BILL ANALYSIS
AB 978
Page 1
( Without Reference to File )
ASSEMBLY THIRD READING
AB 978 (V. Manuel Perez)
As Amended January 26, 2010
Majority vote
ECONOMIC DEVELOPMENT 6-0 APPROPRIATIONS 12-0
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|Ayes:|V. Manuel Perez, Logue, |Ayes:|De Leon, Ammiano, |
| |Beall, | |Bradford, Charles |
| |Bill Berryhill, Block, | |Calderon, Coto, Davis, |
| |Salas | |Fuentes, Hall, John A. |
| | | |Perez, Skinner, Solorio, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the State Chief Information Officer (CIO), to
collaborate with the Department of Consumer Affairs (DCA) to
acquire a new integrated, enterprise-wide system that will
replace the current licensing and monitoring system being used
by the department. Specifically, this bill :
1)Declares that given these difficult economic times for small
businesses, it is fair and appropriate to expend resources to
reduce the cost of obtaining state licenses by developing an
online master licensing system.
2)Requires the CIO to collaborate with DCA to acquire a new,
integrated, enterprise-wide system being used by the
Department. Specifies that the new system shall be web based
and may include applicant tracking, licensing, renewal,
enforcement monitoring, cashiering and data management
capabilities.
EXISTING LAW established the Office of the State CIO in August
2007 with statutory authority over strategic vision and
planning, enterprise architecture, information technology
policy, and project approval and oversight.
FISCAL EFFECT : According to the Appropriations Committee, the
Administration is currently working on a new automated licensing
AB 978
Page 2
system (BreEZe system) for the DCA. Over the life of the
project, the BreEZe system is estimated to cost approximately
$30 million (various DCA licensing funds).
COMMENTS : 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 agencies
to obtain permits and licenses. The process is lengthy and is
not conducive to a positive business climate.
In 2009, the Assembly Committee on Jobs, Economic Development
and the Economy held hearings on the challenges small business
are currently facing. Several owners of small businesses said
the areas of concern were with the licensing and regulatory
burdens. 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.
DCA is in the beginning stages of creating a multiphase
project which begins with the BreEZe system. The system will
be designed in such a way as to provide a broader online
portal that other state agencies can use for their
e-government activities. Having the CIO give guidance to this
project is important so that the final product is both cost
effective and reflective of the needs of the public. Lastly,
funding for this project comes from a failed IT project called
"I Project," the $30 million budget was redirected toward this
new system.
Analysis Prepared by : Mercedes Flores / J., E.D. & E. / (916)
319-2090
FN: 0003637