BILL ANALYSIS
Bill No: AB
978
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 978 Author: V. Manuel Perez
As Amended: January 26, 2010
Hearing Date: June 22, 2010
Consultant: Art Terzakis
SUBJECT
State Chief Information Officer: duties
DESCRIPTION
AB 978 requires the State Chief Information Officer (CIO)
to collaborate with the Department of Consumer Affairs
(DCA) to acquire a new, integrated, enterprise-wide
enforcement and licensing system that will replace the
current licensing and monitoring system being used by the
department. Specifically, this measure:
1. Requires the CIO to collaborate with the DCA to
acquire a new, integrated, enterprise-wide enforcement
and licensing system that will replace the current
licensing and monitoring system being used by the
department.
2. Provides that the new system shall be Web based and may
include applicant tracking, licensing, renewal,
enforcement, monitoring, cashiering, and data management
capabilities.
3. Makes various legislative findings relative to the role
small businesses play in the state's economy and the
regulatory burdens and costs that plague those businesses
and declares given these difficult economic times for
small businesses, it is fair and appropriate to expend
resources to reduce the cost of applying for
state-administered licenses and permits by developing an
online master application
AB 978 (V. Manuel Perez) continued
Page 2
EXISTING LAW
Existing law establishes the Office of the State CIO with
statutory authority over strategic vision and planning,
enterprise architecture, information technology policy, and
project approval and oversight.
BACKGROUND
Purpose of AB 978: According to the author's office, 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.
The author's office cites a recent survey by Small Business
California which found that 85% of small businesses felt
the state was heading in the wrong direction. That same
survey revealed that "regulations" placed among the top
five issues identified by small businesses as needing to be
immediately addressed by elected officials in Sacramento.
Additionally, 61% of small business respondents ranked
regulations as either their top priority or a high priority
for state action.
The author's office notes that the Department of Consumer
Affairs 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. The author's office believes that
requiring the CIO to give guidance to this project is
important so that the final product is both cost-effective
and reflective of the needs of the public. The author's
office points out that funding for this project comes from
a failed IT project called "I Project," the $30 million
budget was redirected toward this new system.
AB 978 (V. Manuel Perez) continued
Page 3
PRIOR/RELATED LEGISLATION
AB 2408 (Smyth) 2009-10 Session. Would codify the
organizational structure created by the Governor's
Reorganization Plan No.1 of 2009 which consolidated state
information technology functions under the Office of the
State CIO. (Pending in this Committee)
AB 485 (Arambula) 2005-06 Session. Would have required
the State and Consumer Services Agency to conduct a
feasibility study on the creation of a Master Business
License Center, which was recommended in the California
Performance Review report. (Held in Senate Appropriations
Committee)
AB 2330 (Arambula) Chapter 232, Statutes of 2006.
Required the Office of Small Business Advocate to
commission a study on the costs of state regulations on
small businesses.
SUPPORT: None on file as of June 18, 2010.
OPPOSE: None on file as of June 18, 2010.
DUAL REFERRAL: Senate Committee on Rules
FISCAL COMMITTEE: Senate Appropriations Committee
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