BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1327|
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THIRD READING
Bill No: SB 1327
Author: Cannella (R), et al.
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 12-0, 4/10/12
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De Le�n, Hernandez, Padilla, Walters, Wyland,
Yee
NO VOTE RECORDED: Evans
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/24/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
SUBJECT : State government: business information:
Internet Web site
SOURCE : Author
DIGEST : This bill requires the Governor to create a
one-stop-shop Internet Web site to provide individuals with
essential information (e.g. permitting, licensing and
regulatory) for establishing a business in California.
ANALYSIS : Existing law requires a business to obtain
various licenses from regulatory agencies. Executive Order
S-05-10 created the Office of Economic Development in the
Governor's office, for the purpose of coordinating economic
development activities in the state.
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Existing law also (1) establishes the Office of Business
Development (GoBiz) within the Governor's Office, under the
control of a director who is appointed by the Governor, for
the purpose of serving as the lead entity for economic
strategy and marketing of California on issues relating to
business development, private sector investment and
economic growth, (2) provides for the California Economic
Strategy Panel within the Labor and Workforce Development
Agency to provide recommendations regarding an economic
development strategic plan and charges the panel with the
new responsibility of addressing the development of a
system of accountability for use in the annual state budget
process, (3) provides that the California Small Business
Financial Development Corporation Law, creates the Office
of the California Small Business Board and imposes numerous
duties on the Secretary of Business, Transportation and
Housing, (4) creates the Office of Small Business Advocate
within the Office of Planning and Research, and imposes
various duties and requires the Governor to appoint the
director of the Office of Small Business Advocate, and (5)
provides for the California Business Investment Services
program, which is currently operated by the Labor and
Workforce Development Agency.
This bill:
1. Requires the Governor, or his/her designee, to establish
an Internet Web site to provide individuals with all of
the necessary information on how to start a business in
California.
2. Stipulates that the Internet Web site must contain
information on the licensing, permitting, and
registration requirements of state agencies and include,
but not be limited to, information that does all of the
following: (a) assist individuals with identifying
application forms and other necessary documents; (b)
provide a digital copy of all forms and documents
available for download; and, (c) instruct individuals on
how and where applications and other forms and documents
are to be submitted.
3. Requires that the Internet Web site be user friendly
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with accurate information about licensing requirements.
4. Prohibits a state agency from using the Internet Web
site created pursuant to this measure as the exclusive
source of information for the public to access licensing
requirements.
5. Authorizes the imposition of reasonable fees as a
condition of accessing information on the Internet Web
site established pursuant to this measure.
Background
Purpose of this bill . The author's office notes that in
recent years many different surveys and organizations have
named California's business climate as one of the worst in
the nation due to issues such as "high regulatory costs"
and "high levels of state and local government spending and
debt." The author's office argues that these problems all
negatively affect the economy but perhaps those hardest hit
are small businesses. The author's office states that
there are approximately 3.4 million small businesses in
California, representing 99.2% of the state's employers and
52.1% of California's private-sector employment. The
author's office contends that small business owners often
do not enjoy the benefits of unlimited capital and time and
that a complex permitting and licensing system compounds
the problem by adding another barrier to starting a small
business.
The author's office also points out that the Employment
Development Department operates "CalGOLD," a database that
directs users to the correct agencies for permits and
licenses. The author's office argues that while useful,
CalGOLD does not store application forms; it is simply a
catalog of information. For example, if an individual
wanted to start a construction company building single
family homes, he/she would have to contact 14 different
state entities to obtain the necessary paperwork. This
bill is intended to correct the flaws with this existing
program (and others) by providing a centralized location
for all permitting needs.
Milton Marks "Little Hoover" Commission on California State
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Government Organization and Economy . In February 2010, the
Little Hoover Commission released a report, entitled
"Making up for Lost Ground: Creating a Governor's Office
of Economic Development." The report analyzed the status
and effectiveness of the various entities of the defunct
Technology, Trade and Commerce Agency that had been
reorganized into other entities. The report recommended
the creation of a new governmental entity that would
promote greater economic development, foster job creation,
and deliver specific services such as permitting, tax, and
regulatory information directly to the California business
community.
The California Performance Review (Executive Order S-5-04) .
In response to Governor Arnold Schwarzenegger's challenge
to change and reform California, the California Performance
Review (CPR) was established to restructure, reorganize and
reform state government and to make it more responsive to
the needs of its citizens and business community. One of
the recommendations of the CPR was to create a one-stop
business license center for California businesses.
The CPR noted that, "People who want to start a business in
California do not know where to begin. Even established
business owners find it difficult to navigate the state
bureaucracy. A one-stop business license center should be
created to provide a single point of contact, accessible by
both telephone and the Internet. Such a center would
streamline processes, resulting in better customer service
for business owners while increasing regulatory compliance
and revenue." The CPR continued, "People wanting to do
business in California must interact with the state to
establish and maintain their businesses. They must obtain
necessary permits and licenses, register their businesses,
report information and pay taxes. For instance, a business
in California is required to register with the state for
purposes of reporting sales taxes, income taxes, employee
wages and insurance. In addition, business owners are
required to obtain a variety of licenses and permits to
carry out certain activities, such as selling alcohol or
collecting debts. These are just a few of the
requirements. A business owner could be required to
contact nine or more state departments and agencies for a
single business."
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The Senate Appropriations Committee indicates costs up to
$100,000 from the General Fund and special funds one time
to develop digital copies of all state applications, forms
and other similar documents available for download, and
minor ongoing General Fund and special fund costs to
maintain the Web site.
DLW:kc 5/24/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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