BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           978 (Fong)
          
          Hearing Date:  7/15/2010        Amended: 1/16/2010
          Consultant:  Bob Franzoia       Policy Vote: G O 7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 978 would require the State Chief Information  
          Officer to collaborate with the Department of Consumer Affairs  
          (department) to acquire a new, integrated, enterprise wide  
          enforcement and licensing system that will replace the current  
          system used by the department.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11     2011-12       2012-13     Fund
           New automated licensing$2,080*    $7,000      $7,000     
          Special**              
          system                 
                                 total costs of $30,000 or more, unknown
                                 efficiency savings in future years

          * Proposed 2010-11 budget action
          ** Various special funds within the department
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          The department licenses more than 2.5 million licensees in more  
          than 100 business and 200 professional categories.  The  
          department processes more than 350,000 applications annually for  
          professional licensure and an estimated 1.2 million license  
          renewals.  The department includes 40 regulatory organizations  
          (nine bureaus, one program, twenty-five boards, three  
          committees, one commission, and one office).  The department,  
          whose operations are funded exclusively by license fees,  
          provides administrative and technology support to the smaller  
          organizations.

          This bill states the new system shall be Web based and may  
          include applicant tracking, licensing, renewal, enforcement,  










          monitoring, cashiering, and data management capabilities.

          Staff notes the department has commencing work on an automated  
          licensing system.  Over the life of the project, the BreEZe  
          system is estimated to cost $30 million and would be funded by  
          the various department licensing accounts and funds.  Both the  
          Assembly and the Senate budget subcommittees approved 2010-11  
          funding from redirected funds and adopted trailer bill language  
          requiring the final contract be submitted to the Joint  
          Legislative Budget Committee.  Because the current system is  
          paper, thus staff intensive, also adopted was a requirement for  
          an analysis of operational efficiencies once the BreEZe system  
          is operating.  At this time, those efficiencies are estimated at  
          $500,000 in 2014-15 and ongoing.