BILL ANALYSIS
AB 2659
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2659 (Tran) - As Introduced: February 19, 2010
Policy Committee: Business and
Professions Vote: 11 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Business Master License Center (BMLC)
within the State and Consumer Services Agency. Specifically,
this bill:
1)Creates the BMLC as a one-stop system for all business
licenses within the state.
2)Establishes the BMLC's duties, which include:
a) Developing and administering a computerized one-stop
licensing system.
b) Identifying types of licenses appropriate for inclusion
in the system.
c) Recommending to the governor and the Legislature the
elimination, consolidation, or other modification of
duplicative, ineffective, or inefficient licensing or
inspection requirements.
3)Lists agencies that are required to participate in the BMLC.
4)Permits the governor to appoint a third-party facilitator from
the business community who shall report directly to, and serve
at the pleasure of, the governor.
5)Requires the third-party facilitator to provide oversight over
the creation of the BMLC and the development of the system.
6)Creates the Master License Fund within the State Treasury for
the receipt of administrative fees that shall, upon
appropriation by the Legislature, be used to administer the
AB 2659
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BMLC.
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 (DCA). Over the life of the project, the BreEZe
system is estimated to cost approximately $30 million (various
DCA licensing funds).
COMMENTS
1)Purpose . AB 2659 establishes the BMLC to serve as a one-stop
shop for new and existing businesses to obtain and renew state
licenses, forms and applications. The author contends that
"California's regulatory environment is burdensome and
difficult to navigate." His intent is that by condensing the
many applications, forms, and licenses that businesses must
complete to a single location, California will become more
appealing.
2)Related Legislation . SB 959 (Ducheny) of 2010 requires the
Office of Planning and Research to consult with the State
Natural Resources Agency and California Environmental
Protection Agency to develop a consolidated information form
and a consolidated application form for use by applicants for
development projects. This bill is currently pending in the
Senate Environmental Quality Committee.
SB 980 (Huff) of 2010 creates a BMLC with prescribed duties,
including, but not limited to, developing and administering a
computerized one-stop master license system capable of
storing, retrieving, and exchanging license information, as
AB 2659
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well as issuing and renewing master licenses, as specified.
The bill would permit the governor to appoint a third party
facilitator from the business community, to provide oversight
over the creation of the BMLC and the development of its MLS.
This bill is currently pending in the Senate Business,
Professions, and Economic Development Committee.
AB 978 (V. Manuel Perez) of 2009 requires the State Chief
Information Officer to collaborate with DCA to acquire a new
integrated, enterprise-wide system that will replace the
current licensing and monitoring system being used by DCA.
This bill is currently pending in Senate Governmental
Organization Committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081