled nursing
facilities in the state.
2)The administration is currently beginning work on a new,
automated licensing system for the Department of Consumer
Affairs. Over the life of the project, the BreEZe system is
estimated to cost approximately $30 million (various DCA
licensing funds).
COMMENTS
1)Purpose: According to the author, small business owners face
many challenges when they want to start or expand a business
in California. They must navigate through many different
AB 978
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agencies to obtain permits and licenses. The process is
lengthy and is not conducive to a positive business climate.
According to the author, licensing and regulatory burdens
continue to be a major concern for small businesses. In a
recent survey by Small Business California, 85% of small
businesses felt the state was heading in the wrong direction.
Regulations placed among the top five issues identified by
small businesses as needing to be immediately addressed by
elected officials in Sacramento. Sixty-one percent of small
business respondents ranked regulations as either their top
priority or a high priority for state action.
The author states that given the current deficit budget
environment, the state must, at a minimum find ways to control
the rising costs of regulatory compliance. The author and
sponsor, the Assembly Jobs Committee, believe that this bill
will provide a cost effective and streamlined licensing and
permitting process, thus reducing the cost of doing business
in California.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081